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ICT - Trading Plan Development 7.srt

Last modified by Drunk Monkey on 2021-06-11 13:57
1 00:00:11,759 --> 00:01:42,419 ICT: This Okay guys, we are looking at the intraday trading plan module for a trading plan development series is Part Seven last in the series, right we're
2 00:01:42,419 --> 00:01:54,899 looking at pretty much a very generic approach to how I trade. Obviously you could build upon this is simply just an idea to use as a foundation for your
3 00:01:55,199 --> 00:02:05,699 demo trading. And the premise behind this style trading is obviously still within the scope of trading in sync with the market structure. Okay? The
4 00:02:05,699 --> 00:02:17,969 duration of these types of trades obviously, are intraday, and a portion of which after being scaled out, maybe held overnight. And if you use the previous
5 00:02:17,969 --> 00:02:29,009 modules also, we can use these concepts as well as interdict entering into higher timeframe trades as well. The average PIP return is anywhere between 20
6 00:02:29,009 --> 00:02:39,929 to 100 pips per trade. And if you look at the overall approach, when we look for buy signals, we're trying to trade in the observance of a bullish market maker
7 00:02:39,929 --> 00:02:49,949 profile, or fractal. And we're gonna be looking for price patterns and conferences around support levels. And the optimal trade entry is going to be
8 00:02:49,949 --> 00:03:01,139 utilized for entry price, and fib, extensions for profits. The entry and exits are simply based on time and price theory. And we'll talk more about that as we
9 00:03:01,139 --> 00:03:08,579 go through. And much like everything I teach, the opposite is said for the sell signals, we're going to be trying to trade in the observance of a bearish market
10 00:03:08,579 --> 00:03:18,569 maker profile or fractal. We're going to look for price patterns and conferences around resistance levels. And we utilizing the optimal trade entry for entry
11 00:03:18,569 --> 00:03:29,489 price and using fib extensions for profits. And our entry and exit are based on time and price theory as well. We're risking no more than 2% maximum per trade.
12 00:03:29,909 --> 00:03:44,429 And when we utilizing risk management and control procedures, as we discussed and how to handle losses trading module, and I'll have links at the end of this
13 00:03:44,429 --> 00:03:58,259 video. So you guys can utilize those for amplified education if it's the first time you've seen my work. Alright, looking at the overall concepts, okay, the
14 00:03:58,409 --> 00:04:07,649 key points and concepts and tools we're gonna utilize for this module is obviously hedging upon your understanding of price action. Now, do not be
15 00:04:09,509 --> 00:04:19,469 intimidated if this goes over your head the first time you see it. It's for folks that are basically students of the work I've already produced and shared
16 00:04:19,499 --> 00:04:32,159 for over the last few years on baby pips.com in the forums. If you do not have the foundational information, it's found in my thread on Newby Island, titled
17 00:04:32,159 --> 00:04:42,329 what every new and or aspiring forex trader still wants to know. The first post of that thread has the framework for most of what you're seeing in this module.
18 00:04:44,249 --> 00:04:54,749 By utilizing those tools and spending some time with it and studying price action and not indicators. You'll you'll build a backbone to flesh out the rest
19 00:04:54,779 --> 00:05:08,099 of your price action trading. Now, obviously The next stage when we're going to be using intraday trading your understanding of the Asian range, okay? The Asian
20 00:05:08,099 --> 00:05:11,819 range was introduced to me by Chris Laurie.
21 00:05:13,139 --> 00:05:25,949 He's one of the well respected individuals in forex industry. He's the only one that really I support in terms of teaching. A lot of the things he, he goes
22 00:05:25,949 --> 00:05:34,829 along with in terms of technical analysis and approaches to trading are very close to what I do. It's not exactly the same, but it's close to there. There
23 00:05:34,829 --> 00:05:46,199 probably is out there. Even though he is a paid educator, he does have free resources and information is made available. At the time of this recording, you
24 00:05:46,199 --> 00:05:59,699 can reach him at Chris laurie.com. He has Twitter accounts and all that stuff, just like I do. The main premise two my intraday trading is based on the
25 00:05:59,699 --> 00:06:10,379 direction of the day, and also trading in the direction of the week. Okay, so if I can trade in the higher timeframe direction and have the daily bias in that
26 00:06:10,379 --> 00:06:21,989 same directional sense, my odds of success are greatly amplified. Okay. And as a day trader, when I used to trade the futures market, I trade the bonds in the
27 00:06:21,989 --> 00:06:35,009 s&p 500. Back when it was $500 per point, or full handle, I understood the premise of having the first hours range, okay, and I use that as like, like the
28 00:06:35,009 --> 00:06:44,069 same thing that we're gonna be discussing here for the Asian range, okay. And when I went into trading forex, okay, I stopped trading off the futures markets
29 00:06:44,879 --> 00:06:55,109 and moved into trading forex, and I had that same first hour premise going in, and I use the midnight timeframe from for me, okay, which is five GMT, or New
30 00:06:55,109 --> 00:07:07,169 York time, midnight. And I would bracket that 12 to one o'clock in the morning timeframe. And I would look for breaks above breaks below this particular range.
31 00:07:07,169 --> 00:07:16,709 Now, obviously, I'm not going to teach that here because now the concepts that I use with trading with the Asian range, obviously, like I said, Before, I learned
32 00:07:16,769 --> 00:07:30,029 from Chris Laurie. I didn't know anything about the Asian range, in terms of forex, until I came across his material. So all the credit is associated with me
33 00:07:30,029 --> 00:07:38,129 and my Asian range concepts really should be attributed to Chris Laurie, because that's where I got it from. I'm not one that tried to take credit for something
34 00:07:38,129 --> 00:07:50,999 that I didn't either discover or come across on my own. So again, because of that type of trader, I am I, I like to give credit where credit's due. And the
35 00:07:50,999 --> 00:08:04,229 Bible teaches that pattern my life after that as well. So looking at how the Asian range and Asian range is the price action that takes place from GMT, zero
36 00:08:04,229 --> 00:08:19,979 GMT to five GMT five hour window. That to me is my Asian range. Okay. And I use midnight, New York time as my new day. Again, I know that may be confusing to
37 00:08:20,069 --> 00:08:31,889 me, because it's been talked about various mentors, various teachers resources will talk about, you know, Wellington, and Australia and all that being the new
38 00:08:32,789 --> 00:08:44,429 financial day, not for ICT. Okay. I'm an East Coast trader, on the North American continent. So to me, the new day for me is midnight, so I reference
39 00:08:44,459 --> 00:08:58,199 everything on midnight. Okay, my time, but I also reference the previous price action, okay, that means from zero 100 to five GMT, that price action still has
40 00:08:58,199 --> 00:09:09,689 to be utilized in your analysis, that being the asian session, so the range that it creates, Now granted, Asia still trades beyond five GMT or midnight, my time,
41 00:09:10,259 --> 00:09:22,259 but I'm only concerned about what it has done up to that point. Now Chris Laurie. Is he revealed in his webinar we did together. Earlier in the year, he
42 00:09:22,259 --> 00:09:34,499 uses 530 GMT, which would be equivalent to 1230 GMT. It's not so much that you have to be worried about that. You could use either one really, but I stick to
43 00:09:34,889 --> 00:09:40,949 midnight time or five GMT and the the range that price builds
44 00:09:41,280 --> 00:09:56,640 between those two windows of zero GMT to five GMT. That to me, okay is the accumulation stage for daily range. Okay. Now words market makers are preparing
45 00:09:56,850 --> 00:10:08,010 okay to see The market trades up or down based on the orders that come in and start stacking out years, all kinds of orders that are placed that are pending.
46 00:10:08,280 --> 00:10:16,380 Okay, on an institutional level, not so much retail because the retail traders, you don't really have the exposure to this type of information. But I promise
47 00:10:16,380 --> 00:10:31,110 you, there's, there's a lot of orders that are stacking up in Asia, okay. And as we get closer to Frankfurt, and London open, the the volatility, the liquidity,
48 00:10:31,230 --> 00:10:43,680 the interest, the action, all those things start to build up. And you actually have the biggest point of volume for the day coming in around 2am or 3am, New
49 00:10:43,680 --> 00:10:59,460 York time, okay, which would be seven to eight GMT on average. Now, this range, that's assumed, by studying the high end Lotus formed between zero 100 GMT and
50 00:10:59,460 --> 00:11:11,250 five GMT, there's going to be initial stops and limit orders. beyond those specific points, and we're gonna talk more about that we'll get into it. But
51 00:11:11,640 --> 00:11:23,310 based on where we go from there, okay, is how I arrive at my London open trades. Okay, now, I'll have a built in premise before all these trades take place. I'm
52 00:11:23,310 --> 00:11:30,210 not just looking at chart and saying okay, well, now it's doing this, I'm gonna react now. I've built a model. And we're going to talk about that in here. And
53 00:11:30,210 --> 00:11:41,820 how you can utilize these concepts to flesh out your own approach to trading this specific timeframe, or time session intraday, because I do believe that if
54 00:11:41,820 --> 00:11:51,840 you are capable of trading this timeframe or this session, speaking of which London is one referring to, I think this offers the highest in terms of
55 00:11:51,840 --> 00:12:04,560 probability for maximum PIP hauls for the intraday trading. I think even though it's probably scary to most individuals, I think it is the safest one if you
56 00:12:04,560 --> 00:12:15,180 understand price action, because it's very forgiving if you understand what you're looking for. And that the risk reward is, to me, in my opinion is
57 00:12:15,180 --> 00:12:23,040 optimal. Because you're going to have risk in every session, you trade in any type of trading. Okay, but for me, since I use a standard 30 PIP stop. That's
58 00:12:23,040 --> 00:12:30,300 based on the premise that the average daily range across the board on the majors is about 100 pips per day. Now, obviously, it'll fluctuate up and down. But
59 00:12:30,300 --> 00:12:41,700 generally 100 pips is pretty much the safe that that's the average daily range. So I'm using essentially a third of the average daily range for a stop. So if
60 00:12:41,700 --> 00:12:51,480 I'm trading with the premise that I'm trying to catch the high of the day. If I'm wrong, I'm going to really no, I'm wrong. Okay, so 30 pips is going to
61 00:12:51,480 --> 00:12:59,250 permit me to do that. We'll talk more about that as you go. But the London session, what specifically do we need to know about this session? What sets it
62 00:12:59,250 --> 00:13:09,750 apart from the others? Okay, well, typically, it'll post the daily high or low inside of the first four hours of trading. If you just note on your chart,
63 00:13:10,110 --> 00:13:23,460 exactly eight GMT eight GMT, which is a standard on an open timeframe, you'll see that that many times makes the higher low, because it's the actual London
64 00:13:23,460 --> 00:13:34,530 open, or was referred to as a lineup, and there's no specific exchange that opens up it is that's when everybody dog piles in, and you're start stacking up
65 00:13:34,530 --> 00:13:46,080 around that time. So by having this premise built in if you have a higher timeframe, directional bias. In other words, if you expect the weekly range to
66 00:13:46,080 --> 00:13:55,350 be an up candle, okay, in other words, if you look on a weekly chart, and the candle that you expect to form this week, starting on Sunday trading, if you
67 00:13:55,350 --> 00:14:05,550 expect to see the candle for the weekly range to be an up candle, okay, or Friday's close to be greater than Sunday's opening. Okay, essentially what we're
68 00:14:05,550 --> 00:14:14,250 talking about here, inside of that weekly range, you're expecting to capitalize on some kind of a bullish move. Okay, so by having that premise going into
69 00:14:14,250 --> 00:14:22,470 trading, okay, you're going to be looking for the load of form within the first four hours of trading during the London open session. Okay. So then what you're
70 00:14:22,470 --> 00:14:33,960 going to be looking at as early as 1am, Eastern Standard Time, New York time, okay? or six GMT. Generally, seven to eight GMT is about when it starts to form.
71 00:14:34,770 --> 00:14:37,080 But the ideal bracketed
72 00:14:37,680 --> 00:14:45,810 kill zone that I like to call is seven to nine GMT. Okay, you can learn more about these specific times and how to map out your charts. I'm not going to do
73 00:14:45,810 --> 00:14:55,440 it in this session because I've done extensively in other modules, but if you look at my video, how to trade key swing points video, it actually shows you how
74 00:14:55,440 --> 00:15:05,220 to map out them on an open kill zone and the New York open kill zone. So I'd advise you to take a look So if you haven't, obviously, this is a prerequisite
75 00:15:05,220 --> 00:15:12,540 for you to continue. So I would actually tell you to stop the video here and go check that video out and then come back and pick up where we're at right now.
76 00:15:13,740 --> 00:15:25,020 Okay, so those that did take the instructions, welcome back and those that didn't Shame on you. London open, it typically sees a stop raid or false
77 00:15:25,020 --> 00:15:38,580 breakout, okay, there's always this tendency for London to see this initial rally up fake and then drops going into London clothes, okay, especially if
78 00:15:38,580 --> 00:15:45,990 you're expecting a bearish move for the week or expecting a bearish day. You see this happen over and over and over again, the Asian range high gets taken out,
79 00:15:46,260 --> 00:15:52,920 or we break out of the Asian range trade right back into the Asian range, again, create an optimal trade entry sell off, and then goes down into New York and
80 00:15:52,920 --> 00:16:04,110 North London close. That's generally the type of style trading that I do in the London session. Now, this swing that takes place from London going into the
81 00:16:04,110 --> 00:16:13,860 later part of the day, I dubbed the London Express, and it simply means that you know, I'd look at it like a train ride, it takes 48 hours in duration, okay, and
82 00:16:13,860 --> 00:16:20,970 if you get in if you get in the right direction, it can really take you places guys. It has a huge amount of pips laid at your feet if you understand what
83 00:16:20,970 --> 00:16:30,330 you're doing, and you don't fear holding all day. If you're a scalper and you get in here and you do these 510 15 minute trades and you think you've made a
84 00:16:30,330 --> 00:16:39,750 lot of money, that may feel good, okay, but don't live there, you should develop a little bit more in terms of price action, and understanding and allow your
85 00:16:39,780 --> 00:16:48,990 access if you trade in London. Permit yourself to hold something throughout the day. Okay, if you do that, you'll have a whole lot more pips laid at your feet
86 00:16:49,020 --> 00:16:58,470 in versus just going in the market, taking a few pips and being happy with that. Additional trade entries can be made in the direction of London Express trends.
87 00:16:59,040 --> 00:17:07,350 And you can do that by trading at the New York open. Now it's not my point to teach the New York open. We do have a webinar that was recorded trade in New
88 00:17:07,350 --> 00:17:15,810 York session. You can find that on my YouTube channel. And it's also linked on the pips. Thread, what every new and aspiring forex trader still wants to know
89 00:17:15,840 --> 00:17:25,590 on the first page of that thread, my first post opening title post, it has an index of all my videos that's on YouTube, that is my initial forex trading
90 00:17:25,590 --> 00:17:38,640 course. All those videos are there that webinars in that list as well. Time objectives are utilized for profit taking, and those being 1500 to 1600 GMT,
91 00:17:38,670 --> 00:17:47,670 you've seen this many, many times in my videos, many times call them the actual high or low the day. If we do hold on to a portion of it, we'd love to try to
92 00:17:47,670 --> 00:17:57,600 take some out at 1800 GMT if it continues to move on from the London higher load that were traded. And if we have obviously a small portion to trade on to hold
93 00:17:57,600 --> 00:18:06,480 overnight for additional profits that may ensue going into the next day's trading. Obviously, we'll talk about that when we get to it. But we take profit
94 00:18:06,630 --> 00:18:17,760 objectives based around time and price theory. Okay, and it means support resistance, swings, projections Fibonacci these old highs and lows and specific
95 00:18:17,760 --> 00:18:26,550 times that means the New York open again and we look at the trade in the key swing points video module one the information around the New York open then the
96 00:18:26,550 --> 00:18:35,820 15 to 1600 GMT that profit taking our that's the London close we have to take our largest portion of our intraday trading profits there. And then obviously
97 00:18:35,820 --> 00:18:46,530 for holding on intraday and starts to run, you can get a late New York swing going into 1800 GMT. But if you're specifically going to be looking to capture
98 00:18:46,890 --> 00:18:56,370 only intraday action and never hold overnight, take the lion's portion of your profits around the 1500 to 1600 GMT hour. So inside of that window of of one
99 00:18:56,370 --> 00:19:05,910 hour lock to take your profits and scale up largest portion if you can hold a little bit, okay, obviously tighten your stop loss up and then reach no more
100 00:19:05,910 --> 00:19:14,370 than 1800 GMT if you're just an intraday trader not holding every night. But 80% of the time, you're going to see that 1500 to 1600 hour
101 00:19:14,880 --> 00:19:25,830 post the counter. higher low nomads if it's been a down day, you'll see the low form around 15 to 1600 GMT, and if it's an up day, you'll see the high form for
102 00:19:25,830 --> 00:19:35,610 the day around 15 to 1600 GMT. Okay, so one open gives you the higher low and in 1500 to 1600 gives you the opposite end of the daily range. Okay, so if you take
103 00:19:35,610 --> 00:19:42,960 nothing else from this, this video module, that right there in itself will make you more money in your demo account than you've ever probably imagined. Okay,
104 00:19:42,990 --> 00:19:51,840 that's how precise these concepts work. Now when you start adding all these other components to it, it's like Voodoo, okay, it's just amazing how this stuff
105 00:19:51,840 --> 00:20:01,560 works out. And you'll be you'll be pleasantly surprised once you start applying these concepts. Now when trading in the anticipated Weekly trend direction, you
106 00:20:01,560 --> 00:20:09,270 want to take some profits intraday, but do not show your stop loss too aggressively because if you do that, just in New York session alone, you see
107 00:20:09,270 --> 00:20:18,150 many times there's a deep retracement going into the swing that ensued in London open, only to give an another additional selling opportunity to go into London,
108 00:20:18,480 --> 00:20:29,010 close. So you're going to need to learn to trust the fact that price is going up and down up and down in a natural ebb and flow of price action, it still will
109 00:20:29,010 --> 00:20:38,610 slide in the home around wanting clothes if there's not a market reversal profile. And we'll talk about that later on. But allowing the market room to
110 00:20:38,610 --> 00:20:47,730 move and not trail your stop loss so aggressively. This will permit your positions to remain open and not get stopped out prematurely without seeing your
111 00:20:47,730 --> 00:21:03,810 maximum price objectives fulfilled. Alright, we've talked about the market maker profile. Okay, this is the ICT market maker profile by model. And by looking at
112 00:21:03,810 --> 00:21:11,700 this, okay, we've discussed how there's an accumulation phase in here. And then price starts to break out, it comes back up many times and retest it doesn't
113 00:21:11,700 --> 00:21:18,630 have to do that. But it can give you another edition often trade entry short in here or reflection pattern and sells off goes down makes a low, okay, and then
114 00:21:18,630 --> 00:21:28,470 reverses and gives you a breakout, maybe a retest or Apple trade entry here to get in sync with that move. Once market structure is broken to the upside, and
115 00:21:28,470 --> 00:21:36,630 then you have another additional sometimes secondary position to get out long. And you're going to reach back for this previous consolidation where stocks
116 00:21:36,630 --> 00:21:48,060 would be resting prior to these highs in here. And you see that unfolding this premise or understanding of how price swings. In other words, it's engineered to
117 00:21:48,060 --> 00:22:01,350 go lower to go higher. Okay. If you are an intraday trader this same premise to price action study repeats itself on an intraday scale. Okay, we've looked at
118 00:22:01,350 --> 00:22:10,470 higher timeframe models of this price action, okay over this fractal pattern, but it also repeats itself on intraday price action, okay, and those that have
119 00:22:10,470 --> 00:22:20,490 been students on my work for last few years on baby pips should recognize this is very similar to my classic buy day for the London open. Now initially, I did
120 00:22:20,490 --> 00:22:32,130 a London open video module, it was very, very brief. It had zero audio in it. Because I was really I'll be honest, I was reluctant and releasing some of this
121 00:22:32,130 --> 00:22:40,830 material until there was a lot more structure and education behind it all because I would have never been able to keep up with the level of emails and
122 00:22:40,830 --> 00:22:49,200 questions. What does this mean? What does that mean? So now I think that I have a lot of my foundational information presented already available widely
123 00:22:49,200 --> 00:22:57,960 available on YouTube and baby Phipps, there's many resources you can go to, to further educate yourself on what I'm referring to in this video module. Okay, so
124 00:22:59,250 --> 00:23:06,690 I knew doing it the first time, it probably was going to be not as effective as I was hoped it would be. But I think this time around those that have seen the
125 00:23:06,690 --> 00:23:18,720 first one will agree that this is probably a far better approach to teaching the blended open session with my tools. And obviously, looking at the ICT cell model
126 00:23:18,720 --> 00:23:29,580 for the market maker profile. When we see price run up like this, this is this is a rally, okay? Now where's the engineer price up and then trades lower and so
127 00:23:29,580 --> 00:23:43,680 onwards, they make it go up to go lower? Okay, so there's a accumulation, okay, there is a rapid price increase, okay, and then you see a sell off. And it goes
128 00:23:43,680 --> 00:23:49,230 back to the previous consolidation and or below. So let's take a look at
129 00:23:50,790 --> 00:24:00,060 what this looks like, with price structure. Okay, now, if we're going to be an intraday trader, and this charts are similar to the previous video module, okay,
130 00:24:00,060 --> 00:24:09,360 but it will allow me to teach the same premise because price action is price action. It doesn't matter if you're looking at a one minute chart, 15 minute
131 00:24:09,360 --> 00:24:16,020 chart daily, weekly, monthly, it doesn't matter, the same concepts hold true. There's going to be some things that we talked about in this video module that
132 00:24:16,020 --> 00:24:25,050 is generically inherent with intraday trading, because of the nature of that type, that type of trading. But by far and large, most of everything you're
133 00:24:25,050 --> 00:24:34,620 seeing here is just a compilation of all the things on the higher timeframe applied to a smaller time frame. Let's assume we have this price structure here
134 00:24:34,620 --> 00:24:44,250 and this may be a daily chart, or could be a four hour chart. Okay? But really, for day trading purposes, if you focus in on the daily, four hour and one hour,
135 00:24:44,550 --> 00:24:56,880 that's your universe for your foundational premise behind your directional bias. Okay, everybody sends an email if you talk about on the forums all the time, and
136 00:24:56,880 --> 00:25:04,890 this is great, Michael, I see your videos is absolutely phenomenal. All the tools work so wonderful unless I have my chart, I've just been exposed to your
137 00:25:04,890 --> 00:25:12,120 work, and it's great. But here's the problem we're having. I'm looking at the chart on the hard right edge of my screen. And I don't know where it's going to
138 00:25:12,120 --> 00:25:19,830 go from there. So you have to look on the left side of your chart, guys. It sounds counterproductive, okay, because you're looking at what's already
139 00:25:19,830 --> 00:25:30,870 happened. But that tells you where price is trying to go. Okay? We've seen price, obviously trade lower, okay, and the market structure breaks in here.
140 00:25:31,260 --> 00:25:41,790 Okay, once the price starts to retrace in here and rallies up, we have now a possible swing low forming, okay, this is a daily chart, or if you have an
141 00:25:41,790 --> 00:25:52,170 intermediate term low if this is a four hour chart, okay? Or it could be even a long term low, okay, doesn't matter, just understanding where we are in terms of
142 00:25:52,170 --> 00:26:02,430 price action. So if we see this example, let's say we're looking at a four hour chart, okay, maybe this is a four hour zoomed in, and we've came down on a daily
143 00:26:02,430 --> 00:26:12,900 into a higher level support line, okay, so this may be a big figure, it could be a mid figure, it could be a whole list of things, okay, a monthly high, now
144 00:26:12,900 --> 00:26:21,270 trade it back down to a support. But price comes down to it. And simply because it trades to it, there's two ways of doing that, if this is a higher timeframe,
145 00:26:21,360 --> 00:26:32,310 resistance and support level, okay, and we're expecting price to provide support here. We don't always just assume just buying it because it gets to a level like
146 00:26:32,310 --> 00:26:41,400 that you can, there's nothing wrong with that. It takes a lot of guts. But if you're willing to wait for price to give you clues, it may have in fact, assumed
147 00:26:42,030 --> 00:26:50,250 Long's in here about the smart money, we wait for the market structure to break and you see that by swing high being broken here. Okay, so if you see a four
148 00:26:50,250 --> 00:26:59,250 hour break in market structure, and you see the price retrace back down, you would expect to see it not go back down below this low. So you would see an
149 00:26:59,250 --> 00:27:06,990 optimal trade entry in here. So now obviously, you would expect to see what to unfold higher prices. Okay. So from this point on, what you're, what you're
150 00:27:06,990 --> 00:27:15,600 watching is you're watching market structure. Okay? You're watching how market structure unfolds, the swings, all these types of things that we've looked at in
151 00:27:15,600 --> 00:27:28,650 the higher timeframe just simply utilize here as well for our intraday daily premise, okay. Now, by looking at price like that, okay, what we're going to be
152 00:27:28,650 --> 00:27:36,090 doing is we're gonna be expecting and anticipating highs and lows to be forming, okay? When this market structure break here happens, and we have a shift in
153 00:27:36,090 --> 00:27:47,670 market structure to bullishness, okay. Again, assuming this is a nice support level, price comes down because it's an optimal trade entry. This low that forms
154 00:27:47,670 --> 00:27:56,580 the optimal trade entry in this little swing down. There's, this could be the new day here. Okay, this could be the southern New rate, there could be the new
155 00:27:56,580 --> 00:28:06,180 day. And then we had this move lower, do you understand as my Judas swing, when it dips down from that, initially, that's the move that you buy in London open,
156 00:28:06,600 --> 00:28:16,500 and you expect the daily rains to fulfill gone to the upside, okay? Same thing happens here. If we've seen price drop down lower in here, this could be a New
157 00:28:16,500 --> 00:28:18,330 York open market reversal
158 00:28:19,620 --> 00:28:27,480 and trade lower and it can then this could be a new day here or could be a new day rain here, where we have the Asian range and then there's a dip down initial
159 00:28:27,900 --> 00:28:35,550 drop or Judas rally, I'm sorry, decline, setting up a buying opportunity and we'll talk about that as we go. But you want to be looking for opportunities to
160 00:28:35,550 --> 00:28:46,770 get in sync. Okay, getting sync with this market structure that's bullish. Now when we have these very clean, discernible price legs like this price swings,
161 00:28:47,010 --> 00:28:54,630 this is an impulse move. Again when you see price run up like this, okay? You're gonna be expecting a retracement at some point. And when you start to see that
162 00:28:54,630 --> 00:29:04,770 unfold, you don't pull your fib from the low to the high end look for these obvious levels of retracements. Okay, now you can be a day trader, okay with
163 00:29:04,770 --> 00:29:14,280 market structure corrections, okay and retracements and be shorter you shorting in here and in here, but never losing sight of or possibly disagree chasing
164 00:29:14,280 --> 00:29:23,070 deeper with this higher timeframe for our market structure or it could be a daily market structure we're looking at here. So by having the higher timeframe
165 00:29:23,070 --> 00:29:32,970 daily, four hour and one hour charts up and mapping out price swings and where we are impossible levels of retracement using your fibs this level could be an
166 00:29:32,970 --> 00:29:43,230 optimal trade entry by based on this low to high could be a 62% retracement level. Or if you use this low here on market structure to this high, this could
167 00:29:43,230 --> 00:29:52,320 be a 62 or even a sweet spot you're setting I'm setting tracing a level okay. So when we get to these levels, it could be starting to trade here and midnight
168 00:29:52,320 --> 00:30:02,220 time in New York and then you had that swing lower into Judas. Okay and comes right down blows out an old bow comes down in Maybe even find support like we'd
169 00:30:02,220 --> 00:30:10,470 see here. And then this is your mum and open buy to get in sync with a higher time frame premise. And you would let your profits run going towards, you know,
170 00:30:10,620 --> 00:30:18,540 higher prices going into New York open in London close and respectively. Maybe if you're gonna hold it overnight, this is why you would do it. Okay, maybe not
171 00:30:18,540 --> 00:30:26,760 so much holding on long in here overnight because you're expecting a deeper retracement. But all the things we learned in the higher timeframe and market
172 00:30:26,760 --> 00:30:40,260 structure and other videos. All those things culminate with intraday price action and utilizing these higher timeframe premises in intraday action. Now,
173 00:30:41,460 --> 00:30:53,370 the easiest, most sweetest setups come when you trade between intermediate term and higher timeframe, long term price swings, and those being the blue circles
174 00:30:53,370 --> 00:30:53,640 here.
175 00:30:55,440 --> 00:31:05,160 Okay, and we've talked about this in the previous video module, so I'm not going to go over what these are. Do some study guys go and research this, okay, but
176 00:31:05,160 --> 00:31:16,920 the enemy at term lows and here if we trade off of the term low and get long, only trading long and open, Long's expecting Judas swings lower. Okay, trading
177 00:31:16,920 --> 00:31:26,610 becomes absolutely easy. You know, what you're looking for, you know, your overall premise is to be expecting bullish prices. Okay, so now what do we do,
178 00:31:27,000 --> 00:31:39,060 we apply the concepts that we learned in how to capture explosive price moves in the Forex market video module, where I teach that between Sunday's opening and
179 00:31:39,300 --> 00:31:49,740 Tuesday's London open, there's a high probability of the weekly higher low to form by Tuesdays on an open, okay, if it doesn't form by Tuesday's long and open
180 00:31:49,740 --> 00:31:58,740 generally between Tuesday and Wednesdays, London open, the weekly range higher low will establish itself. Okay, so now think about this. Let's assume for a
181 00:31:58,740 --> 00:32:05,520 moment we've mapped out this is a higher time frame support level, we had market structure shift here, price comes down the optimal trade entry, we're in a
182 00:32:05,520 --> 00:32:16,830 bullish leg. Okay. Every time price comes down, we're still expecting price to provide us a buying opportunity. Okay. Now, what are we looking for going up?
183 00:32:17,100 --> 00:32:24,390 Well, obviously, we had this price like here from this high down to this low to contend with this is the range that we're trading within. Okay, so you have to
184 00:32:24,390 --> 00:32:32,310 have your fibs pulled up. And this is going to be your 79 or 62, or even sweetspot, based on the swing from here to here. But also notice there's a
185 00:32:32,310 --> 00:32:44,790 smaller wave and price action from here to here. So you have your range from this high, down to this low. So when price gets up to around that 62 to 79%
186 00:32:44,790 --> 00:32:55,980 tracing level on here, that may be a reason to, you know, be more cautious taking London open buy signals. Okay. So, using the inside the range concepts we
187 00:32:55,980 --> 00:33:03,750 learned earlier in the year in a webinar, okay, the same premise holds true here, you still have to look at your previous price swings and how they map out,
188 00:33:04,170 --> 00:33:12,150 you can build your premise based on that just simply just doing this alone will give you high odds probabilities to base your trading on. So now think about
189 00:33:12,150 --> 00:33:21,780 what we've done. We've established a premise that expected bullish prices based on the market shift and structure here. So when we move on one above this
190 00:33:21,780 --> 00:33:28,800 previous swing high here and start to retrace, gets an awful tragedy and starts to trade higher, we have confirmation that we are in a bullish leg. Okay, now
191 00:33:28,800 --> 00:33:37,290 market structure is bullish. Okay. At this point here, market flow on all timeframes probably will be, you know, going up going up. So it makes trading
192 00:33:37,320 --> 00:33:44,940 easy. Now, you just simply wait for the setups to unfold in London open. And if you're a New York open trader, I'll toss this and just wait for your buy signals
193 00:33:44,940 --> 00:33:57,720 in here as well. Okay. But looking at how price trades at the London open, we would expect to see price drop down, okay, out of the Asian range. Or if it
194 00:33:57,720 --> 00:34:03,930 breaks out initially, if it trades back down into the Asian range look to trade optimal trade entries while it's inside of the Asian range. And we'll talk more
195 00:34:03,990 --> 00:34:16,740 about that and when we have the actual diagrams and such. But if we are trading with that premise, it's bullish. And it's Sunday. What's your homework,
196 00:34:17,040 --> 00:34:29,100 hopefully leading you to that we're probably going to see the low the weak form by Tuesday. Okay, so if you're really capable of trading the London open and you
197 00:34:29,100 --> 00:34:40,380 can sit down and be a part of Mondays London open or Tuesday's long and open if you have that capabilities to do that timewise and it fits your lifestyle. Many
198 00:34:40,380 --> 00:34:49,380 times you can actually end up buying the low of the week. And I can tell you that's absolutely mind blowing when you look at how many times it can be done.
199 00:34:49,890 --> 00:35:00,180 And even if you get a small portion of the weekly range, okay if the average daily range is 100 pips, the weekly average range could be several 100 pips So
200 00:35:00,180 --> 00:35:11,250 if you get, you know, small portion of that you can look at anywhere between 150 to 300 pips, you know, as a potential pitfall. So, even though we're supposed
201 00:35:12,240 --> 00:35:19,350 specifically talking about day trading here, I want you to use these concepts to kind of broaden your perspective and say, Hey, I can use these concepts really
202 00:35:19,350 --> 00:35:28,230 to get in sync with these higher timeframe trades, and not, you know, exit the trades too prematurely and allow my new trades to pay me more.
203 00:35:34,110 --> 00:35:46,710 Alright, so now thinking with this premise in mind, if we're bullish, okay, this could be a one hour chart. Okay. We're looking at a possible bullish move, going
204 00:35:46,710 --> 00:35:57,150 higher. We see price trading lower. Okay. Now, if the previous chart shows that market structure shift bullishness, if we zoom down to a one hour chart, we can
205 00:35:57,150 --> 00:36:04,230 actually start seeing smaller swing highs. Okay, that would, you know, assume that we have this higher timeframe support level, if that market structure
206 00:36:04,230 --> 00:36:16,380 breaks here on an hourly basis on smaller short term, we can start seeing more time sensitive price swings, okay, and price is still going to swing, you know,
207 00:36:16,410 --> 00:36:26,700 based on price action, okay, you're not going to change where it's going to go. But your perspective on looking at it, okay, can be really skewed based on the
208 00:36:26,700 --> 00:36:36,420 timeframe you're looking at. So if we're looking at just simply this high to this low, this could have been long you into believing this could be a sell off,
209 00:36:36,540 --> 00:36:45,060 okay? Or optimal trade that you sell. But having a hard time frame premise in mind and this being a heart level key support level, okay, that we talked about
210 00:36:45,060 --> 00:36:53,670 earlier. The premise is that we're expecting market structure to shift the bullishness. Okay, so every time we see a retracement, all that's going to do is
211 00:36:53,670 --> 00:37:01,650 likely set up a new buying opportunity. So every time price creates a new range, we just run our fib from that and look for the 62% retracement level optimal
212 00:37:01,650 --> 00:37:12,270 trade entries. Okay? Obviously, you would be looking for reflections as well, this could be a very reflection is this low in here down to this low here could
213 00:37:12,330 --> 00:37:20,190 present a optimal trade entry. Yes here, but it could also be a reflection as well. So don't just think in terms of you always have to have the optimal trade
214 00:37:20,190 --> 00:37:32,640 entry. It's the easiest one I teach. But other patterns like you could have ICT grill in here to tie to trend following it could be a stinger in here. Okay, all
215 00:37:32,640 --> 00:37:39,840 these types of patterns. Now, you know, if you have this higher timeframe premise in mind, you start looking for these patterns to unfold with that
216 00:37:39,840 --> 00:37:49,680 directional premise. Okay, so having that unfold on an hourly basis, and having your dynamic support resistance levels carried from the higher time frame down
217 00:37:49,680 --> 00:38:04,050 to the shorter timeframes. You can expect more clear price swings based on the hourly chart, your weekly management of price swings intra week should be
218 00:38:04,050 --> 00:38:12,120 focused on the one hour timeframe. So once you arrive based on the daily and four hour charts, you can really work the rest of the week off of an hourly
219 00:38:12,120 --> 00:38:19,770 chart, just using support resistance off that measuring swings using your fibs. But when you enter the trades, when you take action, and you're actually part of
220 00:38:19,770 --> 00:38:27,840 the trades, you manage those trades on a 15 minute timeframe. Okay, so have that in your notes. I know you're probably saying Why didn't you give me a screen
221 00:38:27,870 --> 00:38:35,580 shot with all this stuff. And now it's so much easier just to cut and paste now. Keep yourself on log, keep yourself a journal, make, make your own notes, okay,
222 00:38:35,580 --> 00:38:44,370 if you write it down, you have a more higher chance of remembering it versus me just talking about it. Okay. So again, you're looking at the daily and four hour
223 00:38:44,400 --> 00:38:51,780 looking for market structure to break give you higher timeframe, directional premise, where's price trying to reach, okay? Then once you have a market
224 00:38:51,780 --> 00:38:59,670 structure break, okay, it makes the trading very easy for you in terms of directional premise, because that's the direction you're gonna look to trade in.
225 00:38:59,910 --> 00:39:08,070 Okay, based on the daily and Endor, four hour, the four hour is going to be much more sensitive. And so, you know, if you have a little bit firmer understanding
226 00:39:08,070 --> 00:39:16,110 of price action, you could probably just live on the four hour. But also make sure that you don't forget, there's probably daily support resistance and weekly
227 00:39:16,140 --> 00:39:27,660 support resistance and monthly even support and resistance, that may be a factor that you thought to contend with. So we're not negating the benefit of having a
228 00:39:27,660 --> 00:39:35,220 hard time frame top down analysis. But if you're just starting off and you just want to get here and start chasing action, this is you know, obviously I can do
229 00:39:35,220 --> 00:39:44,370 it a daily in four hour. But once you have your directional premise based on those timeframes, you live on the daily chart. I'm sorry, the the 60 minute
230 00:39:44,370 --> 00:39:54,750 chart for your intra week swings is watching the one hour chart and then watch how price swings within that timeframe. But if you enter the trades, you manage
231 00:39:54,750 --> 00:40:02,520 them on a 15 minute timeframe. Okay, you managed to trade on the 15 minute chart and that's because If you are at some point going to move your stop loss and
232 00:40:02,520 --> 00:40:13,800 trail it, you want to using the previous two swing lows prior to where the price is trading at now for instance, say we're here and we saw price run up on both
233 00:40:13,800 --> 00:40:21,720 these highs and we're long. Here's a swing low. And here's a swing low and assuming since the 15 minute chart now No, I mean probably be confusing you
234 00:40:21,750 --> 00:40:25,050 talking about them timeframes, but just go back over the video,
235 00:40:25,200 --> 00:40:35,700 just rewind it okay, but this this low and this low here is to swing lows prior to current price action. So assuming price is trading here breaking out above
236 00:40:35,700 --> 00:40:45,810 these highs here more long something back here or even here. This swing low and this swing low are the last two swing lows, most recently formed, my trailing
237 00:40:45,810 --> 00:40:56,760 stop loss will be to 10 pips below this low here. Okay, so now we're talking managing my long with a stop 10 pips below the second most recent swing low,
238 00:40:57,120 --> 00:41:08,520 okay. And obviously just reversing it, assuming that we got short back in here, okay. And prices now breaking down here, below this low, this is one swing low.
239 00:41:09,540 --> 00:41:19,920 And this swing low here. Now, the caveat is, is you gotta have a higher swing low than the first one. So this one would not be considered this swing high. In
240 00:41:19,920 --> 00:41:27,150 this swing high. This is your second one back, it's onwards as prices moving in your favor. On a 15 minute timeframe, I would look for the most recent swing
241 00:41:27,150 --> 00:41:35,730 high on a 15 minute basis if I'm short, and then go back and find the higher swing high than that on a 15 minute basis. And I would trail my stop loss 15
242 00:41:35,730 --> 00:41:44,130 pips, I'm sorry, 10 pips above that. Okay, so my stop would be above here. And I would continue to do that as price trades lower. Okay, so in this case, and once
243 00:41:44,130 --> 00:41:52,740 we break this low here, trading right into that support, this would be the swing high, and in previous swing high. So this is the most recent swing high at this
244 00:41:52,740 --> 00:42:00,840 point here. So it'd be 10 pips above this, you can see even though this is a crude diagram and drawing, check out price action on some of the moves that's
245 00:42:00,870 --> 00:42:09,090 recently happened and use a 15 minute time frame. And you'll see that many times it keeps you in the trade. So that's how we break our charts down. That's the
246 00:42:09,090 --> 00:42:17,130 timeframe. Use usage and utilization, how we look from the higher timeframe down to the lower timeframe and we would look for the one hour chart to create its
247 00:42:17,130 --> 00:42:28,080 own support resistance as well. Okay, and then obviously looking for upside objectives based on swings on the one hour chart, and 15 minute chart. Okay, so
248 00:42:28,080 --> 00:42:34,560 when your fibs on these swings here for getting extensions and expansions will serve you well.
249 00:42:41,430 --> 00:42:57,960 Okay, we are looking at what you see typically unfold in London open. Alright, we're looking at a price move here. Okay, we have an Asian range. And we'll see
250 00:42:58,140 --> 00:43:09,120 typically a initial pop up out of the Asian range as a fake out this is when they tag the pending orders for those that may be short. They'll take those
251 00:43:09,120 --> 00:43:15,510 individuals out and those that want to be long on a breakout system. Okay, they'll run the market up there and trip those individuals into the market.
252 00:43:16,020 --> 00:43:23,340 Because that will create a pocket of liquidity. Okay, deals will take it up there. it'll fill it, okay. And then they'll treat it lower. Okay, this is the
253 00:43:23,340 --> 00:43:33,870 engineered price decline. Okay, now think what was going on over here? price has been rallying. Okay, if we're in a bullish market structure, okay? Don't think
254 00:43:33,870 --> 00:43:43,110 just obsessing because we're falling out of bed in London opens early session, that's not going to always equate to it's going straight to Hades. You think
255 00:43:43,110 --> 00:43:52,410 about price action when it's going lower. Okay, it's going to go lower to make a low and then trade higher. Okay. So this is the price engineering that takes
256 00:43:52,410 --> 00:44:05,490 place. Over here, this low back here may be a previous day's low, it could be a previous week's low, it could be a higher time frame support resistance level,
257 00:44:05,490 --> 00:44:19,200 it could be a trinity level, it could be pivots, it could be a whole list of things that cause the price as price action to rally up from that point. But you
258 00:44:19,200 --> 00:44:29,130 would run your fib from this point here to the highest high either inside of this day, or wherever high it's formed here. And you would pull that fib here
259 00:44:29,130 --> 00:44:40,920 and then you would look for optimal trade entry to pullback into as the Judas swing breaks down. That's how you time your London open buys. assuming you're
260 00:44:40,920 --> 00:44:50,430 having a bullish market structure and everything is expected to go higher. This level here needs to have something associated with it. Okay, words when you see
261 00:44:50,430 --> 00:44:58,890 the fib from the low to here. In other words, this price swing up here we're trading inside the range. Okay. So as price starts to retrace, we're trading
262 00:44:58,890 --> 00:45:08,970 within the suitable range. That low to high or ever higher highs over here in this example the previous highs, this is a little bit slightly lower and it
263 00:45:08,970 --> 00:45:18,210 starts to trade down. This is the Judas swing. Okay, now its price is trading lower. Okay? Now when you see that happening in London open and you're part of
264 00:45:18,240 --> 00:45:28,470 like chat rooms or forums, you'll see a those that are brave, they'll come out and say that I'm short, assuming this is the cable, British Pound USD pair,
265 00:45:28,740 --> 00:45:39,630 don't come on board and say I'm short now. And you know, I'm selling and I'm on I'm on 10 pips profit 10 1215 pips profit, it's going straight down. Yeah, well,
266 00:45:40,680 --> 00:45:50,430 right around two to three o'clock in the morning, New York time will happen is is the market participants that knew what's going on, they understand key
267 00:45:50,430 --> 00:46:03,330 support resistance levels, the understand price structure, okay, there is a huge interest in buying this sensitive, high level, key support resistance level.
268 00:46:03,660 --> 00:46:13,410 Okay, so when I take it down here, there's gonna be a large entity that we call smart money that's going to come in here and accumulate all kinds of long
269 00:46:13,410 --> 00:46:24,240 positions here. So we're waiting for this to unfold when price does this, okay, we buy right here. Okay, this is the optimal trade entry in London open. Now you
270 00:46:24,240 --> 00:46:33,690 can look at a one hour chart and see this, okay, but predominantly, it's a 15 and five minute chart, you'll see this type of action. And when it comes down to
271 00:46:33,690 --> 00:46:44,070 it, and you see a five minute optimal trade entry at that level here, this is where you buy, okay? Now, also, when price is trading down here, you want to
272 00:46:44,070 --> 00:46:57,330 look at correlated pair SMT. You want to look at USD x SMT divergence gives some kind of framework to establish some confidence behind this level, simply because
273 00:46:57,330 --> 00:47:03,600 we have a range here and it trades back down to that level and it's bullish, it could still go down a little bit lower than that and still, you know, ultimately
274 00:47:03,600 --> 00:47:10,680 trade off or even continue going lower. That's where you stop loss orders. Because we don't know for certain our analysis is going to be fruitful. But this
275 00:47:10,680 --> 00:47:18,720 is how we would be buying the market in London open. And obviously as price starts to move up, we will be looking for the highest that's been established in
276 00:47:18,720 --> 00:47:28,380 the early London open session to be trailed, I'm sorry, tripped and taken out as upside objectives. Okay. That's again, that's assuming that we have a bullish
277 00:47:28,380 --> 00:47:31,290 market structure and higher prices are likely.
278 00:47:35,220 --> 00:47:43,440 Alright, so let's look at that a little bit more closely. Okay, we have an Asian range here that unfolds. And we're assuming that we are in a bullish market
279 00:47:43,440 --> 00:47:51,000 structure, okay, we're expecting higher prices, we're expecting the market to go lower to go higher. Okay. So we're just going to trade down to a higher level
280 00:47:51,000 --> 00:48:00,960 support level. Now this level down here may be again, could be a previous day's low, it could be a previous day's high, it could be a previous day's New York
281 00:48:00,960 --> 00:48:12,360 session level. Okay, because New York was the most recent one outside of the asian session, it could be a previous month high, okay, or weekly, high or low,
282 00:48:12,630 --> 00:48:22,230 something that along with a higher time frame premise, okay, there's going to be something that contributes to the fact that this is a low forming. But before
283 00:48:22,230 --> 00:48:32,040 the Asian range is broken many times again, we'll see that rally up, it's a turtle soup sell. Again, if you're a scalper, you could see this as an
284 00:48:32,040 --> 00:48:41,280 opportunity to scalp and go lower, I don't trade like that. Okay, once the Asian range lows taken out, many times you'll see it retrace and test that level
285 00:48:41,280 --> 00:48:50,970 again. And this could be your short, okay, if you again are a scalper with the expectation to take profits down here at the higher time frame support level,
286 00:48:51,120 --> 00:49:00,390 okay, but I am not that type of trader. This is the setup that I have. Okay, if I'm going to bullish market structure, I'm expecting higher prices. Okay. And I
287 00:49:00,390 --> 00:49:10,080 understand that looking at that previous slide, we had, this decline was taking me inside the previous range, okay, or at Priceline that we just discussed. When
288 00:49:10,080 --> 00:49:18,690 we get down and create an optimal trade entry in here, that's where I'm buying Okay, cuz we have a higher low here in this example, this this is the cable on
289 00:49:18,690 --> 00:49:30,840 the fiber this may have created a lower low here, low in fiber, okay, so you may not see the s&p divergence there, but you may end up seeing a higher high in the
290 00:49:30,840 --> 00:49:41,040 dollar. So you'd end up with a USD x SMT divergence here to support the long on the cable. Obviously, when you see the market structure shift on the intraday
291 00:49:41,040 --> 00:49:52,320 basis, if you miss the optimal optimal trade entry here, you can look for another opportunity to get get long before it starts to go off on a tear. And
292 00:49:52,320 --> 00:50:02,190 obviously we'd be looking for average daily range to fulfill. I do not consider average daily range now average daily range is A tool that you can get off of
293 00:50:03,030 --> 00:50:09,990 most platforms, you just pull up the indicator in this look at what the average daily range is for the last five days is what I use. Predominantly, I'm not
294 00:50:09,990 --> 00:50:23,730 going to go into other ranges of average daily range, I use others, but most of my analysis is based on a five day average daily range. So I'll be utilizing the
295 00:50:23,760 --> 00:50:37,080 MT four tool that I feared on the internet, for my average daily range for a five day basis, I don't even load that up until I get to 10 GMT. Okay, so have
296 00:50:37,080 --> 00:50:47,880 that in your notes at 10 GMT, that is when you open up your average daily range, okay, and then whatever that level it shoots for, for a projected high, that's
297 00:50:47,880 --> 00:50:55,560 what you'd be aiming for for the day. Now, it doesn't always get to those levels. Okay, many times, it'll probably fall short of it. And the meantime, go
298 00:50:55,560 --> 00:51:05,340 well beyond and we'll talk about that later on in the video. But unless average daily range has been fulfilled, if we get an retracement in the New York
299 00:51:05,340 --> 00:51:13,590 session, and by pulling your Fibonacci based on swings from the London open session, we could get another optimal trade entry in here to get long and
300 00:51:13,590 --> 00:51:21,990 fulfilled the rest of the day. So if you're a type of trader that wants to add to winning trader winning trades that are open, this is one way you could do it.
301 00:51:22,020 --> 00:51:31,470 Or you could take profits here, you know, and then doctor take another smaller position in here. Okay, on that avikii technique, you should trade like that.
302 00:51:31,470 --> 00:51:39,660 But there's a lot of freedom involved by having this understanding, because you could apply it to whatever type of trader you're me. If I went long down here,
303 00:51:39,660 --> 00:51:47,250 my stop loss would remain below the daily low. Okay, so that's one of the important things that if you're a day trader, and you're trading London,
304 00:51:48,510 --> 00:51:57,300 I do not show my stop loss inside of the range. Once the lows formed in London, whatever the short term lows are, I could care less. Okay, because I know that
305 00:51:57,330 --> 00:52:05,220 New York is likely to have a retracement rather deep sometimes. So that's why I take some profits, when we trade back up and blow out the Asian range highs
306 00:52:05,220 --> 00:52:16,530 again, once we dip down, I'm thinking sometimes 30% 50% most cases and sometimes even 70% of my trade off at that level. Now what what establishes that, that
307 00:52:16,530 --> 00:52:29,790 parameter? Well, if I'm trading against the hard timeframe premise, I'm taking 70% off here. Okay, if I'm trading with the higher premise in mind, I'm taking
308 00:52:29,790 --> 00:52:39,240 30% off here and leaving 70% one, we're reaching for the average daily range or higher, okay? If I'm just really not sure I'm not comfortable, you know, I'll
309 00:52:39,240 --> 00:52:48,960 take 50% off of the trade here and leave 50% of the initial entry on long, but my stop loss stays down here at breakeven, once it goes inside of this daily
310 00:52:48,960 --> 00:52:56,580 range, it should never come back down to that low again. If it does the trades no good. Now, if it doesn't take me out, I could care less. Hopefully I've made
311 00:52:56,580 --> 00:53:07,680 first profit in here, or I've moved my stop up progressively enough to limit my risk. Even though my initial stop losses is 30. At some point, as prices start
312 00:53:07,710 --> 00:53:17,820 to move here, I'm trimming it down to 20 1510. Five to break even eventually, okay, but I'm not in a hurry to move my stop loss up to break even, I'm not not
313 00:53:17,820 --> 00:53:27,120 trying to lock in profits, because you'll learn by doing this over a period of time that price action intraday many times. They know how you're going to trade
314 00:53:27,120 --> 00:53:33,990 and you're going to trail your stop loss. And so if you're right on day, and they can tag you out and you're long, think about it, what's your stop loss
315 00:53:33,990 --> 00:53:43,680 going to be? It's a stop for selling, okay, it's going to become a sell order at the market, who's going to take the other side of that trade smart money. So if
316 00:53:43,680 --> 00:53:54,330 they can take it back down there and stop you out, and your stop becomes a market order to sell that that stop being triggered. Your long gets sold to them
317 00:53:55,020 --> 00:54:02,190 because they're going to buy Okay, and then they'll be able to own they'll be on the move going higher going in the average daily range for London close up in
318 00:54:02,190 --> 00:54:14,670 here in terms of time and price theory. Alright, now, many times you'll see price give you this buying opportunity. And this may look a little bit different
319 00:54:14,670 --> 00:54:21,660 here. But what I want to bring to your attention is maintenance, it'll trade up bullishly and you'll be long in the long and open. But if we trade up into a
320 00:54:21,660 --> 00:54:32,520 higher level key or weekly or daily or even monthly resistance level up here, in the trades up into that in to the New York or London close timeframe. Many times
321 00:54:32,520 --> 00:54:40,080 this will set up a market reversal profile. Okay? So have that in mind. Don't Don't marry the vein simply because you have a bullish market structure,
322 00:54:40,080 --> 00:54:46,200 everything's bullish and you're being profitable. Don't hold on to these things thinking they're always gonna go to the moon, okay, because this is a scenario
323 00:54:46,200 --> 00:54:55,230 that might unfold and if you hold on to your position with too much of the initial position open, you could end up seeing some of your profits, erode and
324 00:54:55,230 --> 00:55:01,290 maybe become a losing trade. Again, this illustrates the notion that Why stocks are important.
325 00:55:06,540 --> 00:55:15,180 Okay, obviously, if we're looking at the reverse, and you would see price rallying up here, this is going to illustrate an hourly chart, we would be
326 00:55:15,180 --> 00:55:27,870 looking for the price swings on an hourly basis intra week to permit our trading based on a daily and four hour premise or directional bias. Once the hourly
327 00:55:27,870 --> 00:55:36,930 chart gets in sync with that, it just makes your London open trades very, very easy. And again, this is not to teach you how to trade every single London open,
328 00:55:37,050 --> 00:55:48,060 it's mainly focused on the real easy setups, okay. And by easy, I don't mean guaranteed profits, okay. So everything I'm teaching you here is for you to
329 00:55:48,060 --> 00:55:53,850 utilize on a demo account. Okay, so you got to pay attention, these risk disclaimers in the beginning of the videos, they're there for a reason, they're
330 00:55:53,850 --> 00:56:00,750 not for decoration. Everything I'm showing you is obviously just for informational purposes. So utilize a minute demo account, I don't want credit
331 00:56:00,750 --> 00:56:07,440 for you making money. And I certainly don't want credit for you losing money. So we got to be responsible with this information. So with all that said, this
332 00:56:07,440 --> 00:56:14,910 being an hourly chart, we got to look at the swings on an hourly basis. And while this illustrates a rather crude example of price, action, all the things
333 00:56:14,910 --> 00:56:25,200 that we said that were true about break in market structure going bullish. Same thing happens here. When markets are breaking down on this high here, every
334 00:56:25,290 --> 00:56:35,460 rally up is going to be a possible area to look for selling scenarios in London open. So looking at that. This is what you end up seeing many times, you'll see
335 00:56:35,580 --> 00:56:44,760 this swing down and there's a rally up in London open, you'll get a optimal trade entry many times trade up into this specific point here. Okay, but
336 00:56:44,790 --> 00:56:55,410 initially, you'll see the Asian range in here. There's initial drop down, pending orders that are tripped, okay, those that are caught, net sellers, okay.
337 00:56:56,160 --> 00:57:04,170 are dragged against the coals and then all of a sudden, they go into a deeper range retracement here optimal trade entry. Once you see this higher timeframe
338 00:57:04,170 --> 00:57:14,160 resistance level, again, much in the same capacity we used for the buy scenario, the same rules apply here for the sell, you would look for the London open kill
339 00:57:14,160 --> 00:57:25,440 zone in here. Two o'clock in the morning, three o'clock and four o'clock in the morning, New York time or six to eight, or six to nine GMT. That window of
340 00:57:25,440 --> 00:57:33,210 opportunity for the London open. That's the kills when you would look at this see this actual high form. And this many times will be the actual high of the
341 00:57:33,210 --> 00:57:44,220 day. And then you would just wait for price to try to move into that new york open timeframe or London close. So looking at it a little bit more detail again,
342 00:57:44,310 --> 00:57:52,470 nuts in the same way we did with the buy. We had the Asian range in here, the initial drop, this doesn't have to happen. But when price rallies up out of the
343 00:57:52,470 --> 00:58:04,650 Asian range, many times you'll see a dip back down into it, giving you a optimal trade entry here and then rallies on up into a previous higher level support
344 00:58:04,650 --> 00:58:12,750 resistance level again mutsun. The same way we talked about for the buy scenario, this setup in here. Okay, this setup in here is what you're hunting.
345 00:58:12,960 --> 00:58:20,850 You don't want to see this. This right here is the Judas you anticipate this when the market structure is bearish When You're Expecting lower prices and
346 00:58:20,850 --> 00:58:32,460 higher timeframe. So this is how you fade rallies you sell rallies, you hear that so that market proverb, you know buy low, sell high and sell high and buy
347 00:58:32,460 --> 00:58:41,070 lower. Okay, well, you selling rallies and buying dips. This is what we do we expect this rally to take place and we don't chase it. Okay, if you're a scalper
348 00:58:41,070 --> 00:58:49,950 Sure, you can do that. I'm not a scalper. Okay, I'll teach you how to intraday trade with the London Express, okay, you're trying to be in here for an intraday
349 00:58:49,950 --> 00:58:58,350 run of several hours, not a couple of minutes. But if you see the optimal trade entry in here form, okay, once the price starts to break down, it may give you
350 00:58:58,350 --> 00:59:07,110 another secondary optimal trade entry and many times you'll see that unfold. But usually about this time, it's 10 GMT, and it's really on their way, okay. And
351 00:59:07,110 --> 00:59:18,300 it'll rally back up into a deep retracement using a London open high short term high, you can see that on a five or 15 minute timeframe. That's where you'll get
352 00:59:18,300 --> 00:59:27,330 your optimal trade entry for secondary entry or continuation pattern for the daily trend in the New York open session, and then it'll reach for the average
353 00:59:27,330 --> 00:59:37,170 daily range down here five, the average daily range. So the initial rally obviously again is assuming that we have a bearish market structure. Okay, the
354 00:59:37,170 --> 00:59:51,330 rally up is to Judas into a known key resistance level. Okay. Now this level could be pivots with trinities. It could be a big figure. It could be a previous
355 00:59:51,330 --> 00:59:59,820 week's high or low. It could be any time frame support resistance. Okay, look at the trading key support resistance levels video module, okay. It gives you all
356 00:59:59,820 --> 01:00:07,140 kinds have ideas of what levels you should be paying attention to. This also, okay, and we talked about Asian range earlier.
357 01:00:09,030 --> 01:00:22,980 When I learned Chris Lori's approach to applying the Asian range to forex. I learned debt if I used the previous week's Asian range for Friday, and that was
358 01:00:22,980 --> 01:00:31,470 the previous week's Friday's Asian range. And the beginning of the week, Asian rain Sunday and Monday. Okay, there's Asian ranges, extend those levels
359 01:00:31,470 --> 01:00:39,930 throughout the entire week, many times those levels act as support resistance level. And I don't know why. So don't ask me. I just noticed one of those little
360 01:00:39,930 --> 01:00:48,990 things in the marketplace. I'm not sure if crystal Laurie knows about it. But I just I applied to not only my intraday, in other words, by having these Asian
361 01:00:48,990 --> 01:00:56,970 range highs and lows. Okay. Laurie teaches to extend that throughout the entire day. Well, I took that premise and just said, Okay, well, what happens if I take
362 01:00:56,970 --> 01:01:05,490 it and apply it across the week on key days being the beginning and the ending of the week? And I'll let you decide whether or not there's any merit to it or
363 01:01:05,490 --> 01:01:11,460 not, because I think you're going to be smiling. When you see what happens. It doesn't matter what pair, okay, just look at the Asian range high and low on
364 01:01:11,460 --> 01:01:22,080 Monday, and Sunday. And on Friday and extended across the week. So you're using previous Friday. And this week's Sunday and Monday's Asian range high and low.
365 01:01:22,260 --> 01:01:31,290 Okay. And many times I've used the previous week, Sunday and Monday is Asian range high and low to to draw it across. But it's you'll be fascinated to see
366 01:01:31,290 --> 01:01:39,510 how how that many times creates dynamic support resistance levels organic, I don't know why. But obviously, there's a lot of dealing that goes on around
367 01:01:39,510 --> 01:01:48,330 there's levels and you know, somebody in years doing their business. But you'll be looking for obviously, price trading lower reaching for the average daily
368 01:01:48,330 --> 01:01:58,380 rains, again, not loading the average daily range indicator, until 10 GMT, which is 5am my time on New York. I live in Maryland. But speaking in terms of New
369 01:01:58,380 --> 01:02:07,440 York City guys understands East Coast time. And basically, you know, as we get short, we don't trail our stop loss inside of the daily range. We keep it at
370 01:02:07,440 --> 01:02:19,200 breakeven, and we take profits at logical areas of support and fib extensions. Okay, so by doing that, it's easy to absorb retracements on open portions of the
371 01:02:19,200 --> 01:02:26,070 initial trade, because you've already banked some profits. So even if it comes all the way back and takes us out breakeven, we've made money on the day. So
372 01:02:26,070 --> 01:02:34,110 that's when it gets to, you really want to see that your trading get to the level of not feel like you have to be right. And if the trades go against you,
373 01:02:34,140 --> 01:02:43,350 so what either didn't lose much or you take first profit or a portion of your profits. And if it goes to breakeven, it's never really breakeven now as you
374 01:02:43,350 --> 01:02:57,660 profit. Alright, obviously, London open sell signals obviously end up being just the catalyst for a market rate inertial profile. So if you see what looks like a
375 01:02:57,660 --> 01:03:04,620 classic sell off, okay, many times it will trade down into a higher timeframe, monthly, weekly or daily support level that you have to be mindful of okay,
376 01:03:04,620 --> 01:03:13,080 because this dip down here, the trading, intraday may be a part of a higher timeframe price leg that's maybe over here, okay, and then trades down, and
377 01:03:13,080 --> 01:03:21,060 there's not a higher level optimal trade entry by scenario. Okay, so all these things have to be considered. And it goes along with what we've discovered in
378 01:03:21,060 --> 01:03:31,200 the inside arrange webinar this year. And I know you probably heard me say this several times. But you can find it on the millionaires traders guild thread on
379 01:03:31,200 --> 01:03:41,190 baby pips, it's in, in a thread in the beginning of the posts, the very first post of that thread, you can see the link for that, that webinar. Again, it's
380 01:03:41,190 --> 01:03:50,580 inside the range. So there's concepts of using Fibonacci and where price structure moves from one high to load me a term high to low and working within
381 01:03:50,700 --> 01:04:00,360 predetermined ranges will allow you to expect or at least anticipate these types of events. So while this may be a profitable London, open sell scenario, don't
382 01:04:00,360 --> 01:04:12,210 be blind. Okay, to this unfolding, it could very easily sneak up on you if you're not looking at the higher time frame premise. So when do you avoid the
383 01:04:12,210 --> 01:04:23,070 one open? Okay, well, me specifically, I try to limit my on open trading around a few obvious reasons. If interest rate announcements are coming out, obviously,
384 01:04:23,070 --> 01:04:32,940 I'm on the sidelines waiting. And if there's a key speech, keynote speaker or a big deal, come comes across the news wires that hey, look, you know, so and so's
385 01:04:32,940 --> 01:04:42,990 gonna be talking about whatever economy and it has a direct impact to my specific pair, I won't trade. If it's a holiday, I won't trade. If it's
386 01:04:42,990 --> 01:04:51,240 approaching a holiday many times, I'll second guess trading. And if there's a global or economic event that takes place, it surprises the markets. I won't I
387 01:04:51,240 --> 01:05:00,780 won't trade that day, not even new, even New York. And obviously, if my weekly range objectives are achieved, there's no need. There's no For me to go in here
388 01:05:00,780 --> 01:05:03,420 and try to chase it, I'll just hopefully have a position that open.
389 01:05:04,920 --> 01:05:13,290 And occasionally, if the Asian range is greater than 50 pips, you know, I will just wait for the New York session to open. So anything greater than 40 kind of
390 01:05:13,290 --> 01:05:21,480 like puts me on the sidelines either expecting a real deep optimal trade entry back in the Asian range for London open, or others simply wait for the New York
391 01:05:21,480 --> 01:05:26,250 session because it's much easier to trade that and let the smarter people figure out what London's done.
392 01:05:33,660 --> 01:05:42,900 Alright, let's take a look at an example when average daily range doesn't matter, and how we can use that concept and maybe ferret out greater profit
393 01:05:42,900 --> 01:05:43,440 potential.
394 01:05:49,350 --> 01:06:01,950 Okay, folks, let's look at an example. How average daily range doesn't always equate to the actual higher low of the day. A lot of folks have a lot of
395 01:06:02,940 --> 01:06:13,230 preconceived expectations on one. And I think they're a little aggressive and outside the spectrum of reality. If it was like this all the time, obviously, it
396 01:06:13,230 --> 01:06:23,220 would be just everybody would be doing it. But if we are in sync with the higher timeframe premise, okay, and we're expecting a bullish move, and I'll zoom in
397 01:06:23,310 --> 01:06:35,160 and show you the intraday version of the swing we're looking at in the intraday action, and then watching, zoom out and I'll show you why this takes place. It
398 01:06:35,160 --> 01:06:43,260 just so happened today was an example of this very phenomenon taking place. The average daily range in here has been fulfilled today. That's what the indicated
399 01:06:43,260 --> 01:06:54,030 that you see in my videos and in this one as well, has already turned blue. Okay, so that means the average daily rate has been activated. The average daily
400 01:06:54,030 --> 01:07:06,030 range, okay, low is overlapping with the Asian range low here. So we have the Asian range here. Okay, it's a little less than 30 pips. So let's take a look at
401 01:07:06,030 --> 01:07:23,310 that. And you'll see that we have 28 pips for the Asian range. Okay, nice, healthy little angel range, nothing extrapolated or too large 40 or less is, in
402 01:07:23,310 --> 01:07:39,540 my opinion, a good Asian range. We have a optimal trade entry in here. Okay, that you could have utilized. Let's take a look at that. Okay, pull that up to
403 01:07:39,660 --> 01:07:48,900 the Asian range high. And we have perfect symmetry in here comes right down to the seven Langston tracing level. And reax breaks short terminal swing highs in
404 01:07:48,900 --> 01:07:59,280 here. So now if you've missed this one, you can utilize the smaller market structure swings in here. On the intraday, again, this is a five minute chart.
405 01:08:00,810 --> 01:08:11,070 And utilizing that one could arrive at a buy signal in here around the 160 30 level. Now if you're looking to buy that and take first profit here based on
406 01:08:11,070 --> 01:08:21,420 optimal trade entry rules, and then looking to take profits up here on the average daily range. You may see the average daily range comes in today at
407 01:08:21,480 --> 01:08:30,750 160 57. So if you're looking just to take profits up here, and old highs, there's nothing wrong with that don't collapse the entire position because
408 01:08:31,080 --> 01:08:37,830 you're trading with the higher timeframe direction. Okay, we're gonna look at that in a moment. But let's just watch what happens as market trades on
409 01:08:37,830 --> 01:08:50,880 throughout the day. rallies up gives you an opportunity to take profits here at the optimal trade entry swing. Price comes up blows out these highs. Okay, so
410 01:08:50,880 --> 01:09:04,050 yeah, this would have been a very handsome opportunity to take profits going nice little intraday, 20 pips, scalp, but look what happens. Here's your average
411 01:09:04,050 --> 01:09:13,500 daily range here. Okay, so if you're taking profits with the expectation, this is probably gonna be the high of the day, you miss out on all this. Okay, so
412 01:09:13,500 --> 01:09:23,250 when you're in when you're in sync with the higher timeframe premise, okay, watch what's sometimes can unfold, you have the range here. And what we're
413 01:09:23,280 --> 01:09:36,570 measuring here is the average daily range, the average daily range. When that breaks, you can sometimes see twice the average daily range, you can see how we
414 01:09:36,570 --> 01:09:46,230 have a little minor reaction here and still it continues to move on higher. Okay. So now watch what also you can do with Fibonacci. If you have the average
415 01:09:46,230 --> 01:09:55,920 daily range here and it's broken and you still hold on to a position and starts to tear starts to run even further in your anticipated direction. If you use
416 01:09:55,920 --> 01:10:09,120 that average daily range high, pull your fib down to it. Okay, you have the 200 extension in here, look how that overlaps very handsomely right there. Okay. So
417 01:10:09,120 --> 01:10:20,580 that would be a very nice objective to take profits. Okay? Nothing wrong with that. Add to that also, if you use your expansion tool,
418 01:10:26,730 --> 01:10:34,290 okay, just go here and grab your expansion, do the same similar type thing. But we're going to use the low here and it would just reverse it for cell signals.
419 01:10:34,830 --> 01:10:48,600 We're going to pull the Fibonacci expansion tool up using the average daily range range itself. Okay, let's get this off here. It may not be bothering you,
420 01:10:48,600 --> 01:11:01,350 but man, is it bothering me? The 200 expansion right here nailing the high the day. Okay, so you can see how these concepts they blend. They're rather generic,
421 01:11:01,350 --> 01:11:12,750 and we have used them for years now on baby pips and our YouTube channel. These are concepts that are repeatable when they go on and on and on and on. But do
422 01:11:12,750 --> 01:11:22,350 not be hung out with simply expecting the average daily rains to new bracket the market and can always just because the average daily rain suggested price may
423 01:11:22,350 --> 01:11:29,820 stop here, it may pause like it does here. And I'm sure there's a lot of traders in here that took this and said, Well, you know, this is probably it, we're
424 01:11:29,820 --> 01:11:39,060 hitting old resistance and there, there you go. Well, let's take a step back. Okay. And I'm going to do is zoom out to a 15 minute chart. Okay, you start
425 01:11:39,060 --> 01:11:52,050 seeing rather handsome price objectives. Okay, watch what happens here, we have this swing down to this swing here, we have the month 62 extension, up in this
426 01:11:52,080 --> 01:12:00,900 same general area here. So we have a lot of Confluence to suggest there's possibly something else up there in terms of profit taking. If we look at the
427 01:12:00,900 --> 01:12:16,560 larger price swing here on this fractal. We have this range here. And look what happens we have the 162. Extension, nailing the high again, so we have a
428 01:12:16,560 --> 01:12:26,760 confluence of a lot of factors, looking at 161 15 as a likely upside objective, which is well beyond the average daily range high here that's expected to simply
429 01:12:26,760 --> 01:12:38,340 using one tool by itself isn't enough, guys, you got to have a confluence of things suggesting that this may be in fact, going higher. And you see that
430 01:12:38,340 --> 01:12:49,620 happening here. So let's go out even further. And look at an hourly chart, you can see how we had made a longer term swing low here, moves on higher we
431 01:12:49,620 --> 01:12:59,250 consolidated and look what we've formed in here. Okay, do you see the ascending triangle here, ascending triangle, we have price bouncing up against that 160 50
432 01:12:59,250 --> 01:13:11,460 level, okay, at the same time, okay, at the same time, we expected the dollar to break below its support level, okay, because we have a descending triangle here.
433 01:13:11,640 --> 01:13:21,690 So we have symmetry between the two markets. Okay. So we're looking for the 7970 level, or 7950 levels respectively on the dollar. So we're expecting weakness on
434 01:13:21,690 --> 01:13:30,660 the dollar, it's going to translate into higher prices on the cable. And you see that unfold here. Okay. So when you're trading in direction of the higher time
435 01:13:30,660 --> 01:13:39,510 frame premise, don't be lulled into thinking that the average daily range is going to block the market from trading any further because it will not okay,
436 01:13:39,510 --> 01:13:49,770 it's just one tool. Okay? It's one premise to build your trading ideal. And now, there's nothing wrong with taking profits at the average daily range. But again,
437 01:13:50,100 --> 01:14:01,710 this is the reason why we just scale some out because we don't know if it's going to be halting, you know, at that price level or not continuing obviously,
438 01:14:01,950 --> 01:14:13,050 today's being a perfect example that so go over your charts and look at when the average daily range was broken, and was not able to hold price back and I think
439 01:14:13,050 --> 01:14:20,640 you'll be pleasantly surprised. It's always in the sense that you're trading with the hard timeframe premise. I just hope it's been a blessing to you. And
440 01:14:20,760 --> 01:14:23,160 sincerely Absolutely. I wish you good luck.