Market Update 04/06/2021, Phases and TFC
Hello traders and welcome to Market Update, it’s Thiru Nagappan here founder of Master the Markets, Elite Trader’s Conference, and the Traders Open Day. Today on the markets on a market update on the fourth of June 2021 Can you believe it, this is a six month half of the year, how was the year going on for you. So you see, you have to reflect, you have to also review your place where you wanted to get to, towards this year and where you’re at, and continuously filled the gap. So on today’s topic in helping you fill the gap, what’s your trading goals when we’re going to be looking at his phases, okay we’re gonna look at phases of cycles and also how to correlate them to a higher timeframe. So very interesting in date. Now, if you have any questions regarding any of this topic that we’re going to cover for today, or any follow up any of our other trader coaches who present market update have any questions at all or any strategies that you are doing, and you’re struggling to achieve consistency. You can always book a session with our coaches, you can take our trader personality test during the session which is a 45-minute session. To find out what strategies really fit you, give a free video course that fits with your personality as well. And then finally trade live with us and learn strategies that take just 15 minutes per day, which is basically end-of-day strategies you shouldn’t forget. Okay, so all of the great value for you on the 45-minute session. Now, let’s swiftly move on to today’s topic. So let me take a look at them from here, so let me just annotate them that’s moving on forward phases is looking at. So what are phases traders? So some of you may ask so what is it? So what are phases, basically, if you look at the price, price, never moves in a straight line right so that’s market principle number one? So if it does not, in a straight line, it moves in cycles, now you see interesting, but it moves in cycles and creates turning points, right? tops and bottoms. Now, between the tops and bottoms on the bottom to top here, it creates two moves overall, okay, either, top to bottom, which is going further like that or it creates a bottom to top move going up like this, okay. So in that instance, if you can see in this bottom to top, or top to bottom. When you combine that with the trend. Let’s say for example in here, Brent oil that’s an uptrend. Then what we say that this bottom to top move, is in line with the trend, because it’s going up isn’t it traders? so up 50 uptrend is what we call phase one. And then the one that goes against it. So from top to bottom, top to bottom is downward. Right, so the downward move in line with a trend in an uptrend is against that isn’t it. That’s what we call phase two. So in other words, in the generic terms phase, one is in line with the trend. And phase two is counter-trend. Okay, so therefore if I were to invert that into a downtrend.
If you take a look at it here, then what will happen is this one, which is a top to bottom move. That will be called your phase one. And then the one that goes against you, will be phase two. The most important thing though, to identify them correctly. And in a reproducible way and in a quantified way is the first thing you need to do is quantify the tops and bottoms, which is what the smart money indicator does okay? so that you can produce valid statistics out. Alright, so okay, that’s to do with that one so what some of you may ask okay that’s all good. I know all of that. But, why use that? why should we use that because you see trader why is it useful it is if you want to create momentum-based strategies. When you know phase one and phase two, which movement it’s in. Then, you can then correctly identify the momentum and trade only on phase one moves if you choose to, in terms of your strategies, or the one determine you will take off phase two is if you’re going to align it with a higher timeframe momentum, or towards a turning point towards in a higher time frame for it to be in alignment was phase one, so that’s my correctly identifying them, will help you. And also if you want to create reversion strategies as well. All this can help you because they are concentrating mainly on phase two moves or capturing turning points big reversal points in the market. Now, some of you may ask, okay, that’s good. I understand why to correlate on higher timeframes, but how would I do that, okay, how would you do that. That’s why I told you earlier that we will look at timeframe correlation as well. So if you actually think about it, traders. If you were to correlate to a higher timeframe. Usually, you see, when you think about timeframe correlation. If you just think about an uptrend or downtrend, between a daily, and a weekly or a one hour and a four hour. How many combinations can you get, yes, some of you are expressing combinations of permutations, we’ll say there are four. Correct. Now, however, if I were to do a phase one into the UTP one uptrend phase one. And let’s say, over here we have UTP two on the weekly. So in this kind of combination, how many combinations can I get some of you are very quick enough and you can work on the maths later in the traders’ toolbox we go through this as well. There are altogether 16 correlations, altogether 16 correlations. So that’s why I’m telling you this is very important to understand whether it’s phase one, phase two, and how it’s correlating to a higher time frame. So what are the 60 permutations, rather than trading all of them? You can decide just to formulate a strategy, just to tackle maybe two or three of those permutations, then you do another strategy that tackles the other permutations. This is one of the reasons why traders start to get some profits but they lose back the profits back to the market because some of the higher timeframes is blocking the price movement and that’s why you’re not getting movement forward, to make them money. Okay. So, in terms of 16 permutations. The first one I would say to really keep it simple. Once we join relation with phase one, on the daily and weekly okay? that’s how I would do it. So for example if I were to show you an example here. So let’s see on the Brent oil right now, you see, uptrend bottom to top move. So that’s phase one, okay. So, look at the weekly now, we can see, it’s very straightforward. It’s also phase one, so you’re good to go, alignment, so we move forward with that. Okay, so I would say, first of all, if your design strategies like that, just stick to that one. And sometimes, if you have, even though, on a daily. It might be a downtrend phase two downtrend phase two on a daily. But however, on the weekly in something like this. It’s phase one, want to be clear that you can take alignment because both of them are showing up upward move right? So that’s the thing that you just got to be aware of new trading strategies and how you want to momentum correlate to a higher timeframe as well. This is what we do on TSR primary so we take momentum trades. Okay, good. So I think that’s a dent on the topic. So what did we cover so far we looked at our faces. We looked at why we should know them. Why is it important, because of the strategies that we’re going to construct, especially for momentum or reversion? And then finally, how to trade them is basically construct your strategies which are giving you some examples just take two of them, and just create one strategy on that which is just correlating on lower and higher timeframe daily or weekly or for one hour, or you can also look at. Turning Point capture. Okay, all this we also go through introduce base camp package and our trader’s Toolbox workshops as well. For those of you that, any questions on this, as I mentioned, you can always go to book a free 45-minute session over here where we’ll do your trader personality tests, give you a free video course that suits your personality, and also trade live with you as well. Okay. And also if you want notifications for videos as they come out to give a really good amount of value. Go ahead and hit the subscribe button and you can get the notifications whenever we do videos. Now we swiftly move forward to our market update dollar Swiss on the hand over here. As you can see we just have the confirmation or response. So what we’ll be doing basically on this open equity upside. So, therefore, looking towards the long DOLLAR YEN, on the other hand, what we’re looking at over here, open equity is a bit diminishing. So we will be trailing our stop losses on MS Structure.GBP USD. On the other hand, as you can see, top to bottom move we’re here, so open equity more to the downside, eurodollar. On the other hand, open more open equity to the downside as well as we’re looking at. So this on one day exit on cash in 4.0 and it just exits on the shot target over the Aussie dollar on the other end over here. Again, more open equity to the downside. Well, that is what we’re looking at, GBP yen. Yes open actually diminishing to the top sites are looking for, shops, if you’re more aggressive stops on this as well. Bitcoin on the other hand, for open equity to the upside, is diminishing to the downside. So, if you were to trade this on the shop or getting tight on with stops, Brent oil. Yes, open equity diminishing to the downside as well so we’ll be doing MS one trail over here behind the law of each bar. Gold, on the other hand, you can see over here. Open equity to the downside as well. Footsie, of course, more than equity to the downside. High is almost reaching. If you’re more on more types of stops on the law of each bar. Dow Jones on the other hand, as you can see, it is still losing its momentum. I would say more aggressive stops if you’re long on it and open equities diminishing to the upside SMP similar story over there or connected to the downside, just yesterday, and then silver on the other hand, more open equity, I would still say downside top is probably view. But if you’re still trading a long time to stop on grains, wheat, on the other hand, I would say upside as. Okay, traders. I guess that’s pretty much from me on market update in terms of performance.
Let’s take a look at what we have on the fourth of June, Elite room pretty quiet. Only 100 pips, point two seven loss, a small loss. It does have a live trading room, in terms of momentum strategies. We did take a bit of a hit because of the choppy nature of the currencies mainly contributing to the losses but we still got some really good runners on dollar-yen and Brent oil still yet to be closed. But however for this week 20% or minus 30% Or you minus 0.3 For DSL primary took a little bit of hit, but it’s still running on some really good open positions on Brent oil on dollar-yen as well, minus 2% over 70%, doing at the moment, as well, towards the live trading room, which we haven’t closed out the pushes for this week, but overall, that’s minus 1.1. And then, a total of 5.18 minus 5.18. And then if your total minus 5.45%, once we get the good runs on this. So, always know your drawdowns strategy competition works towards your eventual positive equity. Okay. All right, I guess that’s pretty much from me, just quick reminders subscribe to the YouTube channel for our updates and notifications, and also coaching session so we can trade live and serve you. Take our Personality Test, and that’s all for me for now, and as we said till the next time stay disciplined on your trading plan and keep trading like a Master.