Counter Trend-line Break Trading Strategy for Beginners to Advance | Day in the Life

Summary

In this video, Chamilia, a day trader, shares a powerful counter trend line break strategy for trading bearish trends. The method involves identifying a trend line break during a bullish market, waiting for confirmation, and using support/resistance levels to make informed trades. Chamilia provides real-world examples and tips for applying this strategy on any time frame, emphasizing discipline, risk management, and patience. The video blends practical trading advice with personal vlogging, giving viewers a relatable insight into both the strategy and the trader's lifestyle.

Takeaways

• 📉 The core strategy taught is the Counter Trend Line Break setup, used to catch bearish moves after a bullish push.
• 📊 The setup works on any timeframe, but the presenter prefers the 5-minute chart for scalping.
• 🎯 The primary goal for each trade is a 1:1 risk-to-reward ratio, with partial profits secured and a runner left to extend gains.
• 📈 The strategy requires identifying a clear bullish trend with multiple touches along a well-respected trend line.
• 🧱 Support and resistance zones must be marked first, as they provide critical confluence for higher-probability trades.
• 💥 A valid entry requires a strong full-body candle close breaking below the trend line — weak breaks are ignored.
• 🔍 Confluence increases confidence: combining trend line breaks with resistance rejection or support breaks strengthens setups.
• ⏳ Discipline is essential — traders must wait patiently for confirmation instead of anticipating the break.
• ⚠️ Not every setup works; failed breaks can occur, requiring reevaluation and adjustment of trend lines and zones.
• 🔄 If the first break fails, combining a second trend line break with a support break can create a stronger re-entry opportunity.
• 📦 The market often consolidates within ranges, and trend lines inside ranges help signal potential reversals.
• 💰 Risk management is non-negotiable — stop losses are placed above structure, and profits are secured systematically.
• 🧠 Traders should treat strategies as tools in a toolbox, applying the right one when specific market conditions appear.
• 🚀 Consistency, discipline, and trusting your take-profit and stop-loss rules are key to long-term profitability.

Q & A

What is the 'counter trend line break setup' mentioned in the video?

The 'counter trend line break setup' is a trading strategy used to identify a reversal in a trend, specifically when price breaks through a trend line in the opposite direction of the current trend. It is used to trade against a bullish trend after a counter trend line break, often anticipating a bearish movement.

In which market conditions should the counter trend line break setup be applied?

This strategy is primarily used in bearish trends, or when you are looking to trade against an existing bullish trend, anticipating a reversal or pullback into a bearish trend.

What makes the counter trend line break strategy profitable?

The strategy is profitable due to its simplicity and frequent occurrence in the market. The key to success is discipline and waiting for confirmation before acting on the setup, which allows traders to identify profitable opportunities with minimal risk.

What time frame does the speaker prefer to use for this strategy?

The speaker prefers using the 5-minute time frame for trading, as they are a scalper. However, the strategy can be applied on any time frame based on the trader's preferences.

Why does the speaker emphasize discipline in trading the counter trend line break setup?

Discipline is critical because the setup requires waiting for the price to break the trend line with confirmation, which can take time. Being disciplined ensures traders do not jump into trades prematurely, reducing the chances of unnecessary losses.

How does the speaker combine support and resistance with the counter trend line break strategy?

The speaker combines support and resistance zones with the counter trend line break by marking these levels on the chart. If price breaks a trend line at a point of resistance or support, it increases the likelihood of a reversal, providing double confirmation for the trade.

What should a trader do if they get stopped out of a position using this strategy?

If a trader gets stopped out, they should reanalyze the market. The speaker suggests adjusting the trend line and marking new support and resistance zones to find a fresh entry point, combining the counter trend line break strategy with support and resistance analysis for better confidence in the setup.

How does the speaker use a 'one to one' risk-to-reward ratio in this strategy?

The speaker typically aims for a 'one to one' risk-to-reward ratio, meaning they target an amount of profit equal to the risk they take. Once this target is met, they close one position and leave the other as a 'runner' to potentially capture more profit.

What does the speaker mean by 'leaving a runner' in a trade?

Leaving a runner means holding part of the position open after the initial profit target is reached. This allows the trader to capture additional gains if the market continues to move in their favor.

What happens if a trend line break is not strong enough for the speaker to enter a trade?

If the break is not strong enough, the speaker does not take the trade. They look for a full-body candle to close below the trend line, which serves as confirmation that the break is valid and the market may reverse in the expected direction.