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Version 1.1 by Drunk Monkey on 2020-11-20 15:55
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3 ICT: Okay, folks, essentials to market structure. And this
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7 module is going to be really based upon the premise of
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11 looking towards helping you educate yourself in determining
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15 trade direction. This is probably one of the most
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19 reoccurring email inquiries and posts that you see in the
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23 forums on baby pips directed to me. It's my goal, obviously,
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27 to share a little further amplification on some of the
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31 concepts that I use in determining trade direction. And
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35 hopefully, this will be insightful for you.
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39 But what do
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43 we do when we sit down from the charts what's the primary
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47 function as a trader Well, you as a forex trader, you want
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51 to be finding your way through price. And as a new trader, I
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55 can understand how daunting this task may be because there's
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59 so many different timeframes, you have your monthly, weekly,
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63 daily, four hour, one hour, 15 minutes or five minutes or
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67 one minute chart, you have tick charts, all these different
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71 timeframes, it's very bewildering sometimes, if you
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75 understand really what it is you'd be doing and breaking it
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79 down breaking down price in a uniform structured way. So the
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83 first thing I'm going to really counsel you on is your
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87 primary objective is to know your timeframe that you're
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91 trading, okay. And it gets back to what type of trader
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95 you're going to be, are you going to be a position trader,
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99 you're gonna be a swing trader, a short term trader Are you
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103 gonna be a day trader or a scalper? I can't teach you how to
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107 find the correct style trader that's within you. That's all
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111 part of your personal makeup. So this module much in the
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115 same capacity my other modules have been They're going to
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119 speak in general terms, okay? But it's going to give you
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123 enough insight for you to be able to determine what it is
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127 that you need to be focusing on for you to find the most
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131 optimal way of trading for you yourself, okay? Because each
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135 of us are going to be different. As you grow and you mature
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139 as a trader, you may be multi timeframe based in terms of
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143 trading, and alerts. I consider myself a dynamic trader
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147 simply because I can trade any one of these timeframes. Now,
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151 I excel in the short term to swing trading area, but I can
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155 day trade and I can scalp but I prefer not to. It would be
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159 my advice to you is if you can try to work within the short
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163 term to day trading in the beginning because it's going to
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167 give you the most immediate feedback and it's going to give
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171 you the confidence you need to be sticking to a plan because
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175 obviously, as a position trader, you don't have a whole lot
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179 of opportunity. materializing that frequently. Swing Trading
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183 again, same capacity, it's going to be a little little while
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187 between each setup. So it's gonna be harder for a new trader
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191 looking to find themselves to wait between the signals and
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195 stick within that specific framework for trading. So short
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199 term trading and day trading and scalping, let's let's void
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203 debt for now. But we will talk about how you can utilize
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207 these concepts for scalping. But, again, short term and day
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211 trades. If you're brand new to price action, those are very
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215 rewarding because they give you immediate feedback, new
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219 traders sometimes need. So let's talk about what the
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223 professional perspective is when we're applying market
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227 structure. Well, obviously, for position trades, this is
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231 going to be anywhere between three to as much as six to six
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235 months to a year in terms of duration. Now, I don't have a
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239 whole lot of types of trades like this, but every three to
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243 four months in the marketplace, whether it be in stocks or
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247 commodity or Forex. There is a specific swing that manifest
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251 itself and we talked about that in other videos and other
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255 teaching. I'm not going to cover that here, but if you are
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259 that type of trader, obviously the three timeframes that you
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263 would utilize to break down market structure for your
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267 particular market would obviously be monthly, the weekly and
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271 the daily Okay, monthly being your highest timeframe, you
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275 weekly being your midline or mid level timeframe and then
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279 you have your daily that would be your short term. Now, as a
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283 swing trader, okay, your premise for breaking down market
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287 structure will be comprised over looking at the daily the
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291 four hour and the one hour chart okay. Your setup will be
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295 based upon what you see on the higher timeframe the daily
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299 much in the same capacity for position trade. The monthly
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303 will be your position trade premise, whereas if we are
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307 considerably overbought and there should be some kind of a
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311 topping form on a monthly chart, you would look to see
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315 market structure break down on the weekly and daily the
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319 facilitate a short position while on a swing trade model,
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323 you utilize that same measure of market structure by
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327 utilizing the highest timeframe for swing trades. And this
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331 approach would be the daily chart and then breaking that
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335 down into a four hour chart, and then lesser price action
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339 study in the one hour chart. So you'll be timing on the one
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343 hour you will be managing on the four hour and your premise
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347 or the trade idea would be built upon the highest timeframe
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351 which would be the daily chart, okay, and the swing traders
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355 model here. If you're a short term trader, obviously, the
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359 duration of time for these types of trades could be anywhere
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363 between one day to as much as a week or so. Swing Trading is
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367 about a week or more in terms of trade duration. I forgot to
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371 mention that but For short term trades, you'll be using the
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375 four hour chart for your trade premise or your directional
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379 bias. And then on the one hour chart, that would be your
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383 trade management or mid level timeframe. And then your 15
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387 minute chart would be utilized for your timing for entry and
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391 possibly looking for early reversal signs that your trade
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395 may be petering out and it's time to take profits. For day
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399 trades, obviously, you can see it's the one hour chart and
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403 the highest timeframe, you would be managing your trade on
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407 the 15 minute timeframe. And your five minute chart will be
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411 utilized to enter. Now, it's not to say that you can't use a
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415 five minute chart on the short term swing and position
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419 trades for entry. Okay, I'm giving you the framework for at
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423 least having three timeframes across the spectrum of your
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427 trading and how you break down market structure over these
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431 three specific time. frames for each individual trading
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435 model will give you again, the building blocks to flesh out
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439 what you need to see in terms of directional bias. Okay? So
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443 let's take a look at a closer look at price, action and
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447 market structure. Now the keys to multiple timeframe market
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451 structure, okay are rather simple. Where's your focus? Your
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455 focus should be on the highest of the three timeframes.
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459 trades will be managed by the highest or mid timeframes.
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463 Okay, in other words, if you are a swing trader, you're
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467 going to be utilizing that daily timeframe to manage or the
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471 four hour chart to manage your trade okay, but the daily is
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475 going to be utilized to facilitate the trade premise. In
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479 other words, that's going to give you your directional bias
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483 okay the market structure that is One a daily chart that's
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487 framing your swing trades. Okay? Once you get into a trade,
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491 you would be managing that trade on a four hour timeframe.
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495 And you would just use respective timeframes we just talked
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499 about in the previous slide and then your one hour chart
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503 would be used for timing purposes, okay. So, the shortest
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507 timeframe in that regard for swing trading would be the 60
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511 minute chart. So, your entry signals would be derived from
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515 having studied the market structure on the daily and the
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519 four hour then your one hour chart will facilitate the
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523 specific entry point. Okay, so you know, what you would do
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527 your entry concepts and techniques on the one hour chart for
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531 swing trades. The highest probability trades are made in the
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535 higher timeframe direction, okay. Now, there are going to be
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539 instances where the higher timeframe premise may be bullish.
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543 But you're approaching a key resistance level. So that may
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547 be trumped.
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551 So that's where we're going to go back to the core
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555 essentials to technical analysis that being support
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559 resistance trumps everything. Okay? Without the
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563 understanding of key support resistance levels, you're not
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567 going to get to a directional bias regardless of what
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571 trading model you're using position, day trading, whatever
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575 it is, if it's not framed on the premise of key support
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579 resistance levels, it's probably going to be a struggling
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583 point for you as well. Okay, so you have to go back to the
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587 core essentials to my concepts and just sound trading all
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591 together. Key support resistance levels are where it's all
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595 at. Okay, without those, all of these lines and all these
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599 procedures that we're going to be covering here, and we've
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603 covered in previous videos and such is going to do no good
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607 to you okay. So you have to understand what is a key support
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611 resistance level. So if you are looking at the highest time
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615 frame for your particular model that will hopefully draw
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619 your attention to whatever key to support resistance level
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623 at that point in price action. Obviously, you can always go
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627 out to a daily and weekly just as a catch all as far as
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631 whatever timeframe you're trading if you just look at a
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635 daily and weekly in terms of support resistance, those will
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639 be helpful to you. Now, the market profiles will also assist
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643 you in market structure analysis concepts that mean are we
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647 in a trending market? Are we in a reversal pattern or
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651 formation or that type of profile in the marketplace? And
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655 are we in a consolidation, preparing for a breakout
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659 scenario? Okay, so, market profiling is essential to helping
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663 you and assisting you and measuring what the current market
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667 structure is okay, now, are we bullish or bearish
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671 All right. Well, we're looking at market structure, we're
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675 referring to market structure. What are we speaking about?
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679 What's the what is it that we're trying to get at? Okay?
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683 Well, if you look at a price, rally up, and then price
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687 hitting a major resistance level, we're going to assume for
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691 a moment that this is your higher timeframe. Okay? And I'm
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695 going to keep it generic because that way you can apply it
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699 to whatever your higher timeframe is based on the model
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703 traded you are aiming to be as price rallies up into what we
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707 perceive as a higher level, key resistance level. Price
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711 never moves in a straight line. Okay, so there's going to be
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715 consolidation, a price move up and other consolidation, a
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719 price move up and then as price makes it into this
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723 resistance level, then we will be anticipating a reversal.
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727 So when markets start to break down, taking out short term
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731 swing lows in here, this short term swing low when the
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735 highest timeframe for your particular trading model. Once
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739 that breaks, this would be the catalyst for you to say okay,
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743 this is probably going to be an optimal trade entry based on
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747 the higher timeframe chart of your profile. Okay, so for an
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751 example, let's just say that this is a monthly chart, and
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754 00:12:31,710 ~-~-> 00:12:34,650
755 you're looking for a position trade. Okay, the monthly hits
756
757 190
758 00:12:34,650 ~-~-> 00:12:37,110
759 a key resistance level like this, and it comes down and
760
761 191
762 00:12:37,110 ~-~-> 00:12:40,380
763 takes out a short term low in the monthly we know now, that
764
765 192
766 00:12:40,380 ~-~-> 00:12:43,500
767 market structure has broken Okay, so we have a market
768
769 193
770 00:12:43,500 ~-~-> 00:12:48,840
771 structure shift right here. Okay. Now, we don't know what
772
773 194
774 00:12:48,840 ~-~-> 00:12:51,240
775 price is doing over here. This is all in the future. We're
776
777 195
778 00:12:51,240 ~-~-> 00:12:53,910
779 anticipating these types of events in terms of price action,
780
781 196
782 00:12:53,910 ~-~-> 00:12:57,090
783 but until we actually get there and starts trading, we can't
784
785 197
786 00:12:57,090 ~-~-> 00:13:00,930
787 deal with that yet. So it's all in anticipation. In our
788
789 198
790 00:13:00,930 ~-~-> 00:13:05,880
791 anticipated, anticipatory model, as far as our framework and
792
793 199
794 00:13:05,880 ~-~-> 00:13:09,360
795 thinking about price action, this is what we would expect to
796
797 200
798 00:13:09,360 ~-~-> 00:13:14,190
799 see once this structure has been broken. Okay. But as price
800
801 201
802 00:13:14,190 ~-~-> 00:13:18,840
803 starts to rally up, we don't anticipate seeing a
804
805 202
806 00:13:18,840 ~-~-> 00:13:22,410
807 breakthrough this resistance level. Okay? If we arrived at
808
809 203
810 00:13:22,410 ~-~-> 00:13:25,620
811 this as a possible resistance level, we would expect a
812
813 204
814 00:13:25,620 ~-~-> 00:13:28,050
815 retracement for normal trade entry, but then we would zoom
816
817 205
818 00:13:28,050 ~-~-> 00:13:32,880
819 in in this area right here. Okay, on a weekly timeframe to
820
821 206
822 00:13:32,880 ~-~-> 00:13:37,860
823 hone in on more key shorter term timeframe price levels. And
824
825 207
826 00:13:37,860 ~-~-> 00:13:44,430
827 then by zooming in, okay, we would possibly see a shorter
828
829 208
830 00:13:44,430 ~-~-> 00:13:49,950
831 term optimal trade entry or respective sell pattern to, you
832
833 209
834 00:13:49,950 ~-~-> 00:13:52,680
835 know, convince us even further that this is probably going
836
837 210
838 00:13:52,680 ~-~-> 00:13:56,520
839 to be a selling scenario. If we move down into a daily and
840
841 211
842 00:13:56,520 ~-~-> 00:13:59,970
843 see something even similar to that, okay, you would have all
844
845 212
846 00:14:00,000 ~-~-> 00:14:04,710
847 He's nesting confluences of implied resistance levels, once
848
849 213
850 00:14:04,710 ~-~-> 00:14:07,920
851 a higher time frame, Mark structure is broken down and then
852
853 214
854 00:14:07,920 ~-~-> 00:14:11,880
855 we would be able to position ourselves in sync with a top
856
857 215
858 00:14:11,880 ~-~-> 00:14:16,500
859 down approach with Mark structure, okay. And then as price
860
861 216
862 00:14:16,500 ~-~-> 00:14:20,460
863 starts to trade down, this is the gray area, all these areas
864
865 217
866 00:14:20,460 ~-~-> 00:14:24,750
867 where there's missing gaps. Okay, that's intentional. Okay.
868
869 218
870 00:14:25,110 ~-~-> 00:14:28,620
871 We don't know what's going to take place between the time
872
873 219
874 00:14:28,620 ~-~-> 00:14:31,620
875 where we see an entry point, and where we expect to see
876
877 220
878 00:14:31,620 ~-~-> 00:14:33,870
879 price get to in terms of our targets, and we'll talk more
880
881 221
882 00:14:33,870 ~-~-> 00:14:36,750
883 about that later on. But this is the gray area where you
884
885 222
886 00:14:36,750 ~-~-> 00:14:39,390
887 have to be comfortable with okay, because you don't know
888
889 223
890 00:14:39,390 ~-~-> 00:14:42,510
891 what's going to happen from your entry point. And your
892
893 224
894 00:14:42,510 ~-~-> 00:14:45,300
895 expected exit point. Okay. You don't know if it's going to
896
897 225
898 00:14:45,300 ~-~-> 00:14:47,400
899 go down there. Okay. You don't know if it's gonna reverse
900
901 226
902 00:14:47,400 ~-~-> 00:14:50,130
903 and take you out of the trade. Okay. But the overall
904
905 227
906 00:14:50,130 ~-~-> 00:14:54,690
907 framework, okay, or price structure. Okay. This is how
908
909 228
910 00:14:54,720 ~-~-> 00:14:59,280
911 market structure is built. Okay, this is a price rally and a
912
913 229
914 00:14:59,280 ~-~-> 00:15:05,340
915 decline Okay, we have consolidation. If we expect to see
916
917 230
918 00:15:05,340 ~-~-> 00:15:07,710
919 some kind of a rally in here, something's bullish that we
920
921 231
922 00:15:07,710 ~-~-> 00:15:10,890
923 would expect to support that as price starts to rally up,
924
925 232
926 00:15:11,520 ~-~-> 00:15:15,810
927 okay? We could be utilizing our mid level or short term
928
929 233
930 00:15:15,810 ~-~-> 00:15:22,110
931 level timeframes to to see. bullishness, okay, we want to
932
933 234
934 00:15:22,110 ~-~-> 00:15:26,580
935 see support being held resistance being broken. Okay? And
936
937 235
938 00:15:26,580 ~-~-> 00:15:29,340
939 every time price starts to pull back and retrace in here,
940
941 236
942 00:15:29,700 ~-~-> 00:15:32,580
943 the market structure concept that you would be utilizing it
944
945 237
946 00:15:32,580 ~-~-> 00:15:36,720
947 would be to simply look for optimal trade entries. Okay for
948
949 238
950 00:15:36,720 ~-~-> 00:15:40,290
951 buys, you'd be looking for reflections to buy, you'd be
952
953 239
954 00:15:40,290 ~-~-> 00:15:43,950
955 looking for type two trend following bullish scenario. So in
956
957 240
958 00:15:43,950 ~-~-> 00:15:47,460
959 other words in all this area here, you'd be looking for
960
961 241
962 00:15:49,500 ~-~-> 00:15:52,560
963 price finding support and resistance being broken. Okay,
964
965 242
966 00:15:52,560 ~-~-> 00:15:55,140
967 it's that it's that simple. That's the whole framework
968
969 243
970 00:15:55,530 ~-~-> 00:15:59,160
971 behind market structure, and its price rise up into another
972
973 244
974 00:15:59,160 ~-~-> 00:16:01,650
975 shorter term rate. Give me a term resistance level on here.
976
977 245
978 00:16:03,270 ~-~-> 00:16:07,110
979 Price, hopefully find some support, okay, but if it does
980
981 246
982 00:16:07,170 ~-~-> 00:16:11,730
983 start to break down, be comfortable with price coming back
984
985 247
986 00:16:11,730 ~-~-> 00:16:15,750
987 and blowing out previous lows in here, okay, there may be an
988
989 248
990 00:16:15,750 ~-~-> 00:16:19,650
991 important load it's taken place and trailing stop loss
992
993 249
994 00:16:19,650 ~-~-> 00:16:21,870
995 orders would be trailed up below that particular point.
996
997 250
998 00:16:22,290 ~-~-> 00:16:25,500
999 Okay, so as price dips back down all that's going to do is
1000
1001 251
1002 00:16:25,500 ~-~-> 00:16:29,520
1003 give you another opportunity to get long. Okay, now again
1004
1005 252
1006 00:16:29,520 ~-~-> 00:16:31,830
1007 let's think for a moment this is the higher timeframe
1008
1009 253
1010 00:16:31,830 ~-~-> 00:16:36,390
1011 premise okay this is the highest timeframe chart when we
1012
1013 254
1014 00:16:36,390 ~-~-> 00:16:39,060
1015 start seeing this consolidation here and we see the higher
1016
1017 255
1018 00:16:39,060 ~-~-> 00:16:41,940
1019 level resistance though because these are all known in
1020
1021 256
1022 00:16:41,940 ~-~-> 00:16:45,210
1023 advance this is why we have support resistance studies done.
1024
1025 257
1026 00:16:45,720 ~-~-> 00:16:48,600
1027 This is all part of our top down analysis seeing where price
1028
1029 258
1030 00:16:48,600 ~-~-> 00:16:52,290
1031 may be reaching for. So if we start seeing price rally up in
1032
1033 259
1034 00:16:52,290 ~-~-> 00:16:55,860
1035 here and then consolidate again. And this is another higher
1036
1037 260
1038 00:16:55,860 ~-~-> 00:16:59,130
1039 level key resistance level if price continues to maintain
1040
1041 261
1042 00:16:59,130 ~-~-> 00:17:03,180
1043 support breaks above all of these short term highs in here.
1044
1045 262
1046 00:17:04,650 ~-~-> 00:17:07,920
1047 The market structure implies that we could possibly see a
1048
1049 263
1050 00:17:07,920 ~-~-> 00:17:11,490
1051 leg from this low or whatever low would form back here to
1052
1053 264
1054 00:17:11,490 ~-~-> 00:17:16,170
1055 this high duplicated on a retracement here from this low to
1056
1057 265
1058 00:17:16,170 ~-~-> 00:17:25,590
1059 this high. The same thing could be said with market declines
1060
1061 266
1062 00:17:25,590 ~-~-> 00:17:30,360
1063 and reversals going along. Every time we see consolidation,
1064
1065 267
1066 00:17:30,780 ~-~-> 00:17:35,190
1067 consolidations, you want to study these for shorter term,
1068
1069 268
1070 00:17:35,220 ~-~-> 00:17:39,690
1071 more dynamic support resistance levels. These areas are more
1072
1073 269
1074 00:17:40,080 ~-~-> 00:17:44,070
1075 easily tradable because they have discernible price levels.
1076
1077 270
1078 00:17:44,070 ~-~-> 00:17:48,240
1079 They're very clear. We don't know how it's going to take
1080
1081 271
1082 00:17:48,450 ~-~-> 00:17:51,600
1083 price. From these consolidations to the next consolidation.
1084
1085 272
1086 00:17:51,600 ~-~-> 00:17:55,380
1087 We don't know that we anticipate that gray area that's
1088
1089 273
1090 00:17:55,380 ~-~-> 00:17:57,930
1091 missing these little pieces of market structure that's
1092
1093 274
1094 00:17:57,930 ~-~-> 00:18:01,350
1095 missing. I left that out because I want you to think like
1096
1097 275
1098 00:18:01,350 ~-~-> 00:18:06,480
1099 this. Okay? It's, it's a little confusing Now, I understand.
1100
1101 276
1102 00:18:06,870 ~-~-> 00:18:12,210
1103 But if you apply this same general I don't want to say,
1104
1105 277
1106 00:18:12,480 ~-~-> 00:18:16,560
1107 profile, but this diagram, okay, in other words in terms of
1108
1109 278
1110 00:18:16,560 ~-~-> 00:18:21,750
1111 how I have price lows, illustrated here. If you look at how
1112
1113 279
1114 00:18:21,750 ~-~-> 00:18:26,550
1115 price declines actually materialize, you'll start to see
1116
1117 280
1118 00:18:26,550 ~-~-> 00:18:29,400
1119 these lows form like this and inside of those
1120
1121 281
1122 00:18:29,400 ~-~-> 00:18:34,050
1123 consolidations, and in every swing loaded forms, there's
1124
1125 282
1126 00:18:34,050 ~-~-> 00:18:38,250
1127 going to be discernible optimal trade entries or reflection
1128
1129 283
1130 00:18:38,250 ~-~-> 00:18:43,110
1131 patterns, or generally fractal patterns. Okay? So you would
1132
1133 284
1134 00:18:43,110 ~-~-> 00:18:47,460
1135 apply these concepts, okay, with all the other concepts
1136
1137 285
1138 00:18:47,460 ~-~-> 00:18:53,250
1139 we've previously discussed. But looking at obviously, a
1140
1141 286
1142 00:18:53,250 ~-~-> 00:18:56,790
1143 higher level key support level down here as a catalyst.
1144
1145 287
1146 00:18:57,150 ~-~-> 00:19:01,680
1147 Okay. So as price moves from UK validation down into a new
1148
1149 288
1150 00:19:01,680 ~-~-> 00:19:05,100
1151 consolidation, much in the same capacity we just saw with
1152
1153 289
1154 00:19:05,100 ~-~-> 00:19:08,490
1155 the bullish move, reaching up into a higher level resistance
1156
1157 290
1158 00:19:08,490 ~-~-> 00:19:12,720
1159 level, we could be seeing a consolidation in here with this
1160
1161 291
1162 00:19:12,720 ~-~-> 00:19:15,990
1163 higher level support level down here. This would be where
1164
1165 292
1166 00:19:15,990 ~-~-> 00:19:19,680
1167 price may be reaching for. So if it's consolidating here, we
1168
1169 293
1170 00:19:19,680 ~-~-> 00:19:23,340
1171 could look for a move from whatever high forms here to this
1172
1173 294
1174 00:19:23,340 ~-~-> 00:19:27,510
1175 low, okay? duplicated from this high or whatever high forms
1176
1177 295
1178 00:19:27,510 ~-~-> 00:19:32,340
1179 in this area down to this low. Okay, so, while this diagram
1180
1181 296
1182 00:19:32,340 ~-~-> 00:19:37,230
1183 is fragmented, okay, think of in terms of the market maker
1184
1185 297
1186 00:19:37,230 ~-~-> 00:19:40,080
1187 profiles that I just recently shared with you guys this
1188
1189 298
1190 00:19:40,080 ~-~-> 00:19:45,030
1191 year. You see that same premise here as well. I don't need
1192
1193 299
1194 00:19:45,030 ~-~-> 00:19:46,830
1195 to draw the lines in here. You can actually probably
1196
1197 300
1198 00:19:46,860 ~-~-> 00:19:50,760
1199 remember by the way the profile was given to you. You can
1200
1201 301
1202 00:19:50,760 ~-~-> 00:19:54,780
1203 actually see it in here. Okay. So as prices engineer to go
1204
1205 302
1206 00:19:54,780 ~-~-> 00:19:59,160
1207 lower down into a support level, ultimately to trade higher.
1208
1209 303
1210 00:19:59,610 ~-~-> 00:20:03,510
1211 This is building blocks that we work with. Okay? Now,
1212
1213 304
1214 00:20:04,680 ~-~-> 00:20:07,500
1215 because we have to live in the gray area and not
1216
1217 305
1218 00:20:09,150 ~-~-> 00:20:13,680
1219 expect a simple black and white premise to trading, when we
1220
1221 306
1222 00:20:13,680 ~-~-> 00:20:16,380
1223 see consolidation here and price move down to a new area of
1224
1225 307
1226 00:20:16,380 ~-~-> 00:20:18,690
1227 consolidation and price moves down to a new cup area
1228
1229 308
1230 00:20:18,690 ~-~-> 00:20:22,590
1231 consolidation. And then we have short term breaks on market
1232
1233 309
1234 00:20:22,590 ~-~-> 00:20:24,600
1235 structure. Okay, and then once we have a shift in market
1236
1237 310
1238 00:20:24,600 ~-~-> 00:20:27,210
1239 structure right here, as price trades down then that support
1240
1241 311
1242 00:20:27,210 ~-~-> 00:20:30,030
1243 level. Again, this is all assuming this is the highest level
1244
1245 312
1246 00:20:30,030 ~-~-> 00:20:33,450
1247 of your three timeframes that you're trading with for your
1248
1249 313
1250 00:20:33,450 ~-~-> 00:20:37,290
1251 particular trading model. When you see this shift in market
1252
1253 314
1254 00:20:37,290 ~-~-> 00:20:40,350
1255 structure here, we would anticipate seeing a bullish move
1256
1257 315
1258 00:20:40,350 ~-~-> 00:20:46,380
1259 higher. But here's where we enter a new level of gray. When
1260
1261 316
1262 00:20:46,380 ~-~-> 00:20:49,920
1263 we move into this new consolidation in here, this may not
1264
1265 317
1266 00:20:49,920 ~-~-> 00:20:53,550
1267 always translate into even higher prices going out like we
1268
1269 318
1270 00:20:53,550 ~-~-> 00:20:57,420
1271 have here implied it could be just reaching up to go back to
1272
1273 319
1274 00:20:57,420 ~-~-> 00:21:00,900
1275 this range from this old high to this low Member inside the
1276
1277 320
1278 00:21:00,900 ~-~-> 00:21:04,740
1279 range concepts, okay? So you have to have that in mind. So
1280
1281 321
1282 00:21:04,740 ~-~-> 00:21:08,820
1283 that's why if you're going to be getting long down here they
1284
1285 322
1286 00:21:08,820 ~-~-> 00:21:13,200
1287 expect to see some type of profit taking here. Right? And
1288
1289 323
1290 00:21:13,200 ~-~-> 00:21:16,410
1291 you'd be able to see that utilizing your mid level chart.
1292
1293 324
1294 00:21:16,770 ~-~-> 00:21:20,940
1295 Okay? For your swing projections. Okay, we'll talk about
1296
1297 325
1298 00:21:20,940 ~-~-> 00:21:25,170
1299 that more as we go on. But generally as you see price come
1300
1301 326
1302 00:21:25,170 ~-~-> 00:21:27,840
1303 down in here every time price retraces and gives you a new
1304
1305 327
1306 00:21:27,840 ~-~-> 00:21:30,480
1307 optimal trade entries. That's what you're looking for. You
1308
1309 328
1310 00:21:30,480 ~-~-> 00:21:34,740
1311 want to see price holding support, breaking resistance,
1312
1313 329
1314 00:21:35,010 ~-~-> 00:21:40,410
1315 okay, on this side, support level being found. But as we're
1316
1317 330
1318 00:21:40,440 ~-~-> 00:21:42,960
1319 trading down into that support level, we're anticipating
1320
1321 331
1322 00:21:43,170 ~-~-> 00:21:47,520
1323 market structure to break lows and find resistance, break
1324
1325 332
1326 00:21:47,520 ~-~-> 00:21:52,020
1327 close, find resistance, break lows, find resistance, okay?
1328
1329 333
1330 00:21:52,260 ~-~-> 00:21:55,500
1331 So every new consolidation, if we're expecting price
1332
1333 334
1334 00:21:55,500 ~-~-> 00:21:59,310
1335 reaching down to our higher level, support level, okay, on a
1336
1337 335
1338 00:21:59,310 ~-~-> 00:22:02,580
1339 highest level Level chart. That's why we do our analysis on
1340
1341 336
1342 00:22:02,580 ~-~-> 00:22:04,380
1343 the highest level because you want to see where price is
1344
1345 337
1346 00:22:04,380 ~-~-> 00:22:08,730
1347 probably reaching for. And by seeing where the highest level
1348
1349 338
1350 00:22:08,730 ~-~-> 00:22:12,060
1351 chart in our particular trading model is reaching for.
1352
1353 339
1354 00:22:13,230 ~-~-> 00:22:15,180
1355 Again, we don't know for certain that they're always going
1356
1357 340
1358 00:22:15,180 ~-~-> 00:22:18,060
1359 to get there. But if you look in these higher level charts,
1360
1361 341
1362 00:22:18,540 ~-~-> 00:22:21,030
1363 it's going to give you the highest probability in terms of
1364
1365 342
1366 00:22:21,030 ~-~-> 00:22:24,720
1367 success. If price doesn't get to these particular points and
1368
1369 343
1370 00:22:24,720 ~-~-> 00:22:30,300
1371 we start seeing early market shifts in market structure,
1372
1373 344
1374 00:22:31,020 ~-~-> 00:22:33,840
1375 this could be a catalyst for you know, another type of
1376
1377 345
1378 00:22:33,840 ~-~-> 00:22:37,380
1379 trade, okay, we could possibly get along in here and maybe
1380
1381 346
1382 00:22:37,380 ~-~-> 00:22:40,260
1383 reach up into the range from the high to this low here, that
1384
1385 347
1386 00:22:40,260 ~-~-> 00:22:45,270
1387 may be a means of profitability should be a good reward to
1388
1389 348
1390 00:22:45,270 ~-~-> 00:22:49,620
1391 risk scenario here, okay, you three to one could still exist
1392
1393 349
1394 00:22:49,620 ~-~-> 00:22:55,350
1395 within that fine, that framework of price action, okay. But
1396
1397 350
1398 00:22:55,380 ~-~-> 00:22:59,490
1399 again, even if that happens, we could still take some short
1400
1401 351
1402 00:22:59,490 ~-~-> 00:23:03,750
1403 term trades. In here, but that may be a very, very short
1404
1405 352
1406 00:23:03,750 ~-~-> 00:23:10,140
1407 term bias, only taking out to a higher level bias to get
1408
1409 353
1410 00:23:10,140 ~-~-> 00:23:14,580
1411 lower support levels here taken out, okay, in other words,
1412
1413 354
1414 00:23:14,940 ~-~-> 00:23:17,670
1415 it used to be you're gonna have to blend some concepts here,
1416
1417 355
1418 00:23:17,730 ~-~-> 00:23:22,650
1419 the inside the range concepts, simply looking at lower lows
1420
1421 356
1422 00:23:22,650 ~-~-> 00:23:26,340
1423 and lower highs. Okay, if we do get a short term bounce in
1424
1425 357
1426 00:23:26,340 ~-~-> 00:23:32,160
1427 here between the high this formed here and the low here this
1428
1429 358
1430 00:23:32,160 ~-~-> 00:23:34,530
1431 could be creating another trade entry to get that
1432
1433 359
1434 00:23:34,530 ~-~-> 00:23:37,290
1435 fulfillment of this lower level support level down here.
1436
1437 360
1438 00:23:43,080 ~-~-> 00:23:48,300
1439 Now, again, we've seen this diagram before, assuming that we
1440
1441 361
1442 00:23:48,300 ~-~-> 00:23:53,550
1443 have a high up in here reaching into resistance. As price
1444
1445 362
1446 00:23:53,550 ~-~-> 00:23:56,820
1447 breaks this short term low here the market structure is
1448
1449 363
1450 00:23:56,820 ~-~-> 00:24:01,020
1451 broken. So as price starts to retrace ever Retired retraces
1452
1453 364
1454 00:24:01,020 ~-~-> 00:24:05,160
1455 we're looking for new selling opportunities. But if we see a
1456
1457 365
1458 00:24:05,160 ~-~-> 00:24:08,550
1459 previous swing as we see here, see this price swing here?
1460
1461 366
1462 00:24:09,570 ~-~-> 00:24:16,350
1463 Okay, if this levels taken out here, if we get a retracement
1464
1465 367
1466 00:24:16,500 ~-~-> 00:24:20,190
1467 or another additional sell signal. This is where we use
1468
1469 368
1470 00:24:20,310 ~-~-> 00:24:24,120
1471 swing projections, just on price we're not using Fibonacci
1472
1473 369
1474 00:24:24,150 ~-~-> 00:24:28,770
1475 you can, but just looking at simple price action alone, this
1476
1477 370
1478 00:24:28,770 ~-~-> 00:24:32,880
1479 low to high once it's broken, you can start taking this same
1480
1481 371
1482 00:24:32,910 ~-~-> 00:24:38,280
1483 measurable swing from this point here down to that same
1484
1485 372
1486 00:24:38,280 ~-~-> 00:24:42,030
1487 level and projected lower. Okay, and you get somewhere in
1488
1489 373
1490 00:24:42,030 ~-~-> 00:24:45,570
1491 this area here. Now I purposely allowed the diagram to be a
1492
1493 374
1494 00:24:45,570 ~-~-> 00:24:50,670
1495 little bit farther because I teach to exit on the trade
1496
1497 375
1498 00:24:50,670 ~-~-> 00:24:55,260
1499 before the actual objective is met. Okay, so every time we
1500
1501 376
1502 00:24:55,260 ~-~-> 00:24:59,700
1503 see a broken swing, okay, this is a swing that's broken
1504
1505 377
1506 00:24:59,700 ~-~-> 00:25:02,430
1507 here. Low versus low here or whatever low it would have
1508
1509 378
1510 00:25:02,430 ~-~-> 00:25:06,420
1511 formed in here. I'm assuming that you can see this as this
1512
1513 379
1514 00:25:06,510 ~-~-> 00:25:11,880
1515 as a swing when it's broken right here, we went below here,
1516
1517 380
1518 00:25:12,600 ~-~-> 00:25:16,590
1519 if we retrace back into it, okay, I'm also purposely drew
1520
1521 381
1522 00:25:16,590 ~-~-> 00:25:19,830
1523 this a little bit past what would be expected as resistance.
1524
1525 382
1526 00:25:21,990 ~-~-> 00:25:26,430
1527 I've purposely allowed this to move beyond this low here to
1528
1529 383
1530 00:25:26,430 ~-~-> 00:25:31,560
1531 illustrate how support resistance can be. Gray as well, it's
1532
1533 384
1534 00:25:31,560 ~-~-> 00:25:33,810
1535 not black and white, you're going to have to allow some
1536
1537 385
1538 00:25:33,810 ~-~-> 00:25:36,900
1539 flexibility with price. So when it starts to pull back
1540
1541 386
1542 00:25:36,900 ~-~-> 00:25:39,990
1543 deeper, okay, this still could set up the optimal trade
1544
1545 387
1546 00:25:39,990 ~-~-> 00:25:43,830
1547 entry. Okay, and while this isn't the exact level price was
1548
1549 388
1550 00:25:43,890 ~-~-> 00:25:48,180
1551 able to stave off a rally, it still was working within the
1552
1553 389
1554 00:25:48,180 ~-~-> 00:25:52,350
1555 previous range here and this pie here as well. So we're
1556
1557 390
1558 00:25:52,350 ~-~-> 00:25:57,390
1559 still within a bearish market structure. So don't be lulled
1560
1561 391
1562 00:25:57,390 ~-~-> 00:25:59,730
1563 into thinking this is going to be a long to go higher.
1564
1565 392
1566 00:26:00,000 ~-~-> 00:26:02,520
1567 Assuming again this is a higher level of resistance level.
1568
1569 393
1570 00:26:04,110 ~-~-> 00:26:07,590
1571 And again, every little short term retracement here could be
1572
1573 394
1574 00:26:07,680 ~-~-> 00:26:11,280
1575 a catalyst for an additional entry using our smallest of the
1576
1577 395
1578 00:26:11,280 ~-~-> 00:26:15,030
1579 three timeframes. Again this is all modeling off of the
1580
1581 396
1582 00:26:15,030 ~-~-> 00:26:18,240
1583 highest timeframe, okay and then assuming once we get this
1584
1585 397
1586 00:26:18,240 ~-~-> 00:26:22,890
1587 broken down this swing low here broken we could utilize the
1588
1589 398
1590 00:26:22,890 ~-~-> 00:26:27,780
1591 mid level chart for additional entries and or managing of a
1592
1593 399
1594 00:26:27,780 ~-~-> 00:26:30,870
1595 position that's already been assumed based on the highest of
1596
1597 400
1598 00:26:30,870 ~-~-> 00:26:35,580
1599 the three timeframes. Now as price also breaks down these
1600
1601 401
1602 00:26:35,670 ~-~-> 00:26:39,060
1603 swings, this is known as a swing up once it's broken, okay,
1604
1605 402
1606 00:26:39,060 ~-~-> 00:26:43,170
1607 this is an engineered swing, okay. You see this in price
1608
1609 403
1610 00:26:43,170 ~-~-> 00:26:46,860
1611 action all the time. Okay, it's a measured move, very
1612
1613 404
1614 00:26:46,860 ~-~-> 00:26:51,300
1615 simple. taken this low to this high, whatever that range is
1616
1617 405
1618 00:26:51,360 ~-~-> 00:26:54,990
1619 subtracted from that same point here. And projected lower.
1620
1621 406
1622 00:26:55,440 ~-~-> 00:27:00,630
1623 Okay. That's the measured swing. Here is a measured Leg
1624
1625 407
1626 00:27:00,720 ~-~-> 00:27:04,590
1627 move, you have the high down to a low here and price starts
1628
1629 408
1630 00:27:04,590 ~-~-> 00:27:07,980
1631 to retrace in here. We could see this as an intermediate
1632
1633 409
1634 00:27:07,980 ~-~-> 00:27:13,080
1635 term price swing, okay, or price leg. So we have a
1636
1637 410
1638 00:27:13,080 ~-~-> 00:27:16,890
1639 measurable swing here that we can use for projections. Then
1640
1641 411
1642 00:27:16,890 ~-~-> 00:27:20,910
1643 we also have a measurable lake. Okay, so we had the first
1644
1645 412
1646 00:27:20,910 ~-~-> 00:27:25,380
1647 leg and price down here and we retrace back utilizing the
1648
1649 413
1650 00:27:25,380 ~-~-> 00:27:28,710
1651 framework that's based on this swing up. Okay, so we're
1652
1653 414
1654 00:27:28,710 ~-~-> 00:27:33,780
1655 blending two concepts here, a swing that's broken. Okay. And
1656
1657 415
1658 00:27:33,780 ~-~-> 00:27:36,750
1659 within a bearish market structure, then we also have a
1660
1661 416
1662 00:27:36,750 ~-~-> 00:27:41,040
1663 retracement back into a previous support broken it should
1664
1665 417
1666 00:27:41,040 ~-~-> 00:27:45,540
1667 act as resistance. Okay. And notice how this low here I
1668
1669 418
1670 00:27:45,540 ~-~-> 00:27:48,390
1671 tried it more or less imply that price could be reaching for
1672
1673 419
1674 00:27:48,390 ~-~-> 00:27:52,140
1675 even a shorter term support that's broken now as resistance.
1676
1677 420
1678 00:27:52,140 ~-~-> 00:27:55,230
1679 So what might look real clear and discernible on the charts.
1680
1681 421
1682 00:27:55,290 ~-~-> 00:27:59,850
1683 It may not be as clear cut as that but we would expect this
1684
1685 422
1686 00:27:59,850 ~-~-> 00:28:05,010
1687 to intermediate term retracement for a new leg down. And
1688
1689 423
1690 00:28:05,010 ~-~-> 00:28:07,440
1691 that's when you would expect to see the high too low here on
1692
1693 424
1694 00:28:07,440 ~-~-> 00:28:11,130
1695 this leg repeated and repeated and protected from this
1696
1697 425
1698 00:28:11,280 ~-~-> 00:28:16,020
1699 highway reforms here. Down here and that would look similar
1700
1701 426
1702 00:28:17,010 ~-~-> 00:28:21,720
1703 to what we'd expect when you see me term highs and lows. And
1704
1705 427
1706 00:28:21,720 ~-~-> 00:28:23,190
1707 the term high is obviously
1708
1709 428
1710 00:28:23,220 ~-~-> 00:28:28,530
1711 a high that has lower highs on either side of it. Okay, and
1712
1713 429
1714 00:28:28,530 ~-~-> 00:28:33,480
1715 any near term low is a low that has two higher lows on
1716
1717 430
1718 00:28:33,480 ~-~-> 00:28:37,080
1719 either side of it. So it's very easy to see and simply
1720
1721 431
1722 00:28:37,380 ~-~-> 00:28:41,580
1723 looking at your candles and your bars when your respective
1724
1725 432
1726 00:28:41,580 ~-~-> 00:28:45,750
1727 timeframes. When you see these, note them, okay? And by
1728
1729 433
1730 00:28:45,750 ~-~-> 00:28:49,410
1731 noting them. You'll have whatever ways you want to have it.
1732
1733 434
1734 00:28:50,250 ~-~-> 00:28:53,220
1735 You know, I'm delineating and denoting that with these blue
1736
1737 435
1738 00:28:53,220 ~-~-> 00:28:55,890
1739 circles here. It could be anything on your charts, you could
1740
1741 436
1742 00:28:55,890 ~-~-> 00:28:59,550
1743 have stars, you could, you could just you type in me and
1744
1745 437
1746 00:28:59,550 ~-~-> 00:29:01,890
1747 term hi Whatever you can put the little arrows on it,
1748
1749 438
1750 00:29:02,400 ~-~-> 00:29:05,490
1751 whatever it is that you use to identify that that's your way
1752
1753 439
1754 00:29:05,490 ~-~-> 00:29:08,520
1755 of doing it. But it's important to understand where they're
1756
1757 440
1758 00:29:08,520 ~-~-> 00:29:13,320
1759 at. And when they start to nest out like this, okay? You can
1760
1761 441
1762 00:29:13,320 ~-~-> 00:29:16,950
1763 classify enemy a term to now long term because if we have
1764
1765 442
1766 00:29:17,670 ~-~-> 00:29:21,060
1767 lower highs on either side of it, okay, this would classify
1768
1769 443
1770 00:29:21,060 ~-~-> 00:29:25,800
1771 this as a long term high, that would also allow you to
1772
1773 444
1774 00:29:25,800 ~-~-> 00:29:30,540
1775 expect to see much longer term price swings, okay? So by
1776
1777 445
1778 00:29:30,570 ~-~-> 00:29:35,550
1779 nesting out and marking off your swing highs and swing lows
1780
1781 446
1782 00:29:35,610 ~-~-> 00:29:39,090
1783 on your respective timeframes, you start to build a
1784
1785 447
1786 00:29:39,090 ~-~-> 00:29:41,730
1787 framework that's needed to be able to discern if you're in
1788
1789 448
1790 00:29:41,730 ~-~-> 00:29:45,150
1791 an intermediate term, or short term price swing in within
1792
1793 449
1794 00:29:45,150 ~-~-> 00:29:51,060
1795 your market structure. Now that lag that we were talking
1796
1797 450
1798 00:29:51,060 ~-~-> 00:29:54,390
1799 about earlier, can be seen here by having that immediate
1800
1801 451
1802 00:29:54,390 ~-~-> 00:29:59,010
1803 term High Noon ID. So this is a medium term, price leg, and
1804
1805 452
1806 00:29:59,010 ~-~-> 00:30:02,250
1807 then here's your immediate term. retracement. Okay. And then
1808
1809 453
1810 00:30:02,250 ~-~-> 00:30:05,250
1811 you would see, obviously the next leg down would be
1812
1813 454
1814 00:30:05,250 ~-~-> 00:30:08,100
1815 replicated. So you can see the range between this low to
1816
1817 455
1818 00:30:08,100 ~-~-> 00:30:12,420
1819 high is exactly what you see here, causing you to expect or
1820
1821 456
1822 00:30:12,420 ~-~-> 00:30:16,320
1823 anticipate price movement back here. If you're in a trade
1824
1825 457
1826 00:30:16,320 ~-~-> 00:30:19,140
1827 still, once you retraced you can expect to hold on to that
1828
1829 458
1830 00:30:19,140 ~-~-> 00:30:21,360
1831 trade to get back down to these levels here, which would
1832
1833 459
1834 00:30:21,360 ~-~-> 00:30:24,570
1835 obviously hopefully be a higher level support level to also
1836
1837 460
1838 00:30:24,780 ~-~-> 00:30:28,350
1839 converge and have a confluence of reasons to expect to take
1840
1841 461
1842 00:30:28,350 ~-~-> 00:30:29,220
1843 some profits there.
1844
1845 462
1846 00:30:35,580 ~-~-> 00:30:39,150
1847 Now having all these things in the forefront of your mind
1848
1849 463
1850 00:30:39,150 ~-~-> 00:30:43,830
1851 and having specific price legs and price swings, and how
1852
1853 464
1854 00:30:43,830 ~-~-> 00:30:48,930
1855 they nest together, it's important to understand that the
1856
1857 465
1858 00:30:48,960 ~-~-> 00:30:51,930
1859 framework of your market structure is derived from the
1860
1861 466
1862 00:30:51,930 ~-~-> 00:30:54,360
1863 highest level of the three timeframes you're trading with.
1864
1865 467
1866 00:30:54,990 ~-~-> 00:30:57,690
1867 That's where you're, you're the framework or the or the
1868
1869 468
1870 00:30:57,690 ~-~-> 00:31:03,030
1871 basis of your trade is built upon Your mid level chart is
1872
1873 469
1874 00:31:03,030 ~-~-> 00:31:08,400
1875 used to zero down into a smaller timeframe expecting to find
1876
1877 470
1878 00:31:09,360 ~-~-> 00:31:11,850
1879 support resistance levels that may not be discernible and
1880
1881 471
1882 00:31:11,850 ~-~-> 00:31:15,210
1883 your highest timeframe, then your lowest timeframe is used
1884
1885 472
1886 00:31:15,210 ~-~-> 00:31:17,100
1887 for your entry. And we're gonna be talking about that
1888
1889 473
1890 00:31:17,100 ~-~-> 00:31:20,640
1891 specifically here, assuming we've built the premise of
1892
1893 474
1894 00:31:20,670 ~-~-> 00:31:24,990
1895 market structure, and assuming that it's bullish, okay,
1896
1897 475
1898 00:31:25,320 ~-~-> 00:31:27,930
1899 everything we're talking about here would be obviously
1900
1901 476
1902 00:31:27,930 ~-~-> 00:31:31,110
1903 reverse for selling scenarios, but assuming we have a
1904
1905 477
1906 00:31:31,110 ~-~-> 00:31:34,920
1907 bullish market structure, okay, we're a swing trader, let's
1908
1909 478
1910 00:31:34,920 ~-~-> 00:31:39,360
1911 say for a moment that our highest timeframes suggests that
1912
1913 479
1914 00:31:39,360 ~-~-> 00:31:42,000
1915 we have a bullish market structure underway. We've traded
1916
1917 480
1918 00:31:42,000 ~-~-> 00:31:47,100
1919 off of a higher level, support level and price has given us
1920
1921 481
1922 00:31:47,100 ~-~-> 00:31:50,820
1923 a broken market structure to the upside. Okay, so there's
1924
1925 482
1926 00:31:50,820 ~-~-> 00:31:53,310
1927 been a market structure shift, short term highs that been
1928
1929 483
1930 00:31:53,310 ~-~-> 00:31:57,600
1931 broken on our highest level timeframe chart. Our mid level
1932
1933 484
1934 00:31:57,600 ~-~-> 00:32:01,290
1935 timeframe has allowed us to to zero and to find a key
1936
1937 485
1938 00:32:01,290 ~-~-> 00:32:05,880
1939 support resistance level. Now, we have this higher level key
1940
1941 486
1942 00:32:05,880 ~-~-> 00:32:08,220
1943 support resistance level, that's also converging with our
1944
1945 487
1946 00:32:08,220 ~-~-> 00:32:11,760
1947 mid level support resistance level. Okay, and that same
1948
1949 488
1950 00:32:11,940 ~-~-> 00:32:15,540
1951 support resistance level may be a confluence of maybe a be a
1952
1953 489
1954 00:32:15,570 ~-~-> 00:32:19,710
1955 pattern that overlaps with that specific that level. Okay.
1956
1957 490
1958 00:32:19,740 ~-~-> 00:32:29,550
1959 And we now have a bias, okay, this bias is bullish, it does
1960
1961 491
1962 00:32:29,550 ~-~-> 00:32:33,570
1963 not mean every single day you're going to get a trade that's
1964
1965 492
1966 00:32:33,570 ~-~-> 00:32:36,720
1967 going to materialize as a bullish move and see
1968
1969 493
1970 00:32:36,720 ~-~-> 00:32:40,740
1971 profitability. If it was if it was just that simple guys,
1972
1973 494
1974 00:32:40,770 ~-~-> 00:32:45,090
1975 everybody would be multimillionaires and be we'd be we we'd
1976
1977 495
1978 00:32:45,090 ~-~-> 00:32:49,530
1979 all be Warren Buffett's. And super rich. So obviously, you
1980
1981 496
1982 00:32:49,530 ~-~-> 00:32:54,120
1983 know, it's not that easy. You have to have some discernment
1984
1985 497
1986 00:32:54,120 ~-~-> 00:32:58,530
1987 and allow for some, you know, failure because it's going to
1988
1989 498
1990 00:32:58,530 ~-~-> 00:33:02,400
1991 happen but as soon as We have that that premise, okay, our
1992
1993 499
1994 00:33:02,400 ~-~-> 00:33:05,730
1995 bias is to buy, it doesn't mean that traders can't make
1996
1997 500
1998 00:33:05,730 ~-~-> 00:33:10,140
1999 money going short this specific day or timeframe. Okay, it
2000
2001 501
2002 00:33:10,140 ~-~-> 00:33:14,520
2003 just means that you are going to stick to being a bull at
2004
2005 502
2006 00:33:14,520 ~-~-> 00:33:19,830
2007 this particular day or particular timeframe. Okay. So with
2008
2009 503
2010 00:33:19,830 ~-~-> 00:33:22,650
2011 that, with that in mind, we always go back to our key
2012
2013 504
2014 00:33:22,650 ~-~-> 00:33:26,460
2015 premise of trading within kill zones. Okay? So you want to
2016
2017 505
2018 00:33:26,460 ~-~-> 00:33:29,880
2019 be doing your entries in your kill zone times, London open,
2020
2021 506
2022 00:33:30,120 ~-~-> 00:33:34,290
2023 New York open, London close or Asia. Okay, but assuming we
2024
2025 507
2026 00:33:34,290 ~-~-> 00:33:37,530
2027 have already arrived at our time of day when we're going to
2028
2029 508
2030 00:33:37,530 ~-~-> 00:33:41,490
2031 be trading, okay. We already understand that the kill zone
2032
2033 509
2034 00:33:41,490 ~-~-> 00:33:45,180
2035 when it's going to begin. We already have our key support
2036
2037 510
2038 00:33:45,180 ~-~-> 00:33:48,540
2039 resistance level already identified, and we know where price
2040
2041 511
2042 00:33:48,540 ~-~-> 00:33:51,030
2043 should get to before we do anything, and that's going to be
2044
2045 512
2046 00:33:51,780 ~-~-> 00:33:53,970
2047 basically this little area right here. So when we're going
2048
2049 513
2050 00:33:53,970 ~-~-> 00:33:57,390
2051 to be seeing price hopefully, at some point, move down to
2052
2053 514
2054 00:33:57,390 ~-~-> 00:34:00,690
2055 that level here. This is our action point. This is where we
2056
2057 515
2058 00:34:00,690 ~-~-> 00:34:04,740
2059 take action, we do the entry here. Now, it could be on a
2060
2061 516
2062 00:34:04,740 ~-~-> 00:34:06,960
2063 limit basis, or it could be a market order, but we're
2064
2065 517
2066 00:34:06,960 ~-~-> 00:34:11,100
2067 utilizing time price theory. Okay. So this is what it looks
2068
2069 518
2070 00:34:11,100 ~-~-> 00:34:16,260
2071 like in in your mind. There's nothing happening yet. you
2072
2073 519
2074 00:34:16,260 ~-~-> 00:34:20,670
2075 anticipate these events unfolding within a specific time of
2076
2077 520
2078 00:34:20,670 ~-~-> 00:34:25,590
2079 day with a specific bias in mind, okay? You want to see
2080
2081 521
2082 00:34:25,590 ~-~-> 00:34:29,100
2083 these things line up? And I think what happens is you guys
2084
2085 522
2086 00:34:29,130 ~-~-> 00:34:31,560
2087 send me emails you talk about on the internet posting on
2088
2089 523
2090 00:34:31,560 ~-~-> 00:34:34,230
2091 baby pips forums. You know, I don't know what the bias is
2092
2093 524
2094 00:34:34,230 ~-~-> 00:34:39,090
2095 for today. here's, here's the secret every day, the bias is
2096
2097 525
2098 00:34:39,090 ~-~-> 00:34:42,390
2099 both directions. Every day the bias is both directions.
2100
2101 526
2102 00:34:43,290 ~-~-> 00:34:46,650
2103 Think about that. There's traders making money going long
2104
2105 527
2106 00:34:46,650 ~-~-> 00:34:51,720
2107 and short that day. But you have to decide on what it is
2108
2109 528
2110 00:34:51,720 ~-~-> 00:34:53,850
2111 that you're trading based on your timeframe and your
2112
2113 529
2114 00:34:53,850 ~-~-> 00:34:56,940
2115 profile. Okay, as a trader, are you short term trader? swing
2116
2117 530
2118 00:34:56,940 ~-~-> 00:35:00,540
2119 trader Are you a position trader and you're looking for The
2120
2121 531
2122 00:35:00,540 ~-~-> 00:35:05,070
2123 bias that you're holding to line up with price action, okay,
2124
2125 532
2126 00:35:05,220 ~-~-> 00:35:08,940
2127 you can't force price action to do what you want it to do,
2128
2129 533
2130 00:35:09,150 ~-~-> 00:35:13,020
2131 you can only get yourself in sync with what price may be
2132
2133 534
2134 00:35:13,020 ~-~-> 00:35:16,170
2135 doing and allowing you a ride. Okay, so with that
2136
2137 535
2138 00:35:16,170 ~-~-> 00:35:16,740
2139 assumption,
2140
2141 536
2142 00:35:16,980 ~-~-> 00:35:21,210
2143 we're looking at price here with the bullish premise that we
2144
2145 537
2146 00:35:21,210 ~-~-> 00:35:23,970
2147 will be expecting to see higher prices if we get down to
2148
2149 538
2150 00:35:23,970 ~-~-> 00:35:27,150
2151 this support level. Okay, so we've established that the
2152
2153 539
2154 00:35:27,150 ~-~-> 00:35:29,910
2155 higher timeframe of the three timeframes we use for market
2156
2157 540
2158 00:35:29,910 ~-~-> 00:35:34,980
2159 structure study is now bullish. Okay. We assumed that we
2160
2161 541
2162 00:35:34,980 ~-~-> 00:35:39,000
2163 have a very respectable support level down here. Okay. So if
2164
2165 542
2166 00:35:39,000 ~-~-> 00:35:41,310
2167 price trades back down to that level within a kill zone,
2168
2169 543
2170 00:35:41,670 ~-~-> 00:35:44,070
2171 we're going to be taking action here to buy, okay, and all
2172
2173 544
2174 00:35:44,070 ~-~-> 00:35:47,340
2175 we simply do at that point is you wait, you wait until the
2176
2177 545
2178 00:35:47,340 ~-~-> 00:35:50,220
2179 kill zone starts. And when price gets to a specific point,
2180
2181 546
2182 00:35:50,490 ~-~-> 00:35:52,860
2183 you use whatever entry technique or concept you're going to
2184
2185 547
2186 00:35:52,860 ~-~-> 00:35:55,590
2187 be utilizing for your trade entry could be optimal trade
2188
2189 548
2190 00:35:55,590 ~-~-> 00:36:00,480
2191 entry. It could be reflection, it could be a Grail. It could
2192
2193 549
2194 00:36:00,480 ~-~-> 00:36:04,260
2195 be a stinger it could be any, any one of the trading
2196
2197 550
2198 00:36:04,260 ~-~-> 00:36:06,720
2199 patterns that you're utilizing, but it's happening at a key
2200
2201 551
2202 00:36:06,720 ~-~-> 00:36:10,200
2203 support resistance level with the higher time frame of the
2204
2205 552
2206 00:36:10,200 ~-~-> 00:36:13,440
2207 three front timeframes you use for market structure, giving
2208
2209 553
2210 00:36:13,440 ~-~-> 00:36:16,440
2211 you your bias. So when you have that this is your action
2212
2213 554
2214 00:36:16,440 ~-~-> 00:36:19,500
2215 plan, this is what you do. You don't do anything else. Okay?
2216
2217 555
2218 00:36:19,860 ~-~-> 00:36:22,710
2219 This could be a sell pattern here, okay, for someone that's
2220
2221 556
2222 00:36:22,710 ~-~-> 00:36:26,370
2223 very short term trader, okay, and trades down in they,
2224
2225 557
2226 00:36:26,400 ~-~-> 00:36:29,430
2227 they've made money from this point here to here. That's not
2228
2229 558
2230 00:36:29,430 ~-~-> 00:36:35,460
2231 your trade. Okay? So don't try to force more out of the
2232
2233 559
2234 00:36:35,460 ~-~-> 00:36:39,000
2235 concept and it's intended, okay, you're just simply looking
2236
2237 560
2238 00:36:39,000 ~-~-> 00:36:44,400
2239 for a bias for your style of trading. Okay? It doesn't mean
2240
2241 561
2242 00:36:44,490 ~-~-> 00:36:46,710
2243 that you're going to be right all the time. Okay. So take
2244
2245 562
2246 00:36:46,710 ~-~-> 00:36:49,470
2247 that out of the equation. All you're doing is looking to get
2248
2249 563
2250 00:36:49,470 ~-~-> 00:36:52,470
2251 yourself in sync with whatever price action is doing, based
2252
2253 564
2254 00:36:52,500 ~-~-> 00:36:55,200
2255 on your premise or your style of trading.
2256
2257 565
2258 00:37:00,599 ~-~-> 00:37:05,399
2259 All right. Obviously, this is a very simple approach to
2260
2261 566
2262 00:37:05,399 ~-~-> 00:37:09,449
2263 dealing with directional bias. But it's meant to help you
2264
2265 567
2266 00:37:09,449 ~-~-> 00:37:13,979
2267 avoid the complication. That tends to happen with traders,
2268
2269 568
2270 00:37:13,979 ~-~-> 00:37:16,709
2271 okay? And it's usually the new traders, they try to add all
2272
2273 569
2274 00:37:16,709 ~-~-> 00:37:20,429
2275 these things to it and squeeze all the tools into giving
2276
2277 570
2278 00:37:20,429 ~-~-> 00:37:23,879
2279 them a directional bias with the expectation falsely, I'll
2280
2281 571
2282 00:37:23,879 ~-~-> 00:37:26,999
2283 be it, that they're going to always know what direction the
2284
2285 572
2286 00:37:26,999 ~-~-> 00:37:29,729
2287 mark is gonna move every single day. And I'm going to tell
2288
2289 573
2290 00:37:29,729 ~-~-> 00:37:33,509
2291 you guys, I've been doing this almost 20 years, and I don't
2292
2293 574
2294 00:37:33,539 ~-~-> 00:37:38,219
2295 get it right every single day. Okay, you know, the secret is
2296
2297 575
2298 00:37:38,219 ~-~-> 00:37:42,989
2299 to my trading. I simply wait until everything lines up that
2300
2301 576
2302 00:37:42,989 ~-~-> 00:37:46,709
2303 I like to see where the majority of all my tools, not all of
2304
2305 577
2306 00:37:46,709 ~-~-> 00:37:49,679
2307 them the majority of the things that I'd like to see, based
2308
2309 578
2310 00:37:49,679 ~-~-> 00:37:53,969
2311 on my understanding what markets suggesting to me in other
2312
2313 579
2314 00:37:53,969 ~-~-> 00:37:58,469
2315 words, what profile and are we overall ripe for reversal?
2316
2317 580
2318 00:37:58,649 ~-~-> 00:38:01,919
2319 Are we in a trending condition, are we in a consolidation
2320
2321 581
2322 00:38:01,919 ~-~-> 00:38:04,469
2323 area where, you know, I don't want to be taking any kind of
2324
2325 582
2326 00:38:05,759 ~-~-> 00:38:08,339
2327 trading, you know, with the expectation that we're going to
2328
2329 583
2330 00:38:08,339 ~-~-> 00:38:12,449
2331 have a trending type of event unfold, because we're going to
2332
2333 584
2334 00:38:12,449 ~-~-> 00:38:16,379
2335 be working within a large consolidation. I use that as my
2336
2337 585
2338 00:38:17,459 ~-~-> 00:38:20,579
2339 building blocks. And then by using the market profiling to
2340
2341 586
2342 00:38:20,579 ~-~-> 00:38:23,789
2343 give me the initial clue as to where we may be trading, then
2344
2345 587
2346 00:38:23,789 ~-~-> 00:38:26,189
2347 I've started looking at actual individual market structure
2348
2349 588
2350 00:38:26,189 ~-~-> 00:38:28,949
2351 concepts on the three timeframes that I use for whatever
2352
2353 589
2354 00:38:28,949 ~-~-> 00:38:33,299
2355 type of trading I'm doing at the time. Because I am dynamic,
2356
2357 590
2358 00:38:33,299 ~-~-> 00:38:37,739
2359 I move from one timeframe or profile trading to another one
2360
2361 591
2362 00:38:37,739 ~-~-> 00:38:41,159
2363 week, I may be simply a day trader. In other weeks, I'll be
2364
2365 592
2366 00:38:41,279 ~-~-> 00:38:45,509
2367 short term trader. And I wish there's a way for me to teach
2368
2369 593
2370 00:38:45,509 ~-~-> 00:38:50,909
2371 that premise from moving from one dynamic to another. I
2372
2373 594
2374 00:38:50,909 ~-~-> 00:38:55,319
2375 can't, so that may be disappointing to you. But this is a
2376
2377 595
2378 00:38:55,319 ~-~-> 00:38:59,069
2379 limitation on me as a mentor, I just I don't know how to
2380
2381 596
2382 00:38:59,069 ~-~-> 00:39:02,879
2383 communicate that But I can give you concepts and approaches
2384
2385 597
2386 00:39:02,879 ~-~-> 00:39:06,149
2387 to do specific styles of trading. And you just have to wait
2388
2389 598
2390 00:39:06,149 ~-~-> 00:39:09,809
2391 for the opportunities for price action gives you that sweet
2392
2393 599
2394 00:39:09,809 ~-~-> 00:39:14,519
2395 spot in terms of being able to apply it. Okay? So by
2396
2397 600
2398 00:39:14,519 ~-~-> 00:39:17,789
2399 selecting a directional bias does not guarantee
2400
2401 601
2402 00:39:17,789 ~-~-> 00:39:20,669
2403 profitability, it's very important to understand that nor
2404
2405 602
2406 00:39:20,669 ~-~-> 00:39:23,369
2407 does it guarantee accuracy in either your trade direction
2408
2409 603
2410 00:39:23,369 ~-~-> 00:39:27,989
2411 and or your trade results. One traders bias may be bullish,
2412
2413 604
2414 00:39:28,229 ~-~-> 00:39:31,379
2415 okay. And they're looking for buys in that may exist inside
2416
2417 605
2418 00:39:31,379 ~-~-> 00:39:34,739
2419 the realm of another traders sell bias. They both can be
2420
2421 606
2422 00:39:34,739 ~-~-> 00:39:38,879
2423 correct and make money and even see both their respective
2424
2425 607
2426 00:39:38,879 ~-~-> 00:39:43,709
2427 profit objectives achieved. They both can be wrong and make
2428
2429 608
2430 00:39:43,709 ~-~-> 00:39:46,649
2431 money despite their respective profit objectives not being
2432
2433 609
2434 00:39:46,649 ~-~-> 00:39:51,089
2435 achieved. Again, it's not being about being, quote unquote,
2436
2437 610
2438 00:39:51,089 ~-~-> 00:39:55,289
2439 correct. It's about being profitable. However, they both
2440
2441 611
2442 00:39:55,289 ~-~-> 00:39:57,509
2443 could simply lose money and neither trade idea come to
2444
2445 612
2446 00:39:57,509 ~-~-> 00:40:00,899
2447 fruition. There is no black and white It's very important to
2448
2449 613
2450 00:40:00,899 ~-~-> 00:40:05,279
2451 understand that as a trader, you must enter the gray and be
2452
2453 614
2454 00:40:05,279 ~-~-> 00:40:08,579
2455 comfortable with the less than perfect visibility trades
2456
2457 615
2458 00:40:08,579 ~-~-> 00:40:13,289
2459 with the the foresight that you're expecting don't exist.
2460
2461 616
2462 00:40:13,679 ~-~-> 00:40:16,979
2463 Nobody has a crystal ball. I don't have it. I'm still
2464
2465 617
2466 00:40:16,979 ~-~-> 00:40:21,419
2467 trading on the probabilities, not the perfect scenario.
2468
2469 618
2470 00:40:21,569 ~-~-> 00:40:26,909
2471 There's no perfect scenario, okay? You, as a trader will see
2472
2473 619
2474 00:40:26,909 ~-~-> 00:40:29,549
2475 trades materialize that will provide you plenty of profit
2476
2477 620
2478 00:40:29,549 ~-~-> 00:40:34,499
2479 taking potential. live there. Don't expect 100% it's not
2480
2481 621
2482 00:40:34,499 ~-~-> 00:40:37,709
2483 going to happen. Okay, I guarantee you. The only thing 100%
2484
2485 622
2486 00:40:37,709 ~-~-> 00:40:40,709
2487 is going to happen is you're going to go nuts, expecting an
2488
2489 623
2490 00:40:40,709 ~-~-> 00:40:46,739
2491 impossibility. Find your timeframe as a trader, determine
2492
2493 624
2494 00:40:46,739 ~-~-> 00:40:50,129
2495 the market structure given for that timeframe. Trade within
2496
2497 625
2498 00:40:50,129 ~-~-> 00:40:53,549
2499 that respective market structure and perform your targeting
2500
2501 626
2502 00:40:53,609 ~-~-> 00:40:56,999
2503 on the highest end mid level timeframes. And I promise you,
2504
2505 627
2506 00:40:57,269 ~-~-> 00:41:01,049
2507 you'll have more than enough trades laid at your feet. But
2508
2509 628
2510 00:41:01,049 ~-~-> 00:41:03,989
2511 it's not about trading every day. And it's not about
2512
2513 629
2514 00:41:04,379 ~-~-> 00:41:08,039
2515 capturing 1000 pips a month, okay? It's about consistently
2516
2517 630
2518 00:41:08,039 ~-~-> 00:41:12,089
2519 harvesting profits out of the marketplace, keeping risk low
2520
2521 631
2522 00:41:12,539 ~-~-> 00:41:16,679
2523 and your action level low. Don't try to trade a whole lot.
2524
2525 632
2526 00:41:16,859 ~-~-> 00:41:20,519
2527 Keep your trading controlled. That way you can control your
2528
2529 633
2530 00:41:20,519 ~-~-> 00:41:24,869
2531 emotions. your expectations will be kept realistic and
2532
2533 634
2534 00:41:24,869 ~-~-> 00:41:27,179
2535 you're going to live comfortably in the gray