All language subtitles for 5. Beginner Trading System

okay so now you have kind of seen how you should sort of start to go about

creating your own plan and really how to you know follow a system to actually

define your own sort of you know trading uh your own unique trading personality

um you know tailoring that to actually your your own current lifestyle and your

training goals but

you know i know trying to do something from scratch

especially for the first time or you know with a completely sort of brand new

strategy it can be quite daunting to do that so just thought it'd be quite

useful for you guys to kind of put together um a beginner trading system um

you know and by beginner i don't necessarily mean that in terms of

difficulty level what i mean more is just that it's a beginning or a starting

point for you to take as a plan but then to take that

and mold it into your own right so you can basically just use it as an

example of kind of what a basic plan can kind of look like and then yeah you

definitely need to take that follow that process that we've just gone through in

the previous lesson and of course you will build that evolve

it and mold it into something of your own um as you gain experience testing

and trading it eventually in the live markets

so first you need to decide what process and system you're going to follow for

mapping out your charts so this is just essentially your overall

process for how you're going to analyze price so obviously we start with that

top-down approach in this case we're going to start with

the weekly and the daily time frame because it's these time frames that are

going to give us our higher time frame perspective to see where the four hour

trend is kind of likely to turn around um or potentially uh reverse

so we're going to map out the current daily and weekly swing ranges so that's

really simple you're just mapping out the swing high and the swing low on each

of those time frames and then of course also drawing on any relevant supply and

demand zones so you don't want to be going on there

and you know drawing on every single historical zone like we have been when

we've been practicing instead when you're doing this in the

live market you want to keep your charts as clean and free of clutter as possible

so that we can actually focus on you know the relevant price action um yeah

it just makes it a lot easier to see what's going on

so just draw in the zones that help you build the current story of price you

know up into the point that we are now in the market and of course draw on any

fresh zones near the current price action that you will be looking to

potentially trade around and once we've mapped out the weekly and

the daily we then drop down to the four-hour chart and pretty much follow

the exact same process so we're gonna be mapping out the current swing range the

price is within the premium and the discount of that range and then as well

as any relevant supply of demand zones so we're using the four-hour time frame

to give us kind of the overall narrative of price now you know what does that

mean narrative of a price well essentially it's to understand if we you

know are we currently playing the four-hour continuation or are we playing

a four-hour pullback right so that way we know sort of how aggressive or

conservative we can be with entries and management kind of you know how far to

try and push that so then we can drop down to the m15

which is our medium timeframe and this kind of gives us our immediate bias for

the training day or kind of for that session

and we use this to confirm the four hours the the four hour turning points

as well so kind of you know confirming if the four hour is about to start a

pullback um or if say the higher low in a bullish trend or

a lower high in a bearish trend whether that may be forming and the next four

hour continuation run is about to start right and we do this by following the

exact same process of mapping out the current m15 swing range so the high and

the low and we use that to draw the premium and discount of that range and

of course as well as any relevant supply and demand zones

now i haven't actually listed here on the on the slide um but of course you

know during this entire mapping process you can be marking out any relevant

liquidity on your charts to you know on each time frame that you use so that's

you know liquidity that has been swept and also any you know pools of liquidity

that are sitting there that you think may be swept uh in the future so then

once price has reached the m15 or the four-hour poi you can then drop down to

your execution time frame so in this case the m1 time frame and then you wait

for your entry model to set up execute the trade if you know that setup arises

and then you follow your management plan so essentially with this method you know

if you're kind of to very crudely simplify it what you're trying to do is

you're essentially primarily using the four-hour chart for kind of mapping out

your your key swing structure you're then using the m15 for identifying

points of interest that just means that the zones that you want to trade from

and then you're using the m1 to execute trades within those pois so once price

has kind of reached those m15 pois you then drop down to execution time frame

to then look for your entry model so essentially what you're doing is

you're focusing on the four-hour trend and you're trying to play all of the

continuations all the way towards that next four-hour zone and you can use

you can use the m15 pois to do this with m1 execution

so for instance let's say that the four-hour chart was bullish and it's

trending to the upside so long plays they're going to be the

higher probability positions right because they are pro the four-hour trend

and of course you can look to catch the four-hour higher lows from those

four-hour demand zones right but you don't just have to wait for you know

four-hour poise to enterprise um you don't have to wait for price to only be

in four-hour zones because what you can do is you can trade that whole four-hour

leg using the m15 pois as they form as the four-hour is trending right to the

upside and of course you can play the four-hour pullback just in the exact

same way i'm looking for those m15 supply zones as the four hour is putting

back so all of that there is essentially our

mapping framework of how we would be viewing price action

with this system now you can't have this written down in your plan you don't have

to you know do do it if it's useful put in more detail here whatever but this is

kind of just to get you thinking of kind of just how this system how the system

works um and kind of what you will be doing from from a process side of things

when you're actually analyzing and looking at the charts each and every day

so now what we can do is look at kind of more what your kind of actual plan is

for for trading that analytical framework that we've just gone through

so the first bit we need to look at is how we choose to select a higher time

frame poi for us to build a trade idea around that poi right around that point

of interest so you would look for a zone that is

visible on at least the m15 time frame or higher so it could be a zone on the

m15 it could be on the m30 it could be on the one hour the four hour or a daily

zone for example but m15 is the lowest you will go

for finding and selecting those higher time frame pois

now you may want to define that in a situation where say you are using a

four-hour zone for your higher time frame poi

you need to ask yourself you know do you have to refine that four-hour poi down

to an m15 zone that is nested within it so that you make the poi smaller and

more accurate so that when price first taps into the four-hour poi

you are still sitting on your hands and waiting actually for price to push

further into the four-hour zone to then hit the refined m15 zone within it

before you even begin to look on the execution time frame on the m1 for your

entry model to execute right so you want to kind of have that in your plan if

you're happy to trade once price hits a four hour poi or if you're someone who

actually wants to wait for the refined zone within your four hour zone right so

you're looking for price to hit the m15 zone within the four-hour zone

or maybe you're not bothered about that and actually you're happy to just start

looking for for your entry model on the m1 time frame as soon as price reaches

the four hour zone so you don't actually refine the zone

any lower than that and you're happy to get involved as soon as price just hits

the four hour zone and your m1 entry model sets up

so if you're going to have a refinement rule like that where you do want to

refine it just make sure you're sure you kind of put that in here and you know

somewhere around here now the next criteria is that your poi

your higher time frame poi is drawn on a cell to buy or a buy to sell that is

then engulfed so you must specify here whether you just will use you know one

pivot candle or you know maybe two pivot candles of course if there are multiple

candles or if you will take the entire buy to sell or sell to buy range or

maybe you're just you know happy to use a little bit of discretion and you can

kind of use all of those methods and you will just pick and choose as you see fit

on a case-by-case basis um to me personally at the moment this time of

recording um i kind of use a little bit of discretion here and i kind of just i

would either use a range or i'll refine it to a candle and kind of just based on

kind of what makes most sense to me um but when you're first starting out or

just even in general some people will benefit from being very kind of

mechanical here and they they won't take the entire range and they will be

patient and they will only wait uh for price to hit the refined um candle so

they will take they will draw their zone on kind of that last cell to buy candle

rather than the entire range okay um then sort of the next thing we're

going to look at of course is that it should be a structure or a flip zone

that caused the change of character or a break of structure right they're the

only valid zones that we're interested in because those are the strongest zones

also another thing you may want to consider is that a sweep zone did it

take liquidity when it was created now some of you may want to have this as a

strict criteria for your poi to be valid other others of you may not

and you may only use sweep zones as extra confluence because you don't have

to have it but just make sure you clearly define

whether sweeping liquidity is a strict criteria or if it's just added

confluence that's kind of nice to have for you

inducement so is there liquidity to be swept in front of your poi and again you

know define whether this is a strict requirement that it must have or if it's

just an additional confidence for you and then finally is the demand zone in

the discount or is the supply zone in the premium right do you have to see

that so define whether this is a strict requirement that it must have so that

would mean you know you can only buy from demand zones and the discount um so

if you saw at n15 demand zone but it was in the m15 premium so the top half of

the range then this would mean that it is not a valid area to trade long for

you or you know maybe premium discount it's

just a nice confidence to have for you but it's not a strict requirement just

make sure that you make that clear here in your plan

so that's a pretty solid way to refine and select your higher time frame pois

that you are happy to look to build trade ideas around and to trade from

then once you've established you know such a zone on your chart and you've set

your alert for when price reaches that higher timeframe poi once your alert

goes off because prices got there now you need to follow your lower time frame

execution entry model so liquidation

again very simple you just want to see liquidity get swept as price moves in to

your higher time frame poi but you can see this on your execution time frame

right so let's say you're looking at your m15 poi and then you've dropped

down to the m1 as price is approaching the m15 poi and you see the m1 set up

some nice equals and then those equals get swept into the m15 zone that's

essentially what i mean by liquidation right so it's liquidation on your lower

time frame execution so on your execution timeframe i mean

then of course once we've seen that liquidation then the higher time frame

poi you know it needs to be mitigated right we want to trade um

the m1 entry model only if the actual m15 zone has been hit right or higher

right that our timeframe poi must be mitigated so then those orders are now

being filled and then we want to see quite an aggressive reaction on the m1

time frame so that that tells us and confirms to us that those large orders

are actually in that higher timeframe poi

and as they are being filled we're confirming that overwhelming imbalance

between supply and demand because we are seeing that aggressive move in and then

you know aggressively moving back out which essentially looks like a v shape

right this then leads to a change of character

where we see that first initial sign of a lower low after hitting a supply zone

or a higher high after hitting a demand zone

we then look for the flip zone that caused the change of character so we

need to see where that interaction took place so where either you know supply

flipped to demand or demand flip to supply that then led to that shock to

that change of character so remember this is the higher

probability way of using flip zones because you are waiting for both the

flip and the chalk rather than just the flip on its own and

entering before a change of character right so we want to see a flip and a

chalk however you know sometimes there may not

be a visible flip but there is a very clear reaction from your hard time frame

poi that then does lead to a change of character or a break of structure so in

this case what you can do you know there's no flip zone you can look to use

the extreme structure zone instead and you could look to enter on that

and now you have seen everything you need to see so you can set your limits

on the distal of the zone or maybe you always use the eq or maybe your entry is

determined by your fixed stop plus size and of course you always place your stop

behind the zone so in this bit here just make sure that

you define exactly which of those three options you were going to use for your

entry just so that you can be consistent and enter the same way every time now

make sure that you've watched the lesson on entries in the technical analysis

module if you have not done so already um because we speak about this uh yeah

in a lot of depth okay so that essentially is how you

select and refine your higher timeframe pois to look to trade from and then of

course the entry model that you look for to set up once price has reached that

higher time free p that higher timeframe poi and it has of course mitigated it

so now you are in a large position how do

you actually manage it well the first thing to consider is how are you going

to remove your initial trade risk in an effective way

are you going to use a fixed r method such as always taking 20 partial volume

at 4r running profit or maybe you're going to use a technical target and

you're going to trail your stop-loss to break even at the first m1 breaker

structure or you know something similar like that

just make sure you clearly define what you're going to do here to remove your

risk and you know it's just essentially break even your position

now for managing the rest of your trade you may want to have slightly different

options depending on whether you are trading pro or counter trend so for

example let's say you know you're trading with the m15 and or the

four-hour trend then you may want to target the next weak swing high or low

but if you're trading counter trend then you may want to be much more aggressive

and target the next m15 uh s d zone for example

or maybe there will be occasions where price is literally just stuck in a range

and you're essentially just playing ping pong so you're buying at the bottom of

the range and you're targeting the top extreme and vice versa so you'll be

selling from the top of the range and you can look to target the extreme

bottom of that range so that's quite a kind of simplified and

reasonably mechanical approach to management of course you know just use

this entire plan as a very rough starting point and you can come up with

your own ideas from here but finally we need to make sure that we

list our risk management within our plan so define a maximum loss per day you

know i think three losses well it's definitely an absolute maximum

uh which i personally think at that point you just need to shut down your

computer for the day you know go and take a walk because it's very likely

that things will quickly spiral out of control from there on so you know just

come back another day with a fresh mind on a fresh slate

on a rule like this it's really here to protect you from yourself the market

isn't going anywhere and it will be there for you tomorrow you know of

course unless it's a weekend but i mean that's a good time to just you know join

your trades see what's going wrong if you've made any mistakes and then hit

the next week with a fresh mind and of course position sizing so risk

0.5 percent betray for example and just make sure you keep that fixed due to

random distribution minimum stop loss size so let's say for

a pair like euro dollar if you are executing and entering on the m1 time

frame you know i wouldn't recommend well regardless of what time frame you go on

i would not recommend going lower than two pips when you are first starting out

the two pips is pretty ridiculous as it is so at this stage do not worry about

trying to refine any more than that just yet

then you may want to list what pair or you know which pairs you trade if you do

trade more than one you might think this is a little bit of

an odd thing to bother to put on your plan but you would honestly be so

surprised at just the amount of people who who you know maybe they don't see

many setups that day or that session like you know they would like to see on

you know their usual pair or the pairs that they normally trade for the day

they haven't taken a trade so they get bored and you know they feel the need

that they must be in a trade in order to be called a trader right so you know

they just fire up a chart of another pair that's not in their plan that they

haven't extensively tested and collected data on and they just start firing into

trades on that pair that's what gambling do right

so yeah don't be a and just define

ahead of time what your pair or your pairs are

and then finally uh session timing so you may want to define what hours you

will actively trade um you know this can be a little bit more relevant to those

who are looking to enter on the intraday time frames as you will find the best

setups they are usually around the start of the london session and the start of

new york so you know those are the times they're based on the london time zone so

7 till 10 a.m and 12 to 3 p.m and that's pretty much the london and new york and

the new york session um for those who who base out the london time i'll check

a link below um just you can compare that with a world clock

um yeah so essentially kind of putting in these

fixed hours this can just really help you to actually get away from your

screen during the day and you'd be surprised but you need to make sure that

you know you are eating you're not skipping meals um and yeah you actually

do take a break go for a walk or whatever and you're not just glued to

the screen because it's just not healthy and i can

guarantee it will have a negative effect on your training long term um if you

don't do this you know if you don't enforce some kind of routine like this

on yourself so yeah that kind of wraps up a very

sort of simplified training plan there there is obviously a lot more to it

behind each of those steps but you know i find that this is quite a good way of

summarizing all of those processes and steps in your strategy

so that a quick glance you know you can scan through this every single day

before you trade and during your training session and when you are you

know just about to consider entering a trade you can quickly just go through

this and you tick off all of these you know all of the things that meet all of

your minimum criteria and then potentially ones that are just added

confluence now what i would also recommend is that

you add a diagram and or a screenshot of a trade example

of course you know multiple examples just so that you can quickly look at

them as well and your subconscious knows exactly what it is you are waiting for

to set up to execute and that can really kind of help with patience and you know

avoiding fomo and avoiding jumping into shitty trades that you know just quite

honestly are not a part of your trade plan

right now what we're gonna do is we're gonna hop on the charts and go through

this um on an entry model diagram hopefully just to make this even clearer

okay so let's apply that sort of beginner trading system uh to our very

trusted and infamous price action model that we've been looking at pretty much

throughout the entire course so far so what i've done over here on the right

hand side is essentially just put some text here

just an even more i guess simplified version of the plan that we've just gone

through with essentially just a few keywords

for each line here now what you could do um something i would also recommend or

even when you're testing and when you're in the live market is potentially having

something like this on your charts if you are going to do it use the anchored

text so if i show you over here on the left hand side if you click on the text

box and then if you use anchor text essentially all that will do is it will

mean that the text will stay there rather than it moving like that as i'm

scrolling here right so and yeah it just can be pretty useful um you don't

necessarily have to have all of this written out or however long your plan is

you could literally just have maybe the lower time period execution or just

whatever you find relevant just to kind of yeah just to keep at the forefront of

your mind um as you're looking at the private chart at the live charts for you

know all of the obvious reasons that we've discussed before so

what i'm essentially kind of my goal here uh to do uh is essentially just go

through a few sort of areas within this price action model of of where we could

look to enter trades using this plan and kind of how um you know how i would

approach that so let's kind of look at the kind of

you know the clearest example over here uh where we essentially have the you

know the bullish four-hour trend that we are within so within the four-hour high

and the four-hour low right we're looking to catch that four-hour high low

we have come down and mitigated our four-hour demand zone the m15 this blue

line has now switched bullish right so we are now trading in line with the m15

and in line with the four hour they are both pro trend now so now we have um

we're essentially looking to catch that m15 high low right to catch the four

hour high low as well to then trade that next move up to form that four hour

higher high right so if we were kind of at that point

what we would do is we would kind of you know use this to to confirm

our higher timeframe poi that you know we are looking at to make sure that it's

valid so in this case if we were looking at this zone here right to see is this a

zone that is valid that we want to build our trade idea around then look for our

execution entry model so what's the first thing well it needs to be at least

on the m15 or higher so in this case right our medium term time frame can be

the m15 right the blue line lower time frame says the m1 higher timeframe in

this case could be the four hour right so in this case is it greater than 15

yes obviously that's our m15 time zone uh time zone time frame

is it an engulfed sell to buy or buy to sell well obviously we're not using a

candle chart here it's just a line annotation chart right so you know i

don't know if you know i can't say for certain that it's in a golf so to buy a

candle to show you but obviously you can imagine what that would look like um on

the charts now this is what i was saying before

you don't have to do this but to kind of try and remove as much discretion as

possible and try and make it very mechanical i would define here whether

you are going to be the trader that will be happy to use the entire sell to buy

or buy to sell range or if you are going to you know refine that down to to the

cat there's a single candle the pivot or even a fractal wick refinement and if

you are going to use kind of you know multiple options so sometimes

you'll use a range sometimes you use you'll use a candle or multiple candles

or sometimes you'll use just the wick try and define kind of you know when you

will do that um you know

you don't have to you can use a little bit of discretion for what looks best to

you but i would try and kind of yeah like i said be as mechanical as possible

so obviously if you're kind of just taking one candle it would probably look

something like this but if you were taking the entire range then you know

you would or that would kind of be the pivot right that's kind of like the last

cell to buy before the high breaks or technically that's you know really the

whole m15 pull back there and that would be the whole range right um which is

obviously more than valid so then as soon as price comes into that range

you're then waiting for your entry model to set up or you you know you don't care

if the entry model sets up at the top here you're waiting for price to

actually hit this your refined zone to that candle that pivot candle or that

front door refinement before you were going to look for your entry model so

that's essentially what that second line um you know kind of means there

so yeah so far we've kind of hit those

first two lines so what's the second one is that a zone that caused a change of

character or a break of structure well in this case right we were obviously

bearish in m15 we then got that first sign of a higher high we got that change

of character um so yes it did cause that did it sweep liquidity yes it took the

liquidity below this low here and now for some of you this will be a strict

requirement others of you um you know it would just be a confluence

does it have inducement um in this case on the m1 we can see here we have those

equal lows above the zone um so yes it does

have inducement in that case um and then premium and discount will be

able to put on the range on this m15 leg from the low to the high we can see that

it is in a discount right and again that will you know be dependent on you

personally whether that is just nice confluence or if you only will look for

longs if it is in the discount right and if it has to be a strict criteria so

that's essentially how we can you know um

sort of confirm and you know choose our pois for

selection so once we you know have that happy we can set an alert on our zone so

um you know remember over here you can click that plus button and then that

will hug network can be how you can add an alert for price when it then taps

into your poi so once it taps into there we're now

looking for our lower time frame execution right so what do we have

liquidation yes we've liquidated those equal lows mitigation yes we've come in

and mitigate our mitigated our zone we then want to see that aggressive move

out of that zone a kind of v-shape reversal right then what do we want to

say we want to say change of character um because we actually want to see that

the m1 is making that first high high which is what we got here right we get

that change of character so then we want to look was there a flip that led to

that change of character yes we can see that there was because grab the

paintbrush what happened price came into that supply zone the supply zone tried

to make a lower low it failed to do so because it failed to take out this low

then demand stepped in and that led to um you know this reaction failing

remember we want to see what the reaction point is the reaction had

failed so as soon as we break up above get rid of these lines as soon as we

break up above that dotted line that means that demand has now flipped right

it supplies the flip to demand demand is now control but then we also get the

change of character so we get the chalk and the flip right that's even more

higher probability um and now we're ready to look to enter and set our entry

order so where are you going to set it are you going to set it on the distal

the eq is it going to be dependent on you know if you have a fixed stop loss

right just try and make sure you kind of make that as mechanical as possible and

try and do it a consistent way every time for this example i've just said put

on a distal kind of as well just because i recommend it to you guys

you know when you're first starting out it's probably better just to take the

distal simply because you'll you'll be entered into more trades right and

that's just going to speed up your learning progression um you know just as

you're getting into more trades getting more experience

etc etc yes it won't be as refined and you won't get as high risk reward for

getting in in on the eq for example but i just think it's good to start to

potentially you know get a bit more experience and being in more trades and

yeah that pretty much leads us up now into you being triggered into the trade

ideally another thing i haven't actually listed

in here and i didn't list it on the previous

um keynote was whether or not you kind of want uh inducement before your your

entry as well which is another line that you could add in here so chalk flip then

you may want a line that says inducement again right for your execution and then

you can set your ensure order right that again will depend on whether that is

just confluence or a strict requirement that you need to see

so once you're in a trade this is where we can use uh

a combination of both the fixed r method and both technical targets so in this

case we're going to use fixed r to actually move our trade to break even

so let's say this is how we size the trade up then what we would do is work

out where 4r is and then basically we would partial out 20 of our volume if

price gets to here so that we are then that break even if price was to come

down and stop us out then with our remaining 80 percent of volume if we are

pro trend well in this case we're pro the m15 and the four hour so we're

definitely pro trend right um we can target the next m15 week high which

would be that high there right and where you could pass short out some volume and

or you can also target the four hour swing high so i haven't gone into a lot

of detail on this line i've kind of tried to keep it very very simple um

kind of two things there one is what is pro trend for you so you might

want to be very specific on what that means does that mean the four-hour chart

or does it mean the 15-minute chart or does it mean both of them and are you

gonna have you know different management rules for if it's pro

four-hour but counter m15 and when it's pro both of them right so you can see

how it can get quite confusing and it can be a lot of you know different

variables here um so that's kind of why i try to keep it reasonably simple and

the way i kind of generally approach it is just

be very simple write 20 off at 4r and then kind of allow yourself a little bit

of discretion for how you're going to pass out that remaining volume with you

know how much confidence that you have that you want to kind of swing this up

to 4 hour high or you know if if you just want to target this m15 high

because um you know something else you have to bear in mind is if you are

entering down here which is really near that higher time frame low that

four-hour low right then if you're if you're in this trade it's

pretty likely or at least you have a much higher

probability that you know if price goes up and it could come back down that

ideally you probably will protect it be protected and price won't come that low

and it should eventually take out that four hour high

compared to if you were entering say an entry model all the way up here

um you might want to be a bit more aggressive with your management because

although you are still pro 4 hour and the m15 trend entering up

here i'm at that point um you're entering much higher in the

range you're buying in more of a premium and price could still just tag you in

and then it could go down a little bit lower before it goes so

you know although this trade up here is both pro 4 hour and m15 and this trade

here is both technically you know four hours m15 they're both very different

trades in terms of you know where you are entering within the range right now

you can't have pages and pages of all of these

different variables and scenarios for management right because it's going to

get super confusing it's not realistic to be able to read that in a live market

um so that's why i kind of just be a little bit loose here

and you know that's why i said in that lesson on how to make a strategy

mechanical now actually you know that 70 to 90

is kind of the sweet spot in terms of how mechanical or discretionary your

trading strategy is because i believe kind of having that 20 or 30 percent bit

of discretion um is where you know situations like this it's useful we can

decide actually you know i've got a pretty high confidence i'm entering

really low near the higher timeframe low you know i think we really can take out

that four hour high um so therefore yes i am going to partial a little bit of

profits out as well when we hit the 1015 high but i'm going to leave leave a

decent amount of volume on to target that four hour high right whereas if

you're entering up here i'll just drag this down a bit you might go well

actually i'm buying at a premium there's not that much reward left so actually

i'm going to partial out quite heavily you know there was an m15 high here and

maybe leave like you know tiny bit of volume to try and target that four hour

high or higher so yeah hopefully that kind of makes sense um yeah that pretty

much wraps that up in terms of how you would then look to enter a sort of trade

in this area so just kind of working your way through right we we uh use this

criteria to kind of um you know confirm that that's a valid

poi for us and then we drop down to our execution time frame and we just look

for our usual kind of simplified um entry model here and obviously we were

pro 4 and 15 trend so then we can kind of use our management right in that case

so now i'm going to talk about is kind of

this section of price action over here if we were looking to trade from this

area so essentially this is kind of where this

sort of bit of text kind of comes into play which can seem a little bit

confusing at first so let's kind of take this um a bit slowly here so imagine

price is coming down into uh your your hard time frame poi so in this case this

would be our four hour poi so the first thing we need to do before we even think

about execution is we need to validate that this is a valid hard time frame poi

right that we are wanting to look to trade form or build trade ideas around

so what's the first thing is it at least the m15 or higher yes it's the four-hour

chart um is it in the goal to sell to buy buy to sell range we'll also put it

on candles but in this case um you know we've taken the whole range

now i didn't mention already this is another thing you may want to do when

you're defining how you do this step in your plan is what you

could do is go actually on the higher time frame so let's say the four-hour

chart you're always going to take the entire range right that range rather

than you know the refined candle or pivot so on the four-hour chart you may

always take the range but then on the medium-term time frame the m15 you may

always want to be a bit more refined and take the the candle so you could have a

combination of both right again it's getting a little bit confusing here we

have so many different variables but that may be something that that you want

to do or what you can also do remember is once

price comes into a four-hour range you then may have you know uh i just change

this to this you may want to wait for price to hit that refined

m15 zone within it okay before you look for entries that's another thing to

consider so when price comes into here right and

we and we've validated so actually i need to continue on this with validation

right so it's a zone that caused sorry it's an engulfed sell to buy by star

range uh yes that's the cell to buy range um is it the zone that caused a

change of character or a break of structure yes it did lead to a breaker

structure here um in this case it also was a flip zone right because it took

out this supply zone here um does it have or did it sweep

liquidity yes it took out these equal lows does it have inducement yes it has

this minor swing high just above it and is it in the premium discount yes

it's below well below this range right so it's fully in a discount so this hard

time frame zone here pretty much ticks all the boxes um it's a great zone to be

looking to trade from right of course it's running into the low as well so

that extreme zone is a great zone so as price taps into your hard time

frame zone the four hour zone in this case

uh kind of have a couple couple of options open to you if you're looking

for confirmation entries because of course you know risk entry you could

technically just enter on the four-hour zone right or on the eq but for now

we're just going to talk about confirmation entries so what you can do

is the minute that price comes down into your for our zone and your alert goes

off you could just drop down to the m1 time frame right and essentially look

for your entry model again and start going through this look for that liquid

liquidation mitigation v-shape chalk flip right and then enter right so you

can do that on the m1 as soon as price enters it

um however you know it's a little bit risky why because it's still counted the

m15 trend so the four-hour chart's bullish you are looking to get long so

it's in line with the four-hour chart the m15 is bearish at this point so that

is a little bit risky so this is kind of where i've brought in these rules here

so if we were looking to trade from this

higher timeframe poi down here it's pro the four hour right but the m15 is

counter so that would take us to this line here right so it's the pro the four

hour but it's against the m15 so this is where i've kind of put two suggestions

here if if it's the case where it's pro the four hour and the count 1015 you can

either wait for the m15 to change character first so no matter what even

though you're pro four hour you're gonna wait for the m15 to change character so

you would wait for essentially for this section of price action here and then

you look for the century model um or you can take an m1 change of

character so you don't have to wait for the m15 to switch polish first you just

look for the m1 to change character but you only do that if price has

mitigated right the four hour poi right and the reason why that's

important is because

if you're looking at price over here right and it's around this this point

here right where the orange line ends and you're looking at the trade plan and

going okay well at this point i want to look for a long

we are pro the four hour trend right because the four hours to bullish this

is the swing low this is the swing high so at this point you'll be looking to

get long we are pro the four hour trend but then what are we we are counting the

m15 trend at this point right because we're trending to the downside so that

would bring us to this line here now the reason why i've said you need i

need to either wait for an m15 change of character

um or an m1 change of character has to be in a four-hour poi because at this

point if you just look for you know that m1 change of character essentially this

entry model here around here it's very likely that you're

going to get take a lot of losses because

say this section here this price action here

this on the foreign chart is obviously a minor pullback but if we were to drop

down on the m15 and look at this this would look like a very very decent m15

zone and you know it led to a break of structure and then when price comes down

into it at this point you have to ask yourself okay we're in an m15 poi so

that's my hard time frame poi that is valid but now are you going to straight

away jump down to a low time frame execution well yes it could work because

remember a four-hour high low could form from here and it could go

four-hour high lows do not have to touch a four-hour demand zone to go remember

so what are you gonna do if price comes down to an m15 zone here well this is

where this these rules really come in handy just to help you be a little bit

more mechanical because at this point you just consult this and you go okay

well we're pro the four hour right we're bullish but we're still

counting them 15 okay so what can i do well i can only take an m1 change of

character if it's in a four hour poi well we're not we're only in m15 so

straight away that tells you don't even look at the m1 instead at this point you

have to wait for an m15 change of character right you have to wait for m15

change your character here or wait for price to enter the the four-hour poi

before you can get involved so you either wait for this high to get taken

right and then you could buy from from wherever that demand i would form or you

have to sit in your hands ignore this price action here and wait for price to

come down into the four-hour poi then once price is in the 4-hour ply

okay get rid of these lines now you can do your own change of

character so down in here you can look essentially for this entry model okay so

hopefully that makes sense and that's kind of you know you don't have to do

this and you know for me personally my training with this kind of specific

section here i don't actually at the moment at this time recording have hard

and fast rules for this um depending on whether the you know how the m15 and

four hour trends are i personally like to use a little bit of discretion here

um just kind of how the overall story looks and i don't have those super

strict rules but i thought this might be useful for some of you guys

especially when you're first starting out just to make it nice and mechanical

and this can really help to boost your strike rate because you know like i said

if you have uh i think this is really important to

cover that's why i kind of talk about this a lot so do bear with me but you

know if if price is coming down to this m15 zone it looks great it's pro the

four hour trend but the m15 still bearish and then suddenly you jump into

the first m1 entry here yes they can work out but it's gonna have a higher

probability if first you either wait for that m15 change of character right you

wait for that and 15 change your character so that or you wait for price

to hit the four hour poi first and then you can use the m1 right to look for

your entry so that can just potentially help you to boost your strike rate but

again it's just a recommendation it's not something you have to do so that's

how you can look to trade this area some of you may want to be really

conservative and just always wait for that m15 change of character right like

the very first trade that we went through so that kind of wraps that up

the only other thing i wanted to kind of talk about is in those counter for our

trades right so this kind of section here at the top

so let's say we get our four hour break of structure over here the four hour is

clearly bullish um and then we're what do we expect right when we're trying to

uh play that pullback we look for the four hour to then mitigate a you know a

higher time frame zone so either a four hour a daily or weekly whatever right it

needs to be a four hour or higher zone generally that price will then look to

to trade back from so

if the four hours bullish it's broken structure at some point we

were expecting that for our pullback and you're happy to play that pullback

you're happy to play against the four-hour trend right price then comes

into a really nice high time frame supply zone that you like

what are you gonna do when price gets into there

right because you could as soon as price gets into that just start going through

your execution on the m1 right and you could trade that but it's quite risky

okay because you're trying to trade against the four-hour bullish trend with

the first sort of m1 trend change of course that can work out and you will

get really good at this when you have a bit more experience but when you're

first starting out you can take a lot of losses if you're just trying to jump on

the m1 you know when the end when the four hour is clearly clearly still

bullish okay so this can be something that can help

you out and can help boost your strike rate a little bit so at this point we've

come into our four hour zone we're really like the zone but the four hour

is bullish so we counter the four hour now at this point if you were to get

short what is it it's counted the 4r and counter the m15 so this would tell you

nope i cannot trade i need to sit on my hands and i first need to wait for an

m15 change of character so what that means is you would sit here and then as

soon as you get that in 15 change of character okay now i can get involved

why because i'm now counter the four hour but i'm pro the m15 right because

at this point the m15 has now switched bearish

um so now you're looking to get short in

line with the bearish m15 trend so that's why it's pro m15 but counter the

four hour so at that point you can then do what you can trade an m1 change of

character of course it has to be in your in your hard time frame poi right we're

still looking to execute within hard time frame pois but at this point it's

pro the m15 because you're looking to short when the m15 has switched bearish

but it's counter the four hour chart right we're playing the four hour

pullback so this tells you now okay sweet as soon as price gets into my m15

poi i'm allowed to take that in one change of character right that m1 um you

know lower time frame execution and that's essentially you know

how it helps you to do that so hopefully that makes sense kind of the differences

there um something kind of simple like this you don't have to do it that exact

way of course you can come up with something that makes sense to you um but

i think this can be a really useful tool especially when you're starting out just

to help you that you know price is extremely bullish it comes into supply

zone you like the supply zone the m1 then you know gives you your entry model

sweep liquidity um get that change of count to the downside we get the flip

zone we pull back in you get short and then price just continues to blast up

and you're thinking well why it was in the supply zone i got my entry model

well yeah but you're trading against that hard time for momentum so of course

the m1 is going to you know change trend a lot of time um and this is where just

waiting for this waiting for that m15 change of character once you get it then

you come into the m15 now you can use your own one shot and that can just help

you a lot but yeah like i said as you get more experience you don't have to

wait for m15 changes a character there will be times where it can make sense to

just wait for that in one set up but you know you need to be a little bit more

experienced with that because it's definitely harder to do

so i think that kind of wraps up pretty much everything i want to cover

again this kind of goes for the technical

analysis lessons and everything we've gone so far like if you just watch this

all through once this is going to be quite overwhelming quite confusing

when you're not that used to it this can seem like you know like a lot of moving

parts of the strategy and you know yeah technically you are right but i promise

you when you when you when you spent the time to go through each of these

individual components of the strategy and that's why i ranted about it so much

at the start make sure you know market structure before you even think about

supply demand zones and they'll spin demands before you even think about

liquidity right so on and so forth um and then hopefully when you get to this

point this should be a little bit more kind of you know easy and fluid on your

mind as you start to look at it

but even if even if it isn't right it's going to take a little while it's going

to take some time um you seem to put in the work but also as you you know watch

the weekly content week in week out you're seeing these trades and the trade

recaps playing playing out um you'll just see the same entry model again and

again and again of course they'll always look slightly different because price

action is always unique um but yeah as each week goes by as long as you keep

absorbing the content and you keep doing the testing and work yourself i promise

you this will all become second nature where literally you know you just read

those words and you just know what they mean straight away you don't need to

kind of try and you know grasp this and think

about my counter on my pro you kind of just get a feel for it and straight away

you know how aggressive or how conservative um you want to be

i think the only other kind of point i'll make as well is remember i said

you don't really need liquidity or liquidity concepts too much right you

can literally trade extremely profitably just focusing on market structure

and supply and demand zones um so [Music]

you know you could literally especially starting out just get rid of inducement

get rid of the quality and don't even worry about that too much and literally

all you're looking for for instance is price to come into your 4-hour zone then

the m15 to then switch bullish then you have your m15 zone you wait for the m1

to come into m15 as soon as it's in m15 you wait for the m1 to switch bullish as

soon as then the m1 is bullish then you just look for your entry down here and

you get long and you try and keep it as simple as that um obviously there's a

little bit more to it with flip zones etc etc but kind of don't worry too much

about you did it sweep liquidity did it take it you know is there inducement

blah blah blah um bring that in a little bit later because that will just help

you just to boost your strike create a little bit more liquidity in my opinion

it's not the be-all and end-all and mainly because it's very very

subjective at times like sometimes you'll get perfect nice equal lows and

when you see that boom really high probability i love it as well but

sometimes like here right say this m1 sweep zone it can be very subtle whether

or not it took liquidity liquidity and sometimes what you might see is price

just goes up like this it has a nice you know single pullback and then it goes up

like this and you're thinking well oh there's no liquidity sweeper maybe i

don't want to take this zone and then it plays out perfectly

and you missed it but then if you were to look on maybe the 15 second well

actually you can see it took liquidity and then you know it gets very

subjective of you know whether it was a sweep zone or not um and that's kind of

why i would personally say don't worry too much about liquidity at this point

right it's something you can bring in um a little bit later

um so yeah that pretty much wraps up i think okay final final point i'll make

um is yeah hopefully i kind of made this clear

already but you know obviously the way i've been showing you guys with this is

kind of you know really focusing on those three time frames the four-hour

chart the m15 and the m1 but really what's important is just that you have

kind of that clear higher time frame that clear medium time frame and that

clear lower time frame and that can be anything that you want it to be for you

so for instance if you want to be um you know a bit more kind of on a higher time

frames right because it's just not realistic for you to be on the m1 or you

know you find a bit hard for your psychology it's a bit too quick or

whatever your higher time frame could be the

daily your medium timeframe could be the four hour and your execution time frame

could be the m15 or you could even use the m5 for your execution time frame

because that's still kind of you know intraday day trading but she's just a

little bit slower than the m1 and actually it may give you a lot less full

signals than the m1 the m5 actually can be a

really good execution time frame and something i've enjoyed trading in the

past but just make sure of course those three

time frames are you know they have a decent gap between them that makes sense

right so you wouldn't just want to use you know the four minute the three

minute and two minute hopefully that goes without saying it's

you know stupid if you do that maybe you can make it work i don't know but yeah

that's why i think for me the four hour the m15 and the m1 works really really

well or you would do like the daily the 4r and the m15 so you kind of just need

to have those real three key higher time frames or those keys sorry time frames

um that you focus on um

and then of course you know i don't just look at the four hours of the m15 and on

the m1 i do also have the daily and the weekly in there they are a part of what

i consider to be the higher time frames um but you know if i could only look at

three it's the four hour the m15 and then one that kind of has the majority

of my focus um it's the m15 and the four hour which i'm really paying attention

to structure and then once i have those zones right and my structure lined up

then i that's the last thing i do is jump down to the m1 um or sometimes the

second time frame and that's where i look for my execution model so i'll

leave that there before i kind of rant on any longer hopefully that makes sense

make sure you watch this video as many times as you need to

draw your own diagrams draw your own entry models um yeah and just make sure

it makes sense in your head hopefully you know you guys have taken

some value from this and this is kind of a useful starting point for you to take

away uh and kind of craft your plan around hopefully you'll have some kind

of ideas of of how you like to trade before you even test this stuff right um

like i said as well get rid of liquidity for now if it helps to keep things

really simple that's definitely something i would advise and then as you

start to go test this you know we're gonna learn the next module exactly how

to do this then you start to trade it you can slowly kind of tweak and change

your rules but yeah i just know how how um

just how overwhelming it can be first things first right um you understand the

benefits of making something unique to you but yeah when you're first starting

out you just want someone to kind of hand you that starting point right just

so you have something to work with rather than kind of trying to come up

with something from scratch because i know that can be a bit of frustrating

and and can you know waste a bit of time so yeah hopefully that makes sense as

always if you have any questions um don't hesitate to reach out to me or

post in the community or even post a question underneath this video um as

obviously posting videos sorry posting questions under each of the specific

videos that you have a question about that is going to really help other

people that probably are also having the same questions as you and they can

quickly look in the comments below and it can you know save them time having to

go and ask that same question so i'll leave that there hope

you guys enjoyed that and i will see you in the next one