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Mastering High Probability Scalping Vol 1 of 3.srt

Last modified by Drunk Monkey on 2021-06-11 13:41
1 00:00:11,820 --> 00:00:23,940 ICT: Hi, folks, welcome to volume one of three, four, mastering high probability scalping. Now, this is a video that's going to be kept on my YouTube channel.
2 00:00:24,570 --> 00:00:37,080 And generally, anything that's predominantly linked to just, my youtube channel will have this intro. And I'm going to ask you as the trading community to help
3 00:00:37,080 --> 00:00:47,220 me out, a lot of times folks will take my content and re upload it on our own YouTube channel. And if you see that, just let me know. And I'd like to have
4 00:00:47,220 --> 00:00:58,020 that taken down. I put the work into these presentations. So I'd like to be able to get the credit and the benefit of ad revenue off of it. So if you see it,
5 00:00:58,320 --> 00:01:06,810 just let me know. And I appreciate you don't have to be public about it can send me an email at inner circle trader@gmail.com. I greatly appreciate it. Thanks.
6 00:01:11,580 --> 00:01:21,120 Alright, so before we begin, I'm gonna ask you a question, what is high probability scalps? Every one of us would have a different definition, I'm
7 00:01:21,120 --> 00:01:33,150 certain of it. But for me as ICT it's 10 to 30 PIP price swings. Now, I don't do a lot of this type of trading. It's only recently because I've come back online,
8 00:01:33,150 --> 00:01:44,280 and it gives me an opportunity to give them a lot of setups, a lot of results, a lot of things to study. I guess it's probably one of the easiest things to get
9 00:01:44,280 --> 00:01:53,610 people excited. And I know that going in. And that's the reason why I adopted this style of showcasing our talents. But I don't want you to think this is the
10 00:01:53,610 --> 00:02:02,340 only way you can trade the markets, because it's not, there's certainly ways you can do a front end of the standpoint. But I want you to know that what I teach,
11 00:02:02,700 --> 00:02:13,950 has consistency, and also has the ability to prove right away that the markets are not, in fact, random at all. They're very, very organized, they're very
12 00:02:13,950 --> 00:02:23,010 specific about where they're trying to get to intraday, and even on a weekly basis. And I would probably argue the point on an even longer term basis, but I
13 00:02:23,010 --> 00:02:32,010 just haven't made my position that long term game. I don't think I ever will. Personally it's not my cup of tea, I like day trading and short term trading.
14 00:02:32,190 --> 00:02:39,960 One shot one kills what I'm known for, which is trading the weekly range. So daily highs and lows are my specialty. And weekly highs and lows are my
15 00:02:39,960 --> 00:02:47,970 specialty. So I tried to trade inside those ranges. And I get the meat or hopefully the meat of the move, not trying to get the very high or very low. But
16 00:02:47,970 --> 00:02:56,460 I know where those parameters are. And as long as I haven't met those extremes, I know I have opportunity or life in the battery, if you will. Alright, so we're
17 00:02:56,460 --> 00:03:03,630 gonna be focusing on specific things in this presentation, it's not gonna be very long, I want to keep them concise and short. And again, it's three volumes
18 00:03:03,630 --> 00:03:11,370 that if any questions come up by why you're watching this, it's important that every time you watch any of my videos, have a notepad in hand, turn the radio
19 00:03:11,370 --> 00:03:23,370 off, go into a quiet room, listen to what I'm saying, because I'm packing 20 plus years of information and experience in very, very small bandwidth. So just
20 00:03:23,490 --> 00:03:31,920 write down your questions, I'm quite certain that you're gonna be able to find the answers to them in future presentations. For this one, we'll be highlighting
21 00:03:31,920 --> 00:03:40,500 the many opportunities in scalping the Forex will be teaching you how to learn directional bias for higher timeframe institutional sponsorship, and I'll
22 00:03:40,500 --> 00:03:49,050 explain what that is when we get to it. And how to determine the highest probable times of the day trade. And we're going to be learning how to frame
23 00:03:49,050 --> 00:04:01,650 high probability setups for runs on liquidity. Sounds pretty fancy, I know. Alright, so high probability scalping. And this is an example of a high
24 00:04:01,650 --> 00:04:10,260 probability scalp and this is in the dollar CAD. Now right away some of you are gonna be watching this video months and years from the time actually presented
25 00:04:10,260 --> 00:04:22,590 it. Trust me. I tweeted live and people watched this actually be shown to them live Okay, this actually was a weekly high at the time of this presentation, but
26 00:04:22,590 --> 00:04:34,200 I was calling them a weekly and daily Hi. Looking at this specific range, everything that's in here is all that is necessary to know how to do short term
27 00:04:34,200 --> 00:04:45,390 scalping intraday now, because it's scalping. But there's gonna be times when these setups overlap with longer term conditions. Now, I'm not teaching one shot
28 00:04:45,390 --> 00:04:52,470 one kill here. I'm not teaching swing trading or position trading, but I will drop that little nugget for you to study.
29 00:04:52,830 --> 00:05:02,400 It's obviously found in my free tutorials. You can find that on my website about inner circle trader dot As a free forum, you can join, join that, it's
30 00:05:02,400 --> 00:05:11,310 absolutely free to get in there and you can watch all my free tutorials that I'm releasing. And you'll also be able to see some things I share in trading journal
31 00:05:11,460 --> 00:05:20,790 entry. So you can give me an opportunity to speak to you by way of how I interpret and reflect on what has been seen in the marketplace when I take
32 00:05:20,790 --> 00:05:28,710 action. Or if I take action and I lose, you kind of get a vibe on what it is I've either felt or what I was thinking during the day when I was looking at the
33 00:05:28,710 --> 00:05:40,350 marketplace. But short term scalp here is a very simple approach to running out previous day's highs or previous day's lows. That's all it is, we're targeting,
34 00:05:40,890 --> 00:05:50,040 buy stops above the previous day's high or a day or two ago. Now words, we're always gonna be looking back the last three days, okay, there's your, there's
35 00:05:50,040 --> 00:05:58,440 your range, okay, you're gonna be looking back at the highest high and the lowest low in the last three days. Now you're counting today as they want. So
36 00:05:58,440 --> 00:06:07,290 for instance, at the time of this recording, the day of the week is Thursday. So we will be looking at Wednesday's data, and Tuesday's data, very easy rules,
37 00:06:07,290 --> 00:06:15,750 right? So we know what the daily high and the low is on Tuesday, and on Wednesday, and we're monitoring what's going on intraday for today, and that
38 00:06:15,750 --> 00:06:29,220 would be Thursday at the time of this recording in November 2 2017. Now, what we're aiming for, is exactly how bank traders trade. Now, I know a lot of folks
39 00:06:29,250 --> 00:06:38,070 on YouTube claim to know certain things and they use a lot of buzzwords, but I'm going to show you something that no one else teaches because they don't know it.
40 00:06:38,460 --> 00:06:47,430 Okay, but I'm going to show you in recent weeks, since I've been back on social media, everyone's noticing a tone or difference in my presentation, it's a lot
41 00:06:47,430 --> 00:06:56,820 more concise, a lot more accurate, a lot more specific in nature. And that's because I spent the last 14 months with people on a day by day basis, and I've
42 00:06:56,820 --> 00:07:07,500 been able to share with them. They're really openly about what I've learned over the last 24 plus years. And it's not retail, retail things get you into this
43 00:07:07,500 --> 00:07:16,710 business. I'm going to show you how to leave that stuff behind you and think institutionally, that's like my tagline. I want everyone that follows me to
44 00:07:16,710 --> 00:07:24,690 leave that retail mindset because it's not going to help you. In fact, it's actually going to be a hindrance or snare, you're going to find yourself not
45 00:07:24,690 --> 00:07:31,980 finding consistency at all. And if you ask yourself right now, are you consistent. If you're following retail stuff, you're probably not using the
46 00:07:31,980 --> 00:07:41,010 things I'm going to teach you in this three volumes, you will quickly find consistency. Now, I did not say profitability, I cannot promise that some of you
47 00:07:41,040 --> 00:07:47,250 are going to break the rules, when are you going to do things early, so you're going to do things late, you're going to risk too much. Okay, and you're going
48 00:07:47,250 --> 00:07:54,690 to do too many things at one time. That's what's going to cause the adverse effect. And I don't want to credit for your wins. And I don't want to credit for
49 00:07:54,690 --> 00:08:06,990 your losses, be responsible. It's only for informational purposes only. Alright, so when we look at high probability scalping, and this is an hourly chart on the
50 00:08:06,990 --> 00:08:17,130 dollar CAD. And what I've done is I've highlighted the individual daily highs and lows. Now, it's important that from a scalping standpoint, your timeframe
51 00:08:17,130 --> 00:08:23,460 you're gonna be following moon mostly is going to be on the daily, because it's going to give you a bias, and I'll show you how to do that. It's really simple.
52 00:08:24,330 --> 00:08:35,100 But for looking for liquidity, you're gonna be using the hourly chart, because it gives us a real nice framework to see where previous day's highs or the
53 00:08:35,100 --> 00:08:43,800 previous high two days ago, okay, for instance, right now, at the time of this recording, right over here, is this Thursday's data in the far right of the
54 00:08:43,800 --> 00:08:53,130 chart, okay, in yesterday's Wednesday's data, you can see the low it's been highlighted here, and the high and then Tuesday's, high and low. Okay, so I want
55 00:08:53,130 --> 00:09:02,760 to draw your attention to the fact that we have traded below Wednesday's low today. And we've also now traded below Tuesday's low. So that to me, is a
56 00:09:02,760 --> 00:09:09,240 significant point. And I'll talk more about that in Volume Two. But I want to kind of like bring your attention to it right now because it's going to be
57 00:09:09,240 --> 00:09:17,670 salient to what we see going into tomorrow's trading. Okay. And you'll see all that, in hindsight, but I'm drawing your attention to it right now. But each
58 00:09:17,670 --> 00:09:26,760 day, daily highs and lows. Okay, when it's bullish when the market is bullish, and I'll show you how to define what's bullish and what's bearish. not requiring
59 00:09:26,760 --> 00:09:35,850 any indicators, no trend lines and moving averages and oscillators none of that stuff. Okay, just using purely price action only. It's all that's necessary. But
60 00:09:35,850 --> 00:09:44,340 when we're bullish on price action, we think higher prices are in order. Let's say we come to that conclusion right away, if we're bullish, and institutional
61 00:09:44,340 --> 00:09:52,620 mindset is running liquidity on the previous day or previous days prior to yesterday's high,
62 00:09:53,039 --> 00:10:05,129 okay. And the reason why is there's a lot of speculation about catching catching highs in the more Good place. Okay. And especially if we have a day that saw a
63 00:10:05,129 --> 00:10:16,079 retracement the day before or two days ago, lower, that means there's going to be built in positions that are short. Okay, folks that have tried to sell short
64 00:10:16,079 --> 00:10:24,299 on the marketplace. They're going to want to know how to capitalize on movement lower. Where's your buy stock going to be? above the most recent high? What's
65 00:10:24,299 --> 00:10:34,169 the most recent high yesterday or the day before? Now, why am I having you look back two days ago and include today's range, because every swing high on a daily
66 00:10:34,169 --> 00:10:43,559 chart, and every swing low, is comprised and created by three individual bars, you have to be monitoring these daily highs and lows, because you want to be
67 00:10:43,559 --> 00:10:50,699 able to forecast eventually, as I teach you involving three swing highs and swing lows before they actually materialize and start breaking down because
68 00:10:50,699 --> 00:10:57,689 sometimes the markets will turn on a dime. And they don't give you the setup that I'm going to outline in this volume one. But this is the bread and butter
69 00:10:57,689 --> 00:11:06,329 easy way approach is not going to give you a setup every single trading day. And that's exactly what I want you to avoid trying to trade every single day. Now,
70 00:11:06,359 --> 00:11:14,429 there's a reason to trade a demo account every day to practice the setups. But do not try to force your Live account into a condition where it must trade every
71 00:11:14,429 --> 00:11:24,839 single day. Day Trading is not everyday trading. So I want you to take a look at when price has moved higher every previous day. It's high, it's been violated.
72 00:11:25,319 --> 00:11:38,519 Okay. Generally, folks won't pay attention to that simple phenomenon. It's a very simple approach. But it eluded me the first six years of my trading. I
73 00:11:38,519 --> 00:11:50,309 didn't see this element to trading until about six years into my bond trading. Now I started as a treasury bond trader, and s&p futures trader, those were my
74 00:11:50,309 --> 00:12:00,299 two markets of choice, either I was in spoos, which is s&p or I was trading the Treasury market or bonds. I was rarely ever in both because they are basically
75 00:12:00,449 --> 00:12:09,299 diametrically opposed. Think of it like the dollar index and a foreign currency. Okay. I didn't do anything else. I didn't trade agriculture's anymore, I just
76 00:12:09,299 --> 00:12:20,189 focused on those two pairs, or dojo not to not pairs, but I focused on those two markets. Why? Because I didn't need anything else. If you are watching multiple
77 00:12:20,189 --> 00:12:29,489 pairs right now, stop, just do it for one month, humor me for one month, I promise you, if you give me one month of your time and focusing on one currency
78 00:12:29,489 --> 00:12:38,159 pair, and it doesn't have to be one that I suggest pick one, any one of the majors has crossed with $1, I promise you, you will learn you'll learn more by
79 00:12:38,159 --> 00:12:45,959 doing that then trying to do all these other things with other different pairs. If you're trading multiple assets, and you're now starting to learn forex, stop
80 00:12:45,959 --> 00:12:53,819 trading other asset classes and just focus one month with me use the information I gave you. And again, I guarantee you, you will understand price far better
81 00:12:53,819 --> 00:13:03,749 than you ever had before. And it's gonna be very simple approaches. So you got me want to guarantee there. So now if we're bullish, what we want to be thinking
82 00:13:03,749 --> 00:13:13,289 about is where price is going to be drawn to, okay, that's called the draw. Now, when we look for where the markets going to reach for in terms of bullishness,
83 00:13:13,319 --> 00:13:23,549 it's the previous day's high or an old high, that's going to be in the form of buy side liquidity or buy stops. So the market will draw up to that level, okay,
84 00:13:23,579 --> 00:13:31,529 and dip into that liquidity pool, where there's existing buy stops. For instance, if you were selling short, your buys that would be above the current
85 00:13:31,529 --> 00:13:41,639 market price, at what level whatever the previous high was. That's what the books tell you, right. So if your stock gets hit, what that becomes is a market
86 00:13:41,639 --> 00:13:54,149 order to send a buy order right away in as a market order. So your buy stop transforms into a market order to buy at the market, and the market is going to
87 00:13:54,149 --> 00:13:59,159 be driven up there. From an algorithmic standpoint. I'm not going to get into that here.
88 00:13:59,549 --> 00:14:08,069 And I'm not trying to convince you of it, just just suspend your disbelief, if you don't believe it's algorithmic in terms of how the markets move. Think of it
89 00:14:08,399 --> 00:14:19,079 as just you know, supply and demand if it helps you right now. Okay. But when price goes above an old high, it's going there to force buyers to come in at a
90 00:14:19,079 --> 00:14:27,389 higher price instead of buying low. Okay, they're forcing buyers to buy at a higher price. So smart money has at some point accumulated a position at a lower
91 00:14:27,389 --> 00:14:37,409 price. And they're driving price up to formulate an opportunity or condition for participants that have existing orders or real interest at buying at a higher
92 00:14:37,409 --> 00:14:48,209 level to be forced into or out of positions. Okay. And that's all it's all basically framed on. Now, I'm framing this whole discussion tonight on the basis
93 00:14:48,239 --> 00:15:00,389 of looking for by side liquidity or by stocks or running out by side liquidity pools. Okay. So when we're bullish from an institutional stance, point, what
94 00:15:00,389 --> 00:15:09,839 we're looking for is the draw. The draw is above where market pricing is now, in the form of old highs. Now we're using for scalping, we're using previous day's
95 00:15:09,839 --> 00:15:21,989 high for a very simple little day trading approach to capture 10 to 30 pips inside of one trading day. Now, every pair out there does this several times a
96 00:15:21,989 --> 00:15:31,019 week, not every day does one singular pair create this condition. So it's important to have that in your notes, do not anticipate this forming every
97 00:15:31,019 --> 00:15:39,749 single trading day in say, for instance, the Euro dollar, okay? If you don't see a setup in the euro dollar, then once you understand the setup, okay, then you
98 00:15:39,749 --> 00:15:49,469 can go into other pairs, like pick four majors, okay, maybe a cross. And that's like your little basket of currencies. And you go through that, I'm not inviting
99 00:15:49,469 --> 00:15:59,039 you to go through 28 pairs, okay, don't do that. But you can find a setup that I'm going to teach you tonight, every single trading day to practice on if you
100 00:15:59,069 --> 00:16:07,379 have learned what's going to be presented to you in the first, well, the first, second and third volume completed. Once you understand that and you've practiced
101 00:16:07,379 --> 00:16:17,189 for at least a month, then you have my permission to go into including four majors and across and then start looking like that. And you'll see that there's
102 00:16:17,189 --> 00:16:26,609 a setup every single trading day. But it's not my invitation or my goal to inspire you to try to trade every single day, don't do that. My hope is that you
103 00:16:26,609 --> 00:16:33,899 learn to find one or two trades like this per week, and then force yourself to be disciplined to not trade anymore. Because every time you trade, you're
104 00:16:33,899 --> 00:16:40,529 opening the invitation to lose money. And the closer you get to Friday's close with a losing position, it's just gonna make your misery make you miserable over
105 00:16:40,529 --> 00:16:47,009 the weekend. And it's nothing worse than having made money in the beginning a week or sometime during the weekend and going one more time and lose it going
106 00:16:47,009 --> 00:16:55,289 into the weekend. It's frustrating. I've done it many, many times over the last two decades. You don't want to do that it's avoidable once you make money in
107 00:16:55,289 --> 00:17:03,089 your demo account. Okay. I'm not promising you live funds like Kickers, I'm not licensed to do that. But I'm teaching you how to practice in a demo account.
108 00:17:03,269 --> 00:17:12,419 That's all I'm doing here. If you use this information on a Live account, it's on you win or lose 100% of the responsibility is on you. Okay, so in this hourly
109 00:17:12,419 --> 00:17:22,889 chart, we are looking at two timeframes the daily, which gives us a bias that's all indicate. And the hourly, which sets up where the markets going to most
110 00:17:22,889 --> 00:17:31,259 likely reach for for the draw. Okay, that's where the liquidity pool is. So for bullish again, we're looking for an old high to run to that's it. Very simple
111 00:17:31,259 --> 00:17:39,359 strategy, nothing more than that. Okay, so now we're looking at a daily chart. And I want you to look at the patterns I have here, because it's going to be
112 00:17:39,359 --> 00:17:47,219 very important understand what these are, because it's going to give us the context to define when the market should be bullish. And when it should be
113 00:17:47,219 --> 00:17:56,609 bearish. Over here in the left hand corner, this is a swing low. And this is a crude depiction, I didn't add any color because I just want you to think about
114 00:17:56,609 --> 00:18:05,039 the overall pattern itself. Now, any one of these three candles can be up or down close in nature. And other words, it can be a bullish candle or bearish
115 00:18:05,039 --> 00:18:17,249 candle, all three of these It does not matter. Okay? All we're looking for is the generic formation of these three candles. Okay, one having the lowest, low
116 00:18:17,489 --> 00:18:26,099 and a higher low to the left and a higher load to the right, it's only three candles, the three bars needed to find this pattern. Okay? If you look at Mt
117 00:18:26,099 --> 00:18:35,339 four, there's a little indicator you can click on. It's called a fractal. And I really wish they would have never named that. And it's a Bill Williams thing.
118 00:18:35,339 --> 00:18:43,709 I'm not a fan of Bill Williams material. And I'm not trying to be disrespectful. But what I'm teaching you is what I learned from my mentor, Larry Williams, I
119 00:18:43,709 --> 00:18:52,349 think he's proven himself, he's made millions of dollars. And it's documented, you know, he's took 10,000 to over $1 million in 12 months. And we can see that
120 00:18:52,349 --> 00:18:57,449 on a Robbins trading contest website, you can see he's no one's even come close to his
121 00:18:57,570 --> 00:19:07,950 his record. But his approach to teaching market structure starts with this simple concept of a swing high and swing low. So when we see a swing low, it's
122 00:19:07,950 --> 00:19:18,690 three bars or three candles. Okay? Once that forms, what we, in the old days would call that would be a ring low. Okay, because we didn't have charts, we had
123 00:19:18,690 --> 00:19:27,570 to really just write that down on a notebook and the lowest of the three candles or the lowest in recent week or the month, we would we would put a circle around
124 00:19:27,570 --> 00:19:36,840 that that number, okay, on our little binder. And that's the way it was, it was it was like that in the old days. So we would know that that was an important
125 00:19:36,840 --> 00:19:45,090 Well, why because it had a higher load to the right of it in the higher load to the left of it. Okay. So when we see this formation on the daily chart, okay,
126 00:19:45,090 --> 00:19:57,690 what we're looking for is this to occur after this is important. You need to anticipate this forming after a swing high has been broken. Now probably just
127 00:19:57,690 --> 00:20:08,520 took a huge leap forward and I'm probably lost To use, I mean, say it again, we are only really interested in looking for daily swing lows after a swing high,
128 00:20:08,520 --> 00:20:18,090 which is a high that has two lower highs on either side of it, okay. In other words, we've got one daily candle or bar with yesterday or the previous day's
129 00:20:18,510 --> 00:20:28,110 high being lower than today's and tomorrow's day shouldn't have a lower high. Okay, so notes, this is what we're seeing a three bar pattern, you wait for this
130 00:20:28,110 --> 00:20:39,690 to occur in the price action. And if price trades through the swing high, you're now on bullish alert, you wait for the swing low the form, what you have done is
131 00:20:39,690 --> 00:20:48,450 you've waited for institutions to get back in line with the momentum on a short term basis. And the algorithm once it creates that swing low, again, after the
132 00:20:48,450 --> 00:20:57,060 swing highs been broken, momentum is now bullish, and you're waiting for this short term pattern here. When that happens, your focus is going to go
133 00:20:57,060 --> 00:21:07,740 immediately to the high of this number three candle. And I mean, no, I mean, I mean number of these candles so that way we can track it and know what we're
134 00:21:07,740 --> 00:21:17,460 looking at. So this is where directional bias. These candles now have numbers on them. And it's always moving left to right. Number one, candle number two candle
135 00:21:17,460 --> 00:21:29,400 number three candle. What we're dealing is we're watching once the daily swing low forms, we want to see the high be traded through one day number four. Okay,
136 00:21:29,430 --> 00:21:42,240 once day number four does that, we know that they number five, we can be looking for a run on previous day's high liquidity, you can be aggressive. Once this
137 00:21:42,270 --> 00:21:53,100 formation occurs if we open below number three's high, say on door in London or New York if we're below that low, and we have a condition that presents an
138 00:21:53,100 --> 00:22:02,670 optimal trade entry, you can go long and look for a run on number three is high for run on liquidity above number three's buy stops. That's a little aggressive.
139 00:22:02,670 --> 00:22:11,730 And I'll give you rules to do that in volume number three. But tonight, I want to keep it very simple and very, very elementary. So as a recap, what we want to
140 00:22:11,730 --> 00:22:23,040 do is we want to see a swing high, this formation form. And we see that here. Okay, we see a swing high as a lower high to the left of it a lower high to the
141 00:22:23,040 --> 00:22:33,270 right of it. And we want to see it trade through the high. It does it here, right here on this large wick candle. When that happens, we start looking for
142 00:22:33,270 --> 00:22:42,990 this formation on daily chart. It happens right here. Okay, we have a long wick candle has a higher low to the left of it higher low to the right of it. In the
143 00:22:42,990 --> 00:22:54,120 very next day, we want to be looking for runs on previous day's highs for a resistance of previous day's high, it's going to give them in the retail world,
144 00:22:54,480 --> 00:23:06,510 the false sense of security that the previous day's highs going to stop price and it's not going to. So we can see how markets that have this condition have a
145 00:23:06,510 --> 00:23:15,840 tendency to continuously move higher each day. Look at how the previous day's high is violated to some degree. Okay, and then when we get these inside days,
146 00:23:15,840 --> 00:23:23,700 and I'll talk about that in Volume Two inside these are going to be important, but not so important for the for the first volume, I just want to understand the
147 00:23:23,730 --> 00:23:34,140 basic premise or how we get to directional bias and why the swing highs and swing lows are important. So each previous day's high is taken to some degree,
148 00:23:34,410 --> 00:23:43,530 every day has a varying amount of pips and again, I'm not trying to promote the idea of knowing exactly how many pips you know, next week's gonna have or three
149 00:23:43,530 --> 00:23:51,840 days from now, it's not important there there'll be tools and things that you learn in volume three to help you get to that. But for now, just be content with
150 00:23:51,840 --> 00:23:56,280 learning the general rules of how to determine whether the market is bullish or bearish.
151 00:23:57,150 --> 00:24:08,970 If you do this, okay, this is not mentorship level bias, but it is a real quick down and dirty approach. And this is actually how I learned it the first time in
152 00:24:08,970 --> 00:24:16,980 terms of finding basically daily momentum it's all it is and it doesn't require you to have any kind of momentum indicator to do it. No moving average and all
153 00:24:16,980 --> 00:24:25,800 that stuff. Okay, you can read it just from price. So again, simple rules are we want to see a swing high broken to the upside, okay and we see it here, but this
154 00:24:25,800 --> 00:24:36,450 swing high. So now we have momentum on the bullishness pulls back, wait for a swing low to form. That's this pattern here. And then we start watching number
155 00:24:36,450 --> 00:24:47,670 three is high. Okay, we want to see number three is high be violated. In this case here. We see it violate right there with this kind of like a indecisive
156 00:24:47,670 --> 00:24:58,020 candle. And then the very next day, we see what it opens a trades down and then blasts off through the previous day's high. Now when you have that type of move,
157 00:24:58,380 --> 00:25:05,640 it can happen the following day. It does, it opens, okay, and trades above the high a little bit that in itself is a scalp. There's nothing wrong with that
158 00:25:05,640 --> 00:25:16,230 little bit of a move. But I want you to focus on finding one good setup. So if we have a move like this, chances are I would probably look at another pair only
159 00:25:16,230 --> 00:25:24,930 because I understand the conditions and I noticed set up. So it may have burned itself out on one pair, especially if it's a big move. If it's just a marginal
160 00:25:24,960 --> 00:25:33,420 move, then it'll probably seek follow through on the next day, maybe the next day after that. So we have it again here, where it opens, okay, trades down a
161 00:25:33,420 --> 00:25:41,610 little bit and goes higher, running out the previous day's high again, and again, that's a trade that's all is it's a scalp, we are not trying to get the
162 00:25:41,730 --> 00:25:48,900 weekly low with this, we're not trying to get the daily low and holding to the close, all we're doing is looking for an opportunity to run out a previous day's
163 00:25:48,900 --> 00:25:58,860 high or high from two days ago. That's the context. That's the premise behind the system. That's the method. Okay. Why does this work? And I'm sure you're
164 00:25:58,860 --> 00:26:10,830 probably asking yourself, why is this? Why does this have any validity to it? When bank level traders are working, they are trying to turn over liquidity.
165 00:26:11,130 --> 00:26:22,320 Okay. And what I just taught you is the draw, okay to draw is previous highs and previous lows, referencing daily highs and lows, banks target those liquidity
166 00:26:22,320 --> 00:26:33,270 pools more than anything else. In forex. Don't take my word for it, go through your charts. And you'll see that's exactly what goes on when you have things
167 00:26:33,300 --> 00:26:44,490 that are bearish. Okay, we're gonna flip the script for a minute, we want to see price trade below a swing low. Once that occurs, then we start waiting for a
168 00:26:44,490 --> 00:26:53,910 swing high to form. Why are we doing that, because we're waiting for a retracement is going to go to an overbought condition. We all need indicators to
169 00:26:53,910 --> 00:27:03,510 do that. Or derive that information. When we have this short term high here, or swing high form, we start watching the daily candle number three, and we want to
170 00:27:03,510 --> 00:27:12,000 see trade through that low. If it does, we know that we are in bear territory, and we're probably going to see each previous day's low be violated. And that's
171 00:27:12,000 --> 00:27:24,330 the setup that's conditioned. And that's it seen here. Okay, we see a swing low broken here. And then we wait for a swing high to form that's here, we have a
172 00:27:24,330 --> 00:27:32,190 high with a lower high to the left of it a lower high to the right of it, we wait for this number three candles low to be taken out. It does it here. So now
173 00:27:32,190 --> 00:27:42,870 what we do is we target a run on this candles low, it opens trades up creates the high day and slams them. Okay, that's it. That's the setup. It doesn't have
174 00:27:42,870 --> 00:27:50,160 a whole lot of sexiness to it. But I'm telling you right now, it's got a whole lot of consistency to it. And a lot of you probably don't have any consistency
175 00:27:50,160 --> 00:27:59,160 whatsoever, what you're looking for. And this is a very easy bread and butter approach. Now again, I am not trying to package this in a everyday approach for
176 00:27:59,160 --> 00:28:11,970 one individual pair. This works in stocks, it works in futures, it works in bonds, works in just about anything that can trade. So when we have this
177 00:28:12,480 --> 00:28:24,690 momentum on a daily chart, and we know we're either bullish or bearish, it stays that way until we get a break in opposing market momentum. I'll give an example
178 00:28:24,690 --> 00:28:35,070 what that would look like. Here, we have a swing low form and then price comes down and breaks that swing low that upsets the momentum at this point, we have
179 00:28:35,070 --> 00:28:35,820 to see
180 00:28:36,060 --> 00:28:46,050 a short term high be broken. Okay, short term high has to be broken. And then we have a here we have a high with a lower high and a lower high to the right of
181 00:28:46,050 --> 00:28:57,210 it. It's broken to the upside here. So when we have that now we go back in the cycle of looking for a swing low. The swing low forms here. We have a candle to
182 00:28:57,210 --> 00:29:05,970 the left of it that's higher low, the low in the middle and the next candle is up. So we want to see price trade through number three candles high. It does in
183 00:29:05,970 --> 00:29:14,790 fact do it here and we trade through the next day running the previous day's high and it continues that cycle again. Okay, so all we're doing is monitoring a
184 00:29:14,790 --> 00:29:27,030 break in the swing highs and swing lows, giving us a bias on a daily chart. Why am I looking for it on a daily chart because momentum that begins on the daily
185 00:29:27,030 --> 00:29:38,850 chart tends to occur and be lasting for at least a few days. It can be two to five days in duration. So if we have momentum working one side higher or lower,
186 00:29:39,150 --> 00:29:47,790 it tends to stay in that direction for a period of a few days. And that's all you need to have a really good scenario for short term trading intraday scalps.
187 00:29:50,970 --> 00:30:02,640 So again, in summary, when we're looking for the swing low, this is only being stocked or looked for in price action. Until we see a short term swing high
188 00:30:02,640 --> 00:30:11,370 being broken. When that happens, then we start looking for this pattern. Okay? for daily swing highs, this only is being hunted or stocked in price action
189 00:30:11,400 --> 00:30:20,550 after a swing low has been broken. That gives us a break in market structure, but it's basically giving us a definition of an after afterwards, it's gonna be
190 00:30:20,550 --> 00:30:28,350 a retracement. And when we see that retracement occur with a swing high, we know that we can start looking for cells running out previous day's lows. When we see
191 00:30:28,350 --> 00:30:38,010 the swing high broken, and we find a swing low form later on, we know we can look for candle number three's highs to be rated and look for the by staffs to
192 00:30:38,010 --> 00:30:46,200 be ran out for intraday scalp. That's very, very simple approach is very easy. And if you're not understanding it, just watch this video again, I promise you,
193 00:30:46,200 --> 00:30:55,680 you're probably over complicating it, it's not necessary. So I'm going to focus our attention on this little segment of price action here in the shaded area.
194 00:30:56,040 --> 00:31:04,170 And we're actually going to walk through on an hourly chart and look at the framework of each one of these respective days and how it targets liquidity runs
195 00:31:04,200 --> 00:31:14,580 on previous day's highs. Okay, folks, we're looking at the hourly chart at the beginning of that shaded area to show it on a daily chart for us CAD. And I want
196 00:31:14,580 --> 00:31:27,720 you to just see these lines down here. Okay, these are just delineating the ICT kill zone. And the red area is delineating specifically aiming at around two
197 00:31:27,720 --> 00:31:36,810 o'clock in the morning to four o'clock in the morning. New York time everything I say in terms of time, you're going to have to translate that into your local
198 00:31:36,810 --> 00:31:47,610 time relative to New York time. Okay, so if I say, two o'clock in the morning, New York time, wherever you're at globally, this get your self o'clock set to
199 00:31:47,610 --> 00:31:55,410 New York time. And then look at that time in reference to your local time, and you'll be able to decipher what it is you have to do and make the adjustments. I
200 00:31:55,410 --> 00:32:03,510 do not want to get into conversation about time because it's very confusing for me, admittedly, I've done this many times in the past and erroneously said
201 00:32:03,510 --> 00:32:13,620 something and confused a reader or viewer. So it's better for you to just do the work in transferring and converting your local time into New York time. Okay, so
202 00:32:13,620 --> 00:32:22,830 in London is basically two o'clock to four o'clock in the morning. That's the sweet spot or the best time to anticipate a higher load form. And the New York
203 00:32:23,190 --> 00:32:31,560 is going to be seven o'clock in the morning to 10 o'clock in the morning, we'll just give you a nice little window like that. It can be defined as defined in my
204 00:32:31,560 --> 00:32:41,850 tutorials, but for now, just for the sake of this method does use those times. Alright, so we have our beginning of our shaded area when we're looking for
205 00:32:41,880 --> 00:32:55,290 bullishness as defined in the first part of this presentation, and I want you to look at how price moves running out previous day's highs. Okay, and here's the
206 00:32:55,290 --> 00:33:06,270 previous day's high right here. And I'm going to try to do this as quick as I possibly can. And keep things moving along. But the,
207 00:33:08,130 --> 00:33:18,000 the high on this particular day here, you can see on the start of this candle here, it starts immediately runs through a little bit doesn't go by much. But
208 00:33:18,000 --> 00:33:26,580 then it eventually trades through it here. That in itself, this little move here, that's actually a trade. It doesn't seem like much it doesn't feel like
209 00:33:26,580 --> 00:33:32,850 much. But that's a trade. And you're probably because your eyes looking at it the benefit of hindsight, you're going to look at this high in this move down
210 00:33:32,850 --> 00:33:39,810 and say well, that's what I really want to capture. If you're going to think like that, about everything I'm going to show you in this tutorials. I'm not
211 00:33:39,810 --> 00:33:47,970 gonna be any help to you. Okay, because what you're gonna be doing is trying to have perfection and I can't promise and I don't promise perfection at all I do
212 00:33:47,970 --> 00:33:57,840 provide you resources, that's going to help you get better at your price action analysis. And that's the only thing I promise. Okay. So we have a low here and
213 00:33:57,840 --> 00:34:07,170 on daily high and the expectation is we want to see the high be ran out. We want to see the the expectation of moving through this high. Why? Because there's
214 00:34:07,170 --> 00:34:15,930 going to be liquidity above the high why I'm not going into here, just trust me. The banks make runs on previous day's highs and lows and if it's bullish,
215 00:34:15,960 --> 00:34:27,600 they're going to be targeting previous day's highs. Okay, so the way we frame our setups is we use our fed Okay, and we find the lowest bodied portion of the
216 00:34:27,600 --> 00:34:39,030 candle that's going to be this open here and we drag that up to here Okay, why he just jumped off the level I wanted to have it on sorry.
217 00:34:44,249 --> 00:34:51,179 I want to own this candle right here because it's going to be the highest body before this little retracement. Okay. And at this point we're going to be
218 00:34:51,179 --> 00:34:59,819 anticipating because it only this briefly violated the previous day's high. We want to see a retracement our mind is waiting for it to trade lower. Okay. Once
219 00:34:59,819 --> 00:35:06,029 it takes Lower, we're gonna be looking forward to go down into the optimal trade entry. Okay, that's our price pattern, it doesn't do it until afterwards little
220 00:35:06,029 --> 00:35:12,839 movement up. Now on a smaller time frame, we could probably see something in here that's an optimal trade entry but I'm gonna say that for volume too, but in
221 00:35:12,839 --> 00:35:21,929 here I'm giving you the big setups for your scalp setup. Okay, so using the hourly chart, you're gonna see it here and we're gonna be targeting previous
222 00:35:21,929 --> 00:35:31,859 day's high now, on this day when it trades down to the here, we could be targeting or run back to previous day's high. And now what have we included? We
223 00:35:31,859 --> 00:35:41,909 have a higher high here in the same day so intraday, we have a higher high and we have previous day's high. Both of these conditions are candidates for run on
224 00:35:41,909 --> 00:35:54,209 liquidity. Okay, so we have this one and we have this one. So as price trades down here, we want anticipate a movement higher to run to this level, which it
225 00:35:54,209 --> 00:36:04,199 does here and eventually back to this hot here, which it doesn't do until this candle here. Notice that price trades down in the bodies of the candles respect
226 00:36:04,529 --> 00:36:17,009 to 79% tradesmen level Okay, price rallies back up to this high This is why I say you want to take profit, okay. At old highs and your first scaling here.
227 00:36:17,759 --> 00:36:27,119 This is target one you can take profit there and notice it never takes the high out yet has to retrace all the way back down to precisely the seventh. Again,
228 00:36:27,479 --> 00:36:40,139 then rallies through taking out intraday high, previous day's high. And again two days ago. Okay. This is your run on previous day's high liquidity. Now this
229 00:36:40,139 --> 00:36:54,779 candle on a daily basis. It's high is here. same scenario in here. It rallies up takes out that high, which again, we're going to have to see that on a lower
230 00:36:54,779 --> 00:37:06,809 timeframe. We're not going to do it in this volume. But as it runs through we want to see a retracement. Okay, we have the bodies of this run here. Why am I
231 00:37:06,809 --> 00:37:19,529 using this one? Because it's the most dynamic and recent rally. And we want to use it on the highest body open or close. Which is here. Price trades down into
232 00:37:19,709 --> 00:37:29,579 the 62% retracement level right in here. Where are we targeting previous day's high, which is here. And also now we have an intraday high here. So we have two
233 00:37:29,579 --> 00:37:39,899 reference points to look for. to anticipate the banks making a run on both of those levels. Initially, it's this one, okay. So on the next day, it trades back
234 00:37:39,899 --> 00:37:51,539 down again, giving you another opportunity to go long. If you were trading here, you're outside of a kill zone. Okay, I want you to notice that every time that
235 00:37:51,539 --> 00:38:01,079 we create signal and set up, if it overlaps with one of these colored levels, okay, or lines, that makes it high probability. If it's outside of one of those
236 00:38:01,319 --> 00:38:12,869 shaded time windows, it's less favorable, it doesn't mean it can't eventually move to profitability. In your demo, it just means that it's far more likely to
237 00:38:12,869 --> 00:38:25,649 occur if it's occurring during one of the shaded time windows. Okay. So, again, the blue one here is the New York kill zone and the red one is London. So we
238 00:38:25,649 --> 00:38:35,129 have a set up here, it trades back down into optimal trade entry here. And it does so at the time of New York. Okay, so New York and London both have an
239 00:38:35,129 --> 00:38:43,799 opportunity to create a buying opportunity. London will give it to you that you probably got stopped out. same scenario unfolds for New York, New York explodes
240 00:38:44,339 --> 00:38:54,149 runs through previous day's highs of two days before and previous day's high here runs right through it. That's the trade It's over. It's done. There's
241 00:38:54,149 --> 00:39:03,089 nothing else to consider. There's nothing else to worry about. The trade is over. Okay, so now in here, we've had a couple of examples, nice little payouts,
242 00:39:03,119 --> 00:39:13,319 not barn burners, not Grand Slams, but bread and butter setups. Nice using one pair in the course of sight inside of a week. We have nice little setups. And
243 00:39:13,319 --> 00:39:21,929 it's given us a really good opportunity to target a logical level which is a previous day's high. And under the context of a retracement to a logical level
244 00:39:21,929 --> 00:39:35,219 which is the Fed using a framework of bodies, bodies in terms of the swing highs and swing lows. And also as a quick note, have this in your notepad easy way to
245 00:39:35,219 --> 00:39:40,349 go for what swing high and what swing low I draw my fib from I use session highs and session lows.
246 00:39:40,499 --> 00:39:49,859 So whatever the highest high and low was during London, and or New York, I use those reference points and then I just use the bodies either the open or close,
247 00:39:49,979 --> 00:39:58,589 whichever is the lowest for the low point of the fib and the high point is whatever the highest is the open or the close inside of the high. Okay. And
248 00:39:58,619 --> 00:40:07,079 that's all there is to it. each new day you're waiting for an opportunity for it to retrace back down into what would be otherwise standard optimal trade entry
249 00:40:07,079 --> 00:40:17,939 which is a 62% and 79% tracer level but targeting previous day's highs. Now notice once we hit this previous day's high here, the mark goes into some of our
250 00:40:18,149 --> 00:40:29,279 our consolidation. Now we do get a little bit of a run here, but not to the degree where we can really brag about our go to great lengths to justify it. We
251 00:40:29,279 --> 00:40:38,759 do have a nice retracement here. Okay, and I want you to take a look at that. Because when we have a retracement of a day or so that usually puts the cycle
252 00:40:38,759 --> 00:40:50,039 back in rotation. So we have a retracement here price comes back down to 70.5 level, which is the sweet spot t Okay, and it's happening at the time of New
253 00:40:50,039 --> 00:40:59,279 York. So that's a good scenario. We could see a buy there but look at it rolls over into the next day in London, it hits it again. So your stop would never
254 00:40:59,279 --> 00:41:05,849 have been hit but you're holding on for a long period of time. So this is where it's going to stretch your patience as a scalper which is the reason why I like
255 00:41:05,849 --> 00:41:16,469 being short term because I know these are the conditions is most likely going to happen. Hits 62% 360 2% retracement level rather. And once it hits that in
256 00:41:16,469 --> 00:41:25,799 London then explodes. What's it reaching for the previous day's high, it runs through that with no resistance whatsoever and blows through previous day's high
257 00:41:25,799 --> 00:41:36,809 back here. Okay, so really nice little opportunity there. And whenever you see a full day's down close, that's like a big red neon sign say start following me,
258 00:41:36,839 --> 00:41:44,489 especially if you're in a bullish scenario that markets primed to have an optimal trade entry long and start running out previous day's highs. Okay, on
259 00:41:44,489 --> 00:41:57,869 this one particular day here, price moves 3050, almost 70 pips or so. Okay, really, really quickly. And this is all mostly in inside of one our big
260 00:41:57,869 --> 00:42:09,239 explosive price move here. And that was seen on October 5. And this continues on going through price action. And when we have scenarios that present themselves
261 00:42:09,239 --> 00:42:18,359 with the highest form of probability, and not seeing any breakdown on a daily chart, it gives us framework context and specifics about what we're looking for
262 00:42:18,389 --> 00:42:27,629 when we're looking for Killzone. What price level optimal trade entry, what are we targeting previous day's highs or the day before it? So yesterday's high or
263 00:42:27,839 --> 00:42:35,849 the day before yesterday's high? That's what we're targeting when we're bullish. Very, very simple approach. Nothing more to it than that. I'll amplify it in
264 00:42:35,849 --> 00:42:43,979 Volume Two, and I'll wrap it up with concise, more or less a trading plan in volume three. Hopefully you found this insightful. Until next time, wish you
265 00:42:43,979 --> 00:42:45,269 good luck and good trading.