Trading Strategy: BOS, CHoCH & Fibonacci — Step-by-Step Guide & Transcript

[00:02] winning. It is actually not. In trading you have to work on two things. One is your entry and the second thing is your reward. If you fix these two things, [music] improves. Now, we're going to get to charts. My name is Jidou Manor

[00:18] and I help aspiring traders hit their first $10,000 [music] trading. If that you want to subscribe and let's get to the charts. This is the

[00:30] S&P 500 and we are on the 1-hour time frame. Let me take this to the 4-hour time frame and make it make some sense. So, if you look at this, we've been having the charts from here trending upwards.

[00:45] So, we have this [music] movement, upward trend, went up and it came down. Now, you might also consider this, but if you look at if I put a Fibonacci from here to here, to this point, you will see that this

[00:58] didn't hit the 62 levels. So, I'm not going to consider this. Now, what I will have to consider is this particular one. So, from here we made another upward movement and we then broke down here. This becomes my change of character.

[01:13] Let me clean this up. So, the most important part we're looking at is see It is break of structure. Then this one down. This is the low that

[01:25] led to this break of structure. This one is the change of character. Now, from here what I was working towards is this region >> for entry. To do that, I simply pick my Fibonacci from this top

[01:41] and pull it all the way down. From here to here is my golden zone, okay? This is the region where I start to look for entries. To look for entries, I'm going to go down to the 5-minute time frame.

[01:56] frame and go to the 5-minute time frame to look for entries. And I'm going to play this forward. So, if you look at this really, I will call this this is the structure that we have to break to confirm this as a change of character on

[02:11] this time frame. This ones [music] are really not significant. Let's play this really not significant. Let's play this forward. structure here. It means that this is where I want

[02:25] before I can call this a change of character. Let's continue. structure here. Then this is the low

[02:40] that led to that break of structure, this particular low. So, low this low broken. This again is my break of structure. This again is my break of structure. And this is internal break of structure.

[02:57] 1-hour time frame, this is my low. This is where my target is going to be. is where my target is going to be. So, now since we have broken structure properly here, this is where I'm going to enter this

[03:11] trade from. I'm going to go ahead and take this short position to um um stop loss at the bottom and we're um stop loss at the bottom and we're going to go all the way

[03:25] This is giving a massive risk-reward ratio of 6.34. Now, what I like to do is you can see this is the candle that broke structure. Yeah, here is is a good place to take [music] this trade from. Stop loss at

[03:40] >> So, at this point we have a losing trade. concentrate on the losing trade. Just concentrate on doing the right thing. what do we have [music] again? This then becomes my break of structure

[03:54] here. It's likely broken because of this actually liquidity sweep. Then here, this point below >> becomes my change of character.

[04:10] Internal change of character. Okay? So, what do I do from here? I can actually take my trade right from this point. particular place where I had the break of structure.

[04:28] This bottom here. Okay? And if you look at this, it gives me a risk-reward ratio of 3.4. Now, what I want to like to do is actually take the 50% take it from the 50% line. But it's also

[04:43] particular point, okay? Because you may some trades if you're actually looking for that 50% line. But sometimes I like to take this from the 50% line. So, this >> [music] >> So, let's play this.

[04:57] >> So, let's play this. And take it to the 1-hour to make it So, we have a massive drop down from this particular level. this particular level. >> [music]

[05:13] hit take profit at this particular level. Now, from the start to the finish of this trade, this took how many days from this point to this point because this where the trade actually hit take profit.

[05:26] This trade took about 19 days. This is a lot of time, but >> sometimes your trade can be like this especially if you're swing trading this particular way. Now, we're going to continue.

[05:39] So, on the 15 minutes this clearly shows me that this is my break of structure me that this is my break of structure from this particular point. Now, from here I could pull another Fibonacci from this particular point

[05:51] Fibonacci from this particular point here, this top, the top of this BOS to the bottom of the BOS. And my golden zone is going to be here, which is actually valid. But if you look at this structure, okay?

[06:05] You can see here that we had an internal break of structure here, which is this one. Okay? And this one was broken again >> which is another one. So, because of that I usually when I see this,

[06:21] I [music] prefer to do this, take my trade from this point to low and >> [music] >> So, this is what I'm going to use for this trade here. So, once we are here, I'm going to go back to the 5-minute

[06:34] time frame to see if I can get a break of structure. Now, you might you might want to consider this as we have a break of structure this as we have a break of structure above here.

[06:49] here and use this. But this But this isn't really that significant to me. As significant to me. This This is what is

[07:01] more significant to me. So, if we have a high from here this way, this is more significant for me to consider a change of character rather. consider a change of character rather. So, let's just play this forward.

[07:19] break of structure I was looking for. >> [music] particular point. Okay, so this is the low I want to be

[07:31] >> [music] >> But let's keep on playing. Now, here when I have another break of structure at this particular point. And [music] because of that,

[07:45] this is the low that I want to consider this time. because it took it took some time for it to happen.

[07:59] And [music] this becomes the new low to consider as change of character. So, now we have the break here. So, there are two things I can do. You see there are two things I can do. You see this long candle, I can one take my

[08:12] place where I had the break of structure, um take my stop loss at the top. And if you look at this bottom, this is the last bottom external bottom we have

[08:25] >> from this point. Okay? So, I want to take my Okay? So, I want to take my take here below of my take profit. Now, what I can do is to actually extend my entry to this candle, but once I have at

[08:41] least a 3R from this from this particular point, I'm good to go from particular point, I'm good to go from that point. Let's continue playing. would have gotten a much better entry, but I'm still good because sometimes you

[08:56] can do that and just totally miss the whole trade.

[09:10] ended up hitting our take profit just at this point. >> [music] >> And it went further to open here the >> [music] >> and we are done with that. So, once this

[09:23] happened, what can we do? One is to do the same thing on the higher time frame. You want to take your Fibonacci tool from here take your Fibonacci tool from here to the bottom of this.

[09:37] >> [music] >> Then you want to consider here as your area of interest. [music] Now, you might say why didn't I consider this particular one? Since you have a break here, this break actually did happen

[09:50] around here by this um candle that wick here. And this this looks like a lot of liquidity to me. So, I'm still going to maintain this top as my area of interest. So, I'm going to go ahead and wait for this to

[10:04] And I'm still on the 5-minute timeframe. >> [music] >> 1-hour timeframe. Now, if you look at this, you will see that the chart even pulled lower to this point. So, my area

[10:16] of interest has some kind of expansion to this particular point. >> [music] >> So, I'm going to go ahead and play.

[10:28] this is actually a bunch of liquidity line here. particular point? So, what are we looking for here? We're looking for a change of character from this point. This is the last low we can see here.

[10:43] >> And this is a top. Okay, this is a breaker structure of this particular So, once we break it below this point, it now becomes a change of character. it now becomes a change of character. We're going to keep going.

[10:58] here now becomes what? Here becomes back. This bottom is a bottom that needs to be broken. >> [music]

[11:18] >> [music] >> becomes what we need to break to take this trade. Again, I want to go lower and mark that this is the area we're

[11:30] and mark that this is the area we're looking to take profit from. finally have a break. So, what I'm going to do is simply again pull out my short

[11:43] point, put my stop loss here. Then my take profit goes to this low. Now, if you look at here, you will see that my my risk-reward ratio is just

[11:56] 2.0. I will not take it. I I only take trade when it's when they are at least trade when it's when they are at least 3.0. So, what I would do is one to try out this midpoint. This is the last leg. And the midpoint is currently where the

[12:09] price is. So, what I would do is take my entry to this point, >> um hoping that price gets here. This gives me a risk-reward ratio of 2.61, which is still not enough for me, but it's okay. It's what I can take.

[12:24] But, you can see from our previous trade, price did come down further. So, what I like to do is do this. Take from here to this bottom. Okay? Then I'm

[12:36] >> [music] >> low to this particular minus 0.27. If you want to use my Fibonacci, I'm just going to click on this. So, this is just pause this video and [music] you can simply copy it. Now, I cannot

[12:51] Okay? I have a a risk-reward ratio of 3.77. Now, even if I take it from this particular point, okay, I still have a

[13:04] very good risk-reward ratio. And let's see how this plays out. >> [music] >> Okay, we have it tapping.

[13:23] >> so at least we can move more much faster than this. So, here again, we hit our take [music] profit at this particular level. But, the whole of this trade from level. But, the whole of this trade from the start to the finish of this trade is

[13:38] how many days? It's right here. And we ended at this take profit level days. Now, let's calculate what we have here. This first one was a losing trade, >> [music] >> so it is minus one.

[13:53] The second one is a winning trade. I will have 5.24. [music] will have 5.24. [music] So, this is now plus 5.24.

[14:06] And the third one you see here is 3.77. So, let's calculate the possibility we have here. So, total P&L is minus one plus 5. 24

[14:29] This equals 12.56. So, let's say So, let's say um after fees, we're on about 12R. reward in taking this trade. As you can see, because I was concentrating on

[14:42] entry, we were able to actually get better win particular whole sequence. Now, you might say this took a lot of time. Okay, this took 40 days. This is one asset.

[14:58] This is one asset. Let's say I was looking at say um three assets. Okay? So, I took four trades 40 days. So, if I was looking at three assets,

[15:13] and let's say I do the same thing. So, that would be actually 12 trades in 40 days, which is approximately eight trades in [music] 30 days. Now, this is in line with how I take trades. If you go to my Discord, I talk about

[15:29] this. I take like zero to three trades a [music] week. So, if you're having um eight trades a month, it's actually a very good way to trade. It's not going to take all your time. Have your entry and just simply wait

[15:44] patiently for the trade to play out. If it loses, fine. If it doesn't lose, you it loses, fine. If it doesn't lose, you are good. Now, a 12R on a funded account, and you're risking say 1% of a $100,000

[15:59] and you're risking say 1% of a $100,000 funded account, that is already $12,000. If you're risking 0.5%, that is 6K. that is 6K. If you're risking 0.5%

[16:12] on a $200,000 funded account, that is also 12K. So, if you can maintain this consistency and find this edge, and [music] you simply just look for a higher funded account, we take very small risk. You can

[16:26] actually do this. So, in trading, it's not just about winning. It involves a lot of patience. It involves you focusing on your reward and focusing on your entry. If you do this, trading

[16:42] becomes really really easy. You guys know that I'm building an app called Copy Me, where you can actually copy my trades and the trades of vetted traders. Just by connecting your account and just choosing your risk amount. [music]

[16:58] you want to be part of that, you can join the waitlist right now by using the link in the description to get notified when it is launched. So, whatever trade I take like this, it's just be automatically um implemented or also

[17:12] copied in your account. So, that's it. I will see you guys in the next video.