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Overview of Day Trading Model No. 5

Oct 12, 2024

Lecture on Day Trading Model No. 5

Overview

  • Focus on revisiting Model No. 5, a day trading model.
  • Preview of upcoming detailed lessons in 2020, starting with Model 1 in January.
  • Emphasis on understanding the inception and direction of market moves.
  • Aim to provide a simple recipe for trading using core mentorship material.

Trading Strategy

  • Point of Origin: Use fair value gaps as the criterion for setups.
  • Determine Market Bias: Use higher time frame charts, particularly weekly charts, to anticipate market direction.
    • Example focus: Dollar CAD expected to go lower based on analysis.
  • Power 3 Concept: Open, modest upside, majority range on downside.
  • Draw on Liquidity: Target old lows and liquidity points in the market.

Key Concepts

  • Fair Value Gaps: Important for identifying setups.
  • Weekly Range Expansion: High probability setups are based on weekly range expectations.
  • Institutional Order Flow Entry Drill: Used for practicing entry techniques.

Detailed Analysis

  • Use of PD Array Matrix to find discount arrays.
  • Calibration Techniques: Utilize specific price levels for projections and consistency.
  • Standard Deviations and Flout: Use these for high sensitivity levels in price action.

Trading Process

  • Daily Range Expansion: Anticipating price movements on a daily basis.
  • Kill Zones: Utilize London and New York kill zones for entries.
    • Additional options: London Close, Asian Kill Zone.
  • Entry Techniques: Focus on fair value gaps during kill zones.

Examples and Applications

  • Example analysis on Dollar CAD: Targeted old low of 130.68 with calibrated levels.
  • Discussed trade setups and entries using fair value gaps and institutional order flow.
  • Demonstrated weekly and daily analysis leading to a directional bias and target.

Conclusion

  • Reinforced the approach of using foundational trading models.
  • Emphasized continuous learning and building upon initial core content.
  • Addressed student concerns about advanced content and the learning process.
  • Highlighted the importance of patience and gradual learning in trading proficiency.

These notes offer a comprehensive summary of the lecture on Model No. 5, covering trading strategies, key concepts, and practical applications. Keep these insights in mind as you continue to study and apply trading techniques.

Full transcript