ICT YT - 2020-12-06 - ICT Forex Price Action Lesson - Trending Days.srt

Last modified by Drunk Monkey on 2021-06-11 14:57
1 00:00:30,390 --> 00:00:40,710 ICT: Hi folks, welcome back to ICT with a very brief discussion on how to find intraday trending days. Now what is an intraday trending day when you're looking
2 00:00:40,710 --> 00:00:53,130 for an obvious buy condition for day trades or scalps or sell short days, where it's just most likely to work in conjunction with the higher timeframe bias. Now
3 00:00:53,130 --> 00:01:03,630 you can see since the month of March of 2020, the dollar has had a real difficult time trying to go higher said the obvious momentum is been on the
4 00:01:03,630 --> 00:01:12,720 downside. Now, I'm going to ask you to grant me a little Liberty here cuz I know a lot of people like to give me flak about home point in hindsight, when I've
5 00:01:12,750 --> 00:01:21,900 given examples on here, we can see me trading before the stuff actually unfolds. So just give me a little bit of flexibility here. And I'm going to teach you
6 00:01:21,900 --> 00:01:31,170 something that we can go into the charts and start looking for it. Okay. So when you have a market that is predisposed to go down, in this example, here, we're
7 00:01:31,170 --> 00:01:40,800 working with the dollar, everything that I described here would be the opposite for like euro, or cable, which is British Pound versus US dollar. And we're
8 00:01:40,800 --> 00:01:48,570 going to look at a few things. And I'm not going to do a whole lot of it in the chart. It's basically you listening and taking notes. Now I want to point at
9 00:01:48,570 --> 00:01:58,710 some things in the chart. But most of this is going to be just me giving you the lecture points, okay, or the salient points that you should come away from this
10 00:01:58,800 --> 00:02:12,090 teaching. When the markets predisposed to go lower, we are going to work within the framework of Monday, Tuesday, Wednesday, are going to be your best ideal
11 00:02:12,090 --> 00:02:25,140 entry days. Now, if we were looking at Dollar Index, as we have here, and it's been bearish, each week, we go in looking for the continuation of this
12 00:02:25,170 --> 00:02:35,460 underlying premise premise being that the dollar is weak, it's going to go lower. So therefore, if the algorithm is going to reprice at a lower price for
13 00:02:35,460 --> 00:02:46,620 the dollar, you're going to be best suited looking for short sells, or going short one, Monday, Tuesday or Wednesday. Now, it does not mean and it's not
14 00:02:46,620 --> 00:02:56,580 limited to just those three days, it can still have a sell off day on Thursday and Friday, every single day of the week could be down days. The topic of this
15 00:02:56,580 --> 00:03:08,400 lecture is how to find trending days where everything is perfect. It's just an ideal scenario. If you're familiar with my lesson on Power of Three, okay, power
16 00:03:08,400 --> 00:03:18,630 three is the open high low close phenomenon when the market is bearish, where we can go short at the opening price of the daily range or above it, and then ride
17 00:03:18,630 --> 00:03:28,290 the daily range down to what would be classically referred to as the closing price. Well, since the foreign exchange and forex market doesn't technically
18 00:03:28,290 --> 00:03:37,170 really close until Friday, what am I referring to, I'll give you a little bit of talking points about that too. So you can go into your charts and dress them up.
19 00:03:37,440 --> 00:03:47,820 And you'll see right away what I'm talking about. So we're looking at a market that is predisposed to go lower, as I said, and that means on this example,
20 00:03:47,820 --> 00:03:58,620 we're gonna be looking for Monday, Tuesday, Wednesday, sell days. Now, if we look at what has just transpired last week, we had a run below this low here.
21 00:03:59,400 --> 00:04:12,330 Okay. Using this mindset, going into the week, with the expectation that Monday, Tuesday and or Wednesday, could be really classic down days. Now, what is a
22 00:04:12,330 --> 00:04:20,850 classic down day? Let's go into the hourly chart, and I'll give you some information about what classifies a classic down day, and what characteristics
23 00:04:20,850 --> 00:04:32,250 are available when we're looking for it. Okay, so we are in the hourly chart for dollar index and the daily separators. And this line here is that old low
24 00:04:32,280 --> 00:04:41,820 reference on the daily chart before I drop down into the hourly chart. So the idea is we're looking at a bearish market environment and whether you want to
25 00:04:41,820 --> 00:04:53,400 call it momentum or do you want to call it trend, whatever it is that you are classifying the dollar is for your model, is it going to be bullish or bearish?
26 00:04:53,820 --> 00:05:02,490 We're going to assume that whatever that was that you arrive that lower lows, lower highs, all that business This, you might use moving averages, if you're an
27 00:05:02,490 --> 00:05:11,610 indicator type of person, I don't really use indicators like that. But if it helps and works for you, then by all means, I guess continue to use it. But if
28 00:05:11,610 --> 00:05:22,650 you look at how Monday's trading started, okay, we opened up here, traded higher, made a high, which happens to be the high of the week. So as I indicated
29 00:05:22,710 --> 00:05:26,220 at the beginning of the video, and I teach this in other lessons,
30 00:05:27,540 --> 00:05:38,970 how to find explosive price action moves is one of my classic teachings, where I teach the weekly Power of Three, which is the funnel like where we open, create
31 00:05:38,970 --> 00:05:48,990 the high of the week, and break down on Tuesday, we trade again higher, and then work towards the low end of the range later in the day. And then Wednesday, we
32 00:05:48,990 --> 00:05:56,640 get another rally initially during the London session, and the market trades lower. And then on Thursday, we get same phenomenon we open rally up, create the
33 00:05:56,640 --> 00:06:03,780 high the day and trades low, making the low day and and consolidates into that. And then finally, Friday makes the low of the week. And it goes into
34 00:06:03,780 --> 00:06:12,780 consolidation as the trading week closes. Now that is obvious. And for most of you that are very cynical, you'll see that and say, Well, you know, that's
35 00:06:12,780 --> 00:06:22,020 that's obvious what one wants us to take away from this, that I don't already know. If you're bearish on a higher timeframe, weekly and daily, both of those
36 00:06:22,020 --> 00:06:33,120 timeframes agree, or your analysis lends well to it continually moving lower, then you're focusing on Monday, Tuesday and Wednesday to see these types of
37 00:06:33,120 --> 00:06:44,970 phenomenon where it creates a high and then the market repels away from that, does it stay at the highs long? No. It leaves it quickly here tries to run back
38 00:06:44,970 --> 00:06:57,000 up rebalances in here and then breaks down aggressively. Wednesday again, same scenario, we run up and then break down hard. Thursday, I want you to look at
39 00:06:57,000 --> 00:07:09,180 this pattern right there. Okay, see that? This is not I didn't send this chart on to my community tab. But I showed you a five minute chart of this particular
40 00:07:09,180 --> 00:07:19,530 day. So in your notes, I want you to write down that when you are bearish on higher timeframe charts weekly and daily if both of those agree. And there's
41 00:07:19,830 --> 00:07:29,730 many lessons in my youtube channel that will help you derive what that direction should be, or how to find that direction, using the way I do it. And if they
42 00:07:29,730 --> 00:07:40,710 agree and they're saying both of them are bearish. Every single trading week, you go into your analysis with the expectation of a sell scenario forming on a
43 00:07:40,710 --> 00:07:52,530 Monday, a Tuesday and on Wednesday. Now, it can continue into Thursday. But if it's bearish, there's a high probability that the weekly range will create the
44 00:07:52,560 --> 00:08:05,370 opposite end numbers if we're expecting bearishness and a big down week, Thursday tends to make the low of the week about 65 to 70% of the time during
45 00:08:05,400 --> 00:08:17,880 the New York open, okay, or the New York session. There are times when it will continue on into Friday. In this case, it went down just a little bit more meta
46 00:08:17,880 --> 00:08:27,240 target that I gave to my community and then repelled that's not the scope of this lesson. Now before you get upset and you think all you're holding things
47 00:08:27,240 --> 00:08:38,790 back, why'd you even bother coming here? I want you to think about the likelihood of this being where you targeted for the dollar and say you were able
48 00:08:38,790 --> 00:08:52,890 to capture a move from here, or here or here. Would you be upset if you got out there when it only went down this far the following day? Now I asked another
49 00:08:52,890 --> 00:09:02,940 question. With a similar vein. What happens if you took your profits with the analysis saying here is the time when you thought that the weekly range would
50 00:09:03,120 --> 00:09:14,910 end? It wouldn't go any lower. And but then it went down another 80 pips, would you be upset? If you said yes, you need to reevaluate why you would be upset
51 00:09:14,910 --> 00:09:24,690 about that. Because if you were able to get out there or in close proximity to that low from this entry point here, here or here. That's an enormous amount of
52 00:09:24,690 --> 00:09:36,660 range, like that's the lions portion of the weekly range and no one if they're able to capture that should be upset. Because if you feel that it's something to
53 00:09:36,660 --> 00:09:46,230 get upset about, if you hold only to here, and it drops in additional 80 pips, you're wrestling with something that is not realistic, because you're not going
54 00:09:46,230 --> 00:09:56,610 to get every piece of every move. That's not going to happen. I don't teach that I don't promise that a new mentor or teacher should and if they do, that's a
55 00:09:56,610 --> 00:10:04,740 clear indication you need to run away from them because they're promising you the moon And they can't deliver it. What can we do with this information though,
56 00:10:05,190 --> 00:10:12,120 let's assume for a moment that you believe what I'm suggesting you go into your charts and look for it. Now, right away, some of you are going to say, okay,
57 00:10:12,120 --> 00:10:24,210 Michael said, Every bearish week is going to have a sell on Monday, Tuesday and Wednesday. And then Thursday, could happen to have another down day. And you're
58 00:10:24,210 --> 00:10:28,020 gonna look for every instance that it does not fit that criteria.
59 00:10:29,280 --> 00:10:37,800 And the things that you're going to be not paying attention to, is there are times when this market should be expanding, creating these big weekly ranges,
60 00:10:37,890 --> 00:10:46,650 there isn't always going to be this big, big weekly range expansion on the downside, or, conversely, big range expansions. On the upside. There are things
61 00:10:46,650 --> 00:10:54,930 that you have to learn from a market structure standpoint, and I give a lot of these types of lessons in this YouTube channel for free. But when we break a
62 00:10:54,930 --> 00:11:04,710 low, like this line up here indicated on the daily chart when we broke through that, you always anticipate some measure of expansion. Now you're classically
63 00:11:04,710 --> 00:11:14,820 taught to look for a break, and retest and then go short. Well, you can see they went below here and pumped it up above it. That is a little unsettling for
64 00:11:14,820 --> 00:11:22,140 people that like to use support resistance, because why didn't it Stop right there. The market trades one more time below it and goes right back above again.
65 00:11:22,560 --> 00:11:29,970 But notice it doesn't stop right, that old low. Again, this level here, go back, rewind the video, you'll see this low. If you look at your own charts on trading
66 00:11:29,970 --> 00:11:41,010 view for dollar, you'll see that this level here 9174, and six pets is the level that's that old well on a daily chart. So it goes below and then sweeps back
67 00:11:41,010 --> 00:11:51,150 above it. It's not just going above it because it's random. It's going above it to rebalance this little area right in here. Can you see that? So after it
68 00:11:51,150 --> 00:12:01,560 rebalances there, it breaks down aggressively. But now, this red line is not the lows that we watching this low is the Monday low. So what we're doing is is
69 00:12:01,560 --> 00:12:11,910 we're watching does it have the ability to break the previous day's low? Does it break it in a subtle manner? No. It expands aggressively through it. So it's
70 00:12:12,030 --> 00:12:21,720 destroying this low here and confirming the run below here. So it's done it on Monday creating a high on Tuesday, it shows aggressive movement lower. Now on
71 00:12:21,720 --> 00:12:31,110 Wednesday when new traders or neophytes watch real time intraday price action during London, they see these big pops up. And they think okay, well we'll look
72 00:12:31,110 --> 00:12:40,650 at these lows here. And I'll put momentum indicators like CCI stochastic RSI, you know, I'm talking about overbought, oversold indicators. And they'll be
73 00:12:40,650 --> 00:12:49,530 flagging, bullish divergence. And they'll be thinking, Okay, it's kind of the low. And they may think that maybe it could trade back up to that level here,
74 00:12:49,530 --> 00:12:58,740 because that's an old, higher timeframe low. So that could be a resistance level. And when they start to chase price like that, it will be very frustrating
75 00:12:58,740 --> 00:13:09,780 for them. When it starts to break down again, when it starts to break down. What low would they be attacking? The low that was formed in early trading on the
76 00:13:09,780 --> 00:13:19,980 second does it trade through that subtly? No, it aggressively punches through it with energy, then comes back up rebalances and then sells off again, going into
77 00:13:19,980 --> 00:13:32,730 the close. Now on Thursday, the same type of phenomenon we're expecting. We're waiting for it to open, create a high the day during in one session, and then
78 00:13:32,760 --> 00:13:46,050 trading aggressively lower but then forming a low during the New York session. That low that forms on the New York session tends to be with a great deal of
79 00:13:46,440 --> 00:13:56,700 statistical evidence behind it and I'll leave that to you. There are strong statistics to support Thursday being the low of the week in the New York session
80 00:13:57,180 --> 00:14:09,870 when we're having a large expansion, weekly range, okay. If you looked at my community tab that day, okay, I said take it paid pay the trader that's the
81 00:14:09,930 --> 00:14:18,840 moniker I use all the time when I say prompting my students okay in your notes, you should be saying this is where the lion's portion of the move is then put in
82 00:14:19,050 --> 00:14:30,240 there so therefore, I would be classically moving to the sidelines and taking profit. I did that right before all of this run here. So it was done real time
83 00:14:30,480 --> 00:14:45,360 on my community tab. My target for the week was 9047 and seven pets and the low of the week come in one pet below. You can see that low here at 9047 and six
84 00:14:45,360 --> 00:14:59,970 pets so one pet that lower than I was expecting, and then I created the low of the week. Now Friday, like Mondays. If you can grow in allowing yourself to say
85 00:15:00,660 --> 00:15:10,860 I can take trades on Monday, I can take trades on Friday. I'm not completely opposed to it. But there are better trading opportunities on Tuesday, Wednesday
86 00:15:10,860 --> 00:15:23,910 and sometimes on Thursday. Thursday's tend to be really good reversal days. And Tuesday and Wednesday tends to be really good trend entry days. Now, think about
87 00:15:23,910 --> 00:15:26,640 what I just gave you. When a markets bearish,
88 00:15:27,419 --> 00:15:36,239 you want to be looking for ideal scenarios to sell short Monday, Tuesday and Wednesday. I'm willing to give out Monday's trading because what Monday's
89 00:15:36,269 --> 00:15:46,079 trading does, it gives me a little bit more insight as to what the weekly range may do. Because I have weekly profiles that I classify certain scenarios the
90 00:15:46,079 --> 00:15:58,529 algorithm will likely unfold throughout the week. And what do I mean by that? They're like little schematics that give us the rough idea on how the daily
91 00:15:58,529 --> 00:16:09,419 ranges will print. Now, that probably sounds crazy, but they're just general rules of thumb. They don't always exactly pan out. They are good rules of thumb.
92 00:16:09,449 --> 00:16:18,329 They help guide me and my students, but it takes a lot of experience to learn them. And sometimes I get it wrong. And that's nothing wrong with that. But if
93 00:16:18,329 --> 00:16:27,689 we're overwhelmingly bearish as we've have been for dollar, it is a huge advantage, especially if you're a new trader to anticipate Mondays, Tuesdays and
94 00:16:27,689 --> 00:16:38,579 Wednesdays to be amazing selling days or going short. During the London session, again, that's where I teach it even in this YouTube channel for free. That's
95 00:16:38,579 --> 00:16:48,329 when the intra week. Now what does that mean intra week, this is an intra week high. This is an intra week high. And this is an intra week high during the
96 00:16:48,359 --> 00:16:59,159 Monday and Fridays trading range, whatever that range is that forms the weekly range. Every short term high here in the London session, our respective intra
97 00:16:59,159 --> 00:17:11,159 week highs, I'm looking for the market to move away from these intra week highs or individual intraday highs and attack previous day's lows. If I see that what
98 00:17:11,159 --> 00:17:23,279 I'm getting in line with is the institutional order flow. So now I have a pre conceived idea of bearishness on the weekly and the daily for dollar. If we drop
99 00:17:23,279 --> 00:17:32,429 into these lower timeframe charts, we start looking for these things to occur to support our narrative, the narrative is that the dollar should go lower up to
100 00:17:32,849 --> 00:17:48,329 New York on Thursday. So that will be right in here. So here's nine o'clock in the morning on Thursday. And I asked you look at this range in here. So is it
101 00:17:48,329 --> 00:17:58,709 hard to see this pattern in hindsight? Well, that will depend on how much time you want to put into studying it. I'm giving you these details to go into your
102 00:17:58,709 --> 00:18:08,339 chart and start looking at it. Studying every individual weekly range, an individual daily ranges the Monday, the Tuesday and the Wednesday, and how it
103 00:18:08,339 --> 00:18:18,719 trades into Thursday on New York open. That is such a huge advantage. And if I would have known these things, when I first started in 1992, I would have done
104 00:18:18,719 --> 00:18:30,029 very, very well and not probably had as much pain in my development. Then I had to endure. But I'm going to go into this little area here. And we'll drop down
105 00:18:30,029 --> 00:18:38,279 into that five minute chart. We'll wrap this video up. Okay, so we're zoomed in on a five minute chart of the dollar index on the third of December. This is
106 00:18:38,279 --> 00:18:51,239 last week's trading. And this is what I call a classic trending day or a classic bearish ICT power three day where we open make the high today first expansion
107 00:18:51,479 --> 00:19:02,099 makes the low of the day and then consolidates into the close. When you're looking at forex, okay. And I know a lot of my audience are spread out across
108 00:19:02,099 --> 00:19:15,059 the globe, like everybody else on YouTube, everyone is not in the same geographic location. The way we compensate for that is on the time window thing.
109 00:19:15,059 --> 00:19:24,779 Now here, you want to set that to New York. Okay, so New York timeframe, you click that everything I'm showing you here, will line up perfectly, you just
110 00:19:24,779 --> 00:19:33,029 have to figure out what that means at your local time. Okay, so to save myself a lot of confusion and a lot of work, please don't email me and ask me what the
111 00:19:33,029 --> 00:19:42,119 conversion is. If you set your trading view charts to New York time, everything that I teach on this YouTube channel will make sense. But if you try to set it
112 00:19:42,119 --> 00:19:49,289 to your local time, it's going to be very confusing. You're going to see that this stuff isn't lining up like you would imagine it doing because it's not set
113 00:19:49,289 --> 00:19:59,219 to your local time. Okay, it's not set to time in France, okay. It's not following that clock. It's not following the clock in Hawaii. Okay. You set it
114 00:19:59,219 --> 00:20:08,759 to New York time. everything is relative to New York time, you can be mad about that you can be upset about it. Or you can just say, Alright, Michael saying
115 00:20:08,759 --> 00:20:17,219 that. So I'm going to just do that. And that's all I'm asking you to do. Just do it and everything else will fall in line. this vertical line here indicates
116 00:20:17,249 --> 00:20:28,349 midnight, New York time. If you add another vertical line at noon, right there, okay?
117 00:20:28,829 --> 00:20:41,909 You have the two dividing time windows that I use to teach my students. All the stuff that happens after this. Not important to me. Everything prior to this,
118 00:20:42,239 --> 00:20:54,149 not important to me. For the daily range, you're going to look at these two specific times. It's a 12 hour window opening. If we're bearish, we don't care
119 00:20:54,149 --> 00:21:07,859 about the rundown. We want to see it run up above the opening price. This is my classic power three idea. The high forms at 4:40am. On Thursday, the market
120 00:21:07,859 --> 00:21:19,049 breaks down, comes back up rebalances in here, trades into a bearish order block. Right here, right there. Why not this one here? Michael, look at that. I
121 00:21:19,049 --> 00:21:30,449 mean, wideness. I know some of you are saying Why do you pick that one. And this one tells you almost like I'm clairvoyant. This candle has a larger body, even
122 00:21:30,449 --> 00:21:40,349 though this one's higher. This is something else. But I'm using the order block here. This is your order block, not this one, because we don't teach supply and
123 00:21:40,349 --> 00:21:48,569 demand. And there's other things in this chart. And now it's not just the fair value gap either. So you guys have been introduced to that. This is your bearish
124 00:21:48,569 --> 00:22:00,719 order block, trades up into that bumps the body of that here, and then breaks down. We trade back up a little bit subtlety and then break down again. Market
125 00:22:00,719 --> 00:22:20,339 trades back up again here. What is this? See that? What is this? That's the optimal trade entry. What is this optimal trade entry? Here? And then you have
126 00:22:20,339 --> 00:22:35,309 it here. Okay. If we have an optimal trade entry, and it starts to sell off, what are we expecting it to attack that low? If it breaks this low, how far can
127 00:22:35,309 --> 00:22:52,979 it go? Well, you have two factors here, you have the element of time, and price. Not price and Time, time and price. So if we have in terms of time, alright, so
128 00:22:53,009 --> 00:23:08,069 we have it set to 10 o'clock to 11. Okay, that's your sweet spot. That is the sweet spot of London close. With I mentioned earlier in this video that we can
129 00:23:08,069 --> 00:23:20,369 generally anticipate the low forming during the New York session on Thursday. But what closes that window and has an overlap of an important turning point
130 00:23:20,399 --> 00:23:32,249 intraday, London close. So we're going to use the 10 o'clock in the morning till 11 o'clock in the morning profit taking period where intraday traders, they
131 00:23:32,249 --> 00:23:42,959 usually square their positions around that time. Now I can go as long as noon day with which is here. But this is the general area where I like to take
132 00:23:43,259 --> 00:23:53,009 profits. And if you look at some of my old videos, this is something that I taught pretty religiously. So we have the London session high optimal trade
133 00:23:53,009 --> 00:24:01,739 entry. Then we have the New York session, this candle here seven o'clock in the morning right there. Okay, so it's setting up the optimal trading sheet that
134 00:24:01,739 --> 00:24:12,239 would sell off during New York session. And we want to see it attack this low. If it does, what can we anticipate in terms of a target, if we're in a trending
135 00:24:12,239 --> 00:24:22,619 model in the market is clearly indicated wants to go lower, as shown it on the weekly has shown on the daily. And we've seen Monday and Tuesday and Wednesday
136 00:24:22,619 --> 00:24:35,009 indicate that it is absolutely working to a large expansion on the downside for the weekly range. So that means Thursday could start to see what a big range day
137 00:24:36,269 --> 00:24:46,649 everyone else is thinking it's oversold. It's oversold, it's oversold. So when we attack this low, how far can it go? Well, let's take a look at that. I like
138 00:24:46,649 --> 00:24:50,009 to use a fib for targets.
139 00:24:50,640 --> 00:25:00,000 One of the things that I mentioned a few times in my discussions on this channel, is my weakest point has always been my exits and not because I can
140 00:25:00,000 --> 00:25:08,580 Can't find profitable exit points. It's because I can't find contentment. Always looking at after the fact and saying, I wish I would have did this, I wish I
141 00:25:08,580 --> 00:25:14,280 would have done that. So no one's ever right in this industry, okay, you're never even if you're profitable, you're never right, gentlemen, if you're
142 00:25:14,280 --> 00:25:22,050 married, you know, your wife is definitely going to tell you that you aren't right. Okay? Because you lost money. But you as the man, even when you are
143 00:25:22,050 --> 00:25:28,980 profitable, you aren't going to feel right either. Because it may go a little bit further, you'll wish you had more on the trade. It's just you're never going
144 00:25:28,980 --> 00:25:43,380 to be content. So I, in my honesty, the flesh of me, okay, I wrestle with this idea of perfection or my exits, where my entries can be scary accurate, my
145 00:25:43,380 --> 00:25:55,080 exits, I have to do it as a grouping. And so I've adopted this idea of taking logical partials or taking a specific price level and just completely getting
146 00:25:55,080 --> 00:26:03,930 out of it. If I'm really conflicted about how far I think it's going to go, I just pick a really good middle ground exit point. And I just take all that off
147 00:26:03,930 --> 00:26:12,870 there. And I just tell myself, it is what it is, if I miss out on another 100 pips, who cares? You know, usually I'm taking down 50 to 75 pips. And who cares
148 00:26:12,870 --> 00:26:22,770 what, you know, somebody else can say they made, I don't care. If he wrestled with that all the time, you're just going to be miserable, and you won't enjoy
149 00:26:22,770 --> 00:26:30,180 this industry, you won't enjoy the career that you're trying to frame for yourself, or hobby, you know, depends on how you want to look at it. But
150 00:26:30,180 --> 00:26:37,740 initially, you had to look at it like it's a college degree, that means something at the end, because you're not going to do this with a couple weeks of
151 00:26:37,740 --> 00:26:44,880 study, or a couple months and know how to do it, because you need to figure out a lot of things about yourself. But this framework I'm going to give you here
152 00:26:44,910 --> 00:26:55,020 will give you one of the ways I like to look for specific price levels, but coupling it with time. So again, what's the first time so we're aiming for this
153 00:26:55,020 --> 00:27:01,830 particular time window, the day between 10 o'clock 11 o'clock in the morning. Now, there's gonna be times when it will make the low today, just before 10
154 00:27:01,830 --> 00:27:11,370 o'clock in the morning. And you'll be like, Oh, it was early. And sometimes it'll go into 1130, a quarter 12. And sometimes it might be 1215. These are
155 00:27:11,370 --> 00:27:19,620 general rules of thumb, there's always going to be some slight little variance in here and there. But it's going to serve you better than anything else out
156 00:27:19,620 --> 00:27:29,160 there in the retail logic. So we're aiming and holding willing to hold until we get into this time window. Okay, we enter that time window about right there in
157 00:27:29,160 --> 00:27:37,770 this candle. It starts it in that candle at 10 o'clock. So if that candle could have been the low of the day, why do you know, Michael? because now you're just
158 00:27:37,770 --> 00:27:43,440 talking about it could have been this one? It could have been this one in this one. It could have been that one? Or you know, what about that one? That could
159 00:27:43,440 --> 00:27:54,600 have been it right? Why this one, huh, now to get the element of price. Because we have the time window down here, I moved up to the hourly chart. And this is
160 00:27:54,600 --> 00:28:07,260 our Wednesday price swing high. And then it starts to break down. Wednesday's high. And the sell off prior to these lows being taken out, we can know a high
161 00:28:07,260 --> 00:28:20,640 degree of probability of a particular price level being traded to what you do that is you want to take the high to the low here. Okay, that high to that low.
162 00:28:20,760 --> 00:28:31,170 Why? Because this is an impulse like, and this is a fulcrum point when the breaks below that this range here, projected down is here. That's one standard
163 00:28:31,170 --> 00:28:44,220 deviation of this low to high. This imagine this being a hinge. And this swings down to here. But markets aren't always perfectly symmetrical like that. So this
164 00:28:44,220 --> 00:28:53,940 is the reason why I taught you how to use hips. Okay, so every standard deviation has a half. So this is one full standard deviation, and one and a
165 00:28:53,940 --> 00:29:10,140 half. What's the one and a half 90.5 to 190, point five to one, it's add that to our chart. Okay, and we're going to drop back down into that five minute chart.
166 00:29:10,230 --> 00:29:19,050 Okay, so here's the optimal trade entry on that particular day for the London then we have it here for New York. The market breaks this low, how far can I go
167 00:29:19,050 --> 00:29:30,090 down? We have this price level here. And the overlap of time. Look at the bodies in here. Yes, you have little tails that went a little bit lower. But look at
168 00:29:30,090 --> 00:29:43,320 the body's respecting this level. That's not random. The market seeks these levels and couples it with time. So this area in terms of time and this
169 00:29:43,320 --> 00:29:47,910 particular price level with the fib that's a target.
170 00:29:48,180 --> 00:30:01,500 This is the very reason why I said oh my community tab. See that low one Dixie wave. That's that's the below the day on Thursday. Here's how that overlap
171 00:30:01,530 --> 00:30:13,590 worked out with time. And price. Time is the element that you hold for you submit to that, because you don't know how long it's going to take. Outside of
172 00:30:13,590 --> 00:30:26,640 specific time windows, you have London close, you have New York, open, London open. In Asia, New York, close is a little quirky. So I don't try to teach too
173 00:30:26,640 --> 00:30:32,940 much of that even in my mentorship, because you have to have a whole lot of things understood before that is even useful to you. And usually, that's like
174 00:30:32,940 --> 00:30:42,690 the two o'clock, the four o'clock in the afternoon window, and usually two o'clock, on the biggest extreme days, usually two o'clock hour usually completes
175 00:30:42,690 --> 00:30:56,910 the daily range. For this example, what I've outlined here is how the element of price with time initially is a more important factor than just simply a price
176 00:30:56,910 --> 00:31:10,710 level. Back to the hourly chart, we can look at how this one standard deviation here, and is a 9071, six, and the price level is 9071. Seven. So just to keep
177 00:31:10,710 --> 00:31:23,130 things honest, there we go. Now we're going to drop back down into that five minute chart. Here's that first objective with one standard deviation using the
178 00:31:23,130 --> 00:31:36,060 previous day's range and projecting it down. Notice that at that price level, okay? It did not trade at that level at the same time. That 10 o'clock to 11
179 00:31:36,060 --> 00:31:38,400 o'clock in the morning, I'll show you what that looks like here.
180 00:31:51,480 --> 00:32:03,420 Okay. So, at 10 o'clock in the morning, we were already below this target here. So that's the reason why I teach time. And price, because the algorithm is
181 00:32:03,420 --> 00:32:17,700 looking at time. First and foremost, then price. So if this would have been touched or traded to at 10 o'clock in the morning, which it traded to it here,
182 00:32:18,150 --> 00:32:32,700 initially. So at 750, is that an element of time that I've outlined here for London close, but still during New York? No. It trades through it here. It's
183 00:32:32,700 --> 00:32:45,780 trading around it here. It's 935 940, New York time, and then it leaves it. So it starts to move away. So if it takes out this low here, what should you be
184 00:32:45,810 --> 00:32:55,050 aiming for this price level and holding up to 10 o'clock in the morning till 11 o'clock, to see that target be met. And the algorithm delivers that price
185 00:32:55,050 --> 00:33:11,610 perfectly. Now you get a little bit of tails in here, but look at the bodies. Look at the close on this price here. 90.519519. That's three pips away from a
186 00:33:11,610 --> 00:33:22,080 projected low the day that you could calculate back here. Think about that. That's crazy. And you couple that with entry patterns, and you start to see how
187 00:33:22,170 --> 00:33:30,750 I can do the things that I teach and illustrate on this channel. It's not always just hindsight, folks. But you have to learn things conceptually, through an
188 00:33:30,750 --> 00:33:39,540 element of hindsight. This is how you see things conceptually. And it gives you just enough evidence to go into your charts, they collect Intel for your own,
189 00:33:39,990 --> 00:33:50,100 then you can start seeing these things, patterns and, and completions of time and price. They're algorithmic, and they repeat a lot. But you have to have
190 00:33:50,100 --> 00:33:59,790 certain things in agreement to get them. Now I could have just simply said, This isn't hindsight. And there it is, but I used it in front of all of you during
191 00:33:59,820 --> 00:34:10,680 this particular day. The very next day, it trades to our objective that our community has been looking for for the dollar, which was 9047 and seven
192 00:34:10,680 --> 00:34:21,330 pipettes. And it went one pet below that. Not even a half a pip, not a quarter of a pip one PIP that one 10th of a pip. That's the the error I had there. So it
193 00:34:21,330 --> 00:34:30,180 went one more one 10th of a pip beyond what I was calling for, and then made a load a week. So if you're looking for big trending days, you want to be looking
194 00:34:30,180 --> 00:34:43,110 at higher timeframe charts, and then blending elements of Monday, Tuesday, Wednesday, and is it showing a willingness to create highs in London? or New
195 00:34:43,110 --> 00:34:53,130 York but preferably in London? And are we seeing expansion on on the daily ranges as taking out previous day's lows? And is it doing it convincingly? If
196 00:34:53,130 --> 00:35:01,470 it's doing that, then you can start doing time elements like I'm showing you here on Wednesdays and Thursday, but just know Know that Thursday could create
197 00:35:01,470 --> 00:35:11,670 the low of the week. And there it is. Now, what's the benefit of this? Because sometimes my weekly objectives may not get hit and Thursday creates the low and
198 00:35:11,670 --> 00:35:20,370 Friday could have not went a little bit lower to trade to our 9047 and seven. This could have been it and that would be fine because I outlined it in front of
199 00:35:20,370 --> 00:35:30,960 you on the community tab on my YouTube channel. But the details behind it is what I'm showing you right here just for that Thursday, not the delivery of
200 00:35:30,960 --> 00:35:38,670 Friday's low the week. That's something entirely different. And unnecessarily, I'll say here, here it is, you're holding back now it's you're not entitled to
201 00:35:38,670 --> 00:35:51,420 it here. But my students seen this. And you all seen me outline the low on Thursday, I'm giving you the dynamics behind it. And teaching what would
202 00:35:51,420 --> 00:36:02,670 otherwise be something that only a mentorship level student would look at. And seeing and teaching by me. There is this repeating signature. That happens a
203 00:36:02,670 --> 00:36:12,570 lot. Everything I'm showing you here, if you reverse it, when you're bullish, everything would be just the opposite here, you'll be looking for projected
204 00:36:12,570 --> 00:36:24,480 highs, you'll be looking for time and price to meet. And everything should be showing lows of the day forming on one than on Monday, Tuesday, Wednesday, and
205 00:36:24,480 --> 00:36:36,450 previous day's highs are being taken out. So it's showing you by sheer force of breaking through previous day's highs. And the time element is in agreement.
206 00:36:36,840 --> 00:36:43,920 London is creating these lows of the day when it's bullish, just like it was creating the highs of the days that were showing for the last week.
207 00:36:45,210 --> 00:36:57,960 So when you blend those things together, I don't trade dollar. But this gives us insight on how to trade euro, and cable. So if we compare, I'll just add your
208 00:36:57,960 --> 00:36:59,850 real quick just for the sake of completeness.
209 00:37:05,430 --> 00:37:15,780 So here is euro just doing a mirror opposite. It creates the high of the day here when the dollar makes its projected low of the day. So if you're trading
210 00:37:16,260 --> 00:37:27,540 and using the things I teach this, in your demo account for dollar analysis, this would be your buys in euro dollar, and everything's a complete mirror
211 00:37:27,540 --> 00:37:37,260 image. So we start our analysis with $1 because it's like a barometer. It tells us should we be bearish? Should we be bullish? If the dollar index is
212 00:37:37,260 --> 00:37:48,270 consolidating, then that means you have to look at crosses. That means currency pairs like euro pound. And then if that's bullish, that'll give you greater
213 00:37:48,270 --> 00:37:59,880 insights about which pair you should be trading euro dollar or pound dollar, while the dollar index itself will stay in consolidation crosses will be allowed
214 00:37:59,880 --> 00:38:10,650 to move in that's usually when a trend. But when the dollar index is trending, or it's in swing, Euro pound tensity and consolidation. So hopefully you found
215 00:38:10,650 --> 00:38:20,730 something in this video that was insightful I know it's a little bit of a thinking cap required to go into your own tracks and study it. But this is what
216 00:38:20,730 --> 00:38:29,070 it's like to be under my wing. You get certain things given to you. And then you're encouraged to go out into your charts and study it. You're going to be
217 00:38:29,070 --> 00:38:37,980 met with weeks where Monday and Tuesday and Wednesday when you think it's bearish isn't going to give you cell days. And I want you to study when that
218 00:38:37,980 --> 00:38:49,140 occurs. And study in reference to the weekly chart and the daily chart did we just trade down to an old low and run through that old low and now it's starting
219 00:38:49,140 --> 00:38:58,680 to retrace because if it's doing that and you anticipate it being a bearish week, that's likely not to form a monday tuesday or wednesday sell off because
220 00:38:58,680 --> 00:39:10,440 it's probably retracing deeper to create a more deeper retracement so that way it can go overbought if you will, on a near term. And then the following week,
221 00:39:10,800 --> 00:39:19,050 you can anticipate a Monday, Tuesday and Wednesday scenario where it creates selling days that are just perfect. So it's not a matter of everything is going
222 00:39:19,050 --> 00:39:27,720 to be exactly like this every single time you have to blend in some things. I just gave you a huge hint. Just 30 seconds ago, if that just went over your head
223 00:39:27,720 --> 00:39:35,820 and you didn't write that down in your journal to start looking for that. You've missed it because that is gold. So until I'll talk to you next time, please be
224 00:39:35,820 --> 00:39:37,530 safe and good luck and good trading.