How to trade with Weis Wave 1 Basic Principal - YouTube

Hello everybody and welcome from TD development.

Today we re going to show you how to trade using Weis Wave and the basic principles.

Let' s start. General rules to trade, first we need to identify the trend it's up or down and we need

to always trade with trend. We also to trade as specific points not anywhere, use money

management with risk rewards ratios having in mind small loses and last profits.

Stop trading 30 minutes before significant news and trade at least 30 minutes after the news

and the reason being that during the news of volatility is too high and usually they

don' t mean anything, if the smart money is positioned for the currency to go down and the news are very

good and the currency goes up finally the currency will go down because the smart money

is positioned to go down, so news is fake movement usually. Most important

rule is to take emotions out of the game. Now some basic beautiful principles and tools

to use. We can identify the trend using an EMA 50 on one hour chart. Good points to

look at our pivots daily, weekly and monthly this is usually when the price can stop and turn

Fibonacci, support resistance is very important one hour, four hour and daily and the volume. So there are no

special indicators needed to trade except the Weis Wave, (pip & volumw) both indicators one using

the volume and the other one using the pip movement and they are available for MT4

platform at MQL 5 market on the following links. The most critical point

here is that if you 're not able to read the chart and identify what the big boys are doing

meaning the banks, the funds and the brokers, that's the smart money, if you cannot do that then

you will not have a good success rate. One way to see this is by the volume, but since

the volume if you try to read it, bar by bar it s almost impossible to read this is where

the Weis Wave comes to help us out. Now, how to trade first we look at the daily, the four

hour, the one hour charts in order to identify as we said the trend. If there is a divergence we usually use the one

hour and the four hour, meaning that if the daily is going down and the four hours going

up and one hour is going up we will go with a one out of the four hour. Strength and weakness,

how do I identify that? If Volume (and pips) is greater on the up moves, on up trend then we are on an uptrend.

If Volume (and pips) is greater on the down moves then we are on a downtrend.

But high volume and widespread up bars many times mean weakness and high volume and widespread down bars many

times means strength. Finally remember that higher prices attract sellers while lower

prices attract buyers. So when do trade? We need to trade at specific points not just anywhere

this specific points are support- resistance, Pivots sometimes EMA 50 because sometimes

EMA50 he acts as a support or as a resistance level and Fibonacci retracements.

If there is confluence of more than one of the above points there is higher

probability to succeed. Now let 's look a bit about the relationship of the waves, the volume

waves and the pip waves. What we see here in the picture, the first chart is a pip wave

and it shows how many pips the price has moved in this wave and the second picture

is a volume wave which adds cumulative the tick volumes for the specific wave.

So, as we can see here the volume is almost linear with the pip wave, the volume wave is linear

with the pip wave, in both cases. This is a down wave since it's red and this is an up wave

since it's green. So, this is a normal flow but there are also other cases. In this case

we can see that the pip wave is much higher than the volume wave, these are fast moves

sometimes not backed up by volume as we can see here or sometimes they are backed

up by volume from previous waves so it matters what is on our left. Usually this stuff also happens

during the news very fast up moves without being justified by the equivalent amount of

volume. There is another relation which is one and it's one of the most important

relations. Now this relation shows what? It shows us that the pip wave, has not moved significantly

while the volume wave has been moving a lot (high volume).This is a very important combination because

we can figure out what the smart money is doing after the price breaks a significant level.

This situation occurs when the smart money is absorbing either buy or sell orders until

there is nothing left and then it explodes in one or the other direction, excuse me.

Now, some explanations and abbreviations for the charts we will show later on. Wave 0 will

be the current wave, wave 1 will be the wave before the current and wave 2 would be two

waves before the current. So, when we mention HV means high volume wave, LV means low volume

wave and HP means high pip wave, LP low pip wave Adding a V in front of these abbreviations

means "Very". For example Very high volume. Now let's look at some scenarios. I will not

go into details for that because I have also this written on the chart. These are change

trend examples at the one hour and the 4 hour chart. So, we put some abbreviations here so

CHT1 means change trend 1 while CHT2 means change trend 2

The details I will mention later on and CHT3 means change trend 3

These are three different scenarios when the trend is most likely to change. Let' s look

at some examples. So this is CHT1 scenario, this is a four hour chart

on USDCHF, we have our two indicators this

is the pip wave and this is the volume wave. So we start reading from the left

the volume down waves are higher, the red ones, are higher than the up waves

the green ones, So it s very easy to see we are in a downtrend and we can trade on a retracement,

for example this point here it s probably close to a Fib replacement or even previous

support, so having in mind the background which is the red waves, the down waves will go

for a short position here. But this scenario is also showing us when the trend is going

to change, look what happens here in the middle of the chart, almost. Very high volume down

wave and then an immediate reaction with a high volume up wave and high pip wave, this is the largest high volume

up wave all the way from the beginning of the chart, this means immediately that this

might be a possible turning point and in this case it is, we are waiting for the reaction,

this is the reaction coming down, as we can see this wave is very very small this down

wave, so the trend is changing, so we start going up.

Let's look at the second scenario. In this scenario we are in an uptrend with some up and downs and

what we see here, we see in wave 1, right here, very high volume but the pip movement is not that

significant that means that something is going on here. It doesn' t mean immediately that the

trend will reverse. no smart money might be absorbing orders and the market might go up.

So we wait, we wait to see for the reaction and what do we see here? we see a down move that breaks a

significant level, right here, we see a down move the volume is not small and then we have

a reaction up move with less volume almost reached the same level and then we went down

so this means that wave 1 all this movement here as far as volume without any movement in

pips means that the smart money were absorbing all the orders, all the buy orders that the

public was placing with Sell orders and this was the final reaction and we started trending

down, so the trend has changed. Let's look at another scenario. OK again start

reading from left to right. We see a very high volume down wave then we see here a

very high pip wave this could be news but at the same time we see climactic volume, if

we look at the volumes one by one, right here, since you see this volume here it's much much larger

than all the rest on the left of the chart. So this immediately together with this combination

shows us that there is a possibility for the trend to change so we wait. So what do we see

after that, we see a high volume down wave but without any pip movement, the pip movement

is nothing, so the smart money again is absorbing all the sell orders that are placed in the market

and when there is nothing left we start going up, so we broke this level which is significant

level previous support and resistance and after we practice level we re ready to go

up and this how it went. Now let's look at some scenarios where there is continuation

of trend examples in one hour and four hour charts, excuse me. So the scenarios here we call them

COTs, COT1 and COT2, I will not go into details for that, you can read it, we

will go directly to the examples. Let 's see one continuation example. OK we are on a downtrend,

OK the down waves are higher than the up waves the volume very obvious, then we see a big

down, volume wave and pip wave and then we continue without any significance large moves

then we see the first high volume up wave, together with a pip wave so this means

that the trend is changing OK. The trend started changing we start going

up up up and then we see a very high volume here but without any pip movement, so after this

wave right here we need to wait for the reaction, we mark the significant levels support and

resistance and we mark the reaction. So the reaction, we broke this level with

volumes reaction was down, so this was a trend we had a small retracement and then we continued

with the trend OK so again at this point here it's very important' after it breaks we know

what they have been doing. Now let s go to scenario 2. It's trend continuation again

so we start moving up from here, we see large down wave here but without any pip movement

so we break again this level somewhere around here and we start going up then again as you can see

the green waves, the up waves, are higher than the red ones, so again we see a big red

down wave in volume but there 's no pip movement and again we break with significant volume

with an up move and will continue the trend up. So these were some of the scenarios

of change trend and continuation trend. Now enter points, uh we usually go with a one

hour and 4 hours far as the trend is concerned but the entry points should be placed on a smaller

timeframe we use five minutes and we see to identify the entry points or critical levels

using large volume. Viewing what happens at significantly level such as Fib, support -resistance you must see

significant volumes on the lower timeframes before you enter. Detail as far as entry points

will come in a next training video. Thank you for watching and if you 're interested in this

method of trading you can download the two Weis Wave indicators for MT4 platform from the following links

Thanks again bye bye!!!