How to trade Candle by Candle Method (CBC)

Good afternoon everyone. Maple Stacks here and welcome back to my YouTube channel. In today's video, I will be going over how to trade candle by candle method. Uh you'll hear me refer to this strategy as CBC. Uh this is a strategy that I created to uh gauge momentum within the market as well as being able to hold your winning trades longer. So, um you can use this on pretty much any chart whether it's futures, equities, options, crypto, you name it. So, uh starting off here, candle by candle method, uh it's noted here CBC by these red and green triangles. Okay, whenever I get a red or green triangle populating, this tells me that hey, I can either trade short or I can trade long. So from this perspective here at uh 750 this past Sunday, February 1st, candle by candle method flips short. Now it's really important on the time frames that you're trading. I focus on a 10minut time frame. All right? So when 10-minute CBC flips short, this tells me two things. One, you can trade short. And two, you can short when the candle is green. Right. So, quick little review. Uh, this is your candle. Oops. Okay, this is really simple. Hopefully you guys understand how candles open and close. This is just a quick little diagram for those who don't understand. But let's say, hey, candle opened. You see my mouse right there? That's the candle open. And when the candle opened, it pushed above the candle open. So that means price went from 958. And you see it pushed up all the way to that high there, 963. So five points. When the candle looks green like this as it's developing as the candle is open and candle by candle method is bearish that red triangle there that is exactly where you should be shorting right I don't want you to short red candles that's not a pullback all right so so when you short when the candle's green and then it sells off and then it starts to push below the candle open that candle goes from red or from green and turns red. You can see right just like that popped up green upper wick sold off below the open closed and it closed red. Right. So now that we understand where our entry should be, I'm going to follow along with uh the CBC. Okay. So what is CBC? Again, candle by candle method. So if you took the short on the green candle, you risk your position here as long as price stays below and does not close. The key word there is close above that pivot, you stay in the trade, right? You can get wicked out. I don't use a hard stop on the previous candle high. I focus on how the candles close. Okay? You will get wicked out many times if you're simply just using the previous candle high as risk. Okay, so that means hey, traders should have shorted right there, right? But what if they missed out on it? 10 minutes goes by, another 10 minutes, right? You don't get an upper wick. Be patient. Wait for those green candles. They will come. Green candle pullback right there. That's another short entry. Correct? So, here's where the candle by candle comes into play. So, you would trail your stop loss candle. Whoops. All right, that's right. Candle by candle. Whoops. By candle by candle. You can see right price is not closing above the previous candle high. you're not getting that CBC flip bullish and this continues down, right? Candle by candle by candle and you get what I'm trying to say here. You can hold this. You don't have to monitor this that candle by candle risk like that. You can just simply hold this as long as that CBC on 10-minute maintains bearish. Right? So, let's say trader shorted right here 9:41. It continues to sell off. CBC flips because the price closes above the previous candle high there. So from 941 that goes down to 8.90. That is 51 points on ES which is the equivalent to what is that? $2500, right? Because one point on ES equals $50. So, if you make 50 points times $50, $250 on one or excuse me, $2,500 on one contract. If you're trading the micros, right? It it's going to vary depending upon your size. But I don't these are not your only two entries. Remember, CBC is bearish. It tells you two things. You can take a short and you can only short when the candle's green. So, look at all of these trade opportunities. Candle's green. candle green. Candle green. Another one. All those upper wicks. You can see I mean that's a entry. This is an entry. That's an entry. Upper wick. This candle is actually green. Now look at this. What if a trader shorts right here, right? 8.84. Let's say 885 just for example purposes. And then price pushes and closes above the previous candle high. Right? That goes to 8.90. So a trader might lose five or six points. Five or six points risk. That's very small. That's $250 to $300 on one mini risk. What if you took this most recent short of green $8.99 sold off. I'm not going to give you the absolute bottom, but right there 893 to 880 13 points. That's great money. Okay. Now, on the flip side, for a long, what would we focus on? Right? This CBC flipping, again, very simple. It tells me two things. One, I can trade long. And two, I can go long on red candles, right? So, CBC flips, you can buy the red candle right here. If you bought it, that's at 890. Price pushes into bearish EMAs. you should scale out into bearish EMAs cuz this is a pullback for some shorts. But from 8.90 to 900, right? 10 points there. CBC flip short. Your runners, whatever you have, it's going to get stopped out in profit there. Fantastic. Then what does that tell me? CBC flip bearish. Remember, I can now trade short and I can short when the candle is green. Correct? So that candle was green. Upper wick, upper wick, upper wick, right? And where do you scale out guys? Where should you scale out? Pivot points always, right? Low of day breaks, high of day breaks for longs, you name it. Okay. Now again for the reversal here, let's say, hey, oh, you shorted green, CBC flips, right? You take the loss. But when one door closes, another one opens. candle by candle method flips bullish there. Okay, buy the red candle. Look at those lower wicks. That tells you when the candle was red. Any of these that's from 8.90 and that pushes the VWOP. I treat VWAP as a pivot. This is where you should be scaling out. So from 8.90 to 911, that's 21 points. That's $1,50 on ES. Okay. So what happens here? Just like last time, a CBC flip into bearish EMAs. Typically, it's a fake out. CBC flip into bullish EMAs, right? You see how these two don't line up and then it reverses. All right, focus. Watch my earlier video on how to trade EMAs to get a better, you know, sense on this and use CBC and your 9 and 20 together. All right, but this doesn't just work on this example, right? You can go into when the market opened candle by candle method flip bullish red candle red candle red candle red candle someone would have bought 944 pushed up 976 that's 32 points that's good money what happens then right CBC is still bullish they give you lower wicks and red candles let's say trader buys 975 pops up to 7,000 26 points really good money there. Okay. So, please study this. I really hope that that was a simple explanation on how to trade candle by candle method. Again, it is a momentum based strategy. So, it will have uh kind of some faults when price is trading in a range, but that's not a big deal. I'll have another video out on how to trade rangers soon. But, um I hope that you guys learned something in today's video, right? Leave a like if you did. Please sub to the channel for more educational trading content. Uh, and I'll see you guys in the next video. Thanks for your time.