Forex 101 - How To Read Market Structure

all right welcome welcome i just want to make sure that the audio is correct that you guys can hear me perfectly fine nothing's wrong audio is correct awesome perfect i'm just going to make sure that the visuals are also okay there's a bit of an echo yeah there's gonna be a little bit of an echo because i'm in my office that's why the echo is normal okay so let's take a look here okay it's not bad not bad the video is actually not bad at all how long are you planning on making this um it's probably going to go for another hour or something like that [Music] all right welcome everyone i guess we're gonna start here soon just give me a moment here all right beautiful so um i'm just gonna wait we're gonna wait about five minutes for some people to show up and then we're gonna continue on so basically what we're gonna do today is we're gonna go over a few topics right the first topic is going to be market sessions it's going to be the first topic marketing sessions oh obviously this webinar is brought to you by and please right here dominion markets this is right over there something new we're starting now markets perfect these are the sponsors here for today so we're gonna go over market sessions um then we're gonna go over candles then we're going to go over reading rea reading trend then we're going to go over reading trending candles reading turning candles um after that we're gonna look at um [Music] ranges and then we're going to go into like you know your take profits and stop losses and all that fun stuff so okay okay it's pretty good awesome of course we have guys here giving their opinions that's fine okay so we're gonna wait about five minutes and then we're gonna continue on with this webinar and see how far we go well most of the webinar is a virtual class um someone is saying someone is saying get a bigger board um how about you send me one awesome so yeah it's about 804 right now at 8 10. we're going to continue on i think i think these are the basic topics that people don't realize i think i think the number one important thing that people don't realize is market session because if you don't know which session you're trading or which session to look at you're never going to find enough volume to place trades right it's going to get very very difficult at the same time people don't know how to read candles reading trends i mean identifying whether it's going to be a trending market or when there's going to be a ranging market i think that's also very important so okay also if you got around 900 people in here um let's wait about four more minutes and then i'm gonna be back here so we're gonna wait four minutes all right wonderful um let's let's do this here so what i'm going to do is i'm going to put my phone on silent i'm gonna put my phone on silent over here hopefully i don't break anything okay there we go phone is turned to silent awesome much clearer over here and maybe move this laptop down over here awesome perfect things are much better now um is this a christmas gift that you're talking about in your regular trading session uh probably yeah yeah let's uh let's talk about this christmas gift here okay okay let me just get my coffee here first thing in the morning you know 8 a.m okay awesome perfect so what we talked about before we we're just going to remove that you know later on but um awesome welcome everyone welcome to the first session of your virtual class over here i know 2021 is going to start soon and before 2021 starts i think it's really important that we kind of like you know brush up on some topics here so the first thing the first thing that we're going to talk about today is going to be market sessions which sessions to basically look at where there's going to be a lot of volume right and then slowly we're going to move into candles and and reading candles and trending and candles with no wigs and all that fun stuff so let's start here market sessions so we all know there are three market sessions number one we have your asian session right number two you have your london session number three we have everyone's favorite new york session right so i think the number one thing we need to understand is that okay if we have the asian session when is this going to be volume in the asian session right what time this is going to be because whenever there's going to be volume in the agent session that's the time when you should be trading so if you look at the asian section what i've seen personally is that there's going to be some sort of volume from let's say 6 p.m eastern

all the way to 9 00 p.m eastern right these are eastern standard time so you can basically go to google and try to convert this time to your local time and whatever that time is right so this is the time when there's going to be volume in the asian session and if you trade the asian session you might notice that after 9 00 pm or after 9 30 p.m price mainly starts to like you know range um the volume starts to die down they're not bigger moves at all same thing when when you look at the london session we have to understand is that in london session we have two parts right the first part you have volume around 1 am eastern sorry about my handwriting here and it goes all the way towards like you know around 2 30 a.m right 2 30 a.m so this is pre-london from 1 am eastern to 2 30 a.m eastern this is pre london pre-london is when like you know when the orders start to come in when the market is about to open so there's some sort of volume in the session to see okay what others came in before that after that you have your actual london open which is at 3 am and it goes all the way towards you know 4 30 a.m eastern right next

we have the new york session new york session is a very high volume session right it's really volatile and the way we're going to look at it is there's going to be pre-new york which is my favorite obviously it starts at 6 00 a.m eastern this goes all the way to i would say like new york open so i'm going to say it like around 7 30 a.m eastern right so all time frames all times are basically an eastern standard time right so this is pre-new york pre-new york after free new york you have new york open which is 8 00 a.m and after new york open you have the nyse open right most people confuse nyse with nyc nyc is new york city right nyse is new york stock exchange so these are two big differences right so then you have 9 30 a.m eastern this is the nyse open you know stock has changed this is where there's volume in the market and we're going to talk about volume here in a little bit after this you have london closed living closed volume usually starts from like 8 00 a.m uh 10 10 am sorry and and it goes to like i would say 11 a.m eastern right

so over here what we have is we have one two three four five six seven we have seven volume times right what this means is that these are the times when there's a lot of volume in the market right so so now what you have to identify you have to identify that okay which time will suit you best within in your life right let's say let's say you have somebody who works in the morning time so for someone who works in the morning maybe this time will suit them best in the evening time you know if someone works in the evening time maybe the morning time suits them best you know so that's something you have to like identify that okay what times are you going to be able to look at the charts because here's the thing right we have guys looking at charts at the asian session there's some volume at that time you know what's going to happen is that they'll they won't stop at 9 pm they'll continue to look at the asian session at 10 pm and 11 pm when the volume is dying it makes no sense it makes no sense to look at the market when there's no volume in the market right same thing goes towards your london session for london you have three london from 1 a.m to 2 30 a.m there's a lot of volume at that time right after that you have london open from 3 a.m to 4 30 am there's also a lot of volume at that time and the best way to measure volume is if you look back to your charts what you're going to see is you will see big candles right so when you see big canvas at those times that means there's a lot of volume at that time right at the same time when when when we look at the new york session we see that this volume at 6 a.m to 7 30 a.m now sometimes it's not always that there will be volume here right sometimes so what's gonna happen is sometimes when when you're gonna come towards the new york open uh sorry the tree new york what you might find is that there's consolidation right so when you see consolidation during this time you know that okay even if price is consolidating at this time these are the times normally we do live streams right so not even prices consolidating at this time we know that okay if we're arranging the next time of volume is going to be at 8 00 am eastern right so we wait we wait for that volume to come in you know normally when price is ranging we're waiting for a breakout and when we look at the time we're like okay next time there's going to be a breakout it's probably going to be at 8 a.m eastern right if there's no breakout at 8 a.m

eastern the next time you're falling is going to be at 9 30 a.m eastern right so you're waiting at the same time for the london session if you're at pre london from 1 a.m to 2 30 a.m eastern which is like around 7

a.m no um 6 a.m london time till 7 30 a.m london time you know prices ranging during this time you know that the next time a volume is going to be 3 a.m to 4 30 a.m eastern you know so it makes no sense for people to try to like you know trade when there's no volume in the market and prices are ranging so you have to identify that okay these are the times when there's going to be volume in the market you have to wait for volume to kick in because you can't get in a drawdown if you're not trading based on volume right so this is really important market sessions you have asian session london session you have pre-london london open you have new york session pre-new york new york open new york stock exchange london closed really really high volume times here right so market sessions really really important right you have to identify what time is going to suit you best and based on that time you'll be able to trade further on so i'm pretty sure there are no questions at this time let's take a look over here probably all right perfect so what we're going to do is next we're going to talk about candles right uh now for a lot of people this is going to be a very very basic stuff over here but i think at the same time we can also have some sort of a refresher area too right i think we have around 1400 people in so it's gonna be pretty interesting okay candles man candles are gonna change your life here in trading trust me man my handwriting is not that good okay perfect so what's the basic definition of candles right first thing you need to identify is that what does a candle mean in the market whenever you have a candle forming in the market this candle represents billions and billions of dollars being moved in the market so our job as a trader is to identify where a candle is going to move right if the can is going to move up or is it going to move down because if it's going to start to move up we have the opportunity to have buy positions and make some sort of a dollars in that market right so when we look at the candle the candle consists of let's say we have a body let's say this is a bullish candle right over here right next we have a bearish candle which kind of looks like this as well right so the bearish candle bullish candles they look the same generic sizes like this i'm i know candles can be like this big someone is saying like okay doji candle morning star whatever right so there are different types and there are ways to read these candles as well and that's what we're going to talk about here later on but first we need to identify what these candles mean because i know there's a lot of new people here too so we're gonna talk about this here first so this is a bullish candle right bullish bullish candle which means that whenever you have a bullish candle it means price is moving up right when price is moving up you have to identify that okay price is opening at the bottom and price is closing at the top right so it's open at the bottom close at the top these are the wicks wicks basically mean that price tried to go down and it made a low over here and it couldn't go beyond that point right and then again price tried to go higher than this point and it made a high over here and it couldn't go beyond that point so when people ask me hey man like you know when you're looking at the candle what's the high and what's the low this is the low of the candle right over here and this is the high of the camera right over here right this is these are not the highs this is the body high this is the body low so this is the candle though and this is a candle high now before we talk about how these candles are formed no actually let me let me go back in time in 1990s and let me explain to you how these candles were formed before right so 1990s i was actually talking to a friend of mine um around like a year ago and he was talking about how he started trading actually you know what let me just move this camera here a little bit all right let's move it here back here yeah can you teach us about muscle building instead of forex yeah man just gotta eat a lot of protein a muscle's gonna come in okay so i was talking to a buddy of mine and um we were talking about how he started trading in 1990s so basically what would happen was that they used to get these tapes of prices right didn't get these types of prices and what that means is that that what they would do is let's say that you came to the market at 2pm if you came to the market at 2pm so what you're gonna see is let's say you're gonna have you're you're gonna get a price on usd jpy and that price is going to be 100.50 at 2 pm so what you're going to do is you will have this graph paper and on that graph paper what you're going to do is you will mark a line at 100 50. so when you have a mark lined up at 2 pm right so now you're going to monitor price from 2 pm all the way to 3 pm so you're monitoring price right what you're wondering is that okay what are the fluctuations so if price started at 100.50 at 2 pm

let's say for example um from here price moved down and it came down to 90.50 within from 2pm to 3pm and as we reached 3pm price actually was at let's say 120.50 and during this time it made a high at 1 30 50. so this is how they would create the candle right they would see that from 2pm to 3pm what was the lowest price we got lowest price we got was 90.50 right you're like okay perfect so that's maybe the low of the candle and what was the highest price we got the highest price they got was 130.50 so what does this mean this means that within this hour right price made a high at 130.50 and

price made a low at 90.50 so this is what you had this is a candle right this is how they were drawing candles back in the day right so you can just imagine like how long what what kind of a tedious process it would have been to draw candles right but now man listen like we have computers we have charts candles are printed for us we don't have to wait anymore and man like people back in the day they were really good traders because they had to wait for candles to form right they literally had to wait and draw candles man can you imagine can you imagine the gulag doing that here no probably not right okay so back to candles so this here you have a bearish candle right over here obviously you know anyone knows this a bearish candle it opens at this point obviously it closes at this point there's candle high it's right over here bearish candle low is right over here so since we have bearish and bullish canvas forms we're also going to talk about trends actually let me just move this here closer here right over here so now because right now we're going to talk about how to read candles in trends right because everyone knows about candlesticks bullish candles bearish candles the trick is how to identify when candles are moving up and how to identify when candles are moving down and this is really really important i hope everyone is making notes uh well this is being recorded anyway so you can probably go back to this video and take a look at this okay candle trends we're going to talk about candle trends so what do you know about trends the basic definition actually before i go into the basic definition okay so this is the basic definition of trend the trend is something like you've seen it people draw trends on their instagram pages and youtube charts and this and that perfect right a trend is something like this that goes up comes down goes up comes down goes up right this is the basic definition of a trend where price is making a high then we make a lower high then we make a high high a lower high high high lord i know some people are drawing this at the same time which is pretty good but it's pretty simple there too right so this is a basic definition of a trend now what does this trend mean based on candles right so before we talk about candles in this trend let's also talk about time frames right um so actually like you know what we're going to talk about time frames in a little bit so let's talk about candles here first so whenever you see a trend like this you have to kind of like map it out like okay what would this look like based on candles and let me just bring this a little bit closer here to see um let's see here all right perfect okay so so whenever you're drawing candles a candle is going to look like this right so let's say we have a support down over here and you have a candle forming just like this right now let's say this is a one hour time frame now when we talk about time frames you have to understand that as we go up on the time frames the time frames start to get um stronger and stronger right so let's say you have the four hour time frame four hour time frame is going to be stronger than your one hour time frame one hour time frame is going to be stronger than your 30 minute time frame 30 minute time frame has been stronger than your 15 minute time now what does this mean when we talk about support and resistances right so let's say this candle is on the one hour support if this candle is on a one hour support this means that this is the strong support if this was a 15 minute support then you could say hey like in what this is a 15 minute support so this is a weak support right so let's say for um in terms of explanation if this is a one hour support and we're thinking that okay the trend is bullish and prices should go bullish in canada terms what this would mean is that the next candle should have a higher probability to continue up right what this also means is now let's say if we look at this candle over here this kind of obviously closed that support right and if you look at the next candle next candle for it to continue going up it has to respect the low of the previous candle makes sense like once this candle is forming you don't want this candle to break the low of the previous candle just like right over here when we have trend moving up and when it's retracing you don't want this retracement to break the law of the previous low let's say for example if we have um some sort of a retracement right over here right so let's remove this and what we're going to do is we're going to do a little bit of a retracement on this trend for explanation purposes so let's say price made a support right over here it's not straight let's say price made a support right over here um price moved up now when price is retracing you don't want this retracement to break the low of the previous low just like you have the candles right over here if you think candles are moving bullish you don't want the candle to break below the previous candle you want it to break the high and then make a new high right over here same thing right over here right price came up made a low came up made a high high came down made a lower high and now you want this to continue up to make another heart high and that's where you have to trend you know which is why when when we're looking at candles you're anticipating if you have a bullish candle forming at support you're anticipating the next candle to respect the law of the previous candle and continue moving bullish right this is a really basic definition of a trend you know based on just candles we've we've tried this in live streams we've tried these in simulations and all this work well i'm not going to say all this work but they work like around 80 of the time right because there's always a probability in the same way when we're looking at let's say um resistances right so this was an example of a bullish trend and what we're going to do is we're going to take a look at the bearish information right over here now let me see what the gulag is up to over here they like my little children now is this raja yes all right perfect so now let's say we have resistance up over here right we have resistance up over here and okay let's remove this coloring over here let's say we have resistance up over here and you have candles that are moving bullish at this point on this resistance right and you have the next cannon that kind of like breaks up but closes right over here what most people are going to do is they'll try to take a sell over here right and the reason they'll take a sale over here is because they think price is going to reject this area right what we think price is going to reject it but what we see is that price is still approaching this area right so the problem with taking a cell at resistance is when when you take a cell and you're placing a stop loss up over here you're taking a cell when the candle is bullish it makes no sense at all i mean it makes no sense to take a cell when candles are bullish right you have to wait for a candle to turn in bearish right so when you're taking a cell at this point we don't know whether the next candle is going to continue to go up and break this high and then come down or what it's going to do we don't know that so we have to wait for kenneth to close bearish so let's say for explanational purposes um we have a candle that's actually closing bearish at this point right over here right and let's say for example that this bearish close is in a downtrend like this so when you have a downtrend it it does the same things as the bullish trend right away right so price going to make a low right it's going to make a lower low it's going to retrace it's going to make a lower high it's going to come down it's going to make another lower low it's going to break slow over here it's going to retrace now when it's retracing it's not looking to break above this high right over here right so it's going to continue down and make another lower low and this is going to be a um it's going to be a lower high right away and so on and so forth right so when you're looking at the candles and you're anticipating that this is the one hour candle closed if this is a one hour candle close this is a strong resistance right over here which means that if a candle is closing at a one hour zone it has a higher probability to continue in that direction if this candle is closing in a 15 minute rejection zone then what happens to the probability tell me guys what happens to the probability when candle is closing at 15 minute zone that's right the probability becomes weaker right so when you have a camera closing below the zone on 15 minute there's a less probability that the next candle is going to go gonna go down why because 15 minutes are weak confirmation time frames right if this is on the 30 minute time frame it's still pretty strong one hour time frame really good four hour time frame amazing right so let's say you have a candle forming over here and you're anticipating price to go bearish now when we're looking at this trend right over here we're anticipating the next candle to maybe retrace but respect the previous high and then continue down to break the slow and then continue down and make a bearish candle right some people would say okay you know what this is an impulse entry and this and that so that's we're going to talk about next year or probably you know when we have time but right now we're just going to discuss some simple concepts right so you have a candle forming bearish and you're like okay like you know what for a candle to go bearish it needs to respect the previous high if it's going to make a lower high and a lower low at this point right this is the basic basic definition of trends that whenever you have one okay yeah so these opportunities are going to happen only when you have volume in the market right so when you talk about volume in the market you have to go back to your notes to see that okay what times there's gonna be volume in the market because whenever there's gonna be volume in the market you're gonna get big candle formations right let's say this is the um 8am eastern new york open so this is the point where you're gonna probably get a bigger candle forming right whenever you see bigger candles form in the charts those candles are the candles you should be taking trades on because those are volume candles and whenever there's volume in the market you have higher probability to make some money in the market right because that's what we're here for to make money in the markets so you need high volume candles to make money in the market over here so these were basically trends right i'm sure this is clean simple um whenever you see like you know a one-hour candle closing at a support understand this that you need candles to be you need candles to basically like close in your direction for them to have a probability to continue moving on right so next what we're going to talk about are candles with no top wicks and no bottom waves right and candles with wicks and stuff like that that's what we're going to talk about right now before we do that i have to kind of like stretch my arm because my arm is getting tired a little bit marker is pretty heavy this is heavy knowledge over here i'm holding i'm holding heavy knowledge okay so let's say that we have a bullish candle and it's closing like this and it has no bottom wick right so what does a bullish candle mean a bullish candle means that price is moving up when you have a candle closing with no wick at the bottom this basically means that there's no range for the next candle to go down right when when there's no range for next time to go down this means that when this bullish candle was formed it couldn't even make a tiny bit of a bearish wick to go down so what does this mean based on volume where is volume mostly pushing price here in this scenario right over here up right perfect gulag is smart right up so when you have bullish candle closing with a wig at the bottom there's a higher probability that the next candle is going to continue moving bullish right as long as the candle is low respects the low of the previous candle these are um these are your conditions for buying trades right so so all the candles candle formations that we're going to talk about here are going to be based on the one hour time frame because one hour time frame is a strong confirmation time frame and it makes sense to trade on the one-hour time frame 30-minute time frame you know but as you go lower time frames on the 15 minute or five minute that's when like you know your um probability it starts to get smaller and smaller right so perfect you want the scan to respect the low of the previous candle for it to continue moving up but what if you have a bullish candle that's closing with no wick on the top you know when you have a kind of closing with no wig on the top this basically means that there's no range for the next candidate to go whenever you have wicks on the candles wicks are basically bread crumbs left by the candle for the next candle to continue in right when you have no wick at the top this means there's no range like like price came up and it just stopped it didn't even make a wick at the top so when there's no range what i've seen from my perspective in my experience is that whenever you have a bullish candle closing with no wick there's a 50 50 chance that the next candle will either go up or it's going to go down right which means now even if you look back in the charts in the history what you're going to find is that when you have canvas closing with a wick on the top it's mostly like you know um the next candle kind of like forms like this next candle is a bearish candle it doesn't go up and you're just confused right oh man but i thought the candle flows bullish it should have gone up why is it coming down because hey listen man there's no there's no wicket in the top of this candle which is why it's coming down because there's no range right so when you have this bearish candle forming like this now price is consolidating so we're going to talk about consolidation here in a little bit too right so this is bullish candles with no width on the top right there's no range at the same time let's say you have a bearish candle and a bearish candle closes like this with the wick at the bottom and no become the top what does this mean does the bearish candle have any bullish volume absolutely not you know there was only bearish volume in the bearish candle and bearish candles mean price is moving down so when this candle is leaving a wick over here this means that the next candle has the opportunity to fill this wick you know probably form something like this fill the wick break the low and form your bearish candle right over here but but again it has a condition to fulfill right if you want this one-hour candle to continue down the only condition it has to fulfill is that it has to respect the high of the previous candle and this is where your stop losses go right your stop-losses go above the previous candles your stop losses don't go above like um above you know let's say a random 40 pistol or a random 30 pip stop you know it goes above the candles right over here because if you're trading this on a one arc time frame you're placing the stops above the bearish candles for sales or you're placing your stops below the bullish candles for buys right that's the condition for a trade because let's say if this candle right let's see if this candle starts to come down right it starts to come down and starts to break the low of the bullish candle your stop loss is going to take you up right your stop loss is going to say hey man listen this is not the trade for you to be in because now there's a high probability for price to continue down and if there's high probability for a price to continue down you should be out of this trade because it makes no sense to stay in the trade when price is coming down right so that's where your conditions are placed that's where your stock losses are placed like you know some people what they do is their price will come down to a stop loss what they'll do they'll make a rookie mistake man they'll make these dumbass mistakes and what they're going to do is they will remove their stop loss and they'll just extend the stop-loss by 20 more pips right now if you're extending a stop loss by 20 more pips and you have a bearish kind of closing like this where do you think price is going to go now you think price is going to go up or it's going to go down when you have a one hour candle closing bearish below this candle it's going to go down you know obviously it's going to go down now there's a higher probability for the next handle to go down and now take out your bigger stop loss at 20 30 pips wherever you placed it so it's really important to have stops below the bullish candles i'm going to say it again it's important to have stops below the bullish candles on the one hour time frame safe stop losses that's better to have um stops above the bearish candles for cells in one hour time frames right you're going to be much safer in this respect which is very important perfect so we went over micro sessions we went over trends we went over some candles with no wigs at the bottom which at the top think now is the time to talk about consolidation because a lot of people get stuck in consolidation let me see what's the time over here um okay not too bad 37 minutes pretty good pretty good okay so consolidation right over here how do you identify consolidation right so we're going to talk about that how do we actually identify consolidation because a lot of times you know like people ask me this question hey man so i was training and i was stuck in consolidation and i don't know what was going on so so we're going to talk about how to identify consolidation right so let's say we have a support right we have a support right over here and we have a candle that's closing bullish at support when we have a candle closing bulletin support we know that okay there's a high probability for the next candle to continue moving up if there's a high probability for the next candle to continue moving up probably that next candle may look so let's say someone takes a bye at this point right so you're taking a bite at this point and you're anticipating the next candle to move up next kind of moves up breaks this high over here and goes up and you're like okay perfect like you know what price is moving up at this point now when price is moving up let's say you're still in the buy position here and you're saying okay like you know price gonna continue moving up and we're gonna have a great day so what you do is you move your stop loss from the bottom to right over here because now you wanna trail your stop-loss right because if this is the one-hour time frame you want the next candle to respect the slow and continue moving bullish but what happens is that the next candle basically forms bearish right over here so when you have a bearish candle forming like this right what you have is one candle forming bearish and next kind of forming bullets so these are two candles forming side by side so whenever you have two candles forming side by side there's a probability that price may start ranging right ranging happens like this so let's say you have these two ranges here you have a resistance you have support so this is ranging also known as consolidation where price just starts bouncing in a smaller range right so so whenever you have a candle forming bearish like this not only you have a resistance formed now but also you have some sort of a rejection form right over here right now you have candidates closing side by side so these are basically ranging at this point so then what's going to happen is that you might see a bullish candle form like this but respecting this resistance and now we're basically ranging right there's no bias at this point right because price ranges the only buys you might see is that if the next candle starts breaking the high over here and then you can see okay next 10 10 start to continue moving up but if the next candle is not breaking the high man price is not going anywhere because that's basically resistance right right over there so you can have a can to form like this and next one can basically come down over here and now we're basically arranging at this point right so the best way to identify a range is whenever you have two candles printing side by side when you have two candles printing side by side then you have probability that price may start ranging and also at the same time really important you have to check out your time too right you have to check out the time so let me just draw a clock over here so this clock we're going to identify that this is the time right you have to check your time that is this the time when there should be volume in the market right it's very important let's say that this move up let me get a better marker over here um okay so let's say this move up was at 6 30 a.m eastern which was pre-new york right you had volume price moved up yadda yadda perfect and then price started to range over here right this price started to range over here and if you look at the time and you saw that the time was 8 00 am which is new york open and price is ranging you know that okay if price is ranging at 8 am probably there's going to be volume at nysc open the new york stock exchange open right so now you have to wait for price to either break above these highs or you have to wait till nyse to see that if a candle can break up or if a candle can break down right that's very important you have to wait for time when there's going to be volume in the market actually like you know what um in the chat can people write w if this is really like you know if this is going as planned here let's write w over here awesome perfect oh beautiful we got three of these four five six wwe awesome perfect right so you have to identify when there's going to be range in the market when candles are printing side by side that's a very very high probability that price is going to start ranging at that point so we got this let me see what's what else was here on the agenda here um okay beautiful so we did so we talked about market sessions we talked about candle trends we talked about candles with no wicks at the top and wicks at the bottom next what we're going to talk about is something really important right that's this something that we're going to talk about is going to be on wick fills really really important concept really important subject here too so we're going to talk about rick fils right now what is the wick film when i started trading um we're basically also so basically okay so i'm going to give this a little um little story what happened when i started training so when i started trading we were trading based on the four hour time frames right we're trading on the four-hour time zones we were looking at four pairs actually we were looking at five pairs oh actually you know what let's just not talk about this right now and let me talk about something really really important here first and that's something that we're going to talk about here is now obviously we talked about market sessions so i'm going to mark that as market sessions we talked about market sessions we talked about the asian session we're going to donate denote this with a right we talked about the asian session we talked about the london session and we talked about the new york session right so these are the three sessions you have so now what we have to identify so we also identified what time this is going to be volumination session we talked about what time is going to be volume in london session we talked about what time there's going to volume in the new york station now what we're going to talk about is that what currency pairs are going to be active in these sessions this is really really important most people don't know which currency pairs to trade you know because we have people talking about you know pairs that are closed in new york session in london or asian so that's what we're going to talk about so i want to know with your help what currencies are open in the asian session we got answers coming in jpy okay perfect we have jpy is open in asia we have aud open in asia we have nzb opening asian chinese korean currencies okay perfect right these are the currencies that are open in this session right this means that at asian time you have the japanese banks open you have australian banks open your museum bags open so these are the main banks that are open in the asian session so we're only going to concentrate on these currencies right over here now let's talk about the london session right what's the first thing that comes to your mind when you think about the london station perfect we got the pound gbp is open at this time we have um euro open at this time we have c h f open at this time we are russian russian ruble okay we have russian rural open at this time too right but but like majority of the time we have pound euro and swiss franc open at this time right these are the only currencies major currencies that are operating at this time next we have the new york session right new york session is the most volatile session of the market right so when we talk about in your session we talk about we have cad open at this time we have usb open at this time we had we have xau gold moving at the same now gold can also move in the asian session too right because you have fluctuations in the yen gold can also move in the london session because there's volume in the london market gold gold is like universal a little bit right so in new york we have cad open usd open we have um gbp open at this time we have euro also open in the new york and you know like swiss franc and all that fun stuff so these are currencies open in new york session london session asian session now your next step if you're going to trade the asian session you have to identify what currency are going to trade in the asian session are you only going to trade the yen are you only going to trade australian dollar or are you only going to trade new zealand cad right so the best way to identify is that okay now another thing you have to identify you know what i'm going to do i'm going to get a bigger board because now i realize i need more space so whoever said about getting a bigger board i think you were right but we all learned like that right okay anyway so now what we got to talk about is that okay which currency is going to be best to trade in the asian session right so first of all you need to identify is that you only need to trade a pair that is influenced by one currency right if you look at jpy and if we say that okay in the asian session euro jpy right if you look at your jpy in the asian session we can see that in the asian session your jpy is only influenced by the yen right so whenever there's a change in the yen that's going to move your jpy same thing goes with um usb jpy same thing goes with gbp jpy right this is the reason when you look at these jpy players in the asian session you're going to realize that most of the time these three pairs are going to move in the same direction and the reason why is because these three pairs are being influenced by yen right over here right but if we look at let's say page like um let's say we look at aud jpy now the problem is that aud jpy is influenced by not only the yen but it's also being influenced by the australian dollar right so now you have two currencies affecting one currency pair so it's going to be really hard to identify where price is going to move because if you really want aud jpy to move in a certain direction you want one currency to be really really strong and you want one currency to be really really weak and that's the only reason this pair is going to move but if you have only a pair that is influenced by let's say one currency let's say you have gbp jpy then you only need the yen to move right because if you if you can only get the yen to move that's going to move the overall pair right same thing when we talk about london session here in london session what you're going to notice is that the pound um let's see here right what you're going to notice is that gbp jpy and gbp usd they will normally move in the same direction in the london session and the reason why is that in this pair yen is closed and this pair usb is closed so the only currency moving this pair is the pound right and it makes much more sense to trade pound yen and pound usd in a session which is only influenced by one currency pair right consider it like this right let's say you're talking to somebody and you need to make plans with a person to go out or whatever you want to do right and now you have another friend and you're telling him to go out and he's like oh you know what let me talk to my wife and let me talk to my mom and let me talk to my dad so now he has these three variables he needs to get them on his side for him to go out with you right but when you have a person who's just independent he's like oh you want to go out all right let's go let's hit the bars right so that's what's happening right over here you have one currency influencing the whole pair if we talk about let's say um eurogbp right if we write euro gbp now there's a problem right and the problem is that now you have this currency pair and it's being influenced by the euro and the pound so if you want this to move you either want the euro to be strong and pound to be really weak or vice versa so when you're looking at a currency pair that is influenced by two currencies it's going to get a little difficult for them to trade because let's say if both currencies are bullish right let's say euro is up and pounds up what do you think is going to happen to price action will there be a trend will there be a trend no exactly there's going to be no trend at that time because both pairs are strong if both players are strong it's basically like a tug of war where where no one knows where to go right at the same time when we look at the new york session this is when things get a little tricky right in the new york session personally me i like to focus on gbp jpy and the reason why is because pound is volatile as it is and the yen is closed at that time so i know that for my pair to move i only need pound to either be strong or i need pound to be weak and then i'm gonna know that okay this pair can move but if i'm looking at let's say gbp usd in this scenario man i want pound to be strong or dollar to be weak or i want pound to be weakened all to be strong so now i have to look at more variables right so now there's more thinking involved at this point so which is why sometimes in new york session what you might find is that the pound yen and pound dollar they may not move the same way because they're being affected by these scenarios the the only reason pound yen and pound dollar are going to move the same way in the new york session is if the pound is really strong and the us dollar is not moving at all right so whenever you're looking at session first of all you have to identify what time in the session is going to suit you best right the second thing you need to identify is that what pair are you going to choose in these sessions this is really really important right if you're choosing let's say usb cad same thing you want one pair to be really strong or one pair to be really really weak if you're trading usd jpy let's say you're looking at um usb jpy in this instance it's still pretty good but you know your cpui has lower volume it still moves so in this way as well you will need just one currency to be either strong or to be either weak right so when you look at things in this perspective you have higher chances of winning you have higher chances to grab like no volume in the market to participate in the market because now you're only expecting one currency to move rather than two currencies to move this is why also the reason is that i hate euro usd because man i well one thing is i've never won a trade on your usd and thinking the second thing is when i look at your usd in the new york session you know that it's being influenced by the euro and it's also being influenced by the us dollar you know so it becomes a mess here to trade your usd at this point how's the gulag going pretty good all right perfect well almost like an hour in so we talked about market sessions we talked about currency pairs we talked about bullish candles bearish candles next we're going to talk about my favorite setup to trade right this is a really really good setup and we're going to talk about and and we're going to try to go in detail of this setup so that like you know we all can leave here and learn something from it and probably practice it in the coming weeks here yeah it's going to take a little time to rub this off you know what i'm going to do i'm going to wait for boxing day and then i'm going to get one of those um electrical boards yeah i saw them they're pretty sick probably it's going to be a write-off too for my business okay perfect so now now we're going to talk about my favorite self actually let me see how much battery i have left over here we have oh i got 82 left hey raja if we do technical analysis and there's no upcoming news events also then oh your question by the way okay so we're going to talk about my favorite analysis over here and before we do that i'm just going to take some coffee okay perfect so the setup that i really love to trade that i'd really like to see in the market is basically in a trend right if you haven't made notes this is the this is the note you have to make right so when you're looking at a chart the first step towards looking at the setup i love to trade i've had an 80 winning probability on this setup i've made most of my money trading this one setup and we're going to talk about that so first of all what you got to do is you have to zoom in onto the chart and then look at the market right so my favorite setup is basically it's a wick fill right so we're going to talk about vic fields on the high time frames and then we're going to go into the small time frame then kind of see like you know how candles are formed in that instance so let's say that we have a bullish candle like this on the four hour time frame we have a bullish candle like this on the four hour time frame right so now if this is a four hour time frame candle four hour what will this look like on the 30 minute time frame right or what will this look like on the one hour time so it might look something like this so we might say that we'll have a bullish candle forming like this and then let's say it would have a bearish candle forming like this after this we might have a bullish candle moving up we might have another bullish candle moving up we'll have another one maybe it's going to move up like this and then we're going to get a bearish candle which may form like this and then like it's going to leave a wick over here and another one may come down leave a wick at this point so how many candles we got right now one two three four five six seven seven and then let's say we'll have another one form like this bearish candle like this so this is what before our candle here represents right if you look at the 4r candle right over here so actually let me just make this a little edit this a little bit so if this is the four hour candle so you have to identify that okay if this is the four hour candle how many one hour candles are there in a one four hour candle someone mentioned six i think you need to get some things checked in your brain over there because if this is a four hour candle for our candle would have four one hour candles right so if we have four one hour candles in a four hour candle how many thirty minute candles are going to be in the four hour canyon right there will be eight 30-minute candles in the four-hour camp so if you look at this four-hour candle we have to identify where's the low of this candle and where's the high of this candle right so this is the low right over here and this is the high right over here so notice how this candle went down made a low came up went all the way up created a high over here and then retraced and closed right at this point right remember when we talked about the bullish candles that they open at the bottom right here they close at the top here this is same thing happening right over here right so this is where you're reading market structure right the reason i'm talking about the 4r candle also let's say that this four-hour candle is around i would say 40 pips right 45 big this for our candle so if you look in the microstructure here we can see that price started from the bottom we made a low right price went up it created a high over here so this is the same high created on the four hour time frame right so this is the high created right over here on the 30 minute marker structure but the four hour time frame high right over there right and now we have candles forming at this point now obviously let's suppose the trend is bullish we're moving up we made a high so now my favorite setup my favorite setup is this wick fill right over here what i want to see is i want the next four hour candle to wick down and come up and fill this wick right as price is going to come up to fill this wick this is going to be my trade right away this is where i've made i made 80 of my profits this year and the year before that and the year before that right this is where i've made most of that profits now what will this look like on the 30 minute time frame right here what this will look like is if you're looking for a buy right you can't take a buy at this point because this is a bearish candle right you can't take a cell at this point because we got support right down over here and you need this support to break for price to do a sell and that would mean that you want this for a hand to go bare so we're going to talk about bullish candles right over here so what i want to see at this point is i want to see maybe now if this going to the start of the new four hour candle we might see a candle forming maybe like you know like this right when this wick was formed down at the bottom this bottom wick is a low form on the four four-hour timeframe right and then what we might see is that if the next candle starts to form bullish right over here this is my confirmation to enter the trade right if this is a 30 minute time frame and the 30 minute candles are forming bullish we're creating a support right so whenever you have candles coming down and you have a candle closing bullish after a bearish candle boom support is formed right if you have candles moving bullish and then you see a bearish candle form then that's what boom that's a resistance form right with just one candle that's how you identify these zones now when you look to the left-hand side you might see a resistance somewhere to the left-hand side right over here you might see oh yeah we have a resistance right here no that resistance doesn't matter this is your new resistance form and this is what i call the money trade this one right over here right so because if i have a bullish candle formed over here and when we talked about the trends earlier on what did we talk about right we want this candle to respect the low of this candle and continue moving bullish so what i'm going to do is if i see this opportunity happening i know that there's a 80 chance that price is going to continue up to re-test this high right if price is going to re-test this high now you have to identify that okay if you want price to continue up where are you going to place a stop loss we did a quiz yesterday on my um instagram channel and um some people said that they will maybe place their stop-loss below a support so this is where they'll place their stop-loss below the support right and i was saying that no i think we need to place our stops below this bullish candle if we want price to go up because guess what if price starts to come down and you get stopped out over here now you're out of the trade early right but if price breaks this low and continues down to the support over here now not only we're breaking the lows of the four hour but we're also coming down to a support where now the chances may increase for price to break the support and man if your stop-loss gets hit below the zone now you've lost way more than you would have lost if you had a stop-loss right right over here right so whenever you're taking a trending trade you're placing the stock below the bullish candle right here so now what i'm anticipating is the next candle to wick down respect the low of the previous candle and continue moving up in this clean range see this clean range clean candle clean candle clean candle so we're anticipating the next candle to continue up to re-test this high so as the candle is going to come up to re-test the high there's also going to be a wick fill on the four-hour time frame makes sense so you kind of like absorb this in slowly right we made a structural high this high was the wick created on the four hour time frame right over here right structure hub price retraced for our kind of retraced and closed at this point this is where the four are kind of closed now we have this wick to fill no now we had this wick to fail and this range to fill on the smaller time frames right so wick fills on higher time frames are ranges on small time frames i'm going to repeat that again wick fills on higher time frames are ranges on smaller time frames right so i'm sure everyone's making notes of that perfect so this is where i'm taking a buy at this point anticipating price to continue moving up and this is the move we are making money this is the move where i'm making some sort of a profits as price is moving up and this is all what i need now this may take 15 minutes this may take five minutes man this may take 10 minutes right if this is taking 10 minutes and five minutes perfect i've made my money in 15 minutes 10 minutes now what i can do is as price comes up to a range i could put my stops at break even and let the rest run if it continues running based on the four hours awesome i'm making extra profits right but if it continues up i've secured profits and that's it i'm done for the day i've done this over and over and over again for the last four years and made amazing returns on this strategy simple and when will this happen this won't happen all day because no no because the number one problem people have is that they'll start to look for these big candles in the afternoon time you know at like 12 p.m 1 p.m 2 p.m man it makes no sense because there's no volume at that time these situations will only happen when there's volume in the market and when there's volume in the market you have the asian session london session new york session but those are the time that there's always going to be volume in the market and it will always always work in that sense now also okay listen you know what let me take that back it's not going to work all the time there's a probability there's a 80 probability this will continue to work because sometimes man listen sometimes how easy this may seem sometimes what may happen is that the next candle let me just remove all this mess over here what can happen is that the next candle can go up and then it can come down and break below right what happens at this point when your stop-loss gets hit if your stop-loss gets hit that's totally fine because hey like you know what maybe at this point the probability wasn't on your side you know and you can't take that personally i've taken losses like this but the main thing is like if this was a 20 pip range and if this stop loss was around let's say 13 pips that's still perfectly fine because the price is coming down to stop me out i'm gonna look at this and say okay you know what that's fine it works most of the time so if i take a loss like this i'm not gonna chase this trade i'm gonna say okay you know what perfect i took a loss awesome time to call it a day what most people are going to do is they'll take this loss and then they'll take a sell over here they'll take a sell over here price will go down a little bit and then boom it's going to go back up and now they're lost in the buy and they're lost in a cell why because they changed your bias bias we can talk about later on but like this is the setup that is always most of the times made me money extremely easy setup happens all the time when there's volume in the market and this is how you break down a wick fill same thing goes when you look for bearish candles for beige wicks to fail same idea over here right but also understand that it will only happen in when there's volume in the market and uh yeah that's the reason why i hope this makes sense um i'm running a little bit of out of time over here and before i run out of time i'm gonna touch base on how we used to trade when i first started why was it profitable and why i started taking losses in that scenario so we're going to talk about that right now let's take a look over here okay so when i first started in may 2016 what we would do is we would look at five pairs right they were mostly like your generic usd actually you know what instead of writing using jpy and all those things i'm going to write uj ufc jpy we used to look at usb cad we used to look at aud well i used to look at aud aud usd um there was some gold involved and there was another player i forget i think it was um yeah i forget let's say that was new zealand so we would look at five pairs and my strategy was that okay and you know what if we so what i learned from baby pips was that you have resistance and you have support right this is what i learned from baby pips in this car so you have support and resistance and what i learned

2020-12-21 15:40

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