Mastering The THREE DAY MARKET CYCLE (Stacey Burke Day Trading Strategy)
Summary
TLDRThis video script offers traders a comprehensive guide to high-performance trading, focusing on developing a winning mindset and establishing effective daily routines. It introduces the 'Four-Step Method to High Performance Trading' and the 'Seven-Step Daily Routine for High Performance Traders', both available as free downloads. The content emphasizes the importance of understanding market timing, leveraging various trading setups, and capitalizing on range expansion opportunities. It also discusses the significance of avoiding major news events and using tools like Forex Factory for economic news. The speaker, Trader Stacy Burke, provides insights on trading strategies, including the 'Playbook', and reviews concepts like opening range, initial balance, and three-day setups to enhance traders' skills and confidence in executing trades.
Takeaways
- 📈 The 'Four-Step Method to High Performance Trading' and 'Seven-Step Daily Routine for High Performance Traders' are available as free resources to help traders develop mindset and routines for increased confidence and execution in live trading environments.
- 🎯 Traders should focus on developing habits and discipline through daily routines and mindset training to achieve a winning mentality.
- 🌐 The importance of understanding different time frames and the three levels that every trader has each day when they come to the markets is highlighted, emphasizing the significance of the opening range and initial balance.
- 📊 The significance of avoiding major news events when trading is mentioned, as these events can cause significant market volatility and affect trading strategies.
- 📚 The concept of 'Day Zero setups' is introduced, which involves identifying potential range expansion opportunities based on peak formations and consolidation patterns.
- 📈 Traders are advised to look for 'asymmetrical risk-reward' opportunities where they can risk a smaller amount and potentially gain a larger return, such as risking 15-20 pips and targeting 50-300 pips.
- 🗓 The video emphasizes the importance of timing in trading, including the start of a new month, which is a significant timing cycle that traders should be aware of.
- 🌟 The speaker, Trader Stacy Burke, provides insights into various trading scenarios and strategies, including parabolic trend trades, three-session setups, and day zero setups, to help traders identify high-probability trade setups.
- 📉 The script discusses the use of the 'Universal EMA' from The Playbook to target asymmetrical risk-reward and the importance of understanding market behavior in relation to this indicator.
- 🚫 The importance of not trading before or during major news events is reiterated to avoid high volatility and unpredictable market movements.
- 📝 The closing price is identified as a crucial reference point for traders, and its role in establishing market boundaries and potential trade opportunities is explained.
Q & A
What are the two free downloads mentioned in the video for traders to enhance their performance?
-The two free downloads mentioned are 'The Four-Step Method to High Performance Trading' and 'The Seven-Step Daily Routine for High Performance Traders'.
What is the main focus of the 'Four-Step Method for High Performance Trading'?
-The 'Four-Step Method for High Performance Trading' focuses on developing the mindset and routines to increase traders' confidence and their ability to execute their trading edge in a live trading environment.
How does the 'Seven-Step Daily Routine for High Performance Traders' help traders?
-The 'Seven-Step Daily Routine for High Performance Traders' is an audio program designed to help traders bulletproof their day-to-day habits and discipline, and develop a winning mindset.
What is the significance of the opening range, initial balance, and news calendar in the trading playbook?
-The opening range, initial balance, and news calendar are crucial elements in the trading playbook as they help traders understand market behavior, anticipate price movements, and avoid major news events that could impact trading strategies.
What is a 'day Zero setup' in the context of the trading playbook?
-A 'day Zero setup' refers to an opportunity where a box or peak formation forms, indicating a potential range expansion opportunity. It is a measured distance of a larger template, targeting asymmetrical risk-reward.
What does the speaker mean by 'asymmetrical risk-reward' in trading?
-Asymmetrical risk-reward in trading means that the potential profit from a trade is significantly larger than the potential loss. For example, risking 15 to 20 pips to target 50, 100, or even 300 pips as a profit.
What is the importance of the 'first Green Day' and 'first red day' in the trading playbook?
-The 'first Green Day' and 'first red day' are significant because they can indicate potential breakouts or range expansions, providing traders with opportunities to enter the market with a favorable risk-reward setup.
How do traders use the concept of 'three-day setups' in their trading strategies?
-Traders use 'three-day setups' to identify patterns that may lead to a range expansion or a significant market move. These setups involve analyzing the market's behavior over three consecutive days to predict future movements.
What is the significance of the 'closing price level' in the context of the trading playbook?
-The 'closing price level' is significant as it serves as a reference point for traders at the start of a new trading week. It helps in establishing the opening range and can influence the market's behavior as it auctions back and forth during the week.
Why is it important for traders to avoid major red news events according to the video?
-It is important for traders to avoid major red news events because these events can cause significant market volatility and unexpected price movements, which can lead to increased risk and potential losses.
What does the speaker mean by 'parabolic trend trades' and 'parabolic short squeezes'?
-Parabolic trend trades and parabolic short squeezes refer to trading opportunities that occur during rapid price movements or 'parabolic' rises or falls in the market. These can present high-reward trading setups for those who can accurately predict and time their trades.
How do traders use the concept of 'low hanging fruit' in the trading playbook?
-'Low hanging fruit' in the trading playbook refers to easy and relatively low-risk trading opportunities that present themselves, often after major news events or market movements, allowing traders to capitalize with minimal stress.
What is the significance of the 'first bar trade' on major red news days?
-The 'first bar trade' on major red news days is significant because it can trap volume and create a momentum opportunity. Traders can use this to their advantage by entering the market right after the news release, targeting quick profits.
What does the speaker emphasize about the importance of timing in trading?
-The speaker emphasizes the importance of timing in trading by highlighting significant timing cycles such as the beginning of a new month, new trading week, or even the start of a new 15-minute candle. These timing cycles can provide crucial entry and exit points for trades.
How can traders benefit from understanding the larger market templates and geometrical structures?
-Traders can benefit from understanding larger market templates and geometrical structures by identifying potential range expansion opportunities and asymmetrical risk-reward setups. This allows them to make more informed trading decisions and target significant profit opportunities.
What is the purpose of the 'Universal EMA' mentioned in the video?
-The 'Universal EMA' or Exponential Moving Average is a technical indicator used in trading to smooth out price data and highlight trends. It helps traders identify overbought or oversold conditions and potential reversal points in the market.
Why is it important for traders to focus on trading setups rather than chasing price action?
-Focusing on trading setups rather than chasing price action allows traders to make more strategic and calculated decisions. It helps avoid emotional trading, reduces the risk of impulsive decisions, and can lead to more consistent and profitable outcomes.
What does the speaker mean by 'keep it simple' in the context of trading?
-'Keep it simple' in the context of trading means that traders should focus on the fundamentals, stick to proven strategies, and avoid overcomplicating their trading approach. This can lead to better decision-making and improved trading performance.
Outlines
📈 High Performance Trading Strategies
The speaker introduces two free downloadable resources: 'The Four-Step Method to High Performance Trading' and 'The Seven-Step Daily Routine for High Performance Traders'. These resources aim to develop a winning mindset and disciplined habits. The video also serves as a reminder for new viewers about the comprehensive trading education provided in the channel's playlist. The speaker, Trader Stacy Burke, plans to review and potentially update course materials, focusing on concepts like time frame trading, market balance, and the significance of opening ranges and initial balance in trading strategies.
📊 Understanding Market Dynamics and Trading Opportunities
This paragraph delves into the intricacies of market behavior, discussing the importance of timing and reference points such as closing prices. It outlines the significance of the opening range, initial balance, and the impact of news on trading. The speaker emphasizes avoiding trades during major news releases and the concept of 'day zero' setups for potential range expansion opportunities. The video also covers various trading scenarios, including three-day setups, first green day, first red day, and inside days, highlighting the potential for asymmetrical risk-reward in these situations.
🚫 Avoiding Major News Impact on Trades
The speaker discusses the importance of not trading before major news events and using the previous week's close as a reference point. The paragraph provides examples of best trade candidate opportunities, particularly focusing on a three-session setup involving other time frame traders. It also explains how to use the Universal EMA from 'The Playbook' for potential profit targets and the importance of exiting trades before major news to avoid uncertainty and risk.
📉 Trading Techniques and Market Behavior Post-News
The paragraph explores specific trading scenarios that occurred during the week, focusing on the behavior of the market post-major news releases. It discusses the strategies for entering and exiting trades based on market movements and the significance of timing levels and price behavior. The speaker uses examples from the Dow Jones 30 and West Texas oil to illustrate profitable trading opportunities, emphasizing the importance of understanding market signals and capitalizing on them.
🌐 Global Economic News and Its Influence on Trading
This section discusses the impact of global economic news on trading, highlighting how to use resources like Forex Factory to stay informed about major news events. It explains the importance of timing in relation to news cycles and how to map out trading strategies accordingly. The speaker also touches on the significance of the closing price and how it serves as a reference point for market movements in the new week, using the example of the Japanese Yen to illustrate the point.
📊 Leveraging Market Templates for Asymmetrical Risk-Reward Opportunities
The speaker emphasizes the importance of understanding market templates for identifying asymmetrical risk-reward opportunities. The paragraph discusses the concept of 'day zero' opportunities, peak formation highs and lows, and consolidation opportunities. It also references Peter Brandt and classical charting to highlight the significance of larger geometrical structures in trading. The speaker illustrates these concepts with examples from various trading sessions, including the Asian session and after major news releases.
📈 Capitalizing on Range Expansion and Market Signals
This paragraph focuses on the concept of range expansion as a signal for market movement and the importance of not chasing candles but rather waiting for the setup within the larger geometrical structure. The speaker provides examples of how the market has broken higher and the potential for parabolic opportunities, especially during the London session. The video also discusses the significance of the opening range and initial balance in setting up potential trade opportunities.
🎯 Identifying and Executing High-Probability Trading Setups
The final paragraph wraps up the video by emphasizing the abundance of high-probability trading opportunities throughout the week. The speaker advises traders to keep things simple, avoid chasing price action, and focus on trading setups that offer the best risk-reward ratios. The video concludes with a reminder to wait for major news releases and to stick to the 'rinse and repeat' opportunities that present themselves regularly in the market.
Mindmap
Keywords
💡High Performance Trading
💡Mindset
💡Routine
💡Playbook
💡Three Levels
💡Range Expansion
💡Asymmetrical Risk Reward
💡Parabolic Move
💡Timing Cycles
💡Major Red News
Highlights
The Four-Step Method and Seven-Step Daily Routine for high performance trading are free downloads aimed at developing mindset and routines to increase confidence and execution ability.
The importance of understanding different timeframes and the three levels every trader has each day when they come to the markets.
Discussion on how markets can expand range on the upside or downside, creating initial balance and potential trading opportunities.
The significance of avoiding major red news and its impact on trading strategies.
Explanation of three-day setups, first green day, first red day, inside days, and day zero setups for potential range expansion opportunities.
Targeting asymmetrical risk-reward in trading by risking 15-20 Pips and targeting 50-300 Pips, as illustrated with Gold's performance.
The concept of 'day three longs' and 'day three shorts' in the market and the importance of understanding session trading.
The significance of the opening range, initial balance, and news calendar in trading strategies.
How to use the Playbook to find the best setup and daily setup template for the session being traded.
The role of timing in trading, especially at the beginning of a new month, and its importance in establishing market boundaries.
Using Forex Factory for major economic news and how it can help map out trading opportunities for the week.
The reference point for closing price and its significance when the new week starts.
The importance of not chasing candles and understanding market boundaries established by larger geometrical structures.
Differentiating between parabolic opportunities in each of the three sessions and the concept of 'free cash Friday'.
The method to identify best trade candidate opportunities using the closing range of the week and three-session setups.
The approach to trading during major red news and the strategy of being out of the market with profits locked in before such events.
The significance of the closing price in establishing auction levels and boundaries for market movements.
The concept of 'low hanging fruit' trades and how they offer stress-free opportunities with significant return on risk.
The strategy of keeping trading simple, focusing on setups, and avoiding chasing price action for better performance.
Transcripts
the four-step method to high performance
trading and the seven-step daily routine
for high performance Traders are both
free downloads the four-step method for
high performance trading is about de
developing the mindset and the routines
to increase your confidence and your
ability to execute your trading Edge in
a live trading environment constant
progress seven-step daily routine for
high performance Traders is an audio
program download designed to help
Traders bulletproof their day-to-day
habits discipline and develop a winning
mindset again the link is in the
description box below they're free
downloads let's get started just
reminding Traders if they're new to this
Channel or if this is the first time
you've seen this video If you go to this
playlist everything you need is in this
playlist as it is titled we go over the
templates the timings the levels the
behavior of price this will help to
bulletproof your understanding of the
best trade setups in the Playbook again
these are free videos on the YouTube
channel to support and enhance the
skills and the development of your
trading prowess within the Playbook
itself everything you need is in this
playlist Trader Stacy Burke from Stacy
Burke trading today I'm going to be
reviewing uh a couple of Concepts uh I'm
going to try and do an extended video
that I'll uh put inside of the course
the Playbook and and hopefully be
updating some material very shortly uh
but I want to review some things today
that will hopefully cement things a
little clearer now we've talked about
the importance of other time frame
Traders the three levels that each and
every Trader has every day when they
come to the markets and I talk about
when the week starts on our Monday that
price begins to auction from our Clos
closing price level now we can see
markets pump up and expand the range on
the upside we this could be a Monday we
can see the markets dump down on a
Tuesday and expand the range on the
downside and that can create our initial
balance that's one type of scenario a
day one day two we can see a market that
stays above closing price on our Monday
and breaks higher on day two making
higher highs and still be above closing
price level but eventually that will
form a box whether that's a Monday
Tuesday Wednesday box that gives us a
lower low for a
potential pump and dump opportunity
that's a 3-day setup that's one type of
scenario this could also be a three
session setup Asia London makes a lower
low and then the US session goes
parabolic on a day a three session setup
The Playbook we talk about about opening
range initial balance news calendar the
importance of avoiding major red news
we'll talk about that briefly as well
three-day setups first Green Day first
red day inside days three session setups
and day Zero setups a day Zero setup is
an opportunity that can present where we
have a box that forms Peak formation
high peak formation low consolidation
inside for a potential range expansion
opportunity that is a measured distance
of that larger template this is where
we're targeting asymmetrical risk reward
we could be risking 15 to 20 Pips
depending on what you're trading and
targeting 50 100 300 as we saw today on
Gold uh for that measured move
opportunity whereas gold today kept
going and expanding the range for well
over 300 Pips so we've talked about
first Green Day we can get an opening
range an initial balance an inside day
that forms a first Green Day that could
also then become a breakout that breaks
out maybe in the Asian session or
continues in the London window breaking
out of that geometrical structure and
you can get a range expansion depending
on the session that you're trading as we
may see this Market move in range
expansion but it may not offer a trade
opportunity in the US window as we are
still on the front side of this move we
can see markets form
that day Zero template or a box over the
first two or 3 days we can have an
inside day in there as well and we may
eventually see a market make a higher
high and pull back a dump and pump
template for a range expansion we can
see a market pump up and break down
forming a first red day for another
potential parabolic collapse and break
out of a larger geometrical structure
again this larger structure is where we
can Target asymmetrical risk reward so
again we're accelerating into the move
in a range expansion and these are the
types of situations where Traders can
get caught trying to counter Trend a
market that is now going on a measured
move range
expansion we've talked about day three
Longs in the market day three shorts
first red Day first Green Day the inside
day parabolic trend trades three sessing
setups parabolic short squeezes
uh low hanging fruit and first balce
opportunities we will look at some
examples of those specifically from this
week and just to review the weekly
template Monday is day one that is the
opening range of the week Tuesday's day
two Wednesday is day three and the
midpoint range of the week day one day
two day three that resets and becomes
our new day one heading into our closing
range of the week Thursday is day two
and Friday again is day three and the
closing range of our week so Thursday
Friday can establish the boundaries as
we head into our new week so each
instruments going to have a different
type of template my job as a Trader is
to find the template that offers me the
best setup and the best daily setup
template on the day in the session that
I'm trading and as I've mentioned 90% of
my trades are in the US session uh but
this week we had some fantastic
opportunities in the Asian session which
we will look at today reminding traders
that there are some simple parabolic
opportunities in each of the three
sessions as we get to our day three on
free cash Friday uh looking for that
closing range of the week to potentially
offer us some larger parabolic
opportunities and today was the first
day of a new trading month again
reinforcing the importance of timing
from The Playbook the beginning of a new
15minute candle the beginning of a new
hourly candle a 4H hour candle a new day
a new week or a new month and of course
a brand new year these are all
significant timing Cycles obviously the
larger macro Cycles are very important
today the beginning of a new month which
is a new timing cycle I get my major
economic red news from Forex Factory
which you can just go to
forexfactory.com and that shows us
what's on major news released for the
calendar for the upcoming week and you
can potentially map out your week uh for
where we're going to end up on Friday
and we can see how some potential
currency pairs or cross rates will play
out in relation to Major red news or
potentially offer us opportunities as
well as on the indexes gold and oil
depending on what type of news is on the
calendar I just want to remind everybody
that these levels are what every Trader
has coming into the new day now people
have asked me what is the reference
point for closing price um well Friday
for 459 p.m. New York time is the
closing price time now I know that some
markets uh the indexes close at 400 p.m.
uh but they'll there'll be a closing
price in most cases specifically at the
459 p.m. level uh but regardless uh the
significance is having that level when
the new week starts and that's where
price will begin to auction back and
forth from over the course of the week
we can get markets that will trade lower
and that level can act as a magnet now
sometimes we'll see a range expansion
per perhaps on our opening range we may
see Monday pump up and close and close
up higher and the market can continue
higher that closing price level can be
significant but so is the weekly level
as the market trades as it begins its
new trading in the new week this is the
reference point that everything starts
to work back and forth from so when I
make the comment to Traders about not
chasing
candles understanding that until we get
our bigger box set up for either selling
or buying if we indeed have a setup this
level is what is Paramount in terms of
what the market is establishing our
boundaries from in the new week the
absence of major red news being on the
schedule these are the starting times
for these instruments and their
markets uh so we have currencies in gold
and bonds beginning at 8:20 a.m. crude
oil 9:00 a.m. and New York Equity
markets 9:30 a.m. and what that means
what the fugazi means is that I don't
view anything except my three levels and
when these markets open if the markets
have broken outside of those levels and
they open outside of those ranges during
these times then I refer you back to
Dalton Mind Over markets Market profile
understanding when a Market opens
outside of the previous day range in
those timing Windows now if we have
major red news on the calendar and it's
after those opening times that major red
news timing is specific for me to begin
my day I don't trade before the news I
am not in the market during
news uh and that goes for any type of
major red news so I refer you back to
Paul tutor Jones's quote always think of
your entry point as last night's close
now on a Monday uh the last night's
close is the previous close of the week
and if we are looking for a best trade
candidate it's a three session setup in
most cases I want it to involve other
time frame Traders on a Monday which
means that we will have broken or traded
to or through one of the previous days
higher low levels on Monday Traders had
a best trade candidate opportunity on
West Texas oil so remember again we have
our closing range of the week which is
our Friday pink line is our dividing
line between between Friday and Monday
we've traded below closing price level
on our Monday we'll zoom in on this a
little bit closer we've broken outside
of the previous day low of day boundary
that's our blue dotted line the green
line is our closing price level and we
have a market that opens up at 9:00 a.m.
New York time which is our candle just
to the right our 9:00 a.m.
engulfment we can put our Universal EMA
on here from The Playbook
and we would be targeting asymmetrical
risk reward from closing price to the
expanded range low of day for at least
100 or if the market continues to run a
200% expansion of the range as a
potential profit Target if the market
hasn't got there or it starts to extend
in the timing window we can always
follow this up with a trailer to take us
out of the market as it approaches that
level that's a Monday best trade
candidate a three session setup and
you'll also notice if we back this chart
up we have a closing range that started
on Thursday which gives us a three day
template for a reever parabolic reversal
best trade candidate on Monday free cash
Monday now on Tuesday we had major red
news at 8:30 and 10 a.m. durable goods
and consumer confidence 8:30 a.m. and
10:00 a.m. uh New York index is open at
9:30 and that is plenty of time if there
is a best trade candidate to either have
a nail and bail opportunity or to
potentially be in a move that can
capitulate prior to the news or a
currency opportunity if indeed it
presents now the dj30 gave us a first
red day on Monday first red day on page
six in the play Playbook uh sorry page
58 in the Playbook is a day that closes
below the open after a peak formation
High has been made now occasionally we
can have an inside day that gives us a
first red day but it will coincide with
a pump day the main thing to understand
about a signal day is is that it merely
brings our attention to that instrument
and then how does price set up on the
day so first red day is a high of
session high of day selling opportunity
if indeed it presents and on Monday we
had a first red day that made a peak
formation high now remember what I said
about closing price of the week uh the
price auctioned above closing price of
the week Monday is our new week our new
first opening range of the week we
traded underneath of that closing price
on Tuesday before breaking down the
current before the New York session
opens below the current closing price of
Monday so we' made a lower close on
Monday that's the first red day signal
we've pumped up prior to our our us
session opening we've broken down below
closing price and Consolidated but I
want to bring Traders attention to a
couple of things here uh again Paul
tutor Jones's quote about a range
expansion when you get a range expansion
the market is sending you a very loud
clear signal that the market is getting
ready to move in the direction of that
expansion Paul tutor Jones Friday's our
closing range of the week Monday is our
opening range of the week and our
closing price on on Tuesday is also
below Thursday's closing price and we
have 3 days of volume trap so I
mentioned earlier today we have Monday
Tuesday Wednesday 3-day setups we have
Friday Monday Tuesday if we have a 3-day
setup potentially setting up on a
Tuesday day two in our new Monday
Wednesday Friday template if we put our
Universal EMA on here we are inside of
our Universal EMA this is a 15-minute
chart now if Traders enter this trade at
the open at the low of Day level
remember timings levels behavior of
price on the close of the second candle
this is a 5 minute chart this is a 75
pit move in 10 minutes on a capitulation
on day two so I I wanted to point out
referring to Paul tutor Jones we're on
day two we're expanding the range we
have markets that are indica to us that
they are potentially going to expand the
range it's a first red day trade setup
for a range expansion and if we back our
timing up again we have Friday Monday
Tuesday a 3-day setup blowing off in the
direction of that creep a first red day
signal at the New York open and out of
the market minimum of 75 Pips prior to
Major red news obviously if Traders
stayed into that market and held on to
it there was more but they also run the
risk of a market potentially maybe
spiking back up uh so in my perspective
my approach to the markets is to be out
of the market with the money locked into
my account prior to Major red news first
red day trade on Tuesday for a easy free
cash stressfree opportunity on the Dow
Jones 30 if we had projected a range
expansion as a potential Target prior to
Major red news it still took a out of
proximately at the same level for a 100%
expansion of the range that market
continued to do a second full expansion
on the news release but out of the
market in 10 minutes with 75 Pips in a
first red day coil for a parabolic
explosion on Wednesday we had major red
news at 8:30 prelim GDP on Wednesday we
had a high of the week third hour
reversal 1 hour after the 9:00 a.m. open
on West Texas or spot crude this is a
three session setup and even with our
15-minute chart we just have an
engulfment we're out of balance when the
Market opens up at 9:00 a.m. The Market
opens and goes higher and you'll notice
we have uh 1 hour to the high before
engulfing and that starts our new 4-Hour
candle oil opens up 1 hour later and our
4-Hour cycle starts at that 10: a.m.
rotation we have an engulfment a one bar
stop targeting back inside of the range
to where breakout Traders started at
8:00 a.m. and you'll notice again the
pump and dump
template the move that started from the
lows of London is a breakout
pullback continuation to the high so
this Market has broken out on Tuesday
pulled back to that level and as I
mentioned earlier this week Traders will
also notice that that level on day three
coincides with 50% % and so there were
opportunities on the front side of that
move at the beginning of the 8: a.m.
hour for Traders that were looking for
that opportunity this is a 15-minute
chart for the parabolic explosive move
to the high of the week so backing this
up stair stepping again day one day two
day three blowing off in the direction
of the trend a day three parabolic
blowoff and a day 33 session reversal at
the beginning of the new hour and the
new 4-Hour timing cycle and if we zoom
in on our one minute chart once you
understand the importance of timing and
the levels and the fact that this Market
is now out of balance and we're on day
three we have front side and we have our
backside beginning of that new hour
We're on a smaller time frame this
Market is now breaking down at the
beginning of our new hour lower lows
lower highs coiling inside of our EMA
underneath of the breakout level we'll
just highlight this again for Traders
lower lows lower highs before dumping
down to the high of Day level and then
pumping back up and coiling for an
explosive move from the high of Day
level to the low of day breakout level
the 50% level again at where that move
began now we had crude oil inventories
on Wednesday at 10:30 a.m. so in my case
I would have stayed out of this Market
until after inventories were released
were already breaking down we've broken
down to the high Day level we have
inventories being released at 10:30 a.m.
and the point of staying out of the
market until after these releases is
that I have no idea what these markets
could do they could Spike high they
could Spike low they can widen the
spreads uh they could uh do anything
they want now if I'm trading this Market
how could I possibly have any size on
that when there's about to be a major
news release so in my case I wait we've
already our thesises that we've already
locked in the high of the day they pump
it up pump it up pump it up and the new
hour starts the new hour starts and
we're back inside of our coil at the
high of Day level in an already broken
down market after the inventories is
released we have a pump and dump
template into the new hour for the easy
collapse back into where that move
started no stress no heat after the news
one bar stop and an opportunity to
potentially be adding in as this Market
accelerating into that blowoff move we
also had an opportunity on the dj30 uh
low of the week I'll back this up onto
our 15minute chart day one day two our
first red Day short trade and day three
breaking out and expanding the range on
the
downside New York open blows off through
the low of the week taking Traders down
into the low of the week before
engulfing pulling back and jamming back
down into the low of peak formation low
level our new hour starts and we have an
engulfment a pin hammer and then another
pin hammer
engulfment for our entry back in a short
squeeze parabolic setup back not only
through the high of the session the
first hour session but into lower level
shorts from the London window if we just
drag this across in my situation I just
take a projection of the high and the
low as a PO potential profit Target or
the level that is hit first the lower
Peak formation highs that London makes
on the way down are areas where this
trade can
fail and new timing cycle as we get
towards the end of the hour locking in
the
profits as this trade has hit the high
of the session and cleared out those
lower level shorts but an excellent
reversal opportunity session three
session setup uh New York open after
major red news for a parabolic reversal
trade on the dj30 on Wednesday looking
at the Japanese Yen and as I mentioned
earlier in the video I talked about the
closing price of the week so again this
is our Monday Friday dividing area as
the week opens we auction around closing
price the market establishes the opening
range we have a range expansion on the
up
upside and on day two the market
auctions down and puts a lower low on
the downside so we now have our opening
range and initial balance we've expanded
the range on the upper portion of our
closed Friday's closing range and we've
expanded the boundaries on the lower
portion of our opening range as well as
Friday's closing range on the downside a
higher high in a lower low that lower
low now acts as a pump up into our
Monday's closing range level so our our
closing range of the week is our
starting point Monday has put in a
ceiling if you will I call it a ceiling
because price auctions up into that
level and on Thursday we have a
fantastic
opportunity for the short trade in the
Asian session a 3-day setup a pump and
dump template for a range expans
Target on Thursday's Asian session when
we have a market that is offering us
that range expansion opportunity we can
project that consolidation high low
level the volume above Tuesday's closing
price now can act as a neckline for
trapping volume up top into our high of
the week opening range level for a range
expansion opportunity a parabolic range
expansion opportunity in the Asian
window now several Asian pairs offered
this setup uh this is the Japanese Yen
you can go back and look at the same
types of opportunities but this is the
larger template day one day two day
three a day Zero opportunity Peak
formation high peak formation low lower
lows we expanded the range on the upside
expanded the range on the downside we we
now have a pump and dump template coiled
into the open of the Asian session so
traders that are Savvy and they
recognize this template forming and
they're trading the Asian session this
is a fantastic opportunity for a
parabolic opport a parabolic trade setup
that is not coming back in that session
now this pair also offered us lwh
hanging fruit trade after major red news
at the New York open as did the other
pairs uh in
retrospect the some of the other cross
rates offered a much cleaner off
opportunity for the loow hanging fruit
and of course this pair offered a
reversal trade in the third hour taking
uh back the low of Day level and going
parabolic in the Asian session we're
going to look at a couple of different
scenarios that occurred with these pairs
uh but the parabolic blowoff again
looking at the larger template
understanding that the weekly closing
price level we are underneath of that
when the Asian session opens remember
the three levels that everything works
from Traders are looking at candles
everything else look at the larger
templates for these asymmetrical risk
reward opportunities I'll point this out
this is a one bar stop this trade
offered Traders significant return on
risk with zero almost zero probability
of this trade coming back the pound yen
is another pair uh just in similar we'll
just look at this briefly point this out
the trader so again we have our opening
range we just back this up we triggered
highs Longs at the opening range uh
triggering highs of the closing Range
High but if we take our closing price
now and project this across we had an
inside day on Tuesday inside day lower
lows on Wednesday day three lower lows
remember these are not failed breakouts
we not we have not taken out the other
side of range lower low is a range EXP
expansion offering us a pump and dump
coil for a parabolic move underneath of
the closing price of the week so again
recognize that this is an auction level
establishing our boundaries creating a
larger consolidation box price is always
in a
box these are the types of opportunities
that I'm targeting when we get our range
expansion opportunities that we can
project profit targets to for those
breakout trade opportunities on Thursday
we had a great low hanging fruit
opportunity after major red news 8:30
a.m. we had uh Canadian GDP we also had
core pce and unemployment claims uh 8:30
a.m. New York time this Market had
pumped up Monday Tuesday Wednesday moved
higher we're at the high of the week
level on Thursday when our us session
starts we have major red news at 8:30 so
waiting for after the news heading into
our New York window Traders had the
opportunity for a loow hanging fruit
continuation trade loow hanging fruit
page 96 in the Playbook a trend
continuation opportunity on our 5-minute
chart we have a 10 11 Pips stop
targeting 40 to 45 Pips of profit Target
zero heat no stress a low hanging fruit
continuation trade on the reversal on
Thursday day two three session setup so
we have as London and New York blowing
off on the major red news pulling back
into our New York open for the easy
collapse on New York open that brings us
to
Gold uh this is a 30-minute chart and I
want to point something out to traders
that uh regardless of the time frame so
Traders are always asking me can we you
know how well how can I trade a 4H hour
chart because I can't check the charts
how about a can you show us a daily
system an hourly system uh these levels
are the same no matter what time frame
you have on the chart I could have a 1
minute chart an hourly chart a 4 Hour
chart a 30 minute chart um but closing
price high of day low of day high of
week low of week levels are the same
they don't change because of the time
frame so I I want to impress upon
traders that it's about the template and
the type of setups not the time frame
the levels the timings behavior of price
so if we come back to our original
template Friday is the closing range of
the week Mondays day one the opening
range of the week Tuesdays day two
Wednesdays day three and that resets and
becomes a new day one heading into our
closing range of the week so our closing
range establishes boundaries potentially
in our new week for our opening range
and those templates now our closing
range on Friday established a peak
formation low and a peak formation high
that was an outside day that creates a
day Zero potential template that's the
peak formation high peak formation low
consolidation opportunity a zero page 84
in the Playbook and you've heard me
reference Peter Brandt the purpose of me
looking for these larger geometrical
structures is because of the classical
charting range expansion opportunities
that those when they present those types
of opportunities present offer us
asymmetrical risk reward range expansion
profit Target opportunities so coming
back to our original thesis closing
price starts the auction process off for
the week our opening range is an inside
day on Monday the market makes higher
highs on Tuesday our day two it's Paul
tutor Jones says when you get a range
expansion the market is sending you a
very loud clear signal that the market
is getting ready to move in the
direction of that expansion when I
mentioned to Traders don't get caught
chasing candles look for the setup I'm
referring to the larger geometrical
structure not chasing movement of these
candles closing price of the week is
where our auction process begins we've
established our boundaries after Monday
the opening range and initial balance
are in place heading into Wednesday day
three which is why I emphasize the
importance of the opening range and
initial balance for every instrument not
just gold the same setups will apply on
any instrument at varying times whenever
but when these types of opportunities
present they can offer us very very
significant risk risk reward
opportunities we have a market now that
has broken higher above the opening
range on day three on our Wednesday with
a parabolic opportunity for London
session Traders again a session
opportunity and then we had a uh first
bar trade on major red news on Thursday
on uh our news Catalyst opportunity on
Thursday so I want you to go back and
look at this closing price level again
beginning the week we have gone down to
the low of the week we've closed now
above the range from the previous day
we've auctioned lower down first we've
we haven't taken out the high of Day
level we've dumped it down prior to
Major red news our first bar candle
traps volume remember the four types of
candles that I talk about we trapped all
this lower level of volume on the major
red news release core pce we had higher
highs on day two on our initial balance
that higher highs above closing price we
are now closed above closing price not
only of the day but of the Friday
closing price of the week we have a news
Catalyst momentum opportunity and if we
project closing price from low of day
that can give us a range expansion
profit Target in this particular case we
can use the closing price of the week as
a potential Target if we do not get
there as this trade reaches that timing
window expiration we can be looking to
lock in the profits this is a news
Catalyst opportunity coinciding with
closing price and our larger template
day one day 2 day three coiling into a
news Catalyst opportunity on Thursday
day two on the backside heading into
Friday we had major red news coming out
at 10:00 a.m. on Friday but we now have
a market that's broken out of a
consolidated ascending
triangle from the Thursday news Catalyst
heading into our free cash Friday we've
broken higher in London uh dumped down
in Asia uh open of the Year possession
pumped higher we now have a market that
is making higher highs and higher lows
that is a parabolic
template heading into our us session so
prior to our 10: a.m. news release we
have a market that's broken out and uh
9:45 a.m. we have a new news Catalyst
orange news that's taken that trap
volume and collapsed vertically and then
the explosive 10 a.m. a news candle that
goes back inside the high of Day level
so we've got a market that has pumped up
broken down and now establishing a dump
and pump template dump coil explosive
move after major red news we'll blow
this up in a moment we have a first
bounce off opportunity coiled inside of
our EMA in a dump and pump template in a
larger range expansion opportunity in a
parabolic coil now if we zoom in on this
Traders will will see that even if we go
to our we'll just show the first bounce
the first bounce is inside of our EMA
this is 9 minutes after our major red
news so when you understand the template
the larger opportunity the timing after
the news is least it's all systems go
we're back inside of our EMA we are now
targeting a potential move a minimum
back to the high of the day but
potentially now also a range expansion
opportunity and as I mentioned to
Traders on F minute chart we also had a
first bounce so time frames are relevant
if you understand the big picture uh you
can have the confidence to be entering
in and adding into this as this market
now is going on a potential range
expansion even at a minimum of the high
low consolidation from that high of day
low of us session consolidation
rectangle as we are now on top of the
high of the day targeting a full range
expansion of that move so an incredible
opportunity uh every single day this
week we had excellent opportunities and
there were multiple others but in the
interest of time just pointing out
sticking to the basics I'm looking for
the opportunities
that will present for a range expansion
opportunity whether we go for 100% %
Move Free Cash Friday uh where we're
targeting geometrical expansions for
asymmetrical risk reward and
understanding the difference between
chasing candles and scalping gaps and
catching Pips and everything else I'm
looking for the larger template to set
up for potential parabolic opportunities
where I have a 9010 best trade
setup easy low stress rinse and repeat
opport opportunities that show up again
and again and again and as I mentioned
Traders uh the the more you step back
you wait for major red news to be
released stick to the rinse and repeat
opportunities that show up whether there
are three session setups three-day
setups for larger expansions or just
parabolic opportunities in the session
that you're trading for nail and bail
types of Trades but there are best trade
setups in almost every single session
for to five times a week for fantastic
scalable parabolic opportunities keep it
simple Traders 1% better every single
day we'll expand upon this information
but I wanted to emphasize to traders
that every day we had multiple
opportunities for best trade candidates
keep it simple do not Chase candles
don't chase price action focus on
trading setups have a great day and may
the markets go with you
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