YouTube transcript (9YS41OoxbX4) — Transcript

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1. 0:01All right, so we're going to be doing a
2. 0:04bullish fair value gap here.
3. 0:06This is a tape reading session I did and
4. 0:08I'm doing an overlay of
5. 0:10commentary, but you can see everything
6. 0:11was done
7. 0:13as it was happening or just before it
8. 0:15actually happens.
9. 0:17And this is during the macro between
10. 0:199:50 and 10:10 a.m. Eastern time.
11. 0:23Mark come back down into the bullish
12. 0:25fair value gap. I want to see it rally
13. 0:27up into that minor buy side liquidity
14. 0:28pool.
15. 0:29But here's the first presented fair
16. 0:30value gap and it forms as a sibi. So
17. 0:33since I'm bullish looking for 29,950
18. 0:35as I indicated on X this morning.
19. 0:39I'm interested in seeing it come back
20. 0:41down and touch that.
21. 0:43So there would have been a target
22. 0:44reached
23. 0:47at that minor buy side liquidity. So a
24. 0:48partial would have been taken there.
25. 0:51And then because of the event horizon
26. 0:54between 29,950 and the
27. 0:57initial high formed after the first few
28. 0:59minutes of opening regular trading
29. 1:01hours.
30. 1:03I have a limit
31. 1:04idea in in Erie with a alert. So when
32. 1:08market gets up there and
33. 1:10attacks that, that would
34. 1:13constitute an example of a
35. 1:16executed partial. So two partials would
36. 1:18have been taken
37. 1:20should that take place.
38. 1:25You see the market pulling back down
39. 1:26inside the range, which is completely
40. 1:28normal. Now I'm watching this if this
41. 1:30provides support to price action. And
42. 1:33this is the again the first presented
43. 1:34fair value gap.
44. 1:36And it's going to be viewed as a bullish
45. 1:39inv- inversion fair value gap.
46. 1:41Look at the bodies, okay? Look at the
47. 1:43bodies.
48. 1:44And
49. 1:46now look at how prices meander around
50. 1:48inside that
51. 1:50green bullish
52. 1:52buy side imbalance sell side
53. 1:53inefficiency. So again, note the bodies
54. 1:57at the high of that first presented fair
55. 1:58value gap.
56. 1:59We came down one more time, tapped it.
57. 2:02Now, it should have no problem running
58. 2:03up into
59. 2:05that minor buy side.
60. 2:07Pulling back into that lower portion.
61. 2:10Watch the bodies
62. 2:11inside that green fair value gap.
63. 2:14See how it's pulling up higher?
64. 2:19So, again, event horizon when it's
65. 2:21trading up into it. I like to be getting
66. 2:23out right before it hits it.
67. 2:26So, again, partials would have been
68. 2:27taken twice
69. 2:29when price books here. So, tape reading
70. 2:30after
71. 2:32extended periods away from price action
72. 2:33is critical
73. 2:34for visibility and accuracy. This is how
74. 2:36I get myself back in sync with price
75. 2:38action. I've been away from it for a
76. 2:39couple weeks now.
77. 2:41Just taking a break and just staying
78. 2:43away from social media.
79. 2:46Recharging, basically.
80. 2:50All right. You see the market then now
81. 2:51using the inversion fair value gap.
82. 2:55Now, I'll go into the details why all
83. 2:57these things were likely to occur
84. 2:58anyway, but
85. 3:00you can see it's live price action. It's
86. 3:02not market replay. It's
87. 3:04me just watching and reading price. And
88. 3:06I I want to kind of also
89. 3:08state this. I'm not going to be doing
90. 3:10any more execution videos. I think I
91. 3:12think I've done enough of them. I know
92. 3:13they're pretty pop- popular, but they're
93. 3:16being abused. People are using them to
94. 3:17try to market themselves as profitable
95. 3:19traders or mentorship.
96. 3:21And there's that fill
97. 3:23right there.
98. 3:27So, the event horizon would have filled
99. 3:29and the minor buy side liquidity would
100. 3:31have filled on two partials.
101. 3:36And I want to see it kind of like
102. 3:39move up into uh that 29950 level, which
103. 3:44is my terminus. Now, it can go a little
104. 3:45bit above that, but just for the sake of
105. 3:47describing where I think the market was
106. 3:49going
107. 3:50uh this morning,
108. 3:52uh I posted on X at 9:36 a.m. Eastern
109. 3:55time.
110. 3:58So, you can see market pulling back down
111. 3:59into
112. 4:01the old high formed around 10:15 a.m.
113. 4:04Eastern time.
114. 4:13Algorithmic price delivery
115. 4:15just really nice here this morning.
116. 4:21It's not feel you actually trying to
117. 4:22feed me.
118. 4:24I want to ask some of you deleted your
119. 4:25your post and that's
120. 4:27always fun
121. 4:28after the fact.
122. 4:301 minute chart of
123. 4:32Okay, um December
124. 4:34Nasdaq futures contract.
125. 4:37And
126. 4:38carrying over the idea of
127. 4:41what I showed this
128. 4:43morning.
129. 4:44I I tweeted, as you can see here,
130. 4:49there's the post
131. 4:519:30
132. 4:52this morning and that's how I was
133. 4:55pointing to. So, I wanted you to note
134. 4:57that price.
135. 4:58Okay, so having that
136. 5:00we can then go into
137. 5:04price action here.
138. 5:06And I'm going to go up to a weekly
139. 5:08chart.
140. 5:09All right, and I want to kind of show
141. 5:11you something.
142. 5:12I taught this
143. 5:14on a video that you can find on my
144. 5:16YouTube channel.
145. 5:17T G I F So, TGIF stands for Thank God
146. 5:22It's Friday. Okay, so
147. 5:24uh whenever we have a big
148. 5:26down week like we had last week, okay?
149. 5:30And I'll counsel you to look at the post
150. 5:32I made on Monday morning of last week.
151. 5:34Kind of like pre- It was like a
152. 5:35precursor to seeing this type of
153. 5:37delivery.
154. 5:40Wasn't typed out, but you usually know
155. 5:43I'm sharing something positive. I'll
156. 5:45share you like a sunrise or something,
157. 5:47you know, the animals around my
158. 5:48my home
159. 5:49early in the morning. Usually peaceful
160. 5:51type things, but uh
161. 5:55I kind of like wanted to prompt you last
162. 5:56week on Monday morning
163. 5:58that, you know, we had some trouble
164. 5:59coming.
165. 6:00It was a really big sell-off
166. 6:03uh for the week. But, we didn't come off
167. 6:05of the lows for TGIF, the weekly range.
168. 6:09And what I teach, and you'll find it in
169. 6:11that video, you can do a search on my
170. 6:13channel, TGIF,
171. 6:15and the rules are if you don't get the
172. 6:17TGIF formation on
173. 6:20the week after Friday's close,
174. 6:23the very next week on Monday, if there's
175. 6:25a holiday on Monday,
176. 6:27then it'll happen on Tuesday. Okay, but
177. 6:29as it were, we opened here,
178. 6:31and we traded right back up into last
179. 6:33week's range.
180. 6:35Now, I'm going to show you something
181. 6:36here.
182. 6:37Here is the
183. 6:39high down to the low. You see that?
184. 6:43So, this is
185. 6:4435%
186. 6:4720%. Now, why is 35%?
187. 6:50>> [sighs]
188. 6:51>> It can go as much as 40% and still
189. 6:53resume going
190. 6:55lower.
191. 6:57Okay? But, we're also going to look at
192. 6:59some factors
193. 7:00that leads to why 35% of the range
194. 7:05is likely to occur. And we'll drop back
195. 7:06down to 1-minute time frame to
196. 7:07accomplish that.
197. 7:09Again, we're we're inside regular
198. 7:10trading hours
199. 7:12chart, so that we can see that.
200. 7:15And
201. 7:16we're going to go and scrub back over to
202. 7:20this morning.
203. 7:22All right, so here's the opening range
204. 7:23gap
205. 7:24for regular trading hours this morning.
206. 7:27And there is the minute marker right
207. 7:29there. Watch, right here. See that?
208. 7:32That candlestick
209. 7:35right there is where I posted it.
210. 7:38Okay, again,
211. 7:40October 19th, 2026,
212. 7:429:36 a.m. All right, so I'm going to
213. 7:45move this out of the way so we can see
214. 7:47everything else.
215. 7:50So, we open up here. We had a premium
216. 7:52gap.
217. 7:53Now, think,
218. 7:55we didn't get TGIF last week.
219. 7:58So, it's likely to do what? Draw up into
220. 8:00the weekly range from last week.
221. 8:02How much? 20 to 30%? As much as 40%?
222. 8:07So, if the usual standard recipe for TGI
223. 8:11Fridays is standardly delivered to 20 to
224. 8:1430% of the weekly range,
225. 8:15uh we can always look for reasons to
226. 8:18anticipate something beyond that in
227. 8:20terms of uh
228. 8:22of a retracement, and I'll explain in a
229. 8:24second.
230. 8:25So, we have
231. 8:27the market having
232. 8:29past 20% of the opening range gap, which
233. 8:31is here.
234. 8:32So, that was 21,571 in the red.
235. 8:36We consolidated in here. The very first
236. 8:38gap that formed here at 9:38 a.m.,
237. 8:421-minute time frame, it's a sibi.
238. 8:44So, when we have price create that, it's
239. 8:47likely to start seeing a willingness
240. 8:49want to go lower. Look what it was
241. 8:50already
242. 8:52like predicting that with the bodies.
243. 8:54The wicks were showing an attempt to try
244. 8:56to get above it, but the bodies were
245. 8:58telling you the narrative. Okay, so the
246. 9:01folks that like to believe in buying and
247. 9:02selling pressure,
248. 9:03uh my interpretation of reading price
249. 9:05action algorithmically will tell you
250. 9:07what that buying and selling pressure
251. 9:09proverbially would be. Okay, if you want
252. 9:11to
253. 9:12look at that way, that's fine.
254. 9:14So, the market re- uh reaches lower than
255. 9:16this short-term low here, so we have
256. 9:18sell side being taken, and it trades
257. 9:20down to 25%.
258. 9:22See that? 25% of
259. 9:25the opening range gap.
260. 9:28Uh what else is it doing?
261. 9:31It's trading down to that 20%
262. 9:35of the weekly range, previously previous
263. 9:37weekly range.
264. 9:39See that? That's what that
265. 9:41.0 or 0.2 is.
266. 9:45And then, the market
267. 9:48creates that drop during the macro
268. 9:50between
269. 9:519:50 a.m. Eastern Time and 10:10 Eastern
270. 9:54Time.
271. 9:56We have a gap here that forms once we
272. 9:57have a little bit of a rip higher,
273. 10:00and then we drop back down into it. Now,
274. 10:01look what's going on here. See the
275. 10:03bodies?
276. 10:05That's how you know when the buying
277. 10:06pressure is really buying pressure.
278. 10:09You like that? So, the are staying at or
279. 10:12above the midpoint of this
280. 10:14bullish fair value gap.
281. 10:16That is bullish order flow.
282. 10:18You see that? No gimmicks required,
283. 10:21okay? So, when it does this, you can
284. 10:23anticipate price reaching back up into
285. 10:25very minimum first presented fair value
286. 10:27gap.
287. 10:28And then reaching for minor buy side.
288. 10:31And I moved that line up to here and you
289. 10:33see that in the recording that I just
290. 10:34started. I also shared it this morning
291. 10:36on the X immediately after it was done.
292. 10:40So, the market used that fair value gap
293. 10:42here, rallied higher, then used the
294. 10:45perfect consequent encroachment level.
295. 10:47Opens here, trades down to it there,
296. 10:49inversion fair value gap.
297. 10:51Rallies.
298. 10:53Takes out the minor buy side.
299. 10:55Creates a short-term high here, trades
300. 10:57lower.
301. 10:58This area here I wanted to see the
302. 11:00bodies really start showing some
303. 11:02indication that it wants to move higher
304. 11:04much in the same vein that it did here.
305. 11:07So, the all the bodies are or inside of
306. 11:10that first presented fair value gap even
307. 11:11though it had all these wicks.
308. 11:13It was likely to draw down first cuz if
309. 11:16we're bullish, we want to see price
310. 11:17trade lower first and clear up some
311. 11:19liquidity. That's engineered liquidity.
312. 11:22And gets people offside looking for
313. 11:24breaks out breakout and such. And the
314. 11:27risk was initially defined to consequent
315. 11:30encroachment. There after it rallied up.
316. 11:33The trade idea would start with risk.
317. 11:39Right there at the middle of that wick.
318. 11:42So, consequent encroachment would start
319. 11:43there. So, buying in here, risk would be
320. 11:46here.
321. 11:47When it starts to rally up and then you
322. 11:49can see how we moved it
323. 11:52to there after we started really moving
324. 11:53higher. And there was two forms of a
325. 11:55partial hypothetically explained as live
326. 11:58price action was being delivered.
327. 12:00I made a notation in here, note the
328. 12:02bodies here.
329. 12:04And look what they're doing. They're
330. 12:05supporting the idea of this first
331. 12:07presented fair value gap. That's
332. 12:08probably random.
333. 12:09And you probably find that in about oh,
334. 12:11I don't know, 60, 70, 300 books in
335. 12:14retail logic, right? That's what they
336. 12:15tell you on the internet.
337. 12:17And and let me just toss this in here. I
338. 12:19am aware of the big news that came out
339. 12:21on social media today.
340. 12:23Uh but I'm going to stay above it, okay?
341. 12:25I'm not I'm not interested in in
342. 12:27dumpster diving, so I'll just leave you
343. 12:29all to that.
344. 12:30Market trades back down into that first
345. 12:32instance fair value gap, rallies higher.
346. 12:33And now look what we have here. The
347. 12:35bodies are supporting
348. 12:37this bullish consequent balance side
349. 12:39inefficiency.
350. 12:41And
351. 12:43it rips up into this inversion fair
352. 12:44value gap.
353. 12:47We trade lower one more time, taps into
354. 12:48it there. The bodies, look, see what's
355. 12:51happening? We can't drop a body outside
356. 12:53of that.
357. 12:55So, this suspension block is being
358. 12:57supported here.
359. 12:58We have a fair value gap there, it
360. 13:00trades down into that. Look where the
361. 13:02bodies are.
362. 13:03It's indicating that it's bullish order
363. 13:05flow.
364. 13:06High, high, relative equal highs, minor
365. 13:08buy side. It rips higher there. And then
366. 13:11takes out
367. 13:15the event horizon. Event horizon is the
368. 13:18difference between the
369. 13:19level I posted this morning, 29,950,
370. 13:23and the initial high that formed here.
371. 13:25I'm sorry.
372. 13:26The hit formed here, sorry. So, by
373. 13:29having
374. 13:31the midpoint between this high
375. 13:34and the 29,950 level that
376. 13:37is here. And you see that next to be
377. 13:39done in the recording that started with
378. 13:41here. And again, shown this morning.
379. 13:44Then finally, it rips above 29,950
380. 13:47and then goes up into 0.35%.
381. 13:50Now, why is that an unlikely scenario
382. 13:53there? Well, let's go over here. We'll
383. 13:54scrub back over to the left-hand side.
384. 13:56And we'll bring it into this little
385. 13:58video. So, here's some relative equal
386. 13:59highs, so you know what's going to be
387. 14:00above that.
388. 14:01Buy side imbalance, I'm I'm sorry, buy
389. 14:03side liquidity.
390. 14:04And then, to the left of that, what do
391. 14:06we have? We have a gap. Look at that.
392. 14:09So, what do I teach you when there's a
393. 14:10gap just to the left of wherever you
394. 14:13think price is going to go?
395. 14:15If there's a wick, the wick takes
396. 14:17precedence.
397. 14:18Well, that's what this is right here,
398. 14:20folks.
399. 14:21This is part of that gap.
400. 14:23It's in there.
401. 14:25So, we look past this gap.
402. 14:27Everybody else thinks they're in there
403. 14:28staying in efficiencies, and they have
404. 14:30all kinds of mythology around what I
405. 14:32supposedly know or don't know, what I
406. 14:34authored, what I didn't author.
407. 14:36And you know,
408. 14:41I'm getting
409. 14:43worn out
410. 14:44with the the ignorance of some people.
411. 14:47I'm just blocking people now.
412. 14:49And
413. 14:50you'll know if you go through my content
414. 14:51that I teach that if there's a wick to
415. 14:53the left of a gap,
416. 14:55your focus is on this.
417. 14:58Okay? And now we're going to go in here
418. 15:00and change these levels, which is
419. 15:02TGIF. And we're going to simply going to
420. 15:04put in
421. 15:06that midpoint level, which is consequent
422. 15:08encroachment. See that?
423. 15:10Now, watch the magic in this.
424. 15:12It can go up to here if it's going to be
425. 15:14bearish still.
426. 15:16It can trade that high
427. 15:17above the relative equal highs.
428. 15:20There.
429. 15:22But I'm just going to look at 29,950.
430. 15:24Why? Because I'm teaching you as my
431. 15:25students this as the low-hanging fruit
432. 15:27objective.
433. 15:28That's the easy thing to reach for.
434. 15:30The technical science required all these
435. 15:32other things here.
436. 15:34But this was the basis as to why I felt
437. 15:36that this is
438. 15:37likely to deliver.
439. 15:39This is the easy stuff cuz it's part of
440. 15:41and incorporating TGIF into a new week
441. 15:45from last week's total weekly range.
442. 15:48Since we didn't get TGIF last Friday or
443. 15:51Thursday, we had it carry over into the
444. 15:53new week, and you see that taught in my
445. 15:57TGIF
446. 15:58uh lecture on our
447. 16:00uh compendium on this YouTube channel.
448. 16:02So, here's that uh wick consequent
449. 16:04encroachment. Now, we're going to walk
450. 16:06it out over here.
451. 16:09I'll go slow so you can see the effects
452. 16:11of how price Look at that. Isn't that
453. 16:13beautiful?
454. 16:14Now, I'm sure I'm sure Gann or Wyckoff
455. 16:17or
456. 16:20um name whoever you want to name, I
457. 16:22don't care. I'm basically thumbing my
458. 16:24nose at all of it cuz they didn't teach
459. 16:26this stuff, folks. They really didn't.
460. 16:28And we have minor buy side that formed
461. 16:30here and we rallied up into it. We
462. 16:32cleared
463. 16:330.
464. 16:3435 of the weekly range and then we
465. 16:37cleared into that consequent
466. 16:39encroachment. Beautifully delivered. And
467. 16:41then wouldn't you know it, it gives up
468. 16:43the ghost.
469. 16:44Comes right back up to what level?
470. 16:48What's the high of that candlestick?
471. 16:5129,976
472. 16:54even.
473. 16:56That's exactly 0.35%.
474. 17:00Now, if these lines were a little bit
475. 17:02higher, we could have used 0.4, which is
476. 17:05exactly what I teach in the TGIF. It can
477. 17:08go as much as 40% of a retracement. And
478. 17:11again, that's assuming everything being
479. 17:14uh equal and the longer term direction
480. 17:17is still going to work out in one
481. 17:19direction. In other words, the direction
482. 17:20of the previous week's range.
483. 17:24We have a wick here. Split that as
484. 17:27consequent encroachment. You can see
485. 17:28none of the bodies are breaking above
486. 17:29that. So, all of this is distribution.
487. 17:32Breaks lower heavily and terminus is
488. 17:34then
489. 17:36traded back down through. Come all the
490. 17:38way back down into
491. 17:41this gap here.
492. 17:45Back down into
493. 17:48this inefficiency there.
494. 17:51Beautiful delivery that octant on the
495. 17:53opening range gap.
496. 17:55And then we meandered around
497. 17:58here till we finally settled.
498. 18:01So, I I I think that today was a good
499. 18:04little example of me
500. 18:06tape reading, giving you something in
501. 18:07advance. I didn't give you multiple
502. 18:09levels.
503. 18:10I didn't give you a whole lot of moving
504. 18:11parts. And that that's kind of like what
505. 18:13I teach you as a student to focus on.
506. 18:16You don't have to have a thousand PD
507. 18:18arrays. You don't have to have all kinds
508. 18:19of scenarios. You're not trying to to
509. 18:21catch the high and the low of the day.
510. 18:22You're not trying to catch every single
511. 18:24little fluctuation. You just got to
512. 18:25blend some things that make sense from a
513. 18:27higher time frame macro perspective.
514. 18:29Okay? So, hopefully this was insightful
515. 18:31until I talk to you next time, Lord
516. 18:33willing. Be safe.