TLDR;
This video outlines a trading model the speaker learned from Dax, focusing on high timeframe bias and how to identify A+ setups for both sell and buy scenarios. The model uses Fibonacci tools to identify key levels and liquidity pools, and the speaker provides several examples on different currency pairs to illustrate the model in action. The video also teases a follow-up on refining entries on lower timeframes.
- Introduces a trading model learned from Dax, a reputable trader.
- Focuses on identifying high probability setups using Fibonacci tools and liquidity analysis.
- Provides examples of both sell and buy setups on various currency pairs.
- Mentions a future video on refining entries using lower timeframes.
Introduction [0:01]
The speaker starts by mentioning that it has been a while since they last posted and they intend to share some educational content. They plan to create two videos: one on high timeframe bias and another on how to find an edge in lower timeframes. They are currently out having dinner but will later transition to the charts to explain the concepts.
The Trading Model [1:54]
The speaker explains that the trading model they are about to share was learned from Dax, a well-regarded trader. They initially struggled with execution despite being able to read charts, but Dax's approach, particularly his use of Fibonacci tools, provided the missing edge. The model involves marking the high and low points, and if the internal range liquidity isn't within or above the 50% range of the Fibonacci tool, Dax wouldn't consider it an A+ setup.
Sell Setup Explained [4:29]
The speaker describes a sell setup, which starts with identifying a high that engineers a low. After the low is formed, a subsequent high is created, ideally sweeping previous highs. This high then becomes a protected high. The market then displaces downwards, breaking the previous low, resulting in a break of market structure. The speaker looks for inducement within the range of the previous high and low, anticipating the market to tap into an order block or Point of Interest (POI), which is the last up close candle before the down move. The entry is placed at this POI, with a stop loss slightly above the protected high and a take profit at the sell-side liquidity.
Fibonacci Tool Application [9:41]
The speaker details how to use the Fibonacci tool in this setup. To fully utilise the setup, one needs to mark from the initial high to the low. The internal range liquidity should be within or above the 50% level for it to be considered a valid sell setup.
Example 1: GBP/JPY [10:25]
The speaker presents an example on the GBP/JPY 4-hour timeframe chart. They encourage viewers to pause the video and try to identify the setup based on the model discussed. The speaker then walks through the setup, identifying the previous high, the sweep of that high, and the subsequent break in market structure. The internal range liquidity is above the 50% range, making it a valid sell setup. The point of interest is marked, and the trade is executed with a stop loss above the high and a take profit at the sell-side liquidity.
Additional Tip for High Probability Setups [14:31]
The speaker shares an additional tip for identifying high-probability setups. In a bearish market, after a low is formed followed by a high, and then another lower low, it's preferable for the market to sweep the high before dropping. This sweep takes out the liquidity before the sell-off.
Example 2: GBP/NZD (Buy Setup) [15:56]
The speaker illustrates a buy setup on GBP/NZD. The process is similar but inverted. The low is swept, leading to a change in market structure. The internal range liquidity is below the 50% level, confirming the buy setup. The point of interest is identified, and the trade is entered with a stop loss below the low and a take profit at the buy-side liquidity.
Trade Setups for the Following Week [19:00]
The speaker shares a few trade setups they are considering for the upcoming week and mentions they will post these setups on their Telegram channel, with a link in the description. Examples include AUD/USD, K JPY, Euro AUD and NZD/USD.
Outro and Teaser for Next Video [22:12]
The speaker concludes by mentioning that the next video will cover how to refine entries on lower timeframes. They trade by looking at the 4-hour timeframe for the model and then refine their entry on the 5-minute or 1-minute timeframe, waiting for a valid shift in structure during their session window (New York or London). They aim for minimal stop loss and high risk-reward ratios, taking partial profits at 3R and letting the rest run, typically for 9-12 hours.