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all right folks welcome back this is the
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internal range liquidity and Market
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structure shifts lecture again 15-minute
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time frame on the e- mini NASDAQ 100
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Futures Contract for March delivery
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2022 and take your attention over here
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okay this old
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low and these relative equal highs see
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that old low below that is sell
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stops and relative equal highs above
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that is buy stops now you could have
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used this High here there's nothing
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inherently wrong about that but whenever
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I see equal highs like this might and if
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it's higher than an old high over here
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I'm going to use that so that way
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there's a little bit of insight for you
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for your study
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journal the sell side liquidity you can
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see that the market trades down hits
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that runs through
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it then rallies all the way back up
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clearing equal highs so the buy stops
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have been taken here okay so at both of
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these price points here and here that's
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the I guess the point at which you'll
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look for or anticipate a market
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structure Shift You Don't Force It okay
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I see a lot of people try to teach my
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Concepts that'll talk about Market
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structure breaks or shifts and we'll use
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that term interchangeably but for
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intraday I want you to think about
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intraday Market structure shifts because
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it's not necessarily A break-in Market
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structure that leads to prolonged
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multi-day movement okay what do I mean
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by that if you see a market structure
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that's bearish and it's broken to the
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downside intraday that may just lead to
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an intraday price leg that may
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eventually see that high be taken out in
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the same day so that's why I'm using the
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term Market structure shift not Market
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structure
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break for our conversation here on this
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mentorship just know that when I'm going
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to lean on that term Market structure
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break it means a little bit more in
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context versus an intraday shift in
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Market structure just means there's
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likely a downside draw or an upside draw
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intraday by seeing the term shift okay
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so there's a little bit of semantics
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there all right so we have both of these
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areas here and here where there would be
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a likelihood of a market structure shift
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up here we look for a fake run above
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here so that fake run above how do we
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know it's going to be a market structure
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shift that's bearish now keep this price
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level in mind so it's essentially 14,600
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and 14,820 which're is eyeballing it
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okay now dropping all the way down into
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a two-minute chart this is that same
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particular day here's those relative
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equal highs and this run down here if
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you recall 146 and around that 14860 or
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so if you look at this Market structure
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without having the levels on your chart
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it's easy to get lost when we had this
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low form right before this low was
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formed there's a swing high right
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there now in the first mentorship video
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I gave you I mentioned that high
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frequency trading algorithms will use
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marked structure on a 3 minute 2 minute
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1 minute chart many times sub 1 minute
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that would be like 45 second 30 second
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15c intervals if you look at this
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short-term High here right before this
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low formed when this high is taken out
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right there on that candle that's
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significant only if this run down here
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has traded into cell stops okay below an
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old low of some kind it could be a
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double bottom it could be a single low
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but it's got to be Trading under some
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retail idea that would be viewed as
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support up here the same thing when this
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run above these relative equal highs
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happens right there you're anticipating
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a market structure shift let me go back
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to this for a second we had this high on
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this candle then we had the candle right
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after that here the highest one and then
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the lower high of this candle here so
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that's a swing High very simple little
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pattern but it means a lot when it's in
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the proper context when this high is
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broken with this particular candle right
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there that is significant only on the
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basis that we have taken liquidity out
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of the marketplace that's it so when it
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broke this short-term high this is more
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meaningful and then the market will
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start to seek buy stops okay or buy side
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liquidity that would rest above here
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here and here so here's those sell stops
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so this little area here shaded in
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that's a area where sell stops would be
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residing below that 14600 level okay on
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that 15 minute time frame so the market
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dove into that liquidity and you may or
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may not know that is a buy you don't
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need to anticipate a shift in Market
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structure when the market rallies above
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when does that happen on this candle
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right here see that little light bulb
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that's when you're thinking okay now I
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have a condition in the marketplace that
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I might see an opportunity intraday
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let's see if there's further evidence to
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that short-term high is taken here we
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traded above it it does not need to
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close above that okay really important
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once that candle closes and this candle
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opens you're going to monitor this
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candle and you want to see as soon as
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this candle closes does it create that
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fair value
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Gap If it creates a fair value Gap again
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that's a candle with a high one single
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pass up next candle has a low that
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doesn't completely overlap all this
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that's fair value Gap real simple okay
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this candle is where you would look to
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potentially trade at the earliest
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because now there's a gap there the
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market trades down into that boom takes
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off see these down closed candles see
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that that's all one continuous order
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block
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what's it
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doing it's inside that pool of liquidity
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sell stops where's the open on that
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series of down Clos candles right here
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that's the price level extending out in
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Time Boom so inside this fair value Gap
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this opening price on the order block
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that's your buy plus three Pips or
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whatever for spread and that's what you
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would use for a limit order well price
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starts to run where above the highs
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where buy stops will be here Above This
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High here and above this High here so
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the buy stops above here that was taken
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this swing low forms once this candle
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closes so this candle we're watching
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does it go below that short-term low it
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does so now we have a shift in Market
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structure that is now bearish only
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because we've taken buy stops fair value
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Gap forms the market rallies up into
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that you go short there what are you
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looking for below here sell stops below
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here sell stops below here sell stops
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and in this Fair Val
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here so if you are in a position that
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has multiple contracts you can take
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partials below here I really wouldn't do
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it there but below here here and some
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you saying why wouldn't you take them
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below their ICT well if you're trying to
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get short here that's not really that
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much movement so if you're going to take
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something off your trade below that low
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why not just try to reach for that one
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and you could get it there right here
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okay and then below that low is nice as
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well this is below the 50 level of this
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high and that low okay okay so 50% level
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that's what we targeting now this
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candle's low was the high end or first
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objective inside this Gap so that's your
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target you're going to look for that so
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you're looking for low hanging fruit the
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easiest Target to get to you're not
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trying to be perfect and you grow into
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eventually holding to see if it will
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fill in that Gap okay this Fair B Gap
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was going down to this candle's High
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that's something that you strive for
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over time if you understand what I just
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showed you here that's a very simple
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process of looking for number one
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liquidity gauging what happens without
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having to know for certain because you
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don't know you're not going to know
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until the market shows its hand this is
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it showing its
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hand now let's go into a one minute
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chart and see how that looks a little
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bit different but still has the same
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characteristics here's that same price
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structure just on a one minute chart the
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same logic still there right swing High
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taken after liquidity has been traded
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into this short-term High gets violated
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right when this trade down in here
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what's actually occurring okay put this
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in your notes high frequency algorithms
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are hammering they're just throwing
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orders in buy buy buy buy buy that is
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not okay here's an important thing that
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is not causing the market to go higher
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it's just volume that's coming in the
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algorithms that deliver price that offer
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price that are constantly offering price
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in the
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marketplace that's what's beginning to
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spool and go higher okay and regardless
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of where you want to trade at your limit
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orders they may not get filled where
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you're trying to buy with a market order
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you may think you're getting in at
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14662 but by the time your order is
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executed and confirmed you're in
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14664 that's slippage okay that's
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negative slippage if you were trying to
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buy it at
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14662 and it filled you at 14661 that's
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positive slipage that's better than what
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you were expecting
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so when price starts to Rally all this
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is is a default to the algorithm
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constantly offering price at a higher
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price so we're looking at the swing low
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right here Market breaks down trades
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break back up into this back up in this
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fair value Gap here and sells off and
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there's another fair value Gap right
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there trades up into that as well this
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is a one minute chart so it's giving you
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multiple points of execution that you
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could trade on and then Dives see these
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two candles here that's one consecutive
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bearish order
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block the opening price extending out in
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time why is this a good bear shoulder
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block because it has that
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Gap and it's taking
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liquidity and there's a market structure
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shift there's your high frequency high
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power high probability bearish order
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block what it is it's a change in the
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state of delivery the Market's being
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offered higher higher higher higher in
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these two up closed candles how did this
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series of up closed candles begin with
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this candle's opening right there that
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opening once this candle trades below it
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that changes the state of delivery so
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you go back to that point of reference
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right there and that's why it's
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sensitive the algorithm remembers that
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right there okay that's all I'm going to
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give you on the Free mentorship level
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but that is your answer okay that is
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what an order block is it is a change in
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the state of delivery much in the same
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way all of this movement down here all
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these down closed candles the opening on
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that candle starts the series of
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delivery on the downside when that
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opening price gets violated here it
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changes its state of delivery now it was
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offering sell side when it goes above
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that opening now it's offering buy side
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what will it be doing after that it'll
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be looking for buy stops buy stops buy
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stops because it's offering buy side
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liquidity same thing here buy side is
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being offered until that opening price
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is violated right there then the change
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of state of delivery occurs now the
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Market's going to be doing what offering
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sells side liquidity what's that mean
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it's going to start going lower and
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attacking the sell stops all the sells
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side liquidity it's offering it to the
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marketplace that's what's happening
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that's what the algorithm is doing but
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the market goes down to that 50% level
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because it's going down to what but I
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teach you what did I say in the first
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video it's going down from a premium
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Market relative to this low in this High
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50% is here that's equilibrium so it's
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going to go down to a discount and
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that's that Gap right here it doesn't
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look like a gap so much here but if you
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go back up one more time that's that
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single opening right there on a
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two-minute chart and then on a one
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minute chart it's two candles that make
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that up but you're going to have to do
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is go through a progression of going
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from the 3 minute 2 minute and one
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minute chart and you'll get your Market
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structure and your areas of where it
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wants to look for an imbalance or old
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low old high and it just makes it easy
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and here's the lipstick on it on the one
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minute
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chart swing high is broken Market
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structure is now
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bullish rallies taking buy stops taking
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buy stops taking by stops this right
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here these highs right here is just
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staying below that low it's building up
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more interest that this is what
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resistance that is engineering liquidity
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that way when this runs above it those
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individuals that know what you're
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learning today they know that that's a
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pull of liquidity for buyers coming in
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at a high price why is that useful
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because smart money they bought down
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here or here or here or here or here
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that's where they sell to high seeking
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buyers real nice delivery here as well
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filling that fair value Gap change in
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the state of delivery now it's offering
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sell side what's that mean it's going to
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match up sell stops it's going to keep
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going below old
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lows into an imbalance until we get down
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to a discount so with that I want you to
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think about how this is useful number
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one you're looking at London highs and
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lows a session for London open okay for
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instance like 2:00 in the morning to
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5:00 in the morning New York time every
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every time I tell you just always set it
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with New York local time 2 o'clock to 5
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o'clock in the morning that's your
00:12:43
London session what's the highest in
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lows of that session okay that's
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important because the Market's going to
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probably sweep above those highs or
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sweep below those lows and create
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situations like this okay and the New
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York session is 7:00 in the morning to
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10:00 in the morning New York local time
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okay what's the session high and low for
00:12:59
that and do the same thing for Asia okay
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7:00 p.m. to 9:00 p.m. and that's it
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those are the three times of the day
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that I'm looking for specific key highs
00:13:07
and key lows and any intraday high and
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low forming right before the equities
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open at 9:30 pretty easy right the hours
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of operation again are generally between
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8:30 in the morning to 11:00 but it can
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be extended all way to New York lunch
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noon I do not tend to take trades after
00:13:22
noon local time New York uh that hour is
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usually very problematic and it's just
00:13:28
it's better not to even look for any
00:13:29
kind of setups wait until 1:00
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preferably really 1:30 to 4:00 then you
00:13:33
got the afternoon Trend typically you'll
00:13:34
see between 2:00 and 3:00 there's a
00:13:36
setup that usually forms in the
00:13:38
afternoon Trend or setup in the period
00:13:39
of the time of the day that will also
00:13:41
offer opportunities but that's outside
00:13:42
the scope of what I'm going to be
00:13:43
teaching in this mentorship all right so
00:13:45
we talked about internal range liquidity
00:13:46
and internal range liquidity is looking
00:13:48
for short-term lows or short-term highs
00:13:51
inside a price leg that we're retracing
00:13:53
back into okay that's all it means
00:13:54
internal range liquidity is a short-term
00:13:57
higher low with stops above below it or
00:13:59
an imbalance in that same range of price
00:14:02
action and I taught you Market structure
00:14:04
shifts showed you exactly all that's
00:14:06
necessary that is all that you require
00:14:08
and the skill set of identifying pools
00:14:10
of liquidity that is going to be
00:14:12
something you learn rather quickly just
00:14:14
by going through old data and looking at
00:14:15
the times of the day I gave you in this
00:14:17
lecture all right your homework is
00:14:18
you're going to go through your em mini
00:14:19
Futures intraday charts and you're going
00:14:21
be looking for stop hunts that lead to
00:14:23
Market structure shifts intraday you're
00:14:25
going to log your examples with your own
00:14:26
annotations for your study Journal so
00:14:29
what I showed with the break in the
00:14:30
market going higher and lower above old
00:14:33
highs or lower below and old low that's
00:14:34
running for stops that's a stop hunt
00:14:36
then you're looking for that signature
00:14:37
for the market structure shift on the
00:14:39
three two and or one minute charts okay
00:14:42
if you look for that between 8:30 in the
00:14:44
morning to noon New York local time in
00:14:46
the eem mini markets or if you're
00:14:47
watching the micro markets the same
00:14:49
logic exists okay but you're going to
00:14:51
start going back from today and go back
00:14:53
as far as the data will allow you and
00:14:55
you annotate your 15-minute time frame
00:14:57
for your buy side liqu pool and your
00:14:59
cide liquidity pools and then going down
00:15:01
into the 3 minute 2 minute one minute
00:15:02
chart so for every individual day that
00:15:04
you're logging and you're back testing
00:15:05
back testing is just Dressing Your Chart
00:15:07
out like I'm showing you here and then
00:15:08
studying it not just do it until account
00:15:10
done really go into to see how price
00:15:12
moved and how it
00:15:14
[Music]
00:15:23
delivered
