ICT YT - 2022-01-22 - ICT Mentorship 2022 Episode 2.srt
Last modified by Drunk Monkey on 2022-01-22 08:38
| 1 | 00:00:13,139 --> 00:00:24,449 | ICT: Our books. Well, we're here to technically this is the first teaching, give you guys an introduction video. Obviously, if you haven't watched that one yet, |
| 2 | 00:00:24,449 --> 00:00:34,619 | go to the playlist on my YouTube channel. And please watch that one because it'll help at least establish the, in my opinion, the proper expectations, that |
| 3 | 00:00:34,619 --> 00:00:43,649 | way you understand what you're getting involved with here. And at least it gives me a chance to kind of like break the ice and show you the contrast of what you |
| 4 | 00:00:43,649 --> 00:00:58,979 | may be expecting versus what I intend to deliver. Alright, so this first installment is going to be elements to a trade setup. Alright, so coming out of |
| 5 | 00:00:58,979 --> 00:01:10,559 | the gate, this will let you know that this is predominantly going to be a futures index, trading mentorship, okay. The idea is going to be presented in |
| 6 | 00:01:10,559 --> 00:01:24,509 | the scope of paper trading on trading view.com. But what you're looking at here, this is thinker swims live data, these are actual executions I made today. And I |
| 7 | 00:01:24,509 --> 00:01:35,099 | want you to compare and contrast with what you see on YouTube and other educators where they'll tell that they can do this and they can do that. But |
| 8 | 00:01:35,339 --> 00:01:47,369 | really, I want you to compare and contrast what you see here. Alright, so we're looking at intraday price action for NASDAQ emini futures. And this is actually |
| 9 | 00:01:47,999 --> 00:02:03,179 | the main focus of this mentorship. Okay, I believe that this market is worth studying, I believe it is not just limited to NASDAQ. But I believe it's useful |
| 10 | 00:02:04,379 --> 00:02:16,829 | to learn as a trader, the views, obviously, the E Mini s&p, the E Mini Dow future, and the E Mini NASDAQ. Now, E Mini NASDAQ is a little bit faster, a |
| 11 | 00:02:16,829 --> 00:02:29,819 | little bit more aggressive. And even with that, you can still trade it. So I want you to think about what it means to watch price action and understand what |
| 12 | 00:02:29,819 --> 00:02:38,789 | it's likely to do before it does it now, I'm not promising you're gonna be able to do that right out the gate. But I'm going to show you is the Compare and |
| 13 | 00:02:38,789 --> 00:02:49,709 | contrast to how I can trade versus what I'm promising to teach you in this mentorship. How to find specific setups in your demo account, okay, or your |
| 14 | 00:02:49,709 --> 00:02:59,609 | paper trading account. I'm not trying to entice you to trade with live funds, okay, so that we know this going in the teachings will be predominantly through |
| 15 | 00:02:59,609 --> 00:03:12,239 | the scope of tradingview.com paper trading module or just hindsight data. Now already know some of your here we go the hindsight guy. Well, what you're |
| 16 | 00:03:12,239 --> 00:03:23,579 | looking at here is actually live executions from today. Okay. And I want you to think about if you were able to trade a micro account, and you were trading the |
| 17 | 00:03:23,579 --> 00:03:35,519 | NASDAQ, and you're able to capture just one of these moves, which one would you like to learn how to find, obviously, probably look at this, and they go, I'd |
| 18 | 00:03:35,519 --> 00:03:46,109 | like to do all of them. But I want you to think about which one really stands out off the entire chart, this is a one minute chart, which one really stands |
| 19 | 00:03:46,109 --> 00:03:59,309 | out, I'll give you a moment, you can pause the video and unpause it when you're ready. Something you folks never ever pause it. Alright, so obviously, we can |
| 20 | 00:03:59,309 --> 00:04:12,329 | see how the market moves from here. Okay, to orders executed here, whenever you see this, this is actually a reversal. So if there is a trade on long, it'll |
| 21 | 00:04:12,359 --> 00:04:18,929 | reverse and take you the other direction. Okay, and then this one here, this is a reversal as well. |
| 22 | 00:04:20,250 --> 00:04:32,880 | Then another close, and then another long entry, the exit, a short entry and then the cover. Okay. I'd like for you to consider what it would take for you to |
| 23 | 00:04:32,880 --> 00:04:45,990 | find consistency, and how many handles how many full handle moves in an index futures contract that would satisfy you. When I say a handle that's essentially |
| 24 | 00:04:46,020 --> 00:04:58,620 | four ticks the minimum fluctuation in these markets. An example would be if you were trading the Emini, s&p and you are trading obviously the 4450 level and you |
| 25 | 00:04:58,620 --> 00:05:10,320 | went long if it went to four or four or five, one, that's a full handle, okay, or four ticks, or four times $12.50, or $50 per handle. The NASDAQ is $20 per |
| 26 | 00:05:10,320 --> 00:05:22,620 | handle. So it's slightly different. But it's faster, it moves a lot more, more handles a lot more aggression. Now, it doesn't always move fast, or sometimes |
| 27 | 00:05:23,070 --> 00:05:35,640 | we'll have a lethargic price action in this indicee, or another one of the three, that would be the s&p, the NASDAQ in the Dow. I personally don't trade |
| 28 | 00:05:35,640 --> 00:05:46,020 | the Dow that much, but there's a lot of my students that love trading the y m, but y m is the symbol for the futures contract. And these three markets have the |
| 29 | 00:05:46,020 --> 00:05:55,560 | luxury for you that may not have the capability to put up at like $17,000 margin, if you were going to trade one full contract at the Nasdaq futures. Most |
| 30 | 00:05:55,560 --> 00:06:03,600 | brokers unless you're using a discount broker, they're gonna require you to have deep pockets in sense that you're gonna have to about $17,000, and about 12,000 |
| 31 | 00:06:03,690 --> 00:06:17,580 | in a half for E Mini s&p futures contract, okay, you take basically a fraction of that. And you can trade a micro on each one of these markets, but obviously, |
| 32 | 00:06:17,580 --> 00:06:28,470 | it reduces the number of the tick multiplier, because you're trading with a lot less technically leverage. So I'm going to get into all that. But I'm just |
| 33 | 00:06:28,470 --> 00:06:43,200 | gonna, like want to begin the conversation informally, but also that's kind of like show you what it is that I do, versus what other people do. Okay, so I'm |
| 34 | 00:06:43,200 --> 00:06:53,310 | not trying to, you know, point my finger at anyone in particular. But if you look around on YouTube, there are people out there that try to make a big stink |
| 35 | 00:06:53,310 --> 00:07:03,300 | about themselves. And they'll try to show results that may or may not be real, I'm not here to disparage that they could be actually trading a Live account, I |
| 36 | 00:07:03,300 --> 00:07:14,430 | don't personally care. But anyone that trades on Thinkorswim, they can recognize this chart right away, I posted a results and updated reflection on the |
| 37 | 00:07:14,430 --> 00:07:23,790 | ThinkOrSwim or TD Ameritrade account. And it's on my community tab. I promise I won't beat you up too much with the Community tab. But that's my way of reaching |
| 38 | 00:07:23,790 --> 00:07:33,330 | out to you. So if you subscribe to the channel. And then when you subscribe to the channel, you want to toggle all notifications, you want to click that little |
| 39 | 00:07:34,080 --> 00:07:42,540 | thing, it's like a bell icon. And in all notifications, that way, anytime I post on my community tab, it'll let you know, otherwise, it won't let you know. So |
| 40 | 00:07:42,540 --> 00:07:57,990 | it's it's my replacement to Twitter, which in my opinion, sucks. So if we look at the ebb and flow of all this here, where the markets trading up, and between |
| 41 | 00:07:58,020 --> 00:08:10,920 | here, and here, it's not a small number of handles, it's a pretty respectful amount of handles, it's not a couple of some handful, and then up here, it's a |
| 42 | 00:08:10,920 --> 00:08:26,490 | reversal in comes back down, and then I buy it back here in reverse. So I'm selling short here. And I'm buying long here. 747 20, that's 20 handles, going |
| 43 | 00:08:26,490 --> 00:08:43,770 | long here at 720. I'm abbreviating the number just for brevity sake, getting out at 730 to 12 handles, then going along here, fit 756 And then getting out at 74 |
| 44 | 00:08:43,770 --> 00:08:56,880 | and a half, then going short, at 798 and covering at 675. So I'll ask you which one of these trades do you think is the one that you want to learn? Again, |
| 45 | 00:08:56,880 --> 00:09:08,220 | putting aside the idea that you probably want to do all these, but I'm not promising you that? Okay, I'm going to take you into how to find this setup |
| 46 | 00:09:08,220 --> 00:09:08,580 | here. |
| 47 | 00:09:10,830 --> 00:09:18,840 | Notice the number of handles, I'm not promising you and get this many handles, but the setups and the logic behind it will help you find these types of |
| 48 | 00:09:18,840 --> 00:09:27,690 | frameworks. framework is that foundation to a trading model. So you have to have an understanding what it is you're looking for. And that's really the only thing |
| 49 | 00:09:27,690 --> 00:09:39,030 | I'm introducing tonight is the idea of what it is promising to educate you with so that we can go in and find the setups on your own. You will not need to be a |
| 50 | 00:09:39,030 --> 00:09:49,530 | slave to some kind of blackbox system. You don't need to be a part of some kind of signal generating gimmick. You don't need to be a part of a signal service. |
| 51 | 00:09:49,530 --> 00:09:58,140 | You can find these on your own independent that's exactly what I'm trying to frame in all my students. I do that with my mentorship students that paid me for |
| 52 | 00:09:58,140 --> 00:10:06,930 | education. Now here you You are in my YouTube channel, I'm telling you the same thing. I'm teaching independence. That way, you're not requiring any hand |
| 53 | 00:10:06,930 --> 00:10:15,510 | holding by me. Once you understand the rules, and you go through the processes and things I'm going to teach how to practice with, you will not need anything |
| 54 | 00:10:15,540 --> 00:10:24,990 | except for the chart itself. That's it. And that's how, in my opinion, and you can argue with this, if you want, I could care less if any of you would |
| 55 | 00:10:24,990 --> 00:10:32,520 | challenge the idea that independent thinking is not the best way of doing it. You want to be able to be unshackled. Okay? And if you're part of a signal |
| 56 | 00:10:32,520 --> 00:10:44,610 | service, or if you're part of a approach that requires you to use a blackbox system, you're kind of held captive, aren't you? So if you look at this, this |
| 57 | 00:10:44,610 --> 00:10:59,910 | chart is clean, except for the little bubbles actually show you the transactions, you don't really get any kind of well. Distortion from your |
| 58 | 00:11:00,660 --> 00:11:09,180 | reading of price action. I don't have a lot of graffiti on the chart. Okay. But the main takeaway here is I want you to understand that I don't hunt for three |
| 59 | 00:11:09,180 --> 00:11:19,980 | to five handles and consider that legendary. Okay, now, can you be profitable? If you take high frequency trades, and you do these types of trades? Absolutely. |
| 60 | 00:11:19,980 --> 00:11:32,040 | That's what algos do. algorithms do that. But I'm trying to show you by contrast that there is a way that you can find setups that are outside that parameter |
| 61 | 00:11:32,040 --> 00:11:40,530 | have very small little handles, and dealing lots of contracts. So if you're looking at this here, and it was say you're trading, and you're trading and |
| 62 | 00:11:40,530 --> 00:11:52,320 | NASDAQ micro account, you're not making a lot of money on these swings. Okay. I'm not making a lot of money on the swings, but I'm able to find the swings. |
| 63 | 00:11:52,620 --> 00:12:03,090 | And it's not the small little increments, okay. I'm going to teach you skill sets that focus primarily on this, okay? You want to find a nice price leg, |
| 64 | 00:12:03,120 --> 00:12:14,400 | intraday. I'm not promising you how to buy, sell short, buy, sell short, buy, sell short, that's, that's mine. Okay, I'm not teaching that. And then |
| 65 | 00:12:14,400 --> 00:12:22,350 | somebody's like, Oh, you're, you're this, you're that whatever. I didn't promise that. That's why I set the stage in the first introduction video so that we know |
| 66 | 00:12:22,440 --> 00:12:30,540 | what it is I'm teaching you. If any one of you here don't want to learn how to take this type of trade, you're welcome to not continue and turn this video off |
| 67 | 00:12:30,540 --> 00:12:44,340 | and go watch whoever, okay. But I think if you give it a chance, you'll find some amazing things that bring clarity to reading price action. Alright, so |
| 68 | 00:12:44,340 --> 00:12:52,680 | we're looking at the Nasdaq futures March delivery contract. And this is a trading view chart. And if you've never used trading view.com, the way you would |
| 69 | 00:12:52,680 --> 00:13:07,620 | pull this symbol up is n Q. H 2022. Okay. And this is a weekly chart. And I want you to think about each week before the new trading week begins, preferably on |
| 70 | 00:13:07,620 --> 00:13:17,130 | the weekend, okay. The idea is you want to try to get a read on what you think that next weekly candle is going to do? Is it going to go higher, or is going to |
| 71 | 00:13:17,130 --> 00:13:28,020 | go lower? You're not trying to predict the close of the weekly candle. That's important. Okay. You just want to see before this weekly candle opened up, all |
| 72 | 00:13:28,020 --> 00:13:38,610 | we had was this indecisive candle. Okay? Do you think that this candle that would have formed an open here is more likely to go higher or lower? |
| 73 | 00:13:40,710 --> 00:13:46,920 | Obviously, with the benefit of hindsight here, but I can tell you, all of my students know we've been looking for lower prices. And I'll just give you a |
| 74 | 00:13:46,950 --> 00:13:55,980 | quick short list as the reasons why. Number one, seasonality, okay, seasonal tendencies, it tends to go down around this time anyway. We also have |
| 75 | 00:13:56,130 --> 00:14:04,650 | discussions about how the Fed is going to raise interest rates, stock market does not like that. We're also in earnings season, there's a lot of volatility |
| 76 | 00:14:04,680 --> 00:14:14,310 | because of earnings. And those factors plus the underlying tone of the marketplace, which I'll show you and get into the daily chart. It just well, |
| 77 | 00:14:14,370 --> 00:14:24,960 | it's heavy. And this is where it was going to draw to. Okay. Did I expect this entire range to be delivered in one week? No, that's not important. The point |
| 78 | 00:14:25,020 --> 00:14:34,080 | is, I'm expecting that weekly candle to expand on the lower end, okay, or go down and gravitate towards this low which it hasn't broken yet. But I think |
| 79 | 00:14:34,080 --> 00:14:42,300 | that's what we're probably going to aim for on Sunday is opening going into Monday's trading. So that's where I think it's drawing to and that's the |
| 80 | 00:14:42,660 --> 00:14:55,080 | component I want you to focus on with your analysis. What is the market likely to draw to and I say draw to think of it as price being a paperclip, okay. And |
| 81 | 00:14:55,080 --> 00:15:08,940 | then you have this magnetic impulse, that specific price levels and seasonality, okay, we'll put on price, it'll cause price to gravitate towards certain levels, |
| 82 | 00:15:09,090 --> 00:15:18,240 | and the measure of speed and magnitude that it moves to get to these levels. You learn that over experience, that's not something I can transfer, it's something |
| 83 | 00:15:18,240 --> 00:15:25,740 | you have to practice and see and study and you get a rhythm for it. Okay? Every educator knows what I mean by that. And every student that's been trained |
| 84 | 00:15:25,800 --> 00:15:32,730 | successfully by any other educator will not understand exactly what I mean by that, you just get a feel for it, it's experienced, there's no way of defining |
| 85 | 00:15:32,730 --> 00:15:41,730 | outside of that. In the early stages of your development, you want to at least try to focus your attention on where that weekly candle is going to do. Now, |
| 86 | 00:15:41,760 --> 00:15:50,670 | here's the thing, it may start the first half of the week, or it may be just one day expand lower. And if you get a set up in that, that's it, you're done. |
| 87 | 00:15:51,510 --> 00:16:02,160 | That's how you start working towards consistency. No student ever should try to trade every single session every single day, because the only thing you're doing |
| 88 | 00:16:02,430 --> 00:16:10,620 | is building an expectation that you're going to be able to do this every single day properly. And then if you do get a run of profitability, soon as you get a |
| 89 | 00:16:10,620 --> 00:16:18,570 | losing trade, it's going to blow your mind in, you're gonna want to correct it quickly, and you're gonna start making irrational decisions. And then you enter |
| 90 | 00:16:18,570 --> 00:16:29,460 | that loser cycle I've talked about many times in the channel. So the only thing you're looking for is a likely movement higher or lower based on the weekly |
| 91 | 00:16:29,460 --> 00:16:39,240 | candle. Okay, that's all you're doing. That sets your initial bias for the week. On the daily chart, you're looking for swing highs and swing lows to get your |
| 92 | 00:16:39,570 --> 00:16:51,510 | liquidity and majority of your trading and the draw on liquidity, what makes the market go higher or lower? It's predominantly found on this timeframe. Okay, so |
| 93 | 00:16:51,540 --> 00:17:00,870 | majority of your analysis should really be went to this timeframe right here, you have to have an assumption, whether you're going to be expecting that weekly |
| 94 | 00:17:00,870 --> 00:17:09,060 | candle to expand higher or lower that your weekly bias, but then you have to go into the daily chart, and figure out basically where you are in the grand scheme |
| 95 | 00:17:09,060 --> 00:17:18,810 | of things on that weekly range expanding higher or lower. Because we're looking for lower prices, and we're looking for weakness, the expectation is we want to |
| 96 | 00:17:18,810 --> 00:17:28,200 | see every short term low, like this will be a short term low, this will be a short turn low. And underneath those lows is going to be self stops. Okay, |
| 97 | 00:17:28,200 --> 00:17:40,440 | that's liquidity. When I say learn to start looking for where the markets going to draw to, it's drawing to one of two things, okay? It's drawing two stops, |
| 98 | 00:17:40,470 --> 00:17:55,650 | which is liquidity, or it's running to an imbalance. Now, what's that mean? Above old highs, buy stops, below old lows, sell stops. Imbalances is something |
| 99 | 00:17:55,650 --> 00:18:03,240 | like this over here, we have one single candle pass higher in the previous candles high is here and next candles lows here. So |
| 100 | 00:18:03,240 --> 00:18:12,630 | it only went up one candle, nothing moved down the overlap with that same delivery on that price candle there. So in other words, that's an imbalance |
| 101 | 00:18:12,810 --> 00:18:23,160 | that's only going higher and nothing else is here to offset that and efficiently deliver price on the opposite end. Now, you've probably heard of the theory, |
| 102 | 00:18:23,220 --> 00:18:33,210 | auction theory, okay. And folks hear me try to communicate some of these things. And they'll run away with all he says talking the auction theory. And it's not |
| 103 | 00:18:33,540 --> 00:18:42,840 | just like when they see me do a rectangle or a box on chart and you'll see one in this video. It's not supplying demand, okay, it's just what it is, you'll see |
| 104 | 00:18:42,840 --> 00:18:51,090 | it and you'll know right away, it been with me for a couple weeks, that this is entirely unique, and there's nothing else like it. And I'm certain majority of |
| 105 | 00:18:51,090 --> 00:18:58,440 | you're going to fall in love with this model. So we're looking for lower prices, we're looking for an expansion, I'm using the benefit of hindsight, but I can |
| 106 | 00:18:58,440 --> 00:19:06,690 | promise you again, this was discussed, we were looking for lower prices in my pay group. And if I did not say that I have a lot of students that are making |
| 107 | 00:19:06,690 --> 00:19:15,900 | YouTube channels, they are welcome to come out and say I'm a liar. So we're looking at the daily chart, we're gonna drop down into the hourly chart. Okay, |
| 108 | 00:19:15,900 --> 00:19:26,850 | now what I have here is a framework for looking at the weekly range on an hourly chart. So all I did was beginning on midnight, New York time, Monday's candle, |
| 109 | 00:19:27,600 --> 00:19:37,080 | and then Friday's close, and then the beginning of Friday's trading at midnight. Okay. Now, what I'm delineating here is the fact that we had a nice sell off on |
| 110 | 00:19:37,080 --> 00:19:47,730 | Thursday in the market went into consolidation overnight. Notice what happens here on Friday. This is that old low on the daily chart. That's what we're |
| 111 | 00:19:47,730 --> 00:19:58,050 | thinking. And we're assuming that it's going to draw to because that daily chart, there's lots of liquidity and large fund traders, large institutional |
| 112 | 00:19:58,080 --> 00:20:12,840 | traders institutional mindset, investors will be looking at these old lows and old highs and liquidity providers will be looking to take business in around |
| 113 | 00:20:12,840 --> 00:20:22,260 | these same levels. So if we know that this level down here, is the old daily low again, I mean, take it back up to the chart on a daily chart that's this low |
| 114 | 00:20:22,260 --> 00:20:32,850 | right here. Okay. By dropping down into the hourly chart that levels here, all I'm doing is transposing those daily levels, right to this hourly chart. The |
| 115 | 00:20:32,850 --> 00:20:44,760 | entire week has been bearish. Okay, it's been going lower since the beginning. Then we had consolidation in here. The market creates this short term high, in |
| 116 | 00:20:44,760 --> 00:20:53,040 | this short term low. What rests above that short term high. If you've taken notes and been paying attention, it's by stops with resting below this low here, |
| 117 | 00:20:53,250 --> 00:21:07,020 | sell stops. Watch closely. The market trades down initially and takes out the sell stops. Why would it do that? First. This is inducing shorts. Okay? So it |
| 118 | 00:21:07,020 --> 00:21:21,000 | engineers liquidity, even if the idea is that they want to take the market down to this level, if it's been consolidating, I like to see them do this type of |
| 119 | 00:21:21,000 --> 00:21:30,060 | move here where it drops down first. It's kind of like a sucker play. Anybody has a sell stop below here, they want to sell on weakness, they're going to get |
| 120 | 00:21:30,060 --> 00:21:39,120 | tricked into the marketplace. So now they're triggered in short, and then they start doing a run against those traders, and against those that are already |
| 121 | 00:21:39,120 --> 00:21:48,840 | short from this high. So what are they doing? The markets being driven higher? And the algorithms are going to attack that by that liquidity pool? Why would |
| 122 | 00:21:48,840 --> 00:21:59,370 | they want to do that? Number one, it's going to punish those individual here that went short. With drive to go above this high here, it sends all those spy |
| 123 | 00:21:59,370 --> 00:22:13,110 | stops into market orders flooding the marketplace. That gives a huge influx of willing buyers at a high price, which is the perfect counterparty to smart money |
| 124 | 00:22:13,110 --> 00:22:23,520 | that wants to sell at a high price. Remember, the market wants go down here. So when it dries up to here, based buy stocks are the counterparty or the other |
| 125 | 00:22:23,520 --> 00:22:32,760 | side of a Smart Money trader that's wanting to go short, because they're gonna sell short, they gotta sell it to somebody wants to buy the high price. That's |
| 126 | 00:22:32,760 --> 00:22:43,350 | why the market does this. Okay, in your notes, you want to record anytime a significant price move lower is expected, always anticipate some measure of a |
| 127 | 00:22:43,350 --> 00:22:52,560 | stop hunt on buy stocks or short term high being taken out. Obviously, it's reversed when you're looking for higher prices, generally, you'll see a short |
| 128 | 00:22:52,560 --> 00:22:58,890 | term low taken out and sell stops taken before you see a very pronounced rally higher. |
| 129 | 00:23:00,390 --> 00:23:09,390 | Don't take my word for it, go through your charts, and you'll see it's actually occurring almost on a daily basis. So we're gonna drop down into a 15 minute |
| 130 | 00:23:09,390 --> 00:23:18,990 | timeframe. So that same old low level down here, and that high is mentioned on the hourly chart, and the low on the hourly chart is now been defined with a |
| 131 | 00:23:18,990 --> 00:23:26,880 | small little line segment. Okay, so we have a trend line here and a trend line here. That the extent of a trend line, that's it, I only use them to highlight |
| 132 | 00:23:26,880 --> 00:23:37,350 | to my students, these levels are not on my chart, I'm watching a naked chart, okay. You while you're developing, you should have these levels drawn out in |
| 133 | 00:23:37,350 --> 00:23:45,630 | your chart because it helps you build and ingrain the idea that this is where liquidity is it keeps you focused on that. Because it's easy to look at all |
| 134 | 00:23:45,630 --> 00:23:53,880 | these candles swarming if you have the luxury of watching it live, and you can lose sight of where you are. And once you lose your bearings, it's really |
| 135 | 00:23:53,880 --> 00:24:02,910 | confusing. And this helps you keep those bearings in mind. And what I mean by that, well, I mentioned how the market dropped down initially. And that takes |
| 136 | 00:24:02,910 --> 00:24:12,810 | the sell stops out. So sell side liquidity has been attacked. Traders are now tripped in going short if they sold on a break, trying to be a breakout artists. |
| 137 | 00:24:13,140 --> 00:24:21,630 | And then the algorithms go right back up to an area where it's been cleanly delivered. Relative equal highs. See how this high here right before a drop is |
| 138 | 00:24:21,630 --> 00:24:34,290 | basically the same high here. Notice that so retail traders see this and they trust that as what? Resistance. So the books always say, put your buy stop if |
| 139 | 00:24:34,320 --> 00:24:43,650 | you're going to go short right above and clear level of resistance. Well, these levels work for a short period of time. But majority of the time you see this |
| 140 | 00:24:43,650 --> 00:24:50,370 | event right here and this is how I teach my students to go in and look for those types of events because what did I just tell you moments ago about looking for |
| 141 | 00:24:50,460 --> 00:24:59,520 | significant price moves before there's a significant price move of any real magnitude or importance? Generally there's going to be a stop hunt that takes |
| 142 | 00:24:59,520 --> 00:25:08,790 | place Right before that price delivery occurs. So what does it look like? You have relatively equal highs this high and is high. The market goes up when we're |
| 143 | 00:25:08,790 --> 00:25:16,470 | what we're expecting lower prices on that weekly chart. We're on the last day of the week, it's already been heavy, it's weak, and the only thing it's been doing |
| 144 | 00:25:16,470 --> 00:25:26,490 | is consolidate. And the first thing it did was broke out to the downside, tripping what traders in a breakout to go short. So now they have traders caught |
| 145 | 00:25:26,490 --> 00:25:33,660 | on the wrong side offside. And now they want to take the market up here, where those buys thoughts are going to be resting for those that were smart enough to |
| 146 | 00:25:33,660 --> 00:25:44,220 | sell short here or here and didn't get down below here. So the larger pool of liquidity is going to be resting here, because it's in sync with the downtrend. |
| 147 | 00:25:44,220 --> 00:25:53,310 | And everybody that was short the day before. They seen this high form. And once it broke below this low here, they all rushed in trailed their stop loss right |
| 148 | 00:25:53,310 --> 00:26:01,560 | above that. And I understand if you're new. And you think well, this is easy to explain in hindsight, but I wanted to remind you go back and look at the first |
| 149 | 00:26:01,560 --> 00:26:10,170 | slide I showed you. Those were actual entries. That's a Live account through Thinkorswim. Charles Schwab, that was the clearing firm that did the brokers |
| 150 | 00:26:10,410 --> 00:26:19,110 | side of the business, okay. So I'm not showing you a demo account, I'm not showing you paper trading that those were real entries. Okay. They were real |
| 151 | 00:26:19,110 --> 00:26:26,280 | reversals, the whole business. But the main thing was I showed you that larger trade, this is going to be the framework that I'm teaching you how to find it, |
| 152 | 00:26:26,280 --> 00:26:35,160 | okay. But this pool of liquidity, Once this occurs, you want to drop down to your lower timeframes and start looking for something specific. And let's go |
| 153 | 00:26:35,160 --> 00:26:44,730 | into these lower timeframes and find out what that is. Okay, here's a two minute chart, why a two minute chart? Well, two minute, one minute or three minute or |
| 154 | 00:26:44,730 --> 00:26:54,750 | five, five minutes, still has a lot of room for imbalances still occur underneath that timeframe. And what I mean by that the one minute, two minute |
| 155 | 00:26:54,780 --> 00:27:04,980 | three minute chart tends to be the best for finding the imbalances for indices. Okay, don't take my word for that. Okay, if you're looking for high frequency |
| 156 | 00:27:04,980 --> 00:27:14,580 | setups, intraday, the one two or three minute chart are just beautiful. They just offer real good clarity. The reason why because the high frequency trading |
| 157 | 00:27:14,580 --> 00:27:24,870 | algorithms are operating on nothing really higher than three minutes, but majority of the time they're like seconds. Okay. 15, second, 32nd 45 seconds, |
| 158 | 00:27:24,870 --> 00:27:33,600 | 62nd intervals, okay. And what they're looking for are these small little imbalances. And what does that look like? Well, we have that run on the bus |
| 159 | 00:27:33,600 --> 00:27:44,430 | stops here, okay? Remember that old high here, the old high here, old high here, it runs right on through that, once this occurs on that higher timeframe, 15 |
| 160 | 00:27:44,430 --> 00:27:51,900 | minute timeframe, you want to drop down to the lower timeframes, and I'm using the two minute chart because this is exactly what I was using to find that |
| 161 | 00:27:51,900 --> 00:27:54,390 | imbalance and trade off of it. Okay. |
| 162 | 00:27:56,280 --> 00:28:05,400 | The market creates a short term low here, and then it breaks below that this is key, this is called a break in market structure. Now the foundations and |
| 163 | 00:28:05,400 --> 00:28:15,090 | underlying framework is we're in a market, that's what weekly bearish, you're expecting that weekly candle to expand lower, it's been expanding all week. So |
| 164 | 00:28:15,540 --> 00:28:24,810 | we have momentum on our side, we have a consolidation that's occurred. And we had a pool of liquidity engineered with these relative equal highs. And the |
| 165 | 00:28:24,810 --> 00:28:34,110 | market broke out to the downside first, and then the RAM on the highest. So once it went here, we don't rush in there just go short, because it went above old |
| 166 | 00:28:34,110 --> 00:28:41,970 | highs. We're looking for some specific signature that tips its hand to you. Okay. And I promise you, when you start going through your charts, and it's |
| 167 | 00:28:41,970 --> 00:28:48,180 | going to be homework for you, you're going to see this occurring almost every single day. And if it is not doing it this way, it's doing it the opposite |
| 168 | 00:28:48,180 --> 00:28:58,080 | direction as a bi. Okay, again, don't take my word for it, you're going to be flabbergasted, like flabbergasted when you see how many times this thing forms |
| 169 | 00:28:58,230 --> 00:29:08,550 | every single week, okay, it's many times throughout the intraday charts, it creates this type of move, but it runs the stops, then we have a short term low, |
| 170 | 00:29:08,640 --> 00:29:17,460 | and then it breaks below it. So now we have a break in market structure. Okay, once this low is broken, you're going to look for this little area here. That's |
| 171 | 00:29:17,460 --> 00:29:25,740 | that imbalance I mentioned in the beginning, right? So what's happening is the markets going to go right up inside that area there. And that's where you want |
| 172 | 00:29:25,740 --> 00:29:32,820 | to sell. Now, if you don't sell there, you can drop down to a lower timeframe, one minute chart, if this was a three minute chart, you can go to No Limit chart |
| 173 | 00:29:33,060 --> 00:29:40,110 | and look for that to occur on that timeframe as well. And it many times will form if you're looking at a lower timeframe. Let's say this was a five minute |
| 174 | 00:29:40,110 --> 00:29:47,760 | chart, and you looked at a one minute chart you find one down in here. It's a matter of scaling down in your timeframes. Because once you have an underlying |
| 175 | 00:29:48,180 --> 00:30:00,660 | premise to the market, now likely to go lower, it becomes an easy thing to look for these types of things. So in your chart, once you're developing this idea In |
| 176 | 00:30:00,660 --> 00:30:08,520 | learning it, you're going to highlight this candles low this candles high. And this right here is what I teach my students as a fair value got, okay? You don't |
| 177 | 00:30:08,520 --> 00:30:17,340 | have that as in books, okay, you don't have any of that kind of stuff out there. It's something I introduced back in 2016. And obviously, a lot of people |
| 178 | 00:30:17,340 --> 00:30:27,480 | discovered how good it is. And they try to make courses with it. But I'm going to not touch that right here. But the idea is, once it go up into that imbalance |
| 179 | 00:30:27,480 --> 00:30:38,550 | there, and once it does that, soon as it enters that area, the algorithm that delivers price. Now, some of you may not know what that means. And some of you |
| 180 | 00:30:38,550 --> 00:30:46,380 | may not even agree with it, you may think that this is made up or it's contrived, I promise you, if you spend time with this, you're going to quickly |
| 181 | 00:30:46,380 --> 00:30:53,640 | come to the conclusion that there absolutely is an algorithm. And it's manipulating the markets every single day, every single tick, it's completely |
| 182 | 00:30:53,640 --> 00:31:02,070 | controlled, okay? Period, you're led to believe its buying and selling pressure. Now, if I go back and use that analogy, where it went down here, first thing go |
| 183 | 00:31:02,070 --> 00:31:09,120 | up here, some of you may argue, see, that's the buying and selling pressure. No, it's not. It's liquidity. Now, you may argue and say, Well, we're arguing |
| 184 | 00:31:09,120 --> 00:31:19,470 | semantics, no, I'm telling you what's going on. This is the logic, this is how these markets book. Okay? Once you see these patterns, over and over and over |
| 185 | 00:31:19,470 --> 00:31:28,020 | again, it's very easy to execute on them. But the impulse to want to do it the first time you see it, because you watch this video, that is going to be |
| 186 | 00:31:28,020 --> 00:31:37,320 | problematic for you. So you're gonna do a certain number of weeks and months of back testing, there's no escaping that you have to do it. Any skill set, any |
| 187 | 00:31:37,530 --> 00:31:45,750 | teacher, educator system, whatever, okay, whatever they're going to give you, there's going to be some kind of growing period, where you have to trial and |
| 188 | 00:31:45,750 --> 00:31:54,630 | error, fix the problems that you have about yourself. And I've literally taken your attention to a very specific framework and setup, notice that some of you |
| 189 | 00:31:54,630 --> 00:32:01,440 | may think I'm still talking too much, but I'm taking you right into the heart of the matter. This is what it looks like, this is what you're looking for. Okay? |
| 190 | 00:32:01,530 --> 00:32:13,020 | These are the fingerprints of that setup, these repeat. So if you know what they are, and what those components are, that make up this setup, you'll be able to |
| 191 | 00:32:13,020 --> 00:32:24,150 | find them. But focus on the imbalance after the market structure break. So this big candle here, it breaks down, look at the next candle opens and trades higher |
| 192 | 00:32:24,150 --> 00:32:30,600 | and stops right there. So from this candles low, and this candles high, when this candle starts trading, soon as it opens, and it runs right up into that |
| 193 | 00:32:30,630 --> 00:32:33,690 | that's a short, you can go right in here sell short be done. |
| 194 | 00:32:34,620 --> 00:32:45,030 | Now, where's your stop going to be? Well, you can put it above this high here, or you can put it above this candles high, whichever your risk parameters allow |
| 195 | 00:32:45,030 --> 00:32:57,180 | for, okay? If you're trading the micro, which is again, it's not a lot of money per tick. So the multiplier for that is very small. If you trade the larger full |
| 196 | 00:32:57,240 --> 00:33:07,200 | futures contract, if it was 100 points, and they could do it real quick, it can bring in pretty bad. So you may have the leverage to trade with a discount |
| 197 | 00:33:07,200 --> 00:33:15,180 | broker. Okay, you may have the initial margin to trade with a discount broker, but you may not have the wherewithal and the skill set to navigate this market. |
| 198 | 00:33:15,870 --> 00:33:23,250 | And that's the only thing I'm trying to provide here as an alternative, because there's a lot of individuals here that will promote the idea that you can go out |
| 199 | 00:33:23,250 --> 00:33:33,660 | there with a discount broker, and just clean up yet if you know what you're doing. But you don't need a discount broker to be profitable. Okay. Looking at |
| 200 | 00:33:33,660 --> 00:33:42,720 | this further, we're gonna look at the logic in here. And I want you to think about after this forms, and you see that as your choice setup or entry, if it |
| 201 | 00:33:42,720 --> 00:33:54,960 | starts to move lower, you can still get in it, there's no reason not to think that you can't get it here. Or in here, it's close to or in close proximity to |
| 202 | 00:33:54,960 --> 00:34:04,380 | where that area is as an entry. Once we take out a low though, once that occurs, then it becomes a matter of your chasing price. And if you try to get in, |
| 203 | 00:34:04,410 --> 00:34:11,700 | especially if you use a market order, you may see it trade right to this low and say okay, now I believe it's going to go down and you put a market order to sell |
| 204 | 00:34:11,700 --> 00:34:19,680 | short and then slippage gets you down here. And it creates a larger area of risk that you have to assume it's it's problematic. You want to learn to trust going |
| 205 | 00:34:19,680 --> 00:34:28,410 | short when the markets going higher. And that feels scary at first. But once you start seeing this pattern form, it becomes easy to trust it. And in fact, as you |
| 206 | 00:34:28,410 --> 00:34:37,980 | want to be doing that you will be selling short, expecting lower prices, right when the candles going up. And retail traders can't grasp that many times. It's |
| 207 | 00:34:37,980 --> 00:34:45,720 | just like, it goes against the logic because they think I gotta have confirmation all the books say I have to have confirmation. And that's somebody |
| 208 | 00:34:45,720 --> 00:34:54,150 | that's coming in late that someone that doesn't have read price, it can't really follow it. And usually they're the people that will trade short with additional |
| 209 | 00:34:54,150 --> 00:35:03,210 | shelf sell stop. So but sell stops below the marketplace and that's the momentum entry for them. And it's kind of a no brainer. In fast markets, it works. But if |
| 210 | 00:35:03,210 --> 00:35:11,940 | you don't know you're doing, you try to do that, and the market is consolidating, or about the reverse. It hands you your backside. Okay? So if |
| 211 | 00:35:11,940 --> 00:35:20,340 | you're looking at this framework here, and we've taken the buy stocks, we have our entry pattern here. What would you be looking for, as a downside objective? |
| 212 | 00:35:20,820 --> 00:35:31,080 | Well, I'm going to teach you the liquidity matrix. Okay, and sounds pretty cool. sounds neat, and all that, but watch what it is. This here is your range. This |
| 213 | 00:35:31,080 --> 00:35:39,090 | is the low of the day. And this is the high of the day thus far. So if we take that range and split it from the low to the high to get the midpoint, all of |
| 214 | 00:35:39,090 --> 00:35:47,190 | this can be determined by a simple 50 level on a Fibonacci. So you drag your fib from this high down to that low or vice versa, and have your 50 level |
| 215 | 00:35:47,190 --> 00:35:59,220 | highlighted, then anything above that 50 level, this is referred to from an algorithmic stance as a premium market. That means is, is expensive. Now markets |
| 216 | 00:35:59,220 --> 00:36:10,320 | can stay in a premium for a while and not go to a discount, which would be below the 50. Point. Okay, 50%. Anything down here is a discount. If you're bearish, |
| 217 | 00:36:10,320 --> 00:36:19,050 | if you're going short, you want to look at the previous range. Where are you at inside that rain. So when this form here, that little fair value gap, once that |
| 218 | 00:36:19,050 --> 00:36:31,320 | formed, you're thinking, Okay, we are in a premium. So algorithms will won't want to go to a discount. That's the opposing side of the marketplace. So if |
| 219 | 00:36:31,320 --> 00:36:39,270 | it's going short, here, it's driving the market lower does that mean the algorithm is going to start pricing lower, you can have all the buyers in the |
| 220 | 00:36:39,270 --> 00:36:46,950 | world come in. If the algorithm is in a sell program, and it's going lower, it does not matter, it's going to reprice lower and lower, lower. And then what |
| 221 | 00:36:46,950 --> 00:36:54,900 | will happen is those buyers that may come in with a huge influx of volume, they're gonna get crushed, and they get squeezed, you ever get a term, oh, this |
| 222 | 00:36:54,900 --> 00:37:02,310 | is a bear squeeze, this is a bull squeeze. All that is an excuse for them not to know why the algorithms don't want to do it. That's it, that's all it is. It's |
| 223 | 00:37:02,310 --> 00:37:12,750 | an out, okay, I'm telling you, this is what's really going on. So the markets moving from this premium high, this specific entry point to a level below the 50 |
| 224 | 00:37:13,650 --> 00:37:24,060 | of this range this low, and this high. Now I want you to, again, go back and rewind the video once we're done. And look at that execution page where I showed |
| 225 | 00:37:24,060 --> 00:37:30,420 | you my entries, going back and forth, up and down, up and down. And where I got out at where I got in. Okay, |
| 226 | 00:37:31,470 --> 00:37:46,710 | I want you to think about what below this level here the 50 level what is resting below here. Self stops. So now think about the idea of someone like you |
| 227 | 00:37:46,710 --> 00:37:56,220 | and I that would see this ideal entry as a short, we had to sell to get in that short. How do we get out of that short? We got to buy it back or cover it by |
| 228 | 00:37:56,220 --> 00:38:06,030 | buying? Well, we're gonna find willing sellers at a low price relative to this point here. They're willing already sitting down here with their selves thoughts |
| 229 | 00:38:06,240 --> 00:38:19,380 | rate below that low. Now, look closely, what else resides right near that low? Do you see it? Pause the video before I show it to you because it kind of ruins |
| 230 | 00:38:19,380 --> 00:38:30,150 | the experience. Because if you find it and I don't tell it, it feels good. Right there is that imbalance I mentioned. Okay, it's only one single candle passing |
| 231 | 00:38:30,150 --> 00:38:39,540 | up. And previous candles high in the next candles. Well, that area right there is an imbalance from this area here. It went down below the 50 level and |
| 232 | 00:38:39,540 --> 00:38:49,950 | attacked the sell stops and completely closed in this and bounced. So every point of this candles high to this candles low that range with the candle only |
| 233 | 00:38:49,950 --> 00:39:03,510 | going up. That's a buy side imbalance. It has to have an equal delivery to be efficiently priced and booked by the algorithm. It goes down and completely |
| 234 | 00:39:03,510 --> 00:39:11,970 | closes back in with down movement. Notice the candle in this here it opens and then trades down. So it fulfills its role of balancing the buy side offering. |
| 235 | 00:39:12,390 --> 00:39:22,890 | Now the sell side offering. So that is an efficiently delivered price move precision elements from the entry here, down to here. Everything else after that |
| 236 | 00:39:22,890 --> 00:39:33,240 | for the rest of the day I didn't care about even though I had an objective of that old daily low. I wasn't expecting it to run into this particular day. And |
| 237 | 00:39:33,240 --> 00:39:41,160 | that's why I didn't participate anymore in rest of the day. In hindsight, I wish I would have left the small position and just let it go. But you're going to |
| 238 | 00:39:41,160 --> 00:39:46,920 | have that you're never going to be right about everything all the time every single day. You're going to leave things on the table. You're going to get into |
| 239 | 00:39:46,920 --> 00:39:52,710 | early you're going to hold too long. You're not going to buy enough you're not going to sell enough there's always gonna be some reasons why you didn't do |
| 240 | 00:39:52,710 --> 00:40:00,630 | something right. So don't beat yourself up about it. Okay, but if you can find elements like this repeating in the price action, can you agree with me that |
| 241 | 00:40:00,630 --> 00:40:11,190 | that is an amazing precision. And this is the logic I used to do that trade. The very trade that I showed you, that was the largest one in the example of saying |
| 242 | 00:40:11,190 --> 00:40:25,650 | which one would you rather learn how to do? I basically just handed you an ATM machine. Okay? This repeats every single week, every single week. Now, I want |
| 243 | 00:40:25,650 --> 00:40:38,310 | you to count the number of the handles in this move. Let's say you got in at while this, say you got an 814,800 It started to go down, you trust that. Okay, |
| 244 | 00:40:38,310 --> 00:40:46,470 | we're going to go short. Ideally you want to answer as it goes into that, but it's going to take time for you to trust that. But let's say you done in 14,800. |
| 245 | 00:40:48,090 --> 00:40:57,900 | If you got out down here like I did I exit as it went right to the top of that range. Right here. This range here. That's the top of it. Once it went below |
| 246 | 00:40:57,900 --> 00:41:13,500 | that, that was it. For me that close the trade is that five handles is that 10 handles is at 20 handles at 30 handles, is that 50 handles? No, it's over 100, |
| 247 | 00:41:13,500 --> 00:41:28,320 | and so on. Now, let's assume for a moment that you get good at this, or I get the inclination that I want to go to some kind of a deep discount broker. And I |
| 248 | 00:41:28,320 --> 00:41:37,260 | go in I do trades like this, and I'm putting on 15 to 25. For futures contracts. What do you think the results are going to be? |
| 249 | 00:41:41,190 --> 00:41:52,800 | Yep. So not everything is going to be easy right away. And you're not going to see these things happen. Just because you sit in front of charts, you have to |
| 250 | 00:41:52,800 --> 00:42:00,720 | study, and you have to practice and by experience of looking at old moves, and watching Real Price Action is best as you can, if you can't watch it live |
| 251 | 00:42:01,140 --> 00:42:13,110 | TradingView has a replay button where you can watch the candles kind of form, but they're a little stilted, because it's not completely painting the candle. |
| 252 | 00:42:13,170 --> 00:42:22,320 | Okay, and you can't practice with entering like that, you can only just study how price moved and gravitated towards certain levels, it's the best thing you |
| 253 | 00:42:22,320 --> 00:42:29,790 | can have. If you if you at least, consider doing that much, that's good. But if you really want to take it to the next level, and say you're running a business, |
| 254 | 00:42:29,790 --> 00:42:41,460 | or if you're going to score, you have a job. And you can't watch the timeframe around the opening of the index features. And I like watching it around 830 |
| 255 | 00:42:41,460 --> 00:42:48,270 | Morning, New York local time, to 11 o'clock, there's usually a setup in here that I'm gonna be able to find, obviously, you seen I did multiple setups and |
| 256 | 00:42:48,480 --> 00:42:57,540 | executions today. But the point is this, that's like that sweet little spot in the morning that I focus on. I teach that in this YouTube channel, I teach in my |
| 257 | 00:42:58,470 --> 00:43:05,880 | paid mentorship group. So you're getting real stuff here, it's not something that was contrived, I didn't just make it up. Because this day worked out my |
| 258 | 00:43:05,880 --> 00:43:17,520 | favor. My students recognize these things also. And these are simple elements that repeat, what you're looking for is a run on liquidity, buy stocks or sell |
| 259 | 00:43:17,520 --> 00:43:26,280 | stops. If you're bearish, you're looking for buy stocks to be ran, then a break in market structure lower a short term low been broken. That's what it looks |
| 260 | 00:43:26,280 --> 00:43:34,470 | like right here. Short term swing low, we have a candle high, I'm sorry, a candle higher to the left with it with its low here, then you have the low of |
| 261 | 00:43:34,470 --> 00:43:42,690 | this candle and the next candle is higher low than this one. So you have a swing low formed. If you have that. And then you have a break below that. If it |
| 262 | 00:43:42,690 --> 00:43:52,560 | happens, that creates a gap like this. That's what you're looking for. When it trades up into that you can go short. Or if you want to use sell stops, you can |
| 263 | 00:43:52,560 --> 00:44:02,040 | use a sell stop in this candle here in this, let it trip you in and then use the high of that candle as your stop. That may be too wide for you. But I mentioned |
| 264 | 00:44:02,040 --> 00:44:10,890 | logic around this is you're using a micro okay micros aren't that big of a deal. It's not a lot of money, okay? You're not risking for futures leverage. It's |
| 265 | 00:44:10,890 --> 00:44:23,340 | very, very small. So if you're looking at these types of setups, and you can find them forming repeatedly over and over and over again and you study them, |
| 266 | 00:44:23,880 --> 00:44:32,370 | you're going to see that you don't need to get these little five handle moves, these little 10 handle moves, you can make a living doing that. Don't get me |
| 267 | 00:44:32,370 --> 00:44:41,550 | wrong, I'm not trying to say that people cannot be profitable and wildly profitable. But when you learn how to do something like this, and you're able to |
| 268 | 00:44:41,700 --> 00:44:53,550 | pull down this number of handles and then you have sound money management. Nothing compares to it folks. These are the things that I use when you watched |
| 269 | 00:44:53,790 --> 00:45:02,940 | on when I was on Twitter and I ran up the demo accounts really high. These are the types of setups I was using. These types of setups. And as the account grew, |
| 270 | 00:45:03,000 --> 00:45:11,790 | there was more demo account leverage. Well, I'm not using a demo account right now, I'm showing you with Thinkorswim. And anybody that knows Thinkorswim, when |
| 271 | 00:45:11,790 --> 00:45:22,590 | I'm showing you those screenshots, the paper trading shows as arm. Everything on that page is orange. When it's a live account, it's green. Okay? Also, here's |
| 272 | 00:45:22,590 --> 00:45:35,010 | the rub with a demo account. It's this demo demo demo, okay? I'm not trying to promote the idea that you're going to get rich. Notice that account hasn't gone |
| 273 | 00:45:35,010 --> 00:45:46,200 | bonkers. It hasn't ran up to a million dollars. Because this mentorship is to hopefully inspire you to pick up a skill that if you deem it useful, and you |
| 274 | 00:45:46,200 --> 00:45:52,770 | decide at your own discretion in your own timing, and you assume that risk on your own, because I'm not going to tell you to do this, if you decide to get |
| 275 | 00:45:52,770 --> 00:46:02,160 | really good at this, and you put money behind it. That's a skill set that could I'm not promising, but it could alleviate some of the problems with what I |
| 276 | 00:46:02,160 --> 00:46:10,350 | believe is coming in terms of financial hardship, not just in America, but everywhere, jobs are getting harder and harder that half the economy is a mess. |
| 277 | 00:46:10,380 --> 00:46:18,600 | So how do we answer that? How do we get another income stream coming in? This is in my opinion, this is one of the ways that you can at least investigate the |
| 278 | 00:46:18,600 --> 00:46:21,690 | idea of doing it. Alright, so I'm going to give you some homework in closing. |
| 279 | 00:46:23,580 --> 00:46:32,490 | I want you to go through all of the E Mini futures contract charts, okay, just like I showed you here these timeframes, go back and look at the presentation |
| 280 | 00:46:32,490 --> 00:46:42,480 | and see what the timeframes I gave you listen to what I gave you in terms of audio commentary. That is enough, I in fact, I gave you a ton. And it may have |
| 281 | 00:46:42,480 --> 00:46:50,940 | your head spinning. If you're brand new to me, or you're brand new to technical analysis or trading me feel like minutes is too fast. Do not send me an email, I |
| 282 | 00:46:50,940 --> 00:47:00,750 | promise you, the lessons I have planned will help eliminate an answer majority of the things you're going to ask. Just try to study and keep up with the pace |
| 283 | 00:47:00,750 --> 00:47:10,140 | that I'm going to put you through which isn't gonna be all that bad. But as we progress deeper into the teachings, many of the questions that are going to come |
| 284 | 00:47:10,140 --> 00:47:17,280 | up, or when you start going into the homework assignment, were you looking at old data and insert a chart is anything less than a daily chart. So like a four |
| 285 | 00:47:17,280 --> 00:47:25,410 | hour chart, that's interesting. One in our chart, that's intraday, five minute, three minute, two minute, one minute, all those timeframes are intraday, what |
| 286 | 00:47:25,410 --> 00:47:35,100 | you're going to be looking for our breaks in market structure after a pool of liquidity, okay, buy stops or sell stops been taken in an opposing direction of |
| 287 | 00:47:35,100 --> 00:47:42,990 | your weekly expected range. In other words, are you expecting higher prices or lower prices on a weekly range. So if you're looking for lower prices, your |
| 288 | 00:47:42,990 --> 00:47:53,430 | focus is on a run above and Oh, hi. Once that forms, then you're looking for a break in market structure on lower timeframe. Once that occurs, and you have an |
| 289 | 00:47:53,430 --> 00:48:03,450 | imbalance, that's your trigger, okay. And then you split that range that was created, find out where the 50% is. And then if you're selling short, you want |
| 290 | 00:48:03,450 --> 00:48:12,930 | to find something like an old low or an inbounds to aim for as your target and you want to get the closest target. Don't try to get fancy and say okay, well, I |
| 291 | 00:48:12,930 --> 00:48:21,930 | think it's going to go down to that lowest low and try to use that for your exit. Because sometimes these markets can deny you that. So low hanging fruit is |
| 292 | 00:48:21,930 --> 00:48:33,630 | how I teach, you want to have the easiest target, and then allow the market to go farther and you just not be a part of it. It's okay, is 120 530 handles in an |
| 293 | 00:48:33,630 --> 00:48:44,070 | index not good enough. I think it's good enough. But I'm probably just biased. But the homework assignment is again, you going through the charts, using the |
| 294 | 00:48:44,070 --> 00:48:50,760 | logic I framed in this introduction lesson, looking for breaking market structure, also have lessons in this YouTube channel that talks about market |
| 295 | 00:48:50,760 --> 00:48:58,020 | structure breaks and things like that. And then you're going to look for the imbalance in price, which is that fair value can then you're going to determine |
| 296 | 00:48:58,740 --> 00:49:07,620 | where an opposing high or low resides. Then log in back test the number of handles you see in hindsight examples. Notice how much do they offer, and you're |
| 297 | 00:49:07,620 --> 00:49:16,050 | going to get a collection of doing that. The next lesson, I'm actually going to show you how to go back into charts in look for them, how to log them in your |
| 298 | 00:49:16,050 --> 00:49:24,930 | journal, and give you more insights about how you can find these setups that repeat every single week. Okay, so again, I'm going to build on this foundation |
| 299 | 00:49:24,960 --> 00:49:32,790 | in the next episode. The next episode will be next Tuesday in the time upload will be 10 o'clock, New York local time. Hopefully you've enjoyed this one. And |
| 300 | 00:49:32,850 --> 00:49:35,070 | I'll talk to you next time. I wish you good luck and good trading |