[00:02] lot of things but I'm telling you right now is pretty much the main now is pretty much the main part yes yes yes what's going on listen today we are going to learn how to read the chart and how to scalp the market
[00:16] right and I'm going to show you you know the best way that I know how to read the and if you're looking at the chart right bunch of squiggly lines or a whole bunch of candlesticks going back and forth and
[00:29] you can't understand what's going on well today guess what I'm going to help you guys a live example of a trade that I took and you know me making $4,000 on this trade so we're going to show that later but let's go to the first thing
[00:46] look for guys when it comes to reading the chart is Direction all right everybody will have their opinion on a lot of things but I'm telling you right now direction is pretty much the main part and the reason why is if you don't
[00:59] have the direction right you know honestly everything else really doesn't matter so most people right when it comes to looking at the market they will probably look at multiple time frames so they will look at the daily chart right
[01:12] the 1 hour 5 minute and they want everything to line up and honestly that's not a bad way to trade right but me personally I don't do that but let me show you an example of what I'm talking about so right here guys this is NASDAQ
[01:26] right so if you look at a daily time frame we are definitely are in a uptrend right and if we look at this right the market just pulled back right here and let's say that you know we looking at this chart and we see that the market
[01:39] broke out of this trend line right here and it looks very very bullish so if it looks bullish on the daily chart right and we go to let's say let's go to 4H hour chart right and we see that we breaking this trend line and it's you
[01:53] know making higher lows right here and we go to the 1 hour chart right same thing right is looking bullish everything's looking good right and then we go to the 5minute Chart which is
[02:06] that 5-minute chart so overall right here we have a nice breakout and we can look for a continuation to the upside because now overall we have a general idea you know or general direction where the market wants to go so we just go to
[02:22] the 5minute chart to look for entries now me personally I don't do this sometimes I look at that um but for the most most part I don't the reason why is because I'm trading NASDAQ and the indices for the most part so NASDAQ S&P
[02:36] indices for the most part so NASDAQ S&P 500 the right which is us30 uh Russell SO trading those indices they pretty much move the same so I'm looking market and if you go back to this example let's go back to the daily chart
[02:49] how many times are we going to really have the market lining up like that not that many times because overall let's say for example okay we have a nice bullish Trend right here right so we said okay I'm looking for Longs but what
[03:03] about this day right here right which is the fourth in our head we looking for Longs because the daily chart is long right but guess what that one candle basically produced this bearish day right here so how are we going to day
[03:16] trade that right we can't so the only way to day trade in my opinion is to focus on the five minute chart so that's my main chart the 5 minute chart is my main chart for direction because on a daily chart it could be in up Trend but
[03:30] pullback and that one candle pullback might be a downtrend on a 5-minute chart so we have to understand that so that's the first thing we need to understand so the first thing is 5 minute is for direction now how I look at the
[03:44] direction is very simple let's go to the Chart so right here okay all I'm looking for is a simple Trend and the way you can identify that right is we're looking for higher highs which is this right the Market's going higher and higher lows
[03:57] right here and basically the same thing thing if the Market's going down right thing if the Market's going down right higher lows lower lows I'm sorry and you know from there so that's what we're looking for guys right when we the
[04:09] market is going up or down now what I like to do is I like to plot the trend line just to basically have a good direction um you can also plot a maybe 20 moving average or a 50 moving average but pretty much if the market is
[04:23] still intact in my opinion the trend is up same thing if the Market's going down if the Market is respecting that trend line then guess what we have a downtrend so that's pretty much what I'm looking at now you also have to look at reversal
[04:38] patterns so let me show you that real quick so let me just erase these real that we're going to talk about today is called a head and shoulders and honestly this is pretty much uh one of my favorite reversal patterns so we looking
[04:51] for the market to go right here do this right here right and basically something like this so overall we looking for for support and resistance right now resistance and support pretty much you're looking for areas where the
[05:06] market sold off right or if would bounce we looking for areas where the market reacted to that right and once it gets to those levels again there a off again so I'm going to show you guys some examples so it makes sense but
[05:20] have the left shoulder right and then we have the right shoulder now the right shoulder right and this is where we can actually take a trade again I'm going show you guys some examples so everything is going to make sense now
[05:34] that's just the levels now when it reached to those levels we want to look for some type of Confirmation and what I look for guys is pretty much candlesticks that I look for okay so these are the candlesticks that I look
[05:47] for guys it's very simple once it gets to a level okay we're looking for some type of bullish reaction if the market is going up right so we have a nice tail right here and again a nice rejection right here and a nice uh solid so these
[06:02] are going to be like solid bars pretty much closing right at his lows or highs it comes to the market and I'm again I'm going to show you guys some real examples so let's actually go to that right now okay guys so right here we
[06:16] have a clear uptrend remember I told you guys before okay we really want to go with the trend okay so if the market is going higher making higher highs right we want to go with the trend so overall this day the market was basically making
[06:32] higher lows higher highs right so let me zoom in so you guys can see so overall um we have a swing low right here right now I'm going to clear all this out it comes to the market right when you dealing with these Peaks right here
[06:47] which are called swing highs and swing lows these can actually turn into support and resistance so this can be a demand area too so I'm going to explain that right now so when we have aggressive buying to the upside side and
[06:59] it comes back to this area right here this could be a demand area Okay a place where we can buy the market right so we have to have number one the direction and number two a level for the market to come back so we can actually take a
[07:13] trade so it can be at a demand level or it could be at a support or resistance okay so sometimes it doesn't really come back sometimes it will go all the way and we can actually take a trade right here and I'm going to clear this out so
[07:27] you can see exactly what I'm talking about so right here we have a swing low and the market is bullish so I'm only looking to buy the market right and notice how it basically uh found support right at that swing low multiple times
[07:40] so I decided to take a trade and I went for a quick pretty much two to one so let me show you guys um the live recording real quick so right here you see that I'm in the market and I'm pretty much waiting for my 2 to one um
[07:55] because overall again the market is in a bullish Trend and it's hitting that support line so I'm looking to get in so I got in and I'm just looking for my you guys can see what happened next all right so right here you see the market
[08:08] is going to my target profit right there boom I got out if you look to the left boom I got out if you look to the left I'm up $ going to do is I'm going to show you guys some more examples okay so you can
[08:23] talking about so right here guys right the market is what doing higher highs and basically I'm looking to buy the market right so let me zoom in for you market right so let me zoom in for you guys right so let me erase this and now
[08:38] where do we want to buy remember we have support and resistance and we have supply and demand those are the two key levels that you want to focus on okay so this is a nice demand level right here and we do have support right here so
[08:50] overall this is a nice level right here now notice how it hit this level and reject multiple times remember I told you guys I'm looking for that nice what we have we have two of them right here okay so I went long for a nice
[09:04] quick pop to the upside and I was done so this is a good example of me looking at the trade looking at the direction waiting for it to come back to a key level looking for a reaction at that key level right I'm just not getting in just
[09:17] looking for some type of reaction and then I'm getting in so let me show you here's the reversal pattern that we talked about before okay The Head and shoulder right here the right shoulder right here now we notice how we have a
[09:31] nice double test and we have a bearish bar right here I went short and I got a nice I would say almost 3 to one out of this and I was done for the day okay so that was my trade and pretty much we was looking at a key level it was a reversal
[09:47] day right and I'm looking to get in um you know right at that reversal when it's at that key level so let me show you guys some more examples all right so um it was a nice reversal trade we was at support okay it was bouncing off the
[10:03] support right here and also we have this left shoulder right here so overall uh to me you know I was seeing a decent reversal pattern right so notice how we have that head this is the inverse right so this is the same head and shoulders
[10:16] but it's flipped upside down so right here we have a key level right here which is support um and it's bouncing off that support right here so to me um when it was bouncing off that support and honestly I wanted to to come back
[10:29] down here cuz we had a nice demand level but you know didn't go to that demand level it is what it is it was holding support right here it was creating some type of wedge so to me that was good enough I was in the market and boom I
[10:44] took this long okay for a quick scalp right and if you look at my p&l for that day I made $3,345 50 okay so that was a nice quick
[10:56] scalp boom done for the day and um you know just looking at reversals right looking at the direction so today was a nice reversal day where you know the market was um coming at that it was coming off support giving us that left
[11:11] shoulder support and I just took that nice um breakout so let me show you guys another example so overall this trade right here very clean um we was making right here very clean um we was making you know low lows right and we are at a
[11:25] key level which is Supply okay so we notice that we have have Supply right here again Supply is basically aggressive selling demand is aggressive buying so when it went to that Supply Zone what do we see we see a nice
[11:39] reaction so we have a nice reaction right it went to that Supply Zone notice how we have boom two reactions right here that's where I went short right here right and I was looking for nice two to one okay on this trade and I was
[11:52] done so that's what I'm looking for every single day right I'm really focusing on the 5minute chart right A lot of people focus on multiple time frames again nothing wrong with that it's usually good if you're looking at
[12:04] say you're looking at the stock market we talking about you looking at thousands of stocks so you can break it down like that or if you're swing trading right and maybe see maybe looking at the forest market and you
[12:17] at and you can say all right all the time frames are lining up boom but for a day trader like me that's only trading the indices right it's very hard to actually have everything Lin up every single day so I'm focusing on the F
[12:31] minute chart you know for everything for the direction entries everything so um try it out right back test this you're going to see that you know once you understand um the 5minute chart and only trade if it's a clear picture you can
[12:45] only looking at the five-minute chart you don't have to have you know so many charts line up at the same time so that's all I have for you guys today um you know just take notes back test enjoy trust me this works um just make sure
[12:59] that you you know do the necessary homework necessary back testing and go button hit that subscribe button if you want to learn more check out the program actually have a sale going on so check that out and if you have any questions
[13:14] all you guys' questions thanks a lot for your time and please have a great day