Video Transcript:
All right, welcome, everybody. Dan here from Funded Trader Academy. Today, we’re going to take a look at this week’s Trade of the Week. This trade is from July 22, 2026, and we’re going to look at this 21-point long trade where we risked about four to four and a half—call it five—points, with the stop all the way down at this swing low. The market then ran all the way up to the initial balance high.
Let’s walk through this trade. Before we do that, we’re going to go through some of the details from the pre-market setup that we were looking at before the market session. We had our bullish and bearish scenarios mapped out, and we had our targets set for the day based on the potential expansion that could take place following some choppy price action earlier in the week.
As we came into the day, price declined slightly during the overnight market. We had the Asian session up here, and the London session dipped a little lower into this four-hour fair value gap. Price dipped even lower just before the market opened and then bounced from that point. This created some bullish momentum to the upside.
Once the market opened, we created this bullish momentum to the upside. Let’s take a look at the smaller time frames. This is a one-minute chart.
We had a few levels that we were watching. We were looking at the London session high, the Asian session high, and the previous day’s high.
After the open, we had a parabolic move where price ripped higher, chopped for about 10 minutes, and then drifted all the way up and took out the previous day’s high. This created a new level, which became our initial balance high.
After the failure up here, price pulled back. During the move higher, we created a new 15-minute imbalance through this area. Price dipped into it, stalled, trapped some late sellers down here, and then bounced back to the upside, creating this strong surge.
We had a nice entry model down here. Buyers took control and started to push price nicely toward our target.
Just to recap, we started the day by framing our areas of interest, imbalances of interest, important levels, and potential targets. We then allowed price to navigate through these areas and show us what the market wanted to do. We let the market show us its hand first, and then we acted.
Let’s go through it one more time. We had an initial surge after the open. There was nothing for me to do here. It is very difficult to catch these parabolic, one-sided moves immediately after the open. At least with my style of trading, this is a very difficult thing to do, so I do not do it. I simply let the move go.
The market continued higher, stalled after taking out the previous day’s high, and then pulled back into a newly created intraday imbalance. We finally received a decent entry model when price moved lower and sellers attempted to push it down. The sellers then stalled and trapped some late retail traders.
From there, it was off to the races as price returned to the upside.
All right, that’s going to do it for this week’s session. We’ll see you in the next video. Thanks, guys.
Hey, everyone. It’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm-funded traders every day, click the link below the video and hop aboard. We’re looking forward to trading with you.
Comments
Post a Comment