13x MENTORSHIP 2024 lesson 3 G Setup

Summary

In this video, the instructor outlines various gap trading setups, focusing on four key entry strategies: Gap to Gap CC, Gap to Classic CC, Gap to Direct Breakout, and Hidden CC. The discussion emphasizes the importance of understanding time frames and how to combine concepts like confirmation candles with equilibrium entries. The instructor provides practical examples and insights into identifying these setups in the market, highlighting their potential for profitable trades. By the end, viewers are encouraged to practice and incorporate these strategies into their trading approach.

Takeaways

• 😀 The lesson focuses on gap setups and their significance in trading strategies.
• 📊 Four main levels of setups are discussed: classic levels, gap levels, CC levels, and their combinations.
• 🕒 Understanding time frames is essential, with a hierarchy from 4 hours down to 15 minutes.
• 📈 Four major setups are identified: classic to classic, classic to gap, classic to gap CC, and classic to gap breakout.
• 🔄 The first entry method involves a gap to gap CC setup, where traders can sell as price reaches a specific level.
• ⚡ The second entry type is a gap to classic CC, which is considered a powerful signal for trading decisions.
• 🚀 The third entry involves a gap to direct breakout, where price levels are created and broken simultaneously.
• 🔍 The fourth setup is the hidden CC, where price reacts to levels that are not immediately apparent.
• 📉 Examples from charts illustrate successful trades based on these setups, emphasizing their effectiveness.
• 📚 Further learning will include entry confirmations to enhance trading strategies.

Q & A

What are the four major levels mentioned in the video?

The four major levels are classic levels (either A or V), gap levels, levels with confirmation candles (CC), and the combination of these levels.

What are the four major setups introduced for gap setups?

The four major setups are: 1) Classic to Classic (C to C), 2) Classic to Gap (C to G), 3) Classic to Gap CC, and 4) Classic to Gap Breakout.

How does the video describe the concept of 'equilibrium' in relation to time frames?

Equilibrium is discussed in terms of the order of time frames, which transitions from one time frame to another, such as from 4 hours to 2 hours and so forth.

What is the significance of a 'gap to gap CC' entry?

A 'gap to gap CC' entry is significant because it allows traders to sell instantly when the price reaches a specific level after a gap is formed, anticipating a price drop.

Can you explain what a 'direct breakout' is?

A direct breakout is described as a classic level that is created and broken at the same time, often characterized by a bullish gap followed by a quick drop, indicating a strong market move.

What is meant by 'hidden CC' as mentioned in the video?

Hidden CC refers to a situation where the price ignores the main level to reach a gap CC that is either above or below the main level before continuing its movement.

Why are the setups for gap trading considered powerful?

These setups are considered powerful because they provide clear points for instant trades, often leading to significant market movements when executed correctly.

What examples are given for effective gap setups in trading?

Examples include identifying H4 gaps followed by lower time frame setups that confirm bullish or bearish movements, often leading to profitable trades.

How does the speaker recommend using the setups in real trading?

The speaker recommends using these setups combined with entry confirmations to enhance trading strategies, suggesting a structured approach to maximize profit potential.

What is the homework mentioned at the end of the video?

The homework consists of practicing the setups discussed and observing their effectiveness in real trading scenarios, with the promise of sharing more advanced strategies later.