YT YouTube2Text

YouTube2Text → Transcripts → How to Read Market Structure | Trading Course 002

How to Read Market Structure | Trading Course 002 — Transcript

by SCI · 11,471 words · 1,952 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00All right, chat. Another day in the
0:01office. This is day two of pretty much
0:04teaching you how I day trade.
0:06Um like I said, pretty much doing the
0:08series again since I did one last year.
0:11So, pretty much doing a new one for
0:122026.
0:14And today we're talking a bit about um
0:18indications and corrections put together
0:20because everything needs to flow
0:21together. So, you have to understand
0:23them. So, indication, correction, and
0:25then correction continuation, which will
0:27be tomorrow. But, thank you guys cuz you
0:30were literally loving the first video.
0:33And the more love, the more I'll be
0:35wanting to put out these videos for you
0:36guys. I'm not going to lie cuz I really
0:39don't have to. But, you can go pay for
0:41somebody else's $5,000 No, I'm joking.
0:44I'm joking. But, don't pay for any
0:45courses cuz all the information you need
0:47is right here. So, with that being said,
0:50I am pretty much going to get into
0:53everything. I do want to say a couple of
0:55things before I start. Um before we even
0:58start this whole thing. I do want to say
1:00that
1:02I love you.
1:03Uh whoever you are behind the camera. Uh
1:06or you know, like on the other side of
1:08the camera. So, whoever you are looking
1:10at this video and me looking at you look
1:12at this video.
1:14Anyways, I love you guys. And the reason
1:15why I love you guys is because
1:17um where I came from, uh a lot of people
1:20understand that I didn't come from a
1:23lot. If you want to check out my story,
1:25uh I think it was I think it's titled
1:28like homeless at 16. So, if you want to
1:29check out my story, go check that out.
1:31But,
1:32as a day trader, you're pretty much on
1:35your own a lot. And
1:40it's really hard cuz everybody's like
1:42strong egos in the trading space. So,
1:44everybody's trying to be better than the
1:45other person. Everybody wants to be the
1:47best of the best. And nobody wants to
1:49share game, share wisdom. So, me as an
1:52individual, I don't think that's right.
1:54I don't even think that's right inside
1:56of society cuz society is the literally
1:58the same way. Society will literally
2:00have you
2:02thinking that you need to be the best of
2:03the best or they they have you thinking
2:06that you need to do X, Y, and Z. You
2:08need to be a football player, an
2:09actress, you need to be a
2:10multi-billionaire, which is not the
2:12case. But, I do think that everybody in
2:15the world should have some freedom, most
2:18freedom, the max freedom they can get
2:20out of their lives to be able to do
2:22whatever their minds can can really
2:25think of. Like, you should be able to
2:27live however you want to live, do
2:29whatever you want to do without people
2:31judging you, and without people saying
2:34that
2:35uh
2:37you shouldn't be here or you should be
2:38here, right? You should have 100%
2:41control over your whole life,
2:43no matter what. So, number one, love you
2:46guys cuz you guys literally help
2:49that happen for other people. Like, when
2:51you like a video, when you comment, or
2:53when you subscribe to the video, and I'm
2:55not peer pressuring you to do that, but
2:57when you do that, other people then see
2:59it, which then changes their lives
3:01in the long run. So, it's like low-key
3:03like helping everybody.
3:05You're helping me grow because I do
3:07events for free pretty much around the
3:08world. I just got done with a tour a
3:10couple of months ago. We went to most of
3:12all the main cities in the United
3:14States. We traveled in Europe, and now
3:17we're going to Africa in the month of
3:19October, and more and more and more.
3:22So, it's like doing those things, I
3:24wouldn't be able to do it if it wasn't
3:25for people growing ICC into what it is
3:28today. So, for one, thank you guys. For
3:30two, the new people that are here,
3:33um I pretty much teach uh
3:36I guess you could say I teach more of
3:38like I wouldn't even say beginner, but I
3:40would just say I teach uh the
3:42foundations of trading, uh market
3:44structure, and price action. I don't day
3:46trade or scalp anymore, which I'mma
3:49explain why I don't do that in the
3:51video, but I don't do that anymore.
3:54Um Um
3:55And it's not even a money thing, either.
3:57I just figured out that scalping and day
4:00trading's probability of success is way
4:03lower than swing trading. So,
4:05swing trading is way better. But,
4:08I want you guys to know that I am
4:10[clears throat] not a
4:12a nice teacher. I'm not going to lie.
4:14I'm not a nice teacher because I feel
4:16like
4:18You know what? It doesn't matter, man.
4:20Enjoy the video.
4:22Love you guys so much. And from the
4:24bottom of my heart, don't buy a course.
4:26Don't listen to these internet gurus
4:29that want you to pay for X, Y, and Z.
4:32All the information is free online. And
4:34let's help my fellow brothers and
4:36sisters succeed in life and become the
4:39best version of them.
4:41All right.
4:42So, in today's video, we're going to
4:43break down
4:45pretty much the indication and
4:47correction together. I think we're just
4:49going to put everything together instead
4:50of me going over one. I'm going to show
4:52you how both of them are together and
4:54what to look for. I'm going to also do a
4:57little bit of how to know when the
4:59correction is over. That is a big
5:01question that a lot of people ask is how
5:04do you know that the correction is over?
5:07How do you know when the correction is
5:08going to be over? Which that question I
5:11can easily answer now. You're never
5:13going to know when the correction is
5:14over until the price starts to move and
5:17reverse.
5:18Um a few things I do want to clarify
5:20before we even get into this whole
5:21series is
5:23I, as a teacher, am not
5:26the nicest.
5:28Um
5:29Only and it's not because I'm trying to
5:30be a It's just I feel like
5:33some things are common sense. So, got to
5:36bear with me on some things. I'm not
5:37trying to do it to hurt anybody's
5:39feelings and it's not an ego. It's just
5:41I'd be like so frustrated in myself
5:44sometimes that I see that my society or
5:47my community is not understanding
5:49something that's right in front of their
5:50face.
5:51So, it's not because I'm mad at anybody
5:54or an ego thing. It's really normally
5:56just because I'm like, "Wow, society has
5:59got to this point where people are so
6:01blind."
6:02So,
6:03uh
6:04got that.
6:05Uh second thing that I do want to say is
6:07I am a
6:10person that likes to teach beginners,
6:13but I also teach people that have a
6:15complex strategy now that wants to turn
6:18something simple or turn their complex
6:20strategy into something simple because
6:23you got to remember like nobody wants to
6:25stress every single day trying to trade.
6:29And it's just that's not ideal. Like you
6:31don't want to be still trading every
6:33single day when you're
6:3640 years old, 50 years old.
6:38Um
6:39another thing, I'm kind of laying down
6:41all my rules right now cuz you probably
6:44watched video one, now you're watching
6:46video two, and I'm just going to tell
6:48you before we get to video 50
6:50that um when it comes to everything that
6:53I do teach, I don't teach any of the
6:55basic things like what is a pip, what is
6:58Forex. I don't trade Forex, I trade
7:01CFDs.
7:02Uh two completely different things. Uh
7:04commodities, two different completely
7:06things.
7:08Um I don't teach what is Forex, what is
7:11a
7:13what is the Forex symbol stand for and
7:15like what's the base and what's the
7:17quote, what's the margins and I don't
7:19teach that. Those things you can learn
7:21off of Google and Chat GPT.
7:24Uh super simple to to learn that. I
7:26personally just Googled it, boom, found
7:29out in within seconds. So, I don't teach
7:32that.
7:33Uh I only teach price action and market
7:35structure. So, I teach you how to read a
7:37chart,
7:38how to get into a trade, and how to exit
7:42a trade. That's all I teach. How to get
7:44in,
7:44how to how to maintain your psychology
7:47within and without, and then how to
7:50exit. That's all I teach. So, with that
7:53being said, let's get into today's
7:56lesson.
7:58Uh also, one last thing, sorry. One last
8:00thing.
8:01I don't day trade anymore. Now,
8:06>> [snorts]
8:06>> people always ask me how come I don't
8:09trade on the lower time frames. There's
8:11Okay, so I want to put it this way. I
8:13didn't become a swing trader just
8:15because I started making more money. I
8:17became a swing trader because I started
8:19to see how bigger of a probability it
8:23was compared to day trading and
8:25scalping.
8:26So, I will not teach scalping or day
8:29trading because I know the probabilities
8:32of success is way lower.
8:35Like, why would I teach something that I
8:37know only a percentage of people are
8:39really going to understand?
8:41Swing trading has a high probability of
8:44you winning long term than scalping and
8:48day trading.
8:49I teach people to succeed. I don't teach
8:51people to possibly succeed.
8:54So, with that being said, I don't teach
8:56any day trading. I don't teach any
8:58scalping. I don't teach on the lower
9:00time frames because the probability of
9:03that coming out in your favor is way
9:06smaller than trading on the higher time
9:08frame. I see a lot of people they want
9:10to know the lower time frames.
9:12Um
9:13And it's just like I don't do that. So,
9:16you can find someone that does go over
9:18the lower time frames. You could
9:20possibly use the same thing that I'm
9:22teaching on the lower time frames, but
9:24remember what we talked about yesterday
9:26when price is the higher the higher the
9:29time frame,
9:35the higher the time frame,
9:37more respect.
9:39Right? I don't want to trade where I'm
9:42not respected. I don't want to trade
9:44where the trend is not respected. Right?
9:46You don't want to go somewhere where
9:48you're not respected. So, why try it?
9:51Right? Also, another thing that I want
9:53to clarify is trading
9:56is
9:57not
10:00a
10:02small money
10:05game. It's not a small money game.
10:07I, personally, lost a lot of money
10:10before trying to trade $100 accounts,
10:13trying to trade $500 accounts.
10:16And the reason why I'm saying this is
10:18because I always tell people that you
10:20want to be able to risk right around 5
10:23to even 10%. A lot of people think
10:25that's crazy, but if you do the numbers,
10:27it all makes sense to me.
10:29Everything that I teach is what made
10:31sense to me, and I'm just giving it to
10:33you to see if you would use it.
10:35Right? So, if I even had a $1,000,
10:41right? And I risk
10:43I risk 10% each trade. Right?
10:47With a 1:3
10:50risk to reward
10:52on the higher time frame, so this
10:54probability is super high. So, if I did
10:56that,
10:59even if I lost one trade, it would take
11:00me to $900.
11:03The next trade, let's say I win. That's
11:05300 back in profit.
11:07So, [snorts] then I'm at $1,200.
11:10Right? Let's say I win again.
11:13That's 300,
11:15which would take me to 1,500. Let's say
11:18I lose the next trade. Lose 100. I'm
11:21down to
11:22one
11:231,400.
11:25But, when I win again, I'm back at
11:271,700.
11:29The only way you can blow your account
11:31is if you lose 10 trades cuz 10% of
11:351,000 is 100. So, that means you lose
11:37100 10 times in a row.
11:40Right? You could even lose
11:45two trades back-to-back. Boom.
11:47Two trades back-to-back and still come
11:49out on top when you get that next trade.
11:54Right? Now, this all looks easy as I
11:56type it,
11:58but this is what discipline is.
12:01Because think about it. If you succeed,
12:05let's say if you take one trade a week,
12:064 weeks, and you get 300 time or 300 *
12:104,
12:12you come out with
12:14$1,200 in profit. So, that means you're
12:17at 2,200 on the first month.
12:20Second month, let's say if you up the
12:22risk to 200.
12:24Right?
12:25Let's say up it to 200 per trade.
12:29So, since now you have 200 per trade
12:32times
12:34Oops. Sorry.
12:36200, that would be 600. So, yeah, you up
12:39the risk
12:41to 200 risk. That means you're coming
12:43out with 600 profit with the possibility
12:46of four trades going right, which would
12:48be 24.
12:492,400. Right? And that's your second
12:53That's your second month, which will put
12:54you right around
12:5640 4,600.
12:59That's your second month of trading.
13:02You're already at 4,000 in your account
13:04just by easily being patient, taking
13:07your trades once a week. This is all you
13:09need. This is one trade a week. If you
13:11had two, this would be double.
13:14But once a week is all you need because
13:16your main goal
13:17in the beginning as a trader as and I'm
13:20I'm going to say this for anybody and
13:21everybody, your main goal is to make
13:25trading your job.
13:28You got to make it your job full-time in
13:31order for you to progress in your
13:32career.
13:33How can you progress in a career that's
13:35not your career yet?
13:38Right? So, that's like saying
13:40if I if I was a waiter at if I was
13:44applying for McDonald's
13:47before I even worked there, I was
13:49already planning out how I'm going to
13:50own a
13:51be a manager at McDonald's. How is that
13:53possible?
13:55So, first make trading your job and then
13:59try to scale.
14:01Because it's easier to scale when
14:02trading is the only thing you have to
14:04worry about. Right now, you have bills.
14:08You got going to work, so job. You have
14:11to worry about that. You got family to
14:13worry about.
14:15You [snorts] have friends sometimes,
14:18right? You have just life problems.
14:23Right?
14:24But the crazy thing is is everything
14:27that takes up your day
14:29is this right here.
14:31This takes up your day
14:33in order for you to pay this.
14:36Right?
14:37And you don't have time for these, which
14:39ends up you don't have time for this or
14:41this, which ends up causing this.
14:44So, when you make this
14:48into a job where you can have more free
14:50time first,
14:52it allows you to take care of this with
14:55no stress.
14:58Which then when since you're not
14:59stressed and you have a lot of free
15:00time, you can deal with these.
15:04So, your first initial thing should be,
15:06"Okay, how much do I make from my job?"
15:09$800 [snorts]
15:10per week.
15:12Say I make $800 per week.
15:15That means I need to get to a point in
15:19my account
15:21where I can risk
15:26Let's say divided by three, you need
15:29right around you need to be able to risk
15:31$250
15:33per trade.
15:38So,
15:39with that being said,
15:41>> [snorts]
15:41>> now you just have to focus on being
15:44consistent.
15:45Because this is the minimum, right? So,
15:48even if you get this 250 Let's just say
15:50300.
15:53Times that one to three, right? That'll
15:55put you at $900.
15:59You'll be hitting $900 every one trade
16:02you take. But, remember there's four
16:05weeks. You get paid four times. Some
16:08people get paid
16:10get paid twice, right? But, let's just
16:12say you get paid every single week $800.
16:15Now you have to focus on being
16:17consistent. So, your goal is to get to
16:20that mark where you get paid, but now
16:22you got to kind of go above it so you
16:24can succeed and and like the long run.
16:27So, let's say
16:28in total you make
16:324,000 a month.
16:364,000 a month.
16:38>> [snorts]
16:38>> That means if there's four weeks,
16:43you have to make $1,000
16:46per week.
16:47If we break that down, that means if you
16:50have a one to three, you need to make
16:52right around 350
16:56risk
16:58with
17:00a one to three
17:04to make
17:05that thousand.
17:08Right? I think it'll be a little bit I
17:10think it's like 350, maybe. But, to make
17:13that thousand. And that's consistently.
17:15So, the probabilities of that is a
17:18little bit slim cuz are you going to hit
17:20every single trade every week? No.
17:23But, you're making more than 800. So,
17:26even if you missed one week,
17:29right? Let's say if you got three of
17:30them right,
17:32that's 3,000
17:34minus that 350 that you hit. So, it'll
17:37be right around What is that? Like
17:41like
17:42something like that.
17:44Something like that. Am I taking
17:45It's something like that. Math is not
17:47mathing right now, but you'll be right
17:48around $3,550.
17:52But,
17:53if you did
17:5680 *
17:574
18:00or not I don't know why I said 80, but
18:02if you did 800 * 4,
18:05you'll be right around 32.
18:08So, technically, you're 500 or you're
18:11right around $300 more than what you
18:13would have had
18:15if you worked the regular job.
18:18If you get what I'm saying, if all this
18:19makes sense. Go back through this part
18:22if you want it to make sense to you or
18:24if you didn't understand it, go back,
18:26listen to it a couple times. But, your
18:28main goal is to see how much your income
18:31is.
18:33Hey, I make X, Y, and Z from my job.
18:37So, [snorts]
18:39you then calculate all the risk, what
18:42you need to do in order to make
18:43something. So, if you make 1,000 in a
18:46week, take that thousand and be like,
18:48"Okay, if I did a one to two." Your
18:51equation should be this.
18:54Job,
18:56you take that,
18:58divide it
18:59by one to one to three. You can really
19:02divide it by three.
19:04So, divide it by three,
19:06and this will give you how much you need
19:08to risk
19:10per trade.
19:12Right? So, if you get paid let's say uh
19:15what's a good number? 900 divided by
19:17three means you have to risk $300 per
19:20trade
19:22in a one-to-three risk-to-reward. And
19:24mind you, the market is going to give
19:26you either less or more of a
19:27one-to-three. Some days you might come
19:29out with a one-to-seven, especially if
19:31you're following the trend like I'm
19:33teaching you, you might get a
19:34one-to-seven.
19:36And that will be great for everybody cuz
19:38then you're making way more money. So,
19:41three times seven, you just made 2,100
19:45in one trade, which is really good.
19:49More than good, right?
19:50>> [snorts]
19:51>> I'm trying to help you not be
19:52desensitized from money. Um I know we
19:55haven't got into the lesson yet, but
19:57these are very important things that I'd
19:59like to go over
20:01um in the beginning because you get into
20:03trading, you see me, I've been doing
20:05this for five years. I literally have
20:08screenshots of when I used to make $100
20:11in a trade and then a thousand, right?
20:14So, you know, I'll post it right here.
20:17But,
20:18I was in this predicament where I had to
20:21be the person doing this like this. But,
20:23in order to grow, I had to do this cuz
20:26it's going to get to a point where
20:28you're then you're going to you're going
20:30to be risking
20:31$600 per trade
20:34with a one-to-three that's going to give
20:36you
20:40Oops, did I do that right? Yeah. You're
20:42going to be making 1,800 in one trade.
20:45That's good. Four times a week,
20:49that's right around
20:52Let me make sure I got the math. I think
20:54it's right around 5,000.
20:56Let me see, make sure I got the Oops,
20:587,000.
21:007,200.
21:02100.
21:04I don't know why I said 70,000, but
21:057,200.
21:07You're making right around 70 7,200
21:11in 1 month.
21:13And you're risking 600 bucks.
21:16But, you got to get to that point. So,
21:17that means
21:19if you Let's say you did good.
21:22Let's say you risk $100 every month.
21:25And you upped it based on your percent
21:28So, if you got four trades,
21:34let's put it like this. Let me make a
21:35rule for you.
21:36Only
21:38up the risk when you are
21:43three out of four.
21:47Right? So, 75%
21:53win rate.
21:55You can even lower this to 70 if you
21:57want, but 75% win
21:59win rate
22:01up your risk
22:05by 100. Right? So, if you do it this
22:09way,
22:114 months in you should be risking $400.
22:155 months in you should be risking $600.
22:176 months in you should be
22:20By the 10th month, you should be risking
22:22$1,000 per trade. Now, I always like to
22:25tell people to as well
22:28is when you are building up
22:34when you are building up,
22:38don't use
22:41the money
22:45you need.
22:47Right? Don't use you Don't use the money
22:48that you need.
22:50So, basically what I mean by this is
22:52when you start trading while you're
22:54working. So, let's say you're working a
22:55job. You get paid 900 bucks. Right? Take
22:59some of that. It could be even $200.
23:01Take some of that
23:04and save every single week.
23:06So, save. That means if you want a good
23:09size account, that means you have to
23:10save
23:11for right around 10 to even 15 weeks.
23:16Now, I know that sounds crazy
23:18and you're like, "Dang, I want this
23:20to happen now." Now, it also depends on
23:22how you're saving, too, cuz 200 is like
23:25even 100 is less, but you could be an
23:27aggressive saver.
23:29Um you could save up to 600 a week. So,
23:32then you can get to
23:34cuz your main goal, I want you to get to
23:36right around where you can have like a
23:38good solid thousand dollars or even two
23:41thousand dollars in your account. That
23:43way you can start risking that 10% with
23:46ease without being worried. Cuz
23:48remember, if you had $2,000
23:52if you had $2,000 and you're risking 10%
23:55your overall or let's say you just risk
23:58a hundred on this
23:59right? Let's say if you risk a hundred
24:01per trade.
24:02As a beginner, let's just start like
24:04that. Instead of saying 10%, do a
24:06hundred per trade with a one to three.
24:09Right? If you're risking a hundred per
24:11trade, you have 20 trades to blow your
24:14account. That means you have to have 20
24:17losses back-to-back in order to blow
24:19your account.
24:21Which the odds of that is very unlikely.
24:24Like you even luck, you have to be lucky
24:27one time for something to succeed.
24:29So, for you to lose 20 trades in a row
24:33would
24:34literally slightly be impossible.
24:37So, with that being said
24:40I want you guys to look at this
24:43and understand once you do it like this,
24:45everything becomes simple. Because the
24:47numbers that you want to achieve, them
24:49$10,000
24:51days, remember?
24:53If you wanted to make
24:5610,000
24:59right? Divide that by three, that's
25:02right around
25:0410,000 divided by one to three
25:08that is 3,000
25:133333
25:153333
25:17I'm joking, but yeah. So, that means you
25:19have to risk $3,000
25:22per trade and to get to that $10,000 a
25:24day.
25:25Are you even mentally stable to risk
25:28$3,000 in one trade knowing you could be
25:31wrong? Are you even mentally ready to
25:34risk
25:36and lose, possibly lose, $3,000 in one
25:40day?
25:42So,
25:44I already know your answer. no,
25:46you're not ready for that. Mentally, no
25:49beginner, no person is ready for that if
25:51they haven't done it already.
25:53So, you have to start small because
25:55those hundreds, you will start to see,
25:57okay, it's a hundred
25:59200. You're going to get more numb to
26:02what you're risking.
26:04You need to get more and more numb. If
26:06you risk all that straight up front, you
26:09might
26:11freaking try to jump off a bridge. If
26:13you risk $3,000 right now, you would
26:15probably be sweating your ass off.
26:19But, as a trader, you cannot be that
26:21way. You have to be numb to it. You have
26:23to be able to control your emotions and
26:25manage them properly.
26:27So, that way is all So, this is the
26:29reason why it's always good to start
26:30like this and think in this mindset
26:33because then everything becomes easy.
26:35It's almost like a a video game in a
26:37sense because
26:39you have the whole missions lay out You
26:42have every mission laid out. My My
26:44overall objective is to get 75% win
26:47rate.
26:49Every time I hit that, every single
26:50month I hit that, I up my risk by $100.
26:54So, that means your main mission every
26:56single month is to make sure that you
26:58are at a 75% win rate or up.
27:01So, that you can risk more to make more.
27:05Because if you have a 75% win rate
27:08and you keep doing that consistently,
27:11the chances of you always coming out
27:13profitable every month are higher.
27:17So,
27:19with this being said,
27:21think about it like this.
27:23Trading is not
27:25a small money game.
27:28It's not.
27:29You have to have a little bit of
27:30capital, $1,000, $2,000. Me personally,
27:33I saved up for a couple of weeks to save
27:36up for $1,000. Mind you, I was a little
27:38bit different. I was 18 years old um
27:42staying with my mom and I had two jobs
27:44that I did 20 hours every single day.
27:46So,
27:48I didn't really like the bills I had
27:50were like $300, $400 cuz we stayed in a
27:52projects.
27:54So, it was basically
27:56my situation, but depending on your
27:58situation would depend on how you need
28:00to save. And you I'm going to tell you
28:02this now, don't
28:04don't do no little like especially for
28:06my guys out there, man. I know I I
28:08really want to see y'all guys win out
28:09there, man. Y'all [snorts] have to
28:11remember
28:14us as men, we got to be strong, bro. So,
28:16you got to be more harsh on yourself.
28:18That's basically what I'm saying. Like
28:19you have to be harsh on yourself when it
28:21comes to things cuz you know like you
28:23have to win. Especially as a man, you
28:25have to win. There's no other There's no
28:27other way. You have to win.
28:30So, you got to suck some up. Like
28:32if you don't eat for 2 3 days, then hey,
28:35that is what it is. Like keep pushing.
28:38If you like
28:39have to walk 2 3 hours to work every
28:41single day, then that's what you got to
28:43do as a man to get to where you want to
28:44be. Cuz remember, every dollar counts in
28:48this this part of your life. Every
28:49dollar counts. So, everything that you
28:51do literally matters. And it's whether
28:54you're going to take the harder route or
28:56the easy route. And most of the time,
28:57the easy route is just playing the safe
28:59game and continuing to work that job
29:01that you're working that you hate.
29:03That's the easy way cuz you got the job,
29:05so it's like you can keep doing that. Or
29:07you can take the hard way, which is
29:09going a couple of days without
29:11eating, taking those extra walks, and
29:14not taking the bus or not taking the
29:15train or saving on gas and
29:18and walking to work or saving saving on
29:20food where you're eating ramen noodles
29:24probably once or twice a day.
29:26It doesn't even matter
29:28um when it comes to what you're eating,
29:30but yeah, like
29:32all those things matter
29:34in terms of
29:36trying to get to where you want to be.
29:38You know you want to save up.
29:40So, you got to be aggressive with it.
29:42Like I personally was hard on myself.
29:44Like
29:45super hard on myself because I
29:47understood that if I wasn't hard on
29:48myself,
29:50the world was just going to like sink me
29:53in with it.
29:54I don't know how to properly explain
29:56that, but like if I just sat back and
29:58let the world do its thing, it would
30:00have took me into a whole different
30:01direction. But the moment that I took
30:03control over my life and made myself
30:06into a soldier, is the more I started to
30:09conquer everything because I'm turning
30:11myself into what most people will not
30:13do.
30:15So.
30:16Um and also, for my ladies, I feel like
30:20you know,
30:23You know what? I'm not even going to say
30:24nothing. For my women out there,
30:27um
30:28you guys got it made. You guys don't
30:30even need to but I understand you want
30:32your own bread and everything, but
30:35in y'all's scenario, most of the time I
30:38would definitely say um hold back on
30:41being a consumer. Women are the most uh
30:45Women consume the most in the world,
30:48actually. Well, I mean, it's only male
30:50or female, but
30:52females consume way more than guys do,
30:55which is why it's most likely easy for a
30:57guy to save up than a girl to save up
30:59because you have TikTok and Instagram
31:02and
31:03Amazon and Sephoras and all these
31:07different things that come out for women
31:09to consume. That's why whenever you go
31:11to a store, the women out is always
31:13bigger than the men's because women
31:15consume more items. So, as a woman, I
31:19would always say to stay frugal for a
31:22bit
31:23so that way you can save up and put
31:25yourself in a better position. It's
31:26always good to to save up and
31:31you know, invest it somewhere that's
31:32important because those investments are
31:34later going to pay you out whatever you
31:36want. It's really like a delayed
31:39gratification thing. You You understand
31:42You have to understand this is for male
31:43and female. You have to understand that
31:46sometimes when you do something
31:50sometimes when you do something, you
31:52have to
31:53you have to say, "Hey, I know right now
31:56is going to be pretty much
32:01it's pretty much going to be something
32:03I'm investing into now, but I'm not
32:05going to see any benefits until a couple
32:08of couple of weeks, maybe a couple of
32:10months. But, it's okay cuz in those
32:12couple of months when it goes by, I can
32:14do whatever I want."
32:16So, you have to think in like that
32:18mindset cuz that's going to take you
32:19further than anything.
32:21I feel like I'm more talking to you guys
32:23than I am showing you the charts, but
32:26I feel like this really matters the
32:27most, so
32:29All right.
32:30Let's get into today's topic. Someone
32:33timestamp this in the comments for me
32:35when I start talking about the charts.
32:37Just timestamp
32:38for the people that want to go straight
32:40into the charts, but I feel like
32:42everybody needs to hear that first part.
32:45Um okay. So, yesterday we talked about
32:48trends and how to identify trends
32:50visually.
32:51Um now it's the indication part and
32:54correction part. Yesterday we talked a
32:55bit about the indication and correction,
32:57but today we're going to go full depth.
32:59So, for me personally, I always like to
33:02mark everything up on either the 4-hour
33:04or daily time frame, depending on which
33:06one looks visually
33:08uh pleasing in a sense. So, right now
33:11you can see how we can easily see the
33:13highs and lows. So, I like to mark
33:15these, but
33:17let me show you what the difference look
33:18like. If we was on the 4-hour time
33:20frame, you kind of see how there's a lot
33:22more going on.
33:24It's a lot more to mark up. I kind of
33:26stay away from this and try to see if I
33:29can get less candles that can still
33:31produce
33:32uh those higher highs and higher lows,
33:34lower lows, lower highs. Does that make
33:36sense?
33:38So, in this case, I can see that there's
33:40only three highs that I need or three
33:43highs that I can use and right around
33:45three lows. That's good. I only need
33:47that much. Right? Three highs. I really
33:50can do it off of one or two highs. So,
33:53three highs.
33:57Three lows.
34:00Right? And this is really an equal low,
34:01so technically one
34:03two two lows and one forming right now,
34:06so almost three. Right?
34:09So,
34:10I like to mark it this way. So, once
34:12again, to show you the difference,
34:14you see how we marked those three three
34:16highs. Look how many other ones we
34:19missed out on the 4-hour time frame.
34:22So, whenever you are marking up your
34:23charts, it's definitely good to keep
34:26this in in in place or keep this in your
34:28mind, but try to find the time frame
34:31where everything is a little bit more
34:33simplified cuz when it's more
34:34simplified, that's probably the true
34:37trend cuz there's not a lot of commotion
34:39going on. So, that's the real cuz humans
34:43are attracted to commotion. Humans are
34:47attracted to what is
34:49the most rowdy, what's the most noisy,
34:53um
34:53what what has the most commotion. When
34:56things have the most commotion, that's
34:58normally what gravitates everybody
35:00towards it because everybody wants to
35:02see what's going on and try to pick
35:04apart what's going on.
35:06The things that move in in in meaningful
35:09silence or things that move pretty much
35:13with calm and ease,
35:15those are the things that are more
35:16stronger.
35:17So, look for the stronger
35:20price action and market structure
35:23instead of the noisy.
35:25So,
35:26once again, look for things that look a
35:28little bit more calm. Look a little more
35:30peaceful.
35:32This,
35:33we're looking at this,
35:34it's a lot going on.
35:36Right? It's a lot going on on this. So,
35:39we really can't decipher what's going
35:41on, especially the 1-hour right now.
35:43Now, this is not saying that I don't
35:44trade on these time frames, but I'm
35:46saying it's a lot for your brain to
35:48process at one time and it's not good to
35:52do this either. Do not do this.
35:54Do not just go to the 1-hour and try to
35:56look at this
35:58because this is all inaccurate because
36:00of what we're already seeing on the
36:021-day.
36:04We're already seeing that this whole
36:06trend is at a lower low now, creating a
36:10lower high.
36:12Most likely.
36:14Um but it's a good day to explain
36:16correction right now. So, let's get into
36:18it.
36:19First and foremost, uh indication is
36:22always going to be coming from a break
36:24of a lower low or a higher high. So, in
36:27this case, we are breaking a lower low,
36:30which means this movement and all I'm
36:34doing right now, for the people that
36:36don't really understand,
36:38all I'm doing
36:40is it is 14:31 right now.
36:4414:31 price is at 4,163.
36:48So, I'm going to drag markers over. You
36:51see how the candle is moving? You see
36:53how this candle's here?
36:55All I'm doing is going to the next one
36:58to the next one
36:59to the next one to the next one to the
37:02next one to the next one
37:03until I see oh, it came up to this level
37:08and stopped here.
37:10And then I'm going down to see where it
37:12came from.
37:13Coming down
37:15and I'm seeing oh, it went from here
37:18and reversed to this direction. I can
37:21visually see that.
37:23So, I mark it.
37:26So, that's all I'm doing when it comes
37:28to finding those highs and lows.
37:31And to be honest, this is all you need,
37:34but I'll explain that in a different
37:36video.
37:37This is all you need right here. This
37:39one high and this one low.
37:41But, yeah.
37:42An indication only comes from breaking a
37:45lower low or a higher high. Right now,
37:48I'm explaining lower low, but it's
37:50pretty much still the same thing with a
37:52higher high. Right? Same thing.
37:56Even [snorts] if I was to turn this
37:57around, it would still be the same
37:59thing. This This is the high.
38:01This high is
38:03higher than this one. So, this makes
38:04this a higher high.
38:10And it's the same thing.
38:11If it helps, I'll
38:13explain that later on with this flip,
38:16but right now, I'm going to flip this
38:17back.
38:20So, LL lower low.
38:23So, since this lower low is made, I
38:26normally go based off the chart um the
38:28candle closes. So, right around this
38:31candle close because to me
38:33um it's similar to like an auction.
38:37Price called out 100. Anybody taking it
38:40for 100? Anybody taking it for 200?
38:43Anybody taking it for three? Somebody
38:44says, "Oh, I'll take it for three."
38:46Anybody taking it for four? Going for
38:48once, going for twice, I have sold for
38:51three. So, it's like price tried to sell
38:54for
38:56uh what was this? It tried to sell for
38:584,236.
39:01Nobody wanted it. So, it went back.
39:04So, to me the logic behind that is why
39:07would I
39:09use a price that nobody wanted before
39:13to show me when somebody's in control?
39:16It makes no sense to me.
39:18So, basically, why would I use this
39:21number down here when nobody wanted to
39:23touch it in the first place?
39:25But, if everybody wanted to touch here
39:27on this number, it makes more sense
39:30because
39:31>> [snorts]
39:32>> the moment that price is under here,
39:34that means
39:35it brings demand. That means now
39:37everybody's on it.
39:40At first, nobody wanted to do it.
39:42Nobody wanted to be down here.
39:44But, now since price is crossing below
39:47that closed candle, people are now
39:49seeking out for that level.
39:52Right? So.
39:54Indications can only come from a break
39:56of a lower low.
39:59I'm going to go ahead and mark this,
40:01take this out, and we're going to big
40:03screen this.
40:05Right?
40:07When this lower low is breaking, an
40:09indication is only telling you one
40:12thing.
40:14An indication is telling you
40:17start
40:19is telling you
40:21enter
40:23here.
40:28Stop here.
40:32That's all it's telling you.
40:34Enter here, stop here.
40:39Enter here, stop here. It's literally
40:41giving you a map.
40:43So, if you don't know what's going on,
40:45it's telling you enter here,
40:48stop here.
40:49So, that's all the indication is doing.
40:52It's guiding you into direction of where
40:55you need to go.
40:56You see that it's selling, so you're
40:58going to enter a sell here, and you're
41:00going to stop your sell here.
41:04Now, what this basically means in a
41:06different term, so a little bit more
41:08advanced,
41:09basically this means
41:11buyers are here,
41:14sellers are up here. They're normally
41:17right here, but buyers are here, buyers
41:20are here.
41:21So, let me go ahead and type this out
41:22for you guys.
41:24Buyers.
41:27Buyers. Remember what we talked about
41:28yesterday?
41:30Lows are buyers, highs are sellers. So,
41:33in this case, buyers are here,
41:36buyers are here.
41:38So, basically what that looks like in
41:40visual,
41:41is price pushes up from this level.
41:45Let's go ahead and make this less.
41:49Price pushes up from this level.
41:55Just do it like that.
41:56Price pushes up from this level.
41:59So, people are more interested in taking
42:03the product at a lower price, which is
42:06here,
42:07than taking it up here.
42:09So, buyers are literally taking that
42:11price here
42:13and bringing it up, driving demand into
42:15the market, and bringing it to here.
42:21to a seller.
42:23Which you you should know this, seller,
42:26cuz it's a high
42:28sellers.
42:31So,
42:32since price is doing this,
42:35we know
42:37if price is breaking
42:41under the level where buyers had demand,
42:44where buyers literally had the urge to
42:47buy,
42:48if price, so this red red bar,
42:52when it's breaking under here, that
42:54means a sellers sellers is the red.
42:58We can even change this to
43:01a different color to help you out.
43:05Right? So, it doesn't look all the same.
43:08Buyers is blue.
43:10Sellers is red.
43:12So, sellers were selling to one point
43:15until buyers came into the market.
43:18Buyers came into the market
43:21and then sellers came back in control.
43:23Buyers shot the fight, but sellers took
43:25too much control.
43:28Buyers tried to kick in cuz that's what
43:30they normally do at this level, but
43:32sellers once again was too strong.
43:35So, that means they wiped out the buyers
43:37that were sitting here.
43:41So, it leaves this red candle coming all
43:44the way down
43:45and boom, it hits a level of buyers.
43:49That's your indication. So, from here
43:52to here, you know sellers have
43:55a lot of control,
43:58a lot of power to push all the way to
44:01this level. But, as soon as they get to
44:03this level,
44:04they ran into an opponent that's way
44:06stronger than them. So, buyers kick back
44:09into the market and this is what we call
44:15a correction.
44:19Right?
44:20A correction is basically when price is
44:24reversing
44:25and this is the most important part
44:28because a lot of people get this part
44:29confused. So, I'm glad I am the one to
44:32help you.
44:34So, from here we understand this is an
44:37indication.
44:39Right? I don't even need to mark that
44:40out. You got that. You should You should
44:42have that.
44:44The correction comes right after the
44:47indication because the indication runs
44:49into a level that it can no longer break
44:52for the time being.
44:54Which in other words
44:58it makes a lower low.
45:01So, like I said yesterday when price
45:04makes a lower low, the probabilities So,
45:07if once again
45:09if LH equals LL
45:13then
45:16LL
45:18equals
45:20you answer that.
45:24In this case
45:26as you can see now price is pushing up.
45:29This is what we will not do.
45:31We will not just stay on this daily time
45:34frame looking for a wick.
45:37Cuz price could wick out however it
45:39wants.
45:41A wick does not mean that price
45:44isn't going to go in that direction.
45:47A wick mean can mean that it's not going
45:50in that direction
45:52but a wick doesn't mean that it won't
45:54try and won't push in that direction.
45:59Take a minute to re-listen to what I
46:01just said.
46:02A wick
46:04is not saying that price is not going in
46:07that direction.
46:08A wick is only telling you it's not
46:10trying to now,
46:12but it still can have the possibilities.
46:14So, in prime example, you see how we're
46:17wicking down?
46:19Let me turn my wicks up for you. I
46:20normally have these turned down.
46:24Remember,
46:25a wick is only price saying it tried to
46:27come there, but it it didn't nobody
46:30wanted it at the time.
46:32That's like saying like crazy analogy,
46:35but
46:37let's say there was like
46:38a ugly girl from high school.
46:41Right? At first, nobody really wanted
46:43it. And then she blew up later on in
46:45life. And now everybody wants it. Like
46:49it wasn't attractive to this this price
46:51wasn't attractive to buyers before. They
46:54didn't really want to buy it right here.
46:57But now since it got lower,
47:00everybody's into it, but there's so much
47:02there's so much selling pressure of
47:04everybody selling it that it sells down
47:06too low.
47:08So, at first, a wick is only saying that
47:11it was attractive, but nobody really
47:13wanted it. It's not saying that price
47:15isn't going to go lower
47:18or higher. So, in this case, we're not
47:20just looking for a little wick to
47:22reject. What we need to do, so that's
47:25what not to do cuz a lot of people said
47:27I need to explain what not to do and
47:30what to do.
47:31So, in this case, when we see
47:34price made a lower low
47:35and it's starting to correct. So, if
47:38we're on a downtrend, that means we only
47:41need to see red candles at the time. The
47:43moment we start seeing a blue candle,
47:46this means that buyers are kicking in.
47:50All right?
47:51And with that being said, all we're
47:52going to do is you're going to see me
47:54come up here.
47:56And you're going to see me click 4-hour.
47:59Now, why did I do that?
48:02Because on a daily timeframe, we got the
48:05information that we needed. We got the
48:07information that price is sitting at a
48:09lower low and is correcting now.
48:12Now, what do we need to do from here?
48:15So, for today, it's not really giving us
48:18the structure that we need, which also
48:20is another reason why you should not
48:23trade. And what do I mean by structure?
48:26Go back to video one and listen to the
48:29four types of structures that I told you
48:31about.
48:35Higher high.
48:40Higher low.
48:47Lower high.
48:51Lower low. Four types of structures. So,
48:55basically, what that means is
48:57from here,
49:00you're going to be looking for this.
49:03We're on the 4-hour timeframe. We
49:05understand that price on the daily
49:10is selling.
49:11So, all we're doing is going to the
49:134-hour
49:15and we're saying, "Hey, price is
49:17correcting."
49:18So, that means buyers are coming back
49:20in.
49:22But,
49:23I know that price on a daily timeframe
49:26is only coming up because it needs to
49:29make a lower high so it can continue the
49:31trend.
49:32So, once again,
49:34if we're on the daily timeframe and we
49:36know price is on a downtrend
49:40and we know it's at a lower low right
49:42now,
49:43if
49:45LH equals LL, then LL equals what?
49:50So, this LL should be making what?
49:54A lower high.
49:57So,
49:58if that is the case,
50:00all we're doing all we need to do and
50:03once you get more advanced, you won't
50:04even need to do this.
50:07But all you're going to do is
50:09come here where we're at currently. So,
50:11right now is 14:44.
50:14I'm just going to take my crosshair
50:16and look at where current price is at.
50:19Boom.
50:20Stay calm with me.
50:21I'm just going to take this and find out
50:24which direction it just came from. So,
50:27blue candles means that it just bought,
50:28so that means it came from a low
50:31position.
50:32So, I'm going to just go lower
50:34because it's buying. So, I'm going to
50:36just go lower to find that level.
50:38And obviously it's marked up.
50:41This is our lowest point.
50:44Since this is our lowest point, where
50:46did this low come from?
50:50Take it up.
50:52That was the highest point.
50:54So,
50:56with this being said,
50:58we now know
51:01this whole area
51:05has sellers all the way up here pushing
51:07price down to here
51:09and buyers pushing price up right now.
51:13So, right now we have a high and we have
51:16a low.
51:18With this being said,
51:23you now know that there's a high and a
51:25low.
51:26In order for price to So, for one in a
51:29correction, you're most likely going to
51:31see
51:32higher highs and higher lows being built
51:36on the correction time frame.
51:38So, let me put this in simple words for
51:40you. If we're using the daily right now,
51:44this could be for anything. So, if we're
51:45using a daily
51:47for this will be our markups.
51:51I'll just do everything so you're not
51:53confused, all right? So,
51:55mark
51:56ups.
51:574-hour
52:04correction time frame. Let's just
52:06explain it this way. Correction time
52:08frame.
52:10This is where you get the details.
52:16This is our correction time frame. Let's
52:18say if we was trading on the 4-hour,
52:21this would be our markups.
52:261-hour
52:30details correction time frame.
52:33Let's just keep it keep it all simple.
52:38Correction [snorts] time frame.
52:43You want to do 1-hour, you can.
52:461-hour
52:48markups
52:5130-minute
52:56correction
52:59Honestly, you would use the 15 to be
53:01honest.
53:06But, yeah, you would literally do it
53:07like that. So, since we're on the daily,
53:11we're looking at our correction time
53:13frame. This correction time frame is
53:15normally supposed to be going up
53:19like this.
53:21Supposed to be building those higher
53:22highs. You want the correction time
53:24frame to be opposite of what you're
53:26thinking, because this is what's going
53:28to help you get into your entry later
53:30on. You want this correction to buy. You
53:33want price to buy. As long as it doesn't
53:36break above here,
53:38your your higher
53:40your high
53:41it's okay.
53:43Everything's okay. It can literally keep
53:45buying up for the next couple of hours.
53:48It can keep going up as long as it
53:50doesn't break here.
53:51Cuz remember,
53:53we're on the 4-hour time frame. It might
53:55look crazy and wild to you, but
53:57everything is moving for a reason.
54:00Look, notice this, right? You see this
54:02big drop, and then it burst it up.
54:05Watch this.
54:06This burst up right here.
54:114-hour time frame. We marked up the
54:13details. Watch this.
54:15Daily time frame.
54:18Tell me what it just made.
54:20Tell me what it is just make on a daily
54:22time frame for us.
54:28High,
54:29low,
54:30lower high, so it can sell down.
54:33So, if the 4-hour is doing something,
54:36don't panic
54:37because it's doing it so it can produce
54:41what we need for our bigger time frame
54:43that we are worried about. So,
54:45basically, once again, what I mean is
54:49always remember your 4-hour correction
54:52time frame your correction time frame,
54:54correction time frame, correction time
54:56frame.
54:58That's not what you base your trade off
55:00of. You don't base your trade That's not
55:01the trend.
55:03That's something to help you get into
55:04the trend. This correction time frame is
55:07basically to show you
55:09when you need to get in.
55:11So, to explain when the correction is
55:14over.
55:16For the people that really want this
55:18one,
55:19right?
55:20So, like I said earlier,
55:22you will not know when
55:25the correction is over. So, I'm not
55:26going to be like, "Oh, the correction is
55:28going to be over in 3 hours." It's
55:30impossible for me to know that.
55:33Impossible. So, get that out of your
55:35head.
55:36Oh, the correction is going to be over
55:38Wednesday.
55:39That's stupid.
55:41Do not think that.
55:43That's stupid. You cannot predict the
55:45market. You can only react to it.
55:48So, it is stupid to say
55:52it's going to end in 2 hours.
55:56You have to visually see it
56:01in order to say, "Okay, the correction
56:03is over."
56:05So, change your way of thinking. It's
56:07not
56:09"Oh, it's going to be over in a couple
56:11hours. Oh, it's going to be over in 2
56:12days."
56:13We don't know that.
56:16"Oh, it just broke."
56:18Oh.
56:19Hold on. One sec.
56:20High.
56:22High or low?
56:23Higher high. Higher low.
56:25Higher high.
56:26Boom. Lower low.
56:27"Oh, it just broke structure. The
56:30correction is most likely over."
56:33That's what you got to get into.
56:36It just broke structure. The correction
56:38is now most likely over because it's
56:40starting to head into a different
56:41direction. Because remember in episode
56:44one, I said,
56:46"If you're in a trend, you're only going
56:47to get two of the structures in a
56:49trend." So, higher high, higher low for
56:52an uptrend and lower low, lower high in
56:55a downtrend. The moment you see one of
56:57them mix is the moment a reversal is
57:00most likely happening.
57:02So, if you was getting
57:04H H
57:07H
57:08So, if you was getting H H H L H H H L
57:12and then you see L L
57:16trend change. Because now it's going to
57:18go from
57:20L H
57:21L L
57:23L H
57:24L L or L L
57:28and then [snorts]
57:29you might even get a time where you get
57:31this.
57:32Equal low. Let's just put that one.
57:34Let's toss that one in for you. You
57:36might get equal low.
57:41And then you get what will most likely
57:43come next cuz if it's a equal low, it's
57:45most likely trying to push higher. Then
57:47you might get higher high.
57:50Right? But once again, you you got a
57:53long time with me. Like if you're
57:54sticking by me on this whole course, you
57:57got a lot to learn. But in this
57:59scenario,
58:03Hey, man.
58:04You cannot predict when this correction
58:06is over. You have to wait till it
58:08happens. So, in this scenario, I can
58:10only tell you price is pushing up, which
58:13is a great thing for us.
58:15Now,
58:17Ooh, excuse me.
58:18Now,
58:20what we're looking for
58:22is for price to either one
58:26make a higher low, which is very
58:29beneficial for us. We We want to see a
58:31higher low.
58:33We want price to push up because then it
58:35makes it easier for us easy for us
58:38to determine when it's over.
58:41Cuz now we're just going to mark the
58:43lows that it make.
58:45Right?
58:46Because
58:47if the correction is happening, the
58:49correction should be the opposite of our
58:51markup time frame.
58:54So, our markup time frame
58:56is always going to be different from the
58:58correction time frame.
59:00When it's time to enter, the correction
59:03time frame will then
59:05match our markup time frame.
59:08When the correction time frame and the
59:10markup time frame match,
59:13that's when your entry is.
59:17So,
59:18with this being said,
59:21indications come from the original
59:23breakout levels of something
59:26of a lower low
59:28or a higher high.
59:30Once that indication is made, it's going
59:32to tell you enter here
59:34and here. That doesn't mean you enter.
59:37I'm just saying that's where most likely
59:39So, if a correction is happening, it's
59:41most likely trying to come back to that
59:43original level that it broke out of
59:45because remember the reason why we don't
59:48trade the first time
59:50I don't advise people to trade the first
59:52time is because when I first started
59:55trading, I was that guy trying to get
59:57into this trade because everybody was
59:59talking about it. So, this one day price
1:00:02was selling off or buying up super
1:00:04crazy. Twitter's talking about it.
1:00:05Instagram's talking about it. Oh, I made
1:00:07this. I made this. So, then you FOMO and
1:00:10then you're trying to get in or if you
1:00:11see a bunch of red candles, you're like,
1:00:13oh, I can make money off of this.
1:00:16Crazy psychology tip.
1:00:21is and you probably already know this,
1:00:23but trading is
1:00:25really institutional institutions
1:00:29I don't know why I can't say that word.
1:00:31Institutions versus retail traders. So,
1:00:34banks versus regular people.
1:00:39People hate hate to look at it that way,
1:00:41but that's what the case is.
1:00:44If I threw
1:00:46$10,000 on the ground in cash
1:00:49in front of 100 people, they would fight
1:00:51for it.
1:00:52They would literally slaughter each
1:00:54other for it.
1:00:56A piece of paper they would slaughter
1:00:58each other for it.
1:01:01So, the bank is literally going to throw
1:01:03something in your face
1:01:05and be like, bite it. Take it.
1:01:09And you
1:01:12you would know
1:01:15no psychological awareness
1:01:18no no no no
1:01:20no strength in your mindset
1:01:23you're going to take it.
1:01:25You're going to try to grab it.
1:01:28And it was all to set you up for
1:01:29failure.
1:01:32Literally all of it was to set you up
1:01:34for failure.
1:01:35So, they want you to bite at something
1:01:37that looks easy.
1:01:39Because the second time when it goes
1:01:41around,
1:01:43it looks easy again, but you have no you
1:01:46have no freedom to even take that take
1:01:48that chance.
1:01:50So, basically [snorts] in in other words
1:01:52is
1:01:54I don't sell this first time because
1:01:58this is showing me is giving me a clue
1:02:01of where price is going to go. It's like
1:02:04it's like if there was two doors
1:02:07and you have three people with you. It's
1:02:09you, your friend, and your other friend.
1:02:11Two friends.
1:02:13There's two doors.
1:02:15One's rose petals and rainbows, and then
1:02:17the other one is hot lava.
1:02:22To In order to know, one of y'all has to
1:02:25try it.
1:02:27Let's just say it was you and somebody
1:02:29else. You and a friend cuz that makes
1:02:30more sense. It was you and a friend.
1:02:35You and a friend
1:02:37seen a door two doors. One's hot lava.
1:02:41One's flowers and rainbows.
1:02:44Somebody has to go through one door in
1:02:46order to figure out which one is which.
1:02:51So, let's say it was you
1:02:54and somebody, let's say the government.
1:02:56Let's just say it like that.
1:02:58The government is going to wait till you
1:03:00pull the door in order to see which
1:03:01one's which.
1:03:03So, basically
1:03:06all the market is doing is saying, "Hey,
1:03:09we're going to go from here and it's
1:03:11going to end us up here."
1:03:13So, it's giving you a clue.
1:03:15It's basically telling you, "Hey, when
1:03:17we open this
1:03:19it's going to lead you it's going to
1:03:20lead you here."
1:03:24But, that doesn't mean you buy it the
1:03:25first time cuz you don't know if it was
1:03:27going to be a good or bad decision.
1:03:30So, basically
1:03:32in other words, if I was to reverse this
1:03:37if I was to see this trade and be like
1:03:41"Oh, It's a red candle going down
1:03:43breakout. Let me get in."
1:03:46Yes. I know you're looking looking at it
1:03:49and be like, "Oh, I could have made
1:03:50money still though."
1:03:52This is the thing.
1:03:54As a beginner trader, some of us don't
1:03:56understand when enough is enough.
1:03:59And the consistency of us knowing that
1:04:02is very is very slight.
1:04:07Especially as somebody that starts
1:04:09trading and then you're making a little
1:04:10bit of money, all this looks good and
1:04:13you're like, "Oh, yeah. This is great.
1:04:14This is great. I'm making a lot of money
1:04:16right now." And then you're aiming for
1:04:18all the way down here, small stop loss,
1:04:21and then price comes down to make you
1:04:23some money.
1:04:25But, you don't know when to stop. So,
1:04:27then price ends up coming to take you
1:04:29out.
1:04:31It's a common thing. People trade
1:04:33breakouts, don't know when to get out,
1:04:35and then later on get stopped out cuz
1:04:36they held too long.
1:04:38But to even avoid all of that cuz some
1:04:41of y'all going to be like "Oh, I just
1:04:43took a little bit and got out."
1:04:45Why do that when you can just do this?
1:04:49See where price is going to go. Let
1:04:51price say, "Hey, we broke out here. We
1:04:53ended the breakout here."
1:04:57It corrects because it's trying to
1:05:00collect all these people that's in that
1:05:02don't understand when to get out. It's
1:05:05going to teach them a lesson. That's why
1:05:08it goes back up to teach them a lesson.
1:05:11I like to explain it in a different way,
1:05:12but
1:05:14we'll explain that tomorrow.
1:05:17This correction is happening
1:05:19to take those people out.
1:05:22All these people right here are selling,
1:05:24selling, selling. People even selling
1:05:26down here. It's taking them all out.
1:05:29Because the moment it does,
1:05:33the moment it takes you out of your
1:05:34trade,
1:05:35and it feels like it collected enough
1:05:39greedy
1:05:41FOMO people,
1:05:42the moment it collected all the greed,
1:05:44all the FOMO,
1:05:48then it corrects
1:05:49and go back down to where it needs to
1:05:51go.
1:05:55That's basically how a correction works.
1:05:59And to know when the correction is over
1:06:00is when price breaks that structure. The
1:06:03whole time you're just marking your lows
1:06:05as it's going up higher and higher.
1:06:09Cuz even if it doesn't go lower, let's
1:06:11just say it just reverses and goes back
1:06:13up from here.
1:06:14You've already kept marking your highs
1:06:16and lows the whole time. So now you can
1:06:18just reverse it. Okay, this is my
1:06:20indication, and this was my low.
1:06:24So as long as this low stays higher than
1:06:27that one, I can get back into this
1:06:29trade.
1:06:30It works in your favor every time. That
1:06:32indication is always going to work in
1:06:34your favor because even if price was
1:06:36just to go all the way back up,
1:06:41just somehow all the way back up,
1:06:44that's just the new indication for you
1:06:46to tell you that price is going on an
1:06:48uptrend, which then you can take
1:06:49advantage of.
1:06:54So,
1:06:55with all this being said,
1:06:57I just want to say that
1:07:02this is not as hard as you you're trying
1:07:04to make it. I'm going to try to my best
1:07:06to make it super simple for everybody.
1:07:11Cuz that is literally what I do.
1:07:14This is easy for me, so I should try to
1:07:16make it easy for everybody else.
1:07:19But, remember
1:07:22a correction is not something you can
1:07:24predict. You have to wait till structure
1:07:26breaks.
1:07:28Now, to give you a little sneak peek of
1:07:29what we're going to talk about tomorrow,
1:07:31this is the correction and continuation.
1:07:34So, you need everything tied together,
1:07:36but I'm explaining it in one. So,
1:07:38indication, correction, and then
1:07:40correction, continuation. This is how
1:07:42I'm going to explain it. But, as you're
1:07:44correcting,
1:07:47price is then going to break structure.
1:07:51That break of structure is on your time
1:07:54frame or your your correction time frame
1:07:57that you need to look for this this
1:07:58whole structure movement right here.
1:08:01Cuz the moment it breaks,
1:08:03this is your entry for price to go back
1:08:06down. Now, you could do this two ways.
1:08:09Most of the time, I just do it off this
1:08:11first break because that means that
1:08:13price is most likely going in that next
1:08:16direction because we're not supposed to
1:08:17see a lower low inside of an uptrend.
1:08:21So, if we're on our correction time
1:08:22frame
1:08:23and price breaks structure, I normally
1:08:25just get in off that. But, to keep it
1:08:28really safe for you, what you can do is
1:08:31let this be the indication, correction,
1:08:33and continuation also on your um
1:08:36correction time frame. So, basically
1:08:39doing ICC on the correction time frame
1:08:41as well, so it can match up with your
1:08:44markup time frame.
1:08:46So, once again, let's go back to the
1:08:484-hour so you can get those notes.
1:08:51You start off with your markup time
1:08:52frame.
1:08:54So, you can mark up either on the daily
1:08:56and use the 4-hour for your corrections.
1:08:59Or you can mark up on the 4-hour and use
1:09:00the 1-hour for your corrections. You can
1:09:03work up on the 1-hour and use the
1:09:0415-minute for your corrections.
1:09:07Right? Cuz once the correction matches
1:09:09back up, cuz the correction should be a
1:09:12different a different trend than the
1:09:14daily.
1:09:16So, it should literally be like this.
1:09:20Daily
1:09:21up.
1:09:23Let's say or daily down, cuz we're going
1:09:26down right now.
1:09:28Correction
1:09:30should be going up.
1:09:33Correction
1:09:36finish
1:09:40should be matching
1:09:43the
1:09:45mark up time frame, but in this case,
1:09:47daily.
1:09:49So, it should rematch with the daily.
1:09:53Not I'm not talking about candle wise,
1:09:55I'm just talking about is it making
1:09:57higher highs or lower lows, lower lows
1:09:59or lower highs?
1:10:00What is it doing? Is that matching? So,
1:10:03if the daily time frame is making lower
1:10:05highs and lower lows, is the correction
1:10:07time frame doing that? And if it is,
1:10:10then everything is most likely setting
1:10:12up for the next move down.
1:10:14Cuz remember that correction is only
1:10:16making a lower high.
1:10:19Now, one thing that I will say is
1:10:21when it comes to trading this way,
1:10:23especially on the higher time frame, a
1:10:25lot of people graduate gravitate more
1:10:27towards the smaller time frame because
1:10:29you can get answers faster.
1:10:32So, basically what that means is if I
1:10:34was a scalper, I could know
1:10:37in the next 5 minutes whether I was
1:10:39wrong or right about price being a lower
1:10:41low or lower high
1:10:42or a higher high or higher low. I can
1:10:45know if my position was right. I might
1:10:48get stopped out, I might win, I might
1:10:49lose.
1:10:51You can know way faster when you're
1:10:53scalping.
1:10:54The only problem with that is your brain
1:10:57doesn't comprehend information that
1:10:59fast, which is why the most over traders
1:11:02and over leveragers come from scalping
1:11:05and day trading. The most revenge
1:11:07traders come from scalping and day
1:11:09trading because their brain doesn't have
1:11:11a lot of time to process every emotion,
1:11:14every feeling, and logical thinking at
1:11:17the same time,
1:11:18which is why
1:11:20whenever you notice if you over
1:11:21leveraged or revenge trade, you didn't
1:11:24really calm down and understand your
1:11:26mistakes until the end of the day. But,
1:11:28in the moment, all you can see is
1:11:30emotions covering your logic.
1:11:34And your logic doesn't kick back in
1:11:36until your brain fully comprehends and
1:11:38process the situation that happened at
1:11:40hand, which is why a lot of things in
1:11:43the world is based off of reactions
1:11:46and emotions.
1:11:48There's been a lot of let's just say
1:11:52let's just say someone
1:11:55I don't know, someone got into a fight
1:11:57with my friend, and my friend told me
1:12:00that he just got into a fight with this
1:12:01guy.
1:12:02Normally, if you're not in control of
1:12:04your emotions,
1:12:06people will then react and act out,
1:12:09which then would lead into things, and
1:12:12then you get in trouble X, Y, and Z, and
1:12:14then you start thinking more logically.
1:12:17Depending on the person to as well. Some
1:12:19people just don't overall think in a lot
1:12:21a logical way. They just think
1:12:22emotionally, which is
1:12:24destruction.
1:12:27So, basically,
1:12:29when your brain doesn't have enough
1:12:31comprehension of what's going on, or if
1:12:33you don't train your brain to have a
1:12:35faster comprehension of what's going on,
1:12:39when things are going so fast, you react
1:12:41out of emotions, which are covered over
1:12:43logic. So,
1:12:44basically, your emotions are trying to
1:12:47seem [snorts] logical.
1:12:50Like you you would think like, oh, I
1:12:51need to get back in this trade because I
1:12:53most likely might win this one because
1:12:55it's doing this. So your brain is trying
1:12:58to use logic but it's really emotions.
1:13:00So it's like logic is covered in
1:13:02disguise or emotions is covered in
1:13:05disguise as logic. It's really a common
1:13:08thing that even women use. So I'm not
1:13:10going to lie. Sorry sorry my ladies but
1:13:13it's a common thing that women use to as
1:13:15well like
1:13:16they know something logically but their
1:13:19emotions is covered over so
1:13:21they emotionally sometimes and men too.
1:13:24I've seen a couple guys do the same
1:13:26thing but
1:13:29um yeah.
1:13:31I personally don't like trading the
1:13:33smaller time frames because it doesn't
1:13:35allow my brain to process things uh fast
1:13:38enough. And once again, I'm pretty smart
1:13:40and I can process a lot of things
1:13:42uh super fast but whenever money is on
1:13:45the line, especially as a beginner or
1:13:47somebody that doesn't have a lot of
1:13:49money uh a lot everything's going to be
1:13:52emotional to you. Everything's going to
1:13:53hurt. Everything is going to you have
1:13:55you feeling some type of way. So yes
1:13:57yes, you're you're going to feel some
1:13:59type of way regardless of the fact in
1:14:01the beginning. Um now, I still get upset
1:14:05too but it's not the same as a beginner
1:14:07would, especially if you're trying to
1:14:09make trading into something that you
1:14:11want.
1:14:12Um I think trading also brings a lot of
1:14:15emotions and because you're coming from
1:14:17zero and you're trying to get to 100.
1:14:22Right? But the only thing that is
1:14:25standing in your way is this thing that
1:14:27we call it time.
1:14:30This is one of the biggest things that
1:14:32scares a lot of people. Even if you're
1:14:34reading the Bible, a lot of people
1:14:38they could do the task at hand but not
1:14:40for a very long time or not with like
1:14:43let's say if I said hey, you're going to
1:14:45make a million dollars but I don't tell
1:14:48you when you're going to make it.
1:14:50Right? That's going to be the constant
1:14:52thing that runs through your mind every
1:14:55second of the day. Like every second of
1:14:58the day is going to run through your
1:15:00mind and you're going to literally think
1:15:02about it all the time.
1:15:04Right?
1:15:07Trading is one of those things where you
1:15:09will never
1:15:11you will never know when it's going to
1:15:14work out for you.
1:15:16You can feel it,
1:15:18but you will never know on what day will
1:15:20everything be successful for you, which
1:15:22is why trading brings out the most
1:15:24emotions in people because they want to
1:15:26do something
1:15:28they want to get to this point, they
1:15:30want to go from here to here.
1:15:32I did that the wrong way, but they want
1:15:34to go from here to here,
1:15:38but they don't know how much time that's
1:15:39going to take,
1:15:41which it then brings out a lot of things
1:15:43such as rushing the process, over
1:15:46trading, over leveraging, trying to get
1:15:48everything in one take.
1:15:51A lot happens from here because
1:15:54a lot of people are trying to make it
1:15:56all work and make it make sense
1:15:58as fast as they can because they don't
1:16:00know how long it's going to be.
1:16:02Um I could talk a lot about psychology,
1:16:05but once again, we're here for trading.
1:16:07Uh psychology I'll do in different
1:16:09videos if you want.
1:16:11But once again, trading is one of those
1:16:13things where you have to remember your
1:16:15emotions are going to be brought out the
1:16:16most and you cannot
1:16:19let that
1:16:20that emotion cover over logic.
1:16:24Logic is one of the things that a lot of
1:16:26people in this world do not use.
1:16:30So,
1:16:32have a blessed day.
1:16:34Love you guys and I'll see you guys
1:16:35tomorrow.

About this transcript

This page contains the full transcript of How to Read Market Structure | Trading Course 002 by SCI, generated from the public captions YouTube serves with the video. The transcript has 11,471 words across 1,952 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.