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OTE Pattern Recognition Series - Vol 01.srt

Last modified by Drunk Monkey on 2021-06-10 09:59
1 00:00:26,430 --> 00:00:40,800 ICT: Well, Hello Folks, longtime new See, if you'd like me the present conditions around the world right now, because of the the illness that's been
2 00:00:40,800 --> 00:00:53,040 plaguing everyone. I thought of everyone on the YouTube channel that has supported this channel and maybe has been longing for some inspiration, maybe
3 00:00:53,040 --> 00:01:13,170 some kind of a nudge, by grow ICT. So I came here with the expectation that I would give the next four weeks, or 20 trading days, just a snapshot real quick,
4 00:01:14,400 --> 00:01:26,130 kind of like train your eye to see the optimal trade entry. And it's many formations and subtle nuances. Now, it's not a signal service. So that way you
5 00:01:26,130 --> 00:01:36,900 guys didn't like to do the thumbs down button, which I love that the the content I'm going to be providing you here is just really to activate your reticular
6 00:01:36,900 --> 00:01:49,440 activating system, it means train your eye to see what it looks like, and how it tends to form. Okay, so for some of you that are very versed in my content in
7 00:01:49,950 --> 00:02:05,190 old stuff in the classic ICT library, the optimal trade entry is a really an old staple. Now, it's not important for me to go through the entire optimal trade
8 00:02:05,190 --> 00:02:15,900 entry, and all the levels and all that stuff, you'll see what they are obviously in the examples. But if you have not watched the optimal trade entry, or ot E,
9 00:02:16,200 --> 00:02:26,730 primer video, you can do a search on YouTube, and you'll see it pops up, watch that video and kind of like gives you a calling a foundation up how to set your
10 00:02:26,730 --> 00:02:39,060 fed my business. So if we are looking at the next 20 days, just know that these videos are not intended to be very long, I want to try to get right to the
11 00:02:39,060 --> 00:02:47,160 point. But this is the first one in this series. So I kind of like one, take a little bit of liberty to remind the individuals that are probably just new to
12 00:02:47,160 --> 00:02:59,880 me, or to hardline critics that just can't stand me. I love you too. The, again, the premise behind all this is again, not to say here's what, here's what the
13 00:02:59,880 --> 00:03:09,870 markets gonna do next. Okay, that's not what I'm doing here. Okay, what I'm showing you is how you go into your charts and annotate them. Look for the
14 00:03:09,870 --> 00:03:19,380 optimal trade entry, because this is how I trained myself to see it. Back in the 1990s. I worked just like every one of you. And I came home. And I had to look
15 00:03:19,380 --> 00:03:31,110 at charts and look at moves that I missed. So I taught myself to look for specific patterns and signatures and price action over a period of years. And
16 00:03:31,140 --> 00:03:42,600 because of that, and seeing it over and over and over again, it builds in a pseudo experience. In other words, I at the time was not able to see these
17 00:03:42,630 --> 00:03:53,880 formations form live. So I would go back and look at my charts and annotate them in capacity, as if I were really there watching it and annotating the chart as
18 00:03:53,880 --> 00:04:04,440 if it was something that watched and witnessed live. Now, I'm not going to annotate the charts to the degree that I personally would do it. But I'm going
19 00:04:04,440 --> 00:04:17,730 to provide you a kind like a baseline to work with. And you can dress up your own charts and annotations and draw a great deal of attention to other things
20 00:04:17,730 --> 00:04:22,710 that may be important to you. Okay, or your unique price action model.
21 00:04:24,870 --> 00:04:35,550 I'm not teaching bias. I'm not teaching how to find the right order blocks, okay, I'm not doing all that. It's just again, to train your eye to see a
22 00:04:35,550 --> 00:04:43,920 specific ground on it takes place in the marketplace. And again, some of you're going to say all this is something that everybody knows about. It's a Fibonacci
23 00:04:43,920 --> 00:04:51,270 retracement. ICT didn't invent it. And it's this and it's that okay, if that's your attitude, that's how you think that's your you're going into this video.
24 00:04:51,570 --> 00:05:00,510 I'm really gonna waste your time. And just know that if you're that person, I enjoy that where everyone else that wants to really learn how to do something I
25 00:05:00,510 --> 00:05:13,110 want you to see what it's like over and over and over again over a period of four weeks. Okay, so if anything is studied for a month, basically, it really
26 00:05:13,110 --> 00:05:27,030 starts to take root in number one, your memory, and your identification, okay?  The faculties that each of us have to see something that is important to us, it
27 00:05:27,030 --> 00:05:38,280 has to be activated. Okay, and real short and sweet. The common example I always use is if you buy a car, and you've looked forward to buying this car, and once
28 00:05:38,280 --> 00:05:46,500 you buy it, you take it home. And the very next day you're driving, it might be the day you come home with it, you start noticing that a lot of other people
29 00:05:46,500 --> 00:05:57,510 seem to have that same car. And it's not that more people bought it because you did. But your reticular activating system has been keyed up, okay to filter that
30 00:05:57,510 --> 00:06:09,000 car, because it's meaningful to you. And so, by me showing you examples of this particular pattern, and the signatures that generally repeat with it, you're
31 00:06:09,000 --> 00:06:19,410 going to see how you can start doing this on your own. And then if you have the ability to watch it live, you'll see many times its formation, and then you'll
32 00:06:19,410 --> 00:06:31,170 grow your confidence to paper, trade it, then demonstrate it. And if you feel inclined to do so, if you shown six months of consistency, you want to dabble
33 00:06:31,170 --> 00:06:39,090 with a very, very small amount of money, live money, nothing big, nothing grandiose, this smallest amount of money you can open up an account with and
34 00:06:39,090 --> 00:06:49,950 then trade the smallest little lot sizes possible. And then again, just follow the same protocols and procedures that would otherwise lead to your trust. in
35 00:06:49,950 --> 00:06:58,020 finding and price action, you determine that on your own, I don't ever selling myself a good tree with live money, because there's a lot of responsibility in
36 00:06:58,020 --> 00:07:06,570 that. And legally, I can't tell you to do that. But I can talk about price action, and I can talk about the signatures that repeat themselves. And I only
37 00:07:06,570 --> 00:07:15,390 want to talk about the optimal trade entry. Okay, so please, don't try to reach out to me and say, Hey, can you talk about this? Can you do that, I'm only going
38 00:07:15,390 --> 00:07:24,780 to be doing just this. Okay. So again, every video, I'm going to try to aim at five minutes or less. But this one just has to be just a little bit long winded
39 00:07:24,780 --> 00:07:33,030 because I have to have a preamble to set the stage for what it is I'm doing so that way no one can say you said it was going to be this and it's not. Okay. So
40 00:07:33,420 --> 00:07:42,810 if you're serious about understanding the things that I'm making available to you on this YouTube channel, one of the hallmarks is the optimal trade entry. So
41 00:07:42,810 --> 00:07:51,960 again, watch the optimal trade entry primer video first, and then come back to this series. Okay, so, again, it'll be 20 videos in the series, and I'll try to
42 00:07:52,230 --> 00:08:01,620 create a playlist that way, you guys can find it very easily. And we got to go through it. But tonight, as the pilot episode, we're looking at the Australian
43 00:08:01,620 --> 00:08:14,640 dollar. Okay, so I'm using tradingview.com as the resource and platform. And the data I'm pulling up is the Australian dollar versus the US dollar forex.com. So
44 00:08:14,640 --> 00:08:25,380 whenever you put this symbol over here, it's going to give you a assortment of different data feeds. And I always use the forex.com. So that way, you guys can
45 00:08:25,380 --> 00:08:36,390 see the the price action the same way as I'm President presenting it here.  Alright, so when we look at the optimal trade entry, and we look at its
46 00:08:36,390 --> 00:08:48,300 formation on a day by day daily basis. Now, again, I'm not trying to push or entice or convince
47 00:08:48,360 --> 00:09:00,630 that you should be day trading every single day. Okay, that's not what this is.  I can, but I've been doing this for almost three decades, so many of you are
48 00:09:00,630 --> 00:09:10,710 very, very new. And there's nothing wrong with that. But you cannot speed this process up. It has to be done methodically has to be done in a way where it just
49 00:09:10,890 --> 00:09:22,920 allows for development, in not rushing can't rush it. Okay, so if you look at this particular currency pair, some of you that are familiar with my concepts
50 00:09:22,950 --> 00:09:33,060 right away know that there is the sensitivity off of this low here, and this low here is inside of these two consecutive down close candles, that's an order
51 00:09:33,060 --> 00:09:43,080 block. So it's going to be important for the discussion just simply because of this video, but every video after this, I'm only going to go right into the day
52 00:09:43,740 --> 00:09:55,290 and reference the previous day's range and show you how the optimal trade entry formed. So if you learn this, okay, if you grow in comfort and identifying this
53 00:09:55,710 --> 00:10:04,770 over a period of time, what period of time minimum four weeks do Study. Now that doesn't mean for which you graduate. Now your optimal trade entry Master, it
54 00:10:04,770 --> 00:10:14,880 just means that you're very familiar with it, and you have a little bit of a sample size of experience. You want to build on that, how long it will take for
55 00:10:14,880 --> 00:10:25,230 you to get, really, I guess, used to seeing the pattern, and anticipating when it's going to form that's going to be different for every single one of you. So
56 00:10:25,230 --> 00:10:33,510 it's not, here's a general rule of thumb. Everybody gets it by this time. No mentor, no teacher, no educator can say everyone's going to get it by this
57 00:10:33,510 --> 00:10:46,500 timeline. So be very flexible with your development, on your personal develop, not comparing yourself to someone else. Okay. So when we look at price action on
58 00:10:46,500 --> 00:10:57,120 a daily chart, the main thing we're looking for is the reactions from the previous day's range. Okay, so this is the day that we're going to study,
59 00:10:57,240 --> 00:11:05,310 because this is a new trading day now. But we're going to be looking at this particular day here. And already here, all the people here it is, it's hindsight
60 00:11:05,310 --> 00:11:14,940 again, okay. For those that are new, put the fact that it's hindsight aside for a moment, because every single thing that you study when you buy a book,
61 00:11:16,230 --> 00:11:27,090 newsflash, that's all hindsight to when you go to a seminar, or a webinar, and they show you previous examples. That's all hindsight to. So you'll learn by
62 00:11:27,090 --> 00:11:37,170 identifying a pattern that repeats, okay, so I'm teaching you a pattern of what it looks like, and how it generally forms. Okay, so if you do this, if you learn
63 00:11:37,170 --> 00:11:46,050 to do this very, very well, this could be your personal trading model. You never need to learn anything else, you never worry about indicators, you never worry
64 00:11:46,050 --> 00:11:52,920 about learning anything else in the ICT library. You don't even worry about mentorships, you don't worry about going over here and signing up with signal
65 00:11:52,920 --> 00:12:05,640 services, because you will be your own power plant of decisions and ideas and trade setups, they'll come organically from your own study, not relying on other
66 00:12:05,640 --> 00:12:15,540 people not relying on me, not people in chat rooms or, or groups, nothing like that. Okay, the big thing now is everyone's going to discord rooms, okay? Or
67 00:12:15,810 --> 00:12:27,330 telegram rooms, all these things and are all looking for someone that's good. So they can copycat off of. And you don't need that, you're absolutely in a
68 00:12:27,330 --> 00:12:36,720 position to learn how to do this for free, right here. And you don't need to have anybody else to convince you, or patch on the back to say, follow me,
69 00:12:36,780 --> 00:12:43,620 because I'm going to do it, and you're going to copy us because that makes you subservient to them. And that's not independent thinking. And to me, personally,
70 00:12:43,620 --> 00:12:52,560 I think it's weakness. And you don't want to be a weak minded decision maker in something like this, because you have the capacity to lose a great deal of money
71 00:12:52,560 --> 00:13:01,920 for trading with live funds, right. So the down close candles in here, that's our order block, we had a candle tree down into it, and then the previous day
72 00:13:01,920 --> 00:13:11,790 now again, kind of like just move this candle out of your focus. Don't think that anything about this candle right now we're only focusing on this candles
73 00:13:11,790 --> 00:13:24,390 range and the previous day, which is the sixth of May. Okay, so in the United States right now, it's 8:41pm, New York local time. And it's still the seventh
74 00:13:24,390 --> 00:13:35,670 for me. But it's a new financial day in the Forex sets overseeing this candle form. So when we look at the previous day's range, it's important to just simply
75 00:13:35,670 --> 00:13:39,060 identify the highs and the lows of it.
76 00:13:41,220 --> 00:13:52,800 Okay, so right away, we know this candles high. And if we looked at these two down close candles, and the fact that we traded down into it here, we had a
77 00:13:52,800 --> 00:14:06,480 candle trade, again, a little bit into your block, the order block is starting at the wick. So this candles high comes in at 6397 a four bit that's the price
78 00:14:06,480 --> 00:14:18,120 action dips into that candle range. And it does it again on the seventh. Okay, so it's not showing a willingness to go deeper. It doesn't want to dig in deeper
79 00:14:18,120 --> 00:14:29,880 and even take out the low over here. So we have to consider at least for this episode for this particular video, the likelihood of the market wanting to go
80 00:14:29,880 --> 00:14:40,650 higher. So what we want to see is does it have the ability on the very next day or the main seventh candle? Does it have the ability to trade above the previous
81 00:14:40,650 --> 00:14:52,110 day's range high? Why is that important? For those that have a serious interest in following along in keeping up with this series, you want to take notes, okay,
82 00:14:52,110 --> 00:15:04,050 so get yourself a pen and pad and just I guess make a study journal Just for optimal trade entry. Okay, so over the next 20 days, I'm going to give you
83 00:15:04,230 --> 00:15:13,260 simple little facets that go along with this pattern. And you'll see that it will flesh out over a period of time. And you'll start seeing things that you
84 00:15:13,260 --> 00:15:23,040 didn't really see before, even if you're familiar with the optimal trade entry.  So we're gonna go down to a lower timeframe, and these levels here are going to
85 00:15:23,040 --> 00:15:34,230 be on the lower timeframe chart. But this study over the next 20 days is going to focus on intraday charts. And specifically a five minute chart. And right
86 00:15:34,230 --> 00:15:42,750 away some of your like, kind of like five minute charts, I can't do that. Trust me, it's beneficial to your learning. Alright, so Alright, so what we have here
87 00:15:42,750 --> 00:15:52,950 is a blank canvas in the form of candlesticks that may or may not mean anything to you. But I want to press upon you the importance of knowing the previous
88 00:15:52,950 --> 00:16:04,200 day's high and low. And it's very simple process, you can go into your charts, and today and put vertical delineations on the seventh, and the sixth. So the
89 00:16:04,200 --> 00:16:17,970 range low on the six is here in the range high is here. So when we know that on a daily chart, okay above previous day's highs and lows. Only say like this,
90 00:16:18,000 --> 00:16:27,600 above previous day's highs and below previous day's lows, there's a bank of orders that generally reside in the marketplace and throughout the day,
91 00:16:28,170 --> 00:16:36,330 depending upon how we get closer to the previous day's high or low on the new trading day in the new trading day. In this example, here is the seventh. So
92 00:16:36,330 --> 00:16:53,100 we're assuming all this price action here is what we're studying. When the market has a predisposed. bias, or trend or momentum, or you just think, okay,
93 00:16:53,100 --> 00:17:00,900 that it's going to go higher, you want to focus on the previous day's high, and then you want to see does it have the ability to stretch and reach up to the
94 00:17:00,900 --> 00:17:11,790 previous day's high? If it does, one of two things generally happens in assuming it's a bullish one, it goes through the previous day's high and dis explodes and
95 00:17:11,790 --> 00:17:17,820 never gives you a chance to trade. And that's just a missed opportunity. And there's nothing you could do about it, there's no reason to get upset about it.
96 00:17:17,850 --> 00:17:26,280 There's no reason to go online and complain to other people how you missed that trade, or you suck, or you're, you're never going to get this, never do that.
97 00:17:26,310 --> 00:17:34,080 Because you're actually giving yourself negative reinforcement. And your subconscious will remember that. And every chain you take after that trade will
98 00:17:34,080 --> 00:17:44,640 be plagued by that negative narrative that you've given yourself that you suck, you're never going to get this. So every time you actually muster up the courage
99 00:17:44,820 --> 00:17:52,230 to get an actually execute. You're going to be scared, you're going to be constantly revved up, you're going to be in a constant state of stress and
100 00:17:52,230 --> 00:18:01,170 anxiety, versus just following the method you've adopted and focusing on what price is doing. Is it still viable in terms of a trade? Or should you collapse
101 00:18:01,170 --> 00:18:10,710 it or maybe take some of the risk off or stick with it because now it's moving in your favor? When we look at previous day's highs and previous day's lows, we
102 00:18:10,710 --> 00:18:21,210 want to see the market go up above it. And then once it trades to the previous day's high if we're bullish, we want to see does it create an optimal trade
103 00:18:21,210 --> 00:18:30,060 entry? Because many times you're going to see this formation form exactly what I'm showing you here Okay, lots and lots of times do you see this formation form
104 00:18:30,600 --> 00:18:37,290 throughout the week and it may not be that particular currency or this currency in this example here Australian versus the Dollar,
105 00:18:37,680 --> 00:18:51,060 it may be in euro it may be in cable, it may be in the beast pound versus yen, it may be the New Zealand dollar, it may be in gold, it may be in a
106 00:18:51,060 --> 00:19:02,610 cryptocurrency, okay? It's not limited to just one currency stick to it and always expect it to happen like that. When you understand this pattern, you can
107 00:19:02,910 --> 00:19:13,410 mark out your previous day's highs and lows. And if there is a very discernible, clear, unambiguous directional bias that lends well to one particular currency
108 00:19:13,410 --> 00:19:20,640 or two over the other basket of currencies that you follow, then that means that you've very easily filtered out all the other currencies. So now you're going to
109 00:19:20,640 --> 00:19:28,830 focus on maybe one or two for that particular day and then wait to see if it trades to end through the previous day's high if it's bullish or below the
110 00:19:28,830 --> 00:19:40,350 previous day's low if you're bearish. Now with these ideas mentioned in general bullet point fashion, as I've just given you, let's flesh this idea out a little
111 00:19:40,350 --> 00:19:48,870 bit and put some lipstick on this pig here. Okay, so we got the vertical delineation here on the sixth and the seventh. So between those two vertical
112 00:19:48,870 --> 00:19:58,890 lines, we have the highest high and the lowest low as denoted on the chart here previous day's high, previous day's low. And here's the daily bullish order
113 00:19:58,890 --> 00:20:08,100 block, as outlined On the daily chart before we move down into lower timeframe.  Alright, so the previous day's high on this particular candle here we have 6445,
114 00:20:08,340 --> 00:20:21,570 and three pipettes. And then the next candle is the very highest high at 6453.  Okay, so that's our high. So think in terms of round numbers and big figures and
115 00:20:21,570 --> 00:20:36,210 mid figures. Okay, so essentially, this high being 53, even if that's the high, what is it really trading around 6450 mid figure. So it's the midpoint between
116 00:20:36,480 --> 00:20:48,330 64 00 and 65 00. So the mid figure levels are very significant, they're important. Couple that with the fact that this high and this high here are
117 00:20:48,360 --> 00:21:01,530 basically relatively the same high above this clear area that would otherwise be viewed as retail resistance. Traders think that this offered resistance here it
118 00:21:01,530 --> 00:21:10,380 offered resistance here. And as it starts to break down anyone going short, they would feel very comfortable putting a stop loss above these highs, because they
119 00:21:10,380 --> 00:21:21,870 feel with visual support behind the theory that this is resistance. So there's going to be a bank of orders that reside above this, because it's the previous
120 00:21:21,870 --> 00:21:31,950 day's high when we're looking at over here, and the fact that we have relative equal highs, so there's going to be a layer of liquidity above these highs and
121 00:21:31,950 --> 00:21:44,280 above the mid figure, okay, so 6450, which is this black line here, and then 10 pips above it, which is 6460 and 10 pips below is 6440. So we have a standard
122 00:21:44,280 --> 00:21:53,460 deviation of 10. pips. Now, I don't want to make it too complicated. But just understand that what I'm showing you here, this is about the general rule of
123 00:21:53,460 --> 00:22:03,480 thumb, you're going to get that seems really technical, just know that whenever we have a previous high, or previous low, how I did this here, I would do the
124 00:22:03,480 --> 00:22:14,940 same thing around this low here, because the low on this candle comes in at 6378. So we have an institutional level of 80. So if you're, again, if you're
125 00:22:14,940 --> 00:22:29,070 new here, 00 level, point 80 or 80, in this case here, 50, mid figure, and point 20 or 20, in instance, for Australian dollar. So you have mid figure levels
126 00:22:29,070 --> 00:22:41,220 that's very sensitive at level 20 and 00 levels. Now, why are these levels important? Why they significant is because a lot of large fund traders make
127 00:22:41,220 --> 00:22:50,340 their orders very easy for processing, and he just put them in there at that level. A lot of commerce gets done at those levels too. So when there's global
128 00:22:50,340 --> 00:22:59,730 commerce that comes into the marketplace, IBM needs to do business in Japan, so they have to turn dollars into yen, when they put orders in for that
129 00:22:59,910 --> 00:23:09,990 transaction. It's just easier for the bank to move that into those levels, and do the commerce there.
130 00:23:10,410 --> 00:23:21,240 So, again, if that's not important, it's nothing that needs to be known or followed or believed in. Okay, to see this work, all we're doing is studying a
131 00:23:21,240 --> 00:23:31,680 signature in price action, that will tend to repeat a lot. And this is one of the formations of optimal trade entry and why it forms here. Okay, so again, the
132 00:23:31,680 --> 00:23:42,540 daily chart, we're assuming the previous day's high should be traded to and if it does, it should be bullish, and look to see higher prices. If it goes below
133 00:23:42,540 --> 00:23:52,950 the previous day's low, that means that we can't be as bullish, but we can now study to see if we have a bearish optimal trade entry because the previous day's
134 00:23:52,950 --> 00:24:00,480 low has been violated. So there's always a study and it's not about hands is very important, write this down and underline it several times and highlight it
135 00:24:00,480 --> 00:24:09,720 and draw all kinds of, you know, annotations around that draw your attention to how important this is. It's not about being right or wrong. This study is to
136 00:24:09,720 --> 00:24:20,760 show you what it looks like every single day and how you're going to go into the chart. So when I show these examples, again, it's just to train your eye to see
137 00:24:20,820 --> 00:24:31,500 the thing I'm showing you over and over and over again. And you're gonna find that this is exactly what it tends to do in other markets as well. It's not just
138 00:24:31,650 --> 00:24:41,220 me form fitting it into this one because it looks pretty okay. So again, the idea is we're looking for the previous day's high on the sixth that be traded to
139 00:24:41,220 --> 00:24:50,850 it does here and then we consolidate and retrace a little bit and we hang around once it hits that 6450 level which that black line here. It does blow out the
140 00:24:50,850 --> 00:24:59,190 previous day's high not by much but it does. And then it gyrates down 10 pips or a little bit more than that and picks up more orders. What is it doing? It's
141 00:24:59,190 --> 00:25:07,170 gathering more orders. here and then there's a displacement here, price starts to create a run up above the previous day's high with a little bit more
142 00:25:07,170 --> 00:25:18,780 meaningful run. So the shallow run here gets overtaken here. And then price does what it returns back to the 6450 mid figure and consolidates between 6460 6450.
143 00:25:18,990 --> 00:25:32,370 And what's it doing? It's allowing all the orders that was above the previous day's high and around 6450. An order bank gets depleted because of the time it's
144 00:25:32,370 --> 00:25:40,770 sitting in here. Now when I say order bank, it's, it's basically a huge collection of orders that may or may not be in the marketplace around here. But
145 00:25:40,770 --> 00:25:49,830 as it sits in here, people will start to build a bias or a sentiment about what they think the Australian dollar is going to do. In terms of bullishness, or
146 00:25:49,830 --> 00:26:02,670 bearishness, these orders that are accumulated in here are going to build up over time. Price makes a run above the 6460 level and starts to just get into
147 00:26:02,670 --> 00:26:14,460 the 6470. But it's not important. We're looking for price to go to a specific time and specific price. So we're looking at time and price. That's what makes
148 00:26:14,520 --> 00:26:23,250 optimal trade entry or the ICT optimal trade entry pattern what it is, it's not just simply going in there and saying, okay, every time that price retraces it,
149 00:26:23,250 --> 00:26:29,460 because otherwise that's just Fibonacci trading, okay, or ratio trading, or harmonic trading? Yeah, I'm
150 00:26:29,459 --> 00:26:38,429 saying it, everyone's got a name for it. Okay. But what I'm showing you what makes this optimal, okay, is the fact that it's occurring at a key time of day.
151 00:26:38,999 --> 00:26:47,969 Now, I'm not kidding, I'm not teaching you ICT kill zones. Okay, I'm going to make it very, very simple. It's specific times a window, a window that begins in
152 00:26:47,969 --> 00:26:57,209 a window to ends, and then we're only focusing during the New York session.  Okay, so it's not the New York kill zone. It's the new york session. So it
153 00:26:57,209 --> 00:27:07,709 allows a great deal of flexibility. And it allows you also to look for this pattern with specific envelopes and time where it begins and ends. If it doesn't
154 00:27:07,709 --> 00:27:17,069 occur, then you can't do anything with it. It may form later on, and you'll be like, Oh, well, I didn't see it, then I didn't take it in. So I'm mad. Don't be
155 00:27:17,069 --> 00:27:30,239 mad. You only want something that makes sense. And a time where you anticipate it occurring. This is discipline, this is focusing on a rule based premise. And
156 00:27:30,269 --> 00:27:40,469 following your price action model. This is the way professional traders do it.  They don't get lacks in their rule rules and and say, Okay, well, it was good.
157 00:27:40,469 --> 00:27:49,529 Last 12 times I did it. But this time, it does feel lucky. And I'm just going to do things slightly different. They don't do that. Okay, generally, if you have a
158 00:27:49,529 --> 00:27:59,519 model or a trading plan, you want to stick to the rules. And that way, you're not going to be confused when things go awry. It's just simply a losing trade.
159 00:27:59,819 --> 00:28:11,279 And you're not going to be able to avoid every instance of that occurring.  Everyone takes losses. I take all says, I have lost money, okay? You're going to
160 00:28:11,279 --> 00:28:20,549 lose money, you can't avoid it, it's absolutely going to happen. If you put live money in here, you're going to lose money. But if you learn how to do this,
161 00:28:20,669 --> 00:28:31,019 you're going to see how often this signature becomes very familiar in price action. And I'll leave that to you what that means on an individual basis. So
162 00:28:31,049 --> 00:28:42,029 price stays around and meanders up and down gyrates until we get to a specific time of the day, and this is going to be 8:30am to 11 o'clock in the morning,
163 00:28:42,299 --> 00:28:55,649 New York time, these are always new york times 830, New York time to 11 o'clock, New York time. Do not email me Why is this time this and not in New York kill
164 00:28:55,649 --> 00:29:05,249 zone times. I'm not teaching mentorship, I'm not teaching ICT kill zones. I'm teaching you a specific price action model with rule based ideas. And you work
165 00:29:05,249 --> 00:29:14,249 with just this. Okay? I'm not reinventing it because my stuff doesn't work anymore. Okay, that's not what I'm doing. I'm making a very specific window of
166 00:29:14,249 --> 00:29:25,439 time. And it's based on New York time. So if you want to see the time window, I have it set you can see right here, this is what I have in my time setting. So
167 00:29:25,439 --> 00:29:36,629 this is what you'd look for. And then your chart will look like mine is here. If you live a different timezone in a different country, then you need to figure
168 00:29:36,629 --> 00:29:48,749 out what that time is for you locally and where you live at. But this is the time that this pattern tends to form. Okay, now, the green shaded area in here
169 00:29:48,779 --> 00:30:00,749 is what everyone's familiar with in terms of my pattern and optimal trade entry.  Optimal trade entry is the 62% retracement level to the 79% retracement level,
170 00:30:01,139 --> 00:30:20,399 and the mid point or 70.5 level you can see here. And these are the levels that are highlighted. Okay. So everything here is what I have on my fit. So these are
171 00:30:20,399 --> 00:30:29,279 the, that's the levels that you would have for your Fibonacci over here, okay, on trading view. So that way it's included, now they don't change, they're not
172 00:30:29,309 --> 00:30:39,479 flipping around and making it fit because I'm gonna have a winner every single day. That's not what I'm doing here. Okay. So again, all of this gyration is
173 00:30:39,479 --> 00:30:40,949 just simply working
174 00:30:41,190 --> 00:30:49,830 the Bank of orders that come and go around that mid figure level and above the previous day's high. Now, remember, earlier, I said one of two things are going
175 00:30:49,830 --> 00:30:55,890 to happen when you're bullish. And if it trades to the previous day's high one, it takes off, and it doesn't give you a chance to do anything and you missed
176 00:30:55,890 --> 00:31:05,640 that opportunity. Or it starts gyrate around the previous day's high. Okay, and you want to know what institutional price level you're working around the
177 00:31:05,640 --> 00:31:16,260 closest to it. Okay, so no worries when I say closest to the previous day's high. In this instance, it's 6450. And then you do an envelope of 10 pips above
178 00:31:16,260 --> 00:31:28,320 that, and 10 pips below it. And then you, you allow basically price to generate a trading range, until we get to this little sweet spot in time between 830 in
179 00:31:28,320 --> 00:31:38,400 the morning, why 830 for your notes, 830 there's usually a lot of news that comes out during the New York session. Okay, so the 30 new session, usually,
180 00:31:38,400 --> 00:31:47,130 it's like non farm payroll will come out some other kind of report. I don't off the top my head know what they are. And I don't really care to know what they
181 00:31:47,130 --> 00:31:57,180 are really, because I don't have any real specific affinity for one particular set of data, because they always coming in now in terms of what's relevant right
182 00:31:57,180 --> 00:32:05,790 now, what's the focus right now. Whereas at the time of this recording, employment numbers, or the lack of employment is the main focus right now,
183 00:32:06,000 --> 00:32:19,050 because everyone's at home, or without a job because of the illness that's been spreading. So when we get to 830, you want to see price, try to trade when
184 00:32:19,050 --> 00:32:33,750 you're bullish trade down into 62 to 79% retracement level on the fib. Now, that is your range determined from the low to the high once this previous day's highs
185 00:32:33,750 --> 00:32:44,340 broken. If this was a bearish scenario, we would just do the opposite of what's been seen here. Once the low of the previous day's low as broken, we would use a
186 00:32:44,340 --> 00:32:53,880 short term high to a short term low that would be below the previous day's low when you're bearish. But in this instance, obviously we're bullish. So we want
187 00:32:53,880 --> 00:33:06,570 to use a short term low to the short term high. So this range is the range prior to the formation of the New York session of 830. In the morning, New York time
188 00:33:06,570 --> 00:33:18,450 to 11 o'clock in the morning, New York time, why 11 o'clock, that's typically around when London clothes occurs. And usually it's also the time when the am
189 00:33:18,450 --> 00:33:30,690 session starts to wane. In the New York session and early lunch takers, you didn't leave the marketplace, that volume is no longer available in the through
190 00:33:30,690 --> 00:33:39,600 noon to one o'clock in the afternoon. That's generally the New York lunch and it can be quiet during those times. You only want to be looking for this pattern up
191 00:33:39,600 --> 00:33:49,800 to 11 o'clock in the morning. After 11 o'clock. It can form but it's something other than what I'm teaching here. And that's not important. The point is, is
192 00:33:49,800 --> 00:33:58,140 you want to see this pattern form during this time of day with the bias determined by what you determine when your daily chart Do you think the previous
193 00:33:58,140 --> 00:34:04,020 day's highs gonna be taken out or the previous day's low sticking out? And here's the thing, the beautiful, beautiful thing really is is many times you
194 00:34:04,020 --> 00:34:13,020 don't even need a bias. You just wait for the chart to show you what it's done.  Does it take out the previous day's high or the previous day's low? At this time
195 00:34:13,020 --> 00:34:26,070 of day? What has it done while the here's Midnight in New York, and during the London session, it created a run higher. So there's been a lot of buying taking
196 00:34:26,070 --> 00:34:34,470 place to get above the previous day's high does it create an optimal trade entry so the low to the high that's what I had the fib drawn on, even though it's
197 00:34:34,560 --> 00:34:47,580 drugged out to here that way, you can see all the levels how they line up nicely with time. So we have two components here we have the element of time. And we
198 00:34:47,580 --> 00:35:03,690 have the element of price. So price is the level determined by the fib relative to its high and low of that range. Time is static This is always static, it does
199 00:35:03,690 --> 00:35:13,710 not change, it does not deviate, it's 830 in the morning, New York time to 11 o'clock, it does not change. So the easy way to do that is simply just get a
200 00:35:14,970 --> 00:35:30,150 horizontal, I'm sorry, vertical line and put it at these specific times. If you do that,
201 00:35:40,710 --> 00:35:53,730 you know, in between these two vertical lines, you don't need to have a guess as to when something's going to form, you know, when when price enters this area
202 00:35:53,730 --> 00:36:02,340 between the first vertical line up to the second vertical line, you're anticipating an optimal trade entry to form. So that's the expectation that
203 00:36:02,340 --> 00:36:13,590 you'll have by having your vertical lines on there. So you don't right now have a whole lot of business on this chart. But you can see clearly that this is what
204 00:36:13,590 --> 00:36:24,870 the time element would be to this pattern. Price is always going to be between 62% initiation level and the 75% tracing level, which is 79 here, and 62 is just
205 00:36:24,930 --> 00:36:38,550 underneath that 50 level. Okay, so 6450 is this black line here. So it cleans it up a little bit. Okay, as you can see 60 to 79 and 70.5, which is the sweet spot
206 00:36:38,550 --> 00:36:51,720 or optimal trade entry. Okay? When price drops down into this level, you can be a buyer on paper or demo. And I'm not going to save you on that, because I'm not
207 00:36:51,720 --> 00:37:00,210 licensed to do that. But we're studying price action. And you could be a buyer here with the expectation that we would see it expand. Now I'll get up to here
208 00:37:00,210 --> 00:37:09,570 and talk about these levels in a minute. But right now, this low is where your stop would have to be below that. Okay, so the lowest candle. What we're
209 00:37:09,600 --> 00:37:23,580 anchoring to fit on the low is 6434 and seven for that. So you can do a stop at 6430. Okay, so there's your stop 6430 darker colors in Houston see. So, your
210 00:37:23,580 --> 00:37:38,190 stop could be at 6430. So your stock could be at 6430. Your entry could be at the 62% retracement level is 6449 and seven bets. So basically we can just
211 00:37:38,190 --> 00:37:49,530 simply say, if retraces 6450 you can be a buyer. Okay, because you're gonna look for the institutional level and the lower you get down into the 700 retracement
212 00:37:49,530 --> 00:37:58,170 level, the less likely you're going to get your fill because we demand 79% retracement level here, you may or may not get that with the spread. Okay, so
213 00:37:58,320 --> 00:38:07,680 what I like to use is 60% trace level and then maybe factor in the spread there.  But if you're using 62 generally it's a little bit more forgiving. Because you
214 00:38:07,680 --> 00:38:17,580 don't need to add always in my in my experience using 60% tracing level, you can absolutely get it because you're going to dip even further generally into the 70
215 00:38:17,580 --> 00:38:27,930 and a half. And sometimes it is sometimes to trade some level but that's our range. Price. And in this is our time window. So the fact that we're looking at
216 00:38:28,980 --> 00:38:39,060 this specific area, if we use a limit order at 62% retracement level, if it trades below that you're filled, your stock would be placed here. And then using
217 00:38:39,060 --> 00:38:56,430 the fib levels. Point 54.5 negative 0.5. Rather, this is an area where you take first profit if it allows you if it allows you 15 pips or more. Okay, so there's
218 00:38:56,430 --> 00:39:08,760 your rules, you want to take 15 pips at first scout exit at the negative 0.5 level, and then the negative one level, which would be one standard deviation of
219 00:39:08,760 --> 00:39:18,600 the range that you calculate for your fib. So know what you're drawing your load to your high here, that range here if it's duplicated, and basically projected
220 00:39:18,630 --> 00:39:31,470 higher, a measured move of that would be this level up here. Now since we have that, since it's suggesting here in the fib, it's 0.6513 and five pipettes we
221 00:39:31,470 --> 00:39:41,670 want the highest degree of probability for our levels for scaling and taking profits. This would be an area where we can take profits again. So first scaling
222 00:39:41,670 --> 00:39:54,360 would be here at negative 0.5. But the minimum expectation is 15 pips, so you have to be able to get 15 pips, you can't get 15 pips here, but you can get it
223 00:39:54,420 --> 00:40:06,270 here or more than this is where you would take first profit. Okay, here is just One level we read expect it. In this instance, here, we can see at 6450 or so
224 00:40:06,600 --> 00:40:17,670 getting out at 6493. That's 43 pips almost 43 pips of potential profit at first scaling.
225 00:40:19,529 --> 00:40:31,109 The next level up here would be 6513, and five, but it may not get to these levels. Again, Fibonacci is not the answer to everything in the marketplace.
226 00:40:31,499 --> 00:40:42,809 Even though this is giving you a general rule, principle and in theory, and it's going to get you very close to some really sweet setups do not demand that the
227 00:40:42,809 --> 00:40:52,859 price reaches to these levels for your targets. What I do, this is how I teach my students as well, if this is the fib level that we're looking for, okay, in
228 00:40:52,859 --> 00:41:08,879 other words, if your calculations suggest that this is what the range level for negative one would be, on the projection 6510 is the nearest 10 level, without
229 00:41:08,879 --> 00:41:18,089 getting up to that level, so what we're doing is we're rounding down to the next 10 level. Okay, so wherever this level would be, say it was 15, it would still
230 00:41:18,089 --> 00:41:30,119 be 6510. For me, so I'd be looking to take profit, or scaling out here. If this level was at 15, or more pips, this would be my first scaling from my entry down
231 00:41:30,119 --> 00:41:48,059 here at 6450. So 6458, was my limit on entry for general principles, and the stop would be 6430. So it's a 20 PIP stop. And, again, forget risk reward, we're
232 00:41:48,059 --> 00:41:55,349 not teaching that don't think it has to be three to one, it has to be five to one, you know, if it's one to one, it's still good. In my opinion, it's good.
233 00:41:55,349 --> 00:42:01,709 Because if you have a setup that repeats over and over and over again, very frequently, I understand and accept the fact I'm not going to be a winner on
234 00:42:01,709 --> 00:42:12,119 every single trade, I'm going to take losses. But if I have a system that doesn't require me to spend a lot of money when I'm losing, but I do have a high
235 00:42:12,119 --> 00:42:21,809 frequency of accuracy. And if you look at this, you'll determine if this does or doesn't have a lot of accuracy. But nonetheless, by looking at and studying it.
236 00:42:22,589 --> 00:42:32,429 With this logic behind it, it's not the fib that's creating it. The logic is we've traded above the previous day's high in a relatively bullish scenario. So
237 00:42:32,849 --> 00:42:42,329 we're lending well on this example for bias, but it doesn't require bias. If you blow out the previous day's high or below the previous day's low, you still look
238 00:42:42,329 --> 00:42:49,979 for these general theories to pan out. And again, it's not about right or wrong, you're not supposed to be taking live trades with this, I'm not enticing you to
239 00:42:49,979 --> 00:42:59,429 take trades. With this. I'm teaching you how to read the tape, how to read the price action, and forecast setups that will repeat if you know what you're
240 00:42:59,429 --> 00:43:11,669 looking for. So first profit here we could take obviously at 93 and eight bit that's that's 40 plus pips, so that definitely will meet the minimum criteria of
241 00:43:11,669 --> 00:43:22,169 15 pips before for scaling. And then you can get another scaling out at 6510, which is rounded down to from the fib level here, it can hit this fib level, or
242 00:43:22,169 --> 00:43:32,339 can go through it a little bit more. And that's fine. This is where you would take your next level of profit taking. If you can get first scaling, where it's
243 00:43:32,339 --> 00:43:41,309 15 pips or more, you want to start reducing your your risk on your stop till about midpoint of the range that you identified here. Because if it comes back
244 00:43:41,309 --> 00:43:49,529 down into that, it's generally not a good idea to hold on to the trade and let let it stop you out. You've taken something out partial, and then you reduce
245 00:43:49,529 --> 00:43:57,509 your risk. And then if it comes back down stops, yeah, you've taken something off the bone, you got a bite of flesh. And if it comes back down, you didn't get
246 00:43:57,509 --> 00:44:06,779 stopped out with a loss. That's in theory, what we're saying here, and if it gets second scaling, if you ever get a second scaling, you have to be above your
247 00:44:06,779 --> 00:44:16,919 entry point, at least two or three pips and just let it go. Okay, so that way you've gotten to pieces of meat off the bone. And now you're in a position where
248 00:44:16,919 --> 00:44:24,659 your stop should in theory protect you from taking a loss on the remaining balance. It does not mean you can't take a loss because you can as long as the
249 00:44:24,659 --> 00:44:36,149 trades open, you are inviting risk and the market can always get down or above your stop loss in that's this life. Okay, and a lot of people don't realize that
250 00:44:36,359 --> 00:44:45,149 they're listening to people online. Oh, my stops gonna do my job. Nope, not always exist. That's the best case scenario. And sometimes the best case
251 00:44:45,149 --> 00:44:52,619 scenario doesn't work out. So we can see how price eventually makes a run up into 6510.
252 00:44:54,990 --> 00:45:06,240 Right there gives us a nice little opportunity to scale off 10 pips. 6510 which is three and a half pips below where the fib projected to. But that does not
253 00:45:06,240 --> 00:45:14,580 mean collapse the trade. Okay, it doesn't mean get out of the trade leave a little bit on. So the again, the assumption is when you're paper trading this or
254 00:45:14,580 --> 00:45:23,490 if you're demonstrating it, you want to use a lot size that allows you to have multiple, in my case, I like to look for leverage that allows me to take three
255 00:45:23,490 --> 00:45:34,980 partials and in, give me something to let run, that means I can get four stages of scaling out of that position. Not all positions will allow me to do that. And
256 00:45:34,980 --> 00:45:44,250 here's the thing, if it doesn't let me do that, I don't take that trade. So I've given you something bonus in here, where it helps me determine with a decision
257 00:45:44,250 --> 00:45:55,590 based approach process and, and protocols that leads to me getting into a trade, there's lots of times I see moves coming. And I can see them for me, I can see
258 00:45:55,590 --> 00:46:03,180 exactly when they're going to turn exactly where they're likely to go. But I'm not in them, because they don't meet all the criteria that I demand of my
259 00:46:03,180 --> 00:46:13,110 setups. So there's nothing wrong with being very, very dependent on your rules, and only executing in that it's actually a good thing. It builds discipline, it
260 00:46:13,110 --> 00:46:23,940 builds maturity as a trader, and you will not be shaken by a lot of the things that a trader that doesn't have rule based ideas that sticks to them very rigid,
261 00:46:24,720 --> 00:46:35,340 will, they will generally be encountering a lot more stress, anxiety, because they're always guessing as to what they should be doing. versus this is what I'm
262 00:46:35,340 --> 00:46:42,090 doing. This is the time of day I'm doing and I'm looking forward to go long, I'm looking forward to go short. If it doesn't fit the criteria, you don't do
263 00:46:42,150 --> 00:46:54,600 anything. And you let it go. And you'll see over weeks of time doing that.  You'll, in theory, protect yourself from taking from taking on more risk than
264 00:46:54,600 --> 00:47:05,130 you're supposed to, or should, and you're gonna be working towards a perception of price action that is going to be appreciated by you. And your bottom line in
265 00:47:05,130 --> 00:47:13,260 your results will show that, but again, you're going to take losses, you're going to get it wrong. This is not a magic recipe for always winning trading,
266 00:47:13,380 --> 00:47:24,780 okay, it's just something to start with. It's rule based, and you stick with it come hell or high water. You do this for weeks, and you see if it pans out and
267 00:47:24,780 --> 00:47:37,110 shows any kind of merit. And I promise you, if you do this, you're going to see it. So the market comes up to that 6510 level has a reaction retraces back down
268 00:47:37,110 --> 00:47:46,350 into some old order flow. And we want to keep something in and we want to keep a liter in water, see if we can catch a runner. And the Fed will hopefully give us
269 00:47:46,350 --> 00:48:02,430 another level of importance and the scrunch it down. Okay, we have 6552 and nine pipettes. Okay, so that's the next level, which would be this range, two times.
270 00:48:02,430 --> 00:48:11,160 That's one of it here. And then the second one here. So this is two standard deviations. This level in here. Generally, if for day trading, if you ever get
271 00:48:11,160 --> 00:48:21,120 an explosive move, I want to be out at this point here and I'm content with if it runs more, I don't care. I'm not a long term position trader. And it could
272 00:48:21,120 --> 00:48:29,910 continue for six months. And everybody can say, Yeah, but you missed this it ICT index, I'm not interested, I could care less. I want consistency. I want
273 00:48:29,910 --> 00:48:39,960 continuity. And I want the ability to be able to see these things repeat over and over and over again. trades, okay? For a neophyte are mysterious. They sneak
274 00:48:39,960 --> 00:48:47,520 up on them, they surprise them. They're like, well, we just happen. You ever noticed that when you get online, and you see people on Twitter, Instagram,
275 00:48:48,840 --> 00:48:58,530 whatever, okay. Any of these chat room things, these these trade rooms, they're all like surprised, whoa, what happened with the sewing so and now they're only
276 00:48:58,530 --> 00:49:10,590 interested in that pair or that Mark has moved. You are not going to be surprised. You're going to be anticipating, okay, you're gonna be anticipating.
277 00:49:10,830 --> 00:49:19,650 And by anticipating things occurring around a specific time of day around a rule based idea and a pattern that you're familiar with, and seeing over and over
278 00:49:19,650 --> 00:49:28,860 again. Now let's go back to that analogy about buying a car that you have a lot of affinity for. It's a sports car or it's a luxury car. You like this car, you
279 00:49:28,860 --> 00:49:38,430 can't imagine being anything else but the driver of that car and you buy it you bring it home. Remember, generally when you look around very soon after taking
280 00:49:38,430 --> 00:49:42,450 it home, you will start seeing that car more because you have
281 00:49:43,740 --> 00:49:55,950 activated your filter in your your attention to alette to let these cars get your attention. Okay, and that's what you're doing. You're teaching yourself to
282 00:49:55,950 --> 00:50:06,690 see this pattern over and over and over again in price action and By default, what happens is, when you start seeing it form live with everything on your
283 00:50:06,690 --> 00:50:13,470 chart annotating the time of day, what you're anticipating in terms of the direction it's supposed to expand up or down relative to the market being
284 00:50:13,470 --> 00:50:23,820 bullish or bearish relative to it running the previous day's high or low. You will see the pattern form live. And you'll know what it looks like. And you'll
285 00:50:23,820 --> 00:50:34,800 trust what you have practice in hindsight, weeks and months of it. And now you when you watch price action live, it'll be like, I see it, it's right there. And
286 00:50:34,800 --> 00:50:47,640 you won't be surprised, you won't be taken back like wow, where did that this come from? Price is algorithmic. It repeats every single day on elements of time
287 00:50:47,940 --> 00:50:59,610 and price. It does not work on magic Fibonacci, the Fibonacci is just a way for me to frame the context, the use this pattern, okay, I didn't reinvent
288 00:50:59,670 --> 00:51:10,230 Fibonacci, I'm not trying to claim claim the three quarter pullback of the Fibonacci is mine, the logic of using the fib with time and the element of
289 00:51:10,230 --> 00:51:18,900 market structure that's me, that's my that's why it's called optimal trade entry. ot is just an abbreviation of those three words. What makes it optimal is
290 00:51:18,900 --> 00:51:28,680 it's occurring at a time of day when the market will likely spool in spread out in one particular direction over the other. So it's more inclined to go higher
291 00:51:28,710 --> 00:51:37,590 or lower relative to the things that I'm showing you here. Alright, so anyway, so we have two opportunities here for scaling one, two, and this is the target
292 00:51:37,590 --> 00:51:48,690 where you would want to get out at the market trading right now. It's just about midpoint of that in here. Now you can use this midpoint, which I don't have a
293 00:51:48,690 --> 00:52:01,830 fib, if you want to add a fib for that level, it would be negative 1.0. And that would give you a line right here, I just don't care to have it. In this point
294 00:52:02,340 --> 00:52:14,880 where the market is running, you want to have your stop loss below some point of support or structure that would Yes, make your stop be part of a pool of sell
295 00:52:14,880 --> 00:52:24,240 side liquidity or where the Bank of sell stops would be. But you have already in theory, taking one or two portions of profit out. And your stock would just be
296 00:52:24,390 --> 00:52:33,810 above breakeven. So you want to look at where you are in terms of the current market structure. We had a run here, it retraced and then rallied up multiple
297 00:52:33,810 --> 00:52:44,520 terms lower, so we retrace multiple times. I like the idea of moving stop below here. Not below here. Okay, not below here. Why? Because this one, we already
298 00:52:44,520 --> 00:52:53,610 had a run below these lows here. And then we broke to new highs. We had a retracement to this low and retracement to this low, which is basically the
299 00:52:53,610 --> 00:53:03,390 relative equal lows. So it could still get below here, it could break down, hit that and still go higher, longer term. And I would miss out on that move, just
300 00:53:03,390 --> 00:53:14,880 trying to choke the trade with a really, really tight stop loss, which is not advisable. So we have this low that's much more appropriate for trailing stop
301 00:53:14,880 --> 00:53:26,040 loss and not jamming it up too tight and not giving the market room to breathe, especially because we're tracing this on a five minute chart. So the idea again,
302 00:53:26,040 --> 00:53:34,680 is we're looking for day trades. And not hold this thing for four weeks, not even for multiple days. But this is how you would manage your trade. So if all
303 00:53:34,680 --> 00:53:46,770 this occurred inside of the same trading day or same few hours, say it move say all this movement here occurred in a little bit less time. The same thing I'm
304 00:53:46,770 --> 00:53:54,900 showing you here in terms of when you would move your stop would be the same thing. This is we have a reaction and we have two higher reactions. You don't
305 00:53:54,900 --> 00:54:04,500 want to put your stop loss at the nearest area where stops would be everybody else has their stop loss below this low or here. Mine would be down here. And I
306 00:54:04,500 --> 00:54:14,880 already banked two positions or two scalings. Okay, so if it gets to 6550 and nine pit bets, you would collapse the entire trade and be done and be content
307 00:54:14,880 --> 00:54:26,850 with that. So you would be seeing basically getting around 100 pips movement from this particular trade with three partials or the final collapse here. Now
308 00:54:26,880 --> 00:54:33,150 if this level was higher up, okay, so in other words if you weren't getting this range here,
309 00:54:34,590 --> 00:54:44,490 and it allowed for 100 pips, but 100 pips occurs before the two standard deviations of the initial range to create your fib. So this is your range. This
310 00:54:44,490 --> 00:54:54,450 is one standard deviation over here. And then the other standard deviation would be here. And if this level is above 100, pips, okay, you know what's if this
311 00:54:54,660 --> 00:55:09,480 range here was like 6562, nine, okay, that would be 110 pips from your entry, you would take a partial at 100 pips flat, simply just take 100 pips bank
312 00:55:09,480 --> 00:55:16,710 something there as well. So there's your rules, it's very simple. those rules I've given you if you missed it and he weren't really taking notes, go back and
313 00:55:16,710 --> 00:55:27,060 watch the video again and listen very carefully, because I gave you very specific criteria about when to move a stop what entry price, you would look for
314 00:55:27,120 --> 00:55:37,650 where your stop loss would be, and where you take partials. And when you graduate that stop, and what you avoid doing when moving the stock not trying to
315 00:55:37,650 --> 00:55:46,710 choke the trade out by having a stop loss, you know, right under here, or right under here, or because this looks like it's support, you know, there you go put
316 00:55:46,710 --> 00:55:55,860 your stop loss there. There's a lot of people, it's in this period now they have sell stops right below here. They may have been lucky they went long here, maybe
317 00:55:55,860 --> 00:56:04,380 they went in here, or they bought here and is routed out because they don't use a stop loss. But now they want to put a stop loss in their thinking here. Okay,
318 00:56:04,380 --> 00:56:14,430 so I use market structure to help me manage a trade and market structure you can learn that it's on my YouTube channel as well. But this low here, I want to put
319 00:56:14,430 --> 00:56:27,150 my stop at this low and not something ultra super tight because just normal gyrations okay or quick, sudden retracement lower and still be viable for the
320 00:56:27,150 --> 00:56:35,730 trade going higher, would knock you out prematurely and you would miss the opportunity of allowing yourself taking out 100 pips or where the second
321 00:56:35,730 --> 00:56:44,220 standard deviation would be for your ultimate target. Alright. So hopefully you guys got something from this, I'll try to give you something every single day it
322 00:56:44,220 --> 00:56:53,970 will not be this in depth. Okay, so the rules have been applied and shared with you in this video. And I'll always refer back to this video, when there's any
323 00:56:53,970 --> 00:57:04,770 discussion about when stops removed, how you take partials, and what the general principle of this pattern is, okay? It'll be a five minute or less many times,
324 00:57:04,770 --> 00:57:13,020 it'll probably be less than four minutes because this is going to be me saying, okay, here's your chart. These are the levels and then here's what it looks
325 00:57:13,020 --> 00:57:21,900 like. It'll be just all the annotation on the chart. And it'll be me saying, take care, God bless and good luck in the trading. And with that, I'm gonna
326 00:57:21,900 --> 00:57:25,200 close this one and do that very thing. wish good luck and good trading.