The ONE Trading Strategy You MUST Understand. Do NOT Trade Without It

hey traders Alex on here and I am back with a new video for you all and I’ve been away for quite quite quite some time now I’m had a couple of things that’s been going on which I won’t bore you with for now, but maybe at some point I can talk to you all about it, but anyway I’m back ready and raring to go and what I wanted to do to start off some of the new videos, I’m going to be bringing you is just kick it off with a really really fantastic trading tip that you can use whether you’re a day trader or more of a swing trade as a trader to basically improve your improve your strike rate and improve your odds of success it’s very very simple it’s a straightforward concept, but I think it’s something that too few traders really kind of take a look at and that’s this concept of key levels okay, so we know that we look at supports from resistance levels and people like you know buy support or sell resistance and all of that, but it they don’t really think about the psychology behind it they don’t really think about why these types of trades work and I think, if you kind of really understand and you really gets into the trade, then you’ll have more confidence in it and obviously, then your trading will improve and, if you look at this from a day trading perspective, then I’m giving you a way to literally immediately eliminate half of your losses, because you, if you follow this principle that, I’m about to show you you will take out the ability for the market to hurt you by you trading in the wrong direction during your day trade, so I’m just basically this video is going to be about increasing your odds whether you’re a day trader or a swing trader or whatever is it you want to do, so anyway let’s jump over to the charts and really just look at an example here now I have the dollar yen in front of me you can see that I’ve got three charts here the moving average is not important here you know even the chart timeframes I guess aren’t really the important, because you can apply this principle to any timeframe now what it what we want to do okay is we want to be looking for key levels on the longer-term charts ie something like the daily chart or the 4-hour chart now I know that I said that the timeframe doesn’t matter and what I mean by that the timeframe doesn’t matter for the chart that you’re going to be trading, so you’ll pick your key levels on the longest chant, but then, if you choose to apply the principle to you know a five minute day trading chart or a 60 minute swing chart it really doesn’t make a difference, because you will be putting yourself in a position to be taking higher probability trades which means obviously your strike rate is going to go up your win rates you’ll be winning more trades than you lose and, then hence your bottom line will be affected as well, so be impacted in a positive way, so you’ll have more money in your account and hopefully for those of you that have been struggling with trading for a while you’ll start to be able to actually take money out of your account as opposed to be putting in it and topping you up all of the time, because of your losses, so anyway let’s go back to this and let’s pick a daily chart all right as our partners our charts are picked the key levels now what you want to be doing right is you want to find key levels that that the markets pay attention to and I’m not talking about these kind of smaller in significant swing levels like this guy over here or this guy over here I’m talking about the major levels that the markets have reacted to in the past and will react in the future, so, if we kind of go over here let’s say that we’re over here in the past okay, so the 11th four of May 2017 I’ve seen that this high has been posted there I could, then put in a level okay and say well the next time the market comes to that level, I’m going to do something alright and, then I could from a support perspective I could put this level here I’ve got a more recent level in over here which we can look at later and basically you’re just putting those major levels that the markets have reacted to in the past and you think they’ll react to again now once you have these levels in on your chart okay it’s all about understanding what to do to do with them now let me go back into their daily chart here for a second what I want you to notice all right is that when the markets come to these levels and I know that you may be thinking I’m teaching you to suck eggs now you know what supporting resistance is and I appreciate that, but what I want you to think about is what should be happening at these levels okay, so support and resistance levels are levels where the market participants are the big players okay have taken a stand, so, if we look at this resistance level the market had been rallying all the from 108 to four all right which is the beginning of this move all the way to one one four to nine and this is the level that the sellers got involved at okay and they said the market is not going any further, so we’re going to sell it down below now we’re going to sell it back down the next time the market comes up to that level we need to try and get into the heads of these big players all right and what I mean by that is we need to start to think like them, so how do we do that well let’s say that we’ve got this was this on the lump of July 2017, so now let’s go down to a shorter term timeframe let’s say the 4-hour chart let’s try to get to the 11th of July okay, so go in here 2017 July okay oops that’s much eliezer 2007 sorry known around that let’s go to this time right, so this is the in fact let’s try and do it on the one-hour chart, if we can get back there nice, if we can go back that far does that be much much better, if we do that okay, so the idea is to be trading big levels okay, so some from something like the daily chart on a shorter term timeframe, so something like the one-hour chart or, if you’re a day trader you can even go to like a 5-minute chart and what we’re looking to do here okay is we’re looking to say okay the market has come up to this resistance level which is the last place that the sellers got involved in the market this is the last place that when the market rallied the sellers said that it’s going to go down okay now when it comes to this level one of two things should happen either the sellers get involved again and they sell the markets down okay or the sellers say no we’re not going to do this okay or maybe they try a couple of them we’ll try and I put their stops above the level which is logical, but actually the buyers winner, then we get a rally on up above the level okay, so what we’re looking to do is we’re really looking to kind of monitor the price action at this level here okay we need to see what happens at this level, so we’re looking for many support and resistance levels to appear at the major level, if that makes any sense, so we know that we’re looking for a reaction to one one four to nine now what we need to do is see what that reaction is, so we we don’t just sell, because the market gets up there we wait to see that what the market does and what we say to ourselves all right and this is key this is the key point here what we say to ourselves is that, if the market trades below this level here being this major level there, if the market trades below there we need to be sellers we need to be selling the market below this level, if the market trades above there we need to be buyers now we don’t just sell them by willy-nilly we wait for support, so as I said many supports and resistance levels to present themselves, so in this case here when the market came up to this level sold off a little bit, then it rally to gave us a mini support level, so what we could say is it in at this level here that’s where we want to sell below okay, so the markets already tried to get below there hasn’t done it, if it does get below there and it you know it trades or it closes below that, then we want to be a seller by the same token the markets come up here and it started to post a bit of a high it didn’t really quite do that all right, so it’s tried to get above there and, then it’s traded back below this level and it’s closed below this level okay, so what the market is telling us is at worst it tried to get above this level, if there were really buyers involved in the markets they would be able to consume all of these sell orders above here and push the market up in that direction okay push the market up here, but it didn’t manage to do that it closed back beneath the level and, then we said that, if the market breaks beneath this level, then we want to be a seller, so when the market closes beneath this level here okay this level here we want to be a seller, so we sell below there we have our stop above the high over here okay, so the stop above this high and, then you can either trade to the next support level, so maybe trade down to here which will give you much more than our than a one to one risk reward you’re more like a two to one this reward or you can kind of trail your stop or something like that all right, but that’s kind of the the basic concept all right that’s the general concept that we’re looking at and this stuff works over and over and over again, so, if we go to the next time the market gets down to support or resistance level, so we can see that it chose down from the support level here down to from that resistance level down to this support level all right let’s zoom in a little bit closer and again what happens, so the market gets down to this level and what do we say we say, if the market trades beneath resistance all right gives us a set up beneath this level, then we want to sell the market, if it gives us a set up above this level, then we want to buy it okay and again what do we do, so we get a little pen here and we say well we need to look for support and resistance levels in and around the major level this is a major level here is a resistance level, so, I’m going to say that, if the market okay can get above this level here I want to be a buyer no price action took place down below here, so I didn’t have anywhere to say that I want to be a seller, so the price action took place all above this level which is a clue that actually in the long run the market wants to go higher all right that the buyers are in control and, then what do you do you get involved when the market breaks that level, so you get involved at around this point here okay you have your stop below that point there and, then you can look for the next resistance level which could be this guy over here which will give you kind of like about a 1 to 1 risk reward or you could trail your stop again the targets aren’t important the the entry method that you use isn’t necessarily important that’s down to you that’s personal taste, but the important thing to remember here is that when you’re trading it resists the key support and resistance levels which is what you should be doing you should be doing it with a view to saying that you know you want to be long above a level or short below a level and what that will ultimately do is that will eliminate the unnecessarily losses that you take, so, because, if you imagine that you’re one of these that you sort of like not a retail trader that loses money all the time what they do is they like, I’m going to buy sell buy sell buy sell they don’t have any real plan whereas, if you say to yourself again and this is really what I want you to get from this video, if I’m above this level, so what this resistance level here alright it’s a key level, if I’m above this level I want to be a buyer alright, so, I’m going to look for only buy setups only buy setups above this key level all right, so really I’m looking for some sort of a move above there, then, I’m going to be a buyer below this level I’m only going to look for sell setup, so I could say well let’s put that level in this we’ve got a little support level in there, so I’m looking for sell setups I don’t get the buy setup in this instance I get the market closed beneath this level, so that’s the sell set I can, then sell the markets here okay and again I could look for the next whoops get rid of that there I could look for the next support or resistance level okay, so I could say that this here is a support level that I want to trade to that will give me about a 1 to 1 risk reward or I could go down for this support level there which will give me like a a 3 to 1 risk reward or something you know ridiculous like that, if I trade it down to this resistance level over there, but the point is is that these patterns play out again and again and again in the markets it’s such a simple concept alright, but it’s a concept there he’s going to make you money in the long run it’s going to up your strike rate it’s going to increase your probabilities of trade success okay, so I hope you enjoyed this quick tip video again as I said a sorry about being away for a long long long time hopefully you know things will be back to normal and I’ll be able to post many more of these videos here, but for now have a fantastic day really take onboard this trading tip watch the video again, if you need to, because I promise you in the long run is going to help you it’s going to be something that’s going to increase your probabilities of success with your trading, so thanks, so much for watching and have a fantastic Wednesday take care now.

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