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3		-ICT: Okay, guys, we are looking at the top down ICT
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	2	+|1 |00:00:11,759 ~-~-> 00:01:22,769 |ICT: This we're looking at the top down ICT approach. Okay. And also, as we've always mentioned before in previous examples of education in my work, everything
	3	+|2 |00:01:22,769 ~-~-> 00:01:32,789 |hinges upon the interest rate market. Okay, whatever you see in the interest rate market will have a driving force in the United States Dollar Index, which
	4	+|3 |00:01:32,789 ~-~-> 00:01:43,049 |is essentially the barometer for foreign currency markets. If US dollar is weak, it bodes well for most foreign currencies. And if the United States dollar is
	5	+|4 |00:01:43,289 ~-~-> 00:01:55,799 |bullish, it bodes poorly for foreign currencies and expect lower prices and sympathy. And obviously, that train of command maintains its infact across all
	6	+|5 |00:01:55,799 ~-~-> 00:02:05,819 |market asset classes, that being the stock market, the commodity markets as well. It's not limited to just currency markets. So, obviously, what do I mean
	7	+|6 |00:02:05,819 ~-~-> 00:02:15,959 |by it all hinges on the interest rate markets while we watch the 10 year five year two year and 30 year market in the yields. Okay, and by looking at the
	8	+|7 |00:02:15,959 ~-~-> 00:02:31,919 |yields. What we look for is, generally the yields are moving in tandem. Okay. In this example, crudely examples, we're looking at a downward shift in yields. So
	9	+|8 |00:02:31,919 ~-~-> 00:02:42,959 |that would indicate that yields are dropping, that is a risk off scenario. So while risk is off, we are no longer looking for buy signals, we're focusing more
	10	+|9 |00:02:42,959 ~-~-> 00:02:55,589 |on the sell side until we see a divergence in the yields. Okay, and this could take form in five year it could be in a 10 year. Generally, you want to be
	11	+|10 |00:02:55,589 ~-~-> 00:02:57,449 |looking at three
	12	+|11 |00:02:58,470 ~-~-> 00:03:08,490 |yields, like for instance, like I trade the British Pound in the fiber. Well, it's crossed with the US dollar. So the triad, the yield triad that I use, as
	13	+|12 |00:03:08,490 ~-~-> 00:03:17,520 |the US yields to UK yields and the German yields as described here in this again, rather crude example, at some point, and usually between two to three
	14	+|13 |00:03:17,520 ~-~-> 00:03:29,250 |months, couple times a year, there's a shift that takes place in the interest rate market. And its quarterly driven. So at some point, the yields will fail to
	15	+|14 |00:03:29,250 ~-~-> 00:03:37,950 |make comparable lows, okay, instinct, but more or less depth Dow Theory, that's what I've applied here is they have to confirm one another. If they don't
	16	+|15 |00:03:37,950 ~-~-> 00:03:45,930 |confirm one another, something's taking place. Fundamentally, I'm not claiming to understand what it is fundamentally that's taking place. I'm just stating
	17	+|16 |00:03:45,930 ~-~-> 00:03:56,460 |that I see it in the chart, following the yields. So in one diverges in this example, you see that the UK and the US yields failed to make lower lows while
	18	+|17 |00:03:56,490 ~-~-> 00:04:07,050 |the German yields did, okay, that's generally an indication that the German markets are less favored. But yes, they probably will move up in 10 in sympathy.
	19	+|18 |00:04:07,710 ~-~-> 00:04:18,060 |So now we see a shift on their way now as the yields are increasing for the next quarter. This generally will be bullish for foreign currencies and or bearish
	20	+|19 |00:04:18,630 ~-~-> 00:04:30,480 |for the US dollar. And this will maintain its impact over the market for a period of time until at some point, the yields will encounter a resistance level
	21	+|20 |00:04:30,480 ~-~-> 00:04:39,600 |of some kind. And that's going to come in the form of one yield failing to make a higher high and or more than one, okay, so what you're doing is you're looking
	22	+|21 |00:04:39,600 ~-~-> 00:04:50,160 |for a shift in the overall trend of the yields, okay, so it's going to tip your hand that something fundamentally is slowing down. There's waning interest in
	23	+|22 |00:04:50,160 ~-~-> 00:04:59,790 |risk, and there may be a turn likely don't sue. So now you want to be a little bit more cautious in your balls by signals. Because we may see a drop in yields
	24	+|23 |00:04:59,790 ~-~-> 00:05:08,040 |which would be a risk off scenario and then the dollar should be rallying at this point. Okay, so these are the concepts that you have to apply, beginning
	25	+|24 |00:05:08,040 ~-~-> 00:05:16,290 |with your top down analysis understanding, are we in a risk on or risk off scenario overall in the interest rate markets. And then once we have that, we
	26	+|25 |00:05:16,290 ~-~-> 00:05:20,400 |can look at a more macro view down to a micro view.
	27	+|26 |00:05:27,660 ~-~-> 00:05:36,060 |We are obviously, beginning all of our analysis with the interest rate markets. And you don't want to have to expect this to shift every single day, okay, you
	28	+|27 |00:05:36,060 ~-~-> 00:05:44,880 |want to be having a higher timeframe, macro view on interest rates, and monitoring that based on our buy signal oriented buy program or sell program.
	29	+|28 |00:05:45,510 ~-~-> 00:05:54,780 |Next, obviously, we would be considering the direction of the United States dollar and the technical levels that that in the sea is currently being impacted
	30	+|29 |00:05:54,780 ~-~-> 00:06:08,190 |by obviously, it helps to trade with the understanding that's found in the futures market, that being the treasuries in the Tino markets that mean the five
	31	+|30 |00:06:08,190 ~-~-> 00:06:22,170 |year 10 year and 30 year treasuries. The stock indices are always a good to watch, I go from interest rates to the US dollar to Treasury markets. And check
	32	+|31 |00:06:22,170 ~-~-> 00:06:31,860 |out what the overall risk tone is in the stock market are the averages again confirming using Dow Theory? If they're not, it may be an indication that there
	33	+|32 |00:06:31,860 ~-~-> 00:06:41,580 |may be a short term and or longer term shift taking place in the marketplace. Then I obviously look at the CRB index i try to get a feel for Are we still in a
	34	+|33 |00:06:41,580 ~-~-> 00:06:50,730 |risk on risk off scenario that's confirmed with the commodity markets and if the CRB is bullish, that would indicate that we are in fact risk one. And that would
	35	+|34 |00:06:50,730 ~-~-> 00:07:00,600 |be bearish for the dollar and bullish for foreign currencies. And obviously, it always helps to look at a few other select markets like gold and oil, because
	36	+|35 |00:07:00,600 ~-~-> 00:07:04,800 |those are good barometers for risk on risk off as well.
	37	+|36 |00:07:10,590 ~-~-> 00:07:23,220 |For the anticipatory stage, okay, the first stage of analysis is always going to be the anticipatory stage, okay, you're going to spend more time in this stage
	38	+|37 |00:07:23,220 ~-~-> 00:07:33,540 |of your analysis than any other stage. And it begins with seasonal tendencies. That could be the are we in the bush quarter or a bearish quarter based on price
	39	+|38 |00:07:33,540 ~-~-> 00:07:44,760 |action? Are we in an area where seasonally we expect prices to rally or decline? That there's a subtle taste that takes place in generally every marketplace
	40	+|39 |00:07:44,760 ~-~-> 00:07:53,280 |there, that is tradable? And it's my advice to use that then learn what they are, and I'm going to share with you a few of them that are very strong in this,
	41	+|40 |00:07:54,450 ~-~-> 00:08:03,210 |this presentation over the course of this presentation, you're gonna learn more, but you have to have an understanding of where we are seasonally. And obviously,
	42	+|41 |00:08:03,990 ~-~-> 00:08:12,930 |you know, while we're looking for seasonal influences in the marketplace, you're always watching that yield SMT. Okay, you know, we're just looking for the triad
	43	+|42 |00:08:12,930 ~-~-> 00:08:20,460 |to be diverging comparable to the highs and the lows, one's going to fail to make a higher high. And that's going to give you an indication that we're
	44	+|43 |00:08:20,460 ~-~-> 00:08:30,210 |probably seeing a shift from risk on to risk off, and vice versa. Okay. And we always look at correlated pairs that we trade, and it's good to be a specialist
	45	+|44 |00:08:30,210 ~-~-> 00:08:40,500 |in market trading, because it's not, to me, it's me, it's never been advantageous to be a trader in every single every market, okay? Because you
	46	+|45 |00:08:40,500 ~-~-> 00:08:48,000 |can't watch too many things at one time you have a really good relationship with the marketplace. If you spread too thin, obviously, you How are you going to get
	47	+|46 |00:08:48,000 ~-~-> 00:08:56,730 |a fix on what's going on in price. So be a specialist, you know, pick one or two markers that closely correlated strongly correlated, and inspecting is basically
	48	+|47 |00:08:57,480 ~-~-> 00:09:11,460 |trade likes, look at correlate highs and lows. And obviously, you and me looking at the stock market indices, NASDAQ Composite Index, the s&p and such. Okay,
	49	+|48 |00:09:11,460 ~-~-> 00:09:19,170 |every week, you want to be maintaining a watchful eye on the CO T and we watch the net serious position. Okay, the overall net position, are they bullish or
	50	+|49 |00:09:19,170 ~-~-> 00:09:28,500 |bearish? And are they lessening or increasing their shorts? That's going to be an indication whether or not the market is in fact, bullish, bearish or if the
	51	+|50 |00:09:28,500 ~-~-> 00:09:39,960 |current market moves been on their way is in fact legit or if it's not. You always watch the open interest and the premiums between the nearby in next month
	52	+|51 |00:09:39,960 ~-~-> 00:09:51,030 |out on your currencies. And you're going to be looking for indications that there may be a strong demand for or waning demand. If there is a premium for
	53	+|52 |00:09:51,030 ~-~-> 00:10:05,100 |that particular market. market sentiment obviously, you know, this could be derived that by using online market vein numbers, we can look at sentiment based
	54	+|53 |00:10:05,100 ~-~-> 00:10:13,650 |on chatter that's going on in the news, the forums, talking heads on TV, if everybody's expecting the same thing, it's generally going to be the other way.
	55	+|54 |00:10:14,040 ~-~-> 00:10:23,700 |And obviously, we always have a watchful eye on key higher time frame support resistance levels. That is the mack daddy of all things that we do in technical
	56	+|55 |00:10:23,700 ~-~-> 00:10:38,610 |analysis, understand our key support resistance levels. Alright, the execution stage before we take any trade before we do any order entry, okay, once we have
	57	+|56 |00:10:38,610 ~-~-> 00:10:48,810 |a higher timeframe, top down analysis done, we have an understanding of where we are at in terms of yields and interest rates. Okay, we got to get for the day
	58	+|57 |00:10:48,810 ~-~-> 00:10:58,500 |that you would actually be doing any trading, you still get a market, major market tone, or are we still bullish overall going into the new day? And what I
	59	+|58 |00:10:58,500 ~-~-> 00:11:07,800 |mean by that, what are we risk on a row scarf, you have to understand this, because if you're buying generally in a risk on scenario, that's good. But if
	60	+|59 |00:11:07,800 ~-~-> 00:11:13,470 |you're buying foreign currencies in a risk off scenario, you have the tide moving against you. And it's very, very difficult to make money in that
	61	+|60 |00:11:13,470 ~-~-> 00:11:23,310 |situation. So it pays to understanding what it is you're doing every single day. And judging what markets doing going into London, are we rejecting highs or
	62	+|61 |00:11:23,310 ~-~-> 00:11:32,610 |rejecting lows, probably pricing in the daily low daily high, you want to be trading in that direction on premise. And obviously it goes without saying that
	63	+|62 |00:11:32,610 ~-~-> 00:11:42,870 |if we have a buy or sell for programming, higher timeframe, based on directional premise on monthly, weekly, daily, and for our if we're in a bull program, by
	64	+|63 |00:11:42,870 ~-~-> 00:11:45,210 |program rather, you will be focusing on the buy signals.
	65	+|64 |00:11:47,700 ~-~-> 00:11:57,510 |Obviously, we have to have our macro support resistance levels from the higher time frame monthly, weekly, daily for hour and one hour on our sub 60 minute
	66	+|65 |00:11:57,510 ~-~-> 00:12:05,160 |charts. So in other words, our 515 minute charts have to have these higher time frame support resistance levels in the chart, you have to see them be aware of
	67	+|66 |00:12:05,160 ~-~-> 00:12:11,580 |them, okay, don't just have them written on your piece of paper, having your chart, look at them know where they are, where they're at, you'll get a better
	68	+|67 |00:12:11,580 ~-~-> 00:12:21,420 |feel for what price is actually trying to do. market structure. Okay, before we execute, we have to understand where are we at. If we're bullish, we're looking
	69	+|68 |00:12:21,420 ~-~-> 00:12:29,310 |for intermediate term or long term lows on the left hand side of our chart, okay, so we're going to be looking for short term to medium term lows to be
	70	+|69 |00:12:29,310 ~-~-> 00:12:40,680 |keying off of to get ourselves in sync with the higher time frame macro view. Okay, and market structure is a key role in that understanding in execution and
	71	+|70 |00:12:40,710 ~-~-> 00:12:49,260 |your trading. If you're bearish, okay, you want to be seeing out long term or short term high on the left hand side of your chart. And where you're trading
	72	+|71 |00:12:49,260 ~-~-> 00:12:57,120 |now you'll be shooting for intermediate term highs or short term highs to be getting short and getting in sync with that overall market structure that is
	73	+|72 |00:12:57,120 ~-~-> 00:13:10,470 |bearish. The market flow obviously, you have to understand simply because the market is poised to trade higher. And technically, yields may be moving up and
	74	+|73 |00:13:10,470 ~-~-> 00:13:21,870 |risk or all those things are in place. You know, support has been traded to it makes a lot easier trading if we use market flow and a higher timeframe for our
	75	+|74 |00:13:21,870 ~-~-> 00:13:32,250 |daily to make sure that we have the tide in our favor. Okay, and then once it starts moving, it makes trading a lot easier. Okay, so we have a bullish market
	76	+|75 |00:13:32,250 ~-~-> 00:13:43,020 |structure, bullish market flow with a bullish macro view, okay, and we're trading with risk on scenarios in a buy program. Now, simply moving to a simple
	77	+|76 |00:13:43,050 ~-~-> 00:13:55,410 |time and price theory of expecting the low to form during London. Okay, you can expect the Asian range to be a very key role in your order placement, you'd be
	78	+|77 |00:13:55,410 ~-~-> 00:14:03,360 |looking for the Asian range high or less to look for your buy signals. And vice versa. If you're expecting a risk off scenario, you'd be using the time of day
	79	+|78 |00:14:03,360 ~-~-> 00:14:15,540 |principle of the Asian range low or greater looking for a Judas swing up and looking for your shorts to be anywhere in the London open and or the New York
	80	+|79 |00:14:15,540 ~-~-> 00:14:27,210 |open sessions to be keying off of that directional premise in the higher timeframe. Drill down through all the steps we just covered here. More detail
	81	+|80 |00:14:27,270 ~-~-> 00:14:36,390 |obviously will be given as we go through actual real top down analysis and real breakdown of the market moved it took place in the spring into summer months of
	82	+|81 |00:14:36,390 ~-~-> 00:14:46,470 |2012. But for now what we're doing is is we're outlining really the top down approach in a nutshell so that we you going into your charts every day. This is
	83	+|82 |00:14:46,470 ~-~-> 00:14:54,600 |the framework that you should have in your your psyche as a trader, what it is that you're doing every day is it on a daily basis. Is it the same thing over
	84	+|83 |00:14:54,600 ~-~-> 00:15:01,320 |and over again, this is my routine. You may tweak it a little bit. You may take some things out of here and move it around. You do something a little bit
	85	+|84 |00:15:01,320 ~-~-> 00:15:09,570 |different in terms of order. But these are essential to me in terms of my concepts, my material, the things that I use when I do my analysis. Then
	86	+|85 |00:15:09,570 ~-~-> 00:15:18,540 |finally, once we understand what we're supposed to be doing based on the hard timeframe premise, it goes into your order entries. Okay, and 90% of the time,
	87	+|86 |00:15:18,570 ~-~-> 00:15:31,230 |I'm using limit orders to get in and get out and stop orders for protection. And unless I'm trading a breakout, and I wanted to keep buying strength, or selling
	88	+|87 |00:15:31,230 ~-~-> 00:15:39,300 |weakness, okay, that's the only time I'm using a stop just 10% of the time. So what does that tell you? 90% of the time, I'm not trading breakouts. Okay, I'm
	89	+|88 |00:15:39,300 ~-~-> 00:15:48,450 |actually fading the market moves, trade entry orders, we're going to talk about that in the last module, because we're gonna actually give you specific orders
	90	+|89 |00:15:48,450 ~-~-> 00:15:59,700 |and specific examples on how to use these orders for actual demo trading counts. So you can you can practice in the sandbox and see whether or not these things
	91	+|90 |00:15:59,730 ~-~-> 00:16:15,270 |work for you going forward. Alright, the reactionary stage right there, um, basically, there's times the market where, if you're in the trade, okay, and you
	92	+|91 |00:16:15,270 ~-~-> 00:16:27,150 |have little to no movement at all, you've anticipated a market move, and price does go stagnant, it goes nowhere, it just starts going sideways, okay? That's a
	93	+|92 |00:16:27,150 ~-~-> 00:16:37,860 |time for you to more or less kill the trade, especially if you're expecting a price move. And we're moving into a specific time of day where volatility should
	94	+|93 |00:16:37,860 ~-~-> 00:16:44,700 |be increasing, but it isn't. Okay, it's just better just to close the trade. Do not
	95	+|94 |00:16:44,700 ~-~-> 00:16:55,950 |expect your success to be hinged upon one single event, one single trading day, okay. And I think if you really take a look at your heaviest losses, look at
	96	+|95 |00:16:55,950 ~-~-> 00:17:07,290 |your biggest losing days, okay? Or your string of losing days. I guarantee if you go back the mindset you had going into that trade is that you are expecting
	97	+|96 |00:17:07,290 ~-~-> 00:17:16,980 |and hoping and praying that this move is the winner. This is going to be the one that puts you over the top or get you back to even okay. Don't Don't think like
	98	+|97 |00:17:16,980 ~-~-> 00:17:30,780 |that. Okay. demand the tools to place you in optimal trade entry. If it doesn't provide you that and you don't see a very short term near term feedback in your
	99	+|98 |00:17:30,780 ~-~-> 00:17:37,800 |trade? In other words, are you seeing the things that you're expecting in terms of volatility? Are you seeing a rejection at the lows that you were buying into?
	100	+|99 |00:17:38,010 ~-~-> 00:17:44,220 |Are you seeing are you seeing follow through the upside after you bought that long, if you're not seeing that, and it's going stagnant, and you're getting
	101	+|100 |00:17:44,220 ~-~-> 00:17:53,460 |close to the end of the day, going to the London close? Or if you're going into New York open, okay, and prices are stagnant. It may actually bounce up against
	102	+|101 |00:17:53,460 ~-~-> 00:18:02,280 |you, if you're, if you're short. Or if you're if you're long, it may actually pull back against you or could just go into a longer term consolidation. Why sit
	103	+|102 |00:18:02,280 ~-~-> 00:18:12,180 |in it? Okay, if it's showing you failure to move, that's your time to react, kill the trade. There's no risk now. Okay? If it runs off, and if you would have
	104	+|103 |00:18:12,180 ~-~-> 00:18:24,330 |stayed in made money, big deal, let it go. Okay. But we act quickly when trying to preserve our capital. We act slowly when we're trying to make money okay, we
	105	+|104 |00:18:24,330 ~-~-> 00:18:35,730 |want to be methodical we want to be very very focused. Okay, in detail oriented, when it comes to exposing our money to risk we want to really put it to work
	106	+|105 |00:18:35,940 ~-~-> 00:18:47,430 |when there's something highly probable in our favorite to take advantage of why risk on very low odd setups there's no reason to use enough of them happening in
	107	+|106 |00:18:47,430 ~-~-> 00:18:54,660 |a week there's enough I'm happening in a month and over the year Good grief, you have tons and tons opportunity to make money. Don't sit in questionable trades.
	108	+|107 |00:18:54,810 ~-~-> 00:19:03,540 |If it's not moving for you kill the trade take another setup. If you see rejection of the key support level that's counter your expectation or you're
	109	+|108 |00:19:03,540 ~-~-> 00:19:14,670 |injured and you're in a trade kill it, why eat up open profits, okay? Turn your paper profits into literal profits go to cash, move to the sidelines, take your
	110	+|109 |00:19:14,670 ~-~-> 00:19:25,590 |profits and get out. Okay? If you see rejection, strong rejection, something comes across the wires and hits you you know unexpectedly which you know in the
	111	+|110 |00:19:25,590 ~-~-> 00:19:34,830 |event that major catastrophe or global national event something that nature you know, that can rock the markets you never really know when that's gonna happen.
	112	+|111 |00:19:35,190 ~-~-> 00:19:43,710 |So if you see that it's this better this the collapse the trade and just get out. You could always get back in. Always get back in even for those folks that
	113	+|112 |00:19:43,710 ~-~-> 00:19:54,720 |are in carry trades. Okay, you can get back in those moves. Okay. And look what happened in Japan. If, you know, the earthquake hit New tsunami took out new
	114	+|113 |00:19:55,530 ~-~-> 00:20:05,850 |reactors and the whole world's waiting for New Japan. You slip into notion in dissolve those things, we can't expect them the other acts of God. So we have
	115	+|114 |00:20:05,850 ~-~-> 00:20:15,240 |to, more or less take ourselves out of out of the risk environment, okay in stand on the sidelines where there's no more risk, okay? And we can you
	116	+|115 |00:20:15,240 ~-~-> 00:20:25,560 |hopefully gain a more objective view of the marketplace and then react objective news with objective analysis, not you reactionary. gambling and trying to get in
	117	+|116 |00:20:25,560 ~-~-> 00:20:34,890 |there and throw the dice and chase that near the market chasing you mentality, it. That's not, that's not how we make money, okay? You want to react by getting
	118	+|117 |00:20:34,890 ~-~-> 00:20:43,230 |out and take yourself out of the risk. And obviously, if you're sick, and if you have a life event that takes place and requires your time, your kids might have
	119	+|118 |00:20:43,230 ~-~-> 00:20:51,510 |something that you know, requires you as a parent, where your spouse needs you to do something with them. You What takes precedence is your relationship in the
	120	+|119 |00:20:51,510 ~-~-> 00:20:59,790 |real world or the charts. Okay? Hopefully, you know, I appreciate you guys want to spend time with me in these video modules, but I certainly enjoy it, but I
	121	+|120 |00:20:59,790 ~-~-> 00:21:08,400 |enjoy my family more. And you know, if it's going to be a choice, whether if it's you and YouTube and baby pips, it's going to be my family. Okay, so if
	122	+|121 |00:21:08,400 ~-~-> 00:21:17,370 |something takes place that requires me and my time or if I get sick, you gotta react if you're in a, in a trade, and you just think that you're not going to be
	123	+|122 |00:21:17,370 ~-~-> 00:21:27,240 |able to adequately manage the position, react, React responsibly, and just collapse the trade and or tighten up the stop loss. So that way, if you do fall,
	124	+|123 |00:21:27,540 ~-~-> 00:21:34,200 |ill or you fall, disconnected to the marketplace, because of life events that need to take place, maybe there's a death in your family,
	125	+|124 |00:21:34,800 ~-~-> 00:21:44,160 |you're going to be able to think objectively during that. Okay, grief can have a major impact on a trade your psyche, and it's just better, just more or less,
	126	+|125 |00:21:44,400 ~-~-> 00:21:47,280 |remove yourself from the risk. Okay, and you can always get back in.
	127	+|126 |00:21:52,710 ~-~-> 00:22:08,460 |Alright guys, fractal analysis in price action. Alright, what's a fractal? Well, a fractal is a pattern in nature, and in many things that, you know, as a as a
	128	+|127 |00:22:08,460 ~-~-> 00:22:21,180 |Christian, okay. I believe there is a creator. Okay. And I give thanks to him on a daily basis for the insights that I've been blessed with. And I share with
	129	+|128 |00:22:21,180 ~-~-> 00:22:34,140 |you. I think that fractals are one little signature on his part. Also, that the industry they just said, there's a design to this, okay, everything around this
	130	+|129 |00:22:34,320 ~-~-> 00:22:49,230 |has a specific design. Okay, there it shows intelligence behind it. And everything in nature has this same phenomenon. It's much like Fibonacci. But a
	131	+|130 |00:22:49,230 ~-~-> 00:23:03,240 |fractal is defined simply as a pattern that is repeated in infinite size up and down. In other words, something that you see on one scale, okay, if you scale
	132	+|131 |00:23:03,240 ~-~-> 00:23:15,090 |into it and zoom in, you can see it same pattern repeated on lower levels. And obviously, the same thing, if you magnify it out and look at it as a macro view.
	133	+|132 |00:23:16,170 ~-~-> 00:23:29,760 |Well, that same principle is in effect in price. Okay, and price, because I'll give you a real generic way of viewing it. When I say price. Okay, what comes to
	134	+|133 |00:23:29,760 ~-~-> 00:23:40,290 |mind to you? Is it a daily chart? Is it a one minute chart? Is it a tick chart, for some of you have may have been a weekly chart, or it could have been a five
	135	+|134 |00:23:40,290 ~-~-> 00:23:53,250 |minute chart, it doesn't matter what time frame that we are referring to, it's always just the last price. Think about that. You're looking at price right now.
	136	+|135 |00:23:55,770 ~-~-> 00:24:09,090 |At the time of this recording, the cables trading at 161 74. That 164 by itself absolutely is useless to you, unless you have a understanding of where you're at
	137	+|136 |00:24:09,180 ~-~-> 00:24:18,840 |in terms of the big picture. Okay, by having the big picture. And using a higher timeframe, perspective in your analysis and understanding key support resistance
	138	+|137 |00:24:18,840 ~-~-> 00:24:29,040 |levels. You can go into the marketplace and see patterns that repeat over and over and over again. There's specific fractal patterns. And I'm not gonna reveal
	139	+|138 |00:24:29,040 ~-~-> 00:24:39,630 |them all in this module, but you'll have a few of them shared throughout the presentation over the last few parts of the series. But the fractal analysis
	140	+|139 |00:24:39,660 ~-~-> 00:24:50,580 |concept can be applied to the simple optimal trade entry. Okay. What does that mean? How do we how do we go into the marketplace looking for a fractal? What is
	141	+|140 |00:24:50,580 ~-~-> 00:24:57,750 |it? Okay, it's one thing that you, myself and other folks don't understand fractal analysis. We can go and show you a chart in hindsight say look, this is
	142	+|141 |00:24:57,750 ~-~-> 00:25:06,960 |where this did that. This is where it that's Great, okay, but without a firm understanding what a fractal is, and what it looks like and how it's applied to
	143	+|142 |00:25:06,960 ~-~-> 00:25:16,530 |the marketplace is not going to do anybody any good. Okay, so this section is really just going to highlight an example of one form of a fractal. Okay. And
	144	+|143 |00:25:16,560 ~-~-> 00:25:26,640 |there's all types of fractals there. So there's many different kinds of fractals in terms of price action. But the main thing is, is if you can't understand what
	145	+|144 |00:25:26,640 ~-~-> 00:25:37,500 |a fractal is, on a higher time frame premise, okay? It's going to mean little, to no good use to you, if you're trying to apply it to intraday charts. Okay, so
	146	+|145 |00:25:37,530 ~-~-> 00:25:47,310 |what am I, what am I saying here? Okay, well, in this example, we're going to talk about a fractal, okay? And this is going to give you a price swing, and
	147	+|146 |00:25:47,310 ~-~-> 00:25:59,010 |we're going to more or less break it down and show you more insights on how price in itself works within a fractal nature. Alright, we're looking at, it
	148	+|147 |00:25:59,010 ~-~-> 00:26:10,620 |could be any price, any commodity, any stock, it could be anything. But for now, we're just going to talk about this being a currency pair. Okay. So price is
	149	+|148 |00:26:10,620 ~-~-> 00:26:20,850 |trading within a specific range. Okay. And we noticed that above where price is currently, this is a key resistance level, okay. One would expect if we're this
	150	+|149 |00:26:20,910 ~-~-> 00:26:31,890 |close to it, price would eventually try to run up to that key resistance level. Now as price runs higher and approaches that resistance level, at some point, it
	151	+|150 |00:26:31,890 ~-~-> 00:26:42,120 |will hit that level, we as traders, and technical traders, we would expect reasonably there would be a pullback or a bounce away from that particular price
	152	+|151 |00:26:42,120 ~-~-> 00:26:51,630 |level. At some point price will come down in that retracement, okay, in swing low, make a small little short term low.
	153	+|152 |00:26:51,930 ~-~-> 00:27:03,120 |When that takes place, we now have a new reference point for short term support. Okay. Now, obviously, if we have short term support here, and a key resistance
	154	+|153 |00:27:03,120 ~-~-> 00:27:13,080 |level like that, a technical trader like we are, are aspiring to be when prices starting to bounce, again, on a short term basis, we could reasonably expect or
	155	+|154 |00:27:13,080 ~-~-> 00:27:25,350 |anticipate another retest or run attempt to get back to that resistance level. Okay. At some point, it may get up there and blow through it, but many times it
	156	+|155 |00:27:25,350 ~-~-> 00:27:34,230 |will fail to do that. Okay, and then start to come back down again. Now, here's where if you understand optimal trade entry, in which is basically 60 to 70% to
	157	+|156 |00:27:34,230 ~-~-> 00:27:47,670 |a certain level on a price swing, if you see this, this could lower you into believing that this could be perhaps a bull flag. It could be perhaps another
	158	+|157 |00:27:48,090 ~-~-> 00:28:04,110 |ABCD price extension, okay, or it could be a top Okay, we have to go back to that higher timeframe resistance level, that takes precedence that is the one
	159	+|158 |00:28:04,110 ~-~-> 00:28:15,840 |that we have more emphasis behind not the short term little blips in the marketplace, okay. We expect sellers to be heavier in market than buyers. Okay,
	160	+|159 |00:28:15,840 ~-~-> 00:28:29,640 |and we anticipate price to break below the low here. Okay, if we see that break below, okay, that's going to give us a shift in what market flow and market
	161	+|160 |00:28:29,640 ~-~-> 00:28:43,290 |structure we're looking at a market that's breaking down if this low is taken out. Now, if price does break down lower and breaks through that now we are
	162	+|161 |00:28:43,290 ~-~-> 00:28:57,870 |confirmed, we have a bearish market flow and a early market structure reversal Okay. So now, we could reasonably expect this higher timeframe optimal trade
	163	+|162 |00:28:57,870 ~-~-> 00:29:11,430 |entry Okay. That would be the higher timeframe turning point. And now we can look for continued sell signals, okay. So we see here a very standard optimal
	164	+|163 |00:29:11,430 ~-~-> 00:29:25,800 |trade entry top formation the market broke down okay. In itself, this is a fractal. Okay, look at this pattern right here. This in itself is a pattern that
	165	+|164 |00:29:25,800 ~-~-> 00:29:39,630 |is applicable in fractal analysis. As price breaks down and moves further lower, okay, go back to the concepts that we just learned in part two of the trading
	166	+|165 |00:29:39,630 ~-~-> 00:29:54,570 |plan development series. Range contraction, range expansion and trading range to trend trading rings the trend, okay, so consolidation, to trend consolidation to
	167	+|166 |00:29:54,570 ~-~-> 00:30:05,640 |trend in this region here, even though we saw price movement, up, down, up Up down to make the optimal trade entry formation here. That's still a
	168	+|167 |00:30:05,640 ~-~-> 00:30:22,800 |consolidation. See the range here? That's a consolidation, this move here is the trend, okay, or the price swing out of consolidation. So now, when price breaks
	169	+|168 |00:30:22,800 ~-~-> 00:30:32,400 |down like this, what do we as technical traders expect to see another consolidation. So what's going to take place in the consolidation is going to be
	170	+|169 |00:30:32,400 ~-~-> 00:30:45,360 |a bounce, it could trade up to another resistance level, okay, which would be an old support and price will eventually trade back into a consolidation. Okay, and
	171	+|170 |00:30:45,360 ~-~-> 00:30:58,770 |we can now look for inside this consolidation, smaller, short term, optimal trade entry tops. Thank you, we have a higher time frame price leg that's
	172	+|171 |00:30:58,770 ~-~-> 00:31:14,520 |already turned on a higher timeframe key support and resistance level. As price broke down, we are now in our minds focusing on lower level 515 one hour basis,
	173	+|172 |00:31:15,390 ~-~-> 00:31:26,130 |optimal trade entries to look for what lower prices, okay, so by having this mindset going in, and trading during consolidations, we're essentially limiting
	174	+|173 |00:31:26,130 ~-~-> 00:31:38,460 |our exposure to the market by only selling short. Oh, basically an established weak market. Okay. And we have a bias going into our analysis. So we're not
	175	+|174 |00:31:38,460 ~-~-> 00:31:44,730 |going to be subjective and, and just be logged into you buying and selling buying and selling simply because
	176	+|175 |00:31:44,820 ~-~-> 00:31:54,750 |the price is doing whatever it's doing at the time we sit down in front of our monitors. We're focused on one specific process and we have the higher time
	177	+|176 |00:31:54,750 ~-~-> 00:32:03,300 |frame support resistance levels on our or on our side, we have the fact that we have broken market structure, market flows on our side. Okay, because now think
	178	+|177 |00:32:03,540 ~-~-> 00:32:17,100 |just looking at this price chart right here if this is a currency market flow is still bearish until we take out this swing high. Before this swing high formed,
	179	+|178 |00:32:17,340 ~-~-> 00:32:27,570 |market structure was still bearish until this swing high was taken out. Obviously, we keep making lower lows and lower highs. And we maintain a sell
	180	+|179 |00:32:27,720 ~-~-> 00:32:42,180 |scenario in our trading, looking for shorter term. You know, words, lesser timeframe, fractal pattern of optimal trade entry tops, okay? Again, price will
	181	+|180 |00:32:42,180 ~-~-> 00:32:52,650 |stay within this consolidation as price moves up inside of each one of these price legs. Every single one of these, if this is a daily chart, everyone needs
	182	+|181 |00:32:52,650 ~-~-> 00:33:03,240 |smaller price swings in here. If you look at smaller timeframe charts, you'll see optimal trade entries on a lower timeframe near the highs and the tops.
	183	+|182 |00:33:03,630 ~-~-> 00:33:11,430 |They're going to be there because it's fractal in nature. Okay, it's gonna be there, I guarantee you, we're gonna look at some examples. Cuz I know you're
	184	+|183 |00:33:11,430 ~-~-> 00:33:18,180 |probably scratching his head. Okay, this is great you to show me a line chart, Michael, but I really want to see want to be able to digest what you're what
	185	+|184 |00:33:18,180 ~-~-> 00:33:24,630 |you're showing me and I'm gonna get to that. But this is the theory. Okay, so we, we have to have this before we go into the price chart. Otherwise, this is
	186	+|185 |00:33:24,630 ~-~-> 00:33:34,620 |just one look like I'm cherry picking. Eventually, price will move outside of the consolidation, and into a trending move again. So we move from
	187	+|186 |00:33:34,650 ~-~-> 00:33:45,690 |consolidation, to trending move to consolidation to trending move. Now we have a complete fractal on the higher timeframe inside of this overall price structure.
	188	+|187 |00:33:46,500 ~-~-> 00:33:57,690 |This pattern can be broken down into smaller sub units on the lower timeframes. And you'll see the same pattern you see here on the lower timeframes as well. By
	189	+|188 |00:33:57,690 ~-~-> 00:34:06,420 |having this perspective, going into your analysis, having it on a higher timeframe first and then moving down to a lower timeframe, it helps with your
	190	+|189 |00:34:06,420 ~-~-> 00:34:13,710 |daily bias. It keeps you on the right side of the market, generally unless there's a major market reversal. But hopefully if you if you're monitoring the
	191	+|190 |00:34:13,710 ~-~-> 00:34:21,660 |macro view Anyway, you should be anticipating that anyone less is an act of God or something new. Unexpected takes place in rocks the market.
	192	+|191 |00:34:26,970 ~-~-> 00:34:40,770 |Okay, so we have our fractal pattern here. It's a down swing in prices a swing that you can see in any timeframe. It's not limited to any specific one. But
	193	+|192 |00:34:41,550 ~-~-> 00:34:54,150 |what would it look like in a real chart? Well, it just so happens that I'm looking at the cable and we're going to use today's example. So it's it's more
	194	+|193 |00:34:54,150 ~-~-> 00:35:01,440 |timely. It's it's something that you can look at right now. I know some of you probably are watching this video. Probably years from the time I did the
	195	+|194 |00:35:01,440 ~-~-> 00:35:15,990 |recording, but as of the moment I did this I screen captured what price was dealing and this is a 15 minute chart of the cable British Pound USD alright and
	196	+|195 |00:35:16,020 ~-~-> 00:35:28,710 |if you look at this alright if you look at this we have a major resistance level here 163 price trades up to that much in the same way we are our crude example
	197	+|196 |00:35:28,770 ~-~-> 00:35:40,860 |to the left shows price goes up comes down okay and then comes up and makes another attempt to get back to that resistance level but it fails and it gives
	198	+|197 |00:35:40,860 ~-~-> 00:35:54,780 |you an optimal trade entry note this low right here and now the fractal example in the upper left that's that low that would shift everything to bearish okay
	199	+|198 |00:35:55,710 ~-~-> 00:36:07,230 |that is broken here. So, now what you would be looking for is optimal trade entry sell patterns because now you are an established bearish market okay.
	200	+|199 |00:36:07,650 ~-~-> 00:36:18,210 |Everything you do from that point on should be looked for selling okay even your scalps okay? If you're an intraday trader look for smaller short term optimal
	201	+|200 |00:36:18,210 ~-~-> 00:36:29,250 |trade entry sell signals okay. Focusing on one pattern in fractal in nature you can find several opportunities in this example alone that gives you optimal
	202	+|201 |00:36:29,250 ~-~-> 00:36:47,040 |trade entries. For instance this optimal trade entry that we see here when it broke this example of market flow changing to bearish this swing high has to
	203	+|202 |00:36:47,040 ~-~-> 00:37:00,990 |break before it becomes bullish again price moves lower trades up and inside here just this small little timeframe moving in here is a small optimal trade
	204	+|203 |00:37:00,990 ~-~-> 00:37:12,420 |entry in here and sells off look at this high here to this high here I mean this low here, do you see how price trades down up into an optimal trade entry and
	205	+|204 |00:37:12,420 ~-~-> 00:37:26,850 |then look at the sell off see that look at this high here in this low here in this high here? That's optimal trade entry. Okay. Look how many times it gives
	206	+|205 |00:37:26,850 ~-~-> 00:37:42,210 |you optimal trade entries just in that small section of time. See this high here to this low here price trades down comes all the way back up. Optimal trade
	207	+|206 |00:37:42,210 ~-~-> 00:37:53,700 |entry sells off again. Look at the price structure here it trades down comes back up optimal trade entry again sells off. You see how by using a higher time
	208	+|207 |00:37:53,700 ~-~-> 00:38:06,090 |frame premise. You can use fractal fractal analysis to keep you on one side of the market keying off of one specific approach to trading in this case being a
	209	+|208 |00:38:06,090 ~-~-> 00:38:25,170 |seller and it will keep you more or less you with the right bias Okay. Now notice the high to low here. Okay this high to this low. This is one price lake
	210	+|209 |00:38:25,530 ~-~-> 00:38:36,780 |or one major dominant price swing then we had a major retracement deep in here. Okay? If you go and look at these high here to this low we have a optimal trade
	211	+|210 |00:38:36,780 ~-~-> 00:38:51,300 |entry. Okay. So now think about it. We use the fractal pattern here in this leg here, but now zoom out and don't look so close. In other words if we move maybe
	212	+|211 |00:38:51,300 ~-~-> 00:39:07,320 |to an hourly chart you would see this high to this low up to this high as a fractal pattern and sync capacity it shows here okay. So this high to the low
	213	+|212 |00:39:07,740 ~-~-> 00:39:20,310 |would be more or less established in an example of being this high this low. And this low to this high would be crudely exampled by this low to this high. So
	214	+|213 |00:39:20,310 ~-~-> 00:39:26,310 |watch what happens the same concept is now going to be applied with this price swing from high
	215	+|214 |00:39:26,970 ~-~-> 00:39:40,230 |to low to high. This is the low market structure breaks down here. Okay, see this low? It breaks right there. So now what do you do? You look for optimal
	216	+|215 |00:39:40,230 ~-~-> 00:39:55,380 |trade entry shorts. Here's your high trades down to a low starts to run up. What do you expect optimal trade entry? high low. Here's your retracement down. Look
	217	+|216 |00:39:55,380 ~-~-> 00:40:10,230 |it happens again. See this high to this low also Trade entry down. Okay? Same thing here very short term, high, down to low. And in here, this is where we
	218	+|217 |00:40:10,230 ~-~-> 00:40:23,790 |start to see what a breakdown did not fulfill. Look what happens here. See what's to happen we have this high turn. So now we have a probable change in
	219	+|218 |00:40:23,790 ~-~-> 00:40:36,660 |direction, where now market flow has shifted to bullishness. So this, this fractal is now a replication of this price swing. So if we look at this high to
	220	+|219 |00:40:36,660 ~-~-> 00:40:49,770 |this low in terms of pit magnitude and odds, the price swing, it's replicated in terms of distance in the words this range from low to high is essentially the
	221	+|220 |00:40:49,770 ~-~-> 00:40:52,920 |same thing you see here, this high to this low
	222	+|221 |00:40:59,880 ~-~-> 00:41:12,660 |market turning points. Alright, we talked about market flow, and we talked about market structure. But without having it understood on the actual individual
	223	+|222 |00:41:12,660 ~-~-> 00:41:21,330 |candles or bars. You know, it can be a little unnerving to some folks that are just starting to watch this and scratching their head thinking, you know, what,
	224	+|223 |00:41:21,360 ~-~-> 00:41:32,100 |what am I supposed to be looking for? Well, regardless of what time frame you're looking at, okay, if you have a pattern that is looking for a sell scenario,
	225	+|224 |00:41:32,550 ~-~-> 00:41:45,720 |okay, you're looking for a sell scenario, there are several opportunities to use price to get you into a move. Okay, and for instance, we're gonna take this is a
	226	+|225 |00:41:45,930 ~-~-> 00:41:54,720 |turning point for a sell as price runs up, and we're going to be assuming that this is a resistance level open here of some kind. And maybe this is a five
	227	+|226 |00:41:54,720 ~-~-> 00:42:03,420 |minute chart. Okay, you zoom down to a five minute chart into that resistance level and a time of day when you would expect the turn to take place for
	228	+|227 |00:42:03,420 ~-~-> 00:42:12,420 |instance, in London. And we see the price run up okay, on this one, one kilohertz is going to represent in this example a five minute candle, then we
	229	+|228 |00:42:12,420 ~-~-> 00:42:23,910 |see the lower candle here form. So now we have a five minute swing high. Now price will come down, okay, and it may even come up here. Now, what does this
	230	+|229 |00:42:23,910 ~-~-> 00:42:41,700 |look like? This would be what an optimal trade entry sell signal, okay? In here, okay, in here, we have another short term, swing high. This is a high with two
	231	+|230 |00:42:41,700 ~-~-> 00:42:50,730 |lower highs on sorry with the two lower highs on either side of it. So if you see this pattern, okay, in this whole range, this whole range could be as little
	232	+|231 |00:42:50,730 ~-~-> 00:43:04,890 |as five pips. 10 pips, okay? You could be selling right here on this candle at market, okay, or you can use a break below this candle here on a sell stop.
	233	+|232 |00:43:05,430 ~-~-> 00:43:16,740 |Okay, so if you if you break down here, so be selling on a stop or selling at the market, okay, or using this low here. Okay, because we have a low with a
	234	+|233 |00:43:16,740 ~-~-> 00:43:26,760 |higher low on either side, this is a swing low, we can use this low as a indication to sell on a limit at this price or higher. So, for example, we'll
	235	+|234 |00:43:26,760 ~-~-> 00:43:37,980 |say this is the cable, and this price is 161 50, we could have a limit order to sell at 161 50. And on this candle, right here, once we see this candle close,
	236	+|235 |00:43:37,980 ~-~-> 00:43:48,540 |and this starts to open up here, entering a limit order at 161 50. To sell would fill you on this candle, and then we would expect an anticipate price to break
	237	+|236 |00:43:48,540 ~-~-> 00:43:56,820 |down below this low. And when we see that, that's what you expect to see in market turning points and then you can you look for range expansion to the
	238	+|237 |00:43:56,820 ~-~-> 00:44:09,990 |downside. And then manager stops above the respective storm the highs up here as well. Okay, obviously the same thing applies is reversing it. If we are
	239	+|238 |00:44:09,990 ~-~-> 00:44:17,280 |expecting bullishness in the marketplace, we're going to assume that there's a support level down here. We wait for again, this is a five minute chart, we
	240	+|239 |00:44:17,280 ~-~-> 00:44:27,990 |could see a low with two higher lows on either side of it here and price runs up. Okay, and eventually it starts to come back down again in here. It doesn't
	241	+|240 |00:44:27,990 ~-~-> 00:44:39,420 |have to do this. Okay, you could just use the previous swing here. And if it breaks that, obviously that would be what you're looking for. But you want to be
	242	+|241 |00:44:39,420 ~-~-> 00:44:46,350 |getting in before the expansion takes place you want to be getting in when prices on a tear tart, you're starting to run. You want to be in before that you
	243	+|242 |00:44:46,350 ~-~-> 00:44:53,640 |want to be in the accumulation phase like we have here. This is a consolidation. You want to be in that. Okay. So if we do get opportunity where it comes back
	244	+|243 |00:44:53,640 ~-~-> 00:45:03,210 |and gives you a smaller short term, optimal trade entry in here, that's ideal. Okay, so you can use the swing high here. Buy on a stop above this high here or
	245	+|244 |00:45:03,240 ~-~-> 00:45:12,900 |you can put a limit order at this price or lower. Okay to get in long and then obviously you're using the swing low in 30 pips, 20 pips, whatever your risk
	246	+|245 |00:45:12,900 ~-~-> 00:45:22,380 |manager is going to permit you for the trade to do your, your long setup. And then obviously you anticipate once you get in the move, you anticipate expansion
	247	+|246 |00:45:22,380 ~-~-> 00:45:31,230 |and then when you start seeing these short term swing highs break out, okay, then you have what you expect to see in in your trade and then hopefully, you'll
	248	+|247 |00:45:31,230 ~-~-> 00:45:34,560 |reach for your upper objectives in price for your profit taking
4	4
5		-2
6		-00:01:13,860 ~-~-> 00:01:18,630
7		-approach. Okay. And also, as we've always mentioned before
8		-
9		-3
10		-00:01:18,630 ~-~-> 00:01:22,770
11		-in previous examples of education in my work, everything
12		-
13		-4
14		-00:01:22,770 ~-~-> 00:01:26,040
15		-hinges upon the interest rate market. Okay, whenever you see
16		-
17		-5
18		-00:01:26,040 ~-~-> 00:01:30,390
19		-in the interest rate market, we'll have a driving force in
20		-
21		-6
22		-00:01:30,390 ~-~-> 00:01:34,020
23		-the United States Dollar Index, which is essentially the
24		-
25		-7
26		-00:01:34,530 ~-~-> 00:01:38,850
27		-barometer for corn currency markets if the US dollar is weak
28		-
29		-8
30		-00:01:39,150 ~-~-> 00:01:41,670
31		-at both 12 from bullish foreign currencies, and if the
32		-
33		-9
34		-00:01:41,670 ~-~-> 00:01:46,320
35		-United States dollar is bullish, it bodes poorly for foreign
36		-
37		-10
38		-00:01:46,320 ~-~-> 00:01:50,340
39		-currencies and expect lower prices and sympathy. And
40		-
41		-11
42		-00:01:50,340 ~-~-> 00:01:55,560
43		-obviously, that train of command maintains its impact across
44		-
45		-12
46		-00:01:55,560 ~-~-> 00:01:58,920
47		-all market asset classes that being the stock market, the
48		-
49		-13
50		-00:01:58,920 ~-~-> 00:02:02,760
51		-commodity markets as well. It's not limited to just currency
52		-
53		-14
54		-00:02:02,760 ~-~-> 00:02:07,200
55		-markets. So, obviously what do I mean by it all hinges on
56		-
57		-15
58		-00:02:07,200 ~-~-> 00:02:10,230
59		-the interest rate markets well we watch the 10 year five
60		-
61		-16
62		-00:02:10,230 ~-~-> 00:02:15,390
63		-year two year and 30 year market in the yields. Okay and by
64		-
65		-17
66		-00:02:15,390 ~-~-> 00:02:21,720
67		-looking at the yields, what we look for is generally the
68		-
69		-18
70		-00:02:21,720 ~-~-> 00:02:26,190
71		-yields are moving in tandem. Okay and then this example
72		-
73		-19
74		-00:02:26,190 ~-~-> 00:02:30,840
75		-crudely examples, we're looking at a downward shift in
76		-
77		-20
78		-00:02:30,870 ~-~-> 00:02:34,230
79		-yields. So that would indicate that yields are dropping,
80		-
81		-21
82		-00:02:34,500 ~-~-> 00:02:39,930
83		-that is a risk off scenario. So while risk is off, we are no
84		-
85		-22
86		-00:02:39,930 ~-~-> 00:02:43,170
87		-longer looking for buy signals, we're focusing more on the
88		-
89		-23
90		-00:02:43,170 ~-~-> 00:02:48,600
91		-sell side until we see a divergence in the yields okay. And
92		-
93		-24
94		-00:02:48,600 ~-~-> 00:02:53,130
95		-this could take form in five year it could be in a 10 year.
96		-
97		-25
98		-00:02:54,600 ~-~-> 00:02:56,250
99		-Generally you want to be looking at
100		-
101		-26
102		-00:02:56,670 ~-~-> 00:02:57,420
103		-three
104		-
105		-27
106		-00:02:58,470 ~-~-> 00:03:01,200
107		-yields like for instance, like actually trade the British
108		-
109		-28
110		-00:03:01,200 ~-~-> 00:03:05,580
111		-Pound in the fiber? Well, it's crossed with the US dollar.
112		-
113		-29
114		-00:03:05,580 ~-~-> 00:03:09,990
115		-So, the triad, the yield triad that I use is the US yields
116		-
117		-30
118		-00:03:10,020 ~-~-> 00:03:12,720
119		-the UK yields and the German yield test described here in
120		-
121		-31
122		-00:03:12,720 ~-~-> 00:03:16,050
123		-this again, rather crude example, at some point, and usually
124		-
125		-32
126		-00:03:16,050 ~-~-> 00:03:20,730
127		-between two to three months, couple times a year, there's a
128		-
129		-33
130		-00:03:20,730 ~-~-> 00:03:24,660
131		-shift that takes place in the interest rate market. And its
132		-
133		-34
134		-00:03:24,660 ~-~-> 00:03:29,250
135		-quarterly driven. So at some point, the yields will fail to
136		-
137		-35
138		-00:03:29,250 ~-~-> 00:03:32,310
139		-make comparable lows. Okay, and just think, but more or less
140		-
141		-36
142		-00:03:32,310 ~-~-> 00:03:35,250
143		-depth Dow Theory, because that's what I've applied here is
144		-
145		-37
146		-00:03:35,610 ~-~-> 00:03:38,490
147		-they have to confirm one another. If they don't confirm one
148		-
149		-38
150		-00:03:38,490 ~-~-> 00:03:41,850
151		-another, something's taking place. Fundamentally, I'm not
152		-
153		-39
154		-00:03:41,850 ~-~-> 00:03:44,190
155		-claiming to understand what it is fundamentally that's
156		-
157		-40
158		-00:03:44,190 ~-~-> 00:03:47,550
159		-taking place. I'm just stating that I see it in the chart,
160		-
161		-41
162		-00:03:47,940 ~-~-> 00:03:51,750
163		-following the yields, so one diverges in this example, you
164		-
165		-42
166		-00:03:51,750 ~-~-> 00:03:55,500
167		-see that the UK and the US yields failed to make lower lows
168		-
169		-43
170		-00:03:55,950 ~-~-> 00:03:59,640
171		-while the German yields did, okay, that's generally an
172		-
173		-44
174		-00:03:59,640 ~-~-> 00:04:04,290
175		-indication The German markets are less favored. But yes,
176		-
177		-45
178		-00:04:04,530 ~-~-> 00:04:08,730
179		-they probably will move up in 10 in sympathy. So now we see
180		-
181		-46
182		-00:04:08,730 ~-~-> 00:04:12,270
183		-a shift on their way now as yields are increasing for the
184		-
185		-47
186		-00:04:12,270 ~-~-> 00:04:16,530
187		-next quarter. This generally will be bullish for foreign
188		-
189		-48
190		-00:04:16,530 ~-~-> 00:04:21,330
191		-currencies and or bearish for the US dollar. And this will
192		-
193		-49
194		-00:04:21,330 ~-~-> 00:04:25,020
195		-maintain its impact over the market for a period of time
196		-
197		-50
198		-00:04:25,020 ~-~-> 00:04:29,940
199		-until at some point, the yields will encounter a resistance
200		-
201		-51
202		-00:04:30,060 ~-~-> 00:04:33,630
203		-level of some kind. And that's going to come in the form of
204		-
205		-52
206		-00:04:34,140 ~-~-> 00:04:38,130
207		-one yield failing to make a higher high and or more than one
208		-
209		-53
210		-00:04:38,160 ~-~-> 00:04:41,670
211		-Okay, so what you're doing is you're looking for a shift in
212		-
213		-54
214		-00:04:41,700 ~-~-> 00:04:44,700
215		-the overall trend of the yields, okay, so it's going to tip
216		-
217		-55
218		-00:04:44,700 ~-~-> 00:04:48,300
219		-your hand that something fundamentally is slowing down.
220		-
221		-56
222		-00:04:48,720 ~-~-> 00:04:52,170
223		-There's waning interest in risk and there may be a turn
224		-
225		-57
226		-00:04:52,200 ~-~-> 00:04:54,960
227		-likely done soon. So now you want to be a little bit more
228		-
229		-58
230		-00:04:54,960 ~-~-> 00:04:59,040
231		-cautious in your both buy signals. Because we may see a drop
232		-
233		-59
234		-00:04:59,040 ~-~-> 00:05:02,160
235		-in yields which would be a call scenario and then the dollar
236		-
237		-60
238		-00:05:02,160 ~-~-> 00:05:05,520
239		-should be rallying at this point. Okay, so these are the
240		-
241		-61
242		-00:05:05,520 ~-~-> 00:05:08,550
243		-concepts that you have to apply, beginning with your top
244		-
245		-62
246		-00:05:08,550 ~-~-> 00:05:11,340
247		-down analysis understanding are we in a risk on or risk off
248		-
249		-63
250		-00:05:11,340 ~-~-> 00:05:15,120
251		-scenario overall in the interest rate markets and then once
252		-
253		-64
254		-00:05:15,120 ~-~-> 00:05:19,710
255		-we have that, we can look at a more macro view down to a
256		-
257		-65
258		-00:05:19,710 ~-~-> 00:05:20,400
259		-micro view.
260		-
261		-66
262		-00:05:27,660 ~-~-> 00:05:30,540
263		-We are obviously beginning all of our analysis with the
264		-
265		-67
266		-00:05:30,540 ~-~-> 00:05:34,170
267		-interest rate markets and you don't want to have to expect
268		-
269		-68
270		-00:05:34,170 ~-~-> 00:05:36,720
271		-this to shift every single day okay, you want to be having a
272		-
273		-69
274		-00:05:36,810 ~-~-> 00:05:41,070
275		-higher timeframe macro view on interest rates and monitoring
276		-
277		-70
278		-00:05:41,070 ~-~-> 00:05:44,250
279		-that based on our buy signal? Are we in a buyer program or
280		-
281		-71
282		-00:05:44,250 ~-~-> 00:05:48,000
283		-sell program? Next, obviously, we would be considering the
284		-
285		-72
286		-00:05:48,000 ~-~-> 00:05:50,400
287		-direction of the United States dollar and the technical
288		-
289		-73
290		-00:05:50,400 ~-~-> 00:05:55,080
291		-levels that that indicee is currently being impacted by
292		-
293		-74
294		-00:05:56,460 ~-~-> 00:06:01,500
295		-obviously, it helps to trade with The understanding that's
296		-
297		-75
298		-00:06:01,650 ~-~-> 00:06:05,400
299		-found in the futures market, that being the treasuries in
300		-
301		-76
302		-00:06:05,400 ~-~-> 00:06:09,390
303		-the tea note markets that mean the five year 10 year and 30
304		-
305		-77
306		-00:06:09,390 ~-~-> 00:06:15,360
307		-year treasuries. The stock indices are always a good to
308		-
309		-78
310		-00:06:15,780 ~-~-> 00:06:20,520
311		-watch, I go from interest rates of the US dollar to Treasury
312		-
313		-79
314		-00:06:20,520 ~-~-> 00:06:25,380
315		-markets. And I check out what the overall risk tone is in
316		-
317		-80
318		-00:06:25,380 ~-~-> 00:06:29,070
319		-the stock market are the averages again confirming using Dow
320		-
321		-81
322		-00:06:29,070 ~-~-> 00:06:31,680
323		-Theory, and if they're not, it may be an indication that
324		-
325		-82
326		-00:06:31,680 ~-~-> 00:06:34,770
327		-there may be a short term and or longer term shift taking
328		-
329		-83
330		-00:06:34,770 ~-~-> 00:06:38,790
331		-place in the marketplace. Then I obviously look at the CRB
332		-
333		-84
334		-00:06:38,790 ~-~-> 00:06:42,240
335		-index i try to get a feel for Are we still in a risk on risk
336		-
337		-85
338		-00:06:42,240 ~-~-> 00:06:45,930
339		-off scenario that's confirmed with the commodity markets and
340		-
341		-86
342		-00:06:45,930 ~-~-> 00:06:48,720
343		-if the CRB is bullish, that would indicate that we are in
344		-
345		-87
346		-00:06:48,720 ~-~-> 00:06:52,860
347		-fact risk going and that would be bearish for the dollar and
348		-
349		-88
350		-00:06:52,860 ~-~-> 00:06:56,070
351		-bullish for foreign currencies. And obviously, it always
352		-
353		-89
354		-00:06:56,070 ~-~-> 00:06:59,700
355		-helps to look at a few other select markets like golden
356		-
357		-90
358		-00:07:00,000 ~-~-> 00:07:04,440
359		-Because those are good barometers for risk on risk off as
360		-
361		-91
362		-00:07:04,440 ~-~-> 00:07:04,800
363		-well.
364		-
365		-92
366		-00:07:10,590 ~-~-> 00:07:14,700
367		-For the anticipatory stage, Okay, first stage
368		-
369		-93
370		-00:07:15,660 ~-~-> 00:07:21,060
371		-of analysis is always going to be the anticipatory stage.
372		-
373		-94
374		-00:07:21,210 ~-~-> 00:07:23,490
375		-Okay, you're going to spend more time in this stage of your
376		-
377		-95
378		-00:07:23,490 ~-~-> 00:07:26,730
379		-analysis than any other stage. And it begins with seasonal
380		-
381		-96
382		-00:07:26,730 ~-~-> 00:07:31,500
383		-tendencies. That could be the are we in a bullish quarter or
384		-
385		-97
386		-00:07:31,500 ~-~-> 00:07:35,370
387		-a bearish quarter based on price action? Are we in an area
388		-
389		-98
390		-00:07:35,370 ~-~-> 00:07:38,550
391		-where seasonally we expect prices to rally or decline?
392		-
393		-99
394		-00:07:40,110 ~-~-> 00:07:40,710
395		-That
396		-
397		-100
398		-00:07:42,149 ~-~-> 00:07:44,219
399		-there's a subtle tension it takes place in generally every
400		-
401		-101
402		-00:07:44,219 ~-~-> 00:07:47,789
403		-marketplace there that is tradable. And it's my advice to
404		-
405		-102
406		-00:07:47,789 ~-~-> 00:07:50,219
407		-use that to learn what they are and I'm going to share with
408		-
409		-103
410		-00:07:50,219 ~-~-> 00:07:54,659
411		-you a few of them that are very strong in this. This
412		-
413		-104
414		-00:07:54,659 ~-~-> 00:07:56,759
415		-presentation over the course of this presentation. You're
416		-
417		-105
418		-00:07:56,759 ~-~-> 00:08:00,749
419		-gonna learn more, but you have to have answers. of where we
420		-
421		-106
422		-00:08:00,749 ~-~-> 00:08:06,479
423		-are seasonally. And obviously, you know, while we're looking
424		-
425		-107
426		-00:08:06,479 ~-~-> 00:08:08,789
427		-for seasonal influences in the marketplace, you're always
428		-
429		-108
430		-00:08:08,789 ~-~-> 00:08:12,089
431		-watching that yield SMT Okay, you know, we're looking for
432		-
433		-109
434		-00:08:12,329 ~-~-> 00:08:17,099
435		-the triad to be diverging comparable to the highs and the
436		-
437		-110
438		-00:08:17,099 ~-~-> 00:08:19,169
439		-lows, one's going to fail to make a higher high and that's
440		-
441		-111
442		-00:08:19,169 ~-~-> 00:08:21,149
443		-going to give you an indication that we're probably seeing a
444		-
445		-112
446		-00:08:21,149 ~-~-> 00:08:25,559
447		-shift from risk on risk off and vice versa. Okay, and we
448		-
449		-113
450		-00:08:25,589 ~-~-> 00:08:29,339
451		-always look at correlated pairs that we trade and it's good
452		-
453		-114
454		-00:08:29,339 ~-~-> 00:08:34,229
455		-to be a specialist in market trading because it's not to me
456		-
457		-115
458		-00:08:34,229 ~-~-> 00:08:38,429
459		-it's me it's never been in the advantageous to be a trader
460		-
461		-116
462		-00:08:38,429 ~-~-> 00:08:40,889
463		-in every single every market, okay? Because you can't watch
464		-
465		-117
466		-00:08:40,889 ~-~-> 00:08:43,649
467		-too many things at one time and have really good you know,
468		-
469		-118
470		-00:08:43,739 ~-~-> 00:08:45,839
471		-relationship with the marketplace. If you're spread too
472		-
473		-119
474		-00:08:45,839 ~-~-> 00:08:48,389
475		-thin, obviously, you How are you going to get a fix on
476		-
477		-120
478		-00:08:48,389 ~-~-> 00:08:51,179
479		-what's going on in price. So be a specialist you know, pick
480		-
481		-121
482		-00:08:51,179 ~-~-> 00:08:54,419
483		-one or two bars that closely correlated strongly correlated
484		-
485		-122
486		-00:08:54,719 ~-~-> 00:08:59,249
487		-and inspect is basically trade likes, look at correlate
488		-
489		-123
490		-00:08:59,249 ~-~-> 00:09:04,589
491		-highs and lows. And obviously you and me looking at the
492		-
493		-124
494		-00:09:04,649 ~-~-> 00:09:09,299
495		-stock market and sees NASDAQ Composite Index, the s&p and
496		-
497		-125
498		-00:09:09,299 ~-~-> 00:09:13,529
499		-such. Okay, every week you want to be maintaining a watchful
500		-
501		-126
502		-00:09:13,529 ~-~-> 00:09:17,339
503		-eye on the CBOT and we watch the net traders position. Okay,
504		-
505		-127
506		-00:09:17,339 ~-~-> 00:09:20,159
507		-the overall net position, are they bullish or bearish? And
508		-
509		-128
510		-00:09:20,159 ~-~-> 00:09:24,089
511		-are they lessening or increasing their shorts? That's going
512		-
513		-129
514		-00:09:24,089 ~-~-> 00:09:26,279
515		-to be an indication whether or not the market is in fact,
516		-
517		-130
518		-00:09:26,879 ~-~-> 00:09:29,909
519		-bullish, bearish or if the current market moves have been on
520		-
521		-131
522		-00:09:29,909 ~-~-> 00:09:35,429
523		-their way is in fact legit or if it's not. You always watch
524		-
525		-132
526		-00:09:36,239 ~-~-> 00:09:39,719
527		-the open interest and premiums between the nearby and next
528		-
529		-133
530		-00:09:39,719 ~-~-> 00:09:43,559
531		-month out on your currencies. And you're going to be looking
532		-
533		-134
534		-00:09:43,559 ~-~-> 00:09:47,729
535		-for indications that there may be a strong demand for or
536		-
537		-135
538		-00:09:47,729 ~-~-> 00:09:51,569
539		-waning demand, if there is a premium for that particular
540		-
541		-136
542		-00:09:51,569 ~-~-> 00:09:56,399
543		-market. market sentiment obviously, you know, this could be
544		-
545		-137
546		-00:09:57,749 ~-~-> 00:10:02,849
547		-derived that by using Market vein numbers we can look at
548		-
549		-138
550		-00:10:03,689 ~-~-> 00:10:08,639
551		-some sentiment based on chatter that's going on in the news,
552		-
553		-139
554		-00:10:08,639 ~-~-> 00:10:11,909
555		-the forums, talking heads on TV, if everybody's expecting
556		-
557		-140
558		-00:10:11,909 ~-~-> 00:10:14,399
559		-the same thing generally going to be the other way. And
560		-
561		-141
562		-00:10:14,459 ~-~-> 00:10:18,539
563		-obviously, we always have a watchful eye on key higher time
564		-
565		-142
566		-00:10:18,539 ~-~-> 00:10:22,289
567		-frame support resistance levels. That is the mack daddy of
568		-
569		-143
570		-00:10:22,289 ~-~-> 00:10:24,719
571		-all things that we do in technical analysis, understand our
572		-
573		-144
574		-00:10:24,719 ~-~-> 00:10:31,589
575		-key support resistance levels. Alright, the execution stage
576		-
577		-145
578		-00:10:32,879 ~-~-> 00:10:37,229
579		-before we take any trade before we do any order entry, okay.
580		-
581		-146
582		-00:10:38,099 ~-~-> 00:10:41,399
583		-Once we have a higher timeframe top down analysis done we
584		-
585		-147
586		-00:10:41,399 ~-~-> 00:10:45,569
587		-have an understanding of where we are at in terms of yields
588		-
589		-148
590		-00:10:45,569 ~-~-> 00:10:49,019
591		-and interest rates. Okay, we got to get for the day that you
592		-
593		-149
594		-00:10:49,019 ~-~-> 00:10:52,199
595		-would actually be doing any trading, you still get a market,
596		-
597		-150
598		-00:10:52,529 ~-~-> 00:10:56,219
599		-major market turn or are we still bullish overall going into
600		-
601		-151
602		-00:10:56,219 ~-~-> 00:10:59,999
603		-the new day, and what I mean by that are we risk going on
604		-
605		-152
606		-00:10:59,999 ~-~-> 00:11:03,569
607		-scoff you have to understand this because if you're buying
608		-
609		-153
610		-00:11:03,599 ~-~-> 00:11:07,919
611		-generally in a risk on scenario, that's good. But if you're
612		-
613		-154
614		-00:11:07,919 ~-~-> 00:11:10,559
615		-buying foreign currencies in a risk off scenario, you have
616		-
617		-155
618		-00:11:10,559 ~-~-> 00:11:12,809
619		-the tide moving against you, and it's very, very difficult
620		-
621		-156
622		-00:11:12,809 ~-~-> 00:11:16,049
623		-to make money in that situation. So it pays to understand
624		-
625		-157
626		-00:11:16,079 ~-~-> 00:11:19,619
627		-what it is you're doing every single day and judging what
628		-
629		-158
630		-00:11:19,619 ~-~-> 00:11:23,309
631		-markets doing going into London, are we rejecting highs or
632		-
633		-159
634		-00:11:23,309 ~-~-> 00:11:26,189
635		-rejecting lows, probably pricing in the daily low daily
636		-
637		-160
638		-00:11:26,189 ~-~-> 00:11:30,749
639		-high. You want to be trading in that directional premise.
640		-
641		-161
642		-00:11:31,019 ~-~-> 00:11:33,269
643		-And obviously it goes without saying that if we have a buy
644		-
645		-162
646		-00:11:33,269 ~-~-> 00:11:36,059
647		-or sell for programming, the higher timeframe based on
648		-
649		-163
650		-00:11:36,749 ~-~-> 00:11:40,949
651		-directional premise on monthly, weekly, daily, and four hour
652		-
653		-164
654		-00:11:41,489 ~-~-> 00:11:43,979
655		-and if we're in a bull program by program rather you will be
656		-
657		-165
658		-00:11:43,979 ~-~-> 00:11:50,069
659		-focusing on the buy signals. Obviously, we have to have our
660		-
661		-166
662		-00:11:50,369 ~-~-> 00:11:52,529
663		-macro support resistance levels from the higher time frame
664		-
665		-167
666		-00:11:52,529 ~-~-> 00:11:57,239
667		-monthly, weekly, daily for hour and one hour on our sub 60
668		-
669		-168
670		-00:11:57,239 ~-~-> 00:11:59,999
671		-minute charts. So in other words, our 515 minute charts have
672		-
673		-169
674		-00:11:59,999 ~-~-> 00:12:02,309
675		-To have these higher time frame support resistance levels in
676		-
677		-170
678		-00:12:02,999 ~-~-> 00:12:05,729
679		-the chart, you have to see them, be aware of them, okay?
680		-
681		-171
682		-00:12:05,729 ~-~-> 00:12:07,799
683		-Don't just have them written on a piece of paper, have them
684		-
685		-172
686		-00:12:07,799 ~-~-> 00:12:10,259
687		-on your chart, look at them know where they are, where
688		-
689		-173
690		-00:12:10,259 ~-~-> 00:12:12,539
691		-they're at, you'll get a better feel for prices actually
692		-
693		-174
694		-00:12:12,539 ~-~-> 00:12:13,259
695		-trying to do
696		-
697		-175
698		-00:12:14,820 ~-~-> 00:12:18,900
699		-market structure. Okay, before we execute, we have to
700		-
701		-176
702		-00:12:18,900 ~-~-> 00:12:21,420
703		-understand where are we at. If we're bullish, we're looking
704		-
705		-177
706		-00:12:21,420 ~-~-> 00:12:25,260
707		-for immediate term or long term lows on the left hand side
708		-
709		-178
710		-00:12:25,290 ~-~-> 00:12:27,540
711		-of our chart, okay, so we're going to be looking for short
712		-
713		-179
714		-00:12:27,540 ~-~-> 00:12:31,140
715		-term to me term lows to be keying off of to get ourselves in
716		-
717		-180
718		-00:12:31,140 ~-~-> 00:12:33,870
719		-sync with the higher time frame macro view. Okay, and market
720		-
721		-181
722		-00:12:33,870 ~-~-> 00:12:40,380
723		-structure is a key role in that understanding and execution
724		-
725		-182
726		-00:12:40,410 ~-~-> 00:12:43,470
727		-in your trading. If you're bearish, okay, you want to be
728		-
729		-183
730		-00:12:43,470 ~-~-> 00:12:47,010
731		-seeing out long term or short term high on the left hand
732		-
733		-184
734		-00:12:47,010 ~-~-> 00:12:49,770
735		-side of your chart and where you're trading Now you won't be
736		-
737		-185
738		-00:12:49,770 ~-~-> 00:12:53,670
739		-shooting for enemy term highs or short term highs to be
740		-
741		-186
742		-00:12:53,670 ~-~-> 00:12:56,490
743		-getting short and getting in sync with that overall market
744		-
745		-187
746		-00:12:56,490 ~-~-> 00:13:01,740
747		-structure that is bearish. The market flow Obviously, you
748		-
749		-188
750		-00:13:02,130 ~-~-> 00:13:05,340
751		-have to understand, simply because the market is poised to
752		-
753		-189
754		-00:13:05,340 ~-~-> 00:13:10,470
755		-trade higher, and technically, yields may be moving up and
756		-
757		-190
758		-00:13:10,470 ~-~-> 00:13:14,190
759		-risk own. All those things are in place, you know, support
760		-
761		-191
762		-00:13:14,340 ~-~-> 00:13:19,710
763		-has been traded to. It makes a lot easier trading if we use
764		-
765		-192
766		-00:13:19,740 ~-~-> 00:13:23,670
767		-market flow and a higher timeframe for our daily to make
768		-
769		-193
770		-00:13:23,670 ~-~-> 00:13:24,900
771		-sure that we have the
772		-
773		-194
774		-00:13:25,649 ~-~-> 00:13:26,969
775		-tide in our favor.
776		-
777		-195
778		-00:13:27,210 ~-~-> 00:13:30,360
779		-Okay. And then once it starts moving, it makes trading a lot
780		-
781		-196
782		-00:13:30,360 ~-~-> 00:13:33,540
783		-easier. Okay, so we have a bullish market structure, bullish
784		-
785		-197
786		-00:13:33,540 ~-~-> 00:13:36,360
787		-market flow with a bullish macro view, okay, and we're
788		-
789		-198
790		-00:13:36,360 ~-~-> 00:13:42,060
791		-trading with risk on scenarios in a buy program. Now, simply
792		-
793		-199
794		-00:13:42,060 ~-~-> 00:13:45,540
795		-moving to a simple time and price theory of expecting the
796		-
797		-200
798		-00:13:45,810 ~-~-> 00:13:50,280
799		-low to form during London. Okay, you can expect the Asian
800		-
801		-201
802		-00:13:50,280 ~-~-> 00:13:55,320
803		-range to be a very key role in your order placement. You'd
804		-
805		-202
806		-00:13:55,320 ~-~-> 00:13:57,420
807		-be looking for the Asian range high or less than look for
808		-
809		-203
810		-00:13:57,420 ~-~-> 00:14:00,450
811		-your buy signals and vice versa. If you're acting Back to a
812		-
813		-204
814		-00:14:00,450 ~-~-> 00:14:03,870
815		-risk off scenario, you'd be using the time of day principle
816		-
817		-205
818		-00:14:03,870 ~-~-> 00:14:07,890
819		-of the Asian range low or greater looking for you to swing
820		-
821		-206
822		-00:14:07,980 ~-~-> 00:14:13,710
823		-up and looking for your shorts to be, you know, anywhere in
824		-
825		-207
826		-00:14:13,710 ~-~-> 00:14:17,520
827		-the London open and or the New York open sessions to be
828		-
829		-208
830		-00:14:17,550 ~-~-> 00:14:20,700
831		-keying off of that directional premise in the higher
832		-
833		-209
834		-00:14:20,700 ~-~-> 00:14:24,570
835		-timeframe drilled down through all the steps we just covered
836		-
837		-210
838		-00:14:24,570 ~-~-> 00:14:29,310
839		-here. More detail obviously will be given as we go through
840		-
841		-211
842		-00:14:29,310 ~-~-> 00:14:33,330
843		-actual real top down analysis and real breakdown of a market
844		-
845		-212
846		-00:14:33,630 ~-~-> 00:14:36,420
847		-moved it took place in the spring into summer months of
848		-
849		-213
850		-00:14:36,420 ~-~-> 00:14:40,230
851		-2012. But for now, what we're doing is is we're outlining
852		-
853		-214
854		-00:14:40,230 ~-~-> 00:14:44,250
855		-really the top down approach in a nutshell so that we you
856		-
857		-215
858		-00:14:44,280 ~-~-> 00:14:47,250
859		-going into your charts every day, this is the framework that
860		-
861		-216
862		-00:14:47,250 ~-~-> 00:14:50,610
863		-you should have in your your psyche as a trader, what it is
864		-
865		-217
866		-00:14:50,610 ~-~-> 00:14:53,880
867		-that you're doing every day is that on a daily basis, is it
868		-
869		-218
870		-00:14:53,880 ~-~-> 00:14:56,820
871		-the same thing over and over again, this is my routine. You
872		-
873		-219
874		-00:14:56,820 ~-~-> 00:14:59,040
875		-may tweak it a little bit, you may take some things out of
876		-
877		-220
878		-00:14:59,040 ~-~-> 00:15:01,320
879		-here and move it around. You do something a little bit
880		-
881		-221
882		-00:15:01,320 ~-~-> 00:15:04,170
883		-different in terms of order. But these are essential to me
884		-
885		-222
886		-00:15:04,170 ~-~-> 00:15:07,200
887		-in terms of my concepts, my material, the things that I use
888		-
889		-223
890		-00:15:07,200 ~-~-> 00:15:10,920
891		-when I do my analysis. And then finally, once we understand
892		-
893		-224
894		-00:15:10,920 ~-~-> 00:15:12,510
895		-what we're supposed to be doing based on the higher time
896		-
897		-225
898		-00:15:12,510 ~-~-> 00:15:17,400
899		-frame premise, it goes into your order entries. Okay? And
900		-
901		-226
902		-00:15:17,430 ~-~-> 00:15:20,370
903		-90% of the time, I'm using limit orders to get in and get
904		-
905		-227
906		-00:15:20,370 ~-~-> 00:15:26,490
907		-out and stop orders for protection. And unless I'm trading a
908		-
909		-228
910		-00:15:26,490 ~-~-> 00:15:31,230
911		-breakout, and I want to be buying strength or selling
912		-
913		-229
914		-00:15:31,230 ~-~-> 00:15:34,440
915		-weakness, okay, that's the only time I'm using a stop, and
916		-
917		-230
918		-00:15:34,440 ~-~-> 00:15:36,960
919		-it's 10% of the time. So what does that tell you? 90% of the
920		-
921		-231
922		-00:15:36,960 ~-~-> 00:15:39,960
923		-time, I'm not trading breakouts. Okay, I'm actually feeding
924		-
925		-232
926		-00:15:39,960 ~-~-> 00:15:43,830
927		-the market moves, trade entry orders. We're going to talk
928		-
929		-233
930		-00:15:43,830 ~-~-> 00:15:46,320
931		-about that in the last module, because we're gonna actually
932		-
933		-234
934		-00:15:46,320 ~-~-> 00:15:50,370
935		-give you specific orders and specific examples on how to use
936		-
937		-235
938		-00:15:50,370 ~-~-> 00:15:55,860
939		-these orders for actual demo trading counts. So you can you
940		-
941		-236
942		-00:15:55,860 ~-~-> 00:15:59,340
943		-can practice in the sandbox and see whether or not these
944		-
945		-237
946		-00:15:59,340 ~-~-> 00:16:07,740
947		-things work. For you going forward. Alright, the reactionary
948		-
949		-238
950		-00:16:07,740 ~-~-> 00:16:12,210
951		-stage right there. Basically there's times the market where
952		-
953		-239
954		-00:16:12,540 ~-~-> 00:16:16,920
955		-if you're in the trade, okay, and you have little to no
956		-
957		-240
958		-00:16:16,920 ~-~-> 00:16:21,150
959		-movement at all, you've anticipated a market move and price
960		-
961		-241
962		-00:16:21,150 ~-~-> 00:16:24,900
963		-does go stagnant. It is nowhere just starts going sideways.
964		-
965		-242
966		-00:16:24,990 ~-~-> 00:16:29,580
967		-Okay? That's a time for you to more or less killed the
968		-
969		-243
970		-00:16:29,580 ~-~-> 00:16:33,600
971		-trade, especially if you're expecting a price move and we're
972		-
973		-244
974		-00:16:33,600 ~-~-> 00:16:37,860
975		-moving into a specific time of day where volatility should
976		-
977		-245
978		-00:16:37,860 ~-~-> 00:16:41,700
979		-be increasing, but it isn't. Okay, it's just better just to
980		-
981		-246
982		-00:16:41,700 ~-~-> 00:16:47,190
983		-close the trade. Do not expect your success to be hinged
984		-
985		-247
986		-00:16:47,190 ~-~-> 00:16:51,660
987		-upon one single event, one single trading day. Okay. And I
988		-
989		-248
990		-00:16:51,660 ~-~-> 00:16:55,590
991		-think if you really take a look at your heaviest losses,
992		-
993		-249
994		-00:16:55,620 ~-~-> 00:16:58,920
995		-look at your biggest losing days, okay, or your string of
996		-
997		-250
998		-00:16:58,920 ~-~-> 00:17:03,870
999		-losing days. I guarantee if you go back the mindset you had
1000		-
1001		-251
1002		-00:17:03,870 ~-~-> 00:17:07,860
1003		-going into that trade is that you are expecting and hoping
1004		-
1005		-252
1006		-00:17:07,860 ~-~-> 00:17:11,820
1007		-and praying that this move is the winner. This is going to
1008		-
1009		-253
1010		-00:17:11,820 ~-~-> 00:17:13,920
1011		-be the one that puts you over the top or get you back to
1012		-
1013		-254
1014		-00:17:13,950 ~-~-> 00:17:20,040
1015		-even. Okay. Don't Don't think like that. Okay? demand the
1016		-
1017		-255
1018		-00:17:20,040 ~-~-> 00:17:24,750
1019		-tools to place you in optimal trade entry. If it doesn't
1020		-
1021		-256
1022		-00:17:24,750 ~-~-> 00:17:28,320
1023		-provide you that and you don't see a very short term near
1024		-
1025		-257
1026		-00:17:28,320 ~-~-> 00:17:32,670
1027		-term feedback in your trade. In other words, are you seeing
1028		-
1029		-258
1030		-00:17:32,670 ~-~-> 00:17:35,190
1031		-the things that you're expecting in terms of volatility? Are
1032		-
1033		-259
1034		-00:17:35,190 ~-~-> 00:17:37,410
1035		-you seeing a rejection at the lows that you were buying
1036		-
1037		-260
1038		-00:17:37,410 ~-~-> 00:17:39,960
1039		-into? Are you seeing are you seeing follow through the
1040		-
1041		-261
1042		-00:17:39,960 ~-~-> 00:17:42,870
1043		-upside after you bought that long? If you're not seeing that
1044		-
1045		-262
1046		-00:17:42,870 ~-~-> 00:17:44,940
1047		-and it's going stagnant and you're getting close to the end
1048		-
1049		-263
1050		-00:17:44,940 ~-~-> 00:17:47,670
1051		-of the day going into London close or if you're going into
1052		-
1053		-264
1054		-00:17:47,670 ~-~-> 00:17:51,780
1055		-New York open, okay, and prices are stagnant. It may
1056		-
1057		-265
1058		-00:17:51,780 ~-~-> 00:17:55,320
1059		-actually bounce up against you. If you're, if you're short.
1060		-
1061		-266
1062		-00:17:55,800 ~-~-> 00:17:57,660
1063		-Or if you're if you're long it may actually pull back
1064		-
1065		-267
1066		-00:17:57,660 ~-~-> 00:18:01,200
1067		-against your could just go into longer term. consolidation.
1068		-
1069		-268
1070		-00:18:01,590 ~-~-> 00:18:05,670
1071		-Why sit in? Okay, if it's showing you failure to move,
1072		-
1073		-269
1074		-00:18:06,360 ~-~-> 00:18:09,180
1075		-that's your time to react kill the trade. There's no risk
1076		-
1077		-270
1078		-00:18:09,180 ~-~-> 00:18:12,660
1079		-now. Okay? If it runs off if you would have stayed in made
1080		-
1081		-271
1082		-00:18:12,660 ~-~-> 00:18:17,610
1083		-money, big deal, let it go. Okay. But we act quickly when
1084		-
1085		-272
1086		-00:18:17,610 ~-~-> 00:18:22,560
1087		-trying to preserve our capital. We act slowly when we're
1088		-
1089		-273
1090		-00:18:22,560 ~-~-> 00:18:23,670
1091		-trying to make money.
1092		-
1093		-274
1094		-00:18:23,700 ~-~-> 00:18:26,850
1095		-Okay, we want to be methodical. We want to be very, very
1096		-
1097		-275
1098		-00:18:26,850 ~-~-> 00:18:31,770
1099		-focused. Okay and detail oriented. When it comes to exposing
1100		-
1101		-276
1102		-00:18:31,770 ~-~-> 00:18:36,180
1103		-our money to risk. We want to really put it to work when
1104		-
1105		-277
1106		-00:18:36,180 ~-~-> 00:18:39,390
1107		-there's something highly probable in our favorite to take
1108		-
1109		-278
1110		-00:18:39,390 ~-~-> 00:18:44,310
1111		-advantage of why risk on very low odd setups.
1112		-
1113		-279
1114		-00:18:45,150 ~-~-> 00:18:47,430
1115		-There's no reason to you there's enough of them happening in
1116		-
1117		-280
1118		-00:18:47,430 ~-~-> 00:18:49,470
1119		-a week. There's enough of them happening in a month in over
1120		-
1121		-281
1122		-00:18:49,470 ~-~-> 00:18:51,450
1123		-a year Good grief. You have tons and tons of opportunity to
1124		-
1125		-282
1126		-00:18:51,450 ~-~-> 00:18:55,320
1127		-make money. Don't sit in questionable trades. If it's not
1128		-
1129		-283
1130		-00:18:55,320 ~-~-> 00:18:59,460
1131		-moving for you kill the trade. Take another setup. If you
1132		-
1133		-284
1134		-00:18:59,460 ~-~-> 00:19:02,460
1135		-see rejection, A key support level that's counter your
1136		-
1137		-285
1138		-00:19:02,460 ~-~-> 00:19:05,940
1139		-expectation or you're injured and you're in the trade. Kill
1140		-
1141		-286
1142		-00:19:05,940 ~-~-> 00:19:10,920
1143		-it, why eat up open profits, okay? Turn your paper profits
1144		-
1145		-287
1146		-00:19:10,920 ~-~-> 00:19:14,400
1147		-into literal profits, go to cash, move to the sidelines,
1148		-
1149		-288
1150		-00:19:14,400 ~-~-> 00:19:17,430
1151		-take your profits and get out. Okay? If you see rejection,
1152		-
1153		-289
1154		-00:19:17,430 ~-~-> 00:19:20,880
1155		-strong rejection, something comes across, you know, the
1156		-
1157		-290
1158		-00:19:20,880 ~-~-> 00:19:25,500
1159		-wires and hits, you know, unexpectedly, which, you know, in
1160		-
1161		-291
1162		-00:19:25,500 ~-~-> 00:19:28,740
1163		-the event that, you know, major catastrophe or global
1164		-
1165		-292
1166		-00:19:28,740 ~-~-> 00:19:32,100
1167		-national event, something of that nature, you know, that
1168		-
1169		-293
1170		-00:19:32,100 ~-~-> 00:19:34,230
1171		-could rock the markets, you never really know when that's
1172		-
1173		-294
1174		-00:19:34,230 ~-~-> 00:19:37,440
1175		-going to happen. So if you see that it's just better to
1176		-
1177		-295
1178		-00:19:37,440 ~-~-> 00:19:40,530
1179		-collapse the trade and just get out. You could always get
1180		-
1181		-296
1182		-00:19:40,530 ~-~-> 00:19:44,340
1183		-back in, always get back in even for those folks that are in
1184		-
1185		-297
1186		-00:19:44,340 ~-~-> 00:19:48,240
1187		-carry trades. Okay, you can get back in those moves. Okay.
1188		-
1189		-298
1190		-00:19:48,240 ~-~-> 00:19:52,260
1191		-And look what happened in Japan. If, you know, the
1192		-
1193		-299
1194		-00:19:52,260 ~-~-> 00:19:56,760
1195		-earthquake hit New tsunami took out you, reactors and the
1196		-
1197		-300
1198		-00:19:56,760 ~-~-> 00:20:00,090
1199		-whole world's waiting for you in Japan. You slip into The
1200		-
1201		-301
1202		-00:20:00,090 ~-~-> 00:20:04,530
1203		-ocean in dissolve those things, we can't expect them in
1204		-
1205		-302
1206		-00:20:04,530 ~-~-> 00:20:07,830
1207		-their acts of God. So we have to, more or less just take
1208		-
1209		-303
1210		-00:20:07,830 ~-~-> 00:20:11,550
1211		-ourselves out of out of the risk environment, okay in stand
1212		-
1213		-304
1214		-00:20:11,550 ~-~-> 00:20:14,610
1215		-on the sidelines where it's no more risk, okay? And we can,
1216		-
1217		-305
1218		-00:20:14,970 ~-~-> 00:20:17,790
1219		-you know, hopefully gain a more objective view of the
1220		-
1221		-306
1222		-00:20:17,790 ~-~-> 00:20:21,480
1223		-marketplace and then react object new with objective
1224		-
1225		-307
1226		-00:20:21,480 ~-~-> 00:20:25,350
1227		-analysis not you know, reactionary gambling and trying to
1228		-
1229		-308
1230		-00:20:25,350 ~-~-> 00:20:29,100
1231		-get in there and throw the dice and chase the market chasing
1232		-
1233		-309
1234		-00:20:29,310 ~-~-> 00:20:32,190
1235		-you mentality. That's not that's not how we make money,
1236		-
1237		-310
1238		-00:20:32,220 ~-~-> 00:20:35,670
1239		-okay? You want to react by getting out and take yourself out
1240		-
1241		-311
1242		-00:20:35,670 ~-~-> 00:20:39,180
1243		-of the risk. And obviously, if you're sick, and if you have
1244		-
1245		-312
1246		-00:20:39,180 ~-~-> 00:20:41,910
1247		-a life, you know, event that takes place and requires your
1248		-
1249		-313
1250		-00:20:41,910 ~-~-> 00:20:44,880
1251		-time, your kid might have something that you know, requires
1252		-
1253		-314
1254		-00:20:44,880 ~-~-> 00:20:48,120
1255		-you as a parent, where your spouse needs you to do something
1256		-
1257		-315
1258		-00:20:48,120 ~-~-> 00:20:51,450
1259		-with them. You What takes precedence is your relationship in
1260		-
1261		-316
1262		-00:20:51,450 ~-~-> 00:20:54,720
1263		-the real world or the charts. Okay? Hopefully, you know, I
1264		-
1265		-317
1266		-00:20:54,720 ~-~-> 00:20:56,670
1267		-appreciate you guys wanting to spend time with me in these
1268		-
1269		-318
1270		-00:20:56,670 ~-~-> 00:21:00,180
1271		-video modules, but I certainly enjoy it but I enjoy My
1272		-
1273		-319
1274		-00:21:00,180 ~-~-> 00:21:03,000
1275		-family more and you know if it's going to be a choice
1276		-
1277		-320
1278		-00:21:03,000 ~-~-> 00:21:06,060
1279		-whether if it's you and YouTube and baby pips, it's going to
1280		-
1281		-321
1282		-00:21:06,060 ~-~-> 00:21:09,420
1283		-be my family. Okay? So if something takes place that
1284		-
1285		-322
1286		-00:21:09,420 ~-~-> 00:21:13,800
1287		-requires me and my time or if I get sick you got to react
1288		-
1289		-323
1290		-00:21:13,800 ~-~-> 00:21:16,860
1291		-and if you're in a trade and you just think that you're not
1292		-
1293		-324
1294		-00:21:16,860 ~-~-> 00:21:20,940
1295		-going to be able to adequately managed to position react
1296		-
1297		-325
1298		-00:21:21,120 ~-~-> 00:21:24,900
1299		-react responsibly and just collapse the trade and or tighten
1300		-
1301		-326
1302		-00:21:24,900 ~-~-> 00:21:28,500
1303		-up the stop loss so that way if you do fall, ill or you fall
1304		-
1305		-327
1306		-00:21:29,070 ~-~-> 00:21:32,340
1307		-disconnected to the marketplace because of life events that
1308		-
1309		-328
1310		-00:21:32,430 ~-~-> 00:21:34,200
1311		-need to take place maybe there's a death in your family.
1312		-
1313		-329
1314		-00:21:34,800 ~-~-> 00:21:36,660
1315		-You're gonna be able to think objective Lee during that.
1316		-
1317		-330
1318		-00:21:37,500 ~-~-> 00:21:42,480
1319		-Okay, grief can have a major impact on a trader psyche, and
1320		-
1321		-331
1322		-00:21:42,570 ~-~-> 00:21:45,180
1323		-it's just better to just more or less, remove yourself from
1324		-
1325		-332
1326		-00:21:45,180 ~-~-> 00:21:47,280
1327		-the risk. Okay, and you can always get back in.
1328		-
1329		-333
1330		-00:21:52,710 ~-~-> 00:21:57,090
1331		-Alright guys, fractal analysis in price action. All right,
1332		-
1333		-334
1334		-00:21:57,090 ~-~-> 00:22:04,260
1335		-what's a fractal? Well a fractal is A pattern in nature and
1336		-
1337		-335
1338		-00:22:04,260 ~-~-> 00:22:11,400
1339		-in many things that you know, as a as a Christian, okay. I
1340		-
1341		-336
1342		-00:22:11,400 ~-~-> 00:22:16,080
1343		-believe there is a creator. Okay. And I give thanks to him
1344		-
1345		-337
1346		-00:22:16,140 ~-~-> 00:22:19,440
1347		-on a daily basis for the insights that I've been blessed
1348		-
1349		-338
1350		-00:22:19,440 ~-~-> 00:22:25,680
1351		-with. And I share with you and I think that the fractals are
1352		-
1353		-339
1354		-00:22:26,010 ~-~-> 00:22:30,840
1355		-one little signature on his part. also need to show there's
1356		-
1357		-340
1358		-00:22:30,870 ~-~-> 00:22:34,110
1359		-so there's a design to this, okay, everything around this
1360		-
1361		-341
1362		-00:22:34,290 ~-~-> 00:22:39,990
1363		-has a specific design. Okay, there it shows intelligence
1364		-
1365		-342
1366		-00:22:40,020 ~-~-> 00:22:45,180
1367		-behind it. And everything in nature has the same phenomenon.
1368		-
1369		-343
1370		-00:22:45,180 ~-~-> 00:22:52,320
1371		-It's much like Fibonacci. But a fractal is defined simply as
1372		-
1373		-344
1374		-00:22:52,350 ~-~-> 00:22:59,460
1375		-a pattern that is repeated in infinite size up and down. In
1376		-
1377		-345
1378		-00:22:59,460 ~-~-> 00:23:02,670
1379		-other words, Something that you see on one scale. Okay, if
1380		-
1381		-346
1382		-00:23:02,670 ~-~-> 00:23:06,360
1383		-you scale into it and zoom in, you can see it same pattern
1384		-
1385		-347
1386		-00:23:06,750 ~-~-> 00:23:11,310
1387		-repeated on lower levels. And obviously the same thing if
1388		-
1389		-348
1390		-00:23:11,310 ~-~-> 00:23:16,320
1391		-you magnify it out and look at it as a macro view. Well,
1392		-
1393		-349
1394		-00:23:16,320 ~-~-> 00:23:20,790
1395		-that same principle is an effect in price. Okay and price
1396		-
1397		-350
1398		-00:23:20,790 ~-~-> 00:23:26,820
1399		-because I'll give you a real generic way of viewing it. When
1400		-
1401		-351
1402		-00:23:26,820 ~-~-> 00:23:32,430
1403		-I say price. Okay, what comes to mind to you? Is it a daily
1404		-
1405		-352
1406		-00:23:32,430 ~-~-> 00:23:37,410
1407		-chart? Is it a one minute chart? Is it a tick chart? For
1408		-
1409		-353
1410		-00:23:37,410 ~-~-> 00:23:39,840
1411		-some of you have may have been a weekly chart, or it could
1412		-
1413		-354
1414		-00:23:39,840 ~-~-> 00:23:44,490
1415		-have been a five minute chart. It doesn't matter what time
1416		-
1417		-355
1418		-00:23:44,490 ~-~-> 00:23:48,270
1419		-frame that we are referring to. It's always just the last
1420		-
1421		-356
1422		-00:23:48,270 ~-~-> 00:23:48,780
1423		-price.
1424		-
1425		-357
1426		-00:23:49,890 ~-~-> 00:23:50,610
1427		-Think about that.
1428		-
1429		-358
1430		-00:23:51,360 ~-~-> 00:23:56,520
1431		-You're looking at price right now. At the time of this
1432		-
1433		-359
1434		-00:23:56,520 ~-~-> 00:24:03,450
1435		-recording the cables trading at 161 70 For that 164 by
1436		-
1437		-360
1438		-00:24:03,450 ~-~-> 00:24:07,230
1439		-itself absolutely is useless to you, unless you have a
1440		-
1441		-361
1442		-00:24:07,590 ~-~-> 00:24:11,520
1443		-understanding where you're at in terms of the big picture.
1444		-
1445		-362
1446		-00:24:11,910 ~-~-> 00:24:15,180
1447		-Okay, by having the big picture. And using a higher
1448		-
1449		-363
1450		-00:24:15,180 ~-~-> 00:24:18,060
1451		-timeframe, perspective in your analysis and understanding
1452		-
1453		-364
1454		-00:24:18,060 ~-~-> 00:24:21,150
1455		-key support resistance levels, you can go into the
1456		-
1457		-365
1458		-00:24:21,150 ~-~-> 00:24:25,470
1459		-marketplace and see patterns that repeat over and over and
1460		-
1461		-366
1462		-00:24:25,470 ~-~-> 00:24:28,620
1463		-over again. There's specific fractal patterns. And I'm not
1464		-
1465		-367
1466		-00:24:28,620 ~-~-> 00:24:31,140
1467		-going to reveal them all in this module, but you'll have a
1468		-
1469		-368
1470		-00:24:31,140 ~-~-> 00:24:33,630
1471		-few of them shared throughout the presentation over the last
1472		-
1473		-369
1474		-00:24:33,660 ~-~-> 00:24:39,630
1475		-few parts of the series. But the the fractal analysis
1476		-
1477		-370
1478		-00:24:39,660 ~-~-> 00:24:43,110
1479		-concept can be applied to the simple optimal trade entry.
1480		-
1481		-371
1482		-00:24:43,590 ~-~-> 00:24:48,630
1483		-Okay. What does that mean? How do we how do we go into the
1484		-
1485		-372
1486		-00:24:48,630 ~-~-> 00:24:51,510
1487		-marketplace looking for a fractal? What is it okay, it's one
1488		-
1489		-373
1490		-00:24:51,510 ~-~-> 00:24:54,360
1491		-thing that you, myself and other folks to understand
1492		-
1493		-374
1494		-00:24:54,360 ~-~-> 00:24:56,850
1495		-practical analysis. We can go and show you a chart in
1496		-
1497		-375
1498		-00:24:56,850 ~-~-> 00:24:58,890
1499		-hindsight I look this is where this did that. This is where
1500		-
1501		-376
1502		-00:24:59,250 ~-~-> 00:25:03,270
1503		-it that's Great, okay, but without a firm understanding of
1504		-
1505		-377
1506		-00:25:03,300 ~-~-> 00:25:06,450
1507		-what a fractal is and what it looks like and how it's
1508		-
1509		-378
1510		-00:25:06,450 ~-~-> 00:25:09,390
1511		-applied to the marketplace, it's not going to do anybody any
1512		-
1513		-379
1514		-00:25:09,390 ~-~-> 00:25:11,670
1515		-good. Okay, so this section is really just going to
1516		-
1517		-380
1518		-00:25:11,670 ~-~-> 00:25:16,530
1519		-highlight an example of one form of a fractal. Okay. And
1520		-
1521		-381
1522		-00:25:16,560 ~-~-> 00:25:19,800
1523		-there's all types of fractals. There's many different kinds
1524		-
1525		-382
1526		-00:25:19,800 ~-~-> 00:25:24,840
1527		-of fractals in terms of price action. But the main thing is,
1528		-
1529		-383
1530		-00:25:24,840 ~-~-> 00:25:28,200
1531		-is if you can't understand what a fractal is on a higher
1532		-
1533		-384
1534		-00:25:28,200 ~-~-> 00:25:32,820
1535		-time frame premise, okay? It's going to mean little to no
1536		-
1537		-385
1538		-00:25:32,820 ~-~-> 00:25:35,730
1539		-good use to you, if you're trying to apply it to intraday
1540		-
1541		-386
1542		-00:25:35,730 ~-~-> 00:25:39,270
1543		-charts. Okay, so what am I, what am I saying here? Okay,
1544		-
1545		-387
1546		-00:25:39,270 ~-~-> 00:25:42,900
1547		-well, in this example, we're going to talk about a fractal
1548		-
1549		-388
1550		-00:25:42,930 ~-~-> 00:25:47,370
1551		-okay? And this is going to give you a price swing, and we're
1552		-
1553		-389
1554		-00:25:47,370 ~-~-> 00:25:50,490
1555		-going to more or less break it down and show you more
1556		-
1557		-390
1558		-00:25:50,490 ~-~-> 00:25:54,720
1559		-insights on how price in itself works within a fractal
1560		-
1561		-391
1562		-00:25:54,780 ~-~-> 00:26:00,000
1563		-nature. Alright, we're looking at it could be any price any
1564		-
1565		-392
1566		-00:26:00,000 ~-~-> 00:26:03,690
1567		-commodity any stock, it could be anything. But for now we're
1568		-
1569		-393
1570		-00:26:03,690 ~-~-> 00:26:10,170
1571		-just gonna talk about this being a currency pair. Okay. So
1572		-
1573		-394
1574		-00:26:10,170 ~-~-> 00:26:13,710
1575		-price is trading within a specific range. Okay. And we
1576		-
1577		-395
1578		-00:26:13,710 ~-~-> 00:26:17,310
1579		-noticed that above where prices currently, this is a key
1580		-
1581		-396
1582		-00:26:17,340 ~-~-> 00:26:21,300
1583		-resistance level, okay. One would expect if we're this close
1584		-
1585		-397
1586		-00:26:21,300 ~-~-> 00:26:25,410
1587		-to it, price would eventually try to run up to that key
1588		-
1589		-398
1590		-00:26:25,410 ~-~-> 00:26:29,460
1591		-resistance level. Now as price runs higher and approaches
1592		-
1593		-399
1594		-00:26:29,460 ~-~-> 00:26:32,760
1595		-that resistance level, at some point, it will hit that
1596		-
1597		-400
1598		-00:26:32,760 ~-~-> 00:26:37,500
1599		-level. We as traders and technical traders, we would expect
1600		-
1601		-401
1602		-00:26:37,500 ~-~-> 00:26:40,950
1603		-reasonably there would be a pullback or a bounce away from
1604		-
1605		-402
1606		-00:26:41,130 ~-~-> 00:26:46,230
1607		-that particular price level. At some point price will come
1608		-
1609		-403
1610		-00:26:46,230 ~-~-> 00:26:50,400
1611		-down in that retracement, okay and swing low, make a small
1612		-
1613		-404
1614		-00:26:50,400 ~-~-> 00:26:53,790
1615		-little short term low. When that takes place, we now have a
1616		-
1617		-405
1618		-00:26:53,790 ~-~-> 00:26:59,040
1619		-new reference point for short term support. Okay, now
1620		-
1621		-406
1622		-00:26:59,520 ~-~-> 00:27:02,640
1623		-obviously If we have short term support here, and a key
1624		-
1625		-407
1626		-00:27:02,640 ~-~-> 00:27:06,420
1627		-resistance level like that, a technical trader like we are
1628		-
1629		-408
1630		-00:27:06,480 ~-~-> 00:27:10,350
1631		-or aspiring to be, when prices starting to bounce, again, on
1632		-
1633		-409
1634		-00:27:10,350 ~-~-> 00:27:13,920
1635		-a short term basis, we could reasonably expect or anticipate
1636		-
1637		-410
1638		-00:27:14,340 ~-~-> 00:27:18,720
1639		-another retest or run attempt to get back to that resistance
1640		-
1641		-411
1642		-00:27:18,720 ~-~-> 00:27:23,220
1643		-level. Okay? At some point, it may get up here and blow
1644		-
1645		-412
1646		-00:27:23,220 ~-~-> 00:27:27,240
1647		-through it, but many times it will fail to do that. Okay,
1648		-
1649		-413
1650		-00:27:27,240 ~-~-> 00:27:30,090
1651		-and then start to come back down again. Now, here's where if
1652		-
1653		-414
1654		-00:27:30,090 ~-~-> 00:27:33,450
1655		-you understand optimal trade entry, in which is basically 60
1656		-
1657		-415
1658		-00:27:33,450 ~-~-> 00:27:40,230
1659		-to 70% trace level on the price swing. If you see this, this
1660		-
1661		-416
1662		-00:27:40,230 ~-~-> 00:27:44,130
1663		-could load you into believing that this could be perhaps a
1664		-
1665		-417
1666		-00:27:44,130 ~-~-> 00:27:50,340
1667		-bull flag. It could be perhaps another ABCD price extension,
1668		-
1669		-418
1670		-00:27:51,060 ~-~-> 00:27:51,480
1671		-okay,
1672		-
1673		-419
1674		-00:27:51,749 ~-~-> 00:27:52,829
1675		-or it could be
1676		-
1677		-420
1678		-00:27:54,120 ~-~-> 00:27:54,750
1679		-a top
1680		-
1681		-421
1682		-00:27:55,920 ~-~-> 00:27:58,620
1683		-Okay, we have to go back to the higher time frame,
1684		-
1685		-422
1686		-00:27:58,950 ~-~-> 00:28:04,110
1687		-resistance level. That takes precedence. That is the one
1688		-
1689		-423
1690		-00:28:04,110 ~-~-> 00:28:07,920
1691		-that we have more emphasis behind, not the short term little
1692		-
1693		-424
1694		-00:28:07,920 ~-~-> 00:28:12,240
1695		-blips in the marketplace, okay. We expect sellers to be
1696		-
1697		-425
1698		-00:28:12,330 ~-~-> 00:28:17,820
1699		-heavier in market than buyers. Okay? And we anticipate price
1700		-
1701		-426
1702		-00:28:18,090 ~-~-> 00:28:22,230
1703		-to break below the low here. Okay? If we see that break
1704		-
1705		-427
1706		-00:28:22,230 ~-~-> 00:28:27,270
1707		-below, okay, that's going to give us a shift in what market
1708		-
1709		-428
1710		-00:28:27,270 ~-~-> 00:28:32,250
1711		-flow and market structure. We're looking at a market that's
1712		-
1713		-429
1714		-00:28:32,250 ~-~-> 00:28:33,180
1715		-breaking down
1716		-
1717		-430
1718		-00:28:33,809 ~-~-> 00:28:34,319
1719		-if
1720		-
1721		-431
1722		-00:28:34,769 ~-~-> 00:28:40,169
1723		-this low is taken out. Now, if price does break down lower
1724		-
1725		-432
1726		-00:28:41,909 ~-~-> 00:28:45,209
1727		-and breaks through that now we are confirmed, we have a
1728		-
1729		-433
1730		-00:28:45,209 ~-~-> 00:28:50,999
1731		-bearish market flow and a early market structure reversal.
1732		-
1733		-434
1734		-00:28:51,839 ~-~-> 00:28:56,699
1735		-Okay, so now, we could reasonably expect this higher
1736		-
1737		-435
1738		-00:28:56,699 ~-~-> 00:29:01,199
1739		-timeframe optimal trade entry. Okay. That would be the
1740		-
1741		-436
1742		-00:29:01,199 ~-~-> 00:29:05,279
1743		-higher timeframe turning point. And now we can look for
1744		-
1745		-437
1746		-00:29:05,309 ~-~-> 00:29:11,129
1747		-continued sell signals okay. So we see here a very standard
1748		-
1749		-438
1750		-00:29:11,129 ~-~-> 00:29:16,289
1751		-optimal trade entry top formation the market broke down
1752		-
1753		-439
1754		-00:29:16,739 ~-~-> 00:29:20,999
1755		-okay. In itself this is a fractal okay look at this pattern
1756		-
1757		-440
1758		-00:29:20,999 ~-~-> 00:29:26,879
1759		-right here. This in itself is a pattern that is applicable
1760		-
1761		-441
1762		-00:29:26,909 ~-~-> 00:29:33,689
1763		-in fractal analysis as price breaks down and moves further
1764		-
1765		-442
1766		-00:29:33,689 ~-~-> 00:29:38,669
1767		-lower Okay, go back to the concepts we just learned in part
1768		-
1769		-443
1770		-00:29:38,669 ~-~-> 00:29:41,909
1771		-two of the trading plan development series. Range
1772		-
1773		-444
1774		-00:29:41,909 ~-~-> 00:29:47,849
1775		-contraction, range expansion and trading range to trend
1776		-
1777		-445
1778		-00:29:47,939 ~-~-> 00:29:50,999
1779		-trading rings the trend okay so consolidation
1780		-
1781		-446
1782		-00:29:51,900 ~-~-> 00:29:52,620
1783		-to trend
1784		-
1785		-447
1786		-00:29:53,340 ~-~-> 00:29:57,900
1787		-consolidation to trend in this region here even though we
1788		-
1789		-448
1790		-00:29:57,900 ~-~-> 00:30:01,800
1791		-saw price movement Up, Down Up down to make the optimal
1792		-
1793		-449
1794		-00:30:01,800 ~-~-> 00:30:06,570
1795		-trade entry formation here. That's still a consolidation.
1796		-
1797		-450
1798		-00:30:07,680 ~-~-> 00:30:08,790
1799		-See the range here?
1800		-
1801		-451
1802		-00:30:10,530 ~-~-> 00:30:11,730
1803		-That's a consolidation.
1804		-
1805		-452
1806		-00:30:12,660 ~-~-> 00:30:19,380
1807		-This move here is the trend, okay, or the price swing out of
1808		-
1809		-453
1810		-00:30:19,380 ~-~-> 00:30:23,550
1811		-consolidation. So now, when price breaks down like this,
1812		-
1813		-454
1814		-00:30:23,700 ~-~-> 00:30:27,870
1815		-what do we as technical traders expect to see another
1816		-
1817		-455
1818		-00:30:27,870 ~-~-> 00:30:30,540
1819		-consolidation. So what's going to take place in the
1820		-
1821		-456
1822		-00:30:30,540 ~-~-> 00:30:35,040
1823		-consolidation is going to be a bounce. It could trade up to
1824		-
1825		-457
1826		-00:30:35,040 ~-~-> 00:30:38,700
1827		-another resistance level, okay, which would be old support
1828		-
1829		-458
1830		-00:30:40,710 ~-~-> 00:30:44,280
1831		-and price will eventually trade back into a consolidation.
1832		-
1833		-459
1834		-00:30:44,790 ~-~-> 00:30:48,720
1835		-Okay, and we can now look for inside this consolidation,
1836		-
1837		-460
1838		-00:30:48,960 ~-~-> 00:30:53,550
1839		-smaller short term, optimal trade entry tops.
1840		-
1841		-461
1842		-00:30:55,260 ~-~-> 00:30:55,980
1843		-Thank you.
1844		-
1845		-462
1846		-00:30:56,550 ~-~-> 00:30:59,610
1847		-We have a higher time frame price leg that's already turned
1848		-
1849		-463
1850		-00:30:59,610 ~-~-> 00:31:04,830
1851		-on 100 timeframe key support and resistance level. As price
1852		-
1853		-464
1854		-00:31:04,830 ~-~-> 00:31:11,220
1855		-broke down, we are now in our minds focusing on lower level
1856		-
1857		-465
1858		-00:31:12,120 ~-~-> 00:31:17,430
1859		-515 one hour basis, optimal trade entries to look for what
1860		-
1861		-466
1862		-00:31:17,520 ~-~-> 00:31:21,690
1863		-lower prices, okay? So by having this mindset going in and
1864		-
1865		-467
1866		-00:31:21,690 ~-~-> 00:31:26,130
1867		-trading during consolidations, we're essentially limiting
1868		-
1869		-468
1870		-00:31:26,130 ~-~-> 00:31:32,730
1871		-our exposure to the market by only selling short. Basically
1872		-
1873		-469
1874		-00:31:32,730 ~-~-> 00:31:37,110
1875		-an established weak market, okay? And we have a bias going
1876		-
1877		-470
1878		-00:31:37,110 ~-~-> 00:31:40,440
1879		-into our analysis. So we're not going to be subjective and
1880		-
1881		-471
1882		-00:31:40,860 ~-~-> 00:31:43,950
1883		-just be lulled into new buying and selling, buying and
1884		-
1885		-472
1886		-00:31:43,950 ~-~-> 00:31:46,020
1887		-selling simply because the price is doing whatever it's
1888		-
1889		-473
1890		-00:31:46,020 ~-~-> 00:31:49,350
1891		-doing the time we sit down in front of our monitors. We are
1892		-
1893		-474
1894		-00:31:49,350 ~-~-> 00:31:54,750
1895		-focused on one specific process and we have a higher time
1896		-
1897		-475
1898		-00:31:54,750 ~-~-> 00:31:58,560
1899		-frame. support resistance levels are or on our side we have
1900		-
1901		-476
1902		-00:31:58,560 ~-~-> 00:32:01,620
1903		-the fact that we have broken markets. Market flows on our
1904		-
1905		-477
1906		-00:32:01,620 ~-~-> 00:32:04,950
1907		-side. Okay, cuz now think just looking at this price chart
1908		-
1909		-478
1910		-00:32:04,950 ~-~-> 00:32:10,830
1911		-chart right here if this is a currency market flow is still
1912		-
1913		-479
1914		-00:32:10,860 ~-~-> 00:32:16,290
1915		-bearish until we take out this swing high before this swing
1916		-
1917		-480
1918		-00:32:16,290 ~-~-> 00:32:20,580
1919		-high formed, market structure was still bearish until this
1920		-
1921		-481
1922		-00:32:20,580 ~-~-> 00:32:23,160
1923		-swing high was taken out. Obviously we keep making lower
1924		-
1925		-482
1926		-00:32:23,160 ~-~-> 00:32:29,040
1927		-lows and lower highs and we maintain a sell scenario in our
1928		-
1929		-483
1930		-00:32:29,040 ~-~-> 00:32:34,440
1931		-trading. Looking for shorter term you know where it's lesser
1932		-
1933		-484
1934		-00:32:34,440 ~-~-> 00:32:38,610
1935		-timeframe, fractal pattern of optimal trade entry tops,
1936		-
1937		-485
1938		-00:32:38,850 ~-~-> 00:32:44,010
1939		-okay. Again, price will stay within this consolidation as
1940		-
1941		-486
1942		-00:32:44,010 ~-~-> 00:32:48,600
1943		-price moves up inside of each one of these price legs. Every
1944		-
1945		-487
1946		-00:32:48,600 ~-~-> 00:32:52,470
1947		-single one of these, if this is a daily chart, every one of
1948		-
1949		-488
1950		-00:32:52,470 ~-~-> 00:32:56,580
1951		-these smaller price swings in here. If you look at smaller
1952		-
1953		-489
1954		-00:32:56,580 ~-~-> 00:33:00,000
1955		-timeframe charts, you'll see optimal trade entries on a
1956		-
1957		-490
1958		-00:33:00,000 ~-~-> 00:33:03,990
1959		-Lower timeframe near the highs and the tops. They're going
1960		-
1961		-491
1962		-00:33:03,990 ~-~-> 00:33:07,770
1963		-to be there because it's fractal in nature. Okay, it's going
1964		-
1965		-492
1966		-00:33:07,770 ~-~-> 00:33:09,990
1967		-to be there, I guarantee you, we're going to look at some
1968		-
1969		-493
1970		-00:33:09,990 ~-~-> 00:33:12,000
1971		-examples. Because I know you're probably scratching your
1972		-
1973		-494
1974		-00:33:12,000 ~-~-> 00:33:13,860
1975		-head saying, Okay, this is great you to show me a line
1976		-
1977		-495
1978		-00:33:13,860 ~-~-> 00:33:17,130
1979		-chart, Michael, but I really want to see, I want to be able
1980		-
1981		-496
1982		-00:33:17,130 ~-~-> 00:33:18,990
1983		-to digest what you're what you're showing me and I'm gonna
1984		-
1985		-497
1986		-00:33:18,990 ~-~-> 00:33:22,350
1987		-get to that. But this is the theory. Okay, so we, we have to
1988		-
1989		-498
1990		-00:33:22,350 ~-~-> 00:33:24,540
1991		-have this before we go into the price chart. Otherwise, this
1992		-
1993		-499
1994		-00:33:24,540 ~-~-> 00:33:25,920
1995		-is gonna look like I'm cherry picking.
1996		-
1997		-500
1998		-00:33:27,960 ~-~-> 00:33:28,680
1999		-Eventually,
2000		-
2001		-501
2002		-00:33:28,740 ~-~-> 00:33:32,340
2003		-price will move outside of the consolidation and into a
2004		-
2005		-502
2006		-00:33:32,340 ~-~-> 00:33:35,790
2007		-trending move again. So we move from consolidation, to
2008		-
2009		-503
2010		-00:33:35,790 ~-~-> 00:33:39,630
2011		-trending move to consolidation to trending move. Now we have
2012		-
2013		-504
2014		-00:33:39,630 ~-~-> 00:33:44,220
2015		-a complete fractal on the higher time frame inside of this
2016		-
2017		-505
2018		-00:33:44,250 ~-~-> 00:33:48,060
2019		-overall price structure. This pattern can be broken down
2020		-
2021		-506
2022		-00:33:48,060 ~-~-> 00:33:51,990
2023		-into smaller sub units on the lower timeframes, and you'll
2024		-
2025		-507
2026		-00:33:51,990 ~-~-> 00:33:56,040
2027		-see the same pattern you see here on the lower timeframes as
2028		-
2029		-508
2030		-00:33:56,040 ~-~-> 00:34:01,680
2031		-well by having this perspective, going into analysis, having
2032		-
2033		-509
2034		-00:34:01,680 ~-~-> 00:34:04,350
2035		-it on a higher timeframe first and then moving down to a
2036		-
2037		-510
2038		-00:34:04,350 ~-~-> 00:34:07,920
2039		-lower timeframe. It helps with your daily bias. It keeps you
2040		-
2041		-511
2042		-00:34:07,920 ~-~-> 00:34:10,020
2043		-on the right side of the market generally unless there's a
2044		-
2045		-512
2046		-00:34:10,020 ~-~-> 00:34:13,050
2047		-major market reversal. Hopefully if you're if you're
2048		-
2049		-513
2050		-00:34:13,050 ~-~-> 00:34:15,300
2051		-monitoring that macro view Anyway, you should be
2052		-
2053		-514
2054		-00:34:15,300 ~-~-> 00:34:18,000
2055		-anticipating that anyway unless there's an act of God or
2056		-
2057		-515
2058		-00:34:18,000 ~-~-> 00:34:21,660
2059		-something new, unexpected takes place in rocks the market.
2060		-
2061		-516
2062		-00:34:26,970 ~-~-> 00:34:29,190
2063		-Okay, so we have our fractal pattern here.
2064		-
2065		-517
2066		-00:34:29,490 ~-~-> 00:34:30,060
2067		-It's a
2068		-
2069		-518
2070		-00:34:30,840 ~-~-> 00:34:36,900
2071		-down swing in prices, a swing that you can see in any
2072		-
2073		-519
2074		-00:34:36,900 ~-~-> 00:34:41,820
2075		-timeframe, it's not limited to any specific one. But what
2076		-
2077		-520
2078		-00:34:41,820 ~-~-> 00:34:47,580
2079		-would it look like in a real chart? Well, it just so happens
2080		-
2081		-521
2082		-00:34:47,580 ~-~-> 00:34:52,410
2083		-that I'm looking at the cable and we're going to use today's
2084		-
2085		-522
2086		-00:34:52,410 ~-~-> 00:34:55,440
2087		-example. So it's, it's more timely, it's it's something that
2088		-
2089		-523
2090		-00:34:55,440 ~-~-> 00:34:58,800
2091		-you can look at right now. I know some of you probably are
2092		-
2093		-524
2094		-00:34:58,800 ~-~-> 00:35:01,410
2095		-watching this video. Probably From the time I did the
2096		-
2097		-525
2098		-00:35:01,410 ~-~-> 00:35:05,520
2099		-recording, but as of the moment I did this I screen captured
2100		-
2101		-526
2102		-00:35:05,520 ~-~-> 00:35:09,180
2103		-what price was doing and this is a 15 minute chart of the
2104		-
2105		-527
2106		-00:35:09,180 ~-~-> 00:35:17,160
2107		-cable British Pound USD. Alright and if you look at this
2108		-
2109		-528
2110		-00:35:19,170 ~-~-> 00:35:23,250
2111		-alright if you look at this we have a major resistance level
2112		-
2113		-529
2114		-00:35:23,250 ~-~-> 00:35:27,630
2115		-here 163 price trades up to that much in the same way we are
2116		-
2117		-530
2118		-00:35:27,690 ~-~-> 00:35:32,370
2119		-our crude example to the left, shows price goes up, comes
2120		-
2121		-531
2122		-00:35:32,370 ~-~-> 00:35:36,930
2123		-down, okay and then comes up and makes another attempt to
2124		-
2125		-532
2126		-00:35:36,930 ~-~-> 00:35:40,860
2127		-get back to that resistance level but it fails and it gives
2128		-
2129		-533
2130		-00:35:40,860 ~-~-> 00:35:46,380
2131		-you an optimal trade entry. Note this low right here. And
2132		-
2133		-534
2134		-00:35:46,380 ~-~-> 00:35:50,970
2135		-now note the fractal example in the upper left. That's that
2136		-
2137		-535
2138		-00:35:50,970 ~-~-> 00:35:56,250
2139		-low that would shift everything to bearish Okay, that is
2140		-
2141		-536
2142		-00:35:56,250 ~-~-> 00:36:00,960
2143		-broken here. So now what you would be looking for His
2144		-
2145		-537
2146		-00:36:01,020 ~-~-> 00:36:04,230
2147		-optimal trade entry sell patterns because now you are an
2148		-
2149		-538
2150		-00:36:04,230 ~-~-> 00:36:08,610
2151		-established bearish market. Okay, everything you do from
2152		-
2153		-539
2154		-00:36:08,610 ~-~-> 00:36:13,320
2155		-that point on should be looked for selling Okay, even your
2156		-
2157		-540
2158		-00:36:13,320 ~-~-> 00:36:17,100
2159		-scalps okay? If you're an intraday trader look for smaller
2160		-
2161		-541
2162		-00:36:17,100 ~-~-> 00:36:20,730
2163		-short term optimal trade entries sell signals okay focusing
2164		-
2165		-542
2166		-00:36:20,730 ~-~-> 00:36:25,680
2167		-on one pattern in fractal in nature you can find several
2168		-
2169		-543
2170		-00:36:25,710 ~-~-> 00:36:29,250
2171		-opportunities in this example alone that gives you optimal
2172		-
2173		-544
2174		-00:36:29,250 ~-~-> 00:36:36,870
2175		-trade entries. For instance this optimal trade entry that we
2176		-
2177		-545
2178		-00:36:36,870 ~-~-> 00:36:41,430
2179		-see here when it broke this example of market
2180		-
2181		-546
2182		-00:36:42,060 ~-~-> 00:36:43,920
2183		-flow changing
2184		-
2185		-547
2186		-00:36:43,950 ~-~-> 00:36:44,700
2187		-to bearish
2188		-
2189		-548
2190		-00:36:45,780 ~-~-> 00:36:49,950
2191		-this swing high has to break before it becomes bullish
2192		-
2193		-549
2194		-00:36:49,950 ~-~-> 00:36:56,670
2195		-again. price moves lower trades up and inside here. Just a
2196		-
2197		-550
2198		-00:36:56,670 ~-~-> 00:37:00,990
2199		-small little timeframe moving in here A small optimal trade
2200		-
2201		-551
2202		-00:37:00,990 ~-~-> 00:37:06,810
2203		-entry in here and sells off. Look at this high here to this
2204		-
2205		-552
2206		-00:37:06,810 ~-~-> 00:37:10,410
2207		-high here, I mean this low here. Do you see how price trades
2208		-
2209		-553
2210		-00:37:10,410 ~-~-> 00:37:13,050
2211		-down up into an apple trade entry and then look at the sell
2212		-
2213		-554
2214		-00:37:13,050 ~-~-> 00:37:20,430
2215		-off. See that? Look at this high here in this low here in
2216		-
2217		-555
2218		-00:37:20,430 ~-~-> 00:37:25,740
2219		-this high here. That's optimal trade entry. Okay. Look how
2220		-
2221		-556
2222		-00:37:25,740 ~-~-> 00:37:29,910
2223		-many times it gives you optimal trade entries just in that
2224		-
2225		-557
2226		-00:37:29,910 ~-~-> 00:37:34,500
2227		-small section of time. See this high here
2228		-
2229		-558
2230		-00:37:35,820 ~-~-> 00:37:36,720
2231		-to this low here.
2232		-
2233		-559
2234		-00:37:38,070 ~-~-> 00:37:42,210
2235		-Price trades down, comes all the way back up. Optimal trade
2236		-
2237		-560
2238		-00:37:42,210 ~-~-> 00:37:46,530
2239		-entry sells off again. Look at the price structure here. It
2240		-
2241		-561
2242		-00:37:46,530 ~-~-> 00:37:50,880
2243		-trades down comes back up. Optimal trade entry again, sells
2244		-
2245		-562
2246		-00:37:50,880 ~-~-> 00:37:55,800
2247		-off. You see how by using a higher time frame premise. You
2248		-
2249		-563
2250		-00:37:55,800 ~-~-> 00:38:01,170
2251		-can use fractal fractal analysis to keep you On one side of
2252		-
2253		-564
2254		-00:38:01,170 ~-~-> 00:38:04,890
2255		-the market keying off of one specific approach to trading,
2256		-
2257		-565
2258		-00:38:04,950 ~-~-> 00:38:08,610
2259		-in this case being a seller and it will keep you more or
2260		-
2261		-566
2262		-00:38:08,610 ~-~-> 00:38:18,690
2263		-less you know with the right bias, okay? Now notice the high
2264		-
2265		-567
2266		-00:38:18,780 ~-~-> 00:38:24,570
2267		-to low here, okay this high to this low. This is one price
2268		-
2269		-568
2270		-00:38:24,600 ~-~-> 00:38:29,790
2271		-lake or one major dominant price swing then we had a major
2272		-
2273		-569
2274		-00:38:29,820 ~-~-> 00:38:34,050
2275		-retracement deep in here, okay? If you go and look at these
2276		-
2277		-570
2278		-00:38:34,050 ~-~-> 00:38:37,950
2279		-high here to this low we have a optimal trade entry. Okay.
2280		-
2281		-571
2282		-00:38:38,340 ~-~-> 00:38:43,950
2283		-So now think about it. We use the fractal pattern here in
2284		-
2285		-572
2286		-00:38:43,950 ~-~-> 00:38:48,930
2287		-this leg here, but now zoom out and don't look so close. In
2288		-
2289		-573
2290		-00:38:48,930 ~-~-> 00:38:53,730
2291		-other words if we move maybe to an hourly chart, you would
2292		-
2293		-574
2294		-00:38:53,730 ~-~-> 00:39:01,410
2295		-see this high to this low up to this high as a fractal
2296		-
2297		-575
2298		-00:39:01,440 ~-~-> 00:39:06,750
2299		-pattern in sync capacity shows here, okay. So this high to
2300		-
2301		-576
2302		-00:39:06,750 ~-~-> 00:39:12,090
2303		-the low would be more or less established. And an example of
2304		-
2305		-577
2306		-00:39:12,090 ~-~-> 00:39:16,530
2307		-buying this high to this low and this low to this high would
2308		-
2309		-578
2310		-00:39:16,530 ~-~-> 00:39:20,700
2311		-be crudely exampled by this low to this high. So watch what
2312		-
2313		-579
2314		-00:39:20,700 ~-~-> 00:39:24,990
2315		-happens the same concept is now going to be applied with
2316		-
2317		-580
2318		-00:39:24,990 ~-~-> 00:39:29,880
2319		-this price swing from high to low to high. This is a low
2320		-
2321		-581
2322		-00:39:30,870 ~-~-> 00:39:34,950
2323		-market structure breaks down here. Okay, see this low? It
2324		-
2325		-582
2326		-00:39:34,950 ~-~-> 00:39:39,240
2327		-breaks right there. So now what do you do? You look for
2328		-
2329		-583
2330		-00:39:39,870 ~-~-> 00:39:44,880
2331		-optimal trade entry shorts. Here's your high trades down to
2332		-
2333		-584
2334		-00:39:44,880 ~-~-> 00:39:48,480
2335		-a low starts to run up. What do you expect optimal trade
2336		-
2337		-585
2338		-00:39:48,480 ~-~-> 00:39:55,440
2339		-entry? high low. Here's your retracement down. Look what
2340		-
2341		-586
2342		-00:39:55,440 ~-~-> 00:39:56,070
2343		-happens again.
2344		-
2345		-587
2346		-00:39:56,400 ~-~-> 00:39:58,770
2347		-See this high to this low
2348		-
2349		-588
2350		-00:39:59,700 ~-~-> 00:40:04,980
2351		-also Trade entry down. Okay. Same thing here very short term
2352		-
2353		-589
2354		-00:40:06,000 ~-~-> 00:40:10,500
2355		-high down the low end in here. And this is where we start to
2356		-
2357		-590
2358		-00:40:10,500 ~-~-> 00:40:13,470
2359		-see what a breakdown did not fulfill.
2360		-
2361		-591
2362		-00:40:14,580 ~-~-> 00:40:15,540
2363		-Look what happens here.
2364		-
2365		-592
2366		-00:40:18,300 ~-~-> 00:40:22,290
2367		-See what's happened we have this high turn. So now we have a
2368		-
2369		-593
2370		-00:40:22,590 ~-~-> 00:40:26,610
2371		-probable change in direction where now market flow has
2372		-
2373		-594
2374		-00:40:26,610 ~-~-> 00:40:31,980
2375		-shifted to bullishness. So this, this fractal is now a
2376		-
2377		-595
2378		-00:40:31,980 ~-~-> 00:40:35,580
2379		-replication of this price swing. So if we look at this high
2380		-
2381		-596
2382		-00:40:36,480 ~-~-> 00:40:41,730
2383		-to this low in terms of pit magnitude and towards the price
2384		-
2385		-597
2386		-00:40:41,730 ~-~-> 00:40:46,410
2387		-swing, it's replicated in terms of distance and the words
2388		-
2389		-598
2390		-00:40:46,410 ~-~-> 00:40:50,160
2391		-this range from low to high is essentially the same thing
2392		-
2393		-599
2394		-00:40:50,160 ~-~-> 00:40:52,950
2395		-you see here this high to this low
2396		-
2397		-600
2398		-00:41:00,000 ~-~-> 00:41:03,840
2399		-Market turning points. All right, we talked about market
2400		-
2401		-601
2402		-00:41:03,840 ~-~-> 00:41:08,880
2403		-flow. And we talked about market structure. But without
2404		-
2405		-602
2406		-00:41:08,880 ~-~-> 00:41:13,410
2407		-having it understood on the actual individual candles or
2408		-
2409		-603
2410		-00:41:13,410 ~-~-> 00:41:18,240
2411		-bars. It could be a little unnerving to some folks that are
2412		-
2413		-604
2414		-00:41:18,240 ~-~-> 00:41:20,280
2415		-just starting to watch this and scratching their head
2416		-
2417		-605
2418		-00:41:20,280 ~-~-> 00:41:22,380
2419		-thinking, you know, what, what am I supposed to be looking
2420		-
2421		-606
2422		-00:41:22,380 ~-~-> 00:41:25,590
2423		-for? Well, regardless of what time frame you're looking at,
2424		-
2425		-607
2426		-00:41:25,860 ~-~-> 00:41:31,500
2427		-okay, if you have a pattern that is looking for a sell
2428		-
2429		-608
2430		-00:41:31,500 ~-~-> 00:41:36,600
2431		-scenario, okay? You're looking for a sell scenario, there
2432		-
2433		-609
2434		-00:41:36,600 ~-~-> 00:41:41,280
2435		-are several opportunities to use price to get you into a
2436		-
2437		-610
2438		-00:41:41,280 ~-~-> 00:41:45,690
2439		-move. Okay, and for instance, we're going to take this is a
2440		-
2441		-611
2442		-00:41:45,900 ~-~-> 00:41:50,340
2443		-turning point for a sell as price runs up, and we're going
2444		-
2445		-612
2446		-00:41:50,340 ~-~-> 00:41:52,440
2447		-to be assuming that this is a resistance level up in here of
2448		-
2449		-613
2450		-00:41:52,440 ~-~-> 00:41:56,430
2451		-some kind. And maybe this is a five minute chart. Okay, you
2452		-
2453		-614
2454		-00:41:56,430 ~-~-> 00:42:00,000
2455		-zoom down to a five minute chart into that resistance level.
2456		-
2457		-615
2458		-00:42:00,000 ~-~-> 00:42:02,910
2459		-And a time of day when you would expect the turn to take
2460		-
2461		-616
2462		-00:42:02,910 ~-~-> 00:42:07,020
2463		-place for instance in London and we see the price run up
2464		-
2465		-617
2466		-00:42:07,080 ~-~-> 00:42:09,870
2467		-okay on this one, one kilohertz is going to represent in
2468		-
2469		-618
2470		-00:42:09,870 ~-~-> 00:42:13,950
2471		-this example a five minute candle. Then we see the lower
2472		-
2473		-619
2474		-00:42:13,980 ~-~-> 00:42:18,630
2475		-candle here form. So now we have a five minute swing high.
2476		-
2477		-620
2478		-00:42:20,070 ~-~-> 00:42:23,160
2479		-Now price will come down, okay and it may even come up here.
2480		-
2481		-621
2482		-00:42:23,370 ~-~-> 00:42:27,840
2483		-Now what does this look like? This would be what an optimal
2484		-
2485		-622
2486		-00:42:27,840 ~-~-> 00:42:29,970
2487		-trade entry sell signal okay?
2488		-
2489		-623
2490		-00:42:31,170 ~-~-> 00:42:31,920
2491		-in here
2492		-
2493		-624
2494		-00:42:33,180 ~-~-> 00:42:36,630
2495		-okay in here, we have another short term,
2496		-
2497		-625
2498		-00:42:37,770 ~-~-> 00:42:38,610
2499		-swing high.
2500		-
2501		-626
2502		-00:42:39,780 ~-~-> 00:42:43,410
2503		-This is a high with two lower highs going sorry with two
2504		-
2505		-627
2506		-00:42:43,410 ~-~-> 00:42:46,020
2507		-lower highs on either side of it. So if you see this
2508		-
2509		-628
2510		-00:42:46,020 ~-~-> 00:42:49,560
2511		-pattern, okay, in this whole range, this whole range could
2512		-
2513		-629
2514		-00:42:49,560 ~-~-> 00:42:56,190
2515		-be as little as five pips. 10 pips, okay. You could be
2516		-
2517		-630
2518		-00:42:56,190 ~-~-> 00:43:01,290
2519		-selling right here on this candle at market. Okay, or You
2520		-
2521		-631
2522		-00:43:01,290 ~-~-> 00:43:05,670
2523		-can use a break below this candle here on a sell stop. Okay,
2524		-
2525		-632
2526		-00:43:05,670 ~-~-> 00:43:09,960
2527		-so if you if you break down here, so be selling on a stop or
2528		-
2529		-633
2530		-00:43:09,960 ~-~-> 00:43:15,180
2531		-selling at the market, okay, or using this low here. Okay
2532		-
2533		-634
2534		-00:43:15,180 ~-~-> 00:43:17,790
2535		-because we have a low with a higher low on either side, this
2536		-
2537		-635
2538		-00:43:17,790 ~-~-> 00:43:22,350
2539		-is a swing low, we can use this low as a indication to sell
2540		-
2541		-636
2542		-00:43:22,350 ~-~-> 00:43:26,760
2543		-on a limit at this price or higher. So, for example, we'll
2544		-
2545		-637
2546		-00:43:26,760 ~-~-> 00:43:31,590
2547		-say this is the cable, and this price is 161 50, we could
2548		-
2549		-638
2550		-00:43:31,590 ~-~-> 00:43:35,310
2551		-have a limit order to sell at 161 50. And on this candle
2552		-
2553		-639
2554		-00:43:35,700 ~-~-> 00:43:38,490
2555		-right here, once we see this candle close and it starts to
2556		-
2557		-640
2558		-00:43:38,490 ~-~-> 00:43:43,200
2559		-open up here, entering a limit order at 161 50. To sell
2560		-
2561		-641
2562		-00:43:43,560 ~-~-> 00:43:46,710
2563		-would fill you in this candle and then we would expect an
2564		-
2565		-642
2566		-00:43:46,740 ~-~-> 00:43:50,550
2567		-anticipate price to break down below this low if we see that
2568		-
2569		-643
2570		-00:43:50,970 ~-~-> 00:43:54,090
2571		-that's what you expect to see in market turning points and
2572		-
2573		-644
2574		-00:43:54,090 ~-~-> 00:43:57,930
2575		-then you can look for range expansion to the downside and
2576		-
2577		-645
2578		-00:43:57,930 ~-~-> 00:44:01,170
2579		-then manage your stops above the recession. Stop the highs
2580		-
2581		-646
2582		-00:44:01,170 ~-~-> 00:44:08,520
2583		-up here as well. Okay, obviously the same thing applies is
2584		-
2585		-647
2586		-00:44:08,520 ~-~-> 00:44:11,220
2587		-reversing it. If we are expecting bullishness in the
2588		-
2589		-648
2590		-00:44:11,220 ~-~-> 00:44:13,650
2591		-marketplace, we're going to assume that there's a support
2592		-
2593		-649
2594		-00:44:13,650 ~-~-> 00:44:16,500
2595		-level down here. We wait for again, this is a five minute
2596		-
2597		-650
2598		-00:44:16,500 ~-~-> 00:44:21,240
2599		-chart, we could see a low with two higher lows on either
2600		-
2601		-651
2602		-00:44:21,240 ~-~-> 00:44:25,350
2603		-side of it here, and price runs up. Okay, and eventually it
2604		-
2605		-652
2606		-00:44:25,350 ~-~-> 00:44:28,440
2607		-starts to come back down again in here. It doesn't have to
2608		-
2609		-653
2610		-00:44:28,470 ~-~-> 00:44:32,040
2611		-do this. Okay, you could just use the previous swing here.
2612		-
2613		-654
2614		-00:44:34,020 ~-~-> 00:44:38,130
2615		-And if it breaks that, obviously that would be what you're
2616		-
2617		-655
2618		-00:44:38,130 ~-~-> 00:44:40,260
2619		-looking for. But you want to be getting in before the
2620		-
2621		-656
2622		-00:44:40,260 ~-~-> 00:44:42,600
2623		-expansion takes place you want to be getting in when prices
2624		-
2625		-657
2626		-00:44:42,930 ~-~-> 00:44:45,690
2627		-on a tear tarps and you're starting to run, you want to be
2628		-
2629		-658
2630		-00:44:45,690 ~-~-> 00:44:47,760
2631		-in before that you want to be in the accumulation phase,
2632		-
2633		-659
2634		-00:44:47,760 ~-~-> 00:44:50,250
2635		-like we have here. This is a consolidation. You want to be
2636		-
2637		-660
2638		-00:44:50,280 ~-~-> 00:44:53,400
2639		-in that, okay. So if we do get opportunity where it comes
2640		-
2641		-661
2642		-00:44:53,400 ~-~-> 00:44:55,440
2643		-back and gives you a smaller short term, optimal trade entry
2644		-
2645		-662
2646		-00:44:55,440 ~-~-> 00:44:59,220
2647		-in here, that's ideal. Okay, so you can use this swing high
2648		-
2649		-663
2650		-00:44:59,220 ~-~-> 00:45:03,630
2651		-here By when a stop above this high here or you can put a
2652		-
2653		-664
2654		-00:45:03,630 ~-~-> 00:45:08,310
2655		-limit order at this price or lower, okay to get in long and
2656		-
2657		-665
2658		-00:45:08,310 ~-~-> 00:45:12,180
2659		-then obviously you're using the swing low and 30 pips, 20
2660		-
2661		-666
2662		-00:45:12,180 ~-~-> 00:45:14,040
2663		-pips, whatever your risk manager is going to permit you for
2664		-
2665		-667
2666		-00:45:14,040 ~-~-> 00:45:18,660
2667		-the trade to do your, your long setup and obviously you
2668		-
2669		-668
2670		-00:45:18,660 ~-~-> 00:45:21,420
2671		-anticipate once you get in the move, you anticipate
2672		-
2673		-669
2674		-00:45:21,690 ~-~-> 00:45:24,150
2675		-expansion and then when you start seeing these short term
2676		-
2677		-670
2678		-00:45:24,150 ~-~-> 00:45:27,810
2679		-swing highs break out, okay, then you have what you expect
2680		-
2681		-671
2682		-00:45:27,810 ~-~-> 00:45:31,590
2683		-to see in in your trade and then hopefully, you reach for
2684		-
2685		-672
2686		-00:45:31,590 ~-~-> 00:45:34,530
2687		-your upper objectives and price for your profit taking