Simple Day Trading Strategy

Overview

This lecture explains a simple, repeatable day trading strategy using key price levels, timeframes, and confluences to improve trading accuracy and profitability.

Mindset & Common Mistakes

• Many traders overcomplicate their setups with too many indicators and strategies.
• Jumping from one strategy to another after losses leads to continuous failure.
• Focus should be on skill development—predicting price movement—not just making fast money.
• Consistency and understanding "why" behind price moves is key to becoming profitable.

The Simple Trading Strategy

• The strategy is built on four steps: establish daily bias, wait for key levels to be hit, look for a reversal, then enter on continuation, and exit at opposing key levels.
• Daily bias is determined by identifying high timeframe "draws on liquidity."
• Key levels include 1-hour highs/lows, 4-hour highs/lows, and session highs/lows.
• Wait for price to reach one of these key levels before considering an entry.
• After a key level is hit, look on lower timeframes (1-minute or 5-minute) for reversal signals.
• Reversal confluences include: inverse fair value gap, break of structure, or 79% Fibonacci extension closure.
• Don’t enter immediately after a reversal; wait for a continuation confluence (fair value gap, equilibrium, breaker block, or order block).
• Enter the trade upon confirming continuation; set stop-loss below recent lows/highs.
• Exit at the next significant opposing key level (previous high/low or session level).
• Consistent application of this method offers high probability trades in various markets (futures, indexes, forex).

Strategy Walkthrough (Example Recap)

• Mark significant highs and lows on the chart before the market opens.
• Watch for price to hit and react at these levels.
• Confirm low-timeframe reversals and continuation before entering.
• Target next major liquidity draw for exits; use risk-to-reward principles.

Key Terms & Definitions

• Daily Bias — A directional expectation for price movement on a given day.
• Draws on Liquidity — Price levels where large orders are likely to fill, often prompting reversals or accelerations.
• Key Levels — Highs/lows from relevant timeframes or sessions.
• Reversal Confluence — Signals suggesting a trend change (inverse fair value gap, break of structure, 79% extension).
• Continuation Confluence — Confirmations that a new trend is sustained (fair value gap, equilibrium, breaker block, order block).
• Break of Structure — A move where price breaks a previous high or low, indicating trend change.

Action Items / Next Steps

• Practice marking key levels (1H, 4H, and session highs/lows) on your charts.
• Backtest the entry/exit rules outlined using historical data.
• Watch the recommended free course for in-depth explanation of terms and strategy application.
• Commit to one strategy and practice consistently to build skill, not just chase profits.