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2 |1 |00:00:12,420 ~-~-> 00:00:27,510 |ICT: Okay, folks, good afternoon. Okay, we're gonna take a look at the Canadian dollar. Alright, so we have on the daily chart on the left hand side, you'll see
3 |2 |00:00:27,510 ~-~-> 00:00:41,610 |that price has pulled back into a rather deep retracement. And I'm using this body here. Now, obviously, I could have done this, okay and use the Sunday
4 |3 |00:00:41,610 ~-~-> 00:00:52,110 |candle. You want to do that and certainly nothing wrong with that you'd still get down into optimal trade entry. I'm using this right here, the open on this
5 |4 |00:00:52,110 ~-~-> 00:01:05,130 |candle here. So I want to stick to weekdays, not Sunday candles. So I'm really ignoring this candle here. And this candle actually comes in on the 22nd. Okay,
6 |5 |00:01:05,130 ~-~-> 00:01:22,980 |so we're going to ignore that of October. And we're going to go with the 23rd. Okay, which is a Monday. Just guys see it. Back one month. Here's the Sunday and
7 |6 |00:01:22,980 ~-~-> 00:01:43,350 |we're using the 23rd, which is a Monday. Again, that's this candle. Right here. Right there at 23rd. So that's the Monday, October 23 of 2017. You'll notice on
8 |7 |00:01:43,350 ~-~-> 00:01:55,170 |this day, okay. disregard this candle for a moment. Okay, just imagine that it's not there. Okay, for platforms that don't have Sunday candles, what you would be
9 |8 |00:01:55,170 ~-~-> 00:02:05,130 |left with is a large candle here on the previous Friday. And then Monday's candle here, and then Tuesday. Okay, so in the event that we don't have Sunday
10 |9 |00:02:05,130 ~-~-> 00:02:16,620 |candles, because I've had this regard them among presentations using this platform, this up candle and then Monday's trading, then Tuesday's higher low.
11 |10 |00:02:17,250 ~-~-> 00:02:31,230 |Okay, This to me is a continued swing low. Okay, so for your notes, it's called a continued swing low. That means if we have a big run up, we have a candle
12 |11 |00:02:31,320 ~-~-> 00:02:41,610 |immediately after the big up candle. Then we have another candle. That's a higher low. Okay, is it continued? swing low. Okay, so now what you're not
13 |12 |00:02:41,790 ~-~-> 00:02:54,180 |requiring the retracement, if you see this happening here. Now, let me preface it by saying that it's only a continued swing low if the market is bullish. Now
14 |13 |00:02:54,180 ~-~-> 00:03:04,740 |obviously, if you see this environment here, big up candle in this short little swing low type pattern explaining this could many times if it's not bullish,
15 |14 |00:03:04,770 ~-~-> 00:03:11,700 |this could be the top of the marketplace and it starts to come down. So it's not just candlestick patterns. And it's not swing highs and swing lows that fixes
16 |15 |00:03:11,910 ~-~-> 00:03:22,140 |the problem with profitability or consistency. It you still have to have a context understood about where price is most likely going to go. So I'm going to
17 |16 |00:03:22,260 ~-~-> 00:03:33,450 |forego that discussion for the tutorials. But for right now, this formation right here, after a big large candle, one candle, and then a higher low candle.
18 |17 |00:03:33,480 ~-~-> 00:03:45,660 |This is a continued swing low. Okay. So when we have that, we can use that as an anchor point. Okay, and again, this regardless on this candle, and you run that
19 |18 |00:03:45,660 ~-~-> 00:03:58,410 |up now for folks that just simply can't agree with what I'm presenting here today. And you're going to arm wrestle me? Or at least try to arm wrestle me
20 |19 |00:03:58,650 ~-~-> 00:04:07,290 |saying oh, well, you know, this is all hindsight to say nothing long short of it is check it, test it. And you'll see it's many times it's in the charts a lot.
21 |20 |00:04:07,410 ~-~-> 00:04:16,740 |Okay, so even if I were just to use this candle here, we're used to Sunday's candle because it is a swing low. In that case, it still gets you to optimal
22 |21 |00:04:16,740 ~-~-> 00:04:26,100 |trade entry. So these candles in here yesterday, Monday's trading, and in today's trading, they are reacting off of that optimal trade entry. So no matter
23 |22 |00:04:26,100 ~-~-> 00:04:33,960 |how you slice it, it is what it is. Okay, so I'm telling you how I did it and how I framed it. So this is what I did. So now we know on a daily chart, we are
24 |23 |00:04:33,960 ~-~-> 00:04:45,390 |in an area where we could potentially see a support level form based on the optimal trade entry 70.5 level. Okay, it comes in, in this daily chart, but this
25 |24 |00:04:45,390 ~-~-> 00:04:59,010 |platform and this data is 127 11. Okay, so now we're gonna go over to the 15 minute timeframe and set up our scalps and drop a horizontal line here and I'll
26 |25 |00:04:59,010 ~-~-> 00:05:09,900 |put that right on. The 11th level. Okay, and I'm going to add midnight New York time right there.
27 |26 |00:05:10,800 ~-~-> 00:05:22,440 |So you can see how price has rallied away, came back down dropped into and then price immediately after New York midnight time for running aggressively when
28 |27 |00:05:22,440 ~-~-> 00:05:32,850 |prices start off, right after midnight like this, okay, many of you understand my power three concept where r three stands for accumulation distribution and
29 |28 |00:05:32,850 ~-~-> 00:05:43,560 |manipulation. Okay, that's what power three is. So what would be understood in terms of power three would be the open and accumulation. Okay, so it's one of
30 |29 |00:05:43,560 ~-~-> 00:05:54,030 |three. Okay, the manipulation, the drop down here. Okay, and the rally up, and the distribution here creating the highly day. I'll tell you why that was
31 |30 |00:05:54,180 ~-~-> 00:06:03,780 |probably in a couple minutes. But power three is accumulation and distribution and manipulation. Those three components make up the overall price action from
32 |31 |00:06:03,780 ~-~-> 00:06:21,750 |an institutional mindset and from a smart money perspective. So we have the previous day's high, which is seen here. Okay, so I'm going to take this, drop
33 |32 |00:06:21,750 ~-~-> 00:06:43,950 |it right there. Okay, and I'm just gonna change it a little bit, just so we can distinguish it from the other. Okay, now we have previous day's high right here.
34 |33 |00:06:45,990 ~-~-> 00:06:57,270 |Price gives a immediate run away. Now, the reason why daily intraday price action does this right after New York midnight, is because it's reacting off of
35 |34 |00:06:57,270 ~-~-> 00:07:07,470 |a daily higher timeframe or weekly timeframe. Okay. That's when that's what causes season one way shots right after midnight in New York time. Many times,
36 |35 |00:07:07,470 ~-~-> 00:07:16,110 |you'll see as my tutorials teach that it'll open it's bullish and drop down into around two o'clock, three o'clock in the morning, New York time, create a low of
37 |36 |00:07:16,110 ~-~-> 00:07:23,250 |the day and then rally up and do the same thing here. And in this particular day, it doesn't do that. And the reason why it's because it's moving off of a
38 |37 |00:07:23,250 ~-~-> 00:07:36,600 |higher timeframe daily level. Okay, so put that in your notes as well. So price starts to trade higher and does in fact run previous day's high right here. Now,
39 |38 |00:07:37,020 ~-~-> 00:07:46,710 |when we look for intraday levels, we look for 10 to 20 PIP price swings as my tutorials teach, and I'm just going to quickly put that lipstick on the chart.
40 |39 |00:07:48,540 ~-~-> 00:08:01,410 |Okay, and we're gonna put our line right here and we're gonna draw a rectangle up 20 pips is right there. Okay. There's 20 pips above the previous day's high.
41 |40 |00:08:02,190 ~-~-> 00:08:04,020 |And that takes us to about
42 |41 |00:08:09,420 ~-~-> 00:08:27,930 |right there. Okay, so 120 804. So 120 804 is above the big figure of 128 00. Okay. So, if we're expecting as I was expecting higher prices on dollar CAD, the
43 |42 |00:08:27,930 ~-~-> 00:08:36,210 |reason why I was expecting hard dollar CAD prices is if I go back over to the daily chart on Dollar Index, dollar index hasn't really shown a willingness to
44 |43 |00:08:36,210 ~-~-> 00:08:44,970 |break down yet. Okay, it's actually inside of a pattern, it looks to me, at least for the short term that would be neutral to bullish, I don't see it
45 |44 |00:08:44,970 ~-~-> 00:08:53,070 |wanting to go lower, it's being held in a rather tight dealing range now, it doesn't mean that it can't break down from here it just meant as I went into
46 |45 |00:08:53,100 ~-~-> 00:09:00,630 |trade today's trading I didn't feel that it was going to break down about because the dollar was being held in consolidation. And that would be at least
47 |46 |00:09:00,630 ~-~-> 00:09:11,130 |for me bolster with weakness on Canadian dollar allow the dollar CAD paired the rally because the dollar is the first in the in the pairs name and in Canadian
48 |47 |00:09:11,130 ~-~-> 00:09:19,830 |dollar. So when this currency is rallying, that means Canadian is weaker compared to the dollar. And since dollars being held in consolidation, and
49 |48 |00:09:20,400 ~-~-> 00:09:32,700 |weakness in Canadian dollar will propel this particular forex pair higher. Now I'm going to take you into the actual nuts and bolts of today's discussion.
50 |49 |00:09:34,560 ~-~-> 00:09:44,220 |Okay, and here is the action based on what I saw, this is an average daily range. Okay, now notice average daily range is actually the same thing as
51 |50 |00:09:44,220 ~-~-> 00:09:54,300 |previous day's high as well. Okay, within an earshot of it. We're gonna look at this price action right in here, but we had to zoom in a little bit before right
52 |51 |00:09:54,300 ~-~-> 00:10:05,460 |now, I want you to remember the context I gave you for optimal trade entry. They form At institutional price levels, they are called by many circles as
53 |52 |00:10:05,490 ~-~-> 00:10:15,240 |psychological levels. There's nothing psychological about these things. Okay? institutions use round numbers for their orders, because it makes it easy to put
54 |53 |00:10:15,240 ~-~-> 00:10:23,370 |in large blocks of orders. That's it. Okay. That's the real reason what causes the market to trade around zero levels. Okay. And that's what it is. It's
55 |54 |00:10:23,370 ~-~-> 00:10:31,440 |20s 80s because they go beyond the big figures, 00 levels, above or below it, depending on if you're bearish or bullish. And I'll explain that in a minute.
56 |55 |00:10:32,550 ~-~-> 00:10:44,430 |And the mid figure, okay, like 127 50, that's a mid figure level. Okay. Then we have 127 80, which is the next institutional price level price, then, I was
57 |56 |00:10:44,430 ~-~-> 00:10:55,350 |looking at 127 97, because it's three pips just before the 128. Big figure. Okay, so that's the reason why I wanted that price level. And secondly, we know
58 |57 |00:10:55,350 ~-~-> 00:11:05,430 |that 120 is the big figure. And then right above that, we'll have 10 pips, which is 128 10. And then 128 20. Okay, and whenever we have a big figure, my
59 |58 |00:11:05,430 ~-~-> 00:11:16,590 |tutorials teach, and you'll see that it goes 10 to 20 pips above intraday highs, and a 20, Pip sweep takes us exactly up to 120 20. That's all I'm showing you
60 |59 |00:11:16,590 ~-~-> 00:11:22,920 |here with this triangle here, just highlighting the fact that it's a sweep above the 120. Big figure. So please don't read too much into the geometry on this
61 |60 |00:11:22,920 ~-~-> 00:11:34,980 |chart. It's not there to draw any more attention that's necessary. But I want you to take a look at the kill zone, see t children, okay. And you can see I
62 |61 |00:11:34,980 ~-~-> 00:11:44,910 |have the body on the swing low, open on this candle is the lowest of the body reference points open or close, get the low and higher, low, higher low to the
63 |62 |00:11:44,910 ~-~-> 00:12:00,120 |left and right of it. Okay, and price trading up to this swing high. And this candles open is going to show up here on 2761. Okay, in price trades down from
64 |63 |00:12:00,120 ~-~-> 00:12:09,270 |that into optimal trade entry, and this level is the minifigure level. So we have an optimal trade entry occurring exactly where I taught you. They occur at
65 |64 |00:12:09,390 ~-~-> 00:12:22,680 |a figure, okay, in a time when dollar CAD is bullish, at a time when there's a kill zones in New York kill zone. Okay. And I went in, after missing the actual
66 |65 |00:12:22,680 ~-~-> 00:12:29,730 |entry in here because the actual entry came in, right before the New York kills him. So I wasn't able to get that price level. So what I'm trying to show you
67 |66 |00:12:29,730 ~-~-> 00:12:40,230 |today is, and I've done this, in several instances throughout the last four weeks or so, I'm actually not trying to give you the precision entries where
68 |67 |00:12:40,230 ~-~-> 00:12:47,640 |you've seen me do exercises and drills where I practice and get in there. And I get in exactly at the PIP, I'm actually calling the very highs and weekly lows.
69 |68 |00:12:47,970 ~-~-> 00:12:55,980 |And you see me do it on a daily basis where I can pull them out and show you where they're at within one or two pips many times, but I'm usually pretty
70 |69 |00:12:55,980 ~-~-> 00:13:05,040 |accurate in terms of where I think it's going to occur. You do not need that, to trade with consistency. That's what I'm trying to illustrate here. So there's
71 |70 |00:13:05,040 ~-~-> 00:13:08,970 |gonna be times where you missed an entry that would be ideal. I missed it because it didn't happen in the kill zone.
72 |71 |00:13:09,000 ~-~-> 00:13:20,940 |You can see this candle Here comes in at 1045. Now that's 6:45am my time in New York. So the next candle, which is what I entered in, okay, is one price is
73 |72 |00:13:20,940 ~-~-> 00:13:32,100 |already moving away. But because we have not traded through the reference point that would start the sling. Now I'm using the high for this now, not the body.
74 |73 |00:13:32,160 ~-~-> 00:13:41,340 |This is when you want to bring in the wicks from the point in which you draw the fib up to you want to find the highest high. Okay, as long as we're at that
75 |74 |00:13:41,340 ~-~-> 00:13:50,490 |level or below it, I would be okay with getting long one. That's what makes it or breaks it for me. Okay, I asked you guys on Twitter today, what would be the
76 |75 |00:13:50,490 ~-~-> 00:14:01,500 |absolute latest time you can use for an entry? It's where your first scalping profit taking level is, it's got to be at or below that. Otherwise, it's not you
77 |76 |00:14:01,500 ~-~-> 00:14:11,070 |can't take the trade. Okay, so there's your trade filter, very simple one. But I'm assuming here on a five minute basis, we'll drop out of 15 minutes. As you
78 |77 |00:14:11,070 ~-~-> 00:14:24,990 |can see, now here, the chart looks slightly different. Okay. But you can see that the levels I was trying to take my profit out here was exactly at 127 97. I
79 |78 |00:14:24,990 ~-~-> 00:14:35,310 |wanted to get out right before the 128 big figure actually gave me the exit as it ramped up into the 120 big finger. And that swept through another portion of
80 |79 |00:14:35,340 ~-~-> 00:14:46,590 |the market was peeled off at 128 10. And then ultimately, look at the the legend maker on the Fibonacci. Now I'm going to remove these level labels here cuz I'm
81 |80 |00:14:46,590 ~-~-> 00:14:57,960 |trying to be facetious. And if you watch the Twitter feed, everyone's asking me like this one here says the showstopper and the legend maker. I did that. Just
82 |81 |00:14:57,960 ~-~-> 00:15:09,570 |to illustrate how Retail minded traders get really excited about these labels and these indicator ideas, okay? Fibonacci is just a measuring tool I use. And I
83 |82 |00:15:09,570 ~-~-> 00:15:18,570 |use it for like, targeting, I don't use it so much for entry, I use it to teach where an entry would be an ideal or optimal level. But you don't need to
84 |83 |00:15:18,570 ~-~-> 00:15:27,660 |Fibonacci. Now I do rely on Fibonacci for profit taking, I like to see some things overlap to give me confidence that that's a pretty good level. Because
85 |84 |00:15:27,690 ~-~-> 00:15:36,030 |always upfront and honest with you, in regards to what my weaknesses as a trader, it's the exits, I'm never really satisfied with my exit. So this has
86 |85 |00:15:36,030 ~-~-> 00:15:45,840 |been a way for me to really nail down a specific criteria where it doesn't change all the time. It's just wherever a fib level is, if it lines up with
87 |86 |00:15:45,840 ~-~-> 00:15:52,710 |something else I look at from an institutional basis, which I'm not going to teach publicly, then that's where I exit. Okay. And many times, I'm actually
88 |87 |00:15:52,710 ~-~-> 00:16:02,790 |excellent before that anyway, so it is what it is. But you can see I got out right before the actual highest high of the day. And legend maker Fibonacci was
89 |88 |00:16:02,790 ~-~-> 00:16:12,180 |just shy of the actual high today. So in that case, it would have been very close to calling the daily high. So it is what it is, I gave you an example of
90 |89 |00:16:12,690 ~-~-> 00:16:22,290 |trying to take profits. Today, I'll give you a screenshot of where this demo account was rejecting my price wouldn't give me the actual high. And I was
91 |90 |00:16:22,290 ~-~-> 00:16:29,580 |trying to do that in here. And it wouldn't, it wouldn't let me do it. So I ended up having to get out here didn't want to ride back any of this, and ultimately
92 |91 |00:16:30,150 ~-~-> 00:16:45,090 |allowed me to take the two final portions off, as the price rammed up into the 128 20 level. Now, the actual high on this day comes in at exactly 128 20. Now,
93 |92 |00:16:45,300 ~-~-> 00:16:57,780 |for your notes, this is very, very, very important. If you ever see a swing that sets up at a mid figure, I anticipate it reaching up to the 2780 level as an
94 |93 |00:16:57,780 ~-~-> 00:17:08,310 |objective. And if it trades through 127 at anticipated rating, the 128. Or I'm saying there's no way specifically for this pair. But if you're trading, ever
95 |94 |00:17:08,310 ~-~-> 00:17:16,470 |set up long ends up forming around the mid figure 50 level and you're bullish, anticipated trading up to the next 80 level. And if it trades through 80 with
96 |95 |00:17:16,470 ~-~-> 00:17:28,470 |energy, anticipate it running through the next 00 level. Okay. And always, always anticipate some measure of 10 to 20 pips above that big figure. That's
97 |96 |00:17:28,470 ~-~-> 00:17:39,060 |what these institutional levels are for, if nothing psychological about it, because honestly, markets don't move on psychology. Psychology is measured in
98 |97 |00:17:39,060 ~-~-> 00:17:48,360 |what price has done, and what traders will most likely due. But think about what you most likely one of the last time last week, did you really execute on it?
99 |98 |00:17:48,360 ~-~-> 00:18:01,350 |No. So Marcus don't move on psychology. Okay. They don't do that. They move on real market orders. Now sentiment is a derivative of what markets do. But
100 |99 |00:18:01,560 ~-~-> 00:18:02,730 |sentiment and
101 |100 |00:18:03,720 ~-~-> 00:18:15,750 |opinions, if you will, they are not the hallmarks to consistency. I don't use any thing about my trading. That's retail based. Okay, the only thing that's
102 |101 |00:18:16,590 ~-~-> 00:18:25,440 |resembles retail is if I have a Fibonacci on the chart, you know, right away, they'll think it's Elliott Wave or something to that effect. And it's not I use
103 |102 |00:18:25,440 ~-~-> 00:18:34,170 |fibs for targeting. And the entry for optimal trade entry is just for you to see what I'm seeing in the general area. But believe me, there's something entirely
104 |103 |00:18:34,170 ~-~-> 00:18:42,780 |different except for just that Fibonacci level. Okay, 60 to 70% trace level is not the magic I'm looking at. Okay? The mentorship knows what I'm looking for.
105 |104 |00:18:42,780 ~-~-> 00:18:51,270 |But for now, for public perspective, it is enough to suffice and accomplish the means that's necessary for me to teach it to you. Okay, you can keep a fib on
106 |105 |00:18:51,270 ~-~-> 00:18:57,330 |your chart the rest of your career and never want to get rid of it and there's nothing wrong with it. Okay, if you need that crutch to get into the trade,
107 |106 |00:18:57,540 ~-~-> 00:19:07,020 |there's absolutely zero shame in having that, you know, it is what it is. Don't worry about it. But that's what I was using today. And you can see pretty much
108 |107 |00:19:07,020 ~-~-> 00:19:17,040 |it has a real nice reaction off of that. See price had a real nice response back off that 128 figure and now we've broken down again. Okay, so hopefully you
109 |108 |00:19:17,040 ~-~-> 00:19:21,600 |found this example insightful, and until next time, I wish you good luck and good trading.