ICT YT - 2020-09-26 - ICT Institutional Price Action - Micro-Market Structure and Time and Price Concepts - Part 2.srt

Last modified by Drunk Monkey on 2021-06-12 06:31
1 00:00:15,990 --> 00:00:24,090 ICT: Hi, folks, welcome back, we're gonna continue our lecture on micro market structure and time and price concepts. I'm going to build a little bit on your
2 00:00:24,090 --> 00:00:37,380 understanding of my order block theory. So if we are looking at indices or index futures, specifically, as we referred to last time we were together, we're
3 00:00:37,380 --> 00:00:47,640 looking at the E mini s&p December contract for 2020. And if you recall, if you have not watched the previous recording, then please stop this video and watch
4 00:00:47,640 --> 00:00:59,910 the other one. It's not a very long video. So helps build a little bit of a foundation, also referring back to this candle. So we look at price action, like
5 00:00:59,910 --> 00:01:10,590 this is the daily chart, I want you to confer with the direction where's it been going? Okay, so if we're gonna be using micro market structure that's like the
6 00:01:10,590 --> 00:01:21,090 very, very low timeframe, intraday charts. There are some out there that say that there's just noise on these lower timeframe charts. And if you really take
7 00:01:21,090 --> 00:01:33,480 a step back and think about it, that's actually impossible. It's impossible. Okay for that to be true, because it's the same price. So the fact that we're
8 00:01:33,480 --> 00:01:44,970 measuring the fluctuations on the basis of a specific time interval, that's where the confusion comes in. Because it becomes a question of, what timeframe
9 00:01:44,970 --> 00:01:57,360 do I use? Which is, the better timeframe? Is it a one minute chart, is it a two minute chart, a seven minute chart five minute, you know, you can use any lower
10 00:01:57,360 --> 00:02:13,020 timeframe chart you want. But if you really want to get ultra tight with your entries and stop loss orders, the five or one minute chart is the best in terms
11 00:02:13,020 --> 00:02:24,570 of doing that, but you have to understand what you're looking for. Otherwise, you will get burned. Alright, so I've covered in many videos over the last 10
12 00:02:24,570 --> 00:02:36,900 years dealing specifically with forex and teaching some of my concepts with that asset class. And many of you are familiar with my time and price theory. I've
13 00:02:36,900 --> 00:02:46,770 done videos on that and tutorials, and it's made its way in many of my lectures. And you all understand and have been introduced to my ICT order block theory. So
14 00:02:46,800 --> 00:02:55,650 while I mentioned this specific candle last time, as a bearish order block, and how we can use the low of that candle, and again, I'm going to count you look at
15 00:02:55,650 --> 00:03:11,220 this price up here. So the price comes in at 30 to 56 and a half. Okay, so 30 to 56 and a half, we can use that level when we're bearish. So the market has been
16 00:03:11,220 --> 00:03:23,280 going lower. And to avoid all of the necessities of trying to pick a bottom in a bear market, you just simply focus on the up close candles. If we get an up
17 00:03:23,280 --> 00:03:33,960 close candle while order flow is down or trend or momentum however you want to refer to it. But this is how the interbank traders will focus in on key price
18 00:03:33,960 --> 00:03:45,120 levels on the lower timeframe for entry. Now, you're also going to hear hedge fund managers, bank traders don't use one minute charts. Well, that's true in a
19 00:03:45,120 --> 00:03:56,160 sense, but they're waiting for something specific on the chart to appear to initiate their engagement. So I'm going to teach a little bit of that, and I
20 00:03:56,160 --> 00:04:04,230 introduced it in the last video. But I want to build on a little bit here. And still try to keep the video short. So we have this level here. And we're going
21 00:04:04,230 --> 00:04:12,540 to look at Friday's price action. Now. Notice Friday's price action is a nice bullish candle. Now it didn't have a whole lot of range, but it was respectable.
22 00:04:12,780 --> 00:04:21,210 And it did trade deeper into this upclose candle. It does not matter because if we're trading micro market structure, what we're essentially doing is we're
23 00:04:21,210 --> 00:04:33,900 trading the intraday volatility, both directions up and down. But how can you determine which side of the marketplace has the more likely probability using
24 00:04:33,900 --> 00:04:44,310 order block theory? Well, let's go back down into a lower timeframe. Okay, so here we have the E mini s&p December contract for 2020. And we are dialed in on
25 00:04:44,310 --> 00:04:53,760 a five minute chart. Now I want you to take a look at this price action. Pause the video, study it for a little while and come up with what you think you see
26 00:04:53,760 --> 00:05:02,730 in this price action. And then when you're ready, unpause the video and I'll continue to lecture with you Alright,
27 00:05:03,420 --> 00:05:14,790 so as you can see price has been meandering around in here consolidating. And it finally made its way lower. And then I had another drop here, a little bit of
28 00:05:14,790 --> 00:05:30,540 retracement in here. And price had a nice sell off trading down below the 32 08 level. If we break this down and add that same daily key level, that's that 30
29 00:05:30,540 --> 00:05:47,130 to 56 and a half. And then we incorporate the aspects of time. Because price by itself doesn't mean anything. It's not price and time. It's time and price.
30 00:05:47,880 --> 00:05:57,960 That's how the algorithm operates. It may sound like arguing semantics. But it's absolutely crucial that you understand that time is the first factor in how
31 00:05:57,990 --> 00:06:09,330 price is delivered. Once you have a specific window of time, when the algorithm will operate and run on its macro, and again, a macro is a shortlist of
32 00:06:09,840 --> 00:06:24,480 processes that go in action for either running to a specific pool of liquidity, or to a period of time where the market was inefficiently delivered and
33 00:06:24,480 --> 00:06:36,390 therefore, rebalancing. They're the only two things that occur in price. It runs to liquidity, either by side liquidity above old highs, or it runs sell side
34 00:06:36,390 --> 00:06:51,210 liquidity below old lows, or it runs to an area of inefficiency in the sense that it wants to rebounds. So with those two ideas in mind, I want you to
35 00:06:51,210 --> 00:07:01,890 remember that we were looking at the email SP on the daily chart, I've already suggested that we should focus on delivery on the downside. So attacking sell
36 00:07:01,890 --> 00:07:12,960 side delivery. So you have to look for where does sell side liquidity reside? Well, if you're looking at London open kill zone on Friday. And that begins at
37 00:07:12,960 --> 00:07:21,540 two o'clock in the morning and ends at five o'clock in the morning. Okay, so once we have that period, on our chart, we're hunting in this area for a
38 00:07:21,540 --> 00:07:30,960 specific phone and on. Now that phenomenon is what I talked about in the last video, where we have an order block, which you can see the price trades up to it
39 00:07:30,960 --> 00:07:46,110 here. Here that red lines what I'm referring to here, here, here here, what's going on there? Is that resistance? Or is that an algorithm holding price. At
40 00:07:46,110 --> 00:07:56,640 this level? They're accumulating short positions. So now if we are looking at this area up here, and they're shorting and again, they collectively are the
41 00:07:56,640 --> 00:08:12,990 real smart money, not Goldman Sachs, not city builder or lower rung entity in the grand scheme of things. Okay. So if we look at that area right here, the
42 00:08:12,990 --> 00:08:21,600 order block in itself, if we're using higher timeframe, you have to wait for price to show its hand. What does that mean? Does it mean get right in at the
43 00:08:21,600 --> 00:08:34,500 order block? Not if it's a higher timeframe order block? No. So you wait for time of day now we're in a kill zone. London wait for price to show wants to go
44 00:08:34,590 --> 00:08:44,580 away. In this case lower because order flow on a daily chart is bearish. So we're waiting for displacement lower during two o'clock to five o'clock in the
45 00:08:44,580 --> 00:08:59,910 morning. Do you see it? Right here. This displacement right here. Now right away, some of you that are familiar with my content would say okay, you have to
46 00:08:59,910 --> 00:09:08,550 look at the upclose candle or candles that are consecutive, like this one here like 123 that would be your order block your bearish order block and if it
47 00:09:08,550 --> 00:09:18,150 trades back up to it, once it trades below it, well it does it here and then do we get a little displacement. Yes, it starts to run. This one has already been
48 00:09:18,150 --> 00:09:31,740 used. So as we start to retrace higher rate in here, that candle is what you would be using for your order block. So you have this price run here. And then
49 00:09:31,770 --> 00:09:42,900 this order block, what's the low on that candle? You're going to look at this price right here. Okay, focus there. The low on that candle comes in at 3243
50 00:09:42,930 --> 00:09:48,240 even. Okay 32 43.00
51 00:09:50,700 --> 00:10:07,170 the high on this candle comes in exactly at 32 43.00. Again, folks perfect Perfect. It's not close, it almost made it, it's perfect. It can only happen
52 00:10:07,170 --> 00:10:17,640 that way. If these markets are running on an algorithm. what time of day would this pattern form if it's running on a program? Well, a very specific element of
53 00:10:17,640 --> 00:10:30,360 time. That's why I teach the moment open kills on the New York open kills on the London closed kill zone in the New York, close kill zone, and Asia. That's how
54 00:10:30,360 --> 00:10:41,460 many opportunities exist every single day. You don't need to be a London open trader, if you can't be up overnight, and you live in the States, then trade New
55 00:10:41,460 --> 00:10:53,070 York, or trade London close, or New York close, or Asia. But you don't need to be in London. But now if you want to be a London trader, and you can use micro
56 00:10:53,100 --> 00:11:01,770 market structure concepts, as I'm teaching in this series, here, you're gonna be looking for a displacement lower moving away from a higher timeframe order
57 00:11:01,770 --> 00:11:13,140 block, we've already seen the inability for the price to get above that level, that red light wants to order block on the daily chart, price moves away. We
58 00:11:13,140 --> 00:11:25,590 have an order block, we trade up into it. And we have a very clear, obvious, old low, which is sell side liquidity. So now what we're saying in essence, is that
59 00:11:25,590 --> 00:11:29,190 we're looking for this area here
60 00:11:35,670 --> 00:11:49,500 to be matched up with this area here. So smart money operates under what I teach is market efficiency paradigm. That means when you look at the marketplace, when
61 00:11:49,500 --> 00:11:58,260 you as a retail trader look at price, you're looking at patterns, you're looking at indicators, you're looking for entry, and not so much on a stop loss because
62 00:11:58,260 --> 00:12:07,470 most retail traders don't want to use a stop loss. They think if it stops me out, I'm wrong. Well, you need to have a shield. You can't just go in here with
63 00:12:07,470 --> 00:12:16,380 swinging a sword, you need to have a defense mechanism. And that is a stop loss. And that is what real professionals use. They don't trade what a mental stop and
64 00:12:16,470 --> 00:12:28,110 or disregard it entirely. You have to measure and assume risk if you're trading in these markets. So it's good to train yourself to believe that what you're
65 00:12:28,110 --> 00:12:37,500 doing is the right thing to do, despite what many other people on the internet might tell you. So we have smart money selling short here. We're not looking at
66 00:12:37,500 --> 00:12:43,440 patterns. We're not looking at resistance support. We're not looking at supply and demand. We're not looking at Elliott Wave, we're not looking at any of that
67 00:12:43,440 --> 00:12:57,510 stuff. Okay, we're looking at the paradigm between where smart money would enter and where would Smart Money look to exit. You may not subscribe to the quote
68 00:12:57,510 --> 00:13:08,340 unquote de or smart money. But just for the sake of discussion, let's assume that they do exist. I believe they do. But let's assume that you don't believe
69 00:13:08,340 --> 00:13:20,130 it. But this you just missed all that for a second. If they existed, and they're selling short up here, okay, they're selling as people are chasing this higher
70 00:13:20,160 --> 00:13:28,710 every time it makes a little bit of headway above that red line. buyers are using as a breakout. They're buying, buying, buying who is giving them the other
71 00:13:28,710 --> 00:13:39,810 side of their buy their long trade, smart money is selling that to them. So if the Smart Money is short, where's the ideal scenario for smart money to get out?
72 00:13:44,250 --> 00:14:00,630 a pattern, a harmonic pattern, an Elliott Wave, a supply and demand zone or the obvious Counterparty to what they use to enter deposition. If they are selling
73 00:14:00,630 --> 00:14:18,390 to buyers up here. They are going to look to pair their order for exiting that short with existing sellers. That's what's residing below here. Sell stops. So
74 00:14:18,420 --> 00:14:27,330 what they're going to do is they're going to sell short here and look to buy it back from willing sellers at a lower price that are just waiting to be tagged.
75 00:14:28,020 --> 00:14:40,590 So the market efficiency paradigm is this. Smart Money sells. Them buys it back from retail traders that have sell stops resting below lows. Everything is
76 00:14:40,590 --> 00:14:50,010 upside down folks. Everything that you think about the marketplace, everything you think about technical analysis, it's inverted. And you have to reverse that
77 00:14:50,760 --> 00:15:00,420 school of thought and then everything will start falling into place but as long as you struggle to defend your retail logic against people like me You're going
78 00:15:00,420 --> 00:15:10,110 to break and I'm going to be a frustration to you versus a help. Because that's what I'm doing is I'm not here to say, look how foolish all of you are. Because
79 00:15:10,110 --> 00:15:21,060 I used to subscribe to this stuff, too. I want you to test it. Look at it like this. And I promise you, if you spend one month looking at charts like that, all
80 00:15:21,060 --> 00:15:31,830 the retail stuff starts to feel foolish to consider. And then when you start looking at how the real professionals, real professionals, look at price action,
81 00:15:32,370 --> 00:15:41,520 everything makes more sense. It's not just simply, oh, it's a stop hunt. Oh, it's a support broken turn resistance. No, there's a narrative that's going on.
82 00:15:42,210 --> 00:15:54,750 And it's operating on a very specific element. I told you this level, in the previous video, it was in your awareness. So we're not predicting a down close
83 00:15:54,750 --> 00:16:04,440 day, we're focusing on micro market structure. I get 1000s of emails asking all the time, how was I doing those trades buying and selling and buying and selling
84 00:16:04,710 --> 00:16:18,780 in the same day? Well, a lot of it has to do with things I'm not going to teach. But I will share some things and give you part of a view where some of the
85 00:16:18,780 --> 00:16:28,800 setups were framed on things like I'm showing you here, but not all of them there. So and I think it's reasonable everyone out there should really accept
86 00:16:28,800 --> 00:16:37,200 the fact that if someone knows something, and it's extremely technical, and it's highly sought after,
87 00:16:39,000 --> 00:16:46,290 you're not going to teach everything, okay, you're gonna keep something for yourself and for your family. And I don't believe that's selfish, because I have
88 00:16:46,290 --> 00:17:00,930 spent 10 years teaching forex, for free. And while I do have a mentorship, I'm still here doing this for free. So again, take the value that I'm giving you,
89 00:17:00,960 --> 00:17:08,190 and you don't have to like me, but just look at it. I'm challenging you to look at your charts a little bit differently. And I promise you will improve, I
90 00:17:08,190 --> 00:17:20,910 promise you, you will improve. Like it's it's a night and day difference once you see it. But what are we looking for specifically, we want to see the price
91 00:17:21,000 --> 00:17:33,420 move away, but not just drift away, we want to see it drive hard away, because what the indicators are telling you is something altogether different. Whereas
92 00:17:33,420 --> 00:17:41,400 if we're reading price prices indicating, okay, yeah, we're reaching for something. And what we're reaching for is the liquidity resting below this low.
93 00:17:42,840 --> 00:17:54,510 Remember, the daily chart order flow is bearish. So I want to be looking at key levels and selling short with intraday volatility. At a time of day, when I know
94 00:17:54,510 --> 00:18:04,140 the algorithm will start really operating and running on its own macro, that means it's going to be reaching for a pre determined level that we can clearly
95 00:18:04,140 --> 00:18:13,740 see if we understand the market efficiency paradigm. That means we look at price how smart money looks at price, we don't look at patterns, we look on the basis
96 00:18:13,740 --> 00:18:24,540 of liquidity, imbalance, rebounds, that's it. That's it, there's the buy side liquidity run, sell side liquidity run or inefficient, run rebalanced, or run to
97 00:18:24,540 --> 00:18:33,510 make inefficient. That's that's the only thing you need to understand about price. It's not an over simplification, obviously. And it's not an over
98 00:18:33,510 --> 00:18:45,090 complication. There are four specific things, there are four pillars of understanding what price is doing. The fifth element is time. That's what we're
99 00:18:45,090 --> 00:18:54,390 looking at here. So we see price moving away from that order block. You don't need to be in at the order block. Don't think that you need to do that on a
100 00:18:54,390 --> 00:19:03,780 higher time frame level, you just need to see Do we have proof that price is wanting to go lower away from it and we have that then we have consolidation and
101 00:19:03,780 --> 00:19:12,240 then we drive lower first level would have been here so you could be short already there and your stop loss would be there. But say you missed it. Okay,
102 00:19:12,240 --> 00:19:34,590 now from this price run here. Where's the order block there? So if we look at that, and put a line rate on that low right there. The high 30 to 43. The low 30
103 00:19:34,590 --> 00:19:48,030 to 43 perfect delivery of price sell short there. And where is it going to go? Well, we're going to aim for a level below this swing low because it's gonna be
104 00:19:48,030 --> 00:20:01,560 what residing below their cell stops. Why should it go there? Think Why should price from here drop below that low? It's not support Because that logic says,
105 00:20:01,860 --> 00:20:11,760 if it's going to go down, it's going to go down to that level here in balance. That's what I was taught in all the books I had. Think that's what you're
106 00:20:11,760 --> 00:20:21,360 taught. If it goes down here, it's a buy, they're not teaching you to target that low. And the liquidity below that that's what I teach. That's what Smart
107 00:20:21,360 --> 00:20:35,130 Money traders do. In indices, and in stocks, and futures, and commodities, and bonds, you see where I'm going with this, right? You need to stop drinking from
108 00:20:35,130 --> 00:20:48,540 the pool. Because the waters tainted and stopped reading your books, because those things are poisoning your perception. If we take the kill zone, lines off,
109 00:20:48,900 --> 00:20:57,900 I don't have these things on my chart. When I look at price, there's nothing on the chart, zero. Now I might make an annotation, you know, a text thing for
110 00:20:57,900 --> 00:21:08,370 myself to remember a specific level. But I'm not drawing all this stuff out. I'm drawing all these things on my chart. So it can be taught and learned by you. So
111 00:21:08,370 --> 00:21:15,960 you can visually see what I'm internalizing in the price. So when I'm looking at price, I don't have all this stuff on there. Because number one, it's going to
112 00:21:15,960 --> 00:21:25,470 be a distraction. I know in my head, what I'm looking for. But you as a developing student learning my way of thought process, price action,
113 00:21:25,620 --> 00:21:33,510 institutional order flow, institutional trading, smart money trading all that. For you to understand it, you have to see these
114 00:21:33,990 --> 00:21:47,280 things applied to the chart, because it will solidify the concept over and over again, repetitive examples will just basically burn the image in your brain. But
115 00:21:47,280 --> 00:21:59,370 we have an optimal trade entry here. Okay, so we have this run here. So we have 123 candles up, and we have this swing low here. Alright, so we have the fib on
116 00:21:59,790 --> 00:22:13,470 the high and the low. And you can see the 62% retracement level, or maybe you can't. It says 30 to 43 00. Perfect. Okay. Again, it's not the fact that the
117 00:22:13,470 --> 00:22:24,330 Fibonacci sweetspot optimal trade entry, all that stuff. That's just from me to teach you a good area to aim for. It doesn't necessarily need to trade at that
118 00:22:24,330 --> 00:22:35,760 level for me to enter. But we can see that we trade to optimal trade entry. And if it breaks this low, how far can it go? Well, our target is something below
119 00:22:35,760 --> 00:22:49,230 this low here. So look at the fit. What's below that we have 32 1550 Then we have 32 07, even 32 07 even that's what this line is here and trades down to
120 00:22:49,230 --> 00:23:02,040 that line here on this candle. The low comes in at 32 06. point five, zero. That's one half of a standard handle in the E mini s&p, or basically we're
121 00:23:02,040 --> 00:23:16,980 talking about $25 so it was off by $25 in terms of projecting a low target that would be below here at a guy on YouTube. He made a comment in recent video his
122 00:23:17,400 --> 00:23:26,340 he said you know you're trying to tell me that ICT knows how far it's going to go below an old low. Yeah, just watch my PD. I'm teaching you right here.
123 00:23:27,000 --> 00:23:43,890 Anyway, it price has a nice run from 30 to 43 to 32 07. That's 36 handles in the Standard and Poor's futures contract 36 handles folks, when I was trading back
124 00:23:43,890 --> 00:23:56,190 in the 90s. And I transitioned from trading grains and live cattle and copper and all the regular commodity markets. I transitioned into bonds, and then by
125 00:23:56,190 --> 00:24:08,190 trading bonds, I got enticed into trading s&p, we had hoped that we would get three four handles for our trade. That was the type of volatility we had back
126 00:24:08,190 --> 00:24:21,300 then. Three. I just showed you 36 using this method, okay. So we're applying an element of precision that nothing else out there delivers. And everyone that can
127 00:24:21,330 --> 00:24:29,910 watch my videos and this is why folks don't like any thumbs down the video despite I'm giving you gold, okay, I'm literally laying gold and in lottery
128 00:24:29,970 --> 00:24:42,420 tickets in your hands for next week and months and years to come. But they don't like hearing me say nothing's like this and nothing's better. But folks, how can
129 00:24:42,420 --> 00:24:52,530 you improve on perfection? I mean, seriously, forget who I am. If you and I were just sitting here talking about any other topic and we clearly see an element of
130 00:24:52,530 --> 00:25:08,820 perfection. Perfection. How is that a staged arguing anyone Looking at this can see it's perfect. It's not flawed. It's not muddy. It's not it works. Sometimes
131 00:25:10,920 --> 00:25:28,830 it's working every day, every day. So I'm here to keep you inspired, and working towards improving. But if you don't study, all of these things don't really
132 00:25:28,830 --> 00:25:37,770 matter. It's just you're watching videos that are going to be watched by other people too. And they're going to start going into the charts and looking for
133 00:25:37,770 --> 00:25:48,900 these things that repeat over and over and over again. Now, once it gets below this low, here, and it trades down and takes that liquidity out, the shorts that
134 00:25:48,900 --> 00:25:59,430 the Smart Money have traded with up here and looking to buy back below here to the sell stops that are waiting to be filled in triggered. Once that's done, my
135 00:26:00,450 --> 00:26:14,730 intraday sentiment shifts, I'm now thinking, Okay, we ran sell side liquidity, where is the nearest buy side liquidity here. And I think in run above here,
136 00:26:14,820 --> 00:26:27,240 what next one at Target would target this. And what did they leave up here? Relative equal highs. So what's residing about here by side liquidity.
137 00:26:29,430 --> 00:26:40,230 So in addition to closing shorts from up here, below this low, smart money now is accumulating long positions. So they're going to buy sell stops with the
138 00:26:40,230 --> 00:26:49,290 intent that they're going to sell them to. Buyers up here with the buy sell liquidity. So that's the market efficiency paradigm, you need to know by looking
139 00:26:49,290 --> 00:26:59,190 at the chart day of the week, time of day, sentiment ideas, not sentiment in the sense that we're measuring it in an indicator, but based on what has recently
140 00:26:59,370 --> 00:27:07,740 transpired in price, has it taken out stops that's below the marketplace, okay, then it's either going to go up to rebound, something inefficient, or it's going
141 00:27:07,740 --> 00:27:17,160 to go up to take out by stops. That's the only two things that can happen, folks. That's it. Nothing else. No patterns, nothing harmonic. No ways from
142 00:27:17,160 --> 00:27:30,660 Elliott. No Dow Theory, nothing like that needs to be referred to at all. Its liquidity, rebound, rebalance imbalance. That's it, buy side, sell side,
143 00:27:30,870 --> 00:27:43,140 inefficient delivery, rebounds to efficient delivery, and then add an element of time, then you have the understanding of what price is doing. Now, there's
144 00:27:43,170 --> 00:27:49,740 narratives that you need to understand and how that fits in the grand scheme of things. But if we're talking about intraday volatility on a micro scale like
145 00:27:49,740 --> 00:27:58,620 this, then it's not that important, as long as you have one key level that we can operate on. And that level is this bearish order block. That's from the
146 00:27:58,620 --> 00:28:09,450 daily chart. But if you want to focus only in the direction of the highest probability trades and filter out, possibly being wrong, going long, intraday,
147 00:28:09,810 --> 00:28:17,010 then this is how you do it. But once you get your objective below the sell side liquidity you're done. That's it, you don't turn it into a long term trade,
148 00:28:17,010 --> 00:28:27,150 you're not a swing trader, you're not a position trader, you're getting out, you're collecting your chips, cashing in, and you're coming back the next day.
149 00:28:27,870 --> 00:28:35,430 That's how day traders live and thrive. They don't go in here and keep throwing dice, throwing the dice throwing the dice. But let's take a look at what
150 00:28:35,430 --> 00:28:48,090 happened later on in the day. the sell side equities taken comes back down hits that same old low, rise up and clears all the buy side liquidity above these
151 00:28:48,090 --> 00:29:06,390 highs here would run into the clothes on Friday. So when you look at things like this, it should be very fascinating. At least it was for me when I started
152 00:29:06,390 --> 00:29:19,110 seeing it and studying it. When I saw these things in 1995. It changed everything from me. It made me feel like I should be expecting a knock at my
153 00:29:19,110 --> 00:29:31,080 door anytime. Like I had some forbidden knowledge this would have felt like okay, and it grew from here. And I got more insights and more details and more
154 00:29:31,080 --> 00:29:45,330 precision elements. And everything started coming together with this beautiful tapestry of amazing, highly detailed processes that the markets actually repeat
155 00:29:45,540 --> 00:29:54,750 and do every single day and every single week. Now here's the wonderful thing. When you start knowing these things, you'll find that there are times of the
156 00:29:54,750 --> 00:30:07,020 year seasonal tendencies that specific markets will tend to do Bigger moves. And you can use these elements like this, to position yourself in trades that may be
157 00:30:07,020 --> 00:30:19,410 longer term. But if you're only going to be a intraday trader, you need to refine this art in this timeframe only and avoid trying to say okay, well, I'm
158 00:30:19,470 --> 00:30:30,600 smarter than I really am before you are. And overstaying your welcome into position, you don't want to do that. Because if you use the things I'm showing
159 00:30:30,600 --> 00:30:39,150 you here, you're going to find setups a lot, you're going to find lots and lots of setups. And you're not limited to just that daily chart for an order block to
160 00:30:39,150 --> 00:30:49,800 base your trade on, you can use a four hour chart. So you have a daily and a four hour if you use that idea. And just wait for these levels. To give you an
161 00:30:49,800 --> 00:31:01,320 indication, what I've taught you here is to trade off of key levels with a bias relative to its timeframes. nonwords at the four hour has been dropping, okay,
162 00:31:01,560 --> 00:31:09,870 that's even greater if the daily has been dropping. So you're really in sync with higher timeframe order flow, you're not trying to predict the bottom. And
163 00:31:09,870 --> 00:31:15,570 if the markets been going up, you're not trying to predict the top, because intraday volatility is going to
164 00:31:17,010 --> 00:31:27,150 serve you well, if you're just looking on the basis of running to an old, low or an old high, because you're reaching for liquidity, you're still gonna have
165 00:31:27,150 --> 00:31:34,440 losing trades. So if you make the mistake of trading with live funds with this idea, expect to lose money, you're gonna lose money, everyone loses money
166 00:31:34,470 --> 00:31:42,120 period, you're going to have losing trades, your stops are going to hit sometimes that trade won't pan out, you'll be wrong, you'll read it wrong. Or
167 00:31:42,180 --> 00:31:52,260 despite it looking as if it's perfect, it will fail, it may not go anywhere, it may just go into consolidation. And then you'll have to have a time stop. How
168 00:31:52,260 --> 00:32:01,920 long are you going to hold on to a trade that isn't panning out? Well, if we leave to kill them in London, and we start going into a time of day after 5am,
169 00:32:01,920 --> 00:32:11,370 and it's not moving, it's best many times it's just kill the trade and then wait for New York setup. Don't hold on to something that you're worrying about. And
170 00:32:11,370 --> 00:32:19,650 many of you probably trade during work hours, and you're really not being efficient for your employer, you're not being a good steward there. And you're
171 00:32:20,400 --> 00:32:28,620 making yourself miserable. So if you only trade during the kill zones, New York being seven o'clock in the morning to nine o'clock in the morning, there's your
172 00:32:28,620 --> 00:32:37,170 sweet spot, or you can use the 830 to 11 o'clock, optimal trade entry pattern recognition series, New York session window, knew that that takes in
173 00:32:37,170 --> 00:32:51,270 consideration, the 830 News embargo, lifting and running close. So you have two major factors they're providing, you know, a beginning and ending where majority
174 00:32:51,270 --> 00:33:00,510 of the moves are going to occur. Because you're letting price wait for the news events, whatever volatility is injected after that until the morning close. And
175 00:33:00,510 --> 00:33:12,870 then volume starts to Peter off on the daily for, for that particular asset around 11 o'clock to 12 o'clock. And to make it easy, just it's two o'clock to
176 00:33:12,870 --> 00:33:30,210 five o'clock, one in open, seven to nine, New York 830 to 11, New York session, London, closed 10 to noon, in ages 7pm to 9pm. And these are all Eastern
177 00:33:30,210 --> 00:33:42,450 Standard times. And that's gonna be pretty much it. When you're trading late New York, it's the session I showed you using the equities afternoon trend. It's one
178 00:33:42,450 --> 00:33:50,400 o'clock in the afternoon to four o'clock in the afternoon, Eastern Standard Time. So that way you have all my kill zones, you have again, the New York
179 00:33:50,400 --> 00:33:58,500 session, kill zone, the I don't want to call it the kill zone. That's the New York session for the optimal trade entry pattern recognition series. You know,
180 00:33:58,500 --> 00:34:06,360 when I talk about when to look for it, that's a nice window of opportunity to look forward there. But in my own personal trading, there's lots of trades that
181 00:34:06,360 --> 00:34:14,340 I'll take between seven o'clock and nine o'clock in the morning. That will be ahead of the news that comes out. And I don't always trade ahead of the news,
182 00:34:14,340 --> 00:34:21,120 depending on what type of news event comes out. It could be a high impact news event that says I'll wait for that. But if it's a medium impact news event, or
183 00:34:21,120 --> 00:34:30,930 no news is expected for that currency that I'm trading or in this case in the sea, then I'm not I'm not worried about this take the trade before 830 if not
184 00:34:30,930 --> 00:34:40,260 anticipate 830 fueling the fire that I have already set between seven o'clock and more than 830. So hopefully you got something out of this one. We'll
185 00:34:40,260 --> 00:34:47,970 continue this series and refine a little bit more and bring some more insights about order blocks because apparently YouTube needs it because there's a lot of
186 00:34:47,970 --> 00:34:55,230 misinformation going on. But you don't need to enter exactly at the order block. If you have a hard time frame or block all you're doing is waiting to see if
187 00:34:55,230 --> 00:35:04,320 it's willing to move in any specific time of day and then find your liquidity pool and set targets. And that's pretty much it until next time, wish good luck
188 00:35:04,350 --> 00:35:05,100 and good trading.