About this video

• Video Title: $22k Day Forward Tested for Students on NQ During New York Session
• Channel: Wick Sauce Ro
• Speakers: Not explicitly mentioned in the transcript.
• Duration: 1 hour, 17 minutes, 3 seconds

Overview

This video provides a detailed, real-time analysis and forward testing of trading strategies on NQ (Nasdaq 100 futures) during the New York session. The speaker explains and demonstrates concepts like order flow, order blocks, liquidity, and market structure, showing how to identify and execute trades based on these principles. The core purpose is to educate viewers on how to analyze market movements, enter trades, manage risk, and potentially achieve significant profits.

Key takeaways

• Order Flow Analysis: The video emphasizes understanding and following the flow of orders in the market to predict price movements.
• Order Blocks and Liquidity: The speaker explains how to identify order blocks (areas of significant buying or selling pressure) and liquidity (areas where stop losses are likely to be triggered) to inform trading decisions.
• Market Structure and Trends: The importance of recognizing trends, higher highs, higher lows, and lower highs, lower lows is highlighted for market analysis.
• Trading Strategy Execution: The video demonstrates how to enter trades, set stop losses, and manage positions, including scaling into trades and taking profits.
• Risk Management: The speaker stresses the importance of risk management, position sizing, and mental preparedness when trading.
• Session-Specific Trading: The analysis focuses on trading during the New York session, acknowledging the impact of session volume and volatility.
• Identifying Trade Setups: The video illustrates how to find high-probability trade setups by combining various technical analysis concepts.

Here's a step-by-step guide to the trading strategy and concepts discussed in the video, elaborated with details from the transcript:

Step-by-Step Trading Strategy Guide

This guide synthesizes the concepts and trading methodology presented in the video.

Phase 1: Pre-Market Analysis & Setup

1. Identify the Trading Session: Focus on the New York session, recognizing its high volume and volatility, which presents more trading opportunities.
2. Determine Market Sentiment/Direction:
   • Higher Timeframe Bias: Start by looking at higher timeframes (e.g., 15-minute, 1-hour) to establish the overall trend and sentiment.
   • Identify Key Levels: Mark out significant areas of "balance" (consolidation or range-bound price action) and "imbalance" (strong directional moves that break through balance areas).
   • Order Blocks: Identify "bullish order blocks" (areas where buying pressure previously pushed prices higher) and "bearish order blocks" (areas where selling pressure previously pushed prices lower). These are crucial for entry and exit points.
   • Higher Highs/Lows & Lower Highs/Lows: Track these for trend confirmation. A trend is confirmed when price breaks previous highs (in an uptrend) or lows (in a downtrend) and respects these levels.

Phase 2: Trade Identification & Entry

1. Look for Failed Reversals (BIRs):

   • Definition: A "BIR" (Bearish Intent Reversal) is an area where sellers attempted to push the price down, but their momentum failed, and buyers stepped in. A successful BIR implies that price will move away from that area.
   • Identification: Look for a balance area being taken out by an imbalance, followed by a retest of that imbalance area. If price then fails to continue in the direction of the imbalance (i.e., sellers fail to push it lower after a bearish imbalance retest), it suggests a potential reversal.
   • Entry Signal: When a failed BIR occurs and is retested, and importantly, it's during the New York session with sufficient volume, it can signal a high-probability entry point.

2. Identify Alpha and Omega Entries:

   • Alpha Entry: This refers to the initial "break" or the first significant move that establishes a new trend or direction (e.g., the first higher low that breaks a previous high).
   • Omega Entry: This is a subsequent, often more conservative, entry point within the established trend, typically a retest of a key level or order block that confirms the trend's continuation.
   • Entry Strategy: The speaker looks for entries at these "alpha and omega" zones, especially when they align with other confirmations like retested order blocks or failed BIRs.

3. Confirm with Price Action and Volume:

   • Retest Confirmation: After identifying a potential entry zone (like a retested BIR or an order block), wait for price to react and confirm the expected move.
   • Candlestick Patterns: Look for bullish candles closing above key levels or bearish candles failing to break lower to reinforce the trade direction.
   • Volume Confirmation: While not explicitly detailed as a primary entry trigger in this part, the presence of volume during the New York session is considered supportive.

Phase 3: Trade Management & Exits

1. Set Stop Losses:

   • Initial Placement: Place stop losses logically, typically just below a significant low (for buys) or just above a significant high (for sells) that represents the failure point of the trade setup. For example, if entering a buy based on a bullish order block, the stop loss would be placed below that block.
   • Tightening Stops: As the trade moves favorably, move the stop loss to breakeven or into profit to protect gains. The speaker often moves stops to below recent higher lows (for buys) or above recent lower highs (for sells) once the trend is confirmed.
   • Risk Management: The amount risked per trade (e.g., a fixed dollar amount like "$1,000" or "a band") is a key consideration, especially in prop firm accounts.

2. Take Profits:

   • Targeting Key Levels: Aim for previous highs (in uptrends) or lows (in downtrends) that were part of the established trend.
   • Scaling Out: Consider closing partial positions at key levels to lock in some profits, especially if there's a potential for a reversal or significant retracement.
   • Ride the Trend: If the trade is performing well and market structure continues to confirm the trend, allow profits to run by adjusting stop losses to trail the price action. The goal is often to capture a significant portion of the trend move.

Phase 4: Post-Trade Analysis & Learning

1. Review Trades: Analyze executed trades, both winning and losing, to understand what worked, what didn't, and why. The video demonstrates this by reviewing past price action and comparing it to current analysis.
2. Adapt and Refine: Continuously refine the strategy based on market observations and trading results. The speaker notes that their analysis methods have evolved over time.
3. Stay Disciplined: Adhere to the trading plan, manage emotional responses, and avoid deviating from the strategy without sound reasoning.

Key Principles Highlighted:

• Context is Crucial: The success of a trade setup depends heavily on the context of the trading session, overall market sentiment, and the specific price action occurring at key levels.
• Patience: Wait for high-probability setups that align with the overall market narrative. Don't force trades.
• Adaptability: Be aware that markets can be unpredictable. While strategies aim for high probability, they don't guarantee outcomes. Adjustments and risk management are key.
• Mechanical Approach: The speaker aims for a mechanical approach to analysis and execution, relying on predefined rules and levels to reduce subjective decision-making.
• Sentiment Analysis: Understanding who is in control (buyers or sellers) and their conviction is as important as price levels themselves.