I Found The Best Strategy To "Buy The Dip" Like a PRO | Summary and Q&A

TL;DR

Learn how to analyze market structure and implement a low risk high reward swing trading strategy.

Key Insights

• 🪛 Price movements in all markets are driven by supply and demand, and they occur between areas of support and resistance.
• 📈 Trends in price movement can be categorized as uptrends, downtrends, or sideways trends, each consisting of specific patterns and sequences.
• 😚 Bullish pressure in an uptrend comes from both new buying decisions and shorts exiting their losing positions, fueling the upward movement.
• 😚 Bearish pressure in a downtrend comes from both new selling decisions and longs exiting their losing positions, fueling the downward movement.
• 😘 Fading consecutive up/down days that go against the market structure of swings can be a low risk high reward trading strategy.
• 🪚 Long entries require four or more consecutive down days, and short entries require four or more consecutive up days. Entries are made above/below the next bullish/bearish bar with an increase in volume.
• 😘 Using the market structure to filter consecutive up/down days helps identify low risk setups.

Transcript

Hello and welcome. Today we'll analyze market structure, and I'll reveal a low risk high reward swing trading strategy you could apply on any market, forex, stocks or crypto. So if you could… like, subscribe to the channel and stick around for the full video. The principles governing price movement are the same on all timeframes. Price moves as a f... Read More

Questions & Answers

Q: What are the key observations in an uptrend?

In an uptrend, price extensions are longer than pullbacks. Extensions break above previous swing highs, while pullbacks do not break below previous swing lows. This results in a series of higher swing highs and higher swing lows.

Q: How does bullish pressure fuel an uptrend?

Bullish pressure in an uptrend comes not only from new buying decisions but also from shorts (traders who tried to pick the reversal) exiting their losing positions. The uptrend is fueled by losing traders on the bearish side.

Q: What are the key observations in a downtrend?

In a downtrend, price extensions are longer than pullbacks. Extensions break below previous swing lows, while pullbacks do not break above previous swing highs. This results in a series of lower swing lows and lower swing highs.

Q: How does bearish pressure fuel a downtrend?

Bearish pressure in a downtrend comes not only from new selling decisions but also from longs (traders who tried to pick the reversal) exiting their losing positions. The downtrend is fueled by losing traders on the bullish side.

Q: What is the strategy for swing trading?

The strategy involves fading consecutive up/down days that go against the market structure of swings. For long entries, four or more consecutive down days are required, and the entry is above the next bullish bar if there is an increase in volume. For short entries, four or more consecutive up days are required, and the entry is below the next bearish bar if there is an increase in volume.

Summary & Key Takeaways

• Price movement in all markets is governed by supply and demand, and it moves between areas of previous supply/demand imbalance known as support and resistance.

• Trends in price movement can be categorized as uptrends, downtrends, or sideways trends. Uptrends consist of upward extensions, swing highs, downward pullbacks, and swing lows. Downtrends consist of downward extensions, swing lows, upward pullbacks, and swing highs.

• An uptrend ends when the swing low that leads to the highest swing high is broken, signaling a potential trend reversal. A downtrend ends when the swing high that leads to the lowest swing low is broken.