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2022 ICT Mentorship Episode 2 — Transcript

by The Inner Circle Trader · 8,838 words · 1,244 segments · language en · Watch on YouTube

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0:13all right folks well we're
0:16here so technically this is the first
0:20teaching uh I gave you guys an in
0:21introduction video obviously if you
0:23haven't watched that one yet go to the
0:24playlist on my YouTube channel and
0:27please watch that one because it'll help
0:28at least establish the in my opinion the
0:32proper expectations that way you
0:35understand what you're getting involved
0:35with here and at least it gives me a
0:38chance to kind of like break the ice and
0:41show you the contrast of what you may be
0:44expecting versus what I intend to
0:46deliver all right so this first
0:48installment is going to be elements to a
0:50trade
0:54setup all right
0:57so coming out of the gate I just want to
0:59let you know this is predominantly going
1:01to be a Futures index trading mentorship
1:07okay the idea is going to be presented
1:10in the scope of paper trading on
1:14tradingview.com
1:15but what you're looking at here this is
1:19thinker swims live data these are actual
1:22executions I made today and I want you
1:24to compare and contrast with what you
1:27see on YouTube and other educat where
1:31they'll tout that they can do this and
1:33they can do that but really I want you
1:36to compare and contrast what you see
1:38here all right so we're looking at
1:41intraday price action for Nasdaq e- mini
1:45Futures and this is actually uh the the
1:48main focus of this mentorship okay um I
1:52believe that this Market is worth
1:56studying I believe it is not just
1:58limited to NASDAQ but I believe it's
2:03useful to learn as
2:06a Trader that views obviously the e-
2:09mini S&P the e- mini Dow future and the
2:12e- mini NASDAQ now e- mini NASDAQ is a
2:15little bit faster a little bit more
2:18aggressive
2:19and even with that you can still trade
2:22it
2:23so I want you to think
2:25about what it means to watch price
2:28action and understand what it's likely
2:30to do before it does it now I'm not
2:32promising you're going to be able to do
2:33that right out of the gate what I'm
2:35going to show you is the compare and
2:38contrast to how I can trade versus what
2:42I'm promising to teach you in this
2:44mentorship how to find specific setups
2:47in your demo account okay or your paper
2:49trading account I'm not trying to entice
2:52you to trade with live funds okay so
2:53that way we know this going
2:56in the teachings will be predominantly
2:59through the school scope of
3:00tradingview.com paper trading module or
3:04just hindsight data now I already know
3:07some of you are oh here we go the
3:09hindsight
3:10guy well what you're looking at here is
3:13actually live executions from today okay
3:16and I want you to think about if you
3:18were able to trade a micro account and
3:22you were trading the Naas deck and you
3:26were able to capture just one of these
3:29moves which one would you like
3:31to learn how to find obviously you
3:34probably look at this and think well I'd
3:35like to do all of them but I want you to
3:37think about which one really stands
3:40out off the entire chart and this is a
3:43one minute chart which one really stands
3:46out I'll give you a moment you can pause
3:48the video and unpause it when you're
3:52ready some of you folks never ever pause
3:56it all right so obviously we can see how
3:59the Market moves from here okay two
4:03orders executed here whenever you see
4:05this this is actually a reversal so if
4:09there is a trade on long it'll reverse
4:12and take you the other direction okay
4:15and then this one here this is a
4:17reversal as
4:19well then another another close and then
4:23another long entry the exit a short
4:28entry and then the cover okay I'd like
4:31for you to consider what it would take
4:32for you to find consistency and how many
4:35handles how many
4:37full handle moves in an index Futures
4:41Contract that would satisfy you and when
4:44I say a handle that's essentially four
4:46ticks the minimum fluctuation in these
4:49markets an example would be if you were
4:52trading the EM S&P and you were trading
4:54obviously the
4:574450 level and you went long if it went
4:59to
5:004451 that's a full handle okay or four
5:02ticks or four * $12.50 or $50 per handle
5:08the nas deck is $20 per handle so it's
5:11slightly different but it's faster it
5:14moves a lot more lot more handles a lot
5:16more
5:18aggression now it doesn't always move
5:21faster sometimes we'll have a lethargic
5:25price action in this Indy or another out
5:28of the three that would be the S&P the
5:31NASDAQ and the
5:33Dow I personally don't trade the Dow
5:36that much but there's a lot of my
5:37students that love trading the ym but ym
5:41is the symbol for the Futures Contract
5:42and these three markets have the luxury
5:46for you that may not have the capability
5:49to put up to like
5:50$177,000 margin if you were going to
5:52trade one full contract of the NASDAQ
5:54futures most Brokers unless you're using
5:56a discount broker they're going to
5:57require you to have Deep Pockets and
5:59sense that you're going to have that
6:00about $177,000 and about 12,000 and a
6:04half for an e- Min S&P for Futures
6:06Contract okay you take
6:11basically a fraction of that and you can
6:14trade a micro on each one of these
6:16markets but obviously it reduces the
6:19number of the tick multiplier because
6:22you're trading with a lot less
6:24technically
6:25leverage so I'm going to get into all
6:27that but I just kind of like want to
6:30begin the
6:31conversation informally but also to kind
6:34of like show you what it is that I do
6:38versus what other people do okay
6:42so I'm not trying
6:44to you know point my finger at anyone in
6:47particular but if you look around on
6:49YouTube there are people out there that
6:51try to make a big stink about themselves
6:54and they'll try to
6:56show results that may or may not be real
6:59I'm not here to disparage that they
7:01could be actually trading a live account
7:03I don't personally care but anyone that
7:05trades on think or Swim they can
7:06recognize this chart right
7:08away I posted a results and updated uh
7:12reflection on the Thinker swim or TDM a
7:15trade account and it's on my community
7:18tab I promise I won't beat you up too
7:21much with the community tab but that's
7:22my way of reaching out to you so if you
7:25subscribe to the channel and then when
7:27you subscribe to the channel you want to
7:29toggle all notifications you want to
7:32click that little uh I think it's like a
7:34bell icon and then all notifications
7:37that way anytime I post my community tab
7:39it'll let you know otherwise it won't
7:41let you know so it's it's my replacement
7:43to Twitter which in my opinion
7:46sucks so if we look at the EB and flow
7:52of all this
7:53here where the Market's trading up and
7:57between here and here
8:00it's not a small number of handles it's
8:03a pretty respectful amount of handles
8:06it's not a couple it's not a handful and
8:09then up here it's a reversal and it
8:12comes back down and I buy it back here
8:14in Reverse so I'm selling short
8:17here and I'm buying long
8:21here 740 the 720 that's 20 handles going
8:26long here at 720 I'm abbreviating the
8:29number just for brevity sake getting out
8:32at 732 12
8:35handles then going along
8:39here 756 and then getting out at 784 A2
8:44then going short at
8:47798 and covering at
8:50675 so I'll ask you which one of these
8:53trades do you think is the one that you
8:55want to learn again putting all
8:57aside the idea that you you probably
9:00want to do all of these but I'm not
9:02promising you that okay I'm going to
9:04take you
9:06into how to find this setup
9:09here notice the number of handles I'm
9:12not promising you're going to get this
9:13many handles but the setups and the
9:15logic behind it will help you find these
9:18types of Frameworks framework is the
9:21foundation to a trading model so you
9:24have to have an understanding what is
9:25you're looking for and that's really the
9:27only thing I'm introducing tonight is
9:28the idea of what it is I'm promising to
9:32educate you with so that way you can go
9:34in and find these setups on your own you
9:36will not need to be a slave to some kind
9:40of blackbox system you don't need to be
9:43a part of some kind of signal generating
9:46gimmick you don't need to be a part of a
9:48signal service you can find these on
9:50your own independent that's exactly what
9:53I'm trying to frame in all of my
9:55students I do that with my mentorship
9:56students that paid me for education now
9:59here you are in my YouTube channel I'm
10:01telling you the same thing I'm teaching
10:04Independence that way you're not
10:05requiring any handholding by me once you
10:08understand the rules and you go through
10:09the processes and things I'm going to
10:11teach you how to practice with you will
10:13not need anything except for the chart
10:16itself that's it and that's how in my
10:20opinion and you can argue with this if
10:22you want but I could care less if you
10:23could any of you would challenge the
10:25idea that independent thinking is not
10:27the best way of doing it you want to be
10:29able to be Unshackled okay and if you're
10:31part of a signal service or if you're
10:33part of a approach that requires you to
10:36use a blackbox system you're kind of
10:40held captive aren't you so if you look
10:43at this this
10:45chart is clean except for these little
10:48bubbles actually show you the
10:50transactions you don't really get any
10:53kind
10:54of
10:57well distortion from your reading of
11:01price action I don't have a lot of
11:03graffiti on the chart okay but the main
11:05takeaway here is I want you to
11:06understand that I don't hunt for three
11:09to five handles and consider that
11:11legendary okay now can you be profitable
11:15if you take high frequency trades and
11:18you do those types of Trades absolutely
11:20that's what Algos do algorithms do that
11:23but I'm trying to show you by contrast
11:26that there is a way that you can find
11:28setups that are outside that parameter
11:31of very small little handles and doing
11:34lots of contracts so if you're looking
11:36at this here and this was say you're
11:38trading and you're trading a NASDAQ
11:41micro account you're not making a lot of
11:44money on these swings okay I'm not
11:47making a lot of money on these swings
11:49but I'm able to find these swings and
11:52it's not these small little increments
11:55okay I'm going to teach you skill sets
11:58that Focus primary arily on this okay
12:01you want to find a nice price leg
12:03intraday I'm not promising you how to
12:06buy sell short Buy sell short Buy sell
12:09short that's that's mine okay I'm not
12:13teaching that and I somebody like oh
12:15you're a jerk you're this you're that
12:16whatever I didn't promise that that's
12:18why I set the stage in the first
12:20introduction video so that way we know
12:22what it is I'm teaching you if anyone of
12:25you here don't want to learn how to take
12:27this type of trade you're welcome to not
12:29continue and turn this video off and go
12:30watch whoever okay but I think if you
12:35give it a chance you'll find some
12:37amazing things that bring Clarity to
12:39reading price
12:42action all right so we're looking at the
12:45NASDAQ futures March delivery contract
12:48and this is a trading view chart and if
12:50you've never used tradingview.com the
12:52way you would pull this symbol up is
12:54NQ
12:57h222 okay and and this is a weekly chart
13:01and I want you to think about each week
13:04before the new trading week begins
13:06preferably on the weekend okay the idea
13:10is you want to try to get a read on what
13:11you think that next weekly candle is
13:14going to do is it going to go higher or
13:16is it going to go lower you're not
13:18trying to predict the close of the
13:21weekly candle that's important okay you
13:23just want to see before this weekly
13:26candle opened up all we had was this IND
13:29candle okay do you think that this
13:32candle that would have formed and opened
13:34here is more likely to go higher or
13:39lower obviously with the benefit of
13:42hindsight here but I can tell you all of
13:44my students know we've been looking for
13:45lower prices and I'll just give you a
13:47quick short list as the reasons why
13:49number one seasonality okay seasonal
13:51Tendencies it tends to go down around
13:53this time anyway we also have
13:56discussions about how the fed's going to
13:58raise interest rates stock market does
14:00not like that we're also in earnings
14:02season there's a lot of volatility
14:04because of earnings and those factors
14:08plus the underlying tone of the
14:09marketplace which I'll show you when we
14:10get into the daily chart it
14:13just well it's heavy and this is where
14:16it was going to draw to okay did I
14:19expect this entire range to be delivered
14:21in one week no that's not important the
14:24point is I'm expecting the weekly candle
14:27to expand on the lower end okay okay or
14:29go down and gravitate towards this low
14:32which it hasn't broken yet but I think
14:34that's what we're probably going to aim
14:35for on Sunday's opening going into
14:36Monday's trading so that's where I think
14:39it's drawing
14:40to and that's the component I want you
14:43to focus on with your analysis what is
14:45the market likely to draw to when I say
14:47draw to think of it as price being a
14:53paperclip okay and then you you have
14:56this magnetic impulse that specifically
14:59price levels and seasonality okay
15:03will put on price it'll cause price to
15:07gravitate towards certain levels and the
15:09measure of speed and magnitude that it
15:11moves to get to these levels you learn
15:14that over experience that's not
15:16something I can transfer it's something
15:18you have to practice and see and study
15:20and you get a rhythm for it okay every
15:22educator knows what I mean by that and
15:24every student that's been trained
15:25successfully by any other educator will
15:27not understand exactly what I mean by
15:29that you just get a feel for it it's
15:31experience there's no way of defining
15:32outside of
15:34that in the early stages of your
15:36development you want to at least try to
15:38focus your attention on where that
15:40Weekly candle is going to do now here's
15:42the thing it may start the first half of
15:44the week or maybe just one day expand
15:47lower and if you get a setup in that
15:49that's it you're done that's how you
15:52start working towards consistency no
15:54student ever should try to trade every
15:57single session every single day because
16:00the only thing you're doing is building
16:03an expectation that you're going to be
16:04able to do this every single day
16:05profitably and then if you do get a run
16:08of profitability soon as you get a
16:10losing trade it's going to blow your
16:12mind and you're going to want to correct
16:14it quickly and you're going to start
16:16making irrational decisions and then you
16:18enter that loser cycle I've talked about
16:20many times in the YouTube channel so the
16:23only thing you're looking for is a
16:25likely movement higher or lower based on
16:28on the weekly candle okay that's all
16:30you're
16:31doing that sets your initial bias for
16:34the
16:35week on the daily chart you're looking
16:37for swing highs and swing lows to get
16:38your liquidity and majority of your
16:42trading and the draw on liquidity what
16:46makes the market go higher or lower it's
16:48predominantly found on this time frame
16:51okay so majority of your analysis should
16:53really be linked to this time frame
16:55right here you have to have an
16:57assumption
16:59whether you're going to be expecting
17:00that Weekly candle to expand higher or
17:02lower that's your weekly bi but then you
17:04have to go into the daily chart and
17:06figure out basically where you are in
17:08the grand scheme of things on that
17:09Weekly range expanding higher or
17:12lower because we're looking for lower
17:14prices and we're looking for
17:16weakness the expectation is we want to
17:18see every short-term
17:21low like this would be a shortterm low
17:23this will be a short-term low and
17:25underneath those lows there's going to
17:26be sell stops okay that's liquidity
17:30when I say learn to start looking for
17:33where the Market's going to draw to it's
17:35drawing to one of two things okay it's
17:39drawing to stops which is liquidity or
17:42it's running to an imbalance now what's
17:45that
17:46mean above old highs buy stops below old
17:51lows sell
17:53stops imbalances is something like this
17:56over here where we have one single
17:58candle pass higher and the previous
18:00candle's high is here and the next
18:02candle's low is here so it only went up
18:04one candle nothing moved down the
18:06overlap with that same delivery on that
18:08price candle there so in other words
18:11that's an imbalance it's only going
18:13higher and nothing else is here to
18:17offset that and efficiently deliver
18:19price on the opposite end now you
18:22probably heard of the theory auction
18:23Theory okay and folks hear me try to
18:28communicate some of these things and
18:30they'll run away with oh he's just
18:31talking about auction Theory and it's
18:32not just like when they see me do a
18:35rectangle or a box on chart and you'll
18:37see one in this video it's not supply
18:39and demand okay it's just what it is
18:42you'll see it and you'll know right away
18:43after you've been with me for a couple
18:45weeks that this is entirely unique and
18:47there's nothing else like it and I'm
18:49certain majority of you are going to
18:51fall in love with this
18:52model so we're looking for lower prices
18:55we're looking for an expansion I'm using
18:57the benefit of hindsight but I can
18:58promise you
18:59again this was discussed we were looking
19:01for lower prices in my paid group and if
19:03I did not say that I have a lot of
19:05students that are making YouTube
19:06channels they are welcome to come out
19:08and say I'm a liar so we're looking at
19:12the daily chart we're going to drop down
19:13into the hourly chart okay now what I
19:16have here is a framework for looking at
19:19the weekly range on an hourly chart so
19:21all I did was beginning on midnight New
19:24York time Monday's candle and then
19:28Friday's close and in the beginning of
19:30Friday's trading at midnight okay now
19:33what I'm delineating here is the fact
19:35that we had a nice selloff on
19:38Thursday and the market went into
19:39consolidation
19:41overnight notice what happens here on
19:44Friday this is that old low in the daily
19:46chart that's what we're thinking or
19:49assuming that it's going to draw to
19:51because that daily chart there's lots of
19:53liquidity and large fund Traders large
19:57institutional Traders
19:59institutional mindset investors will be
20:03looking at these old lows and old highs
20:07and liquidity providers will be looking
20:10to take business in around these same
20:13levels so if we know that this level
20:16down here is the old daily low and again
20:19let me take it back up to the chart on
20:20the daily chart that's this low right
20:22here okay by dropping down into the
20:24hourly chart at levels here all I'm
20:26doing is transposing those daily levels
20:30right to this hourly
20:31chart the entire week has been
20:34bearish okay it's been going lower since
20:36the beginning then we had consolidation
20:39in
20:40here the market creates this short-term
20:43high in this short-term low what rests
20:46above that short-term high if you've
20:48taken notes and been paying attention
20:49it's buy stops what's resting below this
20:52low Here Sell stops watch closely the
20:57market trades down initially
20:59and takes out the cell stops why would
21:01it do that
21:03first this is inducing shorts okay so it
21:06Engineers liquidity even
21:10if the idea is that they want to take
21:14the market down to this level if it's
21:16been
21:18consolidating I like to see them do this
21:20type of move here where it drops down
21:22first it's kind of like a sucker play
21:25anybody has a sell stop below here they
21:27want to sell on weakness
21:29they're going to get tripped into the
21:30marketplace so now they're triggered in
21:32short and then they start doing a run
21:34against those Traders and against those
21:38that were already short from this high
21:40so what are they doing the Market's
21:42being driven higher and the algorithms
21:45going to attack that buy stock liquidity
21:47pool why would they want to do that
21:50number one it's going to punish those
21:51individuals here that went
21:53short when it drives Above This High
21:57here it sends all those spy stops into
22:01Market orders flooding the marketplace
22:04that gives a huge influx of willing
22:08buyers at a high price which is the
22:10perfect counterparty to Smart money that
22:13wants to sell at a high price remember
22:15the market wants to go down here so when
22:18it dries up to here those buy stops are
22:21the counterparty or the other side of a
22:24smart money Trader that's wanting to go
22:27short because they're going to sell
22:28short they got to sell it to somebody
22:30wants to buy it at a high price that's
22:32why the market does this okay in your
22:35notes you want to record anytime a
22:37significant price move lower is expected
22:41always anticipate some measure of a stop
22:43hunt on buy stops or a short-term High
22:45being taken out obviously it's reversed
22:48when you're looking for higher prices
22:51generally you'll see a shortterm low
22:53taken out and sell stops taken before
22:55you see a very pronounced rally High
22:59higher don't take my word for it go
23:01through your charts and you'll see it's
23:03actually occurring almost on a daily
23:05basis so we're going to drop down into a
23:0815-minute time frame so that same old
23:11low level down here and that high I just
23:14mentioned on the hourly chart and the
23:15low on the hourly chart is now been
23:18defined with a small little line segment
23:20okay so we have a trend line here and a
23:22trend line here that's the extent of a
23:24trend line that's it I only use them to
23:26highlight to my students these levels
23:28are not on my chart I'm watching a naked
23:31chart
23:32okay you while you're developing you
23:35should have these levels drawn out in
23:37your chart because it helps you build
23:39and ingrain the idea that this is where
23:41liquidity is it keeps you focused on
23:43that because it's easy to look at all
23:45these candles forming if you have the
23:47luxury of watching it in life and you
23:49can lose sight of where you are and mean
23:51once you lose your bearings it's really
23:54confusing and this helps you keep those
23:56bearings in mind and what do I mean by
23:58that well I mentioned how the market
24:00dropped down initially and that takes
24:02the sell stops out so sell side
24:05liquidity has been attacked Traders are
24:08now tripped in going short if they sold
24:10on a break trying to be a breakout
24:12artist and then the algorithms go right
24:14back up to an area where it's been
24:16cleanly delivered relative equal highs
24:19see how this High here right before it
24:20dropped is basically the same high here
24:23notice that so retail Traders see this
24:26and they trust it as what
24:29resistance so the books always say put
24:32your buy stop if you're going to go
24:34short right above and clear level of
24:37resistance well these levels work for a
24:39short period of time but majority of the
24:42time you see this event right here and
24:44this is how I teach my students to go in
24:45there and look for those types of events
24:47because what did I just tell you a
24:48moments ago about looking for
24:50significant price moves before there's a
24:52significant price move of any real
24:54magnitude or
24:56importance generally there's going to be
24:58a hunt that takes place right before
25:00that price delivery occurs so what does
25:03it look like you have relative equal
25:05highs this high and this High the market
25:07goes up when we're what we're expecting
25:09lower prices on that Weekly chart we're
25:11on the last day of the week it's already
25:13been heavy it's weak and the only thing
25:15it's been doing is consolidate and the
25:18first thing it did was broke out to the
25:19downside tripping what traders in a
25:22breakout to go short so now they have
25:25Traders caught on the wrong side offs
25:27side and now they want to take the
25:29market up here where those buy stops are
25:31going to be resting for those that were
25:32smart enough to sell short here or here
25:36and didn't get out below here so the
25:39larger pool of liquidity is going to be
25:40resting here because it's in sync with
25:43the downtrend and everybody that was
25:45short the day
25:46before they seen this High form and once
25:49it broke below this low here they all
25:51rushed and Trail their stop loss right
25:53above that and I understand if you're
25:56new and you think well this is easy to
25:58explain in hindsight but I want to
26:00remind you go back and look at the first
26:01slide I showed you those were actual
26:03entries that's a live account through
26:05thinker swim Charles swab that was the
26:08clearing firm that did the broker side
26:10of the business okay so I'm not showing
26:13you a demo account I'm not showing you
26:15paper trading that those were real
26:17entries okay they were real reversals
26:19the whole business but the main thing
26:21was I showed you that larger trade this
26:23is going to be the framework that I'm
26:25teaching you how to find it okay but
26:27this pool of liquidity once this occurs
26:30you want to drop down to your lower time
26:32frames and start looking for something
26:33specific and let's go into those lower
26:35time frames and find out what that
26:37is okay here's a two-minute chart why a
26:40two-minute chart well 2 minute 1 minute
26:43or 3 minute or five five minutes still
26:46has a lot of room for imbalances to
26:49occur underneath that time frame and
26:51what do I mean by that the one minute 2
26:54minute 3 minute chart tends to be the
26:58best for finding the imbalances for
27:01indices okay don't take my word for that
27:03okay if you're looking for high
27:04frequency setups intraday the one two or
27:073 minute chart are just beautiful they
27:10just offer a real good Clarity the
27:12reason why because the high frequency
27:14trading algorithms are operating on
27:17nothing really higher than 3 minutes
27:19majority of the time they're like
27:20seconds okay 15c 30 second 45 second 60c
27:25intervals okay and what they're looking
27:27for are these small little imbalances
27:30and what does that look like well we
27:32have that run on the buy stops here okay
27:34remember that old high here the old high
27:37here old high here it runs right on
27:39through that once this occurs on that
27:43higher time frame 15-minute time
27:45frame you want to drop down to the lower
27:47time frames and I'm using the two-minute
27:49chart because this is exactly what I was
27:50using to find that imbalance and trade
27:53off of it
27:55okay the market creates a short-term low
27:57here here and then it breaks below that
28:00this is key this is called a break in
28:02Market structure now the foundations and
28:05underlying framework is we're in a
28:07market that's what weekly bearish we're
28:10expecting that Weekly candle to expand
28:12lower it's been expanding all week so we
28:15have momentum on our
28:17side we have a consolidation that's
28:20occurred and we had a pull liquidity
28:22engineered with these relative equal
28:23highs and the market broke out to the
28:25downside first and then they ran on the
28:28highs so once it went here we don't rush
28:31in there just go short because it went
28:33above old highs we're looking for some
28:36specific signature that tips its hand to
28:38you okay and I promise you when you
28:40start going through your charts and it's
28:41going to be homework for you you're
28:43going to see this occurring almost every
28:45single day and if it's not doing it this
28:47way it's doing it the opposite direction
28:48as a buy okay again don't take my word
28:51for it you're going to be flabbergasted
28:53you like that flabbergasted when you see
28:56how many times this thing forms every
28:58single week okay it's many times
29:01throughout the intraday charts it
29:03creates this type of move but it runs
29:06the stops then we have a short-term low
29:08and then it breaks below it so now we
29:10have a Breakin Market structure okay
29:12once this low is broken you're going to
29:15look for this little area here that's
29:17that imbalance I mentioned in the
29:18beginning right so what's happening is
29:21the Market's going to go right up inside
29:22that area there and that's where you
29:25want to sell now if you don't sell there
29:28you can drop down to a lower time frame
29:29one minute chart if this was a 3 minute
29:31chart you can go down to a one minute
29:32chart and look for that to occur on that
29:34time frame as well and it many times
29:36will form if you're looking at a lower
29:38time frame like say this was a 5-minute
29:40chart and you looked at a one minute
29:41chart you'd find one down in here it's a
29:43matter of scaling down in your time
29:45frames because once you have an
29:47underlying premise to the market now
29:50likely to go lower it becomes an easy
29:53thing to look for these types of things
29:55so in your chart once you're developing
29:59this idea and and learning it you're
30:01going to highlight this candle's low
30:03this candle's high and this right here
30:04is what I teach my students as a fair
30:06value Gap okay you don't have those in
30:09books okay you don't have any of that
30:10kind of stuff out there it's something I
30:12introduced back in
30:142016 and obviously a lot of people
30:17discovered how good it is and they try
30:19to make courses with it but I'm going to
30:22not touch that right here but the idea
30:25is once it go up into that imbalance
30:27there and once it does that soon as it
30:30enters that
30:31area the algorithm that delivers price
30:36now some of you may not know what that
30:37means and some of you may not even agree
30:39with it you may think that this is made
30:41up or it's contrived I promise you if
30:44you spend time with this you're going to
30:45quickly come to the conclusion that
30:47there absolutely is an algorithm and
30:49it's manipulating the markets every
30:51single day every single tick it's
30:53completely controlled okay period you're
30:56led to believe it's buying and selling
30:57pressure now if I go back and use that
30:59analogy where it went down here first
31:01then go up here some of you may argue
31:03see that's the buying and selling
31:05pressure no it's not it's liquidity now
31:07you may argue and say well we're arguing
31:09semantics no I'm telling you what's
31:11going on this is the logic this is how
31:13these markets book
31:15okay once you see these patterns over
31:18and over and over again it's very easy
31:21to execute on them but the impulse to
31:23want to do it the first time you see it
31:24because you watch this video that is
31:27going to be problematic for you so
31:29you're going to have to do a certain
31:30number of weeks and months of back
31:32testing there's no escaping that you
31:34have to do it any skill set any teacher
31:37educator system whatever okay whatever
31:40they're going to give you there's going
31:42to be some kind of growing period where
31:44you have to trial and error fix the
31:47problems that you have about yourself
31:49and I've literally taken your attention
31:51to a very specific framework and setup
31:53notice that some of you may think I'm
31:55still talking too much but I'm taking
31:56you right into the heart of the matter
31:58this is what it looks like this is what
32:00you're looking for okay these are the
32:02Fingerprints of that
32:04setup these
32:06repeat so if you know what they are and
32:09what those components are that make up
32:10this
32:11setup you'll be able to find them but
32:14focus on the imbalance after the market
32:17structure breaks so this big candle here
32:19it breaks
32:20down look at the next candle it opens
32:23and trades higher and stops right there
32:25so from this candle's low and this
32:26candle's High when this candle starts
32:28trading soon as it opens and it runs
32:30right up into that that's a short you
32:31can go right in there and sell short be
32:33done now where's your stock going to be
32:37well you can put it above this High here
32:40or you can put it above this candle's
32:42High whichever your risk parameters
32:44allow for okay um if you're trading the
32:48micro which is again it's not a lot of
32:50money per tip so the multiplier for that
32:52is very very small if you trade the
32:56larger full Futures cont cont and if it
32:58moves 100
32:59points and it can do it real quick it
33:02can burn you pretty bad so you may have
33:05the leverage to trade with a discount
33:07broker okay you may have the initial
33:09margin to trade with a discount broker
33:11but you may not have the wherewithal and
33:13the skill set to navigate this market
33:15and that's the only thing I'm trying to
33:17provide here as an alternative because
33:19there's a lot of individuals outs there
33:21that will promote the idea that you can
33:22go out there with a discount broker and
33:24just clean up yeah if you know what
33:26you're doing but you don't need a
33:29discount broker to be profitable
33:32okay looking at this further we're going
33:35to look at the logic in here and I want
33:36you to think about after this forms and
33:39you see that as your choice setup or
33:41entry if it starts to move lower you can
33:45still get in it there's no reason not to
33:48think that you know you can't get in it
33:49here or in here it's close to or in
33:54close proximity to where that area is as
33:56an entry once we take out a low though
33:59once that occurs then it becomes a
34:02matter of your chasing price and if you
34:03try to get in especially if you like
34:04using Market order you may see it trade
34:07right to this low and say okay now I
34:09believe it's going to go down you put a
34:10market order in the sell short then
34:12slippage gets you down here that creates
34:14a larger area of risk that you have to
34:16assume and it's just it's problematic
34:18you want to learn to trust going short
34:19when the Market's going higher and that
34:21feels scary at first but once you start
34:23seeing this pattern form it becomes easy
34:26to trust it and in in fact that you want
34:28to be doing that you want to be selling
34:30short expecting lower prices right when
34:33the candle's going up and Retail Traders
34:36can't grasp that many times it's just
34:38like it goes against the logic because
34:40they think I got to have confirmation
34:42all the books say I have to have
34:43confirmation and that's somebody that's
34:45coming in late that's someone that
34:47doesn't have a read price they can't
34:49really follow it and usually they're the
34:51people that will trade short with
34:53additional shell you know sell stops
34:55they'll put sell stops below the
34:56marketplace and then that's a momentum
34:58entry for them and it's kind of like a
34:59no-brainer in fast markets it yeah it
35:01works but if you don't know what you're
35:03doing you try to do that in a market
35:05that's consolidating or about the
35:06reverse it hands you your backside okay
35:10so if you're looking at this framework
35:13here and we've taken the buy stots we
35:14have our entry pattern here what would
35:16you be looking for as a downside
35:19objective well I'm going to teach you
35:22the liquidity Matrix okay and sounds
35:25pretty cool sounds neat and all that but
35:27watch what it is this here is your range
35:30this is the low of the day and this is
35:32the high of the day thus far so if we
35:35take that range and split it from the
35:36low to the high to get the midpoint all
35:39this can be determined by a simple 50
35:40level on a Fibonacci so you drag your
35:42Fib from this high down to that low or
35:44vice versa and have your 50 level
35:47highlighted then anything above that 50
35:50level this is referred to from an
35:53algorithmic stance as a premium Market
35:56it means is expensive now markets can
35:59stay in a premium for a while and not go
36:02to a discount which would be below the
36:0450 point okay 50% anything down here is
36:07a
36:08discount if you're bearish if you're
36:10ever going short you want to look at the
36:11previous range where are you at inside
36:14that range so when this formed here that
36:16little fair value Gap once that
36:20formed you're thinking okay we are in a
36:23premium so algorithms will want want to
36:26go to a discount that's the opposing
36:29side of the marketplace so if it's going
36:31short here it's driving the market lower
36:34what does that mean the algorithm is
36:35going to start pricing lower you can
36:38have all the buyers in the world come in
36:40if the algorithm is in a sell program
36:42and it's going lower it does not matter
36:44it's going to repic lower and lower and
36:46lower and then what will happen is those
36:48buyers that may come in with a huge
36:49influx of volume they're going to get
36:51crushed and they get squeezed you ever
36:53hear that term oh this is a bear squeeze
36:55this is a bull squeeze all that is an
36:58excuse for them not to know why the
36:59algorithm is doing what it's doing
37:00that's it that's all it is it's an out
37:02okay I'm telling you this is what's
37:04really going on so the Market's moving
37:06from this premium high this specific
37:09entry point to a level below the 50 of
37:13this range this low and this high now I
37:17want you to again go back and Rewind the
37:19video once we're done and look at that
37:22execution page where I showed you my
37:24entries going back and forth up and down
37:26up and down and where I got out at where
37:28I got in at okay I want you to think
37:32about what below this level here the 50
37:35level what is resting below
37:41here cell stops so now think about the
37:45idea of Someone Like You and I that
37:47would see this ideal entry as a short we
37:50have to sell to get in that short how do
37:52we get out of that short we got to buy
37:55it back or cover it by buying
37:58well we're going to find willing sellers
38:00at a low price relative to this point
38:02here they're willing already sitting
38:04down there with their sell stops right
38:06below that
38:07low now look closely what else resides
38:11right near that
38:14low do you see it pause the video before
38:17I show it to you because it kind of
38:18ruins the experience because if you find
38:21it and I don't tell it it feels
38:24good right there is that imbalance I
38:27mentioned
38:28okay it's only one single candle passing
38:30up and the previous candle's High and
38:32the next candle's low that area right
38:34there is an imbalance from this area
38:36here it went down below the 50 level and
38:39attacked these cell stops and completely
38:43closed in this imbalance so every point
38:45of this candle's High to this candle's
38:47low that range with the candle only
38:49going up that's a by side
38:54imbalance it has to have an equal
38:57delivery to be efficiently priced and
39:00booked by the algorithm it goes down and
39:03completely closes it back in with down
39:05movement notice the candle on this here
39:06it opens and then trades down so it
39:08fulfills its role of balancing the buy
39:11side offering now the sells side
39:13offering so that is an efficiently
39:15delivered price
39:16move Precision elements from the entry
39:19here down to here everything else after
39:22that for the rest of the day I didn't
39:23care about even though I had an
39:25objective of that old daily low I wasn't
39:28expecting it to run into it this
39:32particular day and that's why I didn't
39:33participate anymore the rest of the day
39:35in hindsight I wish I would have left a
39:37small position on and just let it go but
39:40you're going to have that you're never
39:41going to be right about everything all
39:43the time every single day you're going
39:44to leave things on the table you're
39:46going to get in too early you're going
39:47to hold too long you're not going to buy
39:49enough you're not going to sell enough
39:50there's always going to be some reasons
39:52why you didn't do something right so
39:53don't beat yourself up about it okay but
39:55if you can find elements like this
39:56repeat in the price action can you agree
39:59with me that that is amazing precision
40:03and this is the logic I used to do that
40:06trade the very trade that I showed you
40:08that was the largest one in the example
40:10of saying which one would you rather
40:11learn how to
40:13do I basically just handed you an ATM
40:16machine
40:18okay this repeats every single week
40:23every single week now I want you to
40:25count the number of the Handles in this
40:29move let's say you got in at uh well
40:32this say you got in at 800
40:3414,800 it started to go down you trust
40:37it okay we're going to go short ideally
40:40you want to enter as it goes into that
40:41but it's going to take time for you to
40:42trust
40:43that but let's say you got in at
40:4714,800 if you got out down here like I
40:49did I exited as it went right to the top
40:51of that range right here this range here
40:55that's the top of it once went below
40:58that that was it for me that closed the
41:01trade is that five handles is that 10
41:04handles is that 20 handles is that 30
41:06handles is that 50
41:10handles
41:11no it's over 100 and
41:14something
41:17now let's assume for a moment that you
41:20get good at this or I get the
41:23inclination that I want to go to some
41:25kind of a deep discount broker
41:27and I go in I do trades like this and
41:29I'm putting on 15 to
41:3125 full Futures contracts what do you
41:35think the results are going to
41:40be yep so not everything is going to be
41:46easy right away and you're not going to
41:48be able to see these things happen just
41:50because you sit in front of the charts
41:52you have to study and you have to
41:54practice and by experience of looking at
41:56Old moves and watching real price action
41:58as best as you can if you can't watch it
42:00live trading view has a replay button
42:03where you can watch the candles kind of
42:05form but they're they're little stilted
42:09because it's not completely painting the
42:12candle okay and you can't practice with
42:15entering like that you can only just
42:16study how price moved and gravitated
42:19towards certain levels it's the best
42:21thing you can have if you if you at
42:23least consider doing that much that's
42:26good but if you really want to take it
42:28to the next level and say you're running
42:29a business or if you're going to school
42:31or you have a job and you can't watch
42:33the time frame around the opening of the
42:37index Futures and I like watching it
42:40around 8:30 in the morning New York
42:42local time to 11:00 there's usually a
42:44setup in there that I'm going to be able
42:45to find obviously You' seen I did
42:47multiple setups and executions today but
42:49the point is this that's like that sweet
42:51little spot in the morning that I focus
42:53on I teach that in this YouTube channel
42:56I teach it in my my paid mentorship
42:59group so you're getting real stuff here
43:02it's not something that was contrive I
43:03didn't just make it up because this day
43:05worked out in my favor my students
43:07recognize these things also
43:10and these are simple elements that
43:13repeat what you're looking for is a run
43:15on liquidity buy stops or sell stops if
43:18you're bearish you're looking for buy
43:21stops to be ran then a break-in Market
43:23structure lower a short-term low being
43:25broken that's what it looks like right
43:26here shortterm swing low we have a
43:28candle High I'm sorry a candle higher to
43:31the left with with its low here then you
43:33have the low of this candle and the next
43:35candle's higher low than this one so you
43:37have a swing low formed if you have that
43:39and then you have a break below that if
43:42it happens that creates a gap like this
43:46that's what you're looking for when it
43:47trades up into that you can go short or
43:49if you want to use cell stops you can
43:52use a cell stop in this candle here and
43:54this let it trip you in and then use the
43:57high of that candle as your stop that
43:59may be too wide for you but I I
44:01mentioned the logic around this is
44:03you're using a micro okay micros aren't
44:05that big of a deal it's not a lot of
44:07money okay you're not risking a full
44:09Futures leverage it's very very small so
44:13if you're looking at these types of
44:15setups and you can find them forming
44:19repeatedly over and over and over again
44:21and you study them you're going to see
44:24that you don't need to get these little
44:26five handle moves these little 10 handle
44:29moves you can make a living doing that
44:31don't get me wrong I'm not trying to say
44:33that people cannot be profitable and
44:35wildly profitable but when you learn how
44:38to do something like this and you're
44:41able to pull down this number of
44:45handles and then you have sound money
44:48management nothing compares to it folks
44:51these are the things that I use when you
44:53watched on when I was on Twitter and I
44:55ran up the demo accounts really high
44:57these are types of setups I was using
45:00these types of setups and as the account
45:02grew it was more demo account leverage
45:05well I'm not using a demo account right
45:07now I'm showing you with a think or Swim
45:09and anybody that knows think or Swim
45:11when I'm showing you those screenshots
45:13the paper trading shows as orange
45:16everything on that page is orange when
45:18it's a live account it's green okay also
45:22here's the rub with a demo account it's
45:25just demo demo demo demo okay
45:27I am not trying to promote the idea that
45:31you're going to get rich notice that
45:33account hasn't gone Bonkers it hasn't
45:35ran up to a million dollars because this
45:38mentorship is to hopefully inspire you
45:40to pick up a skill that if you deem it
45:44useful and you decide at your own
45:46discretion and your own timing and you
45:48assume that risk on your own because I'm
45:50not going to tell you to do this if you
45:52decide to get really good at this and
45:53you put money behind it that's a skill
45:57set that could I'm not promising but it
45:59could alleviate some of the problems
46:01with what I believe is coming in terms
46:03of financial hardship not just in
46:05America but everywhere jobs are getting
46:07harder and harder to have the economy is
46:09a mess so how do we answer that how do
46:12we get another income stream coming in
46:15this is in my opinion this is one of the
46:17ways that you can at least investigate
46:18the idea of doing it all right so I'm
46:20going to give you some homework in
46:22closing I want you to go through all of
46:25the e- mini Futures Contract charts okay
46:28just like I showed you here these time
46:29frames go back and look at the
46:31presentation and see what the time
46:33frames I gave you listen to what I gave
46:35you in terms of audio
46:36commentary that is enough in fact I gave
46:39you a ton and it may have your head
46:42spinning if you're brand new to me or if
46:44you're brand new to technical analysis
46:46or trading me feel like man is too fast
46:49do not send me an email I promise you
46:51the lessons I have planned will help
46:54eliminate and answer majority of the
46:55things you're going to ask
46:57just try to study and keep up with the
47:00pace that I'm going to put you through
47:01which isn't going to be all that bad
47:04but as we progress deeper into the
47:07teachings many of the questions that are
47:09going to come up or when you start going
47:11into the homework assignment where
47:13you're looking at old data an intraday
47:15chart is anything less than a daily
47:16chart so like a 4H hour chart that's
47:17intraday 1 hour chart that's intraday 5
47:20minute 3 minute 2 minute 1 minute all
47:22those time frames are intraday what
47:25you're going to be looking for are
47:27breaks in Market structure after a pool
47:28of liquidity okay buy stops or sell
47:30stops have been taken in an opposing
47:34direction of your weekly expected range
47:38in other words are you expecting higher
47:39prices or lower prices on the weekly
47:40range so if you're looking for lower
47:42prices your focus is on a run above an
47:45old high once that forms then you're
47:48looking for a break- in Market structure
47:49on a lower time frame once that occurs
47:52and you have an imbalance that's your
47:54trigger okay and then you split that
47:57range that was created find out where
47:59the 50% is and then if you're selling
48:02short you want to find something like an
48:04old low or an imbalance to aim for as
48:07your Target and you want to get the
48:09closest Target don't try to get fancy
48:12and say okay well I think it's going to
48:13go down to that lowest low and try to
48:15use that for your exit because sometimes
48:17these markets can deny you that so lwh
48:21hanging fruit is how I teach you want to
48:23have the easiest Target and then allow
48:25the market to
48:27go farther and you just not be a part of
48:29it it's okay is is 125 130 Handles in an
48:33index not good
48:35enough I think it's good enough but I'm
48:38probably just biased but the homework
48:40assignment is again you going through
48:42the charts using the logic I framed in
48:44this introduction lesson looking for
48:47Breakin Market structure I also have
48:48lessons in this YouTube channel that
48:49talks about Market structure breaks and
48:51things like that and then you're going
48:53to look for the imbalance in price which
48:54is that fair value cap then you're going
48:57to determine where an opposing high or
49:00low resides than log and back test the
49:02number of handles you see in hindsight
49:04examples and other words how much did it
49:06offer and you're going to get a
49:08collection of doing that the next lesson
49:10I'm actually going to show you how to go
49:11back into the charts and look for them
49:14how to log them in your journal and give
49:18you more insights about how you can find
49:19these setups that repeat every single
49:21week okay so again I'm going to build on
49:24this foundation in the next episode The
49:25Next Episode will will be next Tuesday
49:27and the time upload will be 10:00 New
49:30York local time hopefully you've enjoyed
49:32this one until I'll talk to you next
49:33time I wish you good luck and good
49:34training

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