Lecture on Trading Strategies

Key Points

Importance of Candle Closures

• Candle closures are essential in trading.
• Avoid trading based on wicks; prefer candle closures for more reliable trades.
• Wicks can be risky and often lead to losses.

Liquidity and Order Flow

• Liquidity is crucial; be aware of order sitting around important levels.
• Monitor liquidity regions to avoid being caught in a false breakout or fake moves.

Identifying Break Structures

• Break structures require more than just a wick; a full candle closure is necessary.
• Confluences are needed to validate a break structure beyond just the visual break.

Trading Sessions

• Pay attention to the trading sessions when taking trades (e.g., New York, London).
• Trading strategies might change with different sessions, affecting liquidity and order flow.

Confluences for Trade Entries

• Having multiple confluences is critical for a successful trade entry.
• Build confluences around break structures, liquidity, and higher-time frame trends.

Risk Management

• Don't be greedy; take profits when they meet your R (Risk-Reward) criteria.
• Use partial profits to ensure gains are locked in while allowing the trade to run.

Use of Indicators and Tools

• Use session indicators like Lux Algo to mark up sessions and analyze trades effectively.
• Helps identify correct entries and losses based on session activity.

Psychological Aspects

• Follow structured rules without being influenced by the fear of missing out (FOMO).
• Greed and lack of preparation lead to poor trading decisions and losses.

Common Errors and Pitfalls

• Avoid entering trades without proper confluences, just based on visual patterns.
• Higher time frames can offer better insight than focusing solely on lower time frames.
• Be cautious with already mitigated supply and demand zones.

Practical Examples

• Examples were given regarding fake breakouts, sessions, and correct trade setups.
• Real-time analysis pointed out errors like trading with wicks and ignoring higher-time frame signals.