How to Place a Trade from Start to Finish

you guys have been asking for it so in this video i'm going to show you exactly how i set up every single trade that i take my thought process behind it how i analyze it from start to finish and what i'm looking for on multiple time frames [Music] welcome back to the channel everybody my name's artie and this is the moving average a show where we discuss everything day trading to keep you profitable on a consistent basis so as the channel grows and so does the discord community my inbox also grows dramatically i get so many questions every single day and i love helping you guys but the best way for me to explain this is through video so you guys have requested to see a full breakdown of how i analyze what i'm going to do for the day how to trade the market open how to set my take profit and stop loss what time frames i start with and then what time frames i enter my trades so this is going to be a full video breakdown of exactly how i start my day looking at the charts up until that trade is done so let's just get into the charts all right i am planning on trading us 30 today so what i like to do is get it on the one hour time frame this one hour time frame gives you a less noisy clear depiction of what the price is doing now what you want to do is first draw your levels of support and resistance these huge peaks and valleys that you see need to be marked up so that you know at what areas there is a lot of buyers and sellers huge momentum shifts like this are key levels that the price is either going to go to or reject from don't put too many support and resistance levels just on the major areas the absolute bottoms where there's nothing above or below and then the middle range where it tends to reject off of so just by looking at this completely naked trading you can see we're kind of stuck in this range of consolidation for quite a bit of time yes there are spikes up and down but overall the price is trading sideways now if you look at the most recent price action you can see that there is a basic downtrend right now now why is it important to see what the current trend is the current trend gives you a depiction of hey like the price is dropping so maybe considering short positions is going to be your better bet for example as we are creating lower highs right here if we draw a trend line across this you can see that the price came down came up and this is where the trend line was first formed it swooped down again to come up and retest that trend line and reject it off of it going down to a previous level of support then we broke through that trend line came back to retest it twice and then shot up this is why trend lines are very very important breaking structure or breaking a trend line usually means that a trend reversal is going to occur and that's exactly what happened the price started to trend up up until we met that previous level of resistance dropping the price back down into the ranges of support so just naked trading this is what i'm seeing so now i have a bias to the short side but i also need to keep in mind as this price starts coming up if it comes to hear and respects this trend line it should reject down to this previous level of support so right now for today because this is an hourly chart my only two options are either it's coming up to this trend line and coming down or if you see we've had some very light support right here which may actually now turn into resistance so i'm going to put one more line right here but because it's a minor level of support and resistance i'm going to change the thickness and the color of the line to blue to know that this is a potential rejection area so either way i'm primarily looking for short positions either it's going to come up to this trend line test it and move down or it's going to reject off of this smaller lighter level of resistance so now that i have a general idea of what i should be anticipating for the day now i can take it down to a lower time frame put up my indicators and find that exact entry you guys know i love to trade the big ass candle so that's what i'm going to be looking for so obviously i have my prices marked up here but what i'm looking for here is small differences in the rsi when the price reached the same levels consecutive so for example right here we have the test on this area of support as well as another test on this area of support so this is technically a double bottom but if you look at the rsi right here and right here you can clearly see that we created this double bottom but right here we were sitting at about 39 on the rsi and now it's at 27 meaning that it's more oversold than it was here so if something's more oversold at the same level it should continue up so due to this so due to this divergence that i've seen on the rsi my bias is more towards this scenario of coming up to this trend line retesting it and then rejecting down because overall we are still below the 50 line on the rsi which for me means bearish momentum so that is how i analyze on the one hour time frame now let's break it down to the 15 minute okay when trading on the 15 minute this is where i like to add my indicators because it's far easier for me to see things with my moving averages as well as either an engulfing candle indicator or something to show me momentum basically all the indicators that i use are momentum based so the first indicator that i like to put up is a three smoothed moving average if you type in smoothed into the indicator box it's right here three smooth moving average by hamid safi add that to your chart i keep it in my favorites list rsi you should already have up with just the line in the middle at the 50 level and the other indicator is the engulfing candle indicator by ramunos this just lets you visually see where the engulfing candles are and the engulfing candles is my big fat candle strategy that's the key indicator for me to get into a trade so with the three smooth moving averages you want to you want to change the settings just a little bit you want to change the first one to 21 the second one to 50 and the last one to 200 and these are the colors that i choose but it's your personal preference i use white green and red so now looking at what the price is doing we are trading below the 200 period moving average on the 15 minute time frame this blue line that we drew is a previous level of support and resistance but it is minor now that we see it clearly with the moving average it's also rejecting from the 21 period at this exact same level and zooming in a little bit closer you can actually see that that rejection candle is actually an engulfing candle and this is a three line strike a movement up and then a rejection down engulfing the previous candle you've seen this in my sniper entry video i mean it sucks that i wasn't on the charts at 6 15 a.m because if i would have saw this reject off of this level and the 21 i would have gotten in on a trade right here as far as my stop loss i would have doubled the length of that candle just eyeballing it that's about a 12 point stop loss on us 30 and the area that i'm going to be targeting first is right here right there it's a 1 to 1.2 risk to reward ratio the next level that you should target is right here where there was a strong rejection and then your final take profit level would be right here where we had that previous level of major support and resistance so at this point it's already too late for me to get into this move what i will do however is actually monitor what happens at this level where we're in this kind of deep consolidation so this is a level that i'm going to keep in mind and i'm just going to be patient and i'm going to watch and see what happens right here so as the price goes this 21 moving average is going to continue down so what it may actually do is reject off of it test the 21 again and continue down again keep in mind i have a bearish bias on this trade because i looked at a higher time frame and i'm seeing a downtrend so this is the trade that i'm going to be monitoring for today but i want to break down had i been on this chart an hour ago how i would have entered it and how i would have set my take profit and stop loss levels as well as my position size i want you guys to get in the habit of doing proper risk management risking only one percent per trade with a one to two risk to reward ratio so that means you're shooting for a two percent profit on every trade now for me and the funded account that i'm going to be trading on that's a hundred thousand dollar funded account meaning that one percent risk is gonna be a thousand dollars and to take profit level of two thousand dollars and while recording take profit one got hit so now we're targeting take profit too so while trading a large account size and with the contract size of indices you want to keep a relatively consistent order size every time you trade i'm very comfortable with a 0.2 lot size on us 30. so with the 0.2 lot size so with the 0.2 lot size every dollar that us 30 moves i get 20 bucks with this tiny scalping trade i can now take multiple positions because my stop loss was only 12 i can now take four positions of a 0.2 lot size and overall if all of them hit my stop loss i would only lose one percent of my total trading account balance this is why i stack positions instead of doing one big one i can open up multiple smaller positions each of which i feel more comfortable with than a large position and as i start getting into profit i can close out a majority of them quickly instead of adjusting the size and closing it simply by clicking the close trade button instead of going into close adjusting the lot size and then closing a percentage of that trade i can simply just click and close a trade that's why i like to do multiple positions and stacking my positions as the trade goes into my direction so i'm gonna actually move this uh take profit level to here now because the trade is going in the direction that i had anticipated hopefully this can play out during the course of this video so right now with that you're looking at a risk to reward ratio of 1 to 2.5 but at that first take profit level you definitely want to take some profits off the table that way you've made your money regardless as you're going towards that second take profit level so for each trade you're going to be adjusting the lot sizes because with this one easily you can see that the stop loss was really really tight because of that engulfing candle and the two rejections that we had it was a multi-faceted rejection it was not only a rejection on a minor level of support and resistance but it was also rejection on a moving average those two things right there make me very confident about this trade now this is why i like to trade the 15 minute time frame because there's less noise there's less stress you can see the chart you can get an idea of nice big momentum moves and still have time after you've done your analysis on trading view to get onto mt4 enter a position set your take profit set your stop loss and then just watch the trade without having to deal with the one minute noise because if you take this down to the one minute look at this you had a swing down a rejection up down up down big engulfing candles and all of this this is the noise that keeps traders out of holding their trade you know you were in profit and then you went negative and then back into profit the price fluctuated so much in each one of these 15 minute candles this is what causes traders to close trades early and or close them at a loss because they got scared right here so if you're struggling with holding trades literally do not go any further down than the 15-minute chart because if you're seeing something like this where it's red the entire time i mean you're a happy camper and if you really struggle with actually holding a trade your take profit and stop loss levels do your analysis enter your trade right here set your stop loss and set your first to take profit don't go for multiple take profit levels and then literally shut your computer turn off your phone and go on a bike ride for an hour then come back to your trade if it hit your stop loss no big deal you have proper risk management and you only risked one percent after you have a loss you can sit down and analyze where you went wrong or what you can adjust for future trades and if it hit your take profit awesome you just got paid to go on a bike ride now why do i have the rsi up all the time on my charts i'm looking for divergences but i'm also looking for the momentum if it is below the 50 we're looking for cells it's bearish momentum and so as you're actively in a trade and monitoring it and you can see that the rsi is below the 50 level you can have more confidence in holding that trade a little bit longer because the momentum is to the downside and that's a big aspect of trading is having the confidence to hold your trade based on what your analysis was now i want to touch back on the risk to reward ratio because the stop loss is going to be permanent like it should be double that engulfing candle all the time so whatever that is that's permanent that's your risk that's your one percent risk on whatever position size you choose you should calculate it using online calculators if you can't do it off the top of your head but your take profit that is the one that's adjustable if you cannot manage to get a one-to-one risk to reward ratio at minimum out of a trade you should not be taking that trade if the next level of support or resistance is larger than a one-to-one risk to reward ratio you can take that trade and that should be your take profit level so for me even though this price is continuing down if i were to set this trade i would set it for this at a 1 to 1.3 and i would take my 1.3 as my profit and walk away i don't need to shoot for that 2 it's not set in stone the only thing that's set in stone is your stop loss that's the set it and forget it trade and that's what i recommend to 99.9 percent of traders that way they don't have to worry about a trade they can keep their emotions out of it they literally set the trade and walk away if you do however have more experience with controlling your emotions while trading and you want multiple take profit levels what you can do for example me i would have opened up four positions here at a 0.2 lot size for each one i would have closed three of those trades right here at this and the fourth one my take profit level would have been this next zone that i was targeting so at this point i'd already have three trades closed and in profit and this fourth one would be going by itself until it hits that take profit level even if it's a loss and it rejects and goes up to my stop loss i've only lost .25 of a percent which still keeps me in profit for this trade because i had three winning positions already closed and just like that we hit take profit two i really hope that made sense if you need more clarification please join our discord group there's thousands of members on there all helping each other out and i'm on there most days to answer questions i know this is like really advanced stuff and using support and resistance levels and breaking it down to smaller time frames but this is the video that you guys have been asking for the more in-depth deep how i trade every single time i get on the charts and also i need to make this crystal clear i do not win every single trade no trader no guru wins every single trade i just had two back-to-back losses using this exact same strategy and that's just the name of the game but if you are consistent and you can work through the losses knowing that your strategy has good results over time you will always be a profitable trader so as i mentioned earlier the three line strike is one of the best entries with the tightest stop losses that you can get in any technical analysis so if you have not seen that video please watch it right here and if you guys got some value out of this video and you like the way that i teach consider subscribing to the channel by clicking this button right here thanks so much for watching and we'll see you in the next video

Channel: The Moving Average

Views: 235,898

Keywords: how to place a trade in forex, how to place a trade, how to trade forex, how to get the best entry in forex, how to trade indices, how to trade indices in forex, how to set a trade for beginners, how to trade, how to set sl and tp, how to analyse charts in forex, how to analyse chart on trading view, day trading, forex trading, scalping, tradingview, trading

Id: xlmBMfhtokQ

Length: 17min 29sec (1049 seconds)

Published: Thu Jun 10 2021