How to find tick precision entries everyday — Transcript

All right, boys. We are back. Um, today I'm going to talk about a concept that I have never talked about on YouTube. Um, but it's something that I use quite frequently. Um, you guys probably know me as the rejection block guy, but um, I use this every single day as well, and it is key opens and the Fibonacci tool. I'm going to talk about what they are, how you mark them, why they work, how you can combine them with the fib, how to draw the fib correctly, and risk management, how that plays into all this. So, just going to get straight into it. Um, first off, we're going to look at Monday. We're going to give you guys two examples. The first one is a 10:00 a.m. key open with an order block. And let's talk about the fundamentals of key opens.

So, the way that I use the 10 a.m. key open specifically is I use it on the 4 hour first and foremost. The 10:00 a.m. is the 4 hour candle open. Now, if you look at all these candles on the 4 hour time frame, what do you notice? What do they all have in common?

They all have wicks on the top and on the bottom. Like 97% of them do at least.

So, knowing this, we can go down in time frame and we can expect our 10:00 a.m. open to go in one direction and then for it to manipulate in the other direction, which on the 4 hour time frame is going to leave us with a high and low wick. Hopefully, you're um you're understanding this.

Okay. Um, if not, just watch it a couple times. For new traders, it can be a little advanced, but once you get the hang of it, I swear to God, it's pretty simple.

So, in this case, right, the 4 hour candle opens right here. I'm on the five-minute chart right now, but it opens right here.

So, we're going to put our cursor on this candle, and it's going to say up there like up here it's going to say the opening price which is 24887.25, which is what I've marked here.

And you can see that we have our manipulation leg here, right? We go above the uh the 10 a.m. opening price, right? And then we aggressively sell off. Now, what can we do from here? How do I use this key open as an entry tool?

Now, what do you notice about this 10 a.m. key open? This candle right here is what you would call an order block. Okay, this is an order block on the 5-minute chart. Now, there are good order blocks and there are bad order blocks. How do you identify a good order block? A good order block has very similar criteria to a rejection block.

We either sweep liquidity or we tap into a PDA. Here you can see we sweep like a bunch of liquidity this high. Okay, that looks bad. Um, this high we sweep out like internal structure. Pretty pretty decent order block, I would say. We also tap into like 15 minute structure.

I don't know if there's some 1 hour structure here. Maybe that would be ideal.

Yeah, we tap into a 1 hour rejection block. So, there you go. Rejection blocks are the goat.

Anyways, what else is good about this entry? Right, we have our 10 a.m. key open. We have our 5 minute order block.

Now, you can see that this rejection block up here, I use rejection blocks for everything. I'm sorry, but like this is going to get tied into key opens. This rejection block right here has been mitigated. We already tapped into this. That's why I'm not worried in this case about that rejection block getting tapped into again.

Now, I talked about the fib. How are we going to incorporate the fib into this?

Well, the fib is actually pretty easy if you know how to use it. And this is how I would mark the fib in this case. From high to low. When we start retracing, I'm gonna draw my fib and I'm gonna see that, okay, the fib actually lines up perfectly with the 10 a.m. key open. And this is a really good example because we have the 0.79 on the fib, which is like the most premium level on the fib. This is ideal because if I want to take a short here, right, I want to have a short limit at this 10 a.m. key open. I have a bunch of confluences here that tell me, okay, we have potential to sell off here.

Now, what else is good about this setup? This setup actually allows me to get away with minuscule risk.

So, why is that? Normally, you know, let's say you want to target this low as a first target. Normally, you know, you might think I would want to have my stop loss at the high.

But what's great about this setup is that in this case, the rejection block, the most premium PDA has been tapped into. We have rebalanced price up here.

Now, my entry is at the 0.79 level on the fib, which is the most premium level on the fib. And this order block and this 10 a.m. key open line up perfectly, which is like this is telling me I have probably the most premium entry that I'm going to get, which means I could get away with a 10 to 15 point stop. Like, you might want to put it above this high or like just have a static 10 to 15 point stop.

Holy yap. Uh, with a conservative target of this first internal low, this would leave you with a 6.6 RR, which is like typically what I would go for. I go for like everything from like 1 to 4 to 1 to 6 spot for me.

So this really decent setup, really good example of what a key open can be used for.

I hate when you switch time frames and then TradingView just assumes you want to go to the present time. But so this is what the trade would look like on the one minute time frame. Not a lot of drawdown, not a lot of pullbacks. You know, these setups can be very volatile because you're trading like peak New York AM session, which is the most volatile session, which can be good or bad. Um, it might affect your risk in some scenarios.

Sometimes 10 to 15 point stops can be that big and that just doesn't make sense to take that trade in that case.

So because the odds of getting wicked out are just too big. But in this case it fits pretty well. Now you could be safe and you could like have a 27 point stop which would still leave you with like almost a 1 to 4 RR. Totally up to you how you want to manage your risk.

Um, for me, I would probably have like a 15 point stop. Uh, which would be just like something in between just like let price breathe a little bit because we do have like the most volatile session. But if you start using key opens, you might notice that we top and bottom tick very often at these levels and you can easily identify a good versus a bad key open. It's just about confluences, probabilities. If you can stack probabilities and you can have a like a good low risk entry, these become very powerful. So that was an example using an order block and the fib. Now let's look at another example from today. That was from Monday. Let's look at today.

So easiest ways to mark them is just go on the 1 hour time frame.

Mark it right there. That's our opening price. [Music] And we're going to scale down to the five minute again.

Now this also gets a little bit more complicated because we're going to look at lower time frame how to actually draw the fib correctly.

So you see all these legs, right? Down, up, down, up, down, up. Now, you might think, oh yeah, we're just drawing from high to low.

Not exactly. It's not that simple. These little legs, these small legs are constantly getting rebalanced, which means that from high to low, the unbalanced range continuously changes. So in this case right let me this leg has already rebalanced to 50%.

50% is like my okay that's a new leg now I can't use that fib in the same area anymore. And now this leg has also been rebalanced 50%.

Which I can't really draw it from that high now either. Make sense? So I can't use this high anymore and I can't use this high anymore.

So where I would have to actually draw the fib would be this high, right?

Because this high we have not rebalanced anywhere. We start rebalancing down here, right? I can't even Why am I pointing at the chart like you see it? Dumbass.

Um, we start retracing down here at this low. This is where we start retracing.

So my fib would be drawn from that high to that low.

So because the odds of getting wicked out are just too big. But in this case it fits pretty well. Now you could be safe and you could like have a 27 point stop which would still leave you with

like almost a 1 to four RR. Totally up to you how you want to manage your risk.

Um, for me, I would probably have like a 15 point stop. Uh, which would be just like something in between just like let price breathe a little bit because we do have like the most volatile session. But if you start using

key opens, you might notice that we top and bottom tick very often at these levels and you can easily identify a good versus a bad key open. It's just about confluences, probabilities. If you can stack probabilities and you can have

a like a good lowrisk entry, these become very powerful. So that was an example using a order block and the fib. Now let's look at another example from today. That was from Monday. Let's look at today.

So easiest ways to mark them is just go on the 1 hour time frame.

Mark it right there. That's our opening price [Music] and we're going to scale down to the five minute again.

Now this is also gets a little bit more complicated because we're going to look at lower time frame how to actually draw the fib correctly.

So you see all these legs, right? Down, up down up down up. Now, you might think, oh yeah, we're just drawing from high to low.

Not exactly. It's not that simple. These little legs, these small legs are constantly getting rebalanced, which means that from high to low, the unbalanced range continuously changes. So in this case right let me this leg has already rebalanced to 50%.

50% is like my okay that's a new leg now I can't use that fib in the same area anymore. And now this leg has also been rebalanced 50%.

which I can't really draw it from that high now either. Make sense? So I can't use this high anymore and I can't use this high anymore.

So where I would have to actually draw the fib would be this high, right?

Because this high we have not rebalanced anywhere. We start rebalancing down here, right? I can't even Why am I pointing at the chart like you see it? Dumbass.

um we start retracing down here at this low. This is where we start retracing.

So my fib would be drawn from that high to that low. Now that would be my new my new range in which I'm looking for discount, right? Discount being 0.5 50%. Equilibrium of the range.

So we can see again that um on the fib we have a key open level which aligns perfectly with a discount level on the fib which is ideal right the fib is very very useful for like validating levels if you want obviously

you can see that we have like gaps here we have on the on the one minute we I don't know if we have like 15 minute structure on this no we We have some five-minute structure. We have a fivem minute fair value gap. We

have five minute inverse fair value gap which makes a BPR or balance price range.

And again there's a lot of confluences here that tells me okay huge selloff. Also again look how we have that manipulation to the upside which leaves us with a 4hour candle looking like this. Right? We open, wake up, manipulate, in other words,

and then we come back down. We aggressively close on the fivem minute below the 10 a.m. key open.

And then we leave the key open itself perfectly in discount and perfectly within structure price action, right?

Which is like, hm, okay, nice. So, how would this trade look like? This scenario is slightly different because now we're not getting in at the most discounted level of the range.

So, for me, this trade would probably look something like this where I would I would have it.

This is a very volatile day, by the way. Damn. So this would be like the most conservative target. But another thing we're going to look at here first. Let's let's decide our stop loss. So if we would look at the 5m

minute, what a lot of people do is they put it above the 5m minute fair rally gap, which is fair. That leaves us with a 25 point stop, right? Makes sense.

Perfectly fine. Also, that leaves us above the 0.62 62 level on the fib, which is the most like I would say frequently um used level on the fib. That's like like that's beginning of OT. Price rejects 0.62 to the tick a lot, which I would

want to have my stop loss above this at least. Okay, but we're going to throw another key open into the mix, which is midnight open, which is just exactly what it sounds like, midnight.

And we're going to look out look at how to actually use midnight open. Now, you can use this as the 10 a.m. key open, but you can also use it for bias. It acts very similar to the 10 a.m. key

open. So, what do you notice here on the 1 hour? We barely have a wick below midnight open, right? Midnight open is just this candle.

0 0 0 midnight opens. We if you go look at the chart, you will see 95% of the time we will manipulate either below or above midnight open and then we will start the actual move.

If we see this where we have no or like barely any manipulation below midnight open and we rally like this, you can actually use midnight open as a target. And that that's exactly what I called out today in the Discord because

a lot of people were in in uh some pretty decent looking shorts and they just sent screenshots and were just asking for targets and I said midnight open possible target because we had like close to no manipulation below

midnight and as you can see we absolutely just rushed down to midnight open and just dumped through it. Right.

So before market opened we have this huge fake move if you will and then that leaves like look at this on the one minute look at how little price has moved below that level that is not normal like 90 to 95% of the time

if this up move was the real move we would have a bigger down move below midnight open if that makes sense so I would say this is probably the secondly most used concept that I teach like in the discord. Um, rejection locks being

number one, right? And then key opens being number two. So, very powerful concept. I do like it a lot because it offers a lot of like structure and like the t I like the time aspect of it, right? 10 a.m. offers like

a I should be trading at 10 a.m. because that's where this setup is going to appear most of the time.

Now, you might see price like tick 10:00 a.m. and uh and midnight open a lot if you go look at the chart, but just know that there are there are good and bad setups like there is with anything else.

So, incorporating the fib great tool in my opinion to like validate the levels. Other than that, just structure, right?

normal PD rays, uh, rejection blocks, order blocks, pre value gaps, inverse fair value gaps, all that stuff. So, you can get some pretty gnarly win rates with this and some pretty good riskrewards. That's kind of how I like

to trade. I don't like to spam trades every day. I might take like three trades per week and they are just high quality trades in my opinion. They're high RR and the win rate is pretty good because the trade frequency is so low,

right? I'm not spamming high RR trades. That would leave me with like a 20% win rate, right? I don't really want that. I might look at the chart and I might be like, I don't like how this is setting

up and I just might get off, right? Or I might look at it and I'll be like, yeah, this looks pretty decent. and then I'll actually log in to trade my accounts and then I'll wait for the setup to form

which in my opinion is one of the best ways to trade because I'm not constantly glued to the chart. Right? Being glued to the chart is going to lead to getting impatient waiting for your setup. You're going to get impatient,

right? And sitting here watching the chart waiting for a setup, you might start seeing things. you might start seeing this looks this looks like a half decent setup. I might just take this and get off for the day because I'm kind of

lowkey like tired of sitting here, which is like that's what a lot of people do. I like to just go on the chart at 10 a.m. If there's news at 8:30, I'll trade like a data high low setup at 8:30 if it appears. If not,

I'll look at 10 a.m. How is 10 a.m. opening? how is structure like forming around this area and then I'll just take it from there.

I'll w start watching from there and if I don't get what I want to see I'll just simply get off the chart. It is not that deep. Now we can look at a setup from I think it was Tuesday

or Wednesday. Let's find out. Yeah, I think it's from Wednesday actually where again you see we have this like no manipulation below below this 10 a.m. key open, right?

Which is Oh the 100 key open. Um, no wick on this hourly candle, which is very rare. But so in this case, this is optimal, right?

10 a.m. opens, we rally. We just rally. No manipulation below 10:00 a.m. In this case, I would sit on my hands until we start coming back to 10 a.m. This would either be a long or a short. Depending

on how we set it up on lower time frame, I would use entry triggers, right?

To like confirm that yes, I can get in the trade now. But in this case, like yes, we close aggressively above 10 a.m., but we have no manipulation below it, which means I'm not going to long. Longs are out of

the question. Now, I can find a short setup up here and then target 10 a.m.

open as a pretty obvious target because, as I said, like if you look at the 4hour candles, they very rarely like don't have a upper or lower wick. So like in this case you'll see on the 4 hour we have an

upper and lower on the 1 hour we don't because we like it's lower time frame and then if you go on the five minute we can see that we actually got a decent looking setup right.

So draw the fib and it lines up in OT pretty nicely like or if you draw it from here like still in that range. I would probably draw from here though because that's like the unbalanced leg if you will.

So in this case, I was looking and I was waiting and I was thinking, okay, looks like I'm going to get an entry here at this 10 a.m. key open cuz it is a good looking setup, right? We have 15-minute

gap. We have five minute gap. We have like a inverse for value gap. A lot of structure telling us that we were going to continue being bearish.

But this little gray box, by the way, is an a new week opening gap. It's just an indicator new by Lux Algo. If you want the settings, it's right there. I just have the last three. And um yeah, new

week opening gaps. You probably know what that is. That's just the gap where price makes when uh a new week opens.

So, not rocket science, but probably the most uh powerful PDA, especially if it's like unfilled. It's like a guaranteed draw liquidity pretty much.

Anyways, this is not a new week opening gap video. Um yeah, in this case, we have that new week opening gap in discount, right? 0.5 pretty good level as well. I was thinking we're going to come back to

this 10 a.m. key open level because I've seen this happen a bunch of times, right? We have the 10 a.m. key open in a 5minute gap with other structure and it's in OT which is like three out of three, right? I want to

take this take this short. It gets edged and um and price keeps playing out. We take out so many levels that were considered my target at the time with this leg right here. I was just like, "Okay, I'm not going to trade today."

Um, price just rallied through all of my targets and I didn't get an entry. So, that's also fine. That's what I mean by low trade frequency. Like, I'm very picky with my pick picky with my setups.

Jesus Christ. Um, so like this day I just did not take a trade, right? I would have gotten the setup too like during lunch, which is kind of a drawback for me. I don't love trading lunch. I do it sometimes.

But um yeah, the session was over. The prices played out. Didn't get my entry.

Could have taken a slightly more aggressive entry, but then again, like my stop would have to be above this, which would leave me with like a pretty big stop, which would be it's not it's not something not nothing's wrong with big stops. It's

just not my thing. So, yeah. No hate towards big big stops. low RR. But yeah, that's just kind of my trading style.

Um, high RR, decent win rate, low trade frequency. I don't spam trades. So, if you want to adapt that trading style, feel free. Um, I feel like you get the best of both worlds. You get the like the speed of normal day trading,

but you get like the peace of mind of like swing tradingish. So yeah, it's kind of how I prefer to do it.

Anyways, that was uh a lot of yap. I need a glass of water now. Um POW boot camp. Maybe, maybe not. We'll see. Um let me know in the comments what you guys want to see more of. If it's

psychology, strategy, risk management, whatever it is. I just feel like I had to make like this video because I see people keep trying to teach it and they kind of teach it just straight up wrong.

So, I know this is very advanced. Um, watch the video a couple times and you'll get the hang of it. Um, but yeah, that was pretty much it. So bye.