Summary of It's not complex but changes everything
The video provides a detailed explanation of a trading strategy focused on identifying and trading along "low resistance paths" to improve win rates. Key lifestyle and trading tips include:
- Focus on the Path from Entry to Target:
- Aim to trade towards a Low Resistance Path where price action faces minimal barriers, increasing the likelihood of reaching the target.
- Avoid high resistance paths where price encounters multiple strong structures or bearish zones that act as barriers, often causing false breakouts and quick reversals.
- Multi-Time Frame Alignment:
- Confirm trade direction by ensuring alignment across higher time frames (daily), middle time frames (e.g., 15 minutes), and execution time frames.
- Trades with full alignment across these time frames have higher probability and momentum.
- Draw on Liquidity Concept:
- Identify clear liquidity zones or "magnet areas" on higher time frames that price is likely to move toward.
- Use these zones as targets rather than trading based solely on entry patterns or execution time frames.
- Avoid Blind Trading:
- Do not rely only on entry models or patterns without considering the broader market structure and liquidity.
- Understand the foundation and context causing the trade setup.
- Recognize Market Structure and Volume:
- Low resistance paths often form in low volume, corrective environments with round price formations.
- High resistance paths usually involve sharp structures, consolidation zones, and strong bearish Order Blocks.
- Practical Trading Formula:
- Identify a higher time frame target with a clear liquidity draw.
- Ensure Multi-Time Frame Alignment (higher, middle, execution).
- Confirm a Low Resistance Path from entry to target (minimal barriers).
- Time the trade appropriately (consider time of day).
- Execute with a clear target and manage risk accordingly.
- Handling Mixed Resistance Environments:
- Sometimes the path is neither clearly low nor high resistance but mixed.
- If all other conditions align well, a 50/50 path can be traded cautiously.
- If strong barriers dominate, it is better to stay on the sidelines until clearer signs emerge.
Notable concepts and terms:
- Low Resistance Path vs. High Resistance Path
- Draw on Liquidity (Liquidity Magnet Areas)
- Multi-Time Frame Alignment (Higher, Middle, Execution)
- SMT (Smart Money Techniques) and Order Blocks
- Importance of Volume and Price Structure
- Avoiding Blind Trading by considering the full market context
No specific locations, products, or external speakers were mentioned.
Notable Quotes
— 04:28 — « Price usually tends to do this after entry: it gives this fake type of a climb into profit and then just reverses on you right away, pushing away from these strong structures and bearish speeds. »
— 04:43 — « Traders really struggle to maintain high win rates not only because they skip some parts, but because they have such urgency, such rush to take trades, and they simply skip some parts out of that formula. »
— 06:44 — « What we have is low resistance buy side liquidity pools actually pulling the price, acting as a magnet, and this is when price can actually blast to the upside easily because it doesn't have to reach into some strong structure react. »
— 07:48 — « Entry model is just the last thing, and a lot of traders are basing and framing their trades only on the entry model. This is just blind trading; this is when you are lost in the markets pretty much just playing guessing games. »
— 08:58 — « If we have very sharp highs, very sharp structures blocking the way causing lots of high resistance barriers for us to reach our main draw liquidity, this is when for me at least it is a no-go and I sit on the sidelines waiting for some signs that price is actually going to take out this high first. »
Category
Lifestyle