Hey hey: what's up my friends, so in today's episode right i want to share with you a simple trading strategy for beginners and you can use this strategy to trade, the stock markets, fx markets, futures markets, et cetera, okay, so again, right this strategy. Right, i won't say it is a foolproof right. You have to do the work to validate the findings right and make it work for you. So what i'm going to do is just to give you the big overview, the framework of this strategy, how it works right and if you want, you know, fine tune it to your needs right feel free to do so.

Okay, so again, please right. Do your work. Do your homework validate it and don't take anything that i share with you at face value: okay, so first thing: first right, a simple trading strategy for beginners: there are three things that i look for right. Whenever you know, i want to teach something that is of a beginner level.

First thing is this is that the strategy has to be easy to spot, because if someone is new to trading right, their eyes are not tuned into the charts. They're not tuned to the price section, so they will have difficulty. You know spotting quote unquote patterns in the market, so this is why, right it has to be easy to spot this. The first thing that i'm looking out for whenever i'm teaching something of a beginner level number two, the trading strategy - must have a logic behind it, because if there is no logic behind it right any trading strategies that you trade right, you won't have the conviction to Continue trading it because when you go into a drawdown right, you start losing faith in the system right, you will abandon it.

You know pretty soon, but if you understand the logic behind it, if you understand why it's supposed to work right, it's easier for you to stomach the draw down and continue trading it right before you know you get off the drawdown and you know reach new equity Heights. Okay, so you must understand the logic behind the system, and the third thing is, you must give it time right for the uh trading setup to unfold itself. This is important, especially for new traders, right if the setup occurs so fast right. They won't have enough time to react to it right, so we want ample time right for this trading setup to occur.

Okay, so let me share with you this particular trading strategy right that is beginners friendly number one. The first thing that you want to look for is for the market to be in the range okay at least 80 candles or more so you know, i'm sure you know, what's a range right, you know what it's contained between the highs and the low. So within the range you want to see at least 80 candles in it, you can, you know manually, calculate it or you know, use a tool to help. You tell you how many candles are in the range and the reason for 80 candles is that it makes it easy right to identify the highs and the lows of the range, because when there's when the range is, you know happening for a longer period of time.

Right, it's easier to spot. You know, support and resistance inside of it. So this is why we give it about 80 candles. Now, do you have to be too anal about it? Sometimes, if you have 75 candles, it's fine as well right just focus on the concept down here so now, once the range right is about 80 candles.

What you want to do is for the price to reach either the lows or the highs of the range. If the price is in the middle of the range, there is nothing to do so, take your hand away from the mouse. There is nothing to do if the price is in the middle of the range. You only want to get concern right if the price reaches the outer limits of the range either it could be the lows of the range of at support or the highs of the range at resistance.

So now, let's say, for example, the price has approached the highest of the range of resistance. Great. This is where you should be paying attention to. The next thing you want to look for is for the market to make a false breakout, so this is uh, something that is uh, pretty simple to spot.

The price breaks out of resistance, and you thought the move is real, but hold your horses yeah don't buy. Just yet, okay, what you're looking for is for the price to break out and then make a sudden reversal and close back within the range. So you can imagine right. Price breaks out of the resistance, the next few candles in the next one candle on the next two candle it suddenly collapses and closed back under resistance.

This is what we call a false breakout when that happens right. This is where you trade right in the uh direction of the false breakout, so meaning if the price breaks out and then closes lower back inside the range you're looking to sell this market, you want to sell on the next candle open right. Your stop-loss can just go above. The highest of the range.

Usually 180 are above the highest of the range okay. So in essence, what you're doing is that you're trading false breakout in essence you're? Just simply, you know profiting from traders right who buy the breakout and then got their direction wrong: okay, meaning it's a false breakout. So you are trading in the direction of the false breaker. You are profiting right from traders who are trapped when buying the breakout.

Okay, so once you have entered the market right, you place a proper stop loss. Where do you take profit? So very simple: you know that your range is contained between these highs and this lows so clearly right. If you sell near the highs on a false breakout, then you can look to take profits near the lows of the range, so one tip i have for you that you know don't try to take profit at the extreme lows of the range, because the market might Not get to that level so give it some buffer slightly above a bit higher. So it's a good chance of you know exiting the trade as a winner, okay, so this is generally how this trading strategy.

What i call this the false break trading strategy - and one tip that i have for you is is this - is uh, go with the time frame that you are comfortable with, because, if you imagine this right, uh 80 candles on a daily time frame, it takes 80 Days for it to play out it may or not, it may or may not be too fast or slow for you. I don't know: what's your you know your circumstance, but for someone who trades this on a one-hour time frame 80 candles is just 80 hours, which is just three or four days. So the time frame matters pick a time frame that you are comfortable executing the trade right, where you have enough time to monitor the market, to plot your highs and lows of the range. And then you know see how the price reacts at the highest and lows, and then, if it gives you a false break, set up, you can trade.

It so pick a time frame that is relevant to you. Okay and another thing is that for those of you who trade off the higher time frame like the daily or the weekly, i'm sure you can agree that you know such trading opportunities, you know, doesn't come very often because it takes time for the range to form. So a tip for you is to trade more markets right, so you can trade stocks. You can trade fx right exposed to different markets to have more trading opportunities right? This would be relevant to you, especially if you're trading off the higher time frame.

Like you know, the eight hour time frame, the daily et cetera, okay, so with that said right, i have come to the end of this video. A quick recap right. This simple trading strategy. What you're looking for is number one to have a range of at least 80 candles number two.

You want the price to reach. The outer limits of the range could be at resistance, or it could be at support right either the highest or the lows. The third thing you're looking for, is a false break, so wait for the price to break out of the range, for example, it breaks out of resistance and then suddenly collapse lower back within the range. That's what you want to look for a false break and number four: you can sell on the next candle open, stop loss right, uh, one atr above the highs of the range okay for targets number five! You can look to take profit right just before the lows of the range, so what i've just described is based on the let's say: you're shorting the market.

If you're going long, then it's just the opposite, okay, so with that's it. I wish you good luck and good trading i'll talk to you soon. You.