Lecture Notes: Day Trading Model - Model 5

Overview

• Focus on Model 5: A day trading model.
• Upcoming detailed trading plans starting Jan 2020.
• Initial lesson review for new members; 2016-2017 members have access to all 12 models.
• Objectives: Understand inception of a move and its target.

Key Concepts

• Point of Origin: Establish criteria using fair value gaps (FVGs).

  • Fair Value Gaps are clear and easy to spot, similar to order blocks.

• Establishing Bias: Use higher time frame charts (weekly charts) to determine market bias.

  • Example: Weekly range expansion for high probability setups.

• Market Analysis Example: Dollar-CAD analysis.

  • Predicted a bearish market for Dollar-CAD: Look for liquidity draw at an old low.

Trading Strategy

• Bias Determination: Use higher time frame (weekly chart) to anticipate direction.

  • For Dollar-CAD, bias was bearish based on weekly range.

• Fair Value Gaps & Order Blocks: Central to Model 5 setups.

  • Consult fair value gaps after establishing bias.

• Entry Points: Use institutional order flow entry drill.

  • Focus on fair value gaps during kill zones (London, New York).

• Kill Zones: Different times can be used for trade entries.

  • London Kill Zone, New York Kill Zone, London Close, Asian Kill Zone.

Practical Examples

• Weekly Analysis: Dollar-CAD expected to reach old low.

  • Liquidity draw on old low, bearish momentum, looking for fair value gaps in lower half of the previous day's range.

• Daily Chart Analysis: Anticipate daily range expansion towards target.

  • Example: Dollar-CAD reaching for old low at 130.68.

• Standard Deviations: Use flout, standard deviations, and confluence areas for precise analysis.

Trading Setups

• Model 5 Goals: Target 40-50 pips per setup.

  • Can graduate to larger moves by leaving a portion of trade active.

• Refinement of Entries: Use confluence of intraday standard deviations for precise entries.

  • Example: Fair value gaps align with standard deviation levels.

Important Notes

• Understanding Price Action: Requires time and practice.

  • Aim to understand all models for complete price action understanding.

• Learning Approach: Gradual understanding and mastery over time.

  • Core content foundational; advanced understanding builds upon it.

• Market Analysis Example: Recent Dollar-CAD success based on Model 5 principles.

  • Precision in reaching anticipated lows, calibration, and liquidity sweeps.

Advanced Considerations

• Calibration Techniques: Align price levels for high probability targets.

  • Example: Seeking liquidity sweeps below set levels.

• Learning Environment: Continuous lessons and progressive learning.

  • Focus on core mentorship material and gradual introduction of advanced concepts.

• Professional Development: Not required to learn everything at once.

  • Encouragement to use core lessons for finding profitability.

• Feedback and Reflection: Continuous learning and adaptation.

  • Avoid overwhelming self with advanced concepts too quickly.

• Community and Growth: Mentorship is ongoing with a focus on long-term growth.

  • Goal is to understand and apply models effectively over time.