AI Summary
This video explains a trading strategy called the quadrant technique, which uses five-minute candle intervals to determine buy or sell signals. The method involves discarding the first two candles in a quadrant and analyzing the last three to trade in the direction of the minority color. The algorithm allows up to four sequential trades with a specific money management plan to recover losses and secure profit.
Chapters
The quadrant technique divides the chart into five-minute increments, each containing five candles. The broker provides these time frames (e.g., 1-minute, 5-minute).
When a candle moves out of the quadrant, discard the first two candles and analyze the last three. The trade direction is based on the minority color among the last three candles (e.g., one green and two red means buy).
The algorithm uses a maximum of four candles in the same direction. If the first trade loses, subsequent trades continue in the same direction until a win or four attempts are exhausted.
The strategy works well when the market is moving sideways. Previous entries can be cataloged to check if the market respects them.
Capital is divided into four entries (e.g., 25, 13, 31 units) to ensure that if the first trade loses, the next trades can recover losses and yield profit, provided the payout is above 80%.
The quadrant technique is a systematic trading method for sideways markets, using minority color analysis and a four-step algorithm with proper money management to maximize profit and minimize risk.
Clickbait Check
70% Legit"The title suggests a probability application, which is delivered, but the strategy is specific to sideways markets and requires broker-provided quadrants."
Tutorial Checklist
Study Flashcards (6)
How many candles are in each quadrant?
easy
Click to reveal answer
How many candles are in each quadrant?
Five candles.
00:48
What is the first step when a candle moves out of a quadrant?
easy
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What is the first step when a candle moves out of a quadrant?
Discard the first two candles and analyze the last three.
00:48
How is the trade direction determined?
medium
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How is the trade direction determined?
Trade in favor of the minority color among the last three candles.
01:00
What is the maximum number of consecutive trades in the algorithm?
easy
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What is the maximum number of consecutive trades in the algorithm?
Four trades.
01:15
What market condition is the quadrant technique best suited for?
medium
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What market condition is the quadrant technique best suited for?
Sideways (ranging) markets.
01:42
What is the purpose of dividing capital into four entries?
hard
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What is the purpose of dividing capital into four entries?
To recover losses and secure profit if the first trade loses, provided payout is above 80%.
04:26
💡 Key Takeaways
Quadrant Analysis Rule
Core rule of the strategy: discard first two candles, analyze last three.
00:48Minority Color Trade
Unique signal: trade in direction of the minority color.
01:00Four-Trade Algorithm
Limits risk to four consecutive trades in same direction.
01:15Money Management Plan
Dividing capital into four entries ensures recovery and profit.
04:26Full Transcript
[00:03] probability application using the quadrant technique. And how does the quadrant technique work? We're going to perform operations here at the end of the
[00:15] five-minute quadrant. Where are the quadrants? The quadrants are divided into five-minute increments that the broker already provides. See the maximum time frame: one minute here. At 5:15 there's a
[00:31] vertical line, at 120 there's a vertical line, and at 5:10 there's a vertical line, 105 as well. So these are the quadrant separations. So how do we operate the quadrant? Once
[00:48] we've separated it and have 5 candles inside, we'll perform an candles inside, we'll perform an operation. When the candle moves out of the quadrant, we'll discard the first two and look at the last three.
[01:00] In this case, we have one green candle and two red candles. So the operation we're going to perform is a buy operation. What is a buy operation? We'll go in favor of the color that's in the minority. In this case, it's the
[01:15] green color. So if we take a loss on the first order here, we... The algorithm uses a maximum of four candles in the following sequence, always in the same direction as the trade. So, once again, when we move forward, we discard
[01:30] the first two candles and look at the last three. Looking at the last three, we see that the
[01:42] candle changes, we will make strategy that works well when the market is moving sideways. You can
[01:55] market is moving sideways. You can catalog the previous entries to see if the market is respecting them. So, let's move the quadrant further back. We don't have a second one yet, which is why
[02:14] always have to have the algorithm prepared in the next tab. Okay, so let's look back next tab. Okay, so let's look back here,
[02:27] five candles were discarded. We look at the first two and look at the last three. The first two and look at the last three. The we execute a winning sell trade on the first order.
[02:42] Remember that you can use the algorithm for a maximum of four candles ahead. Okay, guys, in this case, we... The first hand of the algorithm was used, the second I'll see if it will be necessary for the third because there was a reason why it doesn't
[02:58] are on the right side of the operation, we can still lose a... hey algorithm, the delay of the broker to get this
[03:12] order right, we are there and once again analyzing, we discard the last two and look at... we discard the first two and look at the last three, the color that has the lowest number, we perform a maximum of
[03:26] four operations forward now, so the hot one bought the first, so the hot one bought the first, bought the second, we are on the third, if we happen to take a loss on the third, don't worry, use the algorithm and move on to the
[03:40] fourth hand, remembering that this whole process has to be within your management, okay, whole process has to be within your management, okay, and here would be the download, on the third hand we can go to the fourth, hey,
[03:56] can really catalog, you draw the vertical lines every five minutes and analyze behind the bravo, for example, a place from here to practice, we discard the
[04:12] first two and look at the last three, in this case there are none green, so the color that has the lowest number is green, so we perform operations of Buying outside this quadrant means that if you win on the first try, the
[04:26] algorithm uses up to a maximum of four hands. So here, if we lose on the first try, we win on the second. And just to explain the security algorithms again, instead of entering with a high initial bet of, for example, R$50, I separate my capital into
[04:42] example, R$50, I separate my capital into 4 entries: 25, 13, and a maximum of 31, updating to 4 entries: 25, 13, and a maximum of 31, updating to R$50. This gives me the security that if I three more to try and win. Okay? So, whenever I go through the
[04:57] whenever I go through the algorithm process, when the payout is above 80 percent, my profit is increasingly higher. When I win the trade, my profit is greater than in any of the previous ones,
[05:11] meaning all losses are recovered and I still come out in profit, a victory. Okay, this is just part of the algorithm process, guys. So, the connection dropped, so if you have any questions, you can contact us here
[05:27] on WhatsApp, in the video comments, or in our members area.