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ICT YT - 2022-02-25 - ICT Mentorship 2022 Episode 12.srt

Last modified by Drunk Monkey on 2022-02-28 11:16
1 00:00:04,620 --> 00:00:15,540 ICT: Alright folks, welcome back. I do hope everyone's doing well. So we're looking at episode 12. This lesson in lecture is going to be on the topic of
2 00:00:15,600 --> 00:00:26,820 market structure for precision technicians. Now niggly going into this, this is an advanced price action theory, you're going to have a lot of questions, it's
3 00:00:26,820 --> 00:00:35,700 going to cause all kinds of anxiety for those that just feel like you have to mark the first time you watch a video. Trust me, you will not and you cannot
4 00:00:35,700 --> 00:00:45,240 learn this in one video. Okay? This is actually going to be a lesson even my paid mentorship group has yet to see. Okay, so I want to give you something
5 00:00:45,240 --> 00:00:58,260 that's fresh, something that is deep, that will allow you don't your charts and start studying a little bit more well, deeper than the normal higher high higher
6 00:00:58,260 --> 00:01:03,060 low idea that is made up of the retail view of market structure.
7 00:01:08,190 --> 00:01:19,350 Alright, here is the NASDAQ March contract for 2022. Out here so he already hissing and moaning the forex traders in my group, When are you ever going to
8 00:01:19,350 --> 00:01:33,750 talk about euro dollar? Well, let me remind you, what I'm teaching works in forex. Okay? It works in stocks, it works in bonds. It's up to you to decide
9 00:01:33,750 --> 00:01:43,230 what asset class you're gonna work with. Okay, so I'm teaching price. This is the asset class that's moving around nicely. So I'm using it as a medium. Okay,
10 00:01:43,530 --> 00:01:55,410 you could just as easily go into a Aussie dollar or pound yen chart, and you'll see these things happening as well. Okay. Trust me, we'll get into Forex again.
11 00:01:55,650 --> 00:02:05,400 Okay, I haven't abandoned Forex, I just want to mine this beam. And it's available in volatility right now with the index futures. Alright, so obviously,
12 00:02:05,400 --> 00:02:14,910 we can see, with the benefit of hindsight, that the things we were looking for in price action has come to fruition, we're looking for the run below these lows
13 00:02:14,910 --> 00:02:28,110 in here, we got that we were looking for a run and rebalance back up into this period I got it did so handsomely, broke lower, overnight, with all the wartime
14 00:02:28,290 --> 00:02:39,300 things that are going around the globe. And you know, what I'm referring to that cost, a little bit of excitement on the downside. And then we're back above the
15 00:02:39,300 --> 00:02:48,210 short term low. I'm not convinced at this point, that we have made a low, so that way we can put that to bed right now. I'm not in the business of picking
16 00:02:48,210 --> 00:02:57,840 tops and bottoms. So if you feel like you're gonna go out there and do that, just letting you know that I teach my paid group not to do that. And I don't go
17 00:02:57,840 --> 00:03:08,910 out there actively trying to do that either. But we're gonna go into a deep dive of market structure inside this area. Now, before I do this, I want you to
18 00:03:08,910 --> 00:03:17,190 understand this part, this is the part that seems boring. This is the part that gets the most complaints from those individuals that will never ever do well, or
19 00:03:17,190 --> 00:03:29,640 succeed in this, because they want five minute trainers for something that's extremely technical, and you just can't strip it down to very easy ideas. Okay,
20 00:03:29,640 --> 00:03:38,280 so it's going to take a little bit of study thinking and homework of you going through old price data. And you'll start seeing these things that I promise you,
21 00:03:39,180 --> 00:03:48,870 this video will cause a light bulb moment for you. And you'll start to see things that are in the charts all the time, but you are not aware of it. And
22 00:03:49,680 --> 00:04:00,660 it'll also allow you to go back into old moves and see that this is in fact very true. And you can use it to confirm or negate a price move. I get a lot of
23 00:04:00,660 --> 00:04:10,230 questions through TradingView people posting, Hey, yo, can you answer this for me? Can you answer that for me? I don't make it a business of doing that.
24 00:04:10,260 --> 00:04:19,500 Because I don't have a lot of time for it. But I use those questions in these talking points in my lectures, not only in this mentorship, but in my private
25 00:04:19,500 --> 00:04:33,480 group. So the questions I get a lot is how do I know if I'm going to sell above old high? How do I know it's not going to keep going higher? Well, that's the
26 00:04:33,480 --> 00:04:45,210 underlying market structure. And the trust in the factors that I'm going to kind of like Teach you tonight. Me teaching it to you is not going to transpose my
27 00:04:45,210 --> 00:04:53,340 trust that has to be developed in your learning curve. It's going to take time, how long is it going to take I don't know all of you are going to do it
28 00:04:53,340 --> 00:05:01,710 differently. But you're going to arrive right on time. Exactly when you should. That's when you're going to get it all Okay, it's a matter of how much time and
29 00:05:01,740 --> 00:05:13,470 effort you put into studying it. Because these candlesticks, you can make them say anything, you want the beat on them, and they'll submit to anything. But you
30 00:05:13,470 --> 00:05:23,760 want to know what they're likely to be hinting at. And I'm going to give you those clues tonight. But in here, we're going to take a deep dive into that
31 00:05:23,760 --> 00:05:36,120 price action rate there. Alright, so we are looking inside the fair value gap on the daily chart, this was the high end of that period, I got this with the low
32 00:05:36,120 --> 00:05:50,760 and the fair value got the timeframe on this chart, as you can see here, one hour. And I've outlined market structure in the idea of long term high, long
33 00:05:50,760 --> 00:06:04,860 term low, short term high, short term low. And in between those two swing points, there's an intermediate term high and an intermediate term low. When we
34 00:06:04,860 --> 00:06:05,790 look at price,
35 00:06:07,260 --> 00:06:16,830 we're not looking for just the simple, higher high, higher low, therefore it's a bullish market or uptrend. That's not what I'm looking at. I'm looking at does
36 00:06:16,830 --> 00:06:30,420 the market have a reason to go up for buy side liquidity or buy stopped? Or is it likely go up? to rebalance an imbalance? Which is like a feared icon? Or is
37 00:06:30,420 --> 00:06:43,230 it likely to go lower to sweep out short term lows? For sell side liquidity or sell stops? Or is it likely to go down to rebalance an old imbalance? Or a fair
38 00:06:43,230 --> 00:06:56,460 value get below market price? That is the number one question that I have before I sit down in front of my charts. That's what I'm looking for. What is the
39 00:06:56,700 --> 00:07:07,950 current market narrative? What is it likely to be doing right now? I don't care about patterns in price action. I don't care about anything harmonic. I'm not
40 00:07:07,950 --> 00:07:18,330 looking for any kind of Elliot waves. I'm not looking for any kind of ratio idea. I'm not looking for anything that you can attribute to a retail mindset.
41 00:07:19,380 --> 00:07:29,310 Nothing except for those two questions. Is it likely to go up for stops? Or go down for stocks? Of course, you're gonna go higher to rebalance, or lower to
42 00:07:29,310 --> 00:07:43,080 rebalance. Now, how do I arrive? At that idea? Is it gonna go higher as you can go lower? Because that kind of leans on that question I told you many times, if
43 00:07:43,080 --> 00:07:51,930 there's one question I get asked the most it's TTP bias. In other words, you want to know, where's the market going next. And that's good. That's the next
44 00:07:51,930 --> 00:08:01,950 draw on liquidity. But the daily range will not always submit to that bullish or bearish, right from the opening, go higher, or wait for the opening go lower.
45 00:08:02,280 --> 00:08:12,750 Sometimes you'll have consolidation intraday, and you may have been trying to take a trade that was based on an idea that you came to, that will be bullish.
46 00:08:13,350 --> 00:08:19,890 And maybe it did give you an opportunity to be in a trade that was profitable for a period of time, but you held on to it thinking the daily range was going
47 00:08:19,890 --> 00:08:30,930 to keep on going higher. And it turned on you. These ideas I'm going to teach you in this lecture here will help you identify the likelihood that your idea is
48 00:08:30,930 --> 00:08:42,330 probably been proven, inaccurate, but you have to be receptive to the clues that price is giving you. That's the number one reason why I abandoned indicators.
49 00:08:42,330 --> 00:08:52,620 And if you have anything on the charts that cover up candles, or draw your attention to something that you're putting on the chart, and I call that you
50 00:08:52,620 --> 00:09:03,000 facetiously lipstick, okay? That's what this chart is shown here. It's this list that gets me communicating how I am internalizing this price structure, this
51 00:09:03,000 --> 00:09:11,880 fractal in price. I'm looking at it with this idea. Now I'm looking at it in a matter of seconds, I come to this conclusion, I'm looking at the highs. And I'm
52 00:09:11,880 --> 00:09:20,460 looking at the relationships between each swing high each swing low. And I'm coming to a conclusion studying one swing at a time. And I'm going to come up
53 00:09:20,460 --> 00:09:28,620 with the idea that it's likely to go lower because that daily chart, I called it in front of all of you I outlined I told you where I was going to go so that way
54 00:09:28,620 --> 00:09:36,570 we understand one another. I'm teaching something directly proved before the fact. So it's not like me coming back to this area here. Because if you haven't
55 00:09:36,570 --> 00:09:43,200 watched the videos prior to that, say you just found this YouTube channel and you're watching this when it sounds like the typical guy that comes on YouTube
56 00:09:43,200 --> 00:09:52,500 says here's something that happened, you know, and I can sit down and look and appear smart, because it's already happened and I have no real risk in being
57 00:09:52,530 --> 00:10:03,720 wrong. I told you it was gonna go lower from here, and it did. Now I'm going to take you inside that price action An outline what it is that I look for what it
58 00:10:03,720 --> 00:10:14,070 is that I looked for at the time. And how I felt confident was going to go lower. Okay. So right away, we know that prices traded up to the high end of
59 00:10:14,070 --> 00:10:24,090 that fair value gap. And again, this level here is that daily chart, let me go back up one chart. That's this level here. Okay, it's on this candle that low.
60 00:10:24,570 --> 00:10:32,850 And the low of the fair value gap is this candles high. Dropping down into the hourly chart, that's the high end of the fair value gap. This is the low in the
61 00:10:32,850 --> 00:10:43,350 fair value gap, again, on an hourly chart, so that we have our bearings. So when the market traded up into and just above that fair value gap high, this red
62 00:10:43,350 --> 00:10:56,670 level here, once it started to break down and go lower, it traded back down into this candlesticks, high. So we're trading back inside this range and range
63 00:10:56,670 --> 00:10:57,030 bound.
64 00:10:58,410 --> 00:11:12,870 Since I am expecting the daily chart to be the parent of this price structure, all minor lower timeframe swings are going to be subordinate to it. And what
65 00:11:12,870 --> 00:11:23,910 does that mean? This now is a long term high, I do not expect this high to be broken to the upside. Should it be broken to the upside, that means that my
66 00:11:23,910 --> 00:11:35,250 daily analysis, expecting this level here to hold price and to be a factor in the algorithm repricing and going lower at a later time. If it goes above that,
67 00:11:35,250 --> 00:11:46,290 then I'm probably wrong in my analysis. So therefore, I demand more information by studying more price action sitting on my hands. Or if I have a trade on, it
68 00:11:46,290 --> 00:11:58,470 means that I have to admit that I'm wrong. And the stock out that may occur is just me, managing risk is a losing transaction. It does not mean your model is
69 00:11:58,470 --> 00:12:09,330 flawed, it does not mean that you're a failed trader, it just means that that transaction was not a profitable, and it's just a cost of doing business. But as
70 00:12:09,330 --> 00:12:19,590 long as price remains the low this high. My idea is this is a long term high, because it's framed on what a higher timeframe resistance level, we're going to
71 00:12:19,590 --> 00:12:27,270 talk in terms of retail ideas, so that way, we can understand something in a simplistic manner. But we'll build on the ideas that will help move you away
72 00:12:27,270 --> 00:12:35,970 from simple support resistant ideas. So this long term high should remain intact. In other words, price should not go higher than that, we trade down to
73 00:12:35,970 --> 00:12:46,230 the discount level of the low end of that fair value get in starts to find support, rallies back up, trades near the high but does not take that out very
74 00:12:46,230 --> 00:13:02,460 important. Once it starts to break down and consolidate in here, retail ideas will see a lot of trust in the idea that's potentially a bull flag. I love
75 00:13:02,460 --> 00:13:15,630 seeing those patterns because I like to fade them. So that's a false bull flag. And then we see price break down like this. And then rally back up every single
76 00:13:15,630 --> 00:13:28,830 time. This is important, this is the part where you start writing down these details. Every single time. Price rebalances an imbalance like we have this
77 00:13:28,830 --> 00:13:38,430 candles low, this candle is high, we have that one single candle passing down like that, once that rebalances by going up here that swing high, from this
78 00:13:38,430 --> 00:13:47,220 high, this high in this high as a swing high right here, I immediately label that in my mind, not on my chart because I don't want anything distracting me.
79 00:13:48,090 --> 00:13:57,630 If I have these things written on my chart at the time, it's gonna be a distraction to me. But the way I'm internalizing it, you'll see what I mean, as
80 00:13:57,630 --> 00:14:08,880 I go through this lecture. Every rebalance of an old imbalance, that swing that's created at that moment, I immediately labeled that in my mind as an
81 00:14:08,880 --> 00:14:18,270 intermediate term high. Or in this case, as we came back down to fielding this by dropping down here. That's an intermediate term low. What does that mean?
82 00:14:18,270 --> 00:14:32,520 What's the significance of that? Typically, what you'll see is an intermediate term low has a higher short term low to the right of it in a higher short term
83 00:14:32,520 --> 00:14:45,000 load to the left of it. This inmate term low forms by rebalancing but it has a higher short term high here. But then the market trades over here off of this
84 00:14:45,000 --> 00:15:02,640 short term, low he rallies up, but it fails. It fails in here. We're going to anticipate that failure. Whereas if you're looking at this low high, higher low,
85 00:15:04,020 --> 00:15:19,410 failed, higher high, higher low. So what's forming here? A pennant or triangle pattern, right? How do you know which side is going to break out? That was one
86 00:15:19,410 --> 00:15:28,560 of the questions I had all the time as a developing student back in the 90s 1992 99. Three, I was buying every book and get my hands on. And I got the
87 00:15:28,560 --> 00:15:31,950 book, The John Murphy,
88 00:15:33,390 --> 00:15:41,700 technical analysis, the financial markets book, which is the retail traders Bible. Okay, that book is so useful in terms of just reading it knowing what not
89 00:15:41,700 --> 00:15:52,590 to do. Because that's what the 90% crowd follows when you look at price action still to this day, because it's always regurgitated in some way, shape or form.
90 00:15:53,130 --> 00:16:01,200 Someone's teaching that same idea uptrending trend lines, which are so subjective, how do you know what swing low to attach for trendline? There's lots
91 00:16:01,200 --> 00:16:11,970 of swing lows in here, how do you draw it? It's all subjective. So you have to have a way to reduce it down to I hate to say it like this, but it really is no
92 00:16:11,970 --> 00:16:21,990 better way to say it, but you have to break it down into a science. We don't do technical analysis, we do technical science, okay, you have to be able to relate
93 00:16:21,990 --> 00:16:33,240 to certain things way out and measure what these factors are within price action, which is not based on hypothetical guesswork, or some kind of a harmonic
94 00:16:33,240 --> 00:16:46,290 animal pattern, which to me makes no sense. You have to look at the relationship to price action, and the relationship of how it behaves. What is it indicating?
95 00:16:46,290 --> 00:16:57,330 What is it showing? The market has traded higher and then consolidated. We failed to go above this important high back here, that's a long term high, then
96 00:16:57,330 --> 00:17:06,990 we have in term high. Why? Why is this intermediate term high, because we have a short term high here, and a short term high here. So between two short term
97 00:17:06,990 --> 00:17:19,800 highs, the highest high between those, that's an area term high. But the main takeaway for your notes so far is anytime a imbalance, like this big candle up
98 00:17:19,830 --> 00:17:30,240 is rebounds, that becomes an enemy term low, just as well, on the opposite end, this down move here, that's a fair value gap. Soon as it rebalances there,
99 00:17:30,600 --> 00:17:42,570 that's what I classify as an intermediate term high. Now, here's where we take a huge step forward. Classically defined by Larry Williams, and you can see where
100 00:17:42,570 --> 00:17:53,730 I made a departure from his works, okay. It was very influential in the beginning of my development. And it was a point of argument internally with me
101 00:17:53,730 --> 00:18:07,590 when I was watching him teach it on his VHS course, the futures millionaires, confidential trading course. That idea of his approach to market structure, he
102 00:18:07,590 --> 00:18:16,170 teaches a little bit of it in this book. Okay, so it's long term secrets to short term trading by Larry Williams. There's not a lot of books, I have over
103 00:18:16,170 --> 00:18:29,040 2000 Some books. And I can tell you literally, there's a handful of books out of all my collection that are useful. And I can't bring myself to throw them away.
104 00:18:29,070 --> 00:18:37,980 Because number one, I paid a lot of money for them. And it's just nostalgia, me chasing all that stuff in books. And it's always the same stuff that never
105 00:18:37,980 --> 00:18:50,490 really works. The ideas that he teaches in this book here, they were taught in a early work by him in regards to market structure, how to internalize price
106 00:18:50,490 --> 00:19:01,290 structure, how to look at price, not just from a higher, high or low because that's too myopic. Okay. It's a pursuit, especially in this generation today.
107 00:19:01,500 --> 00:19:12,210 It's a pursuit of simplicity, for the sake of simplicity alone, not for the sake of getting to the truth or the heart of the matter. And that's what makes me a
108 00:19:12,570 --> 00:19:24,870 stumbling block for many of you that are younger, because you want right now instant gratification, you want instant reward for the menial time that you
109 00:19:24,870 --> 00:19:33,630 invest. When it's surprising, the learn that you're going to take a lot more time than you first thought it was gonna take the learn how to do this
110 00:19:33,630 --> 00:19:47,070 exceptionally well. But for an additional view, on how I built this understanding and price action, it originally came from his idea of market
111 00:19:47,070 --> 00:19:54,630 structure. But if you study what I'm going to show you in this video lecture here, my pay group has never seen this before. And you're seeing it for the
112 00:19:54,630 --> 00:20:05,640 first time. Okay, so when you hear people talk about Arca structure and Looking for a higher high, higher, high, higher high and having successive lower lows
113 00:20:05,640 --> 00:20:16,650 behind them, and then you had a failed higher high, and then it breaks the swing low right before that failed higher high, they look at that as a change in
114 00:20:16,650 --> 00:20:25,530 trend, not all the time. Many times, that's a good buying opportunity for me, because really, that's just coming back down to a deep discount. And I'm going
115 00:20:25,530 --> 00:20:26,220 to buy those
116 00:20:27,510 --> 00:20:39,420 and continue higher. So it's a little tricky, if you don't understand the higher timeframe, which is what these red levels are, that's higher timeframe, the
117 00:20:39,420 --> 00:20:53,370 heirarchy in parent to child price swings, okay? So that we the subordination that the smaller timeframe price swings, adhere to, from the higher Time Frame
118 00:20:53,670 --> 00:21:05,040 is directly linked to the order flow on this higher timeframe charts, synonymous one of my saying, the daily chart has the bulk of the volume that's coming into
119 00:21:05,040 --> 00:21:18,150 that marketplace. There isn't a lot of volume coming in on a one minute chart. That's not to change the importance or reduce the importance rather, of an of a
120 00:21:18,180 --> 00:21:28,920 one minute chart within the proper context and market structure that's underway. So you can use a one minute chart to navigate because as a smaller retail
121 00:21:28,920 --> 00:21:42,780 trader, which is who we all are. But we don't trade with retail logic, is it? There's a separation from what we're trying to do in price versus the collective
122 00:21:42,780 --> 00:21:49,650 out there that learned from books and things like that. Now, that may sound like an oxymoron, cuz I'm pointing to a book right here on the screen. But the idea
123 00:21:49,650 --> 00:22:01,530 is that he teaches early in this book about market structure, I think is the whole Well, the only thing I found useful in that book, I have a lot of respect
124 00:22:01,530 --> 00:22:11,400 for this man. But out of that entire book, his discussions about market structure, that's the only thing I find is useful from that book. So if you're
125 00:22:11,400 --> 00:22:24,750 reading anything else in that book, you know, great, if you'd like it. But my only addition to this for more research for more of a foundational idea where I
126 00:22:24,750 --> 00:22:37,560 got this from, you're gonna hear people say, he teaches Larry Williams market structure? No, I don't. The ideas that came early on in my learning came from
127 00:22:37,560 --> 00:22:47,430 this means and interpretation of market structure. But I want to take you into the chart now and show you what he's not teaching in that book, what he hasn't
128 00:22:47,430 --> 00:22:59,250 taught in any of his works. And it gets a little bit closer to the heart of the matter. And you'll find that it's really interesting. So if we have a imbalance
129 00:22:59,250 --> 00:23:10,890 that's rebalancing we have an enemy term high. Shouldn't an intermediate term high have a lower short term high to the right of it? Any lower short term high?
130 00:23:11,160 --> 00:23:24,270 To the left of it? Yes. Mr. Williams says so in his book, also, what I discovered in my own study, no one taught this to me. Okay, I kind of pioneered
131 00:23:24,270 --> 00:23:36,300 this idea. silanis Instagram guys out there saying they pioneered something in the last two years of trading. The idea of a intermediate term high, not being
132 00:23:36,300 --> 00:23:48,030 higher than the short term high to the left of it, or the short term high to the right of it. In other words, it's going lower. This an ideal scenario should be
133 00:23:48,030 --> 00:24:06,510 this high should be above both short term highs. But it's not. It's not. So what is it doing? It's only rebalancing this. And where is it likely to go? Well, if
134 00:24:06,510 --> 00:24:19,620 you're thinking in terms of a pennant or triangle pattern, it's indicating to me soon as candle starts to go up like this. This candle in this candle, why not
135 00:24:19,620 --> 00:24:29,190 this candle to? Well, this candle only has this low here. This candle is an up close. But this starts the last two up close candles right before this move
136 00:24:29,190 --> 00:24:42,600 down. This is important because we're going to look inside this shaded area and how we can use highly precise ideas within this order block. I'm anticipating
137 00:24:42,600 --> 00:24:53,820 this run up with these candles, forming an order block where everyone else is teaching the idea of the last up close candle before the down move. That is not
138 00:24:54,360 --> 00:25:01,920 my order block. That is not my order block. So you stop teaching that because it's not accurate. call it something else don't call it order block.
139 00:25:03,929 --> 00:25:13,499 This movement here, these two green candles that are going on, I'm watching these as they form live with the expectation because this imbalance has been
140 00:25:13,499 --> 00:25:25,349 rebalanced here, this swing highs and the intermediate term high, I do not. I do not expect this highly taken out. So I'm already forecasting in anticipating a
141 00:25:25,349 --> 00:25:36,539 failed price swing in here. Every time this green candles are forming, I'm looking at that as a bearish order block. So from the beginning of that candles
142 00:25:36,539 --> 00:25:51,119 low, I'm looking in time on lower timeframe charts lower than what? Well, this is a one hour chart. So what's the timeframe below that? I dropped to a 15
143 00:25:51,119 --> 00:26:02,669 minute timeframe. Now, before I get any further, just know that the range between this long term high and this long term low. That range is going to be
144 00:26:02,669 --> 00:26:15,179 used for targeting purposes. And I'll get into that in a moment. But these up close candles from the hourly perspective, that's the range for my hourly Porter
145 00:26:15,179 --> 00:26:35,279 block. Inside that range, I can be hunting fair value gaps. lightbulb, I don't need to see the market trade down below the last highest up close candle. I
146 00:26:35,279 --> 00:26:45,179 don't need to because I understand what I'm looking for inside market structure, actual market structure, not just higher, high higher low. I'm looking at the
147 00:26:45,179 --> 00:26:57,239 underpinnings of the marketplace and I'm examining what is it doing high to high Low to low within a higher Time Frame premise. Remember the premise was, we were
148 00:26:57,239 --> 00:27:07,199 going to go up to this upper level here rebalance, and then eventually trade lower down below sellside liquidity in this fractal I'm using this one here just
149 00:27:07,199 --> 00:27:20,189 to illustrate the idea silhouettes up here. It's going to make a short pattern, something bearish to get short on then work towards going down to that low. Now
150 00:27:20,189 --> 00:27:31,259 clearly you can see it here, though so nicely. But I want to take you into this price action right here. Before I zoom in, look closely, what do you see? Pause
151 00:27:31,259 --> 00:27:47,999 the video. And that balls in the video ICT and you can't make me Alright. Great in here, you can see a small little imbalance this one single candle like that
152 00:27:48,089 --> 00:27:58,919 right there. That's the same thing that was occurring in this move here on the hourly chart that gets rebalanced there. Here we have a smaller version of it.
153 00:27:59,249 --> 00:28:08,639 That is a fractal. That's something that repeats on a smaller or higher timeframe that's similar in its formation. It won't be identical. But it's
154 00:28:08,639 --> 00:28:19,649 closely related to the general idea. If it trades back to this candles, hi, don't worry, I'll zoom in in a moment. That's your entry right there. That's
155 00:28:19,709 --> 00:28:27,749 aggressive. And I don't have a problem being aggressive if I know what I'm looking for. But there's also an imbalance in here. And it rebalances that right
156 00:28:27,749 --> 00:28:39,119 there. See that. Now, once we establish the market structure on an hourly chart, I'm not going down into the lower timeframes below it and marking out all the
157 00:28:39,119 --> 00:28:47,729 swing highs and swing lows, either that that's overkill, I just need to know what I'm looking for on a timeframe I'm trading on. The logic is based on that
158 00:28:47,729 --> 00:28:59,729 daily chart that it's going up into this imbalance to go lower. The hourly chart frames my trade. It gives me what I'm looking for to start hunting entry
159 00:28:59,729 --> 00:29:09,749 techniques. Now the 15 minute timeframe, that's the bellwether, this is where it's going to give me the actual get in get out. But I might not like the risk
160 00:29:09,749 --> 00:29:22,559 parameters that's required on this timeframe. So I can go down into the lower timeframes. Should price go lower, and break lower. I'm looking at that short
161 00:29:22,559 --> 00:29:32,849 term low here. And that enemy term low there. If we have a short term low taken out, and an intermediate term loan taken out or just
162 00:29:34,350 --> 00:29:46,230 in return low taken out, then we can go back to the previous long term high, long term low. Now long term high long term low is generally going to be linked
163 00:29:46,230 --> 00:29:59,070 to a higher timeframe daily chart. That might be a price range. It might be a high to a short term low. In this case I'm framing the idea and logic around
164 00:29:59,070 --> 00:30:10,590 that fair value gap. I outlined in front of all of you saying is likely go up their rebalancing, and go lower, and take out the old daily low. There's lots of
165 00:30:10,590 --> 00:30:20,670 ways you can frame your trade. But you have to have something directly linked to that daily chart because the daily chart, that's exactly what institutions are
166 00:30:20,670 --> 00:30:29,490 working off of. That's exactly what banks are working off of. That's where the money is. That's where your bias is going to be determined. That's going to be
167 00:30:29,820 --> 00:30:40,020 what makes or breaks your Trend continuation, that daily chart. So the majority of your time and study should be one determining where that daily charts going
168 00:30:40,080 --> 00:30:51,390 over the next day or two or a week. But you try not to forecast longer than a week. Not that you can't, I'm not suggesting that anyone can't do that. I'm just
169 00:30:51,390 --> 00:31:00,720 saying if, as a developing student, you want to keep your perspective limited to a five day time horizon. And don't be upset if you don't have the entire weekly
170 00:31:00,720 --> 00:31:09,690 range forecast correctly. That's not important. Right now. You're growing, you're trying to learn how to do this. And it's highly technical. No one gets it
171 00:31:09,690 --> 00:31:23,730 overnight. It took me six years. So but it pays off if you stick with it. So if we have a break below and in return low, then we have what a significant break
172 00:31:23,760 --> 00:31:31,920 in market structure. This is something that's more significant is simply then going into a chart saying okay, well, I took out a short term loan, there it is.
173 00:31:32,520 --> 00:31:47,490 See how much more detailed this is. What this tells me is, then I could start using this range high and low and start getting projections them. I can get a
174 00:31:47,490 --> 00:32:00,810 measurement of measuring this high to this low and start replicating that going down. And it'll give me price targets. They're generic price targets. If you
175 00:32:00,810 --> 00:32:11,730 don't want to use that targeting method, this long term low to intermediate term high. If price breaks below here, as it does here, you can simply take your
176 00:32:11,730 --> 00:32:22,170 Fibonacci anchor to the highest high down to the lowest low. And this is what you would get here. Why am I using that? Why am I not using this here to here?
177 00:32:22,410 --> 00:32:33,780 Because this returned back up. This is where all of this move starts right there. This is just the beginning of the framework. This is where the swing
178 00:32:33,780 --> 00:32:45,090 begins on the decline. Follow what I'm saying? I'll say it again. This high in this low that's your framework. The retracement that fails, that starts to
179 00:32:45,090 --> 00:32:55,410 decline begins here at the intermediate term high. So if you anchor your fib to enter a term high down to that low, which is a long term low, the projection is
180 00:32:56,070 --> 00:33:05,010 negative one and a half standard deviation. And there's your low. How much lower than this? Can it go? That's one way of determining. Now I know what you're
181 00:33:05,010 --> 00:33:15,090 asking, what is your fib, settings ICT? There's my fib settings. Okay. I don't talk about everything, because I don't need all the lines. But I'm looking at
182 00:33:15,090 --> 00:33:23,190 measurements like this, with logic behind it. It's not just me randomly going in there. Because I get a lot of quite when I was on baby pips, I got lots of
183 00:33:23,190 --> 00:33:29,550 emails all the time and people would post in the forum. Why are you anchoring your fib to that swing high, and that's in that swing high and not this swing
184 00:33:29,550 --> 00:33:39,210 high? This is what I never taught. This is what I'm showing you today. This is advanced market structure. This is not something you can find in books. Mr.
185 00:33:39,210 --> 00:33:47,970 Williams, I'm sure it doesn't even know it like this. He's rather simplistic in the way he does things. That's the only thing I've really gleaned from him. He's
186 00:33:50,940 --> 00:34:00,450 He's a legend. And don't get me wrong. But he does things rather simplistic, but because of my background is computer programming, and computer science and I
187 00:34:00,450 --> 00:34:10,020 have obsessive compulsive disorder. I need to know why things do what they do. And I need to know everything. Now, I don't know everything. But my pursuit of
188 00:34:10,020 --> 00:34:19,350 knowing everything led me to look at markets like this and internalize how, what the algorithms are dealing, because there has to be a rhyme and reason right?
189 00:34:20,130 --> 00:34:29,850 Like to suggest the idea that these markets are operating under an algorithm. And they're going up and down based on an AI. Artificial Intelligence is
190 00:34:29,850 --> 00:34:40,260 controlling this. It's not your buying and selling pressure. I've said this many times before. But if that is true, and the suspend your disbelief, if you don't
191 00:34:40,260 --> 00:34:50,610 believe there's an algorithm just for the sake of this conversation, let's just say for a moment that you do subscribe to the idea. If there's an algorithm that
192 00:34:50,610 --> 00:35:06,600 means it must follow some form of logic and how does it reference? How far to go up and how far to go down? It cannot see your stop. It doesn't see Michael star.
193 00:35:07,080 --> 00:35:25,260 It doesn't see Renee stop. It doesn't see one stop. It doesn't see Brian. Larry. That's outside of its capability. But it knows where people will have their
194 00:35:25,260 --> 00:35:36,870 thoughts based on these ideas. Short term high short term, low, intermediate term high in return low, long term, low, long term high. And where the
195 00:35:36,870 --> 00:35:46,980 imbalances are? Now already know right now, at this moment right now, your heads are spinning. You're probably sitting here looking at MIT, this is crazy. How
196 00:35:46,980 --> 00:35:58,050 did he come up with this? And how the hell am I going to use it? Exactly. You're going to take time learning this line upon line, precept upon precept here
197 00:35:58,050 --> 00:36:10,980 little, their little, it takes time to do this, okay. But I got requested to teach market structure. And this is my interpretation of market structure,
198 00:36:10,980 --> 00:36:21,240 because I'm leaning on algorithmic principles that are in the marketplace, that can't be taught to you. But I'm creating a language so that way, you can see it
199 00:36:21,240 --> 00:36:32,670 visually in your chart. And you can measure in reference certain things, not exactly like the algorithm does, but very, very close to what it's doing. Which,
200 00:36:33,390 --> 00:36:42,300 in my mind, doesn't really step on anybody's toes now does it. So if we're looking at this little shade of Erin Hallam to zoom in now and get down to the
201 00:36:42,300 --> 00:36:52,440 heart of this teaching, is the same 15 minute time frame to zoom in a little bit more. This is an aggressive entry for going short. Now, that hourly chart was
202 00:36:52,440 --> 00:37:07,860 showing those two candles going up in the 15 minute time frame, it's obviously more candles. So in this upclose candle series of 12345 candles. In that range,
203 00:37:07,890 --> 00:37:23,100 if I get a failure, you get formed with a breakdown like this, notice, I don't need a swing low broken. That is that on the model I'm teaching you, you have to
204 00:37:23,100 --> 00:37:33,330 look for what the short term low been broken at your market structure shift, then you see price go up into that imbalance and then you can go short, or vice
205 00:37:33,330 --> 00:37:43,950 versa when you're going bullish. If you understand market structure with this perception, looking at it from a higher time frame, in anticipating a breakdown,
206 00:37:44,100 --> 00:37:55,440 but then starting to classify each imbalance and swing high and swing low. intermediate term highs and lows are formed at the rebalancing of an imbalance.
207 00:37:56,340 --> 00:38:06,720 Everything he said in the video. Okay, I'm just reiterating. If the intermediate term high is not higher than to short term highs, that is telling you that the
208 00:38:06,720 --> 00:38:23,460 market is very weak. And the algorithm is tipping its hand to those people that are looking at it like this. Who would be looking at like this Smart Money
209 00:38:23,520 --> 00:38:33,660 traders, someone that's not looking at a chart with harmonic ideas. Nothing Elliott Wave didn't even look at Support Resistance. That's not a factor. That's
210 00:38:33,660 --> 00:38:42,930 not a factor at all. When bank traders sit down, they're not looking at Support Resistance, they care less about a trendline. They don't care about moving
211 00:38:42,930 --> 00:38:48,720 averages crossing over. None of that stuff. They're looking at
212 00:38:50,160 --> 00:39:05,160 imbalance rebalance and liquidity. That is it. That's it. That's all they're doing. Now framing that within the context of forex, they will be utilizing the
213 00:39:05,520 --> 00:39:14,370 fundamental idea of interest rate differentials, which I'll talk a little bit about not in this lesson. But I'd said we go into Forex, but right now, we're
214 00:39:14,370 --> 00:39:27,240 teaching price through this medium and index futures. But this stuff works in forex, period. Okay. There's no reason that question whether if it's just only
215 00:39:27,240 --> 00:39:40,530 going to work in this, it works in all markets. This is your aggressive entry. You don't need a swing low been broken. Because you have the idea based on
216 00:39:40,530 --> 00:39:49,110 market structure suggesting that this is extremely weak. If it's exceedingly weak, that means the next short term high. I don't know it's gonna be short term
217 00:39:49,110 --> 00:40:00,660 planning. I don't know because I'm studying the close candles because that's going to be an order block later on. Now everybody else knows had a look at
218 00:40:00,660 --> 00:40:10,260 these candles after it goes below it and comes back up and bumps the bottom of that right there. So the bottom of that rectangle. That's the classic ICT
219 00:40:10,530 --> 00:40:22,380 bearish order block. The advanced interpretation of an order block would be using market structure like this, which is unconventional. But you start seeing
220 00:40:22,380 --> 00:40:32,640 the imbalances inside the order block when you're already expecting it to sell off. See this intermediate term high already know that this rebalance here
221 00:40:33,150 --> 00:40:42,270 classifies this in my mind is an intermediate term high. That means it should not trade above that high. Just like this short term high and this short term
222 00:40:42,270 --> 00:40:53,430 high did not trade above this and return high. Why is this enemy term high when it didn't even rebalance anything? Didn't think I'll get to that question digit,
223 00:40:54,150 --> 00:41:07,620 he's reading my mind. Here's a long term high. Here's a swing high over here and swing over here. See that long term high, right? It'll be term high, short term
224 00:41:07,620 --> 00:41:14,340 high, short term high. Or if you want to use this I'm using this one not classifying this one because this is energetic, it moves lower. You could have
225 00:41:14,340 --> 00:41:24,330 easily had a short term high marker there. But I'm using this one because it has that run lower to rebalance. The image from high has a lower short term high to
226 00:41:24,330 --> 00:41:35,880 the left of it and a lower short term high to the right of it. So intermediate term highs, there's two classifications is a short term high that has a lower
227 00:41:35,880 --> 00:41:46,680 short term Hinds Aletheia and a lower short term high to the right of it. Or, and this is the main one here. It trades back up to rebalance an imbalance that
228 00:41:46,710 --> 00:41:59,250 immediately becomes an area turn hot. Now, the usefulness of that is, if we're bearish and it rebounds is like this. The next short term high should be lower
229 00:41:59,640 --> 00:42:10,380 than that in return high. If it trades higher than that, then your trade ideas probably flawed. Don't force that trade. Again, wait for market structure to get
230 00:42:10,380 --> 00:42:21,120 back in sync with what you're expecting something bearish. That's how you keep from blowing your account or forcing your will in the marketplace. Now let's go
231 00:42:21,120 --> 00:42:30,060 back into the boardwalk. Inside these candles as is going up, I'm looking at lower timeframe charts and this is a 15 minute timeframe. We see it break down.
232 00:42:30,360 --> 00:42:43,560 It doesn't take any short term low out but it's inside these up close candles which is an hourly order block of two candles. Each. The imbalance trades up
233 00:42:43,560 --> 00:42:55,620 into that's your Aggressive Sell. Your stock could be worried about the High Classic low risk, high confirmation short entry is the classic return back to an
234 00:42:55,620 --> 00:43:06,900 order block after trade down below it. Usually little gap here, trade into it. There's your short where's your stop? Above this candle is high.
235 00:43:10,320 --> 00:43:29,220 There you go. Now you can go down into the charts deeper with your 54321. Narrowing down to a smallest timeframe. You can see that the last two candles
236 00:43:29,220 --> 00:43:44,610 here. Wait for the turn inside the order block. The order block is the shaded pink box that these last two candles here with the gap. That low is exactly to
237 00:43:44,610 --> 00:43:56,100 the quarter point. Is that candles high right there. Don't take my word for it go into your charts. And you'll see that is exactly the perfect delivery to that
238 00:43:56,100 --> 00:44:07,200 candles low. What so why am I pointing that candle? Because the order block is one consecutive series of up close candles. It's not the last candle before the
239 00:44:07,200 --> 00:44:20,640 down move. You can tell where these folks learned what lessons are taught from and where the parroted from. But border block theory is much more than just
240 00:44:20,640 --> 00:44:32,700 simply the last closed candle for down move or the last down closed candle before the ultimate. That's not it. This is it. You have the close candles
241 00:44:32,700 --> 00:44:40,890 together here with the unbalance inside of a larger quarter block within a bearish market structure because we have an intermediate term high here in this
242 00:44:40,890 --> 00:44:51,000 run up is going to fail to go back above this high. Now I know some of you're like this is too much that there's no How am I going to go on to the chart and
243 00:44:51,000 --> 00:44:59,760 be able to do this. You're not going to right away. But you need to go back to your data and your charts and start breaking them down and classifying them like
244 00:44:59,760 --> 00:45:10,200 this You had the benefit of hindsight. That's how I began to trust it. Because I would go through old data and start breaking them down and looking for these
245 00:45:10,200 --> 00:45:20,670 things right here. That's how I bridged what I learned about how the algorithm prices and books price. And then I made a language within price charts, that
246 00:45:20,670 --> 00:45:33,450 communicates very closely what it's doing. This is the language that created for all of you to understand what it is I'm trying to interpret to you that have
247 00:45:33,450 --> 00:45:48,270 never seen this before. The imbalance here, it goes over a little bit, that's okay. But inside this range in here, more specifically, the order block, the
248 00:45:48,270 --> 00:45:57,630 hourly right here, that's where your fill would be or aiming with your limit order. And the heat on the trade would be on this candles movement there. Which
249 00:45:57,630 --> 00:46:12,000 is talk will be love here. But you're aiming for a very large downside objective. So the risk from entering here at the bottom of the hourly bearish
250 00:46:12,000 --> 00:46:22,200 order block, which is again represented on the bottom of that rectangle here. You're entering there, the heat or the drawdown in the trade is limited to just
251 00:46:22,200 --> 00:46:36,900 that candle. But your stop has to be here, and you're expanding lower for a target that's many times over what your risk is. Dropping down to a four minute
252 00:46:36,900 --> 00:46:45,930 chart. Here's that same waterblock from the five minute perspective, it's a little skewed. Now because we're looking at four minutes, each Kim's four
253 00:46:45,930 --> 00:46:53,640 minutes in duration. market trades up into that hits it perfectly, not this linked to anything on the four minute chart, but it's linked against that five
254 00:46:53,640 --> 00:47:09,900 minute chart. It's right there beautifully, trades lower, comes right back up trades into the top end that fear of a gap on the higher timeframe before we
255 00:47:09,900 --> 00:47:21,030 started dropping down, we have a little bit of movement above it. And that's okay. Because this market is very volatile right now, you can't demand the
256 00:47:21,030 --> 00:47:28,530 markets to always deliver with this level of precision. Sometimes you get this little coloring outside the lines and that's okay. That's a matter of experience
257 00:47:29,040 --> 00:47:41,760 and time studying it and doing it you anticipate a certain measure of imperfection and still submitting yourself to the idea that just because it went
258 00:47:41,760 --> 00:47:51,000 above that level doesn't mean he broke it, and he's gonna keep going higher, it's likely to do that. And if it does, don't freak out. Then the market trades
259 00:47:51,000 --> 00:48:01,890 lower and reached those targets. Now, what I want you to think about is when you see these patterns for entry, that's an I taught you how to look at market
260 00:48:01,890 --> 00:48:03,420 structure from an advanced perspective.
261 00:48:04,830 --> 00:48:15,870 I already know some of you are going to be very confused by this lesson. And I understand your confusion. But that confusion is reduced by you going in and
262 00:48:15,870 --> 00:48:32,730 looking at price data and start studying and looking at it. The idea is this when you see an imbalance get rebalanced, the high formed as it rebalances that
263 00:48:32,730 --> 00:48:42,810 high should not be violated by price going higher than that if you're bearish if you blend that with institutional order flow, what is institutional order flow
264 00:48:43,710 --> 00:48:58,110 when you're bearish? All of your upclose candles should keep price from going higher than them what does that mean? They have an imbalance here market trades
265 00:48:58,110 --> 00:49:05,580 up into the bourse candles that are on the five minute chart we're in a four minute chart that's that red level here and we go back up to say Do you know
266 00:49:07,080 --> 00:49:14,940 that's this one here? This is a down close candle right here these are the last two close candles before the displacement here and imbalance market trades back
267 00:49:14,940 --> 00:49:24,360 up into that right there there's your bearish order block yes aggressive but if you know you're looking for that's very very fun to do that on the four minute
268 00:49:24,360 --> 00:49:35,940 chart there's that same return back to that five minute bearish order block. Watch what happens. market breaks lower. So we have a closed candle and up close
269 00:49:35,940 --> 00:49:45,030 candles. The market trades higher Yes, but does it overtake this up close candle? No just trades back up into it a little bit but doesn't go above it.
270 00:49:46,230 --> 00:49:55,050 Wow. That's important. Because if it doesn't overtake these up close candles here or here, it doesn't even need to get to these because it hasn't even
271 00:49:55,080 --> 00:50:09,240 overcome this one. So it acts as real resistance. That's institutional order flow. Your market when it breaks, again from the consolidation in here, all of
272 00:50:09,240 --> 00:50:19,440 these up close candles never get reached into again here at all. But notice we've got over here, we have up close candles, the market leaves it, then it
273 00:50:19,440 --> 00:50:32,190 comes right back up. Does it overtake these upclose candles? No. So it's going to remain heavy. So in short, I've taught you tonight to look at the markets
274 00:50:32,220 --> 00:50:46,170 from a market structure perspective, by breaking down the price swings, labeling them, specifically, an imbalance that's rebalanced. That intermediate term high
275 00:50:46,170 --> 00:50:59,850 or low, should not be violated. That's a key high or a key low. That sets the stage for a market move that should unfold and deliver to a higher timeframe
276 00:50:59,850 --> 00:51:08,430 objective. In this case, as we outline the beginning, I showed you last week and the week before that, that we were looking for weakness and NASDAQ to take out
277 00:51:08,430 --> 00:51:20,700 its daily low. If you combine that logic with market structure, and the imbalance rebounds becomes intermediate term highs and lows, those key highs and
278 00:51:20,700 --> 00:51:29,310 lows with them not being violated. If they are violated that means your ideas wrong. And you cancel the idea and you don't try to go in and force it again and
279 00:51:29,310 --> 00:51:40,470 overtrading and blow your account. While the market is moving in your favor, you're going to continue to trust that move and hold on to your trade. Because
280 00:51:40,470 --> 00:51:53,850 if you're bearish up close candles should keep price below it. For them, if it's multiple close candles, their speed bumps, they may come back up and touch them
281 00:51:54,060 --> 00:52:05,640 and act as a what bearish order block, but you do not want to see them trading above if you're bearish. And vice versa. If you're bullish when prices moving
282 00:52:05,640 --> 00:52:14,550 higher, generally the candles will be predominantly green. In my case, because I'm looking green candles when it's going higher. Whatever your candle color is
283 00:52:14,550 --> 00:52:26,190 on your platform. Predominantly, there's going to be more up close candles when it's bullish. But down close candles should support price. If it trades back
284 00:52:26,190 --> 00:52:37,680 down to them, it's going to act as a support structure for an order block. So I've given you two main components to market structure and institutional order
285 00:52:37,680 --> 00:52:48,150 flow. How to know when the move is still good, and not be afraid? And how do you know when the move is likely to be dynamic? And how do you know when the idea is
286 00:52:48,150 --> 00:52:58,350 probably flawed in your interpretation or your analysis is wrong. If that intermediate term high or low is broken, that's your trade idea becomes
287 00:52:58,740 --> 00:52:59,520 possible.
288 00:53:01,110 --> 00:53:09,990 If that in return high is broken, then you're bearish, then you got to move to the sidelines and don't go in again. Wait for more setups in the future. They
289 00:53:09,990 --> 00:53:19,380 may be in the same trading session or maybe in the same trading day. Or it may require you to trade in the following week. You can't force it. I taught you
290 00:53:19,650 --> 00:53:28,530 institutional order flow, which is again, I've already mentioned this in previous lessons where we're bullish and we're expecting a price swing higher.
291 00:53:29,400 --> 00:53:37,620 Generally there is not a lot of down close candles in that price swing higher. But those down close candles should support price should it trade back down into
292 00:53:37,620 --> 00:53:50,760 them and not see them over lapped and always going down below it. If it does, it's only permissible if there's a short term low in close proximity to it. And
293 00:53:50,760 --> 00:53:59,550 it's then looked like this go down and take out some sell stops that it's bullish, and then re accumulate and go higher. If there is no swing low, there
294 00:53:59,550 --> 00:54:09,540 would be no swing low with sellside below it. So there's nothing to concern yourself with. Just look for down close candles support price higher. Similar
295 00:54:09,570 --> 00:54:23,790 price swings that are bullish down close candles are your support. In price swings that are bearish. Up close candles are your resistance. Now, if you blend
296 00:54:23,790 --> 00:54:39,780 these ideas together, you get a perspective on price that cannot be gleaned from other teachers, educators, traders, authors, gurus or whatever. But these are my
297 00:54:39,780 --> 00:54:52,710 responses to folks that asked me how do I know what swing high and what swing low to use? As you can see, it's not a question and I can go in and say in one
298 00:54:52,800 --> 00:55:05,160 simple statement, this is what I'm doing. It takes deeper thought it takes Study, and has the require supportive lessons that you're still going to be
299 00:55:05,160 --> 00:55:11,730 needing for the majority of you that are sitting here and listening to me, you're saying, okay, I can see what you're saying, I can see it, but there's no
300 00:55:11,730 --> 00:55:21,060 way I would have came to that conclusion on my own, nobody would expect you to, you're too new. You haven't been doing enough. In frankly, I've never taught
301 00:55:21,060 --> 00:55:35,010 this before. This is what I've kept close to my best. But I want to give, and I want to share. But you're not going to understand this in one lesson. But
302 00:55:35,010 --> 00:55:44,760 because I am trading, and I'm sharing, and I'm teaching, I will show you more examples. That way, you can see the logic behind it. But I want you to go back
303 00:55:44,760 --> 00:55:54,780 to your charts and look at every time the market rebalances classify that as an in return high, or in return low, if it's you, with a rebalance that's been
304 00:55:54,840 --> 00:56:07,950 moving hiring went down to rebalance that. And then watch how prices stay away from violating it. And if you can frame a context around a price swing that's
305 00:56:08,010 --> 00:56:22,110 linked to a higher Time Frame chart like the daily, then you have a wonderful model that has higher timeframe, order flow behind it, that is paramount for
306 00:56:22,110 --> 00:56:33,300 your trade to work. If you can't see it working or following suit, to what the daily charts likely to do. Or in layman's terms, if you're trading against what
307 00:56:33,300 --> 00:56:44,850 that daily timeframe or daily chart is likely to be doing. You are absolutely asking for failure. You're asking for it, you're begging for it. That's not to
308 00:56:44,850 --> 00:56:56,910 say that you can't go long when the daily charts going lower. But why would you want to? Why would you want to swim against the tide? Why would you want to be
309 00:56:57,300 --> 00:57:12,150 the salmon, the salmon that fights its way up against the current just to get to the top of the river, spawns and then dice you got there but failed me and you
310 00:57:12,150 --> 00:57:23,100 want to be working with the tide, you want to be moving with the ebb and flow of these markets on a higher timeframe. Because that daily chart, if you understand
311 00:57:23,100 --> 00:57:25,500 that daily chart, let's go back up to it.
312 00:57:31,110 --> 00:57:44,820 If you're doing all of your analysis, and linking your trade ideas, based on the logic behind this timeframe here, you're going to avoid a lot of losing trades.
313 00:57:44,940 --> 00:57:53,610 Now you're gonna lose, you're gonna have losing trades, I have losing trades. But you're going to avoid the silly mistakes that the majority of retail traders
314 00:57:53,640 --> 00:58:05,640 make. You're not going to see why on a 15 minute time frame or five minute chart, why it's not turning around and reversing intraday, when it feels like it
315 00:58:05,640 --> 00:58:14,820 might be doing so because you'll have these small little new, quick, dynamic little pops in the direction it's countered with the daily chart suggesting
316 00:58:15,840 --> 00:58:23,970 those are just little traps, or little moves that get people caught up in Oh, it's gonna reverse and we're gonna chase that. And then it just creates another
317 00:58:24,180 --> 00:58:32,490 selling opportunity when the daily chart is likely to continue going lower. So you have to submit yourself to what this daily chart is doing. What's it
318 00:58:32,490 --> 00:58:47,400 reaching for? And when it reaches it, stop. Get a lay of the land again, check your bearings, which is what I'm going to close this video with now. We were up
319 00:58:47,400 --> 00:58:57,900 here. We rebalanced. I said all of this here is just normal. For us to anticipate a run down below here. This is just rebalancing for another leg lower
320 00:58:57,900 --> 00:59:10,620 to go down here. So we have had that in price it's delivered. But now we're back above that low. So what does that mean for us? Well, on the daily chart, it's
321 00:59:10,620 --> 00:59:24,510 been bearish. But we're back above this, although that is in my mind. Do nothing. We're neutral right now. Why? Why would you be neutral? Can you still
322 00:59:24,510 --> 00:59:37,860 be bearish? Yes. Can you be bullish? If you want to go against the trend of the daily timeframe? Well, it just brings with it a greater measure of risk. Now
323 00:59:37,890 --> 00:59:47,040 there's going to be times where you can go back in the charts and say but yeah, look at this time. Anybody can do that. I'm looking at the hard right edge right
324 00:59:47,040 --> 00:59:59,130 now. In my paid mentorship group is hearing this video just like you are. I am neutral right now. I am not taking any trades. There's a lot of things going on
325 00:59:59,340 --> 01:00:10,710 globally. There's a lot of confusion right now. Money is running scared in the marketplace. And I don't see where we're going next with a great deal of
326 01:00:10,710 --> 01:00:24,990 certainty. So what did I just say to you publicly? I don't know. What do you see? I see this and he don't know something. He doesn't know what the markets
327 01:00:24,990 --> 01:00:35,160 gonna do. Right. Right now? I don't know. So, if I don't know, and I can't classify based on things I'm looking for in price, yes, it could possibly go a
328 01:00:35,160 --> 01:00:42,150 bit higher. It could be the low, there could be some kind of reversal, they could you stop doing what you're doing over there in Europe and in Ukraine, and
329 01:00:42,150 --> 01:00:55,950 everything becomes happy and nothing happens. They had again for a couple months, and the markets go higher. I don't see that. Right now. I don't know if
330 01:00:55,950 --> 01:01:10,350 it's going to continue going lower. where it's at right now. Neutral, because I can't justify it. One sidedness case is how to teach money on pay group. The
331 01:01:10,350 --> 01:01:22,290 things I teach them, if you can't go into your charts, and line up an idea that's bullish, and have no way to frame it on a bearish stance. In other words,
332 01:01:23,580 --> 01:01:34,470 if you can very easily communicate in your analysis that it's likely to go higher, but it's a real hard stretch to sell it for a bearish idea. That's high
333 01:01:34,470 --> 01:01:44,010 probability. If you can frame it bearish, but have a hard time defining it in a bullish perspective. That's high probability.
334 01:01:45,990 --> 01:01:55,650 Now, how many trades have you taken in your time as a trader, where it could go either way, but what the hell I got time on the front of the charts, let me just
335 01:01:55,650 --> 01:02:04,800 get here and see what happens and you enter the market, then you lose. What happens after that, you have a lot of regret. And you know, what you're
336 01:02:04,800 --> 01:02:14,280 thinking, I don't even know why I did get I was done, what I get into the marketplace. Everyone's done that. Everyone has done that. And I have blown
337 01:02:14,280 --> 01:02:27,060 accounts, doing that. 1990s, I was reckless, did whatever I wanted to do. And none of it was really hinged on sound logic, it was me discovering risk, because
338 01:02:27,060 --> 01:02:39,900 I didn't respect it when I first went into it. But I found that real hard that it hurts, and you don't want to go through that. So this brings this lesson to
339 01:02:40,470 --> 01:02:53,790 conclusion tonight. And I am absolutely certain that you have a litany of questions and concerns and confusions. All of those things get answered over
340 01:02:53,790 --> 01:03:05,670 time, spending time with me looking at examples, and you'll see it over time. It cannot be understood in one lesson. It absolutely cannot happen. And I know some
341 01:03:05,670 --> 01:03:14,490 of you young guys are gonna want to post in the comment section, I understand exactly what you said, I've seen this 15 times before. Don't I don't look at
342 01:03:14,490 --> 01:03:26,190 those messages and think to myself, wow. And I'm not gonna let that that should be posted to the video comment section. I'm not looking for messages that fluff
343 01:03:26,190 --> 01:03:36,510 me up. I'm just looking for ones that I like. Okay. And if it's something that I think that would be beneficial to the community, I'll use it. But if it's
344 01:03:36,510 --> 01:03:44,820 something I just thought it was funny or useful. That's the one I like that about the comments. It doesn't mean that all the comments that were not
345 01:03:44,820 --> 01:03:57,390 selected, were useless or less important, because some of them are questions. I'm using your questions in the way I'm teaching. So that way, I'm covering a
346 01:03:57,390 --> 01:04:04,260 lot of the bases that you guys are saying, I'm stuck with understanding this, but just know that there's a lot of the questions that you're asking that will
347 01:04:04,260 --> 01:04:11,850 be answered in a normal progression through the lessons I have planned for you. It may not feel like it, it may feel like you're being ignored or that I don't
348 01:04:11,850 --> 01:04:20,040 care about your question, or I'm somehow avoiding it because I don't have an answer. I have answers. Okay, I have answers to the questions. You have not had
349 01:04:20,070 --> 01:04:28,380 a rise in your thoughts yet. But you just got to relax and go through the natural progression of it. This is very technical stuff, folks. Very, very
350 01:04:28,380 --> 01:04:38,250 technical. You don't need to be this technical. But I was asked to teach market structure. And there's a lot of folks out there especially on YouTube that
351 01:04:38,250 --> 01:04:45,900 pretend to know about market structure, but they have no real idea what you're doing. The only thing they're explaining is what's already happened in the price
352 01:04:45,900 --> 01:04:54,930 charts. I'm showing you something in greater detail what I outlined to every one of you in this YouTube channel. Everyone in this YouTube channel watched me
353 01:04:54,960 --> 01:05:10,950 outline this market right here, and it moved 14 1500 points based on that logic, that's a lot. That's a very significant price move, and it behaved exactly how
354 01:05:10,950 --> 01:05:24,000 I'm teaching it to you. That should be reassuring, number one, but also it should be intriguing. Because if I'm able to sit down with you, and this was not
355 01:05:24,000 --> 01:05:32,940 a cheat, how many times have I put out suggestions? Either in the comment section of my community tab? For video, how many times have I said something,
356 01:05:33,600 --> 01:05:44,220 and it didn't come to pass? They're not cherry picked. I'm showing you things that are based on the logic that I'm teaching you. Okay? So it removes the
357 01:05:44,220 --> 01:05:54,180 necessity for blind faith. Okay, don't believe me, because I'm ICT believe what I'm teaching you. And that you're seeing in the charts yourself when you're back
358 01:05:54,180 --> 01:06:04,230 testing and watching it live. That's where the proof is discovered. Because I can do this every single day. And there's still going to be people there's going
359 01:06:04,230 --> 01:06:11,670 to doubt. And the folks that are convinced already, they don't need any more assurance. They just want to learn. And that's what I'm doing. I'm teaching you,
360 01:06:12,030 --> 01:06:23,670 I'm teaching you exactly what's going on, on that hard right edge of that chart. And right now, at this moment, I'm teaching you a greater lesson, when not to do
361 01:06:23,670 --> 01:06:24,240 something.
362 01:06:26,280 --> 01:06:39,150 You may have an account open, you may have time to be in front of your charts, you may have an idea, some kind of inkling that you think the markets going to
363 01:06:39,150 --> 01:06:51,120 do this or that. I'm telling you personally, I'm not touching this at all. I'm not trading Forex. I'm not trading futures. I'm not trading crypto, I've never
364 01:06:51,120 --> 01:07:03,510 traded crypto, and I'm not touching stocks. I'm not touching bonds. I'm not trading anything right now. I'm gonna let the rest of February transpire without
365 01:07:03,510 --> 01:07:13,980 me engaging. It's done exactly what I outlined for all of you. It was a nice price move. It was logical. It was precise, it delivered exactly as outlined
366 01:07:14,700 --> 01:07:29,310 beforehand. And tonight, I taught you the internals behind that in a very structured, detailed way. Your infancy as a student under me, is going to be an
367 01:07:29,310 --> 01:07:37,980 impediment to you understanding everything, and even my paid mentorship group are probably scratching their heads tonight, too, because there's gaps in their
368 01:07:37,980 --> 01:07:47,250 understanding because I just literally introduced this for the first time they have they don't have this in any of the lessons they had. None of them no one
369 01:07:47,250 --> 01:08:00,000 has seen me teach this is the first time I'm unveiling what it is when I look at market structure. What is it I'm doing? How am I framing things? I'm using a top
370 01:08:00,000 --> 01:08:12,120 down approach from the daily on the lower timeframes. But the timeframe I'm framing the setup one, which was the hourly chart, using higher timeframe logic
371 01:08:13,170 --> 01:08:22,860 and the order flow, no words. I'm bearish because that daily chart suggests that it's going to go down below here. When it was up here. This went down to quick
372 01:08:23,910 --> 01:08:36,450 in what is the market even create a fair bet you got? Why does the market go up here? Because this market dropped, one sided for here. It just went down. There
373 01:08:36,450 --> 01:08:47,670 wasn't a lot of given take back and forth. It's one candle that went down like that. Because it's one candle, it's one day one interval is going to have the
374 01:08:47,670 --> 01:09:00,000 likelihood not it must always not that it's going to do it immediately. But the expectation is likely to go back up into this area here with an up candle
375 01:09:00,870 --> 01:09:11,760 balancing out the movement lower is going to go back up to offer buyers an opportunity to buy at those prices. It matters not if those buyers are correct
376 01:09:11,790 --> 01:09:25,560 in their assumptions about this marketplace. The algorithm is allowing efficiency for price delivery. In layman's terms, it means a went down too
377 01:09:25,560 --> 01:09:36,990 quick. It wasn't offering enough time for anyone that wants to buy it. So it goes back up. Once it does that it rebalances right there spends a little bit of
378 01:09:36,990 --> 01:09:50,040 time and then displacement again, and then right to where we were outlining. The question I want to leave you with is this. Why does it respect the levels I'm
379 01:09:50,040 --> 01:10:04,470 teaching here and the logic from imbalance to liquidity? If everything is based on trend lines moving versus harmonic patterns. Fibonacci this Elliott Wave that
380 01:10:06,990 --> 01:10:18,750 if those things were real, and they had factors that really made price go higher or lower. Answer this for me this is the riddle you need to figure out. Okay?
381 01:10:20,790 --> 01:10:32,040 How does the market know? Which discipline? It's going to follow? Any given day? Is it going to follow harmonic animal patterns? Or is it going to follow Elliott
382 01:10:32,040 --> 01:10:45,030 Wave? Or is it going to use supply and demand? Or is it going to use volume profile? It's going to use Wycoff. He's going to use the patterns that's found
383 01:10:45,030 --> 01:11:04,470 on range bars. Is it going to use what's in Ichimoku? You get an appointment. All those disciplines do not agree. All of them. They're at odds with one
384 01:11:04,470 --> 01:11:18,210 another. One disciplines gonna say wait for this one disciplines gonna say wait for that. So how is it the market determines which discipline it's going to use
385 01:11:18,210 --> 01:11:27,540 for that given time period or that day. That's nonsense, that you being religious.
386 01:11:29,460 --> 01:11:44,940 Any of you to subscribe to those ideas, and I did. You are under a faith based premise that what you're learning should work. When it's not based on any of
387 01:11:44,940 --> 01:12:03,030 those things. The market's only book and print these candles based on two principles and liquidity, going above old highs for buy stops going below lows
388 01:12:03,060 --> 01:12:15,780 for sell stops or rebalancing or creating imbalance. So it's imbalance rebalance, run for liquidity. That's it. It does not do anything else. The
389 01:12:15,780 --> 01:12:24,000 algorithm is not looking at harmonic patterns. It's not thinking, Well, you know, I haven't used the bat pattern in a while. So it's driving me batty. It's
390 01:12:24,000 --> 01:12:36,300 not thinking, I want to scare the living hell out of them and create a shark pattern. It's silly, it's silly. And I know some of you trade like this, okay,
391 01:12:36,300 --> 01:12:47,460 and I'm not trying to make fun of you. I'm just asking you to be highly critical about a perception of what it is that we as traders do, and how much of a
392 01:12:47,460 --> 01:12:58,830 fallacy it is when you strip all that stuff away and it sounds like I'm biased because this is what I'm teaching you but lose what I'm doing. I gave up
393 01:12:58,830 --> 01:13:08,700 millions of dollars a year to come out here and teach for free I could still be making millions there's many of you are still asking conscious join on your paid
394 01:13:08,700 --> 01:13:24,360 no, you can't join. Be happy I'm teaching I'm teaching mentorship right here. Come on. What's in it for me? I'm already rich. already know how to trade. A lot
395 01:13:24,360 --> 01:13:40,530 of people like what I do. I don't need to be doing this. I just enjoy it. But why is the market doing what I teach so precisely. So consistently? Maybe it's
396 01:13:40,530 --> 01:13:57,330 because this is the market. Maybe it's because this is the algorithm. I'll leave that with you to the side. Enjoy your weekend. Be safe. I'll touch base with you
397 01:13:57,330 --> 01:13:57,840 on Tuesday.