The "ONE Candle Trading Rule" is All You NEED to Become Profitable (COPY This)

This guy has mastered the 1 minute time frame and you can too.

I had one trade that we're going to talk about today. It was $100,000 Tesla trade. This is the one candle rule. It was a swing position on a higher time frame using these exact same concepts and strategies that we're going to talk about. But that trade was not a two hour multiple. Right? That trade was, you're a brand new trader or you know, you've been trading for a little while, but you haven't really seen that consistency. I typically recommend this is called fake out liquidity. A lot of ICT traders use that as well. For me, I try to keep myself pretty simple. So I would get rid of this. And what I'm looking for is just introducing Scarface trades.

In this episode on Chart Fanatics, Scarface goes through the 60% win rate scalping strategy that has allowed him to make over $3 million.

There's a lot of traders even that ask me, they're like, well, for example, if your strategy or your system works so well, you have a high win rate, whatever it may be, why can't you trade every single day? Look, my win rate is high because I don't trade these days. It's high because you don't have to come into the market every single day looking for a trade. You let the trade present itself. Like I shown you in these last two setups, these trades presented themselves to me. Here is the final trade that we're going to be talking about today. This is the one candle rule. This was a Tesla trade I took. This was $100,000 trade. But how did I set this up to actually make that money? And what did I do that helped me stay in the trade? That's the key as well because you'll see in the price action here, most people would have sold either too quickly or too late. What did I see in Tesla? There's couple confluences I want to talk about before the One candle rule. Number one.

Hey guys, before we get into this incredible episode, I want to say a massive thank you for all of your support so far on both Words of Wisdom and Chart Fanatics. We have grown immensely and are still the fastest growing channels in the trading industry. Now a way to get back to every single one of you. If you want profitable strategies completely for free, go to chartfanatics.com the links in the description play put your email in and every single week we will send you a free PDF with a profitable strategy of the guests that we host as well as on the website you can go straight there and you can go through the library of strategies completely for free. Just input your email. On top of that, we launched a Chart Fanatics free Discord community that has already over 10,000 members of traders across the world. We have our live traders from Chart Fanatics live in there. I'm documenting every single one of my trades in there and we have exclusive discounts, massive giveaways, and so much more just to give back to every single one of you. Let's not forget updates on every episode and things that we are bringing to this industry that's going to change it forever. But for now, the links for that are in the description. Let's get into this episode.

Welcome everyone back to Chart Fanatics, the Go to channel for all the best strategy and concept breakdowns with the very best traders in the world. Talking of which, today we have a very, very special guest. This is a strategy that, that is extremely simple. It has a 1-2R and on average.

A 60% win rate. It has made this guest over $3 million to date.

And he is going to break down the exact strategy step by step. It's the one and only Scarface trades. AKA Tony, AKA Raf.

Appreciate you, appreciate you having me.

You have too many names.

I do have a couple too many names. Even in the last podcast we did, you called me by like three names and people were like, what's his name?

Don't worry, everyone thinks my name is Riz1, but it's not. So at least, at least they will get yours. Right? But we're here, as I said, very excited for this strategy, you know, because not only do you provide so much alpha to the community already, but you've done phenomenally well using the exact strategy. That's the $3 million. That's no joke. And you know, the stats back you up as well. An average of a 60% win rate, you said just before we started. Actually, over the last couple of months it's been higher. 80%. Yeah, right. And that's amazing to hear. But where should we begin?

So first I just want to break down what the actual system revolves around and then we can get into some of the playbooks and the actual setups that I trade. So first, let me, let me start this off real quick and apologize. My handwriting before, but. So, for example, when you first start trading, the main things you learn is, is that you have resistance and you have support. So in between resistance and support, what you have is just price action, right? So the stock's literally just going to look like this. Okay? Now when a stock's like this, what does this actually mean? Right? What does the resistance mean? It means that there's sellers that are overpowering buyers up in this area. But then when every single time it comes down into support, what does that mean? It means buyers are overpowering sellers. So they want the stock to hold above this level and sellers want the stock to hold below this level. Okay. So that's like the most simple way to explain what this chart is doing or what stocks just normally move. Okay. Now if I asked you what happens if the stock breaks above? What are you doing in this scenario?

I'd probably look for a retest.

Retest, right? Now why would you look for a retest? This is because when you have this move right here, this doesn't actually validate anything, right? Because this move could actually come right back down and fail. This is called failure fake out liquidity. A lot of ICT traders use that as well, right? For me, I try to keep my stuff pretty simple. So I would get rid of this, okay? And what I'm looking for is just the extended move back into the resistance, which is now turned into support, right? So now that resistance that we previously had, right, we can make this green. This is now support, right? Vice versa, if the stock theoretically came back down, right? This support is now turned into resistance for that downside move, right? So in the most simple way, how are buyers and sellers interacting with the market? And so a lot of people will be looking at pattern trading. They'll be looking at one specific thing. Maybe it's like, for example, like a bull flag move and then continuation, right? However you look at it, that's fine, but understand what's going on behind the scenes, right? And that's the most important part, understanding the context of why you're trading, what you're trading now. So like I explained, right, say we have resistance up here, right? We break out, we retest, right? So this is, let's just say it was consolidating, right? And it was coming back to the upside. Now in this scenario here, okay, we know this is first resistance now turned into support. Now at this support level, what are you doing? Are you just going to buy it mindlessly? Right. What would you, what would you do in this scenario? Like what would you wait for?

I would hope to wait for confirmation, I imagine.

Confirmation.

I imagine there's people out there who would just buy.

Exactly, exactly, Right? So this strategy, in my opinion, is extremely simple to understand. However, there's a couple factors that make it more High probability. Like you're not going to get, you know, a 60% win rate just buying the retest. That's not how that works. So now in this area, we have to wait for some level of support to form or buyers to basically tell us that they are stepping in and overpowering sellers. Because we know if it breaks back below. Right. Then what happened? That means sellers overpowered buyers. Okay. Right. So if we use this example right here. Let me get rid of this. If we use this example right here, this is where we have to understand price action just a little bit right now. For price action, some people use order flow to understand what's actually going on on each candle. I think that's a little bit overkill. It works. But for me, it just because I'm trading so fast, I need to understand what's going on right away rather than waiting for too much confirmation. Right. Because you don't want to hesitate on the entry either. So for me, what I'm looking at here is buyers to step in near this level. Okay. And show me. Right. So for this candle, for example, what does this show us? Right. This shows me that the stock or the candle opened up here. Okay. We brought it down. What does it mean when we're bringing it down? It means that at this level, sellers were overpowering buyers. Yeah. And then when we bring it back up from the lows all the way up here, this is a hammerstick handle, obviously. Right. If we bring it all the way back up, what does that show? That even though sellers were stronger than buyers, at one point of this candle, buyers were still able to hold it above the key level, which is the resistance now turn into support. And we can clearly see that there was a fight between sellers and buyers, and buyers won. Okay, so now that we understand this, this is where I'm taking my entry. Right. For the continuation to the upside. That's the most simple way to explain the system that everything revolves around. It's simply the interaction of buyers and sellers and the interactions of simple support and resistance. Now, I just want to preface this as well, some people especially, I feel like nowadays a lot of people trade ict, smc, you know, maybe even more complicated strategies. For me, the one thing I realized works really well is, is especially if you're a new trader, when you are trading those strategies, it may be a little bit harder to understand the entry model because, for example, like I'm sure you've seen, there's some str. And I'm not saying this doesn't work. It definitely works. Whatever it may be. Right. But like there's entry models right. Where like you need to have like six confirmations of price going up then coming back into like a fair value gap, then making another order block like whatever it may be. Right. For me that just doesn't work. So for me, what I've realized works simple support and resistance and understanding this is the most key the interaction between buyers and sellers.

Okay, what time frame are you observing sort of this price action interaction on?

Sure. So when we get into the examples in this video, I think it'll be very, very clear for everyone to understand exactly how to trade this strategy. But for this specific scenario, you can trade this on any time frame, any instrument and any market. For me specifically though, I trade from 9:30 to 11am Right. And that's Eastern time. So I trade from 9:30 to 11:00am Eastern. That's the only time I'm looking at it. It's the New York Stocks Exchange open. There's a lot of volume and so I can be done today pretty quickly. Now in terms of the time frame, I primarily trade on the one minute timeframe. Okay. So when I'm looking for my entries, I'm looking for the 1 minute time frame. However, when once again we get into those other playbooks and the setups that I actually trade that revolve around this strateg, there's always going to be the different timeframes that we're looking at and that's just so we have a better clue and context of how the market actually moves.

Definitely. So you're not just looking at support and resistance that's formed on a one minute timeframe and then looking to execute based on the retest and confirmation. There's more context around that depending on the playbook, 100%.

So the reason I wanted to explain this is just so you understand what the system entails, what it is, how it works. But of course it'll get a little bit more advanced. We're going to try to keep it as simple as possible, but it will get more advanced than this just because you have to understand if it was as simple as resistance breaking and buying the support, you know everyone. Exactly. Anyone could do it. There is context behind this trades and when we get into real examples it'll be much more simple to understand. But for right now, what you, what we need to understand is just simple support and resistance break. Now this was the bullish example of that.

One thing I will say is quite interesting you mentioned that because I think people here simple and they Assume, oh, you should be able to just break it down in front of two minutes. But the reality of it being, yes, it's a simple concept, but if you want to learn something, you still need to learn it in depth. And we're going to explain it in depth every single time, regardless of, you know, what you may assume is simple doesn't mean quick. Simple just means that it will be, as you know, you pointed out perfectly, it's not a system that requires 6, 7, 8 confirmations and different things to be able to identify and execute your trade. And I think that's quite powerful because for some people that might be what they need, right, to have the confidence to execute. But for a lot of people, I imagine it will actually hold them back because of the amount of information they need to process before they can even take action. By which point, a lot of the time they probably will hesitate because of the amount of things they're trying to look for. And the being able to confirm them all together as well, I imagine is probably hard to spot within a market, especially when it's moving so fast.

So to answer your question, right, one of the main things like you mentioned is for me, when I first started trading, I was still a teenager at the time. And so I tried a bunch of strategies. I've tried literally every strategy to find one that works for me. And I always come back to simplicity equals profitability. And that's simply due to the fact that when we have fast moves in the market and you're looking for 100 different confirmations, right. Even for example, right. Let's use this bearish example of this support and resistance kind of come back for the retest, right? Now if it's coming back for the retest, let's say it's making a candle that's weak like that. Right? Now if I'm looking for this and then I'm also looking for volume and then I have another indicator coming in here, right. That's just too much noise for me personally to be looking at all of these. And then especially if you're on the one minute time frame looking at all of these and then looking to enter, it's just you're going to either hesitate on the entry or you're going to be too late to the entry. So for me, one of the main things is this right here, this setup, the only thing that you really want to focus on, like I said, is buyers and sellers interaction. But that happens through the candlesticks. And understanding price action. Yeah, right. So understanding price action for Me is key. And similar to how you said you don't want to hesitate on the entries. When we get to the pros and cons of this strategy as well, we'll talk a little bit more about that as well. But you do not want to hesitate on the entry because the entry is where you're going to make the most money. And then your exits, obviously we'll talk about that in a second as well.

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So with this, this is going to be the short version of the bearish side. Now in this example, what are we looking at? Right? So we know previously we were looking at that break and retest to the upside. In this example, it's the same thing right now this one, right? For anyone that knows price action, this is an inverted hammer stick candle or a shooting star candle. Whichever one you want to call it doesn't really matter. But what does it show? Right? This shows. Now at this point of the video you should understand sellers are overpowering buyers on this whole candle. Okay, buyers did try to bring it up at one Point, this was a green candle, right? So at one point, just to kind of demonstrate how this candle looked, this candle, when we opened up right here, right, it moved up like this, right? So it was a full bullish green candle. Yeah, Right. But then after we started coming down, now all of a sudden, right, the candle made this wick and then of course we moved to the downside and then it became a red candle. Okay? So understanding that is really, really important of how the candlesticks form. And now once we have this, we're looking for weak price action. We got the weak price action and then we're looking for a move to the downside. Now, once again, the key here is also the risk management. I personally like to go for at least a two hour multiple. Now, this means for every $100 of risk, I'm looking to make $200 of profit. Okay? In the most simple terms, that's what I'm looking for. On an average trade, I have trades. When we get into the examples, I had one trade, for example, that we're going to talk about Today, it was $100,000 Tesla trade, right? It was a swing position on a higher time frame using these exact same concepts and strategies that we're going to talk about. But that trade was not a two hour multiple, right? That trade was much, much higher in our multiple due to the fact that if you use this strategy, right, you can scale out some at, for example, low of day at this, at this point, right. You can scale anywhere from 25% to 50% right. At low of day. Now, low of day may give you potentially maybe even a 1.5 right to that. Two are that we're looking for. But low of day for me, right? I take this because this is simply locking in realized gains, right? So we're just going to do real gains. Real gains, right. This is simply locking in that real gains that we want to see. Because your account is not going to compound if it's a small account, if it's a big account, it's simply just not going to compound if all you have is unrealized gains. Right? So we need to always lock in profit. For me, that's that 25 to 50% at that low of day level, depending on how strong the market is. This strategy is very based off of the context of the market, which we'll get into with the examples. But this is overall the actual system behind the strategy. We're looking for that 2R, right? We're looking to scale in and out of trades. We're looking for that lower time frame entry model. Right. And then we're also just looking for the buyers and sellers to interact with price. Right. So the system is very clear now. But now let's talk about the three setups that we actually have within this.

Before we move on. Just really highlight. And I think it's very important because a lot of people may hear shooting style, invert hammer and assume that's just the basics. That's not, that doesn't work. But in reality, it's not about the, as you said, the name. It doesn't matter what you call it, it's what you pointed out, which is the interaction. What does it represent? Because I think you mentioned earlier, some people will go into, say, order flow and start going into trying to identify exactly where those buyers and sellers are and how many and you know, the difference between them, which is obviously powerful and useful for those who sort of resonate with that. But it's not necessary, as you've shown, because the candlestick itself, if you're able to identify and be able to actually resonate with what's actually happened and understand it, as you pointed out, is, is what's important. Right. It's not about the title of it. It's not necessarily about having to make sure you have the order flow and you're dissecting that chart. It's actually just making sure you understand that interaction and so what that represents. So, you know, some people talk about wicks and then bodies and then all this, but in reality, again, what does it boil down to? And as you mentioned earlier, some people will argue like SMC is a better way to trade or this. And I've always said that every type of trading, regardless what it is, in the end it's just buying and selling.

Right?

So as long as you can understand that, then you're, you know, you're at least following what the market's doing. So I just wanted to highlight that because I know that maybe some people out there who hear candlestick closures or candlestick pattern names and assume, you know, maybe get put off because they think it's the basics, whatever, but in reality that is trading. Trading is, and boils down to how well you can interpret that, the buyers and sellers and the interaction between them and being able to identify, as you said at one point, this candle was purely bullish. They fade. The buyers failed to push price higher and the sellers took over. That's what matters, that interaction and that understanding of that interaction. And then obviously a company, I think that's A really important point you made actually in terms of yes, you have your strategy, but what matters afterwards is then how you utilize that strategy, the rules around that strategy. Because I think a lot of people put so much weight into just the strategy itself that you're learning versus that's, that alone won't make you profitable. Right. It's about how then you build your rule sets that creates a system and edge. And then of course there's your trade management, your execution, etc. But yeah, sorry, we can move on.

Yeah, no, well, I was just going to say based off your points that you just made, that's really important to mention. Now the reason I was, I said order flow earlier is because when you're looking at order flow, it's the same thing, right? You're looking at what's actually going in the anatomy of the candle, which is good. If you want like super, super precise entries, it's. You can look at that, that's completely fine. You know, if you're using that for me though, the thing is when you're, especially if you're a newer trader, you want to basically look at what's going on on the actual price action candle. Because at the end of the day, even when you're using order flow. Right? Yeah. You're using, you know, the order flow. You know, chart looks like this, whatever it may be. Right. But it's telling you the exact same thing. These two things will be telling you the exact same thing. This one just easier to understand. Yeah, right. And you can still have a pretty good entry. You may not have that exact pinpoint entry where buyers and sellers are interacting, but it'll be so close where over the long term, which we know trading lot of long term stats matter the most. Right. Over the long term you're going to have the same stats. Right. So that's the key based off what you said as well. Now let's start talking about some of the actual setups. So the first one we're going to talk about is going to be the one.

Candle.

Candle rule.

So the first setup that we're going to talk, we're going to talk about today is going to be the one candle rule. Now we're going to. We already know, I already said the basics. Right. What we're looking for is a stock to break out retest. That's simple. Okay. Now what does a one candle rule entail? So if we have for example a resistance at let's say $100. Okay. And this is a resistance. If we have a stock Coming up to this level. Okay. Moving up, moving up. And you can see these upper wicks kind of coming in on the stock as well. Right. Stronger push up. Right. Upper wick. And then when it comes up into this resistance level, we do this, right. We have that down close candle there.

Right.

We may put in another down close candle here as well.

Right.

And then buyers decide to bring it back to the upside. Okay. So we bring it back to the upside just like that. Now when we're looking at the retest, what do we want to look for? We know that this was first, like I talked about, resistance. Now it's turning into support over here. Okay. Now what is a little bit more like we talked about confirmation? We're looking for those entries. Just support and resistance is fine to understand the system, but that's not how I'm entering based off of my actual system. Right. So. Or strategy. So when we're looking at this, we know that the stock needs to come back into this level. That is key. We already know that. But what gives us more confirmation or maybe even a little bit of leeway to enter the stock? Because if we're looking at support and resistance, this is, this is a line, right. We, we're not going to have the precise entry right. On that line. We need to have some sort of, you know, for example, we need to know where our stop loss is. We need to know where our exact entry is. We need to know it's not going to be the exact, you know, candle or the exact resistance turn into support. Right. So when we're coming back, we have to understand buyers and sellers. This previous red candle or down close candle in this bullish one candle rule, what does this signify to you?

Signifies the sellers try to step in and hold price below resistance.

Exactly. Right. So this was a resistance. Sellers try to step in. Now if we move this over right. Just like this, right. We just kind of mark this one out right like that. Now when we come back, we know that there was sellers here. Okay. There was sellers here trying to hold this down. So this next time we come down, what's going to happen? Right. Buyers already brought it up here. Right. So sellers were there. Buyers brought it up. So they took out their orders. Right. So their orders are now mitigated and now buyers stepped in and they're, they're, they're overpowering sellers. So when we come back into this area, what we're looking for is to hold, yes, the resistance and support. But more importantly, this one candle interest. Right, One candle. That's all it takes. We're looking at this one candle. And once again, this works on any timeframe. I specifically trade the 1 minute, you can trade this on the 5 minute, you can trade this whatever you want, right. I know traders that trade this on the 15 minute time frame, one hour time frame. It works the same. Now, when we're looking at this kind of pullback entry in here, right? Now that we understand what the one candle rule is.

Right, what are we looking for? It's not just coming back into that area, right? It's coming back into this area. Okay. Say something like this, make a smaller candle and then it comes in here, right? It puts in that wick. Now you can see for me one of the main things when I'm looking to enter, right? We'll zoom in on this a little bit closer, right? Something like this. This is what we have, right? When, if first, when this candle was developing at first into this one candle rule, right? Let's just say the one candle rule with like this box right here. Yeah. Okay, so we're just zooming in over here. So when this candle was first developing, right, this was a bearish candle to the downside, Simply like that, right? Now the fact that this was a bearish candle to the downside, what does that show sellers once again, overpowering buyers. That's fine. We understood this at this point, you should understand that concept, right? But then when we brought it back up, right, and the candle closed like this, what does that mean? Buyers stepped in. But what's important about this and what you need to understand is waiting for, for the candle close. You have to wait for the candle closure before you're entering the trade. That is key. If you don't wait for the candle closure, this candle has it. Every single candle that I've shown you here, right? All of these candles have closed. When you're back testing your trades, right? If you're back testing your trades, most likely you're waiting for the candlestick to close before you're looking for that entry. No matter what platform you're back testing on, some people may not, but for majority of traders watching this, I know you're waiting for candle closures. But then when you go into the real market and you're looking for this, you're not even waiting for the candlestick closure, right? You're just entering based off of the fact that it's touching the level. Or maybe it may, it may even look like this, right? It may look bullish, but then in the very last 10 seconds, it may come back down. Right. So like. Exactly right. Like for example, if that was a support, it may still come down and close below that level. We don't want to do that. So waiting for candlestick closures, once again, I trade on the one minute timeframe. So you just got to wait a couple of minutes here. Yeah, right. Waiting for that is really, really key. Okay, so one candle rule, knowing that sellers were overpowering buyers first, then buyers stepping in, buyers need to hold this above here, right?

Now they have to hold above the one candle rule sort of area or the support resistance line.

That's a good question. So when it holds above both. Right. So let's do that over here. When it holds above two of them, Right. So it holds above the support and it holds above this. This is a super bullish trade. Right. And this could be considered an A plus setup. Right. So the A plus setup is if it comes back and it holds below both levels. Right. Now if it holds above one which is, you know, let's say one which is maybe support or resistance or the one candle rule. Well, technically, if it holds above support and resistance, it's holding above the one candle rule. But if it's holding above the one candle rule, you have to be careful. Okay? Why do you have to be careful? You have to be careful because now you're looking at price action. So let's say, for example, we're going to zoom in on this example here. Once again over here. Okay. Actually let me draw. Let me erase this last one here.

So it's like this.

Right? So this is the one candle rule, right. This is the box. And then we have the support in here as well. Okay. Now let's say in this area, the stock came down and it held the one candle rule like this, right. So the candlestick closed above the one candle rule over here. Okay. But it didn't close above the support and resistance. Right. In that scenario, you're waiting just a little bit more. Okay. You're waiting for the candlestick to show you buyers re stepping into the stock and then you enter, right. To have that really, really high confirmation entry. Now, to make this, we'll talk about this when the examples come. But if we were to make this a little bit more advanced, obviously there's a couple things you can look for, such as higher time frames. So if you were, for example, if this is the one minute, but the five minutes looking really, really bullish, then of course you can come down and maybe take that more aggressive entry. But this would be the most conservative Safe way to play. And that's just basically waiting for it to break back above the support slash resistance and then also coming back into one candle rule and showing the buyers are stepping up.

I got you.

Yeah.

So it's just having that, if anything, extra patience. We already explained how hard it is to maybe just have patience for one candle to close. So in this case you need to wait for it to turn into one. Would it still be classed as an A plus once it confirms or is it more so? It's still a good setup and obviously valid trade to take, but the A plus is reserved for when that one single candle has managed to come down and then close above.

So let me, let me ask you a question to answer that question. So let's say for example, right for, let's say for this one, let's say right comes up, right. What will really happen here on the one minute, sure, on the one minute, right, we close below. But what is a two minute looking like? What's a five minute looking like? What's. You know what I'm saying? So on the one minute, this is an A plus example for sure, right? Because on any time frame, because it's doing this on the 1 minute it closed above that level. Yeah, okay, but on, for example, the 5 minute, this still may be an A plus setup because technically the 5 minute candle didn't close. You get what I'm saying? So it depends on the context of the trade at the time, right? It depends on what the other time frames are doing. But in my opinion that's still a really good setup. I'd still classify that as an A setup, maybe not an A plus set up, depending on what the 1 minutes doing, what the other time frames are doing. But I still consider that a good setup.

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In terms of I know you use this on the one minute and that's what we're focused on. But as you mentioned, like knowing traders who use different time frames, is there any differences you've noticed at all when it comes to, you know, using higher time frames when it comes to execution?

So for this once we get into the example, so this exact strategy basically was the reason that I was able to make a hundred thousand dollars on the Tesla trade that we're going to talk about. It's a swing position and that one was on the hour time frame. So we'll talk about that when it comes into that. But this exact, this is the only example that we did have a higher time frame. For the other ones we're going to talk about lower time frame. So if you're scalping, right, it's going to be easier for you if you have a job, if you have, you know, you have work, other commitments, the other systems. And this strategy does work, right for that. But if you want to swing trade as well, right. Then this is going to going to be good for you as well.

And you mentioned earlier though that you're trading only between 930st to 11, right? Is that where you specifically can use this or is that just the window of opportunity you like to focus on?

Yeah, so when we're looking at 9:30 to 11:00 clock, there's a couple of reasons I trade that, right? So the number one reason I personally trade that is because when you're looking at the New York Stock Exchange open, where is the most volume in the day, right? It literally stops at 11am After 11am there is basically no, there is volume, right? But you're going to have, there's no way I'm trading the one minute after 11:00am, right. The one minute is really good. Right into the open, quick moves, quick volume, fast momentum, in and out type of thing. Right? But and especially if you can catch a good trade like this, for example, let's say you catch this at like, let's say this was like for example, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 minutes into the open, right? If you caught this trade and this was a momentum day. Sure. We get, we talked about, right, that two R multiple, right. So this may have been the two hour multiple at high of day, right. You sell 25%. But now for the rest of the day you don't have to monitor the trade. Let's say you take 25% out there, 50% out there, you already realized, right? You put your stop basically right here, right? Your stop doesn't change because market structure doesn't change and then you just continue this trend to the upside. So yes, I trade from 9:30 to 11am that's what I'm looking for, an entry, but I'm not looking for necessarily looking for an exit before 11am I may ride this trade all day, right. Considering on how much strength it has, looking for that upside. You get what I'm saying? So this is the bullish one candle rule. Once again. This is going to make much more sense when we get into the actual examples. Right.

Bearish would just be the other way around.

And bearish simply would just be the other way around. So we don't have to make this like a whole other thing. All we're looking for bearish.

Is literally the. For example, right. All we're looking for is the down close candles now. Okay. And then the up close candle here, Right. Something like this.

Right. So if this was support.

The stock basically just has to break back below, retest into this level. Right. And then you just mark out this level right here. This is now the one candle rule. Looking for the downside. That's it. Okay. So that's the one candle rule. We'll talk about this a little bit more in the next examples. But let's go over to the next setup.

So the second setup we have here is the first candle rule. Now what is the first candle rule? For the first candle rule, what you're going to do is there's two ways to play this. We're going to talk about the new way that I've started playing this because I, for anyone that's watched me before, you guys know the five minute opening range. But if you haven't, right. We have the 5 minute and the 15 minute. Now this one I just started talking more about online because I think it's more precision, especially in this market that we are in currently. And so for the first candle rule, right, what you're going to do is you have your first first candle of the day, right? So your first candle of the day, you're going to mark out the high of that candle. Okay. And you're going to mark out the low of that first candle. Now you may ask, what candle is this? This is the first 15 minute candle. Okay. So the first 15 minute candle from 9:30am Eastern time.

Right. So 9:30am eastern, when the market opens, you draw out the first high and low of the first 15 minute candle. Now from this we know, right, this candle may have looked something like this, right? And then let's say maybe it went up and like this. Okay, so it may have looked something like that, Right. And what is this time frame? This time frame is a five minute time frame. Okay? So from the 15 minute, this is how the candle developed. On the 15, this is the five minute time frame. Now on the five minute time frame, there's three steps to this, right? So first step is to draw out the 15 minute candle. The second step is to go over to the five minute time frame. And now what we're looking for is very simple. We're looking for either a break above the 15 minute or we're looking for a break below the 15 minute. Right? The in the best part about this is you don't need a daily bias. You don't need to come into the day with, you know, a thesis or anything like that. You can simply just trade the price action that the day presents for you. Right. Now why are we looking for the five minute candle closure? We're looking for the five minute candle closure because now this confirms that buyers are indeed overpowering sellers at this high. And what does this also confirm? Because for the 15 minute. Right. We could also some may say in the comments, right? Why don't you just wait for the 15 minute candle to close back above, right? That's 30 minutes in, right? I got stuff to do in the day. I can't do that. You know what I'm saying? So for me the five minute works because it is still enough precision and it shows me that buyers indeed are stepping in. Okay? And so second step, wait for that five minute candle above or below the 15 minute. And then the third step over here, right. Is now we're going to go over, let's draw this above like this, right. And that we're just going to use the line here, right? So for the five minute we broke above, right? This is all that, that action that I showed you here and on the one minute, right? So this is the one minute.

All we're looking for is like we talked about at this point, the retest back into the key level looking for continuation. That simple. Okay. So we're looking for that either for that bullish side or once again you can look for that downside as well. But why is this a high confirmation entry model? That's the key. This is high confirmation because for the first 15 minutes we let the market develop. We know in the first 15 minutes, right. And we, in the previous example we said that we were done the day or we entered the trade within the first 10 minutes. That's a more bullish day, right? There may be other confluences there on that day which we'll talk about when we get to the examples. Right. But for this example when you let and you come in with no bias, nothing like you literally just come in and you mark out that 15 minute opening range for the first candle rule. We know that for this to specifically work, we're getting rid of all that first initial volume because there may be too much volume. Right. If you're a brand new beginning trader, right. You may not want to trade the first 15 minutes, it may be too bullish or, sorry, it may be too volatile for you. Right. And so when we kind of get rid of that 15 minutes and we rather use that as support and resistance and we wait for the five minute candle closure, all of that noise goes away. Right? All of that noise goes away. And now we can simply look for the retest on the one minute exactly how we were earlier. Bearish side, exact same. Right. So if you were to, based off these two setups that I've shown you so far, right. Which one would you say is a little bit more simple to understand for you, at least for, for both of.

Those so far, I'd say this one stands out as more simplistic, very specific. Right. Especially in terms of timing wise and what you're looking for.

Exactly. So for this one, once again, we're also trading 9:30 right to 11:00am that doesn't, that time frame doesn't change for us at all. Right. And for this one, once again, this is going to be much more precise in choppier markets. Right. So one thing that I, that I didn't talk about yet is what markets do I trade? So.

Let'S do three here. There's three type of markets, okay? There's obviously the bullish market to the upside, right. There's the bearish market and then there is this. Okay? If you are a trader, one thing you have to understand, depending on what your strategy is, especially for this strategy, we don't want to trade this, right? This, there's not enough momentum in this range, right? You're going to catch smaller moves because you're not going to be able to catch continuation as well. And so for us, we want to catch days like this trending easy, simple days that we can make the majority of our money on. There's a lot of traders even that ask me, they're like, well, for example, if your strategy or your system works so well, you have a high win rate, whatever it may be, why can't you trade every single day? My win rate is high because I don't trade these days. Right. It's high because you don't have to come into the market every single day looking for a trade. You let the trade present itself. Like I've shown you in these last two setups, these trades presented themselves to me. I didn't have to come in and be like, well, I'm looking for this. This could theoretically be like a fair value gap. Let me enter here. You know, it's very systematic on what I'M doing. I'm waiting for the entry. Right. Very mechanical. The only I would say for, for most of my setups that I'm going to talk about today, majority of them, I would say it's 90% mechanical. Right. And then 10% discretionary. Okay. And the discretion once again comes in when that entry is happening and how the actual market is moving and how the actual price action is developing that you learn over time. So this 10% is extremely important. Don't get it wrong. It is very important. Right. But you're going to learn this through experience. That that's the only way you can learn this. Right. Like there's nothing else that you can do except just keep consistently trading these systems, these systems and setups. The 90% you can learn honestly within three to six months, right. That this part you can learn pretty quickly. This part, it's going to take you a little bit more time.

Definitely. Yeah. And I think a lot of people don't respect that, you know, don't respect that. They hear it and then they think, that's not me. I can be the one to speed that bit up. But they just have to allow the time just to clear one thing up though. With this, does the candle have to print exactly like this or is it literally just whatever the high and low of that. And when you say high, low, is it the close or the wicked?

Good question. That was a good question. So for the 15 minute, the candle can look like whatever it like, literally, if the candle came in, right, it was a doji candle. I don't care if it was a bearish candle. I don't care either. What I'm literally looking for is just the break and the break above on the five minute, right? And then the retest on the one minute. That's all I'm looking for. So the candle itself can print however it wants. Now, in terms of should you do the wicked or the body? This is where this comes in. Okay. This is where. That was a good question. This is where you need to understand where you should have it. Now, for the majority of new traders, like we talked about, technically, what is this? Right? So let's say we do do the actual wick here, right? If this is it, let's say we're moving to the downside, right? We're moving to the downside here. Broke to the downside technically on the 15 minute, what did this create? Right? We move to the downside. This is a green up close candle. What did this create on the fifth, or let's say on the five minute, this was the one candle rule, the setup that we talked about last time, right? This is the one candle rule. Now. So technically, right, you can draw this out, but this, the actual entry would still be within this kind of small zone here. Yeah, that's one thing, and that's why this was a good question is because you have to understand you're not going to get that precise entry, right. We're looking for those kind of small zones. So whenever I do draw support and resistance, and I talk about this all the time when I draw support and resistance, that doesn't mean that I'm trading that exact level. It's the small zones around it that I'm trading. I'm just not going to draw out the zone. Right. Because there's no point of it. Right. You just kind of have to understand that we're looking at that kind of small zone and looking at price action to gauge that entry.

No, I love what you mentioned there though, in terms of. That's where this question comes in because I think a lot of people assume, okay, something has to always be the exact same all the time. But as we know, like 90 of your trades could be like that and probably will be like that. But the market is always so different and never identical. And even if you have a specific system and playbook, like we've gone over now too, where they are specific, they have specific times, specific rules of how to, you know, observe and then execute upon. But equally though, the market is the market, it always looks different and it never is feels the same depending on the day. And the volatility or the catalyst within that market or maybe even news on that particular day can make things slightly adjust, you know, and being able to use that discretion and I think again, back to your point, which is so important is giving yourself the time to build that, right? Because it comes from your repetitions, right? You have to be able to observe the market time over time, over time to be able to develop. And again, it's gonna. The funny thing is it's gonna be different to the person, right? The same, let's say you have someone who started at the exact same time as you, has traded the exact same markets, time frames, everything. They're going to have their own sort of edge that they've noticed because of the reps that could be completely different to yours. And the neither is right or wrong. It's actually right for each person simply because that is their perception and what they've been able to see within the market.

So it's funny that you say that because I trade break and retest and he actually someone in the room also trades break and retest with me. Right. We both learn, you know, very similar. I, I kind of taught him a little bit as well. Right. But for example, he caught a Tesla trade today. Right. That was. Or, sorry, an Nvidia trade today. Right. That was the break and retest using the same setup that I'm teaching today. Right. But I caught in Nvidia trade, which was a different trade today using another setup. Right. That we're going to talk about today as well. Right. So similar to how you said we trade the exact same thing, we trade the exact same thing. So why didn't I take that Nvidia trade with him or why didn't he take that Tesla trade with me? Right. It's because this right here, okay, it's because, yes, it's mechanical, but every single trader will see different things when you trade this. For example, the first candle rule. You may trade this on ES and Q. Right. You may trade this on Tesla, Apple. I trade options and futures myself personally. Right. But whatever you trade this on, this will work. It just depends on how you specifically trade and most importantly. Right. How much experience and how much backtesting you've done to really understand how to pinpoint these entries. Because yes, it's to time simple, super simple, but you need to understand that the data will show you how to enter without hesitation. That's the key.

Definitely. No, I love that. And I think it's so important because again, the 90% is what we're going over right now. The 90% is what everyone, most people at home need to be implementing into their trading, whether it's this or some other concept, regardless, that work on the 90% needs to be done. And I think what happens is most people, when they're meant to be in this phase and focusing on this phase, they're too focused on trying to do this. And by doing so they end up taking two instead of doing, let's say three or four steps forward and one step back as the usual sort of the right journey is. Instead it's the classic one step forward and two back or three back because they're so focused on trying to be a, you know, use their discretion when they haven't actually built the reps. And I think discretion, a lot of the time people try and sort of relate to intuition which then a lot of people relate to just how they feel, you know, so if they're on the one minute chart and they I think this could be a buy and then they just do it versus again, 90 of the work's done. You know, you built your reps, you've. You've really understood the playbook and then over time you gotten to a point where you go, actually, I think I should execute in this manner or I should be marking my high or low in this manner is based off how you said backtest, time, effort, reps in the market when you've already done this. And again, back to. I think a lot of people unfortunately make the mistake of trying to do this, focus too much on this. And I think a large part of that actually, you know, is the fact that a lot of people who are trying to do this bit is because they've already traded for two, three years and not seen results, but they assume that that's reps, right? And I think that's a good thing to highlight, is that reps isn't just how long you've been trading or, you know, been interested in the markets. Reps is how long you've worked with an actual specific playbook that has rules, that has a system, and you've actually spent time on that specific system, not just as a trader as a whole.

That's a perfect point. I think I say this all the time. Your trading doesn't begin until you have one proven system. Before that you're gambling, right? When you're jumping from strategy to strategy, you're simply gambling. There's nothing that you're actually doing that is working, right? Because you may trade the first candle rule one day, then you're going to trade the one candle rule, then you're going to trade the next setup that I'm going to teach you, then the next one, then the next one. Like you're just trading so much, right? That it doesn't make. You don't even know what you're doing, right? You're just looking to make money on something, right? And that's not key. It's about back testing all of the. All everything that I say today. You can go and back test it, right? Like, it's pretty simple. I'm laying it all out. Go backtest these, see if it works, right? Once you see it works, then start forward testing it, right? That's how you're actually going to see that consistency over time. It's not just going. And like you said, it's not just because you traded for two years, you're magically going to one day wake up and be profitable, right? It's putting in those Smart work to become profitable. Hard work doesn't always mean that you're going to, you know, make it like it's all about smart work and hard work both combined and then you see the actual proven results. One thing I did want to mention, just for the discretionary here, sizing, right? A lot of people talk about sizing for the first all of these setups I size the same. So for me it's a little bit different because obviously I've been trading for a little while now. So I may come in with 50 to 100 contracts. Okay, that's a decent amount. For example, if you're trading Tesla one contract, for example, maybe $10, right? So like a hundred contracts, that's a pretty big position size for scalping intraday, right. For most people that are brand new, I genuinely recommend if you're a brand new trader or you know, you've been trading for a little while, but you haven't really seen that consistency. I typically recommend two to three contracts, right. The reason I recommend two to three contracts, especially for trading options, is due to the fact that if you're trading two to three contracts, you can learn the scaling out of the trades as well. Because we talked about, for example, this trade, if we come back up to high of day, this may give us a 1.5, right? This may not be the two are that we're looking for. So you scale one here, right? And then you let the other one ride to the upside. That other one may make you more than this 1.5. It may make you 5 or 6 or whatever it may be, or it may come back down, right. And you may lose money on that trade. But, but it's about learning that. Because if you can learn that with two contracts, you're going to learn the exact same lesson with those two that you are with the 50 and 100, right.

Less pay.

Exactly right. One of the things that I always talk about is the university example. If, if me and you went to the same university, right, with the same course, same program, we even went to the same parties together, right? We did everything, we got the exact same experience. But you paid $10,000 to go to university for your tuition and I paid 50,000, I would be pissed. You know, I'd be pissed, right? And the reason that is is because we did the exact same experience. So for most people watching this, it doesn't matter if you are have a really high income, you know, job or whatever it may be, right? This is what you want to do because you still are going to Learn the same lesson with those two or three cons that you're going to learn with 50 and 100. So I just wanted to make that very clear, just as risk management, especially if you're, if you're learning to trade. But that is the first candle rule in a nutshell.

Love that. Yeah, no, that's a great analogy, by the way.

So the final setup that I'm going to be talking about for the third playbook is going to be the pre market setup. Now what's the pre market setup for me? You know, there's so people, once again, for all these setups, you can trade it on crypto option, you know, options, futures, forex, stocks, whatever you want to do it on. Like I said, I trade futures and options myself. Now when we're looking at this for pre market, this is going to be 4am.

To 9, I guess 9:29, right. 9:29am and that's going to be eastern timing. Okay, so all the data that you have in between these levels, right? Let's just say we have this data in between these levels, right? So we have a clear high and we have a clear low in between these levels. Now we know what's the time frame that I trade.

Right? I'm trading from 9:30 to 11:00am and then what's that final kind of time frame right over here? Right. This is going to be 11:00am to 4:00pm okay. This is all in eastern timing once again. So when we look at this, this data is now the exact same, right? So what was happening in pre market? Pre market? Of course there's not too much retail that's trading pre market session. Right. If you're trading pre market session, you. I don't know what you're doing. But you know, when you're, when you're trading pre market, right. What are you looking for? You're looking for these highs, right? Same kind of scenario, right? Highs. And you're looking for the lows here. Okay. Now if we know 9:30am the stock is breaking out of the pre market session, what does that mean? It means instantly buyer stepped in. Right. Now this is going to be more of an aggressive setup you could say, right? Because you can trade this like the first one or two minutes right into open, right? But when we see this, what are we looking for? We're looking for that instant pullback into that key level. Okay? We're looking for that instant pullback into that key level, looking for continuation to the upside. That's it. Right? For this one, this one's Very, very simple. But this one, if you are a more aggressive trader, this is going to suit your personal personality, right? Sometimes. And I'm going to preface this in a second here, but for this one, sometimes what happens is if the higher time frame, and we'll talk about this in the examples, right? Let's say we have the four hour time frame here, okay? We have the four hour time frame here. And on the four hour time frame, what we're seeing is a break above, right? So this is the four hour kind of uptrend here. And then we're seeing this kind of consolidation pattern like this. What does this mean for us? Well, for us, this means some people may call this a bull flag, right? You can call whatever you want, right? You have the resistance, you have the support. Now we know there's three ways of stock moves. An uptrend, a downtrend or sideways action. So sideways action, like I said, I don't want to trade it, but it's not bad because you need to understand context behind sideways action. So for me, when I'm looking at this sideways action, I know that buyers have stepped up so aggressively here, okay? Now what's going to happen? Sellers, because we're coming near that resistance, want to bring the stock down. However, buyers don't want the stock to come down. So we're consolidating why? Because this is where that fair price is, right? Fair prices over here. And also we want to keep this stock above this previous. May there be support here, whatever it may be, right? And so when we see this and the stock may be breaking out or gapping up, right? Gap and go. We'll talk about that in a second, right? If the stock is gapping up, what are going to be the highest key, highest probability levels? Right into open, right? We know the first candle rule is there, we know the one candle rule is there. But those are intraday setups. We can't come into the open and be like, okay, we're going to, you know, get into this right away, right? We got to wait for either the 5 minute close, 15 minute close, and then one candle rule. We have to wait for the candle to develop this one right away. We can get in, right? Because we can get in the second it breaks above the pre market high. All we're looking for is a retest. This may honestly, the first candle may be this one minute right here, right? We may have maybe one more candle for a little bit more displacement. And then this right here, we're just looking for that retest. That's it, right? That simple. And then we're looking for that upside movement or we're looking for that downside movement. That's it, right? So that's the pre. That's the pre market setup. And then of course this is going to be on the one minute time frame as well. Now there's a couple things that I just want to clear up before we do anything else. The biggest question I get on YouTube for all my videos is what option contracts do you trade? I get that all the time. If you trade options, if you trade futures, right? Usually you can just trade the same week. But for options, what I'm looking for, right, is going to be the one OTM or the first one atm. Now what does this stand for? Right? This is out of the money contracts. This is at the money contracts. For me, I am typically buying the first at the money contract or the first one at out of the money. Okay, I'm not buying in the money. Why is that? Because if we're looking at this break and retest, you can see it's retesting over here. What is going to make me more money, right? It's not in the money. In the money is a super, super safe thing to play. But it's not going to make me the most money. What's going to make me the most money is going to be the out of the money contract looking for continuation. So I'm going to enter in on that one out of the money contract. Because if my targets, for example, on this stock rate, let's say it's 100 here, my target's 101, okay? This is the at the money contract that the money is 100, okay? If I'm targeting one on one for my first profit target, why would I not take one out of the money? Because the second that one out of the money comes into the money, I make more money. You know what I'm saying? So for anyone that's always asking, right, I'm trading one out of the money or one at the money. And I'm always trading right. Weekly contracts, right? Other than if I'm taking a swing, which we'll talk about in the examples, I'm taking the weekly contract. So that week, right? Let's say it's Monday. I'm trading Friday's contracts, right? Then let's say it's Friday. I'm still probably trading Friday's contracts. If the volatility is too much and I don't like it, right, Then I may trade the next Friday's Contracts, but I just wanted to make that very clear. But this is the pre market setup.

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Now let's get back to to the episode.

Cool. All right, I guess we're done with the setups.

Yeah, we can do the pros and cons.

Yep.

Again, when it comes to pros and cons, I say this on every single episode. Cons doesn't necessarily mean it's bad. It's more so just something to be aware of. As you probably know, and no doubt will be the same today is 99% of our episodes. Patience is always on the con side, which obviously isn't a bad thing. It's more something that you just have to be aware of when looking to execute and implement the playbooks that we've covered.

So for pros, right, There's a couple things here. One thing that I really like about this setup is that if you are a full time student, if you have a full time job, if you, you Know if you just can't sit at the market all day, right, this, you're done the day quick, right? So quick days, okay? Quick days. Even when we talk about the swing setup that I'm going to talk about today, that could technically still be a quick day because you don't have to, you know, keep analyzing every like one minute candle. Like you can be done the day pretty quickly. You just have to enter and manage risk. We'll talk about that in a second, right? So quick days is number one for me at least like that is key. Number two. Repeatable, right? So repeat, repeat, double, hopefully.

It looks right.

It looks about right. Repeatable, right? So this is a repeatable and consistent strategy. Every single time that I trade this, I know for a fact that I'm going to trade the same thing every day. I'm not changing my entry criteria. My entry criteria always remains the same. Number three for me at least, right. Though it's quick, though it's repeatable, the best thing about it is it's simple, right? So no matter what, no matter what level of trading you are, right? And I know some traders that are advanced. I may trade order flow and they're like, bro, like that. It's too, it's too easy, it's too simple, right? It works, right? At the end of the day it works. And that's what you want. You want something that works. You don't, you don't have to be the most advanced. At the end of the day when you're trading, what do you want to do? You want to make money. And if you want to make money, this is a very simple strategy that you can follow on a consistent basis to do that. Okay? So those are some pros that I believe are good. In terms of cons, there's none. So let's get to the. No, I'm just kidding.

No. So in terms of consciousness, right, There's a couple, right? So number one is, though it is extremely simple, though it is repeatable and though you'll have quick days because you're having quick days, you can't hesitate. Okay? So has hesitate.

No, it's not.

I didn't get to school.

I rely on, I rely on spellchair for my vocals.

I was like. But hesitate, right? So if you hesitate on an entry, for example, like if we're looking at the break and retest, you hesitate on an entry where your entry should have been here, right? Because we're trading momentum, we're trading before 11 o'. Clock. By the time you enter, you May enter high of day just because of how quick the stock moves, right? So hesitation is not key in this. Now, as a new trader, you may hesitate. I hesitated a lot. Especially as a new trader, if you go through drawdown periods, you will hesitate. Why? Because you kind of almost have PTSD from your previous losses, right? Similar to a soldier like you have ptsd. Because. And you may not think this, but because you've had so many losses previously, you're scared to enter into these next trades because if it loses, you may blow your account or whatever it may be. And the reason you think like that is because you don't have a consistent system. All you're doing is gambling. So hesitation, you need to get rid of that, right? The second con that I would say that this one does have is that when you're looking at trades, like, you have to not only be quick, like we talked about, but it needs to have the same repeatable setups, right? So for each pro, there's a con, right? So because it's repeatable, right? This is a con, technically, right? But every single day you're going to come in and you're going to do the same thing. What does that mean?

Boring, right? Extremely boring. And that's what trading should be. It should be consistent and it should be boring, right? I literally had a YouTube video titled My Boring Strategy, right? You know what I'm saying? Why? Because this is an extremely boring strategy. You're doing the same thing. It shouldn't be fun. You may make money and you may feel good about it, but it shouldn't be a fun thing for you because it's so repeatable. Every day you wake up, you do the same thing. You let the market develop and then you let the actual price action take it from there, right? When you take your entry, this doesn't mean if you lose this and it's an A plus setup, that doesn't mean that you may have necessarily done anything wrong. It's just the price action playing out and the probability is playing out, right? So boring, I would say. And then number three, right? For some traders, right? Because it's simple, they think they want a little bit more advanced. So I wouldn't say it's an advanced. I would say there's definitely confluences that you need to learn, though, how simple it is. It's still going to take you, you know, months to years to actually become profitable doing this and consistent doing this, right? So I would say that it's not an advanced strategy, but because it is extremely simple, right? It's easy.

To fall off, right? What do I mean by that? Right. Because it's so simple, right? And trust me, I've seen this happen multiple times where the strategy works so well. Like especially for the last couple of months right now at the date of this recording, right. This the setups that I've been telling you about, right. 80 to 85% win rate for myself, live trading every single day in front of thousands of people, literally. Right. And everyone's doing really well. Except this last week, right? This last week. It's slowly coming down. Why is that win rate coming down? Because the market's being a little bit more choppy now. When that's coming down, what's happening? Because the market's coming down, it's easy to fall off of using that one strategy because once again, we know it's boring. We know if you hesitate on the entry, you may miss them. And now you put in a choppy, choppy market on top of that. Super news driven, whatever it may be, Right. You're jumping from strategy to strategy. Right. So I would say that would be a con, right. Just trying to stick to one. And I wouldn't even say that's a con of the strategy, to be honest. I've just seen it happen. So that's why I wanted to put it here. Like, as a trader, if you're trading one strategy, right, you want to stick to that one. And that's why I'm going to write that one over here.

No, definitely no. I think it's a. It's a really good point. And one thing I will say in terms of you did mention, let's say if you're doing it as the scalping side and sort of the more intraday side, the quick days, though, pro, if you do have a job during that window, might be hard to execute. But equally, as you mentioned already, you can just step up time frames to then eliminate that as a. As a con or something to worry about. But yeah, I love that. Now we're going to go over actual trade examples, right, of the playbooks that you've gone over, one of which being that 100k trade.

Yep.

Now we're going to go through some.

Actual trade examples that emulate the same.

Trade playbooks that Raf went over here on the whiteboard, but on the actual charts. And these are setups that he's actually taken as well. So let's get straight into it.

Cool. So on the first example here, we're on Tesla. Every example today is going to be on Tesla. Just because it. Honestly, if I was to go back and look at how much money I made throughout my career, I would test 70 to 80% is on Tesla, to be honest. Incredible. So this is one of the stocks I like the most. So the first one we're going to use is the first candle rule, right? So when we talk about the first candle rule, right, you can see here, we're on the 15 minutes time frame. And what we have to do is just wait for the first 15 minute candle to develop, right? So let's open this up. Boom. Now, remember you talked about how can the candle form? What should you be looking for? This is a candle, right? Now this candle I wouldn't say is bearish. I wouldn't say it's the most bullish either. Right. More of a hammer stick type of candle. So what we're going to do is mark out the high up here, okay. And then we're going to mark out the low.

Okay. Just like that. Now what we're looking for here is simply going to be the break above the retest and continuation, right to either side, either the upside or to the downside. But we're not looking at it on the 15 minute, we're just marking out the 15 minute. Now we hop on over up here to the five minute time frame. Now you can see on the five minute, we see a little bit more data, right? So you can see we opened up here, move to the upside. Seller stepped in, right? So let me make this clear. Seller stepped in here. Then you can see how aggressive those sellers were to the downside, creating that 15 minute low. And then buyer stepped in again. And now we're in that range of the 15 minute. Now, in this 15 minute range, we do not want to trade anything, right? That's just not key for us. We don't want to trade anything there. So what we want to do now is wait for the break and the retest. Most specifically, right now we want to wait for step two, right? So step one is obviously entry waiting for the 15 minute to develop. Now that it's developed, we will go over to the five minute, which we are right now. And we're simply going to play out the actual price action. Now in this example here, what do we see? We broke above, right? So this is where people get confused. You broke above, right on the 5, but it didn't close. Notice how I always talk about candle closures. This one did not close close above showing what though it's a green candle we opened up here, buyers aggressively brought it up. But sellers were still able to close the five minute below. And this is why this is such a precise entry. This is why you can get really, really, you know, a high win rate with this strategy because you're waiting for that confirmation as well. Okay. So let's keep playing out this trade.

So in this case, even though it went above, it's not invalidated the setup. It doesn't need to. You don't need to change the high or low. You just need to wait for a close above or below.

Exactly. Just wait. Just wait for this. Let's keep playing this out. So right here we now get that break above. Okay. So key, we get the break above. This is the five minute break now. Yes. It didn't break this previous high. Doesn't matter. Right. Because now we understand that buyers brought this above. Sellers try to step in. Buyers are still aggressive. Right. So now we move over to the one minute time frame.

Now on the one minute time frame, what are we looking for Now? We're looking for the break and retest. If you want to get a little bit even more advanced with this one. Right. And once again, this is just adding confluences. You're really just looking for the retest into this level. Right. Because this is the, this is the down close candle. Right. Highest previous down close candle. Right. Other than obviously this one, this is the highest previous down close candle in this scenario. Right. And then you would want to retest back into this previous support turn or say resistance turn support. Okay, so play this out.

Right there. Right. What do we get? We break above, we come back for the retest. Strong lower wicks. Right, Strong lower wicks. Now this one, buyers and sellers, I would say are both neutral. But this one already showed that buyers are strong.

Yeah.

So for me, what am I looking for? I'm looking for an entry here. This is because we know that the stock is overall strong. We know that it tried to break above, wasn't able to. Now this time we broke above. And now we are retesting not only right the 15 minute open, but we're also retesting that one candle rule. So a lot of confirmation there. Price action is confirming as well. We enter into that buy position right here. Okay. Now when we're entering into a buy position on a stock or on a trade like this. Right. What are we looking for? Like I said, we need to have at least that to our multiple. Right. So if we're looking for that long position here, where would, where would you put your stop loss? Just curious, where would you, me personally.

I would probably look to put it below this low since large green candle, the one that closed above 100%.

Right. So right here, because this is where the structure break will occur, right? Because not even in the structure break necessarily because we're on the one minute, but this is where the loss of momentum will occur. This is something that I talk about a lot of within my channel. Like just the loss of momentum compared to the break of structure. Right. So like for example, technically on the five minute break of structure may occur over here, right. Or change of character, you know that.

That I spend on how you use.

It, you know, whatever you. But for me I call it breaking store. So it would occur right over here technically. Right. But loss of momentum, this is the previous, you know, higher low. Yeah, right. So that's where I would put it. And then we need at least a two hour multiple. Now in this example you can see high of day only gives us like less than like a 1R. So for me that's just not, you know, okay, I might still take some off a high of day, right. Just to lock in some profits. That may be a lower percentage for me. Right. But what I'm looking for is that two are right now in this example I would target three 60s. Now you're going to ask why would I target three 60s?

Two reasons.

Number one, that's where the two are multiple comes the most close to. But number two and the most important part with the 360, it's a whole psychological number. Now when a stock is moving in, you know, some traders over complicate this. When you first started trading or investing, right, and you bought Apple shares or Tesla shares, you didn't buy them because you wanted to, you know, or say you didn't buy them at a specific like price. Like you didn't buy them at 358, 25, right. You bought them at 355, 356 whole numbers. Right. That's what institutions are doing too, you know, and they may buy through obviously these key levels. Right. But those whole psychological numbers, there's usually a lot of volume sitting at the levels. And so that's what I'm going to target here. Okay, so take profit up here, right? Stop loss down here. Right. So you can see in this example we're risking $1,000 essentially for $2,350. That simple, right. We're already into that buy position. Now all we got to do is play it out. You can see already buyers aggressively stepping in there and boom, just Done like that, right? So you can see this day. Where do we exit off? We stopped. If you were to close that whole trade at that 360, right? You were done at 1016. Market opens at 10, 9, 30. You were done in less than an hour. You can go enjoy the rest of your day. That simple. Right. Now this trade, once again though, this is hindsight technically on replay, right? You can see right here the exact times that I actually did enter. Once again, this is done live every day, right? So you can see three 6750 calls. The price right here was about 357, right? So I was going like one out of the money on this one, right, sorry, 357, right. So I was going one out of the money on this 1 or 1 at the money at this time, right? 357 calls looking for continuation. You can see I said that 10:08am Right? Same stock that we just saw breakout retest, right? And then that continuation to the upside in this one, right? You can see Tesla high of day three 60s coming in. And then you can see this one actually resulted in about $11,350 on this Tesla trade. Three 5750 calls, right? And then I had a 10 trailer position, right? So though I was out, right, majority of my position at 360, I had 10 trailers left for the rest of the day, right? And if we actually ended up playing this trade out, right, you can see the rest of the day actually ended up coming back to the upside here, right? And I think I stopped out of this trade total right trail. You stop, it was like right here, right? So I was able to capture a essentially right, another.053 or 1.93 on the actual stock just by holding those, right? And the stop loss like you said, right, Just trailers. And you're basically just looking for that break again of structure on the one minute or the five minute. But that was basically this full trade. This is the first candle rule, super simple to follow. You're basically just looking for strong price action. And then you can have other confirmations in it as well.

Definitely. But from execution in terms of executing the trade to essentially your initial target, you're talking over $11,000 in the space of roughly 10 minutes around there. But as you said, though rightly so, from where your thesis began, about 45 minutes, which is still incredible, right? But again, to go back to your original point earlier beginners out there, you start lower, right? That's the result of years of building those reps, building that discretion eventually as well through those reps. But regardless though, the reason I highlight that is to show you simple trading and the results it can bring when you put in the work.

100. 100. So this one, this was the first candle rule. Super simple. For this one I would say this trade because I technically entered in around that 10-10-9108 candle around here. Right. And so technically this trade for the full trade took about an hour. Right. But I was off. I was actually off the desk, to be honest. I was off the desk at like 10:20. Right. So for me, technically it took 10 minutes. Minutes. Like you said, it took 10 minutes, $10,000, $11,000 and I called the day. Right. So technically it was $1,000aminute. Right. But, but you don't look at trading that way. It's based off one thing was, and I always tell everyone this, that now that trading you're, you're making money based off of decisions, you're not trading your time for money.

Yeah.

Right. So the reason I say $1,000aminute is kind of a joke because it's like such a high amount to be doing. Right. But that came after seven years. So if you average it out, you know what I'm saying? So but this is important to kind of mention as well, right. That this was a one hour trade, but technically the majority of the money was made within 10 minutes.

Exactly. Yeah. To your point, it's a great sound bite, but the reality is, as you say, once you get to that level, it's not even about the time and it's just a, it's a process thing.

Right.

The process is paying you that much. And it is still remarkable because at the end of the day, the reason we get into trading or majority of people, if not everyone gets into trading to be able to make money like that. Because if you so decided that I'm done for the month, that is, you know, that is more than the average salary for example. And that is, you know, enough to live off if. But then it really, really comes back to the fact that the real traders and the ones who want to reach the high levels, that's not their mindset anyway. They're not even looking at the money. They're very focused on their performance. Yeah. As a trader and how well their decision making was. As you, as you said, 100.

Nowadays, like, to be honest, my main focus is just like trying to get precise, like really, really good entries. Like I talked about earlier, you don't, you don't need precise entries in the beginning, just enter based off of what you're looking at. But like now, I think after, you know, years and years of trading, like my main goal is like we've already done the money run, we've already done everything else. Like now I really just want to get those really precise entries to really lock in those, you know, those bigger profits and even those exits. Right? So this was the first trade for the first candle rule, right? Now what we'll do is we'll go to the pre market session or the pre market strategy and then we'll finish off with the $100,000 Tesla trade, which was the one candle rule. So here we are on the second example. On this example we're going to be looking at the pre market session. Now you can see the pre market session like I talked about, right, opens up at 4am Eastern and it's done at about 9:29am Eastern. What we're going to do is draw out once again that resistance and support. Right? So the resistance here, right, Is.

The resistance here, okay, is going to be this green line, okay? And that's going to be the pre market high. For our support. It is going to be the pre market low. Now right into open. We don't have to change time frames for this one. This one we're on the one minute. We can stay on the one minute. If you want to trade the five minute, you can do that as well. For us we're going to use a one minute because that's what I personally use myself. Okay. Now when we're looking at this, what do we want? Once again, very simple break above, retest continuation. Now for this one, it's important to mention for this you are specifically looking for strong price action right off the bat. Okay. So what we're looking for is basically the candlestick to develop and show us right in within like the first five minutes that the market does want to move and push up, right? The reason this is is because you can see this market is gapping up. Okay? So I said that we were going to talk about that in a second here. This is the example, right? So this market gapped up the day on the Friday previously, right. This is the Tuesday. So this was a long weekend, right? And when we gapped up over that Friday, this is the level that's going to be the most high probability. Now another setup that some people trade is going to be the previous day high, previous day low, right? The previous day high would be around like this 343 level. Great setup to trade as well. Right. But for these days that you do gap up, what are going to be the levels that every single trader is looking at? It's going to be the pre market high, pre market low. Right? Because that's the levels that you have before the market even opens. Okay. So now what we're going to do is we're going to open up the trade once again and we're going to see exactly what happens here.

Boom. Right? Right off the bat, what do you see? Buyers aggressively step in. Right. Just like I mentioned, buyers need to show you that they're stepping in aggressively and that's how you trade the pre market retest. That's going to be the highest probability way to trade the pre market retest as well. Okay. So now what we're looking for, like we know, is the retest back into the level. Now, you know, a lot of traders, they'll see this and they'll look at, you know, for example, this first like 9:31 candle, try to get in on that good candle. Right. If, if the higher time frame is very, very bullish, you could even potentially look to get in on that candle looking for that quick move up. Right. But what I like is displacement, right? Now what's displacement? Displacement is the move after resistance. So this is resistance. Displacement would occur on this move. Right? Let me actually do this right this to. This is displacement. Okay. So when this is displacement, we need to make sure buyers are stepping up aggressively, breaking above. Right. This once again shows us that interaction between buyers and sellers. And then we're looking for the retest back into the level. If you don't get displacement and you get an instant retest, like this candle right here, it's a decent retest, right. If the higher time frame is aggressive enough for you to take that. But if it's not, then you need to wait for displacement. Especially in this example right here. Even though we saw very, very strong price action right off the bat, would.

You say a lot of the time if you don't wait for that displacement and you take the first one, as mentioned here, the risk reward, unless you're, you know, again, going back to our previous example, kind of targeting the 1 to 2, the risk rewarded to high of day at that point would always be really, really low 100.

So. So there are some trades that I may take like that, right. That are like very, very quickly, but the risk reward only stays high. And like I said, if the higher time frames there. So if you're looking at higher time frame liquidity levels, right, which we'll talk about in the next example. Actually that's going to be the swing trade.

Yeah.

Right. So we'll talk about that in a second. But when you're looking at higher time frame liquidity levels and you're looking at that specifically, that's when you're going to get those, you know, those bigger trades. But without that, right. Then displacement is what you need. Okay. So in this example you can see the breakout. You can see we're coming back for the retest. You can also technically see, right? And notice how in every example so far you've seen the same thing, the one candle rule, right. Someone's like, how, where do you see the one candle rule? This down post candle. Right? So yes, it is retesting back into the pre market high as well. But we actually have the one candle rule here as well. Right.

So in this example, what am I looking to do? Right. Break above retest, strong price action in the one candle rule with the pre market session. So many different confluences making this a super high probability setup for me. Right. So I'm looking to enter into the trade here. Okay. Our stop loss does have to be a break below this key level. Right. Our stop loss doesn't have to be low of day. Right. A lot of people come in and they think their stop loss has to be. So your stop loss shouldn't be too tight, it also shouldn't be too big. It's got to be that perfect balance. And you'll learn that over time. In my opinion on this trade, it just needs to be a little bit below this previous 349 level. Right. You could even honestly just have it right at 349 itself. Right. But for me, right, the 349 is fine. Or you can just have it literally at a break of the structure of 3:4980. Okay. And then for our profit target, right. High of day on this example actually does give us about a three hour multiple. Meaning for every $100 of risk, we're going to make $300 of profit. Right? So that's something that you can target. I do know when we'll talk about how I took this trade after this was a $25,000 trade for me and this one ran pretty aggressively afterwards. Right? But for this example, to simplify everything, to make sure you guys just understand how to trade it, this is what we're looking for, very simple. Okay. So we will look to buy into the position here. Stop loss, just like I said right over here. And profit Target right up at highs right here. Okay, so let's enter into this trade and let's see exactly what happens.

Right. How fast was that? Okay, right into your profit target. You enter in on this candle, one, two, two minutes, you're done, you're done. The day with this is what, 9, 41, 10 minutes. So this strategy for those people that have jobs, whatever it may be, jobs, school, other work commitments, this is the best if the market is trending and aggressive. This is only the best when the market is trending and aggressive. When the market is not aggressive, you know, buy side or sell side, then you want we may look at those other setups like I talked about. And that's why I have that playbook for me that I can trade different market cycles, right? But this one you can see very, very aggressive. This one pushed up really nicely and we were done the day within two minutes and we can call it a day. Now this one actually did end up moving to the upside really, really nicely. So you can see May 27, right? This is the $25,000 trade on Tesla. If I actually open this up really quickly. What's up guys? Welcome back. Sorry, I just wanted to show you guys. Right, this one right where we entered. Okay. Right over here, right. That one candle rule slash the pre market session. You can see I had it on that day as well. Right, we enter in here and then you can see the continuation this thing had afterwards. And when you were talking about that liquidity and how do you find it, you can see this 36 that we had this 35479 key level. Right, we had this 3.5479key level from the higher time frame, which we'll talk about in the next example. But this is basically how I took this trade. And this was a solid trade done pretty quickly.

Definitely.

Yeah.

Well, $10,000 in two minutes. Again though, I think what you're paid for, as you mentioned earlier, is your decision making and the speed of that and the confidence of that. Because in this case, as you mentioned earlier as a con hesitation, this is a prime example of if you hesitate even for a moment, even though it's the one minute chart. Yes. You may have about two, two minutes there to really get your entry in. Regardless, I imagine in real time you've seen this explosion at market open to the upside, you know, then you see price kind of slow back, come back and pull back to that level. You know, that quite bearish candle, even if it's on the one minute, quite bearish Candle before the entry is still meant to take place. I can imagine especially a newer trader seeing that and start hesitating, thinking, oh, ones if we're collapsing, ones if this is a fake out, etc. Etc. So you're paid, really, it sounds cool as a sound bite, $10,000, two minutes. But really you're paid for your execution. You're paid for. With all the time and effort you put in and probably the times where you went through that doubt but still pushed through. Yeah, yeah, you can see how a simple. Yes, it's simple, right? Going back to that point, it's simple and even the execution is simple. But it's being able to fight those inner demons, I bet, in terms of like, oh, maybe let me wait for an extra confirmation, let me just wait a moment. Or maybe, you know, maybe not. Maybe I should just hold back. But in reality, if you do as you see, you're going to miss the trade. By the time you've got over that, the trades already happened. And then what ends up happening, no doubt for those people who end up in that situation is they then start chasing, right? And then that's how you end up back, back to where you were and having losses. And back to your point earlier, ptsd, you know, that's where that builds up from. Well, I think that's going back to your point in terms of control the contract size to begin with whilst you learn. Well, probably I imagine help to, you know, hopefully help to remove those emotions and the hesitation of it as you build your confidence up.

101 thing I wanted to mention on that point was, so I'll say you hesitated on this entry. So one thing, before I even talk about that, like you mentioned earlier in the day, when you see this, you already know this is the soccer focusing on, right? That's the key, right? Boiling down the stocks you're focusing on. So coming into the day, I'm looking at like three to four stocks, right? But then I'll boil down to like the one or two right at the beginning of the morning that's showing the most strength or weakness, right? And then based off of that, I'm looking for an entry. So yes, the entry was within one or two minutes here, right? For sure. But I had so much time to plan the trade. Plan the trade, trade the plan. That's it, right? So when you plan the trade, you see it coming up, you see the displacement, you know, it needs to retest this level, right? So there's nothing to fear. You know, it needs to pull back it can pull back however it likes to. Obviously we need to look at price action in there. And then when it comes back, low risk entry, you see the entry enter. That's it. Right? Because the low, the closer you're entering into that resistance or support, the better your risk reward will be, Right. The more money you'll make. Yeah, right. But you just got to get rid of that fear. Now the point that I was going to mention was, let's say you hesitated on this entry. If you hesitated and you entered in at the high of this candle close, or maybe even the open of this candle, right. We're up from our original entry. Right. Even if it's coming down. But you enter here, especially on option contracts, because the way option contracts work, right, the delta starts moving up to the upside, especially as, as the stock moves aggressively to the upside, you want to start selling, right? You sell into strength on options, right? With futures, it's fixed with options. Because you have Greeks, you want to sell into strength. So if you're buying into strength on options, when that comes back down, you're option contract is cooked, you know, like it's, it's done. So that's why having this retest, this is the key, the breakout with options works. I've seen some people trade. It doesn't have the highest win rate in my opinion. The retest has a high win rate. It has higher probability chance of it winning. Sorry, high win rate. And it has a high risk to reward as well. Yeah, right. And as long as it has those two factors, for me that's the highest setup or the best thing for me to trade consistently day over, day over. Yeah, right. So this is going to be that trade once again. If I actually end up playing this one out for a couple of minutes here, you can see it holds that one candle rule and then just aggressively pushes to the upside. Right? So that's this trade. This was the, the pre market session. We talked about the first candle rule as well. Now we can finally get into the trade that you've most likely been waiting for, which is that Tesla swing position that I had. This was a hundred thousand dollar plus trade. And this was also using the one candle rule and the higher time. Right, so let's get into that. So here is the final trade that we're going to be talking about today. This is the one candle rule. This was a Tesla trade. I took a lot of you guys that may have been watching this, may have seen this trade that I took, right? This was $100,000 trade. But how did I set this up to actually make that money? Right? And what did I do that helped me stay in the trade? That's the key as well because you'll see in the price action here, most people would have sold either too quickly or too late. What did I see in Tesla? There's a couple confluences I want to talk about before the one candle rule. Number one, earnings. Okay, so Tesla had earnings though they did not beat their earnings, right? They actually did not beat their earnings. We saw right after earnings an aggressive push up. Now this is where experience comes in, right? This Tesla trademark after, or actually a little bit before earnings. I took this before Trump came into office, right. And that was last year. It was my biggest trade. It was like $140,000 trade last year, right. That I took. And funny enough, Umar took the same trade. He made $10 million. We won't talk about that. Right. But so, so I took that trade, right, Last year knowing, right. That Trump was going to benefit Tesla at that point. Point, right. That was the sentiment. Plus there was some setups with the, for that one. It was actually the, the one candle rule as well, plus bull flag. But this one exact same setup occurring. So what was the setup? Earnings. We see strong price action and then that consolidation. Like I talked about earlier, the stock can only move up, down or sideways. When you see a stock move up and sideways, it means buyers don't want it to come back and dip the load. So when this started developing, I'm like, what are they trying to hold? Why are buyers trying to aggressively push it to the upside? You have to think about context clues, right? Context clues are really important for me. What I realized was, okay, Tesla, very, very big downtrend for the recent couple, you know, let's say a couple months. Right. But then now we kind of based in this range, right? So we're kind of basing in range now. We don't want to be in range specifically. Right. But in the last, let's say, you know, two weeks, Tesla actually ended up coming back to the upside aggressively back into this resistance. So what does that tell me? If that resistance breaks now, we're going to see a lot of momentum. Remember, we're on the four hour time frame this time. We're not on the one minute, we're on the four hour time frame. Okay, so how did I enter into this trade? Well, we need to look for the lowest risk entries even when we're swing trading. Right. For me, we look for the highest down close candle, the previous highest down Close candle. This occurs at this pivot structure, right? So you see this pivot structure and this down close candle right here, you literally just draw this out. And you can see this is exactly where the stock is basing, right? The stock is basing at this key level. So when we see this key level in the stock basing, we also see that this is kind of putting in a flag pattern right? Now this isn't something that I may necessarily look at and be like, this is, this is my entry signal. But there's confluences, right? We see the resistance kind of forming, we see the support, we see the one candle rule as well. And then we also see that Tesla had earnings and we had a really aggressive push up. So there was fundamental news about this that helped it push up and then there was technicals that were backing it. Okay. So this gave me a little bit more confluence to enter my trade. And for this one I just want to show you guys, right? We can see we're on May 2nd here, okay, May 2nd. And you can see May 2nd, right at 12 o' clock I said Tesla swing thesis earnings good, right? The earnings weren't good, but the reaction to earnings was good. Higher timeframe flag pattern after uptrend with downtrend flat 4 hour break at same level level, lower risk trade. But also if this works, it can run, right? We'll most likely take one to two weeks out contracts waiting for more price action. But this looks good. We'll let you know exact cons when I enter look at what was going on, right? The exact setup that I'm showing you, right? This is that one candle. I just decided to draw it out with the red lines, right? But this is the exact setup that I'm showing you here. So what did I do? I entered into this trade, right? And where was I looking to target and what was my stop loss for this? It's the exact same on the four hour and the one hour that you would do on the one minute. Okay, so what I'm looking for here is that entry, my stop loss is a break below the one candle rule. Okay? And then my profit target here, right, can be these highs up here. And plus for me at least my main targets.

Was this level right here, right? This kind of 326 key level 326. Now this is a 2.07 risk to reward trade. And some people may be like, wait, you made $100,000 but you only did two R, right? Very, very key to remember. Yes, I didn't. Yes, technically this trade is to our. But you'll see why it's not 2R when we actually get into how I entered and the specifics of it, right? So higher time frame was technically 2R trade, what I'm risking. But when it actually ended up coming down, actually ended up entering in a bigger position. So this is a starter position on the swing, but you'll see how I entered in that, right? So I just want to play this trade out just so you kind of see how it works out, right? So you can see right here, right? This was May 5th when it dipped, right? So May 5th slash, May 6th is when it dipped, right? We can see this once again, I just said May 16 to 95 calls, right? And then I said taking Tesla 295 calls. You can see this May 2, right? You can see the exact time frame. This is no editing or anything. 12:14 Targets will be pivot highs, right? And I said the exact contracts that I'm swinging now. You can see the trade started working out, whatever it may be. I want to show you guys here. May 5th, right? At 236, right? This is where I entered in my second position. Now I trade from 9:30 to 11:00am but this is a swing position, so I'm just entering in when the trade actually validates its level. Right? Added my full position on Tesla, looking good for a move to the upside. Stop is is clear at the 270 level. Once again, that one candle rule, right, being shown very, very clearly here. And you can see the targets, 3, 2, 7 50s and the key targets that you scale out of if you want as well. You can also see how the risk to reward now changes, right? Because now I'm in my full position. Earlier I was in the starter position. This is my full position. Okay? So starter position up here, right near this area. Now full position in here, right? So let's just average this out like down here, about a 3.5 to about 4 hour trade. Okay? Now you start playing this trade out, right? Gaps up right within the following like three, four days, right? Ends up gapping up, moving up into our profit target. This trade took about maybe a week and a half to develop fully, right? But this was a solid trade to the upside. Now if we look over here, right, you can see green line equals take profit. You can see exactly where the take profit, where you can see exactly where the stop is. No editing or anything on this as well, right? This was Tesla. So this was the day Tesla opened up. Tesla first PT hit, right? I was guiding Them through. I was guiding through this trade the whole time. Right. But you can see $50,000 swing. And this was just half the position. Right. But this is where I started taking some off. Right. $50,000 on the. What day was this? On the. On the 9th. Right. So $50,000. And then as it kind of continued to the upside, 64,000. And then it ended up being 67 and then it ended up being 75 and 80 and 100. Right. But those just. It took a couple more days to finally get up to those kind of key levels. Yeah, you can see here. Right. So this is the following day. Right. So $16,000. So 80,000 plus 16,000 ended up being over $100,000. And now you can see just. I had a trailer position as well. So that was basically that full Tesla swing trade. Same strategy, right? Super, super simple strategy. Just understanding where buyers and sellers are interacting is the main objective of this. But once you understand that, you can trade basically any time frame, any market, any instrument. Right. And it's a super simplified way to do it. As long as you have the discipline and patience to actually execute your setups and don't hesitate when they do come.

Yeah, definitely. I love that. And in terms of the. The levels that you're choosing out for tps and even in this case, the. The entry or the area to look for. So it's based off where price has interacted before and shown movements before. Four is where you're going to highlight to use for targets or entry areas. Correct.

100%. And for this one, you can see like this was mainly done on the higher time frame. Yeah, Right. So four hour. But like, like I said, this is good for once again, those people that have jobs or whatever, they don't want to, you know, look and sit at the markets too long, they can do this. They want to, you know, maybe just trade the first open, like the opening. They can do that as well with other setups as well. Or even this setup they can do it with right. Until 11am so there's multiple ways to play this. I just think that it's a really, really. It's a proven system, first of all, but I think it's a very simple system. As long as you can execute it.

Yeah, right.

As long as you follow the one.

Seven.

That's it. That's basically the key.

Raf, I appreciate it. I know there's a ton of value for everyone at home as well. Drop a comment of your biggest takeaway from this episode, but any questions as well that you have or drop them in the comments below myself. RAF will be taking a look at that, but links for RAF will be in the description below, so make sure you check them out. There are other episodes on screen right now, but make sure you hit like make sure you hit subscribe. We have more playbooks coming to you. And until next time everyone, it's been Char for next. Take care.