The 1H Pattern Nobody Talks About.. (1H, 1M Strategy)

Finance-focused Trading Summary

Core Trading Concept: “1H Pattern” / Power of Three

• The method is built around a repeatable intraday sequence that appears across most candles:
  • Accumulation → Manipulation → Distribution
• This fractal process is often referred to as the “Power of Three”.
• Goal: enter near the end of manipulation and capture the remainder of the directional move, such as:
  • the full 1-hour candle move, or
  • 4-hour / daily analogs.

Key idea: you’re not trying to catch the whole move—you’re waiting for the manipulation phase to end, then trading the continuation.

Strategy Rules / Workflow (Step-by-Step)

1) Timeframe Selection (Fractal)

• Power of three can be applied to any candle timeframe, explicitly mentioned:
  • 1-hour
  • 4-hour
  • daily

2) Trade Frequency Control (Anti-Overtrading)

• Instead of trading every 1-hour candle:
  • take one trade per session, specifically:
    • Asia
    • London
    • New York
  • (one trade per session)

3) Main Example Setup: 1-hour (with 5-minute and 1-minute execution)

1. When a new 1-hour candle opens

   • mark the 1-hour open price.

2. Switch to the 5-minute chart

   • mark the most recent unswept 5-minute high and 5-minute low
   • these come from the area left of the 1H open.

3. Wait for price to take out liquidity

   • price must sweep (take out) either:
     • the 5-minute high, or
     • the 5-minute low.

4. Drop to the 1-minute chart

   • use it for execution timing.

5. Optional confluence

   • wait for a valid market structure shift (MSS) after the liquidity sweep.

6. Draw Fibonacci retracement

   • Use Fibonacci from the last high formed to the body of the last low formed
   • Important constraint: use candle bodies, not wicks for the “low/high endpoints”
     • explicitly: body-to-body, not wick-to-wick.
   • Apply these Fibonacci levels:
     • -2
     • -2.5
     • -4
   • (The subtitles indicate: “copy these settings, -2 and -2.5 and -4”.)

7. Entry condition (long/short logic, summarized)

   • Manipulation phase “usually” ends at -2 to -2.5
   • If price is sweeping the 5-minute low, the liquidity low should be below -2
     • (speaker notes the relationship between the swept liquidity and the -2 zone)
   • After price taps into -2 / -2.5, wait for confirmation.

8. Confirmation / entry trigger

   • Enter from a zone formed after MSS/confirmation, such as:
     • Inverse fair value gap (FVG)
     • Breaker block
     • “Fair value gap entry” and its inversion

9. Risk management / reward

   • Use 1:2 risk-reward
   • Stop placement:
     • placed beyond the relevant swing
     • examples explicitly mention:
       • stop below the low for longs (and analogously, stop above the high in short-style examples)
   • Targets:
     • projected to align with the method’s directional expectation,
     • often described as matching standard deviation projections and/or liquidity/tape alignment.

4) 4-hour Variant (High-Level Notes)

• For 4-hour Power of Three:
  • mark 15-minute highs/lows
  • entries can occur on 5-minute or 3-minute
• Explicit caution:
  • don’t execute on the 1-minute chart for 4-hour Power of Three setups.

5) Session-Specific Candle Timing (Gold Guidance)

• The speaker ties certain “Power of Three” checkpoints to specific candle times:
  • Asia: look for Power of Three for the 8:00 p.m. candle
  • London: the 4:00 a.m. candle
  • New York: 7:00 a.m. or 8:00 a.m. candle
    • (subtitles include a correction: “My bad. 8:00 a.m.”)

Instruments / Tickers Mentioned

• Gold (CFD): XAUUSD
• Nasdaq futures: NQ
• Gold futures: referenced generally
• No additional equity/ETF/bond tickers were mentioned.

Key Levels / Numbers / Metrics

• Fibonacci levels (core to the method):
  • -2
  • -2.5
  • -4 (sometimes referenced as where manipulation ends)
• Primary risk-reward: 1:2
• Operational assumption:
  • manipulation typically ends at -2 to -2.5, sometimes -4
• Performance claims:
  • improvement in win rate is discussed via confluence (e.g., MSS, SMT divergence),
  • but no quantified historical performance numbers are provided.

Examples (Qualitative, No Exact Prices)

Example 1 (Gold, 1H)

• Uses the 8:00 a.m. 1H candle
• Includes:
  • sweep of a 5-minute high/low
  • MSS confirmation
  • Fibonacci/SDev alignment to -2 / -2.5
  • entry from inverse FVG
  • stop management aiming for 1:2 RR

Example 2 (Asia, 2:00 a.m. candle)

• After 5-minute sweep and MSS:
  • entry from FVG
• Mentions a downgrade mechanism:
  • if standard deviation alignment is “too far up,” the setup may become an “A setup” instead of “A+”
• Emphasizes “logic” for standard deviation usage and alignment with:
  • -2 / -2.5
  • liquidity draw concepts

“A++” Example

• Uses the 8:00 a.m. candle
• Adds optional confluence:
  • SMT divergence
• Emphasizes a validity rule:
  • invalidate a swept low if it occurred before the new hourly candle open
• Entry timing:
  • after inversion / MSS and then fractal MSS
• Targeting:
  • projected to reach -2 “perfectly” (with mention of wick/offset nuance)

Cautions / Constraints (Explicit)

• Avoid overtrading
  • only one trade per session (not every 1H candle).
• Liquidity validity rules
  • the most recent 5-minute high/low must be “unswept”
  • some highs/lows become invalid if they were swept before the hourly candle open (noted in the last example).
• Fibonacci endpoint rule
  • don’t anchor using wick “low”; use candle body endpoints.
• Alignment requirement
  • don’t seek entries if price is below -2
  • confluence is stronger when -2 / -2.5 align with the liquidity sweep.
• Timeframe constraint
  • for 4-hour setups, don’t execute on the 1-minute chart.

Disclosures / Disclaimers

• No explicit “not financial advice” disclaimer was shown in the provided subtitles.

Presenter / Sources

• Presenter: an unnamed speaker (referred to as “Fazz” in the subtitles)
• No other sources were mentioned.