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Version 1.1 by Drunk Monkey on 2020-12-09 06:16
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3 ICT: Okay, so we're looking at the British pound. Today's action was pretty
4 eventful, not surprising. We were looking for this last night on our mentorship.
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8 But I mentioned on Twitter today that 120 20 had a lot of work on that level.
9 And if you got to a daily chart and drop a horizontal line, you see what I mean
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13 by that we had some heavy flows that come around, just above and below this
14 level. But essentially, it's been the institutional 128 20. Even in here, we've
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18 had a lot of activity when we drop down to a four hour chart, you'll see a lot
19 more fun, more obvious. You can see how it's been working this level back and
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23 forth, back and forth, gravitating back to gravitating back to it. We had a nice
24 sell off yesterday. And it was a continuation of the theme I gave on Friday last
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28 week looking for the break on the trend lines, the folks that like to use those
29 for their their setups and such the move that back up to the 128 20 level then
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33 rejection we saw come back one more time and then ultimately ramped it one more
34 time above the short term high here and then ran for the old daily low not only
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38 went below it a little bit by one or two pips I think we see the old low was on
39 this feed, it's 126 63. But the low comes in at 22 I'm sorry 2661. So it's only
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43 two pips below the historical daily high for forex ltds demo account. So if
44 we're looking at the intraday price action, let's drop down into an hourly
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48 basis. Okay, so let me see what has transpired today. I hinted at looking at
49 wolf waves, which I'm not going to teach this concept here because obviously, my
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53 videos are monetized. So it would be hypocritical of me to put the someone
54 else's concept which obviously I mentioned in the past, I did an event. If you
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58 want to learn more about wolf waves, you can go on to Google and do a search on
59 wolf WLF e wave. Or you can look at the street smarts book, by Linda Raskin,
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63 Larry Connors from the 90s, mid 90s herself. They introduced that specific
64 pattern, if you will, and it uses basically, trend lines, okay, now I know, a
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68 great opponent to diagnose support resistance using trend lines. And quite
69 certain I'm going to offend some of you that swear by God, that that's the basis
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73 of why your secret sauce makes you money. But looking at the market as a casino,
74 I know that the odds are likely that trend lines typically are going to fail
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78 more than they're going to help you. So many opportunities to draw a trend line.
79 But when we use proper context, as I hinted at on Twitter this morning, this is
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83 all before the fact. So we're looking at things that happen after the fact now.
84 So this is going out to you, Marcus, your your comments about wanting to see me
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88 do this with candles have it more or less formed yet. You know, I do that just
89 about every single week on Twitter. So this is one more for you. So
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93 I'm going to add in the short trend line segments here. And this pattern for
94 folks that are familiar with classical charting patterns. This is a broadening
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98 pattern or a megaphone pattern. Okay, imagine the person holding the megaphone
99 here and talking into this point, and obviously it fans out further. Now it's a
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103 rather simplistic pattern. You don't see it too many times in price action, but
104 today, it just jumped off the chart with me. So while we were running up in
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108 here, I mentioned that we have speaker talking I think it's around four o'clock
109 in the morning, New York time during the London session. I was talking to
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113 everyone on Twitter, you can go back and look at it. I stated that it was an
114 interesting price run ahead of the speaker and we ran right above that. Short
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118 term high and also right into this area right in here. Now typically retail like
119 the US trend trend lines underneath lows to support or build a theory that it's
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123 an uptrend. And they'll put a diagonal trend line sloping down, touching
124 supposedly reference points that will constitute a downtrend. Now again, without
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128 beating up the whole theory of trend lines, because I've done that many times in
129 the past, this is one time I do agree with trend lines, but not for the sake of
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133 entry, but for the sake of profit taking. So that's the only component about the
134 wolf way that I like. So if this is something of interest to you, you can look
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138 at Google and find the author of the concept himself and study it, and maybe
139 you'll be edified by it. To me personally, back in the 90s, there was a group of
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143 traders that were following me back then. And they knew about what I called
144 hidden trend lines. Now, weights weren't talked about back then. It hadn't been
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148 at least brought to my attention. And it was before the St. Mark's book was
149 published, I'm not stating that the author didn't have it or conceptualized it
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153 before making its way into the book street smarts. And the saying that I
154 personally wasn't exposed to it. At least not prior to street smarts. So, but I
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158 was looking for things to justify the use of trend lines that would be a against
159 the usual use of them. And kind of like the pitchfork idea. Okay, Andrews
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163 Pitchfork. If you look at the concept and look it up on Google, you'll see
164 there's, there's an element to that, that I used back in the 90s. And I didn't
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168 use it long as I just basically dropped, it didn't care too much for but how I
169 grew out of all those things, is I was using pitchforks. And I was using things
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173 like, well, for instance, if you look at the high here, draw that down to here,
174 and slice through all this price data, you'll get this response right there and
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178 keep extending it down, you'll get this. Now it's not so much that it's a entry
179 tool, but more or less a targeting tool. And I just looked at it and refer to it
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183 to myself as hidden trend lines, okay, like a hidden support resistance. I was
184 really enamored by the type two trend following which is basically a reverse
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188 divergence, if you will, there were one sees that now is something that was
189 created by George lane wasn't nicknamed nice was the guy that released that to
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193 the trading community, but George lane because he claims he made the stochastic
194 indicator as well, which he didn't, the it just follows him. And he just gets a
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198 lot of credit for something he didn't really achieve. But nonetheless, I was
199 looking for all these approaches and things and I felt that the wolf wave had
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203 something to offer. But it just to me, it felt like Elliott Wave, you got to
204 count this wave count that wave and ABC and all that good grief, you know, I'm,
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208 I've completely grades Go on, I'm gonna go back all through outlet. So if I
209 can't see it visually, then I'm not interested. So I left and put down the wolf
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213 way. But I'll counter you to study this formation in here, because it has a lot
214 of similarities to it. And that's reason why I prompted everyone on Twitter. And
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218 I mentioned that
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222 120 20 before the fact that had a lot of work there. Okay, so your attention
223 should have been there. And also previous high. So we know that there's a
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227 potential for without this diagonal trend line here. So I just mentioned this in
228 passing. Because I mentioned on Twitter, that was the whole basis for me to
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232 talking about it. But from my standpoint, this right here is the other pattern,
233 which basically stems from that same book, street smarts. So you kind of get
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237 like a little bit of an origins, if you will, of some of my favorite patterns.
238 Now when I say my favorite patterns, I'm not claiming that I created the turtle
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242 suit. I'm not claiming ownership of it. This thought that it was a pattern that
243 was profitable, but more than any other pattern I've ever seen. And that's one
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247 of the patterns I love. It's a stop run. And a stock run could be an exit on an
248 existing trade or it could be a new entry. So with that said, you can see price
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252 did in fact run up in here post, the speaker, London session, it created that
253 whole Carnival like atmosphere where we had this really big run up in here. And
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257 I'm not going to show you or playback the mentorship video but the folks that
258 are in the mentorship Go back and listen to that I'm talking about the cable,
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262 you can see. And here, we're talking about buying the open looking for a run up
263 and a rejection and then selling off into London close into this level down in
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267 here. That's exactly what we see here, I'm going to drop down into a 15 minute
268 time frame. And we'll look at that, from this time perspective, you can see it's
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272 a lot more animated this way. But we have a nice price run here initially for a
273 woman run by stops taken one more time sends it up, breaks down, we have a
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277 market structure break right in here. Okay, and once the structure breaks, we
278 have more more rally up into what bearish order block this is all free tutorial
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282 level stuff. So if you look at the low, it's 128 18. So it could take up to
283 128 20 institutional, but from my personal taste 128 15 would be an ideal entry
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287 point. The high comes in at 120 18 perfect to the PIP as you would expect with
288 ICT concepts. And the market trades off precipitously. We have a liquidity pool
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292 and form of sell stops resting below here, equals or here. So the candling are
293 here. And we have Candyland right over here. And we have the old low on our
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297 chart. So if you don't have these reference points, the charts gonna look well.
298 lackluster, it's not gonna provide any prognostication, or at least give you
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302 some framework to justify an idea or find a context within the price action. So
303 when we have these daily levels, and we have critical intro week highs and lows,
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307 that basis was I was looking for a weaker British Pound been looking forward,
308 the trade below this low in here. Now I'm not convinced that this is obviously
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312 the end of it, because it's just too shallow, I would have run to me, I think
313 this was just a lot of folks taking profits on a logical level on a daily chart.
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317 And I think it would be advantageous for us to study collectively, as a
318 community. If there's any willingness to one go back down below that. But the
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322 idea of trading inside this, I'm gonna drop down to a five minute chart and then
323 a one minute chart and you'll see why I'm going to chart so we have the 128 20
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327 level in here. And price creates a run above it collapses, market structure
328 break, run up again into that bearish order block. Okay, we can sell short
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332 120 805 want to stop, I don't have to worry about buying up here because it
333 could it could have ran continuously. But if I put a stop below the market and
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337 it runs down to my order, then in theory, the work over here is already done.
338 And I'm also getting in line with the institutional order flow and short term
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342 momentum. So you can see all of the price runs in here. Go back and look at
343 Twitter. You can see all of my my exits and such. All of those were capitalizing
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347 on 20 PIP runs. When I was one that got away from me I think I got only I think
348 was 19 pips, it may be 18 pips, but it was real close to it was just shy of the
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352 20 pips. And I got it back with an extra paper to one last piece. But all I was
353 doing was working inside the context that we had already created.
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357 The Daily high up here, okay, and I was aiming for a run into London close down
358 here. Now obviously, if a lot of folks Follow me, and they do their own
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362 services, and I'm quite certain if I say anything on Twitter, and this is gonna
363 sound arrogant, but it is what it is. If I post something about a particular
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367 market, it only takes a second for someone to reword that in their own text or
368 tweet and post it and it looks like they're a rock star. So I kind of keep
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372 things vague and my mentorship knows that I, I fancy dance the entries and my
373 exits for a reason. Not only because I have people wanting to follow me
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377 verbatim, and also because of the folks that are watching. Okay, so if I use a
378 particular broker, I don't want to always be good or always be perfect. I want
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382 to have some muddiness to my entries and exits. Sometimes they might be a little
383 sloppy, sometimes they may load before the fact and always before the the big
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387 ideal exit, okay or the perfect entry, fluff it up a little bit sometimes get
388 into move after it's moved like five pips, and not basically by when it's
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392 raining. Gold face candle. That's what I teach in theory, but because I'm a firm
393 believer that brokers will absolutely start manipulating your feels. Okay, they
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397 can say, Well, you know, do a read, quote, do read, quote, I've experienced that
398 a lot. And if you've ever done any live trading, you can see how frustrating
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402 that would be, because it's going to be done at the most opportune times for you
403 looking for a fill, or an exit, when they're letting price run, because it's
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407 already showing increased volatility. So these are the two reference points of
408 us using internally today. And every time we created an opportunity, I want a
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412 one minute basis. There wasn't an opportunity for me to go short. Now, all I did
413 was worked inside of ranges between this high here, which I believe was the
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417 short term, low risk entry, and could see this as a market maker. So model,
418 okay, consolidation, ran up and sells off. I was anticipating all of the price
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422 moves in here, that would constitute another run lower on 20 pips. So if I knew
423 that this was the likely high the day, and this area right in here was a kind of
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427 a high, probably turning point. And this is where I'm aiming for my target. All
428 I have to do is work within that range and break it down into 10, or 15, or 20,
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432 or 30, Pip ranges, and then I can see how I can enter that. And I don't have to
433 be entering one up close candle, because I'm already in sync with institutional
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437 order flow. Everything is in line, so I don't really care really, I mean, as
438 long as I'm getting in, and my stop is going to be reasonable. what's reasonable
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442 15 pips. So if I'm doing 15 pips to make 20 just to showcase multiple entries
443 and multiple exits, multiple entries, multiple exits, just to show you how easy
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447 it is to capture a weekly haul of 25 to 30 pips just once a week, it's all you
448 got to do, and you build a career with that. Now, obviously, it takes a great
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452 deal of discipline and patience to get to that level, and only be able to focus
453 on one specific criteria are set up. But this is just one more evidence as to
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457 the principles that I teach and free tutorials. That's all I showed you here.
458 Okay, we were looking at higher timeframe premise. We were looking for a Judas
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462 swing. This was a little bit of a exaggerated or extended stop, run. But if you
463 are in my mentorship, go back and listen to it, you'll hear that we're going to
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467 be studying the open close relationship, buying on the open. It means running up
468 looking for a rejection, then selling off Allah, Judas swing, and then trading
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472 lower into London close targeting this level here. You can't get any better than
473 that script. It's laid out perfectly before the fact and here it is. Now what do
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477 we do with this going forward? We just basically wait. You sit on your hands
478 because it's a non farm payroll week. And I teach all my students to try to
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482 capture your pound of flesh before Wednesday's New York open and then sit on the
483 sidelines and spectate only don't speculate on Wednesday afternoon, Thursday,
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487 all day or on non farm payrolls. So hopefully you found this insightful and I'll
488 talk to you next time. I wish you good luck in the trading