Revealing the Counter-Trade Scalping Strategy That Made Me $350K
By fxalexg
Summary
Topics Covered
- Counter-Trend Beats Trend 10x
- Step 1: High at Weekly Resistance
- Step 2: Wait for Slowdown Signals
- Step 3: Confirm 4-Hour Bearish Shift
- Enter Lower High Engulfing
Full Transcript
What if I told you that there's a specific way of trading against the trend to actually win? Which if you guys have been part of this channel for a very long time or have seen my videos before, this literally goes against everything that I have been teaching up
to this point. And I'm talking about a particular strategy that has never been shown before in my channel because of the high risk. If you're trading against a trend, it's a high risk trade. And
it's really not that hard to learn. You
just have to be very, very precise with your entries. And those who execute
your entries. And those who execute these trades correctly can make 10 times normal of what a normal trade would take. Now, the problem is that this
take. Now, the problem is that this trading model exists. And I'm going to break it down for you in this video. But
I'm going to be completely honest before we start. I want to set the standard
we start. I want to set the standard that I've been very scared to upload this video in my channel for a very long time because I don't want to distract you from my main strategy or the proper way on how to trade. The proper way to
drive is to drive with both hands on the wheel. Make sure your mirrors are
wheel. Make sure your mirrors are correct, your seat belt is on. And this
counter trend type of trading, this high-risisk type of trading is like drifting. No seat belt, one hand on the
drifting. No seat belt, one hand on the wheel, one on the E bra. It's a very high-risk way of driving. And it's a very high-risk way of trading. So I
don't usually teach something like this, but I trust many of you guys that you can pull this off, adding it to your trading style, not making your trading depend on this approach. But recently,
I've seen so many of my students that use my perfect trade checklist succeeding with it. So, I said whatever.
I want to drop a video explaining to you how to properly use this model. So, you
can have a different perspective when it comes to operating the markets of what you are normally used to seeing me do.
Now, once again, this is an add-on to a strategy whenever the markets are moving slow or you want to have a bit more of an aggressive risk appetite. But do not make this your dependent strategy of
every single week of taking the trade because once again, it's very high risk, but very high rewarding. So, let me just show you a proper trade and how it should work so you guys can see the difference in between a high-risisk
trade and a counter trend trade rather versus a normal trade. We all know that protrend trades consist of highs and lows. And whenever the whenever the
lows. And whenever the whenever the market is going up, we just want to continue buying with that market. And
whenever the market is going down, we want to continue selling with that market. This is the most traditional way
market. This is the most traditional way of trading. This is so you have your
of trading. This is so you have your strongest probability trades and you are having a less risk on your trades, right? You're taking trades that are
right? You're taking trades that are very low risk, which in turns mean that you have less odds of losing. Now, when
it comes to a counterrading system, it is literally doing the opposite. If the
market is going up, you want to sell this market down. If the market is selling down, you want to buy the market up. You're basically predicting tops and
up. You're basically predicting tops and bottoms in the market. Now, this is once again, and I really want to express this, a very high-risk way of trading.
And there's four simple steps on how to properly analyze when the potential top of the market can be and when the potential bottom of the market can be.
Remember, you're catching a falling knife. You're trying to stop a rising
knife. You're trying to stop a rising bullet. And sometimes you can predict
bullet. And sometimes you can predict the perfectly and you look like a hero, but other times you might get burnt. So
these are the four steps in order for you to be able to properly identify these high-risk counter trend traits.
Right? So let's start off with the first step and we're going to use a bullish example in this example. So the first thing that you want to identify is a trending market. You want to understand
trending market. You want to understand is a market heading up or is a market heading down because you want to make sure that you can predict the stopping of that market at a point where it is
predictable. Right? So for this example,
predictable. Right? So for this example, let's set this example and we have a higher high and we have a higher low.
Very clearly this market is bullish and we can understand that we're creating highs and lows. Now what a proper trader should do is wait for this retracement
and once this retracement stops at an area of interest they would be interested in buying this trade and then they continue trading it to the upside continuing with the trend and just
following it along with what the market structure is doing. This is proper trading. Now, for us high-risisk traders
trading. Now, for us high-risisk traders and counter trend traders or degen traders, whatever you want to call it, we have to find a high of the market
that has hit a resistance point either on the weekly or on the daily. So, make
sure you pause the video, write that down. First step is going to be find a
down. First step is going to be find a high point in the market that has hit a strong resistance.
Resistance on the weekly or the daily. This will
only work on the weekly or on the daily.
On any other time frame, it will not be anywhere near as effective. So you want to identify a bullish market that is heading to the upside and that has
created a very strong higher high point whether on the weekly or the daily and we have some resistance to the left. So
when we look to the left way over here in the left we see some very strong resistance in this price action and then we can identify okay that this market has hit an area where it is very
strongly being a resistance point. Now,
this is pretty much obvious. Every
single market that has a high push needs some type of a retracement to continue heading to the upside. That is simply how the market works. I don't make the rules. It's what the market is destined
rules. It's what the market is destined to do. So, if you have a high point in
to do. So, if you have a high point in the market and it's something like this and we are not at a resistance point, it does not count. Do not force this
counter trend trade by trying to make certain things seem well or seem like a confluence when it's not really there.
If there's a trade that you want to have things as black or white as you possibly can and they're as strong as you possibly can is because it's already an it's already an aggressive trade, it's already a counter trend trade, you need
to have as many possible things in your favor that you can possibly add to this trade and this is going to be it. If
price is at a high point like this, but it is not at a strong resistance, you simply cannot move to the next step.
These are the foundations and the first step in order for you going to the second step. And this is extremely
second step. And this is extremely important because your odds of winning are going to be a lot higher if it's going to be at a resistance compared to if it's not. Because once again, you're
predicting the top of this market. You
want to sell this position. You're going
to take a counter trend trade. If you
are not selling at a strong resistance against the trend, this trend is powerful and it could keep pushing price to the upside where you can take a loss on this trade very unnecessarily where
all you had to do was wait for price to get to this resistance point. So, it's
very important that on the first step you predict or you you analyze the high as a strong resistance on the weekly or the daily. This is extremely important,
the daily. This is extremely important, right? Now the second step after you
right? Now the second step after you identify that the market is at a strong resistance or the week or the daily is you want
the market to show you its hand first.
Wait for a slowdown. So once price has hit a resistance level like this and we've had a massive bullish move to the upside, you literally want the market to tell you that it's rejecting this point.
There's so many traders out there that they will be analyzing a market like this and just because it price hits that resistance, right? So, they're patient
resistance, right? So, they're patient enough to wait for the market to hit the resistance and once it hits it, they're like, "Yep, I'm going to go enter this trade right now. I know it's going to sell to the downside." Well, it's like,
brother, have you even waited for the market to show you that it's actually slowing down? Price is supposed to slow
slowing down? Price is supposed to slow down because historically it has done it. It's supposed to, but it doesn't
it. It's supposed to, but it doesn't mean that it's guaranteed going to slow down at this point. price can just keep going to the upside because that's how strong this trend is. And well, hence once again, it's a counter trend trade.
It's a high-risisk trade. You want to have as many possible confluences in your favor that you can have to let you know that this trade makes sense. So,
you want the market to show you their hand first. What does that mean? Well,
hand first. What does that mean? Well,
you want the market to either give you a couple of dogee candlesticks, which are slow down candlesticks, meaning that the market is indeed stopping. You want for the market to give you a bearish
engulfing candlestick. You want the
engulfing candlestick. You want the market to literally show you that it is actually rejecting this area. Now, don't
get FOMO, don't get greedy, don't get uh anxiety because the market is having some type of a slowdown and it's technically going against or it's it's
leaving you behind. It's a counter trend trade. It's never going to leave you
trade. It's never going to leave you behind. It's always going to come back
behind. It's always going to come back for retracements because the trend you're trading against the trend, right?
There's always going to be higher highs being created. So you want the market to
being created. So you want the market to actually have a proper rejection and you want to enter technically a little bit later on this trade because you want that extra confirmation that this market
indeed is having that slowdown at this resistance that it is actually rejecting this high. Now after you have the market
this high. Now after you have the market confirm that it is slowing down and that it is actually rejecting this area that it can potentially start having that
retracement for the daily or weekly time frame to continue going to the upside.
That's when then you go down to the lower time frames. That's where then you will go down to step number three and which is going to be the 4 hour. So step
number three is go down to the 4 hour and identify the shift of structure.
So I'm just going to use this right here for examples purposes. This is the exact same market. So let's just pretend that
same market. So let's just pretend that this market right here is the daily.
Let's just call this EuroUSD daily time frame. Right? That's exactly
what we're looking at right here on the line chart. So this is the daily time
line chart. So this is the daily time frame. Now we're going to draw a
frame. Now we're going to draw a separation line here so we can tell the difference in between one or the other.
And this right here is going to be the 4our time frame. Right? Just give me a second. Let me draw my market structure.
second. Let me draw my market structure.
Right? So this is the exact same structure as right here. The only
difference in between this market and this market is that this right here is the 4hour time frame. So this is Euro
USD on the 4 hour time frame. Let me
just bring this right here. One second.
So Euro USD 4hour time frame. Right. So we're
looking at the exact same market just zoomed in just a little bit more. All we
have done at this point right now is literally just zoom in to this market structure right here. And this is exactly what we're seeing on the 4our time frame. It's the exact same Euro
time frame. It's the exact same Euro USD. It's the exact same live price.
USD. It's the exact same live price.
It's just we're we're going down a time frame so we can see it more in detail.
So right now this is the daily higher high. Let's just double click on that so
high. Let's just double click on that so we can identify it. So this is clearly the higher high and then this is clearly the higher low. Very easy. Now this is
the 4our higher high and then this is the 4our higher low. Right? If we all know our basic market structure we would know how to identify this right here.
Having a right here we have the higher low and then we have the higher high right here. Now this 4our higher low
right here. Now this 4our higher low this is what it looks like on the daily time frame. If you notice it's placed at
time frame. If you notice it's placed at the exact same point. Just on the daily, you can't even notice it because the daily is just a bunch of big bullish candlesticks heading to this upside. And
all the details within that candlestick are broken down on the 4hour time frame where it's consisted of a bunch of smaller candlesticks going up, going
down, so on and so forth. Right? So once
we identify that the market is at a strong resistance and that it's at a high point, we want to let the market show you its hand first and wait for it to slow down. So then after we have the
confirmation that this market has slowown down which is let's say a big daily bearish engulfing candlestick we want to make sure that that bearish engulfing candlestick or those dogeis
have shifted the structure on the 4 hour. So that's where we go down to the
hour. So that's where we go down to the 4 hour and we wait to confirm that the 4 hour has gone from bullish to bearish.
If we body close below this higher low that means that now we're bearish and this market is no longer bullish. This
is now the new lower low and this is now the new lower high. Now if the daily bearish engulfing candlestick is not big enough and has not shifted the structure
and let's pretend that it has done a retracement like this then we cannot go down to step number four. So, we need to
make sure that that slowdown or that stoppage of price has shifted the structure bearish because if we're trading against the weekly, if the weekly is bullish, if the daily is
bullish, we need to have at least one time frame in our favor to indicate to us that this indeed has shifted to structure and that it is going to the downside. And that's what we want the 4
downside. And that's what we want the 4 hour to show us. But we need the daily's help for that. So we need the daily to create a big enough candle or couple of candles to show us that it is indeed
actually breaking the 4hour structure.
So at this point, let's say that this has broken this structure point and we have officially confirmed that the 4hour time frame is now bearish. Now this is perfect because now on the 4 hour we're
now able to wait for the next step and that is wait for the lower high and enter on the engulfing engulfing.
So now that we have confirmed that we have a shift of structure. Now what we want to do is wait for the 4hour to come back give us a retracement and then on
that retracement we want to wait for a bearish engulfing candlestick. We're on
that bearish engulfing candlestick. We
have an entry confirmation that we are indeed going to go to the downside.
Place our stop loss above the highs target slightly above the area of interest where we are interested in potentially buying the trade. And then
that is it ladies and gentlemen. This is
a very simple high-risk counter trend trade approach. These are the four
trade approach. These are the four simplest steps on how to do this. Now
before you go on and run and go do this on your own, let me show you on some real life examples so you can see it visually and understand this to the perfection. But this is what it consists
perfection. But this is what it consists of. You first want to identify that the
of. You first want to identify that the market is at a high. Wait for that market to slow down. Wait for that shift of structure. Wait for the lower high.
of structure. Wait for the lower high.
Enter the engulfing. And you want to make sure that you get out before it hits that area where this market can potentially have a reversal to continue going to the upside. Because again, our
goal is to enter this trade with the continuation of the trend. We want to buy with this market. We want to continue heading to the upside. So,
since we're trading against it, we need to get out before it potentially continues to go to the upside. Now, this
is where you become a professional trader and you really start maximizing the markets as much as you can, how I do every single week, where you catch the counter trend trade and then you catch the protrend trade. And ultimately
people look at you like you're uh some type of superpower because you're predicting all points of the market.
You're predicting the retracements perfectly and you're predicting the actual continuations perfectly. The
continuations are easy. The pullbacks
are a bit more complicated because once again you're trading against the trend, right? So hold on to this thought. Let
right? So hold on to this thought. Let
me show you this in a real life example so you guys see it and understand it.
All right. Perfect. So we have this example which is a perfect example. This
market obviously at one point it was creating lows and highs lower low high.
This market then shifted from being very much bearish to now being very much bullish. So if you were to look at this
bullish. So if you were to look at this market structure whether you want to look at it on the line chart or the candlestick chart, this is very much bullish. Right? This market is very
bullish. Right? This market is very obvious that we are bullish. Uh there
you go. So this market has created this as the higher high. And then to me this is the higher low. the higher highs and higher lows are placed at the bodies of market structure. Right? So that's the
market structure. Right? So that's the body that is the body of the higher low.
Now if we look to the left, we can very much tell that this market after having this very strong push to the upside has indeed ran into a respected level of
support and resistance. This market has acted as support has acted as resistance in the past. So after having a massive push to the upside for 1 2 3 4 5 6 7 8 9
10 11 12 for 15 days nearly we have finally hit a strong resistance. Price
at one point also ran into this resistance but clearly once price hit that resistance it showed no sign of slowing down. It completely broke
slowing down. It completely broke through it. Now price has hit this high
through it. Now price has hit this high point and after hitting this high point what have we done? We have shown some sign of a slowdown. The daily have
created two daily dogee rejections and one daily bearish engulfing candlestick.
Now, this is exactly what I was explaining. After the price has a high
explaining. After the price has a high push, wait for it to slow down. And once
you have that slowdown confirmation, so as you guys can tell here, if I were to go and find the rules that we have just drawn off of these market rules right
here, let me go back to the AUDHF.
You guys can see that this right here we have to first find the high point in the market. So we have found the high point
market. So we have found the high point in the market. We are on the daily time frame. Next you have to wait for the
frame. Next you have to wait for the market to show you its hand first. Wait
for it to slow down. Now that the market has slowown down then you go to the 4our and identify the shift of structure.
Okay let's go down to the 4 hour and on the 4 hour let's identify the shift of structure. Okay, cool. So, as you can
structure. Okay, cool. So, as you can tell here on the 4 hour, the 4 hour was creating very clean higher high, higher low, higher high, higher low, higher
high shift of structure. So now the market is no longer bullish. This was
creating highs and lows all throughout here. This was creating very clean
here. This was creating very clean higher highs and higher lows until we hit this resistance. And now we had a shift of structure. Okay, now that we have a shift of structure, what do we
do? Well, then we have to wait for the
do? Well, then we have to wait for the lower high and enter on the engulfing to sell. Okay, so we have a lower low.
sell. Okay, so we have a lower low.
We're creating that potential lower high. We have to wait for that engulfing
high. We have to wait for that engulfing to sell. Okay, let's wait for that
to sell. Okay, let's wait for that engulfing. So, we have a very clean
engulfing. So, we have a very clean entry signal. As you can tell, that
entry signal. As you can tell, that would have been our engulfing candlestick as our entry signal on that lower high retracement. Stop loss could have been above these highs and then
your takerit was going to be placed at an area before the market could have a reversal. And now this is a very strong
reversal. And now this is a very strong support and resistance where the market could have a reversal from and that's where you would get out of this trade and then you would be taken out right at your takerit.
It really is that simple, ladies and gentlemen. It really is no like and and
gentlemen. It really is no like and and this is a live example that happened three days ago. This happened literally as of last week. A lot of people when they go show these examples and you can see the dates down here and the date
that this is uploaded and recorded. Like
we are on a live market right now. This
is December 20. What is it? December
15th. It is December 15th. So we're
recording this at the exact same time that this is happening. This happens
every single week in the markets. Many
people when they go show these examples, they go to years back and they show these fugazi ass examples. No, this is like real live happening in the markets every single week and this is the one
that literally happened almost last well almost 48 hours ago and I almost entered it but I didn't manage to be awake at the time that that presented itself but it really is that simple. Let me show you another let me show you literally
another example that is this clean as well. All right, next example that we
well. All right, next example that we have is GBP AUD and this is another textbook example. Obviously this market
textbook example. Obviously this market is very much bullish so we are trading against the trend. We have lower low, lower high, lower low, lower high, lower low. We shifted the structure and now we
low. We shifted the structure and now we are bullish. So you can consider this
are bullish. So you can consider this market very obviously bullish and we have some very strong and very clear resistance here to the left of it. So
we've hit a high point and this market is running into some very strong resistance that every single time we're below we reject. So we want to make sure the first rule is that you let the
market find the resistance. Second is
you want the market to show you their hand first. You want the market to
hand first. You want the market to obviously show you some sign of a slowdown. You want this. You want the
slowdown. You want this. You want the market to reject. And if you don't feel confident enough with that, you can wait for another candlestick to confirm that it is actually rejecting like this one, which would be the second dogee
rejection candlestick. Then that's when
rejection candlestick. Then that's when you go down to the 4 hour. And on the 4 hour, you want to wait for a shift of structure. So as of right now, this is
structure. So as of right now, this is the higher high. This is the higher low.
You want to wait for it to break that 4hour higher low. Even if you get double daily doe's like this one and it looks beautiful and it's creating strong sells to the downside,
so be it. You need to wait for that 4hour shift of structure. You need the 4 hour to be in your favor so you can have a very strong high probability trade setup. So, as you can tell, we have to
setup. So, as you can tell, we have to be patient and wait for it to body candlestick close below this structure point right here. We're going to be very patient and wait for that. And as you
can tell, we have officially closed below that area. Now, in this retracement, we want to wait for that bearish engulfing candlestick. That
would be our bearish engulfing candlestick right here. And then we would sell this trade to the downside.
And now, this is literally as simple and as clean as it gets. Cannot get any more clean. Cannot get any more simple. These
clean. Cannot get any more simple. These
are real life examples happening every single week in the markets and they're happening right in front of your face.
has the break, has the pullback. These
counter trend trades cannot get any more clear. And the craziest part is that I
clear. And the craziest part is that I literally do this every single week with my students live. Like I literally get on a call with my students on Sunday. I
share with them the trades that I'm going to be trading every single week.
And I identify for them the difference in between a protrend trade and a countertrend trade. We trade throughout
countertrend trade. We trade throughout the week. We find the strongest trades,
the week. We find the strongest trades, trade them pretty much live every single week, enter them, make mistakes, and throughout the week, I get on a call with my students where I review these trades for them, where I get on a
one-on-one call pretty much like this if we were to be on a Zoom call, open mic, and we get to chat about what you did right and what you did wrong. Because
you might have either entered off of this engulfing candlestick right here, or you might have entered off of this engulfing candlestick right here. your
stop loss might have been too tight, might have been too big, and your risk-to-reward might have not made sense. And me being on a call with you,
sense. And me being on a call with you, being able to review those trades with you and answer your questions live with real trades that you're taking that we are analyzing every single week on the markets together makes the biggest
difference in your journey because you're progressing as a trader. You're
progressing as an executor in the markets and you're with other like-minded people that are applying the exact same strategy every single week that simply works. And we're using it live as it's the market is happening
every single week. I'm using the most recent examples as I can possibly find to show you these counter trend trades are presenting themselves every single week in the market. All you have to do is just make sure that you know exactly
where to spot them and most importantly be patient. So if you want to know more
be patient. So if you want to know more about how to be my student, make sure you guys click the link in the description down below. Apply. Maybe you
get accepted, maybe you don't. It's
definitely worth a shot because we're accepting a couple new students every single week. And if I'm going to
single week. And if I'm going to dedicate my time to you and review your trades and get on a call with you pretty much on a one-on-one, I want to make sure that you're the right candidate for it and that I can actually make an impact and change your journey. If I
can't be of your help and your strategy or what you know is in align with ours, hey, we'll give you other YouTube videos so you can go go watch and help you out.
But yeah, all I can say is that make sure you guys hit that like and subscribe button. We do this every
subscribe button. We do this every single week and I'm very excited for what's to come up this week. I see two massive counter trend trades and I plan to execute one of them and these opportunities present themselves every single week in the market. They're just
going right by in front of your eyes because you simply don't know how to spot them. And hopefully with this video
spot them. And hopefully with this video I was able to help you out on how to identify the basis of it and how to find it rather than just second guessing it.
So hope you guys like this video. Make
sure to like, hit that subscribe button.
We drop a video every single week in this channel. We have a bunch of other
this channel. We have a bunch of other valuable videos, 10-hour videos in this channel, uh 15 hour tutorials. Go check
them out. You want to be a student, make sure you guys click the link in the description down below. And I will see you guys in the next video. See you
guys. Take care.
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