Yo yo yo. What is good everybody?
Welcome back to Crabs Trades. Today
we're going to be doing a review of
standard deviations. How I use them, why
I use them, where to place the fib, and
we're going to be going over the
different ways to use standard
deviations in your trading, as well as
we're going to be reviewing some live
market examples, as well as we're going
to be going over some live market trades
that I actually took using standard
deviations. So, yeah, let's get into it.
Overall, make sure to watch this video
all the way until the end because I will
be dropping a ton of gems in between.
So, all that aside, let's get into it.
So, first of all, here are my fib
settings if anybody wants to screenshot.
What I'm looking for is some
accumulation, right? And I'll place my
fib at the low to the high of that
accumulation. And then I'll get my -2 to
-2.5 standard deviation. This is my
reversal fib, I call it. And as you can
see right here, price oftent times
consolidates at this level. And this
isn't just like BS. We're about to go
over the live market examples in just a
second. You can see how it kind of top
ticks just like that in the live market.
We'll review these in just one second,
but I'm just showing you guys that this
actually does happen in the market. It's
not just BS that I'm drawing up. But
yeah, you can see right there. We're
going to review those in just a second.
But let me get back to this. So, pretty
much what I'm looking for is
accumulation. I'll place my fib from the
low to the high of the move that started
the run higher, right? And then you can
see you get standard deviations
projected. My ideal levels where I like
reactions off of are -2.5 to -2 standard
deviations. You can see I got them
marked out as red here in my fib. And
that's just because it's a very very
good reversal level from the
accumulation. So you guys know that I
trade the ABS model and oftent times
that is based off of AMD type of
framework. So accumulation manipulation
manipulation into our standard deviation
levels and then oftent times we're going
to have that run lower. By the way, this
is also vice versa for a bullish
scenario. Just same exact thing just
opposite. And you can actually see here
I actually got two fibs drawn up. So
what is the second fib? Let's go over
that. That is the ABS rejection. And
what I look for there is the 1.5 to two
standard deviation. So if we look right
here, 1.5 to two standard deviation is
oftent times a zone that we're going to
get rejected before we put in the ABS,
the anticipatory breaker block, which a
breaker block is right here. high low
higher high took out liquidity 1.5
standard deviation run lower breaker
blocks validated and you can see we had
the run lower but overall the way that I
place this ABS rejection fib is
basically the same way on the
consolidation right you can place it on
the consolidation from high to the low
or you can place it on the leg that
started this run higher oftent times it
is also the accumul ation. So, it's kind
of vice versa for that. But yeah, you
can see from this level, we're about to
dive into the live market examples in a
second, but you can see from this zone
as well, we oftent times will retrace,
have that accumulation here,
manipulation higher into 1.5 standard
deviation and then dump. So, let's
actually take a closer look at this in a
different scenario. See right here. So
yeah, this is just how to place the fib.
Basically from
the low to the high. This is for the
manipulation fib right here or the
reversal fib, sorry, right there. You
can see we tap into standard deviation
levels -2 -2.5 and we have the reversal.
If we take a look at this, this is a
example of how to take a setup off of
the standard deviation. So yes, you can
just enter right off the standard
deviation like I did right here. Right
here you can see this is a live market
example from -2.25
standard deviation. This is like the
ideal like entry point. But you can see
you can top tick just like this as well.
Also here the executions um that I'm not
capping but you can just top tick it.
But it's always safer to wait on that
SMT to get put in which we're actually
going to look at examples in just one
second. But this is my ideal setup
overall with the standard deviations. So
we're going to have that negative -2
-2.5 standard deviation rejection. You
see we have that accumulation below,
right? And you can see how we place the
fib just like this. Whatever started
this run higher, we're going to place it
on this leg here, right there. And
oftent times that leg will also be
accumulation. And you can see that after
we hit the standard deviations, I always
wait SMT and inverse IFG or I kebab for
entry, stop at the SMT high for shorts
or you can top ticket. It is a bit
riskier to trade it like this when you
just limit order the level, but it does
play out here and there. You just need a
bit more discretion to do that. But I
would definitely recommend to just wait
on that SMT and that extra confirmation
just like this. But yeah, let's see.
Also for this scenario what you can use
is that ABS rejection. So ABS rejection
is 1.5 to two standard deviation. If we
take a look right here you can see that
oftent times we're going to do the same
thing right accumulate a bit and then
we're going to tap into 1.5 to two
standard deviation just like this. You
can see the reaction out that we had,
right? And then you can get a setup off
of that, whether it's SMT and then IFG
or whatever for shorts back down. But
let's actually take a look at the live
market example of this because it's
going to simplify everything. So, let's
actually take a look here first. We're
going to look at the reversal fibs right
here. Also, in this example, there
wasn't a clear like accumulation. It was
too high up to place the fib all the way
here. So, what you can do, I actually
highlighted it right here, is you can
place the fib on the candle that took
out liquidity and started the run
higher. So, as you can see right here,
standard deviations -2, -2.5 right
there. And you can see I placed my fib
just on that candle that started that
run higher that also took out liquidity
just like this. And you can see a
standard deviations hit there and
reversal, right? Let's take a look at
another example right here.
Right here you can see we have some
accumulation below. Not the most obvious
accumulation ever. Um but you can also
place the fib on just whatever started
to run higher. And this is a bit of
discretion needed. But you can do that
through back testing. You can build up
all that discretion. But you can see
here how -2 -2.5 here is supporting
price right reaction reaction reaction
reaction ended up pumping. So drawn
liquid drawn liquidity was higher but
you get the point right let's take a
look here this is a better example more
clear example we have the reversal fib
once again you can see we have this
accumulation right when I see
accumulation I always like putting my
fibs on accumulation because it just
gives a very clear levels you can see
also here
1.5 had a reaction but the main level
that I'm looking at is that -2 to -2.5 5
standard deviation. You can see it
bottom ticked right there, then ended up
having that run higher after. So, let's
actually take a look at another setup.
One more of these actually. You can see
same thing again, right? This happens
every single day. Accumulation right
here. Pretty obvious accumulation. These
are the best types of ranges to put your
fib on. Just like that. High to the low.
What are we looking for? -2 to -2.5
standard deviation. You can see bottom
ticked run higher. Right.
Let's take a look at another example.
Here is a more ABS style type of
rejection. You can see we had
accumulation manipulation higher. And
this literally looks exactly like what
we drew up, right? If we take a look
here,
see accumulation manipulation higher
into our standard deviations
as well as our ABS fib here. 1.5 to two
standard deviation. Get a setup for
short. Get a SMT or whatever.
Let's see.
Right there you can see SMT's in. And
for this APS fib, you can basically put
it on accumulation or you can put it on
the leg before the SMT pretty much just
like this 1.5 standard deviation hit and
dump. Right? So you can get in here off
of a IFG if you want some more
confirmation
just like this. Close below, stop at the
SMT high, target accumulation lows or
just target a one and two
risk-to-reward. Also, you can target
these standard deviation levels as well,
the negative -2. Um, but accumulation
lows are a great target as well. But
yeah, overall that is basically how I
use standard deviations in my trading.
Placing the fib, yes, it is a little bit
discretionary, but once you start to see
it in the live market, that's when you
can really um place your fib
consistently. But the easiest way to do
it if you're struggling struggling to
place your fib is just place it on
accumulation. You can also see that
sometimes these key levels won't get
hit, right? But you can see right here
we did have that negative 1.5 standard
deviation. So what can really help you
is waiting on the SMT as well to take
trades off of the standard deviations.
But if you want to top tick it, I would
say ideally just wait on that negative
-2 standard deviation, negative -2 to
negative -2.5 standard deviation because
that's how you can really get like those
top tick type of trades. They are a bit
riskier, but as long as you have very
high confidence in the drawn liquidity
and you placed your fib correctly, then
there's nothing to worry about. Uh yeah,
overall safest way to take trades off
the standard deviation is to wait on
that SMT and then some more
confirmation, which is what I usually do
on my funded accounts or any live
capital. But yeah, I mean that's
basically how I use standard deviations
on my trading. Very very simple. The
only thing for beginners is they
struggle with placing the fibs. So just
keep it simple. We'll just place it on
the accumulation and you can see how
precise the -2 to -2.5 standard
deviation is just like that. Let's see
here. Once again,
boom. Beautiful.
Once again, this example is a bit more
discretionary of the fib placement, but
when you just put it on that last candle
that sponsored the move higher, you can
see standard deviation still played out.
But yeah, that's overall how I use
standard deviations in my trading. I
don't want to keep this video too long.
It's a very very simple concept and it's
very very powerful when you align it
with other things. So align it with
other confluences as well. You know, add
a PRA as well. Boom, even better. A+.
Now, if you have a PRA here as well, if
you have OT of the higher time frame
range, boom, even better. And there you
go. A+ setup. A+ as ABS setup. But yeah,
I'm not going to keep you guys too long.
Just wanted to do a quick little video
on standing deviation since I kept
getting a ton of questions in my DMs
about this. So yeah, hope this helped.
And if you guys are still not yet
funded, if you're still a trader that's
struggling, you're not yet getting
consistent prop firm payouts. I just
launched my program where I guarantee to
work with you oneon-one until you're
funded over six figures with prop firms
and until you start to receive your
first ever prop firm payouts. if you
work with me for four months and you
don't get results, I will literally send
you $1,000 back. So, it's literally
risk- free and it's a win-win for you.
But yeah, if that's something you're
interested in, link for that is the
first link in the description below. All
that aside, thank you guys for watching.
Make sure to like, comment, subscribe,
comment any questions you have. If you
actually made it all the way till the
end of the video, comment the letter W
in the comments. Hope you guys learned
something today. If not, then a good
refresher for you. But yeah, standard
deviation super powerful. One of my
favorite confluences to use when aligned
with everything else. Super powerful
levels and you can basically top tick
with them as well if you use them
properly. But yeah, till next time.
Catch you guys. Love you all. Peace out.