How I Made 11% in 1hour 20minutes (Trade Breakdowns)

Summary

The speaker details their strategy for achieving an 11% profit in a week through trading, emphasizing the importance of understanding market manipulation and identifying key chart patterns. They discuss the significance of observing pre-market activity, anticipating price movements based on 'true manipulation' signals, and setting targets using 'breakaway gap' and 'draw liquidity' techniques. The summary also highlights the speaker's approach to risk management, taking partial profits, and the importance of trading with high probability areas for quick and substantial returns.

Takeaways

• 📊 Utilize chart patterns and setups to identify trading opportunities, focusing on the timing around market open and key support/resistance levels.
• ⏰ Emphasize the importance of patience and not panicking, waiting for the right moment to enter or exit trades based on market movements.
• 🔍 Look for 'true manipulation' in the market, which involves identifying sell-side and buy-side targets, and using them to predict future price action.
• 🎯 Aim for high-probability targets rather than trying to predict exact price levels, using techniques like drawing liquidity and identifying inefficiencies in the market.
• 📈 Recognize the significance of 'breakaway gaps' and 'drawn liquidities' as potential entry or exit points in trades, signaling a shift in market sentiment.
• 📉 Identify 'bearish' and 'bullish' setups in the market, using these to inform trading decisions and manage risk effectively.
• 📝 Keep track of market narratives and structures, noting how they can shift and affect trading strategies, especially in the context of intermediate-term lows and highs.
• 🤑 Understand the concept of 'fair value gaps' and how filling these gaps can indicate market sentiment and potential reversal points.
• 📉 Use the 'smart money reversal' as a signal for potential market turns, especially when combined with other indicators like volume imbalances and price action.
• 📈 Focus on the importance of taking profits at balanced price ranges and recognizing 'partial areas' where the market may consolidate before continuing in a particular direction.
• 🚀 Highlight the value of quick trades with immediate profit realization, showcasing the potential for significant returns in a short time frame.

Q & A

What was the speaker's overall trading strategy for the week?

The speaker's trading strategy involved identifying sell and buy side targets, waiting for market manipulation around the 9:30 open, and using various technical indicators such as purple lines, new week opening gaps, and liquidity pools to make trades.

What does the term 'blood in the water' signify in the context of the speaker's trading strategy?

'Blood in the water' is a metaphor used by the speaker to indicate a market condition where there is a frenzy of activity at the 9:30 open, which they believe presents opportunities to make profitable trades.

How did the speaker use the concept of 'true manipulation' in their trades?

The speaker identified 'true manipulation' as a situation where the market fails to reach a new week opening gap, indicating a bearish sentiment. They used this concept to anticipate lower targets for their trades.

What was the significance of the 'new week opening gap' in the speaker's analysis?

The 'new week opening gap' was significant as it represented a level that the speaker anticipated the market might reach. However, they also emphasized the importance of setting targets before that level for a higher probability of success.

How did the speaker approach the concept of 'draw liquidity' in their trades?

The speaker used 'draw liquidity' as a point of interest to enter or exit trades. They looked for inefficiencies in the market where liquidity was resting and used these points as potential high-probability targeting areas.

What does the term 'type 2 intermediate term low' refer to in the speaker's analysis?

A 'type 2 intermediate term low' refers to a specific market condition identified by the speaker where the price fully fills a fair value gap, creating a level that should not be broken in a buying program, indicating a potential reversal point.

How did the speaker manage risk during their trades?

The speaker managed risk by setting stop losses and taking partial profits at strategic points, such as when the market showed signs of a potential reversal or when they reached their predetermined targets.

What was the speaker's approach to entering and exiting trades based on the market's behavior?

The speaker entered trades when they identified key technical levels and market manipulation patterns, and exited trades by targeting areas of inefficiency and liquidity before anticipated levels like the new week opening gap.

What role did the 'breakaway gap' play in the speaker's trading decisions?

The 'breakaway gap' was used by the speaker as a signal for potential market movement. They looked for instances where the market showed a willingness to move in a particular direction, using this as an entry or exit point in their trades.

How did the speaker use the concept of 'protected low' in their trading strategy?

A 'protected low' was identified by the speaker as a level that should not be broken if the market was in a buying program. This concept was used to anticipate potential reversals and to manage risk by setting stop losses and taking entries accordingly.

What was the speaker's advice on taking profits and managing trades?

The speaker advised taking profits at points of balance in the market, such as equal lows or areas of buy side delivery, and to be aware of small details like tiny fair value gaps which could indicate potential profit-taking opportunities.