ICT - If I Knew Then - Part 2 of 4 - How Would I Study.srt

Version 1.1 by Drunk Monkey on 2020-11-20 11:21

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ICT: Okay, welcome back, folks, this is

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part two of a continuing series of four

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videos. And I want to preface this by

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saying that I am again, hypothetically

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speaking to myself when I was 20 years

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old, and how I would coach myself if I

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had the ability to speak to my younger

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self. This lesson I guess, if I could

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preface it by saying is one of the most

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important things that was delayed in my

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own understanding. One of the things

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that I used to crack the algorithm the

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markets that repeats every single week,

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every single week, this phenomenon takes

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place And I want you to really focus in

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on what I'm showing you here, because at

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first, it's going to seem like, Oh, this

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is classic support resistance. But I'm

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going to change the perspective that you

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have on that dramatically with this

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lesson. It's one of the things that

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helps me abandon the idea of classic

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support resistance. And then it helps me

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understand the real narrative of what's

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going on. And once you see this, and let

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me be very clear, some of you, perhaps

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the majority of you will not fully

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appreciate this video The first time you

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watch it, okay, so it's going to be

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brief. It's not gonna be very long, but

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I want you to have the proper

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expectations coming in. But if you give

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it a second or third viewing, after

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going through your charts, and doing the

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things that I'm going to talk about in

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this video, you're going to see some And

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that has eluded you all this time. Okay,

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and one of the things that well brings

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extra value is I haven't even taught

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this to my mentorship group. And I felt

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inclined to teach this. I felt moved to

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do it. So I'm dealing it. It's not in

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your books. No one else is teaching it,

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no one else talks about it, but they

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will now it'll start spreading around

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like water blocks now become

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institutional candles. These things that

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you're about to see, or rather

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simplistic, but when you take a step

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back, it's gonna require you to study

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and this is the very reason why it has

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eluded everyone. It has eluded

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everyone's perception. It's included

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everyone's realization that this is

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what's actually going on. Until you see

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it for what it really is. It's gonna

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feel like well, this is hindsight, it's

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all, fluff has no value whatsoever. And

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if that's how you feel about it, I

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really want you to never watch another

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video of mine, because you clearly

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you're not prepared to learn the highest

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degree of order flow there is because

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this is how the algorithm from the

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central bank level not the mom and pop

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bank, not the prop traders view of order

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flow. This is what's really going on.

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All right. So you really want to

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understand how the market delivers

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price. This is one of the central

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tenants to it that no one else is going

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to teach you. You're not going to see it

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and you can prove it by going in your

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charts and looking for it. But you have

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to understand what it looks like. So I'm

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going to do that now.

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All right, Michael, you are looking at

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charts, I'm sure wondering what it is

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that you should be looking for. And as a

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trader, we need movement. We need

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volatility, we need a idea of where the

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market is going to be reaching for. So,

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in a nutshell, what we're asking is,

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where do you study setups form? Because

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if you can come to this realization that

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there are study setups, they do form

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repeatedly and they are reoccurring.

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Then you have a steady supply of

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potential wealth making setups. Now,

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you're going to lose trades, you're

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going to you need to put that behind

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you, because you're spending too much

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time worrying about what if you lose?

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What if you win more than you lose? What

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if you stop worrying about losing and

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focusing on how to manage the money and

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the risk and having these repeating

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reoccurring setups that form all the

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time? The sky is not the limit. So the

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things that you worry about at

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nighttime, and while you're at work,

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these things, stop making them Paramount

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because you have enough. You need to

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focus here. Where specifically monthly

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highs and lows, weekly highs and lows,

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daily highs and lows and finally session

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highs and lows. If you understand the

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price flows that occur around these

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highs and lows, you will have everything

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you need for setups. You don't have to

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look for classic chart patterns. You

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don't have to look at trend lines.

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Suppose it support resistance. You don't

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have to concern yourself with moving

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average crossovers. You don't have to

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concern yourself with overbought and

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oversold or divergence. You're going to

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waste a lot of time in many years

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holding on to these things because you

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think that's the real secret because

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they're in all of the books that you're

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buying. It is not the secret, they are

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distractions. And I'm telling you,

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you're going to lose a lot of money

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holding on to that idea and trying to

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prove that you're just doing it slightly

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off. It just if you just have the right

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settings, you're going to figure it out.

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I'm telling you, you're wasting time

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don't do that. You need to focus on

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price, the open the high, the low and

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the close of any interval. These

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intervals, the monthly the weekly daily

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in sessions highs and lows

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Monthly highs and lows, what you want to

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do is look at the monthly high for the

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last couple months, I'm gonna say the

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last three months is a fair, general

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rule of thumb. And you want to take the

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high and the low and you want to mark it

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out and extend that out in the future.

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Because you want to study the reactions,

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and how the markets react around it

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doesn't necessarily mean that particular

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price level. Because the books you're

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reading are saying, that's the magic

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right there. That's the specific level.

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And you're going to lose fortunes using

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these levels trading the way you're

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learning them from the books. So stop,

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don't pay any attention to those things.

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Understand that these books are priming

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you and everyone else around the world

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and spends the time to read them and

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you're being misinformed, because you

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haven't considered this question yet.

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But when you take a step back and think

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about it, it is exactly like these books

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are saying, why isn't everyone else

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rich? It's simple, right? By support. So

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resistance by resistance, broken turn

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support, short support, turn resistance.

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The markets don't work that way. There's

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going to be some examples where you'll

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see it in the books. But I'm telling

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you, you're going to lose money, trying

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to do that. And you're going to waste

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time forcing your will on it, to

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possibly magically fall into your lap

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where it just makes it easy. And I'm

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telling you that day doesn't ever come.

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So don't do it. Don't waste time. What

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should be done at these monthly high And

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lows as you want to see, does price draw

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up to an old monthly high? Or is it

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aiming for it basically? Or is it

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drawing towards an old low? Or if it has

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recently went below an old low? Is it

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rallying up? Because it's probably ran

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stops. And if it's ran stops in the form

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of sales stops, it's probably going to

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reach for an old, monthly high. Even if

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it doesn't make it to that monthly high,

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you still have the potential to find

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setups that would generate momentum in

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that direction. You're going to develop

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this insatiable desire to see your

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trades pan out to perfection. And please

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listen to this. You don't need that

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Michael. You don't need it to be

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perfect. You don't need perfection.

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You're going to have so many sleepless

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nights, and you're going to waste all

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kinds of energy and time doing that

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thing that will never arrive. Perfection

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is never going to get there. If I could

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shake you by the lapels and make you

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understand, it would be this. Stop

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trying to be perfect. You don't need to

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be perfect to be profitable. But

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pursuing perfection will cause you to

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lose multiple live accounts. Because you

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want to be right. It's not about being

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right. It's about being aligned, aligned

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with the order flow. You want to be in

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sync with the algorithm. You're trying

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to fight it. You're trying to make

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indicators tell you what it's going to

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do. And at this time at 20 years old,

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you don't even understand there's an

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algorithm You have no idea that the

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markets are rigged. You think everyone

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with the right indicators are making

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money and you're wrong. And it's going

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to be many years before you realize that

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unless you see this as the fact. So when

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we look at monthly charts, we want to

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see this price drive up into an old

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monthly high or down to an old monthly

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low. Because if it's reaching up to an

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all monthly high, it's probably going to

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trade basically above it and reach for

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the liquidity that we resting above it.

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And or, if it trades down to an old

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monthly low, it's probably going down

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here to reach below for self signed

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liquidity or sell stops. In and of

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itself, that is a huge paradigm shift.

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Because you want old highs and old lows

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to react as support and resistance and

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that is fallacy, you're going to see

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that the market wants to go

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slightly above and slightly below, two

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and through. Remember this, those words

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are going to be meaningful to you later

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on. You won't understand it right now.

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But if you spend time with these

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lessons, you'll understand it quickly to

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end through

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weekly highs and lows. In between the

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monthly highs and lows, you're going to

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have very specific key levels that are

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found by finding the weekly individual

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weekly highs and lows. And you're gonna

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be studying the importance of how price

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will sweep below old monthly and weekly

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lows and then gyrate up and down but

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reach for and opposing weekly, higher

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low. Now in this chart, you're seeing

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the monthly levels highs and lows. But

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I've also annotated where the weekly

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highs and lows are. Now the blue levels,

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I've only put those on here to

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differentiate highs and the red levels

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or lows. It's important for you to

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understand that in your charts, when

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you're laying out your charts, you want

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to have specific colors to reference

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highs and lows. Because if you don't do

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this, you're not going to understand

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what I'm showing you here. When the

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market is able to break above the blue

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levels, what that is indicating that is,

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it's able to trade higher and through

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old highs. Now how it trades above old

266
00:13:48,150 --> 00:13:49,890
highs or in this case two blue lines

267
00:13:50,850 --> 00:13:53,280
gives us an X ray view in terms of the

268
00:13:53,280 --> 00:13:55,080
underlying pinnings of the market. Is it

269
00:13:55,860 --> 00:13:58,470
really bullish? Or is it just reaching

270
00:13:58,470 --> 00:14:00,960
for liquidity and then rejecting Because

271
00:14:00,960 --> 00:14:03,180
if it's taking out multiple blue levels

272
00:14:03,660 --> 00:14:05,760
on the upside, that's actually showing

273
00:14:06,330 --> 00:14:09,000
an underlying bullish narrative that's

274
00:14:09,000 --> 00:14:10,890
in play, and it's going to be reaching

275
00:14:10,890 --> 00:14:14,370
for a higher level pool of liquidity,

276
00:14:14,490 --> 00:14:16,680
not just simply reaching for a weekly

277
00:14:16,680 --> 00:14:18,870
high, it may be reaching for an old

278
00:14:18,870 --> 00:14:22,500
monthly high and vice versa. Everything

279
00:14:22,500 --> 00:14:25,080
said for the opposite. If the market

280
00:14:25,080 --> 00:14:27,120
starts to break down, and takes out

281
00:14:27,120 --> 00:14:28,770
multiple red levels, which would be

282
00:14:28,770 --> 00:14:31,560
indicated by a weekly low or a series of

283
00:14:31,560 --> 00:14:36,480
weekly lows, and or monthly low, then

284
00:14:36,480 --> 00:14:40,110
it's showing relative weakness. And it's

285
00:14:40,140 --> 00:14:43,800
able to break through not just one old

286
00:14:43,800 --> 00:14:46,530
low in the form of a weekly or a monthly

287
00:14:46,530 --> 00:14:49,380
level, but it's going down multiple,

288
00:14:51,000 --> 00:14:53,880
monthly and or weekly lows. So it's

289
00:14:53,880 --> 00:14:56,190
seeking some form of higher timeframe

290
00:14:56,190 --> 00:14:56,730
liquidity

291
00:15:07,649 --> 00:15:10,799
Daily highs and lows. When you get this

292
00:15:10,799 --> 00:15:13,889
lesson, you're going to see there are

293
00:15:13,919 --> 00:15:16,589
setups every single day. Now it's

294
00:15:16,589 --> 00:15:18,989
important to understand that while I'm

295
00:15:19,049 --> 00:15:21,749
outlining the potential for everyday

296
00:15:21,749 --> 00:15:25,079
setups, you are also going to blow many

297
00:15:25,079 --> 00:15:27,419
live accounts trying to day trade and

298
00:15:27,419 --> 00:15:30,689
short term trade every single day. And

299
00:15:30,689 --> 00:15:31,979
you're going to find they're actually

300
00:15:31,979 --> 00:15:33,629
better days to wait. And I'm going to

301
00:15:33,629 --> 00:15:35,309
talk a little bit about that in a couple

302
00:15:35,309 --> 00:15:37,589
minutes. But for now, just know that

303
00:15:39,209 --> 00:15:43,259
being content with profitability early

304
00:15:43,259 --> 00:15:47,339
on in the week is ideal. And taking new

305
00:15:47,339 --> 00:15:50,609
setups late in the week, typically

306
00:15:50,609 --> 00:15:52,409
Thursday or Friday, after being

307
00:15:52,409 --> 00:15:54,929
profitable. This is going to be

308
00:15:54,929 --> 00:15:58,109
problematic for you. Because you think

309
00:15:58,109 --> 00:15:59,219
that you're going to be able to do this

310
00:15:59,219 --> 00:16:01,469
every single day. When you're first

311
00:16:01,469 --> 00:16:04,709
developing, and that is a

312
00:16:04,739 --> 00:16:06,389
misunderstanding on your part, because

313
00:16:06,629 --> 00:16:08,939
you're falling in love with the idea of

314
00:16:08,939 --> 00:16:12,029
winning, and you're not falling in love

315
00:16:12,029 --> 00:16:15,029
with being process oriented, you like

316
00:16:15,029 --> 00:16:17,279
being right. And it doesn't matter how

317
00:16:17,279 --> 00:16:19,529
much money you're making, you are

318
00:16:19,529 --> 00:16:23,879
falling in love with the idea that

319
00:16:23,879 --> 00:16:26,939
you're correct, that you're better than

320
00:16:26,939 --> 00:16:29,189
everyone else. And that's going to be a

321
00:16:29,189 --> 00:16:31,499
trap for you. You don't see it right

322
00:16:31,499 --> 00:16:32,999
now, Michael, but it's going to be a

323
00:16:32,999 --> 00:16:35,549
trap. You think that you have to do this

324
00:16:35,549 --> 00:16:37,889
every single day. It doesn't have to be

325
00:16:37,889 --> 00:16:41,339
done every single day. In the future,

326
00:16:41,369 --> 00:16:42,629
you're going to find a great deal of

327
00:16:42,629 --> 00:16:47,069
comfort by not taking trades right now

328
00:16:47,099 --> 00:16:48,899
feels uncomfortable to you. You don't

329
00:16:48,899 --> 00:16:52,079
feel like it's right to be outside of

330
00:16:52,079 --> 00:16:54,299
the marketplace. The markets are open,

331
00:16:54,569 --> 00:16:55,709
so therefore you should be in their

332
00:16:55,709 --> 00:16:56,819
trading. That's what you think right

333
00:16:56,819 --> 00:17:00,569
now. But you have not understood stood

334
00:17:00,989 --> 00:17:03,059
the potential risks that are involved in

335
00:17:03,059 --> 00:17:05,519
this yet, you're too fixated on the

336
00:17:05,519 --> 00:17:08,819
money. So you have to understand that

337
00:17:09,149 --> 00:17:10,979
when we understand the daily highs and

338
00:17:10,979 --> 00:17:14,909
lows offered the potential for draws on

339
00:17:14,909 --> 00:17:17,999
liquidity. That means the market will

340
00:17:17,999 --> 00:17:20,909
likely go above or daily highs to reach

341
00:17:20,909 --> 00:17:24,839
for buy stops or below or daily lows to

342
00:17:24,839 --> 00:17:28,439
reach for sell stops. Not every single

343
00:17:28,439 --> 00:17:30,989
day is the market providing that

344
00:17:30,989 --> 00:17:32,489
opportunity. Some days, there's

345
00:17:32,489 --> 00:17:33,869
consolidation, some days, it doesn't

346
00:17:33,869 --> 00:17:35,339
even trade to the previous day's high or

347
00:17:35,339 --> 00:17:38,009
low and you have an inside day. Other

348
00:17:38,009 --> 00:17:39,389
days you'll have an outside day which is

349
00:17:39,389 --> 00:17:40,859
it's trading above the previous day's

350
00:17:40,859 --> 00:17:42,359
high and below the previous day's low.

351
00:17:43,409 --> 00:17:44,759
And you're gonna learn there's a lot of

352
00:17:44,759 --> 00:17:49,559
things that are relatively significant

353
00:17:49,559 --> 00:17:51,569
when it comes to individual days that

354
00:17:51,569 --> 00:17:54,059
form like that. But that's outside the

355
00:17:54,059 --> 00:17:56,429
scope of this discussion. I want you to

356
00:17:56,429 --> 00:18:00,329
take a look at this chart. I include Did

357
00:18:00,479 --> 00:18:02,729
the vertical lines that delineate each

358
00:18:02,969 --> 00:18:07,169
daily range. Now, when the market trades

359
00:18:07,469 --> 00:18:11,039
through multiple blue lines, it's

360
00:18:11,039 --> 00:18:13,169
indicating that it has strength to break

361
00:18:13,169 --> 00:18:16,019
old daily highs. And when the market

362
00:18:16,019 --> 00:18:19,169
trades down below old lows in the form

363
00:18:19,169 --> 00:18:21,749
of the red lines, it's showing

364
00:18:21,749 --> 00:18:24,029
willingness to go lower and it's showing

365
00:18:24,029 --> 00:18:27,089
bearishness. Now, it seems obvious, but

366
00:18:27,089 --> 00:18:28,619
that's really not what I'm trying to get

367
00:18:28,619 --> 00:18:30,899
you to understand here. I want you to

368
00:18:30,899 --> 00:18:34,589
see how the market reacts once it trades

369
00:18:34,589 --> 00:18:38,399
below the red lines. If we are bullish,

370
00:18:38,459 --> 00:18:39,899
and we think the market is likely to go

371
00:18:39,899 --> 00:18:42,899
higher, we want to see the market spend

372
00:18:43,379 --> 00:18:45,749
a little time under the red lines and

373
00:18:45,749 --> 00:18:47,249
then once it goes back above the red

374
00:18:47,249 --> 00:18:49,979
line, it needs to trade back through a

375
00:18:49,979 --> 00:18:54,479
blue line, at least because if it does

376
00:18:54,479 --> 00:18:57,479
that, the algorithm will change its

377
00:18:57,479 --> 00:18:59,399
state of delivery where it will no

378
00:18:59,399 --> 00:19:02,519
longer see a necessity to go lower for

379
00:19:02,519 --> 00:19:04,799
liquidity on the downside it'll start to

380
00:19:04,799 --> 00:19:07,469
seek liquidity on the upside. And vice

381
00:19:07,469 --> 00:19:09,779
versa. If the market trades above the

382
00:19:09,779 --> 00:19:11,309
blue lines, which is an old high of some

383
00:19:11,309 --> 00:19:14,069
capacity, once it trades above that blue

384
00:19:14,069 --> 00:19:17,309
line, we want to see it not spend a lot

385
00:19:17,309 --> 00:19:19,949
of time there, then break down back

386
00:19:19,949 --> 00:19:22,769
below the blue line and then seek a run

387
00:19:22,769 --> 00:19:25,679
below a red line which is an old well,

388
00:19:26,249 --> 00:19:28,709
then the delivery state will change from

389
00:19:28,709 --> 00:19:30,359
being bullish to bearish and then the

390
00:19:30,389 --> 00:19:32,099
algorithm will then seek sell side

391
00:19:32,099 --> 00:19:34,619
liquidity which is below an old low or

392
00:19:35,339 --> 00:19:40,319
below a new red line. What I just said

393
00:19:40,319 --> 00:19:43,199
to you, you're not going to pay

394
00:19:43,199 --> 00:19:44,699
attention to the first time you hear it.

395
00:19:45,329 --> 00:19:48,479
It won't mean anything to you until you

396
00:19:48,479 --> 00:19:52,589
start studying it. You're spending hours

397
00:19:52,619 --> 00:19:56,189
every night looking at tweaking RSI

398
00:19:56,189 --> 00:20:00,449
settings stochastic settings The

399
00:20:00,449 --> 00:20:02,069
settings and the right moving average

400
00:20:02,069 --> 00:20:03,659
crossovers and all of that stuff

401
00:20:04,380 --> 00:20:06,030
are distractions. None of it's going to

402
00:20:06,030 --> 00:20:08,700
work. It's not going to work. You're

403
00:20:08,700 --> 00:20:10,620
going to find later on the times that

404
00:20:10,620 --> 00:20:12,930
you were right early on. You were

405
00:20:12,930 --> 00:20:15,660
absolutely lucky buying in markets that

406
00:20:15,660 --> 00:20:18,300
were just predisposed to go up. That's

407
00:20:18,300 --> 00:20:19,920
it. That's all this is, and it's not

408
00:20:19,920 --> 00:20:21,450
gonna feel good. When you find this out.

409
00:20:21,450 --> 00:20:24,630
It's gonna feel unsettling that this is

410
00:20:24,630 --> 00:20:26,370
really what it was that you got lucky

411
00:20:26,430 --> 00:20:28,110
for nine months, you're going to get

412
00:20:28,110 --> 00:20:30,690
lucky. But you're going to feel like

413
00:20:30,690 --> 00:20:32,160
it's skill, you're going to feel like

414
00:20:32,160 --> 00:20:35,280
you figured it all out. And then it

415
00:20:35,310 --> 00:20:39,300
won't work. Everything you do, will

416
00:20:39,300 --> 00:20:41,460
fail. And then you're going to start

417
00:20:41,460 --> 00:20:44,730
using trades without stops, and you're

418
00:20:44,730 --> 00:20:47,940
going to lose money faster. And you're

419
00:20:47,940 --> 00:20:49,350
not going to want to talk about it and

420
00:20:49,350 --> 00:20:50,820
you're going to go through a period of

421
00:20:50,820 --> 00:20:52,980
depression. And I'm telling you how to

422
00:20:52,980 --> 00:20:55,830
avoid debt. But you have to listen to

423
00:20:55,830 --> 00:20:58,410
me, Michael. If you don't listen to me,

424
00:20:58,860 --> 00:21:00,000
you're going to go through that long.

425
00:21:00,000 --> 00:21:04,530
long period of six years of frustration,

426
00:21:05,640 --> 00:21:08,910
faking it like you have it figured all

427
00:21:08,910 --> 00:21:11,760
out, but internally, you're going to be

428
00:21:11,760 --> 00:21:16,290
dying inside. It's avoidable if you

429
00:21:16,290 --> 00:21:21,840
listen. If you look at these individual

430
00:21:21,840 --> 00:21:24,510
days, the vertical lines delineate those

431
00:21:25,440 --> 00:21:27,930
separations between the beginning and

432
00:21:27,960 --> 00:21:29,730
new day and the end of the day and

433
00:21:29,730 --> 00:21:33,120
starting another. When you look at price

434
00:21:33,120 --> 00:21:37,290
like this, it creates a grid. Now, the

435
00:21:37,290 --> 00:21:40,920
algorithm is going to look for sell side

436
00:21:40,920 --> 00:21:43,380
liquidity below old lows and buy side

437
00:21:43,380 --> 00:21:46,800
liquidity above old highs. What you want

438
00:21:46,800 --> 00:21:49,290
to be focusing on on is the times when

439
00:21:49,290 --> 00:21:51,780
the market will change its delivery

440
00:21:51,780 --> 00:21:54,030
state from bearish to bullish, how does

441
00:21:54,030 --> 00:21:57,450
that happen? The algorithm defines it by

442
00:21:57,660 --> 00:22:00,690
what I shown you here. If it goes below

443
00:22:00,690 --> 00:22:03,120
an old low and goes back above it, you

444
00:22:03,120 --> 00:22:05,910
have to see it trade back above an old

445
00:22:05,910 --> 00:22:09,360
high. Once that happens, the algorithm

446
00:22:09,360 --> 00:22:11,460
will change its delivery state, and then

447
00:22:11,460 --> 00:22:15,690
it will now seek the opposing liquidity.

448
00:22:15,870 --> 00:22:17,040
In other words, if it just recently

449
00:22:17,070 --> 00:22:20,610
taken Southside liquidity out, it's

450
00:22:20,610 --> 00:22:22,560
going to be looking for a form of bias

451
00:22:22,560 --> 00:22:24,450
or liquidity. Because that's what the

452
00:22:24,450 --> 00:22:27,150
algorithms doing. It's not able to see

453
00:22:27,150 --> 00:22:29,370
your particular stop, you're going to

454
00:22:29,370 --> 00:22:31,230
feel like it does. And you're going to

455
00:22:31,230 --> 00:22:33,270
spend time on the internet telling

456
00:22:33,270 --> 00:22:35,700
people preaching to people that it is

457
00:22:35,730 --> 00:22:38,100
seeking your stop and everyone else has

458
00:22:38,100 --> 00:22:39,150
stopped because it can see that

459
00:22:39,150 --> 00:22:42,390
particular stop. It can't. The market

460
00:22:42,390 --> 00:22:45,780
cannot see your individual stop, the

461
00:22:45,780 --> 00:22:49,890
broker can. But the algorithm that

462
00:22:49,890 --> 00:22:53,280
delivers price doesn't see it. So we

463
00:22:53,280 --> 00:22:55,110
might be arguing semantics here, but the

464
00:22:55,110 --> 00:22:58,410
point is this. The algorithm understands

465
00:22:58,410 --> 00:23:00,780
where that liquidity is. It's going to

466
00:23:00,780 --> 00:23:03,390
trade to that, because it's offering

467
00:23:03,660 --> 00:23:07,560
smart money. high level, central bank

468
00:23:07,560 --> 00:23:11,970
level, not mom and pop not UBS. And

469
00:23:11,970 --> 00:23:16,170
Credit Suisse, not Citi. Those traders

470
00:23:16,290 --> 00:23:18,930
know Goldman Sachs. None of those people

471
00:23:19,680 --> 00:23:21,660
are who I'm referring to. There are it's

472
00:23:21,660 --> 00:23:23,100
above that they're wrong on the

473
00:23:23,130 --> 00:23:25,800
corporate ladder for institutional

474
00:23:25,800 --> 00:23:27,930
trading is much lower than what I'm

475
00:23:27,930 --> 00:23:31,620
referring to. When the market changes,

476
00:23:31,620 --> 00:23:34,740
its stated delivery. You need to be

477
00:23:34,740 --> 00:23:38,370
focusing in on how it will seek that

478
00:23:38,400 --> 00:23:41,100
next level of liquidity. We've taken

479
00:23:41,100 --> 00:23:44,100
sales liquidity out great. Wait for a

480
00:23:44,400 --> 00:23:47,940
old high to be broken. That's these blue

481
00:23:47,940 --> 00:23:50,100
lines. So if it suites below a red line

482
00:23:50,160 --> 00:23:52,170
and goes back above the red line, okay,

483
00:23:52,200 --> 00:23:53,850
it's a stock run. But is it a buy

484
00:23:53,850 --> 00:23:56,370
because of that? No. You have to wait

485
00:23:56,370 --> 00:23:59,640
for it to take out a blue line. Now

486
00:24:00,660 --> 00:24:03,540
Don't get so wrapped up in the fact that

487
00:24:03,810 --> 00:24:05,280
we have red lines and blue lines,

488
00:24:05,310 --> 00:24:06,900
because you're going to look at this and

489
00:24:06,900 --> 00:24:12,180
say, which lines do I use? It's going to

490
00:24:12,180 --> 00:24:15,450
be whatever line is appropriate at the

491
00:24:15,450 --> 00:24:18,630
moment. For instance, if you're looking

492
00:24:18,630 --> 00:24:23,100
at this low here, we've ran below this

493
00:24:23,220 --> 00:24:26,970
low here, we ran below it. We went back

494
00:24:26,970 --> 00:24:29,280
above the red line here. Until we get

495
00:24:29,310 --> 00:24:33,360
above this blue line here. We will not

496
00:24:33,360 --> 00:24:37,020
have any reason to be a buyer. Because

497
00:24:37,020 --> 00:24:39,990
it has to trade back above an old high,

498
00:24:40,710 --> 00:24:45,540
which is a blue line. By itself, it just

499
00:24:45,540 --> 00:24:47,460
gives you the stage in which the

500
00:24:47,550 --> 00:24:50,100
delivery state at the algorithm, it

501
00:24:50,100 --> 00:24:53,640
won't want to move higher. It won't send

502
00:24:53,640 --> 00:24:55,110
the displacement in the marketplace

503
00:24:55,110 --> 00:24:57,330
higher until it does this. This is like

504
00:24:57,330 --> 00:24:59,430
the first stage that you're waiting for.

505
00:25:00,330 --> 00:25:01,500
Once you get this,

506
00:25:01,619 --> 00:25:03,059
then you can go in and start looking for

507
00:25:03,059 --> 00:25:05,789
more specific criteria to look for

508
00:25:05,789 --> 00:25:07,919
setups. It's, again, it's not an

509
00:25:07,949 --> 00:25:10,859
everyday thing, but this is going to

510
00:25:10,859 --> 00:25:14,129
give you the choices setups. This is the

511
00:25:14,129 --> 00:25:17,459
one that will give you the ideal setups

512
00:25:17,459 --> 00:25:23,249
for that particular week. Yes, that

513
00:25:23,249 --> 00:25:26,009
particular setup that week.

514
00:25:33,960 --> 00:25:36,240
All right, session highs and lows, the

515
00:25:36,240 --> 00:25:39,900
importance of these times of day in

516
00:25:40,050 --> 00:25:42,060
concert with what I've already outlined.

517
00:25:43,140 --> 00:25:45,270
If we know that the market has changed

518
00:25:45,270 --> 00:25:47,760
its delivery state. In other words, the

519
00:25:47,760 --> 00:25:50,010
algorithm has already taken salsa

520
00:25:50,010 --> 00:25:52,740
liquidity out the market will likely

521
00:25:52,740 --> 00:25:55,500
want to go higher and reach for by side

522
00:25:55,500 --> 00:26:01,140
liquidity. We can see that occurring In

523
00:26:01,140 --> 00:26:06,690
here, so we have an old low market

524
00:26:06,690 --> 00:26:08,910
trades down below that it trades back

525
00:26:08,910 --> 00:26:11,400
above the red line. But at all this time

526
00:26:11,400 --> 00:26:13,020
here right in here does it trade above

527
00:26:13,020 --> 00:26:15,300
that next blue line up here, which is an

528
00:26:15,300 --> 00:26:19,560
old high. No, hasn't done that yet. It

529
00:26:19,560 --> 00:26:23,460
does it here. It runs through. Now once

530
00:26:23,460 --> 00:26:27,360
it does that, your eye needs to go back

531
00:26:27,360 --> 00:26:29,310
to where it started from, which is down

532
00:26:29,310 --> 00:26:33,660
here. So this run here is an impulse

533
00:26:33,660 --> 00:26:37,530
leg. You're going to anticipate a

534
00:26:37,530 --> 00:26:39,720
retracement and it's going to retrace

535
00:26:39,720 --> 00:26:43,440
back down. You do not think it's going

536
00:26:43,440 --> 00:26:44,790
to go back below that low because it's

537
00:26:44,790 --> 00:26:46,860
already left the redline it's already

538
00:26:46,860 --> 00:26:49,200
done its job over here. It's swept old

539
00:26:49,200 --> 00:26:52,920
liquidity. Now we went above it. It's in

540
00:26:52,920 --> 00:26:56,340
a consolidation. This run here is what

541
00:26:56,340 --> 00:26:59,760
you wait for. Then you start waiting for

542
00:26:59,760 --> 00:27:02,880
time. time of day, time of day is the

543
00:27:02,880 --> 00:27:04,440
London session between two o'clock and

544
00:27:04,440 --> 00:27:05,520
five o'clock in the morning Eastern

545
00:27:05,520 --> 00:27:08,190
Standard Time. In New York session

546
00:27:08,190 --> 00:27:09,510
between seven o'clock in the morning to

547
00:27:09,510 --> 00:27:13,080
9am. Eastern Standard Time. On this

548
00:27:13,080 --> 00:27:15,780
chart, there's a green level indicating

549
00:27:15,780 --> 00:27:16,830
two o'clock to five o'clock in the

550
00:27:16,830 --> 00:27:19,020
morning. And then seven o'clock to nine

551
00:27:19,020 --> 00:27:20,130
o'clock in the morning is a little red

552
00:27:20,130 --> 00:27:23,220
line. All the little markers to show you

553
00:27:23,430 --> 00:27:28,380
what this looks like. When the market

554
00:27:28,380 --> 00:27:32,640
trades down into the impulse leg, you're

555
00:27:32,640 --> 00:27:36,000
going to feel nervous when you start

556
00:27:36,000 --> 00:27:38,640
trading like this, but you will quickly

557
00:27:38,640 --> 00:27:42,330
see how nice it is to trade with these

558
00:27:42,330 --> 00:27:45,210
movements. When the market drops down

559
00:27:45,210 --> 00:27:47,580
below the blue line, we don't think of

560
00:27:47,580 --> 00:27:50,670
that as a false run here and break down

561
00:27:51,090 --> 00:27:53,340
because the state of deliveries changed

562
00:27:53,340 --> 00:27:54,810
over here it's taken out so some

563
00:27:54,810 --> 00:27:57,300
liquidity. It's consolidated and then it

564
00:27:57,300 --> 00:27:59,430
showed a tan here. So the impulse leg is

565
00:27:59,790 --> 00:28:00,960
the willingness that it wants to go

566
00:28:00,960 --> 00:28:03,810
higher, then you wait for it to drop

567
00:28:03,810 --> 00:28:07,470
down into below the fourth difference

568
00:28:07,470 --> 00:28:08,700
between two o'clock and five o'clock in

569
00:28:08,700 --> 00:28:10,920
the morning, Eastern Standard Time. And

570
00:28:10,920 --> 00:28:14,430
then the ideal scenario is to wait for

571
00:28:14,430 --> 00:28:16,650
it to create an impulse leg there. Now,

572
00:28:17,040 --> 00:28:20,010
you can trade that. But I'm telling you,

573
00:28:20,190 --> 00:28:22,080
you're going to have at least three and

574
00:28:22,080 --> 00:28:25,260
a half years of hit and miss hit and

575
00:28:25,260 --> 00:28:27,420
miss hit and miss because London has a

576
00:28:27,420 --> 00:28:30,570
lot of roles to it. So you want to focus

577
00:28:30,570 --> 00:28:32,340
right away, just trading in New York

578
00:28:32,340 --> 00:28:34,380
session, it's going to be the easiest

579
00:28:34,380 --> 00:28:36,660
one. And later in the future, you're

580
00:28:36,660 --> 00:28:37,680
going to find that you're actually going

581
00:28:37,680 --> 00:28:39,240
to be teaching everyone around the world

582
00:28:39,480 --> 00:28:40,650
that this is the session they should be

583
00:28:40,650 --> 00:28:45,060
starting with as a new trader. This low

584
00:28:45,180 --> 00:28:47,790
to this high, that's your London

585
00:28:47,790 --> 00:28:50,010
impulse, and then it retraces back down

586
00:28:50,010 --> 00:28:51,810
into seven o'clock in the morning to

587
00:28:51,810 --> 00:28:52,950
nine o'clock in the morning. It's going

588
00:28:52,950 --> 00:28:56,670
to create a low there. This is what you

589
00:28:56,670 --> 00:28:58,920
are going to teach the entire world as

590
00:28:58,920 --> 00:29:02,130
optimal trade entry. We call it today,

591
00:29:02,250 --> 00:29:06,000
OT E. This is the setup for the week.

592
00:29:06,030 --> 00:29:08,250
That's ideal. It's easy. And that's the

593
00:29:08,250 --> 00:29:10,680
one you wait for much in the same way,

594
00:29:10,770 --> 00:29:12,330
the previous week on that Wednesday.

595
00:29:12,750 --> 00:29:14,670
Same thing here, it trades back down.

596
00:29:15,690 --> 00:29:17,940
impulse leg, retraces back into the New

597
00:29:17,940 --> 00:29:20,220
York session. This is the OTP or optimal

598
00:29:20,220 --> 00:29:22,260
trade entry, and price runs aggressively

599
00:29:22,260 --> 00:29:26,790
higher. So when you see how the time of

600
00:29:26,790 --> 00:29:31,200
day, day of week, and the changing in

601
00:29:31,200 --> 00:29:33,270
the state of delivery for price after it

602
00:29:33,270 --> 00:29:35,760
runs below a key level of self

603
00:29:35,790 --> 00:29:39,330
liquidity, you wait for a specific

604
00:29:39,450 --> 00:29:42,270
signature in price. When it takes out

605
00:29:42,270 --> 00:29:44,100
Southside liquidity and starts to rally

606
00:29:44,100 --> 00:29:47,700
it has to break an old high. Otherwise

607
00:29:47,730 --> 00:29:49,410
it's going to remain in consolidation.

608
00:29:50,430 --> 00:29:52,470
You're going to struggle and beat

609
00:29:52,470 --> 00:29:54,450
yourself up trading in consolidations

610
00:29:54,480 --> 00:29:57,480
not knowing this. So I'm trying to teach

611
00:29:57,480 --> 00:29:59,730
you now Michael, how to avoid all that

612
00:29:59,730 --> 00:30:03,450
pain. How to know what to look for. This

613
00:30:03,450 --> 00:30:04,500
is what you're supposed to be looking

614
00:30:04,500 --> 00:30:07,500
for. Everything in this example for the

615
00:30:07,500 --> 00:30:10,440
British Pound can be done on a stock, it

616
00:30:10,440 --> 00:30:12,780
can be done on a futures market. It can

617
00:30:12,780 --> 00:30:15,690
be done on any other foreign exchange

618
00:30:15,690 --> 00:30:22,590
pair. It's universal. I didn't pick any

619
00:30:22,590 --> 00:30:26,910
specific form fitted highs and lows. I

620
00:30:26,910 --> 00:30:28,770
went through a series of just the time

621
00:30:28,770 --> 00:30:31,380
that was shown in these charts. I put

622
00:30:31,380 --> 00:30:34,350
the highs and the lows on and that's it.

623
00:30:35,100 --> 00:30:37,830
And I'm showing you how you're going to

624
00:30:37,830 --> 00:30:41,310
pick that one shot one kill every single

625
00:30:41,310 --> 00:30:45,540
week. That one shot one kill setup that

626
00:30:45,540 --> 00:30:47,880
you're waiting for. That the entire

627
00:30:47,880 --> 00:30:51,270
world always wonders how does ICT know

628
00:30:51,270 --> 00:30:53,070
that one particular setup what's going

629
00:30:53,070 --> 00:30:56,070
to happen that week. And they're all

630
00:30:56,070 --> 00:30:57,240
going to clamor and they're going to

631
00:30:57,240 --> 00:31:00,300
email you hundreds a day. We're going to

632
00:31:00,300 --> 00:31:03,210
come to you asking, please show me how

633
00:31:03,210 --> 00:31:05,910
to do this one shot one kill. And I'm

634
00:31:05,910 --> 00:31:07,500
time traveling and telling you right now

635
00:31:07,500 --> 00:31:09,240
Michael, this is how it's done. I'll be

636
00:31:09,240 --> 00:31:11,460
back next Saturday, talk to you. Until

637
00:31:11,460 --> 00:31:12,720
then, keep studying