YouTube transcript (2H_qpeIp2rY) — Transcript

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1. 2:30Hello folks, how are you? Hope you're
2. 2:31doing well.
3. 2:32All right, so we're looking at the
4. 2:33NASDAQ again.
5. 2:35Keeping things simple.
6. 2:38Not a long list of markets to look at.
7. 2:42Everything I'm teaching here is
8. 2:43applicable to everything else. Okay, so
9. 2:45just be mindful of that.
10. 2:47>> [snorts]
11. 2:47>> And we're looking at through
12. 2:49regular trading hours.
13. 2:52So overnight last night, we had a lot of
14. 2:55price action just hanging above that
15. 2:571-hour Wednesday of last week noon time
16. 3:01Eastern time. 1-hour buy side imbalance
17. 3:03sell side inefficiency.
18. 3:05If you've watched the last few lectures
19. 3:07and commentary, you know what that buy
20. 3:09side imbalance sell side
21. 3:11buy side imbalance sell side
22. 3:12inefficiency is.
23. 3:14So,
24. 3:15we
25. 3:19moved back into
26. 3:21Monday's
27. 3:23regular trading hours opening range gap
28. 3:24as I see we would likely do overnight
29. 3:26going into this morning's session.
30. 3:29And
31. 3:30we opened down here
32. 3:33on regular trading hours for Wednesday
33. 3:35at 9:30 Eastern time.
34. 3:36So we had a discount gap.
35. 3:39So we worked our way back up higher up
36. 3:41into
37. 3:43I'm actually going to
38. 3:46highlight the
39. 3:51price action around the settlement price
40. 3:53on regular trading hours from yesterday.
41. 3:56So we'll anchor to that close. We'll
42. 3:58draw down into the open right here on
43. 4:04that. Okay? So there's consequent
44. 4:06encroachment
45. 4:08of today's discount
46. 4:10regular trading hours opening range gap.
47. 4:13So where we stopped trading yesterday at
48. 4:154:14 p.m. Eastern time
49. 4:17and then we resumed regular trading
50. 4:19hours at
51. 4:209:30 this morning.
52. 4:22Why is that not there? It's
53. 4:26There we go.
54. 4:28Now it's correct. So we traded up into
55. 4:32that gap or consequent encroachment.
56. 4:34Uh it does so before 10:00, so there's
57. 4:36our 70% likelihood of happening. So not
58. 4:38bad of a run there to there.
59. 4:41So
60. 4:43100 handles
61. 4:44or more from open to there.
62. 4:48And
63. 4:49we work into yesterday's
64. 4:52first presented fair value gap. So
65. 4:54that's what this level is. And we'll
66. 4:55look at that from the perspective of
67. 4:57electronic trading hours in a moment.
68. 4:59Uh but we move higher
69. 5:01and go all the way up into Let me add
70. 5:04the highest octant.
71. 5:08Look right in this area here. Ready
72. 5:09watch.
73. 5:10See that line?
74. 5:12Watch what's happening. See that?
75. 5:14Now, that's where the body stopped
76. 5:17on the rally up.
77. 5:18That's interesting.
78. 5:20It's probably random. We come back down,
79. 5:22consequent encroachment of the regular
80. 5:23trading hours opening range gap for
81. 5:24today.
82. 5:25Bang around a little bit. We break lower
83. 5:27right back into Wouldn't you know it?
84. 5:30Tuesday's first presented fair value
85. 5:32gap. Okay?
86. 5:33Um I used this to go short. Okay? So
87. 5:37we're going to look at that now. Um just
88. 5:39so you guys know
89. 5:41I'll be have a little bit of unfinished
90. 5:42business up here for today's regular
91. 5:44trading hours opening range gap. We have
92. 5:46relatively equal highs up here. There's
93. 5:47buy side up here. I think they're going
94. 5:48to want to take it up there.
95. 5:50Um
96. 5:51if it doesn't happen today, we'll be
97. 5:52looking for that going into you tonight
98. 5:55you know, going into the rest of the
99. 5:56week.
100. 5:58Um electronic trading hours, let's go
101. 6:01into that.
102. 6:02>> [snorts]
103. 6:03>> All right, so
104. 6:05over here
105. 6:08we have price
106. 6:12trading down.
107. 6:17I gave you this gap last night in the
108. 6:18commentary. So, we tried one more time
109. 6:20getting above it. And buy side imbalance
110. 6:22sell side efficiency right here.
111. 6:23Wednesday's noon Eastern time, 1 hour
112. 6:25buy side imbalance.
113. 6:27We break lower, come back up into the
114. 6:29gap I showed you last night. Beautiful
115. 6:32delivery.
116. 6:34Look at the bodies being left
117. 6:36right here. Wicks up. I know it's a
118. 6:38little hard to see, but you have your
119. 6:39own charts to look at.
120. 6:42Right here.
121. 6:43And then we break lower.
122. 6:46Fair value gap right in here right
123. 6:48before we took out that high.
124. 6:50That's going to act as an inversion fair
125. 6:51value gap.
126. 6:53And
127. 6:54rolls over.
128. 6:56We trade into first presented fair value
129. 6:58gap from Tuesday. That's what this is
130. 7:00here.
131. 7:02We sell off.
132. 7:05This is all overnight.
133. 7:07And then right in here we hit we hammer
134. 7:10relative equal high.
135. 7:13It slams into that. And I tweeted
136. 7:17and just one more testimony to how I
137. 7:20honestly believe, okay, and I know that
138. 7:22people don't like me. They like to take
139. 7:24They like to take shots at me, but they
140. 7:25don't have anything to say about the
141. 7:26analysis and the trade executions.
142. 7:28They They just simply go around that.
143. 7:31But they'll say
144. 7:33um
145. 7:35this guy's got a lot of conspiracy
146. 7:36theories.
147. 7:38But now when I'm tweeting
148. 7:40or posting on X
149. 7:42and it has something to do with the
150. 7:43market I'm trying to call your attention
151. 7:45to it before it happens.
152. 7:46Uh there's a strong long delay.
153. 7:49And then it just pops up.
154. 7:51And it's just there's nothing I can do
155. 7:52about that.
156. 7:53And I've asked in the past if other
157. 7:55people have seen that happen in their
158. 7:56own posts and they have. They've they've
159. 7:59confirmed it happens to them too, but
160. 8:01I'm just noticing there's a whole lot of
161. 8:03disconvenient inconveniences
162. 8:05when it comes to me trying to
163. 8:07to hang out with the algo and talk about
164. 8:09the future before it happens in the
165. 8:10charts. So, just something I'm
166. 8:12observing. You know, I'm not trying to
167. 8:13make too much to do of it, but you know,
168. 8:15just something interesting.
169. 8:17Uh same bit of business here. We have a
170. 8:19high right before the high is taken out.
171. 8:22You can see this little here.
172. 8:25Volume imbalance at the low
173. 8:27to that.
174. 8:28So, right in here
175. 8:31where it's pink
176. 8:34this
177. 8:36is based on
178. 8:37its first utilization. Both of these
179. 8:40gaps
180. 8:41I'm posting with
181. 8:43the characteristic of how it would be
182. 8:45viewed
183. 8:47from its first
184. 8:49utilization. That's not first
185. 8:50presentation.
186. 8:52First presentation is in reference to
187. 8:54time.
188. 8:56When it formed.
189. 8:57How it forms is the
190. 9:01first utilization. By that I mean this
191. 9:03candlestick opened with a small little
192. 9:06volume imbalance between these candles
193. 9:07here.
194. 9:08And we rallied up and we have a small
195. 9:09little volume imbalance here.
196. 9:11So, this is a buy side imbalance sell
197. 9:12side inefficiency. If the market was
198. 9:13bullish
199. 9:15I told you last night we're going lower.
200. 9:18Then this should have supported price go
201. 9:19higher, but if it fails it'll act as an
202. 9:22inversion fair value gap. First
203. 9:24utilization here
204. 9:27okay, would look like this as well.
205. 9:31Bullish
206. 9:33expectation if the market was bullish. I
207. 9:35told you last night, it's bearish.
208. 9:38We hit
209. 9:39Tuesday's first relative everybody got.
210. 9:42Hits it beautifully, nice sharp sell
211. 9:44off.
212. 9:45Okay? So, in this little area here,
213. 9:47that's my first opportunity
214. 9:49to see this change
215. 9:51from its first utilization
216. 9:53of a
217. 9:55bullish PD array, if market was bullish.
218. 9:57But, my view is the market's bearish.
219. 9:59So, I'm going to use this bullish PD
220. 10:01array
221. 10:02and apply
222. 10:03the inversion aspect.
223. 10:07So, now I'm going to look at it like
224. 10:07that.
225. 10:09Okay? And I'm going to look for this to
226. 10:11fill, too, but I'm going to keep that
227. 10:12huge just like that
228. 10:14to show you where the entry was.
229. 10:17So, I go into
230. 10:22watch right here.
231. 10:24See it?
232. 10:28Right there.
233. 10:30Now,
234. 10:33that fills right there inside that
235. 10:34inversion fair value gap in the volume
236. 10:36of balance. See it?
237. 10:38Right there. Boom.
238. 10:40Little bit of heat right there, not
239. 10:41much. Momentary, little stinger.
240. 10:45That wick right there, as long as
241. 10:47there's no body above the midpoint of
242. 10:49that,
243. 10:50it doesn't even touch the midpoint,
244. 10:52it's okay.
245. 10:54Breaks lower. Now, this, because we
246. 10:57traded outside of it with that close
247. 10:58there, this should act as an inversion
248. 11:01fair value gap. This is why you didn't
249. 11:02see two rectangles here, cuz it would
250. 11:04have been too much.
251. 11:05It would have been very confusing
252. 11:06watching the trade execution.
253. 11:09So, you saw it just with this.
254. 11:11Okay?
255. 11:13And then this is a breaker. So, we have
256. 11:14high, low,
257. 11:16higher high.
258. 11:18Down close candle with the lowest close,
259. 11:20that's this one right here.
260. 11:22That's why I annotated.
261. 11:24If you would have used these two
262. 11:26consecutive candles here and used the
263. 11:27low of that, there's not nothing really,
264. 11:30you know, inherently wrong about that.
265. 11:32You would you would feel much more
266. 11:35victorious in regards to where it tries
267. 11:38to say it hits that there, but done as I
268. 11:41teach,
269. 11:44that's how it really is. So, my
270. 11:46interpretation my interpretation,
271. 11:48rather, is this is the real breaker.
272. 11:51And we failed to touch it. So, if my PD
273. 11:53array that should perform as a premium
274. 11:55array can't even be traded to,
275. 11:58what does that indicate? By my
276. 12:00definition as Michael Huddleston,
277. 12:02the author of all these concepts, our
278. 12:03money concepts, order flow is if a
279. 12:06premium PD array cannot be traded to
280. 12:11or its consequent encroachment level
281. 12:13can't be traded to or it can't leave a
282. 12:15body in its respective upper half,
283. 12:19that is bearishness. If it can't even
284. 12:21touch it like it does here,
285. 12:23that's extremely bearish.
286. 12:26Very, very interesting, isn't it? Look
287. 12:28how fast this choppy falls.
288. 12:30It's wonderful.
289. 12:32So, from this entry up here,
290. 12:34riding all the way down to the level I
291. 12:35told you we would reach for
292. 12:37overnight and the last 2 days, which is
293. 12:41Monday's regular trading hours opening
294. 12:42range gap consequent encroachment
295. 12:44midpoint level. And I used this low and
296. 12:47then I split that old consequent
297. 12:49encroachment level
298. 12:51at 28,998.25.
299. 12:56That's this red line here.
300. 12:57And this old area here, I I split that
301. 13:00in half. I did event horizon, so I took
302. 13:03a partial of the three contracts I was
303. 13:05short. I took one right there, one
304. 13:08halfway between this low and Monday's
305. 13:11consequent encroachment, and then I took
306. 13:12it right at a move just below
307. 13:16regular trading hours opening range gap
308. 13:17consequent encroachment from Monday's
309. 13:19trading.
310. 13:20So, those fills are here
311. 13:24and there.
312. 13:25And then we had this nice little
313. 13:26retracement in here right on time.
314. 13:30And I'll get back to that entry in a
315. 13:31moment. And it drops aggressively here,
316. 13:34washes out anyone that may have went
317. 13:36long on consequent encouragement.
318. 13:39Completely
319. 13:42decimated anyone, which was diabolical
320. 13:43there.
321. 13:44And rallies up.
322. 13:46And bullish order flow, every fair value
323. 13:49gap and down close candle starts
324. 13:51supporting price.
325. 13:52And it's in a hurry. What's it going to
326. 13:53do? It's going to go right back up into
327. 13:56that 60-minute buy side imbalance sell
328. 13:58side inefficiency.
329. 13:59And trades right to the highest octant
330. 14:02before we get to the
331. 14:03close
332. 14:06of the relative trading hours opening
333. 14:07range gap for today.
334. 14:11Okay, so
335. 14:14this is where we're at now.
336. 14:16Okay, and those relative equal highs
337. 14:21right over here, that's the next
338. 14:23bit of business. So, we'll And I take
339. 14:25that. It may get there before you get to
340. 14:28see the video, but it's okay.
341. 14:30I promise you it's okay. You'll be
342. 14:31You'll be fine. This stuff keeps
343. 14:32repeating.
344. 14:34You don't need to see me doing it live
345. 14:35so you can copycat me. I don't I don't
346. 14:37want that. I don't want that for my
347. 14:38students.
348. 14:39And I'm certainly not going to speed
349. 14:40feed the frauds that pretend they know
350. 14:42this stuff already or they learned it
351. 14:43from some other school of thought and
352. 14:44it's been rebranded. Uh the bounty is
353. 14:46still out there, by the way, $5 million
354. 14:47if you can find out where this
355. 14:48information comes from if it ain't from
356. 14:50mine.
357. 14:51Hm.
358. 14:52It's funny how you can't do that.
359. 14:53Y'all going to work still, but you could
360. 14:55say, "I ain't going to work. I'm taking
361. 14:56the old man up on it. I know where it
362. 14:57came from." Cuz you don't You don't know
363. 14:59where it came from.
364. 15:01>> [sighs]
365. 15:02>> But it's coming from the the horse's
366. 15:03mouth right here, folks. So, again,
367. 15:06uh
368. 15:07I I think
369. 15:09>> [snorts]
370. 15:09>> I think the last month and a half has
371. 15:11been a pretty good testimony to um
372. 15:15how these things work,
373. 15:17how consistent they are. Um yesterday,
374. 15:19forced into a high resistance liquidity
375. 15:21run condition, you can see, even in my
376. 15:24own hands, it's it's going to be very
377. 15:25hard.
378. 15:26But, when the market's giving everything
379. 15:28like it's supposed to be, I gave you the
380. 15:29last night that we were going to go
381. 15:31lower. We're going to trade into
382. 15:32Monday's opening range gap.
383. 15:35And we're always aiming for consequent
384. 15:37encroachment. It doesn't have to be the
385. 15:38same day.
386. 15:40We were aiming for it yesterday, for
387. 15:41Tuesday, for Monday's opening range gap.
388. 15:44Overnight, I told you we're probably
389. 15:46going to go lower and go into that gap
390. 15:47again.
391. 15:49We did.
392. 15:50And first presented fair value gap from
393. 15:52Tuesday.
394. 15:56Lower. And some of you actually took
395. 15:58this trade.
396. 15:59And I'm very proud of that. I'm I'm very
397. 16:01happy to see you guys doing that stuff.
398. 16:03Uh cuz you didn't know I was doing that.
399. 16:05I just presented this to extend it over
400. 16:09into today's trading.
401. 16:11And we get it as the short here.
402. 16:13I was hanging out with Caleb. So,
403. 16:16I wasn't able to do anything to get
404. 16:17this. Otherwise, I would have went long
405. 16:18there.
406. 16:19And took partials right at consequent
407. 16:21encroachment of the Wednesday 60-minute
408. 16:24or 1-hour by side imbalance sell side
409. 16:26inefficiency as it's indicated here.
410. 16:28And then,
411. 16:30as we're getting closer up here, if you
412. 16:31split this into the octants and the
413. 16:34upper quadrant, that right there would
414. 16:35have been a partial, too. And then I
415. 16:36would have like one or two contracts.
416. 16:39I think I earned the right to be able to
417. 16:40talk like this, by the way. You know, it
418. 16:42it it can I feel uncomfortable doing it
419. 16:44sometimes because
420. 16:46some of the people in the community are
421. 16:48just really really
422. 16:52selective. And they they they don't they
423. 16:54don't want to recognize the fact that
424. 16:56I'm telling you these things before they
425. 16:58happen. And what they focus on, the
426. 16:59direction where it's likely to go, and
427. 17:01then market goes there. And then I'm
428. 17:02showing executions
429. 17:04around that same premise.
430. 17:07They don't have anything to say about
431. 17:08that. But, if I say something like, if I
432. 17:11would have been in this trade, this is
433. 17:12how I would have managed it.
434. 17:15Because I don't have an execution on
435. 17:16that, they'll they'll spin that into
436. 17:19some kind of an argument. So, it's kind
437. 17:21of like
438. 17:23it sounds like liberalism to me. But,
439. 17:26that's the next draw there. Okay, so if
440. 17:28I had two contracts on, I would take one
441. 17:29off right as we get to the the high that
442. 17:32gray shaded area.
443. 17:33Not at the high, but just below it,
444. 17:35maybe two ticks and a half.
445. 17:38And I would like to see if I can reach
446. 17:39above
447. 17:40the 29,352 level, and then I would be
448. 17:43content with that for today.
449. 17:45So, that's a little bit of a review this
450. 17:47morning. Hopefully, you guys got
451. 17:49something out of the last couple
452. 17:51lectures this week.
453. 17:53Um I don't know if I'll be able to do
454. 17:55anything the rest of the evening. Um my
455. 17:57wife and I have plans.
456. 18:00And we'll you know, we'll see what's up.
457. 18:03Um if I can squeeze something in short
458. 18:05right after the the 4:00 p.m. close,
459. 18:07I'll try. I can't make any promises.
460. 18:10But, unless
461. 18:12that's not likely to happen or doesn't
462. 18:14happen, Lord willing, I'll try to touch
463. 18:17base with
464. 18:18base with you tomorrow morning uh before
465. 18:20the 9:30 opening bell, and uh
466. 18:22we'll go at it again.
467. 18:24Until then, I wish you good luck, good
468. 18:25trading, and be safe.