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YouTube transcript (bCRbfmuHe2w) — Transcript

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0:13all right let's get started
0:14i want to welcome everybody to the
0:16family we got a lot of new people here a
0:17lot of new students
0:18i'm very excited but i want to i want to
0:21tell you a little bit about myself a
0:22little bit about
0:23a story before we move forward
0:26why do you know that heidi and i like to
0:28go to the beach every summer we stay out
0:29there a few months at a time
0:31and uh some of you that are in florida
0:33know the area know that we had a monster
0:34storm
0:36in july about i don't know about two
0:38weeks ago
0:39and we were held up in the uh the condo
0:42for
0:43i don't know two three days wind was
0:45blowing 30 40 miles an hour
0:46we were stuck in there i was going a
0:48little stir crazy internet was down
0:50and uh finally you know the storm dried
0:53up
0:53sun broke and i ran downstairs as soon
0:58as i could get out of that place i was
0:59going stir crazy
1:00and i went on the beach and uh there was
1:02a lot of devastation
1:04there was a lot of sailboats turned over
1:06catamarans jet skis toppled over on the
1:08trailer
1:08all the lawn furniture was gone and
1:12when i got to the shoreline i looked
1:14both directions to the left and to the
1:15right
1:17and to my amazement there had to be i
1:20don't know
1:2110 million a thousand i don't know the
1:22number was insane
1:24starfish laying on the beach and they
1:27were just
1:28everywhere i mean i was standing there
1:29around my ankles
1:31and you know heidi was dragging the baby
1:32behind me
1:34and uh i bent over started picking them
1:37up started throwing them back
1:39i picked up one i tossed it picked up
1:41another one tried to skip it threw it in
1:42there
1:43you know like you skipped a rock grabbed
1:45another one skipped them in there i just
1:47started throwing them in as fast as i
1:48could
1:50and heidi came up to me she finally
1:51caught up with chase she was a little
1:52out of breath and she goes what are you
1:54doing
1:56it doesn't matter look at this look at
1:57all these starfish on the beach
2:00and i picked another one up in my hand
2:01and i showed it to her before i tossed
2:03it back
2:04and i told her heidi to this one it
2:06matters
2:08tossed it back you guys matter to me
2:12you laid out the money for me and now
2:16i'm here for you
2:18what i want you to do is dismiss
2:22all the other crap that you've learned
2:24about trading
2:25for the next four days
2:29and i want to be here for you i want you
2:32to sip the kool-aid
2:36and just be become part of something
2:38bigger than yourself
2:41i always say this and it's the truth
2:46this is the last 4x market training you
2:48are ever going to need
2:51but the problem is if you go outside of
2:53this area this room this group of
2:54traders
2:55to find solace or to find comfort you
2:57are not going to find it
2:59because people don't know what this
3:01group in here knows
3:04people think i am a quack a nut job a
3:07sicko
3:08a psycho whatever they don't believe
3:13that what i say to be true
3:17the fact that you join this group
3:20proves to me that you know that i'm not
3:22crazy that maybe i'm on to something
3:25i promise you subscribe to something
3:28bigger than yourself
3:30become part of the family wholeheartedly
3:32and you will have success in this
3:34trading business
3:38okay so let's get started
3:41all right this is one that pisses
3:43everybody off
3:45no trading this week i want you to stop
3:48trading for a couple of days money
3:51when it's on the table good or bad
3:53clouds your judgment
3:56especially if you're losing right if
3:58you're in a negative open float or if
4:00your trades are down or you're getting
4:01stopped out
4:02you're not going to think with a clear
4:04head
4:06and if you make too much money the same
4:09thing applies you're going to be so
4:10jacked up that you're not going to
4:11listen to anything
4:12just turn the platform off for a few
4:14days the market's going to be there when
4:15this class is over i promise
4:20and just hang on absorb the knowledge
4:23with an open mind and then be ready to
4:26trade at the end of this class going
4:28into next monday
4:29okay
4:33what i wanted to mention to you is that
4:35we're gonna do a little something
4:35different this class that we haven't
4:37done before
4:38i'm gonna have carr kim and granny on
4:40the last night
4:42come in and give you the market maker
4:45biases going into next week
4:48what that's going to do is after you
4:50have the information
4:52you'll have a firsthand idea how to
4:54apply it for next week's market
4:58okay some of the points i mentioned i'm
5:01asking this as a favor put aside
5:02everything you think you know to be true
5:04about the markets
5:06open your mind to the possibility there
5:08is in fact something going on here and
5:09then we're
5:10privy to it allow yourself the
5:13opportunity to have success
5:16and something i say in my regular
5:18presentation don't try to mix systems
5:20into this don't say oh steve this is
5:22great but i like the slingshot
5:24or i like the rainbow stochastics to add
5:26to the bottom of this it'll really make
5:27it great
5:29that stuff is unnecessary
5:32don't do any of that stuff just give me
5:35four days sip the kool-aid
5:38i promise you you'll be happy all right
5:41this housekeeping slide usually we don't
5:43need to worry about cell phones on
5:44vibrate
5:45i'm gonna try to break about five to ten
5:47minutes every hour quick bathroom break
5:49grab a diet coke etc
5:52i don't put out a book or textbook or
5:54notes
5:57so i'm gonna insist that you write stuff
5:59down
6:01or go back through the recordings and
6:02take advantage of that and take your
6:03notes then just enjoy the class
6:06can mention this but it's important if
6:08you're a retake don't ask questions
6:10about
6:10sections that we're not covering yet
6:13gloria if you're here don't ask me about
6:14the adr on day one
6:16save that for when it's supposed to be
6:18presented
6:20if you have questions and you just can't
6:21stand it email them to me
6:24or save them for the very end of class
6:26during the presentation all right let's
6:27not try to interrupt the flow
6:29of what's going on
6:33all right i want you to be courteous to
6:34your other students in the forum
6:37in the classroom and in the live
6:38classroom we all paid to be here
6:41everybody learns at a different pace if
6:43i get going too fast
6:45don't be ashamed to say hey steve man
6:47look you're jacked up on diet coke i
6:48can't keep up slow down a little bit
6:51i'll wait up for you guys
6:54all right i'm here for all of you that's
6:56not some sales or the sales
6:58part's over
6:59i'm here for you guys i answer emails
7:03if you're struggling and you're
7:05embarrassed to ask me don't be you paid
7:07to be here
7:10i'm here to get everybody going in the
7:12right direction on the right track
7:16all right we're going to do some
7:17homework uh possibly going to end up
7:20posting in the forum but here's the
7:21email address the homework goes to
7:24steve mmm4x.com
7:28the guys that are having the most
7:29success girls too
7:31have done all the homework some still do
7:35homework on the weekends or on a slow
7:36night
7:37i know you're saying ah i didn't
7:39pay this guy all this money to sit here
7:41and do homework
7:43i promise you that homework is the key
7:46to success and what i'm talking about if
7:49you can't see it in hindsight you will
7:51never see it in real time in foresight
7:55so the idea with the homework is once i
7:57illustrate to you how the market makers
7:58work the market
8:00is to go back and to make sure
8:04that you can see the stuff developing
8:06see the levels and see the things that i
8:07point out to you in the past
8:11and once you can rapidly identify those
8:13things
8:16in the previous charts or in history you
8:18should start to recognize their
8:19appearance in real time
8:22everyone should have gotten a glossary
8:24if not is in the forum
8:26keep it handy for the next couple of
8:28days it might say some things that don't
8:29sound normal
8:30that's normal for me uh the
8:33terminologies are on there the best
8:34thing to do is tonight after class if
8:36you're a little lost just read over that
8:37a couple of times
8:38and get familiar with some of the things
8:40i say that's all
8:43right that's what it looks like you
8:44should have it
8:49okay some people are saying they can't
8:50see the slides we're on the glossary
8:52page if you can hear me but not see
8:54slides moving
8:57i'm everything's working on my end i'm
8:59positive so log off and log back on okay
9:04all right let's get started we're all
9:07here to learn how to beat the market
9:08maker and trade in line with them
9:13all right so to beat this guy or these
9:15group of guys you got to understand
9:16their objectives and what they do
9:20their first objective is to induce
9:22traders to take a position
9:25how do they do that they circular trade
9:28which means they trade between them they
9:30trade from bank to bank back and forth
9:33they produce wide range swings
9:37the swings create
9:41some type of activity in the market even
9:43though there's real no really no volume
9:45behind it
9:48your account is of no use to him you
9:50making a deposit of fxdd
9:52is of no use to the dealer until you
9:54click the mouse
9:55until you take a position
9:58so his job is to induce you to click the
10:00mouse by showing you something on the
10:02chart
10:03that gets you to take action usually
10:06sets up some type of textbook technical
10:09that you've read about or a breakout
10:10system some type of behavior to get you
10:12to click the mouse
10:16the second objective
10:19is to create panic and fear to get you
10:21to think irrationally
10:23now i talk about the illustration as
10:25they spike the market
10:26quickly and pull away from those zones
10:29which validates the pending orders or
10:30gets people
10:32going in the wrong way that quick move
10:34or spike
10:35or inexplicable price behavior out of
10:37nowhere they spike the market
10:40on a friday afternoon right before the
10:41close
10:44that creates a panic in you and if
10:46you're in a position when they snatch
10:48the market away from you
10:49that creates a panic gets you to lift
10:51your stop and think irrationally
10:54that irrational behavior ensures that
10:57they will margin you out or eventually
10:59get you into trouble
11:03and finally what the business is about
11:05from the beginning is the money
11:08so they gotta hit the stops and clear
11:09the board
11:12and if you lifted your stop they're
11:13going to drag the market in such a way
11:15that it forces the majority of the
11:17traders into margin
11:18issues
11:21because the bottom line and the most
11:23important objective
11:24is to pocket your money so they can get
11:26their christmas bonuses
11:30okay am i going at a good pace
11:36okay in order to beat this guy
11:41you got to know what they're capable of
11:43doing
11:46these slides were given to me out of a
11:48textbook
11:50in the back office in dubai called the
11:53metatrader4 managers user guide
11:58okay what you're saying you didn't know
11:59they had a book did you think that 4
12:02trillion
12:03is floating around without a book or
12:04some type of idea
12:06on how to beat the traders
12:11somebody wrote a book on how to take
12:13your hard-earned money away
12:17the business is not random
12:22okay
12:24market makers can issue you a re-quote
12:27at will
12:32you see the three buttons in the center
12:34return send confirm reject
12:39they simply hit the reject button and
12:41you are forced to reissue your order
12:47which in turn the market's moving you
12:49get re-quoted at the new
12:51available price
12:54keeps you from getting a good fill
12:56getting a good entry
13:00market makers can trigger all the stops
13:03in a range
13:07left arrow says stop out check the box
13:10the right arrow unlimited across the
13:12board
13:12we got x number contracts and open float
13:15at this price point we want to hit the
13:17stops
13:18they simply add that
13:23hit okay notice it's in different
13:26languages
13:28they hit it done they got what they need
13:34market makers can toy with the spreads
13:38you know those robots that work so
13:40wonderful in demo that are garbage
13:43this is why in demo
13:47you get an aggregate of about three
13:51feeds three price feeds
13:54the aggregate of three feeds is going to
13:56be much smoother than what you're really
13:58up against
13:59on a real account in demo
14:02since it's not real they could care less
14:05about manipulating the spread
14:08widening the spread to pick up the stops
14:10they don't care
14:13so what happens is you spend 97 which by
14:16the way is the refund price point for
14:17clickbank
14:19you spend 97 bucks and buy a robot
14:21anything over 97 bucks they got to give
14:23you a refund anything under they do not
14:26you own this robot you put it on an
14:28account in demo it makes 10 million
14:30dollars in 25 minutes you're jacked
14:32you put your hard-earned money in the
14:34account
14:39and then guess what they take that
14:41little slider where the arrow is
14:44and open the spread on you you'll pick
14:46up your buy side of the order
14:48and the sell side or the opposite
14:50closing position side will never hit
14:56there's a lawsuit right now i believe
14:59it's with fxcm
15:01that states this exactly i think
15:04sent it to me
15:05and if i remember uh someone reminds me
15:07of an email i'll post it in the forum
15:11since it's a private forum i could say
15:13the name i guess can i can i don't know
15:14the dealer
15:17is being sued for having these backside
15:20plugins
15:25and using these against the traders now
15:27i want to say that not all dealers use
15:29this there are some honest dealers out
15:31there
15:33usually the ones that are backed up by
15:34banks or i know kim and scott represent
15:37good clean dealers but what i'm telling
15:39you
15:40is that this kind of crap goes on that's
15:42why the nfa is trying to regulate this
15:44business and clean it up a little bit
15:52okay do you ever open up two different
15:53platforms and notice
15:56that maybe one high of the day is 23.55
16:01and another one is 23.57
16:07do you understand that the dealer
16:12can hold the price point with this
16:14plug-in right here
16:16here's how
16:19he can set the high low and close on a
16:21bar
16:24based on where the orders are so if the
16:26dealer sees stops at
16:2923.59 or if he sees
16:32a bunch of orders at 2360 he simply
16:34types in the high of the bar to go to
16:3623.59
16:37let's say there's stops at 55. the
16:40dealer goes man we got stops at 55 let's
16:42hit 59 and clean the board
16:45remember i told you his third objective
16:47is to hit the stops and clean the board
16:50this is how he's capable of doing that
16:55okay let's say there's pending orders at
16:572350 or 23
17:0048 on the low side he doesn't want to
17:02activate those orders because he might
17:04end up retracing going back down
17:06he will make the low 23.52 and leave the
17:08pending sitting there
17:09and not absorb those orders because he
17:10doesn't want the negative drawdown
17:16okay these tools
17:22give the dealer an edge
17:26an understanding that these are out
17:27there switches the edge back in your
17:30favor
17:34they know who's in margin trouble ever
17:35do something stupid and lift your stop
17:37and get yourself flashing red and
17:39red and black back and forth because
17:40you're on the edge of margin
17:44he knows this he has the whole list of
17:46who's in call out trouble
17:48it's on his desktop there's a trade
17:51designed
17:53called the straightaway which i'll
17:54discuss here this week
17:56to finish these guys that are on the
17:58fence and call them out and take the
18:00balance of their account
18:03it's up to you to know
18:07the call out level of your dealer you
18:10guys that are overseas
18:12certain dealers have a zero percent
18:14margin call that means they could take
18:16every penny from your account some have
18:19a 25 some have a 50.
18:23they could even take
18:26the front side margin that you're using
18:29to hold your positions open
18:33you need to understand this
18:37understand that when the traders are in
18:39trouble and these margin call levels are
18:40on the fence
18:42the dealer will issue a straightaway
18:43trade to finish these people off
18:46and that's where the straightaway trade
18:47comes in and that is the only reason it
18:49comes in is to take the money from the
18:51traders
18:52that are on the fence and flashing red
18:53in their account
18:58someone's asked me if i said something
19:00about fxcm do you work for them because
19:01if you do then i won't say it again
19:09all right i had to get a sip of diet
19:10coke there
19:13market makers manage risk against the
19:16open positions
19:18look at the summary line on the bottom
19:19of the slide
19:22listen it's a business they're in
19:23business to make money
19:28send me an email i'll talk to you about
19:29fxcm
19:32you're in business to make money they're
19:34not in business to see you succeed
19:39you're in business to make money as a
19:40trader you're in business to make money
19:41as a dealer that's the way it works
19:44in order to trade the right way you have
19:46to be in line with the dealer
19:47and he's not going to come back for fred
19:52for his one order they're not going to
19:55move the whole market back
19:57to get ben it's just not going to happen
20:02so trading in line with these guys gives
20:04you a major edge
20:12this is every plug-in i just showed you
20:14on the account manager's desktop
20:18anyone that runs this platform has this
20:20and i'm going to show you a picture of
20:21what they're looking at in a minute
20:23or what the room looks like this is what
20:26they see
20:27they know everybody in margin trouble
20:30they know the open orders they know
20:31their open positions
20:33how much equity they have as a dealer to
20:35work with
20:40listen some of you are upset about
20:41accounts contact kim and scott at
20:43compass
20:44they're the ibs for a couple of good
20:46dealers they will get you going in the
20:47right direction
20:48all right enough said about that contact
20:49those guys at compass that's why they're
20:51here
20:52to aid you guys and getting good
20:54accounts at clean dealers
20:56okay
20:59account manager's desktop he knows
21:01everything that's going on and the
21:02accounts that he's managing
21:06you have to understand
21:10that this is what you're up against
21:15guys ever seen this before it's been
21:17floating around
21:18this is one of the rooms at ubs
21:23but ubs is not the only dealer that has
21:25a room like this
21:26each one of those guys is managing their
21:29risk
21:30monitoring their equity and taking or
21:33looking after the customers
21:42i want you to understand that this is
21:44not a game or a hobby
21:48the dealer is lying in wait for you to
21:50make an uneducated emotional decision
21:53decision such as lifting your stop loss
21:57or over leveraging your account
22:02if you've been kind of half-assed
22:03trading the business and treating it
22:04like a hobby
22:06i encourage you to take up photography
22:08it's cheaper
22:12but if you are serious and want to trade
22:14in line with the dealer
22:16and can master the principles i'm going
22:18to show you this week
22:21this stuff that i just showed you about
22:22the dealers should be irrelevant to you
22:26and unimportant if you could identify
22:28his behaviors
22:30and follow what he's doing
22:38okay
22:41okay so how we beat these guys we have
22:42to understand where they set up their
22:44moves and what's going on
22:48they make some trap moves those trap
22:50moves start at the beginning of the week
22:52sunday going into monday
22:57edwin check your you might have to log
22:59in and log back out
23:01okay look a lot of people are saying i'm
23:02having problems can you in fact see how
23:04to beat the market maker slide trap
23:06moves
23:06just throw a couple of y's up there
23:07don't go crazy
23:11okay fantastic thank you
23:15the trap moves are made the beginning of
23:16the week
23:18why they'll jam you up
23:22and hold you in open position from
23:23sunday monday
23:26the beginning of the day five six
23:28o'clock when they set up the channel
23:31the market maker spread they already
23:34have some number of jammed up traders
23:38the beginning of the session at london
23:41open and us open
23:44there was a false move
23:47to jam up the traders
23:50in both sessions and end the day jamming
23:53you up
23:56the end of the session and the end of
23:58the week
24:00friday they will make an aggressive move
24:04and pull back against that move to trap
24:06the traders into weekend carry
24:15okay i'm trying to keep it a little
24:16slower so you can write
24:18so think for a minute
24:22they make the false move at the
24:23beginning of the london session
24:28they run the trend at the end of the
24:30london session they will make one more
24:32extension which is false
24:34then pull back go into consolidation for
24:36the u.s
24:37and then possibly reverse
24:42end of the session continue with the
24:44trend
24:46beginning of the session hit that number
24:49again don't break it and come back
24:52the end of the day four or five o'clock
24:54in the afternoon or if they end the
24:55trading day at noon
24:56which a lot of times they do the price
24:59will go back into consolidation
25:03which is the end of their day and leave
25:05you jammed up into the next day
25:08now think for a minute that i've told
25:09you this that they make these trap moves
25:11at those times a day how many times if
25:14you sat there one o'clock in the
25:15afternoon all the way into the next
25:17night
25:20aggravated that there was no movement in
25:24the market
25:25you got jammed up in the consolidation
25:27zone and had to sit there
25:29until the next night london opened when
25:30something started moving again
25:39the beginning and the end of the day is
25:41defined as five o'clock new york
25:45the end of the day is five o'clock new
25:46york it's a 24 hour cycle i'm going to
25:49illustrate it for you in a second here
25:50in detail
25:54understand that the pattern
25:58presents on a larger scale throughout
26:01the course of the week
26:07okay some of you just installed the
26:08indicators i'll give you a brief update
26:10on it these double tracers right here
26:14let me grab my little ballpoint pen i'm
26:15excited okay these little tracers right
26:18here and right here
26:19these two lines this is friday
26:22this area is sunday this is monday this
26:26is the beginning of the week the double
26:28black tracer is the beginning of the
26:29week
26:36so here you have the weak beginning
26:38market makers make
26:40the aggressive move to trap the traders
26:42long
26:43at the beginning of the week and then
26:46pull the market away from those traders
26:47there's your weak beginning trap move
26:51in fact this move just played out
26:55in most majors across the board on
26:58monday
27:00they made a triple top high and jammed
27:02all the traders and the bottom fell out
27:05my traders caught that move
27:11and i know what happened on on the
27:13recent one is they made the high friday
27:15they came back hit it again in asia and
27:17at the london open stop hunt cycle they
27:19hit it again
27:20so you had a triple top high lined up
27:22with the london open
27:24yes look at the majors sunday monday
27:29okay beginning of the session
27:33right i said beginning of the week
27:35sunday monday they'll make a jam move
27:37trap to traders along for the week
27:41the beginning of the session stop hunt
27:45in both directions which triggers the
27:47pending orders
27:50right break out traders bracket this
27:56nice right there grab the pendings they
27:58pull back stops out those breakout
28:00traders they hit them again
28:02they come back don't allow them to see a
28:04profit shift the zone off of those
28:06traders
28:06game over you got whipsawed uh
28:09long and short in one session
28:14and if you don't have the guts to come
28:15back the third time and a lot of people
28:17do not
28:20you're jammed and you miss the trade
28:25okay so now you know when you're looking
28:27for the false moves end of the week
28:28here's friday
28:30right here's my double my double weekend
28:32tracer friday
28:33sunday monday okay
28:37here's friday before they end the day
28:39they spike the low
28:41pull back and the weekend consolidation
28:43shop
28:44the lower level shorts are jammed for
28:46the weekend and gotta pay rollover
28:53right to add to the beginning of the
28:55week
28:57they opened with a gap
29:00they didn't used to gap a lot in 4x
29:03a couple years ago when people got their
29:05butts kicked in equities
29:11they started flocking over here in
29:13droves to the forex market because of
29:14the leverage
29:15the ease to trade you don't have to
29:17memorize 150 000 stocks there's a
29:19handful of pairs that you can work with
29:22the forex market started sounding very
29:24appealing to people that lost their
29:25pensions
29:28now because there's more volume these
29:31guys added a gap to their arsenal
29:33against you
29:37so what i'm telling you is not so many
29:39words or in too many words
29:41don't carry your trades over from friday
29:45into
29:45sunday monday not necessary
29:49if i told you they're gonna jam you on
29:51friday and leave you trapped
29:53and you caught this m in the u.s session
29:55and you shorted here
29:56and you see the hammer to the low and it
29:58pulls back take your money off
30:00and call it a good week
30:06okay end the day and consolidation
30:11and the week off of the high 25 to 50
30:15pips
30:16to jam the traders depending on the pair
30:19and i'll talk about that in a minute
30:23okay good stuff
30:28another friday example they went up to
30:30the high
30:33friday sunday monday
30:39here's your formation here's our entry
30:40in our group this might have been a
30:42scratch because you have a big entry bar
30:43we might add a pass on that
30:46i know jim nicholson got in right there
30:48though
30:52okay if this bar is too big this is a
30:54pass this is no entry
30:58okay now here's the gap i talked about
31:02this looks like by the dips in an
31:06uptrend right
31:07so people got jammed up all in here
31:10friday they closed they stuck them
31:12because people thought the market would
31:13rally at the end of the day
31:15right whatever the whatever the
31:16philosophy is they gap down hit the
31:19stops that were all in this range right
31:20here
31:21and all these guys that were stuck long
31:23in here they gapped them right out with
31:24this
31:25hit their stops now the shitty thing
31:27about the deal that he can do about that
31:31is this
31:35if the dealer closes at a price point on
31:37friday
31:41and he gaps down 100 pips or 80 pips or
31:4450 pips and
31:45opens if your stop was five pips below
31:49the candle
31:52he gives you the fill at 45 minus 45.
31:57how can he do that i had an order in
31:59minus five or minus seven
32:03the answer is
32:06that is the first price available on
32:08sunday at the open
32:11you were filled at the first price that
32:13was available at that level
32:16so you thinking you have a nice stop in
32:18place and carrying stuff over the
32:20weekend
32:22is crap if this has never happened to
32:25you i applaud you
32:27if you thought about carrying trades
32:28into the weekend this is why you do not
32:32you don't know what's going to happen
32:33with the economy the way it is you don't
32:35know if they're going to raise the debt
32:36ceiling lower the debt ceiling fire the
32:38president you don't know what's going to
32:39happen
32:40you don't know if there's going to be
32:41some
32:43mass exodus in your in the eurozone to
32:45get out on from underneath the euro and
32:46there's burning and
32:48buildings collapsing over there you
32:49don't know if there's going to be an
32:50earthquake
32:52market makers use that crap
32:57as the opening reason to gap the market
33:00aggressively against you
33:02it's crap but it doesn't give you back
33:04your lost equity when you hold the trade
33:06over friday
33:09i've seen gaps come all the way back to
33:11the low i've seen sick stuff with the
33:12gaps
33:14so what i'm telling you is not so many
33:15words is don't carry trades from friday
33:20take what's given to you and get out
33:28okay now here's a typical week
33:34this is the structure that you need to
33:35memorize to understand the weak
33:39here's what happens you know i have the
33:41small pattern that i draw for you guys
33:43right
33:44the weak is comprised of the same
33:47pattern
33:49why you ask the answer is
33:53because the behavior is the same on the
33:56larger time frames
33:57so the market makers counter to your
34:00behavior
34:00has to be the same
34:04so what happens is this remember i drew
34:05this for you i don't know if you can see
34:06that purple
34:07stop hunt high drop pull back right
34:12that's the intraday pattern as i've
34:13illustrated for you before i'll do it
34:15again in a minute
34:18stop hunt high drop
34:22now on the bigger picture consolidation
34:26stop hunt low trap lower level shorts
34:28trigger the stops of the weak long
34:30holders
34:32run it up
34:36a big fat m which is a multi-session
34:40setup by the way the most powerful setup
34:45is the multi-session m and w
34:48what is that i'm going to show you
34:51pictures later
34:52but here's one for you right now the
34:53definition of a multi-session m or w is
34:57simple
34:59market makers hit a level
35:04they repeat the level in another session
35:08or another day
35:11this example here is wednesday market
35:14makers made the high of the week
35:16the how the how right
35:22they came back near the how but failed
35:26to break it
35:28because they had trapped volume or
35:30pendings at that area
35:31that if they come back and repeat the
35:33level
35:34the traders are released
35:39okay what are you talking about they
35:41release the traders how many times have
35:43you been in a trade
35:44and said if it gets back to break even
35:47i'm getting out
35:49if it gets back to minus five i'll take
35:51my lumps and get all my life
35:56how many times have you said if it comes
35:58near where i got in
36:00i'll just take what i can get and be
36:01happy i didn't blow my account
36:05if you said those things to yourself
36:07you're not alone
36:09this typical m w behavior is based on
36:13that mentality or psychology
36:17the traders that think like that because
36:21they don't understand the market
36:23put their pending orders in around here
36:26to get out at breakeven they'll put
36:28their take profit at plus one zero
36:30minus two just to get their money back
36:33and be out
36:35when market makers come near the level
36:45they don't allow that volume to release
36:48be released back into
36:50your accounts they don't want to release
36:53it back into the wild think for a minute
36:55if there's 500 million dollars at
36:56wednesday's high or the high of the week
36:59they're not going to break the level
37:00they're going to come near it
37:02because remember i told you they're so
37:04greedy
37:06they got to grab whatever money's still
37:08there and then they'll shift away
37:12for three days
37:16the market is based on a three-day
37:18three-level cycle
37:22write this down the market is based on a
37:25three-day three-level cycle
37:33market makers will trap lower level
37:36shorts higher level longs and make a
37:39unidirectional swing for three days
37:44or three levels
37:50if you look at this example that's up
37:52there you have a false move weak
37:55beginning
37:55which is a variation on the pattern stop
37:59hunt high
38:00coming out of friday which if you notice
38:02this is exactly what happened this week
38:05they hit it hit it again asia hit it
38:07again london open bottom fell out
38:12okay now
38:17they then repeated this behavior on a
38:19two-day cycle
38:21stop hunt low jammed the traders run
38:25this run was made three levels or two to
38:27three days approximately
38:30the midweek reversal which there's a
38:33midweek reversal almost every single
38:34week
38:38you can have multiple levels in one day
38:40yes that would make it a two-day cycle
38:45now wednesday they put in the midweek
38:47reversal like clockwork right here
38:49they trap for the high of the week they
38:50repeat the level but fail to break it
38:53the spread opens up to pick up any
38:54pending orders on the other side of
38:56wednesday's high or the high of the week
38:59if you notice something the highs of the
39:02week
39:07will coordinate with the stop hunt
39:10triggers
39:12at the beginning of the sessions
39:15think this is a stop hunt high trap for
39:19london
39:21they repeat the same stop hunt in the
39:23u.s session
39:25two sessions formed out in the middle of
39:27the week at wednesday
39:29after two and a half days of rise at
39:31three levels looks like a midweek
39:33reversal to me
39:37you then get a unidirectional swing
39:40unidirectional meaning one direction a
39:43unidirectional swing
39:46for three days
39:49my friend david geon and bruce from new
39:52york
39:52would have caught this as a swing trade
39:55and maximize their gains looking to exit
39:58this trade
39:58friday u.s session why
40:03friday's the last session of the day we
40:05know the low would probably come in
40:06between 9 and 10
40:08or 9 and 11 in the morning at the
40:11session changeover the reversal comes
40:14so we look for the low of the day london
40:16to look for our exit
40:17we get the spike a repeat of the level
40:20and into consolidation to end the week
40:22if you are a swing trader that is your
40:24exit
40:28level one level two
40:31level three three levels of drop spike
40:34the low and the consolidation
40:36lights out couple hundred pips in your
40:37pocket
40:41the pattern that i'm going to draw for
40:43you and illustrate for you
40:48is observed intraday intercession
40:53and intra week it also plays out on the
40:58dailies
41:00and the four-hour chart but for our
41:03purposes here
41:04we're looking for intraday swings and
41:06spot trades only
41:09this information will help you in your
41:11larger term charts and any other market
41:14that stuff can be traded
41:23okay here's a typical weekly market
41:26structure
41:28as i've just discussed it with you but
41:30illustrated again on a different chart
41:32false move weak beginning spike the low
41:35spike the high
41:36into consolidation
41:40accumulate and evaluate
41:43market makers accumulate and evaluate
41:46i hit the high hit the low picked up
41:47some pennies what do i got
41:50i i spiked high again what do i got i
41:52spike low what do i got
41:54accumulate and evaluate steve what are
41:58they evaluating how good of a trader i
41:59am no
42:00they're evaluating the contracts and the
42:03money
42:05how it straddled over their spread
42:07that's all it's about
42:09the business is about the money
42:16now you have a false move
42:19spike the low the v3 is vector three
42:22candles i'll talk about that in a minute
42:26there's the big fat w formation
42:29spike the low pull back hit it hit it
42:32again jam up the traders
42:34validate the short sellers averages are
42:36open this is a down cycle in any other
42:38textbook except mine
42:44straight rise in the consolidation stop
42:46hunt low rise
42:49next night stop hunt low rise
42:54next night grab some pendings stop hunt
42:58low
42:58rise rise big
43:0233 trade another trade we're going to
43:03talk about
43:05a 33 trade
43:08is a setup i'll lay the rules out for
43:11you
43:13on day three of the third level
43:16you have an intraday three level rise
43:21that trade will absolutely lead to a
43:25reversal
43:29think about from the market maker
43:31perspective for a minute
43:35every time a retail trader buys
43:40a market maker must in fact sell to him
43:43to provide the liquidity
43:46they are not pairing you up lou in new
43:48york
43:51with in new jersey they're not doing
43:54that
43:58they're managing their risk by
44:00offsetting that
44:03by taking some buys and some cells to
44:05manage their risk
44:07but they are not going oh let's see lou
44:09wants to go long let me find
44:11pete in southern california looks like
44:13he's a seller
44:14let's match those two guys up and let
44:16them hold hands and go against each
44:17other that's not what's going on here
44:20that is a marketing ploy
44:24and it is pure excuse my french
44:31the dealer the reason you get filled so
44:33quickly
44:34the dealer takes the other side of the
44:35trade he has some shorts and some buys
44:39that's just the way it is
44:43the short sellers offset his open long
44:46equity
44:48the long holders offset his short equity
44:52it balances
44:57thanks russ forgot what language it was
44:59okay so now
45:00keep in mind the three day cycle day one
45:04day two day three
45:07you have three levels of intraday rise
45:11after the stop hunt
45:15the reversal is imminent
45:20i just was talking about market makers
45:21equity he's not unlimited here's what he
45:23does
45:26you're a retail trader you buy i sell to
45:29you
45:30day two you buy again
45:33i sell to you again day three
45:37you buy i sell to you again
45:40i look at my books and i am getting a
45:43little low on equity
45:44i need to get some back your net long as
45:48a trader
45:50or as a collective group of traders
45:52market makers are net
45:54short how do you get paid on net
45:57short correct the market to get your
46:01money back
46:02on aggregate at level three
46:06market makers go the heaviest
46:12on the retracement market makers are
46:16rewarded
46:19and pocket their money
46:22and the cycle repeats
46:26okay so now look at the week false move
46:29weak beginning trap to traders
46:31evaluate what do we got you know what
46:34the averages are showing down
46:36we got some traders trapped long we're
46:38net long right now let's make the false
46:39move induce everybody to go short
46:42what is perceived in the marketplace
46:45from retail traders
46:46as momentum is actually
46:50and has always been
46:53the move by the dealer to trigger the
46:55stops
47:01when you see an aggressive move quickly
47:03and fast like that
47:06that is a move to trigger the stops it
47:09is done on less volume
47:14and it gets the traders look at think
47:16look at this from a technical standpoint
47:18cover this whole cover that this is what
47:20you have in front of you
47:22you have an aggressive vector three or
47:24three candle aggressive move down
47:25momentum
47:26breakout traders might have been
47:27rewarded on this deal because it's 100
47:29pip drop
47:30the averages are open and cross down
47:32that's a technical short
47:34everybody fell for this market makers
47:36applied the brakes
47:37lower level short holders snatched it
47:39away went into consolidation in here
47:42that consolidation at the lower level
47:45builds short contracts
47:47from the amateurs
47:50that sell the rises in a downtrend
47:53sell the rallies in a downtrend that's
47:54how the textbook goes
47:57that move selling the rises in a
48:01downtrend jams up
48:03the majority of retail traders short
48:08now remember i told you there's a trade
48:10designed
48:11to get everybody in margin trouble
48:15and to keep them jammed that is called a
48:18straightaway and it comes out of level
48:20one
48:21it is right here on the chart okay see
48:23the marking it's right here
48:26here's what happens you sell the rallies
48:29in the downtrend
48:30you sell the bounces off the moving
48:32average right not understanding the
48:33cycle
48:34these are short move continuations for
48:36retail traders
48:38short move continuation for retail
48:40traders in here
48:42they have some number of people
48:45in margin trouble right there and some
48:46number tracked
48:52those traders are now stuck
48:55market makers are counting on you to
48:57make an irrational decision
48:59the irrational decision being lift your
49:03stop
49:04scale in the wrong way to a contract add
49:06orders to it average down average up
49:08average sideways whatever you want to
49:10call it
49:11they're counting on this
49:14they then at the beginning of the asian
49:17session
49:18shift the zone away from those traders
49:20quickly see it
49:21four straight rise green bar
49:25they then go back into consolidation to
49:28accumulate
49:29more short selling
49:33they push down but they don't go past
49:36all these levels they don't go past the
49:40levels because releases the short
49:41traders
49:42that want to get out with plus one plus
49:44five plus ten and get their money back
49:46that have been down all night
49:49what's anticipated at a level one after
49:51an aggressive w
49:52formation is a straight rise
49:56this is the day
49:59that most of the breakout traders will
50:01get rewarded
50:03this example they threw a small stop
50:05onto the low and stopped out the short
50:06pendings
50:07but the long pending side was rewarded
50:12and if you notice when they come out at
50:15london
50:15it's a monster move straight green
50:17candles right out of the box
50:20why the aggressive behavior
50:27gets everybody into a panic that is net
50:29short
50:33or in a short position with multiple
50:35orders or big contracts or whatever
50:37you're trading
50:38that aggressive move pulling away from
50:40the low of the weak
50:41pulling away from the low of the week
50:43jams all this volume in here
50:50and jams them up
50:55some people are asking what dnc is it's
50:57a new term
50:58it's just simply what i say and i wanted
51:00to remind myself of that thank you
51:01whitney
51:03do not counter trend trade coming out of
51:06level one
51:10do not counter
51:14countering coming out of level one
51:20will jam you up because we expect
51:23straight rise
51:28because market makers got to get those
51:30contracts and hit the triggers of the of
51:31the people that are stuck
51:34don't counter that's the place i don't
51:36want you to counter
51:38anywhere else it's okay when i say
51:41counter trend i mean counter trend
51:42market maker trend
51:46okay next night we expect this stop hunt
51:50low rise
51:51the next night we expected stop hunt low
51:53rise they tricked you out with a little
51:55false move
51:57but you got your stop hunt low pins to
51:59the mayonnaise
52:01rise notice how when you get to
52:05level three after the rise
52:11the big candles or the aggressive stop
52:13hunt candles
52:15turn to the top side here
52:19and here
52:22they are now trapping long holders
52:30understand
52:34they are trapping traders long now
52:39you guys just hang in there just write
52:41down mayonnaise we'll talk about it
52:46as a trader i had a diet coke but seven
52:48diet coke
52:50you gotta understand how to read the
52:52moves and understand what's going on in
52:54the market
52:56where the trap volume is what the market
52:58maker is doing
52:59how he's jamming up the traders
53:04that is why it is not necessary to
53:07analyze your charts all the way back to
53:10kingdom come in february of 07 i mean
53:131907
53:14that people that follow technicals do
53:19reading the market maker over the last
53:21three to five days at the course of a
53:23week
53:24will give you a directional bias
53:27identify
53:28where the volumes are trapped and where
53:30the retail traders are stuck
53:33and you will have your directional
53:36identify the midweek reversal
53:40tuesday wednesday or thursday it's
53:41coming in
53:43mid week sunday monday tuesday reverse
53:46wednesday thursday drop
53:48rai sunday monday
53:52make a big fat m drop tuesday wednesday
53:54thursday and friday and pull back
53:57this is the cycles you have to be able
53:58to walk up to a chart
54:01and identify
54:05our group of traders that understands
54:07and saw the sell-off coming when they
54:08hit the high three times
54:11on sunday night going into monday
54:17when market makers take the trouble to
54:19go back a third time to a level and
54:21don't break it
54:24the correction is imminent when market
54:27makers go back a third time repeat the
54:29low of the day the rise is imminent
54:34they didn't go back to the level because
54:36they felt sorry for you want to let you
54:37out of your trades
54:39they went back there a third time
54:43because there was so much freaking money
54:45down there they couldn't stand it they
54:46had to come back and grab it
54:50if you understand that and start
54:52understanding the other side
54:56of the chart not the side that you see
55:01the side that they are showing to you
55:04and start to think
55:05like they think you will start to have
55:09success in the business
55:11and if you get it quickly a light bulb
55:14will go off it'll be almost immediate
55:18you must anticipate when and how these
55:22moves will present themselves
55:24the timings i'm going to talk about the
55:26session starts session ends
55:28the brinks trade
55:32i will cover all of this for you
55:37you can truly beat the market maker by
55:41simply trading in line
55:42with his behaviors
55:48for you new guys
55:51because in the session changeovers
55:55we anticipate a reversal new york
55:58reversal part of the cycle
56:00i want you to start to look to take your
56:02profit if you're a london trader
56:04you need to enter in the london open and
56:06be out by the end of the session
56:08if you're a new york trader i want you
56:11to look to make your entry between
56:138 and 11 9 30 we'll talk about that
56:17look to be out by 12 1 o'clock in the
56:19afternoon
56:21when your take profit is hit or when the
56:24market comes to rest into consolidation
56:25to trap the traders for the next day
56:28you take
56:33if a trade does not see substantial
56:37profit in two hours
56:41take your profit or a small loss this is
56:44not
56:44negotiable
56:50why
56:53if you see a perfect w formation or
56:55setup
56:57and it doesn't move in the profit within
56:59two hours
57:02upon further analysis by the market
57:05maker the contracts were not straddled
57:09in the configuration that he had hoped
57:11for
57:13this lack of configuration forces him to
57:17hold the level
57:18beyond the two-hour mark to accumulate
57:25the accumulation phase
57:32on an extended period of time
57:36could lead to another stop hunt against
57:38the original position you thought you
57:40had
57:41correct
57:44save yourself the pips take a minus
57:47seven plus five
57:48plus two minus three scratch yourself
57:52out
57:54and get on with your day example
57:59level one consolidation okay we had a
58:01three a three hit to the high in the gbp
58:03crosses
58:05they went high one more time at the
58:07london open to validate the long holders
58:09to make them feel good about themselves
58:10warm and fuzzy
58:13the bottom fell out
58:16today they showed what appeared to be a
58:20w
58:21going into the red box there's no chart
58:24up here i'm talking take notes
58:30market makers extended the consolidation
58:33zone
58:34and did not rise much off the load today
58:37they then hit it again
58:41why three levels wasn't seen
58:45they needed one more hit to the low to
58:48hit their goals to reach their
58:50targets sam nice to see you here buddy
58:57if the second leg presents let's say you
58:59took a v bottom
59:00let's say you took stop hunt low three
59:02candles to the low and pull back and you
59:04took that trade
59:06if you're in that train you're counting
59:08two hours
59:09and say an hour and forty five in it
59:11paints a second leg
59:15and it pulls back restart the clock
59:22the two hours is not negotiable
59:25don't come back and go i waited five
59:27more minutes because i don't want to
59:28hear that
59:30if they don't move in two hours the
59:31criteria or setup for which you took the
59:34trade is broken down
59:35they got something else going on their
59:37contracts aren't straddled right
59:39they're going to make another stop on a
59:40remove
59:42sometimes you'll take it off and you go
59:44damn i had it right
59:46sometimes you'll take it off and go
59:48ahead stop on it again
59:50the reason for our setup or the criteria
59:53which you took the trade on is now
59:55broken down
59:56it becomes a 50 50 gamble we are not in
1:00:00the 50 50 gamble business
1:00:02go to the nearest indio indian casino if
1:00:05you want to gamble
1:00:10your job is to take high probability
1:00:12setups
1:00:13based on market maker behavior he shows
1:00:16you an action
1:00:17you react to it he showed you stop hunt
1:00:20low
1:00:20you buy against the retail trend take it
1:00:22long
1:00:24he comes back to the level but doesn't
1:00:26take out the low the trade is still
1:00:28good long start the clock over he holds
1:00:31the second leg at plus five and goes
1:00:33into consolidation for two hours
1:00:34you scratch the trade and give yourself
1:00:36a break
1:00:40okay that's the rules they're not
1:00:41negotiable write them down
1:00:48there are three market makers
1:00:51strategically positioned around the
1:00:52world
1:00:53one for each time zone some have five
1:00:55desks some have three desks
1:00:59but for the most part they work about
1:01:02six to eight hours a day
1:01:04here's the difference you're one guy
1:01:08you put your trade on you lift your stop
1:01:10you sit there like a and nurse it
1:01:12for three four or five days
1:01:14these guys go about their business
1:01:15they're unaware of the suffering that
1:01:17you're putting yourself through
1:01:19they're unaware of the fact that you've
1:01:20been drinking red bull punching your
1:01:22wife every day because you're in the
1:01:23wrong trade and sitting there like an
1:01:25idiot
1:01:25waiting for it to come back
1:01:29if you get jammed up at the midweek
1:01:31reversal
1:01:32you can forget it for three to five days
1:01:36if you get jammed up at the midweek
1:01:38beginning or the false move week
1:01:40beginning on sunday monday
1:01:42you can forget it till wednesday or
1:01:44thursday
1:01:47they don't come back to the levels
1:01:51to release the traders because that's
1:01:52how they make their money
1:01:55so if you sell into the stop hunt down
1:01:57you got two to three days of rise before
1:01:59you're gonna even see a chance of
1:02:01getting out
1:02:03if you buy at the high of the week
1:02:04wednesday when they make the first leg
1:02:06of the
1:02:06the wvm and you buy long at the top of
1:02:09the worst possible place
1:02:10which people do by the way there's a
1:02:13whole system based on that by a guy
1:02:15named
1:02:15i don't need to say it he takes the
1:02:18breaks of the highs and the lows
1:02:20i promise you it's not a profitable
1:02:22system you don't need to waste your time
1:02:26if you buy at the worst possible point
1:02:28on the chart
1:02:29unidirectional swing dragging you to
1:02:31friday into the weekend
1:02:32sorry about your luck buy some red bull
1:02:34because you ain't getting out
1:02:39our job in this group in this room of
1:02:42traders
1:02:43is to identify those extreme points on
1:02:45the chart
1:02:47take them in the right direction against
1:02:49the herd
1:02:50and convert a spot to a three-day swing
1:02:53or maximize your gains by following the
1:02:55market maker bias
1:02:58that's it that's the job know it sounds
1:03:02too simple
1:03:03but when you can understand what they're
1:03:05doing on the chart it really is
1:03:09so keep in mind when you become
1:03:10exhausted all they do is come in change
1:03:13shifts talk to each other
1:03:14they get started with a fresh set of
1:03:15objectives and targets and you're
1:03:17sitting there like a nut case
1:03:19hoping you don't burn your account down
1:03:25that's why you've been struggling in
1:03:26this business
1:03:29i showed you an army of traitors against
1:03:30you in a room
1:03:32that unless you understand them you
1:03:34really have no chance
1:03:38this week i will change that for all of
1:03:42us
1:03:45all right this is just an example to
1:03:46show you the desks if you look right
1:03:47here
1:03:48they got uh one two
1:03:52three four five desks
1:03:55they got some pretty good coverage man
1:03:58they're up
1:03:59chicago new york london hong kong san
1:04:01francisco
1:04:02how are you one human being gonna trade
1:04:06against five desks
1:04:07that are all fresh feeling great come in
1:04:09in their suit
1:04:11drive to work in their bentley
1:04:12convertible
1:04:15and you're exhausted sitting there
1:04:16nursing a trade
1:04:20trying to get what you had back it's
1:04:22very tough if you don't understand
1:04:26all right same thing here's their
1:04:28coverage
1:04:31three desks
1:04:34see them
1:04:37one for each time zone one for each
1:04:40session
1:04:42okay an extended rise by the market
1:04:45maker
1:04:46of three levels
1:04:49the levels are not going to be stair
1:04:51step but when they are it's game over
1:04:55the levels can be described as bursts or
1:04:58movement in price
1:05:02if you notice something about the charts
1:05:04they will have an aggressive move
1:05:07in the consolidation an aggressive move
1:05:10come into consolidation
1:05:11an aggressive move come in the
1:05:12consolidation
1:05:16the consolidation zones are put there to
1:05:18trick you and i'll talk about it
1:05:21an extended rise of three levels will
1:05:23always bring a correction
1:05:25think a market maker lent out his money
1:05:29lent out his money lent out his money
1:05:31i'm running out of money i need
1:05:32some back
1:05:34correct on the drop
1:05:39i buy from the sellers buy from the
1:05:41sellers buy from the sellers
1:05:43man i'm running out of money i need some
1:05:44back let's get a quick rise out of here
1:05:46get my orders back on the counter trend
1:05:50trades
1:05:52the 50 ema should be used
1:05:56as your take profit
1:06:01the 200 ema which lags and will be about
1:06:04the middle of the range
1:06:06will offer the second take profit
1:06:09the middle of the range is known as the
1:06:1150 fib
1:06:13all you have to do is subtract the high
1:06:15from the low and divide by two
1:06:18take the high number minus the low the
1:06:21high of the day
1:06:22whatever that price is minus the low of
1:06:24the day
1:06:26gives you 100 pips to make it easy
1:06:29100 pips divided by 2 is 50. if the
1:06:32price is moving down
1:06:35add 50 pips to the lod low of the day
1:06:37that's your fib retracement
1:06:44okay
1:06:47okay i'm going to talk about the cycle
1:06:49that i talked about in my presentation
1:06:51but i'm going to be much more detailed
1:06:54and we're going to go over that after
1:06:55the break
1:06:56let me finish this slide actually i'll
1:06:57break here it's a good place to break
1:07:03all right i'm back hope you guys are
1:07:04doing okay is seven minutes long enough
1:07:07we're gonna do is i never really went
1:07:09over the agenda tonight we'll do uh
1:07:12do seven-minute bathroom breaks every
1:07:13hour and then uh
1:07:16we'll do about a half hour break around
1:07:18eight eight thirty something like that
1:07:19now it's already seven twenty so maybe
1:07:21eight thirty enough for you to grab a
1:07:23little something to eat
1:07:25and then uh we'll finish out the night
1:07:27and we'll have one more seven minute
1:07:28break and
1:07:28we'll go through okay that's pretty much
1:07:30how i lay it out that's the same way we
1:07:32laid out for the live venue also
1:07:35okay hey mike how are you doing it's
1:07:38nice to see you all you guys nice to
1:07:40have you here
1:07:43okay i left off talking about the
1:07:46pattern
1:07:48i'm gonna draw for you just like i do in
1:07:50the presentation but i'm gonna be much
1:07:51more detailed
1:07:52and i'm gonna cover the market timings
1:07:54which are very important
1:07:56take notes the first two days
1:08:02and now especially i'm going to lay out
1:08:04the structure
1:08:05and the behavior that these guys do
1:08:09then the last two days we're going to
1:08:10break it down and help you to identify
1:08:12it on the chart
1:08:16so what i'm saying is the first two days
1:08:18are vital
1:08:19the chart stuff you've been trading is
1:08:21going to be easy for you
1:08:23the trick is to dump your old baggage
1:08:30and open your mind to the next couple of
1:08:31days of material
1:08:33and allow it to settle in and sink in
1:08:35and become part
1:08:37of how you think or how you know the
1:08:39market works out
1:08:40okay all right so look i talked about
1:08:43the daily setup there's the accumulation
1:08:44phase
1:08:45they set the initial high and low the
1:08:47ihod and the
1:08:49ilod the initial high of the day initial
1:08:52low of the day
1:08:53okay write these terminologies down the
1:08:56stop hunt we call
1:08:57sh abbreviated is the false move
1:09:01against their real intentions that is
1:09:04the move
1:09:06that for years people that
1:09:10didn't know me and know me now thought
1:09:12was momentum as breakout trading
1:09:14when they saw the spike the aggressive
1:09:17move they thought that was the breakout
1:09:18i thought that was momentum in the
1:09:19marketplace
1:09:26some people want to print the slides off
1:09:27the screens look we're grown
1:09:30i can't stop you from recording and
1:09:32doing stuff
1:09:35i don't issue a textbook because i don't
1:09:37want the stuff floating
1:09:38around in the form of a book
1:09:43if you do something like that i don't
1:09:44first of all don't want to hear about it
1:09:45and second of all please respect
1:09:49the student agreement and my wishes
1:09:51don't let this stuff show up on the
1:09:52internet
1:09:55okay all right
1:10:00yeah i'm sorry man i'm supposed to make
1:10:01it full screen go back in the slideshow
1:10:03mode i don't know what i was thinking
1:10:04thank you
1:10:04for reminding me okay all right
1:10:08so the stop hunt is the false move
1:10:09against the real intentions what
1:10:10everyone perceived
1:10:12in regular technical land or regular
1:10:14technicals
1:10:17as momentum in the market but is in fact
1:10:19a trap move
1:10:20to get the traders to validate the wrong
1:10:22way
1:10:25the real move in the forex business is
1:10:28slow
1:10:30slow and steady rise slow and steady
1:10:32drop
1:10:34if you've ever been in the right move
1:10:36with the wrong position
1:10:40it just seems like it goes on forever
1:10:42and ever and drops and you start drawing
1:10:45i don't know people tell me i draw a fib
1:10:46i hope it holds it goes through it i
1:10:48draw a support line
1:10:49it doesn't hold i draw a trend line it
1:10:51doesn't hold it's a slow and steady
1:10:53relentless move
1:10:56because market makers are all in
1:11:02it's on all their volume they're
1:11:03aggregated all in
1:11:07and that slow and steady rise or slow
1:11:09and steady drop
1:11:11then booking a profit
1:11:15market makers always end the day off of
1:11:17the low or the high
1:11:1925 to 50 pips and go back into
1:11:22consolidation to trap the traders
1:11:28gerald it is what it is man
1:11:33okay now there's some other nuances in
1:11:35here that i want you all to
1:11:36to write down
1:11:40i'm going to try to draw on on go to
1:11:42meeting if not i'll switch to paint
1:11:46okay keep in mind i failed third grade
1:11:48art
1:11:53okay let's start here 5 p.m most dealers
1:11:58reset the high and low okay some of you
1:12:01seen this already some of you seen it
1:12:03but
1:12:03in the presentations but you have not
1:12:05seen it to the detail that i'm going to
1:12:06give it now
1:12:07so be patient with me take notes
1:12:11this drawing is the entire business
1:12:15in a nutshell so if you were
1:12:19texting on your phone you got the tv in
1:12:21the background if you pay attention to
1:12:22anything pay attention to the section
1:12:265 pm the high and low reset market
1:12:28makers make the quick push right
1:12:3015 to 25 pips up 15 to 25 pips down and
1:12:34consolidate
1:12:36this initial move sets the initial
1:12:40hod the initial high
1:12:43of the day
1:12:49all times are 5 p.m new york time all
1:12:52times at eastern standard new york okay
1:12:54nyc time sorry about that
1:12:58okay this move also sets
1:13:01the initial low of the day you craig
1:13:04harris guys call this the tokyo channel
1:13:07it's simply the market maker spread
1:13:12okay they trade in between this range
1:13:19accumulating contracts
1:13:23anytime you see sideways movement in the
1:13:25market
1:13:27it's not congestion i've heard it called
1:13:30so many different things it's funny
1:13:32you don't have a chest cold when you're
1:13:33trading it's not congestion
1:13:35it's not a traffic jam
1:13:38anytime market makers hold the level and
1:13:40move sideways
1:13:42they are hitting the stops inducing
1:13:44traders to take a position
1:13:48and collecting contracts for their
1:13:50pocket
1:13:51that is it there is no other explanation
1:13:54for it
1:13:59other than what it is
1:14:02okay now between five and eight pm
1:14:07new york closes at five o'clock
1:14:10there is thing i've heard called dharma
1:14:13it's the dead time in the market
1:14:15there is nothing going on a lot of
1:14:18traders
1:14:19use this time to scalp the market with
1:14:21robots
1:14:25because it just kind of chop sideways
1:14:35let me illustrate this then we'll talk
1:14:36about questions from five to eight
1:14:38there's absolutely nothing going on the
1:14:40market
1:14:40all exchanges are closed
1:14:44from 8 to 8 30
1:14:49pm
1:14:52there's a thing called gap time all
1:14:56times in eastern new york
1:15:00gap time is when the market maker comes
1:15:04on duty
1:15:08and he gets his instructions for the day
1:15:12from the powers that be of what he's
1:15:14supposed to do
1:15:20man i wrote 8 p.m twice it's 8 30 sorry
1:15:228 30 p.m
1:15:238 30 8 30. all right
1:15:27the market opens the asian session opens
1:15:29at 8 30.
1:15:35okay what takes place in gap time
1:15:40hey what's going on today i got long
1:15:42holders trapped high on the aggregate at
1:15:44129.27
1:15:46i need you to hit the stops pick up some
1:15:47pending orders over there and i want
1:15:48price down at 125.35 by the end of the
1:15:51day
1:15:51by the end of your session will do got
1:15:53it
1:15:55hey i got 600 million dollars in open
1:15:57float we're a little uh
1:15:59out of shape with our our equity i need
1:16:01you to hit the stops and even some of
1:16:02that out
1:16:03i need you to get it down to about 400
1:16:05million in open float because that we
1:16:06can handle that our equity pool's
1:16:07getting out of whack
1:16:13it's not 8 pm in tokyo it's the morning
1:16:15over there i don't really know how it
1:16:16the times convert over there it's 8 pm
1:16:19new york city to 8 30.
1:16:21market maker gets his instructions
1:16:25he goes to work now
1:16:29he also is told
1:16:33that he has to continue to accumulate
1:16:36collect the contracts balance out the
1:16:37books whatever it is most of the time
1:16:39the accumulation phase goes through the
1:16:41asian session
1:16:44on a perf in a perfect world the
1:16:46accumulation happens all through asia
1:16:48breaks out london starts to move
1:16:50continues reverses us and goes back into
1:16:52consolidation
1:16:53but if it was that simple
1:16:57there's a lot of smart people out here
1:16:59craig almost figured it out
1:17:01people would figure it out
1:17:06so with that being said
1:17:09they change the session times when the
1:17:12moves occur to keep people
1:17:14confused and
1:17:17unable to figure it out that's all it is
1:17:19by switching times
1:17:22they throw people off nuclear reactor
1:17:24blew up let's move the end pairs today
1:17:27during the asian session duh
1:17:30nothing going on let's hold it let's not
1:17:32move until the u s
1:17:37okay they will hold the swing
1:17:44through the session until about
1:17:47one to two a.m
1:17:55okay now here's what happens
1:18:02at the start of the london session
1:18:07the first move is to pick up the
1:18:09pendings and destroy the breakout
1:18:11traders
1:18:12some of you guys have heard of the
1:18:14frankfurt power hour
1:18:16there's no such thing as
1:18:21what they do is they widen the swing
1:18:24early
1:18:26frankfurt time and pick up the pending
1:18:29orders validate any fib patterns
1:18:33and they take those guys out
1:18:38in an ideal world between 3 and 4 a.m
1:18:433 30 being ideal between 3 and 4 a.m
1:18:48they make an aggressive move in this
1:18:50example towards the high
1:18:52and extend the initial high of the day
1:18:55that move
1:18:57is comprised of three individual pushes
1:19:05one two
1:19:08three remember i told you about the
1:19:11number three in the presentation
1:19:13three is a psychological barrier
1:19:17for human behavior
1:19:21you've been saying it all your life
1:19:22things come in three three strikes
1:19:24you're out
1:19:26if someone dies they go one more right
1:19:28it comes in threes
1:19:29you've heard that crap all your life
1:19:32we're programmed as people
1:19:34psychologically
1:19:37to procrastinate and to hesitate
1:19:41the three pushes
1:19:44insures the market maker
1:19:48that you will in fact chase that trade
1:19:52the three makes you do things
1:19:58based on your human psychology fear and
1:20:00greed and things that drive the market
1:20:02ensures that you will take the wrong
1:20:04position it's dirty
1:20:07but that's why they do it because it
1:20:09works
1:20:14here's what happens you're standing
1:20:16there
1:20:18and you see the thing push right out
1:20:22it pulls back you know maybe it's going
1:20:24long today
1:20:25they hit it again bam they extend the
1:20:28high again
1:20:29you go damn look at euro it's going up
1:20:31today i'm missing it
1:20:34they hit it a third time
1:20:38the third time
1:20:42makes you realize that you're missing
1:20:44the trade
1:20:45and you want to get on and you buy at
1:20:48the worst possible point in this
1:20:49scenario
1:20:51you place your orders in here
1:20:56okay this action goes on around 2 30 2
1:21:0045
1:21:003 o'clock when they get those orders
1:21:04hot validated and piled on they
1:21:08quickly pull off
1:21:1220 to 25 pips and i'll go over this
1:21:14again just this is very important part
1:21:16of the business pay attention
1:21:17they'll pull back quickly
1:21:21they repeat the level but fail to break
1:21:23it
1:21:27they fail to take out the high of the
1:21:29day they might throw a wick above it
1:21:31that's acceptable
1:21:33the wick grabs the orders
1:21:39they will then pull away
1:21:43and go into consolidation they
1:21:46shift the zone away from all this work
1:21:49in here
1:21:55the london session starts
1:21:58at 3 30 p.m eastern time new york
1:22:04the asian session ends at 3 a.m
1:22:09steve that doesn't line up
1:22:12the gap time from three to three thirty
1:22:17is when the asian market maker discusses
1:22:22his moves with the london guy that's
1:22:24coming on duty now
1:22:29the london guy receives his marching
1:22:31orders
1:22:33from what asia was able to accomplish or
1:22:36not accomplish
1:22:37and what needs to happen to keep the
1:22:39bank liquid and making money
1:22:46when they pull away and go into
1:22:47consolidation
1:22:50the traders are jammed up that are
1:22:54traded along above here higher level
1:22:55long holders are jammed
1:22:59they will then make three levels of drop
1:23:13okay
1:23:17ask me to repeat the 3m time no problem
1:23:19the changeover the asian session ends at
1:23:213 a.m
1:23:25the london session begins at 3 30.
1:23:31am new york time
1:23:34eastern daylight time whatever the hell
1:23:35we're on right now okay
1:23:39the gap time is from three to three
1:23:41thirty
1:23:42from three to three thirty you might see
1:23:48a stop
1:23:49trigger you might see them put in the
1:23:50second leg
1:23:54or start making the second leg there's a
1:23:57trade that we call the brinks trade and
1:23:59i'll illustrate the rules for you but i
1:24:00want you to understand
1:24:02the brinks trade is when the second leg
1:24:05of the m or w is formed on the 345
1:24:10candle okay write it down
1:24:14the brinks trade
1:24:17is when the second leg m or w
1:24:22could be a v bottom two but for analysis
1:24:24go m or w
1:24:27is formed on the 345
1:24:31candle what the hell you talking about
1:24:34steve
1:24:36false move end of session price
1:24:39rises as we go into the end of the
1:24:43session
1:24:45in asia
1:24:48it makes a false move session beginning
1:24:52issues a spike to the high and will
1:24:55close on a hammer
1:24:57at 3 45 false move
1:25:00session beginning
1:25:05the reason that we call this a brinks
1:25:08trade
1:25:10is because we're so certain it will pay
1:25:12out you can back up the brinks truck on
1:25:14it
1:25:16there are two brinks trades a day i will
1:25:19illustrate them for you here
1:25:22all pairs any pair if you get second leg
1:25:26mrw issues a hammer at 3 45
1:25:29lights out back up the brinks truck you
1:25:31will get paid
1:25:36the three levels of drop
1:25:42will form during the night of about six
1:25:44to eight hours
1:25:47look i don't know your time zone
1:25:48converted on timezones.com man i don't
1:25:50know
1:25:52new york time if you're in california
1:25:54minus three
1:25:55if you're in hawaii minus five figure it
1:25:57out
1:26:02paul nice to see you write it down buddy
1:26:04figure out over there in texas i don't
1:26:05know what the hell is going on over
1:26:06there all right
1:26:10need to come over there need some ribs
1:26:11with you buddy i miss you hope you're
1:26:12doing all right
1:26:16okay
1:26:19when you get three levels of drop
1:26:25most of the time because you have an
1:26:28extended move
1:26:30you will get the w formation
1:26:33on the opposite end of the chart and you
1:26:35will get
1:26:36the retracement back into the range
1:26:42i mean the 345 candle that paints from
1:26:44330 to 345 and locks
1:26:48okay
1:26:50so now
1:26:54the brinks trade comes in second leg m
1:26:55or w when the candle paints from 330 to
1:26:58345
1:26:59and there's a hammer spike i'm going to
1:27:02talk about the rules and more stuff
1:27:03we'll go over just want you to see it
1:27:04right now
1:27:09now let's talk about adr if you have an
1:27:12adr
1:27:14on a pair which is average daily range
1:27:17average daily movement sorry about my
1:27:19drawing
1:27:23okay now a pair moves 100 pips
1:27:28right i just told you there's three
1:27:31levels of drop of rise in this example
1:27:33there's three levels of drop
1:27:34what's a hundred divided by three levels
1:27:37to make it easy let's say 33.
1:27:40i know it's 33.333 whatever it's 33.
1:27:43each level will contain
1:27:47approximately 33 pips
1:27:53right understand each level contains
1:27:57about 33 pips
1:27:58so you have a burst or move of 33 pips
1:28:01in each level
1:28:02before retracement or consolidation is
1:28:04seen
1:28:05they'll hold it a little bit mid session
1:28:07they'll consolidate
1:28:08they'll burst 33 pips again
1:28:12consolidate around the eight o'clock
1:28:14hour am
1:28:15then they will burst again 33 pips to
1:28:17finish out the session
1:28:26understand
1:28:28so if a pair is 150 adr like the pound
1:28:30or 200
1:28:32take 150 divided by three you're going
1:28:34to get 50 50 pit bursts of price
1:28:40movement
1:28:43to give you the three levels this is
1:28:45universal in every
1:28:47single pair in every platform with every
1:28:49dealer
1:28:51and i always trade on the 15-minute
1:28:54chart just don't worry about charts
1:28:56right now just get this illustration
1:28:58down
1:28:59pay attention to this this is the whole
1:29:00business right here
1:29:04don't worry about it mac we'll get to it
1:29:05buddy hang in there
1:29:11nice to see you okay if a pair has an
1:29:14adr of
1:29:14150 pips then you will get 50 pip
1:29:18price bursts
1:29:21then they will do the same thing they
1:29:22will go into consolidation
1:29:25they will trap short hit the stop show
1:29:27one more push down
1:29:29pull back second leg will form
1:29:33at 9 30 i'm sorry at nine o'clock
1:29:36over here the strong is getting out of
1:29:37control i should have did small the
1:29:39writing
1:29:40at 9 a.m new york the london session
1:29:43comes to a close
1:29:49the new york market maker comes to work
1:29:52and he talks to the london guy
1:29:56gap time nine to nine thirty
1:30:00at nine thirty
1:30:06the u.s equities market opens
1:30:12the forex is lined up
1:30:16with the u.s equities open to create the
1:30:19moves
1:30:20based on news releases and whatever else
1:30:22is going on the equities market
1:30:25if you are issued second leg w in this
1:30:27example a hammer spike to the bottom
1:30:30at 9 45 candle close 15-minute chart
1:30:34coke i'll cover the adr relax
1:30:41if a 9 9 45 a hammer is issued
1:30:46brings trade number two the reversal
1:30:50is imminent if the second leg mrw
1:30:54forms the hod or lod at 3 45 or 9 45
1:30:59that trade will pay out today
1:31:04that's it that's the brinks trade those
1:31:07times
1:31:08are lined up
1:31:12false move session beginning equities
1:31:14open 9 30 the equities market opens a
1:31:16hammer to the low
1:31:1815 minutes into the session they pull it
1:31:20back and close and paint a hammer
1:31:22they spike to the low and close the
1:31:24other way they trap the traders pick up
1:31:26the orders
1:31:29make the reversal back into the range
1:31:33consolidate okay consolidation comes in
1:31:36around 12 or 1 o'clock in the afternoon
1:31:47this happens in all pairs on a regular
1:31:49basis
1:31:50when you're hunting for the m w we have
1:31:53shadow boxes on the charts we'll talk
1:31:54about it
1:31:55okay boy i made a mess didn't i let's
1:31:58see if i can get another clean one here
1:32:07one two three to the high
1:32:10you're to get three bursts or pushes to
1:32:12the high it can be in three candles
1:32:15which is a work of art
1:32:17it can be in one big huge candle but
1:32:20when you watch that candle
1:32:24you will see three pumps
1:32:27to the high or three pumps to the low
1:32:30the three pumps is based on trader
1:32:32psychology
1:32:33the three levels is also based on trader
1:32:35psychology
1:32:36because you come to it and you see a
1:32:38beautiful downtrend
1:32:40all the technicals are validated
1:32:44they turned over they're showing a drop
1:32:47you go man i miss euros fall today let
1:32:49me take some of that
1:32:51bam they pull it away from you and say
1:32:53just kidding
1:32:56okay here's the brings trade for the
1:32:57second leg here is second leg
1:32:59if this leg issues a hammer
1:33:03a spike or if this leg is comprised from
1:33:079 15 to 9 45
1:33:09of railroad tracks ah sneaky here
1:33:14if this leg is in two moves
1:33:18green going up red coming down and this
1:33:21will
1:33:22be from 3 15 to 3 45 it's a half hour
1:33:26move
1:33:29if that comes in at the session
1:33:31changeover think about the second or
1:33:33third slide in
1:33:36false move trap move end of the session
1:33:40beginning of the next session they jam
1:33:43you up at the changeover
1:33:479 30 the same thing applies down here
1:33:509 15 to 9 30 they issue railroad tracks
1:33:54[Music]
1:33:55that goes on to 9 45 rather okay
1:33:58if they issue one bar at 9 45 and it
1:34:01comes in as a spike to the low or hammer
1:34:03and this forms the lod below of the day
1:34:08or this behavior forms the high of the
1:34:09day that is a brinks trade
1:34:12we're going to go over it again don't
1:34:13worry just want you to see it and get
1:34:15the concept
1:34:18the three levels that are in the chart
1:34:22prey upon you to chase the wrong
1:34:24directional move they put the brakes on
1:34:26at the bottom when you sell into the
1:34:27worst possible point
1:34:29they put the brakes on jam everybody up
1:34:30right in here
1:34:32okay the times again you ready
1:34:375 p.m high low reset i'm not going to
1:34:40write them all
1:34:41and i won't spell them all the way out
1:34:44high low reset
1:34:46five to eight it's dead gap nothing
1:34:48going on
1:34:51five to eight pm dead gap eight to eight
1:34:54thirty asian gap
1:34:56okay i have a slide for this stuff so if
1:34:59you're not getting it now don't worry
1:35:018 to 8 30 dead gap i mean uh asian gap
1:35:06session starts 8 31 runs to 3 o'clock 3
1:35:08to 3 30
1:35:10london asia gap time instructions are
1:35:12passed
1:35:133 30 session starts brings trade comes
1:35:15in from 330 345
1:35:18the move to start the session and
1:35:20trigger the orders the wrong way
1:35:22three levels of drop or rise will be
1:35:24seen
1:35:26the opposite behavior of the m or w is
1:35:28performed between
1:35:31eight and ten eight and eleven the ideal
1:35:34time being nine
1:35:36end of the london session nine to nine
1:35:38thirty gap
1:35:40nine thirty u.s session in line with the
1:35:42equities open
1:35:449 45 if it brings trade is issued you'll
1:35:46get a hammer or spike to the low
1:35:49these times are all right now daylight
1:35:51savings in line with what we're doing
1:35:53in the winter
1:35:56in the winter when we move the clock
1:36:00in the u.s the moves will be seen around
1:36:02two
1:36:04but the equities open does not change
1:36:07because it's still 9 30 here
1:36:09in new york no matter what the the clock
1:36:11is on standard or daylight savings okay
1:36:14the so what happens is in the winter
1:36:18the london session is an hour longer
1:36:21it's irrelevant 9 30 in line with the
1:36:24equities open
1:36:27ron i don't know what you read or
1:36:29thought don't worry about it bs
1:36:32here's the deal
1:36:36all the times that you've read all the
1:36:39stuff that you've been told at the
1:36:40retail level
1:36:42all the crap the clock on there from
1:36:44yahoo and
1:36:45auckland and new zealand comes online
1:36:47and your mother wakes up and throws a
1:36:48couple trades on and
1:36:50uh japan wakes up and then new zealand
1:36:53starts trading it's all
1:36:55those times are garbage they are not
1:36:58going to give you the timings
1:37:02they are not going to say we're going to
1:37:04jam you up at 3 31.
1:37:06they're not going to say that you're not
1:37:07going to find that information out
1:37:09again i need you to subscribe to
1:37:11something different don't
1:37:13rely on the stuff you've read it's crap
1:37:17okay these are the times
1:37:20take them to the grave with you they are
1:37:24solid rock solid not negotiable these
1:37:26are the timings of the business
1:37:28when you start to trade the method you
1:37:29will see how often they come in right at
1:37:323 15 and 3 30 and throw railroad tracks
1:37:34you're going to see how at 9 30 at the
1:37:36equities open they'll spike the low
1:37:40of course there's variations on these
1:37:42times but the session times are not
1:37:44negotiable these are when the guys come
1:37:46on
1:37:47and these when you can expect the moves
1:37:49so now
1:37:51understanding that there are is in fact
1:37:53a timing element is going to change the
1:37:55way you come to the screen
1:37:56and when you view the screen
1:38:00they're going to be some days when they
1:38:01make the moves early and you miss it yes
1:38:05but if you think about what happened
1:38:06monday night where they made a double
1:38:07top m and then they hit it again one
1:38:09more time at london open
1:38:12that london open came in between two and
1:38:13three o'clock there's your entry
1:38:18you don't have to sit there and watch
1:38:19the whole thing all asian session in
1:38:20london session
1:38:21i'm telling you i'm going to narrow it
1:38:23down for you for a three or four hour
1:38:24window of opportunity
1:38:26for london and a two to three hour
1:38:28opportunity for us
1:38:34okay does everybody have the notes on
1:38:36this drawing
1:38:39i'm gonna pull it
1:38:42okay look i don't know what time zones
1:38:44you live in you guys are from all over
1:38:45the world i could never figure it out
1:38:48every time i've given you is the time
1:38:49right now for new york minus
1:38:53wherever you're from or add from
1:38:55wherever you're from okay
1:39:04okay let me find the slides i know
1:39:06they're here somewhere and let's see
1:39:14all right i don't know what's going on
1:39:16let's see here we go
1:39:17okay so now
1:39:23now you understand what i'm talking
1:39:25about okay
1:39:28let's look at things a little
1:39:29differently now now here's your
1:39:30accumulation phase
1:39:33okay here's your w formation with the
1:39:36second leg coming in as a hammer
1:39:39at 3 45 in the morning do you see that
1:39:42okay i've circled it for you see it
1:39:52here is your railroad tracks to the high
1:39:56guess what time this structure was built
1:39:59between nine and ten
1:40:04the reversal comes in to end the day off
1:40:07of the high
1:40:11for them to go into consolidation and
1:40:12trap the traders long holding long
1:40:14overnight
1:40:17that structure comes in after the move
1:40:19is made
1:40:21overnight
1:40:24right around the equities open and ends
1:40:25the day back in consolidation
1:40:28okay double railroad tracks when the
1:40:30high is held and not broken
1:40:32see how the high of the day holds and
1:40:35they keep hitting
1:40:36it that high of the day
1:40:41holding but when you don't understand
1:40:44what you're doing you're thinking this
1:40:45right you're thinking
1:40:47up here you're thinking the a b move
1:40:51when the market comes to rest buy the cd
1:40:54extension
1:40:55the lightning bolt that's what all the
1:40:57retail traders think
1:41:00but when the high fails to be broken for
1:41:0330 to 90
1:41:04minutes up to two hours when the high is
1:41:06not broken
1:41:07it's safe to go the other way keeping in
1:41:10mind the timing element
1:41:12that i've just added notice down here on
1:41:16the w
1:41:16how they set the low at asia spiked
1:41:19right past it to pick up the stops
1:41:21and pendings and then just missed it the
1:41:24third time around
1:41:26the near miss on the third time
1:41:28validates and confirms
1:41:30especially at 3 30 in the morning that
1:41:33you got the right directional bias
1:41:34this is in fact the exact mirror image
1:41:37of what happened
1:41:38on the pound last monday night sunday
1:41:40going into monday they hit it
1:41:42they hit it again they hit it again but
1:41:44don't miss don't take it out
1:41:46when you see the lod hold
1:41:50below the day holds you look to go the
1:41:53opposite way
1:41:54they spike the low lower than here
1:41:58that move gets anybody that went long
1:42:00right in here it takes them out their
1:42:01stops are in here right
1:42:03that spike to the low hits those stops
1:42:06when they trigger the stops they've now
1:42:07lined their pocket
1:42:09now there's some amount of people that
1:42:12went long in here
1:42:13again after that spike to the low right
1:42:16this second pass
1:42:17ensures that they take all those people
1:42:19out too
1:42:20and also ensures that the people that
1:42:22were thinking this
1:42:24got jammed up as well
1:42:27this behavior at the w and at the m
1:42:32plays out over and over again in every
1:42:34pair
1:42:35every day variations on the theme
1:42:40so your job is to look for an entry near
1:42:42the low of the day
1:42:43long look for an entry short
1:42:47near the high of the day
1:42:50if you understand that
1:42:54you'll have success in the business
1:42:58okay see the false move in here they got
1:43:01look
1:43:04that's where the count saves you and
1:43:05your timing element saves you this was
1:43:07seven six seven in the morning this came
1:43:10in at session changeover
1:43:15chasing in the middle of the run not
1:43:17understanding the timing element
1:43:24get you keeps you from getting jammed up
1:43:28the timing element
1:43:32is very very very important the pattern
1:43:36the timing and the count those that's
1:43:38the order that of importance that things
1:43:40are
1:43:42okay so now you see it a little
1:43:43different okay
1:43:45variations on the theme how do they
1:43:47change it what do they do
1:43:50changing the session in which the moves
1:43:51come will keep you confused
1:43:56changing changing the severity of the
1:43:58stop hunts
1:44:00okay you get an extended 100 point stop
1:44:01hunt stop once by the way are typically
1:44:0325 to 50 pips and i'll cover that in
1:44:04detail coming up
1:44:07if they change the severity of something
1:44:10because traders are stubborn and won't
1:44:11let go of their positions
1:44:14they'll make an extended stop hunt
1:44:18they'll do something that looks like
1:44:19this
1:44:22they'll come in pull back go up here
1:44:25like this hang around
1:44:26traders aren't letting go their
1:44:27positions they'll hit it again and make
1:44:29the same structure and then reverse
1:44:32okay
1:44:36they'll make a 75 80 100 pip stop hunt
1:44:39to trigger the traders to get them to go
1:44:41the other way
1:44:42it kind of works like this we're going
1:44:44to show you long
1:44:45as a retail trader i want you to take
1:44:48along i'm a market maker
1:44:49i need you to take along because i need
1:44:52some of my money back
1:44:54so i break in three bursts coming out of
1:44:56the box
1:44:57and i show you long the traders don't
1:45:00bite
1:45:01they don't commit well i need you to
1:45:04commit
1:45:05you don't believe me it's long i'll hit
1:45:07it again and show you along buddy
1:45:11you see it go up again you feel as if
1:45:14you missed the move
1:45:18so now you're like damn it is going long
1:45:19i get on traders commit their funds
1:45:22i go ha got you long i was just kidding
1:45:24sorry about your luck
1:45:25and i pull it down now the other way
1:45:28the example of that again is the most
1:45:31recent chart is monday's three hits to
1:45:33the high
1:45:34the third pass towards the high
1:45:38ensures that the retailers were long but
1:45:44when that high fails to break
1:45:46it is the signal for our group
1:45:49to take it the other way
1:45:53don't be fooled by the market maker's
1:45:55aggressive moves
1:45:57or the extended stop hunts to fall for
1:45:59his crap
1:46:01your job is to take a long
1:46:04near the locked low of the day and a
1:46:07short
1:46:08near at the locked eye of the day and
1:46:10i'll show you how to pick those points
1:46:11on the chart
1:46:14the other trick that he does he conceals
1:46:17the move
1:46:19behind the news announcements
1:46:23you know that at 8 30 when non-farm
1:46:25comes out
1:46:27that there's nothing different in europe
1:46:28than there was at 8 25
1:46:33he uses the news as the triggers to
1:46:35complete his patterns
1:46:36that's why the news doesn't match the
1:46:38market behavior
1:46:40then you get these talking heads making
1:46:42up some crap that oh the eurozone didn't
1:46:45bite for the bad news about the euro
1:46:46they took the euro up today that has
1:46:48nothing to do with it
1:46:50it has to do where they are in the
1:46:51market cycle and how the contracts are
1:46:53built up
1:46:54if they take the market long or euro usd
1:46:57long
1:46:58on negative euro news that makes no
1:47:01sense but they might have formed the w
1:47:05yesterday and be at level two in the
1:47:06cycle and they need to stop hunt low
1:47:09rise the price so that's why that
1:47:11behavior is seen
1:47:12nothing else it has to do with their
1:47:14secret targets
1:47:16their secret price objectives not oh man
1:47:19i understand euro went up today the news
1:47:20was negative
1:47:21they say traders reacted positively no
1:47:24market makers faked everybody out with
1:47:26negative euro news and rose the price
1:47:27that's what they did they conceal the
1:47:30cycle and complete the pattern
1:47:32behind the news announcements you think
1:47:36they don't know that non-farm's coming
1:47:37out
1:47:38first friday every month they probably
1:47:39licked their chops waiting for that damn
1:47:41day to come out
1:47:43they also blame geopolitical events
1:47:46nuclear reactor meltdown spiked the end
1:47:51i know they spiked the end and got a lot
1:47:53of people excited and it rose
1:47:55immediately after the spike they did a
1:47:57stop hunt low trapped the trader showed
1:47:59momentum
1:48:00people thought the bottom would fall out
1:48:01and they trapped them four five six
1:48:02hundred pips in the hole
1:48:04and i know people traded that without a
1:48:06stop and got jacked up
1:48:08because i got emails
1:48:13the news and the politics of the world
1:48:16are secrets used to complete their
1:48:18private cycle and their pattern i've
1:48:20illustrated for you
1:48:20nothing more don't be a victim of the
1:48:24market maker anymore
1:48:25it's over okay
1:48:30all right here we go forex trading times
1:48:33you can actually write them down
1:48:35i'll go over and then i'll be quiet for
1:48:36a minute 5 pm high low is reset
1:48:39the market maker spread is said
1:48:40immediately at the open 5 15
1:48:425 30 right in that time starts and
1:48:44starts his business
1:48:45the asian session 8 30
1:48:49to 3 a.m i left the gap time off of
1:48:52there from five to eight dead gap
1:48:55okay i'm gonna throw it in there right
1:48:57now because then i'll never
1:48:59i'll never remember to put it on there
1:49:00you guys keep writing
1:49:03uh let's see
1:49:065 p.m
1:49:12to 8 p.m
1:49:16is dead gap
1:49:20that's when a lot of traders try to uh
1:49:22scalp and all that stuff i talked about
1:49:24all right
1:49:24see it spaces out i don't know the hell
1:49:26i'm doing here
1:49:28all right there you go a little better i
1:49:30need my wife up here to do this for me
1:49:32okay
1:49:34save it for good measure and blow it
1:49:38back up
1:49:39okay 5 pm to 8 dead gap asian session 8
1:49:4230
1:49:44to 3 am gap time 3 to 3 30 london
1:49:47session 3 30 to 9
1:49:49gap time 9 to 9 30 new york session 9 30
1:49:52to 5
1:49:53and i can tell you as always the uh
1:49:57grab my pen the new york session dies
1:50:01down between twelve
1:50:03and one o'clock in the afternoon okay
1:50:06thirteen hundred twelve to thirteen
1:50:07hundred one pm
1:50:12okay no i did put it in the day gap 5-8
1:50:1530 i put at the bottom i don't know what
1:50:17the hell i'm doing
1:50:18i'll erase this one now
1:50:24just kidding all right i'll be quiet for
1:50:26a minute write these times now man every
1:50:28other time you've ever seen
1:50:30is pure crap these are the times that's
1:50:33it period
1:50:35okay a very good question came up it
1:50:37says does the 8 30 to 8 45 pm candle
1:50:40which is the asian session open have any
1:50:42significance
1:50:43it's a very good question
1:50:46it's not consistent enough for you to
1:50:48make a profit
1:50:49because the moves don't usually follow
1:50:52through in asia
1:50:54because most of the time asia is used as
1:50:57a continuation
1:50:59accumulation part of the cycle excuse me
1:51:02but it is in fact the session open
1:51:04you'll see hammers and stuff like that
1:51:05issued around there
1:51:07but most of the time that falls into
1:51:09setting the accumulation channel
1:51:11or the market maker spread so you're not
1:51:13going to get the follow through
1:51:15i know dick schmidt likes to trade
1:51:16during those times and he takes a small
1:51:18float out of the market during the asian
1:51:21hours
1:51:32okay well i don't understand some of the
1:51:34questions are the timings plus or minus
1:51:36plus or minus what
1:51:37allen confirm adjustment for winter in
1:51:40london open okay
1:51:42in uh we go move the clock back an hour
1:51:45so during the asian and london session
1:51:47move everything back one hour
1:51:50for winter which is coming up when we
1:51:51move the clock october-ish
1:51:53here's the catch today got to be careful
1:51:59yes craig i'll read that in a second you
1:52:01got to be careful about this is
1:52:03since it's europe london open that side
1:52:06of the world
1:52:07if they haven't moved their clock yet
1:52:09and you have
1:52:11then you have the adjusted time but they
1:52:14might still move around three o'clock an
1:52:15hour later
1:52:17when it's when all parts of the world
1:52:19are honoring daylight savings time when
1:52:21everyone's in line
1:52:22so check there's websites that talk
1:52:24about that stuff
1:52:30yes craig at the beginning of the
1:52:31session you're looking for the false
1:52:32move
1:52:37what happens is he'll end the session
1:52:39with an aggressive move
1:52:40and then the new guy comes on and
1:52:42they'll make a continuation of that move
1:52:44false move
1:52:45let's say london was up i mean asia was
1:52:47up right
1:52:49so asia paints the first leg high he
1:52:52pulls back and the session false move
1:52:55london comes on or trap move london
1:52:57comes on he makes the second leg of the
1:52:59w
1:53:00or m by pushing it up back towards the
1:53:03high
1:53:04he might even spike the high and take it
1:53:05out to pick up the contracts
1:53:07then he'll reverse off of that number
1:53:10false move session beginning
1:53:11run his trend six to eight hours into us
1:53:15and he might make the first leg at 8 30
1:53:17or 8 o'clock
1:53:18go into consolidation spike it again at
1:53:209 30 issue a hammer and reverse
1:53:22when the new guy comes on false moves
1:53:25are made
1:53:26at the beginning and end of the session
1:53:28intraday
1:53:29to trap the traders and to swap and to
1:53:31jam them up for tomorrow
1:53:34the same pattern also repeats throughout
1:53:36the course of the week
1:53:37you'll have the same consolidation tight
1:53:39range sunday going into monday
1:53:41false move week beginning down
1:53:44a multi-session mrw which is they set
1:53:47the level on monday
1:53:48repeat the level on tuesday in line with
1:53:51the stop hunt
1:53:56okay and then they'll make the
1:53:57uni-directional swing weak ending
1:53:59a minimum of three days that's where the
1:54:02guys are catching the swing trades are
1:54:04coming in
1:54:05the potential for a swing trade trade is
1:54:08three to six hundred pips
1:54:09captured at the peak formation high of
1:54:11the week peak formation low of the week
1:54:13if you catch one of those points you got
1:54:16about a three to six hundred pips spread
1:54:18that you can grab for yourself
1:54:19and i have people doing that
1:54:21consistently
1:54:23i don't do it the reason why is this
1:54:27if you haven't noticed i'm a little high
1:54:28strung
1:54:30if i wanted to stay married i had to get
1:54:32the laptop off of my night table with my
1:54:34positions on
1:54:36so since i can't look at it without
1:54:38waking my wife up and pissing her off
1:54:41i needed to just be flat at the end of
1:54:43the day the end of my trading day
1:54:45okay so that's why i just take more
1:54:48contracts grab my float and i'm done
1:54:51and at the end of the day everything's
1:54:52off the board i'm square flat whatever
1:54:55you want to call it
1:54:56and that's how i trade it all right does
1:54:58everybody have this written down it
1:54:59really is an important slide
1:55:04cool all right let me
1:55:08just drive me crazy that i messed up the
1:55:09slide i can't help it
1:55:12part of my personality let me erase the
1:55:13bottom of this
1:55:15let me erase this one right here because
1:55:17it was right i didn't know it was on
1:55:18there
1:55:20okay cool back in business
1:55:26okay now this is the timing is the
1:55:29second most important element of the
1:55:30business right i told you that
1:55:32so you have to time map your dealer
1:55:38most important element of the business
1:55:39the pattern market maker behavior
1:55:41identifying that
1:55:42identifying his behavior at the right
1:55:44timing keys is solid
1:55:46gold
1:55:49so now the new indicators that we gave
1:55:51you
1:55:52if you have craig said i'm sure he'll
1:55:54help you
1:55:56sorry craig i put that on you the new
1:55:58indicators
1:56:00have to match the time of the dealer
1:56:02you're using
1:56:03if you don't have a dealer i'd like you
1:56:05to contact compass and let them put you
1:56:07into a good dealer
1:56:08if you have a dealer if you're offshore
1:56:10if you want to trade that's fine
1:56:13but you have to identify the formations
1:56:15at the proper times or else they're
1:56:16garbage
1:56:16you'll see m's and w's all day if you
1:56:20don't understand the behavior at the gap
1:56:21times and the changeovers
1:56:25you're not doing it right
1:56:28don't get confused with the time ribbon
1:56:31on the bottom of your broker's platform
1:56:34that's their server time and where their
1:56:36server is located
1:56:37some of it's gmt plus two gmt plus five
1:56:40new york plus six you gotta figure that
1:56:42out
1:56:45i'm pretty sure gary posted in the forum
1:56:51a little script that you put on your
1:56:52chart it pings the server and gives you
1:56:54times all around the world the broker
1:56:56server your time your trading zone all
1:56:58that stuff it's pretty cool
1:57:01if you don't have it go to the form and
1:57:04get it
1:57:05put it on your chart write down the
1:57:07times bounce it off your broker server
1:57:09ping his server and get the times and
1:57:11make the adjustments accordingly
1:57:13the way to make the adjustments is to go
1:57:15into the work time ribbon
1:57:18i should have wrote some slides on that
1:57:19i'm sorry i will for next class
1:57:22go into the work time ribbon and make
1:57:24the appropriate adjustments
1:57:28okay to match the timings you should
1:57:31have your shadow boxes
1:57:33your stop hunt zones all need to come in
1:57:35at the appropriate times
1:57:36to show you where the possibility of the
1:57:39reversal and the stop hunts will occur
1:57:41if you've if you loaded the indicators
1:57:43today with zen if you haven't it's okay
1:57:45we'll look at the charts in a couple
1:57:46days the charts are irrelevant right now
1:57:48you got to grasp this concept and change
1:57:51your way of thinking the chart is not
1:57:53important right now
1:57:54we will look at the chart you got to
1:57:57wrap your brain around the stuff i'm
1:57:58telling you first
1:57:59and that's going to be a couple of days
1:58:00when we look at charts
1:58:07i said this before i say for the last
1:58:09time all other time references are
1:58:11garbage and should not be followed
1:58:13other than the times i've given you
1:58:14that's it that's your new times
1:58:21okay a little more about the brink
1:58:22straight the two most telling candles
1:58:24come in
1:58:25from 3 30 3 45 at the london session
1:58:27opener
1:58:299 30 to 9 45 u.s opener sets up to bring
1:58:32street
1:58:33make a note
1:58:39okay i lost the chat window on you guys
1:58:41sorry so i can't see if you're asking me
1:58:46anything
1:58:49there it is
1:58:56give me a second sorry guys okay get it
1:58:59off of there all right
1:59:03here's what i'm talking about
1:59:12let me grab my little pen let's talk
1:59:14about this kind of crazy
1:59:21consolidation
1:59:25one two three to the low three bursts
1:59:29variations on the burst i'll illustrate
1:59:31a few
1:59:34okay some people are saying i went too
1:59:35fast on that previous slide i'll go back
1:59:37one for a second
1:59:38you guys should make a note sorry let me
1:59:41let me back up a second and leave that
1:59:43for a minute
1:59:44too all right write it down i'll take a
1:59:46second i'll have a sip of diet cokes
1:59:49okay
1:59:55coming right out of the box you have
1:59:56three vector candles the vector candles
1:59:58are an aggressive move it's an
2:00:00engineering term or uh
2:00:01i don't know zaim came up with this term
2:00:03because he was very technical and he
2:00:04needed something to
2:00:06make him feel better so we came up with
2:00:08this
2:00:10market makers extend the initial low of
2:00:12the day
2:00:13in three pushes right
2:00:17this is the initial low of the day
2:00:19correct they extend that low
2:00:21in one burst two bursts
2:00:24the third burst the third burst happens
2:00:27to hit
2:00:28our pre-measured 25 to 50 pip
2:00:31stop hunt zone the stop hunts are made
2:00:34in 25 to 50 pip increments
2:00:36because they know where people trade and
2:00:39put their stops
2:00:41this box is 25 to 50 pips the shadow box
2:00:44comes in
2:00:46between three and four o'clock because
2:00:49there's variations on the theme
2:00:54just so happened they issue a hammer
2:00:59right in the middle of the shadow box
2:01:04you got three swipes at the low 25 to 50
2:01:08pips stop hunt zone
2:01:10they issue a hammer in the shadow
2:01:14which is the session changeover
2:01:17understand this candle was solid red at
2:01:19one time right
2:01:20you guys know this solid red pushing
2:01:22down
2:01:23what does that do induces traders to go
2:01:25short
2:01:27they then shift the zone away from the
2:01:29lower level shorts over here
2:01:32but look what they did they're dirty
2:01:33they open they turn this red
2:01:35to push down one more time you know what
2:01:37that did they open the spread around
2:01:39here too when they get down here they
2:01:40open the spread
2:01:42anybody that was already long in here
2:01:44has their stop
2:01:45where textbooks tell you to put your
2:01:46stop three to five pips below the candle
2:01:49i got in it steve
2:01:50that is an absolute suckers bet you will
2:01:53lose your money every time
2:01:58the stop loss goes below the low and
2:02:01above the high of the day i will discuss
2:02:03it exactly where it goes
2:02:06market maker's job is to take your money
2:02:08and hit the stops right i told you this
2:02:09already
2:02:10they absolutely ensure that they're
2:02:13going to get all the weak
2:02:14long holders spiked out right there
2:02:16anybody that's traded down to here by
2:02:18opening the spread at the low
2:02:26the two gray boxes are the shadow box is
2:02:30the gap time of the session
2:02:34the gap time going into the open
2:02:38the big gray boxes are the stop hunt
2:02:40zones
2:02:43okay if you took the break out here
2:02:48okay you remember the breakout systems
2:02:49you bracket break plus a close you
2:02:51entered here
2:02:52you saw very little profit on the spike
2:02:54and then they pulled back and they
2:02:56jammed you up
2:02:57if you didn't have the stomach to take
2:02:58the break here you did not have a
2:03:00successful trade today
2:03:01or if you lifted your stop on the short
2:03:03you would drag backwards all freaking
2:03:05day
2:03:08anytime market makers hit a level three
2:03:10times and don't
2:03:12break it the reversal is imminent
2:03:15they will reverse look hit
2:03:18don't break it hit don't break it hit
2:03:21don't break it
2:03:22there's your entry if you entered here
2:03:24you're okay
2:03:26why
2:03:30you're okay because your stop goes above
2:03:32the high of the day
2:03:33the high of the day will not be broken
2:03:36on these formations because there is
2:03:39some amount of money trapped above that
2:03:41price point
2:03:42if they come back and break the level it
2:03:45releases those traders money
2:03:47back into their account they're in the
2:03:50job of freezing the money
2:03:54in open float so they can take advantage
2:03:56of it and grab it up for themselves
2:04:01every chart that i show is 15 minutes
2:04:02unless i specify otherwise
2:04:07okay so here's your opportunity for the
2:04:08trades you had
2:04:13stop hunt low rise easily identified
2:04:16brings trade in the shadow 25 to 50 pips
2:04:18three pushes out of the box two pushes
2:04:22consolidate one more push to pick up the
2:04:24orders
2:04:26you had a straight rise if you grab the
2:04:28entry in here anywhere in here after the
2:04:30hammers issued in the shadow
2:04:32you had a straight rise of profit you
2:04:35were in profit in first 15 minutes of
2:04:36the trade depending on where you grabbed
2:04:38it
2:04:38maybe in the first 30 minutes of the
2:04:39trade you then went negative
2:04:42which used to scare you out of the
2:04:44business when that went negative on you
2:04:46four five six seven pips what you do
2:04:48you're like oh crap
2:04:50you're gonna get me i'm going the wrong
2:04:51way
2:04:53any trade that you ever take with this
2:04:56method
2:04:58remains valid
2:05:02until your perceived low of the day or
2:05:04high the day is breached
2:05:08let me say that again it's important
2:05:12any trades you take with my rules and my
2:05:14method
2:05:15remains in play or valid
2:05:19until the low of the day
2:05:22where you should be entering long the
2:05:24high of the day we should be entering
2:05:25short is breached
2:05:27what do i mean okay let me draw high of
2:05:30the day is formed right here
2:05:33you took a short right off it got jacked
2:05:35up you're excited okay no problem
2:05:38the better trade is just inside the
2:05:40shadow box short that's all right though
2:05:42they hit it again you're short right
2:05:44here your trade is negative
2:05:46your stop loss
2:05:50is above the range you're out of the
2:05:51range you're out of the grasp of the
2:05:53market maker
2:05:56think for a minute he is not going to
2:05:59move
2:06:00a 4 trillion dollar market
2:06:03to get robert
2:06:07or ted i don't know if ted's in here
2:06:09he's not going to move the entire market
2:06:11back
2:06:11to get outside the range to pick up your
2:06:13measly one lot contract no offense
2:06:16to your lot size understand if he moves
2:06:19a four trillion dollar market back
2:06:21up he releases 500 million in volume
2:06:26to pick up your order
2:06:31he has two hands in one hand he has 500
2:06:35million dollars
2:06:36grabbed up right
2:06:40he'll look at it right he'll move to a
2:06:42level and analyze he pulls away
2:06:44and he goes into consolidation off the
2:06:45high right
2:06:48if there is 700 million dollars up there
2:06:51he nets 200 million he'll break the high
2:06:58he lets go of the 500 and grabs the
2:07:00seven he's a greedy bastard
2:07:06if you understand that
2:07:11he is not going to move the market
2:07:13unless it's financially advantageous for
2:07:15him
2:07:17to get your stop order some of your
2:07:19writing that sometimes you feel like he
2:07:20goes after you deliberately
2:07:22no the reason why that you feel like
2:07:24that
2:07:25is because you've read all the same
2:07:26books that all the other guys 90
2:07:28of traders have read and you put your
2:07:31stop
2:07:32where 90 of the traders put it
2:07:36so what's going on here is you get in
2:07:38and you go oh my stop's right here this
2:07:40looks good it's a good trade today
2:07:41market maker comes back spikes the high
2:07:43and takes your stop out
2:07:44and you're like damn it i swear to god
2:07:46he's personal against me then it drops
2:07:47like you thought anyway right
2:07:49he's going after me personally no you've
2:07:52all had
2:07:53in the access to the information that
2:07:54everyone else has had it's all the same
2:07:56general knowledge it's all so
2:07:59when everyone gets stopped out at that
2:08:00price point
2:08:02it's because the technicals that you saw
2:08:05that he deliberately showed you on the
2:08:07chart
2:08:10validated what you read in the book so
2:08:12you took that trade based on that
2:08:14garbage
2:08:14and he laughed to himself as he hit your
2:08:16stops all
2:08:18100 million of you
2:08:22understand that's why
2:08:25when you took those trades and they
2:08:26didn't validate and you felt like he was
2:08:28personally attacking your stop loss
2:08:30he was not he is not going to move a
2:08:32market to a price point
2:08:36to get mac or to get michael he's not
2:08:38going to do that
2:08:39but if it's financially advantageous for
2:08:42him
2:08:45he'll make the second pass or the third
2:08:47pass this costs money to move the market
2:08:50i heard that it takes ten thousand lots
2:08:52to move the market
2:08:53a pip i i didn't hear it i was taught
2:08:57that
2:08:59think about that a minute if you have to
2:09:02move the market all the way back up
2:09:04here it costs money
2:09:10if it costs money
2:09:15he's not going to do it unless he can
2:09:16make some in the process
2:09:18all right i want you to notice some
2:09:19crazy stuff built into this structure or
2:09:21towards the high okay
2:09:22i want you to see a 1 2
2:09:253 back to the high in there do you see
2:09:27that 1
2:09:292 3 back to the high why to induce you
2:09:32to chase it long
2:09:33i want you to notice they rise here
2:09:36and each subsequent pass
2:09:40fails to take out the previous high
2:09:43because there's trap volume here
2:09:45there's trap volume here there's trap
2:09:47volume here
2:09:49their stop orders all aggregated in here
2:09:52and in here
2:09:54his job is to hit the stops don't
2:09:56release the volume
2:09:57hit the stops don't release the volume
2:09:59sorry about your luck just kidding and
2:10:01drop price 100 pips off the high
2:10:03to end the day back in consolidation
2:10:06boom right here end the day back in
2:10:08consolidation
2:10:12and just if you weren't sure he has to
2:10:14end the day on a hammer to trap anybody
2:10:16that was chasing it short last minute
2:10:18snatch that away from them and end the
2:10:20day trapped carry you into the next day
2:10:25do you see what i'm drawing what i've
2:10:26been illustrating for you it's in there
2:10:31releasing the volume means that if
2:10:33there's a certain amount of traders that
2:10:35they already trapped
2:10:37by going back to that level it allows
2:10:40people to click their mouse and get out
2:10:42think
2:10:42about yourself in your own trading how
2:10:44many times have you been jammed up in
2:10:46something said if it goes back to plus
2:10:47one i'm getting out
2:10:48if it goes back to minus five i'm
2:10:50getting out
2:10:52when you come back near the second pass
2:10:53you will be minus some number plus the
2:10:55spread
2:10:56minus seven minus five plus two plus one
2:10:58i don't know
2:10:59where it depends on where you got in
2:11:05so what he's doing
2:11:09if he goes back and breaks that level
2:11:12he's allowing those traders that were
2:11:14jammed up
2:11:16a chance to close their account out with
2:11:18a small scratch or small
2:11:22excuse me lost or gained in the trade
2:11:24his job is to not allow that behavior
2:11:26so he fails to take out the high
2:11:31okay all right i hope you guys are good
2:11:36let's see where we're at next slide
2:11:41okay it's 8 30 we'll do this slide and
2:11:44we'll break for
2:11:4630 minutes is a good dinner time we'll
2:11:48try 30 minutes tonight if it's too long
2:11:49we'll shorten if it's too short we'll go
2:11:51an extra five whatever
2:11:52uh i'm gonna grab a little something to
2:11:54eat and i'm gonna get some more diet
2:11:55coke if i'm not jacked up enough for you
2:11:57guys i'm sorry some of you made comments
2:11:59i feel fine man so if you think i'm too
2:12:02calm tonight i'll
2:12:03be more excited tomorrow okay look
2:12:06very important to understand market
2:12:08makers have limitations
2:12:10they are limited what they can
2:12:11physically do to the market
2:12:13if you think about this for a minute
2:12:18they're controlling the value of imports
2:12:20and exports
2:12:21you buy toyotas and you switch your
2:12:23dollars to yens they're controlling that
2:12:25they cannot just wake up one day and
2:12:27drop in a million pips and devalue the
2:12:29dollar
2:12:29or devalue the yen they cannot do that
2:12:33they have restrictions placed on them by
2:12:35the imf in the world bank
2:12:37to try to keep this world afloat that is
2:12:40why the
2:12:40average daily range tool told you get
2:12:42back to a mac
2:12:44is a useful tool and can only move
2:12:47most pairs about 200 pips a day to 600
2:12:51pips a week
2:12:52and if you notice something on some of
2:12:54these charts they will open the week at
2:12:56a price point
2:12:57go berserk and come all the way back and
2:13:01close the week around the same number
2:13:09they do not contrary to popular belief
2:13:11have unlimited equity
2:13:13they got to get their money back that's
2:13:15where the retrace against the trend
2:13:16comes in
2:13:17they lend it out they lend it out they
2:13:19lend it out they gotta get it back
2:13:22they are limited by weekly net change
2:13:25allowances
2:13:28they have a couple of times during the
2:13:29month where they can run rampant but
2:13:31they got to get it back under control
2:13:34think use your head if they could do
2:13:36that they would destroy the world
2:13:37economy
2:13:38and things are bad enough without doing
2:13:39this to people they have some
2:13:42limitations
2:13:43understanding the limitations gives you
2:13:46an edge
2:13:50understanding that they don't have
2:13:52unlimited movable
2:13:55pips gives you an edge
2:14:00okay all right let's take
2:14:03it's 8 31 let's go to 9 o'clock
2:14:07and uh we'll pick it back up from there
2:14:08hope you guys are doing okay
2:14:10we're going to go to about 10 30 tonight
2:14:11i think and then uh
2:14:14we'll be good all right let me find my
2:14:16little clock somewhere
2:14:18i'll pop it up there go ahead and grab a
2:14:19break i'm going to say anything now that
2:14:20it's break time
2:14:21i won't do that to anybody all right
2:14:24let's see clear
2:14:25seven minutes ain't gonna work
2:14:32i saw a couple questions craig had two
2:14:34good questions let me uh
2:14:36let me cover those real quick because
2:14:38they are uh
2:14:40time appropriate they're in the right
2:14:41segment uh steve you said there's three
2:14:44important things the patterns
2:14:45the timings and what the answer is the
2:14:48levels
2:14:50okay most important element of the
2:14:51system the pattern identifying the
2:14:53patterns from the market maker behavior
2:14:55the timings of those patterns
2:14:59and counting the levels the levels are
2:15:02not going to come to you overnight
2:15:04they're difficult
2:15:05there's people that have been around me
2:15:06for a year still struggling with that
2:15:09it is not an absolute necessity to be
2:15:12successful
2:15:14with this method but understanding the
2:15:17levels
2:15:19will let you know when the reversal is
2:15:20coming when to exit your swing trades
2:15:22and so forth okay weekly net change
2:15:26allowance was another question that came
2:15:27up
2:15:30let's say they open at a price point
2:15:33they are given just to make it easy a
2:15:35thousand pip movement
2:15:37weekly net change so from the
2:15:40open price point
2:15:43in the three to four day swing range
2:15:45they cannot exceed one thousand pips on
2:15:47the close on friday
2:15:50so if they rise price a thousand pips or
2:15:53eleven hundred pips
2:15:54they have to come back below
2:15:58the thousand pip marker that's given to
2:16:00them before they close on friday
2:16:02to keep currencies from being devalued
2:16:05or whatever
2:16:07their seasonal targets quarterly
2:16:10there's daily and weekly ranges that
2:16:12they're given
2:16:16understand they're making money but at
2:16:18the same time they have to be
2:16:19cognizant or aware of what's going on in
2:16:21the world economy and the world markets
2:16:23they cannot destroy things so they're
2:16:25given a price point on
2:16:27monday or sunday night at open and they
2:16:29have a weekly net change of 500
2:16:31they run at 6 700 pips you can expect
2:16:34the reversal back in to underneath the
2:16:36500 limit by friday close
2:16:38hence false trap move on friday to end
2:16:41the week
2:16:43okay and then the cycle starts over
2:16:46all right those are some good questions
2:16:48i think some of the other stuff wasn't
2:16:49pertinent to right now
2:16:51let me look a minute nice to have you
2:16:54adam glad to hear you're doing so well
2:17:00shaheed from uh toronto i think you left
2:17:02you'll be back
2:17:04all right ronald nice to see all you
2:17:06guys all right let's get going again
2:17:08everybody settled in from their break
2:17:11got something to eat
2:17:15okay listen the reason for the break is
2:17:17i want you to think i don't want to just
2:17:18sit here
2:17:21and i want to throw a fire hose at you
2:17:23with tons and tons of information then
2:17:24you sit here just mesmerized by what the
2:17:26hell did this guy just say that's not
2:17:27the point
2:17:29i talk to you about some stuff some
2:17:31concepts think about it on your dinner
2:17:32break
2:17:33resonate on a little bit tonight i'm
2:17:35gonna give you some homework assignments
2:17:37to think about more stuff
2:17:40we're going to go about four hours of
2:17:42time 10 30 10 i don't know we'll figure
2:17:44it out wherever i am on the slides
2:17:45the point of that is is i don't want to
2:17:48just sit here and just keep stuffing
2:17:49stuff down your throat i want you to
2:17:50think about it overnight
2:17:52and when i've taught live i noticed that
2:17:55people
2:17:56have about had enough in about four
2:17:58hours i'm not so full of myself that i
2:18:00don't realize you get tired and that i
2:18:02think i just have so much great stuff to
2:18:03say i understand that
2:18:05so four hours is the marker to where
2:18:07you've had enough sitting in the chair
2:18:09seems to be when i'm teaching live
2:18:11people start slouching their chairs
2:18:12putting their heads on their desk
2:18:14gloria fell asleep on me one time four
2:18:16hours in so i realized
2:18:18four hours is a good marker take a break
2:18:19about halfway through get up eat
2:18:21something
2:18:22go smoke one esubio did you quit by the
2:18:24way i've been trying to quit diet coke i
2:18:26almost made it and i fell back into it
2:18:29i'll get it man
2:18:32anyway the point is is that i want you
2:18:34to get this
2:18:35me rushing through it to get all the
2:18:38information to you is not the point the
2:18:39point is it takes
2:18:40it's a process it takes some time i
2:18:43asked if you quit smoking isubio
2:18:45i know you were trying i've been trying
2:18:46to quit diet coke
2:18:49anyway that's the point of the break
2:18:52okay appreciate it
2:18:54i want you guys to really conceptualize
2:18:56and understand this
2:18:58it's not going to be part of you until
2:19:01you conceptualize it becomes your own
2:19:03and that's the point of going slow and
2:19:05making sure everybody gets it okay
2:19:07all right back to the slides
2:19:10market maker moves all right we
2:19:12understand
2:19:14all the things we talked about the
2:19:15pattern the behaviors what they do
2:19:17so what can they do what do they really
2:19:18what can they really do to you
2:19:21they are limited by weekly net change
2:19:23and allowances they're also limited to
2:19:25they can hit your stops up or down
2:19:29they reverse off of the high or low
2:19:32and create an intraday trend change what
2:19:35happens which happens a lot
2:19:37they can do a straight away straight
2:19:38rise or drop
2:19:40which is the finishing move on the
2:19:42margin levels of the other traders
2:19:45i'll illustrate that for you don't worry
2:19:49timings and test your patience right
2:19:51what do i mean by that
2:19:53you get in something you lift your stop
2:19:55you're down a negative float
2:19:57they go into consolidation change shifts
2:19:59the asian guy comes on you're still
2:20:01sitting there
2:20:03what happens after a day day and a half
2:20:05of doing that
2:20:07your nerves are shot your patients have
2:20:10been tested to the to the max
2:20:12you're drinking red bull kicking the dog
2:20:13cursing under your breath
2:20:15and you finally click out of the trade
2:20:17because you can't take it anymore
2:20:21understanding that all they have is
2:20:23timings and stop hunts
2:20:26and trap moves kind of moves
2:20:30removes the curtains from oz you
2:20:31understand what's going on that's all
2:20:33they got
2:20:34they're limited
2:20:38the problem is is that the other
2:20:40technicals set you up for failure
2:20:44and keep you chasing the wrong things
2:20:47like i said earlier it ends today
2:20:53okay this is one of my favorite charts
2:20:57this is two days back to back oh look at
2:21:00it's in the pound
2:21:01it's in march 15th
2:21:06stop on high spike to the high drop w
2:21:09formation to end the day back in
2:21:10consolidation
2:21:12the next night stop hunt low there's
2:21:14your three pushes your vector
2:21:18right come right out rise price right
2:21:20back here's your
2:21:21weekly net change craig two days no
2:21:23change
2:21:25the price closed exactly where it opened
2:21:34it's kind of funny this is they got to
2:21:36be kidding right
2:21:37they come out hit the stops high three
2:21:40pushes drop
2:21:41w formation back into consolidation the
2:21:44next night
2:21:45they exceed the trap level here by
2:21:48making a stop hunt to trigger the
2:21:49traders induce the pendings
2:21:51and then snatch the market away and run
2:21:52it back right back to the same price
2:21:54point they were
2:21:55yesterday
2:22:00that's why the pattern is so important
2:22:02you really can't count the levels in
2:22:03there it's a little harder
2:22:04but the patterns and the timings are
2:22:06right there exactly if i stated for you
2:22:08and illustrated and drew out
2:22:11i mean one could argue that this is
2:22:12their us reversal and this comes in
2:22:14around nine o'clock in the morning
2:22:16whatever
2:22:16and then they go back in the
2:22:17consolidation but
2:22:19this is the epitome of what i've drawn
2:22:22for you on the charts
2:22:23it it's there
2:22:27what i want you to do as a trader is
2:22:30stop getting caught up in the moment
2:22:35getting caught up in the moment
2:22:40forces you to make irrational decisions
2:22:44you need to have a plan of attack before
2:22:47you come to trading
2:22:48in line with the market makers trend
2:22:54don't let the aggressive moves fool you
2:22:59don't let their big spike candles to the
2:23:01high
2:23:03lure you into thinking it's momentum
2:23:09there's gonna be a mid-week reversal
2:23:11which will coincide with the intraday
2:23:13reversal
2:23:14and levels
2:23:19okay what i meant was okay let's draw
2:23:22this little pattern over here okay
2:23:25consolidation sunday monday right sunday
2:23:27false move
2:23:28let's just call it sunday they break to
2:23:30the downside they hit a level they pull
2:23:32back this might be monday
2:23:36okay they have a trap vault amount of
2:23:39volume there
2:23:39they go into consolidation tuesday they
2:23:42come back and repeat the level
2:23:43this is a multi-session w formation
2:23:47but what happens here is they come back
2:23:51this might have been
2:23:52uh asian session
2:23:55they come back and repeat the level at
2:23:56the london open as a stop hunt
2:23:58they disguise the second leg as a stop
2:24:01hunt
2:24:03to make the traders continue short they
2:24:06take out anybody that went long in here
2:24:08and then they reverse the market then
2:24:10you will have your three
2:24:11day uni-directional swing
2:24:15to the end of the week or in going into
2:24:17thursday and then they'll make the
2:24:18pullback to end the week
2:24:21and then the consolidation off of the
2:24:22high this number in the three-day range
2:24:25might exceed
2:24:26the net change allowed for the week so
2:24:28they have to pull back to end the week
2:24:31below their net change allowance the
2:24:33threshold might be right here at 500
2:24:35they exceeded it they know what they got
2:24:37to do they got their marching orders
2:24:38they got to come back below and close
2:24:42okay once you can identify
2:24:45consistently and by the way the one hour
2:24:47chart helps with this
2:24:49the midweek reversals and the
2:24:50multi-session m's and w's
2:24:53you can convert your spot trades to
2:24:55swing
2:24:57you know you have two and a half to
2:24:59three days of upcycle or down cycle
2:25:03with the maximum potential move of two
2:25:06to six hundred pips
2:25:10if you catch the trade going into friday
2:25:12understand
2:25:14that you're going to get a reversal
2:25:16pattern coming out of one of the opens
2:25:18london
2:25:19or new york you're going to get a stop
2:25:22hunt if the stop hunt is counter
2:25:25to your directional bias you take
2:25:29all right let me explain that again if
2:25:32you get into day three
2:25:35and you're a buyer at the beginning of
2:25:38the cycle
2:25:40when you get to day three if london open
2:25:42they come out and hit the stops high
2:25:44you take you get out because the
2:25:46reversal is coming
2:25:49you react to their action market makers
2:25:52hit the stops low
2:25:54you buy against the retail trading herd
2:25:57market makers hit the stops high you
2:25:59sell against the retail trading herd
2:26:04the m w the multi-session m w
2:26:08will be very very aggressive think about
2:26:12what they're doing
2:26:13they're taking profit cleaning the board
2:26:16and putting money in their pocket in
2:26:19order to do
2:26:20that those levels have to be very
2:26:21aggressive aggressive
2:26:28okay now let's look at some typical weak
2:26:30stuff now that you understand a little
2:26:32bit more about the pattern
2:26:36okay aggressive move weak beginning
2:26:40trap the traders jam them up stop hunt
2:26:43low
2:26:44rise back into consolidation stop hunt
2:26:47low
2:26:52rise 100 pips and extended high of the
2:26:55week formation
2:26:56extended why the blue box is 103 pips
2:26:59this is about 150 pip move
2:27:02what happened you didn't believe me i
2:27:05wanted long
2:27:07i'll show you along but if you notice
2:27:11where they cut the level
2:27:14this is in fact peak formation high for
2:27:17the week
2:27:18if you have a peak formation high for
2:27:22the week
2:27:24we expect three days of drop
2:27:31okay so what's expected i'm going to
2:27:33give you some more slides on this but
2:27:34think for a minute
2:27:36day one peak formation high high of the
2:27:38week got it
2:27:40the next night hit the stops high drop
2:27:46or straight drop the next night hit the
2:27:48stops high drop or straight drop
2:27:50three days and the cycle look for the w
2:27:52reverse
2:27:53that's the three day swing trade cycle
2:27:56peak formation high high or low of the
2:27:57week is identified
2:27:59you expect two more stop hunts
2:28:03in line with the peak formation
2:28:09if he throws at you something different
2:28:15exit the trade and look for a new signal
2:28:20okay so here
2:28:24peak formation high of the week right
2:28:25you got the midweek false move
2:28:27they jam people up long people think
2:28:29this is the famous
2:28:31continuation
2:28:35when the high holds notice the blue
2:28:37tracer in here i'll talk about that
2:28:39very important when the high holds for
2:28:4330 to 90 minutes
2:28:44and they pull back you have your peak
2:28:45formation
2:28:47the project the projection is
2:28:50m a w a a1
2:28:55a2
2:29:02peak formation v top
2:29:05i mean v top turned over v top
2:29:08reversal
2:29:13okay three levels are seen
2:29:17one consolidation to
2:29:21consolidation and three was underway
2:29:27okay the two cycles and i have
2:29:30slideshows i'll talk about it again
2:29:31is wvvm it looks like a w
2:29:37one two three
2:29:42reverse one
2:29:45two three
2:29:48reverse that's the market maker cycle
2:29:50right there
2:29:55okay m a a w v
2:29:58uh wvvm
2:30:02why the v's sometimes you'll get w's
2:30:05every single time
2:30:06but here's the thing if you have your
2:30:08market maker by as high of the week low
2:30:10of the week established and you know the
2:30:11direction
2:30:12you can trade off of the first stop on
2:30:14out of the box v bottoms
2:30:16you don't have to wait for the second
2:30:17leg because you know the cycle
2:30:21the best trades are multi-session m's
2:30:23and w's multi-session or
2:30:24uh intra intercession m's and w's those
2:30:27are the best patterns beyond the shadow
2:30:28of a doubt
2:30:29it allows you to grab close to the low
2:30:30of the day your stops will be tighter
2:30:33it avoids you sitting through the repeat
2:30:35the level stress of them coming back
2:30:39but if you understand the cycle and
2:30:41caught the directional bias
2:30:43then this spot tray can be converted
2:30:46to a swing why i caught the peak
2:30:50formation high
2:30:53the next night hit the stops high i'm
2:30:54still good if they break out of the top
2:30:56of the box i'm still good
2:30:58in here why am i still good because they
2:31:01hit the stops high
2:31:02issued railroad tracks at the london
2:31:04open in line with the peak
2:31:06that lets me know it's a false move drop
2:31:11now they've created some amount of
2:31:12margin trouble they've created a ton of
2:31:14congestion right
2:31:15chest colds in there
2:31:18hitting the stops in both directions
2:31:19picking up the contracts no congestion
2:31:21take some nyquil
2:31:22some tylenol pm or something you
2:31:25understand that you got one more day of
2:31:27drop
2:31:28on the cycle your bias is to the
2:31:29downside so you're looking for excuses
2:31:32or reasons
2:31:33stop on high drop
2:31:41okay i don't want you to counter trend
2:31:45trade at a1 and v1
2:31:48i don't want you to trade back towards
2:31:50the peak formation high
2:31:51because it's a suckers trade
2:31:56i have slides don't worry i'm just
2:31:57illustrating it now we'll get to it
2:32:01okay here it is again consolidation
2:32:07peak formation expect
2:32:10hit the stops high
2:32:13same slide sorry now the reversal comes
2:32:16in
2:32:17end of the week i expect this i had
2:32:19three levels of drop
2:32:21the pins on the candles will become
2:32:25the direction that they're trying to
2:32:27trap very important write that down
2:32:29the pins on the candle at level three
2:32:34will become
2:32:38or start to paint in the direction
2:32:42that they are trying to now trap level
2:32:45three aggressive moves will be seen
2:32:49notice how the first two days of the
2:32:51cycle it drops down smooth
2:32:52and then when you get to level three it
2:32:54doesn't seem to go anywhere
2:32:57why you're reeling it in reeling it in
2:33:00reeling it in grabbing up the traders
2:33:04okay
2:33:08again
2:33:11hit the low spike it see how this went
2:33:14slightly past it they spiked it with a
2:33:16hammer
2:33:16right outside the box the spike of the
2:33:20low
2:33:21absorbs the pending and triggers the
2:33:23stops of anybody that got it right
2:33:26they open the spread at the low of the
2:33:28day you'll see them work this
2:33:30the spread gives them an edge against
2:33:33the retail traders
2:33:34it's their weapon if you're a buyer
2:33:38they open the sell side drop the sell
2:33:40side below
2:33:41the price point the sell side picks up
2:33:44those orders
2:33:44for short holders but the buy
2:33:48traders are held the level is held it
2:33:51doesn't move it sits there
2:33:54and the same is done in the opposite
2:33:55direction
2:33:57at the top of the price range the sell
2:34:00orders are held
2:34:03and the spread is opened up to pick up
2:34:04any buyer or buy orders on the other
2:34:06side
2:34:07they work to spread against you
2:34:13they work to spread against you to pick
2:34:15up the orders
2:34:17okay some typical stuff that we all know
2:34:19when traders lose money they usually
2:34:21take a day off to re-evaluate their
2:34:23decisions their life
2:34:24their family why the hell they got in
2:34:26this crazy business
2:34:27i've read every freaking book how come i
2:34:29can't make any money
2:34:32market makers know that this is
2:34:34happening they know who they've called
2:34:36out they know who's in trouble they know
2:34:37how much money they made
2:34:42they go into a chop which i showed you
2:34:44on that previous chart it looks like
2:34:45it's level three
2:34:46we call it level three behavior
2:34:50that chop
2:34:54gives you a chance to come back
2:34:55re-participate in the market the levels
2:34:57don't change
2:34:58they hold it they're chopping chopping
2:34:59chopping what happens you go ride around
2:35:01in your car in the middle of the night
2:35:02pissed off
2:35:03go to lunch pet your dog because you've
2:35:06been kicking them all week
2:35:10so they got to hold the market and chop
2:35:11it around to get traders back into the
2:35:12fray
2:35:13the cycle continues the behavior starts
2:35:16over
2:35:18and they suck you in again
2:35:26okay something very important
2:35:29the patterns are the same no matter what
2:35:32time frame you're looking at
2:35:35a multi-session mrw
2:35:39will look a little different on a
2:35:40one-hour chart or a four-hour chart
2:35:42the four-hour chart might be railroad
2:35:44tracks because it's eight hours
2:35:46two sessions right four hours a candle
2:35:48in four hours out
2:35:51on a railroad track you might get on a
2:35:53one-hour chart you might get one rural
2:35:54track on one side and a spike on the
2:35:56other side of the leg
2:35:59but understand that
2:36:02the w or the m when it's formed it will
2:36:06be very aggressive
2:36:09but once the work is done you will get a
2:36:12straight aggressive move away from it
2:36:16that's where you've been blinked your
2:36:18eyes have been down big in a trade
2:36:20our group goes into profit immediately
2:36:22and stays in profit
2:36:24it's absolutely amazing when you catch
2:36:26it right you'll get you're gonna see
2:36:28you grab second leg m or w right after
2:36:30they issue the second or third spike
2:36:36going to go right into profit
2:36:41some people are asking about the charts
2:36:4315 minutes unless i say otherwise
2:36:45the 1 hour and 15 minute what we're
2:36:47going to talk about in here okay look
2:36:53one two three bars to the low aggressive
2:36:58shifter consolidation zone okay
2:37:02breakout traders had a bad day the
2:37:05shorts got rewarded the longs got
2:37:07punished shorts got rewarded
2:37:09okay aggressive three candle move pins
2:37:12to the bottom
2:37:13notice how the pin spiked to the bottom
2:37:14and pull it away
2:37:18they're snatching the market away from
2:37:21the lower level short holders and
2:37:23jamming them
2:37:25they then quickly pull away and come
2:37:27right back
2:37:29in here in the u.s
2:37:32session they throw two pins to the
2:37:36downside at the appropriate times
2:37:38session changeover brings trade
2:37:44that move fails to take out
2:37:47the london low
2:37:51this move takes hours to develop
2:37:57you now have
2:38:00your weekly reversal it came in late
2:38:03monday that's okay it happens
2:38:05they're not gonna make it wednesday at
2:38:06three o'clock in the morning perfect for
2:38:08you every time
2:38:09you gotta identify what's going on here
2:38:15you have the first hit to the low late
2:38:17monday uh
2:38:18london session the second hit to the low
2:38:20us session
2:38:229 30 change over session change second
2:38:24spike
2:38:25end the session with a false move down
2:38:27first spike
2:38:28start the session with a false move down
2:38:30hammer issued at 9 30 equities open
2:38:34you your trade is entered right there
2:38:36you can't pick a better entry than that
2:38:42stop loss is tight right below the low
2:38:44of the day which happens to be the low
2:38:46of the week
2:38:47you've identified this behavior
2:38:51you can keep your trade hold for three
2:38:54level rise
2:38:55one two
2:38:59three reverse is eminent at the
2:39:01mayonnaise
2:39:02pin to the mayonnaise is a cell you take
2:39:05the reversal here
2:39:06and the day back in consolidation okay
2:39:10i don't want you to take that reversal
2:39:12as a newbie
2:39:18that is mostly a jam move
2:39:21because they've snatched the market away
2:39:22so quickly on the second leg
2:39:24to put all the traders that are short in
2:39:26deep trouble
2:39:28that aggressive move
2:39:31does not always give you a nice
2:39:32retracement to counter
2:39:38okay that's the dnc do not counter
2:39:43v1 and a1 i got slides relax
2:39:46mayonnaise is a 200 ema okay
2:39:52we have our directional bias for the
2:39:53week we have a mini w inside an
2:39:55aggressive w after the false move down
2:39:57three vector candles to the low
2:40:01fake out the traders validate the short
2:40:03orders
2:40:04show a trend continuation what happened
2:40:06in here was
2:40:08you sell the rises in a downtrend so
2:40:10what happened is
2:40:12the traders that were long
2:40:15ended up with a scratch plus one when
2:40:16they came back
2:40:20the traders that thought they were right
2:40:24and had their stops all aggregated in
2:40:26here
2:40:26are now stopped out on the second leg
2:40:29any pending orders that were trying to
2:40:31catch the break below the low
2:40:34were validated or turned hot on a
2:40:36widening of the spread at the lowest
2:40:38point on the chart
2:40:39second leg intraday uh us session entry
2:40:42using rabbit
2:40:43this hammer when that hammer pulls back
2:40:47that was solid red at one time right
2:40:49that went down there all the way down to
2:40:50the low of the day came right near the
2:40:52low and sat there
2:40:54when you start watching this it's
2:40:56crazy the candle will go solid red all
2:40:58the way down there and sit there
2:41:00and you're like the hell's wrong with
2:41:01that camera did it die did my computer
2:41:02feed stop it's just sitting there at the
2:41:04bottom
2:41:05the candle sits at the low of the day
2:41:08some dealers will
2:41:09you can see that some dealers you cannot
2:41:11but if you put the bid and ask line
2:41:13on your live chart you will watch those
2:41:16two lines separate
2:41:19the separation of those two lines or the
2:41:22widening of the spread
2:41:24lets you know i got these bastards today
2:41:29because they're punishing the retail
2:41:30traders with pending orders that are
2:41:32sitting below those price points
2:41:35and stop orders that are sitting below
2:41:36those price points
2:41:38the widening the spread is part of the
2:41:40confirmation process
2:41:44if they widen the spread a few pips near
2:41:46the low
2:41:48on the second or third pass to the low
2:41:51you got it today you own it
2:41:55validation comes in when they complete
2:41:58the candle at the end of the 15-minute
2:42:00cycle
2:42:01and issue a hammer at 9 45.
2:42:07that is the confirmed locked reversal
2:42:12confirmed by their behaviors at the
2:42:14appropriate timings
2:42:18you got it you enter on the open of the
2:42:19next candle stop loss goes below
2:42:24the low candle or the low of the day you
2:42:26look at the big board
2:42:27i'll talk about stops and we'll look at
2:42:28the big board and stuff
2:42:31they immediately shift the market or
2:42:33shift the zone away from the lower level
2:42:34short sellers
2:42:35and in one candle take back all of this
2:42:38damage see this square right here
2:42:40this candle seems to take all that back
2:42:42in about 15 to 30 minutes
2:42:45you know when they shift the zone and
2:42:48snatch the market away from those guys
2:42:51game on you got it today that is the
2:42:54confirmation you need
2:42:55to know you're in the right directional
2:42:57move
2:42:59they'll shift the zone in one big candle
2:43:0015 to 30 pips
2:43:02they'll shift the zone and two candles
2:43:0415 20 pips apiece
2:43:06but the shifting of the zone comes in a
2:43:0825 to 50 pip move
2:43:10to get the hell out of there they want
2:43:12to get the hell out of there to put all
2:43:14the retail traders into a panic
2:43:16and it works you lift your stop you get
2:43:19nervous you're like oh crap oh crap what
2:43:20did i do what did i do
2:43:22the shifting of the zone creates the
2:43:24fear and greed that you're afraid of in
2:43:26trading
2:43:27so when they shift the zone and jam you
2:43:30you go into profit trading this method
2:43:32you know you got it
2:43:33that is further confirmation that you
2:43:36have caught the right directional bias
2:43:38off of the low of the day
2:43:41think about what you got okay
2:43:44consolidation 41 pip channel
2:43:47blue box okay i'll circle what i'm
2:43:50talking about there's the width of the
2:43:51box
2:43:51initial high to initial low is 41 pips
2:43:55market makers come out they show one two
2:43:57three to the low
2:43:59you guys weren't falling for it they
2:44:01came back one two three to the low one
2:44:02more time vector
2:44:04a big anomaly on the chart a spike
2:44:07retail trader perceived momentum
2:44:10the vector is retail trade and perceived
2:44:12momentum
2:44:14you take that break down they
2:44:16immediately put the brakes
2:44:18on and issued two pins to the low it's
2:44:20kind of funny the pins turn to the
2:44:21downside i don't see any pins on the
2:44:23other candles coming down
2:44:24but now the pins are on the downside
2:44:26they pick up the orders and snatch it
2:44:28away
2:44:28pick up the orders and snatch it away
2:44:31now they got you
2:44:32if you're a retailer they quickly pull
2:44:35back
2:44:38that pullback towards the 50 validates
2:44:41the
2:44:42what the hell is a rally based drop b i
2:44:44don't drop base rally or some crap that
2:44:46they teach in these other schools i
2:44:47can't remember how it goes
2:44:48but anyway
2:44:51but it's a two-pronged approach it also
2:44:54triggers the stops on the second pass
2:44:56down
2:44:57of anybody that was long and got it
2:44:59right
2:45:02and it also lets those traders that end
2:45:06up in a plus one or a scratch makes you
2:45:08scratch out
2:45:09with plus one or plus three or minus
2:45:11five
2:45:13there's a lot going on in that
2:45:14aggressive w formation understand same
2:45:16thing in the m
2:45:21again they flip the pins to the downside
2:45:23to trap the traders at the lower levels
2:45:26because after all the 50 and the 200 are
2:45:29wide open
2:45:31so you got anticipated continuation down
2:45:36but we know now that if the low that was
2:45:38formed during london holds
2:45:40and they make two more passes out at
2:45:41forming another w and issue a hammer at
2:45:449 45
2:45:45it's game over you are a buyer against
2:45:48the retail trend
2:45:49in line with the market maker you own
2:45:51these bastards today
2:45:55further confirmation is seen on the
2:45:57shift of the zone off of the low
2:45:59to further trap the lower level short
2:46:01sellers and to take out the entire six
2:46:03eight hours of structure work
2:46:05all in here that they've done that one
2:46:08candle destroys the entire structure
2:46:10that was built
2:46:11against the retail traders trapping them
2:46:13all
2:46:15the market is then into consolidation
2:46:19to create false sense of security for
2:46:22the downtown
2:46:23downtrend continuation
2:46:26it is again shifted away to trigger the
2:46:28stops bounce off the 200 pins
2:46:31to the mayonnaise and ends the day back
2:46:34in consolidation their business is done
2:46:35for the day they did their damage
2:46:38okay you guys good understand
2:46:43now i have my bias
2:46:48i know what to expect the next night
2:46:54i expect stop hunt low rise
2:47:00the next night i expect stop hunt low
2:47:04rise
2:47:06they messed with you on the timings on
2:47:08this particular chart
2:47:09because they did the stop on low and
2:47:11rise by the time you come to your
2:47:12terminal at london open it happen in
2:47:14asia you missed it
2:47:17not a big deal
2:47:23but right at the end of the box they
2:47:24threw railroad tracks to the low and
2:47:26they even threw a hammer there's a w
2:47:27in there or there's a v bottom you
2:47:30expect this and they gave it to you
2:47:37see it okay they come out of the box
2:47:41they go low you are a buyer against the
2:47:44retail trader mentality long
2:47:47because you have your w formation that's
2:47:49your anchor point for the week
2:47:51w v v
2:47:55m sorry about your luck
2:47:59do not counter this this is a counter
2:48:02here that worked
2:48:03do not counter here i'm sorry at v1
2:48:07do not counter at v1 it doesn't give you
2:48:09the trade
2:48:10see the setup it does not offer you the
2:48:13retracement to counter
2:48:15it doesn't pay out
2:48:22now notice how the pins flip to the top
2:48:26side
2:48:27notice how they flip to the downside
2:48:29over here notice how the aggressive
2:48:30moves end in pins to the top side
2:48:33railroad tracks at the us session this
2:48:35is level three behavior chop
2:48:38one two three days of rise is seen
2:48:42the skies in different sessions moved
2:48:44over a little bit to mess with your
2:48:45timing
2:48:49market makers give it out give it out
2:48:52give it out
2:48:52need some back
2:48:59sell to the buyer sell to the buyer sell
2:49:01to the buyers i need some of my money
2:49:03back man
2:49:04correct the market
2:49:10okay hope you guys are seeing this stuff
2:49:14okay remember i mentioned the thing
2:49:15market makers will not move in one
2:49:17direction more than three days in a row
2:49:19without some type of collection of money
2:49:23i know you say steve the euro's been
2:49:25rising since my birthday whatever i
2:49:26understand that
2:49:28it didn't make a straight rise candles
2:49:29aren't stacked on top of each other
2:49:30straight up
2:49:31to heaven they have to make pullbacks
2:49:38now remember the psychology element
2:49:39that's built in
2:49:42the psychology element warrants that you
2:49:45will get on the trend
2:49:46at the worst possible time because of
2:49:48the three pushes inside
2:49:51the chart
2:49:59they show you something they get the
2:50:02whole world seeing it technically
2:50:05and then they act against it and mess
2:50:06with you
2:50:12notice the breakdown of this chart okay
2:50:15this is an entire week here's my sunday
2:50:17here's my friday
2:50:19sunday monday tracers right
2:50:22okay let's look at it again now now with
2:50:24a different eye consolidation
2:50:26false move weak beginning w formation
2:50:29multi-session i got a u.s session
2:50:31leg one i got an early asian session leg
2:50:34two
2:50:37right intraday spread out over the day
2:50:40tracer right this is the day changeover
2:50:42this is the 5 pm reset settlement these
2:50:44lines
2:50:46okay friday thursday
2:50:50wednesday tuesday coming out of monday's
2:50:52consolidation
2:50:55midweek reversal
2:50:59aggressive move towards the low
2:51:01validates the crossover down
2:51:04the w formation late us
2:51:07[Music]
2:51:09early asia you missed it but guess what
2:51:12they offer you a pullback in the us
2:51:16there's your peak formation low for the
2:51:18week
2:51:21three levels of rise end on an
2:51:23aggressive railroad track
2:51:24pull back consolidate into thursday
2:51:27repeat the level but murder the stops
2:51:30and pick up the pendings with a monster
2:51:32pin
2:51:32above the first leg the light blue
2:51:36tracer
2:51:41the light blue tracer is yesterday's
2:51:44high and yesterday's low
2:51:46when market makers throw a hammer above
2:51:48the blue tracer
2:51:50that's for all the joe ross followers
2:51:52that take the break out of yesterday's
2:51:54high
2:51:55they snatch those guys and reel them
2:51:56right back in no offense to joe he's a
2:51:58great guy
2:52:00that is our signal notice it's in the
2:52:02red shadow box to enter
2:52:10three days three levels they hit it they
2:52:12pull back
2:52:13they go into consolidation they issue a
2:52:16hammer above yesterday's hod
2:52:20or above which happens to be the high of
2:52:21the week
2:52:23notice how the two come in together the
2:52:25high of the day
2:52:28on thursday coincides with the high of
2:52:31the week
2:52:32they repeat the level on friday trap the
2:52:34traders
2:52:36coming off of the u.s session into
2:52:37consolidation in here
2:52:40then what do they do the pattern
2:52:43continues going into the weekend
2:52:45bam they hold it and they they
2:52:49spike down going into the weekend
2:52:51someone said the sound is bad is it
2:52:56tell me some y's up there if everyone
2:52:58can hear me no okay it's not bad or no
2:52:59it is yes no all right fine okay
2:53:06okay thanks got it all right so now
2:53:10notice the difference in this w how it's
2:53:12tight there's only
2:53:13a few hours in between this one is a
2:53:15whole day in between
2:53:17this is london open
2:53:20re-hit again almost in the us session
2:53:22with a monster spike to the high
2:53:24the monster spike to the high lets you
2:53:27know that they grabbed what they needed
2:53:28to grab
2:53:30when you see that spike close
2:53:34the damage is done to the retail traders
2:53:38that spike is the aftermath or the wake
2:53:41of what they have done
2:53:47what do they use to create the spike
2:53:49could be news could be
2:53:51could be your mother stubbed a toe
2:53:54it doesn't matter the behaviors are the
2:53:56same
2:53:57they use the news to create that spike
2:54:01or create some type of anomaly on the
2:54:03chart to get you to fall for it
2:54:09listen the retail side of the business
2:54:13works where these guys wouldn't be so
2:54:18wealthy
2:54:21okay
2:54:25okay so now you got trend is down
2:54:28level three correction you see this
2:54:31formation going into the us session
2:54:33they hold the level overnight
2:54:36but you know the high was formed they
2:54:38repeat the high you're
2:54:39you're a seller against
2:54:42everybody else you know that in level
2:54:46three
2:54:48the trend cannot go down forever and
2:54:51does not go down forever
2:54:54you identify late in the us session
2:54:58railroad tracks and then consolidation
2:55:00to end the day
2:55:03you are a buyer
2:55:07against the retail traders down move
2:55:12and here's how it played out this is we
2:55:14call a half a batman
2:55:17they hit the stops one more time if you
2:55:20weren't already in and you happen to be
2:55:21in front of your terminal you're a buyer
2:55:23right there
2:55:25i want to say two three weeks ago i
2:55:27think rick's in here uh
2:55:31there was a monster w formation in the
2:55:34asian crosses i missed it i was eating a
2:55:36cheesecake factory
2:55:37that piece of cheesecake cost me
2:55:38thousands
2:55:40it was double railroad tracks in the
2:55:42asian session
2:55:44on gj ej and i think rick just happened
2:55:48to be in front of the terminal and
2:55:49caught that 80 lots long
2:55:52i don't know if that was okay to say
2:55:53rick but sorry
2:55:56and i think he booked a monster game
2:55:59that day
2:56:02so my cheesecake cost me
2:56:07i only want to say the number out loud
2:56:08it makes me sick it was such an obvious
2:56:11trade
2:56:15that i promise you when you go back
2:56:17you'll see it i want you to go back
2:56:18write it down go back to gj and ej
2:56:21i want to say about two or three weeks
2:56:22ago
2:56:24i think i was actually at the columbia
2:56:26i'm at the beach so not now i'm
2:56:28staying at the beach but
2:56:31i think i missed that i was like eating
2:56:33i don't know
2:56:34yellow rice and chicken or something my
2:56:36gosh anyway
2:56:38the moves are in there go back and try
2:56:40to identify that
2:56:46okay i've been talking about their
2:56:48structures let's talk about
2:56:51the entire structure let me explain to
2:56:53you one more time if you're sick of
2:56:54hearing it i'm sorry
2:56:55but this is i mentioned to you already
2:56:58is the whole business you got to get
2:56:59this
2:56:59you got to understand
2:57:03okay every single day during initial
2:57:06market hours
2:57:07asian session they're going to set the
2:57:09high and low it's the initial high and
2:57:11low
2:57:13they trade within that range and allow
2:57:15people to build positions
2:57:17but not allowing anyone to take much of
2:57:19a profit
2:57:21this is why you don't trade dave asia
2:57:22session
2:57:27they then spread the swing what time one
2:57:30and two am
2:57:31they widen the swing that widening of
2:57:34the swing comes in before the london
2:57:35open
2:57:38because the asian market maker wants to
2:57:40validate
2:57:41the pending orders for the breakout
2:57:43traders
2:57:45okay
2:57:48at the start of the european session
2:57:50anybody 3 30
2:57:54they will severely correct a rise
2:57:56against their real intentions
2:57:58stop hunt false move against what
2:57:59they're really going to do for the day
2:58:06the drop will rise
2:58:10will trigger all the stops of the weaker
2:58:12traders the ones that have taken the
2:58:13school the regular technicals read the
2:58:15books
2:58:16the stop losses that go five to seven
2:58:17pips below your entry candle or above
2:58:19your entry candle
2:58:22the weaker retail traders
2:58:25that have fallen into some proverb that
2:58:28says if you're gonna lose don't lose a
2:58:29lot and make a really tight stop
2:58:30it's
2:58:34they then quickly go into consolidation
2:58:37they don't have a chest cold
2:58:38the market doesn't have the flu
2:58:42they are accumulating contracts at
2:58:43another level
2:58:49they will hit the stops one more time as
2:58:52i showed you on the previous chart
2:58:53they threw the spike above to trigger
2:58:57the stops and pick up the pendings on
2:58:58the other leg the second leg
2:59:05this action leaves the lower level or
2:59:07higher level traders
2:59:09stunned and stopped out and then
2:59:12in one bar they will shift the zone
2:59:17and trap all the retail traders at the
2:59:19lower or higher levels
2:59:21and that's it
2:59:24all right i'm gonna back up someone said
2:59:25they wanted to write the chart actually
2:59:27a lot of people said i'm sorry
2:59:28let me leave this up i'll shut up for a
2:59:30minute and then we'll go back to the
2:59:31other one okay
2:59:34i just realized that what i should do is
2:59:36why don't you mark down
2:59:38the stuff you want and then go back and
2:59:40listen to the recording and get it is
2:59:41that wouldn't that be better
2:59:42than holding me up because everyone's at
2:59:45a different pace people are writing
2:59:47i think that is better right i always
2:59:48remember it's about halfway through the
2:59:50first day
2:59:54yep make a note that hey i want to see
2:59:57the section that was at 9 50 p.m and
3:00:00then go back and move up to that
3:00:01timeline
3:00:03okay yeah i think everyone's agreeing
3:00:06that i can just get through the slides
3:00:08and flow the flow the recordings then
3:00:09you go back
3:00:10okay sorry all right
3:00:14this is exactly what i'm talking about
3:00:17you have the asian range right r
3:00:19equals range 51.4 pips
3:00:22the ideal asian range is 50 pips or less
3:00:27the 50 pips or less allows you to see
3:00:31the stop hunts clearly the stop hunts
3:00:34come in
3:00:3525 to 50 pips below the box
3:00:40and above the box ah now it makes sense
3:00:42what this is
3:00:44here's the 25 marker here's the 50
3:00:47marker
3:00:49the shadow box highlights
3:00:56the brinks trade setups is it always
3:00:58going to fire in the brinks trade box
3:01:00no but you have to have a deeper
3:01:02understanding of what's going on
3:01:07okay so let's walk through this chart
3:01:13you have consolidation right you have a
3:01:15pin to the low right here
3:01:17maybe they picked up some pendings i
3:01:19don't know what happened here but here's
3:01:20what goes on
3:01:21towards the end of the session before
3:01:23the start they shifted the zone away
3:01:26from higher level holders in here
3:01:28but they stayed in consolidation
3:01:32you see that
3:01:35your job is to be smarter than a piece
3:01:39of blue
3:01:39ribbon that paints on a chart
3:01:43your job is to reevaluate or
3:01:45reconsolidate the zone
3:01:47and realize they have not made a very
3:01:49aggressive move yet
3:01:54when you reevaluate the consolidation
3:01:57you then have your three vector pushes
3:01:59with a nice hammer to the low
3:02:03notice how they went past the blue
3:02:04tracer into the stop hunt zone even
3:02:07spiked through it
3:02:08but they issued a hammer right here
3:02:11just outside that was bad
3:02:15just outside the shadow box
3:02:19session beginning the timings are off by
3:02:22a few bars big deal you know better
3:02:26they quickly pull back
3:02:29go into consolidation to collect
3:02:31positions
3:02:35validate the short orders
3:02:40okay now notice something crazy
3:02:46this candle comes all the way back to
3:02:49the low of the day
3:02:50just enough to pick up anybody that was
3:02:53in here
3:02:54anybody that got it in here and that was
3:02:56right
3:02:59because of the size of this candle
3:03:02this would be a pass entry for our group
3:03:05because they shifted the zone if you
3:03:07didn't get your entry in here
3:03:10you when they shift the zone it's too
3:03:12late i don't want you chasing it
3:03:16why think about the size of your
3:03:18stop-loss the appropriate stop-loss
3:03:21goes below the low of the day
3:03:25but steve it runs perfect of course it
3:03:27did you could see it in hindsight of
3:03:29course it did
3:03:30but how do you know they're not going to
3:03:31come back for the for another pass
3:03:34you don't know that
3:03:40the stop-loss goes where it goes i can't
3:03:42help it i'm going to talk about it
3:03:47jose doesn't know me that's where i got
3:03:49in jose i got him right there buddy
3:03:55i know people are saying thoughts on i'm
3:03:56kidding man
3:03:58i wish i was that good all right look
3:04:03because of the size of the shift of the
3:04:05zone that's a note that's a pass
3:04:07but if you saw the hammer issue just
3:04:09outside the shadow box in the stop hunt
3:04:11region
3:04:11you could have taken the trade anywhere
3:04:13in here stop loss goes below the low
3:04:17that is a granny entry okay now
3:04:22the low should hold for 30
3:04:25to 90 minutes
3:04:31and safe to enter if you have all the
3:04:34other elements in line
3:04:36they issue a hammer just outside the
3:04:37shadow in the stop on zone it happens to
3:04:39be laying on the four hour timeline
3:04:41which is the blueberry we'll talk about
3:04:42it
3:04:44they had their three vector candles on a
3:04:46reconsolidation of the zone
3:04:49right you extended the blue box you know
3:04:51better man that's consolidation
3:04:52there's three vectors to the low vector
3:04:54candles to the low
3:04:55they ended on a hammer pull back this is
3:04:58an outside bar
3:05:00i don't care if it has a pin i don't
3:05:01care where it closes this bar
3:05:04is an outside man i'm so close to the
3:05:06edge i keep changing the slide i'm very
3:05:07sorry
3:05:09this this slide right here this is an
3:05:11outside bar
3:05:13how could that be an outside bar because
3:05:15it forms the low of the day
3:05:17and the consolidation is off of it it's
3:05:19inside
3:05:20the consolidation is inside the low of
3:05:22the day formation
3:05:23that's an outside bar
3:05:29okay when market makers trade inside
3:05:32this
3:05:33spike to the low bar that's a clue for
3:05:35you that the low is forming
3:05:37because the spike here forms the low of
3:05:39the day
3:05:42the consolidation validates that you are
3:05:45at the lod
3:05:46the fact that they spiked past the light
3:05:48blue tracer
3:05:50validates you're at the lod the fact
3:05:52that they spike
3:05:53the four hour ema validates you at the
3:05:57low of the day
3:05:58the fact that you're in the shadow box
3:06:00and they spiked past the shadow box and
3:06:02came back
3:06:03validate you were at the lod those are
3:06:06the clues to the puzzle you got to put
3:06:07together
3:06:10we like to wait for the second pass but
3:06:12you got a lot of opportunity in here
3:06:14this candle comes back to bust your
3:06:16chops a little bit may or may not get
3:06:17you
3:06:18not a big deal don't worry about it
3:06:21there'll be another setup just like it
3:06:22tomorrow promise and that candle won't
3:06:23be so big
3:06:28okay see it
3:06:33all right it's ten let's take a five
3:06:35minute break
3:06:37we're gonna go into the count and we
3:06:40will end here tonight after this lesson
3:06:43the count discusses the levels
3:06:46all right so let me get my little seven
3:06:48minute stopwatch up someone asked where
3:06:50i got that from it's uh
3:06:51like stopwatch.com or something it's
3:06:54www.online
3:07:03okay everybody back good all right hear
3:07:06me all that stuff
3:07:07all right some of you asking about the
3:07:08stuff on the charts
3:07:12robert you're not the only one don't
3:07:14worry about that stuff right now i'm
3:07:15going to break it all down for you what
3:07:16i want to do is i want to
3:07:18strip away the concepts that you have
3:07:21about the market right now and i want
3:07:22you to
3:07:23look at the big picture of what these
3:07:24guys are up to don't worry about a box
3:07:26of shadow i'm going to cover all that
3:07:27it's on there
3:07:29i know it's in my charts because that's
3:07:31the templates i took the pictures off of
3:07:34just open your mind to what's going on
3:07:39okay and i'm going to tell you what the
3:07:40box is what the arrows are with the
3:07:42average i'm going to tell you all that
3:07:43stuff
3:07:44just right now i want you to grasp the
3:07:46concept okay
3:07:49all right so let's get going i didn't
3:07:50see any questions other than that that i
3:07:52need to address right now we'll take
3:07:53some questions at the end when i give
3:07:54you your homework okay
3:07:57the count the third most important
3:08:00element of the system is the levels or
3:08:01the count to know where you are in the
3:08:04cycle
3:08:06right you need to look walk up to a
3:08:08chart
3:08:11and go
3:08:14okay midweek reversal w's anchored in
3:08:17second session
3:08:19w v v m wednesday thursday friday
3:08:22reverse
3:08:24that's why you don't need to spend days
3:08:26and hours doing technical analysis
3:08:28when you become proficient and can
3:08:31identify the midweek reversal or the
3:08:34peak formation anchor points of the
3:08:36cycle
3:08:40you'll be quickly able to identify the
3:08:42technicals
3:08:43on the market maker side of the market
3:08:45not on the
3:08:47where the average crossed over what part
3:08:49of the cycle am i at
3:08:50is that support and resistance from
3:08:52october 1905
3:08:54will that hold understand
3:08:58i said this in my presentation on the
3:08:59sales side of the business
3:09:02that you don't got to spend hours and
3:09:03hours trying to analyze the technicals
3:09:06you analyze a chart over three to five
3:09:08days i
3:09:09identify the anchor point start of the
3:09:11cycle
3:09:12and you know what to expect on every
3:09:14pair any given time
3:09:16because the market makers have their own
3:09:18cycle and their own way of handling
3:09:20things
3:09:22you now know
3:09:25how to handle that well you're getting
3:09:28there or i'm getting you there we'll
3:09:29figure it out okay
3:09:30all right
3:09:35the cycle as i said earlier is based on
3:09:37traitor psychology
3:09:39really it's based on human psychology
3:09:43fear greed and inexperience are used to
3:09:45prey upon the traitors
3:09:47the newbies that don't know anything
3:09:49fear that you're missing the move greed
3:09:51that you're gonna maximize your gain
3:09:53those are the emotions that everybody
3:09:55feels in this business
3:09:59as i drew the pattern for you earlier
3:10:01there are intraday counts and counts
3:10:03over several days the weekly cycle
3:10:08they are all there to trap the traitors
3:10:12and grab your hard-earned equity
3:10:20i've seen people write this a couple of
3:10:21times to me and chat oh elliott wave
3:10:24blah blah no
3:10:26do not associate this with elliott wave
3:10:28or any other indicator
3:10:34market makers form zones or levels to
3:10:38trap the traders
3:10:39book their profits and hit the stops
3:10:44sometimes it's like a joke you can see
3:10:46it like stairs it's so easy
3:10:48sometimes it's not so easy
3:10:52understand that at level one and level
3:10:55three
3:10:56the aggressive moves are seen
3:10:59why they just made a huge run
3:11:02they snagged the traders some amount of
3:11:04money is stuck they want to hit the
3:11:08stops in both directions collect up the
3:11:10contracts
3:11:11and then trap another fresh batch of
3:11:12traders the other way
3:11:15the m w's form at these levels
3:11:22okay
3:11:26there are three levels of correction or
3:11:29rise
3:11:30over three days
3:11:34could it be two and a half days yes
3:11:37there are also three levels intraday
3:11:42the three bursts
3:11:45if you know where you are in the cycle
3:11:49easy to pick your directional bias and
3:11:51take your trades
3:11:55the first level of the correction in
3:11:58this example
3:12:00is driven by the market maker
3:12:03you will see the fast moves on light
3:12:05volume you can't tell volume by the way
3:12:07you just know by the move
3:12:10the guys that trade the breakouts with
3:12:12craig and understand this stuff
3:12:15think for a minute even if you haven't
3:12:17traded with craig just think for a
3:12:18minute open your mind for a second
3:12:20ever seen a candle spike really fast
3:12:24in a textbook that is written as
3:12:26momentum
3:12:28but what's really going on is the market
3:12:30makers flashing the pair with as little
3:12:32money as humanly possible
3:12:34to get it to move or spike
3:12:39and other times you've seen the breakout
3:12:41slow and steady
3:12:42a smooth run
3:12:46the slow and steady move is the real
3:12:48directional move by the market maker
3:12:56so the first level correction is created
3:12:57with a flash into a pair he might do it
3:12:59on a cross
3:13:00he might do it with the cross whatever
3:13:02to save money i'll talk about that
3:13:05the second level of the correction is
3:13:08market driven and absent of the market
3:13:10make an absence of the market maker
3:13:12why he wants to see
3:13:15where the retail traders will push it so
3:13:17what happens is this
3:13:19he creates a stop hunt high spike pulls
3:13:21back
3:13:22hits the second leg again starts the
3:13:24direction and steps aside
3:13:28he wants to see what the traders will do
3:13:31going into level two
3:13:32will they buy will they sell how will
3:13:33they how will they set the straddle
3:13:35how will the contracts or the money be
3:13:38set up
3:13:42the third level of the correction when
3:13:44you get to level three
3:13:46is again picked up by the market maker
3:13:48he puts the brakes on
3:13:50so that's far enough today
3:13:55he'll trigger the stops again make the
3:13:56push validate the abcd lightning bolt
3:13:59and create more panic in the market
3:14:03so understand level one and level three
3:14:05since they are driven by the market
3:14:07maker
3:14:07will be more aggressive
3:14:11those are the moves that have been
3:14:12scaring you out of good trades
3:14:15because you didn't understand that he
3:14:17was doing it to you
3:14:22during the levels market makers will buy
3:14:26from the traders to create their
3:14:28positions
3:14:29with the heaviest volume being seen at
3:14:31level three
3:14:33at level three they're all in
3:14:36they gotta reverse and collect their
3:14:38equity back
3:14:42understand
3:14:48when the signal appears simply buy or
3:14:51sell
3:14:52third level rises and third level
3:14:54corrections against the retail traders
3:14:59lights out if you can count to three
3:15:02profit will be realizing these trades
3:15:04it's it's a joke over simplification
3:15:11okay is there sound issues
3:15:17no okay cool
3:15:23okay now this is going to piss you off
3:15:25it should
3:15:29in addition to each of the three levels
3:15:31there is a corresponding level of
3:15:33consolidation
3:15:35level one level one consolidation level
3:15:37two level two consolidation
3:15:40most of the time
3:15:44when this is going on the stops are
3:15:46triggered in both directions
3:15:48before the next level it started
3:15:53the zones create 20 to 30 pip swings
3:15:57be visible on the chart market makers
3:16:01are trying to hit the stops
3:16:04both ways to make easy work of the next
3:16:07level
3:16:08they're trying to take the buying or
3:16:09selling pressure off
3:16:11from the market so they slap it both
3:16:13ways
3:16:14that is where if you guys ever seen
3:16:17those little they call them pennants i
3:16:18hate that terminology because
3:16:20i don't like any of that stuff it's
3:16:21garbage but look
3:16:24you have the move right they go down
3:16:25they consolidate then what happens is it
3:16:27creates like a
3:16:28little wedge right in there right then
3:16:29they break for the next level then they
3:16:31go like this
3:16:34forms another wedge right then they do
3:16:36it again
3:16:38now you're going to notice the pins
3:16:39start to the downside
3:16:41then they'll reverse one two
3:16:45three sorry about your luck
3:16:50okay let me clean the jar back up
3:16:54okay so now write this down and think
3:16:56for a minute
3:17:00market maker jumps in 3 30 4 o'clock in
3:17:03the morning 3 30
3:17:043 45 ideal right he jumps in
3:17:08he creates the move starts to panic he
3:17:10shows you breakout vector candles the
3:17:11wrong way
3:17:12he's showing you something get the
3:17:14retail guys to bite
3:17:16retail guys bite the wrong way he's got
3:17:19him he pulls back quickly off of the
3:17:21high
3:17:25he goes at it again one more time to
3:17:26validate hit the stops
3:17:28he then shifts away from that 25 to 50
3:17:32pips in the first level and goes into
3:17:33consolidation
3:17:38he then swings both ways he may come
3:17:41back towards the high of the day
3:17:45that move coming out of level one
3:17:48consolidation back towards the higher
3:17:49back towards the low scares you out of a
3:17:51good
3:17:52trade
3:17:55scaring you out of a good trade is his
3:17:58job to make sure you don't actually make
3:17:59any money when you're right
3:18:04each zone of consolidation creates
3:18:07a little tiny wedge if you will on the
3:18:10chart
3:18:13the pins are issued in both directions
3:18:16and then the next level drop arises seen
3:18:20he stands aside during that cycle cycle
3:18:23two
3:18:24level two uh level two consum forming
3:18:29sees how the orders are set
3:18:34and then he says okay that's enough and
3:18:35he reels it back in
3:18:40he then switches the pins against the
3:18:43move
3:18:45so if the cycle is down the pins will
3:18:48start going to the downside at level
3:18:50three
3:18:52you'll see the spike candles more
3:18:53aggressive moves will be seen
3:18:55towards the downside if price is rising
3:18:58in level three as shown
3:18:59the spikes will turn to the top side
3:19:02why he's trying to trap the traitors
3:19:05before he reverses
3:19:09okay
3:19:12think
3:19:16all right let's have a look
3:19:21get my little pen this is classified by
3:19:23the way i can show it to you but then i
3:19:24have to kill you at the end of the
3:19:25seminar all right look
3:19:26three hits to the high didn't just this
3:19:28exactly just happened this slides like
3:19:30two years old man
3:19:33remember i told you we pulled the
3:19:34curtain out from behind oz it's the same
3:19:36every single day day in and day out
3:19:39three hits to the high
3:19:40stop hunting london open hammer at 3 45
3:19:43and 9 45.
3:19:45that's all they got it's the same move
3:19:47over and over
3:19:49once you can identify it you own them
3:19:55okay so now market maker starts to stop
3:20:00hunt creates the panic
3:20:01you reevaluate your your consolidation
3:20:04zone he goes vector to the high on you
3:20:08he doesn't take out the previous high
3:20:10second leg m bam
3:20:13peak formation is formed you enter
3:20:15somewhere in here you got about an hour
3:20:16to decide
3:20:19level one correction
3:20:22pins down pins up
3:20:26i see what you mean about the color let
3:20:27me change it let me find something
3:20:29pretty like a yellow
3:20:31okay wow erased it sorry
3:20:35i don't know if that's any better
3:20:36correction right we enter in here
3:20:40pins up pins down forms kind of a little
3:20:43pullback wedge right
3:20:46level two of the correction is smaller
3:20:48and weaker but again market makers
3:20:51hit the pins on both sides before the
3:20:54next level
3:20:56is commenced now something kind of funny
3:20:58happens
3:20:59he goes into level three correction he's
3:21:02got vector to the low in here
3:21:06three pushes down to finish out the
3:21:08level right funny how i only see pins on
3:21:10the bottom now
3:21:13here and here and here
3:21:17those candles were all the way down at
3:21:19one time he's working the low
3:21:23now we know we've had on average of 50
3:21:26pip drop per level so we're at 80 r 150
3:21:29pips
3:21:30at 150 pips adr
3:21:34he starts issuing a pin at the bottom of
3:21:36the candle the pin is a wick on the
3:21:38candle whoever's asking
3:21:40he starts issuing pins at the bottom
3:21:43do you notice that there's no pins on
3:21:45the top of these candles
3:21:47not necessary i'm trying to trap short
3:21:49holders
3:21:51so i pushed the market down push the
3:21:52market down bam snatch it away gotcha
3:21:55i hang around for 45 minutes push the
3:21:58market down push the market down bam
3:21:59gotcha
3:22:00hang around for an hour push the market
3:22:02down push the market down bam
3:22:04gotcha the third confirmation doesn't
3:22:07happen very often but i like this chart
3:22:09because
3:22:10there was three confirmations here
3:22:15and then three mini confirmations i
3:22:16can't draw it down there it'll change
3:22:18the slide
3:22:18sorry and three mini confirmations one
3:22:22two three do you see how three plays
3:22:25into the psychology almost always on
3:22:27these charts
3:22:29three hits to the high three levels of
3:22:31drop vector three
3:22:33three pushes to the low three pushes to
3:22:34the high three pins to the low
3:22:40in the retail world that gets you to
3:22:42chase the wrong setups
3:22:44in our world to get you to identify his
3:22:46behavior and beat him
3:22:53understand that this happens
3:22:57all the time in the market in every
3:22:59market
3:23:01you just have to identify it in real
3:23:03time and the journey starts tonight
3:23:12okay pretty cool stuff i i'm a little
3:23:14excited i don't know i really like this
3:23:15stuff
3:23:19okay i can't change the slide it jammed
3:23:21there we go all right
3:23:23now here you are again
3:23:28variation on the theme time
3:23:31consolidation one two
3:23:35three to the high to end the session
3:23:37vector
3:23:41happen to have a little news in here
3:23:42market makers hit the stops in both
3:23:43directions with a spike
3:23:45that trades still good how do i know
3:23:49the high was not taken out the high
3:23:51happened to hold
3:23:53you have your peak formation high you
3:23:54have your high of the day
3:23:56us session and you also have your peak
3:23:58formation high of the week
3:24:01what do i expect tomorrow i expect
3:24:07stop hunt rise drop
3:24:11why because i got the cycle now i nailed
3:24:13it it's anchored
3:24:15okay notice something kind of crazy in
3:24:17here too there's three vectors in here
3:24:20on the downside and then notice
3:24:22something else in here there's three
3:24:23little baby vectors in there
3:24:26then they come back in the second leg
3:24:28form the w out and reverse this is not a
3:24:30very good counter remember
3:24:34okay consolidation
3:24:38stop hunt high
3:24:42this one happens to be i'm gonna
3:24:45write this initials down you're gonna
3:24:48say what the hell
3:24:50that's a stop hunt high hold the mayo
3:24:54it's not a sandwich it's a trade
3:24:58stop hunt high hold the mayo is simply
3:25:00market makers came out of the box out of
3:25:02the consolidation
3:25:04they used the 200 moving average as the
3:25:06trigger
3:25:08which offered resistance at the perfect
3:25:10timing at the stop hunt
3:25:12you know that this trade is a drop
3:25:16how do you know because you already got
3:25:18your high of the week high of the day
3:25:20peak formation
3:25:23stop hunt high hold the mayo the stop
3:25:25hunt trigger bars are held
3:25:27in place by the mayonnaise this is also
3:25:29two pins to the mayonnaise
3:25:34okay you have your drop
3:25:37this is an example of where you have one
3:25:38level of move and then you have
3:25:40two and three the next day then what do
3:25:44you have
3:25:44just outside the red box they issue a
3:25:47hammer
3:25:47to trigger the stops of the continued or
3:25:50the people that got it right long
3:25:53second leg right they come in session
3:25:55changeover
3:25:56they need to hit it one more time to get
3:25:58the stops that's your entry
3:26:03back in the consolidation and the day
3:26:06they end the day always how they start
3:26:08the day
3:26:10okay away from
3:26:15the traders that are jammed up down here
3:26:17they want to stick them
3:26:19okay
3:26:24okay good stuff
3:26:27all right the peak formation started
3:26:32the end of the week on friday in this
3:26:34example
3:26:38stop hunt high sell
3:26:42they push down see the low
3:26:45that blue tracer lets me know that
3:26:48yesterday
3:26:50the price came in like this
3:26:54when they go back to that i got it
3:26:58second leg same level failed to break
3:27:01second leg same level failed to break
3:27:03that's a big
3:27:04fat w staring at you
3:27:08that's good for about i don't know 4 500
3:27:10pips 300 pips
3:27:11the retracement's 140 that's a 300 pip
3:27:15move
3:27:16continuation from friday
3:27:19notice how
3:27:23they caught the retailers with the gap
3:27:26right there we don't fall for that crap
3:27:28we don't care we got peak formation low
3:27:31pfl peak formation low that looks like
3:27:33an e sorry
3:27:36here let me take you to that peak
3:27:37formation low
3:27:41sunday going into monday there's your
3:27:42gap readjust your consolidation
3:27:45for the breakout guys readjust your
3:27:48market maker spread there's your initial
3:27:50hod initial low
3:27:53in here readjust because they gapped and
3:27:56shifted away
3:27:57they gapped and shifted away they don't
3:27:59want anybody to have a profit they got
3:28:00them stuck
3:28:01now they come back london open w
3:28:05formation second leg happens to be
3:28:07railroad tracks straight rise
3:28:11do not hold over the weekend i'm not
3:28:14telling you to hold over the weekend i'm
3:28:15showing you how to analyze the chart
3:28:16going into monday
3:28:18i see peak formation friday i know where
3:28:21i'm at
3:28:22now coming out i expect straight away
3:28:25why straight away
3:28:26they have to aggressively get the hell
3:28:28out of here
3:28:29because they jammed all these traders
3:28:34right they got to get the hell out of
3:28:35that range because
3:28:37they want to stop everybody out and get
3:28:39them into margin trouble because they
3:28:40know who's in trouble
3:28:41they have their list from the plug-ins
3:28:44they got a hundred million dollars in
3:28:45margin trouble if i clean that out i'll
3:28:47put that in my pocket i'm a market maker
3:28:49so that's where the aggressive break
3:28:51trade comes this also by the way happens
3:28:53to be the day that breakout traders make
3:28:55money
3:28:57second day of the cycle
3:29:03okay in consolidation what do you expect
3:29:06one more night
3:29:08okay what's the cycle w
3:29:11v1 v2 m that's the cycle right
3:29:15anchor point peak formation low
3:29:19day two day three reverse
3:29:22here you go day one rise
3:29:26consolidate back into consolidation
3:29:29stop hunt low rise
3:29:33all of a sudden manny uh the pins turned
3:29:35to the top side
3:29:42three levels of rise built into there
3:29:44they come back just outside the u s open
3:29:47issue railroad tracks
3:29:51retrace 140 pips in case you were bored
3:29:59they don't have unlimited equity they
3:30:02must grab it back at some point in the
3:30:04cycle
3:30:05now we'll talk about the continuation
3:30:07but they can make a w continue on the
3:30:09uptrend over here
3:30:10they book a profit get back into
3:30:13direction why
3:30:14they have longer term goals that they
3:30:16have to be cognizant of
3:30:18if and if you think about this they went
3:30:20three days up three days down the market
3:30:21would never go anywhere it would sit
3:30:23there
3:30:24sideways right and surely you'd figure
3:30:26it out
3:30:27i know craig would because he almost
3:30:28figured this out
3:30:34now if you notice that trade 150 pip
3:30:36retracement two pins to the mayonnaise
3:30:39if they put the second leg in at the
3:30:40mayonnaise
3:30:42there's your stop on low hold the mayo
3:30:44at the u.s session in the red box
3:30:45there's your retracement trade
3:30:48these things repeat over and over and
3:30:50over again
3:30:52and you're going to see them in the
3:30:54charts and once you see them
3:30:56you can't unsee them they're in there
3:31:00okay good stuff hang in there i know you
3:31:04guys are getting tired
3:31:06a few more minutes 10 30ish
3:31:09i don't want to beat you up too long
3:31:11okay now here's the thing that's going
3:31:13to piss you off this pisses me off
3:31:15you know your support and resistance
3:31:17stuff you've been drawn on the
3:31:18chart
3:31:19it's a hoax
3:31:22it's a hoax the consolidation zones
3:31:26created during these moves intraday
3:31:31create false support and resistance
3:31:32level that the market maker puts that's
3:31:35visible on the chart
3:31:40understand what i just said the
3:31:42consolidation zones that he makes
3:31:45on the chart creates false support and
3:31:48resistance
3:31:49because he knows all the retail traders
3:31:51draw the lines on this
3:31:56so right now here's the pattern right
3:31:58think for a minute i drew this for you i
3:32:00showed you this
3:32:01i push down i show you this i push down
3:32:04and show you this
3:32:05right this crap right here
3:32:09ensures that some retail guy is going to
3:32:11draw a line through it
3:32:13and say that's support from february
3:32:16or august 2nd oh 11
3:32:19and that should hold sometime in the
3:32:21future
3:32:28he creates those zones
3:32:31to make you draw the lines
3:32:35hey joe nice to see you uh i'll get to
3:32:37you
3:32:38i miss your coffee buddy
3:32:43thanks for the nice email yesterday by
3:32:45the way to us and compass
3:32:51okay now to sum this up a little bit
3:32:55level one and level three aggressive
3:32:58moves will be seen
3:33:02market makers must book a profit
3:33:05and do so at level one and three
3:33:10level one
3:33:13can be previous level three three levels
3:33:16of rise they go into stop hunt hit stops
3:33:18high drop
3:33:19that's your level one your new peak
3:33:20formation
3:33:22level three becomes the reversal and
3:33:25starts level one
3:33:26i know it's confusing but think for a
3:33:27minute
3:33:29if i have a trade that goes down three
3:33:31levels
3:33:33one two three hit the stops one more
3:33:37time and rise
3:33:38this becomes the new the new direction
3:33:40right
3:33:41level three has now become level one two
3:33:44and three understand
3:33:49if they're going to continue
3:33:54if they're going to continue the
3:33:56reversal
3:33:57or they're going to continue the uptrend
3:33:58after they make the retracement
3:34:00this becomes the reset you start the
3:34:02count over
3:34:03we'll talk about this stuff i just want
3:34:04to expose you to it okay
3:34:06let me flick the chart and get rid of my
3:34:09drawing and come back
3:34:11okay so now something kind of
3:34:14interesting
3:34:16the head and shoulders pattern develops
3:34:19in level three
3:34:21most often
3:34:24think about what the head and shoulders
3:34:25pattern is hit the high
3:34:27pull back hit the stops pull back
3:34:30hit the stops one more time sorry about
3:34:32your luck just kidding
3:34:33shoulder head shoulder
3:34:37the difference is between us and
3:34:39everybody else in the retail world
3:34:41they want you to take that pattern at
3:34:42the neckline
3:34:45it's over at the neckline i want you to
3:34:48learn to grab it here
3:34:50or here
3:34:56okay i'm gonna talk about it more don't
3:34:58worry
3:35:02here's what i mean three levels of drop
3:35:05going into the next day
3:35:08right here's the m formation nice drop
3:35:15consolidation false support and
3:35:17resistance on the chart
3:35:20false support and resistance on the
3:35:21chart this lines up with some crap
3:35:23you'll project down here
3:35:24when you feel good
3:35:27they come in spike the low asian session
3:35:31shoulder they pull back aggressively
3:35:34they come in
3:35:35spike past the low to pick up the
3:35:38pendings
3:35:40break out guys snatch the market away
3:35:42from you hit the stops of anybody that
3:35:44was correct in this aggregate
3:35:47anybody that didn't move to break even
3:35:49anybody that went to break even gets
3:35:50scratched out
3:35:52on the second pass either one of these
3:35:55is an acceptable shoulder
3:35:56here or here okay railroad tracks going
3:35:59into the session
3:36:02but isn't the head and shoulder pattern
3:36:05let me toggle this
3:36:09isn't the head and shoulder pattern a
3:36:11variation on a w
3:36:15ends on an m think forget about it
3:36:18amputate this guy's shoulder we don't
3:36:20need it get rid of it
3:36:22there's your spike to the low second
3:36:24pass w formation take
3:36:26you're in right here bam the third try
3:36:29coming back
3:36:32doesn't take out either one of these
3:36:33levels
3:36:35trade is still good okay
3:36:39so this behavior
3:36:43exhibits level three
3:36:47do not enter the trade after the dang
3:36:49neckline's broken you're missing the
3:36:50whole thing
3:36:51the move is in here or in here
3:36:57okay again there you go
3:37:02level three behavior why because what
3:37:04they do is
3:37:07they're showing you a downtrend right
3:37:08averages are separated the 50s past the
3:37:10200
3:37:11water is below the mayonnaise the 50
3:37:14emas trading below
3:37:16the jar mayonnaise the mayonnaise white
3:37:18okay now
3:37:19that's a retail traders downtrend what
3:37:22do you do as a retail trader
3:37:24buy the rallies buy the rallies
3:37:28i'm sorry sell the rallies in the
3:37:29downtrend sell here
3:37:31sell here right but what's really
3:37:35happened is
3:37:37they've made the aggressive move towards
3:37:38level three issued a hammer
3:37:40formed the low come back spiked to that
3:37:43low but don't take it out
3:37:44there's your proper entry on the head
3:37:46and shoulders and there's your straight
3:37:48run up
3:37:49do not
3:37:53go against the market maker setup trade
3:37:55in line with him
3:37:57okay you can trade both ways on level
3:37:59three but that's more advanced i'll talk
3:38:00about it later
3:38:01i want you just to get the basic
3:38:03concepts right now the bias should be
3:38:04changed from a downtrend
3:38:06after three levels of drop head and
3:38:08shoulders is seen
3:38:09but look just think about what this is
3:38:11draw this box right here
3:38:12took it out for you to see it hold on
3:38:15let me start over
3:38:18draw the box right here okay at the
3:38:21session open they pick up the breakout
3:38:23guys
3:38:24spike them out long spike them low short
3:38:28break plus a close you enter here short
3:38:30gotcha just kidding
3:38:31our group enters here
3:38:34okay and in three bars you're up big
3:38:37because this is usually a 50 pip channel
3:38:4050 pip tokyo channel right they already
3:38:43one bar
3:38:43is shifted off the low 50. this next bar
3:38:46is about 50 right here
3:38:48then they chop around a little bit hit
3:38:49it again 50.
3:38:51there's your adr
3:38:54you understand okay
3:38:59never trade against the peak formation
3:39:02out of level one consolidation
3:39:05that's the day the breakout traders are
3:39:07rewarded
3:39:10the straightaway develops here most
3:39:13often
3:39:17market makers have gotten what they need
3:39:19at the head and shoulders
3:39:20the aggressive moves and the traitors
3:39:23are jammed
3:39:23going into tomorrow trapped
3:39:27they will not come back to the level
3:39:31because if they do it releases all that
3:39:33money back into their accounts of the
3:39:35traders
3:39:36understand
3:39:40by repeating back towards the level
3:39:45they allow the traders to click out at
3:39:48plus one plus five minus two minus three
3:39:50that's not what they're not in the
3:39:51business of letting people out they're
3:39:53in the business of jamming people
3:39:57so understanding that
3:40:01keeps you in the right directional bias
3:40:03wvvm
3:40:05maaw
3:40:10okay my throat's starting to hurt don't
3:40:12confuse the three swipes at the stop
3:40:14loss the vector
3:40:15three candles don't confuse the three
3:40:17pushes or pulses to the stop loss levels
3:40:20with the three levels of rise or
3:40:22correction
3:40:24some people i understand the three
3:40:26levels of
3:40:27or three swipes at the stops are like
3:40:29this they're tight and they're bursts
3:40:31and i'm going to cover that
3:40:32tomorrow but then you have the three
3:40:34levels of move
3:40:36of approximately 50 pips each depending
3:40:38on the pair australians like 35 pips
3:40:41each
3:40:44okay
3:40:48whitney you know this stuff i don't
3:40:49understand what you're asking me
3:40:54okay now we're going to end on this next
3:40:56couple of slides once you understand how
3:40:58the market is structured
3:41:00there's only four trades that you should
3:41:02be looking for
3:41:04these trades are ninety percent accurate
3:41:07and will not fail
3:41:09i know publicly i can't say that because
3:41:12people think i'm absolutely insane
3:41:16but i promise you when you delve into
3:41:17the forum and start looking around at
3:41:19the family
3:41:20you're going to see carr kim granny
3:41:23scott allen black rick
3:41:26their numbers are sick dave mccoy now
3:41:30zen and diane seven out of eight for the
3:41:33week
3:41:34five out of five four out of five for
3:41:36the week with a net profit of 10 grand
3:41:40this numbers are unheard of in this
3:41:42business
3:41:44because people are following the basic
3:41:46retail technicals
3:41:47and they're scared when i say that
3:41:49they think i'm crazy well
3:41:56i'm not crazy i revealed it today
3:42:00okay so now mastering the handful of
3:42:04setups that i'm going to teach you in
3:42:05here
3:42:07will ensure your success rate tommy just
3:42:10posted he was 87.5 percent for his first
3:42:13week
3:42:13fantastic
3:42:17these setups are going to ensure your
3:42:19success and produce
3:42:21returns and win win rates that are
3:42:23unprecedented
3:42:24in this crazy business i promise you
3:42:26that
3:42:35okay here's the trades stop hunt high m
3:42:39formation
3:42:40stop hunt low w formation straight away
3:42:42rise straightaway drop the cycle
3:42:44that's it
3:42:50too simple right you need something like
3:42:53dots on there and you need some bbs
3:42:55macd's what the hell is too easy
3:43:00if you take all the crap off your chart
3:43:03that i put on there for you by the way
3:43:08and just look at the price action what
3:43:10they're doing you're going to start to
3:43:12see the drawings
3:43:13that i've drawn for you i talked about
3:43:15that stupid picture that was out i don't
3:43:17know i think i was in my 20s a long time
3:43:18ago
3:43:19you know it was like flying saucers and
3:43:21dinosaurs and there's a bunch of dots
3:43:23and you stare at it you can't see
3:43:25you're like that was that stupid dot
3:43:26painting somebody made
3:43:29something happens after you blink
3:43:30looking at it for a few minutes you
3:43:32blink
3:43:32and all of a sudden the picture opens up
3:43:35and you can see
3:43:37flying saucers dinosaurs orange cows
3:43:39green stars blue clovers i don't know
3:43:40what the hell is in those pictures i
3:43:42never could do that by the way
3:43:44that's how i want you to look at the
3:43:45chart now i want you to look at a chart
3:43:47with a different eye a different set of
3:43:49beliefs
3:43:50and understandings and i want you to
3:43:52blink
3:43:53and all of a sudden you see the m's the
3:43:55w's
3:43:57the flying saucer market makers the
3:44:00dinosaurs eating your stops
3:44:02understand when you look at it with what
3:44:04i'm showing you
3:44:06and it clicks it's game over for you in
3:44:08your trading business
3:44:10you own it
3:44:14i don't know how long it's going to take
3:44:15you to look inside the 3d yard for it to
3:44:17change everyone's different
3:44:19i still can't see 3d art
3:44:23i don't want that to happen to you
3:44:26i want you to be the starfish that i
3:44:28threw back
3:44:31i want you to be to be the person
3:44:35that gets this and has success in your
3:44:37life you all deserve it
3:44:41okay it's 10 43 i'm going to end here
3:44:44it's a good spot i'm sorry if you're
3:44:46tired i went a little longer than i like
3:44:47to go i usually try to break around 10
3:44:4830.
3:44:49homework for tomorrow my friends you
3:44:51didn't want to hear it but here it is
3:44:55i want you to go back
3:44:58and i want you to mark the charts i want
3:45:00you to do euro usd
3:45:03and gbp usd
3:45:06and i want you to write on the chart
3:45:09everything i taught you today
3:45:11you knew guys i mean new guys do it old
3:45:13guys don't do it because it's gonna i'm
3:45:14gonna be slammed
3:45:16i will look at all the emails tonight or
3:45:18tomorrow before class
3:45:21let me get a little white piece of paper
3:45:22over here let's see
3:45:24uh let's see white screen screen white
3:45:28okay
3:45:28here we go i need my pen
3:45:33euro
3:45:36usd
3:45:39gvp
3:45:43usd go back as far as you want i don't
3:45:45care go back a month go back two months
3:45:47whatever
3:45:48okay now i want you to label
3:45:52everything that i talked about on the
3:45:54chart
3:45:55i don't know if i spell that right all
3:45:58right let me review for you because
3:45:59you're probably like what the hell did
3:46:00you talk about i'm confused
3:46:04all right i want you to label i'm going
3:46:07to make a little list
3:46:09vector candles three swipes at the
3:46:11higher low
3:46:14w's m's
3:46:17three levels of rise
3:46:21three levels of fall i want you to label
3:46:24end the day and consolidation
3:46:25i basically want you to find this on
3:46:27every chart as you can
3:46:29one two three to the high pull back hit
3:46:32it again
3:46:33one two 3 w reverse and the day
3:46:37i want you to label this i want you to
3:46:39note the pins
3:46:40the timings the hammers orange hearts
3:46:43blue stars i want you to label
3:46:44everything i talked about for the last
3:46:46four hours
3:46:49okay remember my email address it's in
3:46:52the beginning of the slide steve
3:46:53mmm forex.com
3:46:57i'm gonna take i'm gonna go through as
3:46:59many as i can it's gonna be a lot but
3:47:00i'm gonna get through them i always do i
3:47:02promise
3:47:03and i'm going to take some of two or
3:47:04three of the outstanding ones
3:47:08and i'm going to post them tomorrow for
3:47:10our review we'll talk about at the
3:47:11opening of the session
3:47:16okay
3:47:18any questions pertaining to today's
3:47:20information and homework
3:47:22that i can help with right now
3:47:27zen and kim have been answering and
3:47:28typing in there helping out with the
3:47:29questions that's fine
3:47:32nice to see you lou can i type my email
3:47:36address i can't type it because it won't
3:47:37type on the screen but i can try to
3:47:38write it let's see
3:47:39it's my name steve let me toggle this
3:47:42and clean it up
3:47:43start over
3:47:46all right it won't toggle all right
3:47:48s t
3:47:50e v so you should have wrote that down i
3:47:53told you to take notes
3:47:54steve at m
3:47:58m f-o-r-e-x
3:48:05dot com i have another email address
3:48:08come and i'm just too lazy to set it up
3:48:09on my outlook sorry
3:48:13take a snapshot use jing use screen
3:48:15capture tool
3:48:18lou don't do it man don't send me any
3:48:20charge buddy
3:48:24okay look all the new guys new guys only
3:48:28take a screenshot of your chart
3:48:31mark it up use paint take a screenshot
3:48:34of the chart use paint mark it up
3:48:38vector candles breakouts of the box stop
3:48:41hunt low
3:48:42hey lauren how you doing stop on low
3:48:45stop on high
3:48:46three level drop reverse pins mini
3:48:49consolidation zones within the range
3:48:52within the end of each drop all the
3:48:54stuff i just talked about let's see if
3:48:55you learned anything or you sat here
3:48:57like a vegetable for four hours
3:48:59five hours sorry
3:49:03okay
3:49:07kelly thank you lou thanks your ball
3:49:09buster
3:49:1215-minute chart yes whitney everett
3:49:14thank you
3:49:19thank you vadem glad you're here
3:49:23ed thanks nice to see you buddy thanks
3:49:25david nice swing trade in there buddy
3:49:27i've seen him in the forum great
3:49:31thank you guys this is good stuff man i
3:49:34i love teaching as much as i hope
3:49:36you love learning it's awesome peter how
3:49:38you doing
3:49:41bruno tony t from florida hope you're
3:49:44doing okay
3:49:45subio nice to see you buddy quit smoking
3:49:47man i'm gonna quit diet coke you quit
3:49:50smoking
3:49:57joe nice to see you buddy
3:50:00i'm out of chocolate and i'm running low
3:50:02on coffee
3:50:08thanks guys thank you john thanks
3:50:10everybody all right listen i'm gonna end
3:50:11it here have a great night
3:50:13i'll rest my voice i promise i'll be
3:50:15just as jacked up tomorrow
3:50:17leah nice to see you alan
3:50:25i'll see everybody tomorrow listen get
3:50:27some rest
3:50:28don't trade live money unless you're a
3:50:30stubio he's the only one allowed
3:50:32seriously new guys don't trade live
3:50:34money if you're up and you want to look
3:50:35at the market
3:50:36open a chart take all the off of
3:50:38there
3:50:39and watch just watch them work open your
3:50:42mind and watch them work
3:50:43don't put any money on the line because
3:50:45it'll mess up your mentality
3:50:47just watch them work okay i know you
3:50:50guys are going to do it you don't listen
3:50:52so anyway goodnight goodnight to nike
3:50:54night
3:50:56kim nice to see you thank you
3:51:08okay goodnight

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