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My Exact 1 Minute Scalping Strategy For Prop Firms (Ful… — Transcript

A detailed 1-minute scalping strategy walkthrough for prop firm traders, covering market structure, liquidity, and trade management.

Key Takeaways

  • Use a top-down approach starting from daily to 1-minute timeframe for precise trade setups.
  • Identify market structure shifts and liquidity pools to anticipate trend continuation or reversal.
  • Combine mechanical rules with discretionary judgment based on price action and order flow.
  • Risk and trade management are critical for consistent scalping success.
  • Psychology and trader readiness influence when to take or avoid trades.

Summary

  • Complete practical workshop on trading candle by candle on the 1-minute timeframe over 2 weeks.
  • Combines previous guides on profitable trading components into a full live market walkthrough.
  • Covers top-down analysis including daily and 4-hour timeframes to identify trend, liquidity, and points of interest.
  • Explains market structure shifts, supply and demand zones, liquidity inducement, and mitigation.
  • Discusses when to use mechanical trading versus intuition and discretion.
  • Shares the exact strategy used for 1.5 years with a documented 59.5% gain in public signals.
  • Emphasizes quick higher timeframe analysis to find trend and key levels before zooming into lower timeframes.
  • Highlights the importance of understanding order flow and liquidity cycles to anticipate market moves.
  • Details risk and trade management strategies tailored for scalping on the 1-minute chart.
  • Addresses psychological aspects and when to take trades based on market context and personal readiness.

Full Transcript — Download SRT & Markdown

00:00
Speaker A
What we're going to do today is a complete practical workshop where you get to take a look inside my mind on exactly how I trade candle by candle on the one minute time frame for 2 weeks straight. Over the last few months,
00:12
Speaker A
we've done many guides together on many of the essential components to profitable trading. But today, we're going to be bringing it all together where whatever price action develops, we're going to go back and refer to one of the guides and see how it applies in
00:23
Speaker A
the live market. And you're going to see the raw truths of trading. How to do a top- down analysis. How to understand what daily cycle presents. Which trade model to deploy, when your psychology comes into play, risk management
00:34
Speaker A
strategies, trade management strategies, when to be completely mechanical, and when to allow intuition and discretion.
00:39
Speaker A
This is an entire walkthrough on how to actually trade the markets. And by the way, this is the exact same strategies that I've been using for the last one and a half years for my public signals, my public track record where I call my
00:50
Speaker A
trades live ahead of time. And I've documented 59.5% gain. And today I'm going to reveal it all. Okay, so let's start off on the daily time frame. We see a lot of dots on the screen, but let's make some clarity on it. So we can
01:01
Speaker A
see initially there was bearish price action from all of these red dots where we have lower lows, lower highs, lower lows, lower highs, and then that trend continues on. Then we arrive to this bullish portion where we are getting a
01:12
Speaker A
sequence of higher highs and higher lows. So when we see this bullish price action that goes on to take these highs and then lead to a break of structure, then we see a market structure shift bearish. So we look left and we see okay
01:24
Speaker A
have we come off an important supply level potentially. So we don't know but we're coming into a level and getting a bearish reaction and price is holding that level and not going higher taking out internal structure making internal
01:36
Speaker A
trends. But then we also see that we get buildup of liquidity inducement mitigation and continuation bullish. So we think is price going to break out over here after grabbing this liquidity we have to understand what was the real
01:47
Speaker A
inducement versus who's actually in control. So when we see that this break of structure leads to a failed higher high in fact it respects the previous area that led to a bearish break of structure. Price comes in gives a new
01:59
Speaker A
leg of lower low. And reading into all of this now we see that the sellers are in control after taking liquidity of this previous high and we see all of the bearish order flow became liquidity. All of this ascending trend line became
02:10
Speaker A
liquidity when we tapped into that supply zone to mitigate the previous area that made the break of structure after hitting a zone of supply on the left. When we arrive to this lower low in the market, then what do you expect?
02:22
Speaker A
Well, we know that we've had a bearish push down. We've made a lower low compared to previous lows. A new low is made. So, you'd expect a complex pull back up to somewhere in this level and then continuing lower. That's what would
02:32
Speaker A
make sense if you only traded market structure. And why would that be is because you've had a bearish push down and then a second bearish push down. So, you would just assume just from market structure, you'd have another supply
02:42
Speaker A
zone in this area cuz this lower high made this lower low. This lower high made this lower low. So somewhere in this area, we should make a new lower low. That's not what happened because liquidity showed us otherwise. When we
02:53
Speaker A
see there's a buildup over here, an inducement low, a bullish push out to break structure on the left, a mitigation over here to fail to make a lower low, we've now seen a complete liquidity cycle. Buildup, inducement, mitigation with pushes out. And that
03:07
Speaker A
complex pullback starts a new trend where we're taking out areas of supply and forming higher highs, higher lows.
03:14
Speaker A
We tap into this area of supply on the left. What happens? We invite in sellers with some bearish candles, some dogee candles, some indecision candles and then buyers take control. So once buyers have taken control, we need to
03:25
Speaker A
understand what's going on next. Are we simply grabbing liquidity of these highs or are we now continuing the bullish trend that we found where we have this low in the market, this higher high, this higher low and now forming a higher
03:39
Speaker A
high. Who is in control? We need to understand it because market structure is now at a unique point where we don't know. Are we completely bullish or are we just grabbing liquidity and we're going to continue bearish? Was this
03:49
Speaker A
range over here a sellers trap? Was it a reaccumulation? We need to understand what's going on because a lot of things can happen. This could be a sweep and then price comes lower. This could be a break test continuation. There are so
04:00
Speaker A
many variations. So, we need to dig lower time frames to understand what's going on. Now, from one of the guides, you'll remember what exactly do we do on the daily time frame because it's a quick glance. We shouldn't spend more
04:09
Speaker A
than one or two minutes on the higher time frame. And what are we trying to achieve? Three very specific things.
04:13
Speaker A
We're trying to understand trend. We're trying to understand points of interest and liquidity. A quick glance and then we move down time frame. And the way that I've been teaching you is find main pushes. So this low in the market has
04:24
Speaker A
led to this high in the market. And therefore we have found an external trading range because we have gone from a lower low in the market to making a higher high breaking a previous higher low to make a higher high whilst
04:36
Speaker A
trapping people in this area because people were invited in based on the market structure read. Now we need to understand as we zoom into relevant price action. Have we found a potential supply zone over here that price is
04:46
Speaker A
going to react towards because we may have now had a high in the market that has now bearish push down retracement to this extreme and then we continue lower maybe to this level and maybe continue bullish or this was all a run of
05:00
Speaker A
liquidity now to continue bearish. This is the daily time frame so it's a lot to call in the moment but for now all we can understand is we have a potential supply zone over here. The nearest demand is going to be this block over
05:10
Speaker A
here. And by the way, the daily time frame is not my preferred place to be.
05:13
Speaker A
These are massive zones, not overly precise and not really giving much direction. And in terms of liquidity, we just look left and see where we are. And we see we've grabbed liquidity of the previous supply zone that was holding
05:24
Speaker A
price. So I see liquidity has been taken of this structure point and we are also arriving to this other supply zone. I need to understand was that relevant and why am I interested in this area at all is because this area of a lower high
05:37
Speaker A
made this lower low. So structurally relevant whilst grabbing liquidity of the previous lower high. That's where we are arriving to now. And when I do a quick glance at it, I can also see it meets some of the criteria that I like
05:49
Speaker A
which is it had a buildup of liquidity. It had an inducement that led to the push lower. So we know we are in the right area in terms of supply. When we come back to this area, we now need to
05:58
Speaker A
understand has this supply zone induced this liquidity to make a bearish reaction to come lower or are we still bullish. This is to be determined. So therefore, we found trend overall we are bullish. We found points of interest,
06:09
Speaker A
supply and demand zones and we found a liquidity pool and main inducement. Now let's go down to the next time frame to connect things together to build the framework for the next two weeks of M1 walkthrough. Now as I jump to the 4our,
06:20
Speaker A
I'm going to do the same thing again. And with this condensed price action, I'm looking for trend. I'm looking for liquidity and points of interest. So, as I connect these dots together on this time frame, I'm seeing that we had this
06:30
Speaker A
higher time frame inducement hitting a supply zone. And we can now start to refine the supply zone that we've found from the daily. For now, on the 4 hour to this area, but probably even further on the 1 hour and the 15-minut time
06:41
Speaker A
frame. So, I'll leave it ambiguous for now based on just an order block over here, not the way to actually refine a supply zone, but we'll do that as we get to lower time frames. And then we also
06:50
Speaker A
have this demand area that price hit. And we can actually refine it a little bit further and say, well, we've hit the top of the demand, but the real demand is actually down here. The reason I say that is because this is where we've left
07:00
Speaker A
an imbalance after we've had a buildup inducement mitigation. So, we've had a liquidity cycle over here with volume shown by that imbalance. So, therefore, this 4hour refinement shows us that we haven't reached a maximum point on either the supply zone or the demand
07:15
Speaker A
area. We have a lot more space. So therefore conclusive trend is not established because we could come higher to this supply zone or we could come lower to this demand area. And these things do connect by the way because we
07:26
Speaker A
could now continue bullish to this supply zone and then go down to this demand area and then see what happens next. Maybe higher or maybe bounce and break the level. So an external supply and demand is not conclusive. You look
07:37
Speaker A
at internal. So therefore take a closer look at what is the 4hour main push. The 4hour main push is here where we have this higher low that went on to make this internal higher high. And when we do a quick market structure read, we can
07:49
Speaker A
start to see that we had this higher low over here that went on to have breaks of structure down here. So therefore, with that bearish break of structure, we can start to see that the sellers took control made this low in the market from
07:59
Speaker A
that push down and then it could have gone on to make lower lows and continue lower, but it didn't cuz when it hit these supply levels, it made an internal low by grabbing liquidity inducing and making a bullish push out. So therefore
08:11
Speaker A
we have found an internal break of structure therefore showing buyers took control and we originated from that liquidity over here. So we found an inducement buildup inducement bullish push out higher low higher higher low higher high clearly buyers in control
08:26
Speaker A
but also creating a new buildup of trend line liquidity and then when price comes into that trend line zone we get a bullish engulfing candle which then gets taken out. We trapped in trend line traders and therefore this became an
08:38
Speaker A
inducement of the buildup over here leading to this bullish push out. Now we are starting to paint a picture of control because this inducement over here led to a bullish breaker structure.
08:48
Speaker A
Then we had this buildup as we were going bullish that had an inducement and led to this bullish break of structure.
08:54
Speaker A
So now that we found our most recent main push, we have also found the inducement of control. And therefore we can now understand where are the points of interest where we have this demand area over here at the discount of our
09:05
Speaker A
main push on the 4hour from higher low to higher high. We have a 4-hour main push with external high external low.
09:12
Speaker A
The external low is a demand area that had an inducement inside of it. Therefore showing us that the buyers are in control and the buyers will be in control until we arrive to a refined supply zone which is up here. And this
09:22
Speaker A
was remember a higher time frame major inducements hitting a supply zone. So this area could be important but we also have to remember it is factually a higher high. So this is a higher high that could be supply. So we need to see
09:34
Speaker A
later on as we bullish climb up into this area. Are we going to buy into the supply zone or is it just a higher high and we continue buying or we see signs of seller strength because it is a
09:45
Speaker A
supply zone. Structure gets confusing alone. So we'll layer it with other things as we arrive there. Okay. And that's our job done for the 4 hours. So now we quickly go down to the intraday time frame. That is the 15-minut time
09:55
Speaker A
frame. And we do the same thing again. We find our external ranges with structure, liquidity, and points of interest. So what I can start to see very quickly is that when we had this bullish push out and break of structure
10:04
Speaker A
formed to make this external range high, we grabbed liquidity. We had an inducement and a push down. This area hits demand. And after another small inducement over here with that inducement, we had the fuel to come lower, hitting this demand area. Right
10:17
Speaker A
now we can see sellers are in control as we arrive to this decisional area because that's the area that led to the breaker structure. So we are now in a mixed zone. We need to understand who's in control. It's also pretty interesting
10:27
Speaker A
to see as we have this price action form that this previous buildup and this inducement over here that led to the bullish push out had the mitigation that allowed price to come higher. This was a complete liquidity cycle that led to a
10:42
Speaker A
higher high purpose complete. Once we had that purpose complete of that previous liquidity cycle, this inducement over here and this inducement over here made this remaining area a trap, a smart money trap because we had buildup inducement. Smart money traders
10:56
Speaker A
wait for this area. They wait for this sweep once again to a previous sweep zone. They see this bullish price action, the engulfing, the bullish, the trend line. They look to buy and then they get taken out. Why? Because a smart
11:07
Speaker A
money trap was created and this seller's inducement was in control. And that's exactly how we're going to read price action by understanding inducements to see who's in control because we have a supply zone inducement potentially. And the reason I say potentially is because
11:20
Speaker A
it didn't lead to a full break of structure just yet. We had a supply zone that was an inducement that led to internal bearish price action, but it hit a decision demand. So therefore, decisional demand could make a new
11:30
Speaker A
higher high. So we have to see who's in control because yes, it is an inducement that led to bearish, but it also arrives to the efficiency of the pullback from the structure cycle videos. As you may remember the full guide where we broke
11:40
Speaker A
down how to correctly read market structure. So when we have that mixed read, the only thing we can do is drop time frames and see who's in control. So this is when I turn on my custom indicator where I can see the session
11:50
Speaker A
timings, the Asia ranges, the key windows, the high of previous day, low of previous day, all the key things that I look for. And let's see how we arrive to the beginning of the month and start the new day off. So I'm going to go and
12:00
Speaker A
see how Frankfurt presents and wait for my key window which is London. As we arrive to my London key window, it's interesting to see how we've come deeper into this demand area. And not only have we come deeper into demand, we've taken
12:11
Speaker A
liquidity, which you can see on my indicator, low of previous day. The lowest point of yesterday was induced and swept over here. So, let's do a lower time frame read on exactly what is going on. Is this induced meaningful or
12:23
Speaker A
is it just a lower low in the market? From the video of how to read Asia range, you'll realize that information in the Asia range is critically important and not to be missed out. Make sure you go watch that guide. Otherwise,
12:33
Speaker A
you're going to be ignoring information that is important during the Asia range. And what I can take from this is that we had this bearish channel. We had this small inducement over here. Another small inducement over here. And another
12:43
Speaker A
small inducement over here. What were they doing? Allowing price to come higher. Price hit supply of lower high that made an internal lower low.
12:52
Speaker A
Therefore, these small inducements were just to come higher and then another mitigation into this previous inducement zone to finally bring price to this highest point. Once price has reached the highest point, you see that it simply respected a level of supply after
13:06
Speaker A
inducing some liquidity on the left and therefore I need to understand that this inducement which is an inducement in the moment could also be a trap. So I need to confirm that later on. And when I see how price is presenting after, we see
13:18
Speaker A
that the sellers take control because they induce lead to a break of structure printing our Asia low liquidity which is all swept during the Frankfurt open and then pushing out aggressively towards London. So what I'm reading from this is
13:32
Speaker A
that this area has now printed a smart money trap because it's Asia high because we have arrived to a demand area and done an inducement with a strong reaction. Now the reason I can say this is a trap with decent confidence is
13:43
Speaker A
number one we have a sweep into demand. So therefore even though this was an inducement it served its purpose by coming into demand. Now the buyers have taken control cuz it's a demand area.
13:52
Speaker A
They've swept to show intent Asia range lower previous day and also coming into a demand area and then a meaningful reaction out. So therefore this might invite in sellers who will just get taken out because it will be a shortlive
14:04
Speaker A
reaction before a spike higher. The principles of a smart money trap. And when I take a even closer look on how on the M1 things presented, price did a buildup inducement to mitigate the previous inducement into the demand
14:16
Speaker A
area. So we can see buyers are starting to take control and they continue to maintain it because there is another small buildup over here and another very small inducement showing me that the buyers are maintaining control. A few
14:29
Speaker A
consecutive mitigations over here maintaining control. So there's no sellers strength coming into this area despite us grabbing potential liquidity of this trend line of these highs. When this liquidity is taken, sellers show no strength. Buyers maintain. So this is
14:44
Speaker A
encouraging me through this London session, we should pierce through this smart money trap level. And as we arrive to that zone, we break through it without any resistance. So this is important. Now I've identified a smart money trap. But then this presents to
14:56
Speaker A
me, have I introduced liquidity now? because I've taken a smart money trap and I've taken Asia high liquidity. Am I going to see sellers strength for the session? And as I play it forward, I see one leg and it's in my key window, my
15:07
Speaker A
key time window. So, this is where I need to understand a few things. Where is my invalidation? So, a small portion of demand. Remember the M3 test. If it looks like something on M1, just quickly check on M3. Do you still see any
15:19
Speaker A
bullish candles? And we see slight consolidation over here. So, it marginally passes my M3 test. It's not real demand, but it's a very slight decisional. And I'm going to be conservative and say here is my invalidation for sells. And remember
15:31
Speaker A
this is me being very conservative because this is no real demand. And what I see when I arrive to here is I have an inducement of Asia high and an inducement of a smart money trap that forms a high in the market forms an
15:41
Speaker A
internal push down makes a lower high even though it should continue higher and then goes on to make a lower low. So as long as it doesn't reach my invalidation, I can potentially sell on a two-legg protocol around here. So
15:53
Speaker A
let's see what happens. Price taps into my invalidation and it's locked in. It's even closed off the imbalance on M1 which is a full invalidation to be conservative. Therefore, the two-leg protocol is gone. In fact, we even produced a three-leg protocol with the
16:07
Speaker A
third push over here and then the fourth push. So, the sell is gone for me. But in theory, if price did this second leg and then came into the supply zone, I would sell this with session volatility.
16:18
Speaker A
But that's why we have our invalidations. But that was a potential trade right here where it would have been a nice 5 pip stop loss and I'd sell it down to at least this area. And the power of intraession trading is that
16:28
Speaker A
even if the buyers are in control, remember we've come into a demand area and we've induced from the low of the day to the high of the day presently my 1 to3 riskreward is around the 50% retracement. So even if it's bullish
16:39
Speaker A
impulse, bearish retracement, bullish continuation and I get taken out of the trade, just that bearish portion down into the 50% is enough for me to lock in my partial 1 to3 riskreward. In this case, that did not play out. It reached
16:51
Speaker A
my invalidation. I'm just showing you where my head was at. Okay, now that we've reached our invalidation, this has also become a invalid zone for me. So, I'm just going to put it purple for trap. I'm no longer looking for sells,
17:01
Speaker A
but it doesn't mean I'm looking for buys either. I am now neutral as we come out of my key window. And my job is simply to wait for the New York window now. And we can see exactly what happened. It
17:10
Speaker A
came to the invalidation and then took out these sellers that were wrongfully trading. Why? Because the buyers are in control. We can see that from this inducement and that first liquidity grab did not invite in sellers. So, we look
17:19
Speaker A
for the next targets on the left. And when I come to the M15, I can start to see where could my next target be. That next target could be all the way up here. This supply zone that was an
17:28
Speaker A
inducement that led to a bearish push down could be my next target. So, I could be bullish all the way into this area and I'll need to consider and see what's going on in this area in case there's anything important. I'll put a
17:38
Speaker A
question mark cuz it needs to be confirmed. Now, let's come back to the M1 and see how we arrive to these zones in my New York window. Now okay as we arrive to the key window now we can
17:45
Speaker A
start to see that price did a internal higher high like so did an internal higher low and now let's investigate what exactly is going on what we can start to see price as it formed the internal lower low printed equal highs
17:57
Speaker A
liquidity and then this inducement push out mitigation became the fuel this is a 130 news event so something to avoid and when they build up liquidity to the high and do inducements and mitigations to the low we can see that the buyers took
18:11
Speaker A
control but we don't enter upon and we let a little bit of a cool off happen cuz we don't want to be fighting the news momentum. So, let's see with this bullish strength from news how it arrives into this first questionable
18:22
Speaker A
supply zone. Let's actually go and verify this zone first of all. Is it even relevant? And we can start to see it could be where we have a zone that has all of this buildup and then goes on
18:31
Speaker A
to have an inducement over here. And with that inducement, we have left an inducement supply zone with a nice imbalance over here leading to a bearish breakdown. So, we need to see is price going to arrive and react to this area
18:41
Speaker A
or is it just going to be a bullish New York session? The gray box is my key window. I want to see how we arrive there. And as we arrive to this key window, I'm starting to see, okay, it's
18:49
Speaker A
narrowly missed my objective, but we've potentially had an inducement. We've had a buildup over here, but we've had no bearish reaction because we are just maintaining this bullish order flow. So, I have had an inducement and no bearish
19:02
Speaker A
strength. So, this is not a good sign just yet, but let's see. Okay, then we have this internal mitigation and then we have a break of structure and make a lower low. So now I'm thinking, okay, this could be an interesting area to
19:14
Speaker A
potentially sell from and I can potentially sell it down to the previous demand area that was an inducement for news. So that can be my invalidation zone or at least a target for the sell.
19:23
Speaker A
This is against the trend. This is against overall inducements and the momentum that we've seen from the beginning of the day inducement into demand. Then we have another demand area formed over here. The buyers are in control, but we've had a bearish
19:34
Speaker A
inducement. So, we need to see is it worthwhile trading it despite going against the momentum of the day. So, when I look at this area and I do a pip count, I can start to see this is a
19:42
Speaker A
seven pip zone. It's on the slightly larger side, but I'm going to wait for confirmation in this area because it hasn't met my preferred supply zone and it's not fully convincing me because there is no imbalance in between these.
19:52
Speaker A
So, there is that internal mitigation. So, I want to confirm the zone. So, I'm going to wait for price to arrive in here and give me a confirmation in the time window to potentially sell down to here. Let's see what happens. So price
20:01
Speaker A
is already now making these internal low lows and now potentially the trade is gone. So when I see this order flow forming of trend line liquidity and these internal mitigations that are happening now I can see that the price
20:12
Speaker A
has already done the movement for the session. Remember the average session volatility can be 10 to 25 pips. So we've already had from the high of the session to the low of the session 20 pips. So already the session move has
20:21
Speaker A
happened. I don't want price to come all the way up here and then go all the way back down because when I do an analysis over here of the impulse from the lower to the high, we have already crossed the
20:30
Speaker A
50%. So, we could have had the bullish push up, bearish retracement to the 50%, and bullish continuation. So, I don't want to sell anymore for those two reasons. So, now I'm no longer looking at this area and I'm going to put it as
20:40
Speaker A
actually a weak zone. Purple meaning for me weak and potentially even a trap. Let's continue on in the session and see what happens next. So it's very interesting to see that we have a inducement of this previous level and
20:50
Speaker A
the inducement of that previous level leads to a internal push out mitigation bullish price action mitigation and then eventually a bullish pop. So when we zoom out for the day and see exactly what's happened yes we have now
21:02
Speaker A
completed our window but this trade was completely logical. In fact, it followed a very nice daily cycle variation where a demand area resting right below an Asia low and low of previous day. Sweep of low of previous day and Asia range
21:15
Speaker A
into demand and then bullish price action where we have consecutive bullish inducements. We had inducer number one over here. Inducer number two, inducement number three in this area and inducer number four. Consecutive bullish inducements and then no confirmation in
21:29
Speaker A
these supply areas. And now price arriving to this supply area. But it's the end of the day, not a trade for me.
21:34
Speaker A
So now let's swiftly move on to the next day. This is why time matters because I don't want to be entering trades during late New York session after London close or even in the Asia range. Now we arrive
21:43
Speaker A
to the next day and we have to see what's happening next. So we can see price came to these supply areas and failed. Didn't show any strength from sellers. Now I'm looking at this next supply zone over here. I'm thinking we
21:53
Speaker A
can target here potentially. So now I need to understand did taking out this level lead to an inducement? Have the sellers taken control or are we just coming back to this demand area? What's going to happen next? So now I found
22:04
Speaker A
supply zone to target, demand area to target based on this area over here that led to the bullish pushes out. It said decisional and now I need to understand because we are in the middle. We're in no man's land. We need to see structure
22:15
Speaker A
is neutral. Supply and demand is neutral. Inducements are showing us buyers are in control from 1 2 3. Now we need to see is there any sellers inducement to bring us lower or is it still bullish and we continue higher.
22:26
Speaker A
Let's read it on M1 from inducements. Well, like I can start to see that we have a low taken not only Asia low but equal lows and then a inducement potentially on Frankfurt open. Frankfurt open is a trap time for me. I don't
22:39
Speaker A
trust them at all. So I'm going to put this as SMC trap potentially. I don't know for sure, but the fact that we're not in a point of interest and it's a minute open Frankfurt open sweep, this gives me doubt and therefore I'm not
22:50
Speaker A
going to be trading it. As we do our regular Asia range read, we can start to see we took high of previous day liquidity. So therefore this is showing me sellers are in control and then once again over here a clear buildup of
22:59
Speaker A
liquidity trend line liquidity to target and then this inducement over here taking that control sweeping this liquidity to target this liquidity. Now once again we have a buildup of liquidity over here and I'm seeing the real inducement potentially this area.
23:12
Speaker A
Let's see. I'm not going to trade either of them but I'm seeing this more as a trap. Let's give it a few candles.
23:17
Speaker A
Bullish reaction to invite in smart money traders session open and bullish playing out. So, not every smart money trap actually plays out as a trap.
23:25
Speaker A
Remember, a broken clock is correct twice a day. If you look at a clock that's broken and it says 6:00 at 6:00 a.m. and 6 p.m. is correct, the rest of the day it's incorrect. So, just because it works sometimes doesn't mean it's
23:36
Speaker A
truth. And this for me is one of the weakest ways to trade smart money.
23:39
Speaker A
Therefore, becomes a smart money trap. When you have no point of interest and a Frankfurt open trade and inducements from the sellers presenting, I will never take that trade. Even if it was a London open trade on the minute,
23:50
Speaker A
mitigating that IFC, I'm not going to be trading that. That is not my strategy.
23:53
Speaker A
And as I always say, restricted trader is a profitable trader because this might play today, but more often than not, it will lead to losses that I don't want to have in my system. Now, as the rest of the London key window plays out,
24:03
Speaker A
I've already seen the intentional move of the session. It was this bullish push out. I'm not going to buy anymore cuz it doesn't meet my criteria and there's no reason to sell. So, I'm just going to let the session play out. And as I
24:12
Speaker A
arrive to my New York window, I'll evaluate what's happening, who's in control based on inducements and POIs.
24:16
Speaker A
Okay. As we arrive to my key window now, it looks like it's been an eventful London session. So, we can clearly see that was not the inducement of control.
24:22
Speaker A
In fact, the inducement of control was an invalid one for us. What we typically call a smart money trap. And then we can see that the buyers maintained control because we had all of these demand areas respecting one after the other after the
24:33
Speaker A
other where we can see the previous IFC is respecting. We can see that this complete bullish order flow that we have bullish push out comes to mitigate.
24:40
Speaker A
Bullish push out comes to mitigate. Bullish push out comes to mitigate. We can see buyers control and higher highs being formed. Then eventually a news release once again just after New York open causes this sweep and inducement and once that inducement happens we
24:53
Speaker A
target this smart money trap which was a sweep of liquidity but sweep of liquidity on Asia high for me is a trap and therefore that smart money trap got taken out because it is a sweep on Asia high and without context without a POI
25:06
Speaker A
so I'm not going to trade it and we can see that there's bias control from these inducements over here so therefore the sellers that were getting into this sell based on that supply zone on that sweep zone got trapped and news took everyone
25:16
Speaker A
out as our key window approaches and opens. Now it didn't reach our supply zone and it's coming to the territory of this previous inducement zone. So I need to see have buyers maintain control or are we now basically in the territory of
25:28
Speaker A
this supply area? I need to now understand from this supply zone are the sellers taken control or from this induced demand area are buyers in control inducements are unclear market structure is unclear. I need to basically not trade this session. Let's
25:39
Speaker A
see what happens. Okay, price comes into this demand area, does another quick sweep, and therefore this next inducement right here shows me that the buyers are in control and this supply zone was invalid. Now, why could that supply zone be invalid? Well, as I
25:51
Speaker A
mentioned previously, it's not really a supply zone cuz it didn't lead to a lower low. Just from market structure, we had a low in the market that formed a higher high. This went on to hit the decisional demand with an inducement
26:02
Speaker A
forming a higher low. After that, we go on to make a new higher high. higher highs previously that form higher lows, not breaks the structure are not supply zones, which is why we put a question mark. Therefore, we know that this was
26:13
Speaker A
not a supply zone. It was a trap zone and the bullish market maintained. And therefore, when we count the inducements, we're really seeing that the buyers are really in control from inducements. Inducement number one, inducement number two, inducement number
26:25
Speaker A
three, inducement number four, inducement number five, and most recently the session, inducement number six. No trades for us, but we can read the market with clarity. Now, let's let the session play out and arrive to the next day, which is going to be Friday.
26:38
Speaker A
And because it's the first Friday of the month, it is NFP, we have to be a little bit cautious to not get caught up trading the wrong side of the markets.
26:44
Speaker A
But it is important to remember this could also be considered a powerful inducement. So, I need to see are the buyers in control or are the sellers in control. But remember, all of this order flow and strength that we saw yesterday
26:54
Speaker A
is now become liquidity after the breaker structure. Once we have a breaker structure, this became a liquidity target. So, let's be careful not to get caught out in this area and look for strength on who is in control
27:05
Speaker A
based as always on lower time frame inducements reading through our Asia range. Now, as we read through this Asia range from the previous day, we know this could potentially be an inducement because we made a new higher high and
27:15
Speaker A
then we start to see that Asia range is showing us a nice picture that is this over here and mitigation and then this slight sweep inducement break of structure buildup inducement break of structure. We can start to see that the
27:28
Speaker A
sellers are in control. Taking out this wick inducement push down mitigation with a slight wick run of liquidity build up inducement mitigation. We can start to see sellers are taking control.
27:39
Speaker A
And remember Frankfurt open is not our area of interest. So therefore this buildup sweep of liquidity on Frankfurt and push out is not for us. In fact we can read this as buildup of liquidity and inducements and this becomes the
27:50
Speaker A
trap. So just like yesterday where I was speaking about smart money trap the same principle applies. I just need to confirm is this London open sweep a act actually actual inducement or just a higher high yet to be confirmed but I'm
28:02
Speaker A
more interested to see is this a smart money trap to set the precedent for the day and then I know I can target all the way down to this demand area. So let's see if we get a sell opportunity based
28:11
Speaker A
on a continuation model which is an Asia midline sweep trading into a smart money trap. This area if it's confirmed can be a nice selling zone. Why? because I'm trading off the back of not only these inducements over here, but also this
28:24
Speaker A
inducement higher high over here. So, let's see if I get an opportunity. Unfortunately, not just yet, and it doesn't come up in time. I would have loved to have sold over here into this trap, but the trap has already been
28:34
Speaker A
liquidated now, and my opportunity has been taken away from me. Now, as I continue to read on, I can start to see we had a buildup over here, inducement over here, clean mitigation over here after taking this liquidity. So we can
28:46
Speaker A
see these complete liquidity cycles showing sellers control inducement push down bearish break of structure buildup inducement push down build up inducement mitigation push down. Sellers are completely in control. I wish I could be part of this but it's not for me because
28:59
Speaker A
it doesn't meet any of my criteria. Another potentially missed opportunity. Now all we do is let price rock until our New York session. Our next trading window cuz we don't trade every hour of the day. Time windows are important
29:10
Speaker A
because they reduce losses. They show us the time of most probability, most meaningful inducements, avoiding traps.
29:17
Speaker A
This is the way to be trading. Now, as we've had New York open, we can see price has come back to this inducement over here, this previous liquidity cycle zone and done a buildup, mitigation, clear push down. So, we found another
29:28
Speaker A
potential inducement. Sellers are actively in control right now and also targeting all of this trend line buildup liquidity. Liquidity is running the show. Now, as we arrive to our key window, we are arriving to this demand area. So, I want to see is price going
29:42
Speaker A
to respect this demand area or break through it because for now all I see is inducer number one, inducer number two, inducer number three, inducer number four. Sellers are in control. I don't want to catch a falling knife. So, I'm
29:52
Speaker A
going to be a little bit careful, especially as we've just had NFP. The first Friday of the month, a few wicks being thrown around. Who knows what's going to happen? Who's in control? And look at this. a bit of a shakeout where
30:02
Speaker A
the NFP movement has now induced high, taken out this previous zone, taken out all of this liquidity. Actually, all of that liquidity now was NFP liquidity. We can take this away. And now we've potentially seen an inducement to
30:16
Speaker A
control the session, but it's not really tradable because it's a large zone. How am I supposed to manage such a large zone with a demand area right below?
30:24
Speaker A
This is something you want to generally avoid. As we arrive to the demand area, sellers are clearly in control because of that inducement. I don't want to randomly get into a buy. And this demand area gave no confirmation. It slid
30:34
Speaker A
through it like a knife going through butter. And therefore, this decisional demand that we had. Therefore, when we pop back to our higher time frame, we see that this decisional demand that led to this internal push out, we liquidated
30:44
Speaker A
all of this order flow liquidity and inducement all day long to show sellers control. Potentially, we come to a demand area over here, which was a complete liquidity cycle from the other day because remember, we swept low of
30:56
Speaker A
previous Asia low into a demand area. Had a push out. This was an inducement of control, a genesis inducement for this whole bullish price action started from this area. So price is now revisiting this area and therefore this
31:08
Speaker A
area became a decisional trap. It just got liquidated. Market structure alone does not work. You need to combine it with everything else. Now we come back to our M1 and we potentially see as we induce this area, purple for trap. I
31:20
Speaker A
want to see as we arrive to our inducement demand, do we have any buyer strength? Cuz we're still in our key time window and we see that very nicely.
31:27
Speaker A
A nice pop, a nice bullish reaction, but no way for me to get in. No lower time frame confirmation and an invalidation unfortunately right here, which is the efficiency of the pullback. One of my favorite invalidations, most powerful
31:39
Speaker A
invalidations. So, I'm not going to ignore it even if I want to get into this buy because we've seen inducement into demand area taking out a decisional key time window. We just have no lower time fraing confirmation. So, even
31:49
Speaker A
though this is probably very likely an inducement of a decisional, there is no way to enter it and without an entry is just an idea. this inducement into demand can at least push back up to this area and then we see what happens next.
32:00
Speaker A
So there is potential in it but right now no confirmation. Now we break past it. I'm once again potentially interested. I've now seen a bullish break of structure and I've got a potential demand area right here. It's a
32:12
Speaker A
decisional demand. So I want to see will price tap into this area give me an inducement and lower time frame confirmation. Let's see. Tapping in no confirmation gives another break of structure. is toying with us today, but if it doesn't meet the criterias, what
32:26
Speaker A
to do? We are restricted traders because we want to be profitable. We don't just jump in on zones and hope for the best.
32:31
Speaker A
So, even though this was rather predictable, that mitigation right here, the best entry would have been somewhere around this extreme, it just never came back. It's an inducement of a decisional into demand. Everything we love to see just without the confirmation.
32:42
Speaker A
Therefore, this trade has left us. But at least we know how to read direction.
32:46
Speaker A
We know who's in control. We can predict what's going to happen next. And as it comes back to this imbalance right here for London close, it unfortunately doesn't meet my criteria because of time and because of the efficiency of the
32:56
Speaker A
pullback of this inducement zone. We have now come into this inducement supply. I don't want to be risking a buy anymore and therefore because of timing because we have now mitigated this inducement supply. For all we know, the
33:07
Speaker A
road map could be inducement bearish lower low going on to make a lower low deeper into this demand and then maybe popping. So I don't want to jump into a buy just yet.
33:18
Speaker A
Time is invalid. Structure is invalid. I don't have a clear read on control. So I call it a day. So now as we arrive to the next day, Monday, new week, we can see price is arriving to that previous
33:28
Speaker A
inducement zone, but it doesn't have any strength anymore because we arrived to this inducement demand. Remember, look left. We had a inducement into demand leading to a higher high. And we came back to that demand area with an
33:41
Speaker A
inducement. So therefore, the next reasonable expectation is to go on and make a new higher high. That's pretty obvious, but that's just structure alone. Let's read what's going on. But I'm not interested in selling just yet because that is most likely a trap zone.
33:52
Speaker A
When I read into what happened from yesterday's London close to now London open, I can start to see that we had a buildup inducement mitigation. Buyers are in control. So this inducement from yesterday and also this inducement from
34:04
Speaker A
today and mitigation is showing me buyers are in control and all of this order flow and also higher highs being formed. So I can see buyers are clearly in control and I don't want to be selling. But let's see if I can actually
34:14
Speaker A
find a buy opportunity. And when you look at that, we are sweeping Asia high without real context. So therefore, I'm not going to be a part of this party, but I can read it and maybe even identify a smart money trap. Let's see.
34:25
Speaker A
So we have a buildup of liquidity around Asia high. We are sweeping highs on London open. What are smart money traders going to be thinking? They're going to be thinking, perfect London open sweep. And where are we going?
34:38
Speaker A
We're going to a previous NFP inducement zone. So, we're going into a supply area and we're sweeping Asia high in London open. This is wonderful. I'm sensing trap. Let's see if it is. The trap chronicles. If you watch the smart money
34:51
Speaker A
trap guide, you'll start to see why I know this is a trap or at least think it's a trap. And it's because we are arriving to the efficiency of the pullback. This is a no-go zone for me.
34:59
Speaker A
Even if it plays out, it doesn't worry me because this is not my trade. I'm sensing this is a trap. I'm with the momentum of yesterday and today. I don't want to fight the overwhelming tide, which is demand area inducement. And we
35:10
Speaker A
have a liquidity cycle down here with another inducement and all of this trap zone to target. I'm seeing a big magnet over here to say price needs to come higher and therefore I want to find an entry. I just can't find an entry to
35:20
Speaker A
buy. But it's interesting to observe and we can start to see that we are printing equal highs to potentially target. I just don't have an inducement to trade off until potentially now if we sweep this area which we are right now. This
35:32
Speaker A
is what I like to see. If we can get a sweep of this area coming into this demand area. Very slight sweep over here leading to this push out. We might be getting signatures to potentially do an aggressive buy, but I still need a
35:42
Speaker A
confirmation over here. Maybe an internal break of structure slightly given, but not meeting any criteria.
35:47
Speaker A
There's no imbalance in here. There is no reason to be buying. I don't want to just be jumping in with hope. I want to see a clear inducement with an imbalance left, which we are not seeing right now.
35:56
Speaker A
Okay, now we are seeing something. We have seen we've induced this entire level. And as we induce this entire level, we have a bullish push out. So, if I want to take a very aggressive trade, I could take this Asia midline.
36:07
Speaker A
not really a midline buy into this liquidity that I see. So therefore, with a full analysis, I'm reading into it and it does fit a criteria which is we have time window inducement. Perfect. We have overall context. Remember the context is
36:19
Speaker A
that big magnet above because we've come into a demand area with an inducement and we're chasing a new higher high from somewhere over here to somewhere over there. And we're now using the trap that we see as our magnet that we know we
36:32
Speaker A
have equal highs to target and a smart money trap to target and this inducement to show us an entry potentially. We've now seen an internal breaker structure.
36:39
Speaker A
I don't usually trade these. So this is an aggressive trade. I'll be honest, but when your account is up, if you're floating 10% 20% up on your account, you can afford to take aggressive trades, but this would not be a first trade of
36:51
Speaker A
an account. This would not be a trade you take when you're in a losing period or in draw down. This is a trade you take as a C++ setup when you are already in profit and your psychology is sound.
36:59
Speaker A
So let's see if we do get tapped in now that we're seeing this retracement. I know that my break even protocol will be on this M1 shift. If we hit an entry and our one to three target one is going to
37:10
Speaker A
be right here. So this is our take-profit one. As always fixed takeprofit levels like so. I spent years and years doing take profits randomly and I always put all of my focus into the entry and then with the exits which
37:21
Speaker A
is just as important I would randomly go off a level maybe Asia high maybe M15 structure I had so many levels on the screen and based on how greedy or fearful I was that would be what I picked. Then I realized I need to take
37:30
Speaker A
this like a science and then I took a thousand trades worth of data to find my optimal areas to be taking profit. So if you want to see a full guide for how to take profits effectively backed by data
37:40
Speaker A
and AI go and check the link in the description. I don't want anything from you. It's free for the rest of your life. something that really helped me revolutionize my trading and I think it might help you too. Okay, so now we have
37:48
Speaker A
our fixed level, we know our break even point, we know our stop loss, we know our partial point. This is an entry good to go as a C plus setup. We get tapped in on this refined IFC with a three pip
37:58
Speaker A
stop loss. Looks wonderful and perfectly break even right now and take profit one. So finally a trade 1.5% locked in for trade one on Monday. Now let's see if this goes on towards our take-profit level two. That would be wonderful if it
38:12
Speaker A
does. Even though it's not the best setup, it has potential because we have a big magnet above and the only real resistance we see is this potential inducement over here. But it's not the most impactful, but it might arrive
38:23
Speaker A
there for the New York session. Overall, we are targeting a new higher high and on high of previous day. There is another inducement that could happen.
38:29
Speaker A
So, there is some roadblocks along the way. I don't have the most faith in this trade, but let's see. Okay, we arrived to the first resistance area, which is this inducement supply. I'm not going to do anything until my next key window to
38:38
Speaker A
trade. There's no other action to take. And just like that, the trade has now been taken out. Break even plus partial.
38:44
Speaker A
So therefore, the max of this trade was a 1 to6. We were only able to capitalize on the 1 to3. Now let's see what the intention of the market is. Cuz we came to an inducement supply and now we're
38:52
Speaker A
having a bearish reaction with a bearish break of structure. So I need to now understand what is going on. Have the sellers taken control? Because now we have induced this whole trap area and Asia high. We've taken all of this
39:03
Speaker A
liquidity. We now see all of this area and we've come into an inducement supply. Do sellers now regain control or is this just a relief to now come back and find another inducement? Let's wait for our key window. New York open has
39:14
Speaker A
happened. Key window arriving and where do we happen to be arriving? Well, we are arriving to this demand area right here. So, it's very interesting to see the market follows its laws. But I now need to see because it is Asia low. I
39:26
Speaker A
don't like that because Asia low is liquidity. So, even though I've had price come into my demand area, we had this inducement high into the supply zone. Not the best supply area, but it's an inducement nonetheless. I want to be
39:36
Speaker A
careful because there is liquidity right below and there is this inducement demand right here that I would rather prefer. So let's watch M1 to see if there's any signs of bullish strength but my inclination is this is not a
39:48
Speaker A
important area. And just like that no lower time frame confirmation still bearish and taken out. So this was reasonable to assume would be a trap because Asia low liquidity is right here. Now we have liquidated Asia low liquidity. Let's see what is going on
40:02
Speaker A
because we might have a potential trade on our hands if we arrive to our demand area which is just down here. I can't call this an inducement by the way. This is not an inducement. Reason being is because we've just come to a previous
40:13
Speaker A
supply zone on M1. Now it's not important not something we trade but you just look at it and you say we have lower low high lower low high potentially lower low. So I don't want to get into a buy when M1 structure is
40:25
Speaker A
bearish. Okay. Now we see price action come higher. Now I've seen a bullish conversion. Now I know that the buyers are potentially in control on M1 and they are backed by an inducement of Asia low. Now it's coming to my end of my key
40:37
Speaker A
window. So it's not a trade for me, but price could potentially respect this area. They're just not in my key time window and therefore not a trade for me.
40:44
Speaker A
Now let's fast forward to the next day. Isn't it cool to see that as we approach London close, another key time window based on my dotted lines, which you know, we have another inducement for London close. And yes, it didn't come to
40:55
Speaker A
the M1 demand that I wanted, but it came to the M5 demand right here. So it meets price action lows. We had an inducement bullish push out and inducement into the M5 demand and continuation bullish. Just not a trade for me but completely
41:07
Speaker A
understandable. We are learning to read price. Once you read price, understand price, see direction, then you see how you trade because there is a difference between what you see and what you trade.
41:16
Speaker A
A professional trader doesn't blend them all together. There are trade models and valid trades and the rest is just your knowledge, market experience, market IQ, and ideas. Don't blend them all because a restricted trader is a profitable trader. Now let's fast forward to the
41:27
Speaker A
next day. Okay, the next day has arrived and we have arrived to this inducement demand. I don't have hope in it. I'm seeing this all as a trap and now liquidity. That's number one thing to point out with a nice demand area right
41:38
Speaker A
below. I'm more hopeful for this area because I don't want lower of previous day to be my entry with Asia low all aligned. This is all liquidity to me and further enhanced by the fact that we came to the previous inducement supply
41:50
Speaker A
of yesterday that led to this bearish push down. We have now arrived to this area. So now we can see that the sellers are showing strength and not only that we had a buildup right before Asia range and then Asia high just happens to be an
42:03
Speaker A
inducement. Now Asia high being the inducement of the day is pretty tricky. I'll be honest there is a protocol to follow. So I'll explain it if needed.
42:10
Speaker A
But what I'm more interested in is that as we arrive to my trap zone that I'm not interested in. Frankfurt high gets swept towards my London open. So now I'm interested to see if this is an inducement around Asia midline of
42:22
Speaker A
Frankfurt's high and targeting all of this liquidity right here and the liquidity of low of previous day and this smart money trap zone. I am very interested for buyers to get induced and I come into this demand area right here
42:34
Speaker A
fueled by this inducement. And when we connect the dots, it makes perfect sense. We have an inducement supply zone. Price comes in, does another inducement supply and then comes in, does another inducement. I'm connecting one, two, and three inducements with a
42:46
Speaker A
nice magnet below into this area. I want price to come into that demand. Let's see what happens. Potentially also gives rise to a sell opportunity here. By the way, the imbalance is rather low, which is not ideal. I don't want M1 points of
42:58
Speaker A
interest to be so large. It's 11 pips. That is quite large for an M1 supply zone. So, it will need confirmation. But let's see in our key time window. If we arrive into there, well, swallowed my own words there. We didn't arrive into
43:07
Speaker A
there. So, the sell is gone. I can't sell this anymore. But, it's showing me that this seller's inducement is in control. And now we are coming with my nice magnet to take low of previous day, Asia low and a smart money trap. You
43:18
Speaker A
love to see it with this ascending trend line liquidity. You can't make this stuff up. And now we are in my demand area which was a previous inducement.
43:24
Speaker A
Remind yourself. And now we are connecting demand areas because where was this demand area before? Oh, it was another inducement demand. And where was this one before? Another decisional. So we've got inducement demand number one right here. Inducement demand number two
43:36
Speaker A
right here. And now we are getting an inducement into another inducement demand right here. This is a great great setup. We're in the key time window.
43:42
Speaker A
We're inducing everything we want to see. Smart money trap, Asia low, low of previous day, and we are arriving to a refined inducement demand. It doesn't get better than that with context bullish, chef's kiss. All I need is
43:52
Speaker A
lower time frame confirmation on M1. So, right now it's a very weak confirmation, but I do like the setup. So, I might chase this. But let's see if it develops further. But usually, I'm not taking an entry like this. But because I do like
44:03
Speaker A
the setup so much, it's an A+ setup. We have now found a potential inducement with an internal break of structure on M1, more like the 30 secondond. Very aggressive entry, but I just want to find a way to get in. And because I have
44:15
Speaker A
profit from yesterday, I'm allowing myself to be a little bit aggressive just to get into this trade. Hopefully, it doesn't fly away from me. And unfortunately, it's an inducement. And it's gone. It just goes up. And now when
44:26
Speaker A
it moves so much, look, the average session movement is 10 to 20 pips. When it's already moved 25 pips, the move of the session could already be gone.
44:34
Speaker A
Especially as we arrive into premium. Remember, just pull a fib from London high to London low. We have crossed the 50%. I don't want to be buying after price has already reached premium.
44:44
Speaker A
Therefore, this trade is already gone unless I find a re-entry. Now, this is pretty interesting cuz we have a nice buildup and a second inducement now. And therefore, this leaves a potential demand area that I can look to buy upon
44:55
Speaker A
now that we've had a break of structure. But we are arriving to a potential invalidation, which is this inducing supply. But I'm going to call it weak supply because it's already served its purpose. This inducement supply is only
45:05
Speaker A
an M1 inducement whereas this is lower previous day Asia low into an inducement higher time frame demand. This inducement overpowers this inducement by a mile. So therefore I'm not going to avoid buying if there is something valid but it is something to be doubtful
45:17
Speaker A
about. Okay, price is coming back to my territory that I'll be interested and continues bullish. Now that we've had a buildup potential inducement into this weak supply now I don't want to just chase the trade. So I'm going to be
45:28
Speaker A
careful now and not get into a buy because now we are potentially seeing sellers take a bit of control. So that is shortlived. Okay, that's a good sign and it was a positive sign because we had no break of structure. When there's
45:37
Speaker A
no break of structure, that is not an inducement. This is still buyer strength. But now the move has gone away from me. Let's see if I can find a buy opportunity during my New York window.
45:45
Speaker A
Let's allow the session to play out. So the next target is obviously going to be my Asia high, which is likely going to be a trap because Asia high inducement is not important. Especially, well, there it goes. I was about to say
45:58
Speaker A
especially to trap when you've had a higher time frame inducement in London. The flow of the day is to grab that liquidity. When you have an inducement low meaningful, the next target is Asia high. So we have now come to that smart
46:10
Speaker A
money trap Asia high zone. Even though there was highs, sweep, push down, this inducement took it out and smart money traders lost out once again. So now we have taken high of previous day and a smart money trap and Asia high as we
46:21
Speaker A
arrive into our key window. But I don't want to fight the momentum of the day.
46:24
Speaker A
So I'm not going to jump into a sell unless I really see a reason. And right now I see no reason. This is the last higher low. This is a higher high. We have not even made a M1 breaker
46:33
Speaker A
structure. So therefore, we cannot call this a supply zone. This is simply another trap because sellers haven't shown no strength and that's why they are swiftly taken out. I swear I'm not cheating here. You can see me. I'm doing
46:44
Speaker A
this with you live in time. If I take a loss, I'll take a loss with you. But there is no valid criteria and for now we know that the inducement of the day is this London key window inducement of
46:53
Speaker A
impact. It's a medium inducement into a inducement demand. Therefore, we allow the momentum of the day and there is no sell opportunity. Well, let's actually look closer because now that I've taken all of this liquidity, I don't want to
47:04
Speaker A
get ahead of myself actually all the way. We've taken all of these orderflow liquidity where we have smart money trap previous inducement supply, previous inducement supply. We are liquidating it all in the key time window. We might have a New York reversal, but I need to
47:18
Speaker A
see intention. So, let's have a look. actually when I see buildup potential inducement of everything on the left that I just mentioned leaving a potential supply zone not confirmed which is why I can't take it cuz there was no breaker structure but now we have
47:32
Speaker A
internal breaker structure like so there is a trade on our hands very aggressive once again right here covering that high and 1 to3 is right here and bearish breaker structure on M1 leads to our break even protocol now the only thing
47:44
Speaker A
that would need to confirm this really if I had a divergence between EU which I'm trading and GU where this was not forming a lower high it was forming a higher high, then I would definitely take this trade. But you know what?
47:53
Speaker A
We're up. We've been very conservative, so we can actually afford to take this trade. And just like that, we're in a little bit of profit. No break even protocol yet. Now we can break even.
48:03
Speaker A
Perfect. And we can actually see that there was another slight inducement right here. So we can start to see inducer number one, inducer number two, inducer number three. After a medium inducement and internal breaks of structure, now we can actually have a
48:14
Speaker A
nice tight entry and one to three riskreward is our partial. Let's see if we reach it.
48:20
Speaker A
Just like that. This is why I love reaction trading. I know that the price action is bullish. I know it's not going to go far bearish. But you know what?
48:26
Speaker A
When I have a confirmation with an inducement in my key time window, I might as well take it because I have profit to play with. So now for my next trade, which was Tuesday, because it's counter trend, I'm not really hopeful in
48:37
Speaker A
the trade. I'm going to lock in my full risk-to-reward. I want three risk-to-reward. I take full volume.
48:42
Speaker A
Therefore, I lock in 3%. Because the reality is the 1 to 10, which is my usual take-profit too, is going to be all the way down here, which it could, but I'm seeing buyers are so much more in control. And my general rule of thumb
48:53
Speaker A
is when I have a strong inducement into demand and a bullish push out, the 50% and above is where I want to be taking profit. My 1 to 10 is below that. So, I'd rather just lock in these gains. I
49:03
Speaker A
might bite my words cuz it might go all the way down, but which it is, but I'd rather secure something based on probability. If this goes all the way down, then I'm going to be pretty annoyed. But it is what it is. We don't
49:16
Speaker A
trade based on hope based on dollar amounts. We're based on what we see. And already I can see signs of stalling. We have a build up over here with a inducement into this demand area with another buildup forming. So now we are
49:28
Speaker A
getting consolidation. Doesn't mean the buyers have taken over, but we can start to see that this could be a potential area for price to drop. And now because the London window is over, I don't want to be fighting a counter trend trade
49:38
Speaker A
hoping it goes in my direction. Okay, now let's play through Asia range and we can start to see buyers are taking control based on all of these inducements that we see. We have another inducement right here. Build up
49:49
Speaker A
inducement right here. Build up inducement right here. So we know that the buyers are taking control. Let's see if they maintain Asia range will be what's important. Okay, all of that order flow became liquidity once we arrived into the previous inducement
50:02
Speaker A
supply following the laws once again. Now I want to see will price come down to my inducement demand. That'll be a wonderful place to find an entry and trade for today's price action. Let's play through to our key window which is
50:13
Speaker A
London open. See how we arrive with who's in control. Okay, as we arrive with London open, I can see there is a clear buildup. There is a clear inducement and that inducement is into a previous supply zone cuz this
50:28
Speaker A
lower high made at M1 lower low. We have now induced into supply and now we are targeting Asia low. So I can see the inducement of control. I can see a demand area target down here. There's just not really an opportunity to buy
50:39
Speaker A
unless I really look into this one right here. Not really a specific trade for me. But let's see how it plays. If we even come back.
50:50
Speaker A
Okay. The problem, the reason I'm going to be cautious on this area is because it's the second inducement and that second one has now had an inducement of Asia low. So when we have an inducement of Asia low, I just want to be careful.
51:01
Speaker A
But we can watch and see what happens in this first inducement area. But now that we've induced low and had a session movement of over 15 pips, I'm just going to be cautious and not take any trade.
51:10
Speaker A
Well, it didn't respect. Yeah, it looks like the Asia low sweep is what took control. Not a trade for us. Even though there was an internal break of structure right here, it doesn't meet any of the criteria because it's a very shallow
51:21
Speaker A
sweep without a demand. So, no POI inducement. And even though it did give a bullish break of structure mitigation, it doesn't meet any entry for me. So, no trade for that session. And now, let's whiz towards our next key time window.
51:31
Speaker A
We only trade 2 hours a day. London and New York key window and looks like a news release once again has popped off price action. So I just need to let it cool off. I'm not going to chase any trade when we have such
51:43
Speaker A
momentum. So I'll call it a day very easily. Pick your battles as they say and we wait for the next day. So now let's remind ourselves on the higher time frame where we are because we've had a lot of eventful things happen and
51:54
Speaker A
we remind ourselves that we are now approaching a higher high which could be a supply. So because it is a bullish price action higher higher low we might be going to make a higher high or we could be a supply zone coming down here.
52:06
Speaker A
So this is a complete inflection point. I need to be really cautious and understand price action what's going on here. But we are arriving to a higher high supply zone on a higher time frame for this day. So I want to be trading
52:19
Speaker A
liquidity sharply because we are in a potential zone of reversal. First point of liquidity is going to be Asia hype and if this happens on Frankfurt open then it is a trap as always.
52:29
Speaker A
Yep. On Frankfurt Open, which is a trap for me. So therefore, if I can now point this out as a trap, I'm now putting a potential magnet, just like we always do. This is the third time in this video
52:40
Speaker A
where we've had a Frankfurt open sweep and we've been consistently calling it a trap. Sometimes it is, sometimes it isn't, but now what I nicely see is I have this potential inducement area forming. So if I can get confirmation as
52:54
Speaker A
I approach my London window. So now I'm really interested to see is all of this going to be an inducement or not. London open has happened right now there is no confirmation. I want to understand because even though we have
53:07
Speaker A
hit this potential M1 supply I want to find if there's an inducement low around Asia midline that gives a reaction. So we have an inducement of all of this buildup on M1. We have a smart money trap above to target and I just need to
53:19
Speaker A
confirm is this an inducement based on this inducement demand bang on Asia midline. And why am I interested in that area? because we swept liquidity over here and therefore this could be an inducement demand. Why am I interested
53:30
Speaker A
in it? Because this meets the criteria of a continuation model. If you watch the video where I did on a continuation model, I did a full guide. Inducement around Asia midline that leads to internal high Frankfurt open trap trend
53:40
Speaker A
line liquidity below inducement internal breakup structure and entry. This could potentially be a trade, but I haven't had my confirmations just yet. So, I want to be really careful. Now, I'm inducing the whole zone. This is why we
53:51
Speaker A
trade confirmations. We don't just enter with inducements alone. I needed the confirmation. Now that I've had that confirmation, I've really found the inducements. And now if I can enter because once I see a break of structure, then I know I've got confirmation and I
54:03
Speaker A
can trade this. Right now, we've had M1 lower high, M1 lower low, inducement. If we get a bullish breaker structure, mitigation entry, we can now target all of this liquidity trap. Break structure happened. Now I just need to find a way
54:15
Speaker A
to get in. The entry could be right here with a stop-loss nine pips. That's going to be quite large. An aggressive stop loss would be here. 1 to three risk-to-reward first target and break even point. Assuming this is the high of
54:30
Speaker A
the moment, our break even point would be here. Let's see if this actually plays out. If it comes to an entry, if it keeps flying, think I've been missed out by a pipet. And is it gone? Yeah, it's gone. Smart money trap zone, false
54:42
Speaker A
reaction, and one to three target. Isn't that annoying? Sometimes life is like that, huh? Our entry was literally based on that demand area and price literally missed our entry. So be it. But it missed it by 0.3 pips. Slightly missed.
54:55
Speaker A
Missed trade would already be 3% cuz that's what you do with continuation models. Oh well, no trade for us. That's just the luck. Sometimes maybe another broker because I'm looking at forex.com.
55:04
Speaker A
Another broker could have tapped you in. But the point here is we understood the logic perfectly. And now where's the next target? Higher high. So now we see that the higher high is made on the higher time frame. Daily higher high now made.
55:19
Speaker A
And New York reversal. But you can see it's very aggressive. No entry. And you know what? Depending on where it lands, I'll see if it's worthwhile trading.
55:26
Speaker A
Asia range presents. If Asia respects this, okay, look, we're respecting that area. This is not really a day worth trading cuz we've come to that demand area. We've now formed a potential supply area. We have mixed structure.
55:37
Speaker A
When we have mixed structure, we just need to find an inducement. And looks like that inducement was not an inducement we trade cuz it was a Frankfurt open inducement. And you can see 1.5 plus 3% 4.5% plus a mis trade
55:51
Speaker A
which could have made a 7.5%. The point here is I could do this on and on. I could do this for hours. If you want to see me continue to do this series of dancing with price action, just let me
55:58
Speaker A
know. But the key to all of this is watch all of the guides that I've made.
56:01
Speaker A
Find the playlist where I have all of my guides from smart money traps to inducement guide to liquidity guide to market structure guide. I made so many guides. Watch all the guides so that for my next video you can be really
56:10
Speaker A
attentive to understand how I'm applying all the theory to price action and you can profitably trade in just one or two weeks price action making 7% gain very conservatively very consistently and passing your profs and making consistent payoffs that you deserve. However, the
56:23
Speaker A
key to it as always is that a restricted trader is a profitable trader.
Topics:scalping strategyprop firm trading1 minute timeframemarket structureliquiditysupply and demand zonesorder flowtrade managementrisk managementprice action trading

Answers

Frequently Asked Questions

What is the main timeframe used in this scalping strategy?

The strategy primarily focuses on trading candle by candle on the one-minute timeframe, supported by higher timeframe analysis.

How does the trader use higher timeframes in this strategy?

Higher timeframes like daily and 4-hour are used for quick top-down analysis to identify overall trend, supply and demand zones, and liquidity points before zooming into lower timeframes.

What role does psychology play in this scalping strategy?

Psychology is crucial; the trader advises only taking certain trades when in profit and psychologically sound, emphasizing the importance of readiness and avoiding trades during drawdowns.

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