ICT Charter PAM 6 - Algorithmic Theory
Last modified by Drunk Monkey on 2024-02-09 09:33
Outline
00:00 - A trading model using market maker sell model and fractals.
- Market maker sells model: two stages of accumulation for price run to key level.
- ICT uses a universal trading model (model #6) to analyze the market, which involves identifying accumulation and distribution patterns.
- ICT uses this model to trade the S&P emini futures June contract for 2022, with a focus on identifying a fair value gap and accumulating at a discount.
04:16 - Using market maker models for trading.
- Identify market maker buy or sell models to find entry strategies.
- ICT teaches algorithmic trading concepts through daily workshop-style lessons, emphasizing journaling and annotating charts.
07:52 - Trading strategies and market analysis.
- Trader anticipates runs and pyramids for fair value gaps and institutional order flow entries.
- ICT emphasizes the importance of publicly available evidence and consistency in trading, rather than relying on private interpretations or elite status.
- He provides examples on Twitter and YouTube to demonstrate how to identify repeating patterns in price action, which can inform trading decisions.
- ICT: Market maker buys at fair value gap, expecting rally.
- Second stage accumulation occurs as market maker takes profits, leading to deeper liquidity.
15:29 - Analyzing price action and identifying trading opportunities.
- Analyzing price swings for signs of distribution and accumulation to predict future price movements.
- ICT emphasizes the importance of confluence in identifying valid trading opportunities, citing factors such as time of day, day of week, and seasonality.
- ICT advises against relying solely on the fear of a gap, and instead emphasizes the need for other confluences to support a trade, such as institutional accumulation or distribution.
19:58 - Technical analysis and trading strategies.
- ICT emphasizes the importance of hard work and perseverance in learning technical skills.
- ICT explains his process of identifying potential trading opportunities by analyzing price action for signs of accumulation or distribution, using a framework based on Wycoff's market maker models.
- ICT looks for specific elements to balance themselves out based on the side of the curve price is on, and adds contracts as price moves in the expected direction, with a maximum of 10 contracts in any one position.
24:20 - Technical analysis and market prediction.
- ICT: Market maker using fractal model, accumulating at consolidation area for potential breakout.
- ICT: Expecting price to trade above 4143.5, with smart money accumulating at lower levels.
- ICT outlines a price run in a 15-second chart, identifying stages of accumulation and a dynamic price run.
- Developing confidence in trading by blending experience and discipline.
Transcription
| 1 | 00:00:00 --> 00:00:10 | ICT: fact that this is going to be our algorithmic discussion and lecture for model number six, universal trading, specifically dealing with the buy side, low |
| 2 | 00:00:10 --> 00:00:22 | resistance, liquidity runs and fractals. Alright, so, obviously, without going through all of the details, as I've already done in the previous videos for this |
| 3 | 00:00:22 --> 00:00:33 | model, in the time that you've been spending with me, obviously, you can see that there are lots of market makers, so models, market maker by models. And |
| 4 | 00:00:33 --> 00:00:43 | because they're fractal, it means they can appear in form on any timeframe. But without the logic of the narrative, why should it go up to a specific level? |
| 5 | 00:00:44 --> 00:00:58 | Okay, we're looking at a market maker sell model here. And there are two stages of accumulation. When I'm looking for a price run from whatever the market price |
| 6 | 00:00:58 --> 00:01:09 | would be in, say, I'm bullish, the first thing I'm doing is I'm going through the timeframes highest to lowest. And I'm looking for some kind of narrative |
| 7 | 00:01:09 --> 00:01:22 | that would be utilized for the price to be drawn up to a specific key level as a form of a premium array. Now, if I go into a marketplace, and I'm looking for |
| 8 | 00:01:23 --> 00:01:32 | shorts, and I have room before where the market price is at the time of me sitting in front of the chart, and where I think the markets going to create |
| 9 | 00:01:32 --> 00:01:42 | that short entry, if there's enough range there, I'll always consider using the buy side of the curve of market maker Simone, that's basically the blue shaded |
| 10 | 00:01:42 --> 00:01:54 | area here. And I may not get the first accumulation. So what I'll look for many times is the second stage of reformulation that sets me up a run up into that |
| 11 | 00:01:54 --> 00:02:03 | premium array. There's examples on me on my YouTube channel, I used to do it on you on YouTube, and have since deleted some videos, obviously, because I had |
| 12 | 00:02:03 --> 00:02:15 | music. Back in old days when on Twitter, I would show examples of me buying and selling the same instrument. And it was me using what I'm showing you here, |
| 13 | 00:02:15 --> 00:02:29 | okay. So it's not a matter of getting in front of you with a chart and walking you through it. Because there's so many examples and so many variables. This is |
| 14 | 00:02:29 --> 00:02:38 | why I dubbed it a universal trading model, because you're going to learn over years of experience, okay? Even if I showed you an example, every single day, it |
| 15 | 00:02:38 --> 00:02:51 | still won't scratch the surface of the flexibility. Knowing how to read price and utilizing this framework will give you if you're looking at, say the markets |
| 16 | 00:02:51 --> 00:03:06 | trading here and say it's the s&p, okay, I use this idea this morning with the s&p emini futures June contract for 2022. And accumulation, re accumulation up |
| 17 | 00:03:06 --> 00:03:16 | to a premium array. Now the problem I had at the time was I was not sure exactly where the premium array was, but I knew it was going to draw up higher, because |
| 18 | 00:03:16 --> 00:03:26 | we were failing to make a lower low. And it should have broke at 830 News and tapped into the sell side load the marketplace. It didn't do that. So I seen the |
| 19 | 00:03:26 --> 00:03:34 | shift in market structure, something to this effect, came back down into a fair value gap, even overshot the fair value gap. But I was still confident that the |
| 20 | 00:03:34 --> 00:03:44 | trade would likely pan out because there was a reason for to go to the premium, we were already at a discount ahead of the 930 opening for s&p. So I was using |
| 21 | 00:03:44 --> 00:03:55 | this framework here, accumulation rate accumulation, but I did not know with any certainty as to what the objective would be on the upside. So I just use the |
| 22 | 00:03:55 --> 00:04:06 | nice, easy objective, a fair value gap below an old high, which happened to get run out later on. So I didn't get the actual run, highest exit strategy or price |
| 23 | 00:04:06 --> 00:04:15 | point. But I didn't need it. Okay, so I was using this universal trading model, model number six using the buy side of the curve of the market maker sell model. |
| 24 | 00:04:16 --> 00:04:24 | And that's a whole lot of stuff coming out my mouth. But if you've been with me long enough, everything I just said makes sense to you. But this is also what I |
| 25 | 00:04:24 --> 00:04:32 | meant when we would get into algorithmic theory because it won't help anybody that has already gone through the content and studied and been with me under my |
| 26 | 00:04:32 --> 00:04:45 | wing for at least the minimum of a year. So I want to counsel you to go through all timeframes each week, like go through, find price runs that have a nice sell |
| 27 | 00:04:45 --> 00:04:55 | off or a rally from them beginning at a specific price point and then backtrack that and see if there is a market maker buy or sell model this linked to that |
| 28 | 00:04:55 --> 00:05:04 | and you're gonna find most of the time that's the case. So when we're looking at first stage in Second Stage accumulation before the turning point of the market, |
| 29 | 00:05:04 --> 00:05:23 | Marcelo, you can use, for instance, that market maker accumulation phase here and hunt, the YouTube model that is our module 13 entry strategy. Or you can use |
| 30 | 00:05:23 --> 00:05:33 | a simple fair value gap that's over here, it's coming back down. And that's your long there. And the same thing here. So I want you to think about how you can |
| 31 | 00:05:33 --> 00:05:45 | utilize entry strategies with this premise in mind. But generally, you want to know where it's reaching for some some kind of a target some kind of a premium |
| 32 | 00:05:45 --> 00:05:57 | array. And I know that the folks that went through 2021 that rushed through it, especially the folks that paid an accelerated pace, they're not going to get |
| 33 | 00:05:57 --> 00:06:06 | that much from these videos, it's going to feel incomplete or disjointed. And it's only because you don't know what you should know before watching these |
| 34 | 00:06:06 --> 00:06:19 | videos. So in other words, the algorithmic theory videos are really like the conversation that I would have, we were having on like a workshop for the full |
| 35 | 00:06:19 --> 00:06:27 | week. And each day I was teaching you components, and ideas and how each thing fits together and what you should be looking for and what you shouldn't be |
| 36 | 00:06:27 --> 00:06:35 | looking for, and how to navigate this and what to expect here. And there. You should have things under your belt already. So that way, when I'm casually |
| 37 | 00:06:35 --> 00:06:44 | talking about things, and giving you my best advice for what you should have gleaned from all this, being under my mentorship is primarily that all these |
| 38 | 00:06:44 --> 00:06:56 | things fit together. You can't fit them together yet, because you're so new at doing this. But if you focus on the fact that you can't do it right now, and you |
| 39 | 00:06:56 --> 00:07:07 | get frustrated with it, it will keep you from ever getting good at doing it. And you just got to continuously press into it back testing, seeing examples. |
| 40 | 00:07:09 --> 00:07:19 | Journaling, okay, that's the number one thing journaling and annotating your charts. So obviously, the concepts work, obviously, this model is the closest |
| 41 | 00:07:19 --> 00:07:28 | thing to what I actually doing in my trading without actually giving you my actual trading model. But this is very, very close to it. And you can see I |
| 42 | 00:07:28 --> 00:07:43 | absolutely lean on these teaching models to show you what I can with the language I created without divulging too much. So when I show my examples, you |
| 43 | 00:07:43 --> 00:07:52 | can clearly see the logic in these market maker by models and cell models, you can see the logic of me entering and peer meeting entries. Okay, when I'm doing |
| 44 | 00:07:52 --> 00:08:04 | more entries, except for times where it doesn't give me an opportunity to do a peer meeting. And when would that be if we know that the market has already ran |
| 45 | 00:08:04 --> 00:08:17 | up, okay, and say I have a target or premium array up here. And it runs up at least above 50% of the run from where I'm thinking the market starts it's run to |
| 46 | 00:08:17 --> 00:08:28 | a premium, but it runs 50% of that, then it retraces I'm going to assume at that moment that we're only going to have one stage of accumulation. That means I |
| 47 | 00:08:28 --> 00:08:41 | can't do any permitting. So when I'm looking at a run from market price to a premium, I'm anticipating this type of run here. But I needed to have at least |
| 48 | 00:08:41 --> 00:08:53 | two stages for I can't pyramid. So if I'm going long in here, and then I get this long here, I can pyramid or if I go long here and it runs up and fall short |
| 49 | 00:08:53 --> 00:09:03 | starts to retrace, then I compare it again because I know we have yet to reach the premium Orion for Terminus. So I'm not trying to pyramid for the sake of |
| 50 | 00:09:03 --> 00:09:13 | permitting, it has to have an unrealized range still in the marketplace. Meaning unrealized is like from here to target I was looking for or from this low to the |
| 51 | 00:09:13 --> 00:09:22 | target I'm looking for. That's unrealized range. So that doesn't mean that you are going to get that objective. It doesn't mean that in my thought process the |
| 52 | 00:09:22 --> 00:09:33 | inner dialogue is is I'm looking for runs that will hopefully give me a fair value gap, institutional order flow entry drill, a short term, sell, stop, run, |
| 53 | 00:09:34 --> 00:09:50 | and then rally. So by having these ideas and utilizing what I've taught you from conceptual entry strategies to money management, and also pyramid thing, they |
| 54 | 00:09:50 --> 00:10:01 | all come together when you have the experience behind you to see them before they form. And it sounds lofty, it sounds You know, |
| 55 | 00:10:03 --> 00:10:12 | mythical, but you've seen many examples and just, you know, in a small little vignettes, I do on my now Twitter account, again, you can see it, you can see |
| 56 | 00:10:12 --> 00:10:23 | the examples that I show on the YouTube channel. Because I make those examples, always public, there's never been any secret private interpretations or examples |
| 57 | 00:10:23 --> 00:10:32 | shown just in the mentorship. Okay, I might amplify things that I've shown publicly. But I'm not really doing anything in here, that's private. Because I |
| 58 | 00:10:32 --> 00:10:42 | want every bit of the evidence I'm ever going to submit, it's going to be in public record. So when we have these moments, where it gives you at least two |
| 59 | 00:10:42 --> 00:10:56 | stages of accumulation, and we're bullish, you may elect to only trade on this side, in may not want to trade short up here, that's fine. For the aggressive |
| 60 | 00:10:56 --> 00:11:07 | dynamo, okay, and I'm sure all of you, especially the young guys are wanting to do that, because you seen what I've done, and it seems like elite status where |
| 61 | 00:11:07 --> 00:11:16 | you're buying, selling it near the high, and then shorting it, writing it down to allow covering and buying again, riding up to a short term high. That's |
| 62 | 00:11:16 --> 00:11:27 | phenomenal trading, okay, I'm not gonna go any punches to be able to do that you're really dialed in, you aren't going to be able to do that right away. But |
| 63 | 00:11:27 --> 00:11:40 | utilizing what I've taught you, you can go in grow into that. Well measure of aptitude. But trying to rush to do it right away, for the sake of being able to |
| 64 | 00:11:40 --> 00:11:49 | say I can do it like ICT or I can do it because, you know, I'm better than everybody else. That shouldn't be the motivation, the motivation should be, can |
| 65 | 00:11:49 --> 00:12:02 | I find a setup that's repeating all the time from here or here to a level that repeats with my consistency Am I able to find that type of framework. And if you |
| 66 | 00:12:02 --> 00:12:12 | only have one stage of accumulation here, you know that you're going to probably be in a parabolic price run unless you're bearish and it's going to in a hurry |
| 67 | 00:12:12 --> 00:12:22 | to get to that level just to go down. So that means you'll be pressing more on the sell side, which we'll talk about in model number seven's algorithmic |
| 68 | 00:12:22 --> 00:12:41 | theory. So using the examples from when I showed on Twitter this morning, May 31 2022. You can see prices consolidating here. And I felt that they could have |
| 69 | 00:12:41 --> 00:12:50 | taken this I but I was more interested in the relative equal highs here, admittedly, but ended up going above and sweeping that. So I was bullish, |
| 70 | 00:12:51 --> 00:12:59 | because we did not take out the sell side here. We went down real close to it. And we had a fair value gap in here. So I was thinking, Okay, I want to be |
| 71 | 00:12:59 --> 00:13:07 | buying in the fair value get, which I did. My staff was just below the low, and it got close. But I was confident that it wasn't gonna do it, because it should |
| 72 | 00:13:07 --> 00:13:17 | have already ran it in the fact that it was being very slow and lethargic about it. And it was ahead of the 930 opening. So 830 News couldn't push us down. |
| 73 | 00:13:19 --> 00:13:29 | Okay, so here's a 30 went lower here. And then we rallied up short term shift in market structure, with a fair Vega going long stop loss below the swing low. |
| 74 | 00:13:30 --> 00:13:47 | That's it. Watch what happens though. It rallies offers me profitability. What's this? It's returning back to the original consolidation right. So this is first |
| 75 | 00:13:47 --> 00:13:59 | stage of accumulation, you could be a buyer there with the expectation that we would run out of equal highs or best case scenario, which I was not expecting. |
| 76 | 00:14:00 --> 00:14:12 | That felt it could happen. But my interest was really lying here initially. So you could be a buyer here with that target there. And here's second stage |
| 77 | 00:14:12 --> 00:14:24 | accumulation here, fair a gap drops down until and then delivers to the premium array and then what happens, the sell side of the curve begins and it takes off |
| 78 | 00:14:24 --> 00:14:31 | and trades aggressively lower, taking out the original consolidation and digging into a deeper pool of liquidity. |
| 79 | 00:14:36 --> 00:14:46 | When the market maker bimodal focusing on the buy side, low wages and liquidity runs in fractals, we're looking for instances where we expected the market to |
| 80 | 00:14:46 --> 00:14:56 | turn down here. Okay, and as luck would have it, I have another example of that today. So the market trades down into a level that I think you're you're |
| 81 | 00:14:56 --> 00:15:07 | interpreted as a discount, and then you wait for some measure of reversal has shifted market structure, a low risk by and then accumulation and then re |
| 82 | 00:15:07 --> 00:15:18 | accumulation second stage. And it runs to clear the original consolidation for that liquidity. This pattern, if you haven't already noticed that I should have |
| 83 | 00:15:18 --> 00:15:29 | mentioned this on the previous slide, talking about the market maker somehow, but it's interchangeable and everything is reversed in terms of the logic. But |
| 84 | 00:15:29 --> 00:15:45 | this could be a weekly profile. This could be an intraday profile. This could be a monthly profile silhouettes, all these price swings are fractal. But the |
| 85 | 00:15:45 --> 00:15:57 | expectation of what is it doing its consolidated here to go down? Why is it going to go down? It's going to go down to go higher. That's the narrative going |
| 86 | 00:15:57 --> 00:16:06 | in a consolidation breaking, retracing back here, is it retracing here to go higher than this? Or is it retracing just to go short, it's retracing just to go |
| 87 | 00:16:06 --> 00:16:17 | short. So that's distribution, first phase distribution, second stage distribution. So when we get down to this level, here, we're looking for a point |
| 88 | 00:16:17 --> 00:16:26 | at which price basically proves to us that wants to go higher. And that will take place in the in the form of a short term market structure shift. And you |
| 89 | 00:16:26 --> 00:16:35 | can utilize what I've taught on YouTube channel model for that, to make it very simple and simplistic, then we wait for evidence that shows us that it wants to |
| 90 | 00:16:35 --> 00:16:47 | go higher. So every time there's a point of up candles on the sell side of the curve, that means the lowest point to the left, here is a point at which there's |
| 91 | 00:16:47 --> 00:16:56 | up close candles, or will we be expected as up close candles prior to that move lower. Same thing here, up close candle somewhere in this price swing, we carry |
| 92 | 00:16:56 --> 00:17:05 | them across the curve, that means this turning point here, this level here, we carry that through the curve as well. So we're looking for a retracement back |
| 93 | 00:17:05 --> 00:17:14 | down into an old area distribution becomes a new level of accumulation. So first age accumulation is here, you could be a buyer, and second stage re |
| 94 | 00:17:14 --> 00:17:24 | accumulation. That's where the most dynamic price move is going to occur. And then it rallies. So I'm looking for this phenomenon to occur in every timeframe |
| 95 | 00:17:24 --> 00:17:35 | I'm looking at. If I can find it, it fits the narrative of why I think price should be doing what it's doing. And if it's a biased, I feel comfortable with |
| 96 | 00:17:35 --> 00:17:46 | trading with the higher timeframe bias behind me. And it's time of day and day of week. And it's maybe even on seasonal tendency not to do you have to have |
| 97 | 00:17:46 --> 00:17:55 | that. But that even helps a lot more than it gives me the confidence to be able to take the trades and like I get a lot of questions still by members from the |
| 98 | 00:17:55 --> 00:18:05 | 2016 group. How do I know to trust the fair value gap? Well, it has to fit this kind of logic here. And if I get a fair Buy Get in here that overlaps with a old |
| 99 | 00:18:05 --> 00:18:14 | area of distribution, I'm going to trust that fair of a gap isn't going to be broken to the downside and just break lower. If it does, that's okay, I'm paying |
| 100 | 00:18:14 --> 00:18:25 | a stop loss to do its job. Same thing over here, if I see an old area of distribution, now becoming an old theory of distribution, now, re accumulation. |
| 101 | 00:18:27 --> 00:18:36 | That is an area I'm going to trust because I have the narrative that we're likely to go above these highs, we went down the hill up, we showed a shift in |
| 102 | 00:18:36 --> 00:18:45 | market structure we showed accumulation in here. Now we're in the area where it should be accumulate. So if there's a fair value gap in here, for institutional |
| 103 | 00:18:45 --> 00:18:53 | wonderful integral, I'm going to take that trade with the expectation that I don't think it's going to close in the gap in the over, overlap it and go lower, |
| 104 | 00:18:53 --> 00:19:02 | in other words, so I'm trusting it because I have other confluences behind me. So I'm not going into the marketplace with this one of these ideas that I'm |
| 105 | 00:19:02 --> 00:19:12 | teaching you. And that's all there is to it. That's not what I want you to view in my interpretation of price action. I don't want you to make a model out of |
| 106 | 00:19:12 --> 00:19:20 | one thing, just the fear of a gap alone is useless in the hands of a neophyte. So you have to have all these things behind you. And if you just look at the |
| 107 | 00:19:20 --> 00:19:28 | comments in my Twitter or on my YouTube channel, the folks that are just now trying to learn how to do this. They're rushing the golden errand tree with live |
| 108 | 00:19:28 --> 00:19:37 | funds. They're making mistakes because I thought I saw this fair value gap here. Or they'll send me a message and they want me to more or less cosign their |
| 109 | 00:19:37 --> 00:19:46 | trade. That was always the case, even in the mentorship groups here. People would always send me emails, and the largely would go ignored, because they want |
| 110 | 00:19:46 --> 00:19:56 | me to give them a seal of approval. I don't have time to sit down and look at everybody's emails in the one, two. If I tell you or if I give anybody else |
| 111 | 00:19:56 --> 00:20:04 | feedback about their trade, it's not their trade. It's monetary. You're not gonna learn anything except for codependence. So you have to go through the |
| 112 | 00:20:04 --> 00:20:14 | process. And it's not easy. This is the hard part, the work of going through when it doesn't feel like you're ever going to get it. That's the normal process |
| 113 | 00:20:14 --> 00:20:27 | with anything that's technical. Anything worth having or knowing is always going to come with a great deal of hardship and adversities. But it's worth it, folks, |
| 114 | 00:20:27 --> 00:20:36 | it really is worth it. And times are about to get really, really difficult. And if you can find yourself in a position where you can at least make half of what |
| 115 | 00:20:36 --> 00:20:45 | you normally make it your job, if not replace the entire income, that is going to be a blessing. But you don't want to put all of your expectations on one |
| 116 | 00:20:45 --> 00:20:54 | individual thing that I taught you like a fair by a gap or an order block or an optimal trade entry, or institutional order for entry drill, you're hopefully |
| 117 | 00:20:54 --> 00:21:02 | doing the work behind the scenes, and looking for this overall price structure here. But focusing on the buy side of the curve when it's a market maker sell |
| 118 | 00:21:02 --> 00:21:12 | model, and it should have gone down to these levels here to go higher. Anyway, that's narrative. Now when it's going down, digging deeper, it creates a short |
| 119 | 00:21:12 --> 00:21:18 | term low starts to rally so that way what retail want to buy, there's a little bit lower stops, there's individuals out and then starts to do it one more time. |
| 120 | 00:21:18 --> 00:21:24 | And they think, okay, I was wrong, I was a little premature, let me go and buy it again. And they put their stop loss right below here, and they run out again, |
| 121 | 00:21:24 --> 00:21:32 | then goes into the level that we would be expecting. This could be larger, higher timeframe, fair value gap, it could be an order block, it could be a |
| 122 | 00:21:32 --> 00:21:46 | breaker, okay, or it could be just simply an old high being returned back into. And those ideas are going to be linked to your unique model. There's, like I |
| 123 | 00:21:46 --> 00:21:55 | said, there's tons and tons of trade ideas and opportunities each month and tweak in several of them intraday. And even though you're all learning these |
| 124 | 00:21:55 --> 00:22:05 | concepts collectively, as a community, you're gonna be hard pressed to find, you know, a dozen traders doing the same thing at the same entry price, same stock |
| 125 | 00:22:05 --> 00:22:16 | level, same target, because they're bringing in their individual personality. But these things I'm showing you, these are the blueprints, these are the |
| 126 | 00:22:16 --> 00:22:25 | framework in which you look for the setups and justify why you're doing and anticipating price doing a specific thing. And it doesn't fit this criteria |
| 127 | 00:22:25 --> 00:22:38 | here. Then chances are you probably are doing something that's forced, or it's simply not in the market. And if the market starts to move from the level we |
| 128 | 00:22:38 --> 00:22:49 | expect down here, and we expect it to run up here as a target about the original consolidation. If that's the case, and we have one price run up above 50% of |
| 129 | 00:22:49 --> 00:22:59 | that range between the high and the low here, and it starts to retrace, then I'm thinking wrong, I have one stage of accumulation. So I can't do any pyramid in |
| 130 | 00:22:59 --> 00:23:08 | here. But if I have one here, and it goes about halfway or a little bit less than pulls back down in, then I know I have a chance to pyramid. So I can do |
| 131 | 00:23:08 --> 00:23:20 | along here, say maybe 10 contracts of the s&p, then I can do five here. And if it gives me some kind of little institutional differential here, wait for it |
| 132 | 00:23:20 --> 00:23:30 | runs out the highs. And I think it's going to be moving higher, not just here, then I could add another two contracts. So it'd be 10, five and two, or 10, five |
| 133 | 00:23:30 --> 00:23:41 | and three. Something to that effect, okay. And that's pretty much what I'm doing. Like I'm going through the process of looking for this structure in |
| 134 | 00:23:41 --> 00:23:51 | price. That meets in in agrees with the narrative I'm expecting for price for that particular session or a particular day, or that particular week. Okay, |
| 135 | 00:23:51 --> 00:24:00 | because these profiles, these market maker buy models and sell models, they're not limited to any one particular timeframe. But the logic behind them and when |
| 136 | 00:24:00 --> 00:24:11 | you're looking for specific things of accumulation or distribution, they have to meet what I explained and it's not Wycoff, okay, is very specific elements that |
| 137 | 00:24:11 --> 00:24:16 | have to balance themselves out based on what side of the curve price is on. |
| 138 | 00:24:19 --> 00:24:31 | Right in the s&p. Again, same thing this morning. This is a chart I shared on my Twitter feed beforehand. I mentioned that we would see the stops here taken. And |
| 139 | 00:24:32 --> 00:24:44 | once it was cleared out, we would expect price to and I would rather expect to see price trade above the 4143 and a half. So my side resting over here. If you |
| 140 | 00:24:44 --> 00:24:53 | look at the first example shown in this fabric discussion, this was the first stage of accumulation, second stage accumulation and then it hits the premium |
| 141 | 00:24:53 --> 00:25:00 | array. Okay, which is the old high back here and we're just about the gray line here. That's what it's doing. Now this becomes an area of bicep liquidity. After |
| 142 | 00:25:00 --> 00:25:15 | the market breaks down, notice there is no real retracements for first stage or second stage distribution. So, because of that, this decline down here was just |
| 143 | 00:25:15 --> 00:25:23 | them running out sell side. And then they gave one more instance where they created a low. Anybody who was long did not those individuals because he |
| 144 | 00:25:23 --> 00:25:33 | engineered liquidity, then it started the rally, we had a fair of a gap and here rallied fair value gap here, rallied, went back into the last fair value gap |
| 145 | 00:25:33 --> 00:25:49 | here and then dropped to an area of sell sign. What is this? What's this area here, that's an original consolidation that's below the buy side here. So when I |
| 146 | 00:25:49 --> 00:25:57 | was watching price, I'm looking at this as okay, this is a market maker by model. So I want to be buying on the buy side of the curve. And he's just got to |
| 147 | 00:25:57 --> 00:26:08 | turn around. So I'm we immediately I bought earlier here, and I had whether this, my stock was not touched, obviously, but is it dropped down, I could have |
| 148 | 00:26:08 --> 00:26:16 | easily had a losing trade. But the logic was still there, the market went down, cleared up that level again, and then got to this price point here and I tweeted |
| 149 | 00:26:16 --> 00:26:27 | this chart, I said, this is where I think it's gonna go. And there it is, we've now we're ready to go higher, because we've taken the sell side out. So smart |
| 150 | 00:26:27 --> 00:26:37 | money has accumulated down here, all the cell stops. Where do they want to get at above here where I took a partial and above here, where the boss illiquidity |
| 151 | 00:26:37 --> 00:26:50 | is. So in this little fractal here, I'm expecting a market maker vi model the form. So here is the woman chart. And we're looking at that same consolidation. |
| 152 | 00:26:51 --> 00:27:03 | And the old height I think, is going to be taken out on by side. And the market has this area of old distribution becomes a new level of accumulation over here. |
| 153 | 00:27:03 --> 00:27:16 | So here's the kicker, sell side of the curve here. To the right of it is the Buy Sell occur, Smart Money reversal, low risk by accumulation, re accumulation |
| 154 | 00:27:16 --> 00:27:27 | second stage, and then you see the extrapolate price run. So the buy side is targeted there. The original consolidation is here. So we have initial draw here |
| 155 | 00:27:27 --> 00:27:39 | and in here. First stage accumulation. Second Stage re accumulation, that swing low sets the stage for that dynamic price run all the energies there and the |
| 156 | 00:27:39 --> 00:27:50 | second one, and it runs us up into here. And here. And I basically outlined this whole thing with a simple discussion with what I expected on Twitter, without |
| 157 | 00:27:50 --> 00:28:02 | going through the mechanics of everything I'm showing you here. Now more specific, we can drop down to a 15 second chart which I had available to me. And |
| 158 | 00:28:02 --> 00:28:10 | I'm not going to share this obvious because I will be teaching mentorship on Twitter. And I'm not doing that. But here's the original consolidation, up close |
| 159 | 00:28:10 --> 00:28:19 | candle carried out through to device out the curve, you can see it drops down into that four second stage of accumulation, up close candles, here that through |
| 160 | 00:28:19 --> 00:28:28 | to by side of the curve, you see we went down into that and accumulated again. So we have first stage accumulation, it'd be a buyer there. The second stage |
| 161 | 00:28:28 --> 00:28:40 | accumulation, that's the one that has the most dynamic price run, and you can see it there. So everything that I'm teaching you, if you have the the idea of |
| 162 | 00:28:40 --> 00:28:49 | where the market is going to draw to, okay, which is why I always preach this all the time. This is the most important thing, it's not the entry points, okay? |
| 163 | 00:28:49 --> 00:28:58 | It's not, it's knowing where the market is going to go. Because if you can have that idea and be correct about it most times, and you're able to look for this |
| 164 | 00:28:58 --> 00:29:07 | pattern, you will be able to trade every timeframe, whether it's a 15 second chart, one minute chart, five minute chart, 15 minute chart, hourly chart, two |
| 165 | 00:29:07 --> 00:29:16 | hour chart for our chart, 90 minute chart, daily chart, weekly chart, monthly chart quarterly chart, you get what I'm saying? I'm being obnoxious now. But the |
| 166 | 00:29:16 --> 00:29:29 | point is, you're gonna be completely unshackled, you're gonna have no limits, none. And you'll be able to trade every timeframe in every fractal. Now that is |
| 167 | 00:29:29 --> 00:29:38 | not an invitation to go out there and drive and try to trade like a madman, okay. You have to have some kind of discipline. But knowing what you're looking |
| 168 | 00:29:38 --> 00:29:48 | for, and blending the things that you've been taught here. That is how you get the results. You can't just take one thing on the basis of just that one thing |
| 169 | 00:29:48 --> 00:29:59 | you have to have confidence is in the experience factor will grow as you do it more and more. And do not be afraid or discouraged if you get it wrong, because |
| 170 | 00:29:59 --> 00:30:09 | when you get it wrong if that's where you're learning, don't look at doing things wrong while you're developing as failure. That's where you learn. You |
| 171 | 00:30:09 --> 00:30:18 | have to understand that that's a moment for you to understand more than you did before you did that exercise or that paper trade or whatever it is you did that |
| 172 | 00:30:18 --> 00:30:29 | you can see it as a failure. When it's not failure, that's a growth, pain. And growing pains is part of all this stuff. Okay. So if you found this one |
| 173 | 00:30:29 --> 00:30:31 | insightful until I talk to you next time, be safe |