Transcription
Most traders lose money not because they don't know how to trade, but because they take trades they have no business being in. Too many setups, too many guessing, too much noise. That's why I have stripped my entire pre-trade process down to three simple steps. Works on any chart and if one is missing, I do not click a button. And by the end of this video, you're going to have the exact same process that I use. But if you want me to personally help you apply this live into the charts, the link is a description for the one-on-one mentorship, but apart from that, let's get straight into it.
So, step one is by looking for a clean hourly zone. And what does that look like? Well, we're trading in direction of the higher time frame and where price wants to go, so our lower time frame entries and zones are going to be so much more high probability. What do I mean by a clean zone? Well, the first thing I need to see is because we are in an uptrend here, I need to find a swing low. Okay, here we have a swing low. And I need to find the lowest bearish candle to the left of it, which is here. And we close above that. So, mark out this high to low here is a valid area of demand on my higher time frame. And I can also see it's giving me a big impulse up. Here we have another valid swing low. We look to the left, lowest bearish candle here. And guess what? We closed above it. It's not valid until we close above the highest point of here and we can mark this as well. So, we have two possible areas of demand in which we can look for price to tap into and push higher.
This is now where I go into step two, which is aligning with my M5 time frame. So, this is how the hourly zones look like on the M5. You can see we had this zone here and we had this zone here. So, I obviously want to be trading higher if price is bullish and trading lower if price is bearish. However, if I look at this here, we have a break of structure. We have another break of structure here. So, this is my potential protected low, or this is my potential protected low. I'm always looking at the last two. If we come down into this third zone here, then we've broken one low, two low. This is no longer an uptrend, which means I should no longer be looking for area of demand. So, that's where you need to align it with your M5, which tells me that this is the only one to focus on. So, now, if I mark this area here also on the M5, I need to check, do we have liquidity on this M5? Yes. Liquidity is a tap that most importantly makes a higher high. So, we have a break of structure above our zone, higher low, break of structure, and is it still fresh? Yes, because look, 50% unmitigated. So, we found our hourly trend, which is bullish. We found our zone, then we saw on the M5 which one aligns with our M5 structure and has liquidity and is fresh.
Now, step three, of course, is confirmation. Once we sweep that liquidity there, I can't just randomly hope we get a bounce. I need to wait for confirmation. So, boom, now we've got the sweep in structure. What sort of confirmation can I look for? Well, ideally, I can drop down to the 1-minute time frame, and I want to see a shift in structure, which is above this high here, because then we've done low high, low high, low higher high. So, that's a good confirmation that price wants to shift back to bullish. Also, on the higher time frame, I always check on the 1-minute and the 5-minute when I'm looking for confirmation. I can see we have this fresh gap. So, I want to be careful taking this 1-minute change of character when I know we do have a fresh gap there, cuz that could be a fake providing liquidity for the gap to dump lower. So, once we inverse this gap, okay, what do we do now? We make a new low, which in turn gives us what? A new high. So, now I have a new range or new shift to go off. I wait for us to close above, perfect, Then I can take my longs and target higher prices. I play that out, boom. Instant reaction. Beautiful. From the 1-hour to the 5-minute down to confirmation.
Now, let me give you another example. Again, what are we looking for? We're looking for a clean hourly zone. We're making sure it makes sense with the M5 structure. And of course, we're looking for confirmation. So again, let me start on this hourly chart here and look for a clean zone. Well, this case, I can see we're pushing lower. So I'm looking for a swing high, the opposite. What is the highest bullish candle to the left? It's this one here. And we need to close below that bullish candle. So I can mark this here as my area of supply. What was step two? Making sure we are in an M5 downtrend and it makes sense on my M5. Well, in my M5, I can see we had high, low, high, lower low, lower high, lower low, lower high, lower low. So we are definitely in a downtrend and I am definitely looking for sales over buys, marking out this M5 or this hourly low hourly high that we found. Does it have liquidity in here? Yes. Okay. Is it still fresh? Yes. Is it above my protected high? No, this isn't real structure. This is my real structure. So we're still in a downtrend on my M5 when we come into here. So everything again is aligning that you know what? This is a good trade to take. Of course, I need confirmation. So there we have the sweep. What sort of confirmation can I get in this setup here? Well, I can see we have this bullish fair value gap that price has tapped into. And let's see what it does. We failed to make a new high with this bullish fair value gap and we inverse it. Good confirmation of a rejection. Stop loss above the high. Target lower prices. And what happens? Boom. TP smashed. Two exact trades. One selling, one buying using the same method.
Now, I want to know which one of these three steps do you struggle with the most. Put it in the comment section below so I can read it and help you out. If you're serious about consistency and you want me to be in your corner every step of the way, you can apply for the one-on-one mentorship. Link is in the description. If you also want to get access to my videos and watch me live stream every single day, you can click the link to join the premium in the description, too. Apart from that, appreciate your time as always. Appreciate your likes and subscribes. And I'll catch you in the next one.