2022 ICT Mentorship Episode 2 Elements of a Trade Setup — Transcript

Full transcript

1. 0:00All
2. 0:13right, folks. Well, we're here.
3. 0:17So, technically, this is the first
4. 0:20teaching. Uh, I gave you guys an
5. 0:22introduction video, obviously. If you
6. 0:23haven't watched that one yet, go to the
7. 0:24playlist on my YouTube channel and
8. 0:27please watch that one because it'll help
9. 0:29at least establish the
10. 0:31in my opinion the proper expectations.
11. 0:34That way you understand what you're
12. 0:35getting involved with here and at least
13. 0:38it gives me a chance to kind of like
14. 0:39break the ice and show you the contrast
15. 0:43of what you may be expecting versus what
16. 0:45I intend to deliver.
17. 0:48All right, so this first installment is
18. 0:49going to be elements to a trade setup.
19. 0:52All
20. 0:55right. So,
21. 0:58coming out of the gate, I just want to
22. 0:59let you know that this is predominantly
23. 1:01going to be a futures index trading
24. 1:05mentorship. Okay?
25. 1:08The idea is going to be presented in the
26. 1:10scope of paper trading on
27. 1:14tradingview.com.
28. 1:16But what you're looking at here, this is
29. 1:19Thinker Swims live data. These are
30. 1:22actual executions I made today. And I
31. 1:24want you to compare and contrast with
32. 1:26what you see on YouTube and other
33. 1:29educators where they'll
34. 1:32tout that they can do this, they can do
35. 1:34that. But really, I want you to compare
36. 1:37and contrast what you see here. All
37. 1:39right. So, we're looking at intraday
38. 1:41price action for NASDAQ E- Mini futures.
39. 1:46And this is actually uh the the main
40. 1:49focus of this mentorship. Okay. Um, I
41. 1:52believe that this market is worth
42. 1:57studying. I believe it is not just
43. 1:58limited to NASDAQ, but I believe it's
44. 2:02useful
45. 2:04to learn as a
46. 2:07trader that views obviously the E- mini
47. 2:09S&P, the E- mini Dow future, and the E-
48. 2:13mini NASDAQ. Now, the E- mini NASDAQ is
49. 2:15a little bit faster, a little bit more
50. 2:17aggressive.
51. 2:19And
52. 2:20even with that, you can still trade it.
53. 2:22So,
54. 2:24I want you to think about what it means
55. 2:27to watch price action and understand
56. 2:29what it's likely to do before it does
57. 2:31it. Now, I'm not promising you're going
58. 2:33to be able to do that right out of the
59. 2:34gate. What I'm going to show you is the
60. 2:38compare and contrast to how I can trade
61. 2:41versus what I'm promising to teach you
62. 2:44in this mentorship. How to find specific
63. 2:46setups in your demo account, okay? Or
64. 2:49your paper trading account. I'm not
65. 2:51trying to entice you to trade with live
66. 2:53funds, okay? So that way we know this
67. 2:55going in.
68. 2:57The teachings will be predominantly
69. 2:59through the scope of tradingview.com's
70. 3:01paper trading module or just hindsight
71. 3:05data. Now, I already know some of you
72. 3:08are, oh, here we go, the hindsight guy.
73. 3:10[laughter]
74. 3:11Well, what you're looking at here is
75. 3:13actually live executions from today.
76. 3:16Okay? And I want you to think about if
77. 3:18you were able to trade a micro account
78. 3:22and you were trading the NASDAQ and you
79. 3:26were able to capture just one of these
80. 3:29moves. Which one would you like to
81. 3:32learn how to find? Obviously, you
82. 3:34probably look at this and think, well,
83. 3:35I'd like to do all of them, but I want
84. 3:37you to think about which one really
85. 3:39stands out
86. 3:41off the entire chart. And this is a one
87. 3:43minute chart. Which one really stands
88. 3:46out? I'll give you a moment. You can
89. 3:48pause the video and unpause it when
90. 3:49you're ready.
91. 3:53Some of you folks never ever pause it.
92. 3:57All right. So, obviously we can see how
93. 3:59the market moves from here. Okay. Two
94. 4:03orders executed here. Whenever you see
95. 4:05this, this is actually a reversal. So if
96. 4:09there is a trade on long, it'll reverse
97. 4:13and take you the other direction. Okay?
98. 4:15And then this one here, this is a
99. 4:17reversal as well.
100. 4:20Then a another close, and then another
101. 4:24long entry, the exit, a short entry, and
102. 4:28then the cover. Okay? I'd like for you
103. 4:31to consider what it would take for you
104. 4:32to find consistency and how many
105. 4:35handles, how many full
106. 4:38handle moves in an index futures
107. 4:41contract that would satisfy you. When I
108. 4:44say a handle, that's essentially four
109. 4:46ticks, the minimum fluctuation in these
110. 4:49markets. An example would be if you were
111. 4:52trading the E- Mini S&P and you were
112. 4:54trading obviously the 4450
113. 4:58level and you went long. If it went to
114. 5:004451, that's a full handle, okay? Or
115. 5:02four ticks or four times $12.50 50s or
116. 5:06$50 per handle. The NASDAQ is $20 per
117. 5:10handle. So, it's slightly different, but
118. 5:13it's faster. It moves a lot more. Lot
119. 5:16more handles, a lot more aggression.
120. 5:19Now, it doesn't always move faster.
121. 5:22Sometimes we'll have a lethargic price
122. 5:25action in this indicy or another out of
123. 5:28the three. That would be the S&P, the
124. 5:31NASDAQ, and the Dow.
125. 5:34I personally don't trade the Dow that
126. 5:36much, but there's a lot of my students
127. 5:38that love trading the YM, but YM is the
128. 5:41symbol for the futures contract. And
129. 5:43these three markets have the luxury for
130. 5:47you that may not have the capability to
131. 5:49put up to like $17,000
132. 5:51margin if you were going to trade one
133. 5:52full contract of the NASDAQ futures. Um,
134. 5:55most brokers, unless you're using a
135. 5:56discount broker, they're going to
136. 5:58require you to have deep pockets in
137. 5:59sense that you're going to have that
138. 6:00about $17,000 and about 12,000 and a
139. 6:04half for an E- mini S&P full futures
140. 6:07contract. Okay,
141. 6:09you take basically
142. 6:12a fraction of that and you can trade a
143. 6:15micro on each one of these markets, but
144. 6:17obviously it reduces the number of the
145. 6:21tick multiplier because you're trading
146. 6:23with a lot less technically leverage.
147. 6:26So, I'm going to get into all that, but
148. 6:28I just kind of like want to begin the
149. 6:31conversation informally, but also just
150. 6:34kind of like show you what it is that I
151. 6:36do versus
152. 6:39what other people do. Okay? So,
153. 6:43I'm not trying to,
154. 6:45you know, point my finger at anyone in
155. 6:47particular, but if you look around on
156. 6:49YouTube, there are people out there that
157. 6:52try to make a big stink about themselves
158. 6:54and they'll try to show
159. 6:57results that may or may not be real. I'm
160. 6:59not here to disparage that. They could
161. 7:01be actually trading a live account. I
162. 7:03don't personally care, but anyone that
163. 7:05trades on Think or Swim, they can
164. 7:06recognize this chart right away. I
165. 7:09posted a results and updated u
166. 7:12reflection on the thinker swim or TDM
167. 7:15air trade account and it's on my
168. 7:18community tab. I promise I won't beat
169. 7:20you up too much with the community tab,
170. 7:22but that's my way of reaching out to
171. 7:24you. So, if you subscribe to the channel
172. 7:26and then when you subscribe to the
173. 7:28channel, you want to toggle all
174. 7:31notifications. You want to click that
175. 7:33little uh I think it's like a bell icon
176. 7:35and then all notifications. That way,
177. 7:38anytime I post on my community tab,
178. 7:40it'll let you know. Otherwise, it won't
179. 7:41let you know. So, it's it's my
180. 7:43replacement to Twitter, which in my
181. 7:44opinion sucks.
182. 7:48So, if we look at the eb and flow of all
183. 7:52this here,
184. 7:54where the market's trading up and
185. 7:57between here and here, it's not a small
186. 8:02number of handles. It's a pretty
187. 8:04respectful amount of handles. It's not
188. 8:07a couple a handful and then up here it's
189. 8:10a reversal and then it comes back down
190. 8:13and I buy it back here in reverse. So,
191. 8:15I'm selling short here
192. 8:18and I'm buying long here.
193. 8:22740 to 720. That's 20 handles. Going
194. 8:26long here at 720. I'm abbreviating the
195. 8:29number just for brevity sake. Getting
196. 8:32out at 732, 12 handles. Then going long
197. 8:37here
198. 8:40756 and then getting out at 784 and a
199. 8:44half then going short at 798 and
200. 8:48covering at 675.
201. 8:51So I'll ask you which one of these
202. 8:53trades do you think is the one that you
203. 8:55want to learn? Again putting all aside
204. 8:58the idea that you would probably want to
205. 9:00do all these but I'm not promising you
206. 9:02that. Okay. I'm going to take you into
207. 9:07how to find this setup here.
208. 9:10Notice the number of handles. I'm not
209. 9:12promising you're gonna get this many
210. 9:13handles, but the setups and the logic
211. 9:16behind it will help you find these types
212. 9:18of frameworks. Framework is the
213. 9:21foundation to a trading model. So, you
214. 9:24have to have an understanding what it is
215. 9:25you're looking for. And that's really
216. 9:27the only thing I'm introducing tonight
217. 9:28is the idea of what it is I'm promising
218. 9:32to educate you with. So that way you can
219. 9:34go in and find these setups on your own.
220. 9:36You will not need to be a slave to some
221. 9:40kind of blackbox system. You don't need
222. 9:43to be a part of some kind of signal
223. 9:45generating gimmick. You don't need to be
224. 9:48a part of a signal service. You can find
225. 9:50these on your own independent. That's
226. 9:53exactly what I'm trying to frame in all
227. 9:55of my students. I do that with my
228. 9:56mentorship students that paid me for
229. 9:58education. Now here you are in my
230. 10:00YouTube channel. I'm telling you the
231. 10:02same thing. I'm teaching independence.
232. 10:04That way, you're not requiring any
233. 10:06handholding by me. Once you understand
234. 10:08the rules and you go through the
235. 10:10processes and things I'm going to teach
236. 10:11you how to practice with, you will not
237. 10:14need anything except for the chart
238. 10:16itself. That's it. And that's how in my
239. 10:20opinion, and you can argue with this if
240. 10:22you want, but I could care less if you
241. 10:24could. Any of you would challenge the
242. 10:25idea that independent thinking is not
243. 10:27the best way of doing it. You want to be
244. 10:29able to be unshackled. Okay. And if
245. 10:31you're part of a signal service or if
246. 10:33you're part of a a approach that
247. 10:35requires you to use a
248. 10:38blackbox system, you're kind of held
249. 10:40captive, aren't you? So, if you look at
250. 10:43this, this chart
251. 10:46is clean. Except for these little
252. 10:48bubbles actually show you the
253. 10:50transactions. You don't really get any
254. 10:53kind of well
255. 10:58distortion from your reading of price
256. 11:01action. I don't have a lot of graffiti
257. 11:04on the chart. Okay. But the main
258. 11:05takeaway here is I want you to
259. 11:06understand that I don't hunt for three
260. 11:09to five handles and consider that
261. 11:10legendary. Okay. Now, can you be
262. 11:14profitable if you take high frequency
263. 11:17trades and you do those types of trades?
264. 11:19Absolutely. That's what alos do.
265. 11:21Algorithms do that. But I'm trying to
266. 11:24show you by contrast that there is a way
267. 11:27that you can find setups that are
268. 11:29outside that parameter of very small
269. 11:33little handles and doing lots of
270. 11:35contracts. So if you're looking at this
271. 11:36here and this was say your trading and
272. 11:40you're trading a NASDAQ micro account,
273. 11:43you're not making a lot of money on
274. 11:44these swings. Okay? I'm not making a lot
275. 11:48of money on these swings, but I'm able
276. 11:50to find these swings and it's not these
277. 11:53small little increments. Okay? I'm going
278. 11:57to teach you skill sets that focus
279. 11:59primarily on this. Okay? You want to
280. 12:01find a nice price leg intraday. I'm not
281. 12:05promising you how to buy, sell short,
282. 12:08buy, sell short, buy, sell short. That's
283. 12:11that's mine, okay? I'm not teaching
284. 12:13that. And I know some of you like, "Oh,
285. 12:15you're a jerk. you're this, you're that,
286. 12:16whatever. I didn't promise that. That's
287. 12:18why I set the stage in the first
288. 12:20introduction video, so that way we know
289. 12:22what it is I'm teaching you. If anyone
290. 12:25of you here don't want to learn how to
291. 12:27take this type of trade, you're welcome
292. 12:28to not continue and turn this video off
293. 12:30and go watch whoever, okay? But I think
294. 12:34if you give it a chance, you'll find
295. 12:36some amazing things that bring clarity
296. 12:39to reading price action.
297. 12:43>> [snorts]
298. 12:43>> All right. So, we're looking at the
299. 12:45NASDAQ futures March delivery contract.
300. 12:48And this is a Trading View chart. And if
301. 12:50you've never used tradingview.com, the
302. 12:52way you would pull this symbol up is NQ
303. 12:56H2022.
304. 12:58Okay? And this is a weekly chart. And I
305. 13:01want you to think about each week before
306. 13:04the new trading week begins, preferably
307. 13:07on the weekend. Okay?
308. 13:09The idea is you want to try to get a
309. 13:11read on what you think that next weekly
310. 13:13candle is going to do. Is it going to go
311. 13:15higher or is it going to go lower?
312. 13:18You're not trying to predict the close
313. 13:20of the weekly candle. That's important.
314. 13:23Okay? You just want to see before this
315. 13:25weekly candle opened up, all we had was
316. 13:28this indecisive candle. Okay? Do you
317. 13:31think that this candle that would have
318. 13:33formed and opened here is more likely to
319. 13:36go higher or lower?
320. 13:40Obviously, with the benefit of hindsight
321. 13:42here, but I can tell you all of my
322. 13:44students know we've been looking for
323. 13:45lower prices and I'll just give you a
324. 13:47quick short list as the reasons why.
325. 13:49Number one, seasonality. Okay, seasonal
326. 13:51tendencies. It tends to go down around
327. 13:53this time anyway. We also have
328. 13:56discussions about how the Fed's going to
329. 13:58raise interest rates. stock market does
330. 14:00not like that. We're also in earnings
331. 14:02season. There's a lot of volatility
332. 14:04because of earnings and those factors
333. 14:08plus the underlying tone of the
334. 14:10marketplace which I'll show you when we
335. 14:11get into the daily chart. It just well
336. 14:14it's heavy and this is where it was
337. 14:16going to draw to. Okay. Did I expect
338. 14:19this entire range to be delivered in one
339. 14:21week? No, that's not important. The
340. 14:24point is I'm expecting the weekly candle
341. 14:27to expand on the lower end. Okay. Or go
342. 14:29down and gravitate towards this low,
343. 14:32which it hasn't broken yet, but I think
344. 14:34that's what we're probably going to aim
345. 14:35for on Sunday's opening going into
346. 14:36Monday's trading. So, that's where I
347. 14:38think it's drawing to,
348. 14:41and that's the component I want you to
349. 14:43focus on with your analysis. What is the
350. 14:46market likely to draw to? When I say
351. 14:48draw to, think of it as
352. 14:51price being a paperclip, okay? And then
353. 14:55you you have this magnetic impulse that
354. 14:58specific price levels and seasonality,
355. 15:02okay, will
356. 15:04put on price. It'll cause price to
357. 15:07gravitate towards certain levels. And
358. 15:09the measure of speed and magnitude that
359. 15:12it moves to get to these levels, you
360. 15:14learn that over experience. That's not
361. 15:16something I can transfer. It's something
362. 15:18you have to practice and see and study
363. 15:20and you get a rhythm for it. Okay? Every
364. 15:22educator knows what I mean by that and
365. 15:24every student that's been trained
366. 15:25successfully by any other educator will
367. 15:28not understand exactly what I mean by
368. 15:29that. You just get a feel for it. It's
369. 15:31experience. There's no way of defining
370. 15:32outside of that.
371. 15:35In the early stages of your development,
372. 15:37you want to at least try to focus your
373. 15:39attention on where that weekly candle is
374. 15:41going to do. Now, here's the thing. It
375. 15:43may start the first half of the week or
376. 15:45maybe just one day expand lower. And if
377. 15:48you get a setup in that, that's it.
378. 15:50You're done.
379. 15:51That's how you start working towards
380. 15:53consistency. No student ever should try
381. 15:56to trade every single session, every
382. 15:59single day because the only thing you're
383. 16:01doing is building an expectation that
384. 16:04you're going to be able to do this every
385. 16:05single day profitably. And then if you
386. 16:07do get a run of profitability, soon as
387. 16:10you get a losing trade, it's going to
388. 16:11blow your mind and you're going to want
389. 16:13to correct it quickly and you're going
390. 16:15to start making irrational decisions and
391. 16:17then you enter that loser cycle I've
392. 16:19talked about many times in the YouTube
393. 16:21channel. So the only thing you're
394. 16:23looking for is a likely
395. 16:27movement higher or lower based on the
396. 16:29weekly candle. Okay, that's all you're
397. 16:31doing. That sets your initial bias for
398. 16:34the week.
399. 16:36On the daily chart, you're looking for
400. 16:37swing highs and swing lows to get your
401. 16:39liquidity. And majority of your trading
402. 16:43and the draw on liquidity, what makes
403. 16:46the market go higher or lower, it's
404. 16:48predominantly found on this time frame.
405. 16:51Okay? So, majority of your analysis
406. 16:53should really be linked to this time
407. 16:55frame right here. You have to have an
408. 16:57assumption
409. 16:59whether you're going to be expecting
410. 17:00that weekly candle to expand higher or
411. 17:02lower. That's your weekly bias. But then
412. 17:04you have to go into the daily chart and
413. 17:06figure out basically where you are in
414. 17:08the grand scheme of things on that
415. 17:09weekly range expanding higher or lower
416. 17:13because we're looking for lower prices
417. 17:14and we're looking for weakness.
418. 17:17The expectation is we want to see every
419. 17:19short-term low
420. 17:22like this would be a short-term low.
421. 17:23This will be a short-term low and
422. 17:25underneath those lows is going to be
423. 17:26sell stops. Okay, that's liquidity.
424. 17:30When I say learn to start looking for
425. 17:33where the market's going to draw to,
426. 17:35it's drawing to one of two things. Okay?
427. 17:38It's drawing to stops, which is
428. 17:40liquidity, or it's running to an
429. 17:43imbalance. Now, what's that mean?
430. 17:47Above old highs, buy stops. Below old
431. 17:51lows, sell stops.
432. 17:54imbalances is something like this over
433. 17:56here where we have one single candle
434. 17:58pass higher and the previous candle's
435. 18:00high is here and the next candle's low
436. 18:02is here. So it only went up one candle,
437. 18:05nothing moved down the overlap with that
438. 18:07same delivery on that price candle
439. 18:10there. So in other words, that's an
440. 18:12imbalance. It's only going higher and
441. 18:14nothing else is here to offset that and
442. 18:18efficiently deliver price on the
443. 18:20opposite end. Now, you probably heard of
444. 18:22the theory auction theory, okay? And
445. 18:26folks hear me try to communicate some of
446. 18:29these things and they'll run away with,
447. 18:31"Oh, he's just talking about auction
448. 18:32theory." And it's not. Just like when
449. 18:34they see me do a rectangle or a box on a
450. 18:36chart, and you'll see one in this video.
451. 18:38It's not supply and demand, okay? It's
452. 18:40just what it is. You'll see it and
453. 18:43you'll know right away after you've been
454. 18:44with me for a couple weeks that this is
455. 18:46entirely unique and there's nothing else
456. 18:48like it. And I'm certain majority of you
457. 18:51are going to fall in love with this
458. 18:52model.
459. 18:53So, we're looking for lower prices.
460. 18:55We're looking for an expansion. I'm
461. 18:57using the benefit of hindsight, but I
462. 18:58can promise you again, this was
463. 19:00discussed. We were looking for lower
464. 19:02prices in my paid group. And if I did
465. 19:04not say that, I have a lot of students
466. 19:06that are making YouTube channels. They
467. 19:07are welcome to come out and say I'm a
468. 19:08liar. So, we're looking at the daily
469. 19:12chart. We're going to drop down into the
470. 19:14hourly chart. Okay. Okay. Now, what I
471. 19:16have here is a framework for looking at
472. 19:19the weekly range on an hourly chart. So,
473. 19:21all I did was beginning on midnight New
474. 19:24York time, Monday's candle, and then
475. 19:28Friday's close, and then the beginning
476. 19:30of Friday's trading at midnight. Okay.
477. 19:32Now, what I'm delineating here is the
478. 19:35fact that we had a nice sell-off on
479. 19:37Thursday
480. 19:38and the market went into consolidation
481. 19:40overnight.
482. 19:42Notice what happens here on Friday. This
483. 19:45is that old low on the daily chart.
484. 19:47That's what we're thinking or assuming
485. 19:49that it's going to draw to because that
486. 19:52daily chart there's lots of liquidity
487. 19:54and large fund traders, large
488. 19:57institutional traders, institutional
489. 20:00mindset investors will be looking at
490. 20:03these old lows and old highs and
491. 20:08liquidity providers will be looking to
492. 20:10take business in around these same
493. 20:13levels. So, if we know that this level
494. 20:16down here is the old daily low, and
495. 20:19again, let me take you back up to the
496. 20:20chart on the daily chart. That's this
497. 20:22low right here. Okay? By dropping down
498. 20:24into the hourly chart, that level is
499. 20:26here. All I'm doing is transposing those
500. 20:29daily levels right to this hourly chart.
501. 20:32The entire week has been bearish. Okay?
502. 20:35It's been going lower since the
503. 20:37beginning. Then, we had consolidation in
504. 20:40here.
505. 20:41The market creates this short-term high
506. 20:44and this short-term low. What rests
507. 20:46above that short-term high, if you've
508. 20:48taken notes and been paying attention,
509. 20:49it's buy stops. What's resting below
510. 20:52this low here? Sell stops. Watch
511. 20:55closely. The market trades down
512. 20:58initially and takes out the sell stops.
513. 21:01Why would it do that? First,
514. 21:04this is inducing shorts. Okay? So it
515. 21:07engineers liquidity even if
516. 21:11the idea is that they want to take the
517. 21:14market down to this level. If it's been
518. 21:16consolidating,
519. 21:19I like to see them do this type of move
520. 21:21here where it drops down first. It's
521. 21:24kind of like a sucker play. Anybody that
522. 21:26has a sell stop below here, they want to
523. 21:27sell on weakness. They're going to get
524. 21:30tripped into the marketplace. So now
525. 21:31they're triggered in short and then they
526. 21:33start doing a run against those traders
527. 21:36and against those that were already
528. 21:39short from this high. So what are they
529. 21:41doing? The market's being driven higher
530. 21:44and the algorithms are going to attack
531. 21:46that buy stop liquidity pool. Why would
532. 21:48they want to do that? Number one, it's
533. 21:50going to punish those individuals here
534. 21:52that went short.
535. 21:54When it drives above this high here, it
536. 21:58sends all those spy stops into
537. 22:02market orders flooding the marketplace.
538. 22:04That gives a huge influx of willing
539. 22:08buyers at a high price, which is the
540. 22:10perfect counterparty to smart money that
541. 22:13wants to sell at a high price. Remember,
542. 22:15the market wants to go down here. So
543. 22:17when it dries up to here, those buy
544. 22:21stops are the counterparty or the other
545. 22:23side of a smart money trader that's
546. 22:26wanting to go short because they're
547. 22:28going to sell short. They got to sell it
548. 22:30to somebody wants to buy at a high
549. 22:31price. That's why the market does this.
550. 22:34Okay, in your notes, you want to record
551. 22:37anytime a significant price move lower
552. 22:40is expected, always anticipate some
553. 22:42measure of a stop hunt on buy stops or a
554. 22:45short-term high being taken out.
555. 22:46Obviously, it's reversed when you're
556. 22:49looking for higher prices. Generally,
557. 22:52you'll see a short-term low taken out
558. 22:54and sell stops taken before you see a
559. 22:56very pronounced rally higher.
560. 23:00Don't take my word for it. Go through to
561. 23:02your charts and you'll see it's actually
562. 23:03occurring almost on a daily basis. So,
563. 23:06we're going to drop down into a
564. 23:0815-minute time frame. So that same old
565. 23:11low level down here and that high I just
566. 23:14mentioned on the hourly chart and the
567. 23:15low on the hourly chart is now been
568. 23:18defined with a small little line
569. 23:19segment. Okay. So we have a trend line
570. 23:21here and a trend line here. That's the
571. 23:24extent of a trend line. That's it. I
572. 23:25only use them to highlight to my
573. 23:27students. These levels are not on my
574. 23:29chart. I'm watching a naked chart. Okay.
575. 23:34you while you're developing, you should
576. 23:36have these levels drawn out on your
577. 23:37chart because it helps you build and
578. 23:40ingrain the idea that this is where
579. 23:41liquidity is. It keeps you focused on
580. 23:43that because it's easy to look at all
581. 23:45these candles forming if you have the
582. 23:47luxury of watching it in life and you
583. 23:49can lose sight of where you are and you
584. 23:51once you lose your bearings it's really
585. 23:54confusing and this helps you keep those
586. 23:56bearings in mind and what do I mean by
587. 23:58that? Well, I mentioned how the market
588. 24:00dropped down initially and that takes
589. 24:02the sell stops out. So, sellside
590. 24:05liquidity has been attacked. Traders are
591. 24:08now tripped in going short if they sold
592. 24:10on a break trying to be a breakout
593. 24:12artist. And then the algorithms go right
594. 24:14back up to an area where it's been
595. 24:16cleanly delivered relative equal highs.
596. 24:19See how this high here right before it
597. 24:20dropped is basically the same high here.
598. 24:23Notice that. So retail traders see this
599. 24:26and they trust it as what? Resistance.
600. 24:30So the books always say put your buy
601. 24:33stop if you're going to go short right
602. 24:35above a clear level of resistance. Well,
603. 24:38these levels work for a short period of
604. 24:40time, but majority of the time you see
605. 24:43this event right here. And this is how I
606. 24:44teach my students to go in there and
607. 24:46look for those types of events. Because
608. 24:47what did I just tell you moments ago
609. 24:49about looking for significant price
610. 24:51moves? Before there's a significant
611. 24:53price move of any real magnitude or
612. 24:55importance,
613. 24:57generally there's going to be a stop
614. 24:58hunt that takes place right before that
615. 25:01price delivery occurs. So what does it
616. 25:03look like? You have relative equal
617. 25:05highs. This high and this high. The
618. 25:07market goes up when we're what? We're
619. 25:09expecting lower prices on that weekly
620. 25:11chart. We're on the last day of the
621. 25:12week. It's already been heavy. It's
622. 25:14weak. And the only thing it's been doing
623. 25:16is consolidate. And the first thing it
624. 25:18did was broke out to the downside.
625. 25:20tripping what traders in a breakout to
626. 25:23go short. So now they have traders
627. 25:26caught on the wrong side offside and now
628. 25:28they want to take the market up here
629. 25:30where those buy stops are going to be
630. 25:32resting for those that were smart enough
631. 25:33to sell short here or here and didn't
632. 25:36get out below here. So the larger pool
633. 25:39of liquidity is going to be resting here
634. 25:42because it's in sync with the downtrend.
635. 25:44And everybody that was short the day
636. 25:45before,
637. 25:47they seen this high form and once it
638. 25:49broke below this low here, they all
639. 25:51rushed and trailed their stop loss right
640. 25:53above that. And I understand if you're
641. 25:56new and you think, well, this is easy to
642. 25:58explain in hindsight, but I want to
643. 26:00remind you, go back and look at the
644. 26:01first slide I showed you. Those were
645. 26:03actual entries. That's a live account
646. 26:05through thinker swim Charles Swab. That
647. 26:08was the clearing firm that did the
648. 26:09broker side of the business. Okay? So,
649. 26:13I'm not showing you a demo account. I'm
650. 26:14not showing you paper trading. That
651. 26:16those were real entries, okay? They were
652. 26:19real reversals, the whole business. But
653. 26:20the main thing was I showed you that
654. 26:22larger trade. This is going to be the
655. 26:24framework that I'm teaching you how to
656. 26:26find it, okay? But this pool of
657. 26:28liquidity, once this occurs, you want to
658. 26:31drop down to your lower time frames and
659. 26:32start looking for something specific.
660. 26:34And let's go into these lower time
661. 26:35frames and find out what that is.
662. 26:38Okay, here's a two-minute chart. Why a
663. 26:40two-minute chart? Well, 2 minute, 1
664. 26:43minute or 3 minute or five. Five minute
665. 26:46still has a lot of room for imbalances
666. 26:49to occur underneath that time frame. And
667. 26:51what I mean by that, the 1 minute, 2
668. 26:54minute, 3 minute chart tends to be the
669. 26:58best for finding the imbalances for
670. 27:01indices. Okay, don't take my word for
671. 27:03that. Okay, if you're looking for high
672. 27:04frequency setups intraday, the one, two,
673. 27:06or three minute chart are just
674. 27:09beautiful. They just offer a real good
675. 27:11clarity. The reason why because the high
676. 27:14frequency trading algorithms are
677. 27:16operating on nothing really higher than
678. 27:183 minutes, but majority of the time
679. 27:20they're like seconds. Okay? 15-second,
680. 27:2330-cond, 45sec, 60-cond intervals, okay?
681. 27:26And what they're looking for are these
682. 27:28small little imbalances. And what does
683. 27:30that look like? Well, we had that run on
684. 27:33the buy stops here. Okay? Remember that
685. 27:35old high here, the old high here, old
686. 27:38high here. it runs right on through
687. 27:40that. Once this occurs on that higher
688. 27:43time frame, 15-inut time frame,
689. 27:46you want to drop down to the lower time
690. 27:48frames. And I'm using the two-minute
691. 27:49chart because this is exactly what I was
692. 27:50using to find that imbalance and trade
693. 27:53off of it. Okay?
694. 27:56The market creates a short-term low here
695. 27:58and then it breaks below that. This is
696. 28:00key. This is called a break in market
697. 28:03structure. Now the foundations and
698. 28:05underlying framework is we're in a
699. 28:07market that's what weekly bearish. We're
700. 28:11expecting that weekly candle to expand
701. 28:12lower. It's been expanding all week. So
702. 28:15we have momentum on our side.
703. 28:18We have a consolidation that's occurred
704. 28:21and we had to pull liquidity engineered
705. 28:22with these relative equal highs and the
706. 28:24market broke out to the downside first
707. 28:26and then they ran on the highs. So once
708. 28:30it went here, we don't rush in there and
709. 28:32just go short because it went above old
710. 28:34highs. We're looking for some specific
711. 28:36signature that tips its hand to you,
712. 28:39okay? And I promise you, when you start
713. 28:41going through your charts, and it's
714. 28:42going to be homework for you, you're
715. 28:43going to see this occurring almost every
716. 28:45single day. And if it's not doing it
717. 28:47this way, it's doing it the opposite
718. 28:48direction as a buy. Okay? Again, don't
719. 28:50take my word for it. You're going to be
720. 28:52flabbergasted. You like that?
721. 28:54flabbergasted when you see how many
722. 28:56times this thing forms every single
723. 28:59week. Okay, it's many times throughout
724. 29:02the intraday charts it creates this type
725. 29:04of move. But it runs the stops, then we
726. 29:07have a short-term low and then it breaks
727. 29:09below it. So now we have a break in
728. 29:10market structure. Okay, once this low is
729. 29:13broken, you're going to look for this
730. 29:16little area here. That's that imbalance
731. 29:18I mentioned in the beginning, right? So,
732. 29:20what's happening is the market's going
733. 29:21to go right up inside that area there,
734. 29:24and that's where you want to sell. Now,
735. 29:26if you don't sell there, you can drop
736. 29:28down to a lower time frame, one minute
737. 29:30chart. If this was a three-minute chart,
738. 29:31you can go down to one minute chart and
739. 29:33look for that to occur on that time
740. 29:35frame as well. And it many times will
741. 29:37form, if you're looking at a lower time
742. 29:38frame, like say this was a 5-minute
743. 29:40chart and you looked at a one minute
744. 29:41chart, you'd find one down in here. It's
745. 29:43a matter of scaling down in your time
746. 29:45frames because once you have an
747. 29:47underlying premise to the market now
748. 29:50likely to go lower, it becomes an easy
749. 29:53thing to look for these types of things.
750. 29:55So in your chart, once you're developing
751. 29:59this idea and and learning it, you're
752. 30:01going to highlight this candle's low,
753. 30:03this candle's high. And this right here
754. 30:04is what I teach my students as a fair
755. 30:06value gap. Okay? You don't have that in
756. 30:09books, okay? You don't have any of that
757. 30:10kind of stuff out there. It's something
758. 30:11I introduced back in 2016 and obviously
759. 30:16a lot of people discovered how good it
760. 30:18is and they try to make courses with it.
761. 30:20But I'm going to not touch that right
762. 30:23here. But [snorts] the idea is once it
763. 30:26go up into that imbalance there and once
764. 30:28it does that soon as it enters that area
765. 30:32the algorithm that delivers price. Now
766. 30:36some of you may not know what that means
767. 30:38and some of you may not even agree with
768. 30:39it. You may think that this is made up
769. 30:42or it's contrived. I promise you, if you
770. 30:44spend time with this, you're going to
771. 30:46quickly come to the conclusion that
772. 30:47there absolutely is an algorithm and
773. 30:49it's manipulating the markets every
774. 30:51single day. Every single tick, it's
775. 30:53completely controlled. Okay? Period.
776. 30:55You're led to believe it's buying and
777. 30:57selling pressure. Now, if I go back and
778. 30:59use that analogy where it went down here
779. 31:01first, then go up here. Some of you may
780. 31:03argue, see, that's the buying and
781. 31:05selling pressure. No, it's not. It's
782. 31:06liquidity. Now, you may argue and say,
783. 31:08"Well, we're arguing semantics." No, I'm
784. 31:11telling you what's going on. This is the
785. 31:12logic. This is how these markets book.
786. 31:14Okay?
787. 31:16Once you see these patterns over and
788. 31:18over and over again, it's very easy to
789. 31:21execute on them. But the impulse to want
790. 31:23to do it the first time you see it
791. 31:25because you watch this video, that is
792. 31:27going to be problematic for you. So,
793. 31:29you're gonna have to do a certain number
794. 31:31of weeks and months of back testing.
795. 31:33There's no escaping that. You have to do
796. 31:35it. any skill set, any teacher,
797. 31:38educator, system, whatever, okay?
798. 31:40Whatever they're going to give you,
799. 31:42there's going to be some kind of growing
800. 31:43period where you have to trial and
801. 31:45error, fix the problems that you have
802. 31:48about yourself. And I've literally taken
803. 31:50your attention to a very specific
804. 31:52framework and setup. Notice that some of
805. 31:54you may think I'm still talking too
806. 31:55much, but I'm taking you right into the
807. 31:57heart of the matter. This is what it
808. 31:59looks like. This is what you're looking
809. 32:00for. Okay? These are the fingerprints of
810. 32:02that setup.
811. 32:05these repeat.
812. 32:07So, if you know what they are and what
813. 32:09those components are that make up this
814. 32:10setup,
815. 32:12you'll be able to find them. But focus
816. 32:15on the imbalance after the market
817. 32:17structure breaks. So, this big candle
818. 32:19here, it breaks down.
819. 32:21Look at the next candle. It opens and
820. 32:23trades higher and stops right there. So,
821. 32:25from this candle's low and this candle's
822. 32:26high, when this candle starts trading,
823. 32:28soon as it opens and it runs right up
824. 32:30into that, that's a short. You can go
825. 32:32right in there, sell short, be done.
826. 32:34Now, where is your stop going to be?
827. 32:37Well, you can put it above this high
828. 32:39here, or you can put it above this
829. 32:41candle's high, whichever your risk
830. 32:44parameters allow for. Okay. Um, if
831. 32:46you're trading the micro, which is
832. 32:49again, it's not a lot of money per tick.
833. 32:51So, the multiplier for that is very,
834. 32:53very small. If you trade the larger full
835. 32:57futures contract, and if it moves 100
836. 32:58points
837. 33:00and they can do it real quick, it can
838. 33:02burn you pretty bad. So, you may have
839. 33:05the leverage to trade with a discount
840. 33:07broker, okay? You may have the initial
841. 33:09margin to trade with a discount broker,
842. 33:11but you may not have the wherewithal and
843. 33:13the skill set to navigate this market.
844. 33:15And that's the only thing I'm trying to
845. 33:18provide here as an alternative because
846. 33:20there's a lot of individuals out there
847. 33:21that will promote the idea that you can
848. 33:23go out there with discount broker and
849. 33:24just clean up. Yeah, if you know what
850. 33:26you're doing, but you don't need a
851. 33:29discount broker to be profitable. Okay,
852. 33:33looking at this further, we're going to
853. 33:35look at the logic in here. And I want
854. 33:36you to think about after this forms and
855. 33:39you see that as your choice setup or
856. 33:41entry. If it starts to move lower,
857. 33:44you can still get in it. There's no
858. 33:47reason not to think that, you know, you
859. 33:49can't get in it here or in here. It's
860. 33:53close to or in close proximity to where
861. 33:55that area is as an entry. Once we take
862. 33:58out a low though, once that occurs, then
863. 34:00it becomes a matter of you're chasing
864. 34:03price. And if you try to get in,
865. 34:04especially if you like use a market
866. 34:05order, you may see it trade right to
867. 34:08this low and say, "Okay, now I believe
868. 34:10it's going to go down." You put a market
869. 34:11order and sell short. And then slippage
870. 34:12gets you down here. That creates a
871. 34:14larger area of risk that you have to
872. 34:16assume. And it's just it's problematic.
873. 34:18You want to learn to trust going short
874. 34:19when the market's going higher. And that
875. 34:22feels scary at first, but once you start
876. 34:23seeing this pattern form, it becomes
877. 34:26easy to trust it. And in fact that you
878. 34:28want to be doing that. You want to be
879. 34:29selling short expecting lower prices
880. 34:33right when the candle's going up. And
881. 34:35retail traders can't grasp that many
882. 34:37times. It's just like it goes against
883. 34:39the logic because they think I got to
884. 34:41have confirmation. All the books say I
885. 34:43have to have confirmation. And that's
886. 34:45somebody that's coming in late. That's
887. 34:47someone that doesn't have read price.
888. 34:49They can't really follow it. And usually
889. 34:51they're the people that will trade short
890. 34:53with additional shell you sell stops.
891. 34:55they'll put sell stops below the
892. 34:56marketplace and then that's the momentum
893. 34:58entry for them and it's kind of like a
894. 34:59no-brainer in fast markets it yeah it
895. 35:02works but if you don't know what you're
896. 35:03doing you try to do that in a market
897. 35:05that's consolidating or about to reverse
898. 35:07it hands you your backside. Okay. So, if
899. 35:12you're looking at this framework here
900. 35:13and we've taken the buy stops, we have
901. 35:14our entry pattern here. What would you
902. 35:17be looking for as a downside objective?
903. 35:20Well, I'm going to teach you the
904. 35:23liquidity matrix. Okay? And sounds
905. 35:25pretty cool, sounds neat and all that,
906. 35:27but watch what it is. This here is your
907. 35:29range. This is the low of the day, and
908. 35:32this is the high of the day thus far.
909. 35:34So, if we take that range and split it
910. 35:36from the low to the high to get the
911. 35:38midpoint, all of this can be determined
912. 35:39by a simple 50 level on a Fibonacci. So,
913. 35:42you drag your fib from this high down to
914. 35:44that low or vice versa and have your 50
915. 35:47level highlighted. Then, anything above
916. 35:50that 50 level, this is referred to from
917. 35:53an algorithmic stance as a premium
918. 35:56market. It means it's expensive. Now,
919. 35:59markets can stay in a premium for a
920. 36:00while and not go to a discount, which
921. 36:03would be below the 50 point. Okay? 50%.
922. 36:06Anything down here is a discount.
923. 36:09If you're bearish, if you're ever going
924. 36:10short, you want to look at the previous
925. 36:12range. Where are you at inside that
926. 36:14range? So, when this formed here, that
927. 36:17little fair value gap, once that formed,
928. 36:21you're thinking, okay, we are in a
929. 36:23premium. So algorithms will want want to
930. 36:26go to a discount. That's the opposing
931. 36:29side of the marketplace. So if it's
932. 36:31going short here, it's driving the
933. 36:33market lower. What does that mean? The
934. 36:35algorithm is going to start pricing
935. 36:37lower. You can have all the buyers in
936. 36:39the world come in. If the algorithm is
937. 36:41in a sell program and it's going lower,
938. 36:43it does not matter. It's going to repric
939. 36:45lower and lower. And then what will
940. 36:47happen is those buyers that may come in
941. 36:49with a huge influx of volume, they're
942. 36:51going to get crushed and they get
943. 36:53squeezed. You ever hear that term, oh,
944. 36:54this is a bear squeeze. This is a bull
945. 36:56squeeze. All that is an excuse for them
946. 36:58not to know why the algorithm is doing
947. 37:00what it's doing. That's it. That's all
948. 37:01it is. It's an out. Okay? I'm telling
949. 37:03you, this is what's really going on. So,
950. 37:06the market's moving from this premium
951. 37:07high, this specific entry point to a
952. 37:11level below the 50 of this range, this
953. 37:14low and this high. Now, I want you to
954. 37:18again go back and rewind the video once
955. 37:20we're done and look at that execution.
956. 37:23page where I showed you my entries going
957. 37:25back and forth, up and down, up and
958. 37:26down, and where I got out at, where I
959. 37:29got in at. Okay, I want you to think
960. 37:32about what below this level here, the 50
961. 37:35level. What is resting below here?
962. 37:42Sell stops. So now, think about the idea
963. 37:45of someone like you and I that would see
964. 37:48this ideal entry as a short. We have to
965. 37:50sell to get in that short. How do we get
966. 37:53out of that short? We got to buy it back
967. 37:55or cover it by buying.
968. 37:58Well, we're going to find willing
969. 38:00sellers at a low price relative to this
970. 38:02point here. They're willing already
971. 38:04sitting down there with their sell stops
972. 38:06right below that low.
973. 38:08Now, look closely. What else resides
974. 38:11right near that low?
975. 38:15Do you see it? Pause the video before I
976. 38:17show it to you because it kind of ruins
977. 38:19the experience because if you find it
978. 38:21and I don't tell it, it feels good.
979. 38:25Right there is that imbalance I
980. 38:27mentioned. Okay, it's only one single
981. 38:29candle passing up and the previous
982. 38:32candle's high and the next candle's low.
983. 38:33That area right there is an imbalance.
984. 38:36From this area here, it went down below
985. 38:38the 50 level and attacked these sell
986. 38:41stops and completely closed in this
987. 38:44imbalance. So every point of this
988. 38:45candle's high to this candle's low, that
989. 38:48range with the candle only going up,
990. 38:51that's a buy side imbalance.
991. 38:56It has to have an equal delivery to be
992. 38:59efficiently priced and booked by the
993. 39:01algorithm. It goes down and completely
994. 39:03closes it back in with down movement.
995. 39:05Notice the candle on this here opens and
996. 39:07then trades down. So it fulfills its
997. 39:09role of balancing the buy side offering
998. 39:12now the sell side offering. So that is
999. 39:14an efficiently delivered price move.
1000. 39:17Precision elements from the entry here
1001. 39:20down to here. Everything else after that
1002. 39:22for the rest of the day I didn't care
1003. 39:24about. Even though I had an objective of
1004. 39:26that old daily low, I wasn't expecting
1005. 39:29it to run into this particular day. And
1006. 39:33that's why I didn't participate anymore
1007. 39:34the rest of the day. In hindsight, I
1008. 39:36wish I would have left a small position
1009. 39:38on and just let it go. But you're going
1010. 39:41to have that. You're never going to be
1011. 39:42right about everything all the time,
1012. 39:43every single day. You're going to leave
1013. 39:45things on the table. You're going to get
1014. 39:46in too early. You're going to hold too
1015. 39:48long. You're not going to buy enough or
1016. 39:50you're not going to sell enough. There's
1017. 39:51always going to be some reasons why you
1018. 39:52didn't do something right. So, don't
1019. 39:53beat yourself up about it. Okay? But if
1020. 39:55you can find elements like this
1021. 39:57repeating in the price action, can you
1022. 39:59agree with me that that is amazing
1023. 40:02precision? And this is the logic I used
1024. 40:05to do that trade. the very trade that I
1025. 40:08showed you that was the largest one in
1026. 40:10the example of saying which one would
1027. 40:11you rather learn how to do.
1028. 40:14I basically just handed you an ATM
1029. 40:16machine. Okay,
1030. 40:19this repeats every single week. Every
1031. 40:24single week. Now, I want you to count
1032. 40:26the number of the handles in this move.
1033. 40:30Let's say you got in at uh well, this
1034. 40:32say you got in at 800 14,800. it started
1035. 40:36to go down. You trust it. Okay, we're
1036. 40:38going to go short. Ideally, you want to
1037. 40:40enter as it goes into that, but it's
1038. 40:41going to take time for you to trust
1039. 40:42that.
1040. 40:44But let's say you got in at 14,800.
1041. 40:48If you got out down here, like I did, I
1042. 40:50exited as it went right to the top of
1043. 40:51that range right here. This range here,
1044. 40:55that's the top of it. Once it went below
1045. 40:57that, that was it for me. That closed
1046. 41:00the trade.
1047. 41:02Is that five handles? Is that 10
1048. 41:04handles? Is that 20 handles? Is that 30
1049. 41:06handles? Is that 50 handles?
1050. 41:11No,
1051. 41:12it's overund and some.
1052. 41:15Now,
1053. 41:18let's assume for a moment that you get
1054. 41:21good at this or I get the inclination
1055. 41:24that I want to go to some kind of a deep
1056. 41:26discount broker and I go in and I do
1057. 41:29trades like this and I'm putting on 15
1058. 41:31to 25
1059. 41:32full futures contracts. What do you
1060. 41:35think the results are going to be?
1061. 41:40[snorts and laughter]
1062. 41:41Yep.
1063. 41:42So,
1064. 41:44not everything is going to be easy right
1065. 41:47away. And you're not going to be able to
1066. 41:49see these things happen just because you
1067. 41:51sit in front of the charts. You have to
1068. 41:53study and you have to practice. And by
1069. 41:55experience of looking at old moves and
1070. 41:57watching real price action as best as
1071. 41:59you can. And if you can't watch it live,
1072. 42:01Trading View has a replay button where
1073. 42:04you can watch the candles kind of form,
1074. 42:06but they're they're little stilted
1075. 42:09because it's not completely painting the
1076. 42:12candle. Okay? And you can't practice
1077. 42:14with entering like that. You can only
1078. 42:16just study how price moved and
1079. 42:19gravitated towards certain levels. It's
1080. 42:21the best thing you can have if you if
1081. 42:23you at least consider doing that much,
1082. 42:26that's good. But if you really want to
1083. 42:28take it to the next level and say you're
1084. 42:29running a business or if you're going to
1085. 42:31school or you have a job and you can't
1086. 42:33watch the time frame around the opening
1087. 42:36of the index futures and I like watching
1088. 42:40it around 8:30 in the morning, New York
1089. 42:42local time to 11:00. There's usually a
1090. 42:44setup in there that I'm going to be able
1091. 42:45to find. Obviously, you've seen I did
1092. 42:47multiple setups and executions today,
1093. 42:49but the point is this. That's like that
1094. 42:51sweet little spot in the morning that I
1095. 42:53focus on. I teach that in this YouTube
1096. 42:55channel. I teach it in my paid
1097. 42:58mentorship group. So, you're getting
1098. 43:01real stuff here. It's not something that
1099. 43:03was contrived. I didn't just make it up
1100. 43:04because this day worked out in my favor.
1101. 43:06My students recognize these things also.
1102. 43:09And
1103. 43:11these are simple elements that repeat.
1104. 43:14What you're looking for is a run on
1105. 43:15liquidity, buy stops or sell stops. If
1106. 43:18you're bearish, you're looking for buy
1107. 43:21stops to be ran. Then a break-in market
1108. 43:23structure lower, a short-term low being
1109. 43:25broken. That's what it looks like right
1110. 43:26here. Short-term swing low. We have a
1111. 43:28candle high, I'm sorry, a candle higher
1112. 43:31to the left with it with its low here.
1113. 43:33Then you have the low of this candle and
1114. 43:35the next candle's higher low than this
1115. 43:36one. So, you have a swing low formed. If
1116. 43:39you have that and then you have a break
1117. 43:40below that, if it happens that creates a
1118. 43:44gap like this, that's what you're
1119. 43:46looking for. When it trades up into
1120. 43:48that, you can go short. Or if you want
1121. 43:50to use sell stops, you can use a sell
1122. 43:53stop in this candle here in this. Let it
1123. 43:55trip you in and then use the high of
1124. 43:58that candle as your stop. That may be
1125. 44:00too wide for you. But I I mentioned the
1126. 44:02logic around this is you're using a
1127. 44:04micro. Okay, micros aren't that big of a
1128. 44:06deal. It's not a lot of money. Okay,
1129. 44:08you're not risking a full futures
1130. 44:09leverage. It's very very small. So, if
1131. 44:13you're looking at these types of setups
1132. 44:16and you can find them forming repeatedly
1133. 44:20over and over and over again and you
1134. 44:22study them, you're going to see that you
1135. 44:24don't need to get these little five
1136. 44:27handle moves, these little 10 handle
1137. 44:29moves. You can make a living doing that.
1138. 44:32Don't get me wrong. I'm not trying to
1139. 44:33say that people cannot be profitable and
1140. 44:36wildly profitable, but when you learn
1141. 44:38how to do something like this and you're
1142. 44:41able to pull down this number of handles
1143. 44:45and then you have sound money
1144. 44:47management,
1145. 44:49nothing compares to it, folks. These are
1146. 44:51the things that I use when you watched
1147. 44:53on when I was on Twitter and I ran up
1148. 44:55the demo accounts really high. These are
1149. 44:58the types of setups I was using. these
1150. 45:00types of setups. And as the account
1151. 45:02grew, it was more demo account leverage.
1152. 45:05Well, I'm not using a demo account right
1153. 45:07now. I'm showing you with a Thinker
1154. 45:09Swim. And anybody that knows Thinker
1155. 45:11Swim, when I'm showing you those
1156. 45:12screenshots, the paper trading shows as
1157. 45:15orange. Everything on that page is
1158. 45:17orange. When it's a live account, it's
1159. 45:19green. Okay. Also, here's the rub. With
1160. 45:24a demo account, it's just demo demo demo
1161. 45:26demo. Okay. I'm not trying to promote
1162. 45:29the idea that you're going to get rich.
1163. 45:33Notice that account hasn't gone bonkers.
1164. 45:35It hasn't ran up to a million dollars
1165. 45:37because this mentorship is to hopefully
1166. 45:40inspire you to pick up a skill that if
1167. 45:43you deem it useful and you decide at
1168. 45:46your own discretion and your own timing
1169. 45:48and you assume that risk on your own,
1170. 45:50because I'm not going to tell you to do
1171. 45:51this. If you decide to get really good
1172. 45:53at this and you put money behind it,
1173. 45:56that's a skill set that could, I'm not
1174. 45:58promising, but it could alleviate some
1175. 46:00of the problems with what I believe is
1176. 46:02coming in terms of financial hardship,
1177. 46:04not just in America, but everywhere.
1178. 46:06Jobs are getting harder and harder to
1179. 46:08have. The economy is a mess. So, how do
1180. 46:11we answer that? How do we get another
1181. 46:13income stream coming in? This is, in my
1182. 46:16opinion, this is one of the ways that
1183. 46:17you can at least investigate the idea of
1184. 46:19doing it. All right. So, I'm going to
1185. 46:20give you some homework in closing.
1186. 46:23I want you to go through all of the E-
1187. 46:26mini futures contract charts, okay? Just
1188. 46:28like I showed you here, these time
1189. 46:29frames. Go back and look at the
1190. 46:31presentation and see what the time
1191. 46:33frames I gave you. Listen to what I gave
1192. 46:35you in terms of audio commentary.
1193. 46:37That is enough. In fact, I gave you a
1194. 46:40ton. And it may have your head spinning
1195. 46:43if you're brand new to me or if you're
1196. 46:45brand new to technical analysis or
1197. 46:47trading. You may feel like, man, this is
1198. 46:48too fast. Do not send me an email. I
1199. 46:51promise you, the lessons I have planned
1200. 46:53will help eliminate and answer majority
1201. 46:55of the things you're going to ask. Just
1202. 46:58try to study and keep up with the pace
1203. 47:00that I'm going to put you through, which
1204. 47:01isn't going to be all that bad. But as
1205. 47:05we progress deeper into the teachings,
1206. 47:08many of the questions that are going to
1207. 47:10come up or when you start going into the
1208. 47:12homework assignment where you're looking
1209. 47:13at old data, an inday chart is anything
1210. 47:15less than a daily chart. So like a 4
1211. 47:17hour chart that's intraday. 1 hour chart
1212. 47:19that's intraday. Five minute, three
1213. 47:21minute, two minute, one minute, all
1214. 47:22those time frames are intraday. What
1215. 47:25you're going to be looking for are
1216. 47:27breaks in market structure after a pool
1217. 47:29of liquidity. Okay? Buy stops or sell
1218. 47:30stops have been taken in an opposing
1219. 47:34direction of your weekly expected range.
1220. 47:38In other words, are you expecting higher
1221. 47:39prices or lower prices on weekly range?
1222. 47:41So if you're looking for lower prices,
1223. 47:42your focus is on a run above an old
1224. 47:45high.
1225. 47:46Once that forms, then you're looking for
1226. 47:49a break in market structure on a lower
1227. 47:50time frame. Once that occurs and you
1228. 47:53have an imbalance, that's your trigger.
1229. 47:55Okay? And then you split that range that
1230. 47:58was created. Find out where the 50% is
1231. 48:00is. And then if you're selling short,
1232. 48:03you want to find something like an old
1233. 48:04low or an imbalance to aim for as your
1234. 48:08target. And you want to get the closest
1235. 48:10target. Don't try to get fancy and say,
1236. 48:12"Okay, well, I think it's going to go
1237. 48:13down to that lowest low." and try to use
1238. 48:15that for your exit because sometimes
1239. 48:17these markets can deny you that. So
1240. 48:21lowhanging fruit is how I teach. You
1241. 48:23want to have the easiest target and then
1242. 48:25allow the market to go further and you
1243. 48:28just not be a part of it. It's okay. Is
1244. 48:31is 125 130 handles in an index not good
1245. 48:34enough?
1246. 48:36I think it's good enough, but I'm
1247. 48:38probably just biased. But the homework
1248. 48:40assignment is again you going through
1249. 48:42the charts using the logic I framed in
1250. 48:45this introduction lesson looking for
1251. 48:47break and market structure. I also have
1252. 48:48lessons in this YouTube channel that
1253. 48:50talks about market structure breaks and
1254. 48:51things like that. And then you're going
1255. 48:53to look for the imbalance in price which
1256. 48:54is that fair value cap. Then you're
1257. 48:57going to determine where an opposing
1258. 48:59higher low resides. Then log and back
1259. 49:02test the number of handles you see in
1260. 49:03hindsight examples. In other words, how
1261. 49:05much did it offer? and you're going to
1262. 49:08get a collection of doing that. The next
1263. 49:10lesson, I'm actually going to show you
1264. 49:11how to go back into the charts and look
1265. 49:14for them, how to log them in your
1266. 49:16journal, and give you more insights
1267. 49:18about how you can find these setups that
1268. 49:20repeat every single week. Okay, so
1269. 49:23again, I'm going to build on this
1270. 49:24foundation in the next episode. The next
1271. 49:26episode will be next Tuesday, and the
1272. 49:28time upload will be 10 o'clock New York
1273. 49:30local time. Hopefully, you've enjoyed
1274. 49:32this one. Until I talk to you next time,
1275. 49:33I wish you good luck and good trading.