The Future Of Day Trading L3: Hard Close (Level 3 Day Trading)

Introduction to Day Trading Remastered for 2022

In this lesson, the speaker introduces the topic of hard closing in day trading and explains its significance.

Understanding Hard Closing

• Hard closing refers to breaking a level on a chart and closing over it.

• There is a misconception that the wick or body of a candle determines hard closing, but it is actually the bottom side of the candle that confirms it.

• Different colors are used to mark daily levels (red) and four-hour levels (yellow) for clarity.

• The bottom side of an accumulation candle confirms all time frames underneath it, while the bottom side of a distribution candle confirms downward movement.

• To confirm a hard close, the bottom side of an accumulation or distribution candle must close over a level or trend.

Using Bottom Side of Candles for Hard Closing

The speaker explains how to use the bottom side of candles to determine hard closing in different scenarios.

Accumulation Candle Example

• When in an accumulation phase, the bottom side of an accumulation candle must close over a level or trend to confirm hard closing.

• Only accumulation candles within that specific time frame can confirm hard closing.

Distribution Candle Example

• In distribution phases, only one side (bottom or top) of the distribution candle can close both sides of its body.

• The bottom side of a distribution candle confirms downward movement when determining hard closing.

Clarifying Bottom Side of Candles for Hard Closing

The speaker provides further clarification on what is meant by "bottom side" when referring to candles in relation to hard closing.

Definition and Application

• When referencing the "bottom side" of a candle, it means that both sides of the body of the candle must be closing.

• In accumulation, the bottom side of an accumulation candle confirms hard closing by closing both sides of its body.

• In distribution, only one side (bottom or top) of the distribution candle can close both sides of its body.

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New Section

This section discusses the concept of hard closing a move and its impact on levels and trends in trading.

Understanding Hard Closes

• A hard close occurs when the bottom side of a distribution candle closes over a level, indicating a significant break in the move.

• Mistakenly marking a move as hard closed can lead to incorrect trading decisions.

• It is important to wait for a bottom side break before considering a move as hard closed.

Impact on Levels

• Breaking a level indicates a potential downward movement in the charts.

• Checking multiple time frames, such as hourly and four-hour candles, helps confirm the break and identify deeper levels.

Impact on Trends

• Understanding hard closes is crucial for identifying trend breakouts or rejections.

• Building trend architecture using accumulation points helps analyze global, local, and legacy trends.

• Trend breaks require hard closes on relevant time frames, such as daily or four-hour charts.

Importance of Hard Closes

• Incorrectly assuming trend breaks without hard closes can lead to losses in trading.

• Analyzing different time frames helps determine if a trend is truly breaking or just experiencing temporary fluctuations.

New Section

This section continues discussing the impact of hard closes on levels and trends in trading.

Further Analysis with Time Frames

• Creating larger breaks by analyzing higher time frames provides more reliable confirmation of trend breaks.

Applying Hard Close Concept to Different Time Frames

• Adjusting analysis to one-hour time frame helps identify hard closes and potential breakouts.

• Bottom side closure of a candle on the one-hour time frame indicates a move towards the trend.

Continuous Attack of Next Trends

• Successful trend breaks lead to the continuous attack of subsequent trends.

• Smaller time frames may show signs of this continuous attack before it becomes evident on larger time frames.

New Section

In this section, the speaker discusses the importance of identifying trends and using timeframes to make accurate trading decisions.

Identifying Trends and Timeframes

• The speaker emphasizes the need to identify trends and breakouts in order to make profitable trades.

• Moving up in timeframes allows for a bigger picture view of the market.

• By breaking smaller moments on lower timeframes, one can anticipate larger moves.

• Hard closing a trend on higher timeframes indicates a potential breakout.

• The bottom side of a candle represents all time frames underneath it.

New Section

This section focuses on the concept of hard closing and its significance in marking trends accurately.

Hard Closing and Marking Trends

• Hard closing involves breaking smaller moments within a larger move by marking trends correctly.

• Accumulation to accumulation is marked on the top side, while distribution to distribution is marked on the bottom side.

• Adjusting levels and accurately identifying breakout moments can be achieved by understanding how time works in charts.

• Time decycles information and creates opportunities for pinpoint accuracy with hard closes.

New Section

Here, the speaker explains how to determine hard close time frames based on candle movements during accumulation and distribution phases.

Determining Hard Close Time Frames

• During accumulation, the bottom side of an upwards movement represents the bottom of accumulation.

• In distribution, the top side of a downwards movement represents the bottom side of that distribution candle.

• Understanding these hard close time frames helps in predicting breakouts and adapting trading strategies accordingly.

New Section

The final section discusses Bitcoin's current trend and potential future movements based on hard closes.

Bitcoin Trend Analysis

• Bitcoin is attempting to break its next trend, with the possibility of a hard close on larger timeframes.

• Confirmation on the four-hour and daily charts is crucial to determine future movements.

• Hard closes play a significant role in analyzing trends and making accurate trading decisions.

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