Gold Trading Strategy: Daily Bias and Liquidity on the 4-Hour Chart
I've been trading for over six years now and this gold trading strategy that
I'm going to give you could honestly be the one that changes your life forever.
traders results just like this, and
if you do everything that I tell you to do in this video, 00:09,800 --> 00:13,900
this could genuinely be the last video that you ever need on trading because...
that I'm going to teach you here,
it works and it's been proven.
thing that you actually need for this trading
strategy is you need a daily bias.
daily bias is
probably one of the most overcomplicated concepts in trading, right?
It's very overcomplicated,
but really it boils down to just one concept 00:30,900 --> 00:35,666 and if there's
one thing you take away from this video and trading in general is you only need
to master one concept.
everything else will fall into place.
And that concept is liquidity.
you don't know what liquidity is,
it's simply stop-loss orders.
and please listen to me when I say this,
the only reason these markets move
for stop-loss orders.
It moves to where the money's actually at.
for this video we're going to do it
on gold because that's the title of the video,
this will work on every single market.
Now, what actually moves the market
is liquidity on the higher time frames.
So the four-hour, daily, and weekly.
to find stop-loss orders or liquidity at
major highs and major lows 01:08,200 --> 01:12,500 on the higher time frames.
And these markets will just gravitate towards highs and lows.
believe me, go look through your charts,
right? The moment you understand this
trading through liquidity, that's when everything clicks, right?
when everything actually clicks.
So, I'm not going to go into much more
depth than that 01:24,500 --> 01:28,800 because again, this is a simple trading
strategy that you can just copy and paste and start to use today.
what you want to do is you want to use the
four-hour chart.
Now trust me, the four-hour chart is the best for this.
to get onto the four-hour chart and you
want to ask yourself, what major high
or low 01:37,500 --> 01:41,800 on the four-hour chart is price most likely
to go to next, right? No one knows for sure.
news events affect this market massively, so anything could happen, right?
But what's more likely?
And you can just zoom out if you really want to.
indicator, which I'll tell you more
about in a minute,
shows you a lot, 01:53,200 --> 01:57,000 but really you can just eyeball it, right?
What is most likely to happen on gold,
in this bit of price action if you opened the charts?
There's really three things that a market can do.
nothing, right? Could do nothing.
It could continue higher 02:05,000 --> 02:08,500 and take out this major liquidity
pool right here, this daily and four-hour high.
it can come all the way down,
disrespect all these order blocks and fair value gaps, and take out this low.
and I'm sure you do agree,
the most likely thing that could happen for price action 02:17,800 --> 02:22,000 is
for price to just continue higher and take out stop-loss orders here,
if you zoom out, all-time highs,
right? That's what it is.
and what we've just done there is almost
a poor man's way of determining daily bias.
Now I say poor man's way,
it's really the only way you need to determine daily bias, right?
same thing I teach my private students.
Now you can add,
you know, weekly chart,
of that stuff to bump the win rate up,
but if you just want to get profitable ASAP,
you want to use and then you can start
doing the more in-depth analysis later on.
beginning traders and unprofitable traders,
they struggle with the analysis part.
we know that price wants to go for this major high.
as always, if you want this indicator that
does it all for you, you'll find it in the description down below.
which high or low, it's all done for you.
Some people, you know, they're like, "Oh Atif, 03:03,500 --> 03:07,500 you know,
is it this low that price goes for?" No, no, no, no.
It's always the major low and major high.
the indicator does it all for you.
But now that we've got our bias, 03:11,500 --> 03:15,500 all we need to do now is
get on the lower time frames and look for something else, right?
don't just look for our entries.
So let's get onto the five-minute chart.
is always a nice time frame that we have.
So, let's just zoom out 03:22,500 --> 03:26,000 and let's just look at the overall
piece of price action that we've got, right?
and can we see it on the charts? Probably can.
This right here, 03:29,500 --> 03:33,500 and I'm just going to... I'm going
to do something different actually. I'm just going to mark out this blue line.
line here that I'm going to put,
this is the major high that we were talking about,
daily and four-hour high.
Now I'm just going to turn the indicator off because it's getting a
bit messy at this point.
What we want to do now
is look for our entries.
Now you'll see, you'll be like, "Oh Atif, you know,
market, but does this look like...
is this just easy to enter on a fair value gap?" 03:49,500 --> 03:53,500 No,
it's not, right?
Like this is how, you know, this is how trading actually looks.
It's not as easy as just buy
the dip and sell the rallies and target this high.
bullish, we know the market wants to go this
way, but smart money are going to manipulate
price 04:01,500 --> 04:05,500 so they can get into their positions, right?
So we have to follow what smart money does.
down manipulation and inducement and
all these weird concepts into just one term and one word,
So we want to look for something called a liquidity sweep.
what a sweep really is, and let's just make this a bit more obvious,
and there's no magic formula of,
does it have to sweep out Asia's high or previous day's high?"
No, no, no. 04:21,500 --> 04:25,500 You just want to look for a fake move.
And this is where it gets a bit...
I don't want to say vague or ambiguous,
this is where your intuition and
experience as a trader comes in, right?
And by experience I just mean knowledge.
that the markets want to go up, right?
We know that they want to go for this major high that we just talked about, right?
to do is we have to operate under the
assumption and the lens 04:37,500 --> 04:41,500 that this entire piece of price
action that we can see is all manipulation, right?
The market is not moving...
let me make this clearer so we can see the candlesticks.
not moving down here because we're
bearish on the higher time frames, right?
going for the major high.
What it's really doing is it's moving down,
generating liquidity, 04:53,500 --> 04:57,500 and then we have our little sweep,
which I'll mark out in a second, sweeping out London's low,
retracement, another retracement,
and then goes straight off. Where does it go to?
Liquidity targets here.
So let me just make this a bit more clearer for you.
this right here...
remember this is the five-minute chart. So this is London's low.
liquidity as a day trader and scalper.
What does the market do, right?
What does it do? 05:13,500 --> 05:17,500 We know we're bullish.
It doesn't just shoot off randomly, right? It does not do that.
what it does is it slowly comes down
and then quickly takes out stop-loss orders at London's low
Asia's low, but you get the point, right?
Liquidity here. Shoots off.
what time of day this is, by the way?
Look at the bottom of the chart, right? How beautiful is this?
beautiful is this? 7:00 AM Eastern,
which of course is New York session.
What does price do? 05:33,500 --> 05:37,500 Instantly sweeps out London's low,
shoots off, retracement, rip price off, right?
Beautiful bit of price action.
And again, if you ever struggle with sweeps,
enable the indicator 05:41,500 -->
05:45,500 and let it do all the hard work for you. So, someone was asking me this...
this bit right here is the sweep.
and it's a bit annoying, let me just make this clear for you, right?
So this is the sweep.
Like this entire thing.
And I'm sure you would agree, right?
Like do you really think that this is a bearish piece of price action?
the market is suddenly bearish?
No, of course not, right?
We know that the markets want to come for this high 05:57,500 --> 06:01,500 all the
way up here, right?
This is clearly not the markets have now reversed. No, of course not.
just a fake move and manipulation.
And again, let's just remove this. The indicator...
and I mentioned this in a previous video.
This gray shaded box is the beginning of the sweep.
reason we can't mark out the entire thing or
something because TradingView has made it so 06:13,500 --> 06:17,500
every indicator has to look visually different. I don't know what that means.
I don't know what that means.
I'm not a programmer,
but it has to visually look different, which is just dumb.
But anyway, it doesn't matter, right?
this right here is the sweep.
You know what the sweep is, right?
Especially if you've been watching this video, right?
You know what a sweep is.
So it's pretty, you know, pretty easy to tell. This is the sweep.
your entry, it does not matter.
Order block right here, you probably get Fibonacci retracement.
always tell people, and again you
can enable the indicator to do this for you, but you really don't need it,
just a fair value gap, right?
I think a fair value gap is just easy for anyone to spot in price action.
got your sweep, we know our bias,
we know price wants to go for this high, right?
here with all the liquidity.
All we need to do now is simply
enter on the fair value gap just like this.
your stop is always fixed.
It's always fixed at liquidity sweep low. Again, people still,
people still do not do this.
They put their stop here, they just make up their stop loss,
fair value gap. Just put it here, right?
Nice safe stop loss. I know it's fairly wide, but...
sweep right, when you get the bias right,
you will get a large explosive move.
I always say this,
before every big move in price action there will always be a sweep first, right?
if you don't believe me, go look...
don't just take what I say for granted, go backtest it,
win rate and all that good stuff.
So, what we're going to do now,
simply either a three-to-one, 07:17,500 --> 07:21,500 this is what I always do just
because it makes my life easier, like this.
Or a lot of my
private students 07:21,500 --> 07:25,500 and a lot of people in general,
they just like to target liquidity,
which if I'm a day trader or scalper,
you want to target. Previous day's high.
Do not get creative. I know sometimes you get away with it.
targeting this as a day trader or scalper.
If you want to be a swing trader, absolutely.
amount of money that you want to squeeze out
as a day trader or scalper is the previous day's high or low.
three-to-one or previous day's high or low.
Do not start targeting previous month or previous week's high and
low 07:41,500 --> 07:45,500 because, you know, very likely the price will reverse.
But this is literally all you need for this liquidity trading strategy.
combine liquidity with that fair value
gap strategy, you could honestly have
probably the best trading strategy
So go check out this playlist that I've made for you on screen now.
End of transcript · 2,089 words
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