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Simple entry (03 Step) using absorption candle.

The Forex Guide

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[0:00]Assalamualaikum, welcome to the forex guide. I am Ahmed Umair Akhtar. Viewers, whether you run a small shop, or you have an online business, or you do forex trading, one small principle applies to everyone. That is, you have to buy cheap to sell expensive. That is, your purchasing will be at cheaper rates, and you will sell it at a higher price. This is the basic principle of trade. Many times it happens, when we trade with our students, then we have only one rule. We wait for a good point of interest. Because we work in gold, so our method is, our strategy is that gold prices should be low. Gold should come to our good point of interest and from there we buy and then sell it at the resistance structure level. Sometimes it happens, as it happened in the past few days, that the price moves very quickly, whether it is bearish or bullish side, that you don't get a price retracement. That is, our method, you know, is that I will explain to you on the screen. That look, when we become part of any trend, whether it is a bullish trend or a bearish trend, then what is our method? That the price should retrace. Okay, the price should come to the lower levels where you have marked your point of interest. Point of interest is at two places. One point of interest is this place, which is your structure level, and then your confirmed higher low. That is, I am talking about a bullish trend, then when the price comes to your confirmed higher low and makes a good buy sign here, then this is the best place to buy. We look at the climactic action bar here, you know about it, we look at shakeouts, we look at no supply, no demand like things and from here we are buyers. The advantage of this to us is that our target is easily achieved here. But sometimes, there are such fast moves, as you have seen recently in gold, that the price does not stop and goes up without giving a big retracement. This is how it is happening. So how will you catch this move? If you leave it that the price is not retracing, then you can be deprived of a very big move. So its solution is with us Absorption Candle. That is, in VSA, it is part of our course and our trading strategy and recently we have used it a lot. We used it because the price was not giving a good retracement, it was not coming to our levels, but when the price does not come to our levels, then we use the absorption candle. Its advantage to you is that don't miss the move. You will not miss any move, whether it is bearish or bullish. Now how it is made, we will see it on the chart. It has only two rules. Absolutely, all our strategies are very simple, very easy and their rules are on your fingertips. Look, what happens is that whenever we are in a bullish trend, we will talk about that only because gold is currently strongly bullish.

[2:44]You have to mark your resistance. Its rules are very simple. What does resistance mean? Let me rather make candles here, it will be better. What happens is that these are our bullish candles. Okay, from where the price will resist. Now the price drops from here. From where the price is taking resistance and coming down, mark the highest pick there or whatever highest zone is being formed there, mark it like this. Okay, your resistance is marked, its highest point is marked. Now you have to see which candle has the highest volume at that place. That is, in the resistance that is being formed, whether there are four wicks, two wicks, ten wicks, mark the largest volume in that zone. We, for example, here, we suppose that the green candle, sorry, the red candle has the largest volume, and the green candle has a small volume. Okay, you have marked this. Now if the price comes to your lower levels, if it comes to your retracement levels, to the point of interest, then it is a very good thing, you will buy from there only. But many times it happens that the price goes up from the top itself. It gives a breakout like this. So in this, how will you catch this move? Its solution is with us Absorption Candle. Don't miss the move. That is, the candle that is giving the breakout should be a momentum candle. We call it a breakout rule.

[4:16]Momentum candle, okay. The first rule is this. What is our second rule? Low volume breakout. Wherever you read VSA, wherever you hear about its rules, you will be told that big volume breakouts are valid.

[4:38]You must have heard this, we also used to work on this in the beginning. That is, when I used to trade alone, at that time. But its accuracy is very low. The method that I am telling you, that it should be a momentum candle and a low volume breakout, its accuracy you will see now, you will be surprised. We have traded on this live also, on Discord, in our live zoom trading, we have been working on this recently. Now what happened here, you saw that the candle that is giving the breakout, its volume should be small. This volume, I will rather show you in this way, this is a low volume. Now this volume, from whom do you have to measure it? From which candle do you have to compare it? So you have to compare it with whatever highest volume was in this range, in this place. Whatever range is being formed at the top, whatever highest volume was there, you have to compare it with that, if this breakout volume is smaller than that and it is a momentum candle, a momentum candle is this. Now its direction is bullish, it is going upwards. Okay, it should not have a very big wick on it. I will also tell you the rule, that the wick should not be more than 20% of its body. Generally, it is said that it should not be more than 10%. We also follow it, but you can also make it 20% because when your trend is strongly bullish, then it will be fine if you compromise a little bit. That is, the real thing, the ideal thing, is that the wick should not be more than 10% of the body. But even if it is up to 20%, it is fine.

[6:05]That is, if there is a small wick here, like this wick, it will work like this, a small wick is fine. Okay, now here, this is a simple rule. As soon as you trade, this is your entry point. I will show you its examples after this. This is your entry point. Your stop loss will be whatever low was made. The basic concept of the absorption candle, we teach in our class. It becomes a very long class. In that, we tell what is the concept of the absorption candle? Why is it made? Why should its volume be low? But leave all these things, you see how to trade. So this is its entry point, stop loss will be whatever low was made, before this breakout, whatever low was made, your stop loss will be at that low here, this is your entry point and you can hold it for 1:3, 1:4, 1:5, it goes even more than that.

[7:57]You can take it according to your wish. Look, in some videos, I will tell you one thing frankly, in some videos I said that you should save the trade at 1:1, 1:2, you should hold it and take profit on it. Now I don't tell this. Okay, the reason for that is that people are also happy that they are getting very long trades. So it's your wish, you can take 1:2, 3, 4, 5, you can take it according to your wish, according to the strength of the trend. Now let's go, we will see it on the chart. I have taken the most recent examples, of last week, so that you get an idea that when the trend is fast, how easy it is to make money. We turn on the volume. You don't need anything, just two simple things. Okay, now let's see here from this place, we start looking at it and backtest it. This is a resistance that was formed, okay, it has more examples behind it. I will see. Yes, there are examples behind it. Okay, well, let's start from here, we will find many examples above here. Let's start from the beginning. Look, what is in this? This is a big volume for you. Before that, there is a range for you, okay, the price was ranging behind it, it made a resistance, this is a recent resistance that was formed here. Now if you look in this resistance, then the biggest volume is here, let me zoom in on it so that you can understand every trade easily. Now this is the biggest volume for you, this one. Okay, this volume is coming, I have also put an arrow on it, this volume is showing in it. Okay, you have drawn a line above it. Its breakout has not happened yet, its breakout is happening here. You have to wait a little, of course, you have to wait for good entries to be formed.

[9:33]Now, the candle that gave the breakout, if you look at its volume, its volume is very small. With whom to compare? You have to compare it with this volume only. Whatever happens in between, you have to ignore it. You have to see that when the breakout happened, what was the volume of the breakout? So it is much smaller than this. So the two conditions that I told you, number one momentum candle and number two low volume. So look, it has a momentum candle and it is a low volume, so this is your entry point. Below it, whatever low was made, when this breakout happened, whatever low was made below the breakout, your stop loss will be there and this is your entry point and I will show you its result now. We will apply the PNL of each trade here. This is your entry point. This is your stop loss. In such a situation, we can also put the stop loss here. This is also safe.

[10:33]But sometimes some wicks can form, cautiously you keep it at the low, at the confirmed low that is forming at this place and now you take it as much as you want to hold it. You know that it is daily bullish, weekly bullish, I always tell you that you should hold it. Let's keep it at 1:2 for now, we will do it more later. So it gave you 1:2 comfortably here at this place. Okay, let's go to the next trade. Okay, after this, you have another resistance formed. Look, it is important for this resistance to be formed, it is important for such a resistance to come. Your next resistance after the breakout is forming at this place. Which is the biggest volume here? The biggest volume is coming in this candle here. The three-four candles that are at the top, you have to look in them. So the biggest volume is in the sell candle, this one. Okay, this is it, which I have marked. Its breakout is happening with this candle. Its volume is also small. Okay.

[11:30]Its volume below, check, it is very low volume. You have to compare it with this volume. Whatever happens in between, you have to ignore it. You have to see that when the breakout happened, the volume at the breakout was smaller than its volume, then it is valid.

[12:48]So here, I am saying this because behind you, you are seeing these green volumes, these ones. In this candle, there is the biggest volume. So don't get confused in this, it has not given any breakout. The candle that has given the breakout, you have to compare its volume and the volume of the wicks that were at the top, you have to compare them. If there is a difference between them, then you can buy. After that, look here, this one. Okay, which volume is this? This is this volume, this one. The one that gave the breakout, its volume is this one. Again, momentum candle, low volume, with whom to compare the volume? With the candle in this range. Your entry point, below stop loss and now you hold it, this also look how big a trade you are getting. Let's move on. After that, next breakout is happening here. Look, the first breakout was this one, this one. The second trade I told you, the third trade you are getting from here at this place. This is again resistance. Now when the resistance is formed, which candle gave the breakout? Let's see quickly. There are so many examples that the video will become very long. Okay, this is it. Look, which is the biggest volume here? From these candles, whichever it is. Okay, maybe it's this one, yes, exactly, this is the one I have marked. Its breakout is happening with this candle.

[14:10]Its volume is also small. Okay, when the breakout happened with a small volume, it is a momentum candle. This is your entry point, above it your stop loss, this is also running. Okay.

[14:23]And even if it does, at 1:1, at 1:2, at 1:1.5, there is nothing to worry about because you would have already got a successful trade before that. Let's move on. Look, your stop loss will come below this low. It did not hit the stop loss below this low here. Okay, after that, this is another resistance for you.

[14:50]Now after this, this resistance is forming. What is the volume of this resistance? This is the volume here, this one. Okay, and the candle that gave the breakout, its volume is this one. Now you must have understood its volume, its volume is this.

[17:36]From these three-four candles, there is some volume. Okay, and it is definitely visible to you that it is smaller than this volume. And it is also a momentum candle. Look, it is a momentum candle. There is no wick at all above it. So this is your entry point, stop loss will be at the low, and this is to ride the trend and take big long profits in it. These are the trades. Look, I am telling you again, this should be the case that when the price has gone up, then if it has left any point of interest behind and is tapping there, like the order block FVG behind it, the actual entry points are these. Here, shakeouts are happening. Look, as soon as the high of the shakeout breaks, you will trade. This is also a method, this is the best method, you trade at this low instead of this high. But if the price does not come here, for example, then you have this method too, the absorption candle one. You could not trade from here, then you can enter from here. This is so easy and so good method. If I show you the PNL of this trade also, like all others, which makes you happy, then the video will also become long and the ratio will also be 1:20. Okay, look further. Look, another example. This is a big volume. Okay, and it is in the third candle. So at the third number volume, a big volume has come. Its breakout, look, its breakout is happening with a low volume, this is a momentum candle and low volume, this is your entry point, below it your stop loss and this is also running. Okay. Look further. This is exactly of this time, yes, it is live market at this time. What day is it today? Today is Monday. It's Monday, and it's around 6:15 or 6:30 in the evening. You can backtest it. I am telling you live trade like this. Of course, you will see this video recorded, but at this time our absorption candle trade is running. How is that? If you note here, these are your big volumes, this one. Okay, whatever volume you want to count in it, whatever is the biggest volume, when its breakout happened today, look. So the breakout volumes are small, compared to these, they are small. Okay. So from here, your entry is, below it your stop loss is 1:2, this will also give. At least 1:1, I think it has already given. That is, your trade has been successful. If you take from here also, then 1:1, it has almost given. Look, this is it. This 1:1, it has given above it. So it is possible that it will give 1:2, 1:3, 1:6, whatever it is. Your trade has been successful. So this is the method. Now in this, some people ask that you don't sell. That's why I always forbid selling. Those who had put sell, sell, sell, they all have either washed their accounts or are now just sitting worried. However, the method of selling is also the same. I will go back to where the trend needs to be especially taken care of. This is a bullish trend, so I am showing you bullish examples. When the prices were in a downtrend, in those days, or when a good retracement was coming, as you can see here. When prices are breaking their lows and coming down, then the same method is applied. Look, this is resistance for you, at resistance, the biggest volume is this one. And its breakout is happening with a momentum candle. Remember here, this is not a momentum candle. The wick is quite big. If you get even one momentum candle after this, then it's fine. This momentum candle formed, this also formed, this also formed. From wherever you want, you can take entry from this zone. Put stop loss above this high and take 1:2. Okay. Just trust is needed, people don't trust. And those who say that the risk-reward ratio is not good in VSA, this is absolutely false, a very absurd thing. I don't answer this at all. People comment, I don't answer because they don't know, what to explain to a person who doesn't know. Otherwise, its risk-reward ratio is as good as the volume, maybe you won't find any other method like this in the world. I always say about my strategy that it is one of the best strategies in the world. Okay, now this is again resistance, look, big volumes have come. These are big volumes at this place. Look, these big volumes are coming. Okay, this is resistance for you. So at this resistance, these are big volumes. When it broke, with this candle, with the momentum candle. Its volume is this one. Look, it is breaking out with a small volume, momentum candle has come, this is your sell entry, above it is your stop loss, and this is again 1:1, whatever you want, as much as you want to take it. I used to say that you people should earn little by little, take your 1:1, 1:2, according to your wish, but if someone wants to hold it for a long time, then I have no problem.

[21:58]Yes, look, this is 1:2, 1:4. Whatever it is. So it's so easy, so wonderful trade, then the trend will change, now you start looking at the absorption candles of buying. The same thing works in the same way. It will not work in range because strategies do not work in range. In range, you have to look at the lows. From the low of the range, buy and sell from the top of the range. Or if you don't want to sell gold, then don't. So this is the method. I have shown you about 10-20 examples of it. Maybe 10 examples in total. In such a good way and so easily, if someone cannot trade, then we cannot do anything more for him. We will meet inshallah in the next video, until then, goodbye.

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