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2 |1 |00:00:28 ~-~-> 00:00:32 |ICT: Folks, welcome back. All right, so we're looking at the review from
3 |2 |00:00:32 ~-~-> 00:00:36 |Monday's trading. I was supposed to have this up yesterday, but I just didn't
4 |3 |00:00:36 ~-~-> 00:00:43 |feel like doing it. So same things back, hurting, complaining, I know, but
5 |4 |00:00:43 ~-~-> 00:00:49 |everybody's asking what's going on. Why am I not all that active and just
6 |5 |00:00:49 ~-~-> 00:00:53 |reminding those that don't know? Alright? So take a quick look at the
7 |6 |00:00:53 ~-~-> 00:00:57 |daily chart. This is what we were looking for on Saturday or Sunday. I
8 |7 |00:00:57 ~-~-> 00:01:01 |think it was before the market opened up. I shared my analysis, and I said
9 |8 |00:01:01 ~-~-> 00:01:08 |that we would likely open below this low, gapping down and trading down into
10 |9 |00:01:08 ~-~-> 00:01:16 |this inefficiency here, that's a real liquidity void, and that low here had
11 |10 |00:01:16 ~-~-> 00:01:24 |sell side. And we're going to see how we opened on Monday, we opened below that
12 |11 |00:01:24 ~-~-> 00:01:32 |low at 17,001 13.25 traded lower, made a lower low going into the seven o'clock
13 |12 |00:01:32 ~-~-> 00:01:39 |hour, eastern time in Asia, Sunday night, going into Monday. Here is s, p,
14 |13 |00:01:39 ~-~-> 00:01:46 |same thing. Lower gap opening and again, we're going to look at these two lows
15 |14 |00:01:46 ~-~-> 00:01:53 |here. First, we're going to grade the opening range of this gap here. So this
16 |15 |00:01:53 ~-~-> 00:02:00 |is new week opening gap, where we opened that range we graded half of its
17 |16 |00:02:00 ~-~-> 00:02:04 |consequent encroachment. So new week opening gap high. New week opening gap
18 |17 |00:02:04 ~-~-> 00:02:12 |low. This is for Monday's trading, which, yes, it is hindsight. Okay, so
19 |18 |00:02:12 ~-~-> 00:02:17 |just let you know I shared what I did yesterday. You can see that on on my
20 |19 |00:02:17 ~-~-> 00:02:25 |socials. Look at the lows here on NASDAQ on the left hand side, we have this low
21 |20 |00:02:26 ~-~-> 00:02:33 |and a lower low, while on the S, P, E, S made a higher low. So that kind of told
22 |21 |00:02:33 ~-~-> 00:02:39 |me that we probably did enough for at least the beginning of the week, gapping
23 |22 |00:02:39 ~-~-> 00:02:42 |down like this. I'm not going to go so far as to say that's the capitulation
24 |23 |00:02:42 ~-~-> 00:02:47 |that I think is needed for the low to be in. It's just too many things going on.
25 |24 |00:02:48 ~-~-> 00:02:53 |Tariffs are being pulled back. You know, higher tariffs are being threatened.
26 |25 |00:02:53 ~-~-> 00:02:59 |It's just, it's, it's a mess, so it's going to cause a very erratic price
27 |26 |00:02:59 ~-~-> 00:03:03 |action. So your leverage needs to be dialed way back. We're basically going
28 |27 |00:03:03 ~-~-> 00:03:10 |to get your clock cleaned, meaning smashed. All right? Here is that
29 |28 |00:03:11 ~-~-> 00:03:15 |liquidity, void dimensional daily chart for nq, and look how close got to it.
30 |29 |00:03:15 ~-~-> 00:03:23 |Just above it. That's good enough for covert work, right? Again, divergence
31 |30 |00:03:23 ~-~-> 00:03:35 |between the lows, all right. And then here is NASDAQ over here and this low in
32 |31 |00:03:35 ~-~-> 00:03:40 |the London session. Right below that low here is sell side and same low
33 |32 |00:03:41 ~-~-> 00:03:49 |respectively to that of the ES, and the market traded down, and we're going to
34 |33 |00:03:49 ~-~-> 00:03:54 |look at this little area in here. But for now, just note that I did not get
35 |34 |00:03:54 ~-~-> 00:03:59 |this entire run up. I didn't want to hold on. I wanted something very easy,
36 |35 |00:03:59 ~-~-> 00:04:06 |low hanging for a target, relative equal highs, relative equal highs, and the
37 |36 |00:04:06 ~-~-> 00:04:15 |relative equal highs here and this high here would have been just as good as
38 |37 |00:04:15 ~-~-> 00:04:21 |any, as its upside target not getting any of this. We're going to zoom in on
39 |38 |00:04:21 ~-~-> 00:04:26 |es first, and I'll cover this. So here's the london session levels, the head sell
40 |39 |00:04:26 ~-~-> 00:04:30 |side below it, and here's the buy side liquidity, and another form of buy side
41 |40 |00:04:30 ~-~-> 00:04:38 |liquidity right there. Okay, so 830 time, that's when the auto will start
42 |41 |00:04:38 ~-~-> 00:04:43 |spooling, even when there is no news, and we have that here treats to get the
43 |42 |00:04:43 ~-~-> 00:04:50 |cell side down here. Now I want you to take a look at this, and I highlight the
44 |43 |00:04:50 ~-~-> 00:04:55 |exit. Okay, so that's why you see it in the highlight down here. I'm hovering
45 |44 |00:04:55 ~-~-> 00:05:02 |over top of this arrow, so that way the little X. It arrow appears on the chart.
46 |45 |00:05:03 ~-~-> 00:05:09 |So I got out at that buy side here, and I did not get any of that extra run. And
47 |46 |00:05:09 ~-~-> 00:05:15 |it's okay. Admittedly, yesterday, I kind of regretted having shown what I did,
48 |47 |00:05:15 ~-~-> 00:05:20 |because it really doesn't support the idea what I opened the week with was
49 |48 |00:05:21 ~-~-> 00:05:26 |just be careful and don't you don't try to do anything yourself. But you know, I
50 |49 |00:05:26 ~-~-> 00:05:30 |can't, I can't take it back once I release it and put it in social media. I
51 |50 |00:05:30 ~-~-> 00:05:33 |don't ever delete anything. But I want to zoom in here and walk you through
52 |51 |00:05:33 ~-~-> 00:05:40 |that little area here, so you can see this candlestick here, the down candle
53 |52 |00:05:40 ~-~-> 00:05:46 |and then the next candle here, that is the very first presented fair value gap
54 |53 |00:05:46 ~-~-> 00:05:56 |of 930 to 10 opening range on Monday. So this and we took out the sell side at
55 |54 |00:05:56 ~-~-> 00:06:03 |the London lows when price was in this area here, I felt that it was warranted
56 |55 |00:06:03 ~-~-> 00:06:09 |to make a run for the buy side. Here, again, I'm hovering over that candle
57 |56 |00:06:10 ~-~-> 00:06:14 |exit arrow, so that way you can see that's where I exited that and the price
58 |57 |00:06:14 ~-~-> 00:06:23 |matches that there and that market replay, besides, I showed the actual
59 |58 |00:06:23 ~-~-> 00:06:28 |closing of the position, so I'm not sure what else I could do. We're going to
60 |59 |00:06:28 ~-~-> 00:06:36 |zoom in on the NASDAQ now, the sell side, taken here, the buy side,
61 |60 |00:06:36 ~-~-> 00:06:42 |liquidity, and I'm hovering over that arrow to show you, I got out above those
62 |61 |00:06:42 ~-~-> 00:06:47 |relatively wise and now I did not capture any of this move here, and I'm
63 |62 |00:06:47 ~-~-> 00:06:50 |okay with that, but let's zoom in here. So I want to teach you something in
64 |63 |00:06:50 ~-~-> 00:06:56 |regards to the first visits of everybody got. So this is the structure here. We
65 |64 |00:06:56 ~-~-> 00:07:04 |have original consolidation by side. The market's tanking. It went lower early on
66 |65 |00:07:04 ~-~-> 00:07:08 |in the session on Sunday, we had SMT divergence that never got canceled out.
67 |66 |00:07:09 ~-~-> 00:07:14 |So it set the stage for the lows that were formed in Asia on Sunday night.
68 |67 |00:07:15 ~-~-> 00:07:22 |Those are the weekly lows, and we can start looking for sell side to be taken
69 |68 |00:07:23 ~-~-> 00:07:27 |and then reject that and start to look for buy side, not because we're trying
70 |69 |00:07:27 ~-~-> 00:07:31 |to pick a low, not because I think a low is in. It's just they, they put an
71 |70 |00:07:31 ~-~-> 00:07:35 |extreme gap, which is what I outlined on Sunday, before the market even opened
72 |71 |00:07:35 ~-~-> 00:07:43 |up. So having that expectation of, I'm saying Sunday, aren't I? It was
73 |72 |00:07:43 ~-~-> 00:07:50 |Saturday. I put the video up, then I did a Sunday shotgun x space. So that's
74 |73 |00:07:50 ~-~-> 00:07:58 |what's confusing. I'm a little tired, but the analysis I gave on Saturday and
75 |74 |00:07:58 ~-~-> 00:08:04 |on YouTube, and then I gave a two and a half hour cheerleading session on X in
76 |75 |00:08:04 ~-~-> 00:08:13 |the form of a space, but we had such a large gap lower all expected on Saturday
77 |76 |00:08:13 ~-~-> 00:08:20 |and handed to you before it happened, the market tanked. It took out the
78 |77 |00:08:20 ~-~-> 00:08:26 |London lows during the opening range. So here's opening range, 930 and it trades
79 |78 |00:08:26 ~-~-> 00:08:32 |down into 945-940-6947 and this was the first percent of everybody got. Now I
80 |79 |00:08:32 ~-~-> 00:08:41 |know some of you think that it's this one. Now, why is this not a valid first
81 |80 |00:08:41 ~-~-> 00:08:46 |percent of everybody got you ready. This is your opportunity to pause the video
82 |81 |00:08:46 ~-~-> 00:08:50 |and think about the differences between what I just showed as mine and that one.
83 |82 |00:08:50 ~-~-> 00:08:56 |If you don't pause the video, you're going to jump to me explaining it, and
84 |83 |00:08:56 ~-~-> 00:09:03 |won't give you an opportunity to think about it. I'm all right, so here's what
85 |84 |00:09:03 ~-~-> 00:09:08 |some of you think was the very first presented fair value gap. But why is it
86 |85 |00:09:08 ~-~-> 00:09:12 |not a valid first presented fair value gap? Because you need to look at where
87 |86 |00:09:12 ~-~-> 00:09:20 |it is in proximity to the candles that formed just before it. Watch. See the
88 |87 |00:09:20 ~-~-> 00:09:26 |body on this one, and the body here, and then this one. The only thing it did was
89 |88 |00:09:26 ~-~-> 00:09:34 |trade down a wick through the discount wick of this candlestick. The consequent
90 |89 |00:09:34 ~-~-> 00:09:41 |encroachment this whole area here is a balanced price range. So if there's a
91 |90 |00:09:41 ~-~-> 00:09:46 |gap that would be formed inside here that's not essentially breaking away
92 |91 |00:09:46 ~-~-> 00:09:51 |from anything, is it? Because it's still inside of this balanced price range, so
93 |92 |00:09:52 ~-~-> 00:09:59 |the only portion that would be considered a gap would be what the body.
94 |93 |00:10:02 ~-~-> 00:10:08 |Price or this body to this candlestick. There's no there's no gap there. There's
95 |94 |00:10:08 ~-~-> 00:10:13 |no imbalance here. All this is reflecting is it's leaving this balanced
96 |95 |00:10:13 ~-~-> 00:10:18 |price range with all of this back and forth. And think about this way, this
97 |96 |00:10:18 ~-~-> 00:10:23 |candle opened up here, traded all the way down to that low and closed there.
98 |97 |00:10:23 ~-~-> 00:10:27 |The next candle opens exactly where the previous candle closed. Then it trades
99 |98 |00:10:27 ~-~-> 00:10:32 |up, and then the next candle we open here, do a little bit of moving up, and
100 |99 |00:10:32 ~-~-> 00:10:39 |then trade down to that low, and we stop here. We've had range delivered here in
101 |100 |00:10:39 ~-~-> 00:10:43 |the majority of what this would be viewed as a fair value gap with these
102 |101 |00:10:43 ~-~-> 00:10:49 |candlesticks, and this one went lower. So it's not accurate to call this an
103 |102 |00:10:49 ~-~-> 00:10:53 |inefficiency. It's not. It's part of this larger range that's been treated
104 |103 |00:10:53 ~-~-> 00:10:58 |back and forth. And then when we get this candlestick here, this is actually
105 |104 |00:10:58 ~-~-> 00:11:06 |a gap from this low to that low. So look at the real inefficiency here and there
106 |105 |00:11:06 ~-~-> 00:11:10 |it is, there. Now I'm entering right the consequent encroachment of that there.
107 |106 |00:11:10 ~-~-> 00:11:13 |So there's the difference. Hope you found insightful until I'll talk to you
108 |107 |00:11:13 ~-~-> 00:11:14 |next time. Be safe.