Best 1 minute order block trading strategy to grow small account

Summary

This tutorial video offers an innovative scalping strategy for the gold US dollar pair, combining smart money concepts with RSI divergence for high accuracy. The four-step strategy involves market structure analysis, identifying price changes, RSI confirmation, and trade execution within order blocks. The video includes practical examples, emphasizing discipline and a trading plan, with tips on managing risk and optimizing entries for potential gains.

Takeaways

• 📈 This tutorial focuses on a scalping strategy for the gold US dollar pair, combining the smart money concept with RSI Divergence.
• 🚫 The strategy discourages using indicators as the sole reason for entry, instead advocating for them as a confirmation tool.
• 📚 It's essential to understand the smart money concept and RSI indicator, with previous episodes providing detailed explanations.
• 🔍 The strategy involves four major steps: analyzing market structure, identifying changes of character, confirming with RSI, and executing trades.
• 🕒 Market structure is analyzed on a 15-minute time frame, looking for significant price movements that break recent patterns.
• 📉 The 'change of character' is identified on a 1-minute time frame, marking a potential shift in price direction.
• 📊 RSI Divergence signals on a 1-minute chart confirm the trade entries, with bullish or bearish divergences indicating potential reversals.
• 💼 Trades are placed within the identified order blocks, with stop losses set to optimize entry points and minimize potential losses.
• 💰 Profits are managed by taking half positions at the first target and repositioning stop losses as price moves favorably.
• 📝 The tutorial emphasizes the importance of discipline, proper risk management, and not exceeding a certain number of open positions for the same analysis.

Q & A

What is the main focus of the video tutorial?

The video tutorial focuses on an innovative scalping strategy for the Gold US Dollar pair, which combines the smart money concept with the RSI Divergence.

Why are indicators not used as an entry reason in this strategy?

In this strategy, indicators are used for confirmation of entries rather than as a reason to execute a trade, emphasizing a more advanced approach to scalping.

What are the four major steps involved in the scalping strategy presented?

The four major steps are: 1) Analyze market structure in a 15-minute time frame, 2) Observe price change of character in a 1-minute time frame, 3) Analyze RSI indicator for divergence signals, and 4) Place a trade in the 1-minute time frame order block after validation of all steps.

What is meant by 'change of character' in the context of this trading strategy?

'Change of character' refers to a shift in the price trend, such as a strong price movement that breaks the last lower high or higher low, indicating a potential change in the direction of the price.

How is the RSI indicator used in this strategy?

The RSI indicator is used to look for divergence signals in the 1-minute time frame, which serve as a confirmation for the entry into a trade.

What is an 'order block' in the context of this trading strategy?

An 'order block' is a price area identified by the strategy where the price is expected to potentially get rejected, providing a trading opportunity.

What is the significance of 'Alpha order blocks' mentioned in the script?

Alpha order blocks are identified when price makes liquidity zones before an order block, indicating that the spotted order block gains more importance and the price has a greater tendency to respect that order block.

How should a trader manage their position size when placing multiple orders based on the strategy?

A trader should risk half the amount for subsequent trades compared to the initial trade for the change of character's order block, and never have more than five open positions for the same analysis for a pair.

What is the recommended approach for setting stop loss and take profit in this strategy?

The stop loss should be set a few pips below or above the lowest or highest point of the order block area, and the take profit can be set at the next major structure level or by repositioning the stop loss as the price makes higher lows.

What is the importance of discipline and risk management in this trading strategy?

Discipline and risk management are crucial as traders should never terminate trades before the price reaches the targets, and they should be prepared to accept losses with confidence, ensuring that potential losses are minimized while maximizing rewards.