The Only Day Trading Strategy You Need | BLITZ MODEL

Summary

In this video, the creator dives deep into the 'Blitz Model'—a scalping strategy for NASDAQ trading that focuses on executing trades based on the very next 4-hour candle. The model combines institutional order flow, key timeframes, and liquidity patterns, emphasizing efficient setups like previous hourly candle lows, 15-minute stop hunts, and fair value gaps. Key techniques such as understanding candle closures, market time windows, and identifying obvious liquidity pools are covered, offering a high-probability approach for traders to master this scalping technique. The Blitz Model is presented as a comprehensive tool for consistent profitability.

Takeaways

• 😀 The Blitz Model is a scalping strategy that focuses on trading a single 4-hour candle with high probability setups, relying heavily on candle closures, liquidity, and institutional order flow.
• 😀 The key to success in this model is aligning with institutional order flow from higher timeframes (weekly, daily, and 4-hour) to execute trades with higher probability.
• 😀 Counter-trend trading is part of the model but is recommended only for more advanced traders. The focus should primarily be on trading with the prevailing institutional order flow.
• 😀 The AM session should be skipped if there’s no retracement into Asia's range or if the London range is excessively large. The PM session is often more favorable for clean moves.
• 😀 The very next 4-hour candle is the primary focus for scalpers, and predicting whether it will be a distribution candle is the core skill being developed.
• 😀 Three primary factors help determine if the next 4-hour candle will be a distribution candle: alignment with higher timeframe order flow, the candle closure, and premium/discount levels.
• 😀 A distribution candle can be identified when the candle closes at a premium or discount level, indicating that price is likely to move in the intended direction.
• 😀 Using specific formations on lower timeframes (1-hour, 15-minute, etc.), such as running previous lows or forming a fair value gap (FVG), can increase the probability of a successful trade.
• 😀 The best times to focus on trading are during key market windows: 3:00-4:00 AM, 9:45-11:00 AM (New York session), and 1:30-3:45 PM (PM session).
• 😀 When executing a trade based on the Blitz Model, it’s essential to have obvious liquidity draws (such as relative equal highs/lows) and to check for lower timeframe Smart Money Techniques (SMT), liquidity runs, and a change in the state of delivery.
• 😀 The Blitz Model is presented as a complete strategy requiring no additional tools or setups. By focusing on the setup and its components, traders can confidently trade NASDAQ with a higher probability of success.

Q & A

What is the primary focus of the Blitz model in the video?

The primary focus of the Blitz model is scalping using a 4-hour candle distribution strategy. It aims to predict and capitalize on the next 4-hour candle's distribution to maximize trading profits with high probability setups.

How does aligning with institutional order flow benefit scalpers?

Aligning with institutional order flow provides a higher probability of success by ensuring that trades are executed in the direction of the broader market trend. By trading in sync with the higher time frame (weekly, daily, and 4-hour), scalpers can take advantage of institutional movements.

What is meant by the term 'distribution candle' in the context of the Blitz model?

A distribution candle refers to a 4-hour candle that shows clear signs of market distribution, where price moves significantly in one direction. Scalpers use the candle's formation and closure to anticipate future price movements and plan their trades accordingly.

What is the role of the AM and PM session in the model?

The AM session (Asia and London combined) is often avoided when the range is too large or choppy. The PM session, particularly during the New York session, is more favorable because it provides clearer and more predictable price movements.

What are some key factors in determining whether the next 4-hour candle will be a distribution candle?

Key factors include being in alignment with the higher time frame institutional order flow, identifying key liquidity levels (buy/sell side), and observing candle closures that suggest either continuation or reversal. Scalpers focus on the very next 4-hour candle rather than predicting multiple candles ahead.

Why is it important to focus only on the very next 4-hour candle for scalping?

Focusing on the very next 4-hour candle minimizes the need for long-term predictions and keeps the trading approach simple and direct. Scalpers aim to capture quick movements and maximize profit from a single candle rather than overcomplicating the analysis.

How do lower time frame tools, like M15 stop runs and FVGs, aid in executing the Blitz model?

Lower time frame tools such as M15 stop runs and fair value gaps (FVGs) help identify precise entry points within the 4-hour distribution candle. These smaller time frames provide confirmation of market conditions, helping scalpers refine their entry strategies for better accuracy and higher probability trades.

What is the significance of liquidity in the Blitz model?

Liquidity plays a critical role in the Blitz model as it represents where price is likely to move toward. Identifying areas with relative equal highs or lows (liquidity pools) helps scalpers predict where the market will likely reverse or continue, guiding their trades toward these liquidity zones.

What is the 'change in the state of delivery' and how does it impact trades?

The 'change in the state of delivery' occurs when price action shifts from one direction to another, typically seen when a series of bearish candles gives way to bullish movement. This shift indicates a potential trend reversal, which scalpers use to time their entries for higher probability trades.

How can traders use the Blitz model to make predictions on the NASDAQ and E-mini markets?

Traders can apply the Blitz model by using key strategies such as identifying 4-hour distribution candles, observing lower time frame setups (like M15 FVGs and stop runs), and ensuring they are trading in the direction of the higher time frame order flow. By studying market characteristics and liquidity zones, they can anticipate price movements in the NASDAQ and E-mini markets with higher confidence.