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ICT YT - 2017-10-12 - Pattern Recognition - Selecting Precision Price Objectives.srt

Last modified by Drunk Monkey on 2022-12-22 08:34
1 00:01:11,790 --> 00:01:23,340 ICT: Good morning, folks, just take a look at this disclaimer, it's important reminding you that what I'm saying is just my opinion, don't believe what I say.
2 00:01:34,019 --> 00:01:47,939 Okay, we are looking at the Australian dollar. And on the left hand side is a daily chart. And on the right hand side, it's the 15 minute timeframe. And a few
3 00:01:47,939 --> 00:02:04,859 days ago, I gave you a optimal trade entry, pattern recognition video for your learning, you guys can use that for your practicing seeing it, watching it
4 00:02:04,859 --> 00:02:14,519 quickly, very short span of time and price action. That way, you can see what the pattern looks like over and over and over again, only by doing that, or by
5 00:02:14,519 --> 00:02:23,789 making your own charts every day and putting them into like a journal screen capturing the chart, okay. And as soon as you think you see the optimal trade
6 00:02:23,789 --> 00:02:33,119 entry, screen, capture that and then watch it pan out. It may or may not be there, okay, but over time, your ability to be able to see it will improve. Now
7 00:02:33,149 --> 00:02:44,159 today I want to talk about selecting precision price objectives. In other words, where the price may go. Okay, so we've talked about how to get a daily bias real
8 00:02:44,159 --> 00:02:53,399 quick. I'll review that set later things kind of like, you know form as we go through each video is not a plethora of things to know. But there's a lot of
9 00:02:53,399 --> 00:03:03,959 things to learn. But for trading, practicing in your demo account, there are certain things that I think is beneficial to students of mine. Even if you don't
10 00:03:04,439 --> 00:03:15,029 really pursue everything that's in my curriculum or tutelage, I promise you, there's always something out of the 20 some plus years I've been doing this,
11 00:03:15,419 --> 00:03:23,729 invariably I find, even at seasoned traders, will send me feedback and say, hey, look, you know, that was really interesting, that's really filled in a gap in my
12 00:03:23,729 --> 00:03:32,789 understanding, or it's done wonders for my results. And that's great. I appreciate that feedback. But today, we're looking at the Australian dollar, and
13 00:03:32,789 --> 00:03:44,819 then I'll kind of recap with the British pound. So for teaching purposes, we're going to start off on the daily. Okay, and I want to bring your attention to
14 00:03:45,719 --> 00:03:56,729 this little candle right here. Okay. And the first thing we look at is, are we working off of a swing, swing high or swing low. Now, currently, if you look at
15 00:03:56,729 --> 00:04:05,819 this candle here, this one would probably throw up throw most of you off that aren't really simply looking at the pattern as a generic formula where it's a
16 00:04:05,819 --> 00:04:15,749 candle that has a higher low on either side of it. That's a swing low as it really is it relates to this one here, we have a low on this candle here. We
17 00:04:15,749 --> 00:04:25,289 have a lower low, then we have a higher low, skipping the candle right here. Why am I skipping that? Well, it's because it's a Sunday candle. Okay, so this
18 00:04:25,289 --> 00:04:33,479 candle here, kind of like this. disregarded, dismissed it don't think it's there at all. If you have a platform doesn't have Sunday candles, you are at an
19 00:04:33,509 --> 00:04:42,839 advantage because I'm teaching through a forex Ltd demo. So the price action you're seeing here is directly related to the fee they provide and admittedly
20 00:04:42,989 --> 00:04:54,359 the last couple of weeks. They've had some hiccups in their data. So take it for what it is. Okay, I just use it because it has $1 index and dollar index in my
21 00:04:54,359 --> 00:05:04,349 opinion is important when we do analysis but if we disregard this candle right here, we have the past Which is the swing low, we have a lower low here than the
22 00:05:04,379 --> 00:05:18,269 candle before and the candle after it. Okay? Once we have that our thought process is to look for price to want to target runs on liquidity above the
23 00:05:18,269 --> 00:05:29,999 previous day's high. It's just that simple. Okay? I'm not going to be teaching if the, which is the interbank price delivery algorithm. It's a unique thing in
24 00:05:29,999 --> 00:05:38,399 my repertoire, my curriculum, my teachings, it no one else talks about nine books or anything like that. And I'm not teaching you every facet to it, because
25 00:05:38,399 --> 00:05:45,719 that was in my mentorship stuff. So those folks are the only ones I'm gonna share it with me No, and I'm not teaching anymore, but I will give you a very
26 00:05:45,719 --> 00:05:55,379 simple approach, and a very foundational approach on how you can look for setups. And we've already done so by teaching this kind of rehashing it here. So
27 00:05:55,379 --> 00:06:00,479 that way, it's in one video, it's uniform. So you can see everything in one short little video.
28 00:06:01,740 --> 00:06:11,340 So we have a swing low. And then the expectation is is the algorithm that the price engines use for delivering price to all of our feeds. Now, there's going
29 00:06:11,340 --> 00:06:19,620 to be a slight skew in what price we see and what is actually on the interbank level. I'm not going to get into that, just understand that there's always going
30 00:06:19,620 --> 00:06:26,670 to be some slight variance between what you're using to trade with and what I'm showing, okay, everyone's broker is going to have a slightly different quote,
31 00:06:26,670 --> 00:06:33,960 high quote low. It goes along with the territory, you sign it in the risk disclosure saying that you are willing to work within those guidelines and it's
32 00:06:33,960 --> 00:06:43,230 legal, sorry, hate to say it, but you give them permission to do so. So the high we're gonna start targeting and looking for moves above the previous day's high
33 00:06:43,230 --> 00:06:53,340 so once this candle closes, we have a swing low. Okay, disregard this candle right here. Okay. Now the next day, we're gonna be looking for price to trade
34 00:06:53,340 --> 00:07:02,820 above this candle is high, it does so. Okay. Now the next day, we're going to look for the same phenomenon to take place we're going to look for the previous
35 00:07:02,820 --> 00:07:11,550 day's high to be traded through. Okay, we open. I'm not talking about power three today, I'm not doing anything like that. But we're looking for an eventual
36 00:07:11,550 --> 00:07:23,730 run above the previous day's high. This is foundational for directional bias for day trading. Now, I'm only focusing this project if you want to call it on day
37 00:07:23,730 --> 00:07:32,250 trading only I'm not teaching is swing trading. I'm not teaching you position trading like that. This is all just day trading information. You can see price
38 00:07:32,250 --> 00:07:41,670 runs through that. previous day's high. Okay, the same drove the next day. Nothing's changed. We're waiting to see a eventual run through the previous
39 00:07:41,670 --> 00:07:54,000 day's high. It does that. Now is it giving you the low of the day to get in? No, that's not its function. It's not its purpose. This concepts responsibility
40 00:07:54,000 --> 00:08:06,960 really is just to give you Where is price most likely not panacea not be all end all. Not an absolution most likely going to direction higher low. Well, we know
41 00:08:06,960 --> 00:08:14,310 we're refocusing on the market wanting to go above the previous day's high. So that gives us a directional bias on the day. Now there's going to be
42 00:08:14,310 --> 00:08:23,250 fluctuations intraday, and I'm sure 30 different scalpers out there will say, well, you had this wrong because I took 12 pips going short on this, that's,
43 00:08:23,280 --> 00:08:30,810 that's up to you to think that way. And I'm not going to try to say what you're doing is wrong. If it's working for you, great. I'm just sharing my
44 00:08:30,810 --> 00:08:39,330 internalization of what price action means to me. And I leave it all to you whether you think it's valuable or not. Okay, I really don't care to know, if
45 00:08:39,390 --> 00:08:46,890 you think what I'm doing is good or bad. I just want to know how you're using it. Okay, and give me that feedback. That's the only thing I care about. So
46 00:08:46,890 --> 00:08:56,460 we're going to use this information and translate that into what we see on the 15 minute timeframe on the Ozzy. Now, again, I'm going to refer you back to the
47 00:08:56,550 --> 00:09:06,330 optimal trade entry pattern recognition video. I did for Aussie dollar, it's in the title, so you can see it on my YouTube channel. But we talked about this
48 00:09:06,330 --> 00:09:21,360 high here and this low right here. Okay, this framework right here, this break in that range, this low to high once it was broken right here. Okay, once price
49 00:09:21,360 --> 00:09:34,470 traded to that point here, that gives us an inclination that maybe perhaps, the market may want to trade higher. If it does, then this phenomenon I just
50 00:09:34,470 --> 00:09:44,910 outlined on the daily chart should manifest itself in price action. If it doesn't, then there's no trade or you'll suffer a loss. There's nothing wrong
51 00:09:44,910 --> 00:09:53,880 with that. yesterday's show, there's no reason to be fearful of taking a loss. Your methods still going to work. If you have a sound method, and you just have
52 00:09:53,880 --> 00:10:02,640 to execute and keep risk small and don't let the demons of price action and trading and speculation Overcoming worry you don't let it scare you out to take
53 00:10:02,670 --> 00:10:17,760 the next trade, but don't over trade too. There's a lot of balancing act in it. So we're going to look at this high rate here, and we get this little trend line
54 00:10:17,760 --> 00:10:33,060 thing here. So when we see this right here, this gets us on the watch list of determining whether or not this whole effect is going to manifest itself. Okay,
55 00:10:33,060 --> 00:10:43,470 now we're looking for reasons to suspect the directional bias should start panning out for upward momentum, seeking liquidity above the previous day's
56 00:10:43,680 --> 00:10:55,350 trading high, or daily high. So we have the short term high broken, right here. So now what we want to do is apply our Fibonacci, not to Fibonacci is the answer
57 00:10:55,350 --> 00:11:02,310 to anything. But it helps as a crutch for new traders, to see areas of valuation.
58 00:11:05,400 --> 00:11:14,400 And I taught you to use the bodies of the candles, not the wicks, because that's where everyone's price action is going to be different. So I focus primarily on
59 00:11:14,640 --> 00:11:25,320 the bulk of the volume being inside the body of the candle. Okay, that's the reason why I'm choosing to do that. So we have this model here, okay, this whole
60 00:11:25,320 --> 00:11:35,100 framework of price swing, this is an impulse price swing, or impulse price leg interchangeable terms. When price trades back down to the 62% retracement level,
61 00:11:35,550 --> 00:11:48,180 70.5 level, or 79% level, that gives us an area to anticipate potential buying opportunities. So we have buys down here likely to form and obviously you have
62 00:11:48,180 --> 00:11:56,880 the benefit of hindsight here. But we have targets of target one, we have the old high, which is your first scale out. This is where you take your first
63 00:11:56,880 --> 00:12:09,600 scaling and adjust your stop to reduce risk. Then here's your next target here, target one didn't target two, and then it's a symmetrical price swing. Okay. As
64 00:12:09,600 --> 00:12:20,520 price unfolds, reaching for previous day's high and the seeking liquidity above each respective previous day's high, each time it does that you need to be
65 00:12:20,520 --> 00:12:30,270 looking to take profits, because at some point, this whole dynamic over here on the daily could potentially change. So you always have to be mindful of, for
66 00:12:30,270 --> 00:12:39,750 instance, if we have a day, for instance, tomorrow, say we have a day that creates a lower high. Well, that changes the whole directional bias now, doesn't
67 00:12:39,750 --> 00:12:48,390 it, we would switch gears and start looking for reasons to see a run on the previous day's low for the liquidity resting below that. So it gives us a
68 00:12:48,390 --> 00:12:55,470 framework at some point, we are potentially going to be wrong. Like anything else in trading, you're going to have a losing trade, you're going to have a
69 00:12:55,470 --> 00:13:04,530 series of losing trades. And you can't fight that. If you try to do that it's going to mess you up. This simply follow the rules, be willing to take a loss
70 00:13:04,530 --> 00:13:12,090 because the loss will give you insight, it just means you're paying a premium for that valuable information. Something has changed internally. Especially if
71 00:13:12,090 --> 00:13:19,980 you see a day that has a lower high. Now you have a swing high. And then you'd look for reasons to start looking for price breaking down below the previous
72 00:13:19,980 --> 00:13:28,110 day's low. Now if it doesn't do that, after the formation of the daily swing high, then we may be consolidating or it could be just a retracement to go
73 00:13:28,110 --> 00:13:36,270 higher again. And once we take out the swing high it formed, its high. And everything resumes back in this model where we start looking for runs on
74 00:13:36,270 --> 00:13:48,900 previous day's highs or old highs, which would be the case over here. Okay, real simple way of approaching building daily bias. It's it closest thing I can give
75 00:13:48,900 --> 00:13:57,660 you that can be written on the back of a business card that is so good. It blows the doors off of most retail stuff. Okay, cuz it gives you a real quick way of
76 00:13:57,660 --> 00:14:04,950 internalizing from an institutional standpoint where liquidity is and how this how to determine what side of the marketplace it's going to target. Alright, so
77 00:14:04,950 --> 00:14:17,430 now I'm going to maximize this chart over here. Okay, and you can see this is the chart that we shared on that video. And we've just fallen short of target to
78 00:14:17,970 --> 00:14:28,260 over here and started having a deep retracement. It does not mean that the model on the daily chart when it does this, that the daily model or what we're looking
79 00:14:28,260 --> 00:14:38,700 for for daily bias going higher. This doesn't change that. Okay, what we had is we had a consolidation rally up target to didn't get hit no problem. We have a
80 00:14:38,910 --> 00:14:54,330 retracement and it sells off again. I want you to look at this portion of price action right in here. If we're bullish, as we were indicating on the daily
81 00:14:54,330 --> 00:15:15,660 chart, change the color this rectangle and see If we have, let's go with this. And it's not like that's a good background. Alright, so inside this whole
82 00:15:15,660 --> 00:15:26,910 consolidation, we had one run above these highs, got people trapped, chasing long zone breakouts. Okay, now we're trading if you've watched technical
83 00:15:26,910 --> 00:15:36,060 analysis, videos on YouTube or read books, they'll teach us as a bull flag, it rallies up consolidates starts to run higher, it's probably going to do the same
84 00:15:36,060 --> 00:15:44,460 move from this low, up to the high added to the low and projected up, they got burned there. Okay, that's why I'm not a real big fan of traditional
85 00:15:44,760 --> 00:15:52,620 technical analysis, because they're used many times to manipulate the thought processes or build sentiment many times is the incorrect perception of what
86 00:15:52,620 --> 00:16:01,920 price is most likely going to do. So we have a consolidation, we have a false move here or break above old highs, they sell off of that, and they run back
87 00:16:01,920 --> 00:16:11,520 down below what side of the marketplace below the consolidation lows. That's right here. Now, if we have the understanding, or expectation that the daily
88 00:16:11,520 --> 00:16:21,390 chart is predisposed to move higher, each trading day looking for its respective previous day's high to be taken out, we have a bias, that means it's most likely
89 00:16:21,390 --> 00:16:33,270 going to go higher. So anytime we drop down, our thought process should be switching to Okay, it's probably going down to knock out week bulls or trip in
90 00:16:33,990 --> 00:16:42,570 rushing bears, folks that want to get in on a break below these lows. Okay, if you look at indicators in here, and I'll just throw one up here, just for the
91 00:16:43,170 --> 00:16:53,310 amusement of it, from using these highs to this high here, momentum indicators, this is really big on Facebook and folks that use that kind of stuff, to
92 00:16:53,310 --> 00:17:04,740 convince their spectators that they have a bead on what price is doing, you're gonna see a divergence in here. And what is used as a good setup. All right, we
93 00:17:04,740 --> 00:17:19,530 have here and higher here is slightly lower high here. But even on this run to this candle failure. If we use a percent, it's slightly different. Let's do this
94 00:17:21,840 --> 00:17:36,690 14% I'm sorry, 14 k period, and will smooth with that's that's good. But that anytime price comes down below old lows. If you want to use a momentum indicator
95 00:17:36,720 --> 00:17:45,930 that means like stochastic I like stochastic RSI I can't stand it. MACD is so smooth, unless you're using it for long, long, long term position trading. I
96 00:17:45,930 --> 00:17:56,130 don't think it's beneficial either unless you use the histogram. And again, I'm not trying to teach indicators. But I would be very safe in betting that the new
97 00:17:56,130 --> 00:18:05,550 crowd that has just started following me uses things like this on our charts, okay, and then looking for overbought, oversold. If you blend what I'm going to
98 00:18:05,550 --> 00:18:13,140 show you here, you're going to see that the indicators work then. And that's the times when we see them in textbooks, when they work in a it's favorable to have
99 00:18:13,140 --> 00:18:20,220 been a follower of that perception. That's what tricks people. That's what tricked me when I first started trading, but it doesn't give you the context of
100 00:18:20,220 --> 00:18:27,660 when to use the indicator. And they'll they'll tell you when the moving averages are going up. It's a bull market. So there look for the bullish divergence.
101 00:18:27,930 --> 00:18:38,610 Well, sometimes that works, sometimes it doesn't. So if we know what we're looking for in terms of how the market will reach for liquidity, as I defined on
102 00:18:38,610 --> 00:18:47,310 a daily chart, we know that that's what we should be focusing on any other retracements of any kind, until it changes the tune or storyline, it's on a
103 00:18:47,310 --> 00:18:57,330 daily chart. Everything going down on the lower timeframes is simply new buying opportunities. It's going down the screw up the mindsets of those individuals
104 00:18:57,330 --> 00:19:06,120 watching one in five minute charts, because if they see moves like this, they're gonna think right away, it's going lower. So therefore be short. And traders
105 00:19:06,120 --> 00:19:14,790 that want a lot of confirmation behind their ideas. They will have cell stops triggered right below here because they don't trust what what's going on. They
106 00:19:14,790 --> 00:19:24,750 just want to follow the rushing tide. So if price starts to break down as it does below here, they're short. Well, they see a momentary profitability. I'll
107 00:19:24,750 --> 00:19:31,350 say it like that, quote unquote. But right away, it's taken away from them and snatched and drunk against them
108 00:19:31,590 --> 00:19:42,870 in another direction. This whole move here was not by coincidence, it's not by you randomness and it also comes by way of a bullish divergence. There's where
109 00:19:42,870 --> 00:19:53,190 your bullish divergence works. In momentum indicators were extremely oversold, and we're below old lows. Okay, so what I'm actually giving you is a perception
110 00:19:53,220 --> 00:20:05,760 on where price will go to a point to take out long holders Nothing if they were lucky enough to buy over here, they've held through this whole period of time.
111 00:20:06,120 --> 00:20:15,000 And they watched it drop down to right where their stop loss would have been because the textbooks teach. This is a double bottom. So as price ran up, where
112 00:20:15,000 --> 00:20:25,950 would they place their stop loss on their long position, right below there. So when we see drops, or declines against the higher timeframe daily chart that is
113 00:20:26,190 --> 00:20:35,610 giving us clues that it's most likely going to go higher than the previous day's high. Anytime we drop down below old lows, that's most likely a stop run. And
114 00:20:35,610 --> 00:20:45,210 you can anticipate that and if you haven't taken a position yet, you can buy just on the basis of that alone. So I'm giving you a little bit of blending on
115 00:20:45,210 --> 00:20:56,370 how you can use the retail crutches that are available, but using the right concepts and in time using proper context. So we're going to take this nonsense
116 00:20:56,370 --> 00:21:08,490 off. Okay, go right back to price action. So now we had this consolidation, false run above and then make a run on long holders. Notice how after they've
117 00:21:08,490 --> 00:21:18,240 taken the stop losses away, and out of the hands of the long holders that were maybe from over here, maybe someone got lucky and bought it down here? I don't
118 00:21:18,240 --> 00:21:25,440 know. I don't care to know. All I know is is when it has equal lows like this and the market is predisposed to go higher. That's going to be what I call
119 00:21:25,440 --> 00:21:34,950 Candyland. Okay, they're going to go down here and take those stops away from them. Imagine you want to get somewhere. Okay, and the bus is full. But your big
120 00:21:34,950 --> 00:21:42,990 strong guy, okay, you're a bully. You can go on that bus, snatch my other seat, throw them onto the street and then take their seat over? Well, that's what the
121 00:21:42,990 --> 00:21:52,350 market makers do. You had your seat on the bus, you've been getting closer to your destination, you get real close to the destination, Oh, we got a detour
122 00:21:52,440 --> 00:21:59,370 can't go any further. Okay, we come back down here, when we get to this point here, start to go a little bit higher, you feel you're getting somewhere. Now we
123 00:21:59,370 --> 00:22:06,150 go another detour in the bad section of the neighborhood. Okay, and the guy comes in, knocks off the bus and takes your seat and then ultimately goes where
124 00:22:06,150 --> 00:22:13,680 you want to go, ultimately, but you can't get there. So you've given up profit, and you've given up your seat on the bus and you never got to the destination
125 00:22:13,680 --> 00:22:22,380 you were intended to go. So that's the storyline I teach kind of like what my kids that make it palatable. So you can see it a little bit in price because
126 00:22:22,680 --> 00:22:30,570 looking at it like this, it's abstract. But when you apply things to understand why the price is doing it, the mechanics behind it, that's what it is. Okay,
127 00:22:30,960 --> 00:22:46,200 now, if we see these things happening, okay, I given you the body to body measurements for fit, and the targets being first profit, scaling, target one,
128 00:22:46,380 --> 00:22:58,050 target two, and symmetrical price swing. Okay, I'm going to apply a little bit more information to save some time, but that did a little bit more jawboning
129 00:22:58,050 --> 00:23:14,910 today than I wanted to. And I want to go back out to that same information just with all of the kill zones and such applied. So now we're gonna go back in and
130 00:23:14,910 --> 00:23:18,420 apply the fib real quick, doesn't take long to do it.
131 00:23:31,290 --> 00:23:50,370 Well, Michael, here we are. You fix this real quick while I'm thinking about it, all right. So in the bodies, low and up to the body here. Okay, so we have that
132 00:23:50,370 --> 00:24:04,260 same reference point. Target to failed here didn't get to it just fell short retraced and we have symmetrical price swing. If I add our little arrow things
133 00:24:04,260 --> 00:24:05,730 that mt four provides us
134 00:24:12,840 --> 00:24:29,430 I can quickly add where the price objectives would be. At first scaling was 7782 first target 7794 target two and symmetrical price swing, okay or measured move.
135 00:24:31,530 --> 00:24:40,440 That's based on these entries here. Now in here, this whole portion of that consolidation and a false break again, internalize that shaded area head on the
136 00:24:40,440 --> 00:24:52,740 chart just had previously before changing to this perspective. And we're gonna watch this decline here. This drop down from this high What is it retracing from
137 00:24:52,740 --> 00:25:10,980 what's the what's the beginning of the price move? Is it here? Hear here. It's here. Why am I going to use this low? I get this all the time. Why am I going to
138 00:25:10,980 --> 00:25:20,850 put a Fibonacci on this low and not this one, and not this one, because this one has the most recent dynamic price action on the upside. So the bulk of the
139 00:25:20,850 --> 00:25:43,920 buying was right in here. So I'm going to use another fib and anchor it on the body. Right there. And I'm putting it on the body. High right there. Right
140 00:25:43,920 --> 00:25:54,030 there, that's the highest body portion of this leg. Now I'm not using this candle wick. I'm using this one here, that's the highest body. Okay, prior to
141 00:25:54,360 --> 00:26:04,410 this highbeam broken, otherwise, I would use this one. But look what happens. We have 62% retracement level right there. Okay, so we could expect price to drop
142 00:26:04,410 --> 00:26:15,780 down, which changes this range high when, when these highs are taken out right there. So you have to modify the range of your trading inside of so it's this
143 00:26:15,780 --> 00:26:27,240 low. Now not to this book of the volume or the candles high. Not the width we're using, we're using the body of the candle. So now we have to adjust it to this
144 00:26:27,300 --> 00:26:35,880 candles body, it's the highest one in the range. Now, this high to this low. What happens now, not much in terms of optimal trade entry, it just gives us a
145 00:26:36,060 --> 00:26:47,580 more refined area. It still has a buy at that same point, but it goes right to 70.5 which is the sweet spot on optimal trade entry. Price hits that during what
146 00:26:47,580 --> 00:27:03,330 time of day. what time of day is this? If I show it to you like that FOMC. That's an FOMC came out. Okay. So if we see this, we know that that big rush of
147 00:27:03,330 --> 00:27:15,120 an injection of volatility coming in by way of FOMC minutes, it can cause either continuation or reversal. In this case, we watched it drop down ahead of FOMC.
148 00:27:15,750 --> 00:27:23,940 And then when it came out, boom price continues on the path of what was already outlined earlier in the week by using the Fibonacci and using what I taught you
149 00:27:23,940 --> 00:27:35,100 for the daily chart when there's a swing low look for previous day's highs taken out. Now if that's the case, we should see other things lining up with targets.
150 00:27:35,130 --> 00:27:42,510 So I'm gonna scroll over just a little bit more. Okay, so now we have today's price action. So we already knew that this is a symmetrical price swing
151 00:27:42,540 --> 00:27:51,360 objective. And that was in video before the fact he showed you how to use the daily chart to determine what direction it was going in. These are static
152 00:27:51,360 --> 00:28:00,540 targets they didn't moved and dynamic. Okay, this one here had to be slightly dynamic because we had a break in this range. So to create a larger price range
153 00:28:00,540 --> 00:28:09,150 to trade inside out so this low to this high trading inside the range my concept down here small, small little retracement back down into an area where we would
154 00:28:09,150 --> 00:28:21,660 expect to see buying. Okay, so now if that's the case, should we be looking for these objectives from this original buy to come to fruition? Yes, because they
155 00:28:21,660 --> 00:28:32,580 were not realized. When they first started to move higher. It never reached it yet. So they're open ended targets they stay in price action. So we can do this.
156 00:28:36,780 --> 00:28:52,140 extend that out in time. Bang, it's did a beautifully the target to level right there. It's it last night before midnight, New York time. Okay. And then
157 00:28:52,140 --> 00:29:04,530 obviously you guys can see target one first Prophet was hit new problem. Now I'm going to show you a blending with the Fibonacci. Okay, and I'm gonna take this
158 00:29:04,530 --> 00:29:11,850 fit off. And I want you to look at this price move right here. See that price like
159 00:29:13,170 --> 00:29:24,960 we're gonna measure that one, and we're going to measure this one because we have an impulse leg and we have a parent impulse leg. That means this high to
160 00:29:24,960 --> 00:29:34,530 this low is to the parent price swing, but there are subordinate price swings inside that larger move. In other words, an example would be since this move
161 00:29:34,530 --> 00:29:44,490 from here to here is the most dominant price leg. Every price like can be broken down into smaller price legs or fractals. So if the retracement is the fractal
162 00:29:44,490 --> 00:29:54,930 we're going to define okay inside that retracement there's going to be smaller retracements of a lesser degree. This high down to this low is another smaller
163 00:29:55,080 --> 00:30:03,600 move of that. This high to that low is another micro price range. This is a mic For a price range from this high to this low, here's another one this high to
164 00:30:03,600 --> 00:30:13,200 this low, and how they nest out, builds market structure as you'll learn in my tutorials. But for now, I want you to take a look at what we get when we use the
165 00:30:13,200 --> 00:30:31,890 Fibonacci, not changing anything low on the bodies up to the body's high right here. Okay, symmetrical price swing, there's your target. For more of a higher
166 00:30:31,890 --> 00:30:42,540 objective, with more refinement and precision, we use the parent price swing, as I just outlined, the low based on the bodies, the high based on the bodies,
167 00:30:43,200 --> 00:30:54,810 smack dab on it, you can't get any cleaner than that range right there. So it's target two, if we break this, we will be looking for 7845 as the next upside
168 00:30:54,810 --> 00:31:05,280 objective. But right now, that is beautiful. It's a beautiful example of precision objectives using the fib using the directional bias. And it also
169 00:31:05,640 --> 00:31:18,090 overlaps very handsomely with the 7828. That was already arrived that way back here on the sixth of October. That was really confirmed, but the response on
170 00:31:18,090 --> 00:31:27,570 optimal trade entry here. And prices moving up like that, we know that these objectives were most likely going to be in play potentially there, it doesn't
171 00:31:27,570 --> 00:31:36,840 mean it's going to stop can't go any higher than 7828 just means that these are reasonable price objectives. And as price moves up into that you want to be
172 00:31:36,840 --> 00:31:44,100 taking profits. Because you don't know if either one of these are going to cause a situation like this, where we have a deeper retracement where they come back
173 00:31:44,100 --> 00:31:54,210 down to take out long holders to unseat their position and take that position over so they can write to the profitable objective. But that this is one element
174 00:31:54,210 --> 00:32:05,790 and how I use for my targeting. Now, admittedly, in my mentorship knows this as well, because I preach it. If this is the objective I'm looking for, ultimately,
175 00:32:05,820 --> 00:32:18,060 or 78. I'm not Yes, 7828. I'm not holding for that. Now, I'll tell people that that's where it's going to go. And two new traders, they hone in on just that.
176 00:32:18,330 --> 00:32:28,650 And they don't pay attention to the trade examples I show where I'm clearly getting out 15 and 20 pips before that now to the pundants. And people that are
177 00:32:28,650 --> 00:32:36,300 just really not interested in learning, they just want to be detractors. They'll say he doesn't follow his method. He doesn't practice what he preaches. No, I
178 00:32:36,300 --> 00:32:45,630 practice what I preach in regards to how my trading is I get out early, that's my model. Because I have seen many times just like this, hi was it just failed
179 00:32:45,630 --> 00:32:55,200 short fell short of the target to see if I would have held on to that was my trailing stop loss here on my full profit, not taking anything out, I would have
180 00:32:55,200 --> 00:33:04,140 been stopped out here. Not getting out at a really good place. And also getting knocked out too. That's a kind of like a double slap in the face. I want to be
181 00:33:04,140 --> 00:33:14,550 getting out when the momentum is moving in my favor. So in this case, if I'm looking for 7828 to 7830, I want to be at at 7020 7015. And I'll leave everybody
182 00:33:14,550 --> 00:33:23,790 else on Facebook and Instagram and on Twitter to say that this is where they got out. But I'll tell you that that's where the markets going to be drawn to. But
183 00:33:24,270 --> 00:33:32,820 will I be in it the entire time 90% of the time now unless I'm purposely like I did in the past. I'm trying not to do this. But I tried to show off in the past
184 00:33:33,060 --> 00:33:43,020 and show I can hold a position right to the last point. And sometimes it works. And it turns you into a superhero. Okay, you got an S on your chest. But it
185 00:33:43,020 --> 00:33:50,670 doesn't mean that I'm trading that with y funds and holding it to the last position. exit point because I'm not doing that I'm looking to get out sometimes
186 00:33:50,670 --> 00:33:59,250 15 to 20 pips early, and I'm content with that. There's much more consistency with doing that, if you're looking for objectives, then that of holding for the
187 00:33:59,250 --> 00:34:03,300 full profit potential, because your ego needs that stroking,
188 00:34:03,360 --> 00:34:10,980 or you need to feel like you were right by doing that. You're not incorrect if you get out early, and price goes to that price point. Because this is what led
189 00:34:10,980 --> 00:34:21,180 me to believe that price would go to that point. This objective, this unfulfilled price objective is what's drawing price higher, why the algorithm
190 00:34:21,180 --> 00:34:29,430 will look for liquidity to a certain degree of price range. And I'm not going to teach all that here. But long and short is it's a repeating phenomenon. And just
191 00:34:29,430 --> 00:34:40,590 with the Fibonacci, it's easy for me to communicate that visually. And it gives you a very easy way of digesting at least what I'm saying and not look like I'm
192 00:34:40,590 --> 00:34:50,550 just pulling things out of thin air. Because there is a rhyme and rhythm rhythm to how these markets move. They're pre determined and they have a scale that
193 00:34:50,550 --> 00:35:03,480 work within and until like non farm payroll or FOMC or an unrelated event like a terrorist attack or a war scenario. They are pretty much you locked inside of a
194 00:35:03,480 --> 00:35:12,630 parameter. Okay, they're not going to limit, they're not going to expose the entire economic infrastructure to collapse on the basis of randomness. It just
195 00:35:12,960 --> 00:35:22,650 doesn't work that way. Okay. So I'm going to end this portion about the Aussie dollar. And I'm gonna go over to cable real quick. And finish this presentation
196 00:35:22,650 --> 00:35:33,840 up for today. We talked about the British Pound being bullish, and I gave you an example of how it's going to run above the previous day's highs. In the same
197 00:35:33,840 --> 00:35:46,680 scenario here, we'll go and add the horizontal line here. Just was the previous day's high. On Tuesday for Wednesday's trading, we traded through that and my
198 00:35:46,680 --> 00:35:56,370 exit point was right in here. Then we had a little bit of retracement and then at the five minute mark, okay, at the five minute mark. Actually to do this,
199 00:36:05,850 --> 00:36:18,000 this level here 132 60. Okay, if you go into my optimal trade entry, failed optimal trade entry video for cable. And you see where I actually mitigate the
200 00:36:18,000 --> 00:36:25,230 loss. At the five minute mark, you'll see me actually adjust my take profit to that level, just kind of like giving you an anchor so I can come back to it
201 00:36:25,230 --> 00:36:33,000 today. I immediately told you I collapse the trade. Because I'm not trying to teach swing trading. I'm not trying to teach short term trading or one shot one
202 00:36:33,000 --> 00:36:41,970 kill none. I'm not teaching that. You have to learn that from my tutorials. When we're together daily, okay, it's just focusing on day trades. And if it doesn't
203 00:36:41,970 --> 00:36:48,660 suit you, I understand, you know, there's no need to give me I don't really interested in it. I don't really, I don't want to read negative feedback. Okay,
204 00:36:48,660 --> 00:36:55,440 because really, it is going to turn me off on it's going to mute you on Twitter. I just don't have time for it. That doesn't mean I'm wanting to be glad hand and
205 00:36:55,440 --> 00:37:03,840 stroked and fucked up on my ego, I just want to know is what I'm sharing, helping you. If it's not, I don't want to know about it. I really don't care.
206 00:37:04,020 --> 00:37:14,310 But I want you to see that this level was placed in as a target, just to kind of like nudge my mentorship. And also, they'll let you dig a little bit deeper as
207 00:37:14,310 --> 00:37:22,800 to what this level is. Now I'm not asking you guys that share on Twitter. Trust me, you guys in my mentorship Do not talk about this stuff. But this level 30 to
208 00:37:22,800 --> 00:37:32,970 60 was adjusted as a take profit. It wasn't randomly selected. It was placed there for a reason. But I want you to now just look at this. Forget the reasons
209 00:37:32,970 --> 00:37:42,780 why it was used for right now. Because if you go through the tutorials, you'll get very close to the reason why that was done. Today's trading we had the Asian
210 00:37:42,780 --> 00:37:53,130 range which is defined here's Asian range high Asian range below and price comes out of the Asian range and doesn't go above the Asian range high but rolls over.
211 00:37:53,580 --> 00:38:00,510 Okay and then we have a nice retracement right here. What do you think that is? We think this is right here.
212 00:38:07,980 --> 00:38:25,350 bodies to the body. See how the body that candle stayed inside optimal trade entry 62 70.5 79. But Michael this spike through yeah did. So what, that's not
213 00:38:25,350 --> 00:38:34,350 what your stock is going to be at. Just that's not gonna be there. Your stocks gonna be referenced over here on the anchor point. This move is your London
214 00:38:34,350 --> 00:38:44,220 setup. Here's your London open kill zone down here. You zoom out a little bit so you guys can get a better perspective. But look what level it's keying off of 30
215 00:38:44,220 --> 00:38:54,060 to 60. Okay, 30 to 60 was the level to take profit at and then it becomes an inversion level where the next setup takes place. So I'm gonna leave you with
216 00:38:54,060 --> 00:39:04,230 that portion of price action, this study what's so significant, about 130 to 60 why it was a catalyst for take profits. And why did the market turn around at
217 00:39:04,230 --> 00:39:14,220 that level and show a London open kill zone. So with optimal trade entry rate at that level, and look at the reaction there. Hopefully you found this insightful.
218 00:39:14,610 --> 00:39:20,880 I will catch up with you guys again, there will not be a live session tomorrow. I'm going to be doing some things with my son at his school so I will not be
219 00:39:21,300 --> 00:39:27,600 able to do that. But I'll resume next week with you guys. Enjoy your weekend. Be safe and until next time. I wish you good luck and good trading