This video provides a trade breakdown of a Euro/Dollar trade the speaker took, emphasizing how to profitably trade against the trend using smart money concepts. The speaker demonstrates how to identify high-probability trades using higher timeframe analysis and lower timeframe confirmation, focusing on structure, demand, and supply zones.
Trading Against the Trend: Profitable trades can be made against the prevailing higher timeframe trend by carefully identifying and confirming potential counter-trend opportunities. This requires patience and a rigorous methodology.
Higher Timeframe Analysis: The foundation of successful trading lies in understanding the higher timeframe (weekly, daily) market narrative. Lower timeframes (15-minute, 1-minute) should be used for precise timing and confirmation, not for initiating trades.
Structure and Demand/Supply: Identifying and validating points of interest (POIs) using swing highs and lows, demand and supply zones, and liquidity are crucial for determining high-probability trade setups. Looking for areas where demand enters the market after supply fails provides strong signals.
Confirmation and Risk Management: Multiple confirmations are crucial, such as a change of character in lower timeframes after a break of structure in higher timeframes (e.g., a 4-hour change of character confirming a 15-minute break of structure). Knowing where to exit trades confidently, potentially taking partial profits along the way when trading counter-trend, is essential for risk management.
Session Timing: Consider session timing when entering and exiting trades. Avoid trading during periods of high volatility or market closure, particularly when counter-trending.
