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1 == Outline ==
2
3 ##00:31 -## Creating a simple and effective trading model.
4
5 - ICT emphasizes the importance of refining and tweaking models, rather than trying to include every tool or concept.
6 - Trader outlines a trading model on the back of a business card, including risk parameters and account size.
7
8 ##04:57 -## Trading plan development and liquidity analysis.
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10 - ICT emphasizes the importance of utilizing a trading plan and finding consistency with a model, rather than seeking approval from others.
11 - The speaker discusses the importance of identifying ideal entry points in the market, using the PDRA matrix to analyze price action and identify potential trading opportunities.
12 - The speaker highlights the benefits of refining the study of price action, using higher timeframes and institutional order flow to identify key levels of support and resistance.
13
14 ##10:17 -## Technical analysis and market structure.
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16 - Analyzing price action, ICT identifies bullish market structure despite trading back down to a discount range.
17 - ICT identifies overbought conditions in a market, indicating a high probability of bearishness.
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19 ##15:17 -## Trading strategies using market structure analysis.
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21 - The speaker discusses a trading strategy that involves identifying high-probability entry points by analyzing market structure and trading in the context of the current dealing range.
22 - The strategy involves identifying breaks and trading in the direction of the break, without waiting for swing highs or lows to form.
23 - ICT delineates price action in a discount, using swing highs for entry.
24 - Unlocking market structure through identifying premium to discount relationships in price swings.
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26 ##22:40 -## Trading strategies using price action and chart analysis.
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28 - ICT defines high and low, targets 62% retracement level for entry.
29 - Analyzes previous daily highs for potential exit points.
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31 ##27:54 -## Scalping in Forex trading with a focus on finding 125-30 pip opportunities.
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33 - Trader identifies potential scalping setup using higher timeframe analysis.
34 - Formulate a method for scalping 125-30 pips every week for 6% monthly return.
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36 ##32:10 -## A simple trading model with low risk and high potential.
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38 - Trader outlines a simple trading model using weekly swing points, with potential for growth and velocity.
39 - Start with a simple model that focuses on previous day's highs and lows for bullish and bearish trades.
40 - Don't feel pressured to move beyond this model, as it can be a successful trading strategy on its own.
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42 ##36:55 -## Identifying high probability trading setups using price action analysis.
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44 - ICT emphasizes the importance of studying past data to build confidence and develop a winning trading method.
45 - Understanding the underlying price structure is key to identifying high-probability scenarios and making effective trades.
46 - Identify low-energy turning points for potential buy signals.
47 - Engineers identify repeatable patterns in price action, despite initial appearances of resistance.
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49 == Transcription ==
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51 (% class="hover min" %)
52 |1 |00:00:31 ~-~-> 00:00:42 |ICT: Okay, folks, welcome back. Alright, so we're gonna be revisiting model number one. And as we go through each year, we will revisit these individual
53 |2 |00:00:42 ~-~-> 00:00:53 |models. And I'll give you a amplification and a further refinement on what you should be applying to the foundational study. So in other words, each price
54 |3 |00:00:53 ~-~-> 00:01:09 |action model has its individual foundational premise. Now, that's not the entire, I guess, nuts and bolts approach to it. It's just the what? What is it
55 |4 |00:01:09 ~-~-> 00:01:23 |that makes you want to engage price with that style or or particular model. Obviously, things can be refined and tweaked and using the material for the
56 |5 |00:01:23 ~-~-> 00:01:33 |mentorship and by way of experience using it. But it's not important initially, once you complete the mentorship core content, to throw everything into your
57 |6 |00:01:33 ~-~-> 00:01:47 |model. As you can see, when I do my analysis, I don't bring in every possible tool. You don't see me doing s&t overlays, you don't do any comparative
58 |7 |00:01:48 ~-~-> 00:02:00 |relationships with intermarket? I'm just taking small pieces, because I don't want to communicate the the assumption that you have to have everything in your
59 |8 |00:02:00 ~-~-> 00:02:17 |model, if you don't, there are tools that are very useful that I refer to when it's applicable. The the necessity for everything being in every model is not
60 |9 |00:02:17 ~-~-> 00:02:26 |the case. And I believe that's the reason why most people have hardships with the content, because they're trying to fit every possible thing that you've
61 |10 |00:02:26 ~-~-> 00:02:39 |learned about into their trading plan. And I had several members in the first group and now the second group of completed charter members. Now, once those
62 |11 |00:02:39 ~-~-> 00:02:55 |individuals that completed 12 months, they have sent me their trading plan. And one gentleman had 115 Page trading plan. Admittedly, as I told him in his email,
63 |12 |00:02:56 ~-~-> 00:03:09 |and this with no disrespect intended, there is no way I could sit down and read that. I mean, I guess I could eventually. But my trading plan literally is on
64 |13 |00:03:09 ~-~-> 00:03:19 |about Belkin back of a business card. And if you remember back on baby pips, I gave you that it was the article, here's my card, and you want to be able to put
65 |14 |00:03:20 ~-~-> 00:03:28 |everything that you do with your model, you need to be able to write it on the back of a business card. Now, obviously, that assumes a great deal of
66 |15 |00:03:28 ~-~-> 00:03:39 |abbreviated understanding. In other words, we don't have to say, every possible tool, what specific things we're looking at, if we just say, I'm looking at hard
67 |16 |00:03:39 ~-~-> 00:03:50 |timeframe, institutional order flow, and I want to trade into inefficiencies and trade out of the position with external range liquidity. And I want to do that
68 |17 |00:03:50 ~-~-> 00:04:01 |one, a scalping basis. And I want to do primarily one Monday, Tuesdays and or Wednesdays, with an occasional Thursday, leaving some portion of the positions
69 |18 |00:04:01 ~-~-> 00:04:12 |on when profitable to capture the larger range. Even though I start to trade as a scalper. I always leave a leader in that way, if there's an expansion that was
70 |19 |00:04:12 ~-~-> 00:04:24 |unexpected, or if I get quote, unquote, Lucky. It helps pay for all of the little dings and mistakes that I will make in my trading. Now I can say all that
71 |20 |00:04:24 ~-~-> 00:04:35 |on the back of a business card. That's a trading model. Now, obviously, risk parameters, how much are you risking? What's your account size? All that's
72 |21 |00:04:35 ~-~-> 00:04:47 |something that you work out on a personal level. But if everyone understood what was taught and mentorship, what I just outlined, is a completing in a sound
73 |22 |00:04:48 ~-~-> 00:05:00 |trading plan or model. Now, obviously, we have to understand what institutional order flow is, as we define it here. And what we're looking for, for external
74 |23 |00:05:00 ~-~-> 00:05:17 |range liquidity for targeting bases. So when we understand that, it makes the overall process a lot easier and more concise, and it doesn't need to be a PhD
75 |24 |00:05:17 ~-~-> 00:05:28 |level outline, in terms of a trading plan, because you really want your trading to be simplified. And I give you the content and understanding, because this is
76 |25 |00:05:28 ~-~-> 00:05:39 |what is necessary by way of utilizing experience, when to refer to certain things when not to worry about them at all. And as you can see, we have survived
77 |26 |00:05:40 ~-~-> 00:05:50 |without co2 Doubt, while the government shutdown. Here we were looking at things in price action that still didn't have any influence whether or not we saw
78 |27 |00:05:50 ~-~-> 00:06:04 |bullish or bearish on its own the commercial positions in our Paris are the underlying futures markets for those pairs. So do you need to worry about
79 |28 |00:06:04 ~-~-> 00:06:18 |whether or not I approve of your model once it's flushed out now. Because you're going to grow comfortable with whatever tools that you work together as a price
80 |29 |00:06:18 ~-~-> 00:06:27 |action model for yourself. Obviously, if it's utilizing my concepts and my teachings, I'm gonna, you know, indirectly approve it, because you're using my
81 |30 |00:06:27 ~-~-> 00:06:39 |content. But you don't need to send me emails with your complete trading plan, because I'm not going to shoot holes. And I'm not going to give you a high five
82 |31 |00:06:39 ~-~-> 00:06:48 |and say, That's the winning one. Because you have to utilize it. And then it will tell you whether or not it's a good plan, it doesn't matter what I say, in
83 |32 |00:06:48 ~-~-> 00:07:00 |an email, or if I say verbally, or in a tweet response AI that it does not matter what ICT or anyone else says, if you find consistency with the model, do
84 |33 |00:07:00 ~-~-> 00:07:11 |not look outwardly for approval, you will find the approval with the utilization of it. And it's sample size and the data that you get from studying and using
85 |34 |00:07:12 ~-~-> 00:07:24 |going forward data not just looking backwards. Okay, so that's the part that's hard. Now, the charter members that arrived here, this is the hard part, you
86 |35 |00:07:24 ~-~-> 00:07:31 |went through the easy part and seemed like a hard, that's a lot of stuff to study, you got to go back and look at it. But it's the hard part, you got to sit
87 |36 |00:07:31 ~-~-> 00:07:43 |down and start fleshing out what you are going to do. Now, we talked about in module one foundational study the utilization of swing points, and waiting for
88 |37 |00:07:43 ~-~-> 00:07:54 |swing highs and swing lows to form and buying when a swing high is broken. And selling short when a swing low is broken. That is the underlying simplest way to
89 |38 |00:07:54 ~-~-> 00:08:07 |keep people that are completely new to trading. On the right side of long term institutional order flow, there's going to be times when that is not going to be
90 |39 |00:08:07 ~-~-> 00:08:21 |as precise. And that's what you saw on free tutorial level and maybe PIP stuff. It's a good training wheel to start people with. And that's how we started the
91 |40 |00:08:21 ~-~-> 00:08:36 |initial model. This, this particular teaching and for our installment for for 2019 is going to refine the study of what we're seeing in price. And it will
92 |41 |00:08:36 ~-~-> 00:08:46 |precede the formation of the swing points. So it's not a matter of waiting around for a swing point to form anymore. Now we understand that the swing point
93 |42 |00:08:46 ~-~-> 00:08:58 |will form at the ideal location, ie, a swing low of the lowest you can buy in a swing low before a rally. That's the ideal entry point. So while I try to teach
94 |43 |00:08:58 ~-~-> 00:09:09 |new students to price action, a comfortable level of looking for the overall draw on liquidity on a higher timeframe and or institutional order flow on that
95 |44 |00:09:09 ~-~-> 00:09:23 |timeframe, ie weekly or daily for scalping, you want to be able to get in there right when it's feeling the most bearish and or most bullish in respect to
96 |45 |00:09:23 ~-~-> 00:09:35 |buying and selling. If we look at the New Zealand dollar, this is a daily chart of this particular pair. And we're looking at the elements of premium to
97 |46 |00:09:35 ~-~-> 00:09:47 |discount. Okay, so you want to be able to utilize the pdra matrix in indifference to where we are relative to a premium or discount. We start our
98 |47 |00:09:47 ~-~-> 00:09:58 |analysis on a daily chart. And we don't require at this point now because you're going through core content. And the first members have gone through the four
99 |48 |00:09:58 ~-~-> 00:10:08 |year of looking at the founding National Study, applying it to their charts. The next level and new charter members have the benefit of not having to go through
100 |49 |00:10:08 ~-~-> 00:10:18 |that first year. So you get a kind of an advantage over the first group here because they had to use a full calendar year before coming to this lesson. So
101 |50 |00:10:19 ~-~-> 00:10:28 |it is what it is. Other ways I could have done it, but without pulling my hair out, I was gonna do it this way and deliver it this way. So when we look at
102 |51 |00:10:28 ~-~-> 00:10:41 |price action, okay, well we're looking for on a higher timeframe is where price is in terms of the premium or discount range or matrix. So when we look at price
103 |52 |00:10:41 ~-~-> 00:10:52 |like this, this huge dynamic up close candle, there was a lot of displacement in here. It caused a buy side imbalance sell side inefficiency. That was
104 |53 |00:10:52 ~-~-> 00:11:07 |essentially cleaned up with this drop down in here. We don't need this to frame it, but it helps. Okay, it helps when this low forms and rallies back through
105 |54 |00:11:07 ~-~-> 00:11:21 |this swing high in here. Once that's broken, market structure is essentially bullish, even though it's traded all the way back down to here. It's bullish.
106 |55 |00:11:21 ~-~-> 00:11:37 |Why? Because we had a larger pdra matrix being the low to high we trade only down to a discount there. Now we rally through broke a swing high institutional
107 |56 |00:11:37 ~-~-> 00:11:51 |order flow bullish until it reached a measure of premium that required a retracement lower a bearish order block we also have a bearish order block in
108 |57 |00:11:51 ~-~-> 00:12:04 |here that was recapitalized written here. Trades softer notes of the retracement and here the original models foundational presentation talked about having the
109 |58 |00:12:04 ~-~-> 00:12:13 |optimal trade entry for the New York open, nothing has changed. We're still utilizing that same model here. But what are we looking at? What are we seeing
110 |59 |00:12:13 ~-~-> 00:12:24 |in here, we're seeing the underlying pattern that sets up key institutional volatility. And I'll show you what that looks like here in a second. Let me pull
111 |60 |00:12:24 ~-~-> 00:12:36 |this up. So when we are in a premium in the market is had has traded up into some measurable a premium array. So when we're looking for in price action,
112 |61 |00:12:37 ~-~-> 00:12:51 |we're not trying to second guess or, or guess rather, where the swing highs and swing lows you're going to form. were anticipating them. Okay, so what we're
113 |62 |00:12:51 ~-~-> 00:13:07 |looking for is an underlying market structure that is highly probable to present large injections of volatility in a directional bias. Okay, so what that looks
114 |63 |00:13:07 ~-~-> 00:13:18 |like is here, we have a premium notice and we're in a market that has traded up. So we are by our definition, overbought, we don't need to indicators to do that
115 |64 |00:13:20 ~-~-> 00:13:35 |bit a relative to the present range that we're dealing in, using basically month five content the way we define our underlying market structure, so we have a
116 |65 |00:13:35 ~-~-> 00:13:47 |high probability scenario for bearishness, we want to see a high that's rated once the highs rated those stocks have been taken. And or they've engineered by
117 |66 |00:13:47 ~-~-> 00:13:58 |liquidity for false breakouts. They are trapped and traders that are trapped up here. Okay, so they have now someone on the other end of their position. So
118 |67 |00:13:58 ~-~-> 00:14:11 |they're counterparty offering by side liquidity that they do that they have to be a seller. So they're offering sell side liquidity as price drops down. If
119 |68 |00:14:11 ~-~-> 00:14:23 |they have a sweet entry place up here, why would they let their book go to a lesser profit or lose that profit. Once we're in a premium, any retracements
120 |69 |00:14:23 ~-~-> 00:14:35 |back up we're going to be shallow. Okay, so we don't necessarily need a run all the way back up to here like we'd see a high to low and then a 62 to 75 cent
121 |70 |00:14:35 ~-~-> 00:14:42 |tracing level optimal trade entry. That's why they never work. Because if it does go up there, this is going to get ran out and this is going to be
122 |71 |00:14:42 ~-~-> 00:14:50 |continuation higher. Okay, so when we're looking at and you'd have to have a loss there because I know some of you are probably thinking okay, well what if
123 |72 |00:14:50 ~-~-> 00:15:01 |we see this pattern here and we get stopped out then you had a trade that got stopped down? You don't learn 100% trading here. You You learn high probability.
124 |73 |00:15:02 ~-~-> 00:15:14 |So the context is, when we're looking for shorts, we want to see the underlying price structure do this, we have a high, run the high write down, a short term
125 |74 |00:15:14 ~-~-> 00:15:25 |was taken out, and then we trade back up into here. Essentially, it's the breaker, the swing points are not necessary. In other words, we don't wait for
126 |75 |00:15:25 ~-~-> 00:15:39 |them. We want to trade at the level 1020 30 pips above the high short, if we can get some overlapping, analysis ideas to support that time of day they have weak.
127 |76 |00:15:41 ~-~-> 00:15:52 |And then in here, we want to be trading as price returns back to the breaker not waiting for the swing high to form. Now, when you do this style of trading,
128 |77 |00:15:52 ~-~-> 00:16:02 |you'll see that you'll get the better entry points. And you can wait for the swing points to form to support the idea. Okay, so there's a difference. Much
129 |78 |00:16:02 ~-~-> 00:16:12 |like when I first learned about the opening price, by way of Larry Williams, he wanted to be a buyer after price rally above the opening price a certain degree,
130 |79 |00:16:13 ~-~-> 00:16:23 |I want to be buying below the opening price, at the opening price or below. Ideally, that's high probability. Well, much like I taught in the foundational
131 |80 |00:16:23 ~-~-> 00:16:35 |premise to model one, we now have the higher form of it, without requiring the swing points. Everything's reversed more below equilibrium with the current
132 |81 |00:16:35 ~-~-> 00:16:46 |dealing range. If we're in a discount, the ideal scenario for buying is we want to see a low that's violated. Okay, once they run those sell side liquidity, the
133 |82 |00:16:46 ~-~-> 00:16:57 |engineer breakout artist and want to sell short on breakout and or sell side liquidity, one assumed long positions in here, they're gonna have a sell stop
134 |83 |00:16:57 ~-~-> 00:17:07 |right here protecting that position. And price goes down in there. They play counterparty big displacement breaks, the highs at market structure announced
135 |84 |00:17:07 ~-~-> 00:17:19 |bullish, returned back to the breaker. This is the highest form of market structure in terms of probability that you're going to find, if you just stick
136 |85 |00:17:19 ~-~-> 00:17:28 |to situations like this, it doesn't mean you're not going to have losing trades, it doesn't mean you're not going to do it wrong. It means that in a 90% bracket,
137 |86 |00:17:29 ~-~-> 00:17:38 |the highest probable points of entry are going to have this market structure here or this market structure here, relative to the current dealing range. Okay,
138 |87 |00:17:38 ~-~-> 00:17:49 |and if you start that dealing range from a higher timeframe, ie the daily chart, because most of the banking, or interbank deals that take place by way of
139 |88 |00:17:49 ~-~-> 00:17:58 |technical analysis, and trading are all formed on a daily relative to open high, low and close. And the last 20 trading days, the last 40 trading days in the
140 |89 |00:17:58 ~-~-> 00:18:11 |last 60 trading days, and that kept a daily range is dynamic, it always moves as we go forward in the calendar. Everything just goes back 2040 60 I do not count
141 |90 |00:18:11 ~-~-> 00:18:25 |Sundays as a reminder. And that's what these Ss are delineating here. So if we're looking at the price action right here, okay, so we had this scenario, we
142 |91 |00:18:25 ~-~-> 00:18:32 |were in a discount, let me show you what it looks like. We have the range. When we're looking at ranges, we have to incorporate the wicks, I don't know, if
143 |92 |00:18:32 ~-~-> 00:18:50 |we're doing optimal trade entries, we only use the bodies of the candles that get the core volume, low to high. Here's 50. So we are in a discount, because
144 |93 |00:18:51 ~-~-> 00:19:02 |liquidity boiled down into a discount price rallies through this swing high is what I would look at, but you can use this one, there's no difference. Okay,
145 |94 |00:19:02 ~-~-> 00:19:11 |inside this area here, whichever swing high, whichever one you choose, that one has to be broken. Once it's broken to the upside, we wait for it to come back in
146 |95 |00:19:12 ~-~-> 00:19:25 |that same area. That's this. Here's the low previous low right there. We have live in run, we drop down, we're in a deep discount relative to the dealing
147 |96 |00:19:25 ~-~-> 00:19:37 |range on a daily from this low to this high. Then price rallies. We can be a buyer down here. There's nothing wrong with doing that. But if you're looking
148 |97 |00:19:37 ~-~-> 00:19:46 |for quote unquote confirmation but not waiting for swing points to form, you wait for this. We want to see the displacement assures energy
149 |98 |00:19:48 ~-~-> 00:19:57 |up here. There may be an instance where it doesn't get back down here and that's okay. Because we're only interested in buying back down here. Why? Because it's
150 |99 |00:19:57 ~-~-> 00:20:06 |bullish or block at that point. It's a bullish breaker At that point, and we also returned back to what level the 50%. So now we're back at equilibrium for
151 |100 |00:20:06 ~-~-> 00:20:18 |discount. So the probabilities increase when we use the PD rate matrix that we learned about in 105. Once we apply that concept, then suddenly all the swing
152 |101 |00:20:18 ~-~-> 00:20:29 |points that form are going to be energetic. Okay, you want to see the swing points, create movement. And that's what unlocks market structure, this over
153 |102 |00:20:29 ~-~-> 00:20:43 |here, relative to premium to discount, and this overall price structure. Now, if you think about what I taught you, I taught you breakers in the free tutorials,
154 |103 |00:20:44 ~-~-> 00:20:53 |I taught you order blocks in the free tutorials, I taught you market structure breaks in the tutorials. In month five, I gave you pdra matrix, in relative
155 |104 |00:20:53 ~-~-> 00:21:04 |terms to the dealing range, premium to discount. When we apply this, everything comes together perfectly, it dovetails beautifully. When you see it in price,
156 |105 |00:21:04 ~-~-> 00:21:15 |everything clicks. It's it's one of those epiphanies that you have or aha moments, more or less robbing you of what you would have seen with this one. But
157 |106 |00:21:15 ~-~-> 00:21:24 |if you go back to your charts, you'll see that there is a plethora of these occurring. Now, this is a daily chart, there's going to be times when we do not
158 |107 |00:21:24 ~-~-> 00:21:36 |have a clear market structure on a daily, we can drop down to a four hour chart, and it may assist because we're scalping, it's still okay. If we don't see
159 |108 |00:21:36 ~-~-> 00:21:44 |anything on a four hour chart, you can drop down into a one hour chart, and nothing less than that. And we can utilize a one hour chart. And if we have
160 |109 |00:21:44 ~-~-> 00:21:56 |these seen conditions here, day a week phenomena overlaps, we get scenarios where we can be a buyer seller for a scalp using what the original premise was
161 |110 |00:21:56 ~-~-> 00:22:08 |for model number five. Now if we take this dealing range away, because you've already outlined really what the point of it all was, we add now the new dealing
162 |111 |00:22:08 ~-~-> 00:22:17 |range in here because inside this parent price swing from this low, the high. Now we had this run here. And we want to see it come back to this price point
163 |112 |00:22:17 ~-~-> 00:22:39 |because it's this pattern here. This low to this high is our new present dealing range low to high. The slider here as you can see it not quite on there yet.
164 |113 |00:22:40 ~-~-> 00:22:57 |There we are. So we have the high in the low defined. Price comes back down into what is this again, equilibrium. So this is a again, high probability scenario.
165 |114 |00:22:57 ~-~-> 00:23:12 |So we've defined the range in terms of pdra matrix we are at an equilibrium discount. This should give us a buy. But now for entry purposes. How do we
166 |115 |00:23:12 ~-~-> 00:23:24 |calibrate the fit for that a mirror the pattern we use for this model is optimal trade entry. We use the bodies of the candle we have the lower of the bodies on
167 |116 |00:23:24 ~-~-> 00:23:35 |this candle with the open so the open on this candle is lower than the close on this down close candle so we start there and we drop this down to the highest
168 |117 |00:23:35 ~-~-> 00:23:40 |close hear him a little harder should be
169 |118 |00:23:49 ~-~-> 00:23:59 |Bingo 62% retracement level. So there's our level we're looking for. Once you have this on your chart, all you're doing is you're gonna wait for a Monday or
170 |119 |00:23:59 ~-~-> 00:24:11 |Tuesday or Wednesday. To trade down into that we've defined it from a month five content basis. We use the up to date ranges. So on this day here, looking back,
171 |120 |00:24:12 ~-~-> 00:24:22 |what's the high in between it's here is your last high. So we're going to target this and we're gonna stay with that bias bullish until this is ran out. Or this
172 |121 |00:24:22 ~-~-> 00:24:32 |highest taken out. Okay. So now we're dropped down into a 15 minute timeframe. Okay, so here's the 15 minute timeframe. Here's Sunday's trading for that
173 |122 |00:24:32 ~-~-> 00:24:41 |particular week, Monday. We don't get down to the optimal trade entry. We're crouching right above that. And then finally on Tuesday, watch what happens
174 |123 |00:24:41 ~-~-> 00:24:55 |Tuesday we dropped down into it here. Bingo. This candle right when it starts to show energy, what time of day is this? New York open. So as price hits this
175 |124 |00:24:55 ~-~-> 00:25:08 |level, you can be a buyer there. Scout but looking for What? Well, you're gonna start looking back inside that pdra matrix and using the data ranges, the last
176 |125 |00:25:08 ~-~-> 00:25:18 |20 days. First objective is going to be what? previous day's high. Remember, that's targeting tool. We look at previous daily high if we're trying to exit on
177 |126 |00:25:18 ~-~-> 00:25:39 |a long read up in here. previous day's high right there. So the highest 6741. So we'll drop a line on that. There, and then we have the previous Friday's high.
178 |127 |00:25:41 ~-~-> 00:25:56 |So we'll put a line on that. And then we have the Wednesday of the previous week's high said market should target that. And we'll stick with that for now.
179 |128 |00:25:56 ~-~-> 00:26:24 |So we have our New York open scalping set up here by price runs up. surges up clears that Monday's high clears the Friday's high retraces runs the Wednesday
180 |129 |00:26:24 ~-~-> 00:26:36 |of the previous week's high here comes back now find some support at the Wednesday high. Look at all the price action around that Wednesday high that we
181 |130 |00:26:36 ~-~-> 00:26:51 |outlined. Go back and watch the recording. And then look at the response again when it takes off. Monday, Tuesday, Wednesday, what day is this? Wednesday, it's
182 |131 |00:26:51 ~-~-> 00:27:08 |classic for buy data form and we're bullish on the 28th of January. Let's go back out to the daily. Okay, that's this the here the 30th. Right there. It
183 |132 |00:27:08 ~-~-> 00:27:23 |found support at this day's high daily highs and lows. Everything that you see that takes place on high energy movement is going to be found on a daily chart.
184 |133 |00:27:24 ~-~-> 00:27:35 |All daily highs or daily lows inside the last 20 days. Look back on this day here. This was the old daily high. This was the old daily high. This was the old
185 |134 |00:27:35 ~-~-> 00:27:54 |daily high, Sunday's not counted Monday, all the way back to this day here on the 15th of January 2019. The high on that candle comes in at 60 847-468-4094.
186 |135 |00:27:54 ~-~-> 00:28:04 |So we cleared the highest well, when that one single candle. Look how much energy was in that one single day. Just the run the data range here, then what
187 |136 |00:28:04 ~-~-> 00:28:18 |does it do? It consolidates and gravitates around that Wednesday Hi. And then another area or run on liquidity. But we went beyond the scope of the 20 day
188 |137 |00:28:18 ~-~-> 00:28:27 |look back. So everything's bullish, though. So what do you do at this point, you could use the last 40 days look back for your analysis. And that takes us back
189 |138 |00:28:27 ~-~-> 00:28:38 |to here. So we have the rejection block here in the form of that Alas, up close candle closing price for the high. And the rejection block is the close
190 |139 |00:28:38 ~-~-> 00:28:56 |6937 969 14. So we cleared the rejection block and then look at their reaction there. Okay, so the way we flesh out, the setups for scalping is not always
191 |140 |00:28:56 ~-~-> 00:29:07 |going to be set up on a five minute basis or a 15 minute basis. The setup can still form from the higher timeframe. But if we don't have it on the higher
192 |141 |00:29:07 ~-~-> 00:29:18 |timeframe, but we dropped down to the lower timeframe to get it if we don't see it on a higher timeframe. The higher timeframe builds the premise or the bias.
193 |142 |00:29:19 ~-~-> 00:29:31 |But we have to include this price structure in here. If we don't have this element behind price action movements, you're actually trading with a
194 |143 |00:29:31 ~-~-> 00:29:44 |disadvantage because we have a built in driver for volatility because when it's in a premium and it runs a high and drops down breaks market structure. They
195 |144 |00:29:44 ~-~-> 00:29:54 |have traders up here trapped they're not going to want to get back or very close to the high. So what's the benefit? They're probably going to move lower. So if
196 |145 |00:29:54 ~-~-> 00:30:03 |they're going to be moving lower, we can be a bear we can sell short in the New York open So when we look for these scenarios, this is just one pair. You want
197 |146 |00:30:03 ~-~-> 00:30:14 |to do this through all the pairs that you look at your basket. Remember, we had a small basket suggested to you and get like one cross and your to that like the
198 |147 |00:30:14 ~-~-> 00:30:28 |beasts like pound yen if you want to do that one or euro yen, or something of that effect, that they could be a catalyst for a scalping scenario. We're not
199 |148 |00:30:28 ~-~-> 00:30:36 |trying again, we're not trying to get a Monday, Tuesday, Wednesday trade when sometimes Thursday up every week, that's not the point here. That's not we're
200 |149 |00:30:36 ~-~-> 00:30:48 |doing. I'm trying to formulate a method for you to use as a foundation to find that 125 to 30 pips scalp every week, because if you just did that, and you made
201 |150 |00:30:48 ~-~-> 00:30:58 |2% return on that trade every single week, you're compounding your money over 100% A year $1,000 is over a million dollars in 10 years. And that's if you just
202 |151 |00:30:58 ~-~-> 00:31:11 |do $1,000, and you never reinvest, if you were to think about it like this and say, this model is sufficient for me to do 6% a month, and I'm going to try to
203 |152 |00:31:11 ~-~-> 00:31:20 |make one and a half percent compounded every week. And I'm going to invest 1000 hours initially, and then I'm going to put 25 hours a week into it. And that's
204 |153 |00:31:20 ~-~-> 00:31:30 |going to be my self directed IRA. Now, the problem is, you will most likely have taxation if you don't have it set up as an IRA, like a self directed IRA, some
205 |154 |00:31:30 ~-~-> 00:31:39 |some IRAs in the states will allow you to trade Forex, I am not going to counsel you to tell you which one that is you have to take the initiative to go and
206 |155 |00:31:39 ~-~-> 00:31:48 |research that yourself. I do not do anything with brokers, I don't do anything with telling people trade with this firm. I don't do that knowing people I tell
207 |156 |00:31:48 ~-~-> 00:32:01 |in a professional capacity for like taxes. Okay, and that screen trader, everyone knows who that is. And that gentleman will help you out with for the
208 |157 |00:32:01 ~-~-> 00:32:09 |states, if you're outside the states, I'm it's who knows, I don't know, there's no way for me to know every possible thing for every country in where you are in
209 |158 |00:32:09 ~-~-> 00:32:20 |your location. But as it relates to using this model, it's very, very simple. It may seem complex the first time you look at it. But you know all these things if
210 |159 |00:32:20 ~-~-> 00:32:29 |you've gone through the mentorship, and we're only looking for one setup per week. So if we go back into that 15 minutes, this setup here alone that one day,
211 |160 |00:32:30 ~-~-> 00:32:40 |that was if you're using as a scalp, there's no problem capturing what you would need for the week. In that range. It's done. And that was the nice energetic
212 |161 |00:32:40 ~-~-> 00:32:44 |move for the week for that particular week. If we go scrolling back, the week prior.
213 |162 |00:32:47 ~-~-> 00:32:55 |There's the Tuesday entry here, but you're buying it down at the low because of the elements that we use on a daily timeframe. And we use all the mentorship
214 |163 |00:32:55 ~-~-> 00:33:08 |perspective, not just a myopic view of swing points. So down in here, everything that would have been utilized for a high probability entry we outlined and look
215 |164 |00:33:08 ~-~-> 00:33:18 |at his energy in it later in the day, it takes off. So again, we have more continuation on the next day. And then we had a little bit more follow through
216 |165 |00:33:18 ~-~-> 00:33:25 |on the following day. We're going to have deep retracement if you're just capturing small portions of price action every single week, and you compound
217 |166 |00:33:25 ~-~-> 00:33:37 |that you have no idea the potential growth and velocity there is behind this. And we're not taking large trades. And we're not taking a lot of trades. We're
218 |167 |00:33:37 ~-~-> 00:33:46 |not trying to day trade every day. We're not trying to scalp every day, we're looking for one specific setup. And this is actually the model I sit down with
219 |168 |00:33:46 ~-~-> 00:33:56 |when people were interested in coming in being with me for a week. This was I sat down down with this and I said look, this is what you do you want to look
220 |169 |00:33:56 ~-~-> 00:34:07 |for this, this and this and this. The problem is, and you're probably having that same itch right now is I want to do more. My question, this is why if
221 |170 |00:34:07 ~-~-> 00:34:18 |you're new, why would you want to do anything more slow your roll learn this do this well, because if you can find one set up per week like this, you don't need
222 |171 |00:34:18 ~-~-> 00:34:30 |to get that 100 Pip move over a one shot one kill or a 50 PIP or the 75 Pip haul you don't need it. You don't need that. There's nothing wrong with aspiring to
223 |172 |00:34:30 ~-~-> 00:34:37 |get to that or you know 500 pips a month for swing trader, there's no there's nothing wrong. I'm not trying to disparage that. I'm trying to just remind you,
224 |173 |00:34:38 ~-~-> 00:34:48 |the low hanging fruit, the easier objectives is where you should be starting in too many of you want to go to one shot one kill, because you hear me say that's
225 |174 |00:34:48 ~-~-> 00:34:58 |what I like to do. And I understand you're learning from me and I'm the educator here. But don't try to mimic me. You'll be a better trader than me sooner. If
226 |175 |00:34:58 ~-~-> 00:35:07 |you listen to all the things I'm telling you to do, because you won't go through all those muddy waters that I had to go through for years. I'm telling you how
227 |176 |00:35:07 ~-~-> 00:35:18 |to skip all of that, and get on a faster learning curve. And you'll be able to do far more than I've done in my years, if you just listen. But you start in a
228 |177 |00:35:18 ~-~-> 00:35:29 |humble beginning, and this is one of them. There, if you ask me, this is a dynamite, hugely efficient model, it doesn't have a lot of moving parts, it's
229 |178 |00:35:29 ~-~-> 00:35:37 |very easy to understand, you work within a defined dealing range. If you're bullish, you're looking at previous day's highs. They're your targets, until you
230 |179 |00:35:37 ~-~-> 00:35:46 |get to the highest one in the last 20 days. If we go outside the last nine days, you refer to your 14 day up to date arrange everything we say here for shorting
231 |180 |00:35:46 ~-~-> 00:35:54 |is reversed. You look for the lows, the previous daily highs, in this case when we're bullish, is reversed. And now we're looking for previous daily lows. And
232 |181 |00:35:54 ~-~-> 00:36:04 |each one of those previous day's low is an objective for price sweeping. When we get to these previous day's highs, we start doing what we look for 1020 and 30
233 |182 |00:36:04 ~-~-> 00:36:24 |Pip grade sweeps. The level here is at three. And we have essentially 20 pips wrong, the high is 603. So two pips variance, who's gonna complain about that?
234 |183 |00:36:25 ~-~-> 00:36:38 |It's easily understood. And for castable, I just created the word for castable. Nonetheless, you don't need anything more than this. And if you never graduate
235 |184 |00:36:38 ~-~-> 00:36:47 |beyond this, you still are a success, you don't need all of the higher level models, you don't need to do model two, you don't need anything, none of those
236 |185 |00:36:47 ~-~-> 00:36:59 |other things. So my point in this is that every one of you should be able to do this model. And if you're now just being exposed to it, you have this full year
237 |186 |00:36:59 ~-~-> 00:37:11 |to start practicing with it and looking for it. In your studies, if you cannot be a part of this, and use use it, go back through your analysis and see if this
238 |187 |00:37:11 ~-~-> 00:37:21 |doesn't form every single week. There's something there every single week, we know that the weekly range is going to be bullish or bearish generally. And even
239 |188 |00:37:21 ~-~-> 00:37:32 |if it closes, mixed near the opening of its Sunday or Monday opening, it's still gonna have an expansion higher or lower. And we look for clues to get that
240 |189 |00:37:32 ~-~-> 00:37:40 |understanding where we can capture some of that weekly range, we don't need the open to the low, and then get all the way up to the high, we don't need that
241 |190 |00:37:40 ~-~-> 00:37:51 |whole entire move. We just need a portion of it. So if we know that we can go back and look at previous price data like this, it helps cultivate confidence.
242 |191 |00:37:51 ~-~-> 00:38:02 |And it helps remind us that hey, look, you know, I have a winning method. I know a winning method. But do you have the discipline to follow it? And then once you
243 |192 |00:38:02 ~-~-> 00:38:11 |capture it, do you have the discipline to stay out? In practice learning your other things in other models, you know, at your leisure, but what you're doing
244 |193 |00:38:11 ~-~-> 00:38:24 |right now? Everything you're doing right now is building your confidence, yes, or your experience. So if you're not engaging price, or acquiring a lot of
245 |194 |00:38:24 ~-~-> 00:38:33 |experience by studying past data with this type of insight, you know what to do now you know exactly how to find setups, there's no reason why you cannot find
246 |195 |00:38:33 ~-~-> 00:38:44 |the setup. daily chart, when you're dealing range. Are we in a premium or discount? You start with the swing points if you don't know, initially, and but
247 |196 |00:38:44 ~-~-> 00:38:56 |you're not going to get the best entries. The ideal entries is what I just showed you here. That underlying price structure is the key that unlocks most of
248 |197 |00:38:56 ~-~-> 00:39:05 |your high probability scenarios. There's other scenarios that don't create that, but they're a little bit more trickier. And you learn them with experience. But
249 |198 |00:39:05 ~-~-> 00:39:13 |the one I showed you here, which is the reason why we talked about breakers and bullish order blocks, all those things become effective. When you look at the
250 |199 |00:39:13 ~-~-> 00:39:24 |underlying narrative of the price action that's being shown. Go back and look at every instance where it is essentially shown. It's staring you right now in a 15
251 |200 |00:39:24 ~-~-> 00:39:37 |minute timeframe. We have a low A high that ran to this high here has been breached here. In the short term has been breached here. We trade back to it.
252 |201 |00:39:37 ~-~-> 00:39:51 |That's a sell. What are we looking for a previous day's low? What's the previous day's low to this high? Right here. This candle is low in your jawbone, and it's
253 |202 |00:39:51 ~-~-> 00:40:09 |right in Chrome 6747 Seven, so we want to say go below 47 It swings all the way down to 45 Bingo. That's the pattern, this is the thing that you're looking for
254 |203 |00:40:09 ~-~-> 00:40:20 |that missing piece. That's it. That's all you're looking for it. Remember, I gave you a clue. In the free to the free lessons on YouTube, I gave a lesson.
255 |204 |00:40:20 ~-~-> 00:40:34 |And I just couldn't remember where it was I put it in one of the commentaries, stating that if you just trade breaker to breaker, you have it. And people show
256 |205 |00:40:34 ~-~-> 00:40:48 |me that that central buying dealers range instead. So, again, it's all going to click if you understand what you're looking for. Okay? Same scenario here. On
257 |206 |00:40:48 ~-~-> 00:41:02 |this particular day, if you use the same phenomenon that's outlined, okay, we have to have a low and price breaks the low, one want to discount, this low is
258 |207 |00:41:02 ~-~-> 00:41:13 |violated, then price runs through clears the high. Once this high is broken, when price trades back down into it. There you go, there's your buy, bang, This
259 |208 |00:41:13 ~-~-> 00:41:27 |folks is your million dollar ticket. If you do not see it, right now, watch the video a few times, then go back and look at every high energy turning point. And
260 |209 |00:41:27 ~-~-> 00:41:37 |you're going to see this because it's the accumulation manipulation, distribution pattern. That's it. You've always heard me use those terms.
261 |210 |00:41:38 ~-~-> 00:41:52 |accumulation, manipulation and distribution. That's it here. We have a low energetic rise, flows through it runs the stops. And engineers have breakout for
262 |211 |00:41:52 ~-~-> 00:42:02 |short selling and neutralizes, sell stocks on Long's price runs back through breaks market structure, traders are gonna see that as resistance are going to
263 |212 |00:42:02 ~-~-> 00:42:12 |try to sell it the whole price or in an air, runaway to them come back. They're gonna say okay, well, we broke this old high here. So now support is broken,
264 |213 |00:42:12 ~-~-> 00:42:25 |it's gonna be bearish and it's not. Okay, this whole movement is exactly what you've been looking for. Everything in this is repeatable. It's something you'll
265 |214 |00:42:25 ~-~-> 00:42:33 |see in every high energy price move. And I don't care if it's crypto, I don't care if it's bonds, I don't care if it's
266 |215 |00:42:36 ~-~-> 00:42:50 |futures, index trading. It's there. It's there. It's there. Okay, so I can't tell you to go back through it. And really listen to the study. Because
267 |216 |00:42:50 ~-~-> 00:43:00 |everything I just taught you here, if you take this and apply it to every other timeframe, it works. You'll be able to swing trade, you'll be able to position
268 |217 |00:43:00 ~-~-> 00:43:12 |trade, short term trade, day trade, or scalp. And even though this model is designed for scalping, I teach you how to leave a leader. In other words, a
269 |218 |00:43:12 ~-~-> 00:43:22 |partial portion of the original position, in case it runs and it gives you the full daily or weekly range. There's nothing better than that feeling. Because
270 |219 |00:43:22 ~-~-> 00:43:31 |many times on that little small piece you'll make more than you made on the larger hole that you've taken partials on, and they will help pay for all the
271 |220 |00:43:31 ~-~-> 00:43:40 |mistakes and smooth out that equity bump that you created with some measure of drawdown. So hopefully you found this insightful and until next year, we'll
272 |221 |00:43:40 ~-~-> 00:43:44 |we'll come back to price action model number one then, and I'll give you more insights.