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2 |1 |00:00:20 ~-~-> 00:00:29 |ICT: All right, Kayla, we're going to be drawing a contrast between a seek and
3 |2 |00:00:29 ~-~-> 00:00:34 |destroy market profile and a high resistance liquidity market profile.
4 |3 |00:00:36 ~-~-> 00:00:42 |They have similar characteristics, but the main contrast is that a seek and
5 |4 |00:00:42 ~-~-> 00:00:47 |destroy profile just basically stays inside of the middle of the range that's
6 |5 |00:00:47 ~-~-> 00:00:54 |defined? So if we look at the September 23 2024 you can find it in the 2024
7 |6 |00:00:55 ~-~-> 00:01:04 |mentorship playlist on YouTube. It's the title, how to avoid, seek and destroy a
8 |7 |00:01:04 ~-~-> 00:01:08 |market profile, something to that effect. But it's the recording that was
9 |8 |00:01:08 ~-~-> 00:01:13 |recorded on September 23 2024 this is a five minute chart, and I'm not going to
10 |9 |00:01:13 ~-~-> 00:01:18 |show you the one minute and 15 second charts because of that video. You can go
11 |10 |00:01:18 ~-~-> 00:01:22 |back and look at it and watch me actually call it out live how it was
12 |11 |00:01:22 ~-~-> 00:01:28 |problematic. And the main takeaway is this, at seven o'clock in the morning,
13 |12 |00:01:28 ~-~-> 00:01:32 |what will happen is, is the market will create a short term low, short term
14 |13 |00:01:32 ~-~-> 00:01:37 |high. The high will be taken out. Each individual high gets taken out, every
15 |14 |00:01:37 ~-~-> 00:01:42 |individual low gets taken out, and it keeps coming back to the middle. Now
16 |15 |00:01:42 ~-~-> 00:01:45 |you're not going to know what the middle is early on, but soon as you start
17 |16 |00:01:45 ~-~-> 00:01:50 |seeing the price just cannot find its way out of just taking the highs and
18 |17 |00:01:50 ~-~-> 00:01:54 |lows and coming right back to the middle. That's usually indicative of a
19 |18 |00:01:54 ~-~-> 00:01:58 |seeking destroy. And just watch that recording again on September 23 2024
20 |19 |00:01:58 ~-~-> 00:02:02 |because that's me literally explaining it as it's happening, how to identify
21 |20 |00:02:02 ~-~-> 00:02:08 |it. Market trades above the short term high here comes down, creates a low,
22 |21 |00:02:09 ~-~-> 00:02:15 |higher high here, multiple times relative equal lows. They take them and
23 |22 |00:02:15 ~-~-> 00:02:19 |ultimately take out the low of the day and come right back in to close at the
24 |23 |00:02:19 ~-~-> 00:02:23 |middle of the range. So all of this range here, if you look at the highest
25 |24 |00:02:23 ~-~-> 00:02:29 |high to the lowest low, and put a Fibonacci 50% level, and you'll see we
26 |25 |00:02:29 ~-~-> 00:02:33 |basically close right in the middle range, seek and destroy will absolutely
27 |26 |00:02:33 ~-~-> 00:02:36 |burn your account. If you think that you're going to be able to capture
28 |27 |00:02:36 ~-~-> 00:02:40 |something inside this day, chances are going to fall victim to it. I certainly
29 |28 |00:02:40 ~-~-> 00:02:45 |did fall victim to this in the mid 90s, and I was first starting out. I didn't
30 |29 |00:02:45 ~-~-> 00:02:49 |know anything about this, so it was something I had to learn about by
31 |30 |00:02:49 ~-~-> 00:02:53 |getting beat up by it. All right, so now it's contrast the secret destroy market
32 |31 |00:02:53 ~-~-> 00:03:03 |profile with a high resistance liquidity market profile. So all right, so we have
33 |32 |00:03:03 ~-~-> 00:03:08 |the charts here on a five minute basis, relative equal lows here. I mentioned
34 |33 |00:03:08 ~-~-> 00:03:14 |that on Friday, September 27 2024 is live stream, and the buy side, we swept
35 |34 |00:03:14 ~-~-> 00:03:20 |that. And the difference between a seek and destroy profile and a high
36 |35 |00:03:20 ~-~-> 00:03:26 |resistance liquidity profile is that seek and destroy reverts back to the
37 |36 |00:03:26 ~-~-> 00:03:33 |middle of the range. It doesn't really make any meaningful protraction that is
38 |37 |00:03:33 ~-~-> 00:03:37 |extended throughout the day. It just keeps higher highs lower lows, but right
39 |38 |00:03:37 ~-~-> 00:03:42 |back to the moon. So it's not a trending day, it's not a consolidation day. It is
40 |39 |00:03:42 ~-~-> 00:03:46 |a seek and destroy day. So it's literally this going after liquidity,
41 |40 |00:03:46 ~-~-> 00:03:52 |and it's pausing while allowing the market to either build sentiment or it's
42 |41 |00:03:52 ~-~-> 00:03:56 |meant to break up or disrupt the present market sentiment that's in play at the
43 |42 |00:03:56 ~-~-> 00:04:01 |time when that day is underway. So if you look at the difference between this
44 |43 |00:04:01 ~-~-> 00:04:06 |day here, we had liquidity taken and, yes, the market went down and took the
45 |44 |00:04:06 ~-~-> 00:04:10 |relative equal lows here, where this unfinished business was left in play. So
46 |45 |00:04:10 ~-~-> 00:04:14 |when they create these two lows that are relatively equal, the second one to the
47 |46 |00:04:14 ~-~-> 00:04:19 |right of this one here, that's slightly higher, so that validates this as a high
48 |47 |00:04:19 ~-~-> 00:04:22 |probability, relative equal low. That means that this is going to be a prime
49 |48 |00:04:22 ~-~-> 00:04:28 |candidate for the market to want to reprice back down here. We ran the highs
50 |49 |00:04:29 ~-~-> 00:04:34 |here, so that drop down took us down into that very sell side liquidity pool
51 |50 |00:04:34 ~-~-> 00:04:40 |right there. So while the market does a lot of give and take back and forth,
52 |51 |00:04:41 ~-~-> 00:04:49 |looking really violent, even though it goes lower. It's that very nature that I
53 |52 |00:04:49 ~-~-> 00:04:55 |dub this as a high resistance liquidity profile. So it does run to liquidity,
54 |53 |00:04:55 ~-~-> 00:05:01 |but it doesn't do it in any inefficient manner. It does it. Very efficiently,
55 |54 |00:05:01 ~-~-> 00:05:05 |meaning high resistance. It's going to get there, but it's not going to go
56 |55 |00:05:05 ~-~-> 00:05:09 |there in a straight shot. All right, let's zoom in on that little area here
57 |56 |00:05:09 ~-~-> 00:05:14 |on Friday. All right, so again, we're looking at the finance chart, and the
58 |57 |00:05:14 ~-~-> 00:05:20 |market rallies up ahead of the 930 opening bell, which is here. And we have
59 |58 |00:05:20 ~-~-> 00:05:24 |a gap at the 930 candlestick. That is not your gap, that's not your fair value
60 |59 |00:05:24 ~-~-> 00:05:29 |get to work with. So you have to use a later fair value gap. So has to be 931
61 |60 |00:05:30 ~-~-> 00:05:37 |or later than that. But between 931 or 931 rather to 10am Eastern Time, you're
62 |61 |00:05:37 ~-~-> 00:05:43 |looking for that one minute fair value gap to frame your trade on market.
63 |62 |00:05:43 ~-~-> 00:05:47 |Trades up creates a Judas swing. Breaks lower and look at how back and forth.
64 |63 |00:05:47 ~-~-> 00:05:53 |Every individual candlestick overlaps the previous range. So all of this back
65 |64 |00:05:53 ~-~-> 00:05:57 |and forth, price action, it's like a trading range. Market moves a little bit
66 |65 |00:05:57 ~-~-> 00:06:00 |lower, creates a new trading range. Moves a little bit lower, creates a new
67 |66 |00:06:00 ~-~-> 00:06:04 |trading range. Moves a little bit lower, creates a new trading range comes back
68 |67 |00:06:04 ~-~-> 00:06:09 |up, creates relative equal highs, drops down, fails to take the low, comes back
69 |68 |00:06:09 ~-~-> 00:06:13 |up, wipes the buy side above these relative equal highs, and then sells
70 |69 |00:06:13 ~-~-> 00:06:18 |off, right there. Now this part of this move right here, this, this is a low
71 |70 |00:06:18 ~-~-> 00:06:23 |resistance liquidity run that right there is a real quick, sudden run and
72 |71 |00:06:23 ~-~-> 00:06:28 |see the inefficiency is left here that that's a stark contrast between all of
73 |72 |00:06:28 ~-~-> 00:06:37 |this back and forth, very efficient delivery. This delivery here is a low
74 |73 |00:06:37 ~-~-> 00:06:41 |resistance liquidity run. So what makes it low resistance? It creates these
75 |74 |00:06:41 ~-~-> 00:06:46 |large buy side and balance cell sign efficiencies and sell side imbalance,
76 |75 |00:06:46 ~-~-> 00:06:50 |buy side efficiencies, these singular candles, okay, whenever you have these
77 |76 |00:06:50 ~-~-> 00:06:56 |like that, that is a hallmark of a low resistance liquidity run. You don't see
78 |77 |00:06:56 ~-~-> 00:07:00 |that in here. It's a lot of back and forth overlapping anything that would be
79 |78 |00:07:00 ~-~-> 00:07:05 |a gap. They keep repricing back over top of it. That is redelivery. Okay, so
80 |79 |00:07:05 ~-~-> 00:07:08 |you're gonna get caught up in a lot of retracements that may stop you out.
81 |80 |00:07:08 ~-~-> 00:07:12 |You'll have to look for the pattern that I mentioned as a turtle soup, where
82 |81 |00:07:12 ~-~-> 00:07:15 |they're running the buy stops when it's bearish, or running the cell stops when
83 |82 |00:07:15 ~-~-> 00:07:19 |it's bullish, but ultimately it trades down to what we're outlining it on
84 |83 |00:07:20 ~-~-> 00:07:27 |Friday. But let's take a look at a one minute chart. All right, here's a one
85 |84 |00:07:27 ~-~-> 00:07:32 |minute chart at 930 fair value gap. It trades up into it, but right here,
86 |85 |00:07:32 ~-~-> 00:07:36 |that's your fair value gap. That's the one you're going to utilize. Okay? So
87 |86 |00:07:36 ~-~-> 00:07:40 |you can see on a one minute chart, it still doesn't really thin out any of the
88 |87 |00:07:40 ~-~-> 00:07:43 |price action. It's still very efficiently back and forth. Each
89 |88 |00:07:43 ~-~-> 00:07:46 |individual candles that could keeps overlapping the previous range in any
90 |89 |00:07:46 ~-~-> 00:07:52 |type of fair value gap, it quickly wants to reprice to and redeliver. We have a
91 |90 |00:07:52 ~-~-> 00:07:56 |small one right in here. You see it goes right up into it there, but it's more
92 |91 |00:07:56 ~-~-> 00:08:00 |appropriately described as a turtle suit. And we'll look at some of them as
93 |92 |00:08:00 ~-~-> 00:08:04 |we go through, but ultimately, you can see we have a nice little run here to
94 |93 |00:08:04 ~-~-> 00:08:09 |take the relative equal highs, and then we have it dropped down after taking the
95 |94 |00:08:09 ~-~-> 00:08:13 |relative equal highs, it's going to go after the relative equal lows and the
96 |95 |00:08:13 ~-~-> 00:08:17 |sell side liquidity pool here that was shown to you on a five minute chart, and
97 |96 |00:08:18 ~-~-> 00:08:26 |A nice precipitous drop there. This was why your trade in, your your combine
98 |97 |00:08:26 ~-~-> 00:08:30 |panned out really well. And if you would have kept your limit order in there, you
99 |98 |00:08:30 ~-~-> 00:08:34 |probably would have overshot the profit objective. You're not supposed to go
100 |99 |00:08:34 ~-~-> 00:08:40 |over 50% of whatever it is they're trying to tell you at the aim for and
101 |100 |00:08:40 ~-~-> 00:08:45 |you had part of this run here as well. So you had two trades inside of a high
102 |101 |00:08:45 ~-~-> 00:08:50 |resistance liquidity profile. Both your trades, the long and the short were both
103 |102 |00:08:50 ~-~-> 00:08:58 |low resistance liquidity runs. Right? You see a 15 second chart here, opening
104 |103 |00:08:58 ~-~-> 00:09:03 |range gap shaded here in this I'm I
105 |104 |00:09:03 ~-~-> 00:09:04 |don't know color that is.
106 |105 |00:09:05 ~-~-> 00:09:09 |And then we have the first presented fair value gap. That's your fair value
107 |106 |00:09:09 ~-~-> 00:09:14 |gap, Caleb, that's the one you're looking for. It has to form after 930 so
108 |107 |00:09:14 ~-~-> 00:09:19 |931 is the earliest it can form, up to 10 o'clock in the morning. So it was
109 |108 |00:09:19 ~-~-> 00:09:23 |seen on the one minute chart before we dropped down the 15 second chart. Second
110 |109 |00:09:23 ~-~-> 00:09:26 |chart. Solid coated here. It rallies up. This is the Judith swing. I mentioned in
111 |110 |00:09:26 ~-~-> 00:09:32 |the live stream that this is actually good. Leaving the upper portion didn't
112 |111 |00:09:32 ~-~-> 00:09:38 |completely close it into the opening range gap high, so dropping down that
113 |112 |00:09:38 ~-~-> 00:09:41 |return back into your fair value gap. That's your tree. That's your entry.
114 |113 |00:09:41 ~-~-> 00:09:45 |That's how you would take your setup. But your stop loss, as I mentioned in
115 |114 |00:09:45 ~-~-> 00:09:48 |the live stream, would have been twice this fair value gaps height. So your
116 |115 |00:09:48 ~-~-> 00:09:52 |your stop would have to be a little bit higher than normal. But that's how you
117 |116 |00:09:52 ~-~-> 00:09:55 |would trade, a high resistance liquidity run, holding that type of trade and not
118 |117 |00:09:55 ~-~-> 00:09:58 |chasing it down through any of this, because you're likely to get stopped
119 |118 |00:09:58 ~-~-> 00:10:04 |out. I had. Add this high here, framed with the FIB and down to a low that's
120 |119 |00:10:04 ~-~-> 00:10:09 |prior to running out that relative equal low. And the Fibonacci level, 50% here
121 |120 |00:10:09 ~-~-> 00:10:14 |is a result of that. So what this is saying is, at this price level and
122 |121 |00:10:14 ~-~-> 00:10:19 |higher, that's a premium market, so a high resistance liquidity run profile,
123 |122 |00:10:19 ~-~-> 00:10:24 |when you can frame the premium to discount. If it's a bearish unfinished
124 |123 |00:10:24 ~-~-> 00:10:27 |business that you're aiming for, like a sell side liquidity pool, as it was in
125 |124 |00:10:27 ~-~-> 00:10:31 |the 27th of September, you're looking for the market to decline. So because
126 |125 |00:10:31 ~-~-> 00:10:36 |it's high resistance liquidity profile, it's going to not have inefficiencies.
127 |126 |00:10:36 ~-~-> 00:10:40 |It's going to be running for buy stops. So they run the market higher to take
128 |127 |00:10:40 ~-~-> 00:10:44 |the buy stops and then sells off. They run the buy stops and then sell off.
129 |128 |00:10:44 ~-~-> 00:10:50 |They run the buy stops, sell off, run the buy stops, sell off, run the buy
130 |129 |00:10:50 ~-~-> 00:10:56 |stops, sell off. So anytime that the market has created a turtle suit above
131 |130 |00:10:56 ~-~-> 00:11:01 |this red line, you're in a premium market relative to this high here. Now,
132 |131 |00:11:01 ~-~-> 00:11:05 |why this high here? Because after we created this price leg at the high down
133 |132 |00:11:05 ~-~-> 00:11:10 |to this low, and we retrace back in, it's creating consolidation that still
134 |133 |00:11:10 ~-~-> 00:11:15 |is aiming for a much lower target. So we're looking at this area here as a
135 |134 |00:11:15 ~-~-> 00:11:20 |deep premium that could be used to pyramid. You can add another position
136 |135 |00:11:20 ~-~-> 00:11:24 |entry from here, but that would be the only one that I would think that was
137 |136 |00:11:24 ~-~-> 00:11:29 |appropriate. Chasing all that down here. If you start building in a larger
138 |137 |00:11:29 ~-~-> 00:11:34 |position on high resistance liquidity profile, chances are, as you add more to
139 |138 |00:11:34 ~-~-> 00:11:38 |your pyramided position, which you'll do later on, when you get better at it,
140 |139 |00:11:38 ~-~-> 00:11:45 |your core average price will drop lower, meaning that you're you're more prone to
141 |140 |00:11:45 ~-~-> 00:11:53 |get to a net loss position if you start building up a lot. So if you, if you add
142 |141 |00:11:53 ~-~-> 00:11:57 |anything on a day like this, it's just do a single like unlike where that'll do
143 |142 |00:11:58 ~-~-> 00:12:01 |six contracts in something like this, and then I can add four more here go on
144 |143 |00:12:01 ~-~-> 00:12:05 |a day like this. It wouldn't be like that. It would be six and then add one,
145 |144 |00:12:05 ~-~-> 00:12:09 |because it's not going to move my core entry or average price entry
146 |145 |00:12:09 ~-~-> 00:12:13 |significantly lower, which would mean that it'd be easier for the market get
147 |146 |00:12:13 ~-~-> 00:12:18 |back up and take me to a net loss in any retracements. Consolidation here looks
148 |147 |00:12:18 ~-~-> 00:12:21 |like a bull flag. Retail traders see that. They like that. I mentioned it in
149 |148 |00:12:21 ~-~-> 00:12:25 |live stream. That's a turtle suit and then sells off. The main difference
150 |149 |00:12:25 ~-~-> 00:12:29 |between high resistance liquidity profiles and the seek and destroy. Seek
151 |150 |00:12:29 ~-~-> 00:12:32 |and Destroy is basically untradable. Okay, you're not going to want to trade
152 |151 |00:12:32 ~-~-> 00:12:38 |them, and the high resistance liquidity profiles are tradable, but you have to
153 |152 |00:12:38 ~-~-> 00:12:42 |keep your stop loss really, really close to your entry and only do one small
154 |153 |00:12:42 ~-~-> 00:12:46 |pyramid, if at all, and then just submit yourself to time you.
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