what is up i hope you're having an
incredible day if not no worries it's
about to get better here's why in
today's video i'm going to be teaching
you a one-hour chart trading strategy
that is extremely simple yet provides a
ridiculous edge over the market a
ridiculous money making advantage over a
long period of time and the very first
step to you making money as a trader
becoming a professional becoming
profitable is you having a strategy or a
way of trading that gives you an
advantage over the market this is the
same exact strategy that i use to enter
the trade you see on the screen on the
dollar swiss that's currently up about
184 pips at a 2.9 to 1 reward to risk
ratio so by the end of this video you're
gonna know exactly how i placed this
trade and how i place trades every time
i see patterns like this in order to
give myself an advantage every time i
place a trade on the one hour chart i'm
gonna go ahead and let the intro and
disclaimer roll while i do click that
like button for me go ahead and
subscribe to the channel if you are new
and i'll be right back to teach you
everything you need to know about this
one hour chart trading strategy see you
in a second
[Music]
welcome back so first off i'm going to
be teaching you this strategy and every
rule around it after that we're going to
take a look at the live trade that you
saw before the intro and disclaimer i'm
going to break the whole trade down
using the strategy that i'm teaching you
after that we'll take a look at some
bullish and bearish examples of the
strategy to make sure you have a good
handle on it then we'll take a look at
the results of trading this exact
strategy over the past year on the
dollar swiss and after that i'm going to
give you a special added bonus and teach
you a way to add some ridiculous
accuracy to this exact trading strategy
so let's go ahead and dive in first with
what do you need on your chart in order
to trade this strategy well you only
need two things one of those is an
indicator which is the rsi or relative
strength index
this is going to help us spot reversals
because this is a reversal strategy the
second thing you need is just your
candlestick charts it's almost purely
based around price other than the rsi so
for those of you who like price action
trading you're gonna love this one on
our rsi for the settings i go to style
and remove the rsi based m8 that's just
not something that i use whatsoever
inputs are gonna stay exactly the same
we're gonna be using a 14 period rsi
indicator and for those of you wondering
because i know i might get questions
about this this little ma settings down
here is irrelevant unless you have this
checked so since we don't have it
checked it's completely irrelevant next
up what are you going to need well
the strategy itself is going to be based
on two different patterns that we can
find in price all over the place let me
grab a trend line here and i'll show you
what i'm talking about so in a downtrend
what does this look like for those of
you
who are more experienced traders type it
in the comments
what would that be
that would be an inverted head and
shoulders pattern now i know this is
very normal don't don't click away from
the video just because i said head and
shoulders bad and i promise it's going
to get interesting in just a second now
this would be an inverted head and
shoulders pattern what would this be
i told you guys it was simple but simple
does not mean not profitable as you'll
see whenever we get to the results of
this strategy what is this
this is a double bottom right so double
bottoms
inverted head and shoulder patterns if
you go out in markets and just randomly
trade these everywhere you're very
likely not going to have a very accurate
trading strategy but if you have rules
around them trade them in a certain way
with a certain reward risk ratio and you
only trade these patterns during
reversals
and you use the rsi indicator to help
you spot those reversals some really
cool things can happen and i'll show you
again the results of the last year
trading this on the dollar swiss a
little bit later in the video but
essentially what we're going to be
looking for is the rsi
to go oversold or overbought
when the rsi goes oversold which means
that the line on the rsi goes below 30
then we're going to start looking for
price patterns chart patterns like this
these are the only two that i use and i
use the inverted versions so i also also
use regular head and shoulders and a
double top which we're going to go over
very very soon but
very soon what the [ __ ] very soon but
this essentially is what we're looking
for we want to see the rsi going to
oversold which tells us price is primed
to have a reversal after that we want to
see price create a double bottom
or a head and shoulders pattern
and we'll go down to real charts i'll
break down the trade you saw before the
intro and disclaimer and we'll talk more
about entries stops and targets let's go
ahead and go down there now so here we
are on this trade and outside of rsi
just going oversold
there's one other way we can actually
enter a trade and that is if we have rsi
divergence with our price pattern with
our chart pattern with that being the
case this actually adds accuracy to the
trade if you can see rsi divergence in
the midst of a head and shoulders
pattern that is a very accurate trading
opportunity at least according to my own
testing and trading so with that being
the case let's go ahead and break down
this whole trade so what we're looking
at here is price heading lower how do we
know that price is primed for a reversal
well we start to get into the oversold
territory under 30 on the rsi indicator
so at that point we know price is primed
for a reversal a lot of times people
just go oh the rsi's oversold i need to
buy no we need more confirmation than
that in order to create an accurate
strategy that gives us a massive edge
over a long period of time so what we
need to see after oversold is something
like
a head and shoulders pattern or inverted
head and shoulders since this one is a
bullish pattern so then we have this
first shoulder created right here coming
down to the head of the pattern
up down to the second shoulder so for me
what i want to see
just to give you the rules so it's more
set in stone more objective is after
price creates the head because right
here
is where i start looking for head and
shoulder patterns and i know that that
seems odd like how do you know there's
going to be a head and shoulders pattern
you don't but you start preparing
yourself and what i like to do
is at this point if we get a pullback
that comes anywhere in
this area let's say so anywhere from
here up to here
down to here wherever it may be and then
we get a pullback that
comes into this area anywhere from here
all the way down to the head of the
pattern if we get into this area then
i'm classifying this
as the right shoulder of the pattern
that just keeps it a little bit more
objective for me in terms of spotting
head and shoulder patterns so with that
being the case after we get into this
area between
our left shoulder and the head of the
pattern that's when i start looking for
buying pressure buying pressure for me
consists of just a few things like
candlestick patterns like two or more
green candles in a bullish trade like a
big close above candle buying pressure
is pretty simple it just means whenever
you see green candles start coming to
play then that is buying pressure let's
push the market forward here as we push
up and back down what does that look
like that looks like buying pressure
right if we keep going forward you can
see even more buying pressure come in
the exact place i decided to enter was
after this candle because at this point
we've seen a lot of buying pressure i
think it was this candle it may be the
one before it
may have been this one we'll see
whenever we hit play but either way
that's a lot of buying pressure coming
to the market so with all that buying
pressure coming into the market i
decided to go ahead and place an entry
here based on the exact strategy you're
learning we have price coming into the
oversold area we have divergence along
with a head and shoulders pattern again
one of the most accurate ways you can
trade this pattern is with rsi
divergence happening while the head and
shoulders pattern inverted head and
shoulders please don't get on me in the
comments for that but while the inverted
head and shoulders pattern is forming
if you see rsi divergence again super
accurate so
as price comes up we create the second
shoulder we see some buying pressure
coming into the picture right in this
area place the trade for me and for what
you're learning in this video and this
is what i did on this specific trade and
for all the testing and trading results
you're going to see throughout the video
i do a 15 pip stop loss under the head
of the pattern or under the lowest low
of the double bottom we'll talk about
bearish trades in just a second let's
stick to bullish to keep things from
getting confusing so at this point 48 or
so 48 or 49 plus 15 would be 63 pips
so here we are at 63 and as you'll see
whenever i click play i actually ended
up getting a pretty massive reward risk
ratio on this i say man it's about a 2.9
so far but let's go ahead and click play
and look at how this trade played out so
far so while editing the video i
realized that i did a really poor job of
explaining rsi divergence so i want to
do that for any of you who are new and
don't understand what that means before
we take a look at the trading results so
rsi divergence is really simple it just
means price is creating lower lows on
price right and that the rsi indicator
itself is creating higher lows that is
bullish divergence we'll take a look at
bearish divergence as well in just a
moment but just realize that that's what
rsi divergence is and also for my
targets the way that you're going to see
them being taken throughout the video is
at a 1.4 to 1 reward risk ratio based on
the stop loss i just taught you but as
you'll see in a second for this specific
trade i actually got multiple targets
and ended up with a much higher than 1.4
to 1 reward to risk ratio as you can see
we've been in this trade for a while now
but we have now pushed up to over a two
point eight to one reward risk ratio and
about 178 pips here on this trade just
simply using
the rsi to help us spot when a market's
primed for reversals and chart patterns
i know it sounds super simple and it is
super simple but as you'll see a little
later in the video this is something
that has provided a great edge in the
market over the long term so let's go
ahead and take a look at what's
happening now so i can show you a
bearish version of this what's happening
right now on the dollar swiss and by the
way this happening right now if we get a
big ish red candle that shows a little
more selling pressure than this
i'm exiting this trade and probably
switching my position from long to short
why would i do that well we have
this same exact situation that we had
below in the opposite direction now we
have price coming up and pushing above
70 on the rsi so for a sell trade when
we're going short we want to see the rsi
above 70 to indicate markets are primed
for a possible reversal right now we're
above 70 or have been so since we're
above 70 and do we have rsi divergence
with our head and shoulders pattern yes
we do does this look like a head and
shoulders pattern sorry i didn't point
that out earlier this is in fact a head
and shoulders pattern already i'm just
waiting for selling pressure we have our
first shoulder here
we have the neckline we have the head of
the pattern we have our second shoulder
coming up here and now again i'm just
waiting on a bigger red candle a close
below candle would be great at that
point i'm exiting this trade and going
short on the dollar swiss because of the
same exact strategy i used in order to
go long so using it in two different
directions here and breaking it down one
more time the reason is we have a head
and shoulders pattern here
does it happen with rsi divergence or at
least after rsi was overbought
yes it does so super simple here and i
know i said i was waiting until the end
to show you this bonus but
actually this is all happening
inside of a major level of structure on
the daily chart so on the daily chart we
have this major area that i was not
actually paying attention to as
resistance but since we're up in this
area and we're getting
this head and shoulders pattern with our
rsi being overbought this little level
of structure does in fact add
confirmation to all of that being a
possible place that price could reverse
so all of those things coming together
to equal a valid bearish version of the
strategy you're learning right now let's
go ahead and take a look at a couple of
examples of using double bottoms and
double tops with this same exact
strategy so first we'll take a look at a
double bottom trade using the strategy
go ahead and try to break the trade down
yourself as i'm doing it as well so at
this point what would we be looking for
to know that the market is primed for a
reversal we've already talked about it
that would be the rsi indicator going
below what
going below 30. so here we have that 30
line is the rsi indicator going below
that 30 line yes it is and we don't have
to have this but
is it creating divergence well we have
lower lows on price higher lows on the
indicator so we know we're primed for a
reversal even more this is giving us
even more confirmation that price is
likely to push back up okay with that
being the case starting from where we
are do we have a trade right now
no we don't have any kind of trade right
now but in terms of looking for a double
bottom let me break that down with you
this is what i'm looking for for a
double bottom i want to see my first
bottom created i want to see price start
to push back up after price starts to
push back up i'm going to create a zone
my zone is going to be between the
bodies and the lows of the first bottom
at this point i want to see price coming
into that area and what i do not want to
see is a candle closed below
that low that we first created because
that means trend continuation to the
downside is likely i'm not trying to buy
when it's likely market's going to
continue lower right so with that being
the case what i do want to see or can
see is a body of a candle closed inside
of that zone or nobody touched that zone
that sounded weird like nobody or no
body of a candle touched that zone but a
wick can come into that zone and that
would be a valid double bottom as well
so there's just the rules that i use for
a double bottom let's see what happens
here
price is going lower lower lower we do
not have buying pressure but do we have
a valid double bottom at this point yeah
here we have a valid double bottom after
the our size went oversold and after we
see rsi divergence so all things are
coming together to give us a lot of
confluence for a possible reversal now i
would personally be waiting on buying
pressure
there's a green candle i wouldn't call
that enough buying pressure yet
that i would call buying pressure we
have two green candles coming out of
this area this one looks to close above
the previous candle buyers look to be
taking control here at the second bottom
when you include that with the rsi
divergence and coming out of oversold it
gives me all the confirmation i need to
be comfortable placing a trade we set up
the stop loss or at least i do in the
same way i taught you earlier we're
going 15 pips below the lowest low of
the double bottom which is going to be
right around 28 pips in this case
and for our target as i said before
throughout all the examples here we're
going to go with a 1.4 to 1 reward to
risk ratio so here we are entered into
the trade based on the strategy you're
learning price pushes up and eventually
does in fact hit that target now there
are other ways you could enter this feel
free to make the strategy your own you
could enter on the break of the neckline
to add accuracy but you're also going to
have a much harder time getting a larger
reward risk ratio so
let's go ahead and take a look at a
double top now and i'll break down a
double top as well using this strategy
and these things happen everywhere guys
like see if you can spot it on your
chart right now there's actually a trade
on the chart where we're right at where
we just were with the double bottom we
took a look at where is
this exact strategy happening on the
chart right now
hopefully you were able to point it out
right here this is the double top
version of the strategy i'll break that
down in a second but let's look left
okay so starting from down here
right we start down here we push up
higher when's the first time we go over
ball
right here do we have a valid double top
here
hopefully you said no based on the rules
that i use for a double top here's what
i would need to see i would need to see
a candle that at least touches but does
not close above
this area
does that happen no we get closes above
that area normally this means we're
going to see the uptrend continue in
this case we did see that uptrend
continue so this would not be our trade
what what would we be waiting on after
that i don't know if you guys have ever
tried to say what would we
a bunch of times but i'd say it a lot in
videos and it almost always gets me i
almost always stumble over that but
after this we would be looking for price
to come back up into
the overbought area above 70 on the rsi
does that happen
yes it does we get up into the
overbought area on the rsi as we do
price creates
one top
the neckline of the double top the
second top and i would consider this big
red candle selling pressure therefore i
would enter the trade based on that
selling pressure with my 15 pip above
the high stop loss which will be 40 pips
on this specific trade and with that 1.4
to 1 reward to risk ratio as you can see
price easily goes down to hit that
target on this specific example of
course that won't always happen and now
that we've actually taken a look at some
examples i want to go ahead and break
down the full year on the dollar swizz
using this exact strategy show you some
of the wins some of the losses the win
rate and the overall roi before we do
though i want to show you an example of
this in crypto because this is a
strategy that i use not only for forex
but also in some of my shorter term
crypto day and swing trades so let's
break this down here on the chart of
bitcoin what do we have happening right
now in bitcoin we just saw price coming
to an oversold area which means the rsi
went below 30 telling us what that
bitcoin is primed for at least a little
bit of a reversal depending on what
happens again if you just buy every time
markets go oversold you're going to lose
money so with this being the case what
are we waiting on well at this point i
would be waiting on that double bottom
and what i would do
is go ahead and put my box on here
between the bodies and the lows of our
first bottom with that being the case we
can hit play
and you can see that price comes into
that area
and then does what creates buying
pressure showing me that this support
level is holding as our double bottom
after rsi going oversold so we have a
market that's primed for a reversal here
on bitcoin we then have buying pressure
after our second bottom which gives me
everything i need to enter the trade for
cryptocurrency i just go one atr below
the
bottom so at this point the entry candle
would be here which is about 400 dollars
so the atr of this candle is about 400
and the way i'm getting that is looking
right up here at my atr indicator i have
a full video on the atr you can find it
up here somewhere or just type in atr i
think i'm one of the first people that
pop up with that video but let's go 400
below 510 so we're gonna go 910
for our stop-loss something like that
and we'll go 920 not a big deal for this
example and a 1.4 to 1 reward risk ratio
as we've been doing and actually i
changed this up in cryptocurrency i set
a minimum of a two to one reward risk
ratio when trading the strategy so let's
see if this specific trade works out and
here you can see we do in fact push up
and actually hit that target at a two to
one rewards risk ratio now let's go take
a look at the results of the dollar
swiss from a full year of trading this
exact strategy
on the screen you can see the results
from the past year this is from april of
2021 to now april in 2022 the results
are as follows
using exactly what i've taught you stop
loss of 15 pips below or above the
pattern with a one point four to one
reward to risk ratio we produce 35 wins
15 losses for a 70 win rate and 28r
which just means 28 times your risk if
you're risking one percent that means it
would have made 28
risking two percent means you would have
made 56 percent
so on and so forth but with that being
the case you can see that using
very simple chart patterns
by simply using them when the rsi
indicator is either going through
divergence or coming out of oversold or
overbought produces an edge so if it's
this simple to produce an edge to
produce a money-making strategy then the
question you may be asking is why is it
that so many traders fail or have such a
hard time becoming profitable after
years and years of trying
and i think the best way for me to
explain that is with an example so let
me help you out with that question if
it's something that you were asking
yourself with an example that we're
looking at here right this is that head
and shoulders pattern we were looking at
the rsi's overbought so let me explain
this if this was happening at a level of
structure let's say it was the absolute
perfect trade this level of structure
has been tested a hundred times by price
this is a you say it was an even handle
number let's say the rsi instead of
being at
80 was at like 99 almost 100 so it's got
to fall right let's say we get the
perfect head and shoulders pattern a lot
of selling pressure afterwards
what most traders tend to do
is bet and trade based on that one trade
and whether they're they're risking way
too much on it or just believe in that
one trade because of all the different
confluence that's coming together
the fact of the matter is the outcome
of that one trade no matter how perfect
it seems
is completely random
i'll say that again
the outcome of one trade no matter how
much confluence is coming together is
completely random
in trading we are trading based on
statistics and yes the more
confluence we can put together the
higher our statistic advantage goes over
a large sample size of trades but the
outcome of a single trade is completely
irrelevant over a large sample size so
what most traders tend to do is they
have that mindset of if i have enough
confluence coming together that means
that i should go short here head and
shoulders pattern super highly tested
level of structure even handled number a
lot of selling pressure after head and
shoulders pattern i'm going short i'm
risking my entire account or i'm going
short and this has to win and then what
happens
the trade loses and they go home
screw this this doesn't work
obviously steven was lying because it
didn't win this one time but i'm telling
you now
one specific example has no bearing on
the way a strategy will perform over
time let me give you an example of the
right way to go about it if you do that
perfect scenario
one time the results are random but if
you do that perfect scenario i just
discussed over the course of a hundred
trades you're gonna be right a lot more
than you're wrong and you're gonna be
right with a higher one higher than one
to one reward to risk hopefully so what
we have to do as traders and something
that i really want to get across to any
of you that are new or have been
struggling for a while and didn't
understand this is that the outcome of
one trade no matter how much confluence
is coming together is irrelevant and
random but the outcome and the
statistics of our strategy
comes out and and plays out over a large
sample size of let's say 100 trades and
now with that in mind
comment this below
how many of you who are new or still
struggling in your trading have ever
traded the same exact strategy in the
same exact way on the same exact pair
100 times
i imagine the answer is very few i guess
i'll see whenever you guys comment below
but
most traders don't do that here's what
most traders do let's go ahead and take
a look back through a few of these
trades let's find an area where there
was a few losses
so this just will be a very good example
let's say you start
trading
right here
this is what most traders do and i'm
sure you may have been caught in this i
i'm not blaming you and it's not your
fault i did this at the beginning of my
career too but i learned from it and now
i want to teach you the mistakes i made
to help you avoid them so what will
happen is a trader will start trading
right here
their first trade will lose see the red
line red lines are losers green lines
are winners by the way their trade will
lose they'll be like
[ __ ]
does this even work they're trying to
lose again their own they're about to
give up they'll win one
oh yeah okay no it does work it does
work they'll win another one
this definitely works awesome i'm gonna
win the rest of my trades for the rest
of the year they'll lose another one and
they'll be slightly below break even
after five trades which in this case was
about a month of trading
and they'll just give up on that
specific strategy and what you end up
with if you give up right here is
probably somewhere around a negative
depending on your risk let's just say a
negative three percent
return right so you end up with a
negative three percent return because
you decided to completely give up on
trading well what do you miss out on
when that happens
you miss out on a series of winners that
could have pushed you well above
breakeven and into profitable trading
but because you decided to quit after
five trades after a month of trading a
strategy
and it just being break even or barely
losing you ended up missing out on the
bigger picture because the bigger pr
picture is that this strategy does in
fact provide a higher than one-to-one
reward to risk ratio along with a bigger
than 50 win rate which equals profitable
trading if you can stay consistent and
discipline enough to the strategy to let
that edge play out so one of the biggest
reasons that i see traders not becoming
profitable or struggling for years or
beginners just giving up is that they
don't give the strategy that does have
an advantage enough time for that
advantage to play out so that is going
to be one of the big lessons from
today's video hope you take that and
actually learn from it when you're when
you're trading
i know it's
it's really easy to focus on that one
trade that lost or that one trade that
won
but overall in the grand scheme of
things one single trade or a group of
five trades
throughout your entire year of trading
is going to be nearly irrelevant so keep
that in mind moving forward hope you
guys enjoyed this content if you did
make sure to comment below let me know
you made it to the end make sure you
click that like button make sure to
subscribe if you are new and also if you
would like some more advanced training
then we do have some space available in
the ttc forex university which is our
flagship program now so if you want to
get involved with that the link's in the
description or you can go to
www.ttcfxuniversity.com it'd be a
pleasure to have you aboard the
university comes with a full training
course that teaches you all the
strategies i'm currently using along
with a lot of techniques i've learned
over the past decade of my own trading
career according to risk management and
trading psychology so if those are some
of the things that you're struggling
with and if you'd like my analysis each
and every week across the entire forex
market then we'd love to have you aboard
in the university again in the
description or you can go to the link
that is currently on the screen if not
that's not a big deal at all no worries
whatsoever i'm still going to keep
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youtube but make sure you are subscribed
so you stay up to date with that content
and i'll see you guys in the next video
talk soon