The ONLY Time Window You Should Trade (I Wish I Knew This Earlier)

Summary

In this video, the speaker explains how most traders fail not due to a lack of chart reading skills, but because they trade at the wrong time. The key to success lies in understanding time-based ranges, which are specific windows of time where high-probability trades form. The speaker introduces a method of identifying these time-based ranges and discusses how they influence market behavior, liquidity pools, and trade setups. Emphasizing the importance of following a structured approach, the video offers valuable insights for traders seeking consistency and profitability in their strategies.

Takeaways

• 😀 Most traders fail before even placing a trade because they’re not trading at the right time, even if they know how to read a chart.
• 😀 Understanding time-based cycles within the market is the key to successful trading—not just generic market cycles like Asia, London, or New York.
• 😀 The foundation of high-probability trades is rooted in understanding market ranges, whether it's a retracement, reversal, or continuation.
• 😀 A time-based range, such as the one between 112 and 212, forms every day and dictates when to focus on trading opportunities.
• 😀 The market often has buy-side liquidity above the range and sell-side liquidity below it, which helps in identifying potential targets.
• 😀 After taking out the high of the range, look for retracements as potential setups, while also considering risk management for trades.
• 😀 Time-based ranges are important for determining the market’s direction and understanding when to execute trades with the highest probability.
• 😀 Premium and discount levels are key concepts—when the market drops below 50%, it could offer high probability setups, especially if combined with the understanding of internal ranges.
• 😀 Changes in market delivery, such as a break of a rejection block or closing below up-close candles, signal potential price movements and trend shifts.
• 😀 Consistently monitoring the market during specific time windows, like the 112-212 range, helps in planning trades with greater precision and confidence.

Q & A

Why do most traders lose before placing a trade?

Most traders lose because they trade at the wrong time, not because they don't know how to read a chart. Timing is crucial in trading.

What is the key to understanding successful trading according to the video?

The key to successful trading is understanding time-based cycles and knowing exactly when to execute a trade based on time windows.

What role does time play in market analysis?

Time is the most important and repeatable factor in the market. All patterns, including candlestick patterns, depend on time and can only be successful if they align with the right time cycles.

What is a time-based range in the context of trading?

A time-based range is a specific window of time in which price movement occurs, and it's crucial for identifying high-probability trades. This range is predictable and forms daily.

How does a trader know when to enter or exit based on a time-based range?

Traders focus on the formation of a high and low within a time-based range. If the market breaks through these levels, it indicates potential entry points for retracements, reversals, or continuations.

What happens when the market takes out the high of a time-based range?

When the market takes out the high of a time-based range, traders typically look for a retracement or reversal, targeting buy-side liquidity, which is positioned above this range.

What does it mean when a market takes out both buy and sell-side liquidity?

Taking out both buy and sell-side liquidity results in a low-resistance run, meaning the market can move more easily in the direction of the liquidity taken out.

How does the concept of premium and discount affect trade decisions?

The premium-discount concept helps traders identify whether the market is at a favorable price level. For example, if the market moves below a certain price level (50% of the range), it signals a potential buying opportunity.

What should traders do if the market doesn't follow the ideal setup?

Even if the market doesn’t follow the ideal setup (e.g., not dropping below 50%), traders can still consider a trade but should reduce the risk as the trade might not have the same high probability.

How can traders apply time-based ranges to daily trading?

Traders should mark the time-based range on their charts and use it to identify the overall market range. By doing so, they can anticipate whether the market will continue or reverse, and adjust their strategy accordingly.