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ICT YT - 2022-01-26 - ICT Mentorship 2022 Episode 3.srt

Last modified by Drunk Monkey on 2022-01-28 18:44
1 00:00:17,760 --> 00:00:30,090 ICT: Hi folks, welcome back. Alright, so this is the Tuesday, January 25 2022, ITT mentorship on the YouTube channel. Alright, so this is the internal range
2 00:00:30,090 --> 00:00:40,650 liquidity and market structure shifts lecture. Alright, so I gave you homework on the Community tab if you have not been paying attention to that, that's where
3 00:00:40,650 --> 00:00:48,630 I'm kind of keeping you abreast as to what you should be expecting next, or something that just comes to mind that I feel like sharing. So this is the link
4 00:00:48,630 --> 00:00:59,610 I sent out the other day. And I wanted you to go through this particular chart and look for reasons that provided the market structure shift and the buy side
5 00:00:59,610 --> 00:01:08,640 and sell side liquidity. So if you have not done that, please stop the video and do that now. Otherwise, you're cheating yourself of learning opportunity.
6 00:01:11,940 --> 00:01:24,570 Alright, so here is that chart. Again, 15 minute time frame on the E Mini NASDAQ 100 futures contract for March delivery 2022. And take your attention over here.
7 00:01:25,020 --> 00:01:41,370 Okay, this old low in these relatively equal highs, see that although below that is sell stops. And relative equal highs above that is by stops. Now you could
8 00:01:41,370 --> 00:01:48,690 have used this high here, there's nothing inherently wrong about that. But whenever I see equal highs like this, my if it's higher than old high over here,
9 00:01:49,170 --> 00:01:58,710 I'm going to use that. So that way, it's a little bit of insight for you for your study journal. the sell side liquidity, you can see that the market trades
10 00:01:58,710 --> 00:02:10,020 down hits that runs through it. Then rallies all the way back up clearing equal highs. So the bias that had been taken here, okay, so at both of these price
11 00:02:10,020 --> 00:02:23,670 points here, and here. That's the I guess the point at which you'll look for anticipate a market structure shift, and you don't force it. Okay, I see a lot
12 00:02:23,670 --> 00:02:34,560 of people try to teach my concepts. It'll talk about market structure breaks or shifts, and we'll use that term interchangeably. But for intraday, I want you to
13 00:02:34,560 --> 00:02:48,120 think about intraday market structure shifts, because it's not necessarily a break in market structure that leads to prolonged multi day movement. Okay. What
14 00:02:48,120 --> 00:02:59,850 I mean by that, if you see a market structure that's bearish, and it's broken to the downside, intraday, that may just lead to an intraday price leg that may
15 00:02:59,850 --> 00:03:10,890 eventually see that high, be taken out in the same day. So that's why I'm using the term market structure shift, not market structure break. For our
16 00:03:10,890 --> 00:03:20,280 conversation here on this mentorship, just know that when I'm going to lean on that term, market structure break, it means a little bit more in context versus
17 00:03:20,310 --> 00:03:31,080 an intraday shift in market structure just means that there's likely a downside draw, or an upside draw intraday by saying the term shift. Okay, so there's a
18 00:03:31,080 --> 00:03:44,100 little bit of semantics there. Alright, so we have both of these areas here in here, where there would be a likelihood of a market structure shift up here,
19 00:03:44,280 --> 00:03:53,280 we'd look for a fake run above here. So that fake run above How do we know it's going to be a market structure shift that's bearish? I get that question a lot
20 00:03:53,280 --> 00:04:01,770 even from mentorship students. What you're looking for is the evidence I'm going to show you here tonight. Okay. Forget everything else everybody else has about
21 00:04:01,770 --> 00:04:09,930 market structure breaks and shifts and all that stuff. This is it. Okay, this is the brass tacks there's absolutely nothing else that you need to know about it,
22 00:04:09,960 --> 00:04:18,240 I promise you, if they add anything to it, it's just because they want to sound and look different, but this is the algorithmic perspective of a market
23 00:04:18,240 --> 00:04:34,080 structure shift intraday. Now keep this price level in mind. So it's essentially 14,000 614,008 20. We're just eyeballing okay. Now dropping all the way down
24 00:04:34,080 --> 00:04:55,440 into a two minute chart, this is that same particular day. Here's those relative equal highs and this run down here, okay. If you recall, 14, six and around that
25 00:04:55,440 --> 00:05:02,250 14 860 or so. Okay. If you look at this market structure
26 00:05:04,259 --> 00:05:14,489 without having the levels on your chart, it's easy to get lost in all the quote unquote noise, the uninitiated, and I know it's gonna Raz. The people that don't
27 00:05:14,489 --> 00:05:23,669 care. I'm really learning here. But the uninitiated folks that will watch a video or listen to some of the lectures I'll put out. They're trying to bring
28 00:05:23,669 --> 00:05:31,169 something in, they're trying to bring in their preconceived notions and ideas about what they think they understand about markets, or technical analysis or
29 00:05:31,169 --> 00:05:42,959 something in price action. And I want to kind of like, allow you to just put that aside for a moment. And just imagine, this chart is the first time you
30 00:05:42,959 --> 00:05:50,969 looked at price action for the first time. And that's hard, but kind of like strip away everything else that you want to bring to the conversation, no order
31 00:05:50,969 --> 00:06:01,679 block discussion, no breaker net stuff, okay? Supplying the main Elliott Wave audit garbage. If you look at this price action here. When we had this low form,
32 00:06:03,449 --> 00:06:15,839 right before this low was formed, there's a swing high right there. Now, in the first mentorship video I gave you, I mentioned that high frequency trading
33 00:06:15,839 --> 00:06:28,289 algorithms will use market structure on a three minute, two minute one minute chart many times sub one minute, that would be like 45, second 32nd 15 second
34 00:06:28,289 --> 00:06:40,109 intervals. Okay. What the algorithms are actually doing. And this is also going to correct a lot of people out there because they put out misinformation. It's
35 00:06:40,109 --> 00:06:49,229 so nonsensical, but I'm challenging you to go into your charts and see if this is not what's actually going on, because it happens every day. If high frequency
36 00:06:49,229 --> 00:07:00,209 algorithms are operating every single day, then these signatures will be in the chart. Okay? If you look at this short term high here, right before this low
37 00:07:00,209 --> 00:07:16,949 formed when this highest taken out right there on that candle, that's significant. Only, only if this rundown here, has traded into sell stops. Okay,
38 00:07:16,979 --> 00:07:27,629 below an old love some kind of could be a double bottom, it could be a single low. Okay. But it's got to be trading under some retail idea that would be
39 00:07:27,659 --> 00:07:43,979 viewed as support. Up here, the same thing. We're trading above highs. So we know that above old highs. A neophytes perspective will be these are unknown
40 00:07:43,979 --> 00:07:50,609 orders. So therefore, that's a flawed perspective on price action. How do you know there's liquidity out there? How do you know there's bias that's up there.
41 00:07:50,609 --> 00:08:01,769 It's this logic. It's simple look at the chart, everybody's trying to do something based on some kind of theory, logic, whatever, some system, there's
42 00:08:01,769 --> 00:08:12,809 buyers and sellers coming in at all times. Their buying and selling quote, unquote, strength, or pressure has absolutely no bearing on where these prices
43 00:08:12,809 --> 00:08:20,849 are going to go. I knew that may shake individuals that think they knew something about the markets, oh, I have an uncle that used to be on the floor of
44 00:08:20,849 --> 00:08:28,229 the Chicago Board of Trade and blah, blah, blah, the Mercantile Exchange guys say this, I don't care. Okay. I don't care what any of those folks say, because
45 00:08:28,229 --> 00:08:40,679 they didn't design the algorithm. So again, put all those talking points and everybody else's opinion you've adopted, because you've probably heard someone
46 00:08:40,679 --> 00:08:47,339 else talk about it. And you subscribe to the review, because it's easier just to do that, instead of going and looking at it for yourself. And that's what I'm
47 00:08:47,339 --> 00:08:59,819 asking you to do. I'm telling you, this is my personal belief. You're going to see proof of these things in a live account execution. But I want you to see the
48 00:08:59,819 --> 00:09:08,879 logic behind it. Because if you can see this, you'll be lightyears ahead of everyone else. And you'll laugh in the face of all these people that are going
49 00:09:08,879 --> 00:09:19,559 to tell you you're wasting your time trying to learn this, I promise you, this lesson is going to change a lot for you. When this run above these relative
50 00:09:19,559 --> 00:09:32,219 equal highs happens right there. You're anticipating a market structure shift, you're not forcing it. You're not trying to get ahead of it. Okay, I don't think
51 00:09:32,219 --> 00:09:38,339 any of you are going to have the skill set to do that. There are ways to know when to sell short rate above that not even wait for the shift in market
52 00:09:38,339 --> 00:09:50,459 structure. Just like there's ways to know to be a buyer down here without seeing that short term high broken. Then looking for a buy. Over here the opposite. See
53 00:09:50,459 --> 00:09:53,459 this swing low. Let me go back to this for a second.
54 00:09:54,870 --> 00:10:04,830 We have this high on this candle. Then we have the candle right after that here. Highest One in the lower high of this candle here. So that's a swing high, very
55 00:10:04,830 --> 00:10:16,110 simple little pattern. But it means a lot when it's in the proper context. When this highs broken with this particular candle right there, that is significant
56 00:10:16,170 --> 00:10:26,370 only on the basis that we have taken liquidity out of the marketplace. That's it. So when it broke this short term high, this is more meaningful, and then the
57 00:10:26,370 --> 00:10:39,390 market will start to seek buy stops, okay, or buy side liquidity that would rest about here, here. And here. Now, I shared an example of live executions, and I
58 00:10:39,390 --> 00:10:53,940 was teaching him the idea of utilizing micros, which are essentially $2 per candle, okay, so, or 50 cents per tick. This chart is NASDAQ, E Mini, this would
59 00:10:53,940 --> 00:11:05,790 represent $20 per handle, and there's four ticks and each handle, there's a $20 per handle. Okay, so again, what that means is 14 682 14 681, that's one handle
60 00:11:05,820 --> 00:11:19,500 or four ticks. There are some that will doubt the idea that you can trade all these little internal swings, okay, and I'm going to give you some insights on
61 00:11:19,920 --> 00:11:33,330 how I was doing it. Okay, the main context of this lesson is for you to go in to your charts, and try to prove me wrong. Okay. That's the challenge here. That's
62 00:11:33,330 --> 00:11:42,210 your homework. I want you to learn what I'm doing in this lesson here. And then you go into your charts back testing, and I'll show you what that looks like.
63 00:11:42,210 --> 00:11:49,920 What does it mean to be back testing, and what you're looking for, and how you're going to screen capture all those things. But your mission is to go into
64 00:11:49,920 --> 00:12:03,090 the charts. And look for this not being true. Okay, this is exactly what I did on baby pips. Back in 2010. I told everybody do not take my word for it. Don't
65 00:12:03,090 --> 00:12:12,630 take my word for it, go into the charts and see if this is true or not, I believe it. But I don't want to try to convince you because I won't. You'll
66 00:12:12,630 --> 00:12:21,210 convince yourself once you start seeing it, it's it. It's over. There's no argument after that, okay. But it's simple logic. Very simple. This is a very
67 00:12:21,210 --> 00:12:34,980 clean chart isn't not. All I'm gonna do is add a few annotations. And this is about as extensive of lipstick we put on our chart. I know it's shocking, right?
68 00:12:36,090 --> 00:12:43,800 Can you still see the candles? Because it might be a little obstructive. I'm being facetious. You see these guys out there with these charts that have
69 00:12:43,830 --> 00:12:51,570 graffiti all over it, you can't even see the price candle, nothing good can see any of it. But there's all kinds of overlays of all kinds of nonsense, which
70 00:12:51,570 --> 00:13:02,610 means absolutely nothing because algorithms could care less about any of that stuff. Triangles, harmonic this crabs. It's crazy. I know. But hey, everybody's
71 00:13:02,610 --> 00:13:15,240 got to have a religion. So here's those cell stops. So this little area here at shaded in, that's a area where cell stops would be residing below that 14 600
72 00:13:15,240 --> 00:13:26,370 level. Okay, when that 15 minute timeframe. So the market douve into that liquidity. And you may or may not know that is a buy. You don't need to you
73 00:13:26,370 --> 00:13:34,710 anticipate a shift in market structure. When the market rallies above, when does that happen on this candle right here. See that little light bulb? That's when
74 00:13:34,710 --> 00:13:47,400 you're thinking, okay, now I have a condition in the marketplace, that I might see an opportunity intraday. But see if there's further evidence to that short
75 00:13:47,400 --> 00:14:00,660 term highest taken here, we traded above it, it does not need to close above that. Okay, real important. Once that candle closes, in this candle opens,
76 00:14:00,750 --> 00:14:09,630 you're going to monitor this candle and you want to see as soon as this candle closes, does it create that fear value gap? If it creates a fear of a gap,
77 00:14:09,870 --> 00:14:20,010 again, that's a candle with a high one single pass up. Next candle has a load it doesn't completely overlap all this. That's fair. Very simple. Okay. This candle
78 00:14:20,010 --> 00:14:30,570 is where you would look to potentially trade at the earliest because now there's a gap there. The market trades down into that boom, takes off here is insight
79 00:14:31,080 --> 00:14:35,430 that everybody needs to understand because they're out here running around on YouTube trying to teach otter block theory.
80 00:14:36,810 --> 00:14:48,630 Order blocks. Okay, I invented it. It's mine. No one talked about before me, and I first mentioned it in 2010 on baby pips prior to that 1996 I was only teaching
81 00:14:48,630 --> 00:14:58,980 it to people one on one in teachings. That's it. Okay. You can't find it in books prior to that. It's mine. No one else taught it before me. It is mine. So
82 00:14:58,980 --> 00:15:09,240 I'm going to correct all of you Today's that way you can teach your people correctly and not hurt them. See these down close candles, see that? That's all
83 00:15:09,240 --> 00:15:22,320 one continuous order block. What's it doing? It's inside that pool of liquidity cell stops. Where's the open on that series of down close candles right here.
84 00:15:23,400 --> 00:15:34,230 That's the price level extending out in time. Boom. So inside this variable, you got this opening price and the waterblock, that's your buy. Plus three pips or
85 00:15:34,230 --> 00:15:47,610 whatever spread. And that's what you would use for a limit order. That's pretty neat. Well, price starts to run were above the highest, whereby stocks will be
86 00:15:47,610 --> 00:16:01,020 here, above this high here, and about this high here. Now go back and look at the example where this particular day here, I put in orders. And I was still
87 00:16:01,020 --> 00:16:09,660 learning how to use the ThinkOrSwim platform. And there's a little toggle box where if you toggle it, it'll send your order right to the marketplace, it won't
88 00:16:09,660 --> 00:16:17,550 let you review it. And I had put that on to see if it was going to show me any kind of information on the screen. But it didn't take it off. So what happened
89 00:16:17,550 --> 00:16:25,770 was I put that on, and it was actually an ordered I mistakenly had in so I was hoping to see if that could give me an opportunity to get out of it and cover
90 00:16:25,800 --> 00:16:34,320 with next to nothing or maybe even squeak out a profit. It wasn't having it. So I had to reverse and then go back and go short, wrote it down. And then you'll
91 00:16:34,320 --> 00:16:45,990 see me covering in here and then going long, selling short, reversing going short, buying long in here, inside the order block, rallied up, sold the long
92 00:16:46,110 --> 00:16:56,580 reversed it bought here, got out over here and resold for that big run into that. Okay, that's what I was doing. There's people out there gonna tell you, he
93 00:16:56,580 --> 00:17:05,520 doesn't trade that way. These people don't know how I'm trading. You don't have no idea how I'm trading? None of you do. Okay? I'm teaching you. It obviously
94 00:17:05,520 --> 00:17:13,470 for those individuals that are outside my paid mentorship, which is not open. So please stop emailing asking people are still sending me emails, can I join? No,
95 00:17:13,470 --> 00:17:22,170 you can't join, be content with it, I'm teaching you gold. And it's costing you nothing but the time to sit down here. And it doesn't work, you're going to know
96 00:17:22,170 --> 00:17:30,870 right away. Okay, and that wasting your time. I'm gonna write into the brass tacks that way that people that are weak minded, will know right away, this is
97 00:17:30,990 --> 00:17:37,770 it or it's not that way, you'll know it's just too much work for you. And that's fine, go and do whatever you got to do. And I wish you good luck. But the
98 00:17:37,770 --> 00:17:47,100 individuals that really put the time in and test what I'm challenging to look for. You're gonna see it there. And it repeats like clockwork, okay, it's real
99 00:17:47,100 --> 00:17:58,170 important. You have that mindset. So by starts above here that was taken this swing low forms once this candle closes. So this candle we're watching, does it
100 00:17:58,200 --> 00:18:06,810 go below that short term low? It does. So now we have a shift in market structure that is now bearish. Only because we've taken buys thoughts. Okay.
101 00:18:08,250 --> 00:18:21,510 Fair Value got forms. The market rallies up into that you go short there. What are you looking for? The low here sell stops below here. Sell stops below here
102 00:18:21,540 --> 00:18:32,910 sells dots. And in this fear of a gap here. So if you are in a position that has multiple contracts, or say you have a Forex trade because this works in forex,
103 00:18:32,910 --> 00:18:41,160 too, it's not just limited to futures. Again, I'm just using this asset class because I cut my teeth on these markets. When everybody else was still in
104 00:18:41,190 --> 00:18:49,860 elementary school that's trying to teach today. I was trading the s&p. Okay, I probably sound like a young guy, but I'm actually getting turned 50. So I've
105 00:18:49,860 --> 00:18:58,680 been around for a long time, 30 years, this November 5 30 years, that's three decades. And the things I'm teaching you I'm not teaching you one trick, Pony
106 00:18:59,730 --> 00:19:08,970 insight, these things work on all asset classes. Now I'm not gonna cosign the crypto markets because that only my students are reporting that this stuff works
107 00:19:08,970 --> 00:19:19,170 there. I don't even mess around with it that much to know. Okay, but you can take partials below here, I probably wouldn't do it there, but below here, here.
108 00:19:19,500 --> 00:19:24,990 And then somebody saying, Well, why wouldn't you take them below their ICT? Well, if you're trying to get short here, that's not really that much movement.
109 00:19:25,290 --> 00:19:32,790 So if you're gonna take some thing off your trade below that low, why not just try to reach for that one, and you could get it there? Right here. Okay. And
110 00:19:32,790 --> 00:19:34,770 then below that low was nice as well.
111 00:19:36,030 --> 00:19:49,020 Below this low and this is what I mentioned on the first lesson, okay, elements to a trade setup. This is below the 50 level of this high in that low. Okay, so
112 00:19:49,020 --> 00:20:00,780 50% level, that's what we targeting. Now, this candles low was the high end or first objective inside this gap. So that's your target you got to look for that.
113 00:20:01,410 --> 00:20:09,480 So you're looking for low hanging fruit, the easiest target to get to, you're not trying to be perfect and you grow into eventually holding to see if it will
114 00:20:09,480 --> 00:20:24,870 fill in that gap. Okay, this fear of a gun always going down to this candles high. That's something that you strive for overtime. If you understand what I
115 00:20:24,900 --> 00:20:35,220 just showed you here, that's a very simple process of looking for number one liquidity, gauging what happens without having to know for certain, because you
116 00:20:35,220 --> 00:20:40,800 don't know, you're not going to know until the market shows its hand. This is it showing its hand.
117 00:20:45,780 --> 00:20:56,760 Okay, that's it. Now, let's go into a one minute chart and see how that looks a little bit different, but still has the same characteristics. Here's that same
118 00:20:56,820 --> 00:21:08,940 price structure, just on a one minute chart. The same logic still there, right. So in high taken after liquidity has been traded into this short term high gets
119 00:21:08,970 --> 00:21:19,260 violated, right? When this trades down in here, what's actually occurring, okay, but this in your notes. High frequency algorithms are hammering, they're just
120 00:21:19,290 --> 00:21:30,450 throwing orders in buy, buy, buy, buy, buy, that is not okay, here's the important thing that is not causing, okay, it's not causing the market to go
121 00:21:30,450 --> 00:21:47,250 higher. It's just volume that's coming in. The algorithms that deliver price that offer price are constantly offering the price in the marketplace. That's
122 00:21:47,250 --> 00:21:55,380 what's beginning to spool and go higher. Okay. And regardless of where you want to trade at your limit orders, they may not get filled, where you're trying to
123 00:21:55,380 --> 00:22:08,880 buy with a market order. You may think you're getting in at 14 662. But by the time your order is executed and confirmed, you're in 14 664. That's slippage.
124 00:22:09,420 --> 00:22:17,850 Okay, that's negative slippage. If you were trying to buy it at 14 662, and it filled you at 14 661. That's positive slippage. That's better than what you were
125 00:22:17,850 --> 00:22:32,220 expecting. So when price starts to rally, all this is a default to the algorithm constantly offering price to higher price. Okay, and the logic and argument for
126 00:22:32,220 --> 00:22:38,310 anyone that wants to say, oh, it's buying selling pressure, this guy has no idea he's talking about I know somebody that used to trade on the floor, and he's
127 00:22:38,310 --> 00:22:47,580 laughing at ICT right now. Okay, go into your charts. Forget that out. I'll let you have that perspective for a moment for the argument. But go into the charts,
128 00:22:48,000 --> 00:22:58,260 and see if what I'm not suggesting to you is the truth. Okay. I could sit here and do a complete series on all the things that lead to what I'm saying is true.
129 00:22:58,680 --> 00:23:05,970 But none of you will still believe it. I'm showing a Live account and entries and executions, and they still doubt it. So no matter what I do, there's gonna
130 00:23:05,970 --> 00:23:15,000 be people out there but you didn't do it. wearing orange, you didn't do it in your Corvette Did you flip which I don't flip Corvettes. You're getting all
131 00:23:15,000 --> 00:23:28,770 kinds of stuff out there nonsense. But you don't see anybody going in at Rollins cup. Hello. So we're looking at the swing lower here, market breaks down, trades
132 00:23:28,770 --> 00:23:36,930 big back up into this back up in this fear it got here. And sells off is another fear that he got right there trades up into that as well. This is a one minute
133 00:23:36,930 --> 00:23:50,190 chart. So it's giving you multiple points of execution that you could trade on and then dives. See these two candles here. That's one consecutive bearish order
134 00:23:50,190 --> 00:24:04,320 block. The opening price extended out in time. Why is this a good bearish order block? Because it has that gap. And it's taken liquidity. And there's a market
135 00:24:04,320 --> 00:24:16,110 structure shift. There's your high frequency high power high probability bearish order block, forget everybody else's interpretation of my concept, the order
136 00:24:16,110 --> 00:24:25,590 block. That's it. Okay, what is an order block? Again? You see a lot of people asking what is an order block? Only my students in mentorship know what an order
137 00:24:25,590 --> 00:24:38,550 block is. Okay. What it is, it's changing the state of delivery. Okay, it's a change in the state of delivery. The markets being offered higher, higher,
138 00:24:38,550 --> 00:24:49,290 higher, higher in these two up close candles. How did this series of up close candles begin with this candles opening right there? That opening once this
139 00:24:49,290 --> 00:24:50,640 candle trades below it?
140 00:24:52,560 --> 00:25:01,350 That changes the state of delivery. So you go back to that point of reference right there. And that's why it's sensitive. The algorithm remembers that right
141 00:25:01,350 --> 00:25:10,350 there. Okay, that's all I'm gonna give you on the free mentorship level. But that is your answer. Okay? That is what an order block is, is a change in the
142 00:25:10,350 --> 00:25:18,600 state of delivery. Much in the same way, all of this movement down here, all these down close candles, the open on that candle starts this series of delivery
143 00:25:18,600 --> 00:25:29,370 on the downside. When that opening price gets violated here, it changes the state of delivery now it was offering sell side, when it goes above that
144 00:25:29,370 --> 00:25:40,650 opening, now it's offering by side will it be doing after that it'll be looking for by start by start by starts. That's because it's offering by side liquidity.
145 00:25:41,160 --> 00:25:47,730 See, you guys don't even know what you're talking about. You're trying to teach my concepts. And you have no idea what you're doing, you're talking about things
146 00:25:47,730 --> 00:25:58,770 in the left side of the chart, trade it, do it, okay. You don't know what you're looking at. And you're hurting the people you call your students. And then right
147 00:25:58,770 --> 00:26:07,050 away when people don't know how to use them, or understand what to do with them. They'll say, Well, this stuff doesn't work, because they learn from someone it
148 00:26:07,050 --> 00:26:18,180 doesn't know what they're doing. Okay. It's blatantly obvious what it is. But okay, same thing here by side is being offered until that opening price is
149 00:26:18,180 --> 00:26:26,040 violated right there, then it changes stated delivery occurs. Now the markets gonna be doing what offering sell side liquidity, what's that mean is going to
150 00:26:26,040 --> 00:26:33,120 start going lower and attacking the sell stops all the sell side liquidity, it's offering it to the marketplace. That's what's happening. That's what the
151 00:26:33,150 --> 00:26:41,490 algorithm is doing. That's what the algorithm does, okay? You buying and selling me buying and selling everybody over there on Reddit is not going to change
152 00:26:42,210 --> 00:26:54,750 anything at all, it's not going to do anything. And the argument that defeats all that buying and selling pressure is how do you argue against the bowl
153 00:26:54,750 --> 00:27:03,060 squeeze and the bear squeeze. There's a short squeeze going on in the markets rallying up when it's been bearish. That's the stir cop out that's their way of
154 00:27:03,060 --> 00:27:12,750 saying well, you know, thereby shorten. And now they're covering. So there it is. And I learned the same thing, folks, I believe all that garbage. 2000 Plus
155 00:27:12,750 --> 00:27:24,630 books, I know what those books told me, is what you're learning too. Because the same people teaching today, retail garbage, Elliott Wave this and that. It's all
156 00:27:24,630 --> 00:27:32,610 stupid stuff. Man. It has nothing to do with why these markets are doing what they're doing. Zero has nothing to do with it. Don't worry, I got proof today.
157 00:27:34,020 --> 00:27:43,080 But the market goes down to that 50% level, because it's going down to what I teach you what to say in the first video, it's going down from a premium market
158 00:27:44,640 --> 00:27:52,230 relative to this low and this high 50% is here that's equilibrium. So it's going to go down to a discount and that's that gap for you here does it doesn't look
159 00:27:52,230 --> 00:28:00,600 like a gap so much here. But we go back up one more time. That's that single opening right there on the two minute chart but then on the one minute chart,
160 00:28:00,630 --> 00:28:07,170 it's two candles that make that up but you're going to have to do is go through a progression of going from the three minute to minute one minute chart and
161 00:28:07,170 --> 00:28:17,010 you'll get your market structure in your areas of where it wants to look for an imbalance or older low and high and it just makes it easy but just a real nice
162 00:28:17,010 --> 00:28:34,170 delivery there. And here's the lipstick on it on the one minute chart swing high is broken market structure is now bullish rallies taking by stops taking by
163 00:28:34,170 --> 00:28:46,740 start taking by stops this right here these highs right here it's just staying below that low it's building up more interest that this is what resistance that
164 00:28:46,740 --> 00:28:56,280 is engineering liquidity. That way when this runs above it, those individuals that know what you're learning today, they know that that's a pool of liquidity
165 00:28:56,460 --> 00:29:09,420 for buyers coming in at a high price why is that useful? Because smart money they bought down here or here or here or here or here that's where they sell to
166 00:29:09,420 --> 00:29:21,870 high seeking buyers it's not hard logic folks. It's not complicated. Okay, it just feels complicated cuz you see other people trying to teach something and
167 00:29:21,870 --> 00:29:30,120 you hear for reading the comments you're teaching it better than ICT does know you don't know you're not you're not doing you're actually teaching it
168 00:29:30,180 --> 00:29:40,320 incorrectly and without the real context of what it is that you're missing. But I get it you think every down closed candle is a bullish order block and
169 00:29:40,320 --> 00:29:49,560 applying that it is a bearish order block and that's not the case. Look in here. Okay, for the guys that say I did not take trades or I didn't trade this way.
170 00:29:50,100 --> 00:29:51,930 See that gap right there. See that?
171 00:29:52,440 --> 00:30:04,170 She got down close candle right there. That's your order block boom by right there. What about this dropping down? All these candles here are more
172 00:30:04,770 --> 00:30:19,740 significant if you look at it on a two minute chart, see that it becomes one order block. Right here, buy it sell short, buy it again, we've got up into two
173 00:30:19,740 --> 00:30:30,120 stops, sell short, reverse and ride the larger swing down. Don't listen these Yahoo's outdated. Say that I'm not proving something to you, I'm proving it.
174 00:30:30,150 --> 00:30:39,240 That's what I said I was gonna come in here this year and do that's his whole point of being here this year. It's my 30th anniversary, November 5, I've been a
175 00:30:39,240 --> 00:30:53,550 trader in the markets, living and breathing this stuff for 30 years. You're not really in any position to demand anything from me, I enjoy doing this. But I
176 00:30:53,550 --> 00:31:01,980 don't need to provide any kind of proof do you either, but I'm loving it this year. I'm slowly putting it out there and enjoying all the naysayers and the
177 00:31:01,980 --> 00:31:13,140 things they're saying. And it's just fun, because they have no idea what I'm about to bring this entire year, none of you are going to doubt anything. So the
178 00:31:13,140 --> 00:31:25,320 one guy chart, just the real nice deliver here as well, filling that Fairbury gap, changing the state of delivery. Now it's offering sell side, what's that
179 00:31:25,320 --> 00:31:39,750 mean? It's going to match up, sell stops, it's going to keep going below lows into an imbalance until we get down to a discount. Is that hard? Is it hard to
180 00:31:39,750 --> 00:31:50,490 see what I'm showing you here? Pretty clean, clean chart. Now I don't have all these things on my chart when I'm watching price because I already know what I'm
181 00:31:50,490 --> 00:31:58,770 looking for. And I don't want to have any distractions. And I don't want to have a level or some kind of annotation that's going to keep me thinking only with
182 00:31:58,770 --> 00:32:10,320 that perspective, okay, or that idea. It allows me to be fluid with what the markets actually doing, versus going in and saying, Okay, this is what I think's
183 00:32:10,320 --> 00:32:18,270 going to happen. And this is the only thing that can happen. You understand what I just did there. I allow myself to be flexible. Whereas if you have all these
184 00:32:18,270 --> 00:32:32,700 things you're putting on your chart, you're only only seeing your will be done. So I keep my charts clean. And then I add annotations. So that way my students
185 00:32:32,700 --> 00:32:41,610 can see what the internal dialogue in my mind was while watching price do what it does naked. There's nothing on the charts at all when I'm trading zero,
186 00:32:41,700 --> 00:32:58,800 nothing. Okay. So with that, I want you to think about how this is useful. Okay. Number one, you're looking at London highs and lows, the session for London.
187 00:32:59,520 --> 00:33:07,230 Open, okay, for instance, like two o'clock in the morning to five o'clock in the morning. New York time, every time I tell you just always set it with New York
188 00:33:07,230 --> 00:33:15,210 local time. Two o'clock to five o'clock in the morning. That's your london session. What's the highs and lows of that session? Okay, that's important
189 00:33:15,210 --> 00:33:25,830 because the markets will probably sweep above those highs or sweep below those lows, and create situations like this. Okay. And the New York session is seven
190 00:33:25,830 --> 00:33:34,290 o'clock in the morning to 10 o'clock in the morning, New York local time. Okay, what's the session high and low for that? And do the same thing for Asia. Okay,
191 00:33:34,380 --> 00:33:48,450 7pm to 9pm. And that's it. Those are the three times of the day that I'm looking for specific key highs and kilos, and any intraday high and low forming right
192 00:33:48,450 --> 00:33:57,960 before the equities open at 930. Pretty easy, right? The hours of operation again, are generally between 830 in the morning to 11. But it can be extended
193 00:33:57,960 --> 00:34:00,270 all it to New York lunch noon, I do not
194 00:34:01,290 --> 00:34:12,060 tend to take trades after noon, local time, New York, that hour is usually very problematic. And it just, it's better not to even look for any kind of setups.
195 00:34:12,480 --> 00:34:21,900 Wait until one o'clock, preferably really 130 to four o'clock, then you get the afternoon trend. Typically, you'll see between two o'clock and three o'clock
196 00:34:21,900 --> 00:34:30,870 there's a set up that usually forms in the afternoon trend are set up in that period of time of the day. That will also offer opportunities, but that's
197 00:34:30,900 --> 00:34:38,160 outside the scope of what I'm going to be teaching in this mentorship. But there's lots of things you can look on YouTube about the afternoon session. And
198 00:34:38,310 --> 00:34:46,680 you can just combine some of the things that I'm going to teach you here. And just it's not hard to make an addition to what you're learning here. That way if
199 00:34:46,680 --> 00:34:56,340 you want to try the afternoon session, you can obviously pick up some insights from other youtubers that do trade futures. But for developing students, this is
200 00:34:56,340 --> 00:35:09,450 enough. I promise you this is enough. Okay. Alright, so we talked about internal range liquidity, and internal range liquidity is looking for short term lows or
201 00:35:09,450 --> 00:35:19,710 short term highs inside a price leg that we're retracing back into. Okay, that's all it means internal range. Liquidity is a short term high or low with stops
202 00:35:19,710 --> 00:35:30,900 above or below it, or an imbalance in that same range of price action. And I taught you market structure shifts showed you exactly all of it's necessary.
203 00:35:31,440 --> 00:35:40,920 That is all that you require. And the skill set of identifying pools of liquidity that is going to be something you learn rather quickly just by going
204 00:35:40,920 --> 00:35:47,280 through old data and looking at the times of the day I gave you in this lecture. Alright, your homework is you're going to go through your E Mini futures
205 00:35:47,280 --> 00:35:54,420 intraday charts. And give me looking for stop hunts that lead to market structure shifts, intraday, you're going to log your examples with your own
206 00:35:54,420 --> 00:36:06,000 annotations for your study journal. So what I showed with the break in the market going higher and lower above old highs or lower, below an old low, that's
207 00:36:06,090 --> 00:36:16,350 running for stops, that's a stop hunt, then you're looking for that signature for the market structure shift 123 to one or one minute charts. Okay, if you
208 00:36:16,350 --> 00:36:27,810 look for that, between 830 in the morning to noon, New York local time, in the money markets, or if you're watching the micro markets, the same logic exists,
209 00:36:27,840 --> 00:36:38,130 okay. But you're going to start going back from today. And go back as far as the data will allow you, the more you do it, and you annotate your charts, the more
210 00:36:38,130 --> 00:36:45,720 experience you're going to have. And it's pseudo experience. Yes, but you're teaching your brain, I use this analogy a lot with my paid mentorship students.
211 00:36:47,250 --> 00:36:56,670 It's like hunters, okay? To know where you're gonna find a deer, if that's what you're going to go out and hunt, you need to know how to track one, okay, or set
212 00:36:56,670 --> 00:37:04,380 up in its treestands. Wait for the walk by, but usually, they go out and he walk around in the woods and look for tracks. Would you know what a deer track looks
213 00:37:04,380 --> 00:37:12,150 like? Before I was shown one, I didn't know what it was. Okay, but because I'm showing you what it looks like, that's all this lesson was predominately
214 00:37:12,480 --> 00:37:24,750 focusing on is the actual view of what it looks like the details, what you don't need is anything above and beyond what I'm showing you. The only thing that you
215 00:37:24,750 --> 00:37:34,440 need is what I've shown you here. It's simple. It's straight to the point. And I'm only talking to that way you understand that this is all that is required.
216 00:37:35,430 --> 00:37:45,690 Notice there is no commitment of traders. Notice there's no breakers, there's that stripped it down to the Chrome. Now this is the only way you can trade. But
217 00:37:45,690 --> 00:37:54,390 I'm showing you something I think personally, in my opinion, this is so universally simplistic. All of you should be able to do this one. Okay, in my
218 00:37:54,390 --> 00:38:03,690 opinion, I think this is it. And that's why I more or less built it because I think my daughter, which has zero interest in trading, I think that this is
219 00:38:03,690 --> 00:38:10,950 going to be easy for her to see it and understand what to look for. It doesn't have a lot of moving parts. And that is that it's very specific times of the day
220 00:38:11,130 --> 00:38:20,970 specific highs and lows you're going to look for. It's simple. But you won't appreciate how simple it is until you go back into your charts. And you annotate
221 00:38:20,970 --> 00:38:29,520 your 15 minute timeframe for your buyside liquidity pool and your salsa liquidity pools. And then going down into the three minute two minute one minute
222 00:38:29,520 --> 00:38:37,440 chart. So for every individual day that you're logging, and your back testing, back testing is just dressing your chart out like I'm showing you here.
223 00:38:38,640 --> 00:38:48,540 And then studying it not just do It's okay, I'm done. Really go into see how price moves and how it delivered. How many pips did it move? How long did it
224 00:38:48,540 --> 00:38:57,180 move going higher or lower? How much drawdown did it put on your position if you would have taken one, all those things, you want to annotate that in your chart.
225 00:38:57,210 --> 00:39:05,190 So that way, when you go back through your study journal, you'll have many examples that look at and because you're looking at it, and you're seeing it
226 00:39:05,220 --> 00:39:14,010 over and over again, repetitively. When you have a period of time where nothing feels like it's working and you feel confused, you want to go back through your
227 00:39:14,010 --> 00:39:20,730 study journal and look at these examples. Because it will encourage you through periods of time where you just feel like it isn't clicking, okay? It's why it's
228 00:39:20,730 --> 00:39:31,380 important to have a study journal, because you're going to see this stuff is happening every single day, every single day. And don't take the Infancy that
229 00:39:31,380 --> 00:39:42,420 you have right now. And the lack of experience and amplify that to there's no way I can learn how to do this because that's a lie. That's a facade. Don't buy
230 00:39:42,420 --> 00:39:49,440 into that view, okay? It's something that you're going to have to grow into. And it's going to be quick for some and it's going to be slower for others and
231 00:39:49,440 --> 00:39:58,740 there's no way I can make it easier than this. Okay? Because that workload that you have to go through a back testing and logging, acquiring examples. The more
232 00:39:58,740 --> 00:40:10,920 time you do that. The more examples you acquire in back testing, I swear this is the secret, okay? Because that is the thing. That's the work that's required. A
233 00:40:10,920 --> 00:40:19,080 lot of people say they do it, they don't, okay, they go back a couple days and say, Oh, this is, I don't feel like I'm getting anything from this. But that's
234 00:40:19,080 --> 00:40:26,610 the reason why they fail. Because that's the work that's required. You know, and having 10 pages in a notebook saying, I took notes, you didn't take notes, you
235 00:40:26,610 --> 00:40:35,760 scribbled, you wasted your time you knew going in, you weren't going to be that headstrong about doing it. And that's what is required to learn this. Otherwise,
236 00:40:35,760 --> 00:40:43,020 if you don't have that mindset, this isn't going to be for you. Because it's going to require work, it's going to take effort, and organization and personal
237 00:40:43,020 --> 00:40:51,060 responsibility. If you don't have those characteristics, you need to develop them. If you don't develop them and patience, you must go out there and find
238 00:40:51,060 --> 00:41:00,750 somebody that's good at giving you trade signals. And just submit to that, and you good luck with it. But this isn't it I kind of another portion of the video
239 00:41:00,750 --> 00:41:09,180 I want to show you now. And I'm going to show you this logic actually working today in the NASDAQ E Mini contract. Alright, so we're looking at trading views
240 00:41:09,180 --> 00:41:20,910 chart in the backdrop, and I have the TD Ameritrade opened overtop of it scrunched down so that we can operate with the trading view. And I'm going to
241 00:41:20,910 --> 00:41:34,770 highlight in trading view a fair value gap after a market structure shift that's bullish. And we'll show you an imbalance that is in a premium. A scene that just
242 00:41:34,770 --> 00:41:46,950 the opposite of what I've been showing you change the color on this. And the idea is I want to see it drop down into that green area. But if you look real
243 00:41:46,950 --> 00:42:00,300 close, there's actually a smaller little fairway got just below that green box, okay, this is not supplying demand. The idea is I want to see it drop down to
244 00:42:00,300 --> 00:42:07,740 that green box. And I don't know if it's going to dip into the lower fair value gap. So whenever there's two fairway gaps like this, this is where your notes in
245 00:42:07,740 --> 00:42:17,640 case you missed this, the idea is, I'm going to let it trade down to that lower one, I'll sacrifice that better entry. And if it trades down there and trades
246 00:42:17,640 --> 00:42:26,070 into it, and then comes right back up into that green box, the first higher fair value got, I'll enter when it's in there expected, the lower one won't be
247 00:42:26,100 --> 00:42:40,260 retreated to Okay. We'll be trading with a stop that will have essentially three and a quarter percent risk. I'm not suggesting that's a size of risk for you.
248 00:42:40,320 --> 00:42:48,690 I'm just telling you. That's what I have in mind when I'm taking this trade. And this is again, just my personal belief in this, I'm not suggesting that you
249 00:42:48,690 --> 00:42:58,110 should believe me or subscribe to this view. Because I'm showing you a live account. This does not mean that every trade you take forward from this day on
250 00:42:58,140 --> 00:43:08,040 is going to be like this doesn't mean guarantees profit doesn't. But my belief in my faith is that I've seen this work so many times over the last 30 years
251 00:43:08,040 --> 00:43:17,520 that I know that this is something that's going to work enough for me. And that's all it matters, it's a personal endeavor, human you're speculating. If
252 00:43:17,520 --> 00:43:21,480 you don't have any faith in it, then obviously you would never put live money in it.
253 00:43:24,960 --> 00:43:35,850 Alright, so the markets starting to drop down a little bit in here. And let's say for instance, that it runs up into that upper rectangle first, before going
254 00:43:35,850 --> 00:43:42,570 down the green one, then I would nix the trade. And that means I wouldn't take a trade out, move to the sidelines and probably do nothing the rest of the morning
255 00:43:42,720 --> 00:43:50,730 or watch and see if there's something else that sets up. Alright, so now I'm inside that rectangle. But notice again, I want to see if it goes down to that
256 00:43:50,730 --> 00:44:01,260 lower fair value gap that's not highlighted. I mentioned it when we get into it. That right there, I'm willing to sacrifice that because that's actually a better
257 00:44:01,260 --> 00:44:15,930 buy. But if we go back up into the higher fair value gap and create like a tail on this particular candle, I'll see that as just running for a lower imbalance
258 00:44:15,930 --> 00:44:18,960 and then it should accumulate in here
259 00:44:25,409 --> 00:44:34,709 and I have my trigger on the buy button. Okay, I'm just going to go with a buy at market and then trying to do anything advanced here
260 00:44:40,619 --> 00:44:51,779 okay, and if you look at the bottom of the TD Ameritrade Live account module, you'll see NASDAQ symbol, and you'll actually see my profit and loss going as
261 00:44:51,779 --> 00:45:04,349 the trade is entered. And I took a trade in the E Mini s&p And it was basically a scratch and making $75 Till I put a trade on in, came back on me stop mean,
262 00:45:04,499 --> 00:45:05,339 that was the end of that
263 00:45:11,639 --> 00:45:28,799 alright, I am putting the order in. And there's the confirmation that the orders were received. So now I'm long, you can see at the bottom of the pop out, it
264 00:45:28,799 --> 00:45:43,499 shows that I'm down initially what looks like $20, and I'm up $20 right now. So now down 75. So this is the part of trading where it feels scary. If you've
265 00:45:43,499 --> 00:45:51,689 never traded with live funds, and you just feel like you got to watch that number of how much money you're making and losing. That's the worst thing to do.
266 00:45:51,959 --> 00:46:04,499 Okay, what I'm watching is the chart, does the chart continuously, keep giving me feedback visually, that it's accumulating and not going lower. Now it can go
267 00:46:04,499 --> 00:46:13,409 one more time back into that lower fair value gap that's permissible to me, I'm willing to endure that. I just don't want to see it overlap that entire thing
268 00:46:14,429 --> 00:46:24,329 and go lower, because then I'd have to close the trade and preferably see my stop. Notice the bodies of the candles are staying relatively inside that fair
269 00:46:24,329 --> 00:46:33,929 value, got that shaded green. Now I again, I'm only adding this to the chart because I knew I was gonna record it and share it with you today. But I do not
270 00:46:33,929 --> 00:46:43,709 have this in my charts. Okay, the only annotations I have in my charts is when I'm teaching my students. And since you're here, at least for right now, I'm
271 00:46:43,709 --> 00:47:03,239 calling you, my students. Even the haters Alright, so with the aid of hindsight, because I live this moment, this morning, it does go down one more time, instead
272 00:47:03,239 --> 00:47:05,879 of into those wicks that are forming.
273 00:47:27,239 --> 00:47:38,369 And when you put a trade on, you kind of like give the complete control of everything to the marketplace. And you want to just allow the market to do what
274 00:47:38,369 --> 00:47:51,209 it's going to do and not try to overthink every fluctuation, every little minor movement in the price action is not something that is going to hopefully sway
275 00:47:51,209 --> 00:47:58,529 you. So I've already had it in my mind that it could go back down and make a slightly lower low then there's two little wicks that it's formed inside the
276 00:47:58,529 --> 00:48:12,479 lower fair value got. So since I had that expectation that it could potentially do that. And desensitizing myself to that in the event that it forms. An ideal
277 00:48:12,479 --> 00:48:19,799 scenario would be it doesn't deal with it at all, obviously. But I'm allowing for that price action, especially with the volatility that we've been seeing the
278 00:48:19,799 --> 00:48:34,589 last few days. And what I'm thinking right now is they're taking it down one more time to accumulate more Long's. Notice I'm saying that not it's selling
279 00:48:34,589 --> 00:48:36,359 pressure driving price down
280 00:48:47,340 --> 00:48:58,380 I think this, this is where I took the most heat on the trade if I'm not mistaken, it was like $455 of trade draw down while being still in the trade,
281 00:48:58,740 --> 00:49:12,900 which is below the threshold I've already said. My maximum risk on a trade if I'm trading competitively it's four and a half percent per trade. Generally, I
282 00:49:12,900 --> 00:49:18,660 like to take a trade that I feel comfortable with around three, three and a half percent that's a good trade for me.
283 00:49:24,809 --> 00:49:34,859 Okay, showing signs initially that it's wanting to go higher. And what I'm trying to do is keep my focus on that lower level or the the bottom of that pink
284 00:49:34,859 --> 00:49:43,559 rectangle. That's the low hanging fruit. That's the easy target. I'm telling you to try to practice and learn to reach for the ideal scenario would be go all the
285 00:49:43,559 --> 00:49:55,679 way to the top of that pink. But while you're learning, don't do that, okay. It's easier just to let it trade the low end and just take it off when it gives
286 00:49:55,679 --> 00:50:09,479 it to you. I have my trigger on the flatten button. So cancels a reorder, takes me completely out of the marketplace. As soon as it touches the low end of that
287 00:50:09,479 --> 00:50:28,469 rectangle, I'll collapse the trade. Right now I'm up seven, nine, almost $900 895-930-5925. Again, you can watch that fluctuation in the lower right hand
288 00:50:28,469 --> 00:50:42,389 corner of the pop out. I'm at 1100 plus less than 49. Okay traded there touched it now uncollapse in the trade. They're just like that. And that's it. Now, my
289 00:50:42,389 --> 00:50:56,789 accounts booked in mark to market with $1,190 in game, and the balance now reflects it with $27,915.11. So there's TradingView showing the chart I'm
290 00:50:56,789 --> 00:51:04,529 watching because I like trading these charts. I don't like TD Ameritrade charts. It's I don't like them. So I'm just using the pop out what is why are you
291 00:51:04,529 --> 00:51:14,129 showing us things scrunched up and just I'm not hiding anything. You can see it right there. So let's go over and take a look at the chart now. You can see
292 00:51:14,159 --> 00:51:29,039 nothing has changed or magnified that pop out. So it's entirely taking up the entire screen. We're gonna go to the NASDAQ E Mini contract symbol. And I am so
293 00:51:29,039 --> 00:51:30,539 clumsy with this platform still.
294 00:51:36,599 --> 00:51:46,859 Not sure I'll get real good at by the middle of the year. And hint nudge nudge. Alright, so we're gonna look at this day. And there's the chart on one minute
295 00:51:47,099 --> 00:51:58,649 and I'm going to add an overlay. Okay. But I'm going to put in so you can see where the trades are. In that chart, there's the executions, Bada bing, bada
296 00:51:58,649 --> 00:52:08,729 boom. And there is these areas I showed you on the trading view chart. So for the inquiring minds that wanted to see a live chart, and live account and all
297 00:52:08,729 --> 00:52:18,569 that business in the logic of what I'm teaching in the YouTube channel, I humbly submit this until I talk to you on Thursday. Be safe