ICT-WENT-03.srt
Last modified by Drunk Monkey on 2021-06-10 09:21
| 1 | 00:00:12,179 --> 00:00:23,249 | ICT: Okay, folks, essentials to market structure. And this module is going to be really based upon the premise of looking towards helping you educate yourself in |
| 2 | 00:00:23,249 --> 00:00:37,889 | determining trade direction. This is probably one of the most reoccurring email, inquiries and posts that you see in the forums directed to me. It's my goal, |
| 3 | 00:00:37,889 --> 00:00:48,719 | obviously, to share a little further amplification on some of the concepts that I use in determining trade direction. And hopefully, this will be insightful for |
| 4 | 00:00:48,719 --> 00:01:01,469 | you. But what do we do when we sit down from the charts? What's the primary function as a trader? Well, you as a forex trader, you want to be finding your |
| 5 | 00:01:01,469 --> 00:01:10,349 | way through price. And as a new trader, I can understand how daunting this task may be, because there's so many different timeframes, you have your monthly, |
| 6 | 00:01:10,349 --> 00:01:18,959 | weekly, daily, four hour, one hour, 15 minutes or five minutes or one minute chart, you have tick charts, all these different timeframes, it's very |
| 7 | 00:01:18,989 --> 00:01:29,429 | bewildering sometimes, if y'all understand really what it is you need to be doing, and breaking it down breaking down price in a uniform structured way. So |
| 8 | 00:01:29,429 --> 00:01:38,939 | the first thing I'm going to really counsel you on is your primary objective is to know your timeframe that you're trading. Okay. And it gets back to what type |
| 9 | 00:01:38,939 --> 00:01:44,879 | of trader you're going to be, are you going to be a position trader? Are you gonna be a swing trader, a short term trader, are you gonna be a day trader or a |
| 10 | 00:01:44,879 --> 00:01:57,119 | scalper, I can't teach you how to find the correct style trader that's within you. That's all part of your personal makeup. So this module much in the same |
| 11 | 00:01:57,119 --> 00:02:05,489 | capacity my other modules have been, they're going to speak in general terms, okay, but it's going to give you enough insight for you to be able to determine |
| 12 | 00:02:05,519 --> 00:02:13,409 | what it is that you need to be focusing on for you to find the most optimal way of trading for you yourself, okay, because each of us are going to be different. |
| 13 | 00:02:14,519 --> 00:02:25,349 | As you grow and you mature as a trader, you may be multi timeframe. Based in terms of trading and onwards, I consider myself a dynamic trader simply because |
| 14 | 00:02:25,379 --> 00:02:39,779 | I can trade any one of these timeframes. Now I excel in the short term to swing trading area, but I can day trade, and I can scalp but I prefer not to, it would |
| 15 | 00:02:39,779 --> 00:02:47,939 | be my advice to you is if you can try to work within the short term to day trading in the beginning, because it's going to give you the most immediate |
| 16 | 00:02:48,059 --> 00:02:58,649 | feedback. And it's going to give you the confidence you need to be sticking to a plan because obviously, as a position trader, you don't have a whole lot of |
| 17 | 00:02:58,649 --> 00:03:07,499 | opportunities materializing you that frequently. Swing Trading again, same capacity, it's going to be a little oil spill a little while between each setup. |
| 18 | 00:03:07,499 --> 00:03:16,769 | So it's gonna be harder for a new trader looking to find themselves to wait between the signals and stick within that specific framework for trading. So |
| 19 | 00:03:16,769 --> 00:03:25,379 | short term trading and day trading and scalping this avoid that for now. But we will talk about how you can utilize these concepts for scalping button. Again, |
| 20 | 00:03:25,379 --> 00:03:34,019 | short term and day trades. If you are brand new to price action, those are very rewarding because they give you the immediate feedback, new traders sometimes |
| 21 | 00:03:34,019 --> 00:03:43,949 | need. So let's talk about what the professional perspective is, when we're applying market structure. Well, obviously, for position trades, this is going |
| 22 | 00:03:43,949 --> 00:03:53,489 | to be anywhere between three to as much as six to six months to a year in terms of duration. Now, I don't have a whole lot of types of trades like this, but |
| 23 | 00:03:54,540 --> 00:04:04,800 | every three to four months in the marketplace, whether it be in stocks or commodities or Forex, there is a specific swing that manifests itself and we |
| 24 | 00:04:04,800 --> 00:04:13,350 | talked about that in other videos and other teaching. I'm not going to cover that here. But if you are that type of trader, obviously the three timeframes |
| 25 | 00:04:13,350 --> 00:04:23,640 | that you would utilize to break down market structure for your particular market would obviously be monthly, the weekly and the daily, okay, monthly being your |
| 26 | 00:04:23,640 --> 00:04:33,720 | highest timeframe, your weekly being your midline or mid level timeframe. And then you have your daily that would be your short term. Now as a swing trader, |
| 27 | 00:04:34,050 --> 00:04:44,790 | okay, your premise for breaking down market structure will be comprised over looking at the daily, the four hour and the one hour chart, okay. Your setup |
| 28 | 00:04:45,030 --> 00:04:53,370 | will be based upon what you see on the higher timeframe the daily much in the same capacity for position trade. The monthly will be your position trade |
| 29 | 00:04:53,400 --> 00:05:02,310 | premise hours if we are considerably overbought and there should be some kind of a topping formation on a monthly chart If you wouldn't look to see market |
| 30 | 00:05:02,310 --> 00:05:14,370 | structure, break down on a weekly in daily the facilitate a short position, while on a swing trade model, you utilize that same measure of market structure |
| 31 | 00:05:14,400 --> 00:05:24,870 | by utilizing the highest timeframe for swing trades. And this approach would be the daily chart and then breaking that down into four hour chart, and then |
| 32 | 00:05:24,870 --> 00:05:37,500 | lesser price action study in the one hour chart. So you'll be timing on the one hour, you will be managing on the four hour. And your premise or the trade idea |
| 33 | 00:05:37,500 --> 00:05:45,960 | would be built upon the highest timeframe, which would be the daily chart, okay, and the swing traders model here. If you're a short term trader, obviously, the |
| 34 | 00:05:45,960 --> 00:05:55,950 | duration of time for these types of trades could be anywhere between one day to as much as a week or so. Swing Trading is about a week or more in terms of trade |
| 35 | 00:05:55,950 --> 00:06:06,720 | duration, I forgot to mention that. But for short term trades, you'll be using the four hour chart for your trade premise or your directional bias. And then on |
| 36 | 00:06:06,750 --> 00:06:17,070 | the one hour chart, that would be your trade management or mid level timeframe. And then your 15 minute chart would be utilized for your timing for entry and |
| 37 | 00:06:17,520 --> 00:06:27,960 | possibly looking for early reversal signs that your trade may be petering out and it's time to take profits. For day trades. Obviously, you can see it's the |
| 38 | 00:06:27,960 --> 00:06:38,460 | one hour chart and be highest timeframe, you will be managing your trade on the 15 minute timeframe. And your five minute chart will be utilized to enter. Now, |
| 39 | 00:06:39,000 --> 00:06:48,900 | it's not to say that you can't use a five minute chart on the short term swing and position trades for entry. Okay, I'm giving you a framework for at least |
| 40 | 00:06:48,900 --> 00:07:00,450 | having three timeframes across the spectrum of your trading. And how you break down market structure over these three specific timeframes for each individual |
| 41 | 00:07:01,050 --> 00:07:15,570 | trading model will give you again, the building blocks to flesh out what you need to see in terms of directional bias, okay. Just take a look. closer look at |
| 42 | 00:07:16,110 --> 00:07:29,040 | price, action and market structure. Now the keys to multiple timeframe market structure, okay are rather simple. Where's your focus, your focus should be on |
| 43 | 00:07:29,040 --> 00:07:41,430 | the highest of the three timeframes. trades will be managed by the highest or mid timeframes. Okay. In other words, if you are a swing trader, you're going to |
| 44 | 00:07:41,430 --> 00:07:53,730 | be utilizing that daily timeframe to manage or the four hour chart to manage your trade, okay, but the daily is going to be utilized to facilitate the trade |
| 45 | 00:07:53,730 --> 00:08:02,640 | premise. In other words, that's going to give you your directional bias, okay, the market structure that is one the daily chart that's framing your swing |
| 46 | 00:08:02,640 --> 00:08:12,180 | trades, okay? Once you get into a trade, you'd be managing that trade on a four hour time frame, and he would just use the respective timeframes we just talked |
| 47 | 00:08:12,180 --> 00:08:20,610 | about in the previous slide. And then your one hour chart would be used for timing purposes. Okay, so the shortest time frame in that |
| 48 | 00:08:21,000 --> 00:08:32,910 | regard for swing trading would be the 60 minute chart. So your entry signals would be derived from having studied the market structure on the daily and the |
| 49 | 00:08:32,910 --> 00:08:44,880 | four hour, then your one hour chart was facilitate the specific entry point. Okay, so in order to do your entry concepts and techniques on the one hour chart |
| 50 | 00:08:45,240 --> 00:08:55,470 | for swing trades, the highest probability trades are made in the higher timeframe direction, okay, now, there are going to be instances where the higher |
| 51 | 00:08:55,470 --> 00:09:07,710 | timeframe premise may be bullish, but you're approaching a key resistance level. So that may be trumped. So that's where we're gonna go back to the core |
| 52 | 00:09:07,710 --> 00:09:17,670 | essentials to technical analysis, that being support and resistance trumps everything. Okay. Without the understanding of key support resistance levels, |
| 53 | 00:09:18,480 --> 00:09:27,120 | you're not going to get to a directional bias, regardless of what trading model you're using position, day trading, whatever it is, if it's not framed on the |
| 54 | 00:09:27,120 --> 00:09:37,200 | premise of key support resistance levels, it's probably going to be a struggling point for you as well. Okay, so you have to go back to the core essentials to my |
| 55 | 00:09:37,200 --> 00:09:46,770 | concepts and just sound trading all together. Key support resistance levels are where it's all at, okay, without those, all of these lines and all these |
| 56 | 00:09:47,340 --> 00:09:53,940 | procedures that we're going to be covering here, and what we've covered in previous videos and such is going to do no good to you okay. So you have to |
| 57 | 00:09:53,940 --> 00:10:04,320 | understand what is a key support resistance level. So if you are looking at the highest time frame for your particular month, That'll, that will hopefully draw |
| 58 | 00:10:04,320 --> 00:10:14,160 | your attention to whatever key to support resistance level. At that point in price action. Obviously, you can always go out to a daily and weekly just as a |
| 59 | 00:10:16,590 --> 00:10:24,060 | catch all as far as whatever timeframe you're trading, if you just look at it daily and weekly in terms of support resistance, those will be helpful to you. |
| 60 | 00:10:25,110 --> 00:10:33,540 | Now, the market profiles will also assist you in market structure analysis concepts, that means are we in a trending market? Are we in a reversal pattern |
| 61 | 00:10:33,570 --> 00:10:43,620 | or formation or that type of profile in the marketplace? And are we in a consolidation, preparing for a breakout scenario? Okay, so, market profiling is |
| 62 | 00:10:43,800 --> 00:10:54,150 | essential to helping you in assisting you and measuring what the current market structure is. Okay, now, are we bullish or bearish? |
| 63 | 00:11:00,509 --> 00:11:10,259 | Alright, we're looking at market structure, we're referring to market structure. What are we speaking about? What's the what is it that we're trying to get at? |
| 64 | 00:11:10,649 --> 00:11:24,539 | Okay? Well, if you look at a price, rally up, and then price hitting a major resistance level, we're going to assume for a moment that this is your higher |
| 65 | 00:11:24,539 --> 00:11:32,279 | timeframe. Okay, and I'm going to keep it generic because that way you can apply it to whatever your higher timeframe is, based on the model traded you are |
| 66 | 00:11:32,309 --> 00:11:46,769 | aiming to be as price rallies up into what we perceive as a higher level, key resistance level. Price never moves in a straight line, okay, so there's going |
| 67 | 00:11:46,769 --> 00:11:56,369 | to be a consolidation of price move up another consolidation of price move up, and then as price makes it into this resistance level, then we would be |
| 68 | 00:11:56,369 --> 00:12:08,969 | anticipating a reversal. So when markets start to break down, taking out the short term, swing lows in here, this short term swing low, when the highest |
| 69 | 00:12:08,969 --> 00:12:17,879 | timeframe for your particular trading model. Once that breaks, this would be the catalyst for you to say, Okay, this is probably going to be an optimal trade |
| 70 | 00:12:17,879 --> 00:12:31,379 | entry based on the higher time frame chart of your profile. Okay, so for an example, let's just say that this is a monthly chart, and you're looking for a |
| 71 | 00:12:31,379 --> 00:12:39,689 | position trade. Okay, the monthly hits a key resistance level like this, and it comes down takes out a short term low and a monthly, we know now, that market |
| 72 | 00:12:39,689 --> 00:12:49,499 | structure has broken, okay, so we have a market structure shift right here. Okay. Now, we don't know what price is doing over here. This is all in the |
| 73 | 00:12:49,499 --> 00:12:57,179 | future. We're anticipating these types of events in terms of price action, but until we actually get there and starts trading, we can't deal with that yet. So |
| 74 | 00:12:57,209 --> 00:13:08,759 | it's all an anticipation in our anticipated anticipatory model. As far as our framework and thinking about price action, this is what we would expect to see |
| 75 | 00:13:08,999 --> 00:13:20,969 | once this structure has been broken. Okay. But as price starts to rally up, we don't anticipate seeing a break through this resistance level. Okay, if we |
| 76 | 00:13:20,969 --> 00:13:28,409 | arrived at this as a possible resistance level, we would expect the retracement for natural trade entry, but then we would zoom in in this area right here. |
| 77 | 00:13:29,039 --> 00:13:43,799 | Okay, on a weekly timeframe to hone in on more key shorter term timeframe, price levels. And then by zooming in, okay, we would possibly see a shorter term |
| 78 | 00:13:43,829 --> 00:13:55,439 | optimal trade entry or respective sell pattern to convince us even further that this is probably going to be a selling scenario. If we move down into a daily |
| 79 | 00:13:55,439 --> 00:14:05,639 | and see something even similar to that, okay, you would have all these nesting confluences of implied resistance levels, once a higher timeframe, market |
| 80 | 00:14:05,639 --> 00:14:15,719 | structure is broken down, then we would be able to position ourselves in sync with a top down approach with market structure. Okay. And then as price starts |
| 81 | 00:14:15,719 --> 00:14:27,029 | to trade down, this is the gray area all these areas where there's missing gaps. Okay, that's intentional. Okay. We don't know what's going to take place between |
| 82 | 00:14:27,059 --> 00:14:34,979 | the time where we see an entry point, and where we expect to see price get to in terms of our targets, and we'll talk more about that later on. But this is the |
| 83 | 00:14:34,979 --> 00:14:42,779 | gray area where you have to be comfortable with okay, because you don't know what's going to happen from your entry point. And your expected exit point. |
| 84 | 00:14:43,049 --> 00:14:49,139 | Okay. You don't know if it's going to go down there. Okay. You don't know if it's gonna reverse and take you out of the trade. Okay. But the overall |
| 85 | 00:14:49,139 --> 00:15:03,599 | framework, okay, or price structure. Okay, this is how market structure is built. Okay, this is a price rally and a decline okay. We have consolidation. If |
| 86 | 00:15:03,599 --> 00:15:12,329 | we expect to see some kind of a rally in here, something's bullish that we would expect to support that as price starts to rally up, okay? We could be utilizing |
| 87 | 00:15:12,329 --> 00:15:26,039 | our mid level or shorter term level timeframes to to see. bullishness, okay, we want to see support being held resistance being broken. Okay. And every time |
| 88 | 00:15:26,039 --> 00:15:34,649 | price starts to pull back and retrace in here, the market structure concept that you would be utilizing it would be to simply look for optimal trade entries. |
| 89 | 00:15:35,129 --> 00:15:43,919 | Okay, for buys, you would be looking for reflections to buy, you'd be looking for type two trend following bullish scenario. So in other words, in all this |
| 90 | 00:15:43,919 --> 00:15:55,019 | area here, you'd be looking for price finding support and resistance being broken. Okay, it's that it's that simple. That's the whole framework behind |
| 91 | 00:15:55,019 --> 00:16:00,629 | market structure. And as price rise up into another shorter term or me term resistance level in here, |
| 92 | 00:16:02,250 --> 00:16:12,930 | price will hopefully find some support, okay, but if it does start to break down, be comfortable with price coming back and blowing out previous lows in |
| 93 | 00:16:12,930 --> 00:16:22,740 | here. Okay, there may be an important load it's taking place, and trailing stop loss orders would be trailed up below that particular point. Okay. So as price |
| 94 | 00:16:22,740 --> 00:16:30,840 | dips back down, all that's going to do is give you another opportunity to get long. Okay? Now again, let's think for a moment, this is the higher timeframe |
| 95 | 00:16:30,840 --> 00:16:39,540 | premise. Okay, this is the highest timeframe chart when we start seeing this consolidation here, and we see the higher level resistance level because these |
| 96 | 00:16:39,540 --> 00:16:48,480 | are all noon in advance. This is why we have support resistance studies done. This is all part of our top down analysis seeing where price may be reaching |
| 97 | 00:16:48,480 --> 00:16:57,690 | for. So if we start seeing price rally up in here and then consolidate again, in this is another higher level key resistance level. If price continues to |
| 98 | 00:16:57,690 --> 00:17:08,700 | maintain support, and breaks above all these short term highs in here, the market structure implies that we could possibly see a leg from this low or |
| 99 | 00:17:08,700 --> 00:17:24,780 | whatever low would form back here to this high duplicated on a retracement here from this low to this high. The same thing can be said with market declines and |
| 100 | 00:17:24,780 --> 00:17:36,390 | reversals going along. Every time we see a consolidation, consolidations, you want to study these for shorter term, more dynamic support resistance levels. |
| 101 | 00:17:36,900 --> 00:17:48,900 | These areas are more easily tradable because they have discernible price levels, they're very clear. We don't know how it's going to take price, from these |
| 102 | 00:17:48,900 --> 00:17:57,390 | consolidations to the next consolidation, we don't know that we anticipate that gray area that's missing these little pieces of market structure that's missing. |
| 103 | 00:17:58,110 --> 00:18:10,680 | I left that out because I want you to think like this. Okay, it's, if it's a little confusing Now, I understand. But you apply the same general I don't want |
| 104 | 00:18:10,680 --> 00:18:23,340 | to say profile. But this diagram, okay, in other words, in terms of how I have priced lows, illustrated here, if you look at how price declines actually |
| 105 | 00:18:23,340 --> 00:18:34,590 | materialize, you'll start to see these lows form like this. And inside of these consolidations, and in every swing loaded forms, there's going to be a |
| 106 | 00:18:34,590 --> 00:18:46,050 | discernible optimal trade entries or reflection patterns, or generally fractal patterns. Okay, so you would apply these concepts, okay, with all the other |
| 107 | 00:18:46,050 --> 00:18:58,920 | concepts we've previously discussed. But looking at, obviously, a higher level key support level down here are the catalysts. Okay? So as price moves from a |
| 108 | 00:18:58,920 --> 00:19:09,090 | consolidation down into a new consolidation, much in the same capacity, we just saw with the bullish move, reaching up into a higher level resistance level, we |
| 109 | 00:19:09,090 --> 00:19:17,490 | could be seeing a consolidation in here with this higher level of support level down here. This would be where price may be reaching for. So if it's |
| 110 | 00:19:17,490 --> 00:19:27,090 | consolidating here, we could look for a move from whatever high forms here to this low, okay? duplicate it from this high or whatever high forms in this area |
| 111 | 00:19:27,360 --> 00:19:38,910 | down to this low. Okay, so, while this diagram is fragmented, okay, think of in terms of the market maker profiles that I just recently shared with you guys |
| 112 | 00:19:38,910 --> 00:19:48,180 | this year. You see that same premise here as well. I don't need to draw the lines in here. You can actually probably remember by the way the profile was |
| 113 | 00:19:48,210 --> 00:19:59,100 | given to you. You can actually see it in here. Okay. So as price is engineered to go lower down into a support level, ultimately to trade higher. This is the |
| 114 | 00:19:59,100 --> 00:20:06,480 | building blocks that we Work with, okay. Now, because we have to live in the gray area and not |
| 115 | 00:20:08,160 --> 00:20:16,860 | expect a simple black and white premise to trading. When we see consolidation here, and price moved down to a new area of consolidation and price moves down |
| 116 | 00:20:16,860 --> 00:20:24,300 | to a new cup area consolidation. And then we have short term breaks on market structure. Okay. And then once we have a shift in market structure right here, |
| 117 | 00:20:24,660 --> 00:20:32,430 | as price trades down in that support level, again, this is all assuming this is the highest level of your three timeframes that you're trading with, for your |
| 118 | 00:20:32,430 --> 00:20:41,730 | particular trading model. When you see this shift in market structure here, we would anticipate seeing a bullish move higher. But here's where we enter a new |
| 119 | 00:20:41,730 --> 00:20:54,300 | level of gray. When we move into this new consolidation in here, this may not always translate into even higher prices going up like we have here implied, it |
| 120 | 00:20:54,300 --> 00:21:03,750 | could be just reaching up to go back to this range from this old high to this low member inside the range concepts. Okay, so you have to have that in mind. So |
| 121 | 00:21:03,750 --> 00:21:14,250 | that's why if you're going to be getting long down here, expect to see some type of profit taking here. Right. And you would be able to see that utilizing your |
| 122 | 00:21:14,250 --> 00:21:25,020 | mid level chart. Okay, for your swing projections. Okay, and we'll talk about that more as we go on. But generally, as you see price come down in here, every |
| 123 | 00:21:25,020 --> 00:21:34,320 | time price retraces and gives you new optimal trade entries. That's what you're looking for, you want to see price holding support, breaking resistance, okay, |
| 124 | 00:21:34,350 --> 00:21:45,120 | on this side of the support level being found. But as we're trading down into that support level, we're anticipating market structure to break lows, and then |
| 125 | 00:21:45,120 --> 00:21:55,800 | find resistance, break lows, find resistance, break lows, find resistance, okay? So every new consolidation, if we're expecting price reaching down to a higher |
| 126 | 00:21:55,800 --> 00:22:04,050 | level support level, okay, when our highest level chart, that's why we do our analysis on the highest level, because you want to see where price is probably |
| 127 | 00:22:04,050 --> 00:22:13,860 | reaching for. And by seeing where the highest level chart in our particular trading model is reaching for. Again, we don't know for certain that they're |
| 128 | 00:22:13,860 --> 00:22:22,380 | always going to get there. But if you look in these higher level charts, it's going to give you the highest probability in terms of success. If price doesn't |
| 129 | 00:22:22,380 --> 00:22:33,300 | get to these particular points, and we start seeing early market, shifts in market structure, this could be a catalyst for you know, another type of trade, |
| 130 | 00:22:33,540 --> 00:22:41,700 | okay, we could possibly get along in here and maybe even reach up into the range from the high to this low here, that may be a means of profitability, it should |
| 131 | 00:22:41,700 --> 00:22:55,230 | be a good reward to risk scenario here, okay, three to one could still exist within that framework, and that framework of price action, okay. But again, even |
| 132 | 00:22:55,230 --> 00:23:08,850 | if that happens, we could still take some short term trades in here. But that may be a very, very short term bias, only taking you up to a higher level bias |
| 133 | 00:23:08,850 --> 00:23:18,330 | to get lower support levels here taken out, okay, in other words, it used the, you're gonna have to blend some concepts here, the inside the range concepts, |
| 134 | 00:23:19,080 --> 00:23:31,320 | simply looking at lower lows and lower highs. Okay, if we do get a short term bounce in here between the high that's formed here and the low here. This could |
| 135 | 00:23:31,320 --> 00:23:36,270 | be creating another trade entry to get that fulfillment of this lower level support level down here. |
| 136 | 00:23:42,089 --> 00:23:54,299 | Now, again, we've seen this diagram before, assuming that we have a high up in here reaching into resistance. As price breaks this short term low here the |
| 137 | 00:23:54,299 --> 00:24:04,979 | market structure is broken. So as price starts to retrace, every time it retraces we're looking for new selling opportunities. But if we see a previous |
| 138 | 00:24:04,979 --> 00:24:18,419 | swing, as we see here, see this price swing here? Okay, if this levels taken out here, if we get a retracement or another additional sell signal, this is where |
| 139 | 00:24:18,419 --> 00:24:29,999 | we use swing projections. Just on price. We're not using Fibonacci you can, but just looking at simple price action alone, this low to high once it's broken, |
| 140 | 00:24:30,359 --> 00:24:41,339 | you can start taking this same measureable swing from this point here down to that same level and projected lower. Okay, and you get somewhere in this area |
| 141 | 00:24:41,339 --> 00:24:53,819 | here. Now I purposely allowed the diagram to be a little bit farther because I teach to exit on a trade before the actual objective is met. Okay, so every time |
| 142 | 00:24:54,059 --> 00:25:03,269 | we see a broken swing, okay, this is a swing that's broken here in the old system. Here are whatever load it would have formed in here. I'm assuming that |
| 143 | 00:25:03,269 --> 00:25:16,049 | you can see this as, as a swing. When it's broken right here, we went below it here, if we retrace back into it, okay, I'm also purposely drew this a little |
| 144 | 00:25:16,049 --> 00:25:30,089 | bit past what would be expected as resistance. I've purposely allowed this to move beyond this low here. To illustrate how support resistance can be. Gray as |
| 145 | 00:25:30,089 --> 00:25:38,369 | well, it's not black and white, you're going to have to allow some flexibility with price. So when it starts to pull back deeper, okay, this still can set up |
| 146 | 00:25:38,369 --> 00:25:48,599 | the optimal trade entry. Okay, and while this isn't the exact level price was able to stave off of rally, it still was working within the previous range here, |
| 147 | 00:25:49,079 --> 00:25:59,459 | and this pie here as well. So we're still within a bearish market structure. So don't be lulled into thinking this is going to be a long to go higher. Assuming |
| 148 | 00:25:59,459 --> 00:26:09,389 | again, this is a higher level of resistance level. And again, every little short term retracement here could be a catalyst for an additional entry using our |
| 149 | 00:26:09,389 --> 00:26:20,189 | smallest of the three timeframes. Again, this is all modeling off of the highest timeframe. Okay, and then assuming once we get this broken down, this swing low |
| 150 | 00:26:20,189 --> 00:26:29,969 | here broken, we could utilize the mid level chart for additional entries. And or managing of a position that's already been assumed based on the highest of the |
| 151 | 00:26:29,969 --> 00:26:42,179 | three timeframes. Now as price also breaks down these swings are just swing up once it's broken, okay, this is an engineered swing, okay? You see this in price |
| 152 | 00:26:42,179 --> 00:26:53,189 | action all the time. Okay, it's a measured move, very simple, taking this low to this high, whatever that range is subtracted from that same point here. And |
| 153 | 00:26:53,189 --> 00:27:05,339 | projected lower. Okay, that's the measured swing, here is a measured leg move, you have the high down to a low here, price starts to retrace. And here, we |
| 154 | 00:27:05,339 --> 00:27:16,619 | could see this as an intermediate term price swing guy or price leg. So we have a measurable swing here that we can use for projections, then we also have a |
| 155 | 00:27:16,619 --> 00:27:27,599 | measurable lake. Okay, so we had the first leg and price down here. And we retraced back, utilizing the framework that's based on this swing up. Okay, so |
| 156 | 00:27:27,599 --> 00:27:37,769 | we're blending two concepts here, a swing that's broken, okay. And within a bearish market structure, then we also have retracement back into a previous |
| 157 | 00:27:37,799 --> 00:27:48,119 | support broken, it should act as resistance, okay. And notice how this low here a chai that more or less imply that phrase could be reaching for even a shorter |
| 158 | 00:27:48,119 --> 00:27:58,199 | term support that's broken now as resistance. So what might look real clear and discernible on the charts, it may not be as clear cut as that. But we would |
| 159 | 00:27:58,199 --> 00:28:09,059 | expect this to be an enemy at term retracement for a new leg down. And that's when you would expect to see the high too low here on this leg. Repeat repeated |
| 160 | 00:28:09,059 --> 00:28:11,519 | and projected from this high waveforms here. |
| 161 | 00:28:13,109 --> 00:28:24,959 | Down here, and that would look similar to what we'd expect when you see me a term highs and lows. mid term high is obviously a high, there has lower highs on |
| 162 | 00:28:24,989 --> 00:28:37,739 | either side of it. Okay, and any near term low is a low that has two higher lows on either side of it. So it's very easy to see and simply looking at your |
| 163 | 00:28:37,739 --> 00:28:48,239 | candles and your bars on your respective timeframes. And when you see these, note them, okay. And by noting them, you'll have whatever ways you want to have |
| 164 | 00:28:48,239 --> 00:28:56,489 | it. You know, I'm delineating and denoting that with these blue circles here, it could be anything on your charts, you could have stars, you could, you could |
| 165 | 00:28:56,489 --> 00:29:04,979 | just you type, intermediate term high, whatever, you can put the little arrows on it, whatever it is that you use to identify that that's your way of doing it. |
| 166 | 00:29:05,519 --> 00:29:15,539 | But it's important you understand where they're at. And when they start to nest out like this, okay? You can classify enemy a term to now long term because if |
| 167 | 00:29:15,539 --> 00:29:27,329 | we have lower highs on either side of the it, okay, this would classify this as a long term high. That would also allow you to expect to see much longer term |
| 168 | 00:29:27,329 --> 00:29:39,419 | price swings, okay? So by nesting out and marking off your swing highs and swing lows on your respective timeframes, you start to build a framework that's needed |
| 169 | 00:29:39,419 --> 00:29:51,029 | to be able to discern if you're in an area term, or short term price swing in within your market structure. Now that lag that we were talking about earlier, |
| 170 | 00:29:51,329 --> 00:30:01,229 | can be seen here by having that immediate term High Noon ID. So this is a aimia term, price leg. And then here's your immediate term retracement. Okay, and then |
| 171 | 00:30:01,229 --> 00:30:10,799 | you would see, obviously, the next leg down would be replicated. So you can see the range between this low to high is exactly what you see here, causing you to |
| 172 | 00:30:10,799 --> 00:30:18,959 | expect or anticipate price movement back here. If you're in a trade still, once, you've retraced you can expect to hold on to that trade to get back down to |
| 173 | 00:30:18,959 --> 00:30:27,509 | these levels here, which would obviously hopefully be a higher level support level to also converge and have a confluence of reasons to expect to take some |
| 174 | 00:30:27,509 --> 00:30:28,199 | profits there. |
| 175 | 00:30:34,589 --> 00:30:47,279 | Now, by having all these things in the forefront of your mind having specific price legs and price swings, and how they nest together, it's important you |
| 176 | 00:30:47,279 --> 00:30:55,139 | understand that the framework of your market structure is derived from the highest level the three timeframes you're trading with. That's where your, your |
| 177 | 00:30:55,139 --> 00:31:08,759 | the framework or the or the basis of your trade is built upon. Your mid level chart is used to zero down into a smaller timeframe expecting to find support |
| 178 | 00:31:08,759 --> 00:31:16,109 | resistance levels that may not be discernible and your highest timeframe, then your lowest timeframe is used for your entry. And we're talking about that |
| 179 | 00:31:16,109 --> 00:31:26,549 | specifically here, assuming we've built the premise of market structure, and assuming that it's bullish, okay, everything we're talking about here would be |
| 180 | 00:31:26,549 --> 00:31:36,209 | obviously reverse for selling scenarios. But assuming we have a bullish market structure, okay, we're a swing trader, let's say for a moment that our highest |
| 181 | 00:31:36,599 --> 00:31:47,489 | timeframes suggest that we have a bullish market structure underway, we've traded off of a higher level, support level. And price has given us a broken |
| 182 | 00:31:47,819 --> 00:31:56,279 | market structure to the upside, in case there's going to market structure shift, short term highs had been broken on our highest level timeframe chart, our mid |
| 183 | 00:31:56,279 --> 00:32:06,329 | level timeframe has allowed us to zero and define a key support resistance level. Now, we have this higher level key support resistance level, that's also |
| 184 | 00:32:06,329 --> 00:32:15,749 | converging with our mid level support resistance level. Okay, and that same support resistance level may be a confluence of maybe a pivot, a trinity level, |
| 185 | 00:32:16,049 --> 00:32:22,889 | okay? It could be a pattern that overlaps with that specific debt level. Okay. And |
| 186 | 00:32:24,270 --> 00:32:38,520 | we now have a bias, okay, this bias is bullish, it does not mean every single day, you're going to get us a trade that's going to materialize as a bullish |
| 187 | 00:32:38,520 --> 00:32:48,750 | move and see profitability. If it was, if it was just that simple guys, everybody would be multimillionaires and be we'd be we, we'd all be Warren |
| 188 | 00:32:48,750 --> 00:33:01,200 | Buffett's super rich. So obviously, you know, it's it's not that easy. You have to have some discernment and allow for some failure, because it's going to |
| 189 | 00:33:01,200 --> 00:33:11,040 | happen. But assuming that we have that, that premise, okay, our bias is to buy, it doesn't mean that traders can't make money going short, this specific day or |
| 190 | 00:33:11,040 --> 00:33:23,070 | timeframe. Okay, it just means that you are going to stick to being a bull at this particular day, four particular timeframe. Okay. So with that, and with |
| 191 | 00:33:23,070 --> 00:33:32,100 | that in mind, we always go back to our key premise of trading within kill zones. Okay. So you want to be doing your entries in your kill zone times, London, |
| 192 | 00:33:32,100 --> 00:33:42,780 | open, New York, open, London, close or Asia. Okay, but assuming we have already arrived at our time of day when we're going to be trading, okay, we already |
| 193 | 00:33:42,780 --> 00:33:51,750 | understand that the kill zone when it's going to begin, we already have our key support resistance level already identified. And we know where price should get |
| 194 | 00:33:51,750 --> 00:33:59,490 | to before we do anything. And that's going to be basically this little area right here. So when we're going to be seeing price, hopefully, at some point, |
| 195 | 00:33:59,490 --> 00:34:08,400 | move down to that level here. This is our action point. This is where we take action, we do the entry here. Now it could be on a limit basis, or it could be a |
| 196 | 00:34:08,400 --> 00:34:20,370 | market order, but we're utilizing time price theory. Okay. So this is what it looks like in in your mind. There's nothing happening yet. you anticipate these |
| 197 | 00:34:20,370 --> 00:34:31,770 | events unfolding within a specific time of day with a specific bias in mind. Okay? You want to see these things line up? And I think what happens is you guys |
| 198 | 00:34:31,800 --> 00:34:41,190 | send me emails you talk about on the internet posting on baby pips forums. I don't know what the bias is for today. here's here's the secret every day. The |
| 199 | 00:34:41,190 --> 00:34:52,500 | bias is both directions. Every day the bias is both directions. Think about that. There's traders making money going long and short that day. But you had to |
| 200 | 00:34:52,770 --> 00:35:00,270 | decide on what it is that you're trading based on your timeframe in your profile. Okay as a trader Are you a short term trader swing trader Are you a |
| 201 | 00:35:00,270 --> 00:35:11,580 | position trader, and you're looking for the bias that you're holding to line up with price action? Okay, you can't force price action to do what you want to do, |
| 202 | 00:35:11,820 --> 00:35:21,360 | you can only get yourself in sync with what price may be doing and allowing you a ride. Okay, so with that assumption, we're looking at price here and with the |
| 203 | 00:35:21,540 --> 00:35:30,930 | bullish premise that we would be expecting to see higher prices if we get down to this support level. Okay, so we've established that the higher timeframe of |
| 204 | 00:35:30,930 --> 00:35:41,670 | the three timeframes we use for market structure study is now bullish. Okay. We assumed that we have a very respectable support level down here. Okay. So if |
| 205 | 00:35:41,670 --> 00:35:48,840 | price trades back down to that level, within a kill zone, we're going to be taking action here to buy, okay, and all we simply do at that point is you wait, |
| 206 | 00:35:49,140 --> 00:35:56,280 | you wait until the kill zone starts. And when price gets to a specific point, you use whatever entry technique or concept you're going to be utilizing for |
| 207 | 00:35:56,280 --> 00:36:06,900 | your trade entry, which could be optimal trade entry. It could be reflection, it could be a Grail, it could be a stinger, it could be any, any one of the trading |
| 208 | 00:36:06,900 --> 00:36:14,460 | patterns that you're utilizing, but it's happening at a key support resistance level, with the higher time frame of the three front timeframes you use for |
| 209 | 00:36:14,460 --> 00:36:23,250 | market structure, giving you your buy. So when you have that this is your action plan, this is what you do. You don't do anything else. Okay? This could be a |
| 210 | 00:36:23,250 --> 00:36:31,890 | sell pattern here. Okay, for someone that's very short term trader, okay, and trades down. In days, they've made money from this point here to hear, that's |
| 211 | 00:36:31,890 --> 00:36:45,000 | not your trade. Okay? So don't try to force more out of the concept and it's intended, okay, you're just simply looking for a bias for your style of trading, |
| 212 | 00:36:45,360 --> 00:36:52,890 | okay? It doesn't mean that you're going to be right all the time. Okay. So take that out of the equation, all you're doing is looking to get yourself in sync |
| 213 | 00:36:52,890 --> 00:36:57,840 | with whatever price action is doing, based on your premise or your style of trading. |
| 214 | 00:37:03,240 --> 00:37:15,720 | Alright, obviously, this is a very simple approach to dealing with directional bias. But it's meant to help you avoid deal for complication. That tends to |
| 215 | 00:37:15,720 --> 00:37:23,940 | happen with traders, okay. And it's usually the new traders that try to add all these things to it and squeeze all the tools into giving them a directional bias |
| 216 | 00:37:23,940 --> 00:37:32,790 | with the expectation falsely, I'll be it, that they're going to always know what direction the marks gonna move every single day. And I'm going to tell you guys, |
| 217 | 00:37:32,790 --> 00:37:43,590 | I've been doing this almost 20 years, and I don't get it right, every single day. Okay, you know what the secret is to my trading? I simply wait until |
| 218 | 00:37:43,650 --> 00:37:52,860 | everything lines up, that I like to see where the majority of all my tools, not all of them, the majority of the things that I'd like to see, based on my |
| 219 | 00:37:53,250 --> 00:38:03,870 | understanding what markets suggesting to me, or what profile are we in? Are we overall ripe for reversal? Are we in a trending condition? Are we in a |
| 220 | 00:38:03,870 --> 00:38:13,650 | consolidation area where, you know, I don't want to be taking any kind of trading, you know, with the expectation that we're going to have a trending type |
| 221 | 00:38:13,650 --> 00:38:23,430 | of event unfold, because we're gonna be working within a large consolidation. I use that as my building blocks. And then by using the market profiling to give |
| 222 | 00:38:23,430 --> 00:38:30,780 | me the initial clue as to where we may be trading, then I've started looking at actual individual market structure concepts on the three timeframes that I use |
| 223 | 00:38:30,990 --> 00:38:41,550 | for whatever type of trading I'm doing at the time. Because I am dynamic, I move from one timeframe, or profile trading to another one week, I may be simply a |
| 224 | 00:38:41,550 --> 00:38:53,550 | day trader. In other weeks, I'll be a short term trader. And I wish there's a way for me to teach that premise from moving from one dynamic to another. I |
| 225 | 00:38:53,550 --> 00:39:04,680 | can't. So that may be disappointing to you. But this is a limitation on me as a mentor, I just I don't know how to communicate that. But I can give you concepts |
| 226 | 00:39:04,710 --> 00:39:14,310 | and approaches to do specific styles of trading. And you just have to wait for the opportunities where price action gives you that sweet spot in terms of being |
| 227 | 00:39:14,310 --> 00:39:23,580 | able to apply it. Okay. So by selecting a directional bias, and this does not guarantee profitability, it's very important you understand that, nor does it |
| 228 | 00:39:23,580 --> 00:39:33,600 | guarantee accuracy in either your trade direction and or your trade results. One traders bias may be bullish, okay. They're looking for buys in that may exist |
| 229 | 00:39:33,630 --> 00:39:44,550 | inside the realm of another traders sell bias. They both can be correct and make money and even see both their respective profit objectives achieved. They both |
| 230 | 00:39:44,550 --> 00:39:55,050 | can be wrong and make money despite their respective profit objectives not being achieved. Again, it's not being about being, quote unquote, correct. It's about |
| 231 | 00:39:55,050 --> 00:40:03,540 | being profitable. However, they both could simply lose money and neither trade ideas differentiation, there is no black and white. It's very important. You |
| 232 | 00:40:03,540 --> 00:40:15,180 | understand that, as a trader, you must enter the gray and be comfortable with the less than perfect visibility trades with the foresight that you're expecting |
| 233 | 00:40:15,180 --> 00:40:26,010 | don't exist. Nobody has a crystal ball. I don't have it. I'm still trading on the probabilities, not the perfect scenario. There's no perfect scenario, okay? |
| 234 | 00:40:27,210 --> 00:40:37,740 | You, as a trader will see trades materialize, that will provide you plenty of profit taking potential. live there. Don't expect 100% it's not going to happen. |
| 235 | 00:40:37,830 --> 00:40:48,270 | Okay, cuz I guarantee you, the only thing 100% is going to happen is you're going to go nuts, expecting an impossibility. Find your timeframe as a trader, |
| 236 | 00:40:48,810 --> 00:40:57,480 | determine the market structure given for that timeframe. Trade within that respective market structure and perform your targeting on the highest end mid |
| 237 | 00:40:57,480 --> 00:41:07,560 | level timeframes. And I promise you, you'll have more than enough trades laid at your feet. But it's not about trading every day. And it's not about capturing |
| 238 | 00:41:07,590 --> 00:41:18,720 | 1000 pips a month, okay? It's about consistently harvesting profits out of the marketplace, keeping risk low and your action level low. Don't try to trade a |
| 239 | 00:41:18,720 --> 00:41:28,230 | whole lot. Keep your trading controlled. That way you're going to control your emotions, your expectations will be kept realistic, and you're going to live |
| 240 | 00:41:28,230 --> 00:41:41,010 | comfortably in the gray. Okay, folks, we are looking at the British Pound USD, or what is commonly referred to in my videos and throughout the Forex industry |
| 241 | 00:41:41,010 --> 00:41:52,680 | as the cable is a monthly chart. Okay, and we're going to be discussing primarily the approach to developing your directional bias and |
| 242 | 00:41:53,940 --> 00:42:02,370 | looking for trades in that direction for all facets of your trading, whether it be position trading, swing trading, short term trading, or day trading, or even |
| 243 | 00:42:02,370 --> 00:42:16,590 | the scalper. Again, I like to preface all these videos with the fact that while I do comment, rarely on scalping, and you'll hear it mentioned in this video, I |
| 244 | 00:42:16,590 --> 00:42:24,990 | do not advocate that type of trading simply because it's too short term. For my personal taste. That's not to say that you can't make money. It's not to say |
| 245 | 00:42:24,990 --> 00:42:37,530 | that you can't find consistent setups with these concepts. For scouts, it just means that it's just not my forte, I waste a lot of time and, and lost a lot of |
| 246 | 00:42:37,530 --> 00:42:47,820 | mine doing that, you know, in the beginning until I really found out what I was doing. And I just want to add that every time I mentioned it because I'm |
| 247 | 00:42:47,850 --> 00:43:00,660 | actually strongly against scalping. And now my view of scalping is anything less than 20 pips, so if you can't make 20 pips out of the move, it's by my |
| 248 | 00:43:00,660 --> 00:43:13,830 | definition, a scalp, okay? So anything 20 pips or greater is what we're looking for. So that which divides my scalp. You know, 2030 pips is my scalp anything |
| 249 | 00:43:13,830 --> 00:43:24,480 | greater than that's a short term trader day trade. And then obviously moving higher up in the realm of PIP hauls greater than 100 pips, that's more or less |
| 250 | 00:43:24,510 --> 00:43:34,050 | in my forte, I like looking for those types of moves. So even if I'm wrong, hopefully I can get 50% of the anticipated range of 100 pips I'm looking for |
| 251 | 00:43:34,050 --> 00:43:44,130 | which is about 50 pips or so. And, again, a lot of people are shocked when I tell him that that's really all I'm looking for, for the week, 50 to 75 pips a |
| 252 | 00:43:44,130 --> 00:43:53,100 | week, that's all I'm looking for. So, again, have that in your notebook, you do not need a lot of pips to make a lot of money, you don't need a lot of pips, to |
| 253 | 00:43:53,100 --> 00:44:01,800 | build wealth, you just need time and consistently doing the same thing over and over again, that works. Okay. And we're gonna be talking about all of the |
| 254 | 00:44:01,890 --> 00:44:13,290 | concepts that we've discussed over the last three years on baby pips, all of the videos that discussed with top down analysis, you have to revisit those guys, if |
| 255 | 00:44:13,290 --> 00:44:26,220 | you haven't studied those and haven't really ingrained those primary steps as a technical analysis. trader, you have to go back to that, okay, because that's |
| 256 | 00:44:26,220 --> 00:44:36,450 | the route to successful trading, you have to have top down perspective. to limit the amount of false signals you would just inherently find if you just were |
| 257 | 00:44:36,450 --> 00:44:43,860 | staring at the lower timeframes one in five minute charts, which is predominantly what most novice and or new traders do, because they think they're |
| 258 | 00:44:43,860 --> 00:44:52,920 | closer to the market so therefore, their new trades are gonna be easier to see. And what's ironically seen is that they go away with thinking that forex and |
| 259 | 00:44:52,920 --> 00:45:04,470 | trading by any asset classes too difficult or by their definition, that they lose their accounts. Less than 90 days, typically, they'll say that no one ever |
| 260 | 00:45:04,470 --> 00:45:12,660 | makes money. And hopefully you guys can see that that's not entirely true. There's people out there that do make good livings. And my goal is to help you |
| 261 | 00:45:12,660 --> 00:45:21,120 | do that. Okay? So, again, I'm not a CPA, I'm not licensed to give you trade advice. These are just ideas to help stimulate some decision making on your |
| 262 | 00:45:21,120 --> 00:45:32,070 | part. Yeah, everything we're discussing in these videos, you have to take the responsibility, and the profits and or losses are yours, not mine. And I don't |
| 263 | 00:45:32,070 --> 00:45:39,780 | want to credit for your winnings, I don't certainly want any credit for your losses. So practice in a demo account, you build the confidence that you need, |
| 264 | 00:45:39,780 --> 00:45:48,330 | and you determine whether or not these are going to be valuable concepts, or advantageous for you to use with real money. And if you're, if you're |
| 265 | 00:45:48,330 --> 00:45:53,580 | successful, great, I'd love to hear your story. But don't thank me for it, because I'm the one executing the trades. |
| 266 | 00:45:54,840 --> 00:46:04,560 | Alright, so let's take a look at our first trading style and how we can arrive at a top down approach. And it's gonna be similar to a lot of the higher |
| 267 | 00:46:04,560 --> 00:46:13,770 | timeframe views here. But I'm really bringing you back to what's essential in terms of having a directional bias because I get a million emails, okay. And you |
| 268 | 00:46:13,770 --> 00:46:21,990 | see it always creeping up on the forums. You know, how do I know which way to trade? You know, if I just knew that I'd make a million dollars every year? |
| 269 | 00:46:22,170 --> 00:46:33,270 | Okay. And it's, it's a lot easier than you think, guys. And it's unfortunate. You have to overcomplicate it. And I'm not laughing at you because I did the |
| 270 | 00:46:33,270 --> 00:46:44,760 | same thing. Okay, as SMP trader, years and years ago, I had that same thinking, if I could just get to the point of directional bias, what should I be doing |
| 271 | 00:46:44,760 --> 00:46:53,880 | today, if I just knew that, I'll be alright, and I was just trying to catch in two, three handles intraday for the s&p, and, you know, in our $500 per point, |
| 272 | 00:46:54,270 --> 00:47:04,380 | that's a good living, because a couple of weeks, so if you are in that rut in your trading, or if you just started and you've always wondered, you know, how |
| 273 | 00:47:04,380 --> 00:47:15,900 | do technical traders arrive at you the bias for today, you know, whether they be a bull or bear for the day, okay, and I kind of want to more or less take you |
| 274 | 00:47:15,900 --> 00:47:25,530 | away from that definition of weather, are you a bull or a bear? Okay, you're neither, okay, you're neither one because you want to be able to go into the |
| 275 | 00:47:25,530 --> 00:47:37,170 | marketplace and just arrive at what you need to be doing at the time. You trade. Okay, whatever that timeframe is, whatever that that framework and onwards, if |
| 276 | 00:47:37,170 --> 00:47:46,080 | you're a position trader, which is what we're starting with your trade, you're going to be derived from finding the monthly, weekly and daily market structure, |
| 277 | 00:47:46,110 --> 00:47:55,320 | key support resistance levels, and that's going to be your top down approach, okay. But even if you're not a position trader, you still want to start here, |
| 278 | 00:47:55,320 --> 00:48:03,960 | because it's going to be highly advantageous to you as a trader, even if you are a day trader or a scalper, because you're going to see a lot of the moves that |
| 279 | 00:48:03,960 --> 00:48:19,710 | are really wildly explosive moves one way intraday, they are always, always seen with the institutional sponsors, if that's being seen with the higher timeframe |
| 280 | 00:48:19,710 --> 00:48:30,510 | directional bias. So it's important that you understand that it's not a boring or waste of time for you to be doing analysis on these higher timeframe charts, |
| 281 | 00:48:30,510 --> 00:48:40,320 | because it's essential for you to have this perspective, if you really want to be catching and ferreting out these explosive moves in the marketplace, because |
| 282 | 00:48:40,530 --> 00:48:51,990 | when you get ahold of one, it's absolutely mind blowing how fast you can build up pips get really handsome, intraday wins. And it feels wonderful to be on the |
| 283 | 00:48:51,990 --> 00:49:00,030 | right side of the market. And if you could do that consistently over a period of time, even if you're 50% on time, right, and you have good risk management |
| 284 | 00:49:01,050 --> 00:49:09,780 | protocols, you will absolutely weather the storms of being wrong half time. And I think by doing this, you'll find that you're trading actually a little bit |
| 285 | 00:49:09,780 --> 00:49:22,950 | more accurate than 50%. And you can be wildly profitable with just 33% accuracy. But if you have 50 to 70%, you enter a new realm in terms of profitability and |
| 286 | 00:49:22,950 --> 00:49:33,060 | and obviously, once you have a higher timeframe perspective and you are more dynamic with your lower timeframe analysis concepts, it's not on attainable to |
| 287 | 00:49:33,090 --> 00:49:42,450 | reach the 70 to even 90% accuracy level. Now, obviously, you'll go into a tailspin once in a while, and you have to prepare for that and that may |
| 288 | 00:49:42,510 --> 00:49:53,820 | materialize in the form of a losing streak or just, you know, a bad run Okay, and it could be seasonally inspired. Like this time of year. I'm really not that |
| 289 | 00:49:53,820 --> 00:50:01,200 | aggressive in trading. You know, it's the end of the year. It's around the holidays. So I'll scale back and or take months completely out the marketplace |
| 290 | 00:50:01,200 --> 00:50:14,400 | and that I've done that. And there's a human, follow me on the forums know that I'm completely out of market right now. And if you have arrived at what type of |
| 291 | 00:50:14,400 --> 00:50:28,140 | trader, you are, this module here, you know, what we're talking about now is going to be very influential in terms of, as a reference, go back to this |
| 292 | 00:50:28,140 --> 00:50:35,790 | periodically, okay, at least once a month, come back to this video every single month while you're trading, at least, if you're brand new trader, and you just |
| 293 | 00:50:35,790 --> 00:50:40,860 | started doing technical analysis, and you've been following us for a short period of time. |
| 294 | 00:50:42,150 --> 00:50:50,460 | Go back to this as a framework, okay, and it'll help you break down the market. You look at the market in a structured approach module, and you'll be able to |
| 295 | 00:50:50,460 --> 00:50:58,500 | see that directional bias is absolutely not hard at all. It just requires you to be patient to see the setups that line up with the higher timeframe premise. |
| 296 | 00:50:58,500 --> 00:51:13,290 | Okay, so let's begin with arriving at a very simple approach to directional bias and top down approach. Alright, we're gonna talk about the summer of 2012. Okay, |
| 297 | 00:51:13,290 --> 00:51:20,970 | and I'm not cherry picking because if you've been following me on YouTube and on baby pips, I actually called the bottom in the marketplace on both the fiber and |
| 298 | 00:51:20,970 --> 00:51:28,410 | cable before it actually happened. And it's all video documented, I even gave you the price levels, where it's gonna go and where it was going to go once it |
| 299 | 00:51:28,410 --> 00:51:37,890 | reversed on the upside. Okay, so you'll see a lot of these levels talked about here, and you'll be able to see those things actually done on a daily breakdown |
| 300 | 00:51:37,890 --> 00:51:48,090 | on analysis in advance on my YouTube channel. Okay, so, again, I want to stick to things that you've seen the actually talk about and apply. So that way, it's |
| 301 | 00:51:48,090 --> 00:51:57,150 | not like well, you know, it's great on the left side chart, guys, these are actual analysis that I did in advance. Okay, so I'm not making this stuff up, |
| 302 | 00:51:57,150 --> 00:52:04,290 | not put lipstick on a pig. So you guys can be impressed with the left side of the chart. We're talking about something that has been documented before it |
| 303 | 00:52:04,290 --> 00:52:14,910 | happened. Okay. So now let's talk about the fact that obviously, we're going to briefly introduce, again, the seasonal tendency, there's a seasonal tendency for |
| 304 | 00:52:14,910 --> 00:52:26,670 | the markets to create a low in the summertime. Okay. I'm not going to go over that here. That's all in the introductory video series that I did on baby pips |
| 305 | 00:52:26,670 --> 00:52:36,600 | is check out that first thread. It's wildly popular right now. What every new and or aspiring forex trader still wants to know, if you go to the first page of |
| 306 | 00:52:36,600 --> 00:52:46,680 | that thread, the very, very, very, very, very single first post of that thread is an index list of all the videos and resources that I more or less shared with |
| 307 | 00:52:46,680 --> 00:52:54,990 | the community on baby pips. Now, there's a couple nuggets that are hidden throughout the thread. And that's for the folks to have the tenacity to get |
| 308 | 00:52:54,990 --> 00:53:06,000 | executed through the monstrous amount of pages to go through that. But you know, you don't have to, but I think if you find them that you're doing nice little |
| 309 | 00:53:06,000 --> 00:53:20,580 | easter eggs to get a hold of that a lot of insight to it. So we have a seasonal tendency to expect a low to form in the British pound the euro. Again, we're not |
| 310 | 00:53:20,580 --> 00:53:26,730 | going to go over that here. As far as why it's a seasonal tendency to go up. Because I've discussed the other place, I don't want to spend too much time with |
| 311 | 00:53:26,730 --> 00:53:39,330 | all the things that we've already talked about. But here is the load that we're going to actually talk about. Okay, and that low is in the summer of this year, |
| 312 | 00:53:39,330 --> 00:53:50,040 | which is 2012 and is actually the June low. Okay, so the actual low is formed in the cable was on the month of June. Now, what I want to draw your attention to |
| 313 | 00:53:50,040 --> 00:53:59,040 | is the fact that if you go to the left side of your chart here, it's a little bit, see all these lows in here. Okay, and see the lows over here. Now look at |
| 314 | 00:53:59,040 --> 00:54:09,090 | the bodies of the candles here. And look at the lows over here. If you stretch on over all over here, you can see this consolidation around that same area |
| 315 | 00:54:09,090 --> 00:54:23,100 | here. Okay, so what we're doing is we're going to identify a level of key resistance and support. Okay, so obviously, we're going to be just eyeballing it |
| 316 | 00:54:23,100 --> 00:54:36,540 | initially, you have the 152 10 level, which is essentially this level here. Actual level for this data feed is 152 32. So essentially, that's around the |
| 317 | 00:54:36,570 --> 00:54:52,620 | 152 30 level. Okay, so we could use the 152 50 in that area on this one, just again, ballpark it here. So here's 152 57. Okay, you can see how there's a whole |
| 318 | 00:54:52,620 --> 00:54:53,130 | lot of |
| 319 | 00:54:54,450 --> 00:55:00,960 | tug of war back around that same level. If you go back over here you can see the bodies of the candles and the wicks trying to reach for that. Same level, and |
| 320 | 00:55:00,960 --> 00:55:11,160 | again, don't want 50 to 50 is a mid figure level that we like to talk about. Alright, so we would expect reasonably to see some sort of a bounce around that |
| 321 | 00:55:11,160 --> 00:55:23,610 | mid figure, and around the large full figures, 152, even 153, even. But notice that we have a whole lot of action around that 150 to 50. level. Okay? So what |
| 322 | 00:55:23,610 --> 00:55:34,050 | we're doing is we're actually looking at this low here, the lows in here, the bodies of the candles in here, this is the level of consolidation, where there's |
| 323 | 00:55:34,050 --> 00:55:45,660 | a few short term lows that could have been used for probable areas of support, but we're gonna erage we're going to keep our original idea and premise to using |
| 324 | 00:55:45,690 --> 00:55:58,890 | the 152 50 level. Okay, I'm gonna do as as we move down, again, we're looking at the higher time frame, position trader, approach, and we're gonna use top down |
| 325 | 00:55:58,890 --> 00:56:08,580 | analysis concepts. Okay, so we're gonna start with the 152 50 level here. But before we get to that, what I want to draw your attention to is the range that |
| 326 | 00:56:08,730 --> 00:56:22,050 | at that point, when we traded down in the summer months, we were inside of a larger range, okay? And that can be seen here, here's the low. And here's the |
| 327 | 00:56:22,050 --> 00:56:34,230 | high. Okay, can you see how that 50 level is the midpoint of that larger range here is high, and this low. So we're inside this larger range, and we found |
| 328 | 00:56:34,230 --> 00:56:42,750 | support at the 50 level. Okay. Now, I'm not trying to draw your attention to the fact that it's the 50 fib level, that's not the concern, okay. The point is that |
| 329 | 00:56:42,750 --> 00:56:52,680 | we're inside of a larger consolidation. Okay, and thinking of market profiles, we had a trending profile, we had a reversal profile, and now we're in a |
| 330 | 00:56:52,680 --> 00:57:07,530 | consolidation, okay, and we went into a smaller consolidation in here, okay, so, we do have this range, consider, okay, and we have found support at the midpoint |
| 331 | 00:57:07,530 --> 00:57:18,780 | of that range. Okay. Now think of our mocha market profile concepts. Okay. Now, I taught a concept of z day formations. Okay. Now, if there was one thing, I |
| 332 | 00:57:18,780 --> 00:57:30,120 | could go back and change, I wish I would have took took the day part out of it, okay? Because it's z formation, which is what you see, that's synonymous with |
| 333 | 00:57:30,120 --> 00:57:41,280 | consolidations, okay, and they can tend to fall into the Seek and Destroy market profile. Okay. And again, that's a video module just for these specific |
| 334 | 00:57:41,520 --> 00:57:50,040 | profiles. Okay, so again, I'm not gonna spend time here, but you can check those out and study more information about those. But while we're in here in these |
| 335 | 00:57:50,040 --> 00:58:00,900 | consolidations, okay, the Z day formations, or Z formations, and consolidation is what you would expect to see in price action. So it's not limited to just a |
| 336 | 00:58:00,900 --> 00:58:13,740 | intraday or a daily phenomenon. You can see here on the monthly, you see that same formation happening here. Okay. But it's interesting, I think, to note that |
| 337 | 00:58:13,740 --> 00:58:23,520 | 152 50 level, okay, we're seeing a whole lot of confluence of expectation of the market, finding support at that same timeframe. So now we have a seasonal |
| 338 | 00:58:23,520 --> 00:58:36,180 | tendency, okay. And price comes down into that 152 50 level, okay. And, again, the low on that particular month was the 152 67. Okay, so now we have this map |
| 339 | 00:58:36,180 --> 00:58:45,180 | down here. Okay, we've essentially won over the fact that we've been trending, we had a market reversal in here. Okay, now we're in the consolidation, so we're |
| 340 | 00:58:45,270 --> 00:58:54,810 | inside of a larger monthly consolidation, okay, but we have discernible levels of support resistance to work within. Okay, so now I'm gonna keep these levels |
| 341 | 00:58:54,810 --> 00:59:12,150 | up, we've mapped out the higher timeframe monthly chart. So let's get down to a weekly you can see by going forward and moving into the June timeframe here, set |
| 342 | 00:59:12,450 --> 00:59:26,550 | the June low reading here, we have price come up and come back down and found support this particular level here, okay. What I'm gonna do is I'm gonna take |
| 343 | 00:59:26,550 --> 00:59:29,790 | the fib off because it's not needed at this point. |
| 344 | 00:59:34,800 --> 00:59:48,060 | Okay, so now look what we have here we have price, finding support. Now by moving down to a weekly chart, we can work closely calibrate these levels. Now |
| 345 | 00:59:48,060 --> 00:59:59,760 | this is 152 50. But now watch what happens when we start moving up to these lows that are here. We have a low here we have a low here. We have a low here. Notice |
| 346 | 00:59:59,760 --> 01:00:19,800 | what how happens over here, watch this area right here. Okay, we have this low here. If we move up to these particular lows being this low here, two bodies of |
| 347 | 01:00:19,800 --> 01:00:31,380 | the candles here, you can see now we have a much more discernible range in here. So we have anywhere between the 153 because if you look over here we got 152 97 |
| 348 | 01:00:32,250 --> 01:00:48,150 | and the low the previous low here, okay comes in at 152 30. So we essentially we have about 70 pips of likely range in here that we would have to zero and |
| 349 | 01:00:48,180 --> 01:00:58,500 | capture a more calibrated price level. So now while it's still approximately 70 pips or so of potential range, and here, we we didn't anticipate the low |
| 350 | 01:00:58,500 --> 01:01:19,530 | forming, it's not hard in terms of now applying our levels that we're familiar with the ease and 20s. Okay, and we're going to introduce again, the big figure |
| 351 | 01:01:20,130 --> 01:01:21,780 | and mid figure indicator. |
| 352 | 01:01:29,670 --> 01:01:35,550 | And what we're actually going to do is we're going to add some more levels because there's not enough one here |
| 353 | 01:01:45,480 --> 01:02:02,940 | you can see how we have the 53 figure down here. And we have the mid figured it. It didn't get too in here. So we have this range of 50 pips now. So you can see |
| 354 | 01:02:02,940 --> 01:02:16,350 | how we've calibrated from 70 pips now until down to a range of 50 pips, okay. But we've identified this little area in here. And what I'm going to do is I'm |
| 355 | 01:02:16,410 --> 01:02:37,290 | just going to highlight, okay, and we're going to use 253 and 5250 level one here, okay? Now, what I'm drawing your attention to is the fact that we have |
| 356 | 01:02:37,290 --> 01:02:47,700 | these, this low in here, the low here, and the low here. Okay, so we're working within this 50 PIP range in here. Okay, so now when we drop down to a daily, |
| 357 | 01:02:48,060 --> 01:03:08,280 | okay, what's the next level when you're a position trader, we're gonna go down to that time frame. And you can see here, this is the daily. And now we have the |
| 358 | 01:03:08,280 --> 01:03:16,530 | bodies of the candles here. So yeah, we have all this consolidation in here. Because all we're doing now is you're just mapping out from the higher timeframe |
| 359 | 01:03:16,560 --> 01:03:26,760 | monthly to the weekly to the daily, and we're calibrating high odds, support resistance levels. Okay, I get questions in you, how do I know how to find key |
| 360 | 01:03:26,970 --> 01:03:33,990 | support resistance level? And how would it look like and what do I do to do it? You know, in my own charts, well, I already have a video module for that. And |
| 361 | 01:03:33,990 --> 01:03:41,730 | it's silent. But I'll give you all the details, you need to go through the steps. And this is really again, one more example how I do it. And again, I'm |
| 362 | 01:03:41,730 --> 01:03:53,880 | not asking you to take my word on it, go and look at all the videos around this timeframe. And you'll actually see on my live stream channel and on my YouTube |
| 363 | 01:03:53,880 --> 01:04:07,950 | channel that these are all particular points in the marketplace where they were called in advance. So again, we're not doing your cherry picking. Now there's a |
| 364 | 01:04:07,950 --> 01:04:18,570 | great level in here. This is didn't 152 at level. Okay, so we have 152 80 as a good level to be looking for. And we have the bodies of the candles and the lows |
| 365 | 01:04:18,570 --> 01:04:40,080 | down here. And they those come in at 152 75 152 79. Okay, so around that 80 level. Okay, is a good level to be anticipating a bounce. Okay, so now we have |
| 366 | 01:04:40,230 --> 01:04:56,040 | essentially the 152 82 152 50 so now we've reduced it down to 30 pips. Okay, so now we're going to zoom down into the one hour chart. Now you're probably |
| 367 | 01:04:56,040 --> 01:05:04,170 | saying, Well, why don't you go to the four hour because we're up Position trader. So you there's no necessity to look at the four hour because you have |
| 368 | 01:05:04,170 --> 01:05:18,420 | already arrived at the likelihood that you're anticipating a bounce in support. Okay? And you're looking for price to provide you a signal at that timeframe. |
| 369 | 01:05:18,900 --> 01:05:29,430 | Okay. And here's that particular area where price comes down into that June low. Okay. Now what I want to draw your attention to is, we've identified that hard |
| 370 | 01:05:29,430 --> 01:05:42,960 | time frame 153 to 152 50 level initially, that was a 50 PIP range, and we reduce it down to 30. pips. So here's that 152 50 level, this dotted line here. And |
| 371 | 01:05:42,960 --> 01:05:52,800 | here's the 152 80 level. Okay, so inside that area, we're expecting some sort of a low to form based on all these previous old lows from all the monthly, the |
| 372 | 01:05:52,800 --> 01:06:01,200 | weekly and the daily chart. So we broke it down, and we mapped out the marketplace where there's a high probability to see specific key levels. Okay. |
| 373 | 01:06:01,560 --> 01:06:12,600 | Now, it's not imperative that you pick the right one, you wait for the market to tell you which one is the right one. Okay. I understand there's a lot of respect |
| 374 | 01:06:12,600 --> 01:06:21,930 | for me one baby pips, and I appreciate that. But unfortunately, some of the newer folks, okay, and so maybe the guys has been around for a long time and |
| 375 | 01:06:21,930 --> 01:06:23,460 | still have just struggled for a while. |
| 376 | 01:06:24,810 --> 01:06:34,320 | They put an S on my chest, and they made me much more than I really am. Okay, and I appreciate the enthusiasm, but I don't know, all the time where these |
| 377 | 01:06:34,320 --> 01:06:44,550 | things are gonna reverse rate to the PIP Okay, so don't, don't have that in your mind. I get lucky a lot, okay. And sometimes I'm able to call highs and lows. |
| 378 | 01:06:44,550 --> 01:06:53,670 | And it's, it's impressive sometimes to myself, but that's not what your goal is. Okay? What we're talking about here is how you actually arrive at a directional |
| 379 | 01:06:53,670 --> 01:07:04,950 | bias, where the markets already proven to you where the high odds likelihood of trading to is, okay? So again, remove the necessity and the the putting yourself |
| 380 | 01:07:04,950 --> 01:07:13,440 | in a box where it has to provide you the actual level, forget all that you don't need that. Okay. And what we're going to show you here is going to prove that to |
| 381 | 01:07:13,440 --> 01:07:22,620 | you. Here's that seasonal low, we anticipated, okay, we saw price trade down to those particular levels, okay, and we're anticipating a bounce, that's what |
| 382 | 01:07:22,620 --> 01:07:30,750 | we're looking for. Okay, if you're short, all through here, you're just looking for targets down here to take profits, right. But if you're a position trader, |
| 383 | 01:07:30,840 --> 01:07:38,280 | and you just sat down your charts, and you want to resume trading, and you look for long term trade, a season alone, summertime is a good opportunity to get you |
| 384 | 01:07:38,880 --> 01:07:52,290 | hunting for this type of setup. all you're gonna do is wait for a low at a predetermined price level. When a time of year, seasonally speaking, okay, where |
| 385 | 01:07:52,320 --> 01:08:02,130 | we are likely to see the market move for a long period of time. And that's what the impact of seasonal seasonal tendencies will provide for you. So now we have |
| 386 | 01:08:02,160 --> 01:08:11,550 | price coming down into June low. Okay. And then we have this nice reaction here. This is what you wait for. Okay, this is what you wait for. Now, watch, I'm |
| 387 | 01:08:11,550 --> 01:08:19,860 | going to take, I'm going to take the big figure mid figure indicator off, because I think right now it's going to number one is going to distract me and |
| 388 | 01:08:19,860 --> 01:08:30,150 | we can't have that. So you see this price rally up in here. Okay, look what it's done. When it rallies up like this, it blows out the market structure, swing |
| 389 | 01:08:30,150 --> 01:08:39,660 | high here. Now again, we're looking at a one hour chart. So this is what you would need you when you see that happening. Okay, we now have confirmation that |
| 390 | 01:08:39,660 --> 01:08:51,090 | hey, look, market structure is now broken on one hourly basis. This is the swing that breaks it. So this is the impulse move here. Okay, so this is your range. |
| 391 | 01:08:51,450 --> 01:08:59,760 | Okay. Now, you probably already understand where I'm going to go with this next. But this is what you wait for. You don't chase it when it rallies up like that. |
| 392 | 01:09:00,210 --> 01:09:06,750 | Okay, you're a position trader, you want to get in sync with the higher timeframe trade. You want to be in there for a little while, not just a day |
| 393 | 01:09:06,750 --> 01:09:14,250 | trade, you have a job, you have family have kids, you got soccer practice, or your soccer mom, you're a baseball Mom, you can't be in front of the charts all |
| 394 | 01:09:14,250 --> 01:09:22,680 | the time. But you want to have an ability to be able to trade and take some, some trades out into the marketplace and not trade all the time and still be |
| 395 | 01:09:22,680 --> 01:09:33,090 | able to capture some handsome moves. Well, this is how you do it. You have the market structure shift here. This swing high here, when it breaks above here, |
| 396 | 01:09:33,150 --> 01:09:46,050 | that's what you've waited for. So now, all you're going to do is go to your fib grab your low, pull it up to the high of that range. Okay. And you drop it. This |
| 397 | 01:09:46,050 --> 01:09:57,210 | is what you have here. Now again, this is a one hour chart. Can you see this? You can have this on your smartphone, okay, your iPhone or your Android or |
| 398 | 01:09:57,210 --> 01:10:09,300 | whatever that allows you a alert to be sending you a text when price comes back down into that 62 level or approaches it 10 pips or so. Okay, you want to be |
| 399 | 01:10:09,300 --> 01:10:18,390 | looking at the marketplace or you simply put a limit order down in here. Okay? So when price comes down to that point you're going to be buying at a limit. |
| 400 | 01:10:18,750 --> 01:10:26,040 | Your risk is going to be from that point and 10 pips below here. Okay, so what does that equate to? Well, let's look at that |
| 401 | 01:10:31,470 --> 01:10:47,370 | few go in with a position traders mindset. Okay, and you're gonna be buying at 262 and you want 10 pips below here? Okay? Your stop is going to be 152 57 Okay. |
| 402 | 01:10:48,120 --> 01:11:03,750 | 257 now the risk total risk is going to be 76 pips. Okay. 76 pips? Near pricing. Whoo. That's a lot of pips. Okay, I understand. But if you're a position trader, |
| 403 | 01:11:04,770 --> 01:11:11,310 | what are you going to do? You're going to be scaling back in your lot size anyway, right? So there's nothing wrong with taking this trade with a 76, Pip |
| 404 | 01:11:11,640 --> 01:11:25,710 | stop loss. If you're trading with, you know, more than one Mini, okay, you can, you can trade with that, you're only assuming a risk of 80 $80. So there's |
| 405 | 01:11:25,710 --> 01:11:34,890 | nothing wrong with that trade, okay, and you'd be able to be positioned for a longer period. Position trade. Now, again, obviously, you can go down and look |
| 406 | 01:11:34,890 --> 01:11:44,940 | into the smaller timeframes, okay? utilized with day trading and swing trading and short term trading, to even narrow down that smaller risk. Okay, but we're |
| 407 | 01:11:44,940 --> 01:11:55,200 | not going to do that here. The only thing we've talked about thus far is we're arrived at a directional bias. So now we've expected this to happen. Okay, so at |
| 408 | 01:11:55,200 --> 01:12:03,960 | this point, if you're a position trader, and you have a job and all that business, this is where the market structure shift takes place. And then it |
| 409 | 01:12:03,960 --> 01:12:13,260 | comes back if you to buy signal, and then starts to rally up. Now, what you're doing at this point is you're gonna start mapping out all the intermediate term |
| 410 | 01:12:13,290 --> 01:12:22,290 | and the short term highs and lows. Okay, so now we have this low here, with a previous low here, it's higher. And now we have a higher low here. So this makes |
| 411 | 01:12:22,290 --> 01:12:31,470 | this what an intermediate term, or what we're hoping to find a long term low, okay, and you have a higher low here, and you go back here, you have a higher |
| 412 | 01:12:31,470 --> 01:12:41,580 | low here, that makes this qualified as a long term low. So now watch what happens, we have a low. Now we have an enemy a term high here, we could see if |
| 413 | 01:12:41,580 --> 01:12:50,640 | price runs above this high eventually here, in our in our position trade, which we see here, we can see a move that's comparable from this low to this high |
| 414 | 01:12:50,730 --> 01:13:00,930 | added to this high up. Okay, and what do I mean by that? Well, let's take a look at this. And we have this range here. And you've seen me do this before, it's |
| 415 | 01:13:00,930 --> 01:13:19,170 | all measured moves and market structure. Okay, and scrolling forward, and I probably better take it out. We have price, still meandering in the launcher, |
| 416 | 01:13:19,500 --> 01:13:28,560 | consolidation. And let's go out to a lot easier. You had to sit through all this. But again, you're a position trader, you're not in there. Every day, |
| 417 | 01:13:28,710 --> 01:13:37,950 | you're in here for longer term price move. Look what happens if you go from this point over here, go straight on over. You get this high right there. Okay. So if |
| 418 | 01:13:37,950 --> 01:13:48,030 | you're a position trader, you could have done a long here and reach for this particular high here as your first profit objective. Okay, as a position trader. |
| 419 | 01:13:48,300 --> 01:13:56,430 | So what does that equate to? Well, let's look at we have price approximately in around this area here. I'm not, I'm not going to give you the exact pitch. It's |
| 420 | 01:13:56,430 --> 01:14:08,130 | not important here. But we're looking at a move for first profit of 575 pips, approximately. Okay. So if you're doing double tap as your, your specific |
| 421 | 01:14:08,190 --> 01:14:28,080 | trading approach, taking first profit here, okay. Your first profit is 575 pips from the entry. Okay. Now, when you see this swing here, okay. Again, we've now |
| 422 | 01:14:28,080 --> 01:14:28,710 | measured |
| 423 | 01:14:29,970 --> 01:14:38,880 | this initial move here, but now we have this retracement as you'd hoped you would have had to absorb. Okay. We're going to talk about risk and stop |
| 424 | 01:14:38,880 --> 01:14:47,220 | placement and risk reduction and all that and we're going to apply all those concepts, again, through all these different types of trading. So we're not |
| 425 | 01:14:47,220 --> 01:14:58,320 | going to talk about that here. But I promise you, we'll we'll be bringing it up. You have this low to this enemy term high here. Okay. It comes down right into a |
| 426 | 01:14:58,320 --> 01:15:09,570 | sweet spot and you would be expecting this to unfold, anticipating it to unfold, and as price rallies up, and breaks these highs in here, in here. Okay, we have |
| 427 | 01:15:09,570 --> 01:15:18,660 | further evidence to suggest that any lows retraced back in here as we make higher short term highs and intermediate term highs. Every time we do that, that |
| 428 | 01:15:18,660 --> 01:15:28,320 | will allow us to apply market structure concepts to lead reach for new buying opportunities. Okay, so while you were buying here, and you saw this range from |
| 429 | 01:15:28,320 --> 01:15:38,580 | this high down to this low, when we sell that retracement back here, this is another opportunity to buy more. Okay. So you can get long and build your long |
| 430 | 01:15:38,580 --> 01:15:52,110 | position up or seasonal position trade even to a larger degree. Now, assuming that you had this understanding also, and you applied market structure, you can |
| 431 | 01:15:52,110 --> 01:16:06,390 | now start applying your higher level profit objectives by taking this high. And I'll have to fix that fitness second. Pulling it from the high here down to that |
| 432 | 01:16:06,390 --> 01:16:25,680 | low. And we have our 200 extension up here. Okay, so that'd be a nice second profit level four position trade. Okay. If you utilize the expansion tool, you |
| 433 | 01:16:25,680 --> 01:16:37,230 | take the low forms here. And you apply it to hear, okay, and you're 200 extensions up here. So you're looking for a really long term profit objective, |
| 434 | 01:16:37,530 --> 01:16:54,060 | it's way up there. And we're still possibly reaching for that, okay. Which is, I think is rather significant. It's above this high here. We poked above here. And |
| 435 | 01:16:54,060 --> 01:17:06,450 | we talked about that real time as a as a sell and then ran down. But that's not the point of this video. I'm plugging live market calls, I apologize for that. |
| 436 | 01:17:07,410 --> 01:17:18,810 | It's not my goal here is to take this expansion tool off. |
| 437 | 01:17:24,780 --> 01:17:36,150 | Okay, so you can see how we had this trending move reversal and consolidation. So now we're applying the market profiles, market structure. Okay. So now, we |
| 438 | 01:17:36,150 --> 01:17:49,290 | have a directional bias long term back here in the beginning of June. We are still in the summer months in July. Okay, we still expect a seasonal rally. |
| 439 | 01:17:49,680 --> 01:18:08,220 | Okay. And you see this run up. Now. We also can apply standard priced patterns like ascending triangles, which is what you see in my video, I talked about this |
| 440 | 01:18:08,250 --> 01:18:18,330 | in the video. And then talked about our projections, which led to this retest of this old high back here. And again, I did all that back in June, okay, late May, |
| 441 | 01:18:18,360 --> 01:18:28,020 | early June. And I was calling these highs back here before they actually happened. So now let's take a step back. Okay, and think about what we've |
| 442 | 01:18:28,020 --> 01:18:40,290 | covered. Just for position trading. Okay, we could look for entries here. Okay, and using market profiles and market structure, and blending all the things that |
| 443 | 01:18:40,290 --> 01:18:49,260 | we've talked about in other videos, okay, we arrived at a directional bias, we're looking to get long. Okay, once we take out old highs, you just go to the |
| 444 | 01:18:49,260 --> 01:18:57,660 | left side of your chart, and there's going to be new old highs that you have to reach for. If price gets above this high here. from here onwards, we're rallying |
| 445 | 01:18:57,660 --> 01:19:05,790 | up and we make this high and starts to retrace, and we go into an optimal trade entry. From this buy, where's the worst the objective going to be on the upside |
| 446 | 01:19:05,820 --> 01:19:13,680 | initially, it's going to be this old high back here. And you see it fails here initially comes back and retest again, but knows what's happening. Every time it |
| 447 | 01:19:13,680 --> 01:19:24,090 | comes back. It's providing a new buying opportunities. Okay. Then we have it break this high here, right there. And it comes back and find support there. And |
| 448 | 01:19:24,090 --> 01:19:35,790 | then market structure continues to keep making higher lows as it reaches for new highs going higher. Okay, so what is it pressing for? Was it reaching for, it's |
| 449 | 01:19:35,790 --> 01:19:47,730 | gonna reach for an old level of resistance, which is back here. Okay. So now, we would be reaching for this level. If we're long here, and had you done that you |
| 450 | 01:19:47,730 --> 01:19:56,550 | would have been able to get some profits, very handsome profits here. And if you're using that as your secondary exit point, again, not using now ideal point |
| 451 | 01:19:56,610 --> 01:20:09,510 | of entry, I'm just eyeballing it. We just use the old Hi back here. That's 965 pips. So if you first profit was 575. And your second profit was 965 pips. Yeah, |
| 452 | 01:20:09,870 --> 01:20:19,800 | good grief, you know, you're not doing a whole lot of trading, but you're also taking off the market, a huge amount of pips. So if you're just now getting |
| 453 | 01:20:19,800 --> 01:20:27,870 | yourself acclimated to trading, and you have a full time job, and you maybe have kids to take care of, there's no excuse why you can't take profits out of the |
| 454 | 01:20:27,870 --> 01:20:39,870 | marketplace. But the The point is, is if you start with this premise, it'll help you when you start applying some changes to your life that you hopefully can do. |
| 455 | 01:20:40,170 --> 01:20:49,800 | And allow yourself to get more closer to swing trading or short term trading and you actually have a lot more participation in the marketplace. This approach to |
| 456 | 01:20:49,860 --> 01:21:00,060 | analysis will provide you a wealth of insight, huge amount of insight, okay, because if you're ready, take a huge step. Okay. And those that have missed it |
| 457 | 01:21:00,060 --> 01:21:10,530 | up to this point in the last three years on my journey with you guys on baby pips, and sharing, you're going to hopefully have that epiphany, okay, it's |
| 458 | 01:21:10,530 --> 01:21:20,070 | going to be Whoa, there it is. It makes sense now, okay, we have been talking, okay, most of this video just about the monthly, weekly in a daily now we're |
| 459 | 01:21:20,070 --> 01:21:29,010 | just spending a little bit of time on a one hour for our chart just to illustrate, you know, how these things work out using the higher timeframe. So, |
| 460 | 01:21:29,220 --> 01:21:36,030 | we've covered a position trading, okay, and we've arrived at a directional premise here. Okay. So if you're a position trader, this is how it could have |
| 461 | 01:21:36,030 --> 01:21:49,710 | been done. Okay. Now, we're gonna get ready, take a huge step, rethink a huge step forward. Okay, and apply even more detail to this same premise. Okay. So |
| 462 | 01:21:49,710 --> 01:22:00,870 | now what we've done is we've essentially mapped out a time in price. |
| 463 | 01:22:03,720 --> 01:22:15,750 | Okay. And now I'm going to, for the sake of honesty, because I wouldn't have known exactly when timewise it reached this area in terms of price, but I |
| 464 | 01:22:15,750 --> 01:22:24,030 | extended it past a little bit, but this is the high would have been aiming for. So from this point in here, the ranges the old high here, and wherever we would |
| 465 | 01:22:24,030 --> 01:22:33,900 | have entered into a higher timeframe, positional trade. Okay, so now watch what's happening. We're going to be milled now moving into the realm of swing |
| 466 | 01:22:33,900 --> 01:22:44,340 | trading. Okay, so how do you arrive at your directional premise for swing trading? Well, it doesn't take rocket scientist to figure out that if we're |
| 467 | 01:22:44,580 --> 01:22:55,050 | higher timeframe, positional trading, expecting this type of move higher, okay. And again, it's very, very, very important that you guys go back and look at the |
| 468 | 01:22:55,050 --> 01:23:07,470 | videos that I did during the late spring and hold the whole entire month of August and June and July. I call this market higher, using what I'm sharing with |
| 469 | 01:23:07,470 --> 01:23:17,340 | you now. Okay. So you know, it works in advance. It's not like I went backwards, and I'm giving you the best of the best. This is how it's done. Okay, and I use |
| 470 | 01:23:17,340 --> 01:23:27,660 | higher timeframe directional premise, to facilitate all of my other trades. Okay. So now let's break this down into a means of swing trading. So now we're |
| 471 | 01:23:27,660 --> 01:23:41,130 | gonna change to a daily. Okay, and now you can see by looking at the daily, this is that portion of the market, okay, we've mapped out for a high probability of |
| 472 | 01:23:41,550 --> 01:23:51,360 | seeing a buy program, okay. Now by programmers, when you look primarily for buys, okay, the direction is most likely to have least resistance going up. |
| 473 | 01:23:52,140 --> 01:24:01,020 | Okay, so that's, that's basically what you're doing. As a trader, you when you map out the marketplace, you're looking for the least of resistance, because |
| 474 | 01:24:01,020 --> 01:24:08,490 | that's exactly where the markets gonna go. Okay? Whenever there's the least amount of resistance, that's the highest probability in terms of trade |
| 475 | 01:24:08,490 --> 01:24:17,940 | direction. So that's, that's one of the easiest ways to remember where is the open spaces and charts. Okay, once you break these highs, look what you had back |
| 476 | 01:24:17,940 --> 01:24:25,500 | here. You have a very short term high here, and then you had some consolidation there. But look what happened after that boom, vertical, because it was filling |
| 477 | 01:24:25,500 --> 01:24:33,750 | in all this price action, there's no discernible. Okay. support resistance, and now there was short term that you could have used obviously, and as we look into |
| 478 | 01:24:33,750 --> 01:24:43,620 | smaller timeframes, but the point is, is there's very little resistance in terms of the higher timeframe price move, because once we found consolidation here, |
| 479 | 01:24:43,620 --> 01:24:50,460 | there was accumulation on their way here and we talked about this real time. Okay. I mean, the big boys, the institutional players, okay, they were |
| 480 | 01:24:50,460 --> 01:24:57,750 | accumulating Long's in here. There's a lot of folks that were calling this market low here. Lower, it's going to go low. It's gonna go a call to five or |
| 481 | 01:24:57,750 --> 01:25:06,810 | lower here, not us. We knew look into the charts that there was accumulation going on the way. Now, with that premise in mind, all we did was wait for price |
| 482 | 01:25:06,810 --> 01:25:17,160 | action to prove to us that it was going to go higher. Okay, so now we have the daily chart here, and we're moving down into a swing traders mindset. There's a |
| 483 | 01:25:17,160 --> 01:25:24,900 | night, you're not so much a position trader, you want to have a little bit more active role in trading. And that means your trades are going to be a little bit |
| 484 | 01:25:24,900 --> 01:25:37,800 | longer than one week. Okay? So it could be one week to a month. Let's break this down and take a look at how you as a trader could be a swing trader. Now I'm |
| 485 | 01:25:37,800 --> 01:25:51,390 | going to have to unfortunately change the color of this rectangle because it's just a little too much. In terms of blue, there's nothing wrong with blue. I |
| 486 | 01:25:51,390 --> 01:25:54,030 | just can't have it looking like this. |
| 487 | 01:26:02,790 --> 01:26:18,930 | See if that does. That doesn't help me out either. Go to a little bit darker. And let's go purple in my work. Yeah, that's all right. That's good. And if it |
| 488 | 01:26:18,930 --> 01:26:30,780 | doesn't work for you guys, yeah, suck it up. So we have the market market market structure shift that took place back in here in the beginning of June. Okay. So |
| 489 | 01:26:30,780 --> 01:26:40,860 | now, as a swing trader, okay, what you're going to do is you're going to wait for your higher time frame, directional premise, to come under way and using the |
| 490 | 01:26:40,860 --> 01:26:52,530 | daily chart, that's your primary higher time frame chart. Okay. And assuming that and you're looking at price making this rally up here, okay, you as a swing |
| 491 | 01:26:52,530 --> 01:27:05,880 | trader, the setup you would be hunting was this from this low to this high, right in here. Now, again, I'm going to counsel you to go and look at the |
| 492 | 01:27:05,880 --> 01:27:16,890 | videos. You'll see me with a trade long here. And it was a swing trade. Okay. And this is the reason why I did it. Because I anticipated this range here, the |
| 493 | 01:27:16,890 --> 01:27:26,670 | retracement back, we were still within a higher time frame probability of at least trying to trade back in the rains that flows from this high to this low. |
| 494 | 01:27:26,940 --> 01:27:35,670 | So now again, I'm sticking with is that higher timeframe premise or a bullish scenario? Okay, so I'm expecting bullish prices. So now what am I going to do as |
| 495 | 01:27:35,670 --> 01:27:47,310 | a swing trader, I'm gonna be looking for a trade like this. Okay, this low to high and I'm going to be looking to get long here. Okay, so now watch, we're |
| 496 | 01:27:47,310 --> 01:28:03,210 | going to go down into that same little area. And we'll just take the 62 to 79 and block out that little area here. Okay, so we have identified a level where |
| 497 | 01:28:03,210 --> 01:28:15,630 | we would expect to see the optimal trade entry form. Okay. We saw old highs in here, old lows in here. So we do know that around that 154 20 level, okay, or |
| 498 | 01:28:15,630 --> 01:28:25,080 | 154. figure that's highly likely that we will see a bounce there because we're inside the optimal trade entry 62 to seven nights of chasing level on the fib |
| 499 | 01:28:25,440 --> 01:28:33,870 | based on this retracement of this high in this low in here. So we traced back into a deeper retracement while still being in a higher time frame bullish |
| 500 | 01:28:33,870 --> 01:28:48,930 | scenario that we just mapped out from the monthly, weekly and daily. So now let's drill in to a four hour which is the next chart we utilize. Okay, so now |
| 501 | 01:28:48,930 --> 01:28:59,220 | we have that little area down in here. Okay, so now you're gonna apply all the concepts we've already talked about. Okay, you see this low to this high in |
| 502 | 01:28:59,220 --> 01:29:13,260 | here. If this is the area we're hunting for possible low to form to get long on their higher timeframe daily. Okay, to on day optimal trade entry long. Look |
| 503 | 01:29:13,260 --> 01:29:33,300 | what happens if you take that low. And you apply one of our trademark patterns. ICT Grail oops. Here's a 62% retracement level here. Okay, it's overlapping with |
| 504 | 01:29:33,300 --> 01:29:42,900 | this level here on this low. Here is the level is the 100 level. This is how we hunt the ITT reflection. So we have a confluence of a lot of factors here |
| 505 | 01:29:42,900 --> 01:29:52,020 | suggesting this is going to be low. And again, please go back to the videos during these months. Okay, when I'm doing pro traders clubs and, and market |
| 506 | 01:29:52,020 --> 01:30:02,940 | reviews on a weekend, you'll see me talk about these and show you okay and many times there's examples of trade entries and actual live events were actually did |
| 507 | 01:30:02,940 --> 01:30:15,330 | trades and show you the results of it. But here you have a reflection pattern overlapping with a higher level. ot. Okay, so this is your entry for a swing |
| 508 | 01:30:15,330 --> 01:30:28,830 | trade. Okay. But if you miss this one, okay, if you miss this one, we're on a second chart on our higher timeframe for swing trading the dailies the highest, |
| 509 | 01:30:29,310 --> 01:30:39,870 | and the four hour is the secondary, this is what we're looking at now the four hour. But if you miss this, how do you take action? Think how do you take |
| 510 | 01:30:39,870 --> 01:30:52,800 | action? If you want to be a swing trader and you miss the easiest entry in terms of the higher timeframe daily? What do you do? You wait for market structure to |
| 511 | 01:30:52,800 --> 01:31:00,030 | prove to you that it's going to go higher. Okay. And that's this high right here. When now high is taken out here, |
| 512 | 01:31:00,420 --> 01:31:09,900 | okay, you don't chase after once railing it like this. Because you're zoomed out to a daily in four hours, you're going to allow it to run up and give you a |
| 513 | 01:31:09,900 --> 01:31:20,580 | range. And then when it starts to retrace, what do you do? you map out where the next signal is going to likely to occur? based on price. Okay, and what does |
| 514 | 01:31:20,580 --> 01:31:31,740 | that look like? Well, you take your fib, and here's the lowest that you missed, but you maybe have anticipated. Here's the new range. Okay, this low to high, |
| 515 | 01:31:32,070 --> 01:31:42,030 | your directional premise is still What? Long? Okay, you want to be a buyer. So you wait for price come down, look at the overlapping of setting line and this |
| 516 | 01:31:42,060 --> 01:31:52,560 | old fib here, we have a nice confluence of the optimal trade entry right in here. Okay, so now you're getting long, at the 154 80 level be hands on, you can |
| 517 | 01:31:52,560 --> 01:32:05,370 | see it over here, or 155. figure, okay, you can get long in that. And ever, rather manageable stop. And we haven't gone down to the one hour chart yet where |
| 518 | 01:32:05,370 --> 01:32:13,080 | we can actually zoom and get a tighter placement on our entry and stop. But we're just gonna eyeball it here for now, because I'm going to talk about if you |
| 519 | 01:32:13,080 --> 01:32:23,790 | do take this trading, you wouldn't be long. What's the targets? Well think we now have this range, we have this high to this low. Okay. And you can see how |
| 520 | 01:32:23,790 --> 01:32:34,110 | price is reaching right back for this high here. With what dynamic explosive price action in the direction of the higher timeframe premise, you see this. |
| 521 | 01:32:34,440 --> 01:32:42,870 | This is the type of trade you want to be in. This is institutional sponsors that this is where the big boys are behind it. Okay. And what happens is they get in |
| 522 | 01:32:42,870 --> 01:32:50,700 | a buy a whole lot of it. And again, and he takes some profits off, but they don't want to they don't want to miss another opportunity to buy. So they'll |
| 523 | 01:32:50,700 --> 01:32:58,710 | stop buying and allow the market to fizzle down. Okay, and where's it go right back to that same entry point where they can buy more and accumulate more of it. |
| 524 | 01:32:59,040 --> 01:33:07,860 | And what do you see again, immediately rallies off away from it. And again, they put put the brakes on a little bit because they don't want to have too much |
| 525 | 01:33:07,890 --> 01:33:15,870 | attention drawn to what they're doing. So every time it comes back, they're buying more of it, buy more of it, buy more of it. Okay. But now let's talk |
| 526 | 01:33:15,870 --> 01:33:33,900 | about this little entry point right here. All I'm doing is borrowing this rectangle. And I'm going to highlight this little area here on the one hour |
| 527 | 01:33:33,900 --> 01:33:45,720 | chart next to the lower level chart for swing trading. Okay, now watch what happens. We have price trading inside that little area here. Okay, at that at |
| 528 | 01:33:45,720 --> 01:33:56,370 | that higher level, optimal trade entry point. Okay. Price rallies up and then comes back down inside that range. What do you think's gonna happen right here. |
| 529 | 01:33:59,850 --> 01:34:09,480 | You're a swing trader, right? You've mapped out your directional premise based on the higher time frame. Here is your 79 your sweet spot and your 62 and |
| 530 | 01:34:09,480 --> 01:34:18,540 | there's your explosive rally up and it doesn't take long to get back to these old highs here to get profit. Now what does it look like in terms of pips? Well |
| 531 | 01:34:18,540 --> 01:34:31,350 | if you get in here at the sweet spot in just take profit over here, that's 250 pips 260 pips or so at the best case scenario on your exit. Okay to learn 60 |
| 532 | 01:34:31,350 --> 01:34:40,590 | pips, there's nothing wrong with that and it doesn't take but a few hours really to get to that point. So inside of a day 260 pips man, that's, that's, that's |
| 533 | 01:34:40,590 --> 01:34:51,780 | good. And that's a swing trade that you could take using that higher level timeframe. Directional premise. Again, your directional premise should hopefully |
| 534 | 01:34:51,780 --> 01:35:00,120 | by now, prove to you if you look into higher timeframe charts, if you just trade just like this, and trade in that higher time frame, directional premise. If |
| 535 | 01:35:01,470 --> 01:35:08,340 | you're not going to trade every day, and that's okay. Unfortunately, a lot of you guys think that you have to be trading every single day, and you don't. |
| 536 | 01:35:08,760 --> 01:35:21,750 | Okay. And it's, it's better if you didn't. Now, what do we have here? price comes back down. Okay. And let's look at the range here. Again, we're working |
| 537 | 01:35:23,340 --> 01:35:33,360 | with a higher timeframe premise that we're expecting bullish prices. Okay, we have this last my fib me |
| 538 | 01:35:38,460 --> 01:35:50,220 | using this low here, okay, on the one hour chart, your optimal trade entries up here. Okay. Now think you're a swing trader, right? Are you going to do your |
| 539 | 01:35:50,250 --> 01:36:01,080 | trade entries on the lowest level? Not without consulting your higher level, right? So think before we even go back to that daily chart, what do you think |
| 540 | 01:36:01,080 --> 01:36:08,580 | the ranges that you're going to be utilizing it, this is one that you could use if you just stick to the lower timeframe. And this is illustrating what happens |
| 541 | 01:36:08,580 --> 01:36:17,130 | with you guys looking at one minute and five minute charts all the time, you can't see what you need to see when you're so tight to the market. You see this |
| 542 | 01:36:17,130 --> 01:36:27,540 | old low back here, that's the enemy a term low, we have a low with a higher low and a higher low with higher lows behind it to higher low here, that's higher |
| 543 | 01:36:27,540 --> 01:36:35,280 | than this one higher low here. And now we're expecting a higher low, right, we're hunting it. So this is going to make this a long term low. Okay, now |
| 544 | 01:36:35,280 --> 01:36:49,140 | watch, you have this low to work with. And now this high. So this is the true range, this low in this high. Remember, okay, this high in this low, watch what |
| 545 | 01:36:49,140 --> 01:37:02,100 | we do, we're going to take the fib and put it on the true range, which is the daily, you'll see it now clearly. Zoom in, sorry. Okay, see the range here, we |
| 546 | 01:37:02,100 --> 01:37:11,070 | have the low, up to the new range high. And as price drops back down, we're going to take this other fish out because a little too much going on right now. |
| 547 | 01:37:13,950 --> 01:37:25,140 | You can see how we go right down into that sweet spot. And then there's your rally or not for your nice entry point for a secondary entry. Okay, so you can |
| 548 | 01:37:25,140 --> 01:37:38,850 | see the low to their high, here is the swing down in that sweet spot. So we can actually take that and put that here. Okay, and it's mapped out where the |
| 549 | 01:37:38,850 --> 01:37:47,700 | optimal trade entry is going to be. And now if we go down to the four hour, you see our price comes right down at that point. Now if you see what I'm talking |
| 550 | 01:37:47,700 --> 01:37:59,940 | about, if you're using this low to this high, this might have spooked you. Okay, but you've mapped out your trade idea from the higher timeframe daily down to |
| 551 | 01:37:59,940 --> 01:38:04,860 | your four hour, which is your middle level for swing trading, and then down to the one hour. |
| 552 | 01:38:12,960 --> 01:38:23,040 | Okay, which is where we trade into here. And now we can fine tune our entry. Okay. And what does that look like? Well, let's take this in. Don't even pretend |
| 553 | 01:38:23,040 --> 01:38:30,600 | this pretend this is not even there. Okay. We don't need to see this, the reference what we're doing on a higher timeframe. What we're looking for is the |
| 554 | 01:38:30,600 --> 01:38:39,720 | rally away, which is what we get here. And then we have this retracement down. So what do you think's going to happen over here? Well, if you take the fib port |
| 555 | 01:38:39,720 --> 01:38:50,370 | from the low, up to the high here's your sweet spot. You sending lines isn't, doesn't get touched here, but you do get the opportunity to trade in here inside |
| 556 | 01:38:50,370 --> 01:39:03,420 | this hourly candle, which forms a nice hammer. Okay, and then you have rally up. Okay? Now if you miss this opportunity here, okay, this is a swing high. Watch |
| 557 | 01:39:03,420 --> 01:39:11,670 | what happens if you miss this one, it breaks that swing high here, right? See this high here. It's broken now. So now we have another shift in market |
| 558 | 01:39:11,670 --> 01:39:21,420 | structure that's now confirming bullish prices. So now when price rallies up and starts to retrace, okay, if we miss this opportunity, we now have a new range of |
| 559 | 01:39:21,420 --> 01:39:36,300 | here, this low to this high. pull that up to the high here. And here's your 62% retracement level here. Okay. Or you could use the low that's formed right here. |
| 560 | 01:39:37,410 --> 01:39:49,650 | Okay, this is actually a New York open kill zone so you can use this swing point for reference. Again, go look at the Fibonacci concepts video, we'll talk about |
| 561 | 01:39:49,950 --> 01:40:00,690 | where I pull fibs from in cases going over your head. And you can see a high more higher level symmetry in price action here. Where comes right down to 79% |
| 562 | 01:40:00,690 --> 01:40:10,230 | retracement level and here's the 62. So he's a very nice, handsome sweet spot here on the hourly chart. Okay, so you could be positioned as well, for swing |
| 563 | 01:40:10,230 --> 01:40:20,730 | trade, they're looking for higher prices. So you can see how just by utilizing the hard timeframe premise that you can figure it out trades with the |
| 564 | 01:40:20,730 --> 01:40:32,640 | directional premise based on that position traders mindset. Okay. And really it just equates to the top down analysis that's needed. Okay, to be consistently |
| 565 | 01:40:32,850 --> 01:40:40,770 | profitable, you need to be doing the same thing over and over again. And you're looking for the higher level charts to dictate where your trades going to be in |
| 566 | 01:40:40,770 --> 01:40:51,150 | what direction, okay. Now, again, you can swing trade reversals, okay, here's an high here. And if you don't a turtle superior and swing trader that down into |
| 567 | 01:40:51,150 --> 01:40:57,630 | the optimal trade entry here, I'm not teaching that here. But you certainly can do that. And the same thing here, here's a high when price rallies up makes that |
| 568 | 01:40:57,630 --> 01:41:06,750 | new high. Overall, you're bullish higher timeframe, but you can trade these turtle suits down into a retracement and still be considered a swing trade, |
| 569 | 01:41:06,780 --> 01:41:17,820 | okay. But that's advanced stuff. And I'm not even gonna try to teach it to you. Okay. After time of doing technical analysis and trading, you'll see when you'll |
| 570 | 01:41:17,820 --> 01:41:25,620 | know personally when you are able to do these type of trades, but I'm teaching you to trade with the institutional sponsorship that's usually seen on the |
| 571 | 01:41:25,620 --> 01:41:34,200 | higher level charts like monthly, weekly and daily. Okay. So now what we're going to do is we're now going to swing down to another shorter term |
| 572 | 01:41:34,650 --> 01:41:50,250 | perspective, in this same area of price. Okay. Now, how many times have we shifted gears in terms of directional premise? Zero? None. Okay, we've arrived |
| 573 | 01:41:50,250 --> 01:42:00,720 | at the higher level timeframe, directional premise, okay. And we've established our bias based on that. We ain't guessing guys, okay, we're sticking in one |
| 574 | 01:42:00,720 --> 01:42:09,000 | camp. Okay. And it's based on where the least resistance is going to be. And it's found by studying the higher timeframe charts. Okay. So now let's take a |
| 575 | 01:42:09,000 --> 01:42:19,230 | look at short term traders mentality. And we've, again, we've mapped out this area here. So now we're looking at is a flower as our higher level timeframe. |
| 576 | 01:42:21,870 --> 01:42:31,350 | Okay, here's the for love for our chart. Okay, and much the same capacity, what you'd be looking for is key support resistance levels. Okay. And we're going to |
| 577 | 01:42:31,350 --> 01:42:40,950 | assume for a moment that we understood that this is a short term low, because we have higher lows here, and higher lows on either side of it. So now we know that |
| 578 | 01:42:41,250 --> 01:42:52,080 | we have a possible market structure to imply at least a low to the high in this market structure here. Okay, so we have this range from this low to this high. |
| 579 | 01:42:52,380 --> 01:43:00,690 | Now, it could have been the high that's formed over here, if this high was higher, in that would have been any reference point that we use for what I'm |
| 580 | 01:43:00,690 --> 01:43:07,290 | about to do. Taking the high down to that low, |
| 581 | 01:43:08,010 --> 01:43:17,610 | okay, at some point when these when is highs taken out, again, here, you can see it finding support here, we would be reasonably expecting a move to these levels |
| 582 | 01:43:17,610 --> 01:43:28,710 | up here. Okay, so just on market structure alone, we have directional premise, indicating that we have a likelihood of fulfilling a upside objective around |
| 583 | 01:43:28,710 --> 01:43:39,570 | that 161 161 50 level or so. Okay, so we have a whole lot of room trading in here to get to that point, there's a lot of pips available as a short term |
| 584 | 01:43:39,570 --> 01:43:50,250 | trader doing that. Now, again, not losing sight of this old high back here as a possible upside objective ultimately, on the higher timeframe long term position |
| 585 | 01:43:50,520 --> 01:44:05,430 | traders mindset. Now using the short term traders, for our Okay, all you're looking for really is new range, low to high. Okay. And you're going to be |
| 586 | 01:44:05,430 --> 01:44:14,370 | pulling your fibs from that in the higher time frame, directional premise going higher. Okay. And all you're doing is looking for clear structure swing points |
| 587 | 01:44:14,370 --> 01:44:24,420 | that make lows to highs and employ your fibs from it. Look how many times I'm going to draw it. Look how many times the market had given you awful trade |
| 588 | 01:44:24,420 --> 01:44:35,430 | entries in here, just in this point here, on this little area here. That's 100 pips or so a couple times that was laid on table just dealing short term trades |
| 589 | 01:44:35,430 --> 01:44:49,080 | pulling optimal trade entries on the swings, okay. But we're gonna assume that you weren't that nimble. Okay. And you seen, this is a nice area of resistance, |
| 590 | 01:44:49,260 --> 01:44:59,910 | okay, and you want to be safe. You want to be trading short term, once this level cuz there's no guarantee that this is going to provide a support level |
| 591 | 01:45:01,320 --> 01:45:09,030 | Because it's going to be a resistance level initially right? Or we would expect it to be. So as price goes through it, this is where you would trade as a short |
| 592 | 01:45:09,030 --> 01:45:19,470 | term trader. Okay, here's your short term trade here. Now, what makes it a short term trade? Well, number one, we've broken resistance now support, we're inside |
| 593 | 01:45:19,470 --> 01:45:27,930 | of a higher level directional premise on the higher timeframe, position traders mindset and swing traders mindset, we now have a very high likelihood of |
| 594 | 01:45:27,960 --> 01:45:35,340 | catching a bounce here, even if it's ultimately going to go up to this high here and fail. This has given us a short term trading opportunity, which is all true |
| 595 | 01:45:35,370 --> 01:45:45,510 | short term trader is thinking about. But now let's take a look at March market structure in terms of the setups see this old high here. Now grant, we have this |
| 596 | 01:45:45,510 --> 01:45:56,580 | high here, and this here that we noted with the resistance level. But prior to that, it's this one. Okay, see that. So we have this level of concern with this |
| 597 | 01:45:56,580 --> 01:46:08,160 | level actually becomes the 157 44 level, because that's a nice level of anticipated support. So if price does slip below that we could at least see it |
| 598 | 01:46:08,160 --> 01:46:16,410 | trade down to that point. But the point we're going to illustrate is, this is a reference point that you can pull a fib from number hidden optimal trade entry, |
| 599 | 01:46:17,160 --> 01:46:30,390 | using market structure and fibs. We have the 79 cent tracing level, converging almost right to that same level of support resistance. Okay, let me put that on |
| 600 | 01:46:30,390 --> 01:46:31,050 | a little bit better. |
| 601 | 01:46:36,330 --> 01:46:44,640 | Gabriel now here, you can see how the 79th century some level is almost converging rate with that particular price level that we've mapped out with |
| 602 | 01:46:44,670 --> 01:46:53,730 | support resistance levels. Now, let's drill down to the second chart for short term trading, which is the four hour This is your mid level timeframe. Okay, get |
| 603 | 01:46:53,730 --> 01:47:05,100 | a little bit closer view of what we're describing. Okay, and you can see how price slips through here. Okay, but you can see the reactions at that same price |
| 604 | 01:47:05,100 --> 01:47:18,510 | level. Okay. Again, I'll play devil's advocate, say you missed this one, which is fine. Because guess what, if you want to be a high odds, consistent trader, |
| 605 | 01:47:18,900 --> 01:47:26,730 | this is what you would do. You would wait. I know that's hard for you guys that get in your head patient is a very difficult thing to teach. You have to be |
| 606 | 01:47:27,150 --> 01:47:37,590 | trained, you have to sometimes be beaten mercilessly, okay, until it's ingrained in your psyche that you have to wait for certain certain things sometimes, okay, |
| 607 | 01:47:37,590 --> 01:47:48,480 | and success and trading, enforcing, you need to do these types of things and learn to wait, okay? But if you see this bounce, this is what you would expect |
| 608 | 01:47:48,480 --> 01:47:59,070 | to see. You want to see it react at that price level. But now watch, go to the left side over here and see this short term high. There's your break. So you |
| 609 | 01:47:59,070 --> 01:48:09,360 | know, you have short term market structure shift bullish. Okay, so now you are in sync looking for now new buy signals. Okay. So this high here when it's |
| 610 | 01:48:09,360 --> 01:48:20,520 | broken, okay, what you're going to do is start pulling your fibs on the swings. Now we're in a one hour chart, okay. So again, you're using the fibs on the four |
| 611 | 01:48:20,520 --> 01:48:31,410 | hour or one hour to time, the setup or establish to set up the stage. In other words, here's your range here, this low to high, you're setting it to and |
| 612 | 01:48:31,410 --> 01:48:40,020 | tracing levels laying right here converging with the level of resistance that we've already mapped out. So looking to be buying around the 157 80, which is |
| 613 | 01:48:40,020 --> 01:48:47,490 | not even the sweet spot. Okay, that's an institutional institutional, I would like to watch the 80s as a nice level. It could be a buyer at that particular |
| 614 | 01:48:47,490 --> 01:48:58,620 | price point. Okay, and then there's your short term trade. What's your position? objectives? Well, if you get into the sweet spot, getting back this old high |
| 615 | 01:48:58,620 --> 01:49:08,340 | here, there's 80 pips. Okay, now if you go back to this old market structure, swing high here. Okay, that retraced before we got down to this level of support |
| 616 | 01:49:08,340 --> 01:49:24,720 | resistance. This level here, if you took profits there, that's 120 pips. The 120 pips are here. And there's two very easy levels to derive a split position and |
| 617 | 01:49:24,720 --> 01:49:36,210 | loads of using double tap, you could take profits here, and here. Okay. Now let's look at how we have a higher low here, we have a low here, we have a |
| 618 | 01:49:36,210 --> 01:49:46,290 | higher low here, so we have March structure, implying that we're hopefully going to see higher lows and higher highs. But as we start moving forward, okay, and I |
| 619 | 01:49:46,290 --> 01:49:54,540 | didn't do this with the other timeframes because I wanted to move along, but you're going to start seeing it become more dynamic. As prices moving in the |
| 620 | 01:49:54,540 --> 01:50:01,800 | higher time frame directional premise, you want to be mapping out the resistance levels. Once they're broken, we enter They tend to become support resistance, |
| 621 | 01:50:01,980 --> 01:50:13,380 | okay? As the market begins to move higher and higher and higher, all these retracements are new opportunities to take short term trades going long. Now, if |
| 622 | 01:50:13,380 --> 01:50:24,540 | you look at the vertical lines now because now we can start looking at intraday divisions in terms of where particular days of the week are forming, you'll |
| 623 | 01:50:24,540 --> 01:50:36,090 | start seeing that we've what we've talked about for three years now, how the week's low in a bullish scenario, many times will be between Sunday's opening |
| 624 | 01:50:36,120 --> 01:50:45,090 | and Tuesdays London open and if it's not by Tuesday's London open and certainly gonna be by Wednesdays London open typically, there's 70% chance that you're |
| 625 | 01:50:45,090 --> 01:50:53,970 | going to see it. unfold this very way. So, again, don't take my word on look at your charts and you'll see it but the double lines here delineating Sundays, |
| 626 | 01:50:54,150 --> 01:51:04,050 | okay, so we have a new week here with bullishness. We have Monday's trading, Tuesday trading here is Wednesday. Okay, so here's the low that you could have |
| 627 | 01:51:04,050 --> 01:51:13,290 | traded as a short term trader. Okay, and just there you go. Short term trade couple days, up to a week. Okay. Answering on Wednesday, here's Thursday, here's |
| 628 | 01:51:13,290 --> 01:51:24,330 | Friday, three days, let's take a look at what's a pip haul would have been on that. And again, your short term trader, this is the highest level and lowest |
| 629 | 01:51:24,330 --> 01:51:30,510 | level available to you as a short term trader in a week, there's 210 pips. Okay, in one week. |
| 630 | 01:51:31,470 --> 01:51:39,600 | Now, again, we have another scenario here, we have a new level of support resistance. So you can just take this level here, |
| 631 | 01:51:49,050 --> 01:52:06,540 | draw a new one, we have new support resistance levels to work with. Short term high here, it breaks through this level here, same application of fed using old |
| 632 | 01:52:06,570 --> 01:52:17,280 | Mark structure high to a new high here. Here's your segments and tracing level here right to the pit. Okay, and you want to be a buyer here with first profit |
| 633 | 01:52:17,280 --> 01:52:26,730 | of this old low I'm sorry, his old high. He just did that. Again, directional premise is what guys, we've already arrived at it based on the higher time frame |
| 634 | 01:52:27,030 --> 01:52:35,340 | that we're looking for buys. Why? Because the institutional sponsors that that we would hopefully like to see our trades are going to be looking to be buyers. |
| 635 | 01:52:35,370 --> 01:52:47,460 | So you're 67 pips first profit. Okay, and then remaining, you know, the low forming here for this week on Monday. Okay, so over rules, you can see them |
| 636 | 01:52:47,460 --> 01:52:57,600 | unfolding to the meaning to the letter. Okay. And if you're a short term trader, you could take first profit here and hopefully weekly range. Oh, yeah, hopefully |
| 637 | 01:52:57,600 --> 01:53:10,530 | weekly range. Take some profits around Friday. Sure. Let's look at take a look at that. And not even you guys are saying what sounds unbelievable. 272 pips |
| 638 | 01:53:10,560 --> 01:53:22,080 | again inside of the same week, okay, your short term trader, that's a week or less. Okay. Now we're approaching these levels where that old high was, okay, |
| 639 | 01:53:22,080 --> 01:53:30,540 | that we're on that 163 figure. Okay, so when we trade up to that point, okay, we want to be a little bit more leery of taking new bicycles until we can see that |
| 640 | 01:53:30,540 --> 01:53:49,170 | old high being broken. And that being this height here, which we didn't do, but by pepper, so Okay, so when you see this event, okay, like this. There's a whole |
| 641 | 01:53:49,170 --> 01:53:56,550 | lot of opportunity to trade, but there's a whole lot more opportunities when you should not trade okay? And if you haven't learned that over the last three |
| 642 | 01:53:56,550 --> 01:54:06,000 | years, it's time to learn okay, because it's it's important that you understand how the markets work with the higher timeframe premise in mind working off a |
| 643 | 01:54:06,000 --> 01:54:15,330 | higher level key support resistance levels, the banks and the big players are working off these higher timeframe charts, they could they couldn't care less |
| 644 | 01:54:15,360 --> 01:54:24,360 | about your one minute chart looks like okay, your one minute chart means nothing to them. We as traders can use those to zero in on high odds entry points, but |
| 645 | 01:54:24,360 --> 01:54:35,760 | they're not guarantees that that's what the banks are using. In fact, they're not. Okay, so we've mapped out the position traders mindset, we've mapped out |
| 646 | 01:54:35,760 --> 01:54:44,250 | the swing traders mindset, we looked at short term trading. Okay, so now let's zoom down to the lowest level day traders and or scalping. Okay, and now what |
| 647 | 01:54:44,250 --> 01:54:57,420 | we're going to do is we're going to use the one hour time frame as we have here, and we're going to look at that same scenario. Okay, and that resistance level |
| 648 | 01:54:57,420 --> 01:55:13,950 | here and we have no This little move right here. Okay, there's a little move in here. We're going to break that down. And this happens to occur on September 7 |
| 649 | 01:55:14,040 --> 01:55:23,700 | of this year 2012. Okay, and we're going to go down to our 15 minute chart, what's their mid level? |
| 650 | 01:55:30,300 --> 01:55:47,640 | Okay, and actually, I call it the ninth, it was actually the seventh sorry. This is a Friday. Okay. I generally do not like to trade Fridays. But I'm just gonna |
| 651 | 01:55:47,640 --> 01:55:57,930 | give you an example of how, you know, utilizing these concepts, you can see trades that are intraday in line with the higher timeframe premise, and how they |
| 652 | 01:55:57,930 --> 01:56:07,980 | could materialize in and show some significant price gains. I'll let you look at the calendar, figure out what this is. do some homework, I'm not going to tell |
| 653 | 01:56:07,980 --> 01:56:22,380 | you everything. Again, this is a Friday. So again, have that in mind. But in this area here, you could be hunting, a setup to go long. Okay, based on just |
| 654 | 01:56:22,380 --> 01:56:35,340 | simple optimal trade entry, okay. But utilizing the worst case scenario entry, not the best, we're going to use the 62% traceable here. With a 30, Pip stop, |
| 655 | 01:56:35,430 --> 01:56:46,530 | you're down here. You didn't get stopped. Okay. Yes, that would have been 159 16. So you would have been preserved in this in this instance. Okay. But |
| 656 | 01:56:47,220 --> 01:57:00,060 | that's using with that range. Okay. Here's our old level of higher level support resistance line. Okay, all I did was drill down to 15 minutes art, this level in |
| 657 | 01:57:00,060 --> 01:57:11,850 | this high, okay becomes significant. Why? Well, because this is a range based off a higher level key support resistance levels, that you can't really see that |
| 658 | 01:57:11,850 --> 01:57:21,870 | Well, obviously, you get in hence up here. But if you're zoomed into a 15 minute chart, you can see how very quickly, price action can be skewed. It hides from |
| 659 | 01:57:21,870 --> 01:57:32,760 | you right in plain sight. Here's your range. And suddenly, you get perfect symmetry. Okay. This is what blows all the guys that are just discovering me on |
| 660 | 01:57:32,760 --> 01:57:40,920 | the internet. They're like, This is crazy. I mean, you're pulling out. So precise points. And there's nothing except for using a higher timeframe premise. |
| 661 | 01:57:41,340 --> 01:57:49,590 | drill down and looking for higher level support resistance levels, pull your fibs. Because think about it, this is a high level resistance level, once it's |
| 662 | 01:57:49,590 --> 01:57:57,990 | broken, it's going to act as support. Right? Okay, well, it doesn't find support again, over here. But it's trying to get down to that point, we want to see what |
| 663 | 01:57:58,050 --> 01:58:06,660 | if we're bullish, we want to see higher lows, so it's advantageous for us to see the higher low form. So we're stalking that. And that's why these types of |
| 664 | 01:58:06,660 --> 01:58:13,740 | setups unfold where it looks like Voodoo. Okay, we don't want to see it come back down to that level, because if it does, it's probably not going to go up |
| 665 | 01:58:13,740 --> 01:58:20,850 | even higher, it can, but the higher odds are, if it makes a higher low, that's where people are gonna be looking to be buying, okay, you want to be buying |
| 666 | 01:58:20,850 --> 01:58:29,970 | strength and selling weakness. And this is an indication of strength, because unwilling to go lower, when perhaps it might indicate that one on one or five |
| 667 | 01:58:29,970 --> 01:58:38,010 | minute chart in that little area of price action. And you can see the extrapolated price move here. And then there's nothing wrong with just using the |
| 668 | 01:58:38,010 --> 01:58:46,950 | same concepts we always talk about using the high to the low with a higher time frame, directional premise, and our swing trading, here's 162 extension in here, |
| 669 | 01:58:47,370 --> 01:58:57,000 | very handsome opportunity to take your profits. And again, if, if you've been following me, obviously, these are nothing new. I've not created a new rules or |
| 670 | 01:58:57,000 --> 01:59:08,400 | anything. But we're just applying the concepts in a structured way to hopefully facilitate a walk forward for you as a trader, to start mapping out the market |
| 671 | 01:59:08,430 --> 01:59:16,110 | and building confidence with directional premise and not over complicating it. Here's the 100 level here on your fib extension. So we have a whole lot of |
| 672 | 01:59:16,110 --> 01:59:26,970 | confidence to expect some kind of intraday profit taking and doing that. Again, getting down here and in the midpoint of that consolidation. We'll just take the |
| 673 | 01:59:26,970 --> 01:59:37,410 | extension here. Inside of one day day trade is 88 pets right there. So almost 90 pips inside of one day. Okay, and that's one week for me. Think about that. I'm |
| 674 | 01:59:37,410 --> 01:59:49,260 | only looking for 5075 pips, on average. Now you probably can't believe it. Oh, man, you got to be taken more than that. Well, I do take profits, and higher |
| 675 | 01:59:49,260 --> 01:59:56,520 | degree in terms of pips, but that's not my motivation. And that's hopefully what you are gleaning from all the material is that you don't necessarily have to be |
| 676 | 01:59:56,520 --> 02:00:06,180 | swinging for the fences, but be positioned to capture You get it, and you're hitting singles to fill the basis. And eventually, if you hit that home run, not |
| 677 | 02:00:06,180 --> 02:00:15,510 | because you expected it. But when you have the bases loaded with all your singles, then it becomes a Grand Slam and it's genuine like a wizard on the |
| 678 | 02:00:15,510 --> 02:00:27,060 | forums, you'll have a tiger woods on the golf course in the Forex world. So all these things are repeatable for you. As a trader, you can build your framework |
| 679 | 02:00:27,060 --> 02:00:30,390 | as a trader and experienced level |
| 680 | 02:00:30,660 --> 02:00:40,320 | by just using the same approach the same concepts, make them generic to you that you inherently go to them over and over and over again, you're not looking to |
| 681 | 02:00:40,320 --> 02:00:49,740 | add any more fluff to them. You're not trying to tweak them. They're very essential core principles. Okay. same premise have here. Okay, we expected this |
| 682 | 02:00:49,740 --> 02:00:57,870 | low not to be read. I'm inside this level to be retested here. Okay, we have this high here. So market structure implies that if we are in a bullish |
| 683 | 02:00:57,870 --> 02:01:05,580 | scenario, like we anticipate, okay, we're going to look for what the low and we start retracing from this high. We don't want it to come back down to that |
| 684 | 02:01:05,580 --> 02:01:15,570 | level. We don't want it to Okay, well, what will be haunting is what? Here's your range from this low on the Friday. |
| 685 | 02:01:26,280 --> 02:01:27,210 | Here's your range. |
| 686 | 02:01:31,980 --> 02:01:43,110 | Okay, here's your 60 to 62% retracement level. Okay, price comes down and your first entry. I'm sorry your entry to get long in here at this time of day is New |
| 687 | 02:01:43,110 --> 02:01:51,330 | York open. Okay. And you can see a reflection here which I'm not going to draw you can take this low to this high you'll get the actual low in here and your |
| 688 | 02:01:51,330 --> 02:02:02,910 | first profit is here. So intraday. Just trading again with the higher timeframe premise in mind only looking to be a buyer simply because we have the highest |
| 689 | 02:02:02,940 --> 02:02:18,000 | odds of seeing profit. Here's 50 pips intraday. Okay, again, that's a week for me. Okay? We have a higher low here, okay. And look at the optimal trade entry |
| 690 | 02:02:18,000 --> 02:02:30,450 | in here. Okay, we broke this high here. And there's your retracement, pull out the tray entry. From the low to this high, you'll get the actual low here |
| 691 | 02:02:30,810 --> 02:02:40,950 | formed. And this is the London open. What day the week, Tuesday. Okay, we had the week's low on Monday, we have a confirmation of continuation going higher on |
| 692 | 02:02:40,950 --> 02:02:51,030 | Tuesday, again, looking for buys right or not. Now again, see this purple area, there's all this backdrop is that higher level mapping that we did, okay, we've |
| 693 | 02:02:51,030 --> 02:03:01,530 | mapped out where the highest level of probability and directional premise is most likely to occur. And it keeps us focused on one, one direction, okay, and |
| 694 | 02:03:01,560 --> 02:03:10,740 | something just occurred to me while I just said that, I have this set with purple, okay, you may have this for your setup. If you can tolerate the color, |
| 695 | 02:03:10,950 --> 02:03:19,080 | maybe it could be green as a backdrop to you, that could be your subliminal indication that, hey, look, man, look at the charts, I'm really focusing on |
| 696 | 02:03:19,080 --> 02:03:28,350 | buying because green being bullish, or maybe you don't think green is bullish, but, you know, maybe you can attribute to whatever color you want it to be. And |
| 697 | 02:03:28,680 --> 02:03:38,070 | maybe it makes it a red color, or a red tint of some kind, or a pink or something like that, or whatever color you want to attribute to as a sell |
| 698 | 02:03:38,250 --> 02:03:47,970 | scenario. So that way, you're always looking to chart with him with a bearish mentality. Okay. And, again, there's not there's no rocket science behind this, |
| 699 | 02:03:48,000 --> 02:03:57,420 | it's it's very simple approach to doing it. You haven't complicated the matter, we stuck to just trading off of the higher timeframe premise. Okay? And that's |
| 700 | 02:03:57,420 --> 02:04:06,540 | your directional premise. Okay, that's your directional premise. You don't trade every day. You don't anticipate trading every day, okay? And you just wait for |
| 701 | 02:04:06,540 --> 02:04:16,980 | the setups that really line up with what you're looking to do as a trader. Okay. And when you get to the point where you can start trading very consistently, |
| 702 | 02:04:17,250 --> 02:04:29,820 | you'll start seeing the market to all of these timeframes at one time, okay, you'll, you'll start seeing it in a manner where you'll know you can move from |
| 703 | 02:04:29,820 --> 02:04:45,810 | one timeframe or style trading to another. And it won't be anything to you to do that. It won't it won't take your mind away from you know, what you need you |
| 704 | 02:04:45,810 --> 02:04:55,470 | doing on the short term. If you're a higher timeframe, position trader, you could work within both directions of the marketplace. And there's nothing wrong |
| 705 | 02:04:55,470 --> 02:05:05,310 | with that, but there's a growing period it's going to be needed to get to that point. As long as you are comfortable with that, it's not going to be, you know, |
| 706 | 02:05:07,110 --> 02:05:18,450 | hopefully disappointing to you as you grow and you have growing pains. So, again, let's recap this and put this video to bed. When you look for directional |
| 707 | 02:05:18,450 --> 02:05:26,520 | premise, obviously you're looking at the monthly, weekly and daily, that's your position traders mindset. Okay, so every trade should have that in the forefront |
| 708 | 02:05:26,550 --> 02:05:33,780 | of your mind. Now where's where's the highest probability in terms of direction most likely to occur, you're going to find that by looking at that higher level |
| 709 | 02:05:33,780 --> 02:05:40,620 | monthly, weekly and daily, find the key support resistance levels, determine the market structure, market profiling, all these things that we talked about in |
| 710 | 02:05:40,620 --> 02:05:51,420 | previous market teachings are applicable here. And obviously, a swing trader, you're using the daily the four hour and one hour, again, looking for trades in |
| 711 | 02:05:51,420 --> 02:06:01,560 | a directional premise that's arrived at the position traders mentality, okay. The short term trader, obviously using the four hour one hour and 15 minute time |
| 712 | 02:06:01,560 --> 02:06:13,230 | frame, okay, that same approach to trading still will use those central tenants that you arrive at with the position trader and swing traders mindset. Okay, |
| 713 | 02:06:13,470 --> 02:06:22,260 | nothing's changing. There's no confusion, okay? I've seen guys get frustrated, say, Well, how can we trade if it's always, something's always changing? what's |
| 714 | 02:06:22,260 --> 02:06:29,700 | changing, guys, the dates changing, okay, new opportunities are presenting themselves. But nothing's changed in the higher timeframe. |
| 715 | 02:06:30,240 --> 02:06:37,920 | Okay, you're still either going to be going up, or you're still going to be going down in the higher time frame, predominantly one way or the other. Okay, |
| 716 | 02:06:37,920 --> 02:06:45,630 | it's going to be heavy weighted either to the bullish side or the bearish side, unless you're in a very, very tight, discernible consolidation we've already |
| 717 | 02:06:45,630 --> 02:06:55,560 | shown. And that's why I really highlighted this is an example, the cable where we were in is really tight consolidation down in here. This is still applicable. |
| 718 | 02:06:56,010 --> 02:07:04,290 | I mean, there's a lot of opportunity to be made in this little consolidation that may be viewed as consolidation small in some people's eyes. But there's a |
| 719 | 02:07:04,290 --> 02:07:14,400 | lot of opportunity to be making money in all this, before we even got all this rat or this rally up. This is crane, you want to be able to trade inside of this |
| 720 | 02:07:14,580 --> 02:07:23,760 | and still make money. Okay? And that's where you simply use the inside the range concepts, and it's done. You know exactly what you're doing. Okay? And there's |
| 721 | 02:07:23,760 --> 02:07:33,780 | no reason for you to be struggling, trying to figure out what the directional premise should be. There's no reason for that, okay? Just look at the higher |
| 722 | 02:07:33,780 --> 02:07:43,470 | timeframes, break your market down from the top down, okay, and stick to that. Only trade in that direction, guess what that's gonna mean, you're going to |
| 723 | 02:07:43,470 --> 02:07:53,280 | probably miss some trades. And guess what, there's absolutely nothing wrong with that. I miss a million trades. And some of them were absolutely barn burners. |
| 724 | 02:07:53,910 --> 02:08:02,100 | And I would have seen him coming. And many times, I could have probably easily done that the counter trend trade. But I don't care. Because I want to have a |
| 725 | 02:08:02,100 --> 02:08:13,350 | life I'm comfortable with, with the amount of money I make. And I'm very complacent with the approach that I've adopted as a trader, I've done all this |
| 726 | 02:08:13,380 --> 02:08:22,560 | stuff that you want to be doing right now, scalping 15 times a day, and 40 times a week and 300 by the end of the month, that's great. If you want to be you want |
| 727 | 02:08:22,560 --> 02:08:31,740 | to be that type of trader, go right ahead, and I wish you profits. But I think over time, if you can sustain yourself, you're gonna find that it's a lot more |
| 728 | 02:08:33,630 --> 02:08:43,830 | lucrative, okay, to be passive. In trading, you don't have to be in here all the time. In fact, my stress level is next to nothing, because I don't spend that |
| 729 | 02:08:43,830 --> 02:08:53,310 | much time in there. Okay, actually stress more about doing these videos for you guys than I do trading. And, you know, that's really what it gets to, you know, |
| 730 | 02:08:53,730 --> 02:09:03,030 | are you doing this to make money and have a better life? Or are you doing this to compete, and if you're in here to compete, you don't for the wrong reasons. |
| 731 | 02:09:03,150 --> 02:09:12,360 | Okay? Number one, it's to make money, and you want to be making money and having a very nice life. And you can do that while you're building your equity. Okay, |
| 732 | 02:09:12,360 --> 02:09:19,950 | and when you have a whole lot more money at work, and you're taking these types of trades, it's unbelievable how much money can come into your account just on a |
| 733 | 02:09:19,950 --> 02:09:32,490 | weekly basis, let alone for the year. So again, hopefully, this has been insightful to you guys. And it's been one more step further for you to be |
| 734 | 02:09:32,490 --> 02:09:42,840 | developing a directional premise. And again, we didn't apply every tool, I just stuck to the core principles, keeping your focus on what's essential. Okay, we |
| 735 | 02:09:42,840 --> 02:09:49,230 | talked about core essentials of the market structure. We talked about core essentials with directional premise from the higher time frame deck direction, |
| 736 | 02:09:49,560 --> 02:09:59,190 | or premise from a top down perspective. And that's it, that's all you need. Now, when you have that premise in mind, you can apply all these other tools that are |
| 737 | 02:09:59,190 --> 02:10:10,590 | applicable Based on the specific criteria for that given day or week or month, whatever type of timeframe you're looking at based on your style tree. Okay, so |
| 738 | 02:10:10,590 --> 02:10:12,990 | with that guys, I wish you good luck and good trading |