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15-ICT Mentorship Core Content - Month 2 - Market Maker Trap False Flag

Last modified by Drunk Monkey on 2022-09-02 11:07
1 00:00:31,770 --> 00:00:42,420 ICT: Okay, folks, welcome back. This is lesson seven of eight of the second month of the mentor ship, we're going to be specifically dealing with the market
2 00:00:42,420 --> 00:01:01,500 maker trap of false flags. Now a false flag, okay is basically a pattern that classic Chartists and pure chart pattern traders will fall victim to a lot.
3 00:01:02,010 --> 00:01:10,110 Early on in my career, I fell victim to this particular pattern a lot as well, because as a new trader, being introduced to the markets, and the commodity
4 00:01:10,110 --> 00:01:20,520 market or asset class I started with was the commodities market. My way of introduction came by way of Ken Roberts, and one of the patterns that he taught
5 00:01:20,970 --> 00:01:32,880 in HIS Manual. Morgan was powerful money manual. I wouldn't go so far as to say that, but it did introduce me to technical analysis. And one of the patterns
6 00:01:32,880 --> 00:01:43,410 that studying classic chart patterns is a continuation pattern. And one of the simplest to see in price action is a bull flag. But unfortunately, not all
7 00:01:43,410 --> 00:01:50,370 sudden price rallies that move into a short term consolidation are bull flags. And if you don't know what a bull flag is, don't worry, I'm going to give you an
8 00:01:50,370 --> 00:02:01,380 example of what they are. But for now, for the points of concern, we have to understand that in a mature bull trend, or in higher timeframe, distribution
9 00:02:01,380 --> 00:02:14,400 levels, price will post or create or print if you will, in your in our charts, a false bull flag. Now retail traders, and I'm referring to myself when I first
10 00:02:14,400 --> 00:02:26,820 started as a commodity trader, I saw this as a classic continuation buy pattern. But it many times resulted in a reversal. As time went on, in my understanding
11 00:02:26,820 --> 00:02:36,510 grew, I discerned that understanding higher timeframe charts, and what you know now as a premium market, they assist me in understanding and identifying
12 00:02:36,690 --> 00:02:48,660 potentially bearish bull flags. In other words, a typical bull flag would indicate a pause or midway point and another leg higher, or basically a
13 00:02:48,690 --> 00:02:59,340 traditional ABCD pattern. And it's a measured move type bar phenomenon in price action. But I found that I would fall victim to this simply because I was only
14 00:02:59,340 --> 00:03:09,120 looking for patterns for the sake of patterns, price does not move based on any kind of pattern, whether it be a border block or mitigation block or breaker or
15 00:03:10,080 --> 00:03:20,640 even classic chart patterns like a head and shoulders, or in this case, a bull flag. Now obviously the opposite side of the spectrum is one more bearish in a
16 00:03:20,640 --> 00:03:31,830 continuation pattern in a nice strong trend, you'll see a quick sudden move lower, a small little consolidation and then another equal Leg Lower prior to
17 00:03:31,830 --> 00:03:43,440 the small little consolidation. And again, I'll give you some examples when we get past this boring part. But not all. Sudden price declines that move into a
18 00:03:43,440 --> 00:03:56,730 short term consolidation or bear flags. And obviously in mature bear trends or in higher timeframe, accumulation levels, price will post false bear flags. And
19 00:03:56,760 --> 00:04:06,870 obviously, retail traders will see this as a classic continuation sell pattern, but many times it will reverse. And again, to take away is understanding higher
20 00:04:06,870 --> 00:04:16,920 timeframe charts. And understanding the discount markets will assist in identifying when these are potentially false bear flags or when not to expect
21 00:04:17,100 --> 00:04:19,500 another leg lower, but in fact, have I.
22 00:04:25,980 --> 00:04:34,470 Okay, so for those that are unaware what a bear flag or bull flag is. This is basically a graphic depiction, I just simply did a Google on bull flag and this
23 00:04:34,470 --> 00:04:47,640 is one that came up that I agree with in terms of what it explains on how the price action should be viewed. Generally you'll see a price leg up and then
24 00:04:47,640 --> 00:04:55,650 there'll be a small little consolidation, that consolidation can go sideways. Or in this case, it could be slightly slanted lower, and then all of a sudden
25 00:04:55,650 --> 00:05:03,990 there'll be another impulse swing higher that would be equal to the first in impulse swing higher. So you have a measured move. The reason why they call
26 00:05:03,990 --> 00:05:13,950 these patterns bull flags is the first leg up in price. That would be viewed as the flagpole. Okay which is reason why it got its name that way. And then the
27 00:05:14,010 --> 00:05:25,710 flag portion is that small little consolidation slanting lower and and then you would measure that flagpole on the first leg up, and then add that to the move
28 00:05:25,830 --> 00:05:34,380 out of the consolidation. And that will give you your measured move. And while when I first started, I can admit to you to some of my grain trades and some
29 00:05:34,380 --> 00:05:45,090 might live cattle and live hog trades when I was trading commodities, they came by way of trading this simple pattern right here. It happened to occur when I
30 00:05:45,090 --> 00:05:53,850 had one hour stochastics divergence. And when it was in agreement, there was great the problem is, is I never really considered the higher timeframe charts,
31 00:05:53,880 --> 00:06:04,680 or what I understand now as a premium or discount market. Obviously, the same thing can be said just in reverse for, for bear flags, generally, you'll see a
32 00:06:04,680 --> 00:06:14,310 market drop off have a sudden decline and consolidation sideways or in this case, it can be a consolidation, it slopes up diagonally, and then another leg
33 00:06:14,460 --> 00:06:24,570 equal to the first price swing or impulse swing lower that measurement on that first leg lower if you add it to I'm sorry, if you subtract it to rather the
34 00:06:24,570 --> 00:06:34,590 breakout high and the consolidation that will give you your projected low. And again, when markets are in a nice strong trend, and they're not mature, and they
35 00:06:34,590 --> 00:06:44,820 still have more legs to go lower. Okay, this pattern is pretty, pretty consistent. The problem is when you're not aware of when the trend is mature, or
36 00:06:44,820 --> 00:06:55,170 where you're in areas of accumulation. In other words, the markets really coming under aggressive buying, Buy Smart Money, these patterns will materialize near
37 00:06:55,170 --> 00:07:03,930 the low. And you'll see a lot of folks see this as a continuation pattern. You'll you'll see it on Twitter, you'll see it on social media that there'll be
38 00:07:03,930 --> 00:07:14,700 a particular expectation to see new leg lower in price, but many times a won't go down. Or if it does, he'll just go down just a small little bit, and then
39 00:07:15,090 --> 00:07:27,180 reverse abruptly go higher. Now looking at another Google example. Okay, just give you a little bit more framework. These are not my charts, I just simply
40 00:07:27,180 --> 00:07:36,060 grabbed them off of Google and you can actually do Google searches on your own get a little bit more examples of what a bull flag and a bear flag look like in
41 00:07:36,060 --> 00:07:47,130 price action. But I liked this one here just for a quick an idea of what we would be looking for in order to get the flagpole measurement would be an adding
42 00:07:47,130 --> 00:07:55,320 it to or subtracting it from that consolidation that give us a price target. And that's great. Well, I'm not trying to teach you the continuation pattern here,
43 00:07:55,320 --> 00:08:05,670 because it's obviously pretty general knowledge, I want to teach on how the markets can actually give us these false patterns. And we can take advantage of
44 00:08:05,670 --> 00:08:19,560 that. So here we have a classic set up where the market has moved up, aggressively, suddenly moved up higher. And we have what we have a small little
45 00:08:19,560 --> 00:08:28,320 consolidation after that immediate rally up higher. When you see that obviously, the first thing comes to mind, if you knew a bull flag pattern is, well this is
46 00:08:28,320 --> 00:08:38,250 obviously a bull flag. And then you would measure the flagpole or the impulse price going up. And then you would add that to the consolidation area, and it
47 00:08:38,250 --> 00:08:45,750 would give you a projected high. So we would expect reasonably if we were just pre pattern trading or looking for continuation classic patterns, if you will,
48 00:08:46,200 --> 00:08:54,870 we would be looking for higher prices. The problem is if we're just looking at one timeframe, and just only focusing there, that's a problem, you have to have
49 00:08:54,870 --> 00:09:04,050 a certain measure of top down analysis. And using higher timeframe charts monthly, weekly daily, and at least a four hour but preferably a daily chart
50 00:09:05,340 --> 00:09:16,260 that will give us the the indications that there's going to be a little bit more information that needs to be considered. So when we see that, clearly, it's
51 00:09:16,290 --> 00:09:24,450 viewed as a classic bull flag. Okay, and if we were going back in time and a time machine, if someone would have given me this chart my first six to eight
52 00:09:24,450 --> 00:09:34,470 months of trading, I clearly would have expected this market to go higher based on just this simple pattern one. And unfortunately, like I said in the past,
53 00:09:34,860 --> 00:09:43,350 when I first started trading, everything was in a bull market. And I can only understand buying low and selling high I've never understood rather the the
54 00:09:43,350 --> 00:09:52,350 concept of selling short, my you know, my first year I just couldn't grasp it. So I would only be a buyer. But I can tell you as a new trader my first year I
55 00:09:52,350 --> 00:10:02,970 would have looked at this and consider this as a bull flag. Problem is that's what would generally end up happening. So Oh, clearly we see that this bull flag
56 00:10:03,360 --> 00:10:17,760 was the opposite. It gave us no advancement higher, don't think it did was just breached above a previous area of consolidation. So let's take a look about this
57 00:10:17,790 --> 00:10:28,980 specific area and what was behind the scenes that led to this overall price reversal. Okay, folks, let's take a closer look at this particular false flag.
58 00:10:29,940 --> 00:10:44,340 Okay, we have price showing a clear, classic bull pattern in here Bush four flag. But what would cause this market to break down like that? Why did it not
59 00:10:44,340 --> 00:10:54,540 continue and make its equal leg up here? Add it to the new move up? Why we Why didn't we get a measured move higher? Again, why did the bull flag fail? Well,
60 00:10:54,540 --> 00:11:03,000 let's take a look at things a little bit closer and let's focus primarily on the bodies of the candles and the price action first. Forget this wick for a second.
61 00:11:04,050 --> 00:11:15,540 Okay, and we're gonna look primarily at the body of the candle right in here. As price dropped lower, we rallied up tried to go a little bit lower again and
62 00:11:15,540 --> 00:11:23,790 finally ran through everybody that trades bull flags would have been excited about this move here breaking out. The only thing it did was trade just above
63 00:11:24,090 --> 00:11:37,650 this old high. Okay. If we were going to use this area right in here, we're going to note that and shade it within an area to highlight it and we're going
64 00:11:37,650 --> 00:11:48,570 to go out to a daily chart Okay, so we have the daily chart here. And what I want you to look at is we have price swing from this high down and then we have
65 00:11:48,570 --> 00:12:01,200 a retracement up. So as price was running up into that blue shaded area we had on a 15 minute timeframe we were inside of this big up candle which is a bearish
66 00:12:01,200 --> 00:12:16,140 order block. And we also have if we take our fib and we draw it from the high down to the low right here which is right before this price went up we can
67 00:12:16,140 --> 00:12:36,750 clearly see that we are in an area of distribution and what that means is that we are in an area of premium So all through here the market is
68 00:12:48,990 --> 00:13:00,930 in a premium market relative to the range we have this old high this old low so now what we know about the market now we're gonna drop down into a four hour
69 00:13:00,930 --> 00:13:16,800 chart so we're focusing primarily here and when we look at this down move in here we have a rally up creating a liquidity void and then we have another
70 00:13:16,800 --> 00:13:29,610 liquidity void going down midway through that is going to be the equivalent of what would be viewed as a bearish order block. So since we're in a premium
71 00:13:29,610 --> 00:13:42,150 market, where we should be seeing distribution, we have two areas at which the market created liquidity voids running up and running down. This entire range,
72 00:13:42,570 --> 00:13:54,480 okay is going to be viewed in in the scope of a bearish order block. So we'll be looking at like a mean threshold if we dropped down into a one hour chart, okay,
73 00:13:54,870 --> 00:14:06,840 so we have price coming down and right in here, we're going to look a little a little bit more detail by dropping down into a 15 minute time frame. Okay, we
74 00:14:06,840 --> 00:14:15,180 have the gap between the opening of this candle and the close of this candle right in here. Okay, so we're gonna focus primarily on that we're going to zoom
75 00:14:15,180 --> 00:14:29,670 in on a five minute chart to refine and you see this one up candle prior to the down move here. Now there's two candles going up right before the move lower.
76 00:14:30,750 --> 00:14:43,890 And this up move here with these up candles one and two. That only trades right back up into the institutional order flow of this low here. In this low here.
77 00:14:44,820 --> 00:14:59,760 The low on this candle comes in at 7714 The high comes in and 7714 So close them and look the liquidity void in here relative to what was offered the market was
78 00:15:00,000 --> 00:15:10,950 posting bullish prices or offering higher for the buy side, when it gapped down through it, they offered it one more time up here to be sold, filling in that
79 00:15:10,950 --> 00:15:23,880 range. So come this low over here, cut through this candle. And you'll see to the XE IP to filled in that range. So we have one, two candles. If you take
80 00:15:23,880 --> 00:15:33,900 those two candles, and you measure that range from the body, blow to the body high between the two candles, you get equilibrium right here, which is that
81 00:15:33,900 --> 00:15:45,480 level I have highlighted, which is also the bottom of that last candle on a five minute timeframe. So that's why that levels here. Okay, so by having that level,
82 00:15:45,870 --> 00:15:57,300 and also I'm framing this swing high here. So we have a little bit of a fair value gap right there, you can see price, creating this potential bull flag here
83 00:15:57,300 --> 00:16:04,530 and it starts to come up. But what is it really dealing, it's only clearing out the bodies of the candles over here. And this big wick that we saw on a 15
84 00:16:04,530 --> 00:16:13,920 minute timeframe is not being considered at all. But when price starts to break down, all we have to do is go back in and look at price action here. Look at the
85 00:16:13,920 --> 00:16:23,880 up candles, okay, the up candles start with their bodies and the wicks on the low end. That's where all the sensitivity on selling short will be. So when we
86 00:16:23,880 --> 00:16:35,190 get into areas of heavy distribution like this, and we see a quick rally up in a consolidation or slight dropping lower, which would look like a bull flag, we
87 00:16:35,190 --> 00:16:44,520 don't see that as a bullish scenario, what we're doing is is we're looking for it to create a false move in break lower. Now one of two scenarios can happen
88 00:16:44,520 --> 00:16:53,850 one, you can get a turtle soup scenario where it'll start to come up, guy and then start to break down. That's the easiest one to trade because you'll
89 00:16:53,850 --> 00:17:01,650 actually see it go up, get people tripped up thinking it's gonna go higher, and then it rolls over. Once that happens, you want to sell the first return back to
90 00:17:01,650 --> 00:17:22,110 a bearish order block that comes in way of the opening comes in 7697. The high comes in at 7697. That's where your short would be. Okay, once you get that you
91 00:17:22,110 --> 00:17:33,420 put your stop above what would be considered a bull flags high that wick that would be that would be your your risk. So in terms of risking a lot of pips,
92 00:17:33,420 --> 00:17:41,490 it's not much at all. And you would just simply wait for it to come back down to trade and close in first objective would be to close the liquidity void that the
93 00:17:41,490 --> 00:17:48,150 bull flag creates, or the false flag that it creates, rather. And we go up to a 15 minute timeframe.
94 00:17:51,660 --> 00:18:05,010 You can see, even on this timeframe, we have the last up candle, right before it starts trading lower. The opening on that candle is 7697 against the low as
95 00:18:05,010 --> 00:18:15,750 well. And obviously we've already shown that the high is 7697 here on this candle here to price breaks down closes in its boy goes right to the bearish
96 00:18:15,750 --> 00:18:25,050 order block, and then we can see that as a sell off. Okay, so what am I showing you here, I'm showing you that there's going to be times when we break our
97 00:18:25,050 --> 00:18:35,550 market down from a top down perspective by defining the market in terms of discount or premium. Okay, and understand the higher timeframe, as we shown with
98 00:18:35,550 --> 00:18:45,900 the daily chart here. And I'm walking our way down to a lower timeframe that we can execute on we can use the premise that other traders are going to see this
99 00:18:45,900 --> 00:18:53,730 as a bullish scenario. So it's really a sentiment play, in addition to institutional order flow and a higher timeframe. So we're able to see what
100 00:18:53,730 --> 00:19:03,390 everyone else with a retail minded perspective would see here in terms of continuation on the upside. But when we start to see it to break down, we know
101 00:19:03,390 --> 00:19:12,540 we can get right back in here and sell it short rate at that moment there. And then quickly price moves away aggressively and then closes in its void right
102 00:19:12,540 --> 00:19:24,180 here and then ultimately trades up one more time closing in this small little liquidity void here and ultimately moving lower. So let's take a look at an
103 00:19:24,180 --> 00:19:39,270 example of a bear flag. That would be a false flag and how that would translate into higher prices. Okay, we have one more example here. Price has a sudden
104 00:19:39,270 --> 00:19:48,870 decline. We're an existing downtrend here. Okay, price goes into a small consolidation and look we're having that saw consolidation sloping higher. Okay,
105 00:19:48,870 --> 00:19:59,550 by all intents and purposes, this would be deemed as a classic bear pattern, okay, or Bear Flag continuations. So one would reasonably expect to see a move
106 00:19:59,550 --> 00:20:15,960 from This high, down to this low from this high projected lower. So we could potentially see a move to about 7355. If we were looking at pure chart, chart
107 00:20:15,960 --> 00:20:26,790 patterns in the form of classic patterns, and problem is the markets traded down into 7442. So what's significant about that? Okay, well, I'm going to show you,
108 00:20:27,420 --> 00:20:38,940 by having our hard timeframe perspective, we're going to highlight this little area, okay, that's where a bear flag is, or our pseudo bear flag. And I want you
109 00:20:38,940 --> 00:20:45,420 to see what's actually happening here. When the market trades into that level, we're gonna get to high timeframe, but I want you to see what happens right from
110 00:20:45,420 --> 00:20:59,010 the price at this point here. Suddenly, that bear flag doesn't look so bearish. Okay, so by having this, let's go in here and take a look at the daily chart.
111 00:21:00,510 --> 00:21:10,230 Okay, here's that area where that bear flag will appear. Like we were just showing on a one hour chart, look at the bodies of the candles over here. Okay,
112 00:21:10,260 --> 00:21:20,910 all these wicks, trading down here, again, all the heaviest volumes inside of the wicks. So if we take our area we just highlighted, keep it where it's
113 00:21:20,910 --> 00:21:32,160 anchored at, for the one hour set up, we're identifying as a false Bear Flag, actually identifying all the price action below these lows. Okay, now I'm not
114 00:21:32,160 --> 00:21:43,140 using the wicks, I'm using the bodies of the candles, okay. And the expectation is this movement here, because we're now coming back down into this area for the
115 00:21:43,140 --> 00:21:55,440 first time in a couple months, or a month and a half here on the Ozzy. So we're going one more time back into this area below the lows in terms of their bodies
116 00:21:56,010 --> 00:22:06,660 of the candles, not the wicks. Okay, so we ignore all these wicks, we know that the bulk of the volume is seen in the bodies. So this run down below here was
117 00:22:06,660 --> 00:22:16,110 really just making a run one more time for this stops below these candles. So if we're seeing that on a daily chart, we have to consider that when we go back
118 00:22:16,110 --> 00:22:25,170 into the hourly chart. So when the market starts creating that pseudo bear flag in here, we don't see that as a bear flag, we actually start going in and
119 00:22:25,170 --> 00:22:36,720 looking for reasons to expect higher prices now we don't just simply go by it as the market starts to rally we want to wait for a swing high to be created and
120 00:22:36,720 --> 00:22:51,030 violated on the upside. Okay, we get that here we have a swing high market trades up through it here comes back down to the last bearish candle right here.
121 00:22:51,480 --> 00:23:00,090 So we can take that idea and not look at it as a bear flag but look at it as a buying opportunity. So we could be a buyer right here with a stop below the
122 00:23:00,090 --> 00:23:02,460 flags low. So we could be doing this
123 00:23:08,700 --> 00:23:22,470 you start moving below there you're getting long at 7470 We'll call it 7470 and the expectation would be we will be looking for a range fill in of all these
124 00:23:22,470 --> 00:23:38,490 down candles. So it looks for upside objective here last up candles body and then we will be looking for the stops above these equal highs that clean level
125 00:23:38,490 --> 00:23:41,760 here plus we have another
126 00:23:48,000 --> 00:24:04,140 bearish order block here and then one more right in here then we have equal highs again so we can be looking for that for a liquidity pool and we can we can
127 00:24:04,140 --> 00:24:17,100 look up here for another objective if we want to look for a really long term type scenario. Okay, so going forward price response off that level rather
128 00:24:17,100 --> 00:24:31,140 handsomely comes back a little bit retracement just to populate more buying in here. Price comes up sweeps out these equal highs. We're here to these highs in
129 00:24:31,140 --> 00:24:44,880 here were cleared out the high on this candle comes in at 7568. The high on this candle here comes in at 7573. So we cleared those stops out here. That's what we
130 00:24:44,880 --> 00:24:55,890 saw a little bit of a rejection here. And ultimately, we see price rally up into closing this range here and then blowing through its high and then the next area
131 00:24:55,890 --> 00:25:09,540 of liquidity would be this liquidity pool here. It trades Read that here, swallow consolidation again, and ultimately seeing that run up into that
132 00:25:09,540 --> 00:25:16,260 rejection here. So there's that bearish order block we finally looked at, and it swept through that as well. And ultimately just for good measure cleared out,
133 00:25:16,260 --> 00:25:29,130 the old highs are here, okay? So it's not the fact that we're looking for chart patterns. Okay, and especially if the idea of looking for continuation actually,
134 00:25:29,130 --> 00:25:37,230 I just scrolled over didn't even realize that we had one more here, okay, price trades down creates a small consolidation slightly higher, that would be viewed
135 00:25:37,230 --> 00:25:48,000 as what a bear flag, okay, what we're actually going to do is we're going to wait for a swing high to be violated, okay, and we have a swing high here. Even
136 00:25:48,000 --> 00:25:53,100 though it creates a lower low, it would have been looking like, oh, it's it's going to keep going lower, I will certainly put the brakes on and goes higher,
137 00:25:53,850 --> 00:26:04,410 it will have swing high Wiley, there. So we get down to the last down candle right here. draw that out in time, there it is, there's your buy. In issue run
138 00:26:04,410 --> 00:26:13,500 up higher. Prior to the down move, we just identified bear flag that was a suspect. Okay, it's a false Bear Flag. So when I look at price action, this is
139 00:26:13,500 --> 00:26:22,890 what I'm going to give you as a takeaway. When I'm looking at price action, I'm looking for reasons why other traders will view the opposite side of the
140 00:26:22,890 --> 00:26:33,420 marketplace. So I'm not always just looking for what would make me take the trade. I'm also looking for the marketplace. This suggests to me how retail
141 00:26:33,420 --> 00:26:42,750 minded traders are going to view things in the form of classic chart patterns in the form of indicators. Okay, and we'll talk a lot about that later on in this
142 00:26:42,750 --> 00:26:53,340 mentorship. But for now, I want you to take away the the study of going back through old data, go through your charts, and find areas where bear flags and
143 00:26:53,340 --> 00:27:03,600 bull flags were basically looking as if it would call for lower prices for a bear flag, and it reversed and went long. And look for opportunities where the
144 00:27:03,600 --> 00:27:14,790 market showed a clear example of what would be viewed as a bull flag, but it creates a high. And what happens is actually is this the market goes into a
145 00:27:14,790 --> 00:27:31,290 period of after a rallies up or it moves down for a period of time. If we have to market create a run up que se it just creates a quick rally up then in that
146 00:27:31,320 --> 00:27:42,510 after that rally, the market will go into another consolidation. Okay, think about it that now price delivery has been rapid on one side of the marketplace,
147 00:27:43,380 --> 00:27:51,030 to the markets gonna go into consolidation is going to pause for a couple periods a nap period is going to be relative to what it needs to do. And you
148 00:27:51,030 --> 00:27:57,930 never know exactly how long that time period is, which again, I've already proven we don't care, we're just going to wait for the indications the market is
149 00:27:57,930 --> 00:28:05,040 going to want to reach for a specific level of liquidity above the marketplace or below the marketplace. So if we get that big run up and it starts
150 00:28:05,040 --> 00:28:13,770 consolidating and can consolidate, going slightly lower in a diagonal pattern like a classic bull flag would be what's actually happening is the rally price
151 00:28:13,770 --> 00:28:23,040 up to get traders thinking what is going to keep going higher than they pause it but what many times you'll see is the market will just do this
152 00:28:31,590 --> 00:28:52,500 just make a strike a slightly short term, higher high and then collapse. This is the basis of turtle soup. And you see that here. Okay, we have a consolidation
153 00:28:52,500 --> 00:29:04,650 here. Price rallies up and Anna falls through okay. This scenario is seen here, price drops down consolidates it drops lower, so this would be like this
154 00:29:16,590 --> 00:29:30,030 okay, the pattern would be a decline, consolidation. Initial Leg Lower just by a little bit, this short term low violate these lows right here. So when we see
155 00:29:30,030 --> 00:29:39,960 that it's going to look like it's been validated for this bear flag to go lower and have a projected measured move lower. But in fact, all it's doing is taking
156 00:29:39,960 --> 00:29:50,700 up these short term lows here and then reversing and running the other way, which is again the basis of turtle soup buy and you see that taking place right
157 00:29:50,700 --> 00:29:50,970 here.