OTE Pattern Recognition Series - Vol 01.srt
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ICT: Hello, folks, long time to see
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if you'd like me, the present conditions around the world
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right now because of the illness that's been plaguing
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everyone. I thought of everyone on the YouTube channel that
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has supported this channel and maybe has been longing for
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some inspiration, maybe some kind of a nudge by goodwill
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ICT. So I came here with the expectation that I would give
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the next four weeks, or 20 trading days, just a snapshot
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real quick, kind of like train your eye to see the optimal
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trade entry, and its many formations and subtle nuances. Now
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it's not a signal service. So that way you guys didn't like
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to do the thumbs down button which I love that
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the
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the content I'm going to be providing you here is just
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really to activate your reticular activating system. That
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means train your eye to see what it looks like and how it
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tends to form. Okay, so for some of you that are very versed
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in my content and old stuff in the classic ICT library, the
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optimal trade entry is a really an old staple now It's not
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important for me to go through the entire optimal trade
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entry, and all the levels and all that stuff, you'll see
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what they are obviously in the examples. But if you have not
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watched the optimal trade entry or OTP primer video, you can
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do a search on YouTube and you'll see it pops up, watch that
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video and kind of gives you a calling a foundation up, how
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to set your foot on a business. So if we are looking at the
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next 20 days, just know that these videos are not intended
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to be very, very long. I want to try to get right to the
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point but this is the first one in a series kind of like one
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take a little bit of liberty to remind the individuals that
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are probably just new to me, or the hardline critics that
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just can't stand me.
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I love you to the again, the
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premise behind all this is again, not to say here's what
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here's what tomorrow gonna do next. Okay, that's not what
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I'm doing here. Okay? What I'm showing you is how you go
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into your charts and annotate them. Look for the optimal
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trade entry, because this is how I trained myself to see it.
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Back in the 1990s. I worked just like every one of you. And
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I came home. And I had to look at charts and look at moves
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that I missed. So I taught myself to look for specific
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patterns and signatures and price action over a period of
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years. And because of that, and seeing it over and over and
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over again, it builds in a pseudo experience. In other
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words, I at the time was not able to see these formations
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form live. So I would go back and look at my charts and
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annotate them and capacity, as if I were really there
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watching it and annotating the chart as if it was something
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that watched and witnessed life. Now, I'm not going to ask
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annotate the charts to degree that I personally would do it.
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But I'm going to provide you a kind of a baseline to work
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with. And you can dress up your own charts and annotations
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and draw a great deal of attention to other things that may
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be important to you. Okay, or your unique price action
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model. I'm not teaching bias. I'm not teaching how to find
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the right order blocks, okay, I'm not doing all that. It's
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just again, to train your eye to see a specific phenomenon.
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It takes place in the marketplace. And again, some of you're
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gonna say, Oh, this is something that everybody knows about.
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It's a Fibonacci retracement. ICT didn't invent it. And it's
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this and it's that, okay, if that's your attitude, that's
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how you think of it. So you're going into this video, I'm
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really gonna waste your time. And just know that if you're
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that person, I enjoy that. For everyone else that wants to
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really learn how to do something. I want you to see what
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it's like over and over and over again over a period of four
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weeks. Okay? So, if anything is studied for a month,
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basically, it really starts to take root in number one, your
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memory and your identification, okay? The faculties that
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each of us have to see something that is important to us. It
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has to be activated. Okay, and real short and sweet. The
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common example I always use is if you buy a car, and you've
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looked forward to buying this car, once you buy it, you take
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it home, and the very next day you're driving it, it might
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be the day you come home with it, you start noticing that a
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lot of other people seem to have that same car. And it's not
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that more people bought it because you did. But your
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reticular activating system has been keyed up, okay to
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filter that car because it's meaningful to you. Let's So, by
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me showing you examples of this particular pattern, and the
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signatures that generally repeat with it, you're going to
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see how you can start doing this on your own. And then if
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you have the ability to watch it live, you'll see many times
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its formation, and then you'll grow in your confidence to
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paper, trade it, then demo trade it and if you feel inclined
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to do so, if you shown six months of consistency, you want
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to dabble with a very, very small amount of money, live
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money, nothing big, nothing grandiose. This smallest amount
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of money you can open up an account with and then trade the
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smallest little lot sizes possible. And then again, just
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follow the same protocols and procedures that would
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otherwise lead to your trust. in finding in price action,
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you determine on your own I don't ever tell him I say okay,
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go trade with live money, because there's a lot of
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responsibility in that. And legally, I can't tell you to do
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But I can talk about price action, and I can talk about the
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signatures that repeat themselves. And I only want to talk
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about the optimal trade entry. Okay? So please don't try to
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reach out to me and say, Hey, can you talk about this? Can
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you do that? I'm only going to be doing just this. Okay? So
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again, every video, I'm going to try to aim at five minutes
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or less, but this one just has to be it's a little bit long
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winded because I have to have a preamble to set the stage
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for what it is I'm doing so that way, no one can say you
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said it was going to be this and it's not. Okay. So, if
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you're serious about understanding the things that I'm
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making available to you on this YouTube channel, one of the
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hallmarks is the optimal trade entry. So again, watch the
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optimal trade entry primer video first,
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and then come back to this series. Okay, so, again, it'll be
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20 videos in the series, and I'll try to create a playlist
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that way you guys can find it very easily, and we'll go
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through it but tonight as the pilot episode We're looking at
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the Australian dollar. Okay, so I'm using trading view.com
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as the resource in platform. And the data I'm pulling up is
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the Australian dollar versus the US dollar forex.com. So
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whenever you put this symbol over here, it's going to give
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you a sort of different data feeds. And I always use the
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Forex calm so that way you guys can see the the price action
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the same way as I'm President presenting it here. Alright,
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so when we look at the optimal trade entry, and we look at
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its formation on a day by day daily basis. Now, again, I'm
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not trying to push or entice or convince that you should be
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day trading every single day. Okay, that's not what this is.
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I can, but I've been doing this for almost three decades. So
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many of you are very, very new. And there's nothing wrong
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with that. But you cannot speed this process up. It has to
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be done methodically has to be done in a way where it just
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allows for development and not rush, you can't rush it.
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Okay, so if you look at this particular currency pair, some
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of you that are familiar with my concepts right away know
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that there is the sensitivity off of this low here, and this
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low here is inside of these two consecutive down close
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candles, that's your order block. So it's going to be
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important for the discussion just simply because of this
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video, but every video after this, I'm only going to go
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right into the day and reference the previous day's range
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and show you how the optimal trade entry form. So if you
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learn this, okay if you grow in comfort and identifying this
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over a period of time, what period of time minimum four
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weeks daily Study. Now that doesn't mean for which you
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graduate. Now your optimal trade entry Master, it just means
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that you're very familiar with it. And you have a little bit
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of a sample size of experience. You want to build on that,
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how long it will take for you to get, really, I guess, used
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to seeing the pattern and anticipating when it's going to
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form that's going to be different for every single one of
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you. So it's not here's a general rule of thumb. Everybody
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gets it by this time. No mentor, no teacher, no educator can
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say everyone's going to get it by this timeline. So be very
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flexible with your development, on your personal
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development, not comparing yourself to someone else. Okay,
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so when we look at price action on a daily chart, the main
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thing we're looking for is the reactions from the previous
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day's range. Okay, so this is the day that we're going to
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study because this is a new trading day now, but we're going
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be looking at this particular day here. And already here,
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all the people here it is it's hindsight again, okay? For
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those that are new, put the fact that it's hindsight aside
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for a moment because every single thing that you study when
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you buy a book,
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newsflash, that's all hindsight to when you go to a seminar
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or a webinar, and they show you previous examples, that's
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all hindsight to. So you'll learn by identifying a pattern
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that repeats. Okay, so I'm teaching you a pattern of what it
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looks like, and how it generally forms. Okay, so if you do
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this, if you learn to do this very, very well, this could be
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your personal trading model. You never need to learn
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anything else. You never worry about indicators. You never
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worry about learning anything else in the ICT library. You
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don't even worry about mentorships you don't worry about
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going over here and signing up with signal services, because
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you will be your own power plant of decisions and ideas and
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Trade setups, they'll come organically from your own study
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not relying on other people not relying on me. Not people in
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chat rooms or, or groups, nothing like that. Okay? The big
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thing now is everyone's going to discord rooms, okay? Or
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telegram rooms, all these things and they're all looking for
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someone that's good, too They can copy cat off of. And you
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don't need that. You're absolutely in a position to learn
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how to do this for free, right here and you don't need to
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have anybody else to convince you or patch on the back to
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say, follow me because I'm going to do it and you're going
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to copy us because that makes you subservient to them. And
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that's not independent thinking. And to me personally, I
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think it's weakness. And you don't want to be a weak minded
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decision maker in something like this because you have the
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capacity to lose a great deal of money for trading with live
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funds, right so the down close candles in here that's our
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order block. We had a candle tree down into And then the
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previous day now again, kind of like just move this candle
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out of here. Focus don't think that anything about this
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candle right now we're only focusing on this candles range
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and the previous day, which is the sixth of May. Okay, so in
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the United States right now it's 8:41pm, New York local
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time. And it's still the seventh for me. But it's a new
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financial day in the Forex so that's why we're seeing this
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candle form. So when we look at the previous day's range,
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it's important to simply identify the highs and the lows of
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it. Okay, so right away, we know this candles high and if we
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looked at these two down close candles, the fact that we
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traded down into it here we had a candle trade again, a
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little bit into your block, the order block is starting at
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the wick. Okay, so this candle Hy comes in at 6397 a four
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bit that's the price action dips into that candle range. And
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it does it again on the seventh. Okay, so it's not showing a
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willingness to go deeper, it doesn't want to dig in deeper
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and even take out the low over here. So we have to consider
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at least for this episode for this particular video, the
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likelihood of the market wanting to go higher. So what we
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want to see is does it have the ability on the very next day
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or the May 7 candle doesn't have the ability to trade above
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the previous day's range high? Why is that important? For
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those that have a serious interest in following along in
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keeping up with a series, you want to take notes, okay, so
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get yourself a pen and pad and just I guess make a study
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journal For optimal trade entry, okay, so over the next 20
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days, I'm going to give you simple little facets that go
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along with this pattern. And you'll see that it will flesh
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out over a period of time, and you'll start seeing things
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that you didn't really see before, even if you're familiar
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with the optimal trade entry. So we're gonna go down to a
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lower timeframe, and these levels here are going to be on
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the lower timeframe chart, but this study over the next 20
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days is going to focus on intraday charts. And specifically
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a five minute chart. And right away somebody you're like, I
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don't like five minute charts. I can't do that. Trust me,
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it's beneficial to your learning. Alright, so all right, so
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what we have here is a blank canvas in the form of
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candlesticks that may or may not mean anything to you, but I
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want to press upon you the importance of knowing the
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previous day's high and low and it's very simple process.
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You can go into your charts and today and put vertical lines
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On the seventh and the sixth, so the range low on the six is
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here in the range high is here. So when we know that on the
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daily chart, okay above previous day's highs and lows
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only say like this above previous day's highs and below
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previous day's lows. There's a bank of orders that generally
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00:16:25,050 --> 00:16:28,530
reside in the marketplace and throughout the day, depending
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upon how we get closer to the previous day's high or low on
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the new trading day and the new trading day. In this
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example, here is the seventh. So we're assuming all this
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price action here is what we're studying. When the market
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has a predisposed. bias, or trend or momentum or you just
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00:16:52,170 --> 00:16:56,040
think, okay that it's going to go higher. You want to focus
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on the previous day's high and then you want to see does it
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have the ability to stretch and reach up To the previous
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day's high, if it does, one of two things generally happens.
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And assuming it's a bullish one, it goes through the
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00:17:09,690 --> 00:17:12,450
previous day's high and just explodes and never gives you a
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chance to trade. And that's just a missed opportunity. And
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there's nothing you could do about it. There's no reason to
253
00:17:17,130 --> 00:17:19,290
get upset about it. There's no reason to go online and
254
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complain to other people how you missed that trade, or you
255
00:17:22,140 --> 00:17:25,950
suck, or you're, you're never going to get this. Never do
256
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that, because you're actually giving yourself negative
257
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reinforcement. And your subconscious will remember that in
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every trade you take after that trade will be plagued by
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that negative narrative that you've given yourself that you
260
00:17:39,720 --> 00:17:42,540
suck, you're never going to get this. So every time you
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actually muster up the courage to get an actually execute.
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You're going to be scared, you're going to be constantly
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revved up, you're going to be in a constant state of stress
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and anxiety, versus just following the method that you've
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00:17:55,320 --> 00:17:58,410
adopted and focusing on what price is doing is it's still
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viable in terms of a trade Should you collapse it or maybe
267
00:18:01,560 --> 00:18:04,020
take some of the risk off or stick with it because now it's
268
00:18:04,020 --> 00:18:08,790
moving in your favor. When we look at previous day's highs
269
00:18:08,970 --> 00:18:13,590
and previous day's lows, we want to see the market go up
270
00:18:13,590 --> 00:18:17,340
above it. And then once it trades to the previous day's high
271
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if we're bullish, we want to see does it create an optimal
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00:18:20,970 --> 00:18:24,660
trade entry? Because many times you're going to see this
273
00:18:24,660 --> 00:18:27,840
formation form exactly like I'm showing you here. Okay, lots
274
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and lots of times do you see this formation form throughout
275
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the week and it may not be that particular currency or this
276
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currency in this example here Australian versus the Dollar,
277
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it may be in euro it may be in cable, it may be in the beast
278
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pound versus yen, it may be the New Zealand dollar, it may
279
00:18:47,040 --> 00:18:53,910
be in gold. It may be in a crypto currency, okay. It's not
280
00:18:53,910 --> 00:18:58,530
limited to just one currency stick to it and always expect
281
00:18:58,530 --> 00:19:01,710
it to happen like that. When You understand this pattern,
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00:19:01,920 --> 00:19:05,250
you can mark out your previous day's highs and lows. And if
283
00:19:05,280 --> 00:19:10,890
there is a very discernible, clear, unambiguous directional
284
00:19:10,890 --> 00:19:14,460
bias that lends well to one particular currency or two over
285
00:19:14,460 --> 00:19:17,040
the other basket of currencies that you follow, then that
286
00:19:17,040 --> 00:19:19,320
means you've very easily filtered out all the other
287
00:19:19,320 --> 00:19:21,930
currencies. So now you're gonna focus on maybe one or two
288
00:19:21,930 --> 00:19:25,260
for that particular day and then wait to see if it trades to
289
00:19:25,290 --> 00:19:28,260
end through the previous day's high if it's bullish, or
290
00:19:28,320 --> 00:19:33,030
below the previous day's low if you're bearish. Now with
291
00:19:33,030 --> 00:19:37,140
these ideas mentioned in general bullet point fashion, as
292
00:19:37,140 --> 00:19:40,620
I've just given you, let's flesh this idea a little bit and
293
00:19:40,620 --> 00:19:44,160
put some lipstick on this pig here. Okay, so we got the
294
00:19:44,190 --> 00:19:47,670
vertical delineation here on the sixth and the seventh. So
295
00:19:47,670 --> 00:19:50,370
between those two vertical lines, we have the highest high
296
00:19:51,210 --> 00:19:54,630
and the lowest low as denoted on the chart here previous
297
00:19:54,630 --> 00:19:58,650
day's high, previous day's low. And here's the daily bullish
298
00:19:58,650 --> 00:20:01,920
order blocked as outlined On the daily chart before we move
299
00:20:01,920 --> 00:20:03,990
down to a lower timeframe. Alright, so the previous day's
300
00:20:03,990 --> 00:20:08,760
high on this particular candle here we have 6445 and three
301
00:20:08,760 --> 00:20:13,320
pipettes. And the next candle is the very highest high at
302
00:20:13,320 --> 00:20:19,830
6453. Okay, so there's our high. So think in terms of round
303
00:20:19,830 --> 00:20:22,620
numbers and big figures and mid figures. Okay, so
304
00:20:22,620 --> 00:20:27,690
essentially, this high, meaning 53, even if that's the high,
305
00:20:27,720 --> 00:20:35,100
what is it really trading around 6450 mid figure. So it's
306
00:20:35,100 --> 00:20:40,890
the midpoint between 64 00 and 65 00. So the mid figure
307
00:20:40,890 --> 00:20:44,940
levels are very significant or important. Couple that with
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00:20:44,940 --> 00:20:48,930
the fact that this high and this high here are basically
309
00:20:48,930 --> 00:20:50,820
relatively the same high
310
00:20:52,410 --> 00:20:53,610
above this
311
00:20:54,569 --> 00:20:57,179
clear area that would otherwise be viewed as retail
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00:20:57,179 --> 00:21:01,439
resistance. Traders think that the offered resistance here
313
00:21:01,439 --> 00:21:03,689
it offered resistance here and as it starts to break down
314
00:21:03,689 --> 00:21:07,769
anyone going short, they would feel very comfortable putting
315
00:21:07,769 --> 00:21:12,149
a stop loss above these highs because they feel with visual
316
00:21:12,149 --> 00:21:16,469
support behind the theory that this is resistance. So
317
00:21:16,739 --> 00:21:20,249
there's going to be a bank of orders that reside above this
318
00:21:20,699 --> 00:21:24,809
because it's the previous day's high when we're looking at
319
00:21:24,809 --> 00:21:27,629
over here and the fact that we have relative equal highs, so
320
00:21:27,629 --> 00:21:31,769
there's going to be a layer of liquidity above these highs
321
00:21:31,769 --> 00:21:37,379
and above the mid figure, okay, so 6450 which is this black
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00:21:37,379 --> 00:21:41,099
line here, and then 10 pips above it, which is 6460 and 10
323
00:21:41,099 --> 00:21:45,239
pips below is 6440 so we have a standard deviation of 10
324
00:21:45,239 --> 00:21:47,909
pips now, I don't want to make it too complicated, but just
325
00:21:47,909 --> 00:21:51,839
understand that what I'm showing you here, this is about the
326
00:21:52,559 --> 00:21:55,829
general rule of thumb, you're going to get that seems really
327
00:21:55,829 --> 00:21:59,339
technical. Just know that whenever we have a previous high
328
00:21:59,819 --> 00:22:03,779
or Previous low power did this here, I would do the same
329
00:22:03,779 --> 00:22:06,509
thing around this low here because the low in this candle
330
00:22:07,919 --> 00:22:13,739
comes in at 6378. So we have an institutional level of 80.
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00:22:13,769 --> 00:22:20,189
So if you're again, if you're new here 00 level, point 80 or
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00:22:20,219 --> 00:22:25,829
80, in this case here 50, mid figure, and point 20 or 20, in
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00:22:25,859 --> 00:22:28,709
instance, for Australian dollar, so you have mid figure
334
00:22:28,709 --> 00:22:32,999
levels that's very sensitive at level 20 and the 00 levels.
335
00:22:33,419 --> 00:22:35,789
Now, why are these levels important? Why are they
336
00:22:35,789 --> 00:22:41,219
significant is because a lot of large fund traders make
337
00:22:41,219 --> 00:22:44,699
their orders very easy for processing and they just put them
338
00:22:44,699 --> 00:22:48,719
in there at that level. A lot of commerce gets done at those
339
00:22:48,719 --> 00:22:51,149
levels too. So when there's global commerce that comes into
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00:22:51,149 --> 00:22:55,679
the marketplace, IBM needs to do business in Japan so they
341
00:22:55,679 --> 00:22:59,369
have to turn dollars into yen when they put orders in for
342
00:22:59,369 --> 00:23:06,719
that transaction, it's just easier for the bank to move that
343
00:23:06,719 --> 00:23:11,789
into those levels and do the commerce there. So, again,
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00:23:12,089 --> 00:23:16,349
that's not important. It's nothing that needs to be known or
345
00:23:16,349 --> 00:23:20,069
followed or believed in. Okay, to see this work, all we're
346
00:23:20,069 --> 00:23:23,039
doing is studying a signature in price action, that will
347
00:23:23,039 --> 00:23:27,509
tend to repeat a lot. And this is one of the formations of
348
00:23:27,509 --> 00:23:31,439
optimal trade entry and why it forms here. Okay, so, again,
349
00:23:31,529 --> 00:23:34,139
the daily chart, we're assuming the previous day's high
350
00:23:34,319 --> 00:23:38,579
should be traded to and if it does, it should be bullish and
351
00:23:38,579 --> 00:23:42,899
look to see higher prices. If it goes below the previous
352
00:23:42,899 --> 00:23:48,359
day's low, that means that we can't be as bullish, but we
353
00:23:48,359 --> 00:23:51,629
can now study to see if we have a bearish optimal trade
354
00:23:51,629 --> 00:23:54,929
entry because the previous day's low has been violated. So
355
00:23:55,019 --> 00:23:57,569
there's always a study and it's not about hints is very
356
00:23:57,569 --> 00:23:59,849
important. Write this down and underline it several times
357
00:23:59,849 --> 00:24:02,099
and highlight it and draw all kinds of, you know,
358
00:24:02,219 --> 00:24:04,499
annotations around that draw your attention how important
359
00:24:04,499 --> 00:24:07,019
this is, it's not about being right or wrong.
360
00:24:08,550 --> 00:24:12,480
The study is to show you what it looks like every single day
361
00:24:12,480 --> 00:24:15,900
and how you're going to go into the chart. So when I show
362
00:24:15,900 --> 00:24:20,730
these examples, again, it's just to train your eye to see
363
00:24:20,820 --> 00:24:24,030
the thing I'm showing you over and over and over again. And
364
00:24:24,030 --> 00:24:28,980
you're gonna find that this is exactly what it tends to do
365
00:24:29,280 --> 00:24:32,850
in other markets as well. It's not just me form fitting it
366
00:24:32,940 --> 00:24:37,440
into this one because it looks pretty okay. So again, the
367
00:24:37,440 --> 00:24:39,480
idea is we're looking for the previous day's high on the
368
00:24:39,480 --> 00:24:43,140
sixth the be traded to it does here and then we consolidate
369
00:24:43,140 --> 00:24:45,900
and retrace a little bit and we hang around once it hits
370
00:24:45,900 --> 00:24:50,490
that 6450 level, which that black line here. It does blow
371
00:24:50,490 --> 00:24:53,670
out the previous day's high not by much but it does. And
372
00:24:53,670 --> 00:24:56,370
then it gyrates down 10 pips or a little bit more than that,
373
00:24:56,610 --> 00:24:59,610
and picks up more orders. What is it doing, it's gathering
374
00:24:59,610 --> 00:25:02,190
more orders. here and then there's a displacement here,
375
00:25:02,430 --> 00:25:05,790
price starts to create a run up above the previous day's
376
00:25:05,790 --> 00:25:09,780
high with a little more meaningful run. So the shallow run
377
00:25:09,780 --> 00:25:12,540
here gets overtaken here. And then price does what it
378
00:25:12,540 --> 00:25:16,320
returns back to the 6450 mid figure and consolidates in
379
00:25:16,320 --> 00:25:21,750
between 6460 6450. And what is it doing? It's allowing all
380
00:25:21,750 --> 00:25:25,890
the orders that was above the previous day's high and around
381
00:25:26,010 --> 00:25:32,370
6450. An order bank gets depleted because of the time it's
382
00:25:32,370 --> 00:25:34,950
sitting in here. Now when I say order bank, it's it's
383
00:25:34,950 --> 00:25:39,090
basically a huge collection of orders that may or may not be
384
00:25:39,090 --> 00:25:42,060
in the marketplace around here, but as it sits in here,
385
00:25:42,570 --> 00:25:45,570
people will start to build a bias or sentiment about what
386
00:25:45,570 --> 00:25:48,870
they think the Australian dollar is going to do. In terms of
387
00:25:49,050 --> 00:25:52,680
bullishness or bearishness. These orders that are
388
00:25:52,710 --> 00:25:58,800
accumulated in here are going to build up over time. Price
389
00:25:58,800 --> 00:26:02,430
makes a run above this 6460 level and it starts just get up
390
00:26:02,430 --> 00:26:06,990
into the 6470. But it's not important. We're looking for
391
00:26:07,230 --> 00:26:12,360
price to go to a specific time and specific price. So we're
392
00:26:12,360 --> 00:26:15,180
looking at time and price. That's what makes optimal trade
393
00:26:15,180 --> 00:26:18,930
entry or the ICT optimal trade entry pattern. What it is,
394
00:26:19,200 --> 00:26:21,480
it's not just simply going in there and saying, okay, every
395
00:26:21,480 --> 00:26:24,120
time that price retraces it, because otherwise that's just
396
00:26:24,120 --> 00:26:28,590
Fibonacci trading, okay? Or ratio trading, or harmonic
397
00:26:28,620 --> 00:26:31,530
trading, you know, I'm saying it everyone's got a name for
398
00:26:31,530 --> 00:26:34,500
it, okay? But what I'm showing you what makes this optimal,
399
00:26:34,950 --> 00:26:38,460
okay? is the fact that it's occurring at a key time of day.
400
00:26:39,000 --> 00:26:42,300
Now, I'm not, I'm not teaching you, ICT kill zones. Okay,
401
00:26:42,300 --> 00:26:46,620
I'm gonna make it very, very simple. It's specific times a
402
00:26:46,620 --> 00:26:49,080
window, a window that begins in a window to ends and then
403
00:26:49,080 --> 00:26:53,550
we're only focusing during the New York session. Okay, so
404
00:26:53,550 --> 00:26:56,700
it's not the New York kill zone. It's the new york session.
405
00:26:56,880 --> 00:27:01,200
So it allows a great deal of flexibility It allows you also
406
00:27:01,200 --> 00:27:05,820
to look for this pattern with specific envelopes and time
407
00:27:05,820 --> 00:27:08,610
where it begins and ends. If it doesn't occur, then you
408
00:27:08,640 --> 00:27:11,910
can't do anything with it. It may form later on, and you'll
409
00:27:11,910 --> 00:27:14,790
be like, Oh, I didn't see it then and I didn't take it in.
410
00:27:14,970 --> 00:27:19,200
So I'm mad. Don't be mad. You only want something that makes
411
00:27:19,200 --> 00:27:22,980
sense and a time where you anticipate it occurring. This is
412
00:27:23,850 --> 00:27:30,240
discipline, this is focusing on a rule based premise. And
413
00:27:30,270 --> 00:27:34,080
following your price action model. This is the way
414
00:27:34,080 --> 00:27:37,200
professional traders do it. They don't get lacks in their
415
00:27:37,620 --> 00:27:41,100
rule rules and and say, Okay, well, it was good. Last 12
416
00:27:41,100 --> 00:27:44,190
times I did it, but this time, I just feel lucky. And I'm
417
00:27:44,190 --> 00:27:47,250
just going to do things slightly different. They don't do
418
00:27:47,250 --> 00:27:51,180
that. Okay, generally, if you have a model or trading plan,
419
00:27:52,080 --> 00:27:55,200
you want to stick to the rules. And that way, you're not
420
00:27:55,200 --> 00:27:58,770
going to be confused when things go awry. It's just simply a
421
00:27:58,770 --> 00:28:02,250
losing trade. You're not going to be able to avoid every
422
00:28:02,280 --> 00:28:06,780
instance of that occurring. Everyone takes losses. I take
423
00:28:06,870 --> 00:28:12,090
losses. I have lost money, okay? You're going to lose money,
424
00:28:12,180 --> 00:28:14,700
you can't avoid it. It's absolutely going to happen. If you
425
00:28:14,700 --> 00:28:18,510
put life money in here, you're going to lose money. But if
426
00:28:18,510 --> 00:28:23,130
you learn how to do this, you're going to see how often this
427
00:28:23,130 --> 00:28:26,550
signature becomes very familiar in price action, and I'll
428
00:28:26,550 --> 00:28:31,020
leave up to you what that means on an individual basis. So
429
00:28:31,050 --> 00:28:34,410
price stays around and meanders up and down gyrates until we
430
00:28:34,410 --> 00:28:37,830
get to a specific time of the day and this is going to be
431
00:28:38,070 --> 00:28:43,290
8:30am to 11 o'clock in the morning, New York time, these
432
00:28:43,290 --> 00:28:48,810
are always new york times 830 New York time to 11 o'clock,
433
00:28:49,080 --> 00:28:49,950
New York time.
434
00:28:51,270 --> 00:28:55,320
Do not email me Why is this time this and not in New York
435
00:28:55,350 --> 00:28:58,620
kill zone times? I'm not teaching mentorship. I'm not
436
00:28:58,620 --> 00:29:02,400
teaching ICT Killzone. I'm teaching you a specific price
437
00:29:02,400 --> 00:29:05,700
action model with role based ideas. And you work with just
438
00:29:05,700 --> 00:29:09,150
this, okay? I'm not reinventing it because my stuff doesn't
439
00:29:09,150 --> 00:29:12,540
work anymore. Okay, that's not what I'm doing. I'm making a
440
00:29:12,540 --> 00:29:16,200
very specific window of time. And it's based on New York
441
00:29:16,200 --> 00:29:21,930
time. So if you want to see the time window I have set you
442
00:29:21,930 --> 00:29:24,570
can see right here, this is what I have in my time setting.
443
00:29:25,200 --> 00:29:29,190
So this is what you'd look for. And then your chart will
444
00:29:29,190 --> 00:29:34,470
look like mine is here. If you live in a different time
445
00:29:34,470 --> 00:29:36,840
zone, a different country, then you need to figure out what
446
00:29:36,840 --> 00:29:40,950
that time is for you locally in where you live at. But this
447
00:29:40,950 --> 00:29:47,070
is the time that this pattern tends to form. Okay, now, the
448
00:29:47,070 --> 00:29:50,280
green shaded area in here is what everyone's familiar with
449
00:29:50,280 --> 00:29:53,550
in terms of my pattern optimal trade entry optimal trade
450
00:29:53,550 --> 00:30:00,390
entry is the 62% retracement level to the 797 retracement
451
00:30:00,390 --> 00:30:09,780
level and the mid point or 70.5 level you can see here
452
00:30:11,219 --> 00:30:16,349
and these are the levels that are highlighted. Okay. So
453
00:30:16,409 --> 00:30:20,489
everything here is what I have on my fit. So these are the,
454
00:30:20,519 --> 00:30:23,939
that's the levels that you would have for your Fibonacci
455
00:30:23,939 --> 00:30:27,449
over here, okay on trading view, so that way it's included
456
00:30:27,449 --> 00:30:30,359
now they don't change, they're not flipping around and
457
00:30:30,749 --> 00:30:34,349
making it fit because I gotta have a winner every single
458
00:30:34,349 --> 00:30:38,429
day. That's not what I'm doing here. Okay. So again, all of
459
00:30:38,429 --> 00:30:42,389
this gyration is just simply working the Bank of orders that
460
00:30:42,389 --> 00:30:45,299
come and go around that mid figure level and above the
461
00:30:45,299 --> 00:30:49,439
previous day's high. Now, remember earlier I said one of two
462
00:30:49,439 --> 00:30:51,059
things are going to happen when you're bullish, and if it
463
00:30:51,059 --> 00:30:54,119
trades to the previous day's high one it takes off and it
464
00:30:54,119 --> 00:30:56,009
doesn't give you a chance to do anything and you miss that
465
00:30:56,009 --> 00:31:00,299
opportunity or it starts to gyrate around the previous stays
466
00:31:00,299 --> 00:31:04,319
high. Okay, and you want to know what institutional price
467
00:31:04,319 --> 00:31:07,769
level you're working around the closest to it. Okay, so
468
00:31:07,769 --> 00:31:09,689
normally when we're saying closest to the previous day's
469
00:31:09,689 --> 00:31:14,279
high, in this instance, it's 6450. And then you do an
470
00:31:14,279 --> 00:31:18,059
envelope of 10 pips above that, and 10 pips below it. And
471
00:31:18,059 --> 00:31:22,499
then you, you allow basically price to generate a trading
472
00:31:22,499 --> 00:31:27,749
range until we get to this little sweet spot in time between
473
00:31:27,749 --> 00:31:31,649
830 in the morning, why 830 for your notes, 830 there's
474
00:31:31,649 --> 00:31:33,959
usually a lot of news that comes out during the New York
475
00:31:33,959 --> 00:31:39,509
session. Okay, so the 830 new session. Usually, it's like
476
00:31:39,509 --> 00:31:44,249
non farm payroll will come out some other kind of report. I
477
00:31:44,249 --> 00:31:46,289
don't off the top my head know what they are. And I don't
478
00:31:46,289 --> 00:31:48,449
really care to know what they are really, because I don't
479
00:31:48,479 --> 00:31:52,829
have any real specific affinity for one particular set of
480
00:31:52,859 --> 00:31:56,159
data because they always come in in now in terms of what's
481
00:31:56,159 --> 00:31:59,579
relevant right now. What's the focus right now, whereas at
482
00:31:59,579 --> 00:32:02,879
the time of this Recording employment numbers, or the lack
483
00:32:02,879 --> 00:32:06,209
of employment is the main focus right now, because
484
00:32:06,209 --> 00:32:10,349
everyone's at home or without a job because of the illness
485
00:32:10,349 --> 00:32:16,169
that's been spreading. So when we get to 830, you want to
486
00:32:16,169 --> 00:32:20,579
see price. Try to trade when you're bullish trade down into
487
00:32:20,669 --> 00:32:27,029
62 to 79% retracement level on the fib. Now, that is your
488
00:32:27,029 --> 00:32:33,179
range determined from the low to the high once this previous
489
00:32:33,179 --> 00:32:37,949
day's high is broken. If this was a bearish scenario, we
490
00:32:37,949 --> 00:32:40,619
would just do the opposite of what's been seen here. Once
491
00:32:40,619 --> 00:32:44,339
the low of the previous day's low is broken. We would use a
492
00:32:44,339 --> 00:32:49,289
short term high to a short term low that would be below the
493
00:32:49,289 --> 00:32:51,419
previous day's low when you're bearish. But in this
494
00:32:51,419 --> 00:32:54,419
instance, obviously we're bullish, so we want to use a short
495
00:32:54,419 --> 00:32:59,969
term low to the short term high so this range is the range
496
00:32:59,999 --> 00:33:05,669
Prior to the formation of the New York session of 830 in the
497
00:33:05,669 --> 00:33:07,829
morning, New York time to 11 o'clock in the morning, New
498
00:33:07,829 --> 00:33:12,719
York time, why 11 o'clock, that's typically around when
499
00:33:12,749 --> 00:33:17,159
London clothes occurs. And usually it's also the time when
500
00:33:17,819 --> 00:33:22,919
the am session starts to wane. In the New York session and
501
00:33:23,399 --> 00:33:28,109
early lunch takers did leave the marketplace. That volume is
502
00:33:28,229 --> 00:33:32,249
no longer available in through noon to one o'clock in the
503
00:33:32,249 --> 00:33:35,429
afternoon. That's generally the New York lunch and it can be
504
00:33:35,429 --> 00:33:38,099
quiet during those times. You only want to be looking for
505
00:33:38,099 --> 00:33:41,609
this pattern up to 11 o'clock in the morning, after 11
506
00:33:41,609 --> 00:33:46,409
o'clock. It can form but it's something other than what I'm
507
00:33:46,409 --> 00:33:49,799
teaching here. And that's not important. The point is, is
508
00:33:49,799 --> 00:33:52,709
you want to see this pattern form during this time of day
509
00:33:52,859 --> 00:33:57,029
with the bias determined by what you determined. When your
510
00:33:57,029 --> 00:33:58,709
daily chart Do you think the previous day's highs gonna be
511
00:33:58,709 --> 00:34:00,959
taken out or the previous day's low today. Now, here's the
512
00:34:00,959 --> 00:34:03,539
thing, the beautiful, beautiful thing really is is many
513
00:34:03,539 --> 00:34:06,179
times you don't even need a bias. You just wait for the
514
00:34:06,419 --> 00:34:09,659
chart to show you what it's done. Does it take out the
515
00:34:09,659 --> 00:34:13,019
previous day's high, or the previous day's low? At this time
516
00:34:13,019 --> 00:34:17,579
of day? What has it done while the here's Midnight in New
517
00:34:17,579 --> 00:34:21,509
York, and during the London session, it created a run
518
00:34:21,509 --> 00:34:26,729
higher. So there's been a lot of buying taking place to get
519
00:34:26,729 --> 00:34:30,089
above the previous day's high, does it create an optimal
520
00:34:30,089 --> 00:34:33,209
trade entry, so the low to the high that's why I had the fib
521
00:34:33,209 --> 00:34:35,819
drawn on, even though it's drugged out to here that way, you
522
00:34:35,819 --> 00:34:39,929
can see over the levels how they line up nicely with time.
523
00:34:41,189 --> 00:34:45,389
So we have two components here we have the element of time.
524
00:34:47,309 --> 00:34:52,199
And we have the element of price. So price is the level
525
00:34:52,199 --> 00:34:56,009
determined by the fib relative to its high and low of that
526
00:34:56,009 --> 00:34:56,609
range.
527
00:34:57,960 --> 00:35:04,530
Time is static This is always static, it does not change, it
528
00:35:04,530 --> 00:35:07,620
does not deviate. It's 830 in the morning, New York time to
529
00:35:07,620 --> 00:35:12,450
11 o'clock, it does not change. So the easy way to do that
530
00:35:12,450 --> 00:35:17,190
is simply just get a horizontal, I'm sorry, a vertical line
531
00:35:19,410 --> 00:35:20,100
and put it
532
00:35:23,730 --> 00:35:30,210
at these specific times. If you do that,
533
00:35:40,710 --> 00:35:45,930
you know, in between these two vertical lines, you don't
534
00:35:45,930 --> 00:35:51,210
need to have a guess as to when something's going to form.
535
00:35:51,240 --> 00:35:54,510
You know, when when price enters this area between the first
536
00:35:54,510 --> 00:35:57,750
vertical line up to the second vertical line, you're
537
00:35:57,750 --> 00:36:01,080
anticipating an optimal trade entry to form So that's the
538
00:36:01,110 --> 00:36:05,700
expectation that you'll have by having your vertical lines
539
00:36:05,700 --> 00:36:07,740
on here. So you don't right now have a whole lot of business
540
00:36:07,740 --> 00:36:13,710
on this chart. But you can see clearly that this is what the
541
00:36:13,710 --> 00:36:17,550
time element would be to this pattern. Price is always going
542
00:36:17,550 --> 00:36:21,150
to be between 62% annotation level and the sub nine tracing
543
00:36:21,150 --> 00:36:26,430
level, which is 79 here, and 62 is just underneath that 50
544
00:36:26,430 --> 00:36:30,570
level. Okay, so 6450 is this black line here. So it cleans
545
00:36:30,570 --> 00:36:37,320
it up a little bit. Okay, so you can see 60 to 79, and 70.5,
546
00:36:37,560 --> 00:36:41,550
which is a sweet spot or optimal trade entry. Okay? When
547
00:36:41,550 --> 00:36:46,440
price drops down into this level, you can be a buyer on
548
00:36:46,440 --> 00:36:50,460
paper or demo, and I'm not going to save you on that,
549
00:36:50,640 --> 00:36:53,490
because I'm not licensed to do that, but we're studying
550
00:36:53,490 --> 00:36:56,610
price action, and you could be a buyer here with the
551
00:36:56,610 --> 00:37:00,000
expectation that we would see it expand. now. I'll get up
552
00:37:00,000 --> 00:37:03,360
Here to talk about these levels in a minute. But right now,
553
00:37:03,810 --> 00:37:07,020
this low is where your stop would have to be below that.
554
00:37:07,260 --> 00:37:10,320
Okay, so the lowest candle, what we're anchoring the fifth
555
00:37:10,320 --> 00:37:14,700
on the low is 6434 and seventh with that so you can do a
556
00:37:14,700 --> 00:37:20,850
stop at 6430. Okay, so here's your stop 6430 darker colors
557
00:37:20,850 --> 00:37:28,170
and agency. So, your stock could be at 6430. So your stock
558
00:37:28,170 --> 00:37:33,750
could be at 6430. Your entry could be at the 62% retracement
559
00:37:33,750 --> 00:37:38,190
level is 6449 and seven bets. So basically we can just
560
00:37:38,190 --> 00:37:42,720
simply say if a trace is 6450 you can be a buyer. Okay, cuz
561
00:37:42,720 --> 00:37:47,400
you're gonna look for the institutional level and the lower
562
00:37:47,400 --> 00:37:51,240
you get down into the 700 retracement level, the less likely
563
00:37:51,240 --> 00:37:54,030
you're going to get your fill because you demand 79%
564
00:37:54,030 --> 00:37:56,700
retracement level here you may or may not get that with the
565
00:37:56,700 --> 00:38:00,720
spread. Okay so what I like to use is 60% trade level and
566
00:38:00,720 --> 00:38:03,540
then maybe factor in the spread there. But if you're using
567
00:38:03,540 --> 00:38:07,680
62, generally it's a little bit more forgiving. Because you
568
00:38:07,680 --> 00:38:10,650
don't need to add always in my, in my experience using 60%
569
00:38:10,650 --> 00:38:14,790
tracing level, you can absolutely get it because you're
570
00:38:14,790 --> 00:38:18,120
going to dip even further generally into the 70 and a half.
571
00:38:18,420 --> 00:38:20,820
And sometimes it is sometimes trade some level but that's
572
00:38:20,820 --> 00:38:26,760
our range price and this is our time window. So the fact
573
00:38:26,760 --> 00:38:32,520
that we're looking at this specific area, if we use a limit
574
00:38:32,520 --> 00:38:35,550
order at 62% retracement level, if it trades below that
575
00:38:35,550 --> 00:38:38,700
you're filled, your stock would be placed here and then
576
00:38:38,700 --> 00:38:46,740
using the fib levels. Point 54.5 negative 0.5 rather, this
577
00:38:46,740 --> 00:38:52,050
is an area where you take first profit if it allows you if
578
00:38:52,050 --> 00:38:57,030
it allows you 15 pips or more. Okay, so there's your rules
579
00:38:57,120 --> 00:39:03,030
you want to take 15 pips at first scalp exit to negative 0.5
580
00:39:03,030 --> 00:39:06,960
level, and then the negative one level, which would be one
581
00:39:06,960 --> 00:39:10,530
standard deviation of the range that you calculate for your
582
00:39:10,530 --> 00:39:13,170
fib. So now what you're drawing your low to your high here,
583
00:39:13,590 --> 00:39:18,630
that range here if it's duplicated, and basically projected
584
00:39:18,630 --> 00:39:22,860
higher, a measured move of that would be this level up here.
585
00:39:23,340 --> 00:39:26,130
Now, since we have that, since it's suggesting here in the
586
00:39:26,130 --> 00:39:33,180
fib, it's 0.6513 and five PIP bets. We want the highest
587
00:39:33,180 --> 00:39:36,780
degree of probability for our Global's for scaling and
588
00:39:36,780 --> 00:39:39,630
taking profits. This would be an area where we can take
589
00:39:39,630 --> 00:39:43,890
profits again. So first scaling would be here at negative
590
00:39:43,890 --> 00:39:49,710
0.5. But the minimum expectation is 15 pips, so you have to
591
00:39:49,710 --> 00:39:53,520
be able to get 15 pips. You can't get 15 pips here, but you
592
00:39:53,520 --> 00:39:56,760
can get it here or more than this is where you would take
593
00:39:56,760 --> 00:40:02,160
first profit. Okay, here is just One level we read expect
594
00:40:02,160 --> 00:40:06,960
it. In this instance here we can see at 6450 or so getting
595
00:40:06,960 --> 00:40:15,630
out at 6493. That's 43 pips almost 43 pips of potential
596
00:40:15,630 --> 00:40:17,640
profit at first scaling.
597
00:40:19,529 --> 00:40:26,909
The next level up here would be 6513, and five, but it may
598
00:40:26,909 --> 00:40:29,759
not get to these levels. Again, Fibonacci is not the answer
599
00:40:29,759 --> 00:40:32,399
to everything in the marketplace. Even though this is giving
600
00:40:32,399 --> 00:40:37,379
you a general rule principle, and in theory, it's going to
601
00:40:37,379 --> 00:40:41,579
get you very, very close to some really sweet setups do not
602
00:40:41,579 --> 00:40:45,269
demand that the price reaches to these levels for your
603
00:40:45,269 --> 00:40:48,149
targets. What I do and this is how I teach my students as
604
00:40:48,149 --> 00:40:52,139
well, if this is the fifth level that we're looking for,
605
00:40:52,439 --> 00:40:56,249
okay, in other words, if your calculations suggest that this
606
00:40:56,249 --> 00:41:00,179
is what the range level for negative one would be, The
607
00:41:00,179 --> 00:41:09,389
projection 6510 is the nearest 10 level without getting up
608
00:41:09,389 --> 00:41:12,329
to that level. So what we're doing is we're rounding down to
609
00:41:12,329 --> 00:41:15,809
the next 10 level. Okay, so wherever this level would be,
610
00:41:15,809 --> 00:41:20,699
say it was 15, it would still be 6510 for me, so I'd be
611
00:41:20,699 --> 00:41:25,469
looking to take profit, or scaling out here. If this level
612
00:41:25,469 --> 00:41:29,519
was at 15 or more pips, this would be my first scaling from
613
00:41:29,519 --> 00:41:35,879
my entry down here at 6450. So 6450 was my limit on entry
614
00:41:36,539 --> 00:41:42,989
for general principles, and the stop would be 6430. So it's
615
00:41:42,989 --> 00:41:48,179
a 20 PIP stop. And, again, forget risk reward. We're not
616
00:41:48,179 --> 00:41:50,549
teaching that don't think it has to be three to one, it has
617
00:41:50,549 --> 00:41:54,419
to be five to one. If it's one to one, it's still good. In
618
00:41:54,419 --> 00:41:57,089
my opinion, it's good because if you have a setup that
619
00:41:57,089 --> 00:41:59,489
repeats over and over and over again very frequently, I
620
00:41:59,489 --> 00:42:01,559
understand that Except the fact I'm not going to be a winner
621
00:42:01,559 --> 00:42:04,349
on every single trade, I'm going to take losses. But if I
622
00:42:04,349 --> 00:42:09,179
have a system that doesn't require me to spend a lot of
623
00:42:09,179 --> 00:42:13,259
money when I'm losing, but I do have a high frequency of
624
00:42:13,619 --> 00:42:17,519
accuracy. And if you look at this, you'll determine if this
625
00:42:17,519 --> 00:42:20,279
does or doesn't have a lot of accuracy. But nonetheless, by
626
00:42:20,279 --> 00:42:24,779
looking at and studying it, with this logic behind it, it's
627
00:42:24,779 --> 00:42:28,139
not the fib that's creating it. The logic is we've traded
628
00:42:28,139 --> 00:42:31,019
above the previous day's high in a relatively bullish
629
00:42:31,049 --> 00:42:36,449
scenario. So we're lending well on this example for bias but
630
00:42:36,449 --> 00:42:39,569
it doesn't require bias if you blow up the previous day's
631
00:42:39,569 --> 00:42:42,449
high or block the previous day's low. You still look for
632
00:42:42,449 --> 00:42:46,919
these general theories to pan out. And again, it's not about
633
00:42:46,919 --> 00:42:48,719
right or wrong. You're not supposed to be taking live trades
634
00:42:48,719 --> 00:42:50,789
with this. I'm not enticing you to take trades with this.
635
00:42:51,089 --> 00:42:54,599
I'm teaching you how to read the tape, how to read the price
636
00:42:54,599 --> 00:42:59,339
action and forecast setups that will repeat if you know what
637
00:42:59,339 --> 00:43:04,229
you're looking for. So, first profit here we could take
638
00:43:04,259 --> 00:43:08,339
obviously at 93, and eight that that's, that's 40 plus pips
639
00:43:08,369 --> 00:43:12,359
so that definitely will meet the minimum criteria 15 pips
640
00:43:12,359 --> 00:43:15,569
before for scaling. And then you can get another scaling out
641
00:43:15,599 --> 00:43:20,279
at 6510, which has rounded down to from the fib level here,
642
00:43:20,429 --> 00:43:23,249
it can hit this fib level or can go through it a little bit
643
00:43:23,249 --> 00:43:25,769
more. And that's fine. This is where you would take your
644
00:43:25,769 --> 00:43:31,409
next level of profit taking. If you can get first scaling,
645
00:43:32,009 --> 00:43:35,249
where it's 15 pips or more, you want to start reducing your
646
00:43:35,279 --> 00:43:39,239
your risk on your stop to about midpoint of the range that
647
00:43:39,239 --> 00:43:41,669
you identified here. Because if it comes back down into
648
00:43:41,669 --> 00:43:43,649
that, it's generally not a good idea to hold on to the
649
00:43:43,649 --> 00:43:46,769
trade. Let let it stop you out. You've taken something
650
00:43:46,829 --> 00:43:50,939
partial, and then you reduced your risk. And then if it
651
00:43:50,939 --> 00:43:53,009
comes back down and stops you out, you've taken something
652
00:43:53,039 --> 00:43:56,849
off the bone you got a bite of flesh, and if it comes back
653
00:43:56,849 --> 00:43:58,889
down, you didn't get stopped out with a loss. That's in
654
00:43:58,889 --> 00:44:01,589
theory, what we're saying Hear. And if it gets second
655
00:44:03,149 --> 00:44:06,209
scaling, if you ever get a second scaling, you have to be
656
00:44:06,209 --> 00:44:09,299
above your entry point, at least two or three pips and just
657
00:44:09,419 --> 00:44:14,699
let it go. Okay, so that way you've gotten two pieces of
658
00:44:14,699 --> 00:44:17,009
meat off the bone. And now you're in a position where your
659
00:44:17,009 --> 00:44:20,459
stop should, in theory protect you from taking a loss. On
660
00:44:20,459 --> 00:44:22,769
the remaining balance, it does not mean you can't take a
661
00:44:22,769 --> 00:44:26,429
loss because you can, as long as the trades open, you are
662
00:44:26,909 --> 00:44:31,469
inviting risk, and the market can always get down or above
663
00:44:31,679 --> 00:44:35,069
your stop loss and that's just life. Okay, and a lot of
664
00:44:35,069 --> 00:44:37,289
people don't realize that they're listening to people
665
00:44:37,289 --> 00:44:40,409
online. Oh, my stops gonna do my job. Nope, not always
666
00:44:40,439 --> 00:44:44,729
assist. That's the best case scenario. And sometimes the
667
00:44:44,729 --> 00:44:49,169
best case scenario doesn't work out. So we can see how price
668
00:44:49,169 --> 00:44:52,619
eventually makes a run up into 6510.
669
00:44:54,990 --> 00:44:57,810
Right, Derek gives us a nice little opportunity to scale off
670
00:44:58,110 --> 00:45:03,210
10 pips. I'm sorry. 6510 which is three and a half pips
671
00:45:03,210 --> 00:45:06,480
below where the fib projected to, but that does not mean
672
00:45:06,480 --> 00:45:09,180
collapse the trade. Okay? It doesn't mean get out of the
673
00:45:09,180 --> 00:45:13,080
trade leave a little bit on. So the again, the assumption is
674
00:45:13,110 --> 00:45:15,660
when your paper trading this or if you're a demo trading and
675
00:45:15,690 --> 00:45:19,260
you want to use a lot size that allows you to have multiple,
676
00:45:19,380 --> 00:45:22,860
in my case, I like to look for leverage that allows me to
677
00:45:22,860 --> 00:45:27,210
take three partials and then give me something to let run.
678
00:45:27,840 --> 00:45:31,920
That means I can get four stages of scaling out of that
679
00:45:31,950 --> 00:45:34,980
position. Not all positions will allow me to do that. And
680
00:45:34,980 --> 00:45:37,800
here's the thing. If it doesn't let me do that. I don't take
681
00:45:37,800 --> 00:45:41,370
that trade. So I've given you something bonus in here, where
682
00:45:41,370 --> 00:45:47,280
it helps me determine with a decision based process and, and
683
00:45:47,280 --> 00:45:51,030
protocols that leads to me getting into a trade. There's
684
00:45:51,030 --> 00:45:55,050
lots of times I see moves coming, and I can see them for me,
685
00:45:55,200 --> 00:45:57,450
I can see exactly when they're going to turn exactly where
686
00:45:57,450 --> 00:46:00,720
they're likely to go, but I'm not in them because They don't
687
00:46:00,720 --> 00:46:05,100
meet all the criteria that I demand of my setups. So there's
688
00:46:05,100 --> 00:46:09,390
nothing wrong with being very, very dependent on your rules
689
00:46:09,390 --> 00:46:11,640
and only executing in that it's actually a good thing. It
690
00:46:11,640 --> 00:46:16,020
builds discipline, it builds maturity as a trader, and you
691
00:46:16,020 --> 00:46:20,640
will not be shaken by a lot of the things that a trader that
692
00:46:20,640 --> 00:46:23,430
doesn't have rule based ideas that sticks to them very
693
00:46:23,430 --> 00:46:27,720
rigid. Will they will generally be encountering a lot more
694
00:46:27,750 --> 00:46:33,480
stress, anxiety, because they're always guessing as to what
695
00:46:33,480 --> 00:46:35,970
they should be doing versus this is what I'm doing. This is
696
00:46:35,970 --> 00:46:37,920
the time of day I'm doing it. And I'm looking forward to go
697
00:46:37,920 --> 00:46:40,380
long. I'm looking for it to go short. If it doesn't fit the
698
00:46:40,380 --> 00:46:44,850
criteria, you don't do anything. And you let it go. And
699
00:46:44,850 --> 00:46:50,520
you'll see over weeks of time doing that. You'll, in theory,
700
00:46:50,550 --> 00:46:54,600
protect yourself from taking from taking on more risk than
701
00:46:54,600 --> 00:46:58,230
you're supposed to, or should and you're gonna be working
702
00:46:58,230 --> 00:47:02,520
towards a perception of price action that is going to be
703
00:47:02,550 --> 00:47:05,700
appreciated by you. And your bottom line and your results
704
00:47:05,730 --> 00:47:09,060
will show that. But again, you're going to take losses,
705
00:47:09,060 --> 00:47:12,180
you're going to get it wrong. This is not a magic recipe for
706
00:47:12,180 --> 00:47:16,170
always winning trading, okay? It's just something to start
707
00:47:16,170 --> 00:47:20,010
with. It's rule based, and you stick with it come hell or
708
00:47:20,010 --> 00:47:24,540
high water. You do this for weeks, and you see if it pans
709
00:47:24,540 --> 00:47:28,230
out and shows any kind of merit. And I promise you, if you
710
00:47:28,230 --> 00:47:33,300
do this, you're going to see it. So the market comes up to
711
00:47:33,300 --> 00:47:37,530
that 6510 level has a reaction retraces back down into some
712
00:47:37,530 --> 00:47:41,490
overflow. And we want to keep something in and we want to
713
00:47:41,490 --> 00:47:45,030
keep a leader in water, see if we can catch a runner. And
714
00:47:45,030 --> 00:47:48,990
the fib will hopefully give us another level of importance.
715
00:47:49,110 --> 00:47:56,370
And if we scrunch it down Okay, we have 6552 and nine PIP
716
00:47:56,370 --> 00:48:00,720
bets. Okay, so that's the next level, which would be This
717
00:48:00,720 --> 00:48:04,560
range two times, that's one of it here. And then the second
718
00:48:04,560 --> 00:48:08,790
one here. So this is two standard deviations. This level in
719
00:48:08,790 --> 00:48:11,250
here, generally if for day trading, if you ever get an
720
00:48:11,250 --> 00:48:15,000
explosive move, I want to be out at this point here, and I'm
721
00:48:15,000 --> 00:48:19,650
content with. If it runs more, I don't care. I'm not a long
722
00:48:19,650 --> 00:48:22,230
term position trader, and it could continue for six months.
723
00:48:22,230 --> 00:48:25,500
And everybody can say, Yeah, but you missed this it ICT and
724
00:48:25,500 --> 00:48:28,320
it's I'm not interested, I could care less. I want
725
00:48:28,620 --> 00:48:31,980
consistency. I want continuity. And I want the ability to be
726
00:48:31,980 --> 00:48:34,110
able to see these things repeat over and over and over
727
00:48:34,110 --> 00:48:39,510
again. trades, okay? For a neophyte are mysterious. They
728
00:48:39,510 --> 00:48:42,390
sneak up on them, they surprise them. They're like, well,
729
00:48:42,420 --> 00:48:44,430
what just happened? You ever noticed that when you get
730
00:48:44,430 --> 00:48:49,740
online, and you see people on Twitter, Instagram, whatever,
731
00:48:49,770 --> 00:48:54,150
okay. Yeah, any of these chat room things, these these trade
732
00:48:54,150 --> 00:48:56,970
rooms, they're all like surprised Whoa, what happened with
733
00:48:56,970 --> 00:48:59,550
the so and so and now they're only interested in that pair
734
00:48:59,550 --> 00:49:04,740
or that mark? as it moved, you are not going to be
735
00:49:04,740 --> 00:49:09,600
surprised. You're going to be anticipating, okay, you're
736
00:49:09,600 --> 00:49:12,750
gonna be anticipating. And by anticipating things occurring
737
00:49:12,780 --> 00:49:17,250
around a specific time of day around a rule based idea and a
738
00:49:17,250 --> 00:49:19,650
pattern that you're familiar with, and seen over and over
739
00:49:19,650 --> 00:49:22,740
again. Now let's go back to that analogy about buying a car
740
00:49:22,920 --> 00:49:26,190
that you have a lot of affinity for. It's a sports car or
741
00:49:26,190 --> 00:49:29,520
it's a luxury car. You like this car, you can't imagine
742
00:49:29,520 --> 00:49:33,090
being anything else but the driver of that car and you buy
743
00:49:33,090 --> 00:49:36,000
it, you bring it home. Remember, generally when you look
744
00:49:36,000 --> 00:49:40,110
around, very soon after taking you home, you will start
745
00:49:40,110 --> 00:49:42,450
seeing that car more because you have
746
00:49:43,740 --> 00:49:49,710
activated your filter in your your attention, to elect to
747
00:49:49,710 --> 00:49:54,330
let these cars, get your attention. Okay, and that's what
748
00:49:54,330 --> 00:49:56,940
you're doing. You're teaching yourself to see this pattern
749
00:49:56,970 --> 00:50:01,320
over and over and over again in price action and By default,
750
00:50:01,770 --> 00:50:06,150
what happens is, when you start seeing it form live with
751
00:50:06,150 --> 00:50:08,910
everything on your chart annotating the time of day, what
752
00:50:08,910 --> 00:50:10,590
you're anticipating in terms of the direction that it's
753
00:50:10,590 --> 00:50:13,470
supposed to expand up or down relative to the market being
754
00:50:13,470 --> 00:50:16,500
bullish or bearish relative to it running the previous day's
755
00:50:16,500 --> 00:50:22,440
high or low. You will see the pattern form live. And you'll
756
00:50:22,440 --> 00:50:25,080
know what it looks like and you'll trust what you have
757
00:50:25,080 --> 00:50:30,180
practice in hindsight, weeks and months of it. And now, when
758
00:50:30,180 --> 00:50:33,690
you watch price action live, it'll be like, I see it. It's
759
00:50:33,690 --> 00:50:38,310
right there. And you won't be surprised. You won't be taken
760
00:50:38,310 --> 00:50:41,670
back like wow, where did that this come from? Price is
761
00:50:41,670 --> 00:50:47,640
algorithmic. It repeats every single day on elements of time
762
00:50:47,940 --> 00:50:52,230
and price. It does not work on magic Fibonacci, the
763
00:50:52,230 --> 00:50:56,940
Fibonacci is just a way for me to frame the context. The use
764
00:50:56,940 --> 00:51:00,990
this pattern, okay, I didn't reinvent flip nachi I'm not
765
00:51:00,990 --> 00:51:04,200
trying to claim claim the three quarter pullback of a
766
00:51:04,200 --> 00:51:09,810
Fibonacci is mine, the logic of using the fib with time and
767
00:51:09,810 --> 00:51:12,180
the element of market structure that's me, that's my that's
768
00:51:12,180 --> 00:51:15,900
why it's called optimal trade entry. OTS is an abbreviation
769
00:51:15,900 --> 00:51:19,050
of those three words. What makes it optimal is it's
770
00:51:19,050 --> 00:51:23,340
occurring at a time of day when the market will likely spool
771
00:51:23,490 --> 00:51:26,580
in spread out in one particular direction over the other. So
772
00:51:26,580 --> 00:51:30,240
it's more inclined to go higher or lower relative to the
773
00:51:30,240 --> 00:51:34,230
things that I'm showing here. Alright, so anyway, so we have
774
00:51:34,230 --> 00:51:37,260
two opportunities here for scaling one, two, and this is the
775
00:51:37,260 --> 00:51:41,790
target where you would want to get out at the market trading
776
00:51:41,790 --> 00:51:46,020
right now. It's just about midpoint of that. And here, now
777
00:51:46,020 --> 00:51:49,260
you can use this midpoint, which I don't have a fib. If you
778
00:51:49,260 --> 00:51:55,710
want to add a fib for that level, it would be negative 1.0
779
00:51:56,520 --> 00:51:59,640
and that would give you a line right here. I just don't care
780
00:51:59,640 --> 00:52:04,200
to have it. In this point where the market is running, you
781
00:52:04,200 --> 00:52:08,580
want to have your stop loss below some point of support or
782
00:52:08,580 --> 00:52:14,520
structure that would Yes, make your stop be part of a pool
783
00:52:14,520 --> 00:52:17,400
of sell side liquidity or where a bank of sell stops would
784
00:52:17,400 --> 00:52:21,600
be, but you have already in theory taken one or two portions
785
00:52:21,630 --> 00:52:26,010
of profit out and your stock would just be above breakeven.
786
00:52:26,040 --> 00:52:29,340
So you want to look at where you are in terms of the current
787
00:52:29,340 --> 00:52:32,370
market structure. We had a run here it retraced and then
788
00:52:32,370 --> 00:52:36,330
rallied up multiple turns lower, so retrace multiple times.
789
00:52:36,930 --> 00:52:40,530
I like the idea of moving stock below here. Not below here.
790
00:52:41,430 --> 00:52:45,660
Okay, not below here. Why? Because this one we already had a
791
00:52:45,660 --> 00:52:49,500
run below these lows here and then we broke to new highs. We
792
00:52:49,500 --> 00:52:52,740
had a retracement to this low and retracement to this low
793
00:52:52,770 --> 00:52:56,250
which is basically the relative equal lows. So it could
794
00:52:56,280 --> 00:53:00,120
still get below here. It could break down. Hit that They'll
795
00:53:00,120 --> 00:53:02,880
go higher, longer term and I would miss out on that move,
796
00:53:03,060 --> 00:53:07,350
just trying to choke the trade with a really, really tight
797
00:53:07,350 --> 00:53:12,030
stop loss, which is not advisable. So we have this low
798
00:53:12,030 --> 00:53:15,600
that's much more appropriate for trailing stop loss and not
799
00:53:15,600 --> 00:53:19,950
jamming it up too tight and not giving the market room to
800
00:53:19,950 --> 00:53:23,700
breathe, especially because we're tracing this on a five
801
00:53:23,700 --> 00:53:27,300
minute chart. So the idea again, is we're looking for day
802
00:53:27,300 --> 00:53:31,350
trades, and not hold this thing for four weeks, not even for
803
00:53:31,350 --> 00:53:34,080
multiple days. But this is how you would manage your trade.
804
00:53:34,080 --> 00:53:39,360
So if all this occurred inside of the same trading day or
805
00:53:39,360 --> 00:53:43,470
same few hours, say it moves say all this movement here
806
00:53:43,500 --> 00:53:46,770
occurred in a little bit less time. The same thing I'm
807
00:53:46,770 --> 00:53:49,140
showing you here in terms of when you would move your stop
808
00:53:49,710 --> 00:53:52,800
would be the same thing. This is we have a reaction and we
809
00:53:52,800 --> 00:53:55,680
have two higher reactions. You don't want to put your stop
810
00:53:55,680 --> 00:53:59,460
loss at the nearest area where stops would be everybody else
811
00:53:59,460 --> 00:54:03,210
has their stop. loss below this low or here, mine would be
812
00:54:03,210 --> 00:54:06,660
down here. And I already banked two positions or two
813
00:54:06,660 --> 00:54:11,850
scalings. Okay, so if it gets to 6550 and nine PIP bets you
814
00:54:11,850 --> 00:54:14,880
would collapse the entire trade and be done and be content
815
00:54:14,880 --> 00:54:18,630
with that. So you would be so basically getting around 100
816
00:54:18,630 --> 00:54:24,090
pips movement from this particular trade with three partials
817
00:54:24,540 --> 00:54:29,550
or the final collapse here. Now if this level was higher up,
818
00:54:30,450 --> 00:54:33,180
okay, so no matter if you weren't getting this range here,
819
00:54:34,590 --> 00:54:38,820
and it allowed for 100 pips, but 100 pips occurs before the
820
00:54:39,240 --> 00:54:41,910
two standard deviations of the initial range to create your
821
00:54:41,910 --> 00:54:45,480
fib. So this is your range. This is one standard deviation
822
00:54:45,480 --> 00:54:47,850
over here. And then the other standard deviation would be
823
00:54:47,850 --> 00:54:54,090
here. If this level is above 100, pips, okay, and what's if
824
00:54:54,090 --> 00:54:59,970
this range here was like 6562, nine, okay, that would be
825
00:54:59,970 --> 00:55:04,740
awesome. 110 pips from your entry, you would take a partial
826
00:55:04,740 --> 00:55:09,870
at 100 pips flat, simply just take 100 pips bank something
827
00:55:09,870 --> 00:55:12,510
there as well. So there's your rules. It's very simple.
828
00:55:12,810 --> 00:55:15,120
those rules I've given you if you missed it if you weren't
829
00:55:15,120 --> 00:55:17,820
really taking those, go back and watch the video again and
830
00:55:17,820 --> 00:55:21,990
listen very carefully, because I gave you very specific
831
00:55:21,990 --> 00:55:26,310
criteria about when to move a stop, what entry price you
832
00:55:26,310 --> 00:55:30,120
would look for where your stop loss would be, and where you
833
00:55:30,120 --> 00:55:34,590
take partials. And when you graduate that stop and what you
834
00:55:34,590 --> 00:55:38,970
avoid doing when moving the stop not trying to choke the
835
00:55:38,970 --> 00:55:43,050
trade out by having a stop loss, you know, right under here,
836
00:55:43,200 --> 00:55:45,780
or right under here or because this looks like it's support.
837
00:55:45,810 --> 00:55:48,720
You know, there you go put your stop loss there. There's a
838
00:55:48,720 --> 00:55:52,920
lot of people in this period now they have cell stops right
839
00:55:52,920 --> 00:55:55,680
below here. They may have been lucky they went long here.
840
00:55:55,680 --> 00:55:58,920
Maybe they went here, or they bought here and just wrote it
841
00:55:58,920 --> 00:56:00,900
out because they only use Tough luck. But now they want to
842
00:56:00,900 --> 00:56:03,750
put a stoploss in their thinking here.
843
00:56:04,110 --> 00:56:08,070
Okay, so I use market structure to help me manage a trade
844
00:56:08,610 --> 00:56:11,490
and market structure you can learn that it's on my YouTube
845
00:56:11,490 --> 00:56:15,270
channel as well but this low here I want to put my stop at
846
00:56:15,840 --> 00:56:20,760
this low and not something ultra super tight because just
847
00:56:20,760 --> 00:56:25,560
normal gyrations okay or quick, sudden retracement lower and
848
00:56:25,560 --> 00:56:29,160
still be viable for the trade going higher would knock you
849
00:56:29,160 --> 00:56:31,890
out prematurely and you would miss the opportunity of
850
00:56:31,950 --> 00:56:35,730
allowing yourself taking out 100 pips or where the second
851
00:56:35,730 --> 00:56:37,980
standard deviation would be for your ultimate target.
852
00:56:38,370 --> 00:56:42,210
Alright. So hopefully you guys got something from this, I'll
853
00:56:42,210 --> 00:56:44,850
try to give you something every single day it will not be
854
00:56:44,850 --> 00:56:48,510
this in depth. Okay, so the rules have been applied and
855
00:56:48,540 --> 00:56:51,780
shared with you in this video. And I'll always refer back to
856
00:56:51,780 --> 00:56:55,890
this video when there's any discussion about when stops
857
00:56:55,890 --> 00:56:58,800
removed, how you take partials and what the general
858
00:56:58,800 --> 00:57:03,600
principle of this pattern is okay. It'll be a five minute or
859
00:57:03,600 --> 00:57:07,170
less many times that are probably less than four minutes
860
00:57:07,200 --> 00:57:09,330
because this is going to be me saying, okay, here's your
861
00:57:09,330 --> 00:57:13,320
chart. These are the levels. And here's what it looks like.
862
00:57:13,350 --> 00:57:15,690
It'll be just all the annotation on the chart. And it'll be
863
00:57:15,690 --> 00:57:19,440
me saying, take care. God bless and good luck good trading.
864
00:57:20,400 --> 00:57:23,460
And with that, I'm going to close this one and do that very
865
00:57:23,460 --> 00:57:25,200
thing. wish good luck and good trading.