Macro Po3 Trades You Should (And Shouldn't) Have Taken This Week

Summary

In this video, the trader breaks down key setups from the week, focusing on the **Macro Power of Three** model for trading. The analysis covers successful trades on Monday and Tuesday, highlighting the importance of liquidity, proper stop placement, and patience. The trader also shares valuable lessons from losing trades, emphasizing that losses are part of the process and trust in the model is essential. Key takeaways include prioritizing session liquidity, avoiding low-probability setups, and refining risk management techniques. The video encourages viewers to learn from both wins and losses to build long-term success in trading.

Takeaways

• 😀 Prioritize liquidity: Always consider liquidity levels before entering trades. This will help filter out low probability setups, especially when session lows are close to your stop loss.
• 😀 Trust your trading model: Even after losing trades, trust your system and stick to the strategy. Losses are part of the process, and consistency over time will lead to success.
• 😀 Understand dealing ranges: A dealing range helps frame price action for trades. Focus on identifying a protected low when looking for bullish setups and a high for bearish setups.
• 😀 Use the 'macro window' effectively: Look for setups that occur during a defined macro window. This can offer strong confirmation for continuation trades when price manipulates key levels.
• 😀 Avoid setups with tight stop losses near session lows: When your stop loss is too close to session lows, the probability of failure increases, as price may reverse to sweep liquidity.
• 😀 Be patient with setups: Not all setups will work out, but trusting your model and waiting for the right confirmation is critical. Be ready to adjust your stop loss or exit if price moves against you.
• 😀 Always look for price expansion after manipulation: When price runs liquidity or manipulates specific levels (e.g., Asia low, London low), look for price to expand away from those levels for a valid continuation entry.
• 😀 Don't get attached to a 100% win rate: Trading is about making consistent, well-managed trades. Focus on executing your plan rather than aiming for an unrealistic win rate.
• 😀 Recognize and act on SMT (Smart Money Techniques): SMTs are powerful tools. When price action aligns with SMT signatures, these can provide high-probability entry points.
• 😀 Stay disciplined in risk management: Always adjust your stop loss as price moves in your favor, and be prepared to exit the trade if conditions change. Protect your capital to trade another day.

Q & A

What is the 'Macro Power of Three' trading setup?

The 'Macro Power of Three' setup is a trading model used to identify high-probability trades by analyzing key market structures, liquidity levels, and price movements in specific macro windows. It relies on recognizing price manipulation, such as running lows or highs, and then confirming a reversal or continuation using price action and liquidity signatures.

Why is it important to use specific dates, timeframes, and market data in the analysis?

Using specific dates, timeframes, and market data ensures that the setups discussed can be verified and tracked. Traders are encouraged to break down these setups themselves to better understand the model and integrate it into their own trading practices.

What does a 'protected low' mean in the context of the Macro Power of Three setup?

A 'protected low' refers to a price level that is unlikely to be revisited once it is established. This is often identified by price action respecting a significant level (such as a new week opening gap or a key liquidity point) after running sell-side liquidity. It suggests strong bullish momentum, making it a key entry point for long trades.

What role does session liquidity play in determining trade validity?

Session liquidity is crucial in determining trade validity because it highlights where the most significant price movements and market manipulations are occurring. Prioritizing liquidity ensures that traders are not entering trades against major price levels or setups with low probability due to underlying liquidity pools being unaddressed.

What is the significance of the 'SMT' (Signature Market Turn) in trading?

The SMT is a powerful signal that indicates price manipulation, often seen as a divergence between correlated markets (e.g., NASDAQ vs. S&P 500). It suggests that the market is about to reverse or accelerate in a particular direction, making it a key factor in deciding entry points during the Macro Power of Three setup.

How does the trader approach a losing trade in the Macro Power of Three setup?

The trader emphasizes the importance of staying objective after a losing trade. While a loss is part of the trading process, they focus on trusting their model, continuing to take valid setups, and managing risk. The goal is to stay disciplined and avoid second-guessing the strategy, even after a string of losses.

What is a 'spooling macro' and how does it affect trade decisions?

A 'spooling macro' occurs when price initially moves in one direction, then retraces before reversing again in the desired direction. This pattern can signal a potential setup where price manipulates liquidity in one direction before confirming a strong reversal. The trader looks for these patterns to help guide decision-making for entries.

Why is it important to consider both NASDAQ and S&P 500 (ES) when making trading decisions?

Considering both NASDAQ and S&P 500 helps traders understand the broader market context and avoid entering trades that contradict the overall market trend. If both markets show a similar price structure or liquidity manipulation, it strengthens the validity of a setup. In the case where NASDAQ is signaling a setup but ES shows equal lows, the setup may be avoided due to higher liquidity below.

What is the purpose of trailing stop losses in these setups?

Trailing stop losses are used to protect profits once a trade moves in the desired direction. By adjusting the stop loss to key levels, such as the 9:30 opening gap or fair value gaps, the trader aims to lock in profits while allowing the trade to continue toward its target, thereby minimizing risk in case of price reversal.

Why is it acceptable to miss low probability setups in the Macro Power of Three model?

Missing low probability setups is acceptable because not all trades will work out, and the goal is to focus on higher-probability setups. By filtering out low-probability trades, the trader can avoid unnecessary risk and improve the overall consistency of their trading strategy.