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0:04Okay, can everybody hear my voice and
0:06see my screen?
0:10Perfect. Muhammad, how are you? Fabian,
0:13what's up?
0:16Nate, how's it going?
0:19Lee, nice to see you.
0:22All right, Shelby, what's up?
0:29Okay, nice sh. All right, let's do this
0:31tonight. You guys know the rule.
0:35Save some time. Okay, here we are. We
0:39are literally in the midpoint of the
0:4190-day cycle.
0:4445 days till July 1st. This is the
0:46halfway point, man. So, where you at?
0:48This is what it looks like. Okay, gone.
0:50We know. Wait a minute. Didn't mean to
0:52do that. I need a pen.
0:58Okay, so we're sitting right here.
1:00Today's the 17th. Gone.
1:03You should have about 45 days left from
1:06here
1:07forward. And then you're looking at July
1:091st. That's it, man. That's it. That's
1:11how time goes by, right? There's going
1:13to be June. Then I'm going to do this
1:15again in three 90 days, and it's
1:17going to be going into the fall. And
1:18then you get into the holiday season.
1:20The year's a wrap. You got to make every
1:23day count, man. It's hard, but you got
1:25to do it. All right, quick reminder. I
1:28said last week I'm gonna be off next
1:30week, no session for me on Wednesday.
1:32It's my wife's birthday. My kids get out
1:34of school. Got a lot of crap going on. I
1:35got to be around. So, uh, hope you guys
1:39understand. I'll be back the following
1:41week. No issues and we'll figure it out.
1:44All right. Quick reminder. Don't show
1:46up. Get pissed off at me. Sit here
1:47waiting for the session to start.
1:48Muhammad, you could sleep. Giving you
1:51permission.
1:53and uh we'll figure it out. All right,
1:55guys. Appreciate it. All right, we
1:57talked about the audio book, blah blah
1:58blah. All right, so want to pass out
2:00some congrats.
2:02I don't have permission to use these
2:03people's names, but they're in the
2:04group, and they might have posted. You
2:05guys might recognize it, but if you see
2:07them, give them an attab boy. Uh this
2:10was actually one of the girls in the
2:11group. She got funded. Uh 100K, and
2:14she's working on her 200 next. Very
2:16exciting stuff. I love seeing that.
2:18There's her certificate that goes along
2:19with that.
2:21And if she posted and and made it
2:23public, that's up to her. You guys can
2:26give her a shout out to her in the
2:28group. All right. And then uh another
2:31guy uh got funded.
2:35Good stuff. I've never heard of this
2:37company before. I guess you could let me
2:39know if you're in here tonight. Let me
2:40know if they're paying out, how it works
2:42out. This was back in May 8th.
2:47Good stuff, man. I love it. I feel like
2:49almost like I don't know, like a proud
2:50father. are kind of weird. I'm old
2:52enough, I guess, to be most of y'all's
2:54father. But it's exciting, man. It makes
2:57me like happy. I I tell you the guys all
2:59the time, how to bang my credit card up
3:00and get more money out of my house on
3:03the heliloc. Just different different
3:05times, man. Should be very excited to be
3:08able to have this kind of cash available
3:10to you to trade and following some
3:13rules, man. So, which reminds me,
3:17some of you guys are like going over
3:20your loss limit for the day and and
3:22doing stuff. Man, that's unacceptable.
3:24Some of you guys are getting funded and
3:26doing stupid I can't help you with
3:28that. But here's the mentality, and we
3:30all grew up with it. And maybe even I
3:33don't know if it's more so now, but it
3:34was bad in my generation, man. Like
3:36coaches getting in your face and yelling
3:37at you like, "Get back in there and
3:39fight the good fight." And and failure
3:42is not an option,
3:45you know.
3:48Failure.
3:49Hey, somebody else got funded. Said I
3:51got a funded 100K today. Can I say your
3:53name? Just put a quick wire in.
4:02Okay, cool. It's Gloria. Gloria got
4:04funded for 100K. Congratulations, man.
4:07Proud of you. But anyway, I'm talking
4:09about like some people got funded, they
4:11were doing okay, and they blew
4:12themselves up. From what I understand,
4:15there's a 7 to $10,000 draw daily, and
4:17then it resets at 5:00 p.m. or
4:19something. Okay. Well, how the hell can
4:22you go over that and blow an account?
4:25It's stupid.
4:27The the deal is that the mentality
4:29that's been ingrained in us is to keep
4:32pushing until you come out on top. And
4:34man, you need to use a three trade
4:36model, win, lose, or draw. And that
4:37number has to be under the seven or the
4:3910 or whatever the actual loss number
4:41is. And to be honest with you, you
4:43should set the number at six if it's
4:46seven and nine if it's 10. Why? Because
4:49you don't know if you're going to get
4:50slipped, not filled, and they're going
4:52to put you over. Their job is to take
4:54your fees. That's how they're making
4:55money.
4:58Okay? And then when they hand you an
4:59account, from what I understand, it's
5:01demo until you prove yourself for real.
5:03Then they secretly switch you to real
5:05money. So, they're making money on the
5:08fees. The fees are to burn you out.
5:12So, set a loss limit a thousand bucks
5:15below what it is. Especially if you're
5:17trading 10, 15, 20 lots, that's a couple
5:19of ticks, man. And you'll go over the
5:21number.
5:23Three trade model. If you got a $6,000
5:26loss limit for the day, divide that
5:28number by three. 2 * 3 is six. $2,000 is
5:32your stop level. Take the $2,000 times
5:34three. $6,000 take. That's a three R
5:37trade. Remember I talked about it last
5:39week. The stop times three is is the RV
5:42value,
5:44right? Risk versus reward. RVR, whatever
5:46the hell you want to call it. Reward
5:48versus risk. Some people say it. It's
5:50simple stuff, man.
5:55Okay. So, the idea
6:00is to figure out the numbers and make
6:04and get rid of that attitude that
6:07oh, I got to get in there and keep
6:08fighting till I win. Well, the guys that
6:11are riding me that are blowing up, keep
6:13fighting and they blow their account,
6:14man. And it's happened a lot more than
6:17I'd like to see it. I guess the attitude
6:21is right. Stay away, live another day,
6:24trade your limit, call it a day,
6:26whatever. We got to make up some kind of
6:27slogan or something. You need to write
6:29that down on a sticky note and
6:31stick it to your forehead or your upper
6:33corner of your monitor. When you when
6:35you're just under your loss limit, end
6:37it. Come back in 24 hours when it
6:40resets. And if you had a bad day, even
6:42take a day off. Wouldn't hurt. If you
6:44have a rough day Monday, Tuesday,
6:46and you're in trouble, take Wednesday
6:48off and come back Thursday, Friday. Man,
6:51it's simple and it's easy to say, but it
6:54goes against
6:56Yeah. live to trade another day, man. It
6:58goes against the mentality that were
7:00ingrained in us since kindergarten, man.
7:04You know, you got to be excellent. You
7:05got to make straight A's. You can't
7:06fail. Failing is blowing your account.
7:09Getting stopped out in this business is
7:11part of it. That's not failure. That's
7:14you made a bad choice on a trade or
7:16trade didn't go how you planned it.
7:18That's all. The market makers had
7:19something else in mind. They needed more
7:21money at a book level, at a lower level,
7:23whatever it was. That's not failing.
7:25Stopping out is not failing. You need
7:28six out of 10. 60% with two R or 3R.
7:323R makes it easier because then if you
7:35lose two trades and you hit your third,
7:37you'll be up for the day because you
7:39lost two R, right? If one R is the stop
7:42and you're trading three R, you lost two
7:44R, you hit 3 R, you'll be plus one R for
7:46the day.
7:47It's math, man. And patience and
7:50calmness. That That's part I can't teach
7:51that I could sit here and draw
7:53circles on the screen and show you the
7:54numbers all day. I can't teach you to
7:58walk away when you hit your loss limit.
8:00That's why I told you like I'd love to
8:01invent a platform that just does it for
8:03you, shut you out, but and some people
8:05say some have controls, but I know how
8:08it's supposed to go and I would love to
8:10program it, but no one's going to take
8:12that platform. No one. No one will
8:14probably even take the feed. Let me have
8:15the feed for it if I wrote it myself.
8:18All right, enough of that Let's
8:20get on to the good stuff.
8:20Congratulations, you guys. Proud to all
8:22you, Gloria. Thanks for letting me say,
8:24uh, good stuff, man. Congratulations
8:26again. I hope you make 100,000% in the
8:29next 12 months. All right, so listen.
8:32Last night, they're handing it out like
8:34candy, man. 15minute chart, 6B contract,
8:38which is the the GBPUSD equivalent to
8:41futures. I've been treated more fairly
8:44at futures, getting good spreads, small
8:46commission, and I'm happy. That's why I
8:48switched. I had a lot of problem with
8:50Forex. Some of you guys remember like
8:52back in 2014, I got kicked out of FXCM.
8:54They sent me a letter and basically told
8:55me to go screw myself. They didn't want
8:57my business and they sent me a check, my
9:00balance. So, after that, I me I bounced
9:03around, tried one out of California.
9:04Can't remember the name of it. Maybe ATC
9:06or something. They were okay, but come
9:09to find out, they were fed by FXCM. They
9:11were white label. They got rid of me.
9:14So, what are you going to do? I've had
9:17good luck with these guys. Uh there's a
9:19lot of good old established Chicago
9:21Board of Trade futures dealers, and it's
9:24been good. All right. So, anyway, here's
9:26the deal. Perfect W formation, right?
9:28You come in here, you draw the Apex Ny
9:30thing, get the top of the body, the
9:32wick, stretch this out into the future.
9:35If you notice over here, these are the
9:37profile things I talk about, but you
9:40have to understand that there's a high
9:41volume to reject this down. When it goes
9:43down and breaks back up, the high volume
9:45stayed roughly in the same area. So, I
9:48know this is how I learned how to draw
9:49the boxes, understanding that I'm
9:51encapsulating the high volume nodes,
9:53which is the point of control, right?
9:55Time at price. Time at price. So, I take
9:59that and I take these two PC's and I
10:02would draw a line. I want the one that's
10:04going to be closer to price action to go
10:06limit because they may not come back
10:09down to this one. If I was to draw a
10:11subzone in here, I would take this point
10:13of control and this point of control and
10:14go like this and that would be another
10:17micro zone right out into the future.
10:21What I want to do is I want to frontr
10:23run this by a tick or two because they
10:25don't really screw with the spreads and
10:27futures. I can go one tick right here
10:31and I get filled on the taper.
10:36And that's it. I got the trade. This is
10:38crazy to me. Like you literally take
10:40your fibs, right? And this is the only
10:42thing I use fibs for, Muhammad. This is
10:44it. This is all I use fibs for. The rest
10:46is eyeballs. All right. I take this
10:49swing low to this swing high and I use
10:52the extension. Right. I pull back here,
10:56get this swing low, and I have my top
10:57side projection. Once I'm in the trade,
10:59things are moving along. Stops to break
11:01even. Now I want to know what the upside
11:03is.
11:05Okay, 63. If you're taking a fixed
11:08number 50 or 40 and this is greater than
11:10that number, then just let your
11:13let your numbers play out. Let your let
11:16your target hit. Okay, I want you to
11:19notice how price went up to the AR
11:20number, the moving average, and the day
11:22open. You could have shorted this down
11:24into the lows, but I felt like this W
11:27formation gave me high side bias. and
11:29you don't know if you're going to get
11:30the retracement down. How far into the
11:31lows? You can bet it's either going to
11:33turn here or maybe somewhere a little
11:35deeper into the lows. So, you go upside
11:38bias on this, man. I want you to notice
11:40something crazy, right? You got moving
11:42averages pointing down. You got
11:44everywhere. You got blue trace. You got
11:45all this crap. All my favorite stuff.
11:48But at the end of the day, if you're
11:50getting the counts correct and you're
11:51seeing things clearly, the pattern
11:54anchor low, zone flip high trumps
11:58everything, man. That's the bottom line.
12:01You like to have stuff to lean on and
12:02confluence. Yes, absolutely. Give you
12:04more confidence in the trade. But you
12:06get a W anchor coming out of session. I
12:08want you to notice something, too. Let
12:10me clear this off real quick. Sorry.
12:14Okay, this trade went off in session.
12:18This part of the trade went off in
12:19session.
12:21Do you understand?
12:23I always talk about this. People are
12:25getting smoked in here.
12:28You got to wait for in session, man. So,
12:30if you're getting started, you're trying
12:32to nail down your hours. You need to go
12:35from here,
12:37right? Show up in the middle of the box,
12:39do a couple of checks, wait for them to
12:41hit their hit their stride, hit run the
12:43stops, make the formation, trap short,
12:46right? Failed sellers auction. They
12:48don't take out the swing low. I like
12:50what I see. There was a subtrade in
12:52here,
12:55right? A hammer flips over the PC.
12:58Another hammer. Go in right there. Or go
13:00limit. Excuse me. Go limit there. And
13:03you got about a 35 pip run in that.
13:05Maybe could have squeezed out your 25 or
13:0730 if that's what you're going for. No
13:09worries. It's a good trade. Then you're
13:11off to bed, right? Then look over here.
13:13In session, the trade goes off in
13:15session. The W formation's in session.
13:18There was a trade here. First leg pull
13:20back. You would have got maybe a
13:22measured move from here to here and you
13:24would have tried to get 30 out of there.
13:26There's two moves in there. But this is
13:28the big play. This is the 15minute play.
13:30You could drop down to the five minute,
13:32maybe get a smaller W to work off of.
13:34That's okay, too.
13:37But you want to be using this pin,
13:39right? This pin gives me the same exact
13:42zone that the point of controls give me.
13:44You see that? Look, first rejection
13:48gives me where the points of control
13:49are. Slide this over here like
13:52that. That's the same exact I drew
13:55off of some ridiculous indicator that's
13:57hard to get. You got to have uh tick
13:59feed and with data. It's not necessary.
14:04That's where I came up with this stuff.
14:05Right. And I I forgot to mention, I've
14:07been talking about these bookmap stuff
14:09and I got the videos tonight. I'm
14:10excited to get to that stuff. If it
14:12starts getting too late and I'm blabbing
14:14too much, I'm going to skip all the
14:15and go do those videos because I've been
14:17promising you that for a couple
14:18weeks. Hold on. Let me get a drink.
14:23All right, man. Good stuff. Exciting
14:26stuff. Love it. And you notice how price
14:28broke above the open, tapped the open,
14:30and basically hugged right back at the
14:31open. So, what does that mean? In
14:3324-hour currency cycle, price opened and
14:35closed exactly in the same spot. There
14:37was no change. You either got rich or
14:39got busted, right? Bottom line.
14:44You can't make this up, man. It's there
14:46every single week. I like to say every
14:48single day, but you don't always get
14:49clean W's and you know the A-frame, how
14:52to handle that. We talk about that
14:53stuff. And if you're unsure, I'll cover
14:55it again in a couple weeks. Send me an
14:56email. Say, "I don't know what the hell
14:58you're talking about." And then if you
15:00don't know what the hell I'm talking
15:01about, I'll do it again.
15:03All right. So, I got some student
15:05submissions excited about this stuff.
15:07People basically said, "Critique my
15:09shit." and they're in for it. Okay, so
15:13look at this chart in like 30 seconds.
15:15Tell me what the hell's going on with
15:16this dude.
15:18Okay, you see his strings in here,
15:20right? He's got a trade in here that
15:22worked out. Okay, he's got this one.
15:29Tell me what you guys think. Tell me
15:31what could have been done better.
15:41Yeah, that's anxiousness getting in too
15:43early, man. I agree. That's exactly the
15:45problem. So,
15:47listen,
15:49if you don't get a pullback below or
15:51above the ketchup, then you need to try
15:52to deal at the bottom side. Okay, first
15:55of all, we know that you're going to get
15:56a bounce off the 200 EMA. This is a
15:5915-minute chart, 200 EMA, right? What's
16:01the bias for the day? Upside. Okay, we
16:04can go with that, right? You get
16:06straight away coming right out of the
16:07session. Then you draw your lines right
16:10here, here, and here. What do you need
16:12to be a stop hunt high drop?
16:15You need an M formation that comes below
16:17this, hits the the 50 EMA, and gives you
16:20sellside first target if there's enough
16:22money in there to make any money,
16:26and then somewhere below toward heading
16:28towards the lows. Right, this is
16:29yesterday's low. Then you would get my
16:31blue tracer trade that I love into the
16:33lows.
16:35Okay, that's not the case. You had
16:37everything showing straightaway trade.
16:38No visible stop hunt, right? Coming off
16:41of a low side anchor.
16:46Price breaks above. He gets the hook
16:48back. Not a bad entry. I would have
16:50liked to see. This is the actual trade.
16:53All right, let me erase so we can be
16:54crystal clear. This is the actual trade
16:56that I like here. Okay,
17:00stop hunt high, right? You're trading
17:02above Asian numbers. You expect stop
17:04hunt high or stop hunt low. Draw your
17:06line like this. There's your first
17:07rejection pin. Refine the entry right
17:10there. You're getting in on this bar
17:12somewhere. Midbar right there. That's
17:14the perfect pull with the stop right
17:15there. Okay. He got in a little bit
17:17better or a little bit later. That's
17:19okay. And he went limit. Perfect. Good
17:21target right here using the 200 EMA.
17:23Perfect. Because you don't know what
17:25it's going to do. Okay. He was excited.
17:28He had some money in the bank and he
17:30scratched out and messed himself up. So,
17:32here's what he needed to do. It's laying
17:34right on the freaking moving average.
17:36Look what it's doing. Don't you see all
17:38that bottom pin rejection? They're
17:40trying for lower prices, but the dealers
17:42are not having it. Trying for lower
17:44prices. Dealer are not having it. Right?
17:46So, what you need to do is box in the
17:49pins. Can't say this enough. Box in the
17:52pins, man. Okay? Box in the pins.
17:57There's your box, right? What do you got
17:59here? Now you're in session.
18:02Now you're in session.
18:05Okay. Now you get stop hunt low
18:07rejection
18:09move up higher. When they break this
18:11right here, right? When they take out
18:13this level, the dealers want higher
18:15price. Try to deal from the low side.
18:17This pin, this pin, and I would even
18:19been happy if I saw that,
18:23right? You needed something to give you
18:25some context. This apex nater thing took
18:28out the swing low, swing high, higher
18:31dealers want higher price. He had a good
18:33pull. He just too conservative. Whatever
18:35the reason was.
18:39All right. Hope that makes sense. It's
18:42it becomes down to patience, man. I've
18:43been doing this too long and the rookies
18:45and the younger guys are too impatient.
18:47You got to let this stuff play out. The
18:49greatest thing you could do is learn to
18:52use limit orders. And I'm going to tell
18:53you why. You either get filled at the
18:56right spot or you don't. And that's
18:59okay, man. You'll figure it out. If you
19:01start refining these entries, right? You
19:03got this first pin rejection right here.
19:05Literally on the on the 200. You can't
19:08ask for a better area than that. There's
19:09a body. There's a body. Body's up high
19:11here. Body down low here. Let's just
19:13take an aggregate roughly. That was an
19:15awful aggregate, but you guys get the
19:16message. All right. You go buy limit
19:19right here in the box. front of the box
19:21because it's thin. Box less than 10
19:23pips. Front run the box. Very top line.
19:26The box is a little greater. Try to find
19:28refine the entry on another pin. Okay,
19:31simple. 10 pip or less box. Front run
19:34the box.
19:36You get he would have got filled here on
19:37a front run. Stop could have been right
19:40there and he would have had that nice
19:41trade to end the day. That's it. And I'm
19:44not picking on you, brother. Nothing but
19:47love. Especially for sending it and
19:48having the the guts to let me look at
19:50it. Okay. Same thing. What happened
19:52here, man?
19:54Same thing.
20:00Tell me, Muhammad, what happened here?
20:08Okay.
20:09If you got a moving average and a blue
20:11tracer together, this becomes your zone.
20:16So he ain't wrong here, right? This is
20:18good. Okay, this is where your zone is.
20:20This is a pretty damn good end where I
20:22come from.
20:24All right, how do you handle this? We
20:25want to deal topside pins. Okay, well
20:28the freaking 4hour demar demarcation
20:30line is sitting right there. You're
20:32trading below the 4 hour. This is a 4
20:34hour high from somewhere else in the
20:36world. When I say somewhere else in the
20:38world, I mean over here, left side.
20:41Okay. So now what's the best way to
20:44trade this? There's one or two ways he
20:47could tra have traded this better. First
20:49of all, he got a decent pull,
20:53right? This is a decent pull. I don't
20:55like it because it's on the no-go side.
20:57Remember I talk about go no-go. He's on
20:59the no-go side. He don't have anything
21:02here. That is not that's not a right.
21:05What happened? If you think about this,
21:06the parameters are set. High swing here,
21:09low swing here. Right? You don't know.
21:11He's dealing on something that's not the
21:13low swing yet. And he still is above the
21:16blue tracer. You know that they break
21:18out of the blue tracer and do that.
21:19That's my favorite trade on the freaking
21:21planet. But he doesn't know they come
21:23back in and stay inside the blue tracer
21:25for a couple of bars until after he's
21:27already in. So, he screwed himself up.
21:29This broke down at this point right
21:31here. This is a 50/50 proposition. You
21:33don't have a trade here, man.
21:36Right. When they close again inside the
21:38tracer, now you're on to something. This
21:40would have scared me.
21:43So, you split the M in half and you're
21:45on the go side. Okay, so now how do you
21:48handle the go side?
21:51Okay, he got in. I don't like to deal
21:54off the M anymore. I like to deal in
21:56certainties now. Okay, so I would have
21:59drew the blue tracer as the top
22:02and I would have took the apex nater
22:05thing and in this case it's the nater. I
22:07would have put the box out into the
22:08future and I would have went sell limit
22:10in here and I would have got the perfect
22:13fill US in session
22:16and it would have been good. Right? So
22:17here's what happened. He got a good
22:18fill, stopped himself out too early,
22:20screwed up the trade and then he had he
22:22had to get it back. What the hell is
22:24here? There's nothing here. He's coming
22:26into the end of the session and look
22:28what they do. He's got a couple of
22:30positions on. He took a few stabs at it.
22:32They hit the stops high, hit the stops
22:34low all the way down here and they wiped
22:36them out. So now instead of having a
22:38good trade that if he would have just
22:40did a little bit better management, he
22:42would have made his money here end of
22:43session,
22:46right? If he would have stayed right on
22:47the tracer short and left this better
22:50stop management, he would have been in a
22:51good place, man. Instead, these guys
22:54smoked them and I hate that. Hate that
22:59Okay, so apex nater draw the box refine
23:02the entry maybe off of here right off of
23:04these bodies on aggregate go limit right
23:06here stop above the tracer couple of
23:09pips to breathe he would have been in a
23:10good place and he would have got these
23:12two within two or three bars he would
23:14have probably had limit so 60 pip box 30
23:17pips halfway he could have got probably
23:1940 out of here
23:21right he got twothirds of the box
23:23available to him
23:25and he had a limit here too and he would
23:27have been Right.
23:29It's not from this trade. His limit was
23:31over here. But still, it's just
23:33patience, man. And how do you I can't
23:35teach you guys that. How do I teach
23:37somebody to be patient?
23:39I could sit here and complain about it
23:41all day.
23:43He had everything he needed right here.
23:45He had a sell zone. This was the perfect
23:47sell zone. Why is it a sell zone?
23:49Because price is coming from below. If
23:50they would have got above this, then
23:52it's higher price. That's the buy zone.
23:55top of the blueberry or some zone
23:56somewhere in this area. Depending on how
23:59they're showing you the configuration of
24:00bars, right? This is look, this is
24:03consolidation right here. This is the
24:05same thing. They never retested it. He
24:07would had higher price, they retested
24:09lower price. That's what you have to do.
24:11Bracket these areas on the chart,
24:12consolidation, and see how they handle
24:15it. I told you the whole business could
24:17be summed up in this little circle right
24:19here. But it's just understanding what
24:21you're seeing, right? We want to be in
24:23line with the bigger trend or understand
24:25that this is possibly a reversal zone.
24:27But they ran the stops low, trapped, and
24:29then came all the way back, triggered
24:31everybody out above the high, and then
24:33they handled their business and went
24:34back into the range.
24:36This is basically a chop day, right?
24:38This one didn't open where it closed. It
24:40closed lower. So, this would be a weaker
24:42close on the daily,
24:45right? Closed. If you draw a daily
24:46candle, I'm losing it with the ink
24:48tonight. Sorry. Okay. If you would have
24:50drew a daily candle of this entire
24:52movement, right? This would have been
24:53the high. This would have been the low.
24:55Daily candle looks like this, right?
24:58Maybe rejected off the low, closed over
25:00there. Would have been some like
25:01this. That's the daily. Okay. Well,
25:03we're closed down here. It's a red daily
25:05candle. So, we know that this is a
25:08weaker close. Possibly lower price
25:10tomorrow.
25:12That's it.
25:14It's all there, man. It's all there. All
25:17right.
25:18This one. This one freaks me out. All
25:20right, critique this for me. Go. 30
25:22seconds. I'm going to take a sip. Just
25:23tell me what you got.
25:39Okay. Not quick enough. Come on, man.
25:41All right. Okay. Look. You got moving
25:44averages. You got a predetermined head
25:47and shoulders, right? He drew this
25:50I didn't draw it. Okay. He's got the
25:52blue tracer break above. He had upside
25:56bias from everything. And this freaking
25:58guy took a short right there.
26:01Jesus Christ. I'm sorry. I don't
26:04understand. Did any you guys understand
26:05that he drew the zone? The zone was
26:07good. He could have refined the entry
26:09off the low pins first leg. He could
26:11have went limit here. This isn't bad,
26:13obviously.
26:15Damn straight. You got a late entry and
26:17you got the wrong entry. Sorry, brother.
26:19I love you. I don't know what the hell's
26:21going on here, man.
26:24But anybody anything to say?
26:31I don't know, man. I would say yeah, he
26:34saw a 12 trade short, but look what he
26:36drew. He knew a head and shoulders is an
26:39absolute reversal long in this instance.
26:41And if it's over here like this, it's a
26:44reversal short.
26:47This is probably GBP. I don't even have
26:48to look at it.
26:51This is the pattern they make. This is
26:52like GBP's signature pattern. I could go
26:55back in the charts, find this
26:57everywhere in GBP. If you just hung
26:59around and traded this the right way,
27:01you're in the plan, right? He got this
27:03Apex Navy box pretty great, right? Maybe
27:06I would have took the tops of these
27:07bodies and expanded the zone a little
27:09bit like that. And then I would have
27:10tried to refine it here. Erase it out.
27:12See what I'm talking about?
27:15All right. So, he had this high swing
27:17tops of these bodies right here, which
27:18would be basically right in here, right?
27:21So, he could have went like this,
27:23expanded his own, and that would have
27:24caught the entire range, right? Because
27:28they always repeat these areas. And this
27:30is not a very big wide box. Okay? Box is
27:32less than 10, front run the box. Box is
27:34greater. Try to refine the entry off the
27:37low swings, right? Off the pins. this
27:39right here. Maybe catch some of those
27:42pins like that. Okay. And front run the
27:44inside box. That gives you a damn near
27:46precise entry. Depending on your lot
27:47size, you may or may not got filled
27:49because of uh tapering on the candle.
27:52So, if you're trading 20 lots, you go in
27:54pair of tens or you go five, five, five,
27:58and five on the ticks. You get your 20
28:00off on the spike into the low. They fill
28:02you at each cell. Remember the cells?
28:04They fill you with each cell on the
28:06spike down, right? Instead of trying to
28:09get 20 off in one cell, you might get
28:11rejected or slipped. But if you get 555,
28:14you have an aggregate entry two pips
28:16lower. You understand? So you eat into
28:18the spread a little bit because what'll
28:21happen is you'll go here, here, here,
28:22and here. And your aggregate comes
28:24halfway between the pairs of 10.
28:28All right. So anyway, for what it's
28:29worth,
28:32it I know happens. I know that's
28:33life, but this is crazy to me. He did
28:36everything right on the analysis and he
28:38executed incorrectly.
28:40That's it. It's all I could say. And if
28:43you're here, I'm sorry. I love you, man.
28:46But I and I appreciate you sending this
28:47to me.
28:50All right. What else we got? Okay.
28:52Couple of flash cards someone sent.
28:56I actually think I'm going to skip all
28:58this and come back to it next week and
29:00because there's some good trades in
29:01here, but I want to cover the videos,
29:02man. I got about 15 minutes left and I
29:05want to talk about these. Okay. So,
29:09here's what I'm going to do. I got to
29:10get some Diet Coke going. Here's what
29:11I'm going to do. I'm just going to let
29:13it play, then we'll go back over it and
29:15talk about it. But this video is titled
29:17Slippage, and I want you to see what
29:18that looks like and see if you can spot
29:20it for me. All right.
29:23Okay. I'm going to shut my mouth and run
29:25it if I can find the play button on
29:27here.
29:29All right. I cannot. What the hell?
29:33No. Don't tell me it's not going to
29:34work.
29:36Maybe I got to get out of here and get a
29:37cursor. I'm using the ink. I'm using the
29:39ink right now.
29:46All right. Hang on a second, man. It
29:47worked in It worked when I tried it and
29:49now it's not working. I don't even know
29:50what to do. Let's see.
30:03Well, that's no good.
30:06Okay.
30:18Okay. Let's see. All right. There we go.
30:20I had to get out of ink. I'm sorry.
30:21There we go. Okay.
30:24All right. Just watch the slide. We'll
30:25talk about it. I'm going to shut up.
30:27Bye.
33:19All right. So, this was the non-farm
33:23payroll equivalent in crude oil, which
33:26is called the inventory release. It's
33:27every Wednesday. They release the the
33:30amount of oil in the ground and above
33:31ground and what's coming in. It's
33:33basically crude oil on hand, right? It
33:36used to be this was this video is a
33:37little bit older. It was when it was 50
33:38bucks a barrel roughly.
33:40Okay, this is the old school book map
33:43that I actually learned on and I really
33:45liked it. So, what you have here is
33:48these white lines are the liquidity
33:50that's available in the book. Black is
33:52nobody's home, man. There's no orders in
33:54the book.
33:56Okay? So, what they do is they roll in
33:59and they they press price on both sides,
34:01right? Pressing. They keep it flat and
34:04they start letting it creep up a little
34:05bit to get it to where they wanted it.
34:08They let price, they put some liquidity
34:09here. It pulled up to it. There's black
34:11around it. Some orders got executed on
34:13the way. Then it positioned itself right
34:15in the middle of the blocks of
34:17liquidity. And then they pulled all the
34:19other stuff out of the book except for
34:20retail traders that are in there. Okay,
34:23everybody with me so far? Quick Y.
34:26Okay. Right at the release,
34:30they withdrew all the liquidity out of
34:32the book. It just stopped dead. Notice
34:34how the book is completely black.
34:37When I play it forward a little bit, I'm
34:39going to back it up and play it some
34:40more. I want you to notice these
34:41numbers. This is the actual orders in
34:44the book. I want you to notice how slim
34:46they get. I also want to know if you
34:48noticed, and I'll back up to it. Let me
34:50see if I can back up to it.
34:57Okay, look how thin these orders are
34:59now. It's 949. These are retailers, man.
35:02Or idiots, where I like to call them
35:05trying to get filled. I want you to
35:06notice like these bubbles are actually
35:08executed orders in the book. I want you
35:10to notice the bubble slipped all the way
35:12down to here, right? Somebody might have
35:15clicked a sell up here and they got
35:17filled at the worst possible spot. What
35:19happened was the bubbles, if you notice
35:21the green ones and stuff, they're
35:23sliding on the screen through the price
35:24points because nobody's picking up the
35:27order. You have retail traders can't
35:30pick up your order unless they match it,
35:32but the dealers want those orders. So,
35:34they fill them at the worst possible
35:36spot where there's a higher number of
35:38liquidity in the book. That's why news
35:40trading doesn't work because you don't
35:43know who's going to pick up what because
35:45you can't see this crap.
35:50So, this where's this part at where the
35:52where they slip the bubbles. I love
35:54that. That's what the slippage is. I
35:56think it's right in here. Let's see.
36:02Okay, right there. Do you see that? Damn
36:04it. I tried to stop it and it bumped to
36:06the end.
36:12Do you see? I know. You saw it. You saw
36:14the red bubble that slid all the way
36:16down here. Somebody sold and it slid all
36:18the way down to the next available
36:20dealer order and he filled it down there
36:24and they paid the price for that because
36:26now they're in the hole. If they didn't
36:27get stopped out, they're in the hole
36:28right there. They slipped it. And then
36:31look at these green ones slipping.
36:32People are buying and they're slipping
36:34at the next available seller. Look how
36:36thin these are. These thinned out in the
36:38profile, man.
36:42It's just crazy stuff to be able to see
36:44it. I love it.
36:46But that's why when people go, I don't
36:48know, I pulled the trigger at 62 and I
36:50got filled at 22 or 28.
36:54And this is a decent move for crude oil.
36:56This is like 75 cents. But if you notice
36:58what happens at the end, it ended up
37:00exactly where it started. There was
37:01little net change in crude oil price,
37:05right? But they beat the out of
37:06everybody.
37:10It comes to rest right in here. And it
37:12started at 4958.
37:15It spiked up to around 7576, right?
37:18Because you got no nothing traded at 76.
37:21A buy order at 75. That guy got trapped.
37:24Draw a line right across here. Basically
37:26the same 56. This went off around 60
37:294cent difference. And it traded all the
37:31way down the quarters, right? 26 right
37:34between the 26 25. So with the spread 25
37:38right in there.
37:40It's crazy stuff, man. You gotta love
37:42it. Okay, another one.
37:49I'll just be quiet and then we'll talk
37:50about it.
37:57Actually, let me preempt it. This is the
37:59new version of the book that's not
38:00white, and it's the same thing. The
38:02deeper, darker orange or dark reds,
38:05that's heavy orders in the book. The
38:06white is weaker. Blue, obviously, less
38:09yellow. and it emerges into the darker
38:11deep colors. This is a very high order
38:13up here. the next uh gradient down.
38:18I think this was euro when it was a$112.
38:2112.
39:39Look at the numbers in the right margin.
39:41Nothing. Empty.
40:27Sorry about that. I think I made that
40:28off my phone, man. I know it bounced
40:29around a lot, but look, this is where
40:31the Pac-Man idea came from, right?
40:33That's a Pac-Man. So, what happens is
40:36you got retail traders buying high. When
40:38they see it spike up, they get excited,
40:39think it's going to the moon, they buy
40:41and the market makers just scoop that up
40:44like a Pac-Man. They bite those buy
40:45orders and sell the selling pressure all
40:48the way down. Right? This was even. They
40:50absorbed this level of liquidity. Right?
40:52See how that was orange and it turned to
40:54nothing.
40:56Orange gone. Spiked right through it and
40:58took it.
41:00Right? This means heavy liquidity in the
41:02book. Medium. They used the medium
41:04volume to control the price.
41:08Right. So again, medium volume because
41:10there's not a lot of people home.
41:12Doesn't take a lot of money to push the
41:13the bubbles around when no one's in.
41:16They could they could eat up 218 3 and
41:18two. This is hole in the book. Hole in
41:20the book. They just push it right down.
41:21And whoever retailer is clicking on this
41:23right or wrong, he he's either
41:26winning or he's losing right now. But
41:28some people got jammed up up here. They
41:29had bunch of liquidity up here and they
41:31packed it.
41:37Right? So, they just pull the liquidity
41:40out, price skyrockets, and then they put
41:42it back in and it just halts price. And
41:45if they put enough, right? If there's a
41:47100 orders, they put 200, it just forces
41:49it down, absorbs it. Anybody else
41:51clicking in, and they just drop it,
41:53bounces off the low swing here, comes
41:56all the way back and basically ends up
41:58not too much different than where it
41:59started.
42:02It's fascinating stuff. By the way, this
42:04is the 50 EMA and people might have
42:06taken that for a 50 bounce trade and
42:08they would have been long. They would
42:09have been in a good spot, but it would
42:11have been quick, man. You don't take a
42:13position right before crude oil
42:14inventories.
42:16People do it. It's not the best idea,
42:19man.
42:21All right, I'm going to skip ahead off
42:23of this video. I'll do it next week, but
42:24I want to talk about this. This is
42:27basically an M formation. So
42:30this is where I came up with
42:32understanding the boxes at next level,
42:34man. We're drawing these boxes and
42:36understanding what's going on. This is
42:38how I came up with it because this is
42:40the original book and this is where I
42:41started drawing boxes. If you could see
42:44the liquidity draws that for you.
42:47So it started making sense to me that
42:49drawing the boxes on the swings and
42:51understanding where the confirmed buyer
42:53auction and seller auction is confirmed
42:56into the next level is why I stopped
42:58taking unprotected M's and unprotected
43:01W's.
43:03Okay, so let's talk about this. All
43:04right, so what do you have? Asian range
43:06consolidation. They break out to form an
43:08M formation.
43:12Okay, so here's the deal. You take the
43:15Asian range, right? They press it,
43:17right? You take you take these two
43:19boxes. I need a pen. Sorry. All right.
43:22This is going to be the last chart
43:23because it's a quarter till already. And
43:24I I'll pick this up next week. So, you
43:26literally just take this like this and
43:28draw it out into the future, right? And
43:31the low swing over here. So, this would
43:32basically be your Asian range. Then they
43:35break out and start the M formation.
43:38Okay. So, now I have my M. All this
43:40liquidity is in the book. This would be
43:41the high swing off of these two boxes of
43:43liquidity. And I expect price to come
43:45back into that. When it doesn't take it
43:48out, this is a failed buyer auction,
43:51right? They can't auction price higher.
43:53It failed. Price, you get your turn bar.
43:55Price turns down. Now, I got the high
43:57swing and I got the low swing. So, if
44:00you notice, I could take these levels
44:02from here and I could extend them out
44:04into the future where liquidity was in
44:06the book where it was previously
44:07pressing price. That's equivalent to
44:10drawing this off of here.
44:13So, if you look at this, let me erase.
44:20If you look at this right here, price
44:22went in. See that little tiny black spot
44:24right there? That got wicked into there
44:26by the spread. Okay? So, that's the low
44:29swing. So, if there's a wick right here,
44:31you're going to take that, you're going
44:32to aggregate the bodies. You're taking
44:34this previous liquidity from the top and
44:36you're going to draw
44:38a box right here. Right? That's where I
44:40came up with the box. When you look at
44:42it in candlesticks where they make these
44:44turn bars, right? I could do the same
44:45thing here.
44:48I could take the high swing off of the
44:50boxes and understand that I have the two
44:52areas of interest right now where I want
44:54to deal from.
44:57Okay. If price comes down here, it's got
45:00to get below the last place. It's always
45:03the last and current place that the
45:05dealers tried to make a move, right? The
45:08dealers tried to make a buy run. They
45:10got capped on this heavy liquidity,
45:12right? I call these insurance. They put
45:15in some liquidity and if it slips
45:17through, they got this and this to make
45:19sure that their level is not given up.
45:21They don't give a about five or 10
45:23ticks in the scheme of things for them.
45:26They care about getting the turn bars in
45:27the general area, but they rarely fail
45:29when they got this kind of power,
45:32right? This is a collective of banks
45:34agreeing that crude oil or whatever it
45:36is, GBP can't be any higher than this
45:38swing high today.
45:40You don't think they know mathematic
45:43computated formulas where the high of
45:44the day and low of the day going to be
45:45roughly come in would give or take some
45:48plus or minus 10 variance right for
45:50slippage and for unaccounted order fills
45:53that come in.
45:55Okay. So the high swing they push price
45:58down they push it back up. This is the
46:01last place the sellers tried to take the
46:03book out and couldn't do it. This is the
46:05last place the buyers tried to take the
46:06book out and couldn't do it. So you got
46:08failed buyers auction, failed sellers
46:10auction.
46:12So what has to happen if this is a good
46:14M formation? You're going to go here and
46:16here, sell out through there. That's
46:19your secondary entry after the M
46:21formation. This is a confirmed M. Now,
46:23why? Because they the sellers finally
46:25got control of the last place they
46:27tried. If this does this, and what it
46:30would really do would break above the
46:31high, come back into here, and go
46:33higher. What does this mean? that the
46:36buyers finally got the book back from
46:38the last place the sellers took them
46:40took them out. That's how this box
46:42theory came to be. I told you the story
46:44about this thing. I got this in 2014
46:46from another student and I sat with this
46:48thing and could not put my finger on it.
46:50It's impossible to read. I mean, you see
46:52all those bubbles bouncing around, all
46:53this going on. It wasn't until
46:56after sitting there for like I don't
46:57know a week or two that at the end of
46:59the day I came in and I squished the
47:01pages together and I could see all the
47:03lines and boxes where they got pulled
47:05and turned black and they got put back
47:07in the book and I started realizing okay
47:10I see this M formation crystal clear
47:12what happened here the liquidity blocked
47:14the high swing they had a failed auction
47:17back to the high there's the apex natery
47:19thing and you could look at the the the
47:21previous area of liquidity where they
47:24actually This extended the box right
47:25here. So they had a place here where
47:28they tried, they failed, they got pushed
47:30up, they failed. Now if they get below
47:33it, I got something. Then it goes down
47:35to the next liquidity targets. Then you
47:38have to see right in your mind. You
47:41should easily see this. You should see,
47:43okay, if price breaks here, right, let's
47:46draw a box here. And it's a rough draft.
47:48I'm running out of time, right? It
47:50should do this. And it should do that
47:52and fall through the black areas. No
47:54liquidity, nobody home. Easily glide
47:56through the the black areas on the book.
47:58Then it would do this. This is mildly
48:00deep. But maybe then you got your three
48:03pushes and you get your low. Then we
48:05should see something like this. Maybe
48:07back the other way. If this is the
48:08reversal.
48:10So now you see there was liquidity here
48:12and liquidity here. You got this over
48:13here. You could take this out into the
48:15future and know that you got a little
48:17area right here. Whatever price action
48:19did, if we rejected before, then it went
48:21up and tried and it would do some
48:23like that again.
48:27I know this is hard to see and
48:29translate, but this is the
48:30understanding. I want you to understand
48:32where the boxes came from and why
48:33they're so powerful. I didn't just pull
48:35these numbers out of my ass and start
48:36drawing boxes on a chart. It's based on
48:38what the dealers are doing behind the
48:40scenes that you can't see. I've always
48:42said this since the beginning I started
48:43teaching. You got to look at this stuff
48:45from behind the screen. You're here on
48:47the screen. Let me draw you a little
48:48hanging out right sitting in front of
48:50your computer. You got to think about
48:52the feed that's coming in and that's
48:54this stuff right here. That's the
48:56backside feed. You need to understand
48:58what's going on behind there to be able
49:00to execute on the front side of that
49:01screen correctly.
49:03And when you understand where this box
49:05theory came from and understand what
49:07I've been talking about for the last
49:08couple of years and try to increase your
49:11odds of not taking a failed M or a
49:13failed W, I still get stuff. Steve, I
49:16took the W's and got busted. Okay. Where
49:18did you take the W at?
49:21Okay. Well, you possibly took it down in
49:23here before you had confirmation on the
49:24Apex Nater. You even need a close above
49:27this. You can go here, but you're
49:29usually going to get a hook back sucked
49:30back into the book because it'll push
49:32through where there's black and then it
49:34always sucks back to liquidity. So, if I
49:36had a W like apex right there, it would
49:39go like this. it would break it, eat up
49:41this liquidity, would turn black, they'd
49:43come back to this level here and
49:44possibly give you a secondary entry.
49:46That's this chart from the very
49:48beginning of time today.
49:51That's how this comes from.
49:55This I got to erase my ink so you can
49:56see it. Last chart I'm going to talk
49:57about and it's over. All right, that's
49:59where this comes from, right? This was
50:02picture the now picture all this crap in
50:04the book, right? Okay, they broke it.
50:06They probably hit some liquidity here.
50:08Wasn't absorbed yet. turned it,
50:11tried again, got a little bit higher,
50:14came back, spiked in here. So, this is
50:17your primary thing and this is your one,
50:20two refined entry because it's off of
50:22here. Yes, some people would have got in
50:24here thinking they missed it and they
50:25would have chased it up here and they
50:26would have been sorry. It always comes
50:28back to the heaviest liquidity, time at
50:31price. Look,
50:35that's liquidity. Rejected the first
50:37try, they hit it again.
50:39So, what they did is they basically ran
50:40the stops off of these guys by that
50:42candle.
50:44All right, see you guys next week. Love
50:45you. Hope you enjoyed it.
50:47Congratulations everybody.
50:50I will see you guys next week. No, I
50:52will not see you next week. No class
50:54next week. All right. Good night.
50:57Appreciate you.

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