ICT - Sniper Course - 03 - Field Navigation module.srt
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ICT: Okay guys, welcome to Episode Four
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in this series CT scout sniper field
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training guide. Okay, let's look at what
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we're going to be covering in this
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presentation. We're gonna be reviewing
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the previous episodes assignment price
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reactions. And we're going to be looking
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at examples of pricing price reactions.
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We're going to go over a brief overview
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of smart money concepts. And we're gonna
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be looking at interest rates,
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timeframes, range trend, and power
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three. Okay, we're gonna be revealing
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the market maker. Okay, we're gonna be
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looking at the ICT market maker by
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model. And we're gonna be looking at how
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dealers operate in support levels. And
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we're gonna be looking at the ICT market
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maker sell model and how dealers operate
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in resistance levels. We're gonna be
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looking at how market makers business
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model works in application. We're gonna
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be looking at understanding how market
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maker pairs orders and how orders stack
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around key levels. Okay, we're looking
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at exposing the mechanics of a price
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swing. And we're going to look at more
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of the time and especially working
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around the ICT kill zones. And we're
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gonna be looking at the London kill
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zone, specifically and the New York kill
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zone. We're gonna be looking at how
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prices are crucial to you. And as far as
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knowing your key levels and how you're
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setting up your
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opportunities to trade.
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And we're gonna be giving you a homework
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assignment, stalking in the kill zone.
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Okay, folks, we're looking at the Euro
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USD, daily chart. And when we're looking
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at reaction levels, okay, the ones I'm
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most interested in are obviously found
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in the higher time frames now. You can
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can go back to a monthly you can go back
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to a weekly chart and look for these
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types of levels as well. But for the
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sake of this teaching series, we're just
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going to focus on the intermediate term
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market. And that's going to be defined
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that the daily and for our and by
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hunting the reaction levels on this
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higher timeframe daily chart and or the
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four hour chart, it really puts the odds
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in your favor based on the fact that the
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institutional level traders that beats
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the banks, the large funds and such they
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are really watching these key levels
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now. We discuss in the first two
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episodes how we can look at support
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resistance and have you know, high odds
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key resistance levels. Now we're going
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to build on that in this episode here.
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But for now, while we're looking at
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this, I want to remind you to the last
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episode we talked about the fiber being
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poised to trade lower. Okay, now I
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purposely waited a little while, not as
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long as I did, but the third episode
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out, but I wanted to wait a little while
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to allow the market to move lower based
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on that real time, if you want to call
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it that, in recording, it's time and
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date stamped on YouTube, the, the fiber
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was called to go lower. Now we're going
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to frame why that was the case now,
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okay, but I want to reiterate the fact
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that it was called lower beforehand,
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okay. So the concepts that we're going
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to employ and go over in this example,
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are going to be beneficial to you going
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forward because it's the same type of
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thing you do over and over and over
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again, just, you know, on your own
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particular pair, or it could be a stock
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market, you know, stock or commodity,
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whatever it is, whatever vehicle or
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asset class that you find yourself a
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trader in. We're delving in specifically
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the FX market here in this series, but
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it's important to understand my concepts
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are generic, okay, and when I say
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generic, it means do not boring in the
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sense that they're not useful. They're
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generic in the sense that they're
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universal. Okay, they apply to every
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asset class minor little nuances that
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have to be taken into consideration. But
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nonetheless, they are applicable to
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every market asset class. So the
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homework assignment was to look for
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reaction levels, okay, mark them up on
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your chart, and then watch what happens
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in the coming weeks around those
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particular price levels. Okay, and we're
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going to do that now. Now, I'm not going
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to beat it to death in terms of what
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reaction levels and what support
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resistance levels we should have noted
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in our chart. But if we were looking at
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this example here, and this was real
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time in the time, if you sitting down in
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front of the charts or when I would be
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sitting in front of the charts, this is
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how I would mark up my charts. Okay, I'm
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just going to use the four horizontal
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lines to save time because I spend a lot
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of time month around with adjusting the
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the app, the right end of a trend line.
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Now I do like the trend lines because it
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makes it neater when I'm drawing
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horizontal support resistance. Now I
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don't like trend lines on a diagonal
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basis. So don't get me misquoted here I
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do not have faith in diagonal support
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resistance, but I do have absolute faith
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and horizontal support resistance as we
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have here. Now what I'm doing is some
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noting every
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swing high and swing low, that's
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relatively close, I'm going to use about
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300 to 400 PIP range from where we're
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trading at in this instance here. Now
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obviously, you can see time of this
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recording prices already down here. But
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again, I'm going to counsel you to go
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back to the recording and you'll know by
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watching it that we call this market
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going lower here. Okay.
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So
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we have this reaction hi he Okay, swing
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high. Now what I'm noting again so you
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don't
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lose.
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Lose Yourself amongst my banter here.
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I'm looking at times where candles have
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to hire candles on both sides. Okay? Not
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to hire on each side but to hire candles
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on one side and other words you have a
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candle with a higher low on the left and
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a higher low on the right. Okay, and I'm
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pointing this probably is probably
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confusing because it's not what I'm
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showing you here but this is a Sunday
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candle so you got to take that in
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consideration blend that into this
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Monday. So you do have the, the swing
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low here, basing this Monday candle and
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this Thursday candle here and this is a
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Friday candle. So you have that swing
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low. Okay, so we'll have that noted.
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Okay, and
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we're going to use Who's this high here?
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Okay, and
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you see this one here? Now I realize
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you're probably starting to think well
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wait, this is getting really busy here.
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Okay, but what I want to draw your
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attention to is the fact that we do have
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these levels, turning the market on a
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daily timeframe. Okay, so if the market
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made its daily higher low there, okay?
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It's significant. Okay. Now this is a
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moment report your pad. Major reaction
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levels, okay occur around annual highs
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and lows I mean yearly, high and low.
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Quarterly, your high and low in other
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words every three months, okay, for
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instance, January, February, March in
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that block of time calendar basis, okay,
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find the highest high in high school I'm
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sorry, highest high and lowest low in
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that timeframe. Do the same thing for
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the second quarter. Okay, that beam
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April, May, June, and then July, August,
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September, October, November December.
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So there's there's four quarters and
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blocks of three okay because there's a
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quarterly shuffle that goes on okay
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portfolio dressing and such. And you'll
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be able to see significant highs and
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lows. We're not gonna do that here. It's
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this series is meant for you to get your
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sleeves rolled up and do some homework
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on your own. Okay, and you're going to
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learn by doing it, okay, I'm leading you
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to the water but it's up to you to
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drink, okay. You also have monthly highs
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and lows. Those are key, important
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reactionary levels. Okay. And then you
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have weekly highs and lows and you have
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intra week highs and lows. Okay, so now
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it's once you get to like Wednesday,
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whatever the highest highs and lows low
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was at that time are influential. Okay,
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and then you have your standard daily
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highs and lows. Okay. And here is one of
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the gold nuggets that you're going to
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get okay. Whenever you see a swing high,
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okay, swing high like this. Okay, we
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have a candle here with a lower high
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candle, right, have it in a lower high
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candle on the left of it. Okay? This
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pattern is very, very strong. And the
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reason why it's so strong is because you
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have to take a couple elements out of
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that pattern. Okay, and we're going to
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start with the first candle here, this
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candle on the left of the swing high.
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Okay, you want to note the high, the
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open the low and the close on this
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candle. You want to do the same thing
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for the highest candle in the three bar
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pattern. And you want to do the same
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thing to open high low close values on
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that same basis. Okay. And whenever you
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see a swing high on your daily
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timeframe, you really, really want to
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have those data points. Now,
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essentially, we have the high here with
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this horizontal line, and we essentially
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have the open. We're here with this
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line. Because based on this candle here,
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now we have to have the low. I'm sorry,
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the low here, noted as well. Okay, you
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can see that happening right there. Now
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I'm balling it true, but we can go down
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and Doctor it up when we get down to the
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lower timeframes. But here's what I
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want, just just by clicking that, like I
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did here. I want you to take a look at
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what happened over here and these
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candles, see the bodies they were having
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difficulty closing and opening far
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beyond that level. Okay, something about
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these levels, okay, causes the
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marketplace to turn. Okay, we're going
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to talk more specifically about that
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phenomenon. Okay, and another Smart
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Money concept applied to where markets
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tend to, to blast off and have you trade
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opportunity presented to you and you can
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see things in advance based on what I'm
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going to share in this episode here. But
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I want to show you how sensitive these
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levels are and then obviously, because
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we have this market open on this candle
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here, if you go over here look with
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debt, you have a bounce right off of
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that. Obviously, we can see that the
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close of that candle and that swing
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high, we were opening essentially near
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that same point went lower. The candle
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here was unable to make much move
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higher. We fell short of it here, the
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body of the candle here as well. Okay,
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so there's a lot of insight that is
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gleaned by doing these exercises, but
268
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it's also a daily procedure. Okay, but
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here's the cool thing. Once you have
270
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these levels noted, okay, these when
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they're when they're a lot of them like
272
00:12:44,850 --> 00:12:47,520
you see here. This is when you take your
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00:12:47,550 --> 00:12:49,650
data, and you write it down in your pad,
274
00:12:49,950 --> 00:12:51,930
okay, and that way when price trades to
275
00:12:51,930 --> 00:12:54,690
these levels, okay, or approaches these
276
00:12:54,690 --> 00:12:56,640
levels, you'll have that in mind. Okay,
277
00:12:56,640 --> 00:12:58,320
look uses a reactionary level based on a
278
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daily timeframe. So you don't have to
279
00:13:00,000 --> 00:13:02,040
have all these lines on your chart?
280
00:13:02,220 --> 00:13:04,500
Okay? So we're going to do is we're
281
00:13:04,500 --> 00:13:06,510
going to take our chart and we're going
282
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to drill down to a four hour basis.
283
00:13:09,180 --> 00:13:11,190
Okay? And we're going to be just simply
284
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looking at
285
00:13:13,710 --> 00:13:14,460
the,
286
00:13:15,630 --> 00:13:16,380
the market
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from the standpoint of August 23.
288
00:13:32,820 --> 00:13:34,380
Okay, and what I did was I've just moved
289
00:13:34,410 --> 00:13:37,380
the fixed chart position and just a
290
00:13:37,380 --> 00:13:39,690
little difficult to see here, but I will
291
00:13:39,690 --> 00:13:41,700
show you all that when I talk about
292
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setting up templates for mt four and how
293
00:13:44,250 --> 00:13:47,490
you can maneuver around. So we're gonna
294
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do a four hour chart. Okay, and here we
295
00:13:52,770 --> 00:13:55,380
are, we're essentially with the same
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00:13:55,380 --> 00:13:57,540
levels noted. We move down into a four
297
00:13:57,540 --> 00:14:00,810
hour basis. Okay, and I'm just going to
298
00:14:00,810 --> 00:14:02,700
design the scrub forward a little bit.
299
00:14:04,500 --> 00:14:07,080
Okay, and read about here's where we're
300
00:14:07,080 --> 00:14:08,700
talking about how the market was poised
301
00:14:08,700 --> 00:14:12,120
to trade lower. And I'll promise I'll
302
00:14:12,120 --> 00:14:14,310
get to the point of which we're going to
303
00:14:14,310 --> 00:14:16,200
explain why it was going to go lower.
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But for now, I just want to just
305
00:14:17,970 --> 00:14:21,060
illustrate how the market eventually
306
00:14:21,060 --> 00:14:24,000
traded with these levels. Okay, now,
307
00:14:24,000 --> 00:14:27,840
these levels were based on key reaction
308
00:14:27,840 --> 00:14:30,330
levels on a daily timeframe before the
309
00:14:30,330 --> 00:14:31,620
fact otherwise, we're going to basically
310
00:14:31,620 --> 00:14:35,580
establish a point of which will
311
00:14:35,580 --> 00:14:37,500
delineate with a vertical line here.
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00:14:37,860 --> 00:14:41,190
We'll say, beginning here, you know, we
313
00:14:41,190 --> 00:14:43,170
were expecting to go lower, and we're
314
00:14:43,170 --> 00:14:44,910
going to start watching and there's
315
00:14:44,910 --> 00:14:47,370
going to study how price reacted to
316
00:14:47,370 --> 00:14:52,380
these levels going forward. Okay. And
317
00:14:52,380 --> 00:14:53,460
really, what you're doing is you're,
318
00:14:53,610 --> 00:14:56,340
you're looking at how price moved,
319
00:14:56,370 --> 00:14:58,800
reacted, traded down to and up to
320
00:14:58,800 --> 00:15:01,410
resistance and support How price works
321
00:15:01,410 --> 00:15:04,080
to specific levels, broke down, found
322
00:15:04,080 --> 00:15:06,630
support at it and then broke lower and
323
00:15:06,660 --> 00:15:08,730
moved around in gyrated. Okay. Now,
324
00:15:09,360 --> 00:15:11,640
these levels are just simply established
325
00:15:11,640 --> 00:15:14,490
off of daily timeframe. Now, when you
326
00:15:14,490 --> 00:15:16,350
move to a four hour, okay, like we
327
00:15:16,350 --> 00:15:18,180
learned in the previous two episodes,
328
00:15:18,570 --> 00:15:19,980
when you break your market down from a
329
00:15:19,980 --> 00:15:21,660
daily to a four hour the four hour is
330
00:15:21,660 --> 00:15:23,670
going to have more dynamic support
331
00:15:23,670 --> 00:15:25,620
resistance levels that were not as
332
00:15:25,620 --> 00:15:28,500
clearly discernible as we're on a daily
333
00:15:28,500 --> 00:15:33,600
chart, okay, so this level here, okay,
334
00:15:33,930 --> 00:15:35,550
you would have on your chart as well and
335
00:15:35,550 --> 00:15:37,890
you can see the price reactions from
336
00:15:37,890 --> 00:15:41,130
there's as well and you have this swing
337
00:15:41,130 --> 00:15:44,580
low. One could have that on your chart
338
00:15:44,580 --> 00:15:47,520
as well. And you can see how price
339
00:15:47,790 --> 00:15:50,550
reacted around that as well. Okay, and
340
00:15:50,760 --> 00:15:53,460
now, what we're gonna do is we're going
341
00:15:53,460 --> 00:15:57,330
to move to a 15 minute basis and we're
342
00:15:57,330 --> 00:15:59,790
going to look at last week's trading
343
00:16:21,030 --> 00:16:23,730
Okay, this is last week trading the Euro
344
00:16:23,730 --> 00:16:25,740
USD, this is a 15 minute timeframe that
345
00:16:25,740 --> 00:16:26,610
we're going to do is going to put the
346
00:16:26,610 --> 00:16:29,160
vertical lines in delineating the actual
347
00:16:29,160 --> 00:16:31,920
days. You have Monday's trading here,
348
00:16:32,580 --> 00:16:35,250
Tuesday trading here, Wednesday,
349
00:16:35,460 --> 00:16:39,180
Thursday, and then Friday down here. Now
350
00:16:39,210 --> 00:16:40,860
we again, we're calling the market
351
00:16:40,860 --> 00:16:43,200
lower. And you can see the market did in
352
00:16:43,200 --> 00:16:45,570
fact trade lower. We're going to be
353
00:16:45,570 --> 00:16:46,740
looking at
354
00:16:49,140 --> 00:16:50,130
how price
355
00:16:50,640 --> 00:16:53,730
reacted intra week, okay, but we're
356
00:16:53,730 --> 00:16:57,330
going to talk about some things that
357
00:16:57,360 --> 00:16:59,010
haven't really been touched on if you've
358
00:16:59,010 --> 00:17:00,870
been following for a while. in great
359
00:17:00,870 --> 00:17:15,570
detail Okay, so now what we're gonna do
360
00:17:15,570 --> 00:17:20,430
is we're gonna be discussing the have a
361
00:17:20,430 --> 00:17:22,200
market itself, we're going to zoom out
362
00:17:22,200 --> 00:17:23,970
just one more tap to so you can get a
363
00:17:23,970 --> 00:17:26,280
feel for what has happened. The market
364
00:17:26,280 --> 00:17:28,500
traded lower up in these levels here
365
00:17:28,500 --> 00:17:30,930
where we were calling it lower and broke
366
00:17:30,930 --> 00:17:33,000
down rather aggressively. Okay, so you
367
00:17:33,000 --> 00:17:36,720
can see much more dynamic view of how
368
00:17:36,840 --> 00:17:39,480
price had respected the support
369
00:17:39,480 --> 00:17:42,630
resistance lines that we arrived at on a
370
00:17:42,630 --> 00:17:47,670
daily timeframe. Okay, so now obviously,
371
00:17:47,670 --> 00:17:49,530
we can see in hindsight, it caused the
372
00:17:49,530 --> 00:17:52,440
market to turn at resistance and support
373
00:17:52,440 --> 00:17:54,390
and once support was broken, events
374
00:17:54,390 --> 00:17:55,620
retreated back to it found as
375
00:17:55,620 --> 00:17:57,630
resistance. Okay, we understand those
376
00:17:57,630 --> 00:17:59,190
central tenants to the marketplace and
377
00:17:59,190 --> 00:18:00,900
how technology analysis is generally
378
00:18:01,170 --> 00:18:04,590
perceived and or viewed in hindsight
379
00:18:04,590 --> 00:18:06,780
basis. Okay, but how do we use these
380
00:18:06,780 --> 00:18:09,150
levels going forward? Okay, well, number
381
00:18:09,150 --> 00:18:09,510
one,
382
00:18:10,140 --> 00:18:12,420
unless you have these
383
00:18:12,990 --> 00:18:16,080
types of price points, okay, or support
384
00:18:16,080 --> 00:18:17,910
resistance levels on a higher timeframe,
385
00:18:18,270 --> 00:18:20,700
there's absolutely zero reason to expect
386
00:18:20,730 --> 00:18:24,000
a trade to form. Okay? Again, here's one
387
00:18:24,000 --> 00:18:25,620
of those night notepad moments, okay?
388
00:18:26,130 --> 00:18:27,780
Write this down and I'm going to line it
389
00:18:27,990 --> 00:18:32,970
several times, you do not look for a
390
00:18:32,970 --> 00:18:35,670
trade or trading pattern when your
391
00:18:35,670 --> 00:18:38,370
intraday charts unless it is trading at
392
00:18:38,370 --> 00:18:40,560
a higher time frame support resistance
393
00:18:40,560 --> 00:18:42,720
level, okay, or at a higher timeframe
394
00:18:42,750 --> 00:18:46,320
reaction level. That means the trade has
395
00:18:46,320 --> 00:18:49,500
to be formulated and framed around a
396
00:18:49,500 --> 00:18:51,810
level that you had already arrived at,
397
00:18:52,140 --> 00:18:54,210
from the daily and or for a timeframe.
398
00:18:54,900 --> 00:18:57,390
Okay, now, here's a question for you.
399
00:18:57,780 --> 00:18:59,040
And you already know the answer to this,
400
00:18:59,040 --> 00:19:02,220
I'm sure So again, I'm not trying to
401
00:19:02,220 --> 00:19:03,720
browbeat anyone, but I'm telling you,
402
00:19:03,720 --> 00:19:06,090
I've done the same stuff. So hopefully
403
00:19:06,090 --> 00:19:07,860
you'll learn from it like I did. And
404
00:19:07,860 --> 00:19:09,570
you'll, you'll, you'll stop the bleeding
405
00:19:09,600 --> 00:19:10,500
and you'll start moving towards
406
00:19:10,500 --> 00:19:14,160
consistency. So now looking at your own
407
00:19:14,160 --> 00:19:18,540
personal trading, how many times daily,
408
00:19:18,630 --> 00:19:20,910
weekly, in the last few months or so,
409
00:19:21,150 --> 00:19:23,700
how many times have you looked at a five
410
00:19:23,700 --> 00:19:24,930
minute chart or a one minute chart,
411
00:19:24,960 --> 00:19:26,610
maybe, you know, an hourly chart,
412
00:19:27,090 --> 00:19:29,310
looking for a pattern, a price pattern,
413
00:19:29,700 --> 00:19:32,700
and then trying to chase the market
414
00:19:32,700 --> 00:19:34,800
after you see it moving? Because you you
415
00:19:34,800 --> 00:19:37,950
didn't have the confidence, the trust
416
00:19:38,340 --> 00:19:39,960
the pattern, because there was nothing
417
00:19:39,990 --> 00:19:42,000
framing it on. Okay, you just saw a
418
00:19:42,390 --> 00:19:45,510
pattern or similarity of what would be
419
00:19:45,510 --> 00:19:47,970
considered a price pattern and then
420
00:19:47,970 --> 00:19:49,470
reacted to it after the market started
421
00:19:49,470 --> 00:19:51,870
moving. What you felt was a confidence
422
00:19:51,870 --> 00:19:54,030
booster in the favor that you know the
423
00:19:54,030 --> 00:19:55,560
favorable direction the pattern was
424
00:19:55,560 --> 00:19:57,270
suggesting it would move, and then all
425
00:19:57,270 --> 00:19:59,070
of a sudden solve that market turn on
426
00:19:59,070 --> 00:20:01,500
you. Even though That suppose that price
427
00:20:01,500 --> 00:20:03,450
pattern was there. It eventually turned
428
00:20:03,450 --> 00:20:06,540
on you, as it happened to you. I can
429
00:20:06,540 --> 00:20:08,490
tell you with grace is surely if it
430
00:20:08,490 --> 00:20:10,110
hasn't, if you don't do these types of
431
00:20:10,110 --> 00:20:12,900
things, it surely will price patterns by
432
00:20:12,900 --> 00:20:15,870
themselves. You know, you all speak
433
00:20:15,870 --> 00:20:19,050
harmonically. gartley, butterflies,
434
00:20:19,050 --> 00:20:22,230
bats, all those patterns, okay, that you
435
00:20:22,260 --> 00:20:25,350
hear bandied about on the internet and
436
00:20:25,350 --> 00:20:28,740
or YouTube educational series or reviews
437
00:20:28,740 --> 00:20:32,130
or some quote unquote previews. They may
438
00:20:32,130 --> 00:20:35,610
or may not be profitable. But if you
439
00:20:35,610 --> 00:20:39,000
don't have that pattern framed around a
440
00:20:39,030 --> 00:20:41,580
real reaction level, okay, and again,
441
00:20:41,580 --> 00:20:44,430
we've talked about why the market reacts
442
00:20:44,430 --> 00:20:46,590
like it does and when you see market
443
00:20:48,210 --> 00:20:50,670
moves that are dynamic, okay, because
444
00:20:51,120 --> 00:20:53,460
it's the institutional sponsorship that
445
00:20:53,460 --> 00:20:55,860
takes the market up or down. Okay,
446
00:20:55,890 --> 00:20:57,750
retail traders are not going to do
447
00:20:57,750 --> 00:21:00,570
anything to this marketplace. We are
448
00:21:00,570 --> 00:21:02,970
participants that are hopefully like the
449
00:21:02,970 --> 00:21:05,370
fleas on the dog. Okay, we're on for the
450
00:21:05,370 --> 00:21:06,720
ride once in a while we get a bite.
451
00:21:06,930 --> 00:21:09,150
Okay? But if we don't watch it a dog
452
00:21:09,150 --> 00:21:12,360
will scratches right off. So we are
453
00:21:12,360 --> 00:21:14,640
hopefully positioning ourselves at a
454
00:21:14,640 --> 00:21:18,810
time and place really in terms of price,
455
00:21:19,410 --> 00:21:24,210
where the market is highly sensitive to
456
00:21:24,660 --> 00:21:27,810
market reactions on the higher level
457
00:21:27,840 --> 00:21:30,300
trading entities like the banks, large
458
00:21:30,300 --> 00:21:32,940
funds, institutions, if those traders
459
00:21:32,970 --> 00:21:35,370
are participating in the marketplace at
460
00:21:35,370 --> 00:21:37,560
that time frame, okay, at that time of
461
00:21:37,560 --> 00:21:40,110
day at that date, okay, at that price
462
00:21:40,110 --> 00:21:43,560
level, you are in a much better
463
00:21:43,800 --> 00:21:45,930
position, technically speaking as a
464
00:21:45,930 --> 00:21:48,030
trader than those that to simply go out
465
00:21:48,030 --> 00:21:50,310
and say, Well, you know, the markets are
466
00:21:50,310 --> 00:21:51,570
going up for the last six days, so it's
467
00:21:51,570 --> 00:21:52,620
probably gonna keep going up. Let me
468
00:21:52,620 --> 00:21:54,780
just go in here and buy it today. Okay,
469
00:21:54,930 --> 00:21:56,190
so I can tell you I know a lot of people
470
00:21:56,190 --> 00:21:58,170
that send me emails, again, please, I'm
471
00:21:58,170 --> 00:21:59,760
only using this as an example. So don't
472
00:22:00,000 --> 00:22:01,560
Let this be an impediment to you ever
473
00:22:01,560 --> 00:22:03,330
send me emails or questions or comments
474
00:22:03,330 --> 00:22:05,220
or anything like that. But you know,
475
00:22:05,550 --> 00:22:07,800
folks, do these types of things. And
476
00:22:07,800 --> 00:22:09,660
here's this. Here's another, you know,
477
00:22:10,860 --> 00:22:13,350
disclosure, I did that same stuff, guys.
478
00:22:13,440 --> 00:22:15,450
Okay, when I traded commodities if the
479
00:22:15,450 --> 00:22:17,700
market was going screaming up, okay, I
480
00:22:17,700 --> 00:22:20,640
would be watching it do it in the middle
481
00:22:20,640 --> 00:22:22,470
of the summertime during drought season.
482
00:22:22,740 --> 00:22:24,120
If the week mark was going straight up,
483
00:22:24,150 --> 00:22:27,270
it could be up for 19 days. And I'm
484
00:22:27,270 --> 00:22:28,380
like, wow, that's been going on. Let me
485
00:22:28,380 --> 00:22:30,300
just get in here and buy that okay. And
486
00:22:30,510 --> 00:22:32,340
sometimes I was lucky. And then other
487
00:22:32,340 --> 00:22:34,440
times I was not okay because I was
488
00:22:34,440 --> 00:22:37,140
chasing the market. By having these
489
00:22:37,140 --> 00:22:40,050
levels pre determined based on the
490
00:22:40,050 --> 00:22:42,360
higher time frame. You can sit on your
491
00:22:42,360 --> 00:22:45,210
hands and exercise that dreaded word
492
00:22:45,210 --> 00:22:47,370
patience. Okay, because a lot of times I
493
00:22:47,670 --> 00:22:49,860
you know, I talked about that, and I
494
00:22:49,860 --> 00:22:51,780
stressed the importance of having
495
00:22:51,780 --> 00:22:54,570
patients and submitting to time, okay,
496
00:22:54,570 --> 00:22:56,790
because if we're using these daily and
497
00:22:56,790 --> 00:22:58,650
four hour charts, it's going to take
498
00:22:58,680 --> 00:23:00,690
time for price to get These particular
499
00:23:00,690 --> 00:23:03,330
price levels. Now, why am I teaching
500
00:23:03,360 --> 00:23:05,490
this timeframe? Well, because most of
501
00:23:05,490 --> 00:23:06,630
you can't sit it in front of your
502
00:23:06,630 --> 00:23:08,040
computers all day long and trade for a
503
00:23:08,040 --> 00:23:10,290
living. As much as you aspire to do that
504
00:23:10,590 --> 00:23:13,170
you all have, what responsibilities, you
505
00:23:13,170 --> 00:23:14,160
have mortgage payments, you have
506
00:23:14,160 --> 00:23:15,810
children, you have spouses to take care
507
00:23:15,810 --> 00:23:18,150
of, if your wives you have husbands to
508
00:23:18,150 --> 00:23:21,150
deal with. So the bottom line is, is you
509
00:23:21,150 --> 00:23:23,580
have a lot of responsibilities and very
510
00:23:23,580 --> 00:23:25,290
little time on your hands to be able to
511
00:23:25,290 --> 00:23:27,510
apply to analysis. Now Sure, you can go
512
00:23:27,510 --> 00:23:29,760
back and look at hindsight and study
513
00:23:29,760 --> 00:23:31,560
intraday action like that. And there's
514
00:23:31,770 --> 00:23:33,300
certainly nothing wrong with that. But
515
00:23:33,750 --> 00:23:35,340
for the most part, by far and large
516
00:23:35,400 --> 00:23:38,040
majority of you are watching this all
517
00:23:38,040 --> 00:23:40,560
have nine to five or similar that keeps
518
00:23:40,560 --> 00:23:43,530
you from having the time to sit in front
519
00:23:43,530 --> 00:23:45,660
of the charts and trade intraday. So,
520
00:23:46,620 --> 00:23:47,970
again, I'm teaching this timeframe
521
00:23:47,970 --> 00:23:49,440
because it will allow those that have
522
00:23:49,440 --> 00:23:52,770
jobs, to formulate trading ideas and
523
00:23:52,770 --> 00:23:54,900
your demo account to build confidence
524
00:23:54,900 --> 00:23:57,030
and understanding in technical analysis
525
00:23:57,210 --> 00:23:59,550
and still possibly take part of
526
00:24:00,000 --> 00:24:02,850
profitable swings that market entities
527
00:24:03,090 --> 00:24:06,360
push price up or down based on these
528
00:24:06,360 --> 00:24:08,040
higher level support resistance levels.
529
00:24:09,360 --> 00:24:10,950
Now, again, we have a snapshot in front
530
00:24:10,950 --> 00:24:13,410
of us here. This is essentially a two
531
00:24:13,410 --> 00:24:15,720
and a half weeks worth of price data.
532
00:24:16,830 --> 00:24:20,010
But again, these levels were noted prior
533
00:24:20,310 --> 00:24:22,920
to these price points up here, okay, we
534
00:24:22,920 --> 00:24:24,870
were calling the market lower up in here
535
00:24:25,230 --> 00:24:27,750
and the market has slid lower okay to
536
00:24:27,750 --> 00:24:30,690
the tune of about what is that let's get
537
00:24:30,690 --> 00:24:32,940
a good, good feel for what that price
538
00:24:32,940 --> 00:24:34,260
level was. We'll get about middle of
539
00:24:34,260 --> 00:24:37,080
that consolidation. And the lowest low
540
00:24:37,080 --> 00:24:40,530
on last Friday comes in around 285 pips
541
00:24:40,530 --> 00:24:44,250
or so. Not bad, not bad for, you know, a
542
00:24:44,250 --> 00:24:49,200
future perspective in terms of analysis
543
00:24:49,350 --> 00:24:52,470
a lot, a lot of my haters that really
544
00:24:52,500 --> 00:24:54,480
have no interest in learning this stuff.
545
00:24:54,480 --> 00:24:56,610
They just want to DeRay on the track.
546
00:24:56,790 --> 00:24:58,440
folks that are out here doing this stuff
547
00:24:58,890 --> 00:25:00,510
for free. I don't sell them And I just
548
00:25:00,510 --> 00:25:02,820
do it as a as a hobby. As you can see,
549
00:25:02,820 --> 00:25:06,960
it's been a delay in my release of this
550
00:25:07,110 --> 00:25:09,240
episode. And that's another reason why I
551
00:25:09,240 --> 00:25:10,590
will never sell anything because I
552
00:25:10,590 --> 00:25:12,510
really have a life. And I'm not gonna
553
00:25:13,140 --> 00:25:15,570
subject you guys to any kind of payment,
554
00:25:15,810 --> 00:25:18,360
okay, and, you know, selling things
555
00:25:18,360 --> 00:25:19,140
because number one, I don't want to
556
00:25:19,140 --> 00:25:21,810
hassle to, I don't need your money. And
557
00:25:21,810 --> 00:25:24,240
three, I can't promise you I'm going to
558
00:25:24,240 --> 00:25:26,700
have the free time to consistently give
559
00:25:26,700 --> 00:25:29,370
you what you would reasonably expect in
560
00:25:29,370 --> 00:25:31,590
a paid service. So there are guys out
561
00:25:31,590 --> 00:25:33,870
there that have you know, services and
562
00:25:34,170 --> 00:25:35,910
some of them probably shouldn't be doing
563
00:25:35,910 --> 00:25:38,040
it. Then you have others out there that
564
00:25:38,130 --> 00:25:39,690
you know are doing it and maybe there
565
00:25:39,690 --> 00:25:41,970
are, you know, worthwhile and they have
566
00:25:41,970 --> 00:25:42,360
a,
567
00:25:43,650 --> 00:25:45,870
you know, assistance to new traders.
568
00:25:46,290 --> 00:25:48,360
It's not up to me need to judge those
569
00:25:48,360 --> 00:25:49,950
individuals. I can just tell you that me
570
00:25:49,950 --> 00:25:52,560
personally, in the form of a mentor, you
571
00:25:52,560 --> 00:25:53,970
get what you get when you get it. I
572
00:25:53,970 --> 00:25:55,950
mean, I don't mean to be ignorant about
573
00:25:55,950 --> 00:25:57,360
it. But you know, like I said, I do have
574
00:25:58,200 --> 00:26:04,980
a job of being father, husband, and my
575
00:26:04,980 --> 00:26:08,700
life is interesting in it many times
576
00:26:08,700 --> 00:26:10,200
pulls me in directions I really didn't
577
00:26:10,200 --> 00:26:12,870
plan on from the time I lay my head down
578
00:26:12,870 --> 00:26:14,700
to kind of wake up, a lot of things can
579
00:26:14,700 --> 00:26:16,950
happen in ICT world and you know, I
580
00:26:16,950 --> 00:26:18,630
could be involved in things that I
581
00:26:18,630 --> 00:26:21,540
hadn't planned on. And that's what this
582
00:26:21,630 --> 00:26:23,850
market can provide for you a lot of
583
00:26:23,850 --> 00:26:26,490
freedom to do that very thing. I'm not
584
00:26:26,490 --> 00:26:28,800
locked into having to do any one thing
585
00:26:28,800 --> 00:26:31,530
or another. The freedom to be able to
586
00:26:31,530 --> 00:26:34,710
say, you know what, I've reached my
587
00:26:34,710 --> 00:26:36,990
goal. I don't ever have to go to my
588
00:26:37,020 --> 00:26:40,770
employment place anymore. Okay, whatever
589
00:26:40,770 --> 00:26:42,120
that is, you plug that in, if you're
590
00:26:42,120 --> 00:26:44,610
looking if you work at a, an industrial
591
00:26:45,630 --> 00:26:47,670
job, or if you're a truck driver, or if
592
00:26:47,670 --> 00:26:49,530
you're a mechanic or if you're a doctor,
593
00:26:49,530 --> 00:26:53,400
a nurse, ice cream truck, guy. How about
594
00:26:53,400 --> 00:26:57,780
that hustle? bottom line is you have to
595
00:26:58,050 --> 00:26:59,880
get to that point and it doesn't happen.
596
00:26:59,880 --> 00:27:02,970
Every Tonight, so, use these tools, okay
597
00:27:02,970 --> 00:27:05,790
to help frame your inner traitor that
598
00:27:05,790 --> 00:27:08,460
will eventually come to fruition. After
599
00:27:08,460 --> 00:27:10,320
you gain a level of confidence in
600
00:27:10,320 --> 00:27:12,960
yourself, firstly, that you can stick to
601
00:27:12,960 --> 00:27:16,080
the procedures, then trust the tools.
602
00:27:16,530 --> 00:27:18,420
And then when those two come together,
603
00:27:18,840 --> 00:27:21,780
then you find a level of consistency at
604
00:27:21,780 --> 00:27:23,940
your time of choosing, not when I say or
605
00:27:23,940 --> 00:27:26,700
another mentor, and whatever, you know
606
00:27:26,730 --> 00:27:28,890
book that you buy suggests that you
607
00:27:28,890 --> 00:27:31,080
should go to live trading or full time
608
00:27:31,080 --> 00:27:33,570
trading. You'll know it when you know,
609
00:27:33,990 --> 00:27:35,940
okay, believe me you'll if you feel like
610
00:27:35,940 --> 00:27:37,530
you're rushing, you probably are so
611
00:27:37,530 --> 00:27:40,500
don't, don't get in a race to try to say
612
00:27:40,500 --> 00:27:44,040
well, I'm quitting my job. Okay. I'm
613
00:27:44,040 --> 00:27:45,870
phoning out these little notes I have
614
00:27:45,870 --> 00:27:48,690
next to my keyboard here because I've
615
00:27:48,900 --> 00:27:50,280
been getting emails so I'm kind of
616
00:27:50,280 --> 00:27:52,470
tossing these little nuggets out in the
617
00:27:52,470 --> 00:27:54,120
midst of having these recordings. So
618
00:27:54,120 --> 00:27:55,890
hopefully I'm answering your your
619
00:27:55,890 --> 00:27:59,790
inquiries. So now by looking at these
620
00:27:59,820 --> 00:28:01,680
two and a half weeks or such in price
621
00:28:01,680 --> 00:28:05,070
data, we call the market lower back
622
00:28:05,070 --> 00:28:09,120
here. Okay, so how would one reasonably
623
00:28:09,120 --> 00:28:11,100
expect to participate in the
624
00:28:11,100 --> 00:28:13,980
marketplace, as price moves lower number
625
00:28:13,980 --> 00:28:16,440
one, we have these price levels noted.
626
00:28:16,500 --> 00:28:18,720
And again, from this point in here,
627
00:28:19,050 --> 00:28:21,180
these levels were on the chart, they
628
00:28:21,180 --> 00:28:23,340
would be walking forward, you would see
629
00:28:23,340 --> 00:28:27,000
price reacting, real time at these price
630
00:28:27,000 --> 00:28:30,180
points, okay. Again, this is a 15 minute
631
00:28:30,180 --> 00:28:32,190
timeframe. So you would have smaller
632
00:28:32,190 --> 00:28:33,690
dealing rain support resistance levels
633
00:28:33,690 --> 00:28:35,670
on these timeframes as well but not as
634
00:28:35,700 --> 00:28:38,730
important as the daily and for our
635
00:28:38,730 --> 00:28:41,250
timeframes, because those are where the
636
00:28:41,250 --> 00:28:42,750
large institutional traders are spent
637
00:28:42,870 --> 00:28:44,460
spending majority of their time looking
638
00:28:44,460 --> 00:28:47,190
for value. Okay, much we're going to
639
00:28:47,190 --> 00:28:50,670
talk about that. So now, again, we
640
00:28:50,670 --> 00:28:52,350
talked about how, in the previous
641
00:28:52,350 --> 00:28:55,080
episode that the market tends to make
642
00:28:55,080 --> 00:28:58,650
its high or low in the first few days of
643
00:28:58,650 --> 00:29:00,330
the week, generally by Tuesday. On and
644
00:29:00,330 --> 00:29:02,220
open and at the very latest many times
645
00:29:02,220 --> 00:29:04,410
you'll find it Wednesdays London open is
646
00:29:04,410 --> 00:29:07,590
like the last cusp of where the higher
647
00:29:07,590 --> 00:29:09,330
low if it's a down week, the high would
648
00:29:09,330 --> 00:29:11,670
be formed. But generally between Monday
649
00:29:11,670 --> 00:29:14,970
and Tuesday, you see it forming the
650
00:29:14,970 --> 00:29:17,580
higher low. And now what that going
651
00:29:17,580 --> 00:29:19,560
forward, okay, you can see that we did
652
00:29:19,560 --> 00:29:22,410
have the high form. I think it just went
653
00:29:22,410 --> 00:29:24,240
above a few pips, maybe one or two pips
654
00:29:24,240 --> 00:29:26,280
here on Wednesday. So it came true as
655
00:29:26,280 --> 00:29:29,250
well here moved lower. Okay, but then we
656
00:29:29,250 --> 00:29:33,150
moved into this week here, okay. And
657
00:29:33,150 --> 00:29:35,280
it's kind of unique in a sense, because
658
00:29:35,910 --> 00:29:37,620
if you've been watching the news or been
659
00:29:37,620 --> 00:29:39,870
reading newspapers and such, there's
660
00:29:39,870 --> 00:29:44,100
been some saber rattling about the US
661
00:29:44,130 --> 00:29:47,160
potentially striking Syria. I'm not
662
00:29:47,160 --> 00:29:49,800
going to go into political stance on get
663
00:29:49,800 --> 00:29:51,210
on my soapbox about what we should or
664
00:29:51,210 --> 00:29:53,280
shouldn't do and regards to that, but it
665
00:29:53,280 --> 00:29:57,270
has caused a lot of uncertainty in terms
666
00:29:57,300 --> 00:30:01,680
of what is going To be the outcome of
667
00:30:01,680 --> 00:30:05,040
all that, okay? And this is really good
668
00:30:05,040 --> 00:30:06,750
in a sense because it gives me an
669
00:30:06,750 --> 00:30:09,840
opportunity to plug in something that
670
00:30:09,870 --> 00:30:11,610
otherwise if it hadn't hadn't been
671
00:30:11,610 --> 00:30:13,590
happening, I would just be talking about
672
00:30:13,590 --> 00:30:14,910
it conceptually. But now we're going to
673
00:30:14,940 --> 00:30:16,800
have a, a real world example of what
674
00:30:16,800 --> 00:30:19,050
this implies when you do your own
675
00:30:19,050 --> 00:30:22,050
analysis. When there's uncertainty,
676
00:30:22,530 --> 00:30:23,940
okay, when there's uncertainty in the
677
00:30:23,940 --> 00:30:26,940
marketplace or the the global economy,
678
00:30:27,570 --> 00:30:27,990
you know,
679
00:30:28,560 --> 00:30:29,160
arena,
680
00:30:30,030 --> 00:30:32,730
the participants get really, really
681
00:30:32,760 --> 00:30:35,490
spooked. Okay? And what will happen is
682
00:30:36,900 --> 00:30:39,750
the large institutional traders, okay,
683
00:30:39,780 --> 00:30:41,880
many times will scale back their risk,
684
00:30:42,690 --> 00:30:46,830
don't reduce their position sizes, or
685
00:30:47,010 --> 00:30:49,350
their new trades, maybe they'll they
686
00:30:49,350 --> 00:30:52,770
were going to do a large block of orders
687
00:30:52,770 --> 00:30:55,260
to be an accumulation of a buy position.
688
00:30:55,560 --> 00:30:57,750
Maybe they're still bullish, but because
689
00:30:57,750 --> 00:31:02,490
of the global stance against, you know,
690
00:31:03,180 --> 00:31:04,920
dis potential strike and the
691
00:31:04,920 --> 00:31:07,230
implications it may have on the markets.
692
00:31:07,530 --> 00:31:09,870
Maybe they have reduced their overall
693
00:31:09,870 --> 00:31:11,640
exposure by saying, well, we're going to
694
00:31:11,640 --> 00:31:13,620
buy it because we fundamentally,
695
00:31:13,800 --> 00:31:15,450
fundamentally think it's going to go
696
00:31:15,450 --> 00:31:19,860
higher or lower. Okay. They just scale
697
00:31:19,860 --> 00:31:21,840
back that and that's something that you
698
00:31:21,840 --> 00:31:23,820
should do as well. So what do I mean by
699
00:31:23,820 --> 00:31:26,040
that? Well, I mean, number one, scale
700
00:31:26,040 --> 00:31:28,470
back the level of trading leverage
701
00:31:28,470 --> 00:31:30,660
you're using, because anything can
702
00:31:30,660 --> 00:31:32,190
happen in these types of environments.
703
00:31:32,220 --> 00:31:35,910
Okay. But what will generally you'll see
704
00:31:35,910 --> 00:31:38,280
happening is there'll be a lot of range
705
00:31:38,280 --> 00:31:42,660
bound trading and spiky consolidation.
706
00:31:44,070 --> 00:31:46,530
But there's still opportunity to trade
707
00:31:46,560 --> 00:31:47,970
in that environment. You just got to
708
00:31:47,970 --> 00:31:52,410
lower your expectation. Slow down in
709
00:31:52,410 --> 00:31:54,450
terms of what you expect to see in terms
710
00:31:54,450 --> 00:31:57,510
of time, okay, and expect to spend a
711
00:31:57,510 --> 00:32:00,330
whole lot of time in the market moves I
712
00:32:00,360 --> 00:32:03,270
like for instance, if one was a buyer
713
00:32:03,270 --> 00:32:06,030
here on Tuesday, you'd have to sit
714
00:32:06,030 --> 00:32:08,010
through a long period of time before we
715
00:32:08,010 --> 00:32:11,910
got into the New York open on this day
716
00:32:11,910 --> 00:32:16,110
here on the September 4, before the part
717
00:32:16,140 --> 00:32:18,090
of the price new release to the upside.
718
00:32:18,720 --> 00:32:24,120
Now, if one was a seller, okay, you'd
719
00:32:24,120 --> 00:32:27,810
have to rely more on these resistance
720
00:32:27,810 --> 00:32:31,320
levels. Okay? And stick true to trading
721
00:32:31,350 --> 00:32:35,310
only at or very close to these levels.
722
00:32:35,820 --> 00:32:39,030
Meaning that if the market environment
723
00:32:39,030 --> 00:32:40,950
suggests that it's a lot of uncertainty,
724
00:32:41,250 --> 00:32:44,370
okay, there would be times where it
725
00:32:44,370 --> 00:32:45,870
maybe the price moved up here off these
726
00:32:45,930 --> 00:32:48,390
key resistance level and traded lower
727
00:32:48,390 --> 00:32:50,370
and then gave a retracement and maybe I
728
00:32:50,370 --> 00:32:52,500
would trade something away from that
729
00:32:52,500 --> 00:32:54,930
level. Okay, I want to own more
730
00:32:57,030 --> 00:32:59,130
calmer, global
731
00:33:00,659 --> 00:33:02,279
arena, okay, when there wasn't so much
732
00:33:02,279 --> 00:33:04,559
uncertainty because of potentially war
733
00:33:04,829 --> 00:33:06,239
breaking out in the Middle East and the
734
00:33:06,239 --> 00:33:09,059
implications that has, I would not be
735
00:33:09,059 --> 00:33:11,249
willing to trade far away from these
736
00:33:11,249 --> 00:33:13,409
levels and continue to move lower,
737
00:33:13,589 --> 00:33:15,359
meaning that I would miss these little
738
00:33:15,359 --> 00:33:17,009
small little moves in here because I
739
00:33:17,009 --> 00:33:18,989
don't care about trading out here in
740
00:33:18,989 --> 00:33:21,299
this open space between this level here
741
00:33:21,299 --> 00:33:23,309
and this level here. I would be more
742
00:33:23,309 --> 00:33:25,529
inclined to be trading at these levels.
743
00:33:25,559 --> 00:33:27,779
Okay. And you can see when price gets
744
00:33:27,779 --> 00:33:30,239
these levels the reaction to has okay.
745
00:33:30,779 --> 00:33:32,549
And that's what you want to be focusing
746
00:33:32,669 --> 00:33:37,529
focusing on the the the pact of these
747
00:33:37,559 --> 00:33:39,239
higher level timeframe support
748
00:33:39,239 --> 00:33:41,489
resistance levels, and applying that to
749
00:33:41,489 --> 00:33:43,469
your trading only trading when it gets
750
00:33:43,469 --> 00:33:46,379
to those particular levels and a
751
00:33:46,469 --> 00:33:48,809
confluence of other supporting
752
00:33:50,789 --> 00:33:52,949
indicators, whether it be price
753
00:33:52,949 --> 00:33:55,109
indicators or economic indicators that
754
00:33:55,109 --> 00:33:57,419
come around in terms of your economic
755
00:33:57,419 --> 00:33:59,399
calendar, and Hello, have you been
756
00:33:59,399 --> 00:34:01,559
looking at that? You should be because
757
00:34:01,559 --> 00:34:04,409
those things are very significant terms
758
00:34:04,409 --> 00:34:05,729
of trading. You got to know what's
759
00:34:05,729 --> 00:34:09,689
coming down the pike guys. So let's go
760
00:34:09,689 --> 00:34:13,319
in here and zoom in a little bit and go
761
00:34:13,319 --> 00:34:18,479
over what had transpired here. Okay? And
762
00:34:18,989 --> 00:34:22,499
we're going to use Friday, two Fridays
763
00:34:22,499 --> 00:34:24,239
ago. Okay and we're going to use this
764
00:34:24,239 --> 00:34:27,389
price point here. Okay? We have a price
765
00:34:27,389 --> 00:34:31,079
move down smaller retracement another
766
00:34:31,079 --> 00:34:33,839
move down. Okay and then a retracement.
767
00:34:34,259 --> 00:34:38,939
Okay. So we had one leg, two legs and
768
00:34:38,939 --> 00:34:42,029
then a retracement. Okay, now, another
769
00:34:42,029 --> 00:34:44,489
retrace to this particular level here at
770
00:34:44,489 --> 00:34:46,709
132 20 level
771
00:34:48,090 --> 00:34:49,860
one Monday, okay.
772
00:34:50,940 --> 00:34:53,280
We were still obviously looking for
773
00:34:53,310 --> 00:34:55,410
selling scenario because we were
774
00:34:55,410 --> 00:34:57,450
expecting lower prices based on a higher
775
00:34:57,450 --> 00:35:00,000
time frame idea that we're going to find
776
00:35:00,000 --> 00:35:00,810
rush out here.
777
00:35:01,680 --> 00:35:02,220
But
778
00:35:02,940 --> 00:35:05,220
we have a range high here to this range
779
00:35:05,220 --> 00:35:11,670
low. Okay. I'm going to show you this is
780
00:35:12,180 --> 00:35:16,890
the range here from the low to the high
781
00:35:16,920 --> 00:35:20,280
of that previous Friday. Okay. Now why
782
00:35:20,280 --> 00:35:21,930
am I using these price points? Okay,
783
00:35:21,930 --> 00:35:24,150
well, whenever you start a new week, I
784
00:35:24,150 --> 00:35:28,470
like to use discernible price swings and
785
00:35:28,470 --> 00:35:30,000
this is discernible. It's very clear,
786
00:35:30,030 --> 00:35:32,970
very distinct. Much in sync capacity
787
00:35:32,970 --> 00:35:36,300
this high down to this low is okay. Now
788
00:35:36,330 --> 00:35:38,880
you could have your level from this high
789
00:35:38,940 --> 00:35:41,460
to this low, but I'm not expecting much
790
00:35:41,460 --> 00:35:43,110
of a retracement because we're overall
791
00:35:43,110 --> 00:35:45,900
expected bearish on higher timeframe. So
792
00:35:46,320 --> 00:35:48,120
the likelihood of it retracing all the
793
00:35:48,120 --> 00:35:50,070
way up to these levels short could but I
794
00:35:50,070 --> 00:35:52,740
don't expect it. Okay, so I'm looking at
795
00:35:52,740 --> 00:35:54,240
price where we moved into this
796
00:35:54,240 --> 00:35:56,910
consolidation and we broke down. We're
797
00:35:56,910 --> 00:35:58,020
going to come right back to that same
798
00:35:58,020 --> 00:36:03,750
consolidation. Okay. price comes right
799
00:36:03,750 --> 00:36:05,910
up into that 62 level and then trade it
800
00:36:05,910 --> 00:36:09,150
off. Okay? We're going to use this same
801
00:36:09,150 --> 00:36:12,240
high and this low here, because this is
802
00:36:12,240 --> 00:36:15,720
a new swing a price swing from this high
803
00:36:15,720 --> 00:36:18,480
to this low. It's a larger, more
804
00:36:18,780 --> 00:36:21,030
dominant price swing, whereas this is a
805
00:36:21,030 --> 00:36:22,950
small little short term price swing and
806
00:36:22,950 --> 00:36:26,280
then a retracement. This is leg one leg
807
00:36:26,280 --> 00:36:27,060
two together.
808
00:36:27,270 --> 00:36:29,850
Okay, so here's leg one. And here's leg
809
00:36:29,850 --> 00:36:30,180
two.
810
00:36:30,959 --> 00:36:32,879
Now, if you look at the high down to
811
00:36:32,879 --> 00:36:33,629
that low,
812
00:36:36,060 --> 00:36:37,500
formed here on Tuesday,
813
00:36:38,850 --> 00:36:41,370
we have this high and we have this low.
814
00:36:43,500 --> 00:36:44,400
See what we have here.
815
00:36:45,750 --> 00:36:47,280
Price coming up to that sweet spot.
816
00:36:47,400 --> 00:36:50,190
Boom. Hit that right on Friday. I'm
817
00:36:50,190 --> 00:36:50,940
sorry Thursday
818
00:36:51,480 --> 00:36:52,230
and traded lower.
819
00:36:54,540 --> 00:36:57,960
Moving into the low on Friday. Okay, so
820
00:36:57,960 --> 00:37:04,320
now What was up here that caused this
821
00:37:04,320 --> 00:37:08,640
reaction? Okay, that's one of the
822
00:37:08,700 --> 00:37:10,860
assignments I want you to look at, go
823
00:37:10,860 --> 00:37:14,250
over your economic calendar, go over
824
00:37:14,790 --> 00:37:18,060
your, your charts on a five minute basis
825
00:37:18,720 --> 00:37:21,810
on an hourly basis for hour and daily.
826
00:37:21,930 --> 00:37:24,060
Okay, really hone in on this little area
827
00:37:24,060 --> 00:37:25,800
right here. Okay.
828
00:37:29,880 --> 00:37:30,540
The
829
00:37:32,040 --> 00:37:35,310
breakdown in the fiber or your yesterday
830
00:37:35,310 --> 00:37:38,940
as we would commonly hear it referred to
831
00:37:38,940 --> 00:37:41,670
as this was the actual high it was
832
00:37:41,670 --> 00:37:45,090
formed on the fiber and we traded lower.
833
00:37:46,230 --> 00:37:48,450
And right before that price high, okay,
834
00:37:48,480 --> 00:37:50,160
I want you to see something here. See
835
00:37:50,160 --> 00:37:53,730
this low. Okay, let's zoom out just one
836
00:37:53,730 --> 00:37:58,380
stage. Here's the high. Okay. Here's
837
00:37:58,380 --> 00:37:59,820
these lows that we're just talking
838
00:37:59,820 --> 00:38:02,190
about. The market broke those right
839
00:38:02,190 --> 00:38:06,960
there. Okay, when we see that that's
840
00:38:06,960 --> 00:38:08,610
generally a sign that this market wants
841
00:38:08,610 --> 00:38:10,410
to break down much in the same way you
842
00:38:10,410 --> 00:38:13,410
see it here. Okay, it broke the low here
843
00:38:13,830 --> 00:38:15,870
and tried to rally up and was a false
844
00:38:15,960 --> 00:38:18,330
swing and then gave up the ghost and
845
00:38:18,330 --> 00:38:20,820
went lower. Well, we have that same
846
00:38:20,820 --> 00:38:25,500
scenario here. Okay. And the reason why
847
00:38:25,500 --> 00:38:28,440
price was expected to break down here is
848
00:38:28,440 --> 00:38:31,110
if we go out to a daily chart real
849
00:38:31,110 --> 00:38:37,350
quick. See this old set of highs back
850
00:38:37,350 --> 00:38:40,710
here, price one just above that, ran to
851
00:38:40,710 --> 00:38:43,680
the 134 50 figure, mid figure right here
852
00:38:43,710 --> 00:38:48,240
rather and then traded lower. When we
853
00:38:48,240 --> 00:38:50,340
had this price pattern here, these are
854
00:38:50,400 --> 00:38:53,730
referred to as railroad tracks. Okay.
855
00:38:54,420 --> 00:38:56,610
And I like to see these types of
856
00:38:56,610 --> 00:38:57,990
patterns because number one, they're
857
00:38:59,160 --> 00:39:01,080
pretty powerful. In terms of
858
00:39:01,110 --> 00:39:03,660
prognostication, you see what happened
859
00:39:03,660 --> 00:39:06,660
here and price gave a very nice
860
00:39:06,870 --> 00:39:08,880
retracement here. This is very tradable.
861
00:39:09,360 --> 00:39:10,800
Now obviously when you contrast it
862
00:39:10,800 --> 00:39:12,240
against something like this where it
863
00:39:12,240 --> 00:39:13,440
rallies up like this where the rally
864
00:39:13,440 --> 00:39:15,720
here or the decline here, it doesn't
865
00:39:15,720 --> 00:39:18,030
look so dynamic but if you were to look
866
00:39:18,030 --> 00:39:21,870
inside that range from this high to this
867
00:39:21,870 --> 00:39:24,810
low we're looking at 168 pips, would you
868
00:39:24,810 --> 00:39:26,400
just throw away the opportunity to make
869
00:39:26,400 --> 00:39:29,670
on and 68 pips? Certainly not. Or at
870
00:39:29,670 --> 00:39:33,750
least you shouldn't. So again, dealing
871
00:39:33,750 --> 00:39:35,400
with these daily charts, there's a lot
872
00:39:35,400 --> 00:39:36,990
of pips, there's a lot of potential
873
00:39:37,470 --> 00:39:39,990
setups that are available to one, if you
874
00:39:39,990 --> 00:39:41,610
understand what you're looking for,
875
00:39:41,730 --> 00:39:44,550
okay, because we're looking at price and
876
00:39:44,550 --> 00:39:47,490
an old high here, when prices run up
877
00:39:47,490 --> 00:39:50,070
through an old high, but look at look at
878
00:39:50,100 --> 00:39:52,890
where the market came from. We come all
879
00:39:52,890 --> 00:39:54,420
the way up this low in the beginning of
880
00:39:54,420 --> 00:39:56,700
July, and it was basically a one sided
881
00:39:56,700 --> 00:39:58,590
market we very had very little
882
00:39:58,590 --> 00:40:01,020
retracements and Skip driving higher and
883
00:40:01,020 --> 00:40:06,360
higher and higher. Now, I got a lot of
884
00:40:07,620 --> 00:40:09,540
lines on this chart, but I'm going to
885
00:40:09,540 --> 00:40:10,740
refrain from taking them off because I'm
886
00:40:10,740 --> 00:40:12,930
gonna need them in a moment. But we have
887
00:40:12,930 --> 00:40:15,060
this rally up makes a swing high, then
888
00:40:15,060 --> 00:40:17,010
we rally up mixing those swing high and
889
00:40:17,010 --> 00:40:18,810
we rally up makes a higher swing high.
890
00:40:18,900 --> 00:40:22,140
Okay? Whenever you see the moves like
891
00:40:22,140 --> 00:40:23,940
this, keep pushing Higher, higher,
892
00:40:23,940 --> 00:40:28,260
higher into an old high. These are areas
893
00:40:28,260 --> 00:40:30,720
of where heavy distribution is taking
894
00:40:30,720 --> 00:40:36,960
place. Now, I learned a pattern called
895
00:40:37,020 --> 00:40:39,450
the three Indians pattern, okay. And
896
00:40:39,450 --> 00:40:42,000
it's basically like a three drive
897
00:40:42,540 --> 00:40:44,340
pattern where you got one high and
898
00:40:44,370 --> 00:40:48,000
higher high and another high, okay. It's
899
00:40:48,000 --> 00:40:49,770
a very common pattern. It's been around
900
00:40:49,770 --> 00:40:52,200
forever and I can't remember who really
901
00:40:52,200 --> 00:40:54,540
originated it. Larry Williams did some
902
00:40:54,570 --> 00:40:57,120
discussion on it. But I always just
903
00:40:57,120 --> 00:40:59,130
revert back to just you know, the street
904
00:40:59,130 --> 00:40:59,820
smarts book.
905
00:41:01,589 --> 00:41:04,379
Linda and Larry. And you can just google
906
00:41:04,379 --> 00:41:06,839
them up on the internet again, books
907
00:41:06,839 --> 00:41:09,389
street smarts. In the pattern here
908
00:41:09,389 --> 00:41:11,339
you're seeing is the three Indians
909
00:41:11,339 --> 00:41:13,559
pattern. It's a climax reversal pattern,
910
00:41:13,739 --> 00:41:16,979
meaning that the price is driven up to
911
00:41:16,979 --> 00:41:18,929
an extreme and generally it's just rate
912
00:41:18,929 --> 00:41:21,149
above an old high or into an old high.
913
00:41:21,539 --> 00:41:22,649
And then you can reasonably expect to
914
00:41:22,649 --> 00:41:25,109
see price the trade off. Now, I'm not
915
00:41:25,109 --> 00:41:27,149
suggesting Please don't take this as
916
00:41:27,149 --> 00:41:29,279
this is the high of the euro and it's
917
00:41:29,279 --> 00:41:30,869
going to go down to hell, okay, that's
918
00:41:30,869 --> 00:41:33,149
not what I'm saying here. Okay. What I'm
919
00:41:33,149 --> 00:41:34,949
saying is it's giving you a tradable
920
00:41:34,979 --> 00:41:37,289
reaction. That's sizable, okay. And
921
00:41:37,289 --> 00:41:38,519
we're going to talk about where we would
922
00:41:38,519 --> 00:41:39,539
be reasonably expected to see this
923
00:41:39,539 --> 00:41:42,239
market go lower. Okay, based on this
924
00:41:42,299 --> 00:41:45,059
understanding here, but looking at this
925
00:41:45,059 --> 00:41:47,189
high here, when we ran through that and
926
00:41:47,189 --> 00:41:49,109
gave up the ghost on that candle right
927
00:41:49,109 --> 00:41:52,499
there, that was the fate sealer for me,
928
00:41:52,919 --> 00:41:54,629
that we're probably looking to see this
929
00:41:54,629 --> 00:41:56,819
market blow out and go lower and then
930
00:41:56,819 --> 00:41:59,459
when the next candle here took out the
931
00:41:59,459 --> 00:42:02,609
lows Prior to that rally, okay that
932
00:42:02,609 --> 00:42:04,079
right there is a break in market
933
00:42:04,079 --> 00:42:07,349
structure that right there suggests that
934
00:42:07,349 --> 00:42:09,359
this market is now poised to trade
935
00:42:09,359 --> 00:42:12,029
lower. So any rallies from this point on
936
00:42:12,269 --> 00:42:13,979
should be suspect in other words you
937
00:42:13,979 --> 00:42:17,279
selling Are you selling into them as a
938
00:42:17,309 --> 00:42:19,889
mode of trading, so don't be buying into
939
00:42:19,889 --> 00:42:21,629
it expecting to keep going higher now
940
00:42:21,809 --> 00:42:23,729
will eventually sometimes do that
941
00:42:23,729 --> 00:42:25,679
certainly will. Okay because I'm not
942
00:42:25,679 --> 00:42:28,139
100% but by far and large when you see
943
00:42:28,139 --> 00:42:29,879
these types of events happen, it does
944
00:42:29,879 --> 00:42:31,169
give you an opportunity to trade short.
945
00:42:32,279 --> 00:42:35,039
Just go back down to a 15 minute
946
00:42:35,039 --> 00:42:35,609
timeframe.
947
00:42:43,590 --> 00:42:45,360
Okay, and here's that hi here we were
948
00:42:45,360 --> 00:42:46,890
just discussing and when it broke down
949
00:42:49,110 --> 00:42:53,580
we see the break below the low prior to
950
00:42:53,580 --> 00:42:56,130
that last rally up. Okay. So now here
951
00:42:56,160 --> 00:42:57,990
what we have is we have the range high
952
00:42:58,530 --> 00:43:01,470
to the low once these lows were taken
953
00:43:01,470 --> 00:43:03,300
out, we have a shift in market
954
00:43:03,300 --> 00:43:05,340
structure. Now what does that mean?
955
00:43:05,430 --> 00:43:09,090
Well, it means that we have a low, too
956
00:43:09,090 --> 00:43:12,240
high, a low, too high, then we have a
957
00:43:12,240 --> 00:43:15,660
lower low prior to that rally. So we
958
00:43:15,660 --> 00:43:19,530
have a break in what would be considered
959
00:43:19,620 --> 00:43:22,980
market bullishness breaking down, okay?
960
00:43:24,180 --> 00:43:26,070
Again, because I'm not a fan of support
961
00:43:26,070 --> 00:43:29,700
resistance, I'm not going to draw. I'm
962
00:43:29,700 --> 00:43:32,220
sorry, I shouldn't say very, very large
963
00:43:32,250 --> 00:43:33,750
fan support resistance. I'm just not a
964
00:43:33,990 --> 00:43:36,390
fan of diagonal support resistance in
965
00:43:36,390 --> 00:43:38,610
the form of like trend lines. But if one
966
00:43:38,610 --> 00:43:40,770
was to draw a trend line like this,
967
00:43:41,010 --> 00:43:43,470
okay, one could say okay, well here we
968
00:43:43,470 --> 00:43:45,030
have a price point here we have a price
969
00:43:45,030 --> 00:43:47,460
point here. trend line breaks Here comes
970
00:43:47,460 --> 00:43:49,080
up, retest goes through it just a little
971
00:43:49,080 --> 00:43:51,180
bit and it falls off. That's all fine
972
00:43:51,180 --> 00:43:52,980
and great. Okay, but I've seen many
973
00:43:52,980 --> 00:43:54,300
times where these types of scenarios
974
00:43:54,300 --> 00:43:56,130
don't even have any impact whatsoever.
975
00:43:56,130 --> 00:43:58,980
It's blows on through, okay, so again,
976
00:43:59,070 --> 00:44:01,200
if you try trend lines go right ahead
977
00:44:01,200 --> 00:44:02,910
and use them. I'm not trying to
978
00:44:02,910 --> 00:44:04,800
disparage those that do. I'm just
979
00:44:04,800 --> 00:44:05,850
telling you, if you're looking for trend
980
00:44:05,850 --> 00:44:07,410
lines down the diagonal support
981
00:44:07,410 --> 00:44:09,780
resistance basis with me, you're not
982
00:44:09,780 --> 00:44:11,130
going to find it. There's going to be
983
00:44:11,340 --> 00:44:15,450
you know, a drought because I don't I
984
00:44:15,450 --> 00:44:17,490
don't work with that. So we have this
985
00:44:17,520 --> 00:44:20,460
range here this high and this low. Okay.
986
00:44:20,910 --> 00:44:24,180
And as price rallies on up in here,
987
00:44:24,330 --> 00:44:25,830
price goes right up to that sweet spot.
988
00:44:25,920 --> 00:44:30,600
Okay, as your 70.5 level, unique to ICT.
989
00:44:31,110 --> 00:44:34,050
So here we have price reacting very
990
00:44:34,050 --> 00:44:37,380
nicely. And then coming down, giving you
991
00:44:37,380 --> 00:44:39,210
several opportunities trading off that
992
00:44:39,210 --> 00:44:41,790
62% retracement level see that price is
993
00:44:41,790 --> 00:44:44,730
having a very strong resistance around
994
00:44:44,730 --> 00:44:47,670
that price point. Okay. All of a sudden
995
00:44:47,670 --> 00:44:50,190
the market breaks down again. Okay, and
996
00:44:50,190 --> 00:44:53,010
we start taking out the lows here and
997
00:44:53,040 --> 00:44:56,220
this low here when that thing gives us
998
00:44:56,220 --> 00:44:57,960
all you know it's all over with and you
999
00:44:57,960 --> 00:44:59,580
can see that happening here. The market
1000
00:44:59,580 --> 00:45:01,740
participants derive it lower and then
1001
00:45:01,740 --> 00:45:03,990
just didn't have any momentum whatsoever
1002
00:45:03,990 --> 00:45:07,350
in terms of trying to come back and we
1003
00:45:07,350 --> 00:45:11,280
move lower and lower lower. So now once
1004
00:45:11,280 --> 00:45:12,600
we have this break and Mark structure
1005
00:45:12,600 --> 00:45:15,990
and price rallies up here, okay? what we
1006
00:45:15,990 --> 00:45:19,650
will be doing is looking for areas of
1007
00:45:19,680 --> 00:45:21,540
resistance or support breaking then
1008
00:45:21,540 --> 00:45:23,400
turning resistance where we would time
1009
00:45:23,670 --> 00:45:27,660
shorts. Okay, we time shorts. Now let's
1010
00:45:27,660 --> 00:45:32,880
add a couple examples here. But we're
1011
00:45:32,880 --> 00:45:35,130
going to apply Okay, we're going to
1012
00:45:35,130 --> 00:45:39,450
apply some let's go back to the vertical
1013
00:45:39,450 --> 00:45:42,930
lines here because we're gonna imply the
1014
00:45:42,960 --> 00:45:45,360
week phenomenon that we like to look for
1015
00:45:45,840 --> 00:45:47,820
Tuesday and or Wednesday, forming the
1016
00:45:47,820 --> 00:45:49,650
high the week and you see that happening
1017
00:45:49,650 --> 00:45:52,890
here. Okay, but as price rallied up,
1018
00:45:53,760 --> 00:45:57,000
this is a suspect rally. Why? Because we
1019
00:45:57,000 --> 00:45:59,010
had already broken down based on this
1020
00:45:59,010 --> 00:46:05,070
low uniform Lower on these lows here
1021
00:46:05,070 --> 00:46:08,520
taken out. And the rally up is suspect
1022
00:46:08,550 --> 00:46:10,620
when we start to break lower. We had
1023
00:46:10,620 --> 00:46:11,700
these lows taken out,
1024
00:46:13,019 --> 00:46:13,799
rallies up.
1025
00:46:15,870 --> 00:46:17,550
Now we have a new range, we have this
1026
00:46:17,550 --> 00:46:22,320
high, down to this low. See that? Now
1027
00:46:22,320 --> 00:46:24,000
look at what's happening here, prices
1028
00:46:24,000 --> 00:46:28,500
working within. Here's your 79% 70 and a
1029
00:46:28,500 --> 00:46:32,460
half percent and 60%. All this time
1030
00:46:32,460 --> 00:46:34,530
price spent in that small little
1031
00:46:34,530 --> 00:46:36,630
consolidation, and then price broke
1032
00:46:36,630 --> 00:46:39,900
down, came back up, broke down, came
1033
00:46:39,900 --> 00:46:42,720
back up, broke down, came back up, broke
1034
00:46:42,720 --> 00:46:45,930
down. Okay. Again, we're looking at a 15
1035
00:46:45,930 --> 00:46:49,560
minute time frame. Now, you could frame
1036
00:46:49,560 --> 00:46:52,080
trades on that. Or if you really want to
1037
00:46:52,080 --> 00:46:55,470
reduce risk, okay, you can zero in and
1038
00:46:55,470 --> 00:46:58,560
go lower to a five minute chart. Okay,
1039
00:46:58,560 --> 00:46:59,340
and we're going to do that now. We're
1040
00:46:59,340 --> 00:47:00,960
going to work within The week of the
1041
00:47:01,140 --> 00:47:06,570
seven, what is that 24th and the 30th.
1042
00:47:06,600 --> 00:47:11,160
So it's going down to a five minute. And
1043
00:47:11,160 --> 00:47:12,510
this is where price was consolidating
1044
00:47:12,510 --> 00:47:15,630
all around that area. And price breaks
1045
00:47:15,630 --> 00:47:18,750
down here now rallies up. We have hold
1046
00:47:18,750 --> 00:47:20,460
high here. We have old high here and old
1047
00:47:20,460 --> 00:47:24,030
high here. Watch what we do here. We're
1048
00:47:24,030 --> 00:47:26,820
going to use this high here. This is
1049
00:47:26,820 --> 00:47:30,330
seven GMT is essentially the beginning
1050
00:47:30,930 --> 00:47:33,900
of the European session. And we're going
1051
00:47:33,900 --> 00:47:35,340
to pull it down to the low prior to that
1052
00:47:35,340 --> 00:47:37,890
rally up, goes right to the sweet spot.
1053
00:47:37,920 --> 00:47:41,040
And this candle comes in at 1300 GMT.
1054
00:47:41,040 --> 00:47:43,050
That's New York open. Remember, we were
1055
00:47:43,050 --> 00:47:45,930
talking about how in the previous
1056
00:47:45,930 --> 00:47:50,670
episodes where we could see specific
1057
00:47:50,670 --> 00:47:53,610
price moves unfold in the two largest
1058
00:47:54,540 --> 00:47:55,920
trading sessions that being one and
1059
00:47:55,920 --> 00:47:57,690
open. In New York open those two
1060
00:47:57,720 --> 00:48:00,540
sessions overlap but unified Normally
1061
00:48:00,540 --> 00:48:03,300
inside of individual London and New
1062
00:48:03,300 --> 00:48:05,280
York, there are particular price swings
1063
00:48:05,460 --> 00:48:06,960
that take place and we're gonna discuss
1064
00:48:06,960 --> 00:48:09,630
that later on in this video. But here's
1065
00:48:09,630 --> 00:48:12,540
an opportunity. One could get short one,
1066
00:48:13,020 --> 00:48:14,580
trading off of this resistance level
1067
00:48:14,580 --> 00:48:16,950
that was noted in advance, trades down
1068
00:48:16,980 --> 00:48:18,600
off, bounce off this support. Now notice
1069
00:48:18,600 --> 00:48:20,130
how price sweeps it's the below it a
1070
00:48:20,130 --> 00:48:23,580
little bit, okay, and then reacts when
1071
00:48:23,580 --> 00:48:26,700
it bounces here, okay? Not only is it
1072
00:48:26,700 --> 00:48:29,490
bouncing here to give you a rally to
1073
00:48:29,490 --> 00:48:32,700
sell into, but if you're a scalper Okay,
1074
00:48:32,850 --> 00:48:35,940
if you're a scalper see this low here.
1075
00:48:36,450 --> 00:48:39,180
It rallies on up and spends a lot of
1076
00:48:39,180 --> 00:48:42,150
time in here. Okay, let's look at how
1077
00:48:42,150 --> 00:48:46,500
much of a bounce that took place. We're
1078
00:48:46,500 --> 00:48:50,430
looking at about 35 pips or so of a
1079
00:48:50,430 --> 00:48:52,980
bounce. So if you're a scalper, here's
1080
00:48:52,980 --> 00:48:54,450
your higher time frame support level.
1081
00:48:55,920 --> 00:48:58,080
You have an old low back here, this
1082
00:48:58,080 --> 00:49:02,130
rally and then dips down, okay, it goes
1083
00:49:02,130 --> 00:49:04,020
back to this same little consolidation.
1084
00:49:04,620 --> 00:49:08,790
market participants are gonna be really
1085
00:49:08,790 --> 00:49:11,910
sensitive to this area of interest in
1086
00:49:11,910 --> 00:49:15,180
terms of price data. When price moves
1087
00:49:15,210 --> 00:49:17,220
out of a consolidation and it eventually
1088
00:49:17,220 --> 00:49:18,750
comes back down to it, it's reasonable
1089
00:49:18,750 --> 00:49:20,430
to expect another reaction now, it
1090
00:49:20,430 --> 00:49:21,900
doesn't mean it's going to go right to
1091
00:49:21,900 --> 00:49:24,480
the moon. Okay, but if you are bearish
1092
00:49:24,720 --> 00:49:27,450
and if you're a scalper on a short term
1093
00:49:27,450 --> 00:49:29,430
you could buy into this and if you're
1094
00:49:29,430 --> 00:49:31,140
really nimble, and I'm not suggesting
1095
00:49:31,170 --> 00:49:34,440
you try to be, but one could do what
1096
00:49:34,440 --> 00:49:36,420
I've done very little of in my trading
1097
00:49:36,420 --> 00:49:38,070
history, but I knew a few guys that are
1098
00:49:38,070 --> 00:49:40,530
very nimble like this, they'll buy this
1099
00:49:40,530 --> 00:49:42,510
then go short on a reversal and then
1100
00:49:42,510 --> 00:49:44,730
ride the other way down. I'm not that
1101
00:49:44,730 --> 00:49:46,740
good. I'm not claiming to be that good,
1102
00:49:46,740 --> 00:49:49,860
but I have seen it done. A couple years
1103
00:49:49,860 --> 00:49:53,280
ago, I was on a website forum shared a
1104
00:49:53,310 --> 00:49:56,610
live example of me doing that very thing
1105
00:49:56,670 --> 00:50:00,510
and a reversal in a time Kinda like
1106
00:50:00,510 --> 00:50:01,620
excited a lot of folks that were
1107
00:50:01,620 --> 00:50:04,050
actually watching it live. But I can
1108
00:50:04,050 --> 00:50:05,250
assure you, that doesn't happen all the
1109
00:50:05,250 --> 00:50:07,080
time. And I just happen to be lucky on
1110
00:50:07,080 --> 00:50:09,420
this one few rare instances where
1111
00:50:10,440 --> 00:50:13,800
witnesses were, were present. So here's
1112
00:50:13,800 --> 00:50:15,600
an opportunity to be a seller here, and
1113
00:50:16,620 --> 00:50:18,780
that was on a Wednesday, okay, and we
1114
00:50:18,810 --> 00:50:21,180
looking for the market move lower into
1115
00:50:21,900 --> 00:50:25,320
Friday, because the overall bears tone
1116
00:50:25,830 --> 00:50:29,550
sets that that stage up, we have a
1117
00:50:29,550 --> 00:50:31,410
resistance level here, prices unable to
1118
00:50:31,410 --> 00:50:33,960
go higher. Okay, trades lower, and it
1119
00:50:33,960 --> 00:50:35,310
starts to rally up. So what would you
1120
00:50:35,310 --> 00:50:37,290
think would be here, if you pull your
1121
00:50:37,290 --> 00:50:39,690
fib, you got to use this high not here,
1122
00:50:40,140 --> 00:50:42,300
use the highest high round that level.
1123
00:50:42,600 --> 00:50:46,320
So here's a high and again, we're really
1124
00:50:46,770 --> 00:50:48,810
splitting hairs with this in terms of
1125
00:50:48,840 --> 00:50:51,150
the five minute chart, but you can see
1126
00:50:51,150 --> 00:50:55,890
that it does give some quality setups
1127
00:50:55,890 --> 00:50:57,420
and again, if you look at this, this is
1128
00:50:57,420 --> 00:50:59,220
your optimal trade entry and you'll have
1129
00:50:59,220 --> 00:51:00,690
to zoom in on your own Because I'm not
1130
00:51:00,690 --> 00:51:03,000
going to do that here. I guess if I
1131
00:51:03,000 --> 00:51:04,560
moved out this way a little bit, you'll
1132
00:51:04,560 --> 00:51:05,520
see it a little bit better.
1133
00:51:06,870 --> 00:51:11,640
Yeah 60 to 70 and a half and 79% is the
1134
00:51:11,640 --> 00:51:14,070
actual height of the candle. And that
1135
00:51:14,070 --> 00:51:17,850
happens to be around the asian session.
1136
00:51:18,360 --> 00:51:20,160
So you could actually call very nice
1137
00:51:20,160 --> 00:51:21,420
move in the asian session, which we're
1138
00:51:21,420 --> 00:51:22,890
not gonna be talking too much about in
1139
00:51:22,890 --> 00:51:26,220
this video series. really rely more on
1140
00:51:26,220 --> 00:51:28,800
the London opening new york open
1141
00:51:29,850 --> 00:51:30,480
sessions.
1142
00:51:31,620 --> 00:51:37,020
We have a high here it 840 GMT and
1143
00:51:37,020 --> 00:51:41,460
another high here at 1220. So we have a
1144
00:51:41,970 --> 00:51:45,000
London open swing high and we have a new
1145
00:51:45,000 --> 00:51:47,010
york open swing high and the overall
1146
00:51:47,010 --> 00:51:50,070
bearishness is again focused on because
1147
00:51:50,070 --> 00:51:53,760
it's higher timeframe. Any rallies you
1148
00:51:53,760 --> 00:51:56,880
look to sell so here's a high to a low
1149
00:52:00,360 --> 00:52:02,190
Put that on that low where it belongs.
1150
00:52:03,390 --> 00:52:09,750
And price trades right up into the sweet
1151
00:52:09,750 --> 00:52:12,960
spot which is confirmed confluence of
1152
00:52:13,350 --> 00:52:15,390
factors here we have a higher level
1153
00:52:15,390 --> 00:52:17,460
timeframe support resistance level, that
1154
00:52:17,460 --> 00:52:20,760
132 67 level ish, you can go around, you
1155
00:52:20,760 --> 00:52:24,420
can round that to 132 70 or 132 60 small
1156
00:52:24,420 --> 00:52:27,480
round number and time of day that occurs
1157
00:52:27,480 --> 00:52:31,140
it's 1215 and that's the New York open
1158
00:52:31,470 --> 00:52:32,940
and then price moves lower,
1159
00:52:33,300 --> 00:52:34,170
respectively.
1160
00:52:35,880 --> 00:52:36,750
Then we have
1161
00:52:39,630 --> 00:52:43,410
again, price trading at this 132 39.
1162
00:52:43,410 --> 00:52:45,870
Well, it's called 139. I'm sorry, 130 to
1163
00:52:45,870 --> 00:52:48,930
440 level it was round to a nice round
1164
00:52:48,930 --> 00:52:51,540
number. We have this range here trading
1165
00:52:51,540 --> 00:52:53,550
off of this resistance down to this
1166
00:52:53,550 --> 00:52:54,570
resistance and then there's a
1167
00:52:54,570 --> 00:52:59,310
retracement. Okay and pulling that
1168
00:53:00,930 --> 00:53:01,680
range
1169
00:53:09,179 --> 00:53:13,829
make sure we get our candles. Okay we
1170
00:53:13,829 --> 00:53:16,649
have in here we have Asia, making the
1171
00:53:16,649 --> 00:53:20,819
high the actual high formed on 130 GMT.
1172
00:53:22,229 --> 00:53:26,849
This candle here is the 910 GMT it's new
1173
00:53:26,879 --> 00:53:30,869
I'm sorry London open price breaks down
1174
00:53:32,099 --> 00:53:34,979
a couple different little micro rallies
1175
00:53:34,979 --> 00:53:36,359
in here and then finally gave up the
1176
00:53:36,359 --> 00:53:39,749
ghost at 1230 GMT which is New York open
1177
00:53:40,199 --> 00:53:43,769
again trading right up into that 132 39
1178
00:53:43,769 --> 00:53:46,559
or 130 to 40 level and then really fell
1179
00:53:46,559 --> 00:53:51,569
out of bed and again here trading in the
1180
00:53:51,569 --> 00:53:54,119
same direction intraday we have this
1181
00:53:54,119 --> 00:53:56,519
resistance broken, I'm sorry support
1182
00:53:56,519 --> 00:53:58,979
broken now resistance and this small
1183
00:53:58,979 --> 00:54:00,629
little range if you looked at that Hi in
1184
00:54:00,629 --> 00:54:02,249
the low of that you'll get another small
1185
00:54:02,249 --> 00:54:05,549
little retracement for a London close
1186
00:54:06,569 --> 00:54:09,029
continuation pattern going into the low
1187
00:54:09,089 --> 00:54:09,689
of the day.
1188
00:54:12,090 --> 00:54:12,690
We have
1189
00:54:22,380 --> 00:54:25,170
the high here in Asia previous day's
1190
00:54:25,170 --> 00:54:30,210
high and low. Okay price comes down
1191
00:54:30,390 --> 00:54:32,640
rallies up into the 62% retracement
1192
00:54:32,640 --> 00:54:36,450
level here and it's confirmed by this
1193
00:54:36,450 --> 00:54:40,800
same 30 to 20 level which is nice levels
1194
00:54:40,800 --> 00:54:43,650
30 to 20 inch institutional level we
1195
00:54:43,650 --> 00:54:46,680
like to watch the 20 levels and an old
1196
00:54:46,680 --> 00:54:50,970
low okay and on this candle here that is
1197
00:54:52,050 --> 00:54:57,300
1040 GMT and then we have 945 GMT and we
1198
00:54:57,300 --> 00:55:00,810
have seven GMT so All during the
1199
00:55:00,810 --> 00:55:04,230
European and London session we have
1200
00:55:04,470 --> 00:55:06,240
several opportunities to be a seller
1201
00:55:07,020 --> 00:55:12,030
into old lows broken now resistance and
1202
00:55:12,120 --> 00:55:15,240
market moves lower where would be
1203
00:55:15,240 --> 00:55:16,890
reasonably expected to see reach for
1204
00:55:16,890 --> 00:55:18,750
this old low again we're looking for
1205
00:55:19,050 --> 00:55:21,630
support resistance levels to aim and
1206
00:55:21,630 --> 00:55:27,060
look for new targets again same scenario
1207
00:55:27,060 --> 00:55:33,930
here Okay, markets moving lower here's a
1208
00:55:33,960 --> 00:55:36,000
opportunity you could use keying off of
1209
00:55:36,000 --> 00:55:40,440
that 131 90 level was around that to a
1210
00:55:41,460 --> 00:55:44,730
small round number for from this high to
1211
00:55:44,730 --> 00:55:46,740
that low you'll get a nice
1212
00:55:48,090 --> 00:55:48,960
retracement
1213
00:55:53,190 --> 00:55:55,260
Okay, that's a sweet spot and sell off.
1214
00:55:55,530 --> 00:55:59,160
And here. Same thing could use for
1215
00:55:59,520 --> 00:56:00,960
continuation in the same direction
1216
00:56:00,960 --> 00:56:04,410
intraday, she used the fib on that for
1217
00:56:04,410 --> 00:56:05,670
the New York open
1218
00:56:14,309 --> 00:56:16,379
you get right up in that sweet spot and
1219
00:56:16,379 --> 00:56:17,789
optimal trade entry and trade lower
1220
00:56:17,789 --> 00:56:22,469
intraday now that's if you are a day
1221
00:56:22,469 --> 00:56:26,189
trader. Okay and there's 45 pips or so
1222
00:56:26,249 --> 00:56:28,919
yeah, lay your feet using that as an
1223
00:56:28,919 --> 00:56:32,939
example. Eventually, the market bounces
1224
00:56:32,939 --> 00:56:37,919
and trades up into a previous range. Now
1225
00:56:37,919 --> 00:56:39,599
we're right, we're trading right into
1226
00:56:39,629 --> 00:56:41,999
these resistance levels. But to see this
1227
00:56:41,999 --> 00:56:46,709
high here, this low and here's Lake one,
1228
00:56:47,609 --> 00:56:48,419
and Lake two.
1229
00:56:49,860 --> 00:56:50,970
If we use the high
1230
00:56:53,010 --> 00:56:55,320
down to that low, again, we're looking
1231
00:56:55,320 --> 00:56:57,930
at market swings. The markets trading
1232
00:56:57,930 --> 00:56:59,310
into the optimal trade entry just fell
1233
00:56:59,310 --> 00:57:00,960
short this week. spot which actually
1234
00:57:00,960 --> 00:57:03,360
comes right on top of that 30 to 20
1235
00:57:03,360 --> 00:57:05,040
level, which is nice. I like seeing
1236
00:57:05,040 --> 00:57:08,400
stuff like that. There's where you got
1237
00:57:09,030 --> 00:57:11,610
your setup. So I kind of gave you your
1238
00:57:11,610 --> 00:57:14,010
answer for your homework. Didn't mean to
1239
00:57:14,010 --> 00:57:15,540
do that but sometimes that'll happen
1240
00:57:15,540 --> 00:57:19,260
guys. And there's your your retracement
1241
00:57:19,260 --> 00:57:22,350
back into going into Friday. Okay, so
1242
00:57:22,350 --> 00:57:24,510
that's what has happened since the last
1243
00:57:24,510 --> 00:57:27,330
time we did our episode two in the
1244
00:57:27,330 --> 00:57:30,060
series, and how the reactions and price
1245
00:57:30,060 --> 00:57:32,700
levels are laid at your feet they were
1246
00:57:32,700 --> 00:57:34,680
in advance given to you how to find
1247
00:57:34,680 --> 00:57:37,500
them. What was new to trade direction
1248
00:57:37,590 --> 00:57:41,010
and how you look for setups, okay. This
1249
00:57:41,010 --> 00:57:43,320
is what you do, you go through looking
1250
00:57:43,320 --> 00:57:44,730
for support resistance levels and you
1251
00:57:44,730 --> 00:57:47,400
only take opportunities when price gets
1252
00:57:47,400 --> 00:57:48,660
to those levels and you look for price
1253
00:57:48,660 --> 00:57:51,210
patterns around that same higher level
1254
00:57:51,210 --> 00:57:52,800
timeframe support resistance, okay.
1255
00:57:53,160 --> 00:57:55,230
Notice we did not put any five minutes
1256
00:57:55,230 --> 00:57:57,060
for resistance levels. We do not put in
1257
00:57:57,060 --> 00:57:59,100
any 15 minutes support levels. We didn't
1258
00:57:59,100 --> 00:58:00,720
put an hourly support resistance level,
1259
00:58:01,110 --> 00:58:02,940
we only use the daily in the four hour,
1260
00:58:02,940 --> 00:58:04,860
the higher timeframe. Those are your
1261
00:58:04,860 --> 00:58:06,150
timeframes where the institutional
1262
00:58:06,150 --> 00:58:07,920
sponsorship is going to come in. Okay,
1263
00:58:07,920 --> 00:58:09,780
so hopefully, this has been insightful
1264
00:58:09,780 --> 00:58:13,890
to you. Again, apply the tools in a demo
1265
00:58:13,890 --> 00:58:15,240
account setting and build your
1266
00:58:15,240 --> 00:58:17,100
confidence and you determine when it's
1267
00:58:17,100 --> 00:58:25,410
safe for you to use live funds. Okay, we
1268
00:58:25,410 --> 00:58:29,370
are looking at a 10 year, t note daily
1269
00:58:29,370 --> 00:58:31,080
chart. Okay. And I'm sure you're
1270
00:58:31,080 --> 00:58:32,640
probably asking yourself, okay, well,
1271
00:58:32,670 --> 00:58:34,470
when did we enter the commodity realm?
1272
00:58:35,340 --> 00:58:37,680
Well, I started as a commodity trader.
1273
00:58:38,100 --> 00:58:41,520
And I learned from Larry Williams, one
1274
00:58:41,520 --> 00:58:45,000
of my first mentors, that the interest
1275
00:58:45,000 --> 00:58:46,950
rate market was basically the market
1276
00:58:46,950 --> 00:58:49,410
that controlled just about every market
1277
00:58:49,410 --> 00:58:51,870
asset class there is. Interest rates are
1278
00:58:51,870 --> 00:58:53,100
the driving force, whether you're a
1279
00:58:53,100 --> 00:58:54,750
stock trader, whether you're a commodity
1280
00:58:54,750 --> 00:58:57,630
trader, Currency Trader oil trader, it
1281
00:58:57,630 --> 00:58:59,700
doesn't matter what it is interest
1282
00:58:59,700 --> 00:59:02,940
rates. Are the absolute underpinning of
1283
00:59:02,940 --> 00:59:05,670
market dynamic moves up or down, it's
1284
00:59:05,670 --> 00:59:08,370
going to be more or less, it's going to
1285
00:59:08,370 --> 00:59:10,800
be propelled by the interest rate
1286
00:59:10,800 --> 00:59:16,260
market. Now, when we look at 1010 year t
1287
00:59:16,260 --> 00:59:20,010
notes, there's one small little extra I
1288
00:59:20,010 --> 00:59:21,600
want to throw in here, I'm not breaking
1289
00:59:21,600 --> 00:59:23,370
down my entire bond market analysis
1290
00:59:23,370 --> 00:59:25,860
concept. It would be I could spend eight
1291
00:59:25,860 --> 00:59:29,430
series times eight videos, I mean, 64
1292
00:59:29,430 --> 00:59:30,720
videos and still not scratched the
1293
00:59:30,720 --> 00:59:33,840
surface on the elements of interest
1294
00:59:33,840 --> 00:59:36,600
rates and how one could utilize those in
1295
00:59:36,720 --> 00:59:38,880
trading. But I'm gonna give you a real
1296
00:59:38,880 --> 00:59:41,940
simple basic framework where I'm sure it
1297
00:59:41,940 --> 00:59:43,350
will take a lot of ambiguity out of the
1298
00:59:43,350 --> 00:59:46,020
marketplace and for you as an analyst in
1299
00:59:46,020 --> 00:59:48,030
your trading, and be able to use it in a
1300
00:59:48,030 --> 00:59:50,160
real world environment because I'm
1301
00:59:50,160 --> 00:59:52,020
trying to avoid giving you information
1302
00:59:52,020 --> 00:59:53,850
overload I'm just giving you small
1303
00:59:53,880 --> 00:59:56,490
components that will very easily and
1304
00:59:56,790 --> 01:00:00,570
neatly fit together and it allow you to
1305
01:00:00,570 --> 01:00:02,490
have a better understanding of the macro
1306
01:00:02,670 --> 01:00:05,310
economic perspective that was essential
1307
01:00:05,310 --> 01:00:06,600
whether you're a short term trader,
1308
01:00:06,840 --> 01:00:10,710
swing trader or even day trader we're
1309
01:00:10,710 --> 01:00:12,990
gonna be looking at the interest rate
1310
01:00:13,080 --> 01:00:16,410
yields. Now these are specifically going
1311
01:00:16,410 --> 01:00:18,900
to be, you know, the 10 year mark now
1312
01:00:18,930 --> 01:00:21,960
they can be shorter and longer term. But
1313
01:00:21,960 --> 01:00:24,540
for FX purposes, the 10 year will be
1314
01:00:24,870 --> 01:00:27,600
sufficient. So let's take a look at a
1315
01:00:27,600 --> 01:00:30,090
few examples on how we can draw this
1316
01:00:30,090 --> 01:00:31,710
information from the internet for free
1317
01:00:32,010 --> 01:00:33,180
with no cost to you.
1318
01:00:40,560 --> 01:00:42,660
Okay, guys, we're going to look at some
1319
01:00:42,750 --> 01:00:46,980
concepts utilizing the T note 10 year
1320
01:00:47,640 --> 01:00:48,900
and we're gonna be looking at some
1321
01:00:48,900 --> 01:00:51,810
interest rate concepts. I want to give
1322
01:00:51,810 --> 01:00:54,030
you some free resources that you can do
1323
01:00:54,030 --> 01:00:56,100
this with won't cost you a dime except
1324
01:00:56,100 --> 01:00:58,080
for your internet connection. Alright,
1325
01:00:58,380 --> 01:01:04,470
just do a google Go to bar chart. Okay,
1326
01:01:04,470 --> 01:01:06,870
and you'll see bar chart.com. Okay,
1327
01:01:06,870 --> 01:01:07,860
that's what you want, you want to click
1328
01:01:07,860 --> 01:01:10,980
on that. Okay, when bar chart opens up
1329
01:01:10,980 --> 01:01:12,540
like this, what you can do is you can
1330
01:01:12,540 --> 01:01:14,100
look over here, and it's gonna say
1331
01:01:14,100 --> 01:01:16,410
select the commodity, hit that little
1332
01:01:16,410 --> 01:01:18,870
toggle window down, and you're gonna
1333
01:01:18,870 --> 01:01:22,620
scroll down to the financial section
1334
01:01:22,620 --> 01:01:24,660
here and you'll see 10 year t note,
1335
01:01:25,320 --> 01:01:27,270
click on that, and it'll give you a few
1336
01:01:27,270 --> 01:01:29,940
choices of contract month. Just use the
1337
01:01:29,940 --> 01:01:34,890
highest month here, okay? And this case
1338
01:01:34,890 --> 01:01:37,920
is September. Okay, when this window
1339
01:01:37,920 --> 01:01:39,900
opens up, I'm gonna go over here to
1340
01:01:39,930 --> 01:01:41,940
customize chart, click on that.
1341
01:01:47,190 --> 01:01:48,660
Okay, and what we're going to do is
1342
01:01:48,720 --> 01:01:50,220
we're going to scroll down a little bit
1343
01:01:50,220 --> 01:01:51,840
and we're going to do some changes to
1344
01:01:51,840 --> 01:01:54,750
this. And what we want to do is you want
1345
01:01:54,750 --> 01:02:01,890
to be looking at data nearest, click on
1346
01:02:01,890 --> 01:02:03,900
that. And the reason why we want that is
1347
01:02:03,900 --> 01:02:05,700
because it's going to show continuous
1348
01:02:06,840 --> 01:02:10,620
non break in, in the contract. As you
1349
01:02:10,620 --> 01:02:13,050
can see here, if I scroll up, you'll see
1350
01:02:13,050 --> 01:02:15,960
these little spots on the chart here.
1351
01:02:16,500 --> 01:02:20,400
Okay? You'll see an absence of that by
1352
01:02:20,400 --> 01:02:22,950
using that type of chart. And we're
1353
01:02:22,950 --> 01:02:25,500
going to go to candlestick right to take
1354
01:02:25,500 --> 01:02:28,050
all the volume off. It's not essential
1355
01:02:28,050 --> 01:02:32,550
for that here. Okay, and we want to see
1356
01:02:32,550 --> 01:02:34,470
at least a year's worth.
1357
01:02:35,850 --> 01:02:36,840
And we're gonna click draw.
1358
01:02:41,580 --> 01:02:44,910
Okay and what we have here is a daily
1359
01:02:45,180 --> 01:02:48,570
chart of the 10 year t note. Okay. And
1360
01:02:49,230 --> 01:02:52,710
what I want to show you is there are
1361
01:02:53,490 --> 01:02:56,610
means of discerning where the higher
1362
01:02:56,640 --> 01:03:01,050
level tide, okay? Okay. think in terms
1363
01:03:01,080 --> 01:03:05,400
of your a salmon, okay, generally as a
1364
01:03:05,400 --> 01:03:07,380
new trader your salmon, you, you want to
1365
01:03:07,380 --> 01:03:10,440
swim against the current because if the
1366
01:03:10,440 --> 01:03:13,080
market is going down, okay, it's
1367
01:03:13,080 --> 01:03:14,790
probably not going to keep going down,
1368
01:03:14,850 --> 01:03:16,770
okay? It's going to go up eventually,
1369
01:03:17,100 --> 01:03:19,050
things, you know, chant tend to be
1370
01:03:19,050 --> 01:03:21,750
contrarian as a new trader. So you want
1371
01:03:21,750 --> 01:03:23,400
to fight against that tide. Well I can
1372
01:03:23,400 --> 01:03:26,160
tell you as a salmon, you the outcome of
1373
01:03:26,160 --> 01:03:27,780
that is they have fun when you get to
1374
01:03:27,780 --> 01:03:30,210
the top, okay? When they're right and
1375
01:03:30,210 --> 01:03:32,130
you survive it, but they eventually once
1376
01:03:32,130 --> 01:03:35,460
that's done, and they they completed
1377
01:03:35,460 --> 01:03:37,500
their task by getting there, they all
1378
01:03:37,500 --> 01:03:39,390
die. A lot of people don't realize that
1379
01:03:39,390 --> 01:03:40,830
but the salmon dies when it gets there.
1380
01:03:40,830 --> 01:03:45,330
So do you want to be the salmon? Okay,
1381
01:03:45,360 --> 01:03:48,870
do you want to swim with the tide? Okay,
1382
01:03:48,870 --> 01:03:52,050
and it's a kind of silly expression or
1383
01:03:52,080 --> 01:03:54,990
example or analogy, but it really
1384
01:03:55,080 --> 01:03:57,540
communicates the necessity of doing
1385
01:03:57,540 --> 01:04:00,330
things the easy way. Okay. Don't
1386
01:04:00,360 --> 01:04:02,580
overcomplicate, don't overcomplicate
1387
01:04:02,580 --> 01:04:05,580
things, and the surest way to start that
1388
01:04:06,000 --> 01:04:08,520
way of thinking as a trader is, where's
1389
01:04:08,520 --> 01:04:11,190
the money flowing from? Is it flowing
1390
01:04:11,190 --> 01:04:15,210
into or out of currencies? Okay. And the
1391
01:04:15,210 --> 01:04:16,920
essential question is, is how does one
1392
01:04:17,310 --> 01:04:20,670
arrive at that answer? Well, you have to
1393
01:04:20,670 --> 01:04:23,100
look at a macro perspective, okay? And
1394
01:04:23,100 --> 01:04:25,260
the way we look at it macro perspective
1395
01:04:25,260 --> 01:04:27,060
is the interest rate market. Now, the
1396
01:04:27,060 --> 01:04:29,430
interest rate markets are the absolute
1397
01:04:29,880 --> 01:04:35,670
center focal point of all economic asset
1398
01:04:35,670 --> 01:04:37,170
classes, whether it'd be stocks,
1399
01:04:37,200 --> 01:04:40,650
commodities, you know, currencies, it
1400
01:04:40,650 --> 01:04:42,510
doesn't matter. The interest rate
1401
01:04:42,510 --> 01:04:43,950
markets would drive rates and moves
1402
01:04:43,950 --> 01:04:45,570
everything around. You can argue with me
1403
01:04:45,570 --> 01:04:46,860
all you want, but I'm gonna tell you,
1404
01:04:46,860 --> 01:04:50,400
that's the case. Okay. So if we
1405
01:04:50,400 --> 01:04:52,140
understand the interest rate market, we
1406
01:04:52,140 --> 01:04:54,930
have everything laid out our feet, we
1407
01:04:54,930 --> 01:04:59,220
have the keys to everything you would
1408
01:04:59,220 --> 01:05:01,590
ever want. The kingdom, okay, so if you
1409
01:05:01,590 --> 01:05:04,650
understand this, you'll understand
1410
01:05:04,680 --> 01:05:06,090
everything you'll need to know on a
1411
01:05:06,090 --> 01:05:07,830
higher time frame premise. Okay?
1412
01:05:08,340 --> 01:05:08,790
So now,
1413
01:05:09,809 --> 01:05:12,479
I'm not going to go into all of my bond
1414
01:05:12,479 --> 01:05:14,189
work. Okay, so we're just going to look
1415
01:05:14,189 --> 01:05:15,839
at just the 10 year t note that's going
1416
01:05:15,839 --> 01:05:17,579
to be sufficient for this teaching
1417
01:05:17,579 --> 01:05:20,429
series. But I promise you, there are so
1418
01:05:20,429 --> 01:05:22,769
many levels deeper that you can go into.
1419
01:05:22,979 --> 01:05:25,979
And it's really not taught anywhere on
1420
01:05:25,979 --> 01:05:28,829
the internet. My bond work is absolutely
1421
01:05:28,829 --> 01:05:31,439
unique. And I'm going to blow my horn,
1422
01:05:31,469 --> 01:05:33,029
there's nothing like it out there. So
1423
01:05:33,659 --> 01:05:35,639
I've given a few little things about it
1424
01:05:35,639 --> 01:05:37,619
in the past, but I mean, there's so much
1425
01:05:37,619 --> 01:05:41,219
more to it that helps discern what the
1426
01:05:41,249 --> 01:05:42,749
interest rate markets are doing on an
1427
01:05:42,749 --> 01:05:45,029
intraday basis on a week to week basis
1428
01:05:45,059 --> 01:05:47,459
on a daily if it's going to be up or
1429
01:05:47,459 --> 01:05:49,559
down day. There's ways of looking at
1430
01:05:49,559 --> 01:05:52,289
that seasonally, and man it's it's
1431
01:05:52,289 --> 01:05:56,789
crazy, how you rhythmic this interest
1432
01:05:56,789 --> 01:05:59,999
rate market is now with that
1433
01:05:59,999 --> 01:06:02,429
Understanding okay if we
1434
01:06:02,550 --> 01:06:05,310
look at a 10 year t note market, this is
1435
01:06:05,310 --> 01:06:07,980
a chart of a daily futures contract of
1436
01:06:08,160 --> 01:06:13,320
the 10 year t note. If we see price, in
1437
01:06:13,320 --> 01:06:16,980
this case, trade lower here. Okay. What
1438
01:06:16,980 --> 01:06:19,650
is that telling us? Well, there is an
1439
01:06:19,650 --> 01:06:22,110
inverse relationship between the futures
1440
01:06:22,110 --> 01:06:25,050
contract and the actual bond yield.
1441
01:06:25,230 --> 01:06:28,050
Okay. The yield at the 10 year note is
1442
01:06:29,760 --> 01:06:32,490
yielding is actually in this case here,
1443
01:06:32,700 --> 01:06:36,630
it's going up. Okay. When the T note
1444
01:06:36,750 --> 01:06:39,270
futures contract is rallying as it does
1445
01:06:39,270 --> 01:06:43,500
here, the yield would be declining. Vice
1446
01:06:43,500 --> 01:06:46,050
versa when we see the futures contract
1447
01:06:46,050 --> 01:06:49,080
from the 10 year note trading lower that
1448
01:06:49,080 --> 01:06:51,750
means that the yield is going higher
1449
01:06:52,410 --> 01:06:55,620
when the 10 year t note is trading
1450
01:06:55,620 --> 01:06:58,830
higher here. That means the bond yield
1451
01:06:58,830 --> 01:07:02,010
for that 10 year note going lower, then
1452
01:07:02,010 --> 01:07:05,730
we have a drop lower and sustain move
1453
01:07:05,760 --> 01:07:08,220
lower, that means there's a stain move
1454
01:07:08,340 --> 01:07:11,280
higher in the bond yield. Now, that's
1455
01:07:11,280 --> 01:07:12,840
all fine and great. But what does that
1456
01:07:12,840 --> 01:07:15,900
really mean? Well, it means this if you
1457
01:07:15,900 --> 01:07:18,780
want to be a buyer of currencies, and
1458
01:07:18,780 --> 01:07:21,060
we're going to stick to our equation of
1459
01:07:21,060 --> 01:07:23,760
being the fiber or your resting, okay,
1460
01:07:23,760 --> 01:07:25,560
so this teaching series is focused on
1461
01:07:26,280 --> 01:07:28,830
it's really goes along with the other
1462
01:07:28,830 --> 01:07:30,240
majors too, but we're just going to use
1463
01:07:30,240 --> 01:07:33,930
the euro. If the 10 year t note is
1464
01:07:33,930 --> 01:07:36,660
trading lower, like this, that means
1465
01:07:36,660 --> 01:07:38,250
that the bond yield is going higher
1466
01:07:39,360 --> 01:07:42,360
currencies are going to be chasing
1467
01:07:42,480 --> 01:07:45,390
higher yield. So what does that mean? As
1468
01:07:45,390 --> 01:07:47,610
the yields go up, as we're going to see
1469
01:07:47,610 --> 01:07:48,810
in another chart and how you can get
1470
01:07:48,810 --> 01:07:51,210
that information as well, as the yields
1471
01:07:51,240 --> 01:07:53,250
are going higher, the currencies are
1472
01:07:53,250 --> 01:07:55,470
going to chase that. Okay, and that
1473
01:07:55,470 --> 01:07:57,840
means they're gonna chase yield. What
1474
01:07:57,840 --> 01:07:57,930
does
1475
01:07:57,930 --> 01:07:58,440
that mean?
1476
01:07:58,710 --> 01:08:00,720
That means while the 10 Your note is
1477
01:08:00,720 --> 01:08:04,200
trading lower, you want to be a buyer of
1478
01:08:04,200 --> 01:08:10,830
currencies Okay, now take a big step
1479
01:08:10,830 --> 01:08:13,890
back now go back to this price action
1480
01:08:13,890 --> 01:08:19,050
here. If we see price trade lower and
1481
01:08:19,050 --> 01:08:22,470
then rally up into a level of old
1482
01:08:23,070 --> 01:08:25,800
support broken here is resistance keep
1483
01:08:25,800 --> 01:08:27,600
on going over here now this is now
1484
01:08:27,600 --> 01:08:30,690
resistance right if you look at the high
1485
01:08:30,810 --> 01:08:32,310
down to the low we've essentially
1486
01:08:32,310 --> 01:08:35,130
retrace back to will be considered a
1487
01:08:35,490 --> 01:08:37,380
deep enough optimal trade entry. I'm not
1488
01:08:37,380 --> 01:08:38,550
gonna put the fibs on here and you can
1489
01:08:38,550 --> 01:08:40,500
do that you got to subscribe. I'm not
1490
01:08:40,500 --> 01:08:43,230
going to key in my my information for
1491
01:08:43,290 --> 01:08:45,330
bar chart calm, but you can set up an
1492
01:08:45,330 --> 01:08:47,100
account with these this website. It's
1493
01:08:47,100 --> 01:08:49,350
free, absolutely free does not do
1494
01:08:49,350 --> 01:08:51,990
anything but require you to have a email
1495
01:08:51,990 --> 01:08:54,210
address. Okay, and my advice is to
1496
01:08:54,210 --> 01:08:56,640
create an online email address that you
1497
01:08:56,640 --> 01:09:00,480
use for all of your your trading related
1498
01:09:00,480 --> 01:09:02,760
things, and that way, everything that
1499
01:09:02,760 --> 01:09:04,680
gets spammed because you eventually will
1500
01:09:04,680 --> 01:09:05,880
get spammed, I'm going to tell you that
1501
01:09:05,880 --> 01:09:09,030
I have gotten I should say I've gotten
1502
01:09:09,030 --> 01:09:13,830
I've received rather some spam ever
1503
01:09:13,830 --> 01:09:15,420
since I've signed up to this service,
1504
01:09:15,420 --> 01:09:17,970
but that's a small consolation. And in
1505
01:09:17,970 --> 01:09:19,830
terms of accessing free commodity charts
1506
01:09:19,830 --> 01:09:23,130
that I like, this is certainly one way
1507
01:09:23,130 --> 01:09:26,070
of doing it. So I don't work with the
1508
01:09:26,070 --> 01:09:28,200
email address, you know, ICT at initial
1509
01:09:28,200 --> 01:09:31,680
trade comm or my inner circle trader
1510
01:09:31,680 --> 01:09:36,420
gmail account. I use the completely
1511
01:09:36,420 --> 01:09:40,350
alien means of signing on to this, this
1512
01:09:40,350 --> 01:09:41,730
website and a few other ones that I like
1513
01:09:41,730 --> 01:09:45,300
to use. But as price rate rallies up
1514
01:09:45,300 --> 01:09:47,430
into this area here, we have an old
1515
01:09:47,430 --> 01:09:50,250
level of resistance, which is support
1516
01:09:50,250 --> 01:09:51,930
here. Okay, we could expect to see
1517
01:09:51,930 --> 01:09:54,030
prices trade lower. Now what if we could
1518
01:09:54,030 --> 01:09:57,480
have an X ray view? Okay, imagine if you
1519
01:09:57,480 --> 01:10:00,120
had an X ray machine or X ray memory. A
1520
01:10:00,120 --> 01:10:01,590
kid and maybe you guys in the states
1521
01:10:01,590 --> 01:10:04,290
know this grown up as kid they had these
1522
01:10:04,290 --> 01:10:06,060
little things in the back of a comic
1523
01:10:06,060 --> 01:10:08,670
book where it had X ray glasses. Okay,
1524
01:10:08,670 --> 01:10:10,410
and of course, I was a sucker and I
1525
01:10:10,410 --> 01:10:12,780
spent my dollar 25. Alliance and sent it
1526
01:10:12,780 --> 01:10:14,520
in here. And I bought myself a pair of
1527
01:10:14,520 --> 01:10:16,830
them and I opened it up. It was
1528
01:10:16,830 --> 01:10:19,110
ridiculous. It was just an optical
1529
01:10:19,110 --> 01:10:20,250
illusion. It gives you the impression
1530
01:10:20,280 --> 01:10:21,960
you're seeing, you know, an X ray view.
1531
01:10:22,410 --> 01:10:22,800
But
1532
01:10:23,850 --> 01:10:24,840
there is a way
1533
01:10:25,080 --> 01:10:28,590
of looking at the market on interest
1534
01:10:28,590 --> 01:10:30,570
rates. Okay, so you can see where the
1535
01:10:30,570 --> 01:10:33,480
tide is changing and turning. Now we're
1536
01:10:33,480 --> 01:10:35,100
going to come back to this chart, but
1537
01:10:35,130 --> 01:10:37,950
for another free resource, we're going
1538
01:10:37,950 --> 01:10:38,670
to create
1539
01:10:41,490 --> 01:10:42,390
another tab.
1540
01:10:43,410 --> 01:10:48,390
Okay, and we're going to go to do a 10
1541
01:10:48,390 --> 01:10:48,810
year
1542
01:10:51,540 --> 01:10:52,320
bond,
1543
01:10:53,700 --> 01:10:55,650
yield chart.
1544
01:10:57,330 --> 01:10:58,560
Okay, when you click on that
1545
01:11:00,480 --> 01:11:03,150
You're gonna again look for in the list
1546
01:11:09,300 --> 01:11:12,390
us generic government 10 year yield
1547
01:11:12,570 --> 01:11:13,440
analysis.
1548
01:11:20,310 --> 01:11:22,950
Okay, let me see that is going to scroll
1549
01:11:22,950 --> 01:11:26,040
down a little bit. You want to go and go
1550
01:11:26,040 --> 01:11:27,870
to your chart here not a snapshot you
1551
01:11:27,870 --> 01:11:28,710
want to go to chart
1552
01:11:38,550 --> 01:11:39,750
okay and just
1553
01:11:39,780 --> 01:11:45,660
do a year. Okay, what we have here is
1554
01:11:45,930 --> 01:11:50,880
the fluctuations of the actual yield.
1555
01:11:51,180 --> 01:11:53,460
Okay out the 10 year Treasury market.
1556
01:11:54,270 --> 01:11:56,850
Now watch what happens. Let's go back to
1557
01:11:56,850 --> 01:12:02,970
that 10 year. Tino chart Price made a
1558
01:12:02,970 --> 01:12:05,400
high here in April and then going into
1559
01:12:05,400 --> 01:12:07,080
May we made a higher high, you see that?
1560
01:12:08,460 --> 01:12:10,530
Okay, then we made ultimate high in the
1561
01:12:10,800 --> 01:12:13,140
market and traded lower. Let's go and
1562
01:12:13,140 --> 01:12:16,950
you see a Converse relationship here in
1563
01:12:16,950 --> 01:12:21,540
the yield. Okay, here's that low and
1564
01:12:21,540 --> 01:12:25,110
then a lower, low in the yield. Again
1565
01:12:25,140 --> 01:12:27,840
thinking inversely here, okay, all we
1566
01:12:27,840 --> 01:12:30,840
did was have a mirror image of that
1567
01:12:30,870 --> 01:12:33,210
happening here. Okay. And then there's
1568
01:12:33,210 --> 01:12:36,630
been this rally up or sustained move in
1569
01:12:36,630 --> 01:12:39,270
the bond yield. So as the bond market
1570
01:12:40,440 --> 01:12:42,750
I'm sorry, the interest rate on the 10
1571
01:12:42,750 --> 01:12:45,180
year has been moving up, okay. That
1572
01:12:45,180 --> 01:12:47,100
means that the currency markets are
1573
01:12:47,100 --> 01:12:50,190
going to be looking to rally. Okay, that
1574
01:12:50,190 --> 01:12:51,420
means they're going to be looking to go
1575
01:12:51,420 --> 01:12:55,590
higher. So now as a higher level
1576
01:12:55,620 --> 01:12:58,590
timeframe, institutional sponsorship
1577
01:12:58,620 --> 01:13:00,930
minded trader Like, that's what we're
1578
01:13:00,930 --> 01:13:02,790
trying to cultivate in you right now.
1579
01:13:03,360 --> 01:13:06,540
You want to be focusing the majority of
1580
01:13:06,540 --> 01:13:08,760
your trading. Okay? Now, here's one of
1581
01:13:08,760 --> 01:13:12,450
those notepad moments when you want to
1582
01:13:12,450 --> 01:13:15,690
risk the maximum amount of leverage that
1583
01:13:15,690 --> 01:13:18,360
your personal risk appetite permits,
1584
01:13:18,390 --> 01:13:20,820
Okay, and let's put it out right now do
1585
01:13:20,820 --> 01:13:23,730
not risk more than the industry standard
1586
01:13:24,000 --> 01:13:27,450
2% per trade or maximum account exposure
1587
01:13:27,750 --> 01:13:30,270
at any one time. Okay? And we're going
1588
01:13:30,270 --> 01:13:32,640
to say that that's the case here. You
1589
01:13:32,640 --> 01:13:35,580
have the green light, go to be risking
1590
01:13:35,610 --> 01:13:38,040
2% or whatever your maximum is in your
1591
01:13:38,040 --> 01:13:40,440
demo account. Again, this is for
1592
01:13:40,680 --> 01:13:42,150
teaching purposes only and not giving
1593
01:13:42,150 --> 01:13:44,100
you trade advice. You have to discern
1594
01:13:44,100 --> 01:13:45,000
whether or not this is useful
1595
01:13:45,000 --> 01:13:47,130
information to you. And if you trade on
1596
01:13:47,130 --> 01:13:49,020
that with live funds, it's completely
1597
01:13:49,020 --> 01:13:51,240
100%. Your responsibility you collect
1598
01:13:51,240 --> 01:13:53,430
all the success and accolades. I don't
1599
01:13:53,430 --> 01:13:57,420
want none of it. Okay. So by looking at
1600
01:13:57,420 --> 01:13:59,820
this type of scenario, you could be
1601
01:14:00,000 --> 01:14:05,550
Maximum risk trader as a buyer, okay,
1602
01:14:05,670 --> 01:14:07,650
and what does that also mean for being a
1603
01:14:07,650 --> 01:14:08,580
short seller, if you're an intraday
1604
01:14:08,580 --> 01:14:11,940
trader don't risk maximum, okay? Because
1605
01:14:11,940 --> 01:14:14,700
the higher level timeframe tide is
1606
01:14:14,700 --> 01:14:16,620
poised to be moving higher, why? Because
1607
01:14:16,620 --> 01:14:18,510
the yields are going up and eventually,
1608
01:14:18,810 --> 01:14:20,370
the currencies you want to try to snap
1609
01:14:20,400 --> 01:14:23,130
up and chase after that yield. Okay, so
1610
01:14:23,130 --> 01:14:25,050
what does that mean? Well, let's look at
1611
01:14:25,110 --> 01:14:30,840
April and May time period in the euro.
1612
01:14:35,970 --> 01:14:37,860
Now, obviously, once you set these up,
1613
01:14:37,860 --> 01:14:39,390
once you open your charts up like this,
1614
01:14:39,630 --> 01:14:41,580
you're going to be wanting to save them
1615
01:14:42,480 --> 01:14:45,270
in your Favorites tab. Okay, I have one
1616
01:14:45,270 --> 01:14:47,730
for the euro for the bond. I'm sorry for
1617
01:14:47,730 --> 01:14:50,010
the British pound for the dollar index
1618
01:14:50,040 --> 01:14:52,440
and a half one for the 10 year t note.
1619
01:14:54,300 --> 01:14:57,270
Okay, here is a weekly, because that's
1620
01:14:57,270 --> 01:15:00,570
what I save. But we're gonna go down to
1621
01:15:00,570 --> 01:15:07,290
a daily nearest. And I was put nine
1622
01:15:07,290 --> 01:15:07,830
months of it.
1623
01:15:09,269 --> 01:15:10,049
And we're gonna draw
1624
01:15:10,860 --> 01:15:18,450
the chart. Okay, and I left the co2 data
1625
01:15:18,450 --> 01:15:23,010
on there. But yeah, you guys know me I'm
1626
01:15:23,010 --> 01:15:24,900
not about stuff like that I get it off
1627
01:15:26,010 --> 01:15:28,650
it'll distract me. Okay, so I just took
1628
01:15:28,650 --> 01:15:30,570
that off. And now what we're doing is
1629
01:15:31,020 --> 01:15:35,640
we're looking at the here's the APR. And
1630
01:15:35,640 --> 01:15:40,440
here's may timeframe where the Euro did
1631
01:15:40,440 --> 01:15:43,590
what? We made a low here, came down,
1632
01:15:43,980 --> 01:15:46,560
made a low, traded higher, came down in
1633
01:15:46,560 --> 01:15:50,010
July, ran out the lows here, but this
1634
01:15:50,010 --> 01:15:54,270
right here was suspect. Why? Because the
1635
01:15:54,270 --> 01:15:56,610
yields are going higher. Okay, so while
1636
01:15:56,610 --> 01:15:58,680
we did trade down to these levels, okay.
1637
01:15:59,400 --> 01:16:01,800
Those that Watching my market reviews,
1638
01:16:02,130 --> 01:16:05,610
okay, I discussed that the British Pound
1639
01:16:06,180 --> 01:16:09,390
was poised to move higher as well all in
1640
01:16:09,390 --> 01:16:12,510
the same time periods and that was the
1641
01:16:12,510 --> 01:16:13,860
case you can see it happening and
1642
01:16:13,860 --> 01:16:17,670
unfolding here. So we saw again, the
1643
01:16:17,790 --> 01:16:20,400
fiber, Euro USD pair traded Higher,
1644
01:16:20,400 --> 01:16:21,390
higher, higher, higher, higher, higher
1645
01:16:21,390 --> 01:16:23,340
and where to trade to an old high blow
1646
01:16:23,340 --> 01:16:25,710
it out just a little bit, but eventually
1647
01:16:25,710 --> 01:16:30,000
now we're trading counter Okay, what the
1648
01:16:30,240 --> 01:16:34,080
yield markets are suggesting, okay, so
1649
01:16:36,030 --> 01:16:37,920
we could retrace a little bit deeper and
1650
01:16:37,920 --> 01:16:40,020
try to trade up and fill this area here.
1651
01:16:40,290 --> 01:16:43,290
But bottom line is is ultimately these
1652
01:16:43,290 --> 01:16:45,960
are the types of moves. Okay, you want
1653
01:16:45,960 --> 01:16:48,990
to be participating in. Okay. Do you see
1654
01:16:48,990 --> 01:16:51,210
the majority or Lion's portion of the
1655
01:16:51,210 --> 01:16:53,730
market moves are happening on the higher
1656
01:16:54,090 --> 01:16:57,150
level timeframe being a buyer. Okay.
1657
01:16:57,420 --> 01:17:03,210
Very, very sustained, long. Basically,
1658
01:17:03,450 --> 01:17:05,010
you know, intermediate term swings are
1659
01:17:05,010 --> 01:17:07,020
on the upside. Okay? Now granted,
1660
01:17:07,050 --> 01:17:08,760
there's some profitability to be made
1661
01:17:08,820 --> 01:17:11,130
going short. There's nothing arguing
1662
01:17:11,130 --> 01:17:12,870
against that here. Okay? But we're
1663
01:17:12,870 --> 01:17:14,370
saying is, is if you want to be
1664
01:17:16,410 --> 01:17:19,500
directionally poised as a trader in only
1665
01:17:19,500 --> 01:17:21,390
focusing on institutional level
1666
01:17:21,900 --> 01:17:23,910
direction, okay, this is one way of
1667
01:17:23,910 --> 01:17:31,290
doing it. Okay. Let's look at the bond
1668
01:17:31,320 --> 01:17:35,430
yields chart again. Now, there is
1669
01:17:35,430 --> 01:17:38,760
another opportunity to look behind the
1670
01:17:38,760 --> 01:17:40,950
marketplace. Okay, we talked about this
1671
01:17:40,950 --> 01:17:44,850
x ray view concept. I'm going to go to
1672
01:17:45,000 --> 01:17:48,210
Google once again. And we're going to go
1673
01:17:48,210 --> 01:17:51,450
and look at the 10 year
1674
01:17:54,840 --> 01:17:55,530
German
1675
01:17:57,450 --> 01:17:58,260
bond
1676
01:17:59,280 --> 01:17:59,880
yield
1677
01:18:01,079 --> 01:18:02,189
Okay, when you see that
1678
01:18:03,750 --> 01:18:04,890
you're going to go to
1679
01:18:06,450 --> 01:18:07,560
Are we out here sorry,
1680
01:18:09,240 --> 01:18:11,160
German government bonds and here's it
1681
01:18:11,190 --> 01:18:14,910
here when you see GD p r 10. That's the
1682
01:18:14,910 --> 01:18:17,040
one we're looking for. Okay, all I'm
1683
01:18:17,040 --> 01:18:19,890
doing is opening that up so that way I
1684
01:18:19,890 --> 01:18:24,150
can cut and paste the symbol. If you
1685
01:18:24,150 --> 01:18:27,060
want to have an individual chart like
1686
01:18:27,060 --> 01:18:30,990
this, obviously you can do that. You can
1687
01:18:30,990 --> 01:18:35,400
see now we have this chart. Now this is
1688
01:18:35,400 --> 01:18:38,430
showing the 10 year rate of the German
1689
01:18:38,850 --> 01:18:40,680
bond yield for 10 year rate.
1690
01:18:43,650 --> 01:18:44,310
If you
1691
01:18:47,190 --> 01:18:48,630
every time you open up a new chart,
1692
01:18:48,870 --> 01:18:53,370
it'll give you your history. Okay. And
1693
01:18:54,390 --> 01:18:57,780
what I'm only I'm gonna just copy that
1694
01:19:00,630 --> 01:19:02,430
Cuz I don't trust myself to remember it
1695
01:19:03,240 --> 01:19:06,210
when I get on this page and you got to
1696
01:19:06,210 --> 01:19:10,530
type in colon ind. Okay and then what
1697
01:19:10,530 --> 01:19:13,500
that does is it compares the two. Okay,
1698
01:19:13,500 --> 01:19:16,920
so we have the Orange is the US 10 year
1699
01:19:17,220 --> 01:19:20,400
bond yield and you have the green which
1700
01:19:20,400 --> 01:19:22,410
is the German or which is closely
1701
01:19:22,410 --> 01:19:27,000
associated to the fiber Euro USD. The
1702
01:19:27,000 --> 01:19:29,250
green is seen here now, here's what I
1703
01:19:29,250 --> 01:19:29,940
want you to look at.
1704
01:19:31,230 --> 01:19:32,310
If you look at this chart
1705
01:19:33,900 --> 01:19:37,620
you'll notice that the orange okay has a
1706
01:19:37,620 --> 01:19:41,340
low here goes higher and goes lower
1707
01:19:41,340 --> 01:19:43,410
again but look at the low is higher than
1708
01:19:43,410 --> 01:19:45,930
it is here. You do not see that
1709
01:19:45,930 --> 01:19:49,770
happening with the German. Okay, the
1710
01:19:49,770 --> 01:19:52,410
German went lower. Okay, and you
1711
01:19:52,410 --> 01:19:54,300
probably seen it easier if I went to
1712
01:19:54,840 --> 01:19:58,680
three years. Yes, we went lower and the
1713
01:19:58,680 --> 01:20:03,150
German higher in the US. So comparing
1714
01:20:03,150 --> 01:20:08,460
the lows, respectively. There is a
1715
01:20:08,670 --> 01:20:09,930
accumulation going on.
1716
01:20:10,590 --> 01:20:11,490
And it's seen
1717
01:20:11,970 --> 01:20:15,900
with the US bond yield. Okay, so now if
1718
01:20:15,900 --> 01:20:17,670
we go back to Google once again
1719
01:20:20,280 --> 01:20:21,570
and we do a 10
1720
01:20:21,900 --> 01:20:22,560
year
1721
01:20:23,640 --> 01:20:24,600
UK
1722
01:20:25,440 --> 01:20:26,280
bond
1723
01:20:29,130 --> 01:20:29,880
yield chart
1724
01:20:31,680 --> 01:20:32,910
you've been looking for again the
1725
01:20:32,910 --> 01:20:36,030
Bloomberg and it'll say government bond
1726
01:20:36,030 --> 01:20:40,650
10 year note generic, the G UK, g eu 10
1727
01:20:40,680 --> 01:20:43,680
ind. Okay, I'm just gonna copy it from
1728
01:20:43,680 --> 01:20:50,070
here. And then actually open the
1729
01:20:50,070 --> 01:20:52,620
troughs. You can see it. Now it's in my
1730
01:20:52,620 --> 01:20:55,200
clipboard. I can just drop it in mine
1731
01:20:55,380 --> 01:21:00,630
first chart for comparison reasons. You
1732
01:21:00,630 --> 01:21:01,410
can see here
1733
01:21:03,510 --> 01:21:04,410
change it to a year.
1734
01:21:05,280 --> 01:21:06,510
You can see the same thing happening
1735
01:21:06,510 --> 01:21:10,380
here that the bond market yield turns on
1736
01:21:10,380 --> 01:21:12,090
the diamond that same April May time
1737
01:21:12,090 --> 01:21:14,820
period and starts rallying up. So now if
1738
01:21:14,820 --> 01:21:18,600
we go back to diff first chart already
1739
01:21:18,600 --> 01:21:22,050
have the US in German. I'm going to
1740
01:21:22,050 --> 01:21:28,830
paste the UK. And by having the three on
1741
01:21:28,830 --> 01:21:34,050
here, you can see now the orange makes a
1742
01:21:34,050 --> 01:21:38,310
lower low than we had here. The red
1743
01:21:38,880 --> 01:21:41,490
makes a higher low and the green makes a
1744
01:21:41,490 --> 01:21:43,020
lower low so there's a divergence
1745
01:21:43,020 --> 01:21:45,930
between the three Okay, and if I go to a
1746
01:21:45,930 --> 01:21:50,940
six month now you really can't see it's
1747
01:21:50,940 --> 01:21:55,440
gonna be seen them in one year. But my
1748
01:21:55,440 --> 01:21:58,020
advice would be is you want to pull this
1749
01:21:58,020 --> 01:22:00,000
up every month and take yourself
1750
01:22:00,000 --> 01:22:02,730
snapshot picture, just to create a
1751
01:22:02,730 --> 01:22:05,550
screen capture. And just keep a record
1752
01:22:05,550 --> 01:22:06,960
of it and you'll be able to go back and
1753
01:22:06,960 --> 01:22:09,240
look at where it diverged. But
1754
01:22:09,240 --> 01:22:10,290
basically, if you look at every three
1755
01:22:10,290 --> 01:22:12,600
months or so there is a shift. Okay?
1756
01:22:12,600 --> 01:22:15,660
There's a shift in these, these yields,
1757
01:22:15,840 --> 01:22:17,250
okay? And you can see the happening here
1758
01:22:17,250 --> 01:22:18,750
and beginning of the year where the
1759
01:22:18,750 --> 01:22:21,900
green or the German tenure did not make
1760
01:22:21,900 --> 01:22:28,620
a higher high, whereas the British UK
1761
01:22:28,650 --> 01:22:31,500
yielded, and said that the American so
1762
01:22:31,500 --> 01:22:33,420
that was the shift when they started to
1763
01:22:33,420 --> 01:22:35,730
move lower. Okay, so there is a
1764
01:22:35,850 --> 01:22:38,220
continuous move up and down, up and
1765
01:22:38,220 --> 01:22:39,210
down. But generally around the
1766
01:22:39,210 --> 01:22:40,830
springtime, there's a sustained move
1767
01:22:41,700 --> 01:22:45,600
that moves throughout the summer. And
1768
01:22:45,600 --> 01:22:50,340
it's based on income tax and portfolio
1769
01:22:50,340 --> 01:22:52,620
addressing that goes along with, you
1770
01:22:52,620 --> 01:22:56,430
know, money flow, moving things from one
1771
01:22:56,430 --> 01:22:59,370
asset class to another. A new overall
1772
01:22:59,370 --> 01:23:01,740
basic level Well, you know, money
1773
01:23:01,740 --> 01:23:03,870
system, okay? And it just repeats all
1774
01:23:03,870 --> 01:23:06,390
the times it's, it's always there if you
1775
01:23:06,390 --> 01:23:09,060
just look at the higher timeframe, macro
1776
01:23:09,060 --> 01:23:11,010
view like this it's very easy to get in
1777
01:23:11,010 --> 01:23:13,200
sync with the tide. Now just for
1778
01:23:13,200 --> 01:23:15,540
completeness sake Okay, we're going to
1779
01:23:15,540 --> 01:23:18,000
look at the British Pound
1780
01:23:23,220 --> 01:23:27,600
okay and we're just gonna show you the
1781
01:23:27,600 --> 01:23:30,360
effects. Again just for completeness
1782
01:23:30,360 --> 01:23:33,420
sake not to that we're going to utilize
1783
01:23:33,420 --> 01:23:34,050
in the
1784
01:23:37,230 --> 01:23:37,800
cable
1785
01:23:40,680 --> 01:23:45,120
in our examples but wants you to see
1786
01:23:45,180 --> 01:23:48,090
that the effects are similar with this
1787
01:23:48,090 --> 01:23:54,960
pair as well. Okay, here's our April now
1788
01:23:54,990 --> 01:23:58,110
it actually made a low earlier in the
1789
01:23:58,110 --> 01:24:00,660
year came off. Here's a loaded tradable.
1790
01:24:01,320 --> 01:24:03,570
Here's a mailer that was tradable. And
1791
01:24:03,570 --> 01:24:05,550
we came down this is where I was telling
1792
01:24:05,550 --> 01:24:07,800
everyone in my market review in advance
1793
01:24:07,800 --> 01:24:09,330
that this level here was going to be
1794
01:24:09,870 --> 01:24:12,090
sensitive, and we would see a buying
1795
01:24:12,090 --> 01:24:16,020
opportunity. And here we are 900 pips
1796
01:24:16,050 --> 01:24:18,600
later, we're up here. And where was he
1797
01:24:18,600 --> 01:24:21,360
going to go back to an old high? Why was
1798
01:24:21,360 --> 01:24:22,980
it rallying up like this and canoeing
1799
01:24:22,980 --> 01:24:24,120
pushing Higher, higher and higher and
1800
01:24:24,120 --> 01:24:25,800
higher? Everyone scratching their head
1801
01:24:25,800 --> 01:24:27,870
saying what's going on? It's because
1802
01:24:27,870 --> 01:24:30,540
it's chasing the yields. Okay? And it's
1803
01:24:30,540 --> 01:24:32,250
been no clear discernible means of
1804
01:24:32,250 --> 01:24:34,410
reversing in the yield market. So
1805
01:24:34,410 --> 01:24:35,910
therefore, there's no real clear,
1806
01:24:35,970 --> 01:24:37,860
discernible reason to expect this thing
1807
01:24:38,220 --> 01:24:40,200
to reverse and trade and blow out this
1808
01:24:40,200 --> 01:24:43,050
low. So I would still be hunting.
1809
01:24:44,370 --> 01:24:47,280
bullish scenarios longer term, but
1810
01:24:47,280 --> 01:24:48,900
certainly not negating any short term
1811
01:24:48,930 --> 01:24:51,150
intraday, scalping or short term
1812
01:24:51,150 --> 01:24:53,820
intraday day trading scenarios for being
1813
01:24:53,820 --> 01:24:58,170
a bear. So now we have covered the
1814
01:24:59,610 --> 01:25:01,590
10 years rate,
1815
01:25:02,460 --> 01:25:04,800
two, I'm sorry, 10 year t note, okay, if
1816
01:25:04,800 --> 01:25:06,780
you do your analysis on this futures
1817
01:25:06,780 --> 01:25:09,690
market, everything is reverse in terms
1818
01:25:09,690 --> 01:25:12,900
of the interest rates yield. And if the
1819
01:25:12,900 --> 01:25:15,570
10 years going lower, that means that
1820
01:25:15,570 --> 01:25:18,300
the bonds are going higher the actual
1821
01:25:18,300 --> 01:25:21,840
rate yielding the interest rate. And if
1822
01:25:21,840 --> 01:25:23,670
that's the case, the currency markets
1823
01:25:23,670 --> 01:25:25,740
are going to chase yield. Okay? So if
1824
01:25:25,740 --> 01:25:27,090
the yields are dropping, they're going
1825
01:25:27,090 --> 01:25:29,490
to go on fall it and if it's going up,
1826
01:25:29,790 --> 01:25:31,650
it's going to be falling as well. Okay.
1827
01:25:32,130 --> 01:25:34,800
So if that's been cyfle to you, and
1828
01:25:34,920 --> 01:25:36,240
obviously, you know, it's going to take
1829
01:25:36,240 --> 01:25:39,480
some time in a long time to learn this
1830
01:25:39,480 --> 01:25:42,030
concept because it takes a while for
1831
01:25:42,030 --> 01:25:44,130
these things to cycle through, you know,
1832
01:25:44,130 --> 01:25:45,930
on an annual basis and quarterly basis,
1833
01:25:45,930 --> 01:25:47,160
but I promise you if you'd spent some
1834
01:25:47,160 --> 01:25:49,560
time it'll be absolutely a wealth of
1835
01:25:49,560 --> 01:25:52,680
insight that is not gleaned anywhere on
1836
01:25:52,680 --> 01:25:58,800
the internet. Okay, guys, we are looking
1837
01:25:58,800 --> 01:26:01,350
at the time frame section of this
1838
01:26:01,350 --> 01:26:05,880
episode. Now, obviously, you know, it
1839
01:26:05,880 --> 01:26:07,230
can be very daunting for you as a
1840
01:26:07,230 --> 01:26:09,060
trader, especially if you're new. And
1841
01:26:09,060 --> 01:26:10,530
you just sit down in front of the charts
1842
01:26:10,530 --> 01:26:11,490
and you're thinking yourself, you know,
1843
01:26:11,490 --> 01:26:13,350
what am I supposed to be looking at? And
1844
01:26:13,380 --> 01:26:14,490
especially looking at a five minute
1845
01:26:14,490 --> 01:26:16,860
chart, how about 30 minute chart? You
1846
01:26:16,860 --> 01:26:18,240
know, the guy I've read on the forum
1847
01:26:18,240 --> 01:26:19,950
said, he looks at a two minute chart and
1848
01:26:19,950 --> 01:26:21,060
how about the other guy, he looks at a
1849
01:26:21,060 --> 01:26:23,070
tick chart? And as the guy says he
1850
01:26:23,070 --> 01:26:24,510
looking at anything but a weekly chart,
1851
01:26:24,540 --> 01:26:25,620
you know, so what do you do with all
1852
01:26:25,620 --> 01:26:28,260
that? Well, the main thing is, is you
1853
01:26:28,260 --> 01:26:30,360
have to keep in mind that whatever
1854
01:26:30,360 --> 01:26:32,910
timeframe you're trading, that's where
1855
01:26:32,910 --> 01:26:35,700
you work within. Okay. So basically,
1856
01:26:35,700 --> 01:26:37,950
knowing your timeframe for your trade is
1857
01:26:37,950 --> 01:26:40,320
your primary objective. Now, the
1858
01:26:40,320 --> 01:26:43,230
professional perspective, okay, that the
1859
01:26:43,230 --> 01:26:46,020
frame of your trade should be at least
1860
01:26:46,290 --> 01:26:48,330
built upon three timeframes. And that's
1861
01:26:48,330 --> 01:26:50,970
what we're teaching here. I'm building a
1862
01:26:50,970 --> 01:26:54,180
large introduction into basically
1863
01:26:54,210 --> 01:26:56,490
Alexander elders triple screen approach
1864
01:26:56,490 --> 01:27:00,690
with an ICT twist. So if Position
1865
01:27:00,690 --> 01:27:03,360
trader, you would utilize the monthly
1866
01:27:03,360 --> 01:27:05,790
the weekly in a daily chart, okay, and
1867
01:27:05,790 --> 01:27:07,500
you'd be looking for monthly higher
1868
01:27:07,500 --> 01:27:09,660
level timeframe support resistance
1869
01:27:09,660 --> 01:27:12,690
levels and reaction levels and weekly
1870
01:27:12,780 --> 01:27:15,120
chart as well and then keying off of the
1871
01:27:15,120 --> 01:27:17,310
daily chart for your trades. Now in this
1872
01:27:17,310 --> 01:27:18,870
time frame, you don't need to be in
1873
01:27:18,870 --> 01:27:20,460
front of the charts all the time. In
1874
01:27:20,460 --> 01:27:22,830
fact, you're probably going to be
1875
01:27:22,860 --> 01:27:25,440
trading very few setups throughout the
1876
01:27:25,440 --> 01:27:27,750
year. But for those that have really
1877
01:27:27,750 --> 01:27:32,340
very, very few hours of the week, to put
1878
01:27:32,340 --> 01:27:35,580
into trading, position trades may be the
1879
01:27:35,580 --> 01:27:38,160
way to go. If you're a little bit more
1880
01:27:38,250 --> 01:27:40,830
free, and you have a lot more hours
1881
01:27:40,920 --> 01:27:44,580
available to you for intraday, or I'm
1882
01:27:44,580 --> 01:27:47,370
sorry intra week trading, swing trades
1883
01:27:47,640 --> 01:27:50,550
might be up your alley. We use the
1884
01:27:50,550 --> 01:27:52,560
daily, the four hour and the one hour
1885
01:27:52,560 --> 01:27:54,030
chart and that's really what this series
1886
01:27:54,030 --> 01:27:56,880
has been framed about. The daily chart
1887
01:27:56,910 --> 01:27:58,200
and for our chart really are the
1888
01:27:58,200 --> 01:28:02,490
institutional framework For your your
1889
01:28:02,490 --> 01:28:04,860
trade setups and your your trade ideas,
1890
01:28:05,730 --> 01:28:09,000
the one hour basis, you could, you could
1891
01:28:09,030 --> 01:28:10,980
substitute that with a 15 minute chart,
1892
01:28:11,010 --> 01:28:13,620
it's really up to you. Okay, there's
1893
01:28:13,620 --> 01:28:14,850
that's where the level of flexibility
1894
01:28:14,850 --> 01:28:17,880
comes in. Now short term trading, your
1895
01:28:17,880 --> 01:28:19,860
high timeframe chart would be the four
1896
01:28:19,860 --> 01:28:21,750
hour and the one hour be in your mid
1897
01:28:21,750 --> 01:28:23,880
timeframe and your 15 minute chart would
1898
01:28:23,880 --> 01:28:26,370
be your execution timeframe. And
1899
01:28:26,370 --> 01:28:27,900
obviously, for day trades and scalps,
1900
01:28:27,930 --> 01:28:29,430
your one hour would be higher, higher
1901
01:28:29,430 --> 01:28:30,960
timeframe, your 15 minute would be your
1902
01:28:30,960 --> 01:28:33,120
mid timeframe and your five minute chart
1903
01:28:33,120 --> 01:28:35,340
would be your execution timeframe. Now
1904
01:28:35,340 --> 01:28:38,940
at any one of these levels of timeframe
1905
01:28:38,940 --> 01:28:41,370
analysis, you can always break it down
1906
01:28:41,370 --> 01:28:46,500
further to the lowest form of charting.
1907
01:28:46,500 --> 01:28:47,970
In other words, you could go down to a
1908
01:28:47,970 --> 01:28:49,620
one minute chart. Now I don't use one
1909
01:28:49,620 --> 01:28:51,990
minute charts. The lowest I go is five
1910
01:28:51,990 --> 01:28:53,580
minutes. And that's only when I've
1911
01:28:53,640 --> 01:28:56,250
really honed in to a specific key level.
1912
01:28:56,550 --> 01:28:58,350
And I'm in either either day trading or
1913
01:28:58,350 --> 01:29:01,080
scalping, which I don't do very much But
1914
01:29:01,110 --> 01:29:03,630
most of my trades are day trades, short
1915
01:29:03,630 --> 01:29:06,780
term, and swing trades. But that's the
1916
01:29:06,780 --> 01:29:08,250
framework you utilize when you're
1917
01:29:08,280 --> 01:29:09,810
breaking down the market and how you
1918
01:29:09,810 --> 01:29:11,940
digest it. And if you're going to be a
1919
01:29:12,210 --> 01:29:13,950
specific type of trader, if you work
1920
01:29:13,950 --> 01:29:15,240
with these three timeframes, as it
1921
01:29:15,240 --> 01:29:17,700
should, as suggestions, I think they'll
1922
01:29:17,700 --> 01:29:19,410
work well with you in terms of your
1923
01:29:19,410 --> 01:29:23,550
development. Alright, let's talk about
1924
01:29:23,820 --> 01:29:25,800
cycles in the marketplace. Okay, we're
1925
01:29:25,800 --> 01:29:27,420
gonna be talking about some smart money
1926
01:29:27,420 --> 01:29:29,730
concepts and some of these concepts.
1927
01:29:30,150 --> 01:29:32,790
Again, go back to Larry Williams. And
1928
01:29:32,790 --> 01:29:34,830
again, he was one of my first technical
1929
01:29:34,830 --> 01:29:38,310
analyst, quote, unquote, mentors. And
1930
01:29:38,340 --> 01:29:40,860
one of the coolest things I learned and
1931
01:29:40,890 --> 01:29:42,360
it didn't really hit me until I started
1932
01:29:42,360 --> 01:29:44,520
trading the bond market in the s&p but
1933
01:29:46,020 --> 01:29:48,480
he taught a concept it's very, very
1934
01:29:48,480 --> 01:29:50,310
generic, and it goes right over your
1935
01:29:50,310 --> 01:29:51,270
head. If you're a new trader, you're
1936
01:29:51,270 --> 01:29:52,890
thinking yourself What a stupid or
1937
01:29:53,100 --> 01:29:54,840
that's not the, you know, exciting,
1938
01:29:54,930 --> 01:29:57,570
that's pretty obvious. But it's amazing
1939
01:29:57,570 --> 01:29:59,010
how when you're trading or you're
1940
01:29:59,010 --> 01:30:00,240
looking for setups you forget This
1941
01:30:00,240 --> 01:30:00,900
phenomenon.
1942
01:30:02,159 --> 01:30:04,709
diff concept is basically how the market
1943
01:30:04,709 --> 01:30:06,899
moves from trading ranges or
1944
01:30:06,899 --> 01:30:10,229
consolidations, to swings or trends and
1945
01:30:10,229 --> 01:30:11,639
they move immediately right back into a
1946
01:30:11,639 --> 01:30:13,919
consolidation. And then after
1947
01:30:13,919 --> 01:30:15,539
consolidation, people get sick and tired
1948
01:30:15,539 --> 01:30:16,829
of the marketplace, they don't worry
1949
01:30:16,829 --> 01:30:19,289
about getting in, or they chased the
1950
01:30:19,289 --> 01:30:22,469
previous move. And that inside that Oh,
1951
01:30:22,469 --> 01:30:24,239
consolidation, or these rectangles or
1952
01:30:24,239 --> 01:30:25,679
squares, if you look at on this chart is
1953
01:30:25,679 --> 01:30:30,059
as an example. That's where dealers and
1954
01:30:30,059 --> 01:30:32,729
market makers establish their positions.
1955
01:30:32,759 --> 01:30:36,149
Okay. So, we do not chase the
1956
01:30:36,149 --> 01:30:38,219
marketplace. We do not chase price
1957
01:30:38,219 --> 01:30:40,739
rallies, we do not chase price declines.
1958
01:30:40,769 --> 01:30:44,009
We work within these consolidations,
1959
01:30:44,189 --> 01:30:46,319
smart money accumulates during
1960
01:30:46,319 --> 01:30:48,299
consolidations or when the markets not
1961
01:30:48,329 --> 01:30:51,299
attractive, okay? And we're going to
1962
01:30:51,299 --> 01:30:52,799
build on this model as we go through the
1963
01:30:52,799 --> 01:30:54,089
series, but it's very important for you
1964
01:30:54,089 --> 01:30:55,919
to start looking at the charts with this
1965
01:30:55,919 --> 01:30:58,589
premise in mind, are we consolidating
1966
01:30:58,589 --> 01:31:01,559
because that's the next The precursor is
1967
01:31:01,589 --> 01:31:04,169
the consolidation, then the next thing
1968
01:31:04,169 --> 01:31:06,149
to expect would be that he released that
1969
01:31:06,149 --> 01:31:08,969
dynamic thrust up or down in price
1970
01:31:08,969 --> 01:31:10,109
action where everybody gets really
1971
01:31:10,109 --> 01:31:11,879
excited. You see everybody tweeting
1972
01:31:11,879 --> 01:31:13,409
about it, you see every analysts saying
1973
01:31:13,409 --> 01:31:14,969
they had it right? For the last six
1974
01:31:14,969 --> 01:31:17,639
months. That's really what you're
1975
01:31:17,639 --> 01:31:19,049
looking for. You want to be in there
1976
01:31:19,049 --> 01:31:20,729
before everyone else is talking about
1977
01:31:20,729 --> 01:31:21,269
it. Okay?
1978
01:31:23,730 --> 01:31:25,710
So we're gonna be talking about the
1979
01:31:25,710 --> 01:31:28,770
concept of power of three. Okay? And
1980
01:31:29,250 --> 01:31:32,640
what this is, is basically a
1981
01:31:32,670 --> 01:31:35,010
understanding of how the market works on
1982
01:31:35,010 --> 01:31:36,600
a daily range. Okay, now we're going to
1983
01:31:36,600 --> 01:31:39,510
be looking at this bar chart. Okay. Now,
1984
01:31:39,510 --> 01:31:41,790
obviously, we deal with candlesticks, a
1985
01:31:41,790 --> 01:31:44,520
lot in my videos, and maybe in your own
1986
01:31:44,850 --> 01:31:47,100
trading and your technical analysis. But
1987
01:31:47,100 --> 01:31:48,960
for a couple minutes, let's spend a few
1988
01:31:48,960 --> 01:31:51,630
moments talking about how the open high
1989
01:31:51,630 --> 01:31:55,950
low close bar is beneficial. Now, I'm
1990
01:31:55,950 --> 01:31:57,720
not going to give you a full trees on on
1991
01:31:57,720 --> 01:31:59,970
this because I have actually a tutorial
1992
01:32:00,000 --> 01:32:02,190
rereleasing that has much more insight
1993
01:32:02,220 --> 01:32:04,140
that I'm going to go over in that but
1994
01:32:04,440 --> 01:32:05,310
this is going to be a brief
1995
01:32:05,310 --> 01:32:08,340
introduction. The concept briefly is
1996
01:32:08,340 --> 01:32:10,920
this when the market opens up on a daily
1997
01:32:10,920 --> 01:32:13,740
range, okay, you as a trader, you want
1998
01:32:13,740 --> 01:32:16,650
to be participating in large range
1999
01:32:16,650 --> 01:32:18,810
moves. Okay, like we just discussed in
2000
01:32:18,810 --> 01:32:20,640
the previous slide. You want to be
2001
01:32:20,670 --> 01:32:22,710
entering the market when it's quiet when
2002
01:32:22,710 --> 01:32:24,600
there's not a whole lot of activity, or
2003
01:32:24,720 --> 01:32:26,730
at least when the ranges start to
2004
01:32:26,730 --> 01:32:29,070
compress. Okay, when the ranges start to
2005
01:32:29,070 --> 01:32:31,200
get small, people get really bored with
2006
01:32:31,200 --> 01:32:32,640
that market, they start chasing the next
2007
01:32:32,640 --> 01:32:34,620
pair or the next commodity market or
2008
01:32:34,620 --> 01:32:36,360
whatever it is moving around a lot.
2009
01:32:36,630 --> 01:32:37,920
That's the one we're going to move move
2010
01:32:37,920 --> 01:32:40,080
to, well, during this small little
2011
01:32:40,080 --> 01:32:42,690
consolidations, or small inside days or
2012
01:32:42,690 --> 01:32:47,370
small, daily ranges, that's when I get
2013
01:32:47,370 --> 01:32:49,740
really excited because I want to be in
2014
01:32:49,740 --> 01:32:51,330
there when the markets are getting real
2015
01:32:51,330 --> 01:32:53,250
quiet to like a spring winding up
2016
01:32:53,250 --> 01:32:54,480
tighter and tighter and tighter and
2017
01:32:54,480 --> 01:32:56,310
eventually, something whatever the
2018
01:32:56,310 --> 01:32:58,620
catalyst is, I don't always know or even
2019
01:32:58,620 --> 01:33:01,080
care but really know what it is. makes
2020
01:33:01,080 --> 01:33:03,240
the market take off and hopefully in a
2021
01:33:03,240 --> 01:33:04,530
pre determined direction that I was
2022
01:33:04,530 --> 01:33:06,210
positioned then before it takes place.
2023
01:33:06,630 --> 01:33:08,520
That's that's essentially what you want
2024
01:33:08,520 --> 01:33:10,860
to be doing in your trading, whether it
2025
01:33:10,860 --> 01:33:14,160
be day trading, scalping, or short term
2026
01:33:14,160 --> 01:33:15,450
trading or position trading or swing
2027
01:33:15,450 --> 01:33:17,190
trading, whatever style trading it is,
2028
01:33:17,460 --> 01:33:19,350
you want to be getting in your position
2029
01:33:19,380 --> 01:33:21,180
during these consolidations and
2030
01:33:21,180 --> 01:33:24,180
contractions of ranges. Okay, looking at
2031
01:33:24,180 --> 01:33:25,890
this example here on the left hand side
2032
01:33:25,890 --> 01:33:28,410
of the euro, this daily chart, just
2033
01:33:28,410 --> 01:33:30,270
stare at the chart for a couple minutes
2034
01:33:30,270 --> 01:33:32,220
and you'll start seeing the how the
2035
01:33:32,220 --> 01:33:34,590
ranges gets smaller now excluding the
2036
01:33:34,590 --> 01:33:36,120
small little itty bitty tiny little
2037
01:33:36,120 --> 01:33:37,770
ranges, that's actually a Sunday candle.
2038
01:33:37,920 --> 01:33:39,270
So you got to gotta like disregard
2039
01:33:39,270 --> 01:33:42,120
those, but before the ranges get really
2040
01:33:42,120 --> 01:33:44,700
big, they actually get smaller. Okay,
2041
01:33:44,700 --> 01:33:47,130
and there's other examples of timeframes
2042
01:33:47,130 --> 01:33:49,080
and sample sizes you can utilize to
2043
01:33:49,080 --> 01:33:50,640
better illustrate this but I've been
2044
01:33:50,640 --> 01:33:52,230
looking at this for years and I can see
2045
01:33:52,620 --> 01:33:53,880
just simply looking at for a few
2046
01:33:53,880 --> 01:33:56,340
seconds, I can see the the pattern
2047
01:33:56,340 --> 01:33:57,870
itself where the ranges get smaller than
2048
01:33:57,870 --> 01:33:59,850
expand, get smaller, get expand and get
2049
01:33:59,850 --> 01:34:02,790
smaller. mauler that phenomenon, okay,
2050
01:34:03,000 --> 01:34:05,010
is one of the truest cycles in the
2051
01:34:05,010 --> 01:34:07,770
marketplace and it goes over everyone's
2052
01:34:07,770 --> 01:34:09,420
head. They don't pay attention to it.
2053
01:34:09,420 --> 01:34:10,950
And many times when they hear me talking
2054
01:34:10,950 --> 01:34:12,060
about it, it's like, well, that's pretty
2055
01:34:12,060 --> 01:34:14,370
obvious. Is it really obvious because
2056
01:34:14,370 --> 01:34:16,020
the last few times you took a trade,
2057
01:34:16,020 --> 01:34:18,480
maybe there are losers? Did you take in
2058
01:34:18,480 --> 01:34:20,160
consideration what was going on? Did you
2059
01:34:20,160 --> 01:34:21,750
chase the market after it rallied up to
2060
01:34:21,750 --> 01:34:23,910
60 pips, okay, but without any kind of
2061
01:34:23,910 --> 01:34:26,340
retracement or whatever. That's the
2062
01:34:26,340 --> 01:34:31,830
nature of this cycle, okay. And some of
2063
01:34:31,830 --> 01:34:33,720
the best money can be made simply with
2064
01:34:33,720 --> 01:34:37,770
just applying the consolidations to
2065
01:34:37,770 --> 01:34:40,050
trend or swing component we just
2066
01:34:40,050 --> 01:34:41,940
discussed in the previous slide, and
2067
01:34:41,970 --> 01:34:44,190
adding when the daily ranges themselves
2068
01:34:44,190 --> 01:34:46,500
get smaller. So, inside those larger
2069
01:34:46,830 --> 01:34:49,260
consolidations, okay, or rectangles
2070
01:34:49,260 --> 01:34:50,430
where the trading range market
2071
01:34:50,430 --> 01:34:54,270
environment develops, inside that
2072
01:34:54,270 --> 01:34:56,100
trading range if you start getting small
2073
01:34:56,100 --> 01:34:58,890
inside days or small little daily ranges
2074
01:34:58,890 --> 01:35:01,080
getting smaller than the previous Then
2075
01:35:01,080 --> 01:35:02,910
you have a really good scenario where it
2076
01:35:02,910 --> 01:35:03,960
sets up where there's going to be an
2077
01:35:03,960 --> 01:35:06,090
explosive move one, day two, day three
2078
01:35:06,090 --> 01:35:08,190
day up or down. Even upon one
2079
01:35:08,190 --> 01:35:10,080
directional bias, it was the precursor
2080
01:35:10,080 --> 01:35:12,930
going into that condition. But now let's
2081
01:35:12,930 --> 01:35:18,210
break the daily bar itself down. Looking
2082
01:35:18,210 --> 01:35:21,420
at the opening, assuming that we were
2083
01:35:21,720 --> 01:35:24,450
looking for a up day, okay, or we're in
2084
01:35:24,450 --> 01:35:28,170
a bullish scenario, generally speaking,
2085
01:35:28,410 --> 01:35:30,300
if you're trading in an area where it's
2086
01:35:30,300 --> 01:35:32,250
highly probable for the market to trade
2087
01:35:32,280 --> 01:35:34,500
up, maybe we're in a consolidation on
2088
01:35:34,500 --> 01:35:37,260
the daily chart, or four hour and then
2089
01:35:37,260 --> 01:35:39,660
in the range start contracting, okay.
2090
01:35:40,890 --> 01:35:43,290
One large range days, this is a notepad
2091
01:35:43,290 --> 01:35:44,580
moment, get this written down in your
2092
01:35:44,580 --> 01:35:48,660
notepad on large range days, the open
2093
01:35:48,960 --> 01:35:51,450
tends to be at the opposite extreme of
2094
01:35:51,450 --> 01:35:54,180
the daily range, opposed to the close.
2095
01:35:54,990 --> 01:35:56,400
As you can see in this example,
2096
01:35:56,400 --> 01:35:57,810
obviously, this is an illustrative
2097
01:35:57,840 --> 01:36:00,930
example I drew with a computer But it's
2098
01:36:00,930 --> 01:36:03,690
kind of communicate the basic premise.
2099
01:36:04,560 --> 01:36:07,140
The open generally is on an update on
2100
01:36:07,140 --> 01:36:10,410
the large range with an update bias. And
2101
01:36:10,410 --> 01:36:13,470
a closed typically sees the open at the
2102
01:36:13,470 --> 01:36:17,670
low today or near the low with the close
2103
01:36:17,790 --> 01:36:20,250
at or very near the high today. Okay.
2104
01:36:21,090 --> 01:36:23,910
Now look at the example for a moment to
2105
01:36:23,910 --> 01:36:24,480
the left.
2106
01:36:35,880 --> 01:36:38,010
Notice how many again, this is a daily
2107
01:36:38,010 --> 01:36:40,830
chart of the euro. Notice how many times
2108
01:36:41,040 --> 01:36:44,550
that open isn't the opposite extreme of
2109
01:36:44,550 --> 01:36:48,060
the daily bar or the closes. Okay?
2110
01:36:48,510 --> 01:36:51,600
there's enormous amounts of opportunity
2111
01:36:51,660 --> 01:36:54,330
within the daily range and that is what
2112
01:36:54,330 --> 01:36:56,370
you should be looking for. You want to
2113
01:36:56,370 --> 01:36:58,800
be trading at the very minimum in the
2114
01:36:58,800 --> 01:37:01,680
directional bias. of the daily range.
2115
01:37:01,830 --> 01:37:02,220
Okay,
2116
01:37:02,850 --> 01:37:05,490
we talked about the notion of having the
2117
01:37:05,490 --> 01:37:07,410
higher low form an early part of the
2118
01:37:07,410 --> 01:37:09,570
week. Okay, so that same principle
2119
01:37:09,570 --> 01:37:11,610
applies here just on a daily chart.
2120
01:37:12,000 --> 01:37:14,820
Okay. So now what this means is, if
2121
01:37:14,820 --> 01:37:17,310
you're bullish, you want to be looking
2122
01:37:17,310 --> 01:37:19,860
at the opening price. And looking at
2123
01:37:19,860 --> 01:37:21,600
that as your filter, so you wouldn't be
2124
01:37:21,600 --> 01:37:24,660
buying not very much above it, if at all
2125
01:37:24,660 --> 01:37:28,410
really, and certainly below it, okay?
2126
01:37:28,830 --> 01:37:31,290
Because what you'll learn is the opening
2127
01:37:31,290 --> 01:37:35,730
price, very rarely works both sides, up
2128
01:37:35,730 --> 01:37:39,120
or down before going up, want to update.
2129
01:37:39,150 --> 01:37:41,640
In other words, price does not spend a
2130
01:37:41,640 --> 01:37:43,230
whole lot of time monkeying around with
2131
01:37:43,230 --> 01:37:44,730
the opening price. If it goes down, it's
2132
01:37:44,730 --> 01:37:46,770
only going down briefly for a very short
2133
01:37:46,770 --> 01:37:49,050
distance. Maybe reach blow off some
2134
01:37:49,050 --> 01:37:51,060
stops, maybe retest an old
2135
01:37:51,060 --> 01:37:53,850
consolidation, dip into an old block of
2136
01:37:54,000 --> 01:37:56,010
orders for institutional purposes, and
2137
01:37:56,010 --> 01:37:58,410
then shoot straight up and continuously
2138
01:37:58,410 --> 01:38:00,000
work one side of the market. Always
2139
01:38:00,000 --> 01:38:02,820
Through the trading session, and then
2140
01:38:02,820 --> 01:38:04,860
closing off many times a little bit off
2141
01:38:04,860 --> 01:38:07,290
the high. Looking at the example you
2142
01:38:07,290 --> 01:38:09,000
have here, you can see that just about
2143
01:38:09,000 --> 01:38:14,400
happening almost on a daily basis the
2144
01:38:14,400 --> 01:38:16,350
vice versa would be obviously on a down
2145
01:38:16,350 --> 01:38:18,240
move, the open would be very near the
2146
01:38:18,240 --> 01:38:20,130
high and the close very close to the
2147
01:38:20,130 --> 01:38:23,640
low. The general principle is the low is
2148
01:38:23,640 --> 01:38:26,040
formed briefly after the opening on
2149
01:38:26,040 --> 01:38:28,680
update and the high generally formed
2150
01:38:28,680 --> 01:38:31,560
between 1500 and 1600 GMT put that in
2151
01:38:31,560 --> 01:38:33,360
your notepad and then you test that
2152
01:38:33,360 --> 01:38:35,340
theory on your own going forward for the
2153
01:38:35,340 --> 01:38:40,890
next couple of weeks. Okay, let's look
2154
01:38:40,920 --> 01:38:45,180
at a large range day. Okay, we pointed
2155
01:38:45,180 --> 01:38:48,090
out this one specifically here. And this
2156
01:38:48,090 --> 01:38:50,100
is one actually did trade. Now,
2157
01:38:50,310 --> 01:38:52,770
admittedly, I got out during the middle
2158
01:38:52,770 --> 01:38:54,900
part of the day because I had thought
2159
01:38:54,900 --> 01:38:57,120
that it was going to retrace a little
2160
01:38:57,120 --> 01:38:58,200
bit deeper and and give me a better
2161
01:38:58,200 --> 01:39:01,500
opportunity but I'm missed it. And I was
2162
01:39:01,500 --> 01:39:02,880
only able to catch the first leg of the
2163
01:39:02,880 --> 01:39:06,840
daily trend. But this large range day,
2164
01:39:07,350 --> 01:39:09,870
okay, came with the principles that we
2165
01:39:09,870 --> 01:39:12,930
just discussed. Okay, we had the chart
2166
01:39:12,930 --> 01:39:14,280
here on the right hand side is going to
2167
01:39:14,280 --> 01:39:16,560
depict a few things. The first let's
2168
01:39:16,560 --> 01:39:18,570
look at this, okay? We have the
2169
01:39:18,570 --> 01:39:22,230
beginning of a new day here, okay? Then
2170
01:39:22,230 --> 01:39:24,810
the market Peters around, okay? This is
2171
01:39:24,810 --> 01:39:27,450
all Asia, okay? And this vertical line
2172
01:39:27,450 --> 01:39:30,420
delineated here is midnight, New York
2173
01:39:30,420 --> 01:39:33,720
time, okay. Then you see the market
2174
01:39:33,720 --> 01:39:35,310
dropped down during the European session
2175
01:39:35,310 --> 01:39:38,040
in London, then the market takes off
2176
01:39:38,040 --> 01:39:40,020
goes vertical, goes into a
2177
01:39:40,020 --> 01:39:43,920
consolidation. Okay. And during this
2178
01:39:43,920 --> 01:39:45,570
time, what I actually expected was it to
2179
01:39:45,600 --> 01:39:46,920
retrace a little bit deeper, maybe come
2180
01:39:46,920 --> 01:39:49,110
back down into touch this high in here.
2181
01:39:49,740 --> 01:39:53,280
But this was the New York open trade
2182
01:39:53,280 --> 01:39:56,910
here and then violently traded higher
2183
01:39:56,910 --> 01:39:58,530
going into the latter part of the day
2184
01:39:59,100 --> 01:40:02,430
and then Peters off from the high end
2185
01:40:02,430 --> 01:40:03,840
closes just a little bit off the high
2186
01:40:03,840 --> 01:40:06,930
but certainly, well way away from the
2187
01:40:06,930 --> 01:40:09,660
opening price. And then after this
2188
01:40:09,660 --> 01:40:11,700
vertical delineation here, this is 1800
2189
01:40:11,700 --> 01:40:13,530
GMT. And I'm gonna talk about these two
2190
01:40:13,530 --> 01:40:15,630
markers in a moment because I've really
2191
01:40:15,630 --> 01:40:18,930
never discussed this on any other video
2192
01:40:18,960 --> 01:40:22,380
or series or any kind of discussion. But
2193
01:40:22,380 --> 01:40:23,520
I'm actually going to highlight more
2194
01:40:23,520 --> 01:40:25,260
insight as to why 1800 is a very
2195
01:40:25,260 --> 01:40:27,570
significant number, then the market
2196
01:40:27,570 --> 01:40:29,010
essentially goes quiet going into the
2197
01:40:29,010 --> 01:40:32,100
new day. Now, what is so special about
2198
01:40:32,100 --> 01:40:33,510
the midnight timeframe on New York?
2199
01:40:33,510 --> 01:40:36,960
Well, the North American continent
2200
01:40:37,290 --> 01:40:39,150
doesn't consider the new day.
2201
01:40:40,260 --> 01:40:40,860
Like,
2202
01:40:41,310 --> 01:40:43,740
the FX market generally calls the you
2203
01:40:43,740 --> 01:40:46,770
know, in Wellington being the new new
2204
01:40:46,770 --> 01:40:48,450
start of a new day, I don't consider
2205
01:40:48,450 --> 01:40:51,000
that as a new day. Okay, now, I
2206
01:40:51,000 --> 01:40:52,680
certainly take in consideration all the
2207
01:40:52,680 --> 01:40:56,430
Asian trading, okay, but I this is gonna
2208
01:40:56,430 --> 01:40:58,860
be very confusing, but I always count
2209
01:40:58,860 --> 01:41:02,520
that as Yes. Today's trade my new day
2210
01:41:02,550 --> 01:41:04,500
begins at midnight, New York Standard
2211
01:41:04,500 --> 01:41:07,020
Time. Now again, it's gonna probably
2212
01:41:07,020 --> 01:41:08,940
gonna throw a lot of us off, but just
2213
01:41:08,940 --> 01:41:10,710
understand this is how I break the
2214
01:41:10,710 --> 01:41:15,510
market down midnight New York time to
2215
01:41:15,510 --> 01:41:21,210
1800 GMT time, okay, or basically 2pm
2216
01:41:22,260 --> 01:41:25,020
New York time. Okay, that's the cutoff
2217
01:41:25,020 --> 01:41:27,000
of the daily range. Everyone asked when
2218
01:41:27,030 --> 01:41:28,680
to close, you know, when does New York
2219
01:41:28,680 --> 01:41:29,820
close or when does this and when does
2220
01:41:29,820 --> 01:41:32,400
that? Let's talk about the commodity
2221
01:41:32,400 --> 01:41:34,590
market for a moment because before FX
2222
01:41:34,590 --> 01:41:36,900
was opened up to the general public, the
2223
01:41:36,900 --> 01:41:38,400
only time you could really participate
2224
01:41:38,430 --> 01:41:40,740
in the currency market was if you were
2225
01:41:40,740 --> 01:41:43,710
trading the options market or the
2226
01:41:43,710 --> 01:41:46,800
futures and or Midem contracts on the
2227
01:41:46,830 --> 01:41:50,070
commodity exchanges. And it was in the
2228
01:41:50,070 --> 01:41:52,680
form of open outcry. Now open outcry
2229
01:41:52,680 --> 01:41:54,630
still in existence today, not as
2230
01:41:54,690 --> 01:41:57,150
predominantly as was years ago because
2231
01:41:57,150 --> 01:41:58,770
everything's slowly transitioning to
2232
01:41:58,770 --> 01:42:02,010
electronic to dismiss wants to their
2233
01:42:02,010 --> 01:42:05,310
dismay, but there is essentially a
2234
01:42:05,880 --> 01:42:08,370
rhythm to the marketplace still based on
2235
01:42:08,370 --> 01:42:11,220
that open outcry. Now, put this in your
2236
01:42:11,220 --> 01:42:15,120
notepad currency markets, okay or calm
2237
01:42:15,120 --> 01:42:16,980
dolls okay that means the commodity
2238
01:42:16,980 --> 01:42:18,120
markets that trade on the futures
2239
01:42:18,120 --> 01:42:20,220
contract basis that means Australian
2240
01:42:20,220 --> 01:42:23,340
dollar Canadian dollar British Pound
2241
01:42:23,460 --> 01:42:27,600
Swiss franc Japanese yen okay those
2242
01:42:27,600 --> 01:42:30,390
currencies okay or Calm down, they can
2243
01:42:30,690 --> 01:42:33,810
be traded as a futures contract the
2244
01:42:33,810 --> 01:42:36,840
futures contract open outcry pit begins
2245
01:42:36,840 --> 01:42:41,100
trading at 720 New York time now what do
2246
01:42:41,100 --> 01:42:42,360
you think so significant about that
2247
01:42:42,360 --> 01:42:45,480
time? That's 20 minutes after the
2248
01:42:45,480 --> 01:42:47,280
beginning of our New York open kill
2249
01:42:47,280 --> 01:42:50,340
zone. Okay. Why is the New York open
2250
01:42:50,610 --> 01:42:52,620
kill zone so cool and so easy to trade
2251
01:42:52,650 --> 01:42:56,880
is because that market event open outcry
2252
01:42:57,240 --> 01:42:59,970
also is going to be involved in the
2253
01:43:00,000 --> 01:43:04,980
Daily range, okay. Why 1800? Well,
2254
01:43:05,250 --> 01:43:06,990
because at two o'clock in the afternoon
2255
01:43:06,990 --> 01:43:09,000
in New York time, the open outcry pit
2256
01:43:09,000 --> 01:43:11,130
closes, and they are gone for the day.
2257
01:43:11,670 --> 01:43:13,320
And you can see here that clearly is
2258
01:43:13,320 --> 01:43:15,660
illustrated, there's no more volatility,
2259
01:43:15,690 --> 01:43:18,030
very measured, very little volatility
2260
01:43:18,030 --> 01:43:21,600
all unless there's an FOMC you know,
2261
01:43:21,600 --> 01:43:22,710
interest rate announcement, which
2262
01:43:22,710 --> 01:43:24,480
typically comes in around two o'clock in
2263
01:43:24,480 --> 01:43:26,910
the afternoon, in late in the afternoon,
2264
01:43:26,940 --> 01:43:28,290
where it really nobody should be trading
2265
01:43:28,290 --> 01:43:31,920
anyway. So will you miss a moose?
2266
01:43:31,950 --> 01:43:34,020
Certainly, if you if you're really
2267
01:43:34,020 --> 01:43:36,090
involved in trying to gamble trading
2268
01:43:36,090 --> 01:43:37,650
those types of events like non farm
2269
01:43:37,650 --> 01:43:39,330
payroll, I can certainly do without
2270
01:43:39,330 --> 01:43:41,280
trading one Friday every month, okay. I
2271
01:43:41,280 --> 01:43:43,020
don't really care to be a part of that
2272
01:43:43,020 --> 01:43:44,940
roller coaster. I can trade it I just
2273
01:43:44,940 --> 01:43:48,630
choose not to. But if you break it out
2274
01:43:48,630 --> 01:43:50,760
your days like this, okay, on an
2275
01:43:50,760 --> 01:43:52,170
intraday basis, I think what you'll
2276
01:43:52,170 --> 01:43:54,570
start seeing is there's a clear symmetry
2277
01:43:54,570 --> 01:43:59,850
to the market that goes unnoticed by 99%
2278
01:43:59,880 --> 01:44:04,710
of have mentors or gurus or teachers, or
2279
01:44:04,710 --> 01:44:06,510
even traders and this is the actual
2280
01:44:06,510 --> 01:44:08,760
daily range that goes on every single
2281
01:44:08,760 --> 01:44:11,040
day. If you understand how that works,
2282
01:44:11,040 --> 01:44:15,210
you can see this, the open the down move
2283
01:44:15,330 --> 01:44:17,550
to move up the high and off the close.
2284
01:44:18,300 --> 01:44:20,250
And as you see here, the open the down
2285
01:44:20,250 --> 01:44:22,740
move the high format and then off the
2286
01:44:22,740 --> 01:44:24,690
close, I mean off the high as it close.
2287
01:44:25,200 --> 01:44:27,780
So that's what we're looking for when
2288
01:44:27,780 --> 01:44:29,250
we're trading intraday or getting
2289
01:44:29,250 --> 01:44:33,210
positioned during up. We're bullish
2290
01:44:33,240 --> 01:44:34,440
market environments.
2291
01:44:38,190 --> 01:44:41,250
Okay, let's talk about kill zones. Okay,
2292
01:44:41,250 --> 01:44:43,080
and first we're gonna talk about it in
2293
01:44:43,140 --> 01:44:45,000
my timezone which is the Eastern
2294
01:44:45,000 --> 01:44:47,130
Standard Time. I live on the east coast
2295
01:44:47,130 --> 01:44:49,410
of North America in Baltimore, Maryland.
2296
01:44:50,490 --> 01:44:54,990
And basically, we're looking at the
2297
01:44:54,990 --> 01:44:57,480
European and American session. We're not
2298
01:44:57,480 --> 01:44:59,730
going to spend too much time actually
2299
01:44:59,760 --> 01:45:01,260
really Anytime at all really talking
2300
01:45:01,260 --> 01:45:04,650
about Asia or the Pacific Australian
2301
01:45:04,650 --> 01:45:06,960
session, because it's basically the
2302
01:45:06,960 --> 01:45:09,000
quiet portion of the daily range and
2303
01:45:09,000 --> 01:45:11,370
really when markets are accumulating new
2304
01:45:11,370 --> 01:45:13,350
orders, okay, and we'll talk more about
2305
01:45:13,350 --> 01:45:16,230
that later on in other episodes. But for
2306
01:45:16,230 --> 01:45:19,320
now, understand this, I generally start
2307
01:45:19,320 --> 01:45:22,020
hunting during the Frankfurt open, which
2308
01:45:22,020 --> 01:45:24,360
is to aim and many, many times you'll
2309
01:45:24,360 --> 01:45:26,370
hear me commonly call to end the
2310
01:45:26,370 --> 01:45:28,950
beginning of the London session. And
2311
01:45:28,950 --> 01:45:32,070
it's either because I'm rushing, trying
2312
01:45:32,070 --> 01:45:34,470
to talk about something and really just
2313
01:45:34,800 --> 01:45:37,110
inadvertently misquoting it, but just
2314
01:45:37,110 --> 01:45:39,030
understand this when I get up in the
2315
01:45:39,030 --> 01:45:40,740
middle of night to start trading in my
2316
01:45:40,740 --> 01:45:42,930
timezone. Okay, two o'clock in the
2317
01:45:42,930 --> 01:45:45,810
morning, I'm in there hunting, okay, but
2318
01:45:45,810 --> 01:45:47,340
I'm hunting essentially the move that
2319
01:45:47,340 --> 01:45:49,080
sets the higher the low of the day, and
2320
01:45:49,080 --> 01:45:51,150
I want to trade in directional bias for
2321
01:45:51,150 --> 01:45:53,220
that daily range going into London close
2322
01:45:54,150 --> 01:45:59,040
and or 1800 GMT. Okay. The London kill
2323
01:45:59,040 --> 01:46:04,800
zone. I use 5am as mine close of shop.
2324
01:46:04,830 --> 01:46:06,150
In other words, if I haven't established
2325
01:46:06,180 --> 01:46:09,690
a position by 5am my time, okay, I
2326
01:46:09,690 --> 01:46:11,880
basically take a nap and come back right
2327
01:46:11,880 --> 01:46:13,230
before seven o'clock in the morning.
2328
01:46:13,440 --> 01:46:14,940
Okay, generally at 630 in the morning,
2329
01:46:14,940 --> 01:46:16,200
I'm picking up the charts and seeing
2330
01:46:16,200 --> 01:46:18,780
what's going on. Now, for the American
2331
01:46:18,780 --> 01:46:20,610
session here, you see 8am. And that's
2332
01:46:20,610 --> 01:46:23,400
commonly what's been disclosed with many
2333
01:46:23,430 --> 01:46:25,440
other trading teachers. Okay, but if you
2334
01:46:25,440 --> 01:46:27,870
look at your charts, guys, many times
2335
01:46:27,870 --> 01:46:29,880
the moves are starting about 7am between
2336
01:46:29,880 --> 01:46:33,240
7am to 7:30am. Okay, and now you
2337
01:46:33,240 --> 01:46:35,070
understand why because the open outcry
2338
01:46:35,070 --> 01:46:37,860
pit starts at 7:20am New York time. So
2339
01:46:37,860 --> 01:46:39,570
there's a reason why there's something
2340
01:46:39,870 --> 01:46:42,600
that you generates a signal there or a
2341
01:46:42,600 --> 01:46:43,890
swing higher swing low that can be
2342
01:46:43,890 --> 01:46:46,230
incorporated on that daily range, to
2343
01:46:46,230 --> 01:46:48,900
trade intraday setups, whether it be
2344
01:46:48,900 --> 01:46:52,680
scalps or day trades. And I'm usually
2345
01:46:52,680 --> 01:46:54,960
close up shop anywhere between 1500 to
2346
01:46:54,960 --> 01:46:58,050
1600. GMT, generally 80% of the time,
2347
01:46:58,230 --> 01:47:00,000
and then when it's really really tasty.
2348
01:47:00,000 --> 01:47:02,280
taken off and blown out all upset as I
2349
01:47:02,280 --> 01:47:05,610
had for the day. I'll leave a very small
2350
01:47:05,610 --> 01:47:08,190
portion of the trade on for 1800 GMT but
2351
01:47:08,190 --> 01:47:10,980
very rarely does it ever happen many
2352
01:47:11,010 --> 01:47:12,750
most of time 80% of the time I'm out of
2353
01:47:12,750 --> 01:47:15,630
the market by 1600 GMT So between 1500
2354
01:47:15,720 --> 01:47:18,600
and 1600 GMT that used to close of the
2355
01:47:18,600 --> 01:47:20,580
day for me it's we're not usually you'll
2356
01:47:20,580 --> 01:47:22,200
see the higher low form for the day.
2357
01:47:22,980 --> 01:47:25,230
Okay folks, we're looking at the Euro
2358
01:47:25,230 --> 01:47:28,710
USD five minute chart. And what I have
2359
01:47:28,710 --> 01:47:31,260
delineated on this chart here we have
2360
01:47:31,350 --> 01:47:35,430
these red dashed lines, okay, and green
2361
01:47:35,430 --> 01:47:37,170
dashed lines, okay, now if I keep my
2362
01:47:37,170 --> 01:47:38,520
mouse right on top of it, it's going to
2363
01:47:38,520 --> 01:47:41,460
show the ICT Asian range and what I've
2364
01:47:41,460 --> 01:47:46,110
done was simply pull up the indicator
2365
01:47:47,310 --> 01:47:49,260
and I edited the beginning
2366
01:47:50,670 --> 01:47:51,450
and end
2367
01:47:51,930 --> 01:47:56,100
of specific windows of time. This is the
2368
01:47:56,490 --> 01:47:58,830
London open kill zone that I trade with
2369
01:47:59,550 --> 01:48:02,280
begins stocking setups for the European
2370
01:48:02,280 --> 01:48:05,760
session at six GMT. And as late as 10
2371
01:48:05,760 --> 01:48:10,290
GMT. And for the New York open, I made
2372
01:48:10,290 --> 01:48:12,390
it real easy. And something that's
2373
01:48:12,420 --> 01:48:13,920
generic you guys can use over and over
2374
01:48:13,920 --> 01:48:18,360
again 12 to 15 GMT. Okay 12 to 15 GMT
2375
01:48:18,810 --> 01:48:21,210
took out all of the subtle nuances that
2376
01:48:21,210 --> 01:48:24,630
make me use 30 minute dividers and such
2377
01:48:24,630 --> 01:48:26,460
I'm just giving you a block of time 12
2378
01:48:26,460 --> 01:48:29,130
to 15 GMT. And that'll give you
2379
01:48:29,160 --> 01:48:31,500
everything you would need for the New
2380
01:48:31,500 --> 01:48:35,310
York open session. Now when you have
2381
01:48:35,310 --> 01:48:38,610
this on your chart, okay, and I'm sure
2382
01:48:38,610 --> 01:48:39,750
you're probably asking yourself, you
2383
01:48:39,750 --> 01:48:40,890
know, what's great, can I have that
2384
01:48:40,890 --> 01:48:43,680
indicator to I'm going to supply it, I'm
2385
01:48:43,680 --> 01:48:48,210
going to add it to a file server and if
2386
01:48:48,240 --> 01:48:53,010
FX gears comm could could allow me to
2387
01:48:53,190 --> 01:48:55,110
host it on the thread I'm doing there.
2388
01:48:55,590 --> 01:48:57,690
That's wonderful. If not, I'll get with
2389
01:48:57,690 --> 01:48:59,880
jack and see if he could hook you guys
2390
01:48:59,880 --> 01:49:02,580
up. You guys can download it and a
2391
01:49:02,580 --> 01:49:04,380
couple other indicators that we're going
2392
01:49:04,380 --> 01:49:06,930
to be employing in this video series.
2393
01:49:08,430 --> 01:49:09,720
Now what I want to draw your attention
2394
01:49:09,720 --> 01:49:12,840
to is that I want you to see the highs
2395
01:49:12,840 --> 01:49:15,510
and lows that form during these
2396
01:49:15,510 --> 01:49:17,880
particular sessions. This is the new
2397
01:49:17,880 --> 01:49:20,160
york open session and the London open
2398
01:49:20,160 --> 01:49:22,410
session, the high the day form during
2399
01:49:22,440 --> 01:49:26,250
the London open and the low was
2400
01:49:26,250 --> 01:49:28,830
essentially almost formed during the New
2401
01:49:28,830 --> 01:49:32,760
York session going into that 1600 hour
2402
01:49:34,050 --> 01:49:34,950
the next day.
2403
01:49:36,330 --> 01:49:39,180
Okay, we have a nice tradable rally up
2404
01:49:39,210 --> 01:49:43,500
into this area of time it was just
2405
01:49:43,500 --> 01:49:46,470
outside of it by two, two bars here or
2406
01:49:46,470 --> 01:49:49,590
an hour 10 minutes and then sold off. We
2407
01:49:49,590 --> 01:49:51,090
have a nice opportunity to get in sync
2408
01:49:51,090 --> 01:49:53,070
with the daily trend here with a high
2409
01:49:53,070 --> 01:49:56,340
forming in New York open and making a
2410
01:49:56,340 --> 01:50:00,510
move lower. We have the low forming in
2411
01:50:00,510 --> 01:50:02,940
London. And then another tradable low
2412
01:50:02,940 --> 01:50:06,330
off of the direction formed from the
2413
01:50:06,360 --> 01:50:09,540
London open. Here is the New York open
2414
01:50:10,260 --> 01:50:16,080
trade. And this happened to be one that
2415
01:50:16,080 --> 01:50:20,310
I took part in and a live trade. So this
2416
01:50:20,310 --> 01:50:22,260
is the scenario. I'll go over this
2417
01:50:22,260 --> 01:50:23,490
because I hadn't been doing video
2418
01:50:24,150 --> 01:50:27,930
reviews in a couple weeks. Just give you
2419
01:50:27,930 --> 01:50:35,760
this as a highlight. Okay, the price
2420
01:50:35,760 --> 01:50:40,590
made all these multiple steps lower and
2421
01:50:40,590 --> 01:50:42,180
showed an unwillingness to go lower
2422
01:50:42,210 --> 01:50:45,870
consolidated, found a low in London
2423
01:50:45,930 --> 01:50:51,060
open, trade it up and retraced into New
2424
01:50:51,060 --> 01:50:53,490
York session going into optimal trade
2425
01:50:53,490 --> 01:50:59,040
entry and a sweet spot and rallied on up
2426
01:50:59,070 --> 01:50:59,490
now
2427
01:51:01,860 --> 01:51:02,370
If
2428
01:51:08,580 --> 01:51:09,750
you use your
2429
01:51:12,030 --> 01:51:13,140
Fibonacci tools
2430
01:51:25,050 --> 01:51:28,410
here's your 162 extension, nailing it
2431
01:51:28,500 --> 01:51:31,200
for the high and we'll talk more about
2432
01:51:31,200 --> 01:51:33,930
targeting and an exit prices and all
2433
01:51:33,930 --> 01:51:35,850
that stuff when we get into later
2434
01:51:36,000 --> 01:51:38,220
portions of the series but you can see
2435
01:51:38,220 --> 01:51:41,790
how the London and New York open kill
2436
01:51:41,790 --> 01:51:43,290
zones here gave you very nice
2437
01:51:43,320 --> 01:51:46,290
opportunities for setup. Here we have
2438
01:51:46,290 --> 01:51:48,810
another scenario where using the
2439
01:51:48,810 --> 01:51:51,420
previous day's low, okay, and all we're
2440
01:51:51,420 --> 01:51:52,740
doing here is highlighting the
2441
01:51:52,740 --> 01:51:56,610
importance or the influence that the New
2442
01:51:56,610 --> 01:52:01,140
York and London kill zones provides for
2443
01:52:01,320 --> 01:52:04,860
setting up opportunities to trade this
2444
01:52:05,010 --> 01:52:09,150
area here, okay, during the London open,
2445
01:52:11,010 --> 01:52:13,920
we retraced inside this range here. And
2446
01:52:13,920 --> 01:52:16,290
then where we had this consolidation and
2447
01:52:16,290 --> 01:52:18,750
the market moved out of it, this this
2448
01:52:18,780 --> 01:52:22,410
placement can only happen when there is
2449
01:52:22,500 --> 01:52:24,990
a large entity behind the move, okay,
2450
01:52:24,990 --> 01:52:27,180
retail traders will not cause this.
2451
01:52:27,330 --> 01:52:29,910
Okay. And then price retraces back into
2452
01:52:29,910 --> 01:52:31,680
it. And then What's it do arise up
2453
01:52:31,680 --> 01:52:33,870
again, where's it rally to, to take out
2454
01:52:33,990 --> 01:52:36,150
old highs in here that were to clean?
2455
01:52:36,300 --> 01:52:38,640
Okay, it's way too clean and price
2456
01:52:38,640 --> 01:52:40,200
stabbed up in there and gave an
2457
01:52:40,200 --> 01:52:42,480
opportunity to take profits if you were
2458
01:52:42,480 --> 01:52:44,970
a short term scalper on the long side,
2459
01:52:45,390 --> 01:52:47,970
but the bias was lower. Okay. And we
2460
01:52:47,970 --> 01:52:51,840
talked about earlier. You know how it's
2461
01:52:51,840 --> 01:52:52,950
important to focus on these higher
2462
01:52:52,950 --> 01:52:57,870
timeframe key reaction levels and the
2463
01:52:57,900 --> 01:52:59,760
that was the reason why we saw this
2464
01:53:00,270 --> 01:53:05,490
Really explosive move lower the high
2465
01:53:05,490 --> 01:53:08,280
form during the New York open session
2466
01:53:08,940 --> 01:53:12,510
and the low actually formed in the New
2467
01:53:12,510 --> 01:53:16,140
York session as well. The Fallen day we
2468
01:53:16,140 --> 01:53:19,980
had a short term, high four and a half
2469
01:53:19,980 --> 01:53:24,960
here, but a tradable low formed off the
2470
01:53:24,990 --> 01:53:28,590
fiber ended New York session making the
2471
01:53:28,590 --> 01:53:31,500
high here and enclosing the weekend. As
2472
01:53:31,500 --> 01:53:37,680
we see the kill zones are where you
2473
01:53:37,710 --> 01:53:41,430
bracket in terms of time. Now by itself
2474
01:53:41,460 --> 01:53:43,020
doesn't do anything for you. You have to
2475
01:53:43,020 --> 01:53:44,730
have an understanding of support
2476
01:53:44,730 --> 01:53:49,260
resistance and key music reaction levels
2477
01:53:49,260 --> 01:53:51,930
and directional premise to frame your
2478
01:53:51,930 --> 01:53:54,630
trade on but inside these little
2479
01:53:54,630 --> 01:53:57,510
pockets, okay, and really it looks like
2480
01:53:57,510 --> 01:54:00,630
this if if it's hard for You just see
2481
01:54:02,520 --> 01:54:04,860
it's this whole window right here of
2482
01:54:04,860 --> 01:54:08,730
time. Inside this block of time is where
2483
01:54:08,730 --> 01:54:11,280
the scenario of a trade should form.
2484
01:54:11,700 --> 01:54:15,960
Okay? And the same thing goes for the
2485
01:54:16,680 --> 01:54:21,090
London open inside this area or small
2486
01:54:21,090 --> 01:54:23,550
little pocket of time in price. That's
2487
01:54:23,550 --> 01:54:24,930
what the scenario is going to unfold for
2488
01:54:24,930 --> 01:54:27,300
you to take a trade. Okay? So it allows
2489
01:54:27,300 --> 01:54:29,940
you to really hone in like a scope on a
2490
01:54:29,940 --> 01:54:33,120
rifle like a sniper. Does zero in on
2491
01:54:33,120 --> 01:54:35,700
where you should be sitting down in
2492
01:54:35,700 --> 01:54:37,470
front of your computer. Okay, if you're
2493
01:54:37,470 --> 01:54:39,540
a London open, or London trader, this is
2494
01:54:39,540 --> 01:54:41,910
where you do your business. Okay, if you
2495
01:54:41,910 --> 01:54:43,650
are a London trader and don't trade down
2496
01:54:43,650 --> 01:54:44,730
in New York question, you're cheating
2497
01:54:44,730 --> 01:54:46,110
yourself because there's a lot of times
2498
01:54:46,470 --> 01:54:49,440
the setups that you may have missed
2499
01:54:49,440 --> 01:54:51,090
being incorrect or just miss all
2500
01:54:51,090 --> 01:54:53,040
together will give you a an opportunity
2501
01:54:53,040 --> 01:54:55,200
to get in sync with that move. darned in
2502
01:54:55,200 --> 01:54:58,680
New York session. My My best advice as a
2503
01:54:58,680 --> 01:55:00,570
mentor would be to really try Learn that
2504
01:55:00,570 --> 01:55:04,560
New York session. It's very comfortable
2505
01:55:04,560 --> 01:55:06,600
traded as in North American trader,
2506
01:55:07,860 --> 01:55:10,800
unless you're on the west coast, and if
2507
01:55:10,800 --> 01:55:12,420
you're out there on the west coast, you
2508
01:55:12,420 --> 01:55:13,590
know, that's just something that's gonna
2509
01:55:13,860 --> 01:55:16,440
have to suck up because there's nothing
2510
01:55:16,440 --> 01:55:18,390
more about it than I can say that you
2511
01:55:18,420 --> 01:55:20,250
guys got generally very favorable
2512
01:55:20,250 --> 01:55:23,340
weather. So this is the thing you got to
2513
01:55:23,340 --> 01:55:26,790
trade in for it. And so, anyway, the New
2514
01:55:26,790 --> 01:55:28,380
York session, obviously, to me, I think
2515
01:55:28,380 --> 01:55:30,090
is the easiest one to learn. It's the
2516
01:55:30,090 --> 01:55:32,430
most forgiving because it gives you the
2517
01:55:32,430 --> 01:55:35,760
London session behind you, as a, you
2518
01:55:35,760 --> 01:55:37,380
know, a catalyst just to frame your
2519
01:55:37,380 --> 01:55:39,120
trade off. So if you have a higher time
2520
01:55:39,120 --> 01:55:40,800
frame support and resistance level,
2521
01:55:41,010 --> 01:55:43,410
noted a directional premise in mind, and
2522
01:55:43,410 --> 01:55:44,910
then you have, you know, the London
2523
01:55:44,910 --> 01:55:47,130
session, can you in that same direction
2524
01:55:47,130 --> 01:55:48,960
mean you have a loaded deal, as you have
2525
01:55:48,960 --> 01:55:51,180
here in this example on the fourth of
2526
01:55:51,180 --> 01:55:51,810
September
2527
01:55:55,500 --> 01:55:56,070
the
2528
01:55:58,770 --> 01:56:00,000
let's take all this stuff off, actually.
2529
01:56:01,650 --> 01:56:04,230
If you have
2530
01:56:06,240 --> 01:56:07,470
any doubts that
2531
01:56:09,240 --> 01:56:10,050
there is
2532
01:56:11,610 --> 01:56:12,240
some
2533
01:56:13,140 --> 01:56:16,560
significance behind these particular
2534
01:56:16,560 --> 01:56:18,810
windows of time, it's going to be your
2535
01:56:18,810 --> 01:56:23,040
homework to actually go through the next
2536
01:56:23,040 --> 01:56:26,640
week, okay, and have those time windows
2537
01:56:26,640 --> 01:56:31,110
bracketed out. Again, for the New York
2538
01:56:31,110 --> 01:56:35,280
session, it's going to be 12 GMT to 1500
2539
01:56:35,280 --> 01:56:40,920
GMT. And six GMT, the 10 GMT for the
2540
01:56:40,950 --> 01:56:43,440
London open kill zone. And for those who
2541
01:56:43,440 --> 01:56:44,310
have been following me for a while if
2542
01:56:44,310 --> 01:56:45,360
you've noticed there's a slight
2543
01:56:45,360 --> 01:56:47,430
difference in those windows. I just did
2544
01:56:47,430 --> 01:56:48,990
it for this teaching series because
2545
01:56:48,990 --> 01:56:51,210
there's a lot of members of FX gears
2546
01:56:51,210 --> 01:56:53,370
it's not familiar with my stuff. And I'm
2547
01:56:53,370 --> 01:56:55,110
not going to be populating their website
2548
01:56:55,110 --> 01:56:57,000
with all of my videos so I just more or
2549
01:56:57,000 --> 01:56:59,970
less made it user friendly. So that way
2550
01:57:00,000 --> 01:57:02,190
guys can have generic time windows to
2551
01:57:02,190 --> 01:57:04,770
work with and they'll be very friendly
2552
01:57:04,770 --> 01:57:06,210
to you, there's nothing going to be
2553
01:57:06,480 --> 01:57:08,250
missed outside of those windows of time.
2554
01:57:09,000 --> 01:57:12,360
But if you do this for a week, okay, my
2555
01:57:12,480 --> 01:57:14,610
advice is to see what happens during
2556
01:57:14,610 --> 01:57:18,750
these windows of time. Okay? And when
2557
01:57:18,750 --> 01:57:22,320
there is high level, higher timeframe,
2558
01:57:22,680 --> 01:57:25,260
reaction level around the same pockets
2559
01:57:25,260 --> 01:57:27,450
of opportunity in terms of time kills
2560
01:57:27,450 --> 01:57:29,520
ends, and then you'll see a confluence
2561
01:57:29,550 --> 01:57:32,730
of events unfolding that if you miss it,
2562
01:57:32,730 --> 01:57:34,170
we'll find out more about it in the
2563
01:57:34,170 --> 01:57:35,250
fourth installment because we're going
2564
01:57:35,250 --> 01:57:37,260
to go over the examples. But really, I
2565
01:57:37,260 --> 01:57:40,560
want you to see what you think may
2566
01:57:40,560 --> 01:57:42,210
happen based on everything we've covered
2567
01:57:42,210 --> 01:57:45,120
so far. It's not a test, okay? It's just
2568
01:57:45,150 --> 01:57:47,310
a learning opportunity for you to
2569
01:57:47,310 --> 01:57:49,770
familiarize yourself with price action.
2570
01:57:58,050 --> 01:58:01,320
Okay, we are looking at the ICT market
2571
01:58:01,320 --> 01:58:07,200
maker by model, okay? This very crude
2572
01:58:07,290 --> 01:58:12,210
depiction of how markets move on a
2573
01:58:12,240 --> 01:58:14,970
fractal basis, okay. Generally what
2574
01:58:14,970 --> 01:58:16,800
you'll see is the market will open
2575
01:58:17,970 --> 01:58:21,360
inside of a consolidation trading range
2576
01:58:21,960 --> 01:58:25,740
and not open but don't enter a trading
2577
01:58:25,740 --> 01:58:30,060
range environment. Now this by model is
2578
01:58:30,060 --> 01:58:31,560
really universal, it could be applied to
2579
01:58:31,560 --> 01:58:33,210
any timeframe but we're going to be
2580
01:58:33,210 --> 01:58:37,560
basically looking at it on the four
2581
01:58:37,560 --> 01:58:41,670
hour, one hour 15 and five minute basis,
2582
01:58:41,820 --> 01:58:44,790
okay. And what will happen is, is the
2583
01:58:44,790 --> 01:58:45,600
market will move out of that
2584
01:58:45,600 --> 01:58:48,060
consolidation, trade out of it and then
2585
01:58:48,060 --> 01:58:50,070
come back and many times retest that
2586
01:58:50,070 --> 01:58:52,800
first consolidation. Okay, so if you
2587
01:58:52,800 --> 01:58:55,350
miss the accumulation portion of the
2588
01:58:55,380 --> 01:58:59,130
first wave down, you can get back
2589
01:58:59,640 --> 01:59:01,110
instantly With it by waiting for this
2590
01:59:01,110 --> 01:59:04,770
retracement up, okay? And this just
2591
01:59:04,770 --> 01:59:07,980
swings aren't generally in this example,
2592
01:59:08,970 --> 01:59:10,860
aren't really uniform. In other words,
2593
01:59:10,860 --> 01:59:12,330
this could come up a little bit higher
2594
01:59:12,330 --> 01:59:14,910
into the range from this high here to
2595
01:59:14,910 --> 01:59:17,460
this low and give you some kind of a 62
2596
01:59:17,460 --> 01:59:20,970
to 77 tradesmen level not necessary. But
2597
01:59:21,360 --> 01:59:22,860
there's other factors that you could
2598
01:59:22,860 --> 01:59:25,140
hunt in here to set up a scenario to
2599
01:59:25,140 --> 01:59:28,230
sell short if you want to participate in
2600
01:59:28,230 --> 01:59:31,950
the first leg going lower. Once price
2601
01:59:31,950 --> 01:59:34,680
comes down into a resistance level or
2602
01:59:34,680 --> 01:59:37,650
support level, you have an inversion
2603
01:59:37,650 --> 01:59:40,140
level where maybe this level was
2604
01:59:40,140 --> 01:59:42,300
possibly an old level of resistance and
2605
01:59:42,420 --> 01:59:44,490
my market broke through came back down
2606
01:59:44,490 --> 01:59:46,860
down to testing and support. Basically
2607
01:59:46,890 --> 01:59:49,020
when price comes down to a clear level
2608
01:59:49,080 --> 01:59:53,730
of support rather, we could expect the
2609
01:59:53,730 --> 01:59:55,380
market to turn around now doesn't mean
2610
01:59:55,410 --> 01:59:56,910
we did go in here start buying it up.
2611
01:59:56,940 --> 02:00:00,000
You can but I don't generally teach them
2612
02:00:00,000 --> 02:00:02,910
That as a means of doing it. After some
2613
02:00:02,910 --> 02:00:05,850
years of training and trading real time
2614
02:00:05,880 --> 02:00:07,950
once you get some experience under your
2615
02:00:07,950 --> 02:00:09,240
belt, you may be able to take trades
2616
02:00:09,240 --> 02:00:10,470
like that. But that's not what I'm
2617
02:00:10,920 --> 02:00:13,380
illustrating in these videos, I want you
2618
02:00:13,380 --> 02:00:15,570
to wait for some confirmation.
2619
02:00:16,200 --> 02:00:17,610
Confirmation comes in the form of a
2620
02:00:17,610 --> 02:00:20,580
break in market structure. And it moves
2621
02:00:20,580 --> 02:00:22,470
higher and many times comes back and
2622
02:00:22,470 --> 02:00:23,700
gives you an opportunity to retest that
2623
02:00:23,700 --> 02:00:25,530
first consolidation in here after the
2624
02:00:25,530 --> 02:00:27,420
climax reversal pattern forms at
2625
02:00:27,420 --> 02:00:30,570
support. price will come up and rally
2626
02:00:30,570 --> 02:00:31,800
out of that again move into another
2627
02:00:31,800 --> 02:00:34,500
consolidation. Okay, and we could be
2628
02:00:34,530 --> 02:00:36,060
working off of the levels that was
2629
02:00:36,060 --> 02:00:39,030
formed over here. Okay, so whatever
2630
02:00:39,030 --> 02:00:41,460
timeframe this pattern forms in, okay,
2631
02:00:41,460 --> 02:00:43,380
you're gonna be utilizing again same
2632
02:00:43,380 --> 02:00:45,480
premise of key support resistance. This
2633
02:00:45,480 --> 02:00:47,610
will be another continuation pattern off
2634
02:00:47,610 --> 02:00:49,770
of what would be expected as a climax
2635
02:00:49,770 --> 02:00:52,830
reversal by setup down here, off of a
2636
02:00:52,890 --> 02:00:57,090
higher level timeframe key support. When
2637
02:00:57,090 --> 02:00:59,550
the secondary buy scenario happens here
2638
02:00:59,550 --> 02:01:02,340
or It just makes one. Okay, there's
2639
02:01:02,340 --> 02:01:04,530
that's why these two boxes are blue.
2640
02:01:04,980 --> 02:01:08,790
Generally, it can be one or two small
2641
02:01:08,790 --> 02:01:10,500
little pauses or consolidations and then
2642
02:01:10,530 --> 02:01:13,380
there's a explosive move up to take out
2643
02:01:13,710 --> 02:01:16,200
the highs above the first consolidation.
2644
02:01:16,380 --> 02:01:19,620
Okay? And the premise is this, the
2645
02:01:19,650 --> 02:01:22,140
market makers start building up orders
2646
02:01:22,140 --> 02:01:23,760
in here, okay, and the whole price
2647
02:01:23,760 --> 02:01:26,190
within a clearly defined range. There's
2648
02:01:26,190 --> 02:01:27,720
not enough buyers that keep it higher
2649
02:01:27,810 --> 02:01:29,700
and there's not enough sellers to take
2650
02:01:29,700 --> 02:01:32,190
it lower. So what'll happen is is market
2651
02:01:32,190 --> 02:01:33,600
makers keep it in a tight range, so
2652
02:01:33,600 --> 02:01:36,150
accumulate positions, okay. Now, what
2653
02:01:36,150 --> 02:01:38,850
they want is to hold the market in a
2654
02:01:38,850 --> 02:01:39,780
holding pattern
2655
02:01:41,100 --> 02:01:44,940
to establish a premise for them to take
2656
02:01:44,940 --> 02:01:47,790
the market the other way. Same thing can
2657
02:01:47,790 --> 02:01:49,770
be seen here just in reverse on a market
2658
02:01:49,770 --> 02:01:51,930
maker sell model. We have a
2659
02:01:51,930 --> 02:01:55,800
consolidation and The move comes out of
2660
02:01:55,800 --> 02:01:58,050
the consolidation and the highs of that
2661
02:01:58,080 --> 02:01:59,970
consolidation are usually reached.
2662
02:02:00,000 --> 02:02:02,610
tested. Now, again, that doesn't always
2663
02:02:02,610 --> 02:02:04,650
have to happen like that, but we expect
2664
02:02:04,650 --> 02:02:06,360
it to happen. If it doesn't come back
2665
02:02:06,360 --> 02:02:08,160
down at least many times, it'll give you
2666
02:02:08,160 --> 02:02:10,290
some kind of a small little pause in
2667
02:02:10,290 --> 02:02:12,210
here or maybe a bull flag formation type
2668
02:02:12,210 --> 02:02:14,430
thing. And then it will rally up into a
2669
02:02:14,430 --> 02:02:17,490
clearly defined resistance level. inside
2670
02:02:17,490 --> 02:02:18,870
of that resistance level, there will be
2671
02:02:18,870 --> 02:02:22,050
a climax reversal pattern. Okay? Many
2672
02:02:22,050 --> 02:02:24,780
times you'll see, okay, here's a little
2673
02:02:24,840 --> 02:02:27,180
notepad moment for you. If you want to
2674
02:02:27,180 --> 02:02:29,430
see when indicators work, like they do
2675
02:02:29,430 --> 02:02:31,590
in the textbooks, okay, if you see this
2676
02:02:31,590 --> 02:02:33,990
pattern here, unfolding like this and
2677
02:02:33,990 --> 02:02:36,330
trades up into a resistance level, many
2678
02:02:36,330 --> 02:02:38,100
times you're going to see your standard
2679
02:02:38,130 --> 02:02:41,430
divergence of the MACD your stochastics
2680
02:02:41,460 --> 02:02:45,330
or RSI, your CCI, you know, spaghetti,
2681
02:02:45,570 --> 02:02:47,670
whatever it is you use for your
2682
02:02:47,670 --> 02:02:50,310
indicators. If it causes a divergence
2683
02:02:50,310 --> 02:02:52,200
for a buy or sell signal, you're going
2684
02:02:52,200 --> 02:02:55,110
to see it form here. Okay, and because
2685
02:02:55,110 --> 02:02:57,030
think about if this if these indicators
2686
02:02:57,690 --> 02:03:00,000
didn't call major moves would never
2687
02:03:00,000 --> 02:03:01,710
We're paying attention to them. And the
2688
02:03:01,710 --> 02:03:03,090
only reason why we pay attention to them
2689
02:03:03,330 --> 02:03:04,740
is because they work on the left side of
2690
02:03:04,740 --> 02:03:07,740
the chart. We can see it did it the last
2691
02:03:07,740 --> 02:03:09,180
time, right? So it's going to do it
2692
02:03:09,180 --> 02:03:11,700
again. But nobody understands the
2693
02:03:12,330 --> 02:03:15,270
reasons behind why diverged, okay, and
2694
02:03:15,270 --> 02:03:17,490
it's based on the higher timeframe
2695
02:03:17,550 --> 02:03:19,410
resistance level, and the fact that the
2696
02:03:19,470 --> 02:03:21,960
dealers, market makers are taking price
2697
02:03:21,960 --> 02:03:24,270
up there in a stab that price level over
2698
02:03:24,270 --> 02:03:26,790
and over and over again, to distribute
2699
02:03:27,060 --> 02:03:29,160
the orders that were accumulated here.
2700
02:03:29,730 --> 02:03:31,710
Okay, so they're buying it all up in
2701
02:03:31,710 --> 02:03:33,630
here. Okay, they're distributing a
2702
02:03:33,630 --> 02:03:35,700
little bit here. They're distributing a
2703
02:03:35,700 --> 02:03:37,590
whole lot of it here to dumping it.
2704
02:03:37,950 --> 02:03:39,270
Okay. And then when the market pulls
2705
02:03:39,270 --> 02:03:41,970
back, a lot of traders view this area as
2706
02:03:42,090 --> 02:03:43,650
another continuation pattern much in the
2707
02:03:43,650 --> 02:03:45,630
same way it does here. Okay, well, maybe
2708
02:03:45,630 --> 02:03:48,000
this is a bull flag, okay. And what
2709
02:03:48,000 --> 02:03:49,170
they'll do is they'll buy it with the
2710
02:03:49,170 --> 02:03:50,550
expectation is going to continue moving
2711
02:03:50,550 --> 02:03:52,530
on higher. What will happen is they'll
2712
02:03:52,530 --> 02:03:54,810
have buy orders, you know, in the small
2713
02:03:54,810 --> 02:03:56,550
little areas of dealing ranges that
2714
02:03:56,550 --> 02:03:58,620
we're going to discuss later on. And
2715
02:03:58,650 --> 02:04:00,000
what will happen is they'll pair orders
2716
02:04:00,000 --> 02:04:04,050
up and stack up all kinds of shorting
2717
02:04:04,590 --> 02:04:06,540
opportunities, and they'll distribute
2718
02:04:06,540 --> 02:04:08,280
the market very heavily, and will happen
2719
02:04:08,280 --> 02:04:10,860
is once they get a block of trades on
2720
02:04:10,860 --> 02:04:12,300
the other side of their position,
2721
02:04:12,330 --> 02:04:15,480
essentially, they will do a real quick
2722
02:04:15,480 --> 02:04:18,180
repricing and it'll trap traders and
2723
02:04:18,180 --> 02:04:19,230
what will happen is, is that you've,
2724
02:04:19,260 --> 02:04:20,520
you've done this before, you know
2725
02:04:20,520 --> 02:04:21,600
exactly what I'm talking about even
2726
02:04:21,600 --> 02:04:24,810
those guys in demos. You put a trade on,
2727
02:04:25,290 --> 02:04:26,670
okay, maybe you bought it up in here or
2728
02:04:26,670 --> 02:04:28,560
something like that. Okay. And the
2729
02:04:28,560 --> 02:04:30,570
market drops down hard, okay. And you're
2730
02:04:30,570 --> 02:04:32,010
thinking, Okay, well, maybe it's just
2731
02:04:32,160 --> 02:04:33,480
gonna come down here and retest some
2732
02:04:34,080 --> 02:04:36,480
resistance, turn support, and then
2733
02:04:36,480 --> 02:04:38,580
resume. Can you start seeing this little
2734
02:04:38,910 --> 02:04:40,590
pop up here and you get excited? Okay,
2735
02:04:40,590 --> 02:04:41,760
I'm getting to go back to break even.
2736
02:04:42,480 --> 02:04:44,760
But the dealers know that. Okay, the
2737
02:04:44,760 --> 02:04:46,620
market makers already have these folks
2738
02:04:46,620 --> 02:04:48,450
trapped, and if you went on there and
2739
02:04:48,450 --> 02:04:50,100
you bought your trap just like they are,
2740
02:04:50,550 --> 02:04:51,510
they don't want to give you an
2741
02:04:51,510 --> 02:04:53,340
opportunity to get out of that trade.
2742
02:04:53,490 --> 02:04:55,590
Okay? They're going to keep you on a
2743
02:04:55,590 --> 02:04:57,930
negative float. Okay, you're going to be
2744
02:04:57,930 --> 02:05:00,930
below the dealership. Right. Okay and
2745
02:05:00,930 --> 02:05:03,570
maybe even pips you in negative beyond
2746
02:05:03,570 --> 02:05:05,460
that. Okay. And what will happen is
2747
02:05:05,460 --> 02:05:06,870
they'll do another repricing and now
2748
02:05:06,870 --> 02:05:07,830
here's what you're going to do is okay,
2749
02:05:07,830 --> 02:05:09,180
well, we're just retesting this whole
2750
02:05:09,180 --> 02:05:11,310
area in here again, and we're gonna find
2751
02:05:11,310 --> 02:05:12,840
some support, but it blows through it.
2752
02:05:13,380 --> 02:05:16,350
Okay. The dealers will go into another
2753
02:05:16,350 --> 02:05:17,880
consolidation thinking, Okay, well, I
2754
02:05:17,880 --> 02:05:19,680
know what this is. This is one of those
2755
02:05:19,680 --> 02:05:21,360
retracements where from the low up to
2756
02:05:21,360 --> 02:05:23,580
this high, we got one of those ICT
2757
02:05:23,580 --> 02:05:27,480
optimal trade entries. Nope, not here.
2758
02:05:27,600 --> 02:05:28,980
What will happen is, is there though,
2759
02:05:29,040 --> 02:05:30,750
one more time, they'll run it got lower,
2760
02:05:30,750 --> 02:05:31,950
and they'll take out the stops that are
2761
02:05:31,950 --> 02:05:33,900
placed on the folks that were right,
2762
02:05:33,930 --> 02:05:35,610
that bought this rally here and just
2763
02:05:35,610 --> 02:05:37,980
held on for too long. Okay, so there is
2764
02:05:37,980 --> 02:05:40,560
an accumulation, some distribution here
2765
02:05:40,560 --> 02:05:44,100
or re cumulation for new Long's. Okay,
2766
02:05:44,100 --> 02:05:45,060
and then when they get up here, they
2767
02:05:45,060 --> 02:05:47,310
distribute all of this in here, but they
2768
02:05:47,310 --> 02:05:48,990
do it very quickly. That's why when you
2769
02:05:48,990 --> 02:05:50,940
get up to these levels, price doesn't
2770
02:05:50,940 --> 02:05:52,740
stay up there very long. Why? Because
2771
02:05:52,740 --> 02:05:54,780
they're doing a massive distribution.
2772
02:05:55,260 --> 02:05:56,940
And you see the price really drop off
2773
02:05:56,940 --> 02:05:59,010
fast, but when it drops off, it'll do
2774
02:05:59,040 --> 02:06:00,600
give you a little bit of consulting One
2775
02:06:00,600 --> 02:06:02,100
more rally up when it gets on the other
2776
02:06:02,100 --> 02:06:05,100
side of that, that zenith of this price
2777
02:06:05,100 --> 02:06:08,070
move. When we get to this start rallying
2778
02:06:08,070 --> 02:06:09,930
up, this is where you start selling,
2779
02:06:10,050 --> 02:06:11,670
okay? And when you can identify this
2780
02:06:11,670 --> 02:06:13,650
pattern, it makes your trading a whole
2781
02:06:13,650 --> 02:06:15,120
lot easier because you understand what
2782
02:06:15,120 --> 02:06:16,650
they're doing and where they're taking
2783
02:06:16,650 --> 02:06:17,130
price.
2784
02:06:25,470 --> 02:06:27,630
Okay, guys, we got some key levels here
2785
02:06:27,630 --> 02:06:30,240
noted on our timeframe of a daily chart.
2786
02:06:30,930 --> 02:06:32,580
And we're gonna give some examples of
2787
02:06:32,610 --> 02:06:34,200
what is a market maker profile. I'm
2788
02:06:34,200 --> 02:06:36,540
gonna give you a by example, and some
2789
02:06:36,570 --> 02:06:40,440
sell examples. And we utilize them as
2790
02:06:40,440 --> 02:06:42,540
obviously you have a higher time frame
2791
02:06:42,720 --> 02:06:44,100
support resistance level, but they can
2792
02:06:44,100 --> 02:06:46,530
occur on any timeframe, but the more apt
2793
02:06:46,530 --> 02:06:50,040
to occur on a daily four hour and or
2794
02:06:50,100 --> 02:06:53,310
hourly timeframe. And then if you have a
2795
02:06:53,400 --> 02:06:54,810
understanding of what their directional
2796
02:06:54,810 --> 02:06:57,180
premises want to lower timeframes, you
2797
02:06:57,180 --> 02:07:00,330
can use them on one 515 minutes. 30
2798
02:07:00,330 --> 02:07:02,940
minutes and hourly charts and such. But
2799
02:07:02,970 --> 02:07:04,080
for now, we're just going to give you
2800
02:07:04,080 --> 02:07:06,420
examples on firing off of a daily
2801
02:07:06,420 --> 02:07:10,830
timeframe. See price trades down into
2802
02:07:10,830 --> 02:07:13,560
this level here is old support. And all
2803
02:07:13,560 --> 02:07:16,590
we did was round it to a 127 60 level,
2804
02:07:16,620 --> 02:07:18,330
we just calibrated the level to a round
2805
02:07:18,360 --> 02:07:20,820
number. We're gonna look at this area
2806
02:07:20,820 --> 02:07:23,880
here for a buying market profile for
2807
02:07:23,910 --> 02:07:26,340
market maker profile. And then we have
2808
02:07:26,340 --> 02:07:28,650
one in here trading into this resistance
2809
02:07:28,650 --> 02:07:31,140
level. Okay, and then we're going to go
2810
02:07:31,140 --> 02:07:34,260
and look at the sell scenario. We call
2811
02:07:34,260 --> 02:07:36,810
it in the last video and how it was a
2812
02:07:36,840 --> 02:07:39,900
market maker sell model. Okay, so we're
2813
02:07:39,900 --> 02:07:41,190
going to do is we're going to look at
2814
02:07:41,190 --> 02:07:44,970
this particular day, and the actual
2815
02:07:44,970 --> 02:07:52,290
candle comes in at July 9 2013. And
2816
02:07:52,290 --> 02:07:53,430
we're going to start with an hourly
2817
02:07:53,430 --> 02:07:58,020
perspective on it. Okay, and all I did
2818
02:07:58,020 --> 02:08:00,660
was use this to highlight the time Okay
2819
02:08:00,660 --> 02:08:01,380
we have
2820
02:08:07,830 --> 02:08:15,630
okay marketing, consolidation okay we
2821
02:08:15,630 --> 02:08:20,190
have a consolidation here, market breaks
2822
02:08:20,220 --> 02:08:22,140
out of consolidation and retest that
2823
02:08:22,140 --> 02:08:24,960
same consolidation here trades lower
2824
02:08:25,530 --> 02:08:27,840
okay and there's a couple minor little
2825
02:08:27,840 --> 02:08:30,030
retracement to get in sync with that
2826
02:08:30,030 --> 02:08:33,420
move lower, making the actual low here
2827
02:08:33,840 --> 02:08:36,540
and then the false swing lower. This is
2828
02:08:36,540 --> 02:08:40,590
the actual high I'm sorry, the actual
2829
02:08:40,590 --> 02:08:45,570
low point of the market maker sell model
2830
02:08:46,230 --> 02:08:48,960
in here. Okay, and then price rallies
2831
02:08:48,960 --> 02:08:53,310
through, takes out this high here and
2832
02:08:53,310 --> 02:08:55,890
very little pausing it all in here just
2833
02:08:55,890 --> 02:08:59,580
explodes and where's it explode to above
2834
02:08:59,610 --> 02:09:03,090
the console? In here, okay. So again,
2835
02:09:03,090 --> 02:09:06,390
the same price model, here in this
2836
02:09:06,390 --> 02:09:09,690
fractal pattern is seen on a hourly
2837
02:09:09,690 --> 02:09:13,680
basis. You can see ultimately, it comes
2838
02:09:13,680 --> 02:09:16,920
back and trades even further. If we go
2839
02:09:16,920 --> 02:09:20,580
and look at a daily chart again and
2840
02:09:20,580 --> 02:09:22,770
we're going to look at this example here
2841
02:09:23,250 --> 02:09:29,070
for a sell. Okay, right in here, and I'm
2842
02:09:29,070 --> 02:09:32,040
going to zoom in so you can see this
2843
02:09:32,040 --> 02:09:36,480
candle right there. Okay, the levels of
2844
02:09:36,510 --> 02:09:38,400
key support resistance on a higher
2845
02:09:38,400 --> 02:09:40,620
timeframe would be noted in advance as
2846
02:09:40,620 --> 02:09:42,180
as price trades up into it, we would
2847
02:09:42,180 --> 02:09:44,100
expect to see market makers so model
2848
02:09:44,100 --> 02:09:47,070
unfold. And let's go down to a 15
2849
02:09:47,070 --> 02:09:47,400
minute.
2850
02:09:53,460 --> 02:09:55,680
Okay, you see that happening here and
2851
02:09:55,680 --> 02:09:57,210
let's actually go down to a five minute
2852
02:09:58,110 --> 02:10:02,040
see a little bit better. And just take
2853
02:10:02,040 --> 02:10:03,600
this rectangle off because it's no
2854
02:10:03,600 --> 02:10:10,230
longer needed. Okay, we have the
2855
02:10:10,230 --> 02:10:15,030
consolidation, move out of the
2856
02:10:15,030 --> 02:10:17,160
consolidation and then retest. Now this
2857
02:10:17,160 --> 02:10:20,070
part does not have to happen. Okay. But
2858
02:10:20,070 --> 02:10:21,870
generally you'll see it happen. And then
2859
02:10:21,870 --> 02:10:24,030
there's a continuation moving up, makes
2860
02:10:24,030 --> 02:10:29,130
the high or the capitulation portion of
2861
02:10:29,130 --> 02:10:32,130
the buy model. Now it turns to the sell
2862
02:10:32,130 --> 02:10:35,190
side of it. Okay, so we are now in a
2863
02:10:35,190 --> 02:10:38,310
market maker, sell model profile. And we
2864
02:10:38,310 --> 02:10:40,440
would expect to see this consolidation
2865
02:10:40,470 --> 02:10:43,590
ran out, as you see here, market moves
2866
02:10:43,590 --> 02:10:45,510
down, consolidation on here, another
2867
02:10:45,510 --> 02:10:48,270
break lower, where's it trade to below
2868
02:10:48,720 --> 02:10:50,400
the consolidation where cumulated
2869
02:10:50,400 --> 02:10:54,240
positions were taken on? And you can see
2870
02:10:54,240 --> 02:10:56,970
ultimately, that's the price model right
2871
02:10:56,970 --> 02:10:59,970
there. Okay, and it's go back out to it.
2872
02:11:02,070 --> 02:11:05,760
Okay, we're going to look at the 134 30
2873
02:11:05,760 --> 02:11:08,520
level. Okay, see this high here, the
2874
02:11:08,520 --> 02:11:10,050
lows in here and the bodies that have
2875
02:11:10,050 --> 02:11:13,380
candles as well. So we have 134 30 small
2876
02:11:13,380 --> 02:11:16,110
round number. It's just above this high
2877
02:11:16,110 --> 02:11:20,130
as well. And we're going to zoom in and
2878
02:11:20,130 --> 02:11:25,740
look at this profile right here and as
2879
02:11:25,740 --> 02:11:27,840
price moves up into these levels, we
2880
02:11:27,840 --> 02:11:29,220
would reasonably expect to see a market
2881
02:11:29,220 --> 02:11:31,620
maker sell model. We're going to into an
2882
02:11:31,830 --> 02:11:39,120
hourly timeframe. You Yeah, and we're
2883
02:11:39,120 --> 02:11:42,330
going to zoom out. Okay, we can see the
2884
02:11:42,330 --> 02:11:44,640
consolidation. Let's take these vertical
2885
02:11:44,640 --> 02:11:48,090
lines off cleaned up a little bit. You
2886
02:11:48,090 --> 02:11:51,840
can see the consolidation in here.
2887
02:11:55,020 --> 02:11:57,780
consolidated, moved out came back
2888
02:11:57,870 --> 02:12:00,990
retested the consolidation moved on up,
2889
02:12:02,190 --> 02:12:06,570
false rally higher, breaks down, rallies
2890
02:12:06,570 --> 02:12:11,520
on again on the other side. And again,
2891
02:12:11,520 --> 02:12:16,170
this is sell model. So again, this is
2892
02:12:16,170 --> 02:12:18,540
the sell model. So you're gonna see
2893
02:12:26,340 --> 02:12:28,470
price run out this consolidation on the
2894
02:12:28,470 --> 02:12:30,750
line and you see that happen there.
2895
02:12:31,410 --> 02:12:34,710
Okay, so that's the market maker sell
2896
02:12:34,710 --> 02:12:36,750
model. And again, we call this market
2897
02:12:36,750 --> 02:12:39,060
lower here before the actual move
2898
02:12:39,060 --> 02:12:42,540
ensued, given some further credibility
2899
02:12:42,540 --> 02:12:44,370
to the analysis concepts and it's not
2900
02:12:44,370 --> 02:12:45,390
always hindsight here.
2901
02:12:51,630 --> 02:12:55,140
Alright, let's talk about market orders
2902
02:12:55,620 --> 02:12:59,250
and how dealers work within the
2903
02:12:59,250 --> 02:13:03,360
marketplace. how they perceive traders,
2904
02:13:03,390 --> 02:13:05,790
psychology and how you can pretty much
2905
02:13:05,790 --> 02:13:07,410
get close to what they're doing without
2906
02:13:07,410 --> 02:13:09,750
even seeing the order books. Alright,
2907
02:13:09,750 --> 02:13:12,030
we're looking at a conceptual idea of
2908
02:13:12,030 --> 02:13:14,160
what market prices right now. And we're
2909
02:13:14,160 --> 02:13:15,210
not going to have a chart we're just
2910
02:13:15,210 --> 02:13:17,400
going to conceptually talk about the
2911
02:13:17,400 --> 02:13:20,070
generic principles associated with how
2912
02:13:20,100 --> 02:13:24,810
reading the market. Alright, let's
2913
02:13:24,810 --> 02:13:26,310
assume for a moment, the market price
2914
02:13:26,310 --> 02:13:28,440
moves up to what we considered a key
2915
02:13:28,470 --> 02:13:31,200
level, okay? Or could be moving down to
2916
02:13:31,200 --> 02:13:32,520
a key level doesn't matter. But we're
2917
02:13:32,520 --> 02:13:34,560
saying for the moment right now, we are
2918
02:13:34,560 --> 02:13:37,440
trading at a highly sensitive price
2919
02:13:37,440 --> 02:13:40,950
point that reacted. Most recently, or
2920
02:13:40,950 --> 02:13:43,020
maybe a couple weeks ago, there was a
2921
02:13:43,020 --> 02:13:44,760
significant reaction that same price
2922
02:13:44,760 --> 02:13:47,580
level. So now market moves, whether it
2923
02:13:47,580 --> 02:13:49,290
be up or down, we now have a market
2924
02:13:49,290 --> 02:13:51,000
price that's equal to or very close to
2925
02:13:51,000 --> 02:13:53,370
that key level. The question comes to
2926
02:13:53,370 --> 02:13:55,770
mind is where do we go from here? Do we
2927
02:13:55,770 --> 02:13:59,250
move higher? Or do we move lower when
2928
02:13:59,250 --> 02:14:00,720
you're watching What you're going to be
2929
02:14:00,720 --> 02:14:03,390
looking for are clues. Okay? There's
2930
02:14:03,390 --> 02:14:06,360
going to be a fingerprint, if you will,
2931
02:14:06,660 --> 02:14:10,020
of what may be unfolding. And generally
2932
02:14:10,020 --> 02:14:13,170
what happens is above the market price,
2933
02:14:13,290 --> 02:14:16,560
okay? There are protective buy stops on
2934
02:14:16,560 --> 02:14:19,260
those that have maybe put on net short
2935
02:14:19,260 --> 02:14:22,890
positions. And many times simply above
2936
02:14:22,890 --> 02:14:24,630
that slow bit more, there's going to be
2937
02:14:24,630 --> 02:14:26,670
pending sell limit orders for those that
2938
02:14:26,670 --> 02:14:29,490
have been possibly being long. Okay,
2939
02:14:29,610 --> 02:14:31,200
number two, we have net long traders in
2940
02:14:31,200 --> 02:14:32,640
the market. And we have net short
2941
02:14:32,640 --> 02:14:35,190
traders in the market. The net trader,
2942
02:14:36,030 --> 02:14:38,760
on the short side, want to protect your
2943
02:14:38,760 --> 02:14:40,350
position, so they're going to have their
2944
02:14:40,350 --> 02:14:43,140
protective buy stops somewhere above the
2945
02:14:43,140 --> 02:14:46,440
market price. And again, the premise is,
2946
02:14:46,440 --> 02:14:48,180
is this market price is now trading at a
2947
02:14:48,180 --> 02:14:51,360
key level. Okay. And because traders
2948
02:14:51,360 --> 02:14:54,870
always have a differing view, if even if
2949
02:14:54,870 --> 02:14:58,950
the marketplace is a implied support
2950
02:14:58,950 --> 02:15:03,570
level folks may be really looking to
2951
02:15:04,170 --> 02:15:06,090
sell short. Okay, and we're going to
2952
02:15:06,090 --> 02:15:08,220
talk about that in a moment. But for
2953
02:15:08,220 --> 02:15:10,740
those that have saw this level as a
2954
02:15:10,740 --> 02:15:13,590
potential support zone, and they want to
2955
02:15:13,590 --> 02:15:15,690
be expecting some kind of a bounce up,
2956
02:15:16,140 --> 02:15:18,090
they would have pending sell limit
2957
02:15:18,090 --> 02:15:19,800
orders to exit some of their position
2958
02:15:19,800 --> 02:15:23,010
and or all of it to for profit. And then
2959
02:15:23,010 --> 02:15:25,980
obviously, folks that expect to see it
2960
02:15:26,220 --> 02:15:28,290
go up only if it proves a little bit
2961
02:15:28,290 --> 02:15:30,450
more that it's going to move upwards.
2962
02:15:30,720 --> 02:15:33,900
They'll have a new long buy, stop. Okay,
2963
02:15:33,900 --> 02:15:35,160
so in other words, we have three types
2964
02:15:35,160 --> 02:15:37,950
of orders. that exists generally above
2965
02:15:38,040 --> 02:15:39,930
current market price, that being
2966
02:15:40,020 --> 02:15:42,150
pending, sell limit orders for those
2967
02:15:42,150 --> 02:15:44,970
that are net long, protective buy stops
2968
02:15:44,970 --> 02:15:48,330
on those that are net short, and new
2969
02:15:48,360 --> 02:15:50,700
potential buy stops for those that want
2970
02:15:50,700 --> 02:15:55,500
to enter on buying strength. On the
2971
02:15:55,530 --> 02:15:57,630
converse side, obviously you have for
2972
02:15:57,630 --> 02:16:00,810
those that are buying this At this
2973
02:16:00,810 --> 02:16:02,460
particular price level, you have
2974
02:16:02,460 --> 02:16:04,290
protective cell stops protecting what
2975
02:16:04,320 --> 02:16:07,260
they believe there's a potential by
2976
02:16:07,290 --> 02:16:10,740
scenario unfolding. Then you have stem
2977
02:16:10,860 --> 02:16:12,480
cell stops that are resting below the
2978
02:16:12,480 --> 02:16:15,780
market price for new short selling. So
2979
02:16:15,780 --> 02:16:16,890
other words they want to sell on
2980
02:16:16,890 --> 02:16:19,410
weakness. And below that, usually you'll
2981
02:16:19,410 --> 02:16:23,100
have pending limit orders to be you
2982
02:16:23,100 --> 02:16:26,730
tripped for covering short positions,
2983
02:16:26,820 --> 02:16:28,260
okay? In other words, they're using that
2984
02:16:28,440 --> 02:16:30,960
type of ordered exit on a profit target
2985
02:16:30,960 --> 02:16:34,920
objective for short positions. The
2986
02:16:34,920 --> 02:16:38,730
question is, where are we most likely
2987
02:16:39,000 --> 02:16:43,080
building up orders, okay. And it's very
2988
02:16:44,340 --> 02:16:45,780
tricky in the beginning because you have
2989
02:16:45,780 --> 02:16:47,280
to spend some time looking at charts.
2990
02:16:47,340 --> 02:16:48,870
Okay, this is going to come with time.
2991
02:16:49,350 --> 02:16:51,360
And when you hear me talk about and a
2992
02:16:51,360 --> 02:16:52,500
lot of times that you'll hear me in my
2993
02:16:52,530 --> 02:16:54,420
market review videos, or sometimes in my
2994
02:16:54,420 --> 02:16:58,770
teaching videos, many times I'll talk
2995
02:16:59,490 --> 02:17:03,900
out loud Okay, my thought process isn't
2996
02:17:03,900 --> 02:17:06,630
always meant for you to
2997
02:17:07,890 --> 02:17:10,740
be taught what I'm always speaking.
2998
02:17:10,920 --> 02:17:13,050
Okay? In other words, I may be thinking
2999
02:17:13,050 --> 02:17:16,200
out loud about a phenomenon that may be
3000
02:17:16,350 --> 02:17:19,020
unfolding at a particular level, okay?
3001
02:17:19,410 --> 02:17:21,570
And I'm not really meaning to teach that
3002
02:17:21,570 --> 02:17:23,040
to you, because it's something that
3003
02:17:23,040 --> 02:17:24,960
you're going to have to drill over top
3004
02:17:24,960 --> 02:17:27,300
of charts to learn on your own. Okay?
3005
02:17:27,660 --> 02:17:29,850
And this is the part of the experience
3006
02:17:29,850 --> 02:17:32,250
factor that comes into play, and why
3007
02:17:32,250 --> 02:17:34,380
patience is so important, because if you
3008
02:17:34,380 --> 02:17:36,270
don't have patience, you won't give
3009
02:17:36,270 --> 02:17:37,920
yourself the time to develop this neck
3010
02:17:37,920 --> 02:17:39,900
because that's exactly what this is. I
3011
02:17:39,900 --> 02:17:42,420
don't have an order book. I don't have
3012
02:17:42,750 --> 02:17:45,720
access to you know what these orders are
3013
02:17:45,720 --> 02:17:47,010
outside of what everybody else has on a
3014
02:17:47,010 --> 02:17:49,830
retail level. Okay. I can make phone
3015
02:17:49,830 --> 02:17:51,990
calls and ask where orders are stacking
3016
02:17:51,990 --> 02:17:54,150
up, but it's only really limited to a
3017
02:17:54,150 --> 02:17:56,130
certain portion of the actual
3018
02:17:56,130 --> 02:18:00,270
marketplace. So the psychology Behind
3019
02:18:00,270 --> 02:18:02,730
price action is very readable. Okay? And
3020
02:18:02,730 --> 02:18:05,820
it's by using these simple six types of
3021
02:18:05,820 --> 02:18:09,000
orders around market price. Obviously,
3022
02:18:09,000 --> 02:18:11,580
if prices moved up to a resistance
3023
02:18:11,580 --> 02:18:14,910
level, okay, one would expect new
3024
02:18:14,910 --> 02:18:16,380
sellers to come into place and then
3025
02:18:16,380 --> 02:18:17,670
there'd be protective buy stops
3026
02:18:17,700 --> 02:18:19,590
established, and those that have been
3027
02:18:19,620 --> 02:18:21,210
net long, they want to be getting out of
3028
02:18:21,210 --> 02:18:22,950
their position and they're greedy. They
3029
02:18:22,950 --> 02:18:24,120
want to be trying to get that extra
3030
02:18:24,120 --> 02:18:25,920
little bit of drops of lemon juice out
3031
02:18:25,920 --> 02:18:27,090
of that limit, they want to squeeze it
3032
02:18:27,090 --> 02:18:28,770
for all it's worth. So let's try to put
3033
02:18:28,770 --> 02:18:32,580
their limit orders on the far side of
3034
02:18:33,000 --> 02:18:34,740
the particular resistance level, okay,
3035
02:18:34,740 --> 02:18:36,660
because it's greed, this market unlike
3036
02:18:36,660 --> 02:18:38,490
anything else is a breeding ground for
3037
02:18:38,490 --> 02:18:41,850
greed. And obviously, those that have
3038
02:18:41,850 --> 02:18:43,560
been, you know, just introduced to the
3039
02:18:43,560 --> 02:18:44,730
marketplace they've been seeing the
3040
02:18:44,730 --> 02:18:46,350
market go up for nine days straight so
3041
02:18:46,350 --> 02:18:47,550
therefore if it goes up a little bit
3042
02:18:47,550 --> 02:18:49,800
higher, that's when they want to buy and
3043
02:18:49,800 --> 02:18:51,000
that's generally what happens is they
3044
02:18:51,000 --> 02:18:52,650
buy too high the market, okay, and I've
3045
02:18:52,650 --> 02:18:53,910
been there I know what it's all about,
3046
02:18:53,910 --> 02:18:55,710
and none of it feels like so, and you
3047
02:18:55,710 --> 02:18:58,980
probably do too. If we had seen market,
3048
02:18:59,370 --> 02:19:01,380
price trading down to a key support
3049
02:19:01,380 --> 02:19:04,620
level, okay, those that are entering in
3050
02:19:04,680 --> 02:19:07,020
on whatever we implied as a buy signal
3051
02:19:07,020 --> 02:19:09,390
for them, they would immediately put
3052
02:19:09,390 --> 02:19:11,040
protective sell stop below the market
3053
02:19:11,040 --> 02:19:13,470
price. And then obviously, for those
3054
02:19:13,470 --> 02:19:16,200
that have been net short, okay, they
3055
02:19:16,200 --> 02:19:18,540
have their limit orders below market
3056
02:19:18,540 --> 02:19:20,490
price trying to get out, you know, with
3057
02:19:20,490 --> 02:19:23,430
their greedy, you know, expectations of
3058
02:19:23,430 --> 02:19:26,700
getting out near a very handsome price
3059
02:19:26,700 --> 02:19:28,920
level to profit from. And again the same
3060
02:19:28,920 --> 02:19:30,450
guys that have been just introduced to
3061
02:19:30,450 --> 02:19:31,800
the marketplace, you know, for the last
3062
02:19:31,800 --> 02:19:35,250
25 days in the market places have been
3063
02:19:35,250 --> 02:19:37,080
seeing lower prices. So therefore, if it
3064
02:19:37,080 --> 02:19:38,160
goes down a little bit farther, then
3065
02:19:38,160 --> 02:19:40,110
they'll sell short and they'll have cell
3066
02:19:40,110 --> 02:19:41,550
stops down there because they can't move
3067
02:19:41,550 --> 02:19:43,140
around the trading desk because they're
3068
02:19:43,140 --> 02:19:45,270
working at you know, whatever they're
3069
02:19:45,270 --> 02:19:47,910
doing, you know, you're painting cars,
3070
02:19:48,210 --> 02:19:49,770
so they want to have their cell stops
3071
02:19:49,770 --> 02:19:51,330
below the marketplace and in many times
3072
02:19:51,330 --> 02:19:53,430
you see them selling the low of the day.
3073
02:19:56,250 --> 02:19:58,380
So let's talk about a little bit more
3074
02:19:58,380 --> 02:20:02,520
detail of it. market makers pair orders
3075
02:20:03,000 --> 02:20:07,260
and how orders stack. Let's assume for a
3076
02:20:07,260 --> 02:20:09,480
moment that there is a highly sensitive
3077
02:20:09,660 --> 02:20:12,810
price level of support or resistance
3078
02:20:12,870 --> 02:20:16,590
around that 132. Big figure. Now when we
3079
02:20:16,590 --> 02:20:19,470
look at a big figure, okay, and before I
3080
02:20:19,470 --> 02:20:21,540
go any further, this could be a mid
3081
02:20:21,540 --> 02:20:24,660
figure. Okay. And then obviously the
3082
02:20:24,660 --> 02:20:27,120
levels above it being respective in
3083
02:20:27,120 --> 02:20:28,500
terms of what we have here as an
3084
02:20:28,500 --> 02:20:31,530
example, but keeping in true form of the
3085
02:20:31,530 --> 02:20:32,850
institutional levels we like to follow,
3086
02:20:32,880 --> 02:20:35,850
which are the big figures, the 20s, the
3087
02:20:35,850 --> 02:20:38,670
80s, the small round numbers, okay, in
3088
02:20:38,670 --> 02:20:42,060
the mid 50 levels, okay, if price trades
3089
02:20:42,180 --> 02:20:46,860
up to 132. Don't expect 130 to always
3090
02:20:46,860 --> 02:20:49,050
simply hold price back. Many times
3091
02:20:49,050 --> 02:20:51,270
you'll see price trade up to that level.
3092
02:20:52,260 --> 02:20:55,380
And there'll be orders around the 10
3093
02:20:55,380 --> 02:20:57,270
level and around the 20 level. Many
3094
02:20:57,270 --> 02:20:58,470
times you'll see price even if it's
3095
02:20:58,470 --> 02:21:00,720
going to go lower, longer term. Many
3096
02:21:00,720 --> 02:21:03,750
times they'll sweep price up through the
3097
02:21:03,750 --> 02:21:06,660
10s and 20s. And the reason why is
3098
02:21:06,660 --> 02:21:09,780
because folks like to put their orders
3099
02:21:10,830 --> 02:21:12,960
at odd numbers and such, okay, but
3100
02:21:12,960 --> 02:21:15,300
really, the institutional level traders,
3101
02:21:15,330 --> 02:21:18,090
they work around small round numbers.
3102
02:21:18,120 --> 02:21:19,950
Okay, the 10s, the 20s,
3103
02:21:20,340 --> 02:21:22,560
they'll they'll use those levels because
3104
02:21:22,560 --> 02:21:24,510
it allows them to clean through
3105
02:21:25,560 --> 02:21:28,440
particular price levels. And maybe
3106
02:21:28,440 --> 02:21:30,480
you've encountered slippage. Okay. In
3107
02:21:30,480 --> 02:21:32,280
other words, you really wanted to get
3108
02:21:32,280 --> 02:21:35,580
out at 130 205. But maybe they filled it
3109
02:21:35,580 --> 02:21:39,540
at 130 to 10. That's slippage. Why did
3110
02:21:39,540 --> 02:21:41,610
they fill you at 130 to 10? Because
3111
02:21:41,610 --> 02:21:44,130
that's where their order was for them to
3112
02:21:44,130 --> 02:21:45,900
execute. So they're going to fill you
3113
02:21:45,930 --> 02:21:48,210
they're not where you really want to get
3114
02:21:48,210 --> 02:21:50,820
out. Okay. It doesn't happen all the
3115
02:21:50,820 --> 02:21:53,760
time. No, but obviously, we as retail
3116
02:21:53,760 --> 02:21:56,430
traders, are at the mercy if you will,
3117
02:21:56,730 --> 02:21:58,230
of what the dealers are going to give us
3118
02:21:58,230 --> 02:22:00,420
as an order. Okay. Maybe you had Trade
3119
02:22:00,420 --> 02:22:03,540
executed and you exit it or entered and
3120
02:22:03,570 --> 02:22:06,450
then you have a recoat later on. Okay,
3121
02:22:06,480 --> 02:22:10,110
maybe you got in a short position at 132
3122
02:22:10,140 --> 02:22:12,540
even. Okay, and then later on found out
3123
02:22:12,540 --> 02:22:17,640
that they quoted you 131 95 or 131 90.
3124
02:22:17,820 --> 02:22:19,620
Okay, that's pretty extreme in terms of
3125
02:22:19,620 --> 02:22:21,480
slippage. But if it's economic report,
3126
02:22:21,750 --> 02:22:23,820
things like that can happen. As a matter
3127
02:22:23,820 --> 02:22:25,980
of fact, you know, I just recently
3128
02:22:25,980 --> 02:22:29,220
traded an economic report, and I had
3129
02:22:29,520 --> 02:22:31,890
seven pips slippage from where I was
3130
02:22:31,890 --> 02:22:33,390
trying to get in, and we're actually got
3131
02:22:33,390 --> 02:22:36,750
filled so you that's the inherent nature
3132
02:22:36,780 --> 02:22:39,600
of trading in fast, illiquid markets,
3133
02:22:39,930 --> 02:22:41,580
and they're gonna fill you where they
3134
02:22:41,580 --> 02:22:43,620
want to get filled. Okay, so you're
3135
02:22:43,620 --> 02:22:44,550
gonna be taking the other side of your
3136
02:22:44,550 --> 02:22:46,140
trade to understand that if you're
3137
02:22:46,140 --> 02:22:49,560
dealing through a market maker or an
3138
02:22:49,560 --> 02:22:52,590
order desk, that's the type of filling
3139
02:22:52,590 --> 02:22:53,850
you're going to get with your orders.
3140
02:22:53,880 --> 02:22:55,860
Okay, but if you think in terms of the
3141
02:22:55,860 --> 02:22:58,860
big picture of how these market makers
3142
02:22:58,860 --> 02:23:03,060
and large Bank dealers and traders work.
3143
02:23:03,450 --> 02:23:04,980
They're going to work around these round
3144
02:23:04,980 --> 02:23:06,630
numbers and always expect them to try to
3145
02:23:06,630 --> 02:23:09,150
sweep to the next small little round
3146
02:23:09,150 --> 02:23:11,250
number because that's generally where
3147
02:23:11,520 --> 02:23:13,440
they'll take price and it'll clean out
3148
02:23:13,440 --> 02:23:15,210
all the guys that want to use a stop
3149
02:23:15,210 --> 02:23:18,480
loss, okay, they maybe sell short at 132
3150
02:23:18,780 --> 02:23:21,150
even want to limit maybe the assault
3151
02:23:21,150 --> 02:23:23,070
price dropped down to 131 90 and they're
3152
02:23:23,070 --> 02:23:24,210
salivating because they think it's going
3153
02:23:24,210 --> 02:23:26,430
to go to 130. Okay, so they put your
3154
02:23:26,430 --> 02:23:30,660
stop loss at 130 203. Okay, well, the
3155
02:23:30,660 --> 02:23:32,670
dealers know that. Okay, they're going
3156
02:23:32,670 --> 02:23:34,380
to take price up and just for good
3157
02:23:34,380 --> 02:23:35,190
measure, we're gonna run it to the
3158
02:23:35,190 --> 02:23:37,290
132 10 level. And then I'll clear out a
3159
02:23:37,290 --> 02:23:39,090
nice block of trades that would have had
3160
02:23:39,330 --> 02:23:40,830
pending orders resting above it, like we
3161
02:23:40,830 --> 02:23:43,170
just discussed in a previous slide, and
3162
02:23:43,410 --> 02:23:44,430
allow them
3163
02:23:44,730 --> 02:23:47,070
to promote liquidity not only for
3164
02:23:47,070 --> 02:23:49,800
themselves, but other orders they have
3165
02:23:49,800 --> 02:23:55,530
to do transactions for Alright, let's
3166
02:23:55,530 --> 02:23:58,860
take a look at an environment where the
3167
02:23:58,860 --> 02:24:02,310
132 perhaps is a clearly discernible
3168
02:24:02,340 --> 02:24:05,820
resistance level. Okay, and we're going
3169
02:24:05,820 --> 02:24:08,220
to assume that market price is down here
3170
02:24:08,250 --> 02:24:11,100
below that particular price level. And
3171
02:24:11,130 --> 02:24:12,210
generally you'll see this type of
3172
02:24:12,210 --> 02:24:13,650
action, okay, they'll take it up to the
3173
02:24:13,650 --> 02:24:17,670
80 level. Okay, and force or retrace,
3174
02:24:17,670 --> 02:24:20,100
pull off very sharply. Okay. And
3175
02:24:20,100 --> 02:24:21,900
everybody understands if you've been
3176
02:24:21,900 --> 02:24:23,400
looking at the markets and in the
3177
02:24:23,430 --> 02:24:26,760
capacity that the 80s the 20s in the 50s
3178
02:24:26,790 --> 02:24:28,680
and full figures are very sensitive
3179
02:24:28,680 --> 02:24:30,750
psychological numbers, okay? And if the
3180
02:24:30,750 --> 02:24:33,750
dealers can bounce price off there,
3181
02:24:33,750 --> 02:24:35,160
they'll trap a lot of traders thinking
3182
02:24:35,160 --> 02:24:37,560
okay that was the high the market then
3183
02:24:37,560 --> 02:24:39,060
what happens though reprice
3184
02:24:40,050 --> 02:24:40,830
Okay, and
3185
02:24:41,040 --> 02:24:43,830
get folks that maybe didn't believe that
3186
02:24:43,830 --> 02:24:45,090
was the high and they think it's still
3187
02:24:45,090 --> 02:24:48,270
going to go to 132. They'll more or less
3188
02:24:48,270 --> 02:24:50,370
buy that market up. Okay. But then what
3189
02:24:50,370 --> 02:24:51,960
I'll do is I'll take the market below
3190
02:24:51,960 --> 02:24:53,970
the most recent swing low and stop those
3191
02:24:53,970 --> 02:24:56,460
traders out. So now, the folks that
3192
02:24:56,460 --> 02:24:58,020
think on a short term that the price is
3193
02:24:58,020 --> 02:25:00,930
going to go to 132 are now scared They
3194
02:25:00,930 --> 02:25:02,490
don't want to get in the market now. So
3195
02:25:02,490 --> 02:25:05,520
they took those individuals out if they
3196
02:25:05,520 --> 02:25:07,560
were taken out when that recent move
3197
02:25:07,560 --> 02:25:09,720
down below the recent swing low here,
3198
02:25:10,620 --> 02:25:13,080
okay, what is below they're going to put
3199
02:25:13,080 --> 02:25:16,410
up what protective sell, okay? If the
3200
02:25:16,410 --> 02:25:18,600
dealers take price down below that that
3201
02:25:18,600 --> 02:25:20,580
sell stop becomes a market or do what
3202
02:25:21,210 --> 02:25:22,920
the sell to market who's going to buy it
3203
02:25:22,920 --> 02:25:25,890
from the dealers, the dealers will buy
3204
02:25:25,890 --> 02:25:28,620
up that pocket of liquidity, okay. And
3205
02:25:28,620 --> 02:25:30,630
then they'll reprice and they'll take it
3206
02:25:30,630 --> 02:25:33,360
up to that 132 figure clearing out the
3207
02:25:33,360 --> 02:25:34,560
stops that would have been resting at
3208
02:25:34,560 --> 02:25:36,690
that 131 90 for those that went short
3209
02:25:36,690 --> 02:25:39,570
here. So now, is there any one short?
3210
02:25:39,600 --> 02:25:41,160
No. Okay.
3211
02:25:41,580 --> 02:25:42,930
So where did they
3212
02:25:43,980 --> 02:25:45,630
where does the dealer's exit their
3213
02:25:45,630 --> 02:25:49,260
position to the accumulated here at the
3214
02:25:49,260 --> 02:25:51,600
131 90 or there abouts because that's
3215
02:25:51,600 --> 02:25:54,750
about rare those stop loss on the short
3216
02:25:54,780 --> 02:25:56,280
the short sellers here would have their
3217
02:25:56,280 --> 02:25:57,930
orders resting so they clear out the
3218
02:25:57,930 --> 02:25:59,070
pending orders and take it all out to
3219
02:25:59,070 --> 02:26:03,180
the 132 figure. The next repricing comes
3220
02:26:03,180 --> 02:26:06,660
in the sell off, folks. Okay, well, this
3221
02:26:06,660 --> 02:26:08,460
is the top of the marketplace. So let's
3222
02:26:08,460 --> 02:26:10,650
start selling. Okay, so they go short
3223
02:26:10,680 --> 02:26:12,570
here. All of a sudden, you'll see the
3224
02:26:12,570 --> 02:26:14,520
dealers take price back up again, now
3225
02:26:14,520 --> 02:26:17,250
clear up to 132. Why? Because the folks
3226
02:26:17,250 --> 02:26:18,930
that have been watching that 132 level,
3227
02:26:19,140 --> 02:26:21,240
wants to trade their one time and starts
3228
02:26:21,240 --> 02:26:22,920
to trade off. They think that's it. It's
3229
02:26:22,920 --> 02:26:25,410
a support resistance is perfect. It
3230
02:26:25,410 --> 02:26:28,650
never never has any blurry lines. it's
3231
02:26:28,650 --> 02:26:31,410
crystal clear, laser guided. Okay, and
3232
02:26:31,410 --> 02:26:32,640
price is always going to stop right on
3233
02:26:32,640 --> 02:26:35,220
that 00 level. It doesn't guys, you got
3234
02:26:35,220 --> 02:26:37,830
to have some flexibility and wait, wait
3235
02:26:37,830 --> 02:26:39,570
for the shore sign that this thing's
3236
02:26:39,570 --> 02:26:41,730
going to turn around. So when then clear
3237
02:26:41,730 --> 02:26:45,360
all the way up to the 132 20 level. Now,
3238
02:26:45,810 --> 02:26:46,800
folks that were
3239
02:26:47,460 --> 02:26:49,650
looking to sell, they're scared. They
3240
02:26:49,650 --> 02:26:50,790
don't want to get in the market. Now.
3241
02:26:50,820 --> 02:26:52,110
They don't know what's going to happen.
3242
02:26:52,170 --> 02:26:54,150
Why? Because they watched the guys get
3243
02:26:54,150 --> 02:26:55,590
blown out here. They watch the gods get
3244
02:26:55,590 --> 02:26:57,150
blown out here. This creates that
3245
02:26:57,150 --> 02:27:00,720
pattern three drives higher or Three
3246
02:27:00,720 --> 02:27:04,080
Indians, as it is in the street smarts
3247
02:27:04,080 --> 02:27:08,100
book. They'll do a massive repricing,
3248
02:27:08,130 --> 02:27:09,900
they'll take out a swing low here. Why?
3249
02:27:09,900 --> 02:27:11,490
Because there may be traders that were
3250
02:27:11,490 --> 02:27:15,570
net long in here and got smart and
3251
02:27:15,570 --> 02:27:17,430
realized it was probably going to move
3252
02:27:17,430 --> 02:27:19,380
higher. But they don't want those guys
3253
02:27:19,380 --> 02:27:20,790
in the marketplace either. Okay, so
3254
02:27:20,790 --> 02:27:22,050
they're going to drive them individuals
3255
02:27:22,050 --> 02:27:25,080
as well. Then they'll take price back
3256
02:27:25,080 --> 02:27:27,180
above that 132 figure or rate at it.
3257
02:27:27,630 --> 02:27:28,830
Okay. And this is typically when the
3258
02:27:28,830 --> 02:27:31,140
market really makes its pattern of going
3259
02:27:31,140 --> 02:27:33,390
short. Why? Because we have a breakdown
3260
02:27:33,390 --> 02:27:36,330
and market structure. After we clear out
3261
02:27:36,810 --> 02:27:38,550
the orders that stacked around these key
3262
02:27:38,550 --> 02:27:41,790
levels. You'll see price to a mass
3263
02:27:42,420 --> 02:27:44,670
dramatic repricing and take out all
3264
02:27:44,820 --> 02:27:47,010
short term lows, and anybody that would
3265
02:27:47,010 --> 02:27:48,720
be net long in that position, and now
3266
02:27:48,720 --> 02:27:51,240
they're trapped. The next portion is
3267
02:27:51,240 --> 02:27:54,030
that then they'll get you traders to
3268
02:27:54,030 --> 02:27:56,010
think okay, this was it, you know, sort
3269
02:27:56,010 --> 02:27:58,980
of fast resistance level. Maybe this was
3270
02:27:59,490 --> 02:28:02,220
you know, One of these patterns where it
3271
02:28:02,220 --> 02:28:03,360
looked like it was a top but it really
3272
02:28:03,360 --> 02:28:04,860
wasn't guys. So let's get on board and
3273
02:28:04,860 --> 02:28:06,720
they'll do a real quick repricing up.
3274
02:28:07,080 --> 02:28:09,930
This is where you get the nice optimal
3275
02:28:09,930 --> 02:28:12,210
trade entry sell short patterns. Okay,
3276
02:28:12,240 --> 02:28:13,800
and that's the one you want to be on.
3277
02:28:14,370 --> 02:28:16,530
And then you see the sustained swings,
3278
02:28:17,130 --> 02:28:21,420
lower begin. Obviously, like most
3279
02:28:21,420 --> 02:28:23,610
everything I have, you know, we're not
3280
02:28:23,610 --> 02:28:24,870
going to go through that whole long
3281
02:28:24,870 --> 02:28:27,030
winded depiction of how orders are
3282
02:28:27,030 --> 02:28:28,890
stacked and how dealers work within
3283
02:28:28,890 --> 02:28:31,380
these key levels. But assuming that we
3284
02:28:31,380 --> 02:28:34,290
have a support level, and price started
3285
02:28:34,290 --> 02:28:36,270
up here, much in the same capacity we
3286
02:28:36,270 --> 02:28:38,850
saw on the selling side, you can see
3287
02:28:38,850 --> 02:28:42,000
that unfold on the bullish aspect of
3288
02:28:42,000 --> 02:28:42,780
trading as well.