in this video I'm going to show you
everything that you need to do to set up
your charts to be relatively successful
at trading I'm not going to edit this
video in any way shape or form I'm just
going to look at a naked chart I'm going
to add indicators and I'm going to show
you how to find Trends how to find these
pivot Points how to find those Trend
reversals and why they're happening all
of the stuff so let's get into the
charts and let's see what we got okay so
I've already done the first step and
that first step is always to change your
candle colors from red and green to
something more neutral this is a
psychological effect that red and green
have on people that I want you not to do
while trading so what you want to do is
just right click the chart click on
settings and then go to appearance
now symbol and you will see body borders
and Wicks I like to change them from red
and green to yellow and white because
it's just better it's easier on the eyes
it keeps you less stressed out and I
promise you once you do this for a while
and then you switch to a red and green
like oh wow like you'll see the effect
you'll feel it
the next thing that you're going to want
to do is zoom out to the one hour or the
four hour chart basically you're trying
to find huge pivot Points in the price
and the higher the time frame the more
valid these pivot Points are
so when you're looking at areas like
right here right here all of these
look all the way to the right and see at
what price that happened Banks want to
trade at big round numbers
these are typical they call them
psychological levels Bank levels
whatever so you're going to look at this
Pivot Point right here where the price
came down and reject it up
quite aggressively and then look left
and you'll see that it was an even
number
0.7000 so what I want you to do is take
a horizontal Ray tool which you can find
here in the toolbar I have these all
added as favorites I have a long
position a short position date and price
range a brush a rectangle so I can drop
boxes Fibonacci retracements which I
will get into later trend lines
horizontal lines vertical lines arrows
the cross icon thing this thing the
clicker arrow and then a horizontal Ray
this tool will let you just shoot a line
straight across your chart to the right
from the point where you click it so
let's just put it up at seven thousand
even
and keep going from there you'll see
this point right here was at about
75.50 75 500 look 75550 like nice nice
even round number
so click that area
and then just keep uh just keep going to
the right I want you to move your chart
all the way back like not all the way
back back far enough to where you'll
have relevant price action in that area
so right here
we had another area
just below 7300
I'm gonna click it
right here again another low
click that thing
right here
this area
I mean obviously you want to do the the
absolute bottom right but this area I
want you to draw a box around because
like
price Consolidated pretty heavy in that
area right so just just keep in mind
that this would be for me a no trading
some I mean maybe you can trade the tops
and bottom of this range but
better to stay away from it
um so now we have all of these price
levels right
and then what you can do
is uh draw trend lines
because trend lines make sense
a lot of people get
the wrong impression of trend lines this
really bothers me they're like oh I
because I always say the trend line
should be at a 45 degree angle and
they're like well it depends on the
scale of your chart yeah that's true but
if you get all the candles in the area
and then you double click on where the
price is on the chart on the right hand
side
it'll even it out so that's like the
standard aspect ratio that it should be
at right so I want to draw out my trend
lines
at 45 degree angles
right like you could see them very very
clearly
if I could just
use my brain properly so you can clearly
see we were in a downtrend we broke that
downtrend and then we were in an uptrend
we're currently still in that uptrend
even though Australian dollar US dollar
had a huge
kadunk so
what I'm looking at here
to see if it will break this area
is
I'm going to draw a rectangle
at this Zone
and know that this is a potential
liquidity Zone
which could have maybe brought the price
down here to where it wants to reject
this uptrend and start a new downtrend
but we don't know that yet remember
you want to make trend lines
at a 45 degree angle
it's about 45 degrees that's about 45
degrees cool so that's what we're
looking at from this point if that's the
potential but the only way to know for
sure is to see if this area on the one
hour was a Divergence
and you guys know that I like to use
the RSI
so
adding the relative strength index you
can use any RSI that you want
um
we have an indicator actually let me
show you
we have a new indicator
called any
oscillator any oscillator underlay it's
made by the company that I helped start
the trading floor you can add that onto
your chart and it'll give you eight
oscillators which is awesome so if you
want to use the RSI or the macd at the
same time you can do that so let's just
let's just use that one instead of the
standard RSI go into settings
I want to only include
the RSI
and the macd
it takes a while to load because it's a
pretty dense code so
um
got macd and RSI
so at this point
remember I was talking about this Zone
to see if this was just a liquidity grab
you want to check for a Divergence right
here so what does that mean that means
that
this area
was a high this area was a higher high
what you want to do is look at your
oscillators and see if this High made a
Divergence on here so
sorry I'm just going to use the regular
RSI
because it will be way easier
for the people that uh
are new because I have a lot of new
Traders coming to watch me on this
channel
um so yeah
we had a
High Point right here
at a high point right here so that is
not a Divergence
at all
what you can do is pop it out even
further to a four hour
and get a better idea
now we can see that on the four hour
chart we did have a Divergence
so looking at the high here and the high
here
Divergence 100 percent because price
made a higher high yet RSI
made a lower high
so
now that we've made that Divergence
we've come down to our trend line and
we're dancing on it we don't want to
trade in these zones we want to wait for
price
to break this downtrend
and either reject off of this uptrend
line
sorry break the uptrend
break that reject off of it and create
another
High Point here that's going to be a
lower high which means a break of
structure so we had you know a high a
low a high a low this is Market
structure higher highs and higher lows
so you what you want is for it to stop
making higher highs and start making
lower highs once that happens and that's
it approximately a 45 degree angle you
can start looking at Short positions but
until that happens you must assume that
this price will maintain its upwards
trajectory and keep going on an uptrend
and what are your price Targets in these
areas you guessed it these lines that we
drew up earlier so if it maintains this
and breaks this previous High Point with
no divergences we're looking to trade
these areas so right now Australian
dollar US dollar is not in the trading
area for me
foreign
especially after
NFP
it made this huge you know could dunk
down
so
once you start
figuring out which direction price is
going uptrend downtrend that is the only
time that you can take it down
to a smaller time frame like the five
minute or the 15 minute if you're still
new to trading I would stick to the 15
minute because it's more casual right
it's a lot less stressful candles take a
long time to form
the candle formations themselves mean
more and carry more weight at 15 minutes
than they do on the five minute chart so
already you can see here we had a big
downtrend on the 15.
and then we're starting to break that
downtrend and go in the uptrend so
taking it down to the five minute
you can see a lot more noise
which is why I still suggest you use the
15 minute
but essentially
what you want to do is look for Market
structure breaks of highs breaks of lows
and use support and resistance areas so
right here you can see price came down
shot up this area right here is now a
zone so
we had that Divergence we broke that
support level
then used it as resistance
and now it's coming down so if it
rejects here again
and then breaks that trend line that's
when you can start using it
that's when you can start seeing that
it's going to potentially be a downtrend
the way that you can tell on these
rejections of a support and resistance
level is check the RSI to see if there
was divergences so with this high
and this high you can see the Divergence
it made a higher high and yet on the RSI
made a lower high
so when you're picking which direction
you want to trade because that's the
most important thing is picking the
direction
these are the things that you want to
think about okay and once you've you're
done thinking about all this this is why
trading on a higher time frame is much
better because you get time to analyze
what you're doing so when I hop onto a
chart you know it's Monday or Sunday
night and I want to analyze where the
price is going to go I'll delete
everything off of my charts and get a
clear perspective so I don't have any
biases
which still I have biases but once I've
decided that yeah it's in a downtrend
and until it shows me otherwise I'm
going to be trading this currently it's
in an uptrend on the one hour so I would
still be counting this as an uptrend
um and what you want to do
once you start seeing good
smooth price action I don't I want you
guys to avoid this choppiness right here
see how it's not really showing any
specific Trend I want to show you an
area where you're getting nice even
higher highs and higher lows
like this area
this area right here is showing me a
nice uptrend higher highs higher lows
really smooth really consistent you're
not going to get the perfect zigzag
lines like you see
on all the trading books it just doesn't
exist
but what you can do at these points is
look for
either divergences
or overbought and oversold areas on the
oscillators that you're looking at
so once we broke this Zone
you know we used it as resistance broke
through it and then used it as support
once you get areas like this then you
can start looking for candle formations
like a three-line strike or
uh engulfing doji Morningstar Evening
Star the candle formations that I
explained I'll link those videos at the
end of this one because they're actually
really good candle formations
um
I want to give you all free indicators
um what can we use here ah the three
line strike obviously so
three LS I think you can so yeah three
line strike
um my ttf
and you can see
once we broke through this area you want
to look for the three line strike at
this Zone
so you got one right here
if we took a
long position there
right and because
we're looking at I know I like to do 10
pip stop loss and 20 pip take profit but
when you're that's when you're
getting like an actual pivot point you
know
from a higher high and a higher low not
when you're rejecting a support and
resistance level what you want to do is
look at this support and resistance
level
and avoid being capped out like you'll
see we had a low right here and then it
dipped below that so you know that this
was the liquidity grab off of this Wick
right here so what I want you to do is
put it below this one
that area is going to keep you nice and
safe and then you want a 1 to 1.5 or a
one to two risk to reward anything more
than that is not scalping right and
we're on the five minute time frame here
so this trade
ended in what
two hours which is not bad
um obviously you could have held it more
I know a lot of people like to talk
about trailing stop losses and getting
the most potential out of a move but
dude I've been screwed over so many
times holding a trade for two days that
I just I don't like I don't like it so
you can see the potential if you hold
and you know just maintain Market
structure
but there's specific things like support
and resistance levels checking your
trend lines breaks of those trend lines
those are the things that you want to be
focusing on the main thing I want to get
and portray in this video is
just figure out where your trend is on
the higher time frame the one hour the
four hour find the trend find your
support and resistance levels and then
you don't have to worry about oh I
should I go long or short you know that
if you're in an uptrend you should only
be looking for long opportunities and by
long opportunities
I mean
rejections
off of support and resistance levels
breaks of previous structure
let me take that out to the 15. right so
like we're in an uptrend rejections off
of trend lines breaks of previous highs
you always want to get it on the swing
down and then as it starts swinging up
at these areas there's always something
that happens either the RSI is oversold
or you're getting a hidden uh bullish
Divergence or you're getting a
three-line strike or you're getting an
uh doji or an engulfing candle of any
kind these are the areas that you want
to be looking for so
I know this video is not as structured
as my previous videos but I just want to
give you an idea of
how I see charts right when I get on the
charts what do I do first it's higher
time frame support and resistance find
my trends
and then I can start weaning down into
the smaller time frames because if you
immediately go to the small time frame
and you
remove all of your drawings right and
then you see
this you're like ah well now we're in a
downtrend 100 price is in a downtrend
I'm only looking for shorts and then
once you get into a short it starts
going the opposite way because overall
uptrend okay when you find the trend try
to stick with that as much as you can I
hope you guys enjoyed this video
um
that's yeah that's all I got to say like
subscribe whatever if you want to watch
the videos about the candle formations I
have two videos bearish and bullish you
can start with this one right here and
then that will lead you into the next
one thanks so much for watching and we
will see you in the next one