SK System Trading Strategy 🔥 | Simple & Profitable Method for Beginners!

SK System Trading Strategy 🔥 | Simple & Profitable Method for Beginners! - Video Notes

1. Summary:

This video introduces the SK System, a beginner-friendly trading strategy focusing on trend-based analysis. The presenter explains the core concepts of the SK System, including identifying trends (up, down, and sideways), using Fibonacci retracement and extension tools to create trading sequences, and provides a practical demonstration using TradingView. The video emphasizes the importance of mastering the strategy on a single currency pair and understanding valid and invalid sequence formations. It concludes with a call to action for further learning and addressing viewer questions.

2. Key Takeaways:

* **SK System Focus:** A trend-based trading strategy.

* **Trend Identification:** Recognizing Up, Down, and Sideways trends.

* **Essential Tools:** Fibonacci Retracement and Fibonacci Extension.

* **Sequence Formation:** The core of the SK System, built using Fibonacci tools (0, A, B, C Points).

* **Valid vs. Invalid Sequences:** Understanding sequence validity is crucial.

* **Practice is Key:** Emphasizes focusing on one currency pair for mastery.

3. Detailed Notes:

**I. Introduction (0:00 - 0:19):**

* Video introduction to the SK System trading strategy.

* Target audience: Beginners.

* Disclaimer: For educational purposes only; not financial advice.

**II. Setting Up (0:19 - 0:40):**

* Suggests using TradingView (a free platform) for charting.

* How to add a chart in TradingView (using the plus icon).

* Example: Adding the GOLD chart.

**III. Strategy Fundamentals (0:40 - 0:59):**

* **Tip:** Stick to trading ONE currency pair initially.

* **Reasoning:** Avoids confusion and helps master the strategy faster.

* Focuses on one pair to become profitable and master the strategy.

**IV. Understanding the SK System (0:59 - 2:01):**

* **Trend-Based:** Primarily focuses on identifying and trading with trends.

* **Three Types of Trends:**

* **Uptrend:** Characterized by higher lows and higher highs.

* **Downtrend:** Characterized by lower highs and lower lows.

* **Sideways/Consolidation:** No clear direction, price moves horizontally.

* **Trading Focus:** The SK System primarily focuses on trading in Uptrends or Downtrends.

**V. Trend Identification in Live Market (2:01 - 4:11):**

* Provides examples of Uptrends and Downtrends.

* **Uptrend Example:** Shows examples of Higher Lows and Higher Highs

* **Downtrend Example:** Shows examples of Lower Highs and Lower Lows.

**VI. Key Tools (4:11 - 4:40):**

* **Two primary tools used in SK System:**

* Fibonacci Retracement

* Fibonacci Extension

* How to use the tools to identify the levels.

* Includes screenshots of the Fibonacci Retracement settings and Fibonacci Extension settings.

**VII. Tool Usage and Sequence Building (4:40 - 5:28):**

* **How to Use in an Uptrend:**

* Apply Fibonacci Retracement from Low to High.

* Apply Fibonacci Extension (at Higher Low) to the high.

* **How to Use in a Downtrend:**

* Apply Fibonacci Retracement from High to Low.

* Apply Fibonacci Extension (at Lower High) to the low.

**VIII. Sequence Formation (5:28 - 7:51):**

* **The core of the SK System.**

* The sequence is defined using Fibonacci tools.

* **Uptrend Sequence:**

* 0 Point: Lowest point in the market (low of the trend).

* A Point: Highest point in the market (high of the trend).

* B Point: Fibonacci Retracement levels (Low).

* C Point: Fibonacci Extension Levels.

* **Downtrend Sequence:**

* 0 Point: Highest point in the market (high of the trend).

* A Point: Lowest point in the market (low of the trend).

* B Point: Fibonacci Retracement levels.

* C Point: Fibonacci Extension Levels.

**IX. Valid and Invalid Sequences (7:51 - 8:46):**

* **Valid Sequence:** B point must be aligned with the Fibonacci Retracement levels and C point with the extension levels.

* **Invalid Scenarios:**

* When the B point is not within the Fibonacci levels.

* When the B point breaks the 0 point (creating a new low).

**X. Sequence Demonstration (8:46 - 10:32):**

* Live Market Example: Demonstrates how to build an uptrend sequence.

* Applies Fibonacci Retracement (Low to High).

* Applies Fibonacci Extension (from higher low).

* Illustrates the 0, A, B, and C point designation in a bullish trend.

* Mentions how a bearish sequence can be formed by using opposite methods.

**XI. Top Down Method and Conclusion (10:32 - 11:24):**

* **Top-Down Method:** Mentioned as an advanced concept not covered in this video.

* Call to action: Encourage viewers to ask questions in the comments.

* Encouragement to practice and show screenshots.