Summary
Highlights
The video introduces a simple, reliable trading strategy used daily for consistent profits. The presenter shares his personal trading results, showing over $65,000 in profit over the past month. The goal is to teach viewers how to achieve consistent profits using this proven strategy within the first two hours of market open. The strategy is repeatable, mechanical, doesn't require daily bias or fancy indicators, and sets up every day, removing guesswork from trading.
The strategy revolves around trading ranges, specifically the 'opening range' which is defined by the high and low of the first candle of a new market session. This opening range holds significant liquidity. The preferred session for this strategy is the New York session, opening at 9:30 AM Eastern Standard Time, due to its high volatility and liquidity, although other sessions like London and Asia can also be used.
Step 1: Mark out the high and low of the first 15-minute candle of the New York session. This forms the 15-minute opening range, as it provides the highest probability. Step 2: Wait for a 5-minute candle to close above or below this 15-minute range. This confirms a potential breakout. Step 3: Go to the 1-minute time frame to look for entries for continuation.
There are three primary entry models for this strategy: 1) Breakout (Opening Range Break): Enter long or short after a strong 5-minute candle closes above/below the opening range, placing a stop at the break below/above the second candle forming the gap. 2) Retest: Preferred model, waiting for price to break the opening range, then retest it before continuing in the breakout direction. 3) Reversal: If the opening range fails and price breaks back, look for a retest to push in the opposite direction. This model is useful in ranging markets.
In the first example on Tesla, the 15-minute opening range is marked. After a 5-minute candle closes above the range, indicating a bullish move, the trader switches to the 1-minute chart. A 'bullish gap' (displacement) suggests strong upward continuation. The entry is a breakout with a fixed 1:2 risk-reward, as the strong bullish momentum meant no retest occurred.
On Nvidia, the 15-minute opening range is established. A 5-minute candle closes strongly above the range. On the 1-minute chart, since there was no bullish gap (displacement), the retest entry model is used. The price retests the 15-minute range, holds, and then continues upwards, confirming the retest entry for a fixed 1:2 risk-reward.
For QQQ, the 15-minute opening range is identified. Price moves from the top to the bottom of the range. Initially, a continuation to the downside is anticipated, but buyers step in, pushing the price back up. This indicates a ranging market with mean reversion. A reversal setup is then sought based on broken structure and a retest of a key level (order block) for a push back towards the high of the day.