PT 02 PIT 07 LQ EM Backtest FXReplay EURUSD DAY 3 LDN + NY

Day Three Overview

In this section, the speaker discusses how to approach trading on day three. They emphasize starting from high time frames and looking for longs and shorts in a tight range.

Starting from High Time Frames

• Always start from the top down when analyzing high time frames.

• Look for larger structure patterns to identify potential weak points in the market.

• Use lower time frames to confirm potential weak points and shifts in bullish or bearish sentiment.

Analyzing Price Action

• The current battle between supply and demand is causing a tight range with no clear direction.

• Weak four-hour highs and lows indicate that price is ranging within a small area.

• Wait for price to commit to either breaking out of the range or coming down into fresh demand before making any trades.

Tips for Sticking to High Probability Setups

• Use a tool that temporarily hides all your drawings to get an unbiased view of what's happening with price action.

• Box off areas of weak highs and lows to see where price is ranging.

• Wait for higher probability setups such as fresh demand buying at the bottom of the range or selling at four-hour supply.

Trading Strategies for Time Constraints and Funding Challenges

The speaker discusses the importance of having a trading strategy when facing time constraints and funding challenges. They explain that it's good to have something in your arsenal for knowing when you can force trades if you need to.

Weak Low and Range Bound Market

• This is a weak low that hasn't broken any structure or even supply.

• Everything within this range is just which structure, and at some point, it will break out of the range.

• There's nothing too obvious at the moment, so let's have the M1 open to the side and see how the M15 develops.

Ping Pong Trading

• These are all weak lows, so there's no inducement in the leg.

• You can potentially play ping pong since it's range-bound.

• There's no entry point at the moment because we've already had multiple mitigations.

Liquidity Rules

• We're getting table tennis here with potential liquidation below that low.

• We need to see new liquidity built and swept before making any entries.

• If you have to stare at a setup for that long and try to find out where it is, then it's probably not an entry.

Supply and Demand Analysis

The speaker discusses the supply and demand analysis of a trading range, highlighting the importance of waiting for high probability setups.

Trading Range Analysis

• The supply has failed to take out the low, indicating weak momentum.

• There is no significant movement in the Point of Interest (POI).

• The POI is gone as prices move higher.

• Ranges are low probability setups. It's better to stick to high probability trades by setting alerts outside the range.

• A sweep of the POI can be a strong liquidation of all range highs, leading to buy-side liquidity building up above these highs.

• Liquidation occurs due to demand down below and a flip in momentum.

Potential Entry Points

• A potential entry point is when there is a liquidation caused by a flip in momentum from demand. This can be refined using single candle pivots within the POI.

• However, this setup has not swept any liquidity itself, making it tricky from a risk-reward perspective.

• An order can be set at an extreme with preference given to flips over shocks.

Advanced Trading Models

• An M1 shock shows that an extreme is holding and uses the flip as inducement.

• Entering at an extreme provides good risk-reward but requires waiting for high probability setups.

Higher Time Frame Structural Sweep

The speaker discusses the higher time frame structural sweep and confirms that the extreme is going to hold. They caution against forcing an entry and recommend waiting for a strong low before considering a long position.

Confirmation of Extreme Holding

• The speaker confirms that the extreme is going to hold.

• They advise against forcing an entry and recommend waiting for a strong low before considering a long position.

Looking for Longs

• The speaker suggests potentially looking for long positions if bullish order flow continues.

• They note that there is no inducement on the leg to the left, but they are looking for liquidity to be built and swept.

• A structure break occurs, but nothing significant happens yet. The speaker notes that they need to see at least the chalk happen before looking for an entry.

Supply Failure and Potential Loss Avoidance

The speaker discusses how supply failure can help avoid potential losses from terrible POIs.

Supply Failure

• The speaker notes that if you were looking for a long, you would want to see the supply that cools liquidation fail and potentially get flipped so we get a reaction from supply.

• They confirm that the supply has failed, which saves traders from potential loss from terrible POIs.

Playing Ping Pong Sweep of Structure

The speaker discusses playing ping pong sweep of structure when trading outside session hours on M1.

Trading Outside Session Hours on M1

• The speaker notes that trading outside session hours on M1 requires specific timing when volume is high.

• They recommend only trading outside of session hours when they really like the high time frame POI.

• The speaker notes that playing ping pong sweep of structure probably would be a trade they would never take.

Reality of Trading

The speaker discusses the reality of trading and how it can be difficult to find good trades in certain market conditions.

Difficulty Finding Good Trades

• The speaker notes that there is nothing going on during this session, and traders need to be patient for the most part.

• They caution against trying to force trades in weak market conditions.

Being Aggressive and Consistent

The speaker discusses the importance of being aggressive and consistent with their trading strategy, even if it means waiting for the right opportunity. They also reflect on a recent trade that did not go well.

Trading Strategy

• It is important to be aggressive and strict with your own monitoring model.

• If you are going to be aggressive, you have to be consistent and take almost everything.

• Wait for a range to break out before making any moves.

• Look for potential long trades after breaking out of the range.

Recent Trade Reflection

• Reflecting on a recent trade that did not go well due to poor timing and lack of demand.

• The speaker was unable to get a strong liquidation, which saved them from further loss.

• The market was volatile and unpredictable, leading the speaker to avoid trading live.

Mitigating Risk in Trading

The speaker discusses how they mitigate risk when trading by observing market trends and waiting for clear opportunities.

Market Trends

• When looking at the four-hour chart, it appears more 50/50 than bullish or bearish.

• Demand is starting to hold while supply is failing, indicating potential control shift.

Mitigating Risk

• Wait for inducement to the right before trading.

• Wait for a clear opportunity to present itself before making any moves.

• Be cautious when trading from a weak high.

Trading Strategies

The speaker discusses their approach to trading and how they analyze market trends to make informed decisions.

Analyzing Market Trends

• Use structural M15 liquidation of the high to determine potential trades.

• Wait for the high to break before making any moves.

• Avoid forcing trades in volatile markets.

Making Informed Decisions

• Look for significant price formations before making any moves.

• Observe momentum and be cautious when it is strong.

• Tap into external wage equality behind swing highs to pick up swing pool back right

Weak High Being Respected

The speaker notes that the weak high is being respected and there is no significant movement in the market.

Weak High Being Respected

• Nothing significant is happening in the market.

• The speaker notes that it's important to remember why a weak high is being respected, and how it affects medium time frames.

• There has been a mitigated supply sweep, which resulted in a fresh supply. This caused the market to range, with shorts at the top and longs at the bottom.

No Entry Model Available

The speaker discusses how there are no entry models available due to lack of momentum in the market.

Lack of Momentum

• There are no entry models available due to lack of momentum in the market.

• The speaker notes that they don't want to buy against momentum in the middle of a range.

• Although there is an M15 flip, it's not significant enough for trading purposes.

• There is no Supply ready for trading on M15.

Waiting for Clear Signals

The speaker emphasizes waiting for clear signals before entering trades.

Waiting for Clear Signals

• The speaker emphasizes waiting for clear signals before entering trades.

• Although there is an M15 demand Wick POI potentially available, it's not clear enough to enter into a trade yet.

• It's important to wait until after session ends before making any decisions about trading.

• The speaker notes that there is nothing going on in the market at the moment.

• The speaker emphasizes waiting for clear signals before entering trades.

Tough Day with Horrible Price Action

The speaker reflects on a tough day with horrible price action and discusses potential trading strategies.

Tough Day with Horrible Price Action

• The speaker reflects on a tough day with horrible price action.

• It's important to wait for clear signals before making any decisions about trading.

• Waiting for structure break can lead to new ranges, which can be used for trading purposes.

• Playing M15 shifted bearish after mitigation of four-hour supply can be an effective strategy.

Conclusion of Day Three

In this section, the speaker concludes day three of trading and mentions that there are two more days left to complete a full trading week.

Wrap Up

• The speaker concludes day three of trading.

• Two more days are left to complete a full trading week.