[music] all right what is going on people hope you’re doing well welcome back to the channel.
Now in today’s video, i’m gonna keep it uh, nice and simple. For you guys! This was a requested video from quite a lot of you! Many of you have been asking if i can showcase the strategy working on indexes now. Last week i actually took a trade on s, p, 500 or you can call it u. S 500, whatever you like to call it! I took this cell right here! As you can see, we had that price cycle play out again?
We had that consolidation expansion which broke that structure and that expansion created that imbalance and remember the retracement to fill in any uh, inefficient price action and then the reversal to continue to move over to the downside. So this was the before this was the after? We secured a nice, ah 18 rr. I personally pulled out the trade when it touched: 15 r, securing a nice 7. 5 percent on this position and what else i’ll be doing is going through some back testing that i was doing on ns100, showing you guys again that the strategy does work on every single asset class? So, let’s get straight to the video, what i’ll be doing uh what i’ll be going through! first is the trade that i took on the us 500? So we can get that out of the way. Is nice and quick and easy, so the trade was right here, all right, let’s actually replay price back. Sorry, let’s replay price back to this point right here, go through why i took this position: okay, let’s head up to the 30, because we don’t really need the high timeframe right now, i’m gonna keep it nice and simple for you guys. So, as you can see here, right price is sort of beginning to distribute over to the downside. Okay, once i noticed that price was starting to weaken from its bullish momentum, i was waiting for that breaker shot to the downside to confirm the cells that i want to get in on. Okay, not only was price beginning to distribute over to the downside! There was also some further imbalance down here that needed to be filled in all right.
So once i wait for that breaker structure- and i got that at this point over here right, i started to mark out the price cycle and the zone before that breaker structure! Okay.
Now, if we zoom into this area right over here now, what can we see the consolidation and then the expansion which broke out of that phase? okay, and that expansion created all of this inefficient price action that we know the task of the retracement will be to fill in that inefficient price action right!
So once we had once we identified that there was consolidation and we had identified the expansion outside of that phase. We simply waited for the retracement and marked out the last candle before that impulsive move to the downside. Now, if we zoom into that candle that i marked out look at this, we have three indecision candles where the body is minimal and the wicks are on either side right? So i simply went off the wick and i had my stop loss at the wick of this candle right. That was how i entered in on this trade again going through. Why i took this trade consolidation.
We had that expansion outside of that phase, the retracement to finla, to fill in all of this inefficiency and then the reversal now for my tp again, i was targeting all of this imbalance that we had over here right. That was the last week we followed this imbalance.
I was simply targeting that area and now, let’s watch this play out, so let’s hit the play button and watch it. Do its thing come on quickly there it is beautiful entry, beautiful exit, okay, now, let’s zoom into that entry, show you guys it properly all right there! It is so we entered again at the wick of that candle stop loss at the week of this candle. Okay, we had a stop loss of 20 points and we had a tp of should be 360 points? There is 360 points nice, one to 18 risk to reward again. I’ve pulled out once it touched 15 hours secured a nice 7. 5 on this trade. Now again guys? This is the proof that this strategy works on all asset classes. I usually use it. I usually promote it on currencies. This is an example of me, showcasing it on the us500 so again, supply and demand trust me or asset classes, quick summary on this trade again for those of you that just need it: consolidation, expansion, the retracement, filling that inefficiency? Then the reversal to fill in that imbalance that we had down here. Okay, that’s all there was to this trade very textbook and as simple as now quickly go through the back testing that i done on nas 100 again, it was all purely supply and demand. Okay and the price and the use of the price cycle! All right, i’m gonna head over to the one hour, so you can see it properly. Okay, it’s all use of supply and demand structure and the price cycle. Okay, we’ll start from here? Why did i take this trade? i didn’t take it on live, but again this was all back tested. What do we have right here? people an area of consolidation, all right, and then we had that expansion which broke structure. Then we waited for the retracement to fill in any inefficiency.
As you can see, we had that inefficiency?
Here we have that inefficiency here, price pulls back, fills in all of that inefficiency, taps into this higher time frame, area of demand- okay, that was essentially, that was the last area of demand before that impulsive move to the upside right price pulls back taps into this area of demand and then begins to move over to the upside okay.
Now this entry over here we had that consolidation at this point here and then we had that expansion which again broke structure, wait for price to pull back mitigate into this area of demand and then continue the wave over to the upside. Now, why was our tp here again? what did we have up here? guys? the cycle- yeah consolidation, expansion right so price- pulled back tapped into the last area of supply of this area of consolidation and then continue this move over to the upside uh? To the downside. Sorry, okay, so we got lungs here we go and lungs here had a safe tp. This area of supply price continue to move to the downside, and then it started to make his way over to the upside okay wait for some structural breaks and we had that right over here. My apologies people, the video cut out on its own. I wasn’t sure why, but let’s get back into it, i kind of lost my flow. Where was i okay, we’re at this point over here? so as i was saying, we’re waiting for price to break over to the upside okay, wait for some structural break and we had that right over here. Once price broke that high, i started to look for my areas to jump in for buys okay once that structure was broken at this point right here, i was marking out this area of consolidation down here. Okay- and i marked out that candle that was unmitigated now you’re gonna say why did not choose this candle now? if we pay attention to this area here, look it tapped into this area? We that to me is mitigated!
I wouldn’t look at that candle i’ll look for unmitigated ones, and we have that right over here we have a very nice sell to buy candle mar we marked out of the open, stop loss at the close of that candle? Okay price pulls back taps into that area of demand. Okay and it starts making his move over to the upside? Now, what was our tp was this area of supply? why? what do we have right here, this area of consolidation? then we had this impulsive move to the downside?
Okay, this was with high volume created, so much inefficient price action price pulls back, fills in the inefficiency taps into this area of supply, which was the last area of supply before that area of consolidation, again guys the price cycle? Again, i’m going to emphasize all the time because it works on all asset classes: okay, consolidation expansion, retracement to fill in uh! To fill in any inefficient price action and then the reversal which usually seeks out for liquidity- and what do we have at this area over here, like all of this trend, line liquidity that we have? okay again, this was all there was to these trades. Okay, it’s price taps into that area supply. Then the reversal seeks for that! Uh trend line liquidity and then what does it tap into this area of demand right here? this was the last candle before it created this inefficient price action. Price reverse retraced!
First, took out this liquidity filled in that imbalance, tapped into this area of demand and began to move his uh way over to the upside okay. Now, for this cell right here, there wasn’t much to it simply prices. Moving over to the upside.
We had to move to the downside. What did we? what did he create right here? some equal lows: okay, we have some liquidity that needs to be taken out, and what do we have here? some inefficiency? okay, we have some inefficiency right here that we know needs to be filled all right, and what do we also have that unmitigated area of demand, but anyways now, for this trade price pulls back taps into this area of supply right here and i’m pretty sure it aligns with a premium level. That’s the high and that’s the low of the price range price. Look aligns perfectly over 79 price taps into that area and begins to make his move over to the upside. That imbalance is now filled, and this area of supply is now mitigated. Okay, but just to be safe.
We had our tp right here or you could have just simply targeted the wick of this area of demand! Okay, so that was for these cells again, the same thing for this cell right here, price made his move over to the downside, continue to break multiple structures.
Price pulls back taps into this area of supply right over here and then begins to make his move over to the downside. Okay, i personally targeted here because that’s where the imbalance was- and that was the last area of demand, but as you can see, it simply broke straight through that area of demand same thing here we have this area of consolidation! Price expands over to the downside, brake structure, price pulls back, fills in the inefficiency taps into the last area of supply and begins to make his move to the downside. Okay, so that was all there was to the back testing that i don’t known as 100, for you guys, and i hope you lot uh found it very useful and again emphasize on the point that this strategy works on every part of me: every single asset class, okay. I just showed you guys example of a trade that i took on the s, p 500 and some back tests, and i done on the nas 100.
Okay. I hope you all found this video very insightful again. Do you drop me a head over to my instagram? if you ever need to ask any questions, zm capitals drop me a dm. I get back to you as fast as i can that’s, where i’m most active people don’t drop too much comments. I don’t really reply there much. I don’t even reply that at all to be honest, so your best chance to get uh to get to me drop me a demo on insta and i’ll try and get uh back to your dm as fast as i can. So. I hope you enjoyed this video and if you do need anything again, do drop me a dm on instagram and i’ll get back [music]. .