ICT YT - 2024-09-12 - ICT 2024 Mentorship - Lecture 26

Last modified by Drunk Monkey on 2024-09-25 09:32

1	00:01:40 --> 00:01:49	ICT: That is good Morning. It is a good morning. See here. Hope I can hear
2	00:01:49 --> 00:01:52	myself. Yep, I hear the old man.
3	00:01:58 --> 00:02:05	Okay? Welcome, welcome, welcome. So if you turn your attention to the chart on
4	00:02:05 --> 00:02:09	left hand side, that is the five minute chart. It's set to regular trading
5	00:02:09 --> 00:02:15	hours, so that way I can adjust where we get our first opening price. I'll just
6	00:02:15 --> 00:02:22	drag this up here down to it. And this is a 15 second chart, and this black
7	00:02:22 --> 00:02:25	line in here says the previous settlement price, or where we stopped
8	00:02:25 --> 00:02:38	trading yesterday, before 14 or 15 PM. And there we go. So here is our opening
9	00:02:38 --> 00:02:47	range, gap high so now you guys know the protocol. First 30 minutes, we're
10	00:02:47 --> 00:02:53	looking for half the gap to fill. And here is essentially done so and the gap
11	00:02:53 --> 00:02:57	is real close to being filled already, and it's also inside of the new day
12	00:02:57 --> 00:03:05	opening gap. So it's a little lackluster in terms of what you might expect for,
13	00:03:06 --> 00:03:14	for big volatility. So it's really, really next to little unchanged, in my
14	00:03:14 --> 00:03:14	opinion.
15	00:03:20 --> 00:03:26	So remember, I was teaching you about how big the opening range gap is, and
16	00:03:26 --> 00:03:31	what information you get from that. There isn't a large opening range gap
17	00:03:31 --> 00:03:36	today. It was a premium gap. So now we're below it. So you want to turn your
18	00:03:36 --> 00:03:39	attention to and you can notice the difference between where we opened out
19	00:03:39 --> 00:03:42	here on the record training hours. I was the point of showing that I point of
20	00:03:42 --> 00:03:52	showing that now we're below it. So you want to see, do we have any respect
21	00:03:56 --> 00:04:02	inside this area here? It's also the consequent encroachment of the new
22	00:04:02 --> 00:04:05	dividend gap for today. So September, 12, new opening gap. Now
23	00:04:18 --> 00:04:22	there's a little bit of a asset balance cell sign efficiency on the hourly
24	00:04:22 --> 00:04:26	chart. I'll take you over to that.
25	00:04:34 --> 00:04:40	See we're at in here. So that is something that might be a catalyst for
26	00:04:40 --> 00:04:46	us to then try to seek more of a premium, or try to explore the upper end
27	00:04:46 --> 00:05:00	of that opening range, gap quadrants on that cell sign, efficiency. I. I like
28	00:05:00 --> 00:05:07	the fact that we opened and trade lower, because it's punishing those individuals
29	00:05:07 --> 00:05:13	that want to chase the rally that was yesterday, and it's like very classic
30	00:05:13 --> 00:05:20	market making. So you see, we did trade in the upper quadrant of that five
31	00:05:20 --> 00:05:26	minute chart over here. So now we have a minor buy side here at the end of for
32	00:05:26 --> 00:05:32	today, at the low the previous settlement price here, and then we have
33	00:05:32 --> 00:05:38	the opening range gap itself here. So I want to see if we can dig up into that
34	00:05:38 --> 00:05:41	we have minor Buy side sitting right up here at these highs. I'm
35	00:06:00 --> 00:06:10	it looks like they're about to take those individuals out.
36	00:06:18 --> 00:06:23	See how we worked from dropping lower into that five minute buy side balance
37	00:06:23 --> 00:06:27	outside efficiency, which upsets this liquidity right here. And I was talking
38	00:06:27 --> 00:06:31	about, they're on Twitter. I was on there last couple days, Shannon, the
39	00:06:31 --> 00:06:36	flames, hanging out with the boys. There's that liner by side sweat there.
40	00:06:36 --> 00:06:42	So it's almost like, you know, we're going around here, the the lower run
41	00:06:42 --> 00:06:46	into the spots on a balance cell sign in efficiency. If it's bullish, remember
42	00:06:46 --> 00:06:50	what else? What I've been teaching the 2024 mentorship. When there's an
43	00:06:50 --> 00:06:55	inefficiency, we are not looking for a complete overlap of that single
44	00:06:55 --> 00:06:59	candlestick that makes the inefficiency. We want to see sensitivity in the upper
45	00:06:59 --> 00:07:04	half of it. You can see that actually happening here, and then digging up into
46	00:07:06 --> 00:07:10	open trading down to the top of that open range gap, the high of it, and then
47	00:07:10 --> 00:07:14	rallying. So I'm going to turn our attention to exploring a little bit
48	00:07:14 --> 00:07:23	higher up, and ourselves here four.
49	00:07:30 --> 00:07:34	Okay, you see how we just drop down into the high that opening range gap. Again,
50	00:07:38 --> 00:07:44	there's a small inefficiency in there as well. So allow it to get into that and
51	00:07:44 --> 00:07:46	see what it wants to do with that information.
52	00:07:55 --> 00:08:04	So for a model, you can use the one as outlined over here. Narrative I shared
53	00:08:04 --> 00:08:10	on this morning. I want to see it drop down. It dropped down into a discount
54	00:08:10 --> 00:08:16	array, which is this buy side and balance outside efficiency. Frame it
55	00:08:16 --> 00:08:21	with this candle is low. This candle is high. Upper half of that is where the
56	00:08:21 --> 00:08:25	sensitivity is going to be. Means if it's going to be bullish, that's where
57	00:08:25 --> 00:08:35	you want to find the setup or trace down into it here, then aimed for the opening
58	00:08:35 --> 00:08:39	range gap high. That would be a very, very low hanging fruit objective, if you
59	00:08:39 --> 00:08:43	were trying to use this is an area that go along for that. And then a binder, a
60	00:08:43 --> 00:08:50	minor buy side, liquidity was the next one. So so far, we have dropped
61	00:08:50 --> 00:08:58	initially right from the opening bell. Opening bell is 930 and again, this,
62	00:08:58 --> 00:09:04	this chart here. Don't get confused. It's a 15 second chart on the right hand
63	00:09:04 --> 00:09:09	side, and 30 minute open prices here, 930 rather you.
64	00:09:20 --> 00:09:35	I still want some work inside of open range gap.
65	00:09:41 --> 00:09:48	Change this color that's a little too much tension placed on it, once you gain
66	00:09:48 --> 00:10:00	affected from a sentiment perspective. All right, so we have a very. Large,
67	00:10:00 --> 00:10:11	smooth area that we watched a week a week ago, 19,006 95 and if you look at
68	00:10:11 --> 00:10:18	it on a 16 minute chart, and we take it into regular I'm sorry, electronic
69	00:10:18 --> 00:10:27	training hours, yeah, I'm got pretty that chart is really keep your charts
70	00:10:27 --> 00:10:33	clean. Professional does. So if we look at how all these highs over here, how
71	00:10:33 --> 00:10:39	clean they are mentioned this on Twitter, I'd like to see it drop down
72	00:10:39 --> 00:10:44	and then start working towards that level. Does it need to go there entirely
73	00:10:44 --> 00:10:49	today? No, but I'd like to see it try to march towards that now, because it's
74	00:10:49 --> 00:10:55	done a tremendous job of destroying any short sellers yesterday like this, going
75	00:10:55 --> 00:11:00	higher and higher and higher and pressing into that. So that's kind of
76	00:11:00 --> 00:11:03	like what we're looking at for the remainder of the year. I think we're
77	00:11:03 --> 00:11:08	going to have a very, very busy fall going into end of year. So volatility is
78	00:11:08 --> 00:11:13	going to be off the charts like it's going to be very, very fun, but very,
79	00:11:13 --> 00:11:18	very dangerous. So don't think that. You know, every bet should be heavy. You
80	00:11:18 --> 00:11:26	should be more inclined to lower your leverage, but your trade frequency can,
81	00:11:26 --> 00:11:29	if you're going to be working these lower time frames, they that can
82	00:11:29 --> 00:11:32	actually be elevated a little bit more, because you're gonna have a whole lot
83	00:11:32 --> 00:11:35	more setups. If you know what you're looking
84	00:11:42 --> 00:11:52	for. I'm so that's the smooth area I like. Longer term, that's what we're
85	00:11:52 --> 00:12:01	looking for. I'm going to drop back into a one minute chart here. It's playing a
86	00:12:01 --> 00:12:07	little dirty this morning, back and forth in there, tagging that new day,
87	00:12:07 --> 00:12:12	opening gap and previous settlement price Multiple times inside that area.
88	00:12:12 --> 00:12:13	So
89	00:12:38 --> 00:12:48	and you, 933, I, three, 930-931-3233, candlestick, the opening range,
90	00:12:48 --> 00:12:56	essentially, is that first presentation Fairbank app as well. So it'll look like
91	00:12:56 --> 00:13:03	this. Have that frame, but that would be your first The Fairbank app between 930
92	00:13:04 --> 00:13:04	and 10 o'clock,
93	00:13:22 --> 00:14:01	you I give a little bit of time. It's working around inside that daily range
94	00:14:01 --> 00:14:04	from the highs here down to that low
95	00:14:11 --> 00:14:22	back in the opens, opening range gap, opening range is time again, between 930
96	00:14:34 --> 00:14:34	and 10 and
97	00:14:45 --> 00:14:50	Okay, so it's the first 30 minutes of trading, and what you're looking for is
98	00:14:50 --> 00:14:55	initial buy side and sell side to be established. You're also looking for any
99	00:14:55 --> 00:15:02	initial PD array, so any significant break or any. Significant imbalance by
100	00:15:02 --> 00:15:06	side and balance cells on efficiency, sell side imbalance, buy side and
101	00:15:06 --> 00:15:08	efficiency this easy either or, and
102	00:15:13 --> 00:15:17	that'll give you the context for perhaps a silver bullet trade in 10 o'clock. You
103	00:15:52 --> 00:15:58	I look at the one minute chart over here, so gnarly, isn't I contrast that
104	00:15:58 --> 00:16:04	with days where it just has a really nice gap. It has very obvious by side
105	00:16:04 --> 00:16:09	and sell side that has a range away from where it opens up at at 930 and those
106	00:16:09 --> 00:16:16	buy side or sell side liquidity pools, and there's a larger gap opening. You
107	00:16:16 --> 00:16:20	don't want to be having a whole lot of excitement around days that have a very
108	00:16:20 --> 00:16:24	small opening range gap like we have here. You know, it's literally like 15
109	00:16:24 --> 00:16:29	handles or so. So it's not even very much between the previous settlement
110	00:16:29 --> 00:16:34	price and the opening price, which is the higher price, between yesterday's
111	00:16:34 --> 00:16:37	settlement price and today's open so that's what makes it the opening range
112	00:16:37 --> 00:16:45	gap high. And by definition, that would be the opening range gap low. So one of
113	00:16:45 --> 00:16:49	the things that we watch pre market it means anything before 930 opening bell,
114	00:16:49 --> 00:16:58	is we're looking for. Is it maintaining its opening range gap? Or as we get
115	00:16:58 --> 00:17:02	closer to 930 is it reducing it in size. Because if it's reducing it in size,
116	00:17:02 --> 00:17:06	that means we're going to probably have a very muddy morning, or at least the
117	00:17:06 --> 00:17:10	first 30 minutes could become potentially a very muddy session. And so
118	00:17:10 --> 00:17:14	far, we have all this choppiness in here, and while I would prefer seeing it
119	00:17:14 --> 00:17:20	go higher, there isn't anything in here to to operate on. So we have to wait and
120	00:17:21 --> 00:17:26	let the market do what it wants to do, keeping in mind that everybody on the
121	00:17:26 --> 00:17:32	street has saw that move yesterday, and they want to do what they they want to
122	00:17:32 --> 00:17:36	be long. So that initial drop down may not be all there is for a Judah swing
123	00:17:36 --> 00:17:40	here. So this drop down here, they may want to go one more time deeper than
124	00:17:40 --> 00:17:45	that, and anyone that's already long they could be displaced from having that
125	00:17:45 --> 00:17:51	position and no longer be in the market. So it takes a little bit of patience
126	00:17:51 --> 00:17:56	working with these types of environments. And no one really should
127	00:17:56 --> 00:18:00	be looking at this and thinking, wow, I gotta get in on this. You know, it's
128	00:18:00 --> 00:18:06	gotta be, you know, there's nothing better than this right now, the market's
129	00:18:06 --> 00:18:12	not really poised. You have to do it. So just give it its chance to move around
130	00:18:15 --> 00:18:28	and finalize all of its opening range. 15 minutes is not enough information for
131	00:18:29 --> 00:18:34	the daily range. So it's a 30 minute algorithmic period between 9:30am
132	00:18:34 --> 00:18:39	Eastern Standard Time to 10am Eastern Standard Time. That is the algorithms
133	00:18:39 --> 00:18:44	opening range. It sets up initial buy side and sell side and then operates
134	00:18:44 --> 00:18:48	with that. You can also do standard deviations on this range. Hello, hint,
135	00:18:48 --> 00:18:52	nudge, nudge. So it gives you all of these projections. Usually, I tuck that
136	00:18:52 --> 00:18:56	stuff deep, deep, deep inside the lectures, but I gotta toss that out
137	00:18:56 --> 00:18:59	there, because some of you are falling asleep watching these candlesticks paint
138	00:19:00 --> 00:19:08	sideways. Yes. Virginia, if you take the highest high and the lowest low in the
139	00:19:08 --> 00:19:12	first 30 minutes and project them up, you're going to get your enemy in term
140	00:19:12 --> 00:19:19	and long term daily intercession, highs and lows. Don't take my word for it. You
141	00:19:19 --> 00:19:25	got you got to see it for yourself, and you'll see there is an algorithm. All
142	00:19:25 --> 00:19:30	right. So here we are back inside the opening range gap. Now I like the idea
143	00:19:30 --> 00:19:36	of what it's doing in here, because it's, it's like falling short of going
144	00:19:36 --> 00:19:41	any higher, above that 290 level. And we're back inside the opening range gap.
145	00:19:41 --> 00:19:45	We have relative equal lows in here. And again, this is a 15 second chart, so
146	00:19:45 --> 00:19:48	there's liquidity resting below into that. And I like to see it one more time
147	00:19:48 --> 00:19:52	go below these lows over here on the one minute chart, because again, I was
148	00:19:52 --> 00:19:56	saying earlier that everybody on the street, that means people that just
149	00:19:56 --> 00:20:00	watch the news, they watch CNBC, they read newspapers or articles. Where they
150	00:20:00 --> 00:20:04	watch other people do something, and then, because they did something
151	00:20:04 --> 00:20:08	previous day that was bullish or bearish, and it was a big day, and it's
152	00:20:08 --> 00:20:13	a lot of excitement about yesterday, they'll want to go in, and their bias
153	00:20:13 --> 00:20:16	will be, well, I want to do what was happening yesterday, because large
154	00:20:16 --> 00:20:21	ranges, you know, brings in a lot of excitement, and you can see how, by the
155	00:20:22 --> 00:20:26	individuals that maybe would look to go long, or maybe that are long, naturally,
156	00:20:26 --> 00:20:30	their stop loss is going to be right here below these loads in here,
157	00:20:36 --> 00:20:42	it takes a little bit of time watching price and presenting these a little bit
158	00:20:42 --> 00:20:46	harder conditions where, if you're just really impulsive and you want to take
159	00:20:46 --> 00:20:49	some action getting in because you think it's going to keep going up for a longer
160	00:20:49 --> 00:20:57	time, the first 30 minutes of the next trading day. If you sit still and don't
161	00:20:57 --> 00:21:00	do anything during that period, I promise you, there's lots of other
162	00:21:00 --> 00:21:03	opportunities. You don't have to trade the morning session either, like you can
163	00:21:03 --> 00:21:08	literally just trade what the afternoon session. So my question to you is, how
164	00:21:08 --> 00:21:11	many of you already remembered that you're not supposed to be doing anything
165	00:21:11 --> 00:21:17	in the morning session today? That's a large range. Can't list there right on
166	00:21:17 --> 00:21:21	your daily chart. So the protocol is, what you don't trade in the morning
167	00:21:21 --> 00:21:24	session. If you're brand new, you don't trade the morning session. Now, someone
168	00:21:24 --> 00:21:28	that has a little bit more experience, we just bang the lower end of that new
169	00:21:28 --> 00:21:32	day opening gap over here for September 12. That's today's New Day opening gap.
170	00:21:32 --> 00:21:37	So we hit that. I'd like to see if we hadn't any interest in explore lower
171	00:21:37 --> 00:21:41	low, not for the sake of expanding lower, but just to go down into maybe
172	00:21:41 --> 00:21:44	consequent encouragement of that one hour buy side of balance, outside of
173	00:21:44 --> 00:21:48	efficiency, there we go. So anyone that's long, they just had their their
174	00:21:49 --> 00:21:56	their bread toasted. This is what I meant by keeping your fingers out of the
175	00:21:56 --> 00:22:01	mashed potatoes. Large rain stays. You got to be careful in the morning session
176	00:22:01 --> 00:22:06	these they're gonna punish anyone that wants to be on that same side of
177	00:22:06 --> 00:22:10	whatever the previous day's range was, if it's large on your daily chart, when
178	00:22:10 --> 00:22:16	that occurs next morning session, sit still. Write it down in your journal.
179	00:22:16 --> 00:22:19	You have permission to sit still. You have permission not to trade the morning
180	00:22:19 --> 00:22:23	session. Remind yourself that, I promise you, you will probably save yourself a
181	00:22:23 --> 00:22:28	whole lot more frustration and equity and not probably blow your account or go
182	00:22:28 --> 00:22:32	and tilt because you're forcing something in an environment that's
183	00:22:32 --> 00:22:37	already predisposed to try to hurt individuals doing the very thing that
184	00:22:37 --> 00:22:42	yesterday's daily candlestick showed, in other words, extremely, extremely
185	00:22:42 --> 00:22:48	bullishness. Okay, well, they're gonna lay down a landmine field in the morning
186	00:22:48 --> 00:22:54	session. Because what that does, let's, let's make the argument for a sake of if
187	00:22:54 --> 00:22:58	it's gonna go higher and it can, I'd like to see you go up there and take out
188	00:22:58 --> 00:23:05	that 19,006 95 level. I would like to see that disrupted. But it doesn't have
189	00:23:05 --> 00:23:11	to do that. It could do that months from now. It could do it years from now. Okay
190	00:23:13 --> 00:23:18	or never, right it. Those are always possible scenarios. But because
191	00:23:19 --> 00:23:27	yesterday, we had such a huge, very, very energetic, you know, entertaining
192	00:23:27 --> 00:23:33	candle on the daily chart that just kept going higher and higher, that excitement
193	00:23:34 --> 00:23:41	bleeds into the next trading day. And now everybody's out here that are novice
194	00:23:41 --> 00:23:45	traders, let's look at it that way. They're excited. They want to be long,
195	00:23:45 --> 00:23:48	so they're going to take buys on everything that they can hear someone
196	00:23:48 --> 00:23:53	talk about, follow signals. If someone says something on online chats that's
197	00:23:53 --> 00:23:56	bullish, you know, and they what they want to do with their with their
198	00:23:56 --> 00:23:59	trading, that's going to be the catalyst to say, yep, that's all. I needed, that
199	00:23:59 --> 00:24:02	little bit of a bump. And now I'm going to take initiative and get in there and
200	00:24:02 --> 00:24:08	trade long and in the first 30 minutes of the session, what generally happens
201	00:24:08 --> 00:24:16	is, is it allows these types of traders to come in, and it lays down a little
202	00:24:16 --> 00:24:21	bit of breadcrumbs, like, hey, look, we're going up and all of these little
203	00:24:21 --> 00:24:28	bull flags in here on them, the 15 second chart. And I liked how it like I
204	00:24:28 --> 00:24:32	said it was failing to get up there. It means it's likely to do what, roll over
205	00:24:32 --> 00:24:36	and dig into that buy side imbalance on the LRE chart, which is the shaded area
206	00:24:36 --> 00:24:40	is blue, and then take out that initial low of the day where there's sell side.
207	00:24:41 --> 00:24:47	So why would that be advantageous for the algorithm to do that? What? Why
208	00:24:47 --> 00:24:52	would it? Why would it be a good thing to see something like that unfold? Well,
209	00:24:52 --> 00:24:57	because you actually have early buyers coming in trying to do what they saw
210	00:24:57 --> 00:25:03	yesterday's winning crowd. Do be proud. Being long. So if they lay down this
211	00:25:03 --> 00:25:08	landmine field of here's a low start, sending a higher opportunities to go in
212	00:25:08 --> 00:25:15	here, supply and demand guys, okay, they'll, they'll call this a demand
213	00:25:15 --> 00:25:25	zone, and they give it to them here and here and then, no, we're not going to
214	00:25:25 --> 00:25:29	let you go higher. And even the supply and demand dudes are going to be doing
215	00:25:29 --> 00:25:33	what they're going to place their stop loss below there. Fibonacci traders are
216	00:25:33 --> 00:25:37	going to be buying down in here on retracements and ratios and harmonic
217	00:25:37 --> 00:25:40	pattern. Traders are going to get all this little bit of a movement lower
218	00:25:40 --> 00:25:43	here. And you're going to get psyched by that, and they're going to buy it,
219	00:25:44 --> 00:25:49	moving average crossovers, okay? Every every possible indicator that is an
220	00:25:49 --> 00:25:53	overall oversold momentum indicator, they're all oversold here. That's what
221	00:25:53 --> 00:25:58	retail traders like myself when I was 20 years old in 1992 that was the secret to
222	00:25:58 --> 00:26:04	the market. I believe then and then what everybody initially that's long on a
223	00:26:04 --> 00:26:09	large range day that closed higher in the first 30 minutes, that low is always
224	00:26:09 --> 00:26:15	going to be a suspect low, whatever low they form, and they paint this little,
225	00:26:15 --> 00:26:19	tiny, short term low, always expect that scenario, that they're going to lay that
226	00:26:19 --> 00:26:24	down as a trap. So you can use it as a turtle suit. You can use it as a scout
227	00:26:24 --> 00:26:33	to trade down into that over here, working the upper end of that opening
228	00:26:33 --> 00:26:38	range. Gap in here breaks lower trades inside of this inefficiency and returns
229	00:26:38 --> 00:26:43	right back into the end up and then trades lower. Listen to the recording
230	00:26:43 --> 00:26:50	back at that period of time, it'll all be in recording, and it sweeps the low
231	00:26:50 --> 00:26:56	over here, where the sell side is okay. Now it's accumulating inside the end
232	00:26:56 --> 00:27:00	dog, and I like to see them run up in here and clear up some of this buy side.
233	00:27:00 --> 00:27:04	And how we trade there, once we get there, will be indicative of any
234	00:27:04 --> 00:27:09	continuation going further. But we're still inside that 30 minute time frame,
235	00:27:09 --> 00:27:14	so you have to be careful. You don't want to be trying to vet the farm yet,
236	00:27:15 --> 00:27:19	meaning you're not trying to secure the low the day or the high today. They can
237	00:27:19 --> 00:27:22	play real dirty in this first 30 minutes.
238	00:27:33 --> 00:27:36	So we're still inside that opening range. Got there.
239	00:27:55 --> 00:27:56	And dog love and
240	00:28:07 --> 00:28:14	so what you're learning Caleb is things to lean on for logic, comparing what the
241	00:28:14 --> 00:28:22	daily range was and how price traded the previous day, and, oh, excuse me, and or
242	00:28:22 --> 00:28:26	the last session of the day, meaning the pm session and the last hour trading.
243	00:28:36 --> 00:28:41	Seasonal allergies, I mentioned it the other day. You're probably going to have
244	00:28:43 --> 00:28:47	that frustration that I get sometimes i when I'm to a speaker or I listen to an
245	00:28:47 --> 00:28:51	audio book and they do their speaking, and they either have a head cold or
246	00:28:51 --> 00:28:56	they're very mucousy. It's hard for me to focus on what they're saying, because
247	00:28:56 --> 00:29:02	I'm hearing all their their spit, their saliva. It's disgusting, isn't it? But,
248	00:29:02 --> 00:29:11	you know, I just gotta show you, I'm not AI. How about that? All right, so we are
249	00:29:11 --> 00:29:18	inside of over here. Watch this. This candlesticks, wick, midpoint,
250	00:29:18 --> 00:29:22	consequent, crochet. We came down. Hit that. So I'm watching this level here as
251	00:29:22 --> 00:29:28	I'm watching the 15 second Okay, so now what I got to say just know that this
252	00:29:28 --> 00:29:32	doesn't mean it's the secret sauce to it. Okay, but I get questioned all the
253	00:29:32 --> 00:29:37	times, you know, how am I looking at all these monitors? Because I have a whole
254	00:29:37 --> 00:29:42	array of 12 monitors that are on my my desk, and then I have several monitors
255	00:29:42 --> 00:29:48	to the right, and then I have a tablet, and then I have the laptop here that I'm
256	00:29:48 --> 00:29:52	live streaming. I'm not in my office right now. I'm just simply looking at
257	00:29:52 --> 00:29:58	I'm actually on my bed right now, but what I'm watching is, is I'll have
258	00:29:58 --> 00:30:03	different time frames. I. I'll have a daily chart, I'll have a four hour
259	00:30:03 --> 00:30:08	chart, one hour chart, 15 minute chart, five minute chart, and then I have a
260	00:30:08 --> 00:30:14	matrix chart where it's the 54321, and then I do the same thing with a 45
261	00:30:14 --> 00:30:19	second, 32nd 15 second and five second Matrix chart where I'm I'm constantly
262	00:30:20 --> 00:30:27	going through my eyesight, my eyes are going to each one of those time frames
263	00:30:27 --> 00:30:31	cycling through constantly. When I'm watching price, I'm constantly going
264	00:30:31 --> 00:30:35	through looking for that, and I'm looking for how traders would see those
265	00:30:35 --> 00:30:40	time frames and implement either an interest in buying or selling it, or
266	00:30:40 --> 00:30:44	where their stop loss would be placed in respect to that specific time frame,
267	00:30:44 --> 00:30:47	because not everybody trades on a one minute chart, not everybody trades on a
268	00:30:47 --> 00:30:52	five minute chart. So when the market affords a one hour setup or a four hour
269	00:30:52 --> 00:30:59	setup, I'm constantly bringing that information into my mind in terms of
270	00:31:00 --> 00:31:07	building a narrative. What should the participants fall on, in terms of ruin?
271	00:31:07 --> 00:31:12	How can these traders that are less informed fail today? That's what I'm
272	00:31:12 --> 00:31:15	looking for. I'm looking for that opportunity to see where I can see
273	00:31:15 --> 00:31:19	something that is, in my mind, high probability it's going to go to a
274	00:31:19 --> 00:31:24	specific level, go higher or lower. And then, if I had that same thing unfolding
275	00:31:24 --> 00:31:28	at a time when something retail, some kind of retail pattern, a double touch,
276	00:31:28 --> 00:31:31	or a triple touch to some kind of supposed diagonal trend line, or, you
277	00:31:31 --> 00:31:37	know, something nonsensical, some kind of pennant pattern or shape, some kind
278	00:31:37 --> 00:31:41	of shape that they see, okay, it's kind of like when you look and see and look
279	00:31:41 --> 00:31:46	up in the clouds and you think you see a face or you see something else, our our
280	00:31:46 --> 00:31:50	minds are designed to look for that. We're actually sinking the face of God,
281	00:31:50 --> 00:31:53	whether you believe it or not. And that's why we had that phenomenon always
282	00:31:53 --> 00:31:58	occur. We're always seeing like faces in in things. Oh, I saw the face of so and
283	00:31:58 --> 00:32:03	so my grilled cheese sandwich, that's actually occurring in everybody. Not
284	00:32:03 --> 00:32:07	that we would all see the same face in a grilled cheese sandwich, mind you, but
285	00:32:07 --> 00:32:12	we have that phenomena occur in our minds because we're wired that way. So
286	00:32:12 --> 00:32:17	if you go in and you start building a sensitivity and opening your reticular
287	00:32:17 --> 00:32:21	activating system to the possibility of the market respecting, you know,
288	00:32:21 --> 00:32:28	geometric patterns in triangles and whatnot, rhomboids, that, to me, is a
289	00:32:28 --> 00:32:31	little myopic. So you have to, you have to strip it down to what makes the marks
290	00:32:31 --> 00:32:41	go up. Buyers seeking what higher prices. And that buyer has to buy the
291	00:32:41 --> 00:32:44	discount price, and that's what the algorithm affords it. Okay? So we've
292	00:32:44 --> 00:32:51	completed our 10am opening range gap. Sorry, opening range and then we're
293	00:32:51 --> 00:32:55	inside of the opening range gap. The low of it touching the end, dog low, right
294	00:32:55 --> 00:33:01	there. So now look at that one minute chart on left hand
295	00:33:06 --> 00:33:12	side. Nothing in here is terribly exciting, is it? We're basically
296	00:33:12 --> 00:33:18	unchanged from where we closed yesterday. So how is that exciting? It's
297	00:33:18 --> 00:33:26	not. And this is typical of what you see on a morning session after a large range
298	00:33:26 --> 00:33:30	day. If it's higher or lower, it doesn't matter. It's not because it went higher.
299	00:33:30 --> 00:33:35	It's acting this way. It's same thing is going to happen on a large range day
300	00:33:35 --> 00:33:48	that's on a down close. We have minor buy side here, like that up here.
301	00:33:59 --> 00:34:04	Okay, so we had cell side below this low here taken look at the bodies down here.
302	00:34:05 --> 00:34:10	What were the bodies respecting the lower quadrant of that one hour by side
303	00:34:10 --> 00:34:13	and balance cell sign and efficiency. That's what this blue shaded area is
304	00:34:13 --> 00:34:20	over here. Case you just started watching the stream. So I'm going to
305	00:34:20 --> 00:34:27	take the 10 o'clock vertical lines off because they're no longer necessary to
306	00:34:27 --> 00:34:36	communicate them the method. So touch the end dog high again here, and cost
307	00:34:36 --> 00:34:43	encroachment of the opening range gap. Want to see if it can mount a run into
308	00:34:43 --> 00:34:46	the liquidity resting above the 280 8.75 level.
309	00:34:54 --> 00:34:59	The better trading should be in the afternoon, starting 1:30pm Eastern,
310	00:34:59 --> 00:35:05	Standard Time. Going into the last hour of trading. Why? Because we had a very
311	00:35:06 --> 00:35:11	anemic opening. It was really small in terms of opening range gap. It's after
312	00:35:11 --> 00:35:18	what a large range update. So you can afford to go fishing when the morning
313	00:35:18 --> 00:35:23	sessions after a large range day, and then come back, grab some lunch. Let me
314	00:35:23 --> 00:35:28	take a nap, and then at 130 sit at your desk, and then trade the afternoon
315	00:35:28 --> 00:35:33	session, because you're going to get a whole lot more cleaner price runs. You
316	00:35:33 --> 00:35:36	won't get a lot of this fickle back and forth where it's just I don't want to go
317	00:35:36 --> 00:35:39	anywhere. ICT just needs to stay here. I'm going to stay in bed. That's what
318	00:35:39 --> 00:35:47	the market's basically saying right now, it wants to stay in bed. It's lazy, all
319	00:35:47 --> 00:35:52	right, so I would want to see it run here to that 281, 75, level. If it's
320	00:35:52 --> 00:35:57	bullish, it should run here. But keep in mind, Caleb, while you're watching this,
321	00:35:57 --> 00:36:03	you're in a session post large range. So what does that mean? Setups are more
322	00:36:03 --> 00:36:07	prone to fail. That's the reason why you should not be trying to go in here and
323	00:36:07 --> 00:36:13	press it hard on a morning session after a large range day. That is a climate and
324	00:36:13 --> 00:36:20	a characteristic about the daily range that you have to at least be aware of. I
325	00:36:20 --> 00:36:24	didn't discover that, you know, overnight, it took lots and lots of
326	00:36:25 --> 00:36:29	blown accounts, drawdown and frustration, and I found out that what I
327	00:36:29 --> 00:36:36	was trying to do was I was taking my my katana that had a razor sharp edge, and
328	00:36:36 --> 00:36:43	I was rubbing it against a concrete block like a saw dulling it. So I was
329	00:36:43 --> 00:36:49	using like a ton on something that is not designed to cut, so you have to sit
330	00:36:49 --> 00:36:54	still, wait for the opportunity with the characteristics of the daily range to be
331	00:36:54 --> 00:37:02	there. Okay? You want a candlestick range theory. This is one of them, okay?
332	00:37:02 --> 00:37:06	But you ain't hearing it in those dollar mentorships, okay? The wish version of
333	00:37:06 --> 00:37:11	smart money, I tell you what, I'm really having a lot of funding on Twitter.
334	00:37:11 --> 00:37:16	Again, I'm only visiting for a short while. Mind you, but man, a lot is it's
335	00:37:16 --> 00:37:26	successful over there. Everybody knows nothing to the end all So now imagine
336	00:37:26 --> 00:37:31	for a moment, okay, say, for instance, Caleb, that you were wanting to trade
337	00:37:31 --> 00:37:37	today, okay, and the very first fair value gap that forms on the one minute
338	00:37:37 --> 00:37:44	chart is you have it at the 933 candle. So trading down into that, we get a
339	00:37:44 --> 00:37:49	delivery above the short term high here, yes, by going here. But what happened
340	00:37:49 --> 00:37:53	after that, right back into the range and then attacked what I was outlining,
341	00:37:53 --> 00:37:57	that they would use the initial low of the day to target anyone that wants to
342	00:37:57 --> 00:38:01	chase the price that was delivered to the market yesterday, which is a very
343	00:38:01 --> 00:38:05	large up close day on the daily chart. So the market came down, took those
344	00:38:05 --> 00:38:12	individuals out, the bodies over here, respected the bison about cell sign
345	00:38:12 --> 00:38:16	efficiency of the hourly chart. That's that blue shaded area here, okay. And
346	00:38:16 --> 00:38:22	then they ran just for short term liquidity there, and this big balanced
347	00:38:22 --> 00:38:30	area here is offering initial high resistance, so you have to sit still and
348	00:38:30 --> 00:38:33	take in more information. You're not trying to press the button on these
349	00:38:33 --> 00:38:39	sessions. You're not trying to be smart. You're not trying to be right. Okay,
350	00:38:39 --> 00:38:44	what you're doing is you're seeing, how are they hurting traders that just can't
351	00:38:44 --> 00:38:51	sit still? How are they doing that? They keep coming back, offering deep, little
352	00:38:51 --> 00:38:56	recon. I shouldn't say they keep causing retracements to take out short term
353	00:38:56 --> 00:39:04	lows, but they're not letting the market go higher. You see that. Watch. Look at
354	00:39:04 --> 00:39:08	the 15 second chart. See this swing low, actually, to start over here with the
355	00:39:08 --> 00:39:15	initial we have this low here, which is the upper quadrant of this blue shaded
356	00:39:15 --> 00:39:19	area, which is a one hour buy side of balance, outside efficiency, the market
357	00:39:19 --> 00:39:24	trades down below that and then trades higher. It creates a swing low right
358	00:39:24 --> 00:39:29	there you see that that swing low not because it has a swing low that has a
359	00:39:29 --> 00:39:32	low, a higher low to the left of it and a higher low to the right of it. That
360	00:39:32 --> 00:39:35	doesn't make that swing low interesting to me, just because it does that. What
361	00:39:36 --> 00:39:39	makes it interesting is that that swing low is forming at the high the buy side
362	00:39:39 --> 00:39:43	of L cell sign inefficiency, that blue shaded area here on your hourly chart.
363	00:39:43 --> 00:39:46	Again, let me, let me show you over here. So now, if I don't do this, that
364	00:39:46 --> 00:39:51	new people get confused, this candle sticks high, this candle sticks low,
365	00:39:51 --> 00:39:56	this one big candle passing through. The difference between this candles high,
366	00:39:56 --> 00:39:59	that candle is low, that inefficiency. That's what I'm measuring on top of fib
367	00:39:59 --> 00:40:06	from here. Here to here. So that upper quadrant level is where this swing,
368	00:40:06 --> 00:40:11	swing low is forming. So that's going to have liquidity below that has an
369	00:40:11 --> 00:40:15	interest in in my mind, I'm interested in seeing that. So when I'm watching
370	00:40:15 --> 00:40:20	price deliver, is it doing a run below that it does. And then you have this
371	00:40:20 --> 00:40:24	swing high, which happens to be just at the top of the opening range gap. That's
372	00:40:24 --> 00:40:29	this gray shaded area. Okay, so there's what's above that. It's buy side. So the
373	00:40:29 --> 00:40:33	market does what it sweeps the sell side here, attacks the buy side here, and
374	00:40:33 --> 00:40:37	then the relative equal highs. It's taken that. And then we have a swing
375	00:40:37 --> 00:40:40	high here, at the high end of the opening range gap again, and their cell
376	00:40:40 --> 00:40:44	side below here. So we're digging into that every single time it takes the cell
377	00:40:44 --> 00:40:52	side, it's not coming up deep enough to get into that 19,000 to 88.75 up. So to
378	00:40:52 --> 00:40:56	me, when I see this, let's say, for instance, that we stay in the range
379	00:40:56 --> 00:41:02	between the low of this bison about cell sign efficiency on this hourly chart
380	00:41:02 --> 00:41:06	say, we say we don't take that out, but we maintain the highest height it's
381	00:41:06 --> 00:41:11	formed today, and we maintain that range throughout all the morning session and
382	00:41:11 --> 00:41:16	going into the lunch hour. So if I turn my charts on, let's say, for instance,
383	00:41:16 --> 00:41:22	one o'clock, 115 right before 130 and that range still is there, then I'd be
384	00:41:22 --> 00:41:27	more inclined to expect to see them to release it and start exploring higher
385	00:41:27 --> 00:41:32	prices. Right now. They're just chopping people up because they all want to be on
386	00:41:32 --> 00:41:37	board. They all want to be on board. And every time short term lows are being
387	00:41:37 --> 00:41:43	taken out, what's below that sell side. So again, why would that be? Why would
388	00:41:43 --> 00:41:49	that be gainful? What would be the the advantages of of seeing that unfold,
389	00:41:50 --> 00:41:54	someone's accumulating, that someone's accumulating those, those stops that are
390	00:41:54 --> 00:41:58	being taken out. And you're, you're thinking, Well, you know, Michael, it's,
391	00:41:58 --> 00:42:03	this is a 15 second chart, you know, who's got stops below that everybody
392	00:42:03 --> 00:42:06	that you will never meet out there, there's always somebody buying and
393	00:42:06 --> 00:42:09	selling. I mean, just look at social media. They're telling you that they're
394	00:42:09 --> 00:42:13	buying stuff and selling stuff based on nonsense the stars, horoscopes, you
395	00:42:13 --> 00:42:21	know, whatever the there's always buying and selling that's going to that's going
396	00:42:21 --> 00:42:25	to that be in the marketplace. But my interest is, where can that buying and
397	00:42:25 --> 00:42:30	selling be targeted? It's not buying and selling pressure, it's buying and
398	00:42:30 --> 00:42:36	selling liquidity. That's the that's the real Mojo, okay, it's not the buying and
399	00:42:36 --> 00:42:41	selling pressure. It's where are those orders and where are they laid in a in a
400	00:42:41 --> 00:42:46	manner where the narrative can exploit that. So for instance, let's paint the
401	00:42:46 --> 00:42:52	scenario for a moment. Let's say that you are bearish. Okay, so you're bearish
402	00:42:53 --> 00:42:58	and you're expecting to market, the market to go lower. Your eyesight should
403	00:42:58 --> 00:43:07	be keen going every short term swing high, every time frame, and you would be
404	00:43:07 --> 00:43:11	watching and monitoring how price is delivered once it trades above those
405	00:43:11 --> 00:43:17	short term highs. And if you are on side and you have the right analysis that you
406	00:43:17 --> 00:43:25	think the market is going lower, the market should accumulate those short
407	00:43:25 --> 00:43:32	term highs for the purpose of taking the buy stops out. And then your mind should
408	00:43:32 --> 00:43:37	think, Okay, if that's occurring, that means smart money is probably in the
409	00:43:37 --> 00:43:41	move right now, and they're building their position every time these short
410	00:43:41 --> 00:43:44	term highs are taken, they're establishing the other side of those buy
411	00:43:44 --> 00:43:49	stops and they're leaving their orders in because they expect, what a longer
412	00:43:49 --> 00:43:55	term move lower. Okay, well here we're seeing the opposite. We're seeing all
413	00:43:55 --> 00:44:02	the short term lows here being swept there, these here, being swept there,
414	00:44:02 --> 00:44:06	and that one making sure that one's gone. The buy side that's resting here,
415	00:44:06 --> 00:44:12	and the high of the morning session over here, where these clean highs are,
416	00:44:12 --> 00:44:16	that's where the next buy side would be. So we would have to measure what the
417	00:44:16 --> 00:44:20	delivery of prices once it gets above these levels here, because it's already
418	00:44:20 --> 00:44:25	done enough, in my opinion, to healing enough of the sell stops to then now
419	00:44:26 --> 00:44:31	allow for that daily range to try to flirt with a little bit of a we think
420	00:44:31 --> 00:44:38	about, if they want to send price higher, they have to do what they have
421	00:44:38 --> 00:44:46	to enter before it goes up. So what's the easiest way to find sellers at a
422	00:44:46 --> 00:44:47	cheap price?
423	00:44:49 --> 00:44:53	Take out short term loans, and those short term lows being taken out. That
424	00:44:53 --> 00:44:57	means that their sell stops their retail minded traders, and there's the buy side
425	00:44:57 --> 00:45:02	hit there the sell stops being taken. Out affords the smart money to
426	00:45:02 --> 00:45:06	accumulate them and see retail is going to buy and sell, buy and sell, and be
427	00:45:06 --> 00:45:11	impulsive about what they're doing, where smart money sits still and they
428	00:45:11 --> 00:45:15	wait, because everybody's coming out here to the same watering hole. The
429	00:45:15 --> 00:45:20	initial, you know, 30 minutes or so of trading, there's this big rush to do
430	00:45:20 --> 00:45:25	something. They're all thirsty. And most predators, they go to the watering hole
431	00:45:25 --> 00:45:35	at night because their prey are usually sleeping. Predators come at night and
432	00:45:35 --> 00:45:38	they get their drink, so they're not going to the watering hole in the day.
433	00:45:38 --> 00:45:42	The drink down there with the gazelles and the antelope and the water buffalo
434	00:45:42 --> 00:45:47	and whatever goes down there, whatever they eat. Basically, they're in a tall
435	00:45:47 --> 00:45:52	grass waiting for them to go down and when they walk into their crosshairs,
436	00:45:52 --> 00:45:58	proverbially speaking, they pounce on them to eat them. And that's what smart
437	00:45:58 --> 00:46:03	money's doing. It's it's waiting for these opportunities, for the market
438	00:46:03 --> 00:46:07	participants to say, Okay, I want to be on board in the marketplace long because
439	00:46:07 --> 00:46:12	that's what it did yesterday. And darn it, I just want to be on the right side
440	00:46:12 --> 00:46:15	once in a while. And I think it's, it's going to go higher, okay, well,
441	00:46:15 --> 00:46:19	wonderful, but soon as the bell rings, they're going to go in there and do
442	00:46:20 --> 00:46:25	what, bye bye bye bye bye, or they'll wait for some kind of a initial support
443	00:46:25 --> 00:46:30	level. And when they see this type of movement here, and it starts to rally
444	00:46:30 --> 00:46:34	up, well, highs are being taken there, that's a breakout. They're seeing what
445	00:46:34 --> 00:46:40	pattern here? Bull flags. Bull flags. Oh, there's some support in here. And
446	00:46:40 --> 00:46:44	then it rolls over and goes where I told you to aim for, which is this low. And
447	00:46:44 --> 00:46:49	it went down below it after hitting the end dog, go back and listen to the
448	00:46:49 --> 00:46:52	recording. It's going to go down here from here rather take out that initial
449	00:46:52 --> 00:47:01	low of the day. Why does it want to do that? Because it's engineering sentiment
450	00:47:01 --> 00:47:08	for traders to be discouraged. Oh, it's, uh, it's going to go it's going to go
451	00:47:08 --> 00:47:13	lower. Okay, I wanted to go in and go long, but now it's going to go lower, so
452	00:47:13 --> 00:47:17	now I have to go short. Well, that's the same thing as a sell stock being hit,
453	00:47:17 --> 00:47:21	because now that same seller in the marketplace Smart Money will accumulate
454	00:47:21 --> 00:47:25	a long position against that liquidity as well. So don't think for a second
455	00:47:25 --> 00:47:30	that it just has to be below no low. If the market starts to show like this
456	00:47:30 --> 00:47:34	faint of a move like it wants to go lower. I told you it was just going to
457	00:47:34 --> 00:47:42	go down and take out that sell stops on the initial low, and then it cleared the
458	00:47:42 --> 00:47:46	relative equal highs over here, and look where it's pressing in here, just alone,
459	00:47:46 --> 00:47:53	based on everything I've shared here, like that is light years ahead of white
460	00:47:53 --> 00:47:57	golf and all kinds of other stuff out there that people falsely attribute to
461	00:47:57 --> 00:48:02	me as repackaging. You're not going to find these types of insights in any
462	00:48:02 --> 00:48:04	other book, you're not going to get it. Okay, you're not going to get it. Larry
463	00:48:04 --> 00:48:09	Williams didn't teach this. Lena rash and Larry Connors, in their book street
464	00:48:09 --> 00:48:14	smarts, didn't teach that. And without me explaining like, imagine just what
465	00:48:14 --> 00:48:20	I've talked about so far in the last 15 minutes. It would take me so many charts
466	00:48:21 --> 00:48:25	of every tiny, little incremental move here to try to illustrate what I just
467	00:48:25 --> 00:48:29	did live. I can't put that kind of stuff in a book that it's not efficiently
468	00:48:29 --> 00:48:34	delivered and taught in a book like you have to watch it being done over a live
469	00:48:34 --> 00:48:39	chart that that's that's the benefit of being mentored by someone that knows
470	00:48:39 --> 00:48:42	what they're talking about. They can explain it live, if a real time price
471	00:48:42 --> 00:48:47	action with a 15 second chart reading it off of a higher Time Frame hourly chart
472	00:48:47 --> 00:48:51	on Twitter, I told you, I want to see it drop initially and then work towards
473	00:48:51 --> 00:48:58	what the 19,006 95 level, okay. Is that that price here? Absolutely not. Okay.
474	00:48:58 --> 00:49:03	But is it moving in that direction? Yes, and that's all you're looking for. As a
475	00:49:03 --> 00:49:07	short term intraday trader, you're looking for something to provide a
476	00:49:07 --> 00:49:12	catalyst. Okay, if you're bullish, what gives you the framework to trust that
477	00:49:12 --> 00:49:16	the market itself should go higher? Don't tell me the patterns that you're
478	00:49:16 --> 00:49:20	looking for. That's the least important thing, because that's your entry. The
479	00:49:20 --> 00:49:26	entry is not important. Why should the market go when you think it's going to
480	00:49:26 --> 00:49:33	go up? That's the more important question. And if you go in right out of
481	00:49:33 --> 00:49:37	the gate at 930 in the morning after a large range day, you're going to be met
482	00:49:37 --> 00:49:41	with adversities, and you're probably going to get stopped out, even if you're
483	00:49:41 --> 00:49:46	right on a direction where the market's going to likely go, or the short term,
484	00:49:46 --> 00:49:50	the immediate term or the long term, draw on liquidity. If you're bullish,
485	00:49:50 --> 00:49:55	that means, like, where you think it's going to go to as a target. You may have
486	00:49:55 --> 00:50:04	all that right, but if you don't expect you. Adversity, range bound, time
487	00:50:04 --> 00:50:09	distortion. That's what you're experiencing in the first 30 minutes
488	00:50:10 --> 00:50:15	after a large range day, whether it's a bullish day or a bearish day, when you
489	00:50:15 --> 00:50:25	see a large range day the next morning session, expect that first 30 minutes to
490	00:50:25 --> 00:50:30	just mark time. Okay. They call it R coating, or painting, just back and
491	00:50:30 --> 00:50:34	forth, up and down, watching paint dry and grass grows. Basically what it okay,
492	00:50:34 --> 00:50:39	to me, it looks like a picket fence. This goes sideways, and that's what
493	00:50:39 --> 00:50:46	you're seeing, essentially in price action in that first few minutes of
494	00:50:46 --> 00:50:52	trading, it's just like, and then you wait for a minute to move. What would
495	00:50:52 --> 00:50:57	that be? Well, as I outlined on Twitter this morning, I I put a poll up, and I
496	00:50:57 --> 00:51:03	haven't looked at the the polls results yet. Okay, I I posted it, and then I
497	00:51:03 --> 00:51:10	went and had some late breakfast with my wife while we were getting ready to
498	00:51:10 --> 00:51:15	start this live stream. And before I left Twitter, I told everybody. I said,
499	00:51:15 --> 00:51:20	I would rather see the market drop initially and then move towards that
500	00:51:20 --> 00:51:25	19,006 95 level, because it's really smooth, relative equal highs up here.
501	00:51:25 --> 00:51:28	There's like, four or five highs up there that just did not get through last
502	00:51:28 --> 00:51:32	week. And we were giving it a chance to reach for it, but it just said, No, I'm
503	00:51:32 --> 00:51:36	not interested yet. And they had a nice drop away from that big drop, actually.
504	00:51:37 --> 00:51:42	So everybody has forgot about that level. Nobody has any interest in that
505	00:51:42 --> 00:51:47	level. And when I asked everyone that to mark their 60 minute and 15 minute, buy
506	00:51:47 --> 00:51:53	side, sell side, they are looking at, you know, the ones that were formed five
507	00:51:53 --> 00:51:59	candles ago, one of my minute chart, you have to zoom out. You have to zoom out
508	00:51:59 --> 00:52:06	and see, okay, Where can this thing be reaching for? And some of you completely
509	00:52:06 --> 00:52:11	forgot about that, that level up there, and it's still in the cards. It's still
510	00:52:11 --> 00:52:15	potentially possible for that to be traded to this week. It could be traded
511	00:52:15 --> 00:52:20	there today, if it really wants to get wild and crazy about it. But that is a
512	00:52:20 --> 00:52:25	logical level to draw to because it's so smooth, it's so perfectly designed,
513	00:52:25 --> 00:52:29	where they all agree with maybe just slightly lower than that, but that, that
514	00:52:30 --> 00:52:36	90,006 95 level is it's right for the picking basically. Now we have some
515	00:52:36 --> 00:52:39	rains to get through to get to that level. And I'm not saying this is going
516	00:52:39 --> 00:52:43	to be a straight line to it. But in my mind, that's what I was thinking about
517	00:52:43 --> 00:52:47	in terms of the narrative today. And when I'm live streaming this and I'm
518	00:52:47 --> 00:52:50	talking to you, that's why I felt confident about talking about how, see,
519	00:52:50 --> 00:52:55	I like how it's been keeping the ability to not go above that 280, 8.75 level.
520	00:52:56 --> 00:53:00	Rewind it, you'll hear me talk about it, and then I think it's going to roll
521	00:53:00 --> 00:53:06	over. And you can take out that initial low of the day at the bottom end of that
522	00:53:06 --> 00:53:12	new dog, or in dog New Day, opening gap at the time. I said we're hitting that.
523	00:53:12 --> 00:53:17	We're going to see if it wants to roll over and take out that initial low. It
524	00:53:17 --> 00:53:24	does so towards what level it's the lower quadrant of that one hour buy,
525	00:53:24 --> 00:53:31	side of balance, outside of efficiency. So if it's bullish, is it better for it
526	00:53:31 --> 00:53:34	to come all the way down and touch this candle high? Like everybody thinks
527	00:53:34 --> 00:53:38	that's that's how inefficiencies are traded. Bro. Inefficiencies have always
528	00:53:38 --> 00:53:43	been around. Bro. You didn't invent an inefficiency. No, I didn't. I didn't
529	00:53:43 --> 00:53:48	invent an inefficiency. I invented the proper logic to trade them okay? And
530	00:53:48 --> 00:53:52	what you want to see is, you want to see them not completely filled. You don't
531	00:53:52 --> 00:53:58	want to see them fill. You've never heard Chris Laurie teach that in any of
532	00:53:58 --> 00:54:03	his teachings. I have every single one of his recordings before he changed his,
533	00:54:04 --> 00:54:10	his his what he called his program. He that he asked me. He gave me login
534	00:54:10 --> 00:54:14	information I didn't pay for that. He gave me long information to look at and
535	00:54:14 --> 00:54:15	critique what he was doing.
536	00:54:18 --> 00:54:23	It was never in any of his lectures. So I don't teach liquidity voids being
537	00:54:23 --> 00:54:27	filled in completely there through trade. It can trade all the way down to
538	00:54:27 --> 00:54:30	that low, but that's not what I'm looking for, and that's what I'm
539	00:54:30 --> 00:54:35	teaching you to look for, the opening, staying some portion open, because what
540	00:54:35 --> 00:54:42	that means is everybody thinks that this level is where it should trade to. If
541	00:54:42 --> 00:54:45	they have any understanding about market inefficiencies, they think that this
542	00:54:45 --> 00:54:51	candle sticks high here. They think this is the this is the bees knees, baby.
543	00:54:51 --> 00:54:54	They want to get in there and try to get in as low as they possibly can to buy
544	00:54:54 --> 00:55:02	that. And I am telling you you want to grade you. That inefficiency that's
545	00:55:02 --> 00:55:08	defined like this, okay, between this candle is low and this candle is high,
546	00:55:08 --> 00:55:16	and if you drop your fib on that and you put it in 25% 50% and 75% of that range,
547	00:55:16 --> 00:55:20	you can see what the algorithm will do, because it's doing this very thing here,
548	00:55:20 --> 00:55:26	the mechanism that it's calculating on is they're taking it this high, this
549	00:55:26 --> 00:55:30	low, and they're getting this level, this level, and this level. And it will
550	00:55:30 --> 00:55:33	not if it wants to go higher, it will not go down here and touch this one.
551	00:55:34 --> 00:55:38	That's what smart money is looking for. It's looking for this lower quadrant or
552	00:55:38 --> 00:55:43	halfway point. Ideally you want to see it in the upper half, but if it's going
553	00:55:43 --> 00:55:48	to go below it, then it becomes essential for it to be respecting the
554	00:55:48 --> 00:55:54	lower quadrant and still leave that lower boundary point intact, not trade
555	00:55:54 --> 00:55:59	to it. That's what they want to see. Okay, so contrast that with everything
556	00:55:59 --> 00:56:02	else out there, and it's completely standing on its own. And that's what my
557	00:56:02 --> 00:56:06	challenge has always been. You know, I don't mind, I don't mind criticism. I
558	00:56:06 --> 00:56:09	don't mind skepticism. In fact, in fact, I encourage it. Look at the antics I put
559	00:56:09 --> 00:56:14	on social media. I want you to, I want you to think, Man, this guy's such a
560	00:56:14 --> 00:56:17	clown, I'm gonna go ahead and improve. And guess what? You end up proving that
561	00:56:17 --> 00:56:20	I'm right, and then you're a student. And that's how it works. That's, that's
562	00:56:20 --> 00:56:25	the way the exchange is here. I'm a market maker. I set you up. I give you a
563	00:56:25 --> 00:56:28	due to swing. I tell you to chase something for the purpose of you think
564	00:56:28 --> 00:56:31	you're going to expose me and try to make me look stupid, but you end up
565	00:56:31 --> 00:56:37	making me look every bit of intelligent I claim to be in the beginning. And it's
566	00:56:37 --> 00:56:45	fun, and you love it. So anyway, the liquidity here was taken. So this is
567	00:56:45 --> 00:56:50	your Judah swing. It's a deferred market delivery. Whereas initially you have
568	00:56:50 --> 00:56:55	this, it drops down and gives you a short term low, and then it rallies and
569	00:56:55 --> 00:56:58	they take out a short term swing high. Because what will what will traders
570	00:56:58 --> 00:57:04	think that do happen to be on side with maybe they're expecting the market to go
571	00:57:04 --> 00:57:06	higher the next day after a big, large range of clothes day, maybe they're
572	00:57:06 --> 00:57:10	right, okay? Because sometimes, you know, I was, I was right, you know, for
573	00:57:10 --> 00:57:14	a few months, not knowing what I was doing back in the 90s. I thought it was
574	00:57:14 --> 00:57:18	skill, admittedly, but I was humbled. Probably doesn't sound like I was
575	00:57:18 --> 00:57:24	humbled the way I talk, you know, on Twitter, but they'll see that as a
576	00:57:24 --> 00:57:28	breakout. Now, I was never really a breakout trader. It didn't make any
577	00:57:28 --> 00:57:32	sense to me, because to me, it just means your stock has to be farther away.
578	00:57:33 --> 00:57:36	But I get that there's a school of thought out there, and people out there
579	00:57:36 --> 00:57:40	claim to be profitable, that that's how they trade. They never use a stop loss,
580	00:57:40 --> 00:57:46	and it's just, it's gambling, in my opinion, but that is still a trading
581	00:57:46 --> 00:57:52	approach that is used in the marketplace. When they have that
582	00:57:52 --> 00:57:55	confirmation that they think is confirmation that the market's bullish,
583	00:57:55 --> 00:58:01	anyone and everyone that may take longs in this market, they're going to start
584	00:58:01 --> 00:58:04	looking for where their stop loss would be, and they're only lost the place at
585	00:58:04 --> 00:58:08	this point here, when there's a breakout. Is it this low? Can they hide
586	00:58:08 --> 00:58:15	that from you? Am I hiding it from you? I'm still seeing people tell them in the
587	00:58:15 --> 00:58:18	comment section that I'm hiding something. I'm literally explaining it.
588	00:58:18 --> 00:58:23	I'm explaining it so my son can understand it. And it's happening. It's
589	00:58:23 --> 00:58:29	it's unfolding as we talk about it. It's not hindsight. That low is your initial
590	00:58:29 --> 00:58:34	low on a day that is predisposed to go higher. So they're going to give them a
591	00:58:34 --> 00:58:42	trap. They're going to do what the predator goes down to the watering hole.
592	00:58:42 --> 00:58:45	That's that blue shaded area here. That's that buy side balance, cell sound
593	00:58:45 --> 00:58:48	efficiency. The Predator, at night time, gets its drink, okay, and then it
594	00:58:48 --> 00:58:56	leaves, then it comes back. After all the gazelles, the water buffalo, they
595	00:58:56 --> 00:59:00	all start coming right here because they saw the predator leave. They saw its
596	00:59:00 --> 00:59:06	foot tracks, like the scent, okay, the lions in the the things that could eat
597	00:59:06 --> 00:59:12	me, they are no longer at the waterhole. So they come and they go down air and
598	00:59:12 --> 00:59:21	they start drinking. And this is exactly where the predator stalks they want to
599	00:59:21 --> 00:59:25	eat. They're eating right in that low area there.
600	00:59:31 --> 00:59:38	So when it, when it gets below this low here, this is your hunting zone. You're
601	00:59:38 --> 00:59:44	in there trying to consume less informed traders. I do not care if they lost
602	00:59:44 --> 00:59:48	money on the other side of my trade. That's the whole reason why I'm in here.
603	00:59:48 --> 00:59:56	I want them to go down one swallow. Goodbye. You're consumed, devoured. I'm
604	00:59:56 --> 01:00:03	hunting you. I'm teaching you how to. Hunt? Does a lion look down on its prey
605	01:00:03 --> 01:00:11	before it kills and eats it. Does? It apologize? No, look what it does. It's
606	01:00:11 --> 01:00:18	swift about it. It tucks its head under its neck, goes right for the jugular and
607	01:00:18 --> 01:00:25	crushes its wind plate. But it also, when it messes with hyenas, it'll run
608	01:00:25 --> 01:00:31	them down and break their back just for the fun of it, because it wants all the
609	01:00:31 --> 01:00:38	other ones to see what that line does to that one. What do you think that is a
610	01:00:38 --> 01:00:45	metaphorical in trading. That's what people do when they know what they're
611	01:00:45 --> 01:00:48	talking about, and they go in front of laughing hyenas, and they show them
612	01:00:48 --> 01:00:55	every single day, I can break your spine and render you useless and toy with you.
613	01:00:55 --> 01:00:59	Oh, eventually consume you. But that's not what you're seeing here. This is
614	01:00:59 --> 01:01:05	engineering liquidity. When the market trades down in below this low, there has
615	01:01:05 --> 01:01:10	to be some level, because we're not trading zones, okay, we're not doing
616	01:01:10 --> 01:01:15	supply and demand zones. We're trading very specific price levels. So this is
617	01:01:15 --> 01:01:20	why this is not supply and demand. What levels would there be an interest in?
618	01:01:20 --> 01:01:27	Well, you have this low here. I know this is some good stuff, isn't it? Can't
619	01:01:27 --> 01:01:34	believe you're getting this for free. Thank my son for it. You're a jerk. You
620	01:01:34 --> 01:01:39	should have always been teaching this way. Okay? I said it already, so you
621	01:01:39 --> 01:01:40	don't have to leave a comment now.
622	01:01:49 --> 01:01:57	All right, so that sell side there, that's retail Smart Money waits for the
623	01:01:57 --> 01:02:01	algorithm, because it's two different things there. The algorithm is a price
624	01:02:01 --> 01:02:07	engine that drops price down here, that lets Smart Money accumulate their long
625	01:02:07 --> 01:02:20	positions at a time and place. Now, what's the missing pieces? Price? What
626	01:02:20 --> 01:02:25	price? Well, you have this five sign down, sell sign in efficiency. We grade
627	01:02:25 --> 01:02:29	that lower quadrant, consequent encroachment, upper quadrant and the
628	01:02:29 --> 01:02:35	high. Where does this low form? Just above, consequent encroachment. So if
629	01:02:35 --> 01:02:42	you are a trader that wants to scale in, you can't do this in certain prop firms.
630	01:02:42 --> 01:02:45	So you'll have to wait for what I'll show you in a second. You want to see it
631	01:02:45 --> 01:02:49	trade down into consequence. You can scale in, do one contract there, and if
632	01:02:49 --> 01:02:53	it gets down to lower project, you want to do one contract there, and then your
633	01:02:53 --> 01:02:57	stop needs to be at least two to three ticks below the buy side of balance,
634	01:02:57 --> 01:03:02	outside efficiency, because it can touch the low you we don't want to happen, but
635	01:03:02 --> 01:03:08	you have to afford yourself the potential seeing that deliver all the
636	01:03:08 --> 01:03:12	way down to that candlesticks high down here on the hourly chart. Okay, so the
637	01:03:12 --> 01:03:15	price levels you're looking for is a lower quadrant, and consequent
638	01:03:15 --> 01:03:21	encroachment meant any inefficiency between those two price points. Watch
639	01:03:23 --> 01:03:29	PhD level. Oh, my goodness, man, this is amazing. I know I actually have old
640	01:03:29 --> 01:03:34	floor traders and I have quote, unquote institutional guys in the comment
641	01:03:34 --> 01:03:39	section telling me this is mind blowing. Yes, of course it is. It's ICT talking
642	01:03:39 --> 01:03:43	about it. We talking about, are you surprised? So we have this price level
643	01:03:43 --> 01:03:47	here and this price level here, so when price trades into it there, that is a
644	01:03:47 --> 01:03:51	what as a potential entry. Now, would it be wise for you just because it trades
645	01:03:51 --> 01:03:59	down there on a down candle? Would that be wise to trade that? No, just simply
646	01:03:59 --> 01:04:03	because it's cheap and it's at the price level. Is that a good time to be a
647	01:04:03 --> 01:04:11	buyer? No, because we have to be a buyer after it shows us it's given enough
648	01:04:12 --> 01:04:15	enough information. We're not looking for confirmation per se. We're just
649	01:04:15 --> 01:04:19	looking for a little bit more, because this thing could still drop all the way
650	01:04:19 --> 01:04:22	down to the low of that buy side of balance, outside efficiency, which is on
651	01:04:22 --> 01:04:29	the hourly chart over here. Okay, so what we could look for is price trading
652	01:04:29 --> 01:04:33	down to consequent encroachment, and we know that it could potentially trade
653	01:04:33 --> 01:04:37	down to the lower quadrant too. So you could do one contract here, just to make
654	01:04:37 --> 01:04:41	sure you got something on. Now, if you're in a certain particular prop
655	01:04:41 --> 01:04:45	firm, you won't be able to add the next position where I'm going to show you,
656	01:04:45 --> 01:04:48	because it's they're going to say that you're, you know, I forgot what they
657	01:04:48 --> 01:04:52	call it. I saw other youtubers talking about that you're, you're averaging in,
658	01:04:53 --> 01:04:57	and you're adding to a losing trade. So they don't, apparently want me doing
659	01:04:57 --> 01:05:01	that. And I guess that's that's okay, but here's how. Here's how you turn that
660	01:05:01 --> 01:05:05	upside down against that. Okay, you see this price. You wait for it to trade to
661	01:05:05 --> 01:05:10	it, and then watch how it behaves. It trades to it returns back up into old
662	01:05:10 --> 01:05:14	low this portion of the city, which is this candle sticks low to this. Candle
663	01:05:14 --> 01:05:17	sticks high. The most sensitive price points are going to be in the lower half
664	01:05:17 --> 01:05:22	of it. That's this watch. These are all the things that you're supposed to be
665	01:05:22 --> 01:05:27	doing every night. Caleb and all of you that are watching, you want to look at
666	01:05:27 --> 01:05:30	all these price runs and see this is a signature. Does it get up there to the
667	01:05:30 --> 01:05:33	midpoint? No. So what does that mean? It's weak. So it's going to go to the
668	01:05:33 --> 01:05:38	next level. What level? This level down here, the lower quadrant of the Boston
669	01:05:38 --> 01:05:42	balance, cell sign, efficiency. So when we're seeing that, we wait for it to
670	01:05:42 --> 01:05:46	drop down, then this candle we open up. Trade right to this candle sticks low.
671	01:05:46 --> 01:05:50	What is that? That's an immediate rebalance. Every single one of you
672	01:05:50 --> 01:05:54	should be screenshot, I'll move out of the way. Screenshot, this candle sticks
673	01:05:54 --> 01:05:57	high right here. I'll move my cursor out of the way in a second. But what you're
674	01:05:57 --> 01:06:01	going to do is you're going to load a line on here and draw that out in time.
675	01:06:01 --> 01:06:06	Or you can draw it this way and annotate that as a immediate rebalance, and the
676	01:06:06 --> 01:06:11	market drops aggressively. Go ahead and take a shot of that right there. And
677	01:06:11 --> 01:06:18	then also this discount wick. Look what it's doing. It's always been in front of
678	01:06:18 --> 01:06:21	you, but you never, you never noticed it. So you have immediate rebalance plus
679	01:06:21 --> 01:06:25	consequent encroachment. Oh my goodness. And it's also trading, where near
680	01:06:26 --> 01:06:29	consequent encroachment of the bison, amount, cell, sign, efficiency. So
681	01:06:29 --> 01:06:33	that's not one thing, that's not two things, that's three things, and the
682	01:06:33 --> 01:06:37	products goes down and hits the lower quadrant. And trace this a little bit
683	01:06:37 --> 01:06:44	past it. Now here's where it gets on if we don't want to see that lower quadrant
684	01:06:44 --> 01:06:48	traded too. Because in an ideal world, ultimately, that's how it should be. If
685	01:06:48 --> 01:06:53	that's the case, I know you're I know you're watching this, thinking, damn,
686	01:06:53 --> 01:06:58	this guy's good. Look at this. It's so it's so amazing, right? I know it's,
687	01:06:58 --> 01:07:02	it's freaking boring, but I love that. You get excited about it. I get off on
688	01:07:02 --> 01:07:06	it. I love living vicarious through all of you experiencing it for the first
689	01:07:06 --> 01:07:12	time. So this candlestick right here hits the lower quadrant. Let it sweep
690	01:07:12 --> 01:07:15	this level, that lower quadrant of the bison valve cell sign efficiency over
691	01:07:15 --> 01:07:20	here. It does that here, and then we see what the market trade higher soon as
692	01:07:20 --> 01:07:27	this candlestick right there, that opening price, plus the volume
693	01:07:27 --> 01:07:33	imbalance, that's there, see that there's two PB arrays, two of them after
694	01:07:33 --> 01:07:38	it's hit the lowest level that we want to see trade to, and it's already worked
695	01:07:38 --> 01:07:43	below it a little bit. Now we have the market trade higher right there. That
696	01:07:43 --> 01:07:48	makes that candlestick right there, and these series of candlesticks, here's
697	01:07:48 --> 01:07:52	some order, block theory, okay, there's a chapter coming out. Ready? You ready
698	01:07:52 --> 01:08:01	for it? This opening price? Oh, this is the good stuff. I am going to start
699	01:08:01 --> 01:08:04	writing this stuff down. I this stuff down. I wasn't interested until you
700	01:08:04 --> 01:08:09	started talking about this ICT. Now I'm going to write this stuff down, and then
701	01:08:09 --> 01:08:18	you have this one there. This is the change in the state of delivery, right
702	01:08:18 --> 01:08:24	there. Now, why? What's the what's the point of that? Because we've already hit
703	01:08:24 --> 01:08:27	the lowest level that we want to see, traded to in that buy side of balance,
704	01:08:27 --> 01:08:34	cell sign efficiency. See that we below it, traded higher. And then what happens
705	01:08:34 --> 01:08:40	the very next candle we open up here. So there's a separation between this candle
706	01:08:40 --> 01:08:47	sticks close, and this candle sticks open. See that? So this makes this what
707	01:08:48 --> 01:08:54	at the time of this opening? That makes this a vacuum block where there's
708	01:08:54 --> 01:08:59	there's no price at all between these two candlesticks touching, except for
709	01:08:59 --> 01:09:05	this wig. It trades down to this candle sticks close. That is an immediate
710	01:09:05 --> 01:09:11	rebalance, because the wick is a gap. So we trade down immediately there, and
711	01:09:11 --> 01:09:16	then price starts to deliver all the way up to the first of all these down closed
712	01:09:16 --> 01:09:23	candles. This is the high of your entire order. Block market opens up here,
713	01:09:23 --> 01:09:28	trades down into the order block here, and then start setting price higher.
714	01:09:32 --> 01:09:36	Reaching up creates a swing high, towards the high end of that opening
715	01:09:36 --> 01:09:45	range, gap, sell side, taken off that low low takes out that low they are
716	01:09:45 --> 01:09:49	cumulating what sell side to send it where, higher so.
717	01:10:03 --> 01:10:11	Now, if you're looking on a day, there wasn't a very large range day, like,
718	01:10:11 --> 01:10:15	say, for instance, yesterday, we didn't have this monster of a daily
719	01:10:15 --> 01:10:18	candlestick. Say, it was just within the realm of an average daily range, maybe
720	01:10:18 --> 01:10:23	just a little bit above it you could be trading the morning session, and you
721	01:10:23 --> 01:10:28	would not have to incur all the hardships that the initial 30 minutes of
722	01:10:28 --> 01:10:34	trading can afford you, like it did today. And also you're more inclined to
723	01:10:34 --> 01:10:38	see a more protracted run in price. That means where we took out the short term
724	01:10:38 --> 01:10:48	high here. There this high on the one minute chart, is this line here on the
725	01:10:48 --> 01:10:52	15 second chart. So we had high, slightly lower high, so relative equal
726	01:10:52 --> 01:11:02	highs. They rallied it and then sank it. All of this, all this type of price
727	01:11:02 --> 01:11:07	action. They're all characteristic of a trading session in the morning after a
728	01:11:07 --> 01:11:14	large range day. So my question to you is this, do you want to trade when the
729	01:11:14 --> 01:11:19	market has these things that you have to worry about when you're experience
730	01:11:19 --> 01:11:25	levels a lot lower, because you're just now starting to learn about or do you
731	01:11:25 --> 01:11:30	see the advantages of seeing these characteristics? Okay? And this is what
732	01:11:30 --> 01:11:33	I should have done in the beginning. When I was doing paid mentorship in 2016
733	01:11:35 --> 01:11:39	I expected the people, because they paid that, they would just simply look at the
734	01:11:39 --> 01:11:43	logic, look at what I'm showing them in real time, price action and teaching
735	01:11:43 --> 01:11:46	them that it was a graduated understanding. They can't learn it all
736	01:11:46 --> 01:11:49	in one time. There's no way I could teach everything in one session. There's
737	01:11:49 --> 01:11:53	so many things. I mean, you want the highest understanding of what price is
738	01:11:53 --> 01:11:56	likely to do and why it should algorithmically deliver that can't be
739	01:11:56 --> 01:12:00	delivered in these little, short videos that you're asking for. You have to
740	01:12:00 --> 01:12:03	treat it like college. This is the college degree that you really need.
741	01:12:04 --> 01:12:09	It's not the stuff they they sell you in those those indoctrination centers. So
742	01:12:11 --> 01:12:16	is it beneficial? This was the question I should have led into with my first
743	01:12:16 --> 01:12:19	teaching, and should have repeated every single day for the first three months
744	01:12:19 --> 01:12:26	back in 2016 through paid mentorship, I'm going to show you conditions in a
745	01:12:26 --> 01:12:30	good, low resistance market condition, and I'm going to show you
746	01:12:31 --> 01:12:36	characteristics and price delivery in high resistance conditions. So that
747	01:12:36 --> 01:12:43	means you're going to see what it looks like on both sides of the spectrum. Now
748	01:12:43 --> 01:12:47	the advantages are, this is what you don't realize when you start studying
749	01:12:47 --> 01:12:53	with me, is when, when price is in a condition or characteristic that's
750	01:12:53 --> 01:12:58	defined by in the morning session, after a large range day, I've taught this.
751	01:12:58 --> 01:13:03	I've never deviated from this. And I this was something I picked up in 1995 I
752	01:13:03 --> 01:13:07	do not deviate from this every single time after, it's a large range day, I
753	01:13:07 --> 01:13:14	always remind my students of this the morning session after, you have to be
754	01:13:14 --> 01:13:20	extremely careful not to get all caught up and think that you have, you know,
755	01:13:20 --> 01:13:23	everything figured out, not in the beginning. Again, the beginning, you're
756	01:13:23 --> 01:13:26	going to you're not going to know what you think you you should know, and
757	01:13:26 --> 01:13:31	you're going to discover that you don't know what you should have known, because
758	01:13:31 --> 01:13:36	your your experience levels is not there yet. And that's a normal thing. But do
759	01:13:36 --> 01:13:42	you agree? Do you agree that it is advantageous. That means it's helpful to
760	01:13:42 --> 01:13:51	you. It's helpful for you to recognize that this watering hole has a whole lot
761	01:13:51 --> 01:13:59	more predators around it than another time when there is less foot traffic on
762	01:13:59 --> 01:14:02	the ground, in the sand, you can see that there's, there hasn't been a whole
763	01:14:02 --> 01:14:06	lot of activity around the world, so you're probably going to be able to make
764	01:14:06 --> 01:14:12	it out of the out of the scene after you get your drink in, in plain terms. It's
765	01:14:12 --> 01:14:16	this, do you think it's helpful to you to know when you're probably going to
766	01:14:16 --> 01:14:24	lose money easily? What's going to make your trade harder to pan out. So you
767	01:14:24 --> 01:14:29	want to know what it looks like to trade in low resistance, liquidity runs. Okay,
768	01:14:29 --> 01:14:33	yeah, I want to teach it to you, and I have been. But the easiest way to
769	01:14:33 --> 01:14:38	determine what that is is by showing you what it looks like when it's harder. But
770	01:14:38 --> 01:14:41	you want to avoid those things. They'll only talk to me when it's going to be
771	01:14:41 --> 01:14:44	easy. ICT, just tell me what you know the market's going to do. So just tell
772	01:14:44 --> 01:14:49	us what the market's going to do. I am but you're not liking the way that
773	01:14:49 --> 01:14:53	medicine tastes, and instead of swallowing you're spitting it out. And
774	01:14:54 --> 01:14:58	that's going to be used in sound clips, and it wasn't intended for that purpose,
775	01:14:58 --> 01:15:04	but you get what I'm saying. So the point is this, by learning the difficult
776	01:15:05 --> 01:15:09	pathways to what you're trying to get, you'll also know that there are certain
777	01:15:09 --> 01:15:14	pathways that are actually a lot more smoother. There's no rocks in it. It's
778	01:15:14 --> 01:15:19	soft, it's soft soil. There's no thorn bushes. It's a little bit wider. You can
779	01:15:19 --> 01:15:23	see down the pathway a little bit further, but the only way you can
780	01:15:23 --> 01:15:27	appreciate that way of doing it is by walking through the bramble bush,
781	01:15:27 --> 01:15:32	walking through the stony pathways that have lots of things. It's going to
782	01:15:32 --> 01:15:35	scratch you all up. It's going to feel like I don't want to do this. That's
783	01:15:35 --> 01:15:41	exactly how you should study because trading is going to present those
784	01:15:41 --> 01:15:44	characteristics to you, if you stay in this industry long enough, you're going
785	01:15:44 --> 01:15:48	to see that happen. There's going to be periods where your trading is going to
786	01:15:48 --> 01:15:55	be like that, but there are specific and generic trading times where the market
787	01:15:55 --> 01:15:59	will present these unfortunate characteristics where you just can't go
788	01:15:59 --> 01:16:03	in in one entry and keep pyramiding, and it's never going to retrace on you, and
789	01:16:03 --> 01:16:07	just this keeps running in your favor, you're going to be in like quicksand
790	01:16:07 --> 01:16:11	initially, where it's like, it's hard to feel what it's doing. And if you watch
791	01:16:11 --> 01:16:16	live streamers, I mean, maybe they'll do it less now, because I taught today, but
792	01:16:17 --> 01:16:22	because they live stream, they feel obligated to perform for you. And to me,
793	01:16:22 --> 01:16:26	that's one of the weaknesses of of live streaming, because if you're trying to
794	01:16:26 --> 01:16:32	constantly promote something or prove that you can do something, you're not
795	01:16:32 --> 01:16:39	making it about sound, low risk, high probability trading. You're you're in
796	01:16:39 --> 01:16:43	the business of entertaining. I'm not here to entertain you. I'm not here for
797	01:16:43 --> 01:16:48	that. I'm here to teach my son how to navigate this stuff. And there's going
798	01:16:48 --> 01:16:53	to be times, even though he's my son, even though he's he has the access to
799	01:16:53 --> 01:16:59	Enigma, which is me, I'm Enigma, there is no higher order of being able to read
800	01:16:59 --> 01:17:05	price. This son of mine has all those those advantages, but he still has the
801	01:17:05 --> 01:17:09	likelihood of falling victim to the conditions of the marketplace that he
802	01:17:09 --> 01:17:14	might think he sees something in it, because it's myopic experience. It's
803	01:17:14 --> 01:17:19	very limited in the beginning, and males tend to think that they can run faster
804	01:17:19 --> 01:17:24	before they learn how to crawl while I don't believe that that's the case for
805	01:17:24 --> 01:17:29	my son, I'm removing any of that enticement by reminding him and teaching
806	01:17:29 --> 01:17:35	him that after large Range Days on a daily chart, the next morning session,
807	01:17:35 --> 01:17:40	that means all the way through lunch. Now think about it. How do you fight
808	01:17:40 --> 01:17:43	FOMO, how do you fight the fear of missing out? Michael, how do you teach
809	01:17:43 --> 01:17:47	your students to wrestle with all this? Because you have all these things, and
810	01:17:47 --> 01:17:53	people can teach your stuff because they can use hindsight moves and entices
811	01:17:53 --> 01:17:57	people to take new trades. And I feel like I'm missing out when I see your
812	01:17:57 --> 01:18:01	trade executions. You're all worrying about the wrong things instead of
813	01:18:01 --> 01:18:07	saying, How can I know that I'm doing the right thing by sitting on my hands?
814	01:18:11 --> 01:18:17	The richest traders in the world are the ones that have well written plans of
815	01:18:17 --> 01:18:24	inactivity. I'm going to say that in another way, the richest traders are the
816	01:18:24 --> 01:18:30	ones that have planned stillness. That means they're not trying to trade. Sure
817	01:18:30 --> 01:18:36	these markets are moving around. They absolutely are moving around, but
818	01:18:36 --> 01:18:41	they're not in here to prove that they can navigate every fluctuation they want
819	01:18:41 --> 01:18:46	to be in the markets when its highest degree of probability is in their favor,
820	01:18:47 --> 01:18:53	not in the markets favor. Do you want to go in a condition where you have the
821	01:18:53 --> 01:18:59	highest probability of having your ass torn off, or that you have done your due
822	01:18:59 --> 01:19:03	diligence and you have waited to a proper time when there is no large range
823	01:19:03 --> 01:19:08	day, the previous day that would negate you trading in the morning session,
824	01:19:08 --> 01:19:13	because your experience level is not there. I'm not saying that my advanced
825	01:19:13 --> 01:19:16	students have been around. They have matured after being with me for a while.
826	01:19:16 --> 01:19:20	They knew their model. There are trades that you can take. I'm not saying that
827	01:19:20 --> 01:19:23	you should not all trade at any even time ever trading on the morning
828	01:19:23 --> 01:19:27	session, after lunch or anything. I'm not saying that. What I'm saying is, as
829	01:19:27 --> 01:19:34	a student, and I'm talking to my son, he can't do this yet. So if you're like
830	01:19:34 --> 01:19:37	him, and you just can't walk out there and take down a pound of flesh and
831	01:19:37 --> 01:19:41	trading every single day and know what you're trading for. If you can't do
832	01:19:41 --> 01:19:47	that, then you should not be engaging in the morning session after a large range
833	01:19:47 --> 01:19:48	day. How hard is that? It's
834	01:19:49 --> 01:19:53	a very simple thing, but it's hard to communicate. Because people, you know, I
835	01:19:53 --> 01:19:57	have lots of shoes that just simply will not listen to that, and they complain I
836	01:19:57 --> 01:20:00	can't make any money. I can't do this. I can't do that. This. Stuff is so hard.
837	01:20:00 --> 01:20:03	What are you doing? Well, I took this trade here. What day is today? It's the
838	01:20:03 --> 01:20:06	day after yesterday. It's a large range day. And I'm trying to trade in the
839	01:20:06 --> 01:20:10	session here, and I'm going against what would normally be expected as a bias,
840	01:20:10 --> 01:20:14	and everything's wrong. So that tells me they didn't do anything right in terms
841	01:20:14 --> 01:20:18	of studying. They didn't journal, they didn't talk about in their own
842	01:20:18 --> 01:20:23	annotations what they struggle with so that they can identify what they are.
843	01:20:23 --> 01:20:26	They're walking around with blinders on, and they just want things that work
844	01:20:26 --> 01:20:30	perfectly for them, and it doesn't work that way. I wasted years doing that
845	01:20:30 --> 01:20:36	stuff, expecting something, you know, just to click, and it didn't click. It
846	01:20:36 --> 01:20:44	didn't click. I had to have an intervention. They'll call it that way.
847	01:20:45 --> 01:20:52	And then things started being visible to me. But you have to appreciate when the
848	01:20:52 --> 01:20:59	markets are a little bit harder, when they're being held at bay, where they
849	01:20:59 --> 01:21:04	are not allowed to just run around and do whatever they want to do. As soon as
850	01:21:04 --> 01:21:08	you can recognize that condition in the marketplace, the better. And as soon as
851	01:21:08 --> 01:21:11	you recognize it, turn your charts off and walk away and come back the next
852	01:21:11 --> 01:21:14	session. And since it's the morning session here today, the easiest thing
853	01:21:14 --> 01:21:19	would be to turn off your charts, let it do whatever it wants to do, all through
854	01:21:20 --> 01:21:25	until 130 and afternoon later today, and then sit down determine where the
855	01:21:25 --> 01:21:29	highest, high and the lowest low of the day is. Look at the morning session,
856	01:21:29 --> 01:21:34	high the low of the day in the morning session, and then what was the highs
857	01:21:34 --> 01:21:40	that was formed in between those two reference points, the next highest or
858	01:21:40 --> 01:21:45	the next lower, highest and the next higher low. Inside that range that
859	01:21:45 --> 01:21:49	defines the highest, high and lowest low at 130 there's there's two buy sides
860	01:21:49 --> 01:21:53	that you'll have and there's two sell sides that you'll have. Chances are it's
861	01:21:54 --> 01:21:57	not going to take out both of the highest, high and lowest low, again,
862	01:21:57 --> 01:22:03	going into the pm session, but it will gravitate to one of them. The question
863	01:22:03 --> 01:22:08	is, which one do you think without even being at 130 yet, which one is it most
864	01:22:08 --> 01:22:13	likely going to do? I want you to write that down in your journal and put the
865	01:22:13 --> 01:22:18	time that you wrote down, and then at 130 watch and see what price does
866	01:22:19 --> 01:22:22	discover where the two buy side liquidities are and two sell side
867	01:22:22 --> 01:22:25	liquidities are. You have your lunch high, your lunch low, and you have the
868	01:22:25 --> 01:22:29	high today and the low today. That's what you walk into the afternoon session
869	01:22:29 --> 01:22:34	doing. It's the same thing that you would do in the London session. You're
870	01:22:34 --> 01:22:40	just going to use the previous trading session the same way. I don't need to be
871	01:22:40 --> 01:22:43	up at London to do I just told you how to do it. Right? Do it right there. The
872	01:22:43 --> 01:22:47	previous day's high and low, and then the high and the low that's inside that
873	01:22:47 --> 01:22:51	previous day's range that's formed up to two o'clock in the morning, Eastern
874	01:22:51 --> 01:22:58	Time, that's what you're looking for. And then tomorrow, if we don't have a
875	01:22:58 --> 01:23:01	large range data tomorrow, I'm sorry if we don't have a large range day today,
876	01:23:01 --> 01:23:07	tomorrow's morning session will be easy. So you can see how all these things
877	01:23:07 --> 01:23:10	because you have protocols. You're learning protocols. You're learning my
878	01:23:10 --> 01:23:14	protocols and the things and processes that determine when I should do
879	01:23:14 --> 01:23:19	something and when I shouldn't do something. When do I push the pedal to
880	01:23:19 --> 01:23:23	the floor and just go all out. When should I just pump the brakes and slow
881	01:23:23 --> 01:23:26	down? And when should I just turn the ignition off, park it and go do
882	01:23:26 --> 01:23:31	something else? How often have you thought about that for your trading,
883	01:23:31 --> 01:23:36	instead of just go, go, go, let's go. Let's effing go. Let's effing go.
884	01:23:36 --> 01:23:41	Everybody wants to do that, and you have to learn to acknowledge when the
885	01:23:41 --> 01:23:47	market's saying it's it's amateur hour right now. So anybody that comes in here
886	01:23:47 --> 01:23:52	is getting slaughtered. Do you want to go to a rave where everybody's most
887	01:23:52 --> 01:23:57	likely getting murdered? You want to go there? I want to go to the one that has
888	01:23:57 --> 01:24:06	that experience, okay? Versus one. It's just got great music. It's a really
889	01:24:06 --> 01:24:09	good, healthy environment. There's no drugs, there's no solicitation for any
890	01:24:09 --> 01:24:12	kind of thing up there, legal. And you just have a really good time with
891	01:24:12 --> 01:24:16	friends and listen to good music. Obviously you want to go to the second
892	01:24:16 --> 01:24:22	one, right? So treat the market like a slaughterhouse. You don't want to be in
893	01:24:22 --> 01:24:29	here as a sheep, because you're going to get slaughtered. You're not going to
894	01:24:29 --> 01:24:32	come out with all of your appendages intact. You're going to lose something.
895	01:24:32 --> 01:24:36	You're going to leave something in here if you, if you try to trade on these
896	01:24:36 --> 01:24:41	days with no no understanding and you disregard what I'm teaching the morning
897	01:24:41 --> 01:24:46	session, after a large range day, you have to be either dialed in and know
898	01:24:46 --> 01:24:50	exactly what you're looking for and you're you're none of you are there yet.
899	01:24:51 --> 01:24:55	None of you are there yet. Okay, I promise you you're not there. So it's
900	01:24:56 --> 01:25:01	good medicine, and it's responsible of me as a educator. To tell you to simply
901	01:25:01 --> 01:25:04	sit still and don't do anything, tape, read it. That means you're not even demo
902	01:25:04 --> 01:25:10	trading it. I don't know. Maybe you've probably done some demo trading this
903	01:25:10 --> 01:25:14	morning. Maybe, maybe you did something right. Maybe do something wrong. Chalk
904	01:25:14 --> 01:25:20	it up as bullshit. And I mean that because you probably don't know what you
905	01:25:20 --> 01:25:24	did and why you did it, and you're going to think that it means that you're
906	01:25:24 --> 01:25:27	better than you really are, and you're going to have that inflated state of
907	01:25:27 --> 01:25:31	mind about yourself, and you're going to go and repeat the same mistake next time
908	01:25:31 --> 01:25:34	you have a very large range day, you're going to go in there and try to trade
909	01:25:34 --> 01:25:37	again. But you might do it with a funded account. You might do it with real
910	01:25:37 --> 01:25:43	money, and then now the outcome is unfavorable, and you're gonna be upset.
911	01:25:43 --> 01:25:48	And you can avoid all that. You can avoid saying, I'm gonna never do that
912	01:25:48 --> 01:25:57	again by simply never doing it the first time. So let's, let's take a look at
913	01:25:57 --> 01:26:01	what we have here, and I'm gonna close it up because I went a little bit past I
914	01:26:01 --> 01:26:05	really did want to go and close it at 1130 but there's a lot of points that I
915	01:26:05 --> 01:26:18	want to make sure Caleb on this stuff here. Alrighty, so we have and let's
916	01:26:18 --> 01:26:23	work on this charter here. Let's go to a 15 minute time frame, take this off.
917	01:26:37 --> 01:26:42	All right, I do like the fact that we started the day off going deeper lower.
918	01:26:44 --> 01:26:50	We took out the minor buy side. We only had a shallow retracement. We didn't
919	01:26:50 --> 01:26:53	come down and take out the low of the day, which is all positive for the
920	01:26:53 --> 01:26:59	afternoon session. So as long as we start working towards any consolidation,
921	01:26:59 --> 01:27:05	but not taking out that low my expectation be enjoy lunch, just relax.
922	01:27:06 --> 01:27:11	Come back to your charts around 115 1:30pm Eastern Standard Time, okay, and
923	01:27:11 --> 01:27:18	then observe where the highest high and the lowest low of the day is. 115 in
924	01:27:18 --> 01:27:23	time frame. Then drop down to a five minute chart, and then you'll see lower,
925	01:27:23 --> 01:27:27	smaller, short term highs and lows that are inside the high and the low, the
926	01:27:27 --> 01:27:32	debt, or respectively, high and low debt. And it may be a slightly higher
927	01:27:32 --> 01:27:37	high, but whatever that high is, at 130 you note that, and then you note the
928	01:27:37 --> 01:27:42	low, and then you use either the the lower high that you can see maybe on a
929	01:27:42 --> 01:27:45	15 minute chart. Minute chart or chart rather or the five minute chart, if you
930	01:27:45 --> 01:27:49	can't see it obviously, on a five minute chart, you drop down to a one minute
931	01:27:49 --> 01:27:54	chart, you'll see the lower high that's less than the highest, the high of the
932	01:27:54 --> 01:27:59	day, or the lowest of the low. So you're going to have two layers of buy side and
933	01:27:59 --> 01:28:05	sell side. Or you'll watch that form as 130s trading unfolds, going into two
934	01:28:05 --> 01:28:10	o'clock, and then at two o'clock, what you'll see is the pm session unfold, and
935	01:28:10 --> 01:28:17	it'll start to to traverse to either the buy side of the sell side. And I'm
936	01:28:17 --> 01:28:21	inclined to think that they're going to reach for that 19,006 95 level
937	01:28:21 --> 01:28:27	eventually. Does it need to trade it today? No. So in my mind, I want to see
938	01:28:27 --> 01:28:33	them give me a market structure and opportunities for the market to build
939	01:28:33 --> 01:28:39	that narrative in price. And at 130 I'll be looking for that. And if I have
940	01:28:39 --> 01:28:44	something that I like, I will engage it, I will trade it, I will annotate it, I
941	01:28:44 --> 01:28:47	will go through all the motions of doing that. And then you'll see another
942	01:28:47 --> 01:28:52	example. Okay, so I'm literally tipping my hand to you, telling you how to
943	01:28:52 --> 01:28:57	navigate it on problematic sessions, which is after very large range days in
944	01:28:57 --> 01:29:01	the morning session, and then what I use as a protocol, it's going to be the same
945	01:29:01 --> 01:29:04	stuff in the book, folks. So I'm telling you, you do not need to buy my books.
946	01:29:04 --> 01:29:08	Don't, don't wait for a book and then miss all this opportunity to learn
947	01:29:08 --> 01:29:13	because I'm doing it dynamically over the charts, live like before it happens.
948	01:29:13 --> 01:29:16	I'm telling you, on all these little, tiny, little time frames, how it should
949	01:29:16 --> 01:29:21	be behaving. What is it? What's it doing it for? Why is it going here? Why should
950	01:29:21 --> 01:29:24	it behave that way? And then I'm telling you what I'm going to do in the
951	01:29:24 --> 01:29:28	afternoon. Every single time I trade in the afternoon session, it's what I just
952	01:29:28 --> 01:29:35	explained to you that never changes. It never ever changes. All I want to see is
953	01:29:35 --> 01:29:39	where the liquidity is for the highest high and the lowest low of the day. And
954	01:29:39 --> 01:29:45	then I want to wait and see, does it make us shorter? High or a higher low,
955	01:29:45 --> 01:29:51	basically, than the low of the day. And it will go to one of them. And price
956	01:29:51 --> 01:29:54	isn't going to hide where it wants to go. It's going to be obvious what it's
957	01:29:54 --> 01:29:58	going to aim for, and that sets up the framework for the afternoon session. Now
958	01:29:58 --> 01:30:07	what makes it exciting is. In the last hour or or so, the opportunity for the
959	01:30:07 --> 01:30:14	market to expand. Okay? I saw somebody say the other day, generally the last
960	01:30:14 --> 01:30:17	hour of the day, you don't see the market trade and make a new high the day
961	01:30:17 --> 01:30:23	or low of the day. That's bullshit. That is absolute bullshit, because that's
962	01:30:23 --> 01:30:28	where it's creating the high and low of the day, and then towards the last 45
963	01:30:28 --> 01:30:32	minutes, that's when it usually comes off of whatever high or low of the day,
964	01:30:32 --> 01:30:38	and it goes into settlement. There's four macros in that last hour. Okay, so
965	01:30:39 --> 01:30:43	technically, in five if you if you really want to be dogmatic about you
966	01:30:43 --> 01:30:47	know, at the two o'clock bleed over into three o'clock, but that's another
967	01:30:47 --> 01:30:55	discussion. But the the last hour of the day is them actually pricing in the
968	01:30:55 --> 01:31:01	extreme, higher low of the day on big expansion candles, like a day where we
969	01:31:01 --> 01:31:05	open near the low and close at the high that last hour of trading, that's what's
970	01:31:05 --> 01:31:10	giving you that setup. It's going to reach and make a higher high when it's
971	01:31:10 --> 01:31:14	bullish, or it's going to reach and make a lower low when it's bearish. And in
972	01:31:14 --> 01:31:17	that last 45 minutes, you're basically trying to get a read for how they're
973	01:31:17 --> 01:31:22	going to settle in. Gotta settle at the high. Are they going to come off that
974	01:31:22 --> 01:31:27	high and come back down into the range? And that's what my focus is. That's what
975	01:31:27 --> 01:31:31	I'm trying to trade with you. Don't ever need to trade the morning session. Ever
976	01:31:32 --> 01:31:37	the easier trades always are going to be in the afternoon. The pm trading session
977	01:31:38 --> 01:31:43	is the easiest trading session for index features. Always, always, always, it's
978	01:31:43 --> 01:31:47	the easiest, absolute easiest, because you have all the daily range already in
979	01:31:47 --> 01:31:50	there. Now, are you going to get the lions portion of the moves? Absolutely
980	01:31:50 --> 01:31:55	not. But that's what, that's what, that's what everybody wants in the
981	01:31:55 --> 01:31:58	beginning. They want the lions portion when you're not going to get the lions
982	01:31:58 --> 01:32:04	portion, but to get in there and get consistent setups that are going to
983	01:32:04 --> 01:32:13	yield to you that pm session is always ripe for the picking. So that's going to
984	01:32:13 --> 01:32:17	be it for today. I covered a lot of stuff. I went through things that are
985	01:32:17 --> 01:32:22	going to help you avoid drawdown, losing frustration, getting stopped out or
986	01:32:22 --> 01:32:26	chopped up, as they call it. The job is real, right? Patrick, the the
987	01:32:32 --> 01:32:36	benefits of knowing this information, you can't appreciate that yet, so you
988	01:32:36 --> 01:32:41	start working with every single day, whether you're trading with a funded
989	01:32:41 --> 01:32:47	account, funded account challenge or life or demo, you're going to see the
990	01:32:47 --> 01:32:51	problems of working with the morning session after a large range day. And if
991	01:32:51 --> 01:32:56	you don't log these events and characteristics in your journal, you
992	01:32:56 --> 01:33:00	won't retain them. You'll get caught up in the FOMO. You'll be watching
993	01:33:00 --> 01:33:03	something on social media. Maybe I might inspire you because I did a trade and I
994	01:33:03 --> 01:33:06	recorded it, or I said something in a live stream. You're like, Oh, I gotta do
995	01:33:06 --> 01:33:10	something. You know, that's the worst thing to do, because you didn't plan
996	01:33:10 --> 01:33:14	that trade. You're impulsively reacting to some kind of stimuli, and never take
997	01:33:14 --> 01:33:18	any trades when it's like that. Okay, so that's going to be it for today, until
998	01:33:18 --> 01:33:20	I'll talk to you tomorrow. Lord willing be safe. Do.

ICT YT - 2024-09-12 - ICT 2024 Mentorship - Lecture 26

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