27-ICT Mentorship Core Content - Month 4 - Orderblocks

Last modified by Drunk Monkey on 2022-09-09 12:49
1 00:00:35,460 --> 00:00:45,030 ICT: Welcome back, folks, this is the third teaching of eight from the December content of the ICT mentorship. We're gonna be talking about reinforcing order
2 00:00:45,030 --> 00:00:56,610 block theory, selecting and avoiding. And we're gonna first talk about the bullish order block everything I say here you'll just reverse for a bearish
3 00:00:56,610 --> 00:01:12,540 order block to save time. Definition of a bullish order block is the lowest candle or price bar with a down close that has the most range between open to
4 00:01:12,540 --> 00:01:27,120 close and is near a support level. Validation of a bullish order block is when the high of the lowest down candle or Price Bar is traded through by a later
5 00:01:27,120 --> 00:01:40,140 formed candle or Price Bar. entry techniques using a bullish order block when price trades higher away from the bullish order block and then returns to the
6 00:01:40,140 --> 00:01:54,690 bullish order block candle or Price Bar Hi, this is bullish, and can be used for a bullish entry. defining risk with bullish order block. The low the bullish
7 00:01:54,690 --> 00:02:06,180 order block is the location of a relatively safe stop loss placement just below the 50% of the order block total range is also considered to be a good location
8 00:02:06,180 --> 00:02:19,410 to raise the stop loss after price runs away from the bullish order block to reduce risk when applicable. Okay, let's take a look at a suppose it support
9 00:02:19,410 --> 00:02:30,450 line. Now that can be in the form of a old low on a long term or higher timeframe chart. It could be an old high or price has moved above recently. And
10 00:02:30,450 --> 00:02:38,010 now we're trading back down into it. So simple Support Resistance ideas are just enough here. But the main thing is you want to be using it on a higher timeframe
11 00:02:38,010 --> 00:02:49,440 charts like a monthly, weekly or daily. And eventually you'll see price trade down into this level that you identified as a support level. Once price trades
12 00:02:49,440 --> 00:02:55,980 down into the support level, and it could trade to it or just through it doesn't make a difference. What we're doing is we're waiting for price to show us
13 00:02:55,980 --> 00:03:07,080 indications that smart money or a large body of big flows. For those individuals that are on an institutional level, they have a whole lot more collectively than
14 00:03:07,080 --> 00:03:19,530 we do in terms of money. When they participate in a move. It'll be seen in price action. So when we have this down candle, we have already are assuming that this
15 00:03:19,530 --> 00:03:29,130 may be a bullish order block. We don't know that yet. Until at a later time, when another candle trades through it. What are we supposed to be aiming for?
16 00:03:29,940 --> 00:03:41,820 We're identifying our focus the down candles high when that is violated with a new candle and it trades through that high now we have a validated bullish order
17 00:03:41,820 --> 00:03:42,240 block.
18 00:03:48,090 --> 00:03:59,880 This candle validates the down candle as a bullish order block. Now this moment, if we trade back down, once that down candle or suspected bullish or blocks
19 00:03:59,880 --> 00:04:12,210 highs violated, we can now highlight that candles high and even in the very candle that broke that down candles high. If it trades back down to that down
20 00:04:12,210 --> 00:04:23,070 candles high or the low sort of blocks high. That could be a retreated price that which we could day trade off up or enter our Long's early. In other words,
21 00:04:23,070 --> 00:04:38,670 we don't have to wait for a later time for it to trade back down to this level. Eventually price will run away. At this point. If you didn't enter on a Retrade
22 00:04:38,850 --> 00:04:48,510 the bolt or blocks high you're simply going to be waiting for price to want to pull back. Now we have indications that there has been displacement in the
23 00:04:48,510 --> 00:04:57,600 marketplace. That means someone with a whole lot of money and a whole lot of interest wanting to see higher prices is now in play. They are participating in
24 00:04:57,600 --> 00:05:08,190 the marketplace. This is the evidence In price action that you have institutional sponsorship behind the move, large flows or institutional traders
25 00:05:08,490 --> 00:05:22,020 have the capacity to move price. Whereas we as lower grade traders in terms of retail or smaller traders in terms of in respect of a bank or a large entity in
26 00:05:22,020 --> 00:05:33,630 an institutional capacity, we can't move the marketplace, but they as a whole, collectively can. So what we do is we wait, we're patiently watching price, we
27 00:05:33,630 --> 00:05:46,560 anticipate price and start to retreat back down into that down candle or bullish order blocks high. At this moment, we can set alerts that identify the high on
28 00:05:46,560 --> 00:05:54,300 that candle. Now I'm using the bodies of the candles remained using the wick. But I want you to focus primarily on the bodies of the candles. And when we talk
29 00:05:54,300 --> 00:06:03,000 about wicks, going to overlap order blocks with fair value gas, because there's going to be the answer to many of your questions is to relate to when do we use
30 00:06:03,000 --> 00:06:08,910 the wicks and when do we use the buys of the candles. But primarily, I want you focusing on the bodies of the candles when we're talking about all the order
31 00:06:08,910 --> 00:06:21,660 blocks as a whole. So at some point, when we see that level, okay, that high that order block, when we're close to it, we can now set an alert, we can set
32 00:06:21,660 --> 00:06:31,440 our platform to remind us with a text to our phone, or email us or however it is that you would be alerted by your platform. Some platforms have pretty
33 00:06:31,440 --> 00:06:40,560 sophisticated means of contacting you, fellas or just simply a, you know an audible alarm that goes off on your computer to draw your attention to a
34 00:06:40,560 --> 00:06:50,820 specific market. But until then, you're going to submit to time you're waiting. Now this is sometimes the hardest thing to do as a trader, we identify what
35 00:06:50,820 --> 00:07:01,950 we're looking for in terms of a entry. But you have to wait for price to get down there. While price is trading lower, you should already formulate an idea
36 00:07:02,220 --> 00:07:10,920 of what it is that you're going to do in terms of risk, how much you're going to put on a trade when you buy long. And where you're aiming to get out to a market
37 00:07:10,920 --> 00:07:21,840 with a profit. All those things should be factored in. During this time. Eventually price will drive down into that down candle or bullish order blocks
38 00:07:21,840 --> 00:07:32,520 high at that moment. And if you're in front of your charts, that's when you enter the market with a long position. If you have a limit order, you're going
39 00:07:32,520 --> 00:07:43,950 to add a few pips in preferably it's about five pips we like to add to a bullish candle. And that way, the spread will be able to kick us in on a long entry. But
40 00:07:43,950 --> 00:07:52,890 you don't have to always rely on a limit order, you can go and hit the market as it hits that down candle. Now sometimes it'll drive a little bit deeper into
41 00:07:52,890 --> 00:08:04,320 that bullish order block. And that's okay. But for now, I want you to try to key off your demo entries on the down candles, body of the candle the high or the
42 00:08:04,320 --> 00:08:19,590 open. In essence, any down candle, the body is going to begin with the opening and ends with the clothes. What we're actually looking at is internal range
43 00:08:19,590 --> 00:08:33,900 liquidity. Now when we're trading inside the range, and that range is defined here, what we're looking for is an expansion up into a known level of what,
44 00:08:34,260 --> 00:08:44,850 what's up there? Well, that's gonna come in the form of external range liquidity, the external range liquidity is where we're going to be looking to
45 00:08:44,850 --> 00:08:48,420 offset some or all of our long position.
46 00:08:52,470 --> 00:09:03,780 Now we identified the buy level, we've entered the market. Before we do this, what we should have had in mind is ideally, where we're looking to take our
47 00:09:03,780 --> 00:09:14,460 profits that's up here above an old high, and that's going to be informed by stops. So if we're buying or entering long inside of a noon range edit bullish
48 00:09:14,460 --> 00:09:25,350 order block at internal range liquidity, we're buying that liquidity it's offered at that level. We're going to be looking to sell our position to willing
49 00:09:25,350 --> 00:09:36,150 buyers in the form of those individuals to hold buy stop above that old high. That's all well and good for profit taking but what do we do for risk? We take
50 00:09:36,150 --> 00:09:45,930 our attention back down to that bullish order block because it's going to give you everything you need for your trading plan. We identify the entry at the open
51 00:09:46,380 --> 00:09:56,730 of the down candle, that's our buy point four or five pips above it. But we want to focus our attention in the midway point of that down candle that's going to
52 00:09:56,730 --> 00:10:08,340 be informed of the mean threshold. I Ideally, the best order blocks will not see price trade down below the midway point of the entire body of the candle, you're
53 00:10:08,340 --> 00:10:16,410 going to measure the open to the close on the down candle to measure where the middle of it is do not use the wicks don't use the very high or the very low.
54 00:10:16,860 --> 00:10:30,930 Measure your Fibonacci level 50% Level or halfway point is the mean threshold on a bullish order block. And same thing said with a bearish order block but you
55 00:10:30,930 --> 00:10:39,180 just don't want to see price drive down deeper than that mean threshold by very much it can step through it just by a little bit. But we primarily don't want to
56 00:10:39,180 --> 00:10:50,190 see a trade down there at all do better or blocks won't do it at all. And you protect yourself stop is going to be below the bullish order blocks low or below
57 00:10:50,190 --> 00:11:02,370 the close. Now at this point, depending upon where that low is, it could be the low of the wick, but primarily gonna be looking at the low Tron by the close of
58 00:11:02,370 --> 00:11:03,300 the body of that candle.
59 00:11:08,429 --> 00:11:23,279 Now again, focusing on what we anticipate in price, eventually, price should show our responsiveness and trade up and through our old high when that happens,
60 00:11:24,269 --> 00:11:31,679 you're going to be looking to take partial profits or all your profits depend upon how big that move was and how much profitability if obtained, what you're
61 00:11:31,679 --> 00:11:40,319 actually trying to do is you're going to be pairing your long exit with willing buy stops and that is essentially bullish order block trading in a nutshell,
62 00:11:40,919 --> 00:11:51,809 it's been complicated by many people on the YouTube that's adopted it and those that want to use it on Twitter and on social media, they've shared some several
63 00:11:51,809 --> 00:12:03,899 ideas, but I want to focus on the simplicity of them here and then we're going to graduate into more teaching later on in this month that are going to be
64 00:12:04,079 --> 00:12:14,399 subordinate sub topics that are going to be taught to you during the week of Christmas so I'm gonna give you actually more amplify teaching with the order
65 00:12:14,399 --> 00:12:30,839 blocks. So this is not the entire treaty on order blocks as it relates to buying and selling. Okay, liquidity based bias. Okay if the monthly chart is bearish,
66 00:12:31,559 --> 00:12:43,679 that weekly charts bearish and the daily charts bearish that will give us a wonderful opportunity to get in sync with institutional order flow. intraday
67 00:12:43,679 --> 00:12:53,399 charts for hours and less will be correcting and retracing higher. Now again, the markets are predisposed to go lower because the monthly weekly and daily we
68 00:12:53,399 --> 00:13:03,659 have arrived at a bias that we've seen price want to go lower, it's been making lower lows and lower highs, support levels are giving way, resistance levels are
69 00:13:03,659 --> 00:13:12,389 being formed and being respected. When you see those evidences in price along the lines of the monthly, weekly and daily, we can zero in on the four hour.
70 00:13:12,899 --> 00:13:22,199 Okay, and start looking for liquidity. On the buy side. In other words, there's going to be at premium built into the marketplace or a rally, you're gonna be
71 00:13:22,199 --> 00:13:34,139 looking to sell rallies protected by stock rates or returns to bearish order blocks or fair value gaps and or filling up a liquidity void, each offering a
72 00:13:34,139 --> 00:13:44,789 potential low resistance liquidity run shorting for a target under a recent low. What low would you be targeting while you want to be primarily looking to see
73 00:13:44,819 --> 00:13:55,919 what's near term on the daily chart, what liquidity is resting on a daily chart your trade on a short could be looking to take advantage of buying back below a
74 00:13:55,919 --> 00:14:04,169 daily low where sell stocks will be resting. If there is an objective that you can see on the weekly chart, much in the same way we would have identified
75 00:14:04,169 --> 00:14:11,639 something on the daily, we would be looking for that objective as well. Primarily, you'll be trading in the direction of the monthly chart because
76 00:14:11,639 --> 00:14:20,639 that's where the large funds and institutional order flow is going to begin and then it moves down into the weekly chart, then it moves down into the daily
77 00:14:20,639 --> 00:14:30,809 chart. The daily chart is the most dynamic of these three timeframes, and you'll see a lot more trade there axing counter, long term higher timeframe
78 00:14:30,839 --> 00:14:40,799 institutional workflow. So that weekly chart will have a lot longer time period required to change direction versus the daily chart, they can go up and down in
79 00:14:40,799 --> 00:14:48,869 multiple times and still maintain the bearish nature, the weekly and the monthly. And obviously the monthly takes a long time to change directions. And
80 00:14:48,869 --> 00:15:00,239 that's where the power of what I'm going to teach you in this module will give you okay liquidity based bias for a bullish monthly chart bullish week. which
81 00:15:00,239 --> 00:15:10,289 are in a bullish daily chart, intraday charts four hours or less will be correcting and retracing lower. This is where you anticipate the market to enter
82 00:15:10,289 --> 00:15:14,189 into a discount and seek sell side liquidity to buy from,
83 00:15:15,599 --> 00:15:22,199 in what we just showed you an example of was the bullish order block that you would use in this instance. And we're actually gonna go into the dollar index
84 00:15:22,199 --> 00:15:32,219 and actually break it down show you all this conceptually protective cell stop rates or returns to bullish order blocks, or fair value gaps, and or filling out
85 00:15:32,219 --> 00:15:42,029 the liquidity void, each offering a potential low risk liquidity run, buying for target above a recent high, just like we were referring to earlier, you're gonna
86 00:15:42,029 --> 00:15:50,579 be aiming for something on a daily chart preferably, and you're gonna be looking for buy stops at the marketplace, on a daily high, it could be an, it could be
87 00:15:50,579 --> 00:15:59,879 yesterday's high, it could be last week's high that you can see on a daily chart, it could be last month's high. It could be intra week high. Okay, but try
88 00:15:59,879 --> 00:16:10,379 to find something on the daily chart to give you a trade, in terms of framing your idea that you want to be a buyer, and then preferably look for something in
89 00:16:10,379 --> 00:16:17,819 the weekly chart that would support even higher, because if you have something higher on the weekly chart, you probably will have a lot better odds behind your
90 00:16:18,329 --> 00:16:28,319 trade. If you're looking to move into a level on the weekly chart, and in preferably, obviously, the monthly chart, if it's bullish, you will be in sync
91 00:16:28,319 --> 00:16:38,129 with the institutional order flow that will be seen by studying that timeframe. So let's take a look at the monthly, weekly and daily on the dollar index and
92 00:16:38,129 --> 00:16:42,989 give a conceptual idea of what I'm referring to here using bullish order blocks.
93 00:16:48,029 --> 00:17:14,129 To take a look at the resistance levels you see here. And equal highs here. Okay, and price came down and hit a level of support. So that happened here.
94 00:17:15,779 --> 00:17:25,229 Okay, so we know that there's equal highs up here. So what's above equal highs, what was taught to you in September is going to be in the form of buy stops,
95 00:17:26,069 --> 00:17:38,819 it's too clean to meet and price come down, cleared out an old low, but we're not going to talk about the stock runs here. We're going to look at this as a
96 00:17:38,819 --> 00:17:47,969 support level. Okay, all we're doing is classifying this as a support price comes down hits that, okay, and we're going to wait to see if there's a
97 00:17:47,969 --> 00:18:00,449 willingness to trade away from it, we see it happen here. When that occurs, this up candle violates the down candle right before the level was hit at the support
98 00:18:00,449 --> 00:18:03,059 level. So once we have that
99 00:18:09,720 --> 00:18:20,070 we now have a order block that's validated. So now we can be a buyer. If price comes back down into this candles opening, where it starts to body, the candle,
100 00:18:20,790 --> 00:18:34,950 that price level is 9458. And you still check that the opening is 9458. Yes, correct. So when price trades back down into it, as you can see here are a
101 00:18:34,950 --> 00:18:45,870 little bit more show more data price trades down into it on this candle. Now it quickly moves away from it on this candle here. But at that moment when it hits
102 00:18:45,870 --> 00:19:11,040 this, okay the the low on that candle comes in at 9407 9407. And the level we had here is 9458. So about 50 pips there abouts, in terms of movement through
103 00:19:11,040 --> 00:19:21,900 the level and again, this is a monthly chart so a little bit of flexibility is necessary and we're looking for very easy to find low resistance liquidity runs
104 00:19:21,900 --> 00:19:37,260 with a bullish order block. So when price hits that this particular month is August of 2016. So we could expect to see some bullishness in August. And I'll
105 00:19:37,290 --> 00:19:47,010 see the rest of the data here you can see clearly that the market did in fact, trade all the way up through to equal highs here to present time of this
106 00:19:47,010 --> 00:20:00,510 recording December 2016. And we're going to take another look at this down candle here. Because this order block becomes another support level. Remember,
107 00:20:00,690 --> 00:20:13,230 if we anticipate bullish price here doesn't buy nature support price in the form of Support Resistance ideas. So this level here, if we see a down candle, you
108 00:20:13,230 --> 00:20:21,060 offer that level, that could be a potential bullish order block as well. Remember, it's going to be trading down into that level. And why are they doing
109 00:20:21,060 --> 00:20:33,210 this, they're going down to pick up more opportunities to get long at a cheaper price, more discount price. So when price was a bearish candle here, that's when
110 00:20:33,210 --> 00:20:42,840 the order block would have been hit again. Okay, and then what do we have here on this candle, it violates this down candles high, okay. And the open on that
111 00:20:42,840 --> 00:20:56,310 candle is open, it's 9598. And the level is 9598 on our level here on the segment, and you can see price hits that level here, it opens on this candle and
112 00:20:56,310 --> 00:21:04,380 trades all the way down hits it, this would be another support level to anticipate seeing prices trade higher. So we're gonna do is we're gonna drop
113 00:21:04,380 --> 00:21:19,980 down into a weekly chart, and we're gonna start looking at this month here and we're gonna put a vertical line there, delineating everything to the right of
114 00:21:19,980 --> 00:21:35,460 this vertical line and I'm going to highlight big and bold so we can't miss it. And we'll just make it a big old bright red color. Okay, so now we're gonna drop
115 00:21:35,460 --> 00:21:53,610 down until a weekly chart and we'll see how this gives us a weekly bias as well. Here's here it is here price trades down into that level. Okay, price rallies
116 00:21:53,610 --> 00:22:11,220 away. When price rallies away like that we're going to be looking for an objective to go long on this left one here and here so how many times that price
117 00:22:11,220 --> 00:22:18,390 move away from this down candle that is by an identified again, we'll go back out to a monthly chart
118 00:22:25,530 --> 00:22:46,710 that's this level here. So in May prices validated that order block in May. Okay, so we're going to move over into May there there's may Okay, here's the
119 00:22:46,710 --> 00:23:00,330 order block level on a monthly chart to price trades down into it here and we wait to see does price want to rally away we're in this is the level you have to
120 00:23:00,330 --> 00:23:13,740 be identified because the monthly waterblock the bullish order block on a monthly level. So we're gonna broaden that one up a little bit. Okay, and in
121 00:23:13,740 --> 00:23:23,040 price is trading down into that. So what are we waiting for, we're waiting for evidence to support the idea that the large traders want to send price higher
122 00:23:24,390 --> 00:23:36,840 price does that here it violates this down candle right here. It's it's high as broken right there. Okay, right there. So now this order block on a monthly
123 00:23:36,840 --> 00:23:38,190 level can be refined
124 00:23:43,770 --> 00:23:56,880 to this level right there. Okay, so price trades through this down candle. Now this down candle on a weekly has been refined from a monthly level. It's now we
125 00:23:56,880 --> 00:24:07,650 can anticipate this level if it's traded back down into it. We could be a buyer at that level. We see that happening here. Price trades down into it. Notice the
126 00:24:07,650 --> 00:24:10,980 down candles mid point or mean threshold
127 00:24:20,580 --> 00:24:30,480 ray here just pierces it just a little bit but does not go down below the body of the down candle. What do we do we identify we're in a range the range is this
128 00:24:30,480 --> 00:24:41,610 low to this high. It trading back down into internal range liquidity absorbing some more buys in this down candle. We should see the responsiveness on the
129 00:24:41,610 --> 00:24:50,370 outside now mind you this is a weekly chart. Look at the bodies respect of this down candles opening. Okay. Yes, it trades down through a little bit. But we
130 00:24:50,370 --> 00:25:01,740 could be a buyer at that level here with the expectation that we're going to see a run. We're at right above these highs. Okay, right Got these highs. So now
131 00:25:01,740 --> 00:25:13,860 here's when bearish order blocks are not considered this up candle, great for this down move here, we would not look to that as a selling point, we don't look
132 00:25:13,860 --> 00:25:21,690 at that as we're going to get short here, when it trades up to that this candle, we don't look at that and say okay, we're gonna get short. Why? Because the
133 00:25:21,690 --> 00:25:31,320 higher timeframe is suggesting we're going to be going higher overall, long term in the long term trend direction is going to drive a lot more significant price
134 00:25:31,320 --> 00:25:42,030 action, then looking for sells. In other words, we're going to be looking to be buyers on dips, and selling on the rallies to take profit. So that's when you
135 00:25:42,030 --> 00:25:49,320 want to avoid very shorter blocks because you're standing in way of institutional order flow. So there's gonna be buy stops above these high here
136 00:25:49,350 --> 00:25:58,680 that we're going to sell our Long's to they're willing buyers great. We're gonna be willing sellers, if price gets up to that point, come down here in the form
137 00:25:58,710 --> 00:26:05,550 of pips. We have a range
138 00:26:11,609 --> 00:26:29,219 of almost 300 pips to 90 pips potential range there, okay. And there's nothing wrong with that. So now also, we have this level, and here, we can be keying off
139 00:26:29,219 --> 00:26:42,209 of on a daily timeframe. And we can use a four hour time frame as well, to refine that. We're going to look at this level here, price shows a willingness
140 00:26:42,209 --> 00:26:53,099 to want to move away and it does, we can now identify this level here, which was the other monthly higher bullish order block, we're going to refine that level
141 00:26:53,099 --> 00:27:01,169 to well, how are we going to refine it? Well, we have this down candle right and for the price moves higher, this candle trading through the last down candle
142 00:27:01,169 --> 00:27:08,609 right here that validates this downloads a bullish order block. So we can borrow this level for a moment.
143 00:27:14,400 --> 00:27:25,590 Put it right on the opening. Okay, price validates the bolt or block right there. Okay, and you can see that it trades back down through it. In this
144 00:27:25,590 --> 00:27:33,780 instance, we didn't get that much of a move away, we want to see price move away, you want to see that. Preferably what I'm looking for is a move of
145 00:27:33,810 --> 00:27:45,330 whatever the order block is. Now this is a notation for your notes. Okay, this is the first time I've included this. If you see a move is your order block,
146 00:27:45,930 --> 00:27:58,470 what I like to look for is two to three heights. For the range, if you will, of the order block, I want to see at least two to three times that is it rally
147 00:27:58,710 --> 00:28:14,040 away. And that'll give me a nice decent expectation to see a retracement back into to get in, you know, opportunity to buy long. We have that there, price
148 00:28:14,040 --> 00:28:22,950 rallies up to this point here and then comes all the way back down into what we have this down candle, we could have kept that there. And we would have missed
149 00:28:22,950 --> 00:28:31,860 any new opportunity. But look, we have here this down candle has traded into that old order block as well. So now we have a higher bullish order block right
150 00:28:31,860 --> 00:28:42,810 here because this candles open is higher than this candle. So now we can refine that same level, just up to a higher timeframe or not a higher timeframe but a
151 00:28:43,230 --> 00:28:53,940 higher order block. So now we can refine our level to that point right here. price moves away trades through this candles high right here validating this as
152 00:28:53,940 --> 00:29:05,790 a bullish order block. Again, we're going to be looking for a rally of two to three times to order blocks, bodies height. So it has to trade about here, here
153 00:29:05,850 --> 00:29:21,450 here. So at this point here, we have a valid swing. So now we can look for a retracement back down. This candle is opening is 9585 the low on this candle is
154 00:29:21,480 --> 00:29:36,390 9587 so it's only two pips away from that the high on this candle is 9586 so it still was only one pip away from that as well. But we always add pips to our
155 00:29:36,390 --> 00:29:51,270 levels to get in to cover the dealing spread. We also see another higher down candle that's higher than this one. We have to move our level up to that new
156 00:29:51,300 --> 00:30:01,320 down candle. Every time it creates a new down candle that's going to be the new potential bullish order block. price changes added to it here. So there's
157 00:30:01,320 --> 00:30:10,590 another opportunity a buyer here. So that's what we're we do from a higher timeframe to a lower timeframe we refine our entries and our levels with this in
158 00:30:10,590 --> 00:30:24,870 mind. Price makes a run through even after taking this level out here, you can take partial profits out here. Okay, take a little bit more profits out at old
159 00:30:25,230 --> 00:30:33,810 weekly high here remember we're looking for weekly highs take profit set and then leave a little bit on here when price comes back down we can now add back
160 00:30:33,840 --> 00:30:45,090 on the positions we took off here and here add them here as new Long's and as price rallies through to external range liquidity which is this hot here
161 00:30:46,260 --> 00:30:51,780 entering it internal range liquidity at this bullish order block here, the range again
162 00:31:02,400 --> 00:31:15,660 about 310 pips just to get first profit here, okay. And then you're gonna look for an expansion to continue to take out this hot here in this hot here for what
163 00:31:15,690 --> 00:31:22,830 external rings liquidity, what's going to be above these highs by stops. So you're gonna be looking to sell to those participants that would have an
164 00:31:22,830 --> 00:31:38,460 interest of buying about above these highs. refining it further into a daily timeframe, you can see all these levels get much more refined. You can see the
165 00:31:38,460 --> 00:31:50,370 reactions about these levels again. And now because these are weekly levels, we can see the reaction at them on a daily basis. The levels are traded back down
166 00:31:50,370 --> 00:32:01,950 into here, bullish order block, the weekly level that we transpose over here into a daily, we can see that this down candle two down candles in a row on any
167 00:32:01,950 --> 00:32:12,840 timeframe yet to blend them together to get one full order block. In this case, it's two down candles is one full porch or block. So we can refine that here.
168 00:32:13,080 --> 00:32:21,270 Use the wicks and the bodies look for that as well. But we're going to focus primarily on the open on the candle. You see it hits it here. And this is all
169 00:32:21,270 --> 00:32:31,650 during the election which I personally was on the sidelines it did not do any trading. And then recently, we had this down cam that we talked about prior to
170 00:32:31,680 --> 00:32:47,400 this week's trading that week ending December 16 2016. In a pre market analysis, I told you to focus on this down candle. Prior to this big move up, I said that
171 00:32:47,400 --> 00:32:54,660 we would look for the mean threshold of this down candle. Why? Because I don't think we're gonna get down to this down candle wouldn't necessarily because I
172 00:32:54,750 --> 00:33:05,340 view this as a run on stops, which we'll talk about in the next teaching. But we traded right back down into the middle point of this down candle forming
173 00:33:05,340 --> 00:33:14,070 threshold and then we expected to see what happened external range liquidity above this high and continue higher reaching into the higher timeframe levels we
174 00:33:14,070 --> 00:33:27,990 were looking for 12312 350 And then 104 is next. Ultimately 10517 Still in the cards for Dollar Index long term, she can see how dynamic working from the
175 00:33:27,990 --> 00:33:37,170 monthly levels to the weekly levels refining them. waiting for confirmation to there is a displacement by smart money and then simply waiting for those levels
176 00:33:37,170 --> 00:33:46,200 to be retreated down into and you can refine these as is small as you want but going into as low as a five minute chart. If you want the ultra really really
177 00:33:46,200 --> 00:33:55,680 low risk entry and small stops. But you're looking for the direction for the monthly the weekly and the daily they get you a directional bias and only
178 00:33:55,680 --> 00:34:06,300 focusing on his higher timeframe directions. Those order blocks are the ones that you buy. Those order blocks also will keep you from taking focus on the
179 00:34:06,300 --> 00:34:14,850 bearish order blocks because while bearish order blocks for the last up cannot wait for the down moves that you see in price. Those are good objectives to take
180 00:34:14,880 --> 00:34:23,910 profits at. Okay, if you hit a bearish order block during a time of day when profit taking shouldn't take place. Guess what, you may not get that run above
181 00:34:23,910 --> 00:34:34,950 an old high you may end up having to take profits at that bearish order block and then wait for Asia and Frankfurt and then London to you retrace a little bit
182 00:34:34,950 --> 00:34:44,850 and then dry through and then you'll see that run on a new higher high for capturing external range liquidity. So there's a lot of factors that you have to
183 00:34:44,850 --> 00:34:55,740 keep in mind. But this teaching was to focus your attention more on only getting on the long bullish order blocks when the monthly and the weekly in The Daily
184 00:34:55,950 --> 00:35:06,450 Show you clear indications to the markets being accumulated and only Using bearish order blocks, okay to take profits when time day is an impact. But if
185 00:35:06,450 --> 00:35:14,670 time of day is not in effect, you don't even consider the bearish order block, you might expect them to pause and consolidate there. But you're looking for
186 00:35:14,670 --> 00:35:23,490 them to drive price through an old high to absorb external range liquidity because they're going to look to take profits at a higher price, not just an old
187 00:35:23,490 --> 00:35:31,650 high or inside of an old high. They're going to try to build a premium in and expand that range because it's going to draw in more participation, more
188 00:35:31,650 --> 00:35:40,680 excitement in the form of the funds. And that's what this business is all about drawing allocations from large institutional traders that trade managed funds
189 00:35:40,710 --> 00:35:47,010 and larger position holders. So with that, guys, we wish you good luck and good trading