ICT YT - 2022-04-08 - ICT Mentorship 2022 Episode 18.srt
Last modified by Drunk Monkey on 2022-04-15 19:06
| 1 | 00:00:05,190 --> 00:00:18,720 | ICT: Alright folks, welcome back to Episode 18, of continuing series of the ICT 2022, YouTube mentorship. Alright, so we are looking at the euro dollar. And |
| 2 | 00:00:18,750 --> 00:00:30,240 | what you have here is how I have my trade layout, this is what I work with, while utilizing my charts through trading view. And don't be intimidated, |
| 3 | 00:00:30,240 --> 00:00:39,750 | because you may not be able to do this with your trading view, there's a I think there's a membership level you have to have. And again, I'm not trying to |
| 4 | 00:00:39,750 --> 00:00:48,450 | promote, I don't get anything for you signing up with TradingView. I don't have any affiliate programs, nothing like that. I don't have any programs that I'm |
| 5 | 00:00:48,450 --> 00:01:00,300 | trying to pitch. I just liked the service. Okay, I pay for out of my pocket, you don't do me any favors, so, but I have it set up like this, when I'm looking at |
| 6 | 00:01:00,510 --> 00:01:11,010 | the marketplace, the upper left hand corner. Now you can do this with individual charts, and you'll see what I mean by having one laptop one screen. If you do |
| 7 | 00:01:11,010 --> 00:01:20,040 | what I'm going to show you here today, you don't need all these screens. But I've been asked this show this both in my private group and in the YouTube |
| 8 | 00:01:20,100 --> 00:01:30,300 | community. What do my charts look like when I'm going through the motions of looking for trade setups? And how do I navigate from higher timeframe down to |
| 9 | 00:01:30,300 --> 00:01:38,910 | the lower timeframe and how I work with daily bias? And what do I do with my charts to streamline the analysis from high timeframe to low timeframe, I'm |
| 10 | 00:01:38,910 --> 00:01:50,040 | going to show you that in this lesson here. Right, so upper left hand corner is always going to be the daily chart, you can see here daily. Now, if you're |
| 11 | 00:01:50,040 --> 00:02:00,330 | looking for bias, you're gonna start your analysis here. Now you can do it with the chart maximized like this, start working with it doing all of the business |
| 12 | 00:02:00,330 --> 00:02:14,220 | that you would expect to have your chart and we'll do this here. Shout out to my mentorship group, private group. I mentioned this on Wednesdays midweek |
| 13 | 00:02:14,220 --> 00:02:29,610 | commentary. Little bit of hindsight. Done Right. So we have fair of a gap there. And notice that it has this high, that low and a higher hot, many of you would |
| 14 | 00:02:29,610 --> 00:02:50,490 | see that as my bearish breaker. It's not, okay. So look at this here, which is lower? Is it this low here, or the discount low of the fair value got my words |
| 15 | 00:02:50,490 --> 00:02:59,700 | this candles high? Clearly, it's this candle is high. So I'm going to tell you something I told my private group last night because I can tell it to you now, |
| 16 | 00:02:59,940 --> 00:03:10,710 | it's not advantageous to you. It was advantageous for them because they knew about it yesterday. But I'm showing you this because I have a lot of witnesses |
| 17 | 00:03:10,710 --> 00:03:18,240 | that I said this before it happened. And I know some of you out here, unless you were there watching it, okay, you just simply won't believe it. And that's fine. |
| 18 | 00:03:18,270 --> 00:03:24,030 | I'm not here to convince every single one of you, you're either going to believe it, or you're going to watch somebody else's channels. And we'll do that. But |
| 19 | 00:03:25,140 --> 00:03:38,160 | the fair pay gap in here. I mentioned that we would likely draw up into that. And then look for lower prices. Now, let's step by step walk through a scenario |
| 20 | 00:03:38,370 --> 00:03:48,990 | using what I'm teaching you in this mentorship on the YouTube channel. Okay, I responded to a lady on the comment section of I think it was the most recent |
| 21 | 00:03:48,990 --> 00:04:01,560 | video so forgive me if it isn't that video, but I know I mentioned a response to her question was more or less I'm going to paraphrase it. Can I touch on or |
| 22 | 00:04:01,560 --> 00:04:14,370 | teach a specific approach to trading? Where can I mention rather a specific style of trading that if I only had to pick one way of doing it one style of |
| 23 | 00:04:14,370 --> 00:04:26,910 | trading that obviously hits all the time, what there is no method that hits every single time. Okay, everything that I trade with and teach is like |
| 24 | 00:04:26,940 --> 00:04:36,240 | everything else, it's imperfect. That means there's going to be losing transactions largely because of the operator, me or whoever else is using it. |
| 25 | 00:04:36,660 --> 00:04:46,680 | And you'd have to take ownership over that takes a great deal of responsibility, and I kind of lectured on that in my private group on Wednesday. It doesn't feel |
| 26 | 00:04:46,680 --> 00:04:56,880 | good to hear those types of woodshed lectures, but it's something I needed when I was younger. But if I was going to use one particular approach to trading, |
| 27 | 00:04:57,060 --> 00:05:06,420 | like say I was starting completely over didn't anything, but I discovered like, say this YouTube channel, knowing what I know |
| 28 | 00:05:07,950 --> 00:05:19,590 | about all the things that I can utilize and trading. The reason why I stripped it all down and created the model, like it is, and you're gonna see more of it |
| 29 | 00:05:19,620 --> 00:05:26,400 | being applied here today. So it gives you like a step by step approach. And there's some of you would ask them, Can you just kind of like, show me what it |
| 30 | 00:05:26,400 --> 00:05:35,760 | is I'm trying to do in a charts? Like, what am I looking for? What's what's a way of that testing? You know, how can I go through look at old data? I'm going |
| 31 | 00:05:35,760 --> 00:05:46,470 | to show you something here, but it was also given to my community yesterday, okay. And if I see a bunch of comments in the comment section, saying that it |
| 32 | 00:05:46,470 --> 00:05:55,860 | wasn't really done, I'll just simply upload the video and prove everybody says that wrong. So I'm ready. I'm ready for it. So the only short is it's not a big |
| 33 | 00:05:55,860 --> 00:06:04,530 | deal. It's not a huge trade. But it's proving prognostication, it's proving that number one, I've already hinted that this thing was likely to go lower anyway. |
| 34 | 00:06:04,950 --> 00:06:21,690 | And we seen it go lower. But utilizing the model, this model here in the YouTube 2022. mentorship, that, to me, is the easiest, and I would just do this, I |
| 35 | 00:06:21,690 --> 00:06:30,570 | wouldn't worry about doing anything with like, central bank dealers range, okay, I wouldn't worry about doing anything with Asian range. I wouldn't even worry |
| 36 | 00:06:30,570 --> 00:06:44,910 | about doing anything with the well, there's anything else unless I've mentioned it in this model, I wouldn't even do any investment of time at all, because this |
| 37 | 00:06:44,910 --> 00:06:59,730 | literally is the simplest way to work with intraday and daily order flow. It's simple. It really is this simple. It doesn't feel sexy, though. And they some of |
| 38 | 00:06:59,730 --> 00:07:08,130 | the young guys are like, wait till he starts bringing out all the really hard hitting gadgets and such, you're gonna be floored by that. Now, you don't need |
| 39 | 00:07:08,130 --> 00:07:14,100 | it. I don't want my daughter inundated with all that stuff. Number one, she's really not interested in trading. So I'm trying to convince her that she could |
| 40 | 00:07:14,100 --> 00:07:24,600 | do this with something. It's very simple. It's streamlined. So what does that mean by streamlining it? And what is the step by step process? Because I already |
| 41 | 00:07:24,600 --> 00:07:35,340 | told you the bias I've had on this currency. When I taught one Tuesday, I gave you a Forex lesson. I showed you an example with the euro. I said it's likely to |
| 42 | 00:07:35,340 --> 00:07:48,390 | draw into this low here. Now here's the wonderful thing. We don't even need it to go down to that low to find profitability. How's that? How is that possible? |
| 43 | 00:07:49,680 --> 00:08:00,690 | How are you able to responsibly handle daily bias, work with the higher timeframe and then frame out a setup using the logic that I'm showing you in |
| 44 | 00:08:00,690 --> 00:08:10,950 | this model? Let's do that. Now. Number one, the bias is bearish. So if a bearish bias is being implemented, okay, you know what you're using that in your |
| 45 | 00:08:10,950 --> 00:08:21,900 | analysis, you're going through the charts looking for setups that would warrant a short sale on this particular market, or this payer in forex. What I'm showing |
| 46 | 00:08:21,900 --> 00:08:32,220 | you here, all of this, up to now, if I make a transition to index futures trading, I'll mention certain caveats when it comes to that, but for now, |
| 47 | 00:08:32,490 --> 00:08:46,890 | everything I'm saying in this video, until I say otherwise, is pertinent to Forex. Okay, so it's specific to Forex. Alright, so bias is bearish. And we're |
| 48 | 00:08:46,890 --> 00:08:55,710 | looking at a daily chart. So you start your analysis there, you have a fear value gap here. So it can trade up into that and all you have to see is that |
| 49 | 00:08:55,740 --> 00:09:05,700 | candle traded to there. Now you can be greedy, and try to trade all the way up into the middle point or deep into it, maybe in complete closure. I don't need |
| 50 | 00:09:05,700 --> 00:09:15,840 | that. And we're going to bring in the element of time of day, and how that helps you decide what you're looking for. And you don't really need to catch that high |
| 51 | 00:09:15,840 --> 00:09:27,240 | that day either. So I'm gonna show you how to be forgiving with your entries. The important thing is knowing what you're looking for ahead of time. So that |
| 52 | 00:09:27,240 --> 00:09:35,550 | way you're not changing gears back and forth intraday, chasing an impulsive price swing that may feel like Oh, I'm probably wrong. Let me chase this. Let me |
| 53 | 00:09:35,550 --> 00:09:45,630 | chase that. When I showed the three months live trading account statements, what some of you are not listening to when I say in the video, listen to the videos. |
| 54 | 00:09:45,690 --> 00:09:58,920 | Okay, when I'm showing those statements. I'm disclosing the fact that I'm getting questions by my students. These folks have paid me okay, they asked for |
| 55 | 00:09:58,920 --> 00:10:08,370 | me to show them things in a live account, you are not privy to all of those conversations, because you're not in that community. |
| 56 | 00:10:08,789 --> 00:10:17,819 | So when they're asking me questions like, what do you do if you get this, this and this and this? Well, how would you work with that in a real market? I'm |
| 57 | 00:10:17,819 --> 00:10:28,229 | literally putting myself in a live account, creating those very similar similar situations that they're asking me about. And then moving out of those periods of |
| 58 | 00:10:28,229 --> 00:10:39,389 | either drawdown, or how to overcome the the anxious, I don't want to take a trade, I'm scared. What happens if you take losing trades? How do you overcome |
| 59 | 00:10:39,389 --> 00:10:50,219 | that a lot of those executions you're seeing is just simply me pushing a button to show that yes, you can do those types of things, to overcome initial fear, |
| 60 | 00:10:50,999 --> 00:10:56,249 | it's going to cost your commission, it's going to look like you have no idea what you're doing. And there's people out there looking at these statements, I |
| 61 | 00:10:56,249 --> 00:11:04,739 | encourage all of you to do it. But it isn't going to mean anything to you. Unless you understand what I'm really illustrating here, you're not the student |
| 62 | 00:11:04,919 --> 00:11:18,329 | that was spoken to in private with that live account showing that actual event unfolding. So just know that there's a lot of things that are going on, that are |
| 63 | 00:11:18,329 --> 00:11:29,609 | not necessarily your business, okay? The community here wanted to see a live account, you see a live account. But working within a Live account, unless you |
| 64 | 00:11:29,609 --> 00:11:39,539 | do things like I'm going to show you here, you're gonna have this changing of direction, intraday over and back and forth, back and forth, you're gonna go up, |
| 65 | 00:11:39,599 --> 00:11:46,019 | you're gonna go down, you're gonna go back and forth. And then it's gonna draw your account down, or worse, if you don't control yourself, you'll blow the |
| 66 | 00:11:46,019 --> 00:11:58,709 | account. So you have to commit to one direction, that's your bias, here's the thing, your bias isn't going to be perfect. And here's a newsflash for you, you |
| 67 | 00:11:58,709 --> 00:12:08,909 | as well. I'm not always perfect with my bias, either. A bias is just an idea that you want to work within an employee your short sale, when you're bearish, |
| 68 | 00:12:09,029 --> 00:12:18,269 | or employee, you're long trade ideas when you're bullish. And you're filtering out the other side of the marketplace. Unless you're proven clearly that you're |
| 69 | 00:12:18,269 --> 00:12:30,119 | absolutely wrong. You just simply wait for the setups to form with that bias in mind. Now, I know a lot of you are new, and you want to see things taught to you |
| 70 | 00:12:30,299 --> 00:12:40,379 | that simply remove any chance of you losing, there is no secret for that here. Nobody's going to teach that to you. Because it doesn't exist. And frankly, if |
| 71 | 00:12:40,379 --> 00:12:52,199 | someone had that, I'll be real honest with you, folks. If I had a way that I would never lose, I would have never came out publicly and became a teacher, I |
| 72 | 00:12:52,199 --> 00:13:00,359 | would be the richest person you've ever met. That's the God's honest truth as exactly what would happen. And if there's somebody out there that has some kind |
| 73 | 00:13:00,359 --> 00:13:11,099 | of a means of never losing. They're doing that very thing, you're never going to talk about it, they're never gonna teach it. So you don't need to be perfect, |
| 74 | 00:13:11,249 --> 00:13:22,289 | and I've proven in perfection still doubles the account. It's simple. And you can have a lot of losing trades. And this is one of the things that one of my |
| 75 | 00:13:22,289 --> 00:13:34,019 | students asked, he said, What if your win rate is really, really low? Can you still double an account? Yes, because I was thumbing my nose at this idea that a |
| 76 | 00:13:34,019 --> 00:13:43,349 | risk to reward model is essential for you to be net profitable. That's not true. I've proven that with a live account. I have lots of things I'm going to show |
| 77 | 00:13:43,349 --> 00:13:50,819 | you with this TD Ameritrade account before the end of the year. But just know that they're their future lessons that I'm going to literally go through and |
| 78 | 00:13:50,819 --> 00:13:59,279 | show you not everything, obviously, because you're not I'm not obligated to show you everything that the other community is entitled to. But I don't need to show |
| 79 | 00:13:59,279 --> 00:14:10,709 | you everything to see that account growing. Now. The question is, is what do you do? If you're in a live account? Let's let's paint a picture for you. Okay. Say |
| 80 | 00:14:10,709 --> 00:14:17,609 | you're one of those individuals out there that have gotten caught up in the fever of all these funded account programs. Okay, I'm not going to name any in |
| 81 | 00:14:17,609 --> 00:14:25,049 | particular because I don't have an affiliation with one. I don't want an affiliation with any of them. And I don't have any personal experience with my |
| 82 | 00:14:25,619 --> 00:14:36,809 | own trading with any of them. Okay, so that way we know I'm not repping anyone just know no inside kickback for me, none of that stuff. But there's a number of |
| 83 | 00:14:36,809 --> 00:14:50,159 | them out there. And my opinion of them is I have students that have gone through them and they are funded. Do I believe everyone should do that? I don't |
| 84 | 00:14:50,159 --> 00:14:52,079 | personally believe everyone should. |
| 85 | 00:14:53,340 --> 00:15:01,650 | But it is an avenue that you have to consider when you're in your own seat if you want to do that or not. But let's assume that you've gone through the |
| 86 | 00:15:01,650 --> 00:15:12,300 | process and now you have passed whatever that, you know, I guess the challenge or whatever they call it to get funded, and you found yourself with a, let's |
| 87 | 00:15:12,300 --> 00:15:26,940 | say, $100,000 account. Now what you have the ability to trade with what would be considered $100,000? What process? If it were me doing that? Okay. Let's, I'm |
| 88 | 00:15:26,940 --> 00:15:36,660 | going to speak in that perspective. Now, I'm not saying you should do this, notice that what I'm saying here, if it were me, and I was starting out all over |
| 89 | 00:15:36,660 --> 00:15:48,600 | again, I would use this model. And I would go through the process of what I'm going to show you right now. Okay. So Bailey bearish, daily bias, and I'm going |
| 90 | 00:15:48,600 --> 00:15:59,310 | through the daily chart, and I'm looking at recent price action. So we had this big drop down here, drawing towards this low. And then the next day, we had this |
| 91 | 00:15:59,310 --> 00:16:12,780 | candle trade up here. So that creates the fair value gap. So ideally, you know what we've seen here he went 12345 down days, now there's likely to have a |
| 92 | 00:16:12,780 --> 00:16:23,670 | retracement because we've seen it come way down in terms of the range between this low and this high. So what does that make that area down here? premium or |
| 93 | 00:16:23,670 --> 00:16:37,440 | discount? discount. So soon as this fair value got forms, we know that it's likely to see it rally up into this area here known as a short term little |
| 94 | 00:16:37,440 --> 00:16:51,480 | bounce that occurring. And trading back to this candles high is enough to set the stage for a new round of selling. So you highlight your area on your daily |
| 95 | 00:16:51,480 --> 00:17:02,430 | chart, and then look at what we have in terms of targets. This is an ideal scenario that low, but it's not likely to do that in one day. Can it do it? |
| 96 | 00:17:02,460 --> 00:17:18,420 | Absolutely. But look at what is available in terms of targeting. This day here, it created the fair value gap. So that means we can go in and Nope, that low |
| 97 | 00:17:18,420 --> 00:17:29,250 | right there. And we'll change it to blue. Here. Okay. And we're going to put a little line segment here on this daily candle. And we'll mark that one red. |
| 98 | 00:17:29,730 --> 00:17:38,880 | Okay, so we have more or less a premium level that's been highlighted. You can see it touches it, but it actually goes above it just a little bit. And that's |
| 99 | 00:17:38,910 --> 00:17:50,790 | all we'll need to justify a framework. Okay. Now, let me recap real quick. bearish bias, we're likely to drop down to this low here. Why? Because we had |
| 100 | 00:17:50,790 --> 00:18:02,940 | 123 times like I mentioned on the video on Tuesday, or episode 17 of the most begun in this mentorship. So it's likely to draw lower in dig into this low. |
| 101 | 00:18:03,150 --> 00:18:15,750 | That's our draw on liquidity on the daily chart. But is that your trade target? No. Not for intraday trading. So you frame your daily highs and lows previous |
| 102 | 00:18:15,750 --> 00:18:26,670 | daily high previous daily low. So we have this day here, yesterday's trading, or what would be considered Wednesday's trading. And in Thursday's trading, we |
| 103 | 00:18:26,670 --> 00:18:40,170 | opened here we rally up, popped just above that short term high. And now because we've seen that we can target that daily low right here. Okay, so this is the |
| 104 | 00:18:40,170 --> 00:18:49,200 | trading day on Thursday, we open rally up, create a Judas swing, run back into this fair value gap and then expect it to sell off and then we can aim for that |
| 105 | 00:18:49,230 --> 00:18:58,200 | daily low. Why? Because anybody that went long in here who would want to do that? There's always buyers and sellers. Okay, so we're gonna use previous day's |
| 106 | 00:18:58,200 --> 00:19:07,350 | highs and lows, like institutional mindset traders do. There's lots of liquidity around daily highs and lows, and high frequency trading algorithms attack |
| 107 | 00:19:07,380 --> 00:19:15,360 | previous day's highs and lows. If you were back in the baby pitch days when I came in the scene 2009 2010 That was the first lesson I started talking about is |
| 108 | 00:19:15,360 --> 00:19:24,810 | highlight the previous day's highs and lows, and do that for the last three days. If you do that, you'll see a plethora of setups that you can do. And that |
| 109 | 00:19:24,810 --> 00:19:34,080 | gives you liquidity pools that you can attack you there's always a fresh supply of new setups. If you're looking at the last three days highs and lows, it's |
| 110 | 00:19:34,110 --> 00:19:43,770 | always the case it's always going to be there. You're never going to run out of trades ever. Okay. So we have our framework here we have the x let me change |
| 111 | 00:19:43,770 --> 00:19:44,490 | this blue |
| 112 | 00:19:48,359 --> 00:20:01,109 | to that green, okay, so we have premium and discount. So these two levels are represented on the high and low of Wednesday's trade. thing, which would be |
| 113 | 00:20:01,109 --> 00:20:09,239 | yesterday straight. In other words, your chart would have looked like this Wednesday, going into Thursday before Thursday started trading, you'd have this. |
| 114 | 00:20:09,509 --> 00:20:18,149 | So you would not mark your chart out like this. So if we go up here, and we enter this fair value gap, that's your opportunity to go in looking for shorts. |
| 115 | 00:20:19,589 --> 00:20:28,409 | Then if it starts to go down, you're targeting this low with the expectation, why is it likely to do that? Because it may want to go down to this low. But |
| 116 | 00:20:28,409 --> 00:20:47,249 | this gives you a nice range of profitability, potential profitability. So a range of we'll just call that 935. to a low of what is it? Just the low here? 74 |
| 117 | 00:20:47,249 --> 00:21:04,349 | So 25? Six, we'll call it 6060. Handles. Okay, not bad. That's a pretty respectable range. Can you get 25 pips out of that? Can you get 30 pips out of |
| 118 | 00:21:04,349 --> 00:21:13,319 | that? About 40 pips, what we're going to find out. But this is the range of opportunity that exists looking at Wednesday's trading. And then Thursday, we |
| 119 | 00:21:13,319 --> 00:21:21,779 | open, we rally up, we bumped that high, like we would expect trading back into that fair value got, and then we watch price, does it give us a setup, what |
| 120 | 00:21:21,779 --> 00:21:31,529 | setup would have taught you in this mentorship? So we're going to drop down into the lower timeframe, if you have this layout like this. So whatever you do on |
| 121 | 00:21:31,529 --> 00:21:40,169 | one chart, it would appear in all the other timeframes, which is really nice. This is one of the things that I like to use in trading view, not that trading |
| 122 | 00:21:40,169 --> 00:21:46,589 | view is the only platform, because obviously, you can do this with everything out there today. But it's just really nice to be able to do this with all my |
| 123 | 00:21:46,589 --> 00:21:55,409 | students, they can do the same thing. But if you're working with one screen, like a laptop, and I'll answer this while I'm talking about it, should you be |
| 124 | 00:21:55,409 --> 00:22:08,129 | trading on your phone? No, no, you shouldn't? Can you manage a trade? On your phone? Yes. But entering a brand new position on your phone? No, you don't see |
| 125 | 00:22:08,129 --> 00:22:18,119 | enough data, it's just too compressed. And you need to be able to see the lay of the land, okay, you need to be able to open your chart up and really take in the |
| 126 | 00:22:18,119 --> 00:22:31,049 | information. If you don't do that, folks, you're really just looking at a small, little, small, little perspective, really, if you want to have advantages, you |
| 127 | 00:22:31,049 --> 00:22:42,749 | do it with a computer screen. Okay. If you want to be handicapped, then obviously try to trade on your phone. Okay. I have not met anyone that has been |
| 128 | 00:22:42,749 --> 00:22:50,549 | consistently profitable and trading millions of dollars in a trade on their phone, it just doesn't work like that, folks, you got to be responsible, you |
| 129 | 00:22:50,549 --> 00:22:57,359 | have to have some real estate. And yes, it requires a little bit of investment. But hey, you don't need all kinds of things. You don't need all the screens like |
| 130 | 00:22:57,359 --> 00:23:04,979 | I have and other people have out there. I'm showing you how you can do this one screen one monitor. So what would that look like? Obviously, you can see |
| 131 | 00:23:04,979 --> 00:23:15,479 | everything I did on the daily chart is transposed on to the hourly chart down here in the lower left hand corner. And it's transposed over here to the 15 |
| 132 | 00:23:15,479 --> 00:23:26,729 | minute timeframe. So timeframes are upper left is daily, lower left is hourly, and 15 minute timeframe is only right, the 15 minute time frame is my Bellwether |
| 133 | 00:23:26,759 --> 00:23:36,509 | chart, that's the one that I go to quickly, I want to keep referencing that 15 minute timeframe throughout the day. Because the information I get from it, |
| 134 | 00:23:36,509 --> 00:23:46,919 | which I'm going to show you is influential to me in terms of managing my position or hunting or stalking new trade setup. And also it helps me trust my |
| 135 | 00:23:46,919 --> 00:23:55,679 | intraday bias. And I'll I'll explain that when we get into that specific timeframe. But let me go back for a second to the deal because I want to bring |
| 136 | 00:23:55,679 --> 00:24:06,269 | something up. If you're using one screen, okay, you would obviously do this annotation here and then in this screen, you would just simply change it to the |
| 137 | 00:24:06,269 --> 00:24:19,919 | hourly chart. And then everything you did here would be transposed over to the trading view chart. That would be on the hourly chart rather. And then once |
| 138 | 00:24:19,919 --> 00:24:28,289 | you've done whatever breakdown and markups that you would have for your hourly chart, then you would drop down to the 15 minute time frame and all of the |
| 139 | 00:24:28,289 --> 00:24:40,919 | annotations from the daily and the hourly would appear on your 15 minute chart, as you'll see. Okay. So let's go back to the layout. And I'm going to maximize |
| 140 | 00:24:41,309 --> 00:24:49,079 | the hourly chart. Alright, so I like to do these types of things. Bring it to the actual level I'm |
| 141 | 00:24:49,140 --> 00:25:01,470 | anchoring to because I have obsessive compulsive disorder. So it is what it is. It's a struggle, folks. So in here, it's this imbalance on the daily chart, but |
| 142 | 00:25:01,470 --> 00:25:16,830 | now we can see it also exists in the hourly as well. So we have what? This high in this high, what are they, their relative equal highs anchored to that point |
| 143 | 00:25:16,860 --> 00:25:27,030 | right there. Okay. So usually in my annotations, I'm going into the chart. And this is for the purposes of showing you how to back test and how you annotate |
| 144 | 00:25:27,030 --> 00:25:27,510 | your chart. |
| 145 | 00:25:32,550 --> 00:25:53,670 | Toggle it to show on the top left, and you can use whatever color you want. And there we go. So we have the annotations. That would be on your chart for logging |
| 146 | 00:25:53,670 --> 00:26:06,930 | purposes for your study journal. And then you just screenshot this, okay, you might want to zoom in a little bit, you make the chart a little bit more |
| 147 | 00:26:06,930 --> 00:26:19,680 | aesthetically pleasing. Having something like that, more more information zoomed in to a specific area, and then simply go in and start working with the 15 |
| 148 | 00:26:19,680 --> 00:26:30,060 | minute time frame. Because this is all I would do with the hourly chart, because the frame of reference is that daily fare Vega, we have liquidity pool on the |
| 149 | 00:26:30,060 --> 00:26:40,140 | hourly chart, we've already mapped out that six of April's low. Notice there's no lower low this load and go down to it. And we start a new day on the seven |
| 150 | 00:26:40,140 --> 00:26:53,370 | here at midnight, New York local time. What do I mean by New York? Midnight? I'm gonna answer that. Let's go to the 15 minute time frame here. And you can see |
| 151 | 00:26:53,430 --> 00:27:02,670 | already have that little annotation updated on the 15 minute time frame. So now here's the 15 minute time frame. And I apologize for all of you that wouldn't |
| 152 | 00:27:02,760 --> 00:27:09,090 | otherwise know how to do this. But obviously it's a mentorship, right. And there's a lot of people in the comment section that are asking for these types |
| 153 | 00:27:09,090 --> 00:27:18,840 | of lessons. And once we go through this this episode, we won't ever have to revisit it again. Okay, so bear with me, okay. All right. So now we have one, |
| 154 | 00:27:18,840 --> 00:27:29,100 | the 15 minute time frame, we're going to annotate the daily dividers is always a little vertical line. Okay, and this little bar here is just my favorites bar. |
| 155 | 00:27:29,490 --> 00:27:39,600 | And you can Google that for setting that up. These are the things I use most in trading view. So when I expand the chart to maximize the full screen, I |
| 156 | 00:27:39,660 --> 00:27:46,920 | highlight the little star button in the lower left hand corner, just below the little link button, if you click that link button, any chart you have opened, |
| 157 | 00:27:46,920 --> 00:27:55,590 | that's the same symbol, any all the annotations will be plotted and placed on all the timeframes of that instrument or that pair or that market. So in other |
| 158 | 00:27:55,590 --> 00:28:03,510 | words, if like I was showing you at my trading layout, upper left hand corner and daily, hourly, lower left hand and 50 minutes on the right, it's the biggest |
| 159 | 00:28:03,510 --> 00:28:12,900 | chart, hitting that little link button icon will, again, link all your charts together. So whatever you're showing annotations on one timeframe will appear on |
| 160 | 00:28:12,900 --> 00:28:22,200 | all of them. That's how this is happening. Okay, you can Google that too. And there's a lot of tips you can get off of YouTube for training, most of my tips |
| 161 | 00:28:22,200 --> 00:28:32,460 | actually got from my students, which I appreciate because they're more fluent with this. I came from Mt four and TradeStation. So I'm a work in progress with |
| 162 | 00:28:32,550 --> 00:28:45,810 | trading view. So so you're gonna drop a vertical line here to delineate a new day at midnight, what is the opening price at New York? Midnight, that's this |
| 163 | 00:28:45,810 --> 00:28:56,730 | candle. And you highlight that, and this price right here. That right there. If you're looking at the timeframe on an hourly, that would be the opening price. |
| 164 | 00:28:57,690 --> 00:29:09,660 | I'm interested in that one, a 15 minute timeframe. Or if I'm going to be scalping, I'm going to use the five minute chart. Okay, and then I'll put two |
| 165 | 00:29:09,660 --> 00:29:18,600 | reference points on the five minute chart. But for the sake of this discussion, just know that that's the actual price I'm looking at. And I'm drawing that out |
| 166 | 00:29:18,600 --> 00:29:28,350 | in time. How far am I drawing it out? 11 o'clock in the morning, New York local time? How do I know? My charts gonna look like ICTs? Right. That's what you're |
| 167 | 00:29:28,350 --> 00:29:36,840 | asking. You toggle it to New York, I don't care where you live. I don't care where you're at and all the different time zones, your trading view chart needs |
| 168 | 00:29:36,840 --> 00:29:46,950 | to be set to this. If you do that, your chart will match all the things I'm teaching and the things I'm teaching you to look for will be easier to find. |
| 169 | 00:29:47,160 --> 00:29:58,290 | Okay, everything will be streamlined in terms of time of day. Alright, so now we have the basilica Lee pour the daily ventilation of midnight, New York time, and |
| 170 | 00:29:58,410 --> 00:29:59,940 | we're going to take a little |
| 171 | 00:30:02,520 --> 00:30:10,680 | line segment here. And we're gonna plot it right on here. Now I'm just gonna just rough it because it's basically a little tiny, indecisive candle, I don't |
| 172 | 00:30:10,680 --> 00:30:19,530 | care the difference between the actual opening close, it's very minut. But I'm going to draw that on here. And if you drag your, your trendline it over to the |
| 173 | 00:30:19,530 --> 00:30:31,410 | right, if you hold down the shift button, it'll keep your trendline straight. Okay, and just drop it there. And I'll just make this a gray color here. Now you |
| 174 | 00:30:31,410 --> 00:30:39,900 | can annotate that. But over time doing it, you'll just know that that's what you're anchoring and showing. This is the opening price at midnight. Okay. Now, |
| 175 | 00:30:40,770 --> 00:30:53,400 | we have the relative equal highs here, rally above them, once it hits this, do we get displacement? Now we get down to the nitty gritty, okay, we have a swing |
| 176 | 00:30:53,400 --> 00:31:07,650 | low here, it breaks down below that. And then once it does that, does it create an imbalance? Is there a fair value gap? Hint, hint, nudge nudge, you see that? |
| 177 | 00:31:08,040 --> 00:31:19,890 | Alright, so we're going to annotate that. So inside of this range, here, we have a fair Vega, and I'm gonna highlight this, we'll just use this color here. Now, |
| 178 | 00:31:19,890 --> 00:31:28,410 | these are probably not the best colors, you're probably cussing me right now saying, Why are you using these ugly colors ICT, it's mean just to annoy you. So |
| 179 | 00:31:28,410 --> 00:31:39,390 | that way, you can get more attentive and pay attention. Because this is a long video already. So we're looking at the market wanting to go higher first to go |
| 180 | 00:31:39,390 --> 00:31:52,590 | lower. And here's that midnight delineation starting a new day, we rally up, and then we break down. So what's the model teach trading when? The New York |
| 181 | 00:31:52,590 --> 00:32:04,800 | session? Okay, so we're trading the New York session. In Forex, it's seven o'clock in the morning to 10 o'clock in the morning, right there. Okay. So 10 |
| 182 | 00:32:04,800 --> 00:32:18,030 | o'clock in the morning, and seven o'clock. So we're looking for a setup that would be formed. within that timeframe. Now, you can create kills on Windows, |
| 183 | 00:32:19,410 --> 00:32:35,340 | annotations on your chart. There's lots of ways I've done this over the years, you can do it whatever way you want to do it. Inside center, and we'll make it |
| 184 | 00:32:36,720 --> 00:32:51,360 | work. And there you go. So the New York kill zone it runs up into that runs the highs. And we want to see a displacement to the downside, we get right there. |
| 185 | 00:32:51,630 --> 00:33:02,730 | Okay, so now you have this area here. And then you would put your order in, right there, what time is that? It's 10 o'clock. So you put your limit order in |
| 186 | 00:33:02,850 --> 00:33:14,520 | to sell short rate at that price right there or plus one period, and your risk is going to be above this high, the imbalance is really stretched out, you can |
| 187 | 00:33:14,520 --> 00:33:25,410 | use that as your stop. If you're really concerned, you can put your stop above the swing high. But whenever you have a big range like that, my stop can place |
| 188 | 00:33:25,440 --> 00:33:34,770 | right there. So your stock would be here. And you're going to go short here. That's the minimum expectation using the 15 minute time frame. But we're going |
| 189 | 00:33:34,770 --> 00:33:46,440 | to split the 15 minute timeframe down into five minute intervals. Okay, so we're gonna look inside this range here and see if it's advantageous for us to go down |
| 190 | 00:33:46,440 --> 00:33:55,080 | into a five minute chart. And does it have a fair value gap in that? Alright, so we're looking at the five minute chart now. And it's that shaded area here. So |
| 191 | 00:33:55,080 --> 00:34:07,590 | it's using this specific candle or that low? And we're looking inside this range right here. Okay, so it's this decline we're looking at, does it have fair value |
| 192 | 00:34:07,590 --> 00:34:19,380 | gap? Well, we have this small one right in here. See that? We have this stretched out one here. Yes. And then we have all this run in here where has a |
| 193 | 00:34:19,380 --> 00:34:27,360 | small little fear about you got. So now think about what's been shown on that 15 minute timeframe, we have a minimum threshold of at least reaching into this |
| 194 | 00:34:27,360 --> 00:34:38,280 | low. Okay, remember, I showed you on the 15th and timeframe, that imbalance so it needs to get up into that. Okay, so I'm answering the question that I saw or |
| 195 | 00:34:38,310 --> 00:34:48,270 | it really wasn't a question. It was someone trying to make a point that was showing something incorrectly by showing a higher timeframe fair value got |
| 196 | 00:34:48,300 --> 00:34:56,460 | because wouldn't the smaller timeframe fair value get formed before the higher timeframe? No, it never works like that. The higher timeframe imbalances are |
| 197 | 00:34:56,460 --> 00:34:57,600 | going to be parent, |
| 198 | 00:34:58,950 --> 00:35:12,600 | too. This subordinate smaller timeframes, okay? The parent, okay, is this 15 minute timeframe imbalance. So it needs to get above that. But when it does |
| 199 | 00:35:12,600 --> 00:35:24,480 | that, we have to look at the lower timeframe below 15 minute timeframe, which is the beginning stages of our fine tuned entry of 5432 and one timeframes. So here |
| 200 | 00:35:24,480 --> 00:35:34,410 | we have the five minute chart, we have an imbalance right here. And we have this small one right in here, it all up to this price point here, we could factor |
| 201 | 00:35:34,410 --> 00:35:46,770 | that in, but it's not likely to get up there. So we can look at what this level here that is the minimum expectation, you can put a cell in order there to go |
| 202 | 00:35:46,770 --> 00:35:58,950 | short, or you can fine tune this to rebalance all the way up to here. Right there now numbers, it would look like this, this would be your imbalance on the |
| 203 | 00:35:58,950 --> 00:36:14,520 | five minute chart. And if it traded up into that, right there, okay, now what you could use any tank, any specific price in this range, or you can pick this |
| 204 | 00:36:14,520 --> 00:36:25,380 | is where the unique style for you comes in. If you get greedy, you may not get your fill. So I'm teaching you the low threshold entry, but that always will |
| 205 | 00:36:25,380 --> 00:36:34,980 | give you the highest risk. But that higher risk in terms of number of pips not in terms of the amount of money because that part is always controlled by you, |
| 206 | 00:36:34,980 --> 00:36:43,440 | the trader, you can manage the amount of leverage you're using. And it doesn't matter how many pips of risk you have, the amount of allocation in terms of the |
| 207 | 00:36:43,440 --> 00:36:51,810 | leverage that you're using in the trade. That's the most important thing. And that's the most important thing that gets abused most of the time by traders, |
| 208 | 00:36:51,900 --> 00:37:01,980 | because every time a trader gets in the marketplace, their expectations are, how can I make the most, and they don't necessarily think about the other side of |
| 209 | 00:37:01,980 --> 00:37:12,990 | that sword. Because if the edge you're trying to chop with, okay, or swing, if it makes contact with your target, then yes, you are profitable. But if it comes |
| 210 | 00:37:12,990 --> 00:37:22,230 | back and hits you in the head, okay, you're burying it x rayed in your skull. So that leverage is going to be counterproductive to you, it's going to hurt you at |
| 211 | 00:37:22,230 --> 00:37:32,460 | that point, it's not going to be beneficial to you is going to harm you. So I'm teaching you the low threshold entry. But I'm also teaching you in addition to |
| 212 | 00:37:32,460 --> 00:37:42,300 | that, I'm showing you how to build an additional perspective that helps you find the better entries that allows you to shorten the number of pips or points if |
| 213 | 00:37:42,330 --> 00:37:51,990 | you're trading with the index futures. Okay? But long story short, this would be your range, you can work within, and it trades up into that secondary fair value |
| 214 | 00:37:51,990 --> 00:37:59,580 | gap. Now, some of you might say, Well, what happens if I put a limit up here? Well, that would be obviously a stellar entry. But you don't necessarily need |
| 215 | 00:37:59,580 --> 00:38:13,320 | that. Okay? Why I like this one, is because if you look at the 15 minute timeframe, it was like this. That was the range. Okay? So if we go up in that |
| 216 | 00:38:13,320 --> 00:38:27,690 | range to the upper end of it, look over here, what do we have all three of these candles here 123. The order block begins with this candles low. It's 123 |
| 217 | 00:38:27,690 --> 00:38:39,570 | candles, making one consecutive bearish order block. Some of you are commenting in a section of the videos saying I thought I understood order blocks. Now I'm |
| 218 | 00:38:39,570 --> 00:38:50,970 | confused because you're hearing people parrot what I've said in certain circumstances, and they don't understand what an order block is. Okay? This is |
| 219 | 00:38:50,970 --> 00:39:01,290 | why I get upset when people try to teach what they heard me teach about one or two times. And the buzzword is what's being tossed around so that way people can |
| 220 | 00:39:01,290 --> 00:39:10,650 | sell their courses and get clicks on their videos. You have no idea, learning about waterblocks from anybody else on YouTube, I'm gonna make it very plain and |
| 221 | 00:39:10,650 --> 00:39:17,400 | make a blanket statement with you. I'm not trying to hurt anybody's feelings because I know a lot of you out there to try to talk about waterblocks you have |
| 222 | 00:39:17,400 --> 00:39:26,130 | a lot of respect for me. But I'm trying to correct you because I know you have a large audience that some of you have a very large audience, and you're doing |
| 223 | 00:39:26,130 --> 00:39:38,070 | things that are not accurate. Okay, so I know you're watching my videos so that way you'll correct what you're doing. So that way your viewers won't be harmed, |
| 224 | 00:39:38,430 --> 00:39:49,230 | or they won't use something that's done incorrectly, and dubbed as my order block. And if they have hardship or difficulty doing it, it's |
| 225 | 00:39:50,250 --> 00:39:59,880 | not gonna be a tribute to the concepts being effective because they are effective. It's just, they haven't been taught properly. Okay, it's easier to |
| 226 | 00:39:59,880 --> 00:40:09,480 | talk About in hindsight, it's real hard to do it in real time, unless you know what you're doing. So the logic is we ran up into this daily fair value gap. |
| 227 | 00:40:09,510 --> 00:40:17,340 | That's what this level was up here, this red line was this relative equal highs on the hourly chart. Remember that? And you're gonna probably need to watch this |
| 228 | 00:40:17,340 --> 00:40:27,000 | video a few times, because I've gone through a lot already. But I'm breaking down the market. And this run here is the run into that imbalance, and about the |
| 229 | 00:40:27,000 --> 00:40:39,090 | relative equal highs. So this is the bearish order block. It's the consecutive run on this timeframe, the five minute chart. It does not need to get up into |
| 230 | 00:40:39,090 --> 00:40:47,250 | this last up close candle before down close, because that's what everybody says and I'm gonna block is it is not that. Notice, it doesn't even get up to that |
| 231 | 00:40:47,250 --> 00:41:01,980 | does it? Why? Because what I'm showing you here, what makes an order block valid, it has to have an imbalance. Without the imbalance. There is no order |
| 232 | 00:41:01,980 --> 00:41:12,450 | block. That's why it's not supplying to me. Okay? There are specific rules, I'm going to cut through candles, supply and demand requires fresh zones. Okay, |
| 233 | 00:41:12,630 --> 00:41:21,630 | that's nonsense, I have no affinity for anything like that. I'll cut through fractals and go through and find something over here. And still trade on it. |
| 234 | 00:41:23,010 --> 00:41:30,510 | That violates the supply and demand theory right there. So that's the distinction and why I laugh at people that say he's teaching really nothing new. |
| 235 | 00:41:30,540 --> 00:41:38,760 | I'm really teaching you something that no one's talking about. Unless I talk about it. First. They're saying what I said. And not to sound egotistical. I'm |
| 236 | 00:41:38,760 --> 00:41:48,300 | not trying to be egotistical, but I want you to learn it correctly, folks. Okay, I only want to see you do it the right way. Because if you do it the right way, |
| 237 | 00:41:48,330 --> 00:41:54,930 | you will find the results you're looking for, if you don't want to do what I'm teaching, you're not going to be consistent, you're not going to find longevity, |
| 238 | 00:41:54,960 --> 00:42:00,270 | and you're going to get frustrated. And you're going to think that this stuff doesn't work because you didn't learn it properly from the person that created |
| 239 | 00:42:00,300 --> 00:42:10,980 | it. The order block is all three consecutive candles. The reason why this last up close candle is not even traded to is because the higher timeframe parent |
| 240 | 00:42:11,010 --> 00:42:22,320 | imbalance, that 15 minute timeframe, which has been shown here, that range of that low in that candle is high here, it stops there. So there's no necessity |
| 241 | 00:42:22,320 --> 00:42:35,220 | for to trade up into that last candle. So if it trades up into this candle here, the bottom one, the last one of the three going up, that's enough for me and |
| 242 | 00:42:35,220 --> 00:42:44,280 | take it over here. And then we have this imbalance. So in my mind, this imbalance is sufficient. We don't need this one. And you wouldn't expect that |
| 243 | 00:42:44,280 --> 00:42:54,600 | last upclose cam to be traded too. So this is the ideal scenario that I think the mentorship on YouTube should be looking for. Now as soon as you have this. |
| 244 | 00:42:54,660 --> 00:43:03,660 | This is when you settle in on what do you met with another little fair value get right above it. So what were the rules that I gave you when it has that in the |
| 245 | 00:43:03,660 --> 00:43:14,070 | chart? I think it is going to be a likelihood that it could trade up in there. But your limit order to enter is down in here. Because it might not get up here. |
| 246 | 00:43:14,100 --> 00:43:20,970 | What am I trying to do? I'm trying to teach you how to avoid missing trades, because a lot of you are going to want to put an order up in here and yes, it |
| 247 | 00:43:20,970 --> 00:43:30,180 | would have been filled on this instance. But many times, you're gonna have an order placed at a really overzealous price point that if you nail it, it's |
| 248 | 00:43:30,180 --> 00:43:39,690 | beautiful. But they don't happen a lot. It's fleeting, it happens once in a while. So I'm trying to give you something that allows you to operate |
| 249 | 00:43:39,690 --> 00:43:46,710 | consistently gives you lots of setups that allow you to practice also back tests like I'm showing you here. It's just how you back test because this has already |
| 250 | 00:43:46,710 --> 00:43:54,330 | happened. But these are all the things that I'm teaching you in this mentorship. And I talked about this level here in my private group beforehand. And you also |
| 251 | 00:43:54,360 --> 00:44:04,020 | knew about the bias mean bearish on this pair from Tuesday's trading for Tuesday's episode in this mentorship on the YouTube channel. Okay, so we have a |
| 252 | 00:44:04,020 --> 00:44:13,770 | break in this low here. So there's an internal shift in market structure. It's bearish. We have the imbalance here and it's been redefined down into the five |
| 253 | 00:44:13,770 --> 00:44:21,720 | minute chart in concert with a bearish order block the lowest down close candle. We've talked about why we're not looking at the last left closed candle before |
| 254 | 00:44:21,720 --> 00:44:30,450 | the down move. So we're canceling all that misconception. And it runs up into the level with the rule I gave you, if you settling on a fair value gap and has |
| 255 | 00:44:30,450 --> 00:44:38,130 | a smile on above it expected it might trade up there. So your risk has to incorporate that. So that's the reason why I'm telling you your stop loss could |
| 256 | 00:44:38,130 --> 00:44:38,640 | be here. |
| 257 | 00:44:40,710 --> 00:44:48,720 | Yes, it might be a little bit too rich for some of you, because you want to trade with one pip stop loss, a half a pip stop loss. There's a lot of guys out |
| 258 | 00:44:48,720 --> 00:44:56,100 | there trying to do ultra ultra short term stuff. You might be able to pull it off once in a while maybe you know series of trades. But I promise you when you |
| 259 | 00:44:56,100 --> 00:45:05,220 | start putting down size on these trades, you're not going to pull that off It just isn't gonna happen. So don't get used to trying to do it. Okay? Plus, it's |
| 260 | 00:45:05,220 --> 00:45:16,440 | easy to do other things. You can walk away from the charts and not be chained to it. Because if you have a small altra shortstop, I don't care how good you are, |
| 261 | 00:45:16,590 --> 00:45:22,980 | you're going to sweat it, you're going to be expecting, you're gonna get stopped out. What happens if it stops me out? I'm not worried about getting stopped out. |
| 262 | 00:45:22,980 --> 00:45:31,320 | I'm not worried about if the market moves to my stop. I'm more interested in the market moving where I think it's going to go. Where's that that's this level |
| 263 | 00:45:31,320 --> 00:45:40,950 | down here? That's the sixth of April's low. Okay, yeah, we went lower than that already here. Let me get this thing out of the way. If you take this and move it |
| 264 | 00:45:40,950 --> 00:45:50,130 | out of the way, here, we have the early run at five o'clock or so in the morning, it made that at 525, New York local time in the morning, it swept the |
| 265 | 00:45:50,130 --> 00:46:01,530 | previous day's low. So the sixth of April was swept, then we rallied up and we hit the level that what our bias called for words, I'm looking for this level to |
| 266 | 00:46:01,530 --> 00:46:08,370 | be traded to before I go short. So I'm not taking anything in London, I'm not worried about anything in London, because London didn't give me the initial |
| 267 | 00:46:08,370 --> 00:46:17,850 | rally higher into this area. When does it go up here? It's going up there at 930 in the morning in New York local time. So it hits that level, it said it really |
| 268 | 00:46:17,850 --> 00:46:27,330 | rich premium. And I knew my discount level I'm looking for for targeting. So here's the framework, the setup, we have our market structure shift, we had |
| 269 | 00:46:27,930 --> 00:46:37,380 | disqualified all these upper candles here, the lower candle, that's where you're going to aim for. What's the order block the trade for Michael, what's the one? |
| 270 | 00:46:37,410 --> 00:46:46,740 | What's the right order block? How do I pick the right order block? I just answered it. What is an order block, it's a change in the state of delivery, the |
| 271 | 00:46:46,740 --> 00:46:58,170 | algorithm changes its state of delivery. As soon as we get below this candles open, the market starts delivering sell song, and then it breaks this swing low. |
| 272 | 00:46:58,320 --> 00:47:09,060 | So now we have changed gears internally. Any rally after that is just setting him on our run to go lower. So Lord, this is a suspect rally. Okay, so this is |
| 273 | 00:47:09,060 --> 00:47:17,160 | an intermediate term high, swing high, because it has the imbalance, it should not trade higher than at high. That's the reason why I'm telling you, you can |
| 274 | 00:47:17,160 --> 00:47:25,470 | put your stop loss there, see how the rules are coming together. I'm not complicating it. I'm literally telling you everything I've taught. And I'm |
| 275 | 00:47:25,470 --> 00:47:35,760 | putting it into the chart. Everything was said before it happened. And here it is. It's the framework. It's the logic, and I'm teaching you with great detail |
| 276 | 00:47:35,940 --> 00:47:43,590 | that you otherwise would have never learned. So I'm taking you in overtop the chart, giving you the framework and giving you the logic, I'm giving you the |
| 277 | 00:47:43,890 --> 00:47:53,160 | what if this, what if that conditions, okay, I'm telling you how to negate certain order blocks that you would otherwise expect to see a trade to because |
| 278 | 00:47:53,460 --> 00:47:59,100 | of different YouTube channels or other people trying to teach my stuff and they don't know what you're talking about. Okay, they have no idea what we're doing. |
| 279 | 00:48:00,720 --> 00:48:09,210 | This setup here gives us a nice opportunity to get short. So you can be a seller here want to limit entry. So you place a limit order here and you just walk away |
| 280 | 00:48:09,210 --> 00:48:20,670 | from it, you let it go. Now what happens if it doesn't fill you by 1130 Hold the order. It's it don't put you good till cancel, just pull it because you want to |
| 281 | 00:48:20,670 --> 00:48:30,570 | be entering on the day that it creates this because relatively equal highs. If it doesn't drop off, it could come up in a time of day where you don't really |
| 282 | 00:48:30,570 --> 00:48:38,790 | want to be there. And it could fill you and then keep on running and take out the relative equal highs at a deeper pass and and stop you out. So it's |
| 283 | 00:48:38,790 --> 00:48:48,060 | important to know why the kill zones are their kill zones are when you determine your entry and you place your orders and you walk away. You don't need to have |
| 284 | 00:48:48,060 --> 00:49:00,090 | your entry filled inside that kill zone window, your order idea and your order placement needs to be considered at that time. If you can't derive a order |
| 285 | 00:49:00,090 --> 00:49:10,620 | placement for setup, or trade entry, by that time, you have nothing to do and that's it. You've you've basically taken no risk on and you have to wait to the |
| 286 | 00:49:10,620 --> 00:49:24,480 | next trading opportunity or trading day. And the market obviously starts to break lower and then trades to it here at 245. |
| 287 | 00:49:26,010 --> 00:49:43,320 | So at 245 it fills it and that's the end of that. So not bad it's 1020 3040 pips, so you go 40 pips, you don't get the very highest high, and it ultimately |
| 288 | 00:49:43,320 --> 00:49:56,670 | goes a little bit lower, who cares? If you've structured a trade, that makes sense. And it's just a really nice run up in there. And everything's delivered |
| 289 | 00:49:56,670 --> 00:50:06,930 | on the basis of the logic and the elements. I'm teaching you In this YouTube channel, and you can't argue with it, it's, it's obvious, it's so plain to see |
| 290 | 00:50:06,930 --> 00:50:15,060 | how these markets are being delivered. And if you're one that likes to argue and say there isn't an algorithm, or if you say that these concepts don't work and |
| 291 | 00:50:15,060 --> 00:50:24,930 | all that stuff, it's because you want some excuse why you can't do it yourself. And I don't want any of you to feel that way. Okay, I don't get a high or, you |
| 292 | 00:50:24,930 --> 00:50:36,750 | know, get my rocks off because people stumble, and not do well with this, because I know why they're not doing well. You're not doing the work that's |
| 293 | 00:50:36,750 --> 00:50:49,020 | required. That means going through your charts, and doing what I just did here every single day. And being passionate about it, looking at what it is that has |
| 294 | 00:50:49,020 --> 00:51:00,060 | been shown in price action, what is it doing? What is it not doing? The things I've taught you in this lesson tonight is, in my mind, it's charter level |
| 295 | 00:51:00,240 --> 00:51:10,320 | teaching. It literally is something that I would generally reserved for charter members only. That means the people that had been with me for a year or more, |
| 296 | 00:51:10,560 --> 00:51:25,020 | and they're under my tutelage in my private community. So this is a lesson that literally would come from that type of student level. But I'm applying it to |
| 297 | 00:51:25,020 --> 00:51:37,950 | what you're learning with this model. It's applicable to Forex, it's applicable to bonds, it's applicable to gold is applicable. But let me put this across a |
| 298 | 00:51:37,950 --> 00:51:50,220 | lot of people also saying can you show it in gold? Gold is one of those markets, that is an event driven market. Okay. And what that means is, it usually |
| 299 | 00:51:50,220 --> 00:52:04,230 | requires some kind of geopolitical or something crazy, causing it to move. Otherwise, it's highly manipulated. There's a lot of stop hunts and then |
| 300 | 00:52:04,230 --> 00:52:13,440 | consolidations, it's very frustrating. Okay, it's not a it's not a market, I believe that someone should be aggressively short term trading. I don't think |
| 301 | 00:52:13,440 --> 00:52:22,410 | that's the ideal market. There's plenty other markets out there that you can do that with, and have better consistency in longevity. Now, am I saying there |
| 302 | 00:52:22,410 --> 00:52:30,690 | aren't people out there that are making money consistently in gold? Now, I'm not saying that I'm saying, because I'm speaking to people with the expectation that |
| 303 | 00:52:30,690 --> 00:52:37,980 | you're just now learning how to do this. I'm aware that there's a lot of you that are veterans that that have been trading longer than the average person |
| 304 | 00:52:37,980 --> 00:52:47,730 | coming to my YouTube channel. But I have to speak in a language that is palatable for a new viewer. Otherwise, I'm going to speak to and this might be |
| 305 | 00:52:47,730 --> 00:52:55,950 | too lofty for a new viewer anyway, but it hopefully it will intrigue them to see that there's a rhyme and reason to everything I'm teaching and they repeat. It |
| 306 | 00:52:55,950 --> 00:53:02,970 | keeps happening every single day, the signatures repeat. So the question is going to be is, |
| 307 | 00:53:04,620 --> 00:53:11,490 | what are you going to do with this information? Are you going to just say, Okay, well, this is great. But is this too much work. So I'm going to look for |
| 308 | 00:53:11,490 --> 00:53:19,020 | something else that gives me a Moving Average crossover, or some kind of a bell and whistle to put things on my chart to tell me what to do. And then you're |
| 309 | 00:53:19,020 --> 00:53:30,030 | basically creating a religious trading style, because you're trusting something other than price. Because what have I shown you here? Just price, there's no |
| 310 | 00:53:30,030 --> 00:53:39,090 | indicators here. I'm only putting these areas in here with this rectangle to highlight an imbalance. I don't have these on my chart. In time, you won't |
| 311 | 00:53:39,090 --> 00:53:45,750 | either. But in the beginning, while you're learning, it's important to annotate your charts so that way, when you log them in your study journal, that way, at |
| 312 | 00:53:45,750 --> 00:53:54,630 | the end of the week, you go back and look at all the intraday price action, then you look at how the weekly chart worked within that whole panoramic view of |
| 313 | 00:53:54,630 --> 00:54:04,590 | intraday daily price action, how does it all fit together? And by doing that, you're literally getting snapshots of every individual day, then the daily chart |
| 314 | 00:54:04,590 --> 00:54:13,440 | and the weekly chart and how it fulfilled its entirely weekly range. When was the high form? When was the low formed? What was the biggest day of the week? |
| 315 | 00:54:13,620 --> 00:54:22,260 | What was the framework around that biggest day of the week of movement, and then also break down? Obviously, like we're showing you here were trade setups, it |
| 316 | 00:54:22,260 --> 00:54:30,840 | doesn't make a difference if you didn't trade it. Everything anybody ever learns is always done. By hindsight. You want to be a doctor or a surgeon, guess what |
| 317 | 00:54:30,840 --> 00:54:37,740 | you're doing? You're working in hindsight, you're studying medical journals that about things that took place that you were not there? Okay, you're studying |
| 318 | 00:54:37,740 --> 00:54:48,000 | hindsight. Don't let these goobers out there, try to discourage you from studying because I'm teaching you how you are going to get better at this. You |
| 319 | 00:54:48,000 --> 00:54:56,070 | do what I just showed you how to do right here. And you do it every single day. You're gonna develop your own style of keeping notes in your charts. I'm not |
| 320 | 00:54:56,070 --> 00:55:10,680 | going to do that here because I don't want to make a By example, and feel like you have to do exactly what I said, Okay? What I mean by that, it's to me, it's |
| 321 | 00:55:10,680 --> 00:55:18,240 | fascinating to see people comment in the comment section of the videos, or they'll send me an email. Or I'll listen to people that obviously are trained |
| 322 | 00:55:18,300 --> 00:55:29,430 | under me, and they make videos on YouTube, I can hear my fingerprints or read my fingerprints in the way they talk, they'll say certain things, certain words, |
| 323 | 00:55:29,550 --> 00:55:43,770 | certain expressions, I can, I can see my own fingerprints on it. This part, I always leave empty. And I do the same way of teaching, even in a private group, |
| 324 | 00:55:44,070 --> 00:55:53,370 | because I never show them annotations outside of the things I'm showing, because over here, you might write an observation about something that you may want to |
| 325 | 00:55:53,370 --> 00:56:03,810 | further investigate, that I might not even touch on in this discussion or lecture. But it's important to you. So you use the space in your chart to write |
| 326 | 00:56:03,810 --> 00:56:11,070 | those things down. And then you come back to that chart on Saturday, at the end of the week or Sunday, if that's the day, you're going to do it on. And you |
| 327 | 00:56:11,070 --> 00:56:19,470 | revisit the entire week, and you walk through the entire week of how it's delivered, how many pips did it move, and how much risk would have been incurred |
| 328 | 00:56:19,470 --> 00:56:32,220 | in the trade. So all those things work towards a model that you'll grow accustomed to trusting, because you'll have back data. And you'll have examples |
| 329 | 00:56:32,220 --> 00:56:42,810 | that you've trained yourself to see over time. And by doing this, your psychological makeup as a trader will be formed with these things in mind. So |
| 330 | 00:56:42,810 --> 00:56:52,800 | when we when you're watching price action, it'll leap off the chart when it's forming. And you'll remember something you saw hundreds or 1000s of times before |
| 331 | 00:56:52,830 --> 00:57:01,650 | that generally repeat over and over and over again, does every single day look exactly like this? No. But there's a lot of similarity to the things I'm showing |
| 332 | 00:57:01,650 --> 00:57:14,850 | you here that repeat. So it's, it's a matter of knowing what you're looking for. If two bears are walking in the snow, one's younger than one's older, and |
| 333 | 00:57:14,850 --> 00:57:23,490 | they're walking in the snow, will both footprints look exactly the same? No. But you'll recognize they're both bear prints, and you'll recognize which one's |
| 334 | 00:57:23,490 --> 00:57:26,580 | larger or older, and which ones younger. |
| 335 | 00:57:27,390 --> 00:57:37,110 | So that's what it's like when you're looking at these signatures and price action, they are generally very close to one another in terms of repeating the |
| 336 | 00:57:37,110 --> 00:57:46,860 | same type of way. But they're not going to be so identical, that they're indistinguishable to the next one, like, you'll be able to see that that's a |
| 337 | 00:57:46,860 --> 00:57:55,440 | different day of trading. But you'll still recognize these repeating phenomenon that is so telling in the marketplace. But you can't fully appreciate it right |
| 338 | 00:57:55,440 --> 00:58:03,750 | now. Because you're only now just becoming introduced to it. And maybe you've watched some of my videos, maybe you watch all my videos. And you see when I do |
| 339 | 00:58:03,750 --> 00:58:10,890 | this and it resonates with you, you're like, Man, I can I get it because he's shown it to me. But then you go out into the chart and you try to do it. And it |
| 340 | 00:58:10,890 --> 00:58:21,930 | just feels like your chart doesn't is organized, or it's not so obvious to you what you're looking for. That's normal. That's how it was for me for a long time |
| 341 | 00:58:21,930 --> 00:58:31,890 | in the 90s. For a long time, I struggled and floundered trying to figure out what I'm supposed to be looking for. I'm teaching you the things that repeat. |
| 342 | 00:58:32,070 --> 00:58:41,640 | Your job is to keep going into the chart, annotating them and keeping a running log a study Journal of what the price action has done in what you're observing. |
| 343 | 00:58:42,300 --> 00:58:50,370 | You can't get hurt, because it's already happened, the moves already happened. So you're studying it. So what you're creating is the greatest technical |
| 344 | 00:58:50,370 --> 00:58:58,800 | analysis book that you're ever going to own. And you're doing it in your own words, with your own work. Because when you buy a book, what are you getting, |
| 345 | 00:58:58,800 --> 00:59:06,780 | you're getting snapshots of something, they're saying, this is the important thing about this particular chapter or the theme of this particular book. I'm |
| 346 | 00:59:06,780 --> 00:59:15,690 | showing you how you need to stop buying books, but there is no books out there except for the ones I've put in that one video that's in my library. Honestly, |
| 347 | 00:59:15,750 --> 00:59:24,780 | that's it no other books are necessary. In trading, in my opinion, it's just it's the same garbage that's repeated and rehashed and people just trying to do |
| 348 | 00:59:24,780 --> 00:59:37,140 | a cash grab. You're not gonna learn anything except for bad habits and flawed logic. Now, when you've created a study journal with 1000s of examples, and |
| 349 | 00:59:37,140 --> 00:59:50,640 | you've been doing it for years, you're going to be astonished of how much of a technical analyst you are years from now, and you'll be able to see a lot more |
| 350 | 00:59:50,640 --> 00:59:58,770 | setups that you just don't see. Like there's several opportunities in this timeframe, or this fractal here. On a five minute chart. There's lots of little |
| 351 | 00:59:58,770 --> 01:00:06,210 | trades in here. I'm not going to go through and pick them all out, because this is going to create 1000 different questions. And you're going to miss or |
| 352 | 01:00:06,210 --> 01:00:18,990 | overlook the very thing I've shown you in this lecture. But this is a model that obviously works in this timeframe. In this pair, it's in forex, it's not highly |
| 353 | 01:00:18,990 --> 01:00:34,200 | specific only to futures. Notice that it's pretty clear in it. It may not have been clear before I walked through it with you. But you learned, hopefully a |
| 354 | 01:00:34,200 --> 01:00:41,550 | great deal of things tonight, you learned a little bit about what are blocks, what makes an order block based on the fair value gap? How do you differentiate |
| 355 | 01:00:42,630 --> 01:00:50,280 | how you look at the order block? How do you break it down? How do you invalidate the certain parts of the order block? How do you know it's not going to go in |
| 356 | 01:00:50,280 --> 01:01:00,660 | the upper half of the order block or the last up close candle before it goes down? I taught that tonight. So hopefully this has been insightful to you. And |
| 357 | 01:01:00,660 --> 01:01:06,120 | obviously we'll be back out again next Tuesday. Until I talk to you then enjoy your weekend and be safe |