ICT - Sniper Course - 04 - Basic Infantry module - Stalking.srt
Last modified by Drunk Monkey on 2021-06-10 10:34
| 1 | 00:00:56,400 --> 00:01:06,390 | ICT: Okay folks, welcome to the industrial traders scout sniper Field Guide Episode Four, we're gonna be discussing basic infantry in this module. And what |
| 2 | 00:01:06,390 --> 00:01:14,400 | specifically we'll be covering in this presentation. Well, we're gonna be looking at a review of the previous episode assignment, stalking in the kill |
| 3 | 00:01:14,400 --> 00:01:27,990 | zone. We're gonna be looking at specific ICT kill zone examples since the time of our last presentation that was released on the ninth of September 2013. When |
| 4 | 00:01:27,990 --> 00:01:41,130 | we looking at some examples from that point on to most recently and we'll be looking at directional bias and high probability trade framework. We're gonna be |
| 5 | 00:01:41,130 --> 00:01:52,380 | revisiting the concept of why do markets move specifically dealing with the players and the game. And we're gonna be looking at what makes trade setups |
| 6 | 00:01:52,380 --> 00:02:05,190 | strategically quote unquote high probability. We're gonna be looking at ICT, no brainer, directional bias concepts, we're gonna be returning to higher timeframe |
| 7 | 00:02:05,190 --> 00:02:18,150 | analysis. Really looking at high odds by framework, and we're gonna be looking at high odds, sell framework, we're gonna be looking at market structure and |
| 8 | 00:02:18,180 --> 00:02:29,580 | order flow conceptualized. We're gonna be discussing, and unveiling institutional orders and smart money, fingerprints. And we're gonna be looking |
| 9 | 00:02:29,580 --> 00:02:41,220 | at how consolidations breed opportunity, and what we look for and why it matters. inside those consolidations. We're gonna be looking at institutional |
| 10 | 00:02:41,220 --> 00:02:53,430 | order blocks, we're gonna be looking at the concept of institutional sponsorship and what effects it has on your trading. And we're gonna be looking at a premise |
| 11 | 00:02:54,150 --> 00:03:05,130 | I refer to as returning to the point of origin, which is basically inside the ICT optimal trade entry concept, a like a nuts and bolts presentation of why |
| 12 | 00:03:05,130 --> 00:03:14,490 | it's so effective. And we're giving you more homework. Yes, this time we'll be tracking institutional price action. Okay, so let's get going. |
| 13 | 00:03:20,130 --> 00:03:32,730 | Okay, folks, we're looking at a daily chart of the Euro USD, the last episode we released was September 9 2013, in this continuing series, and we discussed the |
| 14 | 00:03:32,760 --> 00:03:42,870 | likely impact that the rising yields would have on the foreign currency markets and we discussed that it would have a continued upward pressure on the fiber, |
| 15 | 00:03:42,900 --> 00:03:57,420 | which is the Euro USD again, real quick, let's just reflect back upon the yields and what it was doing in graphic form. And you can see that here. Can you see |
| 16 | 00:03:57,420 --> 00:04:09,870 | the rising yields, okay, and when that happens, price, one variably tried to chase or quote unquote, seek yield. And it'll be moving up in trying to close |
| 17 | 00:04:09,870 --> 00:04:21,270 | the gap between the yields and the actual underlying price of the currency. Now, because this candle here delineates the actual time that recording was made, |
| 18 | 00:04:22,200 --> 00:04:31,350 | there's been a significant amount of pips moved from that date until now and we're just going to use the highest point, okay, we're not going to use the best |
| 19 | 00:04:31,350 --> 00:04:39,810 | scenario the low we're just going to use the highest point of that, that candle on the ninth. Okay, and we're going to discuss briefly the amount of pips that |
| 20 | 00:04:39,810 --> 00:04:53,280 | were available that's 291 pips, so basically almost 300 pips were made available in advance in advance, in the form of discussion as upward, likely price |
| 21 | 00:04:53,280 --> 00:05:06,810 | movement. Now we had a homework assignment from Episode Three and it was trading In the zone, okay, or stalking in the kill zone. And we're going to discuss that |
| 22 | 00:05:06,840 --> 00:05:17,550 | here. Okay. And what we're going to do is, is we're going to move down into an hourly chart, and I'm going to delineate the ninth of September. Okay, so |
| 23 | 00:05:17,550 --> 00:05:28,890 | everything right, have this vertical line, basically is referencing where we are in terms of the last recording, and posting in this video series, and what we're |
| 24 | 00:05:28,890 --> 00:05:40,470 | going to discuss, okay, and as an example, of the ICT kill zones, we, we already had a premise in mind based on the analysis of the the interest rate market, and |
| 25 | 00:05:40,470 --> 00:05:52,440 | how it would have a magnetic pole on price upward. Okay. And with that understanding, we're going to add, okay, we're going to add the ICT kill zones, |
| 26 | 00:05:52,860 --> 00:06:03,150 | and we're going to add the vertical de delineation. Okay, again, the double bar here on empty for delineates weekends, what we're going to be basically focusing |
| 27 | 00:06:03,150 --> 00:06:13,320 | on is the fact that we were expecting, now I'm going to say this word, please don't take it out of context, because I am not a fundamental trader, okay, as |
| 28 | 00:06:13,320 --> 00:06:22,170 | fundamental as it gets for me is interest rates. Okay. But fundamentally, the driver for the Euro to be going up like it was, was that the yields were moving |
| 29 | 00:06:22,170 --> 00:06:32,790 | higher. Okay. And contrast that with the fact that we know that is the case when we see Technically, the 10 year yields declining, okay, so if we go to the |
| 30 | 00:06:32,790 --> 00:06:44,970 | commodity market, and we refer to the 10 year, futures market, okay, when that market is moving lower, that's actually an increase in yields. Okay. And an |
| 31 | 00:06:44,970 --> 00:06:54,240 | income increasing yield is going to be diametrically opposed. And there's going to be basically an inverse relationship between the futures price of 10 year |
| 32 | 00:06:54,330 --> 00:07:05,460 | notes, and its yield. Okay. So if the futures chart on bonds or tea notes are dropping, that is an increase in yields. Okay. And that's going to be bullish |
| 33 | 00:07:05,640 --> 00:07:17,670 | for foreign currencies in bearish for the US dollar. Okay. And, conversely, if you reverse that phenomenon, and you look at when the 10 year notes on the |
| 34 | 00:07:17,670 --> 00:07:27,600 | futures basis or bond market is rallying on the on the futures market, that's going to be a decline on yields, which will be bullish for the US dollar and |
| 35 | 00:07:27,600 --> 00:07:37,020 | bearish for foreign currencies. Okay. So that's a very quick and dirty way of understanding what risk on risk off is how I define it. Okay. So if you're |
| 36 | 00:07:37,020 --> 00:07:47,910 | looking for any fundamental drivers, okay, that's about as fundamental as it gets from me, okay. Outside of, you know, CT data in such in premiums on the |
| 37 | 00:07:47,910 --> 00:07:57,690 | front nearby mom months in the futures markets, which we'll discuss that another time. It's too vast of a subject for me to cover in this module. But there's |
| 38 | 00:07:57,690 --> 00:08:04,590 | other resources made available on the internet that I've discussed, either your own work or by Larry Williams in that regard. |
| 39 | 00:08:06,030 --> 00:08:19,350 | So with all that, again, we were looking for bullish movement on the Euro USD and other foreign currencies with a bearish tone in the US dollar. Now, when we |
| 40 | 00:08:19,350 --> 00:08:30,990 | have that, that backdrop on price, okay, as a technical trader, we would be focusing on one, one side of the market more than the other, okay? Now, that |
| 41 | 00:08:30,990 --> 00:08:41,970 | does not mean that we complete throughout every bear sell signal, it just means that we should be focusing more in our equity allocation rather, one the long |
| 42 | 00:08:41,970 --> 00:08:49,530 | side of trading, okay, in other words, you will get more bang for your buck, being a bull than you would be being a bear. So if you are going to be doing a |
| 43 | 00:08:49,530 --> 00:09:03,150 | trade that's counter this fundamental again, quote unquote, driver in the marketplace. Understand that number one, you're resisting the overall market |
| 44 | 00:09:03,270 --> 00:09:15,180 | pinnings again, in other words, there's going to be a tug of war between you being a bear, okay, and the smart money that is really perpetuating this market |
| 45 | 00:09:15,180 --> 00:09:24,540 | higher. So, understand that I mean, there are times where you can be right and profitable, okay, in doing that being contrary, but just don't wear out. You're |
| 46 | 00:09:24,540 --> 00:09:32,700 | welcome. Okay. And Mary, the vein does get blown out of water, even in the best traders in the world. Understand, there's a simple premise, you just don't |
| 47 | 00:09:32,700 --> 00:09:39,750 | fight. You know, you just don't fight the tide. Okay? Because if you're swimming against the tide, you're going to tie yourself out and ultimately kill yourself. |
| 48 | 00:09:40,290 --> 00:09:53,940 | But if we understand that being a bull in this environment, okay, we could have much more relaxation, much more calm as we engage the market because we know |
| 49 | 00:09:53,940 --> 00:10:04,050 | what it is specifically that we're looking for. Again, that gets back to differentiating yourself from The neophyte or the street money? Okay, we are not |
| 50 | 00:10:04,050 --> 00:10:11,340 | simply sitting down with a computer and saying, well, I feel like it's going to go up today. Okay, but the last five minutes has been going down. So let me |
| 51 | 00:10:11,340 --> 00:10:22,800 | sell, okay, that's not sound trading. Okay, that's not a plan that's reactionary trading. This whole series is delving into the importance of having number one, |
| 52 | 00:10:22,800 --> 00:10:34,920 | a pre determined plan of attack, any pre determined method of attack, and then a procedure in place that's clearly defined, comprehensive, and you know, |
| 53 | 00:10:34,920 --> 00:10:43,710 | specifically what you're doing, when you're doing it, why you're doing it, and when you won't do it, and the reasons why you won't be doing as well. So with |
| 54 | 00:10:43,710 --> 00:10:57,630 | that rant, okay, let's delve deeper into what specifically took place from this point one, and how we can use the ICT kill zones, to ferret out the lows in this |
| 55 | 00:10:57,660 --> 00:11:07,020 | up move that we were looking forward to unfold, how we could time scenarios where we could be a bullish buyer in this and possibly have made money, we're |
| 56 | 00:11:07,020 --> 00:11:20,700 | going to be moving into a 15 minute chart, okay. And, again, we're going to be introducing the ICT kill zones, and we're going to be losing our vertical line |
| 57 | 00:11:20,700 --> 00:11:34,170 | here. That's okay. And here is the September 9 timeframe. Okay, and we're just gonna be tracing this whole period only upside. And we're going to zoom in. |
| 58 | 00:11:36,510 --> 00:11:51,000 | Okay? And what we're looking at, again, are the red dashed lines here, okay? This basically is encapsulating the whole London session. Okay? And the green in |
| 59 | 00:11:51,000 --> 00:11:57,420 | here is basically encapsulating the New York open, or New York session, okay? |
| 60 | 00:11:58,170 --> 00:12:13,140 | And what you're looking at is how, by focusing on catching a decline or pullback within that specific time window each day, with a premise in mind where we most |
| 61 | 00:12:13,140 --> 00:12:23,310 | recently moved away from, and we're going to retrace back into November it's we had a range. Initially during the London session here, we saw it rally up in |
| 62 | 00:12:23,310 --> 00:12:32,790 | here, then it retraced within that range, the range between this high and this low. Okay, that retracement in here was an opportunity to be long as the market |
| 63 | 00:12:32,790 --> 00:12:41,970 | moved higher and expanded its London session range. Okay, we had another minor pullback a pullback to a dealing range high in here, and then moves on out, and |
| 64 | 00:12:41,970 --> 00:12:51,000 | we entered into the New York kill zone, rallied up the retracement in here. While there was nothing sufficient over here in terms of support resistance, we |
| 65 | 00:12:51,000 --> 00:13:00,810 | will talk about these pauses in this video module and how it's useful to you. But very smooth up eventually moved and made a high outside of the New York |
| 66 | 00:13:00,810 --> 00:13:10,320 | session. And, or at least in New York kill zone, it's not the session itself that was outside of time when it I clearly defined. Now, when you see me moving |
| 67 | 00:13:10,320 --> 00:13:22,530 | the cursor across the chart, don't be discouraged, okay? or confused? Because this says ICT Asian range, what I'm using is the MT four indicator. Okay, that's |
| 68 | 00:13:22,830 --> 00:13:32,970 | usually used for my Asian range. barriers, like we're seeing here, the upper and lower for New York, all I did was change the time parameters to encapsulate the |
| 69 | 00:13:33,120 --> 00:13:39,810 | specific New York and London sessions. Okay, so if I do Passover, and you see these little boxes popping up, and you're wondering what it's saying, or if you |
| 70 | 00:13:39,810 --> 00:13:48,150 | catch it, and it says that don't be confused, it's simply because I'm using the indicator itself. The I named ICT Asian range, it's just it's multi. It's a |
| 71 | 00:13:48,150 --> 00:13:59,670 | multi useful, okay, you can use use it for different things as we're showing here. Now, this day, here's Monday, on the ninth. Okay, now, that was the date |
| 72 | 00:13:59,670 --> 00:14:13,890 | that we released the previous installment in the series. This is the Tuesday. Okay. And now what we're going to talk about is how we use these sessions, okay, |
| 73 | 00:14:14,160 --> 00:14:26,610 | with the understanding of expectancy moving higher in price, okay, there's highs and lows within these time windows. Okay? We have the low, we have a high and in |
| 74 | 00:14:26,610 --> 00:14:38,700 | between there. Okay, any swing high or low is useful? This one here? This one here, okay. Inside the New York session, okay, we have a low here and we have a |
| 75 | 00:14:38,700 --> 00:14:51,150 | high here. Okay. And on the following day on this Tuesday, this was September 10. We had the range from here to here for the London session. And the New York |
| 76 | 00:14:51,150 --> 00:15:03,150 | session is here. Okay, so inside of that, you can see that there are swing highs and swing lows that are useful as well. By understanding that, okay, and |
| 77 | 00:15:03,150 --> 00:15:15,570 | understanding the concept of the range or previous day's range or session ranges, okay, that being here's the previous New York session range, this is a |
| 78 | 00:15:15,570 --> 00:15:26,190 | low in here, okay. And what we'll do is, we're going to highlight an opportunity that could have presented itself to you as a trader. From that low to the high. |
| 79 | 00:15:27,210 --> 00:15:38,040 | Okay, I'm going to move over here, you can see how price moves down into the optimal trade entry area here, which is between the 62 and 79, seven tration |
| 80 | 00:15:38,040 --> 00:15:52,680 | levels, respectively, it went right down to the sweet spot, which is essentially the 70.5 Fibonacci level, okay, seven 0.5, you will have to set your platform up |
| 81 | 00:15:52,710 --> 00:16:03,420 | if it's not empty for your own way, I don't know how to do, what platform you're using. And I really would rather avoid going through a long list of possible |
| 82 | 00:16:03,480 --> 00:16:14,460 | emails saying, What can you help me deal with with this platform, I'm pretty much limited to just using, you know, what we have here? Okay, Mt. Four, because |
| 83 | 00:16:14,460 --> 00:16:25,050 | I don't want to get into, you know, I'm long winded explanation of what possible platforms you could be using. And then we get into the conversation of which |
| 84 | 00:16:25,050 --> 00:16:34,920 | one, I advise over that. So I use a very generic one, MT four, okay. That way, everybody's really accessible. It's free, it doesn't cost you anything. And it's |
| 85 | 00:16:34,920 --> 00:16:40,080 | pretty much universal. And then you can delve into other platforms where you see its usefulness. |
| 86 | 00:16:41,550 --> 00:16:51,420 | So we have we did deviate outside of that, that range here, okayed by the define terms of the ICT kill zones for this series. Now, they're saying there's small |
| 87 | 00:16:51,420 --> 00:16:59,460 | variances in the times that I'm using for this one, and the ones that I use for my own trading. So please, don't take that comment, say, Well, look at this, |
| 88 | 00:16:59,460 --> 00:17:12,180 | he's not even teaching what he uses. I took a lot of time to eliminate a lot of the stumbling blocks that I see in email form. Okay, because over the last three |
| 89 | 00:17:12,180 --> 00:17:23,250 | and a half years, I have been inundated with reoccurring questions about what time window is this? And what would that be in my timeframe, or my global |
| 90 | 00:17:23,250 --> 00:17:33,450 | position around the planet? And I readily admit, it's a very confusing topic for me. Okay, so I understand it's, it's confusing for other people. And as a |
| 91 | 00:17:33,450 --> 00:17:43,860 | mentor, that's one of my weak points, communicating that effectively. Okay, and to eliminate that I just simply gave you a very generic time window for London |
| 92 | 00:17:43,890 --> 00:17:53,340 | and New York sessions. And if you hunt during those time windows, you'll find more than enough opportunities, okay? And none of my tools are going to give you |
| 93 | 00:17:53,340 --> 00:18:03,600 | every single trade, okay? You could probably go back in hindsight and find where it was useful to you, okay, but don't have such high demand on these tools |
| 94 | 00:18:03,600 --> 00:18:11,100 | expecting you to get every single high and low, every single movement in the marketplace. Okay, that's not what I'm teaching. That's not what I'm promising |
| 95 | 00:18:11,100 --> 00:18:21,330 | you. I'm promising you an edge. That's it. Okay. So how you tweak that edge and how you use that edge is completely and utterly up to how you employ and work |
| 96 | 00:18:21,330 --> 00:18:32,700 | at, okay. So on Tuesday, we saw the market, make a significant low here, and then rally up. Okay, and going into that Wednesday of that week, we saw price |
| 97 | 00:18:32,700 --> 00:18:41,190 | move down, making a low in London, okay, in the London kill zone when it would be reasonably expected to form Okay, and you could take the low from the |
| 98 | 00:18:41,190 --> 00:18:50,550 | previous day, up to the highest high prior to moving into one session, okay? Because what you're doing is you're looking for that retracement, back inside of |
| 99 | 00:18:50,550 --> 00:19:01,200 | the range. Okay. And, again, we see the low to the highest high here prior to it moving into the London session. Okay, price comes right down into again, the |
| 100 | 00:19:01,200 --> 00:19:12,570 | optimal trade entry region and price rallies up. Okay, if you initially missed that opportunity, it gives you another opportunity to catch a ride on this move |
| 101 | 00:19:12,570 --> 00:19:21,540 | up in the form of this pullback here. So you could use this swing low and again, let me take this off because we're already getting busy. You could use this |
| 102 | 00:19:21,540 --> 00:19:34,770 | swing low to this swing high in London, and you'll get this right in here as a retracement. Okay, and don't be thrown off also with the breaks between again |
| 103 | 00:19:34,770 --> 00:19:45,690 | i'm sure you hear the time between the London kill zone here. And here. There's an overlapping between these two sessions that it's very busy. Okay, there's a |
| 104 | 00:19:45,690 --> 00:19:57,930 | small little period around 5am New York time, or 10 GMT, where you may get a little bit of a pause or a breather. That's, you know, not guaranteed to happen |
| 105 | 00:19:57,930 --> 00:20:11,430 | always. Many times you'll see prices Continue on blow through that time pocket of, you know 10am till 11 GMT it would be foolish of me to advise you to always |
| 106 | 00:20:11,430 --> 00:20:20,190 | expect it to be a little pause in here. But you can reasonably expect it treat it like a you know a much okay where there's a small little consolidation and |
| 107 | 00:20:20,190 --> 00:20:29,250 | and all of a sudden it'll it'll take off in the trend direction that's established by the London session. Okay, so we have a low forming here, one this |
| 108 | 00:20:29,250 --> 00:20:38,220 | day again looking for retracements to buy off of this was one, this one in here. And then you have one in the New York session here as well. You can take this |
| 109 | 00:20:38,220 --> 00:20:53,760 | swing low and to this high here, okay in the 62% retracement and it may be a little difficult to see so I'll do my best to draw a little bit tighter to see |
| 110 | 00:20:53,760 --> 00:21:04,110 | that the 60% treatment always right on top of that line that would delineates the New York session beginning the least the boundary bout time and then price |
| 111 | 00:21:04,110 --> 00:21:15,210 | rallied on up. I actually took this trade, okay, so it's not like it's something that's purely hindsight and fine question or whatever I can show you |
| 112 | 00:21:15,660 --> 00:21:28,800 | documentation about the trade and the actual real results, not a demo trade. And the end, the opportunity to continue moving higher in intraday in here also was |
| 113 | 00:21:28,830 --> 00:21:39,150 | available and you could have caught some further upside as well. But that's outside the scope of this teaching. And this this presentation. Again, moving |
| 114 | 00:21:39,150 --> 00:21:41,100 | into let's go out one more. |
| 115 | 00:21:46,470 --> 00:22:01,230 | Okay, this was that my we were discussing. And here we have the range from the previous day's low up to the highest high. Okay, right here prior to moving into |
| 116 | 00:22:01,440 --> 00:22:12,420 | London and New York. Okay, here's New York down here. You can see our price mood setting is a treatment level. Okay. And we're going to talk about why this may |
| 117 | 00:22:12,420 --> 00:22:24,510 | not have been a good idea to trade Okay, looking for a long because of something going on over here. Okay, but that's later on in the video guys. I know. teaser |
| 118 | 00:22:24,510 --> 00:22:35,220 | teaser price rallies up in here. Okay, nice opportunity. Okay, just to be a buyer specifically looking to catch Long's Okay, the range available was 68 |
| 119 | 00:22:35,220 --> 00:22:43,710 | pips, you could reasonably expect to get 30 pips out of that and so there's absolutely no reason why one couldn't have you taken 20 to 30 pips comfortably |
| 120 | 00:22:43,710 --> 00:23:00,930 | out of that move even with it retracing and returning back into this this range here. We have a low here Okay, we have a low in here formed and using that to |
| 121 | 00:23:00,930 --> 00:23:13,890 | the high formed rate here. Okay price comes down deviates to 797 trace on briefly just briefly, okay, and then given a tradable rally in here to the tune |
| 122 | 00:23:13,920 --> 00:23:29,400 | of about 25 pips there's nothing wrong with that. And if you consider the overall range of this price swing from here up to the high end as it retraces we |
| 123 | 00:23:29,400 --> 00:23:41,220 | had the center line here and the 75 level here respectively and then look come down one more time found the seven night saturation level as well. One more time |
| 124 | 00:23:41,220 --> 00:23:50,160 | bouncing off it like we did here just violated this low just by a little bit You see that? If price does that it's usually a precursor to something pretty |
| 125 | 00:23:50,160 --> 00:23:59,520 | significant. And you can see how clean these highs up here were so you can imagine what was resting above that. And you see that was the case here they |
| 126 | 00:23:59,520 --> 00:24:12,180 | took out all the stops with that huge weekend gap blowing out all these highs that were way too clean. And that's classic ICT work there. You can see the the |
| 127 | 00:24:12,180 --> 00:24:21,660 | result of why I say when levels are too clean that you can expect a pocket of stops the sitting up there and they will gun those bad boys out. And they did a |
| 128 | 00:24:21,660 --> 00:24:36,210 | handsome job of it that week. Okay. And price moved again. On Monday, small little rally here in the London session going into New York, okay before |
| 129 | 00:24:36,210 --> 00:24:53,190 | retracement deeper. Okay, now let's look at something. Okay. And it's a very cool technique, and I dumped it and hidden optimal trade entry. And for those |
| 130 | 00:24:53,190 --> 00:25:03,690 | that aren't really fans of my work, they find it rather silly to suggest it something It might be hidden and therefore be useful. But it's really not more |
| 131 | 00:25:03,690 --> 00:25:11,970 | than simply looking at an idea of support resistance. Okay, which is what we have here, I think it would be hard pressed to find anyone that would really |
| 132 | 00:25:12,000 --> 00:25:23,520 | fight this as being a discernible level of resistance. Okay, we saw it bounce up here, here, here. Okay. And if price was to get back above it, as we see here, |
| 133 | 00:25:23,850 --> 00:25:38,010 | we would expect it to be what? support, right? So we would have a role reversal, if you will, okay. But simply because it's expected level of resistance here, it |
| 134 | 00:25:38,010 --> 00:25:48,030 | may not come back down to that level anytime soon. But it still is useful to us as a point of reference. Because between that level, and where price opened up |
| 135 | 00:25:48,030 --> 00:26:00,030 | and rallied up to here, okay, that is a range. This this right here, this point here, from this candles low to this candles close here, this is a gap. Now, |
| 136 | 00:26:00,030 --> 00:26:09,210 | while there was no trading there, okay, you have to understand that this is still a range. |
| 137 | 00:26:10,770 --> 00:26:20,250 | Okay, that's a range. This is simply no trading between this price point of the close of the previous Friday and the opening on Sunday. There's no trading in |
| 138 | 00:26:20,250 --> 00:26:32,490 | there. It's all you know, the liquidity isn't is none zero. Okay. But because price is trading here, you still have to consider that as range. Okay? It just |
| 139 | 00:26:32,490 --> 00:26:41,610 | means that there's gaps in between these two price points. And usually the market finds a way to fill those gaps, but not right away sometimes. Okay. So |
| 140 | 00:26:41,610 --> 00:26:52,440 | without understanding is, with this gap, or without this gap, if you ever see a discernible level like this, okay, we're clear resistance and support resides. |
| 141 | 00:26:52,650 --> 00:27:03,690 | If you take your fib and anchor it right from that price point. And you rallied off that, take it up up to the highest high. Okay. When price retraces |
| 142 | 00:27:04,950 --> 00:27:14,670 | basically, what you're saying is it's retracing into this range, gaps don't have to fill also. Okay, I've seen many times where gaps stayed unfulfilled, you |
| 143 | 00:27:14,670 --> 00:27:23,940 | know, for years, that was in commodity markets that was in stock indices. Okay. Just simply because it gapped doesn't mean necessarily, that it's going to fill, |
| 144 | 00:27:24,120 --> 00:27:34,080 | that's not it doesn't mean this is a common gap, if you will, okay, common gaps usually get filled relatively quick. This could be a breakaway gap, where it |
| 145 | 00:27:34,080 --> 00:27:43,410 | necessarily isn't always going to be filled, you know, especially you have you have a long term, monthly yearly trend underway, who says it's going to have to |
| 146 | 00:27:43,410 --> 00:27:54,240 | go away back down to that gap. Okay, this just shows that there's a huge influx of buying, okay, on an institutional level. So therefore, we still have to |
| 147 | 00:27:54,240 --> 00:28:03,540 | consider this as a range in price comes right down to the 70.5, and then rallies off of it and gives you what an opportunity to trade to where, and why. Okay, so |
| 148 | 00:28:03,540 --> 00:28:14,580 | just simply looking at support resistance, and using Fibonacci alone is useful. Okay. And there's 40 pips made available to someone that would simply understand |
| 149 | 00:28:14,580 --> 00:28:23,610 | that concept, and work with it, okay, doesn't mean you need to hold on to it and expect the moon, it just gives you an opportunity to trade. Okay. And there's a |
| 150 | 00:28:23,610 --> 00:28:33,210 | trading pattern in this that we're not having discussed, it's been pre released by me on the internet. But that's for another time, another topic. But again, |
| 151 | 00:28:33,540 --> 00:28:46,710 | you know, we have this low in here, okay, that was an opportunity to catch a short term little pop in the market, again, focusing only being a bull, we have |
| 152 | 00:28:46,830 --> 00:29:00,120 | price moving into a larger consolidation, okay, we do have an opportunity to see like this low here, to this high, this is an opportunity here where you could |
| 153 | 00:29:00,120 --> 00:29:10,740 | potentially look to be a buyer in here, okay, but with this gap like it is here, it just, it's a lot of uncertainty where it may try to reach that you could be a |
| 154 | 00:29:10,740 --> 00:29:26,160 | buyer here, and let's assuming that was the case, you know, price was able to move up strongly, in this case here, with FM f o MC. Release in here. But this |
| 155 | 00:29:26,340 --> 00:29:36,690 | this day here, okay, if we use the same premise that we had that same support line, okay, let's go back just a little bit, so you can see that clear. We're |
| 156 | 00:29:36,690 --> 00:29:46,800 | gonna use the same premise, this set support line. And we're using the kill zones again, as guides. And this is the range, the highest high prior to going |
| 157 | 00:29:46,800 --> 00:29:56,760 | into the London and New York sessions. Now, again, we had FOMC coming up this day, so you'd have the expect, price that is more or less consolidate prior to |
| 158 | 00:29:56,760 --> 00:30:07,830 | going into that specific release, but price makes the low in New York session right on the move past before you go see it apologize. Back. Price comes right |
| 159 | 00:30:07,830 --> 00:30:17,820 | down to that 62% retracement level. And it takes off. And in quake in case you're, you're you're wondering, I was long in here and I am going to tweet, the |
| 160 | 00:30:17,820 --> 00:30:30,150 | actual entry point. And you can see that I was not outside of this move. It was rather exciting, because it was one of those times where we had everything in |
| 161 | 00:30:30,600 --> 00:30:43,170 | alignment, we had yields, suggesting the price is going to move higher. We had a huge weekend gap that was unfilled. It just was unable to breach that 133 25 123 |
| 162 | 00:30:43,200 --> 00:30:55,050 | I'm sorry, 133 23 level in this area here as support narrowing came down to it never needed to and then just launched vertically on the upside, again, keying |
| 163 | 00:30:55,050 --> 00:31:00,450 | off of the London open and New York open kill zones. was |
| 164 | 00:31:00,990 --> 00:31:10,530 | useful here because the law actually farnam day during the New York session, and price moved on higher. And they went to another consolidation going into the |
| 165 | 00:31:10,530 --> 00:31:21,270 | close of the week. Again, our previous understandings in the previous videos that we see price, when it rallies large like this, this is a big daily range. |
| 166 | 00:31:21,540 --> 00:31:27,060 | So what do you think's gonna happen when the average Joe, he's gonna get in the market say, Well, I'm going to be a buyer now and I'm going to be expecting this |
| 167 | 00:31:27,120 --> 00:31:35,160 | thing to repeat the same similar move. Not always, and certainly not off of an economic report because what will happen is there's going to be some |
| 168 | 00:31:35,160 --> 00:31:44,970 | rebalancing, okay, and what they'll do is they'll consolidate and more or less pause for a moment and reflect on whether or not this was really needed. Okay. |
| 169 | 00:31:45,300 --> 00:32:02,640 | And this is very illiquid a lot of gaps in here. Okay, so it was in a rush to get somewhere it held us 135 3135 50 range. Okay, and price again, moving into |
| 170 | 00:32:02,640 --> 00:32:16,440 | consolidation, looking at how price moves like this, we are in a wait and see mode when this happens, even though we are bullish traders, when price moves so |
| 171 | 00:32:16,740 --> 00:32:29,760 | aggressively, like this short term, okay, and we're talking about a move intraday one day. Moving 212 pips in one day, when that's a big, that's a huge |
| 172 | 00:32:29,760 --> 00:32:39,300 | range for one day, when you see that, okay, expect small ranges. And this is what you see here, small ranges, small range, small ranges, and then what you're |
| 173 | 00:32:39,300 --> 00:32:49,770 | going to wait for is discernible signs that we have an opportunity to trade. Okay, and it's dropped out because I'm about to close. Here is that FOMC |
| 174 | 00:32:49,800 --> 00:32:58,380 | release, consolidation small, little retrace and smaller retrace a small little retracement. And then finally, we get some market structure shifting to the |
| 175 | 00:32:58,380 --> 00:33:07,530 | bullish side. And then you can see that net, what I'm referring to is this break here this high, it made it very convincing rally, which we're going to talk |
| 176 | 00:33:07,530 --> 00:33:21,960 | about this type of price action and what is so useful about it, you have an opportunity to see this range, price comes down to the 79 situation, small |
| 177 | 00:33:21,960 --> 00:33:36,360 | little violation, not much. But this is an opportunity to be a buyer. Again, focusing on the time window and the kill zones. We have price rally up on out of |
| 178 | 00:33:36,360 --> 00:33:46,800 | here. So again, we have this small little range in here that is outside of our kill zone. So even though this could be a trade taken during the asian session, |
| 179 | 00:33:47,280 --> 00:33:59,550 | again, outside the scope of this teaching, if we see this rally up here like this, this is the area of where you would be expected to be a long based on what |
| 180 | 00:33:59,550 --> 00:34:10,830 | we're teaching. And that looks like this, this is the low during the month kill zone and the high may during the London kill zone. So we have a price swing |
| 181 | 00:34:10,830 --> 00:34:26,700 | within that timeframe. Right in here, this is adjacent level, okay. And the main zoom in Okay, you can see price comes down, gives you more or less like railroad |
| 182 | 00:34:26,700 --> 00:34:39,330 | tracks if you're a candlestick student. What that is you have a big range down the range up immediately. And that was a precursor to upward pressure. Again, |
| 183 | 00:34:39,330 --> 00:34:51,480 | that's just using the low here. If you use the low form during the asian session over here, you can see we didn't have anything in terms of ot to support the |
| 184 | 00:34:51,480 --> 00:35:08,520 | except for some 50% fib which is not significant in my repertoire. So again, Without understanding, you have it here. And we have this market making the high |
| 185 | 00:35:08,550 --> 00:35:25,860 | dollar and the actual New York session. Okay, and the high closing on the candle 1400 GMT. So it's one hour earlier than we would expect to see profit taking, |
| 186 | 00:35:26,220 --> 00:35:37,170 | which is the 1500 GMT candle. And that happens right there. So right in here is when you would reasonably expect him to see the Hi Hat formed and it was a |
| 187 | 00:35:37,170 --> 00:35:45,180 | little early on that day here. So basically what we just discussed was an overview of how important |
| 188 | 00:35:45,240 --> 00:35:58,200 | understanding the kill zones role in trading. Okay, and again, just focusing on one side of the marketplace, and that's not necessarily a weakness, okay, I get |
| 189 | 00:35:58,200 --> 00:36:06,120 | a lot of email flack about you know, well, you're missing all these opportunities just doing this? Well, look, man, show me a trader that's catching |
| 190 | 00:36:06,120 --> 00:36:15,840 | every move with documentation and results that show an upward equity climb, because I'm gonna tell you right now, if they exist, they're not talking to you. |
| 191 | 00:36:16,290 --> 00:36:25,560 | Their work for some big wig operation somewhere, okay? And they could care less you who want internet bullies What? Okay. What we're discussing here is an |
| 192 | 00:36:25,560 --> 00:36:39,930 | opportunity to learn how to approach and engage the marketplace with a plan of attack, a trading plan, if you will, one that is repeatable one that is usable |
| 193 | 00:36:40,320 --> 00:36:50,370 | in all market conditions. Okay. But simply because it's usable on every market condition does not mean it's going to be a trade in every market condition. |
| 194 | 00:36:50,460 --> 00:36:58,890 | Okay, a lot of folks are struggling with directional bias. We're going to talk about that in this video module, we're going to talk about the importance of not |
| 195 | 00:36:58,890 --> 00:37:09,150 | doing anything. Okay, because a lot of times, folks will just assume that just simply because the market moved, better ICT was involved in that trade, not |
| 196 | 00:37:09,150 --> 00:37:19,290 | necessarily, my trade frequency is very small. I used to trade a lot, you don't have to trade a lot. Okay. The tools I'm sharing in this video series will allow |
| 197 | 00:37:19,290 --> 00:37:24,360 | you to cherry pick these concepts. It's being divulged in this, |
| 198 | 00:37:24,720 --> 00:37:35,670 | this specific trading plan series is designed for you to catch those one shot one kill weekly hauls, where you just waiting for that really good setup for the |
| 199 | 00:37:35,670 --> 00:37:45,960 | week, make your weekly objective, don't care if it goes anything beyond your normal expected in terms of, you know, if it's 50 to 100 pips for the week, |
| 200 | 00:37:45,960 --> 00:37:56,820 | whatever this approach will help you do that. It'll help you get in that direction of being consistently hauling that type of that game. If you are |
| 201 | 00:37:56,820 --> 00:38:06,540 | expecting this to give you every single day trades, you're looking outside the scope of what its intended purposes. Now, I have approaches and techniques and |
| 202 | 00:38:06,540 --> 00:38:16,020 | concepts that are applicable for those types of environments in those styles of trading. But I don't think it's a good fit for new traders. I think it builds |
| 203 | 00:38:16,020 --> 00:38:24,750 | confidence if one can number one, learn to anticipate, learn to engage with an understanding why you're doing it when you're doing it, when not to do it, which |
| 204 | 00:38:24,750 --> 00:38:33,480 | is more important to you taking a trade, because there's more time in the market for you to lose money than there are for you to actually in line with the market |
| 205 | 00:38:33,540 --> 00:38:44,040 | and then make money. Okay, and we're going to discuss that later on in this video. But understand that the likelihood and the odds and time window for you |
| 206 | 00:38:44,040 --> 00:38:56,490 | to lose money is far greater than the short, small little pockets of opportunity that present themselves as trade setups that are profitable. Look, if you take |
| 207 | 00:38:56,490 --> 00:39:05,730 | 1000 traders home from all corners of the earth, put them in a room and you tell them look at the same chart, every single one of those guys are going to have |
| 208 | 00:39:05,730 --> 00:39:17,580 | something different and what they see and what they expect. This is a framework for you to build upon. It's not a complete, be all end all. Okay, it's not a |
| 209 | 00:39:17,580 --> 00:39:30,090 | panacea. But what you're going to get from this is going to give you a procedure to apply. And if it's applied correctly, within the defined terms from video, |
| 210 | 00:39:30,090 --> 00:39:41,670 | one, two, video eight, you're going to see a big picture panoramic view of when you should be engaging when you should not be engaging. And when you are |
| 211 | 00:39:41,670 --> 00:39:52,440 | engaging, what specifically you're doing when, why, how, okay, there's going to be no ambiguity when it comes to that. But it's important for you to get through |
| 212 | 00:39:52,440 --> 00:40:01,890 | all this boring dry stuff because that's what gives you the understanding to make you effective once you start applying these tools. Because every time you |
| 213 | 00:40:01,890 --> 00:40:11,310 | watch these videos, it doesn't mean simply go out the next day and expect those things unfold exactly as you saw in that previous video, you learn by expecting |
| 214 | 00:40:11,640 --> 00:40:20,250 | to see similarities to what you see in these videos, and you gain a understanding, okay, and you activate your reticular activating system where you |
| 215 | 00:40:20,250 --> 00:40:30,360 | start seeing the same pattern unfolding all the time, always, they're always there. And there's gonna be slight deviations from what you expect to see and |
| 216 | 00:40:30,360 --> 00:40:38,700 | what actually is there. And that's the fine art and trading that you aren't going to learn from a textbook, you're not going to learn from a $2,000 webinar |
| 217 | 00:40:38,700 --> 00:40:49,860 | seminar going across the planet, go see somebody that promises you, he's been doing it for 25 years, and he's so much better than everybody else. Look, there |
| 218 | 00:40:49,860 --> 00:41:00,060 | is going to be a growing period for you. And it's going to come with being here from the charts, I learned something new, every single month, I'll go back over |
| 219 | 00:41:00,060 --> 00:41:08,160 | my journal, and I will discuss about how to keep a journal and in the last portions of these videos, and what's a real good way of referring to it |
| 220 | 00:41:08,160 --> 00:41:15,570 | reflecting on it and what you should be gleaning from every time you do it. I learned something new. And a lot of it's about myself, not necessarily about the |
| 221 | 00:41:15,570 --> 00:41:28,620 | marketplace. But I learned a lot and I journal those types of things. So when you see these kill zones, learn to anticipate specific types of price action and |
| 222 | 00:41:28,620 --> 00:41:38,610 | behavior. You are not at the point at which you are expecting to do trades yet, okay? You're still in an observatory state. Okay, what you're doing is you're |
| 223 | 00:41:38,610 --> 00:41:50,850 | spectating, or paper trading, okay, you're just looking to see how these markets gyri and move within these specific time windows with a higher timeframe, |
| 224 | 00:41:51,000 --> 00:42:00,870 | panoramic, quote, unquote, fundamental perspective. And I'm hoping that you're gleaning that there is a few |
| 225 | 00:42:01,680 --> 00:42:13,230 | cherries hanging on the monthly tree of forex. Okay, you can calmly and gingerly walk up to it, reach out and pluck those cherries, when you know, it's |
| 226 | 00:42:13,260 --> 00:42:21,810 | applicable for you to do so. Not simply because it's an opportunity to trade because therefore, it's Monday, the markets are trading, I got home from work |
| 227 | 00:42:21,810 --> 00:42:29,160 | early, or I'm going to bed early, I'm going to get up and be up in London, therefore, I'm making time to be in the market. So I'm going to take that trade, |
| 228 | 00:42:29,490 --> 00:42:37,740 | there's no nessus there's not necessarily a guarantee, anywhere that your trading opportunity in terms of time, and freedom isn't going to line up with |
| 229 | 00:42:37,740 --> 00:42:49,530 | the market dynamics that propel the market up or down in your favor. So it's, it's important that you understand that, okay, and these kill zones, while they |
| 230 | 00:42:49,530 --> 00:42:59,370 | are absolutely dynamite in the right hands with someone that understands what should be transpiring. And a combination of all these components together, by |
| 231 | 00:42:59,370 --> 00:43:07,440 | themselves are absolutely going to be useless to you. Okay, they're this heiling a window of time where things generally happen, okay, so don't expect them to do |
| 232 | 00:43:07,440 --> 00:43:19,800 | anything more than that. But go back at when looking when the when the windows of the kill zone on London and New York present, these are tremendous |
| 233 | 00:43:19,830 --> 00:43:29,100 | opportunities for you to be involved with being in that marketplace. With that dynamic in mind, like we had, from September 9, we expected the market to move |
| 234 | 00:43:29,100 --> 00:43:37,410 | higher, we expected the dollar to move lower, we understood that fundamentally, quote unquote, based on interest rates, okay. And that mad magnetic pole it will |
| 235 | 00:43:37,410 --> 00:43:46,740 | have on prices in the currency market. And you saw that unfold here, not necessarily just simply in the Euro, they happen in the cable. Okay, it happened |
| 236 | 00:43:46,740 --> 00:43:58,320 | in the Australian dollar cap, it happened in all of the foreign currency markets, in contrast to the US dollar. Okay, folks, we're going to be looking at |
| 237 | 00:43:58,320 --> 00:44:08,520 | directional bias framework. And before we get into the specifics, I want to ask you a question. Okay. And we kind of visited this earlier on in the video |
| 238 | 00:44:08,520 --> 00:44:20,820 | series, but why do markets move you know, what, what propels markets higher and lower? Is the average retail traders like you and I or is it going to be the |
| 239 | 00:44:20,820 --> 00:44:35,790 | large institutional banks and investment firms? those entities on the larger scale obviously, be on the show without are the catalysts for markets moving |
| 240 | 00:44:35,790 --> 00:44:49,230 | higher and lower? Because their sheer volume you three requires price to move based on some supply and demand factors that they create by their mere presence |
| 241 | 00:44:49,260 --> 00:45:02,250 | in a specific asset class. And it goes without saying that if if a currency is undervalued, and for whatever reason, that large As an institution seems to |
| 242 | 00:45:02,250 --> 00:45:12,390 | believe that it's undervalued and it's going to appreciate in value. With up without that, they will try to accumulate that currency. But because their, |
| 243 | 00:45:12,570 --> 00:45:26,700 | their volume level is such such a great contrast to what we see in a retail side, they leave a very big footprint. Okay, and I use the analogy in this video |
| 244 | 00:45:26,700 --> 00:45:39,420 | series, it's like the elephant getting in this children's pool. Okay? This the displacement of water. It can't be missed. It's obvious. It's when they enter, |
| 245 | 00:45:39,630 --> 00:45:49,920 | you can see there's a, there's a major shift in price. Okay, they don't sneak in, they don't, you know, all of a sudden, they look at that, you know, just 500 |
| 246 | 00:45:49,920 --> 00:45:58,890 | PIP rally just took off out of nowhere. Where did this come from? If you understand what an elephant track looks like, you'll know what happens in the |
| 247 | 00:45:58,890 --> 00:46:08,880 | future, when you see them start to materialize in price action. Okay. It's a rather simplistic way of looking at it. But the main thing you need to |
| 248 | 00:46:08,880 --> 00:46:19,020 | understand as a trader is that you are not going to muscle this market. Okay, you're not going to be the catalyst for it to move up and down. Okay, the |
| 249 | 00:46:19,020 --> 00:46:30,870 | collection of us the retail universe in trading will not move this market. Now, we may cause little minor blips, again, on a very, very short term, okay. But by |
| 250 | 00:46:30,870 --> 00:46:43,110 | far and large, the currents in the marketplace are always going to be dictated by the larger predators, okay. And those entities are what we considered, quote |
| 251 | 00:46:43,110 --> 00:46:54,690 | unquote, smart money. And because they have the sheer volume behind their, their trades, you know, they can manipulate the marketplace on a certain certain |
| 252 | 00:46:54,690 --> 00:47:01,890 | timeframe. Now, the long term trends, obviously, are a result of these |
| 253 | 00:47:02,190 --> 00:47:13,050 | larger institutional Smart Money investors and trading banks. They keep momentum moving in one particular direction or the other, until something changes that |
| 254 | 00:47:13,050 --> 00:47:23,640 | either fundamentally, or technically, that prevents them from wanting to participate in that existing trend. And then that's what will happen is you'll |
| 255 | 00:47:23,640 --> 00:47:33,600 | see a market shift, there'll be a pause, maybe, or an abrupt reversal altogether, and a change in market tide. Your job as a trader is simply just get |
| 256 | 00:47:33,600 --> 00:47:45,450 | involved with what those Smart Money traders are doing. Okay. And we're gonna be dealing specifically with that type of mindset in this section. And the next |
| 257 | 00:47:45,450 --> 00:47:56,070 | section after this, we're going to be dealing with a lot more specifics in terms of how to trade with the insights that's glean with the Smart Money action in |
| 258 | 00:47:56,160 --> 00:48:05,280 | the candlesticks, and then the overall price action of whatever asset class that you trade. And because this is an ICT concept, it's universal. it's applicable |
| 259 | 00:48:05,280 --> 00:48:18,930 | to commodities, it's applicable to stocks, energies, crude oil, metals, gold, silver, palladium, platinum, copper, in, as well as debt instruments, like the |
| 260 | 00:48:18,960 --> 00:48:31,920 | bond and Tina markets. So don't think this is only going to work in forex. It's a measure of understanding how to read institutional ordering, and the order |
| 261 | 00:48:31,920 --> 00:48:46,650 | flow that's apparent in price action. And it does not require a dependency on indicators. Okay, so it's a leading indicator, if you will, it does not lag. |
| 262 | 00:48:46,680 --> 00:48:55,920 | Okay. So I know what you're gonna see the future in what I'm sharing with this concepts, versus what you would glean if you were just using a stochastic or a |
| 263 | 00:48:55,920 --> 00:49:05,490 | MACD or whatever indicator you like to use, okay? So it's a forward looking approach, versus looking at old data and crunching it mathematically to arrive |
| 264 | 00:49:05,490 --> 00:49:19,530 | at whenever you come to believe it's beneficial with indicators. Alright, so what makes a trade? high probability? Okay, no words, strategically speaking, |
| 265 | 00:49:19,770 --> 00:49:32,460 | when you hear mentors or traders or authors or whatever it is that you, you pay attention to, or even me when I say this is high probability, what deems that |
| 266 | 00:49:32,460 --> 00:49:45,090 | setup high probability? Well, the simple fact is, it's generally in sync with what the higher timeframe market charts are telling us. And also with the |
| 267 | 00:49:45,270 --> 00:49:52,680 | current market environment, in other words, there's a risk on risk off, is it moving in, in the general tide of what the higher timeframe markets are doing |
| 268 | 00:49:52,680 --> 00:50:02,070 | because again, we understand that these large animal, predator and these elephants if you will, when they enter the marketplace, They're going to push |
| 269 | 00:50:02,250 --> 00:50:13,170 | price around. And again, think of that analogy, the price of the asset class and we're gonna stick with forex. In this example. Assuming For this example, we're |
| 270 | 00:50:13,170 --> 00:50:28,440 | looking at the fiber, or Euro USD pair for the market the rally, as we see here in the early part of July, up to this point here, okay, that's not coming by way |
| 271 | 00:50:28,440 --> 00:50:36,060 | of retail traders. Okay. Now, that does not mean that retail traders cannot be a part of this move. Okay, but the catalyst was certainly not, you know, |
| 272 | 00:50:36,390 --> 00:50:51,000 | originated by the retail universe. Okay, that was clearly the large dominant players in the marketplace. But there are certain clues that are left in the |
| 273 | 00:50:51,000 --> 00:51:02,220 | chart, that's very clear, if you understand what you're looking for, and how you can use those moving forward. If we understand that our trading is in sync with |
| 274 | 00:51:02,220 --> 00:51:13,950 | that mindset, that's what causes us to qualify or quantify the trade as high probability. Why is a high probability is because it's moving in the journal |
| 275 | 00:51:13,980 --> 00:51:24,120 | tide that's been established by the larger dominant institutional trading. So if we are in sync with that tide, or if we're in sync with that market momentum, |
| 276 | 00:51:24,270 --> 00:51:33,510 | okay, we're not trying to be contrarian in regards to fighting the strong arm Smart Money traders, okay, they're going to take the market where they wanted to |
| 277 | 00:51:33,510 --> 00:51:37,590 | go, regardless of how many indicators you have on your chart, whether it be your, |
| 278 | 00:51:39,390 --> 00:51:45,690 | your electronic, little trading programs that you created and typed up, and maybe you bought it on the internet, and it's made a lot of money in the past, |
| 279 | 00:51:46,200 --> 00:51:54,840 | those absolutely are worthless, unless they're in sync with what the largest additional traders are doing. Okay. And the only way you understand what they're |
| 280 | 00:51:54,840 --> 00:52:06,480 | doing is by price action, and leading indicators, such as we're going to discuss in these next two sections. And I promise you, you're going to jump about 20 |
| 281 | 00:52:06,480 --> 00:52:14,040 | light years ahead, in terms of what you're understanding in price action, and prognostication in terms of technical analysis, okay, that's a promise a |
| 282 | 00:52:14,040 --> 00:52:26,970 | guaranteed Okay. So now, let's take a look at the ICT no brainer, directional bias concepts. Okay. And I say that was tongue in cheek, because I've been, I've |
| 283 | 00:52:26,970 --> 00:52:36,300 | been asked so many times about directional bias. And, you know, how, how do I get it right? More times than wrong in terms of where the direction of the |
| 284 | 00:52:36,300 --> 00:52:45,090 | market is going to go? either be short term, intermediate term or even long term. And it's simply a matter of understanding higher level charts, support |
| 285 | 00:52:45,090 --> 00:52:56,490 | resistance, price action, and the overall tendency that the market will continue to move in one direction or another, until something of equal or greater, that |
| 286 | 00:52:56,970 --> 00:53:10,110 | may cause a break and shift the tide on the higher level charts. So if you have that understanding, every little minor move on on the intraday charts, okay, are |
| 287 | 00:53:10,320 --> 00:53:21,030 | meaningless in regards to hard timeframe. Unless you understand how to apply them then what do I mean by that? We'll use this rally from here in July. Okay, |
| 288 | 00:53:21,030 --> 00:53:30,900 | from the lows made here in the fiber. Again, Euro USD is the daily chart as the market moves from this point here, okay, and we're just going to quickly |
| 289 | 00:53:30,900 --> 00:53:40,170 | identify the, the ranges here. Okay, this point here, and I'm just roughly just dropping, it doesn't have to be the exact we're just talking about a specific |
| 290 | 00:53:40,170 --> 00:53:51,990 | move in price. Okay, from around the 127 57, low to 134 50 level. Okay, that's a pretty significant means of movement between one point to another. Now in terms |
| 291 | 00:53:51,990 --> 00:54:04,740 | of pips, we're talking approximately, almost 700 pips rally from there. Okay. And we were talking about the cable on fiber making a low back in here, both |
| 292 | 00:54:04,770 --> 00:54:15,210 | this point and this point here. So this is no surprise to us in terms of ICT concepts. If you go back on on YouTube, actually talk about the cable acts and |
| 293 | 00:54:15,210 --> 00:54:24,030 | making the very low well in advance, based around some of the principles we're gonna talk about here, and also I'm gonna build upon what's already been |
| 294 | 00:54:24,210 --> 00:54:36,600 | released in my previous works. So now, if we understand this has been established, again, this price has been established by the large institutional |
| 295 | 00:54:36,600 --> 00:54:45,630 | Smart Money traders, okay, those that have huge blocks of trading, that will push the market all over the place. It does not mean that there's not short term |
| 296 | 00:54:45,690 --> 00:54:54,270 | selling opportunities in here. Okay, I'm not, I'm not negating the effectiveness of short term or day trading. Contrary to the larger timeframe, I'm not saying |
| 297 | 00:54:54,270 --> 00:55:06,330 | that, but this series is really designed to get you focused in one only Reading with this tide. Okay? And when you start trading with that, it's same thing here |
| 298 | 00:55:06,330 --> 00:55:15,690 | from this high to this low. If you were looking for just shorts in that environment, your trades number one are going to be, quote unquote high |
| 299 | 00:55:15,690 --> 00:55:21,960 | probability because you're trading in sync with the higher timeframe. macro perspective, okay, because we're looking at a daily |
| 300 | 00:55:21,960 --> 00:55:33,030 | chart and this flow, okay, of orders moving lower. Okay, it's gonna drive pricing lower, even though you'll see these minor little blips going higher |
| 301 | 00:55:33,030 --> 00:55:43,410 | intraday, okay, those are rallies that you sell into much in the same capacity on the flip side of that, all during this point here, any decline just sets up a |
| 302 | 00:55:43,410 --> 00:55:55,320 | retracement in a up move, okay, so you're gonna be trading retracements lower into a upswing in price. Like I said, you're basically buying dips in a rally |
| 303 | 00:55:56,310 --> 00:56:07,080 | and you're selling rallies in a decline. Okay, so as the markets moving lower, you're going to be looking for rallies to sell into, that flies in the face of |
| 304 | 00:56:07,080 --> 00:56:19,350 | what generally neophyte traders anticipate or expect to do rather, okay or react to, okay, because generally, retail neophytes don't have skills to anticipate, |
| 305 | 00:56:19,350 --> 00:56:26,640 | they simply react, you know, an economic report come out, you know, five minutes ago that they had no idea was coming, because they never pay attention to the |
| 306 | 00:56:26,640 --> 00:56:36,210 | economic calendar, something that a seasoned professional will always consult prior to the week beginning. In fact, I know what's coming up for the entire |
| 307 | 00:56:36,210 --> 00:56:46,050 | month, and I have certain dates that I circle, where there's going to be high probability volatility, okay, because I view market economic indicators and |
| 308 | 00:56:46,050 --> 00:56:57,390 | reports that come out methodically out throughout the entire month. These reports, okay, are injections of volatility, and I look for them to set up or |
| 309 | 00:56:57,390 --> 00:57:06,210 | can confirm a continuation of an existing move, I may either be a part of or looking to be a part of, so I'm anticipating versus what the neophyte traders |
| 310 | 00:57:06,210 --> 00:57:16,680 | do. Middle and majority of the folks that populate these online forums that, you know, where they appear as if they may be convincing other people that they're |
| 311 | 00:57:16,680 --> 00:57:24,960 | smart, or, or they're intelligent, or they have a service that's, you know, useful, so therefore, I'm going to sell for $25 a month or $120 a month or |
| 312 | 00:57:24,960 --> 00:57:36,540 | whatever, okay, those individuals, okay, they are nowhere near that degree of trader that you are looking for, you want to go beyond that, okay. And to get in |
| 313 | 00:57:36,540 --> 00:57:45,270 | the realm of what we considered an underground traders like myself, or folks that are just really out there killing it. And they don't, we don't really care, |
| 314 | 00:57:45,780 --> 00:57:53,070 | who believes what we're making, we don't, we don't care about that. You want to get to that same mindset as well. Okay, and the concepts that we're gonna be |
| 315 | 00:57:53,070 --> 00:58:04,410 | learning in this, this particular video itself, it's going to be hugely impactful to your trading, if you apply it correctly. And it's very, very simple |
| 316 | 00:58:04,410 --> 00:58:17,640 | procedures. So I'm pretty confident that it won't be taken out of, you know, the intended context of how to apply it, because it's rather simple. But my advice |
| 317 | 00:58:17,640 --> 00:58:27,690 | to you is trying not to build on this and add more things to it because we're gonna be talking about candlestick patterns. Okay, but there's not a whole slew |
| 318 | 00:58:27,690 --> 00:58:36,720 | of them, like you see, if you pick up, you know, a candlestick charting book, you know, man, I have so many candlestick patterns, how do you? How do you |
| 319 | 00:58:36,720 --> 00:58:49,020 | arrive at what, what to use, okay, and it's just, it's just too much. Okay, it's information overload. Prior to this video series, I presented a whole plethora |
| 320 | 00:58:49,080 --> 00:59:01,140 | of general market insight because it was meant to get you focused in on what specifically is useful when you're digesting price as it's moving intraday, |
| 321 | 00:59:01,140 --> 00:59:12,840 | daily, weekly, you want to be seeing certain things and till you identify the the, the repeating reoccurrence of certain phenomenon that takes place in price. |
| 322 | 00:59:13,830 --> 00:59:25,350 | You can't get deeper into price action study. Okay, imagine how many of you can speak Russian? I can't. So for me to learn it, I got to go through this long |
| 323 | 00:59:25,350 --> 00:59:35,940 | daunting task of understanding how to use simple terms. And, you know, maybe you're in some mannerisms, to commute to communicate that, that language in the |
| 324 | 00:59:35,940 --> 00:59:43,650 | initial stages. It's almost like, you know, when we were in kindergarten is American You know, when we learned English, you start with these picture forms, |
| 325 | 00:59:43,650 --> 00:59:48,420 | this is an apple, you start with a very, very, you |
| 326 | 00:59:49,679 --> 01:00:01,889 | limited scope in terms of understanding and you build upon that. Well, the the original onset of my information being released It went over a lot of people's |
| 327 | 01:00:01,889 --> 01:00:10,499 | heads because they were looking for the get me and get me out. And I need to do this every single day. And they didn't want to take the learning approach to |
| 328 | 01:00:10,499 --> 01:00:19,919 | understanding the market completely. Okay, there's got to be a macro perspective in your understanding. Otherwise, the things that we're going to be discussing |
| 329 | 01:00:19,919 --> 01:00:30,539 | here, okay, you're gonna know if you got a full grasp on the general principles that I've released. Because if this goes over your head, you had no idea what |
| 330 | 01:00:30,539 --> 01:00:36,599 | you missed, go back over all the previous information I released on the internet, okay, and then you'll be able to understand what I'm about to share |
| 331 | 01:00:36,599 --> 01:00:44,039 | here. Because it's simply not looking for a particular white or black candle, and therefore, it's going to do this every time it does. Don't Don't think that, |
| 332 | 01:00:44,099 --> 01:00:54,089 | okay, but if you understand the parameters that we're going to cover, and why it's designed to do what we're anticipating, you'll, you'll see that it's not, |
| 333 | 01:00:54,089 --> 01:01:01,559 | it's not surprised you, you'll know going into every week of the month that you know exactly, specifically what you're looking for, you know, what days of the |
| 334 | 01:01:01,559 --> 01:01:07,649 | week you're going to be looking for it, you know, what time of that day you're looking for it to occur. Now, does that sound like someone that's rolling the |
| 335 | 01:01:07,649 --> 01:01:18,749 | dice? Does that sound like somebody that really doesn't know what they're doing? Okay? The skills that you're going to learn, okay, are going to give you the |
| 336 | 01:01:18,749 --> 01:01:28,229 | ability to remove all of the emotions that's always plagued you. Okay? And I know some of you you're beating your, your fist on the on the couch, probably or |
| 337 | 01:01:28,229 --> 01:01:38,069 | your computer desk at work, come on ICT get to, it's a whole lot of ramble here, okay. But I really want you to understand that it's, it's important, it's |
| 338 | 01:01:38,069 --> 01:01:53,609 | crucial that you understand that this is not needed to be rocket science, okay? If there's a lot of tools that I've, I've shared, I've tweaked that other people |
| 339 | 01:01:53,609 --> 01:02:04,859 | have created, I have my own little spin on it. But some of these things that are just simply there that are very, very generic, okay, they elude all this. And |
| 340 | 01:02:04,859 --> 01:02:13,139 | when I first started looking at charts, it eluded me as well. Okay. But I'm going to strip all this stuff back, I'm open the curtain if you will, okay. And |
| 341 | 01:02:13,139 --> 01:02:23,099 | you're going to look through the, the eyes of ICT, and you're going to have ICT vision. Okay, starting now, I'm going to give you the perspective that you need |
| 342 | 01:02:23,099 --> 01:02:31,409 | as a professional trader, you're going to give you the perspective that you need to see price through the lens of a price action trader, this is what you want to |
| 343 | 01:02:31,409 --> 01:02:41,819 | be looking at, and what you're hunting and what you're stalking and why you're doing it. Okay. So let's go on one thing, start working on the directional bias |
| 344 | 01:02:42,479 --> 01:02:54,689 | concepts. And hopefully, you guys are all frothing at the mouth ready to devour what is going to be shared here. Now, there's going to be a very similar |
| 345 | 01:02:55,139 --> 01:03:07,889 | appearance to a few of these concepts, because I've released video videos in the past where they discovered, you know, by simply applying a moving average or to, |
| 346 | 01:03:08,189 --> 01:03:17,129 | it gives me a perspective to stay with a momentum idea, okay. And that's generally how the funds and institutional traders, you know, keep the momentum |
| 347 | 01:03:17,129 --> 01:03:27,119 | going. And it keeps you from trying to pick a top and pick a bottom when there's really no need for you to be doing that yet. Okay. What you want to do is you |
| 348 | 01:03:27,119 --> 01:03:37,409 | want to start with your daily chart, okay? Again, this is an intermediate term trading strategy, where it really is focusing on one really strong setup per |
| 349 | 01:03:37,409 --> 01:03:45,089 | week. And again, if you're a new trader, that's my advice is start there with your demo account trading, don't try to be in there every single day trading, |
| 350 | 01:03:45,329 --> 01:03:55,979 | but still study on an intraday basis daily after the fact. So you can get an idea of what price action is dealing generally. But your, your daily chart is |
| 351 | 01:03:55,979 --> 01:04:02,759 | your higher timeframe. Okay, and again, we're not negating the importance of monthly and weekly support resistance. But we're just going to be going to the |
| 352 | 01:04:02,759 --> 01:04:12,239 | daily chart as our go to higher and higher time frame chart, okay, and go over the videos previous to this one, where it discloses what time frame charts you |
| 353 | 01:04:12,239 --> 01:04:20,489 | would use for whatever particular type of trading that you may be comfortable with. Alright, so again, with the daily chart, what you're going to do is, |
| 354 | 01:04:20,489 --> 01:04:31,439 | again, using mt four platform, he's got to insert, go to indicators, you're going to get on the trend, you're gonna go to moving average. And you're gonna |
| 355 | 01:04:31,439 --> 01:04:40,859 | be using the 18 period, moving average, and it doesn't matter really what colors you use, we're just gonna go with this. And then you're going to go and add |
| 356 | 01:04:40,859 --> 01:04:49,049 | another one, moving average. Okay, and make sure it's exponential. |
| 357 | 01:04:49,650 --> 01:05:00,930 | It's just to me, it just gives you a better smoothing factor in terms of the moving average and the next period, you're going to be using a nine And you want |
| 358 | 01:05:00,930 --> 01:05:11,250 | to have this color a little bit different, so we're just gonna go with red. Okay, and again, the colors are not important, if you want to know, for |
| 359 | 01:05:11,250 --> 01:05:22,080 | instance, the red one here denying, you want to know what that that color is, in contrast to the slower 18 period exponential moving average, okay? Now the |
| 360 | 01:05:22,080 --> 01:05:32,100 | importance of having a moving average set like this, it would it gives you is it gives you insight in terms of where the institutional flow is. Okay? If you |
| 361 | 01:05:32,100 --> 01:05:42,840 | can't see the price swings for what they are naked, this will give you the, again, quote unquote no brainer. Now again, it's not to promise that you're |
| 362 | 01:05:42,840 --> 01:05:54,300 | never going to have a losing trade. That's not I am promised that no one ever can. But what I'm giving you here, you will not miss the two to four really |
| 363 | 01:05:54,300 --> 01:06:06,210 | handsome setups per month, okay. And if you just do the simple math on that, it works out to be about a one shot, one kill per week. That's all you need to make |
| 364 | 01:06:06,210 --> 01:06:16,260 | a career and I'm talking a wildly successful trading career. And I know that flies in the face of what you're expecting or what you currently understand, but |
| 365 | 01:06:16,260 --> 01:06:24,660 | I'm promising you if someone consistently withdraws 50 pips every single week out of the marketplace, if you know how to do that. And you can control your |
| 366 | 01:06:24,660 --> 01:06:36,030 | equity and know how to apply it. You systematically you have absolutely no idea where that can take you. And it's crazy amount of money, crazy, crazy, insane |
| 367 | 01:06:36,030 --> 01:06:47,310 | amount of money, if you understand how to do that. But the problem is, you made him he made a simple trade last week or yesterday, and you love that feeling, |
| 368 | 01:06:47,340 --> 01:06:54,090 | okay? You get addicted, that to that moment of astonishment. Okay, so you want to go back in there and do it again. Because you'd like that feeling you need |
| 369 | 01:06:54,090 --> 01:07:01,170 | your fix. That was the hardest thing for me to overcome. And I'm promising you that's going to be the hardest thing that you're gonna have to deal with. |
| 370 | 01:07:01,530 --> 01:07:09,870 | Because, you know, when we first get involved, we can, we can expect to lose money, okay, and for whatever reason, we like to block the losers out and we |
| 371 | 01:07:09,870 --> 01:07:17,940 | focus on winners, but you need to be able to look at them, you know, the same way their trades and you need to learn from them. But more importantly, when you |
| 372 | 01:07:17,940 --> 01:07:28,080 | make money, okay, you need to act slow when you're trying to make money and act fast. Okay, or react fast is your only time you get permission from ICT to be a |
| 373 | 01:07:28,080 --> 01:07:40,740 | reactionary trader, you react quickly to preserve or protect your equity or capital, you move slowly to attempt to make money, okay? fools rush in, where |
| 374 | 01:07:40,740 --> 01:07:50,280 | wise man tread softly and slowly, okay, we don't plunge in there trying to just go on and try to make the next dollar. I want to know what I have is lined up |
| 375 | 01:07:50,310 --> 01:07:58,140 | with the higher timeframes, there's a nice support resistance level, momentum is moving higher order flows moving higher, then I'll be looking for a long, okay, |
| 376 | 01:07:58,140 --> 01:08:05,670 | in a kill zone based on you know, the retracements back in an existing price swing, and we're going to talk about that as we go along. But for now, the |
| 377 | 01:08:05,670 --> 01:08:18,090 | building block starts with having the two moving averages right here. Okay. When the nine period moving average is below the 18. What that establishes, that's |
| 378 | 01:08:18,120 --> 01:08:20,250 | your framework for |
| 379 | 01:08:25,860 --> 01:08:39,390 | when the nine period or in this case red, moving averages below the blue 18. Period, okay, that establishes a bearish framework, okay, in other words, or I |
| 380 | 01:08:39,390 --> 01:08:50,580 | like to call a sell model, okay or sell program rather. What that does is it gives you the greenlight go to look for selling opportunities to be a bear. |
| 381 | 01:08:50,970 --> 01:09:00,780 | Okay, or you want to be selling into rallies, okay. And when the nine period is above the 18 period, what you're looking for is buying opportunities where you |
| 382 | 01:09:00,780 --> 01:09:12,030 | want to be buying a dip, okay, intraday, or over the course of a few days. If you're a short term trader, as we make a retracement lower, okay, all that's |
| 383 | 01:09:12,030 --> 01:09:24,750 | doing is is creating a new buying opportunity. Okay, and that's what keeps you on the right side of the marketplace. And you arrive at what was discussed a few |
| 384 | 01:09:24,750 --> 01:09:32,760 | moments ago, what classifies a trade as high probability, this is high probability. Okay? And what I want to draw your attention to and here is, again, |
| 385 | 01:09:33,120 --> 01:09:40,200 | avoid the notion of having to feel like you have to pick the tops and the bottoms in the marketplace, okay? There's tools that I have that helps you do |
| 386 | 01:09:40,200 --> 01:09:47,730 | that on a higher timeframe macro perspective, but we're looking at more dynamic trading. This will allow you to get into the trenches, immediately start |
| 387 | 01:09:47,730 --> 01:09:56,430 | applying the tools, okay, on a weekly basis, and then hopefully in your demo account, you'll see the fruits of your labors. But it also I've, I specifically |
| 388 | 01:09:56,430 --> 01:10:08,130 | chose this timeframe because it will it will force you To not over trade, which is one of the biggest, huge barrier for new traders. Day Trading is not everyday |
| 389 | 01:10:08,130 --> 01:10:20,010 | trading, okay. And I'm not teaching you day trading here, I'm teaching you high probability one shot one kill, kill them hard, I mean, just knock them dead type |
| 390 | 01:10:20,040 --> 01:10:28,410 | setups where if you just sit back and you wait for these types of setups and you're demonstrating, you'll see a huge increase of your, your confidence, your |
| 391 | 01:10:28,410 --> 01:10:39,000 | understanding the marketplace, you will hone your patience, you may not have patience now. But using the concepts in this series, you are forced to hone your |
| 392 | 01:10:39,000 --> 01:10:50,280 | patience. Okay, a lot of folks that I've been contact with over the last few years because of my presence on a particular market form. They have struggled |
| 393 | 01:10:50,280 --> 01:10:59,340 | with patients, they've struggled with these, these demons, if you will, internally. So I'm forcing you go back to this type of perspective, okay, and |
| 394 | 01:10:59,340 --> 01:11:08,280 | number one is going to limit your excess trading, it'll take it down a huge notch, okay, because you're only gonna be trading at maximum, you know, a few |
| 395 | 01:11:08,280 --> 01:11:18,960 | times a week, okay, dependent on the Killzone and the setup. And you're forced to have a larger perspective in terms of your analysis. So really, the worst |
| 396 | 01:11:18,960 --> 01:11:29,640 | case scenario, I think that a trader would have would be maybe, you know, 12 to 14 trades the entire month. And that's still my, in my opinion, that's a busy |
| 397 | 01:11:29,640 --> 01:11:38,190 | trader. I know some of you guys get in here and you five or 10 minutes, and you catch them five or six pips. And that's wonderful. If that's what you do. That's |
| 398 | 01:11:38,190 --> 01:11:46,440 | wonderful. I just think that's crazy. But I used to do it, and it doesn't pay off the amount of time you put in. If you have this perspective, you're gonna |
| 399 | 01:11:46,440 --> 01:11:53,340 | see if it was another water. And I'm not saying a whole lot of time in front my computers, okay. And which is what you want to be doing to professional traders |
| 400 | 01:11:53,340 --> 01:12:00,030 | don't don't live in front of monitors, okay, they don't do it. junkies do. Okay, action hounds do. |
| 401 | 01:12:01,320 --> 01:12:12,840 | And they may do a trading for a living, okay, but I'm not promising you their own age all the time, they're probably dumping gallons of caffeinated drinks in |
| 402 | 01:12:12,840 --> 01:12:21,300 | their body, okay, and high sugars. And it's just their health probably really, really stinks in terms of, you're not being a part of the real world outs away |
| 403 | 01:12:21,300 --> 01:12:31,320 | from these charts. So this is going to give you that ability to do that. So we already identified when the parameters are in place for a selling framework, |
| 404 | 01:12:31,350 --> 01:12:42,780 | okay, when the nine is below the 18. And then when the nine is above the 18, that's the framework to be a buyer. Okay? Again, do not, do not worry about |
| 405 | 01:12:42,780 --> 01:12:55,650 | catching these turning points, okay? Don't worry about that. Because what I'm allowing you to do is you're going to run into where your trading stops being |
| 406 | 01:12:55,650 --> 01:13:06,990 | profitable. And you'll have to, number one, adjust your equity, you'll have to calibrate your risk to reward you'll have to calibrate your leverage based on |
| 407 | 01:13:06,990 --> 01:13:16,890 | your equity decline, okay? Too many folks overlook that. Okay. And this is going to force you to do those very things. Okay. professional traders and money |
| 408 | 01:13:16,890 --> 01:13:25,950 | managers, we do that always. On a daily basis, we're always looking at what we're risking what we stand to make, and how are we going to remove that risk to |
| 409 | 01:13:26,010 --> 01:13:33,660 | do zero, and in lock in a profit, that's where the majority of my analysis is, it's not looking at charts and waiting for the biases, by signals in the sell |
| 410 | 01:13:33,660 --> 01:13:43,740 | signals. That's, that's the easy stuff. The hard part is knowing that the markets predisposed to go higher. And in fighting that urge to risk 8% of my |
| 411 | 01:13:43,740 --> 01:13:53,160 | account, you know, 20% of my account, because I see this stuff happen all the time, you a reasonably expected and anticipated to unfold, but there's no |
| 412 | 01:13:53,160 --> 01:14:05,310 | guarantee it's going to, okay, so I'm giving you these, these skills, okay to work with, and give you a mindset that hopefully will guide you to consistency. |
| 413 | 01:14:06,480 --> 01:14:15,420 | So let's look at a, just a brief sample set of how this is applicable, we're just going to go ahead and scroll through just briefly. Okay, and we'll start |
| 414 | 01:14:15,420 --> 01:14:22,380 | here again, I'll just, I don't want to go back too far. Because we could make a huge, you know, treatise over this whole thing and really not get to the other |
| 415 | 01:14:22,380 --> 01:14:32,880 | things that I want to cover. But we have the nine period break below here. Now, price can step through both of these moving averages. Okay, that's not important |
| 416 | 01:14:32,880 --> 01:14:43,890 | in here. The important fact is that if the nines below the 18, your mindset is I'm looking for sell scenarios and looking for rallies to sell into, okay. And |
| 417 | 01:14:44,460 --> 01:14:54,000 | you can expect the blue line or the 18 period, okay to act as like a dynamic support resistance level. Okay? I don't like trend lines. I don't have faith in |
| 418 | 01:14:54,000 --> 01:15:04,440 | them. Okay, but when you have a moving average like this, it just, it allows me to anticipate price reacting, it's very nice example of it here. Okay, and nice |
| 419 | 01:15:04,440 --> 01:15:13,320 | example of it here as well. And the bodies of the candles remained below the 18 Here, here. And so even though we did have some wick step through it, the body |
| 420 | 01:15:13,320 --> 01:15:23,190 | itself was unable to close above and remain lower, and you can see that the result of the market action was going to the downside. So when you have that in |
| 421 | 01:15:23,190 --> 01:15:35,490 | place, okay, when you have that in place, it allows you to number one, view the market with a higher level institutional momentum perspective, okay. And that's |
| 422 | 01:15:35,490 --> 01:15:43,770 | a whole lot of words there. And I'm not trying to be wordy or sound intellectual, I'm trying to communicate the understanding that I have in the |
| 423 | 01:15:43,770 --> 01:15:49,860 | marketplace, because I can't, if there was a resource for me to say, hey, go to this book, and this is what it teaches you, I would have saved myself a lot of |
| 424 | 01:15:49,860 --> 01:15:57,120 | trouble. But there's no books out there that I'm aware of. And I have a huge library of it. So I this is the way for me to create it like a language or |
| 425 | 01:15:57,120 --> 01:16:07,950 | vocabulary for us to interact so you can understand the concepts, okay. So when we have the nine period above it, above the 18, we're buying, and when the nine |
| 426 | 01:16:07,950 --> 01:16:18,030 | periods below the 18, we're selling, okay? That by itself will get you into a whole lot of wonderful, sweet little sweet spots in the market, we can just take |
| 427 | 01:16:18,030 --> 01:16:26,490 | these opportunities and be happy with that. But because I'm ICT, that's not enough, okay, I got to take it to the nth degree. And we're going to be looking |
| 428 | 01:16:26,490 --> 01:16:46,350 | at how we can further amplify the effectiveness of directional bias understanding with now we're gonna look at a series Okay, of all this use a slow |
| 429 | 01:16:46,350 --> 01:17:00,480 | area to okay in here, that was a buy. area from this point in here, |
| 430 | 01:17:01,980 --> 01:17:30,990 | to here was a buying area. And right in here became a selling framework where you're really just focusing on being a bear. And we'll just use that because |
| 431 | 01:17:30,990 --> 01:17:40,020 | that's a nice little one. Price swing in here, we can work with him. And what I'm going to do now is I'm going to take the moving averages off because while |
| 432 | 01:17:40,020 --> 01:17:50,580 | we've already established where the averages have communicated the bullishness or bearishness that we should be focusing on Okay, so now with those moving |
| 433 | 01:17:50,580 --> 01:18:02,280 | averages away, we're going to apply now market structure and order flow, okay, and or market flow, whatever you want to call it, but the the premise of where |
| 434 | 01:18:02,340 --> 01:18:12,360 | swing highs are taken out to the upside. Okay, that is momentum on the upside, in addition to when you have these little areas where market is generally |
| 435 | 01:18:12,360 --> 01:18:22,830 | looking to move higher or lower based on these two components blended together. And what I mean by that, well, we're gonna go up to the indicator thing here on |
| 436 | 01:18:22,830 --> 01:18:36,780 | Mt four. And, again, I do not require a five day or five candle pattern to create a fractal. Okay, and when I say fractal, it's this little thing about |
| 437 | 01:18:36,780 --> 01:18:51,270 | Bob, that's on Mt four. And I probably should use a different color, which I'm going to do now. And we're just going to use, we use red, that'll pop off pretty |
| 438 | 01:18:51,270 --> 01:19:06,870 | good. Alright. In here, we have a fractal high, or basically a swing high. In other words, it's a candle with two lower high candles on both sides of it. For |
| 439 | 01:19:06,870 --> 01:19:15,420 | me and my trading, I simply use this candle with the higher low here, I'm sorry, with a lower high here and a lower high here, okay, between this pattern this |
| 440 | 01:19:15,450 --> 01:19:22,260 | mean sorry, this candle, this candle and this candle, that alone would have presented a swing high to me and if that was violated on the upside, you know, |
| 441 | 01:19:22,290 --> 01:19:35,250 | that would have been enough for me. Okay. We have a swing high here. We have a swing low here. We have a sling swing low here as well. Now, as price moved |
| 442 | 01:19:35,760 --> 01:19:48,810 | above, this swing high here right there. Now we have both swing high broken out or market structure has shifted upwards, while we're in an area where those two |
| 443 | 01:19:48,810 --> 01:20:03,180 | moving averages are implied. Momentum is bullish, okay. So from this point on here We are looking to be a buyer we're gonna be looking for a retracement of |
| 444 | 01:20:03,180 --> 01:20:16,050 | some sorts okay to be a buyer in okay now you see a minor little retracement here and then in rallies off now even though we have a bearish candle here, |
| 445 | 01:20:16,410 --> 01:20:27,780 | okay, we did move higher just in terms of pips from the time at work this this swing high here. We're going to use that range to the high up here. That's 179 |
| 446 | 01:20:27,780 --> 01:20:41,610 | pips. Okay 179 pips? That's inside of one week. Do you think you can get 50 pips out of that? Is it reasonable to think that one would be able to? I hope, I hope |
| 447 | 01:20:41,610 --> 01:20:53,730 | do you think that at least, okay, again, we have price. Still above this swing high, and the only recent swing low prior to that point is here. So as long as |
| 448 | 01:20:53,730 --> 01:21:03,630 | prices and break that swing low, we are still bullish, we have a swing low form here. But notice that that's the only one since this one was formed. So market |
| 449 | 01:21:03,630 --> 01:21:15,960 | structure and order flow suggests that we are still go for buying opportunities. Okay. Now, price retraces again, okay, inside of this range, and we broke this |
| 450 | 01:21:15,960 --> 01:21:27,330 | swing high here. So when that breaks, this is the range. Right here, this is that little price move here. If we looked at just that range alone, again, we're |
| 451 | 01:21:27,330 --> 01:21:40,260 | working on a daily chart guys, this is not an intraday chart, if I look at using the fib, john to draw so you guys can see. Here's the 79 cent treatment level |
| 452 | 01:21:40,260 --> 01:21:52,080 | right in here. Okay, now true, it violated just a little bit, but ultimately spent very little time, okay, blowing through it going on downside and we moved |
| 453 | 01:21:52,080 --> 01:21:55,680 | higher again. That by itself, |
| 454 | 01:21:58,860 --> 01:22:07,920 | is insightful, because number one, it allows you to understand where these fractals are forming. Okay, and I'm saying fractal in sense of the price |
| 455 | 01:22:07,920 --> 01:22:16,680 | pattern, not these little arrows, okay, and that's probably confusing. I wish they would have named this indicator for these swing highs and swing lows is |
| 456 | 01:22:16,710 --> 01:22:25,290 | something different. But Bill Williams, for whatever reason, felt he needed to call it that. It's not a fractal, by my definition, or many others if you if you |
| 457 | 01:22:25,290 --> 01:22:36,390 | really looked around. But we have a price rally from in here, up here. Now we're going to talk about how this could have been viewed in advance before this |
| 458 | 01:22:36,390 --> 01:22:48,840 | happening, where over here, something goes on, that's useful to tell when there would be an opportunity to be a buyer. But what before we get to that, here's |
| 459 | 01:22:48,840 --> 01:22:59,610 | another opportunity just by using the the range, that's 130 pips from that point to here again, within a week's time, so there's plenty of opportunity to be |
| 460 | 01:22:59,880 --> 01:23:10,380 | profitable, okay, and catch your 50 pips or so a week. And again, I'm trying to give you a realistic low an objective that flies against everybody else teaching |
| 461 | 01:23:10,380 --> 01:23:18,720 | that you got to make 2000 pips a month, okay, because you don't need to do it. My question is this. If these guys are making 2000 pips a month, okay, or 20,000 |
| 462 | 01:23:18,720 --> 01:23:30,150 | pips a year, why aren't they billionaires? Think about that. They're everywhere. Everybody's selling courses. Why is there a billionaire out there? Okay, because |
| 463 | 01:23:30,150 --> 01:23:40,410 | it's crap. Okay, look, you can have a million pips all you want. It's how much you manage your money behind those pips. Okay, and I guarantee you 99% of them |
| 464 | 01:23:40,440 --> 01:23:47,610 | don't do right things with their equity in their money. So just something because you're showing me a spreadsheet, or you have a video on YouTube saying |
| 465 | 01:23:47,610 --> 01:23:56,250 | you made you know, X amount of pips means absolutely nothing to me, and it shouldn't mean nothing to you. Okay? So, again, think you don't need a whole |
| 466 | 01:23:56,250 --> 01:24:04,530 | lot. So if we're gonna focus in just on 50 pips a week, that's a realistic obtainable goal. And it's something that could be duplicated over and over and |
| 467 | 01:24:04,530 --> 01:24:12,690 | over again, like I do like a cookie cutter approach. You keep doing the same thing over and over and over again, sometimes you run out of dough. Okay, and |
| 468 | 01:24:12,690 --> 01:24:20,820 | what you got to do, you got to follow it up and work it out. Again, spread a thin spread a thinner, it means risk less, okay, cut back your equity. Okay? And |
| 469 | 01:24:20,820 --> 01:24:27,600 | then you keep doing that same thing, milk it for all it's worth doing the same thing, don't deviate, don't change the parameters, and then by approaching the |
| 470 | 01:24:27,600 --> 01:24:33,300 | market like that, number one, you're not gonna be surprised when you lose money because you're gonna know that okay, that didn't work and I'm not going to be |
| 471 | 01:24:33,330 --> 01:24:42,570 | jumping back in again, because my system or method or parameter says that I can't so I'm limiting my exposure in my engagement to the marketplace to just |
| 472 | 01:24:42,570 --> 01:24:56,190 | this okay. Which is hugely important because 90% of traders don't do that. Okay. Now, even in here, now, this is why I don't like candlesticks because it's very |
| 473 | 01:24:56,190 --> 01:25:07,950 | deceiving. If you are looking at price action one specific manner and then what I mean by that is this. We have a low here, okay? And if you look at the range |
| 474 | 01:25:07,950 --> 01:25:17,130 | between this low of this candle to this candle here, we have a price swing. Okay, if you looked on a lower intraday price model, you'll see that this is a |
| 475 | 01:25:17,130 --> 01:25:26,760 | very nice price swing. Okay? It's disguise many times because many, many folks don't even look at a daily chart, but this here is a range. Okay, this is a |
| 476 | 01:25:26,760 --> 01:25:37,920 | tradable range. If you look at what was available from that retracement, okay, again, cancel the idea of this being a bearish candle. This bearish candle is a |
| 477 | 01:25:37,920 --> 01:25:53,070 | bearish candle price moves from this low to this candles high here. It's 123 pips again, that was made during bearish candles. Okay, even though the market |
| 478 | 01:25:53,070 --> 01:26:02,100 | did come down here, I'm not I'm not, you know, ignoring the elephant in the room here, if you will, when this two or three day down move I'm not suggesting that |
| 479 | 01:26:02,100 --> 01:26:11,430 | didn't occur or what insignificant? What I'm saying to you is if you stick to the model of looking at the low to high and then retracement during an ideal |
| 480 | 01:26:11,580 --> 01:26:20,760 | timeframe, okay, notice we didn't break this swing, let it form here, we came down into the range between that candles low and this candles high if we use our |
| 481 | 01:26:20,760 --> 01:26:34,710 | fib, okay, pull that up. Okay, we have a reasonable idea where to anticipate again, where the low should form. Okay. And if you looked at |
| 482 | 01:26:36,900 --> 01:26:45,930 | probably splitting hairs, but I really want to communicate as well. We're only talking about 11 pips from where the sending lines retracement level is and |
| 483 | 01:26:45,930 --> 01:26:56,670 | where the actual low that candle formed. Okay. So, again, when we get to stop loss placement, and you know, overall risk controls, you're going to see that |
| 484 | 01:26:56,670 --> 01:27:05,940 | there's simply no reason to fear where you should be placing your stop at, okay, there's no, there's no reason to guess as to, you know, am I going to get |
| 485 | 01:27:05,940 --> 01:27:11,850 | stopped out and fearing it also, because if you get stopped out where we're going to teach you, you need to be getting out of the market there, okay? |
| 486 | 01:27:11,850 --> 01:27:20,700 | Because it's probably gonna be much more of a move in against you, then if you were to stay in it, okay. So we have an opportunity to be a buyer here as well. |
| 487 | 01:27:22,500 --> 01:27:31,560 | The market comes down, creates another consolidation and it moves out of the consolidation. Okay, and the market structure, an order flow shifts bearish |
| 488 | 01:27:31,650 --> 01:27:42,330 | here, when we trade low, lower right there, because we broke that swing low. Now when this broke down, okay, we have to wait for another shift in market |
| 489 | 01:27:42,330 --> 01:27:51,990 | momentum. Okay. And this is the reason why I do not like this little fractal indicator, okay? Because remember, I told you earlier, that all I require is |
| 490 | 01:27:51,990 --> 01:28:02,250 | three bars, or three candles to create a swing high. that's occurring right here. Notice there's an absence of fractal arrow, like it says here. That's |
| 491 | 01:28:02,250 --> 01:28:15,270 | because this big old candle here, okay? It's high was above this candles high, which would negate the formation of this arrow, or an arrow like this, or |
| 492 | 01:28:15,270 --> 01:28:29,760 | fractal up arrow, because the parameters require this candle to be a lower high than this one. But is this not a swing high? Yes, because it has a lower high on |
| 493 | 01:28:29,760 --> 01:28:37,590 | both sides of it. Okay, so this is a swing high. As soon as this candle broke here, we're back on the bullish momentum. Okay, and then we entered this range |
| 494 | 01:28:37,590 --> 01:28:49,230 | here. Okay, we started another series of days where those two moving averages have the nine above the 18, moving average. So it's we're a bullish framework, |
| 495 | 01:28:49,740 --> 01:29:01,260 | when market structure is bullish, okay, because again, we see this swing high here, when it broke to the upside. Now we have to wait, okay, and expect to see |
| 496 | 01:29:01,260 --> 01:29:11,280 | the nine be above the 18. Again, we're looking at a daily chart. During this time period, what you're gonna be looking for is opportunities where price |
| 497 | 01:29:11,280 --> 01:29:20,580 | again, find support, pulls back within a range, okay, either on a four hour chart or a one hour chart. And when you see what we're going to be talking about |
| 498 | 01:29:20,640 --> 01:29:29,700 | later on, in this video, what you're specifically looking for and hunting 90% of the time, it's there and there's no reason for you to rush to chase price. If it |
| 499 | 01:29:29,700 --> 01:29:40,380 | doesn't do these types of things. You don't take a trade. Okay. So again, we're looking to be a buyer here and all the ranges in here. Again, with all these |
| 500 | 01:29:40,380 --> 01:29:50,640 | candlestick patterns, you could have all kinds of articles and such all these are the spinning tops, these are the dojis and and, you know, whatever you want |
| 501 | 01:29:50,640 --> 01:30:03,660 | to call it, the boxcar Willies I don't I'm not a subscriber of you know a plethora of candlestick patterns really either The doji is long legged doji the |
| 502 | 01:30:03,660 --> 01:30:14,550 | hammers, and I like railroad tracks. And that's about it. I don't have any other faith in any other pattern. So you can kind of like leave that in your new book. |
| 503 | 01:30:14,550 --> 01:30:23,460 | Don't ever ask me about candlestick patterns outside of those, because I don't subscribe to the views that are useful. Okay. Now, on a daily chart, we have the |
| 504 | 01:30:23,550 --> 01:30:32,700 | the highs in here. Okay, and look at the bodies of these candles, you see that? This is where I like candles. Okay, these are these are the ideas that I think |
| 505 | 01:30:32,700 --> 01:30:46,770 | are beneficial to using candlesticks. Do you see how this dealing range level? Okay, if we take that out, see how the bodies can hear the opening was at that |
| 506 | 01:30:46,770 --> 01:30:57,450 | level to close that candle was at that same level. The opening was just a pip below that level here. And the close of that candle was I'm sorry that I've been |
| 507 | 01:30:57,450 --> 01:31:06,990 | saying that wrong. Sorry. the close of this candle is on that. And the open on this candle is at that same level. And the close of that candle is a pip below |
| 508 | 01:31:06,990 --> 01:31:19,770 | it. And the open on this candle is right at that same level. Do you see this candle here? Okay, after we had a little minor retracement here, okay, we had a |
| 509 | 01:31:19,770 --> 01:31:30,300 | retracement, this is the range because we have this dealing range here. When price broke through it. Okay, see how this is a swing high. And see how this is |
| 510 | 01:31:30,300 --> 01:31:30,960 | a swing high. |
| 511 | 01:31:32,640 --> 01:31:44,340 | When price broke through it. Mark structure confirms once again that it's only upside, okay. But we also have this dealing range support. So we broke through |
| 512 | 01:31:44,340 --> 01:31:54,360 | this. Now, just because this would be classified as support level, an old resistance turn support does not mean that price needs to get only back down |
| 513 | 01:31:54,360 --> 01:32:06,030 | here. Okay, so what do you how do we use that information? Well, if you pulled your fib, from that level, up to the range high, which is here, okay, that can't |
| 514 | 01:32:06,030 --> 01:32:16,590 | look as we pulled down into intraday, okay. inside of that range, you come right down to that 70.5 level, okay, you see how that's useful to you, we retraced |
| 515 | 01:32:16,590 --> 01:32:32,250 | within that. So having that, that gives you a an idea, again, where to anticipate price action to retrace into. That's not that's not all of the |
| 516 | 01:32:33,450 --> 01:32:43,740 | characteristics we'd look for. But we will be looking at other things that, you know, allow us to break down on a four hour chart where we can also look for |
| 517 | 01:32:44,610 --> 01:32:51,270 | institutional order flow that to support the idea and the notion that we should be expecting higher prices. And again, we move higher and higher and higher, the |
| 518 | 01:32:51,270 --> 01:33:03,150 | higher swing lows here, okay, again, are higher in each successive move higher. Okay. And then we see market structure break down in here. Okay. And we did |
| 519 | 01:33:03,150 --> 01:33:12,570 | rally off again in here a little bit. Okay. While we're in this screen by framework, where we overall would still be looking for opportunities to be a |
| 520 | 01:33:12,570 --> 01:33:26,040 | long trader. I want you to see the below here, or this low here, either one very close in proximity, or doesn't use this one here. If you look at that low up to |
| 521 | 01:33:26,040 --> 01:33:33,120 | this high. Can you see that? I moved fit over here so you can see the lines. |
| 522 | 01:33:38,130 --> 01:33:46,530 | What I did was I use the range of this low to this high again, this is a daily chart. Price comes right down into what level the 79% retracement level, look |
| 523 | 01:33:46,530 --> 01:33:57,840 | how many opportunities where price stayed within that optimal range. Okay. And it rallied up if you look at where we were in regards to that price movement. |
| 524 | 01:33:59,070 --> 01:34:11,460 | Again, using these bodies of the candles up to the high of this candle right here. That's 156 pips again 156 pips within a few days that's inside of one |
| 525 | 01:34:11,460 --> 01:34:23,280 | week's range. There should be no reason why you can't capture at least 50 pips out of that. Okay, the opportunity here Okay, the bottom line is is there's |
| 526 | 01:34:23,280 --> 01:34:35,640 | opportunity for you to make money and still quote unquote be wrong, because ultimately the market did move lower outside of this area here Okay. And then we |
| 527 | 01:34:35,640 --> 01:34:49,170 | moved into a selling framework. Okay, you have the market break it down making lower lows, okay and lower highs. So we had the swing high here, with a fractal. |
| 528 | 01:34:49,230 --> 01:34:59,100 | Now I got to change this fractal to a different color because it will not be seen against the red. So we have this fractal low here. price breaks down |
| 529 | 01:34:59,250 --> 01:35:09,720 | through it. Again confirming that we are in both concepts. agreeing with lower prices, we have the two moving averages, the nine is going to be below the 18. |
| 530 | 01:35:09,750 --> 01:35:18,150 | Remember, we marked out this box that was given you the bearish framework to expect lower prices, momentum wise institutionally did going to be looking for |
| 531 | 01:35:18,180 --> 01:35:29,370 | order flows lower. Okay. And you see, technically, they are moving lower because we see those swing low here, right down. Okay. So when you see that happen, you |
| 532 | 01:35:29,370 --> 01:35:37,380 | are going to be doing is you're gonna be looking for the ranges. Okay, to form, you're gonna be looking for rallies, you're going to sell into those rallies. |
| 533 | 01:35:38,550 --> 01:35:56,190 | See this low here, and we see the price action move up here, this high down to that low to the 62% retracement level. Okay. And, again, we're going to discuss |
| 534 | 01:35:56,340 --> 01:36:06,300 | a concept that is useful in terms of institutional order flow, where we can again, identify areas on a lower timeframe where this is again, one more area |
| 535 | 01:36:06,300 --> 01:36:18,390 | where water flow and short term market structure shifting, and where institutional order blocks are retreated into to get a another piece of the pie |
| 536 | 01:36:18,390 --> 01:36:24,390 | if you will, before they start to move lower, you can see when when the market moved up into that range, it did not spend a whole lot of time there. And that's |
| 537 | 01:36:24,390 --> 01:36:35,640 | why he had this very thin wick, okay, the market opened here, rallied up and then traded lower and closed lower and that creates that black bar. Okay, the |
| 538 | 01:36:35,640 --> 01:36:47,880 | close is near the low of the day. You can see the close on this candle is 130 64. With the low at 130 47. |
| 539 | 01:37:21,480 --> 01:37:36,450 | gas price moves lower its brakes, each new successive lower swing lows and each swing high is lower as well. Now we have, again, an opportunity where the market |
| 540 | 01:37:36,570 --> 01:37:51,660 | creates a swing low here, trades lower, okay, and comes back here and takes out this this swing high. Okay. That's going to happen a few different times while |
| 541 | 01:37:51,660 --> 01:37:59,610 | we are in training environments, because again, you're going to come back and take the stops and search for liquidity. Whenever you see swing highs like this |
| 542 | 01:37:59,610 --> 01:38:06,240 | on a daily chart naturally, that's where support resistance is going to be implied by traders and they're going to think that their stop loss orders are |
| 543 | 01:38:06,240 --> 01:38:15,090 | protected above that, and you'll see the market rally up just above it, take it out and then break lower, it still does not change the fact that we still are |
| 544 | 01:38:15,090 --> 01:38:23,700 | working within a range, okay, and that being this high to the low. And if you'd look it up in here, you'll see opportunities to be a seller on the lower |
| 545 | 01:38:23,700 --> 01:38:34,380 | timeframe. Again, once we break lower here, we have everything in an agreement as well. Okay, and I'm going to subscribe to the notion that you probably may |
| 546 | 01:38:34,380 --> 01:38:46,440 | have lost money here or missed opportunities. We're just gonna call this a dead opportunity area where we didn't get any kind of reasonable positive equity |
| 547 | 01:38:46,440 --> 01:38:57,360 | increase, there was nothing that we profited from in here. Everything gets back in sync here when this candle breaks below this swing low here, okay. And then |
| 548 | 01:38:57,360 --> 01:39:09,300 | we have the high here is penetrating here. So now on this candle, everything's bullish, okay inside of this overall sell framework. So what we doing is what |
| 549 | 01:39:09,360 --> 01:39:25,410 | we'd sit on our hands until when here, okay, we expect what see this low here, what is that? That is a swing low. Again, the fractal indicator arrow is useful |
| 550 | 01:39:25,410 --> 01:39:36,300 | to communicate general support, sorry, swing highs and lows. But again, this is the reason why I don't like it by itself because it will avoid printing an era |
| 551 | 01:39:36,300 --> 01:39:45,270 | where I would classify that as a swing low. So when market opened up down here, market structure and order flow has shifted to bearishness again, okay. And this |
| 552 | 01:39:45,270 --> 01:39:54,630 | being the most recent swing high as soon as this candle closes and this one opens up, this one would be swing high to me. This is a swing low and everything |
| 553 | 01:39:54,630 --> 01:40:06,240 | will be bearish here. Okay and until that high is taken out on the upside, okay or Any newer swing high forming is taking out, I would be looking for lower |
| 554 | 01:40:06,240 --> 01:40:16,530 | prices. Okay, and the same thing happens here, we have this swing high, because we have a candle with a lower high here and lower high here. So this is a swing |
| 555 | 01:40:16,530 --> 01:40:30,060 | high to me. Okay. price breaks through it here. So now we have on a very short term market structure being bearish. Okay, I'm sorry bullish, again inside of a |
| 556 | 01:40:30,060 --> 01:40:39,360 | bearish framework. So we're looking to do what we're selling into rallies, we're selling into it. Okay. So this is where you're going to be applying the what we |
| 557 | 01:40:39,900 --> 01:40:53,100 | commonly refer to as market flow order flow, you, you will see on a daily chart, many times rallies going against what would be considered market flow being |
| 558 | 01:40:56,040 --> 01:41:04,470 | bullish and always this, we have this swing high here, that's a candle with two lower highs on either side of it, when this candle blew up through it will be |
| 559 | 01:41:04,470 --> 01:41:14,850 | considered bullish daily market flow, or waterflow. But you have that range here that you got to work within. Okay. And that looks like this. |
| 560 | 01:41:20,250 --> 01:41:28,800 | Right up into that area here. Both candles stop dead on the 17th centuries on level, and then boom, move lower. Okay, now we have everything back in sync, |
| 561 | 01:41:28,800 --> 01:41:40,650 | again, we had this low taken out, we have both the framework on the moving averages suggesting lower prices. And the order flow and Mark flow is bearish |
| 562 | 01:41:40,650 --> 01:41:51,420 | because we took out the swing low. So everything's moving lower again. We we continually looking for selling opportunities, okay. And inside this is area |
| 563 | 01:41:51,420 --> 01:42:04,140 | here. Now, again, we have the market creating a nice rally and reversal. Again, we are not trying to call the lows, we are not looking for the you know, the |
| 564 | 01:42:04,140 --> 01:42:12,240 | tops and the bottoms in the marketplace. So even if we were to take a trade in here somewhere, okay, if something lent to our analysis that we should suggest |
| 565 | 01:42:12,240 --> 01:42:21,810 | taking a short trade and we got stopped out, what do we do, we accept the loss and we move on, okay. Right in our journal, keep it you know, as a learning |
| 566 | 01:42:21,810 --> 01:42:33,090 | process, and continuously looking for the next opportunity. All this right here, okay, would be the same information this applied going forward. Now this, we |
| 567 | 01:42:33,090 --> 01:42:46,200 | only had these two examples in our, our analysis and study. Again, we had that red area area and the two green areas. Inside of these pockets of price action, |
| 568 | 01:42:46,650 --> 01:42:58,410 | there's more than enough opportunities for you to take trades, just using the daily chart. Okay. But if you use the four hour chart, you'll be able to glean a |
| 569 | 01:42:58,410 --> 01:43:08,070 | better understanding of what it is that you are going to be hunting. But before we do that, let's strip the chart again. And we're going to take these fractal |
| 570 | 01:43:09,900 --> 01:43:22,110 | things off here. Okay, and what I'm gonna discuss now is what specifically is inside the candles that's useful to us, okay? And why consolidations breed |
| 571 | 01:43:22,290 --> 01:43:32,250 | opportunity. We have an area of consolidation right here. And I probably should take these rectangles off because |
| 572 | 01:43:38,790 --> 01:43:41,550 | there we go. And we have |
| 573 | 01:43:48,210 --> 01:44:08,550 | this consolidation right here. Okay, inside this, we're gonna make it blue. In this little area here, okay. Smart Money is accumulating. Now, how do I know |
| 574 | 01:44:08,550 --> 01:44:23,220 | it's accumulating? Well, because number one prices already moved off of an area where it caused a reaction, okay, inside this reaction, this price move higher. |
| 575 | 01:44:23,250 --> 01:44:36,420 | Okay, we're talking about a daily chart moving for days to the tune of about 465 pips. Okay. retail traders can't do that. So institutional funds and |
| 576 | 01:44:36,450 --> 01:44:45,240 | institutional traders will smart money will this is the elephant putting its foot in the water, okay. Then we go on to a consolidation. It's pausing in here, |
| 577 | 01:44:45,300 --> 01:44:51,930 | traders chase it thinking, Okay, what's been going up? I'm gonna keep buying it and they get pounded here to get pounded here, get pounded here. And at this |
| 578 | 01:44:51,930 --> 01:44:58,470 | point, they say, well, it's probably not going to keep going up. So I'm gonna be a seller and what they do they celebrate Yeah. Okay. Are they so you know, |
| 579 | 01:44:58,500 --> 01:45:07,890 | whatever pattern they think is is beneficial to them and ended up getting caught on the other side of the market again. We as traders, okay, here's what I want, |
| 580 | 01:45:07,890 --> 01:45:19,200 | we're gonna take a huge step right now. Okay? You need institutional sponsorship in your trades. Institutional sponsorship is when you start seeing things like |
| 581 | 01:45:19,200 --> 01:45:30,810 | this is market moves up, move into consolidation. This is where appearing of orders is taking place. Okay? institutional trading is building up positions, |
| 582 | 01:45:31,140 --> 01:45:44,430 | all in these areas here. Okay. And what you're looking for is where areas of where the market has moved with a great level of conviction, okay. If they can |
| 583 | 01:45:44,430 --> 01:45:52,800 | move the market almost 500 pips here and it starts pausing, chances are, it's probably gonna be another leg up. And what I mean by that, well, if you take |
| 584 | 01:45:52,800 --> 01:46:07,590 | this low to the high in here, if you see that range here, it's probably going to look to make a move equal to that same thing. Okay, and here's a low we're going |
| 585 | 01:46:07,590 --> 01:46:15,510 | to use basically use this because usually the same this year, and here's basically the same price. As you take this out in time, you can see the market |
| 586 | 01:46:15,510 --> 01:46:23,880 | did move, in fact, to that same price level. Again, it's just like a measured move, taken the first swing and then consolidation and expected another move |
| 587 | 01:46:23,880 --> 01:46:39,180 | higher. What I want to draw your attention to is, again, on the daily chart, how I like to view the market. Is it see this candle here? Okay, if we look at that, |
| 588 | 01:46:41,700 --> 01:46:45,420 | this candle right here, here, |
| 589 | 01:46:53,340 --> 01:47:09,210 | body of that candle. Okay. Is to me the most useful portion of it. Okay? When price rallied up, okay, and consolidated moves out of it, and came right back |
| 590 | 01:47:09,210 --> 01:47:21,120 | down into it, but was unable to break this. Whoa, we are in a consolidation. Okay. In this area, in here, okay, something's going on. institutionally |
| 591 | 01:47:21,120 --> 01:47:33,330 | speaking. I don't know exactly what it is. But as I know that there's something that traders on a large institutional basis, what this price, for whatever |
| 592 | 01:47:33,330 --> 01:47:42,720 | reason, they think there's value to it, okay. And what we're going to do is we're going to be looking at this whole area here, and I really should be using |
| 593 | 01:47:42,720 --> 01:47:57,900 | the high the candle, not just the body, but this whole area here is important. Because this is going to be an institutional order block. Okay. When price |
| 594 | 01:47:57,900 --> 01:48:05,670 | rallied out of that, and it came back one more time. Okay, they did, they dipped below this area here to clear out any kind of stops, that would be resting |
| 595 | 01:48:05,670 --> 01:48:12,750 | there. Okay, and it's a stop run. One of the most important things you can have in your notes are is if the price can come back to a key level support |
| 596 | 01:48:12,750 --> 01:48:21,000 | resistance, sweep through it one more time. Okay, and then fail to keep going. That's generally a sign that was a stop rate. And they're getting ready to do a |
| 597 | 01:48:21,000 --> 01:48:29,580 | major repricing going the opposite direction. In other words, contrary to direction, the stop was around somewhere, they drove it lower here, engineered |
| 598 | 01:48:29,580 --> 01:48:41,370 | it lower to send it higher. Okay. Why did they do that? Because they want the orders that are in existence down here. Okay. So what I mean by that, well, we |
| 599 | 01:48:41,370 --> 01:48:48,330 | had one little or blocking here between this candles high in this candles low, okay, when price rallied out, they couldn't get all their trade on. So what do |
| 600 | 01:48:48,330 --> 01:48:58,410 | they do they stop their buying, okay, and when they're not buying price will be permitted to trade lower, and then they'll support the market again, because why |
| 601 | 01:48:58,650 --> 01:49:06,540 | they're buying comes back into the marketplace in here. Okay, and they're buying it up. Again, that's going to control this decline and keep it from going back |
| 602 | 01:49:06,540 --> 01:49:13,770 | into this area here because they already have established positions back here. They don't want those violated. They don't want to see a net loss in there. So |
| 603 | 01:49:13,770 --> 01:49:21,990 | they're going to add more positions in here, supporting the market. Again, don't think like a retail trader, think like the banks, the institutional guys, they |
| 604 | 01:49:21,990 --> 01:49:28,710 | want to keep this thing they have a vested interest in keeping this market up. So if they wanted to move higher, they're gonna be buying it at a level where |
| 605 | 01:49:28,710 --> 01:49:43,290 | they consider it valuable, okay, or a viewing perspective on the marketplace. Edison has a worth of some sort, or undervalued if you will. Now as price moved |
| 606 | 01:49:43,320 --> 01:49:51,300 | out of this area here, again, this is that consolidation area we just had blocked off. Its price moves out of that area. Here we have market structure |
| 607 | 01:49:51,300 --> 01:50:04,230 | shift here again to bullishness to this high was taken out here. So let's draw that out. Okay, we are bullish market structure here, price rallies up again and |
| 608 | 01:50:04,230 --> 01:50:14,550 | then we have this decline. Okay. Now remember earlier I was discussing this Yes, it was three days where it was bears, I'm not ignoring that. Okay. The reason |
| 609 | 01:50:14,550 --> 01:50:24,570 | why I was going to come back to this example here because this is exactly what I use to get in these types of trades. If you look at this area of where the |
| 610 | 01:50:24,570 --> 01:50:35,010 | institutional order block was, okay, again, what how am I defining that, because we went into a consolidation, we rallied up, okay. And you want to see a |
| 611 | 01:50:35,010 --> 01:50:42,510 | conviction, a very strong conviction in the marketplace. And when you see something like this where it moves, several 100 pips, retail traders can't do |
| 612 | 01:50:42,510 --> 01:50:49,680 | that. So that's the elephant putting his foot in the water. And when price comes back down, okay, it gets back in the same area, we can reasonably expect to see |
| 613 | 01:50:49,680 --> 01:50:57,480 | to do what we expect it to rally. And when it rallies up and breaks these highs, we know that they are really putting an effort to keep this thing going moving |
| 614 | 01:50:57,480 --> 01:51:08,430 | higher. Now watch, we're gonna take a huge leap forward. Okay. This area here, because we use this first candle, it's the bearish candle. Okay, prior to the |
| 615 | 01:51:08,430 --> 01:51:20,730 | first rally. If we took this down to a lower timeframe, what do you think this is going to be? It's going to be a market structure or a market flow or order |
| 616 | 01:51:20,730 --> 01:51:32,400 | flow reference point where if it breaks to the higher side, we would expect to see what bullish prices, okay. But also it's during down candles, okay, or down |
| 617 | 01:51:32,400 --> 01:51:35,640 | moves is when the Smart Money accumulates positions. |
| 618 | 01:51:37,410 --> 01:51:49,410 | Let me say that one more time, because it went right over your head, I'm sure. Smart Money or professional traders do their buying one down moves. They do not |
| 619 | 01:51:49,530 --> 01:52:04,560 | chase price. They buy it when it's going down. Okay. When the market strong harms or stroke. Smart Money traders want to sell they sell when the markets |
| 620 | 01:52:04,560 --> 01:52:13,440 | rallying up, they don't sell it when it's dropping down. Okay, so have that in your little notebook, you want to be doing the same thing, which is one of the |
| 621 | 01:52:13,440 --> 01:52:23,190 | strongest components that makes up my trading because I'm a buyer when the markets moving lower. If you were watching this series of two days here, on an |
| 622 | 01:52:23,190 --> 01:52:29,670 | intraday basis, this probably looked like this was like a bat out of hell. Okay, screaming lower and it's probably going to keep on trading lower and lower and |
| 623 | 01:52:29,670 --> 01:52:42,000 | lower. You have to understand on this higher timeframe daily chart what was taking place. See this whole area here we blocked out we have two areas of where |
| 624 | 01:52:42,030 --> 01:52:53,760 | they have created two large institutional order blocks. I'm going to show you the second one that took place. See the rally that took off here. The bearish |
| 625 | 01:52:53,760 --> 01:53:04,260 | candle right before it taken off, is where you would have your expectancy of market structure shifting on The Voice I've written here. Okay, now as price |
| 626 | 01:53:04,260 --> 01:53:15,960 | rallies off this low here, okay. And again, I think this is a consolidation in here. So with this consolidation, there's opportunity being bred okay. And as |
| 627 | 01:53:15,960 --> 01:53:28,080 | the market moves higher, okay, it moves up in a rally and again you can day trade in these moves following against as a daily chart. So, moving within this |
| 628 | 01:53:28,110 --> 01:53:42,420 | price swing, we can reasonably expect you intraday trading opportunities, which is beyond the scope of this teaching again, but as price moves up, it makes us |
| 629 | 01:53:42,420 --> 01:53:57,630 | price swing here starts to retrace back in we have to order block areas that may be utilized as retracement opportunities. Okay, you have this one here with this |
| 630 | 01:53:58,590 --> 01:54:08,880 | candle here, which is the first down candle prior to the rally up in here. Okay, so above this high here would be the indication of a market structure shift on a |
| 631 | 01:54:08,880 --> 01:54:18,180 | lower timeframe. So when it breaks above that, if it comes back down to that same point of origin, this will be a likely candidate for a buy. Now what I want |
| 632 | 01:54:18,180 --> 01:54:29,880 | to draw your attention to here is the fact that we didn't get lower than these lows here really doesn't negate the validity of this potential area. It just |
| 633 | 01:54:29,880 --> 01:54:39,900 | means that they had enough of their orders established in this area here on this front and prior to this candle, making this here. Now what's this down move |
| 634 | 01:54:39,900 --> 01:54:49,770 | here? All these candles moving up, breaking the swing high here. Okay, this is the first down candle, the high above this candle here. When it broke here, |
| 635 | 01:54:49,800 --> 01:54:58,740 | market structure on the lower timeframes was bullish. Okay. So when we see that price comes right back down, gets into the same order block here now went a |
| 636 | 01:54:58,740 --> 01:55:10,440 | little bit lower again. But if we extend this in time, I'm going to illustrate what it is specifically that's going on at an institutional level that you need |
| 637 | 01:55:10,440 --> 01:55:24,000 | to be aware of to help you with your trading. And I'm going to take these lines off because they no longer are serving on purpose. Okay, so price comes down |
| 638 | 01:55:24,030 --> 01:55:35,700 | again, remember these these days here we're talking about earlier, if you as price ran up, here, we were in that bullish environment where the averages were |
| 639 | 01:55:35,700 --> 01:55:45,990 | indicating that we're likely to see upward pressure. When price came down like this, we can sit back and wait for price to enter back into an area of potential |
| 640 | 01:55:47,340 --> 01:55:58,890 | institutional order. So when we have price moving back into that, this is where we start understanding the mechanics behind the ICT optimal trade entry pattern. |
| 641 | 01:55:59,670 --> 01:56:15,000 | And let's take a look at that now. We have the swing here from this low, up to this range high here. Okay, so we have the low here and the high here, price |
| 642 | 01:56:15,000 --> 01:56:25,410 | comes down and slams right into that 70.5 level or sweet spot like I like to call it, it means you could be buying anywhere around that 130 big figure not |
| 643 | 01:56:25,440 --> 01:56:35,220 | factoring in the spread, obviously about three pips is the best is a safe bet. In this case, 130 oh six or 130 oh five is a good number that you try to get |
| 644 | 01:56:35,220 --> 01:56:37,680 | along in the |
| 645 | 01:56:40,110 --> 01:56:51,690 | below prior to that this swing low here would be a possible scenario to had you were expecting this candle here. If it dipped down lower, we could have caught |
| 646 | 01:56:51,690 --> 01:56:59,910 | 260 2% there. Okay, so I get a lot of questions as to why I move my fib to certain swings and such. And now you're understanding really the mechanics |
| 647 | 01:56:59,910 --> 01:57:12,930 | behind it all. So let's look at the optimal trade entry a little bit closer and understand some, some central tenants to it and what's specifically, that |
| 648 | 01:57:12,930 --> 01:57:27,510 | pattern really capitalizes on when we have a market take out a swing high like this. Okay, we have institutional sponsorship that takes the market above. Okay, |
| 649 | 01:57:27,510 --> 01:57:39,870 | and when it returns back into an area of previous consolidation, we expect that to reposition or assume more Long's. Okay. So I was there paring orders in here, |
| 650 | 01:57:40,050 --> 01:57:48,960 | they're allowing the market participants, okay to see this quick drop down. Okay. And that's one of the things I find kind of interesting when, when the |
| 651 | 01:57:48,960 --> 01:57:59,550 | markets are predisposed to go higher. They had these really one or two quick down dynamic days, okay, and kind of gets you all flustered and thinking, you |
| 652 | 01:57:59,550 --> 01:58:07,800 | know, hey, look, this mark is probably going to go lower in it. If you're really sensitive to the lower timeframes, like, you know, one 515 minutes, or even less |
| 653 | 01:58:07,800 --> 01:58:20,100 | than hourly in any capacity, it's very easy to swing your daily bias based on that. And if you learn to start looking at these daily and four hour charts, it |
| 654 | 01:58:20,100 --> 01:58:30,960 | helps you hold on to a longer term perspective. And you are less likely to be lulled into swinging back and forth on a daily basis, your daily basis, being |
| 655 | 01:58:30,960 --> 01:58:40,500 | bullish one day, embarrass the next, you can see really when when these moves, really take off a deer several days that they move, okay, they have a retrace |
| 656 | 01:58:40,500 --> 01:58:50,850 | and they are several days where it moves, then you retrace, then there's really dynamic several days on the upside, once it really starts to move out. When you |
| 657 | 01:58:50,850 --> 01:59:01,710 | find that it's fulfilled its order block, again, you'll see that there's many times very little time for you to catch the the entry point. So you got to know |
| 658 | 01:59:01,710 --> 01:59:11,580 | these things in advance. And that's why reacting to a price is not really the best case scenario. But as price moved down into this range here, okay, you can |
| 659 | 01:59:11,580 --> 01:59:24,030 | actually see in this smaller consolidation, guy, see this right here. So area over here, let's use this rectangle to highlight that. And what we'll do is |
| 660 | 01:59:24,030 --> 01:59:37,680 | we'll actually go down into a smaller timeframe for our chart, and we'll study that little consolidation as well. So we're going to assume for a moment that |
| 661 | 01:59:37,680 --> 01:59:50,400 | you were not privy to know in this order block or institutional or area here, okay, and as we moved into a consolidation in here, okay, what we'll do is is |
| 662 | 01:59:50,400 --> 02:00:04,890 | we're going to drop down into a four hour. Okay, and you're going to see that same underlying pattern. We have a swing high in here, which is broken. Okay. |
| 663 | 02:00:05,700 --> 02:00:18,450 | I'm going to recap the pattern what you're looking for this is how Institute institutional trading can be mimicked. Okay, you have an area of potential |
| 664 | 02:00:18,450 --> 02:00:28,590 | support, which we've already identified on the daily chart. Market ran up to swing high came back and retrace. Now you can trade this with a pure |
| 665 | 02:00:28,590 --> 02:00:36,360 | understanding that's a support level. And this could be your retracement here. Okay. Now, again, that's a four hour basis, you could you could do that. And the |
| 666 | 02:00:36,360 --> 02:00:51,570 | reason why is because you're using the same underlying premise that prior to this move up the first down candle prior to it, which is here, if price returns |
| 667 | 02:00:51,570 --> 02:01:07,170 | back to that range, as it does here. Okay, and I'll drop a fib on as you can see the mechanics behind it. Okay, you can see the 79 cent tracing level stops it |
| 668 | 02:01:07,170 --> 02:01:10,590 | dead to rights boom, right there. Okay, and then price rallies up. |
| 669 | 02:01:11,310 --> 02:01:21,780 | In here, when we have this break here on a four hour, this is much more dynamic, when you see this take place. Okay, put this in your notepad. If you see the |
| 670 | 02:01:21,780 --> 02:01:31,410 | overall pattern on a four hour chart break like this, and your overall bullish still, on the higher timeframe daily, man get ready because it's going to have a |
| 671 | 02:01:31,410 --> 02:01:41,100 | dynamic price surge higher. Once we have a return back to the point of origin, the point of origin is what we discussed right here. And then when price moved |
| 672 | 02:01:41,100 --> 02:01:58,800 | up here, again, the first candle that's down prior to the rally up. Once price, rallies up, away in breaks to the swing high, like we just discussed right here. |
| 673 | 02:02:00,450 --> 02:02:09,390 | We have this rally up, we wait. And when price returns back to this point of origin right in here, okay? This is where they dip back into that order block. |
| 674 | 02:02:09,540 --> 02:02:19,050 | Okay, so they had their orders here, they came back, they want to get an average fill around here that 130 20, maybe 130 30 level, if you look over here, you can |
| 675 | 02:02:19,050 --> 02:02:30,210 | see that's the case, price comes down dips back into that order block again, okay, they spend about a day or so in there, acquiring more long positions. |
| 676 | 02:02:30,660 --> 02:02:40,200 | Okay, now what we'll do is is we're going to use this swing low here, up to the high here, okay, using that same range. And you can see the 79 cent tracing |
| 677 | 02:02:40,200 --> 02:02:50,340 | level right in here is containing the body to the candle. And there's only been two little wicks, okay, we're talking about maybe three pips that have violated |
| 678 | 02:02:50,340 --> 02:03:01,710 | the silent treatment level. So if you're using just a 10 PIP stop below this low here, and I don't want to get into stop loss plate placement yet, but I just |
| 679 | 02:03:01,710 --> 02:03:08,520 | want to give you a little hint as to what's going on if you were, you're buying in here the seven likes on tracing level and modes, the fair and say you're |
| 680 | 02:03:08,520 --> 02:03:23,160 | buying at the 70 and 70.5. At the low, here's 37 pips, and your stop to be 10 pips below that would be at 130 oh four, okay, and that means you'd be risking, |
| 681 | 02:03:23,430 --> 02:03:32,700 | if you're trading just on the four hour basis, you'd have to have a stop of 47 pips. And that's still very close to what my average standard 30 PIP stop loss |
| 682 | 02:03:32,700 --> 02:03:41,550 | is. So you can see how by understanding this, we've already trimmed down a huge amount of the risk on a four hour time frame, not to mention what we could do, |
| 683 | 02:03:41,550 --> 02:03:50,310 | we drop down to an hourly basis and or 15 minute basis, which we'll do in a few moments, but just stuff for the moment. Let's just look at this again, in |
| 684 | 02:03:50,310 --> 02:04:01,740 | greater detail. price moves down into this order block priced based on this candle here, you see it does not really get down here and stack very |
| 685 | 02:04:01,740 --> 02:04:11,550 | aggressively. This holds the sunlight saturation level as we just noted earlier. So once price does this and accumulates whatever it is that institutional |
| 686 | 02:04:11,850 --> 02:04:19,290 | traders are trying to acquire. I don't have the insight as to what it is specifically, they're trying to acquire how much of the position they're |
| 687 | 02:04:19,290 --> 02:04:27,720 | assuming I just understand the footprint that they leave in the marketplace and when that takes place, okay, we know that it's most likely going to have an |
| 688 | 02:04:27,750 --> 02:04:35,520 | aggressive move up, okay, because we had the first run up here and then a four hour market structure break here. And then you wait for to come back. Where's it |
| 689 | 02:04:35,520 --> 02:04:44,490 | going to come back to this is your point of origin right here. Okay. And it could very well easily come back into this one as well and create more or less |
| 690 | 02:04:44,490 --> 02:04:53,550 | like a double bottom. It really does that. And the reason why is because once it goes down, it doesn't want to usually come down much lower than that because |
| 691 | 02:04:53,550 --> 02:05:04,740 | other institutional traders may get on board and drive much lower than that and and throw off their their targeted average entry price. So as they moved up here |
| 692 | 02:05:04,740 --> 02:05:12,900 | you can see you can literally can see it as a buying opportunity here, they acquire Okay, it starts to move too much. So to settle down, relax, let price |
| 693 | 02:05:12,900 --> 02:05:20,790 | come back down again, dips back into this little area here. Okay, they buy more of it and it rallies up. You can see there's much more aggressive buying |
| 694 | 02:05:20,790 --> 02:05:30,270 | pressure on this candle here because it took three four hour candles to make this range here. And then one four hour basis. Boom, they took it off here. Then |
| 695 | 02:05:30,270 --> 02:05:39,480 | come back retraced, retrace retrace, where's the retracement to the point of origin right here. And then all of a sudden their remaining block of trades that |
| 696 | 02:05:39,480 --> 02:05:49,860 | they want to assume for a long position was acquired here and then they're off to the races. Now just trading back to an old high like this. Let's note that |
| 697 | 02:05:50,280 --> 02:06:04,590 | and you can see okay, looking for upward targets as like that we're going to use this one first as a as an objective as an example rs 270 pips late your feet. |
| 698 | 02:06:05,730 --> 02:06:10,950 | And this one here. Again, we're going to assume you traded at |
| 699 | 02:06:13,530 --> 02:06:24,030 | around the around the sweet spot again, there's 240 pips. So you really would you be willing to risk roughly 50 pips just trading on a four hour basis, risk |
| 700 | 02:06:24,030 --> 02:06:36,630 | 50 pips to make 240 pips just sounds like a good reward the risk. I'll leave that up for you to decide. But as price moved up, you can see it easily, quite |
| 701 | 02:06:36,630 --> 02:06:49,320 | easily hit this objective, and it moved on beyond that as well. So with this example here, you can see how just simply waiting for these scenarios, the set |
| 702 | 02:06:49,320 --> 02:06:58,080 | up, you can trade really a good number of pairs if you're trading on a higher timeframe basis, I guess because, number one, think about how much time it takes |
| 703 | 02:06:58,080 --> 02:07:09,750 | to set these trades up, it takes a good bit of time. Also, it gives you a an area where to anticipate and hunt these specific patterns. Okay, so it allows |
| 704 | 02:07:09,750 --> 02:07:18,810 | you to the freedom to sit on your hands and wait and not feel rushed to get in there and just take a trade simply because it's something to do. Now what we're |
| 705 | 02:07:18,810 --> 02:07:32,190 | gonna do is we're going to actually drill in tighter. Okay, and what I'm doing is I'm actually moving into this little pocket of price action. Okay, so this |
| 706 | 02:07:32,190 --> 02:07:49,170 | fractal here, we're going to look at in regards to a 15 minute x go down to one hour basis and see what that does first. Okay, now you can see price rallies up |
| 707 | 02:07:49,170 --> 02:08:03,060 | out of here. And right in here, you can actually see how we're actually starting to fine tune. Here's the bears candle, the first one right before you go to the |
| 708 | 02:08:03,450 --> 02:08:16,710 | move up. So if you bracket that out. Okay, you can see that's the the order block in here. Now, again, it's anywhere in here specifically. Okay. But what I |
| 709 | 02:08:16,710 --> 02:08:29,460 | like to see is like a Fibonacci level and or pivot level in this area that suggest where price may be going. Also, I like round numbers. And in this case, |
| 710 | 02:08:29,460 --> 02:08:39,780 | the 130 40 level is really ideal. And you can see that's also roughly the same price point this swing high is now also around our what we talked about when we |
| 711 | 02:08:39,780 --> 02:08:50,550 | look at swing highs, we'd like to look at the three bar pattern. Okay, here's the here's the highest candle in this pattern, then the right candle to the |
| 712 | 02:08:50,550 --> 02:09:01,260 | right of it with the lower high. It's opening close and higher lows important to open high low and close on the high candle, or the highest most of the three bar |
| 713 | 02:09:01,260 --> 02:09:09,390 | pattern on the swing high pattern. And then this high here, the open high, low and close as well. So when we when we fact that those individual price levels, |
| 714 | 02:09:09,660 --> 02:09:17,910 | you can actually take that out and extend it across in terms of like horizontal lines, and really specifically wait for price to move down to those levels. On a |
| 715 | 02:09:17,940 --> 02:09:28,200 | one. I'm sorry, I want to five minute or 15 minute basis and really fine tune your entry in regards to what may be possible for trimming down to stop loss |
| 716 | 02:09:28,200 --> 02:09:36,000 | orders. So now what we're going to do is is going to take the same price level here, okay, and I'm going to look at |
| 717 | 02:09:41,520 --> 02:10:15,060 | this small little section in price or here and I make sure I'm not getting more than I want okay, right in here. What I'm looking for right there. Again, that's |
| 718 | 02:10:15,090 --> 02:10:29,160 | January 9, we're going to drop down to a 15 minute timeframe. Okay, and now watch. We have price action, okay in here moving up on a very short term basis, |
| 719 | 02:10:29,670 --> 02:10:47,460 | okay, and comes back down to this candle here that your point of origin, where the rally ensues are going here. move that out in time. Right in here, price |
| 720 | 02:10:47,460 --> 02:11:06,030 | comes back down into it. And then runza Okay, same thing here. Okay, we have this rally here. Here's the candle prior to the rally up, that's bearish. And if |
| 721 | 02:11:06,030 --> 02:11:22,830 | you take that area here, you can see it enters that order block again, right here. And again, if you run your fibs on that, okay, you can get the |
| 722 | 02:11:22,830 --> 02:11:33,150 | opportunities where you can take your intraday trades, and get in sync with the higher timeframe trades as well. But assuming that you took that as your entry |
| 723 | 02:11:33,150 --> 02:11:47,730 | point, based on the hard timeframe trade, okay, you could trade this here. Okay, we get in at 130. Let's see what is that price is 130 45. Let's say 130 40, |
| 724 | 02:11:47,730 --> 02:12:00,780 | sevens fair. And you're using a 10 PIP stop below here. Actually, crunches up just a little bit, so you can see where the stop loss would be. And you can trim |
| 725 | 02:12:00,780 --> 02:12:12,780 | back that risk. Again, assuming you're getting long on a limit at 130 47. And we're going to use this low here as your primary reference point for stock |
| 726 | 02:12:12,780 --> 02:12:26,130 | location. If you go down 10 pips below that your or your stop loss order will be at 130 27. Okay, and what we'll do is we're gonna put that in here 130 27, and |
| 727 | 02:12:27,630 --> 02:12:39,360 | price comes down, but never comes close to it. Okay, I mean, scrunch it down. So you can get yourself positioned here. Okay, and again, this is a 15 minute |
| 728 | 02:12:39,360 --> 02:12:50,430 | charts here, waiting for these positions to unwind. This year, remember, we're looking at a four hour and daily timeframe setup, so you're not trading on a 15 |
| 729 | 02:12:50,430 --> 02:12:58,350 | minute basis. So when you start seeing these wiggles lower, where's your stop loss down here, so you just simply let it do its thing and price rallies on up |
| 730 | 02:12:58,980 --> 02:13:12,210 | and you get excited and everything's, you know, as you'd hoped it would be great you can see the point of entry back here, and then the ultimate unwinding of |
| 731 | 02:13:12,210 --> 02:13:29,730 | that position here let's take a look at another example. And we see this price rally up off of a daily chart key support level down here. And I want to draw |
| 732 | 02:13:29,730 --> 02:13:43,890 | your attention to in here is obviously this quick rally up and then a bull flag formation here. We have this level in here if you were following any of my |
| 733 | 02:13:43,980 --> 02:13:58,470 | market reviews, we talked about this level being a possible area of support and prior to the move out, okay, we had a couple different areas that could have |
| 734 | 02:13:59,430 --> 02:14:16,860 | meant to probable areas of support and institutional dealing ranges where where blocks may reside for the institutional level trading and that comes in the form |
| 735 | 02:14:17,040 --> 02:14:21,180 | here we have this candle here prior to move up |
| 736 | 02:14:30,210 --> 02:14:49,110 | okay, is it no where's this move higher and this candle here okay. And you see that's the the first bearish candle prior to the move higher first bearish |
| 737 | 02:14:49,110 --> 02:15:02,100 | candle prior to move higher. And we see also you know, this likely support and resistance that will based on this me term I on the daily chart, we did get an |
| 738 | 02:15:02,100 --> 02:15:16,830 | opportunity to see a bounce here. Okay, and that's seen with this move here. This was the bearish candle prior to its rally up. So if you take the range in |
| 739 | 02:15:16,830 --> 02:15:30,630 | here, you can see how this retracement would have been a very decent handsome opportunity to to get along on. Price came back down to that same institutional |
| 740 | 02:15:30,810 --> 02:15:42,330 | order block in here and rallied up higher and eventually started to break down. Okay. And let's take a look at what's transpired here, we lost this level here |
| 741 | 02:15:42,330 --> 02:15:52,590 | we tried it started trading lower. Okay, and this would be the next area to expect some support. Okay, and you can see price trades right down into that |
| 742 | 02:15:52,710 --> 02:16:02,820 | right there. Okay, now what I'm gonna do is I'm just going to take a horizontal level, draw it across the chart like that. Okay, and when you see this, this is |
| 743 | 02:16:02,820 --> 02:16:17,910 | an area, where do you reasonably expect prices to bounce. If you notice also, the low here to this high, this is your your price swing, you see that? Okay, |
| 744 | 02:16:17,910 --> 02:16:28,410 | we're retracing inside that price swing. So if you take the range, and highlight that with your Fibonacci tool, you can see the sweet spot lays directly right on |
| 745 | 02:16:28,410 --> 02:16:46,890 | top of that same point of origin right in here. Price does not move much lower than that, again, this is a daily chart and price rallies on price rallies on so |
| 746 | 02:16:46,890 --> 02:16:56,400 | you can see that there's a definite advantage and knowing where the institutional level trading is going to come in to the marketplace. And by |
| 747 | 02:16:56,400 --> 02:17:04,140 | having an understanding of where that's going to take place, you can also expect it on a time basis with the kill zones. Okay, so we have an understanding of |
| 748 | 02:17:04,140 --> 02:17:15,720 | support resistance, we have an understanding of the time of day, we understand where the big moves should ensue, and where to more or less, wait for them to |
| 749 | 02:17:16,590 --> 02:17:38,970 | take place in form based on a higher timeframe charts. If we look at the market on a shorter timeframe, okay, and we're going to apply our tools we learned for |
| 750 | 02:17:38,970 --> 02:17:39,300 | the |
| 751 | 02:17:48,869 --> 02:17:53,459 | directional bias. Okay, and |
| 752 | 02:18:01,020 --> 02:18:17,970 | 18 period. Okay, and what we're gonna do is we're gonna look at a time frame when price was moving up in here, okay, and I'm going to highlight that with a |
| 753 | 02:18:17,970 --> 02:18:31,470 | little rectangle in here. And what that's going to help me do is show you how to use this for trade entry. And we're going to do is we're going to break down to |
| 754 | 02:18:31,500 --> 02:18:44,160 | a 15 minute timeframe to do that. Okay, what I did was zoom down into a 15 minute timeframe, and I added the Asian range for each daily intraday action. |
| 755 | 02:18:46,200 --> 02:18:54,570 | And I'm going to draw your attention to here is, as market moves into, this is a Monday guys, it's very hard to see here, but this is a double line, delineating |
| 756 | 02:18:54,570 --> 02:19:08,640 | at Sunday. Okay, I'm just gonna scroll through. And here is a Monday and going into Tuesday. Here's Tuesday's trading here. Okay. Now, looking at this, you can |
| 757 | 02:19:08,640 --> 02:19:25,440 | see how price moved up here and created a range here. See this down candle prior to the move up? Okay, we had this rally up here. If you take your fib, you pull |
| 758 | 02:19:25,440 --> 02:19:28,740 | it from swing low here, up to this range high. |
| 759 | 02:19:33,750 --> 02:19:43,680 | Price comes down to the 62% retracement level. And this is nine GMT. This is the London open. Okay. So there's an opportunity where being long again, and now |
| 760 | 02:19:43,680 --> 02:19:52,590 | with the background being blue like this, again, what that's highlighting is a time period when on a daily basis. We have a nine period exponential moving |
| 761 | 02:19:52,590 --> 02:20:01,170 | average above the 18 period. So we have institutional momentum on the upward side of the market and the words we're looking for. Just by The framework is |
| 762 | 02:20:01,170 --> 02:20:09,780 | established as a bullish scenario. So we would be looking for opportunities to be a buyer here. And that's one example here using what we just discussed with |
| 763 | 02:20:10,050 --> 02:20:28,320 | point of origin here. And when price rallies up and trades back down into it, we see price move up into its high for the day, and then we have another right |
| 764 | 02:20:28,320 --> 02:20:50,310 | here. Okay, we have this range here, and trades down. We're going to use this is the first down, bearish candle prior to the move higher. So we're going to use |
| 765 | 02:20:50,310 --> 02:21:10,710 | that as its basis. Okay, get in here. And we have this candle here, prior to this move up, so we could use that one as well. What you're looking for is clear |
| 766 | 02:21:10,740 --> 02:21:22,620 | points of where price moves with conviction. Okay, where it's really clearly trying to move away, you have it here. Okay, and you have it here is against the |
| 767 | 02:21:22,620 --> 02:21:36,090 | 15 minute time frame. And then price makes its price swing and trades lower. This candle on the very low here is 1515 GMT. So that's like, like 15 minutes |
| 768 | 02:21:36,090 --> 02:21:54,840 | past the the kill zone that this was established for this training trading series. This here is 15 GMT. And this is 1445 GMT. So this is still capable |
| 769 | 02:21:55,140 --> 02:22:03,030 | trade setup for the New York open session light late for New York. But still, nonetheless, it's something you can take a trade on. |
| 770 | 02:22:09,600 --> 02:22:28,440 | Let's go out one. Here, we have just a market structure alone here, this is nice, we have a low, a lower low to have them in here, then a higher low here. |
| 771 | 02:22:28,440 --> 02:22:38,070 | So we have an intermediate term low just in market structure alone. So that's that's bullish by itself. Without anything else added to it. That's That's very |
| 772 | 02:22:38,070 --> 02:22:47,190 | good. And we have price rally up away here. This is our first bullish candle prior to the move up. |
| 773 | 02:22:57,810 --> 02:23:14,670 | Okay, you can see how arise up, this is your range. But your fib on that range. Right in here. This candle Here comes in at nine GMT. This candle here is 930 |
| 774 | 02:23:14,670 --> 02:23:19,320 | GMT, that's London open. Okay, we also have |
| 775 | 02:23:26,040 --> 02:23:36,150 | this rally here, and then it comes right back into here's the first bearish candle prior to the move up. So this is where the market structure would shift. |
| 776 | 02:23:36,900 --> 02:23:48,750 | Okay, and without having to draw a line, you can see we moved back into that range right here, here is the smaller reference point, here's where you would be |
| 777 | 02:23:48,750 --> 02:24:03,930 | buying. And again 10 PIP risk below here. Let's give you an idea what that will look like in terms of again, we're going to say we bought at the 70.5 level at |
| 778 | 02:24:04,020 --> 02:24:22,440 | 130 107. Here's the low and if we go down 10 pips below that your stock would be at 130 86. Okay, so approximately a 30 PIP stop well within the range of |
| 779 | 02:24:23,130 --> 02:24:32,670 | probable in trading back to an old high, you could take profits here, take profits here, or just look forward to continue moving on, on a higher basis. |
| 780 | 02:24:36,660 --> 02:24:50,520 | Drag see price moving up here. Now, just let's zoom in here. And I want you to see using the ideas that we just covered, okay, look at every time when the |
| 781 | 02:24:50,520 --> 02:25:02,070 | market moves up, breaks a swing high. Okay, then comes back down and comes right back into that previous point of origin or This is where the move starts and |
| 782 | 02:25:02,070 --> 02:25:10,530 | trades right back into it. This is what you pull your fib on. Okay, I get a lot of questions, you know, where, what am I looking for? Why do I put my fib? |
| 783 | 02:25:10,530 --> 02:25:17,400 | Where? Why would I use those those reference points like you do on your videos? Well, if you go back over all of the videos, you'll see me doing it, you'll see |
| 784 | 02:25:17,400 --> 02:25:31,440 | me doing this very thing. Okay, and here we go. We have price moving up here. Okay, this is a Monday's trading. We have the first bearish candle prior to the |
| 785 | 02:25:31,440 --> 02:25:50,130 | move going up. Okay, take your range. gentleman over here. Okay, when you see that here, this this candle forms at 630 GMT, at 630 GMT, that's about a half |
| 786 | 02:25:50,130 --> 02:26:08,430 | hour before the very, very beginning of what I like to see, in terms of the, the the meat of London starting, you can see how it comes right down to that sweet |
| 787 | 02:26:08,430 --> 02:26:20,220 | spot in here. Okay, and also note, shark, I probably should have said this, I'm jumping ahead of myself. When you're looking to the buyer, you want to be doing |
| 788 | 02:26:20,220 --> 02:26:29,010 | what we mentioned earlier in a previous video, using the Asian range high as your filters and what you want to be buying. Definitely anything below this |
| 789 | 02:26:29,550 --> 02:26:44,460 | level. Okay, this is the ideal position, entry point. Again, here we have the Asian range high. This is below the Asian range low sets even better. Okay. Here |
| 790 | 02:26:44,460 --> 02:26:57,900 | is the New York session. Bye. And again, here's the bearish candle prior to the move up, okay, and if you look over here, you can see we move right back into |
| 791 | 02:26:57,900 --> 02:27:11,340 | that point of origin. Okay, so they moved right back into that, that dealing range and order block. If you use the low in here, up to here, you can see how |
| 792 | 02:27:11,340 --> 02:27:21,870 | he went right down to 797 tracing level. And rather handsomely. Even if you used the low formed in London, you're still getting almost a sweet spot here. But |
| 793 | 02:27:21,870 --> 02:27:32,850 | certainly this 62% retracement level, and getting in sync with the daily trend, you can see how that's rather handsome in terms of a trade opportunity. Okay, |
| 794 | 02:27:32,910 --> 02:27:45,870 | and, again, we have this point here where we have a new york session low. Remember, we're looking at session highs and lows, not just the previous day's |
| 795 | 02:27:45,870 --> 02:27:56,760 | highs and lows. And here is your bearish candle prior to the rally out. So you're gonna see market structure shift on this candle. draw that out in time. |
| 796 | 02:28:00,210 --> 02:28:09,270 | Okay, because this is at the point of origin, where this rally took place. So the range that was created here, originated right here on this bearish candle. |
| 797 | 02:28:09,300 --> 02:28:18,210 | So when the market structure broke here, this is where the order block resides. Okay, within this candle, this is where the on the institutional order block |
| 798 | 02:28:18,210 --> 02:28:27,930 | resides. In case someone market meanders and trades lower it was a good back into that same order block. And then they acquire more the original position |
| 799 | 02:28:27,930 --> 02:28:38,280 | they were trying to acquire here that they couldn't get on because the market started to take off. And if you take that and you add that to your fifth Okay, |
| 800 | 02:28:38,280 --> 02:28:46,710 | you can see how here's the center and saturation level deviated just a little bit and we're going to give you actually how much it moved below it. Give you an |
| 801 | 02:28:46,710 --> 02:28:58,560 | idea how much and we're talking about six pips, I think that's livable guys, you guys can certainly tolerate that. If you were to use the lower low here, you |
| 802 | 02:28:58,560 --> 02:29:09,840 | still end up with the sweet spot. Okay, so you can see how using session lows and highs with a directional bias defined as we just covered in this video. It |
| 803 | 02:29:09,840 --> 02:29:16,980 | really helps you ferret out opportunities and certainly being a buyer down here below the Asian range high. Okay, think of the daily range. Remember, we were |
| 804 | 02:29:16,980 --> 02:29:27,030 | talking about the likelihood of big range days if we have the opening price in here, okay, it doesn't really work both sides of the opening price very much and |
| 805 | 02:29:27,030 --> 02:29:36,900 | certainly doesn't work do the lower end, making the low very much and onwards. What do I mean by that? There's not much range on daily bar from the opening to |
| 806 | 02:29:36,900 --> 02:29:52,650 | the low. Okay, and let's see what that does here. Okay, we're just gonna eyeball it. And we're talking about 27 pips. Okay 27 pips. So it worked lower 27 but |
| 807 | 02:29:52,650 --> 02:30:02,820 | moved off of the lows for the day, to the tune of 76 pips. So it's basically three to one almost. Okay? |
| 808 | 02:30:09,809 --> 02:30:27,089 | The reoccurring principle is simply looking for retracements in an uptrend okay so you're buying dips in an uptrend and if you look at here we go here is one |
| 809 | 02:30:27,089 --> 02:30:46,469 | where it was not able to get down into that price point in here but using just the optimal trade entry you can see how we got a sweet spot here and I'm sure if |
| 810 | 02:30:46,469 --> 02:30:57,389 | you pulled the pivots up which we're not going to do here because I'm trying to keep this video around three hours at maximum which is a lot by itself but |
| 811 | 02:30:58,319 --> 02:31:11,849 | nonetheless it's you know, certainly certainly a long video and here's you see opportunity in here where you could have even intraday you know, price when it's |
| 812 | 02:31:11,849 --> 02:31:23,429 | rallied up like this yours your first bearish candle went right down in that order block right here and then gave you a tradable rally. Okay, and let's look |
| 813 | 02:31:23,429 --> 02:31:34,559 | at that range. It's 44 pips, so that's certainly something you can get 20 pips 2530 pips I love. Okay, and let's drop out one more. |
| 814 | 02:31:40,890 --> 02:31:47,790 | Here's a nice double bottom where it comes right back down to this original order block prior to it rallying up. |
| 815 | 02:32:03,180 --> 02:32:24,720 | market moves into consolidation here and really don't have anything that's really discernible. She may be sitting on your hands in here. Here's one that |
| 816 | 02:32:24,720 --> 02:32:38,970 | was this was all right, you got this candle here, draw it out in time it moves right back into that same order block day moves higher. Again, all we're doing |
| 817 | 02:32:38,970 --> 02:32:50,250 | is focusing on the buying not anything else, just simply looking for buying opportunities. Okay, we have prior to the move up, we have this bearish candle |
| 818 | 02:32:50,250 --> 02:32:52,170 | here, draw that out in time. |
| 819 | 02:32:57,240 --> 02:33:13,680 | Okay, and poor fib on the range. Here's a seven nights at chase on level one here dva, just a little bit below it. And this is where you would have |
| 820 | 02:33:14,130 --> 02:33:22,980 | encountered a trade that would have been a losing trade. Okay, and it's fair for me to show you this because I don't want to just go through and appear to be |
| 821 | 02:33:22,980 --> 02:33:29,610 | just cherry picking, looking at opportunities where it worked out favorably every single time, I don't want to log into thinking this is going to be |
| 822 | 02:33:29,610 --> 02:33:33,570 | perfect, it's not going to give you any losses it certainly would have happened here. |
| 823 | 02:33:42,330 --> 02:33:49,230 | Here's one where it moves deeper below and runs the stops on the Asian range low before running higher. |
| 824 | 02:33:55,260 --> 02:34:12,210 | We have the same scenario here where the previous day's low which on this in this case is 14 GMT which is a session low New York session. Here's your low to |
| 825 | 02:34:12,210 --> 02:34:23,820 | high the range price drops down into the 60 to almost the sweet spot returning back to this dealing range and institutional level point of origin where |
| 826 | 02:34:23,820 --> 02:34:34,680 | everything when price drop lower, it allowed them to accumulate more of their long positions and then you sell the price move on up and profit released |
| 827 | 02:34:34,680 --> 02:34:47,640 | portion of the trade unfolded. They have another little opportunity in here where price moves up. First bearish candle in here draw it out in time. This is |
| 828 | 02:34:47,670 --> 02:35:02,940 | a return to the point of origin back into the order block here and price rallies up and this candle Here comes in at 1600 GMT. Nice little opportunity to be able |
| 829 | 02:35:02,940 --> 02:35:22,980 | to catch a scalp intraday. And I'm only tossing this in about 40 pips or so in terms of PIP range. I'm adding these these intraday setups to show you how you |
| 830 | 02:35:22,980 --> 02:35:35,460 | can use it to be a trader on an intraday basis or a scalper. But really, what you want to be focusing on is the ideal days of the week, which are Monday. I'm |
| 831 | 02:35:35,460 --> 02:35:46,860 | sorry, you have Monday, Tuesday and Wednesday, being the higher low of the week. And again, because we're looking at this area price action, we're going to look |
| 832 | 02:35:46,860 --> 02:35:58,350 | for, again, just the significant lows, the farm for the week one, let's go back and look at the beginning portion of that. And just for clarity, because I want |
| 833 | 02:35:58,350 --> 02:36:18,840 | to be make sure that this is easy to see. I'm just going to change the color to a little lightly. There you go. It's a little bit easier to see. Here's Monday's |
| 834 | 02:36:18,840 --> 02:36:28,440 | trading. And that's the low the week during the time when we're looking for buying opportunities only. Okay, so on Monday this week, we have the Monday |
| 835 | 02:36:28,440 --> 02:36:39,420 | making the low. On this week here, the low the week is on Monday as well. Nice opportunity to be buying on Tuesday, even gives you an opportunity on Thursday, |
| 836 | 02:36:39,720 --> 02:36:55,380 | which doesn't fit the model but still, everything working towards making a higher close on Friday is the general idea. We have a shift in market tone in |
| 837 | 02:36:55,380 --> 02:37:05,910 | here where went lower and retraced much deeper. But there was certainly buying opportunities on Monday, Tuesday, and even on Wednesday and still catching some |
| 838 | 02:37:06,120 --> 02:37:18,180 | opportunities to be a buyer. The loan this week comes in on Monday, very nice opportunity a buyer here as well. And you actually see this same result of years |
| 839 | 02:37:18,180 --> 02:37:30,960 | of down candle prior to move up and it retraces back into that order block and as your optimal trade entry moving higher. And Tuesday opportunity a buyer |
| 840 | 02:37:30,960 --> 02:37:42,270 | Wednesday nice opportunity a buyer Okay, those are those one one shot one kill type scenarios that you would be looking for, to not trade a whole lot but catch |
| 841 | 02:37:42,270 --> 02:37:51,510 | very handsome pips and not not have to do a whole lot of work really. That low actually forms here on Thursday for this particular week. And again, I'm using |
| 842 | 02:37:51,510 --> 02:38:03,300 | the double lines here delineating the marker of Sunday to Sunday. So actually, between those two is the intra week price action. Nice buying up changing here |
| 843 | 02:38:03,300 --> 02:38:15,900 | on a Monday this week. Nice one on Tuesday. Okay, does retrace, trades lower than Monday's low. But again, still opportunities to be a buyer moving up rather |
| 844 | 02:38:15,900 --> 02:38:30,870 | handsomely. And I move into an area where we no longer have the daily bias enforce where now we would be expecting to see lower prices come into effect. |
| 845 | 02:38:30,870 --> 02:38:39,270 | And that's what you see here. And really, if you just reverse the scenario and look at everything, like we just did on the buy side, reversing it for the |
| 846 | 02:38:39,270 --> 02:38:47,310 | downside, it's much in the same capacity, the same thing just reversed. Okay. And let's take a look at |
| 847 | 02:38:50,280 --> 02:39:01,710 | the breakdown of what you're looking for with the support resistance notion and the time of day. And the optimal trade entry and what specifically sets up your |
| 848 | 02:39:01,710 --> 02:39:05,100 | trade team to as high probability. |
| 849 | 02:39:10,410 --> 02:39:21,060 | Okay, the ICT optimal trade entry pattern. The premise really builds upon the understanding of support resistance, and we're going to use this example here to |
| 850 | 02:39:21,060 --> 02:39:35,190 | illustrate the example of an optimal trade entry that's used for a buy entry. And assuming that the support level has been arrived at and we have this support |
| 851 | 02:39:35,190 --> 02:39:50,070 | level, which is ideally a higher level daily, four hour or one hour timeframe support line. This high here, okay, this swing high, breaking this previous high |
| 852 | 02:39:50,460 --> 02:40:01,650 | is good. That's what you want to see. Okay. And then when you have price, break it again here you have another continent Manasa conviction. By the traders that |
| 853 | 02:40:01,650 --> 02:40:14,880 | are in control of price, which are smart money, they are indicating to us that they are wanting to see this market, not trade lower. Okay. So if it's not going |
| 854 | 02:40:14,880 --> 02:40:26,700 | to go lower, chances are it's probably going to go up and go up sharply. Now, if we see the star here, that's delineating a break in market structure, okay, on |
| 855 | 02:40:26,700 --> 02:40:36,240 | both points, the previous little short term high that we just showed, and now when the price ran up aggressively through that, what we would be waiting for |
| 856 | 02:40:36,240 --> 02:40:49,680 | his price to return back to the point of origin. That scene here, where price comes right back down into the first bearish candle prior to the rally, gave |
| 857 | 02:40:49,680 --> 02:41:00,690 | breaking market structure here. So we now have a range from here to here. Okay. So we're looking for price really to stay above support, not necessarily trading |
| 858 | 02:41:00,690 --> 02:41:10,680 | back down to that same price level. This is the swing that you should be identifying with your eye. This is what you train your eye to see. This |
| 859 | 02:41:10,680 --> 02:41:23,880 | particular price swing is what's necessary for you to pull your fib on. By doing that, and again, noting where the market structure has shifted. When price moves |
| 860 | 02:41:23,880 --> 02:41:35,880 | back down into this area here, it's between the 62 and 79 cent treatment level. The 17.5 level is what I deem the sweet spot. That's generally what I try to aim |
| 861 | 02:41:35,880 --> 02:41:45,660 | at for my entry point, I may add the PIP spread from that point, or I'll use the 62% retracement level. And depending upon the type of PIP range between the two, |
| 862 | 02:41:45,720 --> 02:41:55,950 | if it's not a whole lot, you know, I'll just simply use the 62 just to make sure I get the trade as long as it doesn't deviate my overall price parameters in |
| 863 | 02:41:55,950 --> 02:42:09,270 | terms of allowing my stop loss order to be within my maximum risk per trade. And obviously, you can see the results of taking this type of pattern with the |
| 864 | 02:42:09,270 --> 02:42:17,790 | understanding everything that we've talked about in this video series up to this point in that little gray. I mean sorry, in a little green box. Ideally, that |
| 865 | 02:42:17,790 --> 02:42:29,340 | should be a kill zone, be it the London open or the New York session open. Okay? Those are the ideal trading scenarios for you to be finding trading |
| 866 | 02:42:29,340 --> 02:42:37,440 | opportunities to get long in and again with the assumption that the nine day exponential moving average is above the 18 day and when you have that and also |
| 867 | 02:42:38,280 --> 02:42:46,830 | order flow and market flow and market structure on that timeframe dealing for our or suggesting higher prices. It's all but a green light just to get in here |
| 868 | 02:42:46,830 --> 02:42:49,920 | and start hunting, buying opportunities using disappointment. |