Mastering The THREE DAY MARKET CYCLE (Stacey Burke Day Trading Strategy)

Summary

This video script offers traders a comprehensive guide to high-performance trading, focusing on developing a winning mindset and establishing effective daily routines. It introduces the 'Four-Step Method to High Performance Trading' and the 'Seven-Step Daily Routine for High Performance Traders', both available as free downloads. The content emphasizes the importance of understanding market timing, leveraging various trading setups, and capitalizing on range expansion opportunities. It also discusses the significance of avoiding major news events and using tools like Forex Factory for economic news. The speaker, Trader Stacy Burke, provides insights on trading strategies, including the 'Playbook', and reviews concepts like opening range, initial balance, and three-day setups to enhance traders' skills and confidence in executing trades.

Takeaways

• 📈 The 'Four-Step Method to High Performance Trading' and 'Seven-Step Daily Routine for High Performance Traders' are available as free resources to help traders develop mindset and routines for increased confidence and execution in live trading environments.
• 🎯 Traders should focus on developing habits and discipline through daily routines and mindset training to achieve a winning mentality.
• 🌐 The importance of understanding different time frames and the three levels that every trader has each day when they come to the markets is highlighted, emphasizing the significance of the opening range and initial balance.
• 📊 The significance of avoiding major news events when trading is mentioned, as these events can cause significant market volatility and affect trading strategies.
• 📚 The concept of 'Day Zero setups' is introduced, which involves identifying potential range expansion opportunities based on peak formations and consolidation patterns.
• 📈 Traders are advised to look for 'asymmetrical risk-reward' opportunities where they can risk a smaller amount and potentially gain a larger return, such as risking 15-20 pips and targeting 50-300 pips.
• 🗓 The video emphasizes the importance of timing in trading, including the start of a new month, which is a significant timing cycle that traders should be aware of.
• 🌟 The speaker, Trader Stacy Burke, provides insights into various trading scenarios and strategies, including parabolic trend trades, three-session setups, and day zero setups, to help traders identify high-probability trade setups.
• 📉 The script discusses the use of the 'Universal EMA' from The Playbook to target asymmetrical risk-reward and the importance of understanding market behavior in relation to this indicator.
• 🚫 The importance of not trading before or during major news events is reiterated to avoid high volatility and unpredictable market movements.
• 📝 The closing price is identified as a crucial reference point for traders, and its role in establishing market boundaries and potential trade opportunities is explained.

Q & A

What are the two free downloads mentioned in the video for traders to enhance their performance?

The two free downloads mentioned are 'The Four-Step Method to High Performance Trading' and 'The Seven-Step Daily Routine for High Performance Traders'.

What is the main focus of the 'Four-Step Method for High Performance Trading'?

The 'Four-Step Method for High Performance Trading' focuses on developing the mindset and routines to increase traders' confidence and their ability to execute their trading edge in a live trading environment.

How does the 'Seven-Step Daily Routine for High Performance Traders' help traders?

The 'Seven-Step Daily Routine for High Performance Traders' is an audio program designed to help traders bulletproof their day-to-day habits and discipline, and develop a winning mindset.

What is the significance of the opening range, initial balance, and news calendar in the trading playbook?

The opening range, initial balance, and news calendar are crucial elements in the trading playbook as they help traders understand market behavior, anticipate price movements, and avoid major news events that could impact trading strategies.

What is a 'day Zero setup' in the context of the trading playbook?

A 'day Zero setup' refers to an opportunity where a box or peak formation forms, indicating a potential range expansion opportunity. It is a measured distance of a larger template, targeting asymmetrical risk-reward.

What does the speaker mean by 'asymmetrical risk-reward' in trading?

Asymmetrical risk-reward in trading means that the potential profit from a trade is significantly larger than the potential loss. For example, risking 15 to 20 pips to target 50, 100, or even 300 pips as a profit.

What is the importance of the 'first Green Day' and 'first red day' in the trading playbook?

The 'first Green Day' and 'first red day' are significant because they can indicate potential breakouts or range expansions, providing traders with opportunities to enter the market with a favorable risk-reward setup.

How do traders use the concept of 'three-day setups' in their trading strategies?

Traders use 'three-day setups' to identify patterns that may lead to a range expansion or a significant market move. These setups involve analyzing the market's behavior over three consecutive days to predict future movements.

What is the significance of the 'closing price level' in the context of the trading playbook?

The 'closing price level' is significant as it serves as a reference point for traders at the start of a new trading week. It helps in establishing the opening range and can influence the market's behavior as it auctions back and forth during the week.

Why is it important for traders to avoid major red news events according to the video?

It is important for traders to avoid major red news events because these events can cause significant market volatility and unexpected price movements, which can lead to increased risk and potential losses.

What does the speaker mean by 'parabolic trend trades' and 'parabolic short squeezes'?

Parabolic trend trades and parabolic short squeezes refer to trading opportunities that occur during rapid price movements or 'parabolic' rises or falls in the market. These can present high-reward trading setups for those who can accurately predict and time their trades.

How do traders use the concept of 'low hanging fruit' in the trading playbook?

'Low hanging fruit' in the trading playbook refers to easy and relatively low-risk trading opportunities that present themselves, often after major news events or market movements, allowing traders to capitalize with minimal stress.

What is the significance of the 'first bar trade' on major red news days?

The 'first bar trade' on major red news days is significant because it can trap volume and create a momentum opportunity. Traders can use this to their advantage by entering the market right after the news release, targeting quick profits.

What does the speaker emphasize about the importance of timing in trading?

The speaker emphasizes the importance of timing in trading by highlighting significant timing cycles such as the beginning of a new month, new trading week, or even the start of a new 15-minute candle. These timing cycles can provide crucial entry and exit points for trades.

How can traders benefit from understanding the larger market templates and geometrical structures?

Traders can benefit from understanding larger market templates and geometrical structures by identifying potential range expansion opportunities and asymmetrical risk-reward setups. This allows them to make more informed trading decisions and target significant profit opportunities.

What is the purpose of the 'Universal EMA' mentioned in the video?

The 'Universal EMA' or Exponential Moving Average is a technical indicator used in trading to smooth out price data and highlight trends. It helps traders identify overbought or oversold conditions and potential reversal points in the market.

Why is it important for traders to focus on trading setups rather than chasing price action?

Focusing on trading setups rather than chasing price action allows traders to make more strategic and calculated decisions. It helps avoid emotional trading, reduces the risk of impulsive decisions, and can lead to more consistent and profitable outcomes.

What does the speaker mean by 'keep it simple' in the context of trading?

'Keep it simple' in the context of trading means that traders should focus on the fundamentals, stick to proven strategies, and avoid overcomplicating their trading approach. This can lead to better decision-making and improved trading performance.

Outlines

00:00

📈 High Performance Trading Strategies

The speaker introduces two free downloadable resources: 'The Four-Step Method to High Performance Trading' and 'The Seven-Step Daily Routine for High Performance Traders'. These resources aim to develop a winning mindset and disciplined habits. The video also serves as a reminder for new viewers about the comprehensive trading education provided in the channel's playlist. The speaker, Trader Stacy Burke, plans to review and potentially update course materials, focusing on concepts like time frame trading, market balance, and the significance of opening ranges and initial balance in trading strategies.

05:02

📊 Understanding Market Dynamics and Trading Opportunities

This paragraph delves into the intricacies of market behavior, discussing the importance of timing and reference points such as closing prices. It outlines the significance of the opening range, initial balance, and the impact of news on trading. The speaker emphasizes avoiding trades during major news releases and the concept of 'day zero' setups for potential range expansion opportunities. The video also covers various trading scenarios, including three-day setups, first green day, first red day, and inside days, highlighting the potential for asymmetrical risk-reward in these situations.

10:05

🚫 Avoiding Major News Impact on Trades

The speaker discusses the importance of not trading before major news events and using the previous week's close as a reference point. The paragraph provides examples of best trade candidate opportunities, particularly focusing on a three-session setup involving other time frame traders. It also explains how to use the Universal EMA from 'The Playbook' for potential profit targets and the importance of exiting trades before major news to avoid uncertainty and risk.

15:06

📉 Trading Techniques and Market Behavior Post-News

The paragraph explores specific trading scenarios that occurred during the week, focusing on the behavior of the market post-major news releases. It discusses the strategies for entering and exiting trades based on market movements and the significance of timing levels and price behavior. The speaker uses examples from the Dow Jones 30 and West Texas oil to illustrate profitable trading opportunities, emphasizing the importance of understanding market signals and capitalizing on them.

20:06

🌐 Global Economic News and Its Influence on Trading

This section discusses the impact of global economic news on trading, highlighting how to use resources like Forex Factory to stay informed about major news events. It explains the importance of timing in relation to news cycles and how to map out trading strategies accordingly. The speaker also touches on the significance of the closing price and how it serves as a reference point for market movements in the new week, using the example of the Japanese Yen to illustrate the point.

25:07

📊 Leveraging Market Templates for Asymmetrical Risk-Reward Opportunities

The speaker emphasizes the importance of understanding market templates for identifying asymmetrical risk-reward opportunities. The paragraph discusses the concept of 'day zero' opportunities, peak formation highs and lows, and consolidation opportunities. It also references Peter Brandt and classical charting to highlight the significance of larger geometrical structures in trading. The speaker illustrates these concepts with examples from various trading sessions, including the Asian session and after major news releases.

30:08

📈 Capitalizing on Range Expansion and Market Signals

This paragraph focuses on the concept of range expansion as a signal for market movement and the importance of not chasing candles but rather waiting for the setup within the larger geometrical structure. The speaker provides examples of how the market has broken higher and the potential for parabolic opportunities, especially during the London session. The video also discusses the significance of the opening range and initial balance in setting up potential trade opportunities.

35:09

🎯 Identifying and Executing High-Probability Trading Setups

The final paragraph wraps up the video by emphasizing the abundance of high-probability trading opportunities throughout the week. The speaker advises traders to keep things simple, avoid chasing price action, and focus on trading setups that offer the best risk-reward ratios. The video concludes with a reminder to wait for major news releases and to stick to the 'rinse and repeat' opportunities that present themselves regularly in the market.

Keywords

💡High Performance Trading

High Performance Trading refers to strategies and practices aimed at optimizing a trader's execution and decision-making processes. In the video, this concept is related to developing a mindset and routines to boost confidence and effectiveness in live trading environments, as discussed in the four-step method.

💡Mindset

Mindset in trading refers to the psychological and emotional state that influences a trader's decisions. The video emphasizes the importance of developing a strong mindset to handle the pressures of live trading and to consistently execute trading strategies successfully.

💡Routine

Routine refers to the daily practices and habits that a trader follows to maintain discipline and focus. The seven-step daily routine mentioned in the video is designed to help traders establish habits that support high performance, such as regular analysis and review of market conditions.

💡Playbook

The Playbook in trading refers to a collection of strategies and setups that a trader uses as a guide for making decisions. The video mentions a Playbook that includes templates, timings, and price behaviors to help traders identify the best trade setups.

💡Three Levels

Three Levels in trading refer to the different price levels that traders monitor each day: the high, the low, and the closing price. The video discusses how understanding these levels helps in identifying potential market movements and setups.

💡Range Expansion

Range Expansion is a market movement where the price extends beyond its recent trading range. In the video, range expansion is discussed as an opportunity for traders to capture significant price moves, particularly when the market breaks out from a consolidation phase.

💡Asymmetrical Risk Reward

Asymmetrical Risk Reward refers to trading setups where the potential reward significantly outweighs the risk. The video emphasizes targeting trades with high reward potential relative to the risk taken, such as risking 15-20 pips to gain 50-100 pips.

💡Parabolic Move

A Parabolic Move in trading describes a rapid and significant price movement in one direction. The video details how recognizing parabolic moves can help traders capitalize on large, swift price changes, such as those observed in gold trading.

💡Timing Cycles

Timing Cycles in trading refer to specific times when market movements are more likely to occur, such as the start of a new trading day, week, or month. The video highlights the importance of these cycles for planning trades and understanding market dynamics.

💡Major Red News

Major Red News refers to significant economic events or announcements that can cause substantial market volatility. The video advises traders to avoid entering trades before such news releases and to use these events as opportunities for high-impact trades.

Highlights

The Four-Step Method and Seven-Step Daily Routine for high performance trading are free downloads aimed at developing mindset and routines to increase confidence and execution ability.

The importance of understanding different timeframes and the three levels every trader has each day when they come to the markets.

Discussion on how markets can expand range on the upside or downside, creating initial balance and potential trading opportunities.

The significance of avoiding major red news and its impact on trading strategies.

Explanation of three-day setups, first green day, first red day, inside days, and day zero setups for potential range expansion opportunities.

Targeting asymmetrical risk-reward in trading by risking 15-20 Pips and targeting 50-300 Pips, as illustrated with Gold's performance.

The concept of 'day three longs' and 'day three shorts' in the market and the importance of understanding session trading.

The significance of the opening range, initial balance, and news calendar in trading strategies.

How to use the Playbook to find the best setup and daily setup template for the session being traded.

The role of timing in trading, especially at the beginning of a new month, and its importance in establishing market boundaries.

Using Forex Factory for major economic news and how it can help map out trading opportunities for the week.

The reference point for closing price and its significance when the new week starts.

The importance of not chasing candles and understanding market boundaries established by larger geometrical structures.

Differentiating between parabolic opportunities in each of the three sessions and the concept of 'free cash Friday'.

The method to identify best trade candidate opportunities using the closing range of the week and three-session setups.

The approach to trading during major red news and the strategy of being out of the market with profits locked in before such events.

The significance of the closing price in establishing auction levels and boundaries for market movements.

The concept of 'low hanging fruit' trades and how they offer stress-free opportunities with significant return on risk.

The strategy of keeping trading simple, focusing on setups, and avoiding chasing price action for better performance.

Transcripts

the four-step method to high performance

trading and the seven-step daily routine

for high performance Traders are both

free downloads the four-step method for

high performance trading is about de

developing the mindset and the routines

to increase your confidence and your

ability to execute your trading Edge in

a live trading environment constant

progress seven-step daily routine for

high performance Traders is an audio

program download designed to help

Traders bulletproof their day-to-day

habits discipline and develop a winning

mindset again the link is in the

description box below they're free

downloads let's get started just

reminding Traders if they're new to this

Channel or if this is the first time

you've seen this video If you go to this

playlist everything you need is in this

playlist as it is titled we go over the

templates the timings the levels the

behavior of price this will help to

bulletproof your understanding of the

best trade setups in the Playbook again

these are free videos on the YouTube

channel to support and enhance the

skills and the development of your

trading prowess within the Playbook

itself everything you need is in this

playlist Trader Stacy Burke from Stacy

Burke trading today I'm going to be

reviewing uh a couple of Concepts uh I'm

going to try and do an extended video

that I'll uh put inside of the course

the Playbook and and hopefully be

updating some material very shortly uh

but I want to review some things today

that will hopefully cement things a

little clearer now we've talked about

the importance of other time frame

Traders the three levels that each and

every Trader has every day when they

come to the markets and I talk about

when the week starts on our Monday that

price begins to auction from our Clos

closing price level now we can see

markets pump up and expand the range on

the upside we this could be a Monday we

can see the markets dump down on a

Tuesday and expand the range on the

downside and that can create our initial

balance that's one type of scenario a

day one day two we can see a market that

stays above closing price on our Monday

and breaks higher on day two making

higher highs and still be above closing

price level but eventually that will

form a box whether that's a Monday

Tuesday Wednesday box that gives us a

lower low for a

potential pump and dump opportunity

that's a 3-day setup that's one type of

scenario this could also be a three

session setup Asia London makes a lower

low and then the US session goes

parabolic on a day a three session setup

The Playbook we talk about about opening

range initial balance news calendar the

importance of avoiding major red news

we'll talk about that briefly as well

three-day setups first Green Day first

red day inside days three session setups

and day Zero setups a day Zero setup is

an opportunity that can present where we

have a box that forms Peak formation

high peak formation low consolidation

inside for a potential range expansion

opportunity that is a measured distance

of that larger template this is where

we're targeting asymmetrical risk reward

we could be risking 15 to 20 Pips

depending on what you're trading and

targeting 50 100 300 as we saw today on

Gold uh for that measured move

opportunity whereas gold today kept

going and expanding the range for well

over 300 Pips so we've talked about

first Green Day we can get an opening

range an initial balance an inside day

that forms a first Green Day that could

also then become a breakout that breaks

out maybe in the Asian session or

continues in the London window breaking

out of that geometrical structure and

you can get a range expansion depending

on the session that you're trading as we

may see this Market move in range

expansion but it may not offer a trade

opportunity in the US window as we are

still on the front side of this move we

can see markets form

that day Zero template or a box over the

first two or 3 days we can have an

inside day in there as well and we may

eventually see a market make a higher

high and pull back a dump and pump

template for a range expansion we can

see a market pump up and break down

forming a first red day for another

potential parabolic collapse and break

out of a larger geometrical structure

again this larger structure is where we

can Target asymmetrical risk reward so

again we're accelerating into the move

in a range expansion and these are the

types of situations where Traders can

get caught trying to counter Trend a

market that is now going on a measured

move range

expansion we've talked about day three

Longs in the market day three shorts

first red Day first Green Day the inside

day parabolic trend trades three sessing

setups parabolic short squeezes

uh low hanging fruit and first balce

opportunities we will look at some

examples of those specifically from this

week and just to review the weekly

template Monday is day one that is the

opening range of the week Tuesday's day

two Wednesday is day three and the

midpoint range of the week day one day

two day three that resets and becomes

our new day one heading into our closing

range of the week Thursday is day two

and Friday again is day three and the

closing range of our week so Thursday

Friday can establish the boundaries as

we head into our new week so each

instruments going to have a different

type of template my job as a Trader is

to find the template that offers me the

best setup and the best daily setup

template on the day in the session that

I'm trading and as I've mentioned 90% of

my trades are in the US session uh but

this week we had some fantastic

opportunities in the Asian session which

we will look at today reminding traders

that there are some simple parabolic

opportunities in each of the three

sessions as we get to our day three on

free cash Friday uh looking for that

closing range of the week to potentially

offer us some larger parabolic

opportunities and today was the first

day of a new trading month again

reinforcing the importance of timing

from The Playbook the beginning of a new

15minute candle the beginning of a new

hourly candle a 4H hour candle a new day

a new week or a new month and of course

a brand new year these are all

significant timing Cycles obviously the

larger macro Cycles are very important

today the beginning of a new month which

is a new timing cycle I get my major

economic red news from Forex Factory

which you can just go to

forexfactory.com and that shows us

what's on major news released for the

calendar for the upcoming week and you

can potentially map out your week uh for

where we're going to end up on Friday

and we can see how some potential

currency pairs or cross rates will play

out in relation to Major red news or

potentially offer us opportunities as

well as on the indexes gold and oil

depending on what type of news is on the

calendar I just want to remind everybody

that these levels are what every Trader

has coming into the new day now people

have asked me what is the reference

point for closing price um well Friday

for 459 p.m. New York time is the

closing price time now I know that some

markets uh the indexes close at 400 p.m.

uh but they'll there'll be a closing

price in most cases specifically at the

459 p.m. level uh but regardless uh the

significance is having that level when

the new week starts and that's where

price will begin to auction back and

forth from over the course of the week

we can get markets that will trade lower

and that level can act as a magnet now

sometimes we'll see a range expansion

per perhaps on our opening range we may

see Monday pump up and close and close

up higher and the market can continue

higher that closing price level can be

significant but so is the weekly level

as the market trades as it begins its

new trading in the new week this is the

reference point that everything starts

to work back and forth from so when I

make the comment to Traders about not

chasing

candles understanding that until we get

our bigger box set up for either selling

or buying if we indeed have a setup this

level is what is Paramount in terms of

what the market is establishing our

boundaries from in the new week the

absence of major red news being on the

schedule these are the starting times

for these instruments and their

markets uh so we have currencies in gold

and bonds beginning at 8:20 a.m. crude

oil 9:00 a.m. and New York Equity

markets 9:30 a.m. and what that means

what the fugazi means is that I don't

view anything except my three levels and

when these markets open if the markets

have broken outside of those levels and

they open outside of those ranges during

these times then I refer you back to

Dalton Mind Over markets Market profile

understanding when a Market opens

outside of the previous day range in

those timing Windows now if we have

major red news on the calendar and it's

after those opening times that major red

news timing is specific for me to begin

my day I don't trade before the news I

am not in the market during

news uh and that goes for any type of

major red news so I refer you back to

Paul tutor Jones's quote always think of

your entry point as last night's close

now on a Monday uh the last night's

close is the previous close of the week

and if we are looking for a best trade

candidate it's a three session setup in

most cases I want it to involve other

time frame Traders on a Monday which

means that we will have broken or traded

to or through one of the previous days

higher low levels on Monday Traders had

a best trade candidate opportunity on

West Texas oil so remember again we have

our closing range of the week which is

our Friday pink line is our dividing

line between between Friday and Monday

we've traded below closing price level

on our Monday we'll zoom in on this a

little bit closer we've broken outside

of the previous day low of day boundary

that's our blue dotted line the green

line is our closing price level and we

have a market that opens up at 9:00 a.m.

New York time which is our candle just

to the right our 9:00 a.m.

engulfment we can put our Universal EMA

on here from The Playbook

and we would be targeting asymmetrical

risk reward from closing price to the

expanded range low of day for at least

100 or if the market continues to run a

200% expansion of the range as a

potential profit Target if the market

hasn't got there or it starts to extend

in the timing window we can always

follow this up with a trailer to take us

out of the market as it approaches that

level that's a Monday best trade

candidate a three session setup and

you'll also notice if we back this chart

up we have a closing range that started

on Thursday which gives us a three day

template for a reever parabolic reversal

best trade candidate on Monday free cash

Monday now on Tuesday we had major red

news at 8:30 and 10 a.m. durable goods

and consumer confidence 8:30 a.m. and

10:00 a.m. uh New York index is open at

9:30 and that is plenty of time if there

is a best trade candidate to either have

a nail and bail opportunity or to

potentially be in a move that can

capitulate prior to the news or a

currency opportunity if indeed it

presents now the dj30 gave us a first

red day on Monday first red day on page

six in the play Playbook uh sorry page

58 in the Playbook is a day that closes

below the open after a peak formation

High has been made now occasionally we

can have an inside day that gives us a

first red day but it will coincide with

a pump day the main thing to understand

about a signal day is is that it merely

brings our attention to that instrument

and then how does price set up on the

day so first red day is a high of

session high of day selling opportunity

if indeed it presents and on Monday we

had a first red day that made a peak

formation high now remember what I said

about closing price of the week uh the

price auctioned above closing price of

the week Monday is our new week our new

first opening range of the week we

traded underneath of that closing price

on Tuesday before breaking down the

current before the New York session

opens below the current closing price of

Monday so we' made a lower close on

Monday that's the first red day signal

we've pumped up prior to our our us

session opening we've broken down below

closing price and Consolidated but I

want to bring Traders attention to a

couple of things here uh again Paul

tutor Jones's quote about a range

expansion when you get a range expansion

the market is sending you a very loud

clear signal that the market is getting

ready to move in the direction of that

expansion Paul tutor Jones Friday's our

closing range of the week Monday is our

opening range of the week and our

closing price on on Tuesday is also

below Thursday's closing price and we

have 3 days of volume trap so I

mentioned earlier today we have Monday

Tuesday Wednesday 3-day setups we have

Friday Monday Tuesday if we have a 3-day

setup potentially setting up on a

Tuesday day two in our new Monday

Wednesday Friday template if we put our

Universal EMA on here we are inside of

our Universal EMA this is a 15-minute

chart now if Traders enter this trade at

the open at the low of Day level

remember timings levels behavior of

price on the close of the second candle

this is a 5 minute chart this is a 75

pit move in 10 minutes on a capitulation

on day two so I I wanted to point out

referring to Paul tutor Jones we're on

day two we're expanding the range we

have markets that are indica to us that

they are potentially going to expand the

range it's a first red day trade setup

for a range expansion and if we back our

timing up again we have Friday Monday

Tuesday a 3-day setup blowing off in the

direction of that creep a first red day

signal at the New York open and out of

the market minimum of 75 Pips prior to

Major red news obviously if Traders

stayed into that market and held on to

it there was more but they also run the

risk of a market potentially maybe

spiking back up uh so in my perspective

my approach to the markets is to be out

of the market with the money locked into

my account prior to Major red news first

red day trade on Tuesday for a easy free

cash stressfree opportunity on the Dow

Jones 30 if we had projected a range

expansion as a potential Target prior to

Major red news it still took a out of

proximately at the same level for a 100%

expansion of the range that market

continued to do a second full expansion

on the news release but out of the

market in 10 minutes with 75 Pips in a

first red day coil for a parabolic

explosion on Wednesday we had major red

news at 8:30 prelim GDP on Wednesday we

had a high of the week third hour

reversal 1 hour after the 9:00 a.m. open

on West Texas or spot crude this is a

three session setup and even with our

15-minute chart we just have an

engulfment we're out of balance when the

Market opens up at 9:00 a.m. The Market

opens and goes higher and you'll notice

we have uh 1 hour to the high before

engulfing and that starts our new 4-Hour

candle oil opens up 1 hour later and our

4-Hour cycle starts at that 10: a.m.

rotation we have an engulfment a one bar

stop targeting back inside of the range

to where breakout Traders started at

8:00 a.m. and you'll notice again the

pump and dump

template the move that started from the

lows of London is a breakout

pullback continuation to the high so

this Market has broken out on Tuesday

pulled back to that level and as I

mentioned earlier this week Traders will

also notice that that level on day three

coincides with 50% % and so there were

opportunities on the front side of that

move at the beginning of the 8: a.m.

hour for Traders that were looking for

that opportunity this is a 15-minute

chart for the parabolic explosive move

to the high of the week so backing this

up stair stepping again day one day two

day three blowing off in the direction

of the trend a day three parabolic

blowoff and a day 33 session reversal at

the beginning of the new hour and the

new 4-Hour timing cycle and if we zoom

in on our one minute chart once you

understand the importance of timing and

the levels and the fact that this Market

is now out of balance and we're on day

three we have front side and we have our

backside beginning of that new hour

We're on a smaller time frame this

Market is now breaking down at the

beginning of our new hour lower lows

lower highs coiling inside of our EMA

underneath of the breakout level we'll

just highlight this again for Traders

lower lows lower highs before dumping

down to the high of Day level and then

pumping back up and coiling for an

explosive move from the high of Day

level to the low of day breakout level

the 50% level again at where that move

began now we had crude oil inventories

on Wednesday at 10:30 a.m. so in my case

I would have stayed out of this Market

until after inventories were released

were already breaking down we've broken

down to the high Day level we have

inventories being released at 10:30 a.m.

and the point of staying out of the

market until after these releases is

that I have no idea what these markets

could do they could Spike high they

could Spike low they can widen the

spreads uh they could uh do anything

they want now if I'm trading this Market

how could I possibly have any size on

that when there's about to be a major

news release so in my case I wait we've

already our thesises that we've already

locked in the high of the day they pump

it up pump it up pump it up and the new

hour starts the new hour starts and

we're back inside of our coil at the

high of Day level in an already broken

down market after the inventories is

released we have a pump and dump

template into the new hour for the easy

collapse back into where that move

started no stress no heat after the news

one bar stop and an opportunity to

potentially be adding in as this Market

accelerating into that blowoff move we

also had an opportunity on the dj30 uh

low of the week I'll back this up onto

our 15minute chart day one day two our

first red Day short trade and day three

breaking out and expanding the range on

the

downside New York open blows off through

the low of the week taking Traders down

into the low of the week before

engulfing pulling back and jamming back

down into the low of peak formation low

level our new hour starts and we have an

engulfment a pin hammer and then another

pin hammer

engulfment for our entry back in a short

squeeze parabolic setup back not only

through the high of the session the

first hour session but into lower level

shorts from the London window if we just

drag this across in my situation I just

take a projection of the high and the

low as a PO potential profit Target or

the level that is hit first the lower

Peak formation highs that London makes

on the way down are areas where this

trade can

fail and new timing cycle as we get

towards the end of the hour locking in

the

profits as this trade has hit the high

of the session and cleared out those

lower level shorts but an excellent

reversal opportunity session three

session setup uh New York open after

major red news for a parabolic reversal

trade on the dj30 on Wednesday looking

at the Japanese Yen and as I mentioned

earlier in the video I talked about the

closing price of the week so again this

is our Monday Friday dividing area as

the week opens we auction around closing

price the market establishes the opening

range we have a range expansion on the

up

upside and on day two the market

auctions down and puts a lower low on

the downside so we now have our opening

range and initial balance we've expanded

the range on the upper portion of our

closed Friday's closing range and we've

expanded the boundaries on the lower

portion of our opening range as well as

Friday's closing range on the downside a

higher high in a lower low that lower

low now acts as a pump up into our

Monday's closing range level so our our

closing range of the week is our

starting point Monday has put in a

ceiling if you will I call it a ceiling

because price auctions up into that

level and on Thursday we have a

fantastic

opportunity for the short trade in the

Asian session a 3-day setup a pump and

dump template for a range expans

Target on Thursday's Asian session when

we have a market that is offering us

that range expansion opportunity we can

project that consolidation high low

level the volume above Tuesday's closing

price now can act as a neckline for

trapping volume up top into our high of

the week opening range level for a range

expansion opportunity a parabolic range

expansion opportunity in the Asian

window now several Asian pairs offered

this setup uh this is the Japanese Yen

you can go back and look at the same

types of opportunities but this is the

larger template day one day two day

three a day Zero opportunity Peak

formation high peak formation low lower

lows we expanded the range on the upside

expanded the range on the downside we we

now have a pump and dump template coiled

into the open of the Asian session so

traders that are Savvy and they

recognize this template forming and

they're trading the Asian session this

is a fantastic opportunity for a

parabolic opport a parabolic trade setup

that is not coming back in that session

now this pair also offered us lwh

hanging fruit trade after major red news

at the New York open as did the other

pairs uh in

retrospect the some of the other cross

rates offered a much cleaner off

opportunity for the loow hanging fruit

and of course this pair offered a

reversal trade in the third hour taking

uh back the low of Day level and going

parabolic in the Asian session we're

going to look at a couple of different

scenarios that occurred with these pairs

uh but the parabolic blowoff again

looking at the larger template

understanding that the weekly closing

price level we are underneath of that

when the Asian session opens remember

the three levels that everything works

from Traders are looking at candles

everything else look at the larger

templates for these asymmetrical risk

reward opportunities I'll point this out

this is a one bar stop this trade

offered Traders significant return on

risk with zero almost zero probability

of this trade coming back the pound yen

is another pair uh just in similar we'll

just look at this briefly point this out

the trader so again we have our opening

range we just back this up we triggered

highs Longs at the opening range uh

triggering highs of the closing Range

High but if we take our closing price

now and project this across we had an

inside day on Tuesday inside day lower

lows on Wednesday day three lower lows

remember these are not failed breakouts

we not we have not taken out the other

side of range lower low is a range EXP

expansion offering us a pump and dump

coil for a parabolic move underneath of

the closing price of the week so again

recognize that this is an auction level

establishing our boundaries creating a

larger consolidation box price is always

in a

box these are the types of opportunities

that I'm targeting when we get our range

expansion opportunities that we can

project profit targets to for those

breakout trade opportunities on Thursday

we had a great low hanging fruit

opportunity after major red news 8:30

a.m. we had uh Canadian GDP we also had

core pce and unemployment claims uh 8:30

a.m. New York time this Market had

pumped up Monday Tuesday Wednesday moved

higher we're at the high of the week

level on Thursday when our us session

starts we have major red news at 8:30 so

waiting for after the news heading into

our New York window Traders had the

opportunity for a loow hanging fruit

continuation trade loow hanging fruit

page 96 in the Playbook a trend

continuation opportunity on our 5-minute

chart we have a 10 11 Pips stop

targeting 40 to 45 Pips of profit Target

zero heat no stress a low hanging fruit

continuation trade on the reversal on

Thursday day two three session setup so

we have as London and New York blowing

off on the major red news pulling back

into our New York open for the easy

collapse on New York open that brings us

to

Gold uh this is a 30-minute chart and I

want to point something out to traders

that uh regardless of the time frame so

Traders are always asking me can we you

know how well how can I trade a 4H hour

chart because I can't check the charts

how about a can you show us a daily

system an hourly system uh these levels

are the same no matter what time frame

you have on the chart I could have a 1

minute chart an hourly chart a 4 Hour

chart a 30 minute chart um but closing

price high of day low of day high of

week low of week levels are the same

they don't change because of the time

frame so I I want to impress upon

traders that it's about the template and

the type of setups not the time frame

the levels the timings behavior of price

so if we come back to our original

template Friday is the closing range of

the week Mondays day one the opening

range of the week Tuesdays day two

Wednesdays day three and that resets and

becomes a new day one heading into our

closing range of the week so our closing

range establishes boundaries potentially

in our new week for our opening range

and those templates now our closing

range on Friday established a peak

formation low and a peak formation high

that was an outside day that creates a

day Zero potential template that's the

peak formation high peak formation low

consolidation opportunity a zero page 84

in the Playbook and you've heard me

reference Peter Brandt the purpose of me

looking for these larger geometrical

structures is because of the classical

charting range expansion opportunities

that those when they present those types

of opportunities present offer us

asymmetrical risk reward range expansion

profit Target opportunities so coming

back to our original thesis closing

price starts the auction process off for

the week our opening range is an inside

day on Monday the market makes higher

highs on Tuesday our day two it's Paul

tutor Jones says when you get a range

expansion the market is sending you a

very loud clear signal that the market

is getting ready to move in the

direction of that expansion when I

mentioned to Traders don't get caught

chasing candles look for the setup I'm

referring to the larger geometrical

structure not chasing movement of these

candles closing price of the week is

where our auction process begins we've

established our boundaries after Monday

the opening range and initial balance

are in place heading into Wednesday day

three which is why I emphasize the

importance of the opening range and

initial balance for every instrument not

just gold the same setups will apply on

any instrument at varying times whenever

but when these types of opportunities

present they can offer us very very

significant risk risk reward

opportunities we have a market now that

has broken higher above the opening

range on day three on our Wednesday with

a parabolic opportunity for London

session Traders again a session

opportunity and then we had a uh first

bar trade on major red news on Thursday

on uh our news Catalyst opportunity on

Thursday so I want you to go back and

look at this closing price level again

beginning the week we have gone down to

the low of the week we've closed now

above the range from the previous day

we've auctioned lower down first we've

we haven't taken out the high of Day

level we've dumped it down prior to

Major red news our first bar candle

traps volume remember the four types of

candles that I talk about we trapped all

this lower level of volume on the major

red news release core pce we had higher

highs on day two on our initial balance

that higher highs above closing price we

are now closed above closing price not

only of the day but of the Friday

closing price of the week we have a news

Catalyst momentum opportunity and if we

project closing price from low of day

that can give us a range expansion

profit Target in this particular case we

can use the closing price of the week as

a potential Target if we do not get

there as this trade reaches that timing

window expiration we can be looking to

lock in the profits this is a news

Catalyst opportunity coinciding with

closing price and our larger template

day one day 2 day three coiling into a

news Catalyst opportunity on Thursday

day two on the backside heading into

Friday we had major red news coming out

at 10:00 a.m. on Friday but we now have

a market that's broken out of a

consolidated ascending

triangle from the Thursday news Catalyst

heading into our free cash Friday we've

broken higher in London uh dumped down

in Asia uh open of the Year possession

pumped higher we now have a market that

is making higher highs and higher lows

that is a parabolic

template heading into our us session so

prior to our 10: a.m. news release we

have a market that's broken out and uh

9:45 a.m. we have a new news Catalyst

orange news that's taken that trap

volume and collapsed vertically and then

the explosive 10 a.m. a news candle that

goes back inside the high of Day level

so we've got a market that has pumped up

broken down and now establishing a dump

and pump template dump coil explosive

move after major red news we'll blow

this up in a moment we have a first

bounce off opportunity coiled inside of

our EMA in a dump and pump template in a

larger range expansion opportunity in a

parabolic coil now if we zoom in on this

Traders will will see that even if we go

to our we'll just show the first bounce

the first bounce is inside of our EMA

this is 9 minutes after our major red

news so when you understand the template

the larger opportunity the timing after

the news is least it's all systems go

we're back inside of our EMA we are now

targeting a potential move a minimum

back to the high of the day but

potentially now also a range expansion

opportunity and as I mentioned to

Traders on F minute chart we also had a

first bounce so time frames are relevant

if you understand the big picture uh you

can have the confidence to be entering

in and adding into this as this market

now is going on a potential range

expansion even at a minimum of the high

low consolidation from that high of day

low of us session consolidation

rectangle as we are now on top of the

high of the day targeting a full range

expansion of that move so an incredible

opportunity uh every single day this

week we had excellent opportunities and

there were multiple others but in the

interest of time just pointing out

sticking to the basics I'm looking for

the opportunities

that will present for a range expansion

opportunity whether we go for 100% %

Move Free Cash Friday uh where we're

targeting geometrical expansions for

asymmetrical risk reward and

understanding the difference between

chasing candles and scalping gaps and

catching Pips and everything else I'm

looking for the larger template to set

up for potential parabolic opportunities

where I have a 9010 best trade

setup easy low stress rinse and repeat

opport opportunities that show up again

and again and again and as I mentioned

Traders uh the the more you step back

you wait for major red news to be

released stick to the rinse and repeat

opportunities that show up whether there

are three session setups three-day

setups for larger expansions or just

parabolic opportunities in the session

that you're trading for nail and bail

types of Trades but there are best trade

setups in almost every single session

for to five times a week for fantastic

scalable parabolic opportunities keep it

simple Traders 1% better every single

day we'll expand upon this information

but I wanted to emphasize to traders

that every day we had multiple

opportunities for best trade candidates

keep it simple do not Chase candles

don't chase price action focus on

trading setups have a great day and may

the markets go with you