Skip to Content
Last modified by Drunk Monkey on 2025-04-03 12:11
Show last authors
1 (% class="hover min" %)
2 |1 |00:00:35 ~-~-> 00:00:39 |ICT: Welcome back, folks. So we're going to get right into it. In this lecture,
3 |2 |00:00:39 ~-~-> 00:00:43 |we're going to be covering how to visually read actual order flow without
4 |3 |00:00:43 ~-~-> 00:00:50 |retail gimmicks like level two data, depth of market ladders, even footprint
5 |4 |00:00:52 ~-~-> 00:00:58 |and to anticipate my fair value gaps remaining open, how to properly handle
6 |5 |00:00:58 ~-~-> 00:01:04 |price inefficiencies at all times when the forecast breakaway gaps and
7 |6 |00:01:04 ~-~-> 00:01:11 |precisely where now select ultra precise stop loss placement with no fear. All
8 |7 |00:01:18 ~-~-> 00:01:23 |right, we'll be doing a short little lecture here, and forex review. So I'll
9 |8 |00:01:23 ~-~-> 00:01:28 |be covering the dollar index, and then the POUND DOLLAR currency pair, and then
10 |9 |00:01:28 ~-~-> 00:01:32 |we'll be teaching the content that will allow me, obviously, to knock off
11 |10 |00:01:32 ~-~-> 00:01:37 |several topics all in one fell swoop. In one video, I'll be able to tackle
12 |11 |00:01:37 ~-~-> 00:01:41 |lectures that I had in mind. So real short, concise, rate to the point too.
13 |12 |00:01:41 ~-~-> 00:01:46 |So let's zoom in on this. Get started all right. On left hand side, you can
14 |13 |00:01:46 ~-~-> 00:01:52 |see $1 Index daily chart, and always tell what time frame I'm using by this
15 |14 |00:01:52 ~-~-> 00:01:57 |upper left hand corner. And this was the gap down here that I wanted to see if we
16 |15 |00:01:57 ~-~-> 00:02:01 |can get below it and use it as an inversion fair value gap, and then work
17 |16 |00:02:01 ~-~-> 00:02:04 |towards the sell side liquidity pool. Now because I'm dealing with a daily
18 |17 |00:02:04 ~-~-> 00:02:09 |chart, there's a whole lot of back and forth type price action. So it's not
19 |18 |00:02:09 ~-~-> 00:02:12 |unless it's in a very fast, low resistance liquidity run condition. The
20 |19 |00:02:12 ~-~-> 00:02:16 |market's going to spend a lot of time back and forth, as you see it doing
21 |20 |00:02:16 ~-~-> 00:02:21 |here. So as you can see, we got down to consequent encroachment of that gap and
22 |21 |00:02:21 ~-~-> 00:02:27 |then move back up into this fair value gap here that's delineated by these two
23 |22 |00:02:28 ~-~-> 00:02:34 |line segments, this little area right in here, that is an inversion fair value
24 |23 |00:02:34 ~-~-> 00:02:38 |gap, which we treated up into just today. So over here, when price was
25 |24 |00:02:38 ~-~-> 00:02:41 |moving higher, this was a buy seven balance, outside of efficiency. And
26 |25 |00:02:41 ~-~-> 00:02:45 |typically, when the market's bullish, if it's dropping down into that if we are,
27 |26 |00:02:45 ~-~-> 00:02:50 |in fact, bullish at that moment, price should show sensitivity and start the
28 |27 |00:02:50 ~-~-> 00:02:53 |same price higher. It doesn't do that. It goes right through it comes right
29 |28 |00:02:53 ~-~-> 00:02:58 |back up into it today. So I'll be watching what we do on Sundays opening
30 |29 |00:02:58 ~-~-> 00:03:03 |going into the first part of next week to see if this is still likely as a
31 |30 |00:03:03 ~-~-> 00:03:08 |scenario. I don't like the way it has all this up here between these two
32 |31 |00:03:08 ~-~-> 00:03:13 |highs. To me, it looks heavy, but worst case scenario, it doesn't drop and just
33 |32 |00:03:13 ~-~-> 00:03:16 |stays in consolidation, which you know it could do with all this stuff that's
34 |33 |00:03:16 ~-~-> 00:03:21 |going on with tariffs and whatnot. Find the chart on Dollar Index. You can see
35 |34 |00:03:21 ~-~-> 00:03:25 |we are using this inefficiency, which was obviously framed on the weekly
36 |35 |00:03:25 ~-~-> 00:03:32 |chart. Look at the videos from earlier in the week. That's this shaded orange
37 |36 |00:03:32 ~-~-> 00:03:35 |area down here when price dropped into it. That's this occurring right here,
38 |37 |00:03:37 ~-~-> 00:03:41 |right here on this, on this candlestick, it opened, traded down and sprung back
39 |38 |00:03:41 ~-~-> 00:03:47 |up into this portion of that inefficiency. So think about it as this
40 |39 |00:03:47 ~-~-> 00:03:54 |is the discount array, and this is the premium array trades down into it. Here
41 |40 |00:03:55 ~-~-> 00:04:00 |discount look at the bodies respecting it and its own individual fair value gap
42 |41 |00:04:01 ~-~-> 00:04:09 |and rallies. This positive balance. Sell side. Efficiency is a bullish fair value
43 |42 |00:04:09 ~-~-> 00:04:14 |gap, but the market trades down through it and then right back above it here,
44 |43 |00:04:14 ~-~-> 00:04:18 |then it becomes a reclaimed, bullish fair value gap. So again, I don't look
45 |44 |00:04:18 ~-~-> 00:04:22 |at an inefficiency that's filled or fills the number, if you will. In other
46 |45 |00:04:22 ~-~-> 00:04:25 |words, it closes it in once it does that, I don't forget about it. The
47 |46 |00:04:26 ~-~-> 00:04:29 |algorithm isn't going to forget about it. So me as a trader, I'm not going to
48 |47 |00:04:29 ~-~-> 00:04:36 |forget about it. So I want to be aware of what these levels are. So bullish
49 |48 |00:04:36 ~-~-> 00:04:40 |reclaims fair value gap and then partially trading down into it fails to
50 |49 |00:04:40 ~-~-> 00:04:43 |trade down to its consequent encroachment, which is the midpoint
51 |50 |00:04:43 ~-~-> 00:04:47 |right here in that line. So that's the institutional order, flow, entry, drill,
52 |51 |00:04:47 ~-~-> 00:04:58 |rallies up, then finally delivers into this premium array. This over here is an
53 |52 |00:04:58 ~-~-> 00:05:02 |inversion, fair backup as well. So. So in this case, it was sell side of
54 |53 |00:05:02 ~-~-> 00:05:06 |balance by side and efficiency. If the market was, in fact, bearish and didn't
55 |54 |00:05:06 ~-~-> 00:05:10 |have a whole lot of volatility like we've been seeing, it could have went up
56 |55 |00:05:10 ~-~-> 00:05:15 |into here and sent price lower, but it doesn't do it so that PD array fails and
57 |56 |00:05:15 ~-~-> 00:05:19 |trades above it. Now that we're on the other side of the curve here, we're
58 |57 |00:05:19 ~-~-> 00:05:23 |coming back up into it there. And when it comes an inversion fair value gap
59 |58 |00:05:23 ~-~-> 00:05:27 |here, because we're looking for it to run up into this inefficiency there, or
60 |59 |00:05:27 ~-~-> 00:05:32 |at the very minimum, the high of this self under balance by sign efficiency,
61 |60 |00:05:32 ~-~-> 00:05:37 |which is this line as the high, this line as the low. It's this candle is
62 |61 |00:05:37 ~-~-> 00:05:43 |high. This candle is low. That one single down closed candle portion.
63 |62 |00:05:43 ~-~-> 00:05:48 |That's the sell side of balance spots on efficiency. So inside the upper portion
64 |63 |00:05:48 ~-~-> 00:05:51 |of that, we have a premium rate in the form of a inversion fair value gap,
65 |64 |00:05:51 ~-~-> 00:05:56 |where this also is an inversion fair value gap. You can see how price runs
66 |65 |00:05:56 ~-~-> 00:06:03 |from the low of this here, right on that candlesticks low trade into here, and
67 |66 |00:06:03 ~-~-> 00:06:08 |then spring up through this inversion fair value gap. And then look at the
68 |67 |00:06:08 ~-~-> 00:06:13 |body stopping right there in consequent encroachment of this. See the blue
69 |68 |00:06:13 ~-~-> 00:06:18 |dashed line, or dotted line rather. That's the midpoint. That's what you're
70 |69 |00:06:18 ~-~-> 00:06:22 |seeing here. It trades up to here, stops, goes down, goes above. It uses it
71 |70 |00:06:22 ~-~-> 00:06:28 |as a discount array, after wicking into this buy side of balance, cell sign
72 |71 |00:06:28 ~-~-> 00:06:32 |efficiency, which is institutional order flow entry. Joe, now go back. Keep this
73 |72 |00:06:32 ~-~-> 00:06:37 |in mind. Okay, keep this in mind, and then look at what it was doing over here
74 |73 |00:06:37 ~-~-> 00:06:42 |too, for this reclaimed, bullish fair value gap. So there's a confluence of
75 |74 |00:06:42 ~-~-> 00:06:48 |three things here, institutional reform entry drill that's called encroachment,
76 |75 |00:06:48 ~-~-> 00:06:53 |failing to be traded to on a bullish fair value gap that's being reclaimed.
77 |76 |00:06:53 ~-~-> 00:06:58 |And then you're seeing that institutional refund entry drill, and
78 |77 |00:06:59 ~-~-> 00:07:04 |we're in the lower quadrant of this inversion, fair value gap on the daily
79 |78 |00:07:04 ~-~-> 00:07:08 |chart. And the bodies are supporting the idea that it's bullish. Why? Because
80 |79 |00:07:08 ~-~-> 00:07:12 |this candle, when it wicked down into it, look where it stopped, the midpoint
81 |80 |00:07:12 ~-~-> 00:07:15 |or consequence encroachment of this inversion fair value gap on the daily
82 |81 |00:07:15 ~-~-> 00:07:21 |chart. Then it price sent it up into the premium array seen inside the high end
83 |82 |00:07:21 ~-~-> 00:07:25 |of this cell phone, advanced bioscience efficiency in the form of an inversion
84 |83 |00:07:25 ~-~-> 00:07:29 |fair value gap. Now I know if you're brand new or relatively new to my
85 |84 |00:07:29 ~-~-> 00:07:34 |concepts, that was a whole lot of stuff in there, and I can understand it. If
86 |85 |00:07:34 ~-~-> 00:07:37 |you're thinking to yourself, there's no way I would have seen that. It's only
87 |86 |00:07:37 ~-~-> 00:07:40 |because you haven't spent enough time looking through it. Okay, I promise you
88 |87 |00:07:41 ~-~-> 00:07:45 |all of my students, every single one of them that have become proficient with
89 |88 |00:07:45 ~-~-> 00:07:49 |inversion, fair value gaps and fair value gaps. If they could go back to the
90 |89 |00:07:49 ~-~-> 00:07:51 |first time I talked about them, they were scratching their head too, like I
91 |90 |00:07:51 ~-~-> 00:07:54 |don't understand what you've talked about now. They're in there and just
92 |91 |00:07:54 ~-~-> 00:07:57 |picking them and trading them and doing all kinds of stuff with them. You got to
93 |92 |00:07:57 ~-~-> 00:08:00 |give yourself time, and you get that by practicing and journaling. All right,
94 |93 |00:08:03 ~-~-> 00:08:07 |we're going to segue right into the British pound versus the US dollar
95 |94 |00:08:08 ~-~-> 00:08:13 |currency pair and the lecture. So I'm going to cover a number of things
96 |95 |00:08:13 ~-~-> 00:08:17 |tonight, and I'm going to prove to you that I can teach it right to the point,
97 |96 |00:08:17 ~-~-> 00:08:19 |but you're not going to be satisfied, because you're going to feel like
98 |97 |00:08:19 ~-~-> 00:08:24 |there's something missing, but I promise you, there's nothing missing. So we have
99 |98 |00:08:24 ~-~-> 00:08:30 |the 15 minute time frame, pound dollar pair. And what I'm teaching here while
100 |99 |00:08:30 ~-~-> 00:08:36 |I'm teaching it over the the medium of a forex currency pair. This is the same
101 |100 |00:08:36 ~-~-> 00:08:39 |thing I do when I'm trading the NASDAQ. It's the same thing I do when I'm
102 |101 |00:08:39 ~-~-> 00:08:44 |trading commodities. It's the same thing I do when I trade. Es, same thing I did
103 |102 |00:08:44 ~-~-> 00:08:48 |when I was trading the bond market. Everything, everything that's traded
104 |103 |00:08:49 ~-~-> 00:08:55 |uses this logic. Okay, so 15 minute time frame, we have a sales on balance, buy
105 |104 |00:08:55 ~-~-> 00:08:59 |something efficiency. It's a city. It's a fair value gap, but it's classified as
106 |105 |00:08:59 ~-~-> 00:09:05 |a city because it's a down closed candle. This candle sticks low and this
107 |106 |00:09:05 ~-~-> 00:09:11 |candle sticks high. And the candle prior to that is this one singular long, down,
108 |107 |00:09:11 ~-~-> 00:09:17 |closed portion that is sell side imbalance. It's inefficient because it
109 |108 |00:09:17 ~-~-> 00:09:21 |doesn't have price being delivered in that same range defined by this
110 |109 |00:09:21 ~-~-> 00:09:25 |candlesticks low, and this candle sticks high. So we're going to look inside this
111 |110 |00:09:25 ~-~-> 00:09:30 |area right here. I'm going to give you the highest tier of understanding order
112 |111 |00:09:30 ~-~-> 00:09:35 |flow. And you don't need anything with these retail gimmicks like level two
113 |112 |00:09:35 ~-~-> 00:09:38 |data. It sounds technical. It sounds like the professionals. You know, it's
114 |113 |00:09:38 ~-~-> 00:09:43 |their tool. It's not okay, I promise you, it's it's spoofed many times. You
115 |114 |00:09:43 ~-~-> 00:09:48 |don't need footprint, okay? You don't need DOMs, ladders, depth of market. You
116 |115 |00:09:48 ~-~-> 00:09:53 |don't need any of those things. Okay? So we're going to dive into that now, left
117 |116 |00:09:53 ~-~-> 00:09:58 |hand side, five minute chart. Right hand side, one minute chart. So on the left
118 |117 |00:09:58 ~-~-> 00:10:02 |hand side you can see how. Now during the Non Farm Payroll, which you should
119 |118 |00:10:02 ~-~-> 00:10:05 |not have been trying to trade, by the way, because NFP is what it stands for.
120 |119 |00:10:06 ~-~-> 00:10:10 |It's Non Farm Payroll. It's the employment data. But around here we
121 |120 |00:10:10 ~-~-> 00:10:16 |refer to it as not for professionals. So the market opens up, does its circus
122 |121 |00:10:16 ~-~-> 00:10:20 |act, and runs right up into an inversion fair bag, up on the 15 minute time
123 |122 |00:10:20 ~-~-> 00:10:24 |frame. You know, this gap, because of what I was covering so far this week, it
124 |123 |00:10:24 ~-~-> 00:10:27 |just reversed its role because we were below it came up, hit it as an inversion
125 |124 |00:10:27 ~-~-> 00:10:31 |fair value gap, that's probably random, and then trades lower. And then one more
126 |125 |00:10:31 ~-~-> 00:10:37 |time, we drive right back up into the lower quadrant of this gap, which is the
127 |126 |00:10:37 ~-~-> 00:10:42 |wick. So counsel you to think about that right there, measuring that on your fib
128 |127 |00:10:44 ~-~-> 00:10:50 |don't trust my charts or my commentary alone. The market rolls over and creates
129 |128 |00:10:50 ~-~-> 00:10:54 |this inefficiency on the 15th time frame. But you notice that it doesn't
130 |129 |00:10:54 ~-~-> 00:10:58 |look the same as it did on the 15th time frame, because it looks like we opened
131 |130 |00:10:58 ~-~-> 00:11:02 |here, traded down, then opened here, went down a little bit, and opened here
132 |131 |00:11:02 ~-~-> 00:11:05 |and opened here and went down. So how's that an inefficiency here? Wouldn't it
133 |132 |00:11:05 ~-~-> 00:11:09 |just be this portion is the inefficiency? Well, on the five minute
134 |133 |00:11:09 ~-~-> 00:11:13 |chart, it is, but we're looking at it from a price delivery continuum. Okay,
135 |134 |00:11:13 ~-~-> 00:11:20 |so what I constantly do is I'm going through time frames every single time
136 |135 |00:11:20 ~-~-> 00:11:26 |that we close one full hour trading at the top of every 60 minutes. I'm
137 |136 |00:11:26 ~-~-> 00:11:30 |referring back to the hourly chart. I want to get a feel for where we're at.
138 |137 |00:11:30 ~-~-> 00:11:34 |Was there any inefficiencies? Is it respecting in any efficiencies? Is it
139 |138 |00:11:34 ~-~-> 00:11:38 |aiming for buy side or sell side? That is on that time frame? I'm not living on
140 |139 |00:11:38 ~-~-> 00:11:41 |the 60 minute chart. I'm just referring to it at the top of the hour, every
141 |140 |00:11:41 ~-~-> 00:11:48 |single time we get a new hour start, every 15 minute time frame, the same
142 |141 |00:11:48 ~-~-> 00:11:54 |thing every single time we close a 15 minute interval. I'm going back to the
143 |142 |00:11:54 ~-~-> 00:11:58 |15 minute time frame, and I'm cycling through that information that's on that
144 |143 |00:11:58 ~-~-> 00:12:03 |chart. And imagine what we just did showed the 15 minute time frame and then
145 |144 |00:12:03 ~-~-> 00:12:08 |dropping back from the 15 down to the five minute chart every five minutes.
146 |145 |00:12:08 ~-~-> 00:12:13 |I'm going back to the five minute chart. I'm only looking at it until we get a
147 |146 |00:12:13 ~-~-> 00:12:17 |new five minute close. So when a candlestick on the five minute time
148 |147 |00:12:18 ~-~-> 00:12:21 |frame closes and a new one begins, I'm going back to that five minute chart and
149 |148 |00:12:21 ~-~-> 00:12:26 |referring back to it. Now, when you see me doing my trade examples, many times,
150 |149 |00:12:26 ~-~-> 00:12:29 |it's just me showing you on a one minute chart, but I'm telling you what I'm
151 |150 |00:12:29 ~-~-> 00:12:35 |doing. I'm cycling through the time frames just like that. So that is my
152 |151 |00:12:35 ~-~-> 00:12:39 |price delivery continuum theory. That means I'm constantly cycling through all
153 |152 |00:12:39 ~-~-> 00:12:42 |those time frames. It's not top down analysis. It's cycling through
154 |153 |00:12:42 ~-~-> 00:12:47 |continuously looking for algorithmic PD arrays where price is going to respect,
155 |154 |00:12:47 ~-~-> 00:12:52 |respect to a degree and then maybe fail. And that gives me information. I'm
156 |155 |00:12:52 ~-~-> 00:12:57 |constantly feeding my attention with these things that are on these specific
157 |156 |00:12:57 ~-~-> 00:13:01 |time frames, and I'm not living on those time frames, because all I have to do is
158 |157 |00:13:01 ~-~-> 00:13:04 |refer to it real quick and see where I'm at and then go right back to that one
159 |158 |00:13:04 ~-~-> 00:13:09 |minute chart here. This little area here is that 15 minute time frame, fair value
160 |159 |00:13:09 ~-~-> 00:13:15 |gap or city. But it looks different because it takes up what it takes three
161 |160 |00:13:15 ~-~-> 00:13:19 |of these candlesticks to make that 115 minute candle. So let's get some detail
162 |161 |00:13:19 ~-~-> 00:13:24 |here. So we're gonna, again, use the high of that fair value gap. So I'm
163 |162 |00:13:24 ~-~-> 00:13:32 |darkening up here, and then this one here, that's your range, and side of
164 |163 |00:13:32 ~-~-> 00:13:38 |that range we're going to be studying with a lot more detail, with both of
165 |164 |00:13:38 ~-~-> 00:13:42 |these levels now understood that that's the 15 minute time frames high and low
166 |165 |00:13:42 ~-~-> 00:13:48 |of a severe value gap or city look over here on a one minute chart. So we
167 |166 |00:13:48 ~-~-> 00:13:51 |watched at the beginning of the discussion on POUND DOLLAR, I showed you
168 |167 |00:13:51 ~-~-> 00:13:56 |the 15 minute time frame and the very specific fair value gap, then on the
169 |168 |00:13:56 ~-~-> 00:14:02 |five minute chart, and then now that same gap being viewed on a one minute
170 |169 |00:14:02 ~-~-> 00:14:08 |chart. So right away you see this inefficiency. You see this inefficiency.
171 |170 |00:14:08 ~-~-> 00:14:11 |So what do you, what do you do? What do you do with that information? Michael,
172 |171 |00:14:11 ~-~-> 00:14:15 |how do you? How do you navigate that? Well, you certainly don't go to level
173 |172 |00:14:15 ~-~-> 00:14:18 |two, and you certainly don't need to pull up a footprint. You don't need to
174 |173 |00:14:18 ~-~-> 00:14:24 |do anything with DOMs, uh, V wop, all those things. I promise you, none of
175 |174 |00:14:24 ~-~-> 00:14:31 |that stuff is necessary. Everything you see here as it relates to time and the
176 |175 |00:14:31 ~-~-> 00:14:35 |open, high, low and close, that's all you need, folks, I promise you, if you
177 |176 |00:14:35 ~-~-> 00:14:38 |know where the mark is likely to go, that's the bias, the draw and liquidity.
178 |177 |00:14:38 ~-~-> 00:14:43 |If you know that open, high, low and close, and the time of the day or the
179 |178 |00:14:43 ~-~-> 00:14:46 |session is all that you need. I promise you. I'm going to prove it to you today.
180 |179 |00:14:49 ~-~-> 00:14:54 |So what we have here is this shaded area from this candlesticks low and this
181 |180 |00:14:54 ~-~-> 00:15:00 |candlesticks high, that is the basis of that 15 minute fair value gap. But. It's
182 |181 |00:15:00 ~-~-> 00:15:05 |being shown on a five minute chart here. So if we look at that same range on the
183 |182 |00:15:05 ~-~-> 00:15:09 |one minute chart, there's some characteristics in here that I want you
184 |183 |00:15:09 ~-~-> 00:15:13 |to notice. Now I've spoken on this before, but I kind of like want to bring
185 |184 |00:15:13 ~-~-> 00:15:17 |everything together and synergize everything, so that way you can see how
186 |185 |00:15:17 ~-~-> 00:15:21 |the algorithm fires off and refers back to these price points. When I first
187 |186 |00:15:21 ~-~-> 00:15:25 |started teaching, I would look at the charts and I'd say, All right, now my
188 |187 |00:15:25 ~-~-> 00:15:29 |students are going to want to be looking for something that reoccurs. So I
189 |188 |00:15:29 ~-~-> 00:15:34 |started by labeling things as points of interest, okay? And now everybody refers
190 |189 |00:15:34 ~-~-> 00:15:37 |to them in their own little mentorships as POIs, or, you know, something to that
191 |190 |00:15:37 ~-~-> 00:15:42 |effect. But it all comes from my mentorship level, lessons and stuff.
192 |191 |00:15:43 ~-~-> 00:15:47 |When we refer to a point of interest, the point of interest that's most
193 |192 |00:15:47 ~-~-> 00:15:51 |important when we're looking at a fair value gap is when we're looking at a
194 |193 |00:15:51 ~-~-> 00:15:56 |bearish fair value gap. We want to study the upper half of it first, because the
195 |194 |00:15:56 ~-~-> 00:15:59 |upper half of that fair value gap, when it's bearish is going to tell you a
196 |195 |00:15:59 ~-~-> 00:16:04 |great deal of information. And when you're looking at bullish fair value
197 |196 |00:16:04 ~-~-> 00:16:08 |gaps, you're going to be looking at the lowest portion, or the lower half of it.
198 |197 |00:16:09 ~-~-> 00:16:14 |What I mean by that? Well, if you look at the price action over here, price
199 |198 |00:16:14 ~-~-> 00:16:22 |drops down and comes right back up. Then it opens here, it trades down halfway
200 |199 |00:16:22 ~-~-> 00:16:27 |and comes back up. And then the next candle, it opens, trades down and
201 |200 |00:16:27 ~-~-> 00:16:36 |closes. And the next candle does what it does here, it takes three candles in
202 |201 |00:16:36 ~-~-> 00:16:41 |this time frame to make 115 minute candlestick. So when you're looking at
203 |202 |00:16:41 ~-~-> 00:16:45 |price, what you're focusing on is the upper half, when it's a bearish fair
204 |203 |00:16:45 ~-~-> 00:16:50 |value gap. So we're splitting it in half. This shaded area over here on the
205 |204 |00:16:50 ~-~-> 00:16:57 |five minute chart is this shaded area over here on the one minute chart, this
206 |205 |00:16:57 ~-~-> 00:17:03 |back and forth price action in the upper half of that is a balanced price range.
207 |206 |00:17:03 ~-~-> 00:17:07 |What makes it balanced? The fact that we're in the upper half of a bearish
208 |207 |00:17:07 ~-~-> 00:17:13 |fair value gap. So the upper half, if you see back and forth price delivery,
209 |208 |00:17:13 ~-~-> 00:17:18 |that is not inefficient. This drop down in here from the middle of the shaded
210 |209 |00:17:18 ~-~-> 00:17:25 |area up here, all this single candlestick right there that is not an
211 |210 |00:17:25 ~-~-> 00:17:30 |inefficient price delivery. It's extremely efficient. Why? Because the
212 |211 |00:17:30 ~-~-> 00:17:34 |first candle dropped down into here, and then we went back up over top of that
213 |212 |00:17:34 ~-~-> 00:17:40 |same range in here, went outside of that level that we're identifying as the high
214 |213 |00:17:40 ~-~-> 00:17:45 |of the 15 minute city, and then returns back inside the range and stops halfway
215 |214 |00:17:45 ~-~-> 00:17:49 |again, and then release once more, and the bodies are respecting the upper half
216 |215 |00:17:50 ~-~-> 00:17:56 |high of that city. Then it drops aggressively lower. Now, if you're not
217 |216 |00:17:56 ~-~-> 00:17:59 |looking at price the way I'm showing you here, which is why you got a lot of
218 |217 |00:17:59 ~-~-> 00:18:03 |these mentors out there that are trying to teach my stuff, SMC concepts, and
219 |218 |00:18:03 ~-~-> 00:18:08 |they don't ever mention me, because if they do, they have no they have no
220 |219 |00:18:08 ~-~-> 00:18:13 |presence anymore. They don't have any any voice, because they won't go to them
221 |220 |00:18:13 ~-~-> 00:18:16 |and pay them. They'll be just right here at the YouTube channel where it's
222 |221 |00:18:16 ~-~-> 00:18:21 |authors teaching it. They'll call this a fair value, gap, and now look for this
223 |222 |00:18:21 ~-~-> 00:18:27 |to try to close in and fill the numbers. And that won't happen here. It will not
224 |223 |00:18:27 ~-~-> 00:18:31 |happen. Why? Because it's efficiently delivered back and forth price action,
225 |224 |00:18:31 ~-~-> 00:18:36 |and then it trades down into the lower half and then validates it as a fair
226 |225 |00:18:36 ~-~-> 00:18:40 |value gap. So once the fair value gap is there on a 15 minute time frame, or any
227 |226 |00:18:40 ~-~-> 00:18:44 |time frame, you drop down the lower time frames, and you study what price
228 |227 |00:18:44 ~-~-> 00:18:48 |actually did in the upper half when it's a bearish fair value gap, or you study
229 |228 |00:18:48 ~-~-> 00:18:51 |the lower half when it's a bullish fair value gap. On a lower time frame chart,
230 |229 |00:18:52 ~-~-> 00:18:56 |when price goes back and forth in the upper half, it becomes balanced. There's
231 |230 |00:18:56 ~-~-> 00:19:00 |no need for price to come back up in this shaded area over here, when it
232 |231 |00:19:00 ~-~-> 00:19:07 |starts to return back inside of it, and watch, we're gonna take a huge leap when
233 |232 |00:19:07 ~-~-> 00:19:12 |do fair value gaps form inside the quarters. Now that's not quarters
234 |233 |00:19:12 ~-~-> 00:19:16 |theory. Okay, I already know some of you guys are running around right now. You
235 |234 |00:19:16 ~-~-> 00:19:19 |can't wait to go on the X and go on the Instagram and say, This is what
236 |235 |00:19:19 ~-~-> 00:19:23 |Michael's been using all of its quarters. Wrong, wrong. What I'm talking
237 |236 |00:19:23 ~-~-> 00:19:28 |about is time so if we were looking at the time of 10 o'clock in the morning,
238 |237 |00:19:28 ~-~-> 00:19:32 |Eastern Standard Time, from 10 o'clock at the top of the hour to 1015 there's
239 |238 |00:19:32 ~-~-> 00:19:38 |going to be a fair value gap that forms every time frame. But whatever time
240 |239 |00:19:38 ~-~-> 00:19:42 |frame you're trading on, you work with that information, and then that means
241 |240 |00:19:42 ~-~-> 00:19:48 |there's four potential fair value gaps that form per hour. Now the app pupil
242 |241 |00:19:48 ~-~-> 00:19:51 |will think about that for a moment and say, wow, there's potentially a scalp
243 |242 |00:19:51 ~-~-> 00:19:58 |every 15 minutes. Yes, that's high frequency trading algorithm. That's high
244 |243 |00:19:58 ~-~-> 00:20:03 |frequency trading algorithm. Quickly. It's also knowing that you don't have to
245 |244 |00:20:03 ~-~-> 00:20:06 |take the trade that you just missed and have any regret, because there's going
246 |245 |00:20:06 ~-~-> 00:20:10 |to be another one, just like a bus. Remember, I taught how that's a bus, the
247 |246 |00:20:10 ~-~-> 00:20:14 |bus route schedule, every 15 minutes there's something coming around the bend
248 |247 |00:20:15 ~-~-> 00:20:18 |again. Now for some of you that just simply want to trade on a daily chart or
249 |248 |00:20:18 ~-~-> 00:20:23 |higher time frames, it won't be that. It won't be like that for you, but for the
250 |249 |00:20:23 ~-~-> 00:20:25 |price action you know
251 |250 |00:20:27 ~-~-> 00:20:30 |means that I create. We're in these lower time frames, because there's a
252 |251 |00:20:30 ~-~-> 00:20:36 |plethora of opportunity, and these opportunities are extremely abundant. So
253 |252 |00:20:36 ~-~-> 00:20:43 |every quarter so 10 to 1015 there's a fair value gap forming. 1015, to 1030
254 |253 |00:20:44 ~-~-> 00:20:47 |there's a fair value gap forming. Between 1030, to 1045 there's a fair
255 |254 |00:20:47 ~-~-> 00:20:52 |value fair value gap forming. And 1045 to 11 o'clock, there's a fair value gap
256 |255 |00:20:52 ~-~-> 00:20:58 |forming on whatever time frame that you see that form, whether it be the 15
257 |256 |00:20:58 ~-~-> 00:21:03 |minute, the five minute, either one of those, you're going to see one of these
258 |257 |00:21:03 ~-~-> 00:21:07 |fair value gaps form every single 15 minute time frame. When you have the
259 |258 |00:21:07 ~-~-> 00:21:10 |draw on liquidity, it will be there. Now, if the market's going to be range
260 |259 |00:21:10 ~-~-> 00:21:14 |bound, it might not create that. Because why we're going to be in a high
261 |260 |00:21:14 ~-~-> 00:21:18 |resistance liquidity run conditions, that means there won't be fair value
262 |261 |00:21:18 ~-~-> 00:21:22 |gaps forming, which is the reason why I teach the number one premise is, are we
263 |262 |00:21:22 ~-~-> 00:21:26 |in low resistance or high resistance? Liquidity running conditions? If you're
264 |263 |00:21:26 ~-~-> 00:21:30 |seeing fair value gaps not materialized, then you're in high resistance. Sit and
265 |264 |00:21:30 ~-~-> 00:21:36 |wait. Wait for what? Wait till the next 15 minutes. And then, if it's the same
266 |265 |00:21:36 ~-~-> 00:21:40 |way there, wait 15 minutes longer. And you do that all the way until you get to
267 |266 |00:21:40 ~-~-> 00:21:43 |the end of the session, if the entire session was high resistance, you did
268 |267 |00:21:43 ~-~-> 00:21:50 |nothing and you took no trade come back the following afternoon or next trading
269 |268 |00:21:50 ~-~-> 00:21:56 |day. Now, what can you use this information when it's a balanced price
270 |269 |00:21:56 ~-~-> 00:22:02 |range? Well, it identifies what the lower half as, what an imbalanced price
271 |270 |00:22:02 ~-~-> 00:22:07 |range. Why is it imbalanced? Because it leaves the upper half here and it only
272 |271 |00:22:07 ~-~-> 00:22:13 |sells off. There's no up candle to the midpoint of it. But sell side imbalance,
273 |272 |00:22:13 ~-~-> 00:22:17 |buy side inefficiency, meaning that it needs to offer price back up to the
274 |273 |00:22:17 ~-~-> 00:22:21 |midpoint. That's what you'd be waiting for. That's what the algorithm is doing.
275 |274 |00:22:22 ~-~-> 00:22:26 |Buying pressure is not bringing up and stopping it dead against tracks halfway.
276 |275 |00:22:26 ~-~-> 00:22:31 |That's algorithmic price delivery. It's going to offer that price over a
277 |276 |00:22:31 ~-~-> 00:22:35 |continuous delivery. Higher, higher, higher, higher. No matter how many
278 |277 |00:22:35 ~-~-> 00:22:39 |people come in wanting the short, no matter how many people are reluctant to
279 |278 |00:22:39 ~-~-> 00:22:44 |buy, it does not matter. Okay, so when you're looking at depth of market, level
280 |279 |00:22:44 ~-~-> 00:22:50 |two, footprint, all these things, the market doesn't care. It doesn't care
281 |280 |00:22:50 ~-~-> 00:22:55 |about the number of contracts. It does not care. It doesn't care. Now the
282 |281 |00:22:55 ~-~-> 00:23:02 |number of contracts is the life's blood of what you can get filled on trades,
283 |282 |00:23:03 ~-~-> 00:23:07 |but the delivery mechanism has absolutely no care, no concern, for the
284 |283 |00:23:07 ~-~-> 00:23:11 |actual number of trades being booked, which is why I'm trying to tell you, and
285 |284 |00:23:11 ~-~-> 00:23:16 |I've been telling you since I started teaching it, that this algorithm that
286 |285 |00:23:16 ~-~-> 00:23:20 |exists is a price engine. It will deliver right to these specific PD
287 |286 |00:23:20 ~-~-> 00:23:24 |arrays and their consequent encroachment. There's no way, there's
288 |287 |00:23:24 ~-~-> 00:23:27 |absolutely no way, that buying and selling pressure would deliver that. It
289 |288 |00:23:27 ~-~-> 00:23:30 |would be random distribution. There would be all kinds of different highs
290 |289 |00:23:30 ~-~-> 00:23:34 |and lows for me, but they're stopping dead in its tracks, where I tell you it
291 |290 |00:23:34 ~-~-> 00:23:40 |stops. That is authorship. That's something that you can't go around. You
292 |291 |00:23:40 ~-~-> 00:23:44 |can't hide from that. You can't chase it down and say, I'm going to beat it into
293 |292 |00:23:44 ~-~-> 00:23:47 |submission and say it's something else. It's not anything but algorithmic price
294 |293 |00:23:47 ~-~-> 00:23:52 |delivery. That means the price engine will offer that midpoint consequence
295 |294 |00:23:52 ~-~-> 00:23:56 |encroachment, because that's exactly what it's scripted and designed to do.
296 |295 |00:23:57 ~-~-> 00:24:03 |So the market trades up in there and then efficiently delivers buy side. So
297 |296 |00:24:03 ~-~-> 00:24:07 |now there is no inefficiency for for buy side delivery. So we had sell side
298 |297 |00:24:08 ~-~-> 00:24:13 |imbalance, buy side inefficiency, the portion that's inefficient on buy side
299 |298 |00:24:13 ~-~-> 00:24:17 |is the lower half. Why? Because we only had a single pass with this candles,
300 |299 |00:24:18 ~-~-> 00:24:22 |halfway point right here, where the shades of the boxes change color from
301 |300 |00:24:22 ~-~-> 00:24:26 |that point down to the low of that shaded area. Or specifically, this
302 |301 |00:24:26 ~-~-> 00:24:32 |candle sticks high. It's only offered sell side delivery. That means movement
303 |302 |00:24:32 ~-~-> 00:24:37 |lower. So because the market is algorithmic, because it's controlled,
304 |303 |00:24:38 ~-~-> 00:24:41 |because it's rigged, and you should be thankful that it is because if it wasn't
305 |304 |00:24:41 ~-~-> 00:24:44 |rigged, I would not be able to do these things. I would not be able to tell you
306 |305 |00:24:44 ~-~-> 00:24:47 |it's going to stop here, turn around, go with this candle, stop here, go higher,
307 |306 |00:24:47 ~-~-> 00:24:50 |and I certainly wouldn't be able to execute on it, right? But you keep
308 |307 |00:24:50 ~-~-> 00:24:55 |seeing it now, my students are learning how to do it too well. Delivering price
309 |308 |00:24:55 ~-~-> 00:25:01 |up to the halfway point here satisfies the coding in that. Algorithm. It need
310 |309 |00:25:01 ~-~-> 00:25:07 |not go any higher. So now we're going to take a huge leap in understanding. Okay,
311 |310 |00:25:08 ~-~-> 00:25:13 |this is the inefficiency that really matters in that 15 minute time frame,
312 |311 |00:25:13 ~-~-> 00:25:22 |fair Vega. It's also this portion here on a five minute fair value gap. But you
313 |312 |00:25:22 ~-~-> 00:25:25 |won't be confused by looking at the 15 minute time frame fair value gap and
314 |313 |00:25:25 ~-~-> 00:25:31 |think it has to close in the upper half of it, because it doesn't that becomes a
315 |314 |00:25:31 ~-~-> 00:25:35 |balanced price range. So using the price delivery continuum theory, which is
316 |315 |00:25:35 ~-~-> 00:25:40 |working from higher Time Frame, lower, lower, higher Time Frame, lower, lower,
317 |316 |00:25:40 ~-~-> 00:25:44 |you're constantly cycling through every time a new 15 minute candlestick forms
318 |317 |00:25:44 ~-~-> 00:25:49 |or begins. You refer back to that 15 minute candlestick chart and see where
319 |318 |00:25:49 ~-~-> 00:25:53 |you're at. What inefficiencies are there? Did it form one? Did it close in
320 |319 |00:25:53 ~-~-> 00:25:57 |or deliver the numbers? Okay? If it didn't fill the numbers on the
321 |320 |00:25:57 ~-~-> 00:26:01 |inefficiency, in other words, close in and overlap the inefficiency of a fair
322 |321 |00:26:01 ~-~-> 00:26:06 |value gap, then you're constantly waiting for that information to be
323 |322 |00:26:06 ~-~-> 00:26:10 |delivered in price action. But if price is showing things like we're showing
324 |323 |00:26:10 ~-~-> 00:26:14 |here, where it's working the upper half and it's a bearish fair value gap, you
325 |324 |00:26:14 ~-~-> 00:26:20 |can anticipate that that five minute portion here is the real fair value gap,
326 |325 |00:26:21 ~-~-> 00:26:26 |because we've done the work of looking at actual price delivery. We don't need
327 |326 |00:26:26 ~-~-> 00:26:29 |to look at orders. We don't need to know how many contracts were were traded.
328 |327 |00:26:29 ~-~-> 00:26:34 |Because it doesn't matter. The algorithm doesn't see your stop. It doesn't see
329 |328 |00:26:34 ~-~-> 00:26:39 |how many contracts were traded at a particular range of price action. It
330 |329 |00:26:39 ~-~-> 00:26:44 |doesn't refer to that folks, it can't that's too much of an effort to code
331 |330 |00:26:44 ~-~-> 00:26:49 |that the only thing it refers back to is number one time, and then it works on
332 |331 |00:26:49 ~-~-> 00:26:53 |the open, high, low and close. It doesn't use hike and ashy. It doesn't
333 |332 |00:26:53 ~-~-> 00:26:58 |use Ichimoku candlesticks. It doesn't use, you know, whatever else, candy bar
334 |333 |00:26:59 ~-~-> 00:27:03 |nickname they want to give their stuff. It only usually open high, low and close
335 |334 |00:27:03 ~-~-> 00:27:13 |on a time based delivery. Okay, so let's take a huge leap forward from this. This
336 |335 |00:27:13 ~-~-> 00:27:19 |portion, it's not gonna it's not gonna close in. It's not gonna overlap that
337 |336 |00:27:19 ~-~-> 00:27:24 |portion. It's not going to fill the numbers on the upper half of that
338 |337 |00:27:24 ~-~-> 00:27:29 |bearish fair value gap. Now, if it's not going to do that, folks on a 15 minute
339 |338 |00:27:29 ~-~-> 00:27:35 |time frame, what does it make it what can you do with that information? Number
340 |339 |00:27:35 ~-~-> 00:27:40 |one, it helps you with stop placement. Your stop can be in the upper quadrant
341 |340 |00:27:40 ~-~-> 00:27:45 |of that known area right there, because that's not likely to fill. More
342 |341 |00:27:45 ~-~-> 00:27:50 |conservative approach would be put your stop loss just above that shaded area
343 |342 |00:27:50 ~-~-> 00:27:57 |here, for quadrant is fine, consequent encroachment. I wouldn't do that. It's a
344 |343 |00:27:57 ~-~-> 00:28:01 |little too close, and the spread might get you because we allow the wicks to do
345 |344 |00:28:01 ~-~-> 00:28:06 |damage. But if we were to get stopped out using this information, as long as
346 |345 |00:28:06 ~-~-> 00:28:10 |we traded back up into the lower half of this portion, should not offer the
347 |346 |00:28:10 ~-~-> 00:28:13 |filling of the numbers. I mean, the upper half of that 15 minute time frame
348 |347 |00:28:13 ~-~-> 00:28:17 |fair value got, I would re enter the short and place the stop loss again into
349 |348 |00:28:17 ~-~-> 00:28:21 |the upper quadrant of it, or just above the high with half the number of
350 |349 |00:28:21 ~-~-> 00:28:27 |contracts that I just took. Okay? So now we've covered stop loss placement. We
351 |350 |00:28:27 ~-~-> 00:28:32 |understand how to properly handle inefficiencies when they're bullish or
352 |351 |00:28:32 ~-~-> 00:28:39 |bearish. I told you when they form, every single 15 minute time, every
353 |352 |00:28:39 ~-~-> 00:28:44 |interval of 15 minutes, there's one forming from the 15 minute into the five
354 |353 |00:28:44 ~-~-> 00:28:47 |minute, back and forth. You're going to cycle through there every 15 minutes.
355 |354 |00:28:48 ~-~-> 00:28:51 |Here's the thing that you need to have your notes now, if you're noticing that
356 |355 |00:28:51 ~-~-> 00:28:55 |it's not happening, if it's not forming one in the 15 minute chart or the five
357 |356 |00:28:55 ~-~-> 00:28:59 |minute chart, then you're in high resistance liquidity run conditions, and
358 |357 |00:28:59 ~-~-> 00:29:04 |you need to sit still, wait for that 15 to five minutes to shift into where
359 |358 |00:29:04 ~-~-> 00:29:07 |they're offering fair value gaps. It need not trade into the fair value gap
360 |359 |00:29:07 ~-~-> 00:29:12 |in that 15 minute interval time. It just means that you have to see them forming,
361 |360 |00:29:12 ~-~-> 00:29:16 |because that's the algorithm posting little areas where it's going to refer
362 |361 |00:29:16 ~-~-> 00:29:22 |back to later on. It's like you see a bus stop that you need to get a bus ride
363 |362 |00:29:22 ~-~-> 00:29:26 |at, and you're walking to the bus stop, but you know you're not going to make it
364 |363 |00:29:26 ~-~-> 00:29:30 |in time. Okay. Well, you're you're heading that direction to the bus stop
365 |364 |00:29:30 ~-~-> 00:29:33 |because, you know, in 15 minutes, it's likely to have another bus come there,
366 |365 |00:29:33 ~-~-> 00:29:39 |and you can get a ride on that. You see how that absolutely removes the FOMO,
367 |366 |00:29:40 ~-~-> 00:29:43 |like there's no reason for you to fear missing a move. There's no reason for
368 |367 |00:29:43 ~-~-> 00:29:47 |you to be obsessively worrying about are you going to find a trade setup today? I
369 |368 |00:29:47 ~-~-> 00:29:52 |know I'm going to find one every day, but I demand that it's in a low
370 |369 |00:29:52 ~-~-> 00:29:56 |resistance, liquid run condition for me to trade every single session. Every
371 |370 |00:29:56 ~-~-> 00:30:02 |single day. I can trade every single 60 minute. Candlestick, okay? Because I
372 |371 |00:30:02 ~-~-> 00:30:06 |have four opportunities to do something, aim for a fair value gap or use the fair
373 |372 |00:30:06 ~-~-> 00:30:12 |value gap that's formed in one of those 15 minute time frames. In terms of time,
374 |373 |00:30:12 ~-~-> 00:30:17 |I have an opportunity forming. I have an opportunity presented to me now. It may
375 |374 |00:30:17 ~-~-> 00:30:20 |not engage the fair value gap that it formed in the previous 15 minute time
376 |375 |00:30:20 ~-~-> 00:30:25 |frame. That's fine. I'm waiting for one where everything lines up. Now, what
377 |376 |00:30:25 ~-~-> 00:30:25 |does that mean?
378 |377 |00:30:27 ~-~-> 00:30:34 |Well, if we look for setups that are drawing towards a buy side liquidity,
379 |378 |00:30:34 ~-~-> 00:30:38 |then I'm going to be looking for fair value gaps that are bullish, or I want
380 |379 |00:30:38 ~-~-> 00:30:43 |to see bearish fair value gaps fail and then become inversion fair value gaps.
381 |380 |00:30:43 ~-~-> 00:30:47 |See the logic there. It's not complicated. It's absolutely not
382 |381 |00:30:47 ~-~-> 00:30:51 |complicated. But I understand if you're new, if you haven't really spent that
383 |382 |00:30:51 ~-~-> 00:30:54 |much time with my concepts, this still sounds like a foreign language to you,
384 |383 |00:30:54 ~-~-> 00:30:57 |and I understand. But the people that have been studying for a while with me,
385 |384 |00:30:57 ~-~-> 00:31:00 |their gears are turning right now. They're literally chomping at the bit.
386 |385 |00:31:00 ~-~-> 00:31:04 |They can't wait until Monday now. So and that's good, that's what I want. I want
387 |386 |00:31:04 ~-~-> 00:31:07 |you to be excited about learning. I want you to be engaged. Okay, if you're not
388 |387 |00:31:07 ~-~-> 00:31:10 |engaged, you won't be happy about what you're you're studying, and you won't be
389 |388 |00:31:10 ~-~-> 00:31:14 |inspired to continue doing it, because it's going to be hard work, despite what
390 |389 |00:31:14 ~-~-> 00:31:17 |I'm making it sound like here. But if we know that this is not going to fill the
391 |390 |00:31:17 ~-~-> 00:31:21 |numbers, that means closing the gap portion on here, on the one minute
392 |391 |00:31:21 ~-~-> 00:31:29 |chart. What does that make it it makes it a breakaway gap it's not likely to
393 |392 |00:31:29 ~-~-> 00:31:33 |fill. So when you watch me in my executions, and I'm recording
394 |393 |00:31:33 ~-~-> 00:31:39 |annotations and such, I'm explaining to you with real time observation that I
395 |394 |00:31:39 ~-~-> 00:31:43 |believe that that portion should stay open, and if it does, it's a breakaway
396 |395 |00:31:43 ~-~-> 00:31:47 |gap, meaning that we're going to, unlikely see a lot of movement lower and
397 |396 |00:31:48 ~-~-> 00:31:54 |look what it did here. And when do you have all these things come together as a
398 |397 |00:31:54 ~-~-> 00:31:59 |perfect Blue Ribbon recipe for a trade setup or idea that isn't so high order,
399 |398 |00:32:00 ~-~-> 00:32:06 |odds in your favor. What do we what do we utilize there to kind of facilitate
400 |399 |00:32:06 ~-~-> 00:32:19 |that? My macro, time, 10:50am, to 1110, macro, hello, Southbound Train, baby.
401 |400 |00:32:21 ~-~-> 00:32:26 |Let close candles consecutively are a bearish order block. That's not a supply
402 |401 |00:32:26 ~-~-> 00:32:31 |zone, okay? It's the change in the state of delivery, which is the lowest opening
403 |402 |00:32:31 ~-~-> 00:32:40 |price of these consecutive candlesticks. It's inside of this portion of what the
404 |403 |00:32:40 ~-~-> 00:32:46 |lower half of that 15 minute time frame. Fair value gap. That's the only portion
405 |404 |00:32:46 ~-~-> 00:32:51 |it needs to trade to. So now look at all the confluences. This portion is
406 |405 |00:32:51 ~-~-> 00:32:58 |balanced. This portion is imbalanced. It's inefficient with buy side. This buy
407 |406 |00:32:58 ~-~-> 00:33:04 |side offered here is perfect delivery, and you have the change in the state of
408 |407 |00:33:04 ~-~-> 00:33:09 |delivery here at the time that the algorithm will fire off and start
409 |408 |00:33:09 ~-~-> 00:33:13 |offering lower prices regardless of how many people want to buy it. It does not
410 |409 |00:33:13 ~-~-> 00:33:18 |matter how many people are short selling it, either. That's why you have markets
411 |410 |00:33:18 ~-~-> 00:33:24 |that have very low volume. But you see huge candlesticks, and they'll say, Oh,
412 |411 |00:33:24 ~-~-> 00:33:28 |the market's just running out of buyers. That's not what it is. The algorithm is
413 |412 |00:33:28 ~-~-> 00:33:35 |offering prices lower, skipping big time, just running down there. And all
414 |413 |00:33:35 ~-~-> 00:33:39 |they need is one contract to print to make that candlestick look however they
415 |414 |00:33:39 ~-~-> 00:33:43 |want it to. And there's always something someone coming in with a market order to
416 |415 |00:33:43 ~-~-> 00:33:49 |buy or sell. There's liquidity resting in the marketplace. So as soon as the
417 |416 |00:33:49 ~-~-> 00:33:53 |algorithm keeps offering lower prices, and they do it real sudden and quick,
418 |417 |00:33:55 ~-~-> 00:34:01 |everything proves, in hindsight, that these moves are quick and sudden, but
419 |418 |00:34:01 ~-~-> 00:34:06 |they don't usually get seen in advance, because you're looking at things that
420 |419 |00:34:06 ~-~-> 00:34:11 |are going to mask it footprint, looking at how many contracts were traded here
421 |420 |00:34:11 ~-~-> 00:34:16 |on the on the previous volume, and we're looking at volume profile, or I'm
422 |421 |00:34:16 ~-~-> 00:34:21 |looking at a point of control, or I'm looking At a V wop, or I'm looking at
423 |422 |00:34:21 ~-~-> 00:34:26 |whatever. All those things are distracting you. They're not going to
424 |423 |00:34:26 ~-~-> 00:34:31 |tell you the time when the setup is going to form. I am. They're not going
425 |424 |00:34:31 ~-~-> 00:34:36 |to tell you when these PD arrays are going to form. I am. You're not going to
426 |425 |00:34:36 ~-~-> 00:34:42 |see which one of those levels on price ladders, DOMs, which one of all those
427 |426 |00:34:42 ~-~-> 00:34:46 |things above the marketplace or below the marketplace is it going to stop and
428 |427 |00:34:46 ~-~-> 00:34:50 |turn around on you don't know that, and no one using that information does.
429 |428 |00:34:50 ~-~-> 00:34:57 |They're just guessing. I promise you, that is all nonsense. Look at what this
430 |429 |00:34:57 ~-~-> 00:35:01 |is showing you here, folks. See here. Seriously, it's ridiculous when you
431 |430 |00:35:01 ~-~-> 00:35:07 |compare it with everything else. What you think and believe about me aside.
432 |431 |00:35:07 ~-~-> 00:35:13 |Okay, listen to me. What I just gave you in this lecture tonight is the golden
433 |432 |00:35:13 ~-~-> 00:35:19 |ticket. You never need to buy another mentorship, you never need to look at a
434 |433 |00:35:19 ~-~-> 00:35:23 |signal service. You never need to look at a live streamer and try to copy them.
435 |434 |00:35:24 ~-~-> 00:35:29 |Never. You never need to do that now, because what I've given you here is the
436 |435 |00:35:29 ~-~-> 00:35:32 |actual thing I'm cycling through while I'm watching price action, and I'm
437 |436 |00:35:32 ~-~-> 00:35:35 |waiting for these setups, and I'm waiting for them to form, and I know
438 |437 |00:35:35 ~-~-> 00:35:40 |what I'm looking for. See it provides you context. It's not just some
439 |438 |00:35:40 ~-~-> 00:35:46 |subjective you know, trading on a gut feeling. I'm not trusting any
440 |439 |00:35:46 ~-~-> 00:35:52 |indicators, because time is on my side. I know when the setups are going to
441 |440 |00:35:52 ~-~-> 00:35:55 |form. I know when fair value gaps are going to form. Now you know when they're
442 |441 |00:35:55 ~-~-> 00:36:01 |going to form. Every 15 minutes on the 15 or five minute chart. It's forming.
443 |442 |00:36:01 ~-~-> 00:36:07 |If it doesn't, you're in high resistance liquidity. That means sit still. And
444 |443 |00:36:07 ~-~-> 00:36:12 |then you look at time when the macros are forming and fair value gaps are
445 |444 |00:36:12 ~-~-> 00:36:15 |forming, and it's trading into those at the beginning, or going into the
446 |445 |00:36:15 ~-~-> 00:36:20 |beginning of the macro time you know what's coming. The price is going to
447 |446 |00:36:20 ~-~-> 00:36:25 |start spooling. And if you have a degree of understanding of where it's likely to
448 |447 |00:36:25 ~-~-> 00:36:30 |go, Well, look at the previous lecture I gave this week using the POUND DOLLAR
449 |448 |00:36:32 ~-~-> 00:36:42 |this level here, we want to look at it again. Okay, there's your target from up
450 |449 |00:36:42 ~-~-> 00:36:47 |here, down here, peer meeting opportunity here with the institutional
451 |450 |00:36:47 ~-~-> 00:36:51 |order flow entry drill. It doesn't need to fill this. Doesn't need to do
452 |451 |00:36:51 ~-~-> 00:36:57 |anything with this price action. Why? Because you have a breakaway gap that
453 |452 |00:36:57 ~-~-> 00:37:02 |was up here, and this is going to be a measuring gap, so half halfway from it
454 |453 |00:37:02 ~-~-> 00:37:05 |starts dropping is about halfway, and you know that you have another measured
455 |454 |00:37:05 ~-~-> 00:37:11 |move to that level here. It's not complex. It's not difficult. It's
456 |455 |00:37:11 ~-~-> 00:37:14 |difficult and complex for the people that are brand new, or if you didn't
457 |456 |00:37:14 ~-~-> 00:37:21 |really study and back test and log and observe, spending time studying past
458 |457 |00:37:21 ~-~-> 00:37:26 |price moves, journaling news and then watching the tape, real time, all these
459 |458 |00:37:26 ~-~-> 00:37:31 |things that you're trying to worry about adding to your chart, these new
460 |459 |00:37:31 ~-~-> 00:37:36 |gimmicks, I promise you, none of that stuff's going to serve you like you
461 |460 |00:37:36 ~-~-> 00:37:42 |think it will, time and price that will serve you perfectly, and you'll never
462 |461 |00:37:42 ~-~-> 00:37:46 |get the results that I'm showing you here with anything else. You'll never
463 |462 |00:37:46 ~-~-> 00:37:50 |get this precise with anything else, because there's so many different rules
464 |463 |00:37:50 ~-~-> 00:37:55 |of you know, this is that, and that's this. And come on, come on, man, any
465 |464 |00:37:55 ~-~-> 00:38:01 |happening you're still guessing, you're still just using those things as a
466 |465 |00:38:01 ~-~-> 00:38:05 |catalyst to get into a trade, because you don't have a decision mechanism.
467 |466 |00:38:06 ~-~-> 00:38:12 |Time is my decision mechanism. Trade condition, market tone is my decision
468 |467 |00:38:13 ~-~-> 00:38:17 |I'm blending several things. And I know when I'm not wanting to trade. I know
469 |468 |00:38:17 ~-~-> 00:38:21 |when I shouldn't trade, and I counsel you as students to try not to do
470 |469 |00:38:21 ~-~-> 00:38:26 |anything in those critical times like Non Farm Payroll, it makes it harder,
471 |470 |00:38:27 ~-~-> 00:38:28 |but it's not impossible. All
472 |471 |00:38:36 ~-~-> 00:38:43 |right, folks, there you have it. Another chapter in the market wizardry of
473 |472 |00:38:43 ~-~-> 00:38:47 |Michael J Huddleston, hope you found it insightful. Hope you learned something
474 |473 |00:38:47 ~-~-> 00:38:51 |from it, and hope it inspires you to go into your charts next week with a new
475 |474 |00:38:52 ~-~-> 00:38:57 |sense of urgency on how to capture this information. Journal it, log it back.
476 |475 |00:38:57 ~-~-> 00:39:01 |Test it, study it. Do that for a couple weeks up, you know, maybe a couple
477 |476 |00:39:01 ~-~-> 00:39:05 |months. And then once you have a real good collection of what you've seen it
478 |477 |00:39:05 ~-~-> 00:39:11 |in the past, do start doing it real time. Tape reading, no demo account, no
479 |478 |00:39:11 ~-~-> 00:39:14 |funded account challenges, no fund account trading, no live account
480 |479 |00:39:14 ~-~-> 00:39:19 |trading. Tape, read it, watch it live. And I promise you, you're the corners of
481 |480 |00:39:19 ~-~-> 00:39:24 |your mouth is going to ache because you can't stop smiling. Enjoy your weekend,
482 |481 |00:39:24 ~-~-> 00:39:27 |so I'll talk to you next week. Lord willing. Be safe. You.