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0:02Good morning, Caleb. How are you?
0:07>> So, we're looking at a new month that
0:10begins tomorrow. Today is August 31st,
0:132026.
0:15And kind of like walk you through a new
0:18week, a new month. Uh we're entering the
0:21seasonal tendency months where
0:24market price delivery gets a whole lot
0:27better. It gets very clean. Um it's just
0:31a lot of economic drivers come into the
0:33marketplace because of the holidays, end
0:36of year spending.
0:38So it's going to be uh in my opinion a
0:41whole lot better in terms of price
0:42action. But we want to take a look at
0:44the economic calendar and what I have up
0:45here is Forex Factories economic
0:48calendar. I've zoomed in as much as I
0:51could that way everything could be
0:52shown. More specifically to block all
0:54the advertisements because I don't do
0:56advertisings for companies on other
0:59people's websites. So
1:02I have every filter
1:09turned on right now. Okay. So,
1:13one of the most important things I like
1:15to do since I'm not actively trading
1:17forex right now, but if you are trading
1:19forex, any pair that would be germanine
1:23to whatever pair you're trading or
1:25currency you're trading, you would have
1:27that toggled. So, since I'm not
1:28concerned about that at the moment,
1:31forex will be back on the menu soon, but
1:34as it is right now, it's not. So, we
1:36won't be doing anything with that. But
1:37we do want to toggle the US dollar. And
1:40then over here, I'm not so concerned
1:43about the gray box area or the yellow,
1:46but I'm going to keep it on today
1:47because I want you to see and your your
1:51brother Caden, I want him to see the
1:53difference between the important medium
1:56impact
1:57and high impact.
2:00So these right here, they're low impact.
2:02It doesn't mean that you can't have
2:03fluctuations in price action around
2:05them. I'm not concerned about them. And
2:09the gray usually is just for like
2:10speeches, things of that nature. So, you
2:13want to know a little bit about some of
2:15that stuff. And all these things here,
2:18we'll just keep that in play. And we
2:22apply it
2:24and it condenses the the list of things
2:27that was
2:29larger.
2:31Now it's smaller. Okay. So, we took out
2:33all the foreign currency related things.
2:36So as you can see we have G20 meetings.
2:39It's low impact but still it has an
2:41impact. The the absence of anything
2:47significant for either high impact or
2:49medium impact and again you would
2:51recognize them with the little folders
2:53in this column. So where it says impact
2:55straight down there.
2:57So, generally what I like to do is on a
3:00weekend,
3:02and we're doing it this week because I
3:03already told everybody I wasn't taking
3:05any trades this week. They think I'm
3:06lying.
3:08Whenever I say sincerely, it means I'm
3:10sincere about what I'm saying. I'm not
3:11joshing anybody. I'm not trying to be
3:13sarcastic.
3:16But
3:18we have a light economic calendar on
3:21today. And then we have for the first
3:24day of September,
3:26we have ISM manufacturing PMI at 10:00
3:29a.m.
3:30we have the Jolts jobs opening medium
3:32impact. So at 10:00 tomorrow, there's a
3:37lot of interest around the data that
3:39comes out at that moment. So
3:44Monday is pure price action because it's
3:47non-farm payroll Friday, which I'll show
3:49you in a moment. Every Monday of
3:52non-farm payroll is a day that you
3:55should be drilled in and trying to find
3:57a setup. Any other Monday, it's pot
4:01luck, meaning that it could give you a
4:03good day, but sometimes it won't. Just
4:06means that you have to know what you're
4:08doing with experience. New traders, I
4:09try to tell the new trader, don't be so
4:13demanding to get into,
4:17I guess, a setup every Monday. And
4:20because the importance of patience and
4:23building a a disciplinary approach to
4:27engaging the market is crucial in the
4:29beginning because whatever you start
4:31doing
4:32in the beginning tends to stay with you.
4:35And if you're toxic about what you're
4:36doing and how you think and and the
4:38reactions of trying to do something you
4:40don't know or rushing to try to, you
4:42know, take trades or try to assume
4:45you're correct. And if you're not
4:47correct in the beginning, which is
4:48natural, it's normal because you don't
4:49know exactly what you're doing yet. Uh
4:52it can weigh on you mentally and
4:54psychologically and it's very easy to
4:56talk yourself out of doing this at all.
4:57So
5:00when we're looking at the economic
5:01calendar,
5:03we are seeing where the big waves of
5:08interference
5:10with normal price delivery occur. And
5:13that's going to be determined by the
5:15orange and red folder events. And note
5:18the time that they form and on what day
5:20they form. So, as I mentioned, we'll
5:24just breeze right through it real quick.
5:25On Tuesday, the big hitters 10:00
5:28ISM manufacturing PMI and Jolts job
5:31opening.
5:33On Wednesday, we have at 8:15 non-farm
5:37payroll employment change.
5:40Thursday is a day where new traders
5:43should not be engaging price action, but
5:45they should be studying it. Uh at 8:30
5:47we have unemployment claims and then ISM
5:50PMI at 10:00 a.m. And then finally,
5:54Friday
5:56right here we have average hourly
5:58earnings,
6:01non-farm payroll
6:03change, and employment rate. This is
6:06where the market gets wonky at 8:30. It
6:08usually does all kinds of crazy stuff
6:12and it's all using uh moving on fake
6:14data because for years now our
6:16government has been putting out fake
6:18data and it's unreliable. So I don't
6:21care about what the data is. I don't
6:23care about the the actual numbers. I
6:25don't care about the change in the
6:26numbers because they're always going to
6:27revise them later on and this it just
6:30proves that data is false. I don't know
6:32why people can't recognize that in
6:34trading. Nobody really spends too much
6:36time talking about that, but they just
6:37know that that report at 8:30, usually
6:40the first Friday of every month,
6:42non-farm payroll, creates volatility.
6:44And that volatility is like a flame. And
6:48every little moth flies closer and
6:50closer closer to that flame and they get
6:52burned. I teach my students, whether
6:54they're brand new or they don't have a
6:55lot of experience to avoid trading on
6:57Thursdays and Fridays of non-farm
6:58payroll week up to 11:00 in the morning,
7:02Wednesday. That's like your safe spot
7:04for finding setups that are not meant to
7:08cannibalize you as much as Thursday and
7:10Friday of non-farm payroll. So, if
7:12you're brand new, you're generally going
7:14to be challenged on Thursday and Friday
7:15of that week every month. If you focus
7:18your attention on Mondays for certain
7:21because everybody's going to want to try
7:22to say save themselves the trouble of
7:25traveling through dangerous waters on
7:27Thursday and Friday. So, they're going
7:29to try to get their pound of flesh,
7:31their profit, their little piece of uh
7:33the cake as soon as they can right out
7:36the gate on Monday.
7:38So, that's always a given. And I teach
7:40this all the time. And somehow over the
7:42years, people have said, you know,
7:44Michael or ICT says never trade on
7:47Mondays. And that's not true. That's not
7:51true at all. So, what I just said is the
7:53actual definition of why I say what I
7:55say about Mondays. Every nonfarm payroll
7:58Friday is an absolute guarantee that you
7:59should be in your seat trying to find a
8:01setup because it's going to be there.
8:04Every other Monday is hit or miss based
8:07on your experience. Now, my experienced
8:09students and myself obviously I can sit
8:10down and find a setup every single
8:11Monday, but I want to be practical as an
8:14educator and not say that you should be
8:17able to find setups in a Monday that's
8:20not related to the week of non-farm
8:22payroll. So I include that here just for
8:24the sake of people that hear nonsense on
8:26the internet now they've been schooled
8:27in regards to that. So we have basically
8:31a light calendar today. So we have to
8:33rely entirely on price action which is
8:35fine. Tomorrow
8:38um we'll have a 10:00 news driver. So
8:42that means usually you want to wait for
8:45the first 30 minutes of trading and let
8:48let whatever sets up in terms of
8:50liquidity or inefficiency prior to that
8:5210:00 news. Let the news hit and then
8:56work with what's in the wake of that on
8:59Wednesday. You know, you want to be done
9:02by 11:00. Let's just say it that way.
9:04And then the rest of the week, we
9:06already said it's a is a no touch for
9:07for a new student. Like for instance, if
9:09say Kaden was prepared to uh start
9:12engaging price action with a demo
9:14account, which is technically not yet,
9:17he should not be trying to do it on
9:18Thursday and Friday this week. Does that
9:20make sense?
9:21>> Yes.
9:22>> All right. So,
9:25with that, let's go over to the chart
9:26now. Give me a second. Let me transition
9:27over to that.
10:04You should see the uh NASDAQ daily
10:06chart.
10:12All right. So,
10:14what we have here is the highest high
10:17and the lowest low of each daily range
10:21for September delivery contract of the
10:23E- mini NASDAQ.
10:26Okay, as you can see up here,
10:29not that it matters, but the market is
10:30open
10:32and we're not trying to do anything over
10:35live price action. We're just kind of
10:37like getting a feel for what we should
10:38be doing on a week-by-eek basis. This is
10:40technically something you should be
10:42doing on a Saturday evening um or a
10:46Sunday afternoon before the market opens
10:48up. It only takes a little bit of time.
10:50I'm taking more time talking about
10:52explaining why it's important, why it's
10:53salient, what what the benefit is of it
10:56is. That's kind of like what this
10:57message is going to be about. So, it
10:59kind of like gives you a primer for how
11:02to prepare for the week to come. So, we
11:05already have the benefit of having some
11:07trading happening today. So, if you were
11:10disregarding this candle, we would have
11:13been left with just Friday's candle,
11:15Thursday,
11:16Wednesday, Tuesday, and Monday. All
11:18right? So,
11:20let's go through a bit of business here.
11:23Um, let's go to a a monthly chart real
11:26quick.
11:34All right. So, what you want to do is
11:36you want to note the previous month's
11:38high. And this is
11:40that right here is July.
11:46That's the high
11:51low
11:55and where we stop trading
12:02and you want to label that.
12:05So you double tap on it.
12:08Your details for changing things and
12:10settings will pop up. You go to text
12:13You want to put in here
12:16that you're looking at the
12:25what am I on?
12:27Let me check which one I was doing.
12:28Let's start with the top one first.
12:32July
12:35monthly high.
12:39And you want that to be
12:42in the middle, right? Justified. So
12:44it'll be over here.
12:48And things like this very, very high
12:50time frame, you want them to be bold and
12:52black.
12:59And here you're going to do the same
13:00thing.
13:18middle right justified
13:21in the same bit of business here.
13:24And you see it doesn't take very long to
13:25do this,
13:32but having these
13:35annotated on your chart and making sure
13:37that they show on all time frames.
13:44Okay? And you want them to show on every
13:49minute.
13:54And if you're going to trade sub one
13:56minute, then make sure that the second
13:59tab is is toggled too. Uh the hourly,
14:04daily for sure, and weekly.
14:07Okay. So we have all the the levels
14:11highlighted here. So that way on every
14:13time frame, no matter what time frame we
14:14drop down, these larger term macro big
14:17picture levels are visible to us.
14:22And then you know obviously today the
14:25likelihood of us taking out the higher
14:27low of August you know it's it's not
14:30likely to happen today. We'll do the
14:32same thing here.
14:36Benefit of this now you can hover over
14:39July like that. Don't go to the end of
14:41it but like right in here when it
14:42highlights and that little thing pops up
14:44at the end showing that it's it's
14:46active. You're highlighting the right
14:47one. Hold down control and then press
14:50your mouse button down and drag away and
14:55it's easier to just do it not explain
14:57it.
14:59Now this bit of business we're going to
15:00do simply this. We're going to change
15:02the July by double tapping it to August
15:06separated.
15:09Done.
15:11Now, we can't do the close yet because
15:13that won't happen until we close today
15:15at 5 or at Yeah. 5:59 p.m. Eastern time.
15:20So, we have
15:24the low
15:26thing here. We'll drag that up. Nope.
15:28Can't do that one. I had two of them
15:30highlighted at the same time.
15:34We'll drag that right there. And then
15:36we'll double tap
15:43monthly low. Okay. So, you're probably
15:47saying, "What? Why didn't I annotate the
15:49open?" It's not that important because
15:52we're going to be looking at the
15:53importance of the new week opening gap
15:56because that if it has a gap, it's going
15:58to answer the the
16:01interest at all about having the monthly
16:03high or
16:05open rather, not not high, the open on
16:08the monthly. It's not it's not that
16:09terribly important because we deal with
16:11new week opening gaps and every four
16:14months or so. I'm sorry, every four
16:15weeks or so, we'll have a a monthly
16:17opening and it's it just it gets baked
16:20in to a new week opening gap eventually.
16:23So, I don't care I don't concern myself
16:24with that price action so much. You can
16:26if you want to be a purist, you can have
16:29the the open right here, which is so
16:31close in proximity. another reason why
16:33I'm not mentioning it. And here where we
16:36opened there for August, I'm not
16:38concerned about it because I don't think
16:39it's a factor.
16:42So, what you're doing is you're
16:43basically getting the high and the low
16:45and where we settled the previous month
16:46on a monthly chart. Very, very simple
16:49stuff. Then, we can drop down to a
16:50weekly chart.
17:03this.
17:05There you go. And it doesn't look like
17:10every one of those levels were toggled
17:12to show all the time frames. So, I got
17:13to go back out.
17:19It's why it's important to take your
17:20time
17:23when you're doing this because you want
17:24them to be
17:29toggle on every time frame so we can see
17:32it.
17:35There's that one.
17:50This one's not
17:57boring, monotonous stuff. But it's just
18:01the stuff that
18:03I'm tracking all the time and I'm
18:04keeping like I don't need to go back and
18:06forth to a monthly chart or weekly chart
18:08when I have these levels in there
18:09because all I got to do is zoom out on
18:11the whatever time frame I'm on
18:14and I have a a workspace
18:17that I keep all these types of levels on
18:19where I can in a glance toggle up from
18:22like see how this one's naked
18:25that that's labeled. Okay. So, I have
18:27these right here.
18:30These are all
18:32little workspaces I go to. This is the
18:34one I usually work off of when I'm
18:36teaching or I'm executing on that view
18:39is here.
18:41Then these are things I use for like new
18:44week opening gaps, new day opening gaps,
18:46and then uh first of every value gaps,
18:50you know, th those types of things go
18:51there. So that way I I have a chart that
18:55I can quickly toggle to. And let me show
18:59you by example. If I go over here, if I
19:02do if I go to the one I usually work on,
19:04watch how the chart changes and
19:05populates with a lot of stuff. See that?
19:10So all I have to do is be able to set up
19:13a workspace or a layout, which is what
19:15we're doing over here. And you can
19:17create a new one by um right there.
19:21create a new layout. And so you would be
19:24go to this, you toggle on that.
19:28Um,
19:37there we go. You have a brand new
19:38workspace. It starts off as a
19:42a template of
19:45your naked price action. And you can lay
19:48out everything you want on there,
19:49whatever you're tracking. And you can do
19:53um whatever whatever frame of reference
19:56that you want to keep a log of but you
19:58don't want to populate your chart with
20:00it too much because there's a lot of
20:01them. Like for instance, you can grade
20:03the opening range gaps and have a
20:06workspace just with that. Okay. I
20:09incorporate that with the uh the one I'm
20:13using actively. So that one's always
20:15showing that type of stuff. I I don't
20:16always keep it on the chart because once
20:18it's there, I can write down the numbers
20:20on my notepad and then I know where I'm
20:22at in reference to that. But it's a
20:24matter of how you
20:27stay organized. And I'm going to be
20:28teaching a lot about that that very
20:30concept this week towards the lectures
20:33every evening at 8:00 p.m. So when we're
20:35done here this morning, um throughout
20:38the day, I'll be working on that for for
20:40Kaden and it'll go up on my channel. But
20:42this you're you're welcome to use this
20:44one on your channel. the uh
20:48go back up to the one I was working on
20:50naked.
20:53Uh
20:55there it is. So see how it goes right
20:58back to
20:59the notes that are important for what I
21:03was just working on. Now if I did this
21:05correctly, if we go down to the daily
21:06chart,
21:08we should see
21:14and we do. So all all those levels are
21:16there.
21:20Okay. So now in the daily chart, what
21:23you're looking for is
21:28first thing order of business is where
21:30are we at in reference to the most
21:34recent range.
21:36Well, we came off of this low here and
21:41we came down from this high. Now, what I
21:43like to do, now things like this just
21:45drives me crazy. Um, when it's like
21:47this, I simply just take it over here
21:49and I drag it and drop it to the highest
21:50high so that way it's visible on the
21:52daily chart. These little overhang
21:54things like this, they're just uh to me,
21:57they drive me nuts. I'm going to leave
21:59that alone there. I'm going to start
22:00messing around with it. It's going to be
22:01too much.
22:03And then there.
22:11All right. I liked everything anchored
22:13to the right place. I'll I'll monkey
22:15with this in a moment.
22:18No, actually I want to do it right now.
22:20It's right there on that candlesticks
22:22close there. Now everything's anchored
22:25as I would like it. If you if you're not
22:27you're like me, you're going to want to
22:29do that same thing. So I'm just showing
22:30you that's how you do it. find out where
22:32like that's the last day of July July
22:3631st and where that candle because it's
22:38not closed candle that closing price
22:40that's the July monthly close. So, we
22:44have this low and this high. Where is
22:47that range in reference to where we're
22:50at for August, the month we're closing
22:53today and in July? We're we're in the
22:58like the middle presently of August
23:02and we're in the upper half of the range
23:05between the high and low July. And I'll
23:08show you like this
23:12bib.
23:13down below. See how that line right
23:15there? That's equilibrium. So, we're in
23:18the upper half of that for July. But for
23:22August,
23:31we're just slightly in a discount. Just
23:34a small small little bit of a discount
23:37because we're below the midpoint between
23:38that high and that low.
23:44We look for where the liquidity would be
23:47in close proximity to where we're at
23:49right now. So market price at the moment
23:50is right here. If you look over here,
23:52you'll see it's fluctuating and moving
23:54around. This candlestick is today's
23:58daily candlestick being,
24:02you know, living its life cycle.
24:05It opened up here,
24:08fluttered a little bit above it. It's
24:10fairly hard to see it. You can see the
24:11high is that. So, we opened at 540 even,
24:16went to 546
24:18and a quarter. We traded as low as 273
24:22half. And right now, at the time of me
24:25clicking on that, it was showing the
24:27price if it were to close at that
24:29moment, 439 even, but the actual live
24:33price is over here. So, what I like to
24:35look for is where's the liquidity, which
24:37we already have it identified here on
24:38the monthly high. So you don't need to
24:40worry about writing on there buy side
24:42liquidity because you already know that
24:43that's the high of the month. So that's
24:46going to have buy side liquidity above
24:48it. So it saves you the time of
24:49annotating extra is just you know at
24:52that high something above it there would
24:55be naturally an expectation to hold an
24:58opinion that there's pending orders
24:59above that in the form of maybe breakout
25:02artists that want to buy above that if
25:03it moves high above it or anyone that
25:06short is using a swing traders model.
25:08They may have a stop loss sitting above
25:10that in the form of a buy stop.
25:15This down here is sitting all by itself
25:18naked. Now it's anchored to this buy
25:21sign bounce which I was covering this
25:23entire month really. The
25:27this low I would have annotate
25:34and now we want to make sure that it
25:36shows on all time frames again.
25:39style.
25:40It's red.
25:43Um,
25:45solid line.
25:49Same color here.
25:58Really
26:01low
26:04sell side liquidity.
26:08Okay. And this one I want
26:12under
26:14but always right justified because it's
26:17going to be important to know if if you
26:20justify it to the left and you're doing
26:23it on a daily chart
26:25when you drop down into lower time
26:27frames that label here will be so far
26:30over here like you wouldn't see it over
26:32here at all. It wouldn't appear. Let me
26:35show you if it's left justified on lower
26:39time frames when I'm operating with like
26:40the one minute chart for executions
26:42whatnot or annotating a uh execution and
26:45I'm recording it and teaching it it's
26:48usually shown underneath that but
26:50because it's a larger time frame you
26:52want to make sure it's labeled to the
26:54left because when you drop down to say
26:56for instance a 15-minut time frame watch
26:58the 946.75
27:01level 28,946.75
27:04the line will be there. The price axis
27:07will highlight it, but you won't know
27:08what it is when we got when we get down
27:10lower. Watch. See,
27:13it's there.
27:15If you scrub down enough, you'll see it.
27:17It's there. But what is it?
27:21And by anchoring it back to
27:27right justified.
27:31There you go. Now, if I go down to a
27:3315-minute time frame,
27:35see how it populates properly.
27:39>> Yes.
27:39>> All right.
27:41So, let's go back out to a daily. So,
27:43that's important. Um, we're still inside
27:48of this buy side of balance sell sign
27:50efficiency. So, that would be noted.
27:57We're in that area right there. And
28:00because we're starting a new month, I
28:01want to kind of just give it a little
28:03bit of room and then take away the um
28:07extend, right? I don't want that because
28:08I can always add that later on on lower
28:10time frames. But I want this to show
28:13a slightly grayed background
28:19like that. And I don't want the middle I
28:22don't want the middle line showing
28:24because it's going to give me one more
28:25line on my charts on a lower time frame
28:27and it causes a lot of confusion for for
28:30students because they'll ask you know
28:31what's that line there? What's that
28:32there for? Why do you have that marked?
28:34And to avoid that there it is. Okay. So
28:38now by grading
28:42that range from low to high
28:46there and now you can get a picture of
28:47my my fibs.
28:53I want this to have
29:00somewhat
29:02dark but not black lines on it. that
29:06way. I use this like light blue and the
29:08one right above it.
29:15And then the last one here.
29:20And then the midpoint level.
29:24I'll use that with black because that
29:26way it stands out. It's it's a strong
29:28contrast among all of these here.
29:32Or it should be. And it doesn't look
29:34like it's being lit.
29:36Is it faded out?
29:40Let's do this.
29:51Got too close with the darks, but I'll
29:52leave it the way it is. So now I have
29:54this greeted out. And since we're part
29:57of this large inefficiency where it
29:59could go up and use it as the high and
30:02and trade lower or stay in the upper
30:05half like we're seeing it do presently
30:07in the last couple days. It came down
30:09but it still hasn't closed below the
30:11midpoint.
30:13So it's it's kind of like we're waiting
30:15and seeing. We have this inefficiency up
30:19here
30:20which is opposing
30:22the sell side down here. What do we do?
30:24We just trade up inside of this
30:26suspension block.
30:32And same bit of business, I'll leave it
30:33just about that far.
30:40Okay. And then now for something like
30:43this,
30:44I'm shading
30:49that and making sure that
30:52it's visible on the hourly. is visible
30:55on
30:58the minute, the days, and I got to
31:01double check that.
31:08So, that works there. And
31:18we don't need the seconds.
31:23I need to make sure that the fibs
31:27show up on everything. And they are.
31:29They're good.
31:32All right. So, we have this range here.
31:33And now, when it's like a premium array,
31:38how I have it shaded in red because it's
31:40above market price. When I'm grading
31:43this now, I want the lines to be
31:45slightly
31:46red in hue. So, there's a volume
31:48imbalance here between the two bodies,
31:49not connecting. So I'm anchoring there
31:52down to the low of the volume of balance
31:53between these two bodies not touching.
31:56So that cibby has a volume of bounce at
31:58the high and low which makes it a
31:59suspension block. Here we're going to do
32:03the lines.
32:05Make sure everything is germanine.
32:11Boom.
32:13So now this bit of business we're not
32:16going to use the the high and the low.
32:18That's what this would imitate. Like
32:19what? Watch right here.
32:22See how the low it pops up and then the
32:25one is the high. I don't care about
32:28that. It's just one more line I got to
32:29worry about babysitting or answer
32:31questions about. So I don't toggle that.
32:34But over here we have
32:38view girl over here. Yeah, I can. The um
32:42the lines now I want them to have a
32:46little bit of a red hue. So, we'll do
32:48this one here.
32:53There.
33:09This one bold red.
33:12Okay. And then
33:14beef it up a little bit. So it's the not
33:17the thickest one, but the next one to
33:19it. You want to have it like that. Why?
33:21Because it's anchored to a daily time
33:23frame. And if we were looking at
33:25something like this for a weekly chart,
33:27we would do it same thing. Not the not
33:29the boldest, but right before it. So
33:32that way when we're watching and we're
33:33navigating on lower time frames, it kind
33:36of like stands out. It's very prominent.
33:38It shows that, hey, look, there's
33:39something very significant about this
33:41level. Don't just you get lost in the
33:44you the minutiae of price action. It's
33:46it's utilizing a very specific range and
33:49it's this sell sign of balance buy sign
33:51efficiency which is a suspension block.
33:53So now we have that anchored. So now
33:55we're in the lower half of this
33:59cibby suspension block and we're at the
34:02high end of this buy balance sign
34:05efficiency here and we're in the middle
34:08of August range starting a new
34:12month and new week ending a the month of
34:16August.
34:18So now when we drop down to let's say
34:20we'll drop into a 60-minute chart. So
34:22it's an hourly chart.
34:35We have several reference points right
34:37away that we can utilize for setting
34:40like taking trade setups. So, so far
34:44we've had a run above this high here.
34:46So, we have relative equal highs that
34:48was bumped right here. So, they did that
34:51last Friday at 10 a.m. and we broke
34:54down. We overshot this
34:57bit of business and inefficiency.
35:00We have a significant low
35:03on the daily right here
35:06and
35:10all through here. Notice that we failed
35:12to get to the halfway point in that
35:15daily buy of balance sell sign
35:16efficiency. Now, if you want if you if
35:20you want to be so inclined to kind of
35:22like annotate and keep track and and I
35:24think you should do it when you're when
35:26you're first starting out when you're
35:28using these things, you want to add what
35:31the context is. So, that's a daily
35:33civvy.
35:44Okay. So that way it kind of helps keep
35:47things framed in in proper perspective.
35:50And the same thing here
36:04doesn't look like
36:08it doesn't look like that gradient
36:10levels were anchored just to show it on
36:12the hourly chart.
36:17long intervals
36:22back down to a one hour
36:28there. Okay. Make sure I save it so that
36:31way those settings are there.
36:33All right. So, we're in the upper half
36:35of the daily buy center balance sell
36:36sign efficiency. We have these always
36:39anchored to the right to extend always
36:41to the right. Otherwise, you'll lose
36:43them as this new chart data starts
36:46populating.
36:48And now we can drop down to a 15-minute
36:49time frame. Just making sure everything
36:52shows up as it should. It does.
36:56And then a five minute
36:59and it does. One minute and it does.
37:05Right. So, we had a little bit of uh a
37:09flurry here at 9 minutes after 8
37:13by side was taken here.
37:19So, think about what we've looked at so
37:23far and where we're at in terms of price
37:25action.
37:27We're below that cibby on the daily.
37:36The label should be
37:40open up and it doesn't. I'm not sure why
37:42it's not there.
37:49Look where that's smooth right here.
37:53And we have relative equal highs here.
37:55So we have significant buy side and sell
37:57side.
38:00So we have this here.
38:16Uh
38:20here I want to be on because we're on
38:22lower time frames. I want to be right
38:24above
38:26where it's anchored to.
38:31not right justified because I can scroll
38:34back by compression with this like this
38:37I can I can find it very easy by doing
38:39that I'm just going down here on the
38:42time axis clicking on anywhere and then
38:44scrubbing to the right it compresses the
38:47the amount of data and scrubbing to the
38:49left it widens it and shows more and
38:52then we can take this hold down control
38:54and drag and drop that Okay.
39:07On the lowest low. Double click on it.
39:12Change buy to sell
39:17and bottom.
39:20Deep red
39:22style.
39:24Deep red. All
39:27right. So, have that's a potential draw.
39:31And notice where it's at. This little
39:34line right here, that part of that daily
39:37buy sign efficiency
39:41where it used it here,
39:46traded sideways, then used this level
39:48here. See how it's using that daily gray
39:51box that I shaded out as a buy sign
39:53bounce sell sign efficiency and it
39:55relies up to that level.
39:57It uses the upper octant. An octant is
40:01halfway between the uppermost percentile
40:04or the high of the range you're
40:05measuring.
40:08And between the first quadrant, so
40:10halfway between that is an octant.
40:18So we have sell side here.
40:22Look how we we fell at it after taking
40:24that minor buy side here. So you have
40:26minor buy side. Now you can do this
40:30one of two ways. When you have like very
40:32very small levels of liquidity like this
40:35one here, I like to just do short little
40:38trend lines of it.
40:56or you get too zoomed in is if you tap
40:58this, it'll bring your chart back to
41:00center and allows you to do quick
41:01adjustment and center yourself
41:05by side blue. I keep with that so that
41:08way when people are watching me even if
41:09they don't understand my language
41:12uh they know what I'm highlighting
41:13because it's consistently shown the same
41:15way.
41:21Top
41:23left.
41:25That's too
41:32right. So now this big wick right here,
41:36we we basically have done like half of
41:39every annotation that you would have to
41:41worry about. The only other thing of
41:42interest would be going into regular
41:44trading hours
41:46and looking for gaps where we haven't
41:48opened up for today. Uh today we want to
41:51zoom in
41:54right in here
41:56and that closing price you want to put a
41:58line on.
42:00Drop that there. You can use like a odd
42:03ball color. This purple one.
42:09Regular trading hours, opening range,
42:11gap, settlement. Now, that settlement
42:15time is
42:19basically the uh the part of this
42:22annotation that will change
42:26as soon as we get to 9:30 opening.
42:28meaning that this will be either the
42:30regular trading hours, opening range
42:31gap. That's what this means. Regular
42:33trading hours, opening range gap,
42:36settlement because we have some time
42:38before it opens is 8 basically 8:30 now
42:41Eastern. And always have your time at
42:44New York
42:46and this is toggled to the right
42:48justified middle.
42:53And then at 9:30, if we're open and
42:55we're above this price, we change this
42:58annotation to RTH og low.
43:04If we open below it, that's high. So,
43:08the word settlement is going to change
43:09either to low or high in reference to at
43:129:30's opening price. If it's lower,
43:14that makes it the high. If it opens at
43:169:30, higher, then it's the low. Does
43:19that make sense?
43:21>> Yes.
43:25All right. So, let's go back and
43:27recenter everything.
43:37Any other previous trading hour gap
43:42that one there, you could include that.
43:45I don't want to add too many things. You
43:47You want to create a a template or
43:50workspace like up here. Let me save
43:51this. You want to create one which just
43:54has like uh new
43:57new regular trading hour opening range
43:59gaps and then keep a tally of them. Your
44:01chart has nothing but just simply them
44:03on them. And that way you can quickly
44:05toggle to that chart and it'll show you
44:08much like how we have this here. If I
44:10want to go back and look at my other
44:11working chart and have all these other
44:12things, I can just quickly just breeze
44:14to it like that. So I already know I'm
44:15right inside of Friday, August 21st's
44:18first presented fair value gap. That's
44:20where we're at right here. And we have
44:22sell side resting right here. And we
44:24have cell sell side resting here. And
44:26it's also part of an old inefficiency
44:27that I used last week in the data. So
44:30that's a draw down to that simply
44:33because there's a liquidity pool here.
44:35It's an inefficiency down here. And
44:38now I can go over
44:41back into the other workspace and
44:43everything is so easy to navigate.
44:46You're not having so many things on your
44:48chart. you're going to a chart or a
44:50workspace to get information that you
44:53don't want to be using too much of on
44:56one chart because it'll clutter if I put
44:58everything that I use on one one chart.
45:01It'll be a mess like it'll be to it'll
45:04be overload. Okay, but the way you
45:07manage is by it's it's simply just using
45:09the workspaces up here or what they call
45:12a layout. Okay,
45:14now go back into electronic trading
45:16hours.
45:19This is a minor cell side.
45:32Okay. And now we'll just sit here and
45:33we'll watch how this behaves
45:36here.
45:41>> Not complex, not hard. Uh we we've
45:44already seen a disruption to the upside
45:46here.
45:47Uh we already seen price used the high
45:49of that buy side of balance sell sign
45:51efficiency on the daily chart. That's
45:52that gray shaded area. Okay. Um just for
45:59clarity
46:01that's where we're looking at now. We're
46:02going to do NQU2026
46:06and then we'll do daily.
46:10So, what we're looking at is the the
46:12high of that gray box right here that
46:14was shaded from this candlesticks low
46:17and this volume and balance low. All of
46:20this and all those vertical I'm sorry,
46:22horizontal lines. That's this right
46:24here. Look at 0.125
46:27which is 29,451.
46:31That's this level here.
46:34That's the first line you would come to
46:35if you were grading this in eight equal
46:38parts. It's the first one from the
46:41highest one.
46:43And the halfway mark is 29,211.25.
46:58That's down here. That's halfway. So, we
47:03have
47:05a view of price action from a macro
47:08perspective where we're at in the higher
47:10time frames all visible
47:13in this chart. We don't need to go back
47:16and forth in here and see all this stuff
47:18here. Now, you can go even more in
47:23detail by including this section of
47:28price action by having it like this. You
47:29would do
47:31It's going to cause a whole lot more
47:35things to populate on your chart and
47:37more ranges to get lost in.
47:40But this is a buy side of balance, sell
47:42side efficiency
47:47in in the form of a volume of balance, a
47:50very large volume of balance. So if you
47:52split that in half and add that little
47:55middle line, you can see we're real
47:57close to that.
47:59So, if we close below this, then it's
48:02probably going to want to explore the
48:03whole lower half of this little section
48:07of price action where there's simply no
48:08bodies there. We're starting to now put
48:11bodies in. We had one come down here,
48:13but it didn't leave the body down there.
48:15So, we're watching and see if there's
48:16any interest to get in there. I'm not
48:18going to leave that on there because I
48:19simply going to trust the lines that I
48:21have already here.
48:24And then we'll go back up to maximizing
48:27this one.
48:43H now this big wick
48:46whenever I see those like I want to see
48:48what does it do with it now that it's
48:50there. So if we grade it out
48:55and divide it up into halves
48:58like this
49:01is it willing to leave bodies above it
49:03after it's created it where we're at
49:06here. We already had one. We're in this
49:07one here. So, it can still
49:12find its way lower if it wants to go
49:14lower. It's just I want to keep a
49:16constant reference. So, whenever I see
49:17these big prominent wicks, you always
49:20want to measure what it does around its
49:22halfway point or consequent
49:23encouragement.
49:44going up here and proving it's not
49:46market replay. So, I'm just going to
49:47keep doing it because I don't want to
49:49fall out of practice with it in case I
49:52get lazy and not uh
49:58one second.
50:02You see how the buy side was taken
50:05right there.
50:09Now, prior to this high and this high
50:11and this high being taken, this little
50:14area right in here,
50:17I'm looking at that part right there,
50:19more specifically inside of this volume
50:21of balance.
50:33If it closes above
50:42it close above that,
50:45this makes it a little bit harder to
50:46read.
50:48We took a a low out there, but it's very
50:51shallow.
50:54This was uh in efficiency right before
50:58that buy side was taken there.
51:02So right now if we were to open for
51:04regular trading hours,
51:08say that the candlestick we're in right
51:10now was the opening,
51:12would this be a gap down or a gap
51:14higher? Or in other words, is it a
51:16discount gap where we open lower or is
51:19it a premium gap where we open higher?
51:22If this was the opening price right
51:24here,
51:28you know by looking at this right here,
51:30this is the regular trading hours,
51:31opening range settlement. So we stopped
51:34trading regular trading hours Friday
51:38at this time. So if we opened here, that
51:41would be lower, right? So that would be
51:43a discount regular trading hours opening
51:45range gap lower. So you would
51:50annotate it like this.
51:52And then you would label it RT ho RG
51:55low and then change that to high. It's
51:58not imperative that you do it right away
52:00because you want to be watching price
52:01action and it's not technically the open
52:04because it's only 839 right now.
52:10Everything that we have, we've already
52:11prepared everything now. So, we want to
52:13see if it can get down into this next
52:17level on that daily buy side of balance
52:19sell sign efficiency that I shaded out
52:20in gray.
52:26This one,
52:29this one right here, we're inside of
52:31this range. So, it's it's trying to
52:33explore key levels and you can't get any
52:36more you key than inside this
52:38inefficiency on the daily chart. And
52:51we have a nice little lower here.
52:53So this will be labeled sellside sign
52:59minor cellside liquidity
53:13bread
53:15and mole
53:17bottom right. Right. So now we can go
53:20back in and recenter the chart. Scrub it
53:24over here.
53:36So the damage was done here. It was made
53:39jagged. That stop
53:42rate right there. Now we want to see
53:43acceleration below this low. We just we
53:46just got below it now, but we don't want
53:47to see any kind of come back up in here.
53:49We want to see it get real real heavy
53:51and draw down into the next level in
53:55that daily buy side and balance sell
53:56side efficiency the gray shaded area on
53:57the daily chart. This is the upper oct
53:59of it. The upper the upper level when
54:03you start dividing it into equal eights
54:05which is an octin. Then we'd have this
54:08level. So we want to see does it have
54:10the interest to get down to that level
54:12in and of itself by itself purely on key
54:15levels only. So, we're going to watch
54:18and see does it gravitate towards that
54:19level. And if it does gravitate to that
54:22towards that level and doesn't show any
54:24kind of reversal,
54:26the next order of business would be that
54:27minor sellside. So, what I'm fleshing
54:29out is how to arrive at draw on
54:31liquidity. Step by step by step,
54:34fleshing out the chart. No entries
54:36required. This is the first part of what
54:39you're supposed to learn under my
54:40toutelage. knowing what you're looking
54:42for, why it should be there, what levels
54:45are important, what what would change
54:47it. Well, if it goes above this and
54:50closes above it, that would change the
54:52whole interest in trying to get down to
54:53here. But before it gets to here, this
54:56is a reasonable level to watch to see if
54:57there's any strength to the sell-off.
55:00You want to see it reach here, but also
55:02show a continued interest in moving
55:04lower by the way the candlesticks book.
55:08So in here we have this drop down.
55:14That's a sell side of bounce buy side of
55:15efficiency. And it trades right back up
55:17into it here. And they accumulate more
55:21shorts and it takes out that low. So
55:24every time it creates a new low, I like
55:26to do things like this. And you see it
55:28many times in my executions. This is the
55:30low and I'm watching it. And the color
55:35isn't so significant, but for now, I
55:36just want to keep it like this.
55:42And I want to I want to study how is it
55:44behaving once it booked a lower low. Is
55:46it showing a lack of interest in
55:48continuation? And if it's going to
55:51retrace a little bit, what would it
55:52retrace into? Well, we have this wick
55:54right here.
55:56So, I want to grade that. I want to see
55:58if any retracement occurs, I want to see
56:00the body stay below that. So in this
56:04case, I would have this shown as red
56:08and I want to observe what price does in
56:09here.
56:17Watch it like this.
56:41got any questions on anything I said so
56:43far?
57:06force setups can come consistently and
57:10setups that are
57:12reliable in price action. You you have
57:15to know why price should behave a
57:18specific way. Where should it be going?
57:21Why should it even go that direction?
57:24And the more things you can use
57:27that's anchored to the daily chart, the
57:29more probable. It doesn't mean
57:32guaranteed. It doesn't mean never have a
57:34losing trade. It means never um
57:38feeling confused is what it means. It
57:40means knowing that you know what you're
57:41looking for. And that perspective may be
57:46inaccurate because of your skill set or
57:49just you did it wrong. And that's a
57:51transactional operating error. And you
57:53you you are the operator. You made the
57:55mistake. And you got to own that.
58:00I'm watching this wick right here. The
58:02same way I'm watching this. I'm not
58:04going to draw a line out, but I'm
58:05watching that same thing there about
58:06halfway about right there
58:10with the body's close above that. Then
58:12we have to really focus on this.
58:15It can create this like this and become
58:16a wick and continue going lower or it
58:19can come all the way back up in here and
58:20close above it. And then it requires us
58:22much more focus.
58:24If you would have took a short up here
58:26on this volume imbalance
58:37there. I'm thinking in terms of okay, if
58:40I would have had a short from this level
58:43or added more into this CBI right in
58:47here, my stop would have to be up in
58:49here. and I'm watching how much pain
58:54would I be feeling based on what I'm
58:56seeing in price action. So far, this is
58:57reasonable retracement. It doesn't mean
58:59anything significant at all,
59:03but it would change if we get a close
59:05above this wick here. So, wicks are
59:08wonderful little mile markers for
59:11measuring continuation and selling and
59:13buying. So, when you're short, you want
59:17to see your shorts stay below
59:20the midpoint. And the the premium
59:23sensitivity is illustrated
59:27like this.
59:32And in the upper half, don't don't go
59:34there. It can it can spike into it. It's
59:36preferably uh better to see it not trade
59:39at all in the upper half of the wick.
59:41And you can see just the early signs of
59:42it. Doesn't mean it's going to do it
59:43yet, but just early signs of it.
59:45Wonderful. Because even if you split
59:47this portion in half, the body can't
59:48even touch that. it it traded to there.
59:51So, what I like to see is when it does
59:53things like this, I want to see it start
59:54to wilt and just roll over.
59:58Or if it comes back up above and closes
1:00:00above us, then we have to manage more
1:00:03information relative to this range
1:00:48It's a premium wick even though it's the
1:00:50lower half of this or lower portion of
1:00:52this individual candlestick. But when
1:00:54price is down here, it's higher than
1:00:56that. So that makes it a premium array.
1:00:58And we're looking at the the the
1:01:01specifics of I'm going to move that over
1:01:03so that way we can see the distinction
1:01:04of what I'm actually measuring there.
1:01:14The more time we have and the more
1:01:16candles we have moving away from the
1:01:19area where you would have hypo
1:01:20hypothetically taken an entry, the more
1:01:23candles it shows moving away from that
1:01:26and the distance it gains moving away
1:01:27from that. It builds a onside narrative.
1:01:31That means while you're watching price
1:01:33action, it's encouragement versus fear
1:01:36of when it starts running towards it.
1:01:39Then it becomes a matter of defensive.
1:01:41Then you have to think, okay, do I take
1:01:43some of the trade off? Do I close the
1:01:45trade and cancel the whole entire
1:01:47transaction.
1:01:49But those are things for for the stage
1:01:51of knowing when you're getting into
1:01:52something. Right now, I'm just teaching
1:01:54how to flesh out the chart and then how
1:01:56to map out draw and liquidity and what
1:01:58we're looking for. And technically, I
1:02:01guess right now the the video would be
1:02:03best
1:02:06closed at this point, but I'm going to
1:02:08continue. I'm going to see if it can uh
1:02:10break down and go into that next level
1:02:12on uh the lower quadrant here at 29,371
1:02:16Then
1:02:44little wonky for market structure, But
1:02:46it's it's still got signatures in there
1:02:49that looks like I'm watching this little
1:02:50volume imbalance
1:02:54right there.
1:03:09We're inside the macro, which is the
1:03:11last 10 minutes of the hour going to the
1:03:15first 10 minutes of the new hour.
1:03:25That would look like This
1:04:15What we're looking for is the decisive
1:04:21move of a run for either going to
1:04:24inefficiency
1:04:26or liquidity. It's kind of like a uh
1:04:31a micro start of a new race. Let's say
1:04:34it like that. It's like a new energy
1:04:36entering into whatever should be
1:04:39unfolding in price action. It should
1:04:41start showing itself in in between these
1:04:44two vertical lines.
1:05:09macro doesn't give you directional
1:05:12um intel at all. It just gives you a
1:05:15time at which price should start
1:05:16spooling. It means you want to see it
1:05:19start doing whatever you expected with
1:05:21your other analysis concepts which we
1:05:23fleshed out here already. Uh, we want to
1:05:25see it now start to
1:05:29animate, start moving and and and show
1:05:32signs that what you're looking for and
1:05:34are expecting is potentially unfolding.
1:06:15I'm going to step away for a second. I
1:06:16got to grab a bottle of water.
1:07:22All
1:07:36right. So, you can see how we're
1:07:38starting to animate now towards that
1:07:41lower quadrant at 29,371.
1:07:51Your responses are so robotic. They're
1:07:53be like, "Okay, yeah, he's not really
1:07:55there. He's using a sound machine."
1:07:59Look at that. Look at that.
1:08:04So again, what we want to see is does it
1:08:05get down to that 29,000
1:08:08371? Now, you got to look at it through
1:08:10the lens of a new student, okay? someone
1:08:14they're not they're not used to seeing
1:08:15these types of things behave
1:08:17um because they think price is
1:08:19completely random. It's buying and
1:08:20selling pressure because that's what
1:08:21they've been probably hearing other
1:08:22people talk about reading in books and
1:08:25such.
1:08:26Um
1:08:29up to this moment right here you they're
1:08:31probably very very excited like they're
1:08:33they're seeing things that are
1:08:36warranting further investigation and and
1:08:38pursuing it. But if you were from a
1:08:40trade perspective, you would be taking a
1:08:42partial here. Why? Because you have a
1:08:45low here and a draw level down here
1:08:49because it's a lower quadrant. So
1:08:52between that low and that line, it's
1:08:56based on a higher time frame range that
1:08:58we graded out that daily buy sell side
1:09:00efficiency. Do you know what I'm
1:09:01referring to?
1:09:05>> All right. between that and this level
1:09:09here. You can grade that and you get
1:09:11what that calls an event horizon
1:09:15right
1:09:19there.
1:09:21And that's where we're at right here. So
1:09:23that would be a partial for me if I was
1:09:24short from up here.
1:09:27Once we took out the low there, I want
1:09:29to see now we're creating a new low
1:09:31which is what we created. Whoops. I
1:09:33don't want to do that.
1:09:38That was a new low forming right there.
1:09:44And it's occurring during a macro time.
1:09:47And to prevent the idea of missing the
1:09:52opportunity to pay yourself because if
1:09:55it moves from here down to here,
1:09:59that's great. You can take a partial
1:10:00there, too. But because we've been
1:10:02moving continuously lower for
1:10:09about a half an hour or so and no real
1:10:12significant run on liquidity on the on
1:10:15the short term on the on the buy side.
1:10:18Halfway is a nice little area for brand
1:10:21new traders. And I try to teach this by
1:10:24execution to just pay that transaction
1:10:28something. Okay. as as as a demo trader
1:10:31because I don't teach people how to
1:10:32trade with real money because I'm not
1:10:33licensed to do so. Um, I teach them to
1:10:36engage with their paper trade or if
1:10:39they're tape reading, you want to
1:10:40highlight that hypothetically when it
1:10:42hits this area down here. In your mind,
1:10:44you should be thinking this would be a
1:10:46good area to take something off. So, for
1:10:48instance, say you had three contracts,
1:10:50say three micros. One micro could come
1:10:52off as soon as we hit that price level
1:10:54right there. And then when you see this
1:10:56little bit of a retracement in here, now
1:10:58we're watching this wick the same way we
1:11:00did over here. We're doing the same
1:11:03thing right there. As long as the bodies
1:11:05are not closing above that.
1:11:08Now, you can quickly see how this can
1:11:10become a very busy chart by doing these
1:11:13things. But just know what you're
1:11:16looking for. You don't have to in the
1:11:18beginning while you're tape reading it's
1:11:19okay to draw these things out because
1:11:21you want to be able to log them in your
1:11:23journal and show where these little mile
1:11:25markers were and how everything kept
1:11:27showing it was likely to continue or
1:11:29warning signs when it does close above
1:11:31things like that. It means it's now a
1:11:33concern doesn't mean bail and completely
1:11:36close the trade. But as a new trader or
1:11:40a new student rather, when you see these
1:11:42moments where if it starts doing the
1:11:44things we say it shouldn't do, now this
1:11:46line is in the wrong spot because it's a
1:11:48new lower low
1:11:51right there.
1:11:53If it closes above that, now we have to
1:11:55concern oursel with this because it
1:11:57should never now once it's done what
1:11:58it's done here, it should not close
1:12:00above this midpoint here.
1:12:03So from a trader's perspective, you've
1:12:06taken a partial here. You could roll
1:12:08your stop down to just above here.
1:12:12If it stops you out, who cares? Because
1:12:14you you you funded that transaction by a
1:12:16partial here. And he removes the need to
1:12:18be right about going to this target or
1:12:22the draw on liquidity with sellside down
1:12:25there.
1:12:30Managing your expectations and your
1:12:32emotions and the psychology of holding
1:12:34on to a trade is directly linked to
1:12:38reward.
1:12:40We're motivated by reward. We're fearful
1:12:43of consequence. Consequence is what if I
1:12:46did it wrong? What if I held on to it
1:12:48too long? What if I didn't take a profit
1:12:50when I should have? Um,
1:12:53by the way I teach
1:12:57I teach you how not to be dependent on
1:12:59being right. Right's just a d, you know,
1:13:01it's
1:13:03it's a default
1:13:06mechanism to doing what I'm teaching.
1:13:10You're not aiming to be right. You're
1:13:12you're you're aiming to be consistently
1:13:13following a model or approach. and the
1:13:17statistical probabilities of what I
1:13:18teach. You measure that in your own
1:13:20hands to such a degree where
1:13:24you're either convinced that you're
1:13:26seeing the evidence that these things
1:13:27behave in the manner in which I teach
1:13:29them or they quickly fall apart and then
1:13:32you don't have to spend any more time
1:13:33with me. But as you go forward and you
1:13:37move throughout the the lectures of
1:13:39starting reasonably and humbly like
1:13:41we're doing today, this is a very simple
1:13:43little beginning point. you know, you
1:13:45start like this. You don't do um crazy
1:13:49stuff and try to go out there and try to
1:13:50demo trade. You don't try to push the
1:13:52envelope of uh your experience
1:13:56by trying to take funded account
1:13:58challenges.
1:14:00That's all gambling. And you you're
1:14:02going to weigh so much on the
1:14:07the the results of doing that when you
1:14:10don't have enough experience to justify
1:14:13any measurement of
1:14:17performance. Like it's it's
1:14:18unreasonable, unrealistic to to try to
1:14:21grade your expectation. You know, your
1:14:23first day of school, you know, the
1:14:24teacher not going to say, "Okay, I'm
1:14:25going to give you a final exam for uh
1:14:27what you've should have learned today
1:14:29already. You've been here for five
1:14:30minutes. What'd you learn? See what it
1:14:32just did there? It took out that low and
1:14:35it quickly came back above that wick.
1:14:37Now, that's a reason for concern.
1:14:40We want to see does does this maintain
1:14:43and come back up and clear this on a
1:14:45closing basis or is it just small little
1:14:48run across these little highs here
1:14:50inside this cibby?
1:14:55Those are things that are scary for for
1:14:57brand new uh students and watching
1:14:59price. They it causes them concern real
1:15:02fast flashes of little flaring price
1:15:04action.
1:15:15It's a nice 60 handle drop from over
1:15:18here. And if you would have used
1:15:19anything in here about 55 handles or so,
1:15:27I'm going to remove this event horizon
1:15:29line. It's too many things going on. Now
1:15:31we have a lower low.
1:15:34So that's the low of the Okay.
1:16:05Now, if this has legs,
1:16:07okay, say it wants to go above here and
1:16:10want to return back into this civi,
1:16:14you can measure that by looking at this
1:16:23right here. Does price support
1:16:27that area as an inversion fair value
1:16:29gap?
1:16:31So when I'm watching price action, I do
1:16:33have PDA rays I'm watching that I want
1:16:35to see continuously support the idea of
1:16:38the the transaction I'm in or watching.
1:16:41But now if it's bullish, this should go
1:16:44above it, come back down in, respect the
1:16:46upper half, not the lower half, and go
1:16:47higher. So far, it's showing a
1:16:50willingness to act as a bearish fair
1:16:52value gap, which is what I want to see
1:16:54if I'm aiming for this
1:16:59and that sellside down here.
1:17:03But you want to have a way of measuring
1:17:06the continuity of the the run you're
1:17:08you're observing. And if it starts
1:17:10showing a willingness to support the
1:17:12idea that this is an inversion fair
1:17:13value gap, then we probably created an
1:17:15intermediate turn low, meaning that we
1:17:18can trade higher and hypothetical
1:17:21position that would be here after
1:17:22getting one partial taken off maybe a
1:17:25second one here depends upon how many
1:17:27contracts you would have the stop loss
1:17:30would be just above here. So
1:17:32hypothetical we'll say if it trades to
1:17:35well let's just do it let's add a alert
1:17:38right there.
1:17:42Okay. So if price goes up there, it
1:17:44would be a hypothetical stopout on a
1:17:47position that's already seen profits
1:17:49taken here and maybe one once we look
1:17:52pardon me if you didn't take it there,
1:17:54you would have had an opportunity to
1:17:55take a partial right below that low
1:17:58around the midpoint between that low and
1:18:00there we measured earlier as event
1:18:03horizon.
1:18:06So now I'd like to see it use the low of
1:18:08that and now not put a body in the upper
1:18:10half because it showed a willingness to
1:18:12go up into this but it didn't go outside
1:18:14of it and then treat it as like a
1:18:15discount array yet. It can still do it
1:18:18but now what I'm doing is I'm watching
1:18:20price and see if it can use the lower
1:18:21half of that and then work lower. If it
1:18:24starts to sell off then it will have
1:18:26probably no issues getting down here.
1:18:28But if it trades back above it and
1:18:30closes above it, then we would watch the
1:18:32upper half of this.
1:19:00So, it's touched consequent encroachment
1:19:02of that gap. Now, why why did I pick
1:19:04that gap? Why did I touch this one down
1:19:06here? Because it's laying on top of a a
1:19:09wick consequent encroachment. So, it's
1:19:11two PD rays nested together. So, two PD
1:19:13arrays in the same proximity is going to
1:19:16give you a whole lot of information.
1:19:17Immediate intel, immediate feedback
1:19:19measuring the strength or continuity of
1:19:21a price run. find that and like off.
1:19:28So, it's a little blocky in here. Um,
1:19:30usually when it gets like that, it'll
1:19:32snap up against the run that's already
1:19:34been going.
1:19:37So, that would be a it could be a minor
1:19:39buyside run here. If it wasn't to do
1:19:42that, but not take out where this high
1:19:45is and just above it where the
1:19:46hypothetical stop loss would be, uh,
1:19:48that would still be okay. It would be
1:19:49healthy. We could see it wick up in
1:19:51there and drop down.
1:19:53The more time it stays like this, the
1:19:56less likely that it's going to go down
1:19:58to our sell side. So, we want to see it
1:20:00support a continuously uh heavier price.
1:20:13And by not having a trade on um it helps
1:20:16the student
1:20:18have far less concern over the outcome
1:20:22and allow them to focus on what is price
1:20:25actually telling you like what is it
1:20:27what intel is it giving you like what
1:20:28pieces of information so far you know
1:20:31it's showing the lower half being worked
1:20:37and it hasn't really aggressively popped
1:20:39through it can it can still do it where
1:20:41it's at that changes if we get back
1:20:44below this low. If we get back below
1:20:45this low, then I would expect a lot of
1:20:48big down close candles to reach down to
1:20:51that sell side
1:20:58because it hasn't yet treated this as an
1:20:59inversion fair value gap because
1:21:01originally because it's sellside bounce
1:21:02by side efficiency. It's a down close
1:21:04candle. We went up into it. If we went
1:21:07above it and traded back down and
1:21:08treated as a discount array and then
1:21:11started running from there, that means
1:21:12that this low is now intermediate term
1:21:14low and it could be the low of the
1:21:16session, it could be the low of the day,
1:21:18it could be, you know, the low of the
1:21:19week, those types of things. But here,
1:21:24it showed us the it went up into it. It
1:21:27wicked outside of it, but the bodies
1:21:29were not able to close at the high, but
1:21:30it was able to close above it. So, it's
1:21:33concerned until we take out that low. If
1:21:35we take out that low, that concern is
1:21:38evaded. It It doesn't hold all that much
1:21:40significance anymore. We're closing in
1:21:43on the last couple minutes of the macro
1:21:45time. So, I would really like to see it
1:21:47kind of like animate to the downside.
1:22:35remember how much time we spent in this
1:22:36area.
1:22:38The more time you spend in that, less
1:22:40likely less likely it is to continue
1:22:42going lower because we're in a time
1:22:46which is the macro. It should be proving
1:22:49to you that it is wanting to go in the
1:22:52direction you thought it was going to
1:22:53go. If it consolidates like it's doing
1:22:55here, that's problematic. So, when we
1:22:58have that occur immediately after macro
1:23:02time, which is the 10-minute mark here
1:23:04after 9:00 a.m., we would want to see it
1:23:07obviously behave in a way where it's it
1:23:10can use this little consolidation and
1:23:12then it like it be like a delay. I don't
1:23:15like to see that. But in recent years,
1:23:18because of all the manipulation and all
1:23:20the fake data and all the the war's
1:23:23over, we're going to war, you know,
1:23:25we're going to do we're going to hit you
1:23:26historically harder than we ever had
1:23:28done before, those types of things. Um,
1:23:30it creates these little
1:23:33anomalies where volatility can spike up.
1:23:38So, it kind of it kind of distorts the
1:23:40the the precision elements of price
1:23:43action that
1:23:45generally is available, but right now
1:23:47we're having to be met with a lot of
1:23:49crap. All right, so we're outside of it
1:23:51now. Did we close above it?
1:24:03So far, all it did was took those highs
1:24:05out and the body stayed inside this All
1:24:19right. So, we're outside of the macro
1:24:20time. We basically consolidated. We make
1:24:23a we made a lower low two times. We took
1:24:26the low there and this low was taken
1:24:28there. So, hypothetically booked
1:24:3255 to 60 handles from that
1:24:36volume imbalance. And that was the
1:24:37premise that we were watching price
1:24:39action There.
1:26:15Okay. So, that little high right there,
1:26:17that was taken there.
1:26:22I'm with a stop loss at that 29,412.
1:26:25That would I would lock in about 30
1:26:26handles from the hypothetical entry up
1:26:29there for tape reading purposes. So, if
1:26:32it were to go there, that's fine. It is
1:26:34what it is. two opportunities to to fund
1:26:37the position. We're down here and you're
1:26:40getting knocked out with more. So,
1:26:43you're you're getting taken out and paid
1:26:45for your time hypothetically.
1:26:52Remember, we have a previous day
1:26:55settlement on regular trading hours up
1:26:57here. So, by nature, the closer we get
1:26:59to 9:30, and we're about 15 minutes, 16
1:27:02minutes away from that, any price action
1:27:06post 9:30,
1:27:09we'll be looking for a run towards this
1:27:10level.
1:27:15So right away when the way I teach
1:27:18partials and event horizon, knowing what
1:27:21to look for, but also saying I I know
1:27:24I'd like to see it get down to this
1:27:26level and and get further along going
1:27:29lower, but how can I make sure I take
1:27:32something away and reward myself for
1:27:35participation? That's where I rung in
1:27:37that.
1:27:39There's a lot of people out there that
1:27:40say that, you know, taking partials is
1:27:42stupid.
1:27:43Look at that. Is that stupid now?
1:27:48>> Yeah. So, I mean, we're not doing this
1:27:51to be smart. We're not trying to do this
1:27:54to impress our parents. We're not trying
1:27:55to do this to impress our girlfriend or
1:27:57boyfriend or significant other,
1:27:59co-workers. We're in here trying to
1:28:01build a skill set that eventually, if if
1:28:03done correctly, it could yield a
1:28:06secondary income and that could
1:28:10obviously flourish into something even
1:28:12greater. you in the right hands and in
1:28:14and the right opportunities. But it it's
1:28:16not promised to everybody
1:28:19or anyone. But there's a way of managing
1:28:22yourself, managing the risk that is
1:28:25absolutely paramount
1:28:27and understanding how it should behave
1:28:29and how it should perform.
1:28:36Okay. So you would you would be pushed
1:28:38out with 32 more handles.
1:28:4232 more handles would have been pushed
1:28:44into your hypothetical account after
1:28:47taking a partial here or here, whichever
1:28:49one using the event horizon.
1:28:51And now again, we're getting closer to
1:28:54the time where this level is going to be
1:28:55like a big magnet. It's going to be like
1:28:57a huge magnet that says
1:29:00I'm trying to get back up to this level.
1:29:03Generally,
1:29:09it's a little too much now. like being
1:29:12obnoxious with that.
1:29:22It's a magnet. Okay. So, the the premise
1:29:27is we're looking for price to try to
1:29:28gravitate back towards that price
1:29:35and see how much more animated after the
1:29:37consolidation in a macro. If it
1:29:39consolidates there, we would expect it
1:29:41to get really animated immediately after
1:29:43that. And this is just an artifact of
1:29:45recent market activity. It's not
1:29:48something that I've seen a lot in
1:29:50previous decades. It's just something
1:29:52now has
1:29:55been an observation on my part. So, if I
1:29:58don't get the move I'm looking for here
1:29:59in that 20-minute window, then I'm I'm
1:30:02expecting it to be immediately right
1:30:04after 9 or not after 9, but after the
1:30:0610-minute marker of the new hour, like
1:30:09it is here, like 10 minutes after 9. And
1:30:11then you would expect the same thing at
1:30:1210 minutes after 10, 10 minutes after
1:30:1411, 10 minutes after 12. Every hour, the
1:30:17last 10 minutes of the hour that's
1:30:19closing and the first 10 minutes of the
1:30:21new hour, that's our macro time. So,
1:30:24we're looking for that little sweet spot
1:30:26in terms of time to justify the
1:30:29underlying narrative that we're
1:30:30operating operating under. And it didn't
1:30:33deliver in here, which was cause for
1:30:36concern.
1:30:37And by lowering our stop loss just above
1:30:40that high here, hypothetically from an
1:30:42entry up here, we
1:30:46we get pushed out of the transaction
1:30:48with a reward. Versus if you didn't do
1:30:51that and you kept your stop loss up here
1:30:54and you didn't pay attention to the
1:30:55things I was outlining down here, coming
1:30:58back up this much, you only have this to
1:31:01there in terms of open profit or
1:31:04unrealized hypothetical profit. And it
1:31:06becomes now a matter of managing the
1:31:09fear and anxiety of is it going to go
1:31:10for my stop? And the whole time you're
1:31:12watching Price, the internal dialogue
1:31:15goes to fearful fear. Now you're
1:31:18watching a horror movie and you're the
1:31:19star getting chased down by Jason or
1:31:21Michael Myers versus I'm in here like
1:31:25Maverick and Top Gun and I know there's
1:31:27bogeies in here somewhere, but I'm going
1:31:29to take a shot at the the target here.
1:31:31I'm going to take a shot at the target
1:31:33here and then I'm going to protect my uh
1:31:36my exit strategy. I'll bring it out here
1:31:38so that way they can shoot at me. I
1:31:40might get some shots on the wing of my
1:31:42jet, but I'm going to get out and and
1:31:44get back to my aircraft carrier and in
1:31:46good good position profitably. So, they
1:31:50don't destroy me. Even though it takes
1:31:52me out of my campaign of going down and
1:31:54attacking this level
1:31:56and that level, you're navigating in
1:31:59here knowing that okay, I'm seeing some
1:32:01signs here that we have a lot more
1:32:03turbulence than I'd want to see. And now
1:32:07I that's confirmed if we see a lot of
1:32:09animation post 10 minutes after 9, which
1:32:12is the last minute of that 20-minute
1:32:14window that we mark up as mark as a
1:32:15macro. And then what is it doing? It's
1:32:17accelerating and animating to the
1:32:18upside. So you know where it's going to
1:32:20go. It's going to take out this wick.
1:32:22It's going to go back into this civi
1:32:24here. So, we're looking at this now.
1:32:30Volume of bounce at the low.
1:32:33I'm going to take that wick lo off.
1:32:37And
1:32:39this is no longer that description. So,
1:32:42I take that out of there.
1:32:45middle marker.
1:32:47Now, because this is here
1:32:50as a cibby,
1:32:53we're going to see if it acts as an
1:32:54inversion fair value gap to draw us up
1:32:56into where the trading hours opening
1:32:57range gap settlement, which I feel
1:33:01fairly confident that I can change this
1:33:03now to
1:33:06high because we only got about 9 minutes
1:33:09before the opening bell and I don't
1:33:11really foresee it getting all the way up
1:33:12here or higher. So it's going to be
1:33:14somewhere below this where we open. But
1:33:17I want to see now does this create an
1:33:20inversion fair value gap.
1:33:34Once we get above it, does it support it
1:33:36to run up into that this line here? And
1:33:38that would be a gap closure.
1:33:49We're in the halfway point of this wick
1:33:51here. We're below that. So, if it can
1:33:53start putting bodies above that, it's
1:33:55got two things changing
1:33:58the tide of the market likely reaching
1:34:00up into that level as well.
1:34:05So, map out the next macro.
1:35:18In the beginning as a as a new student,
1:35:20they're not going to know.
1:35:23There's two primary draws that are in
1:35:26contention for the opening range, which
1:35:29is 9:30 to 10:00 in the morning.
1:35:32It is this
1:35:34this minor sellside which is over here
1:35:39that minor sellside and the regular
1:35:42trading hours opening range gap high
1:35:43where we settled at in regular trading
1:35:46hours Friday which is up here right now
1:35:50we're trading
1:35:54we're trading at 420
1:35:58I smiling right now I like the time. Um,
1:36:02let's see. Uh,
1:36:05420 is where we're at and we settled at
1:36:08487 half or Yeah, 4 487 half. So, 47
1:36:13handles higher. We're opening lower than
1:36:17where we settled. So, it's a it's a
1:36:19discount gap. And when it opens at a
1:36:21discount, it generally tries to get up
1:36:24into these levels here.
1:36:26So 420 in this area is that and it's met
1:36:30with two two lows here. So I don't know
1:36:34if it's going to be a straight shot
1:36:35right up into it. If it's going to be a
1:36:37gap fill.
1:36:38We have some formidable lows here from I
1:36:41mean look at look at how this is
1:36:42booking. I mean it's pretty it's pretty
1:36:44thick. It's a lot of it's a lot of trees
1:36:46to get through that that forest to get
1:36:48through that house.
1:36:52Little Red Riding Hood analogy.
1:36:55So this is a draw or this is a draw. So
1:36:58this the new student doesn't know won't
1:37:01know how to navigate that. So what you
1:37:04would have to do is submit yourself to
1:37:05just observing what is price trying to
1:37:07get to as when we open up at 9:30. Which
1:37:11one do you think it's going to go to? Do
1:37:13you think it's going to go to gap
1:37:15closure
1:37:16or half gap? So half got would be you
1:37:21know wherever we open up at 9:30 draw a
1:37:23fib up to that level at 48 40 I'm sorry
1:37:28487 and quarter
1:37:30or half rather whatever that halfway
1:37:33point is 70% of time it's got the
1:37:36probability of getting to that before
1:37:3710:00 in the morning. So in the first 30
1:37:39minutes if you have a gap half the gap
1:37:41gets filled by 10 a.m. 70% of the time.
1:37:45Or do we use this then drop in here and
1:37:49as acting as a cibby sell off tra take
1:37:52the uh sell side then go for either half
1:37:55gap whatever the low forms below here up
1:37:58to that level split it in half whatever
1:37:59that range is that would be half gap
1:38:02then try to trade that leave a runner on
1:38:05something to see if you can get to a
1:38:07full gap closure
1:38:13and so many people come and and they
1:38:15want to learn, but they don't want to
1:38:17sit down and and do things like this and
1:38:19have observations and laboratory
1:38:21experiments where you're not risking
1:38:23anything. You're learning. You're
1:38:24getting information.
1:38:28You're watching price action behave a
1:38:29certain way, measuring its willingness
1:38:31to continue or not continue with an
1:38:34underlying expectation.
1:38:40brand new people that are just uh you
1:38:43know foolish. They think they know
1:38:45everything. They think they know how to
1:38:46be taught. Um they think only watching
1:38:50trades live in front of them is the only
1:38:51way they can learn. That's
1:38:53entertainment. Okay? And or opening up
1:38:55the
1:38:57the investigation whether or not you
1:38:59should be copied as an influencer with
1:39:02their own transactions. And I don't ever
1:39:05give that to anybody.
1:39:07So
1:39:09this is proper learning. This is what I
1:39:11put myself through. This is what I put
1:39:13every one of my students through. And
1:39:16the ones that come out the other side
1:39:18having done so,
1:39:20they're the ones that are consistently
1:39:22finding their setups.
1:39:25I got to let these pups in.
1:41:11All
1:41:23right. So,
1:41:26we made our way into the upper half of
1:41:28that cibby
1:41:30and we want to see now I would want to
1:41:33see rather price want to try to grind up
1:41:36into that price right there.
1:41:41the first couple minutes, which will
1:41:43happen in the next
1:41:4570 70 seconds. It can come down. It can
1:41:49go down as far as this one
1:41:52here. That would clear out the low for
1:41:54anyone that's trailing their stop loss
1:41:55up here. It can drop down, take out that
1:41:58low, wick into this, then go back up
1:42:00into that. That's reasonable.
1:42:05That's not a trade. It's just an
1:42:07expectation to study and observe.
1:42:11If it completely wilts and breaks below
1:42:13here, then then obviously we're looking
1:42:15for that lower sell side
1:42:18down there.
1:42:20Right now, we're so close to the opening
1:42:21bell.
1:42:23The expectation is try to get back to
1:42:25gap closure.
1:42:28That's fair value in the purest sense of
1:42:30where we settled yesterday or Friday
1:42:32rather, I'm sorry,
1:42:34for regular trading hours.
1:42:37All
1:42:47right, 8 seconds.
1:42:51Watch how much movement occurs
1:42:53immediately at 9:30.
1:43:29See how much energy it is pulling it
1:43:31back up into the regular trading hours.
1:43:32Opening range gap high and regular
1:43:35trading hours opening range gap low is
1:43:37here.
1:43:40Opening price
1:44:00Boom. Done. Just like that.
1:44:07>> Hard to go again. 70% likelihood.
1:44:12>> And
1:44:14yeah, and there we're at. We're going
1:44:16right back towards the high of that
1:44:17daily buy sign balance sell side
1:44:19efficiency. And we're from the daily
1:44:20chart.
1:44:23That's this right here. We're going
1:44:26towards the high of that.
1:44:30That's the high of it.
1:44:36See what it did here?
1:44:38Right down into the lower half.
1:44:42It kept that low intact, which I found
1:44:44actually interesting cuz I thought they
1:44:46would come down and take that out, then
1:44:48rip it. because they didn't take that.
1:44:50It makes me think that this might be
1:44:52short-lived.
1:44:54It's going up to then come back down and
1:44:56go after anyone that's trailed down
1:44:58here. So, remember what I was saying
1:45:01down here by splitting the range in half
1:45:04between targets, knowing what you're
1:45:06looking for,
1:45:09you can see significant or intermediate
1:45:11term. Now, it's obvious to understand
1:45:13what an intermediate term low is now
1:45:15that it's hindsight, but being able to
1:45:17see it and understand why it should
1:45:19flesh out like that as an intermediate
1:45:20term low, not a short-term low. Like,
1:45:23like this is a short-term low. That's a
1:45:25short-term high. That's a intermediate
1:45:27term high. That's an immediate term
1:45:29high. And what you're seeing is
1:45:34significant price runs or significant
1:45:36lows or highs are forming at long-term
1:45:38or intermediate term lows and highs.
1:45:42knowing how they should form, what time
1:45:45they're going to form inside the macro.
1:45:48Um halfway between a target where it was
1:45:50reasonable to expect it. Uh so we went
1:45:53above the gap. Now look what we're
1:45:55doing. We want to see if it comes right
1:45:57back down and takes out that low. So the
1:46:00the folks that are long, they want to be
1:46:03in this for, you know, any length of
1:46:06time. Their stop loss is going to be
1:46:08below here. If we can get down there and
1:46:11accelerate below that, our attention
1:46:14goes to that sell side down here.
1:46:18And again, this is just navigation. It's
1:46:20not trade entry. It's just knowing what
1:46:24to expect in reading price action
1:46:29right there, right below that low.
1:46:31That's that to me is a is a
1:46:35prime candidate for a stop rate cuz
1:46:38there since this low there hasn't been
1:46:40any hunt at all on sellside
1:46:43and right out the gate at 9:30 we ran
1:46:46two gap closure and more.
1:46:49So how how how
1:46:54is it that they get a free ride here and
1:46:57no
1:47:01No uh adversity. It's not likely. So,
1:47:04I'm looking at this to see if this will
1:47:07act as an inversion fair value gap.
1:47:11See if we can go down and blow those
1:47:12lows out
1:47:17there like somewhere in here. Treat this
1:47:20as a means of not going higher but go
1:47:23lower and take out that that low right
1:47:25there. And then it becomes a really
1:47:26interesting study. But right now it's a
1:47:31it's a question. What is it going to do
1:47:32next?
1:47:56doing this every single day, practicing.
1:47:59Um,
1:48:01for people that work in the daytime, it
1:48:03would be in their interest really to
1:48:06have a like a software program
1:48:10or if you're using um a Windows-based
1:48:12application, I think you can hold down
1:48:15um control alt and hit R and it records
1:48:19your screen.
1:48:21And then turn that on before you leave
1:48:22work and just let it record all day
1:48:24long. A one minute chart all day long.
1:48:27And when you get home, after you get
1:48:28showered, changed, go to gym, eat
1:48:30dinner, whatever, however, where family
1:48:33time you have, sit down and watch the uh
1:48:36one minute time frame book price.
1:48:39And you have the benefit of pausing it
1:48:41and saying, "Okay, right now I think
1:48:43it's going to do this. I think it should
1:48:45do that. Shouldn't do this. Shouldn't do
1:48:46that." and then continuously unpause it
1:48:48and do that for the first hour between
1:48:509:30 and 10:30. And if you just do that,
1:48:54like that's like look, see what it just
1:48:55did? It took out the took out the lows
1:48:57based on everything I just outlined.
1:49:00Now, I'm not trying to beat my chest.
1:49:01Obviously, I know how to do that, but um
1:49:03that to me is indicative of whether or
1:49:06not we're going to go higher or lower
1:49:07because we took that out. And if we come
1:49:10back above and treat this as an
1:49:11inversion fair value gap again, then
1:49:14we'll make a higher high and keep
1:49:15running higher. But if we keep staying
1:49:18below this gap,
1:49:20this low is next. And then the sell side
1:49:23down here is where we're going to
1:49:24target. If it trades there, we're done
1:49:27for the session. And we've done a really
1:49:28good lecture for Kaden.
1:49:33Have you learned anything yet?
1:49:38>> Hold on. Piper's acting stupid again. I
1:49:39got to let her out. What's wrong with
1:49:41you, girl?
1:49:57It's not coming.
1:50:13So now
1:50:16I'm I'm trying to pantomime which is
1:50:18very difficult for me to do the the
1:50:21perspective of a new trader a new
1:50:23student but by observing what things I
1:50:29talk about that are important in in
1:50:31charting uh the morning session leading
1:50:33up to the opening range which is 9:30 to
1:50:3510 o'clock in the morning. U we we
1:50:39literally observed all the things in
1:50:40here.
1:50:42We timed where there could have been
1:50:44potentially an intermediate term low
1:50:46based on this becoming an inversion fair
1:50:48value gap and trading above it. And then
1:50:51once we got to this point here right
1:50:53before 930 I said that you know we're
1:50:55going to gravitate towards this level
1:50:58here
1:51:00and it did that and then I said now
1:51:02because it's done that straight out the
1:51:03gate and it went above the gap
1:51:06it's reasonable for them to come back
1:51:07down and take out people that are long
1:51:10and their stop losses are right there.
1:51:13That in and of itself as a as a brand
1:51:16new student
1:51:19I remember seeing things like that when
1:51:21I was studying and the confidence boost
1:51:23that it gave like I saw that now I
1:51:26didn't make any money on it but I saw
1:51:28that observation and it happened in my
1:51:31own witness I watched it happen and
1:51:34those little things those little out of
1:51:36boys out a girl that pat on the back
1:51:38like I I saw something I observed
1:51:41something and I measured its delivery. I
1:51:45watched it behave. I watched every
1:51:47individual candlestick behave in a
1:51:49certain manner. Look where the the
1:51:51bodies are staying in and we did get a
1:51:53close above it there. But look, it
1:51:54immediately rejected there, which is
1:51:55what you want to see. The lower half is
1:51:58the the premium sensitivity. If this is
1:52:00going to stay as a a bearish fair value
1:52:02gap like this, that's its original
1:52:06utilization where it was formed first
1:52:09bearish market. This this will be
1:52:10treated as a as a premium array to send
1:52:13prices lower. We're down inside this
1:52:15area here. Now, we want to see this lose
1:52:18its ability to have discount
1:52:20sensitivity. In other words, we want to
1:52:21see it wax right through that. Just cut
1:52:23right on through it. And if it does
1:52:25that, this is going to get smoked and
1:52:27then then they'll take the cell side
1:52:28down here.
1:52:53If I were trading based on everything I
1:52:55said, um I would have been looking for a
1:52:58run long to get towards that gap. Once
1:53:02it would have went through it, I chances
1:53:04are I would have never got all this up
1:53:06here. But then as soon as this
1:53:07candlestick went down and closed like
1:53:09that, I would have immediately as I
1:53:11indicated to treat this as an inversion
1:53:13fair value gap and this candlestick open
1:53:15trading up until immediate rebalance
1:53:18right there.
1:53:20I would be short aiming for that. And
1:53:23I'm not confident that I would have uh
1:53:25got out down here with any significant
1:53:28size, but I would definitely have, you
1:53:31know, 50% to 65% of trade taken off
1:53:34below that low here. And the stop would
1:53:37be right above this high here on any
1:53:38balance.
1:53:43And I'd be looking for a partial below
1:53:44that low here. But halfway between that
1:53:48low and this line, that's where I would
1:53:50have my partial. And then I would leave
1:53:52the rest to try to run to that sell
1:53:55side, which is this low
1:53:58back over here
1:54:01right there.
1:54:12And I'm sure, you know, to someone
1:54:16that's already trading and they have a
1:54:18model that whether they made money or
1:54:20not, it doesn't make a difference. But
1:54:22when they when they'll watch a lecture
1:54:23like this, I don't know why if they're
1:54:25watching my stuff, they're not trying to
1:54:26learn why they wasting their time with
1:54:27me.
1:54:29But these types of lectures, they're not
1:54:31going to be so sexy in the eyes of
1:54:34people that have been trading for a
1:54:35little while.
1:54:37But for a brand new student in price
1:54:39action using my concepts, uh these are
1:54:41like gold mines because you know, here
1:54:44we are. We're talking about it. We're
1:54:45reading it and uh interpreting price as
1:54:49it's going and what what's permissible
1:54:52for price to do. What is more
1:54:55significant if it does certain things?
1:54:58um that that's the observations that
1:55:00you're supposed to be measuring in your
1:55:01own journal and every time we mention
1:55:04something in this discussion today and
1:55:08tape reading over price action
1:55:12every time I brought up something saying
1:55:13okay it should do this I want to see
1:55:16this I want to I want to watch and see
1:55:19if it does these types of things those
1:55:21are inflection points where you have to
1:55:24those are the points in which while
1:55:26you're watching this video, you
1:55:28screenshot that portion, what price has
1:55:30done up at that moment. Okay? And then
1:55:34you annotate where all these open little
1:55:36spaces are on my chart. Okay? You're
1:55:39going to make little notations. You're
1:55:40going to type them out on your own. And
1:55:42you're going to say, you know, because
1:55:45it went above the gap,
1:55:48the high of it for opening range gap for
1:55:51regular trading hours. because it did
1:55:53that. It's reasonable to anticipate
1:55:55these stops to be t uh traded and then
1:55:58trade down into this gap again.
1:56:01And you want to do that right when this
1:56:03candlestick closed and this one opened.
1:56:05You want to screenshot that moment on
1:56:07this video and then annotate when it
1:56:11does go down like this
1:56:14and how it behaved and traded right back
1:56:16up into the high of that gap that was
1:56:20called out as an inversion fair value
1:56:22gap
1:56:25right here.
1:56:31I don't trust my eyes. What's the close
1:56:32on that? 480 half and open is
1:56:38it's no volume imbalance. I'll check and
1:56:40make sure. But this is immediate
1:56:41rebalance. It can happen the next candle
1:56:44as it forms or the very next one. So
1:56:47there's there's no fair value gap there.
1:56:50So it's immediate rebalance. Whenever
1:56:51you see that, this is also what you want
1:56:53to put in your journal. Whenever you see
1:56:55that, that is one of my strongest PD
1:56:57rays because it's immediate feedback.
1:56:59Immediate. You'll you'll know when
1:57:01you're looking at inversion fair value
1:57:02gaps. If you get this type of thing
1:57:03here, it's immediate. It's it's so
1:57:06sweet. It's so consistent. There's
1:57:07nothing better than that one. Nothing
1:57:09better than that one because you're
1:57:11using narrative the context of what the
1:57:13market structure is indicating. Um very
1:57:16obvious draw on liquidity and it's got
1:57:19something so clear that you can't hide
1:57:21it. Okay, they're never going to change
1:57:22this apparatus in price action. this big
1:57:25up close candle after taking a run into
1:57:29clearing out the red trading hours high
1:57:31where we settled on Friday.
1:57:34As soon as we get this close right here,
1:57:36the very next candle I'm watching, do we
1:57:38get to the high of that? If it trades
1:57:39there, I'm I'm going to sell short and
1:57:42the stop loss would be whatever this up
1:57:44close candle is right here. Split that
1:57:45in half. That's mean threshold. One tick
1:57:47above that. I'll show you what it looks
1:57:49like
1:57:53there.
1:57:54to there. One tick above that, that's
1:57:56the stop. Well, that's too many for me.
1:57:58Well, then you're going to have to use a
1:58:00micro. Well, I don't I can't make money
1:58:02with micros. Well, you don't have the
1:58:04right mindset for a trader. You're a
1:58:06gambler. You're looking at the only
1:58:08outcome that's the the the most
1:58:10magnitude bang for your buck and you're
1:58:12not considering the risks.
1:58:15What you're doing is you're trying to
1:58:16time a significant high during the most
1:58:18volatile time of the day. So you have to
1:58:20know how to define that risk and be
1:58:23comfortable with it. And that
1:58:25candlestick opens up, trades out to
1:58:27here. And then we get the immediate
1:58:28rebalance, which is now immediate
1:58:31delivery to the sell side there. And
1:58:34there, look how fast it was. And now
1:58:36look where we're at. We're in this muck.
1:58:38Okay. So it I generally think it could
1:58:41go lower, but you know, I might be
1:58:44proven wrong here, but I want to see it,
1:58:46you know, Wayne and and fail to go any
1:58:49higher and just like walt its way down
1:58:52into this low and touch this line here.
1:58:55And then if it can touch this line, we
1:58:57are measuring then at that moment how
1:58:59much emphasis is placed on continuing
1:59:02lower or does it reject and go higher
1:59:05from there or does it just go higher
1:59:06from right here?
1:59:08I'm watching the lower half of this gap,
1:59:10this dotted line, and below it to this
1:59:12line low. I'm watching how the the
1:59:15bodies behave in here. is if they keep
1:59:17staying unable to get above and close
1:59:19above the midpoint,
1:59:22then it to me I'm expecting lower

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