ICT Charter PAM 10 - Swing Trading

Last modified by Drunk Monkey on 2024-02-09 09:38

Outline

00:00 - A swing trading model using weekly range expansion and external range liquidity pools.

- ICT introduces Price Action Model 10, a swing trading model with potential for 50-75 pips per week.
- Trader identifies weekly range expansion, day of week specific setup, and external range liquidity pools for directional trading.

04:08 - Analyzing audio transcripts and identifying trading opportunities.

- Michael explains the importance of identifying a specific price action model that resonates with the trader's perspective, and using it to build a trading plan.
- Michael provides a weekly chart of the British pound to demonstrate how to analyze price action and identify a premise for trading.
- ICT identifies a turtle soup scenario in the forex market, highlighting the potential for a short covering rally.
- Identify logical levels to collapse partial positions in a trade.

11:54 - Trading strategies using partial profits.

- ICT advises taking two partial profits on a third drive pattern, with the remaining position closed for the day.
- ICT analyzes cable market commentary for bearishness.

15:26 - Trading strategies using price action models.

- ICT uses the double top and double bottom patterns in the price action model to anticipate and run on stops, targeting old highs and lows.
- During a kill zone, ideally on a Monday, Tuesday, or Wednesday, short sellers can sell above an old high or double top, cover below the low, and profit from the continuation down.
- ICT explains how to identify and trade on price reversals using a model with two schools of thought.
- ICT emphasizes the importance of mapping out short-term lows and taking partial profits along the way.
- ICT encourages listeners to use the model to identify potential profit targets and scale out their positions accordingly.

23:04 - A trading model using equal highs and lows.

- ICT identifies simple trading model with equal lows and short term highs.
- Trader discusses versatile trading strategy using highs and lows.

27:07 - Trading using liquidity and range bound markets.

- ICT explains how to identify and trade on short-term lows and highs, using examples from recent price action.
- ICT provides a list of 10 examples for students to find and analyze in their own charts.
- ICT wants students to find 10 examples of buyside using a specific model and store them in their study journal.
- The model uses external range liquidity for entry and exits, and helps traders train their eye and grow their skills.

Transcription

1 00:00:00 --> 00:00:08 ICT: Okay, folks, welcome back. So we're looking at Price Action Model number 10. This is a swing trading model. And we're going to be dealing with setups
2 00:00:08 --> 00:00:23 that we stock for 50 to 75 pips. Now obviously, as I'll discuss when we just go into the details of this model, it's not limited to 50 to 75 pips. And you can
3 00:00:23 --> 00:00:33 use it to make smaller amounts of pips, but you can obviously make it forfeit a larger position model. Okay. So that's why I like to use the swing trading model
4 00:00:33 --> 00:00:44 as the label for this one, because it's not something that you are going to be limited to. And you'll see it's a really simple model. It's easy, I believe, to
5 00:00:44 --> 00:00:56 see in price action, and I think it'll really resonate with a lot of you. If it doesn't don't feel, you know, like, you don't have it together. If you're not up
6 00:00:56 --> 00:01:07 to speed with everything, it just means that this isn't your model. So if you are in that category, the first time you watch it, come back to it in a couple
7 00:01:07 --> 00:01:17 months, you probably warm up to it that way. But I think that the parameters are really simple, it's a really cut and dry approach to looking at price action,
8 00:01:18 --> 00:01:30 you all understand the components, because it's very similar to what we've shown in previous models. And with that, let's get right to it. Alright, so we have
9 00:01:30 --> 00:01:42 the ICT Price Action Model number 10. It's a swing traders model, we're talking 50 to 75 pips per week. The stage for this model is obviously weekly range
10 00:01:42 --> 00:01:50 expansion. So we're always trying to trade in that directional bias. And the setup is going to be day of week specific. And the pattern is going to be
11 00:01:50 --> 00:02:03 external range liquidity runs. Alright, so obviously, with weekly range expansions, we're going to be identifying the likely or most probable direction,
12 00:02:04 --> 00:02:14 the next weekly bar or candle will expand in a directional sense. In other words, if we're looking at a weekly chart, the present or next week's candle,
13 00:02:15 --> 00:02:24 we're trying to derive whether or not the probability suggested is going to go up or down. The day of week, we're going to be expecting an anchor point to form
14 00:02:24 --> 00:02:35 on a Monday, Tuesday or Wednesday, in order to frame a trade setup. And the pattern is going to be external range liquidity, and we're utilizing external
15 00:02:35 --> 00:02:49 range liquidity pools to facilitate an entry in the direction of the weekly expansion and exiting on opposing external range liquidity pools. Alright, so if
16 00:02:49 --> 00:03:06 you look at this chart here. This is an example of external range liquidity pools as entry and external range liquidity pools as an exit. The market has a
17 00:03:06 --> 00:03:23 run above a short term high in an existing bearish scenario. This is the British pound. And I'll counsel you to look at September of 2018, you'll quickly arrive
18 00:03:23 --> 00:03:37 at the weekly bearish order block that it's traded up into here, we had a market structure break, price comes back into optimal trade entry closes in liquidity
19 00:03:37 --> 00:03:51 void in here then starts to run lower after it runs to high here, this is where we're looking to sell. So we're selling external range liquidity, okay, what I
20 00:03:51 --> 00:04:07 mean by that outside of the range of this low to high, this is where the most present viewing range was prior to this movement above. Yes, there's a range
21 00:04:07 --> 00:04:17 here to here. Okay, I'm not, I'm not arguing that. The idea is assume for a moment and I'll let you go to the weekly chart to see this because I can't give
22 00:04:17 --> 00:04:26 you everything in this lessons because you got to go into the price action and see it yourself and draw the annotations. So we're going to pull up a weekly
23 00:04:26 --> 00:04:36 chart of the British pound. And this is a four hour chart. And again, it's not limited to any one specific timeframe. Okay, so have that in your notes for
24 00:04:36 --> 00:04:51 this. The range is this low and this high. We want to see price run above that why? Well it has a liquidity void in here. And prices gotta go trading up into
25 00:04:51 --> 00:05:01 what a premium it has to trade above an old high and it has to trade into a premium. So we're seeing the price action move above the It's hot here. We will
26 00:05:01 --> 00:05:15 be selling short up there. What price level law you can use, and institutional level big figure mid figure, or the nearest round 10 level or five level inside
27 00:05:16 --> 00:05:27 of the fair value gap or liquidity boy. So I want you to determine that on your own. Okay, and it's not something you're going to submit homework, to me saying,
28 00:05:27 --> 00:05:38 Okay, this is what I was suggested. Study inside this little area in here, between this low and this high, this one singular candle right there, in that
29 00:05:38 --> 00:05:49 range, determine where the zero level is, the five levels, if there's an institutional level at all. And as price would shoot above this old high, the
30 00:05:49 --> 00:06:00 framework for this model, okay, remember, when I'm giving you these price action models, they're not trading systems, they're not trading plans. Okay, we lay
31 00:06:00 --> 00:06:11 foundations first, to build a premise around it. And before anyone sound builds a trading plan, they have to have confidence in a specific pattern or an
32 00:06:11 --> 00:06:24 approach to analyze in the marketplace. So that's what these 12 models are their foundations to build on. Okay, and when we go into 2020, we will start fleshing
33 00:06:24 --> 00:06:33 out very detailed, specific trading plans for each one of these models. But you have to have a premise first. Now, you could quickly argue with me, Well,
34 00:06:33 --> 00:06:41 Michael, you should have just told us, this is the premise and have built a trading plan. Now, you have these at your disposal, and then you're supposed to
35 00:06:41 --> 00:06:50 go through price action yourself every single day, every single week. And see if you see these characteristics and price action, the one that resonates with you,
36 00:06:50 --> 00:06:59 the quickest, the fastest, the the easiest for you to see in price, that's the one you're going to work with. Predominantly, it doesn't mean you're going to
37 00:06:59 --> 00:07:10 stay with that one for your career. It's just that's the one that you see easily right now. And you build on it. Okay, so when prices bearish, okay, and I'm
38 00:07:10 --> 00:07:17 assuming we're all going to agree, if you look at the weekly chart, you'll quickly see that this is what that was, was traded until very short block. Price
39 00:07:17 --> 00:07:31 trades down away from that. Now, we have an old low, we know trading below that, that would be an external range liquidity target. So ready below this low, you
40 00:07:31 --> 00:07:44 could be a short covering, didn't take partials, or it could be a full complete exit. If it's not 50 or 75 pips or within that range of 5075 pips, you would
41 00:07:44 --> 00:07:52 hold for lower prices, because again, weekly chart suggesting lower prices, so it's probably not going to stop just here, it's going to want to look for some
42 00:07:52 --> 00:08:05 discount array. So to get to a discount array, what's the parent price swing that it's retracing inside of this high to this low midpoint roughly is here. So
43 00:08:05 --> 00:08:16 it has to go below this price point here to get down to equilibrium and or to a discount. The way this model works is you want to be looking for when you're
44 00:08:16 --> 00:08:25 short, you want to be looking for swing lows to form and then wait for those swing lows like this swing low here formed, we started to rally up a little bit.
45 00:08:26 --> 00:08:38 When price broke down here right below this low, that's where you would take your profits. Because you're trading at a external range liquidity for your
46 00:08:38 --> 00:08:48 outside of the defined range from this low to this high. That was the range, it's retracing here, then it breaks out of it. You want to be always taking
47 00:08:48 --> 00:09:03 profits below one short positions below old lows, because you don't know if that next low that it runs down below doesn't create that scenario there. This low is
48 00:09:03 --> 00:09:14 formed below equilibrium of this parent price swing here to here. So when this low fours and price trades down below that that's a perfect thing to collapse
49 00:09:14 --> 00:09:26 the trade that you shorted from up here. When we look at price action, you want to be looking for turtle soup scenarios and that's really this is its turtle
50 00:09:26 --> 00:09:38 soup. You understand the optimal trade entry you understand fair value gap entries you understand equal highs being blown out as a target. For long
51 00:09:38 --> 00:09:49 positions you understand equal lows being blown out for a short position and targeting that. If we change gears a little bit and start incorporating external
52 00:09:49 --> 00:09:57 rings liquidity you can start learning to trust selling short above old highs and buying below old lows.
53 00:09:59 --> 00:10:10 This gets you in Have habit of looking for entries and exits. And they're opposing in nature. You're looking for external range for turtle soup shorts to
54 00:10:10 --> 00:10:22 go short and turtle soup Long's to cover. So you want to your roles are simply this, you cannot sell short unless you're selling short above a previous short
55 00:10:22 --> 00:10:35 term high. In that short position you cannot cover unless you cover below an old low or a new short term level. As it forms here, price runs away and then trade
56 00:10:35 --> 00:10:47 down below it. Great below here, that's where you would collapse the trade. It's as simple as that. Now partials it's very simple with this. Once you enter on a
57 00:10:47 --> 00:10:59 timeframe you enter on, this is a four hour chart again. Now this is something that a lot of you that are thirsty for these position trade ideas. This is a
58 00:10:59 --> 00:11:08 wonderful opportunity for it because it gives you logical levels to collapse your partial position. Once we trade below this low here, take a partial off
59 00:11:08 --> 00:11:17 price trades down lower creates a short term low it spikes up meaning you got nervous this day, maybe you didn't you know right below this low, you're going
60 00:11:17 --> 00:11:26 to take another portion off, it trades below it here, he take a portion of it off, price comes down creates another short term low it rallies up, you know if
61 00:11:26 --> 00:11:37 it trades below this low here, we're in a discount. And that's the area take profit, take your final portion off there. You don't suffer anything on this.
62 00:11:38 --> 00:11:51 Okay. If you were so inclined to take a long in here and using this turtle soup as an entry going long, he would be buying below the old low and you cannot sell
63 00:11:51 --> 00:12:02 the completeness of the position. You can't collapse the entire position or whatever we remaining after partials unless you sell it above an old high. So as
64 00:12:02 --> 00:12:10 price creates the short term high here, you can take partials outright their price runs up creates a short term high when price runs above it on this candle.
65 00:12:10 --> 00:12:20 You take a partial here, look over here you have this old high here. If price trades above that high here, you collapse it now you can hold for this movement
66 00:12:20 --> 00:12:32 here or trade your stop loss up. And it has to be if you take two partials, you have to be really, really tight on your trail position for child stop loss
67 00:12:32 --> 00:12:43 rather, you do not want to be ultra short term in like five pips stop losses or 10 pips stop losses. Don't even think like that. But once you take two partials,
68 00:12:43 --> 00:12:54 you want to really be protecting the open position at that point because after two partials generally, that's a distinct like three drives pattern, where it
69 00:12:54 --> 00:13:02 creates a high, a higher high, and a higher high. And then rejection occurs. And it has like typically, intermediate term high forms. Well, you can see that
70 00:13:02 --> 00:13:11 almost forming here you have a short term high, a short term high, and then a short term high, it runs through that, and it creates little tiny ones in here.
71 00:13:11 --> 00:13:20 But until it presses above this high, all these are insignificant in my mind. But once we get above this high, this short term high than the short term high
72 00:13:20 --> 00:13:28 and this little spike here, all of this I would have not been in I would have been just out right above this high here on this candle and been done with it.
73 00:13:29 --> 00:13:42 So in your roles, you want to say that two partials on the third, take profit all your position comes off. It's as simple as that. If you don't like that
74 00:13:42 --> 00:13:52 rule, you can change it where you take one partial and your second exit is the remaining portion. You can do that as well. If you look at the the amount of
75 00:13:52 --> 00:14:02 pips here, it's not 50 to 75. I elected to use the four hour chart just to remind the folks that we're not day trading all the time, and we're not using
76 00:14:02 --> 00:14:10 the information just to date trader scout. This works on all timeframes. So since I've included the four hour let's go over to Mt four and we'll work with a
77 00:14:10 --> 00:14:20 15 minute timeframe using cable and you can see how it works inside of the weekly range and on an intraday basis. Okay, so without going into all the
78 00:14:23 --> 00:14:38 running off at the mouth about why cable was bearish. Just look at the market amount market commentary for the week of February 15 to Friday. So, the analysis
79 00:14:38 --> 00:14:51 that was shared prior to that. We obviously mapped this out for bearishness. So, if you're looking at this later on, and you've finally got to this lesson, we're
80 00:14:51 --> 00:15:02 not cherry picking, just go back and look at February 15. That Friday, look at the market analysis for that week. The month Then on Wednesday, analysis for
81 00:15:02 --> 00:15:18 2009, teens, February 15, weekending commentary for cable. Okay, so I just want to preface it with all that. So from a visual standpoint, over here, this is
82 00:15:18 --> 00:15:29 what you're looking at, you want to see an area where there is a hot, single, high or double high? No, no, no, it's like a double top. Either one of these
83 00:15:29 --> 00:15:40 scenarios will work when you're bearish when price runs above that, and it's during a kill zone. And it's time of day where it would support it. In other
84 00:15:40 --> 00:15:53 words, it's, we're in a bearish market environment. It's an open or it's New York open. And it's day of the week that will promote a continuation down and
85 00:15:53 --> 00:16:03 what's ideally a Monday, Tuesday or Wednesday, when it's a weekly bearish scenario, that's ideal, and then trading down into an old low or could be a
86 00:16:03 --> 00:16:15 double bottom, think of the Eurodollar. Now just toss this in here just for completeness, like this. Okay, I admittedly, I just won't include this, I was
87 00:16:15 --> 00:16:26 trying to use this very pattern, and model to do Eurodollar. Because I anticipated doing when the release model number 10. But again, my wife needs us
88 00:16:26 --> 00:16:39 to do things Monday. So I'm doing Model number 10, release Saturday, February 16 2019. I wanted to sell short above here, and then cover below this low here.
89 00:16:39 --> 00:16:48 But it created a double bottom, which is even better. And you saw me actually engage selling short here using this runnable. This Oh, hi, I sold short here.
90 00:16:48 --> 00:16:59 And I targeted these loads. So I absolutely used Model number 10. This week and year ago, and you saw that on Twitter. So going back over to our cable example,
91 00:17:00 --> 00:17:10 just know that the double top and double bottom are included only in the visual representation of what you're doing with the price action model. But it doesn't
92 00:17:10 --> 00:17:20 have to require or it doesn't rather require double tops or double bottoms, it can be a single high and single low that everyone stops on the premises the
93 00:17:20 --> 00:17:31 bias. So we're anticipating and run on stops. And we're practicing and studying when price does that very thing. So you wouldn't be as a short seller above when
94 00:17:31 --> 00:17:42 bearish above an old high or double top selling short there and then waiting for a low to be violated. And then covering there. Okay, ideally you want to do it
95 00:17:42 --> 00:17:52 and again, during a he kills him, which would be ideal for if you're day trading, running close. And or if you're one shot one kill trading, you want to
96 00:17:52 --> 00:18:02 be doing as a cover generally on Thursdays in New York open because that typically will make the low of the week when we're bearish and bullish links, it
97 00:18:02 --> 00:18:12 will be reversed on this diagram. Okay, so everything would be reversed. And I'm going to include that here and want you to draw this out in reverse, so you're
98 00:18:12 --> 00:18:26 going to have a low and a lower low, and then the price run up creating high, another high, and then it runs above it. So everything here just reversed or
99 00:18:26 --> 00:18:38 upside down. Okay. And you'll have for being a buyer, some only giving you the sell side here because we have examples of us in the cable price action this
100 00:18:38 --> 00:18:53 week. And I want you to study this week, because I'll give you something for the buy side using this model next Saturday. So comic even down the model. So we
101 00:18:53 --> 00:19:06 have two schools of thought here. If you're a 50 Pip, target trader, or 25 Pip, target trader, what we're looking for 30 dividers in here Sunday, the opening
102 00:19:06 --> 00:19:16 price, which we're not going to include all the lipstick on this. But once the price trade above the opening price, here's Wednesday it does that. It does so
103 00:19:16 --> 00:19:26 in the form of running above an old high in an environment where we're already bearish expecting lower prices. The ideal scenario is we want to sell when
104 00:19:26 --> 00:19:39 prices run in the opposite direction of our bearish stance running above an Ohio ideal scenario, so we can see and you really want to practice this on paper for
105 00:19:39 --> 00:19:54 a while because it's a little scary at first. But over time, you'll build your confidence up and you'll see that these movements are pretty, pretty responsive
106 00:19:56 --> 00:20:07 10 pips above 1520 30 pips above you You're looking for those opportunities, but we're running above and equal high back here. So look at it like this run above,
107 00:20:07 --> 00:20:18 you must sell short, their price breaks down. Once price takes out this short term low here, you can take a partial bear market trades down crazy short term
108 00:20:18 --> 00:20:25 loan here such a run up, if price takes out this low, we can take another partial, or it could be your first partial, because you had been anticipating
109 00:20:25 --> 00:20:34 this low being your second. But because we create this short term low, so close, we can look for a little bit lower objective. And remember, we had our weekly
110 00:20:34 --> 00:20:46 liquidity pool down around that 120 bit figure for the week of May 15 2019. And again, watch the videos for that particular week in your archive. And you'll see
111 00:20:46 --> 00:20:57 we had all that mapped out before him. So every time we create a new low, it trades below it, you're taking potentially a partial off. Now remember to
112 00:20:57 --> 00:21:06 remember the rules of this game a couple minutes ago. On your second partial, the next time you take profit, you have to be out of the entire position. So it
113 00:21:06 --> 00:21:15 gives you an opportunity to map out every time we create another short term low ahead of our ultimate objective once only big figure or lower potentially
114 00:21:15 --> 00:21:25 because every time we trade to a big figure, and we're trading down to it, you can trade 1020 or 30 pips below the figure. Okay, so that means the 90 level on
115 00:21:25 --> 00:21:36 the 80 level and the 70 level below that figure our potential candidates how far it can reach down. I very rarely hold on to anything beyond 20 pips for the big
116 00:21:36 --> 00:21:49 figure. It's just me, I like to do that. And you maybe you'll do better than me. But and here, beautiful example, using the model. But we have to get out below
117 00:21:49 --> 00:21:59 and although to cover it by doing this, even if you go back and you mark up your charts, say you don't trade with this model, you should look for these in your
118 00:21:59 --> 00:22:09 price action study every single day, draw them out on your chart. By doing it you're building experience internally, in your activating your reticular
119 00:22:09 --> 00:22:18 activating system, where it allows you when you look at price action, you'll remember Hey, I remember seeing that because I did it 20,000 times, you'll see
120 00:22:18 --> 00:22:25 it live as it forms. And you'll start seeing okay, we're below that low. I'm going to pay per trade the idea that I'm going to be buying here or selling
121 00:22:25 --> 00:22:34 here, and I'm going to wait for these short term lows to form every time it does, and it trades below it, I will take a portion off. Now I'm going to leave
122 00:22:34 --> 00:22:48 it up to you what the percentages of the scaling you use, because I don't want to have everything outlined in my personal opinion. partials are completely
123 00:22:48 --> 00:22:59 personal. Now you could take 50% off on your first one, then 25 and balance out the last 25% your original position on final collapse, you only take three
124 00:22:59 --> 00:23:09 profits. Okay, the third one, the trains collapse, or you're stopped. It's simple as that. Okay, so it's not a very complicated model. It's rather
125 00:23:09 --> 00:23:23 simplistic. It's, it's, it's easy, it really is easy. So I'm going to pull up a Canadian dollar. And I don't know, right away what it's going to show. But we'll
126 00:23:23 --> 00:23:35 just see if we have some examples here. Alright, so we have equal lows here. Price trades down below those, we can be a buyer, and you cannot sell unless we
127 00:23:35 --> 00:23:43 take out a short term high is too close, we wouldn't want to do anything with that we want to see it try to get back above the point that defines the setup,
128 00:23:43 --> 00:23:53 which is these lows here, which are down below it. So when we trade above here, if we get above this high, which it does here, first partial price trades down,
129 00:23:54 --> 00:24:04 rallies up, it creates a short term high right here. So if price trades above that, we can take a partial price reach down here injuries right back up here,
130 00:24:04 --> 00:24:12 you take a little partial or unless it's too close for you, you want to see it run back up into this area here. You can see it do it on this short term high
131 00:24:12 --> 00:24:19 run above it and you're just sort of partial and you're out. And that's really a nice nice run because it takes us right back to the bottom of this consolidation
132 00:24:19 --> 00:24:31 which could end the run here it could have very easily stopped there and traded down deeper. Right away. You can see how this pattern or model gives you
133 00:24:31 --> 00:24:43 structure gives you framework and it's very easy role based idea. Here's an example. We have price trading above these equal highs right here and be a
134 00:24:43 --> 00:24:53 seller selling waiting for it to trade below break below this low here first partial price trades short term low here trades down below it and also we can
135 00:24:53 --> 00:25:03 see this low here. double bottom, just below that to get partial crazy short term Well here trades down below again, maybe it's so close. We don't really
136 00:25:03 --> 00:25:13 want to take any more that question we'll see if we can get a run into a deeper any short term lead it creates here. We can take our covered right there on the
137 00:25:13 --> 00:25:29 third position and collapse. The pattern is very, very versatile. It's so generic, it can be used on any timeframe. Absolutely. anytime during the day
138 00:25:29 --> 00:25:42 trading model. You saw it right here. As a one shot, one kill, to go back to go back to cable. If we want to be a seller up here, and 50 pips is your model
139 00:25:42 --> 00:25:56 target and you sell above. If you selling above this high here, we'll say you're selling it. A few pips above the equal highs over here. We're selling it right
140 00:25:57 --> 00:26:07 in here, so we're not getting the actual high. I can make this look cherry picked and it's the best entry point. We're not trying to do that. Entering
141 00:26:07 --> 00:26:21 here, even before we get below the low that would create the breaker. We're already at 50 pips. If we use 75 pips as our model using roughly the same entry
142 00:26:21 --> 00:26:30 right in here. We get below that low and we don't even have to worry about all this extra move. We got 75 pips banked just like that. That's one shot, one
143 00:26:30 --> 00:26:42 kill, you're done. It's over. Now, obviously, you could structure so your first profit is, if your model is 50 pips really, you take half off at 25 pips. And
144 00:26:42 --> 00:26:55 then you scale at 75 pips and leave a portion on case you get a runner. Or you can do a small exit at 25 pips, like say 25% of your position, at least 75% on.
145 00:26:55 --> 00:27:05 And then when you get 50 pips take another quarter off, the last portion is full profit for the remaining half of the original position. That's one scenario, we
146 00:27:05 --> 00:27:19 can do that as well. But the model itself is very, very elementary, it's simple, because you're running old highs selling short there. And you're waiting for
147 00:27:19 --> 00:27:32 price to trade down into a new short term low or an old low to the left. Old lows to the left take precedence over new short term low liquidity. For
148 00:27:32 --> 00:27:45 instance, like we created the short term low here, trading below that it's not as ideal because you haven't Oh, back here, the liquidity is resting below here,
149 00:27:45 --> 00:27:52 it says a big pocket of liquidity. Why? Because we have movement away from it, it hasn't been back to this price point in a while. So this short term low here
150 00:27:52 --> 00:28:01 after seeing a run above this and coming back down. US you want to try to hold something on to get below that low and we get it here. Well how much energy it
151 00:28:01 --> 00:28:11 takes, it takes the trade down into that hits it here, small little retracement sells off again, optimal trade entry. So the whole more time in hits the
152 00:28:11 --> 00:28:23 objective, pretty much almost do PIP that we were looking for this particular week. And then we have a run higher. We can see the same thing occurring here.
153 00:28:23 --> 00:28:34 After we create our low the weak scenario. TGIF conditions, we have equal lows, price trades down below it, we can be a buyer there. Price runs up great short
154 00:28:34 --> 00:28:44 term high retraces runs through it take profits there. net short term highs here, you can take a partial out there. And the other high is here. If it trades
155 00:28:44 --> 00:28:55 out there, we're collapsing the positions over. I promise you if you don't see it, watching it with me right now. Go through your charts. Watch the video a
156 00:28:55 --> 00:29:06 couple times, I'm going to end it here. I don't want to add any more rules to it because it's not necessary. How much you take off at your partials is completely
157 00:29:06 --> 00:29:16 up to you. You flesh that out yourself. I gave you several suggestions in this teaching where it can be done and how to structure the buys and the sells like
158 00:29:16 --> 00:29:25 you move signs of it. Now, next Saturday, I'll give you a sell side which has the complete diagram. And we're here to help you see it visually. The right now,
159 00:29:25 --> 00:29:34 I want you to study this, we go through your charts and find 10 examples. I don't want you to send it to me in my email. I get 1000s of emails every week.
160 00:29:34 --> 00:29:44 And it's very hard for me to keep up with them. But I want you to find 10 examples and store them in your study journal. And we'll come back to them next
161 00:29:44 --> 00:29:44 Saturday.
162 00:29:47 --> 00:29:56 And we'll do 10 examples of buyside using this model for next week's homework. But if you're, you know excited you want to look for five I'm sorry if you want
163 00:29:56 --> 00:30:08 to find 10 by examples in it Listen to your 10 cell examples using this model, spread it out also don't just do Forex, look at a few stocks. look at
164 00:30:08 --> 00:30:18 commodities. Okay, and you'll see that this model is everywhere. And it will help you train your eye using external range liquidity for entry and exits. And
165 00:30:18 --> 00:30:27 it gives you a wonderful framework for trading outside the Core Liquidity. That scene with a range bound market like this would be a range high. And this would
166 00:30:27 --> 00:30:37 be a range of low trading outside of the range and outside of the range and using those as your entry and exit point. That's the apex of predatorial trading
167 00:30:37 --> 00:30:47 as far as I'm concerned, you can see outside of the candles, the narrative where the liquidity is open, float above and open float below the current market
168 00:30:47 --> 00:31:00 price. Even if you don't trade this model steady every single day, looking for this example, map it out. I promise you if you do this every single day, you
169 00:31:00 --> 00:31:09 will very likely grow into this being a model you like to use, okay, or at least frame out your setups is certainly gonna help with you taking profits because
170 00:31:09 --> 00:31:19 it's very clear cut strategy, you know what you're doing, you're exiting short positions below newly created short term lows, and or although it's very, very
171 00:31:19 --> 00:31:31 simple, you're long, you're selling out of the long position above newly short term created highs or old highs you have to exit above a new short term high or
172 00:31:31 --> 00:31:43 old high when your long well you have to exit one short covering for short position below a newly short term created low or an older and you're basically
173 00:31:44 --> 00:31:53 you're getting in in buy stocks and you're getting out on sell stops or you're eating itself stuff and getting out of buy stuff. You're using Counterparty
174 00:31:53 --> 00:31:59 liquidity theory for your entire model. So if you found this insightful until next time, wish you good luck and good trading