The Golden Four-Step Framework is a systematic trading approach consisting of four steps: (1) Find the trend (uptrend/bullish/buying, downtrend/bearish/selling, or consolidating/ranging/sideways), (2) Wait for a break of structure (BOS) where the market pushes past a recent high or low, (3) Wait for a retest where price returns to the marked zone, and (4) Take an entry after confirmation candle (green candle for buys, red candle for sells). This strategy works by identifying where banks and hedge funds have left footprints in the market, allowing retail traders to join their moves for profit. Traders should only trade in the direction of the trend and avoid trading during consolidating market conditions.
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Deep Dive
Wealth Makers Trading Training w/ Special Guest Berlinda - (Episode 29)Added:
Honestly, and so I'm very, very excited to share something little, I mean, to you guys um today on how I specifically see the markets, okay? Now, this is something that people pay me for.
Only Kashina and Derek can get this for you for free, trust me.
And I'm also very humbled to be in the position of sharing this knowledge, okay? So, I don't want us to waste time.
I just want us to delve into it.
Um I before you jump into trading, right?
There's something you need to ask yourself because we have something that we say that the market mirrors who you are.
When I entered trading, I just found out through trading that I'm a very impatient person. I'm an impatient person. I don't have what it takes to hold trades for long. Because of that, I found myself being a scalper. So, I'm not a swing trader. I don't hold trades for days or weeks or months, no. I'm in and out of the market as soon as possible. I trade fast. I make profit quickly and I leave the market, okay?
There's no reason to overthink it. So, I'm going to show you how I see the market.
I have taught beginner traders, people who knew absolutely nothing about trading to becoming profitable in 30 days.
I'm on a journey to impact the life of 1,000 people with this strategy, this very strategy. So, please pay critical attention because it's a very simple strategy that I've named the golden four-step framework. It just needs you to pay attention to these four steps and you're going to make money consistently with this strategy I'm going to teach you. So, count yourself lucky for being on this call, okay? Let's go straight to it. Now, if you are aware of what market structure is, or if you don't know what market structure is, market structure simply is the skeletal system of how the chart is, or how the market looks like, okay?
Um the strategy I trade is supply and demand, but in a very simple, very concise way, okay?
Now, this four-step golden framework I'm talking about is one, we have find the trend, okay?
Find the trend. Step two, wait for a break of structure.
Okay? And then step three, wait for a retest.
Sorry.
And then step four, take an entry.
These steps right here is what I call the golden four-step framework. It's a simple approach to see the market that once you apply it after today, you are going to be profitable. I can promise you this.
Now, when I say step one, find the trend, when it comes to the market, I'm going to, first of all, draw um a very um sketchy thing for you to have an idea of what I'm talking about before we move to the chart itself.
Now, when I say find the trend, when it comes to the market, we have three types of market condition. We have an uptrend, right?
We have an uptrend, which is also known as a bullish trend.
Which is also known as a buying trend or a buying market, okay?
Now, when you see this, when we talk about an uptrend or a bullish trend or a buying trend, it means the market is going up.
So, you see something like this.
Okay?
Forgive my drawing, it's not nice, but I hope you get what I mean.
This is what we call an uptrend. Okay?
Now, if you come to the market and you don't see this, you see the opposite of this, which is called I'm sorry. I'm sorry.
A downtrend, okay?
You see something like this.
Okay? This is basic understanding. Now, this is what we call a downtrend.
So, we have a downtrend, which is also known as a bearish a bearish trend, which is otherwise known as a selling trend or a selling market.
These are the two market conditions you would see to apply with the strategy I'm about to teach you. There's a third market condition that is what we call a consolidating market, okay? So, if you come to the market and you see something like this, this trend going up, it is a buying market, a bullish trend or an uptrend. If you see this, it's a downtrend, a bearish trend or a selling trend. Now, the third one, if you see something like this, now clearly with the selling and the buying, you can see it going in a clear direction. But with this, you can't see it's chopping. It's jumping between a ceiling and a floor, right? It touches here, comes down, pushes up, comes down.
So, you cannot see it going down or up. It is just consolidating, being in one position.
So, this is what we call a consolidating market condition. It is also known as a ranging market condition.
We can also say it is a sideway.
The market is going sideways, okay?
So, all these conditions or all these explanations, when you come here, we have an uptrend, when you come here, we have a downtrend, and then we have a consolidating market. You only need these two trends, the uptrend and the downtrend, for the strategy I'm going to teach you. Once you come to the market and you see this, this consolidating market, you stay off the chart. Remember what we spoke about on Sunday? You don't force trades. If you see a market condition that does not align with what you are looking for in the market, guess what? We stay off the market, because we are not here to lose money. We are here to make money. So, anything that will make us have unnecessary losses, we stay off of it.
Right. So, let me show you Guys, you can take a screenshot of the screen so that you keep it for reference.
So, now we have the uptrend, bullish trend, the buying trend. We have the downtrend, the bearish trend, the selling trend. And then we have the consolidating, the ranging market, the sideways.
All these three names applies to the same um market condition determining whether you are looking at a selling trend, a buying trend, or a consolidating. So, if you hear somebody mentioning any of the three as pertaining to whatever they are describing, you need to know what it is. I'll give you all three so that you will not be confused.
Okay. So, I'm deleting it now so that I can show you exactly the strategy, okay?
So, let me type back the strategy that got deleted. So, we said number one, you find the trend.
You find the trend.
Step two, wait for a break of structure. Break of structure is the BOS I've written, okay?
Number three, wait for a retest.
And step four, take an entry.
These steps is what you need to make money in this market with the strategy I'm going to teach you. So now, let's draw. Step one, we find the trend. Let's say we come to the market and the market is doing this.
What the market is doing now is what we call an uptrend.
Now, when you see an uptrend, all that you are supposed to be looking for are buys.
Okay, you are supposed to be looking for only buy setups. You don't sell in a buying market or in a buying trend.
The The trend is your friend until it breaks. This is a slogan or a motto we have that we say as traders every time.
The trend is your friend until it breaks. When you see a market condition that is going up, you are not looking to selling down or you are not looking to look looking for sells in a buying market. If you do that, you are going to lose money. So, what you do is when you see the market doing this, you can clearly see we are going up. If you are If you ask a little child, "What is this doing?" or "What are these sticks doing?" They will tell you it's going up. So, as adults, when we see this, we can clearly see the market is pushing up.
Step two says, "Wait for a break of structure." Now, this here is what we call a break of structure, okay?
Why is this a break of structure? Now, you can see these peaks being formed like a mountain.
All these things you are seeing here clearly is a push up, a pull down, a push up, a pull down, a push up.
Let's name these points.
The the recent highs that is being broken by the push up, okay? We have points one here.
We have points one here.
You can see the markets or the the push up happened and then there was a pull back here and then there was another push up. This second pushing up broke this recent high.
That is what we call a break of structure.
You see another push up then there's a pull down. This recent high got broken by this very push up.
So, we have a second break here.
Okay? And then we have a third one, this.
Okay?
This was broken by this push up.
So, when you go to the charts, you'll see what we call candlesticks. Example is here, but we'll go to the charts soon.
Let's look at a skeletal sketch of what I'm talking about.
If you see a push up that gets broken by another push up, you are waiting for a retest of the recent low.
The reason I'm giving you a simple um explanation towards this attempt for this. We have higher highs, higher lows, higher highs, higher lows. Higher highs, higher lows.
I don't want you to get confused, so just look at them as recent highs being broken.
Okay?
If there a couple of athletes running and then they they run and then they get to this point and they decide, "Oh, we are tired. Let's rest here and probably drink water to quench our thirst. When we are done, we continue our journey." So, look at this as people running, okay? Athletes running. When they run, they get to a point, they cool down and rest.
Then then they run again and then they decide, "We need to rest." And then they cool down a bit and rest here.
And then they push up again continuing their journey. So, all this you are seeing here is what we call breaking of structure to the upside cuz the market is buying. So, all these athletes or all these runners are running to a destination.
But each destination they get to, they rest a bit and then continue. The resting points, if it's broken by their running their continuous running it is what we call a break of structure.
This is as simple as I can explain it. I hope it makes sense. Guys, does it make sense?
If it makes sense, let me see 777 in the chat. Does it make sense?
Does it make sense, guys?
It does?
Okay.
Okay. Okay. Okay. Wonderful. So, all these pushing up, pushing up, pushing up is what we call a break of structure to the upside.
Now, when you see opposite of this, now let's go.
If we see something like this, okay?
You see something like this. Sorry, forgive me for my drawing.
Forgive me for this annoying drawing.
We see something like this.
Clearly, with this one, the runners were going up. But we here, they decided to go down.
Right? So, when we see this, we locate where the break of structure happened, just like we're doing with the buys. But this time around, we are looking at it breaking structure to the downside.
Guys, if you are able to really get this concept, I promise you, you would make money tomorrow with your own self analyzing the market.
So, get it clearly.
These are runners running towards a destination.
These ones push up. But these runners are pushing down. Okay?
Now, they push down, they pull back and rest here.
Then they push down again.
They pull back and rest.
And then they push down.
And then they rest.
They push down and then they rest. All this pushing down, pulling up and resting, pushing down, pulling up and resting, this is what we call a break of structure to the downside.
Okay? So, we are in a selling market. We are looking for only sells. We don't look for buys in a selling market, just like we don't look for sells in a buying market.
Is that okay?
Um as explained, when we see a consolidating market, which is this, we stay off cuz we don't need it.
We don't need to trade with this market condition.
So, let's see if we can um see if we can explain why this push down happens and why we need to look out for these push downs so that we'll be able to make money off of it.
So, going back to our first steps, we find a trend. We were able to determine this is a buying market, right?
We were also able to determine this is a break of structure because they at least run and push past a certain point.
So, these are what we call breaks of structures, okay? While they are breaking structures to the upside, now we are thinking of step three, waiting for a retest. How do we look for a retest? Now, you observe that anytime they push up, they pull down.
So, clearly, if uh sorry.
Clearly, if they push up over here, right? We are expecting another pull down.
Now, this pull down is where we look to taking a buy or we are we are looking at taking a setup. Or this is our opportunity to make money. This is the most crucial aspect. This is where we set our traps to make money. Now, guys, you and I our $100, our $1,000, our $2,000, all of that cannot move the market.
We are trading We are retail traders trading against banks, hedge funds, big players, people with billions and billions of dollars. They move the market. So, what do we do? Supply and demand will help you um look at the uh uh the footprints of these banks and hedge funds or whatever.
We are just copying what they are doing.
So, we are going to look at what the footprints they leave in the market and then we join them so that when they are pushing the market either upwards or downwards, we join with our tiny tiny money, we join and then we make money with them. Okay? So, how we are able to take a trade in a clear example here is when there's a break of structure to the upside, we are looking at the market returning down.
Now, this returning down can come to this point.
Okay?
Let's take a look at something. You see, when the structure was broken and they pulled down to rest, now they pushed up.
This push up is a lot of money.
So, what do we do? We kindly pull our rectangle tool and then mark where they they rested, okay? With the hope that when they come back to that same area, what will they do? We are hoping they push up.
Okay?
Now, trading is a probability game.
Now, we are looking at their returning I'm sorry, them returning to this um zone because when this zone when they rested here, they were able to push up.
So, we are waiting for a return to this zone and then we join them push the market up and break this recent high.
Okay?
How do we do that?
We are going to go to the charts and then we are going to see exactly how that is done.
So, let me leave this. We are going to come back.
Hoping to find clear example of what I'm saying and then you will see it for yourself.
Let's see. Let's see. Let's see.
Okay.
Guys, let's take a look at something.
Let's say you came to the market and then this is what you saw.
Remember we trade raw price action. We trade We are day traders. We are looking at what the market is doing right now, right here.
We are looking to take a trade with what the market is doing right now. All these, you can see all these are past data. All these informations are indeed necessary, but when we come to the market and this is what we are seeing on the market we focus on what the market is doing now, right now. We are scalpers.
That is if you are going to use my strategy, you are looking at what the market is doing now. So, let's just say we came to the market and then we we were seeing a clear bearish trend or a clear selling trend. What do we do? We remember our four golden step framework.
Step one, you look for the trend. We could identify this is a downtrend. Step two, we wait for a break of structure.
Where did the break of structure happen?
There was a break of structure here.
Okay. Market pushed down and broke all these lows. It broke down.
Now, step three we mark our zone. How do we mark our zone? We look at the most recent green candle from where there was a break of structure. We look at the most recent green candle.
As opposing to the red candles, okay?
If you are looking for buys, it's the opposite. But if you are looking for sells, you are looking at the most recent green candle after the break of structure. Where is the most recent green candle? This candle here is the most recent. So, what do we do?
We mark it. Now, marking this zone is like setting a trap.
Okay? It's like setting a trap for the market to return and then taking advantage of this move.
So, what you do is you wait Government of decolonization.
>> after the break of structure. around >> You wait for market to return to this zone.
And then, you wait for confirmation candle.
How do we look for confirmation candle?
bones and stuff. Confirmation to be able to enter the trade simply means you If you are looking for a sell, obviously, with this example, when the candles return to this zone or this trap we've set, we are looking for a red candle to close outside of this zone.
And then, we take an entry.
Okay? So, when there's a trend, a selling trend, we look for what we call a break of structure.
And then, we mark our most recent green candle because we are looking for sells.
We wait for the candles to return to where we've marked. We wait for a confirmation candle, which is a red candle coming outside of this zone. And then, we pull our ratio tool. Because we are selling, we pull our short tool, place it at where the candle closed.
And then, we hit our take profits.
Wait for the trade to play out. Now, guys, you can clearly see here, if we took an entry on this candle, perfect sniper entry.
We would have made a lot of money on this trade because guess what? It pushed down.
It pushed down to um sorry sorry sorry.
If you took an entry here, this was a one is to two risk to reward. Meaning if you risk $100, you are going to make $200.
If you risk $1,000, you are going to make $2,000.
This is beautiful. This setup was a beautiful setup because this move right here, we are going with a trend. We waited for a break of structure. No zone becomes valid until there is a break of structure. So, if there's a break of structure, your zone eventually becomes valid. You patiently wait for the candles to return to the zone where you marked. If the banks push this price down or the big players push this price down, all we are looking forward to doing is copying what they are doing.
They push price down. Probability that when they come back to the same zone, they are going to push price down again is high. But, we just don't jump into the market because price pushed here. We are looking for what we call a confirmation candle.
Now, once we are looking to selling, we are looking for a red candle to come outside of this zone, close red, and then we take our ratio tool, which is our short tool, place it here, hit a sell.
Then we target either one is to one, one is to two, one is to three. I always advise go to one is to two or one is to one because we are 5 minutes traders. We trade on the 5 minutes. We focus on the 5 minutes. We don't overcomplicate things. This is the simplest way to see the market. You see it for what it is. You will make money with this every day if you apply this tips. Now, because we are scalpers, we are looking to catch a couple of points and run out of the market. We are not looking to catch in 1 is to 3, 1 is to 4 because I see a lot of people wanting to catch 1 is to 4, 1 is to 5. Guys, don't do that because we are 5 minutes traders. If you apply this strategy, always focus on either 1 is to 1 or 1 is to 2. You will be profitable.
1 is to 1, 1 is to 2. Get out with your profits and then look for another setup if there is another setup. Or you close your laptop and then return another day.
Okay?
That was an example for a sell. Let's look for an example for a buy.
Right.
So, if you came to the market and this was what's the market was doing, you can clearly see again, if you ask a child what is this market or what are these things doing, the child would tell you they are pushing up. Okay?
Pushing up. The candles are pushing up.
If you don't understand the concept of candlestick patterns, I would urge you to really go to the candlestick patterns.
This will not be the only time I'll be teaching you this strategy. I know there will be more sessions, but if you don't understand the basics of candlestick patterns, just go through that and then come to the chart. Practice on demo with this strategy. I promise you. So, let's just say we came to the chart and this chart is what we are looking at. Remember, we are trading current price action. So, let's just say this was what the market was doing when we came.
What do we look out for?
Back to our four steps. We find the trend. What was the trend doing? The trend was moving upwards or is a bullish trend or a buying market.
What do we do? After looking for the trend, we look out for a break of structure.
See, there was a break of structure here.
There was another break of structure here.
Because the market, if you are looking for buys, is doing this, pushing up. Right? So, once we are breaking structure, we are looking at buys. So, here, if I was on this trade, I'm sure I took this trade. I am definitely sure I took this trade. If I was looking at the chart here, I'll see the market is pushing up. So, what do we do?
We just saw a big push up. It broke the structure, this recent high, okay?
This recent high got broken by these big green candles.
It pushed up to this point. So, what are we doing? We are going to mark the most recent red candle because we are looking at buys.
So, we take our rectangle tool, go to the most recent red candle after the big explosion candle moved upwards, okay? So, once we mark this, we've identified we have a break of structure already. So, what are we going to do? We are going to wait for the candles to return to this zone.
Once the candles return to the zone, this is a retest of this zone. Step three, wait for a retest. This is a retest. Now, where is the step four?
Step four is looking to take an entry.
How do we take an entry? We are conservative traders. We are not gamblers. We don't just jump into the market because the candles return to the zone. What do we do?
We wait for a confirmation. No confirmation, no entry.
How do we wait for confirmation? Because we are looking to buy, we are looking to a green candle coming outside of this zone. After the retest of this zone, we are looking at a green candle coming outside of this zone.
Once it comes outside and then closes green, the moment it closes green, we take uh long ratio two place it here.
Guys, guess what? We are making money off of this setup right here because the market is going to push up again, which obviously you can see. It pushed up clearly.
Pushed up. You would have smashed one is to two.
Clearly because the big push up that broke structure is telling us that if price returns to this zone, the probability that it's going to push up again is high.
But because we know the probability is high does not also mean we just jump into it. The market always reacts in funny ways because um there are news events, war here, all of that. So, for you to be extra safe, you wait for confirmation.
Like I said, with a sell, you are looking at a red candle coming outside of the zone and then you taking an entry.
With a buy setup, you are looking for a green candle coming outside of this zone. Once it closes, you enter for a buy and then you target your 1:1 or 1:2.
Okay?
Now, let me add one important thing so that we wrap it up for today.
When a candle returns to this zone, what will make this zone invalid is when a candle comes through this zone and breaks this zone. The moment a candle pushes past this zone, breaks down, guess what? It is invalid. We delete it from our screen like this.
We just delete it.
Because what it means is uh buyers could not defend the zone.
If you are in your room, right? If you own a house and you are in your room, and there's an outsider coming into your room, and is able to break into your room, and even use the back door, it means you are not safe, right?
If they got here, and then you were able to stop them, say, "Hey, this is my territory. You can't come here."
That is when it means you have power.
You've been able to defend your home from intruders.
But guess what? We are the buyers at the moment. This is our house, or this is our zone. This is our territory we are trying to protect.
Now, we have these strangers called sellers coming in because they are the red candles.
They decide to come inside our home and have the audacity to break past uh our home, go use the back door.
We are not We are If they are armed robbers, they are going to rob us.
>> [laughter] >> We are not safe. So, just like applying that concept to this this uh setup, you know immediately, "Okay, I'm not safe.
Let me just relocate."
Okay? So, your relocation is you deleting this setup.
Cuz we couldn't defend the zone. The sellers were stronger than us. They've broken the zone. So, the zone is invalid.
The reason why you always have to also wait for confirmation candle is Now, there are three entry types.
There's aggressive, conservative, and then break of the candle.
Aggressive entry means the moment these candles return to the zone we are looking at, the moment they tap in the zone. Now, guess what? This is where you take a buy. The moment the candles enter into the zone, you're hitting for buy.
The conservative entry is as who want to be cautious of whether or not the zone will get broken or not. Okay?
So, once we want to be extra cautious and know where we are placing our money, we would look for a confirmation candle. So, the aggressive entry is when the candles tap into the zone, you're hitting for buy. The conservative entry is this green candle.
This green candle that came outside of the zone and closed. It's a green flag or a a highlight that yes, buyers really are defending this zone. So, we can join them to buy the market. So, then we join them to buy. Okay?
What is a break of the candle entry style? Break of the candle entry style is one, waiting for the first candle to tap in the zone. That is your aggressive.
Conservative is waiting for a green candle to come outside the zone and close green. That is conservative. Break of the candle is simply wait for the next 5 minutes candle, which is this candle right here, to come and break the high of this recent green candle. Then, you hit a buy.
All three entry types work. They all have their pros and cons.
Cuz aggressive entry, you are entering and praying. I have students who come to my DM and go like, "Oh, but I just entered the trade and oh my gosh, it's in drawdown. I'm scared." I'm like, "Yeah, because you didn't wait for confirmation."
You just entered impulsively. I train students or I train traders to act conservatively.
Not to trade aggressively. So, if you want to have high win rates like I do, um in the month of March, in the month of March, 3 weeks into March, I made 35 trades taken. I lost just two.
Why? Because I'm always waiting for confirmation. I don't jump into the market. So, all entry styles have their pros and cons.
Aggressive entry, you just enter because the the market return to your zone without any confirmation. Conservative entry, you wait for a confirmation that truly buyers are going to push price up. And then the break of the candle, you wait for another confirmation. But I'm always using um conservative entry because break of the candle will make my stop loss wide and probably my take profit tiny. So, like I said, it all has its own pros and cons. Aggressive entry will give you a tiny stop loss, but it will make you lose a lot because you keep going to take trades without confirmation. Just enter trades whenever candles return to your zone. And that is not the right way to trade. Guys, I do not want to bombard you today with all of the information, but this very four steps, this very short explanation I've given you, if you apply it, train yourself with a demo account, you are going to see progress. We are definitely going to go into more details, but this is the skeletal framework of the golden four-step framework.
Thank you guys for having me.
I'm grateful that I gave me this opportunity.
Thank you guys.
Thank you. Thank you.
>> [laughter] >> Hi Derek. I'm done. I'm done with my my training. That was absolutely incredible.
Thank you so much.
I'm going to pass on to Jermaine say a few words and then we're going to close it out. That was incredible. You are the goat. Thank you so so much. Well done superstar. You smashed it.
>> [laughter] >> Thank you.
I feel like a lot of people are going to be trying this strategy tomorrow and they're going to make so much money.
Like they're going to make so much money tomorrow.
>> [laughter] >> Guys, make sure you post your profits in the group tomorrow when you try this strategy and it for sure makes you money cuz definitely Berlinda would love to know that you're like getting these results.
>> [laughter] >> That was phenomenal. I mean, words can't even describe.
Thank you.
>> Thank you. Thank you. So much.
Well, we're going to close out there.
Thank you so much. This recording will be shared out.
But thank you. I mean, we are so grateful and um may God continue to bless your trading account. May he continue to give you many more pips every single day.
>> [laughter] >> Well, God bless you guys. Um appreciate you all and I will see you guys on the next call on Sunday.
Thank you so much this once again. Thank you.
Thank you.
Thank you.
Say thank you.
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