New Level Set up Learn and Trade Forex

Summary

In this Forex trading tutorial, the trader introduces their proprietary 'New Level Setup,' a swing trading strategy focused on identifying key support levels, confirming market trends through higher timeframes, and waiting for price action confirmation before entering trades. The strategy emphasizes risk management, using the 4-hour chart to refine stop losses and maximize potential gains. The trader discusses their preference for swing trading over day trading due to lifestyle considerations, and offers additional resources for viewers seeking further education, including one-on-one coaching and an ebook on using ChatGPT to trade Forex.

Takeaways

• 😀 The 'New Level' strategy is a long-term swing trading approach developed by the speaker, based on key support and resistance levels.
• 😀 Price action often moves in a range, bouncing between highs and lows; understanding this range helps identify potential breakout points.
• 😀 A higher timeframe (weekly or monthly) should be used to confirm the overall trend and avoid false signals from smaller timeframes.
• 😀 The speaker emphasizes waiting for confirmation before entering a trade—never rush into a trade without clear signals of market reversal.
• 😀 A bullish engulfing candle on the daily timeframe can signal a reversal and provide a solid entry point for long trades.
• 😀 The speaker advises against trying to catch the very bottom of a move. Market makers may trigger stop orders before pushing the price in the intended direction.
• 😀 Identifying the low and high of the week is crucial for successful trading with the New Level strategy, as these levels serve as key reference points.
• 😀 The first bullish move following a bearish trend is critical in confirming a market reversal and provides a higher-probability entry point.
• 😀 The speaker highlights the importance of managing stop losses effectively—tightening them after confirming the trend helps maximize profit potential.
• 😀 A 50-61.8% retracement is a common price movement that the speaker expects, which is often followed by a continuation in the original direction of the trend.
• 😀 The speaker prefers swing trading over day trading due to its alignment with a balanced lifestyle, especially for those with a 9-to-5 job.

Q & A

What is the 'New Level' strategy mentioned in the video?

The 'New Level' strategy is a swing trading approach developed by the trader, focusing on identifying key support and resistance levels. It aims to trade from these levels once price action confirms a trend reversal.

Why does the trader emphasize waiting for confirmation before entering a trade?

The trader emphasizes waiting for confirmation to avoid false signals and market manipulation. By waiting for a confirmation candle, such as an engulfing candle, the trader ensures that the market has truly reversed direction before entering a position.

How does the trader determine if a price range is valid for trading?

The trader looks at historical support and resistance levels from multiple months (October, September, etc.) to identify if price has repeatedly bounced off these levels. A valid range is confirmed if price has consistently reversed at these points over a period of time.

What role do higher time frames play in the trader's analysis?

Higher time frames, such as the weekly or monthly charts, are used to identify the overall market trend. The trader uses these to confirm if the broader market is trending up or down before entering a trade, providing a higher probability of success.

What is the significance of the engulfing candle in the trader's strategy?

The engulfing candle is a key indicator for confirming a trend reversal. When the price shows a large bullish candle that engulfs the previous bearish candle, it signals the potential for a shift in market direction, prompting the trader to enter a long position.

Why does the trader avoid entering trades at the 'bottom' of a move?

The trader avoids entering at the bottom because market makers may manipulate prices to hit stop-loss orders before pushing the price in the anticipated direction. By waiting for confirmation, the trader ensures the move is more likely to be sustainable.

How does the trader manage stop losses and take profits in the 'New Level' strategy?

The trader emphasizes focusing on the entry and stop loss first. Once the position is confirmed, the stop loss is set closely to minimize risk. Take profit is considered later, usually when the market reaches significant resistance or price levels.

What does the trader mean by 'retracement' and how does it affect trading decisions?

A retracement refers to a temporary pullback in price before the market continues in the original trend. The trader expects retracements of around 50% to 61.8% of the previous move, which provides an opportunity to enter a position with a favorable risk-to-reward ratio.

What is the trader's view on day trading versus swing trading?

The trader prefers swing trading over day trading because it allows for more flexibility, particularly for those with busy lifestyles (like working a 9-to-5 job). Swing trading relies on longer-term trends and provides more time to make informed decisions.

How can the trader's strategy help improve trading success for beginners?

By focusing on clear support and resistance levels, waiting for confirmation signals like engulfing candles, and using higher time frames for trend confirmation, beginners can develop a disciplined and structured approach to trading with higher probability setups.