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Day Trading Crash Course #2 ( Market Structure Rules )

Trades By Sci

24m 58s4,016 words~21 min read
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[0:00]What's good guys? So, we are back with another video. Today, we're going to go over market structure rules. So this is basically what I use to stay in the markets or stay out of the markets whenever the time being. And it's just overall good to have this in the back of your head so you're not lost because these rules will kind of give you an idea of what could be happening next when you're looking at the market and you're like, dang, I don't know what's going on. So these rules are going to help you eliminate that and then you're going to kind of know what's going on. We're not always going to be 100% right, but you're going to have a good idea so that way you know exactly what you're waiting for. Instead, most people kind of get on the charts and they think they're waiting for something, but it might never happen because that's not how structure works. So with this being said, let's go ahead and jump into the video. Remember everything that I do is for free. You don't have to pay me anything, so don't don't take signals, don't join any mentorships, don't join any courses. This is all you need and I'm going to help you out 100%. All you got to do is subscribe, like the video, and that's it. That's all I ask. With that being said, have an amazing day and I hope this works for you. All right, so let's jump into it. So for me, first and foremost, is the higher highs and higher lows and lower lows and lower highs. So whenever price makes a higher high, I'm already expecting for price to try to make a higher low. So me buying at a higher high is not the best idea at all, so that's number one. Not buying at a higher high because most likely after a higher high is made is going to look for a higher low, right? So, we talked about this a little bit about the when we was talking about trends, but I want to dig a little bit deeper into why I do everything. So if price makes a new high, I am not buying at this new high. I don't care if it's a, I don't care if it's like the biggest candle in the world, I'm I'm just going to leave it alone, right? And this also helps cuz later on we're going to talk about ICC where this is an indication, so you would never buy on the indication. The indication is the higher high. But let's not talk about that right now. Higher highs, we do not buy at, but higher lows, we are looking for a potential buy. Right? And we're going to talk more about um, time frame correlations and how to spot when prices is finishing up the higher low or finishing up the lower high. So in a downtrend, if price is downtrending, we are not selling we are not selling at this low. Right? We are not selling at this low. We are trying to find when price pulls back and creates this lower high and then goes back down, we're trying to sell over here, not the bottom. Same way with here, we're not trying to buy up here, we're trying to buy when price is fully pulls back. Right? And there will always be one of the other. So there will never be uh a higher high and no higher low. That that will never happen. So in this case, we would put over here, let's just type the same thing, not selling at a lower low. Mostly likely after a lower low is made, it's going to make a lower high, right? So it makes no sense to buy at a higher high and it makes no sense to sell at a lower low. These are some rules that I have, right? You can copy this, screenshot it if you need. So I'm going to put it right here. Screenshot it if you need, but these are two rules that I have when it comes to trying to find that trade. Right? So as you can see, here. All right, now let's jump into the second version. So whenever price is going up, let's let's just use the uptrend. Whenever price is going up, my main thing is to make sure that all the time frames align with each other. So whenever we're buying, we're trying to buy off of a higher low. So our buys should always come from a higher low, but it cannot be considered a higher low yet or finished until price on every time frame has bullish sentiment. So let's put this yellow line as the four-hour time frame. Right? Four-hour time frame. The four-hour time frame is looking bullish. Right? We cannot buy price when price is like this still, right? So this blue line, let's just say this is the one-hour time frame, right? The blue line is one-hour time. The yellow, so we're going to put this over here. Yellow for this one, four-hour, and then one-hour blue, right? So we cannot buy price yet if the blue isn't bullish yet. Now, when would the um blue be bullish when it starts picking back up and breaks above that higher high. And mind you, remember, whenever price makes a high, it's going to make a high or low. And that's where we take our position from, but we'll get more into entries later on in this course. But for the meantime, I want you to understand if you're going to place a trade, make sure all time frames match. Make sure all time frames align. I'll teach you more about this.

[6:01]I spelled it, but it's cool. It's whatever. Let's just do match. Right? I'll teach you more about this later on in the course with time frame correlation, but this is a rule that I have for myself that if nothing matches with each other, then nothing's pairing with each other. There's no like team, you need a team. In order for price to move, it can't just sell do it by itself. It needs multiple buyers, multiple sellers, depending on the trend. It needs multiple, multiple is a team, so remember that. Multiple team, multiple time frames. Sorry, I'm spelling the wrong word. Multiple time frames matches equals team. Price doesn't move solo, right?

[6:57]Price will not move solo. One time frame can't just be one like one time frame can't just be bearish or one time frame just can't be bullish. If one time frame is bullish, all the rest of them under it is bullish, vice versa. So make sure whenever you're placing a trade that all your time frames matches. Because the more it match, the stronger that trend is going to be. So start from the higher time frame, like I told you in the course course video one, make sure that when you're trading four-hour time frame, you can use daily. You can use four-hour, you can use one-hour, right? But when you're using these, make sure they match. Now, this daily one is a little bit trickier because this daily one is going to be tricky due to the fact that the daily takes a little bit more time than everything else. So I can't make this individual, but this daily is going to be a little bit more time. So if you struggle with the daily being a match because the daily is going to lag way more behind than the four-hour, one-hour. So instead of using this, you can take this out. Only use this on occasions. I'll break it down more later when you can use it, when not to use it, when to use it, but try this for now, right? Try the four-hour and the one-hour time frame and when you're trading, make sure they're matching. You can also add the 30-minute, right? If you want to, you can add a 30-minute, right? Make sure all these time frames align. So if the four-hour is down trending, you need to make sure that the one-hour is building lower highs and lower lows too as well. Right? So with all that being said, whenever you're trading in the trend, I also want you to remember when you are buying price, it is buying to a level of resistance. So I'm going to use an easy word for you guys, a resistance is how far price can go up. So it gets to a point and there's resistance, but if you want to use like the terminology I use, this is where sellers are at. Sellers, resistance. So you can say resistance, you can say sellers. I know some people say supply and demand and all these other things, but I like to keep it simple. Sellers are here. All I'm all all the market is is buyers and sellers. A bunch of buyers, a bunch of sellers, right? So resistance equals sellers, right? Sellers is what keep the market pushing down. Obviously, sales, sellers. Sales is going down. So when you're buying, think about it like this, trading is giving something to someone else for something, right? So trading is giving something to someone else for something. So if you're a buyer, you have buy orders. Right?

[10:00]You have buy orders. Sellers are sitting here. They're ready to sell. They have sell orders. So when you're buying, price is going to buy into those sell orders and y'all are going to swap. So depending on how many buy orders will also depend on if the sellers. So let's say, let's say the sellers want 10 orders, right? They want 10 orders. Let's say sellers want 10 orders. If the buyers only have let's say five, right? The moment that buyers get up to that selling point, sellers are going to be like, take this five, but you still need five more, but we're not going to let you pass because you don't have the rest of our cash. You don't have the rest of our orders that we need. So that's why you see when price hits a resistance, it starts to sell, right? And that's just a reaction, but remember, that's only to repeat what we talked about earlier. When price makes a high, what is it looking to make? A higher low. This higher low keeps everything afloat. Because this is only buyers going back to grab more orders. Right? So now they'll go back and grab more orders. They'll grab so if they came up with five the first time. That means they only have five more to go. They'll make a pull back to grab those five and come back up. Now, this time they actually might come with a little bit more, they might come with nine this time. They grabbed some more, come back with nine. So then they take out, but then they have even more to push past this. So that's why you see a new high. Because now they have more to push past that. So now they take out all these sellers. Once buyers take out sellers, they only have four more left and they use that last four for strength and they go into another level of sellers and it's just a rinse and repeat. So then they run into more sellers. These sellers want 20, right? So these sellers want 20. Buyers only have four. They give them 16 left. But this leaves the buyers with zero. So by the time they're up here, leaves the buyers with zero and they need another correction. They need to go grab more money, which is why you see price sell down because that's only buyers collecting more money to come back up. So this is where we come, right? Cuz we know, think about it like this, buyers came up here with four, right? They came up with four. Sellers said, no, you needed 20, but we'll take this four. Just go go get us 16 more and we'll let you through. Right? So buyers are doing that. So when price is correcting, in your mind, you should know that buyers are just looking to get back in, right? It's like, it's like, have you ever been at like a store or something and they're like, oh, you just need, um, you're a little bit short. You're like $2 short. And you're like, oh, let me go back to the car and grab $2. I have $2 in the car. What do you do? You paid the first 20, or you paid the first $4, but you still need 16 more. So you're like, okay, let me go back to the car and let me go grab it. We know you're coming back. So we know you're coming back. So when price is doing all this, when price makes the high and it's going, it's selling off and people think and people are scared and they think that it's selling off to go down to hell. That's not the case. Price is just pulling back to grab more money so that way when it's coming back, it can pay for it in full and go for more. Right? And go for more. So that's all a trend is. It's price, it goes up, tests the water, sees how much everything cost. Once it sees how much everything is cost, so it'll go up, see how much everything cost. Okay, it was $20. I gave him four. Let's go back for 16. Come back. We got 16. Let's say we got 18 this time, right? We go back up, we brought $18. We give the sellers the 16 that they want. Take them out. And we keep going. Right? And we only have two. So next level of people, we're going to need more money. And that's what a trend is. That's what the higher high and the higher lows is coming from. It's all a trend. Everything is a trend. Price is doing the same thing, but it's trying to elevate every single time. It's leveling up every single time. So remember, trading is giving something to someone for something else. Right? We're giving our buys. We're giving our buys to the sellers for a pass through. Vice versa with the downtrends too as well. So I'm not going to explain the downtrend part, but the same way with a downtrend will be the same thing. So once again, let's take this out. Remember, trading is trading something for something else. So if we're taking our buys up, we're giving it to sellers. So if we're selling, we're taking it to where buyers are at. Have you ever seen a support? This is as slow as it can go. Support. This is the support line. Like there's no other hope, atheist. If it keeps selling, it's just going to keep bleeding. So think about it like that, whenever you think of sales, think of blood, bleeding, is bleeding. Nothing's good. So you need a support line, you need a doctor, you need something to keep it up, keep it afloat, right? And buyers are going to be the ones to keep it afloat. Remember, let's think about a business, right? A business is basically investors or people investing into, like, let's think about investors, right? In order to keep a company afloat, there has to be customers. There has to be investors, right? So if a business doesn't have any customers, it's going to go downhill, wasting money, wasting money, losing money. But there can be investors or some support, some buyers to buy back in their price. So buy back in their business and this is what makes the bounce, right? Or price tries to bounce off of here, makes a lower high and it just falls through again. That money wasn't enough to hold up, right? So support is always like, buyers are needing, hey, if you want to keep this business afloat, they're paying, they're basically paying the bill. So this is the business going downhill. The business will come to the to the buyers. So buyers are here. The business will come to the buyers and tell them, hey, we're down $4,000. We're down $5,000. We're going to need $5,000 to keep this afloat. Buyers are going to be like, okay, just give me whatever you have and we'll pay for that and push you back up. If not, if they don't want it, if buyers don't think the company, or they don't think that it's worth it, then it's just going to keep pushing down. Because remember, everything in the market wants to go up. Remember this, everything, everything in the market wants to go up. Right? Everything in the market wants to go up. Everything. Everything that you trade, it wants to go up. But does do the economy see the value in it? That's that's what you're trading. You're trading if people actually see the value in what you're you're trading. So if you're trading gold and it's going down right now, people just don't see the value in gold right now. If it's going up, people see a lot of value. That's what gives things um price action. So that's why I always tell people, trade things where people want to see value in it. Trade thing where people find value because that value brings volume. So a value brings volume. Volume brings money, right? That's where you're going to make your bread and butter. Trade things that have value towards them. People find value in it because that's going to give you volume. Right? And if it's going down, that means that people don't see as much value in it right now and they're selling it, right? So you need to find, you know, levels where you can take advantage. You can always take advantage of sales too as well. Don't get me wrong. It's not always trying to buy price. If you think or if you think people are losing value of something, sell it, right? And there will be times where you see lower highs building up and you know, if price makes a lower high, what is it going to make next? A lower low. So when it comes to all this, I try to be very, very patient with things. Like right now on gold, we can break down gold right quick. Right now on gold, as you can see, we had price go into uptrend and then it made a lower high. This lower high ended up selling off completely. There is no correction that was made to make me think that, you know, it's good to sell down here. Why would I sell at a lower low? Once again, why would I sell at a lower low? The daily time frame is showing me one structure. If I jump on the four-hour, it was showing me another structure and then if I join on the one-hour, it was showing me another structure. So daily, four-hour, one-hour. Now you see how when I went off the daily, it ended up making me wait longer. So this is what I'm talking about when it comes to on trying to trade on that four-hour and one-hour time frame. That's where you'll catch the most moves. Um when it comes to, you know, swing trading, um week to week basis. So you can catch like one or two moves, um per week really. Like one move, two is like a good week. Um you can definitely catch it on the four-hour, one-hour. So four-hour, one-hour time frame for one to two trades a week. Right? This is what's going to get you right. This is going to get you like one or two trades per week, possibly, right? One's really good. One's really good. The daily time frame is where I'm at at this point. Um I've been trading off the daily and the four-hour time frame due to those um those moves that I just I wanted to catch big moves. I didn't catch this right here, this sell-off here. I was a little bit too um too late on that. But it's okay because the daily time frame has a new low. Now, since it has a new low, I'm looking for a correction. Now, will it happen in the next day or the following day after that? No. This is something that takes time. But what I do know, the information that I have collected is the fact that price came up high, sold off, had a level of support, broke his level of support. This is price making us indication towards the downside. Now, any movements up, I'll be monitoring it, watching it come up and then waiting for that push back down because now I know exactly where price is going. Price came to here and and buyers were like, okay, we'll keep you afloat. We'll give you this much money. Buyer gives gold $5,000 more to use to keep the metal afloat. Now, it is up to gold to build up off that structure and see if it's going to go on an up train because remember, everything in the market wants to have value and it wants to go up. But can it? Right? So market was given $5,000 to keep the metal afloat. You'll see some resistance, or you'll see some support kicking in. You'll see price try to buy up off of this, but if gold can't use this 5,000 for good and continue to go higher, if it can't manage it properly, then it's just going to fall down. But what it's going to do is it's going to try its best and then it's going to create a lower high, which is what we want. And then it'll fall down. Right? So with that being said, I um kind of got off crazy, crazy. But those are just some simple rules when it comes to price action for me. Um always trade things with value. Always or never trade off of a lower low or never trade off of a higher high. Those are two things that will put you in the wrong position like taking a sale down here would be very, very risky. Due to the fact that the daily hasn't had a correction, so there'll be a day where price fully corrects all the way back to like 4,800 and then you're stuck in that sale all the way at the bottom. Right? So those are some things that I pay attention to. Um not trading those, trading things that have value, also looking out for whenever price makes a lower low, it's trying to make a lower high. So being prepared for that too as well and being ready. So now that we know what part of the trend we're on, we know exactly what to look for. Okay, the next couple of days, we should see some green days come in, or something green come in to push price up and we're looking for that. So when it does happen, we're on our P's and Q's. Okay, price made that correction today, boom, let's focus. Right? So with all this being said, take your time. Like literally take your time when it comes to trading. You're not going to like you'll have your moment where you make 5,000 in a day or 10,000 in a day. But if you're a beginner, it's not going to happen this week, right? It's it's very, very, very, very rare. So get that out of your head. Take your time. Don't rush it. Wait. Be patient and and just focus, focus up. Right? Have a good day.

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