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60-ICT Mentorship Core Content - Month 6 - High Probability Swing Trade Setups In Bull Markets

Last modified by Drunk Monkey on 2022-09-24 07:30
1 00:00:12,210 --> 00:00:22,410 ICT: Welcome back, folks, this is lesson four, with five February 2017 content for the ICT mentorship. This month's topic is swing trading. And we're gonna be
2 00:00:22,410 --> 00:00:26,520 specifically teaching high probability swing trade setups in bull markets.
3 00:00:34,110 --> 00:00:45,210 Okay, as a reminder, when we're looking at price, we have to think algorithmic and we have to refer to the PD array matrix. So without going into great detail,
4 00:00:45,240 --> 00:00:54,330 because of study purposes only, I'm including this slide, because I don't know when you're gonna be watching this video again, so be mindful that we're looking
5 00:00:54,360 --> 00:01:11,640 for these arrays in deference to the premium or discount spectrum. Okay, bullish monthly, weekly daily sequential. Okay, monthly charts, when you're looking at
6 00:01:11,640 --> 00:01:20,310 the monthly charts of the asset class that you're studying or doing your analysis on, what you're looking for is a discount array that has shown to
7 00:01:20,310 --> 00:01:30,120 induce buying, and it's going to be evidenced by price moving higher. In other words, we're looking for displacement off of a discernible discount array, that
8 00:01:30,120 --> 00:01:40,080 means it could have been a bullish order block, it could have been a old low an old high, it could have reacted after closing in a fair value gap or void or it
9 00:01:40,080 --> 00:01:51,450 could be bouncing off of a breaker. Okay, on the weekly chart, you're looking for the same thing. Just want to lower timeframe, we're outlying discount
10 00:01:51,480 --> 00:02:04,050 arrays, and we're looking for a discount array that has shown a willingness to induce buying and that's going to be again evidenced by price moving higher the
11 00:02:04,050 --> 00:02:14,580 daily chart much in the same way we're looking for discount arrays to show evidence that there are buying in the marketplace that you're under study and
12 00:02:14,640 --> 00:02:25,500 it's going to be seen with moving higher in price. In all timeframes down candles provide new support to price and little to no weaknesses seem.
13 00:02:31,620 --> 00:02:40,950 Okay when the monthly is bullish in order to we have displacement price has already moved higher, the weekly has done so as well and the daily has done so.
14 00:02:42,420 --> 00:02:49,830 Know what you can see displacement or a rally or an impulse swing on all timeframes the monthly weekly and daily. This is the procedure gonna be looking
15 00:02:50,220 --> 00:03:00,870 to follow by all daily bullish discount arrays is a bullish mitigation block, bullish breaker liquidity void fair value gap, bullish order block rejection
16 00:03:00,870 --> 00:03:14,400 block and or a old low or high and you're going to be buying for our bullish discount arrays that are equivalent to those that are listed here. Now when the
17 00:03:14,430 --> 00:03:22,740 monthly, weekly and daily are all indicating higher prices, that means it's making higher highs and higher lows, it's an obvious uptrend. You're gonna be
18 00:03:22,740 --> 00:03:31,080 looking for daily and for our discount arrays to trade every single time it trades down to them. We're expecting we're anticipating bullishness, we're
19 00:03:31,080 --> 00:03:36,030 anticipating an injection of buying volatility, so the expansion should be on the upside.
20 00:03:41,280 --> 00:03:49,650 Now for conditions where the monthly has shown a willingness to go higher or displacement, or impulse price swing has been seen, the weekly has shown an
21 00:03:49,650 --> 00:03:58,770 impulse swing higher as well. But now say the daily chart is under correction. We don't see an impulse swing higher. It's actually coming low. It's trading
22 00:03:58,770 --> 00:04:08,970 lower now, what will we do in this conditions? Well, you're gonna be buying daily bullish discount arrays at or nested in weekly discount arrays. So when we
23 00:04:08,970 --> 00:04:22,950 see bullish order blocks or if we see liquidity voids or mitigation blocks below current market action, they may occur at an area at a nested weekly bullish or
24 00:04:22,950 --> 00:04:35,760 block may be seen or a weekly liquidity void or fair value gap. So we're gonna be looking for daily bullish discount arrays at or inside a level that we'll be
25 00:04:35,760 --> 00:04:45,000 seeing from a weekly discount array. So we're gonna be coupling the higher timeframe levels they may be overlapping or having a confluence of levels when
26 00:04:45,000 --> 00:04:54,030 the monthly and weekly are bullish, but the daily is correcting lower. All indications on the daily chart would look like probably a bear market or a steep
27 00:04:54,030 --> 00:05:04,890 correction lower. All we're gonna be doing is in these conditions we're gonna be looking at discount array As on a daily at or inside nested weekly discount
28 00:05:04,890 --> 00:05:16,230 arrays. And we'll buy for our bullish discount arrays at daily and or nested weekly bullish discount arrays. In other words, all this is saying is on the
29 00:05:16,230 --> 00:05:27,060 daily and the four hour, we're gonna look for bullish order blocks, bullish breakers, fair value guests below the market price, liquidity voids to close in
30 00:05:27,060 --> 00:05:39,930 on the range, basically optimal trade entry. And we're gonna be doing that at levels that are seen on the weekly chart. And it may nest with an old daily
31 00:05:41,430 --> 00:05:55,440 discount array, but it doesn't have to, primarily we're gonna be looking for a level on a weekly to trade at when to avoid buying discount arrays on the daily?
32 00:05:55,830 --> 00:06:05,790 Well, if you see a daily post a higher high and then it's rejected and it breaks down with its market structure. You're probably looking at a development of a
33 00:06:05,790 --> 00:06:21,450 bearish breaker and you do not want to be buying against that type of condition. So that would negate this bullish monthly weekly daily sequential Okay, when the
34 00:06:21,450 --> 00:06:33,840 monthly is bullish, and the weekly is correcting, and the daily is correcting will be still buying daily bullish discount arrays at or nested in a monthly
35 00:06:33,870 --> 00:06:42,720 discount array. That means there may be a monthly bullish order block that is trading down into or it's trading to close in a monthly liquidity void or fair
36 00:06:42,720 --> 00:06:50,520 value gap. Or maybe trading back to an old high or an old low. But we're going to be getting our information from the monthly chart. So while the weekly and
37 00:06:50,520 --> 00:06:59,100 daily may look bearish, if the monthly still has its conditions, it showed a displacement higher that means on a longer timeframe. They're bullish they've
38 00:06:59,100 --> 00:07:06,960 been buying. All it's requiring is the weekly and the daily to retrace lower to get another long term buying opportunity. And that's what you'll be focusing on
39 00:07:06,960 --> 00:07:17,310 by looking at nested or monthly discount arrays trading only those buying at that level. And we can buy for our bullish discount arrays at weekly and or
40 00:07:17,310 --> 00:07:30,030 nested monthly bullish discount arrays. Avoid buying weekly discounted rates if the Weekly has just posted a higher high and rejected that price high. And
41 00:07:30,030 --> 00:07:37,380 you're probably seeing a bearish breaker on a weekly chart and you don't want to be trading in this monthly, weekly daily sequential in that condition.
42 00:07:42,240 --> 00:07:49,350 Okay, so let's take a look at this example. We're gonna be looking at Silver. And we're gonna outline some of these ideas and give you some examples on what
43 00:07:49,350 --> 00:07:57,930 this looks like for high probability swing trading. Okay, folks, we're looking at the monthly chart of silver. Now, I'm going to take some Liberty here,
44 00:07:58,230 --> 00:08:09,450 because I'm pretty confident that the majority of your listening that are in this mentorship, been aware that I've been calling for silver to be bullish,
45 00:08:09,630 --> 00:08:21,030 okay. I was expecting bullishness back in 2015. And also expected some bullishness around that 1600 level after the retracement that was seen in 2016.
46 00:08:21,120 --> 00:08:30,000 But with that said and noted, I want you to take a look at the monthly chart here. And we're gonna outline some things. Now I'm going to assume for a moment
47 00:08:31,380 --> 00:08:42,300 that you're going to permit me the liberty of discussing this without having to hide all of the price action, I'm gonna hang my hat on the fact that I was
48 00:08:42,300 --> 00:08:50,010 already expecting these things. And you know about it, we already talked about it in advance. So we're not going to have to do additional work in hiding things
49 00:08:50,010 --> 00:09:00,420 because they were already in the content shared before the fact in terms of expecting higher prices on silver. But when we're looking at Silver, okay, I
50 00:09:00,420 --> 00:09:18,210 want you to take a look at what we have done historically, in the last 10 years or so. We had a really big run up in 2009 2011. And we saw price break away in
51 00:09:18,210 --> 00:09:29,880 here. We've had a really huge surge in silver, their price came all the way back down and closed in that area, that little gap in here. That's what price came
52 00:09:29,880 --> 00:09:39,360 down and hit. Okay, so we're gonna be mindful that we can see the historical reference point which caused this load of form. And why I was looking for silver
53 00:09:39,360 --> 00:09:50,070 to be bullish back then anyway, but Is this our range or determination? Are we in a market profile that's trending or are we in a consolidation? Obviously,
54 00:09:50,070 --> 00:10:03,960 there's been a rather large displacement this swing high has been violated here, and this occurred back in June. 2016 April. So April broke that swing high here
55 00:10:03,960 --> 00:10:20,280 that was a nice big displacement higher. So there was a big move into silver in 2015, and we carried over into 2016 price comes back down, consolidates and has
56 00:10:20,280 --> 00:10:37,470 another expansion here, trades all the way back up into these highs. Now we have created a range, we have this low to this high. Now we know all during this time
57 00:10:37,470 --> 00:10:47,820 period, which we were bullish on silver nonetheless anyway. So we have monthly breaking market structure, big displacement in price, we even took out another
58 00:10:47,850 --> 00:10:58,050 swing high back here. So monthly is bullish. Okay, even while it's all correcting lower here, all these down candles, this high been broken, big
59 00:10:58,050 --> 00:11:08,190 displays, not the 1400 level. And we broke market structure on this high here as well. So we have a bullish monthly. Okay, so we're going to outline a few things
60 00:11:08,190 --> 00:11:25,410 on this chart. I'm just gonna use horizontal lines here to save some time and make things easy to see. Alright, so we have the 1560 level, the last big down
61 00:11:25,410 --> 00:11:34,320 candle and here, the actual high. And so to be fair, and let you know what it is the high comes in it 1556. So if we're above price, we look forward to get to
62 00:11:34,320 --> 00:11:43,140 the nearest round number, which would be a 60 level, you can expect to get down into 50, the market price is above your level you're looking for you want to be
63 00:11:43,440 --> 00:11:54,090 conservative and in China, not expect that exact level to be hit. So we're having 60 level here, it could be 15 ad, it could have been used as well. But
64 00:11:55,230 --> 00:12:08,310 nonetheless, we'll drop down until weekly chart and see the importance of all that. And we have our high back here. So we have our low, but we're going to
65 00:12:08,310 --> 00:12:17,880 stick at 1400. Because that was the level of keyed off of and it's not that big of a difference in terms of where we're looking for we have a range defined
66 00:12:17,880 --> 00:12:18,180 here.
67 00:12:19,679 --> 00:12:26,939 And I'm going to take the shaded area off. Because we've already arrived at we are in a trending environment because it's wanting to move higher. It's not like
68 00:12:27,239 --> 00:12:37,079 sitting in this little tile consolidation here, it really moved on the monthly. So there's big money flowing into silver, and has been since 2015. Okay, here we
69 00:12:37,079 --> 00:12:52,259 are with the silver chart on a weekly basis. And here's that move away from that 1400 area. And here's our 1560 level, anticipating a move to that level for the
70 00:12:52,259 --> 00:13:02,879 monthly bullish order block. But now look what we have, we have another level in here for the weekly. So you have one, two down candles right before a nice big
71 00:13:02,879 --> 00:13:16,319 surge in price. So this level begins at the high. And we would use the opening on this candle as a conservative price point as well. But we're going to be
72 00:13:16,319 --> 00:13:26,879 fair, this used to high and it also puts us below these candles bodies back here. We'll refer to that in a couple minutes. But look at the price out comes
73 00:13:26,879 --> 00:13:40,589 down hits this level here. Okay, right in here. Now think about what we were seeing here, we have the monthly breaking a short term high and price rallying
74 00:13:40,739 --> 00:13:51,839 higher through and then and the weekly starts trading lower in the same time that we expect the monthly to send price higher. So while there's a retracement
75 00:13:51,839 --> 00:14:04,589 lower on the weekly chart, while the monthly is bullish, what we do is we wait for price to trade back down into a level that was discerned by the monthly
76 00:14:04,949 --> 00:14:17,039 because a while monthly is bullish, we're seeing weekly prices trading softer. And price comes back down into a weekly bullish order block which is the last
77 00:14:17,039 --> 00:14:26,639 few down candles in here. So we can highlight that because now on a weekly chart, we can see this level becomes a valid order block. We can keep that level
78 00:14:26,639 --> 00:14:41,729 at 1560. But just to keep things clear, I'm just gonna adjust as we go. So we have this level here. Price hits it reacts aggressively, and then price trades
79 00:14:41,729 --> 00:14:51,329 all the way up into making that high. And then we have since seeing that monthly chart correcting. Now just because the monthly charts correcting doesn't mean it
80 00:14:51,329 --> 00:15:00,929 hasn't changed its underlying bullishness. But look at the weekly chart. The weekly chart is moving lower. So now we have a monthly weekly Daly sequential
81 00:15:00,929 --> 00:15:12,359 where the monthly is bullish. And the weekly is bearish. And it goes without saying that the daily would be bearish in here as well. But you would be
82 00:15:12,359 --> 00:15:26,399 expecting price to trade back down into a monthly level. So we have all these down moves in the weekly. The sequential says for monthly, weekly and daily if
83 00:15:26,399 --> 00:15:42,419 the weekly is bearish while the monthly is bullish, you have to wait for price to trade back down into what a monthly discount, right? That was the 1560 level
84 00:15:42,419 --> 00:15:56,819 that we identified price trades down into that 1560 level. Low comes in 1560 and rallies away. Notice also it trades down below an old low and rejection block
85 00:15:56,819 --> 00:16:07,409 below the bodies of these candles, trades through it takes another short term low here. So there's sellside liquidity and a gap between price moving up from
86 00:16:07,409 --> 00:16:19,619 here, left it open because it didn't go down all the way to this level again, on this low. So closing that gap and price surged away. What we're going to do is
87 00:16:19,619 --> 00:16:31,979 we're gonna look at in this timeframe here from the formation of the high all the way down to this level here, we're going to drop down into a daily timeframe
88 00:16:32,009 --> 00:16:39,089 and we're going to use the monthly weekly and daily sequential. Okay, so we have the daily chart here you can see how it's been trading lower, lower, lower,
89 00:16:39,089 --> 00:16:51,659 lower, lower, and until it hits that monthly bullish order block. We don't see the reaction that we would expect for bullishness, but we did keep seeing lower
90 00:16:51,659 --> 00:17:06,209 prices here. You can be a buyer. Okay, on this, regardless of it being correcting lower, okay, when the monthly is bullish, and the weekly and daily
91 00:17:06,209 --> 00:17:18,569 are bearish, you're going to wait for your best opportunity to trade down to the monthly level if the monthly is bullish, and the weekly is bullish.
92 00:17:19,950 --> 00:17:30,510 Okay, and let's go back out to a weekly chart, price is trading down into that monthly level and it's also inside of a weekly bullish order block as well. So
93 00:17:30,510 --> 00:17:41,280 now we have the monthly chart and the weekly chart and agreement. So now we can look at the daily chart when it's in correction or going lower, we trading off
94 00:17:41,280 --> 00:17:52,620 of a weekly and or monthly nested order block to be a buyer on daily timeframe. And every time price trades down into the down candles on a daily chart we can
95 00:17:52,620 --> 00:18:02,130 be a buyer because we have monthly and weekly in alignment. The discount array for monthly and weekly are supporting price or we anticipate that they are
96 00:18:02,310 --> 00:18:13,350 supporting price or that they will support price. So as price starts to make higher highs, okay, we note every down candle. Okay and I'm going to do that
97 00:18:13,350 --> 00:18:32,190 now. And this is just to illustrate when prices careening down candles, you want to be noting them and what it'll do is it'll give you
98 00:18:37,380 --> 00:18:48,060 all of the now we have a new one from yesterday or Thursday rather. And we also have to note the openings of the candles
99 00:19:14,310 --> 00:19:23,520 Okay, anything more, I think would be overkill. So we have our levels here, where we do expect to see bullishness and they're not zones, okay, their
100 00:19:23,520 --> 00:19:31,560 specific price levels, the openings and the highs on the down candles as we're looking at. So now at this moment, we're going to take our little shaded area
101 00:19:31,590 --> 00:19:44,790 off and we'll create another shaded area right from this low and to present time, okay, so now we're gonna drop down into our executable timeframe, which is
102 00:19:44,790 --> 00:19:54,510 the four hour Okay, so we have all of our daily highs are down candle and the openings on those down candles. And the same thing is done. Now also on the four
103 00:19:54,510 --> 00:20:02,910 hour time frame, you're gonna see how amazing the precision is on this because what we've done is we've you Use the sequential for monthly weekly and daily and
104 00:20:02,910 --> 00:20:13,800 use those ideas with the pdra matrix only buying on discount and I'll show you what that looks like also by applying a tool but look at all of the down candles
105 00:20:14,400 --> 00:20:25,650 okay all the down candles right before a big surge in price we're going to put it with horizontal lines in here so it just stands out and pops off the chart
106 00:20:28,710 --> 00:20:31,950 okay, we had this down candle price hits it rallies
107 00:20:43,380 --> 00:20:53,010 do down candles in here using the bodies not the wick? It's it rallies okay down candle right in here. It's it trades away creates a new high
108 00:21:10,890 --> 00:21:24,480 Okay, we have this down candle here. It rallies through creates a new high trades down into it. But Southside liquidity would be where back here. It
109 00:21:24,480 --> 00:21:33,720 wouldn't hit your stop and I got yet to find a trade around those ideas. Again, this is swing trading folks. It's not day trading. So we have a level that's
110 00:21:33,720 --> 00:21:45,690 traded. At this point here. It rallies does it create a new high? No actually fails. So now we had to wait for price to trade back down into what? The daily
111 00:21:45,990 --> 00:21:54,660 look at the reaction here. Remember this little hyphenated lines, they're not elongated horizontal lines I'm showing you here with the blue lines, the blue
112 00:21:54,660 --> 00:22:03,540 lines I'm highlighting there for our these little hyphenated or shortened trend lines, okay, they're the daily bullet shorter blocks, or down candles at the
113 00:22:03,540 --> 00:22:13,110 highs or their openings. Look how price trades down through the bullish order block that would be seen on the four hour here. It violates it here. But what's
114 00:22:13,110 --> 00:22:22,110 it do? It only comes back down to what the daily look at the sensitivity there boom explodes. Okay? Price rallies up consolidates a little bit here and then
115 00:22:22,110 --> 00:22:32,400 rallies away. So now once we have this rally through liquid, it's done. It's broke a high. Okay, so it's confirmed that has done what? It's broken a high, so
116 00:22:32,400 --> 00:22:45,030 therefore there's real buying going on. So now we can go back and look at the candles in here on a four hour basis. We have one right there. Okay, but it
117 00:22:45,030 --> 00:22:55,140 doesn't get down to it. But it does trade back down into the daily bullish order block. And that's what you see there price hits it rallies away. We have a small
118 00:22:55,140 --> 00:23:10,020 little bullish order block. Right there last down candle price comes down, hits it here rallies away and creates a higher high. So now we're going to look for
119 00:23:10,020 --> 00:23:20,790 what we're going to look for the down candle prior to this high being broken up, go back down, what do you see, you see this down candle right in here. And it's
120 00:23:20,790 --> 00:23:31,860 also a order block on the daily basis. So price comes down, hits that level, and then boom, you get that surge this was that last little bit on Friday, as my I
121 00:23:31,860 --> 00:23:41,400 told you, I thought that we'd get to that at 100 level on silver. And that was the catalyst for it all. Okay. Now, you can see quickly why I do not share my
122 00:23:41,400 --> 00:23:52,770 charts like this every single time I do analysis because when I do my analysis, I have this number of lines on here. Now obviously, as you go through and you
123 00:23:52,770 --> 00:24:03,660 start moving away, I mean, you wouldn't have this or this or any of the other levels below it and keep your charts rather clean and keep the most close
124 00:24:03,660 --> 00:24:12,150 proximity levels on your chart. But by having these levels in mind, you know where the price may reach for and when you go back and you watch all my old
125 00:24:12,150 --> 00:24:19,530 stuff. Even back when I was on baby pips when I was saying that I was expecting a certain level to be sensitive. It was all of these types of things being
126 00:24:19,530 --> 00:24:29,160 employed. Now again, I'm taking liberty here and saying that, yeah, I can talk about this market, like I am doing here. And for someone that has never had an
127 00:24:29,160 --> 00:24:37,740 exposure to me or hasn't been paying attention to me in the last year or so. About silver being bullish. This would look like cherry picking hindsight all
128 00:24:37,740 --> 00:24:52,800 that business. Okay, but we've talked about silver I actually gave you on a daily timeframe. When we do our recaps and daily entries you can actually see me
129 00:24:52,800 --> 00:25:00,360 drawing the levels here saying I want to see price stay above that level here. And you know, we had a level here that I noted I said I wanted to see price the
130 00:25:00,360 --> 00:25:10,560 above that. And all these levels are in your charts. And when we talked about silver, we looked at 1800. I was talking about 1800 for a while, and also talked
131 00:25:10,560 --> 00:25:25,050 about being interested in being a buyer at 1600 Months and months ago, you know, and even though we traded down to a low of 1566, look at the sensitivity, if you
132 00:25:25,050 --> 00:25:40,860 look at the 1600 level, you look at 1600. I mean, it's pretty much to buy. And you see that big, big move up. So $10,000 worth of profit potential there. If
133 00:25:40,860 --> 00:25:49,770 you're, if you're looking to be a buyer at that 16 102 Present Levels. Now, if you look at the metals market, in the futures contracts, 1800 was actually hit
134 00:25:49,770 --> 00:25:54,450 who actually went above it, I think it's 18 or two, I think it was the intraday high on Friday. So
135 00:25:55,950 --> 00:26:10,260 when we take our setups off of these ideas, okay, what we're looking for is, okay, we have a range at which we want to see price trade from. And we know that
136 00:26:10,260 --> 00:26:20,430 there are levels on the monthly and there's levels on our weekly chart and his levels on our daily chart. And we key off of those and reduce the risk with the
137 00:26:20,430 --> 00:26:30,030 four hour chart. But when we're looking at price like this, and it's trading off that level here, we have to go and refer back to our range. Okay, so we have our
138 00:26:30,030 --> 00:26:39,450 range up here, high in the low which we anticipate seeing bullishness and rallying away, price shows that willingness to rally. But as we look for price
139 00:26:39,960 --> 00:26:50,580 to go higher, not only are we buying every down candle, or we'll buy below an old low, like price trades down below and on low and here, that's a discount
140 00:26:50,610 --> 00:27:00,060 array that's buying below an old low. So you pick up sell stops in the form of a Counterparty for you as a buyer. And price runs away from that. So you're always
141 00:27:00,060 --> 00:27:08,460 looking for where the short term lows are, where price could dip down below it and buy that. And there's no real waterblock playing here. So as price drops
142 00:27:08,460 --> 00:27:16,320 down, it's natural to expect this whole scenario. That's why sometimes you'll hear me say, I think that we're probably going to sweep down below an old low,
143 00:27:16,380 --> 00:27:25,560 like, for instance, what I talked about for Friday's intraday price action for the British pound USD pair, expected that low to be violated and rejected and
144 00:27:25,560 --> 00:27:33,180 we'd see higher prices. While it didn't get all the way up to the actual highs. It did give a nice bounce intraday, which is all based on the ideas that I'm
145 00:27:33,180 --> 00:27:40,020 showing you here, you have to have an understanding of where price should be drawn to. And we're seeing that on a monthly chart for silver. And on a weekly
146 00:27:40,020 --> 00:27:51,150 chart, we saw our levels react. And we, when we see this, we have to keep in mind that there's going to be the premium arrays where you have to aim for. In
147 00:27:51,150 --> 00:28:00,540 other words, they're going to be catalysts for you having resistance in your trades, coming to profitability. And this is why we had this level over here
148 00:28:00,690 --> 00:28:01,830 1799.
149 00:28:07,619 --> 00:28:18,359 I think it's 1798, wasn't it? Yeah, 1798 was the level a hit that on Friday, beautifully, we have a liquidity void in here price trades up into closed in
150 00:28:18,359 --> 00:28:31,319 that. That was the first objective. Okay. And then after this, we have a little bit more of this void in here. But now think about what we have done. We have to
151 00:28:31,319 --> 00:28:41,789 consider what what negates our trades if we see a breaker. So we have a down candle right before another higher high than it's rejected. So we have this
152 00:28:41,789 --> 00:28:52,409 range in here this low. That's the reason why I called this level here because if you look at the low, it comes in at 1797. Even if it monkeys around just
153 00:28:52,559 --> 00:29:01,109 expands a little bit, which is what I was looking for the 80 100 level for. But it's that level and this level here. And that's why I was drawn that line out
154 00:29:01,109 --> 00:29:10,439 because this is a breaker in here, it made a higher high and failed, rejected and broke down. So we only look for this initially to go higher. Now we'll wait
155 00:29:10,439 --> 00:29:17,339 and see if the daily chart has a willingness to go higher. If it does, then we'll know that we're probably going to be looking for the 1920s and 20 twos and
156 00:29:17,339 --> 00:29:26,789 they're on keep on going higher, but we would use the monthly and weekly premium raised to arrive at what the next level would be. But while we're trading off of
157 00:29:26,789 --> 00:29:35,159 the daily and or for our each one of these charts back in here, when it bounced, you have this liquidity void that you would be looking to see filled in, okay,
158 00:29:35,159 --> 00:29:42,179 and that closes in at this candles low right here because this is the last candle wait for a down move. So that's where the selling really started
159 00:29:42,179 --> 00:29:50,039 happening at that point. You see price hits essentially right here and then pauses, creates a buying opportunity again. And then price comes down into that
160 00:29:50,039 --> 00:30:00,569 candle here, here all in the range of this body and then rallies away and one more time dips into here and then moves away. Now it took some Several months
161 00:30:00,569 --> 00:30:10,139 for this, this metal to trade up to that level. But that's swing trading, it's not overnight, it's not intraday, it takes several days. That's why we have a
162 00:30:10,139 --> 00:30:19,109 time horizon of two weeks or longer, but preferably two weeks to about a month, that's about usually when you'll see these trades pan out. So hopefully, this
163 00:30:19,109 --> 00:30:27,209 has been a little bit more insightful than just talking about things in general terms, like the teachings, I know some of you are just chomping at the bit, you
164 00:30:27,209 --> 00:30:35,819 just want to have practical application. But you can't have practical application without having theory. So I'm using examples. And Marcus, I already
165 00:30:35,819 --> 00:30:43,829 called beforehand, I'm showing you how I use this stuff, going into this particular pairs and these metals, and told you why I believe they were going to
166 00:30:43,829 --> 00:30:51,089 go to that level. Now you have the background behind it, what was the catalyst behind it. And when you do as you go through your charts, and you note all of
167 00:30:51,089 --> 00:30:59,429 the discount arrays, and you look for those, those buying opportunities to get you in sync with what you saw on the monthly and the weekly, and the daily, and
168 00:30:59,429 --> 00:31:07,679 you can reduce down to a four hour chart for Swing Trading, and really refine all of the levels down to a smaller timeframe. So it keeps your risk small. Even
169 00:31:07,679 --> 00:31:16,019 if you are off the trading desk, intraday, you know what you have a job or running a business, you can use a four hour chart, okay, just check your charts
170 00:31:16,199 --> 00:31:22,709 a couple times a day, and you only have to check it like an hour before the kill zones. And then you have all kinds of opportunities where you can reduce the
171 00:31:22,709 --> 00:31:30,479 risk or look for liquidity pools, the key off of and you don't have to really be a day trader. But it's not necessarily though, you can just trade right off the
172 00:31:30,479 --> 00:31:44,489 four hour chart and be fine with that as well. Okay, I'm gonna show you how you can apply a tool in Mt four. You're gonna go to Fibonacci expansion, and click
173 00:31:44,489 --> 00:31:58,259 on that. And we're going to measure a range, so we can keep it in terms of our defining of a PDE array matrix. So they were low, up to our high dropout rate on
174 00:31:58,259 --> 00:32:13,979 the high end, you're going to drag that back down into the low you just pulled from. Okay, so you have to 100 level, the high and the zero low, which is the
175 00:32:13,979 --> 00:32:20,639 low, you're always going to draw it this way. It's never going to be inverted. Like you could do a Fibonacci and all that business. Like a retracement type
176 00:32:20,639 --> 00:32:28,169 thing. That's not how you do this. Okay, what you're doing is you're anchoring from a low up to a high and drag down the second line back down to that anchor
177 00:32:28,169 --> 00:32:43,739 point. Okay, so it's gonna look like this every time a small little triangle, if you will, to the right. Okay, so we have several levels in here indicated. And
178 00:32:43,739 --> 00:32:57,719 we'll show you what they look like go into the expansion properties. And this is how they are. You have the point three, Fibonacci extension 30. The one level
179 00:32:57,719 --> 00:33:06,179 which is going to be the 100 level. Okay, you just double click on No area, if you wanna make any changes, change it to whatever you want to classify it. Point
180 00:33:06,179 --> 00:33:08,369 20 point 80.
181 00:33:12,180 --> 00:33:22,200 Point 90, zero, and point five, which is equilibrium. And if you ever want to this is Adela, we're going to click on that type in the numbers I just gave you,
182 00:33:22,380 --> 00:33:33,870 and type it in over here, what you want to use as your descriptor, and then okay. And there you go. Okay, so we have the equilibrium price point here.
183 00:33:35,190 --> 00:33:50,580 Everything north or above it would be the premium PD arrays. And from equilibrium below, down to the zero level is your discount PD arrays focusing on
184 00:33:50,880 --> 00:34:03,390 the range defined here, that way you can then work out where your premium arrays are and what your discount rates are. So let's do that here. You can see how all
185 00:34:03,390 --> 00:34:16,920 this stuff outlines price pretty efficiently. Okay, we're gonna make this. Now you don't need to do this, I'm just showing you to illustrate graphically.
186 00:34:17,370 --> 00:34:28,020 Because I know some of you need to see these types of things to make it easy to understand. So you have basically RPD array matrix in actual price, you can see
187 00:34:28,020 --> 00:34:40,680 how price comes down into the 30 level. That is basically a deep discount. The deepest discount is 20. I don't like to see anything less than 20 and premium at
188 00:34:40,680 --> 00:34:51,360 80. Deep, deep or very expensive, if you will, premium at the 90 level and I don't like to see any new Long's in these levels here. And I don't like to take
189 00:34:51,360 --> 00:35:08,580 any new shorts down here. So if we take our chart and move on over to after we take off our levels now, we can go into the weekly. Now notice what this is done
190 00:35:08,580 --> 00:35:18,540 for you. Okay, you have all of these retracements, lower, lower, lower, lower. Okay, on a weekly timeframe, you have a small little bullish order block right
191 00:35:18,540 --> 00:35:30,840 in here. Okay? Did it pop a little bit, but it did make a new high. Why look where we're at, we're in the premium side of the marketplace on a monthly. So
192 00:35:30,840 --> 00:35:45,630 our range defined on a monthly basis, up here, bullish Otterbox are not going to be as favorable as if they were down here. Down candles comes down until it hits
193 00:35:45,630 --> 00:35:58,740 it by the algorithm is allowing price get down into a discount. So traders on an institutional basis can pile on their lungs, then price will expand and go into
194 00:35:58,740 --> 00:36:14,670 a premium. If we look at the marketplace in terms of the weekly, okay, and we look for price to come all the way back down into a level of that 1560 level.
195 00:36:15,120 --> 00:36:26,010 Remember, I had that on a monthly basis, that weekly waterblock. Here, even if we weren't looking at the monthly, you can see the importance of having this in
196 00:36:26,010 --> 00:36:33,870 your charts. Or at least having it understood in your charts, you don't have to draw it out. Initially, you may need to do this need to put lipstick on your
197 00:36:33,870 --> 00:36:42,120 chart to show like this. But over time, you will see clearly you'll need to do it and you'll know where the premium and discount spectrums are in relative
198 00:36:42,120 --> 00:36:49,980 terms to the current trading range you're working on. But look at the market trades off of this level. Now I took it to get down into discount to do this.
199 00:36:50,970 --> 00:36:59,940 And price rallies up rather aggressively. Now we're back into the premium side of the spectrum, we can go down to a daily timeframe also. And this is
200 00:37:06,780 --> 00:37:18,810 okay, you can see how price responds again, off the order blocks that are inside of the discount spectrum. And all of the order blocks on the premium side of the
201 00:37:18,810 --> 00:37:27,720 range. You can see how they while they did cause a little bit of buying opportunities in here they have small little pops, they are not as strong as
202 00:37:27,720 --> 00:37:37,620 they would be is a trader taking them down inside of the lower end of the spectrum for the discount side. So you're looking for the range at which price
203 00:37:37,620 --> 00:37:50,280 traded in. And when you're up here, the buy side is going to be hard to pan out. But they're shorter blocks. You can see those axes have a lot of influence on
204 00:37:50,280 --> 00:37:59,760 price while we're in the premium side. But then we get down to the discount side over here. A bearish order block over here doesn't do anything to hold that
205 00:37:59,760 --> 00:38:06,150 price. Because it's in a discount to the algorithm we'll just keep pressing through. And that's what you want to be seeing. You want to be seeing all
206 00:38:06,150 --> 00:38:14,760 bearish order block for up candles right for down moods, you must see them being broken as potential resistance points, just giving what and every down candle
207 00:38:14,940 --> 00:38:24,090 providing support. So hopefully this has been insightful to you guys and help build some ideas about swing trading. I'm going to give you the sell side of the
208 00:38:24,090 --> 00:38:33,870 marketplace in lesson five. And then we're going to go into actual setup type scenarios where this is just the framework and how to interpret when prices
209 00:38:33,900 --> 00:38:44,100 really poised to move in a swing trading mindset. But if it isn't doing these types of things, you can't just go in here and take an order block or buy an old
210 00:38:44,100 --> 00:38:55,920 low once it's been traded below it and assumed it's going to be a swing trade. swing trades are by definition very rule based. They're not ambiguous. Okay?
211 00:38:56,850 --> 00:39:05,610 Sometimes day trades can be rather ambiguous, if there's going to be a lot of things that can flip back and forth intraday, because it's so noisy timeframe.
212 00:39:06,210 --> 00:39:14,340 When you're looking at these monthly, weekly and daily levels, there isn't a lot of them. So therefore, everybody has been waiting for these levels to be traded
213 00:39:14,340 --> 00:39:23,970 to on an institutional basis. That's why they're so sensitive, because everybody is waiting for that same level institutionally. And when they all pile in, who
214 00:39:23,970 --> 00:39:32,850 are those players, they're the very dogs that make this market run. And all we want to do is be a flea on their back and be a part of that move. So we watch
215 00:39:32,850 --> 00:39:41,850 and wait for these monthly, weekly daily levels when they occur. It's hard not to make money doing this. So hopefully this has been insightful to you guys.
216 00:39:42,540 --> 00:39:45,090 Until I talk to you next time. I wish you good luck and good trading