Day trading Didn't Work, Until I Found This Strategy...

it took me five long years to discover a consistently profitable trading strategy and I want to pass on to you the four steps that I take when finding profitable trades if you can use these steps every time when looking for a trade you are going to find profitable trades a lot more often this strategy can work on any time frame or any Market because all it uses are candlesticks the first step in this process is finding good support or resistance levels you won't have these in place before the market gets there so you aren't reactive to the market instead you're waiting for the market to hit your level and then you're taking a trade off of a support or assistance level so how I like to draw my support of resistance levels is I like to just see two clear touches or swings that the markets had and then from there all I do is just draw a resistance Zone off of those two bounces and then I just wait for the mark to come up and touch that level again and it's the same on the flip side of looking for a support level I want to look for where the markets made to pretty clear touches and Swings in the market and then draw a reversal Zone off of that and so how I'm doing that is I'm just taking the swing low down here and then where the marker had a second bounce and then we can already see that the mark came down here again and pretty much reversed off of that level and so right up here because of these two touches we have a resistance Zone and this potential for the market to reverse off of and we can potentially catch a swing lower now I like to draw these levels off of a 15 minute time frame but whatever time frame or marker you're wanting to trade on you can do it on that time frame as well and so this is a pretty basic overview of my support or resistance levels if you want a more in-depth tutorial on support and resistance levels just check out this tutorial up here but that is what the first step is for finding these trades and so the second step is making sure that the trend into that zone is broken because these trades are looking for reversals in the market and so you have to make sure that the trend is actually broken and has the potential to reverse at that area and so so to do that I actually like to look at a smaller time frame chart than what I drew my support or resistance levels off of the idea with drawing those levels off of a larger time frame is that a larger time frame has bigger weight to it and so we're looking for really strong support and resistance levels a higher time frame is likelier to give that and then going to a smaller time frame chart is going to give you a more accurate entry and you're going to be able to read into what the actual Market is doing and so for me I look at a 15 minute chart for the support and resistance levels and then I look at a one minute chart for actually the entries and exits of my trade and also reading the marker and so for here you can see that we have that big resistance Zone up here that we previously Drew off of a 15 minute chart and so what this will show is okay as the market comes up into this area we're going to expect that the market might find resistance in this Zone and look for it to go lower but what we want to do before it does that is we want to make sure that this uptrend it has is broken and so there's a couple always like to do that either using just basic higher highs and higher lows of the swings every swing in the market it's just making a stair step pattern it's just consistently going up eventually that'll switch and you can see then you'll start to say okay this uptrend is broken and a easier way to confirm that as well is just with a trend line it's just saying okay here is the current uptrend in the market it's clearly holding this level right here as support and so until that is broken I am going to assume that the market isn't an uptrend and now here the uptrend is broken and so that is step two of our process we have the uptrend is broken at our resistance level now step three of this process is waiting for a pullback in the potential downtrend or waiting for the market to attempt to continue higher and keep that uptrend going because if you think about it the Market's just going in an uptrend here well this could just be a pullback in its uptrend you know maybe it's a little bit bigger of a pullback but that's totally possible that can happen and then the market just keeps going higher and we don't want want to necessarily jump in on the trade right when it's just having a pullback in its uptrend betting that the Market's going to go lower right here and in reality it just keeps going higher and you just got in on the uptrend and so how I avoid getting in just on that pullback is essentially waiting for the market to make an attempt to keep going higher right here and then that attempt failing so essentially it makes its first pullback in the potential downtrend and so I want to see the market do this I want to see it make a pullback or I like to also call it a retest it's re-testing this high that it just made and it's attempting to break it and continue higher and so I just want to see the market do some kind of pullback here either it can even do like a double top but if it makes a new high I'm not in the trade or continuing in my step process and so at this point I just want to look for it to make some kind of retest and so this is essentially what we're looking for there it's making that retest and so that is step three of the process so big trap that people fall into with reversals is wanting to try and capture these very volatile moves like this one you see the market go up you see it you know at your resistance level here and it all lines up and you you want to capture this really fast reversal like this well these can totally happen and they do happen but what I found a lot of time is it's more likely that if you just try and catch the exact top of the market without waiting for that retest or attempt to keep going higher we just talked about you're going to more likely fall into where the market just keeps kind of chugging higher and you're gonna more than likely actually have this happen where you see the market starting to sell off pretty quickly and you think okay this is where it's reversing right here we're at it resistance level up here and in reality the Market's just kind of gonna continue going higher and so trying to catch the exact top even just on a really strong bearish bar without waiting to see how that kind of retest played out and that and initial failure right here of the trend to keep going higher it can get you in trouble a lot more times than it's worth it and so what I have found to be more consistently profitable doing this type of strategy is waiting to see how this initial retest or attempt to keep the trend going higher plays out if it looks like it's going to fail here then you want to jump in betting that you're going to have a larger reversal or if it just keeps chugging higher well then you don't even get in a trade and you don't take a loss and you just move on to the next spot that's the greatest thing about the strategy and so the last thing to get into a trade is waiting for that confirmation of seeing this pullback fail and so what you want to be looking for is a bearish Candlestick pattern for a short and then if you're looking at this on the other side of betting that the Market's going to go up you want to see a bullish Candlestick pattern and so all that is is It's the final confirmation to get in and what I like to see for that is a big bearish Candlestick so this guy right here is a great example seeing that over here would be a great signal to jump in it's just saying that sellers are really coming in here and they're wanting to jump in on a short and so that's what we want to do we want to wait for there to be confirmation of people jumping in on a short here and so this Candlestick right here is a really good confirmation of that you see it's pretty much engulfed the whole last candle and it's giving you that confirmation to jump in on the trade and so from there what I like to do is I like to jump in right here at the close of that candle I always like to wait for the Candlestick to close it makes a confirmation a lot more clean and when you're actually trading especially if you're trading on a smaller time frame like I am the candlesticks can form very quickly and so it's better to be patient and wait for that and so I like to jump in on a trade right there and then I actually like to put my stop loss just right above this little swing that we had here and so what that does is all I'm thinking is hey if we if the market comes down here and breaks this high right here and stops me out well if we're going with the idea that well the in and up Trend the market makes higher highs and higher lows well my idea here is I'm thinking that the Market's going to start making lower lows and lower highs and so if I get in here and bet down and the market makes breaks as high well I'm wrong and I want to get out and that's totally okay you want to cut your losses and let your winners run and so from here I jump in on a trade put my stop here and then I like to have a more fluid management style that we'll get into in a minute with a live example but from there I like to just let the trade play out you can see there was a nice sell-off from there and just based on this that would have got you if you kind of got out maybe here at this pullback somewhere down here that's uh three or four times your risk and so if you're betting a hundred dollars up here if you're getting about three or four hundred dollars per trading so that's the really nice thing about this strategy is you don't have to be right all the time you actually only have to be right 25 or 30 percent of the time to be consistently profitable over the long run and so it allows you to make mistakes and not be right all the time but still be consistently profitable so to solidify this trading strategy for you I want to walk you through some real live examples of Trades I've taken with this strategy recently and I want to walk you through these four steps and exactly how I found these trades and then manage the trades as I was in them and so the first thing we're looking for of course is our support or resistance level and so this is the market currently right when I was looking for this trade on a 15-minute chart and so all I'm seeing for a resistance level is you can see the markets bounced up here multiple times and so I'm just thinking okay I'm gonna draw a resistance Zone up here because well if the market comes up here again I want to bet that it's going to reverse off of that because it's shown that it's reversed off of it multiple times and so just zooming forwards here on a little 15 minute chart you can see the market did come up here and then I want to watch on a 15-minute chart to see that Trend breaking and so to jump into an actual live recording of me taking this trade we're looking to go down that step process right and so I haven't drawn it on my actual chart when I was trading at this time but I will in a second and we'll see it but first step though is looking for that resistance level so we have that up here and then we have a uptrend right here you can see that the market is in and it is just breaking that uptrend it's near the highs it's broken it up Trend so we have one two and three and so the last thing is we're just looking for the market to make that retest we have one and two we need three and four now and so here you can see the market is making that retest up it's starting to push higher here and then from there we want to see that retest get rejected again this is the market showing that okay is the trend gonna continue higher or not it looks like it's starting to reject it here this really big rejection Candlestick and so I like that as a signal I want to jump in right here on the close of that and so you can see that's where I jump in on the trade and there I I started to draw the uptrend here and the resistance level but from there I'm gonna put my stop like we talked about above this little swing High it had because again if the market comes up here and breaks this I'm going to assume that okay I was wrong this is just a messy pullback that gave me a signal to get in and it's going to keep going higher and so from there I like to have a more fluid management style I like to just see how the trade plays out I like to essentially use a trailing stop loss with my trades and so I like to move down with the swings as they happen and so when you're in these trades sometimes they take a while to get going and so what you want to do is you want to leave your stop loss up here but what I like to do is once a trade starts to kind of get somewhere down here in my favor into the green I want to move my stop loss to break even because I like to take risk off the table and slowly capture my profit so pretty much the Market's breaking in my favor here and so I'm going to start slowly trailing up my stop loss as it moves down and so we have another good push happening here and so as we do that I'm going to again just slowly move down with the swings and so on the flip side of trying to read the chart as it's going down you can see I've drawn this downwards trend line here and so what I want to do with that is okay my thought is well the Market's going really quickly in our favor that's awesome but it can also reverse very quickly just like it did this it had this big uptrend right here and then It reversed very quickly and so I want to be aware of that because we're in a trade now you don't want to lose all your profits and so my thought process here is okay we have this pretty clear tight downtrend and so I want to move my stop up with the previous candle and if it breaks this downtrend I want to get out and so the market here has gone very very quickly in my favor and you can see we're actually at a support level here as well and so I'm gonna expect that the market is potentially going to either keep going lower or reverse very quickly and if you think about it if I'm using this downwards trend line to get out of the trade well at this point because it's so far away from that downwards trend line it would have to come all the way up here potentially and you can see that would be a lot of money loss potentially if it does that very quickly and so I elected to kind of just Trail up my stop even Tighter and get out because at this point I'm up almost four or five times my risk on this trade my wrist goes right here and I got this much in profit and so that was four or five times my risk and so that's a really good trade and it's more likely that it it reverses at this point and just zooming forwards a little bit that was a really good spot to get out it had still broken that trend line and I got out right about down here I pretty much capture the whole swing now it doesn't work that cleanly every single time more than likely when I'm looking for a reversal it takes a while to get going or it has some pullbacks against you that you have to hold through now that can be hard and takes time but let me walk you through another trade example to kind of show you what that's like and so here just going through our checklist of steps again is here's a support level now to pause the recording real quick and show you you where I got the support level you can see I was looking at on a larger time frame again a 15 minute chart the market had a nice bounce here came back down here and started to make a pretty clear bounce here as well it had some good consolidation here so my thought is okay I want to see it come back down to this level and then look for a reversal higher and so that's where this support level down here is drawn off of and so that's our step one and then step two is just making sure that that downtrend is broken and so right here we have a really nice tight downtrend you see the market has broken that and then from there again we always want to wait for that pullback or retest and so right here we want to see the market kind of have some kind of pullback here before jumping in on a trade and betting that the Market's going to go higher and so when we see that of course we want to wait and read into the candlesticks and look at what kind of rejection or reversal it's having and so if we watch the Candlestick here you can see it's having a nice pullback there and then a quick move higher now let me just re-show you that because that was really fast and so what the market did here that really showed rejection is it made an attempt to keep going lower and then in the same Candlestick it started to reject that little pullback and go higher and so what that is showing me is it tried to sell off and then It reversed really high and so that's kind of reading into the candlesticks on a smaller time frame and the intricate little bits of it and then from there I put my entry order here and wanted to get in on a long hair and so this is just an example of me betting the Market's gonna go up instead and then I'm gonna get filled and then I move my stop loss here and then I like to have my profit Target kind of somewhere up here my platform has to have a profit Target in as well at the same time I would prefer to just have no profit Target but generally I try and leave it at around three times my risk as a profit Target to kind of just see and then if the market slowly starts to move up I will just slowly move move it away and so put my stop loss below this little swing low here again if the Mark keeps going lower I just want to get out I'm wrong move on to the next trade every trade you take isn't going to work out it's all a part of the numbers game right over time they are going to consistently work if you have a profitable consistent strategy that you follow every time and so here you see the market slowly starts to chug along and it's really slow at this point and so what's frustrating about that is it's hard to just let things play out there's plenty of times here where I could have moved my stop to break even trailed it up here I want to give this pattern and Market time to play out it's been pretty back and forth you can see and so I want to let things go and so at this point it's moved pretty good in my favor there's kind of an uptrend here I'm seeing I'm okay moving it to break even if it comes back down here and gets me out of Break Even well it's probably going to break this little uptrend as well and I'd rather get out of the trade because in these kind of markets where the Market's more back and forth like this it's harder to get a very clean trade in versus the last example we had it was very quick easy and clean those are the trades we want to be taking every time and we'd like them to be like that every time of course it's not going to happen some trades are just going to be like this and you have to have your mental fortitude and so what I'm doing actually during this trade I'm actually vacuuming my hallway behind me and my room you know my dog leaves a lot of hair everywhere and so I'm actually not really watching the chart my thought is hey my Stop's in a good spot you know if the market comes up here and just smacks me I'm okay getting out at 3x you know that's a win I'm still happy and so I'm actually not watching the chart here normally I look at it kind of often but because sometimes it's so slow and you know if you feel your emotions you're kind of getting nervous or feel like you're going to do something stupid walk away from your computer and let things play out it's really easy to make some got impulsive move if your hands are just sitting on the keyboard and mouse and I found that it's better to either stand at the back of your room or do something distracting if you know that the Market's going to take a while to play on so here and the Market's just slowly chugging along and I'm not watching actually I'm you know in my hallway vacuuming and all of a sudden I don't know is it all of a sudden starts going higher I don't know some news doesn't matter it's just the market started ripping higher and knocks me out at my profit Target and so that's a little frustrating because I actually never had that happen to me because I'm usually watching and very rarely does this happen in your favor I usually feel like it's more likely to do that and knock you out for some random reason but you know that's okay it's still a really good spot to get out at the highs and so I used to have a fixed profit Target normally and I wouldn't manage to trade I would suggest going with a fixed profit Target of two or three times your risk initially focus on the entries that's really the most important thing about trading because the management is that you're Min maxing you know you're trying to squeeze as much as you can out of a lemon or an orange but most of the time you're still gonna get the majority of the Swing doing either style now if you want to really dive into this I have a free class that I link in the description below this video this video really just gave a simple looking overview of my strategy trading is definitely not super simple it takes a long time and a lot of effort to actually be consistently profitable at and if you want to just watch more of my videos check out this video right here it goes way more in depth into looking for reversal patterns if you want a more in-depth exploit how the hell do you say explanation if you want a more in-depth explanation there we go

Channel: Riley Coleman

Views: 144,252

Keywords: live day trading futures, day trading strategies, futures trading, futures trading for beginners, futures trading strategies, trading strategies, trade ideas live, day trading live, stock market for beginners, price action trading, Price action trading strategy, price action trading system, price action trading live, price action trading for beginners, price action trading small account, trading price action, Trade ideas live, live day trading, scalping, scalping strategy

Id: EOWi5YWMHCY

Length: 19min 36sec (1176 seconds)

Published: Sun May 21 2023