---
title: 'TTrades Top-Down Chart Lessons #3'
source: 'https://youtube.com/watch?v=IzOQmcgLyA0'
video_id: 'IzOQmcgLyA0'
date: 2026-09-20
duration_sec: 461
channel: 'TTrades'
---

# TTrades Top-Down Chart Lessons #3

> Source: [TTrades Top-Down Chart Lessons #3](https://youtube.com/watch?v=IzOQmcgLyA0)

## Summary

This video is a detailed trade review of a CAD futures trade, demonstrating a systematic approach to trading based on dollar analysis. The creator explains how they use higher timeframe context, liquidity draws, and candle patterns to identify and execute a trade, and also shows how the same setup can be applied to USDCAD.

### Key Points

- **Trade Review Introduction** [00:00] — The video is a trade review of a CAD futures trade, starting with dollar analysis and ending with how to trade the same setup on USDCAD.
- **Monthly Timeframe Analysis** [00:27] — A bearish candle to closure on the monthly chart indicates a bearish bias for the dollar. The analysis focuses on whether price is more likely to reach the previous month's high or low, with a preference for the low due to proximity and equal lows.
- **Reversal and Retracement** [00:54] — Expansion into the high met with expansion out suggests a reversal. A retracement instead of a higher high confirms a new phase of price, leading to a lower high and lower low structure.
- **Higher Timeframe Confirmation** [01:32] — The daily chart shows a draw on liquidity targeting previous lows, with a candle to closure. The hourly chart confirms a change in the state of delivery with a B-reversal candle.
- **Selecting the Asset** [02:01] — With a bearish dollar bias, the creator looks for bullish setups in foreign currencies. CAD futures stand out due to a daily formation with a v-shaped reversal, a fair value gap, and an ideal candle to closure.
- **Entry and Invalidation** [02:59] — The daily opposing candle must be respected, with the wick of the next candle forming in the upper half. Protected swings provide invalidation levels, and price opening near an invalidation allows for a positional entry.
- **Trade Execution and Exit** [04:12] — Entry was taken after price respected a level, with a stop loss at the protected low. The trade was exited at 2.3R after noticing three candles of expansion and consolidation on the 30-minute chart, setting a TP at a high.
- **Applying to USDCAD** [05:36] — The same setup applies to USDCAD but in reverse (bearish). The analysis includes candle to closure, protected swings, and fair value gaps, yielding similar results.
- **Alternative Assets** [06:39] — The setup could be applied to other assets like GBPUSD, which had a more expansive move on the day, though CAD futures had better structure.

### Conclusion

The video provides a comprehensive, step-by-step framework for trading based on dollar analysis, emphasizing the importance of aligning timeframes and using liquidity concepts. It also highlights the flexibility of the setup across different currency pairs and assets.

## Transcript

How's it going everyone? In this video I will be doing a trade review over a trade I took on CAD
futures. Now we will start with a dollar analysis. I'll show how I use that dollar analysis to trade CAD futures and it will also end with how you could trade this on USDCAD. So the first thing
I want you to notice on dollar here is we have a bearish candle to closure on the monthly time frame So that is telling me that I am bearish on this monthly candle Really I'm looking at this and asking is price more likely to reach for its previous month's high or its previous month's low
Considering we are closer to previous month's low. I'm just looking for that previous month's low to take it out It also helps we have equal lows right here. So just to add to that context we have taken out this high
we have expansion into the high met with expansion out so blending with those phases of price this is a reversal and right here do we get a new phase of price we get a retracement right it doesn't expand back higher to make a
higher low and make a new higher high it is a retracement so then we continue lower and so I really don't want to see this high taken out as we continue to trade lower because we have a high a lower high I want to see a new lower
high and a new lower low. So with that we have a closing candle here. I want to see that being respected and we have a candle to closure. So now I have everything lined up here on the dollar.
I have a higher time frame draw on liquidity where I'm looking for the daily chart to trade into these lows. I have a candle to closure on the daily and the last thing I can do is go down to the hourly chart and confirm that we have a change in the state of delivery in this candle
too. If you notice we do as price reaches higher and trades lower. If you focus on the bodies here we have a nice B reversal to add to that candle to closure Now that I have a bearish bias for dollar that gives me a bullish bias for foreign currencies I going to want to take a look at
these foreign currencies or the currency futures and find a chart that I like. So you see here we could trade euro into this high that is valid. We could also take a look at pound with this candle to closure and trading it higher. Now as I scrolled through these the one that caught my eye
was Canadian futures and that is because of how it has this daily formation. If you notice it also took out this low here it has a nice v-shaped reversal this opens trades into this fair value
gap and then have a candle to closure. Now what's specific about this candle to closure it is an ideal candle to closure it also forms a protected swing here. So now I can look for this next day in candle three to trade higher where would I want to see this trade into previous month's high and
and then also our previous month's high. And you can see we have a nice equal highs up here above if we had wanted to take swing targets. So from the daily, I drop down to the hourly to check for the structure.
So letting this play ahead, my indicator went and marked out this level. And what I'll do is I'll keep this drawing on the daily chart here. So one thing I want to say is I want to see this daily opposing candle be respected.
So what do I mean by that? I can mark out 0.5. I want to see the wick of this next candle formed in the upper half of this area as well as the upper half of this daily candle. So I know if I move this over here I want to see the wick formed
in this area which is in that t-saw. So I know I want to see price trade higher. What is my next step? I want to look for protected swings. You can see I have one here. This price reaches into a
fair value up and closes over. So what does that do? That protects this low right here. So I have an invalidation if I wanted to take an entry But what else do I have I have a new invalidation because we have a new protected swing Price reaches into this third eye gap and then closes over So now what do I have I have price opening up right near an invalidation
so I could look to take a positional entry into this overnight and let this swing into the next day or into the morning to see if it works out or not. Now letting this play, where did I get on side on this trade? Well, I saw price respect this right here,
so I went ahead and took an entry right here, put myself on the protected low, and then I was looking for price to trade into this high here. Now, let's see how this worked out overnight.
So here we are into the New York session. This is when I woke up, and what are we at? We're at over 2R. I was looking to take some partials off here, but what did I notice? We have three candles of expansion. This is when we can get a new phase of price. I went and looked at the 30-minute chart
here and I saw that price was consolidating so what I did was I just set a TP at this high because if we have a consolidation and price takes a high that's when we can get a new phase of price and reverse. So letting this play out I took a TP right here I entered right in this candle here
and exited in this candle here as you can see on this frame and I just exited there with right around 2.3R. As we let this play out you can see it was a pretty good exit. Now if we zoom back out
the daily chart if i would have swung this trade it would have worked out well but it was a day trade for me i was just trading the daily range of this daily candle here which i did rather well but if i did want to swing it this is why it's important to align your time frames
if you do get this really nice move higher here as we get an expansion on the monthly candle and you're trading that expansion if i go back to the hourly chart here you can see how that area for my entry was respected and then we do get that breakout of the range or that expansion.
So now what if you wanted to trade the same thing but on USDCAD? Well you have the same idea but it going to be the other way Since you are bearish on dollar and it is USD CAD not CAD USD it going to be a bearish setup So going to USD CAD
it would be the exact same idea. Here we have the candle to closure. We're looking for this to trade lower. And then once again, I'm just looking for those protected swings. Here you can see I have a protected swing. And here we have another protected swing,
reaching into a fair value up and then closing below so price opening up right into an order block i can look to take that same entry but my same stop loss and do i get two r right well if
i approach it the exact same way i get essentially the exact same results now if i let that continue to play out it would also get that expansion because if we go back to the daily chart what is it? It's that daily and monthly expansion candle. So we go and trade into those lows and
those targets below. Now, just because I chose to trade this on USD CAD or CAD futures doesn't mean that you couldn't use the same setup on a different asset. For example, if you went ahead and traded this on GDP USD, you had a way better expansion on that day. So I actually did not
choose the strongest asset that day. I chose the strongest asset over the next few days, But I could have done better and traded GDPUSD here. If we go to the hourly chart, you'll see what I mean. That same time I entered CAD futures right here, we get this massive expansion on GDPUSD.
That being said, the structure was a bit better for me on CAD futures than it was on GDPUSD, but GDPUSD actually had the more expansive move. Now with that, I hope you enjoyed this video. If you have any questions, let me know in the comments section below and I'll get to them.
I hope you have a great rest of your day and I'll see you guys next time.