ICT - Sniper Course - 02 - Bootcamp module - Time and Price Theory and Fractals.srt

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ICT: Okay folks, we are in The second

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part of the ICT scout sniper field

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training guide,

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and this

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episode is going to be dealing with

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boot camp.

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Okay, now what are we gonna be covering

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in this presentation?

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Well first we're gonna be reviewing the

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previous episodes assignment, the mark

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referring to time of day and the effects

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it has on price. We're gonna be looking

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at the day of the week, and again, its

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influence over price. We're gonna be

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covering institutional orders and

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pairing of orders. We're gonna be

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briefly introducing the market makers

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business model. We're

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gonna be looking at characteristics of a

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price swing,

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specifically dealing with time.

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Price

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and melding the two with support and

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resistance.

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We're gonna discuss price fractals and

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their role in analysis.

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And we're going to give you another

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homework assignment

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price reactions.

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Okay, we are looking at a daily screen

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capture of the Euro USD pair. And this

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is a daily chart again, it's

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specifically highlighting a swing in

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price that we're going to be dealing

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with. It's going to be in the latter

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stages of this price swing. But it's not

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imperative that you understand what

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caused that swing lower at this

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juncture, because we will cover in

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greater detail all of these types of

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moves and how we can fare that type of

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price action out in later episodes in

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the series. But for now, we're going to

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be dealing specifically with the fiber

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in this

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pair how we can look for

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turning points and how we can end

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dissipates certain characteristics and

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price action that repeat over and over

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and over again. And I promise you when

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you are finished watching this episode,

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you're gonna have a far greater

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understanding of what price action is

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like and how you can use it going

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forward in the new week of forex

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trading.

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Okay, if you remember the last episode,

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I gave you some homework regarding the

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first week of july of 2013. Now if

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you're watching this video and it's a

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number of years old, I apologize that

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you got to the party too late but that's

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not my fault now as it but we're going

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to go over some some details here so

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that we can at least a digest the the

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main focal points and how you can use it

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going forward. These are very generic

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concepts, they do not fall out of favor.

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They're not a fad gimmick indicator.

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These are essential core tenants to

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price out And I promise if you apply

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these things not only just to the fiber

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pair, but if you look at the cable, and

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all the other majors and

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the exotics as well.

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You'll see these reoccurring themes that

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take place over and over again, in price

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action. Now the screen capture we're

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looking at here is a 15 minute basis.

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And we're going

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to digest

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a lot of information just in this small

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sample size of price data. But let's

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look at the second portion of study we

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gave as part of your assignment in the

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previous episode.

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Now we're looking at a price rally.

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Okay, and in this price swing, we're

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going to be breaking this specific price

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swing down, and how we can utilize

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generic concepts that go along with

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every facet of smart money trading. Now,

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again, this is a 15 minute timeframe,

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but we're going to Applying Smart Money

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concepts to this timeframe that are

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based on a higher time frame, which is

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where the institutional level traders

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and banking traders do the majority of

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their analysis.

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Okay, folks, we are looking at the

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fiber. Euro USD is the daily chart, and

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this is the top or the highest point of

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the price swing that we're going to be

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analyzing and our first sample size

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of

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price action, but I

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want you to keep your eye on what takes

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place in price.

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And as price starts to slide down,

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you'll start to see a pause in price

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action here and you see this is the

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first bullish candle on the down like

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now if you look to the left over here,

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you'll see a small little consolidation

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in here.

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And you keep going over to the left,

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you'll see some old highs. A

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consolidation with some highs and bodies

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of candles. A short term high here and a

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turning point here and turning point

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here

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prior

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to that big leg up in price here

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Okay, this was the lowest low

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as price rallied up.

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It made a high here as well and then

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started to move lower

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in a very large price swing. It came

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down to a previous level of support. Now

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the reason why I have this level here is

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if you look at the body, and wicks of

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all the candles in here yet the below

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the wick here, the wick essentially in

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here, the top of this candles wick this

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work here, just stop there just a little

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bit. Again, same here, the bodies of the

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candles here, okay. And if you look at

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really essentially it's the 127 70 level

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and price when it come down to that same

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price point again, the body of the

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candle stopped here. granted the wick of

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the candle trade through just a little

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bit. Then we had the body that came here

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as well with a small little wick as

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well. The body of the candle Here comes

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right down to that same level rallies

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and trades right through it one more

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time and then starts to rally off. Price

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comes back down makes this smaller short

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term swing lower. Okay, and I'm promise

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I'm taking you somewhere I'm just going

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over the major price reactions and

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levels that you would be hunting in your

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future analysis in your demo account

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trading as you develop as a trader. When

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price bounced off this level, can right

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back down to the same point or

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consolidation in here. And as price come

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down to that same price level, notice we

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fail to get to that same old low or

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support level 127 70 price found the new

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level consolidated and moved out of that

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consolidation is starting to trade

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higher. Now this price swing in here,

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okay, is the basis of this price rally

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here. Now as price starts to move lower,

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we would be looking for areas where we

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would reasonably expect to see price

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to stall

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price bounced here.

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Now just for illustrative purposes,

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let's just use the very low the wick

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here.

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and double check the candle make sure I

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am in deed on the low, the low is

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130 58. And we're going to move Our

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level right to that point, they can see

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this swing high. Remember we talked

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about in the first episode, a swing high

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is a high that has a lower high on

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either side of it. Okay?

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We have a

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nice level of support resistance in

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here.

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Same thing here, my support resistance,

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my support resistance,

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support resistance.

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Again, same here, okay, we have a nice

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swing high as well. So this price point,

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while it is an off, even number, it

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could be very easily calibrated to

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130 60 level. Okay, which I think is a

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much more reasonable level to move this

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line to. And what that means is that

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institutions like to use large, round

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numbers. They're not so finicky in terms

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of To get like the the eights and the

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fours and the threes and such, in terms

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of filling, they do this use the round

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numbers to get their

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orders often.

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And I'm just going to

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key that in here manually so you can

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see.

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So I'm using 130 60 as around number,

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you see it gets right to a high here as

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well. And again, it doesn't really

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essentially change too much over here.

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But when we get down to a smaller

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timeframe, it might be more useful to us

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as we see the levels more closely

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calibrated to a smaller, round number.

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Now when price gives a bullish candle

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here, this by itself indicates a lot of

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different things. And this episode will

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not be own, long enough to go into the

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information that these types of candles

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create. But I promise we're going to

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delve into those things in later

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episodes. But for now we're going to be

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giving a lot of

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generic broad

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ideas about how smart money operates in

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the marketplace, and how you can more or

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less fall their coattails and try to

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hopefully see a profitable swing in your

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favor. Now as price continues to move

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lower Okay, this same bullish candle,

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okay, when we cause this bounce in here,

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something about this level at 130 60 was

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a catalyst. Okay, now institutional

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level trading, again, revolves around

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round numbers. So a lot of questions I

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get through email and if haunting a

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particular forum or such they will

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invariably ask me, hey, ICT, can we get

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a little bit more understanding of how

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it is that you arrive at what would be

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considered your key support resistance

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levels. And what do you mean by

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institutional levels when you say, price

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is going to come down to this

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institution level, or you expect to see

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particular level swept, okay? I'm going

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to cover that in this module. So that

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way you have a greater understanding

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that way not only will you understand my

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videos when I do reviews and in trade

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recaps, what I'm referring to, but

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you're also going to see how to look for

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it in your own charts. And you

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understand what it is specifically that

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price action is doing and why. So price

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bounces here, okay? At an old swing high

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bounces here, now, price trades through

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it. But if price ever comes back at that

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same level, that is a potential area of

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a setup. Okay, so we could look for a

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selling opportunity should price get to

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that same level again

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in the future

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You can see price trades right up to

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this level here. The high of this candle

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comes right in at 130 59. So we felt one

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PIP short of the actual round number.

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But you'll see when we get down to a

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smaller timeframe, it's really doesn't

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make that much of a difference because

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there's a lot of other factors that will

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be more beneficial to us.

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So now we have

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the next candle here, it sweeps up

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through it and then trades lower and

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closes on almost a low that the candle

275
00:13:34,920 --> 00:13:36,540
price trades right back up into a

276
00:13:36,540 --> 00:13:38,040
bullish candle here right into our

277
00:13:38,040 --> 00:13:40,650
130 60. Now the high again on this

278
00:13:40,650 --> 00:13:44,700
candle comes in at 130 73 so we're 13

279
00:13:44,700 --> 00:13:46,740
pips off so again, we're looking at a

280
00:13:46,740 --> 00:13:47,490
daily chart.

281
00:13:48,029 --> 00:13:49,889
So if we're going to be just

282
00:13:50,399 --> 00:13:52,319
off by 13 pips and we're looking at

283
00:13:52,319 --> 00:13:55,229
daily ranges. Again, these are all

284
00:13:55,679 --> 00:13:57,029
full daily bars.

285
00:13:57,690 --> 00:14:01,080
That's not bad in terms of You know,

286
00:14:01,080 --> 00:14:03,150
highlighting areas of potential

287
00:14:04,769 --> 00:14:05,789
setups or

288
00:14:05,789 --> 00:14:08,519
bounces and assets, your, your framework

289
00:14:08,519 --> 00:14:10,649
is going to build upon this. Because

290
00:14:10,649 --> 00:14:12,359
it's not about getting the weekly high

291
00:14:12,359 --> 00:14:14,219
and writing only to Friday, or the

292
00:14:14,219 --> 00:14:15,539
weekly, low Friday, you know, either

293
00:14:15,539 --> 00:14:17,249
Friday or getting 1000 pips a month,

294
00:14:17,669 --> 00:14:18,659
we're trying to keep up with the next

295
00:14:18,659 --> 00:14:21,629
guy learn to my concepts. That is not

296
00:14:21,629 --> 00:14:22,319
what you're trying to do in the

297
00:14:22,319 --> 00:14:24,059
beginning, what you're trying to do is

298
00:14:24,059 --> 00:14:27,449
build a fundamental base of price

299
00:14:27,449 --> 00:14:28,979
action. And we're going to build and

300
00:14:28,979 --> 00:14:31,409
expand on that each episode and a

301
00:14:31,409 --> 00:14:32,759
promise by the end of the eighth

302
00:14:33,059 --> 00:14:35,399
episode, you're going to have a wicked

303
00:14:35,399 --> 00:14:36,869
understanding of price action, and

304
00:14:36,869 --> 00:14:38,069
you're going to be blowing your socks

305
00:14:38,069 --> 00:14:40,139
off. And not only will you be impressing

306
00:14:40,139 --> 00:14:40,829
yourself

307
00:14:40,860 --> 00:14:42,300
as you go and deep,

308
00:14:42,689 --> 00:14:44,789
deeper study of price action, but you're

309
00:14:44,789 --> 00:14:47,279
going to start seeing by studying the

310
00:14:47,309 --> 00:14:50,789
other, quote unquote street money or

311
00:14:50,819 --> 00:14:53,219
less informed traders that invariably

312
00:14:53,219 --> 00:14:56,219
talk on forums or you see them even in

313
00:14:56,489 --> 00:14:57,299
so called

314
00:14:58,049 --> 00:14:59,999
expert circles, they really have no idea

315
00:14:59,999 --> 00:15:00,989
Do to talking about,

316
00:15:01,350 --> 00:15:05,580
okay. So, again, really go through this

317
00:15:05,580 --> 00:15:08,460
video module a lot, not just one sweep

318
00:15:08,460 --> 00:15:09,540
isn't going to do it, you're going to be

319
00:15:09,540 --> 00:15:10,770
going through this a couple different

320
00:15:10,770 --> 00:15:12,330
times. And there's a lot of things

321
00:15:12,330 --> 00:15:13,320
that's going to go right over your head

322
00:15:13,320 --> 00:15:15,480
the first few times, but I promise by

323
00:15:15,540 --> 00:15:18,240
taking notes, yes, taking notes.

324
00:15:18,270 --> 00:15:19,740
Remember, you must be having a notepad

325
00:15:19,740 --> 00:15:21,210
next to you as you watch these videos.

326
00:15:21,720 --> 00:15:24,030
Because when we discuss a specific

327
00:15:24,030 --> 00:15:26,640
topic, you're going to be wanting to

328
00:15:26,640 --> 00:15:29,280
know the details or specifics around

329
00:15:29,280 --> 00:15:31,260
that concept so that we, it's not that

330
00:15:31,260 --> 00:15:32,310
you have to go back to this video and

331
00:15:32,310 --> 00:15:35,070
see it or which video it was that

332
00:15:35,130 --> 00:15:36,930
specifically talked about this concept

333
00:15:36,930 --> 00:15:39,120
of that you'll know where to get the

334
00:15:39,120 --> 00:15:41,850
information from Okay, and have it apply

335
00:15:41,880 --> 00:15:44,310
without spending too much time chasing

336
00:15:44,310 --> 00:15:46,830
after where it is in the fundamental

337
00:15:46,830 --> 00:15:49,350
concept behind it all. So again, we have

338
00:15:49,350 --> 00:15:52,110
that 130 60 level in here. Okay, this

339
00:15:52,110 --> 00:15:53,640
daily candle trades up into it to

340
00:15:53,640 --> 00:15:54,060
squeeze

341
00:15:54,119 --> 00:15:57,059
through about 13 pips and then the next

342
00:15:57,599 --> 00:15:59,669
candle we have a very nice reaction

343
00:15:59,669 --> 00:16:02,309
here. Trading lower. Now again, all

344
00:16:02,309 --> 00:16:05,549
we're looking at is how prices moving on

345
00:16:05,549 --> 00:16:07,889
a daily chart. So as we see price moving

346
00:16:07,889 --> 00:16:11,189
lower, we just keyed off of a nice price

347
00:16:11,369 --> 00:16:13,529
level here. Now as price is trading

348
00:16:13,529 --> 00:16:15,419
lower now where would we reasonably

349
00:16:15,419 --> 00:16:17,579
expect price to trade back down to if it

350
00:16:17,579 --> 00:16:19,469
continues at all, because there's no

351
00:16:19,469 --> 00:16:20,549
guarantee that price is going to

352
00:16:20,549 --> 00:16:23,369
continue lower. But because we have seen

353
00:16:23,369 --> 00:16:24,569
price trade off such a

354
00:16:24,690 --> 00:16:25,290
nice,

355
00:16:25,889 --> 00:16:28,319
move lower, we broke through old highs.

356
00:16:28,619 --> 00:16:30,389
So now we're going to be looking for old

357
00:16:30,389 --> 00:16:34,439
lows. They are found here. And if price

358
00:16:34,529 --> 00:16:35,969
trades through that, where do we go

359
00:16:35,969 --> 00:16:38,999
next? These lows, and if price was to

360
00:16:38,999 --> 00:16:40,109
trade through these, where would we go

361
00:16:40,109 --> 00:16:44,369
next? These lows, okay. And that's what

362
00:16:44,369 --> 00:16:47,459
you're looking for, again. A

363
00:16:47,789 --> 00:16:50,699
consistently highly successful

364
00:16:51,210 --> 00:16:51,900
trader

365
00:16:53,340 --> 00:16:55,920
does majority of his analysis on the

366
00:16:55,920 --> 00:16:58,860
higher timeframes, okay? You don't have

367
00:16:58,860 --> 00:17:00,990
to spend so much time Off The Charts and

368
00:17:00,990 --> 00:17:02,340
you don't have to spend so much time on

369
00:17:02,340 --> 00:17:04,050
the weekly charts, but it's advisable.

370
00:17:04,590 --> 00:17:04,920
But

371
00:17:05,130 --> 00:17:06,000
certainly

372
00:17:06,029 --> 00:17:08,639
spend a lot of time on your daily, your

373
00:17:08,639 --> 00:17:12,719
four hour and one hour only if you can't

374
00:17:12,719 --> 00:17:15,509
really discern anything. Like right now,

375
00:17:15,509 --> 00:17:17,519
if you'd be trading in a short term day

376
00:17:17,519 --> 00:17:20,129
trading you, that's when you spend a

377
00:17:20,129 --> 00:17:21,299
whole lot of time in your alley. But

378
00:17:21,299 --> 00:17:22,949
really focus on your four hour and daily

379
00:17:22,949 --> 00:17:24,749
because that's where the banks, the

380
00:17:24,749 --> 00:17:26,429
institutional level traders and smart

381
00:17:26,429 --> 00:17:29,009
guys, like you're going to try to be in

382
00:17:29,009 --> 00:17:31,319
the future by applying these concepts.

383
00:17:31,859 --> 00:17:32,939
You're going to be spending the majority

384
00:17:32,939 --> 00:17:34,739
your time doing your analysis on these

385
00:17:34,739 --> 00:17:37,469
timeframes. Now it flies in the face of

386
00:17:37,469 --> 00:17:41,429
what you're commonly referred to as this

387
00:17:41,429 --> 00:17:45,719
is too slow. That's fine. That's exactly

388
00:17:45,719 --> 00:17:46,829
what you want, because you're going to

389
00:17:46,829 --> 00:17:49,259
learn later on this and in this episode,

390
00:17:49,589 --> 00:17:54,329
slow is good. Okay. And one of the

391
00:17:54,629 --> 00:17:56,819
central tenants to understanding what

392
00:17:56,819 --> 00:17:58,379
you should be doing as a trader is

393
00:17:58,919 --> 00:18:02,069
understanding what traders are hopefully

394
00:18:02,069 --> 00:18:03,899
trying to capitalize on and that's price

395
00:18:03,899 --> 00:18:05,519
movement. Now I'll give you a quick

396
00:18:05,519 --> 00:18:06,599
question before we go any further.

397
00:18:07,860 --> 00:18:09,630
Can you as a retail trader,

398
00:18:10,409 --> 00:18:11,219
move the market?

399
00:18:13,559 --> 00:18:14,939
No, you can't.

400
00:18:16,139 --> 00:18:19,409
Can we as a group of retail traders

401
00:18:19,409 --> 00:18:22,409
moved to market? Sure, on a short term

402
00:18:22,409 --> 00:18:24,809
basis, but not very much. And we're

403
00:18:24,809 --> 00:18:26,819
talking about a minor little blip in

404
00:18:26,819 --> 00:18:29,789
price action. So who is it that moves

405
00:18:29,789 --> 00:18:31,889
price? Who can take price from these

406
00:18:31,889 --> 00:18:35,759
levels here, all the way down here. They

407
00:18:35,759 --> 00:18:38,429
are the large dominant players or what

408
00:18:38,459 --> 00:18:40,079
is commonly referred to as the smart

409
00:18:40,079 --> 00:18:43,049
money. Same entity takes price from

410
00:18:43,049 --> 00:18:44,309
these levels up to here.

411
00:18:45,119 --> 00:18:47,459
And vice versa from this high and this

412
00:18:47,459 --> 00:18:47,759
low

413
00:18:48,540 --> 00:18:50,250
and this low to these highs

414
00:18:51,420 --> 00:18:53,730
this high down to these lows.

415
00:18:55,079 --> 00:18:56,999
So the question begs is this

416
00:18:58,349 --> 00:19:00,479
if you're not spending time Trying to

417
00:19:00,479 --> 00:19:03,869
learn what it is that they do. Okay, on

418
00:19:03,869 --> 00:19:07,079
a larger timeframes? Aren't you really

419
00:19:07,079 --> 00:19:09,599
shooting in the dark? I mean, you're

420
00:19:09,599 --> 00:19:11,069
really not giving yourself any real,

421
00:19:11,549 --> 00:19:13,769
measurable chance you're stacking the

422
00:19:13,769 --> 00:19:15,509
odds against yourself, if you're looking

423
00:19:15,509 --> 00:19:18,299
at timeframes less than 60 minutes all

424
00:19:18,299 --> 00:19:20,369
the time, because there's no there's no

425
00:19:20,369 --> 00:19:22,199
neon sign jumping out on your chart

426
00:19:22,199 --> 00:19:24,989
saying, Okay, this is a buy. Now, you

427
00:19:24,989 --> 00:19:26,489
may believe that's the case, but I can

428
00:19:26,489 --> 00:19:29,039
assure you that is not how it works. If

429
00:19:29,039 --> 00:19:31,949
you spend the time in the exercises that

430
00:19:31,949 --> 00:19:32,909
we're going to be covering in this

431
00:19:32,909 --> 00:19:35,999
episode, really roll your sleeves up,

432
00:19:36,749 --> 00:19:38,609
get yourself some time in front of the

433
00:19:38,609 --> 00:19:42,179
charts and spend some study not looking

434
00:19:42,179 --> 00:19:44,189
for trades. You want to be studying what

435
00:19:44,189 --> 00:19:46,409
price has done in the past, why it's

436
00:19:46,409 --> 00:19:49,529
behave that way. And I promise you will

437
00:19:49,529 --> 00:19:51,419
activate your reticular activating

438
00:19:51,419 --> 00:19:53,369
system where it basically tells you

439
00:19:54,089 --> 00:19:55,769
every time you see something that you've

440
00:19:55,799 --> 00:19:58,169
grown accustomed to seeing your your

441
00:19:58,169 --> 00:19:59,849
brain will immediately allow that to

442
00:19:59,849 --> 00:20:01,049
happen. Come into your mind and you'll

443
00:20:01,049 --> 00:20:02,729
receive it. And you'll say, Okay, the

444
00:20:02,729 --> 00:20:05,249
last time I saw this happened, this is

445
00:20:05,249 --> 00:20:08,849
what transpired as a later effect. If

446
00:20:08,849 --> 00:20:11,249
you don't first train your mind to see

447
00:20:11,249 --> 00:20:13,109
what it is that prices have done in the

448
00:20:13,109 --> 00:20:14,609
past, and it repeats over and over and

449
00:20:14,609 --> 00:20:17,759
over again, invariably, you're going to

450
00:20:17,759 --> 00:20:19,619
be a better trader because of it. Now,

451
00:20:19,619 --> 00:20:21,329
I'm not saying better trader is

452
00:20:21,329 --> 00:20:23,519
consistently profitable. That's nothing

453
00:20:23,519 --> 00:20:25,319
that I can promise. But I can promise

454
00:20:25,319 --> 00:20:28,349
that you have a much greater grasp on

455
00:20:28,349 --> 00:20:30,269
what price action is doing. So then you

456
00:20:30,269 --> 00:20:32,669
can start applying some concepts, either

457
00:20:32,669 --> 00:20:34,439
from your own repertoire or your toolbox

458
00:20:34,439 --> 00:20:37,259
that will assist you and making trade

459
00:20:37,259 --> 00:20:39,329
decisions. Now, again, I'm not

460
00:20:39,359 --> 00:20:41,009
advocating you use real money,

461
00:20:41,610 --> 00:20:42,360
learn

462
00:20:42,660 --> 00:20:44,610
to develop into the trader that you

463
00:20:44,610 --> 00:20:47,130
aspire to be with these ideas to

464
00:20:47,130 --> 00:20:49,710
stimulate your development. Again, I

465
00:20:49,710 --> 00:20:51,150
don't want to credit for your success,

466
00:20:51,210 --> 00:20:52,410
and I don't want to credit for your

467
00:20:52,410 --> 00:20:55,080
losses either. So please be responsible

468
00:20:55,080 --> 00:20:56,250
with the information I'm presenting with

469
00:20:56,250 --> 00:20:58,590
you in these modules because again, I'm

470
00:20:58,590 --> 00:21:02,070
not act As an advisor, but on the

471
00:21:02,070 --> 00:21:04,170
showing you the things I do in my own

472
00:21:04,170 --> 00:21:05,730
trading and what I've done for almost

473
00:21:05,730 --> 00:21:08,100
two decades, and I promise if you spend

474
00:21:08,100 --> 00:21:09,330
some time with it, you're going to see

475
00:21:09,330 --> 00:21:13,680
some value in it. So we have this 130 60

476
00:21:13,680 --> 00:21:16,140
level in here, okay, and price starts to

477
00:21:16,140 --> 00:21:21,360
trade off. And as price moves lower,

478
00:21:21,780 --> 00:21:24,420
again, we're eyeballing these levels in

479
00:21:24,420 --> 00:21:27,180
here. Now, as price starts to move into

480
00:21:27,180 --> 00:21:29,460
these lows, we could reasonably expect

481
00:21:29,460 --> 00:21:32,790
to see pauses bounces, but you can see

482
00:21:32,790 --> 00:21:35,790
there's a very large acceleration moving

483
00:21:35,790 --> 00:21:36,300
lower

484
00:21:39,150 --> 00:21:40,800
price just

485
00:21:40,800 --> 00:21:42,360
gets a small little bounce in here, this

486
00:21:42,360 --> 00:21:44,490
little bullish candle, okay, and that's

487
00:21:44,550 --> 00:21:46,020
on the heels of these

488
00:21:46,470 --> 00:21:48,000
lows here. Okay.

489
00:21:48,810 --> 00:21:50,880
But price eventually trades all the way

490
00:21:50,880 --> 00:21:54,930
down right into this 127 70 level,

491
00:21:55,080 --> 00:21:56,520
again, which is that level we have over

492
00:21:56,520 --> 00:21:59,130
here and these lows here

493
00:22:00,000 --> 00:22:02,880
See how price reacts there? Now?

494
00:22:05,250 --> 00:22:08,100
There, there really isn't any magic to

495
00:22:08,100 --> 00:22:11,520
this isn't simply understanding what the

496
00:22:11,520 --> 00:22:13,020
institutions have done in the past at

497
00:22:13,020 --> 00:22:14,670
that particular level. And when price

498
00:22:14,670 --> 00:22:17,550
comes back down to it, we anticipate the

499
00:22:17,550 --> 00:22:20,340
same reaction or similar reaction, in

500
00:22:20,340 --> 00:22:22,440
deference to what price is going to do.

501
00:22:22,710 --> 00:22:25,320
Next. We don't have a crystal ball, we

502
00:22:25,320 --> 00:22:26,430
don't know for sure what's going to

503
00:22:26,430 --> 00:22:27,900
happen, there's no guarantee that it's

504
00:22:27,900 --> 00:22:29,460
going to always transpire like this. So

505
00:22:29,460 --> 00:22:31,380
that's why we use stop loss orders. And

506
00:22:31,380 --> 00:22:34,200
we use sound prudent risk management

507
00:22:34,200 --> 00:22:37,140
modules, models, rather, where it gives

508
00:22:37,170 --> 00:22:37,650
us

509
00:22:37,950 --> 00:22:38,610
a shield.

510
00:22:39,000 --> 00:22:40,890
Okay, we're not we're not expecting

511
00:22:40,890 --> 00:22:42,810
perfection. We're not expecting to know

512
00:22:42,810 --> 00:22:44,640
every single swing in the marketplace.

513
00:22:44,820 --> 00:22:46,440
We're not expecting to not be stopped

514
00:22:46,440 --> 00:22:48,720
out in trades, we're expecting to be

515
00:22:49,110 --> 00:22:50,670
more consistently

516
00:22:51,780 --> 00:22:52,530
positive

517
00:22:52,829 --> 00:22:55,169
than negative and permitting ourselves

518
00:22:55,169 --> 00:22:57,479
to have that occasional and maybe even

519
00:22:57,479 --> 00:23:01,619
string of incorrect I'll use that term

520
00:23:01,619 --> 00:23:02,759
for now because I don't want to talk in

521
00:23:02,759 --> 00:23:05,759
terms of profitability yet in terms of

522
00:23:06,119 --> 00:23:09,209
correctness in our analysis, okay,

523
00:23:09,239 --> 00:23:12,089
that's where you want to be focused on

524
00:23:12,089 --> 00:23:14,159
now you want to be looking at, are you

525
00:23:14,159 --> 00:23:15,719
doing the same thing consistently over

526
00:23:15,719 --> 00:23:18,209
and over and over again, with a large

527
00:23:18,209 --> 00:23:23,489
sample size of data that supports this

528
00:23:23,489 --> 00:23:25,049
theory. Okay, I'm going to give you a

529
00:23:25,049 --> 00:23:26,969
whole lot of things to look at that you

530
00:23:26,969 --> 00:23:29,039
can study on your own. Because I see

531
00:23:29,039 --> 00:23:33,749
this also. If you're new to trading, and

532
00:23:33,749 --> 00:23:35,579
you have your your charts open, maybe

533
00:23:35,579 --> 00:23:36,839
you're at work or maybe you come home

534
00:23:36,839 --> 00:23:38,789
from work and use, you know, over the

535
00:23:38,789 --> 00:23:40,949
table, tennis table yet your laptop or

536
00:23:40,949 --> 00:23:42,539
iPad or whatever it is you may be using

537
00:23:42,539 --> 00:23:45,599
to look at charts. And you're looking at

538
00:23:45,599 --> 00:23:48,599
these price charts and you're staring at

539
00:23:48,599 --> 00:23:50,729
it like a deer in headlights, trying to

540
00:23:50,729 --> 00:23:52,289
figure out what it is that you should be

541
00:23:52,289 --> 00:23:55,499
seeing. A lot of that fog is going to be

542
00:23:55,499 --> 00:23:57,629
lifted. Okay, won't be completely

543
00:23:57,629 --> 00:23:59,429
eradicated but it's gonna be lifted in

544
00:23:59,429 --> 00:24:00,809
this Episode,

545
00:24:00,960 --> 00:24:01,710
okay, so

546
00:24:02,790 --> 00:24:05,490
you can clearly see just by this simple

547
00:24:05,490 --> 00:24:07,050
approach of looking at the higher

548
00:24:07,050 --> 00:24:10,770
timeframe, charts here. Look at the nice

549
00:24:10,770 --> 00:24:12,690
price moves here from this same level

550
00:24:12,690 --> 00:24:15,540
with this highlighted here. Okay? If we

551
00:24:15,540 --> 00:24:17,760
look in terms of pips. Now again, we're

552
00:24:17,760 --> 00:24:19,530
not expecting to get the entire move,

553
00:24:19,530 --> 00:24:21,120
guys, please don't build that as an

554
00:24:21,120 --> 00:24:23,550
expectation on your part. But if you

555
00:24:23,550 --> 00:24:25,710
look at that move from that level down

556
00:24:25,710 --> 00:24:29,370
to this level, that's 292 pips. That's

557
00:24:29,370 --> 00:24:31,440
pretty respectable. Now again, these are

558
00:24:31,440 --> 00:24:33,330
all daily candles, so it's less than a

559
00:24:33,330 --> 00:24:36,960
month. So if you break that down, it's

560
00:24:36,960 --> 00:24:40,500
pretty. It's a pretty good month. I know

561
00:24:40,500 --> 00:24:41,430
you're probably scratching Hey, wait a

562
00:24:41,430 --> 00:24:43,530
minute, I'm not making 500 pips a week.

563
00:24:43,650 --> 00:24:46,620
No, I don't shoot for those types of

564
00:24:46,620 --> 00:24:48,870
levels in terms of tips, because there's

565
00:24:48,870 --> 00:24:50,190
no guarantee you're gonna get that high.

566
00:24:50,490 --> 00:24:54,510
Two. It puts an own realistic level of

567
00:24:54,510 --> 00:24:58,560
expectation as a trader should not be

568
00:24:58,560 --> 00:25:00,270
doing as they're developing. Even A

569
00:25:00,270 --> 00:25:03,150
seasoned pro. I'm not gonna, you know,

570
00:25:03,390 --> 00:25:05,670
well, yeah, I guess I will I am, I could

571
00:25:05,670 --> 00:25:07,740
guess I would be able to be classified

572
00:25:07,740 --> 00:25:09,450
as a seasoned pro me almost two decades

573
00:25:09,450 --> 00:25:12,360
of doing it. Not specifically for expert

574
00:25:12,360 --> 00:25:16,620
trading, I think I would fall in the

575
00:25:16,620 --> 00:25:19,800
category as a seasoned pro. And I don't

576
00:25:20,070 --> 00:25:22,110
have these high level expectations that

577
00:25:22,290 --> 00:25:26,160
new traders are expecting and I, I

578
00:25:26,160 --> 00:25:28,320
consider myself pretty avid in terms of

579
00:25:29,940 --> 00:25:31,860
price action, understanding, and

580
00:25:32,550 --> 00:25:35,250
I have a good feel what price is trying

581
00:25:35,250 --> 00:25:38,310
to do on any market any timeframe. But

582
00:25:38,310 --> 00:25:39,300
it doesn't mean I'm in there every

583
00:25:39,300 --> 00:25:41,880
single day, 15 times a day, because the

584
00:25:41,880 --> 00:25:43,530
common question is okay, once you

585
00:25:43,530 --> 00:25:45,090
understand that you understand more and

586
00:25:45,090 --> 00:25:46,980
more and more of it, then you can start

587
00:25:46,980 --> 00:25:49,080
trading more in terms of levers, you can

588
00:25:49,170 --> 00:25:50,490
take more trades and therefore you're

589
00:25:50,490 --> 00:25:52,140
going to be super rich and you can be

590
00:25:52,140 --> 00:25:55,500
the next George Soros. And that's not

591
00:25:55,500 --> 00:25:57,570
what happens. Okay? Because what happens

592
00:25:57,570 --> 00:25:59,970
is you eventually grow comfortable with

593
00:26:00,000 --> 00:26:01,290
The fact that you don't have to be in

594
00:26:01,290 --> 00:26:02,970
front of charts all the time, life is

595
00:26:02,970 --> 00:26:05,100
out there. And I like being a part of

596
00:26:05,100 --> 00:26:08,130
it. So don't think because you're

597
00:26:08,130 --> 00:26:09,480
learning all these concepts that you

598
00:26:09,480 --> 00:26:11,280
should be spending even more time

599
00:26:11,280 --> 00:26:14,370
trading. In fact, I'm hopefully gonna

600
00:26:14,400 --> 00:26:16,620
take your hand away from the keyboard

601
00:26:16,800 --> 00:26:18,600
and the mouse, so you don't trade all

602
00:26:18,600 --> 00:26:19,530
the time, and you're just gonna be

603
00:26:19,530 --> 00:26:21,870
looking for these really cheery setups.

604
00:26:22,350 --> 00:26:23,640
And that will allow you to go to the

605
00:26:23,640 --> 00:26:25,770
market and pull out when it's highly

606
00:26:26,400 --> 00:26:28,830
stacked in your favor versus what

607
00:26:28,860 --> 00:26:31,500
majority of you guys do. As new traders,

608
00:26:31,500 --> 00:26:32,850
you turn the chart on simply because you

609
00:26:32,850 --> 00:26:34,650
sat down after work, it's time to make

610
00:26:34,650 --> 00:26:34,980
money.

611
00:26:35,460 --> 00:26:36,840
It doesn't work like that, guys.

612
00:26:37,079 --> 00:26:39,959
Okay, so, again, this level here,

613
00:26:40,469 --> 00:26:42,509
something we could arrive at, simply

614
00:26:42,509 --> 00:26:44,939
based on old highs and low lows, and

615
00:26:44,939 --> 00:26:47,369
again, using the daily timeframe, okay.

616
00:26:47,879 --> 00:26:49,079
And there's a whole lot of other things

617
00:26:49,079 --> 00:26:50,369
that we're going to talk about not in

618
00:26:50,369 --> 00:26:52,019
this module, but when we get down to

619
00:26:52,019 --> 00:26:54,479
actually understanding how it is that we

620
00:26:54,479 --> 00:26:57,209
take trades and entries and such. We're

621
00:26:57,209 --> 00:26:58,649
going to get in here and start breaking

622
00:26:58,649 --> 00:27:01,319
down these little points of which you

623
00:27:01,319 --> 00:27:05,549
can use to fine tune a specific entry

624
00:27:05,549 --> 00:27:08,519
point and reasonable expectations and

625
00:27:08,549 --> 00:27:10,529
why where and why price is going to

626
00:27:10,919 --> 00:27:13,859
bounce and move extrapolated. Price

627
00:27:13,859 --> 00:27:17,249
surges and drops in like this here.

628
00:27:17,549 --> 00:27:19,439
Okay, we just covered this one here. Now

629
00:27:19,469 --> 00:27:20,429
we're not going to beat it to death

630
00:27:20,429 --> 00:27:21,479
because we are going to be breaking down

631
00:27:21,479 --> 00:27:25,319
this little section of price action. But

632
00:27:25,349 --> 00:27:27,659
moving ahead, you can see price does

633
00:27:27,659 --> 00:27:30,419
have a very, very aggressive move

634
00:27:30,719 --> 00:27:32,999
higher. And then we start to consolidate

635
00:27:32,999 --> 00:27:35,639
look at the wicks. Okay, see the wicks,

636
00:27:36,089 --> 00:27:38,339
they're all stabbing through that 3060

637
00:27:38,339 --> 00:27:39,989
level but the bodies are having a hard

638
00:27:39,989 --> 00:27:42,509
time making any measurable move lower,

639
00:27:42,509 --> 00:27:43,139
you see that

640
00:27:44,250 --> 00:27:45,330
and watch what happens.

641
00:27:50,130 --> 00:27:54,210
The same level now. Okay, becomes an

642
00:27:54,210 --> 00:27:56,760
inversion level where it was support

643
00:27:56,760 --> 00:28:01,320
here. Invert. Now. It's changed it Roll

644
00:28:01,740 --> 00:28:04,620
and now acts as resistance. And as price

645
00:28:04,620 --> 00:28:07,140
comes right through it again here. Now

646
00:28:07,140 --> 00:28:09,210
one northern side of it again. So now it

647
00:28:09,210 --> 00:28:12,690
resumes its roll of what support. Okay,

648
00:28:12,900 --> 00:28:15,030
so this tells you that the institutions

649
00:28:15,570 --> 00:28:18,180
are doing some pretty significant

650
00:28:18,180 --> 00:28:19,920
dealings around this level here.

651
00:28:20,459 --> 00:28:20,819
Okay,

652
00:28:21,119 --> 00:28:24,209
so as price moves away from here, and if

653
00:28:24,209 --> 00:28:25,799
you see any kind of type of retracement

654
00:28:25,799 --> 00:28:27,959
here, this is when you can start to hunt

655
00:28:28,169 --> 00:28:30,209
a buy opportunity because now we can

656
00:28:30,209 --> 00:28:33,419
trust with a certain measure of

657
00:28:33,419 --> 00:28:35,429
expectation that this has now gone to

658
00:28:35,819 --> 00:28:39,509
potentially hold price above that 130 60

659
00:28:39,509 --> 00:28:47,039
level. The price rally up here, this

660
00:28:47,039 --> 00:28:49,829
level here becomes sensitive because

661
00:28:50,219 --> 00:28:53,159
this old low here, which is these old

662
00:28:53,159 --> 00:28:55,799
highs here, okay, so again, we're

663
00:28:55,799 --> 00:28:58,799
looking and studying not just okay, well

664
00:28:58,799 --> 00:29:00,629
I'm gonna grab this high and this low If

665
00:29:00,629 --> 00:29:02,609
you just look at these highs and lows,

666
00:29:02,789 --> 00:29:04,919
it's this low and this high, until price

667
00:29:04,919 --> 00:29:06,779
gets these levels all long time you're

668
00:29:06,779 --> 00:29:08,999
waiting for, you're gonna, you're gonna

669
00:29:08,999 --> 00:29:09,989
be doing a whole lot of trading. So what

670
00:29:09,989 --> 00:29:11,249
are you gonna do, you're going to chase

671
00:29:11,249 --> 00:29:13,049
systems, you're going to chase something

672
00:29:13,049 --> 00:29:16,829
that you know, is more active. Okay? And

673
00:29:17,789 --> 00:29:19,559
that's problematic for a new trader

674
00:29:19,559 --> 00:29:21,209
because it's not about how many trades

675
00:29:21,209 --> 00:29:24,419
you take, it's the quality of the trades

676
00:29:24,509 --> 00:29:27,989
that you take. Okay, so now, when price

677
00:29:27,989 --> 00:29:30,239
moves away from this level here, we can

678
00:29:30,239 --> 00:29:32,939
start looking for other specific price

679
00:29:32,939 --> 00:29:36,059
points that will aid us in support

680
00:29:36,059 --> 00:29:36,719
resistance.

681
00:29:37,709 --> 00:29:39,509
Now, these old highs here,

682
00:29:40,439 --> 00:29:41,999
price trades right up into them again,

683
00:29:42,509 --> 00:29:45,929
okay, and then trades off. Now. Again,

684
00:29:45,929 --> 00:29:48,569
it's not about capturing every single

685
00:29:49,169 --> 00:29:51,299
major high and low, you just want

686
00:29:51,299 --> 00:29:53,639
trading opportunities. Just in this

687
00:29:53,669 --> 00:29:57,329
price swing, here's 191 pips, just this

688
00:29:57,389 --> 00:29:58,859
hundred 91 pips and we're talking about

689
00:29:58,859 --> 00:30:00,989
a week's worth of trading. And then

690
00:30:00,989 --> 00:30:04,139
price does what it snaps off again what

691
00:30:04,139 --> 00:30:05,519
did this rally take

692
00:30:07,290 --> 00:30:08,160
action off of

693
00:30:09,510 --> 00:30:10,620
see this high here

694
00:30:12,660 --> 00:30:15,600
see this swing low in here

695
00:30:17,400 --> 00:30:21,570
you have a lot of body candles and then

696
00:30:21,570 --> 00:30:26,400
boom here you see price rally up price

697
00:30:26,400 --> 00:30:31,320
punches through this high in this high

698
00:30:33,000 --> 00:30:36,600
and gives us a reaction here and then

699
00:30:36,600 --> 00:30:40,050
trades back into this candle as well.

700
00:30:41,610 --> 00:30:43,290
We're going to be looking at two

701
00:30:43,470 --> 00:30:47,190
sections of this market and we're gonna

702
00:30:47,190 --> 00:30:50,400
be looking at this move here and we're

703
00:30:50,400 --> 00:30:52,500
gonna be looking at this move down here

704
00:30:52,500 --> 00:30:55,110
so we're gonna be looking at trending

705
00:30:55,110 --> 00:30:56,790
environment which is what this is here

706
00:30:57,420 --> 00:31:00,570
and potential reversal area. We're gonna

707
00:31:00,570 --> 00:31:01,710
be looking at

708
00:31:02,130 --> 00:31:04,260
this specific

709
00:31:05,579 --> 00:31:08,579
price sample here. And it's a little bit

710
00:31:08,819 --> 00:31:11,339
different characteristic of this. That

711
00:31:11,339 --> 00:31:15,809
will not be so notable here. Okay, but

712
00:31:15,809 --> 00:31:18,569
we'll talk about it in in greater detail

713
00:31:18,929 --> 00:31:20,849
in other episodes but let's For now,

714
00:31:21,329 --> 00:31:22,889
let's take a look at this section and

715
00:31:22,889 --> 00:31:30,269
price action first. Okay, we are in that

716
00:31:31,169 --> 00:31:33,059
small little section of

717
00:31:34,500 --> 00:31:36,450
price. And what I'm going to do is I'm

718
00:31:36,450 --> 00:31:36,900
just gonna

719
00:31:38,310 --> 00:31:38,970
pull up

720
00:31:44,430 --> 00:31:46,140
this area here, as you can see

721
00:31:48,180 --> 00:31:51,210
now, the first episode I talked about,

722
00:31:51,390 --> 00:31:56,610
looking at the first of July, took about

723
00:31:56,610 --> 00:31:59,880
the ninth of July, okay and I wanted you

724
00:31:59,880 --> 00:32:03,150
to study what price was doing and all

725
00:32:03,150 --> 00:32:06,450
this sample size of data. Now again, we

726
00:32:06,450 --> 00:32:09,240
were talking about that section, this is

727
00:32:09,240 --> 00:32:11,040
where price was moving down, trading

728
00:32:11,040 --> 00:32:13,140
Lower, lower, lower aggressively, again

729
00:32:13,140 --> 00:32:16,620
off that 130 60 level that we noted. And

730
00:32:16,620 --> 00:32:18,780
again, I'm going to add that level back

731
00:32:18,780 --> 00:32:21,480
here so you can see it. Okay, and this

732
00:32:21,480 --> 00:32:24,060
is that daily move where it trades right

733
00:32:24,060 --> 00:32:27,060
up into it, and then had a bearish move

734
00:32:27,060 --> 00:32:29,460
lower. Okay, and then we started to move

735
00:32:29,460 --> 00:32:33,450
lower, and lower and lower. Because we

736
00:32:33,450 --> 00:32:36,270
study the higher timeframe, we can

737
00:32:36,270 --> 00:32:39,960
discern where the institutions and large

738
00:32:39,960 --> 00:32:46,500
traders are more apt to muscle, if you

739
00:32:46,500 --> 00:32:49,470
will, the price of a particular market

740
00:32:49,470 --> 00:32:51,270
one direction or the other. You as a

741
00:32:51,270 --> 00:32:53,520
retail trader me as a retail trader. I

742
00:32:53,520 --> 00:32:56,460
can't move the market, I have to rely on

743
00:32:56,460 --> 00:32:59,790
the entities that are large enough.

744
00:33:00,240 --> 00:33:03,780
Their orders and their buying and

745
00:33:03,780 --> 00:33:09,240
selling pull price out of the current

746
00:33:09,600 --> 00:33:11,670
status that it's at right now. For

747
00:33:11,670 --> 00:33:13,650
instance, when price was trading around

748
00:33:13,650 --> 00:33:16,170
that 130 60 level on here.

749
00:33:18,359 --> 00:33:19,919
Let me fix this level here.

750
00:33:24,990 --> 00:33:26,190
When it's trading here,

751
00:33:27,540 --> 00:33:29,820
large institutions come in and he put

752
00:33:29,910 --> 00:33:33,210
big orders through, okay? But they don't

753
00:33:33,210 --> 00:33:35,970
put all their orders in at one time.

754
00:33:36,000 --> 00:33:38,460
They have to work that order in because

755
00:33:38,460 --> 00:33:39,630
they're not like you and I were we're

756
00:33:39,630 --> 00:33:44,430
hoping to trade you know 100,000 of

757
00:33:44,430 --> 00:33:46,200
Euro, okay, they're not worrying about

758
00:33:46,200 --> 00:33:48,600
making $10 a pip, you they're moving

759
00:33:48,600 --> 00:33:52,950
massive blocks of price orders that

760
00:33:53,100 --> 00:33:56,640
hopefully can be filled before price

761
00:33:56,640 --> 00:33:59,340
starts to move away. So as price moves

762
00:33:59,340 --> 00:34:01,770
into these levels, They're putting small

763
00:34:01,770 --> 00:34:03,600
pieces in at a time.

764
00:34:03,960 --> 00:34:05,850
Okay, why did they do that?

765
00:34:06,510 --> 00:34:07,980
What is it specifically that they're

766
00:34:08,100 --> 00:34:11,610
trying to avoid? Much like anybody else,

767
00:34:11,610 --> 00:34:13,650
they want to get a good price. But

768
00:34:13,650 --> 00:34:16,500
because they're smart money and they're

769
00:34:16,500 --> 00:34:21,000
on a institutional level, they are huge.

770
00:34:21,060 --> 00:34:25,950
Okay? For instance, let's take a step

771
00:34:25,950 --> 00:34:28,500
back conceptually looking at the market.

772
00:34:28,650 --> 00:34:32,760
Okay, the Forex market you'll end up as

773
00:34:32,760 --> 00:34:35,160
a new trader, okay? We have a very

774
00:34:35,160 --> 00:34:38,190
childlike perspective of this is like a

775
00:34:38,190 --> 00:34:41,220
video game. Or this is this is an

776
00:34:41,220 --> 00:34:43,140
adventure. Okay, or this is going to be

777
00:34:43,140 --> 00:34:45,360
very fun. This is gonna be my new hobby.

778
00:34:46,830 --> 00:34:48,690
And we'll stick with the childlike

779
00:34:48,690 --> 00:34:52,920
theme. Okay, so this represents four

780
00:34:52,920 --> 00:34:58,410
acts. Looks inviting, doesn't just want

781
00:34:58,410 --> 00:35:01,530
to jump in there and have a split But

782
00:35:02,100 --> 00:35:04,230
we're going to use this analogy this

783
00:35:04,230 --> 00:35:06,660
small little pole here that will

784
00:35:06,660 --> 00:35:10,830
represent the market. Okay? The arena is

785
00:35:10,830 --> 00:35:13,680
the pole, okay and price is the water

786
00:35:14,700 --> 00:35:16,590
we can get in that pole

787
00:35:16,950 --> 00:35:18,750
and we can make little splashes around

788
00:35:19,170 --> 00:35:24,000
okay as retail but that water will not

789
00:35:24,000 --> 00:35:28,140
be displaced by retail traders will make

790
00:35:28,140 --> 00:35:30,330
small little minor little blips, okay,

791
00:35:30,330 --> 00:35:34,470
like you see here, okay. But when smart

792
00:35:34,470 --> 00:35:35,910
money gets involved,

793
00:35:36,330 --> 00:35:38,520
okay? They're like that elephant

794
00:35:39,090 --> 00:35:41,190
in the room. You can't really hide him.

795
00:35:41,220 --> 00:35:42,510
He's standing right there in front of

796
00:35:42,510 --> 00:35:45,150
you. Okay, imagine if that same elephant

797
00:35:45,150 --> 00:35:47,760
now decides it wants to join the pool

798
00:35:47,760 --> 00:35:48,210
party.

799
00:35:51,450 --> 00:35:52,380
What are you going to have?

800
00:35:52,410 --> 00:35:53,370
You're going to have a large

801
00:35:53,370 --> 00:35:56,790
displacement of water. They cannot hide

802
00:35:56,790 --> 00:35:59,730
it. Okay. They are invariably going to

803
00:35:59,730 --> 00:36:03,240
be noticed if you understand their

804
00:36:03,240 --> 00:36:07,020
footprints, okay? as price trades up to

805
00:36:07,020 --> 00:36:11,070
this level at 130 60 level, it's trading

806
00:36:11,070 --> 00:36:13,530
off, it trades through it again, and

807
00:36:13,530 --> 00:36:16,020
then trades off. It trades through it

808
00:36:16,020 --> 00:36:18,180
again, and then trades off. See this is

809
00:36:18,180 --> 00:36:21,570
the first telltale sign that somebody on

810
00:36:21,570 --> 00:36:23,790
the big level, okay, we don't need to

811
00:36:23,790 --> 00:36:25,980
know who specifically but we just know

812
00:36:25,980 --> 00:36:29,010
that somebody want a larger perspective

813
00:36:29,340 --> 00:36:30,930
is now getting involved with this

814
00:36:30,930 --> 00:36:33,480
market. And what are they doing? They're

815
00:36:33,480 --> 00:36:35,880
shorting. Okay, they're becoming sellers

816
00:36:36,240 --> 00:36:38,760
at an add a level now that we discerned

817
00:36:38,760 --> 00:36:41,580
on a daily chart that this is probably

818
00:36:41,580 --> 00:36:44,130
going to be an area that's sensitive,

819
00:36:44,610 --> 00:36:46,170
and price comes up, stops right on the

820
00:36:46,170 --> 00:36:48,120
dime here and trades off a little bit.

821
00:36:48,690 --> 00:36:50,970
Now what's happening is is they'll put

822
00:36:50,970 --> 00:36:53,280
orders in they'll sell a little bit and

823
00:36:53,280 --> 00:36:56,400
sell a little bit and sell sell so So

824
00:36:56,490 --> 00:36:58,560
eventually, when they knew they can put

825
00:36:58,560 --> 00:37:02,310
their last bit of Their trade on, okay.

826
00:37:03,780 --> 00:37:07,050
They will just stack their orders all in

827
00:37:07,050 --> 00:37:08,700
this level. And it may be a little bit

828
00:37:08,700 --> 00:37:10,590
above it a little bit below it, but

829
00:37:10,590 --> 00:37:12,210
they're giant generally trying to get an

830
00:37:12,210 --> 00:37:14,550
average price around that 130 60 level.

831
00:37:14,760 --> 00:37:17,850
Okay? It may be that 130 50 level as

832
00:37:17,850 --> 00:37:20,280
well, because it's a it's a half full

833
00:37:20,280 --> 00:37:22,830
figure minifigure level. So that may be

834
00:37:22,830 --> 00:37:24,060
the price level they're actually working

835
00:37:24,060 --> 00:37:27,030
to, but as price moves above, okay, you

836
00:37:27,030 --> 00:37:28,620
can see how every time it does this

837
00:37:28,620 --> 00:37:30,060
around that level, this look at this

838
00:37:30,090 --> 00:37:33,150
whole price action in here, you can see

839
00:37:33,150 --> 00:37:36,150
that this is a failure to run above this

840
00:37:36,150 --> 00:37:39,960
old high. Okay. Now when we see price

841
00:37:39,990 --> 00:37:42,660
trade off, I guess it fills in all of

842
00:37:42,660 --> 00:37:45,090
that price decline like it does here.

843
00:37:45,900 --> 00:37:48,720
Okay, this is smart money trying to get

844
00:37:48,720 --> 00:37:50,730
that same price action, they put a large

845
00:37:50,730 --> 00:37:54,870
block on here. Now their liquidity is

846
00:37:54,870 --> 00:37:57,570
limited to whatever's there at the time.

847
00:37:58,200 --> 00:38:01,080
So if there isn't a large pool of buyers

848
00:38:01,080 --> 00:38:05,400
here, okay, there will be a issue for

849
00:38:05,400 --> 00:38:06,840
them to get the rest of their orders

850
00:38:06,840 --> 00:38:08,970
off. So what they'll do is they'll put

851
00:38:08,970 --> 00:38:12,000
small and again to us, it would be

852
00:38:12,000 --> 00:38:15,090
large, but to them it's small blocks to

853
00:38:15,090 --> 00:38:17,580
get their overall average price of the

854
00:38:17,580 --> 00:38:18,840
net short position that they want to be

855
00:38:18,840 --> 00:38:22,320
establishing. Once it's established,

856
00:38:22,440 --> 00:38:27,450
okay, price will do what? Drop because

857
00:38:27,450 --> 00:38:29,340
there will not be any more buyers for

858
00:38:29,340 --> 00:38:31,530
the other side of their trade. Okay,

859
00:38:31,530 --> 00:38:32,850
there's no more buyers. So what's going

860
00:38:32,850 --> 00:38:34,560
to happen is it's going to create a

861
00:38:35,130 --> 00:38:37,620
heaviness in the marketplace. So now the

862
00:38:37,620 --> 00:38:42,180
net selling will take larger of toll on

863
00:38:42,210 --> 00:38:44,310
price action. And as price starts to

864
00:38:44,310 --> 00:38:47,160
trade back down, these every little

865
00:38:47,160 --> 00:38:50,280
rally in here, okay, will be new selling

866
00:38:50,280 --> 00:38:53,160
opportunities. Now many times you'll see

867
00:38:53,250 --> 00:38:55,740
traders see these rallies here and

868
00:38:55,740 --> 00:38:57,780
they'll chase that. How many times have

869
00:38:57,780 --> 00:38:59,970
you done that? See this type thing here?

870
00:39:00,000 --> 00:39:02,640
As Nance rallying up, I better chase it.

871
00:39:02,820 --> 00:39:04,320
Let me buy this is probably gonna go

872
00:39:04,320 --> 00:39:05,790
through these levels here, it's gonna go

873
00:39:05,790 --> 00:39:06,810
through these levels, it's probably

874
00:39:06,810 --> 00:39:08,460
gonna keep on going and maybe we'll see

875
00:39:08,460 --> 00:39:11,970
131 50 or whatever else, the guy in the

876
00:39:12,000 --> 00:39:13,800
forums or on the internet was talking

877
00:39:13,800 --> 00:39:14,820
about how it's going to go there,

878
00:39:15,030 --> 00:39:16,770
because they're cool little indicator

879
00:39:16,770 --> 00:39:19,080
sets up. Has nothing to do with any of

880
00:39:19,080 --> 00:39:23,430
that. Okay? If you start looking at how

881
00:39:23,430 --> 00:39:24,510
prices Now,

882
00:39:25,500 --> 00:39:28,110
moving lower, okay,

883
00:39:28,830 --> 00:39:31,020
you can see they're rapidly

884
00:39:31,260 --> 00:39:34,920
moving price to a specific price point

885
00:39:34,980 --> 00:39:39,120
where, remember that 127 70 level

886
00:39:41,040 --> 00:39:43,410
on a daily chart that we looked at.

887
00:39:45,030 --> 00:39:46,230
Let's put that in right here.

888
00:39:50,790 --> 00:39:52,440
I'm sorry if I'm boring you guys,

889
00:39:52,440 --> 00:39:56,730
because, you know, this isn't sexy. And

890
00:39:56,730 --> 00:39:58,440
it wasn't sexy. The first time I learned

891
00:39:58,440 --> 00:40:00,840
all this stuff either in fact, ignored

892
00:40:00,840 --> 00:40:04,530
it. I said this is this is so boring. It

893
00:40:04,530 --> 00:40:05,940
has nothing to do with making money. I

894
00:40:05,940 --> 00:40:08,340
want to get in and get out. Okay? Had I

895
00:40:08,340 --> 00:40:11,490
understood what I understand now. Okay,

896
00:40:11,490 --> 00:40:12,720
and if you're struggling with this right

897
00:40:12,720 --> 00:40:16,170
now, if you're falling asleep, try to

898
00:40:16,170 --> 00:40:19,680
really get this point. If you can't

899
00:40:19,710 --> 00:40:22,260
grasp this concept here,

900
00:40:24,540 --> 00:40:26,820
wild success will evade you.

901
00:40:28,170 --> 00:40:31,830
Consistent levels of success will evade

902
00:40:31,830 --> 00:40:34,920
you. Sure, you might have moments of

903
00:40:35,370 --> 00:40:37,440
profitability where you have a string of

904
00:40:37,440 --> 00:40:39,780
winners, but anybody can do that. If you

905
00:40:39,780 --> 00:40:42,390
have a career of consistency, then

906
00:40:42,390 --> 00:40:44,640
you're now you're talking, okay? Because

907
00:40:44,640 --> 00:40:46,140
you're going to be doing what? You're

908
00:40:46,140 --> 00:40:49,530
not expecting to be smart. Okay. Does it

909
00:40:49,530 --> 00:40:51,540
take a certain level of understanding

910
00:40:51,540 --> 00:40:53,190
certainly, but you're not trying to be a

911
00:40:53,190 --> 00:40:55,950
genius. Okay, I'm not a marketing Maven.

912
00:40:56,130 --> 00:40:58,590
I'm not in here. You know, understanding

913
00:40:58,590 --> 00:41:01,020
every detail or Fundamental driving

914
00:41:01,020 --> 00:41:02,880
force behind all these moves. But I

915
00:41:02,880 --> 00:41:05,670
understand by looking at price action,

916
00:41:06,030 --> 00:41:08,190
what's the psychology behind it all? And

917
00:41:08,190 --> 00:41:09,540
that's what we're dealing with in this

918
00:41:09,600 --> 00:41:12,270
episode, because this is one of those

919
00:41:12,270 --> 00:41:15,270
Central Market tenants that just is

920
00:41:15,270 --> 00:41:17,520
glossed over in text, oh, well, you have

921
00:41:17,520 --> 00:41:19,620
to understand market structure, you have

922
00:41:19,620 --> 00:41:22,860
to understand market dynamics, internal

923
00:41:22,860 --> 00:41:26,250
pinnings of the market. Okay. And that

924
00:41:26,250 --> 00:41:28,440
was the actual lasting, the internal

925
00:41:28,440 --> 00:41:29,610
pinnings of the market. That was an

926
00:41:29,610 --> 00:41:30,780
expression I learned from Larry

927
00:41:30,780 --> 00:41:34,290
Williams. And the term mix, you know,

928
00:41:35,100 --> 00:41:37,770
intrigued me. But he didn't really go

929
00:41:37,770 --> 00:41:39,630
into great detail as to what the hell he

930
00:41:39,630 --> 00:41:42,450
was talking about, until you spend a lot

931
00:41:42,450 --> 00:41:45,900
more time and money in his work. And I'm

932
00:41:45,900 --> 00:41:47,400
not sure if it was planned because He is

933
00:41:47,610 --> 00:41:51,240
an educator by trade, but he is a

934
00:41:51,240 --> 00:41:53,490
successful trader as well. So, you know,

935
00:41:53,610 --> 00:41:55,890
one could argue is it really meant to be

936
00:41:55,890 --> 00:41:57,930
learned all at one time? Who knows? I

937
00:41:57,930 --> 00:42:00,840
don't know. But all I know is If you

938
00:42:00,840 --> 00:42:03,750
spend time understanding these ideas

939
00:42:03,750 --> 00:42:06,720
that we're expressing here, you will be

940
00:42:06,750 --> 00:42:09,960
far far greater in terms of a price

941
00:42:09,960 --> 00:42:13,260
action trader, then you learn in books

942
00:42:13,290 --> 00:42:15,660
or on your own, because you just don't

943
00:42:15,660 --> 00:42:18,420
learn this stuff. Okay? Just by turning

944
00:42:18,420 --> 00:42:19,380
on the computer and going to the

945
00:42:19,380 --> 00:42:21,090
internet, unless you're watching my

946
00:42:21,090 --> 00:42:24,330
channel, plug plug. So anyway, let's get

947
00:42:24,330 --> 00:42:26,400
back to what we're looking at

948
00:42:26,400 --> 00:42:30,210
specifically in here. Now, the first

949
00:42:30,210 --> 00:42:32,160
decline here and trades right back up

950
00:42:32,160 --> 00:42:35,070
into this level. Note that this price

951
00:42:35,250 --> 00:42:39,450
drop takes out a major, not major, but a

952
00:42:39,450 --> 00:42:42,030
significant swing here as we trade into

953
00:42:42,030 --> 00:42:46,620
that level. Now again, the main focal

954
00:42:46,620 --> 00:42:49,650
point is the higher timeframe key level,

955
00:42:49,650 --> 00:42:53,490
that 130 60 level. Okay? We don't go to

956
00:42:53,490 --> 00:42:55,920
the lower timeframes, hunting, a

957
00:42:55,920 --> 00:42:59,880
pattern, or a signal or a setup and then

958
00:42:59,880 --> 00:43:01,620
try To find the level that supports that

959
00:43:01,620 --> 00:43:03,930
notion, that's not how we're doing this,

960
00:43:03,960 --> 00:43:06,000
okay? You start on the higher timeframe

961
00:43:06,000 --> 00:43:08,910
chart, and you find key levels, okay?

962
00:43:09,150 --> 00:43:11,130
That are obvious, because if they're

963
00:43:11,130 --> 00:43:13,290
obvious, that means it takes all the

964
00:43:13,290 --> 00:43:15,150
guesswork out. Now it may take some

965
00:43:15,540 --> 00:43:19,050
patience on your part. That's really

966
00:43:19,050 --> 00:43:22,710
word p patient, the longing service is

967
00:43:22,710 --> 00:43:24,030
you're going to need to exercise a whole

968
00:43:24,030 --> 00:43:27,090
lot of patience because until price gets

969
00:43:27,090 --> 00:43:28,860
to these higher timeframe key levels,

970
00:43:29,370 --> 00:43:31,080
you aren't going to see institutional

971
00:43:31,080 --> 00:43:34,140
sponsorship behind the moves. Okay,

972
00:43:34,350 --> 00:43:36,450
unless you find a move like we're

973
00:43:36,450 --> 00:43:40,020
describing here, where we have a level

974
00:43:40,170 --> 00:43:42,930
noted in our timeframe, and another

975
00:43:42,930 --> 00:43:45,570
level based on that same time frame that

976
00:43:45,570 --> 00:43:47,520
is a higher level support level. So

977
00:43:47,520 --> 00:43:50,070
between these two levels here, we don't

978
00:43:50,070 --> 00:43:52,890
have a whole lot in terms of higher

979
00:43:52,890 --> 00:43:55,200
timeframe support long lines that you

980
00:43:55,290 --> 00:43:57,900
would really expect to see price turn

981
00:43:57,900 --> 00:44:01,080
around on a dime. Okay, now We do have

982
00:44:01,590 --> 00:44:05,160
intermediate term swing lows here. Okay.

983
00:44:05,670 --> 00:44:08,190
And we have short term swing lows here

984
00:44:08,280 --> 00:44:10,620
that cause pauses in the marketplace.

985
00:44:10,890 --> 00:44:13,410
Okay? But we're not focusing on the

986
00:44:13,410 --> 00:44:15,690
short term. We're trying to train our

987
00:44:15,690 --> 00:44:17,310
eyes to see the intermediate term price

988
00:44:17,310 --> 00:44:20,940
swings. Okay, so now let's take a closer

989
00:44:20,940 --> 00:44:23,340
look as to what's taking place in here.

990
00:44:25,050 --> 00:44:28,440
We're going to introduce the time of day

991
00:44:30,750 --> 00:44:32,430
and what we're going to do is we're just

992
00:44:32,430 --> 00:44:34,620
going to highlight with

993
00:44:35,820 --> 00:44:38,430
some arrows, okay? We're going to look

994
00:44:38,460 --> 00:44:38,880
at

995
00:44:43,920 --> 00:44:47,190
specific little areas where price

996
00:44:49,590 --> 00:44:51,030
made significant price.

997
00:44:52,320 --> 00:44:53,310
highs and lows.

998
00:44:58,920 --> 00:45:02,880
Okay, and What I'm doing is because on

999
00:45:02,880 --> 00:45:05,550
the higher timeframe, we had already

1000
00:45:05,550 --> 00:45:09,990
established a bearish tone to the market

1001
00:45:10,170 --> 00:45:11,880
where we were expecting this level to be

1002
00:45:12,030 --> 00:45:14,010
sensitive, and that we would expect to

1003
00:45:14,010 --> 00:45:17,430
see price moving lower. Okay? And where

1004
00:45:17,430 --> 00:45:19,500
would it be low moving lower towards

1005
00:45:19,860 --> 00:45:21,660
this level down here because it would be

1006
00:45:21,660 --> 00:45:24,000
the next higher level timeframe support

1007
00:45:24,000 --> 00:45:27,120
level. So we have a whole lot of range

1008
00:45:27,450 --> 00:45:30,570
to work between, okay, and this gets to

1009
00:45:30,570 --> 00:45:34,440
the central tenant of directional bias

1010
00:45:34,440 --> 00:45:38,490
because a lot of traders it just escapes

1011
00:45:38,490 --> 00:45:40,740
them, and it's simply because they're

1012
00:45:40,740 --> 00:45:44,310
expecting it to be. Again, real easy to

1013
00:45:44,310 --> 00:45:46,740
determine, because simply look at the

1014
00:45:46,740 --> 00:45:48,510
chart, well, you have to go and spend

1015
00:45:48,510 --> 00:45:49,950
some time on a higher timeframe because

1016
00:45:49,950 --> 00:45:51,300
that's where it's going to tell you. So

1017
00:45:51,300 --> 00:45:53,670
we have a range of 291 pips between the

1018
00:45:53,670 --> 00:45:56,760
high here and the low here these two

1019
00:45:57,210 --> 00:45:59,940
higher timeframe levels, so 290 pips

1020
00:46:01,230 --> 00:46:02,880
Now watch what happens. We're going to

1021
00:46:02,880 --> 00:46:04,140
be looking at

1022
00:46:05,460 --> 00:46:07,110
whoops, let me get the rest of my

1023
00:46:09,750 --> 00:46:10,680
highs in here.

1024
00:46:12,990 --> 00:46:21,150
And okay,

1025
00:46:21,480 --> 00:46:26,610
so we have highs represented here. Okay?

1026
00:46:27,240 --> 00:46:30,390
And we're gonna be looking for things

1027
00:46:30,390 --> 00:46:37,080
that are generically repeating. Okay, so

1028
00:46:37,710 --> 00:46:41,760
we're going to introduce also support

1029
00:46:41,760 --> 00:46:44,190
resistance. But before that we have to

1030
00:46:44,190 --> 00:46:50,310
break our chart down into time and data

1031
00:46:50,310 --> 00:46:52,650
week. Now the double lines represent

1032
00:46:52,650 --> 00:46:55,380
Sunday. So this vertical line to this

1033
00:46:55,380 --> 00:46:57,240
vertical line represents trading for

1034
00:46:57,240 --> 00:46:59,910
that week on a Monday from this vertical

1035
00:46:59,910 --> 00:47:01,950
line To this vertical line represents

1036
00:47:01,950 --> 00:47:04,140
Tuesday, this vertical line to this

1037
00:47:04,140 --> 00:47:06,780
vertical line is Wednesday, and this is

1038
00:47:06,780 --> 00:47:08,790
Thursday trading and then Friday then we

1039
00:47:08,790 --> 00:47:10,140
go into a new week on Sunday

1040
00:47:12,660 --> 00:47:13,290
on

1041
00:47:14,040 --> 00:47:17,340
your notepad write this very, very big,

1042
00:47:17,520 --> 00:47:21,690
okay and underline it in bearish market

1043
00:47:21,690 --> 00:47:24,660
environments. Okay, what I mean by

1044
00:47:24,660 --> 00:47:26,760
bearish market environments if the daily

1045
00:47:26,760 --> 00:47:31,560
chart is poised to move lower you have a

1046
00:47:31,560 --> 00:47:34,860
70% chance of seeing the high of The

1047
00:47:34,860 --> 00:47:39,060
Week form by Tuesday's London open.

1048
00:47:40,680 --> 00:47:42,570
Okay, so if you have a bearish

1049
00:47:42,600 --> 00:47:46,200
expectation in the marketplace expect

1050
00:47:46,230 --> 00:47:48,300
the high of the week to form by

1051
00:47:48,330 --> 00:47:51,480
Tuesday's long and open now sometimes

1052
00:47:51,570 --> 00:47:54,960
you may get that weird crazy move that

1053
00:47:54,990 --> 00:47:57,120
will take out Tuesday's high with

1054
00:47:57,120 --> 00:47:59,520
Wednesday and that may be because of a

1055
00:48:00,000 --> 00:48:04,320
major market moving indicator or report

1056
00:48:04,320 --> 00:48:07,110
that comes out. And that's going to be

1057
00:48:07,110 --> 00:48:09,300
that one wildcard event where, you know,

1058
00:48:09,450 --> 00:48:11,220
sure, you may have been in a profitable

1059
00:48:11,220 --> 00:48:12,240
trade. And if you didn't take any

1060
00:48:12,240 --> 00:48:13,890
profits as you went down, going into

1061
00:48:13,890 --> 00:48:16,110
Wednesday's trading, before it trades

1062
00:48:16,110 --> 00:48:17,850
and in runs your stop or runs out of

1063
00:48:17,850 --> 00:48:20,340
your position, you know, they're going

1064
00:48:20,340 --> 00:48:23,130
to happen, and I can't, I can't, I have

1065
00:48:23,130 --> 00:48:24,840
not been able to find a way to avoid

1066
00:48:24,840 --> 00:48:27,090
those types of things. Okay, but by far

1067
00:48:27,090 --> 00:48:28,560
and large, if you look at when markets

1068
00:48:28,560 --> 00:48:30,660
are trading softer, and moving lower,

1069
00:48:30,750 --> 00:48:32,190
based on the higher time frame, again,

1070
00:48:32,190 --> 00:48:34,440
we're specifically dealing with the

1071
00:48:34,440 --> 00:48:37,170
daily chart here, okay, but you can also

1072
00:48:37,170 --> 00:48:39,480
move down to the four hour, but really,

1073
00:48:39,870 --> 00:48:43,170
only if it's really not clear to you on

1074
00:48:43,170 --> 00:48:45,360
the daily. So again, the daily or the

1075
00:48:45,360 --> 00:48:46,500
four hour, that's where your higher

1076
00:48:46,500 --> 00:48:49,200
timeframe, key support resistance, and

1077
00:48:49,410 --> 00:48:51,510
bias is determined from because we're

1078
00:48:51,510 --> 00:48:53,100
looking at these higher level timeframe

1079
00:48:53,220 --> 00:48:54,540
support resistance levels that the

1080
00:48:54,540 --> 00:48:56,310
institutional traders are going to be

1081
00:48:56,370 --> 00:49:01,680
keying off of. Okay. So again, With the

1082
00:49:01,710 --> 00:49:03,810
notion that this markets moving lower

1083
00:49:03,960 --> 00:49:05,400
okay we would reasonably expect to see

1084
00:49:05,400 --> 00:49:07,290
the high the weak form on Tuesdays by

1085
00:49:07,680 --> 00:49:11,190
Tuesday's London open or Wednesday's

1086
00:49:11,250 --> 00:49:13,320
London open at the very latest okay?

1087
00:49:15,270 --> 00:49:16,800
doesn't mean you can't see the high the

1088
00:49:16,800 --> 00:49:18,690
weak form on Monday it just means that a

1089
00:49:18,690 --> 00:49:20,670
large percentage of the time you'll

1090
00:49:20,670 --> 00:49:23,580
start to see the high forming for that

1091
00:49:23,580 --> 00:49:25,560
particular week by Tuesday's London

1092
00:49:25,560 --> 00:49:27,510
open. Okay, and you can see that is the

1093
00:49:27,510 --> 00:49:30,840
event here. Okay, and I promise you if

1094
00:49:30,840 --> 00:49:32,070
it's the first time you heard this, it

1095
00:49:32,070 --> 00:49:33,510
sounds like a whole lot of hindsight

1096
00:49:33,510 --> 00:49:35,940
mobile hindsight mumbo jumbo it says to

1097
00:49:35,940 --> 00:49:38,220
perfectly cherry pick, go back over the

1098
00:49:38,220 --> 00:49:39,840
charts yourself, guys. Don't take my

1099
00:49:39,840 --> 00:49:41,850
word on it. Okay, study it. That's how

1100
00:49:41,850 --> 00:49:43,980
you get better at this. dig into it.

1101
00:49:44,040 --> 00:49:45,870
Okay, when bullish market structures

1102
00:49:45,900 --> 00:49:47,730
suggesting higher prices on daily chart,

1103
00:49:48,030 --> 00:49:50,040
look and see if the the low of the week

1104
00:49:50,040 --> 00:49:52,260
wasn't formed on Tuesday, okay, and the

1105
00:49:52,260 --> 00:49:54,210
times that it isn't, it's on Monday or

1106
00:49:54,210 --> 00:49:56,130
Wednesday. And what does that what does

1107
00:49:56,130 --> 00:49:59,220
that mean? It means a whole lot as we're

1108
00:49:59,220 --> 00:50:02,820
going to discuss here. We see the high

1109
00:50:02,820 --> 00:50:05,640
form for this week on Tuesday. Okay, and

1110
00:50:05,640 --> 00:50:07,800
as price trades up to that point, it's

1111
00:50:07,800 --> 00:50:09,870
coming off of this low here. Okay, so we

1112
00:50:09,870 --> 00:50:14,460
have this low as a reference point. And

1113
00:50:14,460 --> 00:50:16,620
it'd be nice if I kept that on the low

1114
00:50:16,620 --> 00:50:19,260
before it was drug away. Let's put that

1115
00:50:19,260 --> 00:50:21,570
back where it belongs. Okay? And what

1116
00:50:21,570 --> 00:50:22,650
we're going to do is we're going to draw

1117
00:50:22,650 --> 00:50:24,900
this all the way through the week.

1118
00:50:27,510 --> 00:50:29,640
Okay, because this level is sensitive,

1119
00:50:29,670 --> 00:50:30,420
because it's

1120
00:50:32,580 --> 00:50:35,400
a nice swing low, going into a key level

1121
00:50:35,400 --> 00:50:37,350
and trade it off. Even this little

1122
00:50:37,350 --> 00:50:40,140
bounce in here is tradable. But we are

1123
00:50:40,140 --> 00:50:43,830
focused on being what a seller because

1124
00:50:43,890 --> 00:50:46,650
of what the premise is that we have seen

1125
00:50:46,650 --> 00:50:48,780
price right up to this 130 60 level on a

1126
00:50:48,780 --> 00:50:50,310
daily chart as we discussed earlier in

1127
00:50:50,310 --> 00:50:53,220
this episode. As trade as price trades

1128
00:50:53,220 --> 00:50:55,530
down and starts to have these bounces.

1129
00:50:55,530 --> 00:50:58,710
We do not get all excited and frothing

1130
00:50:58,710 --> 00:51:01,170
at the mouth. Thank you Okay, now it's

1131
00:51:01,170 --> 00:51:02,820
going to trade higher and we want to be

1132
00:51:02,850 --> 00:51:06,630
higher. Okay? Think classic chart

1133
00:51:06,630 --> 00:51:09,510
patterns. Does this not look like a bull

1134
00:51:09,510 --> 00:51:12,810
flag? Okay, price rallies up

1135
00:51:12,840 --> 00:51:14,550
consolidates and it's even doing what

1136
00:51:14,550 --> 00:51:16,890
finding old support, see here, see the

1137
00:51:16,890 --> 00:51:18,840
support? See the support and what do

1138
00:51:18,840 --> 00:51:20,730
they teach us in a textbook? three

1139
00:51:20,730 --> 00:51:22,560
points of contact confirms the support

1140
00:51:22,560 --> 00:51:25,320
level, right? You don't think the

1141
00:51:25,320 --> 00:51:27,420
dealers know that stuff? They know what

1142
00:51:27,420 --> 00:51:28,770
you're going to do. They're going to

1143
00:51:28,770 --> 00:51:31,740
hold price here. Okay, and allow what

1144
00:51:32,040 --> 00:51:34,470
orders to stack up? What kind of orders

1145
00:51:34,470 --> 00:51:37,560
are going to stack up by orders? who's

1146
00:51:37,560 --> 00:51:41,250
buying retail, the lesson form traders.

1147
00:51:41,760 --> 00:51:45,030
Okay. Well, if they're buying it, who's

1148
00:51:45,030 --> 00:51:46,680
providing the other side of the trade?

1149
00:51:48,030 --> 00:51:50,100
The smart money. What?

1150
00:51:50,430 --> 00:51:52,860
Yep, the smart money. They're selling it

1151
00:51:52,860 --> 00:51:56,820
to them. Lock stock and barrel. Okay,

1152
00:51:57,180 --> 00:51:59,190
who's gonna win an arm wrestling match

1153
00:51:59,520 --> 00:52:03,060
the elephant For the child, the little

1154
00:52:03,060 --> 00:52:05,370
kid in the swimming pool, it's going to

1155
00:52:05,370 --> 00:52:07,350
be elephant. When elephant gets an

1156
00:52:07,350 --> 00:52:11,370
apple, boom, the kid is taken completely

1157
00:52:11,370 --> 00:52:14,520
out and the water is displaced. So what

1158
00:52:14,520 --> 00:52:19,830
do we see? displacement. Okay, price is

1159
00:52:19,830 --> 00:52:23,070
now taken driven lower, okay. Those that

1160
00:52:23,070 --> 00:52:24,870
would have been trading, what would be

1161
00:52:24,870 --> 00:52:27,540
whatever their idea of this is a climax

1162
00:52:27,570 --> 00:52:29,850
reversal or something along the lines

1163
00:52:29,850 --> 00:52:32,550
that would support a buying indication

1164
00:52:32,550 --> 00:52:34,440
in here. And again, we're not arguing or

1165
00:52:34,440 --> 00:52:36,810
making any case for that. But we're just

1166
00:52:36,810 --> 00:52:38,280
going to assume for a moment that

1167
00:52:38,880 --> 00:52:40,710
somebody out there in the retail world

1168
00:52:42,030 --> 00:52:44,340
assumed at that level was probably a

1169
00:52:44,340 --> 00:52:48,090
good area to buy. So if they bought

1170
00:52:48,090 --> 00:52:49,350
here, where would their stop loss be

1171
00:52:49,620 --> 00:52:52,170
right below that? Okay, so price is

1172
00:52:52,170 --> 00:52:54,540
driven, where to where the liquidity is

1173
00:52:54,540 --> 00:52:58,290
going to be here. Okay. So here we have

1174
00:52:58,290 --> 00:53:00,300
price trade down and trade rate. Back up

1175
00:53:00,300 --> 00:53:05,010
to what this level now becomes a another

1176
00:53:05,010 --> 00:53:08,100
selling opportunity who's going to sell

1177
00:53:08,670 --> 00:53:10,830
some more of the smart money. So they're

1178
00:53:10,830 --> 00:53:11,880
going to put some more of their orders

1179
00:53:11,880 --> 00:53:16,080
in, and then boom, it rises lower. Okay?

1180
00:53:17,610 --> 00:53:20,910
This short term swing low here, because

1181
00:53:20,910 --> 00:53:22,800
we're not drawing levels on it. Okay?

1182
00:53:24,060 --> 00:53:25,920
You can look at a lower five minute

1183
00:53:25,920 --> 00:53:28,110
chart and see even greater dynamic

1184
00:53:28,110 --> 00:53:29,760
support resistance levels, but I'm using

1185
00:53:29,760 --> 00:53:31,530
the 15 minute chart simply because

1186
00:53:31,890 --> 00:53:33,270
you'll learn later on that your trade

1187
00:53:33,270 --> 00:53:34,980
setups really going to form on this

1188
00:53:34,980 --> 00:53:38,550
timeframe. But we're gonna keep it

1189
00:53:39,450 --> 00:53:41,550
uniform and keep the continuity going.

1190
00:53:43,020 --> 00:53:44,070
And we're going to use

1191
00:53:45,630 --> 00:53:47,310
this slow here, price trades up to

1192
00:53:47,310 --> 00:53:49,830
there. And once we both blow through it,

1193
00:53:50,010 --> 00:53:52,440
we we trade through it again. Okay, but

1194
00:53:52,440 --> 00:53:54,300
we come right back up in this old swing

1195
00:53:54,300 --> 00:53:56,370
low here. So I could have another level

1196
00:53:56,370 --> 00:53:57,990
but to keep it clean on the charms and

1197
00:53:57,990 --> 00:54:00,930
keep it just like it have here. Don't

1198
00:54:00,930 --> 00:54:03,900
expect, you know, perfection in terms of

1199
00:54:03,900 --> 00:54:05,040
your support resistance levels,

1200
00:54:05,070 --> 00:54:06,870
sometimes they'll knock your socks off

1201
00:54:06,870 --> 00:54:11,250
and be so specifically you right to the

1202
00:54:11,250 --> 00:54:14,340
minute on on the PIP, but we're only

1203
00:54:14,340 --> 00:54:16,200
talking about here 14 pips in terms of

1204
00:54:16,200 --> 00:54:19,020
variance. So again, that's half less

1205
00:54:19,020 --> 00:54:20,790
than half of our normal stop losses.

1206
00:54:21,150 --> 00:54:23,190
Again. For those who don't know, I

1207
00:54:23,190 --> 00:54:25,350
usually trade around with a 30 PIP stop

1208
00:54:25,350 --> 00:54:27,960
loss. And again, we'll understand later

1209
00:54:27,960 --> 00:54:31,440
on why I use that later on again, not

1210
00:54:31,440 --> 00:54:36,480
now. So, we move into a new week. Okay,

1211
00:54:36,570 --> 00:54:39,420
price rallies up and this little pause

1212
00:54:39,420 --> 00:54:41,940
here and turn down happens where? Look

1213
00:54:41,940 --> 00:54:43,380
over here, see that?

1214
00:54:45,150 --> 00:54:47,400
Okay, so price trades down.

1215
00:54:48,660 --> 00:54:50,880
Okay, find some short term support,

1216
00:54:50,880 --> 00:54:52,020
which we're not going to look at because

1217
00:54:52,020 --> 00:54:52,890
it's going to be on the five minute

1218
00:54:52,890 --> 00:54:54,000
chart you can do that on your own

1219
00:54:54,720 --> 00:54:58,890
rallies through okay and does what blows

1220
00:54:58,890 --> 00:55:02,610
out swing high. Why? Because maybe at

1221
00:55:02,610 --> 00:55:04,920
this point, some guys have figured out

1222
00:55:04,920 --> 00:55:07,770
this is in a down move. Okay? So they're

1223
00:55:07,770 --> 00:55:09,600
going to be doing what they're gonna be

1224
00:55:09,600 --> 00:55:13,830
selling. Yeah, those guys sometimes in

1225
00:55:13,830 --> 00:55:16,710
the street, okay, get it right. But do

1226
00:55:16,710 --> 00:55:19,110
you think the elephant really wants them

1227
00:55:19,110 --> 00:55:22,560
in the pool with them? No. Okay, so

1228
00:55:22,560 --> 00:55:25,620
what's going to happen? Well, they're

1229
00:55:25,620 --> 00:55:28,050
going to be short. Okay? And they're

1230
00:55:28,050 --> 00:55:30,630
going to use this old high level to do

1231
00:55:30,630 --> 00:55:33,450
what? protect their position, right?

1232
00:55:33,900 --> 00:55:35,850
Even if they're selling down here, or

1233
00:55:35,850 --> 00:55:37,890
here, or maybe they saw this low here

1234
00:55:37,890 --> 00:55:38,880
and they want to be a seller, right?

1235
00:55:38,880 --> 00:55:40,980
They're great. What are they going to

1236
00:55:40,980 --> 00:55:43,620
use this for stop loss. It could be this

1237
00:55:43,620 --> 00:55:47,010
high here, or this one. So let's take a

1238
00:55:47,010 --> 00:55:48,000
look at what happens.

1239
00:55:52,020 --> 00:55:52,950
Here's your old high

1240
00:55:54,270 --> 00:55:57,570
and I'm going to use that level and

1241
00:55:57,570 --> 00:55:59,430
we're gonna just go above it a few pips

1242
00:55:59,430 --> 00:55:59,970
not much

1243
00:56:03,389 --> 00:56:05,519
Here you go. When price trades right

1244
00:56:05,519 --> 00:56:05,909
there,

1245
00:56:07,620 --> 00:56:09,780
the nature of the spread, does its work

1246
00:56:09,780 --> 00:56:10,320
right there.

1247
00:56:11,730 --> 00:56:13,920
What order would be resting here? Again,

1248
00:56:13,980 --> 00:56:15,360
assuming that the retail traders are

1249
00:56:15,360 --> 00:56:18,780
short, there's gonna be a buy. Stop

1250
00:56:18,780 --> 00:56:22,080
right here, buy stop. So when that price

1251
00:56:22,080 --> 00:56:24,960
trades up and stabs into that level

1252
00:56:24,960 --> 00:56:26,640
here, what's going to happen to that buy

1253
00:56:26,640 --> 00:56:28,830
stop, it becomes a market order to do

1254
00:56:28,830 --> 00:56:31,650
what buy, who's going to sell it to

1255
00:56:31,650 --> 00:56:35,790
them? Smart Money. And then when you see

1256
00:56:35,790 --> 00:56:38,820
price rally up like that, bang, what

1257
00:56:38,820 --> 00:56:40,560
they do to drive it down to their level,

1258
00:56:40,800 --> 00:56:42,480
okay? And now this is where they

1259
00:56:42,480 --> 00:56:43,020
liquidate

1260
00:56:43,200 --> 00:56:43,920
all their

1261
00:56:45,000 --> 00:56:46,680
short positions back here. Now they

1262
00:56:46,680 --> 00:56:48,420
could have, you know, liquidated summon

1263
00:56:48,420 --> 00:56:50,370
here. Okay, and that's what caused the

1264
00:56:50,730 --> 00:56:52,350
pause in here because now they're buying

1265
00:56:52,350 --> 00:56:54,600
back some other net short position that

1266
00:56:54,600 --> 00:56:57,180
they've assumed between the 130 60 and

1267
00:56:57,180 --> 00:57:00,840
150 level up here in this block of price

1268
00:57:00,840 --> 00:57:03,960
action. But as price trades down to this

1269
00:57:03,960 --> 00:57:05,850
level here, okay, they're essentially

1270
00:57:05,850 --> 00:57:09,180
now no longer heavily net short, they

1271
00:57:09,180 --> 00:57:11,910
may have some short still at one, but

1272
00:57:11,970 --> 00:57:14,010
essentially, they have been unloading

1273
00:57:14,010 --> 00:57:16,890
every time price dropped lower. Okay?

1274
00:57:17,850 --> 00:57:19,560
Because they're larger institutional

1275
00:57:19,560 --> 00:57:22,590
traders, they have to be exiting during

1276
00:57:22,620 --> 00:57:24,690
the move, but certainly driving price

1277
00:57:24,690 --> 00:57:26,730
down to a specific price point as we

1278
00:57:26,730 --> 00:57:29,310
noted on the higher time frame. Now,

1279
00:57:30,630 --> 00:57:32,430
when price gets to these levels here, we

1280
00:57:32,430 --> 00:57:34,290
could look for patterns to trade because

1281
00:57:34,290 --> 00:57:36,330
again, this would be a higher level

1282
00:57:36,330 --> 00:57:38,700
support level. Okay, and then you can

1283
00:57:38,700 --> 00:57:43,560
see, price does indeed rally up. Okay,

1284
00:57:43,560 --> 00:57:47,400
and for those that had been using these

1285
00:57:47,400 --> 00:57:50,970
points here, okay, and trade on a daily

1286
00:57:50,970 --> 00:57:52,830
timeframe, because there are nine to

1287
00:57:52,830 --> 00:57:54,780
five desk jockeys and it can't be

1288
00:57:54,780 --> 00:57:58,590
intraday traders. So use daily bars to

1289
00:57:58,620 --> 00:58:01,290
put their stop loss over Okay, those

1290
00:58:01,290 --> 00:58:04,260
guys are crushed as well and left

1291
00:58:05,790 --> 00:58:08,340
feeling bewildered. And like the game is

1292
00:58:08,340 --> 00:58:10,830
rigged. And you just learned that is in

1293
00:58:10,830 --> 00:58:12,720
fact it is rigged, and there but there's

1294
00:58:12,720 --> 00:58:14,730
a means of understanding how it's

1295
00:58:14,730 --> 00:58:15,870
rigged. Okay?

1296
00:58:17,640 --> 00:58:19,620
Let's look at these

1297
00:58:19,650 --> 00:58:24,030
specific times when price moved, okay,

1298
00:58:24,090 --> 00:58:30,240
this high here takes place at 1445 GMT,

1299
00:58:30,780 --> 00:58:34,590
or 1500 rather than 1500 GMT. This high

1300
00:58:34,590 --> 00:58:41,130
here takes place at 1500 GMT. This high

1301
00:58:41,130 --> 00:58:53,070
here is essentially 2323 30 GMT and this

1302
00:58:53,070 --> 00:58:57,480
high here is 11 GMT.

1303
00:59:00,870 --> 00:59:01,890
This high here

1304
00:59:04,380 --> 00:59:06,180
is 12 GMT.

1305
00:59:08,790 --> 00:59:09,840
And the high here

1306
00:59:12,000 --> 00:59:21,510
is 630 GMT. That's early New York oh I'm

1307
00:59:21,510 --> 00:59:24,750
sorry. I'm sorry early London open or

1308
00:59:24,750 --> 00:59:25,350
Frankfurt.

1309
00:59:27,360 --> 00:59:29,550
This is New York open.

1310
00:59:31,740 --> 00:59:32,760
This is

1311
00:59:35,280 --> 00:59:37,650
the very beginning of New York open.

1312
00:59:40,140 --> 00:59:41,550
This is Asia.

1313
00:59:45,240 --> 00:59:48,030
This is London close

1314
00:59:51,000 --> 00:59:52,980
and this is London close as well.

1315
00:59:54,480 --> 00:59:58,020
So you can see there are specific

1316
00:59:58,020 --> 00:59:59,940
turning points that are occurring at

1317
01:00:00,540 --> 01:00:04,320
Session open and closings, okay? And I

1318
01:00:04,320 --> 01:00:05,400
promised that we're going to go into

1319
01:00:05,400 --> 01:00:07,650
great detail as to what those specific

1320
01:00:07,650 --> 01:00:10,890
time pockets are. Okay? And in my

1321
01:00:10,890 --> 01:00:13,140
trading, I call them kill zones. It's

1322
01:00:13,140 --> 01:00:16,530
not because I'm supportive of serial

1323
01:00:16,530 --> 01:00:18,450
killing or, or the notion of killing

1324
01:00:18,450 --> 01:00:22,890
people. I adopt the mindset of a sniper,

1325
01:00:22,890 --> 01:00:25,830
but I don't I don't have, you know,

1326
01:00:27,300 --> 01:00:30,990
suicidal or, like

1327
01:00:33,480 --> 01:00:36,030
psychological issues where I'm attracted

1328
01:00:36,030 --> 01:00:37,770
to killing, okay, so don't think don't

1329
01:00:37,770 --> 01:00:40,170
think that's what this is. I just use it

1330
01:00:40,170 --> 01:00:44,520
to adopt a specific mindset. Okay. And I

1331
01:00:44,550 --> 01:00:47,220
view trading as a sharpshooting

1332
01:00:47,280 --> 01:00:49,590
exercise. Okay, much in terms of a

1333
01:00:49,590 --> 01:00:52,470
sniper. So, it's not that I'm supportive

1334
01:00:52,470 --> 01:00:55,920
of going out and shooting people. I'm

1335
01:00:55,950 --> 01:00:57,240
supportive of the idea of being a

1336
01:00:57,240 --> 01:00:59,520
marksman, okay, so please don't send me

1337
01:00:59,520 --> 01:01:02,550
nasty emails or, or leave comments that

1338
01:01:02,580 --> 01:01:05,040
I invariably forgot to turn off on my

1339
01:01:05,040 --> 01:01:07,170
YouTube channel, making comments about

1340
01:01:07,170 --> 01:01:10,350
how, you know, I shouldn't be supporting

1341
01:01:10,350 --> 01:01:12,060
the, you know, war or anything like

1342
01:01:12,060 --> 01:01:15,300
that. So please don't don't run with the

1343
01:01:15,300 --> 01:01:17,340
idea of the sniper theme, okay and think

1344
01:01:17,340 --> 01:01:19,080
that I'm supporting into killing of

1345
01:01:19,080 --> 01:01:19,920
human life.

1346
01:01:20,610 --> 01:01:22,290
But a lot of the themes I use in

1347
01:01:22,290 --> 01:01:25,050
teaching comes from my way of learning.

1348
01:01:25,110 --> 01:01:27,090
So I had to create a language for myself

1349
01:01:27,090 --> 01:01:28,680
to understand what it is I was seeing in

1350
01:01:28,680 --> 01:01:32,280
price action. And it also is valuable as

1351
01:01:32,280 --> 01:01:34,140
a means of communicating or creating a

1352
01:01:34,140 --> 01:01:37,440
vocabulary because a lot of this stuff

1353
01:01:38,070 --> 01:01:40,440
is it came through just staring at

1354
01:01:40,440 --> 01:01:42,660
charts. Now when I do get to concepts

1355
01:01:42,660 --> 01:01:46,200
that I learned from other people, I will

1356
01:01:46,200 --> 01:01:48,000
always give credit to where credit is

1357
01:01:48,000 --> 01:01:51,090
due. Okay. I believe that's should be

1358
01:01:51,090 --> 01:01:53,730
always the case. But you see many times

1359
01:01:53,730 --> 01:01:56,790
and I've seen my own work, okay. appear

1360
01:01:56,790 --> 01:01:58,350
in things that you could buy on the

1361
01:01:58,350 --> 01:02:01,050
internet, and I just recently bought a

1362
01:02:01,050 --> 01:02:04,200
new course. And I'm not going to say who

1363
01:02:04,200 --> 01:02:07,110
it is or what it is in this video. But I

1364
01:02:07,110 --> 01:02:08,700
was very disappointed to see something

1365
01:02:08,730 --> 01:02:12,690
of mine. And it is uniquely mine. And it

1366
01:02:12,690 --> 01:02:15,540
wasn't credited to me. And I'm very, you

1367
01:02:15,540 --> 01:02:17,580
know, disenchanted by the whole thing,

1368
01:02:17,580 --> 01:02:20,730
but I might talk about it later on, but

1369
01:02:20,730 --> 01:02:21,750
I'm certainly not going to bring it up

1370
01:02:21,750 --> 01:02:25,290
in this video series. But if you do see

1371
01:02:25,290 --> 01:02:28,530
a concept in this video series that I

1372
01:02:28,560 --> 01:02:31,350
personally learned from someone else, I

1373
01:02:31,350 --> 01:02:33,780
will certainly do my very best to give

1374
01:02:33,780 --> 01:02:38,490
them their credit as well. Let's look at

1375
01:02:39,210 --> 01:02:44,730
the notion of fractals in price action,

1376
01:02:45,270 --> 01:02:46,950
and we're gonna move over to our second

1377
01:02:46,950 --> 01:02:49,500
portion of price action and

1378
01:02:51,180 --> 01:02:51,990
study

1379
01:02:57,030 --> 01:03:00,930
this segment of price This is the second

1380
01:03:00,930 --> 01:03:03,480
portion of price that I was asking you

1381
01:03:03,480 --> 01:03:05,490
guys to study. And what I have here is

1382
01:03:05,700 --> 01:03:08,790
the price levels on a 15 minute basis

1383
01:03:08,790 --> 01:03:10,740
because remember, we talked about how

1384
01:03:10,740 --> 01:03:11,970
price is

1385
01:03:13,889 --> 01:03:14,999
universally

1386
01:03:15,990 --> 01:03:17,940
limited to trading within support

1387
01:03:17,940 --> 01:03:19,830
resistance levels, but each timeframe

1388
01:03:19,860 --> 01:03:21,780
has its own support resistance levels

1389
01:03:21,780 --> 01:03:24,090
created as price gyrates up and down.

1390
01:03:25,200 --> 01:03:27,090
What I did here is certainly not every

1391
01:03:27,090 --> 01:03:28,500
single one of them but what I'm want to

1392
01:03:28,500 --> 01:03:31,500
draw out with your eye is I want you to

1393
01:03:31,500 --> 01:03:34,830
see there's a specific overall price

1394
01:03:34,830 --> 01:03:38,940
structure here. Okay? Now, this concept

1395
01:03:39,600 --> 01:03:42,720
is not going to be fully explained and

1396
01:03:42,720 --> 01:03:44,820
understood by watching this one video.

1397
01:03:45,570 --> 01:03:47,670
But if you spend time in the charts

1398
01:03:47,670 --> 01:03:49,500
yourself, you'll start seeing these

1399
01:03:49,500 --> 01:03:51,720
things. repeat over and over and over

1400
01:03:51,720 --> 01:03:53,520
again. And it's one of those things you

1401
01:03:53,520 --> 01:03:55,650
have to keep looking at it before your

1402
01:03:55,650 --> 01:03:57,990
eye gets accustomed to seeing it and

1403
01:03:57,990 --> 01:04:01,410
then right away Your your brain will do

1404
01:04:01,410 --> 01:04:04,200
the magic, okay of seeing it remembering

1405
01:04:04,200 --> 01:04:05,640
Oh yeah, this is what this is, and then

1406
01:04:05,640 --> 01:04:06,810
boom, you'll know naturally what you

1407
01:04:06,810 --> 01:04:09,900
should be doing. And again, I'm not

1408
01:04:09,900 --> 01:04:11,160
talking about trading with your gut,

1409
01:04:11,310 --> 01:04:13,170
okay? This is what you do.

1410
01:04:13,830 --> 01:04:14,880
Buy with your eye,

1411
01:04:15,000 --> 01:04:16,590
okay, you trading what you see.

1412
01:04:18,240 --> 01:04:21,690
Price trades off of a level of support.

1413
01:04:22,110 --> 01:04:24,060
Okay, and we're just gonna assume that

1414
01:04:24,060 --> 01:04:26,280
that 132 figure was significant enough

1415
01:04:26,280 --> 01:04:29,070
to provide support and price rallies off

1416
01:04:29,070 --> 01:04:32,070
here. Okay. Price comes back down,

1417
01:04:32,100 --> 01:04:38,880
trades down into that 132 30 level,

1418
01:04:39,690 --> 01:04:44,940
essentially, okay and bounces and runs

1419
01:04:44,940 --> 01:04:48,180
through and creates a short term support

1420
01:04:48,180 --> 01:04:53,040
level. Okay. Now price has since been

1421
01:04:53,040 --> 01:04:55,950
trading higher. From that low we

1422
01:04:55,950 --> 01:04:59,340
discussed when price came down in our

1423
01:04:59,340 --> 01:05:01,980
previous session. example on the higher

1424
01:05:01,980 --> 01:05:03,480
timeframe were found that support level.

1425
01:05:04,080 --> 01:05:06,960
Now as price moved higher, okay, you can

1426
01:05:06,960 --> 01:05:09,330
see this stair stepping environment that

1427
01:05:09,330 --> 01:05:11,550
you see price doing. And eventually it

1428
01:05:11,550 --> 01:05:14,640
reaches a level of resistance. Now we're

1429
01:05:14,640 --> 01:05:17,640
going to show why it's a facade on your

1430
01:05:17,640 --> 01:05:20,370
part, to look at these lower timeframes

1431
01:05:20,670 --> 01:05:22,650
and expect with any reasonable

1432
01:05:22,890 --> 01:05:25,560
consistency to be able to see what's

1433
01:05:25,560 --> 01:05:27,750
going to transpire next, without having

1434
01:05:27,750 --> 01:05:29,520
any idea what the higher time frames are

1435
01:05:29,520 --> 01:05:33,810
doing. Now on a short term level, or a

1436
01:05:33,810 --> 01:05:35,700
short term basis, rather with a higher

1437
01:05:35,700 --> 01:05:37,710
time frame premise in mind until a high

1438
01:05:37,710 --> 01:05:40,740
timeframe barrier is met. And this is

1439
01:05:40,740 --> 01:05:43,050
going to be in the form of resistance.

1440
01:05:43,350 --> 01:05:45,450
Okay. And that would be seen up here

1441
01:05:45,450 --> 01:05:48,360
which we'll look at in a moment. Until

1442
01:05:48,360 --> 01:05:50,400
that is met that barrier or that

1443
01:05:50,400 --> 01:05:53,730
obstruction to higher prices. One could

1444
01:05:54,240 --> 01:05:56,610
capture trading opportunities when

1445
01:05:56,610 --> 01:06:01,350
prices finding support. Okay, so I'm

1446
01:06:01,350 --> 01:06:04,950
very well known for what I coined as the

1447
01:06:04,950 --> 01:06:07,020
optimal trade entry, which is simply

1448
01:06:07,020 --> 01:06:08,700
nothing more than a Fibonacci

1449
01:06:08,700 --> 01:06:11,880
retracement back to the 62% or 77

1450
01:06:11,880 --> 01:06:15,870
tradesmen level, or my own level 70.5,

1451
01:06:15,870 --> 01:06:18,210
which is between the 62 and 70% trace

1452
01:06:18,210 --> 01:06:19,950
level. They

1453
01:06:21,540 --> 01:06:22,590
they have a very

1454
01:06:23,700 --> 01:06:27,060
consistent level of reaction in price

1455
01:06:27,330 --> 01:06:31,980
when they are hunted. And I'm going to

1456
01:06:31,980 --> 01:06:33,990
give you some examples of how just by

1457
01:06:33,990 --> 01:06:36,900
using this price structure here, okay,

1458
01:06:37,380 --> 01:06:40,620
how many times you can see these in

1459
01:06:40,650 --> 01:06:45,240
these signals setting up. Now, again,

1460
01:06:45,270 --> 01:06:47,130
we're looking at the first week of

1461
01:06:47,130 --> 01:06:49,320
August, okay, the first week of August,

1462
01:06:49,620 --> 01:06:51,510
and again, we're assuming again, the

1463
01:06:51,510 --> 01:06:53,850
market is still bullish, so we'll be

1464
01:06:53,850 --> 01:06:56,130
looking for the low of the week. Okay,

1465
01:06:56,160 --> 01:06:57,840
now we reverse the script we learned

1466
01:06:57,840 --> 01:06:59,310
earlier about the trading day of the

1467
01:06:59,310 --> 01:07:02,850
week. For downloads we expect to see the

1468
01:07:02,850 --> 01:07:04,530
high the weak form by Tuesday's London

1469
01:07:04,530 --> 01:07:07,080
open or Monday and the very latest by

1470
01:07:07,080 --> 01:07:09,720
Wednesday's London open. But 70% of the

1471
01:07:09,720 --> 01:07:14,100
time you see the high form on Tuesday or

1472
01:07:14,130 --> 01:07:17,310
the low form on Tuesday. In this case,

1473
01:07:17,550 --> 01:07:19,560
the low the week. Okay, cuz here's the

1474
01:07:19,560 --> 01:07:22,590
nav here's here's Friday's close. Here's

1475
01:07:22,590 --> 01:07:25,800
Monday's open, the market opens on

1476
01:07:25,800 --> 01:07:28,410
Monday trades lower, this is the low of

1477
01:07:28,410 --> 01:07:29,700
the week. Okay.

1478
01:07:32,040 --> 01:07:33,240
Write this on your notepad

1479
01:07:35,220 --> 01:07:40,470
when there is a large range bar, okay?

1480
01:07:40,980 --> 01:07:45,480
Whether it be a daily or four hour or

1481
01:07:45,510 --> 01:07:50,430
one hour or 15 minute, we really doesn't

1482
01:07:50,430 --> 01:07:51,810
make a difference as to what time frame

1483
01:07:51,810 --> 01:07:54,300
is but whenever you have a large bar or

1484
01:07:54,300 --> 01:07:58,050
a large candle, large candles on any

1485
01:07:58,050 --> 01:08:02,010
timeframe do not usually work both sides

1486
01:08:02,010 --> 01:08:04,650
of the opening of that candle very much.

1487
01:08:05,070 --> 01:08:07,890
Okay. And what I mean by that? Well,

1488
01:08:07,890 --> 01:08:09,390
we're going to use this example here.

1489
01:08:09,660 --> 01:08:11,280
The market opened on Monday on this

1490
01:08:11,280 --> 01:08:13,200
particular week. It trades up a little

1491
01:08:13,200 --> 01:08:14,910
bit, but we're not talking about very

1492
01:08:14,910 --> 01:08:18,150
much here. Okay, let's look at exactly

1493
01:08:18,150 --> 01:08:21,090
what we're looking at here. It's moves

1494
01:08:21,090 --> 01:08:28,230
up 25 pips. It moves down. 42 pips.

1495
01:08:28,620 --> 01:08:32,250
Okay? So it starts off going up about 20

1496
01:08:32,280 --> 01:08:35,250
goes down about 40 and then starts to

1497
01:08:35,250 --> 01:08:37,560
move higher. But notice it doesn't work

1498
01:08:37,560 --> 01:08:39,240
both sides of the opening very much.

1499
01:08:39,449 --> 01:08:40,589
If we're bullish,

1500
01:08:40,920 --> 01:08:42,900
we can reasonably expect to see any

1501
01:08:42,900 --> 01:08:47,130
decline. Be very modest. Okay. So we

1502
01:08:47,130 --> 01:08:49,890
could be a buyer on weakness with this

1503
01:08:49,980 --> 01:08:52,380
with the understanding or level of

1504
01:08:52,770 --> 01:08:55,260
confidence that if this is a bullish

1505
01:08:55,260 --> 01:08:58,230
week, and it trades lower, okay, on

1506
01:08:58,230 --> 01:09:00,570
Monday or Tuesday, we can To be a buyer

1507
01:09:00,570 --> 01:09:03,720
if it finds support, okay? But now prior

1508
01:09:03,720 --> 01:09:06,780
to this price drop, I'm going to ask you

1509
01:09:06,780 --> 01:09:08,610
what do you see here. Now we're looking

1510
01:09:08,610 --> 01:09:11,430
at the 132 30 level here, but again,

1511
01:09:11,430 --> 01:09:12,660
because we move down to a lower

1512
01:09:12,660 --> 01:09:15,840
timeframe, what other levels stands out?

1513
01:09:17,789 --> 01:09:18,929
You see this high here,

1514
01:09:19,499 --> 01:09:20,309
the short term high.

1515
01:09:21,750 --> 01:09:22,530
Let's note that.

1516
01:09:27,599 --> 01:09:30,599
Now I will admit it's not very much in

1517
01:09:30,599 --> 01:09:32,969
terms of difference between here and

1518
01:09:32,969 --> 01:09:36,239
here. Okay, this level, let's note it so

1519
01:09:36,239 --> 01:09:44,639
you can see what it is the 132 26 and

1520
01:09:44,639 --> 01:09:46,919
this is the 132 30 level.

1521
01:09:47,130 --> 01:09:49,290
So it's not much in terms of

1522
01:09:50,550 --> 01:09:53,310
pips, but if this was an hourly chart or

1523
01:09:53,310 --> 01:09:55,200
a four hour chart, this could very

1524
01:09:55,200 --> 01:09:58,590
easily be 5060 different. You any number

1525
01:09:58,590 --> 01:10:00,990
of pips that's greater than Less than 10

1526
01:10:00,990 --> 01:10:03,210
here. So again, I'm trying to take your

1527
01:10:03,210 --> 01:10:07,020
eye and train it on a conceptual basis

1528
01:10:07,260 --> 01:10:09,660
and not limited to a specific timeframe.

1529
01:10:09,870 --> 01:10:12,450
Okay? The things that are generically

1530
01:10:12,450 --> 01:10:15,750
inherent or sensitive to timeframe is

1531
01:10:15,750 --> 01:10:17,760
the higher timeframe the daily for our

1532
01:10:17,790 --> 01:10:21,360
one hour. So the trend, the directional

1533
01:10:21,360 --> 01:10:23,070
bias the hearts high level support

1534
01:10:23,070 --> 01:10:25,290
resistance levels, those things don't

1535
01:10:25,320 --> 01:10:28,200
move. They're very, very, very powerful,

1536
01:10:28,200 --> 01:10:30,300
they're static, you have to correct

1537
01:10:30,330 --> 01:10:32,160
directly relate them to the higher time

1538
01:10:32,160 --> 01:10:35,730
frame again daily for our one hour. No

1539
01:10:35,730 --> 01:10:39,300
trade whatsoever. You should never take

1540
01:10:39,300 --> 01:10:42,600
a trade outside of having a key support

1541
01:10:42,600 --> 01:10:45,840
level or resistance level that is easier

1542
01:10:45,900 --> 01:10:47,220
either from the 60 minute,

1543
01:10:48,060 --> 01:10:48,660
minimum,

1544
01:10:49,530 --> 01:10:52,650
four hour or daily chart. Okay.

1545
01:10:53,970 --> 01:10:57,360
If you do this, your trading is going to

1546
01:10:57,360 --> 01:11:00,750
move to another level immediately. But

1547
01:11:00,750 --> 01:11:03,240
it's also going to force patience, which

1548
01:11:03,240 --> 01:11:05,610
is a very hard characteristic for

1549
01:11:05,610 --> 01:11:07,650
traders, especially as a new trader,

1550
01:11:07,650 --> 01:11:10,140
you're not going to have that level of

1551
01:11:10,470 --> 01:11:13,170
patience. Okay? But by applying the

1552
01:11:13,170 --> 01:11:14,280
higher time frames for resistance

1553
01:11:14,280 --> 01:11:16,770
levels, it's going to force you to wait.

1554
01:11:17,070 --> 01:11:18,060
And that's a good thing.

1555
01:11:18,360 --> 01:11:20,430
Okay, that's it. That's a characteristic

1556
01:11:20,430 --> 01:11:23,880
of good trading that has a learned

1557
01:11:24,090 --> 01:11:26,160
characteristic. We just don't we don't

1558
01:11:26,160 --> 01:11:27,780
open a book up say, Okay, I read that

1559
01:11:27,780 --> 01:11:30,540
chapter. Now. I'm patient. Now, you know

1560
01:11:30,540 --> 01:11:31,470
what I'm talking about. I mean, you

1561
01:11:31,470 --> 01:11:33,180
know, we you've had your demo accounts,

1562
01:11:33,180 --> 01:11:35,520
you've over leveraged it, you know, $100

1563
01:11:35,520 --> 01:11:37,080
per PIP just to see what would happen,

1564
01:11:37,350 --> 01:11:38,550
you know, what's going to happen?

1565
01:11:38,760 --> 01:11:40,650
Nothing, nothing money in your pocket,

1566
01:11:40,650 --> 01:11:42,870
you wasted time, and if it lost money,

1567
01:11:43,020 --> 01:11:44,460
you didn't pay attention to that one.

1568
01:11:45,570 --> 01:11:47,970
But the ones that do, you're sitting at

1569
01:11:47,970 --> 01:11:49,020
work daydreaming as to where you're

1570
01:11:49,020 --> 01:11:50,310
going to get out of having to ever have

1571
01:11:50,310 --> 01:11:52,080
a work anymore, okay, so you know what

1572
01:11:52,080 --> 01:11:53,670
you did? You know, you do all the time

1573
01:11:53,670 --> 01:11:55,920
to stop doing all that mess. So now

1574
01:11:55,920 --> 01:11:58,320
looking at this price action here, okay.

1575
01:11:59,190 --> 01:12:02,730
We have This short term high here, okay,

1576
01:12:03,030 --> 01:12:06,180
we have these swing lows in here. Okay?

1577
01:12:06,630 --> 01:12:10,140
So what what in this block of price,

1578
01:12:10,350 --> 01:12:15,900
what level in here is being worked? Any

1579
01:12:15,900 --> 01:12:23,190
idea? The 132 big figure, okay 132 big

1580
01:12:23,190 --> 01:12:24,420
figure. So what we'll do is

1581
01:12:25,710 --> 01:12:26,880
let's move this down.

1582
01:12:30,060 --> 01:12:33,870
Okay, and what I'll do is I'll take this

1583
01:12:33,870 --> 01:12:34,320
level

1584
01:12:39,570 --> 01:12:41,490
and I'm just gonna put that here.

1585
01:12:44,700 --> 01:12:46,920
Okay, so we have a price level that's

1586
01:12:46,920 --> 01:12:50,850
being worked here. And we have a very

1587
01:12:50,850 --> 01:12:54,510
short term high here as well. But this

1588
01:12:55,080 --> 01:12:57,690
retracement here. Okay, you see that

1589
01:12:59,340 --> 01:13:02,370
we're going to end Introduce briefly. I

1590
01:13:02,370 --> 01:13:03,660
don't want to do too much of this

1591
01:13:03,660 --> 01:13:05,160
because I can very easily turn this into

1592
01:13:05,160 --> 01:13:07,740
a full hour teaching just on fibs and

1593
01:13:07,740 --> 01:13:09,420
won't even scratch the surface on what's

1594
01:13:09,420 --> 01:13:11,640
applicable with it. If you pull a fib

1595
01:13:11,640 --> 01:13:13,230
from that level, okay, this is the

1596
01:13:13,230 --> 01:13:16,500
support level. Okay, we have price here,

1597
01:13:16,830 --> 01:13:20,220
rallying up away from it, making this

1598
01:13:20,220 --> 01:13:22,710
high here. Can you see that?

1599
01:13:24,090 --> 01:13:25,350
Do you see now

1600
01:13:27,060 --> 01:13:28,200
let me put this right on the level

1601
01:13:28,200 --> 01:13:29,490
because I want to be consistent about

1602
01:13:29,490 --> 01:13:33,780
what I'm showing you. This is the 70.5

1603
01:13:33,780 --> 01:13:36,750
level, this is the 79% level and this is

1604
01:13:36,750 --> 01:13:41,520
the 62% level. Price comes down to 62

1605
01:13:41,820 --> 01:13:44,850
and bounces and then what does it do? It

1606
01:13:44,850 --> 01:13:50,850
rallies off trades up into old lows. Old

1607
01:13:50,850 --> 01:13:55,320
high resistance into Tuesday. Okay,

1608
01:13:55,380 --> 01:13:58,470
Tuesday trades down. It makes a low. The

1609
01:13:58,470 --> 01:14:02,460
low Here comes at six 30 GMT thinking

1610
01:14:02,460 --> 01:14:03,240
time of day,

1611
01:14:03,930 --> 01:14:06,240
that's middle of Frankfurt.

1612
01:14:07,259 --> 01:14:09,029
the very early stages of London open.

1613
01:14:09,389 --> 01:14:11,639
Okay, just go back here for a second.

1614
01:14:11,669 --> 01:14:15,539
The lowness day here forms at 1345 GMT,

1615
01:14:16,529 --> 01:14:20,399
the high that day on Monday forms at 745

1616
01:14:20,429 --> 01:14:23,879
which is a London open. So now we have

1617
01:14:23,909 --> 01:14:27,419
another minor move here and retracement.

1618
01:14:28,289 --> 01:14:28,679
Okay.

1619
01:14:30,480 --> 01:14:31,740
If you pull a fit from that

1620
01:14:33,450 --> 01:14:35,520
price swing from here to here

1621
01:14:38,250 --> 01:14:41,640
and let's take this one off. So you can

1622
01:14:41,640 --> 01:14:44,430
see, price comes right down to that 62%

1623
01:14:44,430 --> 01:14:46,740
retracement level. Now we're hunting or

1624
01:14:46,740 --> 01:14:51,240
stocking buying opportunities. Okay, but

1625
01:14:51,900 --> 01:14:56,460
the 62% What else could we use? Okay,

1626
01:14:56,730 --> 01:14:59,550
well, let's see what else happens around

1627
01:14:59,550 --> 01:15:04,740
that. 62% we have the 132 47 so isn't

1628
01:15:04,740 --> 01:15:08,280
that really the 132 50 level? It's a

1629
01:15:08,280 --> 01:15:10,440
big, big round number right? So you can

1630
01:15:10,440 --> 01:15:11,940
see price comes down to that mid figure

1631
01:15:11,940 --> 01:15:13,980
level and then bounces. So there's a

1632
01:15:13,980 --> 01:15:17,940
confluence of support like that. Okay.

1633
01:15:18,600 --> 01:15:21,270
Now price rallies up, comes down,

1634
01:15:21,630 --> 01:15:25,380
bounces here, trades up finds a high and

1635
01:15:25,410 --> 01:15:28,560
retraces To do what? Well this old high

1636
01:15:28,560 --> 01:15:31,290
here once it's broken through is becomes

1637
01:15:31,290 --> 01:15:33,600
an inversion level again it's resistance

1638
01:15:33,600 --> 01:15:36,030
here once broken. Okay it's rose

1639
01:15:36,030 --> 01:15:39,030
inverted now becomes a support rallies

1640
01:15:39,030 --> 01:15:42,810
off okay and it comes back down on the

1641
01:15:42,810 --> 01:15:45,270
very next day so you don't have to rush.

1642
01:15:45,600 --> 01:15:47,760
If you miss this move Fine. Then you

1643
01:15:47,760 --> 01:15:50,130
start seeing on Wednesday price retraces

1644
01:15:50,460 --> 01:15:52,410
okay and you would do what expected to

1645
01:15:52,410 --> 01:15:55,830
find support were here. But now watch

1646
01:15:55,830 --> 01:16:00,300
what happens. You take your fib The

1647
01:16:00,300 --> 01:16:04,530
previous day's low, pulled up to the

1648
01:16:04,530 --> 01:16:08,100
high. This is the highest point from

1649
01:16:08,100 --> 01:16:11,430
this low to this high as it retraces. Do

1650
01:16:11,430 --> 01:16:13,650
you see what it's done here? Here's the

1651
01:16:13,650 --> 01:16:16,770
62% retracement is 7970 basement level

1652
01:16:17,100 --> 01:16:19,020
we have a confluence of support and

1653
01:16:19,020 --> 01:16:21,450
resistance on that 70.5 level or

1654
01:16:21,450 --> 01:16:25,230
sweetspot Okay, this is like that target

1655
01:16:25,680 --> 01:16:28,470
crosshair on a sniper scope This is

1656
01:16:28,470 --> 01:16:30,150
exactly what you're looking for. The

1657
01:16:30,150 --> 01:16:32,850
very low of this candle okay comes at

1658
01:16:32,880 --> 01:16:34,980
zactly at nine GMT

1659
01:16:35,010 --> 01:16:36,150
that is the

1660
01:16:37,980 --> 01:16:41,370
Monday and open kilson price rallies up,

1661
01:16:41,760 --> 01:16:44,370
takes off. Okay. breaks through this old

1662
01:16:44,370 --> 01:16:47,010
high. Okay see that old high here breaks

1663
01:16:47,010 --> 01:16:51,090
through that sticker that we had drawn

1664
01:16:51,090 --> 01:16:54,480
here off. Okay price rallies through it

1665
01:16:54,480 --> 01:16:57,420
and it comes back and does what finds an

1666
01:16:57,420 --> 01:16:59,730
inversion level this resistance broken

1667
01:17:00,690 --> 01:17:02,910
The role is inverted, boom, it becomes

1668
01:17:02,910 --> 01:17:07,620
what? Now support. Okay. Now, I'm going

1669
01:17:07,620 --> 01:17:09,720
to refrain from breaking down to a five

1670
01:17:09,720 --> 01:17:11,460
minute chart just to show you the

1671
01:17:13,020 --> 01:17:15,510
optimal trade entry here. But you see

1672
01:17:15,510 --> 01:17:18,930
this swing low here. This is London

1673
01:17:18,930 --> 01:17:21,840
close, this little swing low, here it is

1674
01:17:21,840 --> 01:17:24,690
occurs at London close, write this down

1675
01:17:24,690 --> 01:17:28,620
here in a pen, every session high and

1676
01:17:28,620 --> 01:17:30,690
low. In other words, the highest high

1677
01:17:30,690 --> 01:17:33,060
and the lowest low it makes during each

1678
01:17:33,060 --> 01:17:36,690
session. Okay? That means the London

1679
01:17:36,690 --> 01:17:40,230
session, the New York session, the asian

1680
01:17:40,230 --> 01:17:43,140
session, okay, only look at those three

1681
01:17:43,140 --> 01:17:46,140
major trading sessions. And you want to

1682
01:17:46,140 --> 01:17:47,760
be looking for the highest high and the

1683
01:17:47,760 --> 01:17:50,610
lowest low and it's easiest to do that

1684
01:17:50,640 --> 01:17:53,280
research on a five minute basis. Okay.

1685
01:17:53,700 --> 01:17:56,160
And you want to be getting used to

1686
01:17:56,160 --> 01:17:58,770
seeing what those ranges are for these

1687
01:17:58,770 --> 01:18:02,220
individual sessions. Now when you use

1688
01:18:02,220 --> 01:18:05,250
that information, you'll be able to pull

1689
01:18:05,250 --> 01:18:07,110
your fibs from these particular price

1690
01:18:07,110 --> 01:18:09,840
points. And you'll see the signals that

1691
01:18:09,870 --> 01:18:11,490
evade many people. And a lot of times

1692
01:18:11,490 --> 01:18:13,020
people watch my video and say, Well, it

1693
01:18:13,020 --> 01:18:14,790
looks like hindsight to me, you'll see

1694
01:18:14,790 --> 01:18:16,470
that this is the same stuff applied over

1695
01:18:16,470 --> 01:18:18,450
and over and over again. Okay? So we

1696
01:18:18,450 --> 01:18:22,560
have old, sorry, low here, which is old

1697
01:18:22,560 --> 01:18:26,190
highs here on Tuesday. So these are all

1698
01:18:26,220 --> 01:18:27,960
lower level support levels, they're now

1699
01:18:27,960 --> 01:18:30,870
dynamic. So this level is good, but you

1700
01:18:30,870 --> 01:18:33,270
can fine tune also. Okay, but more

1701
01:18:33,270 --> 01:18:35,640
importantly, as price trades back down

1702
01:18:35,640 --> 01:18:38,040
to this level here, I'm going to show

1703
01:18:38,040 --> 01:18:42,690
you this is the high and the low. And

1704
01:18:42,690 --> 01:18:44,100
here's the second is that tracing level

1705
01:18:44,340 --> 01:18:47,490
lying right on top of the support level.

1706
01:18:47,490 --> 01:18:49,770
So we have real support resistance with

1707
01:18:49,770 --> 01:18:53,160
overlapping Fibonacci retracement level

1708
01:18:53,190 --> 01:18:55,350
with a directional bias and mine looking

1709
01:18:55,350 --> 01:18:57,450
for higher prices. Okay, so you could be

1710
01:18:57,450 --> 01:19:01,080
a buyer on this candle here. This candle

1711
01:19:01,110 --> 01:19:05,160
comes in at 245 GMT. So you guys that

1712
01:19:05,160 --> 01:19:07,140
work all day, you could have been an

1713
01:19:07,140 --> 01:19:09,600
participant on this move this is a Asia

1714
01:19:09,600 --> 01:19:14,490
session, trade price moves up, blows

1715
01:19:14,490 --> 01:19:16,080
through a short term high that it

1716
01:19:16,080 --> 01:19:20,850
creates on this day here and meets a

1717
01:19:21,660 --> 01:19:25,140
otherwise unknown resistance level.

1718
01:19:25,560 --> 01:19:27,720
Okay, do you see the facade here if

1719
01:19:27,720 --> 01:19:28,950
you're just looking at these types of

1720
01:19:28,950 --> 01:19:31,530
charts in 15 minute basis, if you're

1721
01:19:31,530 --> 01:19:34,170
looking at sub 60 minutes, anything less

1722
01:19:34,170 --> 01:19:37,680
than 60 minutes without having a

1723
01:19:37,680 --> 01:19:38,880
reference point, on the higher

1724
01:19:38,880 --> 01:19:41,580
timeframe, you really are throwing darts

1725
01:19:41,730 --> 01:19:43,830
in the dark, you have no idea what

1726
01:19:43,830 --> 01:19:46,110
you're aiming for. Okay, you may think

1727
01:19:46,140 --> 01:19:47,400
you know what you're doing because price

1728
01:19:47,400 --> 01:19:48,630
is trading up and maybe you're drawing

1729
01:19:48,630 --> 01:19:51,510
trend lines and all that business. Look,

1730
01:19:51,630 --> 01:19:53,040
if you don't have the higher time frame

1731
01:19:53,040 --> 01:19:55,050
premise in mind, you are gambling.

1732
01:19:55,740 --> 01:19:56,850
There's no other way of saying it,

1733
01:19:56,850 --> 01:19:59,880
you're just simply gambling. So now

1734
01:20:00,630 --> 01:20:02,580
We're going to look at a moment at what

1735
01:20:02,580 --> 01:20:04,710
this catalyst was okay? And it's going

1736
01:20:04,710 --> 01:20:06,420
to be very clear to you won't be like,

1737
01:20:06,450 --> 01:20:08,250
Oh, this is now hindsight picking,

1738
01:20:08,310 --> 01:20:09,840
you're going to see it so clearly

1739
01:20:09,840 --> 01:20:13,380
obvious why it turned here. But

1740
01:20:13,380 --> 01:20:15,600
eventually price does break down and

1741
01:20:15,600 --> 01:20:19,050
trade down, breaking all of the higher

1742
01:20:19,050 --> 01:20:21,120
highs, higher lows, higher, high high,

1743
01:20:21,270 --> 01:20:24,630
it's all broken here. This low is broken

1744
01:20:24,630 --> 01:20:27,180
here. So now we have a break in market

1745
01:20:27,180 --> 01:20:28,260
structure. So we're going to learn more

1746
01:20:28,260 --> 01:20:31,590
about in later modules. But as price

1747
01:20:31,590 --> 01:20:34,920
breaks down, okay, this support level as

1748
01:20:34,920 --> 01:20:36,300
we see it at my little bounce here,

1749
01:20:36,660 --> 01:20:39,090
price comes down, breaks through it and

1750
01:20:39,090 --> 01:20:41,910
trades right back to it now. Okay, so

1751
01:20:41,910 --> 01:20:44,580
now if you pull a fib from this high to

1752
01:20:44,580 --> 01:20:46,770
this low, you can start seeing

1753
01:20:46,770 --> 01:20:48,060
overlapping and you can do this on your

1754
01:20:48,060 --> 01:20:50,100
own chart that's on this video is

1755
01:20:50,100 --> 01:20:51,990
getting very long. You can see there's

1756
01:20:51,990 --> 01:20:53,910
this selling opportunity. The candle

1757
01:20:53,910 --> 01:20:56,490
Here comes in at 60 empties Frankfurt

1758
01:20:56,490 --> 01:20:59,040
opening the very beginning of Frankfurt.

1759
01:21:00,000 --> 01:21:03,600
Price trades down, find support, okay?

1760
01:21:04,620 --> 01:21:07,380
If you just look over here, where price

1761
01:21:07,380 --> 01:21:09,570
starts to take off in here, this little

1762
01:21:09,690 --> 01:21:12,750
pause or consolidation, it bounces right

1763
01:21:12,750 --> 01:21:15,270
at that same point comes up and starts

1764
01:21:15,270 --> 01:21:20,850
making a larger range, okay? And creates

1765
01:21:20,880 --> 01:21:24,960
a tap to this old swing low is

1766
01:21:24,960 --> 01:21:27,240
resistance and then trades lower and

1767
01:21:27,240 --> 01:21:30,510
breaks through this swing low trade

1768
01:21:30,510 --> 01:21:33,390
softer back right back down to old lows

1769
01:21:33,510 --> 01:21:36,300
that I did not have load on the chart as

1770
01:21:36,330 --> 01:21:37,440
a horizontal line.

1771
01:21:38,370 --> 01:21:41,040
It bounces trades up to a known level of

1772
01:21:41,040 --> 01:21:44,190
resistance, okay, and comes back down

1773
01:21:44,520 --> 01:21:46,620
and starts consolidating. But it's

1774
01:21:46,620 --> 01:21:50,310
consolidating around that 132 50 level.

1775
01:21:51,240 --> 01:21:53,160
So that's just calibrate our level here

1776
01:22:00,150 --> 01:22:02,220
Okay, we're gonna leave that there. And

1777
01:22:02,220 --> 01:22:03,870
I'm going to take this one off too. So

1778
01:22:03,870 --> 01:22:05,610
it won't be confusing to us when we go

1779
01:22:05,610 --> 01:22:08,610
out to a higher timeframe chart, because

1780
01:22:08,610 --> 01:22:11,670
I want to illustrate what it is that's

1781
01:22:11,670 --> 01:22:14,910
transpiring here. And now up here, if

1782
01:22:14,910 --> 01:22:16,590
you look on the left, I'm sorry, on the

1783
01:22:16,590 --> 01:22:18,630
right hand side, this is essentially the

1784
01:22:18,630 --> 01:22:19,890
134 figure.

1785
01:22:21,180 --> 01:22:22,770
So what we're going to do is we're just

1786
01:22:22,770 --> 01:22:23,520
going to highlight

1787
01:22:24,810 --> 01:22:25,920
the 134.

1788
01:22:29,220 --> 01:22:32,160
Okay, and it was 133 98 was the high

1789
01:22:32,160 --> 01:22:34,710
that day, but we're going to see there's

1790
01:22:34,710 --> 01:22:36,690
an actual high on the higher timeframe

1791
01:22:36,690 --> 01:22:38,850
that this would have been utilized as an

1792
01:22:38,850 --> 01:22:41,040
unreasonable expectation. Expect price

1793
01:22:41,040 --> 01:22:45,540
to be either pausing at that level, or

1794
01:22:45,540 --> 01:22:47,730
maybe a little bit above it, excuse me,

1795
01:22:47,940 --> 01:22:51,180
or below as we have here. Now we're

1796
01:22:51,180 --> 01:22:52,920
gonna drop out to a four hour chart.

1797
01:22:58,410 --> 01:23:00,690
Okay, and here is that Oh, level right

1798
01:23:00,690 --> 01:23:04,110
there. Okay. Do you see these old highs?

1799
01:23:05,070 --> 01:23:08,760
It's essentially worked that 134 figure.

1800
01:23:09,150 --> 01:23:11,370
How about this old high. See that? Let

1801
01:23:11,370 --> 01:23:16,260
me take these vertical lines off. Sorry,

1802
01:23:16,320 --> 01:23:18,630
I gotta get this office drive when I

1803
01:23:18,630 --> 01:23:19,110
write to

1804
01:23:20,580 --> 01:23:21,480
see the price

1805
01:23:22,140 --> 01:23:24,390
slipped aggressively layer right there

1806
01:23:24,420 --> 01:23:27,900
and as price ran up to that old high in

1807
01:23:27,900 --> 01:23:31,170
here, it's reasonable to expect that at

1808
01:23:31,170 --> 01:23:33,450
least this would be a pause or a

1809
01:23:33,450 --> 01:23:36,480
reversal. And you see that if you go

1810
01:23:36,480 --> 01:23:37,380
back farther

1811
01:23:39,600 --> 01:23:42,210
look at these highs. See that?

1812
01:23:43,800 --> 01:23:45,210
How about we go out to a daily chart.

1813
01:23:49,680 --> 01:23:51,330
Here's those highs we just looked at.

1814
01:23:52,320 --> 01:23:52,920
Look at this high.

1815
01:23:54,840 --> 01:23:55,770
Look at the lows here

1816
01:23:57,090 --> 01:23:59,160
to the highs here. You don't think that

1817
01:23:59,160 --> 01:23:59,970
level sensitive

1818
01:24:01,230 --> 01:24:03,450
Okay, you sent me saw that here. Okay?

1819
01:24:03,930 --> 01:24:06,600
So, again, let's go back down to the 15

1820
01:24:06,600 --> 01:24:13,020
minutes for price trades down from

1821
01:24:13,020 --> 01:24:16,380
there, okay until it does what it finds

1822
01:24:16,410 --> 01:24:22,200
support. Okay? This level in here where

1823
01:24:22,200 --> 01:24:25,530
it's going to borrow horizontal line and

1824
01:24:25,530 --> 01:24:27,510
we're going to use the very extreme.

1825
01:24:27,930 --> 01:24:30,150
Okay? Now this is illustrating the,

1826
01:24:30,180 --> 01:24:31,740
again the facade of using

1827
01:24:31,740 --> 01:24:32,760
lower timeframes

1828
01:24:32,880 --> 01:24:34,830
to justify the trade without having a

1829
01:24:34,830 --> 01:24:36,540
higher time frame premise. Okay?

1830
01:24:37,560 --> 01:24:39,990
We have the 132 10 level,

1831
01:24:40,980 --> 01:24:42,300
this essentially what that is, and

1832
01:24:42,300 --> 01:24:45,510
that's a level that I've talked about in

1833
01:24:45,750 --> 01:24:48,090
weeks. Since this time of this

1834
01:24:48,090 --> 01:24:48,600
recording.

1835
01:24:49,920 --> 01:24:51,330
We got to a four hour chart.

1836
01:24:53,340 --> 01:24:58,290
Here's that 130 to 10 level. Okay, price

1837
01:24:58,290 --> 01:25:00,780
comes down, hits it right there. rallies

1838
01:25:00,780 --> 01:25:05,040
off. Look at the time it spends at

1839
01:25:05,040 --> 01:25:07,560
support resistance at that level,

1840
01:25:09,000 --> 01:25:17,160
see that? Okay.

1841
01:25:21,270 --> 01:25:22,980
When price trades down like this

1842
01:25:24,570 --> 01:25:25,530
and rallies off,

1843
01:25:27,270 --> 01:25:28,800
back down to a

1844
01:25:31,710 --> 01:25:33,000
15 minute timeframe.

1845
01:25:35,790 --> 01:25:38,730
It was in a consolidation. So I was

1846
01:25:38,730 --> 01:25:39,480
asking you

1847
01:25:41,580 --> 01:25:43,410
when we were doing our first episode

1848
01:25:43,440 --> 01:25:44,580
what you saw

1849
01:25:46,320 --> 01:25:50,190
here, okay. Now this is the market maker

1850
01:25:50,190 --> 01:25:52,890
business model. Okay, and we'll talk

1851
01:25:52,890 --> 01:25:54,990
more about this as we go along. But we

1852
01:25:54,990 --> 01:25:58,350
generally see a consolidation or rally

1853
01:25:59,340 --> 01:26:01,500
or retracement And then another leg up

1854
01:26:02,430 --> 01:26:05,220
and a pause and a leg up in an eventual

1855
01:26:05,220 --> 01:26:08,220
reversal with a failure swing, where

1856
01:26:08,220 --> 01:26:10,020
she's a high, it fails go higher and

1857
01:26:10,020 --> 01:26:12,030
then it breaks down. Then you start

1858
01:26:12,030 --> 01:26:13,830
seeing the market move lower with

1859
01:26:13,830 --> 01:26:17,820
opportunities to sell. Okay? There are

1860
01:26:18,780 --> 01:26:21,870
really two legs up and then two legs

1861
01:26:21,870 --> 01:26:26,610
down. And there is an Zenith point here.

1862
01:26:27,270 --> 01:26:30,480
There's an origin point here and a

1863
01:26:30,480 --> 01:26:32,700
conclusion point on the right side,

1864
01:26:33,030 --> 01:26:35,490
okay? They build a block of orders.

1865
01:26:36,330 --> 01:26:39,180
Okay, they rally the price up. They is

1866
01:26:39,210 --> 01:26:42,120
dealers, okay, the market makers and

1867
01:26:42,120 --> 01:26:45,900
then they have another leg up. If you

1868
01:26:45,900 --> 01:26:50,190
look at price very generically, if you

1869
01:26:50,190 --> 01:26:52,050
say okay, here's the low and it rallies

1870
01:26:52,050 --> 01:26:53,310
up and makes this price swing

1871
01:27:00,000 --> 01:27:02,250
essentially using this low here, this is

1872
01:27:02,250 --> 01:27:05,310
a second leg here. Okay? Now we're not

1873
01:27:05,310 --> 01:27:09,390
looking for x in perfect symmetry, but

1874
01:27:09,390 --> 01:27:11,280
the overall price structure will always

1875
01:27:11,280 --> 01:27:12,810
be very similar to what you see here.

1876
01:27:13,560 --> 01:27:15,000
The price move lower.

1877
01:27:18,029 --> 01:27:20,879
Okay, we have a high, down to a low.

1878
01:27:25,560 --> 01:27:28,410
Okay, you can see the second light here.

1879
01:27:29,010 --> 01:27:31,620
Okay, so we have price move and

1880
01:27:31,650 --> 01:27:33,840
consolidation and or move lower. So

1881
01:27:33,840 --> 01:27:36,330
that's the second like. So there's two

1882
01:27:36,330 --> 01:27:38,940
phases up, two phases down, but there's

1883
01:27:38,940 --> 01:27:41,880
a reactionary high that's formed here.

1884
01:27:42,300 --> 01:27:47,040
Okay. So they rally price up, and then

1885
01:27:47,040 --> 01:27:49,560
they sell off. So the accumulation they

1886
01:27:49,560 --> 01:27:52,350
accumulate Long's here, they rally price

1887
01:27:52,350 --> 01:27:54,300
up as prices rally and they distribute,

1888
01:27:54,930 --> 01:27:56,880
and then they start selling on the other

1889
01:27:56,880 --> 01:27:59,130
side. Usually what happens is folks over

1890
01:27:59,130 --> 01:28:02,100
here are expecting it to continue. And

1891
01:28:02,100 --> 01:28:03,750
they're buying over here. Because why

1892
01:28:03,750 --> 01:28:05,940
they're looking at loads of here drawing

1893
01:28:05,940 --> 01:28:07,740
trend lines, and then thinking, Okay,

1894
01:28:07,740 --> 01:28:08,910
it's right at the trendline and start

1895
01:28:08,910 --> 01:28:12,540
buying in breaks. And they don't know

1896
01:28:12,540 --> 01:28:15,720
what they're doing so much in the same

1897
01:28:15,720 --> 01:28:17,850
way it does it on the upside. Same thing

1898
01:28:17,850 --> 01:28:19,890
will happen here, folks start seeing

1899
01:28:19,890 --> 01:28:22,020
these stair steps going lower, lower,

1900
01:28:22,020 --> 01:28:24,060
lower, they'll draw their trend line.

1901
01:28:25,290 --> 01:28:27,120
Again, this is why I'm not a fan of

1902
01:28:27,120 --> 01:28:30,030
trend lines. But you can see how this is

1903
01:28:30,030 --> 01:28:33,150
a very textbook trend line. So when

1904
01:28:33,150 --> 01:28:35,820
price gets here, okay, let's be a

1905
01:28:35,820 --> 01:28:41,610
seller. Really? Why? Because the 15

1906
01:28:41,610 --> 01:28:43,680
minute chart says so it's a it's a trend

1907
01:28:43,680 --> 01:28:43,920
line.

1908
01:28:45,360 --> 01:28:46,530
Watch what happens.

1909
01:28:48,900 --> 01:28:50,310
Wow, we've made money.

1910
01:28:51,930 --> 01:28:53,490
Boom, we got crushed.

1911
01:28:55,110 --> 01:28:57,480
Watch what's happened. Okay, we move

1912
01:28:57,480 --> 01:29:00,780
into another market maker. business

1913
01:29:00,780 --> 01:29:02,730
model we go on until consolidation, a

1914
01:29:02,730 --> 01:29:06,000
fake rally. They take the stops out on

1915
01:29:06,000 --> 01:29:07,200
those that are right on the market so

1916
01:29:07,200 --> 01:29:08,280
they could have been buyers down in

1917
01:29:08,280 --> 01:29:10,980
here. Okay, there's gonna be retail

1918
01:29:10,980 --> 01:29:12,600
traders that are being buyers down here

1919
01:29:12,600 --> 01:29:15,240
and they would have been right. Bang,

1920
01:29:15,240 --> 01:29:17,130
you take them out, it activates their

1921
01:29:17,130 --> 01:29:19,410
cell stop, their cell stop becomes a

1922
01:29:19,410 --> 01:29:21,510
sell order at the market, who's going to

1923
01:29:21,510 --> 01:29:22,140
buy it from

1924
01:29:23,220 --> 01:29:23,910
smart money.

1925
01:29:24,840 --> 01:29:26,880
And you see this extrapolated, huge

1926
01:29:26,880 --> 01:29:30,810
move, rally up. Okay. Now think like a

1927
01:29:30,810 --> 01:29:32,490
way over here we have a consolidation

1928
01:29:32,520 --> 01:29:35,160
early, and then a consolidation rally.

1929
01:29:35,220 --> 01:29:39,330
It's always a rally in a reversal of

1930
01:29:39,330 --> 01:29:41,610
sorts and then a breakdown. Okay, let's

1931
01:29:41,610 --> 01:29:44,400
look at what we're looking at here. We

1932
01:29:44,400 --> 01:29:47,100
have a consolidation, a rally, a

1933
01:29:47,100 --> 01:29:49,350
consolidation around Ollie.

1934
01:29:51,630 --> 01:29:52,500
A failure swing.

1935
01:29:53,100 --> 01:29:54,780
The market breaks down and creates a

1936
01:29:54,780 --> 01:30:01,590
false rally and move lower. Lower rally

1937
01:30:02,790 --> 01:30:07,890
move up into old resistance. Okay? And

1938
01:30:07,890 --> 01:30:12,420
this is where we're at right now. So you

1939
01:30:12,420 --> 01:30:13,980
can see there's a general repeating

1940
01:30:13,980 --> 01:30:16,410
theme here, okay? They're not always

1941
01:30:16,410 --> 01:30:18,000
going to be identical, but they're going

1942
01:30:18,000 --> 01:30:20,130
to be very close in terms of their

1943
01:30:21,630 --> 01:30:23,910
structure. Okay? And this is what I

1944
01:30:23,910 --> 01:30:25,920
refer to as market structure, you need

1945
01:30:25,920 --> 01:30:29,220
to see what price is trying to do. Okay?

1946
01:30:29,250 --> 01:30:31,500
And key office support resistance, use

1947
01:30:31,500 --> 01:30:35,130
time of day, use day of the week. Okay,

1948
01:30:35,190 --> 01:30:37,530
and let's add that real quick here. You

1949
01:30:37,530 --> 01:30:40,530
can see that the lowest formed on the

1950
01:30:40,530 --> 01:30:42,990
initial leg up, but you're now in a

1951
01:30:42,990 --> 01:30:46,080
second stage. Okay? This is where we

1952
01:30:46,110 --> 01:30:49,770
apply. It's more of a list an advanced

1953
01:30:50,040 --> 01:30:51,960
approach to utilizing but you're also

1954
01:30:51,960 --> 01:30:54,030
implying time on the study of time is

1955
01:30:54,030 --> 01:30:58,650
important. Okay, so you have this price

1956
01:30:58,650 --> 01:31:00,750
rally here from the previous week. Then

1957
01:31:00,750 --> 01:31:03,390
consolidation and then it rallies up. So

1958
01:31:03,390 --> 01:31:05,250
this is when you get these weeks that

1959
01:31:05,700 --> 01:31:07,980
Yeah, you do have a low form on a Monday

1960
01:31:07,980 --> 01:31:10,620
or Tuesday rallies off, it makes a very

1961
01:31:10,620 --> 01:31:13,350
good potentially profitable trade. But

1962
01:31:13,350 --> 01:31:15,570
then you have the reversal, failure

1963
01:31:15,570 --> 01:31:17,520
swing and it trades lower and takes out

1964
01:31:17,520 --> 01:31:20,520
the weekly low. Why did it do that? Take

1965
01:31:20,520 --> 01:31:22,620
the vertical lines off and take the

1966
01:31:22,620 --> 01:31:24,450
barriers or blinders that you have on

1967
01:31:24,450 --> 01:31:26,010
thinking okay ICT said

1968
01:31:26,280 --> 01:31:27,600
the week is bullish,

1969
01:31:27,930 --> 01:31:29,430
that means it's going to be the low of

1970
01:31:29,430 --> 01:31:30,750
the week on Monday or Tuesday or

1971
01:31:30,750 --> 01:31:32,550
certainly latest by Wednesday's London

1972
01:31:32,550 --> 01:31:35,070
open so therefore, buy and hold.

1973
01:31:35,850 --> 01:31:37,170
Well, there's a little bit more

1974
01:31:37,170 --> 01:31:39,330
to it than that and that gets back to

1975
01:31:39,330 --> 01:31:40,920
where we at in terms of the overall

1976
01:31:40,920 --> 01:31:44,580
market structure. Okay. So now on the

1977
01:31:44,640 --> 01:31:48,540
other side of the business model, so now

1978
01:31:48,570 --> 01:31:50,910
Are we going to continue to move lower,

1979
01:31:51,960 --> 01:31:54,000
very well could. Why because we went up

1980
01:31:54,000 --> 01:31:58,950
to at 134 and failed. Okay. There's a

1981
01:31:58,950 --> 01:32:00,300
little bit of a lot of fun. A lot of

1982
01:32:00,300 --> 01:32:02,160
other things that we could build on. And

1983
01:32:02,160 --> 01:32:02,940
again, I'm not trying to give you a

1984
01:32:02,940 --> 01:32:05,610
trade. But there's certainly a lot to

1985
01:32:05,640 --> 01:32:06,570
suggest that

1986
01:32:06,630 --> 01:32:09,000
this could potentially become a nice

1987
01:32:09,000 --> 01:32:10,470
starting point. If you look at the high

1988
01:32:10,470 --> 01:32:12,660
here down to this low, it's a very

1989
01:32:12,660 --> 01:32:15,420
significant retracement point. And we'll

1990
01:32:15,420 --> 01:32:18,420
just leave that for another time. But if

1991
01:32:18,420 --> 01:32:21,390
price continues to move on higher, then

1992
01:32:21,390 --> 01:32:25,170
we can assume that this is a very solid

1993
01:32:25,290 --> 01:32:28,260
swing low is formed. And we could see,

1994
01:32:28,380 --> 01:32:30,420
you know, this, this high challenge but

1995
01:32:30,570 --> 01:32:32,760
we don't know for certain ways look for

1996
01:32:32,760 --> 01:32:35,670
confluences of support resistance with a

1997
01:32:35,670 --> 01:32:37,350
bias in mind and then

1998
01:32:37,950 --> 01:32:38,760
trade on that.

1999
01:32:39,150 --> 01:32:42,570
And overall, consistently. Applying that

2000
01:32:42,570 --> 01:32:45,120
mindset, you'll see that there's a means

2001
01:32:45,120 --> 01:32:47,970
of finding consistency in your trading.