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ICT YT - 2022-04-02 - ICT Mentorship 2022 Episode 16.srt

Last modified by Drunk Monkey on 2022-04-03 19:47
1 00:00:10,410 --> 00:00:21,960 ICT: Alright folks, welcome back. This lesson, I want to talk about the idea of multiple setups inside of the trading sessions. So there's a morning session,
2 00:00:22,350 --> 00:00:34,920 and there's a pm session when you're working with the New York index futures. If you look at the market in terms of a split day, the New York lunch hour between
3 00:00:34,920 --> 00:00:49,380 noon and one o'clock PM, New York local time. 8:30am morning to noon. Yes, essentially the morning session. There can be multiple setups inside of that.
4 00:00:49,380 --> 00:01:00,900 Now, some of the things I noticed in the comment sections of the videos. Some viewers and students are asking, What do I mean by multiple setups? Like what
5 00:01:00,900 --> 00:01:10,170 does it look like? And I kind of like want to touch a little bit on that tonight. Also, I want to give you a little bit more perspective on how you can
6 00:01:10,170 --> 00:01:21,780 look for additional ways of trading. What it is I'm sharing here, we looking at the s&p futures mini contract for June 2022. You can see we recently traded up
7 00:01:22,290 --> 00:01:32,520 above the relative equal highs. So buy stops and buy side liquidity, we're resting right above here says the market drove above that we always had the
8 00:01:32,520 --> 00:01:42,030 likelihood of seeing it continue going higher. But whenever it goes above relative equal highs, and then we get a swing high like this, that being high
9 00:01:42,030 --> 00:01:53,250 here, lower than the higher candle here. And the next candle after this candle, it has a lower high as well. So it's a swing high, not to be confused with a
10 00:01:53,460 --> 00:02:06,210 fractal that used like an empty four. Okay, that is not what I'm talking about. Okay, that takes more candles to make it. And by then five candles later, it's
11 00:02:06,210 --> 00:02:15,540 just, you've already missed them in, say, a swing high here. Since this candle closes the next day, I'm looking for something to create an opportunity to go
12 00:02:15,540 --> 00:02:25,590 short. So we could be anticipating open here rally power three, which is what I already taught on the YouTube channel. The accumulation, manipulation,
13 00:02:25,620 --> 00:02:38,670 distribution, and then incorporating the next level of analysis, which is understanding whether we're going to be in a premium or discount market. Now
14 00:02:38,670 --> 00:02:47,520 obviously, we're in a premium market, we're above old highs here, we really stretched out and the upside from this high if we start to go lower, this down
15 00:02:47,520 --> 00:02:57,060 close candle is your bullish order block. Okay, the idea of it trading into that down close candle. Once it goes above these highs, that's favorable, that's
16 00:02:57,060 --> 00:03:05,520 something that could potentially happen. Now, obviously, I have the benefit of hindsight here. But I promise you, if you if you study what I'm teaching you,
17 00:03:06,180 --> 00:03:15,270 you'll see this repeating. Okay. So the market does in fact, trade down into the down close candle. That is your bullish order block. But I want to go inside
18 00:03:15,270 --> 00:03:26,130 this particular day here, which is obviously Friday. And we're looking at the internals behind what it is I'm trying to teach you, and how you can find
19 00:03:26,130 --> 00:03:37,890 multiple setups inside of each respective session, the morning session and the pm session. Alright, so here is the hourly chart on the s&p futures mini
20 00:03:37,890 --> 00:03:49,260 contract for June 2022. And I kind of like want to bring your mindset back into what we're looking for. And that is the power three, we're looking for an
21 00:03:49,260 --> 00:03:58,980 expansion move direction higher or lower. In this case, we're looking for it to go lower, because we have the daily bullish order block level that line here,
22 00:03:59,370 --> 00:04:09,510 level 45 04 And look at the lay of the land. Okay, what is it that we see also in the price action of go to the left you can see we have relative equal lows,
23 00:04:09,750 --> 00:04:20,190 we have this low. And we have this low here. So they're relatively equal? Not exactly, that's why I named them relatively equal lows. The idea of liquidity
24 00:04:20,190 --> 00:04:30,330 resting below here by itself without the order block is likely but it's further likely if we have a discount rate, which is that bullish order block on the
25 00:04:30,330 --> 00:04:41,580 daily chart. So we have multiple factors here leading to the likelihood this area being probed for the purpose of pairing liquidity, the sell stops basically
26 00:04:41,580 --> 00:04:51,840 being rated. Initially in the morning, we were seeing the market trade higher higher, higher higher, and then we broke lower attacking the sell side liquidity
27 00:04:51,840 --> 00:04:55,470 here and then aggressively running into the daily bullish order block.
28 00:04:57,240 --> 00:05:07,110 I want you to take a look at this framework from this high dump this load and this being a fulcrum point that mean, if this high trades to this low and we
29 00:05:07,110 --> 00:05:15,150 break this low, how far can we go down? I'm going to touch on that in the next slide. But for right now, I want you to think about how the opening price,
30 00:05:15,210 --> 00:05:25,620 what's the opening price? Well, there's two. If you're trading index futures, the opening price is midnight in New York time. And that's this candle here. And
31 00:05:25,620 --> 00:05:36,840 it's the opening price here. And then there's another opening price at 830. In the morning, the opening price in the candle that begins 830. It doesn't matter
32 00:05:36,870 --> 00:05:46,080 what candle you use, I see a lot of questions popping up about that, like, what's the opening price? And what can we use? Soon as you have 830, beginning a
33 00:05:46,080 --> 00:05:55,680 new candle, it could be a one minute candle, it could be a three minute candle, an hourly candle, 15 minute candle, whatever that opening price is, that's what
34 00:05:55,680 --> 00:06:07,350 you want to note at 830. So if you're bearish, ideally, you want to see the market trade above that opening price, this is going to be manipulation. Okay,
35 00:06:07,830 --> 00:06:18,990 the manipulation is the running above a key level, when we are bearish, we're expecting this to go lower. All of this is basically market protraction, where
36 00:06:18,990 --> 00:06:27,840 it's a Judas swing, okay, the markets going in the opposing direction that it's likely to go to later into the day. So later in the day, we're expected to go
37 00:06:27,840 --> 00:06:35,670 lower. where's it gonna go below this? Well, it accelerates below this low, where could it go? Below here? Okay, then we have the bullish order block on the
38 00:06:35,670 --> 00:06:47,490 daily chart. So we have a lot of things coming together that draw on a great deal of probabilities. Now, probabilities are not absolute guarantees. Okay,
39 00:06:47,490 --> 00:06:53,820 that's not the case in trading. If that was the case, I would never take a losing trade, you would never take a losing trade. We wouldn't need you stop
40 00:06:53,820 --> 00:07:06,180 losses and be great. But unfortunately, we have to contend with risk. That being the case, we have to at least build the idea around the likelihood of a scenario
41 00:07:06,180 --> 00:07:20,550 unfolding but being prepared. If it doesn't. So if this market opening here at midnight, it starts to rally, we can anticipate this selling off. But if it can
42 00:07:20,550 --> 00:07:28,320 sell off from here and trade below this low, how much further can it go below these relative equal lows? Obviously, we have the daily bullish order block
43 00:07:28,320 --> 00:07:39,480 level here. Or here. Let me take you back up real quick. That's this level here. The opening price on this down close candle, that's the order block, extending
44 00:07:39,480 --> 00:07:47,850 that line out in time you end up with this on the hourly chart. So we dropped down into that level and look at the reaction here. It's nice, isn't it? So
45 00:07:48,570 --> 00:07:54,150 going below this low, that's the initial target, then reaching below the relative equal lows over here, because that's where a sell sell equity is going
46 00:07:54,150 --> 00:08:07,560 to be residing, then tapping into that bullish order block on the daily chart. But how much further can we go below that level? How far beyond the actual order
47 00:08:07,560 --> 00:08:17,580 block level? Can we go? Well, I'm going to zoom in on a 15 minute timeframe. I've already taught this in other lectures, but I'm going to revisit it here
48 00:08:17,580 --> 00:08:24,810 because this is what you're looking for when you're doing your analysis. When everything starts to show a willingness to want to go lower, how do we know it's
49 00:08:24,810 --> 00:08:35,850 going to go lower? Well, we have this swing low here decisively broken see that this low, broken heart, then we trade back up into the imbalance here. So the
50 00:08:35,850 --> 00:08:46,080 fear of a gap trade up into it here at this point, we anticipate the candles past this, or the new forming candles to trade lower, and trade below this low.
51 00:08:46,200 --> 00:08:56,340 If it does go below this low we're looking at this price point here that low as a fulcrum point that been measuring this high down to that low that same
52 00:08:56,340 --> 00:09:07,620 measurement of distance and we expect that projected lower. Okay, so this is my swing trading model. And I'm applying it to targeting. So the way you do it is
53 00:09:07,620 --> 00:09:15,960 you take your Fibonacci and you anchor to the highest body, it can be open or closed doesn't make a difference. But you anchor on that notice I'm not putting
54 00:09:15,990 --> 00:09:28,620 on high here and I'm doing the same thing with the lowest open or close in this swing low. This retracement up. I'm measuring the distance in terms of range
55 00:09:28,890 --> 00:09:36,600 with the bodies of the candles. The first time I taught this on YouTube, I had a lot of folks scratching their head and many trolls saying he doesn't even have
56 00:09:36,600 --> 00:09:37,260 to use a fib.
57 00:09:39,210 --> 00:09:52,470 I'm showing you how the algorithm is going to read the price. Okay? The wicks and tails are all distractions. That's all going to be largely attributed to
58 00:09:52,500 --> 00:10:04,380 what the if you're especially if you're trading with Forex, and obviously I'm aware that this is not Forex, but I learned this through the models that I
59 00:10:04,380 --> 00:10:16,980 employ with Forex. Now it's a carryover in terms of analysis, because you can apply it here as well. It wasn't always like this, when there was open outcry
60 00:10:17,220 --> 00:10:26,760 only, and there was no electronic trading. This wasn't as pure as you're gonna see and has, it's been shown in the past by me in other videos and examples. But
61 00:10:27,300 --> 00:10:37,830 by having a measurement from the highest body, in this swing up, in this swing low, the lowest body, that means the lowest open or closed, okay, I'm anchoring
62 00:10:37,860 --> 00:10:48,060 the fib on that. The settings on the Fibonacci I've included here. And these are the ones that's highlighted for this illustration. So below this low, we're
63 00:10:48,060 --> 00:11:00,150 looking for it to run into sell side. So if it goes below this low and aggressively expands lower, this could be your next target 4514 and a half. If
64 00:11:00,150 --> 00:11:10,530 it goes below this one, we can anticipate trading down to what 45 01 and a quarter. Now, the question you're going to probably have in your mind is okay,
65 00:11:10,530 --> 00:11:18,030 this is all fine and great, but how do we know which one to pick ICT? If you put 1000 lines on your chart ICT eventually they're going to somebody is going to
66 00:11:18,210 --> 00:11:27,540 see one of those levels get hit. And then you're going to make a video and say see how smart I am. I've seen all of your arguments. I've seen that kind of
67 00:11:27,540 --> 00:11:40,890 stuff tossed around in the forums and such. So if we look at the idea that that 45 04 in a quarter is just below what level that daily bullish order block at
68 00:11:40,890 --> 00:11:52,680 4504? Well, 4504, and we're getting a measurement down here. That means we could see it traded down to that level here. Now, if you look up here at this level
69 00:11:52,680 --> 00:12:05,580 right there, that low is exactly the candles low right there. Don't take my word for it go to trading view, pull up the June contract for 2022 E Mini s&p, that
70 00:12:05,580 --> 00:12:16,050 is your daily Well, you can't predict daily highs and lows ICT that's impossible. Well, it is possible if you understand the elements that these
71 00:12:16,050 --> 00:12:27,180 algorithms operate under. And my question to you is, can you get any better than that? Is there any other measurement in terms of precision that gets you any
72 00:12:27,180 --> 00:12:42,600 closer to 45 01 and a quarter, not when the low is 45 01 and a quarter? Look at the reaction there. Now the order block level is just right here. But it stabs
73 00:12:42,600 --> 00:12:50,550 down into what the algorithms going to measure. So there's the order block, it wants to go down to it anyway, there's relatively equal lows, it knows there's
74 00:12:50,550 --> 00:12:59,850 liquidity down there. And you have the measurement. So the precision element is only going to be beneficial. If you have all the other narrative incorporated
75 00:12:59,850 --> 00:13:07,920 with your analysis. That means the markets likely to go lower. Because we ran out there's relative equal highs on the daily chart. We create this swing high,
76 00:13:08,130 --> 00:13:16,530 we broke lower aggressively, we're likely to trade in that daily bullish order block. Then we have this retracement here, it completely closes in all the
77 00:13:16,530 --> 00:13:27,420 imbalance that's between this low and this high of that candle. It rebalanced all that and then we roll over. Here's that gap I mentioned trades up into that
78 00:13:27,420 --> 00:13:37,470 we anticipate what the candles after this candle closes, we want to see acceleration to the downside, we get it, the market starts working Lower, lower.
79 00:13:37,500 --> 00:13:51,030 And finally rate on a dime. That candle is that low. And that's your swing projection I teach in this YouTube channel. You will not get that measurement.
80 00:13:51,480 --> 00:14:04,350 If you use this swing high in that swing low. That's why everybody that uses Fibonacci struggles. All Fibonacci is a joke. It's not a joke, if you are doing
81 00:14:04,350 --> 00:14:15,810 the measurements correctly. Now these are just targets but they are more meaningful when you apply and layer other things in analysis, like the purpose
82 00:14:15,810 --> 00:14:25,650 of running to liquidity below those relatively cool loads into a discount array, which is the bullish daily order block. When you bring that together, you get
83 00:14:25,650 --> 00:14:38,370 these types of results, which is perfection. There's nothing better than this folks, you cannot improve upon Perfect. Alright, so taking us a little bit
84 00:14:38,370 --> 00:14:40,530 further. Now we're into a 15 minute timeframe.
85 00:14:40,979 --> 00:14:53,579 The opening price again, is this candle here which is midnight, New York time, the opening price. That candle you extended out in time. If you're bearish and
86 00:14:53,579 --> 00:14:59,729 you are looking at your daily chart, because the majority of your analysis should be framed on your daily chart. Where's it likely to go? Where's the
87 00:14:59,729 --> 00:15:08,369 expanse? and likely to take price higher or lower. That's the main thing you're trying to look for, because that's going to carve out your bias. So if you know
88 00:15:08,369 --> 00:15:17,939 that the likelihood of price wanting to draw down to this daily bullish order block, and we have that level of 45 01 and a quarter, which is that candles low,
89 00:15:17,969 --> 00:15:25,139 we don't need to have that yet. But we know that this is going to be a draw on liquidity because it's also below this relative equal lows that I mentioned.
90 00:15:25,499 --> 00:15:36,689 We're looking at the higher Time Frame chart. So all of this here is a build up into the premium. The market then breaks aggressively. What does it create here?
91 00:15:38,039 --> 00:15:49,169 What happened here? We have a displacement down. Did that take out that swing low? Yes. Does it trade up into that imbalance right here? Yes. Does it trade
92 00:15:49,169 --> 00:16:00,089 above the opening price? Yes. How many boxes did we just check out there a whole lot. Probabilities are now going through the roof that this is bearish in the
93 00:16:00,089 --> 00:16:08,999 market breaks lower trades down to the old swing low sell side liquidity resting below there. Watch what happens. We trade down through it. And then we
94 00:16:08,999 --> 00:16:19,199 aggressively rebalance all this down move, we come right back up into it. Bearish order block, then sells off another week into this short term low deeper
95 00:16:19,199 --> 00:16:32,429 below this low and into eventually into the lunch hour and past that for the daily bull shorter pop. Now, when you look at this type of price action, you
96 00:16:32,429 --> 00:16:41,759 might not see that as an entry, but it is taught to you in this mentorship on YouTube. That is the lesson right here. Because if you look back here, we have
97 00:16:41,759 --> 00:16:52,709 these highs. We trade above it. Does it break below? It does? Does it get them in balance? Yes. There's a trade up in here on the 930. Opening? Yes. And then
98 00:16:52,709 --> 00:17:05,249 does it run where we want it to liquidity and discount array in the form of a bullish order block? Yes. But what other setups are here? Because I mentioned in
99 00:17:05,249 --> 00:17:15,389 my real money real results series where I was showing actual live account results and proving that these things make money, not just in demo. And by the
100 00:17:15,389 --> 00:17:25,889 way, I appreciate all the feedback I'm getting in the commentary section of the video, the comment section. But I've read a lot of the questions about you know,
101 00:17:26,279 --> 00:17:35,459 what do I mean by having no more than four trades, two trades in the morning, two trades in the afternoon. What did I mean by that? Because I read one guy, he
102 00:17:35,459 --> 00:17:44,099 was saying I can't even find, you know, four examples of this. Or I may not be saying this correctly, but he can't find that many examples of forming over the
103 00:17:44,099 --> 00:17:55,529 course of a week, let alone a few times intraday. So we're going to walk through today's price action and show it with clarity. Price, here's the opening price
104 00:17:55,529 --> 00:18:03,569 again, on a five minute chart. Here's the 15 minute time frame fair value gap. And the market trades right back up into it about the opening price. That's what
105 00:18:03,569 --> 00:18:13,469 it would look like on a five minute chart. Notice it does not look clean, like it does on the 15 minute time frames, go back up one more time. See the gap
106 00:18:13,469 --> 00:18:27,809 here. And that run right there at 930. That coupled with this timeframe, you probably wouldn't see that as a sell you would want to see this filled in. But
107 00:18:27,809 --> 00:18:35,129 you got to look at the higher timeframe, the higher timeframe, 15 minute timeframe is providing you the framework is giving you context that okay, this
108 00:18:35,129 --> 00:18:47,429 is all we need. We don't need it to trade up into that. It could, but we don't need it to. So when it trades up there, man starts to break down. It rebalances
109 00:18:47,879 --> 00:19:01,349 breaks down again. works into that short term low sells off again, retracement sells off again, in here. This is your entry at the opening. So in the morning
110 00:19:01,349 --> 00:19:11,999 session, you typically have two to three setups because you have volatility coming in at the opening, opening being 930 New York local time. That can be
111 00:19:11,999 --> 00:19:22,019 very tricky. If you're not really sure what you're doing. You can get caught up in the initial volatility and offside real quick and it can run against you
112 00:19:22,019 --> 00:19:23,039 aggressively and hurt you.
113 00:19:24,780 --> 00:19:36,660 I prefer to see my students look for the initial move to kind of like qualify what your expected lower prices right. So does it give it here? Yes, it does. So
114 00:19:36,660 --> 00:19:45,360 how can you participate in something like that and still have the bias behind you and have multiple setups that you can take. Let's take a closer look on the
115 00:19:45,360 --> 00:19:53,190 lower timeframe. Here's the one minute chart here's that return back up into the fair value gap on the 15 minute timeframe and wasn't so clear with the five
116 00:19:53,190 --> 00:20:01,830 minute but now look what we have here. Small little imbalance there that fair value gap rate above a short term high which going up into that there, one on
117 00:20:01,830 --> 00:20:15,990 one minute chart, you would see that as a setup for the one minute chart. Before I go any further, I want you to pause the video. I know some of you don't like
118 00:20:15,990 --> 00:20:23,340 to do this, because you just want to get through it, you're watching the video at two times the speed because I talk slow. This is a time when you want to
119 00:20:23,340 --> 00:20:34,080 stop, slow down, because you will cheat yourself out of learning. This is the low moments like when I'm teaching my private group, these are these
120 00:20:34,080 --> 00:20:44,520 opportunities, if you waste them, you do not learn the best way, okay, there's a good there's a good way of learning. And there's the best way of learning. And
121 00:20:44,520 --> 00:20:53,100 the best way is actually participating not just casually watching, don't Netflix, binge watch ICT. This is where you stop the video, ask your spouse or
122 00:20:53,100 --> 00:21:01,980 whatever, they give you a couple minutes to focus undisturbed. That way you can pull out the things I'm trying to show you in this lesson. Otherwise, it's just
123 00:21:01,980 --> 00:21:12,360 another, you know event where I'm talking about hindsight. But what I'm showing you here is something that repeats every single day. This is how I can go in
124 00:21:12,360 --> 00:21:22,080 every single day and take money out of the marketplace, I took the Live account up another $1,000 today. So we're over $51,000. And these are the types of
125 00:21:22,080 --> 00:21:29,490 setups that you can do, you can find these and you don't have to have the absolute perfect entry at the opening. You don't need that. Okay, that's the
126 00:21:29,490 --> 00:21:42,000 benefit of what I'm sharing here publicly, I want you all to have the ability to feed yourself and your own family not to rely on a job. If you look for these
127 00:21:42,000 --> 00:21:51,630 types of setups, with this logic, I am confident that you can do what I just said. And those that really want to supercharge it can take it way beyond that.
128 00:21:52,020 --> 00:22:00,990 Competitions, you know, whatever. But we have the logic here, that's the old short term low I did was extend the line out because it doesn't exist in the
129 00:22:00,990 --> 00:22:10,170 chart over here because I don't have enough data showing but that short term low, that was a fulcrum point, you remember, that's this low here. So I'm
130 00:22:10,200 --> 00:22:17,820 referencing that selling that there's where the sell side liquidity is. But I want you to pause the video and go through this price action and find the setups
131 00:22:17,820 --> 00:22:25,590 that you would see as a shorting opportunity if your bias was in line with what I'm suggesting here as it should have been being bearish.
132 00:22:31,049 --> 00:22:42,599 Okay, I'm gonna continue to conversation, if you're not ready, you've missed your opportunity. Alright, so the first fair value gap here, right there because
133 00:22:42,599 --> 00:22:52,649 we have this short term low broken with the run lower. So there's displacement there, obvious displacement, very energetic, and we have this candles high, this
134 00:22:52,649 --> 00:23:01,529 candles low and the market returns back up into it, you can go short there and look for what's the first objective, that fulcrum point that short term low, aim
135 00:23:01,529 --> 00:23:10,409 for the liquidity so your target would be there. So you could do like, say did two contracts entry here. Short here too, you can take one off here, let it
136 00:23:10,409 --> 00:23:19,079 ride, and see if you can get that lower timeframe objective later in the day. Now, I don't want to take entries during the lunch hour between noon and one
137 00:23:19,079 --> 00:23:28,289 o'clock. But you can take profits, if you're doing like a partial, like we did one here. I'm sorry, I could do two short contracts here, he took one off at
138 00:23:28,289 --> 00:23:36,629 your first target. And you want to see if you can get the other objective. If you have a limit order at the order block level plus, you know, points he could
139 00:23:36,629 --> 00:23:44,159 fill during the lunch hour, you don't need to be babysitting it being in front of it, then, because you've already funded your position and trade by taking one
140 00:23:44,159 --> 00:23:54,929 off from here off and moving your stop to break even in this see what it can yield in terms of the daily range. Next one is here. And alert short term low
141 00:23:54,959 --> 00:24:04,169 taken fair value gap there, we trade back up into it. That's a short, you can go short here. And again, same premise looking for the first run below here.
142 00:24:04,409 --> 00:24:14,279 There'll be your target taken there. If you did multiple contracts, you will get short here to take one off. This might scare you. Not so much. Probably if you
143 00:24:14,279 --> 00:24:23,069 were short from up here, but here could be a little bit intimidating. But if you've taken one of the contracts off below here, even if it were to come back
144 00:24:23,069 --> 00:24:34,439 up and take you out and stop you out. The first contract allows you to be profitable, so it kind of balances things out. Another one is here. We have the
145 00:24:34,439 --> 00:24:45,479 imbalance here after we aggressively move lower and then retrace back up in this is why I'm saying that previous short. If I was short from here, I wouldn't be
146 00:24:45,479 --> 00:24:54,119 worried about this on so much because your stop would be above here. Now it got close to it. But I've been many trades over the years where it moves within a
147 00:24:54,119 --> 00:25:03,749 quarter of a point with out stopping me out and it's it's A scary feeling, especially if you have a lot of size behind your positions at the time you're in
148 00:25:03,749 --> 00:25:13,709 the trade. But it's still a little intimidating because if you completely fulfill your model and follow it and all the roles, and you don't want to move
149 00:25:13,709 --> 00:25:21,539 your stop, and you just allow the stuff to be taken, there's been many instances in my own trading where within a quarter point, it doesn't stop me out. It's not
150 00:25:21,539 --> 00:25:29,699 like Forex, these markets are a little bit more professional, in the sense that they're much more precise, and uniform in the delivery, you don't get these
151 00:25:29,699 --> 00:25:40,559 wild, erratic little spikes and spreading, you know, the price action, because everybody's working with the same price here. Versus in forex, you're trading
152 00:25:40,559 --> 00:25:50,879 within a pool of liquidity within your brokers in house, and they have a little bit of luxury there where they can, they can open that spread on you. And that's
153 00:25:50,879 --> 00:25:59,249 why it's a little bit trickier to operate in that versus something like this market here. It doesn't mean I don't love Forex. Still, I do. But right now for
154 00:25:59,249 --> 00:26:11,099 access this quiet, it's not doing things that I would promote in my students attention. I'm telling all my students both in my private group, and you all
155 00:26:11,099 --> 00:26:19,709 here that this is the markets that you should be following these these markets right here, the index futures. I'm sure there'll be a time when we transition
156 00:26:19,709 --> 00:26:30,149 from index futures back to Forex, but until I see them loosen up a little bit in the currencies, my attention is here. Okay, so anyway, getting short here, this
157 00:26:30,149 --> 00:26:37,979 is a shallow run below the old low. So we anticipate it to run a little bit deeper than it does. Okay, so you can take profits below this low here as a
158 00:26:37,979 --> 00:26:39,749 partial. And then
159 00:26:41,280 --> 00:26:52,140 you've seen now obviously, multiple opportunities within the same morning session. So it's also showing you how if you miss your entry, how can you get
160 00:26:52,170 --> 00:27:00,810 back in line with the marketplace, and still participate in these moves. Now, there are going to be days where we don't have this many retracements, back and
161 00:27:00,810 --> 00:27:07,920 back and back and then goes lower, it'll be just one or two, and it just keeps on going. Or many times it will be just read the opening. And that's it, you
162 00:27:07,920 --> 00:27:15,120 missed it, it just goes right to where you thought was gonna go for today. And you can't get mad about that. You should be happy that your analysis concepts
163 00:27:15,120 --> 00:27:24,240 are speaking to you with that much clarity. And just know that because they repeat, none of you should be upset, you missed the trade. Like none of you,
164 00:27:24,270 --> 00:27:38,970 nobody has the permission. Okay, you have no right to be angry about missing a trade. Because they are like buses, okay, mass transit, buses that come by like
165 00:27:39,270 --> 00:27:48,690 a schedule, every certain time of the hour day, these buses are going to come around these trades are just like that. You can set your clock to them. Okay,
166 00:27:48,690 --> 00:27:57,660 they're they're going to form you're going to be there. Your number one goal is to understand where is it likely to go to? Where is it likely to reach for if
167 00:27:57,660 --> 00:28:08,610 you have that understood, it becomes so easy to know what you're looking for. Notice what I said there, it becomes easy to know what you are looking for. I
168 00:28:08,610 --> 00:28:19,770 did not say it's so easy for you to make money. There's a strong contrast there. Okay. But by default, over time, once you have been doing the things that lead
169 00:28:19,770 --> 00:28:28,080 to you understanding what is you're looking for, and that part becomes easier. What do you think that default result was going to be from that? It's probably
170 00:28:28,080 --> 00:28:36,540 going to be easier for you to make money over time. Okay, so I'm keeping things in balance so that we understand what I'm saying without Cercone making it sound
171 00:28:36,540 --> 00:28:43,800 like anybody can walk in here and do this. It's going to take some effort. Now you're probably looking at that pink rectangle asking yourself, What the heck is
172 00:28:43,800 --> 00:28:54,450 that? Well, that is the pm session by side liquidity pool. What does that mean? This high here was the most energetic one in the morning session. It took us all
173 00:28:54,450 --> 00:29:04,260 way down to what target we're looking for the daily bullish order block. Because it's Friday because it hit the daily timeframe objective. It's in a discount
174 00:29:04,260 --> 00:29:16,380 market, it's really traded lower. end of the week, there's going to be a retracement back into the weekly range. What can I aim for? Well, you can aim
175 00:29:16,380 --> 00:29:23,130 for the liquidity resting right here. Because a lot of people are going to say, well, you know, this is the place where my stop should be at because I want to
176 00:29:23,130 --> 00:29:30,840 hold on to this thing over the weekend. Now, I don't know who has the courage to do that anymore. With all the things going on around the world. I personally
177 00:29:30,840 --> 00:29:41,280 don't have the courage to hold over weekend. It's just too many things can go wrong. I'm not sitting in a potential opportunity, verse 1000 point gap against
178 00:29:41,280 --> 00:29:52,380 me when we start trading on Sunday. No, thank you. I'll pass on that. But this area here is where you would anticipate on Fridays, where liquidity could be a
179 00:29:52,380 --> 00:30:08,370 draw, because it's going to likely pull back up into a premium. What does that mean? Here's 830 Here's the turning point at the 930 rotation. So this high, or
180 00:30:08,370 --> 00:30:15,990 we could use this high here doesn't make a difference. But I'm going to use this one because reframing the logic become this day being bearish. So this high down
181 00:30:15,990 --> 00:30:28,860 to our target. If you put a Fibonacci on this low to high and find the 50% level, this is above 50%. So that means above here, that's a premium. So the
182 00:30:28,860 --> 00:30:31,680 market is going to move from what a discount
183 00:30:33,180 --> 00:30:44,130 to a premium. That's what the market does. That's the algorithm does, it seeks discount to premium premium to discount. Within that logic, the market is
184 00:30:44,130 --> 00:30:55,410 reaching for liquidity in the form of buy stocks and sell stops, and or imbalances or the creation of an imbalance, fair value gaps are returning back
185 00:30:55,410 --> 00:31:10,050 to a fear that you got, okay? That's all these algorithms do. And they do it on the basis of time, then price. Now, that's a gross oversimplification by me. But
186 00:31:10,440 --> 00:31:21,960 by foreign large, that's all these things do. It's not your buying and selling pressure, okay? It's not the effects of the DOM. Okay. I got a lot of people
187 00:31:21,960 --> 00:31:30,510 asking me because they watched me show things in my live account, and they think I trade with the DOM. I don't trade with the DOM. Okay, I'm not looking at the
188 00:31:30,510 --> 00:31:40,380 DOM trying to read how many orders are resting above or below because there's spoofing that goes on. And those orders may not be there when the price goes
189 00:31:40,380 --> 00:31:48,510 there. So I don't think that the DOM is something that is useful. I'm only throwing it in here, because I saw a lot of people in the comments asking about
190 00:31:48,510 --> 00:31:58,500 those types of things. And I don't use them, I don't use them in my trading. And I don't think there's anything in terms of advantage in using it. If you believe
191 00:31:58,500 --> 00:32:06,060 you're being profitable, because you are don't let my comment, change your mind in not trying to open up a dialogue for the bait because you're never gonna
192 00:32:06,060 --> 00:32:16,950 convince me. Okay, so you're okay, if you're using it, but I'm answering students or viewers, and that's my opinion. Okay, so I'm not trying to begin the
193 00:32:16,950 --> 00:32:26,490 beta mountain. Okay. So we have a pm session by the Kodi poll that the market could likely reach up into and again, the logic is, we moved from this high down
194 00:32:26,490 --> 00:32:35,760 to a target, it's Friday, there's probably going to be positioned squaring, they're going to want to take the market back higher. So what are they going to
195 00:32:35,760 --> 00:32:45,750 reach for as an opposing move? Notice what I'm saying here? This was the target, there's going to be short covering who's short covering the smart money that
196 00:32:45,750 --> 00:32:54,000 sold short here, here, here, here, here and here. So if they're covering a short, are they bearish still? No. So if you're not bearish, what are they
197 00:32:54,330 --> 00:33:04,050 bullish? So if they're going to be smart money, and buy down here, or they're gonna use this imbalance in here, if it trades them into that you can see a run
198 00:33:04,050 --> 00:33:14,280 higher? If they're going to buy it, what are you going to target, the buy stops up here, and they're going to sell right to those buy stops. They're buying this
199 00:33:15,060 --> 00:33:23,340 and selling it to these waiting buyers on their buy stops. Notice these relatively equal lows, they take it into the order block right below there's
200 00:33:23,340 --> 00:33:35,340 relative equal lows, because it sells what it sells the retail crowd that this was support broken. What are they gonna want to do, when it trades back up into
201 00:33:35,340 --> 00:33:47,970 these relative equal lows are going to do what sell right? That creates more liquidity for buying. So this is engineering by side liquidity on the basis of
202 00:33:47,970 --> 00:33:59,250 sell side flow, sellers coming in the marketplace. These sellers, they're gonna have a Counterparty in the form of smart money buying it. They want to sell
203 00:33:59,250 --> 00:34:07,350 short, because they see relatively close breaking, the trends been down. Everything looks bearish to them because it's been going down all day long. So
204 00:34:07,350 --> 00:34:15,600 they think naturally it's going to keep going down. When it's only traded down to where the algorithm says this is what we wanted. Now we're going to reprice
205 00:34:15,600 --> 00:34:25,200 higher, we're going to move from a discount to a premium. The premium intraday is going to be this area here and that's going to be where the market draws to,
206 00:34:25,590 --> 00:34:37,170 for the afternoon session by side liquidity. Alright, I was gonna do the pause the video type thing here, but this is going to be a long video so I'm just
207 00:34:37,170 --> 00:34:47,520 going to get right into it. Alright, so we have a navigation block here and teach that in the YouTube channel. But we have market structure breaking, we
208 00:34:47,520 --> 00:35:00,870 come back down into the mitigation block and we also have the imbalance here they got there. So we can be a buyer here and remember the 4532 to 45 40 level,
209 00:35:01,350 --> 00:35:16,920 go back up to this chart here. Green here. So this high, right here to here, think about those price ranges. We trade up into it here. So buying here and
210 00:35:16,950 --> 00:35:30,000 aiming for that liquidity up here, that would be your target from buying, to getting out there selling toys waiting by stops. The next one is here, the
211 00:35:30,000 --> 00:35:34,410 market trades down in. And I count you to go into your chart, I
212 00:35:34,410 --> 00:35:44,220 left this out for your own personal study. But if you look to the left, go over here, you'll see an old high, okay, old highs are a discount array. If we trade
213 00:35:44,220 --> 00:35:56,520 above an old high, that old high becomes a discount array. This is where not all the time. But this is where old highs being broken, become support. That's why
214 00:35:56,520 --> 00:36:05,610 sometimes the books have it right. That's why sometimes your analysis will be right about specific key highs and lows. But notice they're not always
215 00:36:05,610 --> 00:36:14,220 consistent. And that's the problem. So you want to know what makes a old high or an old low real supportive resistance when you have the logical framing here,
216 00:36:14,220 --> 00:36:21,330 because we know that the likelihood of the markets going to draw up into this area here because that's where the biceps are resting above the marketplace when
217 00:36:21,330 --> 00:36:32,040 it hit the order block down here. So what we're saying is, the markets going to bounce from here, up into this vicinity here. So if the market comes back down
218 00:36:32,040 --> 00:36:40,170 in touches, it could have touched this high here, but there's an old high to the left over here, you'll see it, it trades down and hits that and it also fills in
219 00:36:40,170 --> 00:36:51,330 an imbalance when you have that old highs broken will act as support. So there's some free notes, then we have the run up into that area, so it's not available
220 00:36:51,330 --> 00:37:01,560 run. Now once we get up into that shaded pink area, what have we done we fulfilled by liquidity. In this area here, we have a little bit more later on,
221 00:37:01,560 --> 00:37:11,550 which obviously you can see it runs through but here we see it do a run lower. So we broke below the swing low market structure shifts, is there any imbalances
222 00:37:11,550 --> 00:37:23,970 in here? No, but there is one right there, see that? Use your fair value got shift in market structure there, retraces back up into the fair value gap. It
223 00:37:23,970 --> 00:37:36,900 can be a seller they're in aim for this low or they were blocked. Or you can wait for confirmation entry, which is we turn here after it hits that fair value
224 00:37:36,900 --> 00:37:46,950 gap breaks lower. And then we have another breaking the structure of the marketplace on the one minute chart creates the imbalance here if your Vega
225 00:37:46,980 --> 00:37:53,880 trades up, yes, it overshoots it. But we also have to fair Vegas, remember the rules I gave you. If you have a fair value gap and a smaller one right above it,
226 00:37:53,910 --> 00:38:10,980 anticipate it likely trading up into you. But use this as your entry. Go short here and aim for the order block. So if you have an understanding of how we're
227 00:38:10,980 --> 00:38:21,420 going to work within the intraday volatility, using liquidity using the time of day, using the day of week, all these things come together in a make a really
228 00:38:21,420 --> 00:38:31,080 beautiful tapestry. So you can read price action. Now, I know there's a large number of you that are going to watch this. And it's going to feel insane. Like
229 00:38:31,110 --> 00:38:39,810 obviously anybody can go back in time and do these types of things. But a lot of my trades, when you see my examples, and you see the things I record and show
230 00:38:39,810 --> 00:38:49,050 you, they're using logic like this. So it's not contrived. It's not forfeited, it's not cherry picked for the purpose of just being something to talk about.
231 00:38:49,290 --> 00:38:56,040 This is what you're looking for. And when you do your back testing, I got a lot of questions in the comment section about this as well. You go through your
232 00:38:56,040 --> 00:39:05,040 charts, just like I'm doing here, and you annotate them. Now in all these areas where there's empty space here, or over here, or over here, you're putting in
233 00:39:05,040 --> 00:39:15,420 little notations and you're typing them out. And yes, it takes time. Yes, it's tedious. Yes, it takes a great deal of effort and desire. But this stuff,
234 00:39:16,590 --> 00:39:28,380 rewards that the game rewards it. It's not like fantasy football where you know, who cares if your team wins, this pays you. This is something that you can feed
235 00:39:28,380 --> 00:39:38,580 your family with, okay, if you need your expenses to be reduced, and you don't want to get on a job where you're, you take a pay cut, maybe you had a you know,
236 00:39:38,640 --> 00:39:51,480 job loss or whatever. This skill set can fortify any weak links in your financial chain. Okay, you want to build strength in your ability to make income
237 00:39:51,480 --> 00:40:02,250 and build legacy wealth. It's worthwhile for you to spend time learning this and that means going back through old charts And old moves and literally going in
238 00:40:02,430 --> 00:40:12,930 and annotating the moves like this, and mapping them out and seeing the logic that's there. Now, do not be afraid that you're going to do it wrong.
239 00:40:14,639 --> 00:40:23,789 All of you are going to be doing it wrong in the beginning. This is a skill set in back testing you're trying to discover, okay, you're not trying to do things
240 00:40:23,789 --> 00:40:34,889 correctly in back testing. Back testing is you in a mode of discovery that proves efficacy. If you can't see things repeating, then you got to go back into
241 00:40:34,889 --> 00:40:42,809 the core content lessons of this YouTube channel is ferret out what it is I'm teaching conceptually, then once you understand better what it is I'm showing
242 00:40:42,809 --> 00:40:50,489 you, then you go back into the old data, and look for those very things occurring, then highlight the things in your chart that makes the most sense to
243 00:40:50,489 --> 00:41:00,539 you, over time doing it. And frankly, you should be doing this, at least a minimum of a year. Okay, make it a practice of doing all that even when you
244 00:41:00,539 --> 00:41:10,409 start trading with live funds. Your trade journal should always have annotations, you should always have charts saved and just constantly referring
245 00:41:10,409 --> 00:41:21,149 to what you witnessed in price. And record it like you saw it happening and knew it was going to happen in advance. That's called self talk. Okay, you're
246 00:41:21,149 --> 00:41:30,929 literally tricking your brain into seeing your annotations as something that you foreseen coming. And that way, when you go back and you read your journal, and
247 00:41:30,929 --> 00:41:38,399 you study on the weekends, or, you know, whenever you go through a period of drawdown, and you need encouragement, you go back to your charts in your
248 00:41:38,399 --> 00:41:48,119 journal, and you'll see annotations that you wrote out yourself. And it tricks your brain believing that you seen that all along. Now, what happens by doing
249 00:41:48,119 --> 00:42:00,869 that over time, is you have created creases in your brain where that knowledge in that pseudo experience has been retained. But your brain remembers it as what
250 00:42:01,349 --> 00:42:09,749 a real experience that you endured. But you're recording it with positive reinforcement in your commentary. Never put negative comments in your
251 00:42:09,749 --> 00:42:17,519 annotation. Don't say like, Oh, I was stupid, I missed this. Oh, I'm so dumb. I fell victim to the shark pattern. Don't do all that kind of stuff. You don't
252 00:42:17,519 --> 00:42:23,219 have to worry about swimming with sharks, you don't have to worry about animal patterns. You don't have to be worried about any of those types of things. All
253 00:42:23,219 --> 00:42:32,429 you're looking for is liquidity imbalances, time of day. That's it. That's it. That's all this game is all about. Okay. The algorithm is not going to try to
254 00:42:32,429 --> 00:42:43,949 follow some retail logic stuff. It's based on where's the money? Where's the money? Who's the most easy prey right now? And where is the majority of the
255 00:42:43,949 --> 00:42:55,169 money. And that's where it's going to run for. That's all it's going to do. And if you strip everything you think you know about the markets away. And just give
256 00:42:55,169 --> 00:43:08,699 me a couple months. Stay with me for a couple months here. And I promise you, you will put everything else down and see it like this. Because this is the
257 00:43:08,699 --> 00:43:19,409 truth. This is the perfect understanding of what makes these markets book. That means what makes them go up and down where they turn, why they go where they go,
258 00:43:19,409 --> 00:43:28,919 why are they moving when they move? And why are they arriving when they arriving at that price point. It's all algorithmic, and it has absolutely nothing to do
259 00:43:29,279 --> 00:43:41,009 with ratios. It has nothing to do with anything harmonic. Nothing supply demand zone, nothing to do with Elliott Wave, nothing to do with Wycoff. Nothing to do
260 00:43:41,009 --> 00:43:52,439 again, none of that stuff has anything to do with it. I literally have just explained exactly what these markets do. That's it. There's nothing else that
261 00:43:52,439 --> 00:44:00,749 happens, the buying and selling pressure. It's a myth. Because these markets are going to go higher, regardless of how many contracts come in. If they want this
262 00:44:00,749 --> 00:44:12,329 thing to go up here. It doesn't require millions of contracts to put it there. It doesn't. How many contracts does it take for this candle to move from that
263 00:44:12,359 --> 00:44:23,129 opening price? To that closing price? Tell me how many can't how many contracts does it take for that to happen? It only needs to two transactions, two
264 00:44:23,129 --> 00:44:30,779 transactions one here. And when it gaps up here and read prices to that price point and offers it to the market that price and someone comes in with a market
265 00:44:30,779 --> 00:44:41,549 order. What happens boom. It's it the candles have been created. To trade, how many contracts? It doesn't make a difference. You only need a transaction. What?
266 00:44:42,179 --> 00:44:54,209 Yeah, folks, listen. You can sit down and listen to these videos I'm producing and coming with a preconceived notion that everything I'm saying is nonsense.
267 00:44:54,209 --> 00:44:58,499 It's not true and it's not valid because you don't want it to be
268 00:45:00,000 --> 00:45:10,110 All I'm asking you to do is put everything you think you understand, put it aside for a moment, just for a little while and go in and do the things I'm
269 00:45:10,110 --> 00:45:27,150 telling you to do. I guarantee you, you will absolutely fall in love with this. Because this is consistency. This is consistency that you have always hoped for.
270 00:45:27,300 --> 00:45:39,660 But everything else just falls short in delivering it. And you're getting it for free. And I'm loving it, while giving it to you. Because I know, and you're all
271 00:45:39,660 --> 00:45:48,750 gonna see it. When all these little light bulbs come on, in all of people watching these videos and folks, this channel is growing. It's growing, and it's
272 00:45:48,750 --> 00:46:03,390 trains gonna keep on rolling. This community is getting bigger and bigger, because it's infectious. results matter. Proof matters. And when students go
273 00:46:03,390 --> 00:46:16,140 into this, and they see the results, man, it's Sweden. In its sweet when you see the truth, finally it is laid out in front of you. There's no trickery here.
274 00:46:17,070 --> 00:46:29,310 There's no twisting of your arm, your credit card payment. You don't you don't have to blow any kisses to me, okay, I don't need flowers. I just want you to
275 00:46:29,460 --> 00:46:40,800 make a real effort. And then tell me what your results are. What did you get from it? I promise you, I'm promising you, you will find what you're looking
276 00:46:40,800 --> 00:46:50,970 for. But you got to put the work into it. Because if you don't put the work into it, it won't matter. Because you'll just think it's too much work. And I'm
277 00:46:50,970 --> 00:46:59,100 telling you, it only feels like a lot of work in the beginning. But once you understand what you're looking for, like this setup here, that might be your
278 00:46:59,100 --> 00:47:06,810 particular setup in this up here isn't your setup. This might be your setup here, because it's based on that old time, it's you'll find if you scroll back
279 00:47:06,810 --> 00:47:17,310 on your own chart, that might be your setup, and not this one down here. That's what I'm referring to when I say when you find your unique model, that means a
280 00:47:17,310 --> 00:47:27,600 setup that is so similar every time you take it, it repeats the same general idea, just in a different chart on a different day in a different timeframe.
281 00:47:29,010 --> 00:47:38,340 It's it it's all it's that's that's your unique model. You're learning how to do it with what I'm teaching you, but where you're looking for it, in what market
282 00:47:38,400 --> 00:47:51,240 in what narrative that you're looking for what makes that setup your particular setup. That's a unique thing for you. And that's the weird, beautiful element to
283 00:47:51,240 --> 00:48:01,830 trading in the way these markets operate is it allows each and every one of us to have our own unique model, we can all use the things I'm teaching and all
284 00:48:01,830 --> 00:48:12,480 find setups within the same trading day and be opposed to every individual trade setup. individually. Now, we could all be doing something and not agree with any
285 00:48:12,480 --> 00:48:21,030 of it. You took a short there, I was long a little while before that, or I went short, and you went long somewhere else. And you're ending a trade where I'm
286 00:48:21,030 --> 00:48:32,700 getting ready to put on a trade. It's amazing. But how you internalize the market, what setup you're looking for. There's lots of them. And if you break
287 00:48:32,700 --> 00:48:43,200 this chart down into a 32nd chart, or a 15 second chart, there's even more setups. Everything's fractal. So if you want to do high frequency trading, you
288 00:48:43,200 --> 00:48:53,880 can do that with the second chart, you may not be able to pull up second charts, because you may not have the I guess the subscription level on trading view and
289 00:48:53,880 --> 00:49:03,180 I don't get any subscription kickbacks, I'm not trying to get you to buy anything from trading view. I'm just stating that you can make this however you
290 00:49:03,180 --> 00:49:11,400 want. And if you just want to stay on a 15 minute chart and trade the daily range, okay, there's no reason to do anything less than that. But if you want to
291 00:49:11,400 --> 00:49:23,190 get busy and pyramid your positions, that means like say you bought one down here, or say you bought say bought five down here and you bought three here and
292 00:49:23,190 --> 00:49:32,100 you bought two here and then you wrote it into your objective that's a pyramid, your biggest position put on first, then a smaller position and then a smaller
293 00:49:32,100 --> 00:49:40,800 position. And then that that's how you build up the equity and you get velocity in your equity growth that way versus buying one than buying two and buying
294 00:49:40,800 --> 00:49:45,840 forward and buying eight that that is reckless and I've done that and I've roasted accounts doing it so
295 00:49:46,709 --> 00:49:56,909 don't do that. But hopefully this is at least got your gears turning about how you can go in and back test a little bit. How you can see multiple trade setups
296 00:49:56,909 --> 00:50:07,349 and how we can work with higher timeframe, PD arrays and The PDA matrix where it's discount the premium and premium discount, and how we use and incorporate
297 00:50:07,349 --> 00:50:14,849 all the different arrays, where I'm sure someone new watching this your head spinning right now you're like I have 1000 questions right now and I need to
298 00:50:14,849 --> 00:50:23,909 know this No, you don't need to know what you're asking for right now. You only feel like you need to know right now. Take the things I'm showing you that the
299 00:50:23,909 --> 00:50:32,279 pace I'm showing you study them. And I promise a couple months from now, you're gonna know a whole lot more than you know right now. And you'll be able to go in
300 00:50:32,279 --> 00:50:41,819 and see things in price action that you don't even identify right now, even in hindsight, you just got to give yourself the time and give yourself the real
301 00:50:41,849 --> 00:50:55,229 effort to learn this. I've stripped it down I mean, as streamlined as I possibly could. And I promise you will get this and I'll talk to you next time. Be safe.