Lesson 8: Integrating Day Trades with Higher Time Frame Trade Entries

Introduction

• Focus on integrating day trades with higher time frame entries.
• Revisiting Power 3: Open, rally/decline, close.
• Day trading entries can support longer-term trades with minimal analysis.

Key Concepts

Power 3

• Bullish Day:
  • Open near the low, small wick below.
  • Expansion move up, close slightly off the high.
• Bearish Day:
  • Open near the high, small wick above.
  • Expansion move down, close off the low.
• Open near one range extreme, close near the other.

Trading Without the London Kill Zone

• Not necessary for day traders or higher time frame setups.
• Two essential daily times: Zero GMT and Midnight New York.

Daily Candle Insights

• Daily candle can determine ideal entries.
• Zero GMT is a calibration time globally for entries.
• Emphasis on opening prices for setting trades.

Integrating Day Trading Techniques

• Direction of Bias:
  • Determine if price is moving from a discount to premium or vice versa.
• PD Array Matrix:
  • Helps understand buyer/seller bias.

Trading Strategies

Buying Strategy

• Use Zero GMT as reference for buying.
• Buy near the low or opening if expecting an up close.
• Stop set using a five-day average daily range.

Selling Strategy

• Use Zero GMT as a reference for selling.
• Sell near the high or opening if expecting a down close.
• Stop set using a five-day average daily range.

Practical Application

• Zero GMT Buying:
  • Buy at Zero GMT.
  • Use a five-day average daily range as a stop.
• Zero GMT Selling:
  • Sell at Zero GMT.
  • Set limit orders and stops using average daily range.

Homework

• Find three examples of this concept:
  • One successful buy.
  • One successful sell.
  • One failed example (either buy or sell).
• Share on the forum with details including pair, movement, and outcomes.

Conclusion

• Utilize these day trading concepts to enhance higher time frame entries.
• Example sharing encourages practical understanding and application.