Bringing it all together
This guide will consolidate all the market analyses discussed across various timeframes and demonstrate how they can be applied in a practical manner through a real-life case scenario.
Last updated
This guide will consolidate all the market analyses discussed across various timeframes and demonstrate how they can be applied in a practical manner through a real-life case scenario.
Last updated
Since we now understand what each timeframe can provide for us, this guide will delve into a real-life scenario to demonstrate how we can effectively apply all the knowledge provided.
In the following image, there is a Stronger Color on Color pattern to be observed on the 6-hour timeframe, confirming that we currently have a market direction favorable for a long position.
When the most recent candle emerges, we immediately transition to the 1-hour timeframe to closely examine the current state of price momentum. As we observe the 1-hour timeframe, we can see that the same pattern (Stronger Color on Color) occurs at the moment, providing us with confirmation that these two timeframes are perfectly aligned.
The next step is to look for an opportunity to place your long trade, given that the market is in its bullish state. Therefore, we drill down even further to the 3-minute timeframe to observe the current cycle.
The subsequent image illustrates that, at the moment, the 3-minute cycle is not yet completed, and we may encounter a local top in the upcoming candles. Therefore, we need to exercise patience and wait.
After waiting for a few minutes, we encounter a slight price decrease (pullback), followed by the appearance of green candles once more. As we observe the red candles becoming weaker (smaller) and the emergence of these green candles, we position our trade around the outlined area depicted in the image below.
Furthermore, the 3-minute chart cycles once again, presenting us with another opportunity to go long. We identify the weakness of the red candles followed by the return of strength in the form of green candles. We enter the trade within the outlined zone and allow the market to unfold.
Merely 3 minutes later, our exit opportunity presents itself on the candle outlined in the image below. You might wonder what signal was employed to exit at that precise moment. The method used to identify an exit in this particular trade is known as . This technique holds greater value and is considered an advanced approach.
Later on, the market presented us with two distinct exit opportunities, highlighted in the subsequent image. The first exit is considerably more conservative, leading to smaller profits. Conversely, the second exit could yield significantly larger profits but comes with higher risk. The first exit would be executed using our method , while the second can be learned through the VIP Content, both of which are covered in our 1:1 Zoom Call.
