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--|1 |00:00:11,040 ~-~-> 00:00:19,350 |ICT: Welcome back, folks, this is volume number 16 in a continuing series of 20 videos for the inner circle trader optimal trade entry pattern recognition
--|2 |00:00:19,350 ~-~-> 00:00:28,170 |series for YouTube. Alright, today's example is going to be in crude oil is a commodity market. And we're looking at the daily chart and I want give me a
--|3 |00:00:28,170 ~-~-> 00:00:41,730 |little bit of finesse on bias little additional insights, that we can see how these optimal trade entries also manifest in terms of longer term or broader
--|4 |00:00:42,180 ~-~-> 00:00:52,230 |objectives. If you look at this chart, I want you to take a look at it for a moment, pause your video, think about what you think you see in price action,
--|5 |00:00:52,290 ~-~-> 00:00:54,660 |then take a look at the annotations once I release them on screen.
--|6 |00:01:01,230 ~-~-> 00:01:13,560 |Okay, so let's take a look at what we have here. Right away, this gap in price should draw your attention. Whenever you see a price action gap in a commodity,
--|7 |00:01:14,880 ~-~-> 00:01:29,460 |or stock or Forex, or anything. If it trades, just think of this area here as a magnet. Now price has been slowly working its way towards this old high. Now
--|8 |00:01:29,460 ~-~-> 00:01:39,300 |when price went to this high here, it repelled and went lower. And I'm not going to go into the reasons why it did here. But as price is doing this, what is the
--|9 |00:01:39,300 ~-~-> 00:01:53,070 |retail trader thinking well, price stopped here before. So it's probably not going to go through that. And that is the logic behind 90% of how I decipher
--|10 |00:01:53,070 ~-~-> 00:02:04,800 |price action. I'm looking for those moments when the public or the retail trader, or as I like to call them retail Rick, they see something in price
--|11 |00:02:04,800 ~-~-> 00:02:17,490 |action that is so loosely hinged on factual, real underpinnings of the market.  And other words, I am waiting for moments where the public or retail traders
--|12 |00:02:17,640 ~-~-> 00:02:29,010 |mindset or opinion about a marketplace is so obvious based on what's taught in books and I fell victim to back in the 90s. When I first started, I will look at
--|13 |00:02:29,070 ~-~-> 00:02:40,770 |opportunities and see the opposing view to what a retail trader would see or expect in price action. So they expect this to act as resistance. So therefore,
--|14 |00:02:41,010 ~-~-> 00:02:51,720 |they don't want to be vying, they don't want to see a run above that level to attack any kind of liquidity. They're thinking, I want to short this market. And
--|15 |00:02:51,780 ~-~-> 00:03:01,860 |my stock is safe above this old high. Because look what it did in the past. It turned in never went back above it says it's been gravitating towards this old
--|16 |00:03:01,860 ~-~-> 00:03:13,950 |high the natural tendency, and I admit, back in the 90s, I was being trained to see it just like this because of all the books. And I got nearly 3000 books in
--|17 |00:03:13,950 ~-~-> 00:03:25,140 |my library. And the multitude of them are useless. They're absolutely useless. I just can't separate myself from them by discarding them because they really
--|18 |00:03:25,140 ~-~-> 00:03:35,280 |framed who I am today, because I could go back and see where I followed that failed logic. And not like I said, 99.9% of everything that's written is
--|19 |00:03:35,280 ~-~-> 00:03:45,060 |garbage. It's all things that's going to end up leading you to monetary loss, |confusion, and no real understanding about what it is you should be doing to be
--|20 |00:03:45,060 ~-~-> 00:03:59,070 |consistently profitable. This gap in price price will generally look to fill these gaps. Okay, that is a draw on liquidity. And what does that mean? There's
--|21 |00:03:59,070 ~-~-> 00:04:08,490 |going to be an interest for price to get back into between this level here and this level here, which is the low of this candle in the high of this candle. So
--|22 |00:04:08,490 ~-~-> 00:04:17,700 |there's no candle or price action trading in here. So that's what we call gap, the market will want to likely trade up into that. Now how can we use that as a
--|23 |00:04:17,700 ~-~-> 00:04:28,170 |bias or tool for bias? Well, right away, we are looking at a market that is predisposed to go higher, more likely to go higher than lower regardless of this
--|24 |00:04:28,320 ~-~-> 00:04:44,010 |so called retail traders resistance. If we go forward in the future, we would expect to see the bias be bullish. And this is Thursday's trading here may 28 of
--|25 |00:04:44,010 ~-~-> 00:04:59,370 |2020. So the expectation would be to see that high which is 3421 to be blown out. And if we can get a run further, we could see it run to 3518 which is
--|26 |00:05:00,630 ~-~-> 00:05:10,260 |This high here 3518. Now, it's not that we're looking for just to get to that level, remember what was said about this, there's orders that resting above
--|27 |00:05:10,260 ~-~-> 00:05:22,860 |that, or new orders entering, going short with their stop loss in the form of a buy stop, which builds What? Buy side liquidity. So if Smart Money investors or
--|28 |00:05:22,860 ~-~-> 00:05:34,020 |traders or people like you watching this video, see opportunities like this, and we can anticipate a run higher and you're buying low, and anticipate a run above
--|29 |00:05:34,020 ~-~-> 00:05:49,290 |that level, then we can no one, formulate a bias for the day, the next trading day, we know a time of day when we're looking to seek and discover a pattern
--|30 |00:05:49,320 ~-~-> 00:05:56,970 |that has been identified in the series as the optimal trade entry. And it's specific to time and price. So between 830 in the morning, 11 o'clock in the
--|31 |00:05:56,970 ~-~-> 00:06:10,950 |morning, we are looking for a rally higher, a sharp, rally higher, and then a pullback into that down to the 62% retracement level. That's the optimal trade
--|32 |00:06:10,950 ~-~-> 00:06:20,550 |entry. And it has to occur between 830 and 11am. If it doesn't, we don't do anything, we just wait for the next trading day or trade another pair or market.
--|33 |00:06:21,150 ~-~-> 00:06:36,660 |But this is how we can use very simple things in the daily chart to arrive at a bias. Not an everyday bias. But this is a bias model. So if we drop down into a
--|34 |00:06:36,660 ~-~-> 00:06:43,590 |five minute chart, here's your five minute chart. And again, you know the drill pause the video and take a look at what you think you see here. And then when
--|35 |00:06:43,590 ~-~-> 00:06:55,290 |you're ready, unpause the video and I'll add the annotations. Okay, so here is the annotations for the five minute chart, as I mentioned on the daily chart for
--|36 |00:06:55,290 ~-~-> 00:07:08,430 |the 28th of May, which is Thursday of 2020. The previous highs here as I mentioned 3421 price level, this line here is that old daily high or daily
--|37 |00:07:08,430 ~-~-> 00:07:25,980 |retail resistance coming in at 3518. Our time day is 8:30am to 11am. And we can see a price run here. It clears a high and we trade back down into it. Now this
--|38 |00:07:25,980 ~-~-> 00:07:37,860 |candle right there is the candle you'd be filled on it's inside of our time window, it fits the criteria. So it's this low up to this price high down. So
--|39 |00:07:37,860 ~-~-> 00:07:48,150 |it's trading back down in our hypothetical entry would be 32.75. it suffers an eight point drawdown or tick. So one point or tick in the crude oil market
--|40 |00:07:48,180 ~-~-> 00:08:00,540 |equals $10 per contract. Now they do offer a mini contract. But I'm going to show this example in light of a regular standard contract for crude oil. You're
--|41 |00:08:00,540 ~-~-> 00:08:13,140 |using point two six or 26 ticks or point stop. So that would be a $260 loss if you got stopped out and trading back just to the old high offered more than 35
--|42 |00:08:13,140 ~-~-> 00:08:28,080 |points or $350. One half a standard deviation is 75 points or ticks. Or in monetary terms, it would be hypothetical $750. Then over 1000, so $1,090 at one
--|43 |00:08:28,080 ~-~-> 00:08:38,880 |standard deviation. Now that's even before you get to the previous day's high.  One and a half standard deviations takes us to 34 point 18. And that doesn't
--|44 |00:08:38,880 ~-~-> 00:08:53,730 |quite get us above the daily high from the previous day. The next one is your two standard deviations at over 175 points. So that's $1,750 per contract. This
--|45 |00:08:53,730 ~-~-> 00:09:03,870 |is the model for taking your intraday trade. But because the logic as outlined on the daily chart supposes that we could see a run and it didn't have to happen
--|46 |00:09:03,900 ~-~-> 00:09:14,160 |on Friday. Okay, or the 29th of May, it could have happened into the following week. But if you'd leave a leader in, again, what's a leader, a leader is where
--|47 |00:09:14,160 ~-~-> 00:09:24,330 |you keep a small piece of the original trade on. Now the rules for this model is you collapse at two standard deviations. But if you have a criteria in price
--|48 |00:09:24,330 ~-~-> 00:09:34,560 |action that lends well to a likely outcome of reaching for a higher target, then at this point here, you absolutely have to have 80% off and then leave 20% one
--|49 |00:09:35,550 ~-~-> 00:09:47,010 |and you have to scale that for your own account or as close as you possibly can the majority of your trade should be closed here. And then if you capture any
--|50 |00:09:47,010 ~-~-> 00:09:59,730 |kind of continuation to run that daily level, this is what you can participate in. So offers as much as 290 points or $2,900 per contract. Now
--|51 |00:10:00,810 ~-~-> 00:10:19,710 |If you risk $260, and you walk away with $2,900, that's over 10 to one. That's enormous. Okay. So if you can see these patterns forming, and you can determine
--|52 |00:10:19,740 ~-~-> 00:10:30,000 |the likely direction, think about the power that that's given you, it tells you exactly when to train your attention in the marketplace, relative to time. So
--|53 |00:10:30,000 ~-~-> 00:10:46,200 |you can treat it like a business, you have operating hours between 8:30am and 11am, you're looking for a particular pattern to get in sync, okay, or move in a
--|54 |00:10:46,230 ~-~-> 00:10:52,770 |opposing direction to where you think the markets gonna go. And remember, we're looking for the previous day's high and maybe even a longer term high to be
--|55 |00:10:52,770 ~-~-> 00:11:02,910 |taken out. This rally up, we don't want to chase that we want to see it drop.  When it drops down in optimal trade entry. 62% retracement levels our entry
--|56 |00:11:03,510 ~-~-> 00:11:18,000 |between 830 and 11. This is our entry. And then again, with only $80 drawdown, that's the most that the trade would have hypothetically taken. So 80 bucks of
--|57 |00:11:18,000 ~-~-> 00:11:36,240 |suffering using the 62% retracement levels or entry, and then riding all the way up to 290 points. And ultimately, we still have that gap did likely trade up
--|58 |00:11:36,240 ~-~-> 00:11:43,950 |into now it doesn't mean it's going to go there on Monday doesn't mean it's going to go there Tuesday, it just means over a period of time. This is an
--|59 |00:11:43,980 ~-~-> 00:11:53,940 |upside draw on liquidity. So it's gonna act like a magnet and pull price up there, which is going to lend well for daily bias. So again, study this example.
--|60 |00:11:54,750 ~-~-> 00:12:05,190 |And you can see there's lots of things that you can mind from this particular episode. But it's just one more evidence to this model. I created in model very
--|61 |00:12:05,190 ~-~-> 00:12:12,960 |simple, very easy to understand in terms of time, you only have to determine if you're going to be looking for the previous day's high or previous day's low to
--|62 |00:12:12,960 ~-~-> 00:12:22,080 |be traded to and then you wait for this pattern. It's very simple. You have logical levels to take profits at and partials and now they included a little
--|63 |00:12:22,080 ~-~-> 00:12:32,280 |bit longer term bias idea to help frame a likely scenario that we could continuation or explosive price action move like we see here. So hopefully you
--|64 |00:12:32,280 ~-~-> 00:12:34,980 |found this insightful until next time, I wish you good luck and good trading
++1
++00:00:11,070 ~-~-> 00:00:14,040
++ICT: Welcome back, folks, this is volume number 16 in a
++2
++00:00:14,040 ~-~-> 00:00:17,550
++continuing series of 20 videos for the inner circle trader
++
++3
++00:00:17,550 ~-~-> 00:00:20,550
++optimal trade entry pattern recognition series for YouTube.
++
++4
++00:00:21,810 ~-~-> 00:00:24,270
++Alright, today's example is going to be in crude oil is a
++
++5
++00:00:24,270 ~-~-> 00:00:27,720
++commodity market. And we're looking at the daily chart and I
++
++6
++00:00:27,720 ~-~-> 00:00:32,520
++want give me a little bit of finesse on bias little
++
++7
++00:00:33,030 ~-~-> 00:00:36,420
++additional insights that we can see how these optimal trade
++
++8
++00:00:36,420 ~-~-> 00:00:41,820
++entries also manifest in terms of longer term or broader
++
++9
++00:00:42,210 ~-~-> 00:00:47,670
++objectives. If you look at this chart, I want you to take a
++
++10
++00:00:47,670 ~-~-> 00:00:50,190
++look at it for a moment pause your video think about what
++
++11
++00:00:50,190 ~-~-> 00:00:52,920
++you think you see in price action then take a look at the
++
++12
++00:00:52,920 ~-~-> 00:00:54,630
++annotations once I released them on the screen.
++
++13
++00:01:01,230 ~-~-> 00:01:05,760
++Okay, so let's take a look at what we have here. Right away,
++
++14
++00:01:06,030 ~-~-> 00:01:10,500
++this gap in price should draw your attention. Whenever you
++
++15
++00:01:10,500 ~-~-> 00:01:18,000
++see a price action gap in a commodity, or stock or Forex, or
++
++16
++00:01:18,000 ~-~-> 00:01:22,530
++anything. If it trades, just think of this area here as a
++
++17
++00:01:22,530 ~-~-> 00:01:27,330
++magnet. Now price has been slowly working its way towards
++
++18
++00:01:27,600 ~-~-> 00:01:31,680
++this old high. Now when price went to this high here, it
++
++19
++00:01:31,680 ~-~-> 00:01:33,930
++repelled and went lower. And I'm not going to go into the
++
++20
++00:01:33,930 ~-~-> 00:01:39,150
++reasons why it did here. But as prices doing this, what is
++
++21
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++the retail trader thinking well, price stopped here before,
++
++22
++00:01:43,200 ~-~-> 00:01:46,650
++so it's probably not going to go through that. And that is
++
++23
++00:01:46,680 ~-~-> 00:01:54,540
++the logic behind 90% of how I decipher price action. I'm
++
++24
++00:01:54,540 ~-~-> 00:01:58,110
++looking for those moments when the public or the retail
++
++25
++00:01:58,110 ~-~-> 00:02:03,930
++trader or as I like to dub them Retail Rick, they see
++
++26
++00:02:03,930 ~-~-> 00:02:08,520
++something in price action that is so loosely hinged on
++
++27
++00:02:08,640 ~-~-> 00:02:14,130
++factual, real underpinnings of the market. In other words, I
++
++28
++00:02:14,130 ~-~-> 00:02:17,490
++am waiting for moments where the public or retail traders
++
++29
++00:02:17,640 ~-~-> 00:02:22,920
++mindset or opinion about marketplace is so obvious based on
++
++30
++00:02:22,920 ~-~-> 00:02:25,620
++what's taught in books and I fell victim to back in the 90s.
++
++31
++00:02:25,620 ~-~-> 00:02:30,660
++When I first started, I will look at opportunities and see
++
++32
++00:02:31,140 ~-~-> 00:02:35,190
++the opposing view to what a retail trader would see or
++
++33
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++expect in price action. So they expect this to act as
++
++34
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++resistance. So therefore, they don't want to be vying, they
++
++35
++00:02:43,290 ~-~-> 00:02:46,830
++don't want to see a run above that level to attack any kind
++
++36
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++of liquidity. They're thinking, I want to short this market
++
++37
++00:02:51,270 ~-~-> 00:02:54,990
++and my stock is safe above this old high because look what
++
++38
++00:02:54,990 ~-~-> 00:02:58,740
++it did in the past. It turned in never went back above it.
++
++39
++00:02:58,800 ~-~-> 00:03:03,690
++So as it's been gravitating towards this old high, the
++
++40
++00:03:03,720 ~-~-> 00:03:08,040
++natural tendency. And I admit, back in the 90s, I was being
++
++41
++00:03:08,040 ~-~-> 00:03:11,520
++trained to see it just like this because of all the books,
++
++42
++00:03:12,090 ~-~-> 00:03:16,740
++and I got nearly 3000 books in my library, and the multitude
++
++43
++00:03:16,770 ~-~-> 00:03:19,920
++of them are useless. They're absolutely useless. I just
++
++44
++00:03:19,920 ~-~-> 00:03:22,440
++can't separate myself from them by discarding them because
++
++45
++00:03:22,710 ~-~-> 00:03:27,540
++they really framed who I am today, because I could go back
++
++46
++00:03:27,540 ~-~-> 00:03:32,130
++and see where I followed that failed logic. And like I said,
++
++47
++00:03:32,130 ~-~-> 00:03:36,510
++99.9% of everything that's written is garbage. It's all
++
++48
++00:03:36,510 ~-~-> 00:03:39,900
++things that's going to end up leading you to monetary loss,
++
++49
++00:03:40,380 ~-~-> 00:03:44,040
++confusion, and no real understanding about what it is you
++
++50
++00:03:44,040 ~-~-> 00:03:49,170
++should be doing to be consistently profitable. This gap and
++
++51
++00:03:49,170 ~-~-> 00:03:54,330
++price price will generally look to fill these gaps. Okay,
++
++52
++00:03:54,510 ~-~-> 00:03:58,170
++that is a draw on liquidity. And what does that mean?
++
++53
++00:03:58,830 ~-~-> 00:04:01,500
++There's going to be an interesting For price to get back up
++
++54
++00:04:01,530 ~-~-> 00:04:05,190
++into between this level here and this level here, which is
++
++55
++00:04:05,580 ~-~-> 00:04:08,490
++the low of this candle and the high of this candle, so
++
++56
++00:04:08,490 ~-~-> 00:04:11,310
++there's no candle or price action trading in here. So that's
++
++57
++00:04:11,310 ~-~-> 00:04:15,180
++what we call gap, the market will want to likely trade up
++
++58
++00:04:15,180 ~-~-> 00:04:18,930
++into that. Now how can we use that as a bias or tool for
++
++59
++00:04:18,930 ~-~-> 00:04:22,830
++bias, but right away, we are looking at a market that is
++
++60
++00:04:22,860 ~-~-> 00:04:26,190
++predisposed to go higher, more likely to go higher then
++
++61
++00:04:26,190 ~-~-> 00:04:30,330
++lower, regardless of this so called retail traders
++
++62
++00:04:30,330 ~-~-> 00:04:37,620
++resistance. If we go forward in the future, we would expect
++
++63
++00:04:37,620 ~-~-> 00:04:41,520
++to see the bias be bullish. And this is Thursdays trading
++
++64
++00:04:41,520 ~-~-> 00:04:48,030
++here. May 28 of 2020. So the expectation would be to see
++
++65
++00:04:48,030 ~-~-> 00:04:54,240
++that high which is 3421 to be blown out. And if we can get a
++
++66
++00:04:54,240 ~-~-> 00:04:59,340
++run further, we could see it run to 3518 which is
++
++67
++00:05:00,630 ~-~-> 00:05:04,530
++This high here 3518. Now, it's not that we're looking for
++
++68
++00:05:04,530 ~-~-> 00:05:07,380
++just to get to that level, remember what was said about
++
++69
++00:05:07,380 ~-~-> 00:05:11,760
++this. There's orders that's resting above that, or new
++
++70
++00:05:11,940 ~-~-> 00:05:16,020
++orders entering, going short with our stop loss in the form
++
++71
++00:05:16,020 ~-~-> 00:05:21,210
++of a buy stop, which builds What? Buy side liquidity. So if
++
++72
++00:05:21,210 ~-~-> 00:05:24,270
++Smart Money investors or traders or people like you watching
++
++73
++00:05:24,270 ~-~-> 00:05:27,630
++this video, see opportunities like this, and we can
++
++74
++00:05:27,660 ~-~-> 00:05:32,880
++anticipate a run higher and you're buying low, and
++
++75
++00:05:32,880 ~-~-> 00:05:37,950
++anticipate a run above that level, then we can no one,
++
++76
++00:05:38,790 ~-~-> 00:05:42,930
++formulate a bias for the day, the next trading day. We know
++
++77
++00:05:42,930 ~-~-> 00:05:48,750
++a time of day when we're looking to seek and discover a
++
++78
++00:05:48,750 ~-~-> 00:05:51,180
++pattern that has been identified in the series as the
++
++79
++00:05:51,180 ~-~-> 00:05:55,290
++optimal trade entry. And it's specific to time and price. So
++
++80
++00:05:55,290 ~-~-> 00:05:58,200
++between 830 in the morning, 11 o'clock in the morning, we're
++
++81
++00:05:58,200 ~-~-> 00:06:04,830
++looking for a rally higher, a sharp, rally higher, and then
++
++82
++00:06:04,890 ~-~-> 00:06:08,610
++a pullback into that down to the 62% retracement level.
++
++83
++00:06:09,900 ~-~-> 00:06:12,360
++That's the optimal trade entry. And it has to occur between
++
++84
++00:06:12,390 ~-~-> 00:06:16,740
++830 and 11am. If it doesn't, we don't do anything, we just
++
++85
++00:06:16,770 ~-~-> 00:06:19,890
++wait for the next trading day or trade another pair or
++
++86
++00:06:19,920 ~-~-> 00:06:25,380
++market. But this is how we can use very simple things in the
++
++87
++00:06:25,380 ~-~-> 00:06:31,590
++daily chart to arrive at a bias. Not an everyday bias. But
++
++88
++00:06:31,800 ~-~-> 00:06:37,200
++this is a bias model. So if we drop down into a five minute
++
++89
++00:06:37,200 ~-~-> 00:06:39,150
++chart, here's your five minute chart and again you know the
++
++90
++00:06:39,150 ~-~-> 00:06:42,240
++drill pause the video and take a look at what you think you
++
++91
++00:06:42,240 ~-~-> 00:06:44,910
++see here. And then when you're ready, unpause the video and
++
++92
++00:06:44,910 ~-~-> 00:06:51,480
++I'll add the annotations. Okay, so here is the annotations
++
++93
++00:06:51,480 ~-~-> 00:06:54,330
++for the five minute chart as I mentioned on the daily chart
++
++94
++00:06:54,930 ~-~-> 00:07:00,600
++for the 28th of May, which is Thursday of 2020 The previous
++
++95
++00:07:00,600 ~-~-> 00:07:04,380
++highs here as I mentioned, the 3421 price level, this line
++
++96
++00:07:04,380 ~-~-> 00:07:09,510
++here is that old daily high or daily retail resistance
++
++97
++00:07:09,900 ~-~-> 00:07:18,990
++coming in at 3518. Our time day is 8:30am to 11am. And we
++
++98
++00:07:18,990 ~-~-> 00:07:24,720
++can see a price run here. It clears a high and we trade back
++
++99
++00:07:24,720 ~-~-> 00:07:28,740
++down into it. Now this candle right there is the candle
++
++100
++00:07:28,740 ~-~-> 00:07:32,250
++you'd be filled on. It's inside of our time window. It fits
++
++101
++00:07:32,250 ~-~-> 00:07:36,840
++the criteria, so it's this low up to this price high down.
++
++102
++00:07:37,590 ~-~-> 00:07:40,590
++So it's trading back down in our hypothetical entry would be
++
++103
++00:07:40,590 ~-~-> 00:07:45,900
++32.75. it suffers an eight point drawdown or tick so one
++
++104
++00:07:45,900 ~-~-> 00:07:49,230
++point or tick in the crude oil market equals $10 per
++
++105
++00:07:49,230 ~-~-> 00:07:53,310
++contract. Now they do offer a mini contract, but I'm going
++
++106
++00:07:53,310 ~-~-> 00:07:57,960
++to show this example in light of a regular standard contract
++
++107
++00:07:57,960 ~-~-> 00:08:04,170
++for crude oil. You're using point two six or 26 ticks or
++
++108
++00:08:04,170 ~-~-> 00:08:08,730
++point stop. So that would be a $260 loss if you got stopped
++
++109
++00:08:08,730 ~-~-> 00:08:12,600
++out, and trading back just to the old high offered more than
++
++110
++00:08:12,600 ~-~-> 00:08:18,510
++35 points or $350. One half standard deviation is 75 points
++
++111
++00:08:18,510 ~-~-> 00:08:21,630
++or ticks or in monetary terms, it would be hypothetical
++
++112
++00:08:21,630 ~-~-> 00:08:29,010
++$750. Then over 1000 to $1,090 at one standard deviation.
++
++113
++00:08:29,280 ~-~-> 00:08:31,980
++Now that's even before you get to the previous day's high
++
++114
++00:08:33,570 ~-~-> 00:08:37,620
++one and a half standard deviations takes us to 34 point 18.
++
++115
++00:08:37,980 ~-~-> 00:08:41,790
++And that doesn't quite get us above the daily high from the
++
++116
++00:08:41,790 ~-~-> 00:08:45,720
++previous day. The next one is your two standard deviations
++
++117
++00:08:45,990 ~-~-> 00:08:51,750
++at over 175 points, so that's $1,750 per contract.
++
++118
++00:08:53,220 ~-~-> 00:08:56,700
++This is the model for taking your intraday trade but because
++
++119
++00:08:56,730 ~-~-> 00:09:01,530
++the logic as outlined on the daily chart Suppose that we
++
++120
++00:09:01,530 ~-~-> 00:09:05,310
++could see a run and didn't have to happen on Friday. Okay,
++
++121
++00:09:05,340 ~-~-> 00:09:08,640
++or the 29th of May, it could have happened into the
++
++122
++00:09:08,640 ~-~-> 00:09:12,180
++following week. But if you'd leave a leader in Now, again,
++
++123
++00:09:12,180 ~-~-> 00:09:15,450
++what's a leader, a leader is where you keep a small piece of
++
++124
++00:09:15,450 ~-~-> 00:09:18,600
++the original trade on. Now, the rules for this model is you
++
++125
++00:09:18,600 ~-~-> 00:09:22,950
++collapse at two standard deviations. But if you have a
++
++126
++00:09:23,250 ~-~-> 00:09:27,570
++criteria in price action that lends well to a likely outcome
++
++127
++00:09:27,870 ~-~-> 00:09:30,900
++of reaching for a higher target, then at this point here,
++
++128
++00:09:30,900 ~-~-> 00:09:34,530
++you absolutely have to have 80% off and then leave 20% on
++
++129
++00:09:35,550 ~-~-> 00:09:41,670
++and you have to scale that for your own account or as close
++
++130
++00:09:41,670 ~-~-> 00:09:44,160
++as you possibly can, the majority of your trade should be
++
++131
++00:09:44,160 ~-~-> 00:09:47,340
++closed here. And then if you capture any kind of
++
++132
++00:09:47,370 ~-~-> 00:09:50,940
++continuation to run that daily level, this is what you can
++
++133
++00:09:50,940 ~-~-> 00:09:57,720
++participate in. So offers as much as 290 points or $2,900
++
++134
++00:09:57,750 ~-~-> 00:10:05,460
++per contract. Now If you risk $260, and you walk away with
++
++135
++00:10:05,910 ~-~-> 00:10:15,960
++$2,900, that's over 10 to one. That's enormous. Okay? So if
++
++136
++00:10:15,960 ~-~-> 00:10:19,710
++you can see these patterns forming, and you can determine
++
++137
++00:10:19,740 ~-~-> 00:10:23,460
++the likely direction, think about the power that that's
++
++138
++00:10:23,490 ~-~-> 00:10:27,330
++given you. It tells you exactly when to train your attention
++
++139
++00:10:27,330 ~-~-> 00:10:30,570
++in the marketplace, relative to time. So you can treat it
++
++140
++00:10:30,570 ~-~-> 00:10:34,140
++like a business, you have operating hours between 8:30am and
++
++141
++00:10:34,140 ~-~-> 00:10:41,040
++11am. You're looking for a particular pattern to get in
++
++142
++00:10:41,040 ~-~-> 00:10:47,610
++sync, okay, or move in a opposing direction to where you
++
++143
++00:10:47,610 ~-~-> 00:10:49,980
++think the markets gonna go. Remember, we're looking for the
++
++144
++00:10:49,980 ~-~-> 00:10:52,740
++previous day's high and maybe even a longer term high to be
++
++145
++00:10:52,740 ~-~-> 00:10:56,370
++taken out. This rally up we don't want to chase that we want
++
++146
++00:10:56,370 ~-~-> 00:11:00,000
++to see it drop when it drops down in optimal trade entry.
++
++147
++00:11:01,080 ~-~-> 00:11:06,180
++62% retracement levels our entry between 830 and 11. This is
++
++148
++00:11:06,180 ~-~-> 00:11:11,580
++our entry. And then again with only $80 draw down, that's
++
++149
++00:11:11,580 ~-~-> 00:11:16,320
++the most to trade would have hypothetically taken. So 80
++
++150
++00:11:16,320 ~-~-> 00:11:20,550
++bucks of suffering using the 62% retracement levels or
++
++151
++00:11:20,550 ~-~-> 00:11:27,000
++entry, and then riding all the way up to 290 points. And
++
++152
++00:11:27,030 ~-~-> 00:11:36,660
++ultimately, we still have that gap did likely trade up into
++
++153
++00:11:37,020 ~-~-> 00:11:38,820
++now it doesn't mean it's going to go there on Monday doesn't
++
++154
++00:11:38,820 ~-~-> 00:11:41,400
++mean it's going to go there Tuesday. It just means over a
++
++155
++00:11:41,400 ~-~-> 00:11:46,680
++period of time. This is an upside draw on liquidity. So it's
++
++156
++00:11:46,680 ~-~-> 00:11:49,890
++gonna act like a magnet and pull price up there, which is
++
++157
++00:11:49,890 ~-~-> 00:11:53,280
++going to lend well for daily bias. So again, study this
++
++158
++00:11:53,280 ~-~-> 00:11:57,000
++example. And you can see there's lots of things that you can
++
++159
++00:11:57,000 ~-~-> 00:12:01,170
++mind from this particular episode but It's just one more
++
++160
++00:12:01,170 ~-~-> 00:12:06,570
++evidence to this model, I created a model very simple, very
++
++161
++00:12:07,470 ~-~-> 00:12:10,050
++easy to understand in terms of time, you only have to
++
++162
++00:12:10,050 ~-~-> 00:12:11,730
++determine if you're going to be looking for the previous
++
++163
++00:12:11,730 ~-~-> 00:12:14,430
++day's high or previous day's low to be traded to. And then
++
++164
++00:12:14,430 ~-~-> 00:12:18,090
++you wait for this pattern. It's very simple. You have
++
++165
++00:12:18,090 ~-~-> 00:12:21,270
++logical levels to take profits at and partials and now they
++
++166
++00:12:21,270 ~-~-> 00:12:25,920
++included a little bit longer term bias idea to help frame a
++
++167
++00:12:26,190 ~-~-> 00:12:29,850
++likely scenario that we could continuation or explosive
++
++168
++00:12:29,850 ~-~-> 00:12:32,490
++price action move like we see here. So hopefully you found
++
++169
++00:12:32,490 ~-~-> 00:12:34,470
++this insightful until next time, I wish you good luck and
++
++170
++00:12:34,470 ~-~-> 00:12:34,950
++good trading.

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