ICT YT - 2020-11-15 - ICT Price Action Lecture - Liquidity Purge and Revert.srt
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ICT: Welcome back, folks. It's been a while since I've
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posted another video to the YouTube channel. So I appreciate
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your patience. And as always your continued interest in my
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content. Alright, so we're going to talk about liquidity.
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I'm going to try to make this as brief as I possibly can, I
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tend to go overboard sometimes with insights and commentary,
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but I'm gonna try to do it as short and concise as I
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possibly can, which invariably will always inspire questions
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concerns, it will create gaps in your understanding. And
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that's normal. Okay, just know that it's meant for you to
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investigate on your own study, because I'm going to frame it
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in that capacity. So that way, you know, while it's not just
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perfectly formulated for this example, students of mine for
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a long period of time will hear certain things that I've
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talked about in passing in other commentaries and other
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YouTube series videos that you can find on this channel. I'm
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not a pattern trader, in the sense that I'm looking for, as
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it's commonly referred to as a trading pattern, like a
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harmonic pattern, okay, like a bat, or gartley, or a
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Fibonacci sequence, we're not looking for those things. So
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while I may reach for Fibonacci, to show a level of
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projection, and maybe show and highlight an area that is
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visually representing a valuation that would be undervalued
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or overvalued, or in the sense that it's overbought,
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oversold, without using an oscillator, okay, we're looking
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at specific ranges. So I'm going to touch a little bit on my
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L seven ranges, specifically, In this lesson, it's going to
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be a seven range example. And, again, it's not trying to
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teach you everything because there's no way I could do this.
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But it's also one more illustration of my I haven't ran out
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of yeast, okay, this Baker has a lot of yeast. And I can
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continue to teach for decades in the future and still not
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running the content. Because I understand the algorithm.
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Now, what I'm going to show you today would be normally
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reserved for students that are in my mentorship. But I want
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you to appreciate the level of systematic delivery of price,
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why it does what it does, and try to just simply suspend
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your belief system on any other model or school of thought,
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like if you're a supply and demand follower, or if you're an
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Elliott, wave trader, or harmonic trader, if you trade
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market, profile, it all those things just for a moment, try
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to put that to the side. And try not to lean on any of your
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logic, just for a moment, okay, during the time of this
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recording, just suspend all belief in that. I'm not saying
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believe this wholeheartedly, but I want you to just listen
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to it, and then go into your charts and you'll find it.
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Okay. So, Alright, so we're looking at the dollar CAD and
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this is a pair. Admittedly, I don't trade a lot. But if I
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don't get a set up in euro dollar or pound dollar, I will
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sometimes resort to trading this pair or the Aussie dollar.
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Okay, so, so I just want to toss that little disclaimer out
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there. I'm not actively trading dollar Cad a lot. But I want
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you to think about some general themes here. Again, I
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mentioned the L seven range theory. And it's basically
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trading inside the range. I'm going to frame a range for you
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so that we can see a little bit of the context that's
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required. But most of the things I'm going to show you here
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are pretty simple and straightforward. And it's not hard.
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It's not about moving parts. But there are very specific
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rule based ideas that need to be considered when you look
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and study at old data. And you'll see that this occurs when
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we're looking at liquidity, okay, the easiest way to
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determine that is anything that would reside above a short
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term high or intermediate term high. Now, you might look at
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this area here and say which one's the high? Well, this
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candle is slightly higher than all of them.
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But whenever I see multiple candles, or multiple levels that
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look very close to one another in height or in depth in
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terms of the, the lows if we're looking at if we're
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considering the opposite, in terms of looking for Southside
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liquidity by side liquidity rest above old highs. Now it can
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come in the form of Have these areas like this where it's
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relatively equal highs, okay, that's one of the concepts
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that I use to frame the idea and understanding of liquidity.
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Now liquidity can be formed on the basis of a single point
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of reference like this high, or this high, or this high. Or
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it could be a collection of relatively equal highs or
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relatively equal lows. Like this center, this would be
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considered relative equal lows. In my school of thought,
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this is relative equal highs. And my school of thought this
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is a single by sight liquidity pool, old high, this is a
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single by side liquidity pool, short term high, these
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things, okay are not required. For a label sense. It's just,
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I'm showing you the contrast between the two. But generally,
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anything above an old high would be buy side liquidity, that
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means there's buy orders up there. Now, as a new trader,
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that sounds a little alien, it doesn't make sense, who would
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be wanting to buy up there, because your books are telling
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you buy low, sell high. There's always traders that are
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going short, or traders that want to buy on a breakout that
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goes above that. So that's the context of why that's buy
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side liquidity. And I teach it from a institutional
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perspective, I'm not looking at it in terms of saying, you
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know, this is a resistance level, I'm teaching that this is
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an area where there are willing buyers up there. And that
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perception of price action. Once you start adopting that and
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looking at price with that, view, your opinions, your bias,
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your analysis will slowly start to migrate away from away
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from the retail logic that all of us are indoctrinated with,
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when we first come into trading, that's a normal thing. But
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statistically proven, if you look at all of the retail logic
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that's available to us. Why is it that 90% of the traders
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lose money? It's because the logic is flawed. Okay. So if
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it's flawed, what is the common denominator as to why retail
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logic fails more times than it wins, I'm not saying it can't
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win. I'm not. Now I'm not saying that retail traders always
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lose. And I'm not saying that a retail trader can't be
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profitable, even using retail logic. But they have to make a
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departure from all things retail, at some point, they have
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to inject their own experience into the analysis. And that
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experience is going to be a byproduct of looking at things
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experientially and seeing, okay, I've learned this pattern
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in the books, I've seen this author, I've seen this, you
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know, educator or trader guru mentioned this idea. But I
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have seen in this instance, when that patterns there, it
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fails, because of other things that I didn't learn in other
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books. And you're going to have these epiphanies that's
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experienced that you can't just get from a book, I can't
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transpose all of my experience, I can talk about things that
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I learned experientially, and like what I'm going to show
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you here, but it's important for you to understand it. The
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main common denominator is the markets are manipulated, and
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they're manipulated not on a random basis, but they're
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manipulated with a role based structure. So I'm going to
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give you a little bit of the details and how you can start
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looking for these types of signatures in price. So if you
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look at this dollar CAD, we have an old low here and price
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has rallied up now retail logics dates that we have this low
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as a support level, why? Because price moved away from
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there. We won't go into describing why it would have turned
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there from a retail trader, they just deem it as well this
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support because why? If price hits it and repels then it's a
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support level. Okay, that might be simple enough for you to
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subscribe to. I don't look at it like that I look at it as
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Okay, there is now engineered liquidity. Now, what does that
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mean? That means that the market has turned on a dime here
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and rallied higher. I see this as a liquidity pool of sell
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side orders. Okay, sell side liquidity. Anyone that would
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have an order below that would be a seller they want to sell
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Why would they want to sell below that?
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Because anyone that's long here, or even chasing price,
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they're going to look back to this level and feel confident
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that well it bounced there before so even if it starts to
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come down, which may be very uncomfortable for them. They
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have belief and faith and confidence that their books have
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indoctrinated them into believing that this is a level that
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should prevent price from going lower and I To think like
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that, until I lost thousands of dollars. And then it quickly
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dawned on me that I'm probably not following the right
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things. So I want you to think about that low with the
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target or Bullseye of the price wanting to go down to that
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level to attack the liquidity at rest below that low. Now,
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it may take months before it gets to this low, but if it
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gets to this low, this is what I want you to start looking
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at. And it doesn't only work on daily charts, this works on
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hourly charts, it works on four hour charts, it works on
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weekly charts, okay. So it's important that you know that
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this liquidity idea I'm teaching you here is just part of
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the framework. But we can see eventually, on the ninth of
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November, price trades down and goes below that low. This is
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an important event, when this day runs below this low. It's
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a crucial event algorithmically, because what it's doing is
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it's going into a pool of liquidity. Now, we don't know with
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any absolute assurity that what I'm going to outline here is
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going to unfold, but I'm going to give you the things you'd
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look for to build confidence that it is likely to. And
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you'll see by going through your own charts, how fast you
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can see these scenarios developing. We're going to go down
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to an hourly chart and study this fractal where it goes
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below this low here, and I'm going to release information to
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you that would otherwise not be shown on my YouTube channel.
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So let's go over to the hourly chart now. Alright, so here
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is the hourly dollar CAD chart. Now right away, it probably
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doesn't look like much to you. Okay, but I'm going to add
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annotations in a moment. But I want you to take a look at
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some of the things without having any scribbles any kind of
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annotations or markings or labels on the chart. Just let me
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flesh it out for you a little bit. And then we'll throw the
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lipstick on the chart, you should be able to see this high.
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And this low as a important price range. Now what makes it
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important, it's the most dominant price range in this
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portion of price action. So whenever I'm looking at price, I
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look for clear, discernible price ranges. When the range is
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clearly defined. As you can see here, what I do is I want to
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look for reference points based on measurements that are
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very generic. Okay, so in other words, I want to know what
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this high is here on this candle. And I want to know what
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the low of this candle is. Now, we're looking at this with
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the expectation that we're anticipating a run below that,
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but we don't know if it's going to continue. We wait for
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something to occur, which I'll outline here. And then once
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it happens, it gives us framework for short term bias and
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withdrawal and liquidity is only in an opposing order. In
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other words, we see a an attack on sellside liquidity with
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this day here. If something occurs as I outline, that will
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be your greenlight to anticipate opposing by side liquidity
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to be taken. Okay, so the concept I'm showing you here is
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purge and revert. Okay, purge and revert. Right. So when we
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look at liquidity, you want to be able to look at it on the
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basis of daily highs and lows. Now when you look at daily
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highs and lows, you can add period separators to your chart
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like tradingview.com allows you to do I'm not sure why it
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takes so long to load up like that. But there it is. But if
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you put the period separators on trading view, this is the
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levels that you're going to get. Now, I'm not going to argue
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that what I'm going to show you use better or that you can't
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use this either. I'm just teaching you the way I look at it.
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Okay, so if you're here on my channel, that more or less
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indicates that you're interested to see how I think about it
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may not subscribe to everything I say. In fact, I would
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count you not to do that. There's things I'm going to say in
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this video and maybe in other videos that will be offensive
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to you because you are holding fast to your your, your logic
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your system, your your method. And if it's profitable, don't
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allow me to change your mind about something that may be
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working for you. But if you can take something from the
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things I'm going to show you here and glean insight that may
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improve upon what you're already doing. That's really my
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only intention here.
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Okay, but it will be better if you could suspend all of the
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previous ideas that you have about price. Okay, and looking
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for things. I don't do it like this. Okay, so what I do is I
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look at the midnight to midnight timeframe, and I delineate
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my session breaks like that. So it'll look like this. Okay,
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so all my vertical lines here are midnight to midnight, New
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York. Time. Once this low, which is highlighted with this
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line here, that's that old daily low. And we see that run
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below the old daily low here that is a purging of liquidity.
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Now, once this purge occurs, we want to see the day of that
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purge, we want to start looking backwards. Okay. And other
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video series and other videos and other commentaries I've
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done with forex and trading technical analysis concepts and
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such. You'll hear this repeat three days, okay, I use a
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three day range of look back. Okay, if you look for the last
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three days, you'll have all the liquidity pools you need to
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make money, you'll have all the liquidity pools to target
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for your trades, you'll have all the liquidity pools that
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you could use for trade entries. And you don't need anything
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other than that. You don't need to have a 20 day look back
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period, you don't need to have a 60 day you don't need to
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have a 40 day, you don't need to look back on your weekly
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charts and see how many times something hit a level 14
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different times to have any faith in the market does not
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look back 20 years ago. The market does not look back five
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years ago. Okay, it looks at pre determined price levels.
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And that's the reason why the algorithms operate the way
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they do. And what I mean by that if for some of you that are
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not technically inclined or familiar with computer
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programming, for those that are This will make a lot of
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sense to you. But those that aren't, just bear with me, for
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the folks that are technically inclined, I'm not trying to
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talk down to those individuals that aren't, I'm just trying
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to be as inclusive as possible and comprehensive. So that
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way you understand what I'm saying here, so it doesn't go
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right over your head. Because I can clearly see, there's
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going to be a lot of people that are going to be confused by
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this lesson. But if you just take it for what I'm going to
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show you here and then go into your own charts, you'll see
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what I'm referring to, and then it'll click so the day of
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the purging. Now what's the day it runs below that old daily
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low? When that happens? We count that as day one. Okay,
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that's day one of that event of purging. We wait to see if
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it goes higher and reverts, not reverses. Okay, I'm not
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saying reversal. I'm saying revert What is it reverting to?
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It's reverting to buy side. So it draws to sell side
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liquidity. And that's counted as day one. That is day one,
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day two, day three. That's our look back on the day of
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liquidity purge. So the day it occurs, you'd look back three
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days. Now, inside the range prior to the liquidity purge,
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you got to look back and see where is that range. Now you
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could have looked at this, say if you're looking at a 15
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minute chart, maybe you would have seen it as this high to
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this low. And that's fine. There's nothing wrong with that
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you will be just using five minute charts to get the same
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premise I'm showing you here on an hourly chart. It's all
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scalable folks. The things that I teach are very friendly to
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making it your own. I don't mean that by saying take my
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content, rename it and put a YouTube video up. Okay, that's
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not that's not what I'm saying here. What I'm saying is it
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allows you the freedom and flexibility, because if the
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method and concepts are legitimate, it will allow anyone any
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number of people to come in and form their own model and
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which doesn't seem logical to a new trader or someone that's
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a neophyte someone coming to this for the first time. Like
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it was for me, there only is one way of doing it
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successfully. And I've learned it took me about six years to
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get there. But when I first started in 1992, it took me six
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years before I realized that there isn't one way to be
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profitable. There is a myriad of ways, but there are certain
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things that you need to understand that puts the odds more
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in your favor than if you didn't know it. And the
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adversities that you have and suffer through are really
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avoidable. Okay. You have to at some point, you have to
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admit that these markets are 100% controlled. They are we
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have
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breakers in the marketplace that says once it trades this
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much trading halts for a little while. Okay, isn't that a
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measure of control? Sure it is. And it's not limited to that
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they know where these markets are going to go. They're
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driven there. Okay. And this is an example of engineered
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liquidity. Engineered liquidity is where they run down, take
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those sellers out of the marketplace for what purpose. It
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allows individuals that are on smart money side of things.
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Informed traders, okay, large institutional traders, bank
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traders, and they will use that liquidity to be a
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Counterparty to their body. So it is a way of looking at
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price and saying, okay, I don't need to have an overbought
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oversold indicator, I don't need to have a divergence in an
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oscillator, I don't need to have harmonic on my side, I'm
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just looking at where liquidity is. And if we see an old
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daily low taken, that is a significant pool of liquidity.
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There's lots of orders below an old low, like I indicated on
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the daily chart before transitioning to the hourly. But this
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event where it goes below that low, it's being paired with
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smart money that wants to buy now, right away some of you're
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looking as well, this is all hindsight. I'm teaching it
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through hindsight. But I promise, if you go through your
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charts, the things I'm showing you here, they repeat over
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and over again, which is a basis for a model, this could be
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your unique trading model. And it's not really shown
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anywhere in any of my content. I don't even teach this even
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in mentorship. What I'm showing you here is fresh, but it's
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using concepts that I've touched on even in this free
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youtube channel. And in my mentorship, so I'm blending both
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of the worlds that are inside my mentorship and outside, I'm
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bringing them together with something for free right here.
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So that way you can gain a greater understanding what the
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markets are doing and why they're doing it. If this is true,
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if my assumption and my argument that I posed to everyone
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that comes to me, if these markets are not 100% manipulated
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by an algorithm, then the things I'm going to show you here
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won't hold up. In price runs below, an old low that sells
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high liquidity has been purged only if we start to move away
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from it. Now it might be a sweep on stops, and then it
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continues higher. But if it runs below it, and then goes
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back above a specific level, what level would that be, but
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we want to look at the day that it occurs and runs the
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liquidity out. So this day here, I've annotated the daily
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high, if that high is traded to and through, that is a
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market structure break only on the basis of a liquidity
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purge. Now, it does not mean it's 100% successful, it just
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means that from an algorithmic standpoint, if we're looking
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at logical steps of processes, we look for this, If this
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occurs, then we look for this, if that occurs, then we look
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for this. And if that occurs, we look for that. So it's a
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matter of looking at a recipe for a model that would be
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unfolding dynamically. So if this day's high, when it takes
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the liquidity out, is broken on the upside here, I don't
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need it to close above it. That's not I don't need that.
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Because the narrative is it ran below an old low for
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liquidity. If it's going to go higher, the algorithm will
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start it's macro and macro is a short order of processes
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that begin and go step by step. And it's like a small little
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algorithm and incense and the large algorithm that creates
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and controls price action. It's just a bunch of smaller
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little algorithms that tie together. And it's very complex,
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obviously, but just know that you can reduce it to something
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as simple as what I'm showing you here. It may not seem
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simple right now, because I'm a little wordy. But I need you
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to understand there's certain things that are at play here
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that cause these things. Okay, that occur. So the rumble of
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the liquidity, if that day's highs broken, we see it here,
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then we can start looking for buy side liquidity for the
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algorithm to revert to that
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here's the previous day's high. That's all these little
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blind segments are I'm looking at the daily high, that is
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between 12 and 12. Midnight each day. So this day's
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liquidity is take taken out. But it's a break in market
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structure on the basis and narrative that we've taken
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Southside liquidity out. So now once it does this, where do
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we anticipate price going to? Well, you first have to revert
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back to this high and this low. So we're looking at how much
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we're going to retrace from this low into this high, it may
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not ever get back to that high. And and here's the thing,
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you don't need to have it go there. But you need to know
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where the midpoint is. And that's what this level is here.
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So that's basically equilibrium between the high and the low
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of that obvious range. Now the algorithm knows this range
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high and it knows the low it forms here. The midpoint is
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equilibrium. So what we're doing is we want to look at three
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days back as far as in terms of time, the liquidity above
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the daily highs as far back as day three, and the filter is
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the midpoint, or equilibrium of the range that's traded in
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prior to the liquidity being purged. Now I already know some
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of you in some of your ears are smoking right now you're
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thinking man, this is too much. I need to trend line right
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now. Somebody taught me a moving average. I see He's killing
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me here. Trust me, okay, when you watch this video a few
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times and go into your charts, you'll see it, it's there.
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But the range needs to be filtered. Okay, once we get to the
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50 point, or 50% level of the high and the low, that's all I
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really use a Fibonacci for folks, you know, I'm just looking
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for equilibrium. And anything at or above it, in my mind is
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expensive. In other words, it's a premium market. So it's
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going to require a whole lot more for me to be a buyer. And
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many times it will negate me being a buyer. But it will not
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disqualify a long entry that I have maybe entered and I did
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not. So we are clear. Now I didn't take a trade on this, I'm
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just showing you conceptually how you can study and see
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these things going forward. But you can use these ideas to
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frame the logic on holding long positions or partials to get
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to this level. And then day three, in this case here. So
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what I mean by that, we have the high the low, the logic
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behind the run on stocks on the sell side liquidity raid,
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okay, so this is purged, if we get a run above the day of
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the purging, and then we start looking at the previous day's
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highs. And above that is going to be liquidity until we get
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to the 50% level of the range. Once it does that, we are in
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an iffy like it might not continue going higher, it could
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but it might not. But if we have day three still in close
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contention with this level. Now it's not that far above it.
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And it's not a lot of range in terms of where the
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equilibrium is and where the previous day or day threes high
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would be that Bice illiquidity would be potentially
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attacked. So we can see each day on the 10th of November, we
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had to break above the old high here, market structure is
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broken. So now we're thinking by side liquidity is going to
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be the next draw. That means your bias on a short term is
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look for this high to be tapped. And maybe this one, we
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don't need to go all the way back up here. Okay, we don't
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need to go all the way back up to the last up close Canada,
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which is a bearish order block, okay, you're looking at high
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probability, high probability. This is what this is high
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probability short term trading. So if we see that they're
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all in beisa, liquidity is the context that the algorithm is
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going to be operating under, they've already done the
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damage. So going down, traders are going to be looking for
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continuation, they're gonna be looking for bear flags,
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they're gonna be looking for a bearish gartley, they're
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going to be looking for bearish, you know, anything to get
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them short. And supply and demand traders gonna be looking
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for supply zones to go short at traders that use simple
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support resistance levels are going to be looking at, okay,
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well, we bounced here, let's draw that out in time, and it
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might sell off here. And when it starts to go down like
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that, they get really excited, are you thinking like this
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are thinking, well, we have a break in market structure,
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your eye goes here, where their eyes looking for this level
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to be touched again, because its support level, you see the
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paradigm shift that's taking place already in a short little
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video. Now it feels long for some of you. But it's a very
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short window of time that I've framing a mode of logic that
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repeats all the time on all timeframes. But if we're going
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to use it in this context, using and look back of three
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days, then it's framed on a daily chart,
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and it can be reversed. Obviously, if we're looking for runs
447
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above old daily highs. But look back is three days,
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equilibrium is the high and the low split in the middle. So
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all I did was to get that level and you put a Fibonacci on
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this high to this low and whatever the 50 level is you
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annotate that on your chart. So each day after this day, you
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are looking for this pool of liquidity to be traded to and
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this pool of liquidity to be traded to once it does that
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high probability goes away. It changes. Okay, so the
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algorithm goes into a different mode of delivery. It can
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become a deeper retracement or it could accelerate into that
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high. That's not what I'm going to teach here. I'm not
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teaching that that and I know some of you I already say Say
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Say you're holding back. No, it just requires a whole lot
460
00:29:27,839 --> 00:29:30,779
more to teach. And I don't have the time for it and you
461
00:29:30,779 --> 00:29:36,149
wouldn't want to sit through it anyway. Each day, this high,
462
00:29:36,809 --> 00:29:40,469
you know being broken up this creates the microstructure
463
00:29:40,469 --> 00:29:44,009
shift by side liquidity here if we draw that out in time
464
00:29:53,339 --> 00:29:55,049
and we're going to draw this one out in time.
465
00:30:00,659 --> 00:30:08,459
Okay, and this one here, because it's above the three. And
466
00:30:08,459 --> 00:30:11,219
it's the last one. So if we continue with that bias, you
467
00:30:11,219 --> 00:30:14,249
know, we'll see if there's any continuation of that logic
468
00:30:14,249 --> 00:30:17,609
reaching for that liquidity. Alright, so now we have
469
00:30:17,939 --> 00:30:21,959
Basilicata here by Sella, Cody here, and by Sally Cody here.
470
00:30:22,439 --> 00:30:26,909
And we're going to look at the 11th of November. And we're
471
00:30:26,909 --> 00:30:30,839
gonna look at that on a 15 minute chart. So let's drop down
472
00:30:30,839 --> 00:30:33,929
to the 15 minute time frame and look at this here and how it
473
00:30:33,929 --> 00:30:37,469
attacks these blue levels. Alright, so here is the 15 minute
474
00:30:37,469 --> 00:30:41,039
timeframe of that dollar CAD. And we can see the short
475
00:30:41,039 --> 00:30:45,359
little lines are always going to be individual daily highs,
476
00:30:45,929 --> 00:30:49,829
the elongated blue lines are going to be those old liquidity
477
00:30:49,829 --> 00:30:54,239
pools that we're looking for price to trade up into. So on
478
00:30:54,239 --> 00:30:58,049
the 11th, we have price trading in here. And again, all I'm
479
00:30:58,049 --> 00:31:01,829
annotating here is this candles high, which makes that high,
480
00:31:02,009 --> 00:31:05,969
we don't use the midnight high. When we're looking at all
481
00:31:05,969 --> 00:31:09,359
this data here. If this midnight candle makes a higher high,
482
00:31:09,539 --> 00:31:13,049
we don't call the 11th daily high that one because it's
483
00:31:13,049 --> 00:31:17,429
really technically the 12th. So we're using only the data
484
00:31:18,269 --> 00:31:22,259
that makes the individual day prior to midnight in New York
485
00:31:22,259 --> 00:31:25,349
time. So the highest highs and lowest low, that's what we're
486
00:31:25,349 --> 00:31:28,829
looking for. But soon as we get to midnight, everything
487
00:31:28,829 --> 00:31:33,659
starts new. That's a new range for the day. So we have
488
00:31:33,689 --> 00:31:36,779
equilibrium here. So we know the price could jump to that,
489
00:31:36,869 --> 00:31:41,069
or at least this level here. And this level is the initial
490
00:31:41,069 --> 00:31:43,829
one because it's below equilibrium. And it's the old
491
00:31:43,829 --> 00:31:49,379
liquidity pool on day to look at how price trades back down
492
00:31:49,409 --> 00:31:54,449
in to this run here. Isn't this an optimal trade entry?
493
00:31:54,989 --> 00:31:59,699
Watch. Here's your swing low. Alright, so here is the
494
00:32:00,059 --> 00:32:03,359
Fibonacci laid on that price swing, I'm using the bodies of
495
00:32:03,359 --> 00:32:05,969
the candles, again, not using the wicks and the tails
496
00:32:05,969 --> 00:32:08,399
because the bulk of the volume is in the bodies. So it's
497
00:32:08,399 --> 00:32:11,549
going to give you a pure read on where the buy signal is
498
00:32:11,549 --> 00:32:16,019
going to be. Alright, it doesn't mean that you can't use the
499
00:32:16,049 --> 00:32:18,419
wicks and tails. It just means when I'm looking for optimal
500
00:32:18,419 --> 00:32:21,299
trade entry, I prefer to use the bodies of the candles
501
00:32:21,299 --> 00:32:24,719
because it will give you a pure read on entry. If I'm
502
00:32:24,719 --> 00:32:28,379
looking at ranges, okay, like what I outlined on the hourly
503
00:32:28,379 --> 00:32:30,989
chart and showed you where the high was and the low was
504
00:32:30,989 --> 00:32:34,379
intended to 50%. When I'm looking at finding equilibrium, I
505
00:32:34,379 --> 00:32:38,249
will use the wicks and tails. Okay, I get a lot of questions
506
00:32:38,369 --> 00:32:41,579
in by way of email and people get confused. You know, why
507
00:32:41,579 --> 00:32:44,759
did I say to um, use the wicks and sometimes the bodies,
508
00:32:44,879 --> 00:32:48,029
he's not consistent, it confuses me, I just answered that
509
00:32:48,029 --> 00:32:51,419
for you. Okay, the bodies are going to give me the pure
510
00:32:51,419 --> 00:32:55,859
entry point. The wicks and the tails are used just for
511
00:32:55,859 --> 00:32:59,069
measurement of ranges. Okay. So if I'm going to look for a
512
00:32:59,069 --> 00:33:03,209
pattern of entry, I'm using the bodies. If I'm looking for
513
00:33:03,239 --> 00:33:06,659
equilibrium measurements, then it's always going to be wicks
514
00:33:06,659 --> 00:33:10,349
and tails. Okay? When it comes to order blocks, that's a
515
00:33:10,349 --> 00:33:14,069
different theory, which I won't touch on here. But again,
516
00:33:15,689 --> 00:33:19,139
take what you get. So we have the optimal trade entry in
517
00:33:19,139 --> 00:33:21,839
here trades down to that, and we have a standard deviation
518
00:33:21,869 --> 00:33:26,459
of negative one half, and it overlaps basically with that
519
00:33:26,459 --> 00:33:30,149
old liquidity pool. And then we have trading up to
520
00:33:30,149 --> 00:33:34,469
equilibrium here at negative one. We have negative two just
521
00:33:34,469 --> 00:33:38,999
above the old liquidity pool. And we have negative 2.5,
522
00:33:39,029 --> 00:33:43,499
which is with this new liquidity pool on Thursday, before
523
00:33:43,499 --> 00:33:48,809
Friday's trading. And the market trades there on Friday. And
524
00:33:48,809 --> 00:33:52,829
again, we have price trading down initially creating a Judas
525
00:33:52,829 --> 00:33:56,879
swing, what's the context, we're looking for price to revert
526
00:33:56,879 --> 00:33:59,999
back to buy side liquidity, because it's already done its
527
00:33:59,999 --> 00:34:07,679
job. Over here running that old daily low. So each day we're
528
00:34:07,679 --> 00:34:13,319
looking for clues. If it's going to go to the box on the
529
00:34:13,319 --> 00:34:15,839
corner each day, it's going to be reaching for a specific
530
00:34:15,869 --> 00:34:19,319
level of liquidity. It's not guesswork, it's very easily
531
00:34:19,499 --> 00:34:24,029
discerned what is the previous highs were above that high
532
00:34:24,059 --> 00:34:26,429
can price reach to then price will start stair stepping
533
00:34:26,429 --> 00:34:29,639
towards that. It's not respecting trend lines, it's not
534
00:34:29,639 --> 00:34:33,269
respecting patterns. It's respecting where the liquidity is.
535
00:34:33,659 --> 00:34:37,259
Okay? The markets going to go where their orders. It has no
536
00:34:37,259 --> 00:34:41,879
regard or respect for anybody's trading pattern. Okay. The
537
00:34:41,879 --> 00:34:45,749
markets going to go where there is Counterparty period. And
538
00:34:45,749 --> 00:34:48,239
if there isn't enough Counterparty there, the market will
539
00:34:48,239 --> 00:34:51,149
create it, it'll engineer it. It'll run up,
540
00:34:51,330 --> 00:34:54,840
blow out equal highs. It'll blow out be koulos and it'll
541
00:34:54,840 --> 00:34:59,010
change sentiment on the basis of that event. Here we have
542
00:34:59,010 --> 00:35:02,850
the market trading Above the equilibrium trading to an old
543
00:35:02,850 --> 00:35:08,340
liquidity pool and trades back down. Now, we still have time
544
00:35:08,340 --> 00:35:11,790
in the week, and it can still continue. But isn't this an
545
00:35:11,790 --> 00:35:17,850
optimal trade entry as well. And a breaker, we have a low, a
546
00:35:17,850 --> 00:35:23,190
high, a lower low, use the highest up close candle. And this
547
00:35:23,190 --> 00:35:31,560
adding this in here just for bonus, no extra charge. We have
548
00:35:31,620 --> 00:35:34,890
the body right there. So when the market trades down into
549
00:35:34,890 --> 00:35:39,660
that, that's your bullish breaker and your order block, down
550
00:35:39,660 --> 00:35:43,230
close candle before this displacement, optimal trade entry,
551
00:35:43,500 --> 00:35:47,130
we'll add that again and watch it i'm doing i'm putting it
552
00:35:47,130 --> 00:35:50,940
on the bodies. We get above Thursday's liquidity pool here,
553
00:35:50,970 --> 00:35:54,240
not by much. But we have a standard deviation of negative
554
00:35:54,240 --> 00:35:57,270
one, that with these equal highs here or relative equal
555
00:35:57,270 --> 00:36:00,660
highs, we could potentially see it, try to get up and snag
556
00:36:00,660 --> 00:36:03,450
that. I'm not saying it will, because we're above
557
00:36:03,450 --> 00:36:06,660
equilibrium. But that is how I would look at it. Now if this
558
00:36:06,660 --> 00:36:11,280
was Say, say this was Tuesday, Wednesday, and we were still
559
00:36:11,280 --> 00:36:14,070
in an active trading week, then I would still be hunting
560
00:36:14,070 --> 00:36:17,670
Long's and I would look for a standard deviation of negative
561
00:36:17,670 --> 00:36:20,640
one or negative one and a half. Because it would be
562
00:36:20,640 --> 00:36:23,880
expanding above the relative equal highs. And I would look
563
00:36:23,880 --> 00:36:27,360
for it for like 10 2030 pips. And I would look for that type
564
00:36:27,360 --> 00:36:30,420
of thing to occur and try to attack that 132 big figure.
565
00:36:30,960 --> 00:36:33,720
That is not analysis. I'm just saying that that's how I
566
00:36:33,720 --> 00:36:36,300
would use it. If it were, you know, still in an active
567
00:36:36,300 --> 00:36:40,200
trading week. Now, what am I showcasing here? Am I just
568
00:36:40,200 --> 00:36:43,290
talking about hindsight and just trying to dazzle you with
569
00:36:43,290 --> 00:36:46,320
something that's obvious in the charts. Some of you might
570
00:36:46,320 --> 00:36:49,080
come away from this video with that opinion. And you're free
571
00:36:49,080 --> 00:36:52,470
to have that. But those individuals that go into the charts
572
00:36:52,500 --> 00:36:56,190
and start looking at what I'm showing you here is simplest
573
00:36:56,220 --> 00:37:01,740
short overview of what I just did here, you look for areas
574
00:37:01,740 --> 00:37:05,940
in the marketplace, with old highs and old lows. And if the
575
00:37:05,940 --> 00:37:11,520
market trades down below it, wait to see if it wants a break
576
00:37:11,550 --> 00:37:14,910
the day it trades below it in words, this is the event day.
577
00:37:15,690 --> 00:37:17,820
If it trades above that, then we could potentially have a
578
00:37:17,820 --> 00:37:22,290
market structure shift. So we start looking for previous
579
00:37:22,290 --> 00:37:24,660
day's highs and the liquidity that we resting above it.
580
00:37:26,340 --> 00:37:29,460
previous day's high with liquidity resting above it, you are
581
00:37:29,460 --> 00:37:32,400
not looking back three days every time a new day comes back
582
00:37:32,400 --> 00:37:35,580
and then finding that we're looking at three days back
583
00:37:35,610 --> 00:37:39,810
counting day one of the purge on liquidity. That is how the
584
00:37:39,810 --> 00:37:43,020
algorithm reads it. How does it select which day Michael, if
585
00:37:43,020 --> 00:37:45,420
there's an algorithm how to do it, I'm telling you, this is
586
00:37:45,420 --> 00:37:48,840
one of the ways that it does it. It looks back three days
587
00:37:48,840 --> 00:37:50,970
now why three days? You're probably asking, why is it three
588
00:37:50,970 --> 00:37:57,120
days ICT? Well, there is classically there is a not to show
589
00:37:57,120 --> 00:38:06,510
it to you like this. If you're looking at a chart, and
590
00:38:26,220 --> 00:38:32,880
we're looking at an old low. I teach this and this is really
591
00:38:32,880 --> 00:38:36,960
this is a fundamental truth that if you look at most turning
592
00:38:36,960 --> 00:38:43,680
points in the marketplace, you see some kind of depiction of
593
00:38:43,710 --> 00:38:46,110
a turning point like this in price, this would be like a
594
00:38:46,110 --> 00:38:49,470
swing low. Now if you're using things like with mt four,
595
00:38:49,470 --> 00:38:53,910
they have a fractal indicator. I don't I'm not I've never
596
00:38:53,910 --> 00:38:55,710
been a fan of that. And even if you look back at the stuff I
597
00:38:55,710 --> 00:38:58,950
did, when I stepped down the stage, just to teach on forex
598
00:38:58,950 --> 00:39:04,260
in 2010. I went against that whole empty for fractal
599
00:39:04,260 --> 00:39:08,730
indicator because it requires five candles and five candles.
600
00:39:09,480 --> 00:39:12,960
Good grief, the moves already done. We're anticipating the
601
00:39:12,960 --> 00:39:15,960
lowest candle to go into something like this generally,
602
00:39:16,200 --> 00:39:18,990
that's how I take as I teach it, there's something down
603
00:39:19,050 --> 00:39:22,530
there we're anticipating the next candle if it has a higher
604
00:39:22,530 --> 00:39:26,760
low right away, that's the turning point for me. So we look
605
00:39:26,760 --> 00:39:31,890
back three days because this event like it does hear when it
606
00:39:31,890 --> 00:39:33,840
runs below the old daily low that's indicated by this line
607
00:39:33,840 --> 00:39:38,490
here. When that occurs, it might not just be a one day
608
00:39:38,490 --> 00:39:41,490
event, it might be a two day event where it goes even
609
00:39:41,490 --> 00:39:45,720
deeper. So when it creates that, we count that as day one,
610
00:39:45,810 --> 00:39:49,530
two, and three, and we identify that liquidity on those
611
00:39:49,530 --> 00:39:56,550
days. If it goes lower, I'm still going to refer back to the
612
00:39:56,550 --> 00:39:59,640
original day three. It just gives us one more day of
613
00:39:59,640 --> 00:40:03,930
potential liquidity, it may reach four. But it's a three day
614
00:40:03,990 --> 00:40:06,210
on the basis that it creates turning points. And just like
615
00:40:07,110 --> 00:40:09,720
everything else I teach, if you just reverse it and put this
616
00:40:09,720 --> 00:40:14,040
here, the swing highs form, generally like this, we have a
617
00:40:14,040 --> 00:40:18,300
high, a higher high and a candle, it has a lower high. Now
618
00:40:18,330 --> 00:40:20,940
this candle is high might be lower than this candle is high,
619
00:40:20,970 --> 00:40:26,580
or it could be higher. The real point is that there's a
620
00:40:26,580 --> 00:40:29,370
candle that has a lower high to the left, a lower high to
621
00:40:29,370 --> 00:40:33,960
the right. And that's usually a classic swing high. Swing
622
00:40:33,960 --> 00:40:38,250
low, again, has a higher low to the left, a higher low to
623
00:40:38,250 --> 00:40:42,270
the right. And this could be a higher low than this candle,
624
00:40:42,300 --> 00:40:47,640
or it could be lower, it doesn't that's not what we're
625
00:40:47,790 --> 00:40:51,420
really pressing here. There is logic behind what I'm showing
626
00:40:51,420 --> 00:40:55,110
you here, you can use other things for that, which is a
627
00:40:55,140 --> 00:40:58,590
completely different lesson. But for just a classification
628
00:40:58,590 --> 00:41:02,070
with swing high swing low for turning point basis. This is
629
00:41:02,070 --> 00:41:05,490
what it graphically looks like. Most times it doesn't always
630
00:41:05,880 --> 00:41:09,180
appear like that. But on most cases, it does look like that.
631
00:41:09,180 --> 00:41:11,910
And that's the reason why the logic is three days because
632
00:41:12,840 --> 00:41:15,090
the turning points generally form with that type of
633
00:41:15,090 --> 00:41:21,300
structure. Alright. So your job your homework, going forward
634
00:41:21,300 --> 00:41:24,990
using this information is to see how the market reaches for
635
00:41:24,990 --> 00:41:26,940
liquidity. I get a lot of questions all the time, how do you
636
00:41:26,940 --> 00:41:29,610
know what side of the market to trade on? Because if I could
637
00:41:29,610 --> 00:41:33,420
do that ICT if you could just teach me how to learn to be a
638
00:41:33,420 --> 00:41:36,330
buyer or seller? Is it gonna be an update or a down day? I
639
00:41:36,330 --> 00:41:39,030
will be profitable. And I'm going to tell you, you're not
640
00:41:39,030 --> 00:41:41,790
correct in thinking that. Because there's other things is
641
00:41:41,790 --> 00:41:43,890
going to get in the way. When you think you've scratched
642
00:41:43,890 --> 00:41:46,440
that itch, then you'll have 20 more that says, Well ICT
643
00:41:46,440 --> 00:41:48,450
talks about the candles and the wicks and then your argue
644
00:41:48,450 --> 00:41:52,200
about that. When what I just gave you here, did I bring in
645
00:41:52,200 --> 00:41:55,710
Commitment of Traders reports? No. Did I bring in the
646
00:41:55,710 --> 00:41:59,310
traders Trinity, which I don't even look at anymore? No. Did
647
00:41:59,310 --> 00:42:03,930
I talk about pivot points? No mitigation blocks? noop? Did I
648
00:42:03,930 --> 00:42:09,870
teach catapult whiplash? Nope. There's lots of different
649
00:42:09,870 --> 00:42:12,360
patterns. And there's lots of different ways that you can
650
00:42:12,360 --> 00:42:15,450
take small little samplings of the things I teach with the
651
00:42:15,450 --> 00:42:18,630
proper context and narrative. And it becomes a complete
652
00:42:18,630 --> 00:42:22,620
model, you need to look at all of these days here with the
653
00:42:22,620 --> 00:42:25,290
times of day that I teach, which is the London open kill
654
00:42:25,290 --> 00:42:27,510
zone, the New York open kill zone, the London close kill
655
00:42:27,510 --> 00:42:31,200
zone. And look how these patterns form. There's optimal
656
00:42:31,200 --> 00:42:34,890
trade entries in these days based on the logic that it's
657
00:42:34,890 --> 00:42:38,010
going to reach for the liquidity above here. And here,
658
00:42:39,060 --> 00:42:39,630
period.
659
00:42:40,950 --> 00:42:44,850
It's structured, it's not contrived. It's not foreign
660
00:42:44,850 --> 00:42:47,610
fitted, because if you go back and look at every other event
661
00:42:47,610 --> 00:42:50,340
and retry, here's everything, reverse it and look at how the
662
00:42:50,340 --> 00:42:54,630
market does when it trades above old highs. But here's the
663
00:42:54,630 --> 00:42:58,800
thing, you're going to if you are going into this to find
664
00:42:58,920 --> 00:43:02,250
times where it fails. Okay, if that's what you're trying to
665
00:43:02,250 --> 00:43:06,060
do right away, you're going to miss the lessons that it's
666
00:43:06,060 --> 00:43:09,930
going to show you by doing it with the investigative
667
00:43:09,930 --> 00:43:13,770
approach. In other words, does it show this logic because in
668
00:43:13,770 --> 00:43:17,040
future lessons, I'll touch on this again, and it'll be on my
669
00:43:17,040 --> 00:43:21,660
YouTube channel. But you need to first see this, okay,
670
00:43:21,660 --> 00:43:24,840
anything I mean, I can look at my order block theory, and go
671
00:43:24,840 --> 00:43:28,350
in and find 50 examples where it would be viewed as failing,
672
00:43:28,380 --> 00:43:30,960
if you just look at it from the perspective that YouTube
673
00:43:30,960 --> 00:43:33,690
people put up videos and they think they understand my order
674
00:43:33,690 --> 00:43:37,380
block theory, no, it's not complete. My mentorship is not
675
00:43:37,380 --> 00:43:42,720
exhausted that you can always torture the data. And if you
676
00:43:42,720 --> 00:43:45,930
manipulate, you know, hard and fast and long, long enough,
677
00:43:45,960 --> 00:43:51,240
it will confess to anything. But there has to be a logic in
678
00:43:51,240 --> 00:43:54,900
play. So let's go back in closing, take everything off and
679
00:43:54,900 --> 00:43:57,900
go to a daily chart, the market is consolidated for a long
680
00:43:57,900 --> 00:44:01,620
period of time in here. And we have this old low, when the
681
00:44:01,620 --> 00:44:05,910
market drives down below that I don't care if it's going to
682
00:44:05,910 --> 00:44:08,460
go up a little bit and then continue going lower, because
683
00:44:08,460 --> 00:44:11,670
that's not a model I'm trying to frame here I'm not teaching
684
00:44:11,670 --> 00:44:14,610
you long term trading, I'm teaching you a short term way of
685
00:44:14,610 --> 00:44:17,730
determining where the next draw on liquidity is going to be,
686
00:44:18,210 --> 00:44:20,820
is it going to be aiming for the buy side or the sell side?
687
00:44:21,120 --> 00:44:25,620
Now there are other ways to discern whether buy side is
688
00:44:25,620 --> 00:44:28,350
going to be attacked or sell side liquidity to me attacked
689
00:44:29,430 --> 00:44:34,230
in that might be your model. But they all want to lean on
690
00:44:34,260 --> 00:44:37,500
general principles that are generic. And that means when we
691
00:44:37,500 --> 00:44:40,290
have a period like this and consolidation, this old low if
692
00:44:40,290 --> 00:44:44,280
it runs below that, even if it will go lower, and I'm not
693
00:44:44,280 --> 00:44:47,220
saying it will or won't here I'm just saying if it does or
694
00:44:47,220 --> 00:44:51,180
if it will or if it's more inclined to do so. All we're
695
00:44:51,180 --> 00:44:55,110
doing is looking at short term liquidity to frame short term
696
00:44:55,110 --> 00:44:59,460
intraday trades. That's all I'm posing that as a study on
697
00:44:59,460 --> 00:45:04,260
liquidity here. So I framed it on the basis of higher
698
00:45:04,260 --> 00:45:08,400
timeframe liquidity pools, which is sellside. Here, short
699
00:45:08,400 --> 00:45:11,640
term trading logic algorithmic principles, understanding the
700
00:45:11,640 --> 00:45:15,300
open float, where the markets going to attack a specific
701
00:45:15,300 --> 00:45:18,240
side of the marketplace until it gets to a specific
702
00:45:18,240 --> 00:45:21,930
threshold, and then it becomes low probability. Now,
703
00:45:22,110 --> 00:45:25,470
obviously, if it trades higher and goes more higher than
704
00:45:25,530 --> 00:45:29,880
I've outlined on that lower timeframe, then that's a model
705
00:45:29,880 --> 00:45:33,030
outside the scope of what I'm showing you here, it does not
706
00:45:33,030 --> 00:45:36,060
reduce its effectiveness here, it does not mean that this is
707
00:45:36,060 --> 00:45:40,140
any less of a model. And that longer term or intermediate
708
00:45:40,140 --> 00:45:44,610
term trading is better. It just means, which would resonate
709
00:45:44,610 --> 00:45:47,790
more with you as the individual because I'm talking in a way
710
00:45:47,790 --> 00:45:51,210
that it allows the flexibility of the reader and viewer of
711
00:45:51,210 --> 00:45:54,960
my videos to see if it resonates with them. If it doesn't,
712
00:45:55,200 --> 00:45:58,530
I'm not offended. No mentor should be offended, because the
713
00:45:58,530 --> 00:46:02,130
mentor should know that everything isn't always going to
714
00:46:02,130 --> 00:46:05,580
fall in the expectations and alignment with everybody's
715
00:46:05,580 --> 00:46:09,210
psychological makeup, you aren't always going to agree with
716
00:46:09,210 --> 00:46:12,810
everything I say. And the weak minded individuals that come
717
00:46:12,810 --> 00:46:16,380
here, and they they are met with something that is against
718
00:46:16,440 --> 00:46:19,740
the grain of what they believe in, they just quickly dismiss
719
00:46:19,740 --> 00:46:23,640
the entire channel. And they really dismiss the likelihood
720
00:46:23,640 --> 00:46:26,790
potentially picking up on some really amazing things for
721
00:46:26,790 --> 00:46:30,750
free. That may make them a stronger trader, the ones that
722
00:46:30,750 --> 00:46:33,360
come here, and they say, okay, that doesn't really resonate
723
00:46:33,360 --> 00:46:37,080
with me, but they go into a journal and say, Alright, I see
724
00:46:37,080 --> 00:46:39,420
t mentioned this, this, this, and here's my concerns about
725
00:46:39,420 --> 00:46:43,710
that, and why I don't feel any gravitation towards that at
726
00:46:43,710 --> 00:46:45,630
the moment. So
727
00:46:45,870 --> 00:46:48,960
it's not killing the idea, it just means that you have
728
00:46:48,990 --> 00:46:52,290
observed something, you've recorded your observation, and
729
00:46:52,290 --> 00:46:55,050
you kept an open mind about it. Because something else in
730
00:46:55,050 --> 00:46:57,660
the future that you may come in contact with with this
731
00:46:57,660 --> 00:47:00,540
video. Or maybe you're joining the mentorship, maybe you're
732
00:47:00,540 --> 00:47:03,510
not I don't care. But you'll come in contact with another
733
00:47:03,510 --> 00:47:07,530
lesson that it will say, Oh, that makes sense. Because I
734
00:47:07,530 --> 00:47:10,170
remember him talking about this other concept or this
735
00:47:10,170 --> 00:47:12,990
principle and how the markets deliver price. And then it
736
00:47:12,990 --> 00:47:15,990
becomes a complete understanding about something that you
737
00:47:16,020 --> 00:47:20,520
immediately dismissed initially. So always have an open
738
00:47:20,520 --> 00:47:24,720
mind, don't be, you know, close minded to the idea of
739
00:47:24,720 --> 00:47:27,420
learning something that may be uncomfortable at first, or it
740
00:47:27,420 --> 00:47:30,900
may feel too dry, like this lesson could be viewed as this
741
00:47:30,900 --> 00:47:33,480
is really boring. You know, you could have said this and
742
00:47:33,480 --> 00:47:36,750
five minutes. Yeah, I could have said if liquidity is taken
743
00:47:36,750 --> 00:47:39,630
below the old low, look back three days and see if it goes
744
00:47:39,630 --> 00:47:42,270
to the Buy, Sell liquidity. But that does not frame all the
745
00:47:42,270 --> 00:47:46,170
necessary logic that I gave you in this video. Okay, try to
746
00:47:46,230 --> 00:47:48,960
try to reduce it down to what you think it should be said.
747
00:47:49,350 --> 00:47:52,560
And then also lean on the things that I've also outlined in
748
00:47:52,560 --> 00:47:56,400
here that were important in terms of thresholds, what logic
749
00:47:56,430 --> 00:48:00,750
needs to take place, and understand also, that you may have
750
00:48:00,750 --> 00:48:04,500
been able to watch other videos, and you're more versed in
751
00:48:04,530 --> 00:48:07,200
the things that I've talked about in old videos. And that's
752
00:48:07,200 --> 00:48:12,240
usually what happens. People come they watch the videos. And
753
00:48:12,240 --> 00:48:14,490
they are highly opinion because they want to get to the next
754
00:48:14,490 --> 00:48:18,930
new stuff. But there are always new people coming in. And if
755
00:48:18,930 --> 00:48:22,890
I talk about something, I get waves of emails, if they're
756
00:48:22,890 --> 00:48:26,400
new. So I always like to try to sprinkle this within my
757
00:48:26,400 --> 00:48:28,500
videos that say, look, you know, you're not going to learn
758
00:48:28,500 --> 00:48:30,780
this in one video. And I can't encapsulate everything in one
759
00:48:30,780 --> 00:48:33,870
video because there's a lot of other subject matter that
760
00:48:33,960 --> 00:48:37,590
these things lean on. But I tried to reduce it to something
761
00:48:37,590 --> 00:48:42,390
that is scalable, you can see it and understand it logic,
762
00:48:42,390 --> 00:48:44,430
the things that the only moving parts is what I showed you
763
00:48:44,430 --> 00:48:47,730
here. Like I said that I didn't require all the other things
764
00:48:47,730 --> 00:48:51,450
that I know, and that you learned from me. You don't need
765
00:48:51,450 --> 00:48:55,350
all those things. And if you have a price action model is
766
00:48:55,380 --> 00:48:58,200
the the best price action models are the ones that can be
767
00:48:58,200 --> 00:49:01,830
reduced to the back of a business card. Okay, I actually did
768
00:49:01,830 --> 00:49:06,510
this on baby pips, when I was active on their forum. I did
769
00:49:06,510 --> 00:49:09,720
an article, and it was here's my business card. And I
770
00:49:09,720 --> 00:49:14,130
basically said, you know, you may have a lot of
771
00:49:14,280 --> 00:49:17,550
understanding about price. And I believe I do, and I believe
772
00:49:17,550 --> 00:49:22,440
my students do. But those that are profitable, can reduce
773
00:49:22,440 --> 00:49:26,010
the idea that they would use to frame a setup, from
774
00:49:26,010 --> 00:49:29,490
beginning to end with money management and everything. It
775
00:49:29,490 --> 00:49:31,800
can be reduced and written out on the back of a business
776
00:49:31,800 --> 00:49:35,640
card. Now my question to you is, do you have it in your mind
777
00:49:35,640 --> 00:49:39,420
that learning here is going to require you more information
778
00:49:39,420 --> 00:49:42,060
that you cannot fit on the back of a business card? Because
779
00:49:42,060 --> 00:49:44,520
if that's what your expectation is, if that's what you're
780
00:49:44,520 --> 00:49:48,450
afraid of, by you delving into this YouTube channel or even
781
00:49:48,450 --> 00:49:52,980
my mentorship, don't let that be a thing that is a problem.
782
00:49:53,070 --> 00:49:56,850
It's not it's, that's a normal fear and concern, because
783
00:49:56,850 --> 00:50:01,440
there's a lot of information but think of it like this If
784
00:50:01,440 --> 00:50:04,320
you're going to be a doctor, you have to learn a lot about
785
00:50:04,320 --> 00:50:08,670
things in the body that may not be your specialty. When you
786
00:50:08,670 --> 00:50:12,360
start practicing medicine, you may be a foot doctor or hand
787
00:50:12,360 --> 00:50:15,600
doctor, but you had to learn about the skeletal system. on
788
00:50:15,600 --> 00:50:18,780
the, on the cranium, near the clavicle, you had to
789
00:50:18,780 --> 00:50:22,860
understand you, the patella, the kneecap, all these things,
790
00:50:23,130 --> 00:50:27,540
they're not specific to the foot in the sense that
791
00:50:28,770 --> 00:50:31,650
anatomically, that's the area that you're studying. But
792
00:50:31,680 --> 00:50:37,380
something that is occurring in the knee, maybe a real reason
793
00:50:37,380 --> 00:50:40,770
or root cause of the problem you're having in your foot. So
794
00:50:40,980 --> 00:50:45,570
when I teach, I teach an all encompassing approach, because
795
00:50:45,570 --> 00:50:49,650
I don't want any weaknesses at all. So I don't want anyone
796
00:50:49,650 --> 00:50:53,760
to think that coming here with all the information is
797
00:50:53,760 --> 00:50:55,890
available to you, that you're gonna drown in the information
798
00:50:55,890 --> 00:51:00,900
and come out with nothing. Because you we could sit down
799
00:51:00,900 --> 00:51:06,660
here every single week and put one principle in the back of
800
00:51:06,660 --> 00:51:09,510
a business card and say here is a trading model. And this is
801
00:51:09,510 --> 00:51:12,330
all you need to do. Don't do anything outside of this, you
802
00:51:12,330 --> 00:51:14,850
won't get a trade every day. And that's also a problem,
803
00:51:15,090 --> 00:51:17,220
you're gonna have people that want to have a trade every
804
00:51:17,220 --> 00:51:21,150
single day. And if that's the case, then you're a scalper at
805
00:51:21,150 --> 00:51:24,990
heart. You want to be a scalper, okay, then focus on trading
806
00:51:25,020 --> 00:51:29,580
time of day. With the logic I showed you here, principles
807
00:51:29,580 --> 00:51:32,700
like this, where you need to know how the market is going to
808
00:51:32,700 --> 00:51:36,720
draw on the buy side or sell side. And that gives you your
809
00:51:36,720 --> 00:51:40,200
internal intraday bias,
810
00:51:40,410 --> 00:51:43,170
should you be buying or selling, you don't care how the
811
00:51:43,170 --> 00:51:45,480
week's gonna close, you don't care what the trend is going
812
00:51:45,480 --> 00:51:47,760
to be over the next four days or the next three days, what's
813
00:51:47,760 --> 00:51:50,730
the daily range is going to expand in direction higher or
814
00:51:50,730 --> 00:51:54,120
lower? That's all scalper cares about. And you can make
815
00:51:54,120 --> 00:51:57,330
money doing that. You don't you can make money doing that
816
00:51:57,330 --> 00:52:00,450
that would be opposed to the long term downtrend or uptrend
817
00:52:00,450 --> 00:52:03,240
on a daily chart and weekly chart monthly chart. Because
818
00:52:03,240 --> 00:52:07,530
it's scalping. So when you have these questions or concerns
819
00:52:07,530 --> 00:52:10,230
or if you read other people's opinions, or watch their
820
00:52:10,230 --> 00:52:13,740
review via videos and such, they are entitled to their
821
00:52:13,740 --> 00:52:17,910
opinion, they all have their own view on me and other people
822
00:52:17,910 --> 00:52:20,940
and that's fine. They're Welcome to it but it doesn't change
823
00:52:20,940 --> 00:52:23,730
or reduce the effectiveness of the things that I teach or
824
00:52:23,730 --> 00:52:27,780
that you learn here. Okay, so you have to be balanced about
825
00:52:27,780 --> 00:52:30,990
it, and go into it with a proper mindset. And I've given you
826
00:52:30,990 --> 00:52:33,570
a structure here to go in and start studying and you'll see
827
00:52:33,570 --> 00:52:36,420
that these things repeat and as far as intraday, scalping.
828
00:52:37,530 --> 00:52:40,590
intraday, short term trading. This is one of those little
829
00:52:40,590 --> 00:52:43,710
dandies that repeat a lot but you have to have the context
830
00:52:44,250 --> 00:52:46,800
of where the market runs out liquidity on a higher timeframe
831
00:52:46,800 --> 00:52:49,410
chart. So thanks so much good luck and good trading.