ICT YT - 2023-07-09 - ICT Mentorship 2023 - Market Review - July 09 2023
Last modified by Drunk Monkey on 2023-07-11 12:00
Outline
00:23 - Market Review: Dollar Index.
- Market review for july 9-2023.
- Daily chart on the dollar index.
03:12 - Weekly Power 3 Power 3.
- The holiday for july 4.
- Trading mondays and when not to trade monday.
- Rip higher to get buy side, then drill back down.
- Weekly power three.
07:21 - Bullish order block on dollar index.
- Dollar index inversion fair value gap.
- Weekly volume imbalance in dollar index.
10:24 - Understanding the order block theory.
- The daily bullish order block.
- Order block theory and the hourly chart.
- Any one of those pd arrays could be utilized for you.
- New york open trade.
15:17 - Weekly volume and volume imbalance.
- Gap in the market and weekly volume imbalance.
- Weekly volume imbalance and inefficiency.
17:40 - How to trade the fair value gap in price.
- Weekly volume and balance, and how to do it.
- Fair value gap
- The daily chart is a more refined area.
- The one-hour chart with regular trading hours
22:06 - Distinction between candle body and opening price.
Inefficiency exists between the two candle bodies.
- Dynamic support resistance in electronic trading.
24:54 - Looking for gaps in liquidity.
- Three homework assignments for trading in electronic trading hours.
- The one-hour chart.
- How to classify specific liquidity pools.
- How to trade London session highs and lows.
29:53 - Why am I using the low in this pattern?
- Civic pattern, a classic ict market maker sell model.
- Breaking a breaker in the range.
32:19 - S&p vs. Nasdaq.
- S and p vs nasdaq and short term low.
- Short-term low on nasdaq.
- Market maker sell model and consolidation.
- Silver bullet run for relative equal highs.
Transcription
| 1 | 00:00:23,010 --> 00:00:35,820 | ICT: Alright, folks, welcome back. This is a market review for July 9 2023. We're looking at the dollar index is our weekly chart here. And I want to take |
| 2 | 00:00:35,820 --> 00:00:47,820 | you into this candle here, mean threshold, that up close candle, spiritual block, you can see we worked up into that level here several weeks ago, you've |
| 3 | 00:00:47,820 --> 00:00:59,760 | known about this fair pay gap here. And we have a liquidity pool right here for sellside. liquidity. So we're in a bit of a trading range. So far, we've had |
| 4 | 00:01:00,570 --> 00:01:12,150 | multiple instances of trying to get above this imbalance. At both times, we've had an unwillingness to do that very short term sell side liquidity pool here, |
| 5 | 00:01:12,750 --> 00:01:25,590 | but a lot more resting below here. So it'll be interesting to see how we open trade this week coming up. I'm favoring at least a run below this low and how we |
| 6 | 00:01:25,590 --> 00:01:32,070 | trade there does it accelerate? If it does, then obviously, we'll be looking for it to reach below here for the sell side. If we trade below it here and then |
| 7 | 00:01:32,070 --> 00:01:41,250 | reject, and then we may stay inside of this range, written here a little bit longer. Alright, so here's the daily chart on Dollar Index, you can see again, |
| 8 | 00:01:41,250 --> 00:01:51,780 | how we worked up into that weekly mean threshold, the bearish order block, this shaded area doesn't look as clean, you'll notice the weekly fair value got |
| 9 | 00:01:51,780 --> 00:01:59,850 | before we dropped down into the daily chart, as you can notice up here, it doesn't look like a fair value gap on a daily chart. That's why I take your |
| 10 | 00:01:59,850 --> 00:02:09,420 | higher timeframe, PD arrays and transpose them into the lower timeframes. And when daily fair value gap here. And we see we worked into that level there. And |
| 11 | 00:02:09,420 --> 00:02:23,250 | now we had a really nice sell off last Friday. This down close candle right here. I'm watching how we open on Sunday and we trade on Monday. Because we have |
| 12 | 00:02:23,610 --> 00:02:34,920 | a potential order block, we might again want to return back up into this area written here. And the reason why I'm saying that is because we also have high, |
| 13 | 00:02:35,370 --> 00:02:47,100 | low higher high, which is a breaker. So it may want to come back up into this area here and this entire enclosed candle is the bearish breaker. So we have to |
| 14 | 00:02:47,100 --> 00:03:00,480 | be mindful that going forward. So you know gun to my head, I favor a rumble this low in how we do if at all trade below that low if it accelerates, and all this |
| 15 | 00:03:00,480 --> 00:03:15,330 | liquidity in here should be a likely draw longer term. hourly chart on Dollar Index, your set weekly fair value gap here. And I have the holiday for July |
| 16 | 00:03:15,360 --> 00:03:30,210 | highlighted here. opening price. On Monday, New York midnight opening price. So we can see the weekly power three, which is the open. If we were looking for |
| 17 | 00:03:30,210 --> 00:03:42,300 | shorting, obviously, you want to see it rally higher. The Thursday, which is what I mentioned in commentary earlier in the week, that they would be more |
| 18 | 00:03:42,300 --> 00:03:53,400 | favorable cleaner price action. Towards the end of the week because of the holiday. On Tuesday, July 4. Whether you celebrate July 4 or not in your outside |
| 19 | 00:03:53,400 --> 00:04:02,970 | the States doesn't matter, the market is gonna reflect that lower volume. So when we see this run here, it's occurring on Thursday. So generally not talking |
| 20 | 00:04:02,970 --> 00:04:15,420 | about this on my most recent Twitter space. The idea of trading Mondays and when not to trade Mondays. I covered that yesterday in about an hour and a half audio |
| 21 | 00:04:15,420 --> 00:04:26,760 | presentation on Twitter. And the normal procedure is we want to try to find ourselves before Wednesday of the week of nonfarm payroll Friday, because there |
| 22 | 00:04:26,760 --> 00:04:35,100 | was a holiday. And because of that being the case, I felt that we'd have a lot cleaner price action on the latter portion, which would be Thursday and Friday, |
| 23 | 00:04:35,460 --> 00:04:45,510 | and I'm delineating that Thursday, here at midnight, New York local time. And we see we dropped down, returned backing into the Monday New York midnight opening |
| 24 | 00:04:45,510 --> 00:04:56,760 | price. We rally and also notice all the work around that price level here. A lot of respect to that. And then we have the Judas swing. We rip higher to get the |
| 25 | 00:04:56,760 --> 00:05:10,020 | buy side here and then we drill back down, look at the bodies staying real close to the high of that weekly fair value gap. Remember, this pink area here is |
| 26 | 00:05:10,500 --> 00:05:20,760 | derived from the weekly chart. So this right here indicates again soon as this candle closes, and this one opens, rallies up and start to trade lower. We can |
| 27 | 00:05:20,760 --> 00:05:31,770 | trust the fact that this high and that high here, all this was a run on liquidity. So any rally up, we would just watch and see if it is held at bay. |
| 28 | 00:05:33,420 --> 00:05:44,310 | And kept from going any higher at the consequent encouragement of the high to the close that candle. So it would be basically around the high of one Oh 3.4 to |
| 29 | 00:05:44,730 --> 00:05:55,020 | one there abouts into the market works. Its way lower. On the lower end of that weekly fair value got the pink shaded area, we hit it as resistance held as |
| 30 | 00:05:55,020 --> 00:06:06,270 | resistance and then sharp break below here, we open come right back up for immediate rebalance. That radar has taught you months ago that immediate |
| 31 | 00:06:06,270 --> 00:06:18,030 | rebalance is very, very powerful. So if we had a move lower than that low here, this is all to do swing. So that Judas swing there is indicative of |
| 32 | 00:06:18,060 --> 00:06:30,090 | manipulation, a stop run and before stop run, we have that bias. And if we were looking for lower prices, and targeting this old low down here, using that old |
| 33 | 00:06:30,090 --> 00:06:40,200 | fear of a gap on the weekly chart that displays and below that low is on this candle right there. In the very next candle, we're opening up, rally back up to |
| 34 | 00:06:40,200 --> 00:06:51,780 | this candles low, so there's no fear of a gap between immediate rebounds. And the market does that it's going to be in a quick hurry sudden, urgent price |
| 35 | 00:06:51,780 --> 00:06:59,910 | delivery to get to a specific level of liquidity or inefficiency. So we can see obviously, the liquidity will be over here and drops down aggressively for that |
| 36 | 00:07:00,000 --> 00:07:11,850 | during the Non Farm Payroll Friday. All of that, again, is the Judas swing. So weekly power three, we open rally up mix the high of the week and then trade |
| 37 | 00:07:11,850 --> 00:07:25,740 | lower all inside of the latter portions of the week, Thursday and Friday. Zooming in on to a 15 minute timeframe for Dollar Index. Again, here's that |
| 38 | 00:07:26,430 --> 00:07:33,450 | Monday, New York minute opening price, we extend that throughout the entirety of the week, we have a fair value gap in here. We trade up into that during the New |
| 39 | 00:07:33,450 --> 00:07:49,770 | York open. And it is the 830 on our payroll Friday report, we break down last up close candles consecutively. That is the bearish order block that closing in of |
| 40 | 00:07:49,770 --> 00:07:59,610 | that price point rate, they're rallying right up to here perfectly to the opening price. This is the change in estate delivery, the algorithm will refer |
| 41 | 00:07:59,610 --> 00:08:15,930 | back to that price right there, your rebec up into it drop aggressively for the South Side. Your dollar, everything would expect in the dollar index would be |
| 42 | 00:08:15,960 --> 00:08:25,890 | obviously reversed here. I've been calling your attention to this weekly volume imbalance for months now. And while we did retrace back down to this bullish |
| 43 | 00:08:25,890 --> 00:08:32,970 | order block, we rallied created a fair value gap we've had multiple times trading down into it. In total, we would want to see this area here act as an |
| 44 | 00:08:32,970 --> 00:08:41,310 | inversion fair value gap and it needs to trade above it, find it as support, and then take into consideration the buy side and then eventually up into the weekly |
| 45 | 00:08:41,310 --> 00:08:52,620 | volume and balance. So if we do in fact get lower prices on Dollar Index, I really favor seeing straight up into the 111 111 3111 and a half. And how far we |
| 46 | 00:08:52,620 --> 00:08:58,980 | get into this weekly volume imbalance want to see that. But that's the longer term draw on liquidity gun to my head, I think that's what we're gonna try to |
| 47 | 00:08:58,980 --> 00:09:10,020 | reach for. on the daily chart, here's this relative equal highs it's by side in the weekly volume and balances above us their weekly fair value gap. And again, |
| 48 | 00:09:10,020 --> 00:09:18,300 | we're treating this as an inversion fair bank gap. So on this, again, making reference to it here because it's a weekly PD array, but the logic is we're |
| 49 | 00:09:18,300 --> 00:09:26,070 | looking for it to act as support, it doesn't need to come back down and touch it again. It is something that I'd like to see and if it does, it would promote the |
| 50 | 00:09:26,070 --> 00:09:36,930 | idea of maybe tape reading it or demonstrating it. Let's now close candle is the bullish order block. And then we also had again, dug into this weekly fair value |
| 51 | 00:09:36,930 --> 00:09:46,200 | gap which is a discount. We'll be looking for a run up into these two premium arrays right there. Short term will be the buy side here. How we trade above |
| 52 | 00:09:46,200 --> 00:09:57,300 | that. Again, think about what I said for the dollar index. It's short term low for the dollar how we trade below that would be new respective of this, this |
| 53 | 00:09:57,300 --> 00:10:05,100 | high here as well. We want to see it trade above it and agree recently moved towards these relative equal highs, I don't think it run a bump these highs and |
| 54 | 00:10:05,100 --> 00:10:12,690 | then break them and then go lower. I think if we're going to go above there, we're going to treat definitely inside that weekly volume event. So I would be a |
| 55 | 00:10:12,720 --> 00:10:19,080 | little leery being bearish on Euro. Here's the hourly chart for Euro dollar, |
| 56 | 00:10:20,220 --> 00:10:31,830 | you can see the bytes on liquidity up here, again, that weekly inversion of a gap. And we have a boss on balance efficiency here. Extending that forward. See, |
| 57 | 00:10:31,830 --> 00:10:39,120 | we worked off of the daily bullish order block, which is that line right there, I made a little bit thicker so that we can see it. And then we have this down |
| 58 | 00:10:39,120 --> 00:10:51,570 | close candle here 16 In a bullish order block. And then we have this here. Now what I'm annotating here is really a two hour order block. So this range from |
| 59 | 00:10:51,570 --> 00:11:07,980 | high to low, all of this right here. We'll be encapsulated in a two hour order block to two hours of time was a little bit longer term or larger order block, |
| 60 | 00:11:07,980 --> 00:11:16,290 | but I'm representing it on the hourly chart. So when I'm doing order block theory, I'm actually toggling through all the timeframes, even timeframes that |
| 61 | 00:11:16,290 --> 00:11:24,360 | are outside the normal range, like everybody's familiar with the monthly, weekly daily for our one hour, 15 minute timeframe and then whatever it is below 15 |
| 62 | 00:11:24,360 --> 00:11:35,100 | minute you might like I will look for multiple timeframes in between the standard go to timeframes and a perfect representation that would be is how I'm |
| 63 | 00:11:35,400 --> 00:11:46,830 | teaching you the intraday charts on like silver bullets and or the model 2022. On my YouTube channel, I'll take you down to a five minute chart, then from five |
| 64 | 00:11:46,830 --> 00:11:58,770 | minutes, we drop down to a four minute 321. And this year, you've learned how I use even less than a one minute chart for a 32nd 15 second five second chart |
| 65 | 00:11:58,950 --> 00:12:12,210 | interval. All of those ideas are a top down approach. But order block theory really leans on the understanding of where we are in the price delivery |
| 66 | 00:12:12,210 --> 00:12:20,610 | continuum. So you're not going to be able to just simply look at one specific candle up or down and didn't assume that that's an order block. There's a lot of |
| 67 | 00:12:20,610 --> 00:12:30,780 | things that have to come to your understanding. And I won't be doing that in videos that the order block theory, I'll be teaching that solely in book format. |
| 68 | 00:12:31,500 --> 00:12:45,690 | But I'll have things on this YouTube channel that will be helpful in in studying that. So we can see we have a breaker here. Okay, and that's what specifically |
| 69 | 00:12:45,690 --> 00:12:57,720 | the order block is that's being referenced. And how is it a breaker, we have a swing low swing high swing low, this lower than that one, relative equal lows, |
| 70 | 00:12:57,870 --> 00:13:08,460 | but inside of that range between high, low and low. What do I have here I have a order block, I have a breaker, I have a by certain amount. So it's not an |
| 71 | 00:13:08,460 --> 00:13:16,590 | efficiency, any one of those PD arrays could be utilized for you, that would be your multiplier, I'm just annotating them that we can see and decide which one |
| 72 | 00:13:17,100 --> 00:13:28,890 | appeals to you. Okay, if neither of them appeal to you, and then it is what it is it's fine. But we can see we rally here we open trade down hit the breaker |
| 73 | 00:13:29,790 --> 00:13:39,510 | then rally really nice through the weekly inversion fair value gap. And I would have enjoyed seeing it trade back down into it just to touch it one more time, |
| 74 | 00:13:39,720 --> 00:13:51,120 | much like this right here that it might want to trade down into that. But with this gap here, I would not want to see the high of that candle which is the low |
| 75 | 00:13:51,120 --> 00:13:58,590 | of the busy button mouse on efficiency. I would not want to see that or consequent encouragement which is half of this shaded area here. I would not |
| 76 | 00:13:58,590 --> 00:14:10,710 | want to see that traded through. Okay, so as long as we're above all that I'm bullish on Eurodollar fitting a timeframe on Euro okay, you can see again New |
| 77 | 00:14:10,710 --> 00:14:21,090 | York open on non farm payrolls Friday we dropped down into the daily bullish order block inside of consequent encouragement of the boss Annabelle Solsona |
| 78 | 00:14:21,090 --> 00:14:30,630 | efficiency again before we dropped down to 30 minute time frame it's that blue shaded area rewind the video you'll see that this run into this there's two PT |
| 79 | 00:14:30,630 --> 00:14:42,210 | eraser being hit. Consequent corrosion of the boss Annabelle Sussan efficiency was that blue shaded area and the daily bullsh Ottawa so between that and add to |
| 80 | 00:14:42,210 --> 00:14:52,920 | it if you want in use the last enclosed candle right in here, so order block consequent curriculum Bessie in daily order blocks there's a confluence of |
| 81 | 00:14:52,920 --> 00:15:07,950 | multiple things with inside the New York open kill zone which is 7am to 9am New York local time and heat 30 News embargo lifting our payroll numbers, we rally |
| 82 | 00:15:07,950 --> 00:15:16,500 | up and come back down, hit that breaker, rally down close candle here even though we run away from it, we trade back down until once more that day would |
| 83 | 00:15:16,500 --> 00:15:25,050 | have been a buy. And a rally and we have this gap here. So think about the midpoint of the shaded area here. As long as we're above that, we're looking for |
| 84 | 00:15:25,050 --> 00:15:38,190 | higher prices more specifically aiming for buy side and or the weekly volume imbalance. E Mini s&p Here is the weekly chart. And we have a weekly volume |
| 85 | 00:15:38,190 --> 00:15:47,280 | imbalance there as well haven't quite got into it yet. We traded down about halfway of this down close candle here. So it's really important to see how we |
| 86 | 00:15:47,280 --> 00:15:56,520 | trade this week. I'm not trying to pick the top. But I like the idea that we stopped halfway in this down close candle here. We already traded into this |
| 87 | 00:15:56,520 --> 00:16:06,870 | inefficiency there. So I think this might just be a reason to retrace back into this range. And then expand up in that weekly volume balance between this week |
| 88 | 00:16:06,870 --> 00:16:14,400 | in the next two weeks or so will work inside that range. That's what I'm expecting. Obviously, all that can change on Sundays opening, I'm just giving |
| 89 | 00:16:14,400 --> 00:16:24,180 | you my forecast based on what we have here on a closing basis of Friday. And not knowing how we're going to open there's all kinds of things that could obviously |
| 90 | 00:16:24,180 --> 00:16:35,340 | change it, where we open how we trade Sunday going into Monday's opening. daily chart here, okay, you can see we just fell short of that weekly volume |
| 91 | 00:16:35,340 --> 00:16:48,810 | imbalance. And we have several things in here I'm looking at, we had the very gap here that we worked off of, we have a volume imbalance right there. And if |
| 92 | 00:16:48,810 --> 00:17:03,240 | we trade down once more that coupled with this last enclosed candle, I wouldn't want to see anything below 4400 on a closing basis, I would wouldn't be |
| 93 | 00:17:03,330 --> 00:17:16,200 | uncomfortable for it to go right down there, Sunday into Monday and then try to make another move higher. But until we take out that 4400 On a closing basis, I |
| 94 | 00:17:16,200 --> 00:17:25,410 | don't want to try to pick a top on es so we could just bang around in here. As long as we keep this order block intact. You know, we're good. If we lose this |
| 95 | 00:17:25,410 --> 00:17:35,790 | order, what is done close candle here, my attention goes right to this area right there. Okay, so this spot and a balance or some efficiency, you know, 4300 |
| 96 | 00:17:35,790 --> 00:17:46,650 | or so that would be if we take out that low. That's where we're going. But I don't see that yet. And I would favor you obviously a little bit lower in this |
| 97 | 00:17:46,650 --> 00:17:59,220 | volume and balance. And if at all trading into this candles Hi, how we do that, if at all will be helpful to me at that time seeing it. So it certainly looks |
| 98 | 00:17:59,220 --> 00:18:10,800 | heavy in here. Looks really like it once it knew it. It opened rallied up immediate rebalance. It could accelerate progressively lower. But I'm trying to |
| 99 | 00:18:10,800 --> 00:18:19,080 | avoid like preach and teach to you all. I'm trying to avoid trying to pick a top. So this could easily just come right back up and make a higher high |
| 100 | 00:18:19,080 --> 00:18:30,450 | internet weekly volume. So then give up the ghost entirely and then go lower. Or sorry to the upside. I'm right now waiting in electing to see how we open Sunday |
| 101 | 00:18:30,750 --> 00:18:42,330 | and how we trade overnight into 930 opening on Monday morning. So it kind of gives you a wait and see motive that I'm adopting for this beginning of the new |
| 102 | 00:18:42,330 --> 00:18:53,970 | week. All right, hourly chart, s&p Notice that we are on electronic trading hours that will change as I go through the slides because I'm going to teach you |
| 103 | 00:18:53,970 --> 00:19:05,580 | how to utilize both to get a better depiction of what price is actually trying to do. I like the idea that they have very, very smooth highs up in here a fair |
| 104 | 00:19:05,580 --> 00:19:14,850 | value gap there. We rallied up into that fair value gap and then shoot it back down into the mindset of balance. So some efficiencies This is a sippy sauce on |
| 105 | 00:19:14,850 --> 00:19:26,340 | a balanced by time efficiency classification within the PDA re category of a fair value gap, this is a very get to that shaded in blue. But this fair value |
| 106 | 00:19:26,340 --> 00:19:35,070 | gap is a busy so bites out of balance also an efficiency sell side and balance by time efficiency deficiency. What is it inefficient by side that means up |
| 107 | 00:19:35,190 --> 00:19:44,910 | upside delivery you see a ribbon there and hits it there. Once it fills that little area up with upside delivery and it leaves it's fine. It's ready to go to |
| 108 | 00:19:44,940 --> 00:19:53,520 | another discount array or sell side liquidity. It's interested in see that we didn't take out that low. So I'll be looking to see how we do that if |
| 109 | 00:19:53,520 --> 00:20:05,460 | at all on Sunday. I'd like to see it. Gap lower trade up the low of this By sending mail SOS inefficiency, and then rip into this outside liquidity here, if |
| 110 | 00:20:05,460 --> 00:20:13,650 | we accelerate to the downside, your attention goes right in here. Okay, so what I was mentioning on the daily chart, this is a much more refined area where sell |
| 111 | 00:20:13,650 --> 00:20:21,960 | side is residing, how far below those relative equal lows gonna go that gap right there. Okay. And if we accelerate through that, and then obviously, you |
| 112 | 00:20:21,960 --> 00:20:34,350 | have to look below these lows, as I was mentioning on the daily. Right, now we're gonna get to a little bit more in depth discussion about inefficiencies, |
| 113 | 00:20:36,300 --> 00:20:48,240 | gaps in how to use this information. One hour chart now with regular trading hours, so the only thing I've done was take the previous amount of price data |
| 114 | 00:20:48,930 --> 00:20:55,410 | and toggle this little right from electronic trading hours to regular trading hours and ready to trading hours is where you're going to see the gaps from the |
| 115 | 00:20:55,410 --> 00:21:07,920 | previous session to where we open up the next day at 930. So its settlement price, previous day, and then where we open at 930, whatever the distance is |
| 116 | 00:21:07,950 --> 00:21:18,540 | separating the settlement price of the previous day where we open at 930, New York local time. That's our opening range. Okay, so the opening range gap acts |
| 117 | 00:21:18,540 --> 00:21:34,020 | and performs in the same manner as we would expect a weekly volume imbalance. Okay, so when we look at price gaps like this, okay, I want you to think about |
| 118 | 00:21:34,590 --> 00:21:46,050 | how markets efficiently deliver price. Okay, I taught this analogy, using a paint roller. Okay, and imagine this white shaded area background is a wall in |
| 119 | 00:21:46,050 --> 00:21:56,790 | your house. And you want to paint in these little areas where you need to have paint applied. Okay, so maybe you've already painted your house. And the paints |
| 120 | 00:21:56,790 --> 00:22:04,620 | now faded, or there's handprints like, like a child, like I had five kids. And obviously, they would put their hands on the walls and make marks and such and |
| 121 | 00:22:04,620 --> 00:22:13,560 | we'd have to have the walls painted. And some kind of blemish or some kind of inefficiency and pain exists between these two candle bodies. Okay, this candles |
| 122 | 00:22:13,560 --> 00:22:29,850 | body here and as candles body here, between that. opening price net opening price, there's a separation of price delivery, that did not have your body. So |
| 123 | 00:22:29,850 --> 00:22:36,300 | I'm highlighting that and extending it all the way through. When I show you these ranges, I'm not going to drop down to the lower timeframes, the homework |
| 124 | 00:22:36,300 --> 00:22:44,970 | assignment for you is to have these on your charts, and then drop down to the lower timeframes on electronic trading. Okay, so there's no that I'm showing you |
| 125 | 00:22:44,970 --> 00:22:54,870 | something so that way you can observe and identify things and discover it on your own and have that aha moment. But this distinction here, between these two |
| 126 | 00:22:54,870 --> 00:23:05,940 | candles opening opening here, there's no bodies between these two price points. So that inefficiency, you want to extend those out in time because they'll |
| 127 | 00:23:05,940 --> 00:23:16,350 | eventually be offered, buy side and sell side. I mean, upside and downside delivery. Here, we only had a partial delivery of upside in in drops. So from |
| 128 | 00:23:16,350 --> 00:23:26,010 | this point here, up to here, that is the real inefficiency that remains because we've already had this partial in this movement down. So think of it as a paint |
| 129 | 00:23:26,010 --> 00:23:39,570 | roller, up and down. So from this opening price in that opening price, up to right there. It has been offered delivery of price. So there's a real separation |
| 130 | 00:23:39,570 --> 00:23:51,210 | between this high and that candles, opening price. There's a distinct inefficiency there. But nonetheless, you can see how we respected that opening |
| 131 | 00:23:51,210 --> 00:24:00,990 | price there and look how we're treating it with these bodies here. And then we have another gap there. We have a gap here. But I'm showing you how inside this |
| 132 | 00:24:00,990 --> 00:24:12,990 | range, you're anticipating expecting price to deliver both sides up and down. That's an efficiently delivered price. You can see how we worked off the low |
| 133 | 00:24:12,990 --> 00:24:23,280 | here. And we had another gap there. So it wants to reach up and that every time I'm showing you one of these ranges, I want you to go into not regular trading |
| 134 | 00:24:23,280 --> 00:24:36,750 | hours, but electronic trading hours and study how price delivers. You'll see how it's real dynamic support resistance. It's not readily understood or seen by |
| 135 | 00:24:36,960 --> 00:24:46,860 | most traders. And I mean, hobbyists have been teaching it this year, but you won't see an inbox okay, you're gonna look at it right away and think it's Oh, |
| 136 | 00:24:46,860 --> 00:24:54,510 | it's supplying to me. Oh, or it's classic Support Resistance. I promise you there's no books out there with support resistance with this idea. Isn't there? |
| 137 | 00:24:54,600 --> 00:25:06,570 | Okay? They may see a gap, but they're not looking at gaps. multiple times in the future, okay, and as soon as price would go from here to here, they would |
| 138 | 00:25:06,570 --> 00:25:14,310 | consider that gap closed. And there's no more concerned about. And that's what separates me from retail. Because the fact that gap was created, the algorithm |
| 139 | 00:25:15,480 --> 00:25:22,980 | will refer back to those three price points, which is the low cost quoting project, which is a midpoint of the gap and in the high. So where are the |
| 140 | 00:25:23,010 --> 00:25:33,420 | extreme boundaries, high and low. And whatever the middle point is, those three specific price points are very, very sensitive. And if you want to go one degree |
| 141 | 00:25:33,450 --> 00:25:46,560 | beyond that, you can split that range up in quadrants, so the first 25% 50% 75% of the entire inefficiency, and then the high of the inefficiency. And that's |
| 142 | 00:25:46,560 --> 00:25:56,730 | what I want you to do for your electronic trading hours study. So look at all of the price action in here. Even though there's gaps missing price data here, in |
| 143 | 00:25:56,730 --> 00:26:09,510 | electronic trading hours, there is no gap. It's it's actually being traded through from here to here. And then from here to here. So that's one there. The |
| 144 | 00:26:09,510 --> 00:26:20,130 | other one is here. Getting a and what you're doing in is toggling it from regular trading hours to electronic trading hours, and your study how price |
| 145 | 00:26:20,130 --> 00:26:28,080 | delivers inside this range here. You don't want to have all the inefficiencies on the chart same time so that way it helps you track what you're looking for. |
| 146 | 00:26:28,440 --> 00:26:39,960 | And study time of day. Look for inefficiencies think like silver bullets in the London session. In the New York session, both am session and pm session. You're |
| 147 | 00:26:39,960 --> 00:26:51,720 | going to be surprised to see how much precision these levels offer, not just the high and the low but consequent encouragement and 75% 50 and 25% of those |
| 148 | 00:26:51,750 --> 00:27:03,090 | respective ranges. And then lastly, the one here. Okay, so that way you can see these are three homework assignments I want you to go through on your timeframes |
| 149 | 00:27:03,780 --> 00:27:12,360 | lower than obviously the one hour chart. And you'll see that these respective inefficiencies have really interesting characteristics where setups conform |
| 150 | 00:27:14,910 --> 00:27:27,450 | right for demand timeframe. I taught in the one set up for life tutorial on my YouTube channel. It goes over how to classify specific liquidity pools and how I |
| 151 | 00:27:27,450 --> 00:27:37,410 | break down these and look back at very specific points of liquidity. And then the london session highs in london session lows. We have a salsa liquidity pool |
| 152 | 00:27:37,410 --> 00:27:50,760 | here, Thursday, New York, pm session Basa liquidity, London session I said liquidity sell side here. That would be the london session for this day here and |
| 153 | 00:27:50,790 --> 00:28:02,490 | hit Non Farm Payroll Friday we open up rally up take the buy side here on the Thursday New York pm session. And then we rip lower to take out that London |
| 154 | 00:28:02,490 --> 00:28:13,050 | session sells adequately. And we rally up one more time trade back down to bullish order block and then rip higher attacking the Thursday london session by |
| 155 | 00:28:13,050 --> 00:28:22,530 | side liquidity pool. Then in the afternoon, we reverse course and go all the way back down to attack the rejection block in the original sell side liquidity pool |
| 156 | 00:28:22,560 --> 00:28:30,330 | it was interesting to see it not take out that low. So I think it has unfinished business going into Sunday's opening. So again, I'd like to see us open lower |
| 157 | 00:28:30,330 --> 00:28:40,710 | the gap lower in how we trade lower if at all below that low, just be mindful this little time gap here, it might give you a run down there, go into this gap |
| 158 | 00:28:40,710 --> 00:28:50,670 | and then rip higher and defer a run below that low if it's going to do it. Or if it does break lower it can just be a quick sudden run but I just want you to be |
| 159 | 00:28:50,670 --> 00:28:58,200 | aware of that little gap right there. In the event that we should we start running for this low this could be one of those little speed bumps that causes |
| 160 | 00:28:58,200 --> 00:29:07,320 | the new full backup in the range and then at a later time take that low out so it's a matter of wait and see see how we trade on some of these opening price in |
| 161 | 00:29:07,320 --> 00:29:21,630 | in the Monday right five minute chart on E Mini s&p Seeing respective liquidity pools annotated here can you can see nice order block trading into a here. This |
| 162 | 00:29:21,630 --> 00:29:33,360 | is a classic optimal trade entry trade as well and starts to accumulate in rally higher tearing into the Thursday london session about liquidity in the market |
| 163 | 00:29:33,360 --> 00:29:44,760 | reverses it breaks down I did Long's all through here on NASDAQ and then I shorted it going into the pm session on NASDAQ. So I didn't do any work on s&p |
| 164 | 00:29:44,760 --> 00:29:45,150 | Here. |
| 165 | 00:29:47,220 --> 00:29:58,200 | Here is the regular trading hours on a five minute chart and taking us up back up this low here. Now why am I using this low? In that the closing price here |
| 166 | 00:29:59,430 --> 00:30:10,260 | there's this A civic pattern here. If you are a student of mine that had been with me for a while, you know what this pattern is, I'll give you a second, I'll |
| 167 | 00:30:10,260 --> 00:30:18,300 | talk about something else, they'll come back at the minute. But here's the Thursday london session by liquidity, it rallies up into that, and then trades |
| 168 | 00:30:18,300 --> 00:30:29,730 | up into that low here, and then starts to break lower and aggressively moves towards the relative equal lows guy here. So this is a classic ICT market maker |
| 169 | 00:30:29,730 --> 00:30:43,050 | sell model. So we have accumulation, re accumulation, Smart Money reversal, low risk. So distribution, redistribution, second stage distribution, basically, an |
| 170 | 00:30:43,050 --> 00:30:57,720 | aggressive sell off into sell side liquidity. This pattern over here is a breaker. Okay, so it's a high, low, higher high. So you always want to refer to |
| 171 | 00:30:57,720 --> 00:31:08,280 | that, even if there's a gap like this, if there's ever a breaker there, always give the opportunity to see if the market will respect that not so much this one |
| 172 | 00:31:08,280 --> 00:31:17,550 | here, because this is a is an opening range as well. So where we close here and opened down here, you would have that shaded so extending it in the future, you |
| 173 | 00:31:17,550 --> 00:31:26,910 | can see we've dug up into that as well. Again, you would note the opening and the close respectively on these two candles, and extend that range forward. |
| 174 | 00:31:27,360 --> 00:31:39,360 | Okay, and you can see that what we basically did here, we we stayed inside that range. And then we get down here to that gap. That huge inefficiency. You don't |
| 175 | 00:31:39,360 --> 00:31:52,740 | want to just go right back to the previous sessions closing price where I like to usually do that. If we have a breaker, a breaker will many times disrupt that |
| 176 | 00:31:52,950 --> 00:32:02,730 | total closure of the gap. So how do I know certain gaps won't entirely close? There are certain things obviously, that I've already taught you. This is |
| 177 | 00:32:02,730 --> 00:32:11,940 | another one here. Okay. So if there's a breaker inside the range that would be considered for a gap closure. You want to consider where that down close candles |
| 178 | 00:32:11,940 --> 00:32:30,060 | low is. And you can see we have respected that here. Alright, one minute charts. s&p, you can see we have a higher low in NASDAQ, we have a lower low. So I |
| 179 | 00:32:30,120 --> 00:32:41,940 | elected to go with the NASDAQ simply because I had some students asking me you, why am I only doing s&p Can I do something with NASDAQ. So I wanted to NASDAQ |
| 180 | 00:32:41,940 --> 00:32:50,550 | and basically beat it all up. I went long in it. And then I went short. And I didn't get the last hole run lower on the pm session. I didn't explain it in a |
| 181 | 00:32:50,550 --> 00:33:01,290 | recording. And you can watch me do live executions in a video only to channel for Friday's pm session for NASDAQ. I show all the executions on the upside. And |
| 182 | 00:33:01,290 --> 00:33:11,550 | I did some live executions in management on the lower end for the NASDAQ. But I mentioned how I felt it knew it could go lower. But I didn't have the time to be |
| 183 | 00:33:11,550 --> 00:33:27,120 | able to spend managing the entirety until the close but really nice run into lower low here higher low on s&p, s&p Divergence for s&p, s&p rally higher. |
| 184 | 00:33:29,040 --> 00:33:42,660 | NASDAQ followed suit. And then we have a disruption up here. So we have short term low here, which helped me time the potential intermediate term. Hi, I did |
| 185 | 00:33:42,660 --> 00:33:50,640 | try to get a trade. And I'll go into this here on this respective area on NASDAQ. But I'm not going to show you here because I'm going to actually include |
| 186 | 00:33:50,640 --> 00:34:01,680 | it in the discussion tomorrow for my macros lecture. But the I was trying to show a losing trade because everybody's like you always show a winning trade, |
| 187 | 00:34:01,680 --> 00:34:11,550 | you try to share a losing trade. So I was really trying to be facetious and put it a short one, and have stop loss really, really tight so that we can stop me |
| 188 | 00:34:11,550 --> 00:34:20,670 | out. And I was gonna show it on Twitter just be facetious. But it ended up making a run where I knew it was going to be profitable. So I closed the trade |
| 189 | 00:34:20,700 --> 00:34:31,740 | on and again, it would be on that and you'll you'll see it's actually on my video prior to this one. So let's go back one more day. And you'll see it but |
| 190 | 00:34:31,740 --> 00:34:44,970 | the the idea was that you the s&p doesn't really have a clear swing low that will be clear. When we dropped lower the NASDAQ does. So I mentioned it in one |
| 191 | 00:34:44,970 --> 00:34:55,500 | of the recordings I placed on my Twitter feed. And once I knew it was running in my favor, I was like okay, I know what this is. This is a market maker sell |
| 192 | 00:34:55,500 --> 00:35:05,490 | model and all this consolidation, it wouldn't want to go below these relative lows. And we saw that actually happened here. But counseling, this rejection |
| 193 | 00:35:05,490 --> 00:35:13,200 | block, in addition to all this here, so there'll be a nice area for sales or liquidity, you can see we did in fact, reach down into it. For silver bullets |
| 194 | 00:35:13,200 --> 00:35:21,750 | between 10 o'clock in the morning in 11 o'clock in the morning, New York local time, we have a fair value gap there. After hitting an order block in phire. Get |
| 195 | 00:35:21,750 --> 00:35:32,700 | there, we rally higher trade back down in silver bullet run for relative equal highs. So buying here in getting out there just at that high here. That's enough |
| 196 | 00:35:32,700 --> 00:35:41,070 | for a trade, you don't even have to hold on to any of this up here. In the pm session, silver bullet, same idea this in reverse, had consolidation. So you |
| 197 | 00:35:41,070 --> 00:35:50,820 | wouldn't you take a silver bullet if you're seeing consolidation like this, have this in your notes. Wait for displacement, we see that here. Very energetic drop |
| 198 | 00:35:51,960 --> 00:36:03,120 | Fairbury got sell short there. And again, reach for five handles minimum. And if we had this area now here for buyside. It will many times want to offer a |
| 199 | 00:36:03,120 --> 00:36:16,650 | redelivery to that as well, because every old liquidity pool acts like an inefficiency. It'll maintains, revisit it and act as the opposite. So we are |
| 200 | 00:36:16,650 --> 00:36:27,720 | seeing by side as a draw here. The algorithm will refer back to this area here and drill back down into it. But it has to be some measure of why it was drawn |
| 201 | 00:36:27,720 --> 00:36:36,330 | to four by side. It's not just simply resistance resistance broken turned support is notice it didn't do anything for sport. So I've already canceled that |
| 202 | 00:36:36,330 --> 00:36:46,380 | idea. You already think oh, he's just comments for injustice, no. There's a manner of taking this information and really understanding what would be support |
| 203 | 00:36:46,380 --> 00:36:55,740 | to buy or a target for a draw on liquidity. So again, I have a lot of lectures that will come that describe how to do all this stuff, but it can't be taught |
| 204 | 00:36:55,740 --> 00:37:03,810 | obviously in one sitting. There's a lot of things that are at my disposal. And I want to make it available to you but everything a little bit at a time because |
| 205 | 00:37:03,810 --> 00:37:05,610 | it's already probably too much for most of you. |
| 206 | 00:37:11,190 --> 00:37:16,980 | We found something in this that was insightful and helpful. And until I'll talk to you next time. Be safe |