Summary
Highlights
This simple setup involves identifying and marking untested highs (levels not yet touched by price). Once price approaches an untested high, the trader drops to the 5-minute (and sometimes 1-minute) time frame to observe how price reacts. A struggle to break through the level, with wicks touching but no meaningful candle closures above, indicates a strong rejection. An example demonstrates a successful trade with a 1:4 risk-to-reward ratio, making $14,000 in 30 minutes, highlighting the importance of confirmation at the level.
This is the opposite of the previous setup, focusing on longs from an untested low. The presenter illustrates this with a live market replay. When price approaches an untested low, the trader looks for lower time frame confirmation of a bounce. Stronger lows are generally those from further back in time (e.g., a Monday low is stronger than a Tuesday low). An example shows how a level that was disrespected was quickly abandoned in favor of a stronger, older low that produced an immediate and profitable bounce. The key is identifying the strength or weakness of these levels.
The strategy is effective within a one-hour window (9:30 AM to 10:30 AM EST) because institutional volume enters the market at 8:00 AM EST (when banks start trading), and the New York session is the largest globally, creating clear directional moves. The 8:00 AM to 8:15 AM EST opening range traps traders, and their forced exits fuel subsequent price movements. Untested levels are fresh liquidity levels that institutions target during this first hour. After 10:30 AM EST, the market often becomes choppy and less predictable, so the presenter typically stops trading.
This is the highest probability setup. It involves marking the 8:00 AM to 8:15 AM EST 15-minute candle on the ES futures chart with a rectangle and its midline. The range traps early traders. The next step is to wait for a clear break (5-10 points above or below the midline) around 9:30 AM EST, indicating institutional direction. After the break, wait for a retest of the top, bottom, or midpoint of the zone. The retest provides an entry point as trapped traders exit their positions at breakeven, fueling the move. The presenter aims for a 1:3 risk-to-reward ratio, typically with a 5-8 point stop loss and a 15-20 point target. Real-time examples are shown, including a losing trade where the presenter learned to wait for more confirmation.
The presenter, RP, introduces a trading strategy that generated over $750,000 in a year by trading just one hour a day. He learned this strategy from his godfather, a former Goldman Sachs trader, emphasizing institutional thinking and liquidity. Unlike retail traders who predict price movements with indicators, institutions follow money and target key liquidity levels (clusters of orders, stop-losses, and pending orders) to fill their large positions. This strategy focuses on these liquidity levels during the specific time window of 9:30 AM to 10:30 AM Eastern Standard Time, coinciding with the New York stock market opening and institutional volume.
Every morning, the presenter marks three types of levels on his chart: the 8:00 AM to 8:15 AM EST opening range (the first 15-minute candle of the New York session, including its midline), and untested session highs and lows from previous Asian, London, and New York sessions. Untested levels are crucial because they represent untouched clusters of orders, creating more significant price reactions.
The presenter highlights three common mistakes: 1) trading inside the 8:00 AM to 8:15 AM EST range before a clear break (due to low volume); 2) trading already tested levels, which lose their power; and 3) entering too early on a retest without sufficient confirmation. He emphasizes waiting for clear candle closures and observing strength. Recognizing that human errors like hesitation and emotional trading can undermine manual execution, the presenter automated the strategy with algorithms that run 24/7, executing setups perfectly without emotion. He shows backtest results and live performance of these algorithms, which generated consistent profits, and invites viewers to explore a guide on how these algorithms work.