The Only 4hr Price Action Trading Strategy You Will Ever Need... (Full Tutorial)
Published: 2023-08-16
Status:
Available
|
Analyzed
Published: 2023-08-16
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker will detail a specific swing trading strategy and identify currency pairs to trade using it in the upcoming weeks.
"I'm going to be explaining this entire strategy to you and also be showing you some of the currency pairs that I'm looking to trade this strategy with throughout the next couple of weeks."
Pending
Lack of trading discipline will lead to mistakes and losses, rendering any strategy ineffective.
"if you cannot stay disciplined to a consistently profitable trading strategy then you're going to be switching strategies moving your stop up and down moving your target up and down you're going to make a ton of trading mistakes and that's going to cause you to slowly lose money in your account so if you can't master your discipline it doesn't matter what trading strategy you actually learn you will still fail as a Trader"
Pending
New traders often risk too much (5-10% of their account) per trade, leading to a high probability of account blow-up.
"at the very beginning of your trading career before you're even good at trading the problem I see most Traders have is they're risking five ten percent of their account just trying to get rich as fast as possible and that is a great way to blow your account not a great way to get rich you will 99 of people that do that will blow their account"
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Realistic expectations about the time and effort required to learn trading, and the slower pace of wealth accumulation through good risk management, are crucial for success.
"correcting your expectations to a more reasonable level can also help with your mindset can help with your discipline and so number three is have proper expectations around trading be prepared to spend a long time learning how to trade it's difficult be prepared to use good risk management where you're not going to get rich super fast but you can acquire wealth over time"
Pending
Trading success is primarily driven by psychological factors like mindset, handling fear and greed, discipline, risk management, and expectations, rather than just the trading strategy itself.
"a large majority of your trading success is going to come down not to the strategy that you're trading but to the six inches between your ears it's going to come down to your trading mindset your ability to handle fear and greed your discipline and your ability to use good risk management and have proper expectations"
Pending
The speaker outlines an eight-step swing trading strategy that uses daily charts for major structure levels and four-hour charts for confirmation and entry.
"I'm going to be explaining the eight steps that go along with this strategy to you as a brief overview of the strategy itself then we'll dive into each of them in detail first thing that we do with this trading strategy is we look for a major structure level on the daily chart this strategy although we're trading it on the four hour chart utilizes two different Dom frames it utilizes the daily chart for major levels of structure and then the four hour chart for confirmation and entry"
Pending
The trading strategy identifies major structure levels on the daily chart and uses the four-hour chart for confirmation and entry.
"we look for a major structure level on the daily chart this strategy although we're trading it on the four hour chart utilizes two different Dom frames it utilizes the daily chart for major levels of structure and then the four hour chart for confirmation and entry"
Pending
For trend continuation trades in an uptrend, the speaker focuses on two levels: the previous resistance level that was broken, and the previous support level.
"in a trending Market we normally have a situation where price is making higher highs and higher lows in this trending Market I am only paying attention to two levels nothing else ... if price is trending up and it's right here and we start to see a pullback the only two levels for Trend continuation trades that I am paying attention to are going to be the previous level of resistance that was broken and the previous level of support right down here"
Pending
A level qualifies as a major structure level for trading if it has been tested at least twice.
"an added rule for this becoming a major structure level that I'm actually looking in for possible trades is that this level must have been tested multiple times I must see at least two tests of one of these levels"
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For counter-trend trades in a downtrend, the speaker looks for the next support level price will hit after going below the swing low preceding the pullback.
"in order to trade counter Trend in this new downtrending environment what I'm doing is I'm looking at our swing low before the start of a pullback ... I'll put a horizontal line at this level go below it and look left to the very next level price will hit in this case it's this level of support right here so this level would be my counter Trend level"
Pending
Similar to trend continuation, counter-trend levels also require being tested multiple times (at least twice).
"what else do I need just like with train continuation I'll need this level to be a level that has been tested multiple times ... I need this level of previous support that could become resistance to have been tested more than once"
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For bearish counter-trend trades, the level of interest is the next resistance level above the previous swing high before the pullback, provided it has been tested multiple times.
"I would put a horizontal line here I would look above the resistance level the swing I before the start of the pullback I would go above that look left and find the next level of resistance price will inevitably hit if it continues higher this will be my level of resistance I look at as a major structure level"
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A counter-trend trade on EUR/AUD is identified by finding a prominent support level that has been tested multiple times, located below the swing low before the pullback.
"we're on the Euro Aussie daily chart I'll go ahead and let you know this is actually a counter Trend trade ... price is pushing lower our first step is to find the swing low and I'm going to put a horizontal line on that swing low ... but if we look below this level and look left we can see that there's a prominent level of support right here ... this level has in fact been tested multiple times"
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On the four-hour chart, a double bottom serves as confirmation for a bullish trade within this strategy.
"our rules were that I'm looking for a confirmation and for this strategy and for the scope of this video the confirmation is going to be double bottoms and double tops so what we're waiting on on the four hour chart is a double bottom"
Pending
The 'termination zone' for a double bottom is defined by a box from the lowest body to the lowest wick. Candles must touch this zone, but not close below it.
"I grab a box tool and I create a box between the lowest body and the lowest Wick of that candle ... this gray ish box is what I call my termination Zone and again it goes from the body of the lowest low of the double bottom down to the wick of that lowest low of the double bottom what I need is candles to at least touch this area candles can go below it with a wick what I cannot see is a candle close below this area"
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A candlestick pattern, such as an engulfing bar following a long bearish wick, serves as the entry reason after a double bottom confirmation.
"for me is going to be some type of Candlestick pattern for this case I actually use this engulfing bar that followed a long whip candle to the downside"
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The stop loss is set at one times the ATR indicator below the lowest wick of the double bottom.
"I normally do one times the ATR indicator below the lowest Wick of the double bottom ... at the moment it's about 44 Pips so what I'm going to do is go 44 Pips below the lowest low of this double bottom that would put me at roughly 107 Pips for the stop loss"
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For counter-trend trades, a fixed target of 1.4:1 reward to risk ratio is used when managing the position manually is not feasible.
"when I'm unable to do that I actually go with a fixed Target of a 1.4 to 1 reward to risk ratio on these types of Trades when they're counter Trend"
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A trend continuation trade on CAD/CHF is identified by a break below previous support, with the focus on that broken support level as the major structure.
"here on the Canada Swiss we have a train continuation opportunity ... price has done what we've come from a swing High pushed down to a swing low pushed up Consolidated a bit in this pullback and then eventually broke below our previous level of resistance ... we're going to do so right at the previous level of support that was broken"
Pending
For a bearish trade (trend continuation in this example), a double top on the four-hour chart serves as confirmation.
"if confirmation on a bullish trade was a double bottom what do you think confirmation here is going to be on our four hour chart confirmation is going to look like a double top"
Pending
The 'termination zone' for a double top is defined by a box from the bodies to the highest point. Price should touch this zone but not close above it.
"the highest top created before the start of the pullback I'm going to now take a box from the bodies to that highest point and this is what I consider a termination zone so I need price to at least touch this area but price cannot close above it"
Pending
A trend continuation trade on GBP/USD is identified in an uptrend by focusing on the previous broken resistance and the previous support level.
"with this pound dollar daily chart what are you seeing ... an uptrend as prices are in fact making new higher highs here was our previous low what are the two levels I'm going to be looking at for Trend continuation trades well those two levels are right here at the previous resistance that was broken and also right here at the previous level of support"
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A 'very ugly' double bottom pattern was observed on the four-hour chart for the GBP/USD trade example, serving as confirmation.
"it created what I think is probably the ugliest double bottom I've ever traded so right here what we have is price push lower created one bottom here pushed up to a neckline after some consolidation pushed back down and then we did in fact get a Candlestick pattern"
Pending
For USD/CHF, a bearish trend continuation setup is anticipated between 0.8907 and 0.8841, awaiting confirmation and entry.
"we have a downtrend move pushing lower a new swing low followed by a new lower high followed by another new lower low at that point I'm looking back at what the previous level of structure support that was broken it also has been tested multiple times looking left ... we'll be waiting on this bear the dollar Swiss to come up between the area of 0.8907 and 0.8841 and give us some type of confirmation followed by an entry reason"
Pending
For AUD/CAD, a counter-trend zone is identified between 0.8665 and 0.8609, with anticipation of price entering this area.
"we have a counter Trend Zone price is pushing lower at the moment ... this area pushed the market around like a big kid on the playground we look left it's also been tested multiple times as well so with that being the case I'm waiting here on the daily chart for what to happen I'll be waiting for price to come down into my zone between 0.8665 and 0.8609"
Pending
For GBP/NZD, a pullback to the level between 2.0950 and 2.082 is anticipated for confirmation and entry.
"this green area is going to be our major level of structure and with that being the case what I'm going to be waiting on is price to pull back into this level between 2.0950 and 2.082 and in this areas where I'll be looking for confirmation and possible entry reasons"
Pending
For EUR/NZD, a pullback to the area between 1.8081 and 1.7971 is expected for confirmation and entries.
"I'm going to be waiting for price to pull back to that level in this area between 1.8081 and 1.7971 I'll be looking for possible confirmation and entries in this Zone"
Pending
For EUR/AUD, a pullback to the level between 1.6607 and 1.6487 is anticipated for confirmation and entry.
"if we get that pullback down to 1.6607 between that and the 1.6487 level I'll be looking for confirmation and entry in that zone"
Pending
For EUR/CHF, a pullback to the area between 0.9719 and 0.9684 is anticipated for possible confirmation and entry.
"if we get a push up in this pullback all the way to the area between 0.9719 and 0.9684 this will be the area I look for possible confirmation and entry from on the Euro Swiss"
Pending
The speaker has been using a specific swing trading strategy successfully for over six years.
"this is a strategy I've used now consistently for over six years and it's proven to be the most effective swing trading strategy I have ever used"
Pending
Lack of discipline in trading leads to mistakes like changing stops and targets, ultimately causing account losses.
"if you cannot stay disciplined to a consistently profitable trading strategy then you're going to be switching strategies moving your stop up and down moving your target up and down you're going to make a ton of trading mistakes and that's going to cause you to slowly lose money in your account"
Pending
Risk management is crucial and directly tied to controlling greed; higher risk offers higher potential rewards but also higher potential losses.
"number two is your risk management how much can you control the greed you have to try to get rich as fast as possible the more we risk on a trade the more we can make but obviously the more we risk on a trade the more we stand to lose on that trade as well"
Pending
Beginner traders often risk 5-10% of their account per trade in an attempt to get rich quickly, which is a common way to lose their entire account.
"at the very beginning of your trading career before you're even good at trading the problem I see most Traders have is they're risking five ten percent of their account just trying to get rich as fast as possible and that is a great way to blow your account"
Pending
Unrealistic expectations, such as expecting to get rich within a year, can lead to significant trading mistakes.
"number three is having the proper expectations again coming into trading at the very beginning of my career I was Roofing houses and looking for a way out for a way to make enough money to at least quit Roofing houses and honestly I thought I would be able to get rich within a year and those expectations led to a lot of mistakes"
Pending
Successful trading requires a long learning period, good risk management, and a focus on acquiring wealth over time rather than getting rich quickly.
"be prepared to spend a long time learning how to trade it's difficult be prepared to use good risk management where you're not going to get rich super fast but you can acquire wealth over time"
Pending
The majority of trading success depends on the trader's mindset, discipline, risk management, and expectations, rather than just the trading strategy itself.
"a large majority of your trading success is going to come down not to the strategy that you're trading but to the six inches between your ears it's going to come down to your trading mindset your ability to handle fear and greed your discipline and your ability to use good risk management and have proper expectations"
Pending
This swing trading strategy uses daily charts for identifying major structure levels and four-hour charts for confirmation and entry.
"first thing that we do with this trading strategy is we look for a major structure level on the daily chart this strategy although we're trading it on the four hour chart utilizes two different Dom frames it utilizes the daily chart for major levels of structure and then the four hour chart for confirmation and entry"
Pending
In a trending market, the strategy focuses on only two specific levels for identifying trading opportunities.
"in a trending Market we normally have a situation where price is making higher highs and higher lows in this trending Market I am only paying attention to two levels nothing else"
Pending
For trend continuation trades, the strategy focuses on the previous resistance level that was broken and the previous support level.
"the only two levels for Trend continuation trades that I am paying attention to are going to be the previous level of resistance that was broken and the previous level of support right down here"
Pending
A key rule for a structure level to be considered major is that it must have been tested at least twice.
"an added rule for this becoming a major structure level that I'm actually looking in for possible trades is that this level must have been tested multiple times I must see at least two tests of one of these levels"
Pending
For counter-trend trades, the strategy involves looking for the next significant support level below the current swing low, after considering the most recent swing low.
"for a counter Trend trade is I'm going to be looking not at this level but I'll put a horizontal line at this level go below it and look left to the very next level price will hit in this case it's this level of support right here so this level would be my counter Trend level"
Pending
In a counter-trend environment, a valid level for potential buy trades is the next support level that has been tested multiple times.
"this level must have been tested multiple times so if we're pushing lower and then we begin to continue pushing lower this is where I would look for possible buy trades in a counter Trend trading environment I would look for the next level price is going to hit up support then I would make sure that that level has been tested multiple times"
Pending
For counter-trend trades, the strategy involves identifying the next support level that has been tested multiple times. The previous swing low before the pullback is not used as a support level in a downtrend.
"for a counter Trend trade is I'm going to be looking not at this level but I'll put a horizontal line at this level go below it and look left to the very next level price will hit in this case it's this level of support right here so this level would be my counter Trend level for this trading strategy and what else do I need just like with train continuation I'll need this level to be a level that has been tested multiple times"
Pending
A valid double bottom confirmation requires candles to at least touch a specific termination zone (defined by the lowest body and wick of the first bottom); candle closes below this zone are not permitted.
"what I need is candles to at least touch this area candles can go below it with a wick what I cannot see is a candle close below this area as long as those criteria are met I have a valid double bottom"
Pending
Following a double bottom confirmation, an entry reason is a candlestick pattern, such as an engulfing bar after a long wick candle to the downside.
"entry reason after the confirmation of a double bottom for me is going to be some type of Candlestick pattern for this case I actually use this engulfing bar that followed a long whip candle to the downside"
Pending
For counter-trend trades, the stop loss is set at one times the ATR indicator below the double bottom, and a fixed target is typically a 1.4:1 reward-to-risk ratio.
"the stop loss is one times the ATR indicator below the double bottom and if I'm using fixed targets I normally use a 1.4 to 1 reward to risk ratio on these types of Trades when they're counter Trend"
Pending
For a bearish trade (trend continuation), the confirmation on the four-hour chart is a double top, analogous to a double bottom for a bullish trade.
"confirmation on a bullish trade was a double bottom what do you think confirmation here is going to be on our four hour chart confirmation is going to look like a double top"
Pending
For a double top, a termination zone is created from the bodies to the highest point. Price must touch this zone but cannot close above it for a valid setup.
"the highest top created before the start of the pullback I'm going to now take a box from the bodies to that highest point and this is what I consider a termination zone so I need price to at least touch this area but price cannot close above it"
Pending
In a bearish trend continuation trade, the stop loss is set at one ATR above the double top's highest point, and a fixed target is set at a 1.4:1 reward-to-risk ratio.
"my stop is going to be one ATR which is 22 Pips so 22 Pips above the highest point of the double top which would be roughly a 42 pip stop loss in this case and as I said for a Target on fixed targets I like to look for about a 1.4 to 1."
Pending
A specific major structure level for the Pound-New Zealand pair is identified between 2.0950 and 2.082, where a pullback is anticipated for potential trades.
"this green area is going to be our major level of structure and with that being the case what I'm going to be waiting on is price to pull back into this level between 2.0950 and 2.082"
Pending
For the Euro-New Zealand pair, the strategy involves waiting for a pullback to the area between 1.8081 and 1.7971 for confirmation and entry.
"I'm going to be waiting for price to pull back to that level in this area between 1.8081 and 1.7971 I'll be looking for possible confirmation and entries in this Zone"
Pending
For the Euro-Aussie pair, a pullback to the zone between 1.6607 and 1.6487 is anticipated for potential confirmation and entry.
"if we get that pullback down to 1.6607 between that and the 1.6487 level I'll be looking for confirmation and entry in that zone"
Pending
For the Euro-Swiss pair, the area between 0.9719 and 0.9684 is identified as a zone for potential confirmation and entry following a pullback.
"if we get a push up in this pullback all the way to the area between 0.9719 and 0.9684 this will be the area I look for possible confirmation and entry from on the Euro Swiss"
Pending