Simple 4-Line Trading Strategy — Step-by-Step Guide & Transcript

[00:02] successful trader you will ever meet. [laughter] they're performing brain surgery inside a running

[00:14] blender, I'm consistently and confidently making trades that look like this , like this, and even like this. And all thanks to one simple strategy called the stealth reversal. This is the easiest and fastest way for a trader of

[00:28] any skill level, with any deposit, to move forward. Because to master this strategy, you only need to be able to work with one time frame, one candle, and devote only 15 minutes a day to it. There

[00:42] will be six steps in total. And the thing is that without the sixth, the very last one, the first five don’t make any sense at all. And all because knowing a strategy and being able to use it are completely different things. In step six, I'll give you an algorithm

[00:55] that will allow you to apply all this knowledge today without risking a single dollar. So, step one. Setting up a schedule. And it will take less than 30 seconds. And this is not an exaggeration. Open Trading View and place a

[01:10] on it. And not because it doesn’t work on other assets, but because it is the most liquid asset in crypto. Next is the timeframe. 15 minutes. Just one. Not three and not even two. That's all. Not a single indicator, not a single

[01:24] moving average, not a single Fibonacci grid. Every indicator you put on your chart is another opinion, another voice that can tell you: "Buy." When the chart says: "Sell". Remove the unnecessary and there are

[01:37] no more excuses. There is only price. One chart, one timeframe, zero indicators. Step one is closed. Step number two, four boundaries. Here we need four lines. And this is the foundation of the strategy, so it is described in as

[01:51] much detail as possible. We will have four lines in total. Two on top, two on the bottom, and they will split into two pairs. The first pair is the range boundaries. Look at the chart and mark yesterday. Inside it, find the highest

[02:05] point the price reached and the lowest. And just with the eyes. Here is the top tip of the highest candle, here is the bottom tip of the lowest candle. Take a horizontal line and place it exactly on this maximum. The second one is at least. No

[02:22] need to worry about accuracy down to the cent, just aim with your eyes. And here you have the limit of the range. This is the distance that the price traveled yesterday. The whole of yesterday compressed into literally two lines. The second pair.

[02:36] Local minimum and maximum. And here is what beginners usually don’t do, and it’s a big mistake. A question for you. What is usually found beyond yesterday's border? To find out, scroll the chart to the left and look for the nearest point where the price was higher than

[02:51] yesterday's maximum. I emphasize the closest, not the highest in history. Found it? And again you put a line on it. You do exactly the same thing at the bottom. Scroll left and look for the nearest point where the price was below yesterday's

[03:05] minimum. Line. And now you have four lines on your chart. From bottom to top. local minimum, lower bound of the range, upper bound of the range and local maximum. And pay attention to one more thing that will definitely be useful to you.

[03:20] The lines in each pair are usually close to each other, almost touching. But between the top pair and the bottom pair there is a huge empty space. And this is not an accident. And in a minute I'll explain why this happens and how the

[03:34] whole strategy is built on it. The marking here takes less than a minute. Once a day, in the morning I simply placed four lines and that's it. And then throughout the day I don’t touch them at all. That's it, step two is closed. And everything I show you in

[03:48] this video is done by every trader every day live in our trading chat. Moreover, we have three different traders, and each has their own experience, their own approach, and a different vision. And based on this, throughout the day they publish their entry, stop and

[04:03] take trades. And an important point is that they publish the transactions before they are completed, not after. And once a week we call each other and analyze the participants' trades, determining where the entry was incorrect, where the hand trembled, and where the person bought in the middle of the range

[04:16] or made any other mistakes. I think you can see that any strategy in general can be learned in 15 minutes. This is actually what we are doing now. But it’s easier to establish discipline when there are those around you who have been observing it for

[04:28] years. If you want to address all your questions in one place—training, specific signals, calls, communication— we have a trading chat for that. I left the link in the description or via this QR code. Well, now let's

[04:42] get back to the main thing. What do these four lines mean and how to make money on them. Step three. Two territories. We drew the lines together . Now let's figure out what they mean and how to trade them. Let's say here is your

[04:54] local maximum, here is the upper limit of the range, here is the lower limit of the range, and here is the local minimum. So, the first rule is the most important and at the same time the simplest. I buy and sell only if the price is on one of these lines.

[05:10] Only there. At the beginning I said that there are almost no details here. And here they all are. One timeframe, one chart, four lines. We buy and sell only on lines. We do n't touch everything between them. And now the question: which lines are for buying

[05:25] and which for selling? The top two are sell lines. There are sellers there, and this is their strongest point. Every time the price reached this mark, only sellers met it. And until these sellers leave,

[05:39] the price will not rise higher, it will just stay there. The two bottom lines are for buying. Here it's the opposite story. At the bottom is the buyers' strongest side. The market literally seems to have muscle memory at these levels . And here's what we're

[05:53] going to do: sell on the top two lines and buy on the bottom two. And now what happens almost every day. And that's why this strategy works. For some time, the price rushes between the boundaries of the range, pokes

[06:07] up, pokes down, tests the strength of both sellers and buyers, and then breaks one of these boundaries. And then it's almost always the same. The lower boundary of the range was broken, and the price immediately went to the local minimum. The

[06:21] upper limit of the range was broken, the price immediately went to the local maximum. And this is what we catch. We either sell at the upper limit of the range and drive the price down to a local minimum, or we buy at a local minimum or at the

[06:35] lower limit of the range and drive the price up to the upper limit of the range or to a local maximum. Now let me show you exactly what the entrance looks like. Step number four. Three candles. Our strategy is simple, so the entry should be

[06:49] simple too. Only three candles. The frame looks like this. Candle one. We wait for a strong, large candle with a large body for 15 minutes. They look something like this. One side pushed, covered the distance and dragged the price to where

[07:05] we needed it. Candle two. And now she is the most important of all. Next 15 minutes. She does two things. The first is that it shows what actually happened on the first candle. Was there a real move there or not? And secondly, more importantly, it is this that

[07:21] gives meaning to the third candle. Therefore, the third candle is our entry. In fact, this is everything we waited for in the first two. The frame itself is super simple, but the most important thing in it is not the candles themselves. The most important thing is how they

[07:37] look, and most importantly, where they appear. And that's why I started the video with four lines, and not with candles. Well, let's get back to the chart. I already have two lines on top and two on the bottom. And let me remind you of the rules. We sell

[07:51] only here upstairs, we buy only here downstairs. But in all this, in the middle, we do nothing at all. And here are our three candles. All three are already on the chart, I’ll go through them one by one. The first candle, large, red, flies down.

[08:07] Look where she came. It broke through the lower boundary of the range, broke through the local minimum and went even lower with this long shadow. And here is the first thing you should see. It went below the line but closed within the range. The body

[08:22] remained above, and the shadow below. This is not a fall. These sellers reached the very bottom and were bought out right on our territory. The second candle is green. Here

[08:34] is the confirmation. First candle 15 minutes. The second one is also 15, that is, for half an hour in a row they tried to push the price lower and failed. And to check, you can open the minute chart and you will see a bunch of pokes and shadows at this level. At

[08:49] fifteen minutes everything is the same, only clean and without trash. Candle three. And here is our entrance. And the rule is super simple. One candle must pass over the other. Once this candle has passed above the maximum of the green one, we

[09:04] buy no sooner. Now look at the whole picture, because that is why I call this entrance simply beautiful. We bought at the very bottom, in the buyers' territory, which had just been completed before our eyes

[09:16] . And below us there is a crowd that did not pay this price for half an hour. And above us, the top line awaits us, and between us there is an open field. The bottom is literally just a stone's throw away , and it's a long way to the goal. And the point is that we risk a small

[09:30] distance for the sake of a large one. This is the whole strategy in one picture. And all you need to remember is that you came, stood firm, and went back. Step came, stood firm, and went back. Step five - stop, take and patience. So,

[09:43] we already have an entrance. Now there are two questions that the majority simply answers. Where to get out if it doesn’t work out, and where to get out if it works out? Stop loss. The rule here is super simple. We put a stop immediately beyond the border. We bought at the lower

[09:56] level, and the stop goes below it. Why exactly there? Your stop is hiding behind the buyers' backs. Between your stop and the market stands the entire crowd that held this line for half an hour . And in order to knock you out, the market will first have to demolish them. It's not that it's

[10:10] impossible, but it's expensive and time-consuming. And here is the main idea. If you're constantly getting stopped out, it's probably not your foot that's the problem. The thing is that you entered without a border. A stop inside the range does not protect against anything

[10:24] because there is no one behind it. Next is take profit. You bought on the buyers' territory. Where will the price go next? through an open field to the sellers' territory. This means that the target is the opposite boundary, the closer one of the

[10:37] pair. And note, you don’t have to guess, you don’t have to calculate percentages. The goal was drawn on the chart in the morning, when you put these lines, you knew where you were going before you got behind the wheel. And lastly, perhaps the most important thing - patience. You're in and

[10:50] now it can get really boring. In my trades, the price sometimes reaches the target in an hour, and sometimes it stands still for half a day, bumps into the border, twitches up and down, and it may seem to you that nothing is working. But in fact, your

[11:04] task is to look not at the floating minus, but at the line. The line hasn't been broken through, which means everything is going according to plan. Let me make one thing clear right away, so that there are no illusions. This is not financial advice and this is not a strategy that takes literally every trade. Some deals

[11:17] end up in the red, and this is part of the deal . Buyers at the border are sometimes actually knocked down. And then I'll show you how to see this before you even invest money there. So, step five is closed. You have an entry, stop and target.

[11:32] Step number six. How can you apply all this without losing a dollar? And yes, this is exactly five have absolutely no meaning. Right now, you have the entire strategy in your head. And this is precisely the most dangerous place, where people

[11:47] make mistakes. And many people start thinking: “Everything is clear, I’ll go and try it.” You open an exchange and open trades with real money. Everything is like for adults. And then everything will be as usual: two profitable trades, one losing one, then panic,

[12:00] recoupment, and in the end you lose your entire deposit. Therefore, first you need to get your hand in, and you can do this completely free of charge. And here are three ways that I started with. The first point is to scroll through the history. Enable the

[12:13] market simulator function, select a random point on the chart, mark the day boundaries, and then the range boundaries and local minimum and maximum. Click Play and see how the market behaves. Let me warn you right away, the desired setup for one

[12:28] asset may not appear for weeks. So take 5-10 different assets and scroll through them every day, literally a couple of evenings, and you will have a huge amount of you months to accumulate in real trading . The second point is to trade, but

[12:43] without money. There is also so-called Paper Trading in Trading View. This is, in fact, an account with virtual money on the live market. The price is real, the movements are real, the money is fake. And connect in literally 5 seconds.

[12:57] Click here to connect to the broker. Choose Paper Trading. Click connect and voila, you have an account. Then you trade directly from the chart. Buy button, sell button, stop and target with the mouse directly on the chart.

[13:12] Do the same as in the first point, but in a live market. And here something appears that is not in history. You don't know how it will really end. You'll sit and watch the price poke at that line and you'll

[13:24] want to get out early. And this is precisely the most valuable part of the training. Moreover, you pay for it not with money, but simply with time. By the way, it is at this stage that you can already open an account on a real exchange. And not in order to

[13:38] you are ready, you should already understand how the entire interface works, and not just stupidly poke around with real money. That's why the links I use are in the description. There are also some nice bonuses

[13:51] for registration. While you're learning, you can use the demo trading feature on the BYBIT exchange. And the third point is the diary. This is the most boring point, but the most important. Any transaction, even a virtual one, must be in the table. What should be

[14:05] written down? At what line did you enter, what did the three candles look like, where was the stop, where was the target, and how did it all end. Why do all this? After 20 transactions, the table will show you things that you will never know about yourself. For some people, all the downsides are entries without a

[14:21] second candle. For some people, all the minuses are within the range. Even without a table, you only remember the last transaction and your mood. And with the table you have facts. And here is the criterion by which you will understand that it’s time. It's not that

[14:34] I think I'm ready, but it should be like this : 20 trades in the table, the strategy is in the black, and you haven't violated your own rule of forgiveness even once. Then you go to a real account and start with the minimum volume that you don’t mind at all.

[14:47] volume that you don’t mind at all. Typically it is 1-2% of the total deposit. I left the template for this table and instructions on how to use it in a separate post on my Telegram channel. Link in the description or via this QR code. And now you have mastered the sixth point

[15:01] completely. Scroll through history, trade without money, enter a diary.