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Version 1.1 by Drunk Monkey on 2020-12-09 06:09
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Drunk Monkey 1.1 1 1
2 00:01:11,790 ~-~-> 00:01:23,340
3 ICT: Good morning, folks, just take a look at this disclaimer, it's important
4 reminding you that what I'm saying is just my opinion, don't believe what I say.
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8 Okay, we are looking at the Australian dollar. And on the left hand side is a
9 daily chart. And on the right hand side, it's the 15 minute timeframe. And a few
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13 days ago, I gave you a optimal trade entry, pattern recognition video for your
14 learning, you guys can use that for your practicing seeing it, watching it
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18 quickly, very short span of time and price action. That way, you can see what
19 the pattern looks like over and over and over again, only by doing that, or by
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22 00:02:14,519 ~-~-> 00:02:23,789
23 making your own charts every day and putting them into like a journal screen
24 capturing the chart, okay. And as soon as you think you see the optimal trade
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28 entry, screen, capture that and then watch it pan out. It may or may not be
29 there, okay, but over time, your ability to be able to see it will improve. Now
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33 today I want to talk about selecting precision price objectives. In other words,
34 where the price may go. Okay, so we've talked about how to get a daily bias real
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38 quick. I'll review that set later things kind of like, you know form as we go
39 through each video is not a plethora of things to know. But there's a lot of
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43 things to learn. But for trading, practicing in your demo account, there are
44 certain things that I think is beneficial to students of mine. Even if you don't
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48 really pursue everything that's in my curriculum or tutelage, I promise you,
49 there's always something out of the 20 some plus years I've been doing this,
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53 invariably I find, even at seasoned traders, will send me feedback and say, hey,
54 look, you know, that was really interesting, that's really filled in a gap in my
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58 understanding, or it's done wonders for my results. And that's great. I
59 appreciate that feedback. But today, we're looking at the Australian dollar, and
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63 then I'll kind of recap with the British pound. So for teaching purposes, we're
64 going to start off on the daily. Okay, and I want to bring your attention to
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68 this little candle right here. Okay. And the first thing we look at is, are we
69 working off of a swing, swing high or swing low. Now, currently, if you look at
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73 this candle here, this one would probably throw up throw most of you off that
74 aren't really simply looking at the pattern as a generic formula where it's a
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78 candle that has a higher low on either side of it. That's a swing low as it
79 really is it relates to this one here, we have a low on this candle here. We
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83 have a lower low, then we have a higher low, skipping the candle right here. Why
84 am I skipping that? Well, it's because it's a Sunday candle. Okay, so this
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88 candle here, kind of like this. disregarded, dismissed it don't think it's there
89 at all. If you have a platform doesn't have Sunday candles, you are at an
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93 advantage because I'm teaching through a forex Ltd demo. So the price action
94 you're seeing here is directly related to the fee they provide and admittedly
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98 the last couple of weeks. They've had some hiccups in their data. So take it for
99 what it is. Okay, I just use it because it has $1 index and dollar index in my
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103 opinion is important when we do analysis but if we disregard this candle right
104 here, we have the past Which is the swing low, we have a lower low here than the
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108 candle before and the candle after it. Okay? Once we have that our thought
109 process is to look for price to want to target runs on liquidity above the
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113 previous day's high. It's just that simple. Okay? I'm not going to be teaching
114 if the, which is the interbank price delivery algorithm. It's a unique thing in
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118 my repertoire, my curriculum, my teachings, it no one else talks about nine
119 books or anything like that. And I'm not teaching you every facet to it, because
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123 that was in my mentorship stuff. So those folks are the only ones I'm gonna
124 share it with me No, and I'm not teaching anymore, but I will give you a very
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128 simple approach, and a very foundational approach on how you can look for
129 setups. And we've already done so by teaching this kind of rehashing it here. So
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133 that way, it's in one video, it's uniform. So you can see everything in one
134 short little video.
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138 So we have a swing low. And then the expectation is is the algorithm that the
139 price engines use for delivering price to all of our feeds. Now, there's going
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143 to be a slight skew in what price we see and what is actually on the interbank
144 level. I'm not going to get into that, just understand that there's always going
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148 to be some slight variance between what you're using to trade with and what I'm
149 showing, okay, everyone's broker is going to have a slightly different quote,
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153 high quote low. It goes along with the territory, you sign it in the risk
154 disclosure saying that you are willing to work within those guidelines and it's
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158 legal, sorry, hate to say it, but you give them permission to do so. So the high
159 we're gonna start targeting and looking for moves above the previous day's high
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163 so once this candle closes, we have a swing low. Okay, disregard this candle
164 right here. Okay. Now the next day, we're gonna be looking for price to trade
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168 above this candle is high, it does so. Okay. Now the next day, we're going to
169 look for the same phenomenon to take place we're going to look for the previous
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173 day's high to be traded through. Okay, we open. I'm not talking about power
174 three today, I'm not doing anything like that. But we're looking for an eventual
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178 run above the previous day's high. This is foundational for directional bias for
179 day trading. Now, I'm only focusing this project if you want to call it on day
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183 trading only I'm not teaching is swing trading. I'm not teaching you position
184 trading like that. This is all just day trading information. You can see price
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188 runs through that. previous day's high. Okay, the same drove the next day.
189 Nothing's changed. We're waiting to see a eventual run through the previous
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193 day's high. It does that. Now is it giving you the low of the day to get in? No,
194 that's not its function. It's not its purpose. This concepts responsibility
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198 really is just to give you Where is price most likely not panacea not be all end
199 all. Not an absolution most likely going to direction higher low. Well, we know
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203 we're refocusing on the market wanting to go above the previous day's high. So
204 that gives us a directional bias on the day. Now there's going to be
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208 fluctuations intraday, and I'm sure 30 different scalpers out there will say,
209 well, you had this wrong because I took 12 pips going short on this, that's,
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213 that's up to you to think that way. And I'm not going to try to say what you're
214 doing is wrong. If it's working for you, great. I'm just sharing my
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218 internalization of what price action means to me. And I leave it all to you
219 whether you think it's valuable or not. Okay, I really don't care to know, if
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223 you think what I'm doing is good or bad. I just want to know how you're using
224 it. Okay, and give me that feedback. That's the only thing I care about. So
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228 we're going to use this information and translate that into what we see on the
229 15 minute timeframe on the Ozzy. Now, again, I'm going to refer you back to the
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233 optimal trade entry pattern recognition video. I did for Aussie dollar, it's in
234 the title, so you can see it on my YouTube channel. But we talked about this
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238 high here and this low right here. Okay, this framework right here, this break
239 in that range, this low to high once it was broken right here. Okay, once price
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243 traded to that point here, that gives us an inclination that maybe perhaps, the
244 market may want to trade higher. If it does, then this phenomenon I just
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248 outlined on the daily chart should manifest itself in price action. If it
249 doesn't, then there's no trade or you'll suffer a loss. There's nothing wrong
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253 with that. yesterday's show, there's no reason to be fearful of taking a loss.
254 Your methods still going to work. If you have a sound method, and you just have
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258 to execute and keep risk small and don't let the demons of price action and
259 trading and speculation Overcoming worry you don't let it scare you out to take
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263 the next trade, but don't over trade too. There's a lot of balancing act in it.
264 So we're going to look at this high rate here, and we get this little trend line
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268 thing here. So when we see this right here, this gets us on the watch list of
269 determining whether or not this whole effect is going to manifest itself. Okay,
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273 now we're looking for reasons to suspect the directional bias should start
274 panning out for upward momentum, seeking liquidity above the previous day's
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278 trading high, or daily high. So we have the short term high broken, right here.
279 So now what we want to do is apply our Fibonacci, not to Fibonacci is the answer
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283 to anything. But it helps as a crutch for new traders, to see areas of
284 valuation.
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288 And I taught you to use the bodies of the candles, not the wicks, because that's
289 where everyone's price action is going to be different. So I focus primarily on
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293 the bulk of the volume being inside the body of the candle. Okay, that's the
294 reason why I'm choosing to do that. So we have this model here, okay, this whole
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298 framework of price swing, this is an impulse price swing, or impulse price leg
299 interchangeable terms. When price trades back down to the 62% retracement level,
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303 70.5 level, or 79% level, that gives us an area to anticipate potential buying
304 opportunities. So we have buys down here likely to form and obviously you have
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308 the benefit of hindsight here. But we have targets of target one, we have the
309 old high, which is your first scale out. This is where you take your first
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313 scaling and adjust your stop to reduce risk. Then here's your next target here,
314 target one didn't target two, and then it's a symmetrical price swing. Okay. As
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318 price unfolds, reaching for previous day's high and the seeking liquidity above
319 each respective previous day's high, each time it does that you need to be
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323 looking to take profits, because at some point, this whole dynamic over here on
324 the daily could potentially change. So you always have to be mindful of, for
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328 instance, if we have a day, for instance, tomorrow, say we have a day that
329 creates a lower high. Well, that changes the whole directional bias now, doesn't
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333 it, we would switch gears and start looking for reasons to see a run on the
334 previous day's low for the liquidity resting below that. So it gives us a
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338 framework at some point, we are potentially going to be wrong. Like anything
339 else in trading, you're going to have a losing trade, you're going to have a
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343 series of losing trades. And you can't fight that. If you try to do that it's
344 going to mess you up. This simply follow the rules, be willing to take a loss
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348 because the loss will give you insight, it just means you're paying a premium
349 for that valuable information. Something has changed internally. Especially if
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353 you see a day that has a lower high. Now you have a swing high. And then you'd
354 look for reasons to start looking for price breaking down below the previous
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358 day's low. Now if it doesn't do that, after the formation of the daily swing
359 high, then we may be consolidating or it could be just a retracement to go
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363 higher again. And once we take out the swing high it formed, its high. And
364 everything resumes back in this model where we start looking for runs on
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368 previous day's highs or old highs, which would be the case over here. Okay, real
369 simple way of approaching building daily bias. It's it closest thing I can give
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373 you that can be written on the back of a business card that is so good. It blows
374 the doors off of most retail stuff. Okay, cuz it gives you a real quick way of
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378 internalizing from an institutional standpoint where liquidity is and how this
379 how to determine what side of the marketplace it's going to target. Alright, so
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382 00:14:04,950 ~-~-> 00:14:17,430
383 now I'm going to maximize this chart over here. Okay, and you can see this is
384 the chart that we shared on that video. And we've just fallen short of target to
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388 over here and started having a deep retracement. It does not mean that the model
389 on the daily chart when it does this, that the daily model or what we're looking
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393 for for daily bias going higher. This doesn't change that. Okay, what we had is
394 we had a consolidation rally up target to didn't get hit no problem. We have a
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398 retracement and it sells off again. I want you to look at this portion of price
399 action right in here. If we're bullish, as we were indicating on the daily
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403 chart, change the color this rectangle and see If we have, let's go with this.
404 And it's not like that's a good background. Alright, so inside this whole
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408 consolidation, we had one run above these highs, got people trapped, chasing
409 long zone breakouts. Okay, now we're trading if you've watched technical
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413 analysis, videos on YouTube or read books, they'll teach us as a bull flag, it
414 rallies up consolidates starts to run higher, it's probably going to do the same
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416 84
417 00:15:36,060 ~-~-> 00:15:44,460
418 move from this low, up to the high added to the low and projected up, they got
419 burned there. Okay, that's why I'm not a real big fan of traditional
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423 technical analysis, because they're used many times to manipulate the thought
424 processes or build sentiment many times is the incorrect perception of what
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428 price is most likely going to do. So we have a consolidation, we have a false
429 move here or break above old highs, they sell off of that, and they run back
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432 00:16:01,920 ~-~-> 00:16:11,520
433 down below what side of the marketplace below the consolidation lows. That's
434 right here. Now, if we have the understanding, or expectation that the daily
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438 chart is predisposed to move higher, each trading day looking for its respective
439 previous day's high to be taken out, we have a bias, that means it's most likely
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441 89
442 00:16:21,390 ~-~-> 00:16:33,270
443 going to go higher. So anytime we drop down, our thought process should be
444 switching to Okay, it's probably going down to knock out week bulls or trip in
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446 90
447 00:16:33,990 ~-~-> 00:16:42,570
448 rushing bears, folks that want to get in on a break below these lows. Okay, if
449 you look at indicators in here, and I'll just throw one up here, just for the
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452 00:16:43,170 ~-~-> 00:16:53,310
453 amusement of it, from using these highs to this high here, momentum indicators,
454 this is really big on Facebook and folks that use that kind of stuff, to
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457 00:16:53,310 ~-~-> 00:17:04,740
458 convince their spectators that they have a bead on what price is doing, you're
459 gonna see a divergence in here. And what is used as a good setup. All right, we
460
461 93
462 00:17:04,740 ~-~-> 00:17:19,530
463 have here and higher here is slightly lower high here. But even on this run to
464 this candle failure. If we use a percent, it's slightly different. Let's do this
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466 94
467 00:17:21,840 ~-~-> 00:17:36,690
468 14% I'm sorry, 14 k period, and will smooth with that's that's good. But that
469 anytime price comes down below old lows. If you want to use a momentum indicator
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472 00:17:36,720 ~-~-> 00:17:45,930
473 that means like stochastic I like stochastic RSI I can't stand it. MACD is so
474 smooth, unless you're using it for long, long, long term position trading. I
475
476 96
477 00:17:45,930 ~-~-> 00:17:56,130
478 don't think it's beneficial either unless you use the histogram. And again, I'm
479 not trying to teach indicators. But I would be very safe in betting that the new
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481 97
482 00:17:56,130 ~-~-> 00:18:05,550
483 crowd that has just started following me uses things like this on our charts,
484 okay, and then looking for overbought, oversold. If you blend what I'm going to
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486 98
487 00:18:05,550 ~-~-> 00:18:13,140
488 show you here, you're going to see that the indicators work then. And that's the
489 times when we see them in textbooks, when they work in a it's favorable to have
490
491 99
492 00:18:13,140 ~-~-> 00:18:20,220
493 been a follower of that perception. That's what tricks people. That's what
494 tricked me when I first started trading, but it doesn't give you the context of
495
496 100
497 00:18:20,220 ~-~-> 00:18:27,660
498 when to use the indicator. And they'll they'll tell you when the moving averages
499 are going up. It's a bull market. So there look for the bullish divergence.
500
501 101
502 00:18:27,930 ~-~-> 00:18:38,610
503 Well, sometimes that works, sometimes it doesn't. So if we know what we're
504 looking for in terms of how the market will reach for liquidity, as I defined on
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506 102
507 00:18:38,610 ~-~-> 00:18:47,310
508 a daily chart, we know that that's what we should be focusing on any other
509 retracements of any kind, until it changes the tune or storyline, it's on a
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511 103
512 00:18:47,310 ~-~-> 00:18:57,330
513 daily chart. Everything going down on the lower timeframes is simply new buying
514 opportunities. It's going down the screw up the mindsets of those individuals
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516 104
517 00:18:57,330 ~-~-> 00:19:06,120
518 watching one in five minute charts, because if they see moves like this, they're
519 gonna think right away, it's going lower. So therefore be short. And traders
520
521 105
522 00:19:06,120 ~-~-> 00:19:14,790
523 that want a lot of confirmation behind their ideas. They will have cell stops
524 triggered right below here because they don't trust what what's going on. They
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526 106
527 00:19:14,790 ~-~-> 00:19:24,750
528 just want to follow the rushing tide. So if price starts to break down as it
529 does below here, they're short. Well, they see a momentary profitability. I'll
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531 107
532 00:19:24,750 ~-~-> 00:19:31,350
533 say it like that, quote unquote. But right away, it's taken away from them and
534 snatched and drunk against them
535
536 108
537 00:19:31,590 ~-~-> 00:19:42,870
538 in another direction. This whole move here was not by coincidence, it's not by
539 you randomness and it also comes by way of a bullish divergence. There's where
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541 109
542 00:19:42,870 ~-~-> 00:19:53,190
543 your bullish divergence works. In momentum indicators were extremely oversold,
544 and we're below old lows. Okay, so what I'm actually giving you is a perception
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546 110
547 00:19:53,220 ~-~-> 00:20:05,760
548 on where price will go to a point to take out long holders Nothing if they were
549 lucky enough to buy over here, they've held through this whole period of time.
550
551 111
552 00:20:06,120 ~-~-> 00:20:15,000
553 And they watched it drop down to right where their stop loss would have been
554 because the textbooks teach. This is a double bottom. So as price ran up, where
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556 112
557 00:20:15,000 ~-~-> 00:20:25,950
558 would they place their stop loss on their long position, right below there. So
559 when we see drops, or declines against the higher timeframe daily chart that is
560
561 113
562 00:20:26,190 ~-~-> 00:20:35,610
563 giving us clues that it's most likely going to go higher than the previous day's
564 high. Anytime we drop down below old lows, that's most likely a stop run. And
565
566 114
567 00:20:35,610 ~-~-> 00:20:45,210
568 you can anticipate that and if you haven't taken a position yet, you can buy
569 just on the basis of that alone. So I'm giving you a little bit of blending on
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571 115
572 00:20:45,210 ~-~-> 00:20:56,370
573 how you can use the retail crutches that are available, but using the right
574 concepts and in time using proper context. So we're going to take this nonsense
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576 116
577 00:20:56,370 ~-~-> 00:21:08,490
578 off. Okay, go right back to price action. So now we had this consolidation,
579 false run above and then make a run on long holders. Notice how after they've
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581 117
582 00:21:08,490 ~-~-> 00:21:18,240
583 taken the stop losses away, and out of the hands of the long holders that were
584 maybe from over here, maybe someone got lucky and bought it down here? I don't
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586 118
587 00:21:18,240 ~-~-> 00:21:25,440
588 know. I don't care to know. All I know is is when it has equal lows like this
589 and the market is predisposed to go higher. That's going to be what I call
590
591 119
592 00:21:25,440 ~-~-> 00:21:34,950
593 Candyland. Okay, they're going to go down here and take those stops away from
594 them. Imagine you want to get somewhere. Okay, and the bus is full. But your big
595
596 120
597 00:21:34,950 ~-~-> 00:21:42,990
598 strong guy, okay, you're a bully. You can go on that bus, snatch my other seat,
599 throw them onto the street and then take their seat over? Well, that's what the
600
601 121
602 00:21:42,990 ~-~-> 00:21:52,350
603 market makers do. You had your seat on the bus, you've been getting closer to
604 your destination, you get real close to the destination, Oh, we got a detour
605
606 122
607 00:21:52,440 ~-~-> 00:21:59,370
608 can't go any further. Okay, we come back down here, when we get to this point
609 here, start to go a little bit higher, you feel you're getting somewhere. Now we
610
611 123
612 00:21:59,370 ~-~-> 00:22:06,150
613 go another detour in the bad section of the neighborhood. Okay, and the guy
614 comes in, knocks off the bus and takes your seat and then ultimately goes where
615
616 124
617 00:22:06,150 ~-~-> 00:22:13,680
618 you want to go, ultimately, but you can't get there. So you've given up profit,
619 and you've given up your seat on the bus and you never got to the destination
620
621 125
622 00:22:13,680 ~-~-> 00:22:22,380
623 you were intended to go. So that's the storyline I teach kind of like what my
624 kids that make it palatable. So you can see it a little bit in price because
625
626 126
627 00:22:22,680 ~-~-> 00:22:30,570
628 looking at it like this, it's abstract. But when you apply things to understand
629 why the price is doing it, the mechanics behind it, that's what it is. Okay,
630
631 127
632 00:22:30,960 ~-~-> 00:22:46,200
633 now, if we see these things happening, okay, I given you the body to body
634 measurements for fit, and the targets being first profit, scaling, target one,
635
636 128
637 00:22:46,380 ~-~-> 00:22:58,050
638 target two, and symmetrical price swing. Okay, I'm going to apply a little bit
639 more information to save some time, but that did a little bit more jawboning
640
641 129
642 00:22:58,050 ~-~-> 00:23:14,910
643 today than I wanted to. And I want to go back out to that same information just
644 with all of the kill zones and such applied. So now we're gonna go back in and
645
646 130
647 00:23:14,910 ~-~-> 00:23:18,420
648 apply the fib real quick, doesn't take long to do it.
649
650 131
651 00:23:31,290 ~-~-> 00:23:50,370
652 Well, Michael, here we are. You fix this real quick while I'm thinking about it,
653 all right. So in the bodies, low and up to the body here. Okay, so we have that
654
655 132
656 00:23:50,370 ~-~-> 00:24:04,260
657 same reference point. Target to failed here didn't get to it just fell short
658 retraced and we have symmetrical price swing. If I add our little arrow things
659
660 133
661 00:24:04,260 ~-~-> 00:24:05,730
662 that mt four provides us
663
664 134
665 00:24:12,840 ~-~-> 00:24:29,430
666 I can quickly add where the price objectives would be. At first scaling was 7782
667 first target 7794 target two and symmetrical price swing, okay or measured move.
668
669 135
670 00:24:31,530 ~-~-> 00:24:40,440
671 That's based on these entries here. Now in here, this whole portion of that
672 consolidation and a false break again, internalize that shaded area head on the
673
674 136
675 00:24:40,440 ~-~-> 00:24:52,740
676 chart just had previously before changing to this perspective. And we're gonna
677 watch this decline here. This drop down from this high What is it retracing from
678
679 137
680 00:24:52,740 ~-~-> 00:25:10,980
681 what's the what's the beginning of the price move? Is it here? Hear here. It's
682 here. Why am I going to use this low? I get this all the time. Why am I going to
683
684 138
685 00:25:10,980 ~-~-> 00:25:20,850
686 put a Fibonacci on this low and not this one, and not this one, because this one
687 has the most recent dynamic price action on the upside. So the bulk of the
688
689 139
690 00:25:20,850 ~-~-> 00:25:43,920
691 buying was right in here. So I'm going to use another fib and anchor it on the
692 body. Right there. And I'm putting it on the body. High right there. Right
693
694 140
695 00:25:43,920 ~-~-> 00:25:54,030
696 there, that's the highest body portion of this leg. Now I'm not using this
697 candle wick. I'm using this one here, that's the highest body. Okay, prior to
698
699 141
700 00:25:54,360 ~-~-> 00:26:04,410
701 this highbeam broken, otherwise, I would use this one. But look what happens. We
702 have 62% retracement level right there. Okay, so we could expect price to drop
703
704 142
705 00:26:04,410 ~-~-> 00:26:15,780
706 down, which changes this range high when, when these highs are taken out right
707 there. So you have to modify the range of your trading inside of so it's this
708
709 143
710 00:26:15,780 ~-~-> 00:26:27,240
711 low. Now not to this book of the volume or the candles high. Not the width we're
712 using, we're using the body of the candle. So now we have to adjust it to this
713
714 144
715 00:26:27,300 ~-~-> 00:26:35,880
716 candles body, it's the highest one in the range. Now, this high to this low.
717 What happens now, not much in terms of optimal trade entry, it just gives us a
718
719 145
720 00:26:36,060 ~-~-> 00:26:47,580
721 more refined area. It still has a buy at that same point, but it goes right to
722 70.5 which is the sweet spot on optimal trade entry. Price hits that during what
723
724 146
725 00:26:47,580 ~-~-> 00:27:03,330
726 time of day. what time of day is this? If I show it to you like that FOMC.
727 That's an FOMC came out. Okay. So if we see this, we know that that big rush of
728
729 147
730 00:27:03,330 ~-~-> 00:27:15,120
731 an injection of volatility coming in by way of FOMC minutes, it can cause either
732 continuation or reversal. In this case, we watched it drop down ahead of FOMC.
733
734 148
735 00:27:15,750 ~-~-> 00:27:23,940
736 And then when it came out, boom price continues on the path of what was already
737 outlined earlier in the week by using the Fibonacci and using what I taught you
738
739 149
740 00:27:23,940 ~-~-> 00:27:35,100
741 for the daily chart when there's a swing low look for previous day's highs taken
742 out. Now if that's the case, we should see other things lining up with targets.
743
744 150
745 00:27:35,130 ~-~-> 00:27:42,510
746 So I'm gonna scroll over just a little bit more. Okay, so now we have today's
747 price action. So we already knew that this is a symmetrical price swing
748
749 151
750 00:27:42,540 ~-~-> 00:27:51,360
751 objective. And that was in video before the fact he showed you how to use the
752 daily chart to determine what direction it was going in. These are static
753
754 152
755 00:27:51,360 ~-~-> 00:28:00,540
756 targets they didn't moved and dynamic. Okay, this one here had to be slightly
757 dynamic because we had a break in this range. So to create a larger price range
758
759 153
760 00:28:00,540 ~-~-> 00:28:09,150
761 to trade inside out so this low to this high trading inside the range my concept
762 down here small, small little retracement back down into an area where we would
763
764 154
765 00:28:09,150 ~-~-> 00:28:21,660
766 expect to see buying. Okay, so now if that's the case, should we be looking for
767 these objectives from this original buy to come to fruition? Yes, because they
768
769 155
770 00:28:21,660 ~-~-> 00:28:32,580
771 were not realized. When they first started to move higher. It never reached it
772 yet. So they're open ended targets they stay in price action. So we can do this.
773
774 156
775 00:28:36,780 ~-~-> 00:28:52,140
776 extend that out in time. Bang, it's did a beautifully the target to level right
777 there. It's it last night before midnight, New York time. Okay. And then
778
779 157
780 00:28:52,140 ~-~-> 00:29:04,530
781 obviously you guys can see target one first Prophet was hit new problem. Now I'm
782 going to show you a blending with the Fibonacci. Okay, and I'm gonna take this
783
784 158
785 00:29:04,530 ~-~-> 00:29:11,850
786 fit off. And I want you to look at this price move right here. See that price
787 like
788
789 159
790 00:29:13,170 ~-~-> 00:29:24,960
791 we're gonna measure that one, and we're going to measure this one because we
792 have an impulse leg and we have a parent impulse leg. That means this high to
793
794 160
795 00:29:24,960 ~-~-> 00:29:34,530
796 this low is to the parent price swing, but there are subordinate price swings
797 inside that larger move. In other words, an example would be since this move
798
799 161
800 00:29:34,530 ~-~-> 00:29:44,490
801 from here to here is the most dominant price leg. Every price like can be broken
802 down into smaller price legs or fractals. So if the retracement is the fractal
803
804 162
805 00:29:44,490 ~-~-> 00:29:54,930
806 we're going to define okay inside that retracement there's going to be smaller
807 retracements of a lesser degree. This high down to this low is another smaller
808
809 163
810 00:29:55,080 ~-~-> 00:30:03,600
811 move of that. This high to that low is another micro price range. This is a mic
812 For a price range from this high to this low, here's another one this high to
813
814 164
815 00:30:03,600 ~-~-> 00:30:13,200
816 this low, and how they nest out, builds market structure as you'll learn in my
817 tutorials. But for now, I want you to take a look at what we get when we use the
818
819 165
820 00:30:13,200 ~-~-> 00:30:31,890
821 Fibonacci, not changing anything low on the bodies up to the body's high right
822 here. Okay, symmetrical price swing, there's your target. For more of a higher
823
824 166
825 00:30:31,890 ~-~-> 00:30:42,540
826 objective, with more refinement and precision, we use the parent price swing, as
827 I just outlined, the low based on the bodies, the high based on the bodies,
828
829 167
830 00:30:43,200 ~-~-> 00:30:54,810
831 smack dab on it, you can't get any cleaner than that range right there. So it's
832 target two, if we break this, we will be looking for 7845 as the next upside
833
834 168
835 00:30:54,810 ~-~-> 00:31:05,280
836 objective. But right now, that is beautiful. It's a beautiful example of
837 precision objectives using the fib using the directional bias. And it also
838
839 169
840 00:31:05,640 ~-~-> 00:31:18,090
841 overlaps very handsomely with the 7828. That was already arrived that way back
842 here on the sixth of October. That was really confirmed, but the response on
843
844 170
845 00:31:18,090 ~-~-> 00:31:27,570
846 optimal trade entry here. And prices moving up like that, we know that these
847 objectives were most likely going to be in play potentially there, it doesn't
848
849 171
850 00:31:27,570 ~-~-> 00:31:36,840
851 mean it's going to stop can't go any higher than 7828 just means that these are
852 reasonable price objectives. And as price moves up into that you want to be
853
854 172
855 00:31:36,840 ~-~-> 00:31:44,100
856 taking profits. Because you don't know if either one of these are going to cause
857 a situation like this, where we have a deeper retracement where they come back
858
859 173
860 00:31:44,100 ~-~-> 00:31:54,210
861 down to take out long holders to unseat their position and take that position
862 over so they can write to the profitable objective. But that this is one element
863
864 174
865 00:31:54,210 ~-~-> 00:32:05,790
866 and how I use for my targeting. Now, admittedly, in my mentorship knows this as
867 well, because I preach it. If this is the objective I'm looking for, ultimately,
868
869 175
870 00:32:05,820 ~-~-> 00:32:18,060
871 or 78. I'm not Yes, 7828. I'm not holding for that. Now, I'll tell people that
872 that's where it's going to go. And two new traders, they hone in on just that.
873
874 176
875 00:32:18,330 ~-~-> 00:32:28,650
876 And they don't pay attention to the trade examples I show where I'm clearly
877 getting out 15 and 20 pips before that now to the pundants. And people that are
878
879 177
880 00:32:28,650 ~-~-> 00:32:36,300
881 just really not interested in learning, they just want to be detractors. They'll
882 say he doesn't follow his method. He doesn't practice what he preaches. No, I
883
884 178
885 00:32:36,300 ~-~-> 00:32:45,630
886 practice what I preach in regards to how my trading is I get out early, that's
887 my model. Because I have seen many times just like this, hi was it just failed
888
889 179
890 00:32:45,630 ~-~-> 00:32:55,200
891 short fell short of the target to see if I would have held on to that was my
892 trailing stop loss here on my full profit, not taking anything out, I would have
893
894 180
895 00:32:55,200 ~-~-> 00:33:04,140
896 been stopped out here. Not getting out at a really good place. And also getting
897 knocked out too. That's a kind of like a double slap in the face. I want to be
898
899 181
900 00:33:04,140 ~-~-> 00:33:14,550
901 getting out when the momentum is moving in my favor. So in this case, if I'm
902 looking for 7828 to 7830, I want to be at at 7020 7015. And I'll leave everybody
903
904 182
905 00:33:14,550 ~-~-> 00:33:23,790
906 else on Facebook and Instagram and on Twitter to say that this is where they got
907 out. But I'll tell you that that's where the markets going to be drawn to. But
908
909 183
910 00:33:24,270 ~-~-> 00:33:32,820
911 will I be in it the entire time 90% of the time now unless I'm purposely like I
912 did in the past. I'm trying not to do this. But I tried to show off in the past
913
914 184
915 00:33:33,060 ~-~-> 00:33:43,020
916 and show I can hold a position right to the last point. And sometimes it works.
917 And it turns you into a superhero. Okay, you got an S on your chest. But it
918
919 185
920 00:33:43,020 ~-~-> 00:33:50,670
921 doesn't mean that I'm trading that with y funds and holding it to the last
922 position. exit point because I'm not doing that I'm looking to get out sometimes
923
924 186
925 00:33:50,670 ~-~-> 00:33:59,250
926 15 to 20 pips early, and I'm content with that. There's much more consistency
927 with doing that, if you're looking for objectives, then that of holding for the
928
929 187
930 00:33:59,250 ~-~-> 00:34:03,300
931 full profit potential, because your ego needs that stroking,
932
933 188
934 00:34:03,360 ~-~-> 00:34:10,980
935 or you need to feel like you were right by doing that. You're not incorrect if
936 you get out early, and price goes to that price point. Because this is what led
937
938 189
939 00:34:10,980 ~-~-> 00:34:21,180
940 me to believe that price would go to that point. This objective, this
941 unfulfilled price objective is what's drawing price higher, why the algorithm
942
943 190
944 00:34:21,180 ~-~-> 00:34:29,430
945 will look for liquidity to a certain degree of price range. And I'm not going to
946 teach all that here. But long and short is it's a repeating phenomenon. And just
947
948 191
949 00:34:29,430 ~-~-> 00:34:40,590
950 with the Fibonacci, it's easy for me to communicate that visually. And it gives
951 you a very easy way of digesting at least what I'm saying and not look like I'm
952
953 192
954 00:34:40,590 ~-~-> 00:34:50,550
955 just pulling things out of thin air. Because there is a rhyme and rhythm rhythm
956 to how these markets move. They're pre determined and they have a scale that
957
958 193
959 00:34:50,550 ~-~-> 00:35:03,480
960 work within and until like non farm payroll or FOMC or an unrelated event like a
961 terrorist attack or a war scenario. They are pretty much you locked inside of a
962
963 194
964 00:35:03,480 ~-~-> 00:35:12,630
965 parameter. Okay, they're not going to limit, they're not going to expose the
966 entire economic infrastructure to collapse on the basis of randomness. It just
967
968 195
969 00:35:12,960 ~-~-> 00:35:22,650
970 doesn't work that way. Okay. So I'm going to end this portion about the Aussie
971 dollar. And I'm gonna go over to cable real quick. And finish this presentation
972
973 196
974 00:35:22,650 ~-~-> 00:35:33,840
975 up for today. We talked about the British Pound being bullish, and I gave you an
976 example of how it's going to run above the previous day's highs. In the same
977
978 197
979 00:35:33,840 ~-~-> 00:35:46,680
980 scenario here, we'll go and add the horizontal line here. Just was the previous
981 day's high. On Tuesday for Wednesday's trading, we traded through that and my
982
983 198
984 00:35:46,680 ~-~-> 00:35:56,370
985 exit point was right in here. Then we had a little bit of retracement and then
986 at the five minute mark, okay, at the five minute mark. Actually to do this,
987
988 199
989 00:36:05,850 ~-~-> 00:36:18,000
990 this level here 132 60. Okay, if you go into my optimal trade entry, failed
991 optimal trade entry video for cable. And you see where I actually mitigate the
992
993 200
994 00:36:18,000 ~-~-> 00:36:25,230
995 loss. At the five minute mark, you'll see me actually adjust my take profit to
996 that level, just kind of like giving you an anchor so I can come back to it
997
998 201
999 00:36:25,230 ~-~-> 00:36:33,000
1000 today. I immediately told you I collapse the trade. Because I'm not trying to
1001 teach swing trading. I'm not trying to teach short term trading or one shot one
1002
1003 202
1004 00:36:33,000 ~-~-> 00:36:41,970
1005 kill none. I'm not teaching that. You have to learn that from my tutorials. When
1006 we're together daily, okay, it's just focusing on day trades. And if it doesn't
1007
1008 203
1009 00:36:41,970 ~-~-> 00:36:48,660
1010 suit you, I understand, you know, there's no need to give me I don't really
1011 interested in it. I don't really, I don't want to read negative feedback. Okay,
1012
1013 204
1014 00:36:48,660 ~-~-> 00:36:55,440
1015 because really, it is going to turn me off on it's going to mute you on Twitter.
1016 I just don't have time for it. That doesn't mean I'm wanting to be glad hand and
1017
1018 205
1019 00:36:55,440 ~-~-> 00:37:03,840
1020 stroked and fucked up on my ego, I just want to know is what I'm sharing,
1021 helping you. If it's not, I don't want to know about it. I really don't care.
1022
1023 206
1024 00:37:04,020 ~-~-> 00:37:14,310
1025 But I want you to see that this level was placed in as a target, just to kind of
1026 like nudge my mentorship. And also, they'll let you dig a little bit deeper as
1027
1028 207
1029 00:37:14,310 ~-~-> 00:37:22,800
1030 to what this level is. Now I'm not asking you guys that share on Twitter. Trust
1031 me, you guys in my mentorship Do not talk about this stuff. But this level 30 to
1032
1033 208
1034 00:37:22,800 ~-~-> 00:37:32,970
1035 60 was adjusted as a take profit. It wasn't randomly selected. It was placed
1036 there for a reason. But I want you to now just look at this. Forget the reasons
1037
1038 209
1039 00:37:32,970 ~-~-> 00:37:42,780
1040 why it was used for right now. Because if you go through the tutorials, you'll
1041 get very close to the reason why that was done. Today's trading we had the Asian
1042
1043 210
1044 00:37:42,780 ~-~-> 00:37:53,130
1045 range which is defined here's Asian range high Asian range below and price comes
1046 out of the Asian range and doesn't go above the Asian range high but rolls over.
1047
1048 211
1049 00:37:53,580 ~-~-> 00:38:00,510
1050 Okay and then we have a nice retracement right here. What do you think that is?
1051 We think this is right here.
1052
1053 212
1054 00:38:07,980 ~-~-> 00:38:25,350
1055 bodies to the body. See how the body that candle stayed inside optimal trade
1056 entry 62 70.5 79. But Michael this spike through yeah did. So what, that's not
1057
1058 213
1059 00:38:25,350 ~-~-> 00:38:34,350
1060 what your stock is going to be at. Just that's not gonna be there. Your stocks
1061 gonna be referenced over here on the anchor point. This move is your London
1062
1063 214
1064 00:38:34,350 ~-~-> 00:38:44,220
1065 setup. Here's your London open kill zone down here. You zoom out a little bit so
1066 you guys can get a better perspective. But look what level it's keying off of 30
1067
1068 215
1069 00:38:44,220 ~-~-> 00:38:54,060
1070 to 60. Okay, 30 to 60 was the level to take profit at and then it becomes an
1071 inversion level where the next setup takes place. So I'm gonna leave you with
1072
1073 216
1074 00:38:54,060 ~-~-> 00:39:04,230
1075 that portion of price action, this study what's so significant, about 130 to 60
1076 why it was a catalyst for take profits. And why did the market turn around at
1077
1078 217
1079 00:39:04,230 ~-~-> 00:39:14,220
1080 that level and show a London open kill zone. So with optimal trade entry rate at
1081 that level, and look at the reaction there. Hopefully you found this insightful.
1082
1083 218
1084 00:39:14,610 ~-~-> 00:39:20,880
1085 I will catch up with you guys again, there will not be a live session tomorrow.
1086 I'm going to be doing some things with my son at his school so I will not be
1087
1088 219
1089 00:39:21,300 ~-~-> 00:39:27,600
1090 able to do that. But I'll resume next week with you guys. Enjoy your weekend. Be
1091 safe and until next time. I wish you good luck and good trading