ICT Charter PAM 6 - Universal Trading Model
Last modified by Drunk Monkey on 2024-02-09 09:35
Outline
00:07 - Price action model and trading setups.
- ICT explains the universal trading model, focusing on buy-side liquidity draws and fractals.
- Identifying liquidity levels and price targets is key to successful trading.
03:19 - Identifying a range of opportunity for a potential buy.
- Trader anticipates run up in price or building of premium array above current level.
- Identify potential buy opportunities after an initial move higher, even if the beginnings of the move are unclear.
08:06 - Market analysis and trading strategies.
- ICT: Identify impulse leg up, retracement, and potential entry points for long or short trades.
- Hourly chart setup: London retracement followed by expansion into liquidity pool.
- Identify point one or two in the market maker sell model to find setups.
- ICT identifies buying opportunities in the market by looking for a bullish condition and anticipating when the market will move higher.
- Points of interest for buying include the equal highs or consolidation range, with the market maker sell model providing a potential model for liquidity.
15:45 - Trading strategies using price action analysis.
- ICT emphasizes the importance of understanding price action and using a top-down approach to trading, regardless of timeframe.
- ICT highlights the potential for long-term position trading when a weekly chart forms a bimodal pattern, with the expectation of reaching equal highs relative to the market maker.
- ICT analyzes long-term weekly chart of British pound vs. Dollar Index, identifying potential buying opportunities.
20:26 - Analyzing a cable chart using ICT and PDRA matrix.
- ICT market maker sells model on weekly chart, with potential for lower prices.
- ICT: price drops down, leads consolidation, Smart Money reversal, low risk entry (29:22)
- Price rallies, drops back into bullish order block, rejection candle signals potential for continued upside (30:00)
25:20 - Using fractals for market analysis.
- Trader anticipates rally in market, looks for low resistance liquidity runs.
- Market maker sell models identified in ICT chart.
- Identify trading opportunities by analyzing chart patterns and timeframes.
Transcription
| 1 | 00:00:07 --> 00:00:16 | ICT: Good hooks Welcome back. Right this is price action model number six universal trading model and we're gonna be specifically dealing with the buy |
| 2 | 00:00:16 --> 00:00:32 | side low resistance liquidity runs and fractals. Okay, for the stage Rumi looking for a liquidity draw is that there's going to be a buy side of the |
| 3 | 00:00:32 --> 00:00:39 | market maker profile. And pattern is going to be fair value |
| 4 | 00:00:45 --> 00:00:58 | okay, side by side, low resistance liquidity runs with fractals. Okay, the buy side expansion, the market maker sell model, we're gonna be focusing on that |
| 5 | 00:00:58 --> 00:01:07 | initially. So when the chart and is coming in any timeframe, but before I get into it, just let me preface it by saying that the things I'm gonna be |
| 6 | 00:01:07 --> 00:01:19 | discussing here are not new to you, okay, so we're not really doing the mentorship. What I'm trying to do is convey the ideas, how I go into the charts |
| 7 | 00:01:19 --> 00:01:29 | personally, and arrive at the setups that you guys see me do on a weekly basis. So when we do our weekly commentary, I'm highlighting the, the levels, which I'm |
| 8 | 00:01:29 --> 00:01:40 | interested in, or maybe a directional bias I want to focus on primarily. But the key levels are really what I want you to be studying, and then also go back in |
| 9 | 00:01:40 --> 00:01:51 | hindsight and look at what we've seen in post price action or after those levels had been traded to. And not only does it pan out, like we were anticipating |
| 10 | 00:01:51 --> 00:02:03 | relative to the commentary, or if it fails, but when it does pan out, what is it actually delivering in terms of price, okay, and I think what you're going to |
| 11 | 00:02:03 --> 00:02:17 | see here is really the core of which model it trade mostly, okay? Because I see when dealing with the mentorship and the things I share publicly. So when you |
| 12 | 00:02:17 --> 00:02:28 | understand this, it allows you to be a universal trader. And when I say universal, it doesn't mean you're day trading, scalp scalping and swing trading |
| 13 | 00:02:29 --> 00:02:39 | all the same time. I guess that would be a highest order of doing it. But what I mean by Universal is that you can find a setup. And I want to be very careful |
| 14 | 00:02:39 --> 00:02:50 | when I say this because I don't want you to feel that I'm inviting you to over trade okay or force the setup. But if the setup is there, you should be able to |
| 15 | 00:02:50 --> 00:03:01 | identify it and highlight in your price action. Okay. So, let me restart this. So when the chart again this is any timeframe presents us a bullish condition |
| 16 | 00:03:01 --> 00:03:14 | for a market, we have to understand when the market is poised to move higher, based on a draw on liquidity between the moment and price, we identify the |
| 17 | 00:03:14 --> 00:03:21 | liquidity the market will seek and the price level of the targeted liquidity. This is our range of opportunity. |
| 18 | 00:03:29 --> 00:03:42 | In this case, we have a level above us. Okay. And this is obviously with the benefit of hindsight in our crude depiction of price action here. But we are |
| 19 | 00:03:42 --> 00:03:50 | going to assume that we have some inkling that the market is going to want to trade up to that level. Now that level relative to whatever timeframe you're |
| 20 | 00:03:50 --> 00:04:02 | looking at could be a bearish order block it could be a run above a previous high it could be a liquidity void or fair value gap that needs to be filled in |
| 21 | 00:04:02 --> 00:04:14 | during a deeper retracement. Whatever that level is for premium array. It's going to be up to you to frame out okay, because obviously, you could be a |
| 22 | 00:04:14 --> 00:04:25 | scalper you can be a day trader, you could be a short term trader one shot one kill a swing trader or a long term position trader. All of those styles or |
| 23 | 00:04:25 --> 00:04:39 | methods of trading can be accomplished by this model. Okay, now, when I see this model, it's assuming again, like we do most of the models so far is I'm kind of |
| 24 | 00:04:39 --> 00:04:55 | giving you more of my personal opinions and in slant on the approaches themselves. With that, I'm going to kind of give you what I do on a week to week |
| 25 | 00:04:55 --> 00:05:08 | basis. And then if I don't see my weekly analysis pan out or I do see it panning out? What am I actually doing to work in a pattern or a setup? So with that |
| 26 | 00:05:08 --> 00:05:17 | assumption that we have a liquidity draw, okay above us in the form of a premium array, it doesn't matter what timeframe it is. Okay? So kind of like suspend |
| 27 | 00:05:17 --> 00:05:27 | that, that need to know that. Okay, because I know you're probably saying, Well, what timeframe? Is this, Michael? Okay, it's any timeframe, anything, any |
| 28 | 00:05:27 --> 00:05:36 | timeframe whatsoever, and I'll go into the charts and I'll show you some things with it obviously, once we go through the the theory of it, but the drawing |
| 29 | 00:05:36 --> 00:05:50 | liquidity is going to be above us. So we anticipating a run up in price or building in of a premium okay. And then the beginnings of the move may not be |
| 30 | 00:05:50 --> 00:06:01 | clear to you, okay, but hold that for right now. But beginning of the move generally will be some measure of bullishness. Now, it could be the end of a |
| 31 | 00:06:01 --> 00:06:14 | existing bullish trend, it may be a consolidation that finally breaks out or it could be an altogether reversal. Okay. It's not apparent we're needed to know |
| 32 | 00:06:14 --> 00:06:29 | that right now, what is looking for a point at which the market is going to build in a premium or rally up okay. That range of opportunity is seen here. So, |
| 33 | 00:06:29 --> 00:06:41 | when we first identify the range at which the market should build in a premium or trade higher in other words, in layman's terms, up to our predefined draw on |
| 34 | 00:06:41 --> 00:06:56 | liquidity, okay to a premium array. You may not see that initial buy at the large green arrow. But after an initial move higher your I should based on all |
| 35 | 00:06:56 --> 00:07:05 | the examples you've seen in the mentorship and through your own study of price action. You should be able to see this as a potential buy. So by point number |
| 36 | 00:07:05 --> 00:07:19 | one, that first retracement it may or may not come back to an area of the original consolidation. If it is allowing that. That first retracement could be |
| 37 | 00:07:19 --> 00:07:31 | retracement back into a fair value gap inside that first leg up. Or it could be an order block that it trades down into you have to use your PDA array matrix. |
| 38 | 00:07:32 --> 00:07:45 | But that by should be the one that you're able to see initially, even if you don't catch the initial beginnings of the upside move. An obviously there's |
| 39 | 00:07:45 --> 00:08:00 | always likelihood though a secondary retracement allows for more buying or a buying entry that you have missed on the previous two instances with an |
| 40 | 00:08:00 --> 00:08:17 | expectation that runs up into that liquidity. If this were a daily chart, this could be the setup that takes place over one or two days. Okay, so these |
| 41 | 00:08:17 --> 00:08:28 | impulses from point number one up to the high between point number one and two that may meet one or two days to transpire. And then we have a retracement of |
| 42 | 00:08:28 --> 00:08:41 | one day and then the weekly expansion continues. And we get the high the week as it reaches in that liquidity pool. Here if this were a daily chart from an |
| 43 | 00:08:41 --> 00:08:53 | intraday perspective, rather than I would say it's a 15 minute timeframe. This could be an Asian range, falls break lower in the market rallies up rallies up |
| 44 | 00:08:53 --> 00:09:05 | again in New York and has a market reversal in the New York session or London closed session, and then the day reverses and trades lower. If this were a |
| 45 | 00:09:05 --> 00:09:16 | weekly chart, okay, we could have a long term consolidation that sees a impulse leg moves higher in the market trades for several weeks higher and retraces back |
| 46 | 00:09:16 --> 00:09:29 | down that point number one would become a an ideal scenario for long term position entry for a swing trade. If you missed the one point and it starts to |
| 47 | 00:09:29 --> 00:09:39 | rally up and again this is a weekly chart, the retracement back to point two which would be a discount array. Okay relative to the the range that would be |
| 48 | 00:09:39 --> 00:09:48 | created. Looking at the price action again, this is a very crude depiction. It's only a little line drawing I made in my computer just to communicate the the |
| 49 | 00:09:48 --> 00:10:00 | idea or theory. But that point of number two could be again another area of which you could do a position trade or a swing trade now doesn't mean you can't |
| 50 | 00:10:00 --> 00:10:09 | take day trades at that same price point, because they'll overlap obviously, when the price wants to move higher with magnitude and energy, either point one |
| 51 | 00:10:09 --> 00:10:21 | or two or the original move that begins that whole price leg up at that green arrow. Either one of those three price points is a good buying opportunity. In |
| 52 | 00:10:21 --> 00:10:34 | theory, I'm just being realistic in describing that you may not see the initial one, but that initial impulse leg once that first retracement occurs, you should |
| 53 | 00:10:34 --> 00:10:42 | be really eyeballing it, it should be should be able to see at least after the mentorship, you should be able to see those types of setups. If this is a hourly |
| 54 | 00:10:42 --> 00:10:57 | chart, okay, say it's an hourly chart. And we had the impulse leg up in a retracement down to point one. That could be the London setup. Okay, and then we |
| 55 | 00:10:57 --> 00:11:09 | see the expansion that goes up into the point our high between number one and number two low. And that retracement that point number two may be London close, |
| 56 | 00:11:09 --> 00:11:18 | where it sees a continuation further into today and trades up into our liquidity pool. Okay, so the things that you've learned in the mentorship, they're |
| 57 | 00:11:18 --> 00:11:28 | applicable to this model. But you have to apply the things and characteristics that I taught for each respective model or style of trading throughout the |
| 58 | 00:11:28 --> 00:11:39 | mentorship. Now, when the chart offers this condition, the initial consolidation or base of the market maker sell model may not be easy to spot as I mentioned |
| 59 | 00:11:39 --> 00:11:49 | earlier, however, after the initial impulse swing higher forms, is generally going to be easier for you to locate the next draw on liquidity. In other words, |
| 60 | 00:11:49 --> 00:11:57 | you can see it after it starts in June. This is generally when you see like the optimal trade setting up it's Oh, that's what it's trying to do. Let me see if |
| 61 | 00:11:57 --> 00:12:06 | it's going to reach up to that old high or bearish order block. And then you have as gelling with how most of my students see the setups, they don't really |
| 62 | 00:12:06 --> 00:12:17 | always see the initial reversal or break from consolidation, they always see the impulse leg and they see the optimal trade entry. So if that's a that's what |
| 63 | 00:12:17 --> 00:12:26 | you're finding yourself doing, that's okay, don't feel you'd have to have that initial impulse leg or or anticipating that is not necessary. Okay, over years |
| 64 | 00:12:26 --> 00:12:35 | and years of experience, you'll start to build in anticipatory skills that will help you see that. But really, what I want to focus on is that you only need |
| 65 | 00:12:35 --> 00:12:45 | point one or two in this model, to be able to find the setups, okay, and just finding on the specific timeframe that you're looking at, what timeframe is that |
| 66 | 00:12:45 --> 00:12:51 | whatever you're comfortable trading, you know, if you're a position trader, we're going to do a really thorough top down analysis, you're gonna be working |
| 67 | 00:12:51 --> 00:13:01 | from a monthly or weekly, daily, four hour, 60 minute 15 minute five minute chart, you're going to do these types of things and look through all your |
| 68 | 00:13:01 --> 00:13:12 | timeframes to find a potential setup. Now, by doing this, this will aid in determining the market maker sell model Smart Money reversal, okay, or the high |
| 69 | 00:13:12 --> 00:13:22 | here and where each generic level of accumulation of Long's will form. In other words, buying opportunities for us until the liquidity is absorbed at the high. |
| 70 | 00:13:24 --> 00:13:34 | Okay, the buy side expansion on the market maker by model. Now, when the chart again, any timeframe presents us with a bullish condition for the market. Again, |
| 71 | 00:13:34 --> 00:13:44 | we have to anticipate and understand when the market is poised to move higher. Based on a drawl and liquidity between the moment and price we identify the |
| 72 | 00:13:44 --> 00:13:53 | liquidity the market will seek and the price level of the target of liquidity. This is our range of opportunity. In this case, we've seen a market in |
| 73 | 00:13:53 --> 00:14:04 | consolidation, it broke down. We didn't see any of that it just caught us off guard, but we see it trade down to a logical level of support or to a discount |
| 74 | 00:14:04 --> 00:14:19 | array. Market Shares are willing to want to be bullish in this in this instance. At this price point here, we would anticipate a rally from that point to the |
| 75 | 00:14:19 --> 00:14:32 | equal highs or regional consolidation. That's this is our range of opportunity. Point number one is our initial point of buying interest. If we don't get to the |
| 76 | 00:14:32 --> 00:14:43 | smart money reversal, it's not necessary. It's not important. But point number one would be the area at which we would look to take our long entries. If we |
| 77 | 00:14:43 --> 00:14:52 | missed that, or if we want to add to a winning position. We can use point number two with the anticipation that we're going to run the equal highs for the |
| 78 | 00:14:52 --> 00:15:00 | liquidity resting above the original consolidation which is the market maker by model. Much like I said earlier, when we were low Looking at the market maker |
| 79 | 00:15:00 --> 00:15:14 | sell model with the MOT with the buy model rather against the same premise that any timeframe that we can see this forming, the main points that you have to |
| 80 | 00:15:14 --> 00:15:25 | have is a period of consolidation that leaves the area of equal highs. Okay, so we have that it could be equal highs, triple highs or consolidation range, any |
| 81 | 00:15:25 --> 00:15:37 | timeframe, if we see it break down, it trades to a very clear and obvious discount array. We anticipate this model unfolding. Now, I'm gonna show you some |
| 82 | 00:15:37 --> 00:15:47 | things in price action that we just recently did in the last couple of weeks with the Twitter feed and with the commentary. But it's important you know that, |
| 83 | 00:15:48 --> 00:15:57 | again, this is not limited to any one specific timeframe. If you understand the elements of what has been taught and mentorship and couple it with this model, |
| 84 | 00:15:58 --> 00:16:11 | it'll help you find and formulate a approach to trading any timeframe. So if you are, well, I guess, flexible to degree that you're not limiting yourself to any |
| 85 | 00:16:11 --> 00:16:21 | one particular style. But you're comfortable and fluid with the understanding of price action, you can do a thorough top down analysis. And if you get to a point |
| 86 | 00:16:21 --> 00:16:30 | in that top down analysis that you see this type of formation. That's your beginnings of understanding what you should be working in what style at the |
| 87 | 00:16:30 --> 00:16:39 | moment, because obviously, any given moment, you can't be a long term trader, okay, it's let's be fair about it. You can't be a swing trader at any given |
| 88 | 00:16:39 --> 00:16:49 | moment either, you know, there has to be a condition and underlying premise in the marketplace to facilitate that style or approach to trading. Obviously, |
| 89 | 00:16:49 --> 00:16:57 | every single day, you can be a scalper to some degree doesn't mean you can be profitable, but you can find or justify a reason to do something every single |
| 90 | 00:16:57 --> 00:17:08 | day as a scalper a day trader, the same thing. Not always the case like it is with scalping. But for day trade capturing the daily range. Just about every |
| 91 | 00:17:08 --> 00:17:22 | day, it offers that obviously, you know, that's Tuesday, Wednesday and Thursday. And there is a degree of patience that's required, if we're going to be a swing |
| 92 | 00:17:22 --> 00:17:31 | trigger. Okay, so if we see this type of formation on say, a daily chart, that would be a really good scenario to be a swing trader or short term trader, |
| 93 | 00:17:31 --> 00:17:40 | trading it point number one, point number two, with the expectation that we run those highs relative to the daily chart. This is a weekly chart, and it's |
| 94 | 00:17:40 --> 00:17:49 | forming just this pattern, we certainly could be a long term position trader at point number one or two. Okay, and allowing the market to trade up to the equal |
| 95 | 00:17:49 --> 00:17:59 | highs relative to our market maker bimodal. So let's go over to the charts. And I'll give you a couple examples. And I'll give you the mindset that I approach |
| 96 | 00:17:59 --> 00:18:09 | the market with each week to help me find the setups that you see me share with you weekly. And by way of Twitter. Give us we have the British pound versus the |
| 97 | 00:18:09 --> 00:18:21 | Dollar Index, rather long term timeframe weekly chart. Okay, obviously, I have everything mapped out already. And these dividers off. So you guys can see a |
| 98 | 00:18:21 --> 00:18:34 | little bit cleaner consolidation in here, okay. We may not have seen this original consolidation, until we saw this first impulse like, Okay, so right |
| 99 | 00:18:34 --> 00:18:41 | away, our mind should be thinking, well, this thing's probably going to be reaching higher. So what would it be reaching for? So if we scroll over to the |
| 100 | 00:18:41 --> 00:18:53 | left, you can see that we have the highest series of upclose candles here, not this one. Okay, because the bodies went higher on this one. And we're not |
| 101 | 00:18:53 --> 00:19:07 | trading supply and demand. So we do cut through candles. So we had our interest at the open on this at 143 46. or there abouts. Extending that out in time. We |
| 102 | 00:19:07 --> 00:19:18 | see the consolidation run and Paul's leg retreats back to it here. You pick up vi there, we have it down close candle. And then we have a retracement into this |
| 103 | 00:19:18 --> 00:19:28 | price point here, which is the bullish order block. Price point number one here on the weekly chart, this would be a buying opportunity, reaching up into that |
| 104 | 00:19:28 --> 00:19:39 | premium array or trades back down. Not trying to pick tops not trying to find long term reversals sticking with the idea. We see our market trade down again |
| 105 | 00:19:39 --> 00:19:52 | run a low looking for a potential opportunity to go long again, runs back up into and higher than the previous high that ultimately does reverse but this is |
| 106 | 00:19:52 --> 00:20:04 | the liquidity that we be aiming for trading back up into the order block. Now we also have this long void in here, the market would have wanted to seek to fill |
| 107 | 00:20:04 --> 00:20:17 | that. And obviously we saw that transpire. But once the market does break down them on the other side or the sell side of the curve on the models, once this |
| 108 | 00:20:17 --> 00:20:27 | low is broken, our model suggests that we're going to see a low come in the formation of a run below the original consolidation. So you can see a market |
| 109 | 00:20:27 --> 00:20:41 | maker sell model here on a weekly chart. You can see this as the reasons why we were looking for lower prices, and ultimately, a run below these equal lows, and |
| 110 | 00:20:41 --> 00:20:58 | our weekly commentary for months, throughout the bulk of this year, springtime to the present time, July 22 2018, we can see that there's been a willingness to |
| 111 | 00:20:58 --> 00:21:10 | want to trade lower in cable. Alright, we're gonna drop into a lower timeframe and give you a perspective on how this is useful as well. Can we have a cable |
| 112 | 00:21:10 --> 00:21:18 | chart, here's an hourly chart. And I want you to take a look at it for a minute before I pull it out, and start showing you the things that go through my mind. |
| 113 | 00:21:18 --> 00:21:34 | And what you saw transpire through the commentary last week going into the reversal at 2965. Again, these were tweeted on Twitter, before the facts of |
| 114 | 00:21:34 --> 00:21:46 | their reactions are not hindsight reflections, they're been shared with you beforehand, so that way we can participate in the act of study. But looking at |
| 115 | 00:21:46 --> 00:22:00 | price, we've seen price trading lower. And we had a long term daily bullish order block at 129 65. And you guys can go back through your charts and see that |
| 116 | 00:22:00 --> 00:22:16 | relative to the time of this recording, and where that resides. But this is the bullish order block on the daily at 2965. As it slammed into that level, our eye |
| 117 | 00:22:16 --> 00:22:30 | goes to this right here, clean level. And this has actually been tweeted on my Twitter feed on the 19th. Okay, so we saw this entire drop down. And I posted a |
| 118 | 00:22:30 --> 00:22:38 | chart with a question mark above here trying to draw your attention to what do you think this is? Obviously the first assumption is as well, it's clean highs |
| 119 | 00:22:38 --> 00:22:52 | are going to run that. But how many of you thought to include the aspects of a bullish ICT market maker by model equal highs. While that's a consolidation, |
| 120 | 00:22:52 --> 00:22:59 | right? price drops down leads the consolidation, Smart Money reversal, |
| 121 | 00:23:00 --> 00:23:11 | low risk by right here, trades right back down into your order block right there. So that's point number one, then we have another rally up and price drops |
| 122 | 00:23:11 --> 00:23:24 | back down in into what bullish order block. This is point number two, you could use this as point number two, or this is point number two, trading into a |
| 123 | 00:23:24 --> 00:23:38 | rejection block here, you can see the effects of using the pdra matrix and your personal, unique perspective, if you will, on price, we're all going to be |
| 124 | 00:23:38 --> 00:23:45 | looking at price slightly different regardless of what we trained our eyes to look for. You're going to be more comfortable, some of you would say okay, well, |
| 125 | 00:23:46 --> 00:23:56 | I see the order block here I see this big run up. But I want to see it trade down into the mean threshold here, right in here. Well, you may get this level |
| 126 | 00:23:56 --> 00:24:05 | you may not get this level, you may miss it. Price starts to rally again. You have a rejection block noted here. The bodies are very close to one another and |
| 127 | 00:24:05 --> 00:24:14 | are close to one another here and also overlaps with the opening of the down close candle which is a propulsion candle. Okay, so we're profiting candle which |
| 128 | 00:24:14 --> 00:24:23 | is another bullish order block that feeds into a previous order block. So when you have that you don't really want to see what the mean threshold according to |
| 129 | 00:24:23 --> 00:24:32 | the rules. So that market is most likely going to stay above the mean threshold in this regard. And you see that come to fruition here. Read your notes in the |
| 130 | 00:24:32 --> 00:24:42 | mentorship. So if that's the case, we wouldn't anticipate a very deep retracement in this order block we would look at the open or the high and get |
| 131 | 00:24:42 --> 00:24:51 | our feel based on that. And our stop would be below the propulsion candle or just below the mean threshold. Okay. So even in this little bit of a |
| 132 | 00:24:51 --> 00:25:05 | consolidation with the expectation that the larger bounce at 129 65 which is likely not promised Anyone would see a run up into the equal highs here. Price |
| 133 | 00:25:05 --> 00:25:15 | expands up runs the equal highs, take your profits, leave a little bit one. Because you don't know how much juice, you're going to get off of that 2965 |
| 134 | 00:25:15 --> 00:25:32 | level and train your eyes to zoom out a little bit. I'm not gonna go through the chart, but look at it again. Do you see it? Consolidation up here. The market |
| 135 | 00:25:32 --> 00:25:46 | drops down, distribution, redistribution. And I love them distribution, which, which was the model we just used for our market maker by model or profile. And |
| 136 | 00:25:46 --> 00:25:57 | it clears that level. Now the market trades back down into this level here, not for classical Support Resistance ideas, but we're looking for the area over here |
| 137 | 00:25:57 --> 00:26:08 | at which we saw buying when we saw buying in here. Okay, so I'm anticipating a willingness to want to see this rally again. Over time, how much time I don't |
| 138 | 00:26:08 --> 00:26:22 | know. I'd like to see it trade above here with weakness on $1. Okay, so that's how I internalize using the fractals, and I'm looking for low resistance |
| 139 | 00:26:22 --> 00:26:33 | liquidity runs by coupling that idea together. Okay, let's take a look at the dollar index. Obviously, we had the equal highs here. And we're looking for a |
| 140 | 00:26:33 --> 00:26:45 | run above that. And potential reversal to look for cells in the dollar index. Okay, if we go over to an hourly chart, okay, we can see those elements in this |
| 141 | 00:26:45 --> 00:27:03 | price action. 9565 was the high scene here. But look at the equal highs in here and see that let me zoom in. Alright, so we have equal highs. And here, we know |
| 142 | 00:27:03 --> 00:27:12 | what's going to be resting above that by stops. But look what's going on in here. We have a consolidation, market rallies up. What is it reaching for not |
| 143 | 00:27:12 --> 00:27:26 | only is it reaching for equal highs here, but it's reaching for that daily equal high. And we did our calculations based on model number five, the standard |
| 144 | 00:27:26 --> 00:27:40 | deviations for intraday volatility. And it led us to 9565 on this particular day. So we had the market maker sell model. Here, consolidation runs up into a |
| 145 | 00:27:40 --> 00:27:51 | premium, yes, it clears equal highs, but it's going to an area which on a daily chart would want to be swept, which was that 9555 That was calibrated from 9553, |
| 146 | 00:27:51 --> 00:28:06 | which is all daily highs in here. Okay, are we calibrated that in our amplified lessons for price action model number five that was shared with you just a few |
| 147 | 00:28:06 --> 00:28:17 | days ago. So by looking at that model, here, we're seeing the price built in as a premium, then we have a distribution or smart reversal rather, and then we |
| 148 | 00:28:17 --> 00:28:36 | have a low risk sell in price drops down, clearing out the equal lows, and that will complete one small fractal or ICT market maker sell model. Zoom out, we |
| 149 | 00:28:36 --> 00:28:49 | have it again. We had the consolidation in here, market rallies away, tries to come back into it rise again. Here you have accumulation, theory of |
| 150 | 00:28:49 --> 00:29:01 | accumulation, Smartline reversal distribution. Now watch is going on price comes all the way down does what clears out this consolidation. Okay, so we have |
| 151 | 00:29:01 --> 00:29:14 | another market maker sell model that's completed right here. So now what do we have? We have the likelihood of the market wanting to get up into this range in |
| 152 | 00:29:14 --> 00:29:25 | here. Okay, we have this down close candle. And we have this area over here of old accumulation. So there's an area of which that would be interesting to me at |
| 153 | 00:29:25 --> 00:29:39 | 9495 to 9480 in that area, because we have fair value gap in here. And that would create a balanced price range with this big drop down. So we had this open |
| 154 | 00:29:39 --> 00:29:55 | area, but in one single candle that was closed in so I'd like 9485 to 9495. Okay, so if price can muster some strength to get up into that area. I would |
| 155 | 00:29:55 --> 00:30:05 | think that'd be another area of distribution and we could see some more selling on the dollar index. Okay, that's how I just apply it to you real time with this |
| 156 | 00:30:05 --> 00:30:15 | chart so that way, if it comes to fruition, you know, why did if it doesn't, that's okay. We've had plenty examples where it does pan out. But I did it with |
| 157 | 00:30:15 --> 00:30:29 | Eli. If we look at the examples on price, even on smaller timeframes, like if we look at a 15 minute timeframe, here, we can see that original consolidation on |
| 158 | 00:30:29 --> 00:30:39 | the dollar index equal highs that run right up into that 9565 level. And then distribution comes in after the market structure break, trades right back up |
| 159 | 00:30:39 --> 00:30:53 | into what are the logical premium array, which is this up close candle. And we have this little bit of a fair value gap in here. trades up, heavy distribution |
| 160 | 00:30:53 --> 00:31:06 | comes in and boom, clears out the equal high, I'm sorry, equal lows and let drop in liquidity is gone. Okay. So if we have these understandings, and we're |
| 161 | 00:31:06 --> 00:31:15 | looking at our specific timeframes, and we see the patterns, okay, go back through the mentorship and look at the classifications for the timeframes. What |
| 162 | 00:31:15 --> 00:31:24 | style of trading does that equate to, and it helps you form that length of duration that you're holding for and helps you stick to the mindset instead of |
| 163 | 00:31:24 --> 00:31:32 | going in and saying I'm going to be a swing trader, and in getting shook out of position because of something you saw intraday, that would be a wonderful area |
| 164 | 00:31:32 --> 00:31:41 | to take position exits at on a scalp or a day trade. But you don't want to give up the entire position because you're trading off of a larger term, longer term |
| 165 | 00:31:41 --> 00:31:53 | rather setup that would be formed on a swing trade or short term trade basis. So if we found this model insightful, it's not specific, and I build more on this |
| 166 | 00:31:53 --> 00:32:01 | when we go into the sell side for the second part of this until next time, I wish you good luck and good trading |