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ICT YT - 2024-09-02 - Top Down Trade Review

Last modified by Drunk Monkey on 2024-09-08 11:48
1 00:00:10 --> 00:00:14 ICT: Welcome back, folks. All right, so we're gonna be doing a review on the
2 00:00:14 --> 00:00:22 video recorded Friday. I gave you both renditions of I gave you the sped up
3 00:00:22 --> 00:00:27 version, where I condensed over 90 minutes of trading down to eight minutes
4 00:00:27 --> 00:00:35 and 10 seconds. So it's there for for both of the category of student you are,
5 00:00:35 --> 00:00:39 if you're a real quick and you just don't have time to be you being diligent
6 00:00:39 --> 00:00:42 about it, and you're not here really, to properly learn. You can be entertained
7 00:00:42 --> 00:00:46 by watching the short, sped up version for the ones that want to really learn
8 00:00:46 --> 00:00:50 what it is I'm teaching you here. I provided you the entire recording so
9 00:00:50 --> 00:00:56 that way, nothing is hidden everything as it occurred at regular speed. You can
10 00:00:56 --> 00:01:01 watch the fluctuations of the 15 second chart and the one minute chart
11 00:01:01 --> 00:01:10 respectively. I'm going to go over what the pre trade analysis was okay, and
12 00:01:10 --> 00:01:14 I'll walk you through what I was observing and how everything should have
13 00:01:14 --> 00:01:18 panned out, in addition to what I was executing on, which is obviously very
14 00:01:18 --> 00:01:24 salient and clear on that 15 second chart. So everything that I was
15 00:01:24 --> 00:01:28 annotating on 15 second chart in addition to this. So I'm saving a great
16 00:01:28 --> 00:01:34 deal of extra stuff that I could make the video longer with. It's for those
17 00:01:34 --> 00:01:37 that want to study it. So that way you're going to compare and contrast
18 00:01:37 --> 00:01:40 what I'm showing you here. Have that also on your notes as you're watching
19 00:01:41 --> 00:01:46 that 15 second chart. If you take the levels I'm putting on here and you apply
20 00:01:46 --> 00:01:54 them to your chart, and you watched what I did on the Friday pm session, you will
21 00:01:54 --> 00:01:58 have a better view, better and a more comprehensive understanding about what
22 00:01:58 --> 00:02:04 it is I was doing. But this is the stuff that I tell you that is in my notepad
23 00:02:04 --> 00:02:10 next to me. I'm going to show you how I get the information and then how I use
24 00:02:10 --> 00:02:15 it, how I used it on Friday, and then once you have an understand what it's
25 00:02:15 --> 00:02:19 likely to draw to and how it should behave. Understanding, real order flow,
26 00:02:19 --> 00:02:23 institutional order flow, algorithmic, price, delivery, all those components
27 00:02:23 --> 00:02:30 meshing and coming together perfectly. You have something in the hands that are
28 00:02:30 --> 00:02:38 capable. It looks too good to be true. It looks too mesmerizing. It looks too
29 00:02:38 --> 00:02:49 perfect. And it's these types of trades that have garnered me the the label that
30 00:02:49 --> 00:02:54 has to be delayed data. And I take that as a great compliment. I love that. I
31 00:02:54 --> 00:03:00 absolutely love it, because if viewers are watching it, and I leave them with
32 00:03:00 --> 00:03:05 no doubt, like I show everything that's possible, showing you that it's not
33 00:03:05 --> 00:03:10 Market Replay, it's not delayed data. Everything's live. And for the folks
34 00:03:10 --> 00:03:14 that sit with me and watch me call out live price action, and every individual
35 00:03:14 --> 00:03:18 one minute candle and sub one minute candle and how it should behave and
36 00:03:18 --> 00:03:23 where it should draw to next, it's not hard to see the bridge is just the
37 00:03:23 --> 00:03:30 experience factor between what I'm executing and what I am teaching and
38 00:03:30 --> 00:03:34 when I showcase with real live tape reading in front of 10s of 1000s of
39 00:03:34 --> 00:03:38 people that are watching when I'm live streaming. All right, so I started with
40 00:03:38 --> 00:03:43 a weekly chart, and Caleb, this is kind of like where we're going to take you to
41 00:03:43 --> 00:03:48 the higher time frame. So this week we're teaching how to find the setups,
42 00:03:48 --> 00:03:52 where the setups will form. So this is going to kind of like ease into that,
43 00:03:53 --> 00:03:59 and then later tonight, I will have Caleb's first video on his channel. So
44 00:03:59 --> 00:04:04 I'm going to be putting content initially on his channel, so it gives
45 00:04:04 --> 00:04:08 him a basis on what he should be doing, because, admittedly, from what I shared
46 00:04:08 --> 00:04:12 so far, he needs a little bit more clarification on what he should be
47 00:04:12 --> 00:04:16 practicing and studying and how to annotate his charts. So I will be doing
48 00:04:16 --> 00:04:19 some of those things each day, kind of like along the same lines of what I'm
49 00:04:19 --> 00:04:23 showing you here as a top down analysis and annotation. You're welcome to use
50 00:04:23 --> 00:04:28 this one, okay, as a benchmark. Okay, but going forward, everything that is
51 00:04:28 --> 00:04:33 shown in the examples on Caleb's channel, it's better for you to go into
52 00:04:33 --> 00:04:35 your charts. And I know some of you don't have a lot of time. You're doing
53 00:04:35 --> 00:04:39 other things in the world, and you think that no one's going to know any
54 00:04:39 --> 00:04:44 different if you just screenshot my charts and or his, you're not saving
55 00:04:44 --> 00:04:51 time. You're actually elongating the learning curve, because it's these
56 00:04:51 --> 00:04:54 things that you should be doing in your own charts. And you don't know how long
57 00:04:54 --> 00:04:58 this is going to go on, and we could stop this at any time. So if you don't
58 00:04:58 --> 00:05:01 do in your own charts, you. You haven't really equipped yourself to do it
59 00:05:01 --> 00:05:07 without me or my son, and kind of that's the point of this, right? So you can do
60 00:05:07 --> 00:05:12 it on your own. So a weekly chart, if you see what we were doing here, we had
61 00:05:13 --> 00:05:19 traded up here the previous week, and this is obviously showing what was now
62 00:05:20 --> 00:05:25 last week's trading. So this hadn't formed yet right when we were trading in
63 00:05:25 --> 00:05:31 the close of the previous week. So assuming that we were looking at the
64 00:05:31 --> 00:05:38 market last Sunday at three o'clock in the afternoon, Eastern Time in us, this
65 00:05:38 --> 00:05:42 is what the chart would look like. It would have this wick here, down close
66 00:05:42 --> 00:05:50 candle, long, discount, wicked candle to up close, large, up close candle,
67 00:05:50 --> 00:05:55 smaller, up close candle. And then we didn't see this start trading. It okay,
68 00:05:55 --> 00:06:01 because the market starts trading and opens at 6pm Eastern time. So looking
69 00:06:01 --> 00:06:07 back through this price action, I expect price to go higher. I've indicated this
70 00:06:07 --> 00:06:15 for the entirety of the month of August, using the higher time frame. This wick
71 00:06:15 --> 00:06:22 here, we had closed prior to the week we just ended here, prior week, we closed
72 00:06:22 --> 00:06:28 here, which is above this wick. So if we're going to go back down into some
73 00:06:28 --> 00:06:37 kind of a discount, we can measure this candles high, that candles low, and get
74 00:06:37 --> 00:06:40 an approximation of where the midpoint is, or consequent encroachment, because
75 00:06:40 --> 00:06:48 this is a myth cell side of deficiency. But if I have a candle like this that
76 00:06:48 --> 00:06:56 makes part of the swing low, I want to incorporate that wick, and I want to
77 00:06:56 --> 00:07:02 leave some of this down here open. So how far can a retracement go? Well,
78 00:07:02 --> 00:07:09 theoretically, it could go down to this, candlesticks high, and that still would
79 00:07:09 --> 00:07:16 be permissible. It's likely, most likely. It's stronger, most bullish. Can
80 00:07:16 --> 00:07:21 I use any more adjectives that describe my my thought process here? I want it to
81 00:07:21 --> 00:07:29 stay inside of this wick, not go any lower than the opening that candle. Now
82 00:07:30 --> 00:07:35 we're trading down into this candlestick with last week's trading. So if we
83 00:07:35 --> 00:07:41 highlight that range here, I'm highlighting the candles high and the
84 00:07:41 --> 00:07:47 open, so the open of that candlestick and the high that is the entire range.
85 00:07:47 --> 00:07:52 So I'm treating it like a gap, just like this would be reasonably expected to see
86 00:07:52 --> 00:07:57 trade back down into it. But we aren't trading with myopic perspectives. We're
87 00:07:57 --> 00:08:01 looking for a very specific algorithmic principles that are going to repeat,
88 00:08:01 --> 00:08:06 that have to have some measure of logic behind them, otherwise you'll be trying
89 00:08:06 --> 00:08:11 to capture every little fluctuation into a imbalance or inefficiency, thinking it
90 00:08:11 --> 00:08:16 must close there. And that is the difference between what I teach and am
91 00:08:16 --> 00:08:19 actively teaching, versus everybody else there that thinks they understand
92 00:08:19 --> 00:08:28 imbalances. So the candlesticks wick here because we opened up here last
93 00:08:28 --> 00:08:35 week. That makes this wick a discount array, because it's below where we
94 00:08:35 --> 00:08:39 opened. So how far can it trade down? It can trade down to this. Candles open
95 00:08:39 --> 00:08:50 right here. So the entirety of that Wix range, this opening price is an order
96 00:08:50 --> 00:08:56 block because of every thing I just said. It's not just simply because of
97 00:08:56 --> 00:09:03 the down closed candle. Everything, a part of it. It's a swing low. We closed
98 00:09:03 --> 00:09:11 above we opened. We're above this wick, this imbalance. It'd be better if, what
99 00:09:11 --> 00:09:16 if it leaves the lower half open, so it can trade down into this wick here and
100 00:09:16 --> 00:09:20 touch the opening price, which it does efficiently. And it does go back past
101 00:09:20 --> 00:09:25 this a little bit, but not much. That is a mohawk. It's something that is not
102 00:09:25 --> 00:09:30 perfect, but it's something like your child just coloring outside the lines of
103 00:09:30 --> 00:09:33 the coloring book page. You're not going to reprimand them. You're not going to
104 00:09:33 --> 00:09:36 say, Look what you did wrong there. You're going to hang on your
105 00:09:36 --> 00:09:39 refrigerator. You're going to take it to work with you. I use this analogy all
106 00:09:39 --> 00:09:43 the time. So when the algorithm is repricing just outside the lines that
107 00:09:43 --> 00:09:48 you think would define perfect price delivery, you can't assume that
108 00:09:48 --> 00:09:52 something's broken. That's actually what you want to see. You want to see it made
109 00:09:52 --> 00:09:57 an attempt to get below and did it accelerate going lower? No. Okay, so
110 00:09:57 --> 00:10:00 with this framework here, we're going to start fleshing out. Some more
111 00:10:00 --> 00:10:06 information. So here's half of that wick. So that price is 19,440.50
112 00:10:08 --> 00:10:14 that is consequent encroachment of this wick. Can it trade below that? Yes, but
113 00:10:14 --> 00:10:18 if it does go below it, we need to start seeing some measure of immediate
114 00:10:18 --> 00:10:23 rejection. It needs to show strength. It needs to be able to quickly get out of
115 00:10:23 --> 00:10:30 that area and not lay around in there a lot, just it can go down below it, but
116 00:10:30 --> 00:10:36 it needs to reject it and start working towards the higher half of that wick, as
117 00:10:36 --> 00:10:42 we see here. So I'm drawing your attention into this. So while yes, we
118 00:10:42 --> 00:10:48 traded down to the opening of this weekly candle, we hit the order block.
119 00:10:49 --> 00:10:57 We went to the low of this wick when we opened up last Sunday. Traded down to
120 00:10:57 --> 00:11:02 it, but now my attention is here, inside of this portion of price action defined
121 00:11:02 --> 00:11:08 by this candlesticks high and the midpoint of this entire wick. So what
122 00:11:08 --> 00:11:14 I'm essentially saying is the bulk of what I intend to do trade wise, is going
123 00:11:14 --> 00:11:20 to be better suited in this blue shaded area. Even if I do get something on a
124 00:11:20 --> 00:11:25 long down here. That's fine, but it doesn't require me to absolutely get
125 00:11:25 --> 00:11:31 something down here. It gives you flexibility. Basically, the best trades
126 00:11:31 --> 00:11:34 will be down here, but the more opportunities will be up in this blue
127 00:11:34 --> 00:11:40 shaded area. Okay, it'll make more sense as we drop down. So these are all things
128 00:11:40 --> 00:11:48 that are expected. We want to see how we open up on Sunday. I never know where we
129 00:11:48 --> 00:11:52 open up on Sunday. No one is going to know where we're going to open up on
130 00:11:52 --> 00:11:57 Sunday, but that opening defines our new week. Opening gaps. So are we opening up
131 00:11:57 --> 00:12:03 a higher than when we closed the previous Friday, or are we opening lower
132 00:12:03 --> 00:12:08 than we would close the previous week's Friday, and that defines our new week
133 00:12:08 --> 00:12:13 opening gap. You don't define your new week opening gap on weekly charts. You
134 00:12:13 --> 00:12:18 don't do it on a daily chart. You deal with a one minute chart. Okay, so this
135 00:12:18 --> 00:12:24 wick shade area here, just keep that in mind. And that blue shaded trend line is
136 00:12:24 --> 00:12:29 that opening price on a opening price for a down closed candle on the weekly
137 00:12:29 --> 00:12:39 chart. All right, so now we're into a daily chart, and here this blue shaded
138 00:12:39 --> 00:12:46 area, that is where I want to be doing the book The bulk of my trading. If you
139 00:12:46 --> 00:12:50 can trade back down into that weekly order block, which is again defined by
140 00:12:50 --> 00:12:57 that blue line here, defining the order block from the weekly chart. It should
141 00:12:57 --> 00:13:02 go down there briefly, not do blocks and blocks and blocks and blocks and blocks
142 00:13:02 --> 00:13:06 of price action like this. It goes down, yes, and comes right back. That's
143 00:13:06 --> 00:13:10 exactly what you want. So on a higher Time Frame, that indicates that we
144 00:13:10 --> 00:13:14 potentially may be going higher, and until we start seeing evidence that it's
145 00:13:14 --> 00:13:20 not the case, then we stick to a mindset that's going to go higher. So we look
146 00:13:20 --> 00:13:24 for buy signals, preferably. Doesn't mean we can't look for shorts. It just
147 00:13:24 --> 00:13:29 means that the majority of our leverage should be allocated to longs and not to
148 00:13:29 --> 00:13:35 the shorts. So we have a buy sound and balance outside efficiency here. We'll
149 00:13:35 --> 00:13:39 comment down in a second. But this low here, watch this here. That low is
150 00:13:39 --> 00:13:52 19,100.50 so zero. That low is 19,001 40.25 that makes up a volume imbalance.
151 00:13:53 --> 00:13:58 So on the daily chart, again, you can keep track of my charts up here. It's
152 00:13:58 --> 00:14:01 the daily chart. So we have a volume imbalance. And I already know what
153 00:14:01 --> 00:14:04 you're thinking. I already know what your questions are going to be, and I
154 00:14:04 --> 00:14:08 know what you're asking right now. And you want to know, can you just talk
155 00:14:08 --> 00:14:14 about and I'm going to talk about it, trust me in a minute. Here is our buy
156 00:14:14 --> 00:14:19 side of balance, cell sign of efficiency. Here it's defined by the
157 00:14:19 --> 00:14:26 candles high. That candles low. So that makes this a fair value gap, and it's
158 00:14:26 --> 00:14:30 categorized as a buy side of balance, sell side and efficiency. It's buy side
159 00:14:30 --> 00:14:36 and bounce. It's inefficient in sell side, until we get this in this candle,
160 00:14:36 --> 00:14:42 then it's done both up or buy side delivery, which is simply the movement
161 00:14:42 --> 00:14:46 of the price going higher, and then sell side delivery, where price is offered to
162 00:14:46 --> 00:14:53 the downside to a previous imbalance and inefficient level, which is defined by
163 00:14:53 --> 00:14:59 the single candle right here. That is the high of the busy this is the low of
164 00:14:59 --> 00:15:03 the busy. It trades down to it to the order block. And how far can it go
165 00:15:03 --> 00:15:08 beyond that weekly order block price. Michael, well, look what the daily
166 00:15:08 --> 00:15:15 charts offering you have a volume imbalance right here. The market opens
167 00:15:15 --> 00:15:19 here on Friday, creating a volume imbalance there as well, which will
168 00:15:19 --> 00:15:24 comment in a moment. But it opens and trades right back down to the previous
169 00:15:24 --> 00:15:34 close. So this makes this a immediate rebalance, and then sends it higher. I
170 00:15:34 --> 00:15:38 promised, I told you I'd answer your question, why sometimes your chart looks
171 00:15:38 --> 00:15:42 like you have the settlement price toggled on on your daily chart, and then
172 00:15:42 --> 00:15:48 sometimes it's not. For the last time, I've said this a few times now since I
173 00:15:48 --> 00:15:54 started teaching about it, if you notice that the daily chart is showing that
174 00:15:54 --> 00:15:59 little blue, s, e, t, it's saying that your settlement price is being used on
175 00:15:59 --> 00:16:04 your daily chart right now. Notice that it's toggled blue. So my daily chart
176 00:16:04 --> 00:16:10 right now is blue, s, e, t, so it's toggled, okay. Notice that the volume
177 00:16:10 --> 00:16:15 and balance between this candles close this candle is open. That volume of
178 00:16:15 --> 00:16:19 balance is what I'm highlighting there. That volume of balance between this
179 00:16:19 --> 00:16:24 candle sticks open and this candlesticks closed. That's a volume imbalance. Okay,
180 00:16:24 --> 00:16:31 watch what happens when we look at it. When the this s, e, t is not toggled, so
181 00:16:31 --> 00:16:37 now it's black. So it looks like this. The volume imbalances go away. I've
182 00:16:37 --> 00:16:43 indicated this before. If there's any widening between the candlestick bodies.
183 00:16:44 --> 00:16:49 If I'm I'm toggling back and forth both I'm doing both settings. I'm toggling it
184 00:16:49 --> 00:16:56 on and I'm toggling it off. When it's not toggled and highlighted in blue,
185 00:16:56 --> 00:17:01 it'll look like s, e, t, in black, like you see down here. The volume imbalance
186 00:17:01 --> 00:17:13 disappear. And by contrast, now with it toggled on again, it's blue, the volume
187 00:17:13 --> 00:17:17 imbalances appear again. I want to be able to see if it looks like this at any
188 00:17:17 --> 00:17:21 time between the two choices, if I ever see a volume imbalance with one toggled
189 00:17:21 --> 00:17:27 on or off. I'm going to elect to use the one that has the volume imbalances. I
190 00:17:27 --> 00:17:31 want to see the separations, because that separation is going to highlight an
191 00:17:31 --> 00:17:36 imbalance or inefficiency. And I want to know what they are before trading view.
192 00:17:37 --> 00:17:40 I was looking for things like this anyway, and you can do them manually,
193 00:17:40 --> 00:17:44 like you literally can do it without having any requirement of toggling that
194 00:17:44 --> 00:17:49 settlement price being used on your daily chart or not. You're just looking
195 00:17:49 --> 00:17:54 at the the times that the candlesticks close versus the end of the trading. And
196 00:17:54 --> 00:17:59 then they get very plain if you're toggling your chart each day as soon as
197 00:17:59 --> 00:18:04 the day ends at five o'clock Eastern time, New York, local time. Go to your
198 00:18:04 --> 00:18:13 daily chart and show what it looks like when we close. When that candlestick
199 00:18:13 --> 00:18:18 closes, that's your levels. Toggle it back and forth and make sure that you
200 00:18:18 --> 00:18:22 see if there's any volume imbalances. If there's a volume imbalance, that's the
201 00:18:22 --> 00:18:26 setting I'm going to go with. If there is no volume imbalance, I'm not using
202 00:18:26 --> 00:18:34 that one. Okay, you'll see over time that that's what I'm doing. If you go
203 00:18:34 --> 00:18:38 back and look at old examples of me either giving analysis or treating
204 00:18:38 --> 00:18:42 unless there's something that is extremely much more important that I'm
205 00:18:42 --> 00:18:46 trading around without using that information, I'm usually using the logic
206 00:18:46 --> 00:18:54 of this shared here. Okay, so Tuesday's candle from last week here. That's what
207 00:18:54 --> 00:18:58 I'm highlighting. I want you to look at the low that candlestick right there.
208 00:18:58 --> 00:19:09 That low comes in at 19,004 41 1.50 now I taught that you have to start using
209 00:19:09 --> 00:19:15 old daily lows and old daily highs. You want to look back at the lows and the
210 00:19:15 --> 00:19:18 highs over the last three candles. So if we're going to trade on Friday, as you
211 00:19:18 --> 00:19:27 saw me do, here's Friday. Look back three days, Thursday, Wednesday,
212 00:19:27 --> 00:19:37 Tuesday. See what that does. It affords you several days to refer back to old
213 00:19:37 --> 00:19:42 levels. Now, when we're opening here, are we requiring any necessity around
214 00:19:43 --> 00:19:48 the high of the previous it can be used, yes, more closely
215 00:19:50 --> 00:19:57 related to the open on this Friday's trading to Tuesday's low. See that when
216 00:19:58 --> 00:20:03 we were trading here and we closed. Right here, before we opened up there.
217 00:20:04 --> 00:20:09 This indicates that what level are we looking at? Is it closer to the previous
218 00:20:09 --> 00:20:14 day's low? Are we settled here or Tuesday's low? So which one's going to
219 00:20:14 --> 00:20:20 be a more of a impactful price event, more likely to trade to basically,
220 00:20:20 --> 00:20:25 clearly, Tuesdays low. Okay. Now you can have all of the highs and the lows in
221 00:20:25 --> 00:20:30 the last three days indicated on your chart, and you'll watch how they
222 00:20:30 --> 00:20:35 gravitate towards them. Okay, but don't think for a second just because you have
223 00:20:35 --> 00:20:40 the last three days high and low toggled on and shown on your chart annotated,
224 00:20:40 --> 00:20:43 that it's going to be easy read for you to get to it, you're going to have to
225 00:20:43 --> 00:20:47 rely on other things I've taught. But if you do these things, you'll see Caleb
226 00:20:47 --> 00:20:52 that it goes right to the most obvious one. It'll go the path of least
227 00:20:52 --> 00:20:55 resistance, okay? And it's going to, many times, gravitate to these, these
228 00:20:55 --> 00:21:01 levels. The reason why these levels are important is because large institutions,
229 00:21:01 --> 00:21:06 banks, big conglomerates that have deeper pockets than you and I ever will,
230 00:21:06 --> 00:21:11 they have lots of orders that they intend to trade the market at those
231 00:21:11 --> 00:21:16 highs and lows because there's an enormous pool of liquidity around them.
232 00:21:17 --> 00:21:21 So if you use these levels predominantly in your trades or frame them as your
233 00:21:21 --> 00:21:26 trading model, or where it's going to draw to, you're going to have the best
234 00:21:26 --> 00:21:31 of the best type trades, the cream of the crop, the easiest ones that go real
235 00:21:31 --> 00:21:35 quick to these levels, and many times, they're going to perform with low
236 00:21:35 --> 00:21:39 resistance liquidity run signatures, meaning that they're going to be very
237 00:21:39 --> 00:21:43 easily traded to. They won't hem and haul, they won't consolidate a lot
238 00:21:43 --> 00:21:48 before they go to the level you're aiming for, because the intended purpose
239 00:21:48 --> 00:21:52 is the algorithm will reprice to these levels, because it understands that
240 00:21:52 --> 00:21:58 there's lots of buys and sells around them. It's not the buying and selling
241 00:21:58 --> 00:22:02 pressure that takes them to these levels, it's the fact that there's lots
242 00:22:02 --> 00:22:08 of pending orders below old lows and above old highs. So it doesn't need to
243 00:22:08 --> 00:22:11 know how many orders are resting there. It doesn't understand that, but it does
244 00:22:11 --> 00:22:17 know by its coding the drive into those price points quickly, not just drift
245 00:22:17 --> 00:22:21 down there and bleed down to it. Many times you'll see them accelerate
246 00:22:21 --> 00:22:24 quickly, and you'll see large range candles and jump right to the liquidity.
247 00:22:24 --> 00:22:28 So if you have these levels in mind as the basis for where the trading is going
248 00:22:28 --> 00:22:34 to reach to, or your setups are framed around, you're doing exactly as I'm
249 00:22:34 --> 00:22:38 teaching, because I'm trying to teach you to be a low resistance liquidity run
250 00:22:38 --> 00:22:44 trader that targets obvious, huge pools of liquidity, and your trades are more
251 00:22:44 --> 00:22:49 likely to see little resistance. And that's exactly what every trader wants.
252 00:22:49 --> 00:22:52 They want to see movement. They want to see speed. They want to get their
253 00:22:52 --> 00:22:55 targets hit and be done. Get out of the trade. You know, the longer your trade
254 00:22:55 --> 00:23:00 takes the pan out, the more mental capital you're expending. All right, so
255 00:23:00 --> 00:23:06 we have the volume imbalance here open trade down. The previous candle sticks
256 00:23:06 --> 00:23:13 close. That's immediate rebalance, and we're trading below Tuesday's daily low
257 00:23:13 --> 00:23:19 of this candle at 19,004 41 and a half. So just remember this level here, 19,441
258 00:23:20 --> 00:23:24 and a half. That's that low, right there. So think about what we've done.
259 00:23:24 --> 00:23:32 We have traded down, redelivered all of this inefficiency. So buy side imbalance
260 00:23:32 --> 00:23:38 has been balanced with a delivery of sell side. There's no longer an
261 00:23:38 --> 00:23:43 inefficiency with price not coming back to overlap all this up close candlestick
262 00:23:43 --> 00:23:48 between this candle is low and that candles high. It's delivered here. So
263 00:23:48 --> 00:23:55 when it leads, it leads what this candle is low, we're back above it here. It
264 00:23:55 --> 00:23:58 comes back down just to overlap this volume imbalance between this
265 00:23:58 --> 00:24:02 candlesticks closed and this candlesticks open. That blue shade
266 00:24:02 --> 00:24:08 varies with the volume imbalance. So it opens this day on Friday, trades down
267 00:24:08 --> 00:24:17 that's due to swing and then rallies up. So the price here that defines that buy,
268 00:24:17 --> 00:24:22 center, balance, cell sign, efficiency. Notice the high. It's 19,004 four, 7.50
269 00:24:24 --> 00:24:30 Tuesday's daily low is below that. So we're focusing primarily on Tuesday's
270 00:24:30 --> 00:24:37 low. Why? Because the daily lows in this instant is the most salient point to be
271 00:24:37 --> 00:24:41 watching with price. And I gave that level to you earlier in a week with this
272 00:24:41 --> 00:24:52 idea in mind. So these levels were in mind before the week started. Everything
273 00:24:52 --> 00:24:56 that's here until Tuesday's low was formed. I was referring to that
274 00:24:56 --> 00:25:01 candlesticks low, right there, and that candlesticks high, so. And that order
275 00:25:01 --> 00:25:06 block level and that volume imbalance, because these levels were in play, that
276 00:25:06 --> 00:25:10 means they were in the chart before we started trading on Sunday last week.
277 00:25:12 --> 00:25:17 That's why, when I tell you I have a notepad with levels on my chart, it's
278 00:25:17 --> 00:25:21 these levels here, then what I'm doing is I'm watching price real time, and I'm
279 00:25:21 --> 00:25:25 seeing where are we at real time in relationship to those price levels that
280 00:25:25 --> 00:25:29 I have on my notepad. You're used to seeing them on my chart. I prefer them
281 00:25:29 --> 00:25:33 not to be on my chart. I want my chart clean. But you while you're learning
282 00:25:33 --> 00:25:36 it's beneficial for you to have them on your chart. Caleb, it's not something
283 00:25:37 --> 00:25:40 that you probably will keep forever, or it might be. I don't want to talk you
284 00:25:40 --> 00:25:44 out of it, but if you think it's helpful to you by having them on the chart,
285 00:25:44 --> 00:25:53 then, by all means, keep them. And then this up close candle here is a bearish
286 00:25:53 --> 00:25:57 order block. It's a propulsion block, because we have the highest up close
287 00:25:57 --> 00:26:03 candle here, soon as we cross below it. The opening price there that makes this
288 00:26:03 --> 00:26:09 candle stick. Validation of that bearish order block the next candle we open
289 00:26:09 --> 00:26:16 trade up into this one so it does not completely close over top of this one,
290 00:26:16 --> 00:26:22 and the bodies don't close on this candle above midpoint of this higher
291 00:26:22 --> 00:26:27 order block that makes this a propulsion block. Propulsion blocks are explained
292 00:26:27 --> 00:26:33 in month four core content. You can find that in the 2016 ICT mentorship playlist
293 00:26:34 --> 00:26:40 for month four, there's a video lecture about propulsion blocks in that segment
294 00:26:40 --> 00:26:47 of the YouTube channel. So the opening of that candlestick is the bare shoulder
295 00:26:47 --> 00:26:51 block. So the propulsion block becomes a target while we're below it here, it's
296 00:26:51 --> 00:26:58 going to reach up into it. That's that's one right there. So we also had this
297 00:26:58 --> 00:27:04 wick here that you can break that down in quadrants in addition to so they're
298 00:27:04 --> 00:27:10 all potential targets. So again, as these individual new daily candlesticks
299 00:27:10 --> 00:27:15 form, you have new PD arrays that you have to incorporate. But starting with a
300 00:27:15 --> 00:27:20 higher Time Frame, weekly and daily from the previous week, you have key levels
301 00:27:20 --> 00:27:26 already that are useful. Notice that we're opening in the lower half, okay,
302 00:27:26 --> 00:27:30 the lower half of that larger weekly inefficiency. Remember, I cut the weekly
303 00:27:31 --> 00:27:37 wick and use the upper half of it. That's what that blue shaded box is
304 00:27:37 --> 00:27:40 here. Rewind the video, and you'll see what I'm talking about. The very, very
305 00:27:40 --> 00:27:44 very first thing I started talking about when we annotated the weekly chart. This
306 00:27:44 --> 00:27:50 is all of a weekly wick, because it's going up here and going right back down
307 00:27:51 --> 00:27:56 half of that wick. The upper half is what I'm going to be focusing primarily
308 00:27:56 --> 00:28:01 on, because there should be a lot of sensitivity on all discount arrays in
309 00:28:01 --> 00:28:05 this blue shaded area. If I'm really right on side, if I do believe we're
310 00:28:05 --> 00:28:11 going to go higher, the best buys that really punch, really deliver off of the
311 00:28:11 --> 00:28:15 discount arrays are going to be in this area here once we get back into it. I
312 00:28:15 --> 00:28:18 afforded the market to go down that far, but it needs to only go down there
313 00:28:18 --> 00:28:24 quickly, one, two days, bang up. Here we are. Okay. So let's continue on. We're
314 00:28:25 --> 00:28:28 dropping down to a 15 minute time frame you can keep track now over here, or
315 00:28:28 --> 00:28:33 watching the upper left hand corner. So here is the market activity, the levels
316 00:28:33 --> 00:28:39 I had annotated before I sat down last Friday, just passed at two o'clock, I
317 00:28:39 --> 00:28:43 was trading the pm session. I was trading a turtle soup setup, and I was
318 00:28:43 --> 00:28:51 looking for a rally higher and I wanted to see if we could reach up into the
319 00:28:51 --> 00:28:56 bear shorter block, which is what you see here, because it was a holiday
320 00:28:56 --> 00:29:00 Friday weekend. In other words, Friday wasn't a holiday, but we were going into
321 00:29:00 --> 00:29:03 a long weekend. So Monday, we have, in the United States, the Labor Day
322 00:29:03 --> 00:29:08 holiday. So that's going to impact volume. It's going to impact the the
323 00:29:08 --> 00:29:13 times that we trade. It'll cause a little bit of of a hiccup in cleanliness
324 00:29:13 --> 00:29:20 for price. So that's why I like to trade on Wednesday. So it gives me a day after
325 00:29:20 --> 00:29:24 the holiday on Monday, let the markets do whatever they want. I can miss a move
326 00:29:24 --> 00:29:27 that takes place on Tuesday. I don't care about that. And then Wednesday,
327 00:29:27 --> 00:29:30 we'll be back to the swing of things, where everything is normal. But what
328 00:29:30 --> 00:29:34 we're looking at here, we have 15 in a time frame everything that was on that
329 00:29:34 --> 00:29:36 previous daily chart, and one more time,
330 00:29:38 --> 00:29:44 this volume imbalance, and this volume imbalance, in this larger shaded blue
331 00:29:44 --> 00:29:50 area, those three reference points, okay, we'll see those here. Here's that
332 00:29:50 --> 00:29:55 larger shaded blue, the smaller volume of balance and the lowest volume
333 00:29:55 --> 00:30:01 imbalances over here. So we're watching price fry. The afternoon as it's dipping
334 00:30:01 --> 00:30:10 down here, I'm looking at how price traded below that low here. Rally back
335 00:30:10 --> 00:30:15 above, and we caused ourselves to see a breaker form. But I want to be trading
336 00:30:15 --> 00:30:22 at Tuesday's low or lower. Why? Because it's an all daily low. I can't get back
337 00:30:22 --> 00:30:27 to Thursday's daily low, but going back three days, that's Tuesday's low. That's
338 00:30:27 --> 00:30:32 why it's on my chart. So I want to be in there buying that. Let's zoom in a
339 00:30:32 --> 00:30:38 little bit, same chart 15 minute time frame. We have several things here. I
340 00:30:38 --> 00:30:41 want to take your attention to when we were dropping down here. Look real
341 00:30:41 --> 00:30:46 close. See that wick now? Come on, Michael, you're just picking things at
342 00:30:46 --> 00:30:52 random. Go back and listen to my live streams. I'm pulling out very specific
343 00:30:52 --> 00:30:59 things and the recordings I did with Twitter, which is now called X, but I
344 00:30:59 --> 00:31:04 just refuse to call it x the Twitter spaces I did where I would literally
345 00:31:04 --> 00:31:07 call out individual candlesticks, or I would tweet about individual
346 00:31:07 --> 00:31:11 candlesticks. So I'm taking your attention to very specific ones. Why am
347 00:31:11 --> 00:31:16 I selecting this one here? Because this one went down deeper than the previous
348 00:31:16 --> 00:31:21 one. See this one here? Yes, that's a wick, but this one did more damage. It
349 00:31:21 --> 00:31:26 went lower than this one. So I went a little bit lower into that daily volume
350 00:31:26 --> 00:31:35 imbalance. So when we start going higher, which we see it doing here, I
351 00:31:35 --> 00:31:40 want to see, does price drop back down into that Tuesday's daily low. And does
352 00:31:40 --> 00:31:47 it go lower? Yes, and I'm keying off of that consequent encroachment of this
353 00:31:47 --> 00:31:51 discount wick. Why is this wicked discount wick? Because price is up here,
354 00:31:51 --> 00:31:56 dropping back down into its range. That's what makes this a discount array.
355 00:31:57 --> 00:32:01 Look at the sensitivity of it. Look at how price delivered on Friday's trade,
356 00:32:01 --> 00:32:07 where I got in it. So I want you to be mindful of that, and we're going to walk
357 00:32:07 --> 00:32:13 through this entire thing here. Notice also, when this candlestick started
358 00:32:13 --> 00:32:19 trading right here, from this candle to the left, all of these candles were
359 00:32:19 --> 00:32:25 hiding nothing from you. Nothing was hidden from you. So from this low to
360 00:32:25 --> 00:32:30 this candles high, we have all of this range to work with. So now imagine
361 00:32:30 --> 00:32:35 you're a rock climber, and this is a sheer rock side that you have to climb
362 00:32:35 --> 00:32:43 up. What hand holds could you map out as you climb back up in price, which
363 00:32:43 --> 00:32:47 reference points here are you going to use, and then later, also expect to use
364 00:32:47 --> 00:32:51 as a foothold if you were a rock climber, and we're going to personify
365 00:32:51 --> 00:32:56 price as a rock climber, you okay, how is price going to use all of these
366 00:32:56 --> 00:33:04 candlesticks here To get back up to a level of significance, a premium price,
367 00:33:04 --> 00:33:10 a higher price, you need not get up to this high. You don't need it, but you
368 00:33:10 --> 00:33:16 can frame out something here using Tuesday's low. What would you use? I'm
369 00:33:16 --> 00:33:21 going to walk you through it now. Typical, buy sign and balance. Sell
370 00:33:21 --> 00:33:26 sign, efficiency. You efficiency framed by this candle high. This candle is low.
371 00:33:27 --> 00:33:32 We trade down into the consequent crochet of that wick, and we leave what
372 00:33:32 --> 00:33:37 open the lower portion, there's an opening left. See that we want to see
373 00:33:37 --> 00:33:44 that that is algorithmic. That's the hand at the card table being shown to
374 00:33:44 --> 00:33:47 you, saying, Here's my cards. That's what the algorithm is doing right there.
375 00:33:47 --> 00:33:51 That's not buying and selling pressure, okay? It's the algorithm indicating
376 00:33:51 --> 00:33:54 saying we're going to leave this inefficient because it's going to
377 00:33:54 --> 00:34:03 quickly run higher. This down closed candle once we overtook it there. That
378 00:34:03 --> 00:34:11 makes this a bullish order, block the price on that candle here we open we
379 00:34:11 --> 00:34:17 trade down to this. Candles opening price, the opening price of that down
380 00:34:17 --> 00:34:23 close candle here is 19,466.75 this candle, we open trade right down to it
381 00:34:23 --> 00:34:27 perfectly, to the tick, and then starts the rally. You can check that right here
382 00:34:28 --> 00:34:31 and see that that low of that candle, that's what I'm highlighting here.
383 00:34:31 --> 00:34:37 That's why you can see that candle 2:15pm, Friday, August 30, 2024, that
384 00:34:37 --> 00:34:43 candle, that low matches that opening price, and you see it there, okay, that
385 00:34:43 --> 00:34:48 is perfect. That's not buying and selling pressure. Okay, so we're seeing
386 00:34:48 --> 00:34:54 price deliver, and then boom, there's an over block respects. It sends price
387 00:34:54 --> 00:35:08 higher then we have. A fair value gap, same thing. Do we have that candles high
388 00:35:08 --> 00:35:14 to that candle low? Do we have the entire fair value gap closed in? No. Is
389 00:35:15 --> 00:35:20 it indicating that the markets want to go higher? Yes. So now from here, we
390 00:35:20 --> 00:35:23 have something higher than that we have to work with in in this range over here.
391 00:35:23 --> 00:35:30 What is it? Cell sign and balance bots out inefficiency. But because we're
392 00:35:30 --> 00:35:39 bullish, we're expecting this to be used as an inversion. There you got. So this
393 00:35:39 --> 00:35:46 is a Sibi that we expect to see become a bullish discount array. So the market's
394 00:35:46 --> 00:35:52 going to trade up into the higher portion of it trade back down hit the
395 00:35:52 --> 00:35:57 fair value gap. Do we see price going higher? Yes, and then comes right back
396 00:35:57 --> 00:36:03 down to what consequent encroachment, defined by that candles low, that
397 00:36:03 --> 00:36:08 candles high. What else is existing around consequent encroachment? What's
398 00:36:08 --> 00:36:12 this? The candle that opens and drops down into this Fairbank out here and
399 00:36:12 --> 00:36:17 sends price higher. What is that? Now, soon as this candle goes above this
400 00:36:17 --> 00:36:24 opening price, what does this candle trading above it indicate this is it's a
401 00:36:24 --> 00:36:29 bullish order block, but this drop down into it there is occurring in the upper
402 00:36:29 --> 00:36:36 half of this inefficiency. We want to see strong indications that it wants to
403 00:36:36 --> 00:36:39 repel away from any discount array in this area, because it's now becoming an
404 00:36:39 --> 00:36:45 inversion. So version. So we are not looking for or requiring it to get back
405 00:36:45 --> 00:36:50 down a little half again in here. It's already done that here. If it would have
406 00:36:50 --> 00:36:53 been straight through and came back down to there, that's the same thing I'd
407 00:36:53 --> 00:36:58 expect here. I wouldn't see it come back down here. I wouldn't require that huge,
408 00:36:58 --> 00:37:05 huge thing there for your notebook. I so we have bearish order block here in this
409 00:37:05 --> 00:37:10 price swing, the opening price. That's the the target you're reaching for when
410 00:37:10 --> 00:37:15 you're below it, and the market trades up to it here. Wonderful drops. Back
411 00:37:15 --> 00:37:19 down gives another opportunity to re accumulate around that order block
412 00:37:19 --> 00:37:24 there, and then trades up into a premium WIC consequence there, and ultimately up
413 00:37:24 --> 00:37:29 to the daily bearish order block, which is what I indicated when we're in daily
414 00:37:29 --> 00:37:36 chart. And there we have the delivery. So I want you to think about what is
415 00:37:36 --> 00:37:42 being shown here and re watch the long version of Friday's trade. Now I already
416 00:37:42 --> 00:37:47 know about 98% of you are not going to do that, and that's why there's going to
417 00:37:47 --> 00:37:51 be 98% of you that's going to feel like there's still something being hidden
418 00:37:51 --> 00:37:55 from you. ICT is hiding something from you. I'm not hiding anything. Everything
419 00:37:55 --> 00:38:00 I've used here in annotation was the logic that I was referring to in price
420 00:38:00 --> 00:38:06 action with my notes, I had all of these levels mapped out so as price would
421 00:38:06 --> 00:38:09 breach, the levels I needed to see breached, going higher. Everything that
422 00:38:09 --> 00:38:14 I'm annotating here were just simply numerical values written on my notepad.
423 00:38:15 --> 00:38:19 But again, like I said before, in the past, when I was on Twitter, I could
424 00:38:19 --> 00:38:26 show you my notepad, and it won't help you, because you have to sit in the
425 00:38:26 --> 00:38:31 charts with me to go through all the levels and why they're pertinent. That's
426 00:38:31 --> 00:38:37 why everybody that bought my leaked core content lessons in my old 2016 2017 2018
427 00:38:38 --> 00:38:43 2019 2000 22,021, mentorship videos. When you buy those videos, you're not
428 00:38:43 --> 00:38:47 learning it properly. Because you're you have to have me explaining it to you.
429 00:38:48 --> 00:38:53 It's just the language being introduced. That's why the people that buy those
430 00:38:53 --> 00:38:55 videos thinking they're gonna get the secret sauce.
431 00:38:55 --> 00:38:59 I'm doing the secret sauce right now. I'm doing it right now. This is
432 00:38:59 --> 00:39:03 mentorship. So I don't do private mentorships where you can buy into the
433 00:39:03 --> 00:39:09 to the group. Okay, that's that's gone. I'm teaching for free here, so when I
434 00:39:09 --> 00:39:14 have my notes in front of me, it's all of these levels here, all these as
435 00:39:14 --> 00:39:19 they're forming, I'm writing I'm writing them down my notepad. But there's also
436 00:39:19 --> 00:39:23 new PD arrays forming on that 15 second chart, and I want you to look at where
437 00:39:23 --> 00:39:28 they behave in your chart now. Obviously, if you watch this months from
438 00:39:28 --> 00:39:31 now, you're not going to have the advantage of doing it. You're going to
439 00:39:31 --> 00:39:35 have to really refer to the video that I recorded, which is why I gave you the
440 00:39:35 --> 00:39:42 long version of it. You can see it, it's clear, and you're you're encouraged to
441 00:39:42 --> 00:39:45 do it each time I show you an example. That's why there's no talking, that's
442 00:39:45 --> 00:39:50 why there's no music. It's just simply me showing you what I did. Then you go
443 00:39:50 --> 00:39:55 back through the price chart and you find all the PD arrays doing it like I'm
444 00:39:55 --> 00:40:02 showing you here. You're going to do this every single trading day. For the
445 00:40:02 --> 00:40:06 one market that you're following, not 12 markets, not 15 different forex pairs.
446 00:40:08 --> 00:40:11 You're looking for one market to follow while you're learning how to do what I'm
447 00:40:11 --> 00:40:15 teaching you to do, we're using one instrument. It's NASDAQ, but I don't
448 00:40:15 --> 00:40:19 trade NASDAQ. I don't care that you don't trade it. Everything that I'm
449 00:40:19 --> 00:40:24 teaching you works in everything else, but you have to stick with one thing.
450 00:40:24 --> 00:40:28 Keep your mindset. You're all hurrying to try to trade. You want me to talk
451 00:40:28 --> 00:40:33 about your favorite market. So that way you might have a hunch or an unction to
452 00:40:33 --> 00:40:36 be a buyer or seller, and you want me to confirm what you think might happen,
453 00:40:36 --> 00:40:39 then you're going to over leverage your account and you're going to lose and
454 00:40:39 --> 00:40:44 you're going to blame me because you did something wrong. So unless I tell you
455 00:40:44 --> 00:40:50 otherwise, everything I'm teaching you works in every asset class. So now we're
456 00:40:50 --> 00:40:55 dropping down to a five minute chart. We have a wick here. That's a discount wick
457 00:40:55 --> 00:40:59 when we're here. So when we drop down into that 15 minute Fairbank that let me
458 00:40:59 --> 00:41:04 go back up one more chart. That's this area right here on a 15 minute time
459 00:41:04 --> 00:41:07 frame. That's what this chart is. Here. We're going to go into that same area
460 00:41:07 --> 00:41:11 here on a five minute chart, but look at that wick right there. See what the
461 00:41:11 --> 00:41:15 bodies stop. So yeah, we drop down into that because there's a 15 minute fair
462 00:41:15 --> 00:41:18 value gap, which is why you have to constantly scroll through your time
463 00:41:18 --> 00:41:22 frames. Even if you have a laptop, you have to have these reference points,
464 00:41:24 --> 00:41:27 because if you don't, you won't be able to see how price is delivering,
465 00:41:27 --> 00:41:34 algorithmically and institutional price delivery. It's not as easy as you want
466 00:41:34 --> 00:41:39 it to be, clearly, but it takes time looking at it and taking screenshots
467 00:41:39 --> 00:41:42 like this. At the end of the end of the day, go back through your price charts.
468 00:41:42 --> 00:41:45 I'm going to be building my son's initial library with today's
469 00:41:45 --> 00:41:49 presentation or tonight's presentation, introducing his model conceptually. And
470 00:41:49 --> 00:41:52 then every day, I'm going to be revealing the market like this. So
471 00:41:52 --> 00:41:56 you're going to see annotations. I want him to get used to seeing these, because
472 00:41:56 --> 00:42:01 this is how I expect to see his charts. So he needs examples like this. So I'm
473 00:42:01 --> 00:42:06 showing it with my Friday trade, and then I will be doing it every single
474 00:42:06 --> 00:42:11 day, Monday through Friday, for, I don't know, maybe three or four weeks or so.
475 00:42:11 --> 00:42:18 And then we'll start seeing him. But it's giving you all and him a chance to
476 00:42:18 --> 00:42:20 see what it is that you should be annotating. And in beginning, you're
477 00:42:20 --> 00:42:26 going to miss some things that I'll have in my chart. You may have other things
478 00:42:26 --> 00:42:33 that is pertinent to your model. That's okay, but I'm showing you how you are
479 00:42:33 --> 00:42:36 going to graduate in your understanding you're going to get better at doing
480 00:42:36 --> 00:42:41 this. Because before you watch my review videos that's going to post on Caleb's
481 00:42:41 --> 00:42:46 channel. You should be doing this, and it'll allow you to check yourself.
482 00:42:47 --> 00:42:50 You're not sending me your charts. Please don't send them. I got people
483 00:42:50 --> 00:42:53 sending me stuff in email. I'm not going to look at your stuff because I don't
484 00:42:53 --> 00:42:56 have the time to do it. Imagine everybody doing this. You would never, I
485 00:42:56 --> 00:43:02 would never be able to get anything done. I do have a life. So on a five
486 00:43:02 --> 00:43:08 minute chart, you can see all the same levels being utilized here, and the
487 00:43:09 --> 00:43:14 consequent correction of this wick here, the bodies keep that at bay and
488 00:43:14 --> 00:43:19 everything here. Now the order block. So we went below the 15 minute order block,
489 00:43:19 --> 00:43:26 that little Mohawk outside of that upper portion of the cell center bound by
490 00:43:26 --> 00:43:32 signing efficiency, that Mohawk is simply just digging into that order
491 00:43:32 --> 00:43:36 block that you can see on a five minute chart. And we have a real nice delivery
492 00:43:36 --> 00:43:42 hire. My trade was closed here manually on that last one, and I was doing a lot
493 00:43:42 --> 00:43:45 of the things I taught earlier in the week last week, where I was showing you
494 00:43:45 --> 00:43:51 how, if you don't have to take partials, the easiest way for you to start getting
495 00:43:51 --> 00:43:57 better at it is simply trail up however many contracts you want to take off as a
496 00:43:57 --> 00:44:01 partial when it's trading in your direction, let the market come back and
497 00:44:01 --> 00:44:03 stop you out on that number of contracts, and you'll still leave a
498 00:44:03 --> 00:44:07 portion of the position open. I was doing that in Friday's trade. To kind of
499 00:44:07 --> 00:44:11 give you an illustration of it, I got a lot of feedback from that. People were
500 00:44:11 --> 00:44:14 like, Well, I'm glad you did that, because now it makes more sense. I can
501 00:44:14 --> 00:44:18 see it, and it's neat to see how it happens. But eventually you'll be
502 00:44:18 --> 00:44:21 watching when price is reaching for this level here, and you'll have your limit
503 00:44:21 --> 00:44:26 orders resting above levels like this order block that was on the 15 minute
504 00:44:26 --> 00:44:30 time frame. You'll have your orders resting up here in the premium constant
505 00:44:30 --> 00:44:36 encroachment of that wick on the 15 minute time frame. So as it reaches up
506 00:44:36 --> 00:44:41 to these extreme levels, that's where you'll be taking your partials. But
507 00:44:41 --> 00:44:46 until you get good at that, it's just better to have a trailing stop loss with
508 00:44:46 --> 00:44:50 a partial waiting for the market to kick you out. You won't get the higher exits.
509 00:44:50 --> 00:44:55 That's okay taking partials when it starts to turn back again on you the
510 00:44:55 --> 00:44:59 times that you do see it reverse entirely over top of what your existing
511 00:44:59 --> 00:45:03 open position. And still has open the fact that when it does that, you'll feel
512 00:45:03 --> 00:45:06 better that you did it, versus not knowing how to do partials at all and
513 00:45:06 --> 00:45:11 seeing a good trade turn into a losing trade. It's that's very demoralizing. So
514 00:45:11 --> 00:45:16 I'm, I'm coaching Caleb and coaching you that are watching on how you can manage
515 00:45:16 --> 00:45:21 all that stuff. Okay, whenever you have a real good runner open and you've made
516 00:45:21 --> 00:45:26 profit, never let it turn into a losing trade. Never, ever, ever, never, ever,
517 00:45:26 --> 00:45:32 ever. If you have a position that has 25 to 30 handles and open profit, that
518 00:45:32 --> 00:45:37 better never turn into a losing trade. It better never do that. So your stop
519 00:45:37 --> 00:45:43 should be covering costs by then and or you have managed a partial so that way,
520 00:45:43 --> 00:45:50 if you do get stopped out, it doesn't take away the net result, covering the
521 00:45:50 --> 00:45:55 costs, and there's no loss. So I'll leave that up to you with your math and
522 00:45:55 --> 00:46:00 what size of account you're trading with for that to work itself out. But this is
523 00:46:01 --> 00:46:05 the backdrop behind everything else that was being shown on that 15 second chart.
524 00:46:05 --> 00:46:09 Obviously, on the 15 second chart there's a lot more. PDA, raise, but I'm
525 00:46:09 --> 00:46:13 watching everything that I've shown here in relationship to this drop down here,
526 00:46:14 --> 00:46:20 all of that buying in that big blue shaded area. This is all part of being
527 00:46:20 --> 00:46:28 part of that larger weekly WIC, the upper half of it. And notice how it had
528 00:46:29 --> 00:46:33 real strong sensitivity off of every discount array, every single thing that
529 00:46:33 --> 00:46:37 would cause the market to go out, as I teach it, it used every single one of
530 00:46:37 --> 00:46:41 them. Not one of them failed. And the ones that were there, they many times
531 00:46:41 --> 00:46:44 indicate like it didn't close in that entire fair value gap. That's exactly
532 00:46:44 --> 00:46:48 what you want. That's exactly what you want. It didn't even get down to mean
533 00:46:48 --> 00:46:52 threshold of the order blocks. That's exactly what you want. It's showing
534 00:46:52 --> 00:46:55 every indication that this thing's going to go higher, and it's really being
535 00:46:55 --> 00:47:06 driven hard. So all these targets should be met easily, and we have it. And
536 00:47:08 --> 00:47:14 finally, we have our last chart here, and I have an error on here. It's
537 00:47:14 --> 00:47:17 driving me nuts here, but we're going to show how Michael's begin getting better
538 00:47:17 --> 00:47:21 with his obsessive compulsive disorder. It is not a five minute chart. Check
539 00:47:21 --> 00:47:25 yourself up here. It's one minute. Okay. You can see all the delivery here, the
540 00:47:25 --> 00:47:31 immediate rebalance, the daily volume and balance we rallied up the fair value
541 00:47:31 --> 00:47:36 gap. Go back through the higher time frames, and then when we drop down into
542 00:47:36 --> 00:47:41 that right there, when I'm buying that, it's occurring between 150 and 210,
543 00:47:41 --> 00:47:47 macro. Look at that beautiful delivery right there. Boom, right below two
544 00:47:47 --> 00:47:55 o'clock route in here, we have an order block opening. Price hits it. That's one
545 00:47:56 --> 00:48:04 that could be utilized here. That's one also at the top of the fair value gap
546 00:48:04 --> 00:48:11 that's shaded in green. That's another entry. We have a fair value gap right
547 00:48:11 --> 00:48:17 there, and order block hits it. That could be another entry for you. This is
548 00:48:17 --> 00:48:19 again, all in the one minute chart.
549 00:48:19 --> 00:48:23 And then we had the order block here that was on a higher Time Frame chart.
550 00:48:23 --> 00:48:29 And then price rallies up. We trade through the 15 minute fare bag that we
551 00:48:29 --> 00:48:32 formed that we dropped down again. You can see how we leave the lower portion
552 00:48:32 --> 00:48:37 open, and we drop down a little bit in the 250, to 310 macro. And it's just a
553 00:48:37 --> 00:48:41 time when the market will spool and run for liquidity. What is it reaching for?
554 00:48:42 --> 00:48:46 Trail, stop losses below relatively close and into an inefficiency, fair
555 00:48:46 --> 00:48:50 value gap on a 15 minute time frame, when you drop down your lower time frame
556 00:48:50 --> 00:48:54 charts and annotating, it's real important that you indicate what time
557 00:48:54 --> 00:48:59 frame these arrays are like. This is the daily volume of bounce y because I can
558 00:48:59 --> 00:49:02 tell right here with the label, if you don't label your PDA, raise from the
559 00:49:02 --> 00:49:07 higher time frame when you're working your way down, you won't you won't have
560 00:49:07 --> 00:49:10 the understanding when you look back at them months or weeks later, because
561 00:49:11 --> 00:49:15 you're going to refer to these things and study how price behaves, and you're
562 00:49:15 --> 00:49:20 also using them on a day by day basis. So you're going to refer back to certain
563 00:49:20 --> 00:49:27 things and certain times of the day. So the market rallies and 315, to 345, we
564 00:49:29 --> 00:49:34 had the market drop back down into a 15 minute rule of shoulder block. And then
565 00:49:34 --> 00:49:41 we have the order block here rallies during the market on clothes macro,
566 00:49:41 --> 00:49:45 which is 345, to four o'clock. And then we have the settlement macro, which is
567 00:49:45 --> 00:49:50 the last 10 minutes, which is 350, to four o'clock. And there's your macros
568 00:49:50 --> 00:49:54 for the people that want to know what they are in the last hour. That's what
569 00:49:54 --> 00:49:57 they are. Last hours trading, three o'clock to four o'clock. That's what
570 00:49:57 --> 00:50:02 these are. Okay? And the market starts. Spool aggressively. It trades into the
571 00:50:02 --> 00:50:06 premium wick, consequent crochet, and then the daily bear, shorter walk,
572 00:50:06 --> 00:50:11 delivering beautifully there. So that's the business. That's the markup. And you
573 00:50:11 --> 00:50:18 want to use everything that I have here, and go back through the chart that I was
574 00:50:18 --> 00:50:24 using on the 15 second chart, use the video at the original regular pace.
575 00:50:25 --> 00:50:29 Watch when I'm annotating on the 15 second chart. Everything that's shown
576 00:50:29 --> 00:50:35 here is in support of that. So I'm working from a higher time frame down to
577 00:50:35 --> 00:50:39 a lower time frame. That's the price delivery continuum theory, using the
578 00:50:39 --> 00:50:43 order flow from the higher time frames. How everything should support itself.
579 00:50:43 --> 00:50:47 Discount arrays should send price higher. They should be breaking through
580 00:50:48 --> 00:50:52 premium arrays. Premium arrays should not be offering any resistance when
581 00:50:52 --> 00:50:58 you're bullish. Discount arrays should not see their halfway points traded to
582 00:50:58 --> 00:51:02 ideally. That means bullish order blocks should not even see their mean
583 00:51:02 --> 00:51:08 thresholds be traded to fair value. Gaps or inefficiencies should see the market
584 00:51:08 --> 00:51:12 leave the lower portion of these inefficiencies open. It can close, but
585 00:51:12 --> 00:51:15 as soon as they get down to the lower end of it, they got to immediately
586 00:51:15 --> 00:51:18 reject out of that and come out of it quickly. They cannot be spending a lot
587 00:51:18 --> 00:51:22 of time inside them. That's institutional order flow. That's how you
588 00:51:22 --> 00:51:25 read it. You don't need depth of market. You don't need all the mechanics of
589 00:51:25 --> 00:51:31 having volume bars horizontally on your chart. You don't need V wop. You don't
590 00:51:31 --> 00:51:35 need any of those gimmicks. Okay, everything is happening because of time,
591 00:51:35 --> 00:51:39 clearly, as you can see here, and price I'm telling you what the PDA rates are
592 00:51:39 --> 00:51:42 going to be. So that's the price aspect the time that the market's going to
593 00:51:42 --> 00:51:47 behave a certain way. That's what I'm indicating here. Okay, so hopefully you
594 00:51:47 --> 00:51:50 found this one insightful, and I will talk to you again later tonight on
595 00:51:50 --> 00:51:50 Caleb's channel. You.