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Version 1.1 by Drunk Monkey on 2020-12-09 06:13
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3 ICT: Okay, folks, welcome, welcome, welcome. We're gonna be talking about a
4 couple things that are probably going to challenge your preconceived notions
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8 about some classical analysis concepts that's typically bandied about as the
9 science of technical analysis. And it's my motivation to inspire you to go into
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13 your charts and see if what I'm teaching you here today is what exactly happens
14 just about every single trading day. Just as a reminder, my background is in
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18 computer science and information systems. So I am a byproduct of the computer
19 programming generation. And right now, at the time of this recording, I'm 45
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23 years old. So I've been around a long time. And I've watched the transition from
24 the open outcry, pit trading, to electronic trading. So while many have in the
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28 past, struggled to move and transition from floor trading to all floor trading,
29 I think I've had the advantage of thinking about things from a higher level,
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33 analytical standpoint. And by that, I mean, I'm already accustomed to
34 algorithmic thinking. So while it's not important to teach the concept of
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38 computer programming, to understand what I'm going to show you here, just
39 understand that those that have these experiences, if you've done any work in
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43 computer programming, what I'm going to suggest to you is going to make perfect
44 sense to you and everyone else, probably not so much. But you'll be able to see
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48 it by experience and seeing and charts. Okay. First and foremost, price is not
49 random. And price is not a byproduct of supply and demand either. Most folks
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53 that come into this business will buy into all of the misinformation that comes
54 by way of instruction, books, seminars, teaching this that nothing. And the
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58 first and foremost thing that comes out of their mind is you never really know.
59 And while I'm not preaching 100% accuracy, I am preaching a diametrically
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63 opposed position to what is deemed as classical technical analysis. My belief
64 is, it's not about trend lines. It's not about indicators. It's not about
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68 support and resistance either. So before I go any further into it, just
69 understand that everything I'm teaching you Here is my personal belief. I
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73 started like everyone else. And I started with the ideas that are taught and
74 promoted in books and educators. And I did the same things that anyone else
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78 would do. The problem was, I wasn't profitable with any of it. And I tried very,
79 very hard. And it wasn't until I looked at things with the perspective that if I
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83 were trying to upset the individuals that are trying to do the things that the
84 books say, how would I go about doing that? What I was creating was a
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88 documentation stage of a computer program. Okay, from a systems analyst
89 perspective, okay. I looked at the market as a whole. And if I were to be able
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93 to wrangle, okay, everybody's collective thought process, or at least a
94 majority, to think about a specific direction or a specific level of interest in
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98 price. How would I go about doing that? And how can I do it on a repeating
99 fashion? Because my belief is price is not random. And if you've watched
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103 anything of my work, or examples in my trades, you'll see that that's pretty
104 much a no brainer, it's very predictable. And if we understand that there are
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108 individuals or entities or now an algorithm that controls the fluctuations in
109 price, and how do we argue and wrestle with the idea that what was going on
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113 before electronic trading? Well, it's the same theory that it's used. It's just
114 been automated. The folks down on the floor When it was open outcry, only the
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118 illusion was they were helping push price up or pushing price down. And the fact
119 is, that's not true.
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123 And the reason why I knew this was most likely accurate, is because I've learned
124 my SNP trading from Georgia Joe, in Georgia. And Joe was a floor trader for the
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128 s&p. And he said specifically, in many of his teachings, that he left
129 demoralized certain days, he lost a lot of money on some particular days, where
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133 if he had the insight that everyone would assume they have on the floor, he
134 shouldn't have been having these big suffering losses. So what was going on
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138 those days? In emulation. So my belief is there's always someone pulling the
139 strings. Now, I can't introduce you to them. I can't say here's where they
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143 reside, here's where they originate from. Okay. So there's going to be a certain
144 measure of Tom Clancy in this, okay, by way of, I guess, you can put the quotes
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148 in quotes, symbols around it in quotation marks, if you will, conspiracy. And if
149 that upsets you and bothers, you've just turned the video off, I really don't
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153 care to try to convince you of it, okay. But if morbid curiosity has kept you on
154 this long, I promise you, you will be rewarded. So the mechanics of price
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158 manipulation started in the beginning, okay, it's always been there. As long as
159 there's been a market, there's always been someone in control, otherwise, it
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163 could crash, any market could be completely decimated. If it was sheer, by way
164 of the buying and selling that takes place on speculating, that's it. And they
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168 build in these ideas, these supposedly circuit breakers, but we're going to stop
169 the selling from causing the market go down too far. They're all illusions,
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173 they're things that make you believe that the system is there for your benefit.
174 And they're putting things in place to protect you as the investor. And that's
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178 not what goes on. Okay. So, when we look at price action, we understand that if
179 there is a absence of randomness, that means there must be a present and clear
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183 order of things. So what is that order? Well, the books will teach you, as they
184 taught me in my beginning, that it's all about support and resistance. The
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188 problem is, is what support or which resistance should you use? And how do you
189 know if a support resistance is going to hold? And I get that question a lot.
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193 And before we can tackle that question, I'm going to ask you, what does the book
194 teach you about placing support resistance levels on your chart, find an old
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198 high find an old well, where it bounced where it repelled. There's where you put
199 your orders that and therefore the setups are going to occur there? How many
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203 times has that worked for you? I'm sure a few of you have many examples that you
204 could say, well, it worked here. They worked here and work here. But if you're
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208 honest, how many times is a failed you? A lot more? I'm sure. So the question
209 is, if the market does, in fact, find support and resistance, and I don't
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213 believe there is support and resistance in the marketplace, it's again, an
214 illusion. Because what you're supposing is at that specific price level in the
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218 past is going to have the exact same response going forward. And it never rarely
219 ever shows that consistency, once in a while will happen enough to write books
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223 and write chapters and enough to do seminars and webinars on. But when you start
224 walking forward that idea, you have problems. It's like quicksand. It looks like
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228 good footing. But when you step out there, you start sinking, and you start
229 questioning what's really going on. So I had a lot of frustration in the
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233 beginning, after encountering adversity in my trading, so I had to figure things
234 out. I had to I had to think about things from an analytical standpoint. And I
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238 will admit to you right now that I wasn't confident that I was going to figure
239 it out. But I sure as hell tried. And I was trying every single day, more hours
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243 than a full time job would have anyone work. Eight to 10 hours a day, sometimes
244 13 hours a day, and study. So I've been obsessive about this all my life. So I
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248 want you to understand that I didn't just throw this presentation together
249 because it just fits today. I want you to go through the same mechanics and
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253 process that I'm doing here on any market. Any market whatsoever, because it's
254 the same thing. There's always a puppeteer,
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258 there's always someone pulling the strings, it's never being left to the
259 randomness of buying and selling. Okay? So I don't believe there's support
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263 resistance in the marketplace. And then that's probably unsettling for some of
264 you. And I don't believe their supply and demand either. Because these are all
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268 notions that promote the idea of free trade. And there's nothing further than
269 that. And it comes to truth of the markets, its complete and utter control and
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273 manipulation. We are given the ideas and perspectives by industry, talking
274 heads, gurus, teachers, and such. And they could come across with the greatest
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278 intentions and well meaning spirit. But it's flawed. Because it's promoting the
279 idea that there's no one really in control of price when there absolutely is.
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283 And I've shown many times where I can predict within one PIP or the very PIP
284 have a particular high or low of a day, or week. And to me, no one can have that
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288 level of skill, or prognostication. If there wasn't a method behind it, that was
289 measurable, that there was a well, data behind it to support it. Because if we
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293 understand that, indicators, and trend lines, you've seen all those things
294 before, if it was beat by that, then we would all have the same settings, we
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298 would all have the same trend line anchor points. And we don't. And yet, still,
299 the majority of people lose money doing it. So I was forced at an early age in
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303 my career, to abandon those things, because I want to only focus on the things
304 that make sense. And I had to streamline my focus to things that made the
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308 clearest depiction of what price should do, and finding generic characteristics
309 and price behavior that will repeat not because it's a specific setting, or
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313 indicator, but because it's what price will do, by its very nature. So what am I
314 getting at, if it's not support resistance, what's moving price, order flow.
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318 It's all about where the money is. Now, the books will never teach you this.
319 Because the folks that write these books don't understand or even know about it,
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323 because they're so indoctrinated. They believe wholeheartedly, that their system
324 of indicators, or their methodology is resulting in that profitable trade, when
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328 that in itself is the sheer randomness that they're talking about. It's the
329 price action that's not random. But their reaction and result of their
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333 interpretation of indicators and their methodology. And that's the randomness of
334 the results of their system is what's random, not price action. If you look at
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338 promoters of ideas that sell systems and EAS, and things of that nature, as soon
339 as they say they have proprietary indicators. that's a that's a red flag right
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343 there, they are not looking at what I'm going to show you today. And it's very
344 generic. It's a very simple approach. It's about price. It's the open the high,
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348 the low and the close. It's a secret for indicator collection. And it goes by
349 everyone, it goes right over their head every single day. So when we understand,
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353 or at least I'm asking you to suspend your belief in indicators and other
354 methodologies just for the sake of this video. If we can simply say that the
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358 market is and trust me on this, for the presentation, the market moves where the
359 money is, okay, we know that they are sometimes referred to as a stop run. But
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363 the books are not always as clear to determine a methodology on how to trade
364 with that or to avoid it. It's just written up as well. You know, that's why you
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368 have to have good risk management and money management because price is random.
369 And again, that's always been a stick in my craw. I've had a problem accepting
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373 that because people that get wealthy in the markets are not randomly getting
374 there. They're doing things that are, again, measurable. Now when I'm saying
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378 making a lot of money. I'm not talking about the guys who make $100,000 a year
379 I'm talking about the first They make millions of dollars per month. And these
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383 folks know exactly what's going on.
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387 And they do the same things over and over and over again. And they expect the
388 same things and price action because it is absolutely controlled. So what do I
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392 mean? What do I mean by this? What do I mean by order flow? Well, when I look at
393 price, as we looking at this chart right now, is many peaks and valleys in it.
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397 Now, right away, depending upon where you've come from, in your discipline of
398 technical analysis, your I may be going to harmonic patterns, or your I may be
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402 drawn to a suppose a trendline, or some view, classic support resistance highs
403 and lows, bottoms become tops and tops becomes bottoms cliche, whatever that is,
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407 I'm asking you to to push it to side just for a couple more minutes. And I'm
408 going to ask you to think about price. Okay, think about a price. And think
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412 about it in its 00 level. In this example, here, we're looking at the euro
413 dollar, and we have a price range of 121. Down to approximately 116 or so. in
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417 that range. There are several 00 levels for what I refer to as a big figure. And
418 there's several 50 levels, okay, like for instance, like 120 50, or 121 51 1950,
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422 then you have the big figures, 119, even 120, even 121, even 117, even, and so
423 on. And I want you to think about how price moves above and below these 50 00
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427 levels. You probably never noticed it before. But this is the beginning
428 mechanics of understanding how price moves algorithmically. Okay, I have the 00
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432 level, the 50 levels on the chart in red. And I've also incorporated the 20
433 levels and 80 levels, okay, because we're gonna go over a few characteristics
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437 that are generic and price. But right away, you should be able to see that there
438 are significant turning points at these references, 20 8050 and zero levels.
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442 Everyone out there struggles with what's the right support resistance level. And
443 if you just simply do this to your chart, you'll have the key levels that are
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447 going to be most likely or salient to current price action at the time. Now I'm
448 going to take that information and promote an understanding that how we can use
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452 institutional pricing like this 50 00 levels 20s and 80s. To find key turning
453 points, okay, which will also lend well to finding setups. So right away, I want
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457 you to take a look at the reactions that take place around the 50 levels and the
458 00 levels. For instance, if we look at the 117, big figure down here, price was
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462 able to move down to it. But did it stop right at that level? Now it went
463 through it despite a little bit. And then there was a reaction, price came back
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467 down. Now support resistance idea theory would say okay, let's wait for it to
468 get back down to that level. It didn't do it. It traded higher. And it cut
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472 through a mid figure in at level, another big figure through a 20 level but then
473 failed to get to a 50 level and then fell all the way down back down into this
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477 level. Now right away folks is subscribed to support resistance, they would say
478 okay, well, here we are, we traded back to that level. So I can be a buyer now.
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482 And I'll put a stop loss rate below my low, and they get rewarded for a little
483 while. And then price comes back down and drives through. Why is it doing that?
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486 00:18:52,470 ~-~-> 00:19:03,900
487 Why is it doing it again here, because these double bottoms are designed to
488 lower your eye to it and feel that it's safe to put your stop loss below it for
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492 a long position.
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496 Whenever we see price points in charts that have equal levels, that's an
497 opportunity for a raid. Price should go down there, probe that area, and then
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501 anticipate a rejection and go the other way. And other examples here, double
502 tops, price runs through it. Now this time it runs through it in doesn't reject.
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506 The reason why is because we've had a market structure shift inside this area
507 right here. After trying several times to get below 117 big figure. The
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511 algorithm was not allowing price to go below. It wasn't the fact that there was
512 no sellers. And it wasn't an imbalance of more buyers and sellers. The algo was
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516 working this level 117 How do you know it's working it was that mean? It's going
517 down to it a lot and sweeping through it. That means they're accumulating long
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521 positions down here. Every time it makes a lower low. Everyone else's system
522 will say that's weak. It's making lower lows. No, it's accumulating, buy, buy
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526 orders, with the existing sellers that are in place below these lows. Now, I
527 want you to think about how when price reaches up to a 00 level or a 50 level,
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531 it's significant. Okay, it's kind of like mile markers. So if we can trade
532 through a 50 level or full figure handle, Okay, so here's your level, or 50.
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536 That to me, if we understand the daily bias as well, if you think about what I
537 taught in the high probability scalping series of three videos, the concept of
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541 determining what the daily bias is in that series is really simple. And you
542 stick with that daily bias until we get to a potential turning point. And that's
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546 going to be on the hourly chart, which is what I'm showing you here. Everything
547 I'm showing you with a purpose in mind should help to remove the anxiety about
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551 what support resistance levels you should be looking at. And by the time I
552 conclude this video, where you can put your fibs, okay, and remove all that
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556 ambiguity. So we're going to assume that we've arrived at a bullish idea that
557 the euro dollar is going to go up from here, it doesn't matter that you missed
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561 the buying low point down here, it's not important. Okay, that's not the
562 important part at all. What I want to show you is, there are folks that will
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566 argue, okay, and suggest that a lot of the things that I teach or show, it's
567 been cherry picked for the purpose of looking good. And I'm gonna show you how
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571 that's not true at all. Okay, and you can find this same types of setups. And
572 you'll see that they are cookie cutter for the same type of thing all the time.
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574 116
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576 And it looks like to the uninitiated, like, perfect hindsight, cherry picking,
577 but it's not. I'll give you an example. All right, so we had all the cell stops
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579 117
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581 ran out on this big figure at 117. Okay, and then price rallies, and it takes
582 out a key swing high. Now, why is this a key swing high, because it's come all
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586 the way back down, taking out lows. So if it breaks this high, that will be a
587 significant event in price action, at least for the euro dollar on an hourly
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591 chart is price, then, after making a higher high than this swing high here, it
592 starts to retrace and comes back down. And it finds a reaction right here and
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594 120
595 00:22:45,720 ~-~-> 00:22:57,000
596 bounces up again, creates an equal high starts to come back down. folks in the
597 retail world will see this as resistance. Not you. There has been a shift in the
598
599 121
600 00:22:57,000 ~-~-> 00:23:07,710
601 market structure rallies. Now what I want you to do is I want you to think about
602 and I'm gonna zoom in here, swing high that broke this swing high. Now we have a
603
604 122
605 00:23:07,710 ~-~-> 00:23:20,370
606 bullish market structure. There will be folks out there that will say, Hey, you
607 know, these educators, they put their fibs in after the fact. So that way, it
608
609 123
610 00:23:20,370 ~-~-> 00:23:28,080
611 looks good. And they'll do something like this. And that's great. Okay, that
612 would have worked because it stopped would have never been hit. Okay, but you're
613
614 124
615 00:23:28,080 ~-~-> 00:23:37,590
616 looking at a swing low, you're looking at the actual price points, okay. And the
617 reason why I teach folks to focus on the bodies of the candles because your
618
619 125
620 00:23:37,590 ~-~-> 00:23:49,920
621 broker has the wonderful flexibility that you both agreed to then having about
622 delivering the price to your platform, and it will always be slightly different
623
624 126
625 00:23:49,920 ~-~-> 00:23:57,630
626 than what is actually on the interbank level. Now, I'll say that, again, in
627 layman's terms, everyone's broker's price is going to be slightly different
628
629 127
630 00:23:57,630 ~-~-> 00:24:07,920
631 because it benefits them in house on their own books, their their own customer
632 base will be cannibalized when it's convenient for the broker.
633
634 128
635 00:24:09,960 ~-~-> 00:24:21,630
636 Okay, so, I want you to remove the idea that you have to know what swing low and
637 what swing high to put your foot one. Okay. Forget that. Because that's what the
638
639 129
640 00:24:21,630 ~-~-> 00:24:33,930
641 books teach. In 1994. I was, was looking at the Japanese yen of all currencies.
642 I know. The Japanese yen, I was trying to figure out what I wanted to do with
643
644 130
645 00:24:33,930 ~-~-> 00:24:47,370
646 that currency. Now, it was before I was trading forex, because forex wasn't
647 permitted to be traded prior to 1995 unless you were a bank, but in 94, I was
648
649 131
650 00:24:47,370 ~-~-> 00:25:02,250
651 looking at the Japanese yen. And something struck me as a dissapoint of study I
652 needed to get into the marketplace and find you know what What could be seen in
653
654 132
655 00:25:02,250 ~-~-> 00:25:11,700
656 price that repeats itself or whatever I'm struggling to figure it out because I
657 knew that I could come up with a way and at the time I was going to write a
658
659 133
660 00:25:11,700 ~-~-> 00:25:23,070
661 computer program that would make my trading automated. That was my intent. But
662 because I had to understand how it could reference certain price points to
663
664 134
665 00:25:24,420 ~-~-> 00:25:30,990
666 basically build a condition for bullish or bearishness. I didn't want to use
667 moving averages because I didn't believe in them because eventually the moving
668
669 135
670 00:25:30,990 ~-~-> 00:25:41,160
671 average, you know, at the highs will have you buying. And it's over, it's done.
672 So there had to be something for me to use as a criteria to determine where
673
674 136
675 00:25:41,160 ~-~-> 00:25:50,850
676 value is where overbought is where it's cheap, now where it's oversold or
677 overbought and where it's a good price to buy, or where it's a good price to
678
679 137
680 00:25:50,850 ~-~-> 00:26:03,780
681 sell. And I wanted to make it as generic as possible. So that way, my program
682 could reference these price points from a very generic standpoint, by that
683
684 138
685 00:26:05,700 ~-~-> 00:26:19,590
686 choice or pursuit. That particular day, it was July 10 1994. I remember writing
687 in my blog, in my journal, I said, I want to incorporate this specific thing in
688
689 139
690 00:26:19,590 ~-~-> 00:26:32,610
691 price action. Now, I did not know the ramifications of this observation in
692 price. And this is only by me studying price action alone and disregarding my
693
694 140
695 00:26:32,610 ~-~-> 00:26:41,730
696 indicators, because I had a lot of indicators at the time on my charts. But I
697 stripped it down and I said I need to know what price is going to do. That can
698
699 141
700 00:26:41,730 ~-~-> 00:26:50,700
701 be seen and measured over long periods of time, not just perfect examples. And
702 in hindsight, I need to be able to see this stuff going forward. So once I
703
704 142
705 00:26:50,700 ~-~-> 00:27:01,200
706 adopted what I'm going to show you here, it made perfect sense. That's the
707 reason why I could do and I actually contemplated doing this for about a week, I
708
709 143
710 00:27:01,200 ~-~-> 00:27:10,080
711 was going to plot my fibs, as I'm going to teach you here. And it would have
712 drove Twitter crazy. Oh, he's putting it where it makes sense for him. And you
713
714 144
715 00:27:10,080 ~-~-> 00:27:19,140
716 will never you have never seen this. And I'm telling you this, and I'm
717 challenging you, you find this in any book or educator, and it's got to be
718
719 145
720 00:27:19,140 ~-~-> 00:27:29,370
721 printed, or in video where you can see it before the fact Okay, like I I know,
722 it doesn't exist, because I buy everything. But this was never taught to me in
723
724 146
725 00:27:29,460 ~-~-> 00:27:39,600
726 any of the things I've ever seen. No one else teaches it. And again, it's just
727 one of those things that you get, or at least I received it by just being
728
729 147
730 00:27:39,630 ~-~-> 00:27:55,020
731 insanely focused. And from a standpoint, as a computer programmer, I needed to
732 be able to reference a specific price point. Now I'm gonna say this, and I want
733
734 148
735 00:27:55,020 ~-~-> 00:28:06,540
736 you to really pay attention. Because if I lost you by now, okay, this is going
737 to hopefully get you excited. Your broker is high, and my brokers high are not
738
739 149
740 00:28:06,540 ~-~-> 00:28:17,940
741 going to agree. Our lows are not going to agree there, there's always gonna be
742 some slight variance. Why is that? Because it's economical for them as the
743
744 150
745 00:28:17,940 ~-~-> 00:28:25,110
746 broker to manipulate price to shorten the spread to widen the spread when it's
747 convenient for them.
748
749 151
750 00:28:26,400 ~-~-> 00:28:34,320
751 That's the reason why I teach the use the body that candle because that's the
752 bulk of the volume. Now it still is not going to be lockstep for step, the same
753
754 152
755 00:28:34,320 ~-~-> 00:28:41,730
756 thing you would see on the interbank level, that price is not going to be
757 delivered to your demo account. It's not gonna be delivered to your Live
758
759 153
760 00:28:41,730 ~-~-> 00:28:48,630
761 account. And I don't care what broker there is, this is the reason why I avoid
762 the broker discussion, which is the good broker, it's up to you to decide that I
763
764 154
765 00:28:48,630 ~-~-> 00:28:57,840
766 don't ever want to promote the idea of one broker being the safest one, or the
767 best one, because there isn't anyone like that. They all have a vested interest
768
769 155
770 00:28:57,840 ~-~-> 00:29:06,540
771 in making money off of you. So if you lose money, I don't want you saying that I
772 cause you to lose money with that broker because you made a decision on your
773
774 156
775 00:29:06,540 ~-~-> 00:29:15,780
776 own. Okay. I will say this if you go through and do a reasonable research on the
777 internet and talk to people that are actually using them. That's the best
778
779 157
780 00:29:15,780 ~-~-> 00:29:24,450
781 feedback and selection process there is okay because the ones that are big name
782 and doing very well. They didn't get there you overnight, they've been able to
783
784 158
785 00:29:24,450 ~-~-> 00:29:33,150
786 hold a good customer base and retention. And there's not been enough horror
787 stories to put people on the on the sidelines about putting money with them.
788
789 159
790 00:29:33,570 ~-~-> 00:29:43,680
791 Okay, so I'll just say that for completeness sake, but there are folks that will
792 teach that the Fibonacci needs to be placed on the very, very low up to the
793
794 160
795 00:29:43,680 ~-~-> 00:29:55,860
796 very, very high and sometimes that works. And sometimes it doesn't. And I teach
797 that you should put a finger on the body's lowest open or close at a swing low
798
799 161
800 00:29:55,980 ~-~-> 00:30:13,170
801 up to the highest open or close in a swing high and sometimes It doesn't work.
802 what is really going on, is prices gravitating to these four levels. Now think I
803
804 162
805 00:30:13,170 ~-~-> 00:30:24,990
806 gave you a science to finding support resistance just now you don't even realize
807 it yet. I've also gave you the science behind why my fib works when it works.
808
809 163
810 00:30:25,980 ~-~-> 00:30:42,630
811 And why I only look at specific swing highs and swing lows. Look closely. price
812 breaks this swing high, comes back cycles back down into the mid figure. Okay? I
813
814 164
815 00:30:42,630 ~-~-> 00:30:59,310
816 want you to think about where price originated from. It started sweeping the 17,
817 big figure, right. And price traded all the way up and traded into the 1820
818
819 165
820 00:31:00,090 ~-~-> 00:31:14,880
821 institutional price level. Now, it went a little bit above it. But I don't want
822 you focusing there. It worked off a 17 big figure up to the 1820 level. That's
823
824 166
825 00:31:14,880 ~-~-> 00:31:27,720
826 where you anchor your fib. If you put your Fibonacci on the 117, big figure,
827 notice I'm doing it away from any swing lows, any highs and the lows, forget
828
829 167
830 00:31:27,720 ~-~-> 00:31:38,130
831 that. That's retail thinking. You got to think with an institutional mindset
832 because this is how the algorithm delivers price. It comes exactly down to the
833
834 168
835 00:31:38,130 ~-~-> 00:31:47,010
836 62% retracement level, then we get a pop, comes right back to this same price
837 level, see where it's stopping. It's not stopping at the high, it's stopping at
838
839 169
840 00:31:47,010 ~-~-> 00:31:53,370
841 the 20 level. Okay, now the same premise in mind, okay, watch what happens, I'm
842 going to take this fib
843
844 170
845 00:31:59,880 ~-~-> 00:32:12,240
846 off. And I want you to think about this area right in here. Now, there will be
847 folks that say you need to put your finger on this low, up to the highest high.
848
849 171
850 00:32:12,510 ~-~-> 00:32:25,770
851 And let's do that. On the lowest low on the highest high. Yes, we get it hit and
852 right here on 62%. tracing level, beautiful, nothing wrong with that. But I want
853
854 172
855 00:32:25,770 ~-~-> 00:32:39,780
856 you to think a little bit differently. Watch what happens 20 level back on
857 because it took it off. And I'll take this off again. And I'm going to calibrate
858
859 173
860 00:32:39,780 ~-~-> 00:32:52,080
861 my fib to the actual 50 level, not looking at the actual swing highs and swing
862 lows, I'm putting it right on the price level itself that prices working the 20
863
864 174
865 00:32:52,080 ~-~-> 00:33:02,730
866 level off of the 1757 words, look at price hitting 1750 then reaction happens
867 there. Who cares about the actual low because your low is not going to agree
868
869 175
870 00:33:02,730 ~-~-> 00:33:11,880
871 with mine. And it's not gonna agree with 50 other people either only the same
872 people in that same respective liquidity pool or broker is going to have the
873
874 176
875 00:33:11,910 ~-~-> 00:33:25,080
876 same agreement. So and even if you do that, if you look at like FX cm, they had
877 many ways of looking at price action. I had people that were trading live in FX
878
879 177
880 00:33:25,080 ~-~-> 00:33:36,210
881 cm, and I had a Live account with FX cm at one time. And we still didn't even
882 agree on our highs and lows. So this is the reason why I'm telling you forget
883
884 178
885 00:33:36,210 ~-~-> 00:33:44,310
886 that. Forget the folks that tell you this is the proper way of putting your fib
887 on the low and the high forget that because that's not what's going on. Okay,
888
889 179
890 00:33:44,970 ~-~-> 00:33:57,360
891 price is moving to these four price levels. And they're reacting off of that.
892 Now when we know this, we can see the anchor point is the price level, not the
893
894 180
895 00:33:57,360 ~-~-> 00:34:06,570
896 very high or the low. Not the bodies of the candles either the buys or cancel
897 get you the closest thing to it without me teaching you this. But I wanted to
898
899 181
900 00:34:06,570 ~-~-> 00:34:17,010
901 answer this response because I got a couple emails from folks that really
902 support Tom Dante and again, this is not like a pissing match. I'm not trying to
903
904 182
905 00:34:17,010 ~-~-> 00:34:29,130
906 do that to be disrespectful or anything. But I got a call a correction when it's
907 necessary. And this is what really should be done with a fib. Looking at the
908
909 183
910 00:34:29,130 ~-~-> 00:34:36,780
911 reference points whenever you think you're gonna put your your Fibonacci on a
912 swing low, find out what level it is, if it's a 50 level and at level, a double
913
914 184
915 00:34:36,780 ~-~-> 00:34:48,450
916 zero level, then that's what you put it on. That's it. Forget all this other
917 stuff, because that's always going to be erroneous price action. Not in the
918
919 185
920 00:34:48,450 ~-~-> 00:34:57,420
921 sense that it wasn't necessary, or that they weren't doing something that reach
922 for stops or something like that. We're defending a level not going down to it
923
924 186
925 00:34:57,750 ~-~-> 00:35:07,950
926 as many times as they would be reasonably expected to see it It just means that
927 you have to think about how if price was controlled by a computer program,
928
929 187
930 00:35:08,460 ~-~-> 00:35:19,680
931 there's no way on earth that could it could ever see all of our orders. It
932 can't. But when it goes to these levels, and sweeps through it a little bit,
933
934 188
935 00:35:19,680 ~-~-> 00:35:29,520
936 that's all that's necessary because the common thesis is stop losses are just
937 below old low, or at the old low. So they go to that specific price level, and
938
939 189
940 00:35:29,520 ~-~-> 00:35:39,540
941 they whip through it just by a little bit. They don't know where your orders are
942 specifically, they just know where they're likely to be at. Think about that.
943
944 190
945 00:35:40,500 ~-~-> 00:35:51,690
946 Now, right away, if I had my anchor points on the price levels, as indicated
947 here, I got a deeper retracement that goes just a little bit below 62. But
948
949 191
950 00:35:51,690 ~-~-> 00:36:06,360
951 nonetheless, it's still there. Price rallies again, it takes off. Now watch.
952 Watch what happens here. If we see this buy point right in here. Well, how is
953
954 192
955 00:36:06,360 ~-~-> 00:36:18,060
956 that a buy point? Is it going to be a Fibonacci retracement? Well, let's take a
957 look at that. We're going to use the standard technical analysis way of doing
958
959 193
960 00:36:18,060 ~-~-> 00:36:29,070
961 it, we're going to put it on the low up to the high right there. Well, we didn't
962 get down to 62. We didn't get to 70.5. And we sure didn't get down to 79%.
963
964 194
965 00:36:29,070 ~-~-> 00:36:37,890
966 tradesmen didn't do it. So we can't, we can't look at this as an optimal trade
967 entry because it didn't retrace deep enough. So therefore, Fibonacci traders,
968
969 195
970 00:36:37,890 ~-~-> 00:36:50,340
971 and those that use the methodology as taught by the books, and everyone else
972 uses online, they miss out on this by. But now do what I taught you. We're going
973
974 196
975 00:36:50,340 ~-~-> 00:36:51,480
976 to calibrate it to
977
978 197
979 00:36:53,010 ~-~-> 00:37:05,670
980 the level, we're going to start with the 80 level and drop it down into the 50
981 level. Okay. So right away, we have we have a shortened range in here. It was
982
983 198
984 00:37:05,670 ~-~-> 00:37:17,670
985 shortened range. Price has blown through what key price level? What did it just
986 shoot? What did this shoot through? Right here off of this run? It went through
987
988 199
989 00:37:17,790 ~-~-> 00:37:30,720
990 the big figure 119. So if it's going through with energy to get through 119,
991 shouldn't it be reasonably expected for it to maybe retest 119, or try to stay
992
993 200
994 00:37:30,720 ~-~-> 00:37:44,100
995 above 119. That's what the algorithm does. It determines these mile markers in
996 price. And once it overtakes a key big figure, or a mid figure, it will either
997
998 201
999 00:37:44,100 ~-~-> 00:37:52,710
1000 come back down to it, or it won't come back down to it or it'll come back down
1001 through it in reverse. There's three conditions you have to have now again, the
1002
1003 202
1004 00:37:52,710 ~-~-> 00:38:03,390
1005 folks that understand computer programming, understand exactly what I'm
1006 referring to as if then syntax, it's logic behind the decision making that
1007
1008 203
1009 00:38:03,420 ~-~-> 00:38:13,800
1010 controls what the outcome is going to be. Here, I want you to think about the
1011 the idea of how much energy it took to get away from 118 to get up to 118 80.
1012
1013 204
1014 00:38:14,070 ~-~-> 00:38:25,080
1015 Then it paused. And it ran aggressively again through 119. Big figure up to
1016 119 50 then it starts to retrace? Well, we've cleared a big figure my mind right
1017
1018 205
1019 00:38:25,080 ~-~-> 00:38:41,280
1020 away thinks we probably will come back down to 119 to retest it. But in the
1021 event that it doesn't, what setups could be manifesting there. Watch for the fib
1022
1023 206
1024 00:38:41,310 ~-~-> 00:38:48,990
1025 on the 119. Big figure. And on 119 50. I'm going to zoom in so you can see it
1026
1027 207
1028 00:38:56,970 ~-~-> 00:39:08,550
1029 boom 62% retracement level, there's your optimal trade entry. Now, I'm gonna be
1030 honest with you. If I would have put this on a chart, okay, and anchored to fib
1031
1032 208
1033 00:39:08,760 ~-~-> 00:39:21,000
1034 Ray here and up to here. Everybody would have been screaming, what in the world
1035 this is cherry picking. He doesn't know how to use a Fibonacci really. Because
1036
1037 209
1038 00:39:21,000 ~-~-> 00:39:27,900
1039 I've been doing this for a long, long time. And it's not just these examples
1040 that it works on. I'm telling you to go through your charts, and you'll see it
1041
1042 210
1043 00:39:28,980 ~-~-> 00:39:42,030
1044 when prices bullish as eurodollar was. It's going to be reaching for levels.
1045 Okay. Why do I want to exit early? Like, I think that price may go up to a
1046
1047 211
1048 00:39:42,030 ~-~-> 00:39:51,060
1049 specific price level. Maybe ADR suggesting things maybe I've done some Fibonacci
1050 extensions or whatever. But I want to get out at the most logical price points.
1051
1052 212
1053 00:39:52,380 ~-~-> 00:40:02,730
1054 And they're going to be as close as I can to these four price levels. Look at
1055 the delivery price here. It went right to one, two 50 Yes, it went through it a
1056
1057 213
1058 00:40:02,730 ~-~-> 00:40:12,390
1059 little bit. I am never concerned about that. I don't care about that. Okay, what
1060 structures my trade is? Do I have the ability to get to these levels? Look how
1061
1062 214
1063 00:40:12,390 ~-~-> 00:40:23,640
1064 nice it and easily got to this 120 big finger. It's easy to understand the
1065 mechanics, when you think about price like this, remove the notion of you have
1066
1067 215
1068 00:40:23,640 ~-~-> 00:40:31,440
1069 to have the right swing high and the right swing low. No, you don't. You don't
1070 need that. You need to know where you are in terms of valuation. What's the
1071
1072 216
1073 00:40:31,440 ~-~-> 00:40:46,320
1074 price at? Think about this over here, this axis on your chart is the most
1075 important thing. Then this one down here, it's time when those two agree. And a
1076
1077 217
1078 00:40:46,320 ~-~-> 00:40:56,550
1079 bias is in play. In other words, are you bullish or bearish? There has to be a
1080 stage. Okay, what makes the setup or condition bullish or bearish? That's where
1081
1082 218
1083 00:40:56,550 ~-~-> 00:41:05,880
1084 the hardest work for you is? Because the entry patterns are the easiest, the
1085 easiest, the hardest thing is for you to determine should you be buy or should
1086
1087 219
1088 00:41:05,880 ~-~-> 00:41:17,850
1089 you be a seller and stay in that camp until your setup comes? period. Simple as
1090 that. Now we're going to take this idea. And we're going to switch it to when
1091
1092 220
1093 00:41:17,850 ~-~-> 00:41:30,990
1094 things are bearish. And I'm gonna look at this little point right here. Now if
1095 we were looking at classic Fibonacci application, here's a swing high. And we'll
1096
1097 221
1098 00:41:30,990 ~-~-> 00:41:40,770
1099 put it on the high here, down to the low, didn't even get back to the 50 level,
1100 or equilibrium would be 62 is up here. So how can you get a sell signal here?
1101
1102 222
1103 00:41:41,850 ~-~-> 00:41:53,430
1104 Think about price from an algorithmic standpoint. What price did it just leave?
1105 with energy? It left the 120 big figure. So it left the 120 big figure traded
1106
1107 223
1108 00:41:53,430 ~-~-> 00:42:13,710
1109 down to 119 50. Where should your fit be placed? on 120. So you have 1951 20,
1110 boom 70.5 level, there's your optimal trade entry. I know right? Folks, it's not
1111
1112 224
1113 00:42:13,710 ~-~-> 00:42:23,790
1114 about picking the right swing high. Right, swing low. It's about understanding
1115 what price is doing. It's all in open high, low and close. What is the price
1116
1117 225
1118 00:42:24,540 ~-~-> 00:42:36,570
1119 it's working off of right now? I gave you four price points, 00 levels, 50
1120 levels, 20s and 80s. It's as simple as that there's your support resistance. The
1121
1122 226
1123 00:42:36,570 ~-~-> 00:42:47,610
1124 thing you have to know is where is the bias? Is it bullish or bearish? When you
1125 know these things, and you apply it, you will see things that no one else sees.
1126
1127 227
1128 00:42:48,150 ~-~-> 00:42:59,940
1129 And no one in the teaching circuits teaches this. It's mine. This is the
1130 byproduct of having an insane interest in knowing what price is going to do. And
1131
1132 228
1133 00:43:00,600 ~-~-> 00:43:08,040
1134 having a degree in something that couldn't make money with I went to school to
1135 learn to be a computer programmer. I've never received a paycheck one time doing
1136
1137 229
1138 00:43:08,040 ~-~-> 00:43:19,320
1139 that. But I've received huge paychecks by way of using this information and
1140 thinking about things from an analytical standpoint and trying to formulate
1141
1142 230
1143 00:43:19,380 ~-~-> 00:43:35,730
1144 analytical and algorithmic approaches to deciphering price action. So some more
1145 examples here. If you look at how price is moving, okay, we left the 120 went
1146
1147 231
1148 00:43:35,730 ~-~-> 00:43:50,130
1149 down to 1950, down to 19. Big figure swept through 1850 fell short of 1820.
1150 Okay, so we fell short of 1820. So are they supporting that price level?
1151
1152 232
1153 00:43:51,510 ~-~-> 00:44:02,430
1154 Well, they showed a willingness to go through a short term high here. So even
1155 though it never touched that level, and showed a strong reaction, your broker
1156
1157 233
1158 00:44:02,460 ~-~-> 00:44:14,580
1159 may not have that low touching this institutional level at 20. I still would use
1160 that I would use that reference point. So let's take a look at applying the fib
1161
1162 234
1163 00:44:16,740 ~-~-> 00:44:29,490
1164 on here 1820 and this is the part that's going to seem like form fitting, okay.
1165 But the question is going to be this when you're looking at these levels, the
1166
1167 235
1168 00:44:29,490 ~-~-> 00:44:40,560
1169 questions I asked myself is, is the level being worked up and down around it and
1170 then did it leave it the price get away from it energetically above it, you
1171
1172 236
1173 00:44:40,590 ~-~-> 00:44:48,990
1174 know, moving bullishly away from it or barely moving away from it because it's
1175 going to give you a tip as to what the algorithm is trying to do reprice higher
1176
1177 237
1178 00:44:48,990 ~-~-> 00:44:58,080
1179 or reprice lower. Now also, I'm also determining whether there's a willingness
1180 to get down to that level and if it fails to get to a level going up to it or
1181
1182 238
1183 00:44:58,080 ~-~-> 00:45:09,540
1184 going down to it. I will still Use that level because it's being defended. The
1185 algorithm is trying not to go beyond that price point. The reason why you're
1186
1187 239
1188 00:45:09,540 ~-~-> 00:45:19,320
1189 going to struggle with this is because you have to submit the idea that your
1190 retail account may not show the price level itself. But when you put these
1191
1192 240
1193 00:45:19,320 ~-~-> 00:45:30,390
1194 levels on your chart, it will help you decipher what price is, in fact, probably
1195 doing. Now, you may have expected price to hit that level. Okay. And it made it
1196
1197 241
1198 00:45:30,390 ~-~-> 00:45:38,310
1199 ugly, I probably would have been expecting that same thing that occur here. But
1200 when price reverses, and trades through the short term swing high here, when I
1201
1202 242
1203 00:45:38,310 ~-~-> 00:45:47,340
1204 see that I know that they defended at 20 level, and nothing's changed. It's the
1205 same thing as if you were looking for the setup to occur. Like after the fact
1206
1207 243
1208 00:45:47,340 ~-~-> 00:45:54,930
1209 here, it went above it. Okay, great, I'm going to look for a buy signal on the
1210 same context that I just framed, the earlier buy for this. So we're going to
1211
1212 244
1213 00:45:54,930 ~-~-> 00:46:11,190
1214 anchor our fed right on the 20 level, draw it up to this 1980 level because
1215 price did hit it and had a reaction off of it. Now watch closely. I'm looking at
1216
1217 245
1218 00:46:11,220 ~-~-> 00:46:12,450
1219 the price level.
1220
1221 246
1222 00:46:18,300 ~-~-> 00:46:29,160
1223 jumped on my platform to that low I gotta make sure it doesn't touch that. Okay,
1224 so we're on the 1820 level, up to the 88 level cuz it traded traded to it and
1225
1226 247
1227 00:46:29,160 ~-~-> 00:46:39,210
1228 reacted. So in price comes back down here, this is a buying opportunity right
1229 there. And we can start looking for these targets here. Okay, Brian, for this
1230
1231 248
1232 00:46:39,330 ~-~-> 00:46:49,560
1233 old high. Let's just watch and see what happens in price, using institutional
1234 price levels, not swing highs and swing lows on price, not stressing about,
1235
1236 249
1237 00:46:49,710 ~-~-> 00:46:56,370
1238 well, you know, there's certain educators out there that cherry pick and they
1239 put this stuffing Tom, I'm gonna put that at rest with me, because it doesn't
1240
1241 250
1242 00:46:56,370 ~-~-> 00:47:04,410
1243 work with me. That does not apply to me. I'm not saying he did associate that
1244 with me. I'm saying just in case you did. Okay, I want you to know that there's
1245
1246 251
1247 00:47:04,410 ~-~-> 00:47:14,790
1248 absolute science behind where I put a fit bat. Price meanders goes forward and
1249 look at the reaction right there. Beautiful. That's a buying opportunity as
1250
1251 252
1252 00:47:14,790 ~-~-> 00:47:25,620
1253 well. And what's resting right here. Equal highs, price should react to go where
1254 boom, clear that out. Under underlying premise behind the hump market price is
1255
1256 253
1257 00:47:25,620 ~-~-> 00:47:40,950
1258 it's bullish still. Boom, boom, hits it, it's over. This is what I'm talking
1259 about. When you have to look at order flow, I'm not using these gimmicky things
1260
1261 254
1262 00:47:40,950 ~-~-> 00:47:49,380
1263 that is there in fashion right now. You know, just like supply and demand was in
1264 fashion about five, six years ago. And you know, people still have faith in
1265
1266 255
1267 00:47:49,380 ~-~-> 00:47:57,330
1268 that. But I slice and dice that theory too, because they have limitations on it
1269 that don't make sense. Don't cut through candles, you have to cut through
1270
1271 256
1272 00:47:57,330 ~-~-> 00:48:06,390
1273 candles to get context in the market, you have to know certain things. And if
1274 you start putting parameters on that says you can only look back to this price
1275
1276 257
1277 00:48:06,390 ~-~-> 00:48:16,830
1278 point here and never cut through a candle at this, that doesn't make any sense.
1279 Because you'll never understand a real stop rate. Okay, or a run on a key level.
1280
1281 258
1282 00:48:16,920 ~-~-> 00:48:28,680
1283 If you don't cut through candles, and supply demand teaches that you can't do
1284 that. So let me take that off. We're going to take another couple more examples
1285
1286 259
1287 00:48:28,680 ~-~-> 00:48:36,540
1288 here. And I'll end this video because it's getting really long winded. But the
1289 idea is just to stimulate your thought processes behind it. It's not an absolute
1290
1291 260
1292 00:48:36,540 ~-~-> 00:48:48,300
1293 science for you, as it is for my mentorship. Okay, I'm just giving you examples
1294 of how it is I'm challenged, it cannot be rivaled by any other retail approach.
1295
1296 261
1297 00:48:48,510 ~-~-> 00:48:58,080
1298 If you want to put a Fibonacci on your chart, do it with this mind. And I'm
1299 telling you, you will start looking like a wizard, you'll see things that no one
1300
1301 262
1302 00:48:58,080 ~-~-> 00:49:08,130
1303 else is talking about. And you'll be pulling trades out of the marketplace that
1304 no one else would be doing either price keys off of the 1850 level again, I'm
1305
1306 263
1307 00:49:08,130 ~-~-> 00:49:18,420
1308 not going to the swing low. I'm going right off to the level itself. Okay. And
1309 we're going to go right up to the 1920 level. Boom optimal trade entry. So
1310
1311 264
1312 00:49:18,420 ~-~-> 00:49:29,790
1313 forget all this safe didn't even see this. They didn't worry with it. You want
1314 to be a buyer. No problem. We can capture the buy here. Okay. Same thing we want
1315
1316 265
1317 00:49:29,790 ~-~-> 00:49:37,980
1318 to look for projections on price once starts to move out if we take out this
1319 swing high, which is the old one. How far can it go up to? Here's a 200
1320
1321 266
1322 00:49:37,980 ~-~-> 00:49:49,440
1323 extension. Boom, beautiful. On done completely decimated the euro dollar with
1324 that. Now, did I give you something retail here? Is there any trend lines on it
1325
1326 267
1327 00:49:49,440 ~-~-> 00:50:01,050
1328 any moving averages any stochastics? No, I use the Fibonacci but I used it in a
1329 way that we can grade institutional price swings the markets Move from an
1330
1331 268
1332 00:50:01,080 ~-~-> 00:50:11,550
1333 algorithmic standpoint, they're predictable, you can make a science out of why
1334 it should go where it should go. And where you should get in at getting in is
1335
1336 269
1337 00:50:11,550 ~-~-> 00:50:20,340
1338 the least important, you have to understand what side of the marketplace it's
1339 going to go for the up or the down the bullish or bearish. Okay. So that means
1340
1341 270
1342 00:50:20,340 ~-~-> 00:50:28,140
1343 you need to know what the draw is on price. Well, at this point here buying
1344 here, the draw is above this old high, that's where their buy stops are going to
1345
1346 271
1347 00:50:28,140 ~-~-> 00:50:38,580
1348 be. So even though this is suggesting this is a good level to take profit at,
1349 and it's a real nice reaction there and trades back down. Watch what happens
1350
1351 272
1352 00:50:38,580 ~-~-> 00:50:47,520
1353 again, in this little money price action in here. You probably don't know where
1354 I'm going with it. It'll be the last example for this presentation. We have
1355
1356 273
1357 00:50:50,970 ~-~-> 00:51:01,290
1358 price reacting in sweeping through the 1950 level, and then rallying up then
1359 coming back to a shallow retracement and falling short of getting to the 1980
1360
1361 274
1362 00:51:01,290 ~-~-> 00:51:10,500
1363 level. Forget all that. Where's the price points? 19 5020 5200 PIP range.
1364
1365 275
1366 00:51:11,970 ~-~-> 00:51:22,920
1367 But right on the price levels themselves. Right there. Okay. So we're anchoring
1368 off this level, not the swing low, not the wick. If I were to put this on here,
1369
1370 276
1371 00:51:23,040 ~-~-> 00:51:28,620
1372 why the hell did you do that ICT? You would have been thinking Oh, he put it
1373 back here because this this is that level here night you would have never
1374
1375 277
1376 00:51:28,620 ~-~-> 00:51:40,290
1377 figured this out. You never would have figured this out. Okay. Looking at price,
1378 reacting at 1950. That's the level it was working the algorithm went to that
1379
1380 278
1381 00:51:40,290 ~-~-> 00:51:53,250
1382 level but swept it. So the real key work is 19 mid figure. Okay, so 1950 it
1383 rallies goes up to 2050 or 20 min. Figure then retraces back down. What's the
1384
1385 279
1386 00:51:53,250 ~-~-> 00:52:05,550
1387 hitting right here? 62% retracement level, boom. Well, also, is it happening?
1388 Order block. Today got two things going for you. institution order flow, bullish
1389
1390 280
1391 00:52:05,550 ~-~-> 00:52:15,000
1392 order block, optimal trade entry, buy it, it's going to go above this high for
1393 the stops is your fib target and look at the bodies of the candles very close to
1394
1395 281
1396 00:52:15,000 ~-~-> 00:52:23,580
1397 what would be acceptable as a target. And yes, it wicks through it a couple
1398 times. But that does not concern me. Okay, I want to know these levels here.
1399
1400 282
1401 00:52:24,120 ~-~-> 00:52:31,080
1402 Okay. And this is a buying opportunity that no one would look at this and say
1403 that's an optimal trade entry because they look at just my tutorials. They don't
1404
1405 283
1406 00:52:31,080 ~-~-> 00:52:40,260
1407 have this insight. But now you have it. Okay? If you want to learn things like
1408 this, and you want to apply certain higher level theories that I don't make a
1409
1410 284
1411 00:52:40,260 ~-~-> 00:52:49,860
1412 will ever make them public beyond what I've done here. The mentorship is for
1413 you. If you're not wanting to get to this level of insanity in terms of
1414
1415 285
1416 00:52:49,860 ~-~-> 00:53:01,350
1417 understand what price is going to do, then you just stick to the free tutorials
1418 and that'll be fine. But I just wanted to kind of like answer a response I got.
1419
1420 286
1421 00:53:03,870 ~-~-> 00:53:13,290
1422 Well, I didn't really get it. But I heard it in a video by another educator. And
1423 I just wanted to put my two cents in because I get a lot of opinions expressed
1424
1425 287
1426 00:53:13,350 ~-~-> 00:53:22,500
1427 about me and about my methodology. And many times it's done by way of ignorance,
1428 they don't really know what they're talking about. And they're grading me or
1429
1430 288
1431 00:53:22,500 ~-~-> 00:53:32,610
1432 suggesting that I'm doing certain things when they have clearly no idea what I'm
1433 doing. And I'm going to leave it at that. Okay, but there's so many examples in
1434
1435 289
1436 00:53:32,610 ~-~-> 00:53:41,700
1437 here. Okay, that it's crazy. Like I'll give you one more because I just want to
1438 do it. We have a swing high here. Okay, and we have a swing low here. Really
1439
1440 290
1441 00:53:41,700 ~-~-> 00:53:50,580
1442 nice sell off here. So what was the catalyst behind it? Well, if we put our fib
1443 obviously the market has shown a willingness to break down up here and I go
1444
1445 291
1446 00:53:50,580 ~-~-> 00:53:59,850
1447 through tutorials showing you that now the swing high swing low camp will do
1448 this. Okay, great. It gives you 60% Jason Oh, great. Nothing wrong with that.
1449
1450 292
1451 00:54:00,030 ~-~-> 00:54:10,260
1452 Okay, but in my mind what I'm doing is I'm doing my fib at the level itself at
1453 20 1920 I'm dragging it down
1454
1455 293
1456 00:54:15,270 ~-~-> 00:54:25,830
1457 to 1920 so 2020 to 1920 Why am I putting it down here there's no there's no
1458 reference to this swing boy Michael it doesn't make any sense. This is stupid.
1459
1460 294
1461 00:54:26,340 ~-~-> 00:54:35,880
1462 You don't know what you're doing? Sure I do. Price done what it reacted by going
1463 higher and failing to get to 1920 so what's the algorithm doing is defending
1464
1465 295
1466 00:54:35,880 ~-~-> 00:54:45,390
1467 1920 Well, how do I know that because it took a swing high. Oh well wait a
1468 minute Michael isn't this one of those breaks the swing high comes back down
1469
1470 296
1471 00:54:45,420 ~-~-> 00:54:53,310
1472 optimal trading shrink by No. Because the context is the markets broken down
1473 back here. That's why some of you look for optimal trade entry Long's and you
1474
1475 297
1476 00:54:53,310 ~-~-> 00:55:03,510
1477 don't get them. You get these smashed through and Oh no. How do I know? You have
1478 to know what the market is showing you By context, context is, what's the
1479
1480 298
1481 00:55:03,510 ~-~-> 00:55:12,990
1482 storyline behind price? Is it bullish or bearish? And has it reversed? Because
1483 if it has reversed, well, what's the reversal here, price went above an old
1484
1485 299
1486 00:55:12,990 ~-~-> 00:55:23,610
1487 high, fail to go higher, and came back down, find the reaction low and between
1488 the breaks that it's bearish until it resumes going higher again. So this whole
1489
1490 300
1491 00:55:23,610 ~-~-> 00:55:32,190
1492 model here is bearish. So my optimal trade entry would be framed on something
1493 like this, and it takes me deeper. So I'll get a slightly higher entry price,
1494
1495 301
1496 00:55:32,550 ~-~-> 00:55:42,810
1497 then if we were to use this high to this low, and look at the consolidation of
1498 price action, see the bulk of the volume in there, you're not seeing that, okay,
1499
1500 302
1501 00:55:42,810 ~-~-> 00:55:53,490
1502 now, look how much time the the institutions were given the opportunity to get
1503 short in here, before the big move drop, versus something like this. If you just
1504
1505 303
1506 00:55:53,490 ~-~-> 00:56:05,040
1507 do this, retail, okay, gets one to three chances. Maybe if you want to count
1508 this here, how many times you really want to hit that it's 62. And you know,
1509
1510 304
1511 00:56:05,040 ~-~-> 00:56:13,200
1512 you're probably not going to do it, you're going to want to get up here and
1513 deeper, and get some kind of a better fill. That's not what I'm doing. I'm
1514
1515 305
1516 00:56:13,230 ~-~-> 00:56:30,960
1517 looking for reasons to justify this openly and outwardly to the public. But many
1518 times my personal trades are framed with what would otherwise be seen as no
1519
1520 306
1521 00:56:30,960 ~-~-> 00:56:43,140
1522 basis whatsoever, but there is a rhyme and reason behind it all. Look how much
1523 time price spends in that 62 to 70.5 level, right in here. Lots of opportunity
1524
1525 307
1526 00:56:43,140 ~-~-> 00:56:52,350
1527 to get short there. And then finally, boom, to be Cavan. And you have your
1528 targets, boom, 60, I'm sorry that target two hits it, but also reaches more
1529
1530 308
1531 00:56:52,350 ~-~-> 00:57:03,270
1532 specifically for the 1850. Price wants to go to these levels, folks, it's not
1533 random. Now, obviously, I did not give you do this every single time I've given
1534
1535 309
1536 00:57:03,270 ~-~-> 00:57:15,150
1537 you an idea, because that's what started back in July 10. of 1994. This is what
1538 I wanted to start looking for evidences of. And it just so happened that it
1539
1540 310
1541 00:57:15,600 ~-~-> 00:57:25,380
1542 provides a wonderful opportunity to also segue into answering in addition with
1543 greater detail why Fibonacci is shouldn't be so forced on swing highs and swing
1544
1545 311
1546 00:57:25,380 ~-~-> 00:57:33,510
1547 lows, because that's not the that's not the magic behind it. Okay. And the
1548 reason why the Fibonacci is even showing a willingness to have a profitable
1549
1550 312
1551 00:57:33,780 ~-~-> 00:57:42,480
1552 signal, if you want to call it that. It's just using a reference point of
1553 overbought and oversold. That's all I use the Fibonacci for. I don't need it for
1554
1555 313
1556 00:57:42,480 ~-~-> 00:57:51,300
1557 anything other than that. So I go into great detail about that in the
1558 mentorship. But if you want to trust the fact that the Fibonacci does all the
1559
1560 314
1561 00:57:51,300 ~-~-> 00:57:57,540
1562 work, but you want to use it like this, and have the daily buys understood, then
1563 that's fine. You can be a subscriber in that view and it won't hurt anything,
1564
1565 315
1566 00:57:57,570 ~-~-> 00:58:06,720
1567 it'll still give you the same result. But I know some of you are just really
1568 really keyed up about wanting to know everything there is that I know and these
1569
1570 316
1571 00:58:06,720 ~-~-> 00:58:17,820
1572 types of concepts and things they get taught only in the mentorship so and you
1573 will be able to see a lot of opportunities that would otherwise evade you. And
1574
1575 317
1576 00:58:17,820 ~-~-> 00:58:20,040
1577 until next time, I wish you good luck and good trading