BEST US30 STRATEGY IN 2024

Summary

In 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.