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Simplified Day Trading on the 1 Minute Chart with Key Market Structure Concepts

Simplified Day Trading on the 1 Minute Chart with Key Market Structure Concepts

I get it I really do we have all been there where the market is going going and it presents some really great behavior and you say this is it I'm going to get in and you press that button and immediately it goes the other way and it stops you out and it should be so frustrating in this video I'm going to show you some very simple ways to master the one minute chart using only price action and Market structure ladies and gentlemen 500 likes on this video and I'm going to start a five part Series in which I start all the way at the very beginning all the way back at I've just learned how to trade I've just learned about trading and I don't even know what trading view is all the way through advanced and professional level trading tactics all for free here on YouTube hit that like button subscribe to the channel you'll enjoy this video you may have heard things like the one minute chart is noisy there's too many candlesticks too much going on and I'm going to show you why those things are simply just not true but first we need to define a few things so that way when I get to actually providing examples you know the definition of a few things and I can already start to introduce you to what you're looking for on the one minute chart so firstly we're going to identify what is a swing level for me when I look at the chart I identify swing levels as if we're in a down move two consecutive candles followed by two candles of pullback so in this instance here you have two candles and then two candles a pullback and this can occur either on the one minute chart the five minute the 15 the one day the one month the one year it really doesn't matter this is my definition of a swing low the same goes for an up move and this would be a swing High with the same exact definition and with identifying swing highs and lows now we need to identify where do we and how do we identify the major and minor swing levels this is an example of a downtrend we have a high we have a low we have a lower high and a lower low Within These swings you're going to notice a series of pullbacks and minor swing levels I will get to that in a few moments once this low is formed I would typically just draw a line all the way across now once that low is broken with definitive closure below that level like in this instance here where we have a solid candle closure below I would then consider the last High to be the new lower high and that is how I identify my major swing levels and a downtrend and if I wanted to identify swing levels in an uptrend I would simply flip this over and identify it the same exact way something to note is that if we get a wick below this Wick and there is no solid candle closure blow I simply do not have a new lower high the high is still at the old high all the way up top and until we get that solid candle closure below everything in the middle is simply consolidation I would like to point out that the last example as well as this one are both on the daily chart and again we have major and minor swing levels in this instance here it is displaying the minor swing levels breaking towards the downside until we break through of course this major swing level which would then put the other major swing level the lower high right here but with the minor swing levels you look for the exact same thing except these minor swing levels can help you to identify a change in Direction at least with the minor Trend back toward a major swing level in this instance here you can see a series of lower lows and lower highs being formed until you get a higher high being formed how did I identify this higher high I use my criteria for what a swing level is and which levels are important based off of we are making lower lows and every time we make a lower low I would then bring my swing High down to the next swing level so lower high lower low once this low is broken with a definitive close below this is no longer the relevant high I would then bring it down to the next lower high and that process continues until you get a higher high here you would look for higher high and then you would look for a higher low to be formed in the form of three pushes back down into the current low this is essentially a short squeeze setup just on a smaller time frame and of course if I were to flip this over it would simply just be a long squeeze how does this help if we have a series of lower loads and lower highs and we get a far enough distance away from the last major swing level we could be 75 Pips of drop 100 Pips of drop sometimes 300 Pips of drop from that last major swing level and then we could get a break of structure on a minor swing level this might let us know that we could be about to move back up to retest a major swing level and if we have room to get there we can formulate trading ideas and trading setups around those ideas in my last example I had said that eventually you're going to get a break in Market structure you're making lower lows and lower highs eventually you will get a higher high that is what we consider a break in structure or break of Market structure a break-in structure is the first sign that the market could be about to change directions in that case you're just simply looking for three pushes back down or up into the high or the low that first break to one side or the other is what we also consider the first Mouse the first time people are attempting to trade a breakout and are now stuck in the market and the market is ruthless and therefore they are going to then go back down and stop those people out or at least scare them out of their positions by doing this they are also now getting people to start taking trades in the wrong direction back down into the low or back up into the high after they've decided that they are going to now change directions so that is why whenever the market starts to shift and you decided to take that position they immediately go back and they stop you out you could have been the first Mouse in those instances the difference between a break-in structure and break up structure is a break of structure is simply every time a level is broken so if we're in a downtrend like I showed you on those prior examples every time they made a new lower low that would be considered a break of structure and we are of the understanding that after they break structure they need to pull back in three pushes and this is our way of identifying a way to enter in on Trends how to enter in on pullbacks after a move has already began so that we can benefit from the rest of the trend another really great example of Market structure we have a high we have a low we do not know that this is the lower high until this low is broken with definitive closure candle closure below that level once that happens we can then take the level in which we mark this high and bring it down and Mark our now lower high we've identified the downtrend this pen down here is now the low and this is now the high I mark off the pin from the pin across and everything in the middle between that low and this High becomes consolidation all of these little itty bitty swings in here become irrelevant swings in consolidation this is how you keep yourself from getting stuck in the market this is the first attempt the break-in structure the first time the market has made a higher high and shown that it may be willing to change directions at this point here we have the first Mouse in the market people are now going long the market now has to go with the rate checklist of stopping out the Longs and convincing people that we are now going to continue the short Trend once they stop out belongs and convince everybody in three pushes that the market will continue short then and only then will it continue its intended direction to alongside we also have breaks of structure every time a swing level is broken in a trend that is considered a break of structure notice the swing low as we just saw and the swing high that is not considered a swing High until that low is broken and when it is we have our break of structure this is a way for us to identify where breakout Traders are in the market and wait patiently for three pushes back counter Trend against the trend so that we can hop on the current trend for low-hanging fruit trades or just Trend continuation trades back down towards the low or the high if we were in an uptrend notice that once we break that low breakout Traders are in the market and eighty percent of breakouts fail the market is ruthless and anytime that there is a breakout of a level typically they're going to punish people in any way that they can so they're going to stop hunting back up into the current High Step dropping out anybody who traded the breakout or who maybe moved their stop down too aggressively they're going to stop them out and then continue or resume that Trend back down towards the low if you are capable of identifying major Trends in the market if we were in a large term downtrend and you can identify where those swing levels are and then you can identify the minor swing levels for example let's say that this high is about 75 to maybe 200 Pips away that gives us plenty of space to get back up towards that high to formulate a trading idea if we were willing to trade counter trend in this instance you can see a major swing level up top and a series of minor swings once we break structure we continue breaking structure to the downside and we formulate these lower highs and we have a break in structure notice the lower low and then a higher high you simply look for three pushes back down against the current Trend and when I say the current Trend I am referring to the minor swing Trend in which we are in a downtrend because after every leg there is going to generally or typically be a retracement of some kind so if you have lots of space to go back up you can formulate trading ideas around this idea one push the second push and the third in an engulfment this could indicate that the miners trend is about to switch and you depending on where you're at within the session in the time of day may be able to benefit from that movement it's great that you can identify swing levels on higher time frames just as the 15 minute because that time frame is so important with this style of trading but how does this help you on the one minute chart if you can identify swing levels on the one minute chart and you only have two levels marked off that are important on that one minute chart all of that noise in the middle becomes irrelevant and you are simply waiting for a behavior if you are in an up move on the one minute chart and you are looking to take a short you know which levels are important and which need to break and you have a process for waiting and being patient for three pushes back up after that break in structure to the downside all of that noise goes away and you can see the market with Clarity an understanding of both the 15 minute and the One Minute Market structure is going to provide you with so much more clarity because this is how I formulate all of my trading ideas everything is related or revolving around the current market structure and where the high and the low is on those charts look at this 15 minute chart here on the left it's separated right here in the in the middle everything over here is on the one minute and can be ignored for now notice the high the low the high and then we get a lower low this lower low on the 15-minute chart represents a break in Market structure we had a higher low and it has now been broken to the downside letting me know Cameron go down to the one minute chart so once I have that break in Market structure I need the one minute chart to react I need it to start pushing back up into the high and giving me some kind of pattern letting me know that that chart could be about to change directions I need this same exact Behavior to happen on the onenet chart so once I go over to the one minute chart and we see this consolidation with a higher high which validates below and then we get a lower low the same behavior that happens over here on the 15 minute chart I then need to happen on the one minute chart in this upswing on the one minute chart you're going to see three pushes it could look like this where there's a series of upswings and then on the one minute chart we now have a break and structure to the downside and after that breaking structure on the one minute chart similarly to the 15 you then need three Min or three pushes back up into the high so we have our braking structure on the one minute chart and we still need to see three pushes a chart pattern and an engulfment on the one minute chart that is my entry every single time to simplify that trading process that I just mentioned in the last slide please take a look at this download this slideshow the link is in the description below this is going to significantly help you and give you almost a bit of a checklist once you've identified a few things step one I'm going to identify my overall trading setup that could be for example day two or three trend day three reversals I'm referring to the day three of the three day cycle first red day or first Green Day so maybe I have a single day of some kind or an inside day step two I need Market to present in one of the only two ways that I need to see the market present that is either a short or long squeeze or a parabolic trend trade those are the only two Market presentations that I need to see and if you don't know what those are I have slideshows and videos on both of those topics that go in depth somewhere in my channel so please go back and watch those step three Market structure on the 15 minute time frame now of course there are counter Trend trades in which the 15-minute chart has not broken structure and that's a little bit more of an advanced Topic in which we're not going to get into for this video Mark a structure on the 15-minute chart being aware is the market currently still in the process of going up or did we just break structure to the downside and we've started the process of going down or vice versa obviously if we're in a downtrend did we break to the upside and start the process of going back up step four three pushes I need to see three pushes on the 15-minute chart this could take anywhere between 15 and 45 minutes on the 15 minute chart but as soon as I get that breaking structure on the 15 minute chart I'm going down to the one minute to observe the behavior on the one minute chart and watching and seeing the market structure on that one minute chart and waiting for a break to the other side if there's been a break of structure the first Mouse is in the market I need to go down to the one minute and wait for those three pushes on the 15 minute basically this is a pump and dump or a dump and pump this after the break-in structure and they start going back up or they break to the upside and they start going back down you're either looking for a pump and dump or a dump and pump this was a recent trade that I just took this last week based off of 15-minute Market structure this was US dollar Japanese Yen on the 15-minute chart and we had a first red day that I believe to be invalid due to the higher high that was formed what was not invalid however was this breakout level not having been retested so this gave me a lot of space from the high of the current day back down to that breakout level in which I felt I could trade back down to to make a profitable trade I just needed Market structure to confirm my thesis notice how this Market has come out of consolidation and pushed up once twice and a third time every time we broke the high with definitive closure above I would move my highs up once we broke this High I moved my low back up to this higher low this was a break-in structure we had solid closure below all I need is three pushes back up and an engulfment in my timing window on the one minute chart with a chart pattern for a valid trade notice the one two three in an engulfman and a pin hammer for a great trade on the 15-minute chart however I was down on the one minute immediately after this breaking structure and watching the behavior on the one minute to try and catch this entry this is the exact same chart US dollar Japanese Yen from the last example except I have brought it down to the one minute chart so you can see exactly where the entry was in that right shoulder after the breaking structure on the 15-minute chart upswing right here is this upswing right here on the 15 minute chart notice the higher highs and higher lows going up we then have a higher high form which brings our higher low to this point here they've broken structure to the downside and there was news at 8 30. they've broken down even further after the news giving us our one two three back up into the high up down up down my Q to enter the market this is a first bounce trade after the news but it's the same concept as if you're entering in on any other trade you're just entering in after the news in a safe manner whether you can identify them or not the market is consistently moving in threes that could be three levels three pushes three candles the market is always moving in threes and this is a great way for you to identify where the market could be about to exhaust itself and flip around and go the other way I'm going to show you some very simple tools some very easy Concepts to understand and put some rules to them so that way you can identify them yourselves going forward in your trading earlier I mentioned that anytime the market goes and starts trading between a high and a low it's in consolidation and all those swings on the inside I consider irrelevant so in this instance we do have a a high and a low they've not broken that low and not confirmed necessarily that high but we're in consolidation at this point once they come out of consolidation you can begin to look for the three push Behavior they come out of consolidation I mark off the high everything on the inside would be considered consolidation once they come out of consolidation again and they form a second High I draw my line and once they leave that consolidation again I know that I may have just had my third push and I can look for a one two three engulfment style of behavior of course in combination with Market structure this is a phenomenal tool to use to really get your trading going in the right direction after this third push notice how these higher highs and higher lows they break to the downside we've already had three pushes out of consolidation we are currently in a downtrend notice this high up here all we've done now is three pushes back up into the high came out in a one two three into level three broke structure of these minor swing lows pulled back and went back down to test the low I may have got a little carried away with the highlighter in the all caps on this slide but please bear with me three pushes is so important this can go from the monthly time frame all the way down to the one second time frame this behavior is still relevant the markets are fractal and it applies on every time frame at times you could be watching a one minute candle bobbing up and down and notice that it hits the high or the low of that candle three times three pushes is everywhere even if you can't see it you need to be able to identify consolidation and the relevant highs and lows on these lower time frames and on the higher time frames but since we're talking about the one minute chart we're going to narrow it in to the one minute chart so this is the US dollar Japanese Yen on a 15 minute chart and you need to become a professional at dissecting and knowing which parts of the chart Anatomy to look at notice the higher high the lower low the lower high the lower low and as we're going down I am bringing these swing levels down so we broke lower we made a lower low I would then bring a line and put it across right here as my lower high until that level is broken we are in a downtrend until this level here is broken we are simply in consolidation we break lower out of consolidation confirming a lower high and then we make a higher high the short squeeze setup as well as my explanation of Market structure breaks in structure and whatnot would then say this is the first Mouse and we can look for three pushes back into the low but how in the world do you look for those three pushes well there's going to be a high and a low after this break to the upside and it's going to identify some kind of consolidation and at some point they will come out of that consolidation and three pushes we have our consolidation identified between a high and a low they come out and the first push put my line across notice how they keep breaking but not closing below that level this is a really great manipulation tactic within the market to be able to identify they are working the low and they eventually break down below it I extend my line This is the first push and now we've gone down and made our second push just ignoring the swing levels let's take a look now we have our third push okay so this is how I identify three pushes is these levels and once they break lower I identify the next level and although we are mastering the one minute charts I thought I would just include this in since we're talking about the topic this is how you identify large moves in the weekly templates the opening range on Monday and its simplest understanding is a consolidation once Monday closes and there's a high and there's a low on Monday that high and that low becomes consolidation remember my definition of consolidation is the swings all within a high and a low so with that understanding once they move out of consolidation and you start getting pushes out of consolidation and you start getting levels out of that consolidation your weekly template could be setting up for one push two push three push out of consolidation or in the opposite direction one push two push three push to the upside then it is your job as the trader to watch and identify Market structure to confirm your thesis or your idea based on those three pushes out of the opening range out of consolidation within the weekly template now the next slide is a bit Advanced but I'm confident with our previous talks about all the relevant highs and the relevant lows what is a break-in structure what is a break of structure it's going to be very easy for you to understand with the guidance of my annotations of course I'm also confident that now you're aware that the one minute chart is not noisy you simply just need to know which highs and lows to look for and exactly what you are waiting for on that lower time frame so that you can form your trading ideas we've also gone over three pushes each Candlestick on that one minute chart is telling you a story and you simply just need to listen there's a lot of annotations there's a lot of colors I'm going to walk you through it step by step I'm going to point out a bunch of things you can rewind as many times as you need to but let's go through this dissection of the one minute chart first I would like to start over here and point out that this red line at the very bottom of your screen is the previous days low on the 15 minute chart that is the lowest point from the previous day in which the market traveled in the current day though we have price suspended above that level I like to consider these like little awkward places where the market tends to come back to and it could happen today it could happen tomorrow but if price action is confirming on the current day that's a thesis or an idea that I could build based off of this knowledge I consider these also as a retail bottom look at all of this support we've got all these different hits to the low of the day that level must hold in quotations right so we've identified a consolidation we've got a block of sideways price movement we've come out of that consolidation in a push I identify my high we have a second push I identify my high again once they do a swing right there's a swing level they pull back once they come out of consolidation again I know that we might have the third drive into the high we are now into level three and I have to look for a three bar three push variation into level three usually this is considered a climax move this is a psychological Behavior by the market because the market is already gone their first two pushes so of course they're going to get people to buy or sell in other instances at the worst possible place notice the candle is getting much larger at the top and then you have a one group of candles pause two groups of candles pause third group of candles into the high climax candle and it doesn't go any higher that is in level three that is level three Behavior the third push out of consolidation kind of behavior then we have our level and starts the process over again first push out of consolidation second push second drive out of consolidation third drive out of consolidation and identifying swing lows and swing highs we have that fall through that little space and a break in structure a break-in structure higher high right here and a one two three back into the low for the move the rest of the way if I were to show you every single price consideration or Market consideration that I use every single day or that run through my brain it would take me at least six hours but that's probably what I'm going to do in this next five part series that I'm going to put here on YouTube for free starting at the most beginner beginner that you could be I don't even know what trading view is all the way through the most advanced style of trading ladies and gentlemen I hope you enjoyed watching this video as much as I did making it please do me a favor hit that like button subscribe to the channel if you haven't already you have a wonderful day thank you

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