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