Stop Overcomplicating Trading (Here's the Fix)

how's it going everyone and welcome back to another video in this

video we are going to talk about keeping it simple but

let's talk about how to keep it simple within the fractal model so the first thing we're going to start with is a daily chart because if we are trading intraday we are inside that daily candle and want to have a daily bias.

So what are we looking for first? We're going to focus on a candle to closure.

So a candle to closure is when a candle sweeps out its previous and closes back above that level or below that level.

And I have a dedicated video on that. But with a candle to closure on the daily chart, I'm going to go down to the hourly chart and make sure I have an hourly change in the state of delivery.

And that'll be my confirmation that this wick has formed.

So with both of those met, I'm going to look to trade candle three. Now is it also possible to trade candle four?

Yes, but the name of this video is keeping it simple.

We are only going to focus on trading candle three on all time frames.

So now that we have a daily bias or the days we are going to be trading, we're going to go down to a lower time frame.

And this is where you have the decision to use the four hour or the hourly chart.

With the four hour chart, you're going to be looking for a candle two closure. You do not need a point of interest here.

Now with an hourly chart, you do need a point of interest and you do need a candle two closure.

Now following that candle two closure, we're going to go down to the lower time frame.

So if you're on the four hour, you'd go to the 15 on the hourly, you'd go to the five minute,

and we're going to be doing the same thing, trading candle three. So you see how we're trading candle 3 or the continuation candle on multiple different timeframes in the same direction, that is when expansion can occur.

So following a candle 2 closure on the hourly or 4 hour, we will look at that aligned timeframe and make sure we have a change in the state of delivery.

With that change in the state of delivery, we are then able to look for entries in candle 3 on that lower timeframe.

How are we going to do that? We're going to let the wick form and then trade the body. So what are we looking for? A continuation.

Here you can see this is where we reach into a point of interest or into that fair value gap, form a continuation.

That's where we can get on side with this trade. If you notice, we're using a higher time frame candle three, lower time frame candle three,

and a protected swing in that direction. And as we let this continue on, this is where you get expansion trades as we can look for the daily candle to expand.

So let's get into trading view and go over a few examples of this. So here we are in our first example.

We are on the Swiss franc futures chart. And what do we have?

The daily chart on the side via my indicator and the hourly chart here.

Now, do we have a candle to closure on the daily?

Well, price swept out its previous candle here and then closed back above it. So we do have a candle to closure on the daily.

Now we have to confirm. Do we have a change in the state of delivery?

I find the low, find the series of candles

that made that low did we close over it yes we did

now you might be asking these are equal lows do i

really want to trade away from that if we were trading price in this area

here i wouldn't really want to trade that because price is

pretty close and could just sweep it out before going but

because price displays so far away and price is closing up

here there's a lot of separation between the opening price

and this low so it doesn't really bother me

trading away from those equal lows down there because price is

so far away from them now if we go ahead and

go to the four hour chart because all of our criteria is met on the daily and hourly what are we looking for another swing point because our goal is to trade candle three on multiple time frames.

So letting another candle form, do we have a point of interest? Yes. So we don't need a point of interest on the four hour, but it is helpful.

We have a candle two closure. So what are we going to look for?

We're going to go down to the 15 minute time frame and see if we have a change in the state of delivery inside there.

So go ahead, go down to the 15 minute time frame.

We'll zoom in here and let this play out and see if we have a change in the state of delivery.

So here we don't have a change in the state of delivery yet. We just formed that. Now why didn't that form until at least start at candle three?

Well, we find the series of down closed candles. Price hadn't closed over it yet.

But now that it has, we can anticipate that this low should hold the candle too low in the four hour, and we'd want to see this expand higher.

Now what do we want to see? We want to see a continuation entry. So what are we looking for?

price to reach into a fair value gap, which we do here. Now on these futures charts, they're a little bit choppy, but that's fine.

Then we want to see a close through this level here to form a continuation.

Let's see if the next candle can do that. It can.

So now I could take an entry here, put my stop on that new protected low. And what is that?