So everybody here knows that I like to trade big ass candles.
So, in this video, I'm going to explain to you.
Why that is, and why you should be focusing on these candles as your
entries for the tightest possible.
Stop lost.
And the least amount of draw down for every single one of your trades.
Welcome back to the channel, everybody.
My name is already and this is the moving average.
I shall.
We discuss everything day trading.
Keep you profitable on a consistent basis.
So I'm assuming that you guys have seen a majority of the content that
I made.
On this channel, we look at rejections off of moving averages.
We look at rejections off of support and resistance levels and we look
at rejections off of trendlines.
If you can get any one of those rejections to line up with each other,
like a support and resistance level, as well as a trendline and a
moving average.
That is going to be your best bet for an entry.
You also know that my favorite way of trading is using a three-line
strike.
Say, for example, if the price is going down then, retrace his up a
bit and we get three, bullish candles followed by a big fat, rejection
candle, that's going to be my entry point.
So today's video I'm going to be looking at us 30 and what happened
last night and how I would have traded it had.
I not been on Daddy time.
Okay.
So look
At the chart right now, this is us30 on a 15-minute time frame.
You can see as the price was hitting these moving averages and
rejecting off of it.
It continue this downtrend.
We were in an extremely strong downtrend for over a week and recently,
we've been climbing back up.
Now, you guys know my trading strategy if we are above the 200.
Moving average were looking for long positions and for below the 200
we are looking for short positions.
Now this is always a risky part of it.
When the price does break above after a strong downtrend, you are
looking for a retest of that 200 before it really continues up.
And does a full-on trend, reversal your safest bet.
When trading big ass candles is these things that are rejecting off of
moving averages, you can see the difference between a normal size
candle and a big ass candle.
The big ass candles are really really powerful.
They are momentum-shifting moves, not
Only did you get a small three-line strike right here but this big
momentum pushdown breaking this previous low that it had just made is
significant in of itself and you can see what happen to the price.
After that big momentum of it, just started to Decay and go all the
way down.
What I want you guys to.
Really keep in mind though is to avoid these big ass candles.
These big candles are counter-trend traits when the price is going
this strong down towards you.
Do not take these as by opportunities.
You primarily want to focus on the big candles going in the direction
of the trend.
If you do however, really need to counter-trend trade, I want you guys
to draw a trend line on back current Trend once the price action has
broken that Trend and then you get a big ass candle, that is an okay
entry for scalping in between moving averages, using my scalping
strategy but what I'd really like
Focus on in this video is all of the chatter that happened in the
Discord group.
Last night, we have multiple Channel setup for indices for 4, x 4
crypto, and the industry Channel last night was going absolutely
crazy.
So I needed to make this video because of that chat.
As you can see here we have three moving averages up there all smooth.
Moving averages.
There are part of the free indicator that we created for this Channel.
And for our Discord group, it's the 21, the 50 and the 200.
Now you can clearly see this trend line was easily broken with these
huge momentum candles at that point, you're actually looking for the
price to respect any one of these moving averages and because that
momentum shift was so strong, it did not respect them, it just kept
breaking through them.
You really don't want to focus on getting into early because all the
moving averages are still going up.
You want to wait for these moving averages to start arcing once they
start barking.
That's when the
Momentum starts to lose and shift to the downside, but again, because
we are still in an uptrend meaning that we are above the 200.
Moving average.
You don't want to make your take profit lower than that, 200.
Moving average, even if its previous support and resistance levels.
So I kept seeing these big fat momentum candles to the downside, then
I started to see the moving averages begin to Arc.
I figured this was the last rejection that we would have on the 200.
And this is about the point where I started watching us-30 and seeing
what it was doing for me, that was 6:30 p.m.
as the price came back up.
I actually had an alert set right here to see what would happen if it
crossed the 50.
Again the reason I did this is because we didn't touch the 200 and I
was like I think we're going to try and test it again.
So sure enough, the price went up, my alert was hit and then I watch
this one candle before armed in 15 minutes and this is a perfect
example.
Full of a three-line strike, we are in a short-term downtrend.
We came up to trap some Traders and then got this big fat bearish,
engulfing candle, while the moving averages, are starting to slow
down, and I knew that it would come to this price right here.
So had you just waited for this three-line strike to form gun in and
then had your entry set at the close of that candle with a stop loss,
literally cents above the previous high, right?
They're targeting the 200.
Moving average.
In 15 minutes, you could have had a 52-point move on US, 30.
And depending on your lot size, that is a massive amount of money.
For example, on my broker contract sizes are 100.
So this would have been a $52 profit will trade on a 01 and on a point
107 $520.
And on a one lot trade, it would have been $5,200 in 15 minutes just
from waiting for a big ass candle.
Rejection off of a moving average.
This is one of the safer ways to bet against the current trend is
waiting for those moving averages to swoop.
Now, what I'd like to do is show you the rest of this indicator to
show you how it will actually help you identify these three lines
strikes and these big engulfing candles right.
Now, I have most of the settings turned off on this indicator.
Just showing you the three basic moving averages that I like to use
the 21, the 50 and the 200.
But when I go into the settings and turn on the three lines strike
indicator as well as the big ass candles in Decatur, you can now see
these little arrows above each, one of these candles with the simple
engulfing candle indication you just get a singular Arrow, meaning
that this candle is bigger and engulf the entire previous candle.
Now with a three-line strike, which is a more significant indication
of the move it waits for three concurrent candles and then an opposite
engulfing candle.
That's when you get a double arrow and it says
3s bear, whether it's bearish or bullish.
So, at this point, you actually could have used this one, is an entry
because the moving averages were starting to slow down, I would have
been hesitant, however, because that stopped right at a moving
average, where is this one?
The moving averages, kept sloping down, we had just barely missed 200.
Moving average and I had a feeling that most people would have their
stop losses on a long position.
Just below that candle and sure enough, the market pushdown extremely
hard with these two, massive engulfing candles, a three-line strike
off of a moving average to test and get back down to that 200 hitting
everybody is way too tight stop-loss right here.
Now I know a few of you guys were actually targeting a previous level
of support and resistance, and I want to show you that really quickly.
If we take this out, to the hourly and actually draw our support and
resistance lines on here.
You could see, we had a rejection, hear a rejection here.
So these are
Is were very crucial cell.
Once we had broken that previous trended, the price started to come
down and this was a lot of people take profit level but that is why I
really like to keep my moving averages up on the screen to see exactly
where that price is rejecting.
Whether it's actually going to go to a level of support and resistance
or it's going to reject off of a moving average.
And you can see we are starting to break the trend.
Moving up towards this 200.
On the one hour chart and jumping back onto the 15.
The reason it didn't get back down to this level of previous support
is because it was boosted up by the 200.
Moving average.
This is why having the knowledge of support and resistance levels is
extremely important to get the direction that you want to enter in
that using the moving averages.
And these indicators for 3 Lines, strike or and engulfing candle, it's
going to help you scalp better.
It's going to help you get better entries, it's going to give you more
Consular.
To know that your entry was correct and keep your stop-loss tighter
than you normally would above previous highs.
When you're doing this right you can keep your stop loss at the end of
that candle.
So like I mentioned earlier, the indicator that I'm using is free.
It was created by somebody in our Discord group and we are offering it
to everybody for free.
The links for this indicator on tradingview are in the description.
No membership, no nothing.
Just take them, use them and be successful at trading.
I don't want your money.
You watching.
These videos is enough for me and if you would like a full breakdown
of how this indicator works, in the other things that come along with
it, check out this video right here and if you guys got some value out
of this video on 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.
I'm going to do a wrap on the tonight was ladies night.
I would have stopped and swap.
My balls with the baby wipes in the van.
Hold your sorry, little life in my hand.
Watch me toss it in the sky and swing, right?
For the Stan battling is like trying to ride your bike in the sand.