The Only Day Trading Strategy You'll Ever Need (Beginner to Pro)

Summary

This video script outlines a day trading strategy focused on price action, emphasizing the importance of having a consistent strategy to achieve profitability in trading. It details how to identify market trends by analyzing high and low structures and using supply and demand zones to determine entry and exit points. The strategy advocates for simplicity, a strong balance of profits and losses, and the use of structural confirmation across different time frames to minimize losses and maximize gains. The presenter also addresses the psychological aspect of trading, suggesting techniques to manage risk tolerance and耐心等待 trading setups.

Takeaways

• 📈 Consistent profitability in trading is achieved through a strategy with a positive expected outcome.
• 🔄 Traders often lose due to a lack of strategy or by frequently switching strategies after encountering losses.
• 📊 The proposed trading strategy is price action focused, eschewing indicators for a purer market view.
• 🚫 The strategy avoids fundamental analysis, relying solely on chart patterns and price movements.
• ↗️ The strategy advocates for making more on winning trades than losing on losing trades to ensure long-term profitability.
• 📉 Understanding market structure through highs and lows is crucial for determining market direction and making informed trading decisions.
• 🔄 Market trends eventually reverse, and recognizing these reversals is key to capitalizing on new trading opportunities.
• 🛍️ Supply and demand zones are used to identify potential entry and exit points in the market based on historical price consolidation areas.
• 🔄 The strategy emphasizes the importance of risk management, aiming for a strong balance between profits and losses.
• ⏱️ The strategy is applicable across different time frames, demonstrating the universality of price action concepts.

Q & A

What is the key to becoming a consistently profitable trader according to the script?

The key to becoming a consistently profitable trader is to have a trading strategy that has a positive expected outcome.

What are the two main problems that cause traders to lose money?

The two main problems are having no strategy at all, leading to random trades without a statistical edge, and strategy hopping, where traders switch between systems after experiencing losses instead of working through them.

Why is it important to focus on price action in trading?

Focusing on price action is important because it allows traders to directly observe what the market is doing without any interference from indicators or external factors.

How does the script define a downtrend and an uptrend?

A downtrend is defined by the market making lower lows and lower highs, while an uptrend is characterized by the market making higher highs and higher lows.

What is the significance of marking highs and lows in the market?

Marking highs and lows helps traders identify the direction of the market trend and determine whether they should be buying or selling.

Why is it recommended to view market structure as larger waves rather than marking every single small movement?

Viewing market structure as larger waves simplifies the analysis and keeps the trading strategy relevant by focusing on significant trends rather than getting lost in minor fluctuations.

How does understanding market reversals help in trading?

Understanding market reversals helps traders avoid trading on the wrong side of the market and can turn these reversals into trading opportunities.

What is the concept of supply and demand in the context of trading?

Supply and demand in trading refers to the balance between buyers and sellers in the market. When demand exceeds supply, the market goes up, and when supply exceeds demand, the market goes down.

Why are demand zones considered good places to buy and supply zones good places to sell?

Demand zones are seen as good places to buy because they represent areas of consolidation before a large upward move, indicating a previous level of strong buying interest. Supply zones are good places to sell because they represent areas of consolidation before a large downward move, indicating a level where sellers are willing to sell at a premium.

How does the script suggest managing risk and maintaining profitability in trading?

The script suggests managing risk and maintaining profitability by making more money on winning trades than what is lost on losing trades, thus balancing profits and losses.

What is the 'standard confirmation' technique mentioned in the script?

The 'standard confirmation' technique involves using structural confirmation or a change in market structure on a lower time frame to validate trades set up on a higher time frame.

Outlines

00:00

📈 Importance of Strategy in Trading

The paragraph emphasizes the necessity of a trading strategy with a positive expected outcome for consistent profitability. It outlines the common pitfalls traders face, such as lacking a strategy or frequently switching strategies after initial losses, leading to frustration and failure. The speaker introduces a day trading strategy focused on price action, devoid of indicators and fundamental analysis, and highlights the simplicity and reliance on chart analysis. The strategy aims to ensure profits by making more on winning trades than losing ones, focusing on market trends indicated by higher or lower highs and lows.

05:02

🔍 Understanding Market Structure and Trends

This section delves into the concept of market structure, explaining how to identify trends by observing the formation of higher or lower highs and lows. It introduces the idea of 'fractal concepts' in price action, applicable across different timeframes. The paragraph discusses the inevitability of market trend reversals and the importance of recognizing these to avoid trading against the market. It also outlines the use of supply and demand zones as key indicators for potential trading opportunities, suggesting that these zones are areas of market consolidation before significant price movements.

10:04

💹 Applying Supply and Demand Zones in Trading

The paragraph explains the practical application of supply and demand zones in trading. It describes how to identify these zones on a chart and use them to determine entry points for trades. The concept of buying from demand zones in uptrends and selling from supply zones in downtrends is introduced. The speaker provides a real-world example of how to plot and trade a demand zone, illustrating the process with a chart example. The importance of risk-reward balance in trades is highlighted, with the speaker advocating for larger wins to offset potential losses.

15:05

📉 Trading in Downtrends and Reversals

This section continues the discussion on trading strategies, focusing on how to trade in downtrends and handle market reversals. It describes the process of identifying supply zones and using them to enter sell trades, with a detailed example of setting up a trade with stop loss and target levels. The paragraph also touches on the psychological aspect of trading, discussing risk tolerance and how it affects trading decisions. The speaker suggests using low time frame structure confirmation to minimize losses and increase the probability of successful trades.

20:07

🔄 Confirming Trade Setups with Lower Time Frames

The final paragraph introduces the concept of using lower time frame structure confirmation to validate trade setups. It explains how to use market structure on a smaller time frame to confirm trends observed on a larger time frame, thereby increasing the likelihood of successful trades. The speaker provides an example of how to apply this confirmation method, detailing the process of identifying a shift in trend and the subsequent trade entry. The paragraph concludes with a reminder of the importance of strategy and consistency in trading, and the option for viewers to explore further learning resources.

Keywords

💡Trading Strategy

A trading strategy is a well-defined plan that outlines the specific conditions under which a trader enters and exits trades. In the video, it's emphasized as the key to becoming a consistently profitable trader. The speaker discusses the importance of having a positive expected outcome and avoiding the pitfalls of either having no strategy or frequently changing strategies, which are common reasons traders lose money.

💡Positive Expected Outcome

This refers to a trading approach where the potential gains from successful trades are expected to outweigh the losses from unsuccessful ones over time. The video underscores that a solid trading strategy must have a positive expected outcome to ensure profitability. It's tied to the concept of making more on winning trades than losing on losing trades.

💡Price Action

Price action is the movement of an asset's price over time, reflecting supply and demand dynamics. The script focuses on a price action trading system, which means the strategy is based on interpreting price movements on charts without using technical indicators. The speaker explains how to read market direction from price action, which is central to identifying trends and potential trading opportunities.

💡Market Structure

Market structure in the context of the video refers to the pattern of highs and lows that form during a market trend. Understanding market structure is crucial for identifying trends and potential reversal points. The speaker illustrates how to recognize uptrends (higher highs and higher lows) and downtrends (lower lows and lower highs) to determine the direction of the market.

💡Supply and Demand Zones

Supply and demand zones are areas on a price chart where the market has previously consolidated before a significant price movement. The video describes how to identify these zones and use them as entry points for trades. Demand zones are areas of consolidation before an upward move, suggesting potential buying opportunities, while supply zones are before a downward move, indicating selling opportunities.

💡Risk-Reward Ratio

The risk-reward ratio is a measure used in trading to evaluate the potential risk of a trade against the potential reward. The video stresses the importance of having a favorable risk-reward ratio, aiming to win more on profitable trades than to lose on unprofitable ones. This concept is integral to the trading strategy presented, as it helps in maintaining profitability even with a win rate of around 50%.

💡Stop Loss

A stop loss is an order placed by a trader to close a trade at a certain price to limit potential losses. In the script, the speaker explains how to set stop loss orders in relation to supply and demand zones or other significant price levels to manage risk effectively. Proper stop loss placement is a key component of the trading strategy to protect capital.

💡Trending Markets

Trending markets are those that exhibit a clear and sustained upward or downward movement. The video's trading strategy is particularly effective in trending markets, as it capitalizes on the momentum of the trend. The speaker mentions that the strategy may not work as well in choppy or range-bound markets, highlighting the importance of market context in trading.

💡Reversals

A reversal in trading signifies a change in the direction of the market trend. The video discusses the importance of recognizing market reversals to avoid trading against the new trend and to turn them into potential trading opportunities. Understanding and identifying reversals is crucial for adapting to market changes and maintaining profitability.

💡Risk Tolerance

Risk tolerance refers to an individual's willingness to take on risk in trading or investing. The script mentions that different traders have different risk tolerances, which can influence their trading behavior, particularly when facing losses or losing streaks. The speaker suggests strategies to accommodate varying risk tolerances, emphasizing the need for a personalized approach to trading.

Highlights

A consistently profitable trading strategy requires a positive expected outcome.

Traders often lose due to lacking a strategy or giving up on a good strategy too soon.

The proposed trading strategy is price action focused, avoiding indicators and fundamental analysis.

The strategy emphasizes simplicity and a balance between profits and losses.

Understanding market direction is crucial for determining whether to buy or sell.

Market trends are identified by looking at the high and low structure of price movements.

Fractal concepts apply across all time frames, simplifying the trading approach.

Market reversals should be understood to avoid trading on the wrong side of the market.

Supply and demand zones are key for identifying entry points in the market.

Demand zones indicate areas of consolidation before upward moves, suggesting buying opportunities.

Supply zones indicate areas of consolidation before downward moves, suggesting selling opportunities.

The strategy advocates for making more on winning trades than losing on losing trades.

Risk tolerance plays a role in how traders handle losses and the number of trades they take.

Low time frame structure confirmation can be used to minimize losses and confirm trade setups.

The strategy may not provide trades every day but is designed for long-term profitability.

The importance of sticking to a strategy and not jumping between different systems for consistent results.

Further learning resources are available for those interested in deepening their understanding of the strategy.

Transcripts

the only way that you can become a

consistently profitable Trader is to

have a trading strategy that has a

positive expected outcome by far the

biggest reason that Traders lose is

because they don't build a strategy they

run into one of two problems first off

you might have no strategy at all which

means you will just be taking random

trades meaning some will win some will

lose but there's no backing to them and

there's no way to build a statistical

Edge and this random sporadic trading

style is not going to let you win now

the other problem might be strategy

popping where you find a good strategy

you come across it and you trade it for

a little bit but then eventually you

start running into losses and instead of

just working through the losses you just

give up on that system entirely move on

to another one and repeat the same

process jumping from system to system

until eventually you get too frustrated

and give up so it's a lack of strategy

that makes Traders lose and it is only a

strong trading strategy that can save

you from the downfall that most Traders

run into so in this video I'm going to

lay out a day trading strategy for you

which will be the only system that you

need to start generating profits in the

market now this system is going to be a

purely price action focused system which

means we won't be using any indicators

and all of our attention and focus will

be on the charts charts are the most

direct way to look at the markets

because they show us exactly what price

is doing without any interference we

will also be keeping things incredibly

simple which means we won't be using any

fundamental analysis so no data no

politics no economics will come into the

picture this is purely chart work now

when we're trading we are guaranteed to

lose some of the trades we take because

we know that we're going to lose a

certain portion of the trades that we

take the best way that we can maintain

profitability long term is to actually

make more money on the wins than we lose

on our losing trades so that's the

approach we're going with in this system

you'll see me tie this in when we get

into the actual analysis so Simplicity

and a strong balance of those profits

and losses is what this system is all

about let's get to it the first thing

you need to be able to do with this

strategy because it's price action

focused is read the direction of a

market now we obviously need to know

whether a market is going down or up so

that we know whether we should be buying

or selling all right so we're going to

look at structure from a high and low

format we're not going to use trend

lines or indicators or anything else

what we are looking for simply when

we're looking for Trends in a market is

is the market making lower lows and

lower highs or is the market making

higher highs and higher lows if the

market is making lower lows and lower

highs this is a downtrend and throughout

a downtrend we should only be looking to

sell but if a market is making higher

highs and higher lows like this Market

here this is a market where we should

only be looking to buy so to show you

how to correctly Mark highs and lows in

a market we will start from this point

now from here we've actually formed a

low in the Market at this level so this

is going to be our low low then we

formed a higher high because the market

High here was higher than the previous

one now this higher high when this

prints actually validates this higher

low because until we actually make a new

high over this level the market could do

whatever it wanted to do within this

range and it wouldn't yet be seen as a

viable valid structure point for this to

become validated as a low we do have to

see this new high formed following that

then once we formed this High just here

at this level we would then see the

formation of a higher low but this

higher low once again wouldn't be

validated until this region when we go

to break now once we break into new

highs and print the next higher high

that validates this higher low as the

next significant leg in the trend now as

long as the market stays Above This

level from this point onwards the market

is going to continue to be in an uptrend

of course it will form new higher lows

in the trend

and then the same rule will apply

providing the market stays Above This

level buys will remain valid okay now

eventually the markets will reverse

we'll discuss this in just one moment

but trending structure and understanding

whether we are trending down or up based

on the high and low structure of the

market is the first and biggest step in

this trading system being a price action

focused system structure is incredibly

important a question you might be asking

is why am I viewing the structure like

this for example example where I'm

seeing these larger movements and why am

I not considering each of these tiny

little movements that happen within now

it would be incredibly valid to say that

there are smaller Trends taking place

within the larger Trend that we're

looking at but in order to keep the

market relevant we should remain at one

time frame and view structure as larger

waves so rather than marking up every

single small movement within each

trending move we actually just view it

as one larger push okay same on the way

down there will be bearish Trends happen

happening within but we just want to see

that as one pullback same again here

don't worry about every single intricacy

view it as one individual push these

price action concepts are what we call

fractal Concepts which means they work

across all time frames so here for

example we're looking at the hourly now

with this day trading system you'll see

us more so using low time frames like

the 10 minute and 5 minute later in the

video but the concepts are exactly the

same we can view structure on the hourly

the same as we can view it on the weekly

the same as we could view it on the one

minute it really does not matter which

time frames we're looking at the price

action is going to be the same the

concepts that we trade with will be the

same market trends will eventually come

to an end uptrends and downtrends cannot

last forever there will be reversals in

the market which we need to understand

because if we don't understand reversals

we'll be trading on the wrong side of

the market and if we do understand

reversals we can turn these into trading

opportunities so taking a look at the

price action from this point onwards

we've got a higher high a higher low

higher high higher low higher high now

you can see at this point just here we

broke through the higher low now this

would then be a lower low okay so this

is a point where we've shifted from

higher highs and higher lows into a

lower low now following on from a break

into a lower low we see a lower high

then we see a new lower low we see a

lower high and so on and so on and so on

okay you're seeing this trend continue

through so marking the structure from

the high we've got lower low lower high

lower low lower high lower low lower

high lower low lower high lower low so

we were in an uptrend but when we broke

the structure into that lower low that

kicked off a new downtrend where we then

would instead of looking to buy we would

be focused on selling all right so this

is the core component that you need to

understand about the markets it's just

this Market Structure Theory we are only

going to be buying in a market that is

forming higher highs and higher lows we

will only be selling in a market that is

forming low lower lows and lower highs

so that's the theory of Market structure

that's the first thing we need to be

aware of the foundation of everything

we're going to do once we have an idea

of the direction the Market's going in

whether it's an uptrend or a downtrend

the doors are then open to find actual

trading opportunities and to do this

we're going to use a concept called

supply and demand to explain what supply

and demand is real quick the markets are

driven by a battle between buyers and

sellers when there are more people

buying than selling the markets will go

up when there are more people selling

than buying the markets will go down now

this generally happens because of demand

okay so if demand is high for an asset

the market prices will appreciate

because people want to buy an asset

they'll be willing to pay more for it

when demand is low for an asset the

markets will go down because prices have

to go lower to actually entice people to

pay the prices think of it like this if

you found a car that you really wanted

to buy and it was on the market for

$50,000 but the price went up to 55,000

you might buy it anyway cuz you really

want it now if you did like the car but

you weren't massively interested in it

and the price was $50,000 you might not

want to pay it but if that price goes

down to 40,000 or 35,000 maybe you'll be

enticed to actually buy the car now okay

pretty much the same exact Theory here

we're just looking at different assets

so when the price is going up in the

Euro USD Market that just means that

people want Euros for specific

macroeconomic reasons so when the demand

is high markets will go up when demand

is low markets will go down now I've

explained that to you so that you can

understand the theory behind what I'm

about to show you which is supply and

demand zones following on from the

theory of supply and demand that I just

explained I want to show you now how we

can translate this over to the charts

this comes in the form of zones so we

have demand zones and we have Supply

zones a demand zone is an area of

consolidation which is just an area

where the Market's gone sideways before

a large upward move a supply zone is the

same an area of consolidation before a

large downward move demand zones take

place in uptrends Supply zones take

place in downtrends and the theory is

always to buy from demand and sell from

Supply now the reason that we see demand

zones as a good place to buy from is

because if we consider what's happening

in this market the Market's going up

that means that people want to buy the

fact that we saw a large push from this

consolidation from this demand Zone

shows us that this was seen as a good

price to buy from so we can then assume

if the market comes back to this level

Traders are going to see this as a

discounted price to buy from again we'll

see a new influx of demand and new

buying leading us into new highs so the

concept is to wait for pullbacks into

demand zones and buy once the market

retests them now for Supply we're

looking at the opposite in a market

that's moving in a downtrend there's an

excess of Supply so demand is not strong

enough and people who have the asset are

going to have to sell it off at a lower

price in order to induce people to

actually enter the market and encourage

people to get on the other side of their

trades so in a downtrend a supply zone

or a consolidation before a large

downward move is going to be seen as a

premium price to sell from so if the

Market's able to get up to here sellers

are going to be happy to sell their

assets because they are getting a better

price than they would be if they were

selling down here this means if we were

seeing the market move in a downtrend we

would wait for a pullback into a supply

Zone and then sell okay so this is the

theory of demand and Supply this ties

directly in with Market structure and

these demand zones and Supply zones are

exactly where we're going to be getting

into our trades here here's a real

example of a demand Zone and how we

would plot it on the chart and how we

would trade it so to begin with we can

see the market here is in an uptrend

okay we're forming these higher highs

and higher lows so the market is clearly

in a phase where we would be looking to

buy now from this point onwards if we

wanted to buy this Market we would use

demand zones to do that to mark on a

demand Zone we just need a tool that's

going to show us a box I use this

rectangle tool and we just want to Mark

a consolidation before a large up move

so here we see there's been a large up

move here we see there was a

consolidation so we had a push-up then

the market moved sideways that's the

consolidation then we have another

push-up so it's this area here that's

going to be the demand zone now the rule

that I like to use to mark my supply and

demand zones is the last candle before

the impulse so an Impulse is just a prot

trend movement in the market like this

the last candle before it is just going

to be whichever the final consolidation

was before we see a push away okay so

this one here we have Wix either side

it's a indecision candle it's the last

candle before the impulse when the

market returns into this demand Zone we

would then look to buy as we just stated

because this is seen as a discounted

price we know that buyers are in control

of this Market but people might not be

happy to buy up here so this demand Zone

which is where lots of buying took place

before is definitely going to be seen as

a good price to buy this asset so once

the market returns to this level we

would look to buy a simple trade example

using this would look just like this we

we have our stop loss below the Zone we

have our entry on the demand Zone and

our Target would then go up towards the

highs okay so towards the next higher

high the previous higher high that was

formed because we know if this Market is

uptrending it should continue on through

and form a new higher high so targeting

the previous high is a very safe way to

get into a trade as you can see this

trade would have played out for

2.77% in profit okay which is obviously

a very nice profitable trade to take now

moving on to the next move we had a new

higher high form which would mean we

would once again look for a demand Zone

if we use our demand Zone tool just here

we can Mark out this kind of last candle

before the impulse if we'd have bought

here we would have lost the trade okay

so let's say we had our stop below we

were looking for a trade up to the highs

or further we would have lost this

position because the market traded into

the demand but then just traded all the

way through it however this loss would

have then been a 1% loss take a look at

the buy we just took that's a 2. 77% win

so after taking these two trades you're

still going to be up

1.77% you can see how by weighing the

risk reward by winning more on our

winning trades than we lose on our

losing trades we stay afloat and we

balance those profits and losses very

well okay now this also leads us on to

the next thing which is by forming this

lower low we have obviously instigated a

market reversal so what we've actually

done by forming this low here is take

away any opportunity to buy in the

future and we've now instead shifted

into sell selling okay now if we take a

look at the Zone just here we will see

we have a clear Supply zone so now that

we formed a lower low we would use the

supply as our selling area all right so

what we would do is place our sell order

on the Zone our stop loss above the high

and then our Target down into the recent

low which would be just about here

tackling this low right so now you can

see this trade is a 2.97%

position now this highlights the

importance and the beauty of the risk to

reward system that we've developed as

I've already discussed I want to make

sure that we're winning more on our

winning trades than we lose on our

losing positions and over those three

trades where we had two wins and one

loss the total net profit coming out at

the end would be

4.74% this is because the wins that we

take are almost three times bigger than

the losses so even if we're losing half

the trades we take or even more than

half the trades we take we will still be

profitable due to the fact that we're

making more on our winners than we lose

on our losers it's very important

element of the system and it's one of

the easiest ways that you can get

profitable by bringing this in you'll

also notice that those three trades that

we just took all look very similar they

follow the exact same format meaning

they're easy to consistently apply to

the markets so now the format for our

trades is very simple we are looking to

find the trending Direction obviously in

this instance it's now bearish because

we're forming lower lows and lower highs

then we want to identify the open Supply

zones and we use these Supply zones for

our selling entries we put our stops

over the high and our targets down into

the recent lows and we just look to

rinse and repeat this process until the

trend turns on us you can see here we

get a tap in and on the way through to

making a new lower low we get a 3.58%

win now we can look for another Supply

last candle before the impulse I'm going

to be using this one here we want to

have selling order on that level we have

our targets down into the low and then

for our stop loss we always want to make

sure our stop loss is clearing any

significant highs so we put our stop

loss Above This high now this for me

this trade is not a high enough risk

reward for me to risk money on so I'm

generally going to be looking for 2.5%

or more for a win just because I don't

want to risk $100 to make only 1994 back

I want to be looking to make $250 back

for every $100 risk okay but this setup

is still valid so let's just see how it

plays

through you'll see we get a win there

nice and simple because we're just

following the trend it's a very easy way

to trade so again we can follow the same

process using this last candle before

the impulse we can Mark out the swing

low and we can set up a new position

which is going to be selling from Supply

stop above the high targets down into

the low you can see that this one

actually would have returned a bit more

profit but because we didn't put the

stop over this high it was stopped out

now these Wicks are going to happen

sometimes and they will lead you to lose

trades but let's just take a look at the

performance here we have a 2.97% win we

have a 3.58% win we have a potential

1.94% win and then this one which could

have been a win if I had put my stop a

little bit higher would have been a 1%

loss for me in reality so even then we

are achieving a significant amount of

profit we've made over 7% here between

three wins and one loss which means we

could actually lose three or four TR in

a row and we'd still be up enough profit

to pay us thousands of dollars when

we're trading with funded capital and

look eventually the Market's going to

reverse on you okay when it does you're

going to be stopped out of your trade

and you will lose a position but that

will just open up the doors to new

opportunity where you can start trading

the market the other way so for example

in this market where we've started to

see the market making new highs we could

instead now tackle Buys so we could

focus on demand zones and we could use

our demand Zone entries stop losses

below the lows and we could look for

trades to the upside okay so we could

look to continue the trend to the upside

from this

point as you can see the trade gets

tapped in and we start moving higher

because we've shifted the direction now

once again so when the Market's in a

downtrend we just trade it for as long

as we can and take advantage of as many

opportunities as possible and when the

market shifts back into an uptrend we

just look to take advantage of each of

the up moves until it once again

reverses on us this is not a system that

tries to win every single trade because

that's not possible anyway this is just

a system that you can use to take

advantage of trending movements while

they occur and by the time the market

reverses you will be out with a nice

healthy profit every Trader has what we

call a risk tolerance and this is a

completely personal thing your risk

tolerance is how well you can handle

taking a losing trade or running through

a streak of losses some people are

completely unfazed by losses which is

great that's the ideal way to trade that

way you can follow out the statistical

Edge and you don't need to worry about

one or two or three losses because you

know you're going to make money long

term but for other people with lower

risk tolerances you might even though

you know a system works have a hard time

holding out through two or three losing

trades in a row so if you want to

minimize the losing streaks there is

something you can do a little simple tip

I'm going to show it you now so if we

lead back to this setup that we looked

at previously we see the market came

into a supply Zone after forming a lower

low and then we had a new selloff now if

you want to confirm that these offs are

indeed very likely to happen you can use

what we call low time frame structure

confirmation so I actually call this the

standard confirmation it's just a

completely boring name I gave to it what

it is is structural confirmation or a

change in the market structure that

looks like this so in a downtrend we

want to see a market shift from higher

highs and higher lows into lower lows

and then we look to sell the lower high

so in the standard confirmation setup we

want to see this happen and then we want

to sell from this area here okay now if

we consider this is on the 10-minute

time frame the trend we're currently

looking at and the market structure

shifts to the downside or happening on

the 10-minute time frame the whole setup

the supply Zone everything's formed on

the 10-minute time frame so what we

would do from this point is once the

market approaches the supply Zone we

would go down to a lower time frame so

for example let's go down to the 2

minutes okay now by going down to the

two minute time frame we now get a

deeper insight into the two-minute Trend

the smaller Trend within to Mark out

this 2minute Trend we've got a low

higher high higher low higher high

higher low higher high higher low higher

high equal low then we have this higher

highight just here from that point we

failed to make any new highs and instead

we actually came down and broke into new

lows okay so this is the change in the

trend this is the first indication that

we're shifting into lower lows so this

is that standard confirmation that we

just mentioned right if you remember

what we said we want to see see that

shift then we want to sell the pullback

that's the selling point which in this

instance would be the pullback into this

Supply so we have a supply Zone just

here it's that last candle before the

impulse to the downside that would be

where we want to sell the market so we

would place our selling order on that

zone our stop loss would go above the

high and then our Target would go down

into the low right so that would be our

Target now if we allow this trade to

play out you'll see we trade back into

that Supply then then we get the sell

off all the way down to our Target so

what we've actually done here is use

Market structure to make sure the lower

time frame agrees with the higher time

frame that 10-minute time frame which in

this instance for day trading would be

our higher time frame was bearish now

we've actually used the two-minute Trend

to see that the 2minute time frame has

also agreed that it is bearish which

means if we sell now we have full

agreement across all time frames meaning

we have the highest probability setup we

essentially use confirmation in the form

of low time frame structure to validate

the trade and tell us Yep this trade is

good to go if you use this format you

are going to lose less trades and the

trades you do take will be bigger you

can see we were actually able to dial

the stop loss in because we were trading

from confirmed structure so we can put

our stop Above This High instead of

having to put it all the way above the

previous high that means that I believe

this was a 3.58% trade before this would

now be a 4.76% trade so we make around

1.2% more just by following this format

however do be warned you have to kind

pick your poison here while you will

avoid a lot more losses you're also

going to take a lot less trades if we

consider the example previous to this

right we had a trade into this Supply

the confirmation didn't happen here so

this would be a missed opportunity so

the 2.97% you made there that just

wouldn't exist you'd have missed that so

if you're a Trader with a good mindset

and reasonable risk aversion and you

don't mind taking losing trades or

losing streaks because you know the

statistical Advantage will make you

money long term then I would just trade

with the normal sell limits of on the

zones as we mentioned but if you're a

Trader who gets a little bit more

stressed out about losses and you want

to minimize the chance of running into

losing trades this is a great way to do

that but it will mean that you are going

to miss some setups that otherwise you

would have caught so in order to win as

a Trader we need to have a strategy

something we can consistently follow a

set of rules and a process that we can

apply every single time we come to the

charts and all of the trades we take

should look similar we should be able to

explain the exact Concepts and the exact

reasons behind every trade because if

our trades come under the confines of a

strategy and a system it means they are

repeatable which means it's easy to stay

consistent and we can use the

statistical advantage of winning more on

our winners than we lose on our losers

to make money long term so some final

notice this system is only going to win

around 50% of the time sometimes the

markets will get into a choppy range and

you will be stopped out two three four

or five times in a row it only works in

trending markets but fortunately the

markets do trend quite a lot of the time

and when they do multiple opportunities

will present themselves as you've just

seen so we can take advantage of the

markets throughout every step of a trend

this strategy along with any other

trading strategy will not give you

trades every single day sometimes you

will be waiting for a few days maybe

even a week or two where there are no

viable setups for you so I want you to

remember that so you don't get impatient

because if you do just wait for the

setups to form you will make money long

term if we think back to the start of

this video it's messing up your

application of the system jumping from

strategy to strategy and all of this

other stuff that actually causes you to

take the losses and lose control of your

trading so I've just given you a crazy

amount of information here but there's

still a lot more to learn so now you've

got two options number one head over to

my YouTube channel and start digging

into the hundreds of free videos that

I've got I teach so many different

Market Concepts in incredible detail

these videos alone will give you massive

amounts of information that you can use

to become profitable and number two if

you like what you see and you want to go

deeper with this you want to get all of

my trades my personal priority support

daily analysis videos and my full

30-hour trading course teaching you

everything you need to know about risk

management macroeconomics technical

analysis trading plans back testing

journaling you name it then click the

top Link in the description and that

will take you through to that you'll be

able to see some reviews some results

because this stuff really works that's

the fastest way to get winning but if

you don't want to do that just yet check

out this YouTube video this is a great

place to go next we'll build upon the

foundations of what we've already

discussed in this video so I hope you've

enjoyed it I hope you put this strategy

to the test in the markets thank you for

watching and I'll see you in the next

one