Crypto VideosTrading StrategiesTutorials and Guides

Advanced Price Action: Unveiling the Ultimate 1-Hour Day Trading Strategy

Smart Risk
- LUD:
38
31
0

Title: A Comprehensive Guide to a Successful Rules-Based Day Trading Strategy

Introduction:
In this article, we will break down a full rules-based day trading strategy that works well in the Forex, crypto, and stock markets. This strategy is ideal for beginners or struggling traders who are seeking an edge in the market and aiming for consistent income. By combining concepts of market structure, pullbacks, and advanced candlestick entry setups, this price action trading strategy offers a powerful approach to capturing impulsive moves in highly volatile trending markets.

Table of Contents:
1. Identifying Market Direction
2. Waiting for a Pullback
3. Entry Reasons
4. Analyzing Market Structure
5. Backtesting Your Trading Setup
6. Conclusion

1. Identifying Market Direction:
To trade with the controlling side of the market, we use a simple concept of the exponential moving average (EMA). By applying the 50 EMA on the chart, we wait for the price to break it to one side and create a new high or low. This helps us identify whether the market is bullish or bearish, allowing us to trade in the direction of the dominant trend.

2. Waiting for a Pullback:
A valid pullback is essential for optimizing our entry and catching maximum profits. We wait for the price to print at least two opposite-colored candles after an impulse, indicating a temporary correction phase. This pullback confirms the continuation of the trend and provides an opportunity to enter at a better price.

3. Entry Reasons:
To enter the trade, we use two advanced engulfing candlestick patterns as our entry signals. The first pattern requires the green candle’s body to be bigger than the red candle, with the green candle having a lower low than the previous candle. This indicates a bullish reversal and serves as our entry for the pullback trading strategy. The second pattern is similar, but the green candle is not a swing low. However, if the red candle has created a lower low than the previous candle, it still qualifies as an entry reason.

4. Analyzing Market Structure:
Before placing a trade, it is crucial to consider higher time frame key levels and reversal chart patterns. Reversal patterns, such as double tops, double bottoms, and fake outs, signal a potential change in the ongoing trend. By analyzing these factors, we can avoid potential losing trades and identify great risk-to-reward ratios.

5. Backtesting Your Trading Setup:
Backtesting is the foundation of a trading strategy and helps obtain performance results and build confidence. When backtesting, it is important to follow these steps:
– Backtest from left to right, going forward candle by candle.
– Take trades as you would with real money.
– Stick to all the rules and avoid changing anything.
– Test with market replay if available to simulate real market conditions.
– Obtain realistic results by adhering to your risk management plan.

6. Conclusion:
By following a comprehensive rules-based day trading strategy, traders can gain an edge in the market and achieve consistent income. The combination of market structure analysis, pullbacks, and advanced candlestick patterns provides a powerful approach to capturing impulsive moves in volatile trending markets. Backtesting is crucial to fine-tuning the strategy and building confidence. Remember to always have a proper risk management plan to stay in the game.

FAQs:
1. What markets does this strategy work for?
– This strategy works well in the Forex, crypto, and stock markets. It is not limited to any specific market and can be applied to various time frames.

2. How do I identify the market direction?
– Use the exponential moving average (EMA) to identify whether the market is bullish or bearish. Wait for the price to break the 50 EMA and create a new high or low.

3. What is a valid pullback?
– A valid pullback consists of at least two opposite-colored candles after an impulse. This indicates a temporary correction phase before the continuation of the trend.

4. How do I enter a trade?
– Use advanced engulfing candlestick patterns as entry signals. Look for specific criteria, such as the size of the green candle’s body and the creation of swing lows.

5. How important is backtesting?
– Backtesting is crucial for obtaining performance results and building confidence in your trading setup. It helps simulate real market conditions and fine-tune your strategy.

6. What should I consider when analyzing market structure?
– Pay attention to higher time frame key levels and reversal chart patterns. These factors can provide valuable insights into potential trend changes and help you avoid losing trades.

Conclusion:
By following a comprehensive rules-based day trading strategy that combines market structure analysis, pullbacks, and advanced candlestick patterns, traders can gain an edge in the Forex, crypto, and stock markets. Backtesting is essential for fine-tuning the strategy and building confidence. By adhering to the rules and maintaining a proper risk management plan, traders can achieve consistent income and profitability.

Tags advanced crypto trading strategiescryptoday tradingDAY.Forexmake money onlineoptionspriceprice actionprice action tradingStocksStrategytradingUltimateUnveiling
Previous Video
Market Sentiment Analysis for Event Driven Trading | Stock Market Sentiment Indicator – uTrade algos

Market Sentiment Analysis for Event Driven Trading | Stock Market Sentiment Indicator – uTrade algos

Next Video
XRP Surges to ! Crypto Expert Confirms!

XRP Surges to $89! Crypto Expert Confirms!

Smart Risk

Related videos

38 Comments

  6. Thanks for this video, I think although more involve than the 3 bar play reversal strategy, this I found it easier to use. I wonder if there is a bot that uses this strategy and that you can suggest? Otherwise, patience is key the entries opportunities are not abundant.

  11. Hello SMART RISK. this video was 'loaded' with massive amounts of useful information.
    Strategies that could be implemented immediately.
    Thanks for sharing this information with me.
    This video has exponentially expanded my understanding of Trend bias and how to spot valid trade setups. 123

  12. Nice content…. but @14:32 you mention another entry but that's not a bullish engulfing pattern because the L of the 2nd candlestick is not <= to the L of prev candlestick. However you entered anyway? Am I missing something or did you break a rule that you just shared?

  13. I appreciate how inclusive your content is for all investors. No matter the age. the financial situation, or the financial knowledge. everyone can find a piece of information that will help them or provide food for thought. Good
    job

  21. Hi! first of all many thanks for your videos, drammatically usefull for me that is only a pre beginner. I'm trining to follow your instructions and may be one day I will be a little trader!
    So for now I have a question, about your pull-back strategy: supply or demand zone, there is a rule to follow to have a valid zone about of numbers of pips? Is the same if i have a valid zone but it's volume is 10 pips or 40 pips, because of this i have a risk ratio 1:2 and the set up is very different between them, and is different to have a creoss that have to move to reach the targhet if its is 20 pips or 80 pips.
    I'm sorry for my english, I hope that you understand my enough! waiting for your answer
    Kind regards

  24. I think it is more likely for BTC, ETH, to retest the resistance to the upside and then move lower. But as always, things change on a daily basis and all we can do is to trade responsibly and keep track of the markets and re-evaluate our strategies frequently. I want to thank you Victoria Quinn. For being my source of crypto education, As I am comfortably making 9.5 BTC.

  27. Tesla stock dipped severally , resulting to about 23% drop in the shares value this month. I seriously need suggestions on how to diversify my $400k portfolio made up of volatile TSLA.

  28. I put this into play on the H1 and M5. Gained 4% yesterday. I love this strategy. I appreciate y'all making this so simple to understand. On my way to being 100k funded by December!

  29. *Key Takeaways:*

    – 07:34: https://www.youtube.com/watch?v=ksCYTqjoiyA 🕯 The second trading model requires the pullback to retrace all the way down to the 50 EMA and be at least two candles.

    – 08:01: https://www.youtube.com/watch?v=ksCYTqjoiyA 🛡 After getting the pullback, place the trade based on the engulfing candlestick pattern previously discussed.

    – 08:44: https://www.youtube.com/watch?v=ksCYTqjoiyA 📊 This trading strategy is a trend continuation setup, so be aware of reversal signals.

    – 09:14: https://www.youtube.com/watch?v=ksCYTqjoiyA 💰 🎯 Only enter the market if you have enough space before reaching the next level in front of the price.

    – 14:56: https://www.youtube.com/watch?v=ksCYTqjoiyA 🛡 Always have a proper risk management plan to stay in the game.

  30. I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.

  32. I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN…I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED… CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?

  35. I began my investment journey at the age of 38, primary through hard work and dedication. now at the age of 42,I'm thrilled to share that my passive income exceeded $100k in a single month for the first time.this success reinforces the important of the advices mentioned earlier. It is not about achieving quick wealth but rather ensuring long term financial prosperity.

Comments are closed.

Top