How To Trade The 1 Hour Chart (as a beginner)

hey boss it's stephen your honest trading coach and today i'm going to be teaching you how to trade the hourly chart i never thought it was possible to day trade on lower time frames like the one hour and 15 minute chart while also having a full-time job up until a few months ago a few months ago i developed a strategy that's actually been in development over years of my trading career that's been giving me some incredible results over the past four months i've traded this strategy and the outcome has been amazing and this is literally what i consider the best strategy to trade if you have a full-time job now as i said this took me years of trading experience to develop but instead of it taking you years to develop this strategy i'm going to be teaching it to you over the next 15 minutes sound good great then go ahead and click that subscribe button down below the video and the notification bell to be alerted when we come out with more free content just like this if you're already subscribed then it's a pleasure to have you back let's get started i had a trade yesterday on the euro dollar using the exact strategy i'm going to be teaching you in this video so first what we're gonna do is take a look at a clip from yesterday me placing that trade then we'll come back to the euro dollar i'll explain the entire strategy to you and then we'll take a look at the results from that euro dollar trade and get into the rest of the video so i'll be right back after this what's up traders right here we're on the euro dollar i'm looking at this as a potential buy so what i'm going to do is go ahead and open up an order create a new order we're looking to buy we're looking to buy at market looking to buy i just hit stop order oh my god looking to buy at market so i'm going to put my stop loss in it's going to be 18 pips i'm going to go ahead and throw the target on here as well we're looking at a 2 1 on this one so 36 will be the take profit where they're gonna risk one percent and go ahead and click the buy button there we go involved in this trade i'll keep you guys updated on how it plays out i'm gonna do a full tutorial on this whole strategy so i'm sure we'll be getting back to that right about now so that was our live trade from yesterday what i'm gonna do now is break down the full strategy and then we'll take a look at the results from that trade with this strategy we're gonna be looking for two very simple setups on these setups we're gonna be utilizing multiple time frames and the 50 period exponential moving average so if you're comfortable with that then let's get started and go over setup number one which is what we utilize to get in that live trade you just saw on the euro dollar so here we are on the euro dollar we're actually going to take a look at that setup and on this pair for setup number one what i'm looking for is if the market is trading below the 50 ema which is this blue line you see right here on my screen if the market is trading below the 50 ema then i'm looking for buy trades and i know that makes no sense right now but trust me it will in just a second i'm not just looking for buy trades anywhere or just based on some random price action pattern what i'm going to be looking for if we are below the 50 ema is my next level of major structure that the market will inevitably hit if we continue lower so if the euro dollar is right here let's put a horizontal line on the screen and it's going to continue lower inevitably what level is it going to hit if it does continue lower if you said this level right here you would be right and the level i picked i'm gonna explain why and how i mark these levels off because that's a question i get all the time my level for this particular trade looks just like this and i'm going to go ahead and put a box here to make it easier to see this green box is the level i'm paying attention to for long trades on the euro dollar if price is right here this is that full strategy so the market's right here i look below and i find the next level of support and i find a way for it to touch multiple times that is a must this level of support must have been tested multiple times and if it has been tested multiple times i want the lowest bodies of the support level to be touched with my level my box that i draw so this k in this case we have one touch we have two touches that means in this area is where i'm looking for possible buy trades here's the second part we've now utilized the 50 ema we're utilizing a major level of structure support and what we're looking for at this level is not a complete reversal we're not looking for this market to head higher and start trading way up here i'm looking at this level to provide a bounce before trend continuation to the downside with that being the case this is when we utilize lower time frames so we push down we're now closer to my level we're actually in the level now and what i would do at this point hopefully you're following along hopefully you've taken notes up to this point is right now my other two conditions are already met we're trading below the 50 ema we're at a major level of structure that's been tested multiple times that i'm looking for a brief bounce out of i'm gonna go down to lower time frames and look for possible entries what are my possible entries they consist of double bottoms hammer candles buying pressure of some kind a big green candle would be fine so let's push the market forward here we get nothing there market pushes up a bit let's hit play to make this a lot faster market pushes down and there we go okay right here this is exactly what i'm looking for i know we bounced out of my area just a little bit but that's totally fine we came out of it and then the bulls after this bearish move down i'll zoom in on this after this bearish move down bulls took over directly afterwards creating a big green candle this candle has a lot of momentum and this candle is a place i would put a buy trade using this strategy so let's count it off we have a market trading below the 50 ema we have a market at a major structure level while we're here we're waiting on just a little bounce before the market continues in this downtrend since we're waiting on this little bounce our confirmation is show me buying pressure big green candle in this case with this big green candle i would have a stop loss below this swing low for me personally i put my risk to reward at a 1.4 to 1. this is a little bit like what my trade would look like in this scenario market pushes up hits that entry it's that target my bad so now you've seen what that looks like i'm actually going to show you our live trade let's bounce out to the one hour chart our trade actually happened a little bit lower and what i want you to do right now is tell me what you would be looking for we're below we're below the 50 ema right if we're below the 50 ema i'm looking for my next level of support down here is a very important note i'm looking for my next level of support that was not the level that provided the pullback okay because if we're going to continue this downtrend then inevitably we will break and close below this support level i am not looking for buy trades at the level where the pullback started the most recent pullback that's something to definitely write down in your notes so i wouldn't be looking here if i'm not looking there let's put a horizontal line on the screen to make this really really easy if i'm not looking here then i have to look left and lower where's my next level you guessed it it's right there so for me this level would look something like this because that's the place i can get the most touches i have one two three four touches if i put my box my area right there so in this area is where i'm gonna be looking for possible trades and you're about to see exactly what happened on the trade we took yesterday okay so here it is we've gotten into my zone remember this is the area i just said and you saw the trade from yesterday that i was looking for possible trades in right if this area is an area i'm looking for possible trades in because we're under the 50 ema we have a major level of structure we get there i'm expecting a bounce out and then if i push further down all of that lining up i went down to a smaller time frame on that trade the analysis behind it is that i went down here and i found a double bottom that was right here i noticed that my entry was going to be right here on that double bottom exactly as i explained earlier i'm looking for price action patterns in these levels and that price action pattern while in this level was right here with this double bottom so we have that double bottom let's see what the market actually did and if you'll notice from the live video i actually got a late entry i saw that double bottom way way after that it actually happened so i got a later entry way over here but that was the reasoning behind the trade so let's continue and see what happened with this market my entry obviously this hit targets my entry though was right here on that next candle because i could get in right at where i got where i would have gotten in on the original trade so that's the euro dollar trade and that's the first setup of this strategy again guys i've been trading this for the past four months and it has shown some excellent results insane results for me that's no guarantee it will for you this is just something i wanted to share with you because it's been very beneficial for me and if you have a full-time job or prior obligations i know it's going to be extremely beneficial for you as well so that is set up number one let's move on now let's talk about setup number two and then we're gonna dive into the timing aspect of this strategy and how you can implement it into your trading even if you have a full-time job let's look at setup number two right now if you've enjoyed the video so far go ahead and click that like button for me and leave a comment it does wonders for the youtube algorithm so we can get this word out the strategy out to all the traders possible all the traders that we can and here we are looking at the aussie new zealand i'm gonna show you setup number two which is a trend continuation setup earlier for setup number one we were looking for levels of structure looking left that would provide a bounce before train continuation this time for setup number two we're actually looking for trend continuation so on the chart in front of you let me let me define the rules first the rules are market must be trending below the 50 ema so right now we're breaking through structure levels below the 50 ema that's our first setup the second or first rule the second rule is that we have to pull back to the next major level of structure looking left that could provide resistance for this market you tell me where you think that is i personally define major levels of structure as a recent level that's been tested multiple times what do we have right here on the hourly chart if i'll put a box here that's red it'll probably make it easier to see right here on the hourly chart we have a recent level of structure support that was broken below now this level has been tested multiple times as support and if the market gets back up into that level do you think we have a good chance of the market using that level as resistance and falling from that level to continue this overall downtrend i do that's personally that's the way i trade so that's exactly what i'm looking at here let's push the market forward and remember we're not only utilizing the 50 ema and structure levels we're also utilizing multiple time frames so it's important to note that you're not gonna be trying to get in on the one hour time frame because if we do that for us to hit our targets we probably have to get all the way down to this level and maybe even break that level but if we go down to lower time frames we can get a little push out of this zone and this will hit our targets if we have an entry right here and we can still get our one risk for our 1.5 to one risk reward or whatever risk reward you decide to use that's why we utilize multiple time frames let's keep pushing forward now we're in our zone at this point i would drop down to smaller time frames at this exact point and that time frame would be the 15 minute or the 5 minute chart at this point on those time frames i would look for selling pressure does this look like selling pressure well yes it does this is a momentum candle that closes below the previous candle and most of the body of the candle is red another hint that it's a momentum candle is that the bottom wick is tiny if we have a small bottom wick that means at the close of this candles bears were taking over and they didn't allow the bulls to push the candle up anymore just a little story about candles for you but the trade itself here would be on the close of that candle or the open of the next candle we would have an entry we'd have a stop above our zone by a few pips and we would have a target like i said i normally do about a 1.4 to 1 risk reward let's hit play market came up got close to stopping us out but that's why we keep our stop loss above our zone so we have our stop-loss above our zone we didn't get it hit and instead the market pushed down pushed up play with our emotions and then eventually hit targets now i know i've shown you winning examples of course this strategy and no other strategy in the world will always win it's important not to go out here and start trading this right now do me a huge favor trade this on a demo account using what i'm going to tell you next actually i was going to say traded on a demo account for a few weeks let's dive into the timing aspect of this and how you can trade it while having a full-time job so let's go back to the euro dollar trade this is something i've been doing for a few months now and as i've said multiple times in this video i can't stress this enough it has given me outstanding results that's why i want to share it with you so for the past few months i've been looking at my charts between the hours of 6 pm and midnight and between those hours i'm eastern standard time by the way that i live in atlanta so it's eastern standard time between the hours of 6 p.m and 10 p.m there's not a lot of movement in the market but the spreads aren't terrible you can still get away with placing trades with decent spreads so what i do to utilize this is actually place trades during this time and here's the beauty of it for one placing trades during these times between the hours of 6pm and midnight the market's normally not going crazy and if the market's not going crazy it gives you time to actually look through your charts and find the best setups that's reason number one reason number two is that by the morning for me at least whenever i go to sleep i have 3 a.m eastern standard time that's the london session a lot of traffic's coming into the market at that time i have the overlap at 8am so with those two times coming in and bringing a ton of traffic into the market a ton of volatility 90 of the time i'm out of the trade by 10 a.m so it's a way of day trading because you're in and out of the market within 24 hours and it's a way of day trading that you can do while still having a full-time job as i said the spread's not bad between 6 and 12. it gives you time to look for the best setups and you're normally in and out of the market within a matter of 12 to 24 hours so technically classified as a day trade now do me a huge favor do not go out there and start trading this blindly with no risk management and no idea how the strategy actually performs what kind of drawdown you can expect i've tested this strategy for years and i've shown it to you so you don't have to go through the process of developing the strategy but the process you will need to go to at least is back testing the strategy if you're not going to back test it do me a huge favor demo trade this strategy for a few weeks and guess what if you demo trade it for a few weeks and your account goes up fantastic you found a strategy that works for you amazing if you demo trade it for a few weeks and it doesn't work you didn't lose any money and you give yourself time without losing money to learn how to better perform in the markets with this strategy so you understand what i'm saying make sure to at least demo trade this for a few weeks before you start trading it live if you guys are interested in some more advanced training and strategies like this then i've just opened up a brand new case study group we just added some new material to the eap training program so i'm opening up a case study group to get reactions from traders to see if they enjoy the material we just added with this case study group we're doing a pretty heavy discount on the lifetime membership of the eap training program we're allowing about 40 traders in right now if you want to get some more advanced training and you're ready to take your trading to the next level with a full mentor program hosted by yours truly then go ahead and click the link in the description labeled vip eap training program it would be a pleasure to have you aboard if not that's totally fine too just make sure if you enjoyed this content you go and smash that like button leave a comment below for with future video ideas or anything you're struggling with and make sure you subscribe so you're alerted about the free content we come out with each and every week hope you guys have a great weekend have you have a great trading week next week or whatever week it is because you might be watching this in the future which really freaks me out blows my mind but anyway talk soon have a great rest of your day awkward outro see you guys

Channel: The Trading Channel

Views: 500,427

Keywords: day trading, forex trading, day trader, learn to trade, how to trade, forex strategy, stock market, forex price action trading, forex 1 h scalping, forex 1 hour strategy, forex 1 hour scalping system, day trading for beginners, forex trader, how to trade forex, day trading live, day trading setup, forex trading for beginners, day trading forex, forex trading strategies, forex trading explained, forex trading live, forex trading strategies for beginners

Id: k3HrQQszqX4

Length: 17min 57sec (1077 seconds)

Published: Sun Oct 18 2020