BEST US30 STRATEGY IN 2024

Summary

In this trading strategy video, the presenter explains a detailed approach to identifying potential trades on the New York Stock Exchange (NYSE), focusing on specific time zones and market movements. They emphasize the importance of recognizing market structure breaks, fair value gaps, and liquidity points for take-profit targets. The video offers step-by-step guidance on setting up trades with a 1:2 risk-reward ratio, highlighting the need for patience and proper risk management for successful trading.

Takeaways

• 🕒 Set your trading platform to the correct time zone, UTC-4 or UTC-5, depending on the season, for New York trading strategy.
• 📊 Prefer using the US3 chart for this strategy, but it can be backtested on other currencies or markets.
• 🚫 Remember, not every day will present a trading setup; patience is key and avoid forcing trades.
• 🔍 Identify market structure breaks and fair value gaps as potential entry points for trades.
• 🎯 Use liquidity points as take-profit levels after a market structure break.
• 📉 Look for the market to enter the fair value gap and anticipate price movements to the downside.
• 📈 After a market structure break, anticipate buying opportunities when the market sweeps sell-side liquidity.
• 📊 Mark highest and lowest points as buy and sell side liquidity levels to anticipate market movements.
• 📍 Wait for the market to sweep either buy or sell side liquidity to confirm the direction of the next move.
• 🔑 Look for confluences like auto blocks next to fair value gaps for high-probability trade setups.
• 💡 A fair value gap is a gap between three consecutive candles, not necessarily with wicks, and can signal a price fill opportunity.

Q & A

What is the main topic of the video?

The main topic of the video is explaining a trading strategy, specifically for the forex market, focusing on identifying trading setups and managing risk.

Why is the time zone set to UTC minus 4 or 5 in the trading strategy?

The time zone is set to UTC minus 4 or 5 to align with the New York trading session, which is important for the strategy's effectiveness, as it may vary depending on the market's liquidity and activity.

What does the speaker suggest marking on the trading chart?

The speaker suggests marking 10 a.m. and 11 a.m. as key times to watch for potential trading opportunities within the strategy's framework.

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

A 'break of structure' refers to a situation where the market price moves past a previously established pattern or level, indicating a potential shift in the market trend.

What is meant by 'fair value gap' in the trading strategy?

A 'fair value gap' is a gap between three consecutive candles on a trading chart, which can be used as a reference point for potential entry or exit points in a trade.

Why is it important to target the 'lowest hanging fruit' in a trade?

Targeting the 'lowest hanging fruit' means aiming for the most accessible profit point that is nearest to the current market price, making it a realistic and achievable target within the trade.

What is the significance of 'liquidity points' in the trading strategy?

Liquidity points are areas on the chart where there is a concentration of trading activity, indicated by equal highs or lows. They serve as potential take-profit or stop-loss levels in the strategy.

What does the speaker mean by 'sweeping liquidity'?

'sweeping liquidity' refers to the market price moving past a previously identified liquidity point, which can signal a potential change in market direction or momentum.

What is the recommended risk-to-reward ratio for the trades in this strategy?

The recommended risk-to-reward ratio for the trades in this strategy is 1:2, which means for every unit of risk, the trader aims to make two units of profit.

Why is patience important in this trading strategy?

Patience is important because the market does not always move in a straight line, and waiting for the right setup or confirmation can increase the chances of a successful trade.

What is an 'auto block' and how is it used in the strategy?

An 'auto block' is a candlestick pattern that precedes an impulsive move in the market. It is used in the strategy to identify potential entry points for trades, especially when combined with a fair value gap.

Outlines

00:00

📈 Trading Strategy Introduction

The speaker begins by introducing a trading strategy tailored for the New York time zone, emphasizing the importance of setting the correct time zone for accuracy. They suggest using UTC-4 or UTC-5 depending on the season and prefer using the US3 time zone for this strategy. The speaker advises patience as not every day will present a suitable trading setup. They highlight the significance of identifying market structure breaks and fair value gaps as key elements of the strategy, using them to determine entry and exit points for trades.

05:02

📉 Liquidity Points and Trade Execution

In this paragraph, the speaker delves into the specifics of identifying liquidity points as potential take-profit levels. They discuss the importance of marking high and low points on the chart and using these as targets for trades. The speaker illustrates how to spot market structure shifts and fair value gaps, and how these can be used to anticipate market movements. They also explain the concept of 'auto blocks' and 'fair value gaps' as indicators for potential trades, emphasizing the need for patience and proper risk management to maximize profitability.

10:02

🚀 Advanced Trading Techniques and Risk Management

The speaker concludes by discussing advanced trading techniques, such as identifying auto blocks next to fair value gaps for high-probability trades. They stress the importance of having a clear exit strategy and setting stop losses to manage risk effectively. The speaker also touches on the psychological aspect of trading, highlighting the need for patience and discipline. They share their personal approach to trading, focusing on quick trades with a 1:2 risk-reward ratio, and express their intention to continue sharing insights and daily trades in future videos.

Keywords

💡Strategy

In the context of the video, 'strategy' refers to a systematic approach or method employed by traders to make decisions in the financial market. The speaker emphasizes the importance of having a clear strategy for identifying trading opportunities. For example, the speaker mentions a specific strategy involving the use of time zones and market structure analysis.

💡Time Zone

The 'time zone' is a geographical region where the same standard time is observed. In the video, the speaker specifies the importance of setting the time zone to UTC minus 4 or 5, depending on the season, to align with the New York trading session. This is crucial for the timing of trades within the described strategy.

💡Market Structure

Market structure in trading refers to the pattern or framework that the price of a security forms over time. The video discusses identifying breaks in market structure as a signal for potential trades. An example given is the break of a certain low point indicating a shift in the market's direction.

💡Fair Value Gap

A 'fair value gap' is a term used to describe a price range where the market is expected to find equilibrium. In the video, the speaker identifies this gap as a target area for trades, expecting the price to move towards filling this gap after a market structure break.

💡Liquidity

Liquidity in trading refers to the ease with which assets can be bought or sold without affecting their price. The script mentions 'buy side liquidity' and 'sell side liquidity' as points to watch for market movements, indicating areas of high trading activity that can influence price direction.

💡Break of Structure

A 'break of structure' occurs when the price of a security moves beyond a previously established pattern or level. The video describes this as a critical moment for traders to identify potential entry points for trades, as it signifies a change in the market's trend.

💡Risk-Reward Ratio

The 'risk-reward ratio' is a comparison of the potential loss and potential gain of a trade. The video emphasizes the importance of a 1:2 ratio, suggesting that for every unit of risk, there should be two units of potential gain, which is considered ideal for maximizing profitability.

💡Stop Loss

A 'stop loss' is an order placed with a broker to sell a security when it reaches a certain price. The video mentions setting a stop loss to manage risk, placing it below a certain candle to protect against adverse market movements.

💡Confluence

In trading, 'confluence' refers to the meeting of multiple technical analysis signals that indicate the same market direction. The speaker in the video looks for confluences, such as an 'auto block' next to a 'fair value gap,' to confirm the validity of a trade setup.

💡Auto Block

An 'auto block' is a term used in the video to describe a specific candlestick pattern that signals an impulsive move in the market. The speaker looks for this pattern as a confirmation before entering a trade, especially when it is next to a fair value gap.

💡Candlestick

A 'candlestick' is a graphical representation of the price movement of a financial instrument over a specific time period. The video uses the term to describe key price movements, such as bullish or bearish candles, which provide signals for potential trades.

💡Volatility

Volatility refers to the degree of variation of a trading price series over time. The video script mentions that traders need to be patient in high volatility situations, as trades may play out quickly and require quick decision-making.

Highlights

Introduction to the trading strategy with emphasis on understanding setups and not trading without a clear setup.

Setting the correct time zone to UTC-4 or UTC-5 depending on the season for accurate trading.

Preference for using the US3 time zone for this particular trading strategy.

Marking 10 a.m. and 11 a.m. as key times for potential trading opportunities.

Identifying a break in market structure and a fair value gap as potential entry points.

Using liquidity points as take-profit levels after a market structure break.

The importance of targeting the closest liquidity point for realistic profit expectations.

Explanation of how to take a short position within a specific frame and the rationale behind it.

The concept of market sweeping liquidity and its implications for future price direction.

Marking high and low points as buy and sell side liquidity for anticipating market moves.

Waiting for the market to sweep either buy or sell side liquidity to confirm a trading direction.

Taking trades based on the market's reaction to liquidity points and the use of a 1:2 risk-reward ratio.

The significance of a bullish candle closing within a certain frame as an entry signal for a long position.

Setting a stop loss and take profit based on the identified liquidity points.

Taking multiple trades within the same trading session based on market behavior and structure.

The importance of patience in trading and waiting for the market to fill a fair value gap after an auto block.

Using a combination of an auto block and a fair value gap as a strong signal for a trade entry.

Targeting quick trades based on market volatility and the potential for immediate profit.

The strategy's effectiveness demonstrated through two example trades and the importance of proper risk management.

Commitment to sharing daily trades and insights to help traders understand decision-making processes.

Transcripts

hey what's up guys so in this video I'm

going to be just explaining on my

strategy some of yall said like I should

go through what you guys don't really

understand go step by step what you

should be looking for exactly right so

here we're looking at new state here as

you guys can see so with the strategy

first things first what we do is um we

have to make sure that on our time zone

it's UTC minus 4 you have to put it on

New York right sometimes it's UTC minus

5 depending on the season and guys um

this I preer us3 I prefer us3 with this

strategy so you can back test it on

other currencies or whatever but I think

I got profitability through um us3 and

remember guys uh it's not every day that

you're going to find a setup if you

don't get a setup there's no way you

have to trade so yeah just keep that in

mind so right there you're going to Mark

firstly your 10 a.m. as you can see

right there you're marking your 10 a.m.

and your 11 a.m. and 11 a.m. right there

when the Market reaches to a point where

by like it's right here and we're

expecting it to go inside for like

trades first thing a person might

identify is that wait there's a break of

structure right there right and uh

there's a fair value G right there so

looking back there are certain low

points which they can use as their uh

liquidity points like as their take

profit points right there after that

break of St that market structure shift

right there they're going to be

expecting price to go inside the fair

value Gap right there they're expecting

it to be like this and go into the

downside right and maybe targeting this

low point right here targeting this low

point right here right that can happen

and I think it happened here but we have

to look at the bigger picture right so

with this alone let me show you what

happens the market gets inside the yes

right there mhm okay it's going way too

fast relax bro relax okay let me just

put it like this yeah let me just put it

like that so you can take this short

cell within that frame right there and

guys remember you have to like Target

the like the lowest hanging FL which is

like near to like where the market is

cuz being realistic the market reaching

there and reaching here if you have

something that you can reach which is

near whether you have to go for

something which is lower you see the

best approach is to Target something

which is there like where the market is

you see so like yeah that's why I

decided to like take this one right here

cuz as you can see we saw a breaker

structure right there Mar structure

shift right there the market went inside

uh that fa Gap then we targeted the

downside which is right there right now

but in this Frame we can expect to take

more than one trade by that I mean once

you see that break of structure then you

enter for a sell right there then you go

for the lowest point which is right

there now you're already but what can we

expect now we have that narrative okay

the market took my take profit right but

with the strategy itself we have to be

checking on where like the market swept

liquidity right so when the market is

moving just like this we're going to be

targeting we going to mark your highest

point which is right there that's your

buy side liquidity you're going to mark

your sell side liquidity right now so

now we are waiting for the market to

sweep either of the buy side and the

sell side liquidity right once the

market sweeps the sell side liquidity we

know it has to buy right cuz it's

basically taking out uh Sellers and

going for buyers but if it goes for the

buy side liquidity we know it's taking

out buyers right here and going to sell

now let's see what happens when the

market enters our P the time frame that

we're basically focusing on which is

from 10 to 11: right and on the time

frame again it's 5 minute you can go to

five three and one it's not necessarily

you have to focus on 5 minutes only okay

you have to remember that let me just

delete this fair value Gap since I

showed you that you can take that trade

that we started with and yeah let's go

to this one so with this one we're

waiting for Market to break either the

sell side

liquidity right there or as a buy side

liquidity see right there so let's see

what it does first things first the

market went inside right as I said right

now the market swept the sell side

liquidity now what we're looking for is

buying right now we're looking for

buying right so as soon as the market

touches or ships like that sell side

liquidity again with that liquidity

which is a buildup of like equal lows

right there equal lows by equal lows I

mean um let me just draw a line This

wigs that are basically the say like

they're in the same level they're in the

same level that is a high liquidity

point they have been swept again with

that sell side liquidity that we

basically targeting the most that's

giving us the clear direction right so

if you can look back you can see that

there are other points of liquidity

right there right so the market once it

sweeps the sell side liquidity what we

do since we're anticipating for a buy

we're going to look for a candle close

to the upside which has to be a bullish

candle

right now right there on that candle

this candle right here the candle that

closed inside here it closed as a

bullish candle right so that gives us a

clear idea of yeah you're going to the

upside now what are we targeting from

here since this candle Clos as bullish

we're targeting the buy side liquidity

right so you're going to pull out your

twool and put a long position you're

going to be entering from there putting

your stop loss on that low right there

and targeting the high is that iide

liquidity the trade itself as you can

see is a 1 is to two RIS reward ratio

which is perfect which is perfect one is

to two risk World ratio trades are

actually perfect and it's what I suggest

to people mostly since it has a high win

rate and if you lose if you use proper

risk management actually you're going to

lose less you put your stop loss below

um that candle and we targeting that

high which is right there let's see what

happens boom straight the market doesn't

even um Cal down or retest whatever it

goes up takes the buy side liquidity

just like that actually right now we

have taken two trades right youve taking

two trades I think it's enough to call

it a day but there are some people out

there who are very very eager to get

this money bro so now for someone who

actually wants to trade the last move

since we have like um we had made this

move inside you can either like I've got

that sell to the downside or this buy to

the upside but for a person who wants to

Target another trade since the market

has taken um the buy side liquidity now

we're expecting it to go down since as

it took out the sside liquidity we

expect to go up right so now we're

expecting it to go to the downside since

it took out the buy side liquidity now

now in this one we're going to see how

the market plays out since it took the

buy side liquidity now let's see what

happens what moves does it create now

from that move to the downside right

there we know that the market is really

going down since there was a market

structure shift right here that previous

low that was made was broken was broken

if you can clearly see this you can go

to the 3 minute time frame just to have

a look of what I'm talking about you can

see that low right there was created and

it was

broken now since the market broke

structure here we are looking for

confluences what's what our our

confluences now we are looking for a aut

block and we're looking for a fair value

Gap now for me I personally look for an

auto block which is next to a fair value

Gap that's how I know my trade is going

to be a bang so as you can see right

there as you can see um that candle the

last candle before an impulsive move to

the downside that's your auto block

right there that's your order

block right there that's your order

block that candle the black one before

an impulsive move to the downside now

what's next to that auto block as you

can see we are spotting a fair value Gap

now a fair value Gap people usually say

a value Gap like there has to be a Weck

a week by a we I mean this long thingy

right here most people confuse it by

saying that there's going to be a wick

there has to be like a wick on that

candle which we drw draw from it to this

week of this cand right it's not really

like that guys you can like a fair value

Gap is just basically a gap between

three consecutive candles right so even

though there's no Wick right there this

is still a fair value Gap so you can see

right here from that candle to the from

this candle right here to that candle

you guys you can see one two three three

candles three consecutive candles right

there so now what we're doing is we're

expecting prize to fill this F really

gap which is next to an aut block which

is like enough for me to say yeah I'm

taking this trade this is a banger trade

if it doesn't go my way it doesn't go my

way that's how the market works it

doesn't move in a straight line so we're

going to be expecting price to come

inside here to come inside here and

what's our Target the lower the lowest

low right there which is right there

we're targeting for quick you see quick

things I'm not that passionate enough to

hold a trade for the whole day so me

targeting stuff like this is actually it

puts me in a good scenario right so yeah

you're just basically going to take a

short position from there we're

targeting that low we put our stop loss

on that high now the thing is I don't

usually put it on that Wick I put it

higher just to give it a little

breathing space right even here I should

have put it like a little bit lower just

to give it a little breathing space in

case it wants to come in retest here so

yeah put it give it a little breathing

space which is right there now we are

targeting the low there which is right

right there that's our take profit which

is right there now let's see how it

plays

out now the game here is patience now

the game is patience the tra the trade

is triggered right

there let me just extend

this and just like that your TP has been

hit your TP has been hit now this is one

of the most powerful uh strategies I

know it f the fa but went ahead and

filled the other block then went to the

downside just like that now with these

two trades with these two trades the

difference is volatility is more here

the volatility is more yeah here you

have to be patient enough but here

there's too much volatility in an

instant the trade is playing out in an

instant it doesn't consolidate or do

stuff of higher highs lower highs I mean

and lower lows lower highs lower lows

lower highs so that's an indication that

the market is going to a downside right

and yeah that's my strategy on new 30

and um I hope this really helps you guys

and I'm really going to like um make

more videos on this like do like trades

each and every single day that I take

why did I take this kind of Trad what

happened with this kind of Trades you

see stuff like that so yeah let's just

end it here and I'll see you on the next

one peace out sh