The 1H Pattern Nobody Talks About - 1H, 1M Strategy

Overview

A discretionary trading approach is presented as a “1H (one-hour) pattern”, aiming to capture short-term price-action reactions without requiring a directional daily bias.

The trader claims:

• $1.2M+ profits in the past year
• 77% win rate
• Average risk/reward ~1 to 2 (the text explicitly states 1–2, and later examples mention approximately ~1.8, ~2.5, and ~1–2)

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Instruments / Markets Mentioned

Currency / asset references

• Gold (treated as an asset class; likely XAU-based, though not explicitly labeled)
• UJ (commonly USD/JPY)

Strategy coverage (as stated)

• Futures
• Forex
• Any currency pair
• Any commodity
• Equities

(No specific stock tickers, ETFs, or crypto tickers are mentioned.)

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Timing: When to Trade

Best trading window

• From the 2nd hour of Asia
• To about the 3rd–4th hour of the London session

Within the 1-hour candle

• Wait for the market structure shift around the halfway point
• Specifically: 30–45 minutes into the current 1H candle

Overextension requirement (duration)

• Overextension should last about 20 minutes
• Additional guidance in examples:
  • For gold: don’t go below ~18 minutes
  • The text also mentions “at least 20 minutes” at one point, later allowing lower durations with caveats

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Methodology (Three-Step Framework)

Each cycle is described as applying to one 1H period.

1. Mark the previous candle’s highs and lows

   • Identify and mark the previous 1H high and previous 1H low.

2. Wait for the new 1H candle to overextend

   • As the new “Alli” candle opens (interpreted as the new 1-hour candle), look for price to overextend:

     • Bullish setup: price overextends above the previous high
     • Bearish setup: price overextends below the previous low

   • Overextension quality filter

     • Must show high volume
     • Must have minimal pullback

   • Target extension duration

     • Approximately ~20 minutes of trending/extension without a pullback

3. Wait for a market structure shift on a lower timeframe

   • Entry confirmation = a shift in market structure, defined by:

     • Higher highs / lower lows on the lower timeframe (directional logic depends on setup)

   • Sell example (bearish shift)

     • Break previous high
     • Then immediately break previous low
     • Both with high volume

   • Buy example (bullish shift)

     • Break previous low
     • Then immediately break previous high
     • Both with high volume

   • Timing for the structure shift:

     • Prefer around 30–45 minutes into the current 1H candle

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Entry, Stop-Loss, Take-Profit Rules

The trader uses 50% reaction trades and a 50% Fibonacci tool.

Entry

• Enter at about 50% of the breaking move

Stop-loss

• Shorts: stop above the swing high
• Longs: stop below the swing low

Take-profit (TP)

• Target 50% of the 1H extension
• Uses a simple fib drawn from swing low to swing high (including wicks, as noted in an example)

Rationale for targeting ~50%

• The intent is to capture a small “snapback” / elastic reaction, not a full directional move.
• If direction is wrong and price continues, the likely pullback zone is around the 50% level.
• Therefore the strategy is positioned as reaction trading, not “correct direction” chasing.

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Performance / Risk Claims

Key metrics

• 77% win rate
• Average risk/reward: 1 to 2

Supporting stat: 10-minute reversal win rate (within the 1H candle)

• First 10 minutes: about 51% win rate
• Win rate is said to improve as timing approaches ~30 minutes (exact percentages after the first 10 minutes are not specified, but the trend is emphasized)

Example risk/reward figures mentioned

• UJ example: TP implies about 1.8 risk/reward
• Gold example: TP implies about 2.5 risk/reward
• Another phrasing suggests approximately 1 to 2 R on average (wording is unclear, but meaning is consistent with ~1–2)

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Explicit Cautions / Conditional Guidance

• Overextension must have:
  • High volume
  • No meaningful pullback
• If structure-shift timing is off (e.g., extension starts late):
  • trades may still be taken using a delayed entry
• Direction is said not to be “guessed”; the trader reacts to structure shift and targets small reactions

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Disclosures / Disclaimers

• No explicit “not financial advice” disclaimer is shown in the provided subtitles.

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Presenter / Sources

• Presenter: main speaker (name not provided in the subtitles)
• Sources cited: none explicitly besides:
  • the presenter’s own journaled data
  • a linked indicator / free Discord
• No named external research sources are cited.