ICT YT - 2023-08-07 - ICT Mentorship 2023 - Proper Learning and The Importance Of Journaling
Last modified by Drunk Monkey on 2023-08-12 18:10
Outline
00:18 - The importance of journaling and price action.
- Welcome back. This is a brief review of the importance of journaling, and why it is important for new traders to spend time with it before trying to demo their trade or paper trade.
- It is easy to get lost in the chaos of trading action.
03:14 - How to read price action and backtesting.
- Back testing is not about taking a trade. It's not about going back and using a Forex replay or a market replay or market replay reports.
- The secret recipe to all of this is how much time you spend in a chart, not just gazing into it.
- No affiliation with any companies, no kickbacks, no affiliate link bonuses, no financial kickback from any companies. No affiliate marketing, no advertising.
- Orderflow is my orderflow, not the things that are bandied about in this industry as orderflow.
09:01 - How to annotate your chart.
- Nasdaq continuous charts, how to use them in trading view, and how the PDRA matrix is utilized throughout the timeframe higher to lower.
- Monthly chart, what it is that you identify in most recent months, what the last few candles refer to, and what is currently in that might be useful.
- Looking at the monthly timeframe is a review and showing an example of how you might want to journal.
- In annotations, write in comments that you saw it coming, even if you didn't really see it coming. You're conditioning your subconscious by recording pseudo experiences.
14:20 - annotate your charts.
- In the annotation section, be sure to include personal things that you want to include for that particular timeframe on that market.
- In your annotations, be careful not to overstate anything.
- I was anticipating the down close candle on September 21, 2021 to provide characteristics of a ict bearish breaker.
- The down close candles range between this candles low and high, and as candles high it's going lower right inside that shaded area.
19:17 - Where is the liquidity in the market?
- Where is their liquidity, that would be right above these highs here which are relatively equal, and you had the inefficiency in here, so is it required for them to come out to the breaker high.
- This is a monthly candle for August 2023.
21:55 - Your brain is the most powerful computer.
- Your brain is the fastest and most powerful computer that will ever exist, because it has a personality attached to it.
- Your journal is your best cheerleading vehicle, and it's also a way for you to build the most powerful trading money making manual you'll ever have.
- Buying books and courses is not the answer. Trading real-time is the answer to reading action.
- Taking everything from the monthly chart and transposing it down to the weekly chart is easy to do, and it's easy to toggle down to a weekly chart.
27:42 - Importance of closing gaps and consequent encouragement.
- Wicks and tails on candlesticks are treated as gaps. Every gap has a midpoint or equilibrium point, which is what is called consequent encouragement.
- The candle is a bullish order block, propulsion block, and higher order block down close candle that does not pass through mean threshold.
- Fear of a gap was formed on the monthly chart, so it's why it's annotated here as monthly fair value gap, bottom, balance and efficiency.
- Weekly bullish order block proportion block.
- We are anticipating price to go up, just the sucker in retail traders. The lesson is, misinformed street money and then delivery lower.
- The daily chart has its own specific PD arrays.
34:34 - The daily chart of the continuous contract.
- Nasdaq continuous contract. When the front month or nearby contract is traded when it expires, this chart will use the data from the new next nearby contract.
- The daily chart shows an imbalance from the candles low to the candlesticks high, which is a daily fair value gap inefficiency.
- The annotations have to keep referencing the time frame.
- Do this in your own charts and do months of it, not one day a week where you try to cram it all in one day. This should be a daily meditation for you, a day that you must journal.
- Become very good at reading, which will make you a better trader.
40:51 - Know what you’re looking for.
- It is important to anticipate that you will have months of doing this before you are comfortable with what it is you are trying to do.
- The silver bullet setup is time-based, so all of these things are potential candidates for you to build a model around.
43:29 - How to fall in love with price action.
- Cultivating a romance with action, writing love letters to future self, encouraging future self.
- How to cultivate the sweetest romance between you and action, to have a close-knit relationship, to be able to warm up and see when it starts trading real-time.
- Looking at the monthly and weekly charts, looking at the daily chart for a complete and comprehensive approach from the highest timeframes, monthly, weekly and daily, and every specific pdarray must be properly labeled.
- Monthly fair value gap city and consequent encroachment of the monthly fair value gaps.
49:40 - The fair value gap and support.
- You're not going to be the exception, stop arm wrestling it.
- The daily inversion, fair value gap, low inversion and high inversion are the three specific levels in the daily chart. The midpoint of an inversion is the middle of a inversion.
- The market will assume that the market is going to go all the way back up to here, because there is a liquidity void in the market.
- The bearish order block notice is the big beefy candle for the folks that like to say that order blocks are golfing.
55:18 - Inversion of the fairway gaps.
- The chances of it doing that are slim by far, and large many times you will see the inversion/fairway gaps given this type of movement.
- If it trades the higher the breaker, it means that it's not as bearish as you want it to be.
- By annotating a chart and seeing how the lower timeframes go through it is a little bit, but when it does that, if you're bearish, you're going to start to condition yourself and say, okay, this is acceptable.
- It also teaches you what by annotating your chart.
01:00:43 - The candlestick low and the inversion gap.
- Why the inversion gap is a mohawk, and why the market dynamics and the underpinnings of the marketplace are for it to go lower.
- The opening of the market on wednesday.
- When a premium array touches, it does deliver to anticipate a little bit of coloring outside the lines and not freak out thinking it's going to give way.
- The breakaway gap.
01:04:20 - Intentional order flow entry drill.
- Breaking down the bearish order block opening trade in the vega candle on friday.
- The weekly bullish order block propulsion trade, and why it didn't quite get there.
- The weekly profile was an obvious monday high. The week bearish profile that formed immediately after the daily fair value gap, sebi, was read delivered to on the monday action.
- On the wednesday, the inversion fair value, gapped lower, and extended past the daily range on the Wednesday extended past.
01:09:16 - The inversion fair value gap.
- This inefficiency was a fair value gap, meaning that has a lot of probability that it's going to go up to the midpoint of it, why shouldn't it go high?
- Friday was an easy short selling day with the bearish institutional order flow entry, drill and bearish order block.
- Daily inversion, fair value and daily inversion price action are balanced back and forth action on the four hour chart.
- Friday high is likely to act as what the high on Friday is not likely to go all the way through all of this.
01:15:16 - Immediate rebalancing of price action.
- Immediate rebalance is one of the strongest algorithmic signatures you will ever see in action.
- Daily fair value gap sibi is well balanced in the gray area.
- The importance of knowing what higher timeframes are showing you, and why the lower timeframes show a more refined rendition of delivery.
- The last timeframe to look at in this presentation, the hourly chart, and how each individual pdr is negated in the chart.
- Daily fair value gap city, premium, premium and discount levels, and why it is important to label each PD array.
- How to use the weekly premium with consequent encouragement.
01:21:25 - The convergence of the fair value gap.
- The 60-minute fair value gap is a convergence with the 4-hour immediate rebalance. It creates a breakaway gap.
- The candlesticks low is the high of the daily fair value city, which is the range of the candlestick's low to this candle's high.
- Drill, bang, sell, short sell, sell short, sell side, relative equal lows, sell-side.
- Non-farm payrolls takes out the lows after taking out the by-side and sell side. It runs both sides of the marketplace. It delivers again like gangbusters.
Transcription
| 1 | 00:00:18,060 --> 00:00:30,930 | ICT: Well, welcome back, folks. So we're looking at a rather brief review of the importance of journaling. And while I could have made this a strangely long |
| 2 | 00:00:30,930 --> 00:00:43,050 | video, I took more time actually doing the annotations, then this presentation will actually take to cover it. But I don't want you to discount the measure of |
| 3 | 00:00:43,050 --> 00:00:52,590 | importance that this topic has, because all of my profitable students, everyone has found their consistent model everyone that knows exactly what they're doing |
| 4 | 00:00:53,100 --> 00:01:02,700 | within price action, whether it be a day traders capacity, short term trader, position, trader, swing trader, whatever it is, they went through this process, |
| 5 | 00:01:03,090 --> 00:01:16,110 | they didn't go through a rushed pace of going out there and trying to get real profits before they were ready. And they spend time with this before actually |
| 6 | 00:01:16,110 --> 00:01:26,340 | trying to demo trade or paper trade. So if you'll give me a few minutes to kind of like, lay down some foundation here, it's really important that you listen to |
| 7 | 00:01:26,340 --> 00:01:36,210 | this part, especially if you're a new student, or if you are a student that has yet to find consistency, I promise you, it's this very thing that you're not |
| 8 | 00:01:36,210 --> 00:01:48,210 | doing. And you're probably not doing it long enough for your personal, unique experience to basically identify what it is that you want to be trading. Often, |
| 9 | 00:01:48,420 --> 00:01:56,700 | there are students that will come to me, and they'll watch just a few of my videos, or they'll watch something new that I released for the first time and |
| 10 | 00:01:56,700 --> 00:02:08,400 | teach on that specific element of my trading style. They want to rush into it thinking they understand every aspect of it. And they don't really incorporate |
| 11 | 00:02:08,430 --> 00:02:19,410 | this part of it. Because it's very easy to get lost in the chaos of price action, when you're just looking for one little thing, one component, one little |
| 12 | 00:02:20,010 --> 00:02:32,760 | cog in the wheel, that makes this machine go. And that being as simple as a fair value gap, an order block an optimal trade entry, or breaker, any one particular |
| 13 | 00:02:32,760 --> 00:02:44,460 | thing, in and of itself is not enough, you have to have a well rounded approach to reading price action, and the only way you're gonna get that and it's not by |
| 14 | 00:02:44,460 --> 00:02:56,280 | watching my videos. It's not by watching other people's videos, it's not watching me trade live, or even watching my examples. It's by you going into the |
| 15 | 00:02:56,280 --> 00:03:11,130 | charts doing this very thing tonight. Now, it Admittedly, I can understand how some of you, probably the majority of you are going to watch this video. And |
| 16 | 00:03:11,130 --> 00:03:23,700 | think you've already said this before. Or that's all well and good. But I don't have time for this, I need to make money. Or I gotta get to the point and find |
| 17 | 00:03:24,120 --> 00:03:34,020 | the trade setup for myself. And you'll be like one of those in my community where they'll complain that they don't know how to find their model, or they |
| 18 | 00:03:34,020 --> 00:03:44,880 | can't read price action, or they're confused about where price is going to go next. Or they'll be asking me after I get something correct in terms of where I |
| 19 | 00:03:45,330 --> 00:04:00,450 | call the market, they immediately they want to go and ask me what next. The folks that do this part of it. This aspect of learning how to read price action, |
| 20 | 00:04:00,450 --> 00:04:14,790 | which is back testing. Now back testing again is to me, it's not about taking a trade. It's not about going back here and using a Forex replay or a market |
| 21 | 00:04:14,790 --> 00:04:27,660 | replay or Market Replay reports. If you're using NinjaTrader. If you're just going back and looking at the numbers, okay, I want to talk to the crowd that |
| 22 | 00:04:27,660 --> 00:04:40,410 | uses NinjaTrader. You might see folks out there on YouTube or other mediums on social media and they'll post Market Replay reports and it says this is how many |
| 23 | 00:04:40,410 --> 00:04:53,400 | trades were taken both long and short. And here's the net results. And you're just seeing the numbers on unless you know what it is that you're doing. Why |
| 24 | 00:04:53,400 --> 00:05:06,720 | that specific price action should be delivering the way it should be or how the idea identify, that allows you to go in and repeat that same procedure, that |
| 25 | 00:05:06,870 --> 00:05:17,040 | protocol that would establish a reason to assume the market is going to go higher and lower. Why should the market go higher and lower? Why should the |
| 26 | 00:05:17,040 --> 00:05:31,530 | market go to a discount from a premium, or from a premium to a discount? Those factors in price action are critical for you to be able to be successful and |
| 27 | 00:05:31,530 --> 00:05:44,040 | consistent. But the secret recipe to all this is how much time you spend in a chart, not just simply gazing into it. With no real understanding of what it is |
| 28 | 00:05:44,070 --> 00:05:51,480 | you should be looking for, if that's where you're at. If it looks like a foreign language to you, when you look at these candlesticks, I promise you, it's |
| 29 | 00:05:51,480 --> 00:06:02,130 | because you have not gone through the step that we're going to cover tonight. Now, I've talked about it in length over the years. And there are many ways to |
| 30 | 00:06:02,130 --> 00:06:12,750 | record a journal experience for yourself. There are wonderful apps out there, I'm not going to name them by name, because you're going to assume I have some |
| 31 | 00:06:12,750 --> 00:06:21,990 | affiliation with them, which I have no affiliation with any company, I don't get kickbacks, I don't get affiliate link bonuses or I don't get any kind of |
| 32 | 00:06:21,990 --> 00:06:32,250 | financial kickback from any company, or anything that I say if I like something, it's the honest truth. And I'm sharing what I believe about. If I don't have an |
| 33 | 00:06:32,250 --> 00:06:42,720 | affinity for something, or if I say I don't like something, that's my opinion. And I want to remain that way, I get a lot of offers by companies that want to |
| 34 | 00:06:42,720 --> 00:06:57,840 | do some kind of affiliate program. And I don't do that because as soon as I do that, that makes me Well, in my opinion, someone that would be viewed as lead to |
| 35 | 00:06:57,840 --> 00:07:05,370 | say something because of some kind of payment that will be made to me. That's why I don't do any kind of advertising. That's why I don't do any kind of |
| 36 | 00:07:05,370 --> 00:07:12,570 | affiliate marketing, none of that stuff. And I can make a lot of money doing that. But I choose not to do that. Because I want you to trust my opinion. When |
| 37 | 00:07:12,570 --> 00:07:22,830 | I say something about something in particular, whether it be a broker, an application, some kind of resource or whatever. If I say something, it's used by |
| 38 | 00:07:22,830 --> 00:07:33,750 | me if I like it, that company, that resource that whatever it is the application, they did not pay me. And I wouldn't take anything from them, if |
| 39 | 00:07:33,750 --> 00:07:44,130 | they tried. So it's a very honest way of doing things. And I like to do that and everything that I do so that way, when you listen to me, You can trust me. And |
| 40 | 00:07:44,130 --> 00:07:54,030 | one of those things tonight, is trust me when I tell you that this is the very thing that you have not done enough of if you haven't found consistency yet, if |
| 41 | 00:07:54,030 --> 00:08:04,170 | you haven't found your model, if you haven't found the trust in understanding what orderflow is, my orderflow not the things that we see bandied about in this |
| 42 | 00:08:04,170 --> 00:08:16,110 | industry as orderflow. Everything in these candlesticks tells you everything that you need, you don't need to know volume, you don't need to know what the V |
| 43 | 00:08:16,110 --> 00:08:25,320 | Whap is, you don't know where the point of control as you care less. You just need to know where the inefficiencies are, and where are the liquidity above and |
| 44 | 00:08:25,320 --> 00:08:34,620 | below. And you need to know the time of day, what day that week you're at. None of that has anything to do with an indicator. None of it has anything to do with |
| 45 | 00:08:34,650 --> 00:08:46,590 | any kind of gimmick that you have to apply to your chart, you don't need any of that stuff. But this, I promise you, this is the very thing that you have to |
| 46 | 00:08:46,590 --> 00:08:56,010 | spend the most time doing. In fact, you're going to spend the rest of your career doing this very thing. If you want to run it like a business, if you want |
| 47 | 00:08:56,010 --> 00:09:11,220 | to be extremely precise, detail oriented. Consistent. This is how you get it. So we're looking at the NASDAQ and I'm showing you the NASDAQ continuous charts. So |
| 48 | 00:09:12,180 --> 00:09:16,980 | if you're a user of trading view, and I hope that you are because it makes learning from me a lot easier. |
| 49 | 00:09:18,930 --> 00:09:30,840 | The symbols and cue number one in the exclamation point. Okay, so if you put that into the symbol window on trading view, and you put it up on a one month |
| 50 | 00:09:31,230 --> 00:09:43,230 | timeframe, you'll see this very chart here. Okay, at the time of this recording, this is the time I captured a chart and I worked on a few hours capturing all |
| 51 | 00:09:43,230 --> 00:09:53,640 | the annotations, working out the details to show you this stuff. So like I said, I spent more time doing the actual slides, then it would take you to do the |
| 52 | 00:09:53,640 --> 00:10:05,160 | actual procedure of doing it. Okay, logging in your annotations and making In the higher timeframe, PD arrays visible on the lower timeframe. And I'm working |
| 53 | 00:10:05,160 --> 00:10:16,350 | with them on a day by day basis. And on the weekend, referring back to each day. Now, I'm not going to do the individual days today, because for the sake of |
| 54 | 00:10:16,350 --> 00:10:26,940 | brevity, and also for your homework, I'm going to give you all of the pertinent PD arrays that you should use on the lower timeframes, that being the 15 minute |
| 55 | 00:10:26,940 --> 00:10:38,910 | time frame, five minute time frame all the way down to the one. And if you're so inclined, less than one minute chart. So the same thing I'm using here, you |
| 56 | 00:10:38,910 --> 00:10:52,620 | would use for Eurodollar. If you're a forex trader, the dollar index, you could use this on the E Mini s&p, you can use it on any commodity, any market. Okay, |
| 57 | 00:10:52,620 --> 00:11:02,070 | so we're doing a top down approach. But we're doing it so that way, we can look at how the importance of the higher timeframe, down to the lower timeframe, and |
| 58 | 00:11:02,070 --> 00:11:13,650 | how the pdra matrix is utilized throughout the timeframe. higher to lower. So we're looking at the monthly chart here. And I want you to take a look at this |
| 59 | 00:11:13,650 --> 00:11:23,250 | and pause the video for a moment and think about what it is that you identify in most recent months. So in the last few candles in here, what the price refer to |
| 60 | 00:11:23,400 --> 00:11:32,310 | and what is presently in price that might be useful going forward. If you don't pause the video, I promise you, you're not getting the most out of the learning |
| 61 | 00:11:32,310 --> 00:11:33,270 | experience. |
| 62 | 00:11:38,280 --> 00:11:50,700 | Alright, for the folks that did not pause, I'm going to show you now. Alright, so here's the monthly chart. And looking at the monthly timeframe, I want you to |
| 63 | 00:11:50,700 --> 00:12:02,070 | see that kind of like this will be somewhat of a review, also showing you an example how you might want to journal. So you want to bring in your own unique |
| 64 | 00:12:02,070 --> 00:12:14,370 | personality to this. And this giving you the basic approach to annotating your chart, and how you might record some observations. But you might want to include |
| 65 | 00:12:14,370 --> 00:12:27,510 | a lot more self love, okay, something that you might want to do in your annotations is really write in those types of comments that you saw it coming. |
| 66 | 00:12:27,840 --> 00:12:36,540 | Even if you didn't really see it coming, you're conditioning your subconscious. By recording these pseudo experiences. That way you're tricking your brain into |
| 67 | 00:12:36,540 --> 00:12:45,660 | seeing something at a later time referring back to these as examples like on the weekend, or say a couple of weeks ago, you'll look at your journal. And by |
| 68 | 00:12:45,660 --> 00:12:58,200 | looking at them with these annotations and reading them out, again, your brain sees these PD arrays and the PD arrays are things like the fear a gap here, the |
| 69 | 00:12:58,200 --> 00:13:08,310 | breaker here and you're probably asking yourself, How could this be a breaker? Well, we had a high here we dropped down and then we went higher on the lower |
| 70 | 00:13:08,310 --> 00:13:19,500 | timeframes. This would look obvious as a breaker that this is also a down closed candle prior to this run up. So essentially it is a mitigation block. breakers |
| 71 | 00:13:19,500 --> 00:13:32,400 | are mitigation by default. So whether you identify that as a breaker which is or if you just want to refer to it as a mitigation block, you'd be correcting in |
| 72 | 00:13:32,430 --> 00:13:49,260 | either case. The high that candle is the monthly bearish breaker high and the low of that candle is the monthly bearish breaker low this candles low in this |
| 73 | 00:13:49,260 --> 00:14:00,210 | candles high makes the fair value gap in the form of a sippy sellside unbalanced bytes on an efficiency it means is down candle that creates the fear Vega very |
| 74 | 00:14:00,210 --> 00:14:11,340 | short way of saying it. The market creates a fear of a gap here in the form of a bias out of balance outside inefficiency. This candles high to this candles low |
| 75 | 00:14:11,880 --> 00:14:23,220 | the fear of a gap was formed with buyside delivery. In other words, it's an up close candle that makes the fair value gap. This is something future. This is |
| 76 | 00:14:23,220 --> 00:14:32,520 | something that's already happened. So over in the annotation section this is something that I would humbly submit now that obviously I've seen some of my |
| 77 | 00:14:32,520 --> 00:14:42,450 | students that are extremely detail oriented and they're absolutely stunning in terms of how they annotate their charts, how they record their observations, |
| 78 | 00:14:42,480 --> 00:14:52,440 | just just the overall neatness and well rounded presentation of recording what it is they see in the chart that's useful to them just a beautiful illustration |
| 79 | 00:14:52,890 --> 00:15:07,320 | and approach to doing it and many of them share by way of Twitter and While I do believe that this part of your journey should be kept private, you want to |
| 80 | 00:15:07,350 --> 00:15:18,780 | include over here, some of the personal things that you want to include for that particular timeframe on that market. This is also why I teach that you should |
| 81 | 00:15:18,780 --> 00:15:29,790 | only really be focusing on specializing on one market. Now, you might have support behind the very market that you're trading by using the dollar index, |
| 82 | 00:15:29,790 --> 00:15:40,770 | for instance, and that that serve you well, whether it be an index traitor, like I'm showing example here, or a forex trader, and or a commodity trader, because |
| 83 | 00:15:40,770 --> 00:15:49,500 | the dollar index is going to have a lot of impact on all three of those types of markets. But in your annotations, for instance, I'll just read this out here. |
| 84 | 00:15:52,260 --> 00:16:06,180 | The MQ monthly journal entry, the MQ monthly continuous contract has rallied strong from October 22. Lows right here. Why this rally from here, you can |
| 85 | 00:16:06,180 --> 00:16:14,880 | include that traded down into this bias, an unbalanced sale sign of inefficiency, which is a fair value gap and swept the sell side rate below that |
| 86 | 00:16:14,880 --> 00:16:25,980 | low. That's how much you can include. You can include all this in here, but for the sake of brevity, and also just to review, and also show you what might |
| 87 | 00:16:25,980 --> 00:16:38,610 | happen going into the future from the time of this recording. I'm only including what's salient right now. I was anticipating the down closed candle on September |
| 88 | 00:16:38,670 --> 00:16:53,100 | of 2021. To provide characteristics of a ICT bearish breaker. That's this candle I'm referring to there. It was long overdue for a down close monthly candle |
| 89 | 00:16:53,100 --> 00:17:03,030 | after five months of buyside delivery in price. That means all of this movement here. So it's reasonable to anticipate at the time of this recording. It's |
| 90 | 00:17:03,120 --> 00:17:17,220 | August 2023. So we've traded up five months being from this down close candle so you have 12345 And then in August because this is July here, August, it's |
| 91 | 00:17:17,220 --> 00:17:30,810 | reasonable to anticipate August creating a down close candle. It does not need to close, lower. But we can anticipate the delivery of price like this because |
| 92 | 00:17:30,810 --> 00:17:40,860 | we've had so many up close candles. And we traded up into a breaker and we fulfilled the redelivery to all this down close candles range between this |
| 93 | 00:17:40,860 --> 00:17:51,480 | candles low and as candles high. It's going lower right? While inside that shaded area. We expect price to deliver upside or by side delivery, not by side |
| 94 | 00:17:51,480 --> 00:18:03,090 | liquidity by side delivery. It means just movement higher to overlap this area over here when it painted lower. You want to see candles painted higher. So that |
| 95 | 00:18:03,090 --> 00:18:19,170 | gives us a repricing not necessarily rebalanced, yet, it has to leave this area on the lower timeframes to be rebalanced. So notice what I said here, I said |
| 96 | 00:18:19,170 --> 00:18:30,030 | that I was anticipating the down closed candle on September 2021 to provide characteristics of a ICT bearish breaker. Now this statement was true for me |
| 97 | 00:18:30,120 --> 00:18:39,900 | personally. But for you, that might not be the case. Referring to it, I can you may not even refer to that came at all. In your analysis, you may not even |
| 98 | 00:18:39,900 --> 00:18:49,590 | notice it or paid any mind to it. In your charts. When you're back testing and journaling. You're going to be doing this very thing here. You're going to be |
| 99 | 00:18:49,590 --> 00:18:56,970 | recording as if you did, you're going to use language like this, I was anticipating the down closed candle on September 2021. To provide |
| 100 | 00:18:56,970 --> 00:19:08,940 | characteristics of an icy bearish breaker with this as implying is you felt when it reached up into this area in here between these two heavy red levels, that |
| 101 | 00:19:08,940 --> 00:19:18,150 | there would be some measure of a drawl to it. And then we're inside between these two levels here, the breaker low and the breaker high. Where is their |
| 102 | 00:19:18,150 --> 00:19:27,840 | liquidity? Well, that would be right above these highs here, which are relatively equal. And you had the inefficiency in here. So is it required for |
| 103 | 00:19:27,840 --> 00:19:37,710 | price to come out to the breaker high, we don't want to see that. That's one of the rules about that pattern, or that very PD array. We don't want to see it |
| 104 | 00:19:37,710 --> 00:19:51,870 | trade to the high it can. But we don't want to see that. So in this range here we see the inefficiency. And we traded into the breaker, this down close candle |
| 105 | 00:19:52,920 --> 00:20:03,720 | and in your chart where you have spaces where you at least have to make spaces in your chart so you have to scale your time. aim axis and your price axis to |
| 106 | 00:20:03,720 --> 00:20:18,720 | allow for you can annotate. Now for me, this is enough to give you an example. But I want you to take away from this the language I'm using here, I am very |
| 107 | 00:20:18,720 --> 00:20:31,710 | pleased to see price open near the high of the present August 2023. Monthly candle, subsequent delivery of lower price. The MQ is showing respect of the |
| 108 | 00:20:31,710 --> 00:20:45,090 | January 2022, fair value gap Sibi, which is located inside the range of the ICD bearish breaker, meaning that I'm pleased that it's doing this very thing, this |
| 109 | 00:20:45,090 --> 00:20:57,420 | is a monthly candle for August the 2023. It opened, moved up just a little bit, it's barely very hard to see. But then it trades lower After trading into and |
| 110 | 00:20:57,420 --> 00:21:07,020 | closing in the month of July, this fair value gap Sibi. That's what this is saying here. And notice what I'm using, again, the terms that are very |
| 111 | 00:21:07,020 --> 00:21:20,370 | emotionally positive, they're not communicating confusion, they're not recording moments where you were frustrated, you're never recording anything like that in |
| 112 | 00:21:20,370 --> 00:21:29,250 | your journal, you're never doing that. Do not use your journal, to record scary thoughts. Don't record |
| 113 | 00:21:30,810 --> 00:21:42,120 | periods of confusion or feeling like you just don't know. You're cheerleading yourself. And you're annotating these charts as you do it. Now, for some of you |
| 114 | 00:21:42,120 --> 00:21:49,260 | that are male, you're going to have a problem with this right away. I know some of you are like this is a waste of time, especially if you're one of the macho |
| 115 | 00:21:49,260 --> 00:22:01,710 | type, I ain't got time to journal ICT, I got money to make, okay, that's fine. But the majority of you that want to do this correctly, will do these types of |
| 116 | 00:22:01,710 --> 00:22:14,610 | things. And your brain is extremely powerful, it is the fastest, it is the most powerful computer that will ever exist. Because it has a personality attached to |
| 117 | 00:22:14,610 --> 00:22:27,480 | it. A computer can only do what a computer is programmed to do. That's it, it can make calculations it can reason within Logic that it's supplied. But you you |
| 118 | 00:22:27,480 --> 00:22:41,340 | can create, you can imagine, you can regret, you can feel good. So you have an emotional stimuli that's associated with your previous learning experiences and |
| 119 | 00:22:41,340 --> 00:22:50,640 | your future learning experiences. So in your journal, you want to filter out every negative aspect. That's not to say that you can't observe things that you |
| 120 | 00:22:50,640 --> 00:23:05,850 | didn't do correctly, or that you felt that you didn't see coming. Always record it like you did. If you had something that you did incorrectly, okay, if you |
| 121 | 00:23:05,850 --> 00:23:12,210 | have a moment in price action, where you know, you were there that day, and you were literally looking at price, and you thought something was gonna happen a |
| 122 | 00:23:12,210 --> 00:23:22,680 | specific way. You want to record it in a way where it sounds like this. This is a wonderful opportunity for me to improve upon this area here because I thought |
| 123 | 00:23:22,890 --> 00:23:32,640 | price would do XYZ or whatever it would be that you're looking at that you thought, for instance, maybe you thought that in the morning session by side |
| 124 | 00:23:32,640 --> 00:23:41,400 | liquidity was going to be taken but it never ran for buy side and went the opposite direction. So in your journal, you could record something like, I'm |
| 125 | 00:23:41,730 --> 00:23:54,450 | grateful that I had the opportunity to learn why the sell side was attacked over the buy side today. See what I just did there. I disarmed that pain in |
| 126 | 00:23:54,450 --> 00:24:03,900 | frustration that you probably felt by watching Real Time price action, but didn't see it delivered like you wanted to. But then you go in and you annotate |
| 127 | 00:24:03,900 --> 00:24:11,820 | the chart. And I'm speaking hypothetically here as an example, because it's not being shown here on this chart. But you want to be able to record it in a way |
| 128 | 00:24:11,820 --> 00:24:23,910 | where it doesn't hurt you. It doesn't hurt you psychologically, it doesn't form a memory or a monument to a period of confusion. You don't ever want to do that. |
| 129 | 00:24:24,870 --> 00:24:33,000 | Because if you do those types of things, and that's what many of you do with social media, you'll complain and say this is hard. This is too complicated. I'm |
| 130 | 00:24:33,000 --> 00:24:42,360 | never going to do this. You know, I'm struggling, and I'm about to quit. Whenever you do that. You're doing the opposite the very extreme opposite of |
| 131 | 00:24:42,360 --> 00:24:54,360 | what it is that you should be doing. Your journal is your best cheerleading vehicle. And it's also a way for you to build the most powerful trading money |
| 132 | 00:24:54,360 --> 00:25:05,070 | making manual you'll ever have in your hands and you wrote it yourself. So buying books is not the answer. Buying courses is not the answer. Trying to |
| 133 | 00:25:05,070 --> 00:25:14,040 | trade and follow me tick by tick, real time is not the answer. This is the answer. This is the thing that you're supposed to be doing. This is the thing |
| 134 | 00:25:14,040 --> 00:25:25,680 | that most of you will not do long enough to be able to get good at reading price action, you have to study on price action. And you have to sweet talk yourself |
| 135 | 00:25:25,680 --> 00:25:39,420 | into believing that these things were identified ahead of time by you. And you record it as such. And here I say if n q finds its way lower, and below the ICT |
| 136 | 00:25:39,420 --> 00:25:51,870 | breaker low, there's a fair value gap Vissi formed on the June 2023 monthly candle. That's this candle right here. Now, over here in this area, you may |
| 137 | 00:25:51,870 --> 00:26:04,200 | include other things that you were identifying or saw something in here that you want to make sure you record and build up this scary area in your understanding |
| 138 | 00:26:04,920 --> 00:26:13,830 | you longer term bias, you know how long you should I expect the bias to stay in effect while you're being bullish. It's reasonable to anticipate it eating up |
| 139 | 00:26:13,830 --> 00:26:24,060 | into this bearish breaker. And if it does, how far can it go by sides here about these highs and then you had the inefficiency. And you saw July deliver that and |
| 140 | 00:26:24,060 --> 00:26:37,650 | the wick goes just pass that by a little bit. But that's okay. Because the wicks do the damage. The candlesticks tell you the story. That's the narrative. Now |
| 141 | 00:26:37,650 --> 00:26:48,300 | taking everything from that monthly chart, transposing it down to the weekly chart and it's very easy to do that, you just toggle down to the weekly chart in |
| 142 | 00:26:48,330 --> 00:26:56,550 | every annotation that you have, as long as each one of these annotations that you did on your monthly chart are shown on all intervals. So, the way you would |
| 143 | 00:26:56,550 --> 00:27:07,500 | do that is you would hover over top of with any annotation then right click your mouse and unclick interval or show intervals ball on trading view and that way |
| 144 | 00:27:07,500 --> 00:27:14,220 | when every time when you drop down to a lower timeframe or any other timeframe, the annotation you put on your higher timeframe monthly chart will show up on |
| 145 | 00:27:14,220 --> 00:27:27,540 | the lower timeframes all the way down to the smallest one. So, what I have here is those same breaker high break or low and fair value gap on a monthly so you |
| 146 | 00:27:27,540 --> 00:27:38,460 | want to annotate your higher timeframe PD arrays with what timeframe they are. Notice I have the monthly parish breaker high monthly fair value get SEBI |
| 147 | 00:27:38,910 --> 00:27:53,610 | monthly bearish breaker low. This is a premium wick consequent encouragement. That means this wick of this candle here. It's half of that wick, we treat wicks |
| 148 | 00:27:53,640 --> 00:28:05,670 | and tails on candlesticks, like gaps, okay, so every gap has a equilibrium price point. And it's not called mean threshold. It's not called equilibrium. It's |
| 149 | 00:28:05,670 --> 00:28:19,110 | called consequent encroachment. So whenever we have a gap with this boxes here, that would have a consequent encroachment as a midpoint, an order block which is |
| 150 | 00:28:19,110 --> 00:28:28,200 | like the breaker high and regular that was shown on the monthly chart, let me go back up this candle here midpoint of that because it's an order block midpoint |
| 151 | 00:28:28,200 --> 00:28:43,560 | is mean threshold middle or halfway point of a gap Vega the halfway point would be consequent encouragement. So now we're on a lower timeframe weekly chart. So |
| 152 | 00:28:43,560 --> 00:28:56,010 | now we can start seeing more detail this price action here on this very particular candle, we have a wick that wick projected out in time is a premium |
| 153 | 00:28:56,010 --> 00:29:05,940 | wick consequent encouragement. Now, when we drop down to the lower timeframes, which will be the daily and in subsequent lower timeframes, this would have to |
| 154 | 00:29:05,940 --> 00:29:23,430 | be annotated as what what timeframe is this? Weekly This Is a bullish order block propulsion block. Why is this a propulsion block because this down close |
| 155 | 00:29:23,430 --> 00:29:34,380 | candle is your order block and then you have a higher order block down close candle that does not pass through mean threshold not on a closing basis. So |
| 156 | 00:29:34,410 --> 00:29:46,290 | we're seeing it trade very close to that opening price but it's inside of the propulsion block which is the high of the wick down to the opening. The |
| 157 | 00:29:46,290 --> 00:29:59,970 | propulsion block has a midpoint or equilibrium price point, which would be what consequat encouragement or mean threshold mean threshold so we want to see that |
| 158 | 00:30:00,000 --> 00:30:08,460 | As price shows sensitivity there, that's what I'm having annotated. So I want to see what we do there. We also have a fair pay gap there. You can annotate that. |
| 159 | 00:30:08,520 --> 00:30:16,740 | I'm just mentioning here because I want to keep the chart cleaner. So because we have that gap, because we have an order block and a proportion block, we might |
| 160 | 00:30:16,740 --> 00:30:25,830 | have sensitivity there this week coming up. So does that mean it's going to go here and go higher? I don't know. Does it mean it goes to it? And through it? I |
| 161 | 00:30:25,830 --> 00:30:38,760 | don't know that. So we have to wait and see. How does it trade on Sunday into Monday. Now that fear a gap was formed on the monthly chart. So that's why it's |
| 162 | 00:30:38,760 --> 00:30:46,620 | annotated here as monthly fair value gap bottom balance also on an efficiency when we get to the lower timeframes, this will be annotated as a weekly bullish |
| 163 | 00:30:46,620 --> 00:30:59,370 | order block proportion block because it's framed in built on what timeframe, the weekly chart. So the annotations are the as such, the N q weekly journal entry, |
| 164 | 00:31:00,150 --> 00:31:08,880 | the N q continuous weekly chart, respected the premium with consequent encouragement on the weekly candle of July 17 2023. |
| 165 | 00:31:10,440 --> 00:31:20,100 | That's this candle here, that the consequent current or the midpoint of that wick, and we're seeing it respect it here. So this is last week's trading and |
| 166 | 00:31:20,100 --> 00:31:31,950 | open trade up into it, we wick through took out the previous weekly high, but the bodies are sustained below the consequent encroachment of that wick. And |
| 167 | 00:31:31,950 --> 00:31:44,100 | then price delivered below the previous week's low over this fear of a gap in trading into the propulsion block here, right there. Now it looks like on this |
| 168 | 00:31:44,100 --> 00:31:55,740 | chart, it looks like it's touching the opening price. But it doesn't yet. We were expecting to see and queue price drop into the bullish order block |
| 169 | 00:31:55,740 --> 00:32:08,910 | propulsion block on the weekly candle of July 3 2023. Right here, that's the propulsion block and we are expecting this very thing to happen. So what am I |
| 170 | 00:32:08,910 --> 00:32:21,600 | doing here, I'm teaching you how to record it as you saw it coming. And then you record here. I was not overly concerned with the initial rally higher in the |
| 171 | 00:32:21,600 --> 00:32:29,730 | first part of the week of price action. The bodies of the candles tell the narrative of price action. And again, that's entertaining this very principle |
| 172 | 00:32:29,730 --> 00:32:39,030 | here. It opened in the initial rally up that was not concerning. That was not going to be a thing that tricked us. That's not what tricked me. We're |
| 173 | 00:32:39,030 --> 00:32:52,020 | anticipating price to go up just the sucker in retail traders. The lesson form misinformed Street money and then delivery lower. So now we have these |
| 174 | 00:32:52,020 --> 00:32:59,700 | annotations here premium with consequent encouragement and bullish order block propulsion block when we dropped down to the next time frame, which would be |
| 175 | 00:32:59,700 --> 00:33:12,210 | what appear in left hand corner, what's below the weekly chart the daily, so we'll have to make sure these two PD arrays are labeled weekly. So this will be |
| 176 | 00:33:12,210 --> 00:33:21,810 | a weekly premium with consequent Grossman and weekly bullish order block propulsion block. All right, now we're down into the daily chart. Okay, so now |
| 177 | 00:33:21,810 --> 00:33:34,950 | you can see the weekly bullish order block propulsion block now has showing it as weekly and the weekly premium wick consequent Kurtzman, notice how much all |
| 178 | 00:33:34,950 --> 00:33:46,290 | these candles create a completely different perspective. This is why by doing this, you train your eye and you start to see how the different timeframes |
| 179 | 00:33:46,830 --> 00:34:00,570 | respect the higher timeframe PD arrays, and you also never get lost in the story in context of what price action is showing you across all the timeframes. So the |
| 180 | 00:34:00,570 --> 00:34:11,400 | price delivery continuum, which is moving from higher timeframe to lower for lower to higher moving throughout the pdra matrix. Every one of these |
| 181 | 00:34:11,400 --> 00:34:25,500 | annotations here did not appear on the weekly nor did they all appear on the monthly now on a daily chart. So the daily chart has its own specific PD arrays, |
| 182 | 00:34:25,860 --> 00:34:35,790 | but leaning on the logic and the context that will be derived from those PD arrays from the monthly chart and the weekly chart. Now we're on the daily |
| 183 | 00:34:35,790 --> 00:34:45,390 | chart. And again, it's the same symbol, NASDAQ number one exclamation which is the NASDAQ continuous contract. For those who have been wondering what this |
| 184 | 00:34:45,390 --> 00:34:57,630 | means. The continuous contract means that whenever the front month or the nearby contract is traded when it expires, this chart will use the data from the new |
| 185 | 00:34:57,660 --> 00:35:09,420 | next nearby contract is It will become the front month. So for instance, right now we're trading the September contract of NASDAQ. When NASDAQ September |
| 186 | 00:35:09,420 --> 00:35:22,560 | contract expires, this chart, this n cubed number one exclamation will start using the data from the December 2023 contract. So it's always using the front |
| 187 | 00:35:22,560 --> 00:35:39,840 | month or new nearby contract expiration that uses that data to make the individual candlesticks if you're trading with the actual futures contract, |
| 188 | 00:35:40,380 --> 00:35:48,870 | you're not trading with the MQ continuous contract, you're gonna be trading with the nearby contract. So whichever one has the most open interest in highest |
| 189 | 00:35:48,870 --> 00:35:58,020 | volume, being traded, most actively traded in other words, that's the one you're actually gonna be trading. And you want to do this very thing here with the |
| 190 | 00:35:58,020 --> 00:36:05,340 | actual contract. Now, you're probably asking, Well, why don't I do it with the September contract, because September's contract on TradingView is not going to |
| 191 | 00:36:05,340 --> 00:36:14,070 | give you the data that shows you the higher timeframe monthly. So I'm using the continuous contract here to show you that higher timeframe monthly fair value |
| 192 | 00:36:14,070 --> 00:36:25,110 | gap Sibi, which is the shaded area here. And then we have the daily chart showing you another PD array, which is this imbalance here from this candles low |
| 193 | 00:36:25,560 --> 00:36:34,650 | to that candles high. So all of this down close movement here. This sell side delivery, not sell side liquidity, sell side delivery, it means that |
| 194 | 00:36:34,650 --> 00:36:53,700 | candlesticks expanding lower this inefficiency is a daily Fairbury gap Sibi sell side imbalance by side inefficiency. It traded up into the high of that city on |
| 195 | 00:36:53,700 --> 00:37:07,350 | Monday, then Tuesday, we traded down got really close to the low which will be this candle high. And then we opened here on Wednesday traded higher created a |
| 196 | 00:37:07,350 --> 00:37:20,010 | volume imbalance gap lower extreme price delivery on the low end. So all the sell side delivery trades below. This low here where sell side liquidity would |
| 197 | 00:37:20,010 --> 00:37:32,370 | be and dug into this fair value gap, which is a fair pay gap busy bison imbalance selsun efficiency. This is formed on a daily chart. So the annotations |
| 198 | 00:37:32,370 --> 00:37:43,800 | have to keep referencing what timeframe these PD arrays are anchored on. That way when you go into lower timeframes, you're not losing sight of what levels |
| 199 | 00:37:43,830 --> 00:37:55,770 | are what everything will be in its proper place. And everything will have the proper context. So if you're using the higher timeframe charts to determine a |
| 200 | 00:37:55,770 --> 00:38:02,850 | narrative of bias, where price is likely to draw to, you're going to use all these PD arrays. And right now let me just ask you this, if you were just |
| 201 | 00:38:02,850 --> 00:38:10,680 | looking at this without me walking you through any more of it, it might be a little overwhelming, it might look a little complicated. But as we go through |
| 202 | 00:38:10,680 --> 00:38:21,060 | it, you're gonna see oh, now that makes sense. And when you do this in your own charts, and you do months of it, not one day a week, where you try to cram it |
| 203 | 00:38:21,060 --> 00:38:31,560 | all in one day. And that's not we should be doing this should be a daily meditation for you. Every single day is a day that you must journal, you |
| 204 | 00:38:31,560 --> 00:38:41,190 | actively do this every single day in whatever market is you want to specialize in. So this is why the folks that are trying to be Jack of all trades. And you |
| 205 | 00:38:41,220 --> 00:38:48,750 | you want to trade 28 markets and have 20 markets being followed all the time. If you don't have a model that you're consistent with, you're wasting your time, |
| 206 | 00:38:49,680 --> 00:38:57,150 | you're not doing things efficiently to do what it is you're trying to do, which is become very good at reading price, which will eventually by default, make you |
| 207 | 00:38:57,150 --> 00:39:08,070 | a better trader that you can't get there. If you jump over this part, I promise you, if you're armwrestling me and saying I don't want to do this part, I'm |
| 208 | 00:39:08,070 --> 00:39:16,410 | never I'm never gonna do it ICT, I'm never going to journal I'm never gonna do this kind of stuff. It's a waste of time, you will not be consistent, you might |
| 209 | 00:39:16,410 --> 00:39:24,720 | get once in a while lucky here and there. That you will be either a breakeven trader, or you'll eventually crash and burn. And you'll never tell anybody on |
| 210 | 00:39:24,720 --> 00:39:36,090 | social media that happened. But You'll pretend that you didn't. Don't waste your time. Do these things I'm telling you to do and I promise you the results, the |
| 211 | 00:39:36,090 --> 00:39:45,540 | understanding the logic behind the model that you're seeking, will literally leap off these charts and speak directly to you. Because the thing that you're |
| 212 | 00:39:45,540 --> 00:39:54,930 | going to gravitate to the most whatever pdra It is your going to see it and it's going to be the easiest one you see when you start doing this. I'm not saying |
| 213 | 00:39:54,960 --> 00:40:07,830 | only annotate the one that you want to use, for instance affair a gap or institutional Before entry drill, or could be anything. Don't force that. Always |
| 214 | 00:40:07,830 --> 00:40:19,050 | annotate everything after the fact. Use terminology in your commentary and your annotations. Like you saw it coming in over time by doing this every single |
| 215 | 00:40:19,050 --> 00:40:29,100 | trading day. And yes, it takes a lot of time. Yes, it's going to feel tedious. Yes, it's going to feel like this is counterintuitive. It's not productive. But |
| 216 | 00:40:29,100 --> 00:40:43,590 | it really, really is productive. You are hot wiring, your experience, you're literally going in there and supercharging and shortening your learning curve. |
| 217 | 00:40:44,670 --> 00:40:51,360 | It doesn't feel like it feels like you're doing everything opposite to what you should be doing. You shouldn't be trying to train the right side of the chart. |
| 218 | 00:40:51,900 --> 00:41:00,270 | But how can you do that? If you don't know what you're doing? If you don't know what you're looking for, how these things form? Where do they form? What do they |
| 219 | 00:41:00,270 --> 00:41:12,810 | look like across all timeframes, you cannot do it, you'll be wasting your time trying. So it's important to anticipate that you're going to have months of |
| 220 | 00:41:12,810 --> 00:41:21,240 | doing this before you probably get really comfortable with what it is you're trying to do. That doesn't mean you're trading consistently, it just means that |
| 221 | 00:41:21,240 --> 00:41:27,990 | you're probably going to at that time months from now, you're going to know what it is that you want to look for in price action, because you've seen it repeat |
| 222 | 00:41:27,990 --> 00:41:38,340 | so many times, it's obvious. Whichever PDA you like, you'll know don't take the ones that I'm talking about the most, it might be an obscure one, like the |
| 223 | 00:41:38,340 --> 00:41:47,550 | mitigation block. Okay, something that makes the most sense to you. And all of my students are different, they're all going to pick something that makes more |
| 224 | 00:41:47,550 --> 00:41:57,210 | sense to them. Then, many times that Nate first thought was going to be everybody wants to do order blocks. But then he discovered the fair Vega, then |
| 225 | 00:41:57,210 --> 00:42:10,980 | he discovered the model 2022. So now we have a silver bullet setup, which is time based. So all these things, okay, there are potential candidates for you to |
| 226 | 00:42:10,980 --> 00:42:22,830 | build a model around that is uniquely yours. But don't try to force it by doing this practice of annotating and logging what price action actually did, and then |
| 227 | 00:42:22,830 --> 00:42:34,410 | recording the annotations properly and organized. And then giving yourself annotations that were some positive, saying, Well done to yourself for seeing it |
| 228 | 00:42:34,410 --> 00:42:43,890 | coming beforehand, and it delivering what you thought it would. You didn't probably do that. But again, you're tricking your subconscious. And you're |
| 229 | 00:42:43,890 --> 00:42:54,090 | tricking yourself into believing by repetition, looking at these old charts, is these journal entries will be referred to later on at the end of the week. At |
| 230 | 00:42:54,090 --> 00:43:02,940 | the end of the month. Look at previous week and the week before that, you constantly go back and look at this over and over again. It's like watching a |
| 231 | 00:43:02,940 --> 00:43:11,520 | movie you saw many times before, you know what's going to be said you know what the actors are wearing, you know the outcome, but you're continuously watching |
| 232 | 00:43:11,520 --> 00:43:19,800 | it, because why you'd like that movie. I have dozens of them that I like watching. And I know the script, I know the words are gonna say I know the |
| 233 | 00:43:19,800 --> 00:43:27,240 | manners. And I didn't say it this the same way that they do sometimes. And sometimes I'm in the shower, and I'm repeating a movie scene because I'm looking |
| 234 | 00:43:27,240 --> 00:43:36,750 | forward to watching it again. Why? Because it means something to me, it holds a special place in my heart. That's what you're trying to do with price action, |
| 235 | 00:43:37,020 --> 00:43:46,560 | you're falling in love with reading price. And if you do not fall in love with this part of it or this aspect of what trading is, you cannot absolutely |
| 236 | 00:43:46,560 --> 00:43:57,870 | underscore cannot be consistently long term profitable. That's it. This is how you have a romance with price action. You do this very thing. You're writing |
| 237 | 00:43:57,870 --> 00:44:07,470 | love letters to your future self encouraging your future self. And you're saying these are all the beautiful things I love about price action, just like you want |
| 238 | 00:44:07,470 --> 00:44:15,690 | to be able to tell your significant other. You don't want to go to your significant other and say you know how you got some really ugly hammertoes okay, |
| 239 | 00:44:15,720 --> 00:44:24,030 | I don't know what's going on. You got some tow jams. We got to take care of that. You're never gonna do that not survive. So you want to do what you want to |
| 240 | 00:44:24,030 --> 00:44:30,480 | say, Honey, you look so nice today. That's a lovely perfume you're wearing. What did you do to your hair? It looks beautiful today. You What are you doing? |
| 241 | 00:44:30,510 --> 00:44:39,210 | You're focusing on all the positive because you know, you don't want to go in a dog house. You don't want to be separated from the the good aspects of being in |
| 242 | 00:44:39,210 --> 00:44:46,050 | that relationship with that person. Because you're going to say something that's negative. You don't want to do that in your journal because what you're doing is |
| 243 | 00:44:46,050 --> 00:44:57,330 | you're trying to cultivate the sweetest romance between you and price action. You want to have a close knit relationship with price. You want to be able to |
| 244 | 00:44:57,420 --> 00:45:05,340 | warm up the price real quick. See When it starts trading real time to Oh yeah, I know what you're doing honey, you do this all the time. Just like when you're |
| 245 | 00:45:05,340 --> 00:45:12,300 | with a long term relationship partner, you know what they're going to do, how they wake up how they act before they have their coffee, you know how they act |
| 246 | 00:45:12,300 --> 00:45:20,490 | before they go to bed, either a night person or a morning person, you know, their little personal little quirky things. This is how you learn what price |
| 247 | 00:45:20,490 --> 00:45:31,590 | does and its own unique personal, quirky things. And then that relationship in that language that love language between you and price action, then it develops |
| 248 | 00:45:31,590 --> 00:45:42,090 | into what a long term committed relationship which is positive, profitability, consistency, longevity, all those things, and you don't have drama, you don't |
| 249 | 00:45:42,090 --> 00:45:52,260 | want to invite drama into your relationship with price action. So you started as a love story, you sweet talk at the sweet talk yourself your future so all this |
| 250 | 00:45:52,260 --> 00:46:03,780 | is what you're doing by back testing, that is back testing. That's my way of conditioning you as a student to go in and fall in love with what price does |
| 251 | 00:46:03,930 --> 00:46:12,330 | because it does these things over and over and over again just like your spouse your significant other would know things that you do all the time they know you |
| 252 | 00:46:12,330 --> 00:46:21,930 | like a well read book, they know you like the back of their hand the same way you know them. So, by looking at the monthly chart and the weekly chart and |
| 253 | 00:46:21,930 --> 00:46:32,190 | having those respective PD arrays annotated on the daily chart, then we look at the daily chart and identify what that timeframe offers us. So we have a |
| 254 | 00:46:32,640 --> 00:46:45,150 | complete and comprehensive approach from the highest timeframes which is monthly weekly now daily and every specific PD array must be properly labeled otherwise |
| 255 | 00:46:45,360 --> 00:46:58,050 | you will lose sight of what it is you're looking at this range up here is that fair value yep city on the monthly chart that was below the monthly breaker high |
| 256 | 00:46:59,190 --> 00:47:11,340 | and between that and the monthly breaker low which is this level here. This daily fair value gap in the form of a busy which is an up close candle. This is |
| 257 | 00:47:11,340 --> 00:47:26,670 | only seen on the daily chart. And this is that monthly Fairbury yet by Sanibel sauce on inefficiency we have a SEBI here. So to daily fair value got Sydney the |
| 258 | 00:47:26,670 --> 00:47:42,180 | candle was down, down candles that make a fair value gap is a city up close candles that make a fair a gap is a busy. Okay. So this inefficiency here forms |
| 259 | 00:47:42,240 --> 00:47:56,760 | at what part of this monthly fair value gap city. So in other words between this range high in this range low from the monthly chart now. Where is this city |
| 260 | 00:47:56,760 --> 00:48:13,890 | forming? In the lower half of it? Did you notice that? High to low that pink range halfway points about right here. So the high of that city also is in close |
| 261 | 00:48:13,890 --> 00:48:25,440 | proximity to the consequent encroachment which is not labeled here of the high and low, you might want to include that in your chart. But this city stops right |
| 262 | 00:48:25,440 --> 00:48:34,710 | there. Because not only is it the high of this imbalance, but it's also consequent encroachment of the monthly fair value gap city. So now notice what |
| 263 | 00:48:34,710 --> 00:48:47,550 | we're doing, we're observing, we're appreciating and recording the logic behind nested PD arrays. There's a convergence, if you will, of PD arrays and levels |
| 264 | 00:48:47,550 --> 00:48:57,120 | that would otherwise go unnoticed by you or anyone else out there. And these are the types of things that I have done in the past years ago, when I would do |
| 265 | 00:48:57,120 --> 00:49:07,860 | recorded executions and people would say, you know, why is he trading they're like what's so significant about that area? It's things like this. And I can say |
| 266 | 00:49:07,860 --> 00:49:17,610 | it in passing, say hey look, it's it's a monthly fair value gap and check your charts for homework you want to look at the monthly chart as inefficiency around |
| 267 | 00:49:17,610 --> 00:49:26,100 | that price level. But see you don't want to do that. You just want to watch me do a new trick. You want to see me do some new teaching and not dig into the |
| 268 | 00:49:26,100 --> 00:49:32,580 | chart yourself and appreciate what it is I'm laying out there for you on a silver platter. But I'm not going to spell it out for you not because I don't |
| 269 | 00:49:32,580 --> 00:49:39,120 | want you to learn it because I want you to go into Detroit and do this very thing here. Which is what every one of my profitable students are doing and have |
| 270 | 00:49:39,120 --> 00:49:56,670 | done. You're not going to be the exception. Stop armwrestling it so we also have this area here, which is a what fair Vega but think now if this is an |
| 271 | 00:49:56,670 --> 00:50:08,370 | inefficiency, and it's a fair Vega what kinda fair value gap is this bias out of balance sells on inefficiency, just like this one is down here. But what does |
| 272 | 00:50:08,370 --> 00:50:19,290 | this become? If this area up here is creating some measure of a likely price delivery going lower? And then we see support behind that idea where price does |
| 273 | 00:50:19,290 --> 00:50:30,780 | this very thing here? Soon as this candle trades down below these lows, and below this candles high, which is the low of this boss on a mouse on efficiency, |
| 274 | 00:50:30,810 --> 00:50:35,790 | which is a fair value gap, this pass through this candle here makes this |
| 275 | 00:50:37,560 --> 00:50:50,550 | in this a potential what? Inversion Fairbury. What what timeframe does it form on the daily chart? See, we're up here daily. So your annotation here is the |
| 276 | 00:50:50,550 --> 00:51:02,070 | daily inversion fair value gap high, which is this candles low. In this candle is high, which is the daily inversion fer Vega low. In inversion fair value gap |
| 277 | 00:51:02,460 --> 00:51:14,640 | is narrative based. If we take away the context of wanting to go lower. Prior to this lower, this is just simply a fear of a gap by Sanibel sauce on efficiency. |
| 278 | 00:51:15,240 --> 00:51:25,710 | But as soon as we have price, deliver the sell side and then attack sell side liquidity and pierce the low end range of that bottom analysis on efficiency. |
| 279 | 00:51:26,250 --> 00:51:37,140 | This sets the tone if narrative is considered and we've already established that early on that we were looking for lower prices. So that means we can use the |
| 280 | 00:51:37,140 --> 00:51:50,520 | midpoint or the low or the lower quadrant. Notice there's three specific levels there. Now the zone, very specific price levels. Midpoint, what what's the |
| 281 | 00:51:50,520 --> 00:51:59,610 | midpoint of an inversion fair Vega, the same thing that we would call the middle of a fair value gap, the same thing we would call the middle of a wick or a tail |
| 282 | 00:52:00,090 --> 00:52:11,400 | consequent encouragement. So we see the daily inversion fair value gap consequent encroachment is right there. Notice we have this inefficiency here, |
| 283 | 00:52:12,270 --> 00:52:22,710 | which is what daily fair value gap city. So anyone else watching my videos, if they don't really go through the process of doing this or learning or take good |
| 284 | 00:52:22,710 --> 00:52:30,450 | notes. They're going to assume that the market's going to go all the way back up to here because they'll say this is a liquidity void in the market is going to |
| 285 | 00:52:30,450 --> 00:52:41,850 | want to have to go up there not when it's like this. Like what we have a higher timeframe monthly Vega, we went up and repriced to it we went up to it one more |
| 286 | 00:52:41,850 --> 00:52:51,300 | time halfway consequent encroachment. And we also rebalanced this area here because we went up into repricing it and then we left the range there. So now |
| 287 | 00:52:51,300 --> 00:53:04,200 | this is a balanced price range. And we have one two premium array supporting what lower prices so soon as we pierced through this low here this level here, |
| 288 | 00:53:04,740 --> 00:53:16,440 | not that very candle, this lower the inversion pair Vega we don't know it's an inversion fairway gap until price does this pass through then we can anticipate |
| 289 | 00:53:16,650 --> 00:53:28,230 | the market likely to reach up into the midpoint between this candles low in this candles high in that midpoint is daily inversion farewell got consequent |
| 290 | 00:53:28,230 --> 00:53:39,810 | encouragement. So midpoint between this level here and this level there. We trade up to here. Trade lower and close their next candle we open trade up one |
| 291 | 00:53:39,810 --> 00:53:50,520 | more time trading above the previous day's high trading up into consequent encroachment of the inversion fair value gap. And what is this candle here? This |
| 292 | 00:53:50,520 --> 00:54:04,020 | big beefy candle this is for the folks that like to say like order blocks are golfing candles. There's nothing to do with it. This candle here is the bearish |
| 293 | 00:54:04,020 --> 00:54:16,020 | order block. Notice this candle does not pierce or engulf this previous candle. Oops, here it goes that logic so it's the change in the state of delivery which |
| 294 | 00:54:16,020 --> 00:54:24,630 | is the opening price here as soon as that opening price is pierced the downside right there on that candle this becomes a bearish order block. Now because this |
| 295 | 00:54:24,630 --> 00:54:37,080 | is an order block, we can take that range from the low to the high halfway point of that is what consequent procurement no mean threshold. So we extend that to |
| 296 | 00:54:37,590 --> 00:54:48,450 | the future and it would be in this area here. But we have what what do we have here we have this inefficiency from this candles low this candles high. Would we |
| 297 | 00:54:48,450 --> 00:54:59,580 | reasonably expect if we have the inversion fair value get consequent encouragement which is half of this by Sanibel sauce on efficiency. The main |
| 298 | 00:54:59,580 --> 00:55:13,020 | point of that If we have that, and we have the opening of this bearish order block, and potential institutional order for entry drill, we're expecting lower |
| 299 | 00:55:13,020 --> 00:55:23,910 | prices. And we have an inversion fair Vega, can it go back up to the inversion fair value get hot? Yes, the chances of it doing that are slim. By far and |
| 300 | 00:55:23,910 --> 00:55:33,780 | large, many times you're gonna see the inversion fairway gaps. Given this type of movement where we've moved up five months, one direction, we hit a premium |
| 301 | 00:55:33,780 --> 00:55:41,310 | array, there's no reason really to go up to the higher the breaker. And because the breaker is essentially a pattern that you want to trade the low or mean |
| 302 | 00:55:41,310 --> 00:55:50,280 | threshold off, you don't want to see it trade the high and if it does, it becomes a little less likely doesn't mean it can't go there. It just means that |
| 303 | 00:55:50,280 --> 00:56:00,990 | I don't like to see that. And if it does that, and I'm in a trade, I will scale something off that remove the measure of risk that I'm holding, if I see it |
| 304 | 00:56:00,990 --> 00:56:11,850 | trading to the high of the breaker, because if it trades, the higher the breaker, it means that it's not as bearish as I want it to be. And you don't |
| 305 | 00:56:11,850 --> 00:56:22,200 | want to see it trade off here. If it's bearish. It shouldn't get all the way up there. Same aspect is being shown here. If we have this city, from this candles |
| 306 | 00:56:22,200 --> 00:56:32,340 | low and his candles high, and we had this one big candle trade down like that, do we really want to see a trade above the daily inversion? Fairbury got high? |
| 307 | 00:56:33,420 --> 00:56:42,450 | No, we don't want to see that. Just like we want to see it trade on the monthly bearish break or high. Because if it's bearish, we want to see premium arrays |
| 308 | 00:56:42,630 --> 00:56:56,160 | not be reached to. Let me say that, again. If we're bearish, if we see premium arrays in our PV array matrix in the the fractal that we're studying in price |
| 309 | 00:56:56,160 --> 00:57:08,010 | action, that means all the data that's being shown here, if we can clearly identify where specific liquidity resides, or where a premium PD array is in |
| 310 | 00:57:08,010 --> 00:57:19,320 | price, if we're really really bearish, we do not want to see premium arrays trading. So we want to see discount arrays draw price to it. And everything |
| 311 | 00:57:19,530 --> 00:57:30,930 | smashed through down close candles. Because what is that telling us? Order flows bearish? Did I have to show you a damn for that a depth of market that I have to |
| 312 | 00:57:30,930 --> 00:57:46,020 | show you a V whop? Did you have to see a point of control? How about a volume profile? You got to look at volume for that No. Everything is in the |
| 313 | 00:57:46,020 --> 00:57:57,390 | candlestick. Everything using the the witness you're looking at by time. So we also have the weekly premium, with consequent encouragement, which was being |
| 314 | 00:57:57,390 --> 00:58:06,180 | respected look at the bodies right there see that? That any of the bodies crossed over that loop, but we didn't have wicks go through it. And that also |
| 315 | 00:58:06,180 --> 00:58:15,150 | teaches you what by annotating your chart like this, and seeing how the lower timeframes go through. It's a little bit but when it does that, if you're |
| 316 | 00:58:15,150 --> 00:58:24,540 | bearish, you're going to start to condition yourself and say, Okay, this is acceptable. And this is why I say this is permissible in price action, where you |
| 317 | 00:58:24,540 --> 00:58:34,470 | might get scared out of it. Or you might put your stop loss just above that, thinking it's enough, it's not enough. But I'm not scared, or changing my |
| 318 | 00:58:34,470 --> 00:58:43,140 | opinion about where the markets gonna go. Because there might be a small little Mohawk little deviation outside of the levels I'm looking for. This is all |
| 319 | 00:58:43,170 --> 00:58:54,090 | normal coloring outside the lines, okay, this room is my babies, my child. So when I look at price action, in it colors Outside the Lines, I'm still going to |
| 320 | 00:58:54,090 --> 00:59:02,850 | take this chart and hang it on my refrigerator hanging on my desk, okay, it's, it's something my child has done. And I know that this is my child's |
| 321 | 00:59:02,850 --> 00:59:13,290 | fingerprints. So I don't worry about these things when I'm looking at it. And I'm not judgmental, what price did in these areas when it's normal to see that |
| 322 | 00:59:13,290 --> 00:59:22,320 | very thing. And you won't grow anxious when you're studying price. And it's behaving this way, because it's something that you expect, and it's likely to |
| 323 | 00:59:22,320 --> 00:59:30,420 | occur, where everyone else might get scared or stopped out, or they may even change their opinion about where they think the markets gonna go because the |
| 324 | 00:59:30,420 --> 00:59:42,630 | market creates these little wicks at the at the time watching it. This is a full blown bullish green candle at the highest higher that, you know, when it touches |
| 325 | 00:59:42,630 --> 00:59:54,720 | the candle low there real time I'm expecting it to this bump just above a little bit and then recede back into the range. When you start doing these types of |
| 326 | 00:59:54,870 --> 01:00:03,750 | annotations, it conditions you to anticipate that very thing so when you're watching Real Time price action or tape reading, you will have that in your |
| 327 | 01:00:03,750 --> 01:00:12,330 | mind, because you've seen many examples of it. And then when you start getting real comfortable with it, and it happens to do this, that very thing, it feels |
| 328 | 01:00:12,330 --> 01:00:21,300 | really good. It's a confidence builder. It's not an overconfidence creator, it's a confidence builder. And it builds this understanding about price action that |
| 329 | 01:00:21,300 --> 01:00:29,310 | you would never otherwise get. Unless you were actually doing these types of things and recording it and showing snapshots over time, not just audit it for |
| 330 | 01:00:29,310 --> 01:00:31,710 | two weeks, ICT, I'm doing back testing, and then you're not. |
| 331 | 01:00:33,030 --> 01:00:40,620 | And journaling is something you're going to do the rest of your career, you want to be able to empty and log everything. And the more you pour into this part of |
| 332 | 01:00:40,620 --> 01:00:51,900 | it, the better you're going to be. So we wouldn't want to see this area up here in this city be traded to we don't want to see that. Because above the daily |
| 333 | 01:00:51,900 --> 01:01:00,720 | inversion parabolic app high. We have this separation from this candles low in the high which is this candlestick low. That's the inversion fairway gap high. |
| 334 | 01:01:01,050 --> 01:01:08,190 | And right away, this is one of the first times you ever watched one of my videos, this isn't where you start. This is for people that have been with me |
| 335 | 01:01:08,190 --> 01:01:16,080 | for a while, and they just want to know how to journal. So before you even get to this part, you got to watch some videos. Okay, here's a lot of things you |
| 336 | 01:01:16,080 --> 01:01:25,140 | need to look at. And if this is the first time you watch the video, watch my 2022 mentorship 41 videos, okay, just watch that one. And it'll give you some |
| 337 | 01:01:25,140 --> 01:01:40,950 | context. When the market opens here on Wednesday, we open rally up and then crush the sell side liquidity. And we go below the low the daily bear inversion |
| 338 | 01:01:40,950 --> 01:01:55,260 | pair Vega that makes this low a real low of the inversion pair Vega. market trades the next day on Thursday opens rallies up touches the low of this candle |
| 339 | 01:01:55,260 --> 01:02:06,570 | here, which is what that your bearish order block, it can trade to that level and up to the opening price. Can it just stop and dead in its tracks? Yeah. But |
| 340 | 01:02:06,570 --> 01:02:16,980 | what do we allow for coloring outside the lines? So the opening price extended for what are we seeing right here? The same element of price delivery that's |
| 341 | 01:02:16,980 --> 01:02:28,860 | going on right there. This is a mohawk This is a mohawk it's absolutely permissible. Why? Because the market dynamics and the underpinnings of the |
| 342 | 01:02:28,860 --> 01:02:41,310 | marketplace is it's wanting to go lower. So it's willing to go lower, likely to go lower. Anytime it goes to a premium array that does touch, it does deliver to |
| 343 | 01:02:41,730 --> 01:02:51,960 | anticipate a little bit of coloring outside the lines and not freak out thinking it's going to give way which is the reason why I have a row of three PV arrays. |
| 344 | 01:02:52,740 --> 01:03:02,760 | One the first one, it can do this and then that's all there is it can do this and then trade into the second PV array that would be viewing as a defense. But |
| 345 | 01:03:02,760 --> 01:03:11,970 | if I have three PD arrays of I'm bearish if it trades through three PD arrays, I'm probably wrong. And if I haven't been stopped out, I'm going to take the |
| 346 | 01:03:11,970 --> 01:03:24,690 | trade off and remove myself from risk many times and you want me recently trade a Live account live trade in the MQ or NASDAQ real futures contract not a demo. |
| 347 | 01:03:24,930 --> 01:03:37,380 | You can see that over there on my Twitter account I was in a trade and I had one PD array of the three breached and it was approaching the second one and my |
| 348 | 01:03:37,380 --> 01:03:46,140 | third one was so close and right above my second pdra that if it went to my second one I was going to collapse the trade entirely and remove myself from |
| 349 | 01:03:46,140 --> 01:03:57,270 | risk so it's a matter of knowing all these things that you just can't get from an ICT video one time if there's no way to compress and put all this bandwidth |
| 350 | 01:03:57,660 --> 01:04:07,800 | into one single in dividual presentation not not in had the precision that you see me sharing and what my students are able to utilize on their trading. So |
| 351 | 01:04:07,800 --> 01:04:19,800 | this area up here becomes what between the daily inverse pair a gap high which is this candle as well to this candles low here that makes this one a breakaway |
| 352 | 01:04:19,800 --> 01:04:33,000 | gap. Whoo. It's not annotated, right it's for you to go in and dig into it. So we see a trade up into the bearish order block opening price and trades about |
| 353 | 01:04:33,000 --> 01:04:44,610 | this candle is high right there on Friday, which is a institutional order flow entry drill. What is that? It is a entry taken that will be inside of a |
| 354 | 01:04:44,610 --> 01:04:56,400 | imbalance like a fair value gap. What is this is a fair agar shaded? It's a daily for Vega. What kind SEBI that means it's a down candle that delivers the |
| 355 | 01:04:56,400 --> 01:05:11,460 | fair Vega just the opposite of what a busy is. Okay? Bessie is a ferrite yet that has an up close candle. City we remember easy is city is sellside delivery |
| 356 | 01:05:11,730 --> 01:05:28,320 | sell off. Busy buyside delivery by up. Okay as the way you can remember it. We don't want to see this area traded too, because why we have this high here that |
| 357 | 01:05:28,320 --> 01:05:37,530 | you can trade to and create a turtle soup trade up above it in a rejected color, which is what it did. But how far can it go above that ICT. The opening price |
| 358 | 01:05:37,530 --> 01:05:45,120 | here was your bearish order block that you're changing the state delivery rate there. And you can go up to that area there and go through it just a little bit, |
| 359 | 01:05:45,750 --> 01:05:56,610 | which is permissible price action, coloring outside the lines. And then we see delivery aggressive throughout the day and going lower. Taking out Thursday's |
| 360 | 01:05:56,610 --> 01:06:12,030 | low, digging deeper into this box out of balance and efficiency right there. And it's a daily based pdra The next one is the weekly bullish order block |
| 361 | 01:06:12,030 --> 01:06:20,940 | propulsion block. You can see now that we're on a daily chart, it didn't quite get there yet. That would be my next assumption for you if it goes lower and and |
| 362 | 01:06:20,940 --> 01:06:32,400 | obviously the entire closure and delivery back to this candles high. Doesn't need to do that we've done enough trading into this pie Sanibel sauce on an |
| 363 | 01:06:32,400 --> 01:06:41,250 | efficiency. The close here is real close to consequent encouragement, which is not annotated here, but I want you to annotate that on your charts and look at |
| 364 | 01:06:41,340 --> 01:06:50,190 | the lower timeframes on the Thursday's price action and Friday of last week. Now with all that said, the annotations I have over here is that the en que |
| 365 | 01:06:50,190 --> 01:07:01,260 | continuous daily contract delivered the lower prices I expected from the monthly fair value gap city the weekly profile. Now when I say profile, I do not use |
| 366 | 01:07:01,470 --> 01:07:14,370 | market profile. I do not use volume turned sideways plotted on my charts. I don't do that. Okay. I don't use depth of market. I don't use V whap. I don't |
| 367 | 01:07:14,370 --> 01:07:21,960 | use any kind of stuff. To me they're gimmicks. If you believe in them, that's your religion. I'm gonna knock you for your religion, but it has nothing to do |
| 368 | 01:07:21,960 --> 01:07:32,790 | with why price goes up or down. Weekly profiles to me are like templates. What is the roadmap that price is likely to follow? This weekly profile was an |
| 369 | 01:07:32,820 --> 01:07:42,270 | obvious Monday high of the week. Bearish profile that formed immediately after the daily fair value gap. SEBI was read delivered to on the Monday price action. |
| 370 | 01:07:42,540 --> 01:07:51,900 | That means here's Monday's price action here. We opened traded down, rallied up to the high which is the low of this candle. This is that city, the fair value |
| 371 | 01:07:51,900 --> 01:08:03,990 | of city that goes up here delivers to on Monday and stop trading right there. Then on Tuesday, we open trade up a little bit and then slam lower the weekly |
| 372 | 01:08:03,990 --> 01:08:15,270 | profile was an obvious Monday higher the week bearish profile that formed immediately back to the daily fair value gap. SEBI was redelivered to on the |
| 373 | 01:08:15,270 --> 01:08:25,200 | Monday price action. See what language I'm using there. That weekly profile was an obvious Monday high of the week, and I knew the likelihood of it forming on |
| 374 | 01:08:25,200 --> 01:08:37,470 | Monday is high. But you may not have been in your annotations you want to record it like you were anticipating. Going further Wednesday proved my bearish bias on |
| 375 | 01:08:37,470 --> 01:08:49,290 | the week was absolutely correct by creating a lower gap opening. That's this year. We opened here traded up and gapped from the previous day. We gapped in |
| 376 | 01:08:49,410 --> 01:09:00,780 | large range candle lower. This led to an amazing large range down closed day for into the daily range on the Wednesday extended past the inversion fair value got |
| 377 | 01:09:00,780 --> 01:09:10,020 | low which telegraphed the high probability of repricing to the inversion fair value got consequent encroachment, before repricing lower on Fridays price |
| 378 | 01:09:10,020 --> 01:09:20,520 | action that saying this candle went below. This candle is high, which is this inefficiency. So this inefficiency was a fair value gap. We went through it here |
| 379 | 01:09:20,550 --> 01:09:28,650 | that makes this potentially a inversion fair Vega meaning that has a lot of probability that's going to go up to the midpoint of it. Why shouldn't it go |
| 380 | 01:09:28,650 --> 01:09:40,920 | that high? I just spent time talking about this area here. We want to see that stay open as a fair value gap. No as a breakaway gap. And in Friday, we see it |
| 381 | 01:09:40,920 --> 01:09:52,200 | open trades up in here and then slammed back down. Friday was an easy short selling day with the bearish institutional order flow entry drill and bearish |
| 382 | 01:09:52,200 --> 01:10:00,780 | order block inside of the inversion fair value gap and using the inversion fair value gap consequent encroachment as the ideal premium to do Ready to expect the |
| 383 | 01:10:00,780 --> 01:10:15,300 | high of the day to form on now this is again recording it on the context of disrespecting the fact that it's Non Farm Payroll Friday somewhere in here you |
| 384 | 01:10:15,300 --> 01:10:23,040 | want to record that this was Non Farm Payroll Friday that you wouldn't be trading that day necessarily as a new student, but you can still see and |
| 385 | 01:10:23,040 --> 01:10:32,820 | recreate appreciate the price action and delivery of that occurring. Moving on to the NASDAQ four hour |
| 386 | 01:10:34,649 --> 01:10:44,039 | you can see against all the annotations that were on the monthly the weekly and now the daily see the daily fair value gap city daily inversion here I got high |
| 387 | 01:10:44,069 --> 01:10:52,919 | daily inversion fair value gap consequent encouragement and daily inversion fairway get low daily institutional order flow into drill daily bearish order |
| 388 | 01:10:52,919 --> 01:11:04,349 | block daily fair value gap city and now we have elements inside of the four hour chart like we see here before our bearish order block over here changes day |
| 389 | 01:11:04,349 --> 01:11:14,219 | deliveries their market opens on this four hour chart trades up was it doing its trading just above that candlesticks opening price this is permissible price |
| 390 | 01:11:14,219 --> 01:11:26,759 | action this is a mohawk okay? It's just a little bit outside the lines it's absolutely permissible the market trades they're lower opens here and moves |
| 391 | 01:11:26,759 --> 01:11:39,119 | lower again this area in here is indicating that inside of this daily fair value gap Sydney there's a little bit more detail as to why we would not reasonably |
| 392 | 01:11:39,119 --> 01:11:53,489 | expect the daily chart to see price action go above that daily inversion fair value gap high why look closer from this candlesticks low to this candlesticks |
| 393 | 01:11:53,489 --> 01:12:08,279 | Hi, that is your daily very good sebi. This is the daily inversion fair value gap high, the midpoint of that inversion pair where you get what's called squat |
| 394 | 01:12:08,279 --> 01:12:17,399 | encroachment. And the low the daily inversion pay right? Yep, low. So here's consequent encouragement. Why did we not expect it to trade up in this area here |
| 395 | 01:12:17,399 --> 01:12:26,969 | on the daily it was showing one single pass. But on a four hour chart, you can see it went down. And the next candle we opened and went back up there again and |
| 396 | 01:12:26,969 --> 01:12:44,909 | then down. Down delivery in here as well. So what is happening here went lower, lower, lower back up lower. So this is what bounced. So this is a bounce price |
| 397 | 01:12:44,909 --> 01:12:56,639 | range. So what do we have, from the daily inversion fair value gap hi to the daily inversion, fair value gap consequent encouragement, we have a balanced |
| 398 | 01:12:56,639 --> 01:13:14,219 | price range. nailing the bearish order block opening price, coupling it with the confluence of the daily inversion fair value got consequent encouragement of |
| 399 | 01:13:14,219 --> 01:13:25,289 | that gap on the daily chart that we saw trade through it here. And then we expect the midpoint of that to act as what the high on Friday. It's not likely |
| 400 | 01:13:25,289 --> 01:13:34,889 | to go all the way through all this. Just to get back up into a little area here. Let me go back to the chart. Think about this little area right here. Okay, now |
| 401 | 01:13:34,889 --> 01:13:43,619 | I'm going to show you that on a daily chart. That's this little area right there. Go on your own charts. And you'll see what I'm talking about. This little |
| 402 | 01:13:43,619 --> 01:13:54,059 | area here is not likely to see all that trade back up to this is going to stay open. Why? Because on the four hour chart, this is all balanced back and forth |
| 403 | 01:13:54,059 --> 01:14:03,599 | price action. So there's no there's no inefficiency, there's no liquidity that's necessary to trade to. So when we trade down through the daily inversion for |
| 404 | 01:14:03,599 --> 01:14:11,789 | Vega low here, our attention goes through the daily inversion pair right you got consequent encouragement in the likelihood of that becoming or just a little bit |
| 405 | 01:14:11,789 --> 01:14:24,179 | above it, like we see here creating the Friday high and we trade up small little Mohawk above the bearish order block opening price which is a state changes day |
| 406 | 01:14:24,179 --> 01:14:33,239 | delivery. Just a little bit above the daily inversion Perrey got consequent Grossman here and then we see what nonfarm payroll rip through it in an attack |
| 407 | 01:14:33,239 --> 01:14:44,489 | that low here they're digging into that daily fear Vega boss Annabelle Solsona efficiency. Now notice in here also we have this down move here in the next |
| 408 | 01:14:44,489 --> 01:14:56,129 | candle we open and when the candle opened here, this wick hadn't formed yet. So between this candlesticks low and where we opened this candle, it was just one |
| 409 | 01:14:56,129 --> 01:15:09,749 | single pass down, which would be looking much like a what Fair a gap city. But this candle, does what immediately trades up, hits the wall and goes just a |
| 410 | 01:15:09,749 --> 01:15:21,089 | little bit past that, within that it's permissible price action and trades lower. That is my immediate rebalance. When it does that, whenever it does that, |
| 411 | 01:15:21,089 --> 01:15:28,739 | and you have a bias that's bullish or bearish in this case, it immediately rebounds here. That is one of the strongest algorithmic signatures you're going |
| 412 | 01:15:28,739 --> 01:15:37,739 | to ever see in price action. I'll have much more talk about that in my books, but for here, and this re mining you that I've already mentioned it here on my |
| 413 | 01:15:37,919 --> 01:15:46,439 | YouTube channel, my long term students know about this intimately. But this immediate rebalance is one of those things that tells you that this market is |
| 414 | 01:15:46,439 --> 01:15:55,979 | going to be extremely bearish and it's going to move fast, and then we see it run off. So we have a four hour PV array in the form of a immediate rebalance. |
| 415 | 01:15:56,669 --> 01:16:06,119 | And then we have a four hour bearish order block. Apart from that, nothing else on the four hour chart is anything of importance to me. The annotations here |
| 416 | 01:16:06,179 --> 01:16:16,829 | show you that the MQ for our journal entry. The MQ continuous for our contract shows how nicely the weekly premium wick consequent encouragement kept price |
| 417 | 01:16:16,859 --> 01:16:29,699 | from rallying higher this week. That's this level here. Okay. Tuesday bearish order block and gap opening lower was the start of the descent and subsequent |
| 418 | 01:16:29,699 --> 01:16:39,389 | sell program. That's this gap here. And Bear shorter blah. So it's hitting that and in sells off aggressively as it enters a sell program. Daily fair value gap |
| 419 | 01:16:39,389 --> 01:16:48,779 | Sibi can be seen as well balanced. In the gray area, it's this area right in here, all of this is well balanced, because it's back and forth price action, |
| 420 | 01:16:48,779 --> 01:16:58,889 | it's not just one candle, it's back and forth, up and down, up and down. Which reinforced the probabilities of the daily inversion fair value gap consequent |
| 421 | 01:16:58,889 --> 01:17:06,629 | parchment being Friday's high of the day. And we see that actually occurring here. So it's going to have a real hard time getting through all this back and |
| 422 | 01:17:06,629 --> 01:17:14,519 | forth delivery. When on a daily chart, it looks like it's inefficient up here when it's not. So that's the price delivery continuing on referring to you have |
| 423 | 01:17:14,519 --> 01:17:23,789 | to know what your higher timeframes are showing you. And then inside of those are timeframes you into the details, because as I'm showing you here, the lower |
| 424 | 01:17:23,789 --> 01:17:32,369 | timeframes are going to show you a much more refined rendition of price delivery, that is not always easily ascertained by looking at the higher |
| 425 | 01:17:32,369 --> 01:17:43,409 | timeframe. The bias in the long term drawn liquidity, that's the importance of those higher timeframes. But the importance of the lower timeframe is refining |
| 426 | 01:17:43,439 --> 01:17:54,059 | precision. It's not noise. Okay, and finally, moving down into the hourly chart here is the last timeframe we're going to look at in this presentation. Because |
| 427 | 01:17:54,509 --> 01:18:06,449 | obviously, you can see it's, you know, it's very easy for me to go on and on and on and make this very challenging for duration purposes. Presentation. I know |
| 428 | 01:18:06,449 --> 01:18:15,659 | some of you might, well rounded students like the really, really long lectures. But I want to keep it as short and as concise as possible, but still hitting the |
| 429 | 01:18:15,659 --> 01:18:22,529 | most salient points because I want all of you to be dealing these types of things. If you don't do it, you're not going to learn how to do it well. So |
| 430 | 01:18:22,529 --> 01:18:29,519 | we're looking at the 60 minute chart or hourly chart, and we have all of the reference points. Now obviously, this looks like an entirely different market |
| 431 | 01:18:29,519 --> 01:18:39,329 | now doesn't it? From the monthly chart, the weekly chart, the daily chart doesn't even resemble the same market at all. But yet it is the same market. So |
| 432 | 01:18:39,329 --> 01:18:51,839 | we're using that price delivery continuum working from the higher timeframe down looking at how each individual pdra respects and or is negated. In here we see |
| 433 | 01:18:51,989 --> 01:19:07,319 | that monthly fair value gap city is that shaded area here. The monthly breaker high is outside the range of this timeframe. The monthly breaker low is outside |
| 434 | 01:19:07,319 --> 01:19:17,339 | the timeframe of this hourly chart, okay, so they're they're there. If we were to scrub down and squeeze or condensed this chart vertically, it would be up |
| 435 | 01:19:17,339 --> 01:19:28,559 | here higher and the low of the breaker would be lower than this. So for the purposes of showing the one hour chart timeframe, the respective PD rays and |
| 436 | 01:19:28,589 --> 01:19:36,719 | what was salient for this timeframe. I've zoomed in just to show you this but you can see this is the daily fair value got my son unbalance cellphone and |
| 437 | 01:19:36,719 --> 01:19:47,369 | efficiency and the monthly fair value get SEBI so we know the two premium and premium and discount levels. Okay. And inside that daily fair value gap city you |
| 438 | 01:19:47,369 --> 01:19:56,489 | can see how it's important that you label your PD arrays. You can't just throw a box or a rectangle in there and assume that you're gonna remember what it is and |
| 439 | 01:19:56,519 --> 01:20:08,549 | how to use it. So everything has to be organized and Everything has to have its place in all the timeframes that you utilize the weekly premium with consequent |
| 440 | 01:20:08,549 --> 01:20:20,459 | encouragement, the four hour bearish order block. Now we have this fear of a gap here. Whereas annotation for that it's coupled with the for our immediate |
| 441 | 01:20:20,459 --> 01:20:28,289 | rebounds, and 60 minute premium fair value gap city. That's this one right here. What's the candlesticks bodies showing you, |
| 442 | 01:20:29,460 --> 01:20:40,140 | consequent encroachment here for this gap? But what are the wicks doing coloring outside the lines? Just trading just a little bit outside? Which is completely |
| 443 | 01:20:40,140 --> 01:20:53,310 | reasonable. But what is it touching the previous daily fair value gap city that's not random. So I have in my notes, when I'm working with price action, |
| 444 | 01:20:53,580 --> 01:21:04,230 | when I'm trading, I have all these levels here, just as a list, just like you see price from 15 840. And then below that you see 15 800. And then below that |
| 445 | 01:21:04,230 --> 01:21:14,850 | 15, six 760, I have every respective PD array that I'm showing you here, just a number format, and it's annotation label just on a piece of paper, that's all it |
| 446 | 01:21:14,850 --> 01:21:28,560 | is. So I don't need a chart. Like I don't I don't need a chart to trade. I just need a piece of paper and know what time it is. And I can trade off of that. So |
| 447 | 01:21:29,640 --> 01:21:43,500 | this 60 minute fair a gap is a convergence with that four hour immediate rebalance. What does that mean? This movement right here is this. Let me go back |
| 448 | 01:21:43,500 --> 01:21:52,770 | up to the four hour chart so that way, you know what I'm looking at and what you're being shown. This candle here opening rallying up right there, this |
| 449 | 01:21:52,770 --> 01:22:05,190 | candle right there that four hour candle inside that four hour candle is this? Right here 1234 candles? Because for single 60 minute candles is that four hour |
| 450 | 01:22:05,190 --> 01:22:16,380 | chart. That's that market rallying back up creating a for our immediate rebounds. Then what does it do? It creates this? How could you use that? Well, |
| 451 | 01:22:16,380 --> 01:22:25,260 | if you're looking at an hourly chart, soon as it does this complete run up in the body closes down in here. If we open here in rally and touch the top of that |
| 452 | 01:22:25,260 --> 01:22:35,850 | Faraday gap, or here's the really fun part. If we extend past that Faraday got right in here, right in there soon as we trade above that. I think they're short |
| 453 | 01:22:35,850 --> 01:22:45,750 | there. You can go short there. Oh, it's delicious, isn't it? We're just starting to be worried about that swing high rate there. Why? Because this is a fair |
| 454 | 01:22:45,750 --> 01:22:55,590 | Vega. You can't use this one. You can't use the stock rate about that. Because it's the low of that previous daily fair value gap city, they can touch that |
| 455 | 01:22:55,590 --> 01:23:05,700 | that's that's reasonable. But this high here, it shouldn't go there. If it's bearish, it shouldn't go there. Why? Because this should act as a breakaway gap. |
| 456 | 01:23:07,080 --> 01:23:20,640 | Oh, that's delicious. sells off. And now we go back into this balanced price range, you can see again, all this back and forth delivery that isn't readily |
| 457 | 01:23:20,820 --> 01:23:30,540 | available in terms of looking at on a daily chart. But now look even closer, if we take this candlesticks low, which is the high of this daily fair value gap |
| 458 | 01:23:30,540 --> 01:23:41,880 | city. So this shaded pink area here, that this candles low to this candle is high. That's the range, okay, that creates that daily fair value gap civvie. If |
| 459 | 01:23:41,880 --> 01:23:50,580 | we drop a fib, when that candles low, and that candles high, and you add in the point seven, five, or the point two, five, whichever direction you're pulling |
| 460 | 01:23:50,580 --> 01:24:01,080 | the FIB from the lower quadrant of that daily fair value, gap city, that's this shaded area here. Notice what perhaps also on Friday, look at the bodies, it's |
| 461 | 01:24:01,080 --> 01:24:14,100 | respecting that lower quadrant. trades up in there. Here's a mohawk right there. Institutional referring to drill, bang, sell short, sell side, relative equal |
| 462 | 01:24:14,100 --> 01:24:28,050 | lows sell side. Hello. So I want you to know that you're doing these types of things. It's imperative that you are consistent by doing it. And by annotating |
| 463 | 01:24:28,050 --> 01:24:36,630 | your charts and pointing out what's obvious to you after the fact. It will help reassure yourself going forward looking at that hard right edge because you'll |
| 464 | 01:24:36,630 --> 01:24:47,790 | remember things by associating with them. Previous memories that you've created by journaling. You're condensing and compressing time in a manner with |
| 465 | 01:24:47,790 --> 01:24:55,350 | experience that didn't technically happen but you're recording in such a way that it tricks your brain into thinking that you did see it coming. The |
| 466 | 01:24:55,350 --> 01:25:02,730 | annotation for the 60 minute chart here is the MQ continuous 60 minute contract presented a really Easy Wednesday, two o'clock in the morning fair value gap |
| 467 | 01:25:02,730 --> 01:25:12,300 | city. That's this candle right there. When the four hour posted, its immediate rebounds. That's this movement here. And you can be seen respecting the lower |
| 468 | 01:25:12,300 --> 01:25:21,750 | quadrant of the daily fair value gap city on Friday at noon, that's here. That's this level here. It's the lower quadrant of this shaded area, half of it's here, |
| 469 | 01:25:22,440 --> 01:25:30,390 | and an upper quadrant would be here. Interesting enough that it touches that. And in this one here, I ain't making a big deal about that, because the |
| 470 | 01:25:30,420 --> 01:25:40,950 | efficiency wasn't cream until that movement. But look, that right there. We'll talk about that in my book. As the bodies of the candles tell the narrative of |
| 471 | 01:25:40,950 --> 01:25:51,990 | lower prices into the clothes, and we have that there. So non farm payrolls takes out the lows here, after taking by side, then sell side. That's what Non |
| 472 | 01:25:51,990 --> 01:25:58,410 | Farm Payroll does, it runs both sides of the marketplace. And I've taught that many times and it delivered again like gangbusters. |
| 473 | 01:26:03,720 --> 01:26:10,740 | Hopefully you found this one insightful, I hope you learn something about how you can journal and the benefits of doing so and how it builds an understanding |
| 474 | 01:26:10,740 --> 01:26:18,030 | about price actions you can't get by watching videos or reading books or listening to anybody just talk about price, even watching them trade or copying |
| 475 | 01:26:18,030 --> 01:26:26,160 | them. You'll never get this type of insight unless you go into your own charts and annotate them and do it as a daily meditation. And so I'll talk to you next |
| 476 | 01:26:26,160 --> 01:26:27,780 | time. Be safe |