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26-ICT Mentorship Core Content - Month 4 - Reinforcing Liquidity Concepts and Price Delivery

Last modified by Drunk Monkey on 2022-09-09 12:49
1 00:00:36,060 --> 00:00:47,220 ICT: Okay folks, welcome back this is module two of December 2016 It's teachings from the ICT mentorship, we were talking about reinforcing liquidity concepts
2 00:00:47,220 --> 00:00:57,810 and price delivery okay first on the menu today is going to be external range liquidity the current trading range we'll have buyside liquidity above the range
3 00:00:57,810 --> 00:01:15,150 high the current trading range will have sellside liquidity below the range or low runs on liquidity seek to pair orders with pending order liquidity which is
4 00:01:15,150 --> 00:01:27,510 in form of liquidity pool external range liquidity runs can be low resistance or high resistance in nature you as a trader you want your trades to be in low
5 00:01:27,510 --> 00:01:42,030 resistance conditions. In other words you don't want to have any resistance in your path of profitability. Secondly, we have internal range liquidity when the
6 00:01:42,030 --> 00:01:53,130 current trading range is likely to remain liquidity voids will fill in and this is associated with GAP risk in current trading range is likely to remain fair
7 00:01:53,130 --> 00:02:03,840 value gaps will also fill in and this is attributed to gap risk. Now gap risk is nothing more than simply when the market quickly re prices to a level where
8 00:02:03,840 --> 00:02:12,930 there was very little or no trading signal that's when we see it liquidity run to close in a range where there's only like one candle, real long candle Usually
9 00:02:12,930 --> 00:02:23,490 that's a gap fill. Okay and whenever you're in a long and you have a big gap underneath you that's gap risk. So the market sometimes will maintains reprice
10 00:02:23,490 --> 00:02:33,210 aggressively to close in those ranges and that's what you see stuff to do as a as a trader we look for them as opportunities waterblocks inside the trading
11 00:02:33,210 --> 00:02:46,140 range will be populated with new buys and or sells market maker buy and sell models will form inside trading ranges. Okay, folks, let's take a look at
12 00:02:47,130 --> 00:03:04,380 external range liquidity internal range liquidity and the difference between two and Alekan utilize both Okay, we have a old high back here okay, and we have an
13 00:03:04,380 --> 00:03:16,080 old area of consolidation or equilibrium it's about halfway from the low up to this high price sweeps above this old high here and that will be a form of
14 00:03:16,080 --> 00:03:31,290 external range liquidity because outside the range from this high in the low it's formed so that was the range prior to the new breakout above this high seen
15 00:03:31,290 --> 00:03:44,970 here. So price at this point, we know we have the equilibrium down here. But more importantly we have clean lows right below there. So we look for a move
16 00:03:46,680 --> 00:03:48,690 that could potentially come down to that level
17 00:04:03,900 --> 00:04:17,310 Okay, and price starts to drop trading down. Now what it's doing is it's pulling back inside of all these up candles. Okay, so once we click on the old high, we
18 00:04:17,310 --> 00:04:26,040 would expect some measure of retracement and when the retracement occurs where we're looking for it's where's the most logical area for it to pull back down
19 00:04:26,040 --> 00:04:39,150 into now if you look at this candle here we have a previous up candle rather large candle. Then we have this candle has a wick. So at one point this candle
20 00:04:39,150 --> 00:04:49,170 opened, traded lower. So there was a pass through on the range between both these candles in this area. So the delivery price was on the up move here and
21 00:04:49,170 --> 00:04:58,800 then down this one even though it's an up close, it was offered twice all through that range. So at the top of this candle here and it's it's open on the
22 00:04:58,800 --> 00:05:03,390 next one. That's what I would expect to see a measure of short term bounce.
23 00:05:08,880 --> 00:05:21,810 Okay, and price trades here stalls a little bit and goes right through it comes back retest that same level in here, okay, right in here, and ultimately comes
24 00:05:21,810 --> 00:05:32,760 down and clears out these equal lows. Now what I want you to look for is, at this moment right here, where is the next level of liquidity because we've
25 00:05:32,790 --> 00:05:48,630 already traded below this low here. Now in reference to the low here, and the high up here, which we now have to redefine, has the high stops below these lows
26 00:05:48,630 --> 00:06:02,640 in here, would that be represented in the form of external range liquidity or internal range liquidity? In the context from this high to this low, its
27 00:06:02,640 --> 00:06:16,050 internal range liquidity, but from this low to this high, its external range liquidity, because it's piercing it down here, once we created the range from
28 00:06:16,050 --> 00:06:29,610 this low to this high, so we expect this range to be given up and run the stops out here. Once that's done, if we are going to go higher and bounce higher, or
29 00:06:29,610 --> 00:06:38,190 trade higher, and we make a new high here, we don't ever know that we look for the areas of liquidity. So we know there's a up candle here
30 00:06:44,970 --> 00:06:56,010 so we can reference that low. The up candle, not the black one here did that candle that opening a measuring that opening price and extending in time. And
31 00:06:56,010 --> 00:06:57,270 what else do you see on this chart
32 00:07:02,580 --> 00:07:14,730 see this candle, swig in this candles wick in between their price was only delivered on the downside. So we have a fair value gap. So if we start to trade
33 00:07:14,730 --> 00:07:23,850 higher, you can expect to see the market wants to reach up into that 106 50 level. If it trades through this green candle or up candle, it's going to want
34 00:07:23,850 --> 00:07:50,250 to reach up into the high of this candle 114 55 and the low at 115 95. So we can use 115 91 1580 Or we could use 114 35 or 114 60. Any one of those those would
35 00:07:50,250 --> 00:08:00,840 be nice, but this would be what from this high down to this new low if we see I'm referencing the lows over here that was cleaned out now that I'm drawing it
36 00:08:00,840 --> 00:08:09,150 there anything I'm extending out, keeping you mindful that's the range because we cleared up these lows, but this new low and now this highs the high so the
37 00:08:09,150 --> 00:08:25,530 range that we're trading in now is this low in this high. So if we see price trade up, we would expect it to reach up into one to 625 if it gets through the
38 00:08:25,530 --> 00:08:40,860 up candle, we will be expecting it to trade up into this area here close in that range. And then ultimately it could trade as high as this candles low 118 86 So
39 00:08:40,860 --> 00:08:44,610 we'll call it 118 85 to one a month 1890.
40 00:08:51,480 --> 00:09:06,870 Okay, so inside this range from this low to this high, we will be aiming for internal range liquidity price trades all the way up right into the shaded area
41 00:09:06,870 --> 00:09:22,320 here. Right there. Now because we're looking at a monthly chart of the Japanese yen we're going to drop down into a daily timeframe, we're going to see how
42 00:09:22,320 --> 00:09:36,300 those levels start we're gonna drop into a weekly chart. We're gonna show how these levels affected price action and the delivery. So we have that fair value
43 00:09:36,300 --> 00:09:46,980 gap. A little bit more refined, you can see the wick we're here and the wicker here so we can adjust that and refine it a little bit more. So we can have the
44 00:09:46,980 --> 00:09:54,780 exact area which price will look to fill in. It's only when this down candle price was delivered on the sell side. No upside has been offered until now we're
45 00:09:54,780 --> 00:10:07,860 starting to see it. Okay, so every time the market creates a a trading range going lower, you want to mark off the previous high and the new low. And when
46 00:10:07,860 --> 00:10:15,570 price trades back up, you're trading inside that range. So if you trade short at a bearish order block, which is the last up candle, that's going to be a return
47 00:10:15,570 --> 00:10:27,210 to internal range liquidity. But you're gonna be looking for external range liquidity to exit on, which is to stop below the low price runs down hits that
48 00:10:27,210 --> 00:10:39,510 that's where you look to exit. Predominantly, my entries are internal range liquidity entries, with exits at external range liquidity. In other words, I'm
49 00:10:39,510 --> 00:10:48,780 buying inside the range and selling it outside the range once it breaks it. If I am in sync with the marketplace, and I know what direction it wants to go, and
50 00:10:48,810 --> 00:10:56,340 we're framing that based on the monthly chart here, so you're gonna see the benefits of doing what I'm doing here. If I'm looking for it to go higher,
51 00:10:56,550 --> 00:11:07,920 relative to the monthly chart, anytime that the market comes down below a short term low, I can be a buyer that on short term, external range liquidity or
52 00:11:08,220 --> 00:11:19,560 buying up stops, but the expectations range will continue going higher seeking monthly internal range liquidity in the form of this fair value gap. And I'm
53 00:11:19,560 --> 00:11:29,580 probably confusing some of us listening very attentively, I'm sure. But the point is, he wants you to understand on a higher timeframe where the market
54 00:11:29,580 --> 00:11:40,980 wants to go, you'll be able to frame your trade setups as we drop down into a daily, okay, so we can see the daily chart in here, market creates small area of
55 00:11:41,070 --> 00:11:48,780 institutional order flow comes down hits that same order block rallies through now watch what happens in the grand scheme of things and the monthly range, we
56 00:11:48,780 --> 00:12:02,250 are trading every time we create a new high, higher, high higher, here, here and here each time make a new high, that is a run on external range liquidity on
57 00:12:02,250 --> 00:12:15,060 this timeframe being the daily. But on the monthly chart, it's still internal range liquidity, because you're just inside of a larger monthly range. When we
58 00:12:15,060 --> 00:12:26,430 understand what the monthly and the weekly are trying to trade to, when we look at daily setup like this, this creates the recipe if you will, low resistance
59 00:12:26,610 --> 00:12:35,910 liquidity runs. Because you're trading in sync with a monthly where the monthly will most likely want to see price go up into. So every time a run above an old
60 00:12:35,910 --> 00:12:52,530 high is expected that's going to be framed as a low resistance liquidity run. Every time we see this, you can see how price reacts to it. Very little
61 00:12:53,160 --> 00:13:08,040 resistance on the part of price to get through these levels. Because it has an agenda, it wants to get to a specific price level relative to a higher timeframe
62 00:13:08,040 --> 00:13:17,130 because the funds trade on a monthly or weekly basis. So if we can keep that in context and frame our trades with this idea, we will always be able to classify
63 00:13:17,130 --> 00:13:26,340 a trade whether it's a high resistance or low resistance liquidity run. So we dropped down into a four hour chart, we can see the highs being ran out every
64 00:13:26,370 --> 00:13:36,780 high has very little difficult to get through it. Because it's framed on low resistance liquidity runs based on the higher timeframe monthly. You can even
65 00:13:36,780 --> 00:13:40,680 see the range at which the monthly has that fair value gotten
66 00:13:42,870 --> 00:13:53,880 this highs broken through no problem. This high here broken through no problem. This high here broken through no problem that was a small little consolidation.
67 00:13:54,420 --> 00:14:04,050 But ultimately it runs aggressively and it's going to reach for these highs here. I get questions so many times about how I know what the market is going to
68 00:14:04,050 --> 00:14:14,220 be reaching for us for specific buy stocks when we do our live session. This is how I do it. I use the higher timeframe institutional order flow to frame out
69 00:14:14,610 --> 00:14:23,850 where internal range liquidity is and where external range liquidity is where's the buy stops? And what kind of stop or what kind of entry my using and how does
70 00:14:23,850 --> 00:14:38,850 it align with the higher timeframe. The market trades down, clears out some stops in here gapped down below on the election closes in this range back down
71 00:14:38,850 --> 00:14:50,460 to a previous bullish order block rallies through and hits the old high. Over here, all these highs are cleared out there and ultimately takes off and runs
72 00:14:50,460 --> 00:15:02,040 out another old high which we'll zoom out in a moment see, okay all through here and ultimately trades up into that monthly fair value gap. Once we cleared this
73 00:15:02,040 --> 00:15:14,460 high here, and we cleared this high, here, we came back and created a gap, we created a gap here came down and closed in the gap. And then ultimately
74 00:15:14,490 --> 00:15:26,880 aggressively ran right up into that must be fair value gap. So what I want you to look at is every single time to market all through here, every single time it
75 00:15:26,880 --> 00:15:39,000 gave a retracement This is a four hour chart. So we're gonna go down into a 15 minute chart and lens days. Okay, and I want you to look at how price responds
76 00:15:39,060 --> 00:15:52,410 when it gives you a new range. Okay, got a low here, and a high price trades down into the previous order block. Whereas external range liquidity here. So
77 00:15:52,410 --> 00:16:01,140 you're buying an internal internal range liquidity with expectation, I'm going to see price move to the outside of the range created by this little move here.
78 00:16:01,410 --> 00:16:11,370 So that's your range you're trading in for the setup. The exits here, but do you collapse the entire trade? No. You're looking for the ranges to take out highs.
79 00:16:12,390 --> 00:16:21,810 All these highs in here. We get another rally and then retracement. Okay, so it's the last down candle right before the move, price trades back down into it.
80 00:16:21,840 --> 00:16:34,740 They populate more buys on that order block. Where's the external range liquidity at about this high here. And over here. It runs through it. Small
81 00:16:34,740 --> 00:16:46,110 consolidation, rally away comes back down into down candle, repopulate more buy orders, what's it going to run for that monthly fair value? Yeah, look at the
82 00:16:46,110 --> 00:16:53,550 reaction once it gets up in there, lots of profit taking lots of it right in here ultimately comes back and starts to trade with the higher I think it's
83 00:16:54,540 --> 00:17:06,210 indicative of probably seeing a little bit more rally when we open up on Sunday. But going back even further, you can see every single time the market creates a
84 00:17:06,210 --> 00:17:17,760 nice impulse pricing, we have a nice impulse price swing here, comes back down, bullish order block. External range liquidity comes down and hits this order
85 00:17:17,760 --> 00:17:26,640 block again here rallies through comes back consolidation eventually presses through clearing out to external range liquidity here are the biceps above the
86 00:17:26,640 --> 00:17:40,890 highs. The range that's created from this low up to this high the down candle be trades back into here. Rallies away. Now, all this is we're trying to sit in if
87 00:17:40,890 --> 00:17:49,440 you're a position trader. But ultimately, if you give it time, all it's going to do is recover, it's going to return back to a previous order block here like it
88 00:17:49,440 --> 00:18:01,410 did here and recapitalize more buyers because it's a long term objective to get up to here. So they're going to have to buy some here, buy some more here, let
89 00:18:01,410 --> 00:18:08,670 some time goodbye and come back down to it again, buy more of it again and one more time and then ultimately runs away because they have their position built
90 00:18:09,660 --> 00:18:14,820 averaging around 113 50 to 113 25. In that area
91 00:18:20,700 --> 00:18:34,680 many many examples of low resistance looking liquidity runs on the dollar yen, we have a low price rallies up comes back down previous order block run from
92 00:18:34,680 --> 00:18:44,790 this low to where external range liquidity buy stops, runs about here. Same thing here. We have a low price runs away from this consolidation. Why am I not
93 00:18:44,790 --> 00:18:54,030 using this low Michael, because this is a consolidation in here. price moves away from that comes back down hits the previous order block here we're isolate
94 00:18:54,030 --> 00:19:06,390 what's going on for external range liquidity here. Running okay, you're looking to buy with internal range liquidity or at a bullish order block inside of a
95 00:19:06,390 --> 00:19:17,520 previous range in trying to take profit at an old high or above it while you're in sync with the higher timeframe directional bias based on institutional order
96 00:19:17,520 --> 00:19:26,850 flow, like we described earlier with the monthly ranges and looking for this fair value gap on the monthly chart. Because just like any other timeframe, the
97 00:19:26,850 --> 00:19:36,630 markets going to want to efficiently deliver price if there's no price trading up in this fair value gap that's been shown on the monthly chart that we have
98 00:19:36,630 --> 00:19:47,430 shaded up here and I guess it's like the orange red color the bigger one dry price up to that level. So anytime we can create a new buying opportunity that
99 00:19:47,430 --> 00:20:00,540 are going to build more of a position on nice liquidity void and here, price comes down fills that in aggressively ones away the range here from this well up
100 00:20:00,540 --> 00:20:09,120 to this high comes back down retrace back into the bullish order block by on internal rings liquidity or bullish order block with the expectation of
101 00:20:09,120 --> 00:20:22,560 unloading external reigns liquidity above the range high here, price trades above it here many many examples almost two or three a week. But you can see the
102 00:20:22,560 --> 00:20:31,110 setups they offer us an opportunity and even on a pair I don't even like to trade the dollar yen we have a range here from low up to this high trades back
103 00:20:31,110 --> 00:20:42,270 down to poor who is bullish order block you buy here with the expectation of seeing range expansion to exit on a external range liquidity or buy stock.
104 00:20:42,990 --> 00:20:56,700 Because we're looking for buys only. We're gonna be looking for anytime impulse price swings up, then a retracement back down into a previous order block. If we
105 00:20:56,700 --> 00:21:07,590 don't see any ranges that create new buying opportunities, we can target lows, so you can go through the marketplace and find all of the swing lows and wait
106 00:21:07,590 --> 00:21:28,530 for price to trade through them on the downside. And when they do that they're doing what picking up orders to accumulate new lungs, like you see here, right
107 00:21:28,530 --> 00:21:28,920 here
108 00:21:35,550 --> 00:21:48,450 here any other time it's a rally away comes back to produce bullets or block rallies away comes back to the previous order block down into a previous order
109 00:21:48,450 --> 00:21:58,950 block more consolidation takes this stuff, and then runs above claim these equal highs out that need to draw this and authority they're equal lows takes the
110 00:21:58,950 --> 00:22:11,040 stops rise away. So the type of trader you're going to be is going to be based on what you see easily in the charts, you're gonna see either turtle soups, and
111 00:22:11,040 --> 00:22:21,360 you're gonna be looking for buying of sell stops or selling by stops. Or you're gonna be looking for a return back to fair value where you're looking to trade
112 00:22:21,360 --> 00:22:33,060 inside the range or buying internal range liquidity. And by framing the marketplace in either one of those two disciplines, you'll have no problem going
113 00:22:33,060 --> 00:22:42,660 in and finding setups. It's not that you have to find a set up every single day that you will find a set up once a week. That's all you're looking for. You're
114 00:22:42,660 --> 00:22:53,670 looking for one setup per week. So I'm gonna zoom out to the hourly I'm gonna scroll back from the time at which price they trade up into the objective based
115 00:22:53,670 --> 00:23:08,700 on the monthly chart. We had a nice buying opportunity here on Monday. And it was a Thursday buy as well. We have a Monday buy a nice looks like a crossover
116 00:23:08,700 --> 00:23:25,980 into Tuesday. Nice buying opportunity here. Definitely a Wednesday buy in the previous order block here nice buying on Tuesday here on this week. Nice buy on
117 00:23:26,640 --> 00:23:40,020 Tuesday here and on Thursday. This is the election so we're not gonna talk about that when we were on the sidelines for that period so we would not have been
118 00:23:40,020 --> 00:23:52,560 looking for anything. Okay, so we have a nice little bio Monday turn back to previous bowls or block and then we have a Wednesday by scenario in here as well
119 00:23:57,060 --> 00:24:08,520 running a stops here on a Wednesday. So think about this. If you know your higher timeframe monthly chart is calling for a run higher on price. And we
120 00:24:08,520 --> 00:24:20,190 talked about this months ago when dollar main bullish and DOLLAR YEN should be going higher. And if we know that there's a retracement taking place or a
121 00:24:20,190 --> 00:24:29,520 correction if you will and the markets trading lower our our mind shifts to okay where are the sell stops that are reaching for it because underlying the market
122 00:24:29,520 --> 00:24:40,740 pinnings are bullish for dollar yen. So if the markets predisposed to go higher, but it's dropping, we don't say okay, well, I'm not looking at depth here. Or
123 00:24:40,740 --> 00:24:50,460 I'm not looking at that market. What you should be doing is is okay, I'm gonna be looking for external range liquidity on the timeframe I'm using right now is
124 00:24:50,460 --> 00:24:58,980 the hourly chart you've been looking for anytime the markets trading lower if it's trading lower. Where's the lows? It's trying to breach? Where's it gone
125 00:24:58,980 --> 00:25:11,040 below here? are in here. So if we know that they're going to be expecting what a reaction, they're quick reaction, why not just hang down there and just meander
126 00:25:11,040 --> 00:25:17,880 around. We want to see it go down there and then show willingness to go back away from it. When it does that it's tipping your hand, then you just wait for a
127 00:25:17,880 --> 00:25:28,170 bullish or block, it won't, it won't always happen right away. But this one gave one that's pretty, pretty nice. It came created a down candle. It was created
128 00:25:28,770 --> 00:25:38,310 with this Calum preaching this candle is high. So now this down candle becomes a bowl shorter block. So anytime we trade back down into the range, which is here,
129 00:25:38,910 --> 00:25:47,850 who can be a buyer, but this new down candle here, okay gives us another opportunity to expect another return back to this candle, which it never does
130 00:25:47,850 --> 00:25:50,040 here. But it creates another down candle here.
131 00:25:51,360 --> 00:25:58,530 Who actually hits it here. So there's a buy, so you had to wait a little bit. It's only hours each one of these candles is an hour. So the very next day, you
132 00:25:58,530 --> 00:26:08,310 get another buy here. And here we see price go below this low. runs the stops out. It runs the stops. Okay, there's a stay down there. Now it quickly runs
133 00:26:08,310 --> 00:26:16,800 away. Okay, now we wait, what do we wait for price to come back down until the last down candle? Here, we look for return back to that range. Does it want to
134 00:26:16,800 --> 00:26:27,060 run after takes this low? Certainly once the run runs higher. And every time it takes out a new high. It's showing willingness to go higher. It's giving us a
135 00:26:27,060 --> 00:26:38,370 confirmation that there's underlying strength in this pair. Even if there's going to be like steep declines like this. This is all on heels going into the
136 00:26:38,370 --> 00:26:45,870 election again. That's I can't stress this enough. That's the reason why I was on the sidelines the entire first two weeks of November I just didn't want to be
137 00:26:45,870 --> 00:26:54,270 trading because of the potential fallout or the uncertainty. And that's okay with me. I have no problem. You being on the sidelines for a short period of
138 00:26:54,270 --> 00:27:05,490 time. It allows me clarity. We had a really nice spot here on Wednesday of that week. I'm just pointing out the salient price swings that took place each week.
139 00:27:06,090 --> 00:27:16,410 We have a nice pie on Wednesday here. And we had a nice pie on one Friday for position entry. Nice retracement here real aggressive retrace. And that was we
140 00:27:16,410 --> 00:27:32,310 don't know what's over here yet. But when price dove down like this down to 120, what's it looking for to the left? Whatever they're returning back to this
141 00:27:32,370 --> 00:27:53,700 level, we're here. Right there. Change that bullish order block. This is a show wanting some more rally up. To every week, there's been one setup. In here we
142 00:27:53,700 --> 00:28:01,710 saw price rally away comes back down to the previous order block and rallies through. It's not that you're trying to capture every piece of the weekly range.
143 00:28:01,710 --> 00:28:09,390 That's not what I mean, that's not being illustrated here. What I'm showing you is is how you can find one set up, it doesn't require you to have the full
144 00:28:09,450 --> 00:28:18,240 entire weekly range, we'll go into discussions about how you get the weekly range. But for this teaching here, I want you to think about how you can frame
145 00:28:18,270 --> 00:28:28,320 the larger timeframe where the market should be going. And in how it helps you define what a low resistance liquidity run would be. Versus a high resistance
146 00:28:28,320 --> 00:28:41,640 liquidity run. All of this area down here is where the market traded down into on a monthly chart, clearing out that equal low. And we'll leave that little
147 00:28:44,820 --> 00:28:58,260 area there on the chart. It's all down in here once you cleared all this out. All these lows were cleared out in here in price rally up aggressively. Okay, so
148 00:28:59,610 --> 00:29:09,300 when we take these ideas in the higher time frame, and we transpose them onto the lower timeframes every time we expect to see the market rally. What we're
149 00:29:09,300 --> 00:29:17,520 looking for is a willingness to have very little resistance because the underlying market pinnings are bullish on a higher timeframe. So if the monthly
150 00:29:17,520 --> 00:29:25,740 charts bullish, there's going to be no problem at all trying to smash through short term highs because the market is going to be really driven by higher end
151 00:29:25,770 --> 00:29:37,710 money to the monthly chart being the key player in your trades on framing. low resistance liquidity rungs where's the marketplace seeking to go on the monthly
152 00:29:37,710 --> 00:29:48,360 chart? If you can't ascertain where the markets going on a monthly is simply dropped down until weekly chart and by dropping down until weekly. You can still
153 00:29:48,360 --> 00:29:57,960 see these areas at which the market should be inclined to trade up into the close in because again, it only offered price on the downside. We saw price
154 00:29:57,960 --> 00:30:08,280 breaking short term highs here This high was broken here. So we have a potential market maker by profile, where it's going to want to go back up into areas of
155 00:30:08,280 --> 00:30:17,640 institutional order flow, that we're in this consolidation. But there's a fair value gap before you get to that point right in here. And that's resale price
156 00:30:17,640 --> 00:30:33,990 trade right up into that, that 115 25 115 75, reasonable upside objective all through here, all the way through here. For dollar based pairs, that have the
157 00:30:34,020 --> 00:30:43,350 dollar on the front of their name, like dollar yen, or dollar Swissy. Okay, those pairs should have been seen strength because of the underlying strength in
158 00:30:43,350 --> 00:30:43,800 the dollar.
159 00:30:45,690 --> 00:30:55,770 So in summary, to make it a little bit more easier to understand, because I was a very broad brush with a lot of the ideas, but I want you to study this because
160 00:30:56,220 --> 00:31:06,510 it helps you get to why I look at certain trades as low resistance liquidity runs. And that way, if you understand what a low resistance liquidity run is,
161 00:31:06,960 --> 00:31:16,500 you will know what your trades are not. In terms of high resistance liquidity run, you don't want that to be a trader you're trying to take you want to be
162 00:31:16,500 --> 00:31:25,380 trading with the least resistance. So every time we look to be a buyer on a retracement back to a previous order block, we want to see that high being taken
163 00:31:25,380 --> 00:31:36,870 out. But if we're trading against a higher timeframe, and there's no real reason to see the funds, okay, move the marketplace. To those levels, it's not going to
164 00:31:36,870 --> 00:31:45,060 be a low resistance liquidity run, it's going to be a high resistance liquidity run. And they're the types of trades that you sit in too long, or they don't pan
165 00:31:45,060 --> 00:31:58,050 out right away, or they turn right around and bite you in the mirror and stop you out. So in simple terms, let's give you a little cheat sheet list here.
166 00:31:58,290 --> 00:32:08,460 Okay, you want to be looking at a monthly chart or weekly chart and determine where is the market more likely to go to. And by having that idea. If we're
167 00:32:08,460 --> 00:32:20,880 bullish on the monthly or weekly. Then we'll be looking for buy signals by signals on the lower timeframe, like the daily The Four Hour and one hour, and
168 00:32:20,880 --> 00:32:30,480 we will be looking for bullish Otterbox or turtle soup Long's with the expectation that any short term highs on those timeframes. That's where the
169 00:32:30,480 --> 00:32:41,820 objective is. Now, let's assume for a moment that you're looking at a hourly chart and your underlying asset direction bias is bullish on the monthly and
170 00:32:41,820 --> 00:32:53,100 weekly Well, or one or the other. But either one of them has to give you that directional bias if the directional bias is bullish, and you see an hourly
171 00:32:53,280 --> 00:33:05,820 chart, give you a return back to what would be otherwise seen as a bullish order block. But the high in between the range low and the high. It retraced from if
172 00:33:05,820 --> 00:33:16,260 it's only 20 pips, is that a trade that would be viewed as something that you would take? In my opinion, no, because the range is only 20 pips when it returns
173 00:33:16,260 --> 00:33:22,830 back to the previous order block. For instance, if this is, say, an hourly chart, or
174 00:33:24,240 --> 00:33:32,040 maybe a 15 minute timeframe, and this is the range you're looking at here, this retracement, if the range is only from the order block where you would be buying
175 00:33:32,100 --> 00:33:41,400 up to the high in between, if that's only 20 pips, are you going to be taking that type of trade? My opinion would be no, I wouldn't personally take that
176 00:33:41,400 --> 00:33:51,360 trade. But if I saw a swing like, say this low here, and up to this high here, and there was an order block that allowed me to get into it down in this point
177 00:33:51,360 --> 00:34:00,540 here. If I could take that trade in and say this was 40 pips, that would be a trade I want to take, because if that's 40 pips from where the highest and where
178 00:34:00,540 --> 00:34:10,110 the order block entry would be, that means I could potentially have 40 pips in profit, because I'm going to try to get out with a run above the high and
179 00:34:10,110 --> 00:34:20,670 exiting where the buy stops would be in the form of a low resistance liquidity run. Because I'm trading inside of the monthly and weekly range, that would be
180 00:34:20,670 --> 00:34:32,880 viewed as internal range liquidity, which has very little resistance on the trade on a lower timeframe. Many folks would see that as resistance is going to
181 00:34:32,880 --> 00:34:40,020 hold back price, but on the monthly and the weekly chart, it's indicating they want to go higher. So it's going to have very little difficult to get through
182 00:34:40,020 --> 00:34:50,190 it. But the precursor is you want to look at price swings that offer about 40 pips, if you can see anything at 40 pips or higher in looking for a retracement
183 00:34:50,190 --> 00:35:01,320 to go long on that. That gives you a reasonable first profit objective. Now obviously, if you go out to a larger timeframe, again us bigger price swings,
184 00:35:01,530 --> 00:35:11,490 that gives you a lot more depth in terms of what you can pull out in terms of pips. So if you're looking for say you're a trader, you want to have nothing
185 00:35:11,490 --> 00:35:23,310 less than 50 pips. Okay, well that's great use a 30 minute or 60 minute chart and dial in looking at your marketplace for buy signals that set up those price
186 00:35:23,310 --> 00:35:33,750 swings. So obviously a price impulse price swing like this and say this was a hourly chart, okay, this in this range would be from this high down to that low.
187 00:35:34,110 --> 00:35:42,570 If that was 50 pips or more, that will be a wonderful opportunity for you to get your classic 50 pips or more setup. So if you have a weekly objective, let's
188 00:35:42,570 --> 00:35:54,330 just say you've done numbers, you've worked it out where you want to make 10% a month and you figured out that to get 10% a month, you need to make 50 pips on
189 00:35:54,330 --> 00:36:02,010 whatever equity base you have. Okay? And you figure out how many pips you have to have, which stop loss has to be above law ends up you just want to hit that
190 00:36:02,010 --> 00:36:12,360 number, and 50 pips will get you there. So what you do is you want to look for ranges to have 50 pips or more preferably about 75 to 80 pips is perfect,
191 00:36:12,360 --> 00:36:20,130 because even if it doesn't even break the range, and go up above this old high, it still gives you the opportunity to get that 50 pips. So don't think just
192 00:36:20,130 --> 00:36:29,070 because I'm saying that we have to be a buyer down here and looking for exit above the old high that you can't get all of your objective and your goal inside
193 00:36:29,070 --> 00:36:37,110 the range. Because again, that's that's the beauty of trading price action, because you don't need the range to break. If you frame the right swing, you
194 00:36:37,110 --> 00:36:48,060 don't need the range to trading in to break to be new, wildly profitable. You don't need it to move well beyond the range high either. If you're looking for
195 00:36:48,060 --> 00:36:55,290 the break, numbers, if you just want to see it like you didn't need to do all this. If you were buying down here in that range from this high down to the low
196 00:36:55,290 --> 00:37:04,530 where you're trying to buy, let's say 100 pips, you can handsomely take 75 pips out of that 90 At the port range. But you can't do that if you try to do every
197 00:37:04,530 --> 00:37:14,880 entry on every 30 Pip price link for 25 pricing because you're you're trying to get in right now, and you're looking for anything that gets in, if you're much
198 00:37:14,880 --> 00:37:22,020 more selective on your setups, you're going to trade a lot less, but your setups are going to be a lot more choice, they're going to be more potent, they're
199 00:37:22,020 --> 00:37:34,500 going to have a lot more likelihood of panning out for you in your favor. But you can't do that. Okay, if you trade every single setup, in every timeframe,
200 00:37:34,680 --> 00:37:46,230 you got to pick a timeframe that fits what your model is. If you're trying to get you know, 250 pips over a course of two weeks or so, okay, you're not going
201 00:37:46,230 --> 00:37:53,700 to get that trading on a five minute chart. And looking for those types of price swings, you need to be living on a four hour chart, or a daily chart, and
202 00:37:53,700 --> 00:38:04,260 trading those price swings. And looking for those, those levels. And that'll give you you those types of objectives and returns. But to give us multiple
203 00:38:04,320 --> 00:38:12,330 examples on a day by day basis, I use a 15 minute timeframe intraday to show you how many times you can see something setting up. And while it won't always
204 00:38:12,330 --> 00:38:20,190 deliver five to one or three to one even sometimes it will deliver a lot of price action study. And then we move out to a higher timeframe where we're only
205 00:38:20,220 --> 00:38:23,100 working off of an hourly chart, they'll give us a great more
206 00:38:24,600 --> 00:38:34,800 opportunity to talk about how the moves that take place that move a lot more than 3040 50 pips, we can get into the range of 150 pips, okay, those types of
207 00:38:34,800 --> 00:38:42,570 setups, they're more fun, but you have to sit on your hands and wait a little bit more. It's not much more than that sit and wait, but framing the ideas with
208 00:38:42,570 --> 00:38:51,300 a higher timeframe monthly and weekly in determining where they want to go. Keeping that perspective in mind, every time we look at an old high or bullish
209 00:38:51,960 --> 00:38:59,280 on these lower timeframes, what that's going to do is it's going to build a model where we can see clearly that it's a low resistance liquidity run when we
210 00:38:59,280 --> 00:39:07,680 buy. And we don't have any fear of looking at that as a resistance level or this is a resistance level, we will see the market want to draw to those levels
211 00:39:07,680 --> 00:39:15,390 because there's buy stops above that. That's why the markets wanting to go there. You see how quickly it tries to get to that level here. And then once
212 00:39:15,390 --> 00:39:24,180 this has taken place, what does it do it doesn't waste any time it quickly gets up there above this high and then ultimately runs aggressively into this high
213 00:39:24,180 --> 00:39:32,400 here. If we were bearish on the monthly chart when weekly chart we will be looking for the opposite we would be looking for retracements higher and making
214 00:39:32,460 --> 00:39:46,620 low resistance liquidity runs to break the low a swing low and we would look for price swings of 50 I'm sorry 40 pips or more as a high opportunity, high odds
215 00:39:46,620 --> 00:39:57,840 opportunity for a day trade or a short term trade. If we use an hourly chart, we could have a little bit more of potential range in terms of pips potentially 75
216 00:39:57,840 --> 00:40:07,620 to 100 pips or so and that will give you the ideal setups that you will be looking for if that's your objective. So a lot of folks that are in this
217 00:40:07,620 --> 00:40:17,190 mentorship and those that are even outside of mentorship, you know, my email boss gets littered with, can you tell me how to make 100 pips a week? Okay,
218 00:40:17,190 --> 00:40:26,850 that's easy. What you need to do is you need to trade a four hour or one hour chart, nothing less. That's it. And you wait, and you look for scenarios across
219 00:40:26,850 --> 00:40:34,380 all the majors and you'll find 100 pips price swing every single week. But that has to be your model, it can't be because I just said it, and you go out there
220 00:40:34,380 --> 00:40:44,490 and start trying to force it to happen. If you don't have the, the psyche, the do that it's not going to work. By having these higher timeframe charts and give
221 00:40:44,490 --> 00:40:53,310 you that directional bias where it's going to go. It helps you frame whether the trade you're going to be taking, is in fact really a low resistance liquidity
222 00:40:53,310 --> 00:41:03,300 run? Or is it really a high resistance liquidity run, if you develop your skill sets on the higher timeframes. It's the same thing we do on the lower timeframe.
223 00:41:03,300 --> 00:41:11,010 But focusing primarily on what the directional bias is going to be on these higher timeframe monthly and weekly. It will help you resist the urge to do
224 00:41:11,010 --> 00:41:18,510 those many times where you go in there and you do a trade because you get impulsive or you just did I don't even know why he did it. Because I've done it
225 00:41:18,510 --> 00:41:26,730 too. You're looking at the charts. I'll buy it now. Or I'll sell it now. And you didn't take any consideration into what the higher timeframe charts are telling
226 00:41:26,730 --> 00:41:33,420 you. And all of a sudden it just rockets the other way. And then you look back, you know, we claim to oh, there it was, it was hindsight, perfect. 2020, I
227 00:41:33,420 --> 00:41:44,460 should have did this opposite. If you stay in directional bias at the month and weekly tell you that you should be doing every trade that you frame has a higher
228 00:41:44,460 --> 00:41:55,350 odds of being a low resistance liquidity run. That's all we do with a market maker perspective. We go in looking for that because they're driving price to
229 00:41:55,350 --> 00:42:03,900 where the orders are. And it's not random where these orders are their logical locations. When it's bullish, the markets going to go above short term highs.
230 00:42:04,140 --> 00:42:15,030 How far over what when's the last high, we never knew that. We didn't know each time. This is a range from this high down to this low. It trades through. Okay,
231 00:42:15,030 --> 00:42:23,520 so now what's the range this low to this high? Well, it broke that what's in the range? Okay, well, this low to this high up here. And then this fair value got
232 00:42:23,520 --> 00:42:33,810 if it trades on through, we know we're looking for return back to this up candle here. And then maybe these highs here, and ultimately above 125 77. We don't
233 00:42:33,810 --> 00:42:42,990 ever try to call a high in the marketplace. That's not what we're trying to do. This was a logical area on the monthly chart to trade to. And it did. So after
234 00:42:42,990 --> 00:42:49,710 we did that we now have to evaluate does it have more willingness to keep going higher? Or would it be
235 00:42:51,330 --> 00:42:59,880 more prudent for it really, to go into a consolidation here and I think logically it should, but the markets going to do what's going to do but in this
236 00:42:59,910 --> 00:43:08,460 module, the aim was to get your mindset on a monthly or weekly capacity. And that way when you go into the lower timeframes every trade scenario you trade
237 00:43:08,460 --> 00:43:18,120 with in that directional bias on the monthly and or weekly will help you find the low resistance liquidity runs that you're looking for. They are the high
238 00:43:18,120 --> 00:43:26,580 probability setups. They're the ones that have the immediate payouts are the ones that gave you the immediate responsiveness to your entries, and has very
239 00:43:26,580 --> 00:43:33,240 little drawdown and that's your goal as a trader, you want to be trading in that environment. So with that, guys, I wish you good luck and good trading