I Struggled with Trading, Until I Found This (Full Breakdown)

About this video

• Video Title: I Struggled with Trading, Until I Found This (Full Breakdown)
• Channel: AM Trades
• Speakers: Not explicitly mentioned, but appears to be a single narrator.
• Duration: 00:19:59

Overview

This video explains a three-step trading system designed to provide clarity and consistency in the markets. The narrator, having struggled for his first two years of trading, shares his solution to common trading problems like chart noise, attachment to predictions, and lack of structured entries. He breaks down his methodology, which focuses on relevant swings, daily profiling, and a defined entry signature, illustrating each step with trade breakdowns.

Key takeaways

• Address Chart Noise: Focus on one timeframe (daily chart), one swing (relevant swings), and one specific reaction to create clarity and filter out unnecessary information.
• React, Don't Predict: Shift from making predictions about market direction to reacting to the market's development and acting on confirmations.
• Structured Entries: Entries must be relative to previous steps (daily bias and confirmation) and occur within specific sessions (e.g., New York session) with defined rules.
• Three-Step System:
  1. Relevant Swings: Identify key highs and lows on the daily chart to establish a framework and bias.
  2. Daily Profiling: Analyze the development of the daily candle and session profiles (Asia, London) to confirm the bias.
  3. Entry Signature: Execute trades based on lower timeframe patterns and confirmations that align with the daily bias and profile.
• Trade Management: Focus on a fixed risk-to-reward ratio (e.g., 2R) for taking profits, with potential for dynamic management to capture larger moves.

The entry signature is the third step in the narrator's trading model, focusing on taking entries with defined rules and structure. It's about executing trades relative to the previous steps (daily bias and confirmation) and within a specific session, typically the New York session.

To identify the entry signature, you need to:

1. Have a defined daily bias and confirmation: This means you've completed Step 1 (Relevant Swings) and Step 2 (Daily Profiling), establishing a directional expectation for the day.
2. Focus on a specific session: The video emphasizes the New York session (8:00 AM Eastern and after) as the primary window for entries due to its higher probability for directional moves.
3. Look for lower timeframe signatures: Once the daily framework and confirmation are in place, drop to lower timeframes (like the 5-minute chart) to find specific patterns that signal entry.
4. Identify confluence: The video highlights a high confluence entry scenario:
   • Manipulation of short-term lows/highs: For example, price running out a short-term low at 9:30 AM.
   • Opposing candle formation: A signature candle after the manipulation.
   • Closure through down-close candles: Indicating a push in the expected direction.
   • Respecting specific levels: The entry should occur after these patterns form and be based on the expectation that the opposing swing (from the divergence or manipulation) will be respected.

Essentially, the entry signature is a specific pattern on a lower timeframe that confirms the larger directional bias and profiling, allowing for a precise entry into the expected market move.