ICT YT - 2024-09-09 - ICT Tutelage Journal Log Sep 6 2024

Last modified by Drunk Monkey on 2024-09-11 12:21
1 00:00:00 --> 00:00:20 ICT: All right. Caleb, this is your weekly chart of NASDAQ, okay. Want you
2 00:00:20 --> 00:00:26 to take a look at this candlesticks low here to this candlesticks high, as we
3 00:00:26 --> 00:00:33 ran above, dropped lower. That is a inversion, fair value gap, an old weekly
4 00:00:33 --> 00:00:37 low at the time of analysis during the weekend. So we have not started trading
5 00:00:37 --> 00:00:43 for Sunday's new week opening. So we have one week that we just closed, so
6 00:00:43 --> 00:00:52 you have to look back, 123, there, that old weekly low is being annotated here.
7 00:00:53 --> 00:00:57 You would know about these lows anyway, weekly highs and lows that should always
8 00:00:57 --> 00:01:03 be a level into like previous highs and lows, they should be also factored in on
9 00:01:03 --> 00:01:07 your chart, or at least the very minimum in a notepad next to your trading area.
10 00:01:10 --> 00:01:16 This volume of balance here, this volume and balance, you'll see that it doesn't
11 00:01:16 --> 00:01:21 completely touch that. I'll explain that in a second. And this one here, notice
12 00:01:21 --> 00:01:27 the setting in the lower right hand corner. I'm annotating the chart showing
13 00:01:28 --> 00:01:37 these three by contrast. These are weekly volume imbalances. There are
14 00:01:37 --> 00:01:41 potential downside objectives. We have this wick here. It doesn't look like
15 00:01:41 --> 00:01:45 it's attached, but I wanted to move it away to see if I can clean this little
16 00:01:45 --> 00:01:51 area up. And then this weekly discount WIC consequence encroachment is here. So
17 00:01:51 --> 00:01:56 I'm looking at this wick half of that. So drop a fib, the 50% level. That's
18 00:01:56 --> 00:02:01 what's been annotated there. And this one is this wick, and then we have the
19 00:02:01 --> 00:02:06 weekly relative equal lows. It's sell side liquidity pool. Now with the
20 00:02:06 --> 00:02:12 settlement toggled again, you can see that that volume imbalance is much more
21 00:02:12 --> 00:02:16 cleaner. That's what these are matching in there. So which 1am I using, the one
22 00:02:16 --> 00:02:21 that has the narrow separations and gaps, or the one that has the widest.
23 00:02:21 --> 00:02:27 This one here the one that has the widest. Okay, so it makes it easier to
24 00:02:27 --> 00:02:31 understand what you want. I'm doing. I'm sticking to the same logic I gave you
25 00:02:31 --> 00:02:37 initially. When you're looking at the high time frame charts, the SCT, that
26 00:02:37 --> 00:02:42 settlement price toggling option where you can use the selling price for your
27 00:02:42 --> 00:02:49 clothes on the candlestick, always elect to go with the one that has the wider
28 00:02:49 --> 00:02:55 separations between the bodies, if it has that, versus something that may show
29 00:02:55 --> 00:02:59 no volume and balance at all, because there's sometimes it's like that, I will
30 00:02:59 --> 00:03:04 always elect to Use the one that shows the volume imbalances. Okay, all right,
31 00:03:04 --> 00:03:09 moving down into a daily time frame, that weekly inversion, pair value gap is
32 00:03:09 --> 00:03:14 transposed here, anchored to that. Candlesticks low there, and we have a
33 00:03:14 --> 00:03:20 bearish order block, and it's also the high of this pair value gap. Go back and
34 00:03:20 --> 00:03:25 look at the review on Friday's live stream where I cover the trade that I
35 00:03:25 --> 00:03:31 took nailing the high on Thursday down into the daily volume imbalance, which
36 00:03:31 --> 00:03:34 is here we don't need to look at that anymore. That's all part of the old
37 00:03:34 --> 00:03:37 data. I'm not showing any new week opening gaps or New Day opening gaps on
38 00:03:37 --> 00:03:43 this chart or any of these charts. It's your task to have those included on
39 00:03:43 --> 00:03:47 there. I want to keep the chart pertinent to these specific levels I'm
40 00:03:47 --> 00:03:54 sharing. Going into a new week, we have a daily volume imbalance here, and it's
41 00:03:54 --> 00:03:59 anchored on August 13, 2024 whenever you're annotating your chart, Caleb, the
42 00:03:59 --> 00:04:06 day that creates the candle to the right that forms a PD array. For instance,
43 00:04:06 --> 00:04:11 this candlestick here, that body and close, compared to the next candle here,
44 00:04:11 --> 00:04:17 where it opens. That candle is the date that you anchor to, just like when we do
45 00:04:17 --> 00:04:25 a new week opening gap you're using the Sunday's date to label that okay, that
46 00:04:25 --> 00:04:30 gap for new week, opening gap New Day opening gaps are always going to be
47 00:04:30 --> 00:04:33 referred to the next day because we're on the east coast of the United States.
48 00:04:33 --> 00:04:39 So while it's being formed at 6pm New York, local time, after that one hour
49 00:04:39 --> 00:04:46 break between 5pm eastern time to 6pm Eastern Time. The 6pm is still
50 00:04:46 --> 00:04:54 technically inside of the the date or the day of the week, but we're referring
51 00:04:54 --> 00:05:01 it to the date and the day name after midnight. You. New York local time. So
52 00:05:01 --> 00:05:04 in other words, it's always going to be counting tomorrow as the labeling for
53 00:05:04 --> 00:05:10 New Day opening gap. But everything else is self explanatory. And again, the new
54 00:05:10 --> 00:05:14 week opening gap. Here, you can see how we came down and hit that here, small,
55 00:05:14 --> 00:05:18 little coloring outside the lines there. And now we have, now this is going to be
56 00:05:18 --> 00:05:24 a old weekly low. That means it's last week's low and that previous old weekly
57 00:05:24 --> 00:05:28 low there. Now you can label these by date. I'm going to let you have that
58 00:05:28 --> 00:05:32 discretion to determine how you're going to label it. May want to use a numeric
59 00:05:32 --> 00:05:36 format like this, or you may have to type it all out if you if you want it
60 00:05:36 --> 00:05:42 that way. But the next one is this weekly volume imbalance down here, and
61 00:05:44 --> 00:05:47 I'm not adding it here, but I want to show it to you. You want to get the
62 00:05:47 --> 00:05:51 measurement on here, and it's consequent encroachment, so kind of close to that
63 00:05:51 --> 00:05:57 weekly volume and balance level. So this is your imbalance, but anchor that also
64 00:05:57 --> 00:06:02 with the real price level of this premium wick. It's midpoint or
65 00:06:02 --> 00:06:10 consequent encroachment, and then we have this wick here is essentially that
66 00:06:10 --> 00:06:16 low. You can test that out. Okay, it's by one tick or so off. So you can just
67 00:06:16 --> 00:06:19 eyeball that. That's what I do when I when I refer to wicks like this, if I
68 00:06:19 --> 00:06:25 see a candlesticks low, then I know that that Wix midpoint has been used here, so
69 00:06:25 --> 00:06:29 I look at that low as now a key cell side, liquidity pool.
70 00:06:35 --> 00:06:40 All right, moving into a 15 minute time frame, see the bear, shorter block,
71 00:06:41 --> 00:06:46 bearish, fair value got high and low. Bear, shorter block here, hitting that
72 00:06:47 --> 00:06:51 this inefficiency here, I mentioned this in the live stream on Non Farm Payroll
73 00:06:51 --> 00:06:59 Friday, and end up making the turn in here after taking primary buy side and
74 00:06:59 --> 00:07:03 primary sell side, which was given during the Non Farm Payroll live stream.
75 00:07:05 --> 00:07:10 Market breaks into that weekly inversion, fair value gap. Notice that
76 00:07:10 --> 00:07:13 the candle opens here, trades up to the top of that inversion. Fair value gap
77 00:07:13 --> 00:07:20 breaks lower. We have a discount wick consequent encroachment price on this
78 00:07:20 --> 00:07:25 candlestick here, open trade it up and it failed to get back to Thursday's
79 00:07:25 --> 00:07:30 daily low. So we're looking at previous days low, which is here. This is
80 00:07:30 --> 00:07:36 Friday's price action over here. I have the daily delineated vertically with
81 00:07:37 --> 00:07:41 midnight New York local time. So here's Thursday's low. So we traded through it
82 00:07:41 --> 00:07:47 here. All of this is nonprofit payroll, which is highly manipulated, trades up
83 00:07:47 --> 00:07:51 into a bearish, fair value gap, which is a city on a 15 minute time frame. That's
84 00:07:51 --> 00:07:57 the time frame we're on right now, Caleb, and then we break lower, we fail
85 00:07:57 --> 00:08:01 to get to Thursday's daily low here, and we didn't get up to the discount Wix,
86 00:08:01 --> 00:08:05 consequent encroachment. So that means we're decidedly weak. Then we have also
87 00:08:05 --> 00:08:08 the bearish order block, which are these two consecutive, or, I'm sorry, three
88 00:08:08 --> 00:08:12 consecutive. I'll close candles the opening price. That's the change in the
89 00:08:12 --> 00:08:16 state of delivery. It trades to that breaks down. We have a discount wick,
90 00:08:16 --> 00:08:20 consequent encroachment. Midpoint of the measurement between this candle sticks
91 00:08:20 --> 00:08:23 open and that candle sticks low. That's what's being measured. Okay? Being
92 00:08:23 --> 00:08:27 measured. Okay, extend that forward. We open on this candle, trade up and then
93 00:08:27 --> 00:08:34 break lower, attacking the primary sell side, liquidity, trading down into the
94 00:08:34 --> 00:08:38 daily volume imbalance on August 13, 2024 you find that information on the
95 00:08:38 --> 00:08:43 daily chart. And then we created a city here. This is a bearish fair value gap.
96 00:08:43 --> 00:08:47 Classification is Southside imbalance by sign and efficiency as labeled here, and
97 00:08:47 --> 00:08:51 it's anchored to what time frame, the 15 minute time frame. So when you're doing
98 00:08:51 --> 00:08:54 your annotations, Caleb, you need to manage them with these little, tiny,
99 00:08:54 --> 00:09:00 little reference points, just like w here means that it's a weekly inversion
100 00:09:00 --> 00:09:03 fair value gap. So it keeps your charts very organized. You'll be able to see
101 00:09:03 --> 00:09:07 what reference points are pertinent, and I'm going to teach you how that is
102 00:09:07 --> 00:09:14 important for watching institutional order flow and tracking the price
103 00:09:14 --> 00:09:21 delivery continuum theory. We have a WIC here. It's a premium WIC. So that would
104 00:09:21 --> 00:09:27 be a consequent encroachment level there. But because we've had this gap,
105 00:09:29 --> 00:09:33 this running back up into the daily volume imbalance, and in leaving that, I
106 00:09:33 --> 00:09:39 would never expect that mid wick to ever be traded to again, because we have this
107 00:09:39 --> 00:09:44 one, and then we have this one here, which is technically immediate
108 00:09:44 --> 00:09:48 rebalance. So immediate rebalances, we don't like to see a consequent
109 00:09:48 --> 00:09:51 encroachment if it's done on basis of a wick like it does here. So that's for
110 00:09:51 --> 00:09:55 your notes. It'll also be more details about that in the books, but very fair
111 00:09:55 --> 00:09:59 value. Gap cell sign bound spots on efficiency, 15 minute time frame breaks
112 00:09:59 --> 00:10:06 lower. Trades, trades to a discount WIC consequent encroachment and a discount
113 00:10:06 --> 00:10:11 wick contour encroachment on these dates. Okay, so their daily time frame
114 00:10:13 --> 00:10:17 bear shorter block. We trade up into that here, and then we have again,
115 00:10:17 --> 00:10:23 premium WIC consequent encroachment, which is this wick there, and then we
116 00:10:23 --> 00:10:28 break lower into the weekly volume and balance. And then now that is the low of
117 00:10:28 --> 00:10:34 the week. So that will be factored in as a array for next week's trading, which
118 00:10:34 --> 00:10:39 is simply going to be previous week's low. Over here we had the high up
119 00:10:39 --> 00:10:44 Thursday, which is here, you can see that anchored to that and then
120 00:10:44 --> 00:10:51 Thursday's daily low. Here, the best or optimal shorts, when you're bearish, are
121 00:10:51 --> 00:10:58 going to form in the lower half or lower 50% of the previous day's range. That's
122 00:10:58 --> 00:11:02 this level here, 18,009 70.75 and the high of that candlestick comes in at
123 00:11:02 --> 00:11:07 18,009 72.25 really, really close to that. But the it's only done on the
124 00:11:07 --> 00:11:11 basis of a wick. Notice that the bodies are staying down here towards the low
125 00:11:11 --> 00:11:16 end of what that bearish fair value gap that I annotated live in the live stream
126 00:11:16 --> 00:11:21 on not from payroll. So that's indicating that it's, it's heavy. So
127 00:11:21 --> 00:11:26 again, lower half of the previous day's range. When you're bearish, that's what
128 00:11:26 --> 00:11:35 your best shorts are going to form. Five minute chart, all the details from the
129 00:11:35 --> 00:11:40 15 minute typing are transposed here. Now we have at the top end of that
130 00:11:40 --> 00:11:44 weekly inversion fair value gap. We have the first presentation of a bearish fair
131 00:11:44 --> 00:11:48 value gap right here. Look at the beautiful delivery. Here we open trade
132 00:11:48 --> 00:11:55 right up to the top of the inversion fair value gap into that first fair
133 00:11:55 --> 00:12:00 value gap formed between 930 and 10 o'clock. You can't use 930 as the
134 00:12:00 --> 00:12:05 imbalance candle. So it has to be 931, minimum, and the market trades
135 00:12:05 --> 00:12:10 aggressively lower. Here's another inversion, fair value gap. It's bearish,
136 00:12:10 --> 00:12:14 and then we break lower, we open on this candle, trade up into the bearish order
137 00:12:14 --> 00:12:18 block right there. But it's also the low, the inversion, fair value gap. So
138 00:12:18 --> 00:12:22 there's, there's several factors there, and that's why you're seeing that
139 00:12:22 --> 00:12:26 sensitivity, the brakes lower. And then we have small little gap in here. The
140 00:12:26 --> 00:12:31 wicks trade through the bearish 15 minute order block. See how, right away,
141 00:12:31 --> 00:12:36 the labels help you. So now, when we're watching, say, for instance, a five
142 00:12:36 --> 00:12:41 minute chart, I'm looking at these levels knowing that they're on a higher
143 00:12:41 --> 00:12:46 time frame. So that means I'm allowing and affording price, the luxury of
144 00:12:46 --> 00:12:52 trading through the shorter term, five minute levels that appear here,
145 00:12:52 --> 00:12:57 expecting the higher Time Frame. PDA, raise that like the 15 minute time frame
146 00:12:57 --> 00:13:02 here, or the daily or the weekly ones, they're going to respect those levels on
147 00:13:02 --> 00:13:12 the lower time frame, more subordinately than looking at the lower time frame
148 00:13:12 --> 00:13:16 five minute PD arrays of five minute PD arrays that form in this time frame when
149 00:13:16 --> 00:13:20 this time frame is being five Minute, they can color outside the lines,
150 00:13:21 --> 00:13:26 whereas I expect the higher Time Frame, 15 minute, daily and weekly, like we see
151 00:13:26 --> 00:13:34 here, it just goes right to the top and it immediately breaks lower. The 15
152 00:13:34 --> 00:13:40 minute time frame, discount wick, constant encroachment here, it trades up
153 00:13:40 --> 00:13:43 to it just goes above it by a little bit. But it's really, what's it doing?
154 00:13:43 --> 00:13:47 It's reaching into a bearish five minute order block, the opening price of this
155 00:13:47 --> 00:13:51 up close candle and the low of this five minute inversion fair value gap. What
156 00:13:52 --> 00:13:55 makes this inversion fair value got because all the details about this
157 00:13:55 --> 00:13:59 supposedly failing to go higher, and then we get that confirmation when it
158 00:13:59 --> 00:14:04 goes lower, when it overlaps this dropping lower, we expect that range to
159 00:14:04 --> 00:14:10 act as a point of shorting. So it's a premium array, and we can see that with
160 00:14:10 --> 00:14:13 the body. See the body staying inside that inversion fair value gap. These are
161 00:14:13 --> 00:14:18 all signatures Caleb that tell you that what you're watching in terms of a PD
162 00:14:18 --> 00:14:24 array, it's there. It's verifying and validating select points of reference
163 00:14:24 --> 00:14:29 that I'm teaching you with the PD arrays. And we have a discount WIC on
164 00:14:29 --> 00:14:33 the 15 minute time frame. We trade through that and attack the primary sell
165 00:14:33 --> 00:14:38 side liquidity, digging down into the daily volume imbalance on the 13th of
166 00:14:38 --> 00:14:43 August. And then we have that 15 minute time frame fair value gap city. It
167 00:14:43 --> 00:14:48 trades up into the upper quadrant of that daily volume imbalance, that blue
168 00:14:48 --> 00:14:54 shaded area here, and it allows price to trade up into that and covers that tiny
169 00:14:54 --> 00:14:57 little gap right there that I don't want to add, but you can do it on your own
170 00:14:57 --> 00:15:03 chart. Then we have the. The market creating another bearish fair value gap
171 00:15:03 --> 00:15:09 here, after it creates this wick. So this one here, it goes up into this five
172 00:15:09 --> 00:15:13 minute fair value gap. It could have went all the way up to the halfway point
173 00:15:13 --> 00:15:19 of this wick, and the midpoint of this 15 minute time frame fair value gap
174 00:15:19 --> 00:15:23 that's labeled, as you can see here, and then markets are showing what with the
175 00:15:23 --> 00:15:27 bodies, the wicks are doing the damage. So while we're watching the market say
176 00:15:27 --> 00:15:32 you're short up here, using the first fair value guy, you could be holding
177 00:15:32 --> 00:15:37 this but you can't have a stop close to this high. You got to wait for price to
178 00:15:37 --> 00:15:40 prove to you by the candlesticks closing, the bodies are staying well
179 00:15:40 --> 00:15:47 below several time frame PD arrays. So that's how we manage, or have beginning
180 00:15:47 --> 00:15:52 foundations to managing a stop loss. Or while we're tape reading and observing
181 00:15:52 --> 00:15:56 price, you want to look at reference points like this in past data, and when
182 00:15:56 --> 00:16:00 you're watching it live with me, you want to see it give these types of
183 00:16:00 --> 00:16:04 signatures, and you'll see how it helps you stay in a trade and you're not in a
184 00:16:04 --> 00:16:09 rush to jam a stop loss behind a short trade and get stopped out prematurely.
185 00:16:10 --> 00:16:14 Then we have a bearish order block here. Mark consolidates, creates a small,
186 00:16:14 --> 00:16:17 little, minor buy side liquidity pool. It rallies up, attacks that trades into
187 00:16:17 --> 00:16:20 the bearish order block on that candlestick there. That's what you're
188 00:16:20 --> 00:16:24 being noted there. It's a 15 inch time frame as well. So frame as well. So two
189 00:16:24 --> 00:16:29 factors are occurring here. They're absorbing more trail stops, and they're
190 00:16:29 --> 00:16:33 going into a premium rate. Why would they want to do that? So they can
191 00:16:33 --> 00:16:36 position themselves for the next leg lower, whereas next leg lower going to
192 00:16:36 --> 00:16:40 go right below these relative equal lows and down into that weekly volume and
193 00:16:40 --> 00:16:44 balance. Market rallies up, attacks another minor buy side liquidity pool
194 00:16:44 --> 00:16:49 here hits the premium width constant encouragement of a 15 minute time frame.
195 00:16:49 --> 00:16:53 See all this in here? You can't, you can't appreciate it on the five minute
196 00:16:53 --> 00:16:58 chart, but by having your labels correctly annotated, you know that if
197 00:16:58 --> 00:17:01 you're watching, if you're if you're peaking at a five minute chart in
198 00:17:01 --> 00:17:05 relationship to your one minute chart, or you're watching the one minute chart,
199 00:17:05 --> 00:17:09 you'll have these time frame PD arrays that are anchored to a five or 15 minute
200 00:17:09 --> 00:17:12 time frame, or daily or weekly price is going to be much more subordinate to
201 00:17:12 --> 00:17:20 that in response to their repricing to them or through them, and ultimately it
202 00:17:20 --> 00:17:27 breaks lower here. Okay, and one minute chart here. This is the regular trading
203 00:17:27 --> 00:17:32 hours. So what I'm showing you is the opening bell at 930 that's this price
204 00:17:32 --> 00:17:36 here, and the previous settlement price here, using regular trading hours, we
205 00:17:36 --> 00:17:41 opened here, traded up when we left the upper quadrant open, just fell short by
206 00:17:41 --> 00:17:45 one tick. You might want to compare and contrast your price there, but just fell
207 00:17:45 --> 00:17:50 short by like one tick there, and left that portion open and but you can see
208 00:17:50 --> 00:17:56 the half of that gap it opened traded right up into it, so 77 time, 50% of the
209 00:17:56 --> 00:18:00 gap will get traded to within the first 30 minutes of trading, between 9:30am to
210 00:18:00 --> 00:18:05 10am Eastern Time, the market breaks lower, comes right back up into mean
211 00:18:05 --> 00:18:11 threshold of this up close candle there, breaks lower aggressively, and all the
212 00:18:11 --> 00:18:15 things that we just went through. Now we're going to look at the same time
213 00:18:15 --> 00:18:20 frame, one minute with electronic trading hours here. So inside that
214 00:18:20 --> 00:18:24 bearish fair value gap city, 15 minute time frame basis. We have a small,
215 00:18:24 --> 00:18:27 little fair value gap there, trades up into it. Look at the bodies you're
216 00:18:27 --> 00:18:33 expecting that beautifully breaks so we have a shift in market structure. Trades
217 00:18:33 --> 00:18:37 back up into that fair value gap there. That's an optimal trade entry there.
218 00:18:37 --> 00:18:41 It's a model 2022, entry also, for those that have studied that on this YouTube
219 00:18:41 --> 00:18:47 channel. Then it breaks into that weekly inversion fair value gap here, trades up
220 00:18:47 --> 00:18:51 to the high the inversion fair value gap and then trades back to again. What's
221 00:18:51 --> 00:18:56 this on the five minute chart? It's the first presented fair value gap. We work
222 00:18:56 --> 00:19:01 from the five, I'm sorry, we work from the 15, the five and the one. So if the
223 00:19:01 --> 00:19:04 fair value gap forms on the five minute chart, you don't need to be waiting for
224 00:19:04 --> 00:19:08 it on the one minute chart. So you're working from the higher time frame down.
225 00:19:08 --> 00:19:13 That is the price delivery continuum theory here. It shows perfectly being
226 00:19:13 --> 00:19:18 delivered. Now you see this gap here, and this gap, that's what you're seeing
227 00:19:18 --> 00:19:21 on the one minute chart. But if you're not referring to it in the way I'm
228 00:19:21 --> 00:19:26 teaching it, son, you won't see how this is all one singular candle, where on a
229 00:19:27 --> 00:19:30 one minute chart you might expect, oh, it might want to trade up in here. It
230 00:19:30 --> 00:19:33 might want to trade up into this area, because that might be a bearish order
231 00:19:33 --> 00:19:38 block. No, because it's being subordinate to the five minute chart.
232 00:19:38 --> 00:19:41 Fair value, yeah, because that's the first presented one, so algorithmically,
233 00:19:41 --> 00:19:46 it reprices to that one. It need not go any higher. Breaks back down into a
234 00:19:46 --> 00:19:50 smaller, five minute inversion, fair value gap. You're going to want to go
235 00:19:50 --> 00:19:54 back through the charts here, rewinding and seeing it. But most importantly, you
236 00:19:54 --> 00:19:57 want to go into your own charts and create the same thing in your charts.
237 00:19:57 --> 00:20:01 Not just use mine. You're. Breaks to the low of the inversion fair value got
238 00:20:01 --> 00:20:05 formed on the five minute chart, and then once we go below it, we trade back
239 00:20:05 --> 00:20:09 up into a bearish five minute order block, which, again, is anchored to
240 00:20:09 --> 00:20:12 something over here that you wouldn't see, but on the five minute chart, it
241 00:20:12 --> 00:20:16 was annotated. So as the market creates these things, I'm writing them down on a
242 00:20:16 --> 00:20:20 notepad, but you can't do that initially, so I want you to label your
243 00:20:20 --> 00:20:24 charts like this, it will feel cumbersome, it feels tedious, it feels
244 00:20:24 --> 00:20:29 like a lot of work for nothing. But this is how I learned to trust holding on the
245 00:20:29 --> 00:20:35 trades and seeing them form, seeing this stuff repeat over and over and over
246 00:20:35 --> 00:20:38 again. They had displacement lower. We have a gap in here that was based on a
247 00:20:38 --> 00:20:43 five minute chart. It's too tight for me to annotate it. This one here is on the
248 00:20:43 --> 00:20:51 one minute chart here. So we work lower trade up into a one minute fair value
249 00:20:51 --> 00:20:56 gap. The bodies are trading up into a discount with on the 15 minute time
250 00:20:56 --> 00:21:00 frame. So if it's based on a 15 minute time frame, it's reasonable to see it
251 00:21:00 --> 00:21:05 trade a little bit outside the lines and not change anything. It's not disrupting
252 00:21:05 --> 00:21:09 anything. Basically, the market breaks lower, and that's your breakaway gap.
253 00:21:10 --> 00:21:14 And then we go into the daily volume and bounce on August 13, come back up into
254 00:21:14 --> 00:21:19 consequent encroachment of that. We break lower, we create a five minute
255 00:21:19 --> 00:21:23 fair value gap that you can't see now on a one minute time frame. That's why you
256 00:21:23 --> 00:21:27 have to work from your higher time frame down and you verify them with the lower
257 00:21:27 --> 00:21:32 time frames. How does it behave around them? The market trades through this
258 00:21:32 --> 00:21:36 fair value gap. But what is it doing? It's trading right back up to a bearish
259 00:21:36 --> 00:21:41 order block on a one minute chart, and it's going to the upper quadrant of that
260 00:21:41 --> 00:21:46 daily volume imbalance on August 13, 2024 so all of this is a fake rally. It
261 00:21:46 --> 00:21:50 gets faded into. It breaks lower trades, the consequent encroachment of the five
262 00:21:50 --> 00:21:56 minute fair value gap, which is also a lower quadrant level. On this 15 minute
263 00:21:58 --> 00:22:03 fair value gap, we break lower order block. I don't want to put too many
264 00:22:03 --> 00:22:07 annotations, but these are suggestions for UK, break lower, attack the sell
265 00:22:07 --> 00:22:14 side, consolidate. And using the discount wick constant encouragement of
266 00:22:14 --> 00:22:20 the 12th of August, 2024 trades into that breaks lower and then settles into
267 00:22:20 --> 00:22:25 a small little consolidation, making modern buy side liquidity pool. But the
268 00:22:25 --> 00:22:31 downside objective, which is the discount WIC consequence of August 9,
269 00:22:31 --> 00:22:36 2024, so they're daily. So that's a daily candlestick, PD array. And if you
270 00:22:36 --> 00:22:39 look at that date on your daily chart, you'll see that WIC, and that's the
271 00:22:39 --> 00:22:44 midpoint of that wick there, just like this is the midpoint of the wick on the
272 00:22:44 --> 00:22:48 daily chart for August 12, 2024, so half of the wick. That's consequent
273 00:22:48 --> 00:22:51 encouragement. These are all objectives reaching for so it hits, it hurt first
274 00:22:51 --> 00:22:54 here, then we have this little rally here, and then we finally reach down
275 00:22:54 --> 00:22:56 into this one right there. So