ICT YT - 2023-05-18 - ICT Mentorship 2023 - ES Market Review May 17 2023

Last modified by Drunk Monkey on 2023-05-20 08:52

Outline

00:10 - Introduction to this week’s episode.

- Weekly chart review, e mini s and p.
- Weekly price action.

03:36 - Liquidity levels in the market.

- The three levels of liquidity on the daily chart.
- The three quarters theory.

06:07 - What’s happening in the market right now.

- What to look for in the market today.
- How the market has respected the gradient levels.

08:42 - How do you back test? 

- Going back in old data and backtesting.
- How to backtest and journal.

10:59 - How to cheerlead in your charts -.

- Always cheerlead in annotations by not being fearful of the moves.
- Time-based algorithmic setup.
- Shift in market structure, fair value gap.
- Short term low vs long term high.

14:59 - What’s going on with the trading range.

- The one micro-imbalance on the three minute chart.
- Real-time trading on tradingview.

17:04 - The opening range gap -.

- The opening range gap.
- How to use a gap to trade higher.

19:55 - What is the new day opening gap?

- Look at the premium/fair value gap.
- The daily range of power three.

22:17 - How the algorithm seeks new liquidity -.

- The three minute chart and the one minute chart.
- The back-testing procedure.

24:17 - What you’re doing is like writing the most useful trading manual you will ever read.

- The secret part of the recipe.
- Why it takes a lot of time and effort.
- What a cadaver is and how to use it.
- The importance of having one market.

Transcription

1 00:00:10,260 --> 00:00:19,080 ICT: Alright folks, welcome back. This is gonna be a short little review and kind of like a an incorporation of several things I've taught in the mentorship
2 00:00:19,800 --> 00:00:33,420 in 2022 and 2023 thusfar. So we're looking at a weekly chart of E Mini s&p is the delivery contract of June 2023. And I took in your attention to this area up
3 00:00:33,420 --> 00:00:46,050 here. It's also been mentioned in the Nasdaq futures contract, NASDAQ has delivered its respective volume imbalance which is up in here. So this is the
4 00:00:46,050 --> 00:00:57,060 area that I believe that ES or E Mini s&p is likely to drop into. So we have technicals that suggest that we might want to get up there. And I've been
5 00:00:57,060 --> 00:01:08,190 talking about that this week. In Twitter, mentioning that I favorite the run on buy side. And I'm gonna tell you why here. We have a discount fair value gap
6 00:01:08,190 --> 00:01:18,870 between this candle time this candles low, this little area in here was delivered twice. And we're consolidating with a weekly imbalance, seen here with
7 00:01:18,870 --> 00:01:30,060 the volume imbalance. And then Vice side here if it gets extrapolated, we have Powell speaking on Friday at 10am. So be mindful that I believe it's the reason
8 00:01:30,060 --> 00:01:39,960 why we're seeing the market, you're kind of like waiting on bated breath to see what the Fed chair would have to say. So we're going to use that as a
9 00:01:39,960 --> 00:01:50,190 smokescreen to move price. Also, we have this down close candle again, on a weekly chart, you have a new price we're using that why am I using opening price
10 00:01:50,190 --> 00:02:00,180 and the higher the candle, because we have a short stubby little candle wick. So whenever it's like that in respect to the entirety of its range, I'm going to
11 00:02:00,180 --> 00:02:10,140 elect to use the opening price. So we're going to be looking for this weekly candle to expand up, maybe reach up into this high here and then into the weekly
12 00:02:10,140 --> 00:02:16,740 volume imbalance. So tomorrow's Thursday. So we'll be looking for Thursday and Friday's action to try to deliver that very thing and repeat pretty much what we
13 00:02:16,740 --> 00:02:30,300 seen in the NASDAQ be mindful of this blue shaded area with the order block, these levels are going to transpose into daily chart don't confused. So here's
14 00:02:30,300 --> 00:02:39,570 that weekly order block level here. And that shaded area, which is the weekly discount fair value gap. I mentioned those two candles trading as wicks on the
15 00:02:39,570 --> 00:02:53,010 weekly chart that's been shown here with the daily candles. I mentioned on Twitter. Earlier in the week, I made a short little vignette video talking about
16 00:02:53,010 --> 00:03:03,900 how they imbalance here, which is a fair a gap between this candles high this candles low. And that little section of price action is a very gabbing a form of
17 00:03:03,900 --> 00:03:13,500 advice and analysis on efficiency. You see how the market is pretty much been holding inside of that and reaching up into that premium fair value gap. I
18 00:03:13,500 --> 00:03:20,730 annotate insured. And we have relatively equal highs back here which is also residing inside of that weekly volume amount. So that white shaded area
19 00:03:20,730 --> 00:03:31,410 specifically 4244 Even I like that as a draw on may not get there this week. But I do believe we're probably going to reach up into this high here. sometime this
20 00:03:31,410 --> 00:03:39,120 week, before we close whether we stay there and move higher or not that remains to be seen. But right now I'm just treating that as a drop in liquidity. So
21 00:03:39,300 --> 00:03:50,520 these two levels here, the I guess, purplish blue color, and the pink those levels are going to be seen going into the lower timeframes. We won't see so
22 00:03:50,520 --> 00:04:06,210 much to this anymore after this slide, so we have the both side liquidity pool up here, that daily premium for Vega and the daily discount Vega and the weekly
23 00:04:06,630 --> 00:04:15,090 discount. Very good. So it kind of gives you the ebb and flow of what the market has been doing and why I've been focusing on looking for by side to be taken.
24 00:04:15,510 --> 00:04:25,080 the buy side I outlined on all these highs here mentioned this in a tweet saying that they're they're not really seeing any runs on liquidity, which means that
25 00:04:25,080 --> 00:04:36,030 they're stacking that up. So every time we were going lower lower lower the markets gone to utilize this liquidity as a means of asset distribution. So what
26 00:04:36,030 --> 00:04:50,130 is it offsetting the long's that were accumulated at that low? That low, that low that low? That low and that low? And you may be looking at these winds in
27 00:04:50,130 --> 00:05:00,660 here, these dashed and then the dotted line here. What I've done is created the gradient levels of that fair value gap on the daily chart myth point is that
28 00:05:00,660 --> 00:05:10,710 dotted red line. And that's consequent encouragement, midpoint, and the lower 25% and the upper 25%. And then the high and the low respectively, of that
29 00:05:10,710 --> 00:05:18,600 daily, fair value gap. And I'm just going to go up one slide again, just to take you back to what I'm looking at. It's this area right in here. So if you do this
30 00:05:18,600 --> 00:05:30,270 on your own chart, you'll see what I mean by transposing and watching and the levels are respecting that. This is not quarters theory, okay. Invariably,
31 00:05:30,270 --> 00:05:44,340 because I draw rectangles teach the idea. People have, unfortunately, quoted me or misrepresented me, in a manner where it was be viewed as a reinvention of
32 00:05:44,340 --> 00:05:53,550 supply and demand. Supply and demand is not what I trade. The rectangles are just the highlight an area for you to study on your own charts. These gradient
33 00:05:53,550 --> 00:06:02,970 levels is not quarters theory. Okay, so those three quarters theory and come back, and you'll see that this is not what this is. But the algorithm will seek
34 00:06:02,970 --> 00:06:14,160 these levels, inefficiencies, which is a fair value gap. And it'll use these levels very precisely. And you can see how the market trades here, here, hear,
35 00:06:14,490 --> 00:06:26,880 hear, hear. Look at the bodies here. Okay. And then the market rallies today, up into that premium fair value gap on the daily chart. And consolidating might
36 00:06:26,880 --> 00:06:33,030 want to come back down just a little bit in here. And then I want to see it reprice up into the 4200s. That's what I'm looking for. That's what I want to
37 00:06:33,030 --> 00:06:42,960 see. Yes, it's a lot of movement. But, you know, we have Fed Chair Powell speaking on Friday, and he can bring a lot of dynamite behind. market moves.
38 00:06:43,110 --> 00:06:55,710 Okay. So they they like to use his words to perpetuate your movement. taking that away, breaking it down to just where it has been, what's it reacting off
39 00:06:55,710 --> 00:07:05,910 of? And what's it likely go to next? That's what I'm seeing right now. So in my mind for tomorrow, and on Friday ahead of Powell chairman. Discussion, that
40 00:07:05,910 --> 00:07:14,790 little fairway get right there. Okay, this canvas low this candles high. That's a fair Vega in the form of a sippy Solsona balanced by sound efficiency. So the
41 00:07:14,790 --> 00:07:24,120 market is only offered downside delivery. So efficiently rebook imbalance, that area, its market needs to reprice that. So it should see it as a pass on the
42 00:07:24,120 --> 00:07:34,710 upside. So, efficient price delivery is a pass above and below, or below and above. Okay, so up, down, up, down. That's how you read price and efficiency.
43 00:07:37,080 --> 00:07:43,800 Let's go back into this little area here. And you'll see we have a boss out of balance, also efficiency, which is up here, but you got you can see, we're also
44 00:07:43,800 --> 00:07:54,510 respecting that, and also this gap here. So just be mindful that I'm not going to keep these specifically on my chart going forward in this lecture, but just
45 00:07:54,510 --> 00:08:05,550 have it on yours. Okay, so back into the slide here, we're gonna go into greater detail in all of this now, dropping down into a 15 minute timeframe, you can see
46 00:08:05,550 --> 00:08:14,310 how the market has respected those gradient levels on the fair value gap. And the way you get this is if you drop a fib, and find it on the high and the low
47 00:08:14,310 --> 00:08:28,350 of any fair value gap, or a gap of any kind, highlight the 50%, the 25% and the 75%. And you set that on your fib settings. And then whenever you draw a range
48 00:08:28,410 --> 00:08:36,150 from high to low or low to high, these levels would come out respectively. And I'll teach more about this as we go into the summer months. But right now, this
49 00:08:36,150 --> 00:08:45,210 isn't enough to accomplish the method. So we have the market dropping down here at the opening bell. And we're gonna go into great detail here. And really
50 00:08:45,210 --> 00:08:56,280 refine that to a level of precision that is also by me doing this presentation here. This is how I tell all my students to go back in old data. And backtest.
51 00:08:56,340 --> 00:08:58,980 This is my back testing is not using a
52 00:09:00,510 --> 00:09:11,040 Forex tester, it's not using Market Replay. Okay, that's practicing forward testing before going into live data. It's essential it has its place. But you
53 00:09:11,040 --> 00:09:19,410 need to go back and see and study what price looks like it will price moves and go into the great detail of annotating your charts what I'm showing you here. So
54 00:09:19,410 --> 00:09:27,720 this is an answer to everyone asking, Can you show us how to back test go into the charts and annotate and journal. This is what I'm showing you here. Each one
55 00:09:27,720 --> 00:09:35,700 of these are individual slides that I've created and placed into a PowerPoint. So that way, it kind of gives you an idea. I know there's a lot of different
56 00:09:35,700 --> 00:09:44,670 ways folks have been journaling and I'm not gonna say one's better than the other because there's so many different variables and options available. So you
57 00:09:44,670 --> 00:09:53,670 just do the way you want to do it. That is comfortable for you. Okay, so there's lots of applications and apps that you can use. You just do what it is that
58 00:09:53,760 --> 00:10:08,310 makes you feel comfortable and go into it is deep and highly D ETL as you want, make it like a therapy make it like a hobby that allows you to go into old data,
59 00:10:08,340 --> 00:10:18,060 study the details, how it delivered what time it delivered. And by doing that, and having sample sets of months, and years worth of back testing and studying
60 00:10:18,060 --> 00:10:28,020 price action like this, your subconscious retains it. Okay? And because you see it so many times, it's like a pseudo experience. And you want to annotate on the
61 00:10:28,020 --> 00:10:37,050 charts in these little areas where there's empty space, you want to kind of like cheerlead yourself and mention in annotations that you saw these things coming
62 00:10:37,050 --> 00:10:45,300 before it happened. And by retaining that, and seeing it in price action, and your own annotations, and journaling, reviewing that on the weekend, your
63 00:10:45,300 --> 00:10:52,950 subconscious retains that information as real experience. And it's a positive reinforcement because you're never adding anything to your charts. That is
64 00:10:52,950 --> 00:11:00,570 negative in nature. You don't want to say any complaints about why you didn't expect this, why you didn't do this correctly. Always cheerlead in your
65 00:11:00,570 --> 00:11:10,530 annotations. By doing that, it trains your mind to not be fearful the moves and also recognize things you've seen in the past because of this procedure in
66 00:11:10,530 --> 00:11:19,800 process. Alright, dropping down into a five minute chart here, you can see how the market does affect with bodies respecting that consequent purchase, which is
67 00:11:19,800 --> 00:11:28,380 the midpoint of the high and the low of the daily discount. Fair Value go. Now I know right away, this is going to go right over the heads of the newer students
68 00:11:28,380 --> 00:11:36,720 that just came here. I promised when you start doing this and doing it with your own charts, you'll start to see things that repeat over and over again, this is
69 00:11:36,720 --> 00:11:46,590 just conceptually showing you how the market respected these levels, and to what degree in terms of precision. Dropping down into a three minute chart, which is
70 00:11:46,590 --> 00:11:54,510 how I teach my students we dropped down from a 50 minute chart to a five minute chart and then from five minutes down to one, we refined the timeframes until we
71 00:11:54,510 --> 00:12:07,590 see our imbalances or the model that we're using. I've been recently teaching my ICT Silver Bullet setup, there's a Twitter space that I did, I introduced it on
72 00:12:07,590 --> 00:12:16,710 a media a month a half ago or some close to two months ago. Where I outlined in discussion like an audio format, there isn't a there wasn't a video presentation
73 00:12:16,710 --> 00:12:27,000 or teaching on my ICT Silver Bullet set up until the the posted prior to this one here. So whatever video prior to this one, that's the one you can go to and
74 00:12:27,000 --> 00:12:38,160 look at and get more detail about this specific time based algorithmic setup. The morning session silver bullet here is LM I'm going to cover here, but in
75 00:12:38,160 --> 00:12:46,620 passing, you can see it up here. This is the pm session. So we have a shift in market structure here, it trades back up into that fear of a gap and drops down
76 00:12:46,620 --> 00:12:55,350 to attack, sell side liquidity there. So for your notes in your study, you can use that as your Pm session silver bullet. But for here, I mentioned yesterday
77 00:12:55,350 --> 00:13:08,310 and the day before that I was interested in seeing higher prices on es kind of catch up with the NASDAQ. And I specifically sent out a tweet with a chart that
78 00:13:08,340 --> 00:13:19,020 noted each Vysa liquidity pool that I felt that the market would reasonably run up into and engage that by saying this is a little bit more refined with the
79 00:13:19,020 --> 00:13:26,790 details here. And using the information I've already taught and talked about, you know throughout the week. We have a Basa liquidity pool here the market
80 00:13:26,790 --> 00:13:36,780 drops down at 930. This is a Judas swing, it trades down and clears out this short term low here. And this move here we're going to look at it in great
81 00:13:36,780 --> 00:13:47,370 detail also. But we have a shift in market structure right above this short term swing high right there. Then February gap there. And it occurs between 10
82 00:13:47,370 --> 00:13:57,420 o'clock and 11 o'clock. We're bullish we seen the market drop down and we trade into a fair value gap. This is a silver bullet long does buying a here using
83 00:13:57,420 --> 00:14:10,740 this candles low buying it here and running to that high does it offer 10 handles Yes, because 4140 to 4130 essentially is 10 handles and that has yet to
84 00:14:10,740 --> 00:14:23,640 meet this high here which would be above 4144 or so the criteria looking at that as a silver bullet right into that buy side it offers a range of potential 10
85 00:14:23,640 --> 00:14:32,820 handles so you can be a buyer there and let's see if it gets up here but you want to take profits at five and that's how I teach my son Cameron to work with
86 00:14:32,820 --> 00:14:42,030 that model. And it does in fact offer it in in the Watch what happens when he might say it's by sight it comes right back down in in take up the sell side. So
87 00:14:42,030 --> 00:14:52,920 it's offering what a run on stops. Why would it want to do that? So smart money can accumulate new Long's while trailed stop losses get taken out. But what's it
88 00:14:52,920 --> 00:15:06,780 trading back down into that daily discount fair value gap but more specifically in the upper quadrant? The 75 sense of that range. Look closer. This imbalance
89 00:15:06,780 --> 00:15:17,130 here, when it trades up here, traders that think that this is a liquidity void or something to that effect. They think that it's it's done here, it's, it's
90 00:15:17,130 --> 00:15:26,010 balanced. Now it's not, there's not a balanced price range that's just rebooked and repriced, to an inefficiency, that's all it has done has not become balanced
91 00:15:26,010 --> 00:15:36,240 yet. When the market trades down to the lower that again, here, in leaves the range of what it does on this candle here, this has now become unbalanced price
92 00:15:36,240 --> 00:15:45,060 range, because price has been delivered to the downside to the upside, failed to go lower, respected, and then left the range. So it's acted as a trading range
93 00:15:45,450 --> 00:15:57,300 inside of this one micro imbalance on the three minute chart. This candles high here is the very candle low right there. Precisely, it's not one tick short, not
94 00:15:57,300 --> 00:16:05,520 one tick off. It's exactly that price. And I counseled you to look at your own price data. And you'll see that it's in fact the truth. So when you see that you
95 00:16:05,520 --> 00:16:14,370 can trust that if we start to move higher, then we probably made the low of the day. And that would be down here. And I'll give you more details as we go on.
96 00:16:14,370 --> 00:16:22,260 Let's take a closer look at that now. So we're down into a one minute chart here, everything being equal. And that balanced price range, you can see the
97 00:16:22,260 --> 00:16:31,650 range between 10am and 11 o'clock, New York local time, always, I want you to take a look at that little area right here on TradingView. At the time of
98 00:16:31,650 --> 00:16:37,710 watching Real Time price data, generally, you're going to have electronic trading hours highlighted, it would look like this and you're trading.
99 00:16:39,090 --> 00:16:51,000 If you have live data, and you paid for that live feed from trading view, you can toggle from electronic trading hours to regular trading hours and see more
100 00:16:51,000 --> 00:17:01,500 detail. So if you click on that, it's going to change it to an option of regular trading hours or electronic trading hours. If you toggle it to regular trading
101 00:17:01,500 --> 00:17:14,670 hours, your chart would show this. Okay. And this is what I teach is the opening range gap. Okay, now I taught this to charter members, I taught this to old AC T
102 00:17:14,670 --> 00:17:24,390 mentorship students. And this is not something that is just introduced because other people have talked about it recently. I've been doing this since 1996.
103 00:17:25,410 --> 00:17:36,180 These are things that you had been there in the marketplace all this time. And while I don't claim to real estate here, you know, as a creator of this, it says
104 00:17:36,180 --> 00:17:47,940 this is one gap I like to see used. Now if you take this gap, and I'll explain what I mean by that the closing price, the previous session, and where we open
105 00:17:47,940 --> 00:17:57,810 at 930. That is the opening range. If there's a gap and we get higher, and we're bullish, this is how you use the information, you expect price to trade down to
106 00:17:57,810 --> 00:18:09,960 it reprice to the gap, and then go higher, move away from the direction of the gap after it fills. If we are bearish and we see a gap like this, then it could
107 00:18:09,960 --> 00:18:23,370 become a trade lower, fill the gap, consolidate false run and then break lower. Or if we're in consolidation. And we have already met some higher timeframe
108 00:18:23,370 --> 00:18:31,320 weekly objective, and we have a gap higher like that, then what can happen is is we wants to get fills, nothing happens. It just uses this entire gap throughout
109 00:18:31,320 --> 00:18:42,240 the day. But because we've been bullish as a highlight of yesterday, it's a gap higher opening fills and read prices down into that opening range gap well,
110 00:18:42,270 --> 00:18:49,530 which is where the session closes on regular trading hours of previous day, you can always find that price by simply just toggling the electronic trading hours
111 00:18:49,920 --> 00:18:59,070 to regular trading hours, which is why the rth is now here. You'll see that separation here. So what's hiding is all the electronic trading from where it
112 00:18:59,070 --> 00:19:08,940 traded yesterday at settlement to where we opened at 930 opening bell in New York local time in New York. So that difference there is going to be sometimes
113 00:19:08,940 --> 00:19:17,430 shown as a gap, it could be a gap higher like we see here or gap lower or could be unchanged. We would like to see a gap of some kind because a gap always
114 00:19:17,430 --> 00:19:28,770 creates an inefficiency and inefficiencies are many times not always many times, repriced, to, in how we use that information is paramount going forward. What I
115 00:19:28,770 --> 00:19:38,010 teach is something that's unique to me. This gap once it's completely repriced, then if we're bullish, we can take that gap and do multiplications of that and
116 00:19:38,010 --> 00:19:48,870 projected higher. So if you take that range from the low to the high and you multiply it up, you can get two standard deviations which essentially gets us
117 00:19:48,870 --> 00:19:59,490 real close to the high without even meeting that premium fair value gap that's in the pink area. Okay. Look at the respective of that. Premium fair a gap of
118 00:19:59,490 --> 00:20:07,590 highlighted on I mentioned this again on Twitter beforehand, in tweets, so just go back and look at the stuff I put up. I didn't put very many tweets up this
119 00:20:07,590 --> 00:20:17,130 week, go back and look at them and a little short vignette that I talk about, you know, for imbalances and where everything is new trading and such. And then
120 00:20:17,130 --> 00:20:31,050 look at it on your charts. So in terms of my power three, the daily range was shown at the opening at 930. It trades down, which is a Judas swing traders that
121 00:20:31,050 --> 00:20:38,340 are retail traders, they'll chase that move going lower, because they're not aware of that inefficiency between regular trading hours and how the electronic
122 00:20:38,340 --> 00:20:48,780 trading hours are hidden. When you look at a chart like this, there was trading, but now we're met with an opening range at 930. So that opening bell, what is
123 00:20:49,260 --> 00:20:58,200 all the volatility initially comes in the marketplace is usually this type of function, where it seeks to reprice to the previous sessions close. So we see
124 00:20:58,200 --> 00:21:06,270 that here it drops down, creates the low of the day and then starts to trade higher. As soon as we meaningfully move above the opening price here on this
125 00:21:06,270 --> 00:21:16,410 type of day, which would be really essentially swing above this, then the market does what it really starts to run higher for a premium, what premium the premium
126 00:21:16,410 --> 00:21:24,390 fare, I got that shaded in pink box at the beginning of the video, I take your potential from higher timeframe down so that way you can keep track of what I'm
127 00:21:24,390 --> 00:21:36,540 looking at, and how it salient. So essentially, what we're looking at here is my power three concepts, which is the open, manipulation, accumulation of Long's
128 00:21:36,960 --> 00:21:46,980 distribution into a premium and in settlement day close. So power three has been shown here, the daily range, the classic ICT by day, the Judas swing to reprice,
129 00:21:47,040 --> 00:21:55,830 the opening range gap low, which is down here also, a daily fair value gap consequent encouragement, confluence, that means that the midpoint of that daily
130 00:21:56,910 --> 00:22:06,360 discount fair value gap, which is here, it trades down into that additional credit, if you want to go into your new day opening gap. Man, I did a video
131 00:22:06,360 --> 00:22:15,660 presentation about that on this YouTube channel, just a few videos back, go watch that. And you'll see how you can use the new day opening that also is a
132 00:22:15,660 --> 00:22:24,600 component of this low as well. So many factors of why it went down here, a trader that uses retail logic would not be able to see all these confluences
133 00:22:24,600 --> 00:22:36,360 that I'm showing you here. And then a drawl to buy side liquidity that was shown in Twitter on May 16, which was yesterday between 23. And then the high of the
134 00:22:36,360 --> 00:22:47,160 day was booked at the Daily premium fair value gap high. And when you have all those details ever here, there's your high, there's your low, all these details
135 00:22:47,160 --> 00:22:59,460 coming in together making a beautiful tapestry of how the algorithm itself, prices, read prices, read delivers balances, and then seeks new liquidity. That
136 00:22:59,460 --> 00:23:08,310 is essentially what you're doing. When you're trading with my concepts. You're you're seeking what the algorithms likely to do move higher or lower, why should
137 00:23:08,310 --> 00:23:17,040 it go higher for an inefficiency or to take out buy stops? If it's trying to move lower? Why is it going down lower, it's going down to trade to an
138 00:23:17,040 --> 00:23:25,740 inefficiency or take out sell stops. If it's not going to do either one of those, it's going to consolidate and range bound and frustrate traders which is
139 00:23:25,740 --> 00:23:38,700 what we've been basically seeing for a number of days now. And weeks really if you want to be in the back of that. So there's a lot of detail and a back
140 00:23:38,700 --> 00:23:47,220 testing procedure. Okay, and you go through and use all these little areas over here and you fill in your observations and you want to kind of like cheerlead
141 00:23:47,220 --> 00:23:54,120 yourself and talk about how look how the market respected this silver bullet, which is a pair of a gap. On the three minute chart, we're watching a one minute
142 00:23:54,120 --> 00:24:02,640 chart now. So all those things that was entered on the three minute chart was transposed to this one minute chart, you want to include everything that you see
143 00:24:02,670 --> 00:24:12,030 and observe everything. And that way, you'll have more detail in your journal. Instead of just showing some charts and maybe a scribble here and a scribble
144 00:24:12,030 --> 00:24:21,510 there of useless information. You really want to make this kind of like a meditation. And yes, it takes a lot of time. Yes, there's a lot of work and an
145 00:24:21,510 --> 00:24:32,220 effort to be organized to have your charts mean something to you. What you're doing is you're you're writing the most important, useful trading manual that
146 00:24:32,220 --> 00:24:41,040 you'll ever read. And you're doing it with your own eyes, your own experience, your own annotations, your own charting your own snapshots of each individual
147 00:24:41,040 --> 00:24:51,420 chart and each individual respective timeframe. There's no better trading book or journal or instructional manual on price action, what you're going to be
148 00:24:51,420 --> 00:24:59,520 creating by doing this and that's why it takes time. Months, okay, and the more work and effort you put into it, the better you're going to be at reading price
149 00:24:59,520 --> 00:25:08,970 actions. This is the secret part of the recipe here. Every one of my profitable students did these types of things. They went back and looked at all moves. They
150 00:25:08,970 --> 00:25:17,250 studied them. They looked at them and he looked at all the details what time certain things occurred. What time did repriced to the higher low today and
151 00:25:18,270 --> 00:25:26,880 study that from a higher timeframe? Sticking with a bias looking at why should the price move, run to a higher low? Why should it move higher? Why should it
152 00:25:26,880 --> 00:25:35,970 move lower, and sticking with that narrative, and then going through your charts with that mindset, and looking at all the opportunities that presented itself.
153 00:25:36,450 --> 00:25:48,630 Over time, you will have a rich tapestry of reading price action in all hindsight moves, that is going to be applicable to future price action that
154 00:25:48,660 --> 00:26:03,660 you'll watch live. Every technical study endeavor, doctors, technicians, every one of them individuals that go to work now with their practice or their
155 00:26:03,660 --> 00:26:13,710 profession. They all practice and case studies that were hindsight, they were they were already done. And I mentioned this analogy a lot all the time to even
156 00:26:13,710 --> 00:26:23,640 surgeons worked on an cut on cadavers. So a cadaver is as a body that's been dead, it's been offered to the Department of science, so that way, people that
157 00:26:23,640 --> 00:26:34,710 are training in medicine, can do operations, surgeries, and study the anatomy of a dead corpse is the dead person
158 00:26:36,300 --> 00:26:47,760 that will never be able to be reanimated. So there is no chance of harm. The worst that already has happened, that person has expired, they're dead. So when
159 00:26:47,760 --> 00:27:02,550 you're trading with hindsight, when you're trading with a experience in annotations, you can't lose. It's all upside. But the only real I guess downside
160 00:27:02,550 --> 00:27:13,380 would be is to not take advantage of doing it. And or record negative affirmations in your annotations. Like, I was stupid, I missed this, or I did
161 00:27:13,410 --> 00:27:22,560 this or that. And this doesn't work. Every time when I try this doesn't pan out the way I want it to. Don't you don't want to do that in your annotations, what
162 00:27:22,560 --> 00:27:28,800 you're doing is you're cheerleading yourself. And that way, when you read your journal entries, there'll be in your own words, you'll be pulling out
163 00:27:28,800 --> 00:27:38,610 information that you have found in old price moves. And then you map out each individual day just like I did. And by doing that every single day, this is
164 00:27:38,610 --> 00:27:48,660 reason why I teach you to have one market or two if it's closely correlated, but nothing more than that. Because you want to have as much time and energy placed
165 00:27:48,660 --> 00:28:02,010 on studying one instrument, one market one pair, if it's Forex, one market if it's a futures contract, and dig into that, and do really rich, detailed study.
166 00:28:02,460 --> 00:28:14,550 Because the same things I'm showing you here exists in forex. It works in forex, it works in commodities, it works in futures. So it isn't like this only works
167 00:28:14,550 --> 00:28:23,520 here and there. All these principles are applicable to every asset. So with that, until I talk to you next time. Be safe.