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02-ICT Mentorship Core Content - Month 1 - How Market Makers Condition The Market

Last modified by Drunk Monkey on 2022-08-24 09:43
1 00:00:22,920 --> 00:00:34,170 ICT: Okay, folks, we are in the second teaching of a series of eight for the month of September 2016. And you've seen this before. But I just want to bring
2 00:00:34,170 --> 00:00:43,710 this up to you one more time. This is the market efficiency paradigm. And what this generally is depicting, or what I was trying to communicate, by drawing it
3 00:00:43,710 --> 00:00:58,260 out is, we, as new traders, are collectively part of this larger hole over here, of uninformed money. And whether we acknowledge it, or whether we believe it, or
4 00:00:58,260 --> 00:01:07,530 what we will invariably come in contact with the understanding that there is a smart money group of traders out there. And when I first got involved in
5 00:01:07,530 --> 00:01:15,510 trading, I didn't know anything about smart money. I just knew that the markets were potentially there, and I could be profitable. And in fact, I was going to
6 00:01:15,510 --> 00:01:26,760 be profitable, I knew it, I couldn't believe I'll ever lose money, and so I lost it. So when we, as traders, look at the marketplace, as new investors, new
7 00:01:26,760 --> 00:01:38,970 traders, new speculators, we may or may not have the understanding that there is a smart money entity out there. And we as the larger populace of retail minded
8 00:01:38,970 --> 00:01:51,720 trading, we think because of our sheer vastness, okay, we are the driver, okay, of this apparatus that's called the marketplace. And we tend to think of
9 00:01:51,720 --> 00:02:01,260 ourselves as the drive axle of what makes the markets go up and down, which is the facade that's the facade of supply and demand. That's the facade of trend
10 00:02:01,260 --> 00:02:10,260 lines, driving price when it touches it, as the facade of moving average crossovers causing prices go up or down. That's the facade that's perpetuated.
11 00:02:10,470 --> 00:02:21,240 And we are led to believe that that's exactly what takes place, either in books or in seminars, or webinars, or gurus, people. And I've done this when I was
12 00:02:21,240 --> 00:02:31,230 younger, too, I was convinced the indicators drew price up and down, and I, I packed houses on America Online, when I got on a chat room, and people were in
13 00:02:31,230 --> 00:02:40,740 there flocking to hear the things that I would discuss about stochastic, and RSI and weightings for sonar. And I was talking about three momentum indicators.
14 00:02:41,130 --> 00:02:51,660 When you if you're looking to follow momentum, just follow one. So if anyone knows more about being in this group over here, trust me, it's me. I've been
15 00:02:51,690 --> 00:03:01,230 I've been in this group, enough to know that I learned more about this group over here that doesn't like to draw too much attention to itself. The contrast
16 00:03:01,230 --> 00:03:09,510 that with everybody in the retail, we all have Twitter accounts, we all have my effects books that we're sharing. We're all trying to be on Instagram showing
17 00:03:09,510 --> 00:03:23,490 Lamborghinis, and whatever else houses, cars, boats, yachts, girlfriends, they even yours. Everybody is living large over here in the uninformed money. And
18 00:03:23,490 --> 00:03:34,110 smart money. They're here quietly, just doing their thing. Who's inside this small circle over here? The banks, who's in here, everybody on social media,
19 00:03:34,710 --> 00:03:45,030 everybody in a retail account, all real gurus and teachers out there that have things that they're selling services. And, yes, I have a new service. But when
20 00:03:45,030 --> 00:03:56,430 I'm teaching you ain't available anywhere else. See, this group, this large populace of people, they think, and I was part of this group, initially, they
21 00:03:56,430 --> 00:04:05,790 think that the sheer vastness and size of them is much more controlling in terms of where price is going to be driven higher or lower, because of the buying and
22 00:04:05,790 --> 00:04:22,050 selling pressure that's equated to their mere involvement in price. And that's a facade. This huge populace of trading people, or traders community, and the
23 00:04:22,050 --> 00:04:36,060 retail realm is really not that big. But we are led to believe that we are huge. And we are given this idea of ourselves that we're giants. We push price around
24 00:04:36,150 --> 00:04:50,460 and we don't, we don't. In fact, it's this small little group of traders. Okay, they're the ones that influence this entire mechanism that we call the markets.
25 00:04:51,030 --> 00:05:04,710 This small little group of traders is actually the drive shaft. And if this was a belt, like on a car, okay, like an alternate Here, this is the actual motor
26 00:05:04,740 --> 00:05:12,630 spinning the whole price higher or lower, it's not this big circle of people. So it has
27 00:05:12,630 --> 00:05:23,220 to be a paradigm shift. So if you're over here thinking that it's the group of traders that is online talking amongst themselves as a whole, they are the ones
28 00:05:23,220 --> 00:05:30,000 that make price go up and down because of their buying and selling interest, because the supply and demand factors around them. That's what pushes price
29 00:05:30,000 --> 00:05:41,100 around. That's a facade. And I'm here to tell you that you need to put that to bed now. Because I'm going to level everything you've ever imagined about the
30 00:05:41,100 --> 00:05:51,000 marketplace and how it really works. You have no idea where we're going. And you need to leave this realm in this circle of people in their thought processes,
31 00:05:51,210 --> 00:05:59,940 and transition, and have a paradigm shift in your thought process, about how the markets are efficient, because they're not efficient for the speculators.
32 00:06:00,960 --> 00:06:10,530 They're efficient for the smart money. The banks drive price, whether you want to accept it or not. That's what's going on. And the sooner you get to that
33 00:06:10,530 --> 00:06:21,180 understanding and expectation of what it is that's going on in price, it's not for your well being it's for the bank's well being, it's their business, and
34 00:06:21,180 --> 00:06:38,220 they are the liquidity provider. Everyone else's liquidity Are you a lamb, or a lion? Which one, because one of us is going to eat meat, and the other one's
35 00:06:38,220 --> 00:06:46,470 going to stand there looking stupid eating grass, I don't want to be a part of this herd. I didn't want to be part of that. Once I understood where I was, I
36 00:06:46,470 --> 00:06:56,130 wanted to get out of there. And I want to live over here in a small area. And for years, I quietly made money doing nothing but focusing on the things I knew
37 00:06:56,130 --> 00:07:07,710 that this small group of entity of traders did. And I looked at these individuals, initially, with disdain, thinking, I'm gonna come after you, I
38 00:07:07,710 --> 00:07:16,650 mean, I'm gonna devour you, I'm gonna do the same thing. And then as I looked at it more and more and heard stories about people and their lives, losing their
39 00:07:16,650 --> 00:07:29,850 homes, marriages, it tugged on me, and I didn't want to just be over here, being like the banks. And then I bridged over into what you saw me do in 2010. And I
40 00:07:29,850 --> 00:07:38,130 revealed a lot of things. In this mentorship, you're gonna learn a whole lot. But it's not meant for you to share it on your YouTube channel. It's not meant
41 00:07:38,130 --> 00:07:50,010 for you to share it on your blog. It's not meant for you to pass it around on Twitter, Instagram, make torrents. It's not supposed to be there. It's only
42 00:07:50,010 --> 00:08:01,980 supposed to be between you and I. You're welcome to share this with your this information with your children and your family members. Start a legacy, but
43 00:08:01,980 --> 00:08:10,320 don't make this common knowledge. It's going to happen, some goobers going to take this stuff and be the one that we are, I'm the cool guy. I'm the one that
44 00:08:11,070 --> 00:08:24,540 got in there and made it all accessible everyone else she can feel the hit like the hero that you're not really doing yourself a favor. Let this stuff stay well
45 00:08:24,540 --> 00:08:37,590 hidden. You're paying for it. appreciate it for what it is. And don't share it. It's not going mainstream. You're this is the group that we have whoever can
46 00:08:37,590 --> 00:08:47,580 make it in between October 1 And now. That's it. That's it. Because when we leave September, in October, we're buttoning up all of the free tutorial stuff.
47 00:08:47,610 --> 00:08:58,860 And we're going right into the nuts and bolts of where we gotta go to get to the latter months. See, when we come into the marketplace. We don't understand this.
48 00:08:58,950 --> 00:09:10,620 We think that this group that we're part of, we are the market, we are the market, we're the traders, we push price up and down. But if you're honest with
49 00:09:10,620 --> 00:09:20,640 yourself, if he's traded, anytime you look back on your trading, you probably looked at the market, you saw something like this. You knew something was going
50 00:09:20,640 --> 00:09:30,180 on and you just you just couldn't put it together. You see these vague things that take place in marketplace, your stock gets run, it looked exactly like it
51 00:09:30,180 --> 00:09:37,350 was gonna go up but it came only down not to you and then went up. You see these things happening to you. You just can't figure it out. You know, there's
52 00:09:37,350 --> 00:09:48,090 something to it. You've had the sensation that yes, this is rigged. My brokers had to get me it's not really your broker. It's the interbank feed that drives
53 00:09:48,090 --> 00:09:54,390 price against the funds and brokers are going to expand the spread is well on you and knock you out.
54 00:09:56,250 --> 00:10:04,410 When you look at the price action as a new trader and you had this exposure to understand how the markets are being driven and manipulated to the degree of
55 00:10:04,410 --> 00:10:15,570 every single minut detail. They're absolutely controlled. It's an AI, it's artificially intelligence. And it's, you are not trading against a person
56 00:10:15,570 --> 00:10:26,670 anymore. It's a computer program that delivers price. And it knows human behavior, because it's the same way it's been always fear and greed. So when you
57 00:10:26,670 --> 00:10:34,470 look at price, and you've been trading for a while you had this fuzzy picture about something going on behind the scenes, but never really understanding what
58 00:10:34,470 --> 00:10:47,820 it was until you met me. And suddenly, there's clarity, suddenly, you understand that there's something that's been there all wrong. Now you can identify it. And
59 00:10:47,820 --> 00:11:00,660 what's more important is, you understand how to track it, and do the same thing it does. And by default, you become a resident of that small circle, because
60 00:11:00,660 --> 00:11:12,600 this small circle is the drive shaft, it's makes the markets go around. It's not the big pockets of traders. It's the liquidity provider. So you need to be
61 00:11:12,600 --> 00:11:20,250 thinking, like this small group is over here. They're not trying to draw attention to themselves. They're not trying to be online, flashing this and
62 00:11:20,250 --> 00:11:29,940 flashing that, do this quietly in here, skin, people arrive. And you've been there before. And just this as well as I have, you either stay in this business
63 00:11:29,940 --> 00:11:37,560 long enough to lead this group, and come over here, or sit back in the middle here, you get real close to being there, and you get bounced back to this group
64 00:11:37,710 --> 00:11:45,270 get real close to you and getting over here and you start developing a bit more, and you play tug of war. Some of you in my group right now and this mentorship,
65 00:11:45,270 --> 00:11:54,360 you're in this little area right here, where you can see this some signals and signs of a real entity or smart money in play. But you're not fully convinced to
66 00:11:54,360 --> 00:12:06,600 leave this group yet. You have too many convictions about your tools, your indicators, you're your pet guru, your buddy that has a website, it's so cool to
67 00:12:06,600 --> 00:12:18,750 you. It's not enough, you gotta be able to release all that stuff, and just leave it all behind and join the smart money. Because trust me, we're not
68 00:12:18,750 --> 00:12:32,220 serving cookies, but it's a way better lifestyle over here than it is over there. The first video I gave you elements to a trade setup, and I give you two
69 00:12:32,220 --> 00:12:40,410 characteristics to it. There's context and framework around the trade. And then obviously those refer back to institutional order flow. So you have to be able
70 00:12:40,410 --> 00:12:48,120 to bridge the two. Understanding expansion retracement reversal consolidation, and applying them to respectively order blocks, fair value gaps, liquidity
71 00:12:48,120 --> 00:13:01,110 voids, liquidity pools stops online, I'm sorry, stop runs in equilibrium. What does that mean for us? For instance, in its scope of price, how can we use these
72 00:13:01,110 --> 00:13:10,530 ideas and make them applicable to price? Now I know some of you are chomping at the bit to learn long term trading because you can't do day trading. But bear
73 00:13:10,530 --> 00:13:19,590 with us as we go through these first couple months. Because I want you give you immediate feedback. And the way you get that is by using intraday study. Because
74 00:13:19,620 --> 00:13:28,980 you get a lot of feedback and intraday action that is applicable to longer term charts. But you can't I can't teach long term day trading, I'm sorry, long term
75 00:13:28,980 --> 00:13:37,350 trading on daily chart inside of 12 months adequately, it can't be done. Because you're only looking at the scope of one year. But with intraday, it's like
76 00:13:37,350 --> 00:13:50,460 compressing years of data in just 30 years. What's it even 365 days really, to some days that we're gonna be together. So let's look at the daily range.
77 00:13:52,050 --> 00:14:01,830 Suddenly expansion, retracement reversal and consolidation means something every day starts with consolidation, Asian range after midnight, there's a
78 00:14:01,830 --> 00:14:12,360 manipulation that takes place. That's expansion. It's coming in the form of a Judas swing. What is it doing? It's making the higher low in London, that's the
79 00:14:12,360 --> 00:14:21,390 modern swing for reversal. That's a run on stops. Then there is another expansion move, okay down into the New York session, then there's going to be
80 00:14:21,390 --> 00:14:32,280 what? Another consolidation, that's the New York consolidation going into the eight to 830 News embargo lift where there's gonna be another injection of
81 00:14:32,280 --> 00:14:44,010 liquidity or a reversal. Then there'll be another expansion and then we go into London close which is another reversal condition. And then what happens, the
82 00:14:44,010 --> 00:14:54,030 market goes in consolidation for the rest of the day. So we have a way of looking at these things and applying these concepts to time of the day and
83 00:14:54,090 --> 00:14:55,560 repeating characteristics.
84 00:14:59,010 --> 00:15:10,500 Let's get back to the intro bank price delivery algorithm, the daily range structure can be really broken down and simplified. But it starts with a price
85 00:15:10,500 --> 00:15:21,450 equilibrium, that's Asian range, then there's a manipulation. And that's always going to come by way of some news event, some news driver, either at the time of
86 00:15:21,450 --> 00:15:31,230 the methylation or just before. That's the Judas swing, then we'll see a range expansion. In other words, after the higher lows formed, the range will start
87 00:15:31,230 --> 00:15:42,150 expanding, it'll go down into five o'clock in the morning, New York time, or go up into that time window depend upon the daily direction we're going to use the
88 00:15:42,150 --> 00:15:51,840 perspective is by day, that means that Asia, the Asian range had a small consolidation. And then right after midnight, New York time, there's a drop down
89 00:15:51,840 --> 00:16:02,940 in price, that's the manipulation, making the false move for the low. There's a range expansion that goes into the reversal. That's classic London Open
90 00:16:03,390 --> 00:16:13,410 scenario, where it shoots down once it stops, and then what happens, it expands again, there's another range expansion into what, five o'clock in the morning,
91 00:16:13,950 --> 00:16:23,280 New York time, between five o'clock in the morning to eight o'clock in the morning, in that time window, the market will go back into consolidation, then
92 00:16:23,280 --> 00:16:32,280 it'll have a retracement between eight o'clock and 830 in the morning New York time, then it'll have either a reversal in New York session or another expansion
93 00:16:32,280 --> 00:16:41,100 move to range, I'll expand and make the rest of the day going up into 10 o'clock or 11 o'clock in the morning, New York time, where it will have a reversal.
94 00:16:41,160 --> 00:16:52,380 Again, that's long and close, then the market will go into consolidation. And then true day at 1900. On Forex LTDs. platform. If you follow along with the
95 00:16:52,380 --> 00:17:02,430 videos we've been doing so far, this month, you'll notice I'm going to talk about so we can see the interbank price delivery algorithm on a daily basis by
96 00:17:02,430 --> 00:17:13,320 studying these events, and then seeing it over a period of time, you'll know what is most likely to happen. Now let's look at a little bit further. If we're
97 00:17:13,320 --> 00:17:22,080 looking at price delivery, and this is the model that comes by way of my understanding of how the interbank feeds priced to everyone, if we're focusing
98 00:17:22,080 --> 00:17:31,110 on delivery price, we have to understand that it all starts with a consolidation. Nothing can happen until consolidation. Consolidation is when the
99 00:17:31,110 --> 00:17:37,290 markets quiet why why is that important? Because that's when the orders are building up in the marketplace to market makers roll out orders to build up
100 00:17:37,290 --> 00:17:47,820 above and below that range. The next stage is always expansion. It's not consolidation to retracement, it can't retrace, it hasn't moved anywhere. It has
101 00:17:47,850 --> 00:17:55,620 it can't go consolidation reversal, because it has to come out of the consolidation. So when you see a consolidation or holding pattern, you got to
102 00:17:55,620 --> 00:18:04,320 think the next leg is going to be in price. It's going to be an explosive move on impulse like impulse price swing movement, you need to see movement by
103 00:18:04,320 --> 00:18:12,150 determining what that movement is and what direction is relative to the conditions you're trading in. Once we're in the expansion stage, okay, then you
104 00:18:12,150 --> 00:18:21,720 have a choice. It can retrace, come back to the orb rocket just left behind and then recapitalize that and then make another leg up or down relative to the
105 00:18:21,720 --> 00:18:32,880 direction it's moved. Or once it's moved in the expansion, it can reverse. Once it reverses, okay, there'll be another expansion and then it goes back to a
106 00:18:32,880 --> 00:18:41,850 consolidation. The main thing is I want you to understand this as it never goes consolidation retracement, it never does consolidation reversal. It's always
107 00:18:41,850 --> 00:18:53,820 consolidation expansion and then from expansion, it goes either retracement or reversal. It does not do consolidation, expansion, consolidation, that does not
108 00:18:53,820 --> 00:19:05,340 happen. It does a consolidation expansion. You retraces for another move into an order block and then recapitalize it and do the same direction and move when
109 00:19:05,340 --> 00:19:19,470 they made it an expansion or it goes from expansion to reversal. When you understand this algorithm, the way it moves and where it operates, it's very
110 00:19:19,500 --> 00:19:31,980 generic. It's very systematic, it has only a few options to go with who and the time sensitive the day sensitive. Okay, there are intermarket related. So when
111 00:19:31,980 --> 00:19:39,480 one market moves moving real fast, if you understand the relationships that I'm going to teach you a couple of months, you'll know where the trade setting up
112 00:19:39,480 --> 00:19:46,500 because one's being held in yellow is like letting it run, which is the importance of knowing what the Europeans doing it for trade and fiber cable.
113 00:19:47,520 --> 00:19:55,500 All these things are gonna blend together and you'll know exactly how I'm doing these things internally, and I'm doing it on the fly. I'm not measuring things
114 00:19:55,500 --> 00:20:02,700 and writing this down, writing it down. Make a note to it. I just know by looking at price We'll actually be seeing and you see it, I'm thinking out loud
115 00:20:02,700 --> 00:20:11,400 in the videos when I'm doing the live sessions with you. All aiming at your better understanding of price delivery. And when you understand these things,
116 00:20:11,580 --> 00:20:21,900 when you get to the level of month, eight, and month nine in the mentorship, you're going to be so strong at knowing what the next thing is going to happen
117 00:20:21,900 --> 00:20:33,360 in your in your price that you're studying. You'll know all these four things, okay. There's only certain processes that have to take place in a certain order.
118 00:20:33,390 --> 00:20:41,580 Like I said, it can it never goes consolidation reversal. It never does consolidation and retracement, it goes consolidation to an expansion move, just
119 00:20:41,580 --> 00:20:49,740 an impulse leg up or down, it's either going to be traced back down into where it is rail rally up from what's going to rally back up into where it just
120 00:20:49,740 --> 00:20:58,050 dropped down from the consolidation starts at all, they're going to run an expansion. And then once it expands, he's either going to come back and retrace
121 00:20:58,050 --> 00:21:12,030 and give another leg up or down, or it's going to reverse and then from the reversal. Start applying time the general structure is consolidation in Asia,
122 00:21:12,450 --> 00:21:23,670 expansion, reverse in London, make the higher loads today, then expand small consolidation in New York retraced between eight o'clock and 830 in the morning,
123 00:21:23,670 --> 00:21:35,040 New York time, another expansion move, reverse back to consolidation. You understand price delivery, then you will not learn it just by what I've just
124 00:21:35,040 --> 00:21:46,950 explained to you just there. But you'll use this as a model that repeats itself over and over and over again. When you have higher timeframe directional
125 00:21:46,950 --> 00:21:57,180 premise, understood, and then you look at this price delivery algo. It's so easy to know what the price is going to do. Every single day since the last week of
126 00:21:57,180 --> 00:22:04,590 August, we've been together. And every single day, I've given you something that went right to the PIP or had an explosive direction move where you could have
127 00:22:04,590 --> 00:22:14,880 taken 5060 pips out. And I don't trade that much every day. But I'm showing you by desensitizing you to fear and greed, there's no receipt, there's no need for
128 00:22:14,880 --> 00:22:26,040 those things. What we're teaching is consistency, the ability to see these things happening all the time, and also exercising willpower on not wanting to
129 00:22:26,040 --> 00:22:34,950 make money. So you're suppressing the desire to make money, you're developing your patience, and you're learning a great deal, you have no understanding of
130 00:22:34,950 --> 00:22:43,260 how much you're learning just in these first few videos. But I'm telling you, you'll be able to look back on this months from now and say, Man, that was a
131 00:22:43,260 --> 00:22:53,250 huge step I didn't appreciate until now. There's a certain process, the way the price is delivered, and it can't be changed, it won't be changed. Don't be
132 00:22:53,250 --> 00:23:02,130 afraid, because you're learning several 100 people is not going to turn the whole world around. Okay, and they stopped doing this. It's not. So again, in
133 00:23:02,130 --> 00:23:13,110 closing, take the information I'm giving you stuff it under your mattress, stick it in a you know, a love letter to your grandkids on you know how to do it. But
134 00:23:13,290 --> 00:23:21,060 don't market it. Don't Don't do that. Okay? Not because I'm gonna lose sales. It's just, it's too good to share. And you're gonna see why I've kept it for so
135 00:23:21,060 --> 00:23:30,390 long and not wanting to do it. And hopefully, you guys will take this information and do something really great with it. And that means not starting a
136 00:23:30,390 --> 00:23:42,360 website selling it. Okay. There's nothing more I can say about this video, except for there's a process that you're going to learn that is very generic,
137 00:23:42,390 --> 00:23:52,020 and it will not break it will not stop working. And when you look at the marketplace in your charts, I want you to think that doesn't matter what time
138 00:23:52,020 --> 00:24:01,470 frame you're looking at. I'm just using the daily rings to give you how easy it is to see or repeating. format. So simple everyday, you get an opportunity to
139 00:24:01,470 --> 00:24:09,750 study and see how it works. That same thing happens where the weekly range, the weekly range is the same thing. Sunday's opens consolidation, and there's an
140 00:24:09,750 --> 00:24:20,040 expansion move in Monday. Then there's a reversal on Tuesday or Monday. And then what there's another expansion move. Then it goes back into consolidation
141 00:24:20,040 --> 00:24:30,030 midweek and it's either going to do what's going to reverse or it's going to retrace it's never done consolidation retracement, it's never done consolidation
142 00:24:30,030 --> 00:24:38,010 reversal. Its consolidation expansion that from expansion you're making the choice is either going to retrace back or it's going to reverse.
143 00:24:39,030 --> 00:24:46,680 Trust me, it seems like you still have a lot of choices to make, but it's not. And when you understand what you're looking at in terms of price, you'll know if
144 00:24:46,680 --> 00:24:54,720 it's really leading to a reversal or if it's surely going to retrace and give you another opportunity to get in that nother leg up or down that you saw on the
145 00:24:54,720 --> 00:25:04,410 first impulsive move. And believe me, you'll need to go back to this video even though it's the Second one, you'll come back to this video as we give more
146 00:25:04,680 --> 00:25:12,450 details along the lines of price delivery over the next couple of months, month four and five, you'll still refer back to this one and you'll see there it is.
147 00:25:12,450 --> 00:25:16,650 It's been there all along. So that doesn't mean wish you good luck and good trading.