2022 ICT Mentorship Episode 3
Summary
TLDRNa clase de mentoría ICT do 25 de xaneiro de 2022, discutíronse conceptos fundamentais de estrutura de mercado e liquidez interna. O mentor explica técnicas para identificar cambios de estrutura de mercado observando patróns no gráfico de prezos, especificamente no contexto dos futuros e-mini Nasdaq 100. Suxírese que os espectadores revisen o gráfico compartido anteriormente para procurar sinais de cambios de estrutura e liquidez de compra e venda. Instrúe sobre como recoñecer estes cambios sen forzamentos innecesarios, e fai fincapé na importancia da revisión constante e a documentación a través dun xornal de estudo para reforzar o entendemento. A clase tamén corrixe concepcións erróneas e proporciona claridades adicionais sobre o uso de "order blocks" nas estratexias de negociación.
Takeaways
- 📊 Identificar a liquidez de rango interno e cambios de estrutura de mercado.
- 📈 Empregar gráficos de 1 a 3 minutos para observar estrutura de algoritmos.
- 📚 Importancia de documentar o proceso nun xornal de estudo.
- 🔍 Non forzar, esperar evidencias claras de cambios de estrutura.
- ⚙️ Coñecer a función dos 'order blocks' como cambio no estado de entrega.
- 🕵️♂️ Analizar gráficos limpos para interpretación flexible do mercado.
- ✍️ Asignación de tarefa para practicar identificación de stop hunts.
- 🛑 A 'swing high' e a toma de liquidez como sinais clave.
- 🔧 Empregar o termo 'shift' para cambios intradía non prolongados.
- 💡 Conceptos desmitificados para ensinar correctamente aos aprendices.
Timeline
- 00:00:00 - 00:05:00
Benvida todos, no mentorship ICT do 25 de xaneiro de 2022, onde se discutirá a estrutura interna de liquidez e cambio de mercado. Débese revisar un gráfico enviado a través da pestana "comunidade" para identificar cambios na estrutura de mercado e a liquidez de compra e venda, deténdose nesta área para avaliar estas oportunidades.
- 00:05:00 - 00:10:00
No gráfico de 15 minutos do Nasdaq 100 e-mini, obsérvanse altos iguais e baixos antigos que suxiren stops de venda e compra. Esta información é crucial para identificar cambios na estrutura do mercado sen forzalo, xa que non necesariamente levan a movementos prolongados. Un "cambio" indica unha posible caída ou alza intradía.
- 00:10:00 - 00:15:00
Para detectar cambios na estrutura do mercado, é esencial buscar probas, non simplemente seguir conceptos. Centrámonos en identificar o que son "quebras" de estrutura en día, diferenciándoo de "cambios", e procurar oportunidades utilizando datos de algoritmos de alta frecuencia que se moven máis aló dos marcos temporais menores.
- 00:15:00 - 00:20:00
Obsérvase significantemente cando un máximo a curto prazo é superado despois de que o mercado trocese por stops de venda. Isto indica que os algoritmos alta frecuencia actúan nesas circunstancias atopando stops de vendedores e logrando comprender mellor o concepto de acción do prezo máis alá dos convencionalismos.
- 00:20:00 - 00:25:00
Os algoritmos de alta frecuencia identifican cambios significativos cando ocorre unha violación dos altos a curto prazo, sendo isto importante na medida en que existan stops de venda ou venda a curtas superados polo mercado.
- 00:25:00 - 00:30:00
Unha serie de velas pechadas á baixa que coinciden con stops de venda conforman un único "orde de bloqueio"; seguindo estas pistas, unha orde de compra cunha orde límite permite aproveitar os movementos de subida do mercado.
- 00:30:00 - 00:35:00
Detalle sobre a ejecución dun plan de trades, mostrando como varias operacións de compra e venda foron xestionadas en relación cos niveis de stops identificados, proporcionando un exemplo de trades manualmente seguidos na plataforma utilizada.
- 00:35:00 - 00:40:00
Ensinanza adicional sobre a operativa de xestión de trades, destacando o uso de gaps de valor xusto e bloques de orde no grafico, advertindo contra as interpretacións incorrectas que poden crear confusión entre os estudantes do mercado.
- 00:40:00 - 00:45:00
Esquema de modo de visualización do mercado sen distraccións superfluas para permitir a fluídez mental ao avaliar o comportamento dos prezos. Ademais, proporciónase un marco temporal de especificacións para identificar altos e baixos para sesións de Londres, Nova York e Asia.
- 00:45:00 - 00:52:27
Explicación do traballo de "back-testing" recomendando probar os patróns de liquidez e cambios estruturais en gráficos pasados, reflectindo sobre os exemplos para internalizar este coñecemento a través da experiencia repetida.
Mind Map
Video Q&A
Que significa o termo "cambio de estrutura de mercado" neste contexto?
Refírese a un cambio na dirección esperada do mercado despois de alcanzar liquidez nos lados de compra ou venda.
Que se debe facer antes de continuar con este vídeo?
Debe parar o vídeo e revisar o gráfico proporcionado na ligazón compartida anteriormente para identificar cambios de estrutura de mercado e puntos de liquidez.
Que tipos de gráficos son recomendados para observar estructuras de mercado a través de algoritmos de alta frecuencia?
Recoméndase utilizar gráficos de 3 minutos, 2 minutos e 1 minuto, e incluso sub-un minuto como 45 segundos, 30 segundos ou 15 segundos.
Por qué é importante comprender os 'order blocks'?
Os 'order blocks' indican un cambio no estado de entrega de prezos, proporcionando unha referencia de prezo para anticipar a continuación ou reviravolta no mercado.
Como contribúen as falsas rupturas de mercado ao proceso de aprendizaxe?
Unha falsa ruptura indica un posible cambio de estrutura, mostrando onde o mercado pode ter suficientes puntos de liquidez para reverter.
Como pode usarse unha fenda de valor xusto nun contexto intradía?
Pode actuar como un punto de entrada despois de observar un cambio de estrutura de mercado, anticipando un retorno ao desequilibrio antes de continuar a tendencia esperada.
Que se debe evitar cando se intenta identificar cambios de estrutura de mercado?
Non se debe forzar o cambio de estrutura, senón esperar a que o mercado demostre evidencias claras dun cambio antes de actuar.
Por qué os niveles de apertura dos 'order blocks' son significativos?
Indicadores críticos de entrega de prezos onde o mercado cambia a súa dirección de venda ou compra despois de cruzalos.
Cal é a importancia de ter un xornal de estudo segundo o mentor?
Axuda a revisar e reforzar os conceptos aprendidos durante momentos de confusión ou baixa eficiencia no mercado.
Que papel xogan os gráficos limpos sen anotacións durante a negociación?
Permiten ao mentor flexibilizar a súa interpretación do mercado sen prexuízos inducidos por anotacións que poden restrinxir a análise.
View more video summaries
2022 ICT Mentorship Episode 2
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- 00:00:17all right folks welcome back
- 00:00:19all right so this is the tuesday january
- 00:00:2125th 2022
- 00:00:23ict mentorship on the youtube channel
- 00:00:26all right so
- 00:00:28this is the internal range liquidity and
- 00:00:30market structure shift lecture
- 00:00:35all right so i gave you homework on the
- 00:00:37community tab if you have not been
- 00:00:39paying attention to that that's where
- 00:00:40i'm kind of keeping you abreast as to
- 00:00:43what you should be expecting next or
- 00:00:45something that just comes to mind that i
- 00:00:46feel like sharing so this is the link i
- 00:00:48sent out the other day
- 00:00:50and i wanted you to go through
- 00:00:52this particular chart
- 00:00:54and look for reasons that provided the
- 00:00:56market structure shift and the buy side
- 00:00:59and sell side liquidity
- 00:01:02so if you have not done that please stop
- 00:01:04the video
- 00:01:05and do that now otherwise you're
- 00:01:06cheating yourself of learning
- 00:01:07opportunity
- 00:01:11all right so here is that chart
- 00:01:14again 15 minute time frame on the e-mini
- 00:01:17nasdaq 100 futures contract for march
- 00:01:19delivery 2022.
- 00:01:22and take your attention over here
- 00:01:24okay this old low
- 00:01:30and these relative equal highs see that
- 00:01:33old low below that is cell stops
- 00:01:37and relative equal highs above that is
- 00:01:39buy stops
- 00:01:40now you could have used this high here
- 00:01:42there's nothing inherently wrong about
- 00:01:43that but whenever i see
- 00:01:45equal highs like this might and if it's
- 00:01:47higher than an old high over here i'm
- 00:01:49going to use that so that way there's a
- 00:01:50little bit of insight for you for your
- 00:01:52study journal
- 00:01:55the sell side liquidity
- 00:01:57you can see that the market trades down
- 00:01:58hits that runs through it
- 00:02:01then rallies all the way back up
- 00:02:03clearing equal highs
- 00:02:05so the buy stops have been taken here
- 00:02:07okay so at both of these price points
- 00:02:10here
- 00:02:11and here
- 00:02:12that's the
- 00:02:15i guess the point at which you'll look
- 00:02:18for or anticipate a market structure
- 00:02:20shift
- 00:02:21you don't force it okay i see a lot of
- 00:02:23people try to teach my concepts it'll
- 00:02:25talk about market structure breaks or
- 00:02:27shifts and we'll use that term
- 00:02:28interchangeably
- 00:02:30but
- 00:02:31for
- 00:02:33intraday i want you to think about
- 00:02:34intraday market structure shifts because
- 00:02:37it's not necessarily a
- 00:02:39break in market structure that leads to
- 00:02:41prolonged
- 00:02:43multi-day
- 00:02:45movement okay
- 00:02:47what do i mean by that
- 00:02:49if you see a market structure that's
- 00:02:51bearish
- 00:02:52and it's broken to the downside
- 00:02:55intraday that may just lead to an
- 00:02:57intraday price leg that may eventually
- 00:03:00see that high be taken out in the same
- 00:03:03day so that's why i'm using the term
- 00:03:05market structure shift
- 00:03:07not market structure break
- 00:03:10for our conversation here on this
- 00:03:11mentorship just know that when i'm
- 00:03:14gonna lean on that term market structure
- 00:03:16break
- 00:03:17it means a little bit more in context
- 00:03:19versus an intraday shift in market
- 00:03:22structure just means that there's likely
- 00:03:24a downside
- 00:03:26draw
- 00:03:27or an upside draw intraday by saying the
- 00:03:29term shift okay so there's a little bit
- 00:03:31of semantics there
- 00:03:33all right so we have
- 00:03:34both of these areas
- 00:03:36here
- 00:03:38and here where there would be a
- 00:03:40likelihood of a market structure shift
- 00:03:43up here we look for a fake run above
- 00:03:46here
- 00:03:47so that fake run above how do we know
- 00:03:49it's going to be a market structure
- 00:03:50shift that's bearish
- 00:03:52i get that question a lot even from
- 00:03:53mentorship students
- 00:03:56what you're looking for is the evidence
- 00:03:57i'm going to show you here tonight okay
- 00:03:59forget everything else everybody else
- 00:04:01says about market structure breaks and
- 00:04:02shifts and all that stuff
- 00:04:04this is it okay this is the brass tacks
- 00:04:06there's absolutely nothing else that you
- 00:04:08need to know about it i promise you if
- 00:04:11they add anything to it it's just
- 00:04:12because they want to sound and look
- 00:04:14different but this is the algorithmic
- 00:04:16perspective of a market structure shift
- 00:04:18in today
- 00:04:21now keep
- 00:04:22this price level in mind so it's
- 00:04:24essentially fourteen thousand six
- 00:04:25hundred
- 00:04:26and fourteen thousand eight twenty we're
- 00:04:28just eyeballing it okay
- 00:04:32now dropping all the way down into a two
- 00:04:34minute chart
- 00:04:36this is that same particular day
- 00:04:39here's those relative equal highs
- 00:04:42and
- 00:04:43this run down here
- 00:04:45okay
- 00:04:48if you recall
- 00:04:5114 6
- 00:04:54and around that 14 860 or so okay
- 00:05:00if you look at this
- 00:05:01market structure
- 00:05:04without having the levels on your chart
- 00:05:06it's easy to get lost
- 00:05:08in all the quote unquote noise the
- 00:05:10uninitiated and i know it's going to
- 00:05:13razz the people that don't care to
- 00:05:14really learn here
- 00:05:16but the uninitiated folks that will
- 00:05:18watch a video or listen to some of the
- 00:05:20lectures i'll put out
- 00:05:22they're trying to bring something in
- 00:05:24they're trying to bring in their
- 00:05:25preconceived notions and ideas about
- 00:05:27what they think they understand about
- 00:05:29markets or technical analysis or
- 00:05:31something
- 00:05:32in price action
- 00:05:33and i want to kind of like
- 00:05:36allow you to just put that aside for a
- 00:05:38moment and just imagine
- 00:05:40this chart
- 00:05:42is the first time you looked at price
- 00:05:43action for the first time and that's
- 00:05:45hard but kind of like strip away
- 00:05:46everything else that you want to
- 00:05:48bring to the conversation no order block
- 00:05:51discussion no breaker no none of that
- 00:05:53stuff okay supply and demand elliott
- 00:05:55wave all that garbage if you look at
- 00:05:57this price action here
- 00:05:59when we had this low form
- 00:06:03right before this low was formed there's
- 00:06:06a swing high right there
- 00:06:09now in the first mentorship video i gave
- 00:06:12you i mentioned that
- 00:06:14high frequency trading algorithms
- 00:06:17will use
- 00:06:18market structure on a three minute two
- 00:06:19minute and one minute chart many times
- 00:06:22sub one minute that would be like
- 00:06:2545 second
- 00:06:2630 second 15 second intervals
- 00:06:29okay
- 00:06:31what the algorithms are actually doing
- 00:06:34and
- 00:06:35this is also going to correct a lot of
- 00:06:36people out there because they put out
- 00:06:39misinformation it's so nonsensical but
- 00:06:42i'm challenging you to go into your
- 00:06:44charts and see if this is not what's
- 00:06:45actually going on because it happens
- 00:06:47every day if high frequency algorithms
- 00:06:49are operating every single day then
- 00:06:51these signatures will be in the chart
- 00:06:54okay
- 00:06:56if you look at this short term high here
- 00:06:59right before this low formed
- 00:07:01when this
- 00:07:02high is taken out right there on that
- 00:07:04candle
- 00:07:05that's significant
- 00:07:07only
- 00:07:08only
- 00:07:09if this run down here
- 00:07:12has traded into
- 00:07:14sell stops
- 00:07:16okay below an old love some kind it
- 00:07:18could be a
- 00:07:19a double bottom it could be a single low
- 00:07:21okay but it's got to be trading under
- 00:07:24some
- 00:07:26retail idea that would be viewed as
- 00:07:28support
- 00:07:31up here the same thing
- 00:07:33we're trading above
- 00:07:35highs
- 00:07:36so we know that above old highs
- 00:07:40a neophyte perspective will be
- 00:07:43these are unknown orders so therefore
- 00:07:45that's a flawed perspective on price
- 00:07:47action how do you know there's liquidity
- 00:07:48up there how do you know there's buy
- 00:07:50stops up there it's just logic
- 00:07:51it's simple look at the chart
- 00:07:53everybody's trying to do something based
- 00:07:56on some kind of
- 00:07:57theory logic whatever some system
- 00:08:01there's buyers and sellers coming in at
- 00:08:03all times
- 00:08:05their buying and selling quote unquote
- 00:08:07strength or pressure has absolutely no
- 00:08:10bearing
- 00:08:11on where these prices are going to go
- 00:08:13i know that
- 00:08:15may shake individuals that think they
- 00:08:17know something about the markets oh i
- 00:08:18have an uncle that used to be on the
- 00:08:20floor of the chicago board of trade and
- 00:08:21blah blah blah the mercantile exchange
- 00:08:23guys say this i don't care okay i don't
- 00:08:26care what any of those folks say because
- 00:08:28they didn't design the algorithm
- 00:08:31so
- 00:08:33again
- 00:08:34put all those
- 00:08:35you know talking points and everybody
- 00:08:37else's opinion you've adopted because
- 00:08:39you probably heard someone else talk
- 00:08:40about it
- 00:08:41and you subscribe to the review because
- 00:08:43it's easier just to do that instead of
- 00:08:44going and looking at it for yourself and
- 00:08:46that's what i'm asking you to do
- 00:08:48i'm telling you this is my personal
- 00:08:51belief
- 00:08:53you're going to see proof of these
- 00:08:55things
- 00:08:56in a live account execution
- 00:08:58but i want you to see the logic behind
- 00:09:00it because if you can see this
- 00:09:02you'll be light years ahead of everyone
- 00:09:04else
- 00:09:05and you'll laugh
- 00:09:06in the face of all these people that are
- 00:09:08going to tell you you're wasting your
- 00:09:09time trying to learn this i promise you
- 00:09:12this lesson is going to change a lot for
- 00:09:14you
- 00:09:17when this
- 00:09:18run above these relative equal highs
- 00:09:20happens right there you're anticipating
- 00:09:24a market structure shift you're not
- 00:09:26forcing it
- 00:09:27you're not trying to get ahead of it
- 00:09:30okay i don't think any of you are going
- 00:09:32to have the skill set to do that there
- 00:09:34are ways to know when to sell short
- 00:09:35right above that not even wait for the
- 00:09:37shift in market structure
- 00:09:39just like there's ways to know to be a
- 00:09:41buyer down here without seeing that
- 00:09:43short term high broken
- 00:09:45then looking for a buy
- 00:09:48over here the opposite see this swing
- 00:09:50low
- 00:09:52let me go back to this for a second
- 00:09:54we have this high
- 00:09:56on this candle then we have the candle
- 00:09:58right after that here the highest one
- 00:10:00and then the lower
- 00:10:01high of this candle here so that's a
- 00:10:03swing high
- 00:10:04very simple little pattern but it means
- 00:10:07a lot when it's in the proper context
- 00:10:10when this high is broken with this
- 00:10:13particular candle right there that is
- 00:10:15significant only on the basis that we
- 00:10:17have taken liquidity out of the
- 00:10:18marketplace
- 00:10:20that's it
- 00:10:21so when it broke this short term high
- 00:10:23this is more meaningful
- 00:10:25and then the market will start to seek
- 00:10:28buy stops
- 00:10:29okay or buy side liquidity that would
- 00:10:32rest above here
- 00:10:34here
- 00:10:35and here now i shared an example of live
- 00:10:38executions and i was teaching on the
- 00:10:39idea of
- 00:10:41utilizing micros which are essentially
- 00:10:44two dollars per handle okay
- 00:10:47so or 50 cents per tick
- 00:10:50this chart is nasdaq e-mini this would
- 00:10:53represent twenty dollars
- 00:10:55per handle and there's four ticks in
- 00:10:57each handle there's your twenty dollars
- 00:10:59per handle okay so again what that means
- 00:11:01is fourteen six eighty to fourteen six
- 00:11:04eighty one that's one handle or four
- 00:11:06ticks
- 00:11:09there are some
- 00:11:11that will doubt the idea that you can
- 00:11:13trade all these little
- 00:11:14internal
- 00:11:16swings
- 00:11:17okay and i'm going to give you some
- 00:11:18insights on
- 00:11:19how i was doing it okay the main
- 00:11:22context of this lesson is for you to go
- 00:11:25in
- 00:11:26to your charts and try to prove me wrong
- 00:11:31okay
- 00:11:32that's the challenge here that's your
- 00:11:33homework i want you
- 00:11:35to learn what i'm doing in this lesson
- 00:11:37here
- 00:11:38and then you go into your charts back
- 00:11:40testing and i'll show you what that
- 00:11:41looks like what does it mean to be back
- 00:11:42testing and what you're looking for and
- 00:11:44how you're going to screen capture all
- 00:11:45those things but your
- 00:11:48mission is to go into the charts
- 00:11:51and look for this not being true
- 00:11:54okay this is exactly what i did on baby
- 00:11:57pips back in 2010
- 00:12:00i told everybody do not take my word for
- 00:12:01it
- 00:12:02don't take my word for it go into the
- 00:12:05charts and see if this is true or not i
- 00:12:07believe it
- 00:12:08but i don't want to try to convince you
- 00:12:10because i won't
- 00:12:12you'll convince yourself once you start
- 00:12:14seeing it
- 00:12:15it's it it's over there's no argument
- 00:12:17after that okay but it's simple logic
- 00:12:20very simple this is a very clean chart
- 00:12:21is it not
- 00:12:25all i'm going to do is add a few
- 00:12:26annotations and this is about as
- 00:12:28extensive
- 00:12:30of lipstick we put on our chart
- 00:12:33i know it's shocking right
- 00:12:35can you still see the candles
- 00:12:37because it might be a little obstructive
- 00:12:40i'm being facetious you see these guys
- 00:12:42out there with these charts that have
- 00:12:43graffiti all over it you can't even see
- 00:12:44the price candle nothing you can't you
- 00:12:46can't see any of it
- 00:12:48but there's all kinds of overlays of all
- 00:12:50kinds of nonsense which means absolutely
- 00:12:52nothing because algorithms could care
- 00:12:53less about any of that stuff triangles
- 00:12:56harmonic this
- 00:12:57crabs
- 00:12:59it's crazy i know but hey everybody's
- 00:13:02gotta have a religion
- 00:13:04so here's those
- 00:13:05cell stops
- 00:13:07so this little area here shaded in
- 00:13:09that's a
- 00:13:10area where cell stops would be residing
- 00:13:12below
- 00:13:13that 14 600 level okay on that 15 minute
- 00:13:16time frame
- 00:13:18so
- 00:13:18the market dove into that liquidity
- 00:13:21and you may or may not know that is a
- 00:13:23buy you don't need to
- 00:13:26you anticipate a
- 00:13:28shift in market structure
- 00:13:29when the market rallies above when does
- 00:13:31that happen on this candle right here
- 00:13:32see that little light bulb that's when
- 00:13:34you're thinking okay now i have a
- 00:13:38condition in the marketplace
- 00:13:40that i might see an opportunity intraday
- 00:13:43let's see if there's further evidence to
- 00:13:45that
- 00:13:47high is taken here we traded above it it
- 00:13:50does not need to close above that
- 00:13:53okay real important
- 00:13:56once that candle closes
- 00:13:58and this candle opens you're gonna
- 00:14:01monitor this candle and you want to see
- 00:14:03as soon as this candle closes does it
- 00:14:04create that fair value gap
- 00:14:08if it creates a fair value gap again
- 00:14:10that's a candle with a high one single
- 00:14:12pass up
- 00:14:13next candle has a load it doesn't
- 00:14:14completely overlap all this
- 00:14:16that's a fair value real simple okay
- 00:14:19this candle is where you would look to
- 00:14:20potentially trade at the earliest
- 00:14:23because now there's a gap there the
- 00:14:24market trades down into that
- 00:14:26boom takes off here is insight
- 00:14:30that everybody needs to understand
- 00:14:32because they're out here running around
- 00:14:33on youtube trying to teach order block
- 00:14:35theory
- 00:14:36order blocks
- 00:14:38okay i invented it it's mine
- 00:14:41no one talked about it before me and i
- 00:14:43first mentioned it in 2010 on baby pips
- 00:14:46prior to that 1996 i was only teaching
- 00:14:48it to people one-on-one in teachings
- 00:14:50that's it
- 00:14:51okay you can't find it in books prior to
- 00:14:53that it's mine
- 00:14:55no one else taught it before me it is
- 00:14:57mine so i'm going to correct all of you
- 00:14:59today so that way you can teach your
- 00:15:01people correctly and not hurt them
- 00:15:04see these down closed candles
- 00:15:06see that
- 00:15:08that's all one continuous order block
- 00:15:12what's it doing
- 00:15:14it's inside that pool of liquidity cell
- 00:15:16stops
- 00:15:18where's the open on that
- 00:15:20series of down closed candles right here
- 00:15:23that's the price level extending out in
- 00:15:24time boom
- 00:15:27so inside this fair value gap this
- 00:15:29opening price on the order block that's
- 00:15:31your buy
- 00:15:32plus
- 00:15:33three pips or whatever for spread
- 00:15:35and that's what you would use for a
- 00:15:36limit order
- 00:15:38hmm
- 00:15:40that's pretty neat in it
- 00:15:42well
- 00:15:44price starts to run where
- 00:15:46above the highs where by slots will be
- 00:15:47here
- 00:15:48above this high here
- 00:15:51and above this high here now go back and
- 00:15:53look at the example where
- 00:15:55this particular day here
- 00:15:57i put in orders
- 00:15:59and i was still learning how to use the
- 00:16:02thinkorswim platform and there's a
- 00:16:04little toggle box where if you toggle it
- 00:16:07it'll send your order right to the
- 00:16:08marketplace it won't let you review it
- 00:16:10and i had put that on to see if it was
- 00:16:12going to show me any kind of information
- 00:16:14on the screen but i didn't take it off
- 00:16:16so what happened was i put that on it
- 00:16:18was actually an order that i
- 00:16:20mistakenly had in so i was hoping to see
- 00:16:22if it could
- 00:16:23give me an opportunity to get out of it
- 00:16:25and cover with next to nothing or maybe
- 00:16:26even squeak out a profit it wasn't
- 00:16:28having it so i had to reverse and go
- 00:16:30back and go short
- 00:16:31wrote it down and then
- 00:16:33you'll see me covering in here and then
- 00:16:36going long
- 00:16:37selling short
- 00:16:38reversing going short
- 00:16:40buying long in here
- 00:16:42inside the order block rallied up
- 00:16:44sold the long reversed it
- 00:16:47bought it here
- 00:16:48got out over here and resold for that
- 00:16:50big run
- 00:16:51into that okay
- 00:16:53that's what i was doing there's people
- 00:16:55out there going to tell you he doesn't
- 00:16:56trade that way these people don't know
- 00:16:58how i'm trading you have no idea how i'm
- 00:17:00trading
- 00:17:01none of you do okay
- 00:17:02i'm teaching you
- 00:17:04obviously for those individuals that are
- 00:17:06outside my paid mentorship which is not
- 00:17:08open so please stop emailing asking
- 00:17:10people are still
- 00:17:11sending me emails can i join no you
- 00:17:13can't join be content with this i'm
- 00:17:15teaching you gold
- 00:17:17and it's costing you nothing but the
- 00:17:18time to sit down here
- 00:17:20and if it doesn't work you're going to
- 00:17:21know right away
- 00:17:23okay i'm not wasting your time
- 00:17:25i'm going right into the brass tacks
- 00:17:27that way the people that are weak minded
- 00:17:29will know right away this is it or it's
- 00:17:31not that way you'll know this is too
- 00:17:33much work for you
- 00:17:34and that's fine go and do whatever you
- 00:17:35got to do and i wish you good luck but
- 00:17:37the individuals that really put the time
- 00:17:39in and test what i'm
- 00:17:41challenging to look for you're going to
- 00:17:43see it's there and it repeats like
- 00:17:45clockwork okay it's real important you
- 00:17:47have that mindset
- 00:17:49so the buy stops
- 00:17:51above here that was taken
- 00:17:53this swing low forms once this candle
- 00:17:55closes so this candle we're watching
- 00:17:57does it go below that short term low it
- 00:17:59does
- 00:18:00so now we have a shift in market
- 00:18:01structure that is now bearish only
- 00:18:03because we've taken buy stops
- 00:18:06okay
- 00:18:08if everybody got forms the market
- 00:18:10rallies up into that you go short there
- 00:18:13what are you looking for
- 00:18:17below here sell stops below here cell
- 00:18:20stops below here cell stops and in this
- 00:18:22fair bay gap here
- 00:18:24so if you are in a position that has
- 00:18:27multiple contracts or say you have
- 00:18:30a forex trade because this works in
- 00:18:32forex too it's not just limited to
- 00:18:34futures
- 00:18:35again i'm just using this asset class
- 00:18:36because i cut my teeth on these markets
- 00:18:39when everybody else was still in
- 00:18:41elementary school that's trying to teach
- 00:18:42today i was trading the s p
- 00:18:44okay i probably sound like a young guy
- 00:18:47but i'm actually getting turned 50. so
- 00:18:49i've been around for a long time 30
- 00:18:50years this november 5th 30 years that's
- 00:18:53three decades
- 00:18:55and the things i'm teaching you i'm not
- 00:18:56teaching you one trick pony
- 00:18:59insight these things work on all asset
- 00:19:01classes now i'm not going to co-sign the
- 00:19:04crypto markets because that
- 00:19:06only my students are reporting that this
- 00:19:08stuff works there i don't even mess
- 00:19:10around with it that much then though
- 00:19:11okay
- 00:19:12but
- 00:19:13you can take partials
- 00:19:15below here i probably wouldn't do it
- 00:19:16there but below here
- 00:19:18here and there's something you're saying
- 00:19:20why wouldn't you take them below their
- 00:19:21ict well if you're trying to get short
- 00:19:23here that's not really that much
- 00:19:24movement so if you're going to take some
- 00:19:26thing off your trade below that low why
- 00:19:28not just try to reach for that one and
- 00:19:30you could get it there right here okay
- 00:19:32and then although that low is nice as
- 00:19:34well
- 00:19:35below this low and this is what i
- 00:19:37mentioned on the first
- 00:19:38lesson
- 00:19:39okay elements to a trade setup
- 00:19:42this is
- 00:19:43below the 50
- 00:19:45level of this high
- 00:19:47and that low okay so 50 level that's
- 00:19:50what we targeting now
- 00:19:52this candle's low was the high end or
- 00:19:55first objective
- 00:19:57inside this gap
- 00:19:58so that's your target you're gonna look
- 00:20:00for that
- 00:20:01so
- 00:20:02you're looking for low hanging fruit the
- 00:20:04easiest target to get to you're not
- 00:20:05trying to be perfect and you grow into
- 00:20:07eventually holding to see if it will
- 00:20:09fill in that gap
- 00:20:10okay this very very always going down to
- 00:20:12this candle is high
- 00:20:15that's
- 00:20:17something that you
- 00:20:18strive for over time
- 00:20:22if
- 00:20:24you understand what i just showed you
- 00:20:25here
- 00:20:26that's a very simple process of looking
- 00:20:28for number one liquidity
- 00:20:30gauging what happens without having to
- 00:20:33know for certain because you don't know
- 00:20:35you're not going to know until the
- 00:20:37market shows its hand this is it showing
- 00:20:40its hand
- 00:20:45okay that's it
- 00:20:47now
- 00:20:49let's go into a one-minute chart and see
- 00:20:50how that looks a little bit different
- 00:20:52but still has the same characteristics
- 00:20:55here's that same price structure
- 00:20:58just on a one-minute chart
- 00:21:00the same logic still there right
- 00:21:02swing high taken after liquidity has
- 00:21:04been traded into
- 00:21:06this short-term high
- 00:21:08it's violated right when this trades
- 00:21:10down in here what's actually occurring
- 00:21:12okay put this in your notes
- 00:21:15high frequency algorithms are hammering
- 00:21:18they're just throwing orders in bye bye
- 00:21:21bye bye bye that is not okay here's an
- 00:21:23important thing that is not causing
- 00:21:26okay it's not causing
- 00:21:29the market to go higher
- 00:21:33it's just
- 00:21:35volume that's coming in
- 00:21:38the algorithms that deliver price
- 00:21:41that offer price they're constantly
- 00:21:43offering the price in the marketplace
- 00:21:46that's what's beginning to spool and go
- 00:21:49higher okay and regardless of where you
- 00:21:51want to trade at your limit orders they
- 00:21:53may not get filled
- 00:21:54where you're trying to buy with a market
- 00:21:56order
- 00:21:57you may think you're getting in at 14 62
- 00:22:01but by the time your order is executed
- 00:22:03and confirmed you're in 14 664.
- 00:22:07that's slippage
- 00:22:09okay that's negative slippage if you
- 00:22:10were trying to buy it at 14 62
- 00:22:13and it filled you at 14 661 that's
- 00:22:16positive slippage that's better than
- 00:22:17what you were expecting
- 00:22:18so
- 00:22:21when price starts to rally
- 00:22:23all this is is a default to
- 00:22:26the algorithm constantly offering price
- 00:22:28at a higher price
- 00:22:30okay and the logic and argument for
- 00:22:32anyone who wants to say oh it's buying
- 00:22:34selling pressure this guy has no idea
- 00:22:35he's talking about i know somebody that
- 00:22:36used to trade on the floor and he's
- 00:22:38laughing at ict right now okay
- 00:22:40go into your charts forget that i'll
- 00:22:42i'll let you have that
- 00:22:44perspective for a moment for the
- 00:22:45argument but go into the charts
- 00:22:47and see if what i'm not suggesting to
- 00:22:49you is the truth okay
- 00:22:52i could sit here and do a complete
- 00:22:54series on all the things that lead to
- 00:22:56what i'm saying is true
- 00:22:58but none of you will still believe it
- 00:22:59i'm showing a live account and entries
- 00:23:01and executions and they're still
- 00:23:03doubting it
- 00:23:04so no matter what i do there's going to
- 00:23:05be people out there but you didn't do it
- 00:23:07wearing orange
- 00:23:09you didn't do it in your corvette did
- 00:23:11you flip which i don't flip corvettes
- 00:23:14you're getting all kinds of stuff out
- 00:23:15there nonsense
- 00:23:16but you don't see anybody going into
- 00:23:18that robin's cup
- 00:23:20hello
- 00:23:22so
- 00:23:23we're looking at the
- 00:23:25swing lower here
- 00:23:27market breaks down trades back back up
- 00:23:29into this back up atmosphere you got
- 00:23:30here
- 00:23:32and sells off there's another favorite
- 00:23:33you got right there trades up into that
- 00:23:35as well this is a one minute chart so
- 00:23:37it's giving you multiple
- 00:23:40points of execution that you could trade
- 00:23:42on
- 00:23:43and then
- 00:23:44dives
- 00:23:46see these two candles here
- 00:23:48that's one consecutive bearish order
- 00:23:50block
- 00:23:52the opening price
- 00:23:54extended out in time
- 00:23:55why is this a good a bearish order block
- 00:23:57because it has that gap
- 00:24:00and it's taken liquidity
- 00:24:03and there's a market structure shift
- 00:24:06there's your height frequency high power
- 00:24:08high probability bearish order block
- 00:24:10forget everybody else's
- 00:24:13interpretation of my concept the order
- 00:24:16block
- 00:24:17that's it
- 00:24:18okay what is an older block you do you
- 00:24:21see a lot of people asking what is an
- 00:24:22order block
- 00:24:23only my students and mentorship know
- 00:24:25what an order block is okay what it is
- 00:24:28it's just change in the state of
- 00:24:29delivery
- 00:24:30okay it's a change in the state
- 00:24:34of delivery
- 00:24:36the market's being offered higher higher
- 00:24:38higher in these two up close candles
- 00:24:40how did this series of up close candles
- 00:24:43begin with this candle's opening right
- 00:24:45there
- 00:24:47that opening
- 00:24:48once this candle trades below it
- 00:24:52that changes the state of delivery so
- 00:24:55you go back to that point of reference
- 00:24:56right there
- 00:24:58and that's why it's sensitive the
- 00:24:59algorithm remembers that right there
- 00:25:02okay that's all i'm going to give you on
- 00:25:04the free mentorship level but that is
- 00:25:06your answer
- 00:25:07okay that is what an order block is it
- 00:25:09is a change in the state of delivery
- 00:25:11much in the same way all of this
- 00:25:13movement down here all these down closed
- 00:25:15candles the opening on that candle
- 00:25:17starts this series of delivery on the
- 00:25:18downside
- 00:25:19when that opening price gets violated
- 00:25:21here
- 00:25:23it changes its state of delivery now it
- 00:25:24was offering
- 00:25:26sell side
- 00:25:28when it goes above that opening now it's
- 00:25:30offering buy side what will it be doing
- 00:25:33after that it will be looking for buy
- 00:25:35stops buy stops buy stops because it's
- 00:25:38offering buy side liquidity
- 00:25:41see you guys don't even know what you're
- 00:25:42talking about you're trying to teach my
- 00:25:44concepts
- 00:25:45and you have no idea what you're doing
- 00:25:46you're talking about things in the left
- 00:25:47side of the chart
- 00:25:49trade it
- 00:25:50do it okay
- 00:25:53you don't even know what you're looking
- 00:25:54at
- 00:25:55and you're hurting the people you call
- 00:25:56your students
- 00:25:58and then right away when people
- 00:26:00don't know how to use them or understand
- 00:26:02what to do with them
- 00:26:03they'll say well this stuff doesn't work
- 00:26:05because they learn from someone who
- 00:26:06doesn't know what they're doing
- 00:26:08okay
- 00:26:09it's it's blatantly obvious what it is
- 00:26:11but okay
- 00:26:13same thing here
- 00:26:14buy side is being offered until that
- 00:26:17opening price is violated right there
- 00:26:18then the change of state of delivery
- 00:26:20occurs now the market's going to be
- 00:26:21doing what
- 00:26:23offering sell side liquidity what's that
- 00:26:25mean it's going to start going lower and
- 00:26:27attacking the sell stops all the sell
- 00:26:29sell equity it's offering it to the
- 00:26:30marketplace that's what's happening
- 00:26:32that's what the algorithm is doing
- 00:26:34that's what the algorithm does okay you
- 00:26:37buying and selling me buying and selling
- 00:26:38everybody over there on reddit is not
- 00:26:40going to change
- 00:26:42anything
- 00:26:43at all it's not going to do anything
- 00:26:47and the argument that defeats all that
- 00:26:49buying and selling pressure is how do
- 00:26:52you argue against the bull squeeze and
- 00:26:55the bear squeeze there's a short squeeze
- 00:26:57going on the market's rallying up when
- 00:26:59it's been bearish
- 00:27:01that's just their cop-out that's their
- 00:27:02way of saying well you know
- 00:27:05everybody shorten and now they're
- 00:27:07covering so there it is and i learned
- 00:27:09the same thing folks i believed all that
- 00:27:10garbage
- 00:27:11two thousand plus books i know
- 00:27:14what those books told me is what you are
- 00:27:16learning too
- 00:27:17because the same people teaching today
- 00:27:19retail garbage
- 00:27:21elliott wave this and that
- 00:27:24it's all stupid stuff man it has nothing
- 00:27:26to do with why these markets are doing
- 00:27:27what they're doing
- 00:27:28zero has nothing to do with it
- 00:27:31don't worry i got proof
- 00:27:32today but the market goes down to that
- 00:27:3450 level because it's going down to what
- 00:27:37i teach you what did i say in the first
- 00:27:38video
- 00:27:39it's going down from a premium
- 00:27:42market
- 00:27:44relative to this low and this high
- 00:27:4650 is here that's equilibrium so it's
- 00:27:48going to go down to a discount and
- 00:27:50that's that gap right in here it doesn't
- 00:27:51look like a gap so much here but if you
- 00:27:53go back up one more time
- 00:27:55that's that single opening right there
- 00:27:58on a two-minute chart and then on a
- 00:27:59one-minute chart it's two candles that
- 00:28:01make that up but you're gonna have to do
- 00:28:03is go through a progression of going
- 00:28:04from the three minute two minute and one
- 00:28:06minute chart and you'll get your market
- 00:28:08structure and your
- 00:28:09areas of where it wants to look for an
- 00:28:10imbalance or overload high and it just
- 00:28:13makes it easy
- 00:28:15but just a real nice delivery there
- 00:28:20and here's the lipstick on it on the one
- 00:28:22minute chart
- 00:28:24swing high is broken
- 00:28:27market structure is now bullish
- 00:28:30rallies
- 00:28:32taking buy stops taking buy stops taking
- 00:28:35buy stops
- 00:28:36this right here these highs right here
- 00:28:38is just staying below that low it's
- 00:28:40building up
- 00:28:42more interest that this is what
- 00:28:44resistance
- 00:28:46that is engineering liquidity
- 00:28:48that way
- 00:28:50when this runs above it
- 00:28:51those individuals that know what you're
- 00:28:53learning today they know that that's a
- 00:28:55pool of liquidity for buyers coming in
- 00:28:57at a high price why is that useful
- 00:28:59because smart money that bought down
- 00:29:01here or here or here or here or here
- 00:29:07that's where they sell
- 00:29:09to high
- 00:29:10seeking
- 00:29:11buyers
- 00:29:15it's not hard logic folks it's not
- 00:29:17complicated
- 00:29:18okay it just feels complicated because
- 00:29:19you see other people trying to teach
- 00:29:21something and you hear or read in the
- 00:29:22comments you're teaching it better than
- 00:29:24ict does no you don't
- 00:29:26[Laughter]
- 00:29:27no you're not you're not doing you're
- 00:29:29actually teaching it incorrectly and
- 00:29:31without the real context of what it is
- 00:29:34that you're missing
- 00:29:36but i get it you think every down closed
- 00:29:38candle is a bullish order block and up
- 00:29:40claim that one is a very short block and
- 00:29:42that's not the case
- 00:29:44look in here
- 00:29:45okay for the guys that say i did not
- 00:29:47take trades or i didn't trade this way
- 00:29:50see that gap right there see that see
- 00:29:52that down closed candle right there
- 00:29:53that's your order block boom by it right
- 00:29:55there
- 00:29:56what about this
- 00:29:58right here
- 00:29:59dropping down
- 00:30:01all these candles here
- 00:30:03are more
- 00:30:04significant if you look at it on the two
- 00:30:06minute chart
- 00:30:09see that it becomes one order block
- 00:30:13right in here
- 00:30:15buy it sell short buy it again
- 00:30:18we got up into the stops
- 00:30:20sell short reverse and ride the larger
- 00:30:23swing down
- 00:30:25don't listen these yahoos out there to
- 00:30:27say that i'm not proving something to
- 00:30:29you i'm proving it that's what i said i
- 00:30:30was going to come out here this year and
- 00:30:31do that's this whole point of being here
- 00:30:34this year
- 00:30:35it's my 30th anniversary
- 00:30:37november 5th
- 00:30:38i've been a trader
- 00:30:40in the markets
- 00:30:41living and breathing this stuff for 30
- 00:30:43years
- 00:30:45you're not
- 00:30:48really in any position to demand
- 00:30:50anything from me i enjoy doing this
- 00:30:53but i don't need to provide any kind of
- 00:30:54proof to you either but i'm loving it
- 00:30:56this year
- 00:30:57i'm
- 00:30:58slowly putting it out there and enjoying
- 00:31:00all the naysayers and the things they're
- 00:31:02saying
- 00:31:03and it's just fun because they have no
- 00:31:05idea what i'm about to bring this entire
- 00:31:07year
- 00:31:08none of you are going to doubt anything
- 00:31:12so the one-minute chart
- 00:31:15just a real nice delivery here as well
- 00:31:18filling in that very value you got
- 00:31:21change in the state of delivery
- 00:31:23now it's offering sell side what's that
- 00:31:25mean it's going to match up
- 00:31:27sell stops it's going to keep going
- 00:31:29below old lows
- 00:31:32into an imbalance until we get down to a
- 00:31:34discount
- 00:31:37is that hard
- 00:31:38is it hard to see
- 00:31:40what i'm showing you here
- 00:31:43pretty clean isn't it clean chart now i
- 00:31:45don't have all these things
- 00:31:48on my chart when i'm watching price
- 00:31:49because i already know what i'm looking
- 00:31:50for
- 00:31:51and i don't want to have any
- 00:31:52distractions and i don't want to have
- 00:31:54a level or some kind of annotation
- 00:31:56that's going to keep me thinking only
- 00:31:58with that perspective okay or that idea
- 00:32:01it allows me to be fluid
- 00:32:04with
- 00:32:05what the market's actually doing
- 00:32:07versus going in and saying okay this is
- 00:32:09what i think is going to happen and this
- 00:32:10is the only thing that can happen
- 00:32:13you understand what i just did there
- 00:32:15i allow myself to be flexible whereas if
- 00:32:17you have all these things you're putting
- 00:32:18on your chart
- 00:32:20you're only
- 00:32:22only seeing your will be done
- 00:32:26so i keep my charts
- 00:32:28clean
- 00:32:30and then i add the annotations so that
- 00:32:31way my students can see
- 00:32:33what the internal dialogue in my mind
- 00:32:35was while watching price do what it does
- 00:32:38naked there's nothing on the charts at
- 00:32:40all when i'm trading zero nothing okay
- 00:32:44so with that
- 00:32:46i want you to think about
- 00:32:49how this is useful okay
- 00:32:52number one
- 00:32:53you're looking at
- 00:32:55london highs and lows the session for
- 00:32:58london
- 00:32:59open okay for instance like two o'clock
- 00:33:01in the morning at five o'clock in the
- 00:33:01morning
- 00:33:02new york time every time i tell you just
- 00:33:05always set it
- 00:33:06with new york local time
- 00:33:08two o'clock to five o'clock in the
- 00:33:09morning that's your london session
- 00:33:11what's the highs and lows of that
- 00:33:12session okay
- 00:33:14that's important because the market's
- 00:33:15going to probably sweep above those
- 00:33:17highs or sweep below those lows and
- 00:33:19create situations like this okay
- 00:33:22and the new york session is seven
- 00:33:25o'clock in the morning to 10 o'clock in
- 00:33:27the morning new york local time okay
- 00:33:28what's the session high and low for that
- 00:33:31and do the same thing for asia okay 7
- 00:33:34p.m to
- 00:33:369 p.m
- 00:33:38and that's it those are the three times
- 00:33:40of the day that i'm looking for specific
- 00:33:42key highs and kilos
- 00:33:44and
- 00:33:45any intraday high and low forming right
- 00:33:48before the equities open at 9 30.
- 00:33:51pretty easy right the hours of operation
- 00:33:53again are generally between 8 30 in the
- 00:33:55morning until 11 but it can be extended
- 00:33:58to new york lunch noon i do not
- 00:34:01tend to
- 00:34:02take trades after
- 00:34:04noon local time in new york that hour is
- 00:34:07usually very problematic and it just
- 00:34:10it's better not to even look for any
- 00:34:11kind of setups wait until one o'clock
- 00:34:13preferably really 1 30
- 00:34:15to 4 o'clock then you get that afternoon
- 00:34:17trend
- 00:34:18typically you'll see between two o'clock
- 00:34:21and three o'clock there's a setup that
- 00:34:22usually forms in the afternoon trend or
- 00:34:24set up in that period of the time of the
- 00:34:26day
- 00:34:28that will also offer opportunities but
- 00:34:30that's outside the scope of what i'm
- 00:34:31going to be teaching in this mentorship
- 00:34:33but there's lots of things you can look
- 00:34:35on youtube about the afternoon session
- 00:34:37and you can just combine some of the
- 00:34:39things that i'm going to teach you here
- 00:34:41and just it's not hard to make a
- 00:34:43you know an addition to
- 00:34:45what you're learning here so if you want
- 00:34:46to trade the afternoon session you can
- 00:34:48obviously pick up some insights from
- 00:34:50other youtubers that do trade futures
- 00:34:52but
- 00:34:54for developing students this is enough i
- 00:34:56promise you this is enough okay
- 00:35:02all right so we talked about internal
- 00:35:03range liquidity
- 00:35:04and internal range liquidity is looking
- 00:35:07for
- 00:35:08short-term lows or short-term highs
- 00:35:10inside a price leg that we're retracing
- 00:35:13back into okay that's all it means
- 00:35:15internal range liquidity is a short term
- 00:35:18higher low with stops above or below it
- 00:35:20or an imbalance in that same
- 00:35:23range of price action
- 00:35:25and i taught you market structure shifts
- 00:35:27showed you exactly all that's necessary
- 00:35:31that is all that you require
- 00:35:33and the skill set of identifying pools
- 00:35:36of liquidity
- 00:35:37that is going to be something you learn
- 00:35:39rather quickly just by going through old
- 00:35:41data and looking at the times of the day
- 00:35:42i gave you in this lecture all right
- 00:35:44your homework is you're going to go
- 00:35:45through your e-mini futures intraday
- 00:35:47charts
- 00:35:48and you'll be looking for stop hunts
- 00:35:50that lead to market structure shifts
- 00:35:51intraday you're going to log your
- 00:35:53examples with your own annotations for
- 00:35:55your study journal
- 00:35:56so what i showed with the break in the
- 00:35:59market going higher and lower above
- 00:36:02old highs or lower below an old low
- 00:36:05that's running for stops that's a stop
- 00:36:07hunt
- 00:36:09then you're looking for that signature
- 00:36:10for the market structure shift on the
- 00:36:13three two and or one minute charts okay
- 00:36:16if you look for that between 8 30 in the
- 00:36:18morning to noon new york local time
- 00:36:20in the e-mini markets or if you're
- 00:36:23watching the micro markets
- 00:36:26the same logic exists okay but you're
- 00:36:28going to start going back from today
- 00:36:31and go back as far as the data will
- 00:36:33allow you the more you do it and you
- 00:36:36annotate your charts the more experience
- 00:36:38you're going to have and it's pseudo
- 00:36:40experience yes but you're teaching your
- 00:36:42brain i use this analogy a lot with my
- 00:36:44paid mentorship students
- 00:36:47it's like hunters okay
- 00:36:50to know where you're gonna find a deer
- 00:36:52if that's what you're going to go out
- 00:36:53and hunt you need to know how to track
- 00:36:55one okay or sit up in this tree stand
- 00:36:57and wait for it to walk by but usually
- 00:36:59they go out and they walk around in the
- 00:37:00woods and look for tracks
- 00:37:02would you know what a deer track looks
- 00:37:04like before i was shown one i didn't
- 00:37:06know what it was okay but
- 00:37:08because i'm showing you what it looks
- 00:37:10like that's all this lesson was
- 00:37:11predominantly focusing on is the
- 00:37:14actual
- 00:37:16view of what it looks like the details
- 00:37:19what you don't need is anything above
- 00:37:22and beyond what i've shown you
- 00:37:23the only thing you need is what i've
- 00:37:25shown you here it's simple it's straight
- 00:37:27to the point
- 00:37:29and i'm only talking to that way you
- 00:37:31understand
- 00:37:32that this is all that is required
- 00:37:35notice there is no commitment of traders
- 00:37:38notice there's no breakers notice that
- 00:37:41i've stripped it down to the chrome now
- 00:37:43this is the only way you can trade but
- 00:37:45i'm showing you something that i think
- 00:37:46personally is in my opinion this is so
- 00:37:48universally simplistic
- 00:37:51all of you should be able to do this one
- 00:37:53okay in my opinion i think this is it
- 00:37:55and that's why i
- 00:37:57more or less built it because i think my
- 00:37:59daughter which has zero interest in
- 00:38:01trading
- 00:38:02i think that this is going to be easy
- 00:38:04for her to see it and understand what to
- 00:38:06look for it doesn't have a lot of moving
- 00:38:07parts notice that it's very specific
- 00:38:09times of the day specific highs and lows
- 00:38:12you're going to look for
- 00:38:14it's simple
- 00:38:15but you won't appreciate how simple it
- 00:38:17is until you go back into your charts
- 00:38:20and you annotate your 15-minute time
- 00:38:21frame for your
- 00:38:23buy-side liquidity pool and your
- 00:38:24sell-side liquidity pools
- 00:38:26and then going down into the
- 00:38:28three-minute two-minute moment chart so
- 00:38:30for every individual day that you're
- 00:38:32logging
- 00:38:33and you're back testing back testing is
- 00:38:34just dressing your chart up like i'm
- 00:38:36showing you here
- 00:38:38and then studying it not just do it say
- 00:38:40okay i'm done really going to see how
- 00:38:42price moved and how it delivered
- 00:38:45how many pips did it move
- 00:38:47how long did it move going higher or
- 00:38:49lower
- 00:38:51how much drawdown did it put on your
- 00:38:52position if you would have taken one
- 00:38:54all of those things you want to annotate
- 00:38:56that in your chart so that way when you
- 00:38:57go back through your study journal
- 00:39:00you'll have many examples that look at
- 00:39:02and because you're looking at it and
- 00:39:04you're seeing it over and over again
- 00:39:06repetitively
- 00:39:08when you have a period of time where
- 00:39:10nothing feels like it's working and you
- 00:39:12feel confused you want to go back
- 00:39:13through your study journal and look at
- 00:39:14these examples because it will encourage
- 00:39:16you through periods of time where you
- 00:39:18just feel like it isn't clicking okay
- 00:39:20it's why it's important to have a study
- 00:39:21journal because you're going to see this
- 00:39:22stuff is happening every single day
- 00:39:26every single day and don't
- 00:39:29take the infancy that you have right now
- 00:39:33and the lack of experience
- 00:39:35and amplify that to there's no way i can
- 00:39:38learn how to do this because that's a
- 00:39:39lie that's a facade don't buy into that
- 00:39:42view okay it's something that you're
- 00:39:44going to have to grow into and it's
- 00:39:46going to be quick for some and it's
- 00:39:47going to be slower for others and
- 00:39:49there's no way i can make it easier than
- 00:39:51this okay because that workload that you
- 00:39:53have to go through of back testing and
- 00:39:55logging and acquiring examples the more
- 00:39:58time you do that
- 00:40:00the more examples you acquire in back
- 00:40:01testing i swear this is the secret okay
- 00:40:05because that is the thing
- 00:40:07that's the work that's required
- 00:40:10a lot of people say they do it but they
- 00:40:12don't okay they go back a couple days
- 00:40:14and say oh this is i don't think i'm
- 00:40:16getting anything from this
- 00:40:18but that's the reason why they fail
- 00:40:20because that's the work that's required
- 00:40:22you know having 10 pages in a notebook
- 00:40:24saying i took notes and you didn't take
- 00:40:26notes you scribbled you wasted your time
- 00:40:28you knew going in you weren't going to
- 00:40:29be that
- 00:40:31headstrong about doing it and that's
- 00:40:33what is required to learn this otherwise
- 00:40:35if you don't have that mindset this
- 00:40:37isn't going to be for you because it's
- 00:40:38going to require work it's going to take
- 00:40:40effort and organization and personal
- 00:40:42responsibility if you don't have those
- 00:40:44characteristics you need to develop them
- 00:40:46if you don't develop them and patients
- 00:40:49you must go out there and find somebody
- 00:40:51that's good at giving you trade signals
- 00:40:53and just submit to that
- 00:40:55and you good luck with it
- 00:40:58but this isn't it i got another portion
- 00:41:00of the video i want to show you now and
- 00:41:01i'm going to show you this logic
- 00:41:02actually working today in the nasdaq
- 00:41:04e-mini contract
- 00:41:06all right so we're looking at
- 00:41:08trading views chart in the backdrop and
- 00:41:11i have
- 00:41:12the td ameritrade
- 00:41:15open over top of it scrunched down so
- 00:41:17that way i can
- 00:41:18operate with the trading view and i'm
- 00:41:20going to highlight in trading view
- 00:41:23a fair value got after a market
- 00:41:25structure shift it's bullish
- 00:41:28and i'm going to show you an imbalance
- 00:41:29that is in a premium
- 00:41:33okay see that just the opposite of what
- 00:41:35i've been showing you
- 00:41:38change the color on this
- 00:41:42and the idea is i want to see it drop
- 00:41:44down into that green area but if you
- 00:41:46look real close there's actually a
- 00:41:48smaller little fair value got just below
- 00:41:51that green box okay this is not supply
- 00:41:54and demand okay
- 00:41:56the idea is i want to see it
- 00:41:59drop down to that green box
- 00:42:01and i don't know if it's going to dip
- 00:42:03into the lower fare value cap so
- 00:42:04whenever there's two fair value gaps
- 00:42:06like this this is for your notes in case
- 00:42:07you missed this
- 00:42:09the idea is
- 00:42:10i'm going to let it trade down to that
- 00:42:12lower one i'll sacrifice that
- 00:42:14better entry and if it trades down there
- 00:42:17and trades into it
- 00:42:18and then comes right back up into that
- 00:42:19green box the first higher fair value
- 00:42:21gap i'll enter when it's in there
- 00:42:24and expect that the lower one won't be
- 00:42:26retraded to okay
- 00:42:30i'm going to be trading with
- 00:42:32a stop that will have
- 00:42:34essentially three and a quarter percent
- 00:42:36risk
- 00:42:37i'm not suggesting that's a size of risk
- 00:42:39for you i'm just telling you that's what
- 00:42:41i have in mind when i'm taking this
- 00:42:42trade
- 00:42:44and this is again just my personal
- 00:42:46belief in this i'm not suggesting that
- 00:42:48you should believe me or you subscribe
- 00:42:51to this view because i'm showing you a
- 00:42:53live account this does not mean that
- 00:42:55every trade you take forward from this
- 00:42:57day on is going to be like this it
- 00:42:59doesn't mean it guarantees profit it
- 00:43:00doesn't but my belief in my faith is
- 00:43:04that i've seen this work so many times
- 00:43:06over the last 30 years that i know
- 00:43:09that this is something that's going to
- 00:43:10work
- 00:43:11enough for me
- 00:43:12and that's all that matters it's a
- 00:43:13personal endeavor when you're
- 00:43:15speculating
- 00:43:17if you don't have any faith in it then
- 00:43:18obviously you would never put live money
- 00:43:21in it
- 00:43:24all right so the market's starting to
- 00:43:27drop down a little bit in here
- 00:43:29and let's say for instance that it runs
- 00:43:31up into that
- 00:43:33upper rectangle first before going down
- 00:43:35to the green one then i would nix the
- 00:43:37trade and that means i wouldn't take a
- 00:43:39trade and i'd move to the sidelines and
- 00:43:40probably do nothing the rest of the
- 00:43:42morning or watch and see if there's
- 00:43:43something else that sets up
- 00:43:46all right so now i'm inside that
- 00:43:47rectangle but notice again
- 00:43:49i want to see if it goes down to that
- 00:43:50lower fair value gap that's not
- 00:43:52highlighted i'll mention it when we get
- 00:43:53into it
- 00:43:57that right there i'm willing to
- 00:43:59sacrifice that because that's actually
- 00:44:00the better buy
- 00:44:04but if we go back up into the higher
- 00:44:06fair value gap
- 00:44:08and create like a tail
- 00:44:11on this particular candle
- 00:44:12i'll see that as just running for a
- 00:44:14lower imbalance and then
- 00:44:17it should accumulate in here
- 00:44:25and i have my trigger on the buy button
- 00:44:28okay i'm just going to go in with a buy
- 00:44:29at market
- 00:44:30not trying to do anything
- 00:44:33advanced here
- 00:44:40okay and if you look at the bottom of
- 00:44:42the td ameritrade live account module
- 00:44:45you'll see nasdaq symbol and
- 00:44:48you'll actually see my profit loss going
- 00:44:51as the trade is entered
- 00:44:54and i took a trade in the e-mini s p and
- 00:44:56it was basically a scratch i ended up
- 00:44:58making 75
- 00:44:59so i put a trade on and
- 00:45:02came back on me stopped me and that was
- 00:45:04the end of that
- 00:45:11all right there i am
- 00:45:13putting the order in
- 00:45:18and there's the confirmation that the
- 00:45:20orders were received
- 00:45:22so now i'm long you can see at the
- 00:45:25bottom of the
- 00:45:26pop out
- 00:45:28it shows that i'm down
- 00:45:30initially
- 00:45:32what looks like 20 i know i'm up 20
- 00:45:35right now so
- 00:45:36now down 75.
- 00:45:39so this is the part of trading where it
- 00:45:41feels scary if you've never traded with
- 00:45:44live funds
- 00:45:45and you just feel like you got to watch
- 00:45:47that number of how much money you're
- 00:45:49making and losing that's the worst thing
- 00:45:51to do okay
- 00:45:52what i'm watching is
- 00:45:54the chart
- 00:45:55does the chart continuously
- 00:45:57keep giving me feedback
- 00:45:59visually that it's accumulating and not
- 00:46:02going lower
- 00:46:03now it can go one more time back into
- 00:46:05that lower fair value gap that's
- 00:46:06permissible to me i'm willing to endure
- 00:46:09that
- 00:46:10i just don't want to see it overlap that
- 00:46:12entire thing and go lower because then
- 00:46:15i'd have to close the trade and
- 00:46:16preferably save my stop
- 00:46:21notice the bodies of the candles are
- 00:46:22staying relatively inside that fair
- 00:46:24value got the shaded green
- 00:46:27now i again i'm only adding this
- 00:46:29to the chart because i knew i was going
- 00:46:30to record it and share it with you today
- 00:46:33but i do not have this in my charts
- 00:46:35okay the only annotations i have in my
- 00:46:37charts is when i'm teaching my students
- 00:46:39and since you're here
- 00:46:41at least for right now
- 00:46:43i'm calling you my student
- 00:46:47even the haters
- 00:46:52all right
- 00:46:54so with the
- 00:46:56aid of
- 00:46:57hindsight because i lived this moment
- 00:46:59this morning
- 00:47:00it does go down one more time
- 00:47:02and stab into
- 00:47:04those wicks that are forming
- 00:47:26now when you put a trade on
- 00:47:29you kind of like
- 00:47:31give the complete control of everything
- 00:47:34to the marketplace
- 00:47:35and you want to just allow the market to
- 00:47:37do what it's going to do and not try to
- 00:47:39overthink
- 00:47:41every fluctuation
- 00:47:42every little minor movement in the price
- 00:47:45action
- 00:47:46is
- 00:47:47not something that is going to hopefully
- 00:47:50sway you so i've already had it in my
- 00:47:53mind that it could go back down and make
- 00:47:54a slightly lower low than those two
- 00:47:56little wicks that it's formed inside the
- 00:47:58lower fair value gap
- 00:48:01so since i had that expectation that it
- 00:48:03could potentially do that
- 00:48:06i'm
- 00:48:07desensitizing myself to that in the
- 00:48:10event that it forms
- 00:48:11an ideal scenario would be it doesn't do
- 00:48:13it at all obviously but
- 00:48:15i'm allowing for that price action
- 00:48:17especially with the volatility that
- 00:48:18we've been seeing the last few days
- 00:48:24and what i'm thinking right now is
- 00:48:25they're taking it down one more time to
- 00:48:27accumulate more longs
- 00:48:32notice i'm saying that not it's selling
- 00:48:34pressure driving price down
- 00:48:47i think this uh
- 00:48:49this is where i took the most heat on
- 00:48:50the trade if i'm not mistaken i think
- 00:48:52it's like 455 dollars of
- 00:48:55trade drawdown while being still in the
- 00:48:57trade which is below the threshold i've
- 00:49:00already said
- 00:49:05my maximum risk
- 00:49:07on a trade if i'm trading competitively
- 00:49:08is four and a half percent per trade
- 00:49:11generally i like to take a trade that i
- 00:49:13feel comfortable with around three
- 00:49:15three and a half percent that's a good
- 00:49:17trade for me
- 00:49:24okay showing signs initially that it's
- 00:49:26wanting to go higher
- 00:49:28and what i'm trying to do is keep my
- 00:49:30focus on that lower
- 00:49:32level or the the bottom of that pink
- 00:49:34rectangle that's the low hanging fruit
- 00:49:36that's the easy target i'm telling you
- 00:49:39to try to practice and learn to reach
- 00:49:40for the ideal scenario would be to go
- 00:49:43all the way to the top of that pink
- 00:49:45but while you're learning don't do that
- 00:49:48okay
- 00:49:49it's easier just to let it trade the low
- 00:49:52end
- 00:49:53and just take it off when it gives it to
- 00:49:55you
- 00:49:57i have my trigger on the flatten button
- 00:49:59so it cancels every order
- 00:50:01takes me completely out of the
- 00:50:02marketplace
- 00:50:07as soon as it touches the low end of
- 00:50:09that rectangle
- 00:50:11i'll collapse the trade
- 00:50:14right now i'm up seven nine almost nine
- 00:50:16hundred dollars eight ninety five nine
- 00:50:19thirty five
- 00:50:21nine twenty five
- 00:50:25and again you can watch that fluctuation
- 00:50:26in the lower right hand corner of the
- 00:50:29pop out
- 00:50:30i'm at 1100 plus
- 00:50:3311.49
- 00:50:35okay traded there touched it now i'm
- 00:50:37collapsing the trade there just like
- 00:50:39that and that's it
- 00:50:41now my account's booked and mark to
- 00:50:43market
- 00:50:44with eleven hundred
- 00:50:47ninety dollars and
- 00:50:48gain in the balance now reflects it with
- 00:50:50twenty seven thousand nine hundred
- 00:50:51fifteen dollars and eleven cents so
- 00:50:53there's trading view
- 00:50:55showing the chart i'm watching because i
- 00:50:57like trading these charts i don't like
- 00:50:59td ameritrades charts it's i don't like
- 00:51:01them so i'm just using the pop out which
- 00:51:03is why are you showing us things
- 00:51:05scrunched up you're just i'm not hiding
- 00:51:06anything you can see it it's right there
- 00:51:09so
- 00:51:10let's go over and take a look at the
- 00:51:11chart now
- 00:51:13you can see nothing has changed i just
- 00:51:15magnified that pop out so it's entirely
- 00:51:18taking up my entire screen
- 00:51:22we're gonna go to
- 00:51:23the nasdaq e-mini contract
- 00:51:26simple
- 00:51:28and i am so clumsy with this platform
- 00:51:30still
- 00:51:36and i'm sure i'll get real good at by
- 00:51:38the middle of the year and not nudge
- 00:51:41all right so we're gonna look at this
- 00:51:43day
- 00:51:44and there's the chart on one minute and
- 00:51:47i'm gonna add an overlay okay
- 00:51:50but i'm going to put in so you can see
- 00:51:51where the trades are
- 00:51:55in that chart there's the executions
- 00:51:59and there is these areas i showed you on
- 00:52:02the trading view chart
- 00:52:03so
- 00:52:04for the inquiring minds that wanted to
- 00:52:05see a live chart and live account and
- 00:52:08all that business and the logic of what
- 00:52:10i'm teaching in the youtube channel
- 00:52:12i humbly submit this
- 00:52:14and so i'll talk to you on
- 00:52:16thursday be safe
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