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Version 1.1 by Drunk Monkey on 2020-12-09 06:17
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3 ICT: Hey, folks,
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7 it's been a while since I've put something up on my YouTube channel. So it's
8 nice for you to stop by and take a look at what I'm going to share with you
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12 today, I want to talk briefly, it's not gonna be a very long video, it's
13 probably going to be something new for most of you that are familiar with me.
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17 But the the concept of support and resistance, and the notion that old support
18 broken becomes resistance, and resistance broken becomes support all that stuff,
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22 I'm going to ask you to put that aside for a moment.
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26 I'm also going to ask you to suspend your belief in where price has reacted to
27 before as support, it will offer another level of buying put that aside as well,
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31 too. Okay. I kind of like want to introduce a concept that's prevalent
32 throughout my material. And it's the the notion of seeking liquidity, the market
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36 doesn't trade, whether you want to accept this at this stage in your development
37 or your career, or not. The truth is this. Price patterns, indicators, retail
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41 logic, all of those things are not catalysts that make price move. There's no
42 buying and selling pressure, there's no supply and demand. It's 100%.
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46 Engineered, okay. So, especially when it comes to the foreign exchange market,
47 which is more or less my specialty since 2006. If we are to understand what I
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51 mean by that, I'm going to take a sample set of price action. And if you pay
52 attention, I promise, you're going to learn some things here that you might not
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56 have expected to learn. When we look at price, and we studied price charts,
57 especially if you're a new person that's just sitting in on studying price and
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61 the markets and trading and such, it can be a rather daunting task. And true,
62 very intimidating. Because all of these candles here represent one particular
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66 trading day 124 hour interval where it started, where it stopped trading for
67 that particular 24 hour period. If I were to ask you, where the most significant
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71 price move has taken place, where would you look. Or some of you would say this
72 move here down. Some of you would say this move here, down. Others might say
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76 this move here up inside of this entire fractal. That's the actual move. So
77 what's happening is over here, and I'm believing I'm going to be very honest and
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81 tell you that this is an oversimplification, simply because I don't want the
82 video to be too long. And I don't want to bore you. And I'm probably boring some
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86 of the cynical people here already. But follow, I want you to look at the run
87 from this low all the way up to here. Now I'm not going to outline all the
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91 things that led to all this because it's not that important factor. But I want
92 you to look at how if we look at the idea of support and resistance, the idea
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96 that price has for whatever reason, and I'm not going to go into the catalysts
97 as to what made this low here form and run up to here. I'm going to cover why
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101 this area here, which acted as what everyone would see as a form of retail
102 support. Okay, or classic support and resistance theory, price for whatever
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106 reason came down, and it stopped and started going higher. Now there's going to
107 be a crowd that will readily come in and say, Oh, this is part of a harmonic
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111 pattern or it's a demand zone, or it's a order block. Or it's a Fibonacci
112 harmonic pattern. something of that nature. Others may look at that and say
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116 that's an Elliot wave pattern, it led to a rally. All of these ideas are
117 useless. without context, there has to be a narrative that's understood.
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121 Otherwise, how house price determining which retail logic or theory that causes
122 price to move if that's what you're subscribing to, because there's a myriad of
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126 different disciplines in the marketplace, as I mentioned a few of them just a
127 moment ago. Why is it and how is it determined by price
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131 Which one is going to follow at any given time? Because not all of them agree.
132 Once in a while, there'll be an agreement on one or two, maybe three different
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136 types of disciplines. But what is it that makes price elect to follow Elliott
137 Wave today, or supply and demand or order blocks. It's not the discipline or
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141 theory. It's the narrative that's missing from what educators are trying to
142 convey, because 99% of them don't have the narrative. They don't know, they can
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146 only give you examples on the far left side of the chart, and talk about what's
147 already happened. Now, right away, some of you're saying, well, you're about to
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151 do that right now, like you've always done, Michael. Well, that's because you're
152 outside the circle. I do these things before the fact. And I explained them, and
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156 I draw my students attention to specific things that they're trained to see and
157 observe. I prompted all of my followers on Twitter this week, to monitor the
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161 Australian dollar. And, obviously, that's what we're looking at here. And I want
162 you to consider this low. Okay, and just forget the idea of support resistance.
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166 Forget that. If this price rally started here, the natural assumption would be
167 when it gets down to that level, again, it should bounce again, this should
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171 provide you a trade to go long, I have over 2000 plus books, many of them are
172 regurgitated retail nonsense that does not promote or carry one, two,
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176 consistency, accuracy, none of those things, in fact, they promote confusion.
177 And if you are out in the industry now trying to chase, the new author, the new
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181 writer, the new educator, chances are you're wasting your time and your money.
182 And I'm just going to be very blunt and say it. If anything that you're
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186 following along in terms of quote unquote market maker, you're actually getting
187 a derivative of my 19 $96 million trading plan. And that was coached and taught
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191 to a small group of people. And much like everything else I've done over the
192 years. They've taken that and watered it down and revamped it and try to create
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196 something new out of it. But when you know, what's yours, you can see it. And
197 prior to 1996 no one was ever talking about market maker this and market maker
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201 that it was me, I was when I go online. Everything about market maker concepts
202 being taught to any retail audience is mine. Now, they may have added
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206 indicators, and add all kinds of retail fluff to what they're saying. But the
207 original ideas that I shared relative to market making, were largely founded in
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211 1996, lecture notes, I started trading 1992, November 5, matter of fact, in
212 1992, that was my my journey began. So I've been doing this for a long, long
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216 time. And I've seen a lot of folks come into this industry and tried to pretend
217 to be knowledgeable, try to be helpful, but in fact, they're actually de railing
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221 the very people that they're pretending to help. And the folks that are paying
222 attention to these people don't know any different because they don't know what
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226 they need to know. And by not knowing what they need to know, that's harmful to
227 them. So, if we look at this low here, and we had the idea that if it comes back
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231 down to that level books, retail support resistance, all the you know, the
232 trading education's centers and hubs for for trading, whether it be assets for
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236 stock trading, or commodity trading, or Forex, or crypto even. The idea is, this
237 is going to be a possible trading opportunity, because it's a daily timeframe.
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241 So therefore, we should get a reaction there. Sometimes that happens. Not all
242 the time. What I like to do is attack those individuals that believe in that
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246 theory. I want to take a retail idea, because if we if we classified speculation
247 into two groups, they're smart money, those individuals that are informed, they
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251 don't do what the masses do. They diverged from what? Well, the average person
252 or what we'll call street money. It's commonly referred to as dumb money.
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256 I don't mean to be derogatory, but I'm just using the commonly bandied about
257 terms, smart money. Their idea that this low is there's individuals that bought
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261 that and large institutional funds That have enormous amount of volume to have a
262 long term trending model, they will have a large pool of liquidity in the form
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266 of sell stops resting below that low. They're not actively trying to trail their
267 stop loss up every five points, or pips, because it's made a new equity high for
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271 them. Because their positions are so large, and their positions are meant to be
272 a long term time horizon. They allow trends to move against them a lot. And it
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276 takes a great deal of change for those models to be taken out, and then maybe
277 they'll reverse maybe they'll wait for more information, but they're not trying
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281 to turn on a dime, like a short term day trader or an intraday scalper, they
282 can't do those types of things, they don't have that luxury because of the
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286 protocols in place for long term hedge and institutional trading. They have
287 protocols they have to follow. And they allow the market a lot of breathing
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291 room, okay, so they're not trying to choke or strangle their positions by
292 jamming their stop losses up real tight, which is a common retail pitfall. So I
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296 want you to think about the large pool of liquidity that rests below here, okay.
297 And there are people in this industry that try to teach and they say that they
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301 don't go after your stock, there is no day quote, unquote, day. Well, there used
302 to be a day, okay, there used to be a collective entity, they were people, and
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306 they would purposely run stops, okay. And if you ever talk to a floor trader,
307 from the Chicago Board of Trade or Chicago Mercantile Exchange, they'll tell
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311 you, that's exactly what took place, day by day, every day, day in and out. Over
312 time, as the industry has evolved, we moved more and more away from the human
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316 element, much like every other industry in the world, to an automated artificial
317 intelligence. And the majority of how markets are priced and delivered to you
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321 now is all from an algorithm. And these algorithms were written with a lot of
322 old school retail, attacking theory and loads where the liquidity would be, or
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326 where the sentiment would be poised, bullish or bearish. They would make a run
327 on that because 90% of large funds, okay, or hedge funds actually use what is
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331 commonly regurgitated as retail logic. Now, you're probably thinking, well, if
332 that's true, Michael, then you said, you know, dumb money is the people that
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336 don't follow these ideas. They do what everyone else is doing. The large hedge
337 fund managers and folks that work on these long term trend models, they are not
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341 thinking like a retail trader by trying to get in every single position, trying
342 to trade every single day trying to manage their position with ultra tight
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346 stops. Okay, so while the logic is very similar in a lot of ways, the separation
347 and distinction between the two that have large hedge fund managers and retail
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351 street money is that retail street money can afford in their mind to take a
352 loss. So they do everything they can to try to avoid taking a monetary loss in
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356 trading. And by doing those very things by jamming their stop loss too tight, or
357 not using a stop loss right away and then letting the position go against them.
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361 And then all of a sudden, they either get stopped out because of a margin call
362 or they just for lack of a better words throw their guts up because they can't
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366 take it anymore. And they blow their account out. Those characteristics that
367 lead tend to get into a trade may be very similar to maybe exactly what these
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371 long term hedge fund managers are using for their trend models. But retail
372 traders many times will take characteristics of a specific approach or trading
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376 style like day trading or long term position trading. And they try to force the
377 characteristics of day trading inside of a long term trending model. or worst
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381 case, they're using a short term trading strategy. And they went into the idea
382 that this is a good short term intraday scalp. And because it moves really quick
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386 for them, they fall in love with it. And they say, Well, now this is going to be
387 a six month trade. And they let that one or turn into a loser. And if you've
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391 been trading for any length of time, you know exactly what that feels like.
392 Because all of us have fallen victim to that. And back in the 90s. I did a lot
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396 of that in my development.
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400 So I want you to think about the individuals that bought here, okay, yes,
401 there's an opportunity for two stops to be held to this low and this low. But
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405 right in here, I want you to think about that because this is the origin of this
406 entire price run. This is where all the largest pool of liquidity is going to
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410 be. Now, when folks say they don't get your stock, they don't reach for your
411 stuff. That's a lie this. These are people that don't know they're talking
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415 about, okay, they don't have any idea what they're talking about. They're just
416 trying to Pretend the elephant in the room, but the elephant is standing right
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420 there, whether they want to acknowledge it or not. And the elephant is, the
421 markets move on the basis of liquidity. They're either engineering liquidity, or
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425 they're going after open float, open float is the existence of buy side
426 liquidity. For instance, above an old high here, that's buy side liquidity,
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430 anything above that old high would be in the form of buy side liquidity or buy
431 stops, those buy stops are in two different categories. One, protecting a short
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435 position, or entering a new long patient on a breakout below an old low is sell
436 side liquidity. And that's gonna be in the form of two camps, sell stops for
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440 long position protection, or sell stops to break out with a new short position
441 on weakness. Smart Money will look at this low and target the liquidity below
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445 this low. Why because of the magnitude of the move that took place. So they know
446 there's a large footprint of fund level liquidity. When I say and when I talk
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450 about, they're gonna make a run on stops. I'm not talking about the traders over
451 and Atlanta, okay, or FCM. Okay, I'm not talking about those individuals, I'm
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455 talking about large institutional flows, where their stops are going to be. This
456 is an area that I drew everyone's attention to on Twitter. I asked everyone,
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460 where's all the dollar reaching for. And I prompted I wanted to look at the
461 daily chart. And this was the old low that anyone that's been studying with me
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465 will know right away, this is a pool of liquidity would be resting. And even
466 though the market already started coming down, right about here, I saw I was
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470 talking about everyone, following him looking at Aussie dollar. Now there are
471 times when traders should not be chasing the market. And this is going to seem
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475 like someone that's probably just started last month, okay. Or last summer, they
476 started trading, and he read 10 books, and now they're going to be in here
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480 looking to correct me, you're chasing price or you're not chasing anything,
481 okay, I'm telling everyone exactly what the markets going to do before it does
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485 it. And I'm giving you the logic. But I have to get your attention to a specific
486 framework in the marketplace, and focus your attention on that framework alone.
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490 It was this low. Now when I sit down and I start talking about the markets,
491 invariably, if someone was a daily chart up, they don't know, really what I'm
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495 looking at, unless they spent any time with me. All these candles back here, all
496 these highs and lows, they're gonna look at that. And they're gonna think that
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500 these things are factors for right now. And they're not what I was framing is
501 this. So the entire fractal that was of importance. And that was salient to the
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505 discussion for my Twitter tweets, was this low here, forget anything prior to
506 it. Okay, we're only looking at this. So as the market was starting to go lower,
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510 my attention was on this low and how we would attack it. So what's resting below
511 that? Sell side liquidity in the form of sell stops, it matters not how many are
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515 trying to go in the market to go short. And it does not matter how many are
516 going out of the market or the long position being stopped out. It's not an it's
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520 not important, not impactful, it just means that we understand. And we don't
521 overthink the fact that there's going to be sell side liquidity resting below
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525 that. Now there are ways to determine the majority of what that is, but it's
526 based on context and narrative prior to this low, which is beyond the scope of
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530 this discussion. So I want you to know that this level here they have on the
531 chart when I drop down into a lower timeframe, that's this particular low. Okay,
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535 so if we look at the actual low on that candle, it comes in at 6754. So 6754 and
536 that's it, we are going to make sure we have on our chart to the PIP. Alright,
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540 so now everything is calibrated route relative to this low. So I'm going to drop
541 down into a 15 minute timeframe, we'll continue our discussion. Alright, so here
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545 is the 15 minute time frame of Australian dollar. And you can see that we have
546 Monday's trading here. I don't have the entire high of Monday, it's not
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550 important. Drew everyone's attention. If you look at my Twitter feed
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554 at I underscore m underscore ICT that is where we started our observation. And
555 this is the old daily well as outlined on the daily chart. We have relative
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559 equal highs in here and price runs back up into a bearish order block, which is
560 this candle here. We're not going to teach order blocks here. It's in my lessons
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564 you can actually find a lot of that introductory and foundational information on
565 order blocks which is just basic approaches to it with my YouTube videos. I
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569 teach, obviously much more in depth in advanced use of waterblock theory in my
570 mentorship, the equal highs in here relatively equal highs, they run those,
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574 there's above that what's going to be the same thing we outlined on a daily
575 chart about above old highs is buyside liquidity. So they run those buy stops on
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579 anyone that's short. And the opportunity is that those buy stops flood the
580 market with buying interest immediately floods the market with willing buyers at
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584 a higher price. And smart money will pair their orders with that and sell short
585 right above those highs. And then every time the market has a retracement, okay
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589 presents an opportunity to create a new short position until we get down to that
590 old daily low. Now when we do this, okay, when we trade down to that old daily
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594 low to support resistance camp, those individuals that like to see these types
595 of things, they're going to be out here buying. And if you look at indicators,
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598 00:21:02,160 ~-~-> 00:21:10,590
599 and such, you'll see that there's momentum indicators diverging bullish Lee at
600 these levels. And that's exactly what they want. They want traders to think that
601
602 122
603 00:21:10,590 ~-~-> 00:21:19,590
604 this is a low and the market starts to go up a little bit, but then it goes and
605 consolidation, new trading day begins. They run below these relative equal lows,
606
607 123
608 00:21:19,590 ~-~-> 00:21:32,610
609 what's below here, sell side liquidity. So what we're seeing is buy stocks being
610 taken. So if the buy stocks are being rated what's actually happening, so one
611
612 124
613 00:21:32,610 ~-~-> 00:21:45,060
614 has to take those out of that by side. So everybody has to have a seller, this
615 seller is profitable if they wrote it down to that old daily, low, or under it.
616
617 125
618 00:21:45,540 ~-~-> 00:21:56,100
619 Because below that old low is what willing sellers, they have sell stuff below
620 that. So they want to sell at a low price. Remember, it was over here. So the
621
622 126
623 00:21:56,100 ~-~-> 00:22:04,080
624 orders that were below that old daily low in the form of sell side liquidity.
625 They're screaming like with a banner in their hands, I am willing to sell way
626
627 127
628 00:22:04,080 ~-~-> 00:22:14,640
629 down here if you want. If it gets down here, I'll sell to you. Well, those smart
630 money that sells to the buy stops that are trying to protect their short
631
632 128
633 00:22:14,640 ~-~-> 00:22:25,740
634 positions. They sold short here, they write it down to the old daily low. And
635 they offset their position by distributing their shorts to willing participants
636
637 129
638 00:22:25,740 ~-~-> 00:22:36,720
639 that want to sell to a lower price. And the smart money will buy it back
640 covering their shorts. To get out of a short, you have to buy it back. Well,
641
642 130
643 00:22:36,720 ~-~-> 00:22:44,940
644 who's gonna buy it from Smart Money pairs it up with the liquidity resting below
645 the old daily low. And this is a concept that I teach is called offset
646
647 131
648 00:22:44,970 ~-~-> 00:22:55,260
649 distribution. Offset distribution is exactly how interbank works. You're not
650 going to see that in books, you're going to hear it from me if you train under
651
652 132
653 00:22:55,260 ~-~-> 00:23:06,510
654 me. But the concept is then really been watered down from folks that have
655 trained under me for a little while, or had been exposed to my content. And
656
657 133
658 00:23:06,510 ~-~-> 00:23:14,340
659 they're trying to rename things and draw attention to themselves. Like they
660 understand how markets work or how market making is done. And they're completely
661
662 134
663 00:23:14,340 ~-~-> 00:23:23,520
664 clueless. They're absolutely clueless, YouTube has been invaded by you guys that
665 have no idea what they're talking about, they're only going to talk about what's
666
667 135
668 00:23:23,550 ~-~-> 00:23:30,120
669 already happened. In the left side, you don't see them actually trading it, you
670 don't actually see them outlining it before it happens. And they're out there
671
672 136
673 00:23:30,120 ~-~-> 00:23:39,810
674 trying to promote multi level marketing. I market live I market analysis I
675 market Academy I am trying to copy off ICT is basically what that is, these are
676
677 137
678 00:23:39,810 ~-~-> 00:23:49,560
679 all people pretending Okay, and you'll never see them trading an account. And
680 many of you watch me do this last year where I took a small account and ran it
681
682 138
683 00:23:49,560 ~-~-> 00:24:01,500
684 up over seven digits. And I did it in short order. It brought a lot of
685 controversy. But I was doing a lot of what I just explained here. And those
686
687 139
688 00:24:01,500 ~-~-> 00:24:10,500
689 individuals that run services or try to run signal services, they were blown out
690 of the water because they can't answer for something like that. So they
691
692 140
693 00:24:10,500 ~-~-> 00:24:25,890
694 instigated a mt empty for server okay rented empty for server scam, which I was
695 just as well as anyone else surprised out easy it was to pretend and fake
696
697 141
698 00:24:26,609 ~-~-> 00:24:35,489
699 what your results look like when you go on social media. You can see these guys
700 on Instagram, they show their mp4 profits, what's your balances are and how many
701
702 142
703 00:24:35,489 ~-~-> 00:24:44,249
704 positions they have open and whatever. You can put in all that stuff after the
705 fact. If you watched what I was doing, I was my orders were resting in the
706
707 143
708 00:24:44,249 ~-~-> 00:24:51,329
709 market before the market would go up and you can actually see see, see these
710 things on my YouTube channel still. I have limit orders in the marketplace. It
711
712 144
713 00:24:51,329 ~-~-> 00:25:00,749
714 goes up it hits the limit order and then it goes where I want it to go. And then
715 I reverse and go the other direction. So there's no empty for server New
716
717 145
718 00:25:00,779 ~-~-> 00:25:12,629
719 tomfoolery there. Okay, they have been completely exposed as frauds and trying
720 to discredit me. And on top of that, I have 1000s of people that watch me do
721
722 146
723 00:25:12,629 ~-~-> 00:25:22,949
724 this every single week and I'm co signing what I believe the markets going to do
725 before it happens on Wednesdays on the weekends. So before these markets trade
726
727 147
728 00:25:22,949 ~-~-> 00:25:35,309
729 to these levels, I've already said this is what's going to happen. And those
730 that are familiar with me they'll know it were 98% accurate analysis every
731
732 148
733 00:25:35,309 ~-~-> 00:25:45,449
734 single week. That means 98% of the time, what I expect to see unfold in price.
735 That's what happens. And I'm predominantly only focusing on euro dollar and
736
737 149
738 00:25:45,449 ~-~-> 00:25:57,689
739 cable, my analysis of what the dollar index, and we've been bullish on dollar,
740 which lends well to these ideas with the weakness in Australian dollar. If you
741
742 150
743 00:25:57,689 ~-~-> 00:26:08,219
744 study the times of the day that the markets creating these highs, it's in an
745 area where I have dubbed over the years as an ICT kills them. Now what is a kill
746
747 151
748 00:26:08,219 ~-~-> 00:26:19,109
749 zone, a kill zone is a specific segment in time, at specific times of the day,
750 where there is a high probability for a key turning point to form. Now, those
751
752 152
753 00:26:19,109 ~-~-> 00:26:28,829
754 key turning points intraday could actually be the very daily high or the very
755 dearly low. It's not always the daily high or the daily low, and sometimes it's
756
757 153
758 00:26:28,829 ~-~-> 00:26:40,859
759 just a intraday in a market turn, like it would be seen on a one minute or 15
760 minute timeframe. I want to take your attention back to this level here. And
761
762 154
763 00:26:40,859 ~-~-> 00:26:48,659
764 remember that if it was hitting that old daily, low traders that view support
765 resistance, we're going to see that as a potential buying opportunity,
766
767 155
768 00:26:49,049 ~-~-> 00:26:59,219
769 especially if the add to it indicators. Okay, so if they started putting their
770 momentum indicators, their stochastic, RSI, CCI, MACD, whatever they're using,
771
772 156
773 00:26:59,609 ~-~-> 00:27:13,559
774 all of that is going to be painted with a bullish divergence. That's what the
775 algorithm does, it spends time in a range, which causes the indicators to go to
776
777 157
778 00:27:13,559 ~-~-> 00:27:22,409
779 an overbought or oversold relative to where it has been recently. So from this
780 high to this low, okay, take it out like this, I'm going to teach you real quick
781
782 158
783 00:27:22,409 ~-~-> 00:27:31,169
784 how to throw away all your indicators because you don't need an indicator to
785 tell you if you're overbought or oversold. A market technician, a mechanic with
786
787 159
788 00:27:31,169 ~-~-> 00:27:40,589
789 price does not need an overbought oversold indicator. They don't need to look
790 for divergence either. Because you can see it in price. Without the necessity of
791
792 160
793 00:27:40,589 ~-~-> 00:27:49,559
794 having an overlaid indicator on your chart. There's nothing on my chart except
795 for that horizontal line. And I've outlined the logic of what makes this market
796
797 161
798 00:27:49,559 ~-~-> 00:27:58,679
799 move. Now. I've already framed all this stuff on Twitter, I drew everyone's
800 attention to this before it happened. We go back to this old daily low, which is
801
802 162
803 00:27:58,679 ~-~-> 00:28:07,079
804 that horizontal line, retail is going to expect a bounce. And they give it a
805 look a little bit of a rally there but then they hold it. Then as a new day
806
807 163
808 00:28:07,079 ~-~-> 00:28:20,819
809 starts. Okay, when we have a new day beginning in Wellington, there's going to
810 be a new day started in the foreign exchange market. And the Australian dollar
811
812 164
813 00:28:21,149 ~-~-> 00:28:31,439
814 and New Zealand dollar typically will have really respectful runs in this time
815 of day before Asia starts. And during Asia, usually I'll show you the New
816
817 165
818 00:28:31,439 ~-~-> 00:28:41,609
819 Zealand can be traded with a scalping idea. The market runs below these relative
820 equal lows right below here, hit that and then it creates another relative equal
821
822 166
823 00:28:41,609 ~-~-> 00:28:52,019
824 low. So we have rated effectively, the old daily low here on a shallow sense.
825 And then we went a little bit deeper here, then the market rallies back up. And
826
827 167
828 00:28:52,019 ~-~-> 00:29:02,279
829 what is it doing here it's taking out the buy side liquidity that's resting
830 above would be seen as resistance by retail traders. It's gone up, it's gone up,
831
832 168
833 00:29:02,309 ~-~-> 00:29:11,159
834 it's failed to go here. So this is what in their eyes, that's going to be a safe
835 area to sell short or if they sold short down here. They can put their buy stop
836
837 169
838 00:29:11,159 ~-~-> 00:29:15,509
839 that will protect that short position right above these real safe equal highs.
840
841 170
842 00:29:16,079 ~-~-> 00:29:26,129
843 Which now all of a sudden, everybody on YouTube, everybody on social media,
844 Instagram, and all these multi level marketing companies, okay are pretending
845
846 171
847 00:29:26,639 ~-~-> 00:29:35,009
848 they understand that too. It's not always in equal height equal load, it's
849 rated. It doesn't always present that sometimes. These are continuations where
850
851 172
852 00:29:35,009 ~-~-> 00:29:44,279
853 we can run it come back and then recapitalize and go long again, for a longer
854 term move. So don't think simply because it's equal high equal low that you
855
856 173
857 00:29:44,279 ~-~-> 00:29:51,179
858 figured it out either because of the whole lot more context that's necessary.
859 This is a run on the bicycle equity running buddies relative equal highs. And
860
861 174
862 00:29:51,179 ~-~-> 00:30:03,119
863 it's happening in Midnight in New York time. rallies hits it, I mean an hour and
864 then make sense aggressive run to the sell side liquidity resting below these
865
866 175
867 00:30:03,149 ~-~-> 00:30:17,549
868 equal lows here. So we make a deeper path into the liquidity that rests below
869 that old daily low. So this low here, dug in deeper than the initial run in
870
871 176
872 00:30:17,579 ~-~-> 00:30:33,869
873 Asia. And below what was seen in the New York session on Monday of this
874 particular week, the 27th of January. Once we dug in deeper, then it rallies
875
876 177
877 00:30:33,869 ~-~-> 00:30:43,469
878 back and start spending time at and around that Oh, daily. Well, why does it do
879 that? Because there's all kinds of liquidity, the resting below that old daily
880
881 178
882 00:30:43,469 ~-~-> 00:30:53,969
883 low. And that's why we're seeing all these ebbs and flows around that level,
884 because it's allowing the algorithm is allowing orders to come into the
885
886 179
887 00:30:53,969 ~-~-> 00:31:04,859
888 marketplace and build up around that old daily low. Because like I said, there's
889 traders that look at the old daily low as support they want to buy it. Other
890
891 180
892 00:31:04,859 ~-~-> 00:31:11,669
893 traders are looking at when it breaks in it comes back up, they want to sell
894 short at it because they think it's support broken term resistance, and they get
895
896 181
897 00:31:12,149 ~-~-> 00:31:21,209
898 sliced and dice to the market breaks down and they chase it. When they do they
899 wait for these overs to vary. When they do they go short, because they're
900
901 182
902 00:31:21,209 ~-~-> 00:31:30,119
903 chasing price. And then what happens, the market runs back up above that old
904 daily low that they looked at as support broken out term resistance. And that's
905
906 183
907 00:31:30,119 ~-~-> 00:31:39,389
908 what's going on here. They're sweeping the liquidity above that old low for
909 those types of traders. So when we understand what we're looking for, it gives
910
911 184
912 00:31:39,389 ~-~-> 00:31:47,579
913 you a context to act. When the standstill when to anticipate a specific
914 direction in mind, where's the draw on liquidity? That's the draw on price.
915
916 185
917 00:31:47,729 ~-~-> 00:31:59,369
918 Okay, I teach in my concepts and in my mentorship and even in a lot of my free
919 lessons. The draw on liquidity. If you go on my Twitter feed, there is a free
920
921 186
922 00:31:59,369 ~-~-> 00:32:07,019
923 price action model that I shared last year. And it's a PDF file that you can
924 download and look at it. Till next time. I wish good luck and good trading.