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ICT YT - 2022-04-28 - Smart Money Concepts and Chaos.srt

Last modified by Drunk Monkey on 2022-04-30 15:53
1 00:00:06,000 --> 00:00:19,620 ICT: Alright guys, so this video is going to be a little bit different, obviously, new things. When YouTube for the last six months or so may actually a
2 00:00:19,770 --> 00:00:37,530 little bit longer than six months, I think since last March of last year, there's been this growing trend of who can call out the next forex trader, okay,
3 00:00:37,950 --> 00:00:51,960 or expose the forex trader on YouTube that's getting the most attention. And I'm not exempt in that. I've had a couple people over the last few years take shots
4 00:00:51,960 --> 00:01:02,790 at me and they failed, obviously. But the point is this When someone's hot, okay, when someone has something that people are interested in, and it's not
5 00:01:02,790 --> 00:01:15,000 just for exits, anything really, the name of the game is clicks, okay, the traffic. And if people can't get traffic, because of their own skills, they'll
6 00:01:15,000 --> 00:01:23,850 do whatever, they can start dumpster fires, okay, just to get someone to turn their head. Things are tough right now people are trying to get ad revenue, and
7 00:01:23,850 --> 00:01:34,500 I get it. Okay. With that said, and then there's a small select group of people on YouTube that are doing those types of, in my opinion, low brow attempts, just
8 00:01:34,500 --> 00:01:41,460 to be significant. And they know who they are. And you know who I'm referring to, they're not even worth mentioning in the video. But then there are other
9 00:01:41,460 --> 00:01:57,720 YouTubers that are not really trying to make a stir of anything, but they do communicate their opinion. One, for instance, is rocks, FX, okay. Or rock FX is
10 00:01:57,720 --> 00:02:10,260 something that effect I saw someone share a post he made on Instagram. And it was talking about Smart Money traders. And right away, whenever I see that,
11 00:02:10,500 --> 00:02:21,600 okay, I take that personal, even though I know there's a bunch of Yahoo's out there that have taken my stuff and bastardized it, and literally used it to draw
12 00:02:21,630 --> 00:02:30,390 more attention to materialism, to image based marketing, I don't not into that, I've never done that. And I probably got more money than all of them together.
13 00:02:31,110 --> 00:02:46,020 The point is, that that is a toxic approach to building a brand. Those individuals ask for that kind of drama. Because it's many, many times it's just
14 00:02:46,020 --> 00:02:58,200 false advertising, it's fake, they usually can't trade. And they use what I have pioneered, and brought to the community at large and used it in a way to kind of
15 00:02:58,200 --> 00:03:09,930 like use it as a weapon. Okay, the club other traders over the head. And when I was on Twitter years ago, I used that attempt to make a splash. And it worked.
16 00:03:10,290 --> 00:03:23,910 It was like the WWF, you know, approach to ordination, I guess they call themselves there'll be W E now, but the point is, drama draws attention. And in
17 00:03:23,910 --> 00:03:34,230 2016, when I started a business mentoring, I moved away from that style of getting attention for marketing purposes, because it would create viral
18 00:03:34,230 --> 00:03:43,170 situations. And I did everything through Twitter, it caused all those types of things, and it created a crowd, I can draw a crowd really easy. And a lot of
19 00:03:43,170 --> 00:03:54,090 people have used that model, and to sometimes really extreme levels, making up nonsense, you know, there's really stupid things that are being portrayed around
20 00:03:54,090 --> 00:04:02,010 the internet about me, and it's all nonsense. But I get these people, they need to make money, they got to pay for the poll, they got to do things that earn
21 00:04:02,010 --> 00:04:10,830 income because they can't really trade. I get that. But then there are individuals, like I think rock effects, you know, he made a comment about Smart
22 00:04:10,830 --> 00:04:22,230 Money traders and saying that market structure was what it was all about. When I replied and said market structure isn't really what it's all about. I didn't
23 00:04:22,230 --> 00:04:33,150 really think about it too much. But now looking at another YouTuber, Trader Nick, I've watched the reply or not what's it called? A reaction video by
24 00:04:33,150 --> 00:04:43,770 another YouTuber. It popped up in my suggestions this morning around 430 Quarter five, my local time and I started watching it and the guy was listening to Nick
25 00:04:43,920 --> 00:04:55,230 open up his video saying that Smart Money concepts is a myth. And right away that made me stop watching the reaction video guy and go right to Trader Nick's
26 00:04:55,260 --> 00:04:57,000 channel and listen to his video
27 00:04:58,470 --> 00:05:07,560 and I was expecting it to be You know, harsh, brutal, okay, that's what the words that have been tossed around by other people in his comment section. And
28 00:05:07,560 --> 00:05:16,260 he has since obviously taken that video down on me to mention that I was gonna actually talk about it tonight. And I guess because of my reputation in the
29 00:05:16,260 --> 00:05:26,820 past, being someone that would literally be in someone's face saying, let's see, let's see what you can do. Okay, I've moved away from that type of approach. And
30 00:05:26,820 --> 00:05:38,880 I kind of like want to be the middle aged man that I really am. I've settled down a lot since 2016. So I didn't see anything in trade or Nick's video that
31 00:05:38,880 --> 00:05:49,740 wanted him to make it private. And I think, understand why he did it, because he knows that wherever I go, it's like a hurricane. Okay, it's, there's a lot of
32 00:05:49,740 --> 00:05:59,760 people that are very passionate about what it is I taught, and what I do. And in the beginning stages, when I was introducing it to the community at large, I use
33 00:05:59,760 --> 00:06:12,180 this gladiator approach where I was like, come at me, whoever out there thinks they can trade better than me, let's go. Okay. And largely, it goes unanswered.
34 00:06:13,170 --> 00:06:23,310 They don't want to go into a reputable account, where it's audited, and those types of things. So that kind of like weeds out all the talkers. Apart from
35 00:06:23,310 --> 00:06:36,450 that, I don't really beat my chest and do anything to try to draw up in drama. But next video, was really accurate in a lot of ways, because the smart money
36 00:06:36,450 --> 00:06:50,070 concepts that I've introduced to the trading community, they have been used in a light that brings a lot of negative well, energy in it makes it feel like, you
37 00:06:50,070 --> 00:07:01,860 know, that's the crowd that you need to be a part of. And unless you're not in that crowd, or using what I taught, you can't be profitable. When I've said many
38 00:07:01,860 --> 00:07:10,920 times that there's a lot of ways to skin this cat, and you can make a lot of money, and never even use an order block. Never even use a breaker, okay, never
39 00:07:10,920 --> 00:07:19,770 even use a fair value get that I've been teaching now on my YouTube channel. There's lots of ways to make money, folks, the main thing is being profitable as
40 00:07:19,770 --> 00:07:30,210 a money manager. And you can flip a coin, and be profitable doing that if you can manage money correctly. So I kind of like want to open this video up with
41 00:07:30,210 --> 00:07:44,310 that reminder to folks, I know some of you are extremely passionate, and it's like a tribe mentality. And I am guilty of fostering that idea. When I was on
42 00:07:44,310 --> 00:07:55,950 Twitter, I wanted an army of people that would literally go out there and cause a ruckus to just get people turning their heads. And that way they can see in
43 00:07:55,950 --> 00:08:03,420 the charts and see what we do, and how it's completely different to anything else out there, despite what everybody else likes to say, because there's
44 00:08:03,420 --> 00:08:17,820 nothing like Wycoff. And it's nothing like supply and demand. These ideas, unfortunately, have mutated into extremes for the sake of drawing in drama. Now,
45 00:08:18,270 --> 00:08:28,980 if that's what you want to do, just understand that that's going to also bring a lot of negative views that stay with you for a very long time. And if you leave
46 00:08:28,980 --> 00:08:41,400 a bad taste and viewers mouth, especially on mediums like Twitter, or on YouTube, they like to go around and spread it. In their opinion, if it's bad,
47 00:08:41,730 --> 00:08:49,800 they'll create additional accounts that make it look like yours more people that have that same opinion. I have that, okay, and everybody else that has success,
48 00:08:49,800 --> 00:08:59,460 they have haters, they have things like that. So I wanted to go on record and really agree with what trader Nick was saying in his video, because there's a
49 00:08:59,460 --> 00:09:08,550 lot of things that these people claim when they say they use my concepts. And a lot of them don't even credit me like they try to use other things to avoid it.
50 00:09:08,550 --> 00:09:20,070 But they're taking what I've created and authored and then go around beating other traders over the head saying, you know, you suck, you can't trade. I do
51 00:09:20,070 --> 00:09:33,960 something that's elite, and you aren't in this clique, you're not in this inner circle, okay. And there's a lot of wealthy traders out there that have never
52 00:09:33,960 --> 00:09:46,350 done anything with what I've taught. And there's a lot of wealthy traders that do what I teach. So you have to be mature enough to understand that. Not
53 00:09:46,350 --> 00:09:51,930 everyone's going to receive you because you come out there and like a gladiator
54 00:09:53,280 --> 00:10:02,190 that point is missed by a lot of the younger crowd because they want to go out and they want to make a in Have, they want to draw attention to themselves, they
55 00:10:02,190 --> 00:10:13,410 want to Instagram campaign. And I've never really pushed it that far. I just basically said, Whatever you have out there, let me see you go against what I
56 00:10:13,410 --> 00:10:25,920 got. I share my results, I share my stuff. And I try to do it in a modest capacity, where I'm not trying to make myself look like anything. But the person
57 00:10:25,920 --> 00:10:37,230 I am. This is how I am in real life. I'm not some Instagram celebrity kind of guy. I'm not out there trying to draw attention to myself, for the sake of
58 00:10:37,500 --> 00:10:47,760 image. I've always been against that. But in trading, and the skill sets that I've been able to acquire, I am absolutely willing to showcase those types of
59 00:10:47,760 --> 00:10:57,540 things. And I think traders need to appreciate other disciplines when there are people out there obviously willing to share what they do. And trader Nick
60 00:10:57,540 --> 00:11:09,480 obviously shows his results. And kudos to him. Because there's a lot of people that don't even do that. Nick, and you're listening. Okay, I meant what I said
61 00:11:09,480 --> 00:11:18,270 here, I wasn't gonna come at you in it probably was like, oh, no, here it comes. It's not, it's not like what you imagined, obviously, I think that the video
62 00:11:18,270 --> 00:11:29,280 should be brought back up, because I agree with it. That some of the things that you said in there were funny, too, it needed to be said, because some of these
63 00:11:29,280 --> 00:11:38,100 young guys out there literally go around carrying on, like, they have everything figured out. But yet they don't have any proof they're doing anything with it.
64 00:11:38,400 --> 00:11:49,650 And you have to be mature enough and responsible enough to conduct yourself in a way that is not only making yourself useful to the community, why should anybody
65 00:11:49,650 --> 00:11:57,330 listen to you. But if you're out there bashing constantly, or pointing fingers at someone and trying to say this person can't do this, and this person can't do
66 00:11:57,330 --> 00:12:06,720 that, while you're not doing anything to show validity to what it is that you promote or stand on that ground that this is this is what you do. This is your
67 00:12:06,720 --> 00:12:17,340 discipline in trading. And you might think it's superior. It might be for you, and other disciplines of trading in their style trading, may not even interest
68 00:12:17,340 --> 00:12:32,250 you at all. But you don't have the ground to stand on when you say that guy stuff, or that Gauss stuff sucks. And I wouldn't ever do that. Now, if you're
69 00:12:32,250 --> 00:12:41,820 asked that I think yeah, you know, if, Hey, would you use this guy's discipline? Or would you use this person's approach to trading? And if not, why? In those
70 00:12:41,820 --> 00:12:52,860 instances? Yes, I think then it's warranted why you wouldn't subscribe to those disciplines. I do that, okay. But sometimes, you know, and I've done this in the
71 00:12:52,860 --> 00:13:06,840 past, I had gone to great lengths to share my disdain for other retail ideas, because I've done all that stuff. But I'm aware and cognizant, the very fact
72 00:13:06,840 --> 00:13:16,050 that I don't like it isn't justification for someone else not using it. Because other people actually make money, doing the stupidest things I've ever seen in
73 00:13:16,050 --> 00:13:25,620 my life. They believe in moon phases. Okay, I talked about that once in the book by Larry Williams 1970s, he wrote, and I discount that I tell everybody, when I
74 00:13:25,620 --> 00:13:35,790 tell him to buy the book, to this regard, that I don't think there's any validity to it. But that's my opinion. Every one of us has an opinion. But your
75 00:13:35,790 --> 00:13:46,470 opinion, shouldn't be thrust down the throats of others. Because you're passionate about it. Just because you feel passionate about your idea of what
76 00:13:46,500 --> 00:13:58,800 should be or shouldn't be done in the marketplace. doesn't give you the right to stand on this pretend moral high ground where everyone else is beneath us.
77 00:13:59,160 --> 00:14:13,380 Because listen, if you think that you're better than everybody else, and you're acting like an ogre, that in itself cancels your whole campaign right there.
78 00:14:14,520 --> 00:14:24,840 Because if you really were as good as you want to pretend that you are and you're using Smart Money concepts, or you're using like golf, or you're using
79 00:14:24,840 --> 00:14:35,160 Elliott Wave or if you're using something else out there, talking about it and making a big stink about it. That's not proving it. That's this showing low
80 00:14:35,160 --> 00:14:47,670 class. And in this medium, we have a wonderful opportunity to be a community that number one, we can recognize skill set in even though we may not trade like
81 00:14:47,670 --> 00:14:51,810 that other person or even agree with the logic behind it.
82 00:14:52,980 --> 00:15:03,870 We can appreciate their ability to do what they're doing. And that's that's the direction I've tried to take since 2016. But videos like this isn't going to
83 00:15:04,050 --> 00:15:11,070 change the idea that some people out there just want to draw attention to themselves, they want to create a train wreck. That's always going to be the
84 00:15:11,070 --> 00:15:27,330 case. You either give them time and give them space to do it. Or you starve them, and don't even address it. And that's how I do it. But anyway, Nick, I
85 00:15:27,330 --> 00:15:36,930 would like to see, but the ViewBag personally, but if you choose not to, I understand, okay, but once these types of things happen, you're gonna see people
86 00:15:36,930 --> 00:15:45,750 still come in and make comments. Okay, they're going to make comments that are unwarranted. And I don't want any of you that follow me to feel like, that's
87 00:15:45,750 --> 00:15:55,200 something that I would cosign. And I was I don't think anybody should be in trader Nick's comment section, railing, about his opinion about Smart Money
88 00:15:55,200 --> 00:16:05,430 concepts, if he chooses not to use them. Who cares? Does it change your outcome? Does it make you less profitable or more profitable, because trader, Nick, or
89 00:16:05,610 --> 00:16:14,460 somebody else does or doesn't use the same things you're doing? If no one watched my channel, and no one subscribed to the things I'm teaching, and it
90 00:16:14,460 --> 00:16:22,440 isn't going to change me making money with these concepts. I'm going to do it regardless of whether you like what I teach or whether you love what I teach.
91 00:16:23,160 --> 00:16:32,010 But I'm trying to be a voice of reason. Not only in what I teach, but also but also in the direction of these young people that are out here today, trying to
92 00:16:32,010 --> 00:16:42,450 do things all the wrong way. Okay, so anyway, I just want to open the video with that. And hopefully, if you're out there, and you're using my stuff, whether you
93 00:16:42,450 --> 00:16:54,030 want to credit me or not tone it down, because nobody's impressed. Alright, so let's go over to what I want to talk to you about today. I shared a couple
94 00:16:54,030 --> 00:17:13,410 things this morning. And let me clear all this off here. And I'll take this bit of business off or add it back in a minute or two but Alright, so here's the E
95 00:17:13,410 --> 00:17:27,600 Mini s&p futures contract for June delivery. 2022. And I was at the dealership this morning, getting my service on, Corbett done. bored out of my mind. And I
96 00:17:27,600 --> 00:17:37,290 figured I'd check up take a look at the E Mini s&p. Now mind you, I have a Galaxy Note 10. So it's a little bit of a big phone. I don't really like
97 00:17:37,290 --> 00:17:45,360 carrying it around now. But I'm thankful that I had it because otherwise I would have been bored and I mind. Instead of watching the TV show they had on in the
98 00:17:45,360 --> 00:17:56,010 lobby while I was waiting for my oil change. I want to check out the YouTube comment section and then I'll take a look at the email s&p and NASDAQ. We're
99 00:17:56,010 --> 00:18:05,550 getting ready to open up at 930 and my appointments at 930. So I missed the very opening. And then once I got seated and they had my car and I started working on
100 00:18:05,550 --> 00:18:18,450 it. I pulled up my phone I was taking a look at what was transpiring in Spoos. Okay, so suppose this is like a little slang term. It's always been used for s&p
101 00:18:18,450 --> 00:18:25,650 500 trading skirt. Can you tell you see that real quick? I posted
102 00:18:30,960 --> 00:18:44,580 this chart here asked, What do you see? Now this is a drill I usually do. I used to do it on Twitter, as well. But what I was asking my students is what do they
103 00:18:44,580 --> 00:18:52,110 see here? And this is the opening and they started rallying it ranted about relative equal high. So there's buyside liquidity resting above that. What has
104 00:18:52,110 --> 00:19:07,170 my bias been for equities? Bearish, okay. I mentioned that when we're bearish, it's likely to create a run on buy stocks or buy side liquidity prior to a
105 00:19:07,200 --> 00:19:18,420 respectable decline that's tradable. What do I mean by that? These BizStats they were purged when the market rallies up into that when you see this, okay? When
106 00:19:18,420 --> 00:19:32,730 you're talking to books and you see types of moves like this, it's really hard to communicate that in a way where seeing it happen live. It's scary, you don't
107 00:19:32,730 --> 00:19:40,050 want to short it. Many of you would look at that and say there's no way I'm going to step in front of that and go short. When in certain instances, it's
108 00:19:40,080 --> 00:19:50,850 really the best thing to do if you understand what you're looking for, and I'm gonna kind of like flush that out here. On the low end here, we have this low
109 00:19:50,850 --> 00:20:04,890 here. So there's sell side below here and buy side above here, so that's liquidity. Okay, so I'm gonna Talk about Smart Money concepts, okay, which is a
110 00:20:04,890 --> 00:20:14,700 whole life here. And I'm going to flesh out what it is I did this morning, what I was trying to draw your attention to, and when I executed on, and it was a
111 00:20:14,730 --> 00:20:27,810 paper trade, why paper trade number one, I was sitting in a car dealership, and I only had my Galaxy Note 10 I'm not going to log into TD Ameritrade, I'm not
112 00:20:27,810 --> 00:20:38,370 going to trust that the connection stays that good. And if something happens, and I'm caught off, it's been very hard for me to manage it. And plus, I'm stuck
113 00:20:38,370 --> 00:20:49,290 there, they have my car. So I can't race back home, getting break the speed limit, to just manage the position that I was losing control of because I was
114 00:20:49,320 --> 00:20:58,470 using my smartphone. So I made the best use of my time. Plus, I use it as a way of teaching you all this morning. So now I'm going to amplify that lesson here.
115 00:20:59,340 --> 00:21:09,840 So we're looking at the five minute chart. And I'm gonna flesh out some things here so that we can see it kind of like follow along. Now I could have done all
116 00:21:09,840 --> 00:21:18,960 this stuff ahead of time, immediately, and it's going to bother somebody that it isn't already there. So I can get right to it and do like a two minute video.
117 00:21:20,010 --> 00:21:27,720 But I don't like two minute videos, because I can't communicate the most important factors inside of a very short span of time. And anyone that really
118 00:21:27,810 --> 00:21:37,050 hangs on that expectation that hey, look, you know, once you get to the point, the point is in the details. So if you want to learn how to do this stuff, you
119 00:21:37,050 --> 00:21:45,480 need to learn how to do it with all the details. You want to learn things halfway, then you're gonna get halfway results. Alright, so here is the opening
120 00:21:45,510 --> 00:21:55,920 at midnight. This is what I've been teaching y'all. Right there. And then it's a very light line, but it's enough to communicate the idea. So overall, we had a
121 00:21:55,920 --> 00:22:05,610 consolidation in here the market drops down in Monday and creates this intermediate term low. Then we rally up ahead of 5am. And then we consolidate
122 00:22:05,610 --> 00:22:20,190 going into seven o'clock in the morning then we have a retracement lower drops down into post 830. And here's 830 right there. Okay, so that candle right there
123 00:22:21,180 --> 00:22:32,580 is 830 the opening price on that. Drop out that out in time. Are we rallied above that. Yes, we are also above the opening price at midnight. So we are in a
124 00:22:32,580 --> 00:22:42,360 Premium Plus it rallies above the relative equal highs here so there's my stops resting right above here. So don't think about what's happened. We have a market
125 00:22:42,360 --> 00:22:52,920 that we've been bearish on where you're expecting lower prices on the index futures, Emini, s&p, NASDAQ, futures and Dow we don't just simply go short,
126 00:22:52,920 --> 00:23:05,160 because we want to be short, we have to wait for the market to go into a premium premium is where the markets going above its recent dealing range equilibrium or
127 00:23:05,160 --> 00:23:17,190 it runs into by side liquidity by sub liquidity use above relative equal highs. So retail ideas would see this as a short term area of resistance. What I train
128 00:23:17,190 --> 00:23:25,350 you to see is this is exactly where Smart Money wants to see price go.
129 00:23:26,940 --> 00:23:39,690 Once it does that right there, when it's rallying highlight that it's taking in all the pending buy stops. Why is your buy stops there? Because traders they
130 00:23:39,690 --> 00:23:49,350 want short. They are protecting their short with a buy stop there. Traders that don't know necessarily what to do. They'll see this area as resistance but hey,
131 00:23:49,350 --> 00:23:57,150 if it goes up and breaks that they're a breakout trader. So what do you want to do they want to buy on a breakout. So that creates this pool of liquidity for
132 00:23:57,150 --> 00:24:13,740 the basis of buy side liquidity. So we're bearish okay as smart money concept traders, okay or mind work. When it rallies above that, that is taking in a
133 00:24:13,740 --> 00:24:28,230 flood of buy orders. All these buy stops become a surge of market orders of buyers flooding the marketplace, which is exactly what smart money wants,
134 00:24:28,290 --> 00:24:42,420 because they want counterparties to sell short above at a premium high price. Now, here's where this idea of smart money really resonates with people that
135 00:24:42,450 --> 00:24:55,380 know what's going on. This rally up here. This was not the result of buyers. I know some of you like to believe that stuff because it's talked about in books
136 00:24:55,410 --> 00:25:05,070 and there's people that have traded and they say this is what happens. It's Buying and selling pressure, it is absolutely not what goes on. Okay. This is an
137 00:25:05,070 --> 00:25:16,620 algorithm running price. And it starts spooling. No matter how many people come in and sell short, this is still going to go up here. That's the way it is.
138 00:25:16,830 --> 00:25:24,960 Okay. It's engineered. It's designed, and it's following AI. Artificial Intelligence is what's running these markets today's, and you're not going to
139 00:25:24,960 --> 00:25:35,040 argue your way out of it. There is no absolute answer, that will change my view on it. Because you don't know where I came from. You don't know what I've been
140 00:25:35,040 --> 00:25:47,730 trained in. And I prove this every single week, buying and selling pressure, that is a myth. It is a myth. These markets are absolutely controlled all times.
141 00:25:48,210 --> 00:26:00,960 And sometimes they are manually intervened. So you'll have an episode like when the euro and the Swissy were de pegged. That was a manual intervention. That was
142 00:26:00,960 --> 00:26:11,160 not fat fingering a trader entering a big order that was not algorithmic that was the central bank's immediately repricing. And there's nothing you can do no
143 00:26:11,160 --> 00:26:20,910 stop loss can protect you, you are getting ruined. In these instances, there's this small little time periods where the markets is simply does something that
144 00:26:20,910 --> 00:26:30,600 it's designed and programmed to do, it's going to go up here, because when price wasn't moving sideways like this, the algorithm was holding price like that.
145 00:26:31,530 --> 00:26:47,880 It's operating on time, and price. So when it creates these little areas of small, smooth resistance levels, small smooth support levels, the market finds a
146 00:26:47,880 --> 00:26:58,410 way always to come down and up to those areas and clean them out. Once we have a opinion, or a bias that the markets likely to go lower,
147 00:26:59,940 --> 00:27:09,780 and it rallies up to an area like this smart money comes in and sell short to these buy orders that are resting read about these relative equal highs. So
148 00:27:09,780 --> 00:27:17,730 actually what is happening here, there's two things occurring, the algorithm that delivers price, no matter how many buyers or sellers that are coming in the
149 00:27:17,730 --> 00:27:28,770 marketplace, the price algorithm keeps offering higher and higher and higher. It's not necessarily buying or a lot of buying that's drawing price up on this
150 00:27:28,770 --> 00:27:40,710 candle. It's just marking to market the transactions that are being forced into because of the algorithm constantly pricing higher. Think about you've been in a
151 00:27:40,710 --> 00:27:51,030 short before, and it starts going out. They call it a short squeeze, right? There isn't a lot of volume. In those instances, okay, it's usually just
152 00:27:51,090 --> 00:27:58,590 constantly keeps offering higher and higher and higher. That's because the algorithms doing that. Look at look at a lot of the retracements that happen
153 00:27:58,590 --> 00:28:08,580 real short, in sudden, they don't happen with a lot of volume, not all the time. And that may or may not I'm not going to cosign when I hear that may or may not
154 00:28:09,210 --> 00:28:18,060 confirm what I'm suggesting here. There's other ways to confirm what I'm suggesting. It's simply just back testing it, you'll see it but this rally up
155 00:28:18,180 --> 00:28:27,900 once it takes this liquidity into the marketplace, it literally grabs those buy orders by the hair and yanks them into the marketplace. Those orders that are
156 00:28:27,900 --> 00:28:36,750 sitting here pending, those buy stops are now flooding the market in the form of buying at the market. And they're just out there screaming waiting for a
157 00:28:36,750 --> 00:28:50,250 Counterparty. someone that wants to take the other side of that buy they want to sell who wants to sell Smart Money does. So smart money, get that entity that is
158 00:28:50,250 --> 00:29:03,510 not Goldman Sachs. That's not Citi. That's another entity outside of that. They don't make their way into books. They're not on YouTube, they don't sell
159 00:29:03,510 --> 00:29:16,080 courses. They don't write books, giving out little trademark gimmicky little entry patterns. That is out here doing what I'm showing, I've been showing for
160 00:29:16,080 --> 00:29:27,180 years. They don't want to draw any attention to themselves. They themselves are not market makers. Okay. So you're not beating the market maker like this. The
161 00:29:27,180 --> 00:29:39,210 market maker is the algorithm. Okay, that's, that's who's making the market. The algorithms are doing that. The entity that considered smart money, they're
162 00:29:39,210 --> 00:29:47,700 waiting for these instances here to engage price. So there's two components to what I teach as smart money concepts. It's the understanding that there is an
163 00:29:47,700 --> 00:29:57,450 algorithm that's driving price regardless of what you want to believe it's controlled. It takes a willingness to subscribe that a lot of people choke on
164 00:29:57,450 --> 00:30:05,340 that one and they don't want to consider anything more because they can't even imagine that these markets are so big, they can't be controlled when they are.
165 00:30:05,910 --> 00:30:16,290 Okay? So once you subscribe to that view, and I suggest if you've never done it, just do it for a few months and steady price with that viewpoint, then
166 00:30:16,350 --> 00:30:28,320 understand liquidity. If you blend those two together with time of day, day of week, everything starts to come together and you'll get a an understanding about
167 00:30:28,320 --> 00:30:38,490 price that is unique. It will challenge a lot of the retail ideas. And I would put these arguments out there saying, Look at compare and contrast, this
168 00:30:38,490 --> 00:30:48,900 discipline against what I'm showing you here, it will be at odds with many types of disciplines, it won't feel comfortable doing what I'm teaching you. But after
169 00:30:48,900 --> 00:30:57,180 a while, you'll start seeing things repeat. And then when you're disarmed, and you're not looking at defending your way of doing things, because you're
170 00:30:57,180 --> 00:31:05,910 investigating what I'm suggesting, that's all I've asked anybody to do, just simply investigate with back testing and see if what I'm suggesting is occurring
171 00:31:05,910 --> 00:31:16,530 in price. Once you see it a few times, you can't unsee it, like it's it's there, it's it's there it is you see the guy behind the curtain, you can't, you can't
172 00:31:16,530 --> 00:31:30,660 hide it anymore. And everything else won't feel like it makes sense to look at it. And it's a strange feeling once it occurs. But it's liberating, because then
173 00:31:30,870 --> 00:31:39,930 you can start looking at the market like Smart Money does, they're looking for where the algorithms taking price, they're anticipating this whole run here,
174 00:31:40,140 --> 00:31:51,330 they may or may not be in this by but they will be going short here. Then once they do this, if they're going short, once this flood of buy orders become
175 00:31:51,330 --> 00:31:52,380 market orders the buy,
176 00:31:53,640 --> 00:32:06,510 that gives smart money, the entity that's going to go short, that gives them an enormous flood of Counterparty liquidity, they have willing buyers at a high
177 00:32:06,510 --> 00:32:19,530 price to sell to. So those buy orders, they may be putting people net long on a breakout, or they may be neutralizing in a loss on short holders, it doesn't
178 00:32:19,530 --> 00:32:33,120 matter to them. That by side liquidity is just counterparties to their interest on going short. So if they're trying to take the buy stops in here, and use that
179 00:32:33,120 --> 00:32:48,990 as a way of facilitating a short position, using their mentality, they have to have a Counterparty pool of liquidity to get out in where would that be here? In
180 00:32:48,990 --> 00:32:57,390 the form of sell stocks, right? Where would they reside right now, at this moment, they're getting short, smart money is getting short that entity that is
181 00:32:57,690 --> 00:33:09,810 the elite. Okay. That's not the market maker, the market maker is the algorithm, that's a completely separate, entirely different thing. That's the mechanism.
182 00:33:12,420 --> 00:33:24,030 The trader, or traders that are considered smart money, they're engaging price here, they still have to submit to what the algorithm does, and they have to
183 00:33:24,030 --> 00:33:37,770 wait. They have to submit to the process of waiting till the algorithm delivers price to an opposing liquidity pool. Where's that? Below this low here? And
184 00:33:38,370 --> 00:33:49,290 below that low here? Why this low? While this was the low in London? Plus, if you look at this over here, isn't this relatively equal? So people are going to
185 00:33:49,290 --> 00:33:59,760 see that as what retail support? So they're going to put sell stocks right below here. Why? Because someone's buying and selling all the time. So this rally
186 00:33:59,760 --> 00:34:09,960 here, it's natural to assume that the sell stocks would reside right below that low. You don't need to know whose orders are sitting there or how many there
187 00:34:09,960 --> 00:34:21,150 are. The algorithm doesn't know how many cell stops are resting below that. Newsflash, it doesn't know that your stops below there it doesn't know that the
188 00:34:21,150 --> 00:34:30,300 guy on the forums that you reading it doesn't know that the people on Instagram stop is right below there and they don't they don't know that. But they
189 00:34:30,300 --> 00:34:40,020 understand the logic that people follow that this is where a trailing stop loss would be one Long's and above here boss dots will be placed for shorts or
190 00:34:40,020 --> 00:34:51,180 breakout artists that want to be long on a breakout to the upside. So their sell stops below here in here in the buy stops right now have been purged. That means
191 00:34:51,270 --> 00:35:04,170 they're right now that they've been activated, so the markets flooding with buyers at the market. Smart Money selling short there, they are going to submit
192 00:35:04,170 --> 00:35:19,920 to the idea of waiting until the algorithm read prices below this low and maybe down below that low. Right there, Smart Money has on boarded. With shorts, with
193 00:35:19,920 --> 00:35:33,930 these buyer stops, they offset that short position with sell stops here and below here, then what happened, the market goes back to a point of equilibrium
194 00:35:34,020 --> 00:35:50,190 between the high and the low. Once it does this, it becomes a 5050. It could go either direction now. Smart Money will wait for an obvious clear run by the
195 00:35:50,190 --> 00:35:59,640 algorithm. It's not my point or the scope of this lesson here to talk about all the different facets and ideas on how the algorithm will do the next thing. But
196 00:35:59,640 --> 00:36:12,150 I want you to understand the logic of what I just showed here. Okay. Now with that said, let me go back and add the trade executions that I did this morning.
197 00:36:13,290 --> 00:36:26,730 This was my entry 4223 and three quarters, I sold three hypothetical paper traded, took one off here, because we closed in this imbalance, it might have
198 00:36:27,000 --> 00:36:37,380 retraced a little bit before it went another wave lower. Then it went below here at the partials there one and I took another one off here. The market did in
199 00:36:37,380 --> 00:36:44,160 fact go a little bit lower, I wasn't able to see that because I was afraid they were going to call me back with my car being done. And I wouldn't likely see
200 00:36:44,160 --> 00:36:53,490 this as it happened. So I just took the remaining portion off. And there it is. The market trades right back up runs the buy side liquidity here
201 00:36:55,470 --> 00:37:15,120 pulls back down in, it's consolidating. Right now, their sell stops below here in here. They run rate for it there. So we have by stops taken in by smart
202 00:37:15,120 --> 00:37:27,750 money, where they want to take their profits on their short, below old lows. Here, it runs there. Here it runs there as well. And then the market goes back
203 00:37:27,750 --> 00:37:39,840 into middle the range between the high and the low a day, no other trades were taken. So I was just trading the opening session in New York, using Smart Money
204 00:37:39,840 --> 00:37:50,550 concepts, my concepts, the things that I've given to the trading community revealed what it is that smart money does. And it's it's not a lot in terms of,
205 00:37:51,330 --> 00:38:00,960 quote unquote, money. It's the element of precision. That's what I'm trying to suggest is the main takeaway here and the logic of what it is you're doing. I'm
206 00:38:00,960 --> 00:38:10,200 not looking at a pattern, okay, I'm not looking at an indicator telling me anything. I'm looking at a narrative, because I understand what these algorithms
207 00:38:10,200 --> 00:38:19,920 are doing. And I know when they're likely to do it. Now, I may have an expectation that the algorithm should do this or that. And then when I engage, I
208 00:38:19,920 --> 00:38:28,350 may have it wrong, and then it stops me out. Does that mean the algorithm has changed? No. Does it mean the the logic that I use is flawed? No. Does it mean
209 00:38:28,350 --> 00:38:37,440 that it's going to fail going forward? No. It just means me as the human, the trader, I made that error. And I own that the responsibility is mine. I'm not
210 00:38:37,440 --> 00:38:49,770 blaming the system. I'm not blaming the market. I'm not blaming the market maker, I'm owning that. That's the disconnect, that smart money, rip off artists
211 00:38:49,800 --> 00:38:57,390 that have taken my content and started running around neck like gladiators. They're never going to take ownership of their mistakes, they're going to fault
212 00:38:57,390 --> 00:39:09,750 something else. Okay? When I blow it, and I make a mistake, and I lose on a trade, I own that. And I have no embarrassment of it. Because I know if I trade
213 00:39:09,750 --> 00:39:20,580 every single day I will have losing trades like anybody else. If I'm very selective about what I'm looking for my losses while they still may incur they
214 00:39:20,580 --> 00:39:30,570 will be significantly less because I'm looking for these perfect scenarios where everything might be in my favor. Now when I say perfect doesn't mean that it's
215 00:39:30,570 --> 00:39:40,740 perfectly profitable in no drawdown for new losing trades. That's not what I stated. I said these are perfect conditions for me to be comfortable engaging in
216 00:39:40,740 --> 00:39:49,200 price action at that moment. So I want to take you into this little area here and show you what I was using for the entry cuz I know some of you are like, can
217 00:39:49,200 --> 00:39:56,700 you just get to the point How do you know? How do you know that that was an area to enter it ICT. Alright, so we're in this little area here. I'm going to drop
218 00:39:56,700 --> 00:40:07,320 down into a one minute chart I'm going to scroll back here, drive you nuts. I know some of you probably look at this. And you probably have all kinds of
219 00:40:07,320 --> 00:40:16,620 interesting, easier ways to go back to that area here faster. I'm clumsy with trading view. Still, most of the things I know about trading view my own
220 00:40:16,620 --> 00:40:26,550 students taught me. So I have no shame in telling you that. But we have this spare Vega swing log, see that we traded down below, let me take this off,
221 00:40:26,550 --> 00:40:35,490 because we've already accomplished the method by getting this area. So we have the fairway gap I've been teaching you in this mentorship. And the low one, that
222 00:40:35,490 --> 00:40:44,790 candle comes in at 4222. So I was waiting and watching to see if the price on this candle, as we were drawing up into, I wanted to see if we would step up
223 00:40:44,790 --> 00:40:59,070 into 4222. As it happened. As that occurred, I went in sold at market, three contracts as a paper trade. Okay, I think I've earned the right to go back to
224 00:40:59,070 --> 00:41:05,460 paper trading, okay, I told you, I was going to do this, I showed you a live account, I'll show you the Live account at the end of the year, it's not a big
225 00:41:05,460 --> 00:41:14,970 deal. We'll go through every single month. But I want to teach. So to do that and feel comfortable. That way, I'm not worrying about trying to produce
226 00:41:14,970 --> 00:41:27,540 anything except for the the lessons, we're going back into this medium, okay. So as it rounded up into that I sold short. And I was aware of the imbalance here,
227 00:41:27,720 --> 00:41:35,430 as we trade down and close that in, that's where I took one partial off there. And I took another one off below the relative equal lows, remember what's below
228 00:41:35,430 --> 00:41:47,610 that sell stops, where I'm buying back in that pool of liquidity of sell stops. So this is inducing a flood of sell orders
229 00:41:47,670 --> 00:41:57,210 at the market. So a sell stop when the market trades there and marks the market, that sell stop becomes a market order. So it's flooding the market with sellers
230 00:41:57,660 --> 00:42:06,000 constantly hitting the market. And if you are trying to buy, it's going to be real easy for you to get filled. And because Smart Money isn't trading three
231 00:42:06,000 --> 00:42:16,800 contracts, they're trading hundreds, maybe 1000s of contracts. And they need these areas here. And here for liquidity, because they may not be able to get
232 00:42:16,890 --> 00:42:27,570 efficient fills on large positions as the markets running like this. So there's a there's a marriage, okay, are a dance between what the algorithm is doing, and
233 00:42:27,570 --> 00:42:38,730 what the elite traders are doing. They're waiting for these elements to come together time and price and for the purpose of liquidity. So I'm doing what
234 00:42:38,730 --> 00:42:52,740 smart money does by trying to sell short above an old area where buy stops would be. And I'm also selling it right at the point of the best timing, the best
235 00:42:52,740 --> 00:43:02,430 timing with price time as it goes up in this area here. I'm not fearful that it's going to run this high. But what happens if it doesn't hit your stop? Then
236 00:43:02,430 --> 00:43:12,450 I had a losing trade. How's that for logic? See, you're you're trying to avoid a losing trade. And the longer you try to do that, the longer it's going to take
237 00:43:12,450 --> 00:43:23,670 for you to get good at doing this. You're going to take losing trades. That's what trading is. It's managing losing positions. Winners are going to come if
238 00:43:23,670 --> 00:43:32,520 you stay in the game long enough. But every single trade opens up with a losing position. You have the commission costs you have the spread. If it's in forex,
239 00:43:32,910 --> 00:43:42,420 and you have the initial drawdown it may incur when you put the trade on the trades don't always go immediately in your favor. I mean, I had trade sometimes
240 00:43:42,420 --> 00:43:52,770 it you dilly dally around before they started moving in my direction. It just so happens this one didn't do it. I'm gonna show you. If we go into one of us, I'm
241 00:43:52,770 --> 00:43:58,290 gonna show you here. Let's go into the seconds. Okay, I'm gonna go into the 15 second
242 00:44:03,690 --> 00:44:21,570 and show you the candle I entered on for the purposes of timing okay, and you can see here even on the 15 second on, I'm on that candle there. Now watch, I
243 00:44:21,570 --> 00:44:24,990 want to go on to the five second candle
244 00:44:31,980 --> 00:44:46,830 for some of you this might not be all that meaningful. But for the folks that are really into precision, they like to see these things. Even on the five
245 00:44:46,830 --> 00:44:55,260 second candle, I'm in on that candle right there. Okay, so I'm waiting for something very specific and you can't get any better than that except for
246 00:44:55,260 --> 00:45:12,360 selling at the very high which I'm off by now I was an air 42, what was the entry 4223 and three quarters, and the high comes in at 4225 and a quarter. So
247 00:45:12,390 --> 00:45:25,230 I'm off by what's at one and a half and a half handles from the high of that swing in, and then caught all the rundown, lower. So that's smart money in the
248 00:45:25,230 --> 00:45:36,780 hands of someone that knows how to do it. And the logic behind that, and then doing nothing new the rest of the day, because it's already done, the
249 00:45:36,780 --> 00:45:49,170 manipulation. It's manipulated price above these relative equal highs, then distributed to a point of liquidity here. And here for the purpose, okay, here's
250 00:45:49,170 --> 00:46:01,290 what the algorithms doing. The algorithm is gyrating for the purpose of providing liquidity for this class of trader. You're not supposed to the
251 00:46:01,290 --> 00:46:14,040 Prophet. These markets are not designed for you and I, they're not. They're not designed for the Goldman Sachs fellows. They're not designed for Citibank. It's
252 00:46:14,040 --> 00:46:26,580 not designed for them down, they have models that allows them to be profitable. But these markets are really there for this elite class of trader that no one
253 00:46:26,610 --> 00:46:36,660 really knows about. And that's who I'm talking about. So when I say the market maker, that's the person that wrote and designed, the algorithms that's
254 00:46:36,660 --> 00:46:47,220 designing these price swings up and down. That's the, that's the market maker the algorithm before electronic markets, they were real people. And they would
255 00:46:47,220 --> 00:46:56,910 sit there and they would literally create the environments that would create the same things as occurred here. How did they do that? They would literally pair
256 00:46:56,910 --> 00:47:07,020 orders. What does that mean? They would sit there and say, Okay, I'm going to I'm going to sell at this price. Will you buy at that price yet? Because all it
257 00:47:07,020 --> 00:47:17,640 takes is one contract to mark to market. And they would offer Hey, I'm going to sell at this price you buy at that price. Okay. One, all it takes is one
258 00:47:17,640 --> 00:47:28,620 contract for that candle to print there. And they will continuously do that. And you don't want to believe that. But that's exactly what took place. In these
259 00:47:28,620 --> 00:47:40,590 things have always been rigged. These markets have always been absolutely 100% rigged. That's the game. It's their game. It's their rules. We have to play in
260 00:47:40,590 --> 00:47:49,470 their arena, by their rules, doesn't it make sense to understand what they're doing at specific times? Now, I
261 00:47:49,470 --> 00:47:57,990 don't know every single fluctuation in the marketplace, there's times of the day where once it did this, I'm done. Because I'm not going to be confident about
262 00:47:58,590 --> 00:48:08,310 what the rest of the day is going to do. If I understand that there's a limitation in my understanding, why am I going to push my suppose it edge. This
263 00:48:08,310 --> 00:48:20,130 is not smart money after this. This is this is all luck. If I get it, right. It's just luck. And people make money with luck. I've had several instances were
264 00:48:20,280 --> 00:48:28,530 early in my career, I had periods of blind luck, and I thought it was skill. It wasn't. It was just me being right about what it was I was doing. And I
265 00:48:28,530 --> 00:48:42,750 attributed that as skill. This folks is skill. This is understanding this is an understanding and a depth of knowledge that is not easily obtained. Like you
266 00:48:42,750 --> 00:48:53,430 have to be, you got to be shown this, you got to be taught what these markets are doing. And I'm the only one that stepped out here and done that. And I had
267 00:48:53,430 --> 00:49:03,120 to create a language to allow me to do that. So that's why I teach the way I do the words that I've used in my vocabulary that I use for teaching Smart Money
268 00:49:03,120 --> 00:49:10,860 concepts. It used to be when I used to teach on baby pips, I would just say, you know, these are smart money concepts of Allah. And I had to create a language
269 00:49:10,860 --> 00:49:20,670 because some of these things I'm not allowed to teach you. So I create things that are very close to what the algorithm does. To permit me to talk about it
270 00:49:20,670 --> 00:49:32,850 openly. In sometimes it may have a silly name on it, which is disarming, it hides in plain view. That's what I've done for 30 years. I've done those types
271 00:49:32,850 --> 00:49:46,860 of things. Teach what I understand and do my best to be a an asset to the trading community. I may not resonate with you as a mentor, I may not trade in a
272 00:49:46,860 --> 00:50:01,530 way that makes sense to you. You might require indicators. You might need those things to help you make a decision. That crutch that gimmick that tool that
273 00:50:04,530 --> 00:50:14,820 advantage, however you want to refer to it, if it helps you, I'm not in any position, nor is anyone else in a position to be able to say, it's not
274 00:50:14,820 --> 00:50:26,040 effective. Because if you find it effective, that's all it matters. I can't spend your money, and you can't spend mine. So no one's going to convince me to
275 00:50:26,040 --> 00:50:34,650 trade a different way. Because I believe this is the market. I believe this is exactly what the market does. This is exactly what I want to understand. And I
276 00:50:34,650 --> 00:50:43,380 want to replicate what smart money is doing. Because I understand enough about the algorithm. Certain times of the day, certain days of the week, certain weeks
277 00:50:43,380 --> 00:50:55,050 of the month, certain months of the year. I understand its language. But times when I can't, I don't do anything, I stay flat, I don't do anything at all. If I
278 00:50:55,050 --> 00:51:03,030 traded in those environments, where I don't understand what it's likely to do, guess what's going to happen to me, I'm going to suffer drawdown, if I don't
279 00:51:03,030 --> 00:51:17,280 control myself, what's going to happen, I'm going to blow the account. You see, everything has its own place. And everything has a use. And also, there's
280 00:51:17,280 --> 00:51:27,960 periods when you don't do anything. All of that must be incorporated in your trading plan. For me, the things that taught which I've dubbed as smart money
281 00:51:27,960 --> 00:51:44,340 concepts, is my logic. And I've shared this for going on three decades now. So if it's useful to you, and it helps you, my request to you, as the author of all
282 00:51:44,340 --> 00:51:54,090 this stuff is don't go around using it like a sharp stick, don't go around, you know, stabbing other traders in the neck, okay, or in the back saying, hey, you
283 00:51:54,090 --> 00:52:02,880 know, I got something that's better than your stuff. And you're not going to win friends like that, you're not going to build a community around you, that's
284 00:52:02,880 --> 00:52:12,780 going to respect you, they're going to look at you as an ogre. And when I was younger, I didn't mind being an ogre, because I didn't. I didn't understand how
285 00:52:12,870 --> 00:52:26,220 powerful this stuff was. And I was irresponsible with it. In my older age, I'm about turned 50 In August, I respect it more. And the fact that I've been gifted
286 00:52:26,220 --> 00:52:36,180 with this, I want to be the most responsible mentor, I can be with it. And I'm hoping that I can inspire those individuals that have gone a different direction
287 00:52:36,180 --> 00:52:45,600 with all this stuff I teach that they will hopefully in concert, try to bring in their, their ego and try not to be so abrasive with other people in the
288 00:52:45,600 --> 00:52:48,420 community. If you know you're better than the next person.
289 00:52:49,740 --> 00:52:58,350 That's all it matters. You don't need to communicate to everyone else. If there's a trading competition out there that you know, you can win. Just go win
290 00:52:58,350 --> 00:53:13,710 it. The point is this. Nobody really cares about the talker. Nobody cares about the hotshot that says they can do everything but shows nothing. If there's other
291 00:53:13,710 --> 00:53:20,130 people out there that are doing something, and they're they have their own little community, and they're profitable, and they show that they're actually
292 00:53:20,130 --> 00:53:29,880 trading. You got to ask yourself, are you at least doing that? Because most of the smart money concept guys out there running around on Instagram and Twitter
293 00:53:29,880 --> 00:53:39,300 and Facebook, they're not proving profitability. And that's not to say that my concepts aren't profitable, because they are in the proper hands they are. But
294 00:53:39,300 --> 00:53:48,840 there's a lot of people that use my buzzwords and concepts. And they teach it from a concept of hindsight only. And the rookie, a lot of people in and they
295 00:53:48,840 --> 00:54:01,290 scam them. A lot of people pretend to know these things, but they can't really do it. My advice, if anybody says they use Smart Money concepts, and they sell a
296 00:54:01,290 --> 00:54:11,910 course or if they sell education, ask them to prove that they can execute with it at least a month consistently. Because my students that know how to do this,
297 00:54:11,940 --> 00:54:21,480 they can do that easily, easily. And I'm not saying hey, go out, start teaching my stuff. I'm saying that anyone that is trying to wrap themselves as a smart
298 00:54:21,510 --> 00:54:32,340 money concept, guru or mentor. If they know how to do this, they will absolutely be glad to sit down and show you all publicly that they can do it and they can
299 00:54:32,340 --> 00:54:33,510 do it with a live account.