AMD, FVG, 50% Retrace — Step-by-Step Guide & Transcript

[00:02] This is a guy named Trader Kane. In a single month, he turned just $130,000 into $1.4 million trading stocks in a month. 1.4 million in a month. That's insane. Now, I don't know about you, but I would also like 1.4 million in a

[00:16] month. But I was a little skeptical. Maybe he just invested into some memecoin, got lucky, and that's that. Or maybe he did a yolo bet on call options and again got lucky. or maybe, just maybe, he was on to something. So, in

[00:30] good old Trading Lab fashion, I did some digging. I scavenged the internet for days trying to find out who this guy is and how he did it. I read articles, watched videos, and read anything and everything I could about him. Then, I

[00:45] stumbled upon this, his strategy. I replicated his exact strategy on my chart. And honestly, guys, this has been one of the first strategies in a long time where I'm actually blown away by the results. After seeing time and time

[00:58] again of my take profit being hit, I instantly knew this guy was on to something. Now, this strategy probably doesn't make sense to you right now. But in about 7 minutes, it will. It's a little complicated at first, but pretty

[01:12] easy to understand when you get the hang of it. You see, Kane's approach wasn't statistical, programmed in the market's automatic behavior, wrapped in a pretty little bow of real risk management that most traders overlook. Kane's strategy

[01:27] isn't about hitting the game-ending home run. It's about getting the easy base hits or the lowhanging fruit. >> You're really going to butt [ __ ] I know, man. I don't want to do this. >> It's honestly, I don't know how to say

[01:40] this, but genius. But that leaves us to the fun part. What actually is his strategy? Price is falling. When it ultimately reverses, it will likely reverse into 50% of this original range. Don't believe me? Go onto your chart

[01:55] right now. Find an uptrend or a downtrend. Measure from the high to the low of that trend. And look how often price reverses at that 50% mark. It goes down, reverses, comes to the 50% mark, and it does it again here, here, and

[02:10] here. This happens pretty often. But once this happens, price then should trade into 50% of this second range. This is the key right here. All he wants to do is short and trade 50% of this range here. If you don't know, instead

[02:25] of making money while the chart goes up, shorting is when you make money as the price goes down. Now, the thinking behind this is simple. The overall trend is trading downwards. Meaning, you're trading with the momentum of the

[02:37] long-term bias. And with that information in mind, there are two very likely scenarios that could happen. If price trades down here, great. The chart continued its long-term momentum and you just made some really good money on your

[02:49] short, like really good money. The other scenario, sure, maybe it wants to go against our trade and head upwards in a reversal. But since this overall chart is still in a downtrend, it is very, very likely it will correct first by

[03:03] going down to 50% of this range first where you initially take profit, then it heads upwards from here. So again, this technically wouldn't be a losing trade direction of our trade. All you need to target is this move right here. You

[03:19] here because it's risky. You don't know where the bottom will be. And on top of that, you don't know at what price will reverse. So, this trade is pretty risky. You also don't need to trade this long right here either because this move is

[03:34] going against the overall trend, which in some cases it does happen, but it's not very likely. All you need to target is this small probable move. So, you might be thinking, how do you find this small probable move? Well, actually this

[03:48] trading concept has been going around since the start of the financial markets themselves. That is because it involves human behavior. To find the creator of this concept, we have to go all the way back to the early 1900s where the stock

[04:01] market was first getting started. His name was Richard Wyoff. Now, he's a cool dude and all, but his name isn't very important. What is important is that he found an odd similarity with price movements and human behavior which

[04:15] birthed the strategy called AMD. The concept itself is pretty simple. You have accumulation where price accumulates with consolidating sideways price movement. You will then eventually have a break of this accumulation in

[04:27] either direction. This point here is the most important and where the advantage of our strategy takes place. You see, once price breaks this accumulation, there will now be retail traders entering long trades. As price breaks

[04:40] these highs, as they think this is the start of a nice, beautiful uptrend. What happens when that reality isn't real, and the trade goes against them, they sell their positions. So, when price falls here, it'll be hitting all the

[04:53] stop losses of people just entering this trade for a breakout opportunity, making them sell all of their position, adding fuel to the downwards momentum, which the 1% take a short trade here and make all the profits riding this momentum.

[05:06] You see, the market needs fuel to move. Without fuel, the market would never move. That fuel is liquidity. And liquidity is just trader stop losses being hit to fuel the move even more. So, we have accumulation, we have

[05:19] manipulation, then we have distribution, which is AMD. Our goal with this strategy is to take advantage of this manipulation area right here. But there's one key thing. We will only look to enter this trade from 9:30 a.m. to

[05:33] 11:30 a.m. Eastern Standard Time. Now, you might be thinking, why is that circles back to our first point. At around 10:00 a.m., the market will likely manipulate in either direction. as at 9:00 a.m. the market isn't open

[05:47] yet and is usually accumulating before the market opens. If this happens, once it manipulates, on average it distributes back into consolidation where it originally began. But you also might be thinking, just because price

[06:01] breaks a range, that doesn't necessarily mean that price will always manipulate in the other direction. Sometimes it just keeps going up. So if price doesn't manipulate 100% of the time, how can we say the strategy actually even works?

[06:14] That is why we use the multi-timeframe confirmation. Let me explain. Go to I'll leave a link in my description. First, go to the daily time frame. At 9:00 a.m. before the market opens, you're going to mark the low and the

[06:28] high of the daily candle. These are very probable points of potential liquidity and where manipulation is most likely to happen. Ideally, what we want to see is price break these highs or lows between 9:30 to 11:30 a.m. Once this happens, we

[06:43] move to the 4hour time frame. And on the 4hour time frame, you should see something similar to this, where price is moving sideways, accumulating before the market opens. At the 10:00 a.m. mark, price should break this range in

[06:57] either direction. You would then move to the 1 hour time frame for your entry to confirm the manipulation is in full effect. Once you get the confirmation of the manipulation, you enter the trade to reap the rewards of the distribution and

[07:11] make all that money, honey. >> This is just the very basics of his strategy. But we ran into a problem. None of this is useful if you don't have the correct risk management paired with it. Even though we have all these

[07:23] parameters, all of this fails without the correct risk management. You see, if we have our accumulation and manipulation and are entering somewhere around here, all we care about is the halfway point of the manipulation move.

[07:36] We are just targeting 50% of this move. Now, sure, price could continue to move downwards. And you may say, oh, we missed out on so much potential money by exiting so early. But we don't really care if price distributes. We are just

[07:50] trading the manipulation. The reasoning behind that is if we do continue up, we don't want to be caught in this. This is the type of move that could potentially kill a portfolio. So, what you do is set your takerit at this 50% range. Wait for

[08:04] price to hit this mark. You sell 50% of your position, then move your stop-loss right below break even. That way, you are taking this trade completely risk-free. Now, no matter what happens, even if price comes back up and goes

[08:18] against your trade, you basically break even. you basically just sell the other 50% of your position and just move on to the next trade without any risk at all. potentially receiving thousands of dollars without risking anything. If you

[08:33] starting to realize the power of this strategy. If it continues to go down and follows the trend, you sell more of your position at the lows of this range and ride this downwards momentum more, grabbing all this extreme profit without

[08:48] any risk. Now, I'm going to be completely honest. You see, this is a riskier strategy because you are counting on manipulation to actually occur. But that's why we take profits at break even because it mitigates that

[09:00] risk. You can do this exact same strategy with long trades. Just flip it around. You have price moving upwards, it comes down, does a pullback to this 50% mark. All we are looking to trade is this little upwards move to this 50%

[09:14] once you get used to the framework, it's pretty easy. And if you go on your chart and just simply look for this setup, you will be blown away how often price comes to this 50% mark like it did here, here, here, and here. I'm telling you guys, it

[09:30] is astounding how often this happens. But this strategy isn't perfect. It does have its cons. The first con is you need patience. This setup won't happen every single morning. There will be mornings where you have to sit on your hands and

[09:43] not take a single trade, which a lot of people don't have the patience and would end up entering into a trade that doesn't fit all the parameters. The only patient enough to wait for the setup. The second con is the biggest con, and

[09:57] that is it's somewhat of a risky strategy because in the end, you are looking for a reversal and manipulation to occur. And as we already know, when the market runs, it really runs. And when you're looking for a reversal in a

[10:11] very bullish market, it's pretty risky. So, we need a way to mitigate this risk as much as possible. That's why we add the break even tactic because if this strategy is performed correctly, you will have a lot of break even trades and

[10:24] reason a lot of break even trades occur is because we are trying to mitigate the second con, which is a risk. You see, there are two options when trading. You either need to be right or right out. And when you really sit down and think

[10:37] about it, it really makes a lot of sense. So, we know the general setup of what we're looking for, but how do we know where to actually enter the trade? Okay, so we have three candles like this. Price jumped up an insane amount,

[10:49] creating a huge candle. The price moved up so quickly that it didn't actually counteract this movement, creating an imbalance in the market. Naturally, sellers will want to retest this zone. And this zone is called a fair value

[11:03] gap. You can mark a fair value gap by simply marking the candle's top wick before the big move to the candle's lower wick after the big move. This zone is the fair value gap itself. You can have a bullish fair value gap and

[11:15] bearish fair value gap. So if you have an uptrend and price creates a fair value gap up here, usually price will come down to this gap, give sellers a chance to test this price again, and usually since it's an uptrend, it'll

[11:27] continue to head upwards from this point. But there's another scenario. If price has the same setup, creates a bullish fair value gap, but this time price breaks through this fair value gap hard and creates a bearish fair value

[11:39] gap within the bullish one. This is an inverse fair value gap. If you ever see this on your chart, this is an extremely bearish signal as it's showing sellers are taking complete control. So, what you would do is wait for price to come

[11:53] back up to this inverse fair value gap, enter a short once it does, and then make a shitload of money. That is how he enters his trades. So, if you combine the 50% ranges with higher time frame accumulation, manipulation, and

[12:07] distribution, add risk management, and on top of that, add an insanely good entry model, you get an insanely profitable strategy. So, we went over the idea, we did some pretty basic explanations. Now, it's time for the fun

[12:20] part, actually trying it. First thing you want to do is go to the daily time frame. Price is falling. It then gains a little bit of strength and starts candle for today. The market hasn't

[12:32] opened yet. So, we're going to mark the low and the high of this current daily candle for our most probable points of liquidity. Also, take note how price is consolidating here, which is our accumulation zone from our AMD strategy

[12:45] we were talking about before. While all this is happening, we then grab our ruler tool on the left. We measure from the high to the low of this downwards move. And notice how price is consolidating right at our 50% mark.

[12:58] Once we see this, we then switch to the 1 hour time frame. On the 1 hour time frame, there are a lot of important things going on. First, it's now 30 minutes before the market opens. Notice how we have sideways price movement,

[13:10] which again is our accumulation. The market then opens. We then see price break the highs of the accumulation at around 10:30 Eastern Standard Time, which we can now anticipate price to manipulate here. So far so good. But

[13:24] this exact point is where a plan really starts to form. Price drops and it drops hard. But notice this. Price created a bullish fair value gap right here when it manipulated. But as it went down, it created a bearish fair value gap within

[13:38] the bullish one, which creates our inversion fair value gap, which gives us the perfect point to enter our short trade. We then wait for price to come going to set our stop loss above the

[13:50] manipulation move. Then we're going to set our takerit at 50% of this move here. Then we do the final step which is to enter the trade. Price immediately falls after hitting our inversion gap. It then proceeds to fall to our take

[14:03] profit. We then sell 50% of our position and move our stop loss to break even. We are now in this trade absolutely risk-free. So no matter what happens from this point, we don't lose any money whatsoever. We then move our takerit at

[14:18] the lows of the original move and watch what happens. Price then moves to our final take-profit and we sell the rest of our position exiting fully out of the trade. Literally textbook. Add this trick to your arsenal to any of your

[14:31] trading strategies and it'll help you get more sniper entries. Try it out. Let me know how it works for you and DM me on Instagram with your results. Thanks for watching and I'll see you guys next time.

[14:43] >> You're really going to butt [ __ ] I know, man. I don't want to do