3 Step Process To Finding The Best Trades - Keeping Trading Simple

what's going on everybody welcome back to my youtube channel so today's lesson is on multiple time frame analysis now a lot of you have been asking me for this so i thought that i'll get it done and i really hope that you enjoy it now i just want to say i am running out of ideas to be able to help you guys continue growing as traders so in the suggestions below make sure you let me know what you want and i'll get it done for you also smash that like button for me while you can it'll only take a second or two and let's get the intro roll in okay so what is multiple time frame analysis well it's just simply the process of going through a higher time frame and then scaling down to the lower timeframes to look for an entry so what's the point in this well i've mentioned it before our first time frame is going to be based on structure so when we're looking at this time frame this time frame is ideally going to give you a directional bias in the market so is the market structure pushing to the upside or is the market structure pushing to the downside or is the market moving sideways the next time frame that you're going to use is what we call a behavior time frame so this time frame is going to give you a clear direction of what the market is doing is the market creating lots of wick rejections is the market breaking structure is the market pulling back to create higher lows or lower highs etc etc the next time frame that we're going to look at is our final time frame which will be our entry time frame and this time frame is simply going to be what it is our entry time frame if the market is in a downtrend then you're looking to take short positions and if the market is an uptrend then you're looking to take long positions this looks kind of funky but you know what i mean okay so let's go through it let's clear the charts and let's move back up okay so we're back at the charts for this example we're going to be using or we're going to be looking at pound jpy we're going to start with our first time frame the first time frame that we're going to be using is the 4h time frame now in my personal opinion this is my favorite time frame to trade on because i just love what this structure does or what the 4h does in terms of structure for me it's just the balance between not having to wait too long and not having to feel like i'm rushing into trades by using the hourly or the 15 minute it just gives me a good balance for the week as an intraday trader or a day trader should we say whatever you call it so let's look at this market structure first things first what do we see is there a clear directional bias on this market structure now the majority of you will be looking at this and your eyes will be focused on everything that's happening here well no what i'm focusing on as a day trader is what's happening over here i don't care what's happened to the left you're not going to see me bring over support and resistance i'm not going to start plotting levels like this and trying to figure out where price is going to respect or where price is going to go or what price is going to do when it gets these levels i mean look at the screens now it's just absolutely pants so i'm not going to be doing this i'm an intraday day trader and i want to trade what's happening in the market today and the market's behavior so i'm looking at what's happening here so what is my directional bias that's what i need initially well at the moment i don't have a directional bias i can't see what the market's doing because the market is ranging so what i'm going to do is i'm going to mark my high just so that i know that's where price is respecting not that i'm looking for sales just where price is respecting i'm going to mark my low now looking at how the structure is moved i can see the majority of the wick rejections have been in and around this level here now i'm not worried about this price action right here and the reason for that is because price has broken out and broken back in so in theory if this was a true representation of a cell structure then in theory we should respect this level or we could have continued pushing down so this fake out as you may know it or a breakout break back in as i call it is nonsense this right here just doesn't exist for me okay i just see this as a big indecision so now moving forward i have my higher marked out and have my low marked out what is the plan now well the plan is to wait for a clear directional bias i want to see if the market will break above to indicate momentum pushing to the upside or i'm looking for price to break the structural lows to indicate momentum to the downside now clearly this is on a replay mode because if i was to do this in live markets we'll be looking at four hours until the first candle closes and i get my directional bias so just work with me on this okay so now let's press the next scandal so the market pushes to the downside now it is very very strong bearish now do we have a break of this low well no we don't what we're looking for the market to do is create a clear identifier mark of breaking and closing blow structure we're talking a clear identifier mark so we want to see price breaking strong and closing now look what happens if you decided at this point in time it was time to scale down and look for some entries on the lower time frames because you thought this was the breakout and you start doing what most traders do which is start doing all of this and then doing this and then saying this is the breakout here look or no it's just broken this low you're going to find yourself in big trouble right look at the candle that came immediately after this look at the price action here what came immediately after this breakout okay so you have to just make sure you're waiting patiently so the next plan of action once we see price breaking out of this structure to the upside what are we doing well first we're identifying that the directional bias of this market for today for our trade-in session is strong bullish that means we have a directional bias now what do we want to do we want to go down to our behavioral time frame the behavioral time frame as you can see here is clearly identifying that the market is really strong bullish we were sitting in this range and we finally broken above it for a long period of time that is now telling us that the balls are clearly in control of this market now we can't take an entry on this because we're never going to take a buy when the market is pushing to the upside and we're never going to take a sell when the market's pushing to the downside what we're looking for the market to do is exhaust and come back to a key level so where is our key level it's right here our key level is right here we know this is our key level because this is where price was respecting for a very long period of time this is where price was failing to break above for a very long period of time and now we've broken above it so what we want to see the market do is just come back to this level and we are just patiently going to wait once the market gets back to this level as it has done what we can now do is we can adjust this slightly we know that price has been leaving wicks behind here leaving wicks behind here bodies are not closing above and we can see prices come back to this level now this does not mean we're going to rush in to take a buying position that's not how we trade remember this is not our entry time frame if we do something like this this is called trading on impulse and trading on impulse will lead to disaster okay so let's remove this we have price back at our key level just go back to that point be patient okay there's no reason why you need to get into the trade first you can get in second and third and you're still going to be all right because the truth is understand this if the momentum of this market is going to continue bullish then that's what it's going to do okay if you're wrong you're wrong get out find the directional bias and get in the right trend okay now moving down or moving on we can see prices come back to our key level what do we do now we're scaling down to our entry time frame and this is the last time frame that we need for this multiple time frame analysis so look at this prices come back now what most traders would do is they would look for a trade immediately on this time frame we saw what happened when we took an immediate trade an hourly and look if we take an immediate trade here we are also trading on impulse now i'm telling you now what i'm telling you is just literally going to change your career as a trader okay like i'm giving this to you and this is just golden nuggets and i'm not gassing this up this right now is going to change your trading forever okay we saw on the 4h time frame which was our structural time frame that the momentum of the market was up so we're looking for buys we saw in that hourly time frame that the momentum at this moment in time is down but all we needed price to do is come back to our key level we see the wick rejections so now we're scaling our final time frame i want to ask you before i tell you where is the momentum of this market structure think about it if you tell me up you were wrong the momentum of this market structure is down we are looking for buyers only make sure you know that we are looking for buyers only so when we're looking for buyers we are looking for buyers in an uptrend not in a downtrend at the moment looking at current price action where is the momentum clearly down and what is the trend clearly down so what we have to wait for is for price to shift in line with the 4h time frame being bullish we need the trend on the 15 minute time frame to change from being bearish to then showing us a strong sign of it being bullish so remember all the buyers that these retail traders are taking down here and all these impulse entries that retail traders are taking down here look what's happening to them they are getting stopped out now we're not phased because we know what the higher time frame is doing so we are waiting patiently we need to see that this market structure is respecting this area and in order to do that what we need to see happen is a trend change so now notice for the first time in a very long time price action was not able to break above this red line okay view this as a brick wall we can now see that price is starting to respect this key level we have it in the back of our mind that the 4h is strong bullish for this period and we know that the 1h has come back to retest this key level all these buyers that these retail traders are jumping in impulsively they have lost they have been stopped out the market now look what's happening the balls are showing their presence based on market structure and based on simple price action we know at this moment in time the market is changing its directional bias we can see that it's gone from being in a downtrend it's now clearly identifying itself as being in an uptrend we're now following simple rules which is never by in a downtrend and wait for evidence and confirmation for an uptrend to be present once we get this information that's when you can take a trade and i like to take stop entries because i like to enter with momentum and for me personally it's just been the best way to trade for the last four years of my life and we set our entry as a buy stop we go for our one to three reward ratio and then we let this trade play out now the thing is with this trade is that we know we're trading with the right direction because the trend is up we also know that the 4h has presented itself for this period of time as being in a strong bullish phase and on the hourly we know prices respected this structure now maybe i shouldn't have spoken through that so we could really get a good feel for this take profit but look what's happened here we have free time frames we have free confluences and we have our perfect entry perfect entry does not mean it needs to win but it just means that the odds are more likely to be in our favor than not and that is how we do multiple time frame analysis the rox effects style only joking i hope you enjoyed that guys please smash that like button subscribe if you haven't turn on notifications and until next time take care you

Channel: RockzFX Academy

Views: 694,813

Keywords: how to determine forex entry point, how to determine entry and exit points in forex, how to enter a trade, best entry point forex trading, forex entry point indicator, best entry point forex, how to enter a trade in forex, how to enter trade in forex trading, how to enter forex trade, forex when to enter, forex entry confirmation, how to find entry point in forex, entry point forex, forex entry techniques, forex entry point, forex entry point strategy, forex, forex trading

Id: bGKFvrjsnZA

Length: 12min 59sec (779 seconds)

Published: Fri Aug 07 2020