Worlds BEST NQ Scalper Reveals His A+ Trading Strategy

0:00 welcome everyone to Chart Fanatics the go-to channel for the most in-depth strategy and concept breakdowns from the very best verified traders in the world And to kick this off there is none other than the very best trader in the prop firm space And I would say generally speaking too I don't know if you you'll take that but I'll throw it in there anyway but he has the record for the largest payout in prop film history with a total in payouts of 2.3 over $2.3 million And not only that just to top it off if that wasn't good enough in December he took $130,000 to over $1.4 million in roughly about a month Absolutely incredible And you probably already know who it is It is the founder of the lab Trader Kane Appreciate you mate What another

0:51 amazing intro Yeah Yeah Yeah It's you really went out all out there So well we're very excited Kane cuz this is a new concept something that we're very proud of and I know that we're going to you know really provide so much value to the trading audience and the and the community generally And we're going to go into your strategy that basically you're using to achieve those payouts achieve the results Yeah And uh where where should we begin i have a relatively basic strategy I I think from a high level perspective I always want to see price rebalance into 50% of the range and then continue with the trend right and I built a model around that The main thing that I consistently talk about is the daily and the hourly and H4 PO3 And it's just I think we should really dig into that today because I think that's where a lot of people go wrong They really marry daily bias of I want to see price trade here but actually I'm more of a I want to see

1:40 price trade from here to here if price doesn't get to where I want it to go and I don't engage and I'll just trade the other way in the coming days weeks months Yeah I think we should should really really go over that So let's go straight into it then Yeah So I think every single day when I approach the chart I I am looking for price to I guess manipulate right so if we have if let's just say the daily open is here and I I want to see price trade higher to trade lower I have two options right i can either wait for price to trade lower with my draw being higher and then look for various different things right a change state delivery an inversion I'm saying all of these words that everybody is familiar with right but typically what I look for is I look for this and

2:25 then a much higher range and then there is around 50% Obviously this is wildly inaccurate because 50% would be here but it doesn't look as great What I'm looking for is I'm looking for price to trade into around 50% And then trade into 50% of this range because I don't need a big move I just need to grab that base hit every single day and then I'm done I move on And if you know I take a couple of stabs at this and if I'm wrong I'm wrong That's okay I'm you know I'm wrong sometimes and that's that's fine But I I really really tried to instill into everybody that all I need to do is wait for price to trade into and we'll draw it out right is let's just say more recently we'll use recent price action Price is tumbling Yeah All I want to see is price trade into 50%

3:16 of the range here and then 50% of this range Yeah And all I want is this move right here because at that point even though the trend is this is the trend if this is going to continue to great If it's not it's most likely going to reverse from here Yeah Yeah So all I need is this move right here I don't need to trade from here to here because this is a risky move Yeah you know and I don't need to try and grab this because this is fighting the overall downtrend that we're currently in Yeah Yeah So I only need to do that So how do I do that right Um and and what do I

4:01 look for because obviously it's all well and good just saying I'm looking for 50% of the range And you're only trading NASDAQ right yeah I'm only trading NASDAQ Obviously I look at um I look at uh the SP00 ES for for divergence but we'll get into that Right We can take uh the price action of recent as as a as a good example right let's just say the the daily chart looks like this right um uh yeah And then this one looks like this And then this is the daily open that we're currently in Right All I want to see is price either trade And this is obviously just a daily chart is I want to see price trade into this high which roughly is around 50% of the range Yeah Right So all I'm

4:54 looking for is I'm either looking for price to trade below this low Mhm And I can look to trade at some sort of reversal That is a lot of a much more risky trade because it's fighting the overall trend Yeah or I wait for price to manipulate at a significant time point and then I'm trading from here to here Yeah Yeah It's just this tiny little move that I want Why would I look at it like we can just rub this out So this is the daily time frame right yeah This is the daily time frame Sorry you do the you do the text Okay So what would I when I approach the chart I would always look at the the daily candle forming with a wick above this area Okay right if if this is going to

5:44 continue typically we continue from previous day highs etc etc right so I would always anticipate that this daily candle is going to form not like that It's going to form like this and it may end up looking like that it may go all the way off the table right are you identifying fair value gap or is that not really is that just an added confluence and you're more focused on the Yeah I mean this is this would definitely like if there's an imbalance there in price i.e the delivery is so one-sided then yeah I want to see the delivery rebalance 100% It's the daily high right i don't care if this wick comes all the way down here and there's no high here I would still frame this as my version of manipulation right we manipulate above the the previous day high everybody that got

6:30 short inside of this move here And forgive me I do speak quite bearish terms quite a lot recently because I have been quite bearish on the market So it's hard to just suddenly speak more bullish So everybody that got short in this this candle from previous day that is swinging that's swing trading etc etc When we get a daily close here the one thing they don't want to see is us trading to this high So the amount of orders that are being stopped at this point So these would be your stop losses here Yeah They would be my stop losses Yeah that I'm that I'm anticipating that are getting run Obviously there are some days that this just never happens right and this wick looks like this and we trade like that and that's fine There are obviously other confluences that I look for in

7:16 this area but this is just like you say the daily time frame right now right i combine the daily time frame with the the H4 and then from a really from a like a very micro time frame is the the H1 for where I want to see all of those time frames align and once they align we then obviously look for entries right yes and at that point so I'm anticipating daily P3 H4 PO3 H1 P3 and then I'm once these are triggered I'm looking at this P3 would power of three So accumulation accumulation manipulation distribution And so let's just let's just take this and simplify this for a lot of people right because some people there's multiple different ways that it's done Where's the the

8:05 black pen hey guys just a very very quick one If you're enjoying this playbook and you want to get it sent directly to you make sure to go on chart fanatics.com put your email in and every episode we drop we will send you a direct PDF breaking down this exact playbook Or alternatively also the playbooks will be put all together with the rules over on Trade Zella That is an incredible collaboration So if you want to actually add the playbook to your Tradezella make sure you go check that out as well But let's get back into this episode Okay So some people support and resistance traders some people are range traders etc etc So when when we get price typically trade within a range like this this is just a low This is just a high Typically I'm I really subscribe to market

8:51 maker theory right so at this point is where 90% of people get trapped and they're like this is a retest of the the trend of the range and we and we take a long right that's that break and retest I don't I'm not a breakout trader so I would never ever look for that I would actually frame this as some sort of manipulation back inside of the the existing accumulation Yeah To then where's the green pen you got it There you go And then I would look for this to be distribution to there Yeah So if we then visualize that as your accumulation this is distribution We got all the bends That's

9:39 it And this is manipulation right how can I frame my daily candle within this perspective yeah I'm looking for the manipulation to trade into an existing high So if we use the blue this is the opening price So this is the daily candle At this point this daily candle looks like this Yeah Yeah And I want to I want to trade the wick of this candle Yeah And then we fractalize this right and the fractalizing just means applying the logic to to a different time frame Yeah Is we then look for this on a H4 Yeah So around those speaking EST times here around 6 10 typically 10

10:25 is where I'm looking for I'm looking for 10 a.m to manipulate higher Yeah And then trade lower That's where if you're looking at the H4 that's where you'll notice some candles next to each other That's the range And then that as you say that 10 a.m one you want that wick above taking out those prior wicks That would be your taking out those prior highs those prior lows Yeah that is my ver that's my manipulation So everybody will always tell me 10 a.m reversal doesn't work fine then don't trade it Um but it's typically the time frame that I like to trade the most So that's where I'm most active in the chart 9 around 9:15 to around 11:30 EST because it has that 9:30 liquidity injection So it's most volatile You can grab a quick move And then at 10:00 a.m it's most likely going to manipulate above the previous 9h hour high Yeah Trade back into around the 10 a.m open Statistically reverse I believe it does Some people don't believe it

11:14 It doesn't But ultimately by this logic if I'm trading here and this is the premium discount that I want I actually only care for this move I don't care about this right i actually don't care if we distribute I just want to trade the manipulation into the back into the range because if it is going to continue I don't want to be caught in it And if I'm expecting bearish price I will just as soon as we sweep into this I will just trail my stop to break just under break even so that I'm I'm not losing any money due to fees etc etc So we fractalize that onto a H4 we add in the H1 and when all of the time frames do something like this and they manipulate Yeah As soon as we get that sweep so say this is um so say this is 9 p uh 900 a.m sorry not PM

11:59 This is 900 a.m and this is where 10 a.m opens Yeah I want to see 10 a.m open sweep above the high and once this candle flips bearish I don't want to see it continue and and suddenly become bullish again So at that point this would be my logical area to get break even or whatever And I would look for some sort of reversal in and around this area Mhm And again we can get into that in a minute around around actually the entry model but that we have charts as well to go Yeah Yeah Yeah We have we have a bunch Yeah So um and that is typically what I I look for on a a daily Once that that daily profile where I want to see price trade into is hit I will then do the

12:48 exact same thing on the H4 And typically when the H4 and the H1 aligns around that 9:10 a.m they will typically both hit the same point that I want it to go to and then I'll wait for that breakdown Obviously I'm not just like oh we traded above the high I'm short or I'm or we trade above the below the low and I'm long confirmation stacking those layers that creates your high probable scenario Correct Yeah And that's what I'm always waiting for The reality of this is that um I guess the pros of it are once when it plays out typically this move can be quite quick especially to the downside and well actually and the upside once it really hits that level that we want If you were looking at the upside it would just be the exact same just flipped Yeah We just turn the chart around Yeah Literally we just flip it the other way Um and it would just be going up

13:34 Like I said as of recent times we have been gone down quite a lot I'm staying with the trend Like I said I want to see price redeliver into that equilibrium that 50% of the range what the premium discount you name it whatever it is And then once we hit that I want to see it continue with the trend wait for that confirmation The pros of that are you can really catch like the highs and lows of the day Yes And you know you can grab that move and it can be very quick and you're in and out The cons of it are you are trading a reversal It's risky Yeah Right You are trading against current order flow you are waiting for confirmations but ultimately this is a riskier model which is why um for those that know me I I am very very fond of break even trades Like I love as soon as I'm in this trade here let's just say I'm risking $1K right the moment that I can claw this back is a

14:23 win for me Yeah Because in my head I just lost 1K And if I can get break even here and I'm suddenly break even I no longer am down 1K in my head And then if suddenly I'm up 1K or I'm up 2K or I'm up 3K it's a win at that point At this point I'm now in my head I'm up 1K I'm actually up 2K because I risk 1K you know And that for me is the the real differentiator between a lot of people A lot of people only see the reward and don't focus on the risk I really emphasize the risk and get break even when I'm like either my intuition is like this doesn't look good because that is also a real thing Um but also the model is like okay hourly low 15-minute low we're now reclaiming okay I don't want to see that trade back into the open don't want to see that higher time frame candle

15:11 flip bullish after we trade after that candle flips bearish and we take out the high because statistically if it does I'm I'm wrong right and that's just so technically that this process of the P3 or the AMD is then almost canceled out in a sense because the manipulation didn't manipulate yeah most likely you can then obviously look back and this is just how how it works is like most likely this is some sort of manipulation you know like on a lower time frame I don't really look for time frames lower than this for the for the AMD I always just want to see you know from a from a daily time frame this is the wick From a H4 time frame this is the wick And then an hourly time frame this is the wick I use that to like section off this area as me wanting to to get

15:57 um to get short in So like I wait for that daily level to hit Great I then wait for the H4 level to hit and I wait for the hourly level to hit And this is the area that I want to get short In this case uh if it gets to the 50% of the range that's your you know original target Yeah What is it that you look for if ever if in terms of holding longer is there anything in particular or is it more so just momentum on the day is there anything that sort of stands out to you it depends really I really adopted this as like a take my trade get out of the market be done for the day And I really do adopt that mindset I think the reality is is once you start to trade bigger size you realize that like leaving this move to here is 20K but this move to here is 100K you do start to kick yourself a little bit because we're humans and we have emotions and it's like wow I could take five

16:42 of these trades or I could have just held this one Statistically I've also like held trades out to lows of day and then got front run and I'm like round tripping my trade Yeah So like over time I've just realized that statistically if we're going to return it's 50% If we blast through it then I'll just I'll put my stop loss at 50% I'm that was what I was going to take for the day And if if it runs into this extreme great you know but you can't you can't play for those 2% those minus 2% or plus 2% days Yeah Because okay it's great that we've had a week and a half of backto-back minus one minus 2% days but it's very very you know irregular We typically have plus 0.7 days or a minus 3 0.3% day It's like if you play for those extremes every single day yeah you are

17:30 going to get chopped up If you play for the range every day you're going to get your base hit most of the time Maybe not every day every other day Maybe three days out of five maybe four days out of five Um but technically this is the area that price trades the reverses from the most Um but that does like I said doesn't mean that I don't sometimes stay in for here and trail this aggressively when we have those you know monstrous drops because someone speaks about tariffs or you know suddenly China decide to return tariffs and we drop a percent on ENQ it's like okay well this is going to continue It should just fall through here I can just trail my stop loss to here and if it comes back I'm wrong And sometimes that stops me out and then dies Sometimes it stops me out and then rallies I'm I I don't get to control that So all I can control is okay I've made this much

18:15 money I'm locking that in Whatever happens happens If we continue we continue I'll just consistently look to trail that Yeah Or I'm happy with that and I'll come look at this at 4:00 when the market's about to close and I'll see where we are Yeah You know it's I'm a big believer and you know advocate of everybody wants to be a trader to work less Yes Sits at their charts for 13 hours a day and it's like and they're working more You're working more losing more and it's just mentally exhausting you know Um so yeah So that's kind of what I look for Like I said there are pros and cons to it The cons are that it is a risky Yeah it's a risky setup and it requires a lot of patience and that is probably the number one thing that 95% of people really really lack in this market They open the chart as soon as they wake up That's right I had the cons for the people Yep 100% Like I think not only

19:06 the patience but because it's shorter term trading uh a lot of people assume that you don't need the patience right because that's for swing traders that's for the position Oh I wrote this the wrong way It still requires patience to let as you say the model to play out and present itself first Let's take a break for a minute there guys because I want to tell you about our preferred prop firm Apex Trader Funding Now Apex is no stranger to the podcast or even chart fanatics because we've done two incredible episode with two record holders in terms of trader Kane who got a record payout at $2.3 million at Apex And then beating that record in the end was Jadecap aka Kyle who also then has a record payout now of over $2.5 million in a single payout with Apex And that really just shows

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21:27 is it's a riskier trade because it's a reversal and price typically as we can you know open the ENQ chart you can see when it runs it runs you know we're up nearly 50% from co lows probably more actually when it runs it runs and typically if you try and catch a reversal on a very bullish asset historically it's it's you know it's dumb many many would argue at least um it's risky um it requires a lot of patience so would you say most of your trades even though ENQ has been quite bullish over you the last year Um you're still looking at sells Yeah I'm been because ultimately if price is going to continue higher it redelivers into that's where that 50% thing come because even if it's going to go long you're just getting that that base hit Uh yeah And some days like price is

22:15 you know really overextended for like a week and I will wait for it to come down to that 50 around that 50% and then I'll trade the reversal back into the 50% of the drop Okay You know I'm only I'm basically trading 50% of the 50% Mhm You know I'm waiting for the higher time frame pullback So that fractal nature that fractal nature Yeah So it requires a lot of patience It's risky Um and if managed correctly you will have a lot of break even trades Okay Um and that is to combat this Yes Yeah Yes That's the only reason And people look at this as a negative thing which is why I'm putting it in the cons Well I think it's important because a lot of people would struggle with that And if they're not or at least that if they're not mindful of it they may not be as aggressive with their break even as they should be So then they end up taking unnecessary loss after loss And in

23:02 reality if you manage aggressively as you're meant to uh then that allows obviously for the pros to take place afterwards Yeah Like I I really you know about four months ago I heard Pax a guy that traded the pits obviously he said "You either need to be right or right out." And I I thought about it and was like "That doesn't really make much sense at the time." And I was like "Well actually he's right like you if you're wrong you need to be out of that trade as fast as you can You don't want to be in it or waiting or being emotional about oh but I have a gut feel The market doesn't care about your gut feel It doesn't care what you think And you can do that over time So I put this in the cons but I would put a green bracket around this because I actually think that this is most of the Well this is what makes it profitable is by doing it aggressively but it's just as you as you say it's in the cons because you need to be mindful of it You have to know that that's

23:47 something you have to accept Yeah And uh for some people it might be hard to accept but that is is so important People that don't do this correctly that pick up my model will consistently tell me the model is not profitable Yes Right And this is where it's like the model is profitable You're just not managing it correctly because you're not looking you're looking at all the reasons it could play out and you're not looking at all the reasons it could not play out You know suddenly the this area of support over here and we can rub this out is like you're playing that reversal This area of support where price really like did this before going higher you're trading it here and then this is you know 50% of this range this low and suddenly price picks back up and you're like well that shouldn't play out Well actually this area of support is just a basic support and resistance and you could have been out of this trade net zero But a lot of people don't do that and they're like

24:35 oh it didn't just getting married to the buyers It didn't play out It's wrong The model doesn't work etc etc So the pros of this though are you can catch high of the day High uh/ low of the day Yeah Um and you can really catch a monster trade if managed correctly It is highly profitable because but again um it comes back into this point It's only profitable when the break evens are managed are managed correctly and you are trading that you the the pros are the higher time frame alignment and you can manage that You can really get into this trade on a very low time frame Yeah um time frame Would you class this uh strategy and what we've gone over as sort of rule based

25:21 as well yeah Yeah There are rules to the there are definitely rules to the strategy How much how much would you say is in terms of mechanical versus discretion in this i think a robot could pick up the model and with the right if I could really if I sat down and wrote the logic out correctly it could be quite man mechanical The reality is is that I think the discretion is my edge Like that is just part of it right and everybody that like I've ever taught or will ever teach the first thing I say to them is this is going to really suck because I can't teach my intuition And part of my edge is my intuition But I can teach you the model and help you learn the intuition over times But the only way you can do that is through the reps Yeah Yeah Reps is the most important The reps One thing I will ask in terms of this model is it purely obviously you're trading it on NQ Um but is have you had traders or anyone that you know who's taken that model and used it elsewhere

26:10 as well i traded a bitcoin short from 100k to to literally to 80k for this exact so you could say I don't know if the right term is fractal but it is something that can be applied elsewhere as well multiasset like because ultimately I like I said I subscribe to market maker theory the market just across the board from a liquidity standpoint means that price should always be offered at fair value which means it should be distributed into 50% of the range yes and omally that doesn't mean that price doesn't can't can't just suddenly go 50% of the range it could just trade all the way to very close to the new low and then redeliver into 50% of the range right and we've seen that you know like euro euro USD for example it trades you know sits in this range forever breaks out everyone's thinking it's going to the range low and then it just returns to the range EQ and it's like okay what do you do you just not sit in that trade and wait for the EQ Okay you probably look for

26:56 a fractal range inside of there that you then look to trade So the pros for me right are you can manage the train the the the trade on the it's basically multiple time frame but it's fractal You can get into a low time frame trade There's a con to that is that it's more risky Yeah you can get into a higher time frame trade They're higher probability but again they're wider So they're more swing trades right you can't trade them on more futures assets It's more um like lowle leverage products um that you would look to trade Um so it's multiple multiple time frame Um so it suits both traders Some traders I get come to me and go I got a real job I don't you know I can't be at the market all time every day Well the model works on a higher time frame I took a Bitcoin short based on the daily literally the daily chart I didn't look at anything else just the daily chart and I took that and it ran minus 20% You know so if you necessarily can't be active

27:45 during that time window because of the fractual nature of it is still not a problem You just take that viewpoint higher Yeah And therefore able to swing trade/position trade Correct Yeah Ultimately like I said I subscribe to market maker theory I really believe that the market just delivers into 50% of ranges and and redelivers into a 50% of another range And sometimes that won't hold and it will just go lower and it's a higher time frame range all the way on the left Right i built a model around just grabbing that 50% to 50% And that's all I need And if I do that on a lower time frame I can look for a trade most days Not every day is a trading day of course just like everybody But I can look for that trade most days And if it's managed correctly I will most likely get at minimum a break even trade or some sort of profit And if price is very you know I'm grabbing

28:34 that reversal based on that confirmation and price just reruns the high it'll be a loss But statistically over time it's profitable And that's you know you only get that from doing the reps like we said Yeah I love that And in terms of um off the back of that what would you look for entry- wise is that a confirmation based entry that you look for or Yeah So I look for uh because I'm trading the indices The indices are very you know they're very well aligned So if if ES let's just use ES for red um ES is red NQ is green If NQ does this right mhm ES should also do this right they may not look completely like in terms of you know this one's a bit lower but they took the same low For me this is a well delivered market okay right I don't like this I

29:24 look for the divergences between the two because it shows relative weakness on a single asset Right Okay So and we and we can go I can actually show you an example about this Um I can show you the exact example and we'll draw the entire chart is that um ENQ rallied again this is say this is 9:00 a.m This is 10 Yeah And then trades lower trades higher and then does this and then trades into around 50% of that range Okay But at this specific point ES does this Okay So ES runs this existing high So then that happening that divergence is

30:11 then telling you the the weakness on ENQ is much stronger than ES at that time Yeah So I I care more about this chart from a volume perspective because this chart has the most volume It's the most traded asset in the world other than bonds right so if this is going to just do this it can do that And this could just do this as well right it's getting very uh very crowded I love it So it could just do that Mhm I my invalidation for this is that why because this shouldn't then go on to break this high Yeah This should continue below

30:57 here Okay Right And this is what I'm looking for again 50% of this around there Yeah Right I'm looking for that And then I'm looking for a breakdown in and around this area Okay more so this area because it's the wick on the hourly time frame Yeah I want to be positioned in this wick Well obviously this doesn't look like that but you get the point right i want to be positioned in here in any capacity So with that in mind I more or less just look for an imbalance in here that has impulsed higher Mhm Right And then I want to look for an entry once we once this SMT

31:46 SMT divergence again call it what you want It's just a cracking correlation Um trades below this level I will either limit a re a retap into this area or I'll sell stop this with my invalidation here targeting 50% of this Yes there are other things that I could that I use to have higher time frame targets or actually we're most likely to trade into the low But the basis of what I teach is this right because you like I keep saying you only need this move from here to here You don't need from here to here You don't need that And most of the time this is just a motion hoping this plays out you know it's not doesn't have the logic of it continuing higher And like I

32:32 said keep we'll keep saying it Everybody will look at why it wants to play out over here and not look at this as the reason why it won't play out Um so yeah So ultimately just to confirm right mhm Divergence a uh a weakness in market structure Yeah In this in this example it's an inversion Yep And an inversion is just a previous gap that should be used as support gets traded below and used as resistance and used as resistance Beautiful Yeah Yeah And then um and then just this is basically everything Higher time frame pre higher time frame premium discount that H4 PO3 So higher time frame

33:22 uh P3 Yeah So in this instance it would be the the daily plus the H4 Yeah Yeah And then at that point my trade would be entry uh at inversion Oh my handwriting is awful No it's great At inversion and then uh my stop loss Oh that was awful At uh divergence Yeah Oh yeah At divergence Um and then my my TP is just

34:08 um% 50% Love that Would you say uh one maybe not a con but something to be aware of do you think it takes certain adjustments for some people if they haven't been maybe utilizing you the fractal nature of the markets and that higher time frame sort of viewpoint so for example in this case the P3 from daily 4hour obviously still looking at POV um POV P3 sorry for the H1 Y um do you feel like sometimes people have to get used to being able to see the market in that way by keeping still keeping in mind the the daily when they're on the H1 for example and the 4 hour yeah I always advise people to to where do you if you had to tell me right now where you want to see price manipulate into on the daily chart where would that be mark it out Just create your little box Now do the H4

34:56 Now do the H1 And now just create a box where they all align and figure out that that's where you want to see it manipulate You need logic for doing that The logic for me is the range right that range And it's understanding there are obviously there are some other confluences like I say that you that I use to say okay we might trade a little bit further than the 50% of the range It might be 60% It might be 58% I don't look at it that way It's just 50% zero 100 Once we're above 50 I'm looking at that breakdown from there because that's where I'm looking at that And then I fractalize that from a okay well if the H4 candle frames in here I want to see a push above the previous H4 candle And that H4 candle has four 1 hour candles So I want to wait for that push above and that break down So then you're trading the H1 PO3 inside of a H4 P3 inside of a daily P3 And if

35:43 you combine them you can get much larger targets Why because the daily P3 should technically that's the high of the day it should technically go to the low but for most people this is enough if you want to swing trade and do all that you have to really really understand the P3 fractility very well do you feel like the best way to start is to start with the base hit yeah over time build that confidence with that base hit get the results with that base hit as you're doing so you will start to pick up on more of that higher time frame you'll start to pick up on when does price actually play out for the higher time frame over time But what a lot of people unfortunately do is just try and focus on this straight away before they've even got the base hit done Look I'm a big believer in base hits right base hits have made me millions of dollars in the market Um and like I say if managed

36:30 correctly you can really avoid a lot of silly losses and get break even days maybe a little bit positive days which for a lot of people still hits your daily requirement for most prop firms for payouts etc etc Everyone would like to trade the high and the low of the candle Yeah If you could do that you would be a trillionaire right so the reality is you can't do that And you may catch it once in a blue moon or once a month or twice a week I don't know Or not twice a week twice a month you know twice a week you're probably still a billionaire You may be able to do that but over time if you consistently look for that you'll take a lot of losers So it's better to have a set of rules that say "This is where I want to see price trade to." And if price is really you know moving or hey the volume is insane here hey trail your trail your stop loss move your TP target to the

37:18 extreme and aggressively trail that stop loss And who knows you might get 20 30% more profit But don't be upset that it didn't hit the extreme because it's still past your POI that you should be out at Yeah Yeah And that's your line in the sand We go there for any reason you're out You want to see it really fall through Again to to quote Pax you want to be right or right out Yeah So but yeah this is what I look for And then like I say you fractalize this and say this is the you know this is the daily open You just imagine that the H4 opens the same way You want to see the exact same thing The hourly opens the same way You want to see the exact same thing trading above that previous hour that previous day that previous 4hour candle because when they all align and it's the 4hour wick inside of a daily wick inside of an hourly wick when that next hourly candle

38:06 opens bang it will just fly Um so yeah let's take a break for a minute there guys because I want to tell you about our incredible sponsor Tradezeller Tradezella is the number one trading tool in the entire trading industry Tradezella allows you to become a more profitable trader Allows you to make immense progress as a trader no matter if you're a beginner or an advanced level trader because it makes journaling easy It makes journaling something that is fun and enjoyable and something that is interactive So no matter if you're a crypto trader no matter if you're a futures trader no matter if you're a forex trader no matter if you're a stock trader all you have to do is select your broker your platform of choice and connect it to Tradzella and it will automatically sync your trades and pull all of that data onto the dashboard making journaling and finding your edge

38:56 and adapting your edge so easy In collaboration with Tradzella and Chart Fanatic specifically we are actually getting the playbooks from the episodes that we're filming with these incredible verified traders and adding them as playbooks onto Tradezella So you can actually go on there and see the rule sets already predefined So make sure you check that out as well Now you can actually get 10% off your monthly subscription using CF10 on Tradella right now But more importantly I would say CF20 for 20% off your yearly subscription with Tradezella The links for Tradzella are in the description below So make sure you go check them out Use CF20 Get 20% off your yearly subscription Become a better trader today Now let's get back to the episode Love that Hola Let's take a look at

39:44 the charts now Um now that we've done all the the visuals and explainer I'm sure people are excited for that So we're in the chart now When I when I approach the chart I will go on the daily time frame like we just discussed that daily that daily fractal P3 I will mark out the current high the current low I will see that since trading into this low we failed to trade we failed to trade into 50% of this existing range Yeah And then from a again a much much higher time frame perspective Um sorry this is the high Yeah there is uh no leave it Um we are currently in a much higher time frame 50% Mhm Yep So right now typically I am looking for some sort of reversal from here up to

40:36 here Okay Right So from a now we you know taking off the whiteboard onto the chart Yeah Overall I'm waiting for some sort of reversal characteristic on a daily time frame to then have my bias that we're looking that we're looking to trade up into that area Right let's take these drawings off So now we just drop down to the H4 Right and we'll go over a trade example from yesterday Right so if I just replay uh if I just replay this to yesterday So Thursday 10:00 a.m We'll do it from Thursday Uh this is Wednesday so we can just leave it on Wednesday right um Wednesday 2:00

41:28 I would then go to that 4 hour and then I would mark out this high This made a high So if we were to mark out all of the four hours from the drop right This was how how it happened We didn't we failed to distribute into EQ We then make a new low So this then just becomes this We failed to distribute into EQ So this becomes a new low So you can see that we've built up an engineered liquidity around that resting EQ now Yeah So this is the overall 4hour r that that daily range Sorry So then from that 4hour perspective when we make a new low when we consistently do this and we just make a high make a low make a high make a low what it's delivering in is to 50% of this Yes Yeah So if we just go ahead and mark those out right so from this just put the magnet back on If we deliver from here to here you'll notice 50%

42:16 some sort of higher time frame sweep that 4hour PO3 is in here Yeah You can see that with the 4our candles next to it sort of the range then the wick and then obviously the manipulation the distribution If we just drag this to the side everything we just discussed is in in here that 4hour that high that low 50% of the range 4hour P3 And then if we fractalize that again H1 I want to trade in here Oh and look I have an indicator that automatically prints S&P So there's your divergence There's my divergence So at that point I'm looking to trade this This is on this is this is on Monday actually So again before we've even gone and I'm just using I'm just immediately I've just jumped to that just from drawing this premium discount range

43:03 It's not even the trade we're going to show Right So again here we failed to we did we fail to distribute into it yeah because we made a new low Right So here Tuesday right again 50% Now what are we looking for if we fractalize that premium discount right from here to here 50% we trade into it that H4 wick that PO3 you know again we'll just get to the the Thursday bit but I'm just showing you how I mark out premium discounts right so Thursday uh yeah this is Thursday at 10 Okay So we have previous day low Yeah Yeah So this is uh sorry not previous day low This is previous previous day low and this is um previous day low So you got two from Wednesday right so ultimately

43:53 from from this drop to here right that's the the current when I'm approaching the chart on Thursday at 2:00 Um yeah at 2:00 I would then go to a lower time frame This little gray box here is just marking out the Asian range It's the most lowest probability conditions I just mark it out as a when we sweep one of these areas typically we reverse from it Everyone should be familiar with the Asian range If not you can Google it It's very very very well documented about what it is Right So this is a similar concept in terms of like uh building up a range liquidity either side Building of the range sweep reverse and typically this doesn't sweep it today but it reverses right what happens is we end up sweeping that We get that divergence at 2 o'clock which is

44:41 what the 2 am EST which is when I consider a London open Yeah ES sweeps that because of this little red line that prints It sweeps it and then it reverses So this is a good example of accumulation manipulation distribution to the downside right i'm not trading this because it's low probability conditions for me right so where is price most likely going to end up based on this and this mhm We can also just mark out because we would also mark out the hourly I can I can tell you that this is the hourly range So if we mark out this low uh right I refer to this as the logical liquidity target which is basically if we're marking a premium discount range is the first high or low in thatif that 50% drop Right

45:27 so I want to see price trade into that area Once we hit that area overall I'm waiting for price to show a characteristic for us to reverse And ultimately what I'm looking for is I'm looking for that characteristic to form Right do we get something what's the time let's just mark this out Again this will just consistently move until we hit that 50% of that of that range Right do we get it do we get it nope We just keep going lower Right again some people would draw it from here the premium discount from here to here But because ES actually took the high here in my head this high right here is the high Okay Yeah So I don't care that this is the high or I don't care about this one I care about this is because this at 2:00 that's where you use that swept that

46:15 liquidity Where I use that divergence because in my head from a logical perspective I'm treating this as that this liquidity has been swept and we should not return there Okay So that is the new dealing range Premium discount range that I want to see right so we've traded way into discount right or premium if you're well it's discount because it's 50% lower Right And then what I'm waiting for is I'm waiting for we frant ran previous day low Yeah Right So to me this is just engineered liquidity Yeah We're now inside of premium premium right we've got that 10 a.m right so if we mark out the previous 9:00 a.m high which is right here that's our hourly PO3

47:06 So right now this is the area that I want to see price manipulate into and trade away But we're skipping something So what is that that is the the daily Did we take a previous day high no I'm still expecting to trade into some sort of low right and then if we go on to the 4 hour and again it's probably just going to skip forward but we mark out that previous 4hour high And then if we go back to the hourly that previous 4hour high is resting just around the EQ Yeah Right And then what I would do is I would say okay we've hit that hourly high at 9 at 10:00 a.m Right Now what I want to see is I want to see price breakdown This is the hour This is the hourly P3 What I'm looking for right Hourly P3 That is aligning with the H4 P3 Yeah

47:56 Yeah This is at 10 So right now we also have our eye on 10 a.m high So as we approach into that 11:00 area so this is 10:30 So we can just keep moving this There's no confirmation breakdown right now right okay we trade lower The H4 PO3 is looking good But in five minutes time because I'm looking at the bottom of my screen right now down here in five minutes time this candle is 1055 In 5 minutes time if I look at this do I want to see a reversal from here or do I want to see this high taken most most of the time I want to see this high taken Okay but I would wait for some sort of confirmation here right so I would wait I would typically drop to a lower time frame at

48:47 this point once this SMT prints because it's it will show you a dotted line because it's saying the ES is trading above this high Okay we have dual SMT so or dual divergence which means there's divergence at the lows and divergences at the high which means the range is getting tighter And now what I would look for is I would look for this inversion that's that either to hold Yeah or us to take the high follow through and then trade back through this inversion and my trade would look like this Right so at this point you would have a sell stop So at this point I would have I would be anticipating and again this is again due to my intuition is I'd be anticipating that this high would would hold right again SMT SMT at the low to to here This would be my logical liquidity

49:38 target And again a lot of people are going to not really like this but this trade isn't the sexiest of trades right again this is what I would look for right now This is what my sell stop would look like right anticipating that if we reverse from here this this will confirm the divergence between these two Yeah Right What happens i'm in this trade now And at that point this will now be my stop loss Okay Right And then price will you get you get a chance to enter because price trades and we can just zoom in Price trades closes below the inversion right here You get to enter here and you get to enter here Right so this is right now we are entering inside of that 4hour wick Right because this is the previous 4hour high and we're still in that 4hour candle We don't get

50:25 a new 4hour candle until 2 o'clock Right so we're entering inside of that 4hour wick And also you have to remember where did 11:00 open up right here We are also entering inside of that hourly wick Yes Right So the H4 previous 4hour high and the new hourly candle opened This this as of right now is um is the area that I would want to want to go break even right because this hourly candle just flipped bearish and that's just really showcasing the aggressiveness of that Correct Even Yeah I mean this is not even ran This has just ran one R It's just purely coincidental that it's 1 R Yeah It's I don't care that it's 1 R I just care that this hourly candle was flip break even

51:13 Uh slip bearish Sorry It's hard to show that with trading view replay mode So it's a bit difficult Right So but if you envisage that let's just drag this out of the way The 11:00 a.m candle opened here Yeah And this is where it it opened And now this is what the candle looks like This is the wick This is the body Right So this would be my trade and I would be out Right And omally I get out of this low Yeah I can tell you what happened Trump tweeted about tariffs Uh tariffs pausing Yeah Right Um but if you missed this trade for any reason would you enter here now no because it hit discount and ultimately we're anticipating the high The reality is I closed my trade right here

52:01 I don't care about this Yes Because if I for whatever reason was break even here and I was aiming for this low I would have got stopped out and then the move went went against me Yeah So I would have missed out on Okay A monstrous move but I still caught 381 ticks on one contract That's quite a lot of money right 381 times five I'm bad at math We know that right it's a lot of money right i'm trading more than one contract That is enough for a good amount of time And and again we can show you my trade seller in a minute for the trade that I took there and and how much that uh how much that looks like right so ultimately and that is that that is the trade from uh from Thursday So fits that 4hour hourly P3 Yeah trading it back to discount and I'm done

52:52 This trade this trade runs like really really runs like you know I could I could have stayed in this pretty much all day until the close You know the closes all the way over here Mhm All I need is this tiny little move in the market waiting and waiting I could have tried to long the bottom here here here here here I could have shorted once we just trade above this high No confirmation And this could have ran all the way up here Yeah just like it ran all the way down here before trading higher right i don't I don't like to enter around the open as much as possible I entered twice this week and I took two losers around the open So on this specific day I avoided this move Okay And also there's no confirmation This is if you could rate it out of 10 this is a 12 plus This is a 12

53:40 setup It's the best ever SMT 4hour high trading above into discount with that inversion straight into discount and if you really wanted to get back in you could I would never ever advise anyone to do it especially after something driven like Trump tweeting about tariffs It could have just gone skyhigh You know we got we got a monstrous run over here because of some tariff tweet and it was just like the thing is by doing the base hits over and over for the time that you do then feel the intuition you feel the market's in the right place and you decide to hold you've already banked a buffer to do that Exactly You know once Yeah exactly Once you've done the reps enough time it's like hey I actually know that this is or I have a gut feeling it's going to play out I've made a bunch of money I can take a bit more of a risk That is purely purely intuition It's not it's not

54:28 anything of like okay there's some confirmational factors there but it's betting on your your draw more often than not this is purely just the model the low as you said that that's more than enough to make a good income and it might not be where you start you might start with micros you might start with a smaller capital but it's a through focusing on the the process and focusing on uh the strategy and sticking to it and getting those basics in that's the only way to scale right you have to start somewhere and build up that repetitions build up their repetitions and then that's the only way really to scale Let's take a break for a minute though guys cuz I want to tell you about our incredible partnership with propfirmtrader.com Majority of you out there are prop firm traders You're using prop firms to leverage your trading skills to be able to get more capital and to be able to absolutely change your life So what's important to you to

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57:40 with one micro it's 200 bucks you know is that it's not in a day right in a day Like in a day if you want to class the actual time let's just say it's a day right because it's you waited around you were patient you did all those things You you made 200 bucks Like where can you make 200 bucks by clicking a button and being a bit patient and practicing all of those things it's really hard to just get that out of nowhere So a lot of people go and work a very manual labor job for 12 hours a day 10 hours 9 hours a day whatever to make that money We do it and okay fine You may have some losers occasionally on the days but over time you're going to make more than 190 bucks over time because you take one trade you take two true two trades that scales and scales and scales then suddenly you're making you know daily wages in minutes and weekly wages in hours you know So

58:26 um and then also so this is obviously around the open So uh I'm just going to remove all my drawings again So that was that trade And then on Monday I actually took a a long uh no no I didn't actually That's a lie Okay So we get a drop at Monday at 9:30 We get a drop and then we get that push up into discount here Right Again we just did the daily and the 4hour the fractility But this is the 9:30 drop Big build up throughout Asia We have a big drop here This is really showing that Asia side now where we've taken the high then we could target the low as well Took the high target the low Yeah So if we just mark out this to here Yeah Aiming for that 50% 50% pull back into 50% to then trade lower and then the Asia low sits above that

59:12 50% as well Exactly Yeah So um again I'm just going to We obviously know how that plays out because so again right so a lot of people could just take this inversion right here right like I said 50% that breakdown What we're really missing is the key piece sometimes is that that divergence right so if we break this down H4 trade above the high This is the H4 PO3 The daily P3 looks like this We're trading above that daily high Yeah We're trading above that that 4hour resting high Yeah And if we go to that hourly it happened at 9:30 We manipulated higher and then traded lower

1:00:03 again I know some people that caught this trade from a very low time frame perspective where you know they sell stop like this inversion with this being some sort of SMT and they sell stop it and they get into it and it and it falls off We can't catch those every day and I didn't personally catch it Right So based on this this 5 minute I'm waiting for that SMT to form Yes Right And it's at 3 minute Right waiting for it to form and as soon as we close back below with that SMT Yeah All I'm looking for is the first low inside of that discount I wouldn't necessarily

1:00:50 include this This trade is definitely not the sexiest of trades It's 1.26 right but it happens more or less straight away ah this was actually the one that I got stopped on and then I re and I re-entered over here because we got again we get that confirmation of SMT and that happens sometimes right and based on that it's just it is just the laws of probabilities right I would always just leave this because it's so such a low risk-to-reward trade I would always just wait it out and then with the second trade uh I would sell stop this bas area because my bias doesn't change the only way that this changes is If we continue higher right and I would take I would always take two You got SMT then off the back of that as well Yeah Because this this was SMT Yeah Yeah And then

1:01:38 this went on to create SMT again right with NQ taking the high and ES failing right and then I would just sell stop this this trade at this point because of my risk-to-reward and I got stopped I would just a I would aim for a larger target But more or less because it's on the three minute as soon as we take out the 15minute low yes I would just be break even Okay Right So as soon as we take this low on this I'm now break even My risk is nothing I'm not risking anything If I now get stopped to break even on the day my risk-to-reward is nothing And that was that And that was it And I walked away with a loser on the day You know not every day can be a winner Um and we can go from there That is the the the trade And then again in the PM session and we'll come on to it Again

1:02:27 in the PM session I did a I joined a stream with a one of my one of my friends a guy that I you know I trade with sometimes in terms of I check in on his content He does a PM session every single day Um and then later on at like 2:00 with that H4 PO3 again uh we took another short and I literally finished just above break even on the day on Monday actually No it was quite That's a lie It was quite a big day That's a lie That's a straight up lie Um but we can go into the trades report There are quite a bit of break even trades in there and we can again we can we can show that and there are also some losers right but the the number one thing is that I that I always wanted to highlight by coming here and having this is that if we just respect 50% of the ranges and the ranges are marked out correctly Yeah We can really really really manage our risk You

1:03:13 know I would always take this trade with this SMT We don't trade into 50% Well we trade into 50% here but because of that this is the first low in discount I would never ever go break even on this trade because it's bad or um and I would just accept my risk Yeah And then I would always know that I will get another shot at it or I'll be wrong and I'll walk away you know So I love

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