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Last modified by Drunk Monkey on 2021-05-25 08:40
From version 2.1
edited by Drunk Monkey
on 2020-11-20 11:22
Change comment: There is no comment for this version
To version 1.1
edited by Drunk Monkey
on 2020-11-20 11:20
Change comment: There is no comment for this version

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1 -1
2 -00:00:10,559 ~-~-> 00:00:12,209
3 -ICT: Okay, folks, welcome back. This is
4 -
5 -2
6 -00:00:12,209 ~-~-> 00:00:14,249
7 -part three of a continuing series of
8 -
9 -3
10 -00:00:14,249 ~-~-> 00:00:16,979
11 -four videos. If I could go back and tell
12 -
13 -4
14 -00:00:16,979 ~-~-> 00:00:19,229
15 -myself what I know now, again, this is a
16 -
17 -5
18 -00:00:19,229 ~-~-> 00:00:20,729
19 -hypothetical conversation with my
20 -
21 -6
22 -00:00:20,729 ~-~-> 00:00:24,659
23 -younger self. Purely fiction. Just to
24 -
25 -7
26 -00:00:24,659 ~-~-> 00:00:27,029
27 -give you a perspective on if I tell
28 -
29 -8
30 -00:00:27,029 ~-~-> 00:00:29,669
31 -myself what to focus on, when I first
32 -
33 -9
34 -00:00:29,669 ~-~-> 00:00:33,989
35 -started, it would hopefully have avoided
36 -
37 -10
38 -00:00:34,019 ~-~-> 00:00:37,229
39 -majority of the painful lessons and
40 -
41 -11
42 -00:00:37,229 ~-~-> 00:00:45,629
43 -losses I had to incur How would I
44 -
45 -12
46 -00:00:45,629 ~-~-> 00:00:49,319
47 -practice? Where do you back test daily
48 -
49 -13
50 -00:00:49,319 ~-~-> 00:00:52,319
51 -setups? And I'll before I get into this,
52 -
53 -14
54 -00:00:52,499 ~-~-> 00:00:56,819
55 -this whole series is really linked to
56 -
57 -15
58 -00:00:56,819 ~-~-> 00:00:58,319
59 -the optimal trade entry pattern that
60 -
61 -16
62 -00:00:58,319 ~-~-> 00:00:59,999
63 -I've that I've made public on my YouTube
64 -
65 -17
66 -00:01:00,029 ~-~-> 00:01:04,019
67 -Channel, I've also included 20 videos of
68 -
69 -18
70 -00:01:04,019 ~-~-> 00:01:05,909
71 -daily setups. So that way kind of gives
72 -
73 -19
74 -00:01:05,909 ~-~-> 00:01:08,189
75 -you familiarity to what this pattern
76 -
77 -20
78 -00:01:08,189 ~-~-> 00:01:11,159
79 -looks like across a wide array of
80 -
81 -21
82 -00:01:11,159 ~-~-> 00:01:12,839
83 -different asset classes. But I'm
84 -
85 -22
86 -00:01:12,839 ~-~-> 00:01:15,989
87 -covering a simplistic approach to how
88 -
89 -23
90 -00:01:16,019 ~-~-> 00:01:19,289
91 -you should be practicing. First and
92 -
93 -24
94 -00:01:19,289 ~-~-> 00:01:21,959
95 -foremost, everyone knows, broker demo
96 -
97 -25
98 -00:01:21,959 ~-~-> 00:01:24,959
99 -platforms. Okay, so whenever you open up
100 -
101 -26
102 -00:01:24,959 ~-~-> 00:01:28,199
103 -an account with a broker, generally they
104 -
105 -27
106 -00:01:28,199 ~-~-> 00:01:31,019
107 -offer you a trial version of their
108 -
109 -28
110 -00:01:31,019 ~-~-> 00:01:33,659
111 -platform. So you can test your
112 -
113 -29
114 -00:01:33,869 ~-~-> 00:01:35,909
115 -strategies or whatever it is that you're
116 -
117 -30
118 -00:01:36,149 ~-~-> 00:01:37,619
119 -utilizing for your framework for your
120 -
121 -31
122 -00:01:37,619 ~-~-> 00:01:40,799
123 -setups. You can test drive it on a demo
124 -
125 -32
126 -00:01:40,799 ~-~-> 00:01:45,989
127 -account. forex has the ability to offer
128 -
129 -33
130 -00:01:46,019 ~-~-> 00:01:48,479
131 -demo accounts that for some brokers
132 -
133 -34
134 -00:01:48,479 ~-~-> 00:01:52,169
135 -don't expire. And it's not a big deal.
136 -
137 -35
138 -00:01:52,169 ~-~-> 00:01:54,089
139 -If it does expire. He just started
140 -
141 -36
142 -00:01:54,089 ~-~-> 00:01:57,329
143 -another one. But you don't want to treat
144 -
145 -37
146 -00:01:57,389 ~-~-> 00:01:59,969
147 -the demo account like Monopoly money.
148 -
149 -38
150 -00:01:59,999 ~-~-> 00:02:02,609
151 -You want to sit down with it and say,
152 -
153 -39
154 -00:02:02,609 ~-~-> 00:02:05,459
155 -Okay, how much of this hypothetical
156 -
157 -40
158 -00:02:05,729 ~-~-> 00:02:08,069
159 -pretend money would I be utilizing, if I
160 -
161 -41
162 -00:02:08,069 ~-~-> 00:02:10,289
163 -was trading, it wouldn't have been
164 -
165 -42
166 -00:02:10,289 ~-~-> 00:02:14,969
167 -$50,000 to start with, and working with
168 -
169 -43
170 -00:02:14,969 ~-~-> 00:02:17,849
171 -a demo with a sober mind about what
172 -
173 -44
174 -00:02:17,849 ~-~-> 00:02:20,249
175 -you're doing, and building good habits
176 -
177 -45
178 -00:02:20,279 ~-~-> 00:02:23,759
179 -and removing the opportunity to fall
180 -
181 -46
182 -00:02:23,759 ~-~-> 00:02:26,639
183 -into bad habits. That means overtrading
184 -
185 -47
186 -00:02:26,969 ~-~-> 00:02:28,739
187 -looking for setups even after you've
188 -
189 -48
190 -00:02:28,739 ~-~-> 00:02:31,109
191 -made a correct decision, and the market
192 -
193 -49
194 -00:02:31,109 ~-~-> 00:02:33,119
195 -shows you that you would have been
196 -
197 -50
198 -00:02:33,119 ~-~-> 00:02:35,639
199 -profitable. It's not an invitation to go
200 -
201 -51
202 -00:02:35,639 ~-~-> 00:02:37,829
203 -right back in the same day, to try to
204 -
205 -52
206 -00:02:37,829 ~-~-> 00:02:39,599
207 -get something else because it felt good.
208 -
209 -53
210 -00:02:40,439 ~-~-> 00:02:41,999
211 -You're going to fall victim to that
212 -
213 -54
214 -00:02:41,999 ~-~-> 00:02:46,139
215 -early on. So to avoid all that, don't
216 -
217 -55
218 -00:02:46,529 ~-~-> 00:02:48,179
219 -have it in your mindset. You have to
220 -
221 -56
222 -00:02:48,179 ~-~-> 00:02:49,499
223 -take a lot of trades every single day.
224 -
225 -57
226 -00:02:50,159 ~-~-> 00:02:51,779
227 -You're gonna lose a lot of money. You
228 -
229 -58
230 -00:02:51,779 ~-~-> 00:02:53,249
231 -don't know it yet, but you're going to
232 -
233 -59
234 -00:02:53,249 ~-~-> 00:02:55,379
235 -lose a lot of money, trying to do that.
236 -
237 -60
238 -00:02:57,839 ~-~-> 00:03:00,809
239 -And third party apps like for tester and
240 -
241 -61
242 -00:03:00,809 ~-~-> 00:03:03,659
243 -you can go to forex tester calm. And
244 -
245 -62
246 -00:03:03,749 ~-~-> 00:03:06,629
247 -they have a medium where you can go back
248 -
249 -63
250 -00:03:06,629 ~-~-> 00:03:11,489
251 -and back test strategies and such. And
252 -
253 -64
254 -00:03:11,489 ~-~-> 00:03:14,489
255 -finally trading view calm today, which
256 -
257 -65
258 -00:03:14,489 ~-~-> 00:03:16,679
259 -doesn't exist at the time of you coming
260 -
261 -66
262 -00:03:16,679 ~-~-> 00:03:19,589
263 -up now Michael, the tradingview.com
264 -
265 -67
266 -00:03:19,589 ~-~-> 00:03:22,889
267 -website offers pretty much everything
268 -
269 -68
270 -00:03:23,489 ~-~-> 00:03:27,089
271 -that was available when you started,
272 -
273 -69
274 -00:03:28,079 ~-~-> 00:03:32,339
275 -meta stock, super charts TradeStation
276 -
277 -70
278 -00:03:32,879 ~-~-> 00:03:35,699
279 -all those things and bells and whistles
280 -
281 -71
282 -00:03:35,729 ~-~-> 00:03:39,029
283 -that you're liking right now aren't
284 -
285 -72
286 -00:03:39,029 ~-~-> 00:03:41,249
287 -really that important. You're going to
288 -
289 -73
290 -00:03:41,249 ~-~-> 00:03:43,319
291 -focus primarily on the open the high,
292 -
293 -74
294 -00:03:43,319 ~-~-> 00:03:45,989
295 -the low and the close. It doesn't feel
296 -
297 -75
298 -00:03:45,989 ~-~-> 00:03:47,369
299 -like that that's where you're going to
300 -
301 -76
302 -00:03:47,369 ~-~-> 00:03:50,579
303 -be heading. But eventually, you're going
304 -
305 -77
306 -00:03:50,579 ~-~-> 00:03:52,109
307 -to strip all the indicators off your
308 -
309 -78
310 -00:03:52,109 ~-~-> 00:03:53,819
311 -chart, Michael, and you're not even
312 -
313 -79
314 -00:03:53,819 ~-~-> 00:03:56,489
315 -going to consider any of it. It doesn't
316 -
317 -80
318 -00:03:56,489 ~-~-> 00:03:58,379
319 -make sense to you right now, but trust
320 -
321 -81
322 -00:03:58,379 ~-~-> 00:04:01,979
323 -me everything becomes clear by not
324 -
325 -82
326 -00:04:01,979 ~-~-> 00:04:04,169
327 -having anything on your charts. You
328 -
329 -83
330 -00:04:04,169 ~-~-> 00:04:06,029
331 -don't have to have any overlays of your
332 -
333 -84
334 -00:04:06,779 ~-~-> 00:04:09,299
335 -platform indicators you'd like
336 -
337 -85
338 -00:04:10,049 ~-~-> 00:04:12,869
339 -stochastic right now, it's not going to
340 -
341 -86
342 -00:04:12,869 ~-~-> 00:04:15,809
343 -ever appear on your chart anymore. You
344 -
345 -87
346 -00:04:15,809 ~-~-> 00:04:18,269
347 -like MACD, it's never going to appear on
348 -
349 -88
350 -00:04:18,269 ~-~-> 00:04:21,029
351 -your chart anymore. Michael. You want to
352 -
353 -89
354 -00:04:21,029 ~-~-> 00:04:24,239
355 -strip the chart down and focus on the
356 -
357 -90
358 -00:04:24,239 ~-~-> 00:04:26,429
359 -four price levels that is the most
360 -
361 -91
362 -00:04:26,429 ~-~-> 00:04:28,529
363 -paramount. It's the open the high, the
364 -
365 -92
366 -00:04:28,529 ~-~-> 00:04:30,839
367 -low and the close and looking at
368 -
369 -93
370 -00:04:30,839 ~-~-> 00:04:34,199
371 -different intervals. The previous day's
372 -
373 -94
374 -00:04:34,199 ~-~-> 00:04:36,089
375 -highs and lows, previous week's highs
376 -
377 -95
378 -00:04:36,089 ~-~-> 00:04:37,649
379 -and lows in previous months highs and
380 -
381 -96
382 -00:04:37,649 ~-~-> 00:04:41,669
383 -lows will offer a plethora of setups. It
384 -
385 -97
386 -00:04:41,669 ~-~-> 00:04:43,469
387 -doesn't feel like that makes sense to
388 -
389 -98
390 -00:04:43,469 ~-~-> 00:04:45,719
391 -you right now. But it will absolutely
392 -
393 -99
394 -00:04:45,719 ~-~-> 00:04:47,579
395 -unlock all of the understanding that
396 -
397 -100
398 -00:04:47,579 ~-~-> 00:04:49,889
399 -you'll need to carve out consistent
400 -
401 -101
402 -00:04:49,889 ~-~-> 00:04:52,769
403 -steady setups. So let's go into trading
404 -
405 -102
406 -00:04:52,769 ~-~-> 00:04:54,899
407 -view and look at how we can practice.
408 -
409 -103
410 -00:04:55,199 ~-~-> 00:04:57,179
411 -Alright, so here is the trading view
412 -
413 -104
414 -00:04:57,179 ~-~-> 00:05:00,539
415 -platform and I have the charts up With
416 -
417 -105
418 -00:05:00,569 ~-~-> 00:05:03,059
419 -the euro dollar currency pair, on the
420 -
421 -106
422 -00:05:03,059 ~-~-> 00:05:05,549
423 -left hand side, it is a 15 minute time
424 -
425 -107
426 -00:05:05,549 ~-~-> 00:05:07,409
427 -frame. And on the right hand side, it's
428 -
429 -108
430 -00:05:07,409 ~-~-> 00:05:10,739
431 -a daily chart. And the assumption is
432 -
433 -109
434 -00:05:11,010 ~-~-> 00:05:13,110
435 -that we're focusing on the optimal trade
436 -
437 -110
438 -00:05:13,110 ~-~-> 00:05:15,570
439 -entry on a higher time frame until it
440 -
441 -111
442 -00:05:15,570 ~-~-> 00:05:20,070
443 -delivers to a key level. I'm going to
444 -
445 -112
446 -00:05:20,070 ~-~-> 00:05:21,450
447 -show you right now what that would look
448 -
449 -113
450 -00:05:21,450 ~-~-> 00:05:24,330
451 -like. Here we have a high that would be
452 -
453 -114
454 -00:05:24,330 ~-~-> 00:05:28,110
455 -targeted. In here, as the price was
456 -
457 -115
458 -00:05:28,110 ~-~-> 00:05:30,510
459 -rallying up, we can see before we got to
460 -
461 -116
462 -00:05:30,510 ~-~-> 00:05:34,920
463 -this high back testing these types of
464 -
465 -117
466 -00:05:34,980 ~-~-> 00:05:38,250
467 -setups is what you'd be doing. We're
468 -
469 -118
470 -00:05:38,250 ~-~-> 00:05:44,070
471 -going to show a Fibonacci on this swing
472 -
473 -119
474 -00:05:44,070 ~-~-> 00:05:47,340
475 -low. With this candles higher low and
476 -
477 -120
478 -00:05:47,340 ~-~-> 00:05:49,170
479 -this candles higher low, surrounding
480 -
481 -121
482 -00:05:49,170 ~-~-> 00:05:50,550
483 -this one particular candle. That's why
484 -
485 -122
486 -00:05:50,550 ~-~-> 00:05:53,520
487 -I'm anchoring it to that. I'm dragging
488 -
489 -123
490 -00:05:53,520 ~-~-> 00:05:55,470
491 -it all the way up to this candle is
492 -
493 -124
494 -00:05:55,470 ~-~-> 00:05:58,110
495 -high, because it's as it's making higher
496 -
497 -125
498 -00:05:58,110 ~-~-> 00:06:00,660
499 -highs. I'm going to overlay the fib On
500 -
501 -126
502 -00:06:00,660 ~-~-> 00:06:04,080
503 -every successive higher high, because
504 -
505 -127
506 -00:06:04,080 ~-~-> 00:06:05,460
507 -that's going to be the range in which
508 -
509 -128
510 -00:06:05,730 ~-~-> 00:06:07,920
511 -any retracement comes it'll be within
512 -
513 -129
514 -00:06:07,920 ~-~-> 00:06:10,350
515 -that range. And it'll be apparent when
516 -
517 -130
518 -00:06:10,350 ~-~-> 00:06:13,740
519 -you see it here. So we draw this up. So
520 -
521 -131
522 -00:06:13,740 ~-~-> 00:06:15,570
523 -that Okay, so you can see the Fibonacci
524 -
525 -132
526 -00:06:15,570 ~-~-> 00:06:17,580
527 -that's anchored from this low up to this
528 -
529 -133
530 -00:06:17,580 ~-~-> 00:06:20,070
531 -high. It captures this retracement of
532 -
533 -134
534 -00:06:20,070 ~-~-> 00:06:24,060
535 -this candle right here is the 10th of
536 -
537 -135
538 -00:06:24,060 ~-~-> 00:06:27,450
539 -July 2020. Here's the 10th. On the 15
540 -
541 -136
542 -00:06:27,450 ~-~-> 00:06:28,500
543 -minute time frame, you can see how the
544 -
545 -137
546 -00:06:28,500 ~-~-> 00:06:29,880
547 -15 minute time frame drops down into the
548 -
549 -138
550 -00:06:29,880 ~-~-> 00:06:32,940
551 -optimal trade entry. Which is the 60 to
552 -
553 -139
554 -00:06:33,270 ~-~-> 00:06:36,390
555 -70 retracement level and 70.5 sweetspot.
556 -
557 -140
558 -00:06:37,560 ~-~-> 00:06:39,750
559 -This level is going to be one of the
560 -
561 -141
562 -00:06:39,750 ~-~-> 00:06:41,730
563 -levels you're going to like a lot but
564 -
565 -142
566 -00:06:41,730 ~-~-> 00:06:42,870
567 -you'll save yourself a lot of
568 -
569 -143
570 -00:06:42,870 ~-~-> 00:06:44,970
571 -frustration if you just use the 62%
572 -
573 -144
574 -00:06:44,970 ~-~-> 00:06:47,160
575 -retracement level Michael. Most of the
576 -
577 -145
578 -00:06:47,160 ~-~-> 00:06:49,800
579 -trades that you're hunting in these next
580 -
581 -146
582 -00:06:49,800 ~-~-> 00:06:52,890
583 -couple years are going to be unwilling
584 -
585 -147
586 -00:06:52,890 ~-~-> 00:06:55,020
587 -to trade at a 70.5 or even 79%
588 -
589 -148
590 -00:06:55,020 ~-~-> 00:06:56,160
591 -retracement level but he would just
592 -
593 -149
594 -00:06:56,160 ~-~-> 00:06:58,950
595 -simply use the 62% retracement level and
596 -
597 -150
598 -00:06:59,160 ~-~-> 00:07:01,920
599 -defer The insatiable desire for you to
600 -
601 -151
602 -00:07:01,920 ~-~-> 00:07:03,990
603 -find the perfect entry all the time
604 -
605 -152
606 -00:07:05,070 ~-~-> 00:07:07,830
607 -later on in your 40s you're going to
608 -
609 -153
610 -00:07:07,830 ~-~-> 00:07:10,470
611 -feel real comfortable with not having
612 -
613 -154
614 -00:07:10,680 ~-~-> 00:07:12,750
615 -the absolute best entry and the absolute
616 -
617 -155
618 -00:07:12,750 ~-~-> 00:07:15,360
619 -best exit. There's lots and lots of
620 -
621 -156
622 -00:07:15,360 ~-~-> 00:07:18,690
623 -opportunity in between. So 62%
624 -
625 -157
626 -00:07:18,690 ~-~-> 00:07:20,940
627 -retracement level on here is ideal and
628 -
629 -158
630 -00:07:20,940 ~-~-> 00:07:23,250
631 -we can actually see a key reaction off
632 -
633 -159
634 -00:07:23,250 ~-~-> 00:07:26,340
635 -of that 62% retracement level price
636 -
637 -160
638 -00:07:26,340 ~-~-> 00:07:29,100
639 -starts to move higher. Now, your focus
640 -
641 -161
642 -00:07:29,280 ~-~-> 00:07:33,030
643 -is to imagine every daily candle moving
644 -
645 -162
646 -00:07:33,030 ~-~-> 00:07:37,140
647 -higher. Open, near the low of the day,
648 -
649 -163
650 -00:07:37,230 ~-~-> 00:07:39,780
651 -close near the high the day. Up close is
652 -
653 -164
654 -00:07:39,780 ~-~-> 00:07:43,170
655 -the mode of delivery. We're expecting
656 -
657 -165
658 -00:07:43,230 ~-~-> 00:07:46,770
659 -until we get to this high. So when we
660 -
661 -166
662 -00:07:46,770 ~-~-> 00:07:48,960
663 -get up to it and through it. Okay,
664 -
665 -167
666 -00:07:48,960 ~-~-> 00:07:52,170
667 -remember that slogan to it and through
668 -
669 -168
670 -00:07:52,170 ~-~-> 00:07:56,760
671 -it to it and through it. That's how
672 -
673 -169
674 -00:07:56,760 ~-~-> 00:07:58,860
675 -you're going to find the easiest bread
676 -
677 -170
678 -00:07:58,860 ~-~-> 00:08:00,600
679 -and butter setups. There is In every
680 -
681 -171
682 -00:08:00,600 ~-~-> 00:08:04,050
683 -market asset class, the idea is the
684 -
685 -172
686 -00:08:04,050 ~-~-> 00:08:06,660
687 -framework is this optimal trade entry is
688 -
689 -173
690 -00:08:06,660 ~-~-> 00:08:08,880
691 -going to keep delivering until we get to
692 -
693 -174
694 -00:08:08,880 ~-~-> 00:08:12,030
695 -this high and slightly above it. Here is
696 -
697 -175
698 -00:08:12,390 ~-~-> 00:08:14,130
699 -one half a standard deviation, and it's
700 -
701 -176
702 -00:08:14,130 ~-~-> 00:08:18,180
703 -calling for 114 46 and two puppets.
704 -
705 -177
706 -00:08:18,870 ~-~-> 00:08:21,480
707 -Okay? The actual high of this price
708 -
709 -178
710 -00:08:21,480 ~-~-> 00:08:23,880
711 -when, as of the time of this discussion,
712 -
713 -179
714 -00:08:24,780 ~-~-> 00:08:28,680
715 -the high comes in at 114 52. And one bit
716 -
717 -180
718 -00:08:28,680 ~-~-> 00:08:30,360
719 -that so it goes a little bit above that,
720 -
721 -181
722 -00:08:30,360 ~-~-> 00:08:33,600
723 -but that's a good idea as a target, if
724 -
725 -182
726 -00:08:33,600 ~-~-> 00:08:36,570
727 -not just simply at the old high. Now,
728 -
729 -183
730 -00:08:36,600 ~-~-> 00:08:38,220
731 -we're going to take our concentration
732 -
733 -184
734 -00:08:38,250 ~-~-> 00:08:39,810
735 -away from the daily chart because we can
736 -
737 -185
738 -00:08:39,810 ~-~-> 00:08:40,830
739 -clearly see with the benefit of
740 -
741 -186
742 -00:08:40,830 ~-~-> 00:08:43,530
743 -hindsight here that we had a series of
744 -
745 -187
746 -00:08:43,590 ~-~-> 00:08:46,800
747 -up close candles, and each day you'd be
748 -
749 -188
750 -00:08:46,800 ~-~-> 00:08:49,650
751 -hunting a New York setup. Now this is
752 -
753 -189
754 -00:08:49,650 ~-~-> 00:08:51,660
755 -going to be the easiest framework,
756 -
757 -190
758 -00:08:51,660 ~-~-> 00:08:53,640
759 -Michael, if you just submit to it early
760 -
761 -191
762 -00:08:53,640 ~-~-> 00:08:56,940
763 -on, stop trying to find trades outside
764 -
765 -192
766 -00:08:56,940 ~-~-> 00:08:59,790
767 -of this timeframe. focus in here and
768 -
769 -193
770 -00:08:59,790 ~-~-> 00:09:01,800
771 -you're gonna To find everything that you
772 -
773 -194
774 -00:09:01,800 ~-~-> 00:09:04,680
775 -would ever need. So all of our attention
776 -
777 -195
778 -00:09:04,680 ~-~-> 00:09:06,450
779 -is going to go over to this chart here.
780 -
781 -196
782 -00:09:07,470 ~-~-> 00:09:09,540
783 -So scrubbing forward a little bit, you
784 -
785 -197
786 -00:09:09,540 ~-~-> 00:09:12,900
787 -can see the daily dividers. And what
788 -
789 -198
790 -00:09:12,900 ~-~-> 00:09:13,770
791 -you're going to do is you're going to
792 -
793 -199
794 -00:09:13,770 ~-~-> 00:09:17,400
795 -take a line segment, you use a rectangle
796 -
797 -200
798 -00:09:17,400 ~-~-> 00:09:19,110
799 -if you want. And you're going to
800 -
801 -201
802 -00:09:19,110 ~-~-> 00:09:22,800
803 -delineate on the chart each day 830 to
804 -
805 -202
806 -00:09:22,800 ~-~-> 00:09:24,240
807 -11 o'clock in the morning, New York
808 -
809 -203
810 -00:09:24,240 ~-~-> 00:09:27,600
811 -time. So when you study this time,
812 -
813 -204
814 -00:09:27,630 ~-~-> 00:09:28,860
815 -you're going to be able to see a
816 -
817 -205
818 -00:09:28,860 ~-~-> 00:09:31,650
819 -retracement lower, because remember the
820 -
821 -206
822 -00:09:31,680 ~-~-> 00:09:33,720
823 -framework is every day the daily candles
824 -
825 -207
826 -00:09:33,720 ~-~-> 00:09:36,000
827 -are going to go higher. That is what
828 -
829 -208
830 -00:09:36,000 ~-~-> 00:09:38,760
831 -your job as the power three.
832 -
833 -209
834 -00:09:40,289 ~-~-> 00:09:43,859
835 -This high is going to be attacked, but
836 -
837 -210
838 -00:09:43,889 ~-~-> 00:09:45,929
839 -each day is going to be accumulation,
840 -
841 -211
842 -00:09:45,959 ~-~-> 00:09:48,899
843 -manipulation and distribution. The
844 -
845 -212
846 -00:09:48,899 ~-~-> 00:09:50,519
847 -accumulation is going to be near the low
848 -
849 -213
850 -00:09:50,519 ~-~-> 00:09:52,019
851 -the day they're accumulating long
852 -
853 -214
854 -00:09:52,019 ~-~-> 00:09:54,359
855 -positions. You're going to see that
856 -
857 -215
858 -00:09:54,359 ~-~-> 00:09:57,239
859 -movement up going into New York, New
860 -
861 -216
862 -00:09:57,239 ~-~-> 00:10:00,449
863 -York session is 830 to 11 o'clock. As
864 -
865 -217
866 -00:10:00,479 ~-~-> 00:10:02,969
867 -the market retraces lower in there,
868 -
869 -218
870 -00:10:03,359 ~-~-> 00:10:05,219
871 -inside that consolidation and
872 -
873 -219
874 -00:10:05,219 ~-~-> 00:10:07,169
875 -retracement you're going to find a five
876 -
877 -220
878 -00:10:07,169 ~-~-> 00:10:10,079
879 -minute optimal trade entry. That means a
880 -
881 -221
882 -00:10:10,079 ~-~-> 00:10:13,349
883 -low swing high down in that doesn't take
884 -
885 -222
886 -00:10:13,349 ~-~-> 00:10:15,749
887 -out the previous swing low trades to the
888 -
889 -223
890 -00:10:15,749 ~-~-> 00:10:18,179
891 -62% retracement level, your stop would
892 -
893 -224
894 -00:10:18,179 ~-~-> 00:10:21,269
895 -be below the low that creates the
896 -
897 -225
898 -00:10:21,269 ~-~-> 00:10:24,659
899 -optimal trade entry. You'd go long at 62
900 -
901 -226
902 -00:10:24,659 ~-~-> 00:10:28,139
903 -plus spread and reach for previous day's
904 -
905 -227
906 -00:10:28,139 ~-~-> 00:10:32,279
907 -high or a combination of that and the
908 -
909 -228
910 -00:10:32,279 ~-~-> 00:10:33,809
911 -standard deviations on the Fibonacci
912 -
913 -229
914 -00:10:34,469 ~-~-> 00:10:38,699
915 -that mean like this is one standard
916 -
917 -230
918 -00:10:38,699 ~-~-> 00:10:40,349
919 -deviation. This is one half a standard
920 -
921 -231
922 -00:10:40,349 ~-~-> 00:10:43,559
923 -deviation and so on. So each day you can
924 -
925 -232
926 -00:10:43,559 ~-~-> 00:10:46,199
927 -start to see and back test how many pips
928 -
929 -233
930 -00:10:47,099 ~-~-> 00:10:49,349
931 -that using the 62% retracement level
932 -
933 -234
934 -00:10:49,349 ~-~-> 00:10:51,119
935 -would give you plus the spread for your
936 -
937 -235
938 -00:10:51,119 ~-~-> 00:10:53,099
939 -entry that you would have risked to get
940 -
941 -236
942 -00:10:53,099 ~-~-> 00:10:54,659
943 -that trade on and how many pips it
944 -
945 -237
946 -00:10:54,659 ~-~-> 00:10:58,889
947 -delivered how long the trade took from
948 -
949 -238
950 -00:10:58,889 ~-~-> 00:11:03,749
951 -entry. To delivery to your target. How
952 -
953 -239
954 -00:11:03,749 ~-~-> 00:11:06,779
955 -much of a drop down did each setup take?
956 -
957 -240
958 -00:11:07,979 ~-~-> 00:11:09,749
959 -You want to consider that because if you
960 -
961 -241
962 -00:11:09,749 ~-~-> 00:11:13,169
963 -have a large sample set of data, not
964 -
965 -242
966 -00:11:13,169 ~-~-> 00:11:14,759
967 -every trade is going to start and turn
968 -
969 -243
970 -00:11:14,759 ~-~-> 00:11:17,189
971 -right at the 62% retracement level, you
972 -
973 -244
974 -00:11:17,189 ~-~-> 00:11:19,529
975 -might have to incur some drawdown. And
976 -
977 -245
978 -00:11:19,529 ~-~-> 00:11:20,999
979 -don't make a big deal of it, Michael,
980 -
981 -246
982 -00:11:21,029 ~-~-> 00:11:22,739
983 -because you're going to have a lot of
984 -
985 -247
986 -00:11:22,739 ~-~-> 00:11:24,659
987 -trades. And they're not always going to
988 -
989 -248
990 -00:11:24,659 ~-~-> 00:11:27,779
991 -be reacting as soon as you get in many
992 -
993 -249
994 -00:11:27,779 ~-~-> 00:11:30,209
995 -times. The fact that they don't react
996 -
997 -250
998 -00:11:30,209 ~-~-> 00:11:32,939
999 -right away is indicative of you being of
1000 -
1001 -251
1002 -00:11:33,029 ~-~-> 00:11:35,429
1003 -you being offside and it's probably
1004 -
1005 -252
1006 -00:11:35,459 ~-~-> 00:11:36,779
1007 -better for you to just kill the trade
1008 -
1009 -253
1010 -00:11:36,779 ~-~-> 00:11:39,179
1011 -all together. But that's another lesson
1012 -
1013 -254
1014 -00:11:39,179 ~-~-> 00:11:45,689
1015 -the whole time. The next day, again, 830
1016 -
1017 -255
1018 -00:11:45,689 ~-~-> 00:11:47,429
1019 -to 11. You're going to look for the
1020 -
1021 -256
1022 -00:11:47,429 ~-~-> 00:11:49,469
1023 -price structure that London creates a
1024 -
1025 -257
1026 -00:11:49,469 ~-~-> 00:11:52,829
1027 -run and then a retracement down into
1028 -
1029 -258
1030 -00:11:52,829 ~-~-> 00:11:56,669
1031 -between 830 and 11. This is your optimal
1032 -
1033 -259
1034 -00:11:56,669 ~-~-> 00:11:58,769
1035 -trade entry. And when you see that
1036 -
1037 -260
1038 -00:11:59,549 ~-~-> 00:12:01,139
1039 -against you Students are chasing a level
1040 -
1041 -261
1042 -00:12:01,529 ~-~-> 00:12:03,029
1043 -aiming for a previous day's high
1044 -
1045 -262
1046 -00:12:03,209 ~-~-> 00:12:04,889
1047 -previous day's highs here. So you're
1048 -
1049 -263
1050 -00:12:04,889 ~-~-> 00:12:06,749
1051 -gonna aim for a run through that and
1052 -
1053 -264
1054 -00:12:06,749 ~-~-> 00:12:08,699
1055 -then add your standard deviations on
1056 -
1057 -265
1058 -00:12:08,699 ~-~-> 00:12:12,869
1059 -your Fibonacci tool for targets. same
1060 -
1061 -266
1062 -00:12:12,869 ~-~-> 00:12:15,239
1063 -premise. How long did it take you to get
1064 -
1065 -267
1066 -00:12:15,239 ~-~-> 00:12:18,029
1067 -to profitability and cover the dealer
1068 -
1069 -268
1070 -00:12:18,029 ~-~-> 00:12:20,339
1071 -spread? How many pips Did you encourage
1072 -
1073 -269
1074 -00:12:20,339 ~-~-> 00:12:22,409
1075 -draw down? How much time did it take to
1076 -
1077 -270
1078 -00:12:22,409 ~-~-> 00:12:25,649
1079 -get to target all of that is building up
1080 -
1081 -271
1082 -00:12:25,679 ~-~-> 00:12:29,519
1083 -a sample set of backlogs. This backlog
1084 -
1085 -272
1086 -00:12:29,549 ~-~-> 00:12:32,369
1087 -is what you go back through and study
1088 -
1089 -273
1090 -00:12:32,369 ~-~-> 00:12:38,879
1091 -for a hindsight derived experience. And
1092 -
1093 -274
1094 -00:12:38,879 ~-~-> 00:12:41,879
1095 -by doing this, it will program your
1096 -
1097 -275
1098 -00:12:41,879 ~-~-> 00:12:45,719
1099 -expectations to not perfect but it will
1100 -
1101 -276
1102 -00:12:45,719 ~-~-> 00:12:48,389
1103 -also show like we're showing here an
1104 -
1105 -277
1106 -00:12:48,389 ~-~-> 00:12:50,609
1107 -instance where an optimal trade entry
1108 -
1109 -278
1110 -00:12:50,639 ~-~-> 00:12:52,559
1111 -doesn't really necessarily form and even
1112 -
1113 -279
1114 -00:12:52,559 ~-~-> 00:12:55,829
1115 -if you use this one and down in getting
1116 -
1117 -280
1118 -00:12:55,829 ~-~-> 00:12:58,859
1119 -in long, your stop below this would have
1120 -
1121 -281
1122 -00:12:58,859 ~-~-> 00:13:00,449
1123 -been tagged. So you would have a loss.
1124 -
1125 -282
1126 -00:13:00,719 ~-~-> 00:13:02,939
1127 -So how much time did you take? Before
1128 -
1129 -283
1130 -00:13:02,939 ~-~-> 00:13:04,409
1131 -getting stopped out? How many pips did
1132 -
1133 -284
1134 -00:13:04,409 ~-~-> 00:13:06,209
1135 -it move against you from your initial
1136 -
1137 -285
1138 -00:13:06,209 ~-~-> 00:13:08,969
1139 -entry and how it traded for the day. All
1140 -
1141 -286
1142 -00:13:08,969 ~-~-> 00:13:11,819
1143 -of these ideas, give you again,
1144 -
1145 -287
1146 -00:13:11,969 ~-~-> 00:13:14,819
1147 -perspective. If you would have held on
1148 -
1149 -288
1150 -00:13:14,819 ~-~-> 00:13:17,279
1151 -to this trade, and didn't use a stop
1152 -
1153 -289
1154 -00:13:17,279 ~-~-> 00:13:19,199
1155 -loss, or kept moving your stop loss down
1156 -
1157 -290
1158 -00:13:19,229 ~-~-> 00:13:22,199
1159 -as you will have done, because you've
1160 -
1161 -291
1162 -00:13:22,199 ~-~-> 00:13:24,089
1163 -made those mistakes early on already.
1164 -
1165 -292
1166 -00:13:24,479 ~-~-> 00:13:25,739
1167 -And you're going to make those mistakes
1168 -
1169 -293
1170 -00:13:25,739 ~-~-> 00:13:26,939
1171 -for another year and a half, because
1172 -
1173 -294
1174 -00:13:26,939 ~-~-> 00:13:28,349
1175 -you're going to wrestle with the idea of
1176 -
1177 -295
1178 -00:13:28,349 ~-~-> 00:13:30,959
1179 -being right. It's not about being right,
1180 -
1181 -296
1182 -00:13:30,959 ~-~-> 00:13:34,409
1183 -Michael, it's about being consistent and
1184 -
1185 -297
1186 -00:13:34,409 ~-~-> 00:13:36,569
1187 -flexible. When you can see the signals
1188 -
1189 -298
1190 -00:13:36,569 ~-~-> 00:13:38,639
1191 -that are indicating you're wrong or
1192 -
1193 -299
1194 -00:13:38,639 ~-~-> 00:13:41,999
1195 -offside. You have to kill it. Don't arm
1196 -
1197 -300
1198 -00:13:41,999 ~-~-> 00:13:43,139
1199 -wrestle it. There's so many
1200 -
1201 -301
1202 -00:13:43,139 ~-~-> 00:13:45,599
1203 -opportunities. If you try to blow your
1204 -
1205 -302
1206 -00:13:45,599 ~-~-> 00:13:47,789
1207 -account on one particular trading day
1208 -
1209 -303
1210 -00:13:47,789 ~-~-> 00:13:50,069
1211 -because you can't accept the fact that
1212 -
1213 -304
1214 -00:13:50,069 ~-~-> 00:13:51,839
1215 -you were wrong. You can't accept it,
1216 -
1217 -305
1218 -00:13:51,839 ~-~-> 00:13:54,089
1219 -you're human. And you're going to
1220 -
1221 -306
1222 -00:13:54,179 ~-~-> 00:13:56,549
1223 -struggle more you have to and that's why
1224 -
1225 -307
1226 -00:13:56,549 ~-~-> 00:13:58,559
1227 -I'm talking to you right now. I don't
1228 -
1229 -308
1230 -00:13:58,559 ~-~-> 00:13:59,999
1231 -want you to go through all that because
1232 -
1233 -309
1234 -00:14:00,449 ~-~-> 00:14:05,429
1235 -At 47 turning 48 soon these problems
1236 -
1237 -310
1238 -00:14:05,489 ~-~-> 00:14:06,899
1239 -that you're going to encounter if you
1240 -
1241 -311
1242 -00:14:06,899 ~-~-> 00:14:09,599
1243 -don't listen to me are still going to be
1244 -
1245 -312
1246 -00:14:10,049 ~-~-> 00:14:12,299
1247 -painful to relive or remember
1248 -
1249 -313
1250 -00:14:14,399 ~-~-> 00:14:17,549
1251 -how much information do you use from
1252 -
1253 -314
1254 -00:14:17,549 ~-~-> 00:14:20,459
1255 -this bad example? In terms of
1256 -
1257 -315
1258 -00:14:20,459 ~-~-> 00:14:22,199
1259 -profitability, but good example for
1260 -
1261 -316
1262 -00:14:22,199 ~-~-> 00:14:24,449
1263 -learning. You don't want to torture
1264 -
1265 -317
1266 -00:14:24,449 ~-~-> 00:14:26,639
1267 -yourself and say, Well, I was stupid
1268 -
1269 -318
1270 -00:14:26,639 ~-~-> 00:14:29,309
1271 -because it was really screaming against
1272 -
1273 -319
1274 -00:14:29,309 ~-~-> 00:14:31,589
1275 -me or I should have saw these multiple
1276 -
1277 -320
1278 -00:14:31,919 ~-~-> 00:14:33,209
1279 -attempts to go higher and and break
1280 -
1281 -321
1282 -00:14:33,209 ~-~-> 00:14:35,999
1283 -down. I just picked a really bad trade
1284 -
1285 -322
1286 -00:14:35,999 ~-~-> 00:14:37,889
1287 -and I was foolish, resilient, don't do
1288 -
1289 -323
1290 -00:14:37,889 ~-~-> 00:14:40,499
1291 -those types of things. Michael, don't
1292 -
1293 -324
1294 -00:14:40,589 ~-~-> 00:14:43,139
1295 -fill your journal up. with toxic
1296 -
1297 -325
1298 -00:14:43,139 ~-~-> 00:14:45,209
1299 -thinking. You're going to fill up the
1300 -
1301 -326
1302 -00:14:45,209 ~-~-> 00:14:47,279
1303 -first three years of journals with a lot
1304 -
1305 -327
1306 -00:14:47,309 ~-~-> 00:14:51,389
1307 -of things that are going to be linked to
1308 -
1309 -328
1310 -00:14:51,389 ~-~-> 00:14:53,249
1311 -your subconscious. And you're going to
1312 -
1313 -329
1314 -00:14:53,249 ~-~-> 00:14:54,149
1315 -look at the markets and you're gonna
1316 -
1317 -330
1318 -00:14:54,149 ~-~-> 00:14:55,979
1319 -remember, and this looks like that time
1320 -
1321 -331
1322 -00:14:56,009 ~-~-> 00:14:58,379
1323 -I lost X amount of money and didn't use
1324 -
1325 -332
1326 -00:14:58,379 ~-~-> 00:15:00,689
1327 -a stop or I didn't Get out when I should
1328 -
1329 -333
1330 -00:15:00,689 ~-~-> 00:15:02,579
1331 -have gotten out and you're reliving all
1332 -
1333 -334
1334 -00:15:02,579 ~-~-> 00:15:03,809
1335 -those painful moments that you've
1336 -
1337 -335
1338 -00:15:03,809 ~-~-> 00:15:06,449
1339 -journaled. You're going to use your
1340 -
1341 -336
1342 -00:15:06,449 ~-~-> 00:15:09,179
1343 -journal to have positive, constructive,
1344 -
1345 -337
1346 -00:15:09,779 ~-~-> 00:15:12,629
1347 -not negative criticism, but positive
1348 -
1349 -338
1350 -00:15:12,629 ~-~-> 00:15:16,409
1351 -criticisms. It's important for you to
1352 -
1353 -339
1354 -00:15:16,469 ~-~-> 00:15:19,379
1355 -frame your annotations in your journal
1356 -
1357 -340
1358 -00:15:20,159 ~-~-> 00:15:21,809
1359 -in such a way that there's no emotions
1360 -
1361 -341
1362 -00:15:21,809 ~-~-> 00:15:24,869
1363 -whatsoever. None. But you still want to
1364 -
1365 -342
1366 -00:15:24,899 ~-~-> 00:15:27,209
1367 -pull out the information that's salient
1368 -
1369 -343
1370 -00:15:27,209 ~-~-> 00:15:29,969
1371 -to the lesson because when you're wrong,
1372 -
1373 -344
1374 -00:15:30,029 ~-~-> 00:15:32,729
1375 -you need to study what led to you being
1376 -
1377 -345
1378 -00:15:32,729 ~-~-> 00:15:34,649
1379 -wrong. So that way, eventually, you're
1380 -
1381 -346
1382 -00:15:34,649 ~-~-> 00:15:36,539
1383 -going to key up on the things that
1384 -
1385 -347
1386 -00:15:36,539 ~-~-> 00:15:38,909
1387 -you're doing that are problematic, and
1388 -
1389 -348
1390 -00:15:38,909 ~-~-> 00:15:40,289
1391 -you're falling victim to over and over
1392 -
1393 -349
1394 -00:15:40,289 ~-~-> 00:15:42,179
1395 -again. But until you study them with a
1396 -
1397 -350
1398 -00:15:42,179 ~-~-> 00:15:44,459
1399 -sober mind, and objectively, you're
1400 -
1401 -351
1402 -00:15:44,459 ~-~-> 00:15:45,899
1403 -going to keep falling victim to it and
1404 -
1405 -352
1406 -00:15:45,899 ~-~-> 00:15:47,009
1407 -you're not gonna understand why it's
1408 -
1409 -353
1410 -00:15:47,009 ~-~-> 00:15:48,959
1411 -happening. Not only will you lose a lot
1412 -
1413 -354
1414 -00:15:48,959 ~-~-> 00:15:50,819
1415 -of money, but you're going to have a lot
1416 -
1417 -355
1418 -00:15:50,819 ~-~-> 00:15:52,619
1419 -of frustration that's completely
1420 -
1421 -356
1422 -00:15:52,619 ~-~-> 00:15:54,479
1423 -avoidable if you just do that this gave
1424 -
1425 -357
1426 -00:15:54,479 ~-~-> 00:15:58,919
1427 -you right now. The next day, same thing,
1428 -
1429 -358
1430 -00:15:58,949 ~-~-> 00:16:04,049
1431 -we're not looking For every single day
1432 -
1433 -359
1434 -00:16:04,049 ~-~-> 00:16:05,399
1435 -to be a winner, we're expecting it's
1436 -
1437 -360
1438 -00:16:05,399 ~-~-> 00:16:07,649
1439 -going to be a trade there may not pan
1440 -
1441 -361
1442 -00:16:07,649 ~-~-> 00:16:10,289
1443 -out. But we're staying with the same
1444 -
1445 -362
1446 -00:16:10,289 ~-~-> 00:16:12,989
1447 -narrative we're looking for this day.
1448 -
1449 -363
1450 -00:16:12,989 ~-~-> 00:16:16,139
1451 -Here's a 16th. And that is on the daily,
1452 -
1453 -364
1454 -00:16:16,919 ~-~-> 00:16:19,319
1455 -right here, that's this day here. Now
1456 -
1457 -365
1458 -00:16:19,319 ~-~-> 00:16:21,899
1459 -that's a down close candle. When you see
1460 -
1461 -366
1462 -00:16:21,899 ~-~-> 00:16:24,419
1463 -this, okay, you're going to see this
1464 -
1465 -367
1466 -00:16:24,419 ~-~-> 00:16:26,069
1467 -high and the next candle has a lower
1468 -
1469 -368
1470 -00:16:26,069 ~-~-> 00:16:28,949
1471 -high, that swing high is gonna make you
1472 -
1473 -369
1474 -00:16:28,949 ~-~-> 00:16:32,219
1475 -think early on that it's creating a top
1476 -
1477 -370
1478 -00:16:32,399 ~-~-> 00:16:34,199
1479 -and there's no more buy signals to take.
1480 -
1481 -371
1482 -00:16:34,499 ~-~-> 00:16:37,049
1483 -Don't believe that. Just because it's
1484 -
1485 -372
1486 -00:16:37,049 ~-~-> 00:16:38,309
1487 -making a swing high doesn't mean it's
1488 -
1489 -373
1490 -00:16:38,309 ~-~-> 00:16:40,259
1491 -not going to likely give you another
1492 -
1493 -374
1494 -00:16:40,259 ~-~-> 00:16:42,239
1495 -buying opportunity. Even on that
1496 -
1497 -375
1498 -00:16:42,239 ~-~-> 00:16:44,009
1499 -particular day, it gives us an optimal
1500 -
1501 -376
1502 -00:16:44,009 ~-~-> 00:16:46,829
1503 -trade entry here. And you want to study
1504 -
1505 -377
1506 -00:16:46,829 ~-~-> 00:16:49,559
1507 -again 62% retracement level. How much
1508 -
1509 -378
1510 -00:16:49,559 ~-~-> 00:16:50,669
1511 -time did it take to cover the long
1512 -
1513 -379
1514 -00:16:50,669 ~-~-> 00:16:53,219
1515 -spread and move to target? How many pips
1516 -
1517 -380
1518 -00:16:53,219 ~-~-> 00:16:55,769
1519 -to offer. And even though it didn't get
1520 -
1521 -381
1522 -00:16:55,769 ~-~-> 00:16:58,049
1523 -to the previous day's high by taking out
1524 -
1525 -382
1526 -00:16:58,049 ~-~-> 00:17:00,749
1527 -scaled profits, you don't have To be
1528 -
1529 -383
1530 -00:17:00,899 ~-~-> 00:17:03,479
1531 -right about the next trade running to
1532 -
1533 -384
1534 -00:17:03,479 ~-~-> 00:17:04,439
1535 -the previous day's high when you're
1536 -
1537 -385
1538 -00:17:04,439 ~-~-> 00:17:07,589
1539 -bullish, short term highs in here as it
1540 -
1541 -386
1542 -00:17:07,589 ~-~-> 00:17:10,019
1543 -runs up, you want to take profits off
1544 -
1545 -387
1546 -00:17:10,049 ~-~-> 00:17:12,449
1547 -there. And when you back test and
1548 -
1549 -388
1550 -00:17:12,479 ~-~-> 00:17:14,369
1551 -practice, you would be doing the same
1552 -
1553 -389
1554 -00:17:14,369 ~-~-> 00:17:16,349
1555 -thing. Assuming that if you were in a
1556 -
1557 -390
1558 -00:17:16,349 ~-~-> 00:17:17,609
1559 -trade, you would take something off
1560 -
1561 -391
1562 -00:17:17,609 ~-~-> 00:17:19,079
1563 -here, and you'll take something off
1564 -
1565 -392
1566 -00:17:19,079 ~-~-> 00:17:21,329
1567 -here. And as it goes up into this area
1568 -
1569 -393
1570 -00:17:21,329 ~-~-> 00:17:23,729
1571 -over here, you may have been expecting
1572 -
1573 -394
1574 -00:17:23,729 ~-~-> 00:17:25,289
1575 -it to trade above here, but in this
1576 -
1577 -395
1578 -00:17:25,289 ~-~-> 00:17:29,249
1579 -case, it turns around. How much time did
1580 -
1581 -396
1582 -00:17:29,249 ~-~-> 00:17:32,069
1583 -you stay in the trade? While it was
1584 -
1585 -397
1586 -00:17:32,069 ~-~-> 00:17:35,099
1587 -dropped, dropping down here? How long
1588 -
1589 -398
1590 -00:17:35,099 ~-~-> 00:17:36,569
1591 -would you expect to hold on to that
1592 -
1593 -399
1594 -00:17:36,569 ~-~-> 00:17:37,979
1595 -trade before you realize that you were
1596 -
1597 -400
1598 -00:17:37,979 ~-~-> 00:17:42,119
1599 -wrong? and be honest about it, because
1600 -
1601 -401
1602 -00:17:42,149 ~-~-> 00:17:44,429
1603 -what you pour into your back testing and
1604 -
1605 -402
1606 -00:17:44,429 ~-~-> 00:17:47,549
1607 -practicing, while it's hindsight, if you
1608 -
1609 -403
1610 -00:17:47,549 ~-~-> 00:17:50,039
1611 -are not honest with yourself, if you put
1612 -
1613 -404
1614 -00:17:50,039 ~-~-> 00:17:53,219
1615 -in poor expectations, you're going to
1616 -
1617 -405
1618 -00:17:53,219 ~-~-> 00:17:56,969
1619 -get ridiculously backwards results.
1620 -
1621 -406
1622 -00:17:57,029 ~-~-> 00:17:58,499
1623 -You're going to expect certain things
1624 -
1625 -407
1626 -00:17:58,499 ~-~-> 00:18:00,689
1627 -that aren't realistic to see in terms of
1628 -
1629 -408
1630 -00:18:01,289 ~-~-> 00:18:04,319
1631 -outcome. And you're going to be at the
1632 -
1633 -409
1634 -00:18:04,319 ~-~-> 00:18:07,499
1635 -mercy of your emotions. And you're going
1636 -
1637 -410
1638 -00:18:07,499 ~-~-> 00:18:09,419
1639 -to be pulled around by a psychological
1640 -
1641 -411
1642 -00:18:09,419 ~-~-> 00:18:11,369
1643 -tug of war about being right or wrong if
1644 -
1645 -412
1646 -00:18:11,369 ~-~-> 00:18:14,339
1647 -you don't do these things. So next day
1648 -
1649 -413
1650 -00:18:14,339 ~-~-> 00:18:16,679
1651 -even though we had a losing day here in
1652 -
1653 -414
1654 -00:18:16,679 ~-~-> 00:18:18,539
1655 -this trade while it was profitable, it
1656 -
1657 -415
1658 -00:18:18,539 ~-~-> 00:18:19,919
1659 -didn't deliver to the previous day's
1660 -
1661 -416
1662 -00:18:19,919 ~-~-> 00:18:22,439
1663 -high, it's fine. You stick with the
1664 -
1665 -417
1666 -00:18:22,439 ~-~-> 00:18:26,189
1667 -narrative. Next trading day. Here it is
1668 -
1669 -418
1670 -00:18:26,219 ~-~-> 00:18:28,559
1671 -830 to 11 optimal trade entry, it's
1672 -
1673 -419
1674 -00:18:28,559 ~-~-> 00:18:30,149
1675 -dropping down, and it gets us to
1676 -
1677 -420
1678 -00:18:30,149 ~-~-> 00:18:32,309
1679 -opportunities it drops into it here and
1680 -
1681 -421
1682 -00:18:32,309 ~-~-> 00:18:34,049
1683 -gives us another one here, and then
1684 -
1685 -422
1686 -00:18:34,049 ~-~-> 00:18:36,269
1687 -takes out the previous day's high here.
1688 -
1689 -423
1690 -00:18:37,289 ~-~-> 00:18:42,209
1691 -So we have now delivered a setup that
1692 -
1693 -424
1694 -00:18:42,209 ~-~-> 00:18:44,399
1695 -takes out the previous day's high. And
1696 -
1697 -425
1698 -00:18:44,429 ~-~-> 00:18:46,019
1699 -this is Friday, so you can't trade the
1700 -
1701 -426
1702 -00:18:46,019 ~-~-> 00:18:48,119
1703 -next day. It's a Saturday, but how many
1704 -
1705 -427
1706 -00:18:48,119 ~-~-> 00:18:52,259
1707 -pips did it take from entry to scaling
1708 -
1709 -428
1710 -00:18:52,469 ~-~-> 00:18:54,209
1711 -at your previous day's high how many
1712 -
1713 -429
1714 -00:18:54,209 ~-~-> 00:18:56,099
1715 -pips was that? How much time did it
1716 -
1717 -430
1718 -00:18:56,099 ~-~-> 00:18:58,289
1719 -take? How many pips did you have in draw
1720 -
1721 -431
1722 -00:18:58,289 ~-~-> 00:19:02,519
1723 -down? All of those ideas, you build a
1724 -
1725 -432
1726 -00:19:02,519 ~-~-> 00:19:05,129
1727 -backlog of, and then on the weekends,
1728 -
1729 -433
1730 -00:19:05,459 ~-~-> 00:19:08,129
1731 -you want to study how each one of these
1732 -
1733 -434
1734 -00:19:08,219 ~-~-> 00:19:10,229
1735 -work together to complement one another.
1736 -
1737 -435
1738 -00:19:10,229 ~-~-> 00:19:10,739
1739 -In other words,
1740 -
1741 -436
1742 -00:19:11,010 ~-~-> 00:19:12,930
1743 -how did the previous day's trading set
1744 -
1745 -437
1746 -00:19:12,930 ~-~-> 00:19:15,300
1747 -up the situation you saw on the next
1748 -
1749 -438
1750 -00:19:15,300 ~-~-> 00:19:18,330
1751 -day, and look at it from a hourly
1752 -
1753 -439
1754 -00:19:18,330 ~-~-> 00:19:21,060
1755 -perspective, a daily perspective, and
1756 -
1757 -440
1758 -00:19:21,060 ~-~-> 00:19:22,980
1759 -it'll help you frame out the
1760 -
1761 -441
1762 -00:19:23,010 ~-~-> 00:19:24,480
1763 -institutional order flow that you'll
1764 -
1765 -442
1766 -00:19:24,480 ~-~-> 00:19:27,270
1767 -become known for in the Forex division.
1768 -
1769 -443
1770 -00:19:28,110 ~-~-> 00:19:31,230
1771 -So in this case, following this
1772 -
1773 -444
1774 -00:19:31,230 ~-~-> 00:19:33,540
1775 -criteria, and practicing every single
1776 -
1777 -445
1778 -00:19:33,540 ~-~-> 00:19:35,250
1779 -day, just keeping a backlog of it,
1780 -
1781 -446
1782 -00:19:35,730 ~-~-> 00:19:37,620
1783 -you're going to not only train yourself
1784 -
1785 -447
1786 -00:19:37,620 ~-~-> 00:19:39,270
1787 -to see the setup, but you're going to
1788 -
1789 -448
1790 -00:19:39,270 ~-~-> 00:19:40,950
1791 -grow in your understanding about how the
1792 -
1793 -449
1794 -00:19:40,950 ~-~-> 00:19:43,620
1795 -characteristics repeat over and over and
1796 -
1797 -450
1798 -00:19:43,620 ~-~-> 00:19:45,690
1799 -over again, and staying with just one
1800 -
1801 -451
1802 -00:19:45,690 ~-~-> 00:19:48,840
1803 -currency, but framing all the ideas on a
1804 -
1805 -452
1806 -00:19:48,840 ~-~-> 00:19:51,690
1807 -higher timeframe basis. That leads to
1808 -
1809 -453
1810 -00:19:51,720 ~-~-> 00:19:54,180
1811 -high consistency without having to need
1812 -
1813 -454
1814 -00:19:54,360 ~-~-> 00:19:58,620
1815 -perfection. So hope you found this one
1816 -
1817 -455
1818 -00:19:58,620 ~-~-> 00:20:00,450
1819 -insightful, I will be back again Next
1820 -
1821 -456
1822 -00:20:00,450 ~-~-> 00:20:02,610
1823 -week with the final portion of the
1824 -
1825 -457
1826 -00:20:02,610 ~-~-> 00:20:05,190
1827 -series, how to transition into practice
1828 -
1829 -458
1830 -00:20:05,190 ~-~-> 00:20:07,320
1831 -into live funds. Until then, I wish you
1832 -
1833 -459
1834 -00:20:07,320 ~-~-> 00:20:08,370
1835 -good luck and good trading.
1836 -
1837 -
1 +test