ICT YT - 2017-11-19 - ICT On Institutional Price Levels and New Science Of Fib Use.srt

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ICT: Okay, folks, welcome, welcome, welcome. We're gonna be talking about a
couple things that are probably going to challenge your preconceived notions

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about some classical analysis concepts that's typically bandied about as the
science of technical analysis. And it's my motivation to inspire you to go into

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your charts and see if what I'm teaching you here today is what exactly happens
just about every single trading day. Just as a reminder, my background is in

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computer science and information systems. So I am a byproduct of the computer
programming generation. And right now, at the time of this recording, I'm 45

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years old. So I've been around a long time. And I've watched the transition from
the open outcry, pit trading, to electronic trading. So while many have in the

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past, struggled to move and transition from floor trading to all floor trading,
I think I've had the advantage of thinking about things from a higher level,

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analytical standpoint. And by that, I mean, I'm already accustomed to
algorithmic thinking. So while it's not important to teach the concept of

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computer programming, to understand what I'm going to show you here, just
understand that those that have these experiences, if you've done any work in

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computer programming, what I'm going to suggest to you is going to make perfect
sense to you and everyone else, probably not so much. But you'll be able to see

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it by experience and seeing and charts. Okay. First and foremost, price is not
random. And price is not a byproduct of supply and demand either. Most folks

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that come into this business will buy into all of the misinformation that comes
by way of instruction, books, seminars, teaching this that nothing. And the

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first and foremost thing that comes out of their mind is you never really know.
And while I'm not preaching 100% accuracy, I am preaching a diametrically

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opposed position to what is deemed as classical technical analysis. My belief
is, it's not about trend lines. It's not about indicators. It's not about

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support and resistance either. So before I go any further into it, just
understand that everything I'm teaching you Here is my personal belief. I

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started like everyone else. And I started with the ideas that are taught and
promoted in books and educators. And I did the same things that anyone else

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would do. The problem was, I wasn't profitable with any of it. And I tried very,
very hard. And it wasn't until I looked at things with the perspective that if I

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were trying to upset the individuals that are trying to do the things that the
books say, how would I go about doing that? What I was creating was a

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documentation stage of a computer program. Okay, from a systems analyst
perspective, okay. I looked at the market as a whole. And if I were to be able

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to wrangle, okay, everybody's collective thought process, or at least a
majority, to think about a specific direction or a specific level of interest in

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price. How would I go about doing that? And how can I do it on a repeating
fashion? Because my belief is price is not random. And if you've watched

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anything of my work, or examples in my trades, you'll see that that's pretty
much a no brainer, it's very predictable. And if we understand that there are

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individuals or entities or now an algorithm that controls the fluctuations in
price, and how do we argue and wrestle with the idea that what was going on

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before electronic trading? Well, it's the same theory that it's used. It's just
been automated. The folks down on the floor When it was open outcry, only the

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illusion was they were helping push price up or pushing price down. And the fact
is, that's not true.

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And the reason why I knew this was most likely accurate, is because I've learned
my SNP trading from Georgia Joe, in Georgia. And Joe was a floor trader for the

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s&p. And he said specifically, in many of his teachings, that he left
demoralized certain days, he lost a lot of money on some particular days, where

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if he had the insight that everyone would assume they have on the floor, he
shouldn't have been having these big suffering losses. So what was going on

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those days? In emulation. So my belief is there's always someone pulling the
strings. Now, I can't introduce you to them. I can't say here's where they

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reside, here's where they originate from. Okay. So there's going to be a certain
measure of Tom Clancy in this, okay, by way of, I guess, you can put the quotes

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in quotes, symbols around it in quotation marks, if you will, conspiracy. And if
that upsets you and bothers, you've just turned the video off, I really don't

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care to try to convince you of it, okay. But if morbid curiosity has kept you on
this long, I promise you, you will be rewarded. So the mechanics of price

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manipulation started in the beginning, okay, it's always been there. As long as
there's been a market, there's always been someone in control, otherwise, it

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could crash, any market could be completely decimated. If it was sheer, by way
of the buying and selling that takes place on speculating, that's it. And they

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build in these ideas, these supposedly circuit breakers, but we're going to stop
the selling from causing the market go down too far. They're all illusions,

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they're things that make you believe that the system is there for your benefit.
And they're putting things in place to protect you as the investor. And that's

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not what goes on. Okay. So, when we look at price action, we understand that if
there is a absence of randomness, that means there must be a present and clear

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order of things. So what is that order? Well, the books will teach you, as they
taught me in my beginning, that it's all about support and resistance. The

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problem is, is what support or which resistance should you use? And how do you
know if a support resistance is going to hold? And I get that question a lot.

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And before we can tackle that question, I'm going to ask you, what does the book
teach you about placing support resistance levels on your chart, find an old

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high find an old well, where it bounced where it repelled. There's where you put
your orders that and therefore the setups are going to occur there? How many

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times has that worked for you? I'm sure a few of you have many examples that you
could say, well, it worked here. They worked here and work here. But if you're

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honest, how many times is a failed you? A lot more? I'm sure. So the question
is, if the market does, in fact, find support and resistance, and I don't

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believe there is support and resistance in the marketplace, it's again, an
illusion. Because what you're supposing is at that specific price level in the

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past is going to have the exact same response going forward. And it never rarely
ever shows that consistency, once in a while will happen enough to write books

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and write chapters and enough to do seminars and webinars on. But when you start
walking forward that idea, you have problems. It's like quicksand. It looks like

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good footing. But when you step out there, you start sinking, and you start
questioning what's really going on. So I had a lot of frustration in the

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beginning, after encountering adversity in my trading, so I had to figure things
out. I had to I had to think about things from an analytical standpoint. And I

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will admit to you right now that I wasn't confident that I was going to figure
it out. But I sure as hell tried. And I was trying every single day, more hours

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than a full time job would have anyone work. Eight to 10 hours a day, sometimes
13 hours a day, and study. So I've been obsessive about this all my life. So I

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want you to understand that I didn't just throw this presentation together
because it just fits today. I want you to go through the same mechanics and

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process that I'm doing here on any market. Any market whatsoever, because it's
the same thing. There's always a puppeteer,

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there's always someone pulling the strings, it's never being left to the
randomness of buying and selling. Okay? So I don't believe there's support

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resistance in the marketplace. And then that's probably unsettling for some of
you. And I don't believe their supply and demand either. Because these are all

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notions that promote the idea of free trade. And there's nothing further than
that. And it comes to truth of the markets, its complete and utter control and

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manipulation. We are given the ideas and perspectives by industry, talking
heads, gurus, teachers, and such. And they could come across with the greatest

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intentions and well meaning spirit. But it's flawed. Because it's promoting the
idea that there's no one really in control of price when there absolutely is.

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And I've shown many times where I can predict within one PIP or the very PIP
have a particular high or low of a day, or week. And to me, no one can have that

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level of skill, or prognostication. If there wasn't a method behind it, that was
measurable, that there was a well, data behind it to support it. Because if we

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understand that, indicators, and trend lines, you've seen all those things
before, if it was beat by that, then we would all have the same settings, we

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would all have the same trend line anchor points. And we don't. And yet, still,
the majority of people lose money doing it. So I was forced at an early age in

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my career, to abandon those things, because I want to only focus on the things
that make sense. And I had to streamline my focus to things that made the

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clearest depiction of what price should do, and finding generic characteristics
and price behavior that will repeat not because it's a specific setting, or

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indicator, but because it's what price will do, by its very nature. So what am I
getting at, if it's not support resistance, what's moving price, order flow.

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It's all about where the money is. Now, the books will never teach you this.
Because the folks that write these books don't understand or even know about it,

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because they're so indoctrinated. They believe wholeheartedly, that their system
of indicators, or their methodology is resulting in that profitable trade, when

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that in itself is the sheer randomness that they're talking about. It's the
price action that's not random. But their reaction and result of their

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interpretation of indicators and their methodology. And that's the randomness of
the results of their system is what's random, not price action. If you look at

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promoters of ideas that sell systems and EAS, and things of that nature, as soon
as they say they have proprietary indicators. that's a that's a red flag right

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there, they are not looking at what I'm going to show you today. And it's very
generic. It's a very simple approach. It's about price. It's the open the high,

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the low and the close. It's a secret for indicator collection. And it goes by
everyone, it goes right over their head every single day. So when we understand,

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or at least I'm asking you to suspend your belief in indicators and other
methodologies just for the sake of this video. If we can simply say that the

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market is and trust me on this, for the presentation, the market moves where the
money is, okay, we know that they are sometimes referred to as a stop run. But

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the books are not always as clear to determine a methodology on how to trade
with that or to avoid it. It's just written up as well. You know, that's why you

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have to have good risk management and money management because price is random.
And again, that's always been a stick in my craw. I've had a problem accepting

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that because people that get wealthy in the markets are not randomly getting
there. They're doing things that are, again, measurable. Now when I'm saying

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making a lot of money. I'm not talking about the guys who make $100,000 a year
I'm talking about the first They make millions of dollars per month. And these

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folks know exactly what's going on.

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And they do the same things over and over and over again. And they expect the
same things and price action because it is absolutely controlled. So what do I

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mean? What do I mean by this? What do I mean by order flow? Well, when I look at
price, as we looking at this chart right now, is many peaks and valleys in it.

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Now, right away, depending upon where you've come from, in your discipline of
technical analysis, your I may be going to harmonic patterns, or your I may be

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drawn to a suppose a trendline, or some view, classic support resistance highs
and lows, bottoms become tops and tops becomes bottoms cliche, whatever that is,

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I'm asking you to to push it to side just for a couple more minutes. And I'm
going to ask you to think about price. Okay, think about a price. And think

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about it in its 00 level. In this example, here, we're looking at the euro
dollar, and we have a price range of 121. Down to approximately 116 or so. in

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that range. There are several 00 levels for what I refer to as a big figure. And
there's several 50 levels, okay, like for instance, like 120 50, or 121 51 1950,

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then you have the big figures, 119, even 120, even 121, even 117, even, and so
on. And I want you to think about how price moves above and below these 50 00

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levels. You probably never noticed it before. But this is the beginning
mechanics of understanding how price moves algorithmically. Okay, I have the 00

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level, the 50 levels on the chart in red. And I've also incorporated the 20
levels and 80 levels, okay, because we're gonna go over a few characteristics

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that are generic and price. But right away, you should be able to see that there
are significant turning points at these references, 20 8050 and zero levels.

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Everyone out there struggles with what's the right support resistance level. And
if you just simply do this to your chart, you'll have the key levels that are

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going to be most likely or salient to current price action at the time. Now I'm
going to take that information and promote an understanding that how we can use

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institutional pricing like this 50 00 levels 20s and 80s. To find key turning
points, okay, which will also lend well to finding setups. So right away, I want

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you to take a look at the reactions that take place around the 50 levels and the
00 levels. For instance, if we look at the 117, big figure down here, price was

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able to move down to it. But did it stop right at that level? Now it went
through it despite a little bit. And then there was a reaction, price came back

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down. Now support resistance idea theory would say okay, let's wait for it to
get back down to that level. It didn't do it. It traded higher. And it cut

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through a mid figure in at level, another big figure through a 20 level but then
failed to get to a 50 level and then fell all the way down back down into this

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level. Now right away folks is subscribed to support resistance, they would say
okay, well, here we are, we traded back to that level. So I can be a buyer now.

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And I'll put a stop loss rate below my low, and they get rewarded for a little
while. And then price comes back down and drives through. Why is it doing that?

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Why is it doing it again here, because these double bottoms are designed to
lower your eye to it and feel that it's safe to put your stop loss below it for

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a long position.

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Whenever we see price points in charts that have equal levels, that's an
opportunity for a raid. Price should go down there, probe that area, and then

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anticipate a rejection and go the other way. And other examples here, double
tops, price runs through it. Now this time it runs through it in doesn't reject.

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The reason why is because we've had a market structure shift inside this area
right here. After trying several times to get below 117 big figure. The

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algorithm was not allowing price to go below. It wasn't the fact that there was
no sellers. And it wasn't an imbalance of more buyers and sellers. The algo was

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working this level 117 How do you know it's working it was that mean? It's going
down to it a lot and sweeping through it. That means they're accumulating long

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positions down here. Every time it makes a lower low. Everyone else's system
will say that's weak. It's making lower lows. No, it's accumulating, buy, buy

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orders, with the existing sellers that are in place below these lows. Now, I
want you to think about how when price reaches up to a 00 level or a 50 level,

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it's significant. Okay, it's kind of like mile markers. So if we can trade
through a 50 level or full figure handle, Okay, so here's your level, or 50.

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That to me, if we understand the daily bias as well, if you think about what I
taught in the high probability scalping series of three videos, the concept of

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determining what the daily bias is in that series is really simple. And you
stick with that daily bias until we get to a potential turning point. And that's

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going to be on the hourly chart, which is what I'm showing you here. Everything
I'm showing you with a purpose in mind should help to remove the anxiety about

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what support resistance levels you should be looking at. And by the time I
conclude this video, where you can put your fibs, okay, and remove all that

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ambiguity. So we're going to assume that we've arrived at a bullish idea that
the euro dollar is going to go up from here, it doesn't matter that you missed

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the buying low point down here, it's not important. Okay, that's not the
important part at all. What I want to show you is, there are folks that will

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argue, okay, and suggest that a lot of the things that I teach or show, it's
been cherry picked for the purpose of looking good. And I'm gonna show you how

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that's not true at all. Okay, and you can find this same types of setups. And
you'll see that they are cookie cutter for the same type of thing all the time.

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And it looks like to the uninitiated, like, perfect hindsight, cherry picking,
but it's not. I'll give you an example. All right, so we had all the cell stops

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ran out on this big figure at 117. Okay, and then price rallies, and it takes
out a key swing high. Now, why is this a key swing high, because it's come all

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the way back down, taking out lows. So if it breaks this high, that will be a
significant event in price action, at least for the euro dollar on an hourly

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chart is price, then, after making a higher high than this swing high here, it
starts to retrace and comes back down. And it finds a reaction right here and

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bounces up again, creates an equal high starts to come back down. folks in the
retail world will see this as resistance. Not you. There has been a shift in the

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market structure rallies. Now what I want you to do is I want you to think about
and I'm gonna zoom in here, swing high that broke this swing high. Now we have a

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bullish market structure. There will be folks out there that will say, Hey, you
know, these educators, they put their fibs in after the fact. So that way, it

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looks good. And they'll do something like this. And that's great. Okay, that
would have worked because it stopped would have never been hit. Okay, but you're

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looking at a swing low, you're looking at the actual price points, okay. And the
reason why I teach folks to focus on the bodies of the candles because your

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broker has the wonderful flexibility that you both agreed to then having about
delivering the price to your platform, and it will always be slightly different

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than what is actually on the interbank level. Now, I'll say that, again, in
layman's terms, everyone's broker's price is going to be slightly different

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because it benefits them in house on their own books, their their own customer
base will be cannibalized when it's convenient for the broker.

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Okay, so, I want you to remove the idea that you have to know what swing low and
what swing high to put your foot one. Okay. Forget that. Because that's what the

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books teach. In 1994. I was, was looking at the Japanese yen of all currencies.
I know. The Japanese yen, I was trying to figure out what I wanted to do with

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that currency. Now, it was before I was trading forex, because forex wasn't
permitted to be traded prior to 1995 unless you were a bank, but in 94, I was

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looking at the Japanese yen. And something struck me as a dissapoint of study I
needed to get into the marketplace and find you know what What could be seen in

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price that repeats itself or whatever I'm struggling to figure it out because I
knew that I could come up with a way and at the time I was going to write a

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computer program that would make my trading automated. That was my intent. But
because I had to understand how it could reference certain price points to

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basically build a condition for bullish or bearishness. I didn't want to use
moving averages because I didn't believe in them because eventually the moving

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average, you know, at the highs will have you buying. And it's over, it's done.
So there had to be something for me to use as a criteria to determine where

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value is where overbought is where it's cheap, now where it's oversold or
overbought and where it's a good price to buy, or where it's a good price to

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sell. And I wanted to make it as generic as possible. So that way, my program
could reference these price points from a very generic standpoint, by that

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choice or pursuit. That particular day, it was July 10 1994. I remember writing
in my blog, in my journal, I said, I want to incorporate this specific thing in

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price action. Now, I did not know the ramifications of this observation in
price. And this is only by me studying price action alone and disregarding my

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indicators, because I had a lot of indicators at the time on my charts. But I
stripped it down and I said I need to know what price is going to do. That can

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be seen and measured over long periods of time, not just perfect examples. And
in hindsight, I need to be able to see this stuff going forward. So once I

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adopted what I'm going to show you here, it made perfect sense. That's the
reason why I could do and I actually contemplated doing this for about a week, I

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was going to plot my fibs, as I'm going to teach you here. And it would have
drove Twitter crazy. Oh, he's putting it where it makes sense for him. And you

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will never you have never seen this. And I'm telling you this, and I'm
challenging you, you find this in any book or educator, and it's got to be

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printed, or in video where you can see it before the fact Okay, like I I know,
it doesn't exist, because I buy everything. But this was never taught to me in

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any of the things I've ever seen. No one else teaches it. And again, it's just
one of those things that you get, or at least I received it by just being

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insanely focused. And from a standpoint, as a computer programmer, I needed to
be able to reference a specific price point. Now I'm gonna say this, and I want

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you to really pay attention. Because if I lost you by now, okay, this is going
to hopefully get you excited. Your broker is high, and my brokers high are not

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going to agree. Our lows are not going to agree there, there's always gonna be
some slight variance. Why is that? Because it's economical for them as the

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broker to manipulate price to shorten the spread to widen the spread when it's
convenient for them.

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That's the reason why I teach the use the body that candle because that's the
bulk of the volume. Now it still is not going to be lockstep for step, the same

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thing you would see on the interbank level, that price is not going to be
delivered to your demo account. It's not gonna be delivered to your Live

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account. And I don't care what broker there is, this is the reason why I avoid
the broker discussion, which is the good broker, it's up to you to decide that I

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don't ever want to promote the idea of one broker being the safest one, or the
best one, because there isn't anyone like that. They all have a vested interest

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in making money off of you. So if you lose money, I don't want you saying that I
cause you to lose money with that broker because you made a decision on your

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own. Okay. I will say this if you go through and do a reasonable research on the
internet and talk to people that are actually using them. That's the best

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feedback and selection process there is okay because the ones that are big name
and doing very well. They didn't get there you overnight, they've been able to

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hold a good customer base and retention. And there's not been enough horror
stories to put people on the on the sidelines about putting money with them.

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Okay, so I'll just say that for completeness sake, but there are folks that will
teach that the Fibonacci needs to be placed on the very, very low up to the

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very, very high and sometimes that works. And sometimes it doesn't. And I teach
that you should put a finger on the body's lowest open or close at a swing low

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up to the highest open or close in a swing high and sometimes It doesn't work.
what is really going on, is prices gravitating to these four levels. Now think I

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gave you a science to finding support resistance just now you don't even realize
it yet. I've also gave you the science behind why my fib works when it works.

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And why I only look at specific swing highs and swing lows. Look closely. price
breaks this swing high, comes back cycles back down into the mid figure. Okay? I

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want you to think about where price originated from. It started sweeping the 17,
big figure, right. And price traded all the way up and traded into the 1820

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institutional price level. Now, it went a little bit above it. But I don't want
you focusing there. It worked off a 17 big figure up to the 1820 level. That's

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where you anchor your fib. If you put your Fibonacci on the 117, big figure,
notice I'm doing it away from any swing lows, any highs and the lows, forget

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that. That's retail thinking. You got to think with an institutional mindset
because this is how the algorithm delivers price. It comes exactly down to the

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62% retracement level, then we get a pop, comes right back to this same price
level, see where it's stopping. It's not stopping at the high, it's stopping at

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the 20 level. Okay, now the same premise in mind, okay, watch what happens, I'm
going to take this fib

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off. And I want you to think about this area right in here. Now, there will be
folks that say you need to put your finger on this low, up to the highest high.

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And let's do that. On the lowest low on the highest high. Yes, we get it hit and
right here on 62%. tracing level, beautiful, nothing wrong with that. But I want

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you to think a little bit differently. Watch what happens 20 level back on
because it took it off. And I'll take this off again. And I'm going to calibrate

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my fib to the actual 50 level, not looking at the actual swing highs and swing
lows, I'm putting it right on the price level itself that prices working the 20

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level off of the 1757 words, look at price hitting 1750 then reaction happens
there. Who cares about the actual low because your low is not going to agree

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with mine. And it's not gonna agree with 50 other people either only the same
people in that same respective liquidity pool or broker is going to have the

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same agreement. So and even if you do that, if you look at like FX cm, they had
many ways of looking at price action. I had people that were trading live in FX

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cm, and I had a Live account with FX cm at one time. And we still didn't even
agree on our highs and lows. So this is the reason why I'm telling you forget

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that. Forget the folks that tell you this is the proper way of putting your fib
on the low and the high forget that because that's not what's going on. Okay,

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price is moving to these four price levels. And they're reacting off of that.
Now when we know this, we can see the anchor point is the price level, not the

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very high or the low. Not the bodies of the candles either the buys or cancel
get you the closest thing to it without me teaching you this. But I wanted to

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answer this response because I got a couple emails from folks that really
support Tom Dante and again, this is not like a pissing match. I'm not trying to

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do that to be disrespectful or anything. But I got a call a correction when it's
necessary. And this is what really should be done with a fib. Looking at the

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reference points whenever you think you're gonna put your your Fibonacci on a
swing low, find out what level it is, if it's a 50 level and at level, a double

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zero level, then that's what you put it on. That's it. Forget all this other
stuff, because that's always going to be erroneous price action. Not in the

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sense that it wasn't necessary, or that they weren't doing something that reach
for stops or something like that. We're defending a level not going down to it

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as many times as they would be reasonably expected to see it It just means that
you have to think about how if price was controlled by a computer program,

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there's no way on earth that could it could ever see all of our orders. It
can't. But when it goes to these levels, and sweeps through it a little bit,

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that's all that's necessary because the common thesis is stop losses are just
below old low, or at the old low. So they go to that specific price level, and

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they whip through it just by a little bit. They don't know where your orders are
specifically, they just know where they're likely to be at. Think about that.

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Now, right away, if I had my anchor points on the price levels, as indicated
here, I got a deeper retracement that goes just a little bit below 62. But

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nonetheless, it's still there. Price rallies again, it takes off. Now watch.
Watch what happens here. If we see this buy point right in here. Well, how is

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that a buy point? Is it going to be a Fibonacci retracement? Well, let's take a
look at that. We're going to use the standard technical analysis way of doing

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it, we're going to put it on the low up to the high right there. Well, we didn't
get down to 62. We didn't get to 70.5. And we sure didn't get down to 79%.

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tradesmen didn't do it. So we can't, we can't look at this as an optimal trade
entry because it didn't retrace deep enough. So therefore, Fibonacci traders,

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and those that use the methodology as taught by the books, and everyone else
uses online, they miss out on this by. But now do what I taught you. We're going

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to calibrate it to

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the level, we're going to start with the 80 level and drop it down into the 50
level. Okay. So right away, we have we have a shortened range in here. It was

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shortened range. Price has blown through what key price level? What did it just
shoot? What did this shoot through? Right here off of this run? It went through

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the big figure 119. So if it's going through with energy to get through 119,
shouldn't it be reasonably expected for it to maybe retest 119, or try to stay

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above 119. That's what the algorithm does. It determines these mile markers in
price. And once it overtakes a key big figure, or a mid figure, it will either

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come back down to it, or it won't come back down to it or it'll come back down
through it in reverse. There's three conditions you have to have now again, the

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folks that understand computer programming, understand exactly what I'm
referring to as if then syntax, it's logic behind the decision making that

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controls what the outcome is going to be. Here, I want you to think about the
the idea of how much energy it took to get away from 118 to get up to 118 80.

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Then it paused. And it ran aggressively again through 119. Big figure up to
119 50 then it starts to retrace? Well, we've cleared a big figure my mind right

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away thinks we probably will come back down to 119 to retest it. But in the
event that it doesn't, what setups could be manifesting there. Watch for the fib

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on the 119. Big figure. And on 119 50. I'm going to zoom in so you can see it

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boom 62% retracement level, there's your optimal trade entry. Now, I'm gonna be
honest with you. If I would have put this on a chart, okay, and anchored to fib

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Ray here and up to here. Everybody would have been screaming, what in the world
this is cherry picking. He doesn't know how to use a Fibonacci really. Because

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I've been doing this for a long, long time. And it's not just these examples
that it works on. I'm telling you to go through your charts, and you'll see it

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when prices bullish as eurodollar was. It's going to be reaching for levels.
Okay. Why do I want to exit early? Like, I think that price may go up to a

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specific price level. Maybe ADR suggesting things maybe I've done some Fibonacci
extensions or whatever. But I want to get out at the most logical price points.

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And they're going to be as close as I can to these four price levels. Look at
the delivery price here. It went right to one, two 50 Yes, it went through it a

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little bit. I am never concerned about that. I don't care about that. Okay, what
structures my trade is? Do I have the ability to get to these levels? Look how

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nice it and easily got to this 120 big finger. It's easy to understand the
mechanics, when you think about price like this, remove the notion of you have

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to have the right swing high and the right swing low. No, you don't. You don't
need that. You need to know where you are in terms of valuation. What's the

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price at? Think about this over here, this axis on your chart is the most
important thing. Then this one down here, it's time when those two agree. And a

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bias is in play. In other words, are you bullish or bearish? There has to be a
stage. Okay, what makes the setup or condition bullish or bearish? That's where

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the hardest work for you is? Because the entry patterns are the easiest, the
easiest, the hardest thing is for you to determine should you be buy or should

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you be a seller and stay in that camp until your setup comes? period. Simple as
that. Now we're going to take this idea. And we're going to switch it to when

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things are bearish. And I'm gonna look at this little point right here. Now if
we were looking at classic Fibonacci application, here's a swing high. And we'll

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put it on the high here, down to the low, didn't even get back to the 50 level,
or equilibrium would be 62 is up here. So how can you get a sell signal here?

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Think about price from an algorithmic standpoint. What price did it just leave?
with energy? It left the 120 big figure. So it left the 120 big figure traded

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down to 119 50. Where should your fit be placed? on 120. So you have 1951 20,
boom 70.5 level, there's your optimal trade entry. I know right? Folks, it's not

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about picking the right swing high. Right, swing low. It's about understanding
what price is doing. It's all in open high, low and close. What is the price

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it's working off of right now? I gave you four price points, 00 levels, 50
levels, 20s and 80s. It's as simple as that there's your support resistance. The

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thing you have to know is where is the bias? Is it bullish or bearish? When you
know these things, and you apply it, you will see things that no one else sees.

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And no one in the teaching circuits teaches this. It's mine. This is the
byproduct of having an insane interest in knowing what price is going to do. And

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having a degree in something that couldn't make money with I went to school to
learn to be a computer programmer. I've never received a paycheck one time doing

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that. But I've received huge paychecks by way of using this information and
thinking about things from an analytical standpoint and trying to formulate

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analytical and algorithmic approaches to deciphering price action. So some more
examples here. If you look at how price is moving, okay, we left the 120 went

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down to 1950, down to 19. Big figure swept through 1850 fell short of 1820.
Okay, so we fell short of 1820. So are they supporting that price level?

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Well, they showed a willingness to go through a short term high here. So even
though it never touched that level, and showed a strong reaction, your broker

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may not have that low touching this institutional level at 20. I still would use
that I would use that reference point. So let's take a look at applying the fib

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on here 1820 and this is the part that's going to seem like form fitting, okay.
But the question is going to be this when you're looking at these levels, the

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questions I asked myself is, is the level being worked up and down around it and
then did it leave it the price get away from it energetically above it, you

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know, moving bullishly away from it or barely moving away from it because it's
going to give you a tip as to what the algorithm is trying to do reprice higher

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or reprice lower. Now also, I'm also determining whether there's a willingness
to get down to that level and if it fails to get to a level going up to it or

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going down to it. I will still Use that level because it's being defended. The
algorithm is trying not to go beyond that price point. The reason why you're

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going to struggle with this is because you have to submit the idea that your
retail account may not show the price level itself. But when you put these

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levels on your chart, it will help you decipher what price is, in fact, probably
doing. Now, you may have expected price to hit that level. Okay. And it made it

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ugly, I probably would have been expecting that same thing that occur here. But
when price reverses, and trades through the short term swing high here, when I

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see that I know that they defended at 20 level, and nothing's changed. It's the
same thing as if you were looking for the setup to occur. Like after the fact

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here, it went above it. Okay, great, I'm going to look for a buy signal on the
same context that I just framed, the earlier buy for this. So we're going to

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anchor our fed right on the 20 level, draw it up to this 1980 level because
price did hit it and had a reaction off of it. Now watch closely. I'm looking at

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the price level.

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jumped on my platform to that low I gotta make sure it doesn't touch that. Okay,
so we're on the 1820 level, up to the 88 level cuz it traded traded to it and

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reacted. So in price comes back down here, this is a buying opportunity right
there. And we can start looking for these targets here. Okay, Brian, for this

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old high. Let's just watch and see what happens in price, using institutional
price levels, not swing highs and swing lows on price, not stressing about,

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well, you know, there's certain educators out there that cherry pick and they
put this stuffing Tom, I'm gonna put that at rest with me, because it doesn't

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work with me. That does not apply to me. I'm not saying he did associate that
with me. I'm saying just in case you did. Okay, I want you to know that there's

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absolute science behind where I put a fit bat. Price meanders goes forward and
look at the reaction right there. Beautiful. That's a buying opportunity as

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well. And what's resting right here. Equal highs, price should react to go where
boom, clear that out. Under underlying premise behind the hump market price is

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it's bullish still. Boom, boom, hits it, it's over. This is what I'm talking
about. When you have to look at order flow, I'm not using these gimmicky things

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that is there in fashion right now. You know, just like supply and demand was in
fashion about five, six years ago. And you know, people still have faith in

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that. But I slice and dice that theory too, because they have limitations on it
that don't make sense. Don't cut through candles, you have to cut through

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candles to get context in the market, you have to know certain things. And if
you start putting parameters on that says you can only look back to this price

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point here and never cut through a candle at this, that doesn't make any sense.
Because you'll never understand a real stop rate. Okay, or a run on a key level.

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If you don't cut through candles, and supply demand teaches that you can't do
that. So let me take that off. We're going to take another couple more examples

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here. And I'll end this video because it's getting really long winded. But the
idea is just to stimulate your thought processes behind it. It's not an absolute

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science for you, as it is for my mentorship. Okay, I'm just giving you examples
of how it is I'm challenged, it cannot be rivaled by any other retail approach.

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If you want to put a Fibonacci on your chart, do it with this mind. And I'm
telling you, you will start looking like a wizard, you'll see things that no one

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else is talking about. And you'll be pulling trades out of the marketplace that
no one else would be doing either price keys off of the 1850 level again, I'm

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not going to the swing low. I'm going right off to the level itself. Okay. And
we're going to go right up to the 1920 level. Boom optimal trade entry. So

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forget all this safe didn't even see this. They didn't worry with it. You want
to be a buyer. No problem. We can capture the buy here. Okay. Same thing we want

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to look for projections on price once starts to move out if we take out this
swing high, which is the old one. How far can it go up to? Here's a 200

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extension. Boom, beautiful. On done completely decimated the euro dollar with
that. Now, did I give you something retail here? Is there any trend lines on it

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any moving averages any stochastics? No, I use the Fibonacci but I used it in a
way that we can grade institutional price swings the markets Move from an

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algorithmic standpoint, they're predictable, you can make a science out of why
it should go where it should go. And where you should get in at getting in is

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the least important, you have to understand what side of the marketplace it's
going to go for the up or the down the bullish or bearish. Okay. So that means

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you need to know what the draw is on price. Well, at this point here buying
here, the draw is above this old high, that's where their buy stops are going to

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be. So even though this is suggesting this is a good level to take profit at,
and it's a real nice reaction there and trades back down. Watch what happens

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again, in this little money price action in here. You probably don't know where
I'm going with it. It'll be the last example for this presentation. We have

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price reacting in sweeping through the 1950 level, and then rallying up then
coming back to a shallow retracement and falling short of getting to the 1980

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level. Forget all that. Where's the price points? 19 5020 5200 PIP range.

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But right on the price levels themselves. Right there. Okay. So we're anchoring
off this level, not the swing low, not the wick. If I were to put this on here,

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why the hell did you do that ICT? You would have been thinking Oh, he put it
back here because this this is that level here night you would have never

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figured this out. You never would have figured this out. Okay. Looking at price,
reacting at 1950. That's the level it was working the algorithm went to that

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level but swept it. So the real key work is 19 mid figure. Okay, so 1950 it
rallies goes up to 2050 or 20 min. Figure then retraces back down. What's the

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hitting right here? 62% retracement level, boom. Well, also, is it happening?
Order block. Today got two things going for you. institution order flow, bullish

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order block, optimal trade entry, buy it, it's going to go above this high for
the stops is your fib target and look at the bodies of the candles very close to

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what would be acceptable as a target. And yes, it wicks through it a couple
times. But that does not concern me. Okay, I want to know these levels here.

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Okay. And this is a buying opportunity that no one would look at this and say
that's an optimal trade entry because they look at just my tutorials. They don't

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have this insight. But now you have it. Okay? If you want to learn things like
this, and you want to apply certain higher level theories that I don't make a

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will ever make them public beyond what I've done here. The mentorship is for
you. If you're not wanting to get to this level of insanity in terms of

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understand what price is going to do, then you just stick to the free tutorials
and that'll be fine. But I just wanted to kind of like answer a response I got.

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Well, I didn't really get it. But I heard it in a video by another educator. And
I just wanted to put my two cents in because I get a lot of opinions expressed

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about me and about my methodology. And many times it's done by way of ignorance,
they don't really know what they're talking about. And they're grading me or

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suggesting that I'm doing certain things when they have clearly no idea what I'm
doing. And I'm going to leave it at that. Okay, but there's so many examples in

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here. Okay, that it's crazy. Like I'll give you one more because I just want to
do it. We have a swing high here. Okay, and we have a swing low here. Really

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nice sell off here. So what was the catalyst behind it? Well, if we put our fib
obviously the market has shown a willingness to break down up here and I go

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through tutorials showing you that now the swing high swing low camp will do
this. Okay, great. It gives you 60% Jason Oh, great. Nothing wrong with that.

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Okay, but in my mind what I'm doing is I'm doing my fib at the level itself at
20 1920 I'm dragging it down

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to 1920 so 2020 to 1920 Why am I putting it down here there's no there's no
reference to this swing boy Michael it doesn't make any sense. This is stupid.

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You don't know what you're doing? Sure I do. Price done what it reacted by going
higher and failing to get to 1920 so what's the algorithm doing is defending

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1920 Well, how do I know that because it took a swing high. Oh well wait a
minute Michael isn't this one of those breaks the swing high comes back down

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optimal trading shrink by No. Because the context is the markets broken down
back here. That's why some of you look for optimal trade entry Long's and you

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don't get them. You get these smashed through and Oh no. How do I know? You have
to know what the market is showing you By context, context is, what's the

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storyline behind price? Is it bullish or bearish? And has it reversed? Because
if it has reversed, well, what's the reversal here, price went above an old

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high, fail to go higher, and came back down, find the reaction low and between
the breaks that it's bearish until it resumes going higher again. So this whole

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model here is bearish. So my optimal trade entry would be framed on something
like this, and it takes me deeper. So I'll get a slightly higher entry price,

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then if we were to use this high to this low, and look at the consolidation of
price action, see the bulk of the volume in there, you're not seeing that, okay,

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now, look how much time the the institutions were given the opportunity to get
short in here, before the big move drop, versus something like this. If you just

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do this, retail, okay, gets one to three chances. Maybe if you want to count
this here, how many times you really want to hit that it's 62. And you know,

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you're probably not going to do it, you're going to want to get up here and
deeper, and get some kind of a better fill. That's not what I'm doing. I'm

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looking for reasons to justify this openly and outwardly to the public. But many
times my personal trades are framed with what would otherwise be seen as no

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basis whatsoever, but there is a rhyme and reason behind it all. Look how much
time price spends in that 62 to 70.5 level, right in here. Lots of opportunity

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to get short there. And then finally, boom, to be Cavan. And you have your
targets, boom, 60, I'm sorry that target two hits it, but also reaches more

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specifically for the 1850. Price wants to go to these levels, folks, it's not
random. Now, obviously, I did not give you do this every single time I've given

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you an idea, because that's what started back in July 10. of 1994. This is what
I wanted to start looking for evidences of. And it just so happened that it

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provides a wonderful opportunity to also segue into answering in addition with
greater detail why Fibonacci is shouldn't be so forced on swing highs and swing

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lows, because that's not the that's not the magic behind it. Okay. And the
reason why the Fibonacci is even showing a willingness to have a profitable

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signal, if you want to call it that. It's just using a reference point of
overbought and oversold. That's all I use the Fibonacci for. I don't need it for

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anything other than that. So I go into great detail about that in the
mentorship. But if you want to trust the fact that the Fibonacci does all the

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work, but you want to use it like this, and have the daily buys understood, then
that's fine. You can be a subscriber in that view and it won't hurt anything,

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it'll still give you the same result. But I know some of you are just really
really keyed up about wanting to know everything there is that I know and these

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types of concepts and things they get taught only in the mentorship so and you
will be able to see a lot of opportunities that would otherwise evade you. And

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until next time, I wish you good luck and good trading