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All right, folks. Well, we're here. So technically, this is the first teaching I gave you guys. An introduction video, obviously. If you haven't watched that one yet, go to the playlist on my YouTube channel and please watch that.
SirTrader explains key elements of a trade setup using weekly, daily, and hourly charts to develop consistent trading strategies.
Key Takeaways
- Weekly charts provide the foundational bias for trade setups.
- Liquidity zones created by stop orders are key to understanding market moves.
- Imbalances indicate strong directional momentum and potential trade opportunities.
- Consistency comes from focusing on likely price movement, not exact predictions.
- Experience and practice are essential to mastering trade setups and market reading.
Summary
- The video focuses on understanding trade setups primarily through weekly charts, emphasizing the importance of anticipating weekly candle movements.
- SirTrader highlights the significance of liquidity, buy stops above highs, and sell stops below lows as drivers of market movement.
- He explains the concept of imbalances where price moves beyond previous candle highs or lows without overlap, signaling potential trend continuation.
- The weekly chart sets the initial bias, while the daily chart is used to identify swing highs, lows, and liquidity zones.
- The market often traps traders with stop orders, creating liquidity pools that smart money traders exploit.
- Trend lines are used sparingly, mainly for educational purposes rather than active trading signals.
- The video stresses practicing and gaining experience to read price speed, magnitude, and likely directional moves rather than predicting exact closes.
- SirTrader advises focusing on likely price movement early in the week to build consistency in trading setups.
- He encourages reviewing charts regularly to observe recurring patterns of liquidity and imbalances.
- The overall approach integrates multi-timeframe analysis to understand market structure and price behavior.
Full Transcript — Download SRT & Markdown
Speaker A
one because it'll help at least establish the in my opinion the proper expectations that way you understand what you're getting involved with here and at least it gives me a chance to kind of like break the ice and show you
Speaker A
One, because it'll help at least establish, in my opinion, the proper expectations. That way, you understand what you're getting involved with here, and at least it gives me a chance to kind of break the ice and show you
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is a trading view chart and this is a weekly chart and I want you to think about each week before the new trading week begins preferably on the weekend the idea is you want to try to get a
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the contrast of what you may be expecting versus what I intend to deliver. All right, so this first installment is going to be elements to a trade setup. All right, so we're looking at the NASDAQ futures March delivery contract, and this
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want to see before this weekly candle opened up all we had was this indecisive candle do you think that this candle that would have formed and opened here is more likely to go higher or lower and that's the component I want you to focus
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is a TradingView chart, and this is a weekly chart. I want you to think about each week before the new trading week begins, preferably on the weekend. The idea is you want to try to get a
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price to gravitate towards certain levels and the measure of speed and magnitude that it moves to get to these levels you learn that over experience that's not something I can transfer it's something you have to practice and see
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read on what you think that next weekly candle is going to do. Is it going to go higher, or is it going to go lower? You're not trying to predict the close of the weekly candle. That's important. You just
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start the first half of the week or maybe just one day expand lower and if you get a setup in that that's it you're done that's how you start working towards consistency so the only thing you're looking for is a likely movement
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want to see, before this weekly candle opened up, all we had was this indecisive candle. Do you think that this candle that would have formed and opened here is more likely to go higher or lower? And that's the component I want you to focus
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and the draw on liquidity what makes the market go higher or lower it's predominantly found on this time frame okay so majority of your analysis should really be linked to this time frame right here you have to have an
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on with your analysis. What is the market likely to draw to? When I say draw to, think of it as price being a paperclip, and then you have this magnetic impulse that specific price levels and seasonality put on price. It'll cause
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that Weekly range expanding higher or lower because we're looking for lower prices and we're looking for weakness the expectation is we want to see every short-term low like this would be a short-term low this will be a short-term
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price to gravitate towards certain levels, and the measure of speed and magnitude that it moves to get to these levels, you learn that over experience. That's not something I can transfer. It's something you have to practice and see
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it's running to an imbalance now what's that mean above old highs buy stops below old lows sell stops imbalances is something like this over here where we have one single candle pass higher and the previous candle's high is here and
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and study, and you get a rhythm for it. In the early stages of your development, you want to at least try to focus your attention on where that weekly candle is going to do. Now, here's the thing: it may
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offset that and efficiently deliver price on the opposite end so we're looking for lower prices we're looking for an expansion we're looking at the daily chart we're going to drop down into the hourly chart okay now what I
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start the first half of the week, or maybe just one day, expand lower, and if you get a setup in that, that's it. You're done. That's how you start working towards consistency. So the only thing you're looking for is a likely movement
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delinting here is the fact that we had a nice selloff on Thursday and the market went into consolidation overnight notice what happens here on Friday this is that old low on the daily chart that's what we're thinking and or assuming that it's
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higher or lower based on the weekly candle. Okay, that's all you're doing. That sets your initial bias for the week. On the daily chart, you're looking for swing highs and swing lows to get your liquidity and majority of your trading
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these same levels so if we know that this level down here is the old daily low and again let me take it back up to the chart on the daily chart that's this low right here okay by dropping down
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and the draw on liquidity. What makes the market go higher or lower is predominantly found on this time frame. Okay, so the majority of your analysis should really be linked to this time frame right here. You have to have an
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market creates this short-term high and this short-term low what rests above that short-term high if you've taken notes and been paying attention it's buy stops what resting below this low Here Sell stops watch closely Market trades down initially and takes out the sell
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assumption whether you're going to be expecting that weekly candle to expand higher or lower. That's your weekly bias, but then you have to go into the daily chart and figure out basically where you are in the grand scheme of things on
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here where it drops down first it's kind of like a sucker play anybody has a sell stop below here they want to sell on weakness they're going to get tripped into the marketplace so now they're triggered in short and then they start
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that weekly range expanding higher or lower. Because we're looking for lower prices, and we're looking for weakness, the expectation is we want to see every short-term low. Like this would be a short-term low, this will be a short-term
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to do that number one one it's going to punish those individuals here that went short when it drives Above This High here it sends all those buy stops into Market orders flooding the marketplace that gives a huge influx of willing
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low, and underneath those lows is going to be sell stops. Okay, that's liquidity. When I say learn to start looking for where the market's going to draw to, it's drawing to one of two things. Okay, it's drawing to stops, which is liquidity, or
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the counterparty or the other side of a smart money Trader that's wanting to go short because they're going to sell short they got to sell it to somebody who wants to buy it at a high price that's why the market does this in your
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it's running to an imbalance. Now, what's that mean? Above old highs, buy stops. Below old lows, sell stops. Imbalances is something like this over here, where we have one single candle pass higher, and the previous candle's high is here, and
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generally you'll see a short-term low taken out and sell stops taken before you see a very pronounced rally higher don't take my word for it go through your charts and you'll see it's actually occurring almost on a daily basis so
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the next candle's low is here. So it only went up one candle. Nothing moved down to overlap with that same delivery on that price candle there. So, in other words, that's an imbalance. It's only going higher, and nothing else is here to
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okay so we have a trend line here and a trend line here that's the extent of a trend line that's it I only use them to highlight to my students these levels are not on my chart I'm watching a naked
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offset that and efficiently deliver price on the opposite end. So we're looking for lower prices, we're looking for an expansion, we're looking at the daily chart, we're going to drop down into the hourly chart. Okay, now what I
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these candles forming if you have the luxury watching it life and you can lose sight of where you are and mean once you lose your bearings it's really confusing and this help helps you keep those bearings in mind and what do I mean by
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have here is a framework for looking at the weekly range on an hourly chart. So all I did was beginning on midnight New York time Monday's candle, and then Friday's close, and then the beginning of Friday's trading at midnight. Now, what I'm
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artist and then the algorithms go right back up to an area where it's been cleanly delivered relative equal highs see how this High here right before it dropped is basically the same high here notice that so retail Traders see this
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delimiting here is the fact that we had a nice selloff on Thursday, and the market went into consolidation overnight. Notice what happens here on Friday. This is that old low on the daily chart. That's what we're thinking and/or assuming that it's
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time you see this event right here and this is how I teach my students to go in there and look for those types of events because what did I just tell you a moments ago about looking for significant price moves before there's a
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going to draw to, because that daily chart, there's lots of liquidity, and large fund traders, large institutional traders, institutional mindset investors will be looking at these old lows and old highs, and liquidity providers will be looking to take business in around
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when we're what we're expecting lower prices on that Weekly chart we're on the last day of the week it's already been heavy it's weak and the only thing it's been doing is consolidate and the first thing it did was broke out to the
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these same levels. So if we know that this level down here is the old daily low, and again, let me take it back up to the chart on the daily chart, that's this low right here. Okay, by dropping down
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enough to sell short here or here and didn't get out below here so the larger pool of liquidity is going to be resting here because it's in sync with the downtrend and every everybody that was short the day before they seen this High
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into the hourly chart at levels here, all I'm doing is transposing those daily levels right to this hourly chart. The entire week has been bearish. Okay, it's been going lower since the beginning. Then we had consolidation in here. The
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and let's go into those lower time frames and find out what that is okay here's a two-minute chart why a two-minute chart well 2 minute 1 minute or 3 minute or five 5 minute still has a lot of room for imbalances to occur
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market creates this short-term high and this short-term low. What rests above that short-term high, if you've taken notes and been paying attention, it's buy stops. What's resting below this low here? Sell stops. Watch closely. Market trades down initially and takes out the sell
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Inay the one two or 3 minute chart they just offer a real good Clarity the reason why because the highfrequency trading algorithms are operating on nothing really higher than 3 minutes majority of the time they're like seconds okay 15 second 30 second 45
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stops. Why would it do that first? This is inducing shorts. Okay, so it engineers liquidity. Even if the idea is that they want to take the market down to this level, if it's been consolidating, I'd like to see them do this type of move
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here it runs right on through that once this occurs on that higher time frame 15-minute time frame you want to drop down to the lower time frames and I'm using the two-minute chart because this is exactly what I was using to find that
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here where it drops down first. It's kind of like a sucker play. Anybody who has a sell stop below here, they want to sell on weakness. They're going to get tripped into the marketplace. So now they're triggered in short, and then they start
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candle to expand lower it's been expanding all week so we have momentum on our side we have a consolidation that's occurred and we had a pull liquidity engineered with these relative equal highs and the market broke out to
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doing a run against those traders and against those that were already short from this high. So what are they doing? The market's being driven higher, and the algorithm is going to attack that buy stop liquidity pool. Why would they want
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you start going through your charts and it's going to be homework for you you're going to see this occurring almost every single day and if it's not doing it this way it's doing it the opposite direction as a buy it runs the stops then we have
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to do that? Number one, it's going to punish those individuals here that went short. When it drives above this high here, it sends all those buy stops into market orders, flooding the marketplace. That gives a huge influx of willing
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what's happening is the Market's going to go right up inside that area there and that's where you want to sell now if you don't sell there you can drop down to a lower time frame one minute chart if this was a three minute chart you can
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buyers at a high price, which is the perfect counterparty to smart money that wants to sell at a high price. Remember, the market wants to go down here, so when it drives up to here, those buy stops are
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you looked at a one minute chart you'd find one down in here it's a matter of scaling down in your time frames because once you have an underlying premise to the market now likely to go lower it becomes an easy thing to look for these
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the counterparty or the other side of a smart money trader that's wanting to go short, because they're going to sell short. They got to sell it to somebody who wants to buy it at a high price. That's why the market does this. In your
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once it go up into that imbalance there and once it does that soon as it enters that area the algorithm that delivers price once you see these patterns over and over and over again it's very easy to execute on them this is what it looks
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notes, you want to record anytime a significant price move lower is expected, always anticipate some measure of a stop hunt on buy stops or a short-term high being taken out. Obviously, it's reversed when you're looking for higher prices.
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market structure break so this big candle here it breaks down look at the next candle it opens and trades higher and stops right there so from this candle's low and this CLE High when this candle starts trading soon as it opens
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Generally, you'll see a short-term low taken out and sell stops taken before you see a very pronounced rally higher. Don't take my word for it. Go through your charts, and you'll see it's actually occurring almost on a daily basis. So
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this candle's High whichever your risk parameters allow for looking at this further we're going to look at the logic in here and I want you to think about after this forms and you see that as your choice setup or entry if it starts
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we're going to drop down into a 15-minute time frame. So that same old low level down here and that high just mentioned on the hourly chart and the low on the hourly chart is now been defined with a small little line segment.
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take out a low though once that occurs then it becomes a matter of your chasing price and if you try to get in especially if you like use a market order you may see a trade right to this
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Okay, so we have a trend line here and a trend line here. That's the extent of a trend line. That's it. I only use them to highlight to my students. These levels are not on my chart. I'm watching a naked
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it's problematic you want to learn to trust going short when the Market's going higher and that feels scary at first but once you start seeing this pattern form it becomes easy to trust it and in fact that you want to be doing
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chart. While you're developing, you should have these levels thrown out on your chart because it helps you build and ingrain the idea that this is where liquidity is. It keeps you focused on that because it's easy to look at all
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downside objective well I'm going to teach you the liquidity Matrix this here is your range this is the low of the day and this is the high of the day thus far so if we take that range and split it
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these candles forming if you have the luxury watching it live and you ca—
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level highlighted then anything above that 50 level this is referred to from an algorithmic stance as a premium Market it means it's expensive now markets can stay in a premium for a while and not go to a discount which
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would be below the 50 point okay 50% anything down here is a discount if you're bearish if you're ever going short you want to look at the previous range where are you at inside that range so when this formed here that little
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fair value Gap once that formed you're thinking okay we are in a premium so algorithm will want want to go to a discount that's the opposing side of the marketplace so if it's going short here it's driving the market lower what does
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that mean the algorithm is going to start pricing lower you can have all the buyers in the world come in if the algorithm is in a sell program and it's going lower it does not matter it's going to reprice lower and lower lower
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and then what will happen is those buyers that may come in with a huge influx of volume they're going to get crushed so the Market's moving from this premium high this specific entry point to a level below the 50 of this range
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this low and this High I want you to think about what below this level here the 50 level what is resting below here cell stops so now think about the idea of Someone Like You and I that would see this ideal entry as a short we
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have to sell to get in that short how do we get out of that short we got to buy it back or cover it by buying well we're going to find willing sellers at a low price relative to this point here
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they're already sitting down air with their cell stops right below that low now look closely what else resides right near that low right there is that imbalance I mentioned okay it's only one single candle passing up and the
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previous candle's High and the next candle's low that area right there is an imbalance from this area here it went down below the 50 level and attacked these cell stops and completely closed in this imbalance so every point of this
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candle's High to this candle's low that range with the ca only going up that's a buy side imbalance it has to have an equal delivery to be efficiently priced and booked by the algorithm it goes down and completely closes it back in with
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down movement notice the candle on this here it opens and then trades down so it fulfills its role of balancing the buy side offering now the sell side offering so that is an efficiently delivered price move Precision elements from the
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entry here down to here I basically just handed you an ATM machine this repeat every single week every single week these are simple elements that repeat what you're looking for is a run on liquidity buy stops or sell stops if
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you're bearish you're looking for buy stops to be ran then a Breakin Market structure lower a short-term low being broken that's what it looks like right here shortterm swing low we have a candle High I'm sorry candle higher to
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the left with with its low here then you have the low of this candle and the next candle's higher low than this one so you have a swing low formed if you have that and then you have a break below that if
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it happens that creates a gap like this that's what you're looking for when it trades up into that you can go short or if you want to use sell stops you can use a sell stop in this candle here and
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just let it trip you in and then use the high that candle as your stop all right so I'm going to give you some homework and closing I want you to go through all the e- mini Futures Contract charts okay
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just like I showed you here these time frames go back and look at the presentation and see what the time frames I gave you listen to what I gave you in terms of audio commentary using the logic I framed in this introduction
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lesson looking for break in Market structure I also have lessons in this YouTube channel that talks about Market structure breaks and things like that and then you're going to look for the imbalance in price which is that fair
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value cap then you're going to determine where an opposing high or low resides then log and back test the number of handles you see in hindsight examples other words how much did it offer and you're going to get a collection of
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doing that the next lesson I'm actually going to show you how to go back into the charts and look for them how to log them in your journal and give you more insights about how you can find these
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setups that repeat every single [Music] week
Topics:trade setupweekly chartdaily charthourly chartliquiditystop ordersimbalancesmarket structuresmart moneytrading consistency
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