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Last modified by Drunk Monkey on 2024-01-05 06:25
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1 == Outline ==
2
3 ##00:11 -## Short-term trading model using weekly range expansions.
4
5 - ICT explains short-term price action model using weekly range expansions.
6 - ICT explains the context of their model, focusing on fair value gaps, old highs/lows, and liquidity pools for bullish/bearish predictions.
7
8 ##04:13 -## Using a price action model for short-term trading.
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10 - ICT uses a weekly chart of the dollar CAD to demonstrate a bullish setup, highlighting equal highs and an old down close with a fair value gap.
11 - Price trades up into the fair value gap, filling it and reaching a new high, with the opening price of the price action model indicating a bullish start.
12 - ICT uses Tuesday's opening price as a filter for short-term trading, buying below that price level with a 50 pip stop loss.
13 - The strategy involves looking for a short-term swing low and placing a limit order at that price or slightly higher with a protective stop loss until Thursday's New York open.
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15 ##10:01 -## Short-term trading strategy using weekly candles.
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17 - ICT is looking for a buying opportunity on Tuesday or Wednesday, based on the weekly chart's pattern.
18 - They will use a 50 pip protective stop loss and wait for the New York open or stop out.
19 - Trader seeks to capture weekly range expansion using daily and one-hour charts.
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21 ##15:15 -## Technical analysis and market trends.
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23 - ICT expects reversals in momentum based on resistance or support levels.
24 - Analyst predicts foreign currencies will rise due to seasonal trends and weak dollar.
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26 ##19:10 -## Trading strategies using time frames and market structure.
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28 - The speaker discusses using Tuesday as an entry point for shorting oil, looking for a specific filter in the price action to confirm the trade.
29 - The speaker emphasizes the importance of identifying a reversal market profile to avoid getting burned by an existing trend.
30 - ICT ignores daylight savings time and sticks to a standard 400 opening price in Eastern Standard Time.
31 - ICT looks for shorting opportunities when price trades up into a target level, abandoning the buy under 400 opening price and selling short above the 600 European Open.
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33 ##24:33 -## Using price levels and market profile for trading.
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35 - ICT uses a combination of seasonal tendencies, market structure shifts, and Brexit news to anticipate potential reversals in the market.
36 - Once an objective is met using model number two, the strategy does not abandon model number two but instead uses it with a reversal market profile.
37 - ICT analyzes the dollar CAD pair and identifies a key level at 134 65, based on a five or zero level below the low of the previous candle.
38 - ICT uses institutional pricing models to calibrate the key level and rounds down to the nearest five or zero level.
39 - ICT emphasizes the importance of foundational studies and core content in trading, as entry points without proper knowledge can lead to risk.
40 - ICT demonstrates how to map out potential reversal patterns and liquidity pools in a price chart.
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42 ##33:47 -## Technical analysis and trading strategies.
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44 - ICT identifies a balanced price range on the daily chart, with a potential target at the low end of the range.
45 - On the hourly chart, ICT looks for liquidity pools at 130-40 and 30-75, with a potential stop level at 132-50.
46 - ICT identifies key levels and uses reversal pattern entries for trading.
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48 ##39:24 -## Using Asian range theory for shorting opportunities.
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50 - ICT analyzes price action on Monday, Tuesday, and Wednesday, using institutional perspective to identify potential trading opportunities.
51 - ICT explains how to use sell stops for shorting when the market is bearish, using the Asian range theory to define the entry point.
52 - ICT advises on managing leverage by dropping down to smaller lot sizes if the swing projection exceeds reasonable risk management levels.
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54 ##44:36 -## Trading strategies using market profiles.
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56 - The speaker discusses a "lazy man's entry approach" for trading, which involves confirming market bias and using a smoothed moving average to determine entry points.
57 - The speaker emphasizes the importance of sticking to the model and not caring about external factors, such as other people's opinions or analysis.
58 - ICT explains the importance of waiting for the opening price to confirm a reversal in the market.
59 - Using the Asian range as a filter, sell short above the opening price if it breaks below the range after 600 European Open.
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61 ##49:37 -## Using European open for trading.
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63 - Trader uses European open rate to refine Judo swings during daylight savings time transition.
64 - ICT explains the concept of "flout" in trading, using a range of values as an example.
65 - ICT shows how to use 50% of the range to create a projection point, which can be used for trading decisions.
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67 ##54:26 -## Technical analysis and trading strategies.
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69 - ICT analyzes the daily low and mid levels to identify potential trading opportunities.
70 - He uses fibonacci retracement levels to determine the exact price point for potential trades.
71 - The speaker discusses the importance of identifying the 50% level in price action and how it can be used to anticipate potential trade entries.
72 - The speaker highlights the significance of the equal lows in the liquidity pool and how it can be used to inform sell short entries.
73 - ICT provides 10 tips for trading, including using standard deviation to predict price movements and identifying elements that support the trade.
74 - ICT will be back in 2020 with additional insights for model number three, focusing on amplification.
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76 == Transcription ==
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78 (% class="hover min" %)
79 |1 |00:00:11 ~-~-> 00:00:21 |ICT: Okay, folks, welcome back. So this is the price action model number two, this is going to be specifically dealing with short term trading. Now the model
80 |2 |00:00:21 ~-~-> 00:00:38 |I'm building it on is weekly range expansions. Okay, for short term weekly range, price action model number two, this is gonna be more or less how we break
81 |3 |00:00:38 ~-~-> 00:00:53 |down the overall price action models. The point of these are not so much to overcomplicate it, and to reteach the mentorship, but kind of like pool. certain
82 |4 |00:00:53 ~-~-> 00:01:07 |segments have the content in logical locations for the premise behind each component here, as you can see, I've given us a model of a stage, a setup and a
83 |5 |00:01:07 ~-~-> 00:01:18 |pattern. And specifically, on a larger perspective, the stage is going to be our weekly direction, that means we have to have a directional bias for the weekly
84 |6 |00:01:18 ~-~-> 00:01:33 |candle. Okay, and the setup is going to be our range expansion. And our pattern is going to be it's gonna be based on the PD array matrix and looking for
85 |7 |00:01:33 ~-~-> 00:01:34 |opposing PD arrays.
86 |8 |00:01:41 ~-~-> 00:01:55 |Okay, so when we're looking at the concept of range expansion, and these candles are crude depictions of a weekly candle. And on the left hand side, we're seeing
87 |9 |00:01:55 ~-~-> 00:02:11 |a crude depiction of a weekly up close. And the open is going to be specifically referred to in this model. And you can see here for the bullish weeks, what
88 |10 |00:02:11 ~-~-> 00:02:22 |we're going to use as a context for the draw, or why we believe that the weekly candle should go up is it's going to be targeting a buy stop liquidity pool, or
89 |11 |00:02:22 ~-~-> 00:02:35 |an old high or a fair value gap above where the market opens for the week. Conversely, when we're bearish, we're going to be using just three easy erase.
90 |12 |00:02:36 ~-~-> 00:02:51 |Again, the fair value gap, old low Sell Stop liquidity pool. Really simple. Okay, so what do I mean by this? What what's the context of what I'm showing you
91 |13 |00:02:51 ~-~-> 00:03:03 |here? Obviously, we went through a lot for for the mentorship. And I'm limiting our focus to this model to only looking for fair value gaps, old highs and lows
92 |14 |00:03:03 ~-~-> 00:03:16 |and the liquidity pools resting beyond the old high or low. So our understanding is, we want to see when the market is relatively bullish, we'll be opting to use
93 |15 |00:03:16 ~-~-> 00:03:27 |the model for art stage, if you will, on the left hand side here, with the bullish up close expected more bearish room using the model shown to the right,
94 |16 |00:03:28 ~-~-> 00:03:40 |when we're expecting a down close for the week, it can be one of the three PD arrays fair value gap, where it's an area where price needs to be rebalanced on
95 |17 |00:03:40 ~-~-> 00:03:53 |a weekly chart an old high or low where it may retest or reach up into a or block or below into a bearish order block. Now the order block itself is not
96 |18 |00:03:53 ~-~-> 00:04:02 |being delineated here or mentioned as to PD array, but you can substitute the old low with for block and then obviously the liquidity pool that would be
97 |19 |00:04:02 ~-~-> 00:04:06 |resting just beyond a short term, old higher low.
98 |20 |00:04:13 ~-~-> 00:04:21 |Alright, so we're gonna be looking at a bullish example here. And you can see here on the right hand side, this is a weekly chart to see you know, it's the
99 |21 |00:04:21 ~-~-> 00:04:30 |weekly chart of the dollar CAD. And I'm using this example because it's something I've traded you guys seen examples of it seen executions as well. So
100 |22 |00:04:30 ~-~-> 00:04:44 |everything here is based on something I actually did. So right away, we can see that there's equal highs in the dollar CAD pair and then right above it, we have
101 |23 |00:04:44 ~-~-> 00:05:02 |an old down close, maybe for the move up. So only by say delivery is offered at that blue line. So there's an old reference point for institutional order flow
102 |24 |00:05:03 ~-~-> 00:05:18 |and a fair value gap that resides and is seen here. Face to only sell side deliveries and offer from this point one down. Using this area here, the open on
103 |25 |00:05:18 ~-~-> 00:05:28 |this candle trading higher. So I'm framing the fact that we only went down here, this candle went up to this price point, lift this inefficiency here. So our
104 |26 |00:05:28 ~-~-> 00:05:41 |fair value gap is the draw. That's what's causing our bullishness or view for the dollar CAD in this example why we expect it to go higher. And also, we have
105 |27 |00:05:41 ~-~-> 00:05:57 |a liquidity pool here as well, with an old, high. Okay, so we have old high quality for fair value. Okay, so let's take a look at what transpired as a
106 |28 |00:05:57 ~-~-> 00:06:14 |result. Okay, price trades up into and fills the fair value gap. Right there. Okay. And again, this is the, the setup, we're looking for the weekly candle to
107 |29 |00:06:14 ~-~-> 00:06:23 |do this very thing here. Now, you can see price does, in fact, open on this week here. And again, these are weekly candles to open, it trades down a little bit
108 |30 |00:06:23 ~-~-> 00:06:33 |and goes higher, it opens trades down a little bit and goes higher this week here, it opens, does move a little bit, but eventually you would have been
109 |31 |00:06:33 ~-~-> 00:06:43 |stopped out on this particular week. And then we had the really big bullish candle that takes us right up into a rebalancing of the fair value gap right
110 |32 |00:06:43 ~-~-> 00:06:45 |here. Okay.
111 |33 |00:06:50 ~-~-> 00:06:59 |Okay, so let's take a look at what is the opening price for our price action model for this. Now, obviously, we can use the Sunday's opening price, or we can
112 |34 |00:06:59 ~-~-> 00:07:14 |use Monday's opening price. Okay, at midnight, New York time, or we can use in this model, we're going to be using the opening price on Tuesday. Now, why am I
113 |35 |00:07:14 ~-~-> 00:07:24 |going to be using Tuesday is because Tuesday typically will create the higher low of the week. But we do not require having that level of precision, if we're
114 |36 |00:07:24 ~-~-> 00:07:33 |gonna be short term trading, because the the logic I want to build in this model is you don't want to be sitting in front of the charts all the time. But you do
115 |37 |00:07:33 ~-~-> 00:07:45 |want to capitalize with some measure of intraday price action. And the way we're going to be using that is we're going to use the opening price on Tuesday at
116 |38 |00:07:45 ~-~-> 00:07:57 |400. And we're gonna use that time. So that way we don't ever have to worry about going back and forth with daylight savings time. Okay, so if you use that
117 |39 |00:07:57 ~-~-> 00:08:08 |hour, you don't have to talk about anything is keep it like that all year round. Just leave it, okay. And the idea is that opening price, which has been
118 |40 |00:08:08 ~-~-> 00:08:20 |delineated here on this particular week, this is Tuesday's trading. That opening price when we're bullish, we wouldn't be buying at that price or below it. Now,
119 |41 |00:08:20 ~-~-> 00:08:31 |if you're going to be rather lazy and not be up during the London session for entry, what we'll be doing is we'll be buying at that price. And then using a 50
120 |42 |00:08:31 ~-~-> 00:08:44 |pip stop. Really simple. So all you have to do is find out what time it is in that 400 hour. And if it happens to be online with 12 o'clock midnight in New
121 |43 |00:08:44 ~-~-> 00:08:52 |York time, or if it's a little bit earlier, whatever. As long as short is you don't have to worry about that measure of precision, because we're short term
122 |44 |00:08:52 ~-~-> 00:09:02 |trading. And we're using a filter. Okay, so when we're bullish, we're gonna be buying below this price level. Ideally, we want to see what would be residing
123 |45 |00:09:02 ~-~-> 00:09:12 |below this level in a form of a discount array. We could look for short term swing low as we see here. Short term low swing low here, price does in fact, go
124 |46 |00:09:12 ~-~-> 00:09:25 |below that. So you could put a limit order at that low or that low plus three pips, or five pips rather. And then at that price point, then use a 50 pip stop
125 |47 |00:09:25 ~-~-> 00:09:39 |below it, okay as your protective stop loss. And we'll be looking for an expansion on a weak and because we don't know always if it's going to be a tiger
126 |48 |00:09:39 ~-~-> 00:09:49 |by the tail that we've caught. We want to have some factor of time involved. So while I'm giving you the price element here, and certain measure of time because
127 |49 |00:09:49 ~-~-> 00:10:02 |it's a Tuesday, we want to be holding on to the moves until Thursday, New York open. Okay, so between Tuesday A and Thursday. That's the bulk of the weekly
128 |50 |00:10:02 ~-~-> 00:10:08 |range. And we want to be at least minimum hold until Thursday's New York open.
129 |51 |00:10:14 ~-~-> 00:10:25 |Okay, so what is the pattern at the 400 candle, that opening price, we wouldn't be buying under that on Tuesday, or Wednesday. That means, if we don't get an
130 |52 |00:10:25 ~-~-> 00:10:36 |opportunity to trade below it on Tuesday, then we wait until Wednesday, Wednesday May, in fact, not give us an entry as well. But if it does trade
131 |53 |00:10:36 ~-~-> 00:10:46 |below, we will be looking for an opportunity to go long, we will use a 50 Pip protective stop loss on our demo account. And again, room holding for New York
132 |54 |00:10:46 ~-~-> 00:11:00 |open or stop out. Again, the idea starts on Tuesday. We do not trade on Monday in this model, to ideal draw is again on the weekly chart over here for why we
133 |55 |00:11:00 ~-~-> 00:11:15 |believe the price should go higher. Again, this would be Dylan eating an intraday perspective on Tuesday. When we're bearish again, this is the weekly
134 |56 |00:11:15 ~-~-> 00:11:30 |candle here delineation with fear a gap, old low and sell assault liquidity pool as our discount arrays for the draw on the weekly candle. This opening price in
135 |57 |00:11:30 ~-~-> 00:11:42 |here, what we're utilizing is the idea of power three on the weekly chart. And we're gonna be looking for now this opening is not necessarily what's going to
136 |58 |00:11:42 ~-~-> 00:11:52 |be derived on our weekly chart here. This may, in fact be something down here, or watch this opening price here, maybe a little bit lower in the weekly candle,
137 |59 |00:11:52 ~-~-> 00:12:03 |which is fine, we don't necessarily need it to be at the very, very high. Again, with this model, I'm building the idea that we're using the highest probable day
138 |60 |00:12:03 ~-~-> 00:12:12 |of the week, which is Tuesday and or Wednesday. And the idea is we want to know where the weekly chart is most like the reaching for nothing about it. Instead
139 |61 |00:12:12 ~-~-> 00:12:20 |of trying to day trade and we're trying to figure out multiple candles intraday to see where it's gonna go. While I'm looking at a weekly candle, it's either
140 |62 |00:12:20 ~-~-> 00:12:30 |gonna go higher or lower, or it's gonna sit sideways. If we are studying price on the weekly chart, and we can see that these levels down here would be obvious
141 |63 |00:12:30 ~-~-> 00:12:39 |candidates to be filled, then we're waiting for Monday's trading that give us an insight whether or not this may or may not come to fruition. ideal scenario
142 |64 |00:12:39 ~-~-> 00:12:53 |would be this whole move up, and then we traded below it for Monday. Then if we see a similar scenario where we open at the 400 candle on Tuesday, and then
143 |65 |00:12:53 ~-~-> 00:13:05 |rally above it, we could be a seller above that price level and use a 50 pip stop loss. And just aim for Thursday's New York open. That's our first
144 |66 |00:13:05 ~-~-> 00:13:12 |objective, that doesn't mean collapse the trade entirely. It just means that that's our first minimum objective for time and price to meet. So we're going to
145 |67 |00:13:12 ~-~-> 00:13:24 |try and get the bulk or the lion's portion of the weekly range between Tuesday and Thursday. Again, we're gonna hold for New York open on Thursday or stopped
146 |68 |00:13:24 ~-~-> 00:13:38 |out. Okay, so what's the logic behind this entire model, the weekly range when bullish, we'll likely see a strong up close on Tuesdays. We do not need to
147 |69 |00:13:38 ~-~-> 00:13:49 |capture the Monday low of the week if, if it informs at all on this model. Now, when bearish, we do not require the Monday high the week either should have form
148 |70 |00:13:49 ~-~-> 00:14:03 |as well. We are seeking the range within and we're inside the weekly range between Tuesday 400 Candle opening price and Thursdays New York open as a
149 |71 |00:14:03 ~-~-> 00:14:13 |minimum objective for time and price theory. Now, your homework is to go through the charts and find scenarios like this, where it allows us an opportunity to
150 |72 |00:14:13 ~-~-> 00:14:21 |capture some expansion either when bullish or bearish using the weekly candle because we're short term trading, so we're gonna be focusing primarily trading
151 |73 |00:14:21 ~-~-> 00:14:33 |inside that weekly range. And our timeframes for this model are obviously the weekly candle or weekly chart, the daily and we're going to reduce it down to
152 |74 |00:14:34 ~-~-> 00:14:47 |the one hour. Now for timing purposes, you can use a 15 minute timeframe instead of an hourly chart. Okay, books welcome back. So this is a amplify teaching on
153 |75 |00:14:47 ~-~-> 00:14:55 |the price action model number two, short term trading and we're going to talk about intra week or intermediate reversals.
154 |76 |00:15:01 ~-~-> 00:15:14 |Okay, building on the premise of the short term weekly range strategy that we built. For model number two, we're going to open up with a stage of weekly
155 |77 |00:15:14 ~-~-> 00:15:22 |direction. Now I'm gonna throw you a curveball here. But this is what you want to know. Because not always is institutional order flow going to be remaining
156 |78 |00:15:22 ~-~-> 00:15:33 |bullish or bearish, it's going to be met with some measure of resistance, or significant support, it's going to cause a shift in momentum. And you'd be
157 |79 |00:15:33 ~-~-> 00:15:41 |prepared for that. So the reversal condition is our setup. And the pattern is the European open.
158 |80 |00:15:46 ~-~-> 00:15:55 |Alright, so we talked about how on the weekly range, we're expecting a bullish week, we're gonna see the open here. And the expectation is we're gonna see a
159 |81 |00:15:55 ~-~-> 00:16:12 |higher close on the week. But what happens if this week for this particular range is the previous week, and it trades up into a level of stiff resistance,
160 |82 |00:16:12 ~-~-> 00:16:26 |or maybe it trades up into a important premium array. Remember, if we're expecting price to trade up to that level, it's going to be many times an
161 |83 |00:16:26 ~-~-> 00:16:40 |opportunity to reverse. Now we use this theory to build the idea for a technical target, or something to reach for, or draw on liquidity. But what happens once
162 |84 |00:16:40 ~-~-> 00:16:49 |we get there, that's we're going to focus on here. On the right hand side, you can see equally when there is a bearish scenario, let's say the previous week,
163 |85 |00:16:49 ~-~-> 00:17:02 |we trade down into the actual objective we were aiming for. And it happens to be a medium term or long term discount array. While we can expect a reversal of
164 |86 |00:17:02 ~-~-> 00:17:14 |sorts, right, so at the time of this recording, we did a pre week analysis video. And we incorporated the likelihood of a seasonal tendency for the dollar
165 |87 |00:17:14 ~-~-> 00:17:27 |index to decline. And the Euro dollar and the British pound to rally. It's Wednesday of this particular week, in February 2019. And it's been shown that
166 |88 |00:17:27 ~-~-> 00:17:38 |the Euro dollar and British Pound have in fact, rallied with a weaker dollar. Couple that with some of the things I'll talk about, we get into technicals for
167 |89 |00:17:38 ~-~-> 00:17:51 |the charts. If those two currencies are suggested to go higher, seasonally, and they have reached significant discount arrays, one would assume that there's a
168 |90 |00:17:51 ~-~-> 00:18:01 |likelihood with a seasonal tendency incorporated dovetailing with a weaker seasonal tendency for the dollar index, that all foreign currency should find
169 |91 |00:18:01 ~-~-> 00:18:13 |their way higher. Because the old adage is all boats rise in rising tide. So that means if the dollar is weak, there is a likelihood very, very strong
170 |92 |00:18:13 ~-~-> 00:18:29 |likelihood that even the weakest of currency still has an advantage in finding some support or finding its way higher as well. So assuming that we have, we're
171 |93 |00:18:29 ~-~-> 00:18:38 |watching basically, over here, on the right hand side, say this was our objective, we were looking for this to be traded back up into, but what happens
172 |94 |00:18:38 ~-~-> 00:18:49 |when price trades up to that level? Okay, so much we, we've had weeks, okay, this is a weekly chart here, say we've aimed at this one, and price eventually
173 |95 |00:18:49 ~-~-> 00:19:02 |gets up there. Okay, so our buy stop liquidity pool or own high or in this case, an old low, okay, or a breaker, because that's what this is here represents a
174 |96 |00:19:02 ~-~-> 00:19:14 |breaker, we could trade up into that level and anticipate, again, some weakness to come into the marketplace. But how do you go in in gingerly, get in there and
175 |97 |00:19:14 ~-~-> 00:19:26 |try to sell short, we have to wait for certain things. And we're gonna talk about that now. So as price slams up into this price level here, we're going to
176 |98 |00:19:26 ~-~-> 00:19:38 |be looking for a specific filter for our trades. And it's going to be the European Open. We do not want to go in here and just simply sell short on any
177 |99 |00:19:38 ~-~-> 00:19:47 |oil price level or on a whim, we are looking for something to really solidify the likelihood of this market wanting to go lower when the US market structure
178 |100 |00:19:47 ~-~-> 00:20:01 |to help us do that. So obviously, you see an example here. And I'm not going to use this example so much for this teaching, but when price gets up to this level
179 |101 |00:20:01 ~-~-> 00:20:13 |here. This many times can be a shorting opportunity, especially if it's based on a higher timeframe. Premium array. Obviously, we mentioned how in this crude
180 |102 |00:20:13 ~-~-> 00:20:25 |example, it could be used as a weekly breaker, bearish breaker. And then we could look for signatures in price action to build a model that will allow us to
181 |103 |00:20:25 ~-~-> 00:20:25 |go short.
182 |104 |00:20:31 ~-~-> 00:20:46 |So what helps me build my confidence in selling short or buying a market that is in a reversal condition? Women initially we gave you the idea of using Tuesday
183 |105 |00:20:47 ~-~-> 00:20:55 |as our entry. But what happens if Tuesday doesn't really give you an entry? What happens if Tuesday is the actual turning point, and then there's a break in
184 |106 |00:20:55 ~-~-> 00:21:04 |market structure on that Tuesday? Well, then you obviously can't do anything on Tuesday, because you didn't get the setup until Tuesday's formation. So that
185 |107 |00:21:04 ~-~-> 00:21:12 |leaves Wednesday and Thursday for this model. Remember the criteria for this model number two, for short term trading, the weekly ranges we're gonna be
186 |108 |00:21:12 ~-~-> 00:21:22 |looking for a Tuesday entry, not trading on Monday. But looking for a Tuesday entry, holding through Wednesday, and a minimum hold objective until Thursday's
187 |109 |00:21:22 ~-~-> 00:21:37 |New York open, aiming for about 50 to 100 pips we're ringing in now, the element of a reversal market profile. So if we have this as a potential scenario, how do
188 |110 |00:21:37 ~-~-> 00:21:50 |I go in there and trust these types of setups and not get burned by an existing trend that continues on higher or lower? In this case, we gave you the Tuesday.
189 |111 |00:21:50 ~-~-> 00:21:59 |So we're using Standard Time, Eastern Standard Time, we're not using daylight savings time, I don't want to use daylight savings time. And I want you thinking
190 |112 |00:21:59 ~-~-> 00:22:10 |about daylight savings time. So when we have daylight savings time shift in the US, some other countries, they observe it too, but not all of them. Okay, so one
191 |113 |00:22:10 ~-~-> 00:22:21 |of the things I learned by studying time is that there is a real secret to how these markets work by just ignoring daylight savings time, don't even look at
192 |114 |00:22:21 ~-~-> 00:22:36 |it. I think that it creates a problem for certain individuals that are focused on specific things with their systems. And I think it helps the algorithm you
193 |115 |00:22:36 ~-~-> 00:22:47 |disrupt those triggers to have a a specific time based structured approach. So from a central bank standpoint, and how the algorithm delivers price into the
194 |116 |00:22:47 ~-~-> 00:22:59 |interbank price delivery algorithm, we still use a standard 400 opening price. Now, in Standard Time, Eastern Standard Time, that's going to represent the
195 |117 |00:22:59 ~-~-> 00:23:13 |midnight candle in New York. When daylight savings time shifts, he becomes the 500. I don't care about 500. Okay, I'm staying on 400. Because other countries
196 |118 |00:23:13 ~-~-> 00:23:23 |are gone, I'm not going to observe that. So even though there may be a lot of times where the 500 opening price will serve you well, I don't care. I'm
197 |119 |00:23:23 ~-~-> 00:23:40 |sticking to this, this is a constant. Okay. But what happens if we see a price level trade up into a level right into this suggested target. If that is a
198 |120 |00:23:40 ~-~-> 00:23:53 |premium array, the criteria were here of buying. Okay, we're not doing that, we're going to be looking for a shorting opportunity. So when price trades up
199 |121 |00:23:53 ~-~-> 00:24:01 |into the objective that maybe we've been following for a while, but what happens when we hit that target or done trading? Now, we want to look for signatures
200 |122 |00:24:01 ~-~-> 00:24:14 |that will allow us to go short, especially if it is a monthly or weekly, premium array. So we abandon the buy under 400. opening price on Tuesday or Wednesday,
201 |123 |00:24:14 ~-~-> 00:24:28 |you didn't for the pips stop loss, holding for Thursday's New York open or stop out. We're changing that to we're looking at the 600 European Open. And we're
202 |124 |00:24:28 ~-~-> 00:24:38 |going to be selling short above that price level. And I know it'll make more sense when I show you the examples while you're on the video. But once we get to
203 |125 |00:24:38 ~-~-> 00:24:47 |this level, if it's a long term or intermediate term, premium array, we don't want to be continuously buying that we want to be sensitive to the likelihood of
204 |126 |00:24:47 ~-~-> 00:24:59 |it maybe having a reversal. So I'm gonna give you the criteria that I use to help me get in there and not try to stand in front of a train. Inversely, when
205 |127 |00:24:59 ~-~-> 00:25:08 |we expected the market to trade down here like we've taught with model number two, once it hits that objective, are we done trading? Are we going to
206 |128 |00:25:08 ~-~-> 00:25:19 |continuously looking for lower prices, it may not provide that to us. So we want to be anticipating or be like we opened up last week and our analysis before
207 |129 |00:25:19 ~-~-> 00:25:33 |this week even started trading, the expectation was that we could potentially see a reversal in the marketplace, because seasonally things were there. And we
208 |130 |00:25:33 ~-~-> 00:25:41 |had some Brexit news also expected this week. So there's a lot of things a lot of ingredients came into this particular week. That helped us frame the
209 |131 |00:25:41 ~-~-> 00:25:58 |likelihood of an upside reversal for Eurodollar, and especially GBP USD. So cable having had the Brexit vote on this week's Tuesday, it helped us frame the
210 |132 |00:25:58 ~-~-> 00:26:11 |idea of this intermediate term or intra week reversal. It just so happened that Monday started right out the gate, higher for GDP. But once we trade assume that
211 |133 |00:26:11 ~-~-> 00:26:20 |we trade down to that level and our objectives have been met, we do not want to continuously follow this model over here, which is selling above the 400
212 |134 |00:26:20 ~-~-> 00:26:31 |openings on Tuesday or Wednesday, we want to do that. We want to be changing gears. And using again, the 600 European open, but now not selling above it but
213 |135 |00:26:31 ~-~-> 00:26:42 |looking to buy below it. If we get a market structure shift on this week, say what happens on Monday, what does happen to happen this particular week time
214 |136 |00:26:42 ~-~-> 00:26:57 |this recording. So with that Brexit instilled fear or excitement about trading the GBP USD pair along with the seasonal tendencies, along with the seasonal
215 |137 |00:26:57 ~-~-> 00:27:06 |tendencies with the dollar index wouldn't go lower. Traditionally, not against not a panacea. But hopefully you see the blending of all those things this week
216 |138 |00:27:06 ~-~-> 00:27:18 |before the week even opened up. We were on red alert. Okay, this thing could reverse and scream higher. And down the fruition several 100 pips, this KVP has
217 |139 |00:27:18 ~-~-> 00:27:30 |exploded to the upside, dollar has weakened. So the premises is once we get to our objective using model number two, we don't abandon model number two, we can
218 |140 |00:27:30 ~-~-> 00:27:40 |now still use model number two with the reversal market profile. Okay, so let's take a look at samples how we can use that. Okay, so we're looking at the dollar
219 |141 |00:27:40 ~-~-> 00:27:55 |CAD pair, and zoom in here and get a little better perspective on what we're looking at. Now, a few weeks ago, I gave you a chart with the daily suggesting
220 |142 |00:27:55 ~-~-> 00:28:09 |that we were going to work within this range up here. And right away, I'm just going to show you this low. Okay, this low comes in at 134 68 is 134 68. And
221 |143 |00:28:09 ~-~-> 00:28:24 |prior to the run up here, what would be the nearest price level using a five or zero level to that 3468? Low? So 134 68? Again, we don't look at the pet pets,
222 |144 |00:28:24 ~-~-> 00:28:36 |though, just ignore that number two after the number eight. So 134 68 The nearest zero level or five level? Under that level? would be what? 134 65,
223 |145 |00:28:36 ~-~-> 00:28:48 |right? So we're going to take 134 65, that's going to represent a key level. Now why is it a key level? Well, if you look at this very section of price action,
224 |146 |00:28:49 ~-~-> 00:29:02 |right here. Inside of that, that little nodule in price action that leads right in here, this little segment of price action is going to be significant because
225 |147 |00:29:02 ~-~-> 00:29:09 |we're gonna look at that we dropped down to a lower timeframe, I'll be able to zoom back and wherever this blue section is, you'll see what I mean by this
226 |148 |00:29:09 ~-~-> 00:29:21 |being balanced. Price traded aggressively lower. We bounced around in here between the close the low and the high and the open here and then broke below
227 |149 |00:29:21 ~-~-> 00:29:34 |this low on this candle. And then we had an imbalance so we had a city sell side imbalance by sight inefficiency. So it's stretched out pulled out really, really
228 |150 |00:29:34 ~-~-> 00:29:44 |long on the downside. And we would reasonably expect some measure of up move into that price level here. Okay, so we have the inefficiency here that gets
229 |151 |00:29:44 ~-~-> 00:29:52 |rebalanced here. So what does that make this little segment of price action right there. That makes it obviously a target. We were looking for that on the
230 |152 |00:29:52 ~-~-> 00:30:03 |upside, but more specifically once it trades to it after refining the price level. Okay, we are not in B You'll see looking inside this range, you clueless,
231 |153 |00:30:03 ~-~-> 00:30:17 |we use institutional pricing models to get to a five or zero level. Again, the 134 65 level is a calibration of the nearest five or zero level below this
232 |154 |00:30:17 ~-~-> 00:30:25 |candles low. Okay, for instance, if this candles low was 134 64, what will we use?
233 |155 |00:30:26 ~-~-> 00:30:39 |We could use 134 65. Still, because there's only one more, one more Pip. But to be fair, and more refined, it would be 134 60. Because it's the nearest zero or
234 |156 |00:30:39 ~-~-> 00:30:52 |five level, remember going up to that price level. So since the actual low was 68, we put it back up here, since the actual low was 68 134 68. We're going to
235 |157 |00:30:52 ~-~-> 00:31:02 |using the five level, it's closest to it. Okay, but not over. Because we're rounding down. If we ever coming down to a particular price level, we're going
236 |158 |00:31:02 ~-~-> 00:31:11 |to round up to the nearest five or zero level. Okay, so use your simple rules for you. So we calibrated the price level, okay, now, we'll look at this when we
237 |159 |00:31:11 ~-~-> 00:31:21 |drop into the lower timeframe. But when price hits that, how do we know when we can operate on a short basis, okay, or a reversal market profile, and not get
238 |160 |00:31:22 ~-~-> 00:31:31 |burned by a potential run up? Well, there's always going to be some measure of risk in anything we do. And reversal patterns. That's why I waited so deep into
239 |161 |00:31:31 ~-~-> 00:31:42 |the content before I started talking about it, because it requires you a great deal of the foundational studies and the core content of the mentorship. Because
240 |162 |00:31:42 ~-~-> 00:31:50 |if you just go in here and willy nilly your entry based on you thinking it's the high or low, it can hurt you. And then obviously, you'll be putting tweets on
241 |163 |00:31:50 ~-~-> 00:31:59 |Twitter, like I read last week, some guy who more or less faulted me for him. Not making money in this oil trade, even though a little traded to put the eight
242 |164 |00:31:59 ~-~-> 00:32:09 |today. So again, I'm telling you where it's gonna be drawn to, I'm not telling you you buy the time and the date. And I'm not doing that. So I want you to be
243 |165 |00:32:09 ~-~-> 00:32:17 |responsible and accountable for your own actions. Again, that's the reason why I teach in a demo account period at the Celsus. The whole reason why I do this in
244 |166 |00:32:17 ~-~-> 00:32:25 |the demo is for that particular reason right there. It's so easy for everyone to say, well, it's somebody else's fault. It's not, it's not my fault, your fault.
245 |167 |00:32:25 ~-~-> 00:32:33 |I don't tell you to get in these trades in a demo account, I certainly don't want you to with a live account. If you do it, you don't on your own. I'll get
246 |168 |00:32:33 ~-~-> 00:32:43 |off my soapbox now. So we have this price level here. Okay, now before we drop down, when prices moving, if we see every reversal here, let's assume that we're
247 |169 |00:32:43 ~-~-> 00:33:00 |right, in the assumptions that this is going to create a reversal. How far can it go down? Well, let's map that out. We have a bounced price point here. And
248 |170 |00:33:00 ~-~-> 00:33:07 |I'll explain it as I go. Then we have all this inefficiency. So that's another one.
249 |171 |00:33:17 ~-~-> 00:33:32 |Okay, and I'll just extend this a little bit more. And re below here will be a liquidity pool. So we'll have that noted, as well. And we'll just make that a
250 |172 |00:33:32 ~-~-> 00:33:42 |different color just to draw a distinction. Now, obviously, the color schemes, whatever, whatever floats your boat, I'm not here to try to sell any one thing
251 |173 |00:33:42 ~-~-> 00:33:52 |better than the other. You're the man, it's a matter of preference preference, or whatever. So we have these equal highs here as well. Now obviously, we've
252 |174 |00:33:52 ~-~-> 00:34:03 |traded through that, but that's also a level this up close rate here, that would be one I'd be watching. And that comes in at 3316, which in this case would be
253 |175 |00:34:03 ~-~-> 00:34:16 |rounded up to 3320. Or you can be a little bit a deviant and use 3315 because there's only one pip that'd be a level I'd be looking for. But we're gonna work
254 |176 |00:34:16 ~-~-> 00:34:22 |with this here. This is gonna be sufficient. Now what makes this high, important thing you probably think away, man, you just skipped her, you're not going to
255 |177 |00:34:22 ~-~-> 00:34:32 |come back to this candle, we traded up and then down off the high. So we had a little bit of a wick there. The next day, we trade up through that. So between
256 |178 |00:34:32 ~-~-> 00:34:48 |this high in this candles low, that is essentially what we got over here. It's a balanced price range. So again, I'm going to use this little price nodule there
257 |179 |00:34:48 ~-~-> 00:34:58 |and I'll just extend this out down to that low because that's going to be the context of that balanced price range. So if we get through that it's going to be
258 |180 |00:34:58 ~-~-> 00:35:12 |significant. It means we get an target the lows down here. Okay, so let's go into an hourly chart. And take some of that out of there. And here's that
259 |181 |00:35:12 ~-~-> 00:35:21 |balanced price range. Okay, so we had movement down, then we had movement up. So this is essentially a bounced price range, a really nice price range. If it
260 |182 |00:35:21 ~-~-> 00:35:29 |trades down below that, that's a significant indicator that we could probably look for a run on liquidity below or low, or what you know, we have equal lows
261 |183 |00:35:29 ~-~-> 00:35:38 |here. And then we have a little bit of a gap. Okay, so now dropping down to an hourly chart, we now have another level, then we have down close candle, which
262 |184 |00:35:38 ~-~-> 00:35:54 |is an order block. So whenever I have this cascading effect of discount arrays, we have a liquidity pool, void order block, I'm going to elect to use the order
263 |185 |00:35:54 ~-~-> 00:36:04 |block first, because that's where the last delivery on downside was, or sell side delivery. So I'm going to look at that as a primary driver. And it happens
264 |186 |00:36:04 ~-~-> 00:36:18 |to be 130 to 40. Nice round level. Also, it stretches below the 130 to mid figure 50. Now it doesn't mean that it can't hit this high here and stop dead in
265 |187 |00:36:18 ~-~-> 00:36:31 |its tracks at 51 and a half, which will be 55 calibrated. Again, since it's only one pip away 132 50 could still be used in this instance, below the lows here.
266 |188 |00:36:32 ~-~-> 00:36:45 |For liquidity pool, you have 30 to 75 That in itself is enough, it's a five level or we can do 132 70 Because we're gonna be reaching now, again, we want to
267 |189 |00:36:45 ~-~-> 00:36:57 |open up, not round up, we want to round down, because we're going expectedly below these lows to seek liquidity for stops. Okay, so anyone long, all through
268 |190 |00:36:57 ~-~-> 00:37:08 |here, maybe they kept their stop loss here. And that would be potentially in jeopardy. The levels that I highlighted already, you can see the sensitivity
269 |191 |00:37:08 ~-~-> 00:37:21 |here, intraday today, had a real nice little run up into that. I gave you a criteria for looking for institutional order flow entry drills. Okay, so how do
270 |192 |00:37:21 ~-~-> 00:37:31 |you pick your entry points? Well, I want to go inside this little area here. And we'll, we'll come back to that. Let me go back up here and build this model out.
271 |193 |00:37:31 ~-~-> 00:37:39 |Price hits it here and it's put the day dividers in. Okay, so this is last Friday, and last Thursday. So last Thursday, we hit that level, Friday, we hit
272 |194 |00:37:39 ~-~-> 00:37:50 |it again fell short of here and bang, here's our market structure break right there off of a key level. Okay, and again, this level is that daily level, where
273 |195 |00:37:50 ~-~-> 00:38:01 |price has essentially been rebalanced. So if we have this short term low here, prior to the run up into that key level
274 |196 |00:38:08 ~-~-> 00:38:21 |this low once broken here, I do not need a close below, see out went through that. That to me is a break. We're not looking for any down close requirements.
275 |197 |00:38:22 ~-~-> 00:38:31 |It broke structure right there, bang, we consolidated around it, then broke down one more time and came back up and hit it as resistance. So this level here
276 |198 |00:38:31 ~-~-> 00:38:43 |cutting through all these candles, I have to straighten this up, I learned this new trick. And for the life of me, I love it. So for the guy that shared it with
277 |199 |00:38:43 ~-~-> 00:38:53 |me, thank you very much and love it. So we hit it as resistance here and then sold off yesterday. And then today we had consolidation and then dropping off
278 |200 |00:38:54 ~-~-> 00:39:09 |the the way I use reversal pattern entries. I don't teach this in the free tutorials. Okay, so this is one of those moments where we go beyond free
279 |201 |00:39:09 ~-~-> 00:39:19 |tutorial stuff as you expect and charter member. So we have last Friday, the breaking market structure. And in Monday, small little consolidation a run up
280 |202 |00:39:20 ~-~-> 00:39:28 |right in here equal highs pokes through as a shorting opportunity right there. breaks down on more time shorting opportunity here. And then right in here,
281 |203 |00:39:28 ~-~-> 00:39:37 |we're going to talk about how we can use a short as well. But we have to ring in the European Open to do so. So I'm going to drop down into a 15 minute
282 |204 |00:39:37 ~-~-> 00:39:47 |timeframe. So we see the price action over Monday, Tuesday and Wednesday. Now let's take a look at this. Pause the video. Okay, pause the video and look at
283 |205 |00:39:47 ~-~-> 00:39:56 |what you see and understand right now based on the level of content you've gone through from the mentorship and media the free content. Look at what you
284 |206 |00:39:56 ~-~-> 00:40:06 |understand now. Okay, and then unpause the video and you'll hear me talk more about it. But don't listen, do the exercise of pausing and look at see what you
285 |207 |00:40:06 ~-~-> 00:40:20 |see and outline what you see in price action. And then I'll continue on when you hit to unpause. And so you didn't hit pause. So looking at what we have, with
286 |208 |00:40:20 ~-~-> 00:40:27 |all these levels in here, some of the actually, these levels are gonna disappear. But I'm going to give you so now we have a institutional perspective.
287 |209 |00:40:28 ~-~-> 00:40:35 |We have Monday's trading in here, which we don't trade on Monday. Remember, there's no Monday trading. So we're not going to worry about anything on this
288 |210 |00:40:35 ~-~-> 00:40:51 |particular day. On Tuesday, we have the European Open, which, again, we're using 600. That's this candle here. Okay, the opening price 133 58. We take that on
289 |211 |00:40:51 ~-~-> 00:40:59 |the 600 candle, and then we extend it out in time now, you can extend it out to nine o'clock in the morning, I'd like to do that generally, because it just
290 |212 |00:40:59 ~-~-> 00:41:10 |helps me filter out any little additional spikes that may fold the market over, based on a New York news embargo lifting for the news at 830. Okay, so I
291 |213 |00:41:10 ~-~-> 00:41:23 |extended through that point. But what we're looking for is the way we interpret the Asian range. Okay, the standard protocol for this is if you want to be a
292 |214 |00:41:23 ~-~-> 00:41:33 |seller on weakness, so now what you say you're a trader, using my concepts, and you want to use sell stops for your entries on shorts, okay, you don't trust
293 |215 |00:41:33 ~-~-> 00:41:40 |your analysis, don't picking the high or how far the Judas swing is gonna go. You just needed to bias is really, really bearish. You don't overthink it, you
294 |216 |00:41:40 ~-~-> 00:41:51 |just want to put it on autopilot and be done with it. The way you can do that, especially using model two is the Asian range theory is, if we break below that
295 |217 |00:41:51 ~-~-> 00:42:02 |the idea should be a discontinuously goes on and on for the daily range to be completed. But if we have the bearish bias, which is what we would have here,
296 |218 |00:42:02 ~-~-> 00:42:19 |based on previous week, then this is little too zoomed in, actually, here's Monday straight and here's Tuesday. And we are the the expectation is we want to
297 |219 |00:42:19 ~-~-> 00:42:27 |see price move out of the Asian range like it does here. So if we extend the Asian range out, and they really don't want to do it, but I'll do it, for the
298 |220 |00:42:27 ~-~-> 00:42:37 |sake of completeness, extend out the Asian range like that. And how I did as a highlighted it, just hold down shift on your keyboard, and then drag the line
299 |221 |00:42:37 ~-~-> 00:42:44 |out, it'll keep it straight and allow you to elongate it. So if you want to sell a weakness when you're bearish, and you don't trust how far the Judas swing is
300 |222 |00:42:44 ~-~-> 00:42:53 |going to go. If you start seeing price rally like this, okay, all you have to do is go right to the Asian range, and put a sell stop right below that. Okay, and
301 |223 |00:42:53 ~-~-> 00:43:05 |if it hits it, it fills you. Once you see the the rally up, okay, once you see it rally up that high, all you have to do is go right to the low the Asian
302 |224 |00:43:05 ~-~-> 00:43:17 |range, put a sell stop there, and then use the high of the day. But the time of watching the Judas swing, unfold, that's going to be your stop. Now, as the
303 |225 |00:43:17 ~-~-> 00:43:26 |price keeps going higher, higher, higher, higher, your stop still remains below. To get short below the Asian range, you would just open up your stock a little
304 |226 |00:43:26 ~-~-> 00:43:35 |bit more and more more and more. But eventually, at some point, it may change your leverage based on the percentage of risk. So you would need maybe sometimes
305 |227 |00:43:35 ~-~-> 00:43:48 |drop down from maybe two minis to maybe one mini or maybe one and a half. Okay, if you're if you're allowed to use that type of leverage the or I guess a better
306 |228 |00:43:48 ~-~-> 00:44:00 |example would be using two standard lots and then maybe one and a half, or one standard in five minis versus using your original two standard lots that you
307 |229 |00:44:00 ~-~-> 00:44:11 |want to sell short on want to stop here. If the swing starts to project too far beyond what would be reasonable for money management purposes on two standard
308 |230 |00:44:11 ~-~-> 00:44:18 |lots, then you may have to drop down to one standard and five minis. Okay? So that's why it's important you go to a broker that will allow you to trade in
309 |231 |00:44:18 ~-~-> 00:44:26 |minis and not force you on standard lots only. It may not be such a big deal now today, but years ago, that's how it was he made you you have to trade only a
310 |232 |00:44:26 ~-~-> 00:44:37 |standard lot and you don't want to do that. But the beauty is is once you get the Asian range defined you just wait for that break down. Now you're probably
311 |233 |00:44:37 ~-~-> 00:44:46 |thinking wait a minute, no, you're teaching us breakout trading. Now I'm teaching you a lazy man's entry approach. It's confirming when you have the bias
312 |234 |00:44:46 ~-~-> 00:44:54 |right. But also, it's still a structured concept because it gives you the ability to know where your entry is and not have to worry about being precise
313 |235 |00:44:54 ~-~-> 00:45:04 |about how far it goes up. In this instance, if you want to be expecting the I'm Judas swing the form, how much market protraction should take place. You can
314 |236 |00:45:04 ~-~-> 00:45:17 |obviously see during this particular day, Tuesday yesterday, we had a nice consolidation during the Asian range unlike what we saw here on the central my
315 |237 |00:45:17 ~-~-> 00:45:30 |dealers range. So using the the smoothest portion between the two or if it's allowed flout, okay, but in here, Asian range, one full standard deviation up
316 |238 |00:45:31 ~-~-> 00:45:46 |gives us 134 16. Again, forget the PIP, I'm sorry, the pit that so 134 16 The actual high Forum's at 134 16. Perfect. Okay, so you could be a seller at 134 15
317 |239 |00:45:46 ~-~-> 00:45:56 |or 134 12 or 134 10, and still expect it to get that far. Now, if you try to sell short at 134 16, you're probably not gonna get filled. Okay, it probably
318 |240 |00:45:56 ~-~-> 00:46:07 |won't let you get in. So you can do that, obviously, to get closer to the daily high, or just simply use the cell stop below the Asian range to get in for model
319 |241 |00:46:07 ~-~-> 00:46:18 |number two. Once you do that, what's your protocol you hold for Thursday's New York open? It's just that simple. Okay, so you're going to hopefully collect 50
320 |242 |00:46:18 ~-~-> 00:46:31 |to 100 pips between your entry point and Thursday's New York open. Now what happens if you get 100 pips before Thursday's New York open? You take it, it's,
321 |243 |00:46:32 ~-~-> 00:46:42 |you scale off of 50, you scale off at 100. And you just let it go and see what it'll pay you out more to New York open at New York open, I don't care what's
322 |244 |00:46:42 ~-~-> 00:46:50 |going on. I don't care what I have tweeted about it. You collapse the trade. It's done. That's how you follow the model. You don't care what anybody else is
323 |245 |00:46:50 ~-~-> 00:46:58 |saying you don't care about anybody else's charts. No one else's analysis, no one else's opinions, especially mine. You stick to the pattern, the rules in the
324 |246 |00:46:58 ~-~-> 00:47:09 |model, and let it do its job. It's simple. So the next day say you don't get this entry opportunity here. Okay, what's actually happening is, you're waiting
325 |247 |00:47:09 ~-~-> 00:47:18 |for the rally above. And I forgot to mention this is the whole crux of this teaching. The the usual opening price is down here. But many times you're gonna
326 |248 |00:47:18 ~-~-> 00:47:32 |see that after or during a reversal market profile, the opening will be up here. Okay, and at the 400 opening. And at 600. We're actually required to wait for
327 |249 |00:47:32 ~-~-> 00:47:43 |that hour to open up because it's a little bit more clear. Now, you can actually use this as a filter going forward in your normal trading, you don't need to use
328 |250 |00:47:43 ~-~-> 00:47:52 |the 400 I use 400 Unless I'm in a reversal market profile. But depending upon how the markets trade, like we saw it here. Okay. For instance, we have the
329 |251 |00:47:52 ~-~-> 00:47:55 |opening price here. Okay, right in here.
330 |252 |00:47:56 ~-~-> 00:48:13 |Right? There for today. So the open on this was 133 63. Okay, so at 400. That means, yes, you could have gotten it here, but you didn't get in here on this
331 |253 |00:48:13 ~-~-> 00:48:23 |rally up. But using the 600 or European Open, he obviously could get it here. But then you also get it here. So it says your filter, you want to be selling
332 |254 |00:48:23 ~-~-> 00:48:34 |short above that opening price, you want to be selling short above the opening price, you don't have to do it this way. Again, your your selling strength, this
333 |255 |00:48:34 ~-~-> 00:48:45 |is how you do it. But if you want to be a seller of weakness, again, use the Asian range. extended out in time
334 |256 |00:48:51 ~-~-> 00:49:02 |if price breaks below it, okay, once it breaks below, it has to happen after 600 for European Open, that's that's the other filter, you want to see it happen
335 |257 |00:49:02 ~-~-> 00:49:15 |like here, here's 600 It breaks below the Asian range here. So that's good. Here's Asian range low. It breaks below it here after 604 European Open, which
336 |258 |00:49:15 ~-~-> 00:49:29 |is good. So you sell short on a stop here. And you use the high of the day here. Your stock goes above that. Now you're going to find that many times the market
337 |259 |00:49:29 ~-~-> 00:49:37 |may look like it's starting to tear off like it does here. And maybe it would have spooked you. Okay, but it doesn't get to this level or just above it. The
338 |260 |00:49:37 ~-~-> 00:49:45 |reason why 600 European Open is being used and you're probably saying well wait, it's really not that much difference here. I'm showing you this example here and
339 |261 |00:49:45 ~-~-> 00:49:55 |I want you to start studying every other instance in the future and also study 600 European Open every single day. And you'll see many times it's more precise
340 |262 |00:49:55 ~-~-> 00:50:05 |about where you're Judas swing is to be trusted. In other words, it's helps remove the ambiguity that comes sometimes using the New York midnight open.
341 |263 |00:50:06 ~-~-> 00:50:18 |Okay, so especially when we chance for from standard time to daylight savings time, because some traders, again used to time in New York, their models, okay,
342 |264 |00:50:18 ~-~-> 00:50:27 |wanna watch fun bases are based on New York time. So it's going to be a little skewed because of that. I really like to use European open rate about the first
343 |265 |00:50:27 ~-~-> 00:50:37 |two weeks when we transfer or transition from standard time to daylight savings time in the States. And it helps me refine my Judo swings where I can sell or
344 |266 |00:50:37 ~-~-> 00:50:52 |buy based on this specific opening price. The standard deviations here using the expansion, you can see that we were looking for I was looking for San deviation
345 |267 |00:50:52 ~-~-> 00:51:05 |for on this particular day here, it's 133 49. The high comes in, I'm sorry, low comes in at 133 49. So it went one pip at below where I was looking for to go
346 |268 |00:51:05 ~-~-> 00:51:18 |create a low the day. Here again, same thing. I was looking for San deviation number three on this day here, but I'm gonna show you what I'm doing with this.
347 |269 |00:51:20 ~-~-> 00:51:32 |Mean is zoom this up here. The standard deviation to two standard deviation three. Okay, let me show you what my settings are kind of your final can you
348 |270 |00:51:32 ~-~-> 00:51:41 |just show me what the settings are. This is what I got. I usually change this to central my dealers range when I'm really showing you central bank dealers range.
349 |271 |00:51:41 ~-~-> 00:51:51 |But since this has been deviations of Asian range, I just change it whenever it's necessary for your learning. But I just use the numbers interchangeably. I
350 |272 |00:51:51 ~-~-> 00:52:01 |don't need it for my own personal charts, because I know what I'm looking at. This is what I have. Now you have a video and mentorship content that shows me
351 |273 |00:52:01 ~-~-> 00:52:13 |giving you the levels to have like 9.5, then 10 and 10.5 than 11. I don't do that because I can get more bang for my buck. Using it this way. And you're
352 |274 |00:52:13 ~-~-> 00:52:21 |probably asking, Well, what is this level right here? Okay, I saw this question on the forum. So you, you're gonna get the answer here. This level is just
353 |275 |00:52:21 ~-~-> 00:52:32 |simply the split, just like flour, can we do flout based on the 50% measurements. So in words, if the flat measurement is the highest high and the
354 |276 |00:52:32 ~-~-> 00:52:46 |lowest low, or the body's highest high and lowest low, that total measurement is flat, but we do projections based on a 50% of that range. So all this is is the
355 |277 |00:52:46 ~-~-> 00:52:55 |first projection of 50% of this range low to this range high. Okay, and I'll show you what I mean by that. Here is the high and the low of that range, right?
356 |278 |00:52:56 ~-~-> 00:53:07 |There. Here's 50% of that. Okay, so if I get a little box to show you graphically, it may not look like it, but it's always is this that measurement
357 |279 |00:53:07 ~-~-> 00:53:15 |right there. Okay, so here's 50% of that, we'll take this away, get rid of that box, oops, don't want to do that.
358 |280 |00:53:20 ~-~-> 00:53:37 |Going to get rid of not the deviations, there you go. So that this box represents half of the range here. Now if we break below this, that takes us
359 |281 |00:53:37 ~-~-> 00:53:50 |right to that first level here. Okay. That's all it is. It allows me to keep my indicator clean. And it's also very mysterious. If I end up inadvertently
360 |282 |00:53:50 ~-~-> 00:54:01 |showing something on a Twitter chart, if I'm like, I just, I'm afraid I'm gonna end up sharing this stuff. By accident. So I'm doing recordings. And I'm always
361 |283 |00:54:01 ~-~-> 00:54:08 |doing administrative work while I'm doing it sometimes. And I may flash your chart, and I may not catch it when I do my editing. Because I'm speeding up the
362 |284 |00:54:08 ~-~-> 00:54:16 |chart, it's hours long. And I'm compressing it all down into 45. Second Salman, I'm aware that I may flash these types of things in the chart, and it's just
363 |285 |00:54:16 ~-~-> 00:54:27 |going to be basically teaching. So what this allows me to do is this gives me one half of this range here. And then I can visually see another half would be
364 |286 |00:54:27 ~-~-> 00:54:36 |here. And then there's the standard deviation, one, two, don't be thrown by the sand deviation, one because that number is gonna jive with what was taught to
365 |287 |00:54:36 ~-~-> 00:54:46 |you in the core content. I do that because people and I've seen a lot of these people do it. They go all the way up to month 11. And he quit. I don't know why
366 |288 |00:54:46 ~-~-> 00:54:55 |they do that. But there's a lot of gaps even in the core content, because that's why there's a charter membership. Okay, the charter membership. I drag that out
367 |289 |00:54:55 ~-~-> 00:55:04 |too. There's a lot of content that I had to bleed out very, very slowly because there's telegram chat rooms out there that are sharing people's content that got
368 |290 |00:55:04 ~-~-> 00:55:11 |kicked out and you think they're smart, are giving out this PDFs and such as PDFs aren't helping anyone, okay, they're not, they just allow you a place to
369 |291 |00:55:11 ~-~-> 00:55:22 |put your notes at when I give you amplifications of lessons. So when we have these levels like this, I can visually see where the mid levels are. Okay, and
370 |292 |00:55:22 ~-~-> 00:55:30 |if you want to get real precise, for instance, this daily low here, this is the low I was looking forward to reach down into, this is where we hit a full
371 |293 |00:55:30 ~-~-> 00:55:42 |standard. But watch what happens, it goes right to a mid mid level. There should mid mid level there. And I'll drop it right on the 50%. And you'll see it nails
372 |294 |00:55:42 ~-~-> 00:55:53 |the low, perfectly. Okay, so gives you the your, I can see the middle levels, okay, without needing to do all this. But if I want to get the actual level
373 |295 |00:55:53 ~-~-> 00:56:01 |broken down to a specific price point here, that's all I do is a drop a fib on between standard deviation, one standard deviation to wherever the 50 level is,
374 |296 |00:56:01 ~-~-> 00:56:16 |that's where I drop a line in and I know what I'm looking for. So that's that. But we're looking for opportunity opportunities to hold again, with the setups
375 |297 |00:56:17 ~-~-> 00:56:30 |with shorts above European Open. After a potential turning point, which we got last Friday, on your dollar cat, we open up the week before he even started
376 |298 |00:56:30 ~-~-> 00:56:39 |trading with the likelihood that the dollar could succumb to its bare seasonal tendency and allow foreign currencies to rally up. If you look at the seasonal
377 |299 |00:56:39 ~-~-> 00:56:49 |tendency for Canadian dollar from your core content, it does have a rather slippery looking sideways consolidation during these next couple of weeks. But
378 |300 |00:56:49 ~-~-> 00:56:58 |then during April, it really starts to tear higher with a seasonal tendency. And that will be bearish for dollar CAD because it's the inversion of the futures
379 |301 |00:56:58 ~-~-> 00:57:14 |market for Canadian dollar. So just as a measure of completeness, we will look at this little moment. And here. Again, you guys the price action entry, or
380 |302 |00:57:14 ~-~-> 00:57:24 |institutional order flow entry drill, how to get your entry prices, that if you look at this little area here, same thing, this is a bounce price range. We want
381 |303 |00:57:24 ~-~-> 00:57:33 |to look at the opening here, why the opening here and not the bottom here. Okay, the opening price here is essentially the closing price on this candle. So we
382 |304 |00:57:33 ~-~-> 00:57:52 |want to look at the close. I'm sorry, the open down to this candles high. Right here. Right? There. Can you see that? Right there to this candles opening? This
383 |305 |00:57:52 ~-~-> 00:58:06 |is all sell side and balance by side inefficiency. It's inefficient, it's up delivery or how price is going to go up. It's lacking that. Okay? It doesn't, it
384 |306 |00:58:06 ~-~-> 00:58:14 |doesn't need to fill this entire range. Doesn't need to do that. Sometimes, there's this common gaps that exist in price action. This, this is why I say
385 |307 |00:58:14 ~-~-> 00:58:23 |that we want to use the 50% of that level. Okay, and you can look at the bodies of the candles see that? Yes, we get this little and a price of a spike here.
386 |308 |00:58:23 ~-~-> 00:58:29 |Now I'm not trying to say that order to optimal trade entry because that's not what I'm getting and don't get tripped up by that. We're focusing on the 50%
387 |309 |00:58:29 ~-~-> 00:58:37 |level. Okay, look at the respect of the price action. Again, the bodies of the candles that were the bulk of the volume is the trade there, boom, open right
388 |310 |00:58:37 ~-~-> 00:58:48 |there doesn't trade any higher than that is faster. Oh, wait over this. To me. It's such a beautiful thing to see over and over and over again. Okay, I teach
389 |311 |00:58:48 ~-~-> 00:58:57 |this as consequent encroachment. You know, this is what we're allowed to expect. We don't need to see it go out and close the gap. Okay, if we get straight up to
390 |312 |00:58:57 ~-~-> 00:59:06 |that price point and starts to roll over many times that significant signals a very stronger trade idea than if it was the goal without and fill the gap. In
391 |313 |00:59:06 ~-~-> 00:59:15 |this case, it just says okay, this is really really weak. So, it since it can't close the gap, man, it's heavy. It's really really heavy. Heavy being that it's
392 |314 |00:59:15 ~-~-> 00:59:27 |very bearish. We have equal loads in here so you could be a seller up here. If you've missed this using this as your narrative we rated above the European Open
393 |315 |00:59:28 ~-~-> 00:59:43 |sold off aggressively. Equal lows Katie Lam liquidity pool Southside liquidity, sell short here. Do your projections below alright, so we have our equal lows
394 |316 |00:59:43 ~-~-> 01:00:00 |here. And here's 10 tips 20 Right there 20 pips finger you got one little wick down below it. Okay, simple. It spreads to that 50% of the sandy beach Using
395 |317 |01:00:00 ~-~-> 01:00:13 |standard deviation two and standard deviation, three. Okay, I think we'll probably see this trade two tomorrow, that price level. But that's model number
396 |318 |01:00:13 ~-~-> 01:00:24 |two, how we use it with reversal market profiles. And you just simply look for elements that would support the idea. Again, using the European Open as your
397 |319 |01:00:24 ~-~-> 01:00:31 |filter. When we're bearish, we want to be selling short above that, if you don't want to be selling above it and you're bearish, you don't trust your ability to
398 |320 |01:00:31 ~-~-> 01:00:42 |pick how far we'll go up. The easy Nan's approach or easy ladies approach to getting short is this extending the Asian range low when bearish. And your Sell
399 |321 |01:00:42 ~-~-> 01:00:57 |Stop would be below that. After three, I'm sorry, after 600 or European Open time. That's again, we're not shifting time zones or nothing like that, because
400 |322 |01:00:57 ~-~-> 01:01:07 |of daylight savings time and kill zones, we do not shift times with that either. Okay, we just add one more hour to the back end of it. So onwards, if we've used
401 |323 |01:01:07 ~-~-> 01:01:24 |our 11 to 13 for kill zones for New York open. Now it goes to 11 to 14, he just added an extra hour, okay. And like I mentioned in mentorship, I just keep those
402 |324 |01:01:24 ~-~-> 01:01:34 |extended hours as standards on my chart. Okay, I'm aware, at least in my analysis, I don't draw out boxes and represent new kill zones and such. In my
403 |325 |01:01:34 ~-~-> 01:01:42 |own analysis, I know I'm looking forward and under the time window I'm working in. Because I'm an educator and you're learning from me, I'm obligated to kind
404 |326 |01:01:42 ~-~-> 01:01:48 |of like put these annotations on the chart, and that's where you pick it up. I don't need to learn it, you guys need to learn it. So by me putting it on the
405 |327 |01:01:48 ~-~-> 01:02:01 |chart and as lipsticks help communicate when and where it's salient. Sophie found this teaching insightful, and we'll be back again in 2020 with an
406 |328 |01:02:01 ~-~-> 01:02:11 |additional insight to this model. Next month we'll be working on amplification for model number three. Talk to you next time wish good luck and good trading