A ÚNICA Estratégia de DayTrading que Você Vai PRECISAR! 🤯

Summary

This video presents a powerful three-step trading strategy that has been tested and proven to be profitable over the long term. It focuses on identifying trends through price action, validating price points based on higher highs and higher lows, and using demand and supply zones for entry points. The final step emphasizes ensuring a favorable risk-reward ratio of at least 2.5:1 for every trade. By applying these principles, traders can make calculated decisions and significantly improve their chances of success in the financial markets, avoiding reliance on complex indicators and patterns.

Takeaways

• 😀 The strategy involves a three-step formula that has been tested thousands of times and is profitable in the long run, focusing on price action without indicators or patterns.
• 😀 The first step is understanding market structure, particularly identifying whether the market is in an uptrend or downtrend by observing higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend).
• 😀 A common mistake is assuming that a market reversal happens when a price breaks a low, but a valid low is only confirmed when it breaks a previous high.
• 😀 To confirm an uptrend, a valid low must break a previous high, and you should only consider buying in an uptrend, not selling.
• 😀 When the price breaks a previous high, it confirms the trend is still up, and if it breaks a low, the trend could change to down. This is crucial for making accurate trades.
• 😀 The second step involves identifying demand and supply zones in the market. Demand zones occur in uptrends, and supply zones occur in downtrends.
• 😀 Buy in demand zones and sell in supply zones. A demand zone is validated when there’s a sharp move upward from a specific consolidation area.
• 😀 To identify a demand zone, mark the candle before the impulsive move, drawing a rectangle from its low to its high to define the entry zone.
• 😀 In an uptrend, avoid considering supply zones, and wait for the price to revisit a demand zone to enter a trade.
• 😀 The third step is ensuring a favorable risk-to-reward ratio. A good trade should have a risk-to-reward ratio of at least 2.5:1, meaning for every $1 risked, $2.5 should be gained.
• 😀 The strategy is highly effective because it aligns with the trend direction, improving the likelihood of profitable trades, and the simple risk-to-reward rule increases profitability by filtering out bad setups.

Q & A

What is the first step in the strategy mentioned in the video?

The first step involves identifying the market structure, specifically determining whether the market is in an uptrend or downtrend by analyzing the highs and lows of the price action.

Why is identifying the trend so important in this strategy?

Identifying the trend is crucial because if you misidentify the trend, even slightly, it can ruin the entire strategy. The trend dictates whether you should be looking for buying or selling opportunities.

What is a common mistake that traders make when a price breaks a low?

A common mistake is thinking that the price is reversing into a downtrend after breaking a low. However, the strategy only validates a downtrend if the price breaks a previous high. If the low is broken without breaking the previous high, the trend remains up.

What is the key rule for validating a low in an uptrend?

The key rule is that for a low to be validated in an uptrend, the price must break a previous high. If the price does not break the previous high, the trend remains bullish.

What are demand and supply zones, and how are they used in this strategy?

Demand zones are areas where the price tends to rise, typically found in an uptrend. Supply zones are areas where the price tends to fall, typically found in a downtrend. The strategy suggests buying in demand zones and selling in supply zones, as these areas have a high probability of price reversal.

How can traders identify demand zones on a chart?

Demand zones can be identified by finding areas of consolidation or sideways price movement before a strong upward price movement. The rectangle tool can be used to mark these areas, from the low to the high of the candle prior to the price surge.

What is the proper placement for a stop loss when trading in demand zones?

The stop loss should be placed just below the demand zone. This helps protect the trade in case the price moves against the trader's position.

How do traders set their take profit targets in this strategy?

Take profit targets are typically set at the most recent highs for long trades or most recent lows for short trades, ensuring that the target is aligned with the trend.

What role does risk-to-reward ratio play in this strategy?

The risk-to-reward ratio is vital in ensuring that the potential reward outweighs the risk. The strategy only allows trades with a risk-to-reward ratio of 2.5:1 or higher to ensure profitability in the long run.

What should traders do if the risk-to-reward ratio is less than 2.5:1?

If the risk-to-reward ratio is below 2.5:1, traders should not enter the trade, even if it meets the other criteria. The goal is to ensure that the potential reward justifies the risk taken.