CRT secrets 5: Key level
Welcome to Episode Five of CRT Secrets Key Levels
Introduction and Engagement
- The host welcomes viewers to the fifth episode, emphasizing the importance of subscribing and clicking the bell icon for notifications on future lectures.
- The host mentions a weekly "What do you see?" post on Twitter, which has gained popularity among trading influencers who have started to replicate this engagement strategy.
Purpose of "What Do You See?" Posts
- The "What do you see?" posts are designed to train viewers' eyes in chart analysis without revealing asset classes, as all charts behave similarly across different markets (futures, forex, crypto).
- Participation in these posts is encouraged as they serve as valuable practice alongside live analysis and lectures.
Understanding Trading as a Profession
Commitment Required for Success
- Trading is framed as a serious career that requires dedication; expecting quick success from short videos is unrealistic.
- The host compares learning to trade with other professions like medicine, stressing that mastery takes time—at least one year with the correct strategies (CRT and Turtle Soup).
One-Year Rule
- A challenge is posed: if anyone can prove a better system than CRT and Turtle Soup, they will receive $1 million. This emphasizes confidence in his methods.
- Viewers are advised to expect consistent returns only after one year of dedicated practice; ignoring this timeline may lead to prolonged struggles in trading.
Key Levels in Price Action
Importance of Key Levels
- Understanding key levels is crucial for successful trading; these can be based on price or time.
- Key questions include how to mark key levels correctly, types of key levels, reactions at these levels, timing for hits on key levels, and lower timeframe price actions.
Stages of Marking Key Levels
- Marking key levels involves three stages:
- Stage One: Inability to accurately mark key levels leads to frequent mistakes.
- Stage Two: Improved accuracy but still struggling with execution when trading those levels.
- Stage Three: Comfortably marking and trading key levels due to familiarity with price behavior at those points.
Defining Key Levels
Characteristics of Key Levels
- A key level is defined as a price point where traders expect a bounce—either counter-trend or at significant highs/lows.
Mastering Entry Models in Trading
The Importance of Authentic Mentorship
- The speaker emphasizes the prevalence of inexperienced mentors in trading, particularly among younger traders who may not have practical experience.
- Many self-proclaimed mentors do not actively trade or generate profits, which raises concerns about their ability to teach effectively.
Understanding Key Levels in Trading
- Two critical questions regarding key levels are introduced: how price behaves on lower time frames at higher time frame key levels and identifying trade opportunities at these levels.
- Viewers are encouraged to take notes while watching to enhance understanding and retention of the material presented.
Price Behavior Near Key Levels
- The market often creates bullish patterns as it approaches a key level, misleading traders into premature buying decisions.
- Traders relying solely on pattern recognition can suffer significant losses before reaching the actual key level due to false signals.
Recognizing Market Manipulation Patterns
- A common tactic involves forming convincing bottoming patterns just before hitting a key level, leading traders to believe a reversal is imminent.
- This manipulation results in what is termed "the kiss of death," where prices drop below expected support before reversing sharply upward.
Trading Strategies Around Key Levels
- Traders should be aware that fake bottoms and market structure shifts frequently occur around key levels, complicating decision-making processes.
- There are multiple strategies for trading around these levels; one can either capitalize on downward movements towards the key level or trade from the rebound off it.
- Successful trades involve recognizing true market structure shifts characterized by specific price movements (e.g., lower lows followed by higher highs).