Transcription
If you ever looked at a chart and have no idea where to start, then this video is for you. I'm going to walk you through my exact top-down process, step by step, from the highest time frame all the way down to my entry. Every single trade I take follows this exact sequence. No shortcuts, no skipping.
By the end of this video, you're going to know exactly how to go from a blank chart to a well-defined trade. And if you want me to personally coach you through applying this to charts every single day, the link is in the description. Without further ado, let's get into it.
The main thing I do is not like to overcomplicate it. I like to start on my M5 time frame as I'm an intraday trader. And I just want to decide, "Okay, I'm not looking for zones or fair value gaps or anything. I'm purely looking at direction. Does price currently look like it's pushing higher? Does price currently look like it's pushing lower?"
Let's look at what we previously did. Well, we had a low. We broke structure at this low here. So, we were definitely breaking lows. And if we look, we were respecting highs, breaking lows, breaking low, respecting high, breaking low, breaking high. So, this is the first instance of, "Okay, this could be a shift." Now, if you're purely going off this thinking, "Yeah, it's not stop. I'm not moving." you're going to get cooked a lot. You want to see what happened after we broke this high. After we broke this high, we made a what? A higher high. Then guess what? We're now respecting lows and doing what? Breaking highs. So, as I can see now, highs are being broken, lows are being respected. So, I just have to guess the next couple 5-minute candles. Not what's going to happen up here or up here. Just this next little area here. And based on this, the fact that we've stopped breaking lows and started breaking highs, and stopped respecting highs, and instead started respecting lows, my next couple candle bias is purely bullish. Just like that, I've gotten my structure, I've gotten my bias.
Where does that bias finish? Where is that bias invalid? Well, then I mark out this low to this high. Because we're going to continue to put in higher highs and higher lows, this is my current higher low, which has broken structure. So, we should not make what? A lower low. So, I'm expecting price to respect this particular low and then pull higher. I have my bias, I want to find the last break of structure in that direction. So, I can see we made a low, a high, a low, a higher high. Now, someone might ask me, why are you not including this small structure here? I like to include the most obvious structure. For example, if I went up a time frame, all right? This is too small for me to include, okay? So, I just include the obvious structure. And for me, if we're looking at obvious view, it's low, high, low. Higher high. What does that mean? That means I can mark my range now. This is my shift, which gives me my protected low here and my current high up here. So, if we're bullish and I'm expecting higher highs and higher lows, that means I'm not expecting price to break this low and I'm looking for a higher high. That is my bias, that is my direction game plan sorted.
Now, for step two, I can go to the higher time frame and see a point of interest within this area. This is not a necessity, but this is how you get the strong POI. So, I like to go to the hourly time frame and I did a couple videos on this recently. I am looking for a swing low and a candle close above that low. Here we have a swing low. And the lowest bearish candle to the left isn't this one because this did not close below this candle's wick. So, it's actually this candle here. So, if anything, it's actually just this whole entire zone, okay? This holding zone is an hourly swing low, which means it's a strong POI. That gives me extra confidence. However, let's refine that now. We can always refine. Let's look at the origin. That is where price went from bearish to bullish. You can see price was trending lower, origin kicked in, we pushed higher. So, this here is where sellers were first defeated. We want to highlight this area. What do we notice about this high to low here? Price left it, mitigated 50% and then pushed higher. What does that mean? This area is mitigated, not fresh. Orders have been filled, so I can no longer use this as a POI.
What do we have? Later, we're looking for another break structure. So, we look at structure, low, high, low, high, low, high. So, this high to low is another potential point of interest. But, what do we notice with this area, too? We broke it. That can include a wick. Mitigated 50% and pushed higher. So, again, this area is mitigated. We need to enter from a valid POI, otherwise your chance of your winning trade probability is so much lower. So, now we look at the next high to low, which is here. What do we notice about this high to low? This high to low is fresh. We can see since breaking out of it, we have not come towards this 50% level. So, this is my particular area I want to take a trade from. And we've gone from highlighting this entire area to simply focusing on this high probability area here.
Next step is simply looking for liquidity, okay? And in an uptrend, my liquidity is lows that have broken highs, okay? This here is not liquidity because it did not, all right, this low did not break the high it came from. So, only when we break a high, basically like a mini breaker structure, I can include a wick as my liquidity. So, what do I know? I know I'm looking for an an entry in here. So, obviously I want liquidity to be above here, so we sweep liquidity and then come into here. So, do I have any lows that have broken highs? Yes, we have this low here which did what? It broke this high. High, low, higher high. If I drop down to the lower time frame, it'll look like a mini breaker structure. You can see high, low, higher high. So, this is valid liquidity for me. Now, if I mark out my six taps, it will simply be like this. One, two, three, four, five. Knowing that this is liquidity, so what are we going to do? We're going to wait for price to sweep this liquidity, can come into our zone. Boom, we have swept liquidity and come into our zone.
Now, I'm not going to blindly enter because price can for sure do that and I get cooked. So, now I need a sign that we want to push back higher. So, I simply drop down to my lower time frame, which is the 1-minute, and look for a shift of structure of some sort. Now, right now you can see we are clearly bearish with no possible sign of a reversal. Remember, I'm looking for sign that price does indeed want to bounce from here. Let's see what we have. Okay, this is interesting. I can see we had this bearish fair value gap. If price wanted to continue lower, what are we going to do? We're going to tap into and make a lower low. But, this bearish fair value gap failed to make a lower low as we can see there. And then we actually inverse there with a good close. So, that is a sign, most importantly in my POI, not just a random area, in my POI, that price wants to bounce. So, I can enter my longs here, stop loss below, and target a higher high. We play that out. Boom, price smashes TP and continues with the uptrend.
So, if we go back to our 5-minute timeframe, all we're trying to do in an uptrend is catch the higher low that gives us the higher high. All we're trying to do in a downtrend is catch the lower high that gives us the lower low. That is pretty much it. I go on the M5, I dictate the structure, I'll be more likely to push higher or lower to the hourly, and I see if we have a nice valid low or valid high within our M5 range as a great POI, refining to see which one is still fresh and which one has liquidity. Once we do that, we sweep liquidity, come into our refined POI, we drop down to the lower timeframe, look for look for confirmation to enter. Boom, all four steps done, you now have a high probability trade in your hands. But you're not guessing, you're not hoping, you're reading exactly what the market is telling you from one timeframe down to another, down to another, only pulling the trigger when all four pieces aligned.
You want me to personally help you through this process, apply it to live charts, and finally get consistent payouts, then you can apply for the one-on-one link in the description below. If you also want to watch me livestream my trading every single day and get full access to daily trade breakdowns, market breakdowns, etc., for the premium Discord is in the description below. And yeah, if you did like this video, as always, appreciate your likes, comments, subscribes, and I'll catch you in the next one.