YouTube transcript (X5pQjfkAUCI) — Transcript

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1. 0:33welcome back folks this is teaching 3.4
2. 0:36of eight
3. 0:39of december 2016 ict mentorships content
4. 0:43we're dealing specifically with the
5. 0:45reinforcing order block theory and
6. 0:47reclaimed blocks
7. 0:50okay we'll be looking at the market
8. 0:51maker buy model first
9. 0:53and what this essentially is is when the
10. 0:55market drops down and has a price swing
11. 0:58lower
12. 0:59reaching into a higher time frame or
13. 1:01immediate term support
14. 1:03level
15. 1:04and that support level can come in the
16. 1:05way of an old high it can come in a way
17. 1:06of old low it could be a bullet shoulder
18. 1:09block it could
19. 1:10it could be a filled
20. 1:13void or closing in on a fair value gap
21. 1:17any one of those things could lend well
22. 1:18to a price support level
23. 1:21but the idea is we're going to be
24. 1:23anticipating that market move lower and
25. 1:26you can anticipate it and watch it go
26. 1:28lower and be short or if you look at it
27. 1:31and the move has already transpired if
28. 1:33you notice you have seen
29. 1:34the decline down to support level we can
30. 1:37start looking at specific levels to
31. 1:39watch for reclaimed order blocks
32. 1:42first we have to understand the cell
33. 1:44side of the curve on a market maker by
34. 1:46model
35. 1:48that's the drop down
36. 1:50into that support level before we see
37. 1:53the move higher
38. 1:54the market makers are going to be
39. 1:56scaling in early so they're going to
40. 1:57have areas at which they start buying
41. 1:59early because their positions are much
42. 2:01larger than us as a retail trader
43. 2:03they require a great deal of movement
44. 2:06and time to price in their orders
45. 2:08because they can't facilitate their
46. 2:09entire order on one transaction one
47. 2:12specific move from a level
48. 2:14they have to scale that position in and
49. 2:17that's in the form of hedging
50. 2:21as the price drops down into the lower
51. 2:24level support
52. 2:26they're going to be building in more
53. 2:28positions
54. 2:29and you'll see as you
55. 2:31watch price go lower and lower they'll
56. 2:33be small little transactions that cause
57. 2:35the market to create short term little
58. 2:37lows in the market
59. 2:39so as the market moves lower
60. 2:42every time we see a small little bounce
61. 2:44in price action
62. 2:45that is a minor displacement showing
63. 2:48that there was new accumulation being
64. 2:50taken into the marketplace in other
65. 2:52words the smart money is actually
66. 2:54accumulating new long positions
67. 2:57you have to have the understanding that
68. 2:58that lower
69. 3:00level support that it's reaching for is
70. 3:03going to be the ultimate price level
71. 3:04it's most likely going to have its
72. 3:07impulse price swing away from
73. 3:09prior to that low being formed like i
74. 3:12said there's going to be
75. 3:14initial short term rallies that take
76. 3:16place
77. 3:18many times traders that are looking at
78. 3:19those
79. 3:20as entry points they end up getting
80. 3:22stopped out because what you're doing is
81. 3:24they're piggybacking on an entry that is
82. 3:27based on a hedging motive on the market
83. 3:30maker so as the lows keep creating lower
84. 3:33lows but every time the price makes a
85. 3:35smaller short term move higher
86. 3:37we're going to be referencing that last
87. 3:39down candle because that's a bullish
88. 3:41order block
89. 3:42but it's occurring we're watching the
90. 3:44bullish order blocks or the down candles
91. 3:46right before a small little price moving
92. 3:47higher during the sell side of the curve
93. 3:50now this this
94. 3:52market maker buy model the curve is
95. 3:54basically a price swing lower that
96. 3:56trades higher
97. 3:57that's all market maker buy profile is
98. 3:59or market maker buy model it's just
99. 4:01understanding that the market is going
100. 4:03lower to go higher
101. 4:06eventually
102. 4:07we'll see the price move higher off of a
103. 4:11major support level and we'll start
104. 4:13seeing the buy side of the curve come
105. 4:14underway
106. 4:16the market will start pricing new higher
107. 4:18highs
108. 4:19and as it does we're going to be
109. 4:20focusing on those
110. 4:22old
111. 4:23down candles during the cell side of the
112. 4:24curve every time there was a bullish
113. 4:26order block that was created
114. 4:28on the major price swing going lower and
115. 4:30it saw a little bit of a minor movement
116. 4:32higher
117. 4:34that has indicated that there was
118. 4:35hedging going on and that down candle is
119. 4:37what we're going to be looking to
120. 4:39reclaim
121. 4:40or watch price recapitalize that old
122. 4:43order block now that we're on the buy
123. 4:44side of the curve
124. 4:46every new buying opportunity
125. 4:49is going to be matched up to the
126. 4:50previous down candle
127. 4:52while the price was dropping earlier on
128. 4:54the cell side of the curve
129. 4:57and ultimately everything will match up
130. 5:00with the down candles on both sides of
131. 5:02the market maker by model
132. 5:05so what is a bullish reclaimed block is
133. 5:07a candle or bar that was previously used
134. 5:09to buy price and a short term bounce
135. 5:11confirms minor displacement
136. 5:14in the buy side of the curve these old
137. 5:16blocks or down candles will be reclaimed
138. 5:19for new longs
139. 5:22let's take a look at what it looks like
140. 5:23in price action
141. 5:25okay we see the market dropping down
142. 5:27from november 24th into november 29th
143. 5:32okay so we have a market maker buy model
144. 5:34where the market's going down to go
145. 5:36higher see here this down candle
146. 5:39on the buy side of the curve
147. 5:41right here
148. 5:43this down candle right before this
149. 5:44movement up here this displacement shows
150. 5:47that this was an actual hedging where
151. 5:49they were buying early and the market
152. 5:51drops lower
153. 5:53okay once it makes its low here you can
154. 5:55see the price did in fact come back down
155. 5:56to this same down candle
156. 5:59right to it here and was reclaimed or
157. 6:01they recapitalized this old order block
158. 6:04here and price started to move higher
159. 6:07the next level is here this movement
160. 6:09down prior to this displacement here
161. 6:11all of this movement here this down
162. 6:13candle is a bullish order block on the
163. 6:16right side of this low now we're on the
164. 6:19buy side of the curve and that's what
165. 6:20this movement is here hits it right to
166. 6:21the pip
167. 6:22and then price moves higher
168. 6:24so they are two examples of
169. 6:26reclaimed bullish order blocks
170. 6:32okay now we're gonna take a look at the
171. 6:33market maker sell model
172. 6:36this is just the same thing just in
173. 6:37reverse where we're anticipating the
174. 6:39market to trade higher to go lower
175. 6:42you may not see it happen before the
176. 6:44fact you may notice that the market's
177. 6:46making a high and you expect to see a
178. 6:48sell-off so we can use this information
179. 6:51just
180. 6:52by focusing on the buy side of the curve
181. 6:55every up candle that sees a displacement
182. 6:58or a short-term decline
183. 7:00confirms that there are
184. 7:02hedging underway
185. 7:04that means that they're selling short
186. 7:05early and market makers are selling into
187. 7:07these rallies when we get to the sell
188. 7:09side of the curve
189. 7:11every single time we see the market
190. 7:12trade back up into a up candle or
191. 7:16bullish candle right before the down
192. 7:17move during the buy side of the curve
193. 7:19that bearish order block is going to be
194. 7:21reclaimed
195. 7:23and you can take that as a new short
196. 7:25and again matching up during the buy
197. 7:27side of the curve while price is being
198. 7:28built up into a premium
199. 7:31the market makers are actually going to
200. 7:32hedge into that rally selling short they
201. 7:35have deeper pockets than us they can do
202. 7:37this for a longer period of time
203. 7:39and as they do this their pricing in
204. 7:41more short positions
205. 7:43we can match that up and see it like
206. 7:45x-ray vision into price action by
207. 7:48looking at every single up candle that
208. 7:50has a small displacement or short-term
209. 7:53decline that's confirming that there was
210. 7:55hedging on the wave again we understand
211. 7:57that market makers and smart money
212. 7:59they're the only ones that can move
213. 8:00price around so if there is a
214. 8:02displacement in price and we see
215. 8:04bearishness after an up candle we can
216. 8:07assume that this is going to be evidence
217. 8:10that they have been hedging and selling
218. 8:11short early
219. 8:13when we get to the high and we climax
220. 8:15there and start trading softer and going
221. 8:17lower every time we retrade back up into
222. 8:20that old previous up candle during the
223. 8:23buy side
224. 8:25but we're to the right of the high
225. 8:27that's already formed we can now take
226. 8:29new shorts
227. 8:31at these old bearish order blocks
228. 8:33everything matching on the buy side of
229. 8:35the curve to the cell side of the curve
230. 8:38so again in summary a bearish reclaimed
231. 8:42order block
232. 8:43is a candle or bar that is was
233. 8:45previously used to sell price
234. 8:48and a short-term decline confirms minor
235. 8:50displacement
236. 8:51in the cell side of the curve these old
237. 8:53blocks will be reclaimed shorts or new
238. 8:55entries for short positions
239. 8:58all right let's take a look at this
240. 9:00chart we'll take a
241. 9:01look at the example of a market maker
242. 9:04cell profile
243. 9:06and using the reclaimed order block
244. 9:07we're gonna be looking at the cell side
245. 9:10of the curve or to the right of the high
246. 9:12and we're gonna be focusing on every up
247. 9:14candle that showed a willingness to see
248. 9:16price drop during the buy side of the
249. 9:18curve or to the left of the high that
250. 9:20formed
251. 9:22you see here
252. 9:25the last beefy candle right before this
253. 9:27drop down
254. 9:28price trades up into it here
255. 9:31and sells off
256. 9:32the nest next example is
257. 9:35this up candle here which would be a
258. 9:37bearish order block
259. 9:39would be reasonably seen as in the free
260. 9:41tutorials you would think that this was
261. 9:43probably a bearish indication to start
262. 9:45looking for lower prices it doesn't do
263. 9:47that here it trades through it but we
264. 9:48see a climax high so now we see price
265. 9:51doing what it trades up into this up
266. 9:54candle this is a new short
267. 9:58another example here this last stop
268. 9:59candle here price trades up into it here
269. 10:03very handsomely sees that as a
270. 10:05displacement lower here so you started
271. 10:07hedging here
272. 10:08this is a selling short opportunity to
273. 10:11see the completion of the market maker
274. 10:14cell profile
275. 10:16so again in summary
276. 10:19we use the market maker buy and sell
277. 10:20models
278. 10:22to
279. 10:23be able to match up old order blocks
280. 10:26during the buy side and the cell side of
281. 10:27the curve and we wait for that reclaimed
282. 10:32mechanism that takes place where the
283. 10:34market makers will use these same
284. 10:36reference points
285. 10:37and facilitate new positions
286. 10:41we'll build more on this idea as we go
287. 10:43through the coming months of material
288. 10:45and you'll see examples of it before the
289. 10:47fact and i'll be able to map it out for
290. 10:48you but for now study these examples and
291. 10:51also go through your charts and find
292. 10:52where you can see during price rallies
293. 10:54like this and declines
294. 10:55map out all of the up candles and during
295. 10:58the decline side of the marketplace
296. 11:00you'll see that there's wonderful
297. 11:01opportunities to get short that you
298. 11:03would otherwise not notice
299. 11:05until next time i wish you good luck and
300. 11:07good trading