This content details a simple yet highly effective trading strategy focused on understanding buyer-seller interactions at support and resistance levels, enabling consistent profitability across various timeframes and markets.
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This guy has mastered the 1 minute time
frame and you can too. I had one trade
that we're going to talk about today. It
was a $100,000 Tesla trade. This is the
one candle rule. It was a swing position
on a higher time frame using these exact
same concepts and strategies that we're
going to talk about. But that trade was
not a [music] two-hour multiple, right?
That trade was if you're a brand new
trader or you know, you've been trading
for a little while but you haven't
really seen that consistency. I
typically recommend this is called fake
out liquidity. A lot of ICT traders use
that as well. For me, I try to keep my
stuff pretty simple. So, I would get rid
of this. And what I'm looking for is
just the introducing Scarface trait. In
this episode on Chart Fanatics, Scarface
goes through the 60% win rate scalping
strategy that has allowed him to make
over $3 [music] million. There's a lot
of traders even that ask me. They're
like, "Well, for example, if your
strategy or your system works so well,
you have a high win rate, whatever it
may be, why can't you trade every single
day?" My win rate is high because I
don't trade these days. It's high
because you don't have to come into the
the market every single day looking for
a trade. You let the trade present
itself like I shown you in these last
two setups. These trades presented
themselves to me. Here is the final
trade that we're going to be talking
about today. This is the one candle
rule. This was a Tesla trade I took.
This was $100,000 trade. But how did I
set this up to actually make that money?
And what did I do that helped me stay in
the trade? That's the key as well.
Because you'll see in the the price
action here, most people would have sold
either too quickly or too late. What did
I see in Tesla? There's a couple
confluences I want to talk about before
Hey guys, before we get into this
incredible episode, I want to say a
massive thank you for all of your
support so far on both Words of Wisdom
and Chart Fanatics. We have grown
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not forget updates on every episode and
things that we are bringing to this
industry that's going to change it
forever. But for now, the links for that
are in the description. Let's get into
this episode. Welcome everyone back to
Chart Fanatics, the go-to channel for
all the best [music] strategy and
concept breakdowns with the very best
traders in the world. Talking of which,
today we have a very very special guest.
This is a strategy that is extremely
simple. It has a 1 to2 R and [music] on
average a 60% win rate. It has made this
guest over $3 million to date and he is
going to break down the exact strategy [music]
[music]
step by step. It's the one and only
Scarface Trades aka Tony aka Raph.
Appreciate you. Appreciate you having me.
me.
>> You have too many names. Okay. I do have
a couple too many names. Even in the
last podcast we did, you called me by
like three names and people were like,
"What's his name?" [laughter]
>> Don't worry, everyone thinks my name is
Riz one, but it's not. So, at least at
least they will get yours right. But
we're here, as I said, very excited for
this strategy, you know, because not
only do you provide so much alpha to the
community already, but you've done
phenomenally well using the exact
strategy to $3 million. That's no joke.
And, you know, the stats back it up as
well. An average of a 60% win rate. You
said just before we started actually
over the last couple months it's been
higher at 80%. >> Yeah.
>> Yeah.
>> Right. And that's amazing to hear. But
where should we begin?
>> So first I just want to break down what
the actual system revolves around and
then we can get into some of the
playbooks and the actual setups that I
trade. So first let me let me start this
off real quick and uh apologize my
handwriting before. Um but so for
example when you first start trading the
main things you learn is that you have
resistance and you have support. So in
between resistance and support what you
have is just price action right? So the
stock's literally just going to look
like this. Okay. Now when a stock's like
this what does this actually mean?
Right? What does the resistance mean? It
means that there's sellers that are
overpowering buyers up in this area. But
then when every single time it comes
down into support what does that mean?
It means buyers are overpowering
sellers. So they want the stock to hold
above this level and sellers want the
stock to hold below this level. Okay. So
that's like the most simple way to
explain what this chart is doing or what
stocks just normally move. Okay. Now if
I asked you what happens if the stock
breaks above, what are you doing in this scenario?
scenario?
>> I would probably look for a retest.
>> Retest right now. Why would you look for
a retest? This is because when you have
this move right here, this doesn't
actually validate anything, right?
Because this move could actually come
right back down and fail. This is called
fake out liquidity. A lot of ICT traders
use that as well, right? For me, I try
to keep my stuff pretty simple. So, I
would get rid of this. Okay? And what
I'm looking for is just the extended
move back into the resistance, which is
now turned into support. Right? So, now
that resistance that we previously had,
right? Okay, we can make this green.
This is now support, right? Vice versa,
if the stock theoretically came back
down, right? This support is now turned
into resistance for that downside move,
right? So, in the most simple way, how
are buyers and sellers interacting with
the market? And so, a lot of people will
be looking at pattern trading. They'll
be looking at one specific thing. Maybe
it's like, for example, like a bull flag
move and then continuation, right?
However you look at it, that's fine. But
understand what's going on behind the
scenes, right? And that's the most
important part, understanding the
context of why you're trading, what
you're trading. Now, so like I
explained, right? Let's say we have
resistance up here, right? We break out,
we retest, right? So this is, let's just
say it was consolidating, right? And it
was coming back to the upside. Now, in
this scenario here, okay, we know this
is first resistance now turned into
support. Now, at this level, what are
you doing? Are you just going to buy it
mindlessly? Right? What would you what
would you do in this scenario? Like what
would you wait for?
>> I would hope to wait for confirmation. I imagine
imagine >> confirmation.
>> confirmation.
>> I imagine there's people out there who
would just buy way.
>> Exactly. Right. So this strategy in my
opinion is extremely simple to
understand. However, there's a couple
factors that make it more high
probability. Like you're not going to
get, you know, a 60% win rate just
buying the retest. That's not how that
works. So now in this area we have to
wait for some level of support to form
or buyers to basically tell us that they
are stepping in and overpowering sellers
because we know if it breaks back below
right then what happened? That means
sellers overpowered buyers. Okay? Right?
So if we use this example right here,
let me get rid of this. If we use this
example right here, this is where we
have to understand price action just a
little bit. Right? Now, for price
action, some people use orderflow to
understand what's actually going on on
each candle. I think that's a little bit
overkill. It works, but I for me it just
because I'm trading so fast, I need to
understand what's going on right away
rather than waiting for too much
confirmation, right? Because you don't
want to hesitate on the entry either.
So, for me, what I'm looking at here is
buyers to step in near this level. Okay?
And show me, right? So, for this candle,
for example, what does this show us?
Right? This shows me that the stock or
the candle opened up here. Okay, we
brought it down.
What does it mean when we're bringing it
down? It means that at this level,
sellers were overpowering buyers. >> Yeah.
>> Yeah.
>> And then when we bring it back up from
the lows all the way up here, this is a
hammerstick candle obviously, right? If
we bring it all the way back up, what
does that show? that even though sellers
were stronger than buyers at one point
of this candle, buyers were still able
to hold it above the key level which is
the resistance now turned into support
and we can clearly see that there was a
fight between sellers and buyers and
buyers won. Okay. So now that we
understand this, this is where I'm
taking my entry right for the
continuation to the upside. That's the
most simple way to explain the system
that everything revolves around. It's
simply the interaction of buyers and
sellers and the interactions of simple
support and resistance. Now, I just want
to preface this as well. Some people
especially I feel like nowadays a lot of
people trade ICT, SMC, you know, maybe
even more complicated strategies. For
me, the one thing I've realized works
really well is especially if you're a
new trader when you are trading those
strategies, it may be a little bit
harder to understand the entry model
because for example, like I'm sure
you've seen, there's some STR and I'm
not saying this doesn't work. It it
definitely works. whatever it may be,
right? But like there's entry models,
right, where like you need to have like
six confirmations of price going up,
then coming back into like a fair value
gap, then making another order block,
like whatever it may be, right? For me,
that just doesn't work. So for me, what
I've realized works simple support and
resistance and understanding this is the
most key. The interaction between buyers
and sellers. Okay.
>> What time frame are you observing sort
of this price action interaction on?
>> Sure. So when we get into the examples
in this video, I think it'll be very
very clear for everyone to understand
exactly how to trade the strategy. But
for this specific scenario, you can
trade this on any time frame, any
instrument, and any market. For me
specifically though, I trade from 9:30
to 11:00 a.m.,
>> right? And that's Eastern time. So I
trade from 9:30 to 11:00 a.m. Eastern.
That's the only time I'm looking at it.
It's the New York Stocks Exchange open.
there's a lot of volume and so I can be
done the day pretty quickly. Now, in
terms of the time frame, I primarily
trade on the one minute time frame.
Okay? So, when I'm looking for my
entries, I'm looking for the one minute
time frame. However, when once again we
get into those other playbooks and the
setups that I actually trade that
revolve around the strategy, there's
always going to be the different time
frames that we're looking at. And that's
just so we have a better clue and
context of how the market actually moves.
moves.
>> Definitely. So, you're not just looking
at support and resistance that's formed
on a one minute time frame. uh and then
looking to execute based on the retest
and confirmation. There's more context
around that depending on the playbook.
>> 100%. So I the reason I wanted to
explain this is just so you understand
what the system entails, what it is, how
it works, but of course it'll get a
little bit more advanced. We're going to
try to keep it as simple as possible,
but it will get more advanced than this
just because you have to understand if
it was as simple as resistance breaking
and buying the support, you know,
everyone Exactly. Anyone could do it.
There is context behind this trades and
when we get into real examples it'll be
much more simple to understand but for
right now what you what we need to
understand is just simple support and
resistance break. Now this was the
bullish example of that. One thing I
will say it's quite interesting you
mentioned that because I think people
hear simple and they assume oh you
should be able to just break it down in
two minutes but the reality of it being
yes it's a simple concept but if you
want to learn something you still need
to learn it in depth and we're going to
explain it in depth every single time
regardless of you know what you may
assume is simple doesn't mean quick. Um,
simple just means that it will be as as
you know, you pointed out perfectly.
It's not a system that requires six,
seven, eight confirmations and different
things to be able to identify and
execute your trade. And I think that's
quite powerful because for some people
that might be what they need, right, to
have the confidence to execute. But for
a lot of people, I imagine it will
actually hold them back because of the
amount of information they need to
process before they can even take
action. by which point a lot of the time
they probably will hesitate because of
the amount of things they're trying to
look for and the being able to confirm
them all together as well I imagine is
probably hard to spot within a market
especially when it's moving so fast. So
to answer your question, right, one of
the main things like you mentioned is
for me when I first started trading, I
was still a teenager at the time. And so
I tried a bunch of strategies. I've
tried literally every strategy to find
one that works for me. And I always come
back to simplicity equals profitability.
And that's simply due to the fact that
when we have fast moves in the market
and you're looking for a 100 different
confirmations, right? Even for example,
right, let's use this bearish example of
this support and resistance kind of come
back for the retest. Right? Now, if it's
coming back for the retest, let's say
it's making a candle that's weak like
that. Right? Now, if I'm looking for
this and then I'm also looking for
volume and then I have another indicator
coming in here. Right? That's just too
much noise for me personally to be
looking at all of these and then
especially if you're on the 1 minute
time frame, looking at all of these and
then looking to enter is just you're
going to either hesitate on the entry or
you're going to be too late to the
entry. So for me, one of the main things
is this right here, this setup. The only
thing that you really want to focus on,
like I said, is buyers and sellers
interaction, but that happens through
the candlesticks and understanding price action.
action. >> Yeah.
>> Yeah.
>> Right. So understanding price action for
me is key. Um, and similar to how you
said you don't want to hesitate on the
entries. When we get to the pros and
cons of this strategy as well, we'll
talk a little bit more about that as
well, but you do not want to hesitate on
the entry because the entry is where
you're going to make the most money. And
then your exits, obviously, we'll talk
about that in a second as well. cash up
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[music] Get up to 6 million in futures
funding today. Now, let's get back to
the episode. So, with this, this is
going to be the short version of the
bearish side. Now, in this example, what
are we looking at? Right? So, we know
previously we were looking at that break
and retest to the upside. In this
example, it's the same thing. Right?
Now, this one, right, for anyone that
knows price action, this is an inverted
hammerstick candle or a shooting star
candle, whichever one you want to call
it, doesn't really matter. But what does
it show? Right? This shows now at this
point of the video, you should
understand sellers are overpowering
buyers on this whole candle. Okay,
buyers did try to bring it up. At one
point, this was a green candle, right?
So, at one point, just to kind of
demonstrate how this candle looked, this
candle when we opened up right here,
right, it moved up like this, right? So,
it was a full bullish green candle. Yeah.
Yeah.
>> Right. But then after we started coming
down now all of a sudden right the
candle made this wick and then of course
we move to the downside and then it
became a red candle. Okay. So
understanding that is really really
important of how the candlesticks form
and now once we have this we're looking
for weak price action. We got the weak
price action and then we're looking for
a move to the downside. Now once again
the key here is also the risk
management. I personally like to go for
at least a twor multiple. Now, this
means for every $100 of risk,
I'm looking to make $200 of profit.
Okay? In the most simple terms, that's
what I'm looking for on an average
trade. I have trades when we get into
the examples. I had one trade, for
example, that we're going to talk about
today. It was a $100,000 Tesla trade,
right? It was a swing position on a
higher time frame using these exact same
concepts and strategies that we're going
to talk about. But that trade was not a
two-hour multiple, right? that trade was
much much higher in our multiple due to
the fact that if you use this strategy
right you can scale out some at for
example low of day at this at this point
right you can scale out anywhere from
25% to 50% right at low of day now low
of day may give you potentially maybe
even a 1.5 right to that 2 that we're
looking for but low of day for me right
I take this because this is simply
locking in realized gains right so we're
just going to do real gains
Right? Real gains, right? This is simply
locking in that real gains that we want
to see because your account is not going
to compound if it's a small account, if
it's a big account. It's simply just not
going to compound if all you have is
unrealized gains, right? So, we need to
always lock in profit. For me, that's
that 25 to 50% at that low of day level,
depending on how strong the market is.
This strategy is very based off of the
context of the market, which we'll get
into with the examples, but this is
overall the actual system behind the
strategy. We're looking for that two R,
right? We're looking to scale in and out
of trades. We're looking for that lower
time frame entry model, right? And then
we're also just looking for the buyers
and sellers to interact with price,
right? So, the system is very clear now.
But now, let's talk about the three
setups that we actually have within
this. Before we move on, just to you
know really highlight and I think it's
very important because a lot of people
may hear shooting star or inverted
hammer and assume that's just the
basics. That's not that doesn't work but
in reality it's not about the as you
said the name it doesn't matter what you
call it. It's what you pointed out which
is the interaction. What does it
represent? Because I think you mentioned
earlier some people will go into say
order flow and start going into trying
to identify exactly where those buyers
and sellers are and how many and you
know the difference between them which
is obviously powerful and useful for
those who you know sort of resonate with
that but it's not necessary as you've
shown because the candlestick itself if
you're able to identify and be able to
actually resonate with what's actually
happened and understand it as you
pointed out is is what's important,
right? It's not about the the title of
it. It's not necessarily about having to
make sure you have the order flow and
and you're dissecting that chart. It's
actually just making sure you understand
that interaction and so what that
represents. So, you know, some people
talk about wicks and then bodies and
then all this when in reality again,
what does it boil down to? And as you
mentioned earlier, some people will
argue like SMC is a better way to trade
or this. And I've always said that every
type of trading regardless what it is in
the end, it's just buying and selling,
right? So, as long as you can understand that,
that,
>> then you're you you're at least
following what the market's doing.
[snorts] Um, so I just wanted to
highlight that because I know that maybe
some people out there who hear
candlestick uh closures or candlestick
pattern names and assume, you know,
maybe get put off because they think
it's the basics or whatever, but in
reality, that is trading. Trading is and
boils down to how well you can interpret
that the buyers and sellers and the
interaction between them and being able
to identify. As you said, at one point
this candle was purely bullish. Mhm.
>> They fa the buyers failed to push price
higher and the sellers took over. That's
what matters. that interaction and that
understanding of that interaction and
then obviously a company I think that's
a really important point you made
actually in terms of yes you have your
strategy but what matters afterwards is
then how you utilize that strategy the
rules around that strategy because I
think a lot of people put so much weight
into just the strategy itself that
you're learning
>> versus that's that alone won't make you
profitable right it's about how then you
build your rule sets that creates a
system an edge and then of course
there's your trade management your
execution etc but yeah sorry uh we can
move Yeah. No. Well, I was just going to
say based off your points that you just
made, that's really important to
mention. Now, the reason I was I said
order flow earlier is because when
you're looking at order flow, it's the
same thing, right? You're looking at
what's actually going in the anatomy of
the candle, which is good. If you want
like super super precise entries, it's
you can look at that. That's completely
fine. I, you know, if you're using that
for me though, the thing is when you're
especially if you're a newer trader, you
want to basically look at what's going
on on the actual price action candle
because at the end of the day, even when
you're using order flow, right? Yeah.
you're using, you know, the order flow,
you know, chart looks like this,
whatever it may be, right? But it's
telling you the exact same thing. These
two things will be telling you the exact
same thing. This one's just easier to understand.
understand. >> Yeah.
>> Yeah.
>> Right. And you can still have a pretty
good entry. You may not have that exact
pinpoint entry where buyers and sellers
are interacting, but it'll be so close
where over the long term, which we know
trading long-term stats matter the most,
right? Over the long term, you're going
to have the same stats, right? So,
that's the key based off what you said
as well. Now, let's start talking about
some of the actual setups. So, the first
one we're going to talk about is going
to be the one candle
So, the first setup that we're going to
we're going to talk about today is going
to be the one candle rule. Now, we
already know I already said the basics,
right? What we're looking for is a stock
to break out, retest. That's simple.
Okay. Now, what does a one candle rule
entail? So, if we have, for example, a
resistance at let's say $100, okay, and
this is a resistance. If we have a stock
coming up to this level, okay, moving
up, moving up, and you can see these
upper wicks kind of coming in on the
stock as well, right? Stronger push up,
right? Upper wick. And then when it
comes up into this resistance level, we
do this,
right? We have that downlo candle there,
right? We may put in another downlos
candle here as well, right? And then
buyers decide to bring it back to the
upside. Okay, so we bring it back to the
upside just like that. Now, when we're
looking at the retest, what do we want
to look for? We know that this was
first, like I talked about resistance.
Now, it's turning into support over
here. Okay. Now, what is a little bit
more like we talked about confirmation.
and we're looking for those entries.
Just support and resistance is fine to
understand the system, but that's not
how I'm entering based off of my actual
system, right? So, or strategy. So, when
we're looking at this, we know that the
stock needs to come back into this
level. That is key. We already know
that. But what gives us more
confirmation or maybe even a little bit
of leeway to enter the stock? Because if
we're looking at support and resistance,
this is a this is a line, right? We
we're not going to have the precise
entry right on that line. We need to
have some sort of, you know, for
example, we need to know where our stop
loss is. We need to know where our exact
entry is. We need to know it's not going
to be the exact, you know, candle or the
exact resistance turn into support,
right? So, when we're coming back, we
have to understand buyers and sellers.
This previous red candle or down close
candle in this bullish one candle rule,
what does this signify to you?
>> Signifies that sellers tried to step in
and hold price below resistance.
>> Exactly. Right. So this was a
resistance. Sellers try to step in. Now
if we move this over, right, just like
this, right? We just kind of mark this
one out, right? Like that. Now when we
come back, we know that there was
sellers here. Okay, there was sellers
here trying to hold us down. So this
next time we come down, what's going to
happen? Right? Buyers already brought it
up here, right? So sellers were there,
buyers brought it up. So they took out
their orders, right? So their orders are
now mitigated. And now buyers stepped in
and they're over they were they're
overpowering sellers. So when we come
back into this area, what we're looking
for is to hold yes the resistance and
support, but more importantly this one candle.
candle. >> Interesting,
>> Interesting,
>> right? One candle. That's all it takes.
We're looking at this one candle. And
once again, this works on any time
frame. I specifically trade the one
minute. You can trade this on the five
minute. You can trade this whatever you
want. Right? I know traders that trade
this on the 15-minut time frame, 1 hour
time frame. It works the same. Now, when
we're looking at this kind of pullback
entry in here, right? Now that we
understand what the one candle rule is,
right? What are we looking for? It's not
just coming back into that area, right?
It's coming back into this area. Okay?
Let's say something like this.
Make a smaller candle. And then it comes
in here, right? It puts in that wick.
Now, you can see for me, one of the main
things when I'm looking to enter, right?
We'll zoom in on this a little bit
closer. Right? Something like this. This
is what we have. Right? When it first
when this candle was developing at first
into this one candle rule, right? Let's
just say the one candle rule was like
this box right here. >> Yeah.
>> Yeah.
>> Okay. So, we're just zooming in over
here. So, when this candle was first
developing, right, this was a bearish
candle to the downside. Simply like
that. Right. Now, the fact that this was
a bearish candle to the downside, what
does that show? sellers once again
overpowering buyers. That's fine. We
understood this. At this point, you
should understand that concept, right?
But then when we brought it back up,
right, and the candle closed like this,
what does that mean? Buyers stepped in.
But what's important about this and what
you need to understand is waiting for
the candle close. You have to wait for
the candle closure before you're
entering the trade. That is key. If you
don't wait for the candle closure, this
candle hasn't every single candle that
I've shown you here, right? All of these
candles have closed. when you're back
testing your trades, right? If you're
back testing your trades, most likely
you're waiting for the candlestick to
close before you're looking for that
entry. No matter what platform you're
back testing on. Some people may not,
but for majority of traders watching
this, I know you're waiting for candle
closures. But then when you go into the
real market and you're looking for this,
you're not even waiting for the
candlestick closure, right? You're just
entering based off of the fact that it's
touching the level or maybe it may it
may even look like this, right? It may
look bullish, but then in the very last
10 seconds, it may come back down,
right? So like
>> the last move.
>> Exactly. Right. Like for example, if
that was a support, it may still come
down and close below that level. We
don't want to do that. So waiting for
candlestick closures. Once again, I
trade on the one minute time frame, so
you just got to wait a couple minutes
here, right? Um waiting for that is
really, really key. Okay, so one candle
rule knowing that sellers were
overpowering buyers first, then buyers
stepping in. Buyers need to hold this
above here. Right now,
>> does it have to hold above the one
candle rule uh sort of area or the
support resistance line?
>> That's a good question. So when it holds
above both, right? So let's do that over
here. When it holds above two of them,
right? So it holds above the support and
it holds above this, this is a super
bullish trade, right? And this could be
considered an A+ setup, right? So the A+
setup is if it comes back and it holds
below both levels, right? Now, if it
holds above one, which is, you know,
let's say one, uh, which is maybe
support or resistance or the one candle
rule. Well, technically, if it holds
above support and resistance, it's
holding above the one candle rule. But
if it's holding above the one candle
rule, you have to be careful.
>> Okay? Why do you have to be careful? You
have to be careful because now you're
looking at price action. So let's say,
for example, we're going to zoom in on
this example here once again over here.
Okay? Actually, let me draw let me erase
this last one here.
So it's like this,
right? So this is the one candle rule,
right? This is the box and then we have
the support in here as well. Okay? Now
let's say in this area the stock came
down and it held the one candle rule
like this. Right? So the candlestick
closed above the one candle rule over
here. Okay? But it didn't close above
the support and resistance. Right? In
that scenario, you're waiting just a
little bit more. Okay? You're waiting
for the candlestick to show you buyers
reststepping into the stock and then you
enter, right? To have that really really
high confirmation entry. Now to make
this, we'll talk about this when the
examples come, but if we were to make
this a little bit more advanced,
obviously there's a couple things you
can look for such as higher time frames.
So if you were, for example, if this is
the 1 minute, but the 5minut looking
really really bullish, then of course
you can come down and maybe take that
more aggressive entry. Um, but this
would be the most conservative safe way
to play and that's just basically
waiting for it to break back above the
support resistance and then also coming
back into one candle rule and showing
that buyers are stepping up.
>> I got you. Yeah. So it's just having
that if anything extra patience. We
already explained how hard it is to
maybe just have patience for one candle
to close. So in this case to you need to
wait for it to turn into will it would
it still be classed as an A+ once it
confirms or is it more so it's still a
good setup and obviously valid trade to
take but the A+ is reserved for when
that one single candle has managed to
come down and then close above. So let
me ask let me ask you a question to
answer that question. So let's say for
example right for let's say for this one
let's say right when it comes up right
>> what what really happened here on the
one minute sure on the one minute right
we close below but what is a two-minute
looking like what's a five minute
looking like what's a you know what I'm
saying so on the one minute this is an
A+ example for sure right because on any
time frame because it's doing this on
the one minute it closed above that level
level
>> okay but on for example the five minute
this still may be an A+ setup because
technically the fiveminute candle didn't close
close
>> do you get what I'm saying So, it
depends on the context of the trade at
the time, right? It depends on what the
other time frames are doing. But, in my
opinion, that's still a really good
setup. I'd still classify that as an A
setup, maybe not an A+ setup, depending
on what the one minute's doing, what the
other time frames are doing. But, I
still consider that a good setup. Let's
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the episode. In terms of uh I know you
use this on the one minute and that's
what we're focused on, but as you
mentioned, like knowing traders who use
different time frames, is there any
differences you've noticed at all when
it comes to, you know, using higher time
frames, when it comes to execution? Mhm.
So for this once we get into the
example, so this exact strategy
basically was the reason that I was able
to make $100,000 on the Tesla trade that
we're going to talk about. It's a swing
position and that one was on the 4 hour
>> time frame. So we'll talk about that
when it comes into that. But this exact
this is the only example that we did
have a higher time frame for the other
ones we're going to talk about lower
time frame. So if you're scalping,
right, it's going to be easier for you
if you have a job, if you have school,
you know, you have work, other
commitments. the other systems and this
strategy does work right for that. But
if you want to swing trade as well,
right, then this is gonna going to be
good for you as well.
>> And you mentioned earlier though that
you're trading only between 9:30 ST to
11, right? Is that where you
specifically can use this or is that
just the window of opportunity you like
to focus on?
>> Yeah. So, when we're looking at 9:30 to
11 o'clock, there's a couple reasons I
trade that, right? So, the number one
reason I personally trade that is
because when you're looking at the New
York Stock Exchange open, where is the
most volume in the day? Right? It
literally stops at 11 a.m. After 11:00
a.m. there is basically no there is
volume, right? But you're gonna have you
there's no way I'm trading the one
minute after 11 a.m. Right? The one
minute is really good right into the
open quick moves, quick volume, fast
momentum in and out type of thing,
right? But and especially if you can
catch a good trade like this, for
example, let's say you catch this at
like let's say this was like for example
1 2 3 4 5 6 7 8 9 10 minutes into the
open, right? If you caught this trade
and this was a momentum day, sure we get
we talked about right that two hour
multiple, right? So this may have been
the two-our multiple at high of day,
right? You sell 25%. But now for the
rest of the day, you don't have to
monitor the trade. Let's say you take
25% out there, 50% out there. You're
already realized, right? You put your
stop basically right here, right? Your
stop doesn't change because market
structure doesn't change. And then you
just continue this trend to the upside.
So, yes, I trade from 9:30 to 11:00 a.m.
That's when I'm looking for an entry,
but I'm not looking for necessarily
looking for an exit before 11:00 a.m. I
may ride this trade all day, right?
Considering on how much strength it has,
looking for that upside move.
>> You get what I'm saying?
>> So, this is the bullish one candle rule.
Once again, this is going to make much
more sense when we get into the actual
examples, right?
>> Bearish would just be the other way around.
around.
>> And bearish simply would just be the
other way around. So, we don't have to
make this like a whole other thing. All
we're looking for bearish
is literally the for example, right? All
we're looking for is the down close
candles now. Okay? And then the up close
candle here, right? Something like this,
right? So if this was support,
the stock basically just has to break
back below, retest into this level,
right? And then you just mark out this
level right here. This is now the one
candle rule looking for the downside move.
move.
>> That's simple.
>> Okay, so that's the one candle rule.
We'll talk about this a little bit more
in the next examples. But let's go over
So the second setup we have here is the
first candle rule. Now, what is the
first candle rule? For the first candle
rule, what you're going to do is there's
two ways to play this. We're going to
talk about the new way that I've started
playing this cuz I for anyone that's
watched me before, you guys know the
five-minute opening range. But if you
haven't, right, we have the 5minute and
the 15-minute. Now, this one I've just
started talking more about online
because I think it's more precision,
especially in this market that we are in
currently. And so, for the first candle
rule, right, what you're going to do is
you have your first candle of the day,
right? It's your first candle of the
day. You're going to mark out the high
of that candle, okay? And you're going
to mark out the low of that first
candle. Now, you may ask, "What candle
is this?" This is the first 15minute candle.
candle.
Okay? So, the first 15-minute candle
from 9:30 a.m. Eastern time,
right? So, 9:30 a.m. Eastern when the
market opens, you draw out the first
high and low of the first 15-minute candle.
candle. >> Okay?
>> Okay?
>> Now, from this, we know, right? This
candle may have looked something like
this, right? And then let's say maybe it
went up
and like this. Okay, so it may have
looked something like that, right? And
what is this time frame? This time frame
is the five-minut time frame. Okay, so
from the 15m minute, this is how it the
candle developed on the 15. This is the
fiveminut time frame. Now on the fivem
minute time frame, there's three steps
to this, right? So first step is to draw
out the 15-minute candle. The second
step is to go over to the five minute
time frame. And now what we're looking
for is very simple. We're looking for
either a break above the 15-minut or
we're looking for a break below the
15-minute. Right? The and the best part
about this is you don't need a daily
bias. You don't need to come into the
day with, you know, a thesis or anything
like that. You can simply just trade the
price action that the day presents for
you. Right? Now, why are we looking for
the five-minute candle closure? We're
looking for the five-minute candle
closure because now this confirms that
buyers are indeed overpowering sellers
at this high. And what does this also
confirm? Because for the 15-minute,
right, we could also, some may say in
the comments, right, why don't you just
wait for the 15-minute candle to close
back above, right? That's 30 minutes in,
right? I got stuff to do in the day. I
can't do that. You know what I'm saying?
So, for me, the five minute works
because it is still enough precision and
it shows me that buyers indeed are
stepping in. Okay? And so second step,
wait for that fiveminute candle above or
below the 15-minute. And then the third
step over here, right? Is now we're
going to go over.
Let's draw this above like this, right?
And now we're just going to use the line
here, right? So for the five minute we
broke above, right? This is all that
that action that I showed you here. And
on the one minute, right? So this is the
one minute.
All we're looking for is like we talked
about at this point, the retest back
into the key level. Looking for
continuation. That simple. Okay. So,
we're looking for that either for that
bullish side or once again, you can look
for that downside as well. But why is
this a high confirmation entry model?
That's the key. This is high
confirmation because for the first 15
minutes, we let the market develop. We
know in the first 15 minutes, right? And
we in the previous example, we said that
we were done the day or we entered the
trade within the first 10 minutes.
that's a more bullish day, right? There
may be other confluences there on that
day, which we'll talk about when we get
to the examples, right? But for this
example, when you let and you come in
with no bias, nothing like you literally
just come in and you mark out that
15-minute opening uh range for the first
candle rule. We know that for this to
specifically work, we're getting rid of
all that first initial volume because
there may be too much volume, right? If
you're a brand new beginning trader,
right, you may not want to trade the
first 15 minutes. it may be too bull or
sorry it may be too volatile for you,
right? And so when we kind of get rid of
that 15 minutes and we rather use that
as support and resistance and we wait
for the 5minute candle closure, all of
that noise goes away, right? All of that
noise goes away and now we can simply
look for the retest on the one minute
exactly how we were earlier. Bearish
side, exact same, right? So, if you were
to based off these two setups that I've
shown you so far, right, which one would
you say is a little bit more simple to
understand for you at least for for both
of those so far?
>> I'd say this one stands out as more
simplistic, very specific, right?
Especially in terms of timing wise and
what you're looking for.
>> Mhm. Exactly. So, for this one, once
again, we're also trading 9:30,
>> right, to 11:00 a.m. That doesn't that
time frame doesn't change for us at all.
Right. And for this one, once again,
this is going to be much more precise in
choppier markets, right? So, one thing
that I that I didn't talk about yet is
what markets do I trade. So,
let's do three here. There's three type
of markets. Okay? The there's obviously
the bullish market to the upside, right?
There's the bearish market and then
there is this.
Okay? If you are a trader, one thing you
have to understand, depending on what
your strategy is, especially for this
strategy, we don't want to trade this,
right? This there's not enough momentum
in this range, right? You're going to
catch smaller moves because you're not
going to be able to catch continuation
as well. And so for us, we want to catch
days like this, trending, easy, simple
days that we can make the majority of
our money on. There's a lot of traders
even that ask me, they're like, "Well,
for example, if your strategy or your
system works so well, you have a high
win rate, whatever it may be, why can't
you trade every single day?" My win rate
is high because I don't trade these
days, right? It's high because you don't
have to come into the the market every
single day looking for a trade. You let
the trade present itself like I've shown
you in these last two setups. These
trades presented themselves to me. I
didn't have to come in and be like,
"Well, I'm looking for this. This could
theoretically be like a fair value gap.
Let me enter here." you know, it's very
systematic on what I'm doing. I'm
waiting for the entry, right? Very
mechanical. The only I would say for for
most of my setups that I'm going to talk
about today, majority of them,
>> I would say it's 90%
mechanical, right? And then 10%
discretionary. Okay? And the discretion
once again comes in when that entry is
happening and how the actual market is
moving and how the actual price action
is developing that you learn over time.
So this 10% is extremely important.
Don't get it wrong. It is very
important, right? But you're going to
learn this through experience. That
that's the only way you can learn this,
right? Like there's nothing else that
you can do except just keep consistently
trading these these systems and setups.
The 90% you can learn honestly within
three to six months, right? That this
part you can learn pretty quickly. this
part is gonna take you a little bit more time.
time. >> Definitely.
>> Definitely.
>> Yeah. And I think a lot of people don't
respect that, you know, don't respect
that. They hear it and then they think I
that's not me. I can be the one to you
speed that bit up, but they just have to
allow the time. Just to clear one thing
up though with this, does the candle
have to print exactly like this or is it
literally just whatever the high and low
of that? And when you say high and low,
is it the close or the wick?
>> Good question. Uh, that's a good
question. So for the 15-minute it the
candle can look like whatever it like
literally if the candle came in right it
was a dogey candle I don't care if it
was a bearish candle I don't care either
what I'm literally looking for is just
the break and re the break above on the
fivem minute right and then the retest
on the one minute that's all I'm looking
for so the candle itself can print
however it wants now in terms of should
you do the wick or the body this is
where this comes in
>> okay this is where that was a good
question this is where you need to
understand where you should have it.
Now, for the majority of new traders,
like we talked about technically, what
is this, right? So, let's say we do do
the actual uh uh wick here, right?
>> If this is a let's say we're moving to
the downside, right? We're moving to the
downside here. It broke to the downside.
Technically on the 15-minute, what did
this create? Right? We moved to the
downside. This is a green up close
candle. What did this create on the or
let's say on the five minute? This was
the one candle rule.
>> The setup that we talked about last
time, right? This is the one candle rule
now. So technically, right, you can draw
this out, but this the actual entry
would still be within this kind of small
zone here. That's one thing and that's
why this was a good question is because
you have to understand you're not going
to get that precise entry, right? We're
looking for those kind of small zones.
So whenever I do draw out support and
resistance, and I talk about this all
the time, when I draw out support and
resistance, that doesn't mean that I'm
trading that exact level. It's the small
zones around it that I'm trading. I'm
just not going to draw out the zone,
right? because there's no point of it,
right? You just kind of have to
understand that we're looking at that
kind of small zone and looking at price
action to gauge that entry.
>> No, I love what you mentioned there
though in terms of that's where
discretion comes in because I think a
lot of people assume, okay, something
has to always be the exact same all the
time. But as we know, like 90% of your
trades could be like that and probably
will be like that, but the market is
always so different and never identical.
And even if you have a specific system
and playbook like we've gone over now
too where they are specific, they have
specific times, specific rules of how to
you know observe and then execute upon.
But equally though the market is the
market. It always looks different and it
never is feels the same depending on the
day and the volatility or the catalyst
within that market or maybe even news on
that particular day
>> can make things slightly adjust you know
>> and being able to use that discretion
and I think again back to your point
which is so important is giving yourself
the time to build that right because it
comes from your repetitions right you
have to be able to observe the market
time over time over time to be able to
develop and again it's going the funny
thing is it's going to be different to
the person,
>> right? The same. Let's say you have
someone who started at the exact same
time as you, has traded the exact same
markets, time frames, everything.
They're going to have their own sort of
edge that they've noticed because of the
reps. That could be completely different
to yours. And neither's right or wrong.
It's actually right for each person
simply because that is their perception
and what they've been able to see within
the market. So, it's funny that you say
that because I trade break and retest
and he actually someone in the room also
trades break and retest with me, right?
We both learned, you know, very similar.
I I kind of taught him a little bit as
well, right? But for example, he caught
a Tesla trade today, right? That was or
sorry, an Nvidia trade today, right?
That was the break and retest using the
same setup that I'm teaching today,
right? But I caught an Nvidia trade,
which was a different trade today using
another setup, right, that we're going
to talk about today as well. Right? So,
similar to how you said, we trade the
exact same thing. We trade the exact
same thing. So why didn't I take that
Nvidia trade with him or why didn't he
take that Tesla trade with me? Right?
It's because this right here, okay? It's
because yes, it's mechanical, but every
single trader will see different things.
When you [snorts] trade this, for
example, the first candle rule, you may
trade this on ES, NQ, right? You may
trade this on Tesla, Apple. I trade
options and futures myself personally,
right? But whatever you trade this on,
this will work. It just depends on how
you specifically trade and most
importantly, right, how much experience
and how much back testing you've done to
really understand how to pinpoint these
entries because yes, it's simple, super
simple, but you need to understand that
the data will show you how to enter
without hesitation. That's the key.
>> Definitely. No, I love that and I think
it's so important because again, the 90%
is what we're going over right now. The
90% is what everyone most people at home
need to be implementing into their
trading whether it's this or some other
concept regardless that work on the 90%
needs to be done and I think what
happens is most people when they're
meant to be in this phase and focusing
on this phase they're too focused on
trying to do this
>> and by doing so they end up taking two
you know instead of doing let's say
three or four steps forward and one step
back as the usual sort of the right
journey is instead it's the classic one
step forward and two back or three back
because there so focused on trying to be
a dis, you know, use their discretion
when they haven't actually built the reps.
reps.
And I think discretion a lot of the time
people try and sort of relate to
intuition, which then a lot of people
relate to just how they feel,
>> you know? if they're on the one minute
chart and they I think this could be a
buy and then they just do it versus
again 90% of the work's done. You know,
you've built your reps, you you've
really understood the playbook and then
over time you got to a point where you
go actually I think I should execute in
this manner or I should be marking my
high or low in this manner. is based off
like you said back test, time, effort,
reps in the market when you've already
done this.
>> And again, back to I think a lot of
people unfortunately make the mistake of
trying to do this, focus too much on
this. And I think a large part of that
actually, you know, is the fact that a
lot of people who are trying to do this
bit is because they've already traded
for two, three years
>> and not seen results, but they assume
that that's reps, >> right?
>> right?
>> And I think that's a good thing to
highlight is that reps isn't just how
long you've been trading or, you know,
been interested in the markets. reps is
how long you've worked with an actual
specific playbook that has rules that
has a system and you've actually spent
time on that specific system, not just
as a trader as a whole. That's a perfect
point. I think I say this all the time.
Your trading doesn't begin until you
have one proven system. Before that,
you're gambling. Right? When you're
jumping from strategy to strategy,
you're simply gambling. There's nothing
that you're actually doing that is
working. Right? Because you may trade
the first candle rule one day, then
you're going to trade the one candle
rule, then you're going to trade the
next setup that I'm going to teach you,
then the next one, then the next one.
Like, you're just trading so much,
right? That it doesn't make you don't
even know what you're doing, right?
You're just looking to make money on
something, right? And that's not key.
It's about back testing all of the all
everything that I say today. You can go
and back test it, right? Like it's
pretty simple. I'm laying it all out. Go
back test these. See if it works, right?
Once you see it works, then start
forward testing it, right? That's how
you're actually going to see that
consistency over time. It's not just
going and and it like you said, it's not
just because you traded for 2 years
you're magically going to one day wake
up and be profitable, right? It's
putting in those smart work to become
profitable. Hard work doesn't always
mean that you're going to, you know,
make it. Like it's it's all about smart
work and hard work both combined and
then you see the actual proven results.
One thing I did want to mention just for
the discretionary here, sizing, right? A
lot of people talk about sizing. For the
first, all of these setups I I size the
same. So, for me, it's a little bit
different because obviously I've been
trading for a little while now. So, I
may come in with 50 to 100 contracts.
Okay, that's a decent amount. For
example, if you're trading Tesla, one
contract, for example, maybe $10, right?
So, like 100 contracts, that's a pretty
big position size for scalping intraday,
right? For most people that are brand
new, I genuinely recommend if you are a
brand new trader or you know, you've
been trading for a little while, but you
haven't really seen that consistency. I
typically recommend two to three
contracts. Right? The reason I recommend
two to three contracts, especially if
you're trading options, is due to the
fact that if you're trading two to three
contracts, you can learn the scaling out
of the trades as well. Because we talked
about, for example, this trade, if we
come back up to high of day, this may
give us a 1.5, right? This may not be
the 2 R that we're looking for. So you
scale one here, right? And then you let
the other one ride to the upside. That
other one may make you more than this
1.5. It may make you five R, sixR,
whatever it may be. Or it may come back
down, right? And you may lose money on
that trade. But it's about learning that
because if you can learn that with two
contracts, you're going to learn the
exact same lesson with those two that
you are with the 50 and 100. Right.
>> Less pain.
>> Exactly. Right. One of the things that I
always talk about is is the university
example. If I if me and you went to the
same university, right, with the same
course, same program. We even went to
the same parties together, right? We did
everything. We got the exact same
experience, but you paid $10,000 to go
to university for your tuition and I
paid $50,000. I would be pissed, you
know? I would be pissed, right? And the
reason that is is because we did the
exact same experience. So for most
people watching this, it doesn't matter
if you are have a really high income,
you know, job or whatever it may be,
right? this is what you want to do
because you still are going to learn the
same lessons with those two or three
cons that you're going to learn with 50
and 100. So I just wanted to make that
very clear just as risk management
especially if you're if you're learning
to trade. But that is the first candle
rule in a nutshell.
>> Love that. Yeah. No, that's a great
analogy by the way. That is it is.
>> So the final setup that I'm going to be
talking about for the third playbook is
going to be the pre-market setup. Now
what's the pre-market setup for me? you
know there's so people once again for
all these setups you can trade it on
crypto option you know options futures
um forex stocks whatever you want to do
it on like I said I trade futures and
options myself now when we're looking at
this for pre-market this is going to be
4:00 a.m.
to 9 I guess 9:29 right 9:28 a.m. and
that's going to be eastern timing. Okay,
so all the data that you have in between
these levels, right? Let's just say we
have this data in between these levels,
right? So we have a clear high and we
have a clear low in between these
levels. Now we know what's the time
right? I'm trading from 9:30
9:30
to 11
a.m. And then what's that final kind of
time frame right over here? Right, this
is going to be 11:00 a.m. to 4:00 p.m.
Okay, this is all in Eastern timing once
again. So when we look at this, this
data is now the exact same, right? So
what was happening in pre-market?
pre-market, of course, there's not too
much retail that's trading pre-market
session, right? If you're trading
pre-market session, you I don't know
what you're doing. Um, but you know,
when you're when you're trading
premarket, right? What are you looking
for? You're looking for these highs,
right? Same kind of scenario, right?
Highs and you're looking for the lows here.
here. >> Mhm.
>> Mhm.
>> Okay. Now, if we know 9:30 a.m. the
stock is breaking out of the pre-market
session, what does that mean? It means
instantly buyers stepped in. Right now,
this is going to be more of an
aggressive setup, you could say. Right?
You could be because you can trade this
like the first one or two minutes right
into open. Right? But when we see this,
what are we looking for? We're looking
for that instant pullback into that key
level. Okay? We're looking for that
instant pullback into that key level.
Looking for continuation to the upside.
That's it. Right? For this one, this
one's very, very simple. But this one,
if you are a more aggressive trader,
this is going to suit your personal
personality, right? sometimes and and
I'm going to preface this in a second
here, but for this one, sometimes what
happens is if the higher time frame and
we'll talk about this in the examples,
right? Let's say we have the 4our time
frame here. Okay, we have the 4hour time
frame here and on the 4hour time frame,
what we're seeing is a break above,
right? So, this is the 4hour kind of
uptrend here and then we're seeing this
kind of consolidation pattern like this.
What does this mean for us? Well, for us
this means you some people may call this
a bull flag, right? You can call it
whatever you want, right? You have the
resistance, you have the support. Now,
we know there's three ways a stock
moves. An uptrend, a downtrend, or
sideways action. So, sideways action,
like I said, I don't want to trade it,
but it's not bad because you need to
understand context behind sideways
action. So, for me, when I'm looking at
this sideways action, I know that buyers
have stepped up so aggressively here.
Okay. Now, what's going to happen?
Sellers, because we're coming near that
resistance, want to bring the stock
down. However, buyers don't want the
stock to come down. So, we're
consolidating. Why? Because this is
where that fair prices, right? Fair
prices over here. And also, we want to
keep this stock above this previous may
there be support here, whatever it may
be. Yeah.
>> Right. And so, when we see this and the
stock may be breaking out or gapping up,
right? Gap and go. We'll talk about that
in a second. Right. If the stock is
gapping up, what are going to be the
highest key, highest probability levels
right into open, right? We know the
first candle rule is there. We know the
one candle rule is there. But those are
intraday setups. We can't come into the
open and be like, "Okay, we're going to,
you know, get into this right away,
right? We got to wait for either the
5minut to close, 15-minute close, and
the one candle rule. We have to wait for
the the candle to develop." This one
right away we can get in, right? Because
we can get in the second it breaks above
the pre-market high. All we're looking
for is a retest. This may honestly the
first candle may be this one minute
right here. Right? We may have maybe one
more candle for a little bit more
displacement. And then this right here,
we're just looking for that retest.
That's it. Right? That simple. And then
we're looking for that upside movement
or we're looking for that downside movement.
movement.
>> That's it.
>> Right? So that's the pre that's the
pre-market setup. And then of course
this is going to be on the one minute
time frame as well. Now, there's a
couple things that I just want to clear
up before we do anything else. The
biggest question I get on YouTube uh for
all my videos is what option contracts
do you trade? I get that all the time.
If you trade options, if if you trade
futures, right, usually you can just
trade the same week. But for options,
what I'm looking for, right, is going to
be the one OTM
or the first one ATM.
Now, what does it stand for? Right. This
is out of the money contracts. This is
at the money contracts. For me, I am
typically buying the first at the money
contract or the first one out of the
money. Okay? I'm not buying in the
money. Why is that? Because if we're
looking at this break and retest, you
can see it's retesting over here. What
is going to make me more money? Right?
It's not in the money. In the money is a
super super safe thing to play, but it's
not going to make me the most money.
what's going to make me the most money
is going to be the out-of-the-oney
contract looking for continuation. So,
I'm going to enter in on that one out of
the money contract because if my
targets, for example, on this stock,
right, let's say it's 100 here, my
target's 101. Okay, this is the at the
money contract. The at the money is 100.
Okay? If I'm targeting 101 for my first
profit target, why would I not take one
out of the money? Because the second
that one out of the money comes into the
money, I make more money.
>> You get what I'm saying? So for anyone
that's always asking, right, I'm trading
one out of the money or one at the money
and I'm always trading, right, weekly
contracts, right? Other than if I'm
taking a swing, which we'll talk about
in the examples, I'm taking the weekly
contract. So that week, right? Let's say
it's Monday, I'm trading Friday's
contracts, right? Then let's say it's
Friday, I'm still probably trading
Friday's contracts. If the volatility is
too much and I don't like it, right?
Then I may trade the next Friday's
contracts. But I just wanted to make
that very clear. But this is the
pre-market setup. Let's take a break for
a minute there, guys, because I want to
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>> Cool. All right, I guess we're done with
the setups.
>> Yeah, we can do the pros and cons.
>> Again, when it comes to pros and cons, I
say this on every single episode. Cons
doesn't necessarily mean it's bad. It's more so just something to be aware of as
more so just something to be aware of as you probably know and no doubt will be
you probably know and no doubt will be the same today is 99% of our episodes
the same today is 99% of our episodes patience is always on the con side which
patience is always on the con side which obviously isn't a bad thing. It's more
obviously isn't a bad thing. It's more something that you just have to be aware
something that you just have to be aware of when looking to execute and implement
of when looking to execute and implement the playbooks that we've covered. So for
the playbooks that we've covered. So for pros, right, there's a couple things
pros, right, there's a couple things here. One thing that I really like about
here. One thing that I really like about this setup is that if you are a
this setup is that if you are a full-time student, if you have a
full-time student, if you have a full-time job, if you, you know, if you
full-time job, if you, you know, if you just can't sit at the market all day,
just can't sit at the market all day, right, this you're done the day quick,
right, this you're done the day quick, right? So, quick days.
right? So, quick days. >> Okay, quick days.
>> Okay, quick days. Even when we talk about the swing setup
Even when we talk about the swing setup that I'm going to talk about today, that
that I'm going to talk about today, that could technically still be a quick day
could technically still be a quick day because you don't have to, you know,
because you don't have to, you know, keep analyzing every like one minute
keep analyzing every like one minute candle. Like, you can be done the day
candle. Like, you can be done the day pretty quickly. You just have to enter
pretty quickly. You just have to enter and manage risk. We'll talk about that
and manage risk. We'll talk about that in a second. Right? So quick days is
in a second. Right? So quick days is number one for me at least. Like that is
number one for me at least. Like that is key. Number two, repeatable,
key. Number two, repeatable, >> right? So repeatable.
Hopefully >> it looks right there.
>> it looks right there. >> That looks about right. Repeatable,
>> That looks about right. Repeatable, right? So this is a repeatable and
right? So this is a repeatable and consistent strategy. Every single time
consistent strategy. Every single time that I trade this, I know for a fact
that I trade this, I know for a fact that I'm going to trade the same thing
that I'm going to trade the same thing every day. I'm not changing my entry
every day. I'm not changing my entry criteria. My entry criteria always
criteria. My entry criteria always remains the same. Number three, for me
remains the same. Number three, for me at least, right? Though it's quick,
at least, right? Though it's quick, though it's repeatable, the best thing
though it's repeatable, the best thing about it is it's simple, right? So no
about it is it's simple, right? So no matter what,
matter what, no matter what level of trading you are,
no matter what level of trading you are, right? And I know some traders that are
right? And I know some traders that are advanced that may trade order flow and
advanced that may trade order flow and they're like, bro, like that it's too
they're like, bro, like that it's too it's too easy. It's too simple, right?
it's too easy. It's too simple, right? It works, right? At the end of the day,
It works, right? At the end of the day, it works. And that's what you want. You
it works. And that's what you want. You want something that works. You don't you
want something that works. You don't you don't have to be the most advanced. At
don't have to be the most advanced. At the end of the day, when you're trading,
the end of the day, when you're trading, what do you want to do? You want to make
what do you want to do? You want to make money. And if if you want to make money,
money. And if if you want to make money, this is a very simple strategy that you
this is a very simple strategy that you can follow on a consistent basis to do
can follow on a consistent basis to do that. Okay. So, those are some pros that
that. Okay. So, those are some pros that I believe are good. In terms of cons,
I believe are good. In terms of cons, there's none. So, let's get to the No,
there's none. So, let's get to the No, I'm just kidding. [laughter]
I'm just kidding. [laughter] No. So, in terms of cons, right? There's
No. So, in terms of cons, right? There's a couple, right? So, number one is
a couple, right? So, number one is though it is extremely simple, though it
though it is extremely simple, though it is repeatable, and though you'll have
is repeatable, and though you'll have quick days, because you're having quick
quick days, because you're having quick days, you can't hesitate. Okay. So, has
days, you can't hesitate. Okay. So, has has
>> I didn't go to school. I rely on I rely on spell check on my
I rely on I rely on spell check on my >> I was like but hesitate right so if you
>> I was like but hesitate right so if you hesitate on an entry for examp like if
hesitate on an entry for examp like if we're looking at that the break and
we're looking at that the break and retest you hesitate on an entry where
retest you hesitate on an entry where your entry should have been here right
your entry should have been here right because we're trading momentum we're
because we're trading momentum we're trading before 11:00 by the time you
trading before 11:00 by the time you enter you may enter high of day just
enter you may enter high of day just because of how quick the stock moves
because of how quick the stock moves right so hesitation is not key in this
right so hesitation is not key in this now as a new trader you may hesitate I
now as a new trader you may hesitate I hesitated a lot especially as a new
hesitated a lot especially as a new trader if you go through draw down
trader if you go through draw down period periods, you will hesitate. Why?
period periods, you will hesitate. Why? Because you kind of almost have PTSD
Because you kind of almost have PTSD from your previous losses, right?
from your previous losses, right? Similar to a soldier, like you have PTSD
Similar to a soldier, like you have PTSD because, and you may not think this, but
because, and you may not think this, but because you've had so many losses
because you've had so many losses previously, you're scared to enter into
previously, you're scared to enter into these next trades because if it loses,
these next trades because if it loses, you may blow your account or whatever it
you may blow your account or whatever it may be. And the reason you think like
may be. And the reason you think like that is because you don't have a
that is because you don't have a consistent system. All you're doing is
consistent system. All you're doing is gambling. So, hesitation, you need to
gambling. So, hesitation, you need to get rid of that,
get rid of that, >> right? The second con that I would say
>> right? The second con that I would say that this one does have is that when
that this one does have is that when you're looking at trades like you have
you're looking at trades like you have to not only be quick like we talked
to not only be quick like we talked about, but it needs to have the same
about, but it needs to have the same repeatable setups, right? So for each
repeatable setups, right? So for each pro there's a con, right? So because
pro there's a con, right? So because it's repeatable, right? This is a con
it's repeatable, right? This is a con technically, right? But every single day
technically, right? But every single day you're going to come in and you're going
you're going to come in and you're going to do the same thing. What does that
to do the same thing. What does that mean?
mean? Boring.
Boring. >> Mhm.
>> Mhm. >> Right. Extremely boring. And that's what
>> Right. Extremely boring. And that's what trading should be. It should be
trading should be. It should be consistent and it should be boring,
consistent and it should be boring, right? I literally had a YouTube video
right? I literally had a YouTube video titled my boring strategy, right? You
titled my boring strategy, right? You know what I'm saying? Why? Because this
know what I'm saying? Why? Because this is an extremely boring strategy. You're
is an extremely boring strategy. You're doing the same thing. It shouldn't be
doing the same thing. It shouldn't be fun. You may make money and you may feel
fun. You may make money and you may feel good about it, but it shouldn't be a fun
good about it, but it shouldn't be a fun thing for you because it's so
thing for you because it's so repeatable. Every day you wake up, you
repeatable. Every day you wake up, you do the same thing. You let the market
do the same thing. You let the market develop and then you let the actual
develop and then you let the actual price action take it from there. Right?
price action take it from there. Right? when you take your entry, this doesn't
when you take your entry, this doesn't mean if you lose this and it's an A+
mean if you lose this and it's an A+ setup, that doesn't mean that you you
setup, that doesn't mean that you you may have necessarily done anything
may have necessarily done anything wrong. It's just the price action
wrong. It's just the price action playing out and the probabilities
playing out and the probabilities playing out,
playing out, >> right? So boring, I would say. And then
>> right? So boring, I would say. And then number three, right, for some traders,
number three, right, for some traders, right, because it's simple, they think
right, because it's simple, they think they want a little bit more advance. So
they want a little bit more advance. So I wouldn't say it's an advanced I I
I wouldn't say it's an advanced I I would say there's definitely confluences
would say there's definitely confluences that you need to learn though how simple
that you need to learn though how simple it is it's still going to take you you
it is it's still going to take you you know months to years to actually become
know months to years to actually become profitable doing this and consistent
profitable doing this and consistent doing this right so I would say that
doing this right so I would say that it's not an advanced strategy but
it's not an advanced strategy but because it is extremely simple right
because it is extremely simple right it's easy
to fall off right what do I mean by that
fall off right what do I mean by that right because it's so simple right it
right because it's so simple right it and trust me I've seen this happen
and trust me I've seen this happen multiple times where the strategy works
multiple times where the strategy works so well like especially for the last
so well like especially for the last couple months right now at the date of
couple months right now at the date of this recording right this the setups
this recording right this the setups that I've been telling you about right
that I've been telling you about right 80 to 85% win rate for myself live
80 to 85% win rate for myself live trading every single day in front of
trading every single day in front of thousands of people literally right and
thousands of people literally right and everyone's doing really well except this
everyone's doing really well except this last week right this last week it's
last week right this last week it's slowly coming down why is that win rate
slowly coming down why is that win rate coming down because the market's being a
coming down because the market's being a little bit more choppy now when that's
little bit more choppy now when that's coming down what's happening because the
coming down what's happening because the market's coming down it's easy to fall
market's coming down it's easy to fall off of using that one strategy because
off of using that one strategy because once again we know it's boring. We know
once again we know it's boring. We know if you hesitate on the entry you may
if you hesitate on the entry you may miss them and now you put in a choppy
miss them and now you put in a choppy choppy market on top of that super
choppy market on top of that super news-driven whatever it may be right
news-driven whatever it may be right you're jumping from strategy to strategy
you're jumping from strategy to strategy right so I would say that would be a con
right so I would say that would be a con right just trying to stick to one and I
right just trying to stick to one and I wouldn't even say that's a con of the
wouldn't even say that's a con of the strategy to be honest I've just seen it
strategy to be honest I've just seen it happen so that's why I wanted to put it
happen so that's why I wanted to put it here like as a trader if you're trading
here like as a trader if you're trading one strategy right you want to stick to
one strategy right you want to stick to that one and that's why I'm going to
that one and that's why I'm going to write that one over here
write that one over here >> no definitely no I think it's a it's a
>> no definitely no I think it's a it's a really good point and one thing I will
really good point and one thing I will say in terms of you did mention let's
say in terms of you did mention let's say if you're doing it as the scalp side
say if you're doing it as the scalp side um and sort of the more intraday side.
um and sort of the more intraday side. The quick days though a pro if you do
The quick days though a pro if you do have a job during that window might be
have a job during that window might be hard to execute but equally as you
hard to execute but equally as you mentioned already you can just step up
mentioned already you can just step up time frames to then eliminate that as a
time frames to then eliminate that as a as a con or something to worry about. Um
as a con or something to worry about. Um but yeah love that. Now we're going to
but yeah love that. Now we're going to go over actual trade examples right um
go over actual trade examples right um of the playbooks that you've gone over.
of the playbooks that you've gone over. One of which being that 100k trade.
One of which being that 100k trade. >> Yep. Now, we're going to go through some
>> Yep. Now, we're going to go through some actual trade examples that emulate the
actual trade examples that emulate the same trade playbooks that Raph went over
same trade playbooks that Raph went over here on the whiteboard, but on the
here on the whiteboard, but on the actual charts, and these are setups that
actual charts, and these are setups that he's actually taken as well. So, let's
he's actually taken as well. So, let's get straight into it. Cool. So, on the
get straight into it. Cool. So, on the first example here, we're on Tesla.
first example here, we're on Tesla. Every example today is going to be on
Every example today is going to be on Tesla just because it honestly, if I was
Tesla just because it honestly, if I was to go back and look at how much money I
to go back and look at how much money I made throughout my career, I would test
made throughout my career, I would test 70 to 80% is on Tesla to be honest.
70 to 80% is on Tesla to be honest. Incredible. So, it's just one of the
Incredible. So, it's just one of the stocks I like the most. The first one
stocks I like the most. The first one we're going to use is the first candle
we're going to use is the first candle rule. Right? So, when we talk about the
rule. Right? So, when we talk about the first candle rule, right? You can see
first candle rule, right? You can see here we're on the 15-minut time frame.
here we're on the 15-minut time frame. And what we have to do is just wait for
And what we have to do is just wait for the first 15-minute candle to develop.
the first 15-minute candle to develop. Right? So, let's open this up. Boom.
Right? So, let's open this up. Boom. Now, remember you talked about how can
Now, remember you talked about how can the candle form? What should you be
the candle form? What should you be looking for? This is the candle. Right?
looking for? This is the candle. Right? Now, this candle I wouldn't say is
Now, this candle I wouldn't say is bearish. I wouldn't say it's the most
bearish. I wouldn't say it's the most bullish either, right? More of a
bullish either, right? More of a hammerstick type of candle. Um, so what
hammerstick type of candle. Um, so what we're going to do is mark out the high
we're going to do is mark out the high up here. Okay? And then we're going to
up here. Okay? And then we're going to mark out the low.
mark out the low. Okay? Just like that. Now, what we're
Okay? Just like that. Now, what we're looking for here is simply going to be
looking for here is simply going to be the break above the retest and
the break above the retest and continuation, right? To either side,
continuation, right? To either side, either the upside or to the downside.
either the upside or to the downside. But we're not looking at it on the
But we're not looking at it on the 15-minut. We're just marking out the
15-minut. We're just marking out the 15-minut. Now, we hop on over up here to
15-minut. Now, we hop on over up here to the fivem minute time frame. Now, you
the fivem minute time frame. Now, you can see on the five minute, we see a
can see on the five minute, we see a little bit more data, right? So you can
little bit more data, right? So you can see we opened up here, moved to the
see we opened up here, moved to the upside, sellers stepped in, right? So
upside, sellers stepped in, right? So let me make this clear. Sellers stepped
let me make this clear. Sellers stepped in here. Then you can see how aggressive
in here. Then you can see how aggressive those sellers were to the downside
those sellers were to the downside creating that 15-minute low. And then
creating that 15-minute low. And then buyers stepped in again. And now we're
buyers stepped in again. And now we're in that range of the 15-minute. Now in
in that range of the 15-minute. Now in this 15minute range, we do not want to
this 15minute range, we do not want to trade anything, right? That's just not
trade anything, right? That's just not key for us. We don't want to trade
key for us. We don't want to trade anything there. So what we want to do
anything there. So what we want to do now is wait for the break and the
now is wait for the break and the retest. Most specifically right now we
retest. Most specifically right now we want to wait for step two. Right? So
want to wait for step two. Right? So step one is obviously enter waiting for
step one is obviously enter waiting for the 15 minute to develop. Now that it's
the 15 minute to develop. Now that it's developed we will go over to the five
developed we will go over to the five minute which we are right now and we're
minute which we are right now and we're simply going to play out the actual
simply going to play out the actual price action. Now in this example here
price action. Now in this example here what do we see? We broke above right. So
what do we see? We broke above right. So this is where people get confused. You
this is where people get confused. You broke above right on the five but it
broke above right on the five but it didn't close. Notice how I always talk
didn't close. Notice how I always talk about candle closures. This one did not
about candle closures. This one did not close above showing what though it's a
close above showing what though it's a green candle. We opened up here. Buyers
green candle. We opened up here. Buyers aggressively brought it up but sellers
aggressively brought it up but sellers were still able to close the fiveminute
were still able to close the fiveminute below. And this is why this is such a
below. And this is why this is such a precise entry. This is why you can get
precise entry. This is why you can get really really, you know, a high win rate
really really, you know, a high win rate with this strategy because you're
with this strategy because you're waiting for that confirmation as well.
waiting for that confirmation as well. Okay. So, let's keep playing out this
Okay. So, let's keep playing out this trade.
trade. >> So, in this case though, even though it
>> So, in this case though, even though it went above, it's not invalidated the
went above, it's not invalidated the setup. It doesn't need to you don't need
setup. It doesn't need to you don't need to change the high or low. You just need
to change the high or low. You just need to wait for a close above or below.
to wait for a close above or below. >> Exactly. Just wait. Just wait for this.
>> Exactly. Just wait. Just wait for this. Let's keep playing this out.
Let's keep playing this out. So right here we now get that break
So right here we now get that break above. Okay. So key, we get the break
above. Okay. So key, we get the break above. This is the fiveminute break. Now
above. This is the fiveminute break. Now yes, it didn't break this previous high.
yes, it didn't break this previous high. Doesn't matter, right? Because now we
Doesn't matter, right? Because now we understand that buyers brought this
understand that buyers brought this above. Sellers try to step in. Buyers
above. Sellers try to step in. Buyers are still aggressive, right? So now we
are still aggressive, right? So now we move over to the one minute time frame.
move over to the one minute time frame. Now on the one minute time frame, what
Now on the one minute time frame, what are we looking for now? We're looking
are we looking for now? We're looking for the break and retest. If you want to
for the break and retest. If you want to get a little bit even more advanced with
get a little bit even more advanced with this one, right? And once again, this is
this one, right? And once again, this is just adding confluences. You're really
just adding confluences. You're really just looking for the retest into this
just looking for the retest into this level, right? Because this is the this
level, right? Because this is the this is the down close candle, right? Highest
is the down close candle, right? Highest previous down candle, right? Other than
previous down candle, right? Other than obviously this one, this is the highest
obviously this one, this is the highest previous down candle in this scenario,
previous down candle in this scenario, right? And then you would want to retest
right? And then you would want to retest back into this previous support turn or
back into this previous support turn or sorry, resistance turn support. Okay.
sorry, resistance turn support. Okay. So, play this out
So, play this out right there. Right. What do we get? We
right there. Right. What do we get? We break above.
break above. We come back for the retest. Strong
We come back for the retest. Strong lower wicks. Right. Strong lower wicks.
lower wicks. Right. Strong lower wicks. Now, this one, buyers and sellers, I
Now, this one, buyers and sellers, I would say, are both neutral. But this
would say, are both neutral. But this one already showed that buyers are
one already showed that buyers are strong.
strong. >> Yeah.
>> Yeah. >> So, for me, what am I looking for? I'm
>> So, for me, what am I looking for? I'm looking for an entry here.
looking for an entry here. >> This is because we know that the stock
>> This is because we know that the stock is overall strong. We know that it tried
is overall strong. We know that it tried to break above, wasn't able to. Now,
to break above, wasn't able to. Now, this time we broke above and now we are
this time we broke above and now we are retesting not only right the 15-minute
retesting not only right the 15-minute open, but we're also retesting that one
open, but we're also retesting that one candle rule. So, a lot of confirmation
candle rule. So, a lot of confirmation there. Price action is confirming as
there. Price action is confirming as well. We enter into that buy position
well. We enter into that buy position right here. Okay. Now, when we're
right here. Okay. Now, when we're entering into a buy position on a stock
entering into a buy position on a stock or on a trade like this, right, what are
or on a trade like this, right, what are we looking for? Like I said, we need to
we looking for? Like I said, we need to have at least that two-our multiple,
have at least that two-our multiple, right? So, if we're looking for that
right? So, if we're looking for that long position here, where would where
long position here, where would where would you put your stop loss? Just
would you put your stop loss? Just curious. Where would you
curious. Where would you >> me personally I would probably look to
>> me personally I would probably look to put it below this low. See this large
put it below this low. See this large green candle the one that closed above
green candle the one that closed above the resistance
the resistance >> 100%. Right? So right here because this
>> 100%. Right? So right here because this is where the structure break will occur,
is where the structure break will occur, right? Because not even the structure
right? Because not even the structure break necessarily because we're on the
break necessarily because we're on the one minute but this is where the loss of
one minute but this is where the loss of momentum will occur. This is something
momentum will occur. This is something that I talk about a lot um within my
that I talk about a lot um within my channel like just the loss of momentum
channel like just the loss of momentum compared to the break of structure,
compared to the break of structure, right? So like for example technically
right? So like for example technically on the fiveminute breakup structure may
on the fiveminute breakup structure may occur over here, right? or change of
occur over here, right? or change of character you know that that I depend on
character you know that that I depend on how you use it you know whatever you but
how you use it you know whatever you but for me I call it breaking so it would
for me I call it breaking so it would occur right over here technically right
occur right over here technically right but loss of momentum this is the
but loss of momentum this is the previous you know uh higher low yeah
previous you know uh higher low yeah right so that's where I would put it and
right so that's where I would put it and then we need at least a two-hour
then we need at least a two-hour multiple now in this example you can see
multiple now in this example you can see high of day only gives us like less than
high of day only gives us like less than like a one hour so for me that's just
like a one hour so for me that's just not you know okay I might still take
not you know okay I might still take some off at high of day right just to
some off at high of day right just to lock in some profit so that may be a
lock in some profit so that may be a lower percentage for me right but what
lower percentage for me right but what I'm looking for is that 2 right now in
I'm looking for is that 2 right now in this example simple, I would target
this example simple, I would target 360s. Now, you're going to ask why would
360s. Now, you're going to ask why would I target 360s? Two reasons. Number one,
I target 360s? Two reasons. Number one, that's where the 2-R multiple comes the
that's where the 2-R multiple comes the most close to, but number two, and the
most close to, but number two, and the most important part with the 360, it's a
most important part with the 360, it's a whole psychological number. Now, when a
whole psychological number. Now, when a stock is moving in, you know, some
stock is moving in, you know, some traders overco complicate this.
traders overco complicate this. >> When you first started trading or
>> When you first started trading or investing, right, and you bought Apple
investing, right, and you bought Apple shares or Tesla shares, you didn't buy
shares or Tesla shares, you didn't buy them because you wanted to, you know,
them because you wanted to, you know, uh, or say you didn't buy them at a
uh, or say you didn't buy them at a specific like price like you didn't buy
specific like price like you didn't buy them at 358.25,
them at 358.25, right? You bought them at 355, 356,
right? You bought them at 355, 356, whole numbers, right? That's what
whole numbers, right? That's what institutions are doing too, you know,
institutions are doing too, you know, and they may buy through obviously these
and they may buy through obviously these key levels, right? But those whole
key levels, right? But those whole psychological numbers, there's usually a
psychological numbers, there's usually a lot of volume sitting at the levels. And
lot of volume sitting at the levels. And so that's what I'm willing to target
so that's what I'm willing to target here. Okay? So take profit up here,
here. Okay? So take profit up here, right? Stop loss down here.
right? Stop loss down here. >> Right? So you can see in this example,
>> Right? So you can see in this example, we're risking $1,000 essentially for
we're risking $1,000 essentially for $2,350.
$2,350. That simple, right? We're already into
That simple, right? We're already into that buy position. Now all we got to do
that buy position. Now all we got to do is play it out.
is play it out. You can see already buyers aggressively
You can see already buyers aggressively stepping in there and boom, just done
stepping in there and boom, just done like that. Right? So, you can see this
like that. Right? So, you can see this day, where do we exit off? We stopped.
day, where do we exit off? We stopped. If you were to close that whole trade at
If you were to close that whole trade at that 360, right? You were done at 10:16.
that 360, right? You were done at 10:16. Market opens at 10 uh 9:30. You were
Market opens at 10 uh 9:30. You were done in less than an hour. You can go
done in less than an hour. You can go enjoy the rest of your day. That simple,
enjoy the rest of your day. That simple, right? Now, this trade once again,
right? Now, this trade once again, >> though, this is hindsight technically on
>> though, this is hindsight technically on replay. Right? You can see right here
replay. Right? You can see right here the exact times that I actually did
the exact times that I actually did enter. Once again, this is done live
enter. Once again, this is done live every day, right? So, you can see 36750
every day, right? So, you can see 36750 calls. You the price right here was
calls. You the price right here was about 357s, right? So, I was going like
about 357s, right? So, I was going like one out of the money on this one, right?
one out of the money on this one, right? Uh, sorry, 357, right? So, I was going
Uh, sorry, 357, right? So, I was going one out of the money on this one or one
one out of the money on this one or one at the money uh at this time, right? 357
at the money uh at this time, right? 357 calls looking for continuation. You can
calls looking for continuation. You can see I saw that 10:08 a.m., right? Same
see I saw that 10:08 a.m., right? Same stock that we just saw breakout retest,
stock that we just saw breakout retest, right? And then that continuation to the
right? And then that continuation to the upside and this one, right? You can see
upside and this one, right? You can see Tesla high of day, 360 is coming in. Um,
Tesla high of day, 360 is coming in. Um, and then you can see this one actually
and then you can see this one actually resulted in about $11,350
resulted in about $11,350 on this Tesla trade. 35750 calls, right?
on this Tesla trade. 35750 calls, right? And then I had a 10 trailer position,
And then I had a 10 trailer position, right? So though I was out, right,
right? So though I was out, right, majority of my position at 360, I had 10
majority of my position at 360, I had 10 trailers left for the rest of the day,
trailers left for the rest of the day, right? And if we actually ended up
right? And if we actually ended up playing this trade out,
playing this trade out, right, you can see the rest of the day
right, you can see the rest of the day actually ended up coming back to the
actually ended up coming back to the upside here,
upside here, >> right? And I think I stopped out of this
>> right? And I think I stopped out of this trade total, right? Did I trail your
trade total, right? Did I trail your stop?
stop? >> It was like right here, right? So, I was
>> It was like right here, right? So, I was able to capture essentially,
able to capture essentially, >> right, another 0.53 or 1.93 on the
>> right, another 0.53 or 1.93 on the actual stock just by holding those,
actual stock just by holding those, right? And the stop loss like you said,
right? And the stop loss like you said, right? Just trailers and you're
right? Just trailers and you're basically just looking for that break
basically just looking for that break again of structure on the one minute or
again of structure on the one minute or five minute. But that was basically this
five minute. But that was basically this full trade. This is the first candle
full trade. This is the first candle rule. Super simple to follow. You're
rule. Super simple to follow. You're basically just looking for strong price
basically just looking for strong price action and then you can have other
action and then you can have other confirmations in it as well.
confirmations in it as well. >> Definitely. But from execution, in terms
>> Definitely. But from execution, in terms of executing the trade to essentially
of executing the trade to essentially your initial target, you're talking 11
your initial target, you're talking 11 over $11,000 in the space of roughly 10
over $11,000 in the space of roughly 10 minutes around there. But as you said
minutes around there. But as you said though, rightly so, from where your
though, rightly so, from where your thesis began about 45 minutes, which is
thesis began about 45 minutes, which is still incredible, right?
still incredible, right? >> But again, to go back to your original
>> But again, to go back to your original point earlier, you beginners out there,
point earlier, you beginners out there, you start lower, right? That's the
you start lower, right? That's the result of years of building those reps,
result of years of building those reps, building that discretion eventually as
building that discretion eventually as well through those reps. Um, but
well through those reps. Um, but regardless though, the reason I
regardless though, the reason I highlight that is to show you simple
highlight that is to show you simple trading and the results it can bring
trading and the results it can bring when you put in the work.
when you put in the work. >> 100%. 100%. So this one, this was the
>> 100%. 100%. So this one, this was the first candle rule. Super simple. For
first candle rule. Super simple. For this one, I would say this trade cuz I
this one, I would say this trade cuz I technically entered in around that 100
technically entered in around that 100 10:09 10:08 candle around here, right?
10:09 10:08 candle around here, right? And so technically this trade for the
And so technically this trade for the full trade took about an hour, right?
full trade took about an hour, right? But I was off I was actually off the
But I was off I was actually off the desk to be honest. I was off the desk at
desk to be honest. I was off the desk at like 10:20, right? So for me technically
like 10:20, right? So for me technically it took 10 minutes. like you said, it
it took 10 minutes. like you said, it took 10 minutes, $10,000, $11,000, and I
took 10 minutes, $10,000, $11,000, and I called it a day, right? So, technically
called it a day, right? So, technically it was $1,000 a minute, right? But but
it was $1,000 a minute, right? But but you don't look at trading that way. It's
you don't look at trading that way. It's based off one thing I heard was um and I
based off one thing I heard was um and I always tell everyone this that now that
always tell everyone this that now that trading you're you're making money based
trading you're you're making money based off of decisions. You're not trading
off of decisions. You're not trading your time for money, right? So, the the
your time for money, right? So, the the reason I say $1,000 a minute is kind of
reason I say $1,000 a minute is kind of a joke cuz it's like such a high amount
a joke cuz it's like such a high amount to be doing, right? But that came after
to be doing, right? But that came after seven years, right? So if you average it
seven years, right? So if you average it out, you know what I'm saying? So, but
out, you know what I'm saying? So, but this is important to kind of mention as
this is important to kind of mention as well, right, that this was a 1 hour
well, right, that this was a 1 hour trade, but technically the majority of
trade, but technically the majority of the money was made within 10 minutes.
the money was made within 10 minutes. >> Exactly. Yeah. Now, to your point, it's
>> Exactly. Yeah. Now, to your point, it's a great sound bite, but the reality is,
a great sound bite, but the reality is, as you say, once you get to that level,
as you say, once you get to that level, it's not even about the time and it's
it's not even about the time and it's just a it's a process thing, right? The
just a it's a process thing, right? The process is paying you that much. And it
process is paying you that much. And it is still remarkable because at the end
is still remarkable because at the end of the day the reason we get into
of the day the reason we get into trading or majority of people if not
trading or majority of people if not everyone gets into trading to be able to
everyone gets into trading to be able to make money like that because if you so
make money like that because if you so decided that I'm done for the month that
decided that I'm done for the month that is you know that is more than the
is you know that is more than the average salary for example and that is
average salary for example and that is you know enough to live off if but then
you know enough to live off if but then it really really comes back to the fact
it really really comes back to the fact that the real traders and the ones who
that the real traders and the ones who want to reach the high levels that's not
want to reach the high levels that's not their mindset anyway. They're not even
their mindset anyway. They're not even looking at the money. They're focused on
looking at the money. They're focused on their performance.
their performance. >> Yeah. uh as a trader and how well their
>> Yeah. uh as a trader and how well their decision-m was as you as you said.
decision-m was as you as you said. >> 100%. Nowadays, like to be honest, my
>> 100%. Nowadays, like to be honest, my main focus is just like trying to get
main focus is just like trying to get precise like really really good entries.
precise like really really good entries. Like I talked about earlier, you don't
Like I talked about earlier, you don't you don't need precise entries in the
you don't need precise entries in the beginning. Just enter based off of what
beginning. Just enter based off of what you're looking at. But like now I think
you're looking at. But like now I think after you know years and years of
after you know years and years of trading, like my main goal is like we've
trading, like my main goal is like we've already done the money run, we've
already done the money run, we've already done everything else. Like now I
already done everything else. Like now I really just want to get those really
really just want to get those really precise entries to really lock in those,
precise entries to really lock in those, you know, those bigger profits uh and
you know, those bigger profits uh and even those exits, right? So, this was
even those exits, right? So, this was the first trade um for the first candle
the first trade um for the first candle rule. Right now, what we'll do is we'll
rule. Right now, what we'll do is we'll go to the pre-market session or the
go to the pre-market session or the pre-market strategy and then we'll
pre-market strategy and then we'll finish off with the $100,000 Tesla
finish off with the $100,000 Tesla trade, which was the one candle rule.
trade, which was the one candle rule. So, here we are on the second example.
So, here we are on the second example. On this example, we're going to be
On this example, we're going to be looking at the pre-market session. Now,
looking at the pre-market session. Now, you can see the pre-market session, like
you can see the pre-market session, like I talked about, right? Opens up at 4:00
I talked about, right? Opens up at 4:00 a.m. Eastern and it's done at about 9:29
a.m. Eastern and it's done at about 9:29 a.m. Eastern. What we're going to do is
a.m. Eastern. What we're going to do is draw out once again that resistance and
draw out once again that resistance and support, right? So the resistance here,
support, right? So the resistance here, right, is let me actually
right, is let me actually the resistance here, okay, is going to
the resistance here, okay, is going to be this green line, okay? And that's
be this green line, okay? And that's going to be the pre-market high. For our
going to be the pre-market high. For our support, it is going to be the
support, it is going to be the pre-market low.
pre-market low. Now, right into open, we don't have to
Now, right into open, we don't have to change time frames for this one. This
change time frames for this one. This one, we're on the one minute. We can
one, we're on the one minute. We can stay on the one minute. If you want to
stay on the one minute. If you want to trade the five minute, you can do that
trade the five minute, you can do that as well. For us, we're going to use the
as well. For us, we're going to use the one minute because that's what I
one minute because that's what I personally use myself. Okay. Now, when
personally use myself. Okay. Now, when we're looking at this, what do we want?
we're looking at this, what do we want? Once again, very simple break above,
Once again, very simple break above, retest, continuation. Now, for this one,
retest, continuation. Now, for this one, it's important to mention for this, you
it's important to mention for this, you are specifically looking for strong
are specifically looking for strong price action right off the bat. Okay?
price action right off the bat. Okay? So, what we're looking for is basically
So, what we're looking for is basically the candlestick to develop
the candlestick to develop >> and show us right in within like the
>> and show us right in within like the first five minutes that the market does
first five minutes that the market does want to move and push up, right? The
want to move and push up, right? The reason this is is because you can see
reason this is is because you can see this market is gapping up. Okay, so I
this market is gapping up. Okay, so I said that we were going to talk about
said that we were going to talk about that in a second here. This is the the
that in a second here. This is the the the example, right? So this market
the example, right? So this market gapped up the day or on the Friday
gapped up the day or on the Friday previously, right? This is the Tuesday.
previously, right? This is the Tuesday. So this was a long weekend, right? And
So this was a long weekend, right? And when we gapped up over that Friday, this
when we gapped up over that Friday, this is the level that's going to be the most
is the level that's going to be the most high probability. Now, another setup
high probability. Now, another setup that some people trade is going to be
that some people trade is going to be the previous day high, previous day low,
the previous day high, previous day low, right? and the previous day high would
right? and the previous day high would be around like this 343 level. Great
be around like this 343 level. Great setup to trade as well, right? But for
setup to trade as well, right? But for these days that you do gap up, what are
these days that you do gap up, what are going to be the levels that every single
going to be the levels that every single trader is looking at? It's going to be
trader is looking at? It's going to be the pre-market high and pre-market low,
the pre-market high and pre-market low, right? Because that's the levels that
right? Because that's the levels that you have before the market even opens.
you have before the market even opens. Okay, so now what we're going to do is
Okay, so now what we're going to do is we're going to open up the trade once
we're going to open up the trade once again and we're going to see exactly
again and we're going to see exactly what happens here.
Boom. Right right off the bat, what do you see? buyers aggressively step in,
you see? buyers aggressively step in, right? Just like I mentioned, buyers
right? Just like I mentioned, buyers need to show you that they're stepping
need to show you that they're stepping in aggressively, and that's how you
in aggressively, and that's how you trade the pre-market uh retest. That's
trade the pre-market uh retest. That's going to be the highest probability way
going to be the highest probability way to trade pre-market retest as well.
to trade pre-market retest as well. Okay, so now what we're looking for,
Okay, so now what we're looking for, like we know, is the retest back into
like we know, is the retest back into the level. Now, you know, a lot of
the level. Now, you know, a lot of traders, they'll see this and they'll
traders, they'll see this and they'll look at, you know, for example, this
look at, you know, for example, this first like 931 candle, try to get in on
first like 931 candle, try to get in on that good candle, right? If if the
that good candle, right? If if the higher time frame is very very bullish,
higher time frame is very very bullish, you could even potentially look to get
you could even potentially look to get in on that candle, looking for that
in on that candle, looking for that quick move up, right? But what I like is
quick move up, right? But what I like is displacement, right? Now, what's
displacement, right? Now, what's displacement?
displacement? Displacement is the move after
Displacement is the move after resistance. So, this is resistance.
resistance. So, this is resistance. Displacement would occur on this move.
Displacement would occur on this move. Right? Let me actually do this. Right?
Right? Let me actually do this. Right? This to this is displacement. Okay? So
This to this is displacement. Okay? So when this is displacement, we need to
when this is displacement, we need to make sure buyers are stepping up
make sure buyers are stepping up aggressively breaking above. Right? This
aggressively breaking above. Right? This once again shows us that interaction
once again shows us that interaction between buyers and sellers and then
between buyers and sellers and then we're looking for the retest back into
we're looking for the retest back into the level. If you don't get displacement
the level. If you don't get displacement and you get an instant retest like this
and you get an instant retest like this candle right here, it's a decent retest,
candle right here, it's a decent retest, right? if the higher time frame is
right? if the higher time frame is aggressive enough for you to take that.
aggressive enough for you to take that. But if it's not, then you need to wait
But if it's not, then you need to wait for displacement, especially in this
for displacement, especially in this example right here, even though we saw
example right here, even though we saw very very strong price action right off
very very strong price action right off the bat.
the bat. >> Would you say a lot of the time if you
>> Would you say a lot of the time if you don't wait for that displacement and you
don't wait for that displacement and you take the first one as mentioned here,
take the first one as mentioned here, the risk-to-reward unless you're, you
the risk-to-reward unless you're, you know, again going back to our previous
know, again going back to our previous example, kind of targeting the one to
example, kind of targeting the one to two,
two, >> the risk-reward to high of day at that
>> the risk-reward to high of day at that point would always be really really low
point would always be really really low >> 100%. So, so there are some trades that
>> 100%. So, so there are some trades that I may take like that, right, that are
I may take like that, right, that are like very very quickly, but the
like very very quickly, but the risk-to-reward only stays high and like
risk-to-reward only stays high and like I said if the higher time frames there.
I said if the higher time frames there. So, if you're looking at higher time
So, if you're looking at higher time frame liquidity levels, right? Uh, which
frame liquidity levels, right? Uh, which we'll talk about in the next example.
we'll talk about in the next example. Actually, that's going to be the swing
Actually, that's going to be the swing trade. Um, right? So, we'll talk about
trade. Um, right? So, we'll talk about that in a second. But when you're
that in a second. But when you're looking at higher time frame liquidity
looking at higher time frame liquidity levels and you're looking at that
levels and you're looking at that specifically, that's when you're going
specifically, that's when you're going to get those, you know, those bigger
to get those, you know, those bigger trades. Um, but without that, right,
trades. Um, but without that, right, then displacement is what you need.
then displacement is what you need. Okay? So in this example, you can see
Okay? So in this example, you can see the breakout. You can see we're coming
the breakout. You can see we're coming back for the retest. You can also
back for the retest. You can also technically see, right? And notice how
technically see, right? And notice how in every example so far, you've seen the
in every example so far, you've seen the same thing, the one candle rule, right?
same thing, the one candle rule, right? And someone's like, how where do you see
And someone's like, how where do you see the one candle rule? This down coast
the one candle rule? This down coast candle, right? So yes, it is retesting
candle, right? So yes, it is retesting back into the pre-market high as well.
back into the pre-market high as well. But we actually have the one candle rule
But we actually have the one candle rule here as well, right?
here as well, right? So in this example, what am I looking to
So in this example, what am I looking to do? Right? break above, retest, strong
do? Right? break above, retest, strong price action in the one candle rule with
price action in the one candle rule with the pre-market session. So many
the pre-market session. So many different confluences making this a
different confluences making this a super high probability setup for me.
super high probability setup for me. Right? So I'm looking to enter into the
Right? So I'm looking to enter into the trade here.
trade here. Okay, our stop loss does have to be a
Okay, our stop loss does have to be a break below this key level. Right? Our
break below this key level. Right? Our stop loss doesn't have to be low of day,
stop loss doesn't have to be low of day, right? The a lot of people come in and
right? The a lot of people come in and they think their stop loss has to be so
they think their stop loss has to be so your stop loss shouldn't be too tight.
your stop loss shouldn't be too tight. It also shouldn't be too big. It's got
It also shouldn't be too big. It's got to be that perfect balance and you'll
to be that perfect balance and you'll learn that over time. In my opinion on
learn that over time. In my opinion on this trade, it just needs to be a little
this trade, it just needs to be a little bit below this previous 349 level,
bit below this previous 349 level, right? You could even honestly just have
right? You could even honestly just have it right at 349 itself, right? But for
it right at 349 itself, right? But for me, right, the 349 is fine. Or you can
me, right, the 349 is fine. Or you can just have it literally at a break of the
just have it literally at a break of the structure of 34980s. Okay? And then for
structure of 34980s. Okay? And then for our profit target, right, high of day on
our profit target, right, high of day on this example actually does give us about
this example actually does give us about a three R multiple. Meaning for every
a three R multiple. Meaning for every $100 of brisk, we're going to make $300
$100 of brisk, we're going to make $300 of profit, right? So, that's something
of profit, right? So, that's something that you can target. I do know when
that you can target. I do know when we'll talk about how I took this trade
we'll talk about how I took this trade after this was a $25,000 trade for me
after this was a $25,000 trade for me and uh this one ran pretty aggressively
and uh this one ran pretty aggressively afterwards, right? But for this example
afterwards, right? But for this example to simplify everything to make sure you
to simplify everything to make sure you guys just understand how to trade it,
guys just understand how to trade it, this is what we're looking for. Very
this is what we're looking for. Very simple. Okay, so we will look to buy
simple. Okay, so we will look to buy into the position here. Stop loss just
into the position here. Stop loss just like I said right over here and profit
like I said right over here and profit target
target right up at highs right here. Okay, so
right up at highs right here. Okay, so let's enter into this trade and let's
let's enter into this trade and let's see exactly what happens.
Right, how fast was that? Okay, right into your profit target. You enter in on
into your profit target. You enter in on this candle 1 2 2 minutes you're done.
this candle 1 2 2 minutes you're done. >> You're done the day with this is what
>> You're done the day with this is what 9:41 10 minutes. So this strategy for
9:41 10 minutes. So this strategy for those people that have jobs, whatever it
those people that have jobs, whatever it may be, jobs, school, other work
may be, jobs, school, other work commitments, this is the best. If the
commitments, this is the best. If the market is trending and aggressive, this
market is trending and aggressive, this is only the best when the market is
is only the best when the market is trending and aggressive. When the market
trending and aggressive. When the market is not aggressive, you know, buy side or
is not aggressive, you know, buy side or sell side, then you want we may look at
sell side, then you want we may look at those other setups like I talked about
those other setups like I talked about and that's why I have that playbook for
and that's why I have that playbook for me that I can trade different market
me that I can trade different market cycles, right? But this one, you can see
cycles, right? But this one, you can see very, very aggressive. This one pushed
very, very aggressive. This one pushed up really nicely and we were done the
up really nicely and we were done the day within two minutes and we can call
day within two minutes and we can call it a day now. This one actually did end
it a day now. This one actually did end up moving to the upside really, really
up moving to the upside really, really nicely. So, you can see May 27th, right?
nicely. So, you can see May 27th, right? This was the $25,000 trade on Tesla. If
This was the $25,000 trade on Tesla. If I actually open this up really quickly.
I actually open this up really quickly. >> What's up, guys? Welcome back.
>> What's up, guys? Welcome back. >> Sorry. I just wanted to show you guys
>> Sorry. I just wanted to show you guys right this one right where we entered.
right this one right where we entered. Okay. Right over here, right? That one
Okay. Right over here, right? That one candle rule/ the premarket session. You
candle rule/ the premarket session. You can see I had it on that day as well,
can see I had it on that day as well, right? We enter in here and then you can
right? We enter in here and then you can see the continuation this thing had
see the continuation this thing had afterwards. And when you were talking
afterwards. And when you were talking about that liquidity and how do you find
about that liquidity and how do you find it? You can see this 360 that we had
it? You can see this 360 that we had this 35479 key level, right? We had this
this 35479 key level, right? We had this 35479 key level from the higher time
35479 key level from the higher time frame which we'll talk about in the next
frame which we'll talk about in the next example. Got it.
example. Got it. >> But this is basically how I took this
>> But this is basically how I took this trade and this was a a solid trade done
trade and this was a a solid trade done pretty quickly.
pretty quickly. >> Definitely. Yeah. Well, $10,000 in 2
>> Definitely. Yeah. Well, $10,000 in 2 minutes. Again though, I think what
minutes. Again though, I think what you're paid for as you mentioned earlier
you're paid for as you mentioned earlier is your decision- making and the speed
is your decision- making and the speed of that and the confidence of that
of that and the confidence of that because in this case as you mentioned
because in this case as you mentioned earlier as a con hesitation like this is
earlier as a con hesitation like this is a prime example of if you hesitate even
a prime example of if you hesitate even for a moment even though it's the one
for a moment even though it's the one minute chart and yes you may have you
minute chart and yes you may have you know about two two minutes there to
know about two two minutes there to really get your entry in
really get your entry in >> regardless I imagine in real time you've
>> regardless I imagine in real time you've seen this explosion at the market open
seen this explosion at the market open to the upside you know then you see
to the upside you know then you see price kind of slow back come back and
price kind of slow back come back and pull back to that level you know that
pull back to that level you know that quite quite a bearish candle even if
quite quite a bearish candle even if it's on the one minute quite a bearish
it's on the one minute quite a bearish candle before the entry is still meant
candle before the entry is still meant to take place. I can imagine you,
to take place. I can imagine you, especially a newer trader, seeing that
especially a newer trader, seeing that and start hesitating, thinking, "Oh,
and start hesitating, thinking, "Oh, ones if we're collapsing, once if this
ones if we're collapsing, once if this is a fake out, etc., etc." So, you're
is a fake out, etc., etc." So, you're paid really. It sounds cool as a sound
paid really. It sounds cool as a sound bite. $10,000, 2 minutes, but really,
bite. $10,000, 2 minutes, but really, you're paid for your execution. You're
you're paid for your execution. You're paid for with all the time and effort
paid for with all the time and effort you put in and probably the times where
you put in and probably the times where you went through that doubt, but still
you went through that doubt, but still pushed through. Um, yeah. Yeah. You can
pushed through. Um, yeah. Yeah. You can see how a simple, yes, it's simple,
see how a simple, yes, it's simple, right? Going back to that point, it's
right? Going back to that point, it's simple, but and even the execution is
simple, but and even the execution is simple, but it's being able to fight
simple, but it's being able to fight those inner demons. I bet in terms of
those inner demons. I bet in terms of like, oh, maybe let me wait for an extra
like, oh, maybe let me wait for an extra confirmation. Let me just wait a moment.
confirmation. Let me just wait a moment. Or maybe, you know, maybe not. Maybe I
Or maybe, you know, maybe not. Maybe I should just hold back. But in reality,
should just hold back. But in reality, if you do, as you see here, you're going
if you do, as you see here, you're going to miss the trade, right? By the time
to miss the trade, right? By the time you've got over that, the trade's
you've got over that, the trade's already happened. And then what ends up
already happened. And then what ends up happening, no doubt, for those people
happening, no doubt, for those people who end up in that situation is they
who end up in that situation is they then start chasing, right? And then
then start chasing, right? And then that's how you end up back back to where
that's how you end up back back to where you were and and having losses. And back
you were and and having losses. And back to your point earlier, PTSD, you know,
to your point earlier, PTSD, you know, that's where that builds up from. Well,
that's where that builds up from. Well, I think that's going back to your point
I think that's going back to your point in terms of control the contract size to
in terms of control the contract size to begin with whilst you learn will
begin with whilst you learn will probably, I imagine, help to, you know,
probably, I imagine, help to, you know, hopefully help to remove those emotions
hopefully help to remove those emotions and the hesitation a bit as you build
and the hesitation a bit as you build your confidence up.
your confidence up. >> 100%. And one thing I wanted to mention
>> 100%. And one thing I wanted to mention on that point was, so let's say you
on that point was, so let's say you hesitated on this entry. Well, one thing
hesitated on this entry. Well, one thing before I even talk about that, like you
before I even talk about that, like you mentioned earlier in the day, when you
mentioned earlier in the day, when you see this, you already know this is the
see this, you already know this is the stock you're focusing on, right? That's
stock you're focusing on, right? That's the key, right? Boiling down the stocks
the key, right? Boiling down the stocks you're focusing on. So, coming into the
you're focusing on. So, coming into the day, I'm looking at like three to four
day, I'm looking at like three to four stocks, right? But then I'll boil down
stocks, right? But then I'll boil down to like the one or two right at the
to like the one or two right at the beginning of the morning that's showing
beginning of the morning that's showing the most strength or weakness, right?
the most strength or weakness, right? And then based off of that, I'm looking
And then based off of that, I'm looking for an entry. So, yes, the entry was
for an entry. So, yes, the entry was within one or two minutes here, right?
within one or two minutes here, right? For sure. But I had so much time to plan
For sure. But I had so much time to plan the trade, right? Plan the trade, trade
the trade, right? Plan the trade, trade the plan. That's it. Right? So when you
the plan. That's it. Right? So when you plan the trade, you see it coming up,
plan the trade, you see it coming up, you see the displacement, you know it
you see the displacement, you know it needs to retest this level, right? So
needs to retest this level, right? So there's nothing to fear. You know it
there's nothing to fear. You know it needs to pull back. It can pull back
needs to pull back. It can pull back however it likes to. Obviously, we need
however it likes to. Obviously, we need to look at price action in there. And
to look at price action in there. And then when it comes back, lowrisk entry,
then when it comes back, lowrisk entry, you see the entry, enter. That's it.
you see the entry, enter. That's it. Right? Because the low the closer you're
Right? Because the low the closer you're entering into that uh resistance
entering into that uh resistance support, the better your risk-to-reward
support, the better your risk-to-reward will be, right? the more money you'll
will be, right? the more money you'll make, right? But you just got to get rid
make, right? But you just got to get rid of that fear. Now,
of that fear. Now, >> the point that I was going to mention
>> the point that I was going to mention was, let's say you hesitated on this
was, let's say you hesitated on this entry. If you hesitated and you entered
entry. If you hesitated and you entered in at the high of this candle close or
in at the high of this candle close or maybe even the open of this candle,
maybe even the open of this candle, right? We're up from our original entry,
right? We're up from our original entry, right? Even if it's coming down, but you
right? Even if it's coming down, but you enter here, especially on option
enter here, especially on option contracts because the way option
contracts because the way option contracts work, right? The delta starts
contracts work, right? The delta starts moving up to the upside. Especially as
moving up to the upside. Especially as as the stock moves aggressively to the
as the stock moves aggressively to the upside, you want to start selling,
upside, you want to start selling, right? you sell into strength on
right? you sell into strength on options, right? With futures, it's
options, right? With futures, it's fixed. With options, because you have
fixed. With options, because you have Greeks, you want to sell into strength.
Greeks, you want to sell into strength. So, if you're buying into strength on
So, if you're buying into strength on options, when that comes back down, your
options, when that comes back down, your option contract is cooked, [laughter]
option contract is cooked, [laughter] you know, like it's it's done. So,
you know, like it's it's done. So, that's why having this retest, this is
that's why having this retest, this is the key. The breakout with options
the key. The breakout with options works. I've seen some people trade it.
works. I've seen some people trade it. Doesn't have the highest win rate in my
Doesn't have the highest win rate in my opinion. The retest has a high win rate.
opinion. The retest has a high win rate. It has higher probability chance of it
It has higher probability chance of it winning. uh sorry, high win rate and it
winning. uh sorry, high win rate and it has a high risk-to-reward as well. Yeah.
has a high risk-to-reward as well. Yeah. Right. And as long as it has those two
Right. And as long as it has those two factors for me, that's the highest uh
factors for me, that's the highest uh setup or the best thing for me to trade
setup or the best thing for me to trade consistently day over day over day.
consistently day over day over day. >> Yeah.
>> Yeah. >> Right.
>> Right. >> So, this is going to be that trade. Once
>> So, this is going to be that trade. Once again, if I actually end up playing this
again, if I actually end up playing this one out for a couple minutes here, you
one out for a couple minutes here, you can see it holds that one candle rule
can see it holds that one candle rule and then just aggressively pushes to the
and then just aggressively pushes to the upside. Right. So, that's this trade.
upside. Right. So, that's this trade. This was the uh the pre-market session.
This was the uh the pre-market session. We talked about the first candle rule as
We talked about the first candle rule as well. Now, we can finally get into the
well. Now, we can finally get into the trade that you've most likely been
trade that you've most likely been waiting for, which is that Tesla swing
waiting for, which is that Tesla swing position that I had. This was a $100,000
position that I had. This was a $100,000 plus trade. Uh, and this was also using
plus trade. Uh, and this was also using the one candle rule and the higher time
the one candle rule and the higher time frame. So, let's get into that. So, here
frame. So, let's get into that. So, here is the final trade that we're going to
is the final trade that we're going to be talking about today. This is the one
be talking about today. This is the one candle rule. This was a Tesla trade I
candle rule. This was a Tesla trade I took. A lot of you guys that may have
took. A lot of you guys that may have been watching this may have seen this
been watching this may have seen this trade that I took, right? This was a
trade that I took, right? This was a $100,000 trade, but how did I set this
$100,000 trade, but how did I set this up to actually make that money, right?
up to actually make that money, right? And what did I do that helped me stay in
And what did I do that helped me stay in the trade? That's the key as well,
the trade? That's the key as well, because you'll see in the the price
because you'll see in the the price action here, most people would have sold
action here, most people would have sold either too quickly or too late. What did
either too quickly or too late. What did I see in Tesla? There's a couple
I see in Tesla? There's a couple confluences I want to talk about before
confluences I want to talk about before the one candle rule. Number one,
the one candle rule. Number one, earnings. Okay, so Tesla had earnings.
earnings. Okay, so Tesla had earnings. Though they did not beat their earnings,
Though they did not beat their earnings, right? They actually did not beat their
right? They actually did not beat their earnings. We saw right after earnings an
earnings. We saw right after earnings an aggressive push up. Now, this is where
aggressive push up. Now, this is where experience comes in, right? This Tesla
experience comes in, right? This Tesla trade after or actually a little bit
trade after or actually a little bit before earnings. I took this uh before
before earnings. I took this uh before Trump came into office, right? And that
Trump came into office, right? And that was last year. It was my biggest trade.
was last year. It was my biggest trade. It was like $140,000 trade last year,
It was like $140,000 trade last year, right? Uh that I took. And uh funny
right? Uh that I took. And uh funny enough, Umar took the same trade. He
enough, Umar took the same trade. He made $10 million. We won't talk about
made $10 million. We won't talk about that, right? But so so I took that trade
that, right? But so so I took that trade right last year knowing right that Trump
right last year knowing right that Trump was going to benefit Tesla at that point
was going to benefit Tesla at that point right that was the sentiment plus there
right that was the sentiment plus there was some setups with the for that one it
was some setups with the for that one it was actually the the U one candle rule
was actually the the U one candle rule as well plus a bull flag but this one
as well plus a bull flag but this one exact same setup occurring so what was
exact same setup occurring so what was the setup earnings we see strong price
the setup earnings we see strong price action and then that consolidation like
action and then that consolidation like I talked about earlier the stock can
I talked about earlier the stock can only move up down or sideways when you
only move up down or sideways when you see a stock move up and sideways it
see a stock move up and sideways it means buyers don't want it to come back
means buyers don't want it to come back and dip below. So when this started
and dip below. So when this started developing, I'm like, what are they
developing, I'm like, what are they trying to hold? Why are buyers trying to
trying to hold? Why are buyers trying to aggressively push it to the upside? You
aggressively push it to the upside? You have to think about context clues,
have to think about context clues, right? Context clues are really
right? Context clues are really important for me. What I realized was,
important for me. What I realized was, okay, Tesla very, very big downtrend for
okay, Tesla very, very big downtrend for the recent couple, you know, let's say a
the recent couple, you know, let's say a couple months, right?
couple months, right? But then now we kind of based in this
But then now we kind of based in this range, right? So we're kind of basing in
range, right? So we're kind of basing in range. Now, we don't want to be in range
range. Now, we don't want to be in range specifically, right? But in the last,
specifically, right? But in the last, let's say, you know, two weeks, Tesla
let's say, you know, two weeks, Tesla actually ended up coming back to the
actually ended up coming back to the upside aggressively back into this
upside aggressively back into this resistance. So, what does that tell me?
resistance. So, what does that tell me? If that resistance breaks now, we're
If that resistance breaks now, we're going to see a lot of momentum.
going to see a lot of momentum. Remember, we're on the 4 hour time frame
Remember, we're on the 4 hour time frame this time. We're not on the 1 minute.
this time. We're not on the 1 minute. We're on the 4 hour time frame. Okay.
We're on the 4 hour time frame. Okay. So, how did I enter into this trade?
So, how did I enter into this trade? Well, we need to look for the lowest
Well, we need to look for the lowest risk entries. Even when we're swinging
risk entries. Even when we're swinging trading, right? For me, we look for the
trading, right? For me, we look for the highest down close candle. The previous
highest down close candle. The previous highest down close candle. This occurs
highest down close candle. This occurs at this pivot structure right here.
at this pivot structure right here. Right? So, you see this pivot structure
Right? So, you see this pivot structure and this down close candle right here.
and this down close candle right here. You literally just draw this out and you
You literally just draw this out and you can see this is exactly where the stock
can see this is exactly where the stock is basing. Right? The stock is basing at
is basing. Right? The stock is basing at this key level. So, when we see this key
this key level. So, when we see this key level and the stock basing, we also see
level and the stock basing, we also see that this is kind of putting in a flag
that this is kind of putting in a flag pattern. Right? Now, this isn't
pattern. Right? Now, this isn't something that I may necessarily look at
something that I may necessarily look at and be like, "This is this is my entry
and be like, "This is this is my entry signal." But there's confluences, right?
signal." But there's confluences, right? We see the resistance kind of forming.
We see the resistance kind of forming. We see the support. We see the one
We see the support. We see the one candle rule as well. And then we also
candle rule as well. And then we also see that Tesla had earnings and we had a
see that Tesla had earnings and we had a really aggressive push up. So, there was
really aggressive push up. So, there was fundamental news about this that helped
fundamental news about this that helped it push up. And then there was
it push up. And then there was technicals that were backing it. Okay.
technicals that were backing it. Okay. So, this gave me a little bit more
So, this gave me a little bit more confluence to enter my trade. And for
confluence to enter my trade. And for this one, I just want to show you guys,
this one, I just want to show you guys, right, we can see we're on May 2nd here.
right, we can see we're on May 2nd here. Okay, May 2nd. And you can see May 2nd
Okay, May 2nd. And you can see May 2nd right at 12:00 I said Tesla swing thesis
right at 12:00 I said Tesla swing thesis earnings good right the earnings weren't
earnings good right the earnings weren't good but the reaction to earnings was
good but the reaction to earnings was good higher time frame flag pattern
good higher time frame flag pattern after uptrend with downtrend 4hour break
after uptrend with downtrend 4hour break at same level lower risk trade but also
at same level lower risk trade but also uh if this works it can run right we'll
uh if this works it can run right we'll most likely take one to two weeks out
most likely take one to two weeks out contracts waiting for more price action
contracts waiting for more price action but this looks good we'll let you know
but this looks good we'll let you know exact cons when I enter look at what was
exact cons when I enter look at what was going on right the exact setup that I'm
going on right the exact setup that I'm showing you right this is that one
showing you right this is that one candle I just decided to draw it out the
candle I just decided to draw it out the red lines, right? But this is the exact
red lines, right? But this is the exact setup that I'm showing you here. So,
setup that I'm showing you here. So, what did I do? I entered into this
what did I do? I entered into this trade, right? And where was I looking to
trade, right? And where was I looking to target and what was my stop loss for
target and what was my stop loss for this? It's the exact same on the 4 hour
this? It's the exact same on the 4 hour and the 1 hour that you would do on the
and the 1 hour that you would do on the one minute. Okay? So, what I'm looking
one minute. Okay? So, what I'm looking for here is that entry, my stop loss is
for here is that entry, my stop loss is a break below the one candle rule. Okay?
a break below the one candle rule. Okay? And then my profit target here, right,
And then my profit target here, right, can be these highs up here. And plus,
can be these highs up here. And plus, for me at least, my main targets
was this level right here, right? This kind of 326 key level. 326. Now, this is
kind of 326 key level. 326. Now, this is a 2.07 risk-to-reward trade. And some
a 2.07 risk-to-reward trade. And some people may be like, "Wait, you made
people may be like, "Wait, you made $100,000, but you only did 2 R, right?
$100,000, but you only did 2 R, right? Very, very key to remember. Yes, I
Very, very key to remember. Yes, I didn't uh yes, technically this trade is
didn't uh yes, technically this trade is 2 R, but you'll see why it's not 2 R
2 R, but you'll see why it's not 2 R when we actually get into how I entered
when we actually get into how I entered and the specifics of it, right? Okay, so
and the specifics of it, right? Okay, so higher time frame wise, technically a
higher time frame wise, technically a two-hour trade what I'm risking. But
two-hour trade what I'm risking. But when it actually ended up coming down, I
when it actually ended up coming down, I actually ended up entering in a bigger
actually ended up entering in a bigger position. So this is a starter position
position. So this is a starter position on the swing, but you'll see how I
on the swing, but you'll see how I entered in a bit. Right? So I just want
entered in a bit. Right? So I just want to play this trade out just so you kind
to play this trade out just so you kind of see how it works out. Right? So you
of see how it works out. Right? So you can see right here, right? This was May
can see right here, right? This was May 5th when it dipped, right? So May
5th when it dipped, right? So May 5th/May 6th is when it dipped, right? We
5th/May 6th is when it dipped, right? We can see uh this once again I just said
can see uh this once again I just said May 16 295 calls, right? And then I said
May 16 295 calls, right? And then I said taking Tesla 295 calls. You can see this
taking Tesla 295 calls. You can see this May 2nd, right? You can see the exact
May 2nd, right? You can see the exact time frame. This is no editing or
time frame. This is no editing or anything. 12:14 targets will be pivot
anything. 12:14 targets will be pivot highs, right? And I said the exact
highs, right? And I said the exact contracts that I'm swinging now. You can
contracts that I'm swinging now. You can see the trade started working out.
see the trade started working out. Whatever it may be, I want to show you
Whatever it may be, I want to show you guys here May 5th, right? At 2:36,
guys here May 5th, right? At 2:36, right? This is where I entered in my
right? This is where I entered in my second position. Now, I trade from 9:30
second position. Now, I trade from 9:30 to 11:00 a.m., but this is a swing
to 11:00 a.m., but this is a swing position, so I'm just entering in when
position, so I'm just entering in when the trade actually validates its level,
the trade actually validates its level, right? Added my full position on Tesla.
right? Added my full position on Tesla. Looking good for a move to the upside.
Looking good for a move to the upside. stop is clear at the 270 level. Once
stop is clear at the 270 level. Once again, that one candle rule, right,
again, that one candle rule, right, being shown very, very clearly here. And
being shown very, very clearly here. And you can see the targets 32750s and the
you can see the targets 32750s and the key targets that you'd scale out of if
key targets that you'd scale out of if you want as well. You can also see how
you want as well. You can also see how the risk-to-reward now changes, right?
the risk-to-reward now changes, right? Because now I'm in my full position.
Because now I'm in my full position. Earlier I was in a starter position.
Earlier I was in a starter position. This is my full position. Okay, so
This is my full position. Okay, so starter position up here, right near
starter position up here, right near this area. Now full position in here,
this area. Now full position in here, right? So let's just average this out
right? So let's just average this out like down here about a 3.5 to about four
like down here about a 3.5 to about four trade. Okay, now you start playing this
trade. Okay, now you start playing this trade out, right? Gaps up, right, within
trade out, right? Gaps up, right, within the following like 3 4 days, right? Ends
the following like 3 4 days, right? Ends up gapping up, moving up into our profit
up gapping up, moving up into our profit target. This trade took about maybe a
target. This trade took about maybe a week and a half to develop fully, right?
week and a half to develop fully, right? But this was a solid trade to the
But this was a solid trade to the upside. Now, if we look over here,
upside. Now, if we look over here, right, you can see green line equals
right, you can see green line equals take profit. You can see exactly where
take profit. You can see exactly where the takerit were. You can see exactly
the takerit were. You can see exactly where the stop is. No editing or
where the stop is. No editing or anything on this as well, right? This
anything on this as well, right? This was Tesla. So, this was the day Tesla
was Tesla. So, this was the day Tesla opened up. Tesla first PT hit, right? I
opened up. Tesla first PT hit, right? I was guiding them through I was guiding
was guiding them through I was guiding through this trade the whole time,
through this trade the whole time, right? But you can see $50,000 swing and
right? But you can see $50,000 swing and this was just half the position, right?
this was just half the position, right? But this is where I started taking some
But this is where I started taking some off, right? $50,000
off, right? $50,000 on the what day was this?
on the what day was this? >> On the on the 9th, right? So $50,000 and
>> On the on the 9th, right? So $50,000 and then as it kind of continued to the
then as it kind of continued to the upside 64,000 and then it ended up being
upside 64,000 and then it ended up being 67 and then it ended up being 75 and 80
67 and then it ended up being 75 and 80 and 100, right? But those just it took a
and 100, right? But those just it took a couple more days um to to finally get up
couple more days um to to finally get up to those kind of key levels. Yeah, you
to those kind of key levels. Yeah, you can see here, right? So this is the
can see here, right? So this is the following day, right? So $16,000. So
following day, right? So $16,000. So 80,000 plus 16,000 ended up being over
80,000 plus 16,000 ended up being over $100,000 trade. And now you can see just
$100,000 trade. And now you can see just I had a trailer position as well.
I had a trailer position as well. >> So that was basically that full Tesla
>> So that was basically that full Tesla swing trade. Same strategy, right? Super
swing trade. Same strategy, right? Super super simple strategy. Just
super simple strategy. Just understanding where buyers and sellers
understanding where buyers and sellers are interacting is the main objective of
are interacting is the main objective of this. But once you understand that, you
this. But once you understand that, you can trade basically any time frame, any
can trade basically any time frame, any market, any instrument, right? And it's
market, any instrument, right? And it's a super simplified way to do it as long
a super simplified way to do it as long as you have the discipline and patience
as you have the discipline and patience to actually execute your setups and
to actually execute your setups and don't hesitate when they do come.
don't hesitate when they do come. >> Yeah, definitely. I love that. And in
>> Yeah, definitely. I love that. And in terms of the the levels that you're
terms of the the levels that you're choosing out for TPS and even in this
choosing out for TPS and even in this case, the the entry um or the area to
case, the the entry um or the area to look for. So it's based off where price
look for. So it's based off where price has interacted before and shown
has interacted before and shown movements before is where you're going
movements before is where you're going to highlight to use for targets or entry
to highlight to use for targets or entry areas.
areas. >> Correct? 100%. And for this one, you can
>> Correct? 100%. And for this one, you can see like this was mainly done on the
see like this was mainly done on the higher time frame. Yeah. Um right. So 4
higher time frame. Yeah. Um right. So 4 hour, but like like I said, this is good
hour, but like like I said, this is good for once again those people that have
for once again those people that have jobs or whatever, they don't want to,
jobs or whatever, they don't want to, you know, look and sit at the markets
you know, look and sit at the markets too long. They can do this. They want
too long. They can do this. They want to, you know, maybe just trade the first
to, you know, maybe just trade the first like the opening, they can do that as
like the opening, they can do that as well with other setups as well. or even
well with other setups as well. or even this setup they can do it with right
this setup they can do it with right until 11:00 a.m. So, there's multiple
until 11:00 a.m. So, there's multiple ways to play this. I just think that
ways to play this. I just think that it's a really really uh it's a proven
it's a really really uh it's a proven system first of all, but I think it's a
system first of all, but I think it's a very simple system as long as you can
very simple system as long as you can execute it. Yeah. Right. As long as you
execute it. Yeah. Right. As long as you follow the one set, that's it. That's
follow the one set, that's it. That's basically the key.
basically the key. >> Raph, I appreciate it. I know there's,
>> Raph, I appreciate it. I know there's, you know, ton of value for everyone at
you know, ton of value for everyone at home as well. Drop a comment of your
home as well. Drop a comment of your biggest takeaway from this episode. But
biggest takeaway from this episode. But any questions as well that you have,
any questions as well that you have, well, drop them in the comments below.
well, drop them in the comments below. Myself, Raph, will be taking a look at
Myself, Raph, will be taking a look at that. But links for Raph will be in the
that. But links for Raph will be in the description below. So make sure you
description below. So make sure you check them out. There are other episodes
check them out. There are other episodes on screen right now. But make sure you
on screen right now. But make sure you hit like. Make sure you hit subscribe.
hit like. Make sure you hit subscribe. We have more playbooks coming to you.
We have more playbooks coming to you. And until next time, everyone, it's been
And until next time, everyone, it's been Charatics. Take a
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