ICT YT - 2023-11-01 - ICT Mentorship 2023 - Market Maker Models
Last modified by Drunk Monkey on 2023-11-04 09:36
Outline
00:18 - Market maker models and understanding PDE arrays.
- ICT emphasizes the importance of understanding PDE arrays for market making, as they are the foundation of a market maker's model.
- ICT encourages students to log and annotate market maker models they encounter, even if they don't fully understand them, to condition their brains to recognize them as positive experiences.
03:02 - Market maker models and price action analysis.
- ICT explains his Market Maker models, which involve fragmenting price swings and trading based on buy and sell curves.
- ICT uses swing trading to take advantage of institutional price swings, with a focus on buy and sell sides of the curve.
- The speaker discusses the concept of relative equal highs and lows in price action, and how they can be used to anticipate a market run.
- The speaker emphasizes the importance of understanding the market's narrative and gravitation to it for successful trading.
09:09 - Price action and liquidity in the market.
- ICT explains the concept of "by side delivery" in trading, where price movements offer liquidity above relative highs.
- ICT emphasizes the importance of understanding this concept to trade successfully, regardless of market or asset.
- ICT: Price moving higher on buy side delivery, then lower on sell side delivery to trap traders long and write it back down.
- Smart money goes short during sell side delivery, targeting stop losses of individuals who were long and kept their stop loss below the rally high.
14:16 - Market inefficiencies and price analysis.
- ICT identifies fair value gaps by looking for specific price levels where the previous candle's low is stopped out and the next candle opens higher, only to move lower.
- In this case, there is a fair value gap at the low of the middle candle, which the algorithm will reprice to by going back up and offering a patch filling in the gap.
- The speaker discusses market maker models and the importance of understanding supporting studies to decipher price movements.
- The speaker highlights the presence of up close candles, which create inefficiencies and can lead to price reversals.
19:41 - Market structure and price movement.
- ICT analyzes the market structure and identifies an imbalance, leading to a retracement and potential price reach above relative equal highs.
- ICT highlights a specific low on a lower timeframe chart, indicating a potential reprice lower and rejection block, with a possible retracement back below the low.
22:43 - Market structure and potential price movements.
- ICT highlights a potential balanced price range on the five-minute chart, with both buy and sell sides delivering overlapping efficiency.
- The speaker zooms in on a specific area within the price range, showing a high candle and a low candle that overlap, indicating a balanced price range.
- Analyzing candlestick patterns to identify potential price movements.
27:41 - Market consolidation and trading strategies.
- ICT identifies a repeating level in the consolidation, looking for a high or low that frames the area clearly.
- ICT emphasizes the importance of identifying consolidations and levels that constantly repeat, as this is the basis of swing trading.
- ICT analyzes market inefficiencies and attacks them for trading opportunities, rejecting retail theories like Support Resistance and harmonic patterns.
- ICT identifies the original consolidation and waits for it to be broken before entering a trade, using the resulting candle as an entry point.
32:20 - Technical analysis and trading strategies.
- ICT: Market rallies into 60-minute fair value gap, then drops back down, indicating potential sellside liquidity.
- ICT: Inversion fair value gap indicates market may drop further, with best case for smart money to get short against.
- ICT highlights a bullish order block in the price action, indicating a potential entry point for first stage accumulation.
- ICT emphasizes the importance of identifying the original consolidation area for accurate entry point classification.
38:56 - Market maker models and trading strategies.
- Trader must understand market maker models to identify potential setups.
- ICT teaches identifying second stage redistribution in market maker sell model, witnessed in high speed, low resistance liquidity runs.
42:34 - Trading strategies using chart analysis.
- The speaker discusses the importance of identifying Smart Money reversals as entry points in bearish markets.
- The speaker has 30 years of experience and warns that it will take a long time for beginners to anticipate Smart Money reversals as entry points.
- ICT identifies a low-risk short entry point by waiting for the market to break lower after a consolidation phase, using the highest high of the consolidation area as the entry point.
- The strategy involves managing the trade with a stop loss above the highest high, and anticipating a potential reversal if the market starts to move higher.
47:39 - Technical analysis and trading strategies.
- Trader discusses the importance of understanding price action and identifying key levels of support and resistance.
- The trader highlights a potential bearish order block as a second stage redistribution, indicating a fast and potentially sharp drop in price.
- ICT explains that the first stage distribution is often misinterpreted as a low risk short, but it's actually a pyramid entry.
- The second stage redistribution is when the market reverses and trades back up to the button, which can be identified by a bullish order block on the sell side of the curve.
53:33 - Forex trading strategies and market analysis.
- ICT discusses market structure, price and time alignment, and optimal trade entry in the New York open kill zone.
- ICT teaches that understanding the narrative and order flow is crucial for successful trading.
- ICT thanks his students and wishes them success with the content on his YouTube channel and Twitter.
Transcription
| 1 | 00:00:18 --> 00:00:31 | ICT: Welcome back, folks. This is their last teaching lecture on the inner circle trader YouTube channel. And before I get into this one, just let you know |
| 2 | 00:00:31 --> 00:00:45 | that this is one of the closest viewpoints to how I actually trade. Now, when I say that don't gloss over thinking, Well, that's all well and good. What does |
| 3 | 00:00:45 --> 00:00:58 | that mean? It means that you have to understand all the PDE arrays, you have to be familiar with them. Because what you may or may not realize is a market maker |
| 4 | 00:00:58 --> 00:01:12 | model is relying on your understanding of every PDF made available. So if you're looking at price, you're going to see things in price that are going to be |
| 5 | 00:01:13 --> 00:01:21 | salient to your understanding, if you don't know what a breaker is, if you don't know what a mitigation block is, if you don't know what inversion fair value gap |
| 6 | 00:01:21 --> 00:01:35 | is. The observation of seeing it real time as a market maker buy or sell model may escape you at time when you're looking at price action live. So one of the |
| 7 | 00:01:35 --> 00:01:47 | things I've seen throughout teaching this is that some of my students can see a market maker model really, really quick. And it's because they have been |
| 8 | 00:01:47 --> 00:01:55 | familiar with a multitude of PDA arrays not just simply an older block or a breaker so that they can see things and have a better understanding about price |
| 9 | 00:01:55 --> 00:02:08 | action. And that's what I mean by graduating in your understanding and not rushing this. So while this is the last model I'm teaching publicly, and the I |
| 10 | 00:02:08 --> 00:02:19 | guess the disclaimer going in, should be that this is going to be very difficult for a lot of you. And I'm not going to sugarcoat that. When I taught my private |
| 11 | 00:02:19 --> 00:02:29 | mentorship students, I told them that these are things that are going to require you to know all the things that I taught in mentorship, there's gonna be |
| 12 | 00:02:29 --> 00:02:38 | multitudes of market makers sell and buy models that are going to escape you, you won't see them until after the fact. But don't discount that as a wasted |
| 13 | 00:02:38 --> 00:02:49 | opportunity. log them, gentlemen, mark them up, okay, and then annotate them in a way where it looks like you've seen it coming in journal just like that. So |
| 14 | 00:02:49 --> 00:02:57 | that way, when you look at your journal, it'll be in your own words that you saw it coming, it's all pseudo experience, it's, it's conditioning your brain to see |
| 15 | 00:02:57 --> 00:03:05 | it as a positive thing. So that way, when you see it, again, it's a rewarding experience. And your subconscious is not trying to distract you from a painful |
| 16 | 00:03:05 --> 00:03:13 | experience. Whereas if you don't journal, and you only have bad experiences by trying to treat with real money, you're trying to do something where incurred |
| 17 | 00:03:13 --> 00:03:25 | risk is real, versus trying to read price action, and there's no monetary risk or gain. There's no ego, there's no pride, there's no pain, all these things are |
| 18 | 00:03:25 --> 00:03:38 | going to help getting you closer to understanding a market maker model. But for the sake of brevity, everything I disclosed in this teaching, just reverse it |
| 19 | 00:03:38 --> 00:03:49 | for a market maker by model, okay, because I'm going to focus primarily on a market maker sell model. Everything here is shown in reverse, if you are |
| 20 | 00:03:49 --> 00:03:59 | applying it to market maker by Mo. Now I do have lectures and teachings on this in the YouTube channel. So this isn't meant to be a be all end all, I'm leaning |
| 21 | 00:03:59 --> 00:04:07 | on the assumptions that you have already studied a lot of the things I'm going to talk about. So if this is one of the first videos you've ever watched by me, |
| 22 | 00:04:07 --> 00:04:14 | or if you're a relatively new student, this is probably going to go over your head. And that's a normal thing. Getting it's, it would be considered a little |
| 23 | 00:04:14 --> 00:04:24 | advanced. And that's why I'm saying it, it's, it's the closest thing to how I internalize price action when I'm engaging it. So 99% of the time when I'm |
| 24 | 00:04:24 --> 00:04:34 | taking a trade. It's usually something like this. That's the framework behind it. Okay, and I may or may not have the time or interest even to disclose the |
| 25 | 00:04:34 --> 00:04:44 | model that I'm actually trading inside of that would be the market maker buy or sell model. But when you look at it conceptually, you can fragment ties, these |
| 26 | 00:04:44 --> 00:04:54 | price swings and make one segment of the market maker model, whether it be a buy or sell model. And that in itself may be your unique model that you trade. Not |
| 27 | 00:04:54 --> 00:05:05 | that you're trying to trade the bottom of a market maker by model to the top or vice versa for sell, it's a matter of preference what you want to do, because |
| 28 | 00:05:05 --> 00:05:13 | there's a buy and sell curve by side of the curve and the sell side of the curve. And we'll discuss that in here now. But this teaching is my Market Maker |
| 29 | 00:05:13 --> 00:05:27 | models. Its algorithmic price delivery in institutional price swings. Alright, so I guess in a lot of ways, this is just basically my interpretation, and |
| 30 | 00:05:27 --> 00:05:37 | creating a language around swing trading. Now, when I say swing trading, what I'm referring to is if I'm bullish on trading from discount to premium, writing |
| 31 | 00:05:37 --> 00:05:51 | coattails of buy side delivery. If I'm bearish on trading from premium to discount, riding the coattails of sell side delivery. Now, when I mentioned buy |
| 32 | 00:05:51 --> 00:06:04 | side and sell side, you're thinking liquidity. And I'm gonna draw a distinction between the liquidity and the delivery. Right. So imagine, if you will, that |
| 33 | 00:06:04 --> 00:06:16 | you're looking at price, and those relative equal highs right here that we're looking at. Conceptually, we would anticipate a run above that. Now, if you can |
| 34 | 00:06:16 --> 00:06:26 | get that far in your understanding, from what I've taught, you have the beginning building blocks of understanding how to look for a market maker sell |
| 35 | 00:06:26 --> 00:06:34 | model. But I want to flesh this out a little bit, because it's not just simply understanding where relative equal highs and relative equal lows are, you have |
| 36 | 00:06:34 --> 00:06:45 | to understand what the market is trying to do, and gravitate to and for the premise of doing it to go higher, longer term, or to go up just to trick people |
| 37 | 00:06:45 --> 00:06:54 | into being long. And then going lower, longer term. That's narrative. So that's going to be outside the scope of this teaching. So again, it's going to be very |
| 38 | 00:06:54 --> 00:07:03 | frustrating for you, if you think this is going to be like a really elementary model, like the silver bullet, which is relatively simple, or model 2020, which |
| 39 | 00:07:03 --> 00:07:09 | is relatively simple. This one's going to have a whole lot of talking in it, because I'm reminding you of the things that are going to be supportive for you |
| 40 | 00:07:09 --> 00:07:22 | to understand how to trade these things. If you're trying to trade like me, you're going to have to learn to do what I'm talking about here. If you're not |
| 41 | 00:07:22 --> 00:07:28 | inspired to try to trade like me, and you just want to trade a silver bullet or model 22.2. And that's all that you're interested in. And you're content with |
| 42 | 00:07:29 --> 00:07:39 | being successful with that wonderful, you do not need to have this level of understanding, it is helpful to try to look at price action, every day, every |
| 43 | 00:07:39 --> 00:07:49 | week, every month and go through and see if you can find these types of models in price action. And by collecting them, you'll have a better understanding of |
| 44 | 00:07:49 --> 00:07:56 | what they look like in the future, because you've seen lots of examples of it that you've ferreted out of price action, not me pointing to it, or someone else |
| 45 | 00:07:56 --> 00:08:06 | pointing to it after the fact, you want to be able to do this on your own. But for the sake of this discussion, the understanding is, we should be able to see |
| 46 | 00:08:06 --> 00:08:23 | those relative equal highs and that being this here, in this here, now I'm using a close line chart. So it's going to be a rather crude depiction of a general |
| 47 | 00:08:23 --> 00:08:33 | idea. Okay, we'll transition to actual charts in a moment. But for now, I want you to just think conceptually, how if the market is going to run eventually, up |
| 48 | 00:08:33 --> 00:08:45 | above that, and if we could hold a bearish stance, meaning that we look at every rally as a suspect rally, if we're bearish, and then we're going to be looking |
| 49 | 00:08:45 --> 00:08:57 | for some measure of reversal. And then once that reversal is qualified, that meets the criteria for a market maker somehow, then we can go in and engage it. |
| 50 | 00:08:57 --> 00:09:10 | Now, an advanced interpretation of this would be anticipating the run above these relatively equal highs here, and being long prior to it. And the most |
| 51 | 00:09:10 --> 00:09:21 | advanced form of it would be to buy during the buy side of the curve. And then short it during the sell side of the curve. That is very advanced. And while I |
| 52 | 00:09:21 --> 00:09:31 | do have students that can do that, like me, not many of them can, they can either trade the long side of the buy side of the curve, or they can sell short |
| 53 | 00:09:31 --> 00:09:40 | on the sell side of the curve. So it's a matter of them picking what they can see clearly based on their present understanding and their experience. And don't |
| 54 | 00:09:40 --> 00:09:48 | try to rush it. Don't try to keep up with me. Don't try to keep up with my other students that are doing well. It's at your own pace that you learn this. That's |
| 55 | 00:09:48 --> 00:09:56 | the best place to learn about don't try to feel like you're you're behind or trying to catch up with the class because I have students that go back to 1996 |
| 56 | 00:09:56 --> 00:10:08 | So you're never going to catch up them. So I want you to take a look at that price movement here, if this is a market that you'd be trading, or interested in |
| 57 | 00:10:08 --> 00:10:09 | learning, |
| 58 | 00:10:10 --> 00:10:22 | these ideas are universal. So it's not a matter of it only applies to futures or only applies to index Futures, or Forex, it's universal, okay, so as long as |
| 59 | 00:10:22 --> 00:10:34 | there's a price feed attached to it, and it can be traded, these conceptual ideas can be applied to Okay. This whole idea from this run up to that level |
| 60 | 00:10:34 --> 00:10:48 | there, this is what I refer to as by side delivery. Okay, so when price is running higher, it's offering by side, it's giving the marketplace by sight as |
| 61 | 00:10:48 --> 00:10:57 | it's running higher. Now, for the purposes of running above this high in this high, it's running up to engage the liquidity that would be resting above these |
| 62 | 00:10:57 --> 00:11:10 | relative equal highs. So the distinction here is the directional movement when it's going higher prices in a buy side delivering liquidity above a single or a |
| 63 | 00:11:10 --> 00:11:21 | group of highs. That is by side liquidity, that's orders that are pending, whether it'd be a buyer to break out and go long, or to protect a short |
| 64 | 00:11:21 --> 00:11:36 | position. So liquidity is a stagnant price level, or levels. Where stops would reside by side delivery, is the actual animated movement of price moving higher. |
| 65 | 00:11:37 --> 00:11:48 | And as you probably would have guessed, when we're looking at price going lower, this here is what I refer to as sell side delivery. So the Express purposes of |
| 66 | 00:11:48 --> 00:12:00 | running above these relative equal highs, that function has been performed. So now price could, if we're bearish move lower, and then trade back below the |
| 67 | 00:12:00 --> 00:12:14 | previous rally low. So it's buyside delivery to the upside to engage liquidity, trap traders long. And smart money would go short here, and write it back down |
| 68 | 00:12:14 --> 00:12:23 | to stop out any individuals that were lucky enough to be long in this but kept the stop loss here or inside this run up during the buy side delivery, their |
| 69 | 00:12:23 --> 00:12:37 | stop loss will be tagged out. And again, with the premise of reaching for the new engineered, sell side liquidity, which would be the sell stops on long's |
| 70 | 00:12:37 --> 00:12:48 | that anyone would have been going long here, their stop loss would be placed right below here. So it's the rally up to take by side and then rip break back |
| 71 | 00:12:48 --> 00:12:58 | down to take the sell side on those individuals that were trying to go long and more astute enough to reverse or, at the very minimum close out in a profitable |
| 72 | 00:12:58 --> 00:13:14 | position. Now, as promised, we're going to look at it through the lens of open, high, low close candlesticks. So take a couple minutes look at this. Before I |
| 73 | 00:13:14 --> 00:13:23 | continue, pause the video before I start talking. make observations about what you think you see here what's salient to you. And when you're ready, unpause the |
| 74 | 00:13:23 --> 00:13:37 | video. Alright, so what we're looking at here is basically the same idea of price action. Instead of aligned close chart where every fluctuation is only |
| 75 | 00:13:37 --> 00:13:45 | needed by whether interval will be utilizing that closing price only not the highest highs and lowest lows, but the closing price. Here we're looking at the |
| 76 | 00:13:45 --> 00:13:56 | highest time lowest low and the open and close of every individual candlestick of this respective timeframe. So we see the relative equal highs here with this |
| 77 | 00:13:56 --> 00:14:07 | high in this hot here in the mount the market rallies up here. So all this is the buy side delivery. And in subsequent sell side delivery, attacking the sell |
| 78 | 00:14:07 --> 00:14:20 | side that was created at the run higher in this run higher attacks to relative equal highs here where liquidity is. So markets go up for two primary reasons. |
| 79 | 00:14:21 --> 00:14:33 | One, it goes up to engage by staff which is by side liquidity, or it goes up to an inefficiency. What is that? Well, if you look right here, that's an |
| 80 | 00:14:33 --> 00:14:41 | inefficiency. We have this small little segment of price action where the previous candles low stopped here, the next candle opens trades up a little bit |
| 81 | 00:14:42 --> 00:14:53 | goes lower. The next candle we open trade up stop here and then we move lower. This separation between these three candles here that one candle in the middle. |
| 82 | 00:14:53 --> 00:15:03 | This is what I call a fair value gap. It's a very specific price level that we look for And it's one of the most visual things you can see from our repertoire |
| 83 | 00:15:03 --> 00:15:10 | and the things I teach you I should jump right to it when you see it. And in this case, if you've missed it, you can see clearly now it's highlight. So |
| 84 | 00:15:10 --> 00:15:22 | because it's a down closed candle, what kind of inefficiency is it a fear of a gap classified as a CB s? IBI? sellside inbalance by sight and efficiency, |
| 85 | 00:15:22 --> 00:15:32 | meaning when these form the markets algorithm that produces the fluctuations in price, not because it's buying and selling pressure, but the market rallies to |
| 86 | 00:15:32 --> 00:15:41 | these predetermined levels because it has to offer what here, this one single candle went lower. So what does it need to do if he's going to be an efficient |
| 87 | 00:15:41 --> 00:15:50 | market? It needs to trade up, back in between these two price points, this candles low this candles high. We see that here? This candle trades up to it. |
| 88 | 00:15:50 --> 00:16:01 | But where does the close stop? Right, the higher the next candle? We open and we trade back down? Yes, there was a small wick here. Yes, there was a smaller wick |
| 89 | 00:16:01 --> 00:16:10 | here. That is acceptable. That's permissible. But the bodies tell us the narrative. So all of this rally up here was under the pretense that we would see |
| 90 | 00:16:10 --> 00:16:22 | it just simply trade back to this little area here. Above the buy side about this high in his high to ICT, how far can it go above these relatively equal |
| 91 | 00:16:22 --> 00:16:31 | highs, you'd have to look to see if there's any close proximity inefficiencies. In this case, we have one right here, notice this Campbell's tail goes way |
| 92 | 00:16:31 --> 00:16:40 | lower, and we open trade back up making the low the fair value gap. And then we trade here lower than the next candle we open went lower. So all these three |
| 93 | 00:16:40 --> 00:16:47 | candles here we've had a lot of back and forth price action, there's no fear of a gap here, we can clearly see there's a gap, there's only one candle, making |
| 94 | 00:16:47 --> 00:16:57 | that defined range of that low of that candle in that candles high. So that small little area here is a fair value gap, the algorithm will go back to that |
| 95 | 00:16:57 --> 00:17:10 | and reprice to it, how by going back up to it and offering a patch filling in this only one singular down closed candle. Now we have an up close candle laying |
| 96 | 00:17:10 --> 00:17:23 | directly right on top of it. So it patches over the inefficiency here in price. So right away, you can see while this discussion is primarily market maker |
| 97 | 00:17:23 --> 00:17:36 | models. To understand what my market maker model is, you have to understand a plethora of other supporting studies. So while it may be one of those things |
| 98 | 00:17:36 --> 00:17:46 | that you're going to try to gravitate to over time, just understand it's going to take a lot of time to understand the full magnitude of what's available in |
| 99 | 00:17:46 --> 00:17:57 | terms of deciphering and reading price. It's not to simply here's a time of day. Here is a fair Vega. And where's the draw on liquidity. When you're using a |
| 100 | 00:17:57 --> 00:18:08 | market maker selling bimodal, you're looking at multiple draws on liquidity. And you have to be more nimble. So I'm saying this not to discourage you. But to |
| 101 | 00:18:08 --> 00:18:17 | remind you that it's going to take a whole lot more effort than you probably realize going into this. I've made available very, very simple, straightforward, |
| 102 | 00:18:17 --> 00:18:25 | elementary models using the concepts I've created. So if you get discouraged after this, just know that you can always revert back to the silver bullet or to |
| 103 | 00:18:25 --> 00:18:37 | 2022 or optimal trade entry models are very simple. So let's go into greater detail here how the market ran up into this area here and focus on how it went |
| 104 | 00:18:37 --> 00:18:46 | down not just simply to blow the sell side of that original rally up. But it went down to this old low right here. Look real close, you'll see that went just |
| 105 | 00:18:46 --> 00:18:59 | below that. That's not random. This right here is a boss Annabelle Ansel said an efficiency. It's the opposite of this singular candle here. It's an upclose |
| 106 | 00:18:59 --> 00:19:08 | candle, so it wouldn't be a SEBI, it would be a busy box that unbalanced also inefficiency. So it digs into this just by a little bit, but specifically right |
| 107 | 00:19:08 --> 00:19:16 | below that low. Again, that's not random. These are things I'd like to look for. You can also see how we have that same thing occurring here. This is a bus on a |
| 108 | 00:19:16 --> 00:19:20 | balance, I was on an efficiency again, the opposite of this. |
| 109 | 00:19:21 --> 00:19:34 | Up close candles that create a fair Vega or inefficiency is referred to as a busy. The classification by pdra is fair Vega. But it's an up close candle. So |
| 110 | 00:19:34 --> 00:19:44 | it's a buyside unbalanced sellside inefficiency, meaning the price will want to go back down to it eventually. And in here we have that imbalance and then |
| 111 | 00:19:44 --> 00:19:55 | trades were down. Once it gets into entry prices to the waterblock then it rallies back up creating the initial stage of what a shift in market structure |
| 112 | 00:19:55 --> 00:20:08 | above this high here. So now we can look for a retracement. and back down in. So is as it's retracing. We're anticipating the price, do what? eventually reaching |
| 113 | 00:20:08 --> 00:20:19 | for the high here and here. So we can look for a lower timeframe to give us a scenario, where if we think it's going to go above these relative equal highs, |
| 114 | 00:20:19 --> 00:20:29 | and we can see that this airbag that wasn't hiding, it's in plain view, it should stand out on your chart. That's why you're encouraged by me to annotate |
| 115 | 00:20:29 --> 00:20:37 | them when you see them. So if you see a drawn liquidity that's setting up above or below the marketplace, don't just limit your focus to that look in close |
| 116 | 00:20:37 --> 00:20:48 | proximity just above these bar side. Liquidity highs here that are relatively equal. How far can it go above it? While looking over here? There's no |
| 117 | 00:20:48 --> 00:20:56 | inefficiency here, but there is one right there. So how far can it go above these relative equal highs there and look where the body stuff. Okay, so that's |
| 118 | 00:20:56 --> 00:21:07 | not random. Right, so we're gonna zoom in here a little bit, drop down into a lower timeframe chart here. And don't worry, I'll let you know what this is as |
| 119 | 00:21:07 --> 00:21:25 | we get to the close of the lecture. But just stick to what I'm showing you here. We have the low by sight delivery trading up into the fear Vega. That was on a |
| 120 | 00:21:25 --> 00:21:37 | timeframe that was 60 minutes. But now we're on a 15 Minute. So this timeframe, here is a 15 minute timeframe. It's one quarter of what was shown as the |
| 121 | 00:21:37 --> 00:21:49 | previous chart. So there's four times the number of candles. And I've given you a reference point that it was based on a 60 minute or hourly fair value gap in |
| 122 | 00:21:49 --> 00:21:58 | the form of a CV, so I'll send a balanced bias on efficiency. And still you can see the body's respecting and only the candlesticks wicks, are piercing it see |
| 123 | 00:21:58 --> 00:22:08 | that that's very, very indicative of qualifying the fact that we went up to a specific level. And therefore we can trust that the algorithm is kind of like |
| 124 | 00:22:08 --> 00:22:19 | broadcasting to those that know how to look at it and see it that it's likely to now reprice lower reprice to where below this low and any accelerated run below |
| 125 | 00:22:19 --> 00:22:27 | this low, how far can it go? Is there any efficiencies over here? Don't look at this one. Because that's above that low, we would already be anticipating a |
| 126 | 00:22:27 --> 00:22:38 | retracement back below that, where we look, the rejection block, which is the lowest down close. And then we have these relative equal lows here. And you see |
| 127 | 00:22:38 --> 00:22:49 | it just goes a little bit below that low right there. We're gonna get into this in a moment. For now, just notice that we have ran above the buy side, that old |
| 128 | 00:22:49 --> 00:23:01 | high here, the old high here shift in market structure on an hourly chart above this high here. So it's retracing, what's it retracing back down into the fair |
| 129 | 00:23:01 --> 00:23:14 | agar waterblock? Right there. So now, does the market offer consolidation? That's what we would be expecting here, is it consolidating is it offering a |
| 130 | 00:23:15 --> 00:23:25 | small little pause in price where it goes sideways for a little while, which would be accumulating long positions, that's allowing smart money to accumulate |
| 131 | 00:23:25 --> 00:23:39 | Long's I'm gonna zoom in is the same timeframe. Okay. So it's 15 minute. Here's that low, you can see how we just went below right here, see that? Here's that |
| 132 | 00:23:39 --> 00:23:48 | low inside the fair value gap with the order block, which is a damn close candle. Again, we will be anticipating some measure of consolidation, not |
| 133 | 00:23:48 --> 00:24:00 | dropping lower consolidation. Because that means we would be anticipating a run above the buy side here. In that previous height, it's to the left outside the |
| 134 | 00:24:00 --> 00:24:08 | scope of what I'm zoomed in on. Now, you can see it's still being highlighted. And in that 60 minute, fair value got in the form of sellside announced by some |
| 135 | 00:24:08 --> 00:24:20 | efficiency that's here. Okay. So what we're going to do is going to drop down to even lower timeframe, and see if there's any more detail in here with a five |
| 136 | 00:24:20 --> 00:24:33 | minute chart. So now we're inside of the lower timeframe, five minute chart. And I've highlighted now, this little area right down here, I told you we would talk |
| 137 | 00:24:33 --> 00:24:47 | about that in here we're looking at a balanced price range. A balanced price range is where the market has both a downside and upside or sell side delivery |
| 138 | 00:24:47 --> 00:24:58 | and buy side delivery that overlap one another in the same relative range in price. So you can see how this candle is high. That candles low that would |
| 139 | 00:24:58 --> 00:25:07 | normally be what Solsona balanced by sound efficiency. But look what's happened over here we have a high a big up close candle, and this candle is low. So what |
| 140 | 00:25:07 --> 00:25:18 | does that make this apply to Annabelle sauce on efficiency. So there's an overlapping between a city and a busy within the general area of the same price |
| 141 | 00:25:18 --> 00:25:28 | range. So I'm using the low here in the high here. So that way we can see how this becomes a balanced price range. These are trap traders. Okay, listen, |
| 142 | 00:25:28 --> 00:25:44 | here's a trap trader, or trap traders that would have been caught short. In the classic days of commodity trading, if you were to see old patterns, like we |
| 143 | 00:25:44 --> 00:25:55 | considered an island reversal. Okay, this is the closest thing that I can kind of use to describe what's occurring when there's a bounce price range when it's |
| 144 | 00:25:55 --> 00:26:07 | extreme like this. So when we have a big decline, large range candle that's down and then eventually, not like months later, not weeks later, but when it's a big |
| 145 | 00:26:07 --> 00:26:18 | drop, and a handful of candlesticks like this, it's not a whole lot of candles and eventually rip back hire. That means that this was someone that's been |
| 146 | 00:26:18 --> 00:26:28 | caught, they're short, and they quickly repriced and leave them down here. So when I see that, I look to see where those two reference points are, where the |
| 147 | 00:26:28 --> 00:26:38 | market drops quickly for sell side delivery. And then when it rallies back up quickly. Those one big candles down when big candles up all the price action |
| 148 | 00:26:38 --> 00:26:49 | below it. I would view that as trap traders. So that means by itself that gives me narrative that it's probably going to go higher. So now cue up the idea of |
| 149 | 00:26:49 --> 00:27:00 | what would it be reaching for? While we see it was dropping that down into an inefficiency here, the buy side here in the old high back to the left in that 60 |
| 150 | 00:27:00 --> 00:27:12 | minute. Fair value gap. That's a Sibi. Up here. We're still in a 15 minute timeframe, by the way miscued earlier, calling it a five minute Z, the idea of |
| 151 | 00:27:12 --> 00:27:21 | the market consolidating. That's what we're showing here. Now, how am I referencing this consolidation, this is the part of it that becomes like a neck, |
| 152 | 00:27:21 --> 00:27:34 | okay? You might not have the exact candles framed like this, when you see in original consolidation, so when I call a original consolidation, that is where |
| 153 | 00:27:34 --> 00:27:42 | the market is cumulating. So what I did here, I see these two candles here, and then the body of this one, and the body of this one. So right away, my eye jumps |
| 154 | 00:27:42 --> 00:27:51 | to that, because what it is smooth edge. So I want to use that as the high of the original consolidation. What's the low, the lowest low, see how easy that |
| 155 | 00:27:51 --> 00:28:01 | one. So when I'm looking at the original consolidations, I'm looking for a repetitive, overlapping or reoccurrence of a level that's being constantly |
| 156 | 00:28:01 --> 00:28:11 | referred back to inside of consolidation. Now, I'm anticipating the market to go higher, to go above the buy side here and then reach up into this inefficiency |
| 157 | 00:28:11 --> 00:28:22 | up here. But I'm anticipating also, that it should offer some measure consolidation, because if it's gonna do that, my premise behind swing trading is |
| 158 | 00:28:22 --> 00:28:28 | it's all on the basis of a market maker sell model or a market maker by model. That's what swing trading is whether you realize it or not, whether you want to |
| 159 | 00:28:28 --> 00:28:36 | subscribe to it or not. That's what the markets doing. It's not doing harmonic stuff. It's not doing Elliott Wave stuff. It's moving on the principles of |
| 160 | 00:28:36 --> 00:28:44 | running to liquidity, or it's running to inefficiencies. And if it's not doing, it's consolidating, and if it's not doing that, it's highly manipulated. And |
| 161 | 00:28:44 --> 00:28:52 | then you're having some kind of manual intervention, some kind of shock and awe surprise rate announcement, some kind of wartime event, something that would |
| 162 | 00:28:52 --> 00:29:00 | destabilize the marketplace that you can't, and I can't predict before it happens. Okay. So that's always the underlying incurred risk that we have as |
| 163 | 00:29:00 --> 00:29:01 | speculators. |
| 164 | 00:29:03 --> 00:29:11 | So this area here is where I'm framing that you can see still look how many times it's referring to that same level that's based over here. So when I'm |
| 165 | 00:29:11 --> 00:29:19 | looking at consolidations, I'm looking at levels that constantly repeat, I'm not just going to lay on top of this high or this high, or this high, I'm looking |
| 166 | 00:29:19 --> 00:29:27 | for something that frames it very clearly. Now, when you go back and look at my examples when I'm doing this in the past, and I've been doing for a long, long |
| 167 | 00:29:27 --> 00:29:39 | time since the 90s. But the example of made public look and see how drawn your attention to these specific consolidations? Do you see it? Do you see it as a |
| 168 | 00:29:39 --> 00:29:47 | consolidation? Go back and look at your other annotations that maybe have journaled before? Start looking at like this so that way when you understand it, |
| 169 | 00:29:48 --> 00:29:54 | when the market does eventually lead the original consolidation because we're unknowingly bullish, we have traders that are trapped down here. They don't want |
| 170 | 00:29:54 --> 00:30:04 | to drop down below to give them an opportunity to get out. Even though the mark He does eventually dropped lower here, they may not come back down in this area |
| 171 | 00:30:04 --> 00:30:13 | until a later time. It could be weeks, it could be days, it could be hours, it could be, you know, a time that's unknown to you. That's outside the scope of |
| 172 | 00:30:13 --> 00:30:21 | the presentation here, what you're looking for what I'm looking for is trades that make sense where the markets reaching for liquidity, inefficiencies, and |
| 173 | 00:30:21 --> 00:30:29 | then reversing for the sake of going back against the original consolidation, where people are going to see this as a support level. And I don't trade support |
| 174 | 00:30:29 --> 00:30:41 | resistance, I attack Support Resistance, I attack liquidity above old highs, I attack liquidity below lows. And I use inefficiencies as targets or means of |
| 175 | 00:30:41 --> 00:30:53 | entry to trade against those same ideas, which would be anti retail theory. I'm against it. I'm opposed to retail theory, anything retail. If it's Support |
| 176 | 00:30:53 --> 00:31:07 | Resistance, harmonic patterns, Elliott Wave again Wycoff all that stuff. It's all retail logic, in my understanding is, that's the reason why that 90% people |
| 177 | 00:31:07 --> 00:31:17 | that try to use all that stuff fail any right and they fail rather quickly. So when we can frame the original consolidation properly, then once we leave it, |
| 178 | 00:31:18 --> 00:31:27 | how are we how are we leaving it here? Look at the body are there? Yeah, we had a wick here. We had a wick right there, too. But look at the body staying inside |
| 179 | 00:31:27 --> 00:31:36 | that original consolidations, you know, that's characteristic to algorithmic price delivery. It's indicating to individuals that I'm trying to show you that |
| 180 | 00:31:36 --> 00:31:45 | this is the language that traders that use this information. And the algorithms, the high frequency trading algorithms, they highlight these things in price. And |
| 181 | 00:31:45 --> 00:31:58 | so it gets their high frequency trading algorithm in the hunt for long entries. When is it allowed to take too long? That candle right there tells you so now we |
| 182 | 00:31:58 --> 00:32:07 | can then refer back to the same level here. If it trades back to that level. What's it doing? It's returning back to the original consolidation. That's how I |
| 183 | 00:32:07 --> 00:32:16 | teach my market maker and sell model and by model, the original consolidation, it can leave it it doesn't have to touch it, but if it does, that's usually a |
| 184 | 00:32:16 --> 00:32:27 | trade. So this would be your your original entry. Okay, so you go along there. But sometimes it will offer a return back to the rich consolidation. So it might |
| 185 | 00:32:27 --> 00:32:38 | just need a higher order entry and not offer something right at the height of the original consolidation. The market rallies up trades right into that 60 |
| 186 | 00:32:38 --> 00:32:48 | minute fair breakup. sebi. body's telling narrative, it's not interesting going higher. Why? Because look at this big candle drop down there, wonderful. We have |
| 187 | 00:32:48 --> 00:33:03 | an inefficiency here. inefficiency here. Drops aggressively. Below the written consolidation rate back to the high of the bounce price range, right there, |
| 188 | 00:33:04 --> 00:33:16 | which is also just below that old low right there that make these relatively equal lows, what suspect for sell side, sell side liquidity, resting the low |
| 189 | 00:33:16 --> 00:33:26 | there, that's the draw, if it's going to go well beyond the low here where the original consolidations sellside, liquidity would be resting. So in, in layman's |
| 190 | 00:33:26 --> 00:33:36 | terms, what we're saying is, it's building up a lot of interest to go higher, then it rips higher, comes back down gives one more chance. Okay, one more |
| 191 | 00:33:36 --> 00:33:47 | chance, then takes off takes above this high here, then reaches up into the inefficiency, then at that point, does it indicate that it wants to go lower? |
| 192 | 00:33:47 --> 00:33:55 | Because if you're bearish and you're extremely bearish, to the degree where you think this is a good entry point, you can sell up here as it does that. And |
| 193 | 00:33:55 --> 00:34:02 | that's a little scary, I understand that. But eventually, you get these multiple entries in here we go short. We'll look at them in greater detail in a minute. |
| 194 | 00:34:03 --> 00:34:11 | But eventually, the idea was the drawback down into this area here. But if it goes below this, how far can it go? There's no inefficiency over here. It's |
| 195 | 00:34:11 --> 00:34:24 | these relatively close, and that's where the market drops to. Alright, so now we have more candlesticks. And now this is the five minute chart. So here's the |
| 196 | 00:34:24 --> 00:34:31 | original consolidation. You see the market does in fact, drop back down in inversion fare Vega, I don't have it highlighted because it'd be too many things |
| 197 | 00:34:31 --> 00:34:39 | on the chart. But for you, that's inversion Fairbury got meaning that usually that would be sellside amounts by some efficiency. If the market trades back up |
| 198 | 00:34:39 --> 00:34:48 | into we would see it what trade lower, but if it's an inversion fair value gap, I mean, it's going to go above it come back down and use it as a discount rate. |
| 199 | 00:34:48 --> 00:34:58 | It's inside of the region consolidation in rallies, takes the buy side treats the 60 Minute fair a gap sebi. Even on the five minute look at the candlesticks, |
| 200 | 00:34:58 --> 00:35:10 | the bodies are inside That Sibi it's indicating yes, there's wicks going on in here. But that's just the damage, okay, where it's reaching for the best case |
| 201 | 00:35:10 --> 00:35:23 | for smart money to get short against. And then we see it drop lower. zoomed in on that five minute chart. Here, we have the original consolidation, to rally |
| 202 | 00:35:23 --> 00:35:31 | up. And I want you to pause the video again. And if you're not doing this, I promise you, you're really not getting the same measure of understanding and the |
| 203 | 00:35:31 --> 00:35:42 | opportunity to see it in your own eyes and test your observations. You might not get it right, but that's okay. Trying in attempting to do it and seeing things |
| 204 | 00:35:42 --> 00:35:52 | in detail. You might not have it exactly right. But what happens if you do have the things I'm going to point out? It's encouraging. So don't rob yourself the |
| 205 | 00:35:52 --> 00:36:00 | opportunity to have that. So pause the video, take a look at all the price Run from here up to here, and then down? What do you see? |
| 206 | 00:36:06 --> 00:36:17 | All right, if you haven't, pause the video and want to you better have a pause because I'm about to continue. When you're looking at this, my eye sees this |
| 207 | 00:36:20 --> 00:36:34 | return to the region consolidation, the market rallies up, we have a down close candle that's just below this area right here, what is this up close candle |
| 208 | 00:36:34 --> 00:36:54 | become? Polish breaker, low, high, lower low, down close candle inside of the breaker candle over here. That's a bullish order block right there. So when it |
| 209 | 00:36:54 --> 00:37:05 | rallies up and trades back down in our target is what up here. The initial draws that liquidity above that high in the older high to the left, it's not inside |
| 210 | 00:37:05 --> 00:37:15 | this fractal of price action anymore. But it's highlight with this line. So this drop down, that could be if you're not seeing the original salvation correctly, |
| 211 | 00:37:15 --> 00:37:25 | and this would be your original entry or your first stage accumulation. And then this would be second stage re accumulation here, and it rallies up. But if you |
| 212 | 00:37:25 --> 00:37:34 | don't for the sake of those individuals that wouldn't have it identify correctly in terms of how big the original consolidation is, when it leads into and comes |
| 213 | 00:37:34 --> 00:37:42 | back down in. I'm making an allowance for that for this lecture here. So you might not have that skill set in the beginning to see exactly how to define the |
| 214 | 00:37:42 --> 00:37:52 | consolidation. Then if that's the case, then the bullish order block here would be your first stage accumulation for you. Is it wrong to classify it this way? |
| 215 | 00:37:52 --> 00:38:03 | No, it's based on your understanding. They're both correct. Based on the level of experience and knowing what you're doing, the only distinction is how you may |
| 216 | 00:38:03 --> 00:38:11 | or may not have had the original consolidation mapped out right. So many of you may not have seen this as a return to the rich consolidation, you may have seen |
| 217 | 00:38:11 --> 00:38:22 | this as relatively equal highs being taken. And now it's going to go lower. Not knowing all the other narrative that I've outlined here. So damn close candle |
| 218 | 00:38:22 --> 00:38:32 | here, in scope of bullish price run during biocide delivery, aiming for this area up in here, the down closed candle straight into here. So there's your |
| 219 | 00:38:32 --> 00:38:44 | entry for a first stage accumulation, or it would be second stage re accumulation if you use this as your first entry. So again, just like you |
| 220 | 00:38:44 --> 00:38:56 | understand that, sometimes you will only have one point of accumulation and not have a return to original consolidation, it might just rip higher. If you want |
| 221 | 00:38:56 --> 00:39:07 | opportunity to go in and then run real quick to it then. And then after that bleed lower. So it has a lot of different variances to it again, which is why I |
| 222 | 00:39:07 --> 00:39:17 | said that you have to understand everything that I teach, to be able to be well versed with 3d market maker models. That doesn't mean that you can't see a very |
| 223 | 00:39:17 --> 00:39:25 | generic clean is day obvious market maker sell or market maker by model. When it's in the price action. It's obvious, it's real easy to see it. But the |
| 224 | 00:39:27 --> 00:39:37 | potential for more of them to be there in in your fingertips to be able to reach and see I can see more setups now. That's going to increase over time. Okay, so |
| 225 | 00:39:37 --> 00:39:45 | it doesn't understand that. So what have I said here so far? Well, you have an opportunity to be in a long entry here, or a long entry there. So there's two |
| 226 | 00:39:45 --> 00:39:53 | setups, which one of these without going any further so far, which one of these would make sense for you as a trader right now with your present understanding? |
| 227 | 00:39:54 --> 00:40:02 | Obviously, it's a rhetorical question because I can't obviously get the response from you here. But I want you to think about that, because I have some traders |
| 228 | 00:40:02 --> 00:40:10 | that would only be interested in taking this as their entry. And if they never get to return to the original retaliation, they are not long. Others want to see |
| 229 | 00:40:10 --> 00:40:18 | that, then it rallies into the next buying opportunity. As long as we don't get to the target up here, they're willing to take this as the first stage |
| 230 | 00:40:18 --> 00:40:28 | accumulation. And that's their entry. And then they ride it up into that target, they may or may not have the ability or interest in trying to go short that |
| 231 | 00:40:28 --> 00:40:38 | time. Other traders can identify this as the first stage of accumulation, maybe not see this one down here. And they see this and they want to wait to see if |
| 232 | 00:40:38 --> 00:40:48 | price rallies up to that point, then they use this part as their model where they go short, in a pyramid in here, here and wait for the run below here. And |
| 233 | 00:40:48 --> 00:40:58 | don't even consider something like done here. Is that wrong? No. I have other students that want to see it, do this, then really prove it wants to go lower, |
| 234 | 00:40:58 --> 00:41:08 | and then they'll trade that one right there. And then go into that that's a unicorn. Okay, unicorn is second stage redistribution and assault model market |
| 235 | 00:41:08 --> 00:41:20 | maker somehow. And they want to say unicorn, meaning everything's in your favor, you got everything behind you. It's a so it's so one sided, and you can see it, |
| 236 | 00:41:20 --> 00:41:30 | it's usually the most energetic swing high that it drops down from if you've classified everything correctly, and everything to the left, on the bottom of |
| 237 | 00:41:30 --> 00:41:38 | the curves identified correctly, and everything labeled right, and you have time and price in agreement with you. Chances are you're probably going to ride them |
| 238 | 00:41:38 --> 00:41:46 | lightning, which is really quick sudden drops. And it's real fun to be in those low resistance liquidity runs. But that's one of the most qualifying factors in |
| 239 | 00:41:46 --> 00:41:56 | my trading. And how I teach it to my students is to find the easiest, high speed, low resistance liquidity runs, they're going to always be the second |
| 240 | 00:41:56 --> 00:42:08 | stage redistribution in the market maker sell model, which is witnesses right here. Okay, so if you miss this one, this is also what I teach, which is a |
| 241 | 00:42:09 --> 00:42:18 | battle about self sufficiency, consequent encroachment, which is the midpoint of this inefficiency didn't get to this level up here yet. Nope. So this here is a |
| 242 | 00:42:18 --> 00:42:27 | bullish fair value gap consequent encroachment, second stage re accumulation right there. Now for some of you, you might be going long here, and then adding |
| 243 | 00:42:27 --> 00:42:41 | a pyramid thing to that to right into this level here. That might be your treat. Is anything wrong with that? Nope. Absolutely not. Others that are high high end |
| 244 | 00:42:41 --> 00:42:50 | students they have been doing for a long time, they're going to sell these Mohawks because the bodies are already indicating that what is that when they go |
| 245 | 00:42:50 --> 00:43:03 | outside of that 60 minute fair Vegas City. So every rally up here, they're going to go short. And anything outside of that pdra is high, which is a 60 Minute |
| 246 | 00:43:03 --> 00:43:14 | very, very gap. That's an extreme, extremely overbought without an indicator entry. And you've seen me do that in my executions, you've seen me do that with |
| 247 | 00:43:14 --> 00:43:23 | my pyramid entries. You've watched me trade just outside of the Faraday gaps when I'm bearish, or bullish. And it becomes the usually within a tick or two |
| 248 | 00:43:23 --> 00:43:33 | from the actual highest higher, lowest low of those individual candlesticks. And then it starts running the direction I need to go. This is what I refer to as a |
| 249 | 00:43:33 --> 00:43:43 | Smart Money reversal. You are years away from ever being able to do that consistently. I promise you, that's not me trying to talk down to you. It takes |
| 250 | 00:43:43 --> 00:43:49 | a great deal of understanding of knowing what it is that we're trying to do here because essentially what you're doing is you're picking the tops in bearish |
| 251 | 00:43:49 --> 00:44:03 | markets. Now, did you hear what I said? We're picking the tops in bearish markets. I'm not afraid of that. I don't try to discourage that of my students. |
| 252 | 00:44:03 --> 00:44:13 | But I do absolutely discourage that in my own trading when it's a bull market. I'm not trying to pick the top. Because they're always going to go well beyond |
| 253 | 00:44:13 --> 00:44:21 | what I think and what you think it's going to do. But when we're bearish, we can really get refined and trade the tops in bear markets because they're |
| 254 | 00:44:21 --> 00:44:29 | predictable. They have a characteristic they have a rhyme or reason as to why price should be here a specific way. Versus when you're an extremely bullish |
| 255 | 00:44:29 --> 00:44:39 | market, how to you know, I don't know, every single time that they won't go in there and intervene one more time and drive it one more time higher. That's why |
| 256 | 00:44:39 --> 00:44:46 | it's dangerous to try to pick tops and bull markets. But when the market is predisposed to go lower, and you have all these types of characteristics in |
| 257 | 00:44:46 --> 00:44:57 | play. It's rather simple to anticipate where the markets going to run, create an extreme and do a Smart Money reversal. But that easy perspective I'm talking |
| 258 | 00:44:57 --> 00:45:04 | about that comes with 30 years experience you You don't have 30 years experience someone you don't even have five years experience. So it's going to take a long |
| 259 | 00:45:04 --> 00:45:13 | time than I mean long time for you to be able to see Smart Money reversals as your entry points. Okay, but you don't need that. anticipate it being there. And |
| 260 | 00:45:13 --> 00:45:22 | then once it does, the market breaks lower in any rally back up, look at the bodies here. Okay. That is what that's consequent encroachment on the 60 Minute |
| 261 | 00:45:23 --> 00:45:31 | fair that you get SEBI, that's your low risk short, we're trusting that we've already mohawked above here with these wicks. So now we're back down in here. So |
| 262 | 00:45:31 --> 00:45:40 | any, any attempt to trade in the middle point of this shaded area here, that could be your low risk short stop loss right above here. Whenever you get |
| 263 | 00:45:40 --> 00:45:50 | stopped down ICT, same thing, wait for it to go lower, lead the fairway get low. And if you can touch the bottom of it again, I will use that as my entry. Stop, |
| 264 | 00:45:50 --> 00:45:58 | we'll be right back above, wherever the highest high was formed, or the consequent quadrant of the wick, it formed a higher wick here. That's how I'd |
| 265 | 00:45:58 --> 00:46:06 | use it. I would not be afraid to go back in. But that low risk is |
| 266 | 00:46:07 --> 00:46:16 | scary. For some of you, most of you, I'll be honest with you, you would never look to victory like that. But how many examples of I've done this, I've done |
| 267 | 00:46:16 --> 00:46:29 | many examples of this. In index futures in commodities. I've done it in forex pairs. I've shown a plethora of examples of this, not just talking about like |
| 268 | 00:46:29 --> 00:46:38 | I'm doing here, I'm actually executing, I'm doing the entries, I'm annotating the chart as I'm doing it too many times with a one minute chart timeframe. So I |
| 269 | 00:46:38 --> 00:46:47 | have to know what I'm doing to know not only what I intend to do trade wise and managing with a stop loss, but also to outline it and type it out as the markets |
| 270 | 00:46:47 --> 00:47:00 | gyrating with no market replay all life. So the market breaks lower. And now what do we have? We're on the right side of the curve. That means this |
| 271 | 00:47:00 --> 00:47:11 | hypothetical invisible line where the market trades up during buyside delivery trades into our target, where we anticipate the likelihood of a reversal. If the |
| 272 | 00:47:11 --> 00:47:21 | market starts to reverse, then we use the highest high that informs to the left of that is what the buy side of the curve. That means everything leading to buy |
| 273 | 00:47:21 --> 00:47:30 | side delivery. Now on the left side is what the sell side of the curve, that means we're in sell side delivery, what is sell side delivery going to be aiming |
| 274 | 00:47:30 --> 00:47:39 | for the original consolidation low. Why? Because it wants to reprice under the original accumulation for sell side liquidity, the stops that are resting below |
| 275 | 00:47:39 --> 00:47:48 | here. For traders, they wrote this up. They're married to the idea it's gone to the moon, Bitcoin 100,000. That type of mentality. Eventually it drops and goes |
| 276 | 00:47:48 --> 00:48:03 | attacks them. Okay. So we went above the buy side here to a specific price point. We have a breaker, high, low, higher high body staying inside of the PT |
| 277 | 00:48:03 --> 00:48:15 | array on the 60 Minute. So it's indicating Everything is there for this start dropping basically, that low is taken out, right there. Was it create very I got |
| 278 | 00:48:15 --> 00:48:24 | between this candles low that candles high? That could be a trade in itself. But this is a breaker. So how far is it gonna go back up into it? Right there. So |
| 279 | 00:48:24 --> 00:48:34 | you're bearish breaker that is your first stage distribution. So you want to wait for the smart money reversal. You want to see a low risk short, does it |
| 280 | 00:48:34 --> 00:48:42 | show a willingness I want to run away? Wonderful. That's tape reading. Now you have a fair Vega, and you have a breaker trades up into it go short. That's your |
| 281 | 00:48:42 --> 00:48:54 | first stage distribution. Does it break lower? Yes, it does. Then it does what it trades back to where we had by side outlined. Support Resistance folks are |
| 282 | 00:48:54 --> 00:49:03 | going to see that as what remember that relative equal high, there was a little bit higher than this one to the left, they're going to see that as a break of |
| 283 | 00:49:04 --> 00:49:14 | resistance turn support. That stuff does not work. Okay, it does not work. You have to understand what price is going to do, why it's going to do it. What's |
| 284 | 00:49:14 --> 00:49:22 | the present narrative? And where's the liquidity or inefficiency is going to really draw to you can't just simply look at hypothetical imaginary lines that |
| 285 | 00:49:22 --> 00:49:31 | are horizontal or diagonal for goodness sake, we can call a trendline and all that stuff is mythology. It doesn't work it doesn't hold up. So you have to know |
| 286 | 00:49:31 --> 00:49:44 | what price is trying to do how gravitates and very specific precise elements to price action. The market rallies up here into a bearish order block which is the |
| 287 | 00:49:44 --> 00:49:54 | up close candle here trades into it digs into half the body right there. That's mean threshold. So that bearish order block is your second stage redistribution. |
| 288 | 00:49:54 --> 00:50:06 | This is going to be the fastest elevator ride of the movie. Going down. Now, it doesn't mean it won't be a, you know, a sharp drop, consolidate, sharp drop, |
| 289 | 00:50:06 --> 00:50:14 | consolidate sharp drop that it can do that. But this is the one you want to be entered on. Because if usually, if you miss this one, you're probably going to |
| 290 | 00:50:14 --> 00:50:27 | be chasing price. Now, what happens if you don't see this as your low risk short, and you see this as your low risk store? Where I had the first stage |
| 291 | 00:50:27 --> 00:50:35 | distribution, is that wrong? Now based on your present understanding, you're going to see it probably as this is the first stage of distribution to get |
| 292 | 00:50:35 --> 00:50:45 | short. And the smart money reversal was up here. Wonderful. You don't see a low wrist short here in the middle of that pdra. That's okay, that's experience. And |
| 293 | 00:50:45 --> 00:50:52 | I understand that you're not going to see everything that I had seen. And I'm making allowances for that, while I'm teaching it. So you might see this as |
| 294 | 00:50:52 --> 00:51:00 | your, your, your low risk sell, or short. And then this is your first stage distribution. So where would the second stage distribution being or |
| 295 | 00:51:00 --> 00:51:10 | redistribution be. And it's, in other words, instead of saying this one is your second stage redistribution, which means it's going to be the highest degree of |
| 296 | 00:51:10 --> 00:51:24 | speed, magnitude and impulsiveness to go lower, quicker. If it's not this one, and you've classified that as your first age distribution, and you're surprised |
| 297 | 00:51:24 --> 00:51:29 | with a sudden drop, and you're gonna be staying there like a deer in headlights thinking, what am I supposed to do this, this is going way fast, and I thought |
| 298 | 00:51:29 --> 00:51:38 | it was you're gonna be dazzled, because you're on side. And it's probably not scary to get out of the trade. And if you've never been trading with real money, |
| 299 | 00:51:38 --> 00:51:48 | you're going to experience that. Okay, it's a weird paradigm. But you have to press into that. If you notice, here, I've said that the boss side of the curve |
| 300 | 00:51:48 --> 00:51:59 | used in reverse in the sell side of the curve, meaning what? This down close candle is a bullish order block. So while we were going up, when it drops back |
| 301 | 00:51:59 --> 00:52:09 | down into this, it should be offering what support. So when we get to the other side of the curve, which is to the right of this imaginary line, which is |
| 302 | 00:52:09 --> 00:52:19 | divided by the highest high, where we anticipate anticipate seeing the market reverse, on the right side of the curve, that's the sell side. So anything on |
| 303 | 00:52:19 --> 00:52:29 | the right side of the curve that was offered as support, or as a discount array, needs to start acting as what a premium array or resistance? What's the low of |
| 304 | 00:52:29 --> 00:52:40 | that candle, draw it through? Where's the body stopping? It's respecting it. And then it's not just simply that bearish order block. It's not as simple as you |
| 305 | 00:52:40 --> 00:52:47 | want to think it is, folks, everybody out there trying to teach Autoblog theory, you have no idea what you're doing. That's why I'm writing the books, you have |
| 306 | 00:52:47 --> 00:52:59 | no idea, you've only been introduced to the idea. You're trying to use things that you're making up as you go along. We break lower same thing here by side of |
| 307 | 00:52:59 --> 00:53:06 | the curve used in reverse on the sell side of the curve, meaning what this down close candle, what was it a little shorter block on the buy side of the curve. |
| 308 | 00:53:06 --> 00:53:12 | But now we're on the left side of the curve where everything should be going lower. So what is going on here, two markets trading right back up to the button |
| 309 | 00:53:12 --> 00:53:23 | that that body, boom, that would be your second stage redistribution. If you looked at that as first stage, and this is the low risk short, Smartline |
| 310 | 00:53:23 --> 00:53:31 | reversal. And you didn't classify anything low risk, that would be your second stage redistribution. For me, that would be a pyramid entry. So I would have |
| 311 | 00:53:31 --> 00:53:42 | even more going short. And then we dropped down into written retaliation. 80% of the trade will come off. And I want to see, do we have the ability to get any |
| 312 | 00:53:42 --> 00:53:56 | deeper, I'm gonna see what goes lower deep retracement, and finding lower in here. So for the folks that want to know, this entire presentation was under the |
| 313 | 00:53:56 --> 00:54:11 | discussion of the British pound versus US dollar forex pair. All of these things here, folks, this occurs on every asset class. It's there all the time. Now, one |
| 314 | 00:54:11 --> 00:54:20 | of the wonderful elements that's not been discussed so far, but I mentioned the briefing and beginning of discussion is when everything with price is in |
| 315 | 00:54:20 --> 00:54:34 | agreement with time because time sets the stage, then price does the act of precision. So it's time and price. Look what's occurring here. On the 31st we |
| 316 | 00:54:34 --> 00:54:47 | have consolidation. We leave the consolidation come back in return to original consolidation. When does that occur? London Open rallies up right in here. We |
| 317 | 00:54:47 --> 00:55:00 | have an order block right there. And then we have what it rips into the buy side. Trading up into New York Open seven o'clock in the morning. There's your |
| 318 | 00:55:00 --> 00:55:13 | market reversal profile, part of a market maker sell model, time and price. Everything that was illustrated here now look what we're at. We're inside of the |
| 319 | 00:55:13 --> 00:55:29 | New York open kill zone, we have a breaker, we have a bearish order block. All within what the New York open kill zone. This is also optimal trade entry. Right |
| 320 | 00:55:29 --> 00:55:45 | there. This right here is model 2022. By side taken shift in market structure, fair value got go short as milestones go into this right here trading up into |
| 321 | 00:55:45 --> 00:55:56 | that that is the seven o'clock in the morning to nine o'clock in the morning, New York open kill zone silver bullet. Man, how many silver bullets I got a |
| 322 | 00:55:56 --> 00:56:05 | whole rack of the rules for Vegas are always forming folks, you have to understand what the narrative is in play for that session, or that operating |
| 323 | 00:56:05 --> 00:56:07 | time that you're using for your trading day. |
| 324 | 00:56:08 --> 00:56:19 | I'm using times of the day that have high intakes of volume where order flow is increasing. Its rapid, there's a lot of interest getting in the marketplace. So |
| 325 | 00:56:20 --> 00:56:27 | you frame what you want to trade you want to trade as little as an hour a day. Okay? If I told you that you want to trade a full kill zone two hours, three |
| 326 | 00:56:27 --> 00:56:37 | hours. Okay. I've told you that too. I can't trade New York. I gotta trade London. Okay, I told I told you we have a trade that all these things are there. |
| 327 | 00:56:37 --> 00:56:49 | Now, what did I teach you about the trading day in terms of the opposite end the range? If the whole idea was a run up, have a market reversal profile. And we |
| 328 | 00:56:49 --> 00:56:59 | have a market maker sell model here, this drop down below these relative equal lows here, what time can it arrive? When can it arrive at the target of reaching |
| 329 | 00:56:59 --> 00:57:15 | below that London clothes 10 o'clock to noon, New York local time. To 10 o'clock, to noon, friends and neighbors that's not random. At all part of the |
| 330 | 00:57:15 --> 00:57:22 | things I've talked about all throughout the teachings of this entire YouTube channel, you have to know more than just a couple of things that do the market |
| 331 | 00:57:22 --> 00:57:34 | maker sell model and buy models. So I've been very honored to be your mentor here. I've been honored to be a conduit to share all these things that I've |
| 332 | 00:57:34 --> 00:57:45 | collected and authored over the last 30 years. It's been a wonderful experience. I've been touched by so many of your students. I have been moved to tears for |
| 333 | 00:57:45 --> 00:57:56 | some of you with all the adoration and respect is shown to me and I'm so thankful for that. But like all things all good things must come to an end. And |
| 334 | 00:57:56 --> 00:58:08 | I'm married to a woman that demands more of my personal time, and social media. And mentoring has taken a great deal of that. So I want you all to know that it |
| 335 | 00:58:08 --> 00:58:20 | has been a pleasure to be able to be in this seat as a teacher as a role model for learning how to trade and read price action. I want you all to know that |
| 336 | 00:58:20 --> 00:58:31 | none of the content on this YouTube channel or my Twitter will be deleted. None of it will be augmented. And I wish you all nothing but success with it. Until I |
| 337 | 00:58:31 --> 00:58:35 | talk to you next time. Good luck and good trading |