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0:28welcome back folks this is ict with a
0:32fifth installment of the eight in the
0:34continuing series for the first month of
0:36the ict mentorship for the month of
0:38september
0:39uh the previous tutorial in session four
0:42we looked at equilibrium versus discount
0:45in this session we're looking at
0:46equilibrium versus premium
0:49we went through a great deal of content
0:51in regards to
0:52discount versus equilibrium so
0:55we won't have to spend so much time with
0:56this tutorial because everything we're
0:58selling here is basically diametrically
1:00opposed to what you would expect to see
1:02in the equilibrium versus
1:05discount
1:06teaching
1:08so looking at what we have
1:11when we look for
1:14premium markets markets that are in a
1:16premium now when we talk about
1:18commodities later on in this mentorship
1:20uh the the topic of premium will come up
1:22again
1:24but when i'm referring to premium as it
1:25relates to price action uh i'm actually
1:28referring to the current range that
1:31we're uh trading in
1:33and
1:34the first thing we look for is an
1:36impulse price swing which is we have an
1:38impulse price point here we have another
1:39impulse price one here we have another
1:41impulse price swing here
1:45so the first thing we look for in price
1:47is an impulse swing
1:49and we see one here
1:51we see another one here we see another
1:53one here
1:54and
1:55these three
1:56price swings actually make up one larger
1:58price swing
2:00which is an impulse leg or impulse swing
2:03by itself by its own right
2:05so
2:07when we define our ranges
2:10okay the use of the fibonacci is
2:13helpful in this case because we can take
2:14the fib draw from a high
2:17down to a price low
2:20and i'm using this low here because it's
2:21the most
2:22lowest
2:24in contrast to this high
2:26and price comes all the way back up
2:29to what i have taught in many years
2:32the optimal trade entry which is a
2:34standard 79 to 60 retracement level on
2:38the fib now i didn't create that
2:40but
2:41if it was just simply looking at
2:43that alone 62 percent to 700 levels uh
2:47looking for buys and sells there
2:48everywhere we loaded it would be no no
2:51work at all in terms of uh taking trades
2:54but obviously you probably learned very
2:56quickly there's much more to it than
2:57just pulling a fib over top of price
3:00swings
3:01we have
3:02in
3:05this larger price swing we have a
3:06smaller price swing here okay
3:09and we have the high down to this low
3:11and the market starts to retrace
3:12equilibrium or half of the impulse price
3:15swing
3:16has to be at least touched and then once
3:19it hits that we watch for price to reach
3:21up into
3:22this area here then there's other
3:23disciplines out there and other mentors
3:25other teachers will say that the 50
3:27retracement level is a good level to
3:29trade at based on price swings i don't
3:31agree with that um i understand that
3:34sometimes it's going to work but what i
3:36want to do is i want to be selling at a
3:37market that's at a premium level
3:40for a market to be at a premium in this
3:41current price range here and it's
3:43assuming none of the price action from
3:44this high
3:45down all the way to the right has not
3:47happened yet so you'd be watching price
3:49in this initial range
3:51and price did not get back up to the
3:53midway point or 50 percent of the uh
3:56the range that was created from the high
3:57to low that's all equilibrium is is
4:00fifty percent on the fit let's have to
4:01tell them describing it but the concept
4:04is is you have to see a
4:05market price
4:07a move above the halfway point once it
4:10does that start it starts going into
4:11what is referred to as a premium market
4:14that means it's at a really high price
4:15relative to its current trading range
4:19we don't need overbought never sold
4:20indicators to help us
4:22classify an overvoter we're sold market
4:25we just simply need to know the current
4:26price range we're trading in and if we
4:29get above the 50 level okay we start
4:31getting into what would be deemed as
4:33overbought or at a premium level
4:36on this pricing here it obviously never
4:38gets above the 50 and everything touches
4:39it so it never gives us an opportunity
4:41to get short
4:42relative to this time frame or this
4:44price swing
4:46so there would be nothing to do there
4:48the next price leg
4:50here
4:52okay the same thing from this high to
4:54this low not nothing in terms of that
4:57price swing there it doesn't get back up
4:58to the 50 uh level but look closer
5:02there's another smaller price swing that
5:04has formed right in here
5:06okay so we could look at that
5:09measure the high
5:11to the low and the market gets right to
5:13a pre uh i'm sorry equilibrium but does
5:15not stay above to go to a premium market
5:18it only goes right to the fibonacci 50
5:21level or what we deem as equilibrium so
5:23price goes to an equilibrium price point
5:25and then immediately sells off this
5:27would be a missed opportunity in regards
5:29to looking at
5:31equilibrium to premium the reason why we
5:33want to focus primarily on the 62 or 79
5:36trace levels in that range to be selling
5:38short
5:39is because the market's going to be
5:40really pressed higher and would be
5:42really
5:43in terms of overbought never sold it
5:45would be very overbought and it would be
5:47expecting a willingness to to sell
5:50softer and go lower there's going to be
5:52times when the market does not give that
5:54scenario to you and you just got to let
5:56those
5:57particular price links go without you
6:01the next price swing
6:06is this high to this low market trades
6:09back up to equilibrium here
6:11and move this over so you can see a
6:13little bit better
6:17okay so market trades back to
6:18equilibrium goes back above it into a
6:21premium market
6:23and it goes right on through
6:26what would be deemed as an optimal trade
6:27entry okay or selling at a premium so
6:30here's a wonderful thing about this
6:32you can look at this and say okay if i'm
6:34measuring this high to this low
6:37and i'm going to be selling i'm above
6:38equilibrium i want to get short
6:40in this area between 62 and 79 chasing
6:43level okay
6:44you look over here
6:46maybe there's something over here
6:47institutionally um in terms of a bearish
6:49order block or something like that you
6:50can define we're going to say that
6:52that's not there we're going to say that
6:54we went short just purely on price
6:56action retracing back into the fibonacci
6:58level here it comes all the way up and
7:00hits you where your stop would be
7:03when you see these conditions where the
7:05market trades above equilibrium and goes
7:08through the levels of 62 and 79 certain
7:10trace levels what that does is it gives
7:12you a condition that we saw
7:14in the equilibrium to discount if it
7:17takes out a previous low when it's in
7:19discount it's probably going to be a
7:20turtle suit by
7:23in this case it's going to be a turtle
7:24soup cell it's going to be reaching for
7:26stops above
7:27the impulse
7:29swings high
7:30and you see that here it goes up runs
7:32out the stops here and then goes lower
7:34where is it going to go where do you
7:35take profits at below lows it's already
7:37established in the marketplace here and
7:39here you see that's exactly what the
7:41market does
7:42you can also use
7:44when you're defining your ranges
7:46all price swings from high down to low
7:49okay you you want to anchor your your
7:51fibonacci on
7:53the market goes down from this high all
7:55the way down to here okay and creates
7:57that low
7:58as soon as we start seeing it bounce up
8:00you need four candles remember it's the
8:02same thing we just saw on the
8:04equilibrium to discount
8:05teaching once you see a a swing low form
8:09you're watching that fourth candle to
8:11show willingness to go higher it does
8:14but then you simply wait here's the
8:16equilibrium price point this this fifty
8:18percent level in the fifth
8:19price goes through that so now you're
8:21gonna be watching it you're gonna want
8:22to see if price gets to sixty two the
8:24seven tracing levels it does
8:26and it does it while it's running out
8:28that high here so two scenarios one you
8:30could have used this high down to this
8:32low and got a stop out
8:35in the initial
8:37uh 62 to 700 tracement levels where we
8:40saw earlier but it ran right through it
8:42if you had not anchored your fib to this
8:44high to this low
8:46you would never see this
8:48optimal trade entry okay or return to a
8:50premium to go short
8:53is above the equilibrium price point and
8:54it takes out an old high
8:56so we're running stops at an old high
8:58and we're going back into what would be
9:00a premium market we're above the
9:02equilibrium price point of the range
9:04high
9:05and the range low and we take stops out
9:08that's really really good in terms of
9:10probabilities and the market goes down
9:12and sweeps out a previous low remember
9:14when we were looking at the equilibrium
9:15discount every time we were buying we
9:17were taking profits at above an old high
9:21okay so when you see that all we're
9:24seeing is the reverse of that in the
9:25equilibrium versus premium market so
9:28we're always looking to sell at a
9:29premium premium is defined by has to be
9:31above the equilibrium price point or 50
9:3350 level of the fibonacci anchored on a
9:38swing of
9:40clear
9:41discernible price action in other words
9:42if it looks sloppy if you if it doesn't
9:44really look like a solid price swing and
9:47obviously obvious price swings are the
9:49ones we look at we're not looking at
9:51anything it looks questionable if it's a
9:53pure price swing we measure it and
9:56this is a high
9:57this is a low and we went through all
9:59potential stages of all these high to
10:02low high to low high low scenarios
10:05really nice scenario here again taking
10:07profits initially below this low here
10:09when it would hit that and then you'd
10:10hold out for a potential run for some of
10:12your trade to be taken off below this
10:14low here
10:16now the market goes into another uh area
10:21of
10:22premium relative to equilibrium
10:24we go back to this larger price swing
10:26here
10:28this low all up to this high the market
10:31goes right into the 79
10:3379 retracement level hits it perfectly
10:36to the pit
10:37and then rolls down where do you take
10:38your profits at
10:40you're gonna be looking to take profits
10:41at below this low here
10:43okay and into
10:45the order block down in here which is
10:47what you see right there
10:49okay
10:50you have another range
10:52that you can use
10:55this high
10:59to this low
11:00okay
11:01now what's up what's really nice about
11:03this is if the market's in a
11:04consolidation this type of trading
11:06is your go-to okay a long protractionary
11:10state in the marketplace where it goes
11:13up and down no no real movement higher
11:16in one direction or lower in one
11:17direction it just stays in a large
11:19consolidation you want to be trading
11:21turtle soups or understanding where
11:24premium and discount are
11:27if you have the high here and you pull
11:29it down to the low here when the market
11:31gets above equilibrium right in here it
11:33goes right into the 17.5 or what would
11:36be the optimal trade entry sweet spot
11:38okay or ote
11:39and the market is a sell-off there where
11:41where do you look to take your profits
11:43at
11:44below and old low
11:46or
11:47below this low right there
11:49every time the market makes a swing low
11:51you have to take a look and it only
11:53takes three candles this is why i do not
11:54use the
11:55williams uh fractal it requires five
11:58candles i only need three candles so we
12:00have a candle low here a lower candle
12:03low here a small smaller little candle
12:05in here
12:06the market
12:08blows through that that would be your uh
12:10your target right there you would take
12:11first profit then you would come back
12:13and end up taking your stop out right
12:15there now
12:17if you get a stop
12:20and say you don't take first profit the
12:22slave doubles advocate for a moment say
12:24you're greedy you're impatient you're
12:26developing you just
12:27don't want to do anything to take some
12:29profits out
12:31or it couldn't happen for you you didn't
12:32do it like that the mark comes back and
12:34takes your stop loss out
12:36if you see that scenario
12:38okay you're gonna be looking for old
12:40highs to be breached
12:42while we're above the fifty percent uh
12:44level so we're in pre we're at a deep
12:46premium okay so markets are overbought
12:49right in here the market runs through
12:51this previous high so we're in turtle
12:53soup scenario
12:54we could be looking for turtle soup
12:56cells
12:57mark comes up starts to come down
13:00one more time runs through you takes
13:02your stop out again this is going to
13:04happen in your trading
13:06do not try to avoid it because it's
13:08going to happen
13:10same scenario
13:11we have an old high mark goes back above
13:13it if it's at a premium
13:16and you've defined the range here
13:18you take this scenario as a cell on
13:20turtle suit basis
13:22for each above an old high sell short
13:25we're going to take profits at below the
13:27first low that's here the next low is
13:29right here
13:30then we have another range created here
13:32so while we're watching this form soon
13:34as we see a swing low form this candle
13:36here we know they're probably going to
13:37want to run back up into this range here
13:40now we have a new range
13:42the impulse price swing
13:46is this high
13:49down to this low
13:52here's equilibrium price expands to
13:54equilibrium once we start seeing that we
13:56watch does it get to 62 it does the
13:59bodies of the candle stop perfectly
14:00right there you could sell short right
14:02there what's nice is you're going to see
14:04the bottom of this candle is up candle
14:05that's a bearish overblock which you'll
14:07learn more about
14:09that's a cell by itself where you look
14:11to take profits at below the old low
14:14right in here
14:15it goes right down below that and does
14:17what
14:18trades back up higher
14:20if we use the price swing
14:23from that high we just anchored two to
14:25this low
14:27the same thing occurs here we have this
14:28high all the way down to this price low
14:31price comes all up into the 79 trace
14:34level above equilibrium we start
14:35watching it now we're in an area where
14:37the price is going into equilibrium i'm
14:39sorry from equilibrium up into premium
14:42okay premium is above equilibrium in a
14:44range that's been defined from high to
14:46low
14:46and look what's happening we're running
14:48out an area of stops above it or high
14:50again very very good
14:52uh probabilities for getting short
14:56take that as a turtle suit inside of a
14:58premium based market
15:01and you could look to take profits on a
15:03swing low
15:05here's your swing low here the market
15:07trades down through that you'd have to
15:08take profits below here
15:11market trades down in two
15:12small little consolidation here and i'm
15:15not going to define anything else that's
15:16in this chart because i could do all
15:17kinds of other things to it would look
15:18like sugar coating but
15:20you'll learn other things to look at and
15:22it has to do with this can over here
15:24so we'll refer to this candle later on
15:26and uh
15:27recapitalize bullish shoulder blocks and
15:28bear shorter blocks but
15:31the market creates another range
15:33this high down to this low here
15:42so this high down to this low market
15:44goes above equilibrium here where is it
15:46going to go to we want to watch it go to
15:47at least 62 percent tracing level it
15:50does that goes right after the 70.5 ote
15:53optimal trade entry and then sells off
15:55where you take profits at below swing
15:56low right here's the swing low take
15:58profits right there now they're not
16:01astronomical trades okay they're not
16:04enormous trades but
16:07to get short in here at 98 big figure
16:10and covering below the low on this
16:11candle here at 96.94 that's over 100
16:15pips
16:16nothing wrong with that this is a daily
16:18chart we're trading off of
16:19again this is helping these folks that
16:21cannot be doing
16:23day trades okay you don't need a great
16:25deal of movement
16:27on a daily chart to make a decent amount
16:29of pips we're going to go back to this
16:32high
16:34and use that same old low here okay
16:37from this high down to this low if you
16:39went short here based on stop run above
16:41here and we're at a premium we're above
16:43the equilibrium we've defined our range
16:45we're looking to sell into strength it's
16:47scary when you first start looking at it
16:49as a new trader
16:50but that's exactly what you want to be
16:51doing as a professional trader you want
16:52to be selling at premium prices
16:55think about it you could sell something
16:56if you own it say you own a car and you
16:58want to sell your car do you want to
16:59sell it at a discount that doesn't make
17:01any sense you want to sell at a premium
17:04so professional traders sell their long
17:05positions or they sell new short
17:08positions at premium prices
17:11ain't no better place in the world to
17:13sell short or sell longs above an old
17:16high because there's going to be willing
17:17buyers right there in the form of buy
17:19stops
17:20so when we see this area here we get
17:21short
17:22from this area here going short and if
17:25you just took profits once this low
17:26formed
17:28that low comes in at
17:3139 97 39 and the open is
17:3597.99 so we're going to say we went
17:37short somewhere around about 98 big
17:39figure the low comes in at 97.39 so that
17:42means your stop i'm sorry your limit
17:44order take profits would be below 97.39
17:48so you get the low here say you're
17:49aiming for 10 pips below that low
17:52below this low right here
17:56you'd be looking for
17:5797.29 roughly 97 30.
18:01that's 70 pips using a setup that's on a
18:03daily chart you're not interested
18:05trading you're not looking at five
18:06minutes 15 minute charts you know you're
18:08not you're not being forced to do what
18:10ict does most of his teachings through
18:12intraday uh trading but the same
18:14concepts appear in these higher time
18:16frame charts so don't discount it that
18:18i'm teaching you in a 15-minute basis
18:20because all the concepts are universal
18:22and i know it's hard for you to
18:24understand that as a new trader because
18:26it just seems like i can't be watching
18:28that chart so therefore i can't trade
18:29that's not true that's not true at all
18:32so
18:35by having these ideas
18:38of looking at price over the course of a
18:40premium market if we go down to a
18:44say we go down to an hourly chart
18:50okay and what's nice is you don't have
18:51to trade with a bias
18:53most people are always asking me hey
18:55looking can you give me a a a way of
18:58trading with a a daily bias give me the
19:00trend direction michael i need to know
19:01that well you don't really need to know
19:02that you don't need to know it
19:04and the reason why you don't need to
19:05know it is because you need to know how
19:06to trade inside of a range
19:08because those ranges are always there
19:10whether you're in a trending market
19:10whether you're in consolidation or
19:12whether in a reversal market
19:13those profiles will always give you
19:15ranges to trade in and you don't need to
19:17break out of the range to make money
19:20we have a swing high here
19:23why am i using that swing high michael
19:25not this one here not this one here
19:27because this is the most recent one
19:28prior to this down move i could use this
19:30one here but i'm going to use this
19:31because it has more price action around
19:32it
19:34this high
19:35down to the lowest low okay market
19:38trades up to the equilibrium in here
19:40okay does it get to premium no it
19:43doesn't get up there yet it comes down
19:45off of this a little bit then trades
19:46right up into 79 tradesmen level right
19:48in here
19:49closes in a range which we'll talk about
19:51in the next teaching
19:53over here
19:55the market sale that sells off
19:58and where you're going to be looking to
19:59take profits at you have a small little
20:01swing low here you have a certain real
20:03good swing low here
20:04so if you're getting short up here
20:07and on an hourly basis
20:14say we got short at 97.70
20:17nice round number
20:20to get out that level here's 42 pips to
20:22get out below this low here 60 pips so
20:24if you go 10 pips below that
20:28that'll give you
20:29oh
20:30nice 70 pips
20:32and give you a nice 70 pips and there
20:33look at the reaction
20:35going 10 pips below here yeah this range
20:37low
20:38from that high up here where we would
20:39have been selling at based on the
20:41concepts again it's all hypothetical in
20:43hindsight here but the conceptual idea
20:45is the same going forward
20:47range is 60 pips 10 pips below will be
20:5070. you got at least four pips below
20:52that for uh for spread to take you out
20:54and absolutely does that and it doesn't
20:56go very much a little at all

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