Original subtitles

Hi and welcome back and in this video I want to talk about trading with the

trend and why a lot of people get this wrong. So there are two main reasons

people get this wrong. The first is that they are concentrating on a lower time

frame and therefore they might be participating in this move here which

appear to be a downward move on a lower time frame but actually when you scale

out you can see it's very clearly just the pullback of the upward move so

there are a lot of cells within this move itself you can if you get in too

down the move get caught in a trade that's going to hit a stop loss because

is due to go back up again so that is why it is very very important to be

of market structure on higher time frames

In addition to that, another mistake that people often make is that they will

not zoom out far enough. So let me just show you what I mean by this. We look at

a 30 minute chart.

Obviously, on a 30 minute chart, you've got a very limited amount of data.

So you may look at this and think, oh, well, we're clearly in a down move here.

But actually, if you scroll out, what you'll see is that, yes, we are in a

temporary down move, but actually.

that pull down move is just the retrace or the pullback of this upward move.

And so with that in mind, it is important to make sure that you are

timeframes above the one that you're trading to make sure that if you are

trading counter trend, that you're only going to trade it to an area that is

realistic. Because the chances are, if you're trading an upward trend

in a sell, that you're going to get stopped out because at some point that's

going to continue so as i was saying this is currently an upward trend but

it is a downward pullback of an upward trend so when we've talked about you

supply and demand zones what you can do is to come onto your chart on your

higher time frames and say okay where potentially could this end

So we take some rectangles. Obviously, there's going to be a zone here, which

you can see that price is currently wicked into and rejected. So it could be

that price is going to start and turn around again and go up. What you've also

got is another area down here.

So as part of the current swing leg on the daily chart, we have two potential

zones that could.

create a turnaround in price and continue that uptrend obviously if it

this low here then potentially it could be starting to swap to a

bearish market however right now we're still within bullish structure we're

doing a bit of a retrace so if we were trading cells we would want these areas

marked up so that we knew that potentially when price reaches these

there could be another turnaround to the upside so you can use those as exits

within your cells so supply and demand isn't only useful for entries it's also

useful for you to know the limitations of your counter trend trades that's

important to bear in mind.

So let's say that you had got into a sell move, you'd met some criteria here

you'd got into a sell move up here and you were selling and selling and selling

and all of a sudden you see that price comes down to this zone and it's tested

it once here and came out of it and then it's wicked out of it a second time.

It's probably not worth staying in that trade because it's now starting to give

you signals that it doesn't particularly want to stay in that area.

And that doesn't mean to say that it won't, but it is starting to give you...

you some information and right now that is all of the information we have so

it's a case of you know reading what the market's telling you it doesn't always

work out we're not always going to get it right but if you were in a sell trade

here because of a lower time frame trend downwards then you might think actually

it's time to exit that trade it doesn't particularly like this area that could

be an area to create a turnaround back to the upside That's where I'll exit my

trade. So the reason that most people get the trend wrong is that they're

on lower timeframes and therefore they are looking at a trend on say 15

minute like this, but actually not realizing that that is part of an upward

trend or they are only looking at a small section of price. So for example,

you were to come onto your daily chart and let's just say that none of this has

happened yet.

and you kind of looked at this you could say oh well price is coming down it's

just made a low high clearly it is in a downward move but actually if you scroll

out farther you can see the bigger picture of what's going on so those are

two tips when it comes to establishing your trend mark your structure out make

sure that you're checking the higher time frames and i would even go so far

the weekly chart possibly even the monthly chart to so that you can see

what's happening and make sure that you're looking at a big snapshot of the

market not just the small area of it so I hope that that's been helpful and I'll

see you in another video