This One Candle Can Change Your Life

Summary

This video script teaches a candlestick strategy for trading. It advises buying below the market open if bullish and selling above if bearish. Traders should identify the open and close of a daily candle, then look for a smaller timeframe. For a bullish strategy, enter when price falls below the daily open, respects structure, and retraces to a fair value gap. Set take profit at market close and stop loss below recent low for a winning trade.

Takeaways

• 📈 **Market Sentiment**: Determine your overall bullish or bearish stance before trading.
• 🌐 **Time Frame Selection**: Start with the daily time frame to identify the overall trend.
• 📊 **Candle Analysis**: Mark the open and close of the daily candlestick to understand price action.
• 🟢 **Bullish Entry**: For a bullish stance, look to buy when the price drops below the daily open (green line).
• 🔴 **Bearish Entry**: For a bearish stance, aim to sell when the price rises above the daily close (red line).
• 📉 **Price Break**: Look for a break in price structure as a signal to enter a trade.
• 🔄 **Fair Value Gap (FVG)**: Wait for the price to retrace back to the FVG before entering a trade.
• 💹 **Trade Execution**: Enter the trade at the retracement to the FVG.
• 🎯 **Take Profit**: Set your take profit at the market close to capitalize on the expected move.
• 🛑 **Stop Loss**: Set a stop loss below the recent low to manage risk.
• 🏆 **Winning Strategy**: Follow these steps for a potential winning trade setup.

Q & A

What is the main purpose of the candle strategy described in the script?

The candle strategy is used to determine bullish or bearish market conditions and enter trades based on price movements relative to the market open and close.

What should you do if you are overall bullish according to the script?

If you are overall bullish, you should buy below the market open, looking for price to dip below the daily candle's open before entering a trade.

What should you do if you are overall bearish?

If you are overall bearish, you should sell above the market open, taking advantage of price movements that rise above the daily candle's open.

How does the script suggest using the daily time frame?

The script suggests going to the daily time frame to identify the open and close of the candle, which will help determine where to set entry points and profit targets.

Why is the open of the daily candle important in this strategy?

The open of the daily candle serves as a reference point for entering trades. If price moves below the open and you are bullish, it signals a potential buy opportunity.

What does the script mean by 'sell side liquidity'?

Sell side liquidity refers to a situation where price moves downwards, typically below the market open, triggering sell orders and providing an opportunity to enter a bullish trade.

What is a 'break of structure' in the context of this trading strategy?

A break of structure refers to a significant price movement that breaks previous support or resistance levels, confirming a change in market direction.

What is a 'fair value gap' (fvg) and how is it used in this strategy?

A fair value gap is an imbalance in price where it moves quickly, creating a gap between candlesticks. The strategy suggests waiting for price to retrace back to the fvg before entering a trade.

Where should you set your take profit level according to the script?

You should set your take profit at the daily candle's close, which serves as a target for where the price is likely to go based on previous price movements.

Where should you set your stop loss?

You should set your stop loss below the recent low to minimize risk in case the market moves against your trade.