Transcript for:
Trading Strategies and Concepts for US-30

so you want to trade us 30. maybe you've seen people get big profits flip accounts or how much money you can make with the 0.1 or you may be like me when I first started I saw a guy on IG flip 900 to 100K in three days trading us 30. my vision board is filled with us 30 profits for more experienced Traders than me for a long time I had pages of three figures four figures five figures six and seven figures profits in a day in my vision board I've made it to five figures in one day I haven't hit six figures yet but about two years ago I decided to focus on mastering us 30 and since then I've made six figures from us 30 alone as well as past all of my prop firm challenges that I took in the last year with us 30 alone in this video I'm going to share with you how I trade us-30 so that you can make a transition to trading it or another index like SPX 500 or Nas 100 or pick up some ideas you can add to your Arsenal in this video I want to cover four things number one on what is us-30 number two what moves it why does it move number three the strategy that I use day to day to make money number four how to increase your current win rate with us 30. now what is us-30 and what moves it us-30 is a stock market index that represents the performance of 30 large publicly owned companies from different sectors based in the US think about an All-Star basketball team the leaders from each team the leaders from each sector are placed in the U.S 30 index now why does us-30 exist it is in the name index which literally means it is a measure of something it is one of the widely followed stock market indices because it is used as a measure of the overall health of the U.S stock market and the overall economy the index is calculated using a price weighted method the stock prices of the 30 companies are added together and divided by a divisor to produce the index value changes in the stock prices of the companies impact the overall value of the us-30 now the Third 30 companies in the Dow are selected because they are considered leaders in their sector just think about the NBA All-Star Game you have the top five from the East and the top five from the west and if they play seriously we can use each team as an index to measure the health of the East and the West teams so that's sort of the concept the 30 companies in the Dow are selected because they are considered the leaders in their sector if any of the companies are underperforming a committee may replace it with another I'm telling you this because if you're going to trade us-30 and master it you should know these Basics now what moves us-30 it is important to understand what moves us-30 why is it so Dynamic and volatile why do we love it why does it move so much this is something that many people don't understand and makes it hard for them to trade it successfully the value changes a lot for this reason if the value of the companies within the index change the value of the index changes and the companies with the largest price if they change significantly it can cause the value of the index itself to change wait you may be asking why is this all relevant I'll tell you in a minute just keep watching so if we look at Friday August 4th us 30 took a massive dump look at the top stocks with the highest prices Apple United Health Group Home Depot Goldman Sachs and Microsoft they all took a dump on Friday the drop of these top stocks caused the index to drop many times when we look at us-30 we're looking at it like it's one stock but it's very dynamic because the different stocks that make up the index can fluctuate in one day and cause a lot of fake outs and volatility now why does this correlation happen at times right because the prices of the equity stocks respond to macro events like interest rates inflation unemployment Etc right so depending on the macro events and Institutional Investor may sell multiple stocks within the index but this is not always the case so us-30 is very Dynamic and very rewarding due to multiple factors that can impact the index on a day daily basis but two of the top stocks can be going in the opposite direction and cause the index to stall and when this happens you may not see the movement that you think you should so now on to the strategy now when people introduce strategies they hardly ever mention this part for the strategy to work the instrument that you're trading must move and in order to move there must be a catalyst something that causes it to move have you ever seen a candle like this with us-30 this doji there's no movement because there may be no Catalyst and there are two types of catalysts fundamental and Technical catalysts in this video I'm going to share a technical strategy that depends on a technical Catalyst for the earlier part of my career I only had technicals my trading was good but I've increased my Edge by also understanding the impact of fundamental catalysts we won't talk about fundamental catalysts in this video we will leave that for another time now let's get to the technicals they're truly mainly four types of Trades I'll explain which types of Trades my strategy works the best with but the four types are Trend continuation Trend termination support and resistance holding aka the range support and resistance breaking aka the breaking recess of the range this strategy works with all four but it's best used with the trend continuation termination for the breaking retest of the range so the strategy mainly is revolved around two words supply and demand if you want to see a full video on supply and demand watch this video now the basics of what you need to do is determine the trend First Look for your supply or demand zones and then shoot when price comes into your zones what is the most challenging part of this determining the direction of the trend but what is the supply and demand Zone let's get into that the supply zones are zones we sell from it's called Supply because a large amount of contracts will be sold from The Zone Supply refers to supply of contracts sort of like a sneaker reseller holding a supply of sneakers to sell we find these zones by watching for a period of consolidation followed by aggressive selling a large push to the downside this is the clue that is Left Behind for us to trade from The Zone when price returns to it now once we see this happen we wait for price to return to that zone even if structure is broken and it appears to be reversing going in the opposite way we will sell from that zone when price returns to it as seen here oftentimes institutions can't unload their positions all at once so they'll unload some of those positions push price higher again the push price back up to the supply Zone they'll get buyers in so that they can trade against them that's why this is effective this style happens very often now what is a demand Zone a demand Zone refers to zones where aggressive buying is occurring just imagine a large institution wants to purchase a lot of Supply at this level like currently the Chinese Tech Giants are rushing to buy as many of the Nvidia gpus as possible because there are concerns that the US could impose new export restrictions right so it is said that the Chinese purchases amount is 1 billion this year of those gpus and estimated to be 4 billion in 2024. the demand is high because of the fear of the restrictions man zone is where we see a strong amount of aggressive buying when these demand zones are printed it is an indication that there is a strong buyer there that would like to buy a lot of contracts so even if structure appears to be down trending when price returns back to those zones you will be looking for buys knowing that the institutions need people to trade from they need liquidity so oftentimes they will paint a picture that they are going in the opposite direction just to get Traders in so that they can trade against them we will look for tight periods of consolidation strong aggressive buying and then we will wait for price to return to these zones we will enter when price reaches the zones and gives us an entry confirmation now here are a few examples okay so here's a downtrend example um and as I mentioned something that's very very important is understanding what the higher trend is doing we had a trend termination here so the trend us-30 was trending upwards and then we had a reversal and this zone is going to give us signs of areas where we can get cells in now that the trend has reversed you see here price moved up and then we see a massive sale off it's breaking the support right here so price comes up back up to this uh back up to the zone and then we have a nice sell-off okay here's another example again understanding The Catalyst right so we are we were uptrending and here at the open of uh around the open of NY we had a massive push upwards right so only big large institutions can create movement like this so we have a huge move up and then price comes back down and eventually back into this demand zone for another move up and after that we'll see prices move aggressively uh and continue to to um to Trend upwards right so these uh demand zones are critical zones that if we can identify them and we understand the direction of the trend trade the man in the direction of the trend it could lead us to high probability trades so here's another example where price actually hit a resistance uh started to reverse we have consolidation massive bearish push down and then when price comes back into the supply we have confirmation to enter into a trade for a nice one to three again understanding the context is very important but just land down the foundation for more videos on this topic for this example for context the big picture Market is on an uptrend and if it broke a significant level so we see consolidation here massive push up only institution can do that so when price comes back to this demand Zone we have a slight push up here it fails but again we have confirmation for entry aggressive buying uh shows his hand at the open or near the open um pre-market right before the open you could enter into a buy back up to this level uh confidently when you see the footprint of the institutions and you know the higher time frame context these traits can lead to nice high probability trades with good risk to rewards so let's go back to catalyst so here the technical catalysts are the zones once you identify those strong zones and they align with the trend you can get high on our moves to increase your win rate in r r in another video we will talk about how to incorporate changing fundamentals now please like And subscribe if you want a free weekly market analysis join the Discord I also have a free prop firm course for all who join Discord if you want to see a more in-depth video covering supply and demand watch this video