Lecture Notes: Trading Strategies and Market Analysis

Introduction

• Audio checks and initial casual comments.
• Introduction of the speaker and his son, Caleb.
• Acknowledgement of audience support and birthday wishes.
• Introduction to the topic of Turtle Soup.

Turtle Soup Explained

• Background: Inspired by the Turtle Traders led by Richard Dennis.
  • Turtle Traders were taught to trade a simple trend-following model which had low accuracy but high reward on successful trades.
  • Traded based on a 20-day high or low breakout.
• Turtle Soup: A reversal pattern that goes against the Turtle Trading strategy.
  • Relies on retail resistance, reversal, and discount market concepts.
  • Referenced in "Street Smarts" by Linda Rasch and Larry Connors, highlighting price action patterns.

Trading Sessions and Strategies

• Interactive Approach: Emphasis on learning through involvement and practice with Caleb.
• London and Asian Sessions:
  • Plans for live streaming the London session and strategies applicable to different timeframes.
  • Discussion on trading opportunities in different sessions (London, New York, Asian).
• Key Concepts:
  • Importance of understanding session ranges and market behavior.
  • Observing initial highs and lows to identify liquidity pools.

Trading Analysis Techniques

• New Day Opening Gaps:
  • Utilized to establish market bias and potential movements.
  • Key indicator for predicting market direction.
• Market Analysis:
  • Importance of clean charts to avoid distractions.
  • The role of time and inefficiencies in determining market moves.

Practical Application

• Chart Analysis:
  • Emphasized on identifying buy-side and sell-side liquidity.
  • Annotating charts to track market behavior and liquidity pools.

Closing Remarks

• Discussion on the importance of maintaining a clean chart.
• Plans for future lessons and addressing common questions from viewers.
• Encouragement for students to focus on one trade setup and avoid over-trading.
• Addressing the significance of various trading hours and managing expectations during different sessions.