ICT Market Maker Primer Course - 03 - Essentials To ICT Market Structure.srt
1
00:00:12,509 --> 00:00:16,259
ICT: Okay, folks, essentials to market structure. And this
2
00:00:16,259 --> 00:00:20,249
module is going to be really based upon the premise of
3
00:00:20,249 --> 00:00:24,239
looking towards helping you educate yourself in determining
4
00:00:24,629 --> 00:00:28,079
trade direction. This is probably one of the most
5
00:00:28,649 --> 00:00:33,989
reoccurring email inquiries and posts that you see in the
6
00:00:33,989 --> 00:00:39,419
forums on baby pips directed to me. It's my goal, obviously,
7
00:00:39,419 --> 00:00:43,319
to share a little further amplification on some of the
8
00:00:43,529 --> 00:00:48,059
concepts that I use in determining trade direction. And
9
00:00:48,059 --> 00:00:49,889
hopefully, this will be insightful for you.
10
00:00:51,150 --> 00:00:52,260
But what do
11
00:00:52,260 --> 00:00:55,230
we do when we sit down from the charts what's the primary
12
00:00:55,230 --> 00:01:01,260
function as a trader Well, you as a forex trader, you want
13
00:01:01,260 --> 00:01:05,070
to be finding your way through price. And as a new trader, I
14
00:01:05,070 --> 00:01:08,850
can understand how daunting this task may be because there's
15
00:01:08,850 --> 00:01:11,790
so many different timeframes, you have your monthly, weekly,
16
00:01:11,790 --> 00:01:14,670
daily, four hour, one hour, 15 minutes or five minutes or
17
00:01:14,670 --> 00:01:18,600
one minute chart, you have tick charts, all these different
18
00:01:18,600 --> 00:01:22,020
timeframes, it's very bewildering sometimes, if you
19
00:01:22,020 --> 00:01:24,930
understand really what it is you'd be doing and breaking it
20
00:01:24,930 --> 00:01:30,600
down breaking down price in a uniform structured way. So the
21
00:01:30,630 --> 00:01:33,810
first thing I'm going to really counsel you on is your
22
00:01:33,810 --> 00:01:36,750
primary objective is to know your timeframe that you're
23
00:01:36,750 --> 00:01:40,350
trading, okay. And it gets back to what type of trader
24
00:01:40,350 --> 00:01:42,060
you're going to be, are you going to be a position trader,
25
00:01:42,060 --> 00:01:44,970
you're gonna be a swing trader, a short term trader Are you
26
00:01:44,970 --> 00:01:49,380
gonna be a day trader or a scalper? I can't teach you how to
27
00:01:49,380 --> 00:01:54,150
find the correct style trader that's within you. That's all
28
00:01:54,150 --> 00:01:57,870
part of your personal makeup. So this module much in the
29
00:01:57,870 --> 00:02:01,320
same capacity my other modules have been They're going to
30
00:02:01,320 --> 00:02:04,500
speak in general terms, okay? But it's going to give you
31
00:02:04,500 --> 00:02:07,080
enough insight for you to be able to determine what it is
32
00:02:07,080 --> 00:02:10,260
that you need to be focusing on for you to find the most
33
00:02:10,290 --> 00:02:13,260
optimal way of trading for you yourself, okay? Because each
34
00:02:13,260 --> 00:02:17,250
of us are going to be different. As you grow and you mature
35
00:02:17,250 --> 00:02:21,990
as a trader, you may be multi timeframe based in terms of
36
00:02:21,990 --> 00:02:25,560
trading, and alerts. I consider myself a dynamic trader
37
00:02:25,560 --> 00:02:30,390
simply because I can trade any one of these timeframes. Now,
38
00:02:30,450 --> 00:02:36,480
I excel in the short term to swing trading area, but I can
39
00:02:36,480 --> 00:02:40,950
day trade and I can scalp but I prefer not to. It would be
40
00:02:40,950 --> 00:02:45,750
my advice to you is if you can try to work within the short
41
00:02:45,750 --> 00:02:47,820
term to day trading in the beginning because it's going to
42
00:02:47,820 --> 00:02:51,060
give you the most immediate feedback and it's going to give
43
00:02:51,060 --> 00:02:56,850
you the confidence you need to be sticking to a plan because
44
00:02:56,880 --> 00:02:59,580
obviously, as a position trader, you don't have a whole lot
45
00:02:59,580 --> 00:03:03,900
of opportunity. materializing that frequently. Swing Trading
46
00:03:03,900 --> 00:03:07,170
again, same capacity, it's going to be a little little while
47
00:03:07,170 --> 00:03:10,020
between each setup. So it's gonna be harder for a new trader
48
00:03:10,110 --> 00:03:13,770
looking to find themselves to wait between the signals and
49
00:03:13,770 --> 00:03:18,030
stick within that specific framework for trading. So short
50
00:03:18,030 --> 00:03:20,700
term trading and day trading and scalping, let's let's void
51
00:03:20,700 --> 00:03:23,640
debt for now. But we will talk about how you can utilize
52
00:03:23,640 --> 00:03:26,970
these concepts for scalping. But, again, short term and day
53
00:03:26,970 --> 00:03:31,350
trades. If you're brand new to price action, those are very
54
00:03:31,350 --> 00:03:34,140
rewarding because they give you immediate feedback, new
55
00:03:34,140 --> 00:03:38,400
traders sometimes need. So let's talk about what the
56
00:03:38,400 --> 00:03:41,160
professional perspective is when we're applying market
57
00:03:41,160 --> 00:03:44,790
structure. Well, obviously, for position trades, this is
58
00:03:44,790 --> 00:03:48,240
going to be anywhere between three to as much as six to six
59
00:03:48,240 --> 00:03:51,720
months to a year in terms of duration. Now, I don't have a
60
00:03:51,720 --> 00:03:56,130
whole lot of types of trades like this, but every three to
61
00:03:56,130 --> 00:03:59,100
four months in the marketplace, whether it be in stocks or
62
00:03:59,430 --> 00:04:05,100
commodity or Forex. There is a specific swing that manifest
63
00:04:05,100 --> 00:04:07,560
itself and we talked about that in other videos and other
64
00:04:07,560 --> 00:04:10,620
teaching. I'm not going to cover that here, but if you are
65
00:04:10,620 --> 00:04:14,550
that type of trader, obviously the three timeframes that you
66
00:04:14,550 --> 00:04:18,030
would utilize to break down market structure for your
67
00:04:18,030 --> 00:04:22,680
particular market would obviously be monthly, the weekly and
68
00:04:22,680 --> 00:04:26,190
the daily Okay, monthly being your highest timeframe, you
69
00:04:26,190 --> 00:04:30,510
weekly being your midline or mid level timeframe and then
70
00:04:30,510 --> 00:04:33,840
you have your daily that would be your short term. Now, as a
71
00:04:33,840 --> 00:04:37,500
swing trader, okay, your premise for breaking down market
72
00:04:37,500 --> 00:04:41,640
structure will be comprised over looking at the daily the
73
00:04:41,640 --> 00:04:46,350
four hour and the one hour chart okay. Your setup will be
74
00:04:46,350 --> 00:04:48,930
based upon what you see on the higher timeframe the daily
75
00:04:49,170 --> 00:04:52,860
much in the same capacity for position trade. The monthly
76
00:04:52,920 --> 00:04:56,190
will be your position trade premise, whereas if we are
77
00:04:56,400 --> 00:04:59,340
considerably overbought and there should be some kind of a
78
00:04:59,340 --> 00:05:02,790
topping form on a monthly chart, you would look to see
79
00:05:02,880 --> 00:05:06,870
market structure break down on the weekly and daily the
80
00:05:06,900 --> 00:05:11,160
facilitate a short position while on a swing trade model,
81
00:05:12,000 --> 00:05:15,600
you utilize that same measure of market structure by
82
00:05:15,600 --> 00:05:18,810
utilizing the highest timeframe for swing trades. And this
83
00:05:19,440 --> 00:05:22,320
approach would be the daily chart and then breaking that
84
00:05:22,320 --> 00:05:28,170
down into a four hour chart, and then lesser price action
85
00:05:28,170 --> 00:05:32,580
study in the one hour chart. So you'll be timing on the one
86
00:05:32,580 --> 00:05:37,530
hour you will be managing on the four hour and your premise
87
00:05:37,590 --> 00:05:40,650
or the trade idea would be built upon the highest timeframe
88
00:05:40,650 --> 00:05:43,290
which would be the daily chart, okay, and the swing traders
89
00:05:43,650 --> 00:05:46,950
model here. If you're a short term trader, obviously, the
90
00:05:46,950 --> 00:05:50,070
duration of time for these types of trades could be anywhere
91
00:05:50,070 --> 00:05:54,450
between one day to as much as a week or so. Swing Trading is
92
00:05:54,450 --> 00:05:58,080
about a week or more in terms of trade duration. I forgot to
93
00:05:58,080 --> 00:06:01,410
mention that but For short term trades, you'll be using the
94
00:06:01,410 --> 00:06:05,460
four hour chart for your trade premise or your directional
95
00:06:05,490 --> 00:06:09,450
bias. And then on the one hour chart, that would be your
96
00:06:09,540 --> 00:06:14,640
trade management or mid level timeframe. And then your 15
97
00:06:14,640 --> 00:06:18,060
minute chart would be utilized for your timing for entry and
98
00:06:18,510 --> 00:06:21,330
possibly looking for early reversal signs that your trade
99
00:06:21,330 --> 00:06:26,160
may be petering out and it's time to take profits. For day
100
00:06:26,160 --> 00:06:30,120
trades, obviously, you can see it's the one hour chart and
101
00:06:30,120 --> 00:06:33,180
the highest timeframe, you would be managing your trade on
102
00:06:33,180 --> 00:06:36,750
the 15 minute timeframe. And your five minute chart will be
103
00:06:36,750 --> 00:06:41,460
utilized to enter. Now, it's not to say that you can't use a
104
00:06:41,460 --> 00:06:45,450
five minute chart on the short term swing and position
105
00:06:45,450 --> 00:06:49,380
trades for entry. Okay, I'm giving you the framework for at
106
00:06:49,380 --> 00:06:54,450
least having three timeframes across the spectrum of your
107
00:06:54,450 --> 00:06:57,840
trading and how you break down market structure over these
108
00:06:57,840 --> 00:07:02,460
three specific time. frames for each individual trading
109
00:07:02,460 --> 00:07:08,460
model will give you again, the building blocks to flesh out
110
00:07:08,460 --> 00:07:13,770
what you need to see in terms of directional bias. Okay? So
111
00:07:13,770 --> 00:07:18,870
let's take a look at a closer look at price, action and
112
00:07:18,870 --> 00:07:24,120
market structure. Now the keys to multiple timeframe market
113
00:07:24,120 --> 00:07:29,250
structure, okay are rather simple. Where's your focus? Your
114
00:07:29,250 --> 00:07:31,890
focus should be on the highest of the three timeframes.
115
00:07:32,340 --> 00:07:36,960
trades will be managed by the highest or mid timeframes.
116
00:07:37,230 --> 00:07:42,240
Okay, in other words, if you are a swing trader, you're
117
00:07:42,240 --> 00:07:48,390
going to be utilizing that daily timeframe to manage or the
118
00:07:48,390 --> 00:07:51,420
four hour chart to manage your trade okay, but the daily is
119
00:07:51,420 --> 00:07:55,140
going to be utilized to facilitate the trade premise. In
120
00:07:55,140 --> 00:07:58,440
other words, that's going to give you your directional bias
121
00:07:58,560 --> 00:08:01,500
okay the market structure that is One a daily chart that's
122
00:08:01,500 --> 00:08:06,720
framing your swing trades. Okay? Once you get into a trade,
123
00:08:06,780 --> 00:08:09,900
you would be managing that trade on a four hour timeframe.
124
00:08:10,470 --> 00:08:13,170
And you would just use respective timeframes we just talked
125
00:08:13,170 --> 00:08:17,730
about in the previous slide and then your one hour chart
126
00:08:17,730 --> 00:08:20,850
would be used for timing purposes, okay. So, the shortest
127
00:08:20,850 --> 00:08:24,720
timeframe in that regard for swing trading would be the 60
128
00:08:24,720 --> 00:08:29,490
minute chart. So, your entry signals would be derived from
129
00:08:29,490 --> 00:08:33,900
having studied the market structure on the daily and the
130
00:08:33,900 --> 00:08:38,670
four hour then your one hour chart will facilitate the
131
00:08:38,940 --> 00:08:41,850
specific entry point. Okay, so you know, what you would do
132
00:08:41,850 --> 00:08:46,470
your entry concepts and techniques on the one hour chart for
133
00:08:46,470 --> 00:08:51,030
swing trades. The highest probability trades are made in the
134
00:08:51,030 --> 00:08:54,750
higher timeframe direction, okay. Now, there are going to be
135
00:08:54,750 --> 00:08:59,910
instances where the higher timeframe premise may be bullish.
136
00:09:00,000 --> 00:09:03,600
But you're approaching a key resistance level. So that may
137
00:09:03,630 --> 00:09:04,590
be trumped.
138
00:09:05,160 --> 00:09:08,700
So that's where we're going to go back to the core
139
00:09:08,700 --> 00:09:12,180
essentials to technical analysis that being support
140
00:09:12,180 --> 00:09:15,630
resistance trumps everything. Okay? Without the
141
00:09:15,630 --> 00:09:20,130
understanding of key support resistance levels, you're not
142
00:09:20,130 --> 00:09:22,890
going to get to a directional bias regardless of what
143
00:09:23,160 --> 00:09:25,890
trading model you're using position, day trading, whatever
144
00:09:25,890 --> 00:09:29,250
it is, if it's not framed on the premise of key support
145
00:09:29,250 --> 00:09:32,760
resistance levels, it's probably going to be a struggling
146
00:09:33,000 --> 00:09:36,240
point for you as well. Okay, so you have to go back to the
147
00:09:36,240 --> 00:09:40,500
core essentials to my concepts and just sound trading all
148
00:09:40,500 --> 00:09:43,890
together. Key support resistance levels are where it's all
149
00:09:43,890 --> 00:09:47,760
at. Okay, without those, all of these lines and all these
150
00:09:48,330 --> 00:09:50,670
procedures that we're going to be covering here, and we've
151
00:09:50,670 --> 00:09:53,790
covered in previous videos and such is going to do no good
152
00:09:53,790 --> 00:09:56,280
to you okay. So you have to understand what is a key support
153
00:09:56,280 --> 00:09:59,820
resistance level. So if you are looking at the highest time
154
00:09:59,820 --> 00:10:05,310
frame for your particular model that will hopefully draw
155
00:10:05,310 --> 00:10:08,730
your attention to whatever key to support resistance level
156
00:10:08,940 --> 00:10:12,990
at that point in price action. Obviously, you can always go
157
00:10:12,990 --> 00:10:18,780
out to a daily and weekly just as a catch all as far as
158
00:10:18,810 --> 00:10:20,910
whatever timeframe you're trading if you just look at a
159
00:10:20,910 --> 00:10:23,880
daily and weekly in terms of support resistance, those will
160
00:10:23,880 --> 00:10:28,740
be helpful to you. Now, the market profiles will also assist
161
00:10:28,740 --> 00:10:31,260
you in market structure analysis concepts that mean are we
162
00:10:31,260 --> 00:10:34,740
in a trending market? Are we in a reversal pattern or
163
00:10:34,740 --> 00:10:38,640
formation or that type of profile in the marketplace? And
164
00:10:38,640 --> 00:10:41,730
are we in a consolidation, preparing for a breakout
165
00:10:41,730 --> 00:10:48,090
scenario? Okay, so, market profiling is essential to helping
166
00:10:48,090 --> 00:10:52,950
you and assisting you and measuring what the current market
167
00:10:52,950 --> 00:10:55,170
structure is okay, now, are we bullish or bearish
168
00:11:01,500 --> 00:11:04,170
All right. Well, we're looking at market structure, we're
169
00:11:04,170 --> 00:11:08,430
referring to market structure. What are we speaking about?
170
00:11:08,460 --> 00:11:12,060
What's the what is it that we're trying to get at? Okay?
171
00:11:13,140 --> 00:11:20,190
Well, if you look at a price, rally up, and then price
172
00:11:20,190 --> 00:11:23,820
hitting a major resistance level, we're going to assume for
173
00:11:23,820 --> 00:11:27,060
a moment that this is your higher timeframe. Okay? And I'm
174
00:11:27,060 --> 00:11:29,370
going to keep it generic because that way you can apply it
175
00:11:29,370 --> 00:11:32,370
to whatever your higher timeframe is based on the model
176
00:11:32,370 --> 00:11:39,720
traded you are aiming to be as price rallies up into what we
177
00:11:39,870 --> 00:11:45,390
perceive as a higher level, key resistance level. Price
178
00:11:45,390 --> 00:11:48,210
never moves in a straight line. Okay, so there's going to be
179
00:11:48,210 --> 00:11:51,780
consolidation, a price move up and other consolidation, a
180
00:11:51,780 --> 00:11:55,080
price move up and then as price makes it into this
181
00:11:55,080 --> 00:11:58,950
resistance level, then we will be anticipating a reversal.
182
00:11:59,040 --> 00:12:04,650
So when markets start to break down, taking out short term
183
00:12:05,250 --> 00:12:09,570
swing lows in here, this short term swing low when the
184
00:12:09,570 --> 00:12:13,380
highest timeframe for your particular trading model. Once
185
00:12:13,380 --> 00:12:16,320
that breaks, this would be the catalyst for you to say okay,
186
00:12:16,320 --> 00:12:20,430
this is probably going to be an optimal trade entry based on
187
00:12:20,430 --> 00:12:26,160
the higher timeframe chart of your profile. Okay, so for an
188
00:12:26,160 --> 00:12:31,710
example, let's just say that this is a monthly chart, and
189
00:12:31,710 --> 00:12:34,650
you're looking for a position trade. Okay, the monthly hits
190
00:12:34,650 --> 00:12:37,110
a key resistance level like this, and it comes down and
191
00:12:37,110 --> 00:12:40,380
takes out a short term low in the monthly we know now, that
192
00:12:40,380 --> 00:12:43,500
market structure has broken Okay, so we have a market
193
00:12:43,500 --> 00:12:48,840
structure shift right here. Okay. Now, we don't know what
194
00:12:48,840 --> 00:12:51,240
price is doing over here. This is all in the future. We're
195
00:12:51,240 --> 00:12:53,910
anticipating these types of events in terms of price action,
196
00:12:53,910 --> 00:12:57,090
but until we actually get there and starts trading, we can't
197
00:12:57,090 --> 00:13:00,930
deal with that yet. So it's all in anticipation. In our
198
00:13:00,930 --> 00:13:05,880
anticipated, anticipatory model, as far as our framework and
199
00:13:05,880 --> 00:13:09,360
thinking about price action, this is what we would expect to
200
00:13:09,360 --> 00:13:14,190
see once this structure has been broken. Okay. But as price
201
00:13:14,190 --> 00:13:18,840
starts to rally up, we don't anticipate seeing a
202
00:13:18,840 --> 00:13:22,410
breakthrough this resistance level. Okay? If we arrived at
203
00:13:22,410 --> 00:13:25,620
this as a possible resistance level, we would expect a
204
00:13:25,620 --> 00:13:28,050
retracement for normal trade entry, but then we would zoom
205
00:13:28,050 --> 00:13:32,880
in in this area right here. Okay, on a weekly timeframe to
206
00:13:32,880 --> 00:13:37,860
hone in on more key shorter term timeframe price levels. And
207
00:13:37,860 --> 00:13:44,430
then by zooming in, okay, we would possibly see a shorter
208
00:13:44,430 --> 00:13:49,950
term optimal trade entry or respective sell pattern to, you
209
00:13:49,950 --> 00:13:52,680
know, convince us even further that this is probably going
210
00:13:52,680 --> 00:13:56,520
to be a selling scenario. If we move down into a daily and
211
00:13:56,520 --> 00:13:59,970
see something even similar to that, okay, you would have all
212
00:14:00,000 --> 00:14:04,710
He's nesting confluences of implied resistance levels, once
213
00:14:04,710 --> 00:14:07,920
a higher time frame, Mark structure is broken down and then
214
00:14:07,920 --> 00:14:11,880
we would be able to position ourselves in sync with a top
215
00:14:11,880 --> 00:14:16,500
down approach with Mark structure, okay. And then as price
216
00:14:16,500 --> 00:14:20,460
starts to trade down, this is the gray area, all these areas
217
00:14:20,460 --> 00:14:24,750
where there's missing gaps. Okay, that's intentional. Okay.
218
00:14:25,110 --> 00:14:28,620
We don't know what's going to take place between the time
219
00:14:28,620 --> 00:14:31,620
where we see an entry point, and where we expect to see
220
00:14:31,620 --> 00:14:33,870
price get to in terms of our targets, and we'll talk more
221
00:14:33,870 --> 00:14:36,750
about that later on. But this is the gray area where you
222
00:14:36,750 --> 00:14:39,390
have to be comfortable with okay, because you don't know
223
00:14:39,390 --> 00:14:42,510
what's going to happen from your entry point. And your
224
00:14:42,510 --> 00:14:45,300
expected exit point. Okay. You don't know if it's going to
225
00:14:45,300 --> 00:14:47,400
go down there. Okay. You don't know if it's gonna reverse
226
00:14:47,400 --> 00:14:50,130
and take you out of the trade. Okay. But the overall
227
00:14:50,130 --> 00:14:54,690
framework, okay, or price structure. Okay. This is how
228
00:14:54,720 --> 00:14:59,280
market structure is built. Okay, this is a price rally and a
229
00:14:59,280 --> 00:15:05,340
decline Okay, we have consolidation. If we expect to see
230
00:15:05,340 --> 00:15:07,710
some kind of a rally in here, something's bullish that we
231
00:15:07,710 --> 00:15:10,890
would expect to support that as price starts to rally up,
232
00:15:11,520 --> 00:15:15,810
okay? We could be utilizing our mid level or short term
233
00:15:15,810 --> 00:15:22,110
level timeframes to to see. bullishness, okay, we want to
234
00:15:22,110 --> 00:15:26,580
see support being held resistance being broken. Okay? And
235
00:15:26,580 --> 00:15:29,340
every time price starts to pull back and retrace in here,
236
00:15:29,700 --> 00:15:32,580
the market structure concept that you would be utilizing it
237
00:15:32,580 --> 00:15:36,720
would be to simply look for optimal trade entries. Okay for
238
00:15:36,720 --> 00:15:40,290
buys, you'd be looking for reflections to buy, you'd be
239
00:15:40,290 --> 00:15:43,950
looking for type two trend following bullish scenario. So in
240
00:15:43,950 --> 00:15:47,460
other words in all this area here, you'd be looking for
241
00:15:49,500 --> 00:15:52,560
price finding support and resistance being broken. Okay,
242
00:15:52,560 --> 00:15:55,140
it's that it's that simple. That's the whole framework
243
00:15:55,530 --> 00:15:59,160
behind market structure, and its price rise up into another
244
00:15:59,160 --> 00:16:01,650
shorter term rate. Give me a term resistance level on here.
245
00:16:03,270 --> 00:16:07,110
Price, hopefully find some support, okay, but if it does
246
00:16:07,170 --> 00:16:11,730
start to break down, be comfortable with price coming back
247
00:16:11,730 --> 00:16:15,750
and blowing out previous lows in here, okay, there may be an
248
00:16:15,750 --> 00:16:19,650
important load it's taken place and trailing stop loss
249
00:16:19,650 --> 00:16:21,870
orders would be trailed up below that particular point.
250
00:16:22,290 --> 00:16:25,500
Okay, so as price dips back down all that's going to do is
251
00:16:25,500 --> 00:16:29,520
give you another opportunity to get long. Okay, now again
252
00:16:29,520 --> 00:16:31,830
let's think for a moment this is the higher timeframe
253
00:16:31,830 --> 00:16:36,390
premise okay this is the highest timeframe chart when we
254
00:16:36,390 --> 00:16:39,060
start seeing this consolidation here and we see the higher
255
00:16:39,060 --> 00:16:41,940
level resistance though because these are all known in
256
00:16:41,940 --> 00:16:45,210
advance this is why we have support resistance studies done.
257
00:16:45,720 --> 00:16:48,600
This is all part of our top down analysis seeing where price
258
00:16:48,600 --> 00:16:52,290
may be reaching for. So if we start seeing price rally up in
259
00:16:52,290 --> 00:16:55,860
here and then consolidate again. And this is another higher
260
00:16:55,860 --> 00:16:59,130
level key resistance level if price continues to maintain
261
00:16:59,130 --> 00:17:03,180
support breaks above all of these short term highs in here.
262
00:17:04,650 --> 00:17:07,920
The market structure implies that we could possibly see a
263
00:17:07,920 --> 00:17:11,490
leg from this low or whatever low would form back here to
264
00:17:11,490 --> 00:17:16,170
this high duplicated on a retracement here from this low to
265
00:17:16,170 --> 00:17:25,590
this high. The same thing could be said with market declines
266
00:17:25,590 --> 00:17:30,360
and reversals going along. Every time we see consolidation,
267
00:17:30,780 --> 00:17:35,190
consolidations, you want to study these for shorter term,
268
00:17:35,220 --> 00:17:39,690
more dynamic support resistance levels. These areas are more
269
00:17:40,080 --> 00:17:44,070
easily tradable because they have discernible price levels.
270
00:17:44,070 --> 00:17:48,240
They're very clear. We don't know how it's going to take
271
00:17:48,450 --> 00:17:51,600
price. From these consolidations to the next consolidation.
272
00:17:51,600 --> 00:17:55,380
We don't know that we anticipate that gray area that's
273
00:17:55,380 --> 00:17:57,930
missing these little pieces of market structure that's
274
00:17:57,930 --> 00:18:01,350
missing. I left that out because I want you to think like
275
00:18:01,350 --> 00:18:06,480
this. Okay? It's, it's a little confusing Now, I understand.
276
00:18:06,870 --> 00:18:12,210
But if you apply this same general I don't want to say,
277
00:18:12,480 --> 00:18:16,560
profile, but this diagram, okay, in other words in terms of
278
00:18:16,560 --> 00:18:21,750
how I have price lows, illustrated here. If you look at how
279
00:18:21,750 --> 00:18:26,550
price declines actually materialize, you'll start to see
280
00:18:26,550 --> 00:18:29,400
these lows form like this and inside of those
281
00:18:29,400 --> 00:18:34,050
consolidations, and in every swing loaded forms, there's
282
00:18:34,050 --> 00:18:38,250
going to be discernible optimal trade entries or reflection
283
00:18:38,250 --> 00:18:43,110
patterns, or generally fractal patterns. Okay? So you would
284
00:18:43,110 --> 00:18:47,460
apply these concepts, okay, with all the other concepts
285
00:18:47,460 --> 00:18:53,250
we've previously discussed. But looking at obviously, a
286
00:18:53,250 --> 00:18:56,790
higher level key support level down here as a catalyst.
287
00:18:57,150 --> 00:19:01,680
Okay. So as price moves from UK validation down into a new
288
00:19:01,680 --> 00:19:05,100
consolidation, much in the same capacity we just saw with
289
00:19:05,100 --> 00:19:08,490
the bullish move, reaching up into a higher level resistance
290
00:19:08,490 --> 00:19:12,720
level, we could be seeing a consolidation in here with this
291
00:19:12,720 --> 00:19:15,990
higher level support level down here. This would be where
292
00:19:15,990 --> 00:19:19,680
price may be reaching for. So if it's consolidating here, we
293
00:19:19,680 --> 00:19:23,340
could look for a move from whatever high forms here to this
294
00:19:23,340 --> 00:19:27,510
low, okay? duplicated from this high or whatever high forms
295
00:19:27,510 --> 00:19:32,340
in this area down to this low. Okay, so, while this diagram
296
00:19:32,340 --> 00:19:37,230
is fragmented, okay, think of in terms of the market maker
297
00:19:37,230 --> 00:19:40,080
profiles that I just recently shared with you guys this
298
00:19:40,080 --> 00:19:45,030
year. You see that same premise here as well. I don't need
299
00:19:45,030 --> 00:19:46,830
to draw the lines in here. You can actually probably
300
00:19:46,860 --> 00:19:50,760
remember by the way the profile was given to you. You can
301
00:19:50,760 --> 00:19:54,780
actually see it in here. Okay. So as prices engineer to go
302
00:19:54,780 --> 00:19:59,160
lower down into a support level, ultimately to trade higher.
303
00:19:59,610 --> 00:20:03,510
This is building blocks that we work with. Okay? Now,
304
00:20:04,680 --> 00:20:07,500
because we have to live in the gray area and not
305
00:20:09,150 --> 00:20:13,680
expect a simple black and white premise to trading, when we
306
00:20:13,680 --> 00:20:16,380
see consolidation here and price move down to a new area of
307
00:20:16,380 --> 00:20:18,690
consolidation and price moves down to a new cup area
308
00:20:18,690 --> 00:20:22,590
consolidation. And then we have short term breaks on market
309
00:20:22,590 --> 00:20:24,600
structure. Okay, and then once we have a shift in market
310
00:20:24,600 --> 00:20:27,210
structure right here, as price trades down then that support
311
00:20:27,210 --> 00:20:30,030
level. Again, this is all assuming this is the highest level
312
00:20:30,030 --> 00:20:33,450
of your three timeframes that you're trading with for your
313
00:20:33,450 --> 00:20:37,290
particular trading model. When you see this shift in market
314
00:20:37,290 --> 00:20:40,350
structure here, we would anticipate seeing a bullish move
315
00:20:40,350 --> 00:20:46,380
higher. But here's where we enter a new level of gray. When
316
00:20:46,380 --> 00:20:49,920
we move into this new consolidation in here, this may not
317
00:20:49,920 --> 00:20:53,550
always translate into even higher prices going out like we
318
00:20:53,550 --> 00:20:57,420
have here implied it could be just reaching up to go back to
319
00:20:57,420 --> 00:21:00,900
this range from this old high to this low Member inside the
320
00:21:00,900 --> 00:21:04,740
range concepts, okay? So you have to have that in mind. So
321
00:21:04,740 --> 00:21:08,820
that's why if you're going to be getting long down here they
322
00:21:08,820 --> 00:21:13,200
expect to see some type of profit taking here. Right? And
323
00:21:13,200 --> 00:21:16,410
you'd be able to see that utilizing your mid level chart.
324
00:21:16,770 --> 00:21:20,940
Okay? For your swing projections. Okay, we'll talk about
325
00:21:20,940 --> 00:21:25,170
that more as we go on. But generally as you see price come
326
00:21:25,170 --> 00:21:27,840
down in here every time price retraces and gives you a new
327
00:21:27,840 --> 00:21:30,480
optimal trade entries. That's what you're looking for. You
328
00:21:30,480 --> 00:21:34,740
want to see price holding support, breaking resistance,
329
00:21:35,010 --> 00:21:40,410
okay, on this side, support level being found. But as we're
330
00:21:40,440 --> 00:21:42,960
trading down into that support level, we're anticipating
331
00:21:43,170 --> 00:21:47,520
market structure to break lows and find resistance, break
332
00:21:47,520 --> 00:21:52,020
close, find resistance, break lows, find resistance, okay?
333
00:21:52,260 --> 00:21:55,500
So every new consolidation, if we're expecting price
334
00:21:55,500 --> 00:21:59,310
reaching down to our higher level, support level, okay, on a
335
00:21:59,310 --> 00:22:02,580
highest level Level chart. That's why we do our analysis on
336
00:22:02,580 --> 00:22:04,380
the highest level because you want to see where price is
337
00:22:04,380 --> 00:22:08,730
probably reaching for. And by seeing where the highest level
338
00:22:08,730 --> 00:22:12,060
chart in our particular trading model is reaching for.
339
00:22:13,230 --> 00:22:15,180
Again, we don't know for certain that they're always going
340
00:22:15,180 --> 00:22:18,060
to get there. But if you look in these higher level charts,
341
00:22:18,540 --> 00:22:21,030
it's going to give you the highest probability in terms of
342
00:22:21,030 --> 00:22:24,720
success. If price doesn't get to these particular points and
343
00:22:24,720 --> 00:22:30,300
we start seeing early market shifts in market structure,
344
00:22:31,020 --> 00:22:33,840
this could be a catalyst for you know, another type of
345
00:22:33,840 --> 00:22:37,380
trade, okay, we could possibly get along in here and maybe
346
00:22:37,380 --> 00:22:40,260
reach up into the range from the high to this low here, that
347
00:22:40,260 --> 00:22:45,270
may be a means of profitability should be a good reward to
348
00:22:45,270 --> 00:22:49,620
risk scenario here, okay, you three to one could still exist
349
00:22:49,620 --> 00:22:55,350
within that fine, that framework of price action, okay. But
350
00:22:55,380 --> 00:22:59,490
again, even if that happens, we could still take some short
351
00:22:59,490 --> 00:23:03,750
term trades. In here, but that may be a very, very short
352
00:23:03,750 --> 00:23:10,140
term bias, only taking out to a higher level bias to get
353
00:23:10,140 --> 00:23:14,580
lower support levels here taken out, okay, in other words,
354
00:23:14,940 --> 00:23:17,670
it used to be you're gonna have to blend some concepts here,
355
00:23:17,730 --> 00:23:22,650
the inside the range concepts, simply looking at lower lows
356
00:23:22,650 --> 00:23:26,340
and lower highs. Okay, if we do get a short term bounce in
357
00:23:26,340 --> 00:23:32,160
here between the high this formed here and the low here this
358
00:23:32,160 --> 00:23:34,530
could be creating another trade entry to get that
359
00:23:34,530 --> 00:23:37,290
fulfillment of this lower level support level down here.
360
00:23:43,080 --> 00:23:48,300
Now, again, we've seen this diagram before, assuming that we
361
00:23:48,300 --> 00:23:53,550
have a high up in here reaching into resistance. As price
362
00:23:53,550 --> 00:23:56,820
breaks this short term low here the market structure is
363
00:23:56,820 --> 00:24:01,020
broken. So as price starts to retrace ever Retired retraces
364
00:24:01,020 --> 00:24:05,160
we're looking for new selling opportunities. But if we see a
365
00:24:05,160 --> 00:24:08,550
previous swing as we see here, see this price swing here?
366
00:24:09,570 --> 00:24:16,350
Okay, if this levels taken out here, if we get a retracement
367
00:24:16,500 --> 00:24:20,190
or another additional sell signal. This is where we use
368
00:24:20,310 --> 00:24:24,120
swing projections, just on price we're not using Fibonacci
369
00:24:24,150 --> 00:24:28,770
you can, but just looking at simple price action alone, this
370
00:24:28,770 --> 00:24:32,880
low to high once it's broken, you can start taking this same
371
00:24:32,910 --> 00:24:38,280
measurable swing from this point here down to that same
372
00:24:38,280 --> 00:24:42,030
level and projected lower. Okay, and you get somewhere in
373
00:24:42,030 --> 00:24:45,570
this area here. Now I purposely allowed the diagram to be a
374
00:24:45,570 --> 00:24:50,670
little bit farther because I teach to exit on the trade
375
00:24:50,670 --> 00:24:55,260
before the actual objective is met. Okay, so every time we
376
00:24:55,260 --> 00:24:59,700
see a broken swing, okay, this is a swing that's broken
377
00:24:59,700 --> 00:25:02,430
here. Low versus low here or whatever low it would have
378
00:25:02,430 --> 00:25:06,420
formed in here. I'm assuming that you can see this as this
379
00:25:06,510 --> 00:25:11,880
as a swing when it's broken right here, we went below here,
380
00:25:12,600 --> 00:25:16,590
if we retrace back into it, okay, I'm also purposely drew
381
00:25:16,590 --> 00:25:19,830
this a little bit past what would be expected as resistance.
382
00:25:21,990 --> 00:25:26,430
I've purposely allowed this to move beyond this low here to
383
00:25:26,430 --> 00:25:31,560
illustrate how support resistance can be. Gray as well, it's
384
00:25:31,560 --> 00:25:33,810
not black and white, you're going to have to allow some
385
00:25:33,810 --> 00:25:36,900
flexibility with price. So when it starts to pull back
386
00:25:36,900 --> 00:25:39,990
deeper, okay, this still could set up the optimal trade
387
00:25:39,990 --> 00:25:43,830
entry. Okay, and while this isn't the exact level price was
388
00:25:43,890 --> 00:25:48,180
able to stave off a rally, it still was working within the
389
00:25:48,180 --> 00:25:52,350
previous range here and this pie here as well. So we're
390
00:25:52,350 --> 00:25:57,390
still within a bearish market structure. So don't be lulled
391
00:25:57,390 --> 00:25:59,730
into thinking this is going to be a long to go higher.
392
00:26:00,000 --> 00:26:02,520
Assuming again this is a higher level of resistance level.
393
00:26:04,110 --> 00:26:07,590
And again, every little short term retracement here could be
394
00:26:07,680 --> 00:26:11,280
a catalyst for an additional entry using our smallest of the
395
00:26:11,280 --> 00:26:15,030
three timeframes. Again this is all modeling off of the
396
00:26:15,030 --> 00:26:18,240
highest timeframe, okay and then assuming once we get this
397
00:26:18,240 --> 00:26:22,890
broken down this swing low here broken we could utilize the
398
00:26:22,890 --> 00:26:27,780
mid level chart for additional entries and or managing of a
399
00:26:27,780 --> 00:26:30,870
position that's already been assumed based on the highest of
400
00:26:30,870 --> 00:26:35,580
the three timeframes. Now as price also breaks down these
401
00:26:35,670 --> 00:26:39,060
swings, this is known as a swing up once it's broken, okay,
402
00:26:39,060 --> 00:26:43,170
this is an engineered swing, okay. You see this in price
403
00:26:43,170 --> 00:26:46,860
action all the time. Okay, it's a measured move, very
404
00:26:46,860 --> 00:26:51,300
simple. taken this low to this high, whatever that range is
405
00:26:51,360 --> 00:26:54,990
subtracted from that same point here. And projected lower.
406
00:26:55,440 --> 00:27:00,630
Okay. That's the measured swing. Here is a measured Leg
407
00:27:00,720 --> 00:27:04,590
move, you have the high down to a low here and price starts
408
00:27:04,590 --> 00:27:07,980
to retrace in here. We could see this as an intermediate
409
00:27:07,980 --> 00:27:13,080
term price swing, okay, or price leg. So we have a
410
00:27:13,080 --> 00:27:16,890
measurable swing here that we can use for projections. Then
411
00:27:16,890 --> 00:27:20,910
we also have a measurable lake. Okay, so we had the first
412
00:27:20,910 --> 00:27:25,380
leg and price down here and we retrace back utilizing the
413
00:27:25,380 --> 00:27:28,710
framework that's based on this swing up. Okay, so we're
414
00:27:28,710 --> 00:27:33,780
blending two concepts here, a swing that's broken. Okay. And
415
00:27:33,780 --> 00:27:36,750
within a bearish market structure, then we also have a
416
00:27:36,750 --> 00:27:41,040
retracement back into a previous support broken it should
417
00:27:41,040 --> 00:27:45,540
act as resistance. Okay. And notice how this low here I
418
00:27:45,540 --> 00:27:48,390
tried it more or less imply that price could be reaching for
419
00:27:48,390 --> 00:27:52,140
even a shorter term support that's broken now as resistance.
420
00:27:52,140 --> 00:27:55,230
So what might look real clear and discernible on the charts.
421
00:27:55,290 --> 00:27:59,850
It may not be as clear cut as that but we would expect this
422
00:27:59,850 --> 00:28:05,010
to intermediate term retracement for a new leg down. And
423
00:28:05,010 --> 00:28:07,440
that's when you would expect to see the high too low here on
424
00:28:07,440 --> 00:28:11,130
this leg repeated and repeated and protected from this
425
00:28:11,280 --> 00:28:16,020
highway reforms here. Down here and that would look similar
426
00:28:17,010 --> 00:28:21,720
to what we'd expect when you see me term highs and lows. And
427
00:28:21,720 --> 00:28:23,190
the term high is obviously
428
00:28:23,220 --> 00:28:28,530
a high that has lower highs on either side of it. Okay, and
429
00:28:28,530 --> 00:28:33,480
any near term low is a low that has two higher lows on
430
00:28:33,480 --> 00:28:37,080
either side of it. So it's very easy to see and simply
431
00:28:37,380 --> 00:28:41,580
looking at your candles and your bars when your respective
432
00:28:41,580 --> 00:28:45,750
timeframes. When you see these, note them, okay? And by
433
00:28:45,750 --> 00:28:49,410
noting them. You'll have whatever ways you want to have it.
434
00:28:50,250 --> 00:28:53,220
You know, I'm delineating and denoting that with these blue
435
00:28:53,220 --> 00:28:55,890
circles here. It could be anything on your charts, you could
436
00:28:55,890 --> 00:28:59,550
have stars, you could, you could just you type in me and
437
00:28:59,550 --> 00:29:01,890
term hi Whatever you can put the little arrows on it,
438
00:29:02,400 --> 00:29:05,490
whatever it is that you use to identify that that's your way
439
00:29:05,490 --> 00:29:08,520
of doing it. But it's important to understand where they're
440
00:29:08,520 --> 00:29:13,320
at. And when they start to nest out like this, okay? You can
441
00:29:13,320 --> 00:29:16,950
classify enemy a term to now long term because if we have
442
00:29:17,670 --> 00:29:21,060
lower highs on either side of it, okay, this would classify
443
00:29:21,060 --> 00:29:25,800
this as a long term high, that would also allow you to
444
00:29:25,800 --> 00:29:30,540
expect to see much longer term price swings, okay? So by
445
00:29:30,570 --> 00:29:35,550
nesting out and marking off your swing highs and swing lows
446
00:29:35,610 --> 00:29:39,090
on your respective timeframes, you start to build a
447
00:29:39,090 --> 00:29:41,730
framework that's needed to be able to discern if you're in
448
00:29:41,730 --> 00:29:45,150
an intermediate term, or short term price swing in within
449
00:29:45,150 --> 00:29:51,060
your market structure. Now that lag that we were talking
450
00:29:51,060 --> 00:29:54,390
about earlier, can be seen here by having that immediate
451
00:29:54,390 --> 00:29:59,010
term High Noon ID. So this is a medium term, price leg, and
452
00:29:59,010 --> 00:30:02,250
then here's your immediate term. retracement. Okay. And then
453
00:30:02,250 --> 00:30:05,250
you would see, obviously the next leg down would be
454
00:30:05,250 --> 00:30:08,100
replicated. So you can see the range between this low to
455
00:30:08,100 --> 00:30:12,420
high is exactly what you see here, causing you to expect or
456
00:30:12,420 --> 00:30:16,320
anticipate price movement back here. If you're in a trade
457
00:30:16,320 --> 00:30:19,140
still, once you retraced you can expect to hold on to that
458
00:30:19,140 --> 00:30:21,360
trade to get back down to these levels here, which would
459
00:30:21,360 --> 00:30:24,570
obviously hopefully be a higher level support level to also
460
00:30:24,780 --> 00:30:28,350
converge and have a confluence of reasons to expect to take
461
00:30:28,350 --> 00:30:29,220
some profits there.
462
00:30:35,580 --> 00:30:39,150
Now having all these things in the forefront of your mind
463
00:30:39,150 --> 00:30:43,830
and having specific price legs and price swings, and how
464
00:30:43,830 --> 00:30:48,930
they nest together, it's important to understand that the
465
00:30:48,960 --> 00:30:51,930
framework of your market structure is derived from the
466
00:30:51,930 --> 00:30:54,360
highest level of the three timeframes you're trading with.
467
00:30:54,990 --> 00:30:57,690
That's where you're, you're the framework or the or the
468
00:30:57,690 --> 00:31:03,030
basis of your trade is built upon Your mid level chart is
469
00:31:03,030 --> 00:31:08,400
used to zero down into a smaller timeframe expecting to find
470
00:31:09,360 --> 00:31:11,850
support resistance levels that may not be discernible and
471
00:31:11,850 --> 00:31:15,210
your highest timeframe, then your lowest timeframe is used
472
00:31:15,210 --> 00:31:17,100
for your entry. And we're gonna be talking about that
473
00:31:17,100 --> 00:31:20,640
specifically here, assuming we've built the premise of
474
00:31:20,670 --> 00:31:24,990
market structure, and assuming that it's bullish, okay,
475
00:31:25,320 --> 00:31:27,930
everything we're talking about here would be obviously
476
00:31:27,930 --> 00:31:31,110
reverse for selling scenarios, but assuming we have a
477
00:31:31,110 --> 00:31:34,920
bullish market structure, okay, we're a swing trader, let's
478
00:31:34,920 --> 00:31:39,360
say for a moment that our highest timeframes suggests that
479
00:31:39,360 --> 00:31:42,000
we have a bullish market structure underway. We've traded
480
00:31:42,000 --> 00:31:47,100
off of a higher level, support level and price has given us
481
00:31:47,100 --> 00:31:50,820
a broken market structure to the upside. Okay, so there's
482
00:31:50,820 --> 00:31:53,310
been a market structure shift, short term highs that been
483
00:31:53,310 --> 00:31:57,600
broken on our highest level timeframe chart. Our mid level
484
00:31:57,600 --> 00:32:01,290
timeframe has allowed us to to zero and to find a key
485
00:32:01,290 --> 00:32:05,880
support resistance level. Now, we have this higher level key
486
00:32:05,880 --> 00:32:08,220
support resistance level, that's also converging with our
487
00:32:08,220 --> 00:32:11,760
mid level support resistance level. Okay, and that same
488
00:32:11,940 --> 00:32:15,540
support resistance level may be a confluence of maybe a be a
489
00:32:15,570 --> 00:32:19,710
pattern that overlaps with that specific that level. Okay.
490
00:32:19,740 --> 00:32:29,550
And we now have a bias, okay, this bias is bullish, it does
491
00:32:29,550 --> 00:32:33,570
not mean every single day you're going to get a trade that's
492
00:32:33,570 --> 00:32:36,720
going to materialize as a bullish move and see
493
00:32:36,720 --> 00:32:40,740
profitability. If it was if it was just that simple guys,
494
00:32:40,770 --> 00:32:45,090
everybody would be multimillionaires and be we'd be we we'd
495
00:32:45,090 --> 00:32:49,530
all be Warren Buffett's. And super rich. So obviously, you
496
00:32:49,530 --> 00:32:54,120
know, it's not that easy. You have to have some discernment
497
00:32:54,120 --> 00:32:58,530
and allow for some, you know, failure because it's going to
498
00:32:58,530 --> 00:33:02,400
happen but as soon as We have that that premise, okay, our
499
00:33:02,400 --> 00:33:05,730
bias is to buy, it doesn't mean that traders can't make
500
00:33:05,730 --> 00:33:10,140
money going short this specific day or timeframe. Okay, it
501
00:33:10,140 --> 00:33:14,520
just means that you are going to stick to being a bull at
502
00:33:14,520 --> 00:33:19,830
this particular day or particular timeframe. Okay. So with
503
00:33:19,830 --> 00:33:22,650
that, with that in mind, we always go back to our key
504
00:33:22,650 --> 00:33:26,460
premise of trading within kill zones. Okay? So you want to
505
00:33:26,460 --> 00:33:29,880
be doing your entries in your kill zone times, London open,
506
00:33:30,120 --> 00:33:34,290
New York open, London close or Asia. Okay, but assuming we
507
00:33:34,290 --> 00:33:37,530
have already arrived at our time of day when we're going to
508
00:33:37,530 --> 00:33:41,490
be trading, okay. We already understand that the kill zone
509
00:33:41,490 --> 00:33:45,180
when it's going to begin. We already have our key support
510
00:33:45,180 --> 00:33:48,540
resistance level already identified, and we know where price
511
00:33:48,540 --> 00:33:51,030
should get to before we do anything, and that's going to be
512
00:33:51,780 --> 00:33:53,970
basically this little area right here. So when we're going
513
00:33:53,970 --> 00:33:57,390
to be seeing price hopefully, at some point, move down to
514
00:33:57,390 --> 00:34:00,690
that level here. This is our action point. This is where we
515
00:34:00,690 --> 00:34:04,740
take action, we do the entry here. Now, it could be on a
516
00:34:04,740 --> 00:34:06,960
limit basis, or it could be a market order, but we're
517
00:34:06,960 --> 00:34:11,100
utilizing time price theory. Okay. So this is what it looks
518
00:34:11,100 --> 00:34:16,260
like in in your mind. There's nothing happening yet. you
519
00:34:16,260 --> 00:34:20,670
anticipate these events unfolding within a specific time of
520
00:34:20,670 --> 00:34:25,590
day with a specific bias in mind, okay? You want to see
521
00:34:25,590 --> 00:34:29,100
these things line up? And I think what happens is you guys
522
00:34:29,130 --> 00:34:31,560
send me emails you talk about on the internet posting on
523
00:34:31,560 --> 00:34:34,230
baby pips forums. You know, I don't know what the bias is
524
00:34:34,230 --> 00:34:39,090
for today. here's, here's the secret every day, the bias is
525
00:34:39,090 --> 00:34:42,390
both directions. Every day the bias is both directions.
526
00:34:43,290 --> 00:34:46,650
Think about that. There's traders making money going long
527
00:34:46,650 --> 00:34:51,720
and short that day. But you have to decide on what it is
528
00:34:51,720 --> 00:34:53,850
that you're trading based on your timeframe and your
529
00:34:53,850 --> 00:34:56,940
profile. Okay, as a trader, are you short term trader? swing
530
00:34:56,940 --> 00:35:00,540
trader Are you a position trader and you're looking for The
531
00:35:00,540 --> 00:35:05,070
bias that you're holding to line up with price action, okay,
532
00:35:05,220 --> 00:35:08,940
you can't force price action to do what you want it to do,
533
00:35:09,150 --> 00:35:13,020
you can only get yourself in sync with what price may be
534
00:35:13,020 --> 00:35:16,170
doing and allowing you a ride. Okay, so with that
535
00:35:16,170 --> 00:35:16,740
assumption,
536
00:35:16,980 --> 00:35:21,210
we're looking at price here with the bullish premise that we
537
00:35:21,210 --> 00:35:23,970
will be expecting to see higher prices if we get down to
538
00:35:23,970 --> 00:35:27,150
this support level. Okay, so we've established that the
539
00:35:27,150 --> 00:35:29,910
higher timeframe of the three timeframes we use for market
540
00:35:29,910 --> 00:35:34,980
structure study is now bullish. Okay. We assumed that we
541
00:35:34,980 --> 00:35:39,000
have a very respectable support level down here. Okay. So if
542
00:35:39,000 --> 00:35:41,310
price trades back down to that level within a kill zone,
543
00:35:41,670 --> 00:35:44,070
we're going to be taking action here to buy, okay, and all
544
00:35:44,070 --> 00:35:47,340
we simply do at that point is you wait, you wait until the
545
00:35:47,340 --> 00:35:50,220
kill zone starts. And when price gets to a specific point,
546
00:35:50,490 --> 00:35:52,860
you use whatever entry technique or concept you're going to
547
00:35:52,860 --> 00:35:55,590
be utilizing for your trade entry could be optimal trade
548
00:35:55,590 --> 00:36:00,480
entry. It could be reflection, it could be a Grail. It could
549
00:36:00,480 --> 00:36:04,260
be a stinger it could be any, any one of the trading
550
00:36:04,260 --> 00:36:06,720
patterns that you're utilizing, but it's happening at a key
551
00:36:06,720 --> 00:36:10,200
support resistance level with the higher time frame of the
552
00:36:10,200 --> 00:36:13,440
three front timeframes you use for market structure, giving
553
00:36:13,440 --> 00:36:16,440
you your bias. So when you have that this is your action
554
00:36:16,440 --> 00:36:19,500
plan, this is what you do. You don't do anything else. Okay?
555
00:36:19,860 --> 00:36:22,710
This could be a sell pattern here, okay, for someone that's
556
00:36:22,710 --> 00:36:26,370
very short term trader, okay, and trades down in they,
557
00:36:26,400 --> 00:36:29,430
they've made money from this point here to here. That's not
558
00:36:29,430 --> 00:36:35,460
your trade. Okay? So don't try to force more out of the
559
00:36:35,460 --> 00:36:39,000
concept and it's intended, okay, you're just simply looking
560
00:36:39,000 --> 00:36:44,400
for a bias for your style of trading. Okay? It doesn't mean
561
00:36:44,490 --> 00:36:46,710
that you're going to be right all the time. Okay. So take
562
00:36:46,710 --> 00:36:49,470
that out of the equation. All you're doing is looking to get
563
00:36:49,470 --> 00:36:52,470
yourself in sync with whatever price action is doing, based
564
00:36:52,500 --> 00:36:55,200
on your premise or your style of trading.
565
00:37:00,599 --> 00:37:05,399
All right. Obviously, this is a very simple approach to
566
00:37:05,399 --> 00:37:09,449
dealing with directional bias. But it's meant to help you
567
00:37:09,449 --> 00:37:13,979
avoid the complication. That tends to happen with traders,
568
00:37:13,979 --> 00:37:16,709
okay? And it's usually the new traders, they try to add all
569
00:37:16,709 --> 00:37:20,429
these things to it and squeeze all the tools into giving
570
00:37:20,429 --> 00:37:23,879
them a directional bias with the expectation falsely, I'll
571
00:37:23,879 --> 00:37:26,999
be it, that they're going to always know what direction the
572
00:37:26,999 --> 00:37:29,729
mark is gonna move every single day. And I'm going to tell
573
00:37:29,729 --> 00:37:33,509
you guys, I've been doing this almost 20 years, and I don't
574
00:37:33,539 --> 00:37:38,219
get it right every single day. Okay, you know, the secret is
575
00:37:38,219 --> 00:37:42,989
to my trading. I simply wait until everything lines up that
576
00:37:42,989 --> 00:37:46,709
I like to see where the majority of all my tools, not all of
577
00:37:46,709 --> 00:37:49,679
them the majority of the things that I'd like to see, based
578
00:37:49,679 --> 00:37:53,969
on my understanding what markets suggesting to me in other
579
00:37:53,969 --> 00:37:58,469
words, what profile and are we overall ripe for reversal?
580
00:37:58,649 --> 00:38:01,919
Are we in a trending condition, are we in a consolidation
581
00:38:01,919 --> 00:38:04,469
area where, you know, I don't want to be taking any kind of
582
00:38:05,759 --> 00:38:08,339
trading, you know, with the expectation that we're going to
583
00:38:08,339 --> 00:38:12,449
have a trending type of event unfold, because we're going to
584
00:38:12,449 --> 00:38:16,379
be working within a large consolidation. I use that as my
585
00:38:17,459 --> 00:38:20,579
building blocks. And then by using the market profiling to
586
00:38:20,579 --> 00:38:23,789
give me the initial clue as to where we may be trading, then
587
00:38:23,789 --> 00:38:26,189
I've started looking at actual individual market structure
588
00:38:26,189 --> 00:38:28,949
concepts on the three timeframes that I use for whatever
589
00:38:28,949 --> 00:38:33,299
type of trading I'm doing at the time. Because I am dynamic,
590
00:38:33,299 --> 00:38:37,739
I move from one timeframe or profile trading to another one
591
00:38:37,739 --> 00:38:41,159
week, I may be simply a day trader. In other weeks, I'll be
592
00:38:41,279 --> 00:38:45,509
short term trader. And I wish there's a way for me to teach
593
00:38:45,509 --> 00:38:50,909
that premise from moving from one dynamic to another. I
594
00:38:50,909 --> 00:38:55,319
can't, so that may be disappointing to you. But this is a
595
00:38:55,319 --> 00:38:59,069
limitation on me as a mentor, I just I don't know how to
596
00:38:59,069 --> 00:39:02,879
communicate that But I can give you concepts and approaches
597
00:39:02,879 --> 00:39:06,149
to do specific styles of trading. And you just have to wait
598
00:39:06,149 --> 00:39:09,809
for the opportunities for price action gives you that sweet
599
00:39:09,809 --> 00:39:14,519
spot in terms of being able to apply it. Okay? So by
600
00:39:14,519 --> 00:39:17,789
selecting a directional bias does not guarantee
601
00:39:17,789 --> 00:39:20,669
profitability, it's very important to understand that nor
602
00:39:20,669 --> 00:39:23,369
does it guarantee accuracy in either your trade direction
603
00:39:23,369 --> 00:39:27,989
and or your trade results. One traders bias may be bullish,
604
00:39:28,229 --> 00:39:31,379
okay. And they're looking for buys in that may exist inside
605
00:39:31,379 --> 00:39:34,739
the realm of another traders sell bias. They both can be
606
00:39:34,739 --> 00:39:38,879
correct and make money and even see both their respective
607
00:39:38,879 --> 00:39:43,709
profit objectives achieved. They both can be wrong and make
608
00:39:43,709 --> 00:39:46,649
money despite their respective profit objectives not being
609
00:39:46,649 --> 00:39:51,089
achieved. Again, it's not being about being, quote unquote,
610
00:39:51,089 --> 00:39:55,289
correct. It's about being profitable. However, they both
611
00:39:55,289 --> 00:39:57,509
could simply lose money and neither trade idea come to
612
00:39:57,509 --> 00:40:00,899
fruition. There is no black and white It's very important to
613
00:40:00,899 --> 00:40:05,279
understand that as a trader, you must enter the gray and be
614
00:40:05,279 --> 00:40:08,579
comfortable with the less than perfect visibility trades
615
00:40:08,579 --> 00:40:13,289
with the the foresight that you're expecting don't exist.
616
00:40:13,679 --> 00:40:16,979
Nobody has a crystal ball. I don't have it. I'm still
617
00:40:16,979 --> 00:40:21,419
trading on the probabilities, not the perfect scenario.
618
00:40:21,569 --> 00:40:26,909
There's no perfect scenario, okay? You, as a trader will see
619
00:40:26,909 --> 00:40:29,549
trades materialize that will provide you plenty of profit
620
00:40:29,549 --> 00:40:34,499
taking potential. live there. Don't expect 100% it's not
621
00:40:34,499 --> 00:40:37,709
going to happen. Okay, I guarantee you. The only thing 100%
622
00:40:37,709 --> 00:40:40,709
is going to happen is you're going to go nuts, expecting an
623
00:40:40,709 --> 00:40:46,739
impossibility. Find your timeframe as a trader, determine
624
00:40:46,739 --> 00:40:50,129
the market structure given for that timeframe. Trade within
625
00:40:50,129 --> 00:40:53,549
that respective market structure and perform your targeting
626
00:40:53,609 --> 00:40:56,999
on the highest end mid level timeframes. And I promise you,
627
00:40:57,269 --> 00:41:01,049
you'll have more than enough trades laid at your feet. But
628
00:41:01,049 --> 00:41:03,989
it's not about trading every day. And it's not about
629
00:41:04,379 --> 00:41:08,039
capturing 1000 pips a month, okay? It's about consistently
630
00:41:08,039 --> 00:41:12,089
harvesting profits out of the marketplace, keeping risk low
631
00:41:12,539 --> 00:41:16,679
and your action level low. Don't try to trade a whole lot.
632
00:41:16,859 --> 00:41:20,519
Keep your trading controlled. That way you can control your
633
00:41:20,519 --> 00:41:24,869
emotions. your expectations will be kept realistic and
634
00:41:24,869 --> 00:41:27,179
you're going to live comfortably in the gray