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Version 1.1 by Drunk Monkey on 2020-11-20 11:21
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3 ICT: Okay, welcome back, folks, this is
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7 part two of a continuing series of four
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11 videos. And I want to preface this by
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15 saying that I am again, hypothetically
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19 speaking to myself when I was 20 years
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23 old, and how I would coach myself if I
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27 had the ability to speak to my younger
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31 self. This lesson I guess, if I could
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35 preface it by saying is one of the most
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39 important things that was delayed in my
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43 own understanding. One of the things
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47 that I used to crack the algorithm the
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51 markets that repeats every single week,
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55 every single week, this phenomenon takes
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59 place And I want you to really focus in
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63 on what I'm showing you here, because at
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67 first, it's going to seem like, Oh, this
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71 is classic support resistance. But I'm
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75 going to change the perspective that you
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79 have on that dramatically with this
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83 lesson. It's one of the things that
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87 helps me abandon the idea of classic
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91 support resistance. And then it helps me
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95 understand the real narrative of what's
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99 going on. And once you see this, and let
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103 me be very clear, some of you, perhaps
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107 the majority of you will not fully
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111 appreciate this video The first time you
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115 watch it, okay, so it's going to be
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119 brief. It's not gonna be very long, but
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123 I want you to have the proper
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127 expectations coming in. But if you give
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131 it a second or third viewing, after
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135 going through your charts, and doing the
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139 things that I'm going to talk about in
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143 this video, you're going to see some And
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147 that has eluded you all this time. Okay,
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151 and one of the things that well brings
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155 extra value is I haven't even taught
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159 this to my mentorship group. And I felt
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163 inclined to teach this. I felt moved to
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167 do it. So I'm dealing it. It's not in
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171 your books. No one else is teaching it,
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175 no one else talks about it, but they
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179 will now it'll start spreading around
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183 like water blocks now become
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187 institutional candles. These things that
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191 you're about to see, or rather
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195 simplistic, but when you take a step
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199 back, it's gonna require you to study
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203 and this is the very reason why it has
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207 eluded everyone. It has eluded
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211 everyone's perception. It's included
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215 everyone's realization that this is
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219 what's actually going on. Until you see
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223 it for what it really is. It's gonna
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227 feel like well, this is hindsight, it's
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231 all, fluff has no value whatsoever. And
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235 if that's how you feel about it, I
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239 really want you to never watch another
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243 video of mine, because you clearly
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247 you're not prepared to learn the highest
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251 degree of order flow there is because
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255 this is how the algorithm from the
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259 central bank level not the mom and pop
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263 bank, not the prop traders view of order
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267 flow. This is what's really going on.
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271 All right. So you really want to
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275 understand how the market delivers
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279 price. This is one of the central
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283 tenants to it that no one else is going
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287 to teach you. You're not going to see it
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291 and you can prove it by going in your
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295 charts and looking for it. But you have
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299 to understand what it looks like. So I'm
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303 going to do that now.
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307 All right, Michael, you are looking at
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311 charts, I'm sure wondering what it is
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315 that you should be looking for. And as a
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319 trader, we need movement. We need
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323 volatility, we need a idea of where the
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327 market is going to be reaching for. So,
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331 in a nutshell, what we're asking is,
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335 where do you study setups form? Because
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339 if you can come to this realization that
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343 there are study setups, they do form
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347 repeatedly and they are reoccurring.
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351 Then you have a steady supply of
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355 potential wealth making setups. Now,
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359 you're going to lose trades, you're
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363 going to you need to put that behind
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367 you, because you're spending too much
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371 time worrying about what if you lose?
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375 What if you win more than you lose? What
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379 if you stop worrying about losing and
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383 focusing on how to manage the money and
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387 the risk and having these repeating
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391 reoccurring setups that form all the
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395 time? The sky is not the limit. So the
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399 things that you worry about at
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403 nighttime, and while you're at work,
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407 these things, stop making them Paramount
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411 because you have enough. You need to
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415 focus here. Where specifically monthly
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419 highs and lows, weekly highs and lows,
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423 daily highs and lows and finally session
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427 highs and lows. If you understand the
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431 price flows that occur around these
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435 highs and lows, you will have everything
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439 you need for setups. You don't have to
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443 look for classic chart patterns. You
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447 don't have to look at trend lines.
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451 Suppose it support resistance. You don't
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455 have to concern yourself with moving
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459 average crossovers. You don't have to
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463 concern yourself with overbought and
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467 oversold or divergence. You're going to
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471 waste a lot of time in many years
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475 holding on to these things because you
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479 think that's the real secret because
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483 they're in all of the books that you're
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487 buying. It is not the secret, they are
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491 distractions. And I'm telling you,
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495 you're going to lose a lot of money
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499 holding on to that idea and trying to
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503 prove that you're just doing it slightly
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507 off. It just if you just have the right
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511 settings, you're going to figure it out.
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515 I'm telling you, you're wasting time
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519 don't do that. You need to focus on
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523 price, the open the high, the low and
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527 the close of any interval. These
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531 intervals, the monthly the weekly daily
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535 in sessions highs and lows
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539 Monthly highs and lows, what you want to
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543 do is look at the monthly high for the
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547 last couple months, I'm gonna say the
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551 last three months is a fair, general
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555 rule of thumb. And you want to take the
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559 high and the low and you want to mark it
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563 out and extend that out in the future.
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567 Because you want to study the reactions,
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571 and how the markets react around it
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575 doesn't necessarily mean that particular
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579 price level. Because the books you're
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583 reading are saying, that's the magic
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587 right there. That's the specific level.
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591 And you're going to lose fortunes using
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595 these levels trading the way you're
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599 learning them from the books. So stop,
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603 don't pay any attention to those things.
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607 Understand that these books are priming
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611 you and everyone else around the world
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615 and spends the time to read them and
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619 you're being misinformed, because you
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623 haven't considered this question yet.
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627 But when you take a step back and think
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631 about it, it is exactly like these books
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635 are saying, why isn't everyone else
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639 rich? It's simple, right? By support. So
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643 resistance by resistance, broken turn
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647 support, short support, turn resistance.
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651 The markets don't work that way. There's
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655 going to be some examples where you'll
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659 see it in the books. But I'm telling
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663 you, you're going to lose money, trying
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667 to do that. And you're going to waste
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671 time forcing your will on it, to
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675 possibly magically fall into your lap
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679 where it just makes it easy. And I'm
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683 telling you that day doesn't ever come.
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687 So don't do it. Don't waste time. What
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691 should be done at these monthly high And
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695 lows as you want to see, does price draw
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699 up to an old monthly high? Or is it
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703 aiming for it basically? Or is it
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707 drawing towards an old low? Or if it has
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711 recently went below an old low? Is it
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715 rallying up? Because it's probably ran
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719 stops. And if it's ran stops in the form
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723 of sales stops, it's probably going to
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727 reach for an old, monthly high. Even if
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731 it doesn't make it to that monthly high,
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735 you still have the potential to find
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739 setups that would generate momentum in
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743 that direction. You're going to develop
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747 this insatiable desire to see your
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751 trades pan out to perfection. And please
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755 listen to this. You don't need that
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759 Michael. You don't need it to be
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763 perfect. You don't need perfection.
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767 You're going to have so many sleepless
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771 nights, and you're going to waste all
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775 kinds of energy and time doing that
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779 thing that will never arrive. Perfection
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783 is never going to get there. If I could
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787 shake you by the lapels and make you
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791 understand, it would be this. Stop
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795 trying to be perfect. You don't need to
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799 be perfect to be profitable. But
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803 pursuing perfection will cause you to
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807 lose multiple live accounts. Because you
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811 want to be right. It's not about being
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815 right. It's about being aligned, aligned
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817 205
818 00:10:44,760 ~-~-> 00:10:47,130
819 with the order flow. You want to be in
820
821 206
822 00:10:47,130 ~-~-> 00:10:50,160
823 sync with the algorithm. You're trying
824
825 207
826 00:10:50,160 ~-~-> 00:10:52,620
827 to fight it. You're trying to make
828
829 208
830 00:10:52,650 ~-~-> 00:10:54,300
831 indicators tell you what it's going to
832
833 209
834 00:10:54,300 ~-~-> 00:10:57,120
835 do. And at this time at 20 years old,
836
837 210
838 00:10:57,360 ~-~-> 00:10:58,560
839 you don't even understand there's an
840
841 211
842 00:10:58,560 ~-~-> 00:11:00,960
843 algorithm You have no idea that the
844
845 212
846 00:11:00,960 ~-~-> 00:11:03,570
847 markets are rigged. You think everyone
848
849 213
850 00:11:03,570 ~-~-> 00:11:04,650
851 with the right indicators are making
852
853 214
854 00:11:04,650 ~-~-> 00:11:08,310
855 money and you're wrong. And it's going
856
857 215
858 00:11:08,310 ~-~-> 00:11:10,290
859 to be many years before you realize that
860
861 216
862 00:11:10,320 ~-~-> 00:11:16,110
863 unless you see this as the fact. So when
864
865 217
866 00:11:16,110 ~-~-> 00:11:18,990
867 we look at monthly charts, we want to
868
869 218
870 00:11:18,990 ~-~-> 00:11:23,100
871 see this price drive up into an old
872
873 219
874 00:11:23,100 ~-~-> 00:11:26,520
875 monthly high or down to an old monthly
876
877 220
878 00:11:26,520 ~-~-> 00:11:29,220
879 low. Because if it's reaching up to an
880
881 221
882 00:11:29,220 ~-~-> 00:11:31,350
883 all monthly high, it's probably going to
884
885 222
886 00:11:31,380 ~-~-> 00:11:35,010
887 trade basically above it and reach for
888
889 223
890 00:11:35,010 ~-~-> 00:11:36,510
891 the liquidity that we resting above it.
892
893 224
894 00:11:38,100 ~-~-> 00:11:40,620
895 And or, if it trades down to an old
896
897 225
898 00:11:40,620 ~-~-> 00:11:42,900
899 monthly low, it's probably going down
900
901 226
902 00:11:42,900 ~-~-> 00:11:44,880
903 here to reach below for self signed
904
905 227
906 00:11:44,880 ~-~-> 00:11:48,720
907 liquidity or sell stops. In and of
908
909 228
910 00:11:48,720 ~-~-> 00:11:52,590
911 itself, that is a huge paradigm shift.
912
913 229
914 00:11:53,550 ~-~-> 00:11:56,280
915 Because you want old highs and old lows
916
917 230
918 00:11:56,640 ~-~-> 00:11:59,580
919 to react as support and resistance and
920
921 231
922 00:11:59,580 ~-~-> 00:12:02,520
923 that is fallacy, you're going to see
924
925 232
926 00:12:02,520 ~-~-> 00:12:03,960
927 that the market wants to go
928
929 233
930 00:12:04,170 ~-~-> 00:12:08,790
931 slightly above and slightly below, two
932
933 234
934 00:12:08,790 ~-~-> 00:12:11,520
935 and through. Remember this, those words
936
937 235
938 00:12:11,520 ~-~-> 00:12:13,140
939 are going to be meaningful to you later
940
941 236
942 00:12:13,140 ~-~-> 00:12:15,330
943 on. You won't understand it right now.
944
945 237
946 00:12:15,930 ~-~-> 00:12:17,580
947 But if you spend time with these
948
949 238
950 00:12:17,640 ~-~-> 00:12:21,540
951 lessons, you'll understand it quickly to
952
953 239
954 00:12:21,690 ~-~-> 00:12:22,380
955 end through
956
957 240
958 00:12:29,460 ~-~-> 00:12:33,540
959 weekly highs and lows. In between the
960
961 241
962 00:12:33,540 ~-~-> 00:12:34,890
963 monthly highs and lows, you're going to
964
965 242
966 00:12:34,890 ~-~-> 00:12:37,950
967 have very specific key levels that are
968
969 243
970 00:12:37,950 ~-~-> 00:12:40,590
971 found by finding the weekly individual
972
973 244
974 00:12:40,590 ~-~-> 00:12:42,750
975 weekly highs and lows. And you're gonna
976
977 245
978 00:12:42,750 ~-~-> 00:12:45,690
979 be studying the importance of how price
980
981 246
982 00:12:45,690 ~-~-> 00:12:48,060
983 will sweep below old monthly and weekly
984
985 247
986 00:12:48,060 ~-~-> 00:12:51,000
987 lows and then gyrate up and down but
988
989 248
990 00:12:51,000 ~-~-> 00:12:53,790
991 reach for and opposing weekly, higher
992
993 249
994 00:12:53,790 ~-~-> 00:12:58,560
995 low. Now in this chart, you're seeing
996
997 250
998 00:12:58,980 ~-~-> 00:13:01,560
999 the monthly levels highs and lows. But
1000
1001 251
1002 00:13:01,560 ~-~-> 00:13:04,320
1003 I've also annotated where the weekly
1004
1005 252
1006 00:13:04,320 ~-~-> 00:13:08,220
1007 highs and lows are. Now the blue levels,
1008
1009 253
1010 00:13:08,670 ~-~-> 00:13:09,990
1011 I've only put those on here to
1012
1013 254
1014 00:13:09,990 ~-~-> 00:13:14,130
1015 differentiate highs and the red levels
1016
1017 255
1018 00:13:14,790 ~-~-> 00:13:18,540
1019 or lows. It's important for you to
1020
1021 256
1022 00:13:18,540 ~-~-> 00:13:21,600
1023 understand that in your charts, when
1024
1025 257
1026 00:13:21,600 ~-~-> 00:13:24,360
1027 you're laying out your charts, you want
1028
1029 258
1030 00:13:24,360 ~-~-> 00:13:27,840
1031 to have specific colors to reference
1032
1033 259
1034 00:13:27,900 ~-~-> 00:13:30,360
1035 highs and lows. Because if you don't do
1036
1037 260
1038 00:13:30,360 ~-~-> 00:13:32,010
1039 this, you're not going to understand
1040
1041 261
1042 00:13:32,010 ~-~-> 00:13:35,790
1043 what I'm showing you here. When the
1044
1045 262
1046 00:13:35,790 ~-~-> 00:13:39,120
1047 market is able to break above the blue
1048
1049 263
1050 00:13:39,120 ~-~-> 00:13:41,370
1051 levels, what that is indicating that is,
1052
1053 264
1054 00:13:41,940 ~-~-> 00:13:44,670
1055 it's able to trade higher and through
1056
1057 265
1058 00:13:44,670 ~-~-> 00:13:48,150
1059 old highs. Now how it trades above old
1060
1061 266
1062 00:13:48,150 ~-~-> 00:13:49,890
1063 highs or in this case two blue lines
1064
1065 267
1066 00:13:50,850 ~-~-> 00:13:53,280
1067 gives us an X ray view in terms of the
1068
1069 268
1070 00:13:53,280 ~-~-> 00:13:55,080
1071 underlying pinnings of the market. Is it
1072
1073 269
1074 00:13:55,860 ~-~-> 00:13:58,470
1075 really bullish? Or is it just reaching
1076
1077 270
1078 00:13:58,470 ~-~-> 00:14:00,960
1079 for liquidity and then rejecting Because
1080
1081 271
1082 00:14:00,960 ~-~-> 00:14:03,180
1083 if it's taking out multiple blue levels
1084
1085 272
1086 00:14:03,660 ~-~-> 00:14:05,760
1087 on the upside, that's actually showing
1088
1089 273
1090 00:14:06,330 ~-~-> 00:14:09,000
1091 an underlying bullish narrative that's
1092
1093 274
1094 00:14:09,000 ~-~-> 00:14:10,890
1095 in play, and it's going to be reaching
1096
1097 275
1098 00:14:10,890 ~-~-> 00:14:14,370
1099 for a higher level pool of liquidity,
1100
1101 276
1102 00:14:14,490 ~-~-> 00:14:16,680
1103 not just simply reaching for a weekly
1104
1105 277
1106 00:14:16,680 ~-~-> 00:14:18,870
1107 high, it may be reaching for an old
1108
1109 278
1110 00:14:18,870 ~-~-> 00:14:22,500
1111 monthly high and vice versa. Everything
1112
1113 279
1114 00:14:22,500 ~-~-> 00:14:25,080
1115 said for the opposite. If the market
1116
1117 280
1118 00:14:25,080 ~-~-> 00:14:27,120
1119 starts to break down, and takes out
1120
1121 281
1122 00:14:27,120 ~-~-> 00:14:28,770
1123 multiple red levels, which would be
1124
1125 282
1126 00:14:28,770 ~-~-> 00:14:31,560
1127 indicated by a weekly low or a series of
1128
1129 283
1130 00:14:31,560 ~-~-> 00:14:36,480
1131 weekly lows, and or monthly low, then
1132
1133 284
1134 00:14:36,480 ~-~-> 00:14:40,110
1135 it's showing relative weakness. And it's
1136
1137 285
1138 00:14:40,140 ~-~-> 00:14:43,800
1139 able to break through not just one old
1140
1141 286
1142 00:14:43,800 ~-~-> 00:14:46,530
1143 low in the form of a weekly or a monthly
1144
1145 287
1146 00:14:46,530 ~-~-> 00:14:49,380
1147 level, but it's going down multiple,
1148
1149 288
1150 00:14:51,000 ~-~-> 00:14:53,880
1151 monthly and or weekly lows. So it's
1152
1153 289
1154 00:14:53,880 ~-~-> 00:14:56,190
1155 seeking some form of higher timeframe
1156
1157 290
1158 00:14:56,190 ~-~-> 00:14:56,730
1159 liquidity
1160
1161 291
1162 00:15:07,649 ~-~-> 00:15:10,799
1163 Daily highs and lows. When you get this
1164
1165 292
1166 00:15:10,799 ~-~-> 00:15:13,889
1167 lesson, you're going to see there are
1168
1169 293
1170 00:15:13,919 ~-~-> 00:15:16,589
1171 setups every single day. Now it's
1172
1173 294
1174 00:15:16,589 ~-~-> 00:15:18,989
1175 important to understand that while I'm
1176
1177 295
1178 00:15:19,049 ~-~-> 00:15:21,749
1179 outlining the potential for everyday
1180
1181 296
1182 00:15:21,749 ~-~-> 00:15:25,079
1183 setups, you are also going to blow many
1184
1185 297
1186 00:15:25,079 ~-~-> 00:15:27,419
1187 live accounts trying to day trade and
1188
1189 298
1190 00:15:27,419 ~-~-> 00:15:30,689
1191 short term trade every single day. And
1192
1193 299
1194 00:15:30,689 ~-~-> 00:15:31,979
1195 you're going to find they're actually
1196
1197 300
1198 00:15:31,979 ~-~-> 00:15:33,629
1199 better days to wait. And I'm going to
1200
1201 301
1202 00:15:33,629 ~-~-> 00:15:35,309
1203 talk a little bit about that in a couple
1204
1205 302
1206 00:15:35,309 ~-~-> 00:15:37,589
1207 minutes. But for now, just know that
1208
1209 303
1210 00:15:39,209 ~-~-> 00:15:43,259
1211 being content with profitability early
1212
1213 304
1214 00:15:43,259 ~-~-> 00:15:47,339
1215 on in the week is ideal. And taking new
1216
1217 305
1218 00:15:47,339 ~-~-> 00:15:50,609
1219 setups late in the week, typically
1220
1221 306
1222 00:15:50,609 ~-~-> 00:15:52,409
1223 Thursday or Friday, after being
1224
1225 307
1226 00:15:52,409 ~-~-> 00:15:54,929
1227 profitable. This is going to be
1228
1229 308
1230 00:15:54,929 ~-~-> 00:15:58,109
1231 problematic for you. Because you think
1232
1233 309
1234 00:15:58,109 ~-~-> 00:15:59,219
1235 that you're going to be able to do this
1236
1237 310
1238 00:15:59,219 ~-~-> 00:16:01,469
1239 every single day. When you're first
1240
1241 311
1242 00:16:01,469 ~-~-> 00:16:04,709
1243 developing, and that is a
1244
1245 312
1246 00:16:04,739 ~-~-> 00:16:06,389
1247 misunderstanding on your part, because
1248
1249 313
1250 00:16:06,629 ~-~-> 00:16:08,939
1251 you're falling in love with the idea of
1252
1253 314
1254 00:16:08,939 ~-~-> 00:16:12,029
1255 winning, and you're not falling in love
1256
1257 315
1258 00:16:12,029 ~-~-> 00:16:15,029
1259 with being process oriented, you like
1260
1261 316
1262 00:16:15,029 ~-~-> 00:16:17,279
1263 being right. And it doesn't matter how
1264
1265 317
1266 00:16:17,279 ~-~-> 00:16:19,529
1267 much money you're making, you are
1268
1269 318
1270 00:16:19,529 ~-~-> 00:16:23,879
1271 falling in love with the idea that
1272
1273 319
1274 00:16:23,879 ~-~-> 00:16:26,939
1275 you're correct, that you're better than
1276
1277 320
1278 00:16:26,939 ~-~-> 00:16:29,189
1279 everyone else. And that's going to be a
1280
1281 321
1282 00:16:29,189 ~-~-> 00:16:31,499
1283 trap for you. You don't see it right
1284
1285 322
1286 00:16:31,499 ~-~-> 00:16:32,999
1287 now, Michael, but it's going to be a
1288
1289 323
1290 00:16:32,999 ~-~-> 00:16:35,549
1291 trap. You think that you have to do this
1292
1293 324
1294 00:16:35,549 ~-~-> 00:16:37,889
1295 every single day. It doesn't have to be
1296
1297 325
1298 00:16:37,889 ~-~-> 00:16:41,339
1299 done every single day. In the future,
1300
1301 326
1302 00:16:41,369 ~-~-> 00:16:42,629
1303 you're going to find a great deal of
1304
1305 327
1306 00:16:42,629 ~-~-> 00:16:47,069
1307 comfort by not taking trades right now
1308
1309 328
1310 00:16:47,099 ~-~-> 00:16:48,899
1311 feels uncomfortable to you. You don't
1312
1313 329
1314 00:16:48,899 ~-~-> 00:16:52,079
1315 feel like it's right to be outside of
1316
1317 330
1318 00:16:52,079 ~-~-> 00:16:54,299
1319 the marketplace. The markets are open,
1320
1321 331
1322 00:16:54,569 ~-~-> 00:16:55,709
1323 so therefore you should be in their
1324
1325 332
1326 00:16:55,709 ~-~-> 00:16:56,819
1327 trading. That's what you think right
1328
1329 333
1330 00:16:56,819 ~-~-> 00:17:00,569
1331 now. But you have not understood stood
1332
1333 334
1334 00:17:00,989 ~-~-> 00:17:03,059
1335 the potential risks that are involved in
1336
1337 335
1338 00:17:03,059 ~-~-> 00:17:05,519
1339 this yet, you're too fixated on the
1340
1341 336
1342 00:17:05,519 ~-~-> 00:17:08,819
1343 money. So you have to understand that
1344
1345 337
1346 00:17:09,149 ~-~-> 00:17:10,979
1347 when we understand the daily highs and
1348
1349 338
1350 00:17:10,979 ~-~-> 00:17:14,909
1351 lows offered the potential for draws on
1352
1353 339
1354 00:17:14,909 ~-~-> 00:17:17,999
1355 liquidity. That means the market will
1356
1357 340
1358 00:17:17,999 ~-~-> 00:17:20,909
1359 likely go above or daily highs to reach
1360
1361 341
1362 00:17:20,909 ~-~-> 00:17:24,839
1363 for buy stops or below or daily lows to
1364
1365 342
1366 00:17:24,839 ~-~-> 00:17:28,439
1367 reach for sell stops. Not every single
1368
1369 343
1370 00:17:28,439 ~-~-> 00:17:30,989
1371 day is the market providing that
1372
1373 344
1374 00:17:30,989 ~-~-> 00:17:32,489
1375 opportunity. Some days, there's
1376
1377 345
1378 00:17:32,489 ~-~-> 00:17:33,869
1379 consolidation, some days, it doesn't
1380
1381 346
1382 00:17:33,869 ~-~-> 00:17:35,339
1383 even trade to the previous day's high or
1384
1385 347
1386 00:17:35,339 ~-~-> 00:17:38,009
1387 low and you have an inside day. Other
1388
1389 348
1390 00:17:38,009 ~-~-> 00:17:39,389
1391 days you'll have an outside day which is
1392
1393 349
1394 00:17:39,389 ~-~-> 00:17:40,859
1395 it's trading above the previous day's
1396
1397 350
1398 00:17:40,859 ~-~-> 00:17:42,359
1399 high and below the previous day's low.
1400
1401 351
1402 00:17:43,409 ~-~-> 00:17:44,759
1403 And you're gonna learn there's a lot of
1404
1405 352
1406 00:17:44,759 ~-~-> 00:17:49,559
1407 things that are relatively significant
1408
1409 353
1410 00:17:49,559 ~-~-> 00:17:51,569
1411 when it comes to individual days that
1412
1413 354
1414 00:17:51,569 ~-~-> 00:17:54,059
1415 form like that. But that's outside the
1416
1417 355
1418 00:17:54,059 ~-~-> 00:17:56,429
1419 scope of this discussion. I want you to
1420
1421 356
1422 00:17:56,429 ~-~-> 00:18:00,329
1423 take a look at this chart. I include Did
1424
1425 357
1426 00:18:00,479 ~-~-> 00:18:02,729
1427 the vertical lines that delineate each
1428
1429 358
1430 00:18:02,969 ~-~-> 00:18:07,169
1431 daily range. Now, when the market trades
1432
1433 359
1434 00:18:07,469 ~-~-> 00:18:11,039
1435 through multiple blue lines, it's
1436
1437 360
1438 00:18:11,039 ~-~-> 00:18:13,169
1439 indicating that it has strength to break
1440
1441 361
1442 00:18:13,169 ~-~-> 00:18:16,019
1443 old daily highs. And when the market
1444
1445 362
1446 00:18:16,019 ~-~-> 00:18:19,169
1447 trades down below old lows in the form
1448
1449 363
1450 00:18:19,169 ~-~-> 00:18:21,749
1451 of the red lines, it's showing
1452
1453 364
1454 00:18:21,749 ~-~-> 00:18:24,029
1455 willingness to go lower and it's showing
1456
1457 365
1458 00:18:24,029 ~-~-> 00:18:27,089
1459 bearishness. Now, it seems obvious, but
1460
1461 366
1462 00:18:27,089 ~-~-> 00:18:28,619
1463 that's really not what I'm trying to get
1464
1465 367
1466 00:18:28,619 ~-~-> 00:18:30,899
1467 you to understand here. I want you to
1468
1469 368
1470 00:18:30,899 ~-~-> 00:18:34,589
1471 see how the market reacts once it trades
1472
1473 369
1474 00:18:34,589 ~-~-> 00:18:38,399
1475 below the red lines. If we are bullish,
1476
1477 370
1478 00:18:38,459 ~-~-> 00:18:39,899
1479 and we think the market is likely to go
1480
1481 371
1482 00:18:39,899 ~-~-> 00:18:42,899
1483 higher, we want to see the market spend
1484
1485 372
1486 00:18:43,379 ~-~-> 00:18:45,749
1487 a little time under the red lines and
1488
1489 373
1490 00:18:45,749 ~-~-> 00:18:47,249
1491 then once it goes back above the red
1492
1493 374
1494 00:18:47,249 ~-~-> 00:18:49,979
1495 line, it needs to trade back through a
1496
1497 375
1498 00:18:49,979 ~-~-> 00:18:54,479
1499 blue line, at least because if it does
1500
1501 376
1502 00:18:54,479 ~-~-> 00:18:57,479
1503 that, the algorithm will change its
1504
1505 377
1506 00:18:57,479 ~-~-> 00:18:59,399
1507 state of delivery where it will no
1508
1509 378
1510 00:18:59,399 ~-~-> 00:19:02,519
1511 longer see a necessity to go lower for
1512
1513 379
1514 00:19:02,519 ~-~-> 00:19:04,799
1515 liquidity on the downside it'll start to
1516
1517 380
1518 00:19:04,799 ~-~-> 00:19:07,469
1519 seek liquidity on the upside. And vice
1520
1521 381
1522 00:19:07,469 ~-~-> 00:19:09,779
1523 versa. If the market trades above the
1524
1525 382
1526 00:19:09,779 ~-~-> 00:19:11,309
1527 blue lines, which is an old high of some
1528
1529 383
1530 00:19:11,309 ~-~-> 00:19:14,069
1531 capacity, once it trades above that blue
1532
1533 384
1534 00:19:14,069 ~-~-> 00:19:17,309
1535 line, we want to see it not spend a lot
1536
1537 385
1538 00:19:17,309 ~-~-> 00:19:19,949
1539 of time there, then break down back
1540
1541 386
1542 00:19:19,949 ~-~-> 00:19:22,769
1543 below the blue line and then seek a run
1544
1545 387
1546 00:19:22,769 ~-~-> 00:19:25,679
1547 below a red line which is an old well,
1548
1549 388
1550 00:19:26,249 ~-~-> 00:19:28,709
1551 then the delivery state will change from
1552
1553 389
1554 00:19:28,709 ~-~-> 00:19:30,359
1555 being bullish to bearish and then the
1556
1557 390
1558 00:19:30,389 ~-~-> 00:19:32,099
1559 algorithm will then seek sell side
1560
1561 391
1562 00:19:32,099 ~-~-> 00:19:34,619
1563 liquidity which is below an old low or
1564
1565 392
1566 00:19:35,339 ~-~-> 00:19:40,319
1567 below a new red line. What I just said
1568
1569 393
1570 00:19:40,319 ~-~-> 00:19:43,199
1571 to you, you're not going to pay
1572
1573 394
1574 00:19:43,199 ~-~-> 00:19:44,699
1575 attention to the first time you hear it.
1576
1577 395
1578 00:19:45,329 ~-~-> 00:19:48,479
1579 It won't mean anything to you until you
1580
1581 396
1582 00:19:48,479 ~-~-> 00:19:52,589
1583 start studying it. You're spending hours
1584
1585 397
1586 00:19:52,619 ~-~-> 00:19:56,189
1587 every night looking at tweaking RSI
1588
1589 398
1590 00:19:56,189 ~-~-> 00:20:00,449
1591 settings stochastic settings The
1592
1593 399
1594 00:20:00,449 ~-~-> 00:20:02,069
1595 settings and the right moving average
1596
1597 400
1598 00:20:02,069 ~-~-> 00:20:03,659
1599 crossovers and all of that stuff
1600
1601 401
1602 00:20:04,380 ~-~-> 00:20:06,030
1603 are distractions. None of it's going to
1604
1605 402
1606 00:20:06,030 ~-~-> 00:20:08,700
1607 work. It's not going to work. You're
1608
1609 403
1610 00:20:08,700 ~-~-> 00:20:10,620
1611 going to find later on the times that
1612
1613 404
1614 00:20:10,620 ~-~-> 00:20:12,930
1615 you were right early on. You were
1616
1617 405
1618 00:20:12,930 ~-~-> 00:20:15,660
1619 absolutely lucky buying in markets that
1620
1621 406
1622 00:20:15,660 ~-~-> 00:20:18,300
1623 were just predisposed to go up. That's
1624
1625 407
1626 00:20:18,300 ~-~-> 00:20:19,920
1627 it. That's all this is, and it's not
1628
1629 408
1630 00:20:19,920 ~-~-> 00:20:21,450
1631 gonna feel good. When you find this out.
1632
1633 409
1634 00:20:21,450 ~-~-> 00:20:24,630
1635 It's gonna feel unsettling that this is
1636
1637 410
1638 00:20:24,630 ~-~-> 00:20:26,370
1639 really what it was that you got lucky
1640
1641 411
1642 00:20:26,430 ~-~-> 00:20:28,110
1643 for nine months, you're going to get
1644
1645 412
1646 00:20:28,110 ~-~-> 00:20:30,690
1647 lucky. But you're going to feel like
1648
1649 413
1650 00:20:30,690 ~-~-> 00:20:32,160
1651 it's skill, you're going to feel like
1652
1653 414
1654 00:20:32,160 ~-~-> 00:20:35,280
1655 you figured it all out. And then it
1656
1657 415
1658 00:20:35,310 ~-~-> 00:20:39,300
1659 won't work. Everything you do, will
1660
1661 416
1662 00:20:39,300 ~-~-> 00:20:41,460
1663 fail. And then you're going to start
1664
1665 417
1666 00:20:41,460 ~-~-> 00:20:44,730
1667 using trades without stops, and you're
1668
1669 418
1670 00:20:44,730 ~-~-> 00:20:47,940
1671 going to lose money faster. And you're
1672
1673 419
1674 00:20:47,940 ~-~-> 00:20:49,350
1675 not going to want to talk about it and
1676
1677 420
1678 00:20:49,350 ~-~-> 00:20:50,820
1679 you're going to go through a period of
1680
1681 421
1682 00:20:50,820 ~-~-> 00:20:52,980
1683 depression. And I'm telling you how to
1684
1685 422
1686 00:20:52,980 ~-~-> 00:20:55,830
1687 avoid debt. But you have to listen to
1688
1689 423
1690 00:20:55,830 ~-~-> 00:20:58,410
1691 me, Michael. If you don't listen to me,
1692
1693 424
1694 00:20:58,860 ~-~-> 00:21:00,000
1695 you're going to go through that long.
1696
1697 425
1698 00:21:00,000 ~-~-> 00:21:04,530
1699 long period of six years of frustration,
1700
1701 426
1702 00:21:05,640 ~-~-> 00:21:08,910
1703 faking it like you have it figured all
1704
1705 427
1706 00:21:08,910 ~-~-> 00:21:11,760
1707 out, but internally, you're going to be
1708
1709 428
1710 00:21:11,760 ~-~-> 00:21:16,290
1711 dying inside. It's avoidable if you
1712
1713 429
1714 00:21:16,290 ~-~-> 00:21:21,840
1715 listen. If you look at these individual
1716
1717 430
1718 00:21:21,840 ~-~-> 00:21:24,510
1719 days, the vertical lines delineate those
1720
1721 431
1722 00:21:25,440 ~-~-> 00:21:27,930
1723 separations between the beginning and
1724
1725 432
1726 00:21:27,960 ~-~-> 00:21:29,730
1727 new day and the end of the day and
1728
1729 433
1730 00:21:29,730 ~-~-> 00:21:33,120
1731 starting another. When you look at price
1732
1733 434
1734 00:21:33,120 ~-~-> 00:21:37,290
1735 like this, it creates a grid. Now, the
1736
1737 435
1738 00:21:37,290 ~-~-> 00:21:40,920
1739 algorithm is going to look for sell side
1740
1741 436
1742 00:21:40,920 ~-~-> 00:21:43,380
1743 liquidity below old lows and buy side
1744
1745 437
1746 00:21:43,380 ~-~-> 00:21:46,800
1747 liquidity above old highs. What you want
1748
1749 438
1750 00:21:46,800 ~-~-> 00:21:49,290
1751 to be focusing on on is the times when
1752
1753 439
1754 00:21:49,290 ~-~-> 00:21:51,780
1755 the market will change its delivery
1756
1757 440
1758 00:21:51,780 ~-~-> 00:21:54,030
1759 state from bearish to bullish, how does
1760
1761 441
1762 00:21:54,030 ~-~-> 00:21:57,450
1763 that happen? The algorithm defines it by
1764
1765 442
1766 00:21:57,660 ~-~-> 00:22:00,690
1767 what I shown you here. If it goes below
1768
1769 443
1770 00:22:00,690 ~-~-> 00:22:03,120
1771 an old low and goes back above it, you
1772
1773 444
1774 00:22:03,120 ~-~-> 00:22:05,910
1775 have to see it trade back above an old
1776
1777 445
1778 00:22:05,910 ~-~-> 00:22:09,360
1779 high. Once that happens, the algorithm
1780
1781 446
1782 00:22:09,360 ~-~-> 00:22:11,460
1783 will change its delivery state, and then
1784
1785 447
1786 00:22:11,460 ~-~-> 00:22:15,690
1787 it will now seek the opposing liquidity.
1788
1789 448
1790 00:22:15,870 ~-~-> 00:22:17,040
1791 In other words, if it just recently
1792
1793 449
1794 00:22:17,070 ~-~-> 00:22:20,610
1795 taken Southside liquidity out, it's
1796
1797 450
1798 00:22:20,610 ~-~-> 00:22:22,560
1799 going to be looking for a form of bias
1800
1801 451
1802 00:22:22,560 ~-~-> 00:22:24,450
1803 or liquidity. Because that's what the
1804
1805 452
1806 00:22:24,450 ~-~-> 00:22:27,150
1807 algorithms doing. It's not able to see
1808
1809 453
1810 00:22:27,150 ~-~-> 00:22:29,370
1811 your particular stop, you're going to
1812
1813 454
1814 00:22:29,370 ~-~-> 00:22:31,230
1815 feel like it does. And you're going to
1816
1817 455
1818 00:22:31,230 ~-~-> 00:22:33,270
1819 spend time on the internet telling
1820
1821 456
1822 00:22:33,270 ~-~-> 00:22:35,700
1823 people preaching to people that it is
1824
1825 457
1826 00:22:35,730 ~-~-> 00:22:38,100
1827 seeking your stop and everyone else has
1828
1829 458
1830 00:22:38,100 ~-~-> 00:22:39,150
1831 stopped because it can see that
1832
1833 459
1834 00:22:39,150 ~-~-> 00:22:42,390
1835 particular stop. It can't. The market
1836
1837 460
1838 00:22:42,390 ~-~-> 00:22:45,780
1839 cannot see your individual stop, the
1840
1841 461
1842 00:22:45,780 ~-~-> 00:22:49,890
1843 broker can. But the algorithm that
1844
1845 462
1846 00:22:49,890 ~-~-> 00:22:53,280
1847 delivers price doesn't see it. So we
1848
1849 463
1850 00:22:53,280 ~-~-> 00:22:55,110
1851 might be arguing semantics here, but the
1852
1853 464
1854 00:22:55,110 ~-~-> 00:22:58,410
1855 point is this. The algorithm understands
1856
1857 465
1858 00:22:58,410 ~-~-> 00:23:00,780
1859 where that liquidity is. It's going to
1860
1861 466
1862 00:23:00,780 ~-~-> 00:23:03,390
1863 trade to that, because it's offering
1864
1865 467
1866 00:23:03,660 ~-~-> 00:23:07,560
1867 smart money. high level, central bank
1868
1869 468
1870 00:23:07,560 ~-~-> 00:23:11,970
1871 level, not mom and pop not UBS. And
1872
1873 469
1874 00:23:11,970 ~-~-> 00:23:16,170
1875 Credit Suisse, not Citi. Those traders
1876
1877 470
1878 00:23:16,290 ~-~-> 00:23:18,930
1879 know Goldman Sachs. None of those people
1880
1881 471
1882 00:23:19,680 ~-~-> 00:23:21,660
1883 are who I'm referring to. There are it's
1884
1885 472
1886 00:23:21,660 ~-~-> 00:23:23,100
1887 above that they're wrong on the
1888
1889 473
1890 00:23:23,130 ~-~-> 00:23:25,800
1891 corporate ladder for institutional
1892
1893 474
1894 00:23:25,800 ~-~-> 00:23:27,930
1895 trading is much lower than what I'm
1896
1897 475
1898 00:23:27,930 ~-~-> 00:23:31,620
1899 referring to. When the market changes,
1900
1901 476
1902 00:23:31,620 ~-~-> 00:23:34,740
1903 its stated delivery. You need to be
1904
1905 477
1906 00:23:34,740 ~-~-> 00:23:38,370
1907 focusing in on how it will seek that
1908
1909 478
1910 00:23:38,400 ~-~-> 00:23:41,100
1911 next level of liquidity. We've taken
1912
1913 479
1914 00:23:41,100 ~-~-> 00:23:44,100
1915 sales liquidity out great. Wait for a
1916
1917 480
1918 00:23:44,400 ~-~-> 00:23:47,940
1919 old high to be broken. That's these blue
1920
1921 481
1922 00:23:47,940 ~-~-> 00:23:50,100
1923 lines. So if it suites below a red line
1924
1925 482
1926 00:23:50,160 ~-~-> 00:23:52,170
1927 and goes back above the red line, okay,
1928
1929 483
1930 00:23:52,200 ~-~-> 00:23:53,850
1931 it's a stock run. But is it a buy
1932
1933 484
1934 00:23:53,850 ~-~-> 00:23:56,370
1935 because of that? No. You have to wait
1936
1937 485
1938 00:23:56,370 ~-~-> 00:23:59,640
1939 for it to take out a blue line. Now
1940
1941 486
1942 00:24:00,660 ~-~-> 00:24:03,540
1943 Don't get so wrapped up in the fact that
1944
1945 487
1946 00:24:03,810 ~-~-> 00:24:05,280
1947 we have red lines and blue lines,
1948
1949 488
1950 00:24:05,310 ~-~-> 00:24:06,900
1951 because you're going to look at this and
1952
1953 489
1954 00:24:06,900 ~-~-> 00:24:12,180
1955 say, which lines do I use? It's going to
1956
1957 490
1958 00:24:12,180 ~-~-> 00:24:15,450
1959 be whatever line is appropriate at the
1960
1961 491
1962 00:24:15,450 ~-~-> 00:24:18,630
1963 moment. For instance, if you're looking
1964
1965 492
1966 00:24:18,630 ~-~-> 00:24:23,100
1967 at this low here, we've ran below this
1968
1969 493
1970 00:24:23,220 ~-~-> 00:24:26,970
1971 low here, we ran below it. We went back
1972
1973 494
1974 00:24:26,970 ~-~-> 00:24:29,280
1975 above the red line here. Until we get
1976
1977 495
1978 00:24:29,310 ~-~-> 00:24:33,360
1979 above this blue line here. We will not
1980
1981 496
1982 00:24:33,360 ~-~-> 00:24:37,020
1983 have any reason to be a buyer. Because
1984
1985 497
1986 00:24:37,020 ~-~-> 00:24:39,990
1987 it has to trade back above an old high,
1988
1989 498
1990 00:24:40,710 ~-~-> 00:24:45,540
1991 which is a blue line. By itself, it just
1992
1993 499
1994 00:24:45,540 ~-~-> 00:24:47,460
1995 gives you the stage in which the
1996
1997 500
1998 00:24:47,550 ~-~-> 00:24:50,100
1999 delivery state at the algorithm, it
2000
2001 501
2002 00:24:50,100 ~-~-> 00:24:53,640
2003 won't want to move higher. It won't send
2004
2005 502
2006 00:24:53,640 ~-~-> 00:24:55,110
2007 the displacement in the marketplace
2008
2009 503
2010 00:24:55,110 ~-~-> 00:24:57,330
2011 higher until it does this. This is like
2012
2013 504
2014 00:24:57,330 ~-~-> 00:24:59,430
2015 the first stage that you're waiting for.
2016
2017 505
2018 00:25:00,330 ~-~-> 00:25:01,500
2019 Once you get this,
2020
2021 506
2022 00:25:01,619 ~-~-> 00:25:03,059
2023 then you can go in and start looking for
2024
2025 507
2026 00:25:03,059 ~-~-> 00:25:05,789
2027 more specific criteria to look for
2028
2029 508
2030 00:25:05,789 ~-~-> 00:25:07,919
2031 setups. It's, again, it's not an
2032
2033 509
2034 00:25:07,949 ~-~-> 00:25:10,859
2035 everyday thing, but this is going to
2036
2037 510
2038 00:25:10,859 ~-~-> 00:25:14,129
2039 give you the choices setups. This is the
2040
2041 511
2042 00:25:14,129 ~-~-> 00:25:17,459
2043 one that will give you the ideal setups
2044
2045 512
2046 00:25:17,459 ~-~-> 00:25:23,249
2047 for that particular week. Yes, that
2048
2049 513
2050 00:25:23,249 ~-~-> 00:25:26,009
2051 particular setup that week.
2052
2053 514
2054 00:25:33,960 ~-~-> 00:25:36,240
2055 All right, session highs and lows, the
2056
2057 515
2058 00:25:36,240 ~-~-> 00:25:39,900
2059 importance of these times of day in
2060
2061 516
2062 00:25:40,050 ~-~-> 00:25:42,060
2063 concert with what I've already outlined.
2064
2065 517
2066 00:25:43,140 ~-~-> 00:25:45,270
2067 If we know that the market has changed
2068
2069 518
2070 00:25:45,270 ~-~-> 00:25:47,760
2071 its delivery state. In other words, the
2072
2073 519
2074 00:25:47,760 ~-~-> 00:25:50,010
2075 algorithm has already taken salsa
2076
2077 520
2078 00:25:50,010 ~-~-> 00:25:52,740
2079 liquidity out the market will likely
2080
2081 521
2082 00:25:52,740 ~-~-> 00:25:55,500
2083 want to go higher and reach for by side
2084
2085 522
2086 00:25:55,500 ~-~-> 00:26:01,140
2087 liquidity. We can see that occurring In
2088
2089 523
2090 00:26:01,140 ~-~-> 00:26:06,690
2091 here, so we have an old low market
2092
2093 524
2094 00:26:06,690 ~-~-> 00:26:08,910
2095 trades down below that it trades back
2096
2097 525
2098 00:26:08,910 ~-~-> 00:26:11,400
2099 above the red line. But at all this time
2100
2101 526
2102 00:26:11,400 ~-~-> 00:26:13,020
2103 here right in here does it trade above
2104
2105 527
2106 00:26:13,020 ~-~-> 00:26:15,300
2107 that next blue line up here, which is an
2108
2109 528
2110 00:26:15,300 ~-~-> 00:26:19,560
2111 old high. No, hasn't done that yet. It
2112
2113 529
2114 00:26:19,560 ~-~-> 00:26:23,460
2115 does it here. It runs through. Now once
2116
2117 530
2118 00:26:23,460 ~-~-> 00:26:27,360
2119 it does that, your eye needs to go back
2120
2121 531
2122 00:26:27,360 ~-~-> 00:26:29,310
2123 to where it started from, which is down
2124
2125 532
2126 00:26:29,310 ~-~-> 00:26:33,660
2127 here. So this run here is an impulse
2128
2129 533
2130 00:26:33,660 ~-~-> 00:26:37,530
2131 leg. You're going to anticipate a
2132
2133 534
2134 00:26:37,530 ~-~-> 00:26:39,720
2135 retracement and it's going to retrace
2136
2137 535
2138 00:26:39,720 ~-~-> 00:26:43,440
2139 back down. You do not think it's going
2140
2141 536
2142 00:26:43,440 ~-~-> 00:26:44,790
2143 to go back below that low because it's
2144
2145 537
2146 00:26:44,790 ~-~-> 00:26:46,860
2147 already left the redline it's already
2148
2149 538
2150 00:26:46,860 ~-~-> 00:26:49,200
2151 done its job over here. It's swept old
2152
2153 539
2154 00:26:49,200 ~-~-> 00:26:52,920
2155 liquidity. Now we went above it. It's in
2156
2157 540
2158 00:26:52,920 ~-~-> 00:26:56,340
2159 a consolidation. This run here is what
2160
2161 541
2162 00:26:56,340 ~-~-> 00:26:59,760
2163 you wait for. Then you start waiting for
2164
2165 542
2166 00:26:59,760 ~-~-> 00:27:02,880
2167 time. time of day, time of day is the
2168
2169 543
2170 00:27:02,880 ~-~-> 00:27:04,440
2171 London session between two o'clock and
2172
2173 544
2174 00:27:04,440 ~-~-> 00:27:05,520
2175 five o'clock in the morning Eastern
2176
2177 545
2178 00:27:05,520 ~-~-> 00:27:08,190
2179 Standard Time. In New York session
2180
2181 546
2182 00:27:08,190 ~-~-> 00:27:09,510
2183 between seven o'clock in the morning to
2184
2185 547
2186 00:27:09,510 ~-~-> 00:27:13,080
2187 9am. Eastern Standard Time. On this
2188
2189 548
2190 00:27:13,080 ~-~-> 00:27:15,780
2191 chart, there's a green level indicating
2192
2193 549
2194 00:27:15,780 ~-~-> 00:27:16,830
2195 two o'clock to five o'clock in the
2196
2197 550
2198 00:27:16,830 ~-~-> 00:27:19,020
2199 morning. And then seven o'clock to nine
2200
2201 551
2202 00:27:19,020 ~-~-> 00:27:20,130
2203 o'clock in the morning is a little red
2204
2205 552
2206 00:27:20,130 ~-~-> 00:27:23,220
2207 line. All the little markers to show you
2208
2209 553
2210 00:27:23,430 ~-~-> 00:27:28,380
2211 what this looks like. When the market
2212
2213 554
2214 00:27:28,380 ~-~-> 00:27:32,640
2215 trades down into the impulse leg, you're
2216
2217 555
2218 00:27:32,640 ~-~-> 00:27:36,000
2219 going to feel nervous when you start
2220
2221 556
2222 00:27:36,000 ~-~-> 00:27:38,640
2223 trading like this, but you will quickly
2224
2225 557
2226 00:27:38,640 ~-~-> 00:27:42,330
2227 see how nice it is to trade with these
2228
2229 558
2230 00:27:42,330 ~-~-> 00:27:45,210
2231 movements. When the market drops down
2232
2233 559
2234 00:27:45,210 ~-~-> 00:27:47,580
2235 below the blue line, we don't think of
2236
2237 560
2238 00:27:47,580 ~-~-> 00:27:50,670
2239 that as a false run here and break down
2240
2241 561
2242 00:27:51,090 ~-~-> 00:27:53,340
2243 because the state of deliveries changed
2244
2245 562
2246 00:27:53,340 ~-~-> 00:27:54,810
2247 over here it's taken out so some
2248
2249 563
2250 00:27:54,810 ~-~-> 00:27:57,300
2251 liquidity. It's consolidated and then it
2252
2253 564
2254 00:27:57,300 ~-~-> 00:27:59,430
2255 showed a tan here. So the impulse leg is
2256
2257 565
2258 00:27:59,790 ~-~-> 00:28:00,960
2259 the willingness that it wants to go
2260
2261 566
2262 00:28:00,960 ~-~-> 00:28:03,810
2263 higher, then you wait for it to drop
2264
2265 567
2266 00:28:03,810 ~-~-> 00:28:07,470
2267 down into below the fourth difference
2268
2269 568
2270 00:28:07,470 ~-~-> 00:28:08,700
2271 between two o'clock and five o'clock in
2272
2273 569
2274 00:28:08,700 ~-~-> 00:28:10,920
2275 the morning, Eastern Standard Time. And
2276
2277 570
2278 00:28:10,920 ~-~-> 00:28:14,430
2279 then the ideal scenario is to wait for
2280
2281 571
2282 00:28:14,430 ~-~-> 00:28:16,650
2283 it to create an impulse leg there. Now,
2284
2285 572
2286 00:28:17,040 ~-~-> 00:28:20,010
2287 you can trade that. But I'm telling you,
2288
2289 573
2290 00:28:20,190 ~-~-> 00:28:22,080
2291 you're going to have at least three and
2292
2293 574
2294 00:28:22,080 ~-~-> 00:28:25,260
2295 a half years of hit and miss hit and
2296
2297 575
2298 00:28:25,260 ~-~-> 00:28:27,420
2299 miss hit and miss because London has a
2300
2301 576
2302 00:28:27,420 ~-~-> 00:28:30,570
2303 lot of roles to it. So you want to focus
2304
2305 577
2306 00:28:30,570 ~-~-> 00:28:32,340
2307 right away, just trading in New York
2308
2309 578
2310 00:28:32,340 ~-~-> 00:28:34,380
2311 session, it's going to be the easiest
2312
2313 579
2314 00:28:34,380 ~-~-> 00:28:36,660
2315 one. And later in the future, you're
2316
2317 580
2318 00:28:36,660 ~-~-> 00:28:37,680
2319 going to find that you're actually going
2320
2321 581
2322 00:28:37,680 ~-~-> 00:28:39,240
2323 to be teaching everyone around the world
2324
2325 582
2326 00:28:39,480 ~-~-> 00:28:40,650
2327 that this is the session they should be
2328
2329 583
2330 00:28:40,650 ~-~-> 00:28:45,060
2331 starting with as a new trader. This low
2332
2333 584
2334 00:28:45,180 ~-~-> 00:28:47,790
2335 to this high, that's your London
2336
2337 585
2338 00:28:47,790 ~-~-> 00:28:50,010
2339 impulse, and then it retraces back down
2340
2341 586
2342 00:28:50,010 ~-~-> 00:28:51,810
2343 into seven o'clock in the morning to
2344
2345 587
2346 00:28:51,810 ~-~-> 00:28:52,950
2347 nine o'clock in the morning. It's going
2348
2349 588
2350 00:28:52,950 ~-~-> 00:28:56,670
2351 to create a low there. This is what you
2352
2353 589
2354 00:28:56,670 ~-~-> 00:28:58,920
2355 are going to teach the entire world as
2356
2357 590
2358 00:28:58,920 ~-~-> 00:29:02,130
2359 optimal trade entry. We call it today,
2360
2361 591
2362 00:29:02,250 ~-~-> 00:29:06,000
2363 OT E. This is the setup for the week.
2364
2365 592
2366 00:29:06,030 ~-~-> 00:29:08,250
2367 That's ideal. It's easy. And that's the
2368
2369 593
2370 00:29:08,250 ~-~-> 00:29:10,680
2371 one you wait for much in the same way,
2372
2373 594
2374 00:29:10,770 ~-~-> 00:29:12,330
2375 the previous week on that Wednesday.
2376
2377 595
2378 00:29:12,750 ~-~-> 00:29:14,670
2379 Same thing here, it trades back down.
2380
2381 596
2382 00:29:15,690 ~-~-> 00:29:17,940
2383 impulse leg, retraces back into the New
2384
2385 597
2386 00:29:17,940 ~-~-> 00:29:20,220
2387 York session. This is the OTP or optimal
2388
2389 598
2390 00:29:20,220 ~-~-> 00:29:22,260
2391 trade entry, and price runs aggressively
2392
2393 599
2394 00:29:22,260 ~-~-> 00:29:26,790
2395 higher. So when you see how the time of
2396
2397 600
2398 00:29:26,790 ~-~-> 00:29:31,200
2399 day, day of week, and the changing in
2400
2401 601
2402 00:29:31,200 ~-~-> 00:29:33,270
2403 the state of delivery for price after it
2404
2405 602
2406 00:29:33,270 ~-~-> 00:29:35,760
2407 runs below a key level of self
2408
2409 603
2410 00:29:35,790 ~-~-> 00:29:39,330
2411 liquidity, you wait for a specific
2412
2413 604
2414 00:29:39,450 ~-~-> 00:29:42,270
2415 signature in price. When it takes out
2416
2417 605
2418 00:29:42,270 ~-~-> 00:29:44,100
2419 Southside liquidity and starts to rally
2420
2421 606
2422 00:29:44,100 ~-~-> 00:29:47,700
2423 it has to break an old high. Otherwise
2424
2425 607
2426 00:29:47,730 ~-~-> 00:29:49,410
2427 it's going to remain in consolidation.
2428
2429 608
2430 00:29:50,430 ~-~-> 00:29:52,470
2431 You're going to struggle and beat
2432
2433 609
2434 00:29:52,470 ~-~-> 00:29:54,450
2435 yourself up trading in consolidations
2436
2437 610
2438 00:29:54,480 ~-~-> 00:29:57,480
2439 not knowing this. So I'm trying to teach
2440
2441 611
2442 00:29:57,480 ~-~-> 00:29:59,730
2443 you now Michael, how to avoid all that
2444
2445 612
2446 00:29:59,730 ~-~-> 00:30:03,450
2447 pain. How to know what to look for. This
2448
2449 613
2450 00:30:03,450 ~-~-> 00:30:04,500
2451 is what you're supposed to be looking
2452
2453 614
2454 00:30:04,500 ~-~-> 00:30:07,500
2455 for. Everything in this example for the
2456
2457 615
2458 00:30:07,500 ~-~-> 00:30:10,440
2459 British Pound can be done on a stock, it
2460
2461 616
2462 00:30:10,440 ~-~-> 00:30:12,780
2463 can be done on a futures market. It can
2464
2465 617
2466 00:30:12,780 ~-~-> 00:30:15,690
2467 be done on any other foreign exchange
2468
2469 618
2470 00:30:15,690 ~-~-> 00:30:22,590
2471 pair. It's universal. I didn't pick any
2472
2473 619
2474 00:30:22,590 ~-~-> 00:30:26,910
2475 specific form fitted highs and lows. I
2476
2477 620
2478 00:30:26,910 ~-~-> 00:30:28,770
2479 went through a series of just the time
2480
2481 621
2482 00:30:28,770 ~-~-> 00:30:31,380
2483 that was shown in these charts. I put
2484
2485 622
2486 00:30:31,380 ~-~-> 00:30:34,350
2487 the highs and the lows on and that's it.
2488
2489 623
2490 00:30:35,100 ~-~-> 00:30:37,830
2491 And I'm showing you how you're going to
2492
2493 624
2494 00:30:37,830 ~-~-> 00:30:41,310
2495 pick that one shot one kill every single
2496
2497 625
2498 00:30:41,310 ~-~-> 00:30:45,540
2499 week. That one shot one kill setup that
2500
2501 626
2502 00:30:45,540 ~-~-> 00:30:47,880
2503 you're waiting for. That the entire
2504
2505 627
2506 00:30:47,880 ~-~-> 00:30:51,270
2507 world always wonders how does ICT know
2508
2509 628
2510 00:30:51,270 ~-~-> 00:30:53,070
2511 that one particular setup what's going
2512
2513 629
2514 00:30:53,070 ~-~-> 00:30:56,070
2515 to happen that week. And they're all
2516
2517 630
2518 00:30:56,070 ~-~-> 00:30:57,240
2519 going to clamor and they're going to
2520
2521 631
2522 00:30:57,240 ~-~-> 00:31:00,300
2523 email you hundreds a day. We're going to
2524
2525 632
2526 00:31:00,300 ~-~-> 00:31:03,210
2527 come to you asking, please show me how
2528
2529 633
2530 00:31:03,210 ~-~-> 00:31:05,910
2531 to do this one shot one kill. And I'm
2532
2533 634
2534 00:31:05,910 ~-~-> 00:31:07,500
2535 time traveling and telling you right now
2536
2537 635
2538 00:31:07,500 ~-~-> 00:31:09,240
2539 Michael, this is how it's done. I'll be
2540
2541 636
2542 00:31:09,240 ~-~-> 00:31:11,460
2543 back next Saturday, talk to you. Until
2544
2545 637
2546 00:31:11,460 ~-~-> 00:31:12,720
2547 then, keep studying