If you're currently day trading or practising, by now you're probably familiar with using Horizontal and Fibonacci levels as a significant part of your setup.
To enhance your day trading strategy, looking at the finer details of price action would be the next step.
The examples that you see here are very expansive, while including Fibonacci they also utilise the advantages of time and volume.
A day trader that adopts Time Price Opportunity (TPO) and volume, will see through the noise that often distorts the average day trader.
Such strategies should be studied and practised before you commit to applying them.
You are strongly advised to take notes of the criteria for this strategy and if need be; revisit relevant modules such as TPO and Foot Print charts to further your understanding.
Time Stamps
2:30 – ETH/BTC Analysis (Previous Example)
5:30 – EOS/BTC Previous COTW (DO NOT TRADE THIS)
- EOS was voted as the asset that most people on the stream were interested in. Daniel then deleted everything from the chart and started from the beginning.
- EOS is ranging for an unusually long period of time
- Again, Speed fan is so underrated but so extremely powerful
29:17 – DAY TRADING STRATEGY
- This strategy is primarily based on volume (high and low of the candles, liquidity) and reactions
- Daniel always waits for a reaction, he does not pre-set bids
- Patience is very important with this strategy
- With this strategy, you trade with the momentum of moves
- Key components
- TPO charts
- Open interest
- Volume/momentum
- Fibonacci
- This strategy gives 1-4 trades a day
- When there is no set-up do NOT trade, but when the trade comes, it is usually a very good one.
- MS, OI and volume show momentum of the move + Fibonacci is Daniel’s primary tool for confluence (entrance is not based on it)
- TPO charts and volume tools (POC, VWAP etc.) give trade entry.
- MS (15 min) shows the trend (easier to monitor for newer traders)
- Volume shows the strength of the move (more advanced method)
- OI shows the aggressiveness of the move
- Daniel obviously uses CC, but he also uses .796 fib in the low volume environments (ranging days) and .28 in high momentum environments (trending days) – CCW!
- For this method, TPO chart SPs or HTN are highly favourable
- Reading momentum and context is the most crucial – if you use a strategy but don’t understand how to gauge momentum or context you fail. These two are the most crucial
- On trending days, you have to look if longs or shorts are aggressive (in Exocharts). Also on ranging days when you look for pull-backs, knowing who is aggressive (momentum) is very helpful. Along with this, you have to see if OI is following the aggression.
42:00 – EXAMPLES
- When there is an upwards move, it should be supported with NET longs pushing (aggressive)
- One of the most common set-ups in this strategy is VWAP+POC confluence (the first touch gives a trade)
- Very good example: There is a trending (downwards) day and the price rises with big candles + some liquidations on declining OI. Price hits the dPOC + pdVAL + VWAP = short the bounce (CONTEXT)!
- Understanding correlation with other assets (ES, DXY etc.) helps tremendously
50:08 – TEMPLATE EXPLAINED
- This is basically the all-in-one template (TPO chart, volume chart, candlesticks based off of volume, daily volume profile of last two days, delta profile of last two weeks (ultra-powerful), CVD divergence, OI, NET longs, NET shorts, H-L, Time and Trade counts.
- It may seem perfect, but in fact, a perfect trading strategy does not exist.
- The final piece of the puzzle is found with experience
55:55 – Q&A
- Daniel does not adjust the Speed fan when changing time frames (it is not incorrect though)
1:15:24 – SUMMARY
- Momentum gives trade direction
- Volume gives entries
- Fibonacci gives confluence
- Context and experience