How I trade US30!
TLDRThe speaker shares a trading strategy focused on the US30, emphasizing the importance of the U.S. session and identifying key bank zones. The strategy involves entering trades from 2:30 PM and utilizing support and resistance levels to predict market movements, with examples provided to demonstrate the precision of this approach. The video also addresses adjustments for high-impact news events and the transition from bullish to bearish market structure.
Takeaways
- 📈 The US30 trading strategy is based on identifying key support and resistance zones during the US trading session, which runs from 1 PM to 10 PM British time, or 8 AM to 5 PM Eastern Standard Time.
- 🕒 The New York Stock Exchange (NYSE) open at 2:30 PM is crucial for US30 trading, marking the starting point for considering entries.
- 📊 Traders should focus on zones made during the US session, particularly from 1 PM to 10 PM, to determine potential entry points for trades.
- 🔍 Before entering a trade, it's important to identify previous bank zones around the current price level to anticipate market behavior.
- 📉 The strategy involves looking for a 'buy off' of the bank zone after 2:30 PM, setting targets based on previous bank zones.
- 🚀 Entry and exit points are determined by watching for rejections of the bank zones on lower time frames, such as the five-minute chart.
- 📌 Stop-losses should be placed below the bank zone to manage risk, with targets set at the next bank zone for potential profit.
- 📈📉 The strategy can be applied to both uptrends and downtrends, adjusting the bias based on market structure changes.
- 📊 High impact news events, such as CPI data releases, can significantly affect market movement and require a different approach within the trading strategy.
- 📉 In a downtrend, traders should look for selling opportunities, focusing on bank zone rejections for potential short entries.
- 📈📊 Understanding and utilizing bank zones can lead to capturing significant market moves, whether it's catching multiple bottoms in an uptrend or identifying a reversal in a downtrend.
Q & A
What is the significance of the U.S. session timing in trading the US30?
-The U.S. session is significant because it operates from 1 PM to 10 PM British time, which is 8 AM to 5 PM Eastern Standard Time. This session is important for the US30 as the NYS (New York Session) opens at 2:30 PM, an hour and a half after the U.S. market opens. This timing is crucial for identifying key zones for potential trades in the US30.
How does the speaker determine the bank zones for trading?
-The speaker determines bank zones by examining price levels where significant buying or selling interest is observed. These zones are identified by looking at previous price action around these levels during the U.S. session. The zones are used to predict future price movements and to identify entry and exit points for trades.
What is the strategy for entering a trade during the U.S. session?
-The strategy involves waiting for the price to drop into a bank zone during the U.S. session. Once the price reaches the zone, the trader looks for a rejection of the zone, which is indicated by a candlestick pattern with a long wick and a weak body. This rejection signals a potential entry point for a trade.
How does the speaker set a stop loss for a trade?
-The speaker sets a stop loss just below the bank zone, immediately after observing a bullish candlestick and rejection of the zone. This helps to minimize potential losses while allowing the trade to remain in a favorable position to reach the target profit level.
What are the target levels for a trade based on the bank zones?
-The target levels for a trade are determined by looking at previous bank zones. The speaker identifies zones from the left side of the chart and uses them as potential targets. The first target is usually a zone from the previous U.S. session, and if the trade is successful, the next target could be a higher zone from an earlier session.
How does the speaker handle news events like the CPI data release?
-The speaker adjusts the strategy for high-impact news events like the CPI data release. Instead of focusing on the trend, the speaker emphasizes the importance of understanding how banks move the markets during these events. The strategy involves looking for rejections and breaks in the bank zones, which can lead to significant price movements.
What happens when the market structure changes?
-When the market structure changes, the speaker switches from looking for buying opportunities to selling opportunities. This change is indicated by a break in the low point of a previous four-hour session, which signals a shift from a bullish to a bearish market structure.
Why is it important to consider bank holidays when trading the US30?
-Bank holidays are important to consider because they can affect market liquidity and volatility. During bank holidays, there is often little to no movement in the markets, making them less tradable. However, the zones from these sessions are still used for future trading analysis, as they represent potential areas of interest for the market.
How does the speaker use the five-minute chart to identify trade entries?
-The speaker uses the five-minute chart to identify trade entries by looking for price action within the bank zones. By observing how the price reacts to these zones, the speaker can determine whether to enter a trade. For example, a rejection of the zone with a candlestick pattern indicating a long wick and weak body can signal an entry point.
What is the significance of the U.S. high and low points in the speaker's strategy?
-The U.S. high and low points are significant in the speaker's strategy because they represent key levels of resistance and support. These levels are used as targets for trades and can also serve as potential entry points when the price approaches or tests these levels.
How does the speaker manage risk in their trading strategy?
-The speaker manages risk by using stop losses placed just below the bank zones and by carefully selecting entry and exit points based on the rejection of these zones. Additionally, the speaker considers market structure and adjusts the strategy for high-impact news events to further manage risk.
Outlines
📈 Trading Strategy and Bank Zones
The paragraph discusses a trading strategy focused on the US30 index, emphasizing the importance of the U.S. session, which runs from 1 pm to 10 pm British time. The New York session opening at 2:30 pm is crucial for the index. The speaker explains how to identify and use bank zones to predict market movements, focusing on lower time frames to understand how banks use levels to influence the markets. The strategy involves identifying previous bank zones and looking for buy entries after 2:30 pm. The speaker provides a detailed example of how the market reacted to a specific bank zone, demonstrating the effectiveness of the strategy with a high reward-to-risk ratio.
📉 Market Entry and Zone Rejections
This paragraph continues the discussion on trading strategy, focusing on buying drop down entries and breaking free test buys. The speaker uses a five-minute chart to illustrate how the market drops into a bank zone, where traders wait for rejection signals to enter the market. The example shows a candlestick pattern confirming a rejection of the bank zone, leading to a profitable trade. The speaker also discusses how to adjust stop losses and target gains, emphasizing the simplicity and effectiveness of using bank zones for trading decisions.
🔄 Market Structure Change and Trading Adjustments
The speaker describes a shift in the market structure, transitioning from a bullish trend to a bearish one after a significant price break. The paragraph explains how traders must adjust their strategy when the market breaks a critical low point, switching from looking for buying opportunities to selling opportunities. The speaker provides an example of a strong rejection of a bank zone on a five-minute chart, indicating a potential selling entry. The example illustrates the importance of adapting to market changes and the potential for profit in both uptrends and downtrends.
Mindmap
Keywords
💡US30
💡trading strategy
💡U.S. session
💡bank zones
💡rejection
💡risk-to-reward ratio
💡break and retest
💡CPI data
💡uptrend
💡bearish
Highlights
The speaker applies their trading strategy to the US30 index.
The U.S. session for trading is crucial, running from 1 PM to 10 PM British time.
The New York Stock Exchange (NYSE) open is pivotal, occurring at 2:30 PM.
Bank zones, made during the U.S. session, are key areas for trading opportunities.
US30 differs from other pairs due to its unique trading zone dynamics.
The speaker uses lower time frames to identify how banks use levels to influence market movements.
Before 2:30 PM, the speaker's chart is clean, focusing on potential market movements.
The speaker identifies a previous bank zone around the 3340 mark based on the U.S. session.
The strategy involves looking for a buy off the bank zone once the market opens at 2:30 PM.
The speaker provides a detailed example of a trade, including entry and target points.
The importance of the U.S. high bank zone is emphasized for the next trading day.
The speaker demonstrates how to handle high impact news events, like the CPI data release.
A significant move in the market can be captured using the speaker's strategy during news events.
The speaker explains the concept of 'breaking free test buys' and how to identify them.
The market structure can change, transitioning from a bullish to a bearish outlook.
The speaker illustrates how to switch from looking for buying opportunities to selling based on market conditions.
Bank holiday sessions are not tradable due to lack of movement, but zones are still drawn for analysis.
The speaker emphasizes the ability to catch major market movements by understanding how banks influence the markets.
A detailed example is provided of catching the exact top of a market reversal and riding the trend downwards.