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YouTube transcript (PIYh0CxoY9c) — Transcript

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0:35welcome back folks this is
0:37the third teaching of eight from the
0:39december content of the ict mentorship
0:42we'll be talking about reinforcing order
0:44block theory
0:46selecting and avoiding
0:49and we're going to first talk about
0:51the
0:52bullish order block everything i say
0:54here you'll just reverse for a bearish
0:56order block to save time
1:00definition of a bullish order block is
1:02the lowest candle
1:04or price bar
1:06with a down close
1:08that has the most range
1:11between open to close
1:13and is near a support level
1:18validation of a bullish order block is
1:20when the high
1:22of the lowest down candle or price bar
1:25is traded through by a later formed
1:27candle or price bar
1:31entry techniques using a bullet shorter
1:33block
1:34when price trades higher
1:36away from the bullish order block and
1:38then returns to the bullish order block
1:40candle or price bar high
1:43this is bullish and can be used for a
1:46bullish entry
1:49defining risk with bullish order block
1:53the low of the bullish order block is
1:55the location of a relatively safe stop
1:58loss placement
2:00just below the 50 percent of the order
2:02block total range
2:04is also considered to be a good location
2:06to raise the stop loss after price runs
2:08away from the bullish order block to
2:10reduce risk when applicable
2:16okay let's take a look at a supposed
2:18support line now that can be in the form
2:21of a old low on a long term or higher
2:25time frame chart
2:26it could be an old high where price has
2:28moved above recently and now we're
2:30trying back down into it so simple
2:32support resistance ideas are just enough
2:35here but the main thing is you want to
2:36be using it on a higher time frame
2:37charts like a monthly weekly or daily
2:41and eventually you'll see price trade
2:43down into this
2:45level that you identified as a support
2:47level
2:48once price trades down into the support
2:50level and it could trade to it or just
2:51through it doesn't make a difference but
2:53what we're doing is we're waiting for
2:55price to show us indications
2:57that smart money or a large body of
3:00big flows or those individuals that are
3:03on an institutional level they have a
3:05whole lot more collectively than we do
3:07in terms of money when they participate
3:09in a move it'll be seen in price action
3:14so when we have this down candle we have
3:16already
3:17assuming
3:18that this may be a bullish order block
3:21we don't know that yet
3:23until at a later time when another
3:25candle trades through it what are we
3:27specifically aiming for
3:29we're identifying our focus
3:32the down candle is high when that is
3:35violated
3:36with a new candle and it trades through
3:38that high now we have a validated
3:41bullish order block
3:48this candle validates the down candle as
3:50a bullish order block
3:52now this moment
3:54if we trade back down once that down
3:57candle or suspected bullish order blocks
3:59highs violated
4:01we can now highlight that candle's high
4:04and even in the very candle that broke
4:08that down candle's high if it trades
4:10back down to that down candle's high or
4:12the voltage order blocks high
4:14that could be a retraded
4:17price that which we could day trade off
4:19of or enter our longs early in other
4:22words we don't have to wait for a later
4:25time for it to trade back down to this
4:27level
4:31eventually price will
4:33run away
4:34at this point if you didn't enter on a
4:37re-trade at the bullish order blocks
4:40high you're simply going to be waiting
4:42for price to want to pull back
4:45now we have indications that there has
4:46been displacement in the marketplace
4:49that means someone with a whole lot of
4:51money and a whole lot of interest
4:52wanting to see higher prices
4:54is now in play
4:56they are participating in the
4:57marketplace
4:58this is the evidence in price action
5:00that you have institutional sponsorship
5:02behind the move
5:04large flows or
5:06institutional traders have the capacity
5:09to move price whereas we as lower
5:12grade traders in terms of retail or
5:15smaller traders in terms of respect of a
5:17bank or
5:18a large
5:20entity
5:21in an institutional capacity
5:24we can't move the marketplace but they
5:26as a whole collectively can
5:29so what we do is we wait we're patiently
5:32watching price we anticipate prices
5:34start to retrade back down into
5:37that down candle or bullish order blocks
5:39high
5:40at this moment
5:42we can set alerts
5:45we identify the high on that candle now
5:47i'm using the bodies of the candles you
5:48may end up
5:49using the wick but i want your focus
5:52primarily on the bodies of the candles
5:53and when we talk about wicks
5:55i'm going to overlap order blocks with
5:57fair value gas because that's going to
5:59be the answer to many of your questions
6:01as it relates to when do we use the
6:02wicks and when do we use the buys of the
6:04candles but primarily i want you
6:06focusing on the bodies of the candle
6:07when we're talking about order blocks as
6:09a whole
6:11so at some point when we see that level
6:14okay that high of that order block when
6:16we're close to it we can now set an
6:19alert
6:20we can set our platform to remind us
6:22with a text to our phone or email us or
6:26however it is that you would be uh
6:27alerted by your platform some platforms
6:30have
6:31pretty sophisticated means of contacting
6:33you others are just simply a
6:35you know an audible alarm that goes off
6:38on your computer to draw your attention
6:40to a specific market
6:42but until then you're going to submit to
6:44time you're waiting now this is
6:46sometimes the hardest thing to do as a
6:48trader
6:49we identify what we're looking for in
6:51terms of a entry
6:53but you have to wait for price to get
6:55down there
6:56while price is trading lower you should
7:00already formulate an idea of what it is
7:02that you're going to do
7:04in terms of risk how much you're going
7:06to put on the trade when you buy long
7:08and where you're aiming to get out of a
7:10market with a profit all those things
7:12should be factored in during this time
7:17eventually price will drive down into
7:19that down candle or bullish order blocks
7:21high
7:22at that moment if you're in front of
7:24your charts that's when you enter the
7:26market with a long position
7:30if you have a limit order you're going
7:32to add a few pips and preferably it's
7:34about five pips we like to add
7:36to a bullish candle
7:38and that way the spread will be able to
7:40kick us in on a long entry
7:43but you don't have to always rely on a
7:45limit order
7:46you can go and rate the market as it
7:48hits
7:49that down candle now sometimes it'll
7:51drive a little bit deeper into that
7:53bullish order block and that's okay
7:55but for now i want you to try to key off
7:57your demo entries on the down candles
8:01body of the candle the high and the cut
8:03or the open in this instance
8:06any down candle
8:08the body is going to begin with the
8:09opening
8:10and it ends with the close
8:16what we're actually looking at is
8:18internal range liquidity
8:21now when we're trading inside the range
8:23and that range is defined here
8:27what we're looking for is an expansion
8:30up
8:31into a known level of what what's up
8:34there
8:36well that's going to come in the form of
8:38external range liquidity
8:40the external range liquidity is where
8:42we're going to be looking
8:44to offset
8:46some or all of our long position
8:52now we identified the buy level we've
8:54entered the market
8:56before we do this what we've
8:59should have had in mind
9:01is i ideally where we're looking to take
9:03our profits that's up here above an old
9:05high
9:06and that's going to be in the form of
9:07buy stops so if we're buying or entering
9:10long
9:12inside of a known range at a bullish
9:14order block at internal range liquidity
9:17we're buying the liquidity it's offered
9:19at that level
9:21we're going to be looking to
9:23sell our position to willing buyers
9:26in the form of those individuals that
9:28hold buy stops above that old high
9:31that's all well and good for profit
9:32taking but what do we do for risk
9:35we take our attention back down to that
9:38bullish order block because it's going
9:39to give you everything you need for your
9:41trading plan
9:43we identify the entry at the open
9:46of the down candle that's our buy point
9:48or five pips above it
9:52but we want to focus our attention in
9:53the midway point of that down candle
9:56that's going to be in the form of the
9:57mean threshold
9:59ideally the best order blocks will not
10:02see price trade down below the midway
10:04point of the entire body of the candle
10:08you're going to measure the open to the
10:09close on the down candle to measure
10:12where the middle of it is do not use the
10:14wicks don't use the very high or the
10:15very low
10:16measure your
10:18fibonacci level
10:2050 level
10:22or halfway point is the mean threshold
10:24only on a
10:26bullish
10:26order block
10:28it's the same thing said with a bearish
10:29order block but you just don't want to
10:31see price drive down deeper than the
10:34mean threshold by very much it can stab
10:35through it just by a little bit
10:37but we primarily don't want to see it
10:39trade down there at all the better order
10:41blocks won't do it at all
10:44and your protective cell stop is going
10:46to be below the bullish order blocks low
10:49or below the close
10:51now at this point depending upon where
10:53that low is it could be
10:55the low of the
10:57wick
10:58but primarily you're going to be looking
10:59at the low
11:00formed by the close of the body of that
11:02candle
11:08now again
11:09focusing on what we anticipate in price
11:12eventually
11:13price should show a responsiveness and
11:16trade up
11:18and through
11:21our old high when that happens
11:24you're going to be looking to take
11:25partial profits or all your profits
11:28depend upon how big that move was and
11:29how much profitability you obtained what
11:31you're actually trying to do is you're
11:33going to be pairing your long exit with
11:34willing buy stops and that is
11:36essentially
11:37bullish order block trading in a
11:39nutshell
11:40it's been complicated
11:42by many people on
11:44the youtube that's adopted it
11:47and those that want to use it on twitter
11:49and on social media they've shared some
11:51several ideas
11:52but i want to focus on the simplicity of
11:56them
11:57here and then we're going to graduate
11:59into more teaching
12:01uh later on in this month that are going
12:03to be
12:04subordinate
12:05sub topics that are going to be taught
12:08to you
12:09during the week of christmas so i'm
12:11going to give you actually more
12:12amplified teaching with the order block
12:14so this is not the entire
12:16treaty on
12:17[Music]
12:18order box as it relates to
12:20buying and selling
12:24okay liquidity based bias
12:28okay if the monthly chart is bearish
12:31the weekly charts bearish and the daily
12:33charts bearish
12:35that'll give us
12:36a wonderful opportunity
12:38to get in sync with institutional order
12:40flow
12:43intraday charts four hours and less will
12:46be correcting and retracing higher
12:49now again the markets are predisposed to
12:51go lower because the monthly weekly
12:52daily we have arrived at a bias that we
12:55have seen price want to go lower it's
12:57been making lower lows and lower highs
13:00support levels are giving way
13:02resistance levels are being formed and
13:04being respected
13:05when you see those evidences in price
13:07along the lines of the monthly weekly
13:09and daily we can zero in on the four
13:11hour
13:12okay and start looking for liquidity
13:16on the buy side in other words there's
13:17going to be a premium built into the
13:19marketplace or
13:20a rally
13:21you're going to be looking to sell
13:22rallies
13:25protected by stop raids or returns to
13:27bearish order blocks
13:29or fair value gaps and or filling of a
13:32liquidity void each offering a potential
13:34low resistance liquidity run
13:36shorting for a target under a recent low
13:40what low would you be targeting well you
13:42want to be primarily looking to see
13:44what's near term on the daily chart what
13:47liquidity is resting on that daily chart
13:49your
13:50trade on a short could be looking to
13:52take advantage of buying back below
13:55a daily low where cell stops would be
13:57resting
13:59if there is an objective that you can
14:00see on the weekly chart much in the same
14:02way we would have identified something
14:04on the daily we would be looking for
14:05that objective as well
14:07primarily you'll be trading in the
14:09direction of the monthly chart because
14:11that's where the large funds and
14:13institutional order flow is going to
14:15begin and then it moves down into the
14:18weekly chart then it moves down into the
14:20daily chart the daily chart is the most
14:23dynamic of these three time frames and
14:25you'll see a lot more trades that
14:27actually
14:28counter
14:29long-term higher time frame
14:30institutional order flow
14:32so that weekly chart will have a lot
14:34longer time period required to change
14:37direction versus the daily chart that
14:39can go up and down in multiple times and
14:41still maintain the bearish nature of the
14:43weekly and the monthly and obviously the
14:46monthly takes a long time to change
14:47directions and that's where the power of
14:49what i'm going to teach you in this
14:51module will give you
14:53okay liquidity-based bias for
14:56a bullish
14:57monthly chart
14:59bullish weekly chart and a bullish daily
15:01chart
15:03interest rate charts four hours or less
15:05will be correcting and retracing lower
15:08this is where you anticipate the market
15:09to enter into a discount and seek sell
15:12side liquidity to buy from
15:15and what we just showed you an example
15:17of
15:18was the bullish order block that you
15:19would use in this instance and we're
15:20actually going to go into the dollar
15:21index and actually break it down show
15:22you all this
15:24conceptually protective cell stop raids
15:27or returns to bullish order blocks or
15:29fair value gaps and or filling up a
15:32liquidity void each offering a potential
15:34low risk liquidity run
15:36buying for a target above a recent high
15:39just like we were referring to earlier
15:41you're going to be aiming for something
15:43on the daily chart preferably
15:45and you're going to be looking for buy
15:46stops above the marketplace on a daily
15:48high it could be an um it could be
15:50yesterday's high it could be
15:52last week's high that you can see on the
15:53daily chart it could be last month's
15:55high
15:56it could be intra week high
15:58okay but try to find something on the
16:00daily chart
16:02to give you a trade
16:04in terms of uh framing your idea that
16:06you want to be a buyer and then
16:09preferably look for something in the
16:10weekly chart that would support even
16:11higher because if you have something
16:13higher on the weekly chart
16:14you probably will have a lot better odds
16:16behind your
16:18trade
16:19if you're looking to move into a level
16:20on the weekly chart and preferably
16:22obviously
16:24the monthly chart
16:26if it's bullish you will be in sync with
16:28the institutional overflow that will be
16:30seen by studying that time frame
16:33so let's take a look at the monthly
16:35weekly and daily on the dollar index and
16:38give a conceptual idea of what i'm
16:40referring to here using bullish over
16:42blocks
16:47let's take a look at the resistance
16:51levels
16:52you see here
16:56we have equal highs here
16:58okay
17:00and
17:00price came down and hit
17:03level of
17:05[Music]
17:07support
17:10[Music]
17:12so that happened here
17:15okay so we know that there's equal highs
17:17up here
17:19so what's above equal highs what was
17:21taught to you in september
17:22it's going to be in the form of buy
17:24stops
17:25it's too clean too neat
17:28and price come down
17:30cleared out an old low but we're not
17:32going to talk about
17:34stop
17:35runs here
17:37we're going to look at this as a support
17:39level okay all we're doing is
17:40classifying this as a support
17:42price comes down hits that
17:45okay and we're gonna wait to see if
17:47there's a willingness to trade away from
17:49it we see it happen here
17:52when that occurs this up candle
17:54violates the down candle
17:58right before the level was hit at this
17:59support level
18:01so once we have that
18:03[Music]
18:09we now have a order block that's
18:11validated so now we can be a buyer
18:14if price comes back down into this
18:16candles opening
18:18where it starts to body the candle
18:20that price level is 94.58
18:25and just double check that the opening
18:26is 90 458 yes correct
18:29so when price trades back
18:31down into it as you can see here move a
18:34little bit more show more data
18:36[Music]
18:37price trades down into it on this candle
18:39now it quickly moves away from it on
18:41this candle here
18:43[Music]
18:44but at that moment when it hits this
18:46okay the the low on that candle
18:53comes in at 9406
18:579407
18:59and the level we had here is 94.58
19:04so about uh about 50 pips
19:07[Music]
19:08thereabouts
19:09in terms of movement through the level
19:11and again this is a monthly chart so a
19:12little bit of
19:13uh flexibility is necessary i'm looking
19:16for
19:18very easy to find low resistance
19:21liquidity runs with a bullish order
19:22block
19:24so when price hits it
19:26this particular month is
19:29august of 2016 so we could expect to see
19:32some bullishness
19:34in august
19:36and i'll let you see the rest of the
19:38data here you can see clearly that the
19:39market did
19:41in fact
19:42trade all the way up through to equal
19:45highs here the present time of this
19:46recording uh december
19:502016.
19:53and we're going to take another look at
19:55this down candle here because this order
19:58block becomes another support level
19:59remember if we anticipate bullish price
20:02here
20:03doesn't that by nature support price in
20:06the form of support and resistance ideas
20:09so this level here if we see a down
20:11candle
20:13off of that level
20:14that could be a potential bullish order
20:16block as well
20:17remember it's going to be trading down
20:19into that level and why are they doing
20:20this they're going down there to pick up
20:22more
20:23opportunities to get long at a cheaper
20:26price
20:27more discount price
20:29so when price was a bearish can locator
20:32that's when the order block would have
20:34been hit again okay and then what do we
20:36have here on this candle
20:37it violates this down candle's high okay
20:41and the open on that candle is the open
20:43is 95.98
20:47and the level is 95.98 on our level here
20:50on the segment
20:52and you can see price hits that level
20:54here it opens on this candle and trades
20:56all the way down hits it
20:58this would be another support level
21:00chances of 18 prices trade higher so
21:03we're going to do is we're going to drop
21:04down into a weekly chart and we're going
21:06to start looking at this
21:09month here and we're going to put a
21:11vertical line there
21:14delineating everything to the
21:16right
21:19of this vertical line and i'm going to
21:21highlight it
21:23big and bold
21:26so we can't miss it and we'll just make
21:28it a big old bright
21:31red color
21:34okay so now we're going to drop down
21:35into a weekly chart
21:37and we'll see how this
21:39gives us a weekly
21:44bias as well
21:47here's here it is here price trades down
21:50into that level
21:51okay
21:52price rallies away
21:56when price rallies away like that
21:59we're going to be looking for
22:01an objective
22:02to go long
22:05on this level in here
22:08right in here
22:09so how many times did price move away
22:13from this down candle is by and
22:15identified again we're going back out to
22:16a monthly chart
22:22[Music]
22:25that's this level here so in
22:30may
22:32prices validated that order block in may
22:35okay so
22:36we're going to move over into
22:40may
22:43there's may
22:45okay and here's the order block level on
22:47the monthly chart
22:49so price trades down into it here
22:53and we wait to see does price want to
22:56rally away
22:58we're in this is the level you have to
23:00be identifying because it's the monthly
23:02order block the bullish order block on a
23:04monthly level
23:07so we're gonna broaden that one up a
23:09little bit
23:10[Music]
23:12okay and then price is trading down into
23:14that so what are we waiting for we're
23:16waiting for evidence to support the idea
23:18that
23:20the large traders want to send price
23:22higher
23:24price does that here it violates this
23:26down candle right here
23:29it's it's high is broken right there
23:32okay right there so now this
23:35order block on a monthly level can be
23:37refined
23:43to this level right there
23:46okay so price trades through this down
23:49candle now this down candle in a weekly
23:52has been
23:53refined from a monthly level
23:56so now we can anticipate this level if
23:58it's traded back down into it we could
24:00be a buyer at that level
24:02we see that happening here price trades
24:05down into it
24:07notice the down candles
24:08midpoint or mean threshold
24:20right here
24:21just pierces it just a little bit but
24:24does not go down below the body of the
24:25down candle
24:27what do we do we identify we're in a
24:28range the range is this low to this high
24:32it's trading back down into
24:34internal range liquidity absorbing some
24:37more buys in this down candle
24:39we should see the responsiveness on the
24:41upside now mind you this is a weekly
24:42chart look at the body's respect
24:45of this down candle's opening
24:47okay
24:48yes it trades down through a little bit
24:49but we could be a buyer at that level
24:51here with the expectation that we're
24:53going to see a run
24:55we're at
24:57right above these highs
24:59okay right above these highs so now
25:01here's when bearish order blocks
25:04are not considered
25:06this up candle great for this down move
25:09here we would not look to that as a
25:12selling point we don't look at that as
25:14we're going to get short here when it
25:15trades up to that
25:17this
25:18up candle we don't look at that and say
25:19okay we're going to get short why
25:21because the higher time frame is
25:22suggesting we're going to be going
25:23higher
25:24overall
25:25long term in the long term trend
25:27direction is going to drive a lot more
25:30significant price action
25:32than looking for sales in other words
25:34we're going to be looking to be buyers
25:36on dips
25:37and selling on the rallies to take
25:39profit
25:41so that's when you want to avoid
25:43uh bearish order blocks because you're
25:44standing in way of institutional order
25:46flow
25:46so there's going to be buy stops above
25:48these highs here that we're going to
25:50sell
25:50our longs to they're willing buyers
25:52great we're going to be willing sellers
25:54if price gets up to that point from down
25:56here
25:57in the form of
25:59pips
26:03we have
26:04a range
26:11of
26:12almost 300 pips 290 pips potential range
26:16there okay
26:18and there's nothing wrong with that
26:22so now also
26:25we have
26:26this level in here we can be keying off
26:29of
26:29on a daily time frame
26:32and we can use a four hour time frame as
26:35well to refine
26:36that we're going to look at
26:39this level here
26:40price shows the willingness to want to
26:42move away and it does
26:44we can now identify this
26:47level here which was the other
26:49monthly higher bullish shoulder block
26:51we're going to refine that level too
26:53well how are we going to refine it well
26:55we have this down candle right before
26:56the price moves higher this candle
26:59trading through the last down candle
27:01right here
27:02that
27:03validates this down can that's the
27:05bullish order block
27:06so we can borrow this level for a moment
27:14put it right on the opening
27:16okay price validates the bullshotter
27:18block right there
27:19okay
27:20and
27:22you can see that it trades back down
27:23through it
27:25in this instance we didn't get that much
27:26of a move away we want to see price move
27:29away we want to see that
27:31preferably what i'm looking for is a
27:32move of whatever the order block is now
27:35this is a notation for your notes okay
27:37this is the first time i've included
27:39this
27:40if you see
27:43a move here's your order block
27:45what i like to look for is
27:48two to three
27:51heights
27:52or the range if you will of the order
27:54block i want to see at least two to
27:56three times that
27:57as a rally away and that will give me a
28:00nice decent expectation to see a
28:03retracement back into to getting another
28:05opportunity to buy long
28:08we have that
28:11there
28:13price rallies up to this point here and
28:15then comes all the way back down
28:18into what we have this down candle we
28:20could have kept that there and it would
28:22we would have missed any new opportunity
28:24but look what we have here this down
28:25candle has traded into that old order
28:27block as well so now we have a higher
28:30bullish order block right here because
28:32this candles open
28:35is higher than this candle so now we can
28:37refine that same level
28:39just up to a higher time frame or not a
28:41higher time frame but a
28:43higher order block
28:44so now we can refine our level to that
28:46point right there
28:48price moves away trades through this
28:52channel's high right here validating
28:53this is a bullish order block
28:56again we're going to be looking for a
28:57rally of
28:59two to three times the order blocks
29:01body's height
29:03so it has to trade about here here here
29:06so at this point here we have a valid
29:08swing so now we can look for a
29:10retracement back down
29:12this candle's opening
29:14is 95.85
29:17the low on this candle
29:21is
29:2295.87 so it's only two pips away from
29:24that
29:26the high on this candle
29:28is 95 86 so it still was only one pick
29:31away from that as well
29:33but we always add pips to our levels to
29:36get in to cover the dealing spread
29:40we also see another higher down
29:43candle that's higher than this one
29:47we have to move our level up to that new
29:51down candle
29:53every time it creates a new down candle
29:55that's going to be the new potential
29:57bullish order block
29:59price trades down into it here so
30:00there's another opportunity a buyer here
30:03so that's what we do from a higher time
30:05frame
30:06to a lower time frame we refine our
30:07entries and our levels with this in mind
30:13price makes a run through
30:16even after taking this
30:18level out here you can take partial
30:19profits out here
30:21okay take a little bit more profits out
30:24at an old
30:25weekly high here remember we're looking
30:26for weekly high stake profit set
30:28and then leave a little bit on
30:31and when price comes back down we can
30:32now add back on the positions we took
30:35off here
30:36and here
30:37add them here
30:38as new longs
30:40and as price rallies through to external
30:43range liquidity which is this high here
30:46entering it internal range liquidity at
30:48this bullish order block here
30:50the range again
31:02about 310 pips
31:06just to get first profit here okay
31:09and then you're going to look for an
31:11expansion to continue to take out this
31:13high here and this high here for what
31:15external range liquidity what's going to
31:17be above these highs buy stops so you're
31:19going to be looking to sell to those
31:21participants that would have an interest
31:23of buying about
31:24above these highs
31:27refining it further into a daily time
31:29frame
31:31you can see all these levels get much
31:32more refined
31:37you can see the reactions about these
31:39levels again and now because these are
31:41weekly levels we can see the reaction at
31:43them on a daily basis
31:48the levels are treated back down into
31:50here publish order block
31:52the weekly level that we transpose over
31:54here onto a daily we can see that this
31:58down candle two down candles in a row
32:01on any time frame you have to blend them
32:02together to get one full
32:05order block in this case it's two down
32:07candles as one full
32:09bullish order block
32:11so we can refine that here use the wicks
32:14and the bodies to look for that as well
32:16but we're going to focus primarily on
32:17the open on the candle you see it hits
32:20it here this is all during the election
32:22which i personally was on the sidelines
32:23it did not do any trading
32:25and then
32:26recently we had this down candle we
32:29talked about prior to this week's
32:32trading the week ending december
32:3516
32:372016 in a pre-market analysis i told you
32:40to focus on
32:42this down candle
32:44prior to
32:46this big move up i said that we would
32:47look for the mean threshold of this down
32:49candle
32:50why
32:51because i didn't think we're going to
32:52get down to this down candle what
32:53necessary because i viewed this as a run
32:55on stops which we'll talk about in the
32:57next teaching
32:59but
33:00we traded right back down into the
33:01middle point of this down candle
33:04or mean threshold and then we expected
33:06to see what happened external range
33:08liquidity above this high
33:10and then continue higher reaching into
33:12the higher time frame levels we're
33:14looking for
33:15103 103 50 and then 104 is next
33:19ultimately 105 107 still in the cards
33:21for dollar index long term so you can
33:24see
33:25how dynamic working from the monthly
33:28levels to the weekly levels refining
33:30them
33:31waiting for confirmation that there is a
33:33displacement by smart money and then
33:35simply waiting for those levels to be
33:37retraded down into and you can refine
33:39these as as
33:41small as you want by going into as low
33:43as a five minute chart if you want the
33:45ultra really really low risk
33:47entry and small stops
33:49but you're looking for the direction
33:50from the monthly the weekly and the
33:52daily to get you a directional bias and
33:54only focusing on those higher time frame
33:56directions
33:58those order blocks are the ones that you
33:59buy those order blocks also
34:03will keep you from taking focus on the
34:06bearish order blocks because while
34:07bearish order blocks
34:09or the last up candle rate for the down
34:11moves that you see in price
34:12those are good objectives to take
34:14profits at
34:16okay
34:17if you hit a bearish order block during
34:19a time of day when profit taking should
34:20take place
34:21guess what you may not get that run
34:23above an old high
34:25you may end up having to take profits at
34:27that very shorter block and then wait
34:29for asia
34:30and frankfurt and then london to retrace
34:34a little bit and then drive through and
34:36then you'll see that run on a new higher
34:38high
34:39for capturing external range liquidity
34:43so there's a lot of factors that you
34:44have to keep in mind but this teaching
34:47was to focus your attention more on only
34:50getting on the
34:51long bullish order blocks when the
34:53monthly and the weekly in the daily show
34:56you clear indications of the markets
34:57being accumulated
34:59and only using bearish order blocks okay
35:01to take profits one time of day
35:04is an impact but if time of day is not
35:07in uh in effect
35:09you don't even consider the bearish
35:10order block you might expect them to
35:12pause and consolidate there but you're
35:14looking for them
35:15to drive price through an old high to
35:17absorb external range liquidity because
35:20they're going to look to take profits at
35:21a higher price not just at an old high
35:24or inside of an old high they're going
35:26to try to build a premium in and expand
35:28that range because it's going to draw in
35:30more participation more excitement in
35:32the form of the funds and that's what
35:33this business is all about drawing
35:36allocations from large institutional
35:38traders that trade
35:39managed funds and
35:41larger
35:42position holders
35:44so with that guys i wish you good luck
35:46and good trading

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