Chop destroys impatient traders. Wait for aggression and then wait for acceptance. #fundedtrader — Transcript

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1. 0:00Now, most traders get chopped up right
2. 0:01here because they mistake every breakout
3. 0:03attempt for a real breakout. So, how do
4. 0:05you know, using order flow, when the
5. 0:07market is actually breaking out of chop?
6. 0:09Look at NQ right here. We're already in
7. 0:11a bullish higher time frame structure.
8. 0:13Price pulls back, but fails to make a
9. 0:15lower low. That tells us that buyers
10. 0:17still have structural control. So, what
11. 0:19happens at New York open? Well, at New
12. 0:21York open on this day, price begins to
13. 0:23chop. And this right here is probably
14. 0:25where a lot of traders actually ended up
15. 0:27losing money. Why? Because they keep
16. 0:29trading every move to the edge of the
17. 0:31range like it's a breakout. Now, look at
18. 0:33this. Buyers get aggressive at the top
19. 0:35of the range. Price moves up initially,
20. 0:37but gets rejected back into the chop. No
21. 0:39acceptance. Then sellers get aggressive
22. 0:42at the lows. Price moves down initially,
23. 0:44again, no acceptance. That tells me that
24. 0:47we're balanced. We're compressing in
25. 0:48this area. Both sides, buyers and
26. 0:51sellers, are trying to break this range,
27. 0:53and neither side is currently being
28. 0:55successful in their attempts. Then price
29. 0:57pushes back into the highs, and right
30. 1:00here is where things change. Buyers step
31. 1:02in aggressively again, but this time
32. 1:04price doesn't rotate back into the
33. 1:06range. We hold above the prior range
34. 1:08highs. We are now accepting higher
35. 1:09prices, and we continue expanding. That
36. 1:12right there, that acceptance of price
37. 1:15outside of the prior range highs with
38. 1:16buying aggression, is the confirmation
39. 1:19that the breakout is real. Aggression
40. 1:21can start a move, but acceptance tells
41. 1:23you whether that move is actually real.
42. 1:24And this breakout zone becomes important
43. 1:27later in the session. If price pulls
44. 1:29back into this area later, I want to see
45. 1:31buyers defend it for a continuation
46. 1:33higher. And that's exactly what we get
47. 1:35right here. When we identify chop, we're
48. 1:38not trying to predict the breakout of a
49. 1:39chop. You're honestly going to lose a
50. 1:41lot of money doing that. We're waiting
51. 1:42to see which side gets aggression with
52. 1:45acceptance. So, we wait for the
53. 1:46aggression, then we wait to see if price
54. 1:48accepts.