Trading Course Day 10: How to Mark Up
Summary
This video explains a straightforward method for marking up trading charts to identify swing highs and lows. The presenter emphasizes simplicity, advocating for the use of only one to three recent sessions (like London and New York) to mark these key levels. The core strategy involves identifying areas where price reacted strongly, establishing support or resistance, and then waiting for price to break out of a 'no trade zone' with confirmation before entering a trade. The goal is to build a strong trading community and teach effective, clean charting techniques.
Key Insights
Focus only on previous swing highs and swing lows for markup.
The core principle is to only mark the previous swing highs and swing lows to keep the chart clean and actionable. This is presented as the essential information needed.
Limit analysis to one to three recent trading sessions.
It's recommended to focus on the price action within the last one to three trading sessions (e.g., London and New York sessions) to identify relevant swing highs and lows. This timeframe provides sufficient context without overwhelming the trader.
The 'No Trade Zone' is defined by a swing high and swing low with no clear directional indication.
A 'No Trade Zone' is a critical concept where price has established a high and a low, but there's no clear indication of its next move. Trading within this zone is discouraged due to uncertainty.
Do not trade the indication; wait for confirmation and volume.
The presenter strongly advises against trading the 'indication' (breakout) itself, as doing so can lead to losses. It's merely evidence that price might continue in that direction. Waiting for further confirmation, like candle closes and volume, is essential.
Sections
Introduction and Community Appreciation
The presenter expresses gratitude for community support and efforts to combat fake traders.
The presenter thanks the viewers for their support, acknowledging their role in growing the ICC movement, spreading knowledge, and filtering out fraudulent course sellers and fake traders. They appreciate the community's positive impact.
Announcement of a free European tour for in-person events and Q&A sessions.
An upcoming tour in Europe is announced, where the presenter will host free in-person events in major cities. Viewers are encouraged to comment with their locations if they live in Europe, as the presenter wants to utilize their time to connect with and build the community.
The presenter's motivation is to help others succeed in trading.
The presenter reiterates their appreciation for the support received and emphasizes their passion for seeing people genuinely succeed in trading, seeing it as a life-changing skill they want to share.
Request for likes, subscribes, and shares to increase video visibility.
The presenter asks viewers to like, subscribe, and share the video to help it reach a wider audience, explaining that this engagement is crucial for the video's reach.
Technical difficulties with video recording are mentioned.
The presenter informs the audience that the video was recorded multiple times due to issues with OBS software, resulting in a slightly laggy or glitchy final upload, but assures it's still understandable.
Chart Markup Strategy: Simplicity and Key Levels
Clear charts by removing unnecessary levels for a fresh start.
The presenter advises viewers to clear their trading charts, stating that complexity is unnecessary. Many traders overcomplicate their charts by marking too many levels across different timeframes, creating a 'mess'.
Focus only on previous swing highs and swing lows for markup.
The core principle is to only mark the previous swing highs and swing lows to keep the chart clean and actionable. This is presented as the essential information needed.
Limit analysis to one to three recent trading sessions.
It's recommended to focus on the price action within the last one to three trading sessions (e.g., London and New York sessions) to identify relevant swing highs and lows. This timeframe provides sufficient context without overwhelming the trader.
Identify swing highs/lows based on price reaction, not just visual peaks.
A swing high is identified not just by a peak, but by a level where price reacted, showing sellers stepping in. This can include multiple reactions or a rejection after a new high is formed. Similarly, swing lows show where buyers stepped in.
Market structure remains consistent across all timeframes.
The presenter emphasizes that market structure (higher highs, higher lows, etc.) and the fundamental principles of price action do not change when moving between different timeframes (e.g., 1-hour to 15-minute). The same rules apply.
Utilize the indicator to help identify potential swing points.
While the presenter prefers manual identification, they suggest turning on the swing high/low indicator as a tool. It can help validate your own markings or provide potential levels to consider, though it's not always perfectly accurate.
The 'No Trade Zone' is defined by a swing high and swing low with no clear directional indication.
A 'No Trade Zone' is a critical concept where price has established a high and a low, but there's no clear indication of its next move. Trading within this zone is discouraged due to uncertainty.
An 'Indication' is defined as price breaking a swing high or swing low.
An indication signifies a potential shift or continuation in momentum. It occurs when price breaks through a previously established swing high or swing low. Crucially, indications themselves are not trades; they are signals of potential.
Do not trade the indication; wait for confirmation and volume.
The presenter strongly advises against trading the 'indication' (breakout) itself, as doing so can lead to losses. It's merely evidence that price might continue in that direction. Waiting for further confirmation, like candle closes and volume, is essential.
Trading Execution and Confirmation
Wait for price to move out of the No Trade Zone with confirmation.
Once price breaks out of the No Trade Zone ('indication'), traders should wait for confirmation, such as a candle closing above the level and subsequent bullish momentum, instead of trading the breakout immediately.
New York session provided confirmation to trade bullishly above resistance.
In the example provided, after price broke a swing high (indication), the New York session confirmed the bullish move by closing above the level, leading to a subsequent bullish candle. This provided the trading opportunity.
Price failing to go lower established a support level for a bullish trade.
The presenter highlights that the level where price stopped falling and turned up became a support level. Trading above this confirmed support, especially after breaking a swing high, validates a bullish trade.
The trade involved entering above a confirmed support level after a swing high break.
The presenter details a specific trade taken above a key support level. They placed a stop loss below this level and targeted higher prices, managing the trade by scaling out and potentially scaling in.
Risk-to-reward was considered, but the trend confirmation justified the trade.
While the initial risk-to-reward ratio might not have been ideal, the strong confirmation from the 1-hour trend and the established support level gave the presenter confidence to take the trade.
Conclusion and Final Advice
The provided markup strategy aims to simplify trading and improve chart clarity.
The presenter hopes the video clarifies charting methods and encourages viewers to adopt a cleaner, more focused approach, contrasting it with cluttered charts often seen posted by others.
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