BEST US30 STRATEGY IN 2024
Summary
TLDRIn this trading strategy video, the presenter explains a detailed approach to identifying potential trades on the New York Stock Exchange (NYSE), focusing on specific time zones and market movements. They emphasize the importance of recognizing market structure breaks, fair value gaps, and liquidity points for take-profit targets. The video offers step-by-step guidance on setting up trades with a 1:2 risk-reward ratio, highlighting the need for patience and proper risk management for successful trading.
Takeaways
- 🕒 Set your trading platform to the correct time zone, UTC-4 or UTC-5, depending on the season, for New York trading strategy.
- 📊 Prefer using the US3 chart for this strategy, but it can be backtested on other currencies or markets.
- 🚫 Remember, not every day will present a trading setup; patience is key and avoid forcing trades.
- 🔍 Identify market structure breaks and fair value gaps as potential entry points for trades.
- 🎯 Use liquidity points as take-profit levels after a market structure break.
- 📉 Look for the market to enter the fair value gap and anticipate price movements to the downside.
- 📈 After a market structure break, anticipate buying opportunities when the market sweeps sell-side liquidity.
- 📊 Mark highest and lowest points as buy and sell side liquidity levels to anticipate market movements.
- 📍 Wait for the market to sweep either buy or sell side liquidity to confirm the direction of the next move.
- 🔑 Look for confluences like auto blocks next to fair value gaps for high-probability trade setups.
- 💡 A fair value gap is a gap between three consecutive candles, not necessarily with wicks, and can signal a price fill opportunity.
Q & A
What is the main topic of the video?
-The main topic of the video is explaining a trading strategy, specifically for the forex market, focusing on identifying trading setups and managing risk.
Why is the time zone set to UTC minus 4 or 5 in the trading strategy?
-The time zone is set to UTC minus 4 or 5 to align with the New York trading session, which is important for the strategy's effectiveness, as it may vary depending on the market's liquidity and activity.
What does the speaker suggest marking on the trading chart?
-The speaker suggests marking 10 a.m. and 11 a.m. as key times to watch for potential trading opportunities within the strategy's framework.
What is a 'break of structure' in the context of the trading strategy?
-A 'break of structure' refers to a situation where the market price moves past a previously established pattern or level, indicating a potential shift in the market trend.
What is meant by 'fair value gap' in the trading strategy?
-A 'fair value gap' is a gap between three consecutive candles on a trading chart, which can be used as a reference point for potential entry or exit points in a trade.
Why is it important to target the 'lowest hanging fruit' in a trade?
-Targeting the 'lowest hanging fruit' means aiming for the most accessible profit point that is nearest to the current market price, making it a realistic and achievable target within the trade.
What is the significance of 'liquidity points' in the trading strategy?
-Liquidity points are areas on the chart where there is a concentration of trading activity, indicated by equal highs or lows. They serve as potential take-profit or stop-loss levels in the strategy.
What does the speaker mean by 'sweeping liquidity'?
-'sweeping liquidity' refers to the market price moving past a previously identified liquidity point, which can signal a potential change in market direction or momentum.
What is the recommended risk-to-reward ratio for the trades in this strategy?
-The recommended risk-to-reward ratio for the trades in this strategy is 1:2, which means for every unit of risk, the trader aims to make two units of profit.
Why is patience important in this trading strategy?
-Patience is important because the market does not always move in a straight line, and waiting for the right setup or confirmation can increase the chances of a successful trade.
What is an 'auto block' and how is it used in the strategy?
-An 'auto block' is a candlestick pattern that precedes an impulsive move in the market. It is used in the strategy to identify potential entry points for trades, especially when combined with a fair value gap.
Outlines
📈 Trading Strategy Introduction
The speaker begins by introducing a trading strategy tailored for the New York time zone, emphasizing the importance of setting the correct time zone for accuracy. They suggest using UTC-4 or UTC-5 depending on the season and prefer using the US3 time zone for this strategy. The speaker advises patience as not every day will present a suitable trading setup. They highlight the significance of identifying market structure breaks and fair value gaps as key elements of the strategy, using them to determine entry and exit points for trades.
📉 Liquidity Points and Trade Execution
In this paragraph, the speaker delves into the specifics of identifying liquidity points as potential take-profit levels. They discuss the importance of marking high and low points on the chart and using these as targets for trades. The speaker illustrates how to spot market structure shifts and fair value gaps, and how these can be used to anticipate market movements. They also explain the concept of 'auto blocks' and 'fair value gaps' as indicators for potential trades, emphasizing the need for patience and proper risk management to maximize profitability.
🚀 Advanced Trading Techniques and Risk Management
The speaker concludes by discussing advanced trading techniques, such as identifying auto blocks next to fair value gaps for high-probability trades. They stress the importance of having a clear exit strategy and setting stop losses to manage risk effectively. The speaker also touches on the psychological aspect of trading, highlighting the need for patience and discipline. They share their personal approach to trading, focusing on quick trades with a 1:2 risk-reward ratio, and express their intention to continue sharing insights and daily trades in future videos.
Mindmap
Keywords
💡Strategy
💡Time Zone
💡Market Structure
💡Fair Value Gap
💡Liquidity
💡Break of Structure
💡Risk-Reward Ratio
💡Stop Loss
💡Confluence
💡Auto Block
💡Candlestick
💡Volatility
Highlights
Introduction to the trading strategy with emphasis on understanding setups and not trading without a clear setup.
Setting the correct time zone to UTC-4 or UTC-5 depending on the season for accurate trading.
Preference for using the US3 time zone for this particular trading strategy.
Marking 10 a.m. and 11 a.m. as key times for potential trading opportunities.
Identifying a break in market structure and a fair value gap as potential entry points.
Using liquidity points as take-profit levels after a market structure break.
The importance of targeting the closest liquidity point for realistic profit expectations.
Explanation of how to take a short position within a specific frame and the rationale behind it.
The concept of market sweeping liquidity and its implications for future price direction.
Marking high and low points as buy and sell side liquidity for anticipating market moves.
Waiting for the market to sweep either buy or sell side liquidity to confirm a trading direction.
Taking trades based on the market's reaction to liquidity points and the use of a 1:2 risk-reward ratio.
The significance of a bullish candle closing within a certain frame as an entry signal for a long position.
Setting a stop loss and take profit based on the identified liquidity points.
Taking multiple trades within the same trading session based on market behavior and structure.
The importance of patience in trading and waiting for the market to fill a fair value gap after an auto block.
Using a combination of an auto block and a fair value gap as a strong signal for a trade entry.
Targeting quick trades based on market volatility and the potential for immediate profit.
The strategy's effectiveness demonstrated through two example trades and the importance of proper risk management.
Commitment to sharing daily trades and insights to help traders understand decision-making processes.
Transcripts
hey what's up guys so in this video I'm
going to be just explaining on my
strategy some of yall said like I should
go through what you guys don't really
understand go step by step what you
should be looking for exactly right so
here we're looking at new state here as
you guys can see so with the strategy
first things first what we do is um we
have to make sure that on our time zone
it's UTC minus 4 you have to put it on
New York right sometimes it's UTC minus
5 depending on the season and guys um
this I preer us3 I prefer us3 with this
strategy so you can back test it on
other currencies or whatever but I think
I got profitability through um us3 and
remember guys uh it's not every day that
you're going to find a setup if you
don't get a setup there's no way you
have to trade so yeah just keep that in
mind so right there you're going to Mark
firstly your 10 a.m. as you can see
right there you're marking your 10 a.m.
and your 11 a.m. and 11 a.m. right there
when the Market reaches to a point where
by like it's right here and we're
expecting it to go inside for like
trades first thing a person might
identify is that wait there's a break of
structure right there right and uh
there's a fair value G right there so
looking back there are certain low
points which they can use as their uh
liquidity points like as their take
profit points right there after that
break of St that market structure shift
right there they're going to be
expecting price to go inside the fair
value Gap right there they're expecting
it to be like this and go into the
downside right and maybe targeting this
low point right here targeting this low
point right here right that can happen
and I think it happened here but we have
to look at the bigger picture right so
with this alone let me show you what
happens the market gets inside the yes
right there mhm okay it's going way too
fast relax bro relax okay let me just
put it like this yeah let me just put it
like that so you can take this short
cell within that frame right there and
guys remember you have to like Target
the like the lowest hanging FL which is
like near to like where the market is
cuz being realistic the market reaching
there and reaching here if you have
something that you can reach which is
near whether you have to go for
something which is lower you see the
best approach is to Target something
which is there like where the market is
you see so like yeah that's why I
decided to like take this one right here
cuz as you can see we saw a breaker
structure right there Mar structure
shift right there the market went inside
uh that fa Gap then we targeted the
downside which is right there right now
but in this Frame we can expect to take
more than one trade by that I mean once
you see that break of structure then you
enter for a sell right there then you go
for the lowest point which is right
there now you're already but what can we
expect now we have that narrative okay
the market took my take profit right but
with the strategy itself we have to be
checking on where like the market swept
liquidity right so when the market is
moving just like this we're going to be
targeting we going to mark your highest
point which is right there that's your
buy side liquidity you're going to mark
your sell side liquidity right now so
now we are waiting for the market to
sweep either of the buy side and the
sell side liquidity right once the
market sweeps the sell side liquidity we
know it has to buy right cuz it's
basically taking out uh Sellers and
going for buyers but if it goes for the
buy side liquidity we know it's taking
out buyers right here and going to sell
now let's see what happens when the
market enters our P the time frame that
we're basically focusing on which is
from 10 to 11: right and on the time
frame again it's 5 minute you can go to
five three and one it's not necessarily
you have to focus on 5 minutes only okay
you have to remember that let me just
delete this fair value Gap since I
showed you that you can take that trade
that we started with and yeah let's go
to this one so with this one we're
waiting for Market to break either the
sell side
liquidity right there or as a buy side
liquidity see right there so let's see
what it does first things first the
market went inside right as I said right
now the market swept the sell side
liquidity now what we're looking for is
buying right now we're looking for
buying right so as soon as the market
touches or ships like that sell side
liquidity again with that liquidity
which is a buildup of like equal lows
right there equal lows by equal lows I
mean um let me just draw a line This
wigs that are basically the say like
they're in the same level they're in the
same level that is a high liquidity
point they have been swept again with
that sell side liquidity that we
basically targeting the most that's
giving us the clear direction right so
if you can look back you can see that
there are other points of liquidity
right there right so the market once it
sweeps the sell side liquidity what we
do since we're anticipating for a buy
we're going to look for a candle close
to the upside which has to be a bullish
candle
right now right there on that candle
this candle right here the candle that
closed inside here it closed as a
bullish candle right so that gives us a
clear idea of yeah you're going to the
upside now what are we targeting from
here since this candle Clos as bullish
we're targeting the buy side liquidity
right so you're going to pull out your
twool and put a long position you're
going to be entering from there putting
your stop loss on that low right there
and targeting the high is that iide
liquidity the trade itself as you can
see is a 1 is to two RIS reward ratio
which is perfect which is perfect one is
to two risk World ratio trades are
actually perfect and it's what I suggest
to people mostly since it has a high win
rate and if you lose if you use proper
risk management actually you're going to
lose less you put your stop loss below
um that candle and we targeting that
high which is right there let's see what
happens boom straight the market doesn't
even um Cal down or retest whatever it
goes up takes the buy side liquidity
just like that actually right now we
have taken two trades right youve taking
two trades I think it's enough to call
it a day but there are some people out
there who are very very eager to get
this money bro so now for someone who
actually wants to trade the last move
since we have like um we had made this
move inside you can either like I've got
that sell to the downside or this buy to
the upside but for a person who wants to
Target another trade since the market
has taken um the buy side liquidity now
we're expecting it to go down since as
it took out the sside liquidity we
expect to go up right so now we're
expecting it to go to the downside since
it took out the buy side liquidity now
now in this one we're going to see how
the market plays out since it took the
buy side liquidity now let's see what
happens what moves does it create now
from that move to the downside right
there we know that the market is really
going down since there was a market
structure shift right here that previous
low that was made was broken was broken
if you can clearly see this you can go
to the 3 minute time frame just to have
a look of what I'm talking about you can
see that low right there was created and
it was
broken now since the market broke
structure here we are looking for
confluences what's what our our
confluences now we are looking for a aut
block and we're looking for a fair value
Gap now for me I personally look for an
auto block which is next to a fair value
Gap that's how I know my trade is going
to be a bang so as you can see right
there as you can see um that candle the
last candle before an impulsive move to
the downside that's your auto block
right there that's your order
block right there that's your order
block that candle the black one before
an impulsive move to the downside now
what's next to that auto block as you
can see we are spotting a fair value Gap
now a fair value Gap people usually say
a value Gap like there has to be a Weck
a week by a we I mean this long thingy
right here most people confuse it by
saying that there's going to be a wick
there has to be like a wick on that
candle which we drw draw from it to this
week of this cand right it's not really
like that guys you can like a fair value
Gap is just basically a gap between
three consecutive candles right so even
though there's no Wick right there this
is still a fair value Gap so you can see
right here from that candle to the from
this candle right here to that candle
you guys you can see one two three three
candles three consecutive candles right
there so now what we're doing is we're
expecting prize to fill this F really
gap which is next to an aut block which
is like enough for me to say yeah I'm
taking this trade this is a banger trade
if it doesn't go my way it doesn't go my
way that's how the market works it
doesn't move in a straight line so we're
going to be expecting price to come
inside here to come inside here and
what's our Target the lower the lowest
low right there which is right there
we're targeting for quick you see quick
things I'm not that passionate enough to
hold a trade for the whole day so me
targeting stuff like this is actually it
puts me in a good scenario right so yeah
you're just basically going to take a
short position from there we're
targeting that low we put our stop loss
on that high now the thing is I don't
usually put it on that Wick I put it
higher just to give it a little
breathing space right even here I should
have put it like a little bit lower just
to give it a little breathing space in
case it wants to come in retest here so
yeah put it give it a little breathing
space which is right there now we are
targeting the low there which is right
right there that's our take profit which
is right there now let's see how it
plays
out now the game here is patience now
the game is patience the tra the trade
is triggered right
there let me just extend
this and just like that your TP has been
hit your TP has been hit now this is one
of the most powerful uh strategies I
know it f the fa but went ahead and
filled the other block then went to the
downside just like that now with these
two trades with these two trades the
difference is volatility is more here
the volatility is more yeah here you
have to be patient enough but here
there's too much volatility in an
instant the trade is playing out in an
instant it doesn't consolidate or do
stuff of higher highs lower highs I mean
and lower lows lower highs lower lows
lower highs so that's an indication that
the market is going to a downside right
and yeah that's my strategy on new 30
and um I hope this really helps you guys
and I'm really going to like um make
more videos on this like do like trades
each and every single day that I take
why did I take this kind of Trad what
happened with this kind of Trades you
see stuff like that so yeah let's just
end it here and I'll see you on the next
one peace out sh
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