Summary of "Trading Course Day 7: How to Mark Up Charts"

This video provides a detailed methodology for marking up charts and trading based on higher time frame analysis combined with lower time frame entries. The focus is on identifying trends, key support and resistance levels, and volume-driven price action primarily during the London trading session.

Main Financial Strategies and Market Analyses Presented

Using Higher Time Frames for Structure:
- Primarily use the 1-hour and 4-hour time frames to identify overall market structure and trend direction.
- Identify key swing points: higher highs, higher lows for uptrends; lower highs, lower lows for downtrends.
- Confirm trend changes by observing breaks of these swing highs or lows.
Marking Key Levels:
- Mark current price, highest highs, closest highs and lows.
- Draw support and resistance zones using colored boxes (yellow boxes used in the example).
- Identify where bullish momentum originated (support levels) and where sellers might appear (resistance levels).
Volume and Session Analysis:
- Pay attention to the London session as it often brings significant momentum and volume.
- Volume spikes during sessions can indicate potential continuation or correction moves.
- Understand that price often pushes during the session and corrects later, sometimes over multiple days.
Trend Confirmation and Reversal:
- Confirm trend by observing Swing highs and lows on the 1-hour/4-hour charts.
- Transition from uptrend to downtrend identified by lower highs and lower lows.
- Use these structural changes to anticipate market direction.
Scaling Down for Entry:
- After determining the trend on higher time frames, scale down to 5-minute or 15-minute charts for precise entries.
- Look for bearish or bullish momentum and structure on these lower time frames that align with the higher time frame trend.
- Use break of structure or support/resistance levels on these smaller time frames to time entries.
Trade Management:
- Set targets based on previous swing lows or highs on the 1-hour chart.
- Typical risk-reward targets are 1:3 or 1:4.
- Beginners are encouraged to trail stop losses to lock in profits.
- Partial profit-taking is recommended while monitoring price action for continuation or reversal.
Avoiding False Signals:
- Trade with volume to avoid fake breakouts or liquidity grabs.
- Recognize that news days or volatile sessions increase risk.
- Wait for confirmation of trend direction before entering trades.
Example Trade Walkthrough:
- Identify an uptrend with higher highs and higher lows.
- Spot a trend reversal indicated by lower highs and lower lows.
- Mark support and resistance zones.
- Watch volume and price action during London session.
- Scale down to 5-minute/15-minute charts to find bearish structure after a correction.
- Enter short trades on breaks of support with stop loss above recent highs.
- Hold trades through session, adjusting stops or taking profits at key swing levels.

Step-by-Step Guide to Marking Up Charts and Trading

Select Time Frame:
- Use 1-hour and 4-hour charts for overall trend and structure.
Identify Key Price Levels:
- Mark current price, highest highs, closest highs and lows.
- Highlight swing highs and swing lows to define trend (higher highs/lows or lower highs/lows).
Draw Support and Resistance Zones:
- Use colored boxes to mark these zones where price has reacted strongly.
Analyze Volume and Session Activity:
- Observe London session for volume spikes and momentum.
- Note how price reacts during and after the session.
Confirm Trend Direction:
- Look for breaks in swing highs/lows to confirm trend continuation or reversal.
Scale Down for Entry:
- Move to 5-minute or 15-minute charts.
- Identify structure and momentum that align with the higher time frame trend.
- Wait for price to break support/resistance or structure for entry signals.
Place Trades:
- Enter trades on confirmation of momentum and structure breaks.
- Set stop loss above/below recent swing highs/lows.
- Target previous swing levels for take profit.
Manage Trades:
- Trail stop losses or take partial profits.
- Monitor price action to hold or exit trades based on continuation or reversal signs.
Avoid Trading During High Volatility Without Confirmation:
- Be cautious during news or volatile sessions.
- Trade with volume confirmation to reduce false signals.

Presenters / Sources

The video is presented by an experienced trader (name not specified) who has been trading for four years.
The presenter shares personal insights and examples from live chart analysis during the London session.