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ICT YT - 2024-09-20 - ICT 2024 Mentorship - Lecture 31

Last modified by Drunk Monkey on 2024-09-25 09:33
1 00:01:16 --> 00:01:17 ICT: Just checking The audio
2 00:01:22 --> 00:01:31 check. Alright, so we are looking at the the difference between CFDs, which are
3 00:01:31 --> 00:01:37 not legally traded in America. So all you gurus out there that show your
4 00:01:37 --> 00:01:48 multiple MT four screenshots of the same market. You got 50,000 per per profit
5 00:01:48 --> 00:01:54 line. Nobody believes that crap, but the pretend. Pretend is fun, right? So for
6 00:01:56 --> 00:01:59 the folks that are outside the US, but you want to learn what it is I'm
7 00:01:59 --> 00:02:07 teaching with the futures market. How can you participate? How can you be a a
8 00:02:07 --> 00:02:11 player, if you will, in reading price action and learning how to do that. So
9 00:02:12 --> 00:02:18 if we know that I am not going to be trading the CFDs, I won't even push the
10 00:02:18 --> 00:02:21 button on that. Okay, I'm not going to do that, but it's not necessary that I
11 00:02:21 --> 00:02:26 do, because I'm going to show you exactly how to do everything. You see me
12 00:02:26 --> 00:02:34 dealing with the futures contract. The CFDs, they trade in, you know, 20, 24/7,
13 00:02:35 --> 00:02:43 they go around the clock. There's a separation with the settlement price at
14 00:02:43 --> 00:02:50 4:14pm Eastern Time. And then there is the 930 opening. And we can see that
15 00:02:50 --> 00:02:57 relatively easy when we're looking at the regular trading hours. So right now
16 00:02:57 --> 00:03:01 I'm looking at the micro emitting NASDAQ. This is for December's contract,
17 00:03:03 --> 00:03:07 and I'm going to show you the recording. I'm not sure what was going on with the
18 00:03:09 --> 00:03:14 Twitter or x app this morning. I tried to show the recording of me executing
19 00:03:15 --> 00:03:19 this morning and all the business I'm about to show you, but I don't know why
20 00:03:19 --> 00:03:23 it wouldn't. It wouldn't let me upload it. So I don't know if I'm on the bad
21 00:03:23 --> 00:03:30 list over there or what, but it'll be part of Caleb's channel upload tonight,
22 00:03:30 --> 00:03:33 so that way you can watch it there. It just, it's gonna be a real brief thing,
23 00:03:33 --> 00:03:39 but I kind of like what. I'll outline it here and also show you the same similar
24 00:03:39 --> 00:03:47 things that's shown in a CFD for NASDAQ. So if you're not an American and you can
25 00:03:47 --> 00:03:52 trade through like a Forex broker, I'm not trading Forex anymore. I'm not
26 00:03:52 --> 00:03:56 enticing you to trade Forex. I'm not trying to tell you you should trade
27 00:03:56 --> 00:04:01 that. I'm not telling you you should trade the CFDs. But if you can't follow
28 00:04:01 --> 00:04:06 along with the actual futures market. You can get as close as you can, but
29 00:04:06 --> 00:04:09 they're not going to mark the market. Now. I'll show you what that means in a
30 00:04:09 --> 00:04:14 moment, but they're close enough for you to do studies. Let's say it that way.
31 00:04:14 --> 00:04:18 Okay, so we can all agree that we're just studying price action and not
32 00:04:18 --> 00:04:21 trying to give you trade advice. I'm not trying to give you investment advice,
33 00:04:21 --> 00:04:24 but this is how you bridge the gap between the two. Okay, so that way
34 00:04:24 --> 00:04:29 you're not out like orphans. ICT left us, we're in forex and these trading
35 00:04:29 --> 00:04:33 futures, and we don't trade futures anymore. CFDs, you can trade them
36 00:04:34 --> 00:04:37 wherever you're at. If you're not in America, you can probably trade them
37 00:04:37 --> 00:04:41 now. Are some, there are some countries that are cracking down and making it
38 00:04:41 --> 00:04:46 illegal for people to do it at all. Okay, and I talked about that in Twitter
39 00:04:46 --> 00:04:53 spaces about a year ago, so you might want to think about that. But the the
40 00:04:53 --> 00:04:59 mini contract for NASDAQ every handle move that means four ticks up or down
41 00:04:59 --> 00:05:05 you. It's taking or adding to your account in the amount of $20 US dollars
42 00:05:06 --> 00:05:14 in a micro it's $2 for every four ticks or one handle. So a handle would be like
43 00:05:14 --> 00:05:26 20,000 010, to 20,000 011, and if you were long one contract, that would be
44 00:05:26 --> 00:05:34 one increase of a handle, or four ticks or $20 if it went one tick, I'm sorry,
45 00:05:34 --> 00:05:39 four ticks below your entry in your long you would be debited mark to market
46 00:05:40 --> 00:05:48 negative $20 for a micro. It's only $2 so it affords the the student to focus
47 00:05:48 --> 00:05:54 and study in this medium, not the Mini. Okay? And for all of you that are
48 00:05:54 --> 00:05:58 trading in these southern account company things, if you're not using this
49 00:05:58 --> 00:06:01 like I'm showing you're really doing it wrong? Because you're gambling. I don't
50 00:06:01 --> 00:06:04 care who you are. I don't care if that hurts your feelings. You're literally
51 00:06:04 --> 00:06:10 gambling. When my sons did it, they gambled, they were over leveraged, they
52 00:06:10 --> 00:06:14 were trading more than they should have, and the amount of money they gave you
53 00:06:14 --> 00:06:18 that could be technically lost is such an infantile amount, it's so minuscule,
54 00:06:18 --> 00:06:22 it's little. And you don't have the skill set, I'm sorry, you don't have the
55 00:06:22 --> 00:06:26 skill set to be consistently able to go up against that as close as you can,
56 00:06:26 --> 00:06:30 without going over him out, without drawing the account down or blowing it
57 00:06:30 --> 00:06:34 out and then having to pay the reset fees. You can beat these companies. You
58 00:06:34 --> 00:06:39 can beat them consistently, but you have to do it with a shoestring budget
59 00:06:39 --> 00:06:44 approach, like trading the micros and what I'm showing you here today, all of
60 00:06:44 --> 00:06:48 you, I'm, in my opinion, all of you could can do what I'm about to show you
61 00:06:48 --> 00:06:51 today. That's my that's my personal opinion, and I'm welcome to that. You
62 00:06:51 --> 00:06:56 may not agree with that, but it's, it's my opinion. But before we get into me,
63 00:06:56 --> 00:07:00 just quickly right here. Yeah, okay, we got time the
64 00:07:06 --> 00:07:12 I mentioned on Twitter, I'm going to slow down on Twitter. I just went over
65 00:07:12 --> 00:07:20 there to rabble rouse for a little while. I've had fun, but the the tweet I
66 00:07:20 --> 00:07:24 put out this morning, I said that we would likely see a limp opening. It
67 00:07:24 --> 00:07:28 means it's anemic. It's not it doesn't have any kind of real excitement. And
68 00:07:28 --> 00:07:34 it's because we don't see a large gap between where we settled at 415 or
69 00:07:34 --> 00:07:43 4:14pm eastern time yesterday, to where we opened up at 930 here today. So if we
70 00:07:43 --> 00:07:51 click on regular trading hours, this candlestick right there, right here,
71 00:07:51 --> 00:08:01 that is the 4:14pm Thursday, September 19, 2024, settlement price now it trades
72 00:08:01 --> 00:08:06 for another 4546 more minutes, and then closes at five o'clock. But this is what
73 00:08:06 --> 00:08:12 you're looking for, for the opening range gap, if we open and the next
74 00:08:12 --> 00:08:20 candlestick shows this 9:30am today, Friday, September 20, 2024 that opening
75 00:08:20 --> 00:08:27 price sets the stage for the other parameter, for the opening range gap. So
76 00:08:27 --> 00:08:31 since yesterday's settlement price is higher than our opening price today at
77 00:08:31 --> 00:08:39 930 that means we have a discount opening range gap. That means today's
78 00:08:39 --> 00:08:48 opening price at 930 is lower than where we closed at 414 now with CFDs, you
79 00:08:48 --> 00:08:51 don't have this function here, and this is what's called a great deal of
80 00:08:51 --> 00:08:55 confusion for everyone that doesn't have the ability to trade with futures. So
81 00:08:55 --> 00:08:58 I'm going to show you how to bridge that in a moment. But let me just walk
82 00:08:58 --> 00:09:01 through this real quick, so that way, when you watch the video that just
83 00:09:01 --> 00:09:05 streams real quick without any annotation tonight, you know that you've
84 00:09:05 --> 00:09:14 heard it here, and just wait for the closed captions to appear. It takes time
85 00:09:14 --> 00:09:18 for YouTube to put those on. So stop sending me comments and tell me I'm
86 00:09:18 --> 00:09:22 being mean. I'm not being mean, but I'm not typing out a transcript every time I
87 00:09:22 --> 00:09:31 do a video. All right. So here is the first fair value gap between 930
88 00:09:32 --> 00:09:38 technically, 931 to 10 o'clock. That 930 to 10 o'clock is an interval of time
89 00:09:39 --> 00:09:45 that I dub a opening range. So there's two things occurring here, the opening
90 00:09:45 --> 00:09:50 range gap, which is a lower gap opening, which is that candlestick there, and
91 00:09:50 --> 00:09:55 this line, if we were to scroll all the way to the left, which I'm not going to
92 00:09:55 --> 00:10:00 do, would go right back to yesterday's. 4:14pm, Eastern Time, seven. Price. So
93 00:10:00 --> 00:10:10 it's this line here, that bold line and this bold line. I'm making it as maximum
94 00:10:10 --> 00:10:17 size as I can between those two price points is the opening range gap, opening
95 00:10:17 --> 00:10:25 range, which is algorithmic. Anything less than this, they're they're making
96 00:10:25 --> 00:10:29 up stuff. Let's put it that way. This is the first 30 minutes of trading. Okay,
97 00:10:29 --> 00:10:33 the algorithm is going to use this range for several things, some of the things
98 00:10:33 --> 00:10:37 I'll teach in 2024 mentorship, some of the things I already mentioned it. But
99 00:10:37 --> 00:10:40 there'll be a lot of things in the book. You do not need to know. The things that
100 00:10:40 --> 00:10:43 are going to be the book. You don't need to anything in those books. I've given
101 00:10:43 --> 00:10:47 you enough on this YouTube channel, so it's not a solicit to sell you a book. I
102 00:10:47 --> 00:10:51 don't care if you never buy my books, okay? I don't care if you come back and
103 00:10:51 --> 00:10:54 watch my videos ever again. I'm just telling you you don't need to buy them,
104 00:10:54 --> 00:11:01 okay? But I want to keep them, or keep the concepts private until I put it in
105 00:11:01 --> 00:11:04 book form. Because there's so many people out there writing books as I make
106 00:11:04 --> 00:11:09 videos here and teach new mentorship stuff, they're immediately putting them
107 00:11:09 --> 00:11:12 into print. And to me, it's a little irritating, because you're not even
108 00:11:12 --> 00:11:15 giving them. You're not getting the right instructions. So I want to do it
109 00:11:16 --> 00:11:19 my way, the correct way, and that way if you all want to write books after the
110 00:11:19 --> 00:11:25 fact, I could care less then, but the first fair value gap that forms occurs
111 00:11:25 --> 00:11:31 at 934 so it meets the minimal criteria of at least the 931 candle, because you
112 00:11:31 --> 00:11:36 can't use the 930 candle for the initial fair value gap or the first fair value
113 00:11:36 --> 00:11:41 gap presentation between the 930 and 10 o'clock, all of these Things are still
114 00:11:41 --> 00:11:48 going to hold true if you trade with the US 100 or the US 500 or the US 30. Those
115 00:11:48 --> 00:11:55 are CFD CFDs are kind of like a composite, derivative type, little blend
116 00:11:56 --> 00:12:01 of because they don't have the access to what the exchanges here do. They just
117 00:12:01 --> 00:12:06 try to mimic it as best they can? And for the most part, it's it's good
118 00:12:06 --> 00:12:11 enough. Okay, there's traders like Tom, who guard, who trade CFDs, and he has
119 00:12:11 --> 00:12:14 his own YouTube channel here. He live streams every single day, unless he
120 00:12:14 --> 00:12:18 tells you he's not going to. He trades in the European session and he trades in
121 00:12:18 --> 00:12:23 the New York session sometimes. And if you want to watch someone trade a market
122 00:12:23 --> 00:12:30 that is parallel to the US indices, like the NASDAQ, the Dow and the S P, you
123 00:12:30 --> 00:12:32 should watch his channel, because he's actually out there dealing it with real
124 00:12:32 --> 00:12:37 money. He's he's taking trades based on the stuff he he's built as a model for
125 00:12:37 --> 00:12:45 himself. So the 934 first favorite I got here. You may have noticed when I was
126 00:12:45 --> 00:12:50 showing the charts on Twitter this morning or this afternoon, rather. And
127 00:12:50 --> 00:12:54 you may have looked at this and said, Well, you know you're doing this wrong,
128 00:12:54 --> 00:12:58 and in the recording, you're going to see it look like this too. What I was
129 00:12:58 --> 00:13:04 doing was, um, I know that it's not going to show a volume imbalance between
130 00:13:04 --> 00:13:07 these two candlesticks up here, but there is a small one down here, so
131 00:13:07 --> 00:13:12 technically, it should look like this, but during the trade, I wanted to see it
132 00:13:12 --> 00:13:18 like that, okay, and I'll tell you why, because I want to see when we're in
133 00:13:18 --> 00:13:23 consolidation like this, where It's back and forth, back and forth. What this is,
134 00:13:23 --> 00:13:29 okay? It's not that it's lacking buying and selling. It doesn't mean that
135 00:13:29 --> 00:13:33 there's nobody's willing buy. Doesn't mean that there's a balance of buyers or
136 00:13:33 --> 00:13:37 sellers. It has absolutely nothing to do with that, zero to do with that. This is
137 00:13:37 --> 00:13:44 called time distortion. It's waiting for a specific time. What time is that? It's
138 00:13:44 --> 00:13:53 9:50am okay, so 9:50am to 1010, that is a algorithmic window of time where the
139 00:13:53 --> 00:13:59 market will start to spool. That means it's going to run. Okay, so this initial
140 00:13:59 --> 00:14:04 fair value gap, because we opened up. And you should have this in your notes
141 00:14:04 --> 00:14:09 as well, whenever we open up. And if you have a very small opening range gap,
142 00:14:09 --> 00:14:14 what is that? Well, it's 20 handles, and that's exactly what we had here today as
143 00:14:14 --> 00:14:18 an opening range gap, because the high of it, which was yesterday's 414,
144 00:14:18 --> 00:14:29 Eastern pm session settlement price was 20,000 055 for the micro NASDAQ for
145 00:14:29 --> 00:14:35 December contract. And then we open today for the same market here at 20,035
146 00:14:37 --> 00:14:42 even so, between those two prices, that's only 20 handles, so that's a
147 00:14:42 --> 00:14:48 really limp or anemic opening gap. It's not a lot to get excited about. Plus, we
148 00:14:48 --> 00:14:52 had a large range day yesterday, so in the morning, it's going to be a little
149 00:14:52 --> 00:14:57 bit more difficult. And then you compound that with a Friday, where we've
150 00:14:57 --> 00:15:01 already moved a lot. So it's it's. Going to be a whole lot more things that's
151 00:15:01 --> 00:15:06 going to go against you, so you have to really stick the time. And the other
152 00:15:06 --> 00:15:11 time, if it's a lot of volatility, you don't have to require my macro times. I
153 00:15:11 --> 00:15:14 don't require my macro times when there's a lot of volatility, but when
154 00:15:14 --> 00:15:17 there's things that are stacking against you, like we have a small gap opening,
155 00:15:18 --> 00:15:28 it's Friday, we're at the end of the week, and well, that's enough. The the
156 00:15:28 --> 00:15:31 small gap in a large range. Day yesterday already puts the the focus on
157 00:15:31 --> 00:15:35 the morning session is going to be a little bit more challenging for someone
158 00:15:35 --> 00:15:40 that doesn't have experience. So what occurs here is when the market opens up
159 00:15:40 --> 00:15:45 at 930 it rallies and takes out a short term buy side liquidity. So it engages
160 00:15:45 --> 00:15:50 that knocks out anyone that's already short, so they can't capitalize on that.
161 00:15:50 --> 00:15:54 And it puts traders that would be a buyer above this old hire here that now
162 00:15:54 --> 00:15:59 they're trapped in it long, so they're going to rake them across the coals to
163 00:15:59 --> 00:16:05 this area of sell side to their sell stops below here. So they take traders
164 00:16:05 --> 00:16:12 in prematurely by taking out this high there. So now they're thinking it's
165 00:16:12 --> 00:16:18 going to break out. Keep going higher. It's not the market's going to trade.
166 00:16:18 --> 00:16:24 Yesterday's gap did not get traded to to the midpoint, and it barely made an
167 00:16:24 --> 00:16:29 attempt to get down into it. So because it's Friday, because it's TGIF, TGIF is
168 00:16:30 --> 00:16:33 a scenario I like to look for, for the weekly range, whatever the highest high
169 00:16:33 --> 00:16:37 in the lowest low is. And I'll include this information in Caleb's video
170 00:16:37 --> 00:16:41 tonight. Okay, so on his channel, what I'm referring to by TGIF, and what that
171 00:16:41 --> 00:16:45 means, and how to determine what that looks like on your charts. I'll show you
172 00:16:45 --> 00:16:48 what that is. It only takes me a minute to do that, but it's likely to see a
173 00:16:48 --> 00:16:53 pullback on Friday to 20 to 30% of the weekly range. Not that it means to do
174 00:16:53 --> 00:16:56 that, but I'm always looking for something like that to unfold, and
175 00:16:56 --> 00:17:05 because we have a low, exciting lack of excitement. Opening range gap, because
176 00:17:05 --> 00:17:14 it's only 20 handles, it's not, it's not going to be requiring much, I guess,
177 00:17:14 --> 00:17:21 participation right away. So wait. So what it means to me is, I'm looking at
178 00:17:21 --> 00:17:25 that gap here, and I anticipate that they're going to work both sides of it,
179 00:17:25 --> 00:17:28 back and forth, back and forth, back and forth. And I'm going to draw it
180 00:17:28 --> 00:17:32 correctly so that we can see it real quick. That's what it would look like.
181 00:17:33 --> 00:17:38 And I'll get to the breakaway gap in a second, if we know that we have a very
182 00:17:38 --> 00:17:44 small gap opening, and we have a Friday end of the week, and we have a large
183 00:17:44 --> 00:17:50 range day yesterday, we're going to be opening up close to what else? What?
184 00:17:50 --> 00:17:56 What was the first comment that I was asking you about today on Twitter? Have
185 00:17:56 --> 00:18:00 you extended yesterday's first presentation fair value gap between 930
186 00:18:01 --> 00:18:06 and 10 o'clock. That's what this orange box is here. This orange box is
187 00:18:06 --> 00:18:12 yesterday. Thursday's first fair value gap between 930 or 931 to 10 o'clock in
188 00:18:12 --> 00:18:17 the morning, Eastern Time. The same way this is for today, the first fair value
189 00:18:17 --> 00:18:24 gap. You want to extend them forward and their life cycles about three days now,
190 00:18:24 --> 00:18:30 you're going to find that sometimes they'll still be useful a week, two
191 00:18:30 --> 00:18:34 weeks, three weeks ago. You know it's it hasn't been traded back to Okay, that's
192 00:18:34 --> 00:18:39 usually how it works. But when we're in a area where it's going to be ranging
193 00:18:39 --> 00:18:46 around it and notice that when we were close to 930 if you look at what the pre
194 00:18:46 --> 00:18:49 market was doing, because we're looking at electronic hours down here, it's the
195 00:18:49 --> 00:18:52 same thing if you were looking at your CFD. So if you're looking at the US 100
196 00:18:53 --> 00:18:56 and I'll show you a US 100 chart in a minute. Let me just get through this
197 00:18:56 --> 00:19:00 part here, because I know you're like, I want to see it on a US 100 chart. You
198 00:19:00 --> 00:19:04 will, but let me teach the way I want to teach. Please. Some of you are very
199 00:19:04 --> 00:19:08 demanding and very rude in the comment section, and I don't ever see your
200 00:19:08 --> 00:19:11 comment again. So just be mindful that I don't mind taking your your inquiries
201 00:19:11 --> 00:19:16 and your questions, and I can bring that into the conversations, but when I see
202 00:19:16 --> 00:19:20 you being rude or demanding or entitled, I don't ever get to see your comment
203 00:19:20 --> 00:19:23 ever again. You think I'm going to see it, but I can't. I block you from the
204 00:19:23 --> 00:19:26 channel. Doesn't mean you can't watch my videos or think you're leaving comments.
205 00:19:26 --> 00:19:35 It just means I will never see it. So because we're opening up right here at
206 00:19:35 --> 00:19:40 9:29am, that's electronic trading hours, you already can guess what the opening
207 00:19:40 --> 00:19:44 price is going to be. It's going to be below where seventh was yesterday. Up
208 00:19:44 --> 00:19:52 here, that's that price at 20,055 and it's again referring to this. That's
209 00:19:52 --> 00:19:58 where trading stopped yesterday. And then it starts here with regular trading
210 00:19:58 --> 00:20:02 hours. But between these two. Price point all day. I mean, all night long.
211 00:20:02 --> 00:20:08 We've had all kinds of trading back and forth. But when we get close to 930, at
212 00:20:08 --> 00:20:12 929, you can, you can see where we're going to be opening in relative terms to
213 00:20:13 --> 00:20:18 the 4:14pm, Eastern Time settlement price, we're going to be opening higher
214 00:20:18 --> 00:20:21 or lower. And you can guesstimate, really, is it going to be a wide gap?
215 00:20:21 --> 00:20:28 And if it's not a wide gap, I don't like really less than 40 handles. If it's
216 00:20:28 --> 00:20:33 less than 40 handles, I'm using other tools that's going to help me for
217 00:20:33 --> 00:20:37 trading the morning session. Or I'll just opt out and wait till 10 o'clock
218 00:20:37 --> 00:20:41 and I'll trade silver bullet, something like that. So there's very simple rules.
219 00:20:41 --> 00:20:44 You see that it's not hard, it's not complicated, but you have to have
220 00:20:44 --> 00:20:47 conditions and understand what those conditions are. And the same thing that
221 00:20:47 --> 00:20:53 we're seeing here is applicable to the CFD market. So you don't have to stress
222 00:20:53 --> 00:20:58 about, I don't trade futures, so I don't know how to make this work for me. So
223 00:20:58 --> 00:21:01 because we have a very small gap between those two price points, yesterday's
224 00:21:01 --> 00:21:06 settlement price in 9/31 opening price. Tick. That's this candle's opening
225 00:21:06 --> 00:21:11 price. Where is that happening? Well, look at 929 look at that candle. Where
226 00:21:11 --> 00:21:16 it's trading at. Before that candle closes, we're inside yesterday's first
227 00:21:16 --> 00:21:21 presented fair value gap, aren't we? Look at the orange box. The only thing I
228 00:21:21 --> 00:21:29 did here is I took the same gap that formed the very first one on the one
229 00:21:29 --> 00:21:35 minute chart. I'm taking all your here because I want you to see it.
230 00:21:42 --> 00:21:46 That's this candlestick right here at 938 that's the very first fair value gap
231 00:21:47 --> 00:21:54 on Thursday, September 19, 2024 you understand. So the only thing I'm doing
232 00:21:54 --> 00:21:59 is taking that gap, and I'm toggling on the settings box here. I'll go to
233 00:21:59 --> 00:22:03 settings and over here, where it says style, just click extend right. If I
234 00:22:03 --> 00:22:07 don't extend right, you can see it's just that candlestick right there. But
235 00:22:07 --> 00:22:12 when I click on it like that, it keeps printing it and posting it forward in
236 00:22:12 --> 00:22:17 the future. So that way, it's always going to be a reference point for me. So
237 00:22:18 --> 00:22:22 by having that information, you want to know where you are in the last three
238 00:22:22 --> 00:22:26 days with the first presented fair value gap between 931 and 10 o'clock in the
239 00:22:26 --> 00:22:30 morning, because the algorithm is going to refer back to that again. And all you
240 00:22:30 --> 00:22:33 have to do is look at what price has been doing here. You're going to tell me
241 00:22:33 --> 00:22:36 that's buying and selling pressure. And everybody looks at that first fair value
242 00:22:36 --> 00:22:39 gap. Everybody knew about that. That was you're telling me it's facade. I think
243 00:22:39 --> 00:22:44 think about these people here. They talk nonsense. Oh, everybody knew about that.
244 00:22:44 --> 00:22:50 Sam Sidon teaches that. No, he doesn't. He probably will. Now make sure you take
245 00:22:50 --> 00:23:00 good notes. Sam, so if we have the opening here today at 930 it's opening
246 00:23:00 --> 00:23:06 inside of yesterday's first presented fair value gap. So what does that mean?
247 00:23:08 --> 00:23:13 It's going to use that fair value gap, not just this one and the first one that
248 00:23:13 --> 00:23:19 prints in during time. Distortion may not be all that influential, and it
249 00:23:19 --> 00:23:28 might be useful next week instead, you understand. So we have to look at this
250 00:23:30 --> 00:23:34 orange shaded area, because that's yesterday. Thursday's first presentation
251 00:23:34 --> 00:23:39 of a fair value gap between 930 and 10 o'clock. That's why I asked on Twitter.
252 00:23:39 --> 00:23:46 I said, Have you extended yesterday's or Thursday's first presented fair Vega?
253 00:23:46 --> 00:23:50 Have you? Have you made it so it's extending to the right on your chart?
254 00:23:51 --> 00:23:56 Because if you're not doing that, you're going to miss everything that occurs
255 00:23:57 --> 00:24:05 around this day. So when we're looking at opportunities for setups to form,
256 00:24:05 --> 00:24:12 when we're looking for things that build, something that's predictable,
257 00:24:12 --> 00:24:17 something that you can forecast, something that you can anticipate and
258 00:24:17 --> 00:24:24 not be reacting people that do not know how price books, people that don't know
259 00:24:24 --> 00:24:30 how these markets work, are always going to be reacting. If you're reacting to
260 00:24:30 --> 00:24:33 something, that means you didn't anticipate it. That means you didn't
261 00:24:33 --> 00:24:37 know it was going to happen, and that means you're not informed, and that
262 00:24:37 --> 00:24:44 means you're not smart money. Now what I teach are concepts to help you predict.
263 00:24:45 --> 00:24:49 You absolutely are predicting the market. You are predicting it. Anyone
264 00:24:49 --> 00:24:52 that tells you you're not is talking out their ass. They have no idea what
265 00:24:52 --> 00:24:55 they're doing and what they're doing is they're making an allowances for
266 00:24:55 --> 00:25:01 themselves because they're not good at doing it. So they have a. A wide array
267 00:25:01 --> 00:25:05 of excuses. It comforts them, because they're not going to be holding
268 00:25:05 --> 00:25:09 themselves to the degree of accountability that other people in the
269 00:25:09 --> 00:25:13 industry, like myself and my students. If we're challenged, can you do this?
270 00:25:13 --> 00:25:16 We're right there at the front of the line. Yes, let me give you an
271 00:25:16 --> 00:25:20 opportunity to see it for real. Let me show you what you don't know, because we
272 00:25:20 --> 00:25:24 know what we know, and nobody's going to tell us it ain't happening. And we can
273 00:25:24 --> 00:25:27 do it in our hands, and we're doing it better than any other school of thought
274 00:25:27 --> 00:25:32 out there, more consistently. And you can learn this. You can learn how to do
275 00:25:32 --> 00:25:37 this. You don't just watch me do it. You have to go into charts and practice, but
276 00:25:37 --> 00:25:42 you have to start with these reference points. And you see by journaling them
277 00:25:43 --> 00:25:47 in the last three days, did did the first presented fair value gap two days
278 00:25:47 --> 00:25:51 ago? Did it have any influence on the price today? These are questions you
279 00:25:51 --> 00:25:55 should go in there and looking for, and you're going to be discovering that,
280 00:25:55 --> 00:26:01 wow, that was amazing, how that was just perfectly offered as a setup, and it had
281 00:26:01 --> 00:26:06 very little drawdown, and it fired away. Then, you know, 30 to 50 handles, if not
282 00:26:06 --> 00:26:11 more. But you're all struggling looking for setups, and they're right in front
283 00:26:11 --> 00:26:16 of you, if you just listen, I'm telling you how to find them. So today, what I
284 00:26:16 --> 00:26:21 was doing is I was watching this initial fair value gap and anticipating this
285 00:26:21 --> 00:26:24 back and forth, time distortion, where it's just going to be working. What?
286 00:26:24 --> 00:26:30 What is it working? Well, we we ran the initial level buy side that was over
287 00:26:30 --> 00:26:35 here, that was pre session. So when we wicked above that, or there it went,
288 00:26:35 --> 00:26:40 back down in and what is it hitting today's opening price? What is the
289 00:26:40 --> 00:26:46 opening price at 930 it's the low of the opening range gap. So watch what it's
290 00:26:46 --> 00:26:50 doing. It's opening here. It swings up to the high, which is yesterday's 414
291 00:26:51 --> 00:26:55 settlement price. That's the high of the opening range gap for today. Then it
292 00:26:55 --> 00:27:00 trades through that to get liquidity over here, and then it trades back down
293 00:27:00 --> 00:27:04 overlaps the low or the opening price. And then what does it do again? It one
294 00:27:04 --> 00:27:09 more time, reaches more buy side that maybe didn't get hit. Here they're going
295 00:27:09 --> 00:27:13 one more pass in, and they're dropping it down again. Where's it going? Right
296 00:27:13 --> 00:27:19 down to the opening range, gap low, if you're just looking at this, okay, or
297 00:27:20 --> 00:27:23 you're a Dingleberry, and you are out there trying to point to where fair
298 00:27:23 --> 00:27:26 value gaps don't work. And look at this, they get ran through. To get ran
299 00:27:26 --> 00:27:30 through. It's designed to do that. It's designed to do that because you don't
300 00:27:30 --> 00:27:34 know what the fuck you're talking about. There's logic behind these things, and
301 00:27:34 --> 00:27:37 you don't know what it is, simply because you can draw a rectangle in one
302 00:27:37 --> 00:27:42 candlestick that is not bridged with the previous candle or the subsequent next
303 00:27:42 --> 00:27:47 candle doesn't make it a fair value guy. It makes no sense for anybody out there
304 00:27:47 --> 00:27:50 to assume just because you think you see it there, it doesn't make it a fair
305 00:27:50 --> 00:27:53 value guy. Just like every down closed candle is not a bullish order block and
306 00:27:53 --> 00:27:59 never every up candle is not a bearish order block. So it's it's a little
307 00:27:59 --> 00:28:03 frustrating. The teacher in me gets frustrated, because I know that what
308 00:28:03 --> 00:28:07 what these people are doing is they copped out. They didn't want to go
309 00:28:07 --> 00:28:09 through the process of really learning how to do it, so it's easier for them to
310 00:28:09 --> 00:28:13 cook fun and say, look, it failed here, but I'm murdering these markets. I'm
311 00:28:13 --> 00:28:17 doing it in front of people, and my students are doing it, and you and you
312 00:28:17 --> 00:28:20 can be one of them, and you don't have to like me as a person. I don't care.
313 00:28:20 --> 00:28:25 We're not here to be friends, but I want you all to do well. And if you
314 00:28:25 --> 00:28:29 understand that, this is what this is going to do. Because of the day, it's
315 00:28:29 --> 00:28:32 Friday, we have a very small gap opening, and we had a large range
316 00:28:32 --> 00:28:35 yesterday, so the morning session is already going to be what more
317 00:28:35 --> 00:28:39 complicated and challenging for a new trader. It doesn't mean you can't trade
318 00:28:39 --> 00:28:44 it. It just means that when I talk, I talk in two schools of thought, my
319 00:28:45 --> 00:28:49 students that understand how to trade, the ones that have their model and they
320 00:28:49 --> 00:28:53 don't need to listen to me, okay, they're more advanced, or the people
321 00:28:53 --> 00:28:56 that are just coming to me, they don't know anything. When I say, don't trade
322 00:28:56 --> 00:29:00 on Mondays, most of time, it's because I don't want that new student to trade on
323 00:29:00 --> 00:29:05 Mondays, because they tend to be a little bit more demanding in experience.
324 00:29:06 --> 00:29:10 When I say don't trade on high news, news events, it doesn't mean you can't
325 00:29:10 --> 00:29:13 trade on them. If you know what you're doing, you just got to wait until after
326 00:29:13 --> 00:29:17 the report hits, then go in and look for the inefficiencies or the liquidities
327 00:29:17 --> 00:29:20 left. But if you don't know what you're doing, if you don't even know what an
328 00:29:20 --> 00:29:24 economic calendar is, you can get out there and get hurt really bad, and I
329 00:29:24 --> 00:29:29 don't want any of that to happen to any of you. So because we have all those
330 00:29:29 --> 00:29:37 factors today, that first gap is really of no importance yet, because it still
331 00:29:37 --> 00:29:43 has to worry about yesterday's first fair value gap, because we opened inside
332 00:29:43 --> 00:29:49 of it. This is a small little gap. This is a much larger gap, and we have been
333 00:29:49 --> 00:29:54 using it since yesterday, over and over and over again. There was many trades
334 00:29:54 --> 00:29:58 over the london session, the European session, Asia's close overnight. Last
335 00:29:58 --> 00:30:03 night in Asia, there was trade. Around this orange box. They're there all the
336 00:30:03 --> 00:30:06 time, and you've never noticed them because they've never been in any retail
337 00:30:06 --> 00:30:10 books. That's why you didn't see them. Because if someone says, Hey, look, ICT
338 00:30:10 --> 00:30:14 just reinvented something, they should see these setups. And they should be
339 00:30:14 --> 00:30:20 there before 1996 they should be there before 2016 for sure. And they aren't
340 00:30:21 --> 00:30:30 okay, so forget about it. So in here, once we got to here's 950 Okay, that's
341 00:30:30 --> 00:30:36 this candlestick right there, 950 now we're at the time. We're at the time
342 00:30:37 --> 00:30:44 when the market will do what spool now think about what has transpired. We had
343 00:30:44 --> 00:30:53 a nice up close week. We've had the market open with a small opening range.
344 00:30:53 --> 00:31:03 Gap, 20 handles we opened in yesterday's first presented fair value gap, the so
345 00:31:03 --> 00:31:09 this gap here is going to be the least important. We ran back and forth over
346 00:31:09 --> 00:31:14 top of the opening range gap, and yesterday's opening range gap did not
347 00:31:14 --> 00:31:19 even trade to its midpoint or consequent encroachment. It barely made its way
348 00:31:19 --> 00:31:27 towards the upper quadrant, so there's a huge discount, or a vacuum of price
349 00:31:28 --> 00:31:32 where there was no buying and selling, because it never went down into its gag
350 00:31:32 --> 00:31:33 yesterday at much
351 00:31:34 --> 00:31:39 so, because it's Friday, and TGIF is Thank God it's Friday, meaning that it's
352 00:31:39 --> 00:31:45 likely to Have a 20 to 30% retracement of what the total weekly range was. So
353 00:31:45 --> 00:31:50 there's a lot of things that could be built into expecting the market to work
354 00:31:50 --> 00:31:58 down below yesterday's first presented, fair Vega, but you have to wait until
355 00:31:58 --> 00:32:01 the algorithm, not the buying and selling pressure, kicking in. It's the
356 00:32:01 --> 00:32:05 algorithm, okay? It's the price engine that's going to start offering lower
357 00:32:05 --> 00:32:09 prices. And it matters not how many people you see on a depth of market or
358 00:32:09 --> 00:32:14 Level Two market makers don't use that shit, because what you're talking about,
359 00:32:14 --> 00:32:17 you're talking about a dealer. You're not making a market. If you're as a
360 00:32:17 --> 00:32:22 dealer, you're trading in the same price feed that everybody else is you're not
361 00:32:22 --> 00:32:26 making that price. That price is what's out there right now, and you aren't
362 00:32:26 --> 00:32:31 delivering it. You're not doing that. It's way above you. You have no idea
363 00:32:31 --> 00:32:35 what the hell's going on. And by understanding that these things are
364 00:32:35 --> 00:32:38 electronically driven in their algorithmic that means yes, there's
365 00:32:38 --> 00:32:44 going to be reflected time in sales that says there was buyers at this price and
366 00:32:44 --> 00:32:47 there were sellers at this price, and this was the amount of trade contracts
367 00:32:47 --> 00:32:53 there. But that's not that's not going to have any lasting directional
368 00:32:53 --> 00:32:58 influence. It might be a couple ticks here and there that, you know, it jumps
369 00:32:58 --> 00:33:03 to get those orders, but it's going to go lower because it's driven to go
370 00:33:03 --> 00:33:07 lower. It's scripted, and that's the part that most of you are struggling
371 00:33:07 --> 00:33:13 with. I understand it's a little scary when you think about it, because we
372 00:33:13 --> 00:33:16 don't have a free market, then we don't have a free market, and I'm glad we
373 00:33:16 --> 00:33:20 don't have a free market, because that's what makes it advantageous. That's why I
374 00:33:20 --> 00:33:23 can time this stuff, that's why I can explain it and make a concept around it,
375 00:33:23 --> 00:33:28 because it's scripted. You know what's going to likely occur unless there's
376 00:33:28 --> 00:33:31 manual intervention. So if there's things that are scripted, wouldn't it
377 00:33:31 --> 00:33:37 make sense that they're going to repeat the same times of day? Yes, absolutely
378 00:33:38 --> 00:33:43 every top of the hour first, I'm sorry, yeah, 10 minutes before you get to the
379 00:33:43 --> 00:33:48 top of the hour. That's in this case here, it's 9:50am and they last for 20
380 00:33:48 --> 00:33:52 minutes. So in that 20 minute interval, what we're looking for is, okay,
381 00:33:52 --> 00:33:58 nothing. It's Friday. We have a small gap. We have a large range, and we've
382 00:33:58 --> 00:34:02 already taken by side here. So and we open inside of yesterday's first
383 00:34:02 --> 00:34:09 presented, fair Vega. Me getting to the point is this, it's more likely that
384 00:34:09 --> 00:34:18 it's going to spool at 950, to 1010, lower, lower. So if that's the case, if
385 00:34:18 --> 00:34:24 you're telling me that we're looking for yesterday's larger gap that didn't get
386 00:34:24 --> 00:34:28 traded too much, because we have a very anemic, small gap here today. Well,
387 00:34:28 --> 00:34:32 simply just be aware of those levels, but focus on yesterday's gap because
388 00:34:33 --> 00:34:36 there's more opportunity for the market to want to go down into that area,
389 00:34:36 --> 00:34:44 because it's going to offer efficient delivery, buying and selling is not
390 00:34:44 --> 00:34:49 pushing price. It doesn't matter how much buying and selling is occurring. If
391 00:34:49 --> 00:34:52 the market's going lower, it's going lower because it's going there, because
392 00:34:52 --> 00:34:57 it's driven there, not by the selling, not because there's a lack of buyers.
393 00:34:58 --> 00:35:04 It's simply a. Being taken there, because it's coded to do that. And yes,
394 00:35:04 --> 00:35:09 you'll see all as as the transactions come in, because people are sentiment
395 00:35:09 --> 00:35:15 driven animals. Okay, we we're greedy, we're scared, we're fearful, we're
396 00:35:15 --> 00:35:20 impulsive. So naturally, yes, yes, we can look in all these candlesticks, and
397 00:35:20 --> 00:35:24 smart people with hindsight can say, Look at this. ICT is talking nonsense,
398 00:35:24 --> 00:35:27 because all you have to do is look at the volume profile, and all you have to
399 00:35:27 --> 00:35:30 do is look at the time and time in sales, and all you have to do is look at
400 00:35:30 --> 00:35:38 level two. You need that bullshit after it has happened. You're looking at that.
401 00:35:39 --> 00:35:43 You're justifying something after that's happened in the depth of market, those
402 00:35:43 --> 00:35:47 ladders that show you supposedly where, like, there's this many buyers waiting
403 00:35:47 --> 00:35:51 above here at this price, or this many sellers waiting here. They're not all
404 00:35:51 --> 00:35:57 real orders. They're not all real orders. So you're being you're it's a
405 00:35:57 --> 00:36:02 spoofing. There's been large institutions that got themselves in
406 00:36:02 --> 00:36:06 trouble doing that very thing. So why would you look at something where
407 00:36:06 --> 00:36:09 they're dangling carrots when those carrots really aren't there? It's a
408 00:36:09 --> 00:36:14 mirage. But see, I know what I'm looking for, and I don't need a book map. I
409 00:36:14 --> 00:36:19 don't need those instruments out there that tell you supposedly a pseudo amount
410 00:36:19 --> 00:36:23 of contracts that are resting at a specific price level, above or below the
411 00:36:23 --> 00:36:27 market price. You don't need those things. You don't need them. But I would
412 00:36:27 --> 00:36:31 have loved having it in the beginning, because I didn't understand the concept
413 00:36:31 --> 00:36:36 of liquidity. But when you understand liquidity, you're going to get confused
414 00:36:36 --> 00:36:40 by looking at those tools only and not understanding what the algorithm is
415 00:36:40 --> 00:36:43 doing, just simply, because there's a lot of orders above the market. Above
416 00:36:43 --> 00:36:47 the market doesn't mean it's going to go up. All you have to do is study it all.
417 00:36:47 --> 00:36:52 At any given time, any day, you'll see that there's a large pool of orders that
418 00:36:52 --> 00:36:55 just simply aren't going to get traded to. And you're thinking, Okay, well,
419 00:36:55 --> 00:37:00 they're not interested. Who's that? When you talk like that, who is the they but
420 00:37:00 --> 00:37:04 when I say today, you all get a case of the ass like, you know, this guy's a
421 00:37:04 --> 00:37:10 conspiracy nut, but there's an algorithm that delivers price, and if you can time
422 00:37:10 --> 00:37:17 when to anticipate the market reacting a specific way, the condition is this. The
423 00:37:17 --> 00:37:21 narrative is this. It's going to go lower. When I tweeted this morning, I
424 00:37:21 --> 00:37:26 said, focus on two sell side liquidity pools. Does that sound bullish to you? I
425 00:37:26 --> 00:37:30 mean something below the market. So again, the direction was right.
426 00:37:41 --> 00:37:44 There's a short term low there, there's a short term low right there, there's a
427 00:37:44 --> 00:37:47 short term low right there, there's a short term low right there, and there's
428 00:37:47 --> 00:37:53 a short term low right there. Okay, I used the easiest one that would be below
429 00:37:53 --> 00:37:58 here. So that's this one here. This one I'm not too concerned about. I ain't
430 00:37:58 --> 00:38:02 worried about the fair value gap, because if we're going to get down here,
431 00:38:02 --> 00:38:08 it's going to want to go below these relative equal lives. So from up here at
432 00:38:08 --> 00:38:16 950 I'm anticipating the market at that time it's going to start, it's going to
433 00:38:16 --> 00:38:22 start moving in that direction. That's what a macro is. A macro is a small list
434 00:38:22 --> 00:38:29 of directives that this program, because that's all it is. It starts processing
435 00:38:29 --> 00:38:36 and delivering on the basis of how fast it's told to do it, how many times it
436 00:38:36 --> 00:38:40 has to stop. And create this scenario here, which is time distortion. You are
437 00:38:40 --> 00:38:46 all told that it's chop, or it's consolidation, or it's indecisiveness.
438 00:38:46 --> 00:38:51 It moves. It knows exactly what it's doing. Folks, it know. It knows exactly
439 00:38:51 --> 00:38:55 what it's doing. It has a list of directions, and it's following it.
440 00:38:56 --> 00:39:01 That's all it does, okay? And this engine that delivers and manipulates
441 00:39:01 --> 00:39:09 price. We all are watching a video game, and we have no control with our buying
442 00:39:09 --> 00:39:13 and selling. If we could, if we had that much influence because of our buying and
443 00:39:13 --> 00:39:17 selling, we could crash the market. We could send it to the moon any given day.
444 00:39:19 --> 00:39:22 We could do that. There's enough people in the world that that can happen.
445 00:39:24 --> 00:39:31 Think, but when there is a perfect opportunity to screw people over, they
446 00:39:31 --> 00:39:35 will manually intervene, and that's how you get the game stop in the Blackberry,
447 00:39:36 --> 00:39:41 in the AMC theaters, Reddit, they got together and they said, Look, we're
448 00:39:41 --> 00:39:45 gonna, we're gonna screw all the hedge funds. Well, the hedge funds, they
449 00:39:45 --> 00:39:51 aren't controlling price. They're just big players in it, but they don't know
450 00:39:51 --> 00:39:55 what they're doing. They're just in there gambling with large pockets, deep
451 00:39:55 --> 00:40:02 pockets. But when you have the ability to control price. Price, and you say,
452 00:40:02 --> 00:40:05 Okay, there's a whole bunch of suckers out there reading Reddit, and they're
453 00:40:05 --> 00:40:11 all going to start piling in and buying it up. Okay, wonderful. They'll buy too,
454 00:40:12 --> 00:40:17 because they're greedy. They the hand. And what they'll do is they'll offer
455 00:40:18 --> 00:40:24 big, huge skips in pricing, where the price is just gapping up like crazy,
456 00:40:25 --> 00:40:28 because they know that there's going to be a fevered pitch to do what buy it.
457 00:40:28 --> 00:40:32 It's going to keep going up. It's going to keep going up. And the more people on
458 00:40:32 --> 00:40:35 Reddit, the more people on Twitter, the more people on Instagram that we're
459 00:40:35 --> 00:40:38 talking about those stocks, which I said, don't touch them. Don't touch
460 00:40:38 --> 00:40:45 them. That's a Ponzi. The market makers were literally building in a premium.
461 00:40:45 --> 00:40:48 They were just literally offering higher, higher, higher, and they were
462 00:40:48 --> 00:40:53 getting traded at that's the same principle here. It's just being slowed
463 00:40:53 --> 00:40:59 down to a manner where it's it doesn't look like except for normal price
464 00:40:59 --> 00:41:04 delivery. It's not shocking. It's not jarring. Now there's days like left OMC,
465 00:41:04 --> 00:41:09 there's Non Farm Payroll, CPI, ppi, those types of news drivers are the same
466 00:41:09 --> 00:41:19 event that you've seen happen in AMC, BlackBerry, in GameStop. That's the same
467 00:41:19 --> 00:41:25 thing. That's the same thing that happened with Bitcoin. That's all that
468 00:41:25 --> 00:41:28 you watch that happen like that. That's how I timed it when it when I told you
469 00:41:28 --> 00:41:31 in years ago, I said, it ain't going to go to 20,000 it's going to go to 6000
470 00:41:31 --> 00:41:36 it's going to go to 3000 and I was right. And then I said, I'll tell you
471 00:41:36 --> 00:41:39 when it's going to go 20,000 and I did. Then I told you when it's going to go to
472 00:41:39 --> 00:41:44 30 and 60. And when we got to 70,000 I said we're done, and then it traded
473 00:41:44 --> 00:41:48 lower. Yes, there's a meme out there where I said it's going to go to $100
474 00:41:49 --> 00:41:54 because I ultimately know it's going to it's going to be worthless later on. But
475 00:41:54 --> 00:41:59 right now, it's a wonderful little Ponzi for people to get cooked in. But the
476 00:41:59 --> 00:42:06 market is slowing that Ponzi scheme down where it is allowing people to go into
477 00:42:06 --> 00:42:11 these markets and provide liquidity for people that use them professionally.
478 00:42:11 --> 00:42:14 There's always going to be something out here trading, and it only takes one
479 00:42:14 --> 00:42:19 contract to trade and make that price book on your chart. But that's not
480 00:42:19 --> 00:42:23 buying and selling pressure if the for instance, let me suspend your disability
481 00:42:23 --> 00:42:26 this belief for a second, okay, just for the sake of having a conversation here.
482 00:42:26 --> 00:42:29 Because if you don't give me this, you must have just turned the video off.
483 00:42:31 --> 00:42:37 Let's just say, for the sake of argument, that at 950 to 1010, something
484 00:42:37 --> 00:42:43 artificial, some artificial intelligence, starts a program, and it
485 00:42:43 --> 00:42:46 starts offering lower prices. And it doesn't matter how many people come in
486 00:42:46 --> 00:42:49 to buy it, it's just going to keep going lower offering lower prices, lower
487 00:42:49 --> 00:42:53 prices. What do you think that does? Well for people that want to buy it,
488 00:42:53 --> 00:42:57 they're thinking, wow, it's that's cheaper. Now let me buy it. Oh, wow,
489 00:42:57 --> 00:43:00 it's down with this support. Let me buy it. Oh, it's at this old high. Let me
490 00:43:00 --> 00:43:05 buy it. Oh, it went below here. So we're going to do some of those real tricks
491 00:43:05 --> 00:43:11 where you can buy, sell stops, because that's what crafty traders do. Well, it
492 00:43:11 --> 00:43:15 just keeps going lower, and it keeps going lower, below that. What about the
493 00:43:15 --> 00:43:20 support that was supposed to be here? It just keeps going lower. So who's right?
494 00:43:20 --> 00:43:27 What school of thoughts right here? Mine. This algorithm is repricing.
495 00:43:27 --> 00:43:32 That's all it's doing. But what happens is, the people that know this is
496 00:43:32 --> 00:43:36 occurring, the people that learn from me, the people are out there actually
497 00:43:36 --> 00:43:38 using it too, outside of my own hands and influence now, because they learned
498 00:43:38 --> 00:43:48 it, they can be short in this move, and they can profit without any worry about
499 00:43:48 --> 00:43:56 being a pattern, an old, archaic methodology. No white golf, no Sam side
500 00:43:56 --> 00:44:01 and stuff, no Gan no Elliott Wave, none of that stuff. No hearse cycles, none of
501 00:44:01 --> 00:44:09 that, none of that stuff. It's simply understanding time. There you go. And
502 00:44:09 --> 00:44:13 price. Price is going to behave like this. It's going to start rebooking and
503 00:44:13 --> 00:44:19 delivering to sell side. That's time and price theory. ICT style. We're not doing
504 00:44:19 --> 00:44:25 diagonal trend lines. We're not doing Geograph geometry and and all kinds of
505 00:44:25 --> 00:44:30 pattern stuff. And that's all. It's nonsense. That's a religion. That's all
506 00:44:30 --> 00:44:34 religious thought process. When you're looking at price, price patterns, and
507 00:44:34 --> 00:44:37 you think this is somehow having an influence. It has influence over people
508 00:44:37 --> 00:44:40 buying and selling, but that buying and selling of these people are doing has
509 00:44:40 --> 00:44:45 absolutely no bearing on what these artificially delivered markets are
510 00:44:45 --> 00:44:53 doing. So how can we capitalize on that? Well, if you're inside this opening
511 00:44:53 --> 00:44:59 range between 930 and 10 o'clock, the time for it to start going lower is now.
512 00:44:59 --> 00:45:05 I. At hand at 950 now we want to see it trade lower. I want to see it go through
513 00:45:05 --> 00:45:10 today's fair value gap, because it's time to do so. We've already trapped
514 00:45:10 --> 00:45:15 traders up here. So now it's going to attack what this pool of liquidity right
515 00:45:15 --> 00:45:18 there that hasn't been traded to yet. Let me take these vertical lines off,
516 00:45:18 --> 00:45:23 because I don't want you thinking that candlestick wicks or anything. So this
517 00:45:23 --> 00:45:26 is a good shit. I know. I wish I would have known this when I first started. So
518 00:45:26 --> 00:45:29 right below here we're targeting that. We're targeting that because there's
519 00:45:29 --> 00:45:34 going to be what, what's resting below there. Cell stops. Somebody went long
520 00:45:34 --> 00:45:39 there, and that's all the algorithm needs to know. Is there was a low here.
521 00:45:39 --> 00:45:43 So it's going to keep dropping down till it gets to here. Oh, there's a lot of
522 00:45:43 --> 00:45:46 buyers. It's real cheap. Doesn't matter. It's going to keep going lower because
523 00:45:46 --> 00:45:52 it knows its list of directives. That's what a macro is. It's a short little
524 00:45:52 --> 00:45:56 program script that it starts doing something specifically, and what it's
525 00:45:56 --> 00:46:00 specifically doing is going to the liquidity pools that I'm telling you
526 00:46:00 --> 00:46:05 it's going to go to now let I'll let you figure out how that works. So when it
527 00:46:05 --> 00:46:19 drops here and here and in the relative equal lows over here, right there, we
528 00:46:19 --> 00:46:23 can now anticipate that once we get through the bottom of this fair value
529 00:46:23 --> 00:46:28 gap, I've already removed my interest in IT. I just want to see it trade below
530 00:46:28 --> 00:46:32 it. If it were to trade back up to it and bump it like an inversion, fair
531 00:46:32 --> 00:46:38 value gap all the better, fine. But because of this day being manipulated
532 00:46:38 --> 00:46:43 like it is, because of all the factors, Friday, small opening, range gap, large
533 00:46:43 --> 00:46:48 range yesterday, so many things, and we opened inside of yesterday's first
534 00:46:48 --> 00:46:53 presented fair value gap. That's a huge list of things that I need this to start
535 00:46:53 --> 00:46:58 moving in my favor. I'm not a breakout trader that you'll see clearly where I'm
536 00:46:58 --> 00:47:02 getting in it. I'm not I'm not breaking out to the downside and going short
537 00:47:02 --> 00:47:08 based on that. Because I didn't want my gap shown like this. I wanted to take
538 00:47:08 --> 00:47:13 away that volume imbalance, which is this candle sticks closed and this
539 00:47:13 --> 00:47:16 candle sticks open. I'm going to take that away and put it just on the wick
540 00:47:17 --> 00:47:20 like that. So now I'm showing this candle sticks low, this candle sticks
541 00:47:20 --> 00:47:25 high. And I'm ignoring this volume imbalance, because it's the least
542 00:47:25 --> 00:47:27 impactful or important thing.
543 00:47:27 --> 00:47:32 Because this gap the first present, if everybody got from yesterday, we opened
544 00:47:32 --> 00:47:37 in it. So it's been using it. So the algorithms tipping its hand saying, this
545 00:47:37 --> 00:47:41 is the level I'm working with. It's the high of it, the upper quadrant, the
546 00:47:41 --> 00:47:45 middle, the lower quadrant and the low. They're very specific prices. It's not a
547 00:47:45 --> 00:47:53 zone. When we're bearish, we want to see it not go back in the upper half once it
548 00:47:53 --> 00:47:57 goes down, what does that look like? Well, because I'm not looking at the
549 00:47:57 --> 00:48:00 volume of balance here, I can then see this as a breakaway gap, which is what
550 00:48:00 --> 00:48:04 you'll see in the video where I'll annotate it. Okay, I'll show you that
551 00:48:04 --> 00:48:09 this is what I'm viewing, this as a breakaway gap, meaning that, because
552 00:48:09 --> 00:48:13 it's the time of the market wanting to rebook and price lower, and it doesn't
553 00:48:13 --> 00:48:17 have any effect on the buying and selling influence. There's no influence
554 00:48:17 --> 00:48:22 by buyers and sellers causing that. It's just artificially being delivered lower
555 00:48:22 --> 00:48:28 to take liquidity in here. What liquidity is in this area here? Nobody's
556 00:48:28 --> 00:48:33 nobody's actively going in and placing big bets there. But there absolutely was
557 00:48:33 --> 00:48:36 orders resting above this high, but they've already worked there. So what's
558 00:48:36 --> 00:48:39 the opposing liquidity? If this is the buy side that was taken, where's the
559 00:48:39 --> 00:48:45 nearest obvious sell side liquidity pool, right there at that low. So the
560 00:48:45 --> 00:48:48 algorithm doesn't know how many contracts there are. It doesn't know. It
561 00:48:48 --> 00:48:51 doesn't need to know that. It just knows that that low hasn't been traded to so
562 00:48:51 --> 00:48:57 let's start driving lower. And the macro is this. It looks back through the
563 00:48:57 --> 00:49:03 previous session. That's all it's doing, folks. It's very simple. It's going back
564 00:49:03 --> 00:49:08 to the previous session overnight, yesterday afternoon, this morning,
565 00:49:09 --> 00:49:14 London, Asia. It's just cycling back through the previous session. That's all
566 00:49:14 --> 00:49:18 these things are doing. And it's easy. It cannot hide it from you. I don't know
567 00:49:18 --> 00:49:21 why you guys are fighting it, your your arm wrestling, because you want to hold
568 00:49:21 --> 00:49:28 on to your little bullshit concepts, retail horseshit. Every retail trader is
569 00:49:28 --> 00:49:32 looking for something in here, Moving Average crossover, some kind of bullshit
570 00:49:32 --> 00:49:39 Golden Cross. That's dumb. It's stupid. You have no advantage in that. You have
571 00:49:39 --> 00:49:42 every reason to get into a trade, and believe this is why you have made that
572 00:49:42 --> 00:49:45 decision. But that decision has no bearing on why the price is going to go
573 00:49:45 --> 00:49:51 up or down. I'm telling you what it's doing. This gap here tells me that I'm
574 00:49:51 --> 00:49:55 absolutely seeing what I expect to see, which is it's going to drive down to
575 00:49:56 --> 00:50:00 here. So once we enter with this candlestick here, we're. Inside this
576 00:50:00 --> 00:50:05 orange box here, that's yesterday's first traded or, I'm sorry, first
577 00:50:05 --> 00:50:12 presented fair value guy between 930 and 10 o'clock. Once it trades down like
578 00:50:12 --> 00:50:17 this, I'm waiting for it to come right back up and get the high of it. So
579 00:50:17 --> 00:50:21 essentially, what am I doing? I'm selling short when the market's going up
580 00:50:22 --> 00:50:26 on an uptick. That's what high frequency trading algorithms do. That's what smart
581 00:50:26 --> 00:50:30 money does. That's what large fund traders do. They cannot sell short on a
582 00:50:30 --> 00:50:34 downtick. They have to wait for an uptick. Some of them have filters where
583 00:50:34 --> 00:50:38 they have to wait for price to move up for a certain threshold, and then they
584 00:50:38 --> 00:50:41 can start going in and selling short or dropping down for a certain measure of
585 00:50:41 --> 00:50:45 time or a percentage where they can start buying, but you're not privy of
586 00:50:45 --> 00:50:49 all that stuff, because it ain't in your books, okay? But that's the real stuff.
587 00:50:49 --> 00:50:54 That's the real things that go on. So if we can anticipate the market trading in
588 00:50:54 --> 00:50:58 this candlestick here, when it goes up into the high, I have an opportunity to
589 00:50:58 --> 00:51:01 do it there, or I have an opportunity to do it right there, and then what
590 00:51:01 --> 00:51:06 happens? It breaks lower and trades to the middle or consequent approach of
591 00:51:06 --> 00:51:10 that shaded orange area that's yesterday's first presented fair value
592 00:51:10 --> 00:51:15 gap. Once it does this, it gives you a breakaway gap it runs into, it gives an
593 00:51:15 --> 00:51:20 opportunity to trade to the top of it, and then goes to the mid port, or
594 00:51:20 --> 00:51:26 consequent crochet of it middle and goes down below it. It should never listen,
595 00:51:26 --> 00:51:31 okay? This is never, ever, ever repeated anywhere else you can say it. It is, but
596 00:51:31 --> 00:51:35 find it in a book and get your money, because nobody's able to do it. Just
597 00:51:35 --> 00:51:40 talking about what it looks like and what it is. This candlestick here we go,
598 00:51:40 --> 00:51:43 right up and hit the middle for consequent encouragement, and then we
599 00:51:43 --> 00:51:50 leave. We leave that previous day's first presented fair value guy. So now
600 00:51:50 --> 00:51:50 watch, here's
601 00:52:00 --> 00:52:03 that candlestick, right? Here we trade into it and hit consequence encroachment
602 00:52:03 --> 00:52:09 of yesterday's first presented fair value gap. The next candle. Look where
603 00:52:09 --> 00:52:13 my entry is. You see that? Watch when I hover top of it. See it? It's at the
604 00:52:13 --> 00:52:23 high of yesterday's first fair value gap. It's random, right? But ICT, why
605 00:52:23 --> 00:52:27 didn't you trade in the fair value gap? Why didn't you do something else?
606 00:52:27 --> 00:52:31 Because I know what I'm doing. I know what I'm looking for. Okay, so I'm
607 00:52:31 --> 00:52:38 entering at the high that gap, and then I know I'm I'm really on side because I
608 00:52:38 --> 00:52:43 had the breakaway gap. I'm in time, the time of the market being delivered
609 00:52:43 --> 00:52:47 algorithmically, I know that everything is in my favor, that this is going to go
610 00:52:47 --> 00:52:53 lower, contrast that with I hope my harmonic pattern here. I hope my rabid
611 00:52:53 --> 00:52:58 platypus fucking pattern, okay, I hope that it's my moving averages don't get
612 00:52:58 --> 00:53:04 pierced through. I hope my overbought stochastics or divergence is going to be
613 00:53:04 --> 00:53:09 profitable. This time, you are worrying about things that you can't control. I
614 00:53:09 --> 00:53:13 am believing something that I know controls price. Who has the greater
615 00:53:13 --> 00:53:19 faith? Why do you think I talk the way I talk? It sounds arrogant, doesn't it
616 00:53:19 --> 00:53:23 sounds egotistical, narcissistic. That's all the descriptive adjectives that
617 00:53:23 --> 00:53:26 people place on me. And you know what that means? I'm being complimented.
618 00:53:26 --> 00:53:31 That's how I take it, because you see something in me and my students. Because
619 00:53:31 --> 00:53:38 we are doers. We are not talkers, we are fucking doers. We know exactly what
620 00:53:38 --> 00:53:41 we're looking for. We're calm, we're collected and cool. But when some joker
621 00:53:41 --> 00:53:45 comes stepping up here and talking some nonsense about retail this and retail
622 00:53:45 --> 00:53:49 that, or something's better, something that please come, come and get your ass
623 00:53:49 --> 00:53:55 sorted, let's go. Cuz I will show you you know nothing. And I'll be polite
624 00:53:55 --> 00:54:01 about it. I'll be polite about it because I know if you see it, and you
625 00:54:01 --> 00:54:07 taste it, you're convinced, and you're going to be wanting to know, how the
626 00:54:07 --> 00:54:11 hell I did it. How the hell did he do that? How the hell does he know that
627 00:54:11 --> 00:54:15 stuff? Right? It's in my YouTube channel. It's in long discussions like
628 00:54:15 --> 00:54:19 this video here. It's in your eyes. You're thinking, it's taking too much
629 00:54:19 --> 00:54:22 time. It's taking so much time. But I'm teaching you, I'm showing you, this is
630 00:54:22 --> 00:54:26 what you're supposed to be looking for. Because if there is an algorithm, it's
631 00:54:26 --> 00:54:30 going to do these things every single day, every single day. It's going to
632 00:54:30 --> 00:54:37 repeat these same types of things. Getting short here. Then it trades down.
633 00:54:38 --> 00:54:45 It does not take the relative equal lows out yet on this drop down here. But what
634 00:54:45 --> 00:54:51 does it do? It trades all the way back up to some random level. It's the low of
635 00:54:51 --> 00:54:58 yesterday's first presented fair value gap. That candlestick hitting. It's the
636 00:54:58 --> 00:55:02 first candlestick it touches. It. It because I'm marketing, and you can see
637 00:55:02 --> 00:55:05 this, I have to do the market order because I have people believing that
638 00:55:05 --> 00:55:09 it's Market Replay. And you can't use the upper left hand corner buttons for
639 00:55:09 --> 00:55:12 the buying and selling on Market Replay, because they're down somewhere over
640 00:55:12 --> 00:55:18 here. So I do it that way. I could have very, very precise entries if I'm using
641 00:55:18 --> 00:55:21 limit orders, and I will be doing limit orders in his mentorship. So that way
642 00:55:21 --> 00:55:25 you can see how to get really good, tight entries. So that way your stops
643 00:55:25 --> 00:55:29 can be a little bit more meaningful in terms of managing the risk. So I'll
644 00:55:29 --> 00:55:33 teach you how to be more precise about your entries. But Caleb doesn't need to
645 00:55:33 --> 00:55:37 know that yet. He just needs to know how to engage price and see what it's like
646 00:55:37 --> 00:55:41 to get in and watch what price does afterwards. So getting in there, and
647 00:55:41 --> 00:55:45 then ultimately it trades back down and goes to that, see that little tick right
648 00:55:45 --> 00:55:50 here that's below relative equal lows over here. So entering here at the top
649 00:55:51 --> 00:55:56 of yesterday's fair value I got, and getting out at the low underneath the
650 00:55:56 --> 00:56:01 relative Eagle lows I gave you on Twitter. That's not Market Replay,
651 00:56:01 --> 00:56:07 folks. Okay, this is all the really, real shit. Okay, just because I'm
652 00:56:07 --> 00:56:11 teaching in a demo or paper trading account for my own personal protection,
653 00:56:11 --> 00:56:15 because I'm not licensed to get trade advice, all I'm talking to you about is
654 00:56:15 --> 00:56:20 how I know these candlesticks are going to do certain things. I am not promising
655 00:56:20 --> 00:56:24 that it's going to make you money. I can't do that. I can't promise that
656 00:56:24 --> 00:56:27 you're going to get rich. I can't but I can promise you that you're going to
657 00:56:27 --> 00:56:31 learn how to read these candlesticks better than anybody else can teach you.
658 00:56:31 --> 00:56:35 And some have, some of my students have gotten really good at and they said, I'm
659 00:56:35 --> 00:56:38 going to make my own decision. And these are for the people that left this
660 00:56:38 --> 00:56:45 comment. How do you know when to trade with real money? You'll know. I'm never
661 00:56:45 --> 00:56:48 going to tell you you're ready to trade with real money. You're going to know
662 00:56:48 --> 00:56:54 because you're so bored of doing it in paper and it's so consistent, the
663 00:56:54 --> 00:56:57 natural progression is going to be you're going to try and see what
664 00:56:57 --> 00:57:01 happens. And I never tell you to do that, but when you feel like you're
665 00:57:01 --> 00:57:04 going to do it and you don't even need to ask somebody else's opinion, then
666 00:57:04 --> 00:57:08 that's when you're going to be ready. But unfortunately, people see a video,
667 00:57:08 --> 00:57:12 or they watch a group of people trading, and they get caught up in the frenzy of
668 00:57:12 --> 00:57:16 them being right once in a while, and that's unfortunately what happens when
669 00:57:16 --> 00:57:19 you watch these influencers that are live streaming. They have affiliate
670 00:57:19 --> 00:57:22 links at the bottom, and not all of them are assholes, but they all do have this
671 00:57:22 --> 00:57:27 same characteristic. They're out there putting it in front of you and you
672 00:57:27 --> 00:57:31 because you have selective sight, selective hearing, much like trolls.
673 00:57:31 --> 00:57:33 They don't see the proof that I'm providing. They don't see all the
674 00:57:33 --> 00:57:38 profitable students. They don't see it. They don't want to see it, the people
675 00:57:38 --> 00:57:42 that watch these other live streamers, and when they get it right, they think,
676 00:57:42 --> 00:57:44 Wow, if I would have did that, I could have made that money today. And then
677 00:57:44 --> 00:57:47 what they do is they pay for the affiliate link to get a funded account
678 00:57:47 --> 00:57:51 challenge, and they go in, they follow the same person tomorrow, and the luck
679 00:57:51 --> 00:57:56 that they had the previous day, because that's 99% of what you're seeing. They
680 00:57:56 --> 00:57:59 fail in front of you, and you copied them. You don't have any idea why they
681 00:57:59 --> 00:58:03 took the trade, but you're waiting for that. Feel good. Mormon, fuzzy. See, I
682 00:58:03 --> 00:58:08 don't do that. I'm teaching you how to do this on your own. Because no one's
683 00:58:08 --> 00:58:11 going to tell me that I haven't created profitable students, because it's all
684 00:58:11 --> 00:58:16 over the place. And once you are a profitable student, no one's going to
685 00:58:16 --> 00:58:21 tell you what you've learned is made up, contrived nonsense, make believe. Okay,
686 00:58:22 --> 00:58:26 they're going to give you every excuse, but you're the one making money. You're
687 00:58:26 --> 00:58:29 the one that stops your job, and you stay home, and you live a life that's
688 00:58:29 --> 00:58:33 different, and they're going to be hating you any chance that they can have
689 00:58:33 --> 00:58:36 to say something negative at that time. Who cares what they say? But in the
690 00:58:36 --> 00:58:40 beginning, you have to just weigh it out. Who's doing what I'm teaching you
691 00:58:40 --> 00:58:45 for free. There's no obligation for you to come back to my YouTube channel.
692 00:58:45 --> 00:58:51 There's zero obligation. But I keep producing, don't I, and you can't get
693 00:58:51 --> 00:58:56 away from me, because now the bug has bit you, and when you taste and see this
694 00:58:56 --> 00:59:01 stuff happen in your own in your own hands, it's over for you. You'll never
695 00:59:01 --> 00:59:04 want to look at the market any other way, and you're going to want to learn
696 00:59:04 --> 00:59:08 more, and then you become addicted to it, and you can't be an addict without
697 00:59:08 --> 00:59:15 ICT in the name. You're one of the brood. And that's, unfortunately, on the
698 00:59:15 --> 00:59:19 outside, looks like a cult, but I don't have any control over you. I'm giving
699 00:59:19 --> 00:59:23 you the freedom. I'm giving you the freedom to have an independent thought
700 00:59:23 --> 00:59:29 process that allows you to make your future whatever you want it to be, and
701 00:59:29 --> 00:59:34 that's exciting. So anyway, I did a lot of trail stop losses for the purposes of
702 00:59:34 --> 00:59:40 showing Caleb and where I placed a stop would be based on what his expectation
703 00:59:40 --> 00:59:45 would be in terms of placing a stop loss, and you'll see that in the video,
704 00:59:45 --> 00:59:48 but these, that's what this is here, that's being stopped out, and then
705 00:59:49 --> 00:59:55 that's being stopped out, and then I went back in. This is not something for
706 00:59:55 --> 00:59:58 him. This is just me, because I knew I was going to talk about this today with
707 00:59:58 --> 01:00:05 y'all. Is this is me twisting and. So over here, if you look at this
708 01:00:05 --> 01:00:11 candlestick right there, this long lowest candlestick, let me get it out of
709 01:00:11 --> 01:00:17 the the view of my little watermark here, this, this candlestick right here
710 01:00:17 --> 01:00:22 is the lowest of all the lows in here, before we see this drop down. Can you
711 01:00:22 --> 01:00:28 agree with that this one here is not being factored yet, not for my decision.
712 01:00:28 --> 01:00:33 While I'm watching the candlesticks over here, I'm looking at that one. So what
713 01:00:33 --> 01:00:41 I'm seeing is this. I'm measuring the body down to the low okay, if you ever
714 01:00:41 --> 01:00:45 see my charts, have one single line, and it just looks like it's floating out
715 01:00:45 --> 01:00:49 there around nothing. This is anchored to nothing that makes any sense. If you
716 01:00:49 --> 01:00:54 look back at my old recordings, even stuff on baby pips, you'll see me
717 01:00:54 --> 01:00:57 anchoring there, and that's the consequent encroachment of this discount
718 01:00:57 --> 01:01:07 wick. If I'm bearish, I can enter at that price. See that tick right here.
719 01:01:07 --> 01:01:11 Watch, see that. What's the price of the consequent crush of that width, right
720 01:01:11 --> 01:01:22 there? 19,009 74.25, tell me who is Daddy. You're damn right. It's Poppy
721 01:01:22 --> 01:01:28 ICT. It's Poppy ICT, baby. It's repeating phenomena of precision,
722 01:01:29 --> 01:01:34 perfect. It's perfect. Getting at the high of yesterday's Fairbank yet that
723 01:01:34 --> 01:01:37 nobody would have been looking at it. Chris Laurie would have been talking
724 01:01:37 --> 01:01:42 about that yesterday and into today. Nope. Wouldn't happened. White cough
725 01:01:42 --> 01:01:47 wouldn't have done it. Nobody getting out below the short term low relative
726 01:01:47 --> 01:01:53 equal lows over here, there. But now here, I know that we're going to dig a
727 01:01:53 --> 01:01:59 little bit deeper, so this level here, let's scroll on over here and find out
728 01:01:59 --> 01:02:00 that mystery is,
729 01:02:02 --> 01:02:07 I know you love it, don't you? I can't wait to trade this way. I know. What do
730 01:02:07 --> 01:02:12 you think this is? It looks random, doesn't it? All this is, is the same
731 01:02:12 --> 01:02:15 thing? It's the consequent encroachment of that discount width. But now I'm
732 01:02:15 --> 01:02:24 going to treat that as a target. So now what is that price? Nine, 30.50 so I
733 01:02:24 --> 01:02:31 need that price or lower, and there's my exit, right? There. Slipped a little
734 01:02:31 --> 01:02:40 bit. 19,009 30.75 so it's not bad. It's pretty close, right? Close enough for
735 01:02:40 --> 01:02:44 government work, right? But all this drop here, I don't need that. You don't
736 01:02:44 --> 01:02:48 need that either. And then what does it do? It starts to rally right back up. So
737 01:02:50 --> 01:02:55 all these things drawing already back up into yesterday's first presented,
738 01:02:55 --> 01:03:05 Fairbank drops, rallies back up with it working. Yesterday's fair value gap, but
739 01:03:05 --> 01:03:15 now late in the day, we're returning to first fair value gap. That's true value
740 01:03:16 --> 01:03:22 on the daily range. Your first presented fair value gap between 930 and 10
741 01:03:22 --> 01:03:27 o'clock. You need to know what that is, because the algorithm is going to refer
742 01:03:27 --> 01:03:33 back to it. Unless it's a trending day, it's going to refer back to it. I have
743 01:03:33 --> 01:03:37 done so many trades without pointing this to you, but if you go back and look
744 01:03:37 --> 01:03:41 at them, you're going to see that this is a lot of what I'm doing. And again,
745 01:03:41 --> 01:03:44 because I never intended to teach it to you. And you can be mad at me and say,
746 01:03:44 --> 01:03:46 I'm gonna ask all your dick you should have. You should have taught this
747 01:03:46 --> 01:03:51 sooner. Just be thankful that I am. Just be appreciative that my son is. It's
748 01:03:51 --> 01:03:54 encouraging me to do this, because none of you could have encouraged me enough
749 01:03:54 --> 01:03:58 to do it. I never wanted to do it, but he just said, Look, just let him see it,
750 01:03:59 --> 01:04:03 so you're seeing it. So anyway, that's the business on that. Now, real quick,
751 01:04:03 --> 01:04:15 let's get in through the the the US 100 the the gap here, 414, previous day and
752 01:04:15 --> 01:04:27 930 opening price, we don't have the Is it us 100 I'm just going to use this
753 01:04:27 --> 01:04:30 one. I'm not saying that that's a good broker. I'm not saying that you should
754 01:04:30 --> 01:04:33 trade through them. I'm just saying that this is something that you need to
755 01:04:33 --> 01:04:37 determine on your own. And if you do what I'm showing you here, you should be
756 01:04:37 --> 01:04:42 able to track price as close as you can without using the actual futures market.
757 01:04:43 --> 01:04:47 So if we pull that up like this, you can already see that I have the opening
758 01:04:47 --> 01:04:48 price at 930 you.
759 01:05:06 --> 01:05:10 There's the opening price at 930 and this settlement price here is
760 01:05:10 --> 01:05:21 yesterday's same 414 closing. So when we get to the candlestick at 414 yesterday.
761 01:05:27 --> 01:05:32 That's this candlestick right there at 414 the closing price. So while we don't
762 01:05:32 --> 01:05:40 have the break in trading between 415 to six o'clock restart, and we don't have
763 01:05:40 --> 01:05:46 this, the break from 415 yesterday to 930 in the morning in the CFD market,
764 01:05:46 --> 01:05:51 which is what this is. It is not necessary. All you have to do is know
765 01:05:51 --> 01:05:57 the same price points and you'll have the same information here. Now the gap,
766 01:05:57 --> 01:06:04 the first gap for today. There is a volume imbalance here, and there's a
767 01:06:04 --> 01:06:10 volume imbalance here. Two schools of thought here, if you are using a CFD,
768 01:06:10 --> 01:06:14 always include your volume imbalances. Always don't do what I did today,
769 01:06:14 --> 01:06:18 because that's this experience. Always include them. That's why I teach if you
770 01:06:18 --> 01:06:24 see a fair value gap, always include the volume of balance because of CFD and
771 01:06:24 --> 01:06:29 futures, I'm sorry, forex pairs, your brokers are going to screw you, and
772 01:06:29 --> 01:06:32 that's just the truth, and you're going to have different pricing. So if you
773 01:06:32 --> 01:06:35 don't include the volume imbalances, you're not going to have a true
774 01:06:35 --> 01:06:40 depiction of what you should be focusing on. So you can see here with the volume
775 01:06:40 --> 01:06:43 imbalance is included, and that means that this candle is closed, the body's
776 01:06:43 --> 01:06:48 top to the next candle is open. That little separation that's the volume
777 01:06:48 --> 01:06:52 imbalance, just like this separation between this candle sticks close or the
778 01:06:52 --> 01:06:56 high part of the body, not the wick, and then the opening of this candlestick,
779 01:06:56 --> 01:07:01 there's a small look at it like this. See that separation between the two
780 01:07:01 --> 01:07:05 bodies there and the separation right here. That's my volume imbalance. That's
781 01:07:05 --> 01:07:11 not in any other books. Okay, that's, that's you seeing what the what the
782 01:07:11 --> 01:07:22 algorithm will refer back to market here at 950 that's the macro time, 951, start
783 01:07:22 --> 01:07:29 going lower, targeting, sell side, targeting, relative equal lows over
784 01:07:29 --> 01:07:35 here. Same stuff happened over here. Ain't this a wick that I just talked
785 01:07:35 --> 01:07:42 about on the futures contract. Midpoint of that wick get short there, and it
786 01:07:42 --> 01:07:49 drops. Everything's the same. Okay, so if you're trading with CFDs, all you
787 01:07:49 --> 01:07:54 have to do is use the times, because that's the most important thing, the
788 01:07:54 --> 01:07:59 times I'm telling you at specific price points, because it's first the time, and
789 01:07:59 --> 01:08:03 then what price around that time if you do the same things I'm showing you here
790 01:08:03 --> 01:08:07 within the CFD markets. And the same thing is for us 30 if you want to trade
791 01:08:07 --> 01:08:12 the Dow, if you want to trade the US, 500 that's the equivalent to the s, p
792 01:08:12 --> 01:08:16 market, just in a CFD format. The same thing. It's the same stuff, folks,
793 01:08:16 --> 01:08:20 you're just not seeing the same price, because clearly they're not going to
794 01:08:21 --> 01:08:24 agree. But that's all I wanted to show you today, because my battery is warning
795 01:08:24 --> 01:08:30 me that I'm getting ready to see my laptop shut down, and I used that as my
796 01:08:30 --> 01:08:33 timer, so I was going to go as long as I could. And we came all the way back up
797 01:08:34 --> 01:08:41 to here and cleared out the high of the day. So hopefully you found this in my
798 01:08:41 --> 01:08:45 insightful hopefully you can calm down a little bit. If you're a CFD trader and
799 01:08:45 --> 01:08:49 you're still in the Forex world, you can do everything that I'm doing here with
800 01:08:49 --> 01:08:54 reading price in that CFD you just need to know how to navigate your chart.
801 01:08:54 --> 01:08:59 That's all and it's all we showed here today, and we will be back at it again
802 01:08:59 --> 01:09:03 next week, and I'm going to have homework for you every single night, so
803 01:09:03 --> 01:09:07 it's going to feel like university all over again. Enjoy your weekend. I'm
804 01:09:08 --> 01:09:12 going to have a Twitter space tomorrow. It'll probably be a real short one, and
805 01:09:12 --> 01:09:15 just bring some road snacks and enjoy your weekend, and I'll talk to you
806 01:09:15 --> 01:09:19 tomorrow. Lord willing.