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Free 3m Trading strategy

Trade strategy

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509 views

Free 3m Trading strategy

Trade strategy

Uploaded by

foodgoods305
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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3M TRADING

STRATEGY
• There are 4 main components to this strategy. Starting with analyzing the market and
ending with properly executing and managing a trade.
• Structure (helps use create a bias for the market, bullish or bearish)
• Supply and Demand zones (helps us pick areas we expect to see bullishness or
bearishness from)
• Entry Confirmation (specific things we need to see in the supply and demand zones in
order to enter a trade)
• Trade Management (the strategy of managing your profits/losses once you have
entered a trade)
TIMEFRAMES

• Timeframes are an extremely important concept in trading that many people do not
understand correctly
• There is no one timeframe that is the best to trade, the purpose of looking at different
timeframes is to get a better understanding of how price was delivered to us
• The main timeframes that we look at in this strategy are the Daily, 4H, 1H, and 5min
• However, we may look at any other timeframes in order to get a better understanding of
how price was delivered in a certain area
STRUCTURE

• The first step is to use the structure breaks to determine a bias in the market on the
high timeframe, we call this the Structural Bias
• You do this by viewing the breaks up or down using the “mentfx structure indicator”
on Tradingview
• You can add this indicator to your chart for free
• Determine the structural bias of the Daily and 4h timeframe, if they are both in-line
with each other, you can hop down to the 1h
• You can use the indicator to determine when
structure is breaking up or down

• Here we can clearly see that the structure


breaks are majority bullish, with many to the
upside and only a couple to the downside,
seeing bearish breaks down is normal even in a
bullish bias

• We would determine here that the structural


bias is bullish
SUPPLY AND DEMAND ZONES

• The second step is to find supply/demand zones to target, we do this on the 1h timeframe
• Demand zones are just any candle that is followed by a bullish engulfing candle
• Supply zones are any candle that is followed by a bearish engulfing candle
DEMAND ZONES

• If the market is bullish, you look for


demand zones
• After you get a break up in structure,
you look for the deepest demand zone
from that break up and target it, if price
comes to the demand zone, we expect
price to deliver longs from there
SUPPLY ZONES

• If the market is bearish, you look for


supply zones
• After you get a break down in structure,
you look for the deepest supply zone
from that break down and target it, if price
comes to the supply zone, we expect
price to deliver shorts from there
ENTRY CONFIRMATION /CRITERIA

• The third step is to look for multi-timeframe entry confirmations in a supply/demand zone
• We do this in the form of the 1h 3M confirmation, and 5min buy-stop confirmation
• The second and final indicator you will need is the “mentfx triple m indicator”, which
highlights bullish and bearish 3M candles, bullish ones having green wicks and bearish having red
wicks
• This indicator is also free to add on Tradingview
1H 3M CONFIRMATION

• The 1h 3M confirmation is very simple, the first 3M candle that is printed in an SnD zone
will give you the 1h confirmation.
• In a bullish scenario, you will be looking for a green 3M candle in a demand zone
• In a bearish scenario, you will be looking for a red 3M candle in a supply zone
5MIN BUY/SELL-STOP CONFIRMATION

• Once you have the 1h confirmation, you drop down


to the 5min timeframe and simple place a buy/sell-
stop order on the first break up or down,
depending on the bias
• For longs, you simply buy-stop the first 5min
structural break up in a 1h demand zone, with your
stop-loss under the most recent pullback
5MIN BUY/SELL-STOP CONFIRMATION

• For shorts, you simply sell-stop the first 5min


structural break down in a 1h supply zone, with
your stop-loss above the most recent pullback
TRADE MANAGEMENT

• Once you have entered the trade, the final step is to properly manage it
• Firstly, if the trade hits 2RR, you move your SL to break-even
• Secondly, there are 2 ways which you can manage your running trades, what you use is up to
you and your style
TRADE MANAGEMENT

• 1: You can choose to TP at set RR levels (Example: TP 50% at 2RR and 50% at 4RR)
• 2: Or you can choose to trail your SL under structural lows and ride the trend up as far as you can,
when price finally comes down to your SL you exit the trade
• What you choose is completely up to you, test each one to see what you like better

OR
GO GET YOUR LAMBO

• Disclamer: This strategy is composed of the very basic concepts that are taught in the 3M
Trading group, there are many more complex concepts that are taught in our VIP program that
can be added to this strategy to make it much more powerful, but this is a very strong
foundation for you guys to start learning from
• It cannot be stressed enough that you need to go PRACTICE this strategy, backtest on
Tradingview, journal your trades, look at the data, gain confidence with the strategy before taking
it to the live markets with real funds
• Once you get comfortable with the rules, have backtested until your eyes bleed, and have the
data to back it, you’re ready, go get that LAMBO

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