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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.