Wiki source code of ICT YT - 2025-09-19 - Trading Premarket and Regular Session Liquidity
Last modified by Drunk Monkey on 2025-09-27 14:16
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2 | |1 |00:00:00 ~-~-> 00:00:08 |ICT: Welcome back, folks. Today is September 18, 2025 and today's session | ||
3 | |2 |00:00:08 ~-~-> 00:00:12 |is going to be about treating pre market and regular session liquidity. All | ||
4 | |3 |00:00:17 ~-~-> 00:00:20 |right, so we're looking at the NASDAQ here. On the left hand side is a daily | ||
5 | |4 |00:00:20 ~-~-> 00:00:25 |chart. As you can see, everything I've been teaching so far this week has been | ||
6 | |5 |00:00:25 ~-~-> 00:00:32 |panning out to script, and the right hand side chart is a one minute chart | ||
7 | |6 |00:00:32 ~-~-> 00:00:39 |intraday for today's price action. So I want to take your attention to this | ||
8 | |7 |00:00:39 ~-~-> 00:00:44 |candlestick. Here is the premium wick. Now I mentioned in the first session | ||
9 | |8 |00:00:45 ~-~-> 00:00:49 |Tuesday, because Monday was a patience lesson. I didn't post anything that | ||
10 | |9 |00:00:49 ~-~-> 00:00:56 |night, but Tuesday, I posted about how the rules for when you're trading all | ||
11 | |10 |00:00:56 ~-~-> 00:01:01 |time highs, or near all time highs, you need to be grading all of the premium | ||
12 | |11 |00:01:01 ~-~-> 00:01:10 |and discount wicks here. That's two days ago. So when I said in notes to cut | ||
13 | |12 |00:01:10 ~-~-> 00:01:13 |through candles this go over top this candle like it's not even there and go | ||
14 | |13 |00:01:13 ~-~-> 00:01:16 |right to it. It doesn't matter if there's five days, it doesn't matter if | ||
15 | |14 |00:01:16 ~-~-> 00:01:23 |there's four days, if it's one day. You look back during the series of the run | ||
16 | |15 |00:01:23 ~-~-> 00:01:28 |in the all time highs, or near all time highs, in close proximity to where | ||
17 | |16 |00:01:28 ~-~-> 00:01:32 |you're trading at. Now if there's any premium wick or discount wick, you need | ||
18 | |17 |00:01:32 ~-~-> 00:01:38 |to grade it, and we run the fib on it. So it gives us the 25 the 50 and the 75 | ||
19 | |18 |00:01:38 ~-~-> 00:01:43 |level. It's not really that important to have the high and the low you can have | ||
20 | |19 |00:01:43 ~-~-> 00:01:46 |that. I just do it this way because it keeps the chart clean. It helps me also, | ||
21 | |20 |00:01:46 ~-~-> 00:01:49 |when I'm trying to illustrate the things to you, because there's less things to | ||
22 | |21 |00:01:49 ~-~-> 00:01:54 |look at, one of the hardest things for me to do is to manage the information | ||
23 | |22 |00:01:54 ~-~-> 00:01:58 |I'm trying to share, because there's a lot of it coming at you. And I know many | ||
24 | |23 |00:01:58 ~-~-> 00:02:01 |times you're wondering, why did I pick this level? Why did I pick that level? | ||
25 | |24 |00:02:01 ~-~-> 00:02:08 |And when I keep as little as I possibly can while exercising my experience by | ||
26 | |25 |00:02:08 ~-~-> 00:02:14 |teaching it, it helps me focus on the things that I know are salient, but also | ||
27 | |26 |00:02:14 ~-~-> 00:02:18 |keeps a lot of the things that you may would otherwise be asking about. Why | ||
28 | |27 |00:02:18 ~-~-> 00:02:22 |didn't use this candle? Why didn't you talk about this? Because these are the | ||
29 | |28 |00:02:22 ~-~-> 00:02:27 |things that I used. Okay? So I understand by repetition and experience. | ||
30 | |29 |00:02:27 ~-~-> 00:02:31 |You'll get that same experience by spending time with me doing this. But if | ||
31 | |30 |00:02:31 ~-~-> 00:02:35 |you're just watching this, and you're not annotating the charts or the PDFs | ||
32 | |31 |00:02:35 ~-~-> 00:02:39 |I'm sharing, if you're not printing them out or like typing over them or writing | ||
33 | |32 |00:02:39 ~-~-> 00:02:45 |by hand, observations, things that you are seeing, repeat things that are | ||
34 | |33 |00:02:45 ~-~-> 00:02:49 |noteworthy for you in your present development, then you're wasting your | ||
35 | |34 |00:02:49 ~-~-> 00:02:52 |time if you're not doing it, because just simply watching me being a | ||
36 | |35 |00:02:52 ~-~-> 00:02:59 |spectator of what I'm showing and then using as you saw today, I shared the | ||
37 | |36 |00:02:59 ~-~-> 00:03:05 |recording of me doing this short this morning. It was an enigma trade. And I | ||
38 | |37 |00:03:05 ~-~-> 00:03:09 |just tossed that out there because I have had a lot of people email me asking | ||
39 | |38 |00:03:09 ~-~-> 00:03:12 |me, does this person know your Enigma algorithm? Does this person know? Does | ||
40 | |39 |00:03:13 ~-~-> 00:03:19 |this know? They don't know? Okay, and the proof was, it again today that I was | ||
41 | |40 |00:03:19 ~-~-> 00:03:24 |selling at the high, which you'll see right in here, and then writing it down | ||
42 | |41 |00:03:24 ~-~-> 00:03:31 |into a liquidity pool I shared beforehand on X so you want to grade | ||
43 | |42 |00:03:31 ~-~-> 00:03:38 |those premium wicks, and I didn't have this graded because it would, it would | ||
44 | |43 |00:03:38 ~-~-> 00:03:42 |basically undermine everything That was anticipating, which has been expansion | ||
45 | |44 |00:03:42 ~-~-> 00:03:46 |to the upside, looking for higher highs, as we were noting on Tuesday night in | ||
46 | |45 |00:03:46 ~-~-> 00:03:54 |the first lecture this week. So this dashed line here is this dashed line | ||
47 | |46 |00:03:54 ~-~-> 00:03:59 |here on the one minute chart. Okay, just check it over here, 24,006 47 and a | ||
48 | |47 |00:03:59 ~-~-> 00:04:05 |quarter. 24,006 47 and a quarter. And then in the upper quadrant of this wick, | ||
49 | |48 |00:04:05 ~-~-> 00:04:11 |okay, the only thing we've done here is lay the fib on this candlesticks body to | ||
50 | |49 |00:04:11 ~-~-> 00:04:19 |the high noting the 7550 and 25% levels. The upper quadrant level of this wick | ||
51 | |50 |00:04:19 ~-~-> 00:04:26 |comes in at 24,006 19 even. That's this level right here, and that's going to be | ||
52 | |51 |00:04:26 ~-~-> 00:04:30 |pertinent in a few minutes, but for right now, that's all you need to know. | ||
53 | |52 |00:04:30 ~-~-> 00:04:36 |And these levels are no longer important for the rest of this production, but I'm | ||
54 | |53 |00:04:36 ~-~-> 00:04:39 |keeping it here so that way you can track where everything is when it's | ||
55 | |54 |00:04:39 ~-~-> 00:04:43 |salient. I'll just highlight this one purple, and I'll remove these to draw | ||
56 | |55 |00:04:43 ~-~-> 00:04:50 |your attention to what it is I want to show you right? So we have pre market | ||
57 | |56 |00:04:50 ~-~-> 00:04:55 |start. Okay, so this is pre market session start, or open at 7am that's | ||
58 | |57 |00:04:55 ~-~-> 00:04:59 |what the equities market is. And you can see how we had this really obvious. | ||
59 | |58 |00:05:00 ~-~-> 00:05:05 |Smooth edge, buy side liquidity pool left there, and I mentioned on a very | ||
60 | |59 |00:05:05 ~-~-> 00:05:08 |short little vignette, and I'm not going to include it here, because it's for | ||
61 | |60 |00:05:08 ~-~-> 00:05:14 |people that watch and follow me on X, how I found this run here up into that | ||
62 | |61 |00:05:14 ~-~-> 00:05:19 |liquidity pool. So everything above these relative equal highs, all of this | ||
63 | |62 |00:05:19 ~-~-> 00:05:23 |in here was retail getting trapped offside, and then they were going to | ||
64 | |63 |00:05:23 ~-~-> 00:05:27 |drop it. I know you're going to ask me, how did I know that? Because it's | ||
65 | |64 |00:05:27 ~-~-> 00:05:35 |Thursday. Thursday is the day right before Friday, obviously, and the week | ||
66 | |65 |00:05:35 ~-~-> 00:05:39 |ends, and we can't trade anymore after five o'clock on Friday. So when we have | ||
67 | |66 |00:05:39 ~-~-> 00:05:44 |a really bullish week, as we've seen so far this week, it tends to create these, | ||
68 | |67 |00:05:44 ~-~-> 00:05:49 |either the high of the week forms on Thursday, or it'll create these fake | ||
69 | |68 |00:05:49 ~-~-> 00:05:53 |highs of the week, and then it'll come back raging and blow out the high like | ||
70 | |69 |00:05:53 ~-~-> 00:05:57 |it did today. So I like to look for scenarios like this, where they prime | ||
71 | |70 |00:05:57 ~-~-> 00:06:03 |the market so retail sees as resistance. They drop it down so they think it's | ||
72 | |71 |00:06:03 ~-~-> 00:06:06 |going to go lower. Then they run up here and gather all the buy stops that they | ||
73 | |72 |00:06:06 ~-~-> 00:06:11 |left here, trying to short it prematurely. So all of these little runs | ||
74 | |73 |00:06:11 ~-~-> 00:06:19 |in here is just them accumulating short positions to trade down to the lower | ||
75 | |74 |00:06:19 ~-~-> 00:06:25 |quadrant of that premium wick, find that at like, off, okay, it's not there. So | ||
76 | |75 |00:06:26 ~-~-> 00:06:32 |when price ran above this high here, I was really interested in seeing that as | ||
77 | |76 |00:06:32 ~-~-> 00:06:38 |a short why? Because we were going into the 830 news injection, where we have | ||
78 | |77 |00:06:38 ~-~-> 00:06:45 |volatility, flood the market, and it's all during a time when I anticipate this | ||
79 | |78 |00:06:45 ~-~-> 00:06:51 |being manipulation and accumulating short positions by smart money, which | ||
80 | |79 |00:06:51 ~-~-> 00:06:57 |will be distributed lower off setting here, at minor sell side, at pre market | ||
81 | |80 |00:06:57 ~-~-> 00:07:03 |session, sell side, and having an expectation of lower prices on a day | ||
82 | |81 |00:07:03 ~-~-> 00:07:07 |when you're primarily bullish, you have to know exactly where you want to get | ||
83 | |82 |00:07:07 ~-~-> 00:07:12 |out at, otherwise you'll marry the idea and stay too long. So I elected to use | ||
84 | |83 |00:07:12 ~-~-> 00:07:16 |this while I was making breakfast this morning, I was recording the trade and | ||
85 | |84 |00:07:16 ~-~-> 00:07:22 |entering and managing it and giving commentary over the phone. Okay, so you | ||
86 | |85 |00:07:22 ~-~-> 00:07:27 |saw that. It's been shared on x and it's also uploaded to YouTube. I will include | ||
87 | |86 |00:07:27 ~-~-> 00:07:34 |the link to watch that video in the comment section of this very video here. | ||
88 | |87 |00:07:36 ~-~-> 00:07:41 |So continuing on here, we're going to move a little bit forward in time. So | ||
89 | |88 |00:07:41 ~-~-> 00:07:47 |this is the pre market session start or 7am the consolidation around the buy | ||
90 | |89 |00:07:47 ~-~-> 00:07:52 |side, where it accumulates it and then right before the 830 news, they rally it | ||
91 | |90 |00:07:52 ~-~-> 00:07:55 |up, taking out this short term high and this high here. I want to be selling | ||
92 | |91 |00:07:55 ~-~-> 00:08:00 |short right there. Even if it stops me by running higher, it doesn't matter to | ||
93 | |92 |00:08:00 ~-~-> 00:08:04 |me, it's just one of those things where you're wrong. But everything here was | ||
94 | |93 |00:08:04 ~-~-> 00:08:09 |suggesting, because it's Thursday, they primed the market, you know, early on in | ||
95 | |94 |00:08:09 ~-~-> 00:08:15 |London, and then seven o'clock, they ran it up, did not break it down here, kept | ||
96 | |95 |00:08:15 ~-~-> 00:08:21 |holding it 830 as we approach that, that's going to be the next wave of | ||
97 | |96 |00:08:23 ~-~-> 00:08:28 |basically a price run. So we have one starting at seven o'clock. It ran into | ||
98 | |97 |00:08:28 ~-~-> 00:08:33 |the liquidity I outlined that on little video on x, and then at 830 we're going | ||
99 | |98 |00:08:33 ~-~-> 00:08:38 |to see a more significant intermediate term price run intraday. Then we have | ||
100 | |99 |00:08:38 ~-~-> 00:08:42 |that here. Market breaks down, it consolidates and spends a little time in | ||
101 | |100 |00:08:42 ~-~-> 00:08:46 |here. It finally gives up the ghost and trades lower, hits the first minor sell | ||
102 | |101 |00:08:46 ~-~-> 00:08:50 |side liquidity pool, and then trades down to the pre market session sell side | ||
103 | |102 |00:08:50 ~-~-> 00:08:55 |liquidity pool, which I was looking for. There's a smaller, little, tiny, little | ||
104 | |103 |00:08:55 ~-~-> 00:08:58 |sell side liquidity pool, but it's not worth mentioning here because it's so | ||
105 | |104 |00:08:58 ~-~-> 00:09:02 |close to where this is. So this is the only one that's really noteworthy for | ||
106 | |105 |00:09:02 ~-~-> 00:09:06 |your annotations in that buy side liquidity pool I just highlighted over | ||
107 | |106 |00:09:06 ~-~-> 00:09:13 |here so that we can reference what this was all about. So time and then price | ||
108 | |107 |00:09:13 ~-~-> 00:09:18 |and then liquidity. Where's it going to draw to here, and then draw down to | ||
109 | |108 |00:09:18 ~-~-> 00:09:24 |here. And moving forward, you can see this was a reclaimed, bearish fair value | ||
110 | |109 |00:09:24 ~-~-> 00:09:27 |gap. As I mentioned during the recording, I hide on it and show you, | ||
111 | |110 |00:09:27 ~-~-> 00:09:33 |that's why it was pausing in here. So this is time distortion inside of this | ||
112 | |111 |00:09:35 ~-~-> 00:09:39 |fair value gap that we went above once we got back down below it. Now this is a | ||
113 | |112 |00:09:39 ~-~-> 00:09:43 |reclaim. It's not an inversion fair value gap. It's resuming its original | ||
114 | |113 |00:09:43 ~-~-> 00:09:47 |characteristic at the formation of it, which is a Sibi, which is bearish, if | ||
115 | |114 |00:09:47 ~-~-> 00:09:51 |you trade back up to it, while we're trading up to it here, it's | ||
116 | |115 |00:09:51 ~-~-> 00:09:55 |consolidating. And there's a smaller, little one inside this little area, | ||
117 | |116 |00:09:55 ~-~-> 00:10:01 |right in here, this pre market session, buy side liquidity pool. Was created in | ||
118 | |117 |00:10:01 ~-~-> 00:10:05 |all of this consolidation. And that's right there. It's where I was going | ||
119 | |118 |00:10:05 ~-~-> 00:10:11 |short. You can see it in the recording. Market breaks lower. There's a small | ||
120 | |119 |00:10:11 ~-~-> 00:10:16 |little fair value gap in here, right at that low, really nice little drive up | ||
121 | |120 |00:10:16 ~-~-> 00:10:17 |into that. | ||
122 | |121 |00:10:19 ~-~-> 00:10:24 |And then this is also an inversion fair value gap, which later on, after the | ||
123 | |122 |00:10:25 ~-~-> 00:10:30 |regular trading session begins at 930 it trades up into that, showing you where I | ||
124 | |123 |00:10:30 ~-~-> 00:10:37 |entered short. I added all in here inside that reclaimed parish fair value | ||
125 | |124 |00:10:37 ~-~-> 00:10:42 |gap. And then it broke lower, and then the limit order, which is what you watch | ||
126 | |125 |00:10:42 ~-~-> 00:10:46 |in the recording gets filled here. Now, why didn't I hold for this objective or | ||
127 | |126 |00:10:46 ~-~-> 00:10:50 |this objective, if I'm going to sit here and talk to you like I'm sounding so | ||
128 | |127 |00:10:50 ~-~-> 00:10:56 |smart, right? Well, it's going against the underlying macro direction on the | ||
129 | |128 |00:10:56 ~-~-> 00:11:02 |daily chart. So I know I'm going against the grain. So I want to be nimble and | ||
130 | |129 |00:11:02 ~-~-> 00:11:08 |pick a low hanging fruit objective to get out at. That means the pre market | ||
131 | |130 |00:11:08 ~-~-> 00:11:11 |session, sell side, liquidity pool, the low here. That's the easiest thing to | ||
132 | |131 |00:11:11 ~-~-> 00:11:17 |reach for, and it's a no brainer. It really offers a good reward. The risk | ||
133 | |132 |00:11:17 ~-~-> 00:11:23 |was minor compared to the reward here, and it's high probability. It's not high | ||
134 | |133 |00:11:23 ~-~-> 00:11:27 |probability to see it drop like this and expect it to trade down to the previous | ||
135 | |134 |00:11:27 ~-~-> 00:11:34 |days. Well, not the previous days, but Monday's high, which is right here, or | ||
136 | |135 |00:11:35 ~-~-> 00:11:40 |reaching down into the upper quadrant level of this wick, which would be this | ||
137 | |136 |00:11:40 ~-~-> 00:11:46 |level here. So notice, while I got out here, it dropped down further, but then | ||
138 | |137 |00:11:46 ~-~-> 00:11:51 |failed to get to that level there, which is this candlesticks high, or that | ||
139 | |138 |00:11:51 ~-~-> 00:11:56 |premium wick. So by it not getting there and then retracing all the way back up | ||
140 | |139 |00:11:56 ~-~-> 00:12:02 |and all this messy price delivery, I say that with tongue in cheek, but it | ||
141 | |140 |00:12:02 ~-~-> 00:12:05 |reaches up into inversion, fair Bay gap, and then comes back down and takes out | ||
142 | |141 |00:12:05 ~-~-> 00:12:11 |these relative equal lows, digs into that upper quadrant level right here | ||
143 | |142 |00:12:12 ~-~-> 00:12:17 |during the regular trading session. So here's that regular trading session | ||
144 | |143 |00:12:17 ~-~-> 00:12:20 |start time. We have a minor sell side liquidity pool here, relative equal | ||
145 | |144 |00:12:20 ~-~-> 00:12:26 |lows. And then we have this minor Buy, Sell liquidity pool, which watch what | ||
146 | |145 |00:12:26 ~-~-> 00:12:30 |it's doing here. While it's consolidating at 930 it drops down | ||
147 | |146 |00:12:30 ~-~-> 00:12:35 |first, that's a fake out. Then it drives up into the inversion fair value gap, | ||
148 | |147 |00:12:36 ~-~-> 00:12:41 |trapping what breakout artists that want to be buyers. Then they rake them across | ||
149 | |148 |00:12:41 ~-~-> 00:12:46 |the coals to take out the sell side here and dig into this candlesticks high that | ||
150 | |149 |00:12:46 ~-~-> 00:12:51 |daily, high the dashed line, and then into the upper quadrant level of this | ||
151 | |150 |00:12:51 ~-~-> 00:12:57 |premium wick, which is this 24,006, 19. Once it trades there, then there's a | ||
152 | |151 |00:12:57 ~-~-> 00:13:00 |rejection away from that. Then we have a nice little sugar rush where it runs | ||
153 | |152 |00:13:00 ~-~-> 00:13:04 |right back over top of everything that was given and attacks the remaining | ||
154 | |153 |00:13:04 ~-~-> 00:13:08 |stops here. Why? Because the market is primarily bullish. I mentioned this on | ||
155 | |154 |00:13:08 ~-~-> 00:13:13 |Tuesday. Avoid when we're in all time highs. Avoid trying to pick the top this | ||
156 | |155 |00:13:13 ~-~-> 00:13:17 |is classic, classic bait and switch. This is exactly what they do all the | ||
157 | |156 |00:13:17 ~-~-> 00:13:22 |time. And they come back down and touch that old daily high that's this high | ||
158 | |157 |00:13:22 ~-~-> 00:13:30 |here, retraces lower, then rallies and straight drive all the way up to clear | ||
159 | |158 |00:13:30 ~-~-> 00:13:37 |this liquidity over here, notice these quadrant levels in here, it trades up | ||
160 | |159 |00:13:37 ~-~-> 00:13:44 |into the lower quadrant of this bison balance house on efficiency, which is | ||
161 | |160 |00:13:44 ~-~-> 00:13:50 |the inversion for Vega. So it hits that here as the opening range high it drops | ||
162 | |161 |00:13:50 ~-~-> 00:13:55 |down, hits the objective of the upper quadrant of the premium wick on the | ||
163 | |162 |00:13:55 ~-~-> 00:14:03 |daily chart. There and then find support and discount sensitivity at this. | ||
164 | |163 |00:14:03 ~-~-> 00:14:12 |Candlesticks high, the wick high, and it starts to rally. This is the first | ||
165 | |164 |00:14:12 ~-~-> 00:14:18 |resent, the fair value gap I'm showing with the volume imbalance here. And | ||
166 | |165 |00:14:18 ~-~-> 00:14:24 |there's a small little volume of balance in there. Project it up forward. We | ||
167 | |166 |00:14:24 ~-~-> 00:14:29 |trade through it, come back down, use it as a discount array and then sends it | ||
168 | |167 |00:14:29 ~-~-> 00:14:37 |higher. Now I've taken away the other quadrants on that premium wick, as I | ||
169 | |168 |00:14:37 ~-~-> 00:14:42 |mentioned earlier that I would and changed it to like a purple color, and | ||
170 | |169 |00:14:42 ~-~-> 00:14:46 |that's it right here. So you can see clearly it drops down into that inside | ||
171 | |170 |00:14:46 ~-~-> 00:14:50 |this range of the daily candlestick. You can't see what's going on, but all of | ||
172 | |171 |00:14:50 ~-~-> 00:14:57 |this is the architecture of that daily range being fulfilled. And it rallies up | ||
173 | |172 |00:14:57 ~-~-> 00:15:01 |and clears the buy side. And again. Everything back as it is, because I want | ||
174 | |173 |00:15:01 ~-~-> 00:15:07 |to keep it on the chart and the news driven by side liquidity pool, which is | ||
175 | |174 |00:15:07 ~-~-> 00:15:16 |here, gets taken out coming forward. Fair value gap. Here is an inversion | ||
176 | |175 |00:15:16 ~-~-> 00:15:19 |fair value gap. I'm going to go back up one so you can see what that is. Take a | ||
177 | |176 |00:15:19 ~-~-> 00:15:28 |look at the price. Okay, around 24, or 740, that's this one here that reclaimed | ||
178 | |177 |00:15:28 ~-~-> 00:15:32 |bearish, fair value gap. I'm extending that forward. Okay, that's exactly | ||
179 | |178 |00:15:32 ~-~-> 00:15:36 |what's going to happen here, and that's this one right here. So what I'm showing | ||
180 | |179 |00:15:36 ~-~-> 00:15:43 |you now inside of this box I'm delineating at 10am when the market's | ||
181 | |180 |00:15:43 ~-~-> 00:15:48 |bullish, the lunch macro will look for sell side liquidity when it's bullish. | ||
182 | |181 |00:15:48 ~-~-> 00:15:51 |And the way you do it is you find 10 o'clock in the morning, and you walk | ||
183 | |182 |00:15:51 ~-~-> 00:15:56 |forward until you see a prominent swing low, or the obvious one since 10am | ||
184 | |183 |00:15:57 ~-~-> 00:16:02 |that's this one right here you see that. So lunch macro will seek sell side | ||
185 | |184 |00:16:03 ~-~-> 00:16:07 |formed after 10am so it's the first prominent sell side liquidity pool after | ||
186 | |185 |00:16:07 ~-~-> 00:16:13 |10am that's what it'll reach for. That's this one right here. So we have a drive | ||
187 | |186 |00:16:13 ~-~-> 00:16:18 |higher off of that inversion fair value gap that takes out the buy side here. | ||
188 | |187 |00:16:18 ~-~-> 00:16:22 |Now the lunch macro, because we're approaching what time 1130 it'll start | ||
189 | |188 |00:16:22 ~-~-> 00:16:26 |running for the lunch macro. The algorithm will pull back into the range | ||
190 | |189 |00:16:26 ~-~-> 00:16:33 |and seek that liquidity right there. So it's lunch macro, sell side liquidity | ||
191 | |190 |00:16:34 ~-~-> 00:16:41 |and the buy side. Here it runs that first I have a fair value gap here, it's | ||
192 | |191 |00:16:41 ~-~-> 00:16:44 |bearish trades up into here, hits the consequent encroachment of that gap | ||
193 | |192 |00:16:44 ~-~-> 00:16:50 |perfectly, then breaks lower. There's a small little inefficiency you'll see | ||
194 | |193 |00:16:50 ~-~-> 00:16:58 |when we zoom in here. This is a volume imbalance with this candlestick. Volume | ||
195 | |194 |00:16:58 ~-~-> 00:17:01 |imbalance there. So that's these two lines are being I didn't want to have | ||
196 | |195 |00:17:01 ~-~-> 00:17:05 |two rectangles shown. That's why I show it as a small little line segment, | ||
197 | |196 |00:17:05 ~-~-> 00:17:09 |versus two rectangles close to this one and this one, anyway, smaller fair bag | ||
198 | |197 |00:17:09 ~-~-> 00:17:13 |out there, and it'll look much more obvious when I zoom in. But for now, I | ||
199 | |198 |00:17:13 ~-~-> 00:17:22 |want you to look at what this is. See that? Look at that. So not only is it | ||
200 | |199 |00:17:22 ~-~-> 00:17:27 |lunch, macro, sell side, liquidity pool, grade, retracement into the daily range, | ||
201 | |200 |00:17:27 ~-~-> 00:17:32 |but all over here to down here. Watch all of this. We're going to zoom into | ||
202 | |201 |00:17:32 ~-~-> 00:17:36 |this. This is a fractal we're going to zoom into that. You're going to see. | ||
203 | |202 |00:17:37 ~-~-> 00:17:43 |It's my ICT, market maker, cell model, low accumulation, re accumulation, smart | ||
204 | |203 |00:17:43 ~-~-> 00:17:49 |memory reversal, low risk, cell distribution, redistribution. Second | ||
205 | |204 |00:17:49 ~-~-> 00:17:56 |stage that right there is the best run lower, and it'll quickly deliver to the | ||
206 | |205 |00:17:56 ~-~-> 00:18:00 |standing liquidity or pending orders below that low, beautiful, beautiful, | ||
207 | |206 |00:18:00 ~-~-> 00:18:04 |beautiful, and it pulls back up into the range that was created from here and | ||
208 | |207 |00:18:04 ~-~-> 00:18:09 |here. And basically it became something I'm not interested in the rest of the | ||
209 | |208 |00:18:09 ~-~-> 00:18:12 |day. All right, US dollar, as I mentioned last night, it would need to | ||
210 | |209 |00:18:12 ~-~-> 00:18:18 |trade higher and then use the inversion fair value gap here that I don't have in | ||
211 | |210 |00:18:18 ~-~-> 00:18:23 |the right color. I apologize, but I'm trying to keep it so it's reminding me. | ||
212 | |211 |00:18:23 ~-~-> 00:18:28 |As soon as I see it, it's a forex pair or dollar based and that's what we're | ||
213 | |212 |00:18:28 ~-~-> 00:18:34 |looking at here. So the market rallies off, comes above, and look at the same | ||
214 | |213 |00:18:34 ~-~-> 00:18:38 |quadrants I told you to have on your chart last night. Look what we did at | ||
215 | |214 |00:18:38 ~-~-> 00:18:43 |midnight. We rallied up, we drop down. Perfect delivery. Look at the look at | ||
216 | |215 |00:18:43 ~-~-> 00:18:50 |that. This is beautiful. Rise up to the consequent encroachment and drops down. | ||
217 | |216 |00:18:51 ~-~-> 00:18:55 |Colors Outside the Lines accumulates with the bodies right here on that lower | ||
218 | |217 |00:18:55 ~-~-> 00:18:59 |quadrant level. That's the lower quadrant of the range between this | ||
219 | |218 |00:18:59 ~-~-> 00:19:03 |volume and balance and that volume imbalance there, that candlesticks open | ||
220 | |219 |00:19:03 ~-~-> 00:19:06 |and that candlesticks closed. That's what we're measuring. Put your fib on | ||
221 | |220 |00:19:06 ~-~-> 00:19:13 |that on your daily Dollar Index, and post the 2575 and the 50 level | ||
222 | |221 |00:19:13 ~-~-> 00:19:16 |respectively, and you'll get these levels here on a five minute chart. You | ||
223 | |222 |00:19:16 ~-~-> 00:19:19 |can see it rallies up. Look at the bodies respect and consequent | ||
224 | |223 |00:19:19 ~-~-> 00:19:23 |encroachment. Look at the candlestick right here on the upper quadrant. And | ||
225 | |224 |00:19:23 ~-~-> 00:19:28 |then it sends it accumulates more small little paws of the body's respecting the | ||
226 | |225 |00:19:28 ~-~-> 00:19:33 |high of that inefficiency, and then rallies up, taking out this high. If you | ||
227 | |226 |00:19:33 ~-~-> 00:19:40 |measure the low to this high here and do your standard 0.5 level negative, you'll | ||
228 | |227 |00:19:40 ~-~-> 00:19:44 |get around this high here as a swing projection, which is kind of cute, but | ||
229 | |228 |00:19:45 ~-~-> 00:19:49 |the sensitivity here, okay, these are not pivots, okay. This is nothing in | ||
230 | |229 |00:19:49 ~-~-> 00:19:52 |here. Is Wyckoff, nothing in here, supply and demand. Nothing's Elliott | ||
231 | |230 |00:19:52 ~-~-> 00:19:58 |Wave. Nothing is Hirsch, none of that stuff. This is to simply looking at | ||
232 | |231 |00:19:58 ~-~-> 00:20:02 |inefficiencies and many. Measuring them and looking at them as the algorithm | ||
233 | |232 |00:20:02 ~-~-> 00:20:06 |will. And I'm sorry if that's a hard thing for you to swallow, but that's | ||
234 | |233 |00:20:06 ~-~-> 00:20:08 |just the truth. | ||
235 | |234 |00:20:08 ~-~-> 00:20:13 |And then on the Euro dollar, I mentioned how we ran up here, hit that weekly | ||
236 | |235 |00:20:13 ~-~-> 00:20:18 |relative equal highs, the market has pulled back, and we have this gap in | ||
237 | |236 |00:20:18 ~-~-> 00:20:23 |here that's being measured with these gradient levels, the lower quadrant, | ||
238 | |237 |00:20:23 ~-~-> 00:20:27 |consequent encroachment in the upper quadrant. And then I measured this | ||
239 | |238 |00:20:27 ~-~-> 00:20:31 |premium wick here, which is not useful at the moment. I just have it on there, | ||
240 | |239 |00:20:31 ~-~-> 00:20:35 |because I want to have it in case we see some kind of movement up into these | ||
241 | |240 |00:20:35 ~-~-> 00:20:39 |levels again. So Don't, don't look at this thinking that I'm trying to | ||
242 | |241 |00:20:39 ~-~-> 00:20:45 |indicate anything with it while it was here. These, these are created when the | ||
243 | |242 |00:20:45 ~-~-> 00:20:49 |run up happened, but now I have them on my chart, so if we go back up into that | ||
244 | |243 |00:20:49 ~-~-> 00:20:54 |range, they'll be salient to me at a later time over here. This was practical | ||
245 | |244 |00:20:54 ~-~-> 00:21:01 |for today, because it had already been formed two days ago, three days ago, so | ||
246 | |245 |00:21:02 ~-~-> 00:21:07 |or two days ago, yeah, we have the run here at 2am creating the sell, solid | ||
247 | |246 |00:21:07 ~-~-> 00:21:12 |liquidity pool. High runs the high out. So there's a buy, sell, liquidity purge | ||
248 | |247 |00:21:12 ~-~-> 00:21:17 |there, and here's a venom rally up one candle. Remember, I told you it takes | ||
249 | |248 |00:21:17 ~-~-> 00:21:20 |one, but it can be a number of candles up here, and then you have a single pass | ||
250 | |249 |00:21:20 ~-~-> 00:21:26 |candle down, so up and down, and then we trade up into that candlestick right | ||
251 | |250 |00:21:26 ~-~-> 00:21:32 |there. That's venom. Sells off inversion, fair value gap there. Hits it | ||
252 | |251 |00:21:32 ~-~-> 00:21:35 |hits it again. Don't, don't look at these levels right now, because they're | ||
253 | |252 |00:21:35 ~-~-> 00:21:41 |not pertinent for this period. These are only salient and also there as a result | ||
254 | |253 |00:21:41 ~-~-> 00:21:50 |of this premium wick forming today, we have a fair value gap here breaks down | ||
255 | |254 |00:21:50 ~-~-> 00:21:56 |consolidation in here, measuring gap breaks lower. Institutional or flow | ||
256 | |255 |00:21:56 ~-~-> 00:22:00 |entry drill, which is a gap that only has one little candlestick pop above it | ||
257 | |256 |00:22:00 ~-~-> 00:22:04 |like that. Doesn't even go to halfway point, breaks lower aggressively, takes | ||
258 | |257 |00:22:04 ~-~-> 00:22:12 |the sell side and trades down into the fair value gap between these two candles | ||
259 | |258 |00:22:12 ~-~-> 00:22:16 |here on this one up close candle trades down to it there, beautifully there, and | ||
260 | |259 |00:22:16 ~-~-> 00:22:23 |trades back into the middle of the range of this gap between these three quadrant | ||
261 | |260 |00:22:23 ~-~-> 00:22:28 |levels right here. So that's what I got for today. Hopefully you found that | ||
262 | |261 |00:22:28 ~-~-> 00:22:29 |insightful. Thank you | ||
263 | |262 |00:22:38 ~-~-> 00:22:41 |for your continued interest until I'll talk to you next time. I wish good luck | ||
264 | |263 |00:22:42 ~-~-> 00:22:42 |and good trading. |