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85-ICT Mentorship Core Content - Month 9 - Trading Market Reversals

Last modified by Drunk Monkey on 2022-10-17 10:11
1 00:00:11,160 --> 00:00:22,620 ICT: Okay folks, welcome back to Lesson five of the May 2017. ICT mentorship, ICT amplify day trading and scalping this lessons teaching trading market
2 00:00:22,620 --> 00:00:23,310 reversals
3 00:00:29,310 --> 00:00:40,080 Alright, market reversals, I'm going to cover the eight reversal that I think that can be effectively traded with consistency. And the first one we're gonna
4 00:00:40,080 --> 00:00:49,140 talk about is trading previous day's highs. And what we're doing is we're looking for opportunities where the market will blow out the previous high or
5 00:00:49,140 --> 00:01:02,250 previous day's high specifically, read the buy stops and then reverse and trade lower. There's certain criteria that I like to look for. And back on baby pips,
6 00:01:02,250 --> 00:01:16,440 when I first introduce myself to the Forex community at large, they are given a exercise by me to buy and sell previous day's highs and lows. And that exercise
7 00:01:16,440 --> 00:01:29,310 was to draw your attention to the fact that there are instances that will lead you to seeing opportunities. By rating the previous day's lows, sell stops, and
8 00:01:29,790 --> 00:01:40,980 reading the previous day's high for buy stops. Not every previous day's high or low is the same in terms of an opportunity. But there's a criteria that I look
9 00:01:40,980 --> 00:01:53,460 for when I'm looking at the previous day's high. There's buy stops above that previous day's high. There's banking levels, there's intraday algorithms that go
10 00:01:53,460 --> 00:02:02,490 up to those previous day's highs and down there is previous day's lows to seek liquidity that will be resting below or above it, respectively. Knowing the
11 00:02:02,490 --> 00:02:14,250 conditions that leads to a raid on the buy stops on the above the previous day's high is one of the gems of this teaching. And conversely, the opposite is seen
12 00:02:14,250 --> 00:02:22,050 when we're looking for previous day's lows, where the market rates the sell stops and then reverses. Again, in this teaching, I'm going to give you like one
13 00:02:22,050 --> 00:02:32,580 of the little gems in my my repertoire, where I look for previous day's lows and previous day's highs to be rated out. And then a directional bias is seen as a
14 00:02:32,580 --> 00:02:46,110 reversal. I get a lot of questions a lot over the years. You know how? How can I sell above an old high and not fear it continuing going higher? And or how can I
15 00:02:46,110 --> 00:02:55,650 buy below a previous low and not fear it keeps trading lower? Well, number one again, I've said this many times in free tutorials and all throughout this
16 00:02:55,650 --> 00:03:07,110 mentorship. I don't know with 100% assurity what price is going to do. But I do have a collection of generic scenarios that tend to repeat themselves. When
17 00:03:07,110 --> 00:03:16,830 there's other facts, there's incorporated in those conditions. By itself, you know, we don't simply just go in here and try to sell an old high or buy old
18 00:03:16,830 --> 00:03:29,790 low. It has to be other things that blend well with all the teachings I've already given you thus far. Another reversal I like to trade is the intra week
19 00:03:29,790 --> 00:03:41,310 high where the market trades above the highest high it's made for the week so far, rates the buy stops and then reverses. Now and I give you the scenario, I
20 00:03:41,310 --> 00:03:48,960 want you to think in terms of those weekly templates that provide to you earlier months. Those templates in conjunction with the conditions that we're talking
21 00:03:48,960 --> 00:04:00,840 about here. They will unlock as we get closer and closer to August where you get a basically a flowchart format from top down where we go right into specific
22 00:04:00,840 --> 00:04:11,490 concepts for specific conditions. But for intra week highs, what I like to do is look for scenarios where the market has already been trading, for instance,
23 00:04:11,490 --> 00:04:22,320 higher for a period of time, and we have yet to meet a premium array that eventually gets traded up to say maybe on a Tuesday or Wednesday or Thursday,
24 00:04:22,620 --> 00:04:32,610 and it hits that on that particular day. But it also does it on the heels of running out of previous intro week. Hi, I really liked that scenario because
25 00:04:33,030 --> 00:04:41,730 traders are going to be looking to have their buy stops above that initial intra week high. For instance, it could have made a high on Tuesday and then trade
26 00:04:41,730 --> 00:04:54,090 higher on Wednesday up into a higher timeframe premium array wants that higher timeframe premium or a is traded to it's coupled with biceps that we resting
27 00:04:54,090 --> 00:05:04,590 above for instance, Tuesday's highs. So traders that would be looking to sell short on to Because maybe data is Tuesday can create a false decline or a false
28 00:05:04,590 --> 00:05:12,510 high. And then Wednesday, we'll come up here and blow it out. And then that's the high of the week. Think about this weekly templates. This is one of the
29 00:05:12,510 --> 00:05:19,590 scenarios I like to look for. And those raids on those buy stops, I'm going to be selling right into that same liquidity pool, just like the banks will.
30 00:05:22,680 --> 00:05:32,850 Okay, Ops is obviously seen in the form of an intra weak low, where we see the lowest low and the weak, be violated on the downside, and the sell stocks be
31 00:05:32,850 --> 00:05:43,560 rated. And the market reverses. Now, again, for day trading purposes, and scalping, it's, these are really high odds trades, where even if it doesn't
32 00:05:43,560 --> 00:05:55,410 continuously move higher as a reversal, many times you get a tradable bounce that is 3060, even 80 pips depending upon what type of market environment you're
33 00:05:55,410 --> 00:06:05,400 looking at, or what you're trading in time. But the weekly, low that's formed in the middle of the week. Now, that could be Monday, it could be Tuesday, it could
34 00:06:05,400 --> 00:06:18,390 be Wednesday, be Thursday, whatever that low is, if it's traded down below it into a higher timeframe discount array, that coupled with the running out of a
35 00:06:18,390 --> 00:06:27,210 previous intra week low to take their cell stops out for those individuals that want to try to capture a long, they're gonna be premature many times and the
36 00:06:27,210 --> 00:06:36,510 market makers will engineer liquidity for that very thing to happen. So for instance, if there was a low of the week on Tuesday, and it rallies up, and then
37 00:06:36,510 --> 00:06:45,690 Wednesday, it trades down below Tuesday's low, but then on that Wednesday, it hits that higher timeframe discount array, it could be a fair value gap on a
38 00:06:45,690 --> 00:06:54,120 daily chart, it could be an order block on a weekly chart, it could be anything on the higher timeframe, pdra matrix, that is a one off opportunity to look for
39 00:06:54,120 --> 00:07:09,330 reversal enter week, intermediate term highs. Now this is going to be a little bit longer term, it may be a high of the previous week or a week before it. So
40 00:07:09,540 --> 00:07:19,920 it's going back a little bit more in terms of time. And what we will be looking for is a run above an old high basically, and they buy stocks that will be
41 00:07:19,920 --> 00:07:31,320 resting above that old high, they will be rated in the market reverses. Now this can be a little bit tricky, because the old highs and old buy stops that will be
42 00:07:31,320 --> 00:07:40,890 resting there are just above it. You have to look at the context of the marketplace at the time. Again, it's not just simply okay, I'm we're trading
43 00:07:40,890 --> 00:07:48,510 above an old high. So therefore, you know, it's going to be resistance This is Solitaire, no, you have to look at what is the purpose? What's the storyline
44 00:07:48,510 --> 00:07:56,700 behind why price would be permitted to trade above that intermediate term high? Yes, they're looking to take those BizStats. But there's a storyline behind it.
45 00:07:57,210 --> 00:08:08,340 Is it pairing up those orders to go in to an exit of Long's? Or is it going up here to engineer liquidity to put people on the wrong side of the marketplace
46 00:08:08,340 --> 00:08:18,660 and then go lower? Those ideas have to be at least considered when you're looking at it. So not every old high is wanting to be selling short that many
47 00:08:18,660 --> 00:08:25,530 times it's going to be trading through an old high and can continuously go through it. So you have to look at the context of the marketplace, at your
48 00:08:25,530 --> 00:08:37,020 current time of analysis and weigh out whether or not are we in a mood that's going to most likely continuously go through that pie? Or are we due to to
49 00:08:37,020 --> 00:08:47,880 reverse because above that old intermediate term high fulfills a higher timeframe? pdra? Or does it go above that high after a long prolonged uptrend
50 00:08:47,940 --> 00:09:01,290 where logical profit taking would be met. And obviously, the reverse will be seen as an intermediate term low where last week's low or a couple of weeks ago,
51 00:09:02,460 --> 00:09:12,840 previous month, that type of scenario where a price trades down below that old low and it reads the sell stops and then the market reverses. Just as we said
52 00:09:12,840 --> 00:09:22,770 with the intermediate term highs, we don't simply just buy the sell stops. And it has made a reversal of every old low. There has to be a context that's used.
53 00:09:22,770 --> 00:09:31,800 What's the storyline again? What is the purpose for the market makers to permit price to trade down below that old low? Is it scooping up sell stops to use as a
54 00:09:31,800 --> 00:09:41,370 exit for their short positions they've been in? Or are they looking to knock off those individuals that were already going long anyway, knock them out and unseat
55 00:09:41,370 --> 00:09:56,730 them and take their long positions over. Okay, New York session reversals. Now. When we look at New York session, generally it's a continuation. The
56 00:09:56,730 --> 00:10:05,160 characteristic of New York I like to view first and foremost it's continuation generally, of what was already established in London, if London was a bullish
57 00:10:06,899 --> 00:10:16,919 rallying, making the low of the day, that means I'm going to be first looking for signs that there's a continuation on that move, going higher from New York's
58 00:10:16,919 --> 00:10:28,949 open going into London, it's close. But there are instances where that if London creates a low that day, or what would be initial low the day, it rallies up and
59 00:10:28,949 --> 00:10:39,269 goes into New York, but then New York, reverses and goes lower, and then you end up having a lower close on the day. That occurs when the markets trade into a
60 00:10:39,269 --> 00:10:49,019 higher timeframe. Premium array, in this case, as I was outlining, or the reverse is seen, if London starts trading lower, creates the high the day, the
61 00:10:49,019 --> 00:10:59,279 New York creates the low the day, reverses and ends up closing higher on a day, above all the range that was created in London. So there's New York session
62 00:10:59,279 --> 00:11:11,909 reversals. They occur when price eventually trades to a higher timeframe discount or premium array. And the London close, everything I just mentioned for
63 00:11:11,939 --> 00:11:22,469 New York session reversals applies to London close, but also intraday, obviously on large range days, when we have a five day average daily range that's
64 00:11:22,469 --> 00:11:34,799 exceeded. For instance, a we have an average daily range for the last five days in the euro dollar. And today's ATR for last few days is indicating that it
65 00:11:34,799 --> 00:11:47,909 should be 100 pips. Well, let's say it rallies 160 pips. When we get into 10 o'clock and 11 o'clock in the morning, New York time, you can anticipate a
66 00:11:48,299 --> 00:11:56,639 London clothes reversal for the intraday scalp where price will want to come back a certain measure of that range, and we'll talk about that later on. But
67 00:11:57,149 --> 00:12:06,959 London clothes can be a reversal of sorts, just like I outlined for New York, but it also always has the potential to create an intraday scalp. But I like to
68 00:12:06,959 --> 00:12:16,979 only do it when the average daily range of the last five days has been exceeded at least one and a quarter to one and a third percent. In other words, if it's
69 00:12:16,979 --> 00:12:29,429 100 pips, ADR, I want to see 125 pips or 130 pips like that or more. And then at 10 o'clock going into 11 o'clock, if I see some measure of weakness over it
70 00:12:29,429 --> 00:12:41,129 fulfills the numbers as we talked last, less than before this one, you'll learn that there is a measurable and tradable retracement back into the daily range.
71 00:12:41,159 --> 00:12:50,039 But I don't like to do that type of trade when the range is smaller than the last five days average daily range. Or if it wasn't really explosive, the better
72 00:12:50,039 --> 00:12:58,889 trades are when the market has a real big extrapolation one sided, and it moves a lot real quick, then it London close you generally get a lot of profit taking
73 00:12:58,919 --> 00:13:10,169 on an intraday basis. And you can see some retracement of that total daily range. So when we're focusing for market reversals, we're looking for number
74 00:13:10,169 --> 00:13:20,879 one, a clear indication that it wants to go the opposite direction. But let's look at each one of these a little bit more detailed. Alright, trading previous
75 00:13:20,879 --> 00:13:30,419 day's highs and lows. Now again, looking at this example here, this is pretty much what I was trying to get people to look at when I came on the scenes and
76 00:13:30,419 --> 00:13:39,509 baby pips, and I said, Look, you know, let's take a look at the previous day's highs and lows and see if there's any reversal characteristics there. And again,
77 00:13:39,509 --> 00:13:49,979 it's to get people thinking that how the market moves after running, buy stops and sell stops. For the most part, the neophytes that you haunt these forums,
78 00:13:50,429 --> 00:13:58,199 they're always in, in confusion. They're always trying to figure out what they should be doing. And they're chasing things that don't lead to a greater
79 00:13:58,199 --> 00:14:08,549 understanding. So generic things like time of day, highs or lows formed in London, the opposite end of the range and London close forms. New York is
80 00:14:08,549 --> 00:14:17,789 generally a continuation. Rarely will it become a reversal in New York, but times when it reaches its higher timeframe. pdra. That's when you anticipate
81 00:14:17,789 --> 00:14:26,219 that New York session becoming a catalyst for reversal? Well, when we look at previous day's highs and lows every single trading day, you should always refer
82 00:14:26,219 --> 00:14:36,449 to how price traded today. After the close in relationship to the previous day's range game we work the daily high or the daily low of the previous day, or the
83 00:14:36,449 --> 00:14:45,329 day prior to it or the day prior to it. So what you're doing is you're always referring to the last three days. Counting today is one day you'll see that
84 00:14:45,329 --> 00:14:56,969 there's a lot of influence over that liquidity that's resting above or below those respective days highs and lows. Now there's two circumstances that when
85 00:14:57,359 --> 00:15:06,479 we're looking to fade the price beyond the previous day's range There's characteristics there's things that we look for. And in my opinion, this is kind
86 00:15:06,479 --> 00:15:06,779 of like
87 00:15:08,099 --> 00:15:16,049 the crown jewel of this particular teaching. During expansion swings, there are smaller retracements that typically create opportunities where the previous
88 00:15:16,049 --> 00:15:24,179 day's low is rated than price rallies higher. In opposing expansion swings, there are retracements that create opportunities where the previous day's high
89 00:15:24,179 --> 00:15:37,169 is rated, then price declines. Obviously, it's the concept of turtle soup, which is a false break above an old high or false break below an old low, but it's one
90 00:15:37,169 --> 00:15:45,419 step further than that. Okay, so when we're looking at previous day's highs and lows, when is it that I'm really looking to trade below the previous day's low
91 00:15:45,419 --> 00:15:56,909 to be a buyer or above the previous day's high as a seller? Well, I'm looking to trade the previous day's low and I mean, dissipating higher prices. In this
92 00:15:56,909 --> 00:16:06,119 example, you can see price was moving higher as a part of a larger expansion swing, and during a normal retracement lower into a fair value gap. Price finds
93 00:16:06,119 --> 00:16:14,009 buyers under the previous day's low using the previous day's low and anticipating a market reversal after the previous day's lowest rated one can be
94 00:16:14,009 --> 00:16:25,379 a buyer intraday. So take a look at this candle right here. This candle open, trades down in closes in the fair value gap, then rallies up and has a higher
95 00:16:25,379 --> 00:16:36,869 close candle prior to it. It notice it trades down below that candles low. So you could already be thinking about being a buyer below that candle is low
96 00:16:36,899 --> 00:16:45,659 because the fair value gap exists below and during a retracement. You're understanding the institutional order flow and a higher time frames are going to
97 00:16:45,719 --> 00:16:57,719 assist you here because while markets generally retrace those retracements what you're looking for is a move down below the previous day's low and also into a
98 00:16:57,719 --> 00:17:06,899 discount array. Like in this case, it's a fair value gap. Price trades under the previous day's low. That's where you're gonna find buyers the market trying to
99 00:17:06,899 --> 00:17:16,109 come in with a great deal of institutional sponsorship and they'll send price higher intraday. Now we look for confluences of PD arrays to support the idea of
100 00:17:16,109 --> 00:17:23,429 buying under a previous day's low but we don't simply buy under the previous day's low on the sole basis that price moves below the previous day's low, there
101 00:17:23,429 --> 00:17:34,379 has to be context behind it all. Now trading previous day's highs, if I'm bearish on the market and then institutional order flow suggested to go lower
102 00:17:34,379 --> 00:17:45,809 and higher timeframes. I like to look for reasons to see price move up into a short term premium array. And then having indicated we've seen this example here
103 00:17:45,839 --> 00:17:53,879 price was moving lower as part of a larger expansion swing. During a normal retracement higher after a fair value gap was filled notice the gap has already
104 00:17:53,879 --> 00:18:07,469 been filled. But after that gap has been filled price find sellers above a previous day's high this candle here trades above its previous candle when price
105 00:18:07,469 --> 00:18:18,899 trades above that previous day's high the market find sellers and you can be a seller that day. Now obviously, again, using context not to simply looking at
106 00:18:18,929 --> 00:18:24,419 what cable we're above yesterday's high, so I'm gonna be a seller it doesn't work like that you have to have the understanding of what institutional order
107 00:18:24,419 --> 00:18:34,919 flow is indicating. In this case we're looking for institutional order flow on the weekly the daily or for our suggesting prices are gonna go lower. If we have
108 00:18:34,919 --> 00:18:46,019 that and price trades up into a premium array and it's during a retracement. In other words it's been moving lower in our having a little bit of retracement
109 00:18:46,049 --> 00:18:56,099 bounce up. Once it goes to a premium array. That's what you couple it with. Then if it trades above the previous day's candle high, you could be a seller rate
110 00:18:56,099 --> 00:19:02,489 above the high and anticipate expansion the downside trading intra week highs.
111 00:19:04,380 --> 00:19:13,890 Now when this example we can see price was trading above equal highs on Thursday of this particular week. Now price rated the buy stock liquidity pool as a
112 00:19:13,890 --> 00:19:23,640 premium array. Now we use intra week highs and we are basically anticipating a market reversal after the buy stops are rated when you see this happen on your
113 00:19:23,640 --> 00:19:31,860 charts. This is when you can step into the marketplace and be a seller intraday. You hear me talk about movements and a lot about it in early teaching. So this
114 00:19:31,860 --> 00:19:40,380 mentorship and throughout my free tutorials to when we look for equal highs. We know that there is like Candyland as we call it, it's very easy to see that
115 00:19:40,380 --> 00:19:48,360 retail is going to have their buy stuff resting just above that. At any rate above it 10 to 20 pips above it will scoop up those buy stops and in many times,
116 00:19:48,480 --> 00:19:57,630 banks will go in and sell right into that and that'll give you your day trade as a short. Now, obviously like we said with everything else, we're not looking
117 00:19:57,630 --> 00:20:06,960 just to sell right above an old high are even old, equal highs, because sometimes old equal highs can be just targets for a longer term price move
118 00:20:06,960 --> 00:20:16,410 higher. But when the conditions are suggesting that we're in a neutral state, in other words, we're consolidating, or we're getting ready to turn the tide, if we
119 00:20:16,410 --> 00:20:24,960 got to a higher premium array, which would be exhibiting just above the equal highs in this case here. If we see confluences of PDA raised to support the idea
120 00:20:24,960 --> 00:20:36,090 of selling up all the intra week high, then we can step in as a seller at London or New York. But also think in terms of what price may be unfolding in terms of
121 00:20:36,090 --> 00:20:47,310 overlapping these reversal concepts. See, we have a Tuesday Hi, and in Wednesday had a slightly lower high. But it's basically equal highs, we know there's going
122 00:20:47,310 --> 00:20:57,330 to be biceps above that. So on Thursday price rallies above it. At that time, it can also be seen as a New York reversal. So you're blending a couple of
123 00:20:57,330 --> 00:21:06,150 different things. When you see an overlap of these types of reversal concepts. It makes it even stronger trading intra week lows. Now in this in this example,
124 00:21:06,150 --> 00:21:17,850 we see price was trading below the equal lows on Tuesday of this particular week. And price rated the Sell Stop liquidity pool as a discount array. Now, if
125 00:21:17,850 --> 00:21:27,540 you look, I've shown a load that was from the previous week as the double vertical lines as a Sunday, you have equal lows on the previous Friday and on
126 00:21:27,540 --> 00:21:38,400 Monday. So those two equal lows are traded down through on Tuesday, violating that old low. So you have an intra week low that can be blended in with the
127 00:21:38,400 --> 00:21:48,390 previous week's range as well, especially if the reversal occurs on a Monday or Tuesday as we see in this case here. Now using intra week low and anticipating a
128 00:21:48,390 --> 00:21:56,790 market reversal after the sell stocks are rated, you can be a buyer on an intraday basis. Now, again, like we just said, with the intra week highs, we're
129 00:21:56,790 --> 00:22:07,470 not just simply looking to be a buyer below an old low or eat below equal lows, there has to be a context, the move that drops down I want to Tuesday below
130 00:22:07,470 --> 00:22:18,210 those equal lows that's formed on Monday and Friday of this example in the chart that's trading down into a higher timeframe discount array. When you're staring
131 00:22:18,210 --> 00:22:26,880 at intraday charts, and you don't have any reference points on the higher timeframe, you're going to miss these beautiful scenarios where you can clearly
132 00:22:26,880 --> 00:22:33,420 see where the manipulation is going to take place and where they're gonna run the cell stops. Now, obviously, like we said with the previous examples, we're
133 00:22:33,420 --> 00:22:41,820 not just simply, you know, buying blown Ola, we're looking for conferences from the PD arrays to support the idea buying below and insure weak low. And we
134 00:22:41,820 --> 00:22:55,260 simply don't go in buying low and low just simply because the price moves beyond the intra week low. Trading intermediate term highs and lows. Alright, in this
135 00:22:55,260 --> 00:23:04,860 chart here, you can see prices trading in a large consolidation. And the periods when the market is not trending one direction, they offer ideal conditions for
136 00:23:04,860 --> 00:23:15,030 shorting above an old high and buying below an old low from a previous week or longer in time. So when we look at reference points in terms of classifying as
137 00:23:15,030 --> 00:23:29,130 intermediate term, it's beyond just yesterday. And it can be as short term as intra week or previous month or two months ago. Old lows and old highs like that
138 00:23:29,579 --> 00:23:41,369 they're gold mines, because think about who would be having their stop losses below or above those reference points. The whales, those large fund traders when
139 00:23:41,369 --> 00:23:51,029 they have their orders in those markets, they're going to be placed around these higher timeframe, highs and lows. So if the market trades back to them, they're
140 00:23:51,029 --> 00:24:01,739 gunning those stops. Now studying old highs and lows and incorporating the pdra matrix is going to assist you in finding higher odds day trades. The setups tend
141 00:24:01,739 --> 00:24:12,389 to then more in terms of dynamic response and price than that of just simply looking for what would be centered like an optimal trade entry, or looking for a
142 00:24:12,389 --> 00:24:20,579 sample order block. Again, none of my concepts are panacea is be all end all they don't stand alone, they have to be blended with other things. So when you
143 00:24:20,639 --> 00:24:30,779 incorporate the setups with the PDE array matrix and higher timeframe, institutional order flow, you're going to find dynamic reactions. And it's going
144 00:24:30,779 --> 00:24:39,929 to be always a bonus for you as a day trader because we need movement. We need to have displacement, we need to see a rapid movement to get paid before the end
145 00:24:39,929 --> 00:24:49,529 of the day. So we're always battling time. And we're always battling the uncertainty of whether or not we're going to get magnitude of our move. So while
146 00:24:49,529 --> 00:24:59,279 most statistics state that day traders don't make money consistently over time, because they Number one, don't look for the conditions that are ripe for day
147 00:24:59,279 --> 00:25:09,299 trading. This week, we had some instances where in our live sessions, we were able to call very precise what the market should be doing and where it should go
148 00:25:09,299 --> 00:25:18,809 next. There was other instances, once my objective for the week was met, you saw how I was awful my analysis, but I was not going into the marketplace and
149 00:25:18,809 --> 00:25:28,469 trading anymore. So that skill set comes by experience, you're not going to be able to do this too, simply by taking these concepts and saying, okay, plug and
150 00:25:28,469 --> 00:25:38,609 play, I'm going to be good. It takes it, you know, level of experience, doing it for a while seeing it, and developing a feel for it. And that experience factor
151 00:25:38,609 --> 00:25:49,679 can't be communicated. In a teaching it has to be well as to be earned. And you have to do that through time. Now, when a market lacks directional trend, and
152 00:25:50,309 --> 00:26:01,259 one sidedness, those conditions, they offer more opportunities to trade like this than not. So when traders that identify range bound conditions, see that in
153 00:26:01,259 --> 00:26:11,339 their charts. Once you do this several times in practice, once you see it, and examples in the past, when you find yourself, you know, on a Saturday morning,
154 00:26:11,699 --> 00:26:19,379 you wake up for anybody else gets up in the house, and sit down with a bunch of charts. Like I used to do this for years before I had children, I loved it. But
155 00:26:19,499 --> 00:26:27,449 you know, not that I don't love my children, but I love the fact that I could spend my time doing that. And I would be unread uninterrupted, I wouldn't have
156 00:26:27,449 --> 00:26:35,579 any distractions. And I could literally pour over charts and really build scenarios of why price went up here. Who would they knock them? Why would they
157 00:26:35,579 --> 00:26:44,669 not those individuals out? What was the purpose of going up there. Because when I first started trading, I thought that buyers just stopped running out of
158 00:26:44,669 --> 00:26:55,289 buyers, okay, and in the market top and there's a lot of people still teach that premise in the marketplace. That's not what it is. The absence of the market
159 00:26:55,289 --> 00:27:04,109 makers selling it to them at a higher price. They don't offer it any higher. Because believe me, if they want to offer at a higher price, they can all they
160 00:27:04,109 --> 00:27:11,699 do is offer the price. And they'll put whoever they want in that that price, because a market order is a market order to get in right now. And they can
161 00:27:11,699 --> 00:27:22,979 couple that with a ridiculous price level that would be outside the normal range. Once I understood what price was actually doing, and the behind the
162 00:27:22,979 --> 00:27:35,909 scenes view of what takes place for runs on liquidity, the concept of reversal trading was much more in my opinion, my cup of tea, I liked it, which is reason
163 00:27:35,909 --> 00:27:44,429 why my London Open strategy became like my repertoire for forex, because essentially what you're doing is you're looking for reversal patterns every
164 00:27:44,429 --> 00:27:52,469 single london session because the Judas swing when we're looking for bearish moves, it's going to be rallying higher, what we're doing is trying to time that
165 00:27:52,469 --> 00:28:03,119 intraday reversal. So these reversal concepts are large and scale with intermediate based ideas as I'm describing describing here, but it also is a
166 00:28:03,119 --> 00:28:15,929 minute to the point where we can reduce it to the London Open for Judas, the CME open for the New York, Judas and Asia. It has its Judas at eight o'clock, and
167 00:28:15,929 --> 00:28:31,139 then New York time, or 00 GMT. And then you have it also in London close on days that create London close rehearsals as we'll talk about. Okay, New York session
168 00:28:31,139 --> 00:28:31,799 reversals.
169 00:28:32,579 --> 00:28:40,859 When we look for New York session reversals obviously the first one remind yourself is that the weekly templates that are provided in earlier teachings,
170 00:28:41,189 --> 00:28:48,779 this is going to provide you the basis for studying current market structure, and then also learning to anticipate what the New York session is going to do in
171 00:28:48,779 --> 00:28:58,319 terms of continuation or reversal. Now while reversal can occur on any day of the week, we learned that certain weekly templates are more likely to unfold
172 00:28:58,349 --> 00:29:09,029 over another. Knowing the higher timeframe PD arrays and IP to date ranges the market is presently respecting scenarios can be outlined in our analysis. If
173 00:29:09,029 --> 00:29:18,599 there's a higher timeframe discount array that is below the market price, but yet has not been met yet. The day it trades down into it during London's move
174 00:29:18,599 --> 00:29:26,099 and crosses over into New York open. This is the classic New York session reversal condition. Now obviously you can reverse these conditions when you're
175 00:29:26,099 --> 00:29:39,299 looking for a opposite market reversal in the New York session. In simple terms, when we see price trade down into a discount array on higher timeframe chart,
176 00:29:40,079 --> 00:29:54,569 and it does it at the time New York opens. That is when the most likely chance of a market reversal occurring in New York session is going to be seen as long
177 00:29:54,569 --> 00:30:05,729 as New York has not traded down into a higher timeframe discount rate or up into eight Part Time Frame premium array. New York session will always be slated as a
178 00:30:05,729 --> 00:30:19,319 continuation of that was seen in the London session. So in simple terms, again, unless the New York session opens up at a premium around higher timeframe, or
179 00:30:19,349 --> 00:30:29,249 discount array on the higher timeframe, New York will always be expected to be a continuation of what we're seeing in London. So if it's a high formed in London,
180 00:30:29,759 --> 00:30:40,709 and we're expecting to be bearish, New York from a continuation that changes if London trades down lower and then crosses into New York, but New York trades
181 00:30:40,709 --> 00:30:50,969 down into a higher timeframe discount array, anticipate a market reversal going higher. reverses said When London session treats the low the day, it's been
182 00:30:50,969 --> 00:31:01,889 rallying up crosses over into New York open into a premium array. Once New York session trades up into that premium array, expect the market reversal in New
183 00:31:01,889 --> 00:31:12,749 York session, trade higher into that premium. Alright, just to go lower on the day, you expect that New York session reversal. The characteristics are simple.
184 00:31:13,139 --> 00:31:21,269 But what many of you are not getting is that you have to see it, you have to study it, you have to look at it. And if I give you one or two examples, it's
185 00:31:21,269 --> 00:31:30,089 not enough. You need to go find it in your charts and see it make notations, draw up some some notes on your charts and look at them repeatedly over and over
186 00:31:30,089 --> 00:31:40,349 and over and over again. But by having the higher timeframe PD arrays outlined on your daily transfers over to the lower timeframes. You won't be blindsided by
187 00:31:40,349 --> 00:31:48,719 these reversals when I talk about the likelihood of Senior Market reversal profile in New York session. Every time I mentioned I got 30 to 40 different
188 00:31:48,719 --> 00:31:58,409 emails from members. In our mentorship. It's always a repeating question. How do I know it's gonna reverse because I see it trading into a higher timeframe pdra.
189 00:31:59,369 --> 00:32:07,139 If it's trading up to that higher timeframe, pdra it's going to most likely reverse. There's no mystery here. It's a simple concept of knowing what the
190 00:32:07,139 --> 00:32:16,019 higher timeframe. PD arrays are, if our trading into a level that would be bearish. And it doesn't at New York, expect a reversal. It's simple as that.
191 00:32:18,809 --> 00:32:26,099 Alright, let me close reversals. Now let me close can be used for intraday reversals on large Range Days. Again, like I said, in the earlier portion of
192 00:32:26,099 --> 00:32:35,909 this video for scalps. The large rains day that exceeds its five day average daily rains tend to retrace about 20% of its total daily range at 10 o'clock in
193 00:32:35,909 --> 00:32:44,909 the morning to noon, New York time, in longer term conditions, to London close can time a market reversal that can lead to a series of days of one sided
194 00:32:44,909 --> 00:32:53,909 direction. This is best determined with the use of the weekly templates and study of the current market structure. As I indicated in previous slide about
195 00:32:53,909 --> 00:33:02,489 the New York session reversals, the same thing applies the London close time period as well. So everything that I mentioned in the previous slide about New
196 00:33:02,489 --> 00:33:10,049 York, just take New York out and put in London clothes for all the things I said without having to repeat it all. But
197 00:33:11,819 --> 00:33:21,959 there are times when you anticipate the New York session causing the reversal. And then later on London, we'll go back to that higher timeframe PD array and
198 00:33:21,959 --> 00:33:30,629 blow out the stops on the New York session, as you see here in this example. So always be mindful that even if you're expecting the New York reversal, London
199 00:33:30,629 --> 00:33:40,409 can come back and act like like we see anytime in London, London Open, you accept the high the form, it creates a high it trades down 3040 pips
200 00:33:40,409 --> 00:33:48,059 aggressively and then it comes back one more time, knock those thoughts out, and then it sells off. Well, when we're expecting New York session reversals, that
201 00:33:48,059 --> 00:33:56,549 London close can be that second swipe for those individuals that are really on the right side of the marketplace. And they're buying the reversals in New York
202 00:33:56,549 --> 00:34:04,469 or selling the reversals in New York, London close kin many times go up there one more time or down there below to knock out their stops for those people that
203 00:34:04,469 --> 00:34:16,379 were right, anticipating the New York session reversal. So if you see that occur, step right in here again, and buy it below the New York low if you're
204 00:34:16,379 --> 00:34:24,569 looking for a bullish New York session reversal. If it comes down again in London, I'll step right back in there again and buy it again. And in many times
205 00:34:24,569 --> 00:34:33,329 you'll get really wicked low pricing, and it quickly moves away the other way and everything's reversed on the sell side. But as you see in this example of a
206 00:34:33,329 --> 00:34:43,319 reversal occurred on the Wednesday, at London close this price occurred. And the reversal occurred at a higher timeframe discount Ray and was expected to trade
207 00:34:43,319 --> 00:34:53,729 higher as a result. London like New York can reverse the market. It's not just London Open that creates the reversals. It can be done on the New York session
208 00:34:54,149 --> 00:35:04,139 and the London close. So hopefully I've taught you something with read verses here that will obviously build on your understanding. Some of you are going to
209 00:35:04,169 --> 00:35:11,699 be scratching your head saying, well, I need a little bit more refinement. And I'm going to tell you that that comes in time. It comes with many examples. It
210 00:35:11,699 --> 00:35:22,169 also comes with the later months teaching. That brings us to how to study these reversals. Now the best place to go is unify your charts. Okay? The best
211 00:35:22,169 --> 00:35:31,319 practice is to first scour through your price charts for examples of all of them, experienced seeing them how they form is crucial. They will many times be
212 00:35:31,319 --> 00:35:37,919 very similar in a lot of ways, but then there's going to be some things they're going to differ. These subtle nuances are only learned with study on an
213 00:35:37,919 --> 00:35:47,999 individual basis. In August, we'll be going through a specific set of templates that will be used for a top down approach that will lead you to a reversal
214 00:35:47,999 --> 00:36:00,509 mindset. These are the eight reversals I look for. So you'll know what to be looking for based on that specific criteria. So I understand some of you like to
215 00:36:00,509 --> 00:36:08,849 have 50 different examples. But you don't need to have 15 different examples. You just need to know what the concept is. Go into the charts and see it time of
216 00:36:08,849 --> 00:36:18,179 day study. What was the market doing? Pick one pair, go back over the last three months and outline where the reversals occurred. What was the context? What did
217 00:36:18,179 --> 00:36:26,699 they go up for, for buy stocks what they go down for for sell stops. By doing this until you go through your charts, you're not going to understand that the
218 00:36:26,699 --> 00:36:36,839 best teacher you have is your charts, and the time you spend the return of them and your personal note taking the AP peoples in this mentorship that enjoy study
219 00:36:36,839 --> 00:36:46,079 of price action, we'll build a collection of each reversal concept discussed here. Seeing how every lesson prior to these concepts fit together, you'll be
220 00:36:46,079 --> 00:36:56,309 aided in your analysis. Again, as a reminder, we never know for certain what price we'll do next, but we can anticipate generic price behavior that repeats
221 00:36:56,339 --> 00:37:02,009 over and over and over again. So until next lesson, I wish you good luck and good trading