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How To Start Day Trading In 2026 [Full Tutorial] — Transcript

by TJR · 73,027 words · 10,277 segments · language en · Watch on YouTube

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0:00This is going to be a complete guide on
0:02how to start trading in 2026 as an
0:04absolute beginner. So, if you guys are
0:06brand new to trading or if you guys are
0:07just now getting into trading, this
0:08video is literally going to be every
0:10single thing that you guys need in order
0:11to get on the right track and learn how
0:13to trade from A to Z. If you guys don't
0:15know me, my name is Tyler or people on
0:17the internet, they call me TJR, and I've
0:18been full-time trading for the past
0:20couple years, and it has completely
0:22changed my life. I've also been blessed
0:23with the opportunity to be able to teach
0:25thousands of students for free on the
0:28internet through YouTube videos and then
0:30also teaching direct students through
0:32mentorships to help change their life
0:34with trading as well. In this guide, I'm
0:35going to provide you guys with literally
0:37hours upon hours upon hours of all of
0:41the best information that I have on
0:43trading and compiled it all into one
0:45massive video so that you guys can get
0:47off to the right track. Because I know
0:48personally when I was trying to learn
0:50how to trade, when I was an unprofitable
0:52trader, that I would have literally
0:53killed to have an opportunity like this
0:56to be able to watch this video and to
0:57have myself put on the right track
0:59because I know the younger unprofitable
1:01version of myself, I literally had to
1:03scour on the internet for who knows how
1:05long, bro. It was probably months trying
1:07to search through every single video
1:08required for me to actually get a full
1:11grasp on what trading was and to have
1:12all the tools necessary. So, what I
1:15wanted to do for you guys was to put it
1:17all in one place. So, make sure you guys
1:18stay until the end of the video because
1:20there's a whole lot of information in
1:21here and I wouldn't leave anything out
1:24of this if it wasn't required. So, I'm
1:26going to put every single thing that is
1:28required and leave all of the BS out.
1:30So, right now, we're going to start with
1:32the absolute basics. So, whether you
1:33guys have been trading for the past 3
1:35years or you guys are just now getting
1:37into trading, this is going to bring you
1:39guys up to speed so that we're all on
1:41the same page. So when we actually do
1:43get into all of the other concepts and
1:45when we actually get onto the charts,
1:46you guys aren't freaking out like what's
1:48a candlestick, what's a candlestick wick
1:50or oh my goodness, liquidity sweep, I
1:52have no clue what that is. So for all of
1:54the beginners, this is where you guys
1:55are going to start. This is going to
1:56cover the absolute base fundamentals of
1:59what a candlestick is, what a chart is,
2:01how it moves, and then we're going to
2:03transition into what is trading, what is
2:05liquidity, what are fair value gaps, all
2:07of these things, all these concepts that
2:09you guys have seen everywhere online.
2:11With this first video, the last one that
2:13I filmed that I kind of scrapped, it was
2:15like sappy kind of just saying like, you
2:19know, new year, new you. this is why X
2:23and Y reason why you guys need to be
2:25starting today and you know like this is
2:29how trading changed my life and I hope
2:31that the same thing can happen to you
2:34and it's true I do feel that way but at
2:37the end of the day man like
2:41you you clicked on this video for a
2:43reason you clicked on this video because
2:45you do not enjoy the current life that
2:48you're living and I'm not going to sit
2:51here and [ __ ] you guys and try and
2:55persuade you to watch through this
2:58entire video series. You know, it's just
3:00not it's not my place to do that. I'm
3:03here to give you guys free information,
3:06free value to try and help you guys
3:08change your life. Personally,
3:11I think it's pretty embarrassing for me
3:14as a YouTuber who has already changed
3:16his own life and who has actually
3:18already changed many other people's
3:20lives, like thousands of people's lives
3:22from his YouTube videos alone, let alone
3:25my paid mentorship. for me to try and
3:27get on here and like beg for you guys to
3:31have the motivation to be willing to
3:34change your own life. I think you guys
3:36need to look at yourself and just get
3:39real with yourself, man. Because I was
3:41looking back on like that that video
3:43that I scrapped and like it was stupid.
3:46I was just thinking like if somebody
3:48actually wants this [ __ ] they're going
3:50to go and do it for themselves. I
3:52shouldn't have to get on here and tell
3:54you trading has changed my life. You've
3:56seen how it's changed my life. I
3:57shouldn't have to get on here and tell
4:00you about how beneficial this is going
4:02to be for your life. If you see it, then
4:04you see it. If you know you are built
4:07and if you know that you are destined
4:09for a greater life, then you shouldn't
4:11need that motivation. You should already
4:13feel it in your soul. And that's exactly
4:16how I felt when I was learning how to
4:17trade. I knew that I was destined for a
4:19better life. I knew I was destined to do
4:24great and big things. And we're living
4:27in this age of edutainment. And
4:31unfortunately, I fall into this category
4:34where people enjoy watching me or
4:37learning from me because I'm a young
4:40dude that sometimes funny, you know, but
4:45that's just this new age of YouTube,
4:47man. And people watch these videos on
4:51trading, watch strategy videos, watch
4:54confluence videos, but they never
4:56[ __ ] do [ __ ] about it, bro. Like, you
5:00you're making it's it's almost like a
5:02like a feel-good videos. Like, we as
5:05creators are putting out the videos
5:08trying to genuinely help you guys. And
5:10you guys are watching it not to try and
5:14help yourself, but just ju just to
5:15[ __ ] entertain yourself, just to make
5:17yourself feel good as if you you think
5:20that you're you're just making yourself
5:23feel like you're learning something and
5:25then you never go and apply it. It's
5:27honestly like this first video of this
5:30series, I kind of just want to make it
5:33just talking about you and yourself and
5:36how disrespectful it is to yourself and
5:41your creator. for you guys to
5:44be given the gift of life and for you
5:48guys to waste it and [ __ ] squander it
5:53by living your life for other people's
5:56opinions. By living your life that was
5:59given to you for other people and not
6:02for yourself. By living your life in
6:05quite literally the worst way possible.
6:07You clicked on this video because you
6:08don't enjoy the current life that you're
6:10living right now. And you've wasted the
6:13past 18, 20, 30 years living your life
6:19on somebody else's terms, working
6:22underneath someone and disrespecting not
6:26only yourself self but also our creator
6:29that brought us here. And that's really
6:32what makes me upset and it should make
6:34you upset as well that you have one life
6:38for all we know. It's the only one that
6:40we know about. You sit here and you just
6:43let the days go by and you don't feel
6:46any sense of urgency to take your life
6:50into your own hands and take a [ __ ]
6:53risk. Bro, there's too many people in
6:56this world that are too [ __ ] too
6:58[ __ ] soft to take a singular risk.
7:02You think of any successful person in
7:05this world, every single one of them had
7:07to take risks to get to where they're
7:08they're at. It's very very easy in this
7:11world that we're living in to live a
7:13comfortable life. Back in the day, you
7:15know, if you were if you were broke, you
7:17were living a hard and difficult life,
7:18but now with the technology and the
7:20advancements that we have in this world,
7:22it is very very easy to live a
7:25comfortable comfortable life while not
7:28being fulfilled. We have screens in
7:31front of our faces. People are [ __ ]
7:33smoking weed to drown out the noise or
7:37the anxiety or the disappointment that
7:41their subconscious keeps telling them
7:43that you deserve better, but people just
7:47shut that up by taking another puff, by
7:53watching a video like this and then not
7:55taking any action. I want to encourage
7:58you guys to get really [ __ ] pissed
8:02off. Get very, very, very upset at
8:05yourself because every single decision
8:09that you have made from [snorts] birth
8:12has led you to be where you are at
8:14today. And if that does not infuriate
8:17you, if that does not make you so very
8:21disappointed with yourself, I do not
8:23know what will be able to push the
8:25needle for you. And I do not know what
8:28will be able what what sort of fire has
8:31to be lit underneath you to be able to
8:34get you started. Because once you start
8:36taking matters into your own hands, once
8:38you can take full responsibility, it's
8:41not your parents' fault. It's not your
8:43siblings fault. It's not your friend's
8:45fault. It's not your environment's
8:47fault. Once you start taking the blame
8:50for everything in your life, whether it
8:51was your fault or not, but you put the
8:54blame on yourself, no matter what,
8:58that lets you dictate your future
9:00because now your life is in your own
9:02hands. And now you can actually see life
9:04for what it is. Every single day that
9:06you wake up and don't do something to
9:08help you get towards your dream life or
9:11towards your dream version of you, it's
9:14not your shitty job's fault. It's not
9:17how you grew up. It's not how you grew
9:19up. There's people that have literally
9:23grew up in the absolute [ __ ] slums
9:25that are 100 times 1,000 times richer
9:29than me. So to say that you don't have a
9:31chance is stupid. to say that you don't
9:33have a chance at all in this life is
9:35very very very disrespectful to
9:37yourself. That's just kind of been the
9:39thing that's been in my head for these
9:41past two months as you know people are
9:45starting to say, "Hey, let's get
9:47motivated for the new year." Everybody's
9:50writing down New Year's resolutions.
9:52I've had my New Year's resolutions for
9:54the past six months. I knew I I already
9:58knew what I was trying to accomplish
10:01at the end of 2026, halfway through 2025
10:04because I hit all of my goals halfway
10:06through 2025. If you are unwilling to
10:09take action to be able to change your
10:12life, then don't sit there and cry about
10:15how horrible your life is. And I know
10:17this video may be depressing or there's
10:19people that might take this video in the
10:21wrong way because you want to play the
10:23victim role, but at the end of the day,
10:25those are the people that are never
10:26going to make it. So, I don't want you
10:28watching my videos anyways. You're not
10:30the type of person that I'm here to
10:32speak to. So, leave a hate comment,
10:36unsubscribe,
10:38and good [ __ ] Riddics, dude. Those
10:40are not the people that I want to speak
10:41to.
10:43I want to speak to the people who
10:47want to actually make a change,
10:50who are ready to actually take their
10:51life into their own hands and who are
10:54ready to take action.
10:56Like I was saying before, it's going to
10:58be one thing for you guys to tune in to
11:00these videos every single day and just
11:02watch, but that's that's half of the
11:05game. And you're not even you you
11:07haven't even taken your first step yet.
11:08you just watching the videos isn't even
11:11taking any sort of action. You're just
11:13digesting the the content.
11:17After every single day, you need to be
11:19taking active action
11:22to do something based off of these
11:25videos. And if you are not waking up
11:29every single day with a fire lit up
11:30underneath your ass,
11:34feeling anxious, feeling just like so
11:37ready to [ __ ] go because you know
11:40time is ticking and you know your time
11:42is getting wasted away and there's no
11:44better time to start than now. Then like
11:46I said before, I do not want you here.
11:49So, if you guys are one of those people
11:51that just feels like nobody is there for
11:53them,
11:55that's what I want to be for you. I want
11:58to be your guys's crutch. I want to be
12:00your guys's guide. I want to help you
12:02guys get to where you want to go in your
12:04life because I know when I was trying to
12:07make this work, I didn't have anyone to
12:08lean on and it was very, very difficult
12:11mentally for me. So, this is for
12:14everybody that is ready to take a risk,
12:17ready to live life on their own terms,
12:19and ready to actually build the dream
12:21life that they've always wanted.
12:24So, set those goals, set that road map,
12:29and we are going to be in for a good new
12:33year. And also, I I don't want you guys
12:35thinking that whatever, like this is on
12:37some New Year's motivation
12:40um like [ __ ]
12:44I'm going to show up for you guys
12:46regardless. I I I showed up all last
12:49year um and I'm going to show up again
12:52this year and put in the same if not
12:54more effort for you guys. So, I mean,
13:00I'm I'm I'm here for you is essentially
13:02all that I'm trying to say is that like,
13:04you know, you can count on me no matter
13:06what. You just have to count on yourself
13:08to show up. So, yeah. Um,
13:12happy New Year's and let's let's let's
13:17take this [ __ ] head on, boys. This is
13:19going to be a crazy year, not only for
13:22myself, but also for you guys. I know it
13:24without a doubt. Without a doubt in my
13:26mind, I [ __ ] know it. And hopefully
13:28you guys can light that fire under your
13:30ass and wake up every single day ready
13:32to take action and ready to
13:36go and just take that dream life. Go get
13:40it. Let's go and [ __ ] get it, boys.
13:43We are going to be talking about the
13:45mindset and the psychology that you guys
13:47have to have in order to make money with
13:50trading. I know a lot of people are
13:51probably going to skip this video and
13:54say, "This isn't beneficial. I just want
13:56to learn the strategy to make me money.
13:58TJR, show me the strategy to help me
14:00make money in trading in 2026." Well,
14:03unfortunately, strategy is only one step
14:06of the puzzle. So, I'm going to pretty
14:08much just do an overview and hopefully
14:11rewire how you guys think or are
14:13thinking about trading so that you guys
14:16can have the right headsp space when
14:18you're going about taking action and
14:20trading. This is mainly focused on
14:22trading psychology. This was a huge
14:25mindset shift that literally helped me
14:27turn from being an unprofitable trader
14:29into a profitable trader. So hopefully
14:31this can help you guys out as well. So
14:34what I like to do with pretty much all
14:36of my concepts, you you'll see me do
14:38this with uh every single one of the
14:40confluences when I'm explaining and
14:42teaching them to you guys. Uh when I'm
14:44explaining the strategy, everything for
14:46me needs to make sense. Why are we using
14:50this thing? What does this thing mean?
14:53Why are we executing an order here?
14:55Right? Uh why are we using certain
14:57confluences? It's because orders are
14:59getting filled or it's showing a
15:00continuation in a trend. I need to know
15:02the reasoning why. Okay? And that's
15:05where I struggled a lot with some of
15:07these other strategies that are online
15:09like a support and resistance. I didn't
15:11I like for support and resistance, you
15:14know, it's just like, oh, we break
15:16through a ceiling and then we retest the
15:18floor, the ceiling turns into a floor.
15:20You don't really know what's going on in
15:22in the market versus the way that I
15:23trade and the way that I'm going to
15:24teach you throughout this entire month,
15:26you guys will actually be able to
15:28understand like, hey, when we take out a
15:31sweep of liquidity, and I know that for
15:32some of you guys, if you guys are brand
15:34new to trading, this may sound daunting.
15:36This may sound intimidating, but don't
15:38worry, you guys will be able to
15:39understand this. Like if we take out a a
15:41draw on liquidity, that means, hey, we
15:43have the potential to fill orders. What
15:45does the potential to fill orders give
15:47us the possibility to do? It gives us
15:48the possibility to reverse the trend. If
15:50we're going to reverse the trend, then
15:52I'm going to start looking for more
15:53confluences to show confirmation that
15:56the trend is reversing and then I'm
15:58going to look to enter. See how see how
16:00much more of a sense that makes compared
16:02to just oh like this is just some random
16:05chart pattern and you have to blindly
16:06press buy and just like hope that it
16:09works out. For me, I like to actually
16:11understand why we're doing things and
16:13that's what I want to talk about in
16:14today's video. This is strictly going to
16:17be talking about what is trading, what
16:20like genuinely what are we doing when we
16:22are trading. So, the mindset that most
16:24of you guys have when you guys got onto
16:27the first video and started watching
16:29through this series is you guys were
16:31thinking, "I want to make money in 2026.
16:34I want to have a better life. I want to
16:36be a millionaire. I want to live life on
16:39my own terms. I want to be free." And
16:42all of those things are are great. You
16:44know, it's good good to be thinking that
16:45way, but it's it's it's the wrong way to
16:48think when we're when we're getting into
16:50trading. Okay? So all of you guys are
16:52getting into trading to make money.
16:54Okay, so you're saying why are we
16:56trading? To make money. Most people
16:58think that's the objective with trading.
17:00That's not the objective with trading.
17:01And a good analogy that I like to give
17:04is, and you guys will hear me give a
17:06bunch of these basketball analogies. I
17:08played basketball all throughout high
17:09school. Um, one of my favorite sports.
17:12And it it's very comparable to trading
17:14because trading is a skill set.
17:15Basketball is a skill set. It's very
17:17easy to correlate the two. But anyways,
17:20let's think about LeBron James, okay?
17:24Was he thinking when he was getting into
17:25basketball, I want to make money or was
17:29he just playing the sport and was he
17:31just trying to get better at the skill?
17:32He was trying trying to get better at
17:33the skill. Maybe, you know, he was
17:35thinking in the back of his head, hey,
17:37if I get good enough at this skill set,
17:39there's going to be money at the at at
17:41the end of the road for me. But what
17:43does he have to do first? He has to get
17:45good at the skill. He's not thinking
17:46when he's on the basketball court in
17:48high school, he's not thinking, "Oh,
17:51this bucket is going to make me 10 bucks
17:53down the line," or, "Oh, this assist or
17:56this pass that is good is going to make
17:59me $15." He's not thinking like that.
18:01He's just thinking, I want to play to
18:03the best of my abilities. And then when
18:05he's practicing, is he actively
18:06thinking, oh yeah, if I put up a 100
18:08shots during practice, that's going to
18:10make me a hundred bucks. Or is he
18:12thinking, "No, by me putting up a 100
18:14shots during this practice, it's going
18:16to make me better at at playing
18:18basketball and it's going to increase my
18:20skill set at the skill of being a ba
18:22good basketball player." And then in
18:24turn, what's the side effect of being a
18:26really good basketball player? You can
18:28potentially make money and a lot of
18:30money from it. So, how does this
18:32correlate to trading? So, every single
18:33one of you guys like, why are you guys
18:35getting into trading? Why did I get into
18:36trading in the first place? It was to
18:38make money. Everybody wants to make
18:39money and unfortunately trading is very
18:42strongly and very closely correlated to
18:44making money. The biggest issue with
18:47this is that that causes us to take
18:51incorrect action when we get onto the
18:54charts. Because if I get on to the day
18:56trading charts and I'm thinking all I
18:58want to do today is to make money, that
19:02can lead me to take a plethora of
19:04actions that are going to be detrimental
19:06to my account balance, to the funded
19:08account that I'm trading on to cause me
19:10to potentially lose money. So, if I get
19:13into the market and I'm sitting there
19:16and I'm thinking I want to make money
19:19today, um,
19:22you know, I'm going to press buy right
19:24when market opens off of some sort of
19:26fear of missing out because I want to
19:28make money, right? How do I make money?
19:30I'm going to leverage my entire account.
19:32I'm going to put my entire account on
19:34the line and I'm going to press either
19:36buy or sell. And that has the potential
19:38to make me money. But is that what we
19:40should be doing? No. We need to be going
19:42into trading with a strategy. We need to
19:44be taking trades based off of price
19:46action, based on the candlestick charts.
19:48And that's what this entire series is
19:49going to teach you guys what to do. So,
19:52in turn, when we get into the market,
19:53and if we're thinking, hey, I'm only
19:55here to make money. That's going to
19:57cause us to take multiple trades that we
19:59shouldn't be taking. It's going to cause
20:00us to risk more than we should be
20:03risking. And in turn, it's going to lead
20:05us to a reward or consequence that we do
20:09not desire, which is actually losing
20:11money and not being able to predict
20:13where price wants to go. And that's
20:15actually what trading is about. How do
20:18we make money from trading? Well, we
20:20have to get good at the skill set of
20:21trading. So, what is trading?
20:24What is day trading?
20:26Day trading is having the ability to
20:30predict where price on any sort of asset
20:34class is going to go
20:37with a high probability on a daily
20:40basis.
20:42That is how you become a skilled day
20:44trader. And the best side effect in the
20:46entire world of gaining that skill set
20:49is making money. So when we get onto the
20:53charts, are we thinking I want to make
20:54money today? No, because that's going to
20:56lead us to take poor action. However, if
20:58we get onto the charts and we think, how
21:01can I predict where price is going to go
21:05with a high probability today? That's
21:08going to cause us to take much safer,
21:11much calmer action, and in turn, it's
21:14going to lead us to a desirable result,
21:16which is potentially being a profitable
21:18trader. Okay. So, how do we predict
21:20where price wants to go with a high
21:22probability? Well, that's what I'm going
21:24to teach you throughout this entire
21:26YouTube series of how we can use
21:28different confluences, build a strategy
21:30that gives us high probability of
21:32predicting where price wants to go and
21:34then to be able to do it on a daily
21:35basis, to be able to execute this
21:37strategy, to be able to predict when one
21:40thing happens and where price is going
21:42to go following that. That is what
21:44trading is. Trading is about being able
21:47to predict price action with a high
21:49probability on a daily basis. Okay? And
21:52that's all trading is. We have to get
21:54really freaking good at predicting where
21:56price wants to go. We we aren't trying
21:59to get good that that's the thing with
22:01everything every successful person,
22:04every single skill set in the world.
22:06People say, "Yeah, that dude's really
22:08good at making money." No, he just has a
22:10lot of skills. That dude's really good
22:13that like, think about it. The best best
22:16basketball players in the world, they're
22:18really good at making money. But why are
22:20they good at making money? because
22:21they're the best at their skill. The
22:23best day traders in the world, they're
22:25really good at making money. Why?
22:27Because they're the best at their skill.
22:29You think about the best artists in the
22:30world making a [ __ ] ton of money or most
22:33of them are dead. So, that's kind of a
22:35bad example. Um, but you think about any
22:37other skill set, somebody who's the best
22:40at something in the entire world. I
22:42mean, depending on what category that
22:45skill set is in, they're going to be
22:47able to maximize it and they're going to
22:48be able to monetize it and they're going
22:50to be able to make a lot of money
22:51compared to everybody else in their
22:52field.
22:54You know, the the worst basketball
22:55players in the world, are they making
22:57are they making any money? Not through
22:59basketball. They're not.
23:01Okay. So, that's how we need to be
23:03thinking about trading. when we're
23:05thinking about trading, we're we we I
23:08need you guys like write this down in
23:10your notebook, whatever it is, you guys
23:12need to get it through your head that
23:14day trading is not I repeat, it is not
23:17about making money.
23:20So, when you guys are going through this
23:21YouTube series, you guys need to remove
23:24the thought process of, okay, by me
23:26learning this confluence, is this going
23:28to help me make money today? No, it's
23:30not. But what is it going to help you
23:32do? What are all of these videos going
23:34to help you with in your trading? They
23:37are going to help you build your skill
23:39set as a trader. And in turn, if you
23:42guys can become a skilled trader, if you
23:43guys can build the skill set of being a
23:46being able being able to predict price
23:49action with a high prob jeez, being able
23:53to predict price action with a high
23:54probability on a daily basis. The
23:56awesome side effect of having that skill
23:58set is the ability the ability to make
24:01money from the markets and that and and
24:04that that's how we need to be thinking
24:05about trading. And it's very very
24:08difficult to remove that from your
24:09headsp space because that's why you guys
24:10clicked on this series. You guys are
24:12trying to change your life. How what do
24:14you guys think about changing your life?
24:15It's boom life-changing money. How can
24:17we change our life? Money is a tool.
24:19Money is energy. Money helps us do
24:21things. Money can help us get places
24:23that we want to be. Okay? It gives us
24:25leverage,
24:27but we are unable to make money with no
24:30skills. The only way to be able to get
24:33to the money is by building skills that
24:37help us get there, that help us create
24:39and generate wealth. And that's what I
24:41want to do within this YouTube series.
24:43But you guys have to ship. I I can
24:45promise you literally without a doubt in
24:48my mind that if you guys go into the
24:50markets thinking I want to make money
24:51today or how can I make money today, you
24:54will never be a profitable trader. No
24:55matter what, if you as you guys have
24:58that headsp space, if you guys keep that
24:59mindset throughout your entire trading
25:01career, you will never make money from
25:03the markets ever, ever, ever, ever,
25:05ever, you will never be a net positive
25:07day trader. You guys have to remove the
25:11mental
25:13attachment that you guys have from money
25:16in order to find success within day
25:18trading. That's the only way that you
25:19guys are going to be able to make this
25:21happen. Okay? And by doing that, it's
25:25going to help you guys one, not be
25:28focused on making money so early because
25:29again, this is a skill set. This is
25:31difficult to learn. I would be lying to
25:33you if I told you guys that. Yep. right
25:35after you guys go through this entire
25:37YouTube series, you guys are going to be
25:38freaking millionaires. No, that's not
25:39the case. Like I said on day one, this
25:41is a 50/50 transaction. You I'm making
25:44these videos for you. I'm going to show
25:46up every single day. It's up to you guys
25:47to watch the videos, but then also up to
25:50you guys to take action on these videos.
25:52If you guys aren't taking action on
25:53these videos, then you're going to go
25:54nowhere.
25:56You guys, I'm providing you with the
25:58knowledge and the education to help you
25:59guys build the skill set in the best way
26:01possible, but it's up to you guys to
26:03take action to actually start building
26:04the skill itself. Cuz I can't do the
26:07work for you. You can.
26:10And that's really what I want to focus
26:12today's video on is just removing the
26:15mental and the emotional attachment from
26:17money. And the second that we remove the
26:20emotional and the mental attachment from
26:21money within trading, the second that
26:23it's it's just okay, I don't care if I
26:26lose a trade. Why? Because first of all,
26:28you guys should be trading on a demo
26:30account. You guys are learning how to
26:31trade. You guys should be trading on an
26:32account that isn't real money. That's
26:34how you guys can build the skill set.
26:36Okay? So, when you guys lose, you don't
26:40care because first of all, you're not
26:41actually losing real money. And then
26:43also you're actually happy that you're
26:45that you lost because that's a lesson
26:47and that's room for growth. That's room
26:49for improvement and that gets you closer
26:51towards what our actual end goal is with
26:54trading is to be very highly proficient
26:56about predicting where price wants to go
26:58with a high probability on a daily
26:59basis. You guys are going to hear me
27:01repeat that over and over and over again
27:02throughout this entire series because
27:04that is what trading is. That's why the
27:06title of the video is like this. What is
27:08trading? It's predicting where price
27:10wants to go with a high probability on a
27:12daily basis or at least that is what a
27:15high-skilled trader does. They do not
27:17make money. Making money is a side
27:20effect of the skill set that they have.
27:22So our goal with this entire series and
27:25with learning these confluences,
27:26learning the strategy, reinforcing our
27:29psychological discipline and learning
27:31the riskmanagement strategy that we've
27:33built out,
27:35it helps us get better at the skill set
27:37of day trading and not get better at
27:40making money. Okay? There's no such
27:43thing as as being good at making money.
27:46Somebody that's good at making money
27:48just has a lot of skills.
27:50Okay? Okay. And if you're bad at making
27:52money, you have no skills.
27:55So again, we need to be thinking if we
27:58lose a trade, are we sad? Are we mad?
28:01Are we disappointed? No. We should be
28:03happy because that's a lesson learned.
28:05That's a mistake that we can never that
28:07we can try and never make again. And
28:09then what is that going to cause us to
28:10do? It's going to cause us to grow and
28:12it's going to cause us to build that
28:14skill set of trading.
28:18Okay. So, when you guys win, what are
28:20you going to do? Are you going to be
28:22happy because you made money? No. You
28:24shouldn't be you shouldn't be happy
28:25about it.
28:27I mean, granted, you can you can pat
28:30yourself on the back, but what you
28:31shouldn't be focused on the money. You
28:33should be looking at what did I do
28:35correctly on this trade. Why? Because
28:38our focus is not to make money. Our
28:41focus is how can I repeat that winning
28:43trade? How can I replicate that? So, I'm
28:46going to look back at my trading journal
28:48and I'm going to say, "Okay, what are
28:50all the things that I did correctly so
28:51that I can do this again?" Because what
28:53does that help me do? It helps me become
28:56more proficient at predicting where
28:58price wants to go on a daily basis. If
29:00I'm able to predict where price wants to
29:01go on one day, I'm going to analyze the
29:04[ __ ] out of that trade. I'm going to
29:05look through my trading journal and I'm
29:07going to say, "How can I do this again
29:08tomorrow?"
29:11You want to analyze your wins, analyze
29:13your losses. Losses are lessons.
29:15Mistakes are lessons that ideally you
29:17never make again and that is going to
29:19cause growth. You look at the wins. You
29:21look at the the pros that you guys have.
29:24Okay? You look at the good thing that
29:25the good things that you guys have done
29:27within the market and then you replicate
29:29it. You do more of the good, less of the
29:30bad. That is how growth happens. That's
29:32how we build skills.
29:35Now, just like with any skill, after
29:38learning these confluences, are you guys
29:40going to be marking them out correctly?
29:42No. That's like giving me a piano and
29:45setting in front of me. I've never
29:46played piano in my entire life and
29:48telling me, "Hey, play this Beethoven
29:50piece and putting a freaking sheet in
29:52front of me and I'm just going to be
29:53clanking away at the keyboard." And I'm
29:55going to absolutely suck. But then,
29:57let's say I watch a YouTube video on how
30:00to play piano. It's a beginner beginners
30:03whatever YouTube video. And I say,
30:04"Okay, now I know a couple notes." the
30:06next day that I go and attempt playing
30:08Beethoven's thing. I'm still going to
30:10suck and I'm not going to do it
30:12correctly, but hey, at least I know a
30:14couple notes and at least I I'm I'm I'm
30:16better than I was yesterday. And then I
30:18keep learning. I keep watching YouTube
30:20videos. I keep practicing. I keep
30:22practicing. I keep practicing. I keep
30:24failing. I keep failing. I do less of
30:27the fail. I do more of the good. I keep
30:29working and I keep working on my skill
30:31set. And then eventually I am going to
30:33be good at playing piano. It's the same
30:35thing with trading. It's the same thing
30:36with basketball, okay? LeBron James
30:39didn't wake up and just become the best
30:40basketball player overnight, okay? It
30:43was a lot of hours in the gym. It was a
30:45lot of like it it was just literally
30:48like putting in more work than anybody
30:50else. Just putting in putting in
30:52significant significant amounts of work.
30:54Obviously, he's the goat. He's got some
30:56nice genetics attached to his body. But
30:58with trading, trading, trading, oh man,
31:02trading truly is a skill-based game.
31:04There's no genetics involved. There's
31:06nothing involved. It truly is who can
31:09put in more work and who can put in the
31:11most amount of work to the point where
31:12it is unreasonable for them to not be a
31:15skilled trader. That's how you guys
31:16should be thinking about this. That's
31:18how you guys should be thinking about
31:19this series is how can I watch these
31:21videos and then how can I put in so much
31:23work to the point where if I don't
31:25become an to the point where me becoming
31:27a profitable trader or me staying
31:30unprofitable is very unreasonable to
31:32happen. you need to be putting in so
31:34much work to the point where you guys
31:36becoming a profitable trader should be
31:39expected. Like I know that's how it felt
31:41for me where it's like dude I've been I
31:43put in years of work, hours of chart
31:45time. So the time that I turn like when
31:47when I turned profitable I wasn't like
31:50jumping for joy. I wasn't excited. I was
31:53just thinking it's about damn time
31:55because I've been doing all of this work
31:57and I just knew that it was going to
31:59happen. Like you guys see all the
32:00freaking YouTube plaques up behind me,
32:03you know, and this is this is something
32:05else. Like I I think about my growth on
32:08social media and when I hit 100,000
32:10subscribers, I wasn't excited. I was
32:12like, I I I already knew that was going
32:15to happen. When I got my million million
32:17subscriber plaque, I was like, you know,
32:19this is great and I really appreciate
32:21the love and the support that I get from
32:23my followers. But for me as a personal
32:26accomplishment, did did I feel anything
32:29about that? Hell no. Because I knew it
32:31was going to happen because of the
32:32unreason because of all the [ __ ] work
32:35that I put in. I I knew that I was going
32:38to get that plaque because I was putting
32:41in the work required to get there. And
32:44that that's exactly how you guys should
32:45be thinking about trading where it's
32:47like the the work that you guys are
32:49putting in on a daily basis needs to be
32:54like if if you guys are looking at your
32:56end goal of becoming a profitable trader
32:58or making money from trading. It's not a
33:01matter of like oh I'm I'm like so
33:03excited to become profitable. It's like
33:06uh I just I know that I'm going to be a
33:08profitable trader and it's just only due
33:10time with the amount of work that I'm
33:13putting in.
33:15So that's what I wanted to talk about in
33:17today's video is reshaping the way that
33:20you guys think about one making money,
33:22two going about trading because I know
33:24for a fact I mean bro I was a victim of
33:26it too and victim of it for a long time
33:29until I actually got through my head
33:31like hey day trading is about predicting
33:34predicting these charts not about you
33:36know trying to make $500 every single
33:38day you know not not everybody can have
33:41a green day every single day. there's
33:42losses that are involved with this. So
33:44the second that you just disassociate
33:46trading the direct correlation and
33:48that's the super unfortunate thing with
33:50trading. It's like hey you either made
33:52money today or you lost money today and
33:54there's just a direct correlation versus
33:56like any other business. You know LeBron
33:58has a bad basketball game. Does that
34:00immediately mean he's going to make he's
34:02he's he's going to make less money? No.
34:05He just had a bad game. He could have a
34:07hundred good games and then one bad
34:08game. Does that make him a bad
34:10basketball player? Hell no.
34:12And it's the same thing with trading. We
34:13can have a 100 green days and then one
34:15red day. But if we dwell on the red day
34:17and say, "I should have made money today
34:19and oh, trading is all about making
34:21money." Then on that red day, I [ __ ]
34:23up and I'm no longer a good trader.
34:27So, we need to start start
34:28disassociating trading and the skill of
34:31trading with making money itself. And
34:34it's more focused on, hey, what's my win
34:37rate? How often am I winning compared to
34:40losing? because that's showing a direct
34:42correlation to the skill set of trading.
34:43What what's my risk-to-reward? How much
34:45am I risking compared to what I'm
34:47winning on a on on a on a trade-to-rade
34:49basis? Okay. And then risk-to-reward and
34:53win rate combined together, that's going
34:55to spit out whether you're a profitable
34:57trader or not, or realistically whether
34:59you are a skilled trader or not. And
35:01that's what I'm going to I'm going to
35:02show you guys kind of how we can break
35:04down mathematically with data, how we
35:06can look at some of these online trade
35:08journals where we can input and feed in
35:10all of our broker statistics in there
35:12and it can spit out what our win rate
35:14is, what our risk-to-reward is, how we
35:16can optimize risk management based off
35:17of those numbers. We're going to get
35:19super super down into like the
35:21nitty-gritty of stuff like that and like
35:23show you guys what percentage win rate
35:25you need uh and what risk-to-reward you
35:28need in order to be considered like a
35:30profitable trader or actually to be
35:31making money consistently from the
35:32market. We're going to get into all of
35:34that, but the first thing that we need
35:35to do is we need to separate the
35:38emotional and the mental attachment that
35:40we have to money. And um once we do
35:43that, that's when the game actually
35:44begins. Because instead of thinking I
35:46want to make money today, it's I want to
35:48get better at trading today. And that is
35:51our first step in the right direction to
35:54learning the skill set of trading. So
35:56with that being said, I love and
35:57appreciate you guys. We'll get into some
35:59actual trading stuff tomorrow. Peace.
36:02What's good, boys? Welcome to the
36:04beginner side of things. This is going
36:06to be an introduction to Trading View.
36:09How to read a candlestick chart. So,
36:11we're going to be going over how to
36:13understand candlestick anatomy, how to
36:15identify highs and lows in the markets,
36:17and then how to identify trends in the
36:19markets. And then from this we will
36:22start delving into kind of what most
36:24people are going to want to be a part of
36:26this series for which is liquidity
36:28explained, fair value gaps explained,
36:31advanced liquidity concepts, inverse
36:33fair value gaps, advanced imbalance
36:36concepts, [ __ ] SMT divergences, time
36:40theory, all of this stuff that actually
36:42helps us become full-time traders and
36:44actually helps us get good at trading.
36:46And if you guys remember yesterday's
36:47episode, what is trading? is being able
36:49to predict where price wants to go with
36:51a high probability on a daily basis. So,
36:54in order to do that, we need to actually
36:56see price. Okay, there's two different
36:58types of traders, and I'll preface this
37:00before we get into looking at the chart.
37:02This is just super quick. There's two
37:04different types of traders. There's
37:05technical analysis traders, which is
37:07what I am. Okay, I do the majority of my
37:09trading purely based off of what the
37:11chart is telling me. So, what price is
37:13telling me? And then there's fundamental
37:15analysis traders. Okay, these are people
37:17who very rarely actually are looking at
37:20the chart and are more so looking at the
37:23news. So, there's several good examples
37:25of this, but somebody like Warren
37:28Buffett, for example, he's doing his
37:31investing off of just the global news or
37:35the news around the company, you know,
37:37he's reading earnings reports, all that
37:38stuff. He's not necessarily focused on
37:40like, hey, this candlestick closed this
37:43way and then this candlestick closed
37:45this way. So, I'm going to look to
37:46invest right now. He doesn't do any of
37:48that, okay? He focuses on the
37:50fundamental, the big macroeconomic side
37:53of things. Um, and again, he's more of a
37:55long-term, you couldn't even call him
37:58like a swing trader. He's just like an
38:00investor, you know, like buy and hold,
38:02you know, hopefully that you're you're
38:03right over the long long period of time.
38:06Um, but for us, we are actively trading
38:09price, right? That's how I explain what
38:11trading is. That's what day traders do.
38:13We are just trying to buy low, sell
38:16high, sell high, buy back low, right?
38:18And that's how we're going to make
38:19money. Obviously, there's going to be
38:21mistakes involved, but in order for us
38:22to do this, we have to be able to see
38:25price. And this gets us to Trading View.
38:30Okay? So, this is the first time that
38:32you guys are going to be looking at a
38:33chart. What I want you guys to do,
38:35whether it's during this video or after
38:38this video, whatever, you guys can
38:39follow along with me. You guys are going
38:41to go to tradingview.com. This is the o
38:44I mean the only kind of charting
38:46platform that I would use for active
38:49live charting. Okay, there's a couple
38:51back testing softwares that we'll get
38:52into much much later down the line in
38:55this series to help you guys practice
38:56this skill set. But in terms of live
38:59trading and reading the live market,
39:00Trading View by far has the cleanest UI.
39:04Everybody in trading uses it. I I
39:06literally don't know anybody that is an
39:09active day trader that doesn't look at
39:12Trading View charts. So, when you guys
39:14go to tradingview.com,
39:15this it it's not super overwhelming.
39:17You'll see a get started for free tab
39:19right here. Um I'm going to click this
39:21and then all my information is going to
39:23pop up. So, I'm just going to put my
39:25face back over the screen real quick and
39:26then click on this. But essentially,
39:29before we before we do that, you can see
39:31that you can do you can get started for
39:33free. So, I have a premium version of
39:36Trading View, but that's literally just
39:38so that I can have multiple indicators
39:41on um on my chart, and we'll get into
39:44the indicators that I use later down the
39:46line once we get through all the
39:48confluences. Um I personally don't use
39:50any indicators to actually take trades.
39:53Um but I use indicators to help me mark
39:55out my confluences. Uh but that's
39:57besides the point for you guys getting
39:59started. The awesome thing about Trading
40:01View, you guys can get started for free.
40:03So, you guys are going to click get
40:04started for free. I'll do the same on my
40:06end. All my Okay, awesome. My
40:09information hasn't popped up yet. You'll
40:11get something like this that shows up.
40:13Okay. And it says free until you're
40:15ready. So, you can literally do boom. $0
40:17forever. Sign up. No credit card needed.
40:20Um I'm pretty sure for me, I'm on one of
40:23these plans. Like I think I'm on the
40:24plus or the premium plan. Like I said,
40:27you know, I I'm doing this full-time.
40:30You guys definitely do not need to be
40:33purchasing the premium plan. You guys
40:35just go ahead and sign up for free. So,
40:36you guys are going to click that,
40:40sign up for free, and then this is where
40:42all my information pops up. So, I'm just
40:44going to put in
40:47just so I can get a like base
40:51trading view layout. Okay, awesome. Oh,
40:55oops. I signed into my actual account.
40:58Let me sign back out.
41:00Sign back in. [clears throat]
41:02Let's do this account. This account
41:05should have nothing
41:09lit. Okay, cool. So,
41:13once you're signed in, it'll look
41:15something like this. Okay, again, pretty
41:17overwhelming, but what you guys are
41:19going to do, you're going to click on
41:20Trading View home, and then from there,
41:22there's going to be something that says
41:24launch super charts. So that's what we
41:25want to do. We're going to have a watch
41:27list full of a bunch of stuff on the on
41:29the lefth hand side. We have indexes. We
41:31have forex. We got commodities. We got
41:33Bitcoin. To the right hand side. This
41:35can be super daunting. This can be super
41:37scary. But don't worry, we're going to
41:39clean this up for you guys. All that you
41:40guys are going to do is you're going to
41:41click launch super charts.
41:44Then that's going to take you guys into
41:48something that looks like this. Now mine
41:51my chart I actually have already
41:53programmed this to make it look this
41:56way. So I want to see if I can reset
41:59this to
42:02the base.
42:09So your guys's will be looking
42:13something like this. Okay. And you guys
42:16will also probably have
42:19some graphs on the back.
42:28You guys will have something like this.
42:30You guys will have
42:33Yeah, this is pretty approximately
42:36what your guys' chart will look like.
42:38Again, very overwhelming,
42:41overstimulating. So, you're going to do
42:44exactly what I did, and we're going to
42:46reformat these chart colors. Me
42:48personally, I do not like having green
42:50and red candlesticks on my chart. So, if
42:52we look at what my actual chart looks
42:55like, it looks like this, right? And if
42:57we go to the chart settings, you guys
42:58can do one of two things. You guys can
43:01copy my settings if you guys want to use
43:03the same candlestick colors as me. But I
43:05like to avoid using the green and the
43:07red candlesticks for one reason. It's
43:09because it actually the colors of green
43:12and red negatively affect our psychology
43:15when we're trading. Like we talked about
43:17yesterday, we need to find ways to be
43:19able to disassociate our ourselves and
43:23our mental from the connection to money.
43:26And unfortunately on trading, a green
43:28candle, what do we associate that with?
43:30Making money. A red candle, what do we
43:32associate that with? Losing money. Even
43:34though we're going to be taking long
43:36positions, so buy positions predicting
43:38that the market's going to go up and
43:40sell positions, short positions
43:41predicting that the market's going to go
43:43down. Regardless, we are the the colors
43:46green and red are just known
43:49psychologically to affect how we think
43:52about money. And in turn, that's not
43:54good for us psychology psychology-wise.
43:57So, I use pretty neutral colors. I use
43:59blue and black. Um, I know there's some
44:01people that will do like white and black
44:03and then change the background to
44:05something like a gray. Um, you guys can
44:08choose whatever colors you guys want.
44:10Okay, this is how I have mine set up. I
44:12have blue and then black all the way
44:14through. And then on the back, I have
44:18just a solid white, no grid lines. This
44:21is what my crosshair looks like. Really,
44:23everything else is kind of not really
44:25needed. But what I also want you guys to
44:27do is notice right here where it says
44:29time zone. Okay, we are going to set our
44:31time zone to New York time. Even if you
44:33guys are in Africa, if you guys are in
44:36Brazil, if you guys are in California,
44:40we need to be on Eastern time. Our
44:43brains, everything just need to need to
44:46needs to be programmed to e Eastern
44:48time. Well, you're probably saying,
44:50"Well, I live in Africa and I don't live
44:53on Eastern time." Well, the market lives
44:55on Eastern time. So, in turn, we have to
44:58live on Eastern time. At least our
45:00charts have to live on Eastern time.
45:01Because when we're explaining market
45:04open, I'm going to say, "Hey, market
45:06opens at 9:30." 9:30 a.m. Eastern time.
45:09For me, living in Puerto Rico, market
45:12opens at 10:30 a.m. Eastern. Saying
45:14Eastern time, cuz my head is so like
45:16lock just built to be on Eastern time.
45:19But for me, market opens at 10:30 a.m.
45:22Puerto Rico time. But on the charts,
45:25market opens at 9:30 a.m. Eastern time.
45:27And we just need to be on the same time
45:29time zone or time frame as the market
45:32because when we're explaining session
45:34opens, session closes, like when does
45:36the New York Stock Exchange open, when
45:38does pre-market open, I don't want you
45:41guys to be on Sa Paulo time, okay? And
45:45me saying, "Hey, market opens at 9:30."
45:48and for you guys to be putting a line at
45:50market open, but you're on Sa Paulo time
45:53and I'm on New York time and you're
45:55like, "Hey, the strategy doesn't work."
45:57And it's like, "Well, yeah, because
45:59you're you're you're 3 hours behind or
46:02you're 2 hours behind." So, we need to
46:04set this to New York time. All right.
46:07And once we've done that, okay, we're
46:10going to have Let's reset this
46:14and let's remove this. Okay. We're going
46:17to have something that looks like this.
46:19Now, again, this can be very daunting
46:22and I don't really want to talk like
46:26about how do we even figure out where
46:27the [ __ ] price price is going to go off
46:29of this. We're going to we're going to
46:30learn that in due time over the course
46:33of these next two weeks. Okay? We're
46:35going to be figuring out like, hey,
46:37price comes up, took out this high, and
46:39then went down. Why did that happen? I
46:41could explain that all to you right now,
46:43but it would be a little bit confusing.
46:45So, we're not going to talk about that
46:46right now. We're going to talk about
46:48what do each one of these candles
46:50represent? How can we identify highs and
46:53lows in the market? And then how can we
46:55identify trends in the market? Because
46:56that's the first thing that we need to
46:57do. It's the bare minimum because on
47:00these charts, every every single one of
47:03these charts, no matter what what time
47:05frame you're on, whether you're on the
47:07daily time frame, the weekly time frame,
47:08the hourly time frame, these
47:10candlesticks make up and show us every
47:13single second of price movement
47:14throughout the day, throughout the hour,
47:16throughout every single 5 minutes. And
47:18if you guys are unable to understand the
47:21cand the Japanese candlestick anatomy,
47:23okay, then we it's like we're not even
47:27going to be able to go anywhere. Okay,
47:28that's another thing. There's a bunch of
47:30different ways to read these charts.
47:32Okay, there's bar there's bar candles,
47:35there's hollow candles, there's volume
47:36candles, there's line charts, there's
47:38step line charts, there's columns,
47:40there's high lows, there's volume
47:41footprint, all of this stuff. There's
47:43hyenashi candles. There's Renko candles.
47:47Okay, all of these different types of
47:48candlesticks. But for us to be able to
47:51read the market, Japanese candlesticks
47:53are by far the most valuable because
47:55they tell us four different things about
47:59every single time frame. So, what we're
48:00going to do is I'm going to draw out a
48:03candlestick for us here. This is going
48:05to be a green candle.
48:09Okay. So
48:11this is what
48:14this is what an up candle looks like.
48:16Okay?
48:19And this is what a down candle looks
48:22like.
48:24Now Japanese candlesticks
48:26tell us four different things about what
48:30h about what happened
48:32during during this period of time. So,
48:35every single candlestick represents a
48:38period of time, depending on what time
48:41frame we're on, and I'll explain that a
48:43little bit later, but every single
48:44candlestick represents a period of time
48:48where price went during that time, where
48:50price opened, and where price closed.
48:53So, we'll go over time frames right now.
48:55If we go up to this left-hand side up
48:57here, we can see that there's a bunch of
48:59different time frames. Okay, there's the
49:021 second, there's the 5-second, there's
49:04the 1 minute, there's the 5 minute,
49:07there's the 1 hour, there's the 1 day,
49:09there's the one week, there's the one
49:10month. Okay, whatever time frame we
49:12click on. Okay, so right now we're on
49:14the daily time frame. That represents
49:16the period of time that every single one
49:19of these candles represents. So right
49:22now we are on the 1 day time frame. That
49:25means every single one of these candles
49:27represents 24 hours worth of price
49:31action and price movement. Now, what are
49:34the four key price points that these
49:39candles tell us about what price did
49:42within the 24 hours of the time frame
49:44that we're on the bottom of a green
49:46candle of so this right here we see the
49:49filledin this is what we call the body
49:52of the candle. Okay. So from this line
49:55up to this line, this is what we call
49:57the body of the candlestick. And these
49:59little lines, these are like snail
50:01trails. Okay? So imagine you're a snail.
50:05You got a leaky butt. Okay? You got like
50:08booger booger semen serum coming out of
50:12your butt and you
50:16scooted your butt all the way up here
50:19and then you came back down. There's
50:20going to be a little snail trail showing
50:24on the mud or on whatever the concrete
50:26that hey, there was a leaky butt snail
50:29that went all the way up here at some
50:30point in time. Same thing with this wick
50:32down here. Okay, leaky butt snail at
50:35some point in time during pretty much
50:37candles are leaky butt snails
50:39essentially, but specifically the wicks.
50:42Okay. So, at some point in time during
50:44this 24 hours, Leaky Butt snail went all
50:47the way down here and said, "Oh, I'm
50:49going to turn around and left a little
50:52snail trail on the concrete showing,
50:54hey, there was a there was a snail with
50:56a leaky butt that went down here at some
50:58point in time." And that's essentially
51:00what it's showing us with price. Okay,
51:02price has a leaky butt. Like, uh, if
51:06like wherever price goes, this candle is
51:09going to show it. Okay, so the bottom of
51:13the body. Okay, so again, from here up
51:16to here is the body of the candle. This
51:18is the top wick. This is the bottom
51:20wick.
51:21The bottom of the body of the candle is
51:24the candle open. The top
51:28of the body of the candle is the close.
51:31The top of the top wick
51:34is the high and the bottom of the bottom
51:37wick is the low. So again, this can be a
51:41little bit confusing. So let's walk
51:43through it. We are on the daily time
51:44frame. So that means every single 24
51:47hours, a new candle opens. Okay? So
51:51let's say boom, 24 hours is up. Or let's
51:55say this this candle just closed. When
51:57this candle opened, it opened at this
52:00price right here. So if we look to the
52:01right hand side, we can see the price at
52:03which it opened. $30,241.50.
52:09That's where this candle opened. And
52:11over the course of the 24 hours, price
52:15came down. This was the lowest point
52:18that it got to during the 24 hours. So,
52:20$29,777.50.
52:24And then also at some point in time
52:26during that 24 hours, price came up to
52:29this high, which is at $32,227.
52:34And then at the end of the 24 hours,
52:37where did price close at? It closed
52:40right here. So at the start of the 24
52:42hours, where was price at? Right here.
52:46Sometime during the 24 hours, the lowest
52:48point of the 24 hours 24 hours it got to
52:52was $29,714.
52:55The highest point that it got to during
52:56those 24 hours was $32,214.
53:00And then at the end of the 24 hours, it
53:03ended right here. So this was the start
53:05of the 24 hours. This was the lowest
53:07point that price got to during the 24
53:09hours. This was the highest point price
53:11got to during the 24 hours. And then at
53:14the end of the 24 hours, price closed
53:16right here. Now for a down candle, it's
53:19the exact same except this up here is
53:23the open, right? Because over the course
53:25of 24 hours, if we open at a high price
53:28and we close at a lower price, what's
53:30what's that going to make this candle?
53:32It's going to make it red and it's going
53:33to be a down candle. So on a down
53:35candle, this is the open. This is still
53:37the highest point that price got to
53:40during the 24 hours. This is the lowest
53:42point
53:44that price got to during the 24 hours.
53:47And then once the 24 hours was up, this
53:50is where price was and ended up closing.
53:52So we can see on a bullish candle. Boom.
53:56We can even show you guys in real time
53:58markets right now. So this is another
54:00nice thing about trading view. If you
54:02look to the right hand side, you can see
54:03the time that is left for this candle to
54:06close. So this candle is still forming.
54:08So let's do a little lesson right here.
54:10Where was the open of this candle? This
54:13is a down candle, right? So the open was
54:16right here where the body is, where the
54:18body starts at $25,478.
54:22Where was the highest point that prices
54:25got to within the past 19 hours and 30
54:29minutes that this candle has been open?
54:30Right? Because it hasn't been a full 24
54:32hours yet, or else this candle would be
54:34closed and wouldn't still be forming.
54:35The highest point that this candle has
54:37gotten to, look at this snail trail. Oh,
54:39price came all the way up here to
54:42$25,86.
54:45And throughout the 19 hours and 30
54:47minutes, where was the lowest point that
54:49price has gotten to? right here, the
54:51bottom of the wick at $25,294.
54:56And right now, at this point in time,
54:58where is price currently? Well, we can
55:00see it on the right hand side. It's at
55:03$25,391.50.
55:07So, each one of these candlesticks
55:09represents a day's worth of price
55:12action. So, we can look at yesterday.
55:15Where was the high? Where was the
55:17highest point that yesterday got to over
55:19the course of 24 hours? Right here at
55:22$25,716.
55:25Where was the open? The open was right
55:28here. So price opened at $25,683
55:32at the start of that 24h hour time
55:34period. Where was the lowest point that
55:36price went to during that 24h hour time
55:39period? Down here at $25,429.
55:43And then at the end of the 24h hour time
55:45period, where did price close? It closed
55:48down here at $25,456.
55:52This gives us a very good look again, as
55:56we were just explaining, of what price
55:59did throughout 24 hours. Now, let's say
56:03we want an even closer look. We can just
56:06go down into a lower time frame. So
56:08instead of looking at things on a
56:10[snorts] 24-hour scale, we can look at
56:13things on a 4hour scale. Now by me
56:15changing the time frame, what does that
56:17do? Now instead of every single
56:19candlestick representing a day's worth
56:22or 24 hours worth of price action, now
56:25every single one of these candles
56:26represents 4 hours worth of price
56:29action. So now with that in mind, we can
56:33say, all right, we we know that every
56:36single one of these candlesticks
56:38represents four hours of price action.
56:40And then on the right hand side, what
56:42can we see about this current
56:43candlestick? Well, when did it open? It
56:46opened around 2 hours and 30 minutes
56:49ago. Okay, because it's it has an hour
56:53and 25 minutes left for it to close. If
56:55we look at the candlestick beforehand
56:57during this 4hour time period, where was
57:00the highest point that this that price
57:02went during this 4 hour time period up
57:05to here? Where was the lowest point that
57:07it went to during this 4 hour time per
57:09period? Down here. And if we zoom in
57:12real freaking close, where did price
57:14open? This is a bullish candlestick or
57:16an up candle. It opened right here,
57:19right? Because it closed up. It's a blue
57:21candle. So, we know that it opened lower
57:24and then closed higher. So, it opened at
57:27$25,730
57:29and then where did it close? Right here.
57:32So, during the 4 hour time time period,
57:36it opened right here. During the 4
57:38hours, it got all the way down here. And
57:41then also during the 4 hours, it came
57:43all the way up here. But at the end of
57:45the 4 hours, it closed right here.
57:49What happens if we scale down to the 1
57:51hour time frame? Now we can see if we go
57:54to the 1 hour time frame, we can see
57:57that 4hour candlestick instead of just
58:01in one candlestick, we can see it in
58:02four candlesticks. So we can see that
58:05that 4hour candlestick opened on this
58:08hourly candlestick and then there's one
58:10candle, two candle, three candle, four
58:13candles.
58:15So every single one of these candles,
58:17it's showing us the same price
58:19movements, but now
58:21we're on the hourly time frame. So we
58:23can see even a deeper look of okay, we
58:27know exactly what price did during that
58:29during those four hours. But what if
58:31what if we want to see what price did
58:33during every single hour within those 4
58:36hours? Well, now we can. We can say,
58:38okay,
58:40price opened right here during the first
58:42hour of those 4 hours. The highest point
58:44that it got during that first hour was
58:46up here. The lowest point that it got to
58:48was right here. And then after the hour
58:50was up, it closed right here. And we can
58:52get even lower. We can see, okay, over
58:55the course of that hour, we can see
58:58during 15 minutes. Okay, so now we have
59:01four candles that are showing us 15minut
59:05time intervals that happened during at
59:07that hour that we we were just breaking
59:09down. And you can go as low as possible.
59:13You can see 5 minutes. You can see 1
59:16minute. Okay, where every single one of
59:18these candles is showing 1 minute's
59:21worth of price movement. And it's all
59:23showing us the same thing. So on the one
59:25the one minute, okay, if we look at this
59:28this 1 minute chart, there's no
59:30difference in the price movement besides
59:32the number of candles that are on the
59:34screen, right? Right? Cuz if we scale
59:35this back to the 5minut, we're still
59:37seeing the same price movement but just
59:39on bigger candles because they're
59:41representing larger times. If we scale
59:44back to the hour, it's still showing us
59:46the same time movement just bigger
59:48candles because each candle is
59:50representing a larger period of time.
59:53And then if we scale all the way back to
59:55the daily time frame, we can see one
59:59day's worth of price action encapsulated
1:00:01in one candle. I'm going to get in
1:00:03deeper as this series goes on on what
1:00:06time frames are going to be beneficial
1:00:08for us, what time frames we want to be
1:00:10looking at, all of that stuff. But I
1:00:13don't want you guys to get overwhelmed
1:00:15today. I know when I was watching my
1:00:17first video explaining candlestick
1:00:19anatomy and time time frames like I was
1:00:23freaking out. All you guys are probably
1:00:25freaking out right now. Don't worry.
1:00:27Take a deep breath. It's all going to be
1:00:29okay. you're going to understand this
1:00:31very soon. Um, there's no reason to get
1:00:34overwhelmed just yet. Okay? Just yet.
1:00:37Just yet. There's no reason to get
1:00:38overwhelmed because I know you guys are
1:00:40probably thinking, "How the [ __ ] am I
1:00:42supposed to remember all of this?" Trust
1:00:43me, eventually it's going to become
1:00:45second nature. Just like basketball.
1:00:47Like, you learn how to dribble a
1:00:48basketball, you're bouncing it off your
1:00:49foot, you're hitting it off your knee,
1:00:51and you got to look down to make sure
1:00:53that you're dribbling it correctly. But
1:00:55eventually, once you get good, you're
1:00:56not even you're not even looking, and
1:00:58it's just second nature. You put the
1:00:59ball on the ground and you know exactly
1:01:00where it's going to come back up to your
1:01:02hand. You're hitting it between the legs
1:01:03and you don't have to look down at the
1:01:05ball. Like you're able to do all these
1:01:06moves like subconsciously without even
1:01:10having to think about it. So that's
1:01:12that's eventually where you guys are
1:01:13going to get to. Don't worry. Right now
1:01:15this seems super overwhelming, but don't
1:01:18worry. We we are going to help you guys
1:01:20progress and get you to where you need
1:01:21to be. Now let's talk about now that we
1:01:24understand candlestick anatomy and a
1:01:27little bit about time frames we are
1:01:29going to talk about highs and lows in
1:01:32the market. Now we need to understand
1:01:34highs and lows in the market because
1:01:36this is going to be very key in our
1:01:40strategy and understanding where price
1:01:42wants to go and being able to predict
1:01:44price action with a high probability on
1:01:46a daily basis to make us good traders.
1:01:48We also need to understand trends, okay?
1:01:51And order flow. All right? [snorts] So,
1:01:54I know all that those things sound
1:01:56daunting and sound um scary. They're
1:01:59really not. It's very very simple. I'm
1:02:02going to explain to you guys highs and
1:02:04lows right now. So let's just think if
1:02:07you guys think about a high and a low
1:02:10typically what does if if we if we were
1:02:13to make if you were to just imagine what
1:02:17does a high consist of? Well, is it just
1:02:21constant moves up forever and always?
1:02:24Well, not not really because in order to
1:02:28establish a high, what do we need? We
1:02:30need we need I mean not price but really
1:02:33anything to give us a peak, right? And
1:02:37it's the same thing with trading. So we
1:02:40can't just move up forever and always.
1:02:43There's always going to be a move up and
1:02:46then eventually followed by a move down.
1:02:48And following the move down, that's when
1:02:51we create these peaks and those are
1:02:53highs. Okay? And then if we think about
1:02:55a low in the market, it's the same
1:02:58thing. We can't just move down forever
1:03:00and always. Eventually, we are going to
1:03:03get a move up and then this looks like a
1:03:07low. This doesn't look like a low,
1:03:09right? Because it's like where where's
1:03:11the low? Where does where does it end
1:03:13with a move up? That's all it is. Highs
1:03:17and lows consists of move ups, moves up
1:03:21or a high, we'll do high first. A high
1:03:24consists of a move up followed by a move
1:03:27down.
1:03:28A low consists of a move down followed
1:03:32by a move up. Okay, pretty simple
1:03:35concept, right? It's just a high is a
1:03:39move up followed by a move down. A low
1:03:42is a move down followed by a move up.
1:03:44Congratulations. You guys know what
1:03:46highs and lows are in the market. I
1:03:48know. I know. Probably the most
1:03:50difficult thing you've ever learned.
1:03:52This is this is this learning this is
1:03:55going to help you make more money than
1:03:56your college educa education will ever
1:03:58be able to get you. Believe it or not,
1:04:00move up then a move down that's a high.
1:04:02Move down then a move up that's a low.
1:04:04Now why is this important? Because highs
1:04:07and lows make up trends in the market.
1:04:11Now this is important as well because
1:04:14trends are what move the market, right?
1:04:16There's uptrends, there's downtrends,
1:04:19and then there's consolidation. Okay, so
1:04:22we're going to talk about three
1:04:23different ways that the market can and
1:04:26is able to move. And it sounds dumb, but
1:04:29it's I mean, it's true. Okay, the market
1:04:32can move up or down. Crazy, right? Or
1:04:36sideways.
1:04:38Okay. And there's three different ways
1:04:41to identify whether we're move or sorry,
1:04:45there's ways to identify whether we're
1:04:47moving up, whether we're moving down, or
1:04:50whether we're moving sideways. And the
1:04:52way that we identify that is through
1:04:54being able to identify highs and lows in
1:04:57the market. Like I was just mentioning,
1:04:59a high and a low consists of a move up,
1:05:02then a move down. A low consists of a
1:05:05move down, then a move up.
1:05:07Well, how are we supposed to identify a
1:05:09move down then and a move up? Well,
1:05:11awesome. We just learned about
1:05:13candlesticks. So, what does that mean?
1:05:16Well, we need an up candle followed by a
1:05:19down candle to create a high. We need a
1:05:22down candle followed by an up candle to
1:05:24create a low. Let's go on here and let's
1:05:28look for them. We have an up candle
1:05:30followed by a down candle. That's a
1:05:32high. We have a down candle followed by
1:05:35an up candle. Awesome. You take the
1:05:38lowest point of those two candlesticks.
1:05:41So, whichever wicks wick is lower, boom,
1:05:44this is a low.
1:05:46We have an up candle followed by a down
1:05:49candle. We take the highest point of
1:05:51those two candlesticks. So, this is the
1:05:52highest point that this candlestick got
1:05:54to, but this is the highest point that
1:05:56this candlestick got to. So, this is our
1:05:59high.
1:06:01Again, I don't want you guys to get
1:06:02overwhelmed, but what I want you guys to
1:06:05do is to be on your trading view and
1:06:07mark out five different examples of a
1:06:09high and five different examples of a
1:06:11low. So, we have a move up, then a move
1:06:14down. What do we do? We mark the highest
1:06:16point of those two candles. Which one
1:06:18has the higher wick? This first candle
1:06:20does. Awesome. This is our high. We have
1:06:23a move down, then a move up. Lowest
1:06:25point of those two candlesticks. Boom.
1:06:27This is a low. Now, to be able to
1:06:30identify trends in the market, now that
1:06:34we know how to identify highs and lows
1:06:36in the market, we need to be able to
1:06:39identify a series of highs and lows that
1:06:43form a pattern in the market. So, how do
1:06:46we know when the market is moving up?
1:06:51the market will form something called an
1:06:53uptrend which consists of higher highs
1:06:57being created and higher lows being
1:07:00created in the market. So, when we're
1:07:02moving up, the market will form an
1:07:05uptrend. And an uptrend looks like this,
1:07:08where we come up, we make a high, and
1:07:10then we come down and we make a low. And
1:07:13then we come up, make a higher high,
1:07:15come down, make a higher low, come up,
1:07:18make a higher high, come down, make a
1:07:21higher low, higher high, higher low.
1:07:24Notice how this is this is the high, and
1:07:27then market comes up, it makes a higher
1:07:29high. This is the low. market comes up
1:07:32and makes a higher low.
1:07:34This is an uptrend, right? If we look at
1:07:38the S&P 500 over the course of
1:07:44months, right? We can see that this
1:07:48follows a pretty pretty strict pattern
1:07:51of an uptrend, right? That's why
1:07:53everybody invests in the S&P 500, right?
1:07:56We can see a low right here. We can see
1:07:58a high right here. We can see a low
1:08:00right here. What is this? Low. Higher
1:08:03low. High. Higher high. Higher low.
1:08:07Higher high. Higher low. Higher high.
1:08:10Higher low. We had the COVID move down,
1:08:14but that's we'll we'll talk about what
1:08:16this is on a later date. Higher high,
1:08:20higher high, higher low,
1:08:23higher high, higher low, higher high.
1:08:26Okay. So the S&P 500 is just forever and
1:08:29always, at least on the high time
1:08:31frames, in an uptrend. That's why a lot
1:08:33of people invest their money into it
1:08:34because over the course of a long period
1:08:36of time, it just keeps going up. Okay,
1:08:40now that's an uptrend. That's when price
1:08:42is moving up. Okay, we know that price
1:08:46is making higher highs and higher lows
1:08:48in the market. Now, what happens when
1:08:50price is moving down? Well, it's the
1:08:53same thing. When price is trending down,
1:08:55we are making lower highs and lower lows
1:08:58in the market. So, if we're moving down,
1:09:01we make a low, then we make a high, then
1:09:04we make a lower low, then we make a
1:09:06lower high, then we make a lower low,
1:09:08then we make a lower high. So, there's a
1:09:10low, there's a high, lower low, lower
1:09:14high, lower low, lower high, lower low,
1:09:18lower high. And that is a downtrend.
1:09:22That's how we can spot the market moving
1:09:24down. Now, if we look here, let me try
1:09:28and find a good example of a downtrend.
1:09:31And this is decent.
1:09:33It's good enough at least. Okay. Don't
1:09:36look at any of this on this side because
1:09:38we'll we'll get into like how we can
1:09:40actually decipher all the price
1:09:41movements and break of structure and how
1:09:43new trends form. But right now, I just
1:09:45want us to be able to spot trends.
1:09:47We have a high right here, move up and a
1:09:50move down. We have a low right here.
1:09:53Move down. Then a move up.
1:09:55What do we go do? We come down. We make
1:09:58a lower low. Move down. Then a move up.
1:10:01We come up. We make a lower high. Move
1:10:03up. Then a move down. Come down. Make a
1:10:06lower low. Move down. Then a move up.
1:10:09Come up. Make a lower high. Move up.
1:10:11Then a move down. Come down. Make a
1:10:13lower low. Move down. Then a move up.
1:10:16Come up. Make a lower high. Move up.
1:10:18Then a move down. And right now we are
1:10:21in the process of putting in a lower
1:10:22low. So this is a very distinct, very
1:10:24easy to tell that we are in a downtrend
1:10:26because we have a high, we have a low,
1:10:28we come down, we make a lower low, we
1:10:30make a lower high, we make a lower low,
1:10:31make a lower high, make a lower low,
1:10:33make a lower high, make a lower, even
1:10:35lower low. And this is how we can
1:10:36identify trends. Now, trading is not as
1:10:39simple as saying, hey, we're in an
1:10:40uptrend. I'm just going to blindly press
1:10:42buy. Because trends can break. Trends
1:10:45can change. Okay? Just because we're in
1:10:48a downtrend doesn't mean, hey, I'm going
1:10:50to press sell right now because we're in
1:10:51a downtrend and price is probably going
1:10:53to go lower. That's not the case. But in
1:10:57order to predict where price wants to go
1:10:59with a high consistency and a high
1:11:00probability on a daily basis, cuz that's
1:11:02what we're here to do, we need to be
1:11:04able to identify these market trends and
1:11:06be able to at least see them on the
1:11:08chart and be able to understand them.
1:11:10Okay, so we learned a lot today. Um, I
1:11:15kind of want to end this video here. Um,
1:11:19but you guys have homework. So, what I
1:11:22want you guys to do is first of all,
1:11:23obviously, set up your guys' Trading
1:11:25View account. Choose some chart colors
1:11:27that you enjoy. Make sure that it's set
1:11:29to New York time because that's how
1:11:31we're going to be operating for the rest
1:11:32of the series. Regardless of if you live
1:11:34in Africa, regardless of if you live in
1:11:37Mexico, you need to be on New York time.
1:11:39You need to start programming your
1:11:40brain. Hey, if I want to be an actual
1:11:42day trader, then I need to be on New
1:11:43York time. I need to be on ESD. Okay, at
1:11:46least your charts do bare minimum. Okay,
1:11:50the second thing that I need you guys to
1:11:51do is once you guys set get set up on
1:11:52Trading View, I want you guys to just
1:11:56literally just play around with these
1:11:58time frames. So rotate from like the 4
1:12:00hour to the 1 hour and see, okay, yeah,
1:12:02there's four 1 hour candles that
1:12:04encapsulate a 4hour candle and identify,
1:12:08practice identifying the open, close,
1:12:11the open, high, low, and close of every
1:12:14single candlestick and being good at
1:12:16identifying that. The next thing that I
1:12:18want you guys to do, do like five reps,
1:12:22if even more is even better. Okay? you
1:12:25know, like the more the more work and
1:12:26the more effort that you guys put in,
1:12:27it's going to be better for you guys.
1:12:31What what else I would like you guys to
1:12:32do is I would want you guys to
1:12:36identify
1:12:38five highs in the market. So, five up
1:12:41candlesticks followed by a down
1:12:42candlestick and finding the highest
1:12:44point of those candlesticks together.
1:12:47Five lows in the market. So, move down
1:12:49then a move up. Okay, find the lowest
1:12:51point of those two candlesticks.
1:12:53Identify five uptrends. So, a series of
1:12:57higher highs and higher lows being
1:12:59formed in the market. I want you guys to
1:13:02spot five downtrends, so a series of
1:13:05lower highs and lower lows in the
1:13:07market. And then from there, we can go
1:13:09into tomorrow's video. So, with that
1:13:12being said, love and appreciate you
1:13:13guys. Today was rather beginner
1:13:15friendly, but as we start getting deeper
1:13:17into the series, we are going to start
1:13:19getting into very, very advanced stuff.
1:13:22So again, if you guys are brand new,
1:13:24take your time. Don't feel rushed
1:13:26because we're going to very quickly
1:13:27start speeding things up. If you guys
1:13:29are advanced, again, you guys probably
1:13:31didn't need this video, but it's always
1:13:33good for a little reminder. And yeah,
1:13:35I'll see you guys tomorrow.
1:13:50liquidy explained.
1:13:52Num nuts,
1:13:54welcome to finally when we can actually
1:13:57start talking about fun stuff. Holy
1:14:00[ __ ] the first couple episodes were
1:14:02boring. We're so freaking boring. You
1:14:06guys know how difficult that [ __ ] is to
1:14:07sit down and talk about candlesticks.
1:14:09Now we can actually get into something
1:14:10beneficial. Liquidity. If you guys don't
1:14:13understand liquidity, then you guys are
1:14:14never going Well, I'm not going to say
1:14:16that because there's a lot of people
1:14:17that make a lot of money from trading
1:14:18from a bunch of different strategies,
1:14:19but liquidity is by far one of the most
1:14:23important concepts for the way that I
1:14:25trade and for the way that the vast
1:14:27majority of a lot of other profitable
1:14:29traders trade. And if you guys don't
1:14:30understand this concept, then just
1:14:31re-watch this video a 100 freaking times
1:14:33and get it through your brain. Today is
1:14:35going to be liquidity explained.
1:14:38Tomorrow's going to be advanced
1:14:40liquidity explained and then we're going
1:14:44going to keep going into all these other
1:14:45concepts. So, first thing that we need
1:14:47to talk about today is liquidity. What
1:14:50is it? How to identify it? Why it's
1:14:52beneficial? And how we can make money
1:14:54using it. Okay, let's jump onto the
1:14:58charts. Dude, also this is what I want
1:15:00to do. I realized that I wasn't
1:15:02presenting myself in a in a goodlooking
1:15:07hot manner and I can realize that I can
1:15:10be a bit of an eyes sore sometimes. So,
1:15:12I got ready for you guys today. I
1:15:14dressed up even though I'm spending
1:15:15literally every single day or every
1:15:18single day in my house. I don't go
1:15:19outside. I don't do anything. So, you're
1:15:21thinking TJR's looking good. I'm doing
1:15:24it for you. Okay, we got computer in
1:15:27front of us. Right hand gripping
1:15:30schlong, left hand lotion. Let's get
1:15:34into liquidity and let's try and make
1:15:36you guys bust with some liquidity.
1:15:40First and foremost, what is liquidity?
1:15:43Okay, what is liquidity? Liquidity is
1:15:46resting orders. Okay, that's all it is.
1:15:49Okay, it's just resting orders on the
1:15:50chart. Now, why is this important? Okay,
1:15:52so the first thing that you guys are
1:15:54going to write down all the beginners.
1:15:57Okay, what? Jeez, we're glitching. What?
1:16:00What liquid? What liquidity?
1:16:02[clears throat]
1:16:03>> What is liquidity? What liquidity? Where
1:16:07where liquidity? What is liquidity?
1:16:09Resting orders. Okay. And all of you
1:16:12advanced people, you guys are probably
1:16:14going to be like, I already know this.
1:16:15Shut up.
1:16:17Shut up. Shut up. Shut up and trade,
1:16:21[ __ ] Okay, shut your mouth. You guys
1:16:23are going to learn something from this.
1:16:25Okay. What's liquidity? It's resting
1:16:26orders.
1:16:28Okay. Now, why is this why why is
1:16:31liquidity important to us? Okay. Why do
1:16:32we want to know where resting orders
1:16:34are? Well, in order for the market to
1:16:36move, it needs what? Orders to be filled
1:16:38in order to push the mark in order to be
1:16:41able to push the market in the direction
1:16:42that it wants to go. Because if there's
1:16:43there's no orders getting filled, then
1:16:45the market's just going to go sideways,
1:16:47okay? And not move at all. Okay? Orders
1:16:50are constantly getting filled while the
1:16:52market's open. Okay? So, why do we want
1:16:54to know where liquidity is? because
1:16:56there's resting orders
1:16:58and at areas of liquidity. I was about
1:17:01to jump forward and give you guys a
1:17:03sneak peek or tell you guys the secret
1:17:05of where liquidity is, but we're not
1:17:07quite there yet. We're going to be there
1:17:09in like 2 seconds. Okay, so now that we
1:17:11know what liquidity is first, okay,
1:17:14we're glitching. We're glitching. What
1:17:16is liquidity? It's resting orders. Why
1:17:18is that beneficial for us? Because the
1:17:19market needs orders to move. So
1:17:21obviously us as traders we would like to
1:17:24know where these orders are lying
1:17:26because from there again what are we
1:17:29trying to do with trading? We're trying
1:17:30to accurately predict where price wants
1:17:31to go with a high probability on a daily
1:17:33basis. Okay. Once we understand that we
1:17:38know that if we can spot resting orders
1:17:41in the market then we are going to be
1:17:44able to accurately predict where price
1:17:46wants to go. Because if we if we know
1:17:47where liquidity lies and if we know
1:17:48where orders lies, then we are going to
1:17:51be able to take trades based off of
1:17:52those orders in the direction that those
1:17:54orders are going to push the market. Oo,
1:17:57now we're talking. So liquidity is
1:17:59literally the c the center, the totem
1:18:03pole,
1:18:05the like I don't even know the the
1:18:08better explanation besides it's the goat
1:18:11the goat of confluences. Okay, because
1:18:14this is where everything of our strategy
1:18:18begins. It begins with liquidity. It
1:18:20begins and it ends with liquidity. Okay,
1:18:23so that's why it's important. Where does
1:18:27liquidity
1:18:31lie? Where are the orders? Where orders?
1:18:35Where where the [ __ ] are they? Let's
1:18:38think about this before before I tell
1:18:40you guys. Let's think about this. What
1:18:42did we learn? When was that? Yesterday.
1:18:45Yes, yesterday. What did we learn
1:18:47yesterday? How to identify trends? How
1:18:50to identify highs and lows? So, if we as
1:18:54traders know that the market moves in
1:18:56higher highs and higher lows and lower
1:18:59highs and lower lows,
1:19:02what can we safely assume? Okay, we know
1:19:07that when we're forming an uptrend,
1:19:09people are probably going to be pressing
1:19:10by. Okay. And when people are pressing
1:19:13by because the majority of people
1:19:16understand this market structure order,
1:19:19this is like very very beginner stuff.
1:19:21Most people understand the market moves
1:19:23in higher highs and higher lows, lower
1:19:24highs and lower lows. With that
1:19:26understanding, when we're in in an
1:19:27uptrend, most people they notice and
1:19:31identify, hey, when we push above this
1:19:32high, I'm probably going to press buy.
1:19:35Okay? I'm not telling you guys to do
1:19:37that, but that's what the vast majority
1:19:38of people are thinking. Why are they
1:19:40thinking that? because they're like,
1:19:40"Hey, we're in an uptrend and once we
1:19:42push past this high, that means the
1:19:44uptrend is confirmed and we are going to
1:19:47go up and make a higher high." So,
1:19:48they're pretty much betting on the fact
1:19:50that once we push above this high, we're
1:19:52going to make a higher high and that's
1:19:53how they're going to make their money,
1:19:54right? From pressing buy above this high
1:19:56and then trying to close somewhere up
1:19:58here. Or regardless, if it comes down a
1:20:00little bit, they're still probably in
1:20:01profit because it doesn't come back
1:20:03underneath this high. That's not what I
1:20:05want you guys to do. And I'll explain a
1:20:07little bit later why that's the case.
1:20:10But a lot of people are pressing buy
1:20:12above highs. Okay. On top of that, when
1:20:15these people press buy, what are they
1:20:17doing? Well, there's two ways to take a
1:20:19trade. Okay, in these markets, okay,
1:20:21it's by pressing buy and by pressing
1:20:22sell. The goal is to buy low and sell
1:20:25high. Sell high and buy back lower.
1:20:27Okay, there's two different directions,
1:20:28right? You can make money in both ways
1:20:30through day trading. Okay, this isn't
1:20:32like investing where we're only trying
1:20:33to buy low and sell high. We have the
1:20:35opportunity to make money both ways in
1:20:38the market. Okay? We're switch hitters.
1:20:40Okay? We can put it in the cooch or we
1:20:42can put it in the butt. Doesn't matter.
1:20:44Okay? All fair game around here. Does
1:20:46not matter. We're accepting of both
1:20:49ways. Okay? You can be a switch hitter
1:20:51any day of the week when you're a day
1:20:52trader. Outside of that, we we won't
1:20:55talk about it. Okay? So, when we're
1:20:57pressing buy above highs, what do we
1:20:59want to do? We want to protect our
1:21:00orders by using a stop-loss. This is a
1:21:02very useful tool. It helps us so that we
1:21:06don't lose a significant amount of
1:21:07money. So if we understand in an uptrend
1:21:10we are making higher highs and higher
1:21:12lows. And if most people are pressing
1:21:14buy after we push above highs in the
1:21:16market, what are they going to do or
1:21:18where are they going to put their stop
1:21:19loss to protect their orders? They are
1:21:21going to put it underneath the low. Why
1:21:23are they going to put it underneath the
1:21:24low? Because if this is a true uptrend,
1:21:29then ideally we will not put in a lower
1:21:32low and we will actually put in a higher
1:21:34low. So this is our invalidation point
1:21:37or these traders invalidation point.
1:21:40They're going to be pressing buy when we
1:21:42push above a high and then they are
1:21:44going to put their stop loss or their
1:21:46protection point underneath the low
1:21:47because ideally if this is a true
1:21:49uptrend,
1:21:51we push above the high, we're going to
1:21:52make a higher high, putting their trade
1:21:54in profit. And in turn, if it's a true
1:21:57uptrend, it's going to put in a higher
1:21:59low. And that's why we have the stop
1:22:01loss underneath this low because if it's
1:22:04a true uptrend, then this stop loss
1:22:06shouldn't get hit. And again, it's to
1:22:08protect us just in case market structure
1:22:10wants to shift. If market structure
1:22:12shifts out of this uptrend, then boom,
1:22:14this stop loss gets hit. You lose money
1:22:16on that trade. Now, you're probably
1:22:18saying, TJR, why are you telling me
1:22:21about all of this stuff? This is boring.
1:22:24This is lame. This is useless. Wrong.
1:22:26This is the most useful information that
1:22:28you guys will ever learn in day trading
1:22:30because we are just doing that method
1:22:32right there. Just going through that
1:22:34exercise. What did we do? We just
1:22:36identified two areas where orders are
1:22:39resting. Oh, yep. Get down there, buddy.
1:22:44Suck me off underneath the desk. Suck
1:22:46it, buddy. Yep. And what did we just
1:22:48identify? Where liquidity is? Because
1:22:50liquidity is resting orders. So, what is
1:22:53resting above highs? Buy orders. What is
1:22:56resting underneath lows? Sell orders.
1:22:59And that's for people that are looking
1:23:01for long positions because again,
1:23:02they're pressing buy when highs get
1:23:05pushed above and they're pressing sell
1:23:07or their stop loss is underneath lows in
1:23:10the market. Okay? So, there's going to
1:23:12be resting buy orders above highs, sell
1:23:15orders below lows. Sorry, I'm glitching.
1:23:17That was a big minus sign. You get the
1:23:19point. Now, if we go over to the right
1:23:22hand side right here, when we're talking
1:23:24about downtrends, it's the same
1:23:26situation. if we're in a downtrend.
1:23:28Okay, so this was putting in the in the
1:23:29cooch. Okay, this is when you're putting
1:23:31it in the butt. Again, no hard feelings.
1:23:33I'm all for it. Okay, especially when
1:23:35we're trading outside. Do your thing.
1:23:38Okay, when we're in a downtrend, this is
1:23:40the opposite direction. So, same exact
1:23:43situation as the uptrend, but downtrend,
1:23:46it's just the opposite. So, if we're in
1:23:48a downtrend, again, most traders are
1:23:50going to say, "Hey, we're making lower
1:23:52lows and lower highs. So, when we push
1:23:53underneath this low, I'm going to press
1:23:56short or I'm going to press sell. Why?
1:23:58Because we are in a downtrend and we're
1:24:01probably going to make a lower low. And
1:24:03then on top of that, the people that are
1:24:05pressing sell once we push underneath
1:24:07this low, where are they putting their
1:24:09stop loss? They're putting their
1:24:10stop-loss above highs. Okay? So, notice
1:24:14we have two sets of resting orders. Now,
1:24:17we have people who are going short on
1:24:20downtrends. They are pressing sell when
1:24:23we push underneath lows and they are
1:24:25pressing buy or exiting their positions
1:24:28or putting their stop loss above highs
1:24:31in the market. So we have two sets of
1:24:34resting orders. There's people that are
1:24:37entering into positions when we push
1:24:39above highs and then there's people who
1:24:42are exiting positions or getting stopped
1:24:44out when we push above highs. So there's
1:24:46two sets of resting buy orders above
1:24:49highs. Now, that's a lot of orders.
1:24:52Not only do we have people pressing buy
1:24:56when we push above highs in the market
1:24:57because they think price is going to go
1:24:59higher, but we also have people that are
1:25:02forced to press by that are putting stop
1:25:04losses above highs in the market that
1:25:06are going to get stopped out if these
1:25:08highs get pushed above. Why is that
1:25:11important? Because that is where
1:25:13liquidity lies. And what is liquidity?
1:25:16Resting orders. So again, there's people
1:25:18that are looking to press buy when these
1:25:19highs get pushed above. And then there's
1:25:21people that are exiting their trades and
1:25:23press and being forced to press buy
1:25:24because that's where their stop loss is
1:25:26above highs. Same thing with lows. When
1:25:28we push underneath lows, what is
1:25:30happening? People are entering into sell
1:25:32positions. Okay? And then also
1:25:36there are going to be people when we
1:25:38push underneath lows like let's say we
1:25:40push underneathneath these lows there
1:25:43are people getting stopped out of their
1:25:44buy positions and being forced to enter
1:25:47into sells. So there's two sets of
1:25:50resting orders underneath lows. There's
1:25:52people who are entering into short
1:25:54positions or sell positions when we push
1:25:56underneath lows. And then the the people
1:25:58that were previously in buy positions
1:26:01when we push underneath these lows, they
1:26:03are getting stopped out. So, what did we
1:26:06just learn from that entire
1:26:08conversation? Well, we learned a couple
1:26:10very useful things. We learned where
1:26:13resting orders are. And you're probably
1:26:14saying, "Well, TJR, I'm on the spectrum
1:26:17and I don't know what you just said."
1:26:19Okay, Timmy, shut up. I'm going to tell
1:26:21you where do orders lie above highs and
1:26:23below lows in the market because there
1:26:26are people when we push above this high
1:26:28and let's just put on one trend so we
1:26:31can show this easier for you guys. Where
1:26:34orders
1:26:35>> where are they? They are above highs and
1:26:37below lows and that is where liquidity
1:26:38lies. So let's say the market is
1:26:42trending up. Okay, this is our little
1:26:45uptrend. There are people that are going
1:26:47to be pressing buy when we push above
1:26:49these highs. And then there are also
1:26:51people here. Let me redraw this real
1:26:54quick.
1:26:56Okay, this is good.
1:27:00When we push above highs, there are
1:27:01people pressing by. There are also
1:27:04people with cells resting underneath
1:27:07lows.
1:27:10Okay, why is this beneficial for us to
1:27:12know? So there are some people that see
1:27:15this and think, hey, we're in an
1:27:17uptrend. So when we push above this
1:27:19above this high, they are going to be
1:27:21pressing by.
1:27:23There are also people because again,
1:27:25people have different opinions on the
1:27:27market. People may think that the
1:27:28market's moving in a different way. Not
1:27:30everybody is going to be pressing
1:27:32pressing buy when we push above these
1:27:33highs. Some people on this move de down,
1:27:37they might be pressing sell. And if
1:27:40they're taking a short position on this
1:27:42move down because they think the
1:27:43market's going to continue lower on that
1:27:45move down,
1:27:47what do they have above this high? They
1:27:50have buy orders as their stop-loss. So,
1:27:52there's two times
1:27:56the amount of buy orders. There's people
1:27:58that are getting stopped out from their
1:28:00sell positions when we push above this
1:28:02high. And then there's also people that
1:28:04are pressing buy that are entering into
1:28:07long positions. So there's people that
1:28:09are exiting their sell positions by
1:28:11pressing buy because again if we try and
1:28:13sell high and buy low that's how we make
1:28:16money from the market. So these people
1:28:18see the market moving down they press
1:28:20sell where are they going to put their
1:28:21stop loss above the high because if that
1:28:23high gets pushed above then their bias
1:28:26is wrong and the and the uptrend is
1:28:28continuing. And then there's also people
1:28:30who say hey when this uptrend continues
1:28:33or if this uptrend continues and we push
1:28:35above this high I'm going to press buy.
1:28:37So, there's two sets of buy orders above
1:28:40highs.
1:28:42There's also two sets of sell orders
1:28:45underneath lows. There are people that
1:28:50Let me get rid of this. Get rid of this.
1:28:52Get rid of this. Get rid of this. Get
1:28:54rid of this. Get rid of this. Oops. Get
1:28:57rid of this. Get rid of this. Get rid of
1:28:59this. There are two sets of sell orders
1:29:02underneath lows.
1:29:04So let's say for example right here
1:29:08there are people that are pressing buy
1:29:11on this move up. Okay the people that
1:29:15are pressing buy on this move up where
1:29:16are their stop losses? Their stop losses
1:29:19are underneath this low. Now what
1:29:21happens
1:29:23when the market pushes underneath this
1:29:25low? The people that were in buy
1:29:27positions they get stopped out. So they
1:29:29have to sell their position for a loss.
1:29:32So all the people pressing buy on this
1:29:34move up when the market comes down and
1:29:36hits that area, they are getting stopped
1:29:38out of their trade and they are being
1:29:40forced to sell their positions back for
1:29:43a loss. There are also traders that when
1:29:46this low gets pushed underneath that are
1:29:49entering into short positions because
1:29:51they think price is going to go lower.
1:29:53So there's two sets of resting orders
1:29:56underneath lows. Now again, you are
1:29:59probably asking, TJR, why why why why
1:30:04are you telling me all of this stuff?
1:30:06This is how the retail trader thinks.
1:30:09And what do we know about the vast
1:30:11majority of traders? 99% of traders
1:30:13fail. And I'm not trying to tell you
1:30:14guys this. I mean, we talked about this
1:30:15on day one. I'm not I'm not trying to
1:30:17tell you guys this to discourage you.
1:30:18I'm telling you guys this to use this to
1:30:21your advantage.
1:30:23We need to be thinking about We need to
1:30:25be thinking like the market movers. We
1:30:26need to be thinking like smart money. So
1:30:29if we understand that there are two sets
1:30:32of sell orders underneath lows and there
1:30:34are two sets of buy orders above highs,
1:30:38we don't want to be following the method
1:30:40of pressing buy when highs get pushed
1:30:42above or pressing sell when lows get
1:30:45pushed underneath
1:30:48because that is how retail traders are
1:30:50trading. That's how the vast majority of
1:30:52traders are trading. We want to be
1:30:54trading in the opposite direction. And
1:30:58this is how the market makers think.
1:30:59Going back to our topic for today's
1:31:01video, what is liquidity? Liquidity is
1:31:04resting orders.
1:31:06We just talked about where retail
1:31:08traders resting orders are. Now, let's
1:31:12think about smart money and let's think
1:31:15about the market makers. The people who
1:31:17actually move the market. They need a
1:31:21significant amount of orders to be going
1:31:24in the opposite direction of them for
1:31:28their massive amounts of orders to be
1:31:30filled for them to be able to push the
1:31:31market in the direction that they want
1:31:33to go. You're probably saying, "What
1:31:34does that even mean?" Let me explain.
1:31:37Let's think back to our high school
1:31:40economics class. Okay? How does a stock
1:31:43exchange work? If I want to buy one
1:31:46share of Apple stock, we I need to find
1:31:50somebody that is willing to sell me a
1:31:53share of their Apple stock at the
1:31:54current price. Now, back in the day, it
1:31:58used to be done by calling up your
1:31:59broker saying, "Hey, I want to buy one
1:32:01share of Apple." They say, "Okay, I'm
1:32:03going to try and source source this for
1:32:05you. I need to find somebody that's
1:32:06willing to sell this sell it to you at
1:32:08this price nowadays." And then boom,
1:32:11they sell it to you. takes a couple days
1:32:13and they say, "Boom, here's your
1:32:14paperwork." They ship it to you in the
1:32:15mail and then awesome. You have your
1:32:17contract that says, "I own one share of
1:32:18Apple at this price." Cool.
1:32:21The the same thing applies, but in
1:32:24today's day and age, we have brokerages,
1:32:26we have exchanges that do this at mass
1:32:28scale online for us. It's the same exact
1:32:31thing. When these big smart money market
1:32:35movers are trying to place their trades
1:32:38and move the market, they need x amount
1:32:42of orders. Like, let's say freaking
1:32:45uh 1,000 orders to be going in the
1:32:49opposite direction for people. They need
1:32:521,000 people. Let's say they want to
1:32:53take a 1,000 contract trade. Sorry,
1:32:55we'll simplify this. Let's say they want
1:32:57to take a 1,00 contract trade. In order
1:32:59for them to be filled on those thousand
1:33:00contracts, there needs to be 1,000
1:33:03contracts that are willing to either buy
1:33:05or sell depending on what direction they
1:33:08want to move the market in the opposite
1:33:09direction as them. So, if the market
1:33:11movers, market makers want to push the
1:33:14market down and they want to fill 1,000
1:33:18contracts, they need 1,000 contracts in
1:33:21the opposite direction. And this is
1:33:23where liquidity comes in. They will
1:33:26manipulate price and push price above
1:33:29highs in the market to do what? To
1:33:33activate and get
1:33:36those two sets of resting buy orders to
1:33:39get activated, right? The people that
1:33:40that that were pressing sell on the way
1:33:43down, what do they have? They have their
1:33:45stop losses above here. And then once
1:33:48price pushes above this this this high,
1:33:51those people get stopped out of their
1:33:53sell positions.
1:33:54And then also the people that think
1:33:56price is going to go higher, they enter
1:33:58into buy positions. So now there's a
1:34:01bunch of people that are willing to go
1:34:04long or press buy in the market. What
1:34:07does that give the market makers the
1:34:09opportunity to do
1:34:11to fill their massive amounts of sell
1:34:13orders to cause the market to go down?
1:34:16Reverse psychology is how I like to
1:34:18think of liquidity. They are faking
1:34:21retail traders out to think that the
1:34:24market's going to go higher. They are
1:34:26getting people out of sell positions by
1:34:29pushing above the high and they're
1:34:30getting people into buy positions and
1:34:32then they're able to fill their massive
1:34:34amounts of sell orders because there's a
1:34:36massive amount of people that are
1:34:37willing to go buy here or being forced
1:34:39to buy their positions back for a loss
1:34:42and then they are able to fill their
1:34:43sell orders to push the market lower.
1:34:48Same thing in the opposite direction. If
1:34:50we have a low, what is sitting
1:34:52underneath lows? A massive amount of
1:34:54sell orders because there's people that
1:34:57are pressing buy because they think this
1:35:00move is going to go higher. Where are
1:35:01their stop losses? Underneath these lows
1:35:03and then when the market comes down,
1:35:06trades underneath these lows. What
1:35:08happens? Those people that were in buy
1:35:09positions have to are forced to sell
1:35:12their positions back at a loss. And then
1:35:15there's the people that are entering
1:35:17into sell positions because they're
1:35:19saying, "Hey, a downtrend has started."
1:35:22What does that give the market makers
1:35:23the opportunity to do? Fill their
1:35:26massive amount of buy orders. Why?
1:35:27Because there's a massive amount of
1:35:29people that are entering into sells
1:35:30here. And then that gives them the
1:35:32opportunity to push the market higher.
1:35:34We do not want to think like retail
1:35:36traders. We want to think like smart
1:35:38money traders. We want to think like the
1:35:40market makers. That is why liquidity is
1:35:42so very important. And we're going to go
1:35:44onto the charts now and show you guys in
1:35:46real time examples of this happening.
1:35:47I'm not going to tell you guys how to
1:35:48take trades on this just yet. We're
1:35:50going to get into that later later on in
1:35:52this series. But this is the most
1:35:54crucial and the most important lesson
1:35:56that you guys are going to learn in
1:35:58trading. There are sell orders that are
1:36:01sitting underneath lows. Does that mean
1:36:03we want to press sell? No. It means we
1:36:05actually want to be looking in the
1:36:07opposite direction because there's a
1:36:09massive amount of sell orders sitting
1:36:10underneath lows. What does that give the
1:36:12market makers the opportunity to do?
1:36:14Fill their massive amounts of buy orders
1:36:16underneath those lows because retail
1:36:18traders are pressing sell and that lets
1:36:21the market makers press buy to be able
1:36:24to fill their massive orders and change
1:36:25the direction of price. With that being
1:36:27said, let's show realtime examples of
1:36:30this happening. We have one right here.
1:36:32What do we have right here? A high in
1:36:34the market. All the people that were
1:36:36pressing sell on this move down, their
1:36:38stop loss is above these highs. Once
1:36:41these highs get pushed above right here,
1:36:44what happens? The people that were
1:36:46pressing sell get stopped out of their
1:36:48sell positions. And then all the people
1:36:51that think market's going to move
1:36:52higher, what do they end up doing? They
1:36:55end up pressing buy because they say,
1:36:56"Hey, a new trend is going to start."
1:36:58What does that give the market makers
1:37:00the opportunity to do? fill their
1:37:02massive amounts of sell orders to push
1:37:04price lower. This happens on every
1:37:06single time frame because this is how
1:37:08the market moves. The market needs
1:37:10orders to be filled. The market needs
1:37:13orders to be filled in order to push
1:37:15price in the direction that it wants to
1:37:16go. Let's show another example right
1:37:19here. Price comes down. Okay, so we just
1:37:21showed you guys an example to the
1:37:23upside. Now we'll show you guys an
1:37:24example to the downside. Price comes
1:37:26down underneath these lows. What do we
1:37:28know is resting underneath lows in the
1:37:30market? a bunch of sell orders. What
1:37:31does that give the market makers the
1:37:33opportunity to do? It gives them the
1:37:35opportunity to fill their massive
1:37:36amounts of buy orders. So when price
1:37:39comes down, what happens? All the people
1:37:41that were pressing by throughout this,
1:37:43they are getting stopped out of their
1:37:44positions. Their stop losses are
1:37:46underneath these lows. And then all the
1:37:49people that think price is going to go
1:37:50lower, they are entering into sell
1:37:52positions right here. What does that
1:37:53give the market makers the opportunity
1:37:55to do? Fill their massive amounts of buy
1:37:57orders to push price higher. Hopefully
1:37:59you guys are starting to get this. Now,
1:38:02let's show another example.
1:38:05We have a high right here. We have two
1:38:09sets of highs. And this is what we're
1:38:10going to get into for our advanced
1:38:12liquidity concepts,
1:38:14but we have a bunch of low resistance
1:38:19draws and liquidity stacked up relative
1:38:21equal highs.
1:38:24We'll get into this in tomorrow's video,
1:38:26but stacked up relative equal highs
1:38:28right here.
1:38:30What is that making the people do when
1:38:32we push above this high? What are people
1:38:34doing? They're pressing buy. When we
1:38:35push above this high, what are people
1:38:36doing? They're pressing buy. Everybody
1:38:38that was pressing sell, where is their
1:38:39stop losses? Above this high. Everybody
1:38:41that was pressing sell, where is their
1:38:42stop losses? Above this high. So now we
1:38:45have four times the amount of orders. We
1:38:48have four times the amount of orders,
1:38:50buy orders that are sitting above these
1:38:52highs in the market. What does that give
1:38:54the market makers the opportunity to do?
1:38:57Fill their sell orders above these
1:38:59highs. So the so the market makers push
1:39:02price up, manipulate these highs, enter
1:39:05their sell orders, and then what does
1:39:07the market do? It falls. This happens on
1:39:10every single time frame. I can show you
1:39:11guys examples of liquidity sweeps on the
1:39:135minut time frame, on the 15-minut time
1:39:15frame, on the 1 hour time frame, on the
1:39:17weekly time frame, on the quarterly time
1:39:20frame. There are examples of liquidity
1:39:22sweeps everywhere. You remember the
1:39:25tariff flash crash. Super spooky. Oh my
1:39:29goodness, there's tariffs in the market.
1:39:32All that it was was buying opportunity.
1:39:34We have a low. We have a low. We have a
1:39:37low. Sell positions. Sell positions.
1:39:39Sell positions. What does that give the
1:39:41market makers the opportunity to do?
1:39:42Fill their massive amounts of buy
1:39:44positions to make the rich get richer.
1:39:46You guys remember what happened?
1:39:48February 2020, that very, very scary,
1:39:51scary sickness that went around.
1:39:54This is on the monthly time frame,
1:39:56folks. This is how the rich continue
1:39:58getting richer through market
1:39:59manipulation,
1:40:01through scaring the population with one
1:40:05agenda in mind to make themselves
1:40:07richer. Oh no, super scary sickness.
1:40:10Psyche. Liquidity sweep. All the people
1:40:12that were buying right here entering
1:40:14sell positions. All the people that were
1:40:15buying right here forced to sell their
1:40:17orders because their stop losses are
1:40:19underneath these high time frame lows.
1:40:21Oh no, the economy is going to collapse.
1:40:24All of you guys should All of you guys
1:40:25should sell everything. All of you guys
1:40:27should short everything. Psych. What
1:40:29does that give the market makers the
1:40:31opportunity to do? Fill their massive
1:40:33amount of buy orders and make the rich
1:40:34get richer.
1:40:36It happens on every single time frame.
1:40:38This is how the market moves. 15-minute
1:40:40time frame. What do we do? Push above a
1:40:43high. Boom. Market collapses. Let's go
1:40:46to the 5minut.
1:40:50Push above this high. Market collapses.
1:40:54Now, before we end this video, I don't
1:40:56want you guys to just think, okay,
1:40:59whenever we push above a high, I'm going
1:41:01to press sell. And whenever we push
1:41:03below a low, I'm going to press buy.
1:41:06That is not what I want you guys to take
1:41:08away from this video because
1:41:11we just we just demonstrated in
1:41:13yesterday's video that the market moves
1:41:16in trends. The market does move in
1:41:17higher highs and higher lows. So trends
1:41:19happen,
1:41:20but liquidity and liquidity getting
1:41:24swept and new trends being formed that
1:41:28that's how new trends are formed. Okay?
1:41:30through liquidity getting swept, okay,
1:41:32and by these orders getting filled. So,
1:41:34if you guys think back to like kind of
1:41:36halfway through this video, there is
1:41:38something that I said and a word that I
1:41:40want you guys to keep in mind. When we
1:41:42push a above a high and when we push
1:41:45below a low, it doesn't mean that the
1:41:47market makers are instantly going to
1:41:50reverse price just because there's buy
1:41:53and sell orders there. Right? We can see
1:41:55here that, okay, we have a high, we push
1:41:58underneath a low here. Would that have
1:42:00been smart to press buy? No. We end up
1:42:02keep going lower. We push below this
1:42:04low. Would that have been a good spot to
1:42:06press buy? No. We keep going lower. We
1:42:08push underneath this low. Would that
1:42:10have been a good time to press buy?
1:42:12Eventually, yes. So, what I want to end
1:42:15this video on is a very, very key
1:42:17component of liquidity. Liquidity lies
1:42:19above highs and below lows. All that
1:42:22liquidity does for the market makers is
1:42:25it gives the market makers the
1:42:27opportunity to change the trend. Okay?
1:42:30It doesn't mean that the trend is going
1:42:32to change every single time. It just
1:42:34gives the market makers the opportunity
1:42:36to change the trend above highs and
1:42:38below lows. Now, us understanding that
1:42:42above highs and below lows there is an
1:42:44opportunity for us to change the trend.
1:42:47That is the first step of our strategy.
1:42:50Because if we can focus on catching the
1:42:53bottoms of reversals up, we are going to
1:42:56be able to make so much more money. And
1:42:58if we can focus on catching the tops of
1:43:00reversals down, we are going to make so
1:43:02much more money. Now, again, pressing
1:43:05buy below lows and just pressing sell
1:43:09once we get above highs is not a good
1:43:11strategy. I could show you guys a
1:43:13million reasons why, but you guys are
1:43:16going to have to trust me on this
1:43:17because again, like if we look if we if
1:43:19we were to press sell when we pushed
1:43:20above this high, what would have
1:43:21happened? Okay, we we lose a whole bunch
1:43:24of money. If we press sell when we push
1:43:26above this high, what would happen? We
1:43:28lose a bunch of money. If we press sell
1:43:30when we push above this high, what would
1:43:32happen? Well, we lose a bunch of money.
1:43:34If we press sell when we push above this
1:43:35high, what happens? We actually are able
1:43:38to make money. But notice how there was
1:43:40an opportunity for price to reverse
1:43:42here. Did it happen? No. There was an
1:43:44opportunity for price to reverse here.
1:43:46Did it happen? No. There was an
1:43:47opportunity for price to reverse here.
1:43:49Did it happen? Yes. So, all that I want
1:43:51you guys to take away from today's video
1:43:54is just understanding orders
1:43:57lie and resting orders lie above highs
1:43:59and below lows in the market. We are
1:44:01going to get into later in this series
1:44:04of how to take advantage of the
1:44:07opportunity of understanding that orders
1:44:11are lying above highs and below lows in
1:44:13the market and then how to identify
1:44:15other confluences to give us
1:44:17confirmation that orders are actually
1:44:20being filled on the market maker side
1:44:22and the trend is reversing. That's what
1:44:24we're going to get into later on in the
1:44:26series. So what I want from you guys,
1:44:29your homework for today is to identify
1:44:32again I there I don't want you guys to
1:44:35be trying to understand the reasoning of
1:44:37why did price reverse above this high
1:44:39and not above this high. We're going to
1:44:41get into that later in this series. What
1:44:44I want what I want you guys to
1:44:45understand is understanding okay we know
1:44:50that price has the opportunity to
1:44:51reverse above highs and below lows. Your
1:44:53homework is to just give find five
1:44:56examples of price pushing above a high
1:44:59and then reversing off of it, pushing
1:45:00underneath a low and then reversing off
1:45:02of it. Very, very simple stuff. And then
1:45:05in tomorrow's video, we are going to get
1:45:07into advanced liquidity concepts. So,
1:45:10expanding more on this. So, that being
1:45:12said, love and appreciate you guys. Do
1:45:13your freaking homework. I'll see you
1:45:14guys tomorrow. Now that we've covered
1:45:16kind of just the base fundamentals, it's
1:45:18time to get into the actual concepts
1:45:20that build up my strategy and how we
1:45:22actually start making money from these
1:45:23charts. So, these are concepts that took
1:45:25me years to master. It's very easy to
1:45:28understand, but it takes a long time to
1:45:30actually fully process how they work
1:45:32together. So, I highly recommend you
1:45:34guys get a nice little notebook out. You
1:45:37guys start taking notes because this is
1:45:38when [ __ ] gets serious when you guys can
1:45:40maybe lose track a little bit. you're
1:45:42thinking, "Oh, the basics, that's just
1:45:44absolute beginner stuff. I don't really
1:45:46need to focus." If you guys weren't
1:45:47focusing then, then hopefully you guys
1:45:49start focusing now because these
1:45:50concepts are how the market moves and
1:45:52it's [music] literally the key to my
1:45:55probability within the markets. And if
1:45:57you guys have been enjoying this video
1:45:58so far, I really appreciate that. If you
1:46:00guys have any questions, I do offer
1:46:03one-on-one mentorship where you guys can
1:46:05ask me direct questions and get on
1:46:07coaching calls with profitable coaches
1:46:09and myself. If you that sounds
1:46:10interesting to you, there's going to be
1:46:12a link down in the description. But if
1:46:13you guys are just enjoying the free
1:46:15information, we can keep it moving.
1:46:25Somebody clip this.
1:46:28Somebody clip this into an edit.
1:46:30Somebody clip this into an into a hard
1:46:32ass edit of like me being like tough and
1:46:34then
1:46:48Boom. Conig at 23. Ferrari at 22.
1:46:54Widebody Mansory Colon in 22 years old.
1:46:57Bravis GLE 21 years old. Oh, [screaming]
1:47:02welcome to exploited liquidity advanced
1:47:06concepts.
1:47:08Cue up the edits. Cue them up, boys. We
1:47:11learned about liquidity. Let's learn
1:47:14more about advanced liquidity concepts
1:47:18again today. Okay. So, there's one, two,
1:47:23three, four, five, six, seven um forms
1:47:26of advanced draws on liquidity. Okay? Or
1:47:31just overall better draws on liquidity
1:47:34that we can look to target. So, as we
1:47:36know, little refresher, what did we
1:47:37learn yesterday? Where does liquidity
1:47:39lie? Above highs, below lows? I'm going
1:47:41to suck on your toes. Now, in today's
1:47:45episode, we're going to talk about just
1:47:48higher probability draws on liquidity
1:47:50that are more more beneficial to us than
1:47:55not. That was nice to be able to help
1:47:58us, okay, identify the stronger draws of
1:48:02liquidity than just like, oh, this is a
1:48:04high, this is a low, price could
1:48:05potentially move off of this. Okay, so
1:48:08the first one is going to be session
1:48:10highs and session lows. Okay, so how do
1:48:14we identify these this or first of all,
1:48:17what are session highs and session lows?
1:48:18So if you guys are unfamiliar with this,
1:48:20we're going to get into this a little
1:48:22bit more when we talk about time in the
1:48:24market, but specifically today we're
1:48:26going to be talking about sessions.
1:48:28Okay, there's three sessions throughout
1:48:31the 24hour trading day. There is Asia
1:48:35session, there is London session, and
1:48:37there's New York session. And then
1:48:38within New York session, there's AM
1:48:40session and PM session. Today, we're
1:48:42just going to focus on the three
1:48:44sessions and why those sessions are
1:48:46important. So, something that I want you
1:48:48guys to think about for every single
1:48:50session, okay, we have Asian session,
1:48:53okay? All the Ching Chongs, they're
1:48:55getting in there and they're like,
1:48:58okay, when Asia session opens, they got
1:49:00their freaking they're it's Japanese
1:49:02candlesticks, right? They're [ __ ]
1:49:04turned up ramen noodle, all that. Sorry
1:49:06if that was disrespectful. You guys get
1:49:08the point. But when Asia session opens,
1:49:10all the Asians, boom, it's their market.
1:49:14They're ready to run with it. Okay? So,
1:49:16all of the Asians are moving the market
1:49:19at that point in time. And then boom,
1:49:21Asian session closes. Then all the
1:49:24London, I'm a London British chat, mate.
1:49:27And I'm going to beat you off. I'm gonna
1:49:29[ __ ] I'm gonna beat off you like a
1:49:32wanker, mate. I'm gonna beat you. And
1:49:34I'm from Brixton, okay?
1:49:37All the Brixton bullies. They get into
1:49:40the market and they're like, "Man, [ __ ]
1:49:42the Ching Chang Chongs, okay? We want to
1:49:45take all of their orders. [ __ ] them. And
1:49:49we want to move the market where we want
1:49:50to go." So Ching Changs, they get into
1:49:53the market. They move the market where
1:49:55they want to go. Brixton bullies. They
1:49:57get into the market. Their money comes
1:49:59into the market. Moves the market where
1:50:00they want to go. Then boom, bald eagle
1:50:03screech. USA, New York session opens.
1:50:06All the big fat guys on Wall Street
1:50:08eating McDonald's. Boom. They're
1:50:10pressing buttons. Their money comes into
1:50:12the market. Why is this important? Why
1:50:14is it important for us to know about
1:50:16Genangghask Con, Central C, and the fat
1:50:20ass Americans? Why is this important?
1:50:22because it's every single time there's
1:50:24new money from different markets coming
1:50:27into the market and moving it. Okay, so
1:50:30we talked about the market makers
1:50:31yesterday. We have Asian persuasion
1:50:34market makers, we have central sea
1:50:37market makers and we have obesity market
1:50:39makers. Okay, each one of those market
1:50:42makers, they have their own session
1:50:43where their money is putting getting put
1:50:45into the market and they are going to
1:50:47manipulate the market in the way that
1:50:48they want to. Now again, why is this
1:50:51important? What did we learn yesterday?
1:50:53This
1:50:55is let's say this is Asian session.
1:50:58Okay, we'll make
1:51:00this is Asian session. Boom. Asian
1:51:03session does this bow. Boom. This is
1:51:06Asian session. We'll make the line
1:51:08yellow just so you guys understand it a
1:51:09little bit better
1:51:11for no reason. Okay. Um, so this is
1:51:14Asian session.
1:51:16Bing Bang and Ching Chang, they push the
1:51:20market up to these highs. Okay.
1:51:24Sing Long and Ching Chong push the
1:51:26market down to these lows.
1:51:30Okay. Then boom,
1:51:34Central C comes into the market. We'll
1:51:36make him blue. Central C comes into the
1:51:40market. What What are the London traders
1:51:42going to try and do to the Asian session
1:51:44traders? Because right now Asian the
1:51:46Asian session traders, they're
1:51:48controlling the market. They're moving
1:51:48the market where where they want to go.
1:51:51So when the bricks and bullies get into
1:51:54the market, what do they have to do to
1:51:56all the Asia Asia session traders in
1:51:59order to move the market in the in the
1:52:00way that they want to move? They need to
1:52:02stop out the Asian session traders. They
1:52:04need to manipulate whatever trend or
1:52:07whatever highs and lows. They need to
1:52:08take out draws and liquidity from what
1:52:10was formed during Asian session to be
1:52:12able to move the market where they want
1:52:14to go. So coming into London session, if
1:52:17central C wants the market to move
1:52:19higher, what is central going C big big
1:52:23c going to do to the market? He's going
1:52:25to push price underneath the Asia
1:52:28session lows. Why? Because that's
1:52:30probably where there's going to be
1:52:32people that are willing to go short.
1:52:33There's people that are getting stopped
1:52:34out of their their buy positions right
1:52:36there. Boom. Central C is going to stop
1:52:38out the Asia session traders underneath
1:52:40Asia session low and then they are going
1:52:43to go up and target Asia session highs
1:52:46because the London traders they don't
1:52:47want they they want to manipulate
1:52:49everything that happened during Asia
1:52:51session. Okay, they want to be able to
1:52:53fill their orders down here underneath
1:52:54the Asian session lows so they can stop
1:52:56them out of their of their buy orders,
1:52:59right? And then also get people into
1:53:00sell orders. And then what do they do
1:53:02following that? Once they're able to
1:53:04fill all their buy orders underneath
1:53:05here, they're going to push price up to
1:53:07be able to take out boom,
1:53:10fulfill all of their buy orders, also
1:53:13stop out all the people that were going
1:53:14sell that were selling on this move
1:53:16down. Again, remember there's going to
1:53:18be two times the amount of buy orders
1:53:19above highs. And when Central C pushes
1:53:22the market above these highs, what are
1:53:24they able to do with the orders that
1:53:27they filled down here? They're able to
1:53:28liquidate those orders because again
1:53:30they're buying down here and then
1:53:32they're selling up here. What are they
1:53:34selling into? They're selling into the
1:53:36Asian Persuasion Chinatown traders stop
1:53:39losses up here. Boom. Game is game. You
1:53:44just got cooked by Central C. Now we got
1:53:47obesity coming into the market now.
1:53:49Obesity time. Bang. New York session
1:53:52opens. Okay, we'll make obesity.
1:53:57We'll make obesity red. Boom. Now we
1:54:00have London session lows down here,
1:54:02London session highs right here. When
1:54:04obesity comes into the market, they're
1:54:05thinking, "Man, I rock with King Vaughn.
1:54:09I rock with Pop Smoke, Travis Scott.
1:54:12[ __ ] Central C." Okay, obesity comes
1:54:15into the market and they're like, "Man,
1:54:17I want to stop this dude out. I don't
1:54:19like their orders. I want to fill my
1:54:21orders and I want to make price move
1:54:22where I want to go." Okay, so what are
1:54:25they going to do? They're going to push
1:54:26price above London session highs and
1:54:29then they're going to fill their sell
1:54:31orders to push price down boom to London
1:54:35session lows because they're going to
1:54:37fill a bunch of sell orders up here
1:54:39while all the London traders get stopped
1:54:40out and enter into buy positions and
1:54:42then boom, New York gets to buy back
1:54:45their sell positions for a lower price
1:54:48and then make money on their short
1:54:49positions.
1:54:52You're probably saying, "TJR,
1:54:55that was that was a whole bunch of mumbo
1:54:57jumbo."
1:54:59You're right. It was. But what did I
1:55:01just showed you? I just showed you where
1:55:03significant draws and liquidity lie
1:55:04within within the market.
1:55:07Woo! Central Sea, Chinatown, and
1:55:11obesity. How does that play into
1:55:13trading? It's everything. Okay.
1:55:18Not only is your homework going to be to
1:55:20go get ramen noodle from Panda Express
1:55:22while listening to Central C, you also
1:55:24need to get a big Big Big Mac. Okay,
1:55:26that's part of the homework. Remember
1:55:27it. Okay.
1:55:31Asia session highs, Asia session lows,
1:55:33London session highs,
1:55:36London session highs, London session
1:55:37lows, New York highs, New York lows. All
1:55:39of these are significant draws in
1:55:42liquidity that when new sessions start
1:55:46and end, the new money that's coming
1:55:48into the market is going to want to
1:55:50target these session highs and the
1:55:52session lows because there's a
1:55:54significant amount of resting orders
1:55:56above and below them. So, let's show it
1:55:59on the chart. You're probably saying, "I
1:56:02don't get it." Shut up, Timmy. We'll
1:56:04show it to you. Okay.
1:56:07I have this nice little indicator. Um,
1:56:10it does the [ __ ] for me. I'll put a I'll
1:56:12put a link to it in the description, but
1:56:16Asia session high, Asia session low,
1:56:18London session high, London session low,
1:56:21New York high, New York low, and then
1:56:22the session start line indicator is with
1:56:26red. Just to make this easy for you
1:56:28guys, I'm going to remove all of these
1:56:30lines.
1:56:35And we're only going to put the session
1:56:37starts on. Okay,
1:56:40just so we can actively show this
1:56:43happening in real time.
1:56:47So first of all, what are the number
1:56:51values? Again, remember when we set up,
1:56:53this was something that is super
1:56:54important. Remember when we set up our
1:56:56trading view, we need to make sure that
1:56:59we are on Eastern time. Okay, we need to
1:57:02make sure that we're on New York time.
1:57:04All right. So, boom. We're on New York
1:57:06time. What are the session times? Asia
1:57:09session starts at 1,800.
1:57:11London session starts at 3:00 a.m.
1:57:17New York sess New York session starts at
1:57:199:30
1:57:22and New York premarket starts at 8:30.
1:57:26So, we can kind of group both of these
1:57:28together.
1:57:30Let's get in here and let's look at
1:57:32this.
1:57:34Okay.
1:57:38Where is London session high? Well, from
1:57:403 to 8:30. Where's the highest point
1:57:43that we got to? Boom. Right here.
1:57:47Where's Asian session high?
1:57:50From 1,800 to 3. The highest point that
1:57:52we got to was up here. Where is Asian
1:57:55session low?
1:57:57From 1,800 to three. Where is the lowest
1:57:59point that we got to? Right here. Where
1:58:01is London session low? From 3 to 8:30.
1:58:04Where's the lowest point we got to?
1:58:06Right here.
1:58:08Notice
1:58:10the manipulation from Central C.
1:58:14Asia session high. Asia session. Asia
1:58:17session low.
1:58:19Boom. Right when London session opens,
1:58:22what does Central C say? He says, "Fuck
1:58:25you and your [ __ ] you and your [ __ ]
1:58:27lows, mate.
1:58:30What's a Central C song? I got a bando
1:58:33in the trap, mate. Boom.
1:58:37Moves and manipulate these lows to be
1:58:40able to fill Central C's buy orders
1:58:43right here. Then Central C says, "Thanks
1:58:47for the liquidity."
1:58:49And then bang, [clears throat] what do
1:58:52we go up and do? Take out Asia session
1:58:55highs.
1:58:58Shout out Central C.
1:59:00Manipulate the Asia session lows. Bang.
1:59:03Right up into Asia session highs. And
1:59:04then boom. Right when we take out the
1:59:07Asia session highs, who comes into the
1:59:09market? Big Daddy Obesity.
1:59:15Obesity comes into the market and says,
1:59:18"Hey, Central C. Hey Asians.
1:59:22[ __ ] you [screaming] guys." Boom. Thanks
1:59:26for the liquidity. I'm taking out both
1:59:29of your guys' highs.
1:59:31While all of you guys are going long and
1:59:33getting stopped out of your orders, I'm
1:59:35pressing sell. And then what does the
1:59:37big fatty get to do? Target central sees
1:59:40lows. Bang. [screaming]
1:59:45And that is how money shifts from
1:59:50session to session. Okay? It doesn't
1:59:52happen every single day. And matter of
1:59:54fact, I just chose this day at random.
1:59:56This was beautiful. This was honestly
1:59:58beautiful. This was literally New Year's
2:00:00Eve when the market's actually not
2:00:02printing that well, but this was
2:00:04gorgeous. Okay,
2:00:07let's do another example to show you
2:00:09guys this happening. Now, again, doesn't
2:00:11have to happen every single session,
2:00:13okay? But these are very important highs
2:00:17and lows in the market. And again, what
2:00:20do we know about the highs and lows
2:00:21within the market? What did we talk
2:00:22about yesterday? It is just giving the
2:00:25market the opportunity to potentially
2:00:28reverse. So just because we push up
2:00:31above central seas highs doesn't mean
2:00:33that the market needs to reverse off of
2:00:35it. The market has the opportunity to.
2:00:38Again, we haven't gotten into the other
2:00:41confluences to be able to spot
2:00:43confirmation of these opportunities
2:00:45actually being taken for us to be able
2:00:48to take trades off of them. We will
2:00:49eventually, okay? But we need to
2:00:52understand these advanced liquidity
2:00:53concepts. Specifically, understanding
2:00:56the high probability highs and lows that
2:00:59give us more opportunity than just, hey,
2:01:01this is a random high on on the chart.
2:01:03This is a random low on the chart. I'm
2:01:05going to mark it out and hope for the
2:01:06best. Okay, very important that we
2:01:09understand that. Let's do another
2:01:11example. Okay, let's see. What's this?
2:01:141,800. This is Asian persuasion high.
2:01:18Boom. Three. This is Central C when he
2:01:23comes into the market.
2:01:25Boom. This is 8:30. This is New York
2:01:26premarket. And then boom, this is 9:30.
2:01:29This is New York market open.
2:01:32Where is Asian Persuasion high?
2:01:35Right here. Where's the lowest point
2:01:37that Asian Persuasion gets? Right here.
2:01:40Oh my days. Look at what Central C. Look
2:01:42at Central C. Look at Central C. He does
2:01:45not like the A. Okay. No, I'm not going
2:01:47to say that. I'm not going to say that.
2:01:49>> [clears throat]
2:01:49>> I'm not gonna say that.
2:01:51So, I like Central C. Central Sea is
2:01:53cool. Um, but anyways,
2:01:58are are you seeing it? Are you seeing
2:02:00it? Okay. Asian persuasion high, Asian
2:02:02persuasion low, Central Sea low,
2:02:07Central Sea high, or no, this is Central
2:02:10Sea High.
2:02:12Boom. Asian high. Asian low. Central Sea
2:02:15comes into the market. Boom. [ __ ] your
2:02:18lows. What does that give Central C the
2:02:20opportunity to do? Fill his buy orders.
2:02:24Once those buy orders are filled, where
2:02:26is he going to push the market? He's
2:02:28going to want to push the market to be
2:02:30able to exit these buy orders. Where is
2:02:32he going to be able to exit his buy
2:02:33orders and be able to sell? Where
2:02:35there's resting buy orders for him to
2:02:36fill his sell positions because he
2:02:38bought low and he's looking to sell
2:02:39high. Where are their buy orders? Above
2:02:42Asian persuasion highs. There's sell
2:02:44orders underneath Asian persuasion lows.
2:02:47Central C is going to buy here because
2:02:49there's a lot of sell orders. So, he can
2:02:50go in the opposite direction.
2:02:53And then where where is he looking to
2:02:55offload those orders at? Above Asian
2:02:57Persuasion highs because he knows that
2:02:59there there's there's going to be a lot
2:03:00of people going long there. So, he buys
2:03:02low, sells high, fills his buy orders,
2:03:05and then where does he immediately
2:03:06target? Boom. Asian persuasion highs
2:03:09right there. Central C enter, Central C
2:03:12exit. And then right when that happens,
2:03:14what do we notice? Boom. New York
2:03:16pre-market opens.
2:03:18What does New York premarket do? Says,
2:03:22"Thank you very much for Central Seas
2:03:24highs. Thank you very much, Asian
2:03:26persuasion highs.
2:03:28Time to manipulate you fools."
2:03:31Boom. What does that give New York
2:03:33traders the opportunity to do? The obese
2:03:36guys, they can go short above these
2:03:38highs. Why? Because there's a whole
2:03:39bunch of people going long. So they can
2:03:41take the reversal of that position and
2:03:43then where do they go? They say boom.
2:03:46Thank you Central C for the lows that
2:03:48you made.
2:03:55Are you not getting hyped up about this
2:03:57[ __ ]
2:03:59It's day
2:04:01What day is it on um this path to
2:04:04profitability? I don't know. But it's
2:04:06day something and you guys are learning
2:04:08a lot.
2:04:11Okay,
2:04:14you guys seeing this? This is
2:04:16manipulation. So, what do we need to
2:04:19remember?
2:04:21Important highs and lows within the
2:04:23market. Asia session highs are
2:04:25important. Why? Because when new money
2:04:27comes into the market, what is it going
2:04:29to want to do? When central C comes into
2:04:31the market, what is he going to want to
2:04:32do? He's going to want to manipulate
2:04:34those highs and then push price in the
2:04:35other direction. Why are Asian session
2:04:37lows important? Because when Central C
2:04:39comes into the market, he has the
2:04:41opportunity to push underneath those
2:04:44Asia session lows to fill his buy
2:04:46orders. When the big fat obese people
2:04:49come into the market,
2:04:51what are they looking at? They're saying
2:04:53Central C, your highs and your lows,
2:04:56they're mine. Okay, what does that give
2:04:58the obese people the opportunity to do?
2:05:01push price, manipulate price above
2:05:03central C's highs and then to be able to
2:05:05target central C's lows
2:05:08or the other direction the obese people
2:05:10can come into the market market
2:05:13manipulate central C's lows and then
2:05:15target central C's highs all in all
2:05:17session highs and lows are very
2:05:19important highs and lows within the
2:05:20market
2:05:23so again remember these numbers 1,800
2:05:27Asian persuasion to three
2:05:301800 to 3 is Asia session. 3 to 8:30
2:05:34London session.
2:05:368:30
2:05:37back to 1800
2:05:41is New York session.
2:05:45So this is Asian. Boom. London. Boom.
2:05:49New York. Boom. And that encapsulates a
2:05:52full day of trading.
2:05:55All right.
2:06:02pre so session highs and lows that's
2:06:04important. Next draws and liquidity that
2:06:06are important previous day highs and
2:06:08previous day lows. Now this is the same
2:06:12exact thing but just all of those
2:06:14sessions encapsulated into one. Okay. So
2:06:17instead of looking at, okay, Asian
2:06:20persuasion highs, Asian persuasion lows,
2:06:22Central Ca highs, Central Ca lows, fat
2:06:24person's highs, fat person lows, we're
2:06:26looking at all of those
2:06:29sessions combined, finding the highest
2:06:32point and the lowest point of all three
2:06:34of those sessions combined. And that's
2:06:36going to give us our daily highs and our
2:06:38daily lows. These are important draws on
2:06:40liquidity as well. Okay.
2:06:44So, if we go back,
2:06:46let's find a good example of this
2:06:49on the daily chart. We have boom,
2:06:52previous day high,
2:06:54previous day low.
2:06:57Okay, this was the previous day high.
2:07:00This was the previous day low. Right, we
2:07:02can just toss on the daily chart. Boom.
2:07:05New day opens for New York session
2:07:09at 8:30.
2:07:13Okay, that's pre-market. And then 9:30
2:07:15is market open.
2:07:18What do we see price do? Price comes up.
2:07:20We manipulate the previous day high.
2:07:22Okay, during London session, we were
2:07:24over it for a little bit, but then
2:07:25again, this is like a mix of both.
2:07:28Previous day high getting manipulated
2:07:30then and central C Central's highs
2:07:33getting manipulated. Okay, so London
2:07:35session opens, we come up above previous
2:07:37day high. Not really much motion.
2:07:39Central C couldn't really pull anything
2:07:40off above these highs, but boom, big fat
2:07:43guys, they come into the market. Motion,
2:07:46okay, they come into the market,
2:07:48pre-market starts, we manipulate above
2:07:51Central C's highs right here. Okay, and
2:07:55back above previous day highs right
2:07:57here. And then what do we do? Boom.
2:07:59Where do we end up targeting? Not only
2:08:01do we end up targeting Central Seas's
2:08:04lows right here, we also end up
2:08:06targeting Asian Persuasion lows right
2:08:08here. And then we also end up targeting
2:08:10previous day lows right here.
2:08:15Okay.
2:08:19Again,
2:08:21this doesn't it this isn't just 1
2:08:23million% foolproof. I'm going to press
2:08:25sell every time we push above a previous
2:08:28day high. and I'm going to press buy
2:08:30every time we push underneath a previous
2:08:32day low. That's not the case. But what
2:08:36can it tell us? It gives us a higher
2:08:40probability high and low for us to look
2:08:42at in the market that price is going to
2:08:45look to target because again what lies
2:08:48above highs and lows within the market
2:08:50resting orders. That is how the market
2:08:52moves. If the market wants to move lower
2:08:55or if the literally if the market wants
2:08:57to move lower where does it have to go
2:08:58first? It needs to manipulate a high.
2:09:01And then once we manipulate highs in the
2:09:04market to push the market lower, where
2:09:06is it going to offload all of these
2:09:08orders that were just filled? Back
2:09:10underneath lows. So that's through boom,
2:09:13London session low, Asia session low,
2:09:15previous day low. And we'll we'll get
2:09:17into this when we talk about how to look
2:09:19for take profits.
2:09:22Okay?
2:09:24But this is very first steps
2:09:28of understanding significant draws on
2:09:31liquidity in the market. So we have
2:09:34session highs, session lows. Check,
2:09:36check, check, check, check. Previous day
2:09:38highs and previous day lows. Check,
2:09:41check, check, check, check. Next, we
2:09:43have low resistance liquidity. So low
2:09:46resistance highs and low resistance
2:09:49lows. You're probably like, "What does
2:09:52that mean?
2:09:53Well, I'm going to tell you, buddy. I'm
2:09:56going to tell you. Okay.
2:09:59Honestly, I think like the people that
2:10:01say this, I mean, I just put it because
2:10:03it sounds cool. Realistically, bros, I'm
2:10:06going to keep this [ __ ] above 50 with
2:10:07you. I'm going to explain this to you
2:10:09guys as if you were me in high school.
2:10:13All these other freaking nerds on
2:10:14YouTube, bro, they're like low
2:10:16resistance, liquidity, and current
2:10:19market structure shifts. You guys are
2:10:21freaking nerds. shut up and make the
2:10:23[ __ ] understandable. Low resistance
2:10:26liquidity
2:10:28is just stacked up highs and lows or you
2:10:32we can even call it trend line liquidity
2:10:34or just trend liquidity.
2:10:37Okay, so what do what do we know about
2:10:38trends? They make higher highs and
2:10:40higher lows, right? So boom, this is our
2:10:42uptrend.
2:10:45Beautiful.
2:10:48We have a low right here, a low right
2:10:49here, low right here, low right here. So
2:10:51when we eventually
2:10:54decide to manipulate a high to reverse
2:10:56the market to be able to fill sell
2:10:58orders,
2:11:00we have all of these trending lows that
2:11:03are stacked up. What do we know that
2:11:07lies underneath lows? Liquidity. So, if
2:11:10we fill a massive amount of sell orders
2:11:12up here, what are we probably going to
2:11:15want to target in order to offload
2:11:18the ma the sell orders in order to turn
2:11:21this into a profit? We need to target
2:11:23lows because what's underneath lows?
2:11:25People that are willing to go short. And
2:11:27if we're pressing short up here, we need
2:11:29we need people to be looking to short
2:11:33while we're buying back our positions
2:11:34for a lower cost, making us a profit.
2:11:38Oops.
2:11:40So that's why low resistance draws on
2:11:43liquidity are very important. It's when
2:11:44we have a series of lows or highs that
2:11:47are stacked up. If we go up and we
2:11:50manipulate this high and then we start
2:11:52getting whatever our entry confluences,
2:11:54we can look to take out all of these
2:11:56lows because all of these lows are yet
2:11:59to be manipulated. And a good analogy
2:12:02that I like to give when we're looking
2:12:04at low resistance liquidity is cookies
2:12:08in the cookie jar. Okay,
2:12:11if I'm the cookie monster and I'm like,
2:12:14I like a cookie. Okay, and we manipulate
2:12:19these highs and underneath these lows is
2:12:22a cookie.
2:12:24And I fill orders up here, I come down.
2:12:28I want a cookie. Okay, I want to be able
2:12:32to target these lows. Why? Because I'm
2:12:36going to be able to buy back my
2:12:37positions for a lower price and make me
2:12:39a profit. But why would I stop there
2:12:42when there's another cookie right here
2:12:44when there's even more sell positions
2:12:47right here? It's not going to stop me. I
2:12:50want more cookie. Okay? Cuz I want more
2:12:54profit. Remember, the market makers are
2:12:55greedy. They want as much money as
2:12:57possible. And why would we stop there?
2:13:00There's another cookie. We're going to
2:13:02keep going. Why would we stop there?
2:13:05There's one more cookie. I want cookie.
2:13:10Okay,
2:13:12we're the [ __ ] cookie monster.
2:13:18Same thing when we're reversing from a
2:13:20downtrend. If we're in a downtrend, we
2:13:22have a high high
2:13:25and then boom, we finally start
2:13:27reversing.
2:13:31I can hear my watch ticking.
2:13:38One, two, three, four, five, six, seven.
2:13:42Okay, sorry.
2:13:44I ended on six, seven. Period. Okay,
2:13:47lock in. Let's lock in. Okay, when we're
2:13:50in a downtrend, boom, let's say whatever
2:13:53price ends up manipulating these lows.
2:13:55There's cookie above this high, but why
2:13:57would we stop at this high? Because
2:13:59there's another cookie, and then there's
2:14:00another cookie, and then there's another
2:14:01cookie, and then there's another cookie,
2:14:02and then there's another cookie. We are
2:14:04going to want to take out all of these
2:14:06highs. Why? Because there's a whole
2:14:08bunch of resting orders that are lying
2:14:10above these highs that we can just blitz
2:14:13through. Absolutely blitz through to be
2:14:16able to take out. So, we can use and
2:14:20you're probably saying, "How is this
2:14:21useful for us?" Well, it's useful in
2:14:23both ways. Again, when we're traders,
2:14:25we're switch hitters. We can go both
2:14:27ways, mad. We can we can do both. All
2:14:31right. We can go both ways. We can
2:14:34either, let's say we're at a point in
2:14:37time where we're looking for a trade and
2:14:38we manipulate these lows and we see an
2:14:40entry entry confluences to press to
2:14:42press buy right here. Awesome. We can
2:14:45use all of these highs as exit
2:14:47confluences, as take-profit points
2:14:50because we know there's a whole bunch of
2:14:52resting orders above these highs. So, we
2:14:56know that pressing buy right here is a
2:14:58pretty good option, especially if we
2:15:00have entry confluences. Why? Because
2:15:02there's a whole bunch of orders that are
2:15:04going to want to get filled from the
2:15:06market makers on this move up.
2:15:09Now, what about
2:15:12on the contrary? Okay, if we're looking
2:15:16to enter into a position, okay, if we're
2:15:20at this point in time in the market, uh,
2:15:24let me see if I can get an eraser. Is
2:15:26that even possible? No.
2:15:29Let's say we're looking to enter into
2:15:31the market and the market just came down
2:15:34and took out all of these draws on
2:15:35liquidity.
2:15:37Well, awesome. We just took out one
2:15:40cookie, two cookie, three cookie, four
2:15:42cookie. That's a whole bunch of sell
2:15:45orders that have just been taken out
2:15:46from the market. What does that give us
2:15:48the ability to do? Fill a massive amount
2:15:51of buy orders to push price in the
2:15:53opposite direction. So, we can use this
2:15:55not only if we're looking to enter into
2:15:59a sell position
2:16:02up here as targets where we can target
2:16:05all of these cookies. But also, we can
2:16:08use it as again, let's say central C
2:16:11during his session, he already said,
2:16:14"Fuck those damn cookies. I want them."
2:16:17Fat obese guy says, "Bar, I wanted those
2:16:20cookies, but all good. I'm still going
2:16:22to use those cookies to my advantage
2:16:24because you ate all the cookies over
2:16:26here. So, I know I'm going to be able to
2:16:28press buy because there's no more sell
2:16:30orders in the market or all of these
2:16:32sell orders just got executed. Now, I
2:16:34can fill my massive amount of buy orders
2:16:35and then say, "Fuck you, Central C. I'm
2:16:37going to take out your highs."
2:16:39So, we can look at it in both ways. Hit
2:16:42it both ways.
2:16:44Okay. So, that's the importance of low
2:16:47resistance liquidity.
2:16:49another. So again, session highs and
2:16:51lows, significant draws in liquidity.
2:16:54Previous day highs and lows, significant
2:16:56draws in liquidity. Now again, you're
2:16:57probably saying, "I want to take a
2:16:59trade." Shut up. Shut up, dude. We're
2:17:02not even there yet. I know you want to
2:17:04trade. I know you want to make monies.
2:17:07We're not there yet. Digest the
2:17:09information. Write it down. Take notes.
2:17:11And we are going to get there. Okay?
2:17:12We're going to get there. It This takes
2:17:14time.
2:17:16Session highs and lows very important
2:17:19very high probability draws on liquidity
2:17:21where there could be potentially
2:17:22reversals at previous day highs and lows
2:17:25same thing high probability highs and
2:17:26lows where we can see a reversal at low
2:17:29resistance draws on liquidity stacked up
2:17:32highs and lows that can either be serve
2:17:35and but all of these can serve as entry
2:17:38points and exit points. So again, if we
2:17:41like we saw during the session session,
2:17:45if New York session comes up, sweeps out
2:17:47Central C's highs, what's a good exit
2:17:49point? Central SE's lows, right? Price
2:17:52is going to want to take out these
2:17:54highs. And then what's a good exit
2:17:55point? Boom. Session lows. Okay, so
2:17:58these are not only good entry and entry
2:18:00points, they're also good exit points.
2:18:02So session highs and lows, very
2:18:03important draws on liquidity. Previous
2:18:05day highs and lows, very important draws
2:18:07on liquidity. low resistance or trend
2:18:10line trend trending highs and lows very
2:18:13important draws on liquidity. Next
2:18:16relative equal highs and lows. So this
2:18:21is significant draws in liquidity just
2:18:24like just like with low resistance draws
2:18:27in liquidity where we have stacked up
2:18:29highs and lows. This is when we have
2:18:31pretty much like dead equal highs and
2:18:33lows. So we see a high right here and
2:18:35then we see boom. Oh, wait. Let me show
2:18:37you an example
2:18:40just so you know I'm not capping. Let me
2:18:42show you example of low resistance draws
2:18:44and liquidity getting tak taken out. And
2:18:46again, remember guys, the awesome thing
2:18:48about these confluences and the way that
2:18:51we trade, it happens on every single
2:18:53time frame. So you guys will find
2:18:54examples of this happening everywhere.
2:18:57Okay, so let's show a good example of
2:19:01low resistance draws and liquidity
2:19:03getting just absolutely torched. Okay,
2:19:06we have boom one low, boom, two low,
2:19:11boom, three low, boom, four low, boom,
2:19:16five low.
2:19:19Okay.
2:19:21And we can even show this. What is this?
2:19:24This is New York market open. What are
2:19:25these? These are central seas highs.
2:19:27Market opens. Boom. We manipulate
2:19:29central seas highs and Asia session
2:19:31highs. And then what do we have? We have
2:19:33a whole bunch of stacked up cookies. We
2:19:35have one low, two low, three low, four
2:19:38low, five low. We end up dumping and
2:19:40taking out all of them. Stacked up highs
2:19:42and lows. So in this case, this would be
2:19:44using low resistance draws and liquidity
2:19:46as exit points and session draws and
2:19:50liquidity as an entry point. We just use
2:19:53two of our high highly probability
2:19:57we [clears throat] just use two of our
2:19:58high probability highs and lows to our
2:20:01advantage. one for entries, two for
2:20:02exits. We use session highs and lows or
2:20:05session highs as our entry point and
2:20:08then low resistance draws and liquidity
2:20:10as our exit point. Exit here, exit here,
2:20:12exit here, exit here, exit here.
2:20:16Let's show another example in the
2:20:17opposite direction. This is perfect.
2:20:20What do we have? High. What else do we
2:20:24have?
2:20:29Another high. What else do we have?
2:20:32Another high. What else do we have?
2:20:34Another high.
2:20:36So, we have What is this? A downtrend.
2:20:39High. Lower high. Lower high. Lower
2:20:42high.
2:20:44Okay,
2:20:45we're in a downtrend. We start
2:20:47reversing. We take out this high, this
2:20:50high, this high, this high. And now we
2:20:53can use low resistance draws and
2:20:55liquidity in this example for an entry.
2:20:58We came up, took out all of these highs.
2:21:00What is that going to give the market
2:21:01the opportunity to do? Because there's
2:21:03buy orders sitting above every single
2:21:05one of these highs.
2:21:07It's going to give the market the
2:21:08opportunity to fill orders
2:21:12and then cause the market to go down.
2:21:14And then what do we notice within this?
2:21:16Once we fill the sell orders, what are
2:21:18we looking to target? We have a low. We
2:21:20have a low. We have
2:21:23a low.
2:21:26So once we go up and take out all of
2:21:28those low resistance highs,
2:21:30we sweep them and then where do we go
2:21:32and target? All of these low resistance
2:21:34lows.
2:21:36Simple, simple, simple, simple, simple.
2:21:38Next is relative equal highs and lows.
2:21:40Okay, same thing as low resistance draws
2:21:43and liquidity essentially, but it's just
2:21:45when we have two highs that are either
2:21:47equal to each other, so dead equal in
2:21:49price, so the same exact price or
2:21:53just like right underneath it. Okay,
2:21:56relative equal highs and lows like and
2:21:58equal highs and lows. It's pretty much
2:21:59the same thing as low resistance draws
2:22:00and liquidity. Why? Because it's like,
2:22:02hey, what do we have above these highs?
2:22:04Buy orders, buy orders. Two cookies
2:22:06better than one, right? And then even
2:22:09better if it's equal highs and lows,
2:22:11right? So if we have the same exact
2:22:13price for both of these highs, there's
2:22:16four times the amount of buy orders.
2:22:18Why? Because there's people that are
2:22:19going to get stopped out from their
2:22:21sells on this move down. Okay? There's
2:22:23people that are looking to go long above
2:22:25this high. There's people that are going
2:22:26to get stopped out from their sells on
2:22:28this move down. And then there's people
2:22:30looking to go long above this high. So
2:22:31there's two sets of buy orders above
2:22:32this high. Two sets of buy orders above
2:22:34this high. Boom. Whole bunch of cookies.
2:22:36Pow.
2:22:39Okay, same exact situation. Same thing
2:22:41with the lows. Okay, it's just when we
2:22:44have
2:22:46two equally priced lows or two lows that
2:22:50are very very close in price. Okay, so
2:22:52let's show an example of this.
2:23:01I want to find a good example. Like I'm
2:23:02seeing equal highs and equal lows
2:23:04getting manipulated. Oh, this is good.
2:23:05This is a good one here. Okay,
2:23:09so here
2:23:11these two lows. Ah, I mean close enough.
2:23:14Close enough. Close enough. Okay, this
2:23:17is this is a good enough example. Okay,
2:23:20low right here.
2:23:23Low right here.
2:23:25Literally
2:23:2750 cents apart. Okay,
2:23:31the market sees boom relative equal lows
2:23:34or equal lows manipulates it. What does
2:23:36that give the market the opportunity to
2:23:38do? Four times the amount of cookies
2:23:40underneath here. Buy [clears throat]
2:23:41positions.
2:23:42Bow pushes price back above these highs.
2:23:46Okay. Um let me find one more example
2:23:50but for highs and then
2:23:53we'll show you guys data highs and data
2:23:55lows.
2:23:58Okay, I mean this is a decent example.
2:24:00So we have one low right here and then
2:24:04we can see boom another low move down
2:24:08then a move up right here and then we
2:24:10have another low move down then a move
2:24:11up. The these two wick this wick and
2:24:14this wick are the exact same exact same
2:24:16price. So we have
2:24:19relative equal lows or equal lows on
2:24:21both of these lows. And then we also can
2:24:24combine that with boom low resistance
2:24:26liquidity because we have three lows
2:24:28stacked up. Okay, this is on the low
2:24:30time frame. It doesn't really matter,
2:24:32but it just it showcases the concept and
2:24:34just proves proves the point of this
2:24:36happens on every single time frame.
2:24:38Okay, so price comes up, we start
2:24:41reversing. When we start reversing, what
2:24:44can we do? We can look I mean this is
2:24:45another good example. We have boom, one
2:24:47cookie here, two, three, four cookies.
2:24:51What is the market market going to want
2:24:53to do? Target all of those lows. There
2:24:56you go. Relative equal lows.
2:25:00[clears throat]
2:25:04No. Did I get rid of it? Okay. Doesn't
2:25:06doesn't matter because the last one is
2:25:08data highs and data lows. What are data
2:25:11highs and data lows? Data highs and data
2:25:13lows are news data highs and news data
2:25:16lows. Okay. So, this is coming after
2:25:18high impact news events. Okay. So what
2:25:21we can do is we can go on to this handy
2:25:24dandy website called Forex Factory and
2:25:27what we are going to look for is red
2:25:28news folders. Okay. So this and we'll
2:25:32talk about high impact news and like
2:25:34risk management stuff later in this
2:25:35series. But essentially what we can do
2:25:39is we can look at these high impact news
2:25:41events. Okay. Like on the 13th I
2:25:45believe. Yeah. So the 13th we have CPI
2:25:48news data coming out. Okay. And this
2:25:50comes out an hour before market open.
2:25:52I'm in Puerto Rico, so this shows me
2:25:53Puerto Rico time. This is coming out at
2:25:558:30 a.m. Eastern time. Okay. 9:30 a.m.
2:25:58my time, but 8:30 a.m. Eastern time.
2:26:01Okay. So, we'll I'll show you guys an
2:26:04example of previous CPI. Hopefully, it
2:26:06plays out. Um cuz I I wasn't trading for
2:26:11all of December, so this will be good. I
2:26:13don't even know. We'll we'll see if it
2:26:15can demonstrate it well enough. But
2:26:17essentially when we have these high
2:26:18impact news events
2:26:21the
2:26:22candles will be very drastic right
2:26:24because it's like boom we get very
2:26:26important economic macroe e e e e e e e
2:26:28e e e e e e e e e e e e e e e e e e e e
2:26:28e e e e e e e e e e e e economic data
2:26:28about our country and in turn the NASDAQ
2:26:31and the S&P 500 when these news when
2:26:35these news um announcements come out it
2:26:38drastically affects the market. Okay.
2:26:40And it drastically affects the market on
2:26:42the low time frames. So what we can do
2:26:44is the highs of the news candles and the
2:26:48lows of the news candles are very very
2:26:50beneficial for us and serve as high
2:26:52probability draws in liquidity. Same
2:26:54thing as all these other draws in
2:26:56liquidity. We're just looking at the
2:26:57highs and the lows of the news candles.
2:26:59So what we'll do is we'll look at
2:27:01December and we'll look through and try
2:27:04and find CPI news data from December
2:27:1018th. Okay, awesome.
2:27:1218th of December.
2:27:14So, let's see if this ends up working in
2:27:17our favor here.
2:27:19Kind of not not so much on this day.
2:27:22Let's try and find a a better example of
2:27:24it just manipulating news candles new
2:27:26candle highs because again like I was
2:27:28like I was telling you guys, you're
2:27:30probably saying, "Okay, I'm just going
2:27:31to give up now because this didn't
2:27:33work." No, that's not the case. Again,
2:27:34remember these high probability highs
2:27:37and lows, it just gives the market
2:27:39makers the opportunity. So again, just
2:27:41pressing sell when we push above a data
2:27:43high or pressing buy when we push
2:27:45underneath a data low or pressing sell
2:27:47when we push above a London high or
2:27:50pressing buy when we push underneath
2:27:51London session low. That is not a good
2:27:53way to trade because we need other
2:27:55confluences to confirm that price is
2:27:57actually going to move in the direction
2:27:58that we want it to move. Okay, but we
2:28:02can just show show this example here.
2:28:04Okay, I mean this like we kind of get
2:28:07it. So this is market open. This is when
2:28:11news data came out. Okay. This is the
2:28:14news data candle high. This is the news
2:28:16data candle low. Okay. So boom. This
2:28:19this this news data wasn't like super
2:28:21super drastic as other typical CPI news
2:28:24data candles are. But this is pretty
2:28:26much what we would mark out. We would
2:28:28mark out the high and the low of the
2:28:29news data candle. And then this could be
2:28:31used as a drawn liquidity. Let's see if
2:28:33we can go to oh November there was the
2:28:36government shutdown. So,
2:28:40I don't know if we had we had PPI news
2:28:43data on the 25th. Maybe. Let's try and
2:28:46look at that. Let's see if PPI news data
2:28:48moved the market at all on the November
2:28:5025th.
2:28:52Not really so much.
2:28:54Let's see if we can find a good example
2:28:56of news data.
2:29:00Um, we have unemployment claims maybe.
2:29:02Let's see. November 20th.
2:29:06Uh, yeah. I mean, I guess
2:29:10I guess
2:29:13this is about as good as it's going to
2:29:14get, but you're going to have to take my
2:29:17word for this. So,
2:29:20boom. These are the highs. So, this
2:29:22right here, 8:30. When is this? 25th.
2:29:27Oh, wait. 20th. Oops.
2:29:31It's still not still not the best, but
2:29:33whatever. This is when unemployment
2:29:34claims came out. This is we can see
2:29:37we're not using the high as a reversal
2:29:40point. We're really using this um like
2:29:44really this high time frame high. But
2:29:46what are we able to use as a take-profit
2:29:49point? Data Data lows. So again, we get
2:29:54manipulation. We don't really use this
2:29:56high as much of a man manipulation point
2:29:59really. It was just taking out this high
2:30:01time frame high and then we get a
2:30:02reversal and then we end up taking out
2:30:04this news data low. And it kind of sucks
2:30:06because we didn't get much news data
2:30:08throughout uh this government shutdown.
2:30:14Um
2:30:16nonfarm
2:30:18and we haven't like this this this
2:30:20upcoming week is going to be good. This
2:30:23is this is actually perfect for you guys
2:30:25to look for examples of this coming up
2:30:27because this entire week we have a whole
2:30:29bunch of news. Okay, so like tomorrow or
2:30:32I guess today is when you guys would be
2:30:34watching this. Look and see what happens
2:30:36on ISM manufacturing PMI. Okay, this
2:30:39comes out at 10:00 a.m. Eastern time. So
2:30:41if you guys traded today, look at what
2:30:43happened to the ISM manufacturing PMI
2:30:45candle. See if we manipulated the high.
2:30:47See if we targeted the low. Um, but that
2:30:49is pretty much the last form of high
2:30:52probability draws and liquidity highs
2:30:54and lows that we can use to target or
2:30:57use as exit points within our strategy.
2:31:00Now, I know that was very long, very
2:31:04hard, okay, for you guys to consume,
2:31:10but hopefully that elevated your guys's
2:31:13understanding of liquidity a little bit
2:31:15more. All right, I know that was a very
2:31:16long lesson, but hopefully that helped
2:31:18you guys understand liquidity a little
2:31:20bit better instead of just saying, "Hey,
2:31:22yeah, look above highs and look below
2:31:24lows." And as we get into creating our
2:31:26strategy and putting all of this
2:31:28together, you're going to see tomorrow,
2:31:30we're going to be talking about fair
2:31:31value gaps and imbalances. Okay, that's
2:31:34uh essentially talking about internal
2:31:36liquidity. Okay, because this is
2:31:38something that you guys are going to
2:31:38hear me say a lot throughout the series.
2:31:40price is always either looking to take
2:31:44out external liquidity which is uh highs
2:31:48and lows or fill imbalances which is
2:31:51internal liquidity. Okay, which is
2:31:53typically like fair value gaps and
2:31:54imbalances. Okay. And there's a bunch of
2:31:56different imbalances that we can talk
2:31:58about, not just fair value gaps. There's
2:31:59going to be imbalances and then
2:32:01imbalances like advanced concepts just
2:32:04like we did with liquidity. Okay. So,
2:32:07keep your notebooks out. And your guys's
2:32:09homework for today is not only to get
2:32:11Panda Express while listening to Central
2:32:14C while eating a Big Mac so you guys can
2:32:15understand how all the sessions work
2:32:17together. The other thing that I need
2:32:18you guys to do is mark practice marking
2:32:20out the sessions and then just look at
2:32:23how sessions just like how we did today.
2:32:26Sweep out the session highs and then
2:32:28target the session lows. And then also
2:32:30do the same thing with previous day
2:32:31highs and previous day lows. Do the same
2:32:33thing with relative equal highs and
2:32:35relative equal lows. Do the same thing
2:32:37with low resistance highs and low
2:32:39resistance lows or just trend trend high
2:32:41trending highs and trending lows. Um and
2:32:44then last but not least, if you guys
2:32:45want to do a little extra credit, go
2:32:47through Forex Factory, find a bunch of
2:32:48high impact news events and then see how
2:32:50we use data highs and data lows, ads,
2:32:52draws, and liquidity for either
2:32:54potential entries or potential exits.
2:32:56Even if you guys don't necessarily have
2:32:58a strategy yet, just start trying to
2:33:00formulate in your head like, okay, we
2:33:03sweep out highs to then target lows.
2:33:05That is the forefront of our strategy.
2:33:08We're using draws on liquidity to target
2:33:12other draws. Okay? So, we sweep out
2:33:14highs, we're looking for sells down to
2:33:16lows. We sweep out lows, we're looking
2:33:18for buys up to highs. You guys are
2:33:21slowly slowly but surely starting to get
2:33:23this. Love and appreciate you guys. I'll
2:33:24see you guys tomorrow. What is going on
2:33:27sexy people? Welcome to break of
2:33:32structure. Let's get into this. What is
2:33:34breakup structure? Why is it useful for
2:33:37us? And how can we apply it to the
2:33:41charts? And how can we apply breakup
2:33:43structure with the advanced liquidity
2:33:45concepts and the liquidity concepts that
2:33:47we learned over the past two days. That
2:33:50being said, let's jump straight into it.
2:33:52Today is going to be a relatively quick
2:33:54lesson. Okay, you guys don't really need
2:33:56to learn too much. It's very, very, very
2:33:58simple of what breakup structure is. So,
2:34:02if you guys think back to I think it was
2:34:04like day three or four when we learned
2:34:06about how the market moves, what trends
2:34:08are. Okay, so we know that uptrends move
2:34:11in higher highs and higher lows. Boom.
2:34:13We already understand that. What else do
2:34:15we know about trends? They move in lower
2:34:17highs and lower lows. So, now we know
2:34:19what a trending market looks like. Now,
2:34:22this is market structure. We have a
2:34:24high, then a low, higher high, low,
2:34:26higher low, higher high, higher low. In
2:34:28a downtrend, it's a low, a high, lower
2:34:31low, lower high, lower low, lower high,
2:34:33lower low, lower high, lower low, lower
2:34:35high. Okay, that's how the market moves.
2:34:38And that is market structure. So, when
2:34:40we're in a downtrend, we're in bullish
2:34:41market structure or sorry, when we're in
2:34:43an uptrend, we are in bullish market
2:34:45structure. And when we're in a
2:34:47downtrend, we are in bearish market
2:34:50structure. So if we think about the word
2:34:53of the confluence that we are learning
2:34:55today, what does break of structure
2:34:58mean? It means when the current market
2:35:00structure that price is in breaks. So
2:35:04how do we break a bullish market how do
2:35:07we break bullish market structure or an
2:35:09uptrend? Well, if we're forming higher
2:35:11highs and higher lows, what would be a
2:35:14market structure break? We would have to
2:35:16break underneath the higher low and in
2:35:20turn make a lower low and then in turn
2:35:22make a lower high and then boom that is
2:35:25a market structure shift. That is a
2:35:28break of structure. Okay. And then on
2:35:31the flip side, what's a break of
2:35:33structure to the upside? When we're in a
2:35:34downtrend, we're making low, high, lower
2:35:37low, lower high, lower low, lower high.
2:35:39we have to push and break above a high
2:35:42to end up making a higher high than
2:35:44creating a higher low. That is a shift
2:35:47in market structure to the upside when
2:35:49we are in a downtrend. So, you're
2:35:51probably saying, well, how do we
2:35:53identify this on the chart? It is very,
2:35:55very easy. It's just like how you guys
2:35:57were using and identifying uptrends if
2:36:00you guys did did your homework on that
2:36:02day where we're looking for higher
2:36:04highs, higher lows, higher highs, higher
2:36:06lows. It's as simple as looking on the
2:36:09chart and seeing, okay, we're making
2:36:11higher highs and higher lows at this
2:36:12point in time. And all that we're
2:36:13looking for is the most recent low to
2:36:15get closed underneath. That is when we
2:36:18break bullish market structure. Now, in
2:36:20the same way, but in the opposite
2:36:23direction, if we're in a downtrend
2:36:24making lower lows and lower highs, how
2:36:26do we see a market structure break to
2:36:28the upside? We need to see a candle
2:36:31closure above the most recent high.
2:36:33Emphasis on the most recent high. So if
2:36:36we are looking if we are looking at
2:36:39price action, are we looking at this low
2:36:42to get broken? No, because this is the
2:36:45most recent low. Are we looking for this
2:36:46low to get broken? No, because this is
2:36:49the most recent low. Are we looking for
2:36:50this high to get broken above? No,
2:36:52because this is the most recent high.
2:36:54Hopefully you guys get that. Now, with
2:36:56that being said, let's go onto the
2:36:58chart. Like I said, this is going to be
2:37:00very, very easy, very, very simple for
2:37:02you guys to understand. Let's look from
2:37:05this point onward. What are we in? Well,
2:37:08we have a high, then we have a low, then
2:37:10we have a higher high, then we have a
2:37:12higher low. Awesome. We're in an
2:37:13uptrend. We go up, we make a higher
2:37:15high. We go down, we make a higher low.
2:37:17We go up, we make a higher high, then
2:37:20uh-oh, what do we do? We make a lower
2:37:22low. When do we break structure? When we
2:37:24see a candle closure underneath the most
2:37:27recent low. So, if we go on here and we
2:37:29see, okay, what are we in? We just
2:37:32identified bullish structure. We have a
2:37:33high, a low, higher high, higher low,
2:37:35higher high, higher low, higher high.
2:37:37Uhoh,
2:37:39somebody pooped his pants. If we go on
2:37:42here, we can again, if we're looking for
2:37:44a change in market structure, all that
2:37:46we're going to be doing is if we're
2:37:48looking for a change in market structure
2:37:49to the downside, all that we're going to
2:37:51be doing is we're going to be moni
2:37:53monitoring the most recent lows that are
2:37:55made within the uptrend. So, this was
2:37:56the most recent low. When do we break
2:37:58structure? Is it on this candle? This is
2:38:00a this is a good example right here. No,
2:38:03it's not on this candle. This is a very
2:38:05difficult one to read because we don't
2:38:07actually close underneath the low right
2:38:10here because the candle uh the candle
2:38:12body is equal with this low. We need the
2:38:15candle body to close underneath the
2:38:18lowest point of the most recent low. So,
2:38:21when do we actually get that breakup
2:38:22structure? We get the break of structure
2:38:24right here on the S&P 500. And then from
2:38:26there, what are we now in? We're in a
2:38:27downtrend. We have a high, a low, lower,
2:38:30lower high, lower low. Making a lower
2:38:33high right now. Potentially going to
2:38:34make a lower low. And I'm actually in a
2:38:37short position right now from all of
2:38:40this market structure. Believe it or
2:38:41not, eventually you guys are going to be
2:38:43able to take trades like this and you
2:38:45guys are eventually going to start
2:38:46making money. But that's not what we're
2:38:48here to talk about just yet. Again, the
2:38:51goal is for us to be able to accurately
2:38:53predict price action on a daily basis
2:38:55with a high probability and without
2:38:57these confluences, we are going to be
2:38:59unable to do do that. Now, let's show an
2:39:02example of a breaker structure to the
2:39:04upside. So, we can show we can see a
2:39:06pretty clear downtrend here. We have a
2:39:08high, then we have a low, then we have a
2:39:10lower high, then we have a lower low,
2:39:11lower high, lower low, lower high, big
2:39:13sell off to make a lower low, and then
2:39:15we make a lower high, then we make a
2:39:17higher low. Just be or sorry, just
2:39:19because we make a higher low from this
2:39:22low doesn't mean we've broken structure
2:39:24yet. Why? Because when we're looking for
2:39:26a breakup structure to the upside in
2:39:30bearish market structure, okay, what do
2:39:32we need? We need a candlestick closure
2:39:35above the most recent high. So, are we
2:39:37looking for this high to get closed
2:39:38above? No. What high are we looking to
2:39:40get closed above? This one right here.
2:39:42We see a move up, then a move down. This
2:39:44is the most recent high. So, wow. This
2:39:47is super similar to the last one that we
2:39:48did. So, when do we get a candlestick
2:39:50closure above this? Do we get it on this
2:39:52candle? No, because all it did was put a
2:39:54wick above it. That's something that's
2:39:56super important. If we see candlestick
2:39:58wicks that go above these highs, are we
2:40:00immediately pressing buy? Absolutely
2:40:02not. We need to wait until a full
2:40:05candlestick closes above the most recent
2:40:09high and then we can say, "Awesome.
2:40:11Price has shifted its order flow to the
2:40:14upside." Okay, awesome. and then we end
2:40:16up going higher. All right, same thing
2:40:18here. Okay, we see a downtrend that
2:40:21that's that that gets formed. Now, let
2:40:24me show you a quick example here that
2:40:26can confuse a lot of people. Let's take
2:40:28price from right here. Okay, we have a
2:40:31high, then we have a low, then we have a
2:40:33lower high. But does this break market
2:40:35structure? No. Because when we're
2:40:36looking for a break of structure to the
2:40:38downside down uh to the downside when
2:40:41we're we are in a current uptrend,
2:40:44we are looking for the most recent highs
2:40:46to get closed above or sorry when we are
2:40:49looking for a break of structure to the
2:40:51downside. We are looking for the most
2:40:53recent lows to get closed below. Sorry,
2:40:57we are in an uptrend. So what are we
2:40:58doing? We are monitoring the lows. So we
2:41:00have a move down then a move up.
2:41:02Awesome. This is the most recent low
2:41:03right here. We have a move up then a
2:41:05move down. This is a high. Is it higher
2:41:09than this high? No. But does that mean
2:41:13we've broken structure to the downside?
2:41:15No. Because in order for us to break
2:41:17structure to the downside, we are only
2:41:20monitoring the lows that are formed on
2:41:22the chart and specifically the most
2:41:24recent lows that are formed within the
2:41:26trend. So following that, we end up
2:41:28putting in a new low. So we have a move
2:41:30down then a move up. Awesome. Now this
2:41:31is the low that we're monitoring. Do we
2:41:33see a candlestick closure underneath
2:41:34that? No. Awesome. We have a high, then
2:41:38we go up. We make a higher high.
2:41:39Awesome. Then we get a move down, then a
2:41:41move up. Awesome. A higher low. Now,
2:41:43this is the low that we're monitoring to
2:41:45look for a breaker structure to the
2:41:47downside. We make a higher high. We come
2:41:50down and we make a drastically lower
2:41:52low. Okay, we look at this candlestick
2:41:55wick. It comes all the way down here. Is
2:41:57this a break of structure? Is this a
2:42:00break of structure?
2:42:05No. [screaming]
2:42:07Why is it not a break of structure?
2:42:10Why is it not a break of structure?
2:42:12Because we don't get a candlestick
2:42:14closure underneath this low.
2:42:17So, we get a move down then a move up.
2:42:20Okay. Move down then a move up. Where's
2:42:24now our most recent low? Now, this is
2:42:26the most recent low that we're
2:42:27monitoring within this uptrend. We're
2:42:29still in an uptrend even though we end
2:42:30up making a lower high and a lower low.
2:42:33We need a candlestick closure underneath
2:42:36the low. We see a move down then a move
2:42:38up. Awesome. That's a new low that we're
2:42:40monitoring.
2:42:43Now, do we get a break of structure to
2:42:44the to the downside? Yes. When do we get
2:42:47it on this candlestick closure
2:42:49underneath this low? And then from there
2:42:51we end up making a lower high, lower
2:42:53low, lower high, higher low. And then
2:42:56boom, we start the reversal one more
2:42:58time back to the upside once we close
2:43:00above this high right here.
2:43:02That is all breaker structure is. It's a
2:43:04very very simple concept. It's a very
2:43:07simple confluence and we are going to be
2:43:09using it side by side in tandem with
2:43:12liquidity sweeps. We can I mean it's
2:43:14very beneficial. We can I can literally
2:43:16show you guys this uh working in real
2:43:18time right now on the S&P 500. Price
2:43:21pushes up, takes out this high, takes
2:43:23out this high right here. And then if we
2:43:25go down to the lower time frames, how
2:43:27can we identify the change in order flow
2:43:30and the the filling of those orders on
2:43:33that liquidity sweep? Again, price comes
2:43:35up, takes out high time frame, draws the
2:43:37liquidity, a bunch of highs. What can we
2:43:40do? We can scale down to the lower time
2:43:42frame and we can see that those orders
2:43:44are getting filled. How through a low
2:43:46time frame 5 minute change in trend. How
2:43:48can we identify change in trend? By
2:43:50spotting break of structure. Boom. We
2:43:52get a break of structure and now we are
2:43:54trending lower. Why do we know that we
2:43:56were going to go lower from there? Well,
2:43:58because we had a bunch of resting orders
2:43:59that had the opportunity to get filled
2:44:01up here. How did we know that they got
2:44:04filled? Because we saw a change in the
2:44:06current bullish market structure on the
2:44:08low time frame. There are other
2:44:10confluences that come into play with
2:44:12this. It's not just as simple as okay,
2:44:15we pushed above a high and we got a
2:44:16breakup structure to the downside. So
2:44:17price is obviously going to go lower,
2:44:19but you guys are hopefully starting to
2:44:22understand what we are looking for in
2:44:24the markets by slowly putting these
2:44:26confluences together. Okay, so today was
2:44:29very very simple, very very easy
2:44:31covering breakup structure, how to
2:44:33understand when a trend is changing,
2:44:35changing structure to the upside,
2:44:37changing structure to the downside, how
2:44:39to identify it. Again, it's not a
2:44:42candlestick wick. It's a candlestick
2:44:44closure. Candlestick closure. And we are
2:44:46monitoring the most recent highs and the
2:44:48most recent lows in the market. My trade
2:44:52is doing very well right now. I need to
2:44:54keep an eye on it. But with that being
2:44:56said, I love appreciate you guys. I will
2:44:58see you guys tomorrow to talk about fair
2:44:59value gaps, which is our first
2:45:01continuation confluence. Okay, break of
2:45:03structure is a confirmation confluence.
2:45:06Why do I call it a confirmation
2:45:08confluence? It's because it confirms
2:45:12that the that orders have been filled.
2:45:14Okay. Where do orders have the potential
2:45:16to be filled? Above liquidity. My
2:45:18strategy is as follows. We look for
2:45:21potential for orders to be filled,
2:45:24confirmation that orders are filled, and
2:45:26then a continuation of the current trend
2:45:28that is now being created. What's going
2:45:30on, guys? And welcome to Fair Value Gaps
2:45:34Explained. So today is going to be
2:45:37another video that is a very very
2:45:39crucial concept in understanding because
2:45:42fair value gaps represent imbalances
2:45:44within the market and like I said I
2:45:46believe it was during the liquidity
2:45:47video price is always either moving to
2:45:50take out liquidity or to fill an
2:45:53imbalance so you can understand why this
2:45:55is going to be a very important concept
2:45:56for us to learn. So we're just going to
2:45:59jump straight into this. Um, so before I
2:46:04like actually break down what a fair
2:46:06value gap is, why it's beneficial for
2:46:08us, I use two different words to talk
2:46:11about fair value gaps, just so you guys
2:46:13don't get confused during this video.
2:46:14I'll either call it a fair value gap or
2:46:16I'll call it an imbalance. It's the same
2:46:18thing. It's literally just an imbalance
2:46:20in price. Um, fair value gap is just a
2:46:22nice way to call it. So what is Well, I
2:46:26mean, we just explained what a fair
2:46:27value gap is. It's a imbalance in price.
2:46:29So it's essentially a three candlestick
2:46:32pattern where price has one set of price
2:46:36movement and then an expansionary price
2:46:38movement and then another set of price
2:46:40price movement where there is a
2:46:42imbalance of price and a lack of orders
2:46:45that is in between the first and the
2:46:48third candlestick. And this is really
2:46:50like a lot of people they trade
2:46:52candlestick patterns. I don't trade
2:46:55candlestick patterns. candlestick
2:46:56patterns are like head and shoulders,
2:46:58double top, double bottom. Like I don't
2:47:01really believe in that [ __ ] Um because
2:47:03it's like again, why why is price moving
2:47:06the way that it is? You don't [ __ ]
2:47:07know. You're just saying, hey, I saw the
2:47:09McDonald's pattern on the chart and I
2:47:11decided to press sell. Me personally, I
2:47:13like to know, hey, I'm entering it
2:47:15because orders are being filled and I
2:47:17saw a change in change in order flow and
2:47:19then from there, I saw a continuation of
2:47:20the order flow that orders were filled
2:47:22in from the liquidity sweep. that makes
2:47:24a lot more sense than I saw a head and
2:47:26shoulders pattern on these random ass
2:47:28candlesticks. Like what what is that
2:47:30even telling you? It tells you a whole
2:47:31bunch of nothing. So that's why um I
2:47:34don't trade candlestick patterns.
2:47:36However,
2:47:38fair value gaps are essentially a a
2:47:40three candlestick pattern. It's a series
2:47:43of consecutive candlesticks. And this is
2:47:45pretty much how it's going to look. And
2:47:46then I'll show you guys examples of what
2:47:49it looks like on the chart. So, we have
2:47:50one candle, two candle, and then we have
2:47:54our third candle. Okay.
2:47:57And we'll go ahead
2:47:59and we'll use little trend lines to do
2:48:04the fair the wicks of the candle. This
2:48:07bottom wick doesn't really matter. This
2:48:09candle's wick doesn't really matter
2:48:11either. We can just do it like this.
2:48:13Really, just the top and the bottom wick
2:48:16matter. So, this is essentially what a
2:48:19fair value gap looks like. Okay. Um, I
2:48:22really only draw drew out the necessary
2:48:24portions of this, but it's a three
2:48:25candlestick pattern where we have the
2:48:28first candlestick, okay? And then we
2:48:30have a wick that goes up. We have the
2:48:32expansionary candle, okay? So, the
2:48:35candle that pushes price pretty pretty
2:48:37drastically up. This is an example of a
2:48:39bullish fair value gap. And then we have
2:48:42the third candle.
2:48:45Fair value gap. We do not see color.
2:48:47Okay, so fair value gaps, we are not
2:48:49racist. We do not care what color the
2:48:52first or the third candlesticks are.
2:48:55Okay, now you're probably saying, "Okay,
2:48:57well, what if this was a bullish
2:48:58candlestick?" Then the bullish
2:49:00candlestick would just look like this.
2:49:02We would just flip this [ __ ] right on
2:49:03around. Okay, let me move this away. If
2:49:06it was a bullish candlestick, it would
2:49:07look like this. And this would still be
2:49:09a fair value gap. Okay, the first
2:49:11candlestick could even be a down candle.
2:49:13Okay. So, the candle could look
2:49:16something like this.
2:49:19Okay. And this would still be a fair
2:49:20value gap. Okay. So, this can be a Well,
2:49:24this is still actually an up candle. So,
2:49:26um how how do I make Well, yeah. Okay.
2:49:30Let's Yeah, cuz the first one was
2:49:33actually a down candle. So, let's say it
2:49:36looks like this. There we go.
2:49:40This is a down candle here. This is
2:49:43still a fair value gap. [snorts] Okay.
2:49:45All that we need in order for there to
2:49:47be a fair value gap is a gap between the
2:49:49first candle's top wick and the third
2:49:51candle's bottom wick. Okay. So, this is
2:49:55where we have an imbalance in price.
2:49:56Now, why is there an imbalance in price?
2:49:58Well, let's think about our candlestick
2:49:59anatomy real quick. Price opened price
2:50:02opened up here, right? And at some point
2:50:05in time, price pushed up up here and
2:50:08then what happened? We had sell orders
2:50:10that ended up pushing price down. So, we
2:50:12had buy orders that pushed price up and
2:50:13then we had sell orders up here to push
2:50:15price down. And then we eventually had
2:50:17sell orders that caused us to close
2:50:19right here. This next candle, we open
2:50:21and then we get buy orders that boom
2:50:24push price all the way up here. And then
2:50:26we have sell orders that pushes pushes
2:50:27price down. Then from here, we have open
2:50:32and then we have buy orders that push
2:50:33price up and then we have sell orders
2:50:35that push price all the way down to
2:50:36here. Okay. So, what do we notice? We
2:50:40noticed that there is a lack of sell
2:50:42orders within this gap. How do we know
2:50:44that? Because at some point in time,
2:50:46price pushed up. Okay. And then what
2:50:49happened? There was sell orders to push
2:50:51price down to have price actually end up
2:50:53closing this as a bearish candlestick.
2:50:55And again, the first and the third
2:50:56candle, we do not see color. We do not
2:50:58care what the first and the third
2:51:00candlestick color is. Why? We only care
2:51:03about the candlestick wicks. And to see
2:51:04if there's a gap in between the first
2:51:06candle's top wick and the third candle's
2:51:08bottom wick. Okay? If we look at this
2:51:10third candle, what happens? We get sell
2:51:12orders that push price down to here and
2:51:13then buy orders that push price back up.
2:51:15So, where is there a lack of sell orders
2:51:17in the market in this candlestick
2:51:19pattern all within this gap here. Now,
2:51:22why is this a bullish fair value gap?
2:51:24Well, because we know that this
2:51:26expansionary candle was able to swiftly
2:51:28move through this imbalance of price
2:51:31action. Okay, imbalance of price. Why?
2:51:33Because there was a lack of sell orders
2:51:35within here. So, if we fill buy orders
2:51:37all the way through this candle, the
2:51:39second that we hit this area, boom,
2:51:40we're going to be able to push much
2:51:41higher. Same thing happens when we want
2:51:45to go revisit this candle. Okay? So,
2:51:48this third candle closed up here. What
2:51:50will typically happen is price will want
2:51:52to come down and if price ends up
2:51:54filling this gap and we see buy orders
2:51:57out of it, what will that cause price to
2:51:59do? It will cause price to push higher.
2:52:01Okay, [clears throat] this is what I
2:52:03call a continuation confluence because
2:52:05in this case we are already in in an
2:52:07uptrend and this is a confluence that
2:52:10helps us identify a continuation of the
2:52:12trend. Okay, how do we see continuation?
2:52:15Well, price is going to come down into
2:52:17this imbalance of price action where
2:52:19there's a lack of sell orders and if we
2:52:21see buy orders pushing price up and out
2:52:23of that, we know that the trend is going
2:52:26to continue higher. Why? because there's
2:52:28a lack of sell orders and if we fill buy
2:52:29orders right here, it's going to cause
2:52:31price to push higher. Now, let's show an
2:52:33example
2:52:35of a bearish fair value gap. Okay, so we
2:52:38have a candle right here. Again, it
2:52:40doesn't the first and the third candle.
2:52:42It does not matter what color they are.
2:52:44Okay, really the only candlestick color
2:52:47that matters
2:52:49is the one in the middle. Okay, so this
2:52:52one is a down candle. Okay. So, we have
2:52:56an up candle, then a down candle, and
2:52:58then we can even have another down
2:52:59candle right here. Again, the first and
2:53:01the third candlesticks, it does not
2:53:02matter.
2:53:04And in this case, we are looking for a
2:53:06lack of buy orders. Okay? So, we're
2:53:08going to take for a bearish for gap.
2:53:10We're going to take it from the bottom
2:53:12wick of the first candle and the top
2:53:15wick of the third candle. And as long as
2:53:17there is an a gap between the two, as
2:53:22long as there is a gap in between the
2:53:24two, then this is an this is imbalanced
2:53:27price action. Why is it imb Why is it
2:53:29imbalance? Because at some point in
2:53:31time, price had sell orders that pushed
2:53:33price down here, but then had buy orders
2:53:35to push it back up. Price opened right
2:53:37here. At some point in time, we had buy
2:53:39orders that push it up to here, but the
2:53:41buy orders stopped and then price ended
2:53:43up coming back down. So, where is there
2:53:45a lack of buy orders within the market?
2:53:47All the way through here. How do we know
2:53:49that there's a lack of buy orders? Well,
2:53:50on this candlestick, we were only able
2:53:52to push price down here and then up, buy
2:53:55orders, pushed it back up. And then on
2:53:56this expansionary candle, what were we
2:53:58able to do? Move very swiftly through
2:54:01this imbalance gap. How do we know that
2:54:03it's an imbalance? By looking at the
2:54:04third candlestick and seeing, oh, buy
2:54:06orders were only able to push price up
2:54:08to here. So what do we know that is in
2:54:11between these two candlesticks w
2:54:13candlestick wicks? We know that there's
2:54:15a lack of buy orders. So if we are in a
2:54:17downtrend and price pushes into this
2:54:20imbalance price action and we see sell
2:54:22orders coming out of that, what do we
2:54:24know? We know that sell orders have been
2:54:25filled within a price range where
2:54:27there's a lack of buy orders. And what
2:54:29is that going to cause the market to do?
2:54:30Because there's a lack of buy orders,
2:54:32there's going to be no sort of
2:54:33hesitation. If we are able to fill cell
2:54:35orders in this gap, we are going to be
2:54:38able to push price lower. Okay. So, all
2:54:40a fair value gap is is either in a
2:54:43bullish sense, there's a lack of sell
2:54:45orders within a current price range, and
2:54:47then in a bearish fair value gap,
2:54:49there's a lack of buy orders within a
2:54:51price range. Okay? Now, this is really
2:54:53all that I want to cover in today's
2:54:55video, and I want to show you guys
2:54:56examples of this on the chart. Now,
2:54:58something please. Just like all of our
2:55:00other confluences,
2:55:02we are unable to take trades on just a
2:55:05break of structure to the upside, on
2:55:06just a break of structure to the
2:55:08downside, on just price pushing above a
2:55:10high, on just price pushing below a low.
2:55:13We are slowly but surely learning all of
2:55:15the confluences that we need in order to
2:55:18put them all together to be able to
2:55:20build a profitable strategy that gives
2:55:22us probability. But we cannot use these
2:55:25confluences on their own. And I'll show
2:55:27you several examples of this happening
2:55:29in real time. Actually, before I do
2:55:31that, I need to show you guys examples
2:55:33of what a fair value gap is not so you
2:55:35guys don't get confused. Okay, so
2:55:39let's go here. Let's go here. Let's go
2:55:42here. Okay, let's say the third
2:55:44candlesticks wick goes all the way up
2:55:47here. And this candlestick wick goes all
2:55:49the way down here.
2:55:52the first candlestick. Again, we draw
2:55:54these imbalances out from uh at least
2:55:57bearish imbalances from the bottom of
2:55:58the first candlestick and the top of the
2:56:01third candlestick wick. Okay. So, do we
2:56:04have an imbalance here? No. Because the
2:56:06wicks are overlapping, meaning there was
2:56:08enough buy orders down here to push
2:56:10price back up and there was enough buy
2:56:12orders from down here to push price all
2:56:14the way up through here. So, is there a
2:56:15lack of buy orders? No. Buy orders over
2:56:18overlapped in this case. This is not an
2:56:21imbalance of price action.
2:56:23Same thing to the upside. Okay, if this
2:56:27is a bullish for value gap, if this is a
2:56:29bullish for value gap, we get price to
2:56:32push up and then we have sell orders
2:56:34that pushes price back down. So, we know
2:56:35that sell orders stop on the first
2:56:37candlestick right here. And then we get
2:56:39a decent size move up. But then on the
2:56:41third candlestick, what do we see? Sell
2:56:42orders that push price all the way down
2:56:44here. So, we see an overlap of sell
2:56:46orders. And there is not an imbalance.
2:56:49There is no lack of sell orders within
2:56:51this price range. So there is no not an
2:56:53imbalance. So price wants to come back
2:56:55down within this price range. That's
2:56:57we're not looking for a fair value gap
2:56:59because there is none. Again, it's a gap
2:57:01between the first candlesticks top wick
2:57:03and the third candlesticks bottom wick
2:57:05when it is a bullish for value gap.
2:57:07Okay. So now with that being said, let's
2:57:09show examples of this on the chart.
2:57:11Let's go on to the hourly time frame.
2:57:14Show you guys an example. This is a
2:57:16perfect example right here. Okay, let's
2:57:19look at price right here. What are we
2:57:21in? We are in an uptrend. How do we know
2:57:22that we're in an uptrend? Well, we have
2:57:24a high. We have a low. We have a higher
2:57:26high. We have a higher low. We have a
2:57:27higher high. And then we have a higher
2:57:28low. What do we notice about this higher
2:57:30low? Where does this higher low retrace
2:57:32into? What's this? This is a bullish
2:57:34fair value gap. How did we identify it?
2:57:37Well, we can see a gap between the first
2:57:40candlesticks top wick and the third
2:57:42candlestick bottom wick. Okay. So, what
2:57:44do we know about this? there's going to
2:57:46be a lack of sell orders within this
2:57:48price range. So when price comes in and
2:57:50then pushes out of it, we can
2:57:51understand, hey, we pushed into an
2:57:53imbalanced price range and we saw buy
2:57:54orders coming out of that. What is going
2:57:56what is that going to cause price to do?
2:57:58It's going to cause price to push
2:57:59higher. Okay, let's show an example of
2:58:03a bearish for value gap.
2:58:06This is a good example right here. Okay,
2:58:08on the 15minut time frame and we can
2:58:10actually see all of our confluences
2:58:12slowly started start to come into play
2:58:14here. So, let's put this all together
2:58:15really quickly. What do we have right
2:58:17here? We have a high. What does price
2:58:19do? Come up, sweeps the high. So, what
2:58:21do we have the potential to do? We have
2:58:23potential to fill orders up here. Then
2:58:26what does price do? It comes down and it
2:58:28breaks structure to the downside on this
2:58:30candlestick. Awesome. So, we see that
2:58:32orders were filled. We see confirmation
2:58:34that orders were filled through a break
2:58:36of structure to the downside. How do we
2:58:37know that this trend is going to
2:58:38continue at least in the short term?
2:58:40Well, we have our continuation
2:58:42confluence, which is a fair value gap
2:58:44right here. What is this? This is a
2:58:46bearish fair value gap. If we look, we
2:58:48see the bottom of the first candle's
2:58:50wick, the top of the third candle's
2:58:52wick, we have the expansionary candle.
2:58:54What does price do? Price pushes up into
2:58:56the imbalance price action. And then
2:58:58from there, we see a bearish candle
2:59:01following that. And then from there,
2:59:03price continues lower, at least for the
2:59:04time being. Okay, so this is an example
2:59:06of a bearish for gap.
2:59:09Now,
2:59:11let's show an example of a fair value
2:59:14gap getting disrespected.
2:59:16And we're actually going to learn about
2:59:18this in a completely separate uh video
2:59:22because this can actually be used as a
2:59:26confirmation confluence, but we're not
2:59:28going to go there just yet. We are going
2:59:30to talk about how to identify um a fair
2:59:35value gap that gets disrespected first.
2:59:38Okay? We're not going to necessarily
2:59:40talk about um inverse fair value gaps
2:59:42just yet, but this is examples of fair
2:59:45value gaps getting disrespected. So,
2:59:47let's go here. This is a good example
2:59:51right here. And this just proves my
2:59:54point a little bit where we cannot just
2:59:56be taking trades off of these
2:59:58confluences willy-nilly just saying,
3:00:00"Hey, there's a fair value gap and then
3:00:01we got whatever a down candle out of it.
3:00:04I'm just going to press the sell
3:00:06button." Okay, that's not how we do
3:00:08things around here. That's not what
3:00:10we're looking for. So, what do we have
3:00:11here? We have a bearish foral gap,
3:00:13right? We get a break structure to the
3:00:15downside. Boom. We create a bearish
3:00:17value gap. The bottom wick of the first
3:00:19candle, the top wick of the third
3:00:20candle, we have a good expansionary
3:00:22candle right here. We see price come up
3:00:24and then we see a rejection candle right
3:00:26here. However, what follows? We see
3:00:30boom, a big bullish candle. When is a
3:00:34fair value gap disrespected? When we get
3:00:36a candle closure, it's almost just like
3:00:39a break of structure. When we get a
3:00:40candle closure
3:00:42above the gap. Okay. So, if we get a
3:00:45bullish candle closure above our bearish
3:00:49fair value gap, that fair value gap is
3:00:51no longer valid and is no longer useful
3:00:53to to us. Okay. And in turn, I mean,
3:00:57this is kind of giving a hint at what
3:00:59we're going to talk about for inverse
3:01:00for value gaps. That typically means the
3:01:02trend has changed and we are going to
3:01:04move higher.
3:01:07Because again, if we think about this
3:01:09logically, a fair value gap is supposed
3:01:11to show a continuation of the current
3:01:15trend that we're in. So if that fair
3:01:19value gap gets disrespected, that's
3:01:21pretty much saying that the trend that
3:01:23we're in just got disrespected, similar
3:01:26to a break of structure. And hopefully
3:01:29you guys are slowly but surely starting
3:01:31to understand that. Okay, let's show an
3:01:34example of a bullish for value gap
3:01:36getting disrespected. Same situation
3:01:38right here.
3:01:40We have boom
3:01:43a gap. This is a bullish gap from the
3:01:47first candle's top wick to the third
3:01:49candle's bottom wick. This is the
3:01:50expansionary candle. We come in. Now
3:01:53this is ju it's just like breakup
3:01:55structure. Okay, where if we see a
3:01:58candlestick wick that goes all the way
3:02:00down here, all the way down here, but we
3:02:03still do not close
3:02:06underneath the gap. It has not been
3:02:08disrespected yet. Obviously, very
3:02:11shortly after we get a massive close
3:02:14underneath the gap and that disrespects
3:02:16the fair value gap, but on this bullish
3:02:18candlestick closure, this gap is still
3:02:21maintained and is still valid. So, it's
3:02:23just like breakup structure where we
3:02:25need to see a candlestick closure
3:02:28underneath this line right here in order
3:02:31for the gap to be invalidated.
3:02:34Now, there's a couple examples that I'm
3:02:37going to try and find on the chart that
3:02:39might confuse some people. Like right
3:02:41here, for example,
3:02:43what happens if we have a bunch of fair
3:02:46value gaps stacked up on top of each
3:02:47other? Okay. So in this case we have
3:02:50boom a bullish for value gap right here
3:02:52and then we have another bullish for
3:02:54value gap right here
3:02:56and then we have another bullish for
3:02:58value gap right here. Okay. What do we
3:03:02do when we have fair value gaps stacked
3:03:04up on top of each other? Well all of
3:03:06them are valid. Okay. So if we are in an
3:03:09uptrend and we end up closing especially
3:03:12so when they are stacked up on top of
3:03:15each other when we have bullish for
3:03:16valley gap bullish for valley gap
3:03:17bullish for valley gap with no form of a
3:03:20retrace in between there that's very
3:03:23important with no form of a retrace in
3:03:26between these fair value gaps that are
3:03:27stacked up. So no down candles.
3:03:30All of these all of these fair value
3:03:32gaps are valid to be pushed into. So in
3:03:35this case, we end up respecting this
3:03:37fair value gap and then we push higher
3:03:38off of that. Okay?
3:03:41When we do that, we can now remove all
3:03:45of these fair value gaps that are
3:03:46underneath and this one because it's
3:03:48been used. Why is that the case? Because
3:03:51if we were to just zoom out on the
3:03:53higher time frame,
3:03:55pretty much this entire
3:03:59move up is just imbalance price action,
3:04:01right? Because it's just fair value gap
3:04:03stacked, stacked, stacked. So from here
3:04:06to down here is the imbalanced price
3:04:09price action. When price comes into the
3:04:12imbalanced price action and then pushes
3:04:14higher, that means that price did not
3:04:18need to balance out any of this price
3:04:21action. And once we push above the high
3:04:24in a bullish scenario, then we no longer
3:04:28need to have these fair value gaps on
3:04:29our chart. Why? Because from here up to
3:04:31here was the imbalanced price action.
3:04:33Price came in, balanced out that
3:04:35imbalanced price action, and then
3:04:37decided to move higher. Okay. Now, on
3:04:41the flip side, price very well didn't
3:04:44have to respect this top fair value gap.
3:04:46It could have closed underneath it. Does
3:04:49that mean that the trend has changed?
3:04:52No. Why? Because we still have this
3:04:54imbalance right here and we have this
3:04:56imbalance right here. So just because we
3:04:59invalidate this top fair value gap
3:05:02doesn't mean that price still is unable
3:05:04to use this fair value gap right here.
3:05:06So price very well could have closed
3:05:08underneath this gap. That means that
3:05:10this gap isn't viable. However, this one
3:05:12is. So price could have put its wick
3:05:14down under here and then if price did
3:05:16that and then pushed above this high,
3:05:18what does that mean? Awesome. We
3:05:20balanced out the price range as much as
3:05:21we needed to and now price is going to
3:05:23continue higher and we no longer need
3:05:25this for value gap. Price could have
3:05:27done the same thing with the second fair
3:05:29value gap. We could have closed all the
3:05:31way underneath here, put a wick into
3:05:34this fair value gap, and then from there
3:05:35pushed above the high and that still
3:05:38would have been valid. Okay, let me show
3:05:40you an example that is not the case when
3:05:42we have fair value gaps stacked up on
3:05:44top of each other. Okay, and I'll show
3:05:46you guys a bearish example as well.
3:05:48Okay, here we go. So,
3:05:51right here, what are we in? We're in an
3:05:53uptrend. Why? Because we closed above
3:05:55this recent high, right? We have a high,
3:05:56low, higher, high. Awesome. We have
3:05:59several bullish fair value gaps that are
3:06:01stacked up on top of each other. We have
3:06:02a fair value gap right here. We have a
3:06:04fair value gap right here. We have a
3:06:07fair value gap right here. And we have a
3:06:11little itty bitty
3:06:15fair value gap. Uh, just kidding. We
3:06:17don't. Okay. This still holds though.
3:06:21Okay. So, what do we see price do? We
3:06:23see price push all the way through this
3:06:25fair value gap. Awesome. And we see a
3:06:28wick that goes underneath it and then
3:06:30into this gap. And then from there, we
3:06:32get a bullish closure out of it. We're
3:06:34still in an uptrend, right? Because we
3:06:35don't break structure to the downside.
3:06:38We don't break structure to the
3:06:39downside. And price
3:06:41is in bullish market structure. So, we
3:06:44come down, we fill this gap. Does that
3:06:47mean we have to reverse off of this gap?
3:06:49Well, no. Because we have this gap right
3:06:50here and this gap right here that price
3:06:52could respect. Price goes lower, fills
3:06:54this gap, and then we get a bullish
3:06:56candle out of it. Awesome. From there,
3:06:58we know that, hey, price has balanced
3:07:02out this price action. Why? Because we
3:07:05see a bullish candle closure. Okay. From
3:07:08there, we can say safely assume that
3:07:10price is going to move higher from
3:07:11there. Obviously, this all has to come
3:07:13with context. We need to put all of our
3:07:15confluences together in order to make
3:07:17this happen. But we can see that this is
3:07:19a good example of price pushing through
3:07:21one fair value gap and then wanting to
3:07:22hit another one that's stacked up on on
3:07:25top of each other. And then from there,
3:07:28once we fill this fair value gap and
3:07:31this fair value gap, do we leave this
3:07:33fair value gap on right here once we
3:07:36push above this high? No, we don't. This
3:07:39fair value gap is no longer valid. Why?
3:07:41Because we had an imbalance price range
3:07:44from here all the way up to here. And we
3:07:46saw price come all the way down, balance
3:07:48it out, push above above this high,
3:07:51pretty much telling us, hey, this this
3:07:54imbalance price action, that was all we
3:07:56needed to do. We didn't need to fill
3:07:58this gap gap to f to balance out that
3:08:00price action. So in turn, you need to
3:08:03delete it from your chart. And you're
3:08:04not going to drag it all the way over
3:08:06and say, "Yeah, this is going to be
3:08:09valid somewhere over here in like 3
3:08:12years for price to come down and hit it
3:08:14as a bullish for value gap." [ __ ] No,
3:08:16that's not the case. Okay,
3:08:21let me find a another example.
3:08:26Okay, this is a good example right here.
3:08:29So, we have a bearish for value gap
3:08:32right here. And then we have another one
3:08:34stacked up on top of it right here. So,
3:08:37we have two consecutive bearish for
3:08:39value gaps. We get a retrace up into it.
3:08:42We're in a downtrend. And then we see a
3:08:44bearish closure underneath it. And then
3:08:46we push underneath this low. Awesome.
3:08:49Again, the imbalance price range
3:08:52is from here down to here. So price very
3:08:56well could have pushed up and used this
3:08:58for value gap and pushed lower. That
3:08:59would have been valid. But in this case,
3:09:02price is telling us, hey, we push into
3:09:04this. We push into the imbalance price
3:09:06action. And then once we push underneath
3:09:08this low, so on this candlestick,
3:09:10it's pretty much telling us, hey, we
3:09:12balanced out everything that we needed
3:09:14within this price range. We no longer
3:09:17need to go back up into and to balance
3:09:19this out. So, what a lot of people will
3:09:21do is they will look at this retracement
3:09:24on up and they'll be like, "Oh, it was
3:09:26just filling the bearish for value gap."
3:09:29No, it wasn't. Price, this move up was
3:09:32not filling this bearish for value gap.
3:09:35Why? Because this
3:09:38imbalance of price price action was
3:09:40already balanced out by this move up and
3:09:43then this move down.
3:09:47So why did price move up here? It wasn't
3:09:49for the fair value gap. It was for
3:09:52the sweep of liquidity to take out these
3:09:54highs and then to push price lower.
3:09:56That's where a lot of people will mess
3:09:58up. They will leave fair value gaps on
3:10:00the chart that have either already been
3:10:02used or they will leave fair value gaps
3:10:04like this one up here and drag it all
3:10:07the way over here and then they'll see
3:10:09price come up into it and then see a
3:10:10little sell off and they're like, "Oh,
3:10:12I'm going to take a short off of this."
3:10:14When that's the stupidest thing ever
3:10:16because we know that this was the
3:10:18imbalanced price range and price already
3:10:21came up, filled this imbalance price
3:10:23range and told us, "Hey, we balanced out
3:10:25that price range all that we needed."
3:10:27Okay, so we need to delete this fair
3:10:30value gap off of our chart or else
3:10:32that's going to cause us to take short
3:10:33positions off of this and then end up
3:10:35getting [ __ ] and getting stopped out.
3:10:38Okay, very very important. Okay, and
3:10:41we're going to go in deeper when we talk
3:10:43about inverse fair value gaps, how these
3:10:46stacked up gaps are going to work on
3:10:48that end. Um, but that's just this is
3:10:52just the first um the first little
3:10:55lesson when it comes to fair value gaps.
3:10:57So hopefully you guys were able to
3:10:59understand that. Okay, what are fair
3:11:00value gaps? It's an imbalance in price.
3:11:03Okay, how do we how do we identify it?
3:11:05It's from in a bullish scenario, it's
3:11:07from the top wick of the first
3:11:10candlestick to the bottom wick of the
3:11:12third candlestick with an expansionary
3:11:14candle in the middle. Okay, we what is
3:11:17not a fair value gap? When the two wicks
3:11:19overlap in a bearish bearish scenario,
3:11:22it's from the bottom wick of the first
3:11:25candlestick to the top wick of the third
3:11:27candlestick with an expansionary candle
3:11:29in between. Can we have fair value gaps
3:11:31that are stacked up on top of each
3:11:33other? Yes. Let me do one more example
3:11:37real quick just so you guys do not get
3:11:40confused. Here's one last example that I
3:11:43want to show you. We have a bullish fair
3:11:45value gap right here. And then we end up
3:11:48getting another one right here. Very
3:11:52little one. And then we end up getting
3:11:54another one right here. We have this
3:11:56fair value gap right here. Price comes
3:11:59up. We get a retracement down. This fair
3:12:01value gap does not get filled. And then
3:12:03we end up pushing above this high.
3:12:07What do we do with this fair value gap
3:12:08once this high gets pushed above?
3:12:11Do we keep it on our chart? Do we drag
3:12:13it over? No. Because even though this is
3:12:18imbalanced price action, when we see
3:12:20price come down and then close above
3:12:23this high to continue the uptrend that
3:12:25we're in, we have a high, low, higher
3:12:28high, higher low, then we push up to
3:12:30make a higher high.
3:12:32Yes, we have an imbalance of price
3:12:34action right here. Price does not have
3:12:38any obligation to us or the chart
3:12:42to have to fill this gap to have to fill
3:12:45out this balance imbalance price action.
3:12:48Again, just like liquidity,
3:12:51just because we push above a high
3:12:52doesn't mean that price has to reverse
3:12:55off of it. It just has the opportunity
3:12:58and it just it it just has the
3:13:01opportunity to.
3:13:03So, when we're in an uptrend and we have
3:13:06imbalanced a imbalanced price range
3:13:08right here and we get a retrace, but we
3:13:10don't end up filling this imbalanced
3:13:12price range and then we continue the
3:13:13trend by pushing above this high.
3:13:17What is price telling us? It's telling
3:13:19us that hey, we didn't need this fair
3:13:22value gap to to push price higher. We
3:13:24didn't need to balance out this price
3:13:25action. So, what does that tell me about
3:13:28this fair value gap? We can boom, get
3:13:30rid of it from my chart. Why? Because we
3:13:34closed above this high and we pushed
3:13:36higher. Price was telling us that we did
3:13:38not need to balance out this price
3:13:40action right here.
3:13:42Now,
3:13:44let's [snorts] look again right here. We
3:13:46have a fair value gap, then another fair
3:13:48value gap, then we get a retracement
3:13:50down.
3:13:52Following that retracement down, what do
3:13:53we do? We actually end up I mean, this
3:13:55was over the weekend, but we end up
3:13:57closing a lot higher or opening a lot
3:14:00higher. So, what does that tell me about
3:14:02both of these fair value gaps? Do we
3:14:04drag them over because we're like, "Hey,
3:14:06this is an imbalance price action
3:14:08that can be used." No.
3:14:12Price retraced and then pushed back
3:14:15above this high, continuing the uptrend.
3:14:17So, what is price telling us about these
3:14:19two imbalance price ranges? It was
3:14:22saying, "Hey, we understand that there's
3:14:25imbalance price right here, but we do
3:14:27not need that to continue the trend." So
3:14:29price ends up pushing higher. So what do
3:14:32we do to these fair value gaps? We
3:14:33remove them from our charts. We do not
3:14:35drag them over. We that is not the
3:14:38reason for price to push higher right
3:14:40here. That is not the case. Okay? It is
3:14:44only within the current trend that we
3:14:46are in. We don't drag it over. We aren't
3:14:48trying to say, "Hey, look, these fair
3:14:51value gaps from right here
3:14:54are going to get used all the way over
3:14:57here." No. Why? Because price already
3:15:00pushed up into it and balanced out the
3:15:02price action from both of these fair
3:15:06value gaps right here. Both of these
3:15:07fair value gaps are stacked up on top of
3:15:08each other. There's no retrace in
3:15:10between. So, both of these are valid. We
3:15:12have imbalanced price action from this
3:15:14candlestick wick to this candlestick
3:15:16wick. What do we see price do? Balance
3:15:19it out. And then boom, we come down and
3:15:21we close underneath the low. So, what
3:15:23does that mean about both of these
3:15:25imbalances or about this imbalance price
3:15:27action? Price wanted to balance it out.
3:15:30It did. And then when we push underneath
3:15:31the low, it's saying, "Thank you. We
3:15:33were able to fill these orders and now
3:15:35we're done with this imbalance price
3:15:36action. So, what do you have to do to
3:15:38these fair value gaps? You remove them
3:15:39from your chart. Or else over here,
3:15:41you're going to say, "Oh, price is
3:15:43filling a imbalanced price action where
3:15:45if we see sell orders out of that, then
3:15:47we're going to go lower." No, that's not
3:15:49the case. Why? Because price had already
3:15:51balanced out that price action.
3:15:53Cool, cool. What is going on guys and
3:15:57welcome to advanced imbalanced concepts.
3:16:02Okay, so this is going to be covering
3:16:05other imbalances that we can see within
3:16:07the market and then also touching a
3:16:10little bit up on uh for value gaps just
3:16:13one more time and then tomorrow we're
3:16:15going to be uh covering inverse for
3:16:18value gaps. Um but today I want to talk
3:16:22about the different there's other
3:16:24imbalances that we can see within the
3:16:26market. Um so with that being said,
3:16:28let's jump straight into it. So what are
3:16:31the other imbalances that are in the
3:16:33market besides just for value gaps?
3:16:36There are
3:16:38new day oh jeez new day opening gaps,
3:16:42new week opening gaps, new candle
3:16:45opening gaps.
3:16:47And then there are BPRs.
3:16:51And we'll talk about fair value gaps a
3:16:53little bit more at the end of this. So,
3:16:55first thing, this is going to be super
3:16:57super easy for you guys to understand.
3:16:59What is a new day opening gap? Well,
3:17:01it's pretty simple. It's when we close
3:17:04the current day and then we open into
3:17:07the new day. There's a small hour where
3:17:10the market is not going to be trading
3:17:12during that time. And in turn, if we
3:17:15let's say close the previous day right
3:17:18here and then we open the day the new
3:17:21day right here after that hour then this
3:17:24would be considered a new day opening
3:17:26gap. Okay, you guys will see this we'll
3:17:29show examples of this on the chart and
3:17:31all that it is is a area of imbalance
3:17:34price that price is actively going to
3:17:36want to seek out to balance out before
3:17:39continuing in the direction that it
3:17:40wants to go. Now, how can you guys use
3:17:42this to your advantage?
3:17:44To be honest, it's very rare that we are
3:17:48able to be able to take trades towards
3:17:51new day opening gaps or towards new week
3:17:54opening gaps. So, you're probably
3:17:55saying, well, why are you even teaching
3:17:57teaching us about this? Because it is my
3:18:00duty to you guys as your mentor to be
3:18:02able to um pretty much teach you guys
3:18:05everything that I know about the markets
3:18:06um within this series. That's my goal
3:18:08with this is to teach you guys
3:18:10everything. And on occasion, there are
3:18:13very, very good trades that we can do
3:18:15that we can take to target these new day
3:18:18opening gaps and new week opening gaps
3:18:21and potentially new candle opening gaps.
3:18:24Okay, so same thing with so that's new
3:18:28day opening gaps. It's very very simple.
3:18:30Okay, let's say the previous day closed
3:18:32right here. An hour goes by, the new day
3:18:34opens up here. There's a gap between the
3:18:37two candlesticks, close and open. Price
3:18:40is actively going to want to seek out to
3:18:43fill the new day the new day opening gap
3:18:46and then continue in the direction that
3:18:47it wants to go. So, how is this
3:18:49beneficial for us? One, we know that we
3:18:52can actually treat these new day opening
3:18:53gaps as very strong draws on liquidity.
3:18:56Now, you're probably saying, "I thought
3:18:57imbalances aren't draws on liquidity."
3:18:59Yes, fair value gaps are not required to
3:19:01get filled. That's what we talked about
3:19:02yesterday. They are by all means not
3:19:04required to get filled and new day
3:19:06opening gaps and new week opening gaps
3:19:08are not required to get filled either.
3:19:11However, price more often than not has a
3:19:15very high probability of actively
3:19:17wanting to seek out these gaps and these
3:19:19imbalanced price ranges specifically new
3:19:21day and new week opening gaps to balance
3:19:24it out and then continue price in its
3:19:26direction. So you can use this as one of
3:19:29two things. Either as an entry point by
3:19:31understanding, hey, we have imbalanced
3:19:32price action right here and we are going
3:19:34to want to target the new day opening
3:19:36gap first before continuing the trend
3:19:38higher and look for an entry there. Or
3:19:40if we are well above a new day opening
3:19:42gap, you can say, hey, look, we have a
3:19:44new day opening gap right here. This is
3:19:46probably where price is going to want to
3:19:47draw towards and we can use it as a
3:19:49target. Same thing with new week opening
3:19:52gaps. As you guys know, the market
3:19:53closes on Friday and then reopens in
3:19:56like Sunday the afternoon, depending on
3:19:58what time zone you're in. So, typically,
3:20:00I mean, we we'll show it on the chart,
3:20:02but boom, let's say this was Friday's
3:20:04close right here. And then boom, Sunday
3:20:07open is up here. It's the same exact
3:20:09thing, but just happening on over a week
3:20:12on the weekly candlesticks. Okay, so
3:20:15again, if there's a gap between Friday's
3:20:18close and Sunday's open, what will price
3:20:20typically do? it will want to actively
3:20:22seek out that weekly imbalance price
3:20:24action and then continue in the
3:20:26direction that it wants to go. Again,
3:20:27you can use this to to your advantage by
3:20:30either taking trades towards the new
3:20:32week opening gap as a target or taking
3:20:35trades within the new week opening gap
3:20:36as an entry. Okay, the next thing is new
3:20:40candle opening gaps. And then we're
3:20:42going to show all of these on the chart.
3:20:44So, new candle opening gaps are
3:20:46literally the exact same thing as new
3:20:48day, new week opening gaps, but just on
3:20:50any time frame that you're trading on.
3:20:52So, just like how on the daily time
3:20:54frame, we can have gaps between the days
3:20:57and just like how on the weekly time
3:20:58frame, we can have gaps between the
3:21:00weeks, we can also have gaps between
3:21:02candlestick closures. So, let's say that
3:21:03we are on the 4hour time frame, for
3:21:05example, and the 4hour candlestick
3:21:08closes right here, and then we have the
3:21:10next 4hour candle opens up here. it
3:21:12jumps up. This right here is imbalanced
3:21:14price action. What is price actively
3:21:16going to want to do? It's going to want
3:21:17to balance it out and then continue in
3:21:19the direction that it wants to go. This
3:21:21one I'm going to be I'm going to keep it
3:21:24an absolute buck with you guys. Is
3:21:25pretty freaking useless. Um, but I
3:21:27figured I would put it in there because
3:21:29it does happen and it is an imbalance in
3:21:31price action. You will very very very
3:21:34very very very very very very like
3:21:360.0000001% 0000001%
3:21:39of the time be looking to take a trade
3:21:42off of a new candle opening gap um as an
3:21:45entry or a new candle opening gap as a
3:21:48target. And the reason behind this is
3:21:50because we need to think new day opening
3:21:53gaps. Why are we able to use this as a
3:21:55target or as an entry? Because there's
3:21:57an hour worth of price action or there's
3:21:59an hour that we are pretty much skipping
3:22:02from market close to the new day open.
3:22:05So there's an hour that price can shift
3:22:08and that price can move. For new week
3:22:10opening gaps, there's two whole days
3:22:12that price is able to shift and that
3:22:14price is able to move. So with that
3:22:16understanding, it's like okay, there's
3:22:18there's there's time in between these
3:22:20candlesticks closing close and opens.
3:22:22However, for new candle opening gaps,
3:22:25it's like there's it's it's literally
3:22:28from the candlestick close to the next
3:22:30candlestick open. And if the market's
3:22:32open, you know, it's pretty rare for a
3:22:34candlestick to close and then the next
3:22:36candlestick while the market is open to
3:22:38just jump up in price while the market
3:22:41is open, fluid, and orders are being
3:22:43filled, right? Versus the new day and
3:22:46new week, there's actual time in between
3:22:48the two for price to actually move up or
3:22:51move down in price to cause those gaps
3:22:53to get formed. So, with that being said,
3:22:55let's go ahead and look on the chart to
3:22:58show examples of this. This happens very
3:23:00very frequently. Okay, so we can I mean
3:23:03this is a good example right here. What
3:23:05do we see from this daily candle? Where
3:23:07do we close? We close down here and then
3:23:09boom, the new daily candle opens up
3:23:12here. And actually, what do we see from
3:23:13this daily candle? We come through and
3:23:15we fill this gap completely. So if we go
3:23:18here on the 4hour time frame, we can see
3:23:20that the daily candle closed right here
3:23:22at 1400 and then the new day candle
3:23:25opened up here at 1,800. And we can even
3:23:28scale down to the hourly time frame and
3:23:30show the exact moment. So the hour that
3:23:33is skipped is 1,700. We can see that
3:23:35this is the 1600 candle right here. This
3:23:38was the close. This is the next candle's
3:23:41open. And then boom, immediately right
3:23:43when the new day opens, what do we come
3:23:47down and do? We come down and we fill
3:23:48that gap. We can even scale down onto
3:23:50the 5minut time frame to show it a
3:23:53little bit better. We can see that boom,
3:23:55this is when the previous day closed.
3:23:56This is when the new day opened. What do
3:23:58we immediately do? We come down and we
3:24:00fill this gap. Now, again, this is
3:24:02during Asian session. So, I'm really
3:24:05never looking for these trades to be
3:24:07taken. That's kind of why I said that
3:24:10this is kind of hit or miss on when
3:24:12we're able to use it. However, new week
3:24:14opening gaps, we actually have more
3:24:17opportunity to be able to take advantage
3:24:20of that because typically the new week
3:24:22opening gaps are going to be a little
3:24:24bit larger and a little bit more drastic
3:24:26um and potentially creating a a bit more
3:24:30of a range um for us to be able to trade
3:24:32into. And maybe on Sun on Sunday open,
3:24:35we're trading pretty stagnant because
3:24:37again, it's Sunday. No new money from
3:24:39the US market has came into the market
3:24:40yet to be able to move it. So, it gives
3:24:42us an opportunity on Monday to either
3:24:44take a trade towards the new week
3:24:46opening gap or as an entry out of the
3:24:49new week opening gap. So, let's show an
3:24:53example right here. We can see that this
3:24:54is a very good example. We have boom,
3:24:56this was the weekly candlestick closure
3:24:59right here um from
3:25:02the week of Monday, October 20th. And
3:25:05then we can see that this week opened
3:25:07all the way up here. So, we have a huge
3:25:10weekly gap within here. And then if we
3:25:12go onto the daily time frame, what do we
3:25:14slowly but surely do? We can see that
3:25:17boom, the Friday, this was Friday's
3:25:19close. This is Sunday's open. And then
3:25:22from there, we slowly but surely come in
3:25:24to fill this gap. So in this this
3:25:27scenario, what would we have been
3:25:29looking for? We probably would have been
3:25:32looking at it like this. Boom. This was
3:25:34Sunday's close. This was Mon or sorry,
3:25:37this was Friday's close. This was
3:25:39Sunday's open. We trade up and then
3:25:42boom, what is this? This is around
3:25:46Wednesday, we get a liquidity sweep and
3:25:48then we go down to fill in this gap down
3:25:50here as a target. Okay, let's show one
3:25:54more example of a new week opening gap.
3:25:57Again, the odds of you guys using this
3:26:00is uh I mean, I don't want to say it's
3:26:03low, but very rarely. I will
3:26:07occasionally take trades um off of this.
3:26:10So boom, this is a good example right
3:26:13here. We have Friday's close and then we
3:26:14have Sunday's open and we can see that
3:26:17literally right when the market opens,
3:26:22boom, market opens, we immediately trade
3:26:24down, we fill this gap and then we
3:26:25continue higher. So in this case, this
3:26:27would be an entry point. But again, the
3:26:29odds of us trading on a Sunday, it's
3:26:31just not very likely. Um but again when
3:26:36we do have the off chance that these
3:26:39gaps don't get filled immediately cuz
3:26:41like I said price will very rapidly want
3:26:44to actively seek out these imbalances
3:26:46and fill them as soon as possible these
3:26:48gaps in the market. Um when we don't
3:26:51when we don't fill them and coming into
3:26:54Monday open then it's a very very good
3:26:56target. So that's new day new week
3:26:58opening gaps and then let's show an
3:27:00example of a new candle opening gap. Now
3:27:02again, like I said, these are pretty
3:27:05difficult to spot. Um, but we can try
3:27:09and find an example right here. So, this
3:27:11is a good example. We can see that boom,
3:27:14this candle closed right here. This is
3:27:17on the 1 minute chart. And then boom,
3:27:19this new candle opened right here. So,
3:27:22this is an imbalance. Once this
3:27:23candlestick closes, what do we
3:27:25immediately come up and do? We come up,
3:27:27fill it, and then continue a little bit
3:27:28lower. Okay, let's show another example.
3:27:32Um, this is a good example right here.
3:27:34We have the close and then we have the
3:27:37open. Okay, so there's a small gap
3:27:39within here. Once this candlestick
3:27:40closes, what do we immediately come up
3:27:42and do? We balance out price action.
3:27:44Again, the odds of you guys using this.
3:27:47As you can see, these are very
3:27:48microscopic, very, very small moves. Um,
3:27:53it's to keep it a buck, it's [ __ ]
3:27:55useless. Okay, so new candle opening
3:27:58gaps. There you go. Now you know it. You
3:27:59can show your grandparents and say,
3:28:00"Hey, I know what I'm talking about."
3:28:02And you're never going to use it again.
3:28:04Happy birthday. Okay. Next thing that
3:28:06we're going to be looking at is BPRs.
3:28:09Okay. We're going to be looking at BPR.
3:28:11So, what is a BPR? A BPR is essentially
3:28:14two sets of or pretty much imbalanced
3:28:18price range that we get a swift move
3:28:21down or a swift move up through and then
3:28:23followed by a swift move back up or down
3:28:26through. So, we actually had a couple
3:28:29good examples of this over the past
3:28:30couple days. I believe my trade
3:28:32yesterday, it was taken off of a BPR.
3:28:36So, matter of fact, let's just go to
3:28:38that. Um, let's just go to that and I
3:28:40can show you guys the example trade that
3:28:42I took. It was on Wednesday and it was a
3:28:45short position,
3:28:47I believe. Right.
3:28:52Did I take it on?
3:28:54Let's see.
3:28:56Wednesday, it was a long
3:29:00on the [snorts] S&P 500. When did I take
3:29:03it? At 9:36. Oh, wait. No, no, no, no,
3:29:06no. It was on Tuesday that I took the
3:29:09trade. It was on NASDAQ short. 10:41.
3:29:12There we go. NASDAQ. It was a short on
3:29:15Tuesday at 10:41. Let's try and find
3:29:18this thing. Tuesday.
3:29:22Yes. This is exactly look what I was
3:29:24looking for. Okay, cool. So,
3:29:30when we have
3:29:33So, this is kind of what I was talking
3:29:34about and I guess this kind of leads
3:29:36into what the extra stuff that I was
3:29:38talking about with fair value gaps. when
3:29:40we have all of these fair value gaps
3:29:43stocked up stacked up or even better if
3:29:47we can look at just this price action
3:29:52what do what do we see what do we see
3:29:54that price did here this was a very very
3:29:58rapid very very swift move up okay so
3:30:03what do we know about imbalance price
3:30:05action what do we know about these
3:30:06imbalance ranges we know that when they
3:30:09are recreated it means that there's okay
3:30:12in the bullish sense there's a lack of
3:30:16sell orders right so or there's just a
3:30:20lack of orders so we can see boom price
3:30:23what does what is price able to do boom
3:30:25rip right through it with the buy orders
3:30:27that were filled down here okay
3:30:30typically when we have a big swift move
3:30:36straight up or straight down
3:30:39When price re-enters that range, it will
3:30:42be able to one completely fill that
3:30:45range right back up, but also move just
3:30:47as swiftly down through it as it moved
3:30:51up. So, my trade on Tuesday was actually
3:30:55taken off of this. It was identifying
3:30:57that, hey, we have a very, very illquid
3:31:01price range right here. If price is able
3:31:04to start giving me some bearish
3:31:07confirmation, which it did up here, then
3:31:09I am going to look to take a trade all
3:31:12the way down to the bottom of this price
3:31:14action. Why? Because I know that this is
3:31:16a imbalanced price range. And two, I
3:31:19know that once price enters into this
3:31:21imbalance price r price range, just as
3:31:23how quickly price was able to move up
3:31:25through it, price is going to be able to
3:31:27move down through it very, very
3:31:29smoothly. And then once it gets filled,
3:31:31price will probably continue in the same
3:31:33direction that it was going. There you
3:31:35go. So
3:31:38this trade was taken. So this was taken
3:31:43on the creation of a BPR. So you're
3:31:46probably saying, what does a B what is a
3:31:48BPR? A BPR is essentially a illquid
3:31:51price range.
3:31:54Okay, that we can identify a swift move
3:31:57up and then also a swift move down. So,
3:32:01I don't want to get you guys like super
3:32:03confused or whatever like cause you guys
3:32:06to panic and freak out and think, "Oh my
3:32:08goodness, like I need to understand this
3:32:10because again, it's very most of these
3:32:13concepts I just want you guys to
3:32:14understand it and have it in your back
3:32:16pocket because if or when I take a trade
3:32:18like I did on Tuesday towards this, I
3:32:20want you guys to be able to understand
3:32:21it." And I also again like I'm teaching
3:32:24you guys all of these advanced concepts
3:32:26because I feel feel like you guys need
3:32:28them, okay? Because there is off chances
3:32:32that these things happen. Okay? So a BPR
3:32:35is when we have a swift move up through
3:32:37imbalanced price action and then we have
3:32:39a swift move down through imbalanced
3:32:41price action and then from there we can
3:32:43just identify this entire range as
3:32:45imbalanced price. Okay. So how can we
3:32:48use this to our advantage? Well, there's
3:32:51one thing. When we see the swift move
3:32:52up, we can use it as a target knowing
3:32:55that, hey, once we enter back into this
3:32:57range, we are going to move very swiftly
3:32:58to the bottom of the range that was
3:33:02created on that swift move up either as
3:33:05a target or we can use it as an entry
3:33:08point. Once we fill back in this big
3:33:11range, which again is pretty much an
3:33:13imbalance, we can look for a
3:33:15continuation out of it. So we can see a
3:33:16break structure to the upside and then
3:33:17we see a retrace down and then price
3:33:19continues higher.
3:33:21Okay. So let me show you guys more
3:33:23examples of these BPRs and how they can
3:33:26be beneficial to us.
3:33:29So this is another good example right
3:33:31here. What do we see? A very swift move
3:33:34down through here. So what do we know
3:33:36about
3:33:38pretty much from here all the way
3:33:40across? This is a very imbalanced price
3:33:42range. So, I'm pretty sure I took a
3:33:45trade off of this as well. When was
3:33:46this? Uh, no, this was in December. But
3:33:49let's look right here. Where does this
3:33:51imbalance price range or look boom big
3:33:55dump down? Where does price finally
3:33:57start to like regain its senses? Right
3:34:00down here. So, we know, okay,
3:34:02realistically, we can kind of we can
3:34:03drag this higher, but realistically,
3:34:05when did the dump down start? Boom. From
3:34:07this low, we fled down. Boom. Flood
3:34:10down. Awesome. This entire range is
3:34:14imbalanced.
3:34:16And then what do we notice right when we
3:34:18crack above
3:34:20these highs right here? Like literally
3:34:23right when we push above these highs,
3:34:26look at these highs right here. The
3:34:28second that we push our head above these
3:34:30highs, bow, rapid fire, straight up
3:34:34through the imbalance. And we can even
3:34:36narrow this down to two sets of
3:34:37imbalances or two sets of very illquid
3:34:40price ranges. This is a set of this is a
3:34:44illquid price range.
3:34:46And then this is an illquid price range.
3:34:48And notice how price comes up, fills the
3:34:50illquid price range. Okay? Balances out
3:34:53a little bit. Price comes down, fills in
3:34:56this illquid price range. And then boom,
3:34:58we bounce back up, fills in this illquid
3:35:00price range. Okay? And then we can even
3:35:03notice look look look
3:35:06we can even notice it within the same
3:35:08moves like this this whole price range
3:35:11was so illquid cuz you can see boom what
3:35:15happens even within there
3:35:18rapid move up and then once price pushes
3:35:20underneath these lows boom rapid move
3:35:22down balances it out and then boom we
3:35:25finally start trading back to normal
3:35:26again. You are going to see this very
3:35:28very frequently on your guys' charts.
3:35:30So, how is this going to be beneficial
3:35:32for you? Just like I said, well, we can
3:35:34use it either as finding an entry point
3:35:37and then understanding that, hey, once
3:35:38we push into this illquid price range,
3:35:40boom, we're going to rapid fire all the
3:35:43way up to be able to balance out this
3:35:45illquid price range. So, we can boom,
3:35:46try and find some sort of bullish
3:35:48confirmation down here to take a trade
3:35:50up to be able to balance this out.
3:35:54Or you can just look for it for
3:35:56confirmation. like maybe you see, okay,
3:35:58boom, price came up, balanced out this
3:36:00price action. Now, I'm going to be
3:36:02looking for shorts to come back down and
3:36:03balance out this price action. Again,
3:36:05we're going to get into how we can put
3:36:07all of these confluences together for
3:36:10you guys um in a proper strategy, but uh
3:36:15this is I'm just kind of like I'm
3:36:18spitballing here so you guys can
3:36:19understand again. Okay, like this is
3:36:22again it's very very obvious. Look,
3:36:24rapid fire move up. What is going to
3:36:27happen once we crack back underneath
3:36:28these lows? Rapid fire move down. And
3:36:30then look at this. What do we have?
3:36:32Massive BPR. We have a boom rapid move
3:36:35up. Boom. Rapid move down. Okay, this is
3:36:38our this is our imbalance price range.
3:36:41And it's really
3:36:44from here. So, what do we see the second
3:36:46that price is able to push above this
3:36:48high? What does it do? Rips all the way
3:36:51up through it. Rips all the way up
3:36:53through it to balance it out. We can I
3:36:56mean it's it's I bro like do I even have
3:36:58to explain myself anymore?
3:37:01Huge imbalance price range. What do we
3:37:03do the second that we push underneath
3:37:05these lows?
3:37:07Rapid fire all the way through it. Same
3:37:09like it's it's [ __ ] everywhere. Okay.
3:37:13Rapid move up. The second that we push
3:37:15underneath these lows, boom, rapid move
3:37:16down. It is everywhere. And you can use
3:37:19these to your advantage. Okay. Boom.
3:37:22Rapid move down. Once we push above
3:37:24these highs, boom, rapid move up. It's
3:37:27beautiful.
3:37:28Okay. Um, same thing here. What do we
3:37:32have? Rapid move up. What do we do?
3:37:34Rapid move down. Illquid price range
3:37:37that we can use either to boom, if we're
3:37:39taking shorts off of this, we can use it
3:37:41to target to understand that, hey, price
3:37:43is probably going to want to balance out
3:37:45this entire imbalance range and then
3:37:46from there do whatever it wants to do or
3:37:48you can look to take a trade off of it.
3:37:50Um, I mean, I feel like I've explained
3:37:53myself pretty thoroughly on on this.
3:37:56Again, sometimes they don't necessarily
3:37:58completely overlap, but we can see this
3:38:00is a good example again from here down
3:38:03to here. Boom. Price fills this,
3:38:06consolidates a little bit, and then
3:38:07boom, rapid fire straight back through
3:38:09it.
3:38:11Same thing right here. I mean, we can do
3:38:12this all day long. Boom. We have an
3:38:14imbalanced price range right here. What
3:38:16do we do? Rapid fire through it. And
3:38:18then we can go back.
3:38:21Boom. Rapid fire right back through it.
3:38:23And then boom, what do we do? Rapid fire
3:38:25right back through this. Very, very
3:38:28beneficial concept. I'm like literally
3:38:30just as we are scrolling, we see it all
3:38:32the time. Boom, rapid move up. Boom,
3:38:34rapid move down. You can use it to
3:38:36either look for entries or use it as
3:38:38targets. So that's BPR. Um, and that's
3:38:41pretty much what I wanted to cover in
3:38:42terms of the fair value gaps. Um, and
3:38:46yeah, really the last thing that we need
3:38:48to cover with imbalances is inverse fair
3:38:50value gaps and that's going to be
3:38:51tomorrow.
3:38:53Welcome to inverse for value gaps
3:38:57explained. Okay, so we talked about fair
3:39:00value gaps two days ago. Today we're
3:39:03talking about inverse for value gaps.
3:39:05Yesterday we talked about advanced
3:39:07imbalance concepts. So with that being
3:39:10said, let's jump straight into this. So,
3:39:13as we remember fair value gaps, what do
3:39:16they do? We've kind of established I
3:39:18hopefully we can start laying and now
3:39:21that we have a couple confluences under
3:39:24our belt, I would like to be start
3:39:26classifying each one of these
3:39:28confluences. So, first liquidity. Okay,
3:39:32for me this is just like the reversal
3:39:35confluence, right? Because price has the
3:39:37opportunity to fill orders, right? to be
3:39:41able to start a reversal when we push up
3:39:44above or below a draw on liquidity.
3:39:46Because again, if we're in an uptrend
3:39:48and we push above a high, what do we
3:39:50have the opportunity to do? Boom. Fill
3:39:53some orders above here and then cause
3:39:55price to go lower. Or if we're in an
3:39:57uptrend and then there's a high time
3:39:59frame high right here and then we push
3:40:00above it, we have the opportunity to
3:40:03potentially cause a reversal. So
3:40:06liquidity is step one of our strategy.
3:40:08Now again, I'm not going to get in depth
3:40:10into our strategy just yet, but I want
3:40:12to start classifying all the confluences
3:40:14that we've learned thus far. So
3:40:16liquidity, what does that correlate to
3:40:18the reversal? As you guys know, I would
3:40:20much rather sell the top and be buying
3:40:22the bottoms of every single move because
3:40:25that's going to give us a better
3:40:26risk-to-reward. That's going to give us
3:40:28higher odds and better chances of being
3:40:30correct about the overall move as well.
3:40:32From there, we are going to be looking
3:40:34for a change in trend. So, so far what
3:40:38confluences do we know or have we
3:40:41learned that helps us identify a change
3:40:42in trend? Well, breakup structure or we
3:40:45can just abbreviate it to BOS. Okay,
3:40:48breakup structure for me this is giving
3:40:50me this I call a confirmation
3:40:54confluence. Why do I call it a
3:40:55confirmation confluence? Because it's
3:40:57saying, hey, we pushed above a area that
3:41:01we could potentially fill orders at. We
3:41:05pushed above an area that we could
3:41:06potentially fill orders at. And then
3:41:09when we get the break of structure, what
3:41:10does that tell me? It confirms to me
3:41:13that orders were filled above this high
3:41:16right here, above the liquidity sweep.
3:41:18Because again, what do we know about
3:41:20liquidity? Price just has the
3:41:22opportunity to fill orders above highs
3:41:25and below lows. It doesn't mean that
3:41:28price has to fill orders. It just means
3:41:30price has the opportunity. So how do we
3:41:32confirm that price actually took that
3:41:35opportunity and wants to cause the
3:41:37reversal? We see a change in trend
3:41:39through break of structure. Now that's
3:41:41the only confirmation confluence that we
3:41:43know for now. And then just recently we
3:41:46learned a continuation confluence
3:41:48through fair value gaps. So what are
3:41:53sorry I can't talk and type at the same
3:41:54time. So what are fair value gaps? Well
3:41:57let's think about it again. Liquidity
3:42:00gives us the opportunity to reverse. So
3:42:02if we're in an uptrend and then boom, we
3:42:04push above this high. Awesome. We have
3:42:06the opportunity to reverse and then
3:42:08boom, we break structure to the
3:42:10downside. Awesome. We get confirmation
3:42:13that the trend has broken. What do I
3:42:15need? Because I like to be extra safe
3:42:18about my trades. And I mean, you guys
3:42:20should be too because eventually we're
3:42:22going to be risking our hardearned money
3:42:24on on on these trades. in our strategy
3:42:28better be [ __ ] airtight. Okay, I'm
3:42:30not just going to be taking a trade off
3:42:32of us pushing above a high and then
3:42:34breaking structure to the downside
3:42:36because guess what? This could just be a
3:42:38higher time frame retrace, right? And
3:42:40then price could just boom go all the
3:42:42way up from here. So, what do I need? I
3:42:44need to show proof that the new trend
3:42:47that we are starting like this downtrend
3:42:50is going to continue. How do we identify
3:42:53a continuation of the downtrend?
3:42:55downtrend. Right now the only
3:42:57continuation confluence that we know is
3:42:59fair value gaps. Okay. So in this case
3:43:02we get boom we push up into liquidity.
3:43:05We get the confirmation and as of 2 days
3:43:09ago we learned fair value gap. So if
3:43:11there's a fair value gap right here boom
3:43:13we push into the fair value gap and then
3:43:14we see a continuation of the trend.
3:43:16Again opportunity to fill orders
3:43:19confirmation that orders have been
3:43:20filled and then confirmation that the
3:43:22trend is going to continue down.
3:43:24Hopefully you guys are now seeing how
3:43:26this is a very very optimal trade entry
3:43:28to then be targeting other draws on
3:43:30liquidity over here to the left hand
3:43:33side. Now with all of that understood
3:43:38today we are going to learn another
3:43:41confirmation confluence and it's
3:43:43actually believe it or not using fair
3:43:45value gaps because again if we think
3:43:47about it what are fair value gaps
3:43:49supposed to do? They are supposed to
3:43:51show us continuation of a trend. So, if
3:43:53we have a fair value gap right here that
3:43:55gets filled and then we push up higher,
3:43:57it's showing a it's showing
3:43:58continuation.
3:44:00What else do we know?
3:44:03What happens if a trend doesn't
3:44:05continue?
3:44:07Then it's pretty freaking obvious that
3:44:09price is going to start a new trend. So,
3:44:11what happens if we inverse or if we
3:44:15disrespect a fair value gap that's
3:44:17within a current uptrend? What if we
3:44:19have a fair value gap right here and
3:44:21price comes down and closes underneath
3:44:23it? Well, that's not what continuation
3:44:26confluences are supposed to do. Price is
3:44:28supposed to come into this continuation
3:44:30confluence and move higher. So, why is
3:44:32price pushing and closing underneath
3:44:34this continuation confluence? Maybe
3:44:36because price is actually changing
3:44:39direction and this is giving us a
3:44:40confirmation confluence that price is
3:44:42going to go lower and this is going to
3:44:44be a change in trend and that is all
3:44:45inverse for value gaps are. Now, we
3:44:47already know how to identify fair value
3:44:49gaps. So, we're just going to jump
3:44:51straight to the chart and I'm going to
3:44:52show you guys examples of this. All an
3:44:54inverse fair value gap is is a fair
3:44:57value gap that gets disrespected within
3:45:00the current trend that it's in and we
3:45:01can use it as a break of structure or as
3:45:04a confirmation confluence. So, let's get
3:45:08in here and let's find an example for
3:45:11us. We can go.
3:45:16Let's see. Where's a good Where's a good
3:45:18one? Where's a good one? This is a good
3:45:21example right here. Boom. Let's look at
3:45:23this 4our price action. Okay. Price
3:45:27comes down. We break structure to the
3:45:29downside right here. Right. This is the
3:45:30most recent low. We get a closer
3:45:31underneath it. Awesome. Cool. We're in a
3:45:35downtrend at this point in time. And oh,
3:45:38what do what do we see? Awesome. We have
3:45:40a bearish fair value gap right here.
3:45:42What does price do? Price comes up and
3:45:44then what do we end up doing? We end up
3:45:46inversing this fair value gap. So in
3:45:48turn, we were in a downtrend because we
3:45:50closed underneath this low. But now that
3:45:53we close above this fair value gap,
3:45:57inversing the continuation confluence
3:45:59that realistically should have sent
3:46:02price lower, but instead didn't. Then
3:46:05what does that cause price to do? Slowly
3:46:07but surely move higher. We inverse this
3:46:09gap. Price comes down, retraces, and
3:46:11then we continue with the uptrend. We
3:46:13get a high, we get a higher low, we get
3:46:15a higher high, we get a higher low, we
3:46:17get a higher high, we get a higher low,
3:46:18higher high, higher low, etc. That's one
3:46:21example. Let's show an example to the
3:46:26downside. And the nice thing about
3:46:29inverse for value gaps is I want to find
3:46:32an example where we are able to use this
3:46:35to our advantage before we are able to
3:46:39find a break of structure. Now that's
3:46:41why this is very useful and you're again
3:46:44you're probably saying well why would we
3:46:45want to use this when we could just use
3:46:46break of structure? Well, that's the
3:46:48thing. Sometimes, like in this case, we
3:46:52can look and identify a change in order
3:46:56flow before we actually get the break of
3:46:58structure. So, notice right here, we are
3:47:00in an uptrend, right? We closed above
3:47:02the most recent high to confirm that
3:47:03we're in an uptrend. So, if we're
3:47:04looking for a break of structure to the
3:47:06downside, we are going to be monitoring
3:47:08this low, right? This is the most recent
3:47:10low. But now with this newfound
3:47:13confluence of fair value gaps and
3:47:15inverse fair value gaps, we have a
3:47:16bullish fair value gap right here. So
3:47:18realistically, if this trend wants to or
3:47:21is supposed to continue higher, we
3:47:24should respect this fair value gap and
3:47:26continue higher. Why? Because it's a
3:47:28continuation confluence. This is the
3:47:30last form of imbalance price on this
3:47:33time frame that price needs to tap into
3:47:35to continue higher. When do we
3:47:38invalidate this gap? Is it on this
3:47:40candle? though when we get a candlestick
3:47:43closure underneath the bottom of the
3:47:46bullish for value gap, right? Because
3:47:47this invalidates the bullish for value
3:47:49gap. We're getting a candlestick closure
3:47:51underneath it. Awesome. Now, once this
3:47:54candle closes, we know that price is
3:47:56probably going to turn into a downtrend.
3:47:58And look at that, it does. However, if
3:48:00we only had the confluence of break of
3:48:03structure, we probably would have had we
3:48:05would have had to wait for another 4hour
3:48:07candle to form until we got underneath
3:48:10this. And now this is why you guys can
3:48:12hopefully see how important having this
3:48:14confluence is because we were able to
3:48:17enter up here instead of having to wait
3:48:20till all the way down here. That's an
3:48:21extra 68 ticks. And that could literally
3:48:24be make or break for us on having a
3:48:27better risk-to-reward, having a better
3:48:28win rate, okay, by being able to execute
3:48:31right here. Because if we took a short
3:48:33position right here and target these
3:48:37lows, this is a pretty good
3:48:38risk-to-reward. This is a 1 to 1 point 1
3:48:411.3 risk-to-reward ratio by entering
3:48:43right here and then targeting this draw
3:48:45in liquidity and then targeting these
3:48:47draws in liquidity right here. We have a
3:48:501:2 risk-to-reward. However, what would
3:48:54happen or what could potentially happen
3:48:57if we didn't know about inverse for
3:49:00value gaps and we had to enter on this
3:49:02break of structure. Look how drastic
3:49:05that changes our risk-to-reward, but
3:49:07also how how much larger it makes our
3:49:09stop loss. This makes my stop loss
3:49:11literally two times the size and now
3:49:14makes me have a risk-to-reward that's
3:49:16not even 120.5.
3:49:20Meaning, if I'm risking $1,000, I'll
3:49:23only be able to make $450. That's
3:49:26horrible, right? versus if I take this
3:49:30trade up here, if I'm risking $1,000,
3:49:32I'll be able to make $1,300.
3:49:35That's a little bit better. Okay. So,
3:49:38again, having this as another
3:49:41confirmation confluence. Again, we you
3:49:43you guys don't necessarily know how to
3:49:45put these pieces together just now. And
3:49:48we can't just be t sell positions on
3:49:51inverse fair for value gaps to the
3:49:53downside and taking buy positions to
3:49:55inverse fair for value gaps to the
3:49:56upside willy-nilly and just expecting
3:49:58for price to go in our direction.
3:50:00However, this is a very very key
3:50:03confluence that is going to be
3:50:04beneficial for you guys down the line in
3:50:07helping understand our strategy because
3:50:08I use this confluence almost every
3:50:10single day almost more than break of
3:50:13structure because more often than not it
3:50:16happens before break of structure is
3:50:17even do like again I'm looking at this
3:50:20this is another very good example right
3:50:22here boom what do we have we have a
3:50:24bearish for value gap right here what
3:50:26does price do we close above it and
3:50:29notice This again, this is the high that
3:50:31we were monitoring for us to have a
3:50:33break of structure. We fully would have
3:50:35had to wait for another 4hour candle.
3:50:37And look at the difference. Boom. We
3:50:40could have entered this trade right here
3:50:41compared to having to wait for a break
3:50:43of structure all the way up here. That's
3:50:45123 ticks that we literally are chopping
3:50:48off from our trade by not knowing this
3:50:50confluence. So, this confluence is very,
3:50:52very useful, very, very helpful for us.
3:50:54I use it on a daily basis. So, make sure
3:50:56that we understand this. Now, there's
3:50:58going to be some caveats with this, so
3:51:00I'm going to get into it um with like
3:51:02when we have multiple fair value gaps
3:51:04stacked on top of each other, and then
3:51:05we're going to wrap it up today. Okay.
3:51:13All right.
3:51:19Now, you're probably saying, "Well, TJR,
3:51:21remember when you were telling us all
3:51:24about how when we have multiple fair
3:51:27value gaps stacked up up on top on top
3:51:30of each other, all of them are valid and
3:51:32it just depends on which one it wants to
3:51:34push into and um if it pushes into one
3:51:37of them and then ends up going higher,
3:51:38then all of the other ones that were
3:51:40underneath end up getting invalidated,
3:51:42blah blah blah blah blah." Yes, I do
3:51:44remember that. So, let's show examples
3:51:46of this and show you guys how to be able
3:51:48to tell which one is actually going to
3:51:51be the invalidation point of a stack of
3:51:54fair value gaps. Okay, I'm trying to
3:51:56find a good example for you guys where
3:51:59we have a couple fair value gaps stacked
3:52:01up on top of each other without getting
3:52:04a breaker structure first. Um,
3:52:08okay, this is a good example right here.
3:52:12So, in this case, oh, is this a fair
3:52:14value? Yeah, barely. Okay, cool. So, in
3:52:17this case, what are we in? We are in a
3:52:19uptrend, right? We are closing above
3:52:22most recent highs. So, we know that
3:52:23we're making higher highs. Awesome.
3:52:25We're in an uptrend.
3:52:28Okay. So, in this case, we have two fair
3:52:30value gaps stacked up on on top of each
3:52:32other. Again, how do we identify this as
3:52:35just fully these two are together in
3:52:37imbalanced price action because there's
3:52:39no retrace in between these candles. So
3:52:41again, we have a fair value gap followed
3:52:44immediately by another fair value gap.
3:52:46There's no black candle in between it.
3:52:49Awesome. These two are grouped together.
3:52:51Now, let's look at this and let's have
3:52:54let's sit here and let's look to be able
3:52:57to identify what fair value gap do we
3:53:01wait for and what fair value gap do we
3:53:03look to get invalidated when we're
3:53:06looking for an inverse fair value gap.
3:53:08Cuz now in this case, we have two fair
3:53:10value gaps that we could potentially use
3:53:11that we could potentially retrace off
3:53:13of. Well, if you think back to me
3:53:16explaining fair value gaps in this
3:53:17concept, right? Price could come into
3:53:20this imbalanced price range and it could
3:53:22push higher, right? And then from there,
3:53:25we no longer need this imbalanced price
3:53:27range. Why? Because price came down to
3:53:29this imbalanced price range, said, "Yep,
3:53:32that's enough. That's all I needed to do
3:53:33to to balance out price, and I want to
3:53:35move higher."
3:53:37But what does price also still
3:53:40potentially have the opportunity to do?
3:53:43It can still close underneath this fair
3:53:46value gap, come down, fill this one, and
3:53:49push price higher.
3:53:51Hopefully that explanation helped you
3:53:53understand what fair value gap needs to
3:53:56be inversed when we have a stack of them
3:53:59for this to be a proper confir
3:54:02confirmation confluence.
3:54:05It's going to be the bottom fair value
3:54:08gap when we are looking for inverses to
3:54:10the downside. Okay, so the bottom fair
3:54:13value gap when we have multiple fair
3:54:15value gaps stacked up on top of each
3:54:16other needs to be inverse. Why? Because
3:54:20price closing underneath this fair value
3:54:22gap and in this case we closed
3:54:23underneath both of them but I wish there
3:54:25were this candle ended like right here
3:54:27because price closing underneath this
3:54:29fair value gap it doesn't mean anything.
3:54:32Why? because we can still come down and
3:54:35fill this gap to push price higher
3:54:37because this is still a valid imbalance
3:54:41price range. Again, like I was telling
3:54:42you guys 2 days ago, price can come down
3:54:45and fill in this gap and then push push
3:54:49higher. Okay. So, me looking at this,
3:54:52I'm like, okay, we need to wait for not
3:54:56this gap to get closed underneath in
3:54:58order for me to flip bearish, but this
3:55:00gap to get closed underneath because
3:55:02this is the last fair value gap that is
3:55:05holding up the trend, right? If this
3:55:08fair value gap gets inverse, it's not a
3:55:10problem, right? Because the trend could
3:55:12still continue off of this one. However,
3:55:14if this one gets inverse, then this 100%
3:55:18means that boom, the trend is gone. And
3:55:19what do we see? We see price barely
3:55:21close underneath it and then price cons
3:55:23ends up going lower for a little bit.
3:55:26Okay,
3:55:27let me show you guys another example of
3:55:29this of stacked up fair value gaps.
3:55:32Okay, so this is a good example
3:55:35right here. So again, let's see. We're
3:55:38in an uptrend here, right? And we have
3:55:41two fair value gaps that are stacked up
3:55:43on top of each other. We have this gap
3:55:45immediately followed by this gap. Again,
3:55:47there's no retrace in between. There's
3:55:48no price showing us that we balance out
3:55:51these price ranges yet. So awesome. We
3:55:53know that from here up to here, this
3:55:55imbalance price. We see price come down
3:55:58and then what do we do? We close
3:55:59underneath this gap right here. So what
3:56:02does that mean? Does that that mean oh
3:56:04no, price is actually going into a
3:56:06downtrend? No. Why? because price still
3:56:11has the opportunity to one m maintain
3:56:16the bullish trend that we're in. How do
3:56:18we know that we're in an uptrend?
3:56:19Because we closed above the most recent
3:56:20high. We haven't broken into a downtrend
3:56:23just yet. So awesome. Us closing below
3:56:27this for value gap right here doesn't
3:56:30mean anything. Why? Because price can
3:56:32very well continue the trend out of this
3:56:34gap because these gaps are stacked up.
3:56:37So if I wanted to see a inverse or a
3:56:41confirmation confluence by using a
3:56:43inverse fair value gap, what fair value
3:56:45gap would I have to wait for in the
3:56:48stack of these fair value gaps? I would
3:56:50have to wait for a closure underneath
3:56:52this gap. Okay, now obviously that is
3:56:55going to take a lot, but that just shows
3:56:57an example of us having a stack of two
3:57:00fair value gaps. the first one getting
3:57:02closed underneath, but us still be able
3:57:04still not being able to classify it as a
3:57:08full inverse. Because if we wanted an
3:57:10inverse, we would be looking for this
3:57:12gap to get closed underneath, not this
3:57:14one. Because again, if this one gets
3:57:16closed underneath, doesn't matter. The
3:57:18trend is still intact. We can still use
3:57:20this one in our favor.
3:57:24All right,
3:57:27this isn't an an example of a stack, but
3:57:29this is a good example for us to look
3:57:30at. So, right here, what are we in
3:57:33currently? We're in a downtrend. We have
3:57:35a high. We have a low, lower high, lower
3:57:37low. We close underneath the most recent
3:57:38low. We're in a downtrend, right? What
3:57:40do we have right here? We have a
3:57:41continuation confluence at least that we
3:57:43could be potentially looking at for
3:57:45price to come in, fill, and push lower,
3:57:48right? But what happens? Price comes up.
3:57:50We get a candle closure within this fair
3:57:53value gap. Is this on this candlestick
3:57:55closure right here a inverse for value
3:57:57gap? No. Even though we pushed a wick
3:58:00above this fair value gap, it is not a
3:58:02inverse for value gap until we get a
3:58:04full candlestick closure above the gap.
3:58:07Just like with breaker structure, we
3:58:08need to wait for a full candlestick
3:58:10closure above the gap. So when do we get
3:58:12that? On this candlestick and then from
3:58:14there we can see awesome this trend has
3:58:18reversed. And then what do we see? Boom.
3:58:20We see price come down, fill this gap,
3:58:22and then move higher. Come down, fill
3:58:25this gap, move higher, come down, fills
3:58:28this gap, moves higher. We can see the
3:58:30trend being formed in these imbalances
3:58:32being created and being respected on our
3:58:35way up after getting a inverse of this
3:58:38gap and an inverse of our previously
3:58:40continuation confluence, which now turns
3:58:43into a confirmation confluence.
3:58:45So hopefully you guys understand inverse
3:58:48for value gaps. Now, that is another one
3:58:50of our confirmation confluences that I
3:58:52use literally every single day, okay?
3:58:56Um, it's very, very important that you
3:58:58guys understand this concept. So, if you
3:59:00guys don't necessarily understand it
3:59:02just yet, you guys will probably be able
3:59:03to get it a little bit more as we go
3:59:05through this series and as I show you
3:59:06guys more examples of it, um, and it
3:59:08being used in real time, whether you
3:59:10guys are watching my trade recaps or
3:59:11not. Um, but this is a very, very
3:59:14important confluence for you guys to
3:59:16learn. And with that being said, we are
3:59:18going to introduce another continuation
3:59:21confluence. So now we know two
3:59:23confirmation confluences. We have
3:59:25breakup structure and inverse fair value
3:59:27gaps. And right now we have one
3:59:29continuation confluence which is fair
3:59:31for value gaps. The next continuation
3:59:34confluence that we are going to learn is
3:59:36equilibrium. I'm going to teach that to
3:59:38you guys tomorrow. So with that being
3:59:40said, I love and appreciate you guys.
3:59:41I'll see you guys tomorrow. What up?
3:59:44What up? Let's get into equilibrium
3:59:47explained. This is going to be another
3:59:50one of our continuation
3:59:53confluences. Okay, this is probably the
3:59:57easiest confluence to grasp. Yet
3:59:59somehow,
4:00:02I don't understand it. I literally don't
4:00:05not understand it how you guys still
4:00:07seem to mark out equilibrium
4:00:09incorrectly. So, I'm going to make an
4:00:11attempt. I'm trying I'm going to try not
4:00:14to blow my brains out. Be just thinking
4:00:17about some people and some examples that
4:00:19I've seen of people marking out
4:00:20equilibrium in the past, but it's so
4:00:22[ __ ] easy. Don't [ __ ] it up and just
4:00:25listen to what I'm saying. What is
4:00:27equilibrium and why is it beneficial for
4:00:30us? It's a continuation confluence. So,
4:00:32what does it show us? It shows us the
4:00:34opportunity to continue a trend. Okay,
4:00:38equilibrium. I like to use a GAN box to
4:00:43be able to to determine it. All that
4:00:46equilibrium is is
4:00:49all that equilibrium it all that the
4:00:53definition of equilibrium helps us
4:00:57identify premium and discount ranges
4:01:00within the current trend that we are in.
4:01:03So let's say that we are in a uptrend.
4:01:06Let me get rid of this GAN box for a
4:01:08second. And I'll show you guys my
4:01:09settings on that as well so you guys can
4:01:10copy it. But let's say that we are in an
4:01:14uptrend, right? We have boom, a move up,
4:01:17then boom, a move down, boom, a move up.
4:01:21Right now, what are we currently in? We
4:01:23are currently in a premium, right? When
4:01:26we're in an uptrend, when we finish our
4:01:29extension, we are going to be in an in a
4:01:32premium. So what equilibrium allows us
4:01:35to do is it helps us identify the
4:01:38premium and the discount of the current
4:01:40range that we are trading in. So in this
4:01:42case, if we are trying to take a buy
4:01:45position on within this uptrend that
4:01:48we're in, it would be pretty ideal for
4:01:51us to not want to press buy anything
4:01:53above this line, which is equilibrium.
4:01:58because down here is a discounted price
4:02:01range with from this swing low up to
4:02:03this swing high and up here is a premium
4:02:07price range from this swing low to this
4:02:09swing high. Now again, let's think about
4:02:11the market makers again because that's
4:02:13who we're trying to trade like that's
4:02:15who we're trying to trade with. Are they
4:02:18going to be looking to top blast their
4:02:20own positions up here and take take
4:02:23longs right there? No. They want to push
4:02:25price into a discounted price range and
4:02:27then they're going to buy up all the
4:02:28shares to be able to push price higher.
4:02:30So in this case, right, if as we see
4:02:33price coming down, do we want to be
4:02:35bidding this? Do we want to be bidding
4:02:37this? No. No, no, no, no. Boom. We push
4:02:39past equilibrium. Now we're in a
4:02:41discounted price range for longs. What
4:02:44do we want to look for? We want to look
4:02:46for potential buys. And the market
4:02:49makers want to do the same. This is a
4:02:51very, very simple confluence. All that
4:02:52it does is it identifies the 50% mark
4:02:55from the most recent swing low up to the
4:02:57most recent swing high within a trend as
4:03:00a continuation confluence. And once we
4:03:02push underneath equilibrium and then we
4:03:04can get some bullish confluences out of
4:03:06it. We can say awesome, we pushed into a
4:03:08discounted price range. Now we're
4:03:09trading back into a premium price range,
4:03:12we know that buy orders were filled
4:03:13underneath here. So price is probably
4:03:15going to continue the trend higher and
4:03:16push past this high. Okay. Now again, if
4:03:19we think about our strategy and we think
4:03:21about when we put all of these things
4:03:23together, how is this beneficial to us?
4:03:25Okay. Well, let's just walk through it.
4:03:27What confluences do we have? Well, we
4:03:30have liquidity, right? The opportunity
4:03:32for us to fill orders. So, if we're in
4:03:34an uptrend and then boom, we push above
4:03:36a draw on liquidity and then price says,
4:03:38"Hey, I'm going to take this
4:03:39opportunity. What am I going to do? What
4:03:41did we learn yesterday?" Awesome.
4:03:43Inverse for value gap. So, let's use
4:03:44this as an example. We end up inversing
4:03:47this fair value gap right here showing
4:03:49us, hey, we have the opportunity to fill
4:03:52orders through liquidity. We get
4:03:54confirmation that we're filling those
4:03:56orders because we are not continuing the
4:03:58uptrend by inversing this fair value
4:04:01gap. Then from there, what can we look
4:04:03for as a potential continuation
4:04:05confluence? Either a fair value gap or
4:04:08equilibrium. Now price is able to come
4:04:11up, fill a discounted price range, and
4:04:14then move down out of that discounted
4:04:16price range. Awesome. We can take shorts
4:04:18off of that. Why? Because we had the the
4:04:20opportunity to fill orders. We confirmed
4:04:22that orders were filled through a
4:04:24confirmation confluence and then we're
4:04:26waiting for a continuation of the
4:04:27current trend that is forming.
4:04:29Beautiful, beautiful, beautiful,
4:04:31beautiful. Okay. So again, how do we
4:04:34mark out equilibrium? It is very simple.
4:04:37When we are in an uptrend, we take it
4:04:39from the most recent low. Listen to me
4:04:43because this is where every [ __ ]
4:04:46idiot [ __ ] this [ __ ] up and it pisses
4:04:49me off. It
4:04:53It pisses me off.
4:04:55So listen, it literally makes me want to
4:04:59punch a hole through my screen. How it's
4:05:01the easiest confluence on earth. the
4:05:04most recent low to the most recent high.
4:05:09If there's a low right here that's
4:05:12connected to this high, do we draw
4:05:13equilibrium from this low up to this
4:05:15high?
4:05:18[screaming]
4:05:18No.
4:05:20No, we don't. We draw it from the most
4:05:23recent low up to the most recent high.
4:05:27Okay?
4:05:28So if we are in an uptrend and we have
4:05:32this boom, what do we take it from? We
4:05:35take it from the most recent low up to
4:05:38the most recent high that was formed.
4:05:40Okay, if we do something like this, do
4:05:44we take it from this low up to this
4:05:46high?
4:05:48No,
4:05:51we don't. And and you're probably
4:05:53saying, "Yeah, TJ, let's get to the
4:05:55charts." You guys are idiots. Sometimes
4:05:59you guys are such freaking idiots
4:06:00sometimes that this is actually an
4:06:02issue.
4:06:04I'm sorry. I I like I love you guys. I'm
4:06:06trying to teach you, but holy crap. The
4:06:08most recent low. So, where's the most
4:06:11recent low? It's this one. Where's the
4:06:13low? It's this one. Up to the most
4:06:15recent high. Awesome. That's how we
4:06:18market. Is it from this low to this
4:06:20high?
4:06:22[clears throat] M no,
4:06:25it's the most recent low to the most
4:06:27recent high. Okay, you're literally just
4:06:29following the trend. Okay. And then for
4:06:32a downtrend, it's from the most recent
4:06:35high down to the most recent low. So if
4:06:38this is our downtrend, do we take it
4:06:40from this high down to this low? No. We
4:06:44take it from the most recent high down
4:06:46to the most recent low.
4:06:50We're looking for price to come up. And
4:06:52in this case, this is a premium price
4:06:56range and this is a discounted price
4:06:58range. You're probably saying, "Well, I
4:07:00thought the market makers don't like
4:07:01premium price ranges." Well, in this
4:07:03case, the premium is actually the the
4:07:06discount because the premium we want to
4:07:09be trading into a premium so that we can
4:07:11take shorts because we want price to go
4:07:13lower. Okay. But we take it from the
4:07:16most recent high down to the most recent
4:07:18low. Cool. Let's show examples of this
4:07:22happening. This is very very easy, very
4:07:24very simple. Happens all the time. We
4:07:28can show you guys this happening on the
4:07:31weekly time frame. Okay. So, let's see
4:07:33here. From this most recent low up to
4:07:37this most recent high, what do we do? We
4:07:39come down, poke our head underneath the
4:07:40discounted price range. Now, we're
4:07:42getting continuation higher back above
4:07:44this high. Beautiful.
4:07:46Let's show another example of it. Let's
4:07:49see
4:07:50right here. Do we push into equilibrium?
4:07:53Oh, would you look at that? We do. From
4:07:55the most recent low up to the most
4:07:56recent high, we come down. We poke our
4:07:58head just barely underneath this or I
4:08:03think we made equal lows right here with
4:08:04the equilibrium. But regardless on this
4:08:06candlestick, we end up pushing right
4:08:08underneath the equilibrium. And then
4:08:09from there, boom, we end up pushing
4:08:10above this high. Again, this confluence
4:08:13is completely and utterly useless to you
4:08:16guys if it is not used with correct
4:08:20context. Okay, let's show let's show a
4:08:24good example of like kind of us slowly
4:08:26but surely forming these things all into
4:08:29one. What do we see here? Price coming
4:08:32down, sweeping out a low. We're
4:08:33currently in a downtrend. So, we're in a
4:08:35downtrend. What do we do? We have the
4:08:37potential to fill orders underneath a
4:08:39low. Awesome. We get liquidity sweep
4:08:41from there. What can we see? Well, we
4:08:43get an inverse for value gap. Awesome.
4:08:45So, we get a potential to fill orders
4:08:48confirmation that orders are orders were
4:08:50filled by this inverse for value gap.
4:08:52From there, what can we look for? We can
4:08:54either look for boom, a fair value gap,
4:08:57a bullish for value gap that gets
4:08:59filled. But also, what other
4:09:01continuation confluence do we have now?
4:09:03Equilibrium. Oh, look. And look, this is
4:09:05perfect example. When equilibrium
4:09:07doesn't get filled, we can use for value
4:09:09gaps. And then boom, price ends up
4:09:11moving higher. Let's see if equilibrium
4:09:13was filled from this low up to this this
4:09:15high. It wasn't. All good. Let's see if
4:09:18equilibrium was filled from this low up
4:09:20to this high. Awesome. It was. Price
4:09:22comes down, pokes its head underneath
4:09:24equilibrium and then extends higher.
4:09:26It's literally that that simple. It's
4:09:28literally that easy. Let's show some
4:09:30examples to the downside now. Okay.
4:09:34So right here, what do we do? We inverse
4:09:37this gap. So we know that we are in a
4:09:39bearish trend. Let's see if we hit
4:09:41equilibrium. We take it from the most
4:09:43recent high down to the most recent low.
4:09:45Awesome. We come down. We come back up.
4:09:47We push into a premium and then price
4:09:50pokes its head above the premium price
4:09:52range and then pushes lower. Okay, let's
4:09:55show the continuation of this trend. Now
4:09:57we take it from boom this most recent
4:09:59high down to this most recent low. And
4:10:01we can see both of our continuation
4:10:03confluences working in tandem here. What
4:10:05do we have? We have a fair value gap and
4:10:07we have equilibrium. What does price do?
4:10:08Boom. Pushes into the fair value gap.
4:10:10Pushes right above equilibrium and then
4:10:12comes down and continues lower.
4:10:15Beautiful. Beautiful. Beautiful.
4:10:16Beautiful. This should be very freaking
4:10:18easy for you guys to do and for you guys
4:10:22to look at. Okay. [snorts]
4:10:24Um, I mean they we can we can do this
4:10:28[ __ ] all freaking day long. Um, we can
4:10:30take it from this most recent low to
4:10:33this most recent high low up to high.
4:10:36We're in an uptrend. Price comes
4:10:37underneath equilibrium and then pushes
4:10:39higher. Okay? Like it's it's literally
4:10:41that simple. It's literally that easy.
4:10:44And it's a very useful confluence to
4:10:45show us a continuation of the trend. We
4:10:48can show it on every single time frame.
4:10:50um just like with all of our other
4:10:52confluences, it's very very useful and
4:10:55we can use it to be able to spot um
4:10:58retrace points, okay, for new trends
4:11:01that are forming. So again, up to the
4:11:03high, down to the low. What do we do? We
4:11:06come up, we fill equilibrium, and then
4:11:08we continue lower. What else are we
4:11:09doing? We are also coming in and filling
4:11:11this fair value gap. Beautiful. our
4:11:13confluences. Hopefully now you are
4:11:15starting to see them work in harmony and
4:11:17how they can work together. Again, how
4:11:19do we know that this was going to be a
4:11:21downtrend? We saw a break of structure
4:11:22to the downside right here. Awesome. We
4:11:24see breaker structure to the downside.
4:11:26We see price come up, fill a fair value
4:11:28gap, fill equilibrium, and then price
4:11:30starts to rumble down. Beautiful,
4:11:32beautiful, beautiful, beautiful. That is
4:11:34equilibrium explained. You're probably
4:11:35saying, TJR, I want more. There's no
4:11:37more. There's no more. That's about
4:11:40equilibrium. And I swear, bro, I swear
4:11:45if I see someone marking out equilibrium
4:11:49like this, okay? Taking it from this
4:11:52high down to this low. Why is this
4:11:54incorrect? You're stupid. Because this
4:11:57is the most recent high down to this
4:11:58most recent low.
4:12:01Okay. And I guess I should have put more
4:12:03more context here. Jeez. I guess I
4:12:07should have put more context here.
4:12:10Let's just go to where where were we at?
4:12:14Right here. Okay, because you're
4:12:16probably saying, "Well, there's other
4:12:18highs and lows over here." Okay, it's
4:12:20I'm talking to you guys uh as if we're
4:12:23in this real time, right? So, where is
4:12:26the most recent high
4:12:28post? I mean, let I need to move this
4:12:31back one more time.
4:12:35Awesome. because we are putting this on
4:12:39as the retrace is forming, right? So, we
4:12:41have the most recent high. Boom. We put
4:12:43an up candle in. And now this is the
4:12:45most recent low. Boom. We strap on the
4:12:48GAN box. And then we look. Boom. Oh,
4:12:51price comes up, fills it, we get down
4:12:54move. Awesome. Price is probably going
4:12:56to move lower. Beautiful. Beautiful.
4:12:57Beautiful. Okay. Now, if we want to draw
4:13:01out equilibrium, what are we going to be
4:13:03waiting for on this next candlestick? We
4:13:05need to wait for an up candle, right?
4:13:07So, if we play this, boom, we get an up
4:13:09candle right here. Jeez, bro. We get an
4:13:11up candle right here. So, if that were
4:13:12the case, we would be taking it from
4:13:14boom, most recent high down to most
4:13:16recent low. Unfortunately, in this case,
4:13:18we don't fill equilibrium. But what do
4:13:20we end up doing? We end up filling our
4:13:22other continuation confluence and then
4:13:23we end up moving lower. Okay, it's it's
4:13:27really that easy. You just take it from
4:13:28most recent high down to most recent
4:13:30low. And then in an uptrend, you take it
4:13:32from the most recent low up to a most
4:13:34recent high. That's all it is. That
4:13:36being said, I love and appreciate you
4:13:37guys. Let's get into SMT divergences.
4:13:41This one might melt your brains a little
4:13:43bit tomorrow. So, strap in, guys. Let's
4:13:45get into this. Welcome to SMT Divergence
4:13:49Explained. So for the forex and
4:13:52commodities people, unfortunately this
4:13:54is not going to be as beneficial for you
4:13:56guys because this is specifically
4:13:58talking about the divergence between the
4:14:00S&P 500 and the NASDAQ. And we literally
4:14:03are forming one right now. So again, it
4:14:08involves looking at two different
4:14:10instruments. So the S&P 500 and the
4:14:13NASDAQ at the same time. And then pretty
4:14:15much we're going to be comparing and
4:14:17contrasting their highs and lows and
4:14:20that will help us dictate whether or not
4:14:23one the trend is going to change before
4:14:26even being able to see a break of
4:14:28structure or an inverse for value gap.
4:14:29And we know that we learned about those
4:14:33yesterday in the day in like a couple
4:14:35days ago for in inverse for value gap
4:14:37and break of structure. So an SMT
4:14:39divergence is actually using both the
4:14:41indexes seeing a divergence between the
4:14:43two and then that is going to help us
4:14:45identify if the trend is going to change
4:14:47specifically when an SMT divergence is
4:14:50happening at a significant draw on
4:14:52liquidity. So with that being said,
4:14:54let's get into it. To be honest, I'm not
4:14:56going to sit here and [ __ ] you guys.
4:14:58I have no [ __ ] clue what SMT
4:15:00divergence stands for. Smart money
4:15:02transfer divergence. I don't know. I
4:15:05don't care. All I know is that I know
4:15:08what a divergence me means. I think it
4:15:11just means the difference. I think okay
4:15:14this is horrible but whatever. Let's get
4:15:16into understanding it because this is
4:15:18actually what's beneficial. So let's say
4:15:22we have a high time frame high right
4:15:24here. And we're going to split this down
4:15:26the middle. This is the S&P 500 chart ES
4:15:30and then this is the NASDAQ chart lit.
4:15:34Okay. So, we have a high time frame draw
4:15:38on liquidity right here. Or let's
4:15:41actually move this down a little bit.
4:15:42Boom. And on the S&P 500 chart, we come
4:15:46up and we sweep out that high and then
4:15:49we come down and then we make a lower
4:15:52high. So, what does that probably mean?
4:15:55It probably means, hey, orders have been
4:15:57filled and we're starting to change the
4:15:59direction to the downside. Now, if we
4:16:02look over onto the NASDAQ chart, we can
4:16:06see NASDAQ doesn't necessarily have to
4:16:08push above this high. Okay, the high on
4:16:10the NASDAQ chart. So, again, the NASDAQ
4:16:13and the S&P 500 are very correlated
4:16:15pairs. So, they trade very similarly.
4:16:18However, we are able to capitalize on
4:16:20these small divergences that they have
4:16:21because they can tell us like literally
4:16:23the future about what the other one is
4:16:25going to do sometimes. So, if I get on
4:16:27here and I see boom, ES came up, swept
4:16:30out a high time frame, drawing
4:16:31liquidity, we make a high, come down,
4:16:33make a lower high. But on NASDAQ, we
4:16:35come up, we make a high, and then we
4:16:37make a higher high. What do we see here?
4:16:41At the same time, as we are sweeping out
4:16:44this high time frame high, what is ES
4:16:47telling us about NASDAQ on this? You're
4:16:49probably saying, "Well, I'm not sure. I
4:16:50don't really quite get it." Well, the
4:16:52S&P 500 swept out a high and made made a
4:16:56high and then made a lower high. Pretty
4:16:58much signaling that yep, sell orders
4:17:01were able to get filled here and we are
4:17:03probably going to reverse off of this
4:17:04significant draw in liquidity where
4:17:06orders had the potential to get filled.
4:17:08Versus on NASDAQ, we look over here and
4:17:11we see, okay, a high, this high was
4:17:14formed at the same time that this one
4:17:15was, but then this one forms a higher
4:17:17high at the same time that this lower
4:17:19high was getting formed. So, what is the
4:17:22S&P 500 telling us about NASDAQ? One,
4:17:25[clears throat] that NASDAQ is the more
4:17:27bullish pair, but also it's helping us
4:17:31ES is helping us be able to identify
4:17:33what's going to happen to NASDAQ a
4:17:35little bit later on because if the S&P
4:17:37500 continues this trend down, then what
4:17:40is going to happen to NASDAQ? NASDAQ is
4:17:42going to follow suit in turn potentially
4:17:44giving us a higher risk-to-reward trade
4:17:46on NASDAQ or just in turn helping us be
4:17:49able to identify the direction that
4:17:50NASDAQ is going to go. Because if we had
4:17:52just came up and made a higher high, we
4:17:55would still be under the assumption that
4:17:57hey, we're still in an uptrend. But now
4:17:59that we have the newfound knowledge of
4:18:02ES making a high then a lower high and
4:18:04NASDAQ making a high then a higher high.
4:18:07Instead of thinking, oh, we're in an
4:18:08uptrend on NASDAQ, we can look at the
4:18:10S&P 500 and we can say, oh [ __ ] this
4:18:13thing might actually go down. So, that's
4:18:15just like a little example of what an
4:18:18S&P divergence is on the chart. Now,
4:18:20let's talk about identifying it. So,
4:18:23again, let's put our line down here.
4:18:24This is going to be the S&P 500. This is
4:18:27going to be NASDAQ. So, when is this
4:18:30going to be useful? It's specifically
4:18:31going to be useful when we are actively
4:18:34sweeping out draws and liquidity. Why?
4:18:35because this is where orders have the
4:18:36potential to get filled. Obviously, the
4:18:38S&P 500 and NASDAQ are not going to
4:18:41perfectly align with each other and be
4:18:43perfectly correlated 24/7 365. So,
4:18:46that's why it's very important that we
4:18:48have context here and understand that
4:18:50SMT divergences are very powerful when
4:18:53used when sweeping out draws and
4:18:55liquidity. However, outside of sweeping
4:18:57out draws and liquidity, these things
4:18:59will show up all the time and will be
4:19:01pretty much like useless to us. So,
4:19:05let's get into identifying them on the
4:19:06on the chart. A bearish S&P divergence
4:19:09is when the S&P 500 makes a high and
4:19:12then a lower high. Doesn't matter which
4:19:15which chart this is on. So, it just is
4:19:17when one of the indexes makes a high
4:19:19then a lower high and then the other
4:19:21index makes a high then a higher high.
4:19:24This is a bearish confluence for both
4:19:26the indexes. So, not only a bearish
4:19:29confluence for the S&P 500 because it's
4:19:31the leading index in the downward move
4:19:33because it's making a lower high, but
4:19:35also it's a bearish confluence for the
4:19:38lagging index. Why is it lagging?
4:19:40Because it's continuing the uptrend
4:19:41while ES is forming a new downtrend. So,
4:19:44this one's lagging behind ES because ES
4:19:47was able to fill probably more orders
4:19:49and is able to move a little bit quicker
4:19:51than NASDAQ at this point in time. You
4:19:53know, it could be for any reason, but
4:19:55what is it telling us that NASDAQ is
4:19:57going to do? It's going to go down. So,
4:19:58that's a bearish S&P divergence. And
4:20:00again,
4:20:02these two charts can be changed. So, the
4:20:05S&P 500 can be the one that's making a
4:20:08higher high, and NASDAQ can be the one
4:20:09that's making a lower high. Again, if we
4:20:12look at the chart and we see, oh, NASDAQ
4:20:14made a high then a lower high, while ES
4:20:17made a high then a higher high. What is
4:20:18NASDAQ telling us about the S&P 500?
4:20:21It's telling us that, hey, NASDAQ is the
4:20:24leading index. We probably filled orders
4:20:26above this drawn liquidity that we just
4:20:28swept out and now we're forming a
4:20:30downtrend and ES is the lagging index.
4:20:32But regardless, this is going to be a
4:20:34bearish confluence for both. Okay. Now,
4:20:37with that being said, let's go into the
4:20:40bullish SMT divergence example. So,
4:20:42again, it can be on either of the
4:20:44indexes on the S&P 500. All that it's
4:20:47going to be is when we're in a
4:20:48downtrend, we make a low and then boom,
4:20:51we make a lower low. Awesome. Continuing
4:20:53that downtrend. However, on NASDAQ, we
4:20:56might make a low, then a higher low.
4:20:59What is that telling us again?
4:21:00Especially when we're taking out a
4:21:02significant draw in liquidity. What is
4:21:03NASDAQ telling us about the S&P 500?
4:21:06What is it helping us do? It's saying,
4:21:09"Hey, we were able to fill orders
4:21:11underneath this significant draw on
4:21:12liquidity, and NASDAQ is already
4:21:14starting an uptrend by making a higher
4:21:16low, while the S&P 500 is making a lower
4:21:18low." So, regardless, what is this
4:21:20telling us about both of the indexes?
4:21:22Oops. What is that telling us about both
4:21:24of the indexes? NASDAQ, it wants to move
4:21:26higher. It's the leading index. The S&P
4:21:28500, it is going to move higher. It's
4:21:30the lagging index behind NASDAQ, but
4:21:31NASDAQ is giving us a early jump to the
4:21:34game and pretty much telling us the
4:21:36future of what's going to happen with
4:21:37the S&P 500. Now, I know that might have
4:21:41been a little bit confusing. So, let's
4:21:42get on to the chart and let's show you
4:21:45real deal examples of this. Let me
4:21:49split this thing on up and let's see why
4:21:53my chart looks like this. Um, blue and
4:21:58black maybe.
4:22:01Um,
4:22:03settings.
4:22:06Okay.
4:22:09This needs to be completely off.
4:22:13Okay. Okay. Okay.
4:22:16And boom.
4:22:18Lit.
4:22:22Okay. So, we're on the daily time frame
4:22:24right here. Let's try and find an
4:22:26example on the daily time frame
4:22:30or I believe the 1 hour is going to be
4:22:32easier for us.
4:22:34Now you guys don't necessarily need to
4:22:36have the uh the charts split screen
4:22:40split screen like this, but it is um
4:22:45it's easier for me to show it like this
4:22:47than
4:22:49not. So let's see.
4:22:55Oh, this was a good example. So, this
4:22:58was on the higher on a higher time
4:23:00frame, but you can still see it. So,
4:23:02boom, we have a high right here, and
4:23:04then boom, we have a lower high right
4:23:05here on the S&P 500. And then, if you
4:23:07look at the same time, we have the same
4:23:09exact high that was made on NASDAQ, but
4:23:11a higher high that was formed on NASDAQ.
4:23:13So, NASDAQ, what did we do on NASDAQ? We
4:23:16came up and we swept out this
4:23:18significant draw on liquidity. This is
4:23:20actually on the 4 hour. So if we want to
4:23:23go here, boom, and then 4 hour here. So
4:23:27this is a good example right here. So we
4:23:30can see this high, NASDAQ comes above it
4:23:34and makes a higher high while ES is well
4:23:38underneath this high and it makes a
4:23:40lower high. So once we form this high,
4:23:43what can we safely assume about both
4:23:46these indexes? One, the S&P 500 is the
4:23:48more bearish index, but two, we know
4:23:51that NASDAQ was able to sweep out
4:23:53orders, and even though it made a higher
4:23:55high, we know that overall the price
4:23:58price is going to be bearish. Why?
4:24:00Because the S&P 500 made a lower high.
4:24:03So, what in terms of like entry, since
4:24:06this is on a higher time frame, I'm
4:24:09going to be looking at this and I'm
4:24:11going to be saying, okay, I'm probably
4:24:13going to want to take a trade on the S&P
4:24:14500. Why would I want to take a trade on
4:24:16the S&P 500? Because it's the leading
4:24:18index. It's the index that is already
4:24:20more bearish. Okay? So, if we see a
4:24:22bearish S&P divergence, I'm not going to
4:24:24want to take a short position or a sell
4:24:26trade on the bullish index, which is
4:24:29NASDAQ, because it pushed above this
4:24:30high, right? I want to take it on the
4:24:32S&P 500, the one that's leading the move
4:24:34to the downside, the one that is
4:24:36actually making a lower high. Okay? And
4:24:39then on top of that, this is really
4:24:41going to be used for bias, especially on
4:24:42the high time frames. But I'll show you
4:24:44guys examples on the low time frames of
4:24:46when we're actually able to use it for
4:24:48execution. So, this is a good example of
4:24:50a bearish S& divergence of us sweeping
4:24:53out a high on NASDAQ, making a higher
4:24:54high, but us unable to sweep it on the
4:24:56S&P 500, making a lower high. And then
4:24:58what do we see price do on both the
4:25:00indexes following that? Boom, we dump
4:25:02down. Boom, we dump down. Okay, let's
4:25:05show examples of this on
4:25:10a lower time frame. Let's see if we can
4:25:13let's let's look at Friday's price
4:25:15action. Okay. Yeah. I mean this
4:25:19there wasn't like a actual like strategy
4:25:21entry, but this is a good example of how
4:25:23you could look for a entry or
4:25:26potentially use it as a confluence. So
4:25:28even though my strategy doesn't show up
4:25:29here, this is a good example of it
4:25:32showing up on the low time frames and in
4:25:34a bullish scenario. Now, so look right
4:25:36here. We're on the 5minut time frame on
4:25:37the S&P 500. We have a low, then we have
4:25:39a higher low. If we look at the same
4:25:41time that this low was formed right here
4:25:44on the S&P 500, we have this low. And
4:25:46then when this higher low was formed, we
4:25:48look over to that same point on NASDAQ.
4:25:50And what does it do? It makes a lower
4:25:53low. What immediately happens after we
4:25:55get the SMT SMT divergence, the S&P 500
4:25:58ends up trading higher and NASDAQ ends
4:26:01up trading higher. So this is a good
4:26:02example of again all of our confluences
4:26:05show up on every single time frame, but
4:26:06this is a good example of how look right
4:26:09here. What are we doing while this is
4:26:11happening? We're actively sweeping out
4:26:13high time frame draws and liquidity
4:26:14right here. So again, this very well,
4:26:16even though this price action isn't that
4:26:18good to the left-h hand side. Again, I'm
4:26:20going to want to be taking the trade on
4:26:21the leading index on the S&P 500. Why?
4:26:24Because it's the more bullish index,
4:26:25right? This is a bullish S&
4:26:29that is leading the charge and not the
4:26:31one that's behind, right? That's still
4:26:33forming the downtrend. I want to be the
4:26:34one that in a buy position in the one
4:26:37that's forming the new uptrend. Okay, so
4:26:41I get on here. I see awesome. Like this
4:26:43can be a quick breakdown. We come down,
4:26:46we sweep out a high time frame draw on
4:26:47liquidity. Awesome. We see a low and
4:26:49then we see another low get for formed
4:26:51and you're like, hey, wait a second,
4:26:52that's a higher low. Let's look look
4:26:54over at NASDAQ. Then we see NASDAQ has
4:26:56the same low, but then uh-oh, there's a
4:26:58lower low. Awesome. What is that telling
4:27:00me? That's a very bullish confluence for
4:27:02the S&P 500 and a bullish confluence for
4:27:04NASDAQ. And look, this is a prime time
4:27:07example. If we look at the S&P 500
4:27:09compared to NASDAQ, the S&P 500 again is
4:27:12the leading index. We can see a bigger
4:27:14and a faster expansion than on NASDAQ.
4:27:16NASDAQ isn't able to get up as high.
4:27:19These were the highs that the S&P 500
4:27:22moved past. Boom. S&P 500 was able to
4:27:25move past these highs. NA NASDAQ didn't
4:27:26even get close to them. So again, just
4:27:29showing examples of why we want to take
4:27:31the leading index rather than the
4:27:33lagging index. So hopefully I mean this
4:27:37was really all that we needed to cover.
4:27:39Um this it's kind of a blend of the
4:27:41confluences and I'll show you and I'll
4:27:43explain what I mean by that when we
4:27:45start getting into strategy. But um
4:27:48hopefully you guys understood what this
4:27:51is all about and you guys will learn a
4:27:53little bit more as we start introducing
4:27:54it in trade recaps um and as you guys
4:27:57start seeing me put it together with our
4:27:59strategy videos. But right now I want
4:28:02you guys to be able to at least identify
4:28:04them and then see reactions off of them
4:28:06specifically off of high time frame
4:28:07draws on liquidity because that's when
4:28:09it's going to be the most beneficial for
4:28:10us. And yeah, with that being said,
4:28:12tomorrow we are going to get into time
4:28:14theory. And then I think it's going to
4:28:16be time for us to be able to put all of
4:28:18our confluences together because we
4:28:19pretty much learned every single
4:28:21confluence that we need in order for us
4:28:23to be able to take trades, which is
4:28:25awesome. So, tomorrow we're just going
4:28:26to get into some advanced stuff like uh
4:28:28the timing of the market and when to be
4:28:30looking to take trades, when to be
4:28:32looking for manipulation in the market,
4:28:34but other than that, we're on a very,
4:28:36very good track here. So, yo, what up
4:28:38guys? Welcome to time in the market
4:28:43explained. So as you guys know or as you
4:28:46guys hopefully should know timing within
4:28:48the market is very very important. Okay?
4:28:51If we do not understand the time of the
4:28:53market then we are not going to be able
4:28:55to trade um just with high probability
4:28:59on a daily basis. Right? Our goal
4:29:00trading is to be able to make high
4:29:02probability decisions within the market
4:29:03of where price is going to go on a daily
4:29:05basis and without understanding the
4:29:07timing of things. We are pretty much
4:29:10screwing ourselves over. So we already
4:29:12mentioned that there are three sessions
4:29:15and luckily for us because we trade US
4:29:17indexes, we're really only looking to be
4:29:18trading New York session. So there's the
4:29:21three session times and then there's
4:29:22specific times during New York session
4:29:24that are very valuable to us. So we'll
4:29:26go over them. So, first there's Asian
4:29:29session, Asian persuasion. It starts at
4:29:321,800 and it goes till 3. Okay. Then
4:29:36next we have London session. Okay.
4:29:38London session goes from 3 till 8:30.
4:29:42Technically, technically London session
4:29:45goes till 11:30 New York time, but we
4:29:48want to end all of these sessions when
4:29:50the next one is opening. So, Asian
4:29:52session, London session pre-market
4:29:55actually opens at 2:00, but London
4:29:57session market opens at 3:00. New York
4:30:00pre-market opens at 8:30. The reason why
4:30:02I have it marked out at 8:30 is that
4:30:04that um very typically uh we will
4:30:08actually see pre-market manipulation.
4:30:09So, it's very important that we
4:30:11understand that that is when new money
4:30:12is coming into the market. That's when
4:30:14US uh traders are coming into the
4:30:16market. And then for New York session,
4:30:19we go from 8:30, which is pre-market,
4:30:23to 9:30, which is market open. So that's
4:30:28pre-market. And then we go from 9:30
4:30:32all the way to,700.
4:30:35And then the gap between 1,700 and 1,800
4:30:39is what we call spread hour, where there
4:30:41is no market that is open. And that's
4:30:44typically when you guys will see if you
4:30:45guys trade on like a CFD broker or a
4:30:48forex or a commodities broker, you will
4:30:50see the spreads on every single pair get
4:30:52very very large. It's because there's no
4:30:54money in the market. Okay, we call the
4:30:56spread hour. So now that we understand
4:30:58this, you're probably saying, well, how
4:30:59is this useful to us? Well, we already
4:31:01talked about it a little bit when we
4:31:03mentioned session highs and session lows
4:31:05within the advanced liquidity concept
4:31:07video where we say, "Hey, these sessions
4:31:10are very important because we can see
4:31:11new money coming into the market and
4:31:13manipulating the session highs and
4:31:14session lows." And we understand that
4:31:16when new money comes into the market,
4:31:18it's going to want to find some sort of
4:31:20manipulation and then reverse towards a
4:31:21draw in liquidity, right? That's just
4:31:24what we know when new money comes into
4:31:26the market. So, awesome. These times are
4:31:27very, very valuable to us. Now, let's
4:31:29talk about specifically because we
4:31:31already talked about how session times
4:31:33are useful for us. But if we're trading
4:31:35the S&P 500 in NASDAQ, which is what I'm
4:31:37teaching you guys how to do within this
4:31:39series, then we need to know the
4:31:41specific times during New York session
4:31:43that are going to be valuable for us.
4:31:44So, we have open, right, which is at
4:31:509:30
4:31:51a.m. Eastern time. Again, we're
4:31:53operating on Eastern time. Okay? Okay.
4:31:55And then we have what I call our
4:31:58manipulation time frame, which is from
4:32:009:30
4:32:02to 9:50.
4:32:04And then so we have open at 9:30. We
4:32:07have manipulation
4:32:10from 9:30 to 9:50. And then from
4:32:16950 really to like 1010.
4:32:20Wow, look at that. From 9:50
4:32:26to 10:10, we have our entry period and
4:32:29then the rest from there, like we kind
4:32:31of just carry on. We also have PM
4:32:33session that opens at around 100 p.m. Me
4:32:37personally, I don't trade this, but we
4:32:39can add it on there as well. So, cool.
4:32:42Now that we already we already
4:32:44understand the use case for the se the
4:32:46previous sessions and how that's useful
4:32:48for us to be able to identify
4:32:50manipulation from each session and we
4:32:52can use them as solid draws on liquidity
4:32:55whether we're looking for it as a target
4:32:57or whether we're looking at it for an
4:32:58entry. Now how are these times useful
4:33:01for us as New York session traders?
4:33:04Well, I'll tell you this. We know that
4:33:07because market opens at 9:30, there's
4:33:09going to be new money coming into the
4:33:10market. And because new money is coming
4:33:12into the market, what can we expect from
4:33:14New York session? We can expect there to
4:33:16be some form of manipulation. So
4:33:19awesome. What times is price typically
4:33:21going to be be manipulating from?
4:33:23Whether it's a high time frame draw
4:33:24liquidity or a low time frame draw on
4:33:27liquidity? Well, there's going to be
4:33:30manipulation from 9:30 to 950. Sometimes
4:33:34the manipulation happens, you know, from
4:33:369:30 to 9:30 to 9:40 and there's an
4:33:39entry at 9:45. But typically the
4:33:41manipulation, whether it's on the high
4:33:43time frame or the low time frame, is
4:33:44happening within these time zones. And
4:33:46then from there, our typical entry is
4:33:48going to be from 950 to 10:10. That's
4:33:51just that's called the macro. Um it's
4:33:53what a lot typically the ideal entry
4:33:56time. And then for me, I am if I can't
4:33:59find a trade by 10:30, I'm done for the
4:34:02day because that's when the market tends
4:34:04to slow down. So, this is going to be a
4:34:06very quick video. Um, this is really all
4:34:08that we all that we need. We can go and
4:34:11we can show examples of this happening
4:34:13in real time. Um, so let's go to the
4:34:19previous day
4:34:22right here.
4:34:25Okay. So,
4:34:30let's look at this real quick. So, we
4:34:32have 930. Oops, that's 9:25. So, we have
4:34:349:30
4:34:37and then we have
4:34:40950.
4:34:42So, this is a good example of boom
4:34:45within this time frame. What are we
4:34:46doing? We are manipulating up and then
4:34:49by the time 950 comes through, what does
4:34:51it deliver us? It gives us an entry at
4:34:5310 and then the ideal pos the ideal
4:34:56position would have been to short down
4:34:58to these high time frame lows right
4:35:01here. We're not going to go exactly into
4:35:03strategy and what trades we should be
4:35:05taking on this. We'll get into that when
4:35:07we put everything together with all of
4:35:08our confluences, but we can see very
4:35:11clearly that from 9:30 to 950, what we
4:35:14were we doing? We were manipulating up
4:35:16and then we came back down and then
4:35:18boom, 950 hits. We get one last push up
4:35:21to give us our entry and then boom, we
4:35:23trade all the way down to the high time
4:35:24frame draw on liquidity by 10:05 and
4:35:27then boom, our trade is done for the
4:35:28day. Awesome.
4:35:32Let's show another example of this. And
4:35:34this is literally all that we're going
4:35:35to be going over today. Just very, very
4:35:37simple going over the valuable times for
4:35:41us. Okay, so we'll go 9:30 right here.
4:35:46And this is another really freaking good
4:35:48example of this. 950.
4:35:52Oh my goodness. It's beautiful.
4:35:53Literally happens every single day. So,
4:35:55let's look right here. 9:30 opens. What
4:35:58do we do? We come down. We manipulate
4:36:00these high time frame lows. And then
4:36:02boom, 950 hits. We get the manipulation.
4:36:05We come up. We get a retrace. We get our
4:36:07entry right around 10. And then boom, we
4:36:09get an extension higher. Beautiful,
4:36:11beautiful, beautiful. Let's keep going.
4:36:14And we'll just show literally just a
4:36:16couple more examples of this. And this
4:36:18is all that I really want to cover for
4:36:20for this today. I know it's going to be
4:36:21a little bit short, but
4:36:24this is really all that we need to cover
4:36:26on this topic talking about the times.
4:36:28So, let's get into this. 950.
4:36:34Boom. So, we can see market opens. What
4:36:36are we doing from 9:30 to 950? We are
4:36:38manipulating up and higher. And you
4:36:41know, who knows if there was an entry
4:36:43within here, but regardless, maybe we we
4:36:45were able to see an entry right here at
4:36:4610:05. And then what does price do? It
4:36:48comes down and then delivers to take out
4:36:50all of these low resistance draws and
4:36:51liquidity right here.
4:36:54Okay, let's show one more example.
4:37:00This was a high impact news day, so this
4:37:03isn't going to be super beneficial for
4:37:04us. Let's look at Monday. Okay, this
4:37:09isn't a very good example. Let's see if
4:37:11we can look at the one minute to see if
4:37:13we can see this a little bit clearer.
4:37:15Uh yeah, this price action kind of
4:37:17sucks, but it is what it is. In this
4:37:20case, we get boom, market open, the
4:37:23manipulation time frame, we literally
4:37:24get nothing, but we finally see the
4:37:27final leg of manipulation happening a
4:37:29little bit later at 9:52. We sweep out
4:37:31these legs and then we get the expansion
4:37:32higher. So in this case, the
4:37:34manipulation was just 2 minutes to 2
4:37:36minutes later than our typical
4:37:38manipulation time frame. And that's the
4:37:40thing, like this doesn't have to be
4:37:42point blank period. Like we can only
4:37:44look to enter at 9:50 to 10:10. That's
4:37:46not the case. I take trades at 10:20
4:37:49sometimes. I take trades at 9:45
4:37:51sometimes. But it's just very good for
4:37:53us to be able to identify, hey, market
4:37:55opens at 9:30. we are typically going to
4:37:58see some form of of manipulation like
4:38:00bare minimum some form of manipulation
4:38:02between the times of 9:30 to 9:50 and
4:38:05then from there we're typically going to
4:38:06get a good entry point for the overall
4:38:09hourly trend from 9:50 to 10:10 and then
4:38:12we know PM session starts at 1:00 and
4:38:14then the rest is
4:38:16all good. So I mean [ __ ] dude that was
4:38:19pretty freaking simple class today but
4:38:22that's really all that we need to cover.
4:38:24Um, tomorrow we'll be going over very
4:38:26briefly talking about some funded
4:38:28accounts, the best prop firms for you
4:38:30guys to use, and then from there we can
4:38:33actually start putting stuff together in
4:38:34terms of like strategy, um, how to
4:38:37actually take trades and putting all of
4:38:40this stuff together. But first, we I
4:38:41want to introduce funded accounts to you
4:38:43guys and explain kind of indepth um
4:38:45because a lot of you guys are getting
4:38:47into these funded accounts with like
4:38:48literally no knowledge of like what the
4:38:51risk parameters are and like what risk
4:38:53you're actually taking on when you buy
4:38:54the funded account and understanding all
4:38:56those rules. So, I want to make sure
4:38:58that that is very clear for you guys
4:39:00before you guys jump the gun and like
4:39:01start a live account or start trying to
4:39:03trade on a funded account. We'll go over
4:39:05brokerage and we'll also go over fundeds
4:39:07in that video. So, that being said, love
4:39:09and appreciate you boys. I'll see you
4:39:10guys tomorrow. What's going on, guys?
4:39:11And welcome to the funded account
4:39:13portion of the path to profitability.
4:39:15So, in this video, I'm going to be
4:39:17explaining what funded accounts are, how
4:39:19you guys can use them to your advantage
4:39:20if you are somebody with low capital,
4:39:22which again, the vast majority of us
4:39:24when we were starting trading and for
4:39:26you guys, you guys getting into trading,
4:39:27you guys don't have a lot of capital to
4:39:29start with. So, it's difficult for you
4:39:30to be funding a live account with the
4:39:32small amount of money that you guys have
4:39:34right now, which okay, that's, you know,
4:39:36completely fine. There's no shame in
4:39:37that. These companies, these prop firms
4:39:40are going to be a huge, huge, huge tool
4:39:42for us to be able to scale our capital
4:39:44fast for us to be able to leverage their
4:39:46capital and be able to pay a small
4:39:48amount of money from our cow amount of
4:39:50capital to be able to leverage and trade
4:39:52with a high amount of capital through
4:39:54these prop firm account challenges. So,
4:39:55with that being said, let's talk about
4:39:57what prop firms are. So, prop firms are
4:40:00essentially a company that we can pay a
4:40:03small fee to where they are going to
4:40:05give us a trading challenge. And within
4:40:07this trading challenge, we have to just
4:40:09be able to pass and hit a certain profit
4:40:11target without going down and losing a
4:40:14certain amount of money, which is our
4:40:15draw down. Now, each one of these prop
4:40:18firms is going to have different sets of
4:40:20rules. There's also different types of
4:40:22accounts on every single prop firm.
4:40:24There's some prop firms where you don't
4:40:26even have to pass a challenge in order
4:40:28to get live funding, but there's
4:40:29stricter rules in order for you to get a
4:40:31payout. Now again, before we go into
4:40:34that, what I want to explain to you guys
4:40:36is why this is beneficial for you guys
4:40:38as lower capital traders. So most of
4:40:41these prop firms have $50,000 accounts,
4:40:45$100,000 accounts, $150,000
4:40:49accounts, $25,000 accounts, right? And
4:40:52that's a much larger amount of capital
4:40:54than you guys are typically going to be
4:40:56able to afford, right? on just a regular
4:40:58live account. Do you guys have $50,000
4:41:00that you can just send straight out from
4:41:02your bank account into a brokerage
4:41:03account? Probably not. Do you guys have
4:41:05$100,000 that you guys can wire straight
4:41:08from your bank account into a brokerage
4:41:10account? Probably not. But these prop
4:41:12firms, they are going to give us the
4:41:14opportunity to be able to be trading
4:41:16with that amount of capital. But first,
4:41:19we have to prove that we are able to pay
4:41:21with that amount, play or trade with
4:41:24that amount of capital by trading and
4:41:27passing a trading challenge. So again,
4:41:30depending on what prop firm you you use,
4:41:32I'm going to go over two prop firms that
4:41:35are very good, some of the biggest
4:41:36leaders in the industry, and we're going
4:41:38to break down some of their accounts.
4:41:39But depending on what prop firm and what
4:41:41company you decide to go with, then
4:41:43their account challenges are going to be
4:41:45built out a little bit differently. Um,
4:41:47there's going to be some that are more
4:41:49expensive than others that might make it
4:41:51a slightly easier for you to pass that
4:41:53maybe give you a higher potential
4:41:55payout. Um, [snorts] there might be
4:41:57accounts that are a little bit cheaper,
4:42:00but it's a little bit more difficult to
4:42:02pass and the payout cap is a lot tighter
4:42:05where let's say I'm on a $50,000
4:42:08account, uh, or yeah, a 50,000 $50,000
4:42:11funded account and I only pay, let's
4:42:15say, 79 bucks for it, then the process
4:42:18of being able to pass that challenge and
4:42:20then get to a live account to then be
4:42:22able to potentially make money and then
4:42:25request a payout from it, you are going
4:42:28to have a slightly more difficult time.
4:42:31And then on top of that, the payout that
4:42:33you're going to be able to potentially
4:42:34receive is going to be slightly smaller
4:42:36than something that costs a little bit
4:42:39more that you're pretty much paying for
4:42:42a slightly easier challenge for you to
4:42:44pass and then also a larger payout cap.
4:42:46So with that being said, hopefully you
4:42:49guys can hopefully you guys have already
4:42:50heard about prop firms and if not
4:42:52hopefully that was a good explanation of
4:42:54we are paying money to be able to prove
4:42:57that we are profitable. So this is very
4:42:59very key before just jumping into prop
4:43:01firms and into buying all these accounts
4:43:03saying I can't wait to make $2,000 or I
4:43:07can't wait to make $5,000 from this prop
4:43:10firm from this prop trading account
4:43:12because they're giving me all this money
4:43:13to trade with. Yes, that that that is
4:43:16the case. But you also have to
4:43:17understand not many people are able to
4:43:20pass these account challenges. And it's
4:43:22for a good reason. It's because you
4:43:24genuinely have to be good at trading in
4:43:27order to pass these challenges. Now, as
4:43:29you guys know, throughout the past 12
4:43:31days, we've been talking about all of
4:43:33these different things and different
4:43:34confluences to help you guys get good at
4:43:36trading. But also, we haven't even
4:43:38discussed strategy yet. We haven't
4:43:40discussed risk management. We haven't
4:43:41talked about entries and exits. Okay?
4:43:44So, we if you guys are brand new
4:43:46beginners starting from day one all the
4:43:48way up until this point, you guys aren't
4:43:50even fully there yet in order to be able
4:43:51to buy one of these things. But again,
4:43:53like I was saying at the beginning of
4:43:54this video, it is a super, super
4:43:56valuable tool that's going to help you
4:43:58guys scale up your capital very, very,
4:44:00very quickly. However, what do you need
4:44:03before that? You need to have the skill
4:44:04of day trading. Let's think back to day
4:44:07two of what even is trading? What is
4:44:09trading all about? It's being able to
4:44:10predict with a high probability where
4:44:12price wants to go on a daily basis,
4:44:15right? And if we're unable to do that,
4:44:16then we are going to be unable to pass
4:44:18these funded account challenges. And we
4:44:20are going to be unable to make money
4:44:22from the markets because in order just
4:44:24like on a live account, just like on a
4:44:26demo account, just like on a prop
4:44:27trading account, in order to make money,
4:44:30in order to have a positive P&L, you
4:44:32need need need one trillion% need to be
4:44:37a good trader. Okay, point blank period.
4:44:40You need to have the skill of trading.
4:44:41So, with that being said, let's show you
4:44:44guys two of some of the best prop firms
4:44:48within the space and let's go over their
4:44:51rules and why these are going to be
4:44:53beneficial for you guys. So, the first
4:44:55one that we have here today is Alpha
4:44:57Futures. Okay. And the nice thing about
4:45:00Alpha Futures again, and they have it on
4:45:02their very front page, is they have the
4:45:04largest payout cap. Okay? So, as we can
4:45:08see here, the industry normal is around
4:45:10$1,200 to $5,000 max withdrawals at all
4:45:14these other prop firms in the space.
4:45:17However, with Alpha Futures, Alpha
4:45:19Futures offers a max withdrawal of
4:45:22$15,000
4:45:24per standard or advanced account, which
4:45:26is pretty insane. Um, and that's why
4:45:29they are one of my top choices for prop
4:45:32firms to recommend to you guys. Okay.
4:45:34So, again, like I mentioned, there's
4:45:36several different plans and they all are
4:45:40useful for different things. So, this
4:45:43one right here is the Alphas Alpha Zero
4:45:46plan, okay? Which means that there's
4:45:48zero activation fee, okay? And what are
4:45:51the account sizes that we can choose
4:45:53from? We can choose from a $50,000
4:45:55account and a $100,000 account. And
4:45:58again, like I said, all of these
4:46:00different account styles, the zero plan,
4:46:02the standard plan, and the advanced
4:46:04plan, they all have different rules and
4:46:08they all have different regulations that
4:46:09you need in order to be able to pass in
4:46:11in order to be able to receive a payout.
4:46:13And there's not there's nothing to say
4:46:15that, oh, this one's better than this
4:46:17one, this one's better than this one. It
4:46:19really just depends on your trading
4:46:20style and it really depends on what you
4:46:22are trying to do with the account. So,
4:46:25just like I was just saying that there's
4:46:27no like definite this one's better than
4:46:28this one, but the vast majority of
4:46:31people when they are trading on Alpha
4:46:32Futures are typically going to be
4:46:34trading on the Alpha Futures Advance
4:46:37plan. Okay, people across the industry
4:46:39say the Alpha Futures Advance accounts
4:46:41are some of the best accounts and it's
4:46:43because of that massive payout that you
4:46:45can receive. Okay, so we can see that
4:46:47there's an evaluation phase. You have to
4:46:50be trading for a minimum of 2 days. your
4:46:52profit target. So again, this is your
4:46:55evaluation. This is your challenge. Your
4:46:57goal on this $100,000 account is to make
4:47:008%. You need to make $8,000 on your
4:47:05$100,000 on your $100,000 account. On
4:47:08top of that, your maximum position size
4:47:10that you can enter in is 10 contracts.
4:47:12So, you are going to be able to enter in
4:47:14with 10 contracts maximum per trade. And
4:47:17trust me guys, that is plenty of
4:47:20contracts for you guys to be able to
4:47:22trade unless you guys are trading on
4:47:23like the very like the seconds time
4:47:27frame. Trust me, 10 contracts is plenty
4:47:30to trade with. So this is not limiting
4:47:31you whatsoever. And then the max amount
4:47:34of amount of draw down that you can go
4:47:36down is $3,500.
4:47:39So what does that mean? That means if
4:47:41I'm trading on my $100,000
4:47:44um Alpha Futures Advanced Plan account,
4:47:46that means I cannot have the the I
4:47:50cannot have the account go down to what
4:47:54is that $96,500
4:47:57in total equity or balance. Okay? Or
4:48:01else I lose the challenge and I end up
4:48:04failing. And if I fail, then this money
4:48:07goes down the drain. And we're actually
4:48:08going to talk about that in our risk
4:48:10management lesson talking about how you
4:48:13guys can actually manage your risk when
4:48:14you guys are buying and paying for these
4:48:16prop firms because you guys have to
4:48:18understand a lot of people think that
4:48:20these prop firms like they don't cost
4:48:22any money for whatever reason because
4:48:23they're just thinking about the
4:48:24potential payout that they can get from
4:48:26them. But at the end of the day, it is
4:48:28very real money that you're putting on
4:48:29the table. And a lot of people don't
4:48:30realize that it's real money until after
4:48:32they blow the account and then they're
4:48:34like, "Wait, I just lost $279.
4:48:37I'm going to freak out now. Okay. So,
4:48:40let's let's not do that. And again,
4:48:41during the challenge phase, there's
4:48:43obviously going to be no profit split
4:48:45because during that time, you are just
4:48:46trying to prove to the prop firm, in
4:48:49this case, it's Alpha Futures, that you
4:48:51are a good trader in order to be on a
4:48:53qualified account so that you guys are
4:48:54able to get an actual profit split. um
4:48:57you can reset the account for another
4:48:59$279 um dollar which means again if you
4:49:03fail and if you hit this max draw down
4:49:05then you can reset it for the same cost
4:49:07which is nice. There's no daily loss
4:49:09limit um which is nice and again like I
4:49:13was saying depending on what prop firm
4:49:15prop firm you use Alpha Futures is one
4:49:17of the more expensive prop firms in the
4:49:19space but it's for a good reason. Not
4:49:22only is it for a good reason because you
4:49:23can get the largest payout in the space,
4:49:26but also you have a very big consistency
4:49:29rule. Okay, most prop firms are anywhere
4:49:31from like 30 to a 40% consistency rule.
4:49:35In this case, Alpha Futures is a 50%
4:49:37consistency rule. Meaning, in order for
4:49:39you to pass the evaluation phase, you
4:49:42need to be able to take you need to be
4:49:45able to split your winning profits
4:49:47across three trades at the minimum.
4:49:50Okay? in order for you guys to be able
4:49:51to pass with this consistency rule. So,
4:49:54it pretty much means you can't have the
4:49:55vast majority of your profits being over
4:49:5750% in order to pass this challenge.
4:50:00Okay. Um, from there, there's also some
4:50:03other rules like yes, you are able to
4:50:04hold through news. Now, I don't want to
4:50:06bore you guys and stay on here and just
4:50:09go over, hey, this one it's this, this
4:50:11one's it's this. I actually have a free
4:50:14doc for you guys that is going to have
4:50:16the information on all of the alpha
4:50:18futures accounts and then also all of
4:50:21the tradeify accounts which is the
4:50:23properform that I'm going to go over
4:50:25next that is linked down in the
4:50:27description. So if you guys want to go
4:50:29to that Google doc and you guys can
4:50:30click on it you guys can download the
4:50:31PDF. It breaks down pretty much the pros
4:50:34and the cons of every single account
4:50:35that these two prop firms have. And on
4:50:38Tradeify specifically, they actually are
4:50:40doing something really sweet um for you
4:50:43guys by making it for this video and for
4:50:46me only. If you guys want, there's a
4:50:48onetime use code of TJR40 for you guys
4:50:52to be able to get a 40% discount on
4:50:55literally every single one of these
4:50:58accounts. So, you guys will be able to
4:50:59get a 40% off discount on a growth 50K
4:51:0350K account. You guys can get a 40%
4:51:05discount on a select 150k account. You
4:51:08guys can get a 40% off on a lightning
4:51:1250k account. Okay, it doesn't matter.
4:51:14It's one time use per per person though,
4:51:17not per account. So, I can't just buy a
4:51:19lightning 50k account. That's 40% off
4:51:21and then a 25k account. Okay, code TJR
4:51:24will save you 30% off after that. But
4:51:28there is a one-time TJR. Uh, the code is
4:51:31TJR40.
4:51:33That is going to save you guys 40% off.
4:51:35It's a one-time code that you guys can
4:51:37use. That is going to be activated for
4:51:39this video and probably will only last
4:51:42till the end of today. So, take
4:51:44advantage of that. This is like
4:51:46literally the biggest sale that they
4:51:47have done and they gave it to me for
4:51:48this video, which is really, really
4:51:50awesome of them. Now, let's get into
4:51:52their accounts. Again, if you guys want
4:51:54to look through the Google doc and do a
4:51:55compare and contrast of all the pros and
4:51:56cons, I've already laid it out in there.
4:51:59But Tradeify, their best accounts are
4:52:01going to be their instant funded funding
4:52:03accounts. Okay, a lot of people will
4:52:05will choose between their select
4:52:06accounts or their lightning accounts,
4:52:08which gives you instant fundings. Okay,
4:52:10the select accounts are great as well
4:52:12because you have the opportunity to be
4:52:14to be able to get daily payouts, which
4:52:17is pretty sick. Okay. So, if you're
4:52:18trading on $150,000 account, um, and
4:52:21you're able to pass this evaluation, you
4:52:23can literally one, be able to pass the
4:52:26evaluation in the span of 3 days and
4:52:28then be able to be qualified for a
4:52:30payout in 4 days. This is one of the
4:52:33only prop firms in the industry where
4:52:35you are able to start an account
4:52:37challenge on Monday and then be able to
4:52:40receive a payout by Friday by going
4:52:43through with the select accounts. Now,
4:52:45the Lightning instant funding accounts
4:52:47are very, very interesting because like
4:52:49I was saying at the beginning of this
4:52:50video, there are some prop trading
4:52:52accounts that you do not need to pass a
4:52:56challenge in order to jump onto a live
4:53:00account. So, again, typically how the
4:53:02prop firm industry works is you pay
4:53:05money to be able to take the challenge.
4:53:08You take the challenge, you try and
4:53:09pass. If you pass, awesome. they move
4:53:11you on to another account and then on
4:53:13that account you're able to earn money
4:53:15on that and you're able to request a
4:53:16payout. However, some prop firm
4:53:20companies have these instant funding
4:53:22accounts where they say, "Hey, if you
4:53:24truly believe in yourself, we're going
4:53:26to give you a very large onetime fee."
4:53:29And if you guys use code TJR, then you
4:53:31guys are going to get or if you guys
4:53:33want to use code TJR40 for these
4:53:35lightning accounts, you guys can save
4:53:3640% off on a one time. Or if you guys
4:53:39are using this a second time, you guys
4:53:41can just use code TJR. You guys can also
4:53:43use code TJR on Alpha Futures. Forgot to
4:53:46mention that. Um to be able to save 10
4:53:49or 20%, it depends on what account that
4:53:51you guys are choosing. Um code TJR on
4:53:53Tradeify saves you guys 30%. So again,
4:53:56use my name all across here. You're
4:53:58going to save a whole bunch of money.
4:53:59But Lightning funded accounts are very,
4:54:01very great because you do not need an
4:54:04evaluation. There's no evaluation. and
4:54:05you just instantly jump in with funding.
4:54:08Now, don't be fu fooled. You still have
4:54:10to be good at trading. You're probably
4:54:11saying, "Well, I suck at trading. I'm
4:54:13just going to take the one that you
4:54:15don't have to do a challenge in order to
4:54:17get funding for." Well, that's the thing
4:54:19on this. There are some rules still set
4:54:22in place for you guys in order to make
4:54:26it not difficult for you guys to be able
4:54:28to get a payout, but there are some
4:54:30rules in line that are uh I guess make
4:54:35it so that you still have to be good at
4:54:36trading in order to be qualified for a
4:54:38payout. Now, what are some of those
4:54:40rules? Well, the payout frequency,
4:54:43there's a 5day payout frequency. You can
4:54:45only have a max amount of five accounts
4:54:46on this. But the big one is the 20%
4:54:49consistency rule. So that means you need
4:54:51to at minimum need what is that going to
4:54:55be around like five or six trades that
4:55:00encapsulate the total amount that you
4:55:02are requesting a payout payout for. So
4:55:05again, this 20% consistency rule is very
4:55:08very different from the alpha futures
4:55:1050% consistency rule. And it actually
4:55:13when you think about it in terms of risk
4:55:15and trades required to reach a payout,
4:55:18it ends up pretty much being the exact
4:55:20same thing because on this you need a
4:55:23minimum of two trading days and we know
4:55:24that it's going to take a minimum of
4:55:27three trades in order for us to be able
4:55:29to pass this. So, that means there's
4:55:31three three trades at the minimum for us
4:55:33to be able to pass the challenge. And
4:55:34then for us to be able to be qualified
4:55:37to uh or for us to be able to trade on
4:55:40the qualified account and then be able
4:55:42to receive a payout, there's no
4:55:44consistency rule, but we need a minimum
4:55:46of five trading days. So, really all
4:55:48that we need to do is we just need to
4:55:50win on one trading day. So, that means
4:55:53four trading days total. and then just
4:55:56do like the bare minimum required to be
4:55:58able to hit these trading days. So,
4:56:01realistically, you're taking four trades
4:56:04in order to get a payout on the Alpha
4:56:06Futures Advance plan and you're needing
4:56:09six winning trades in order to get a
4:56:13payout on the Tradeify plan. So, at the
4:56:15end of the day, it ends up being pretty
4:56:17much the same whether you're passing the
4:56:19challenge and then going onto a live
4:56:21account and then getting a payout or
4:56:24skipping the challenge phase and just
4:56:26jumping straight into funding due to
4:56:27this consistency rule. Now, again, I'm
4:56:30here and I'm unbiased for you guys.
4:56:32Personally, I think it's better to go
4:56:35with something like a select account
4:56:37where there's going to be daily payout
4:56:38offerings um instead of the lightning
4:56:41fun lightning funded and instant funding
4:56:43accounts. A lot of people really like
4:56:44these lightning funded accounts from
4:56:45Tradeify. I don't blame them. Um, you
4:56:48know, if you're a very consistent
4:56:49trader, you have pretty decent daily
4:56:52loss limit, pretty decent draw down, a
4:56:54good amount of contracts for for you
4:56:57guys to use, and you can stack these
4:56:58accounts. There's five accounts that you
4:57:00guys can use on on top of this. Um, and
4:57:03you don't even have to think about
4:57:04potentially passing the the eval. You
4:57:07can just jump straight into trading how
4:57:08you want. Um, so yeah, that kind of
4:57:11covers pretty much the majority of prop
4:57:14firms and how the prop firm space works
4:57:16and why it's beneficial for you guys.
4:57:17Because again, think about it like this.
4:57:20You're putting up $500 to potentially
4:57:22have access to be able to trade with
4:57:24$150,000
4:57:26as long as you can stick within these
4:57:28rules and you're going to be able to get
4:57:30payouts upwards of $2,500,
4:57:33$5,000, right? So these prop firms are a
4:57:37very, very advantageous tool. I would be
4:57:39doing you guys a disservice without
4:57:41being able to cover these and tell you
4:57:43guys the pros and cons of each of them.
4:57:44And again, if you guys want the Google
4:57:46doc going in a lot of depth about the
4:57:49growth accounts, the select accounts,
4:57:50the lightning accounts, the zero
4:57:52accounts, the standard plans, and the
4:57:54advance accounts, all of that is going
4:57:56to be in the Google doc doc below. You
4:57:58guys can use code TJR to save you save
4:58:00your guys save you guys some money on
4:58:02Alpha Futures. And remember on Tradeify
4:58:05there's a code TJR40 to be able to save
4:58:08you guys 40% off on any of these funded
4:58:12accounts. Okay? So if you guys want to
4:58:13select 150K account, you guys can use
4:58:15code TJR40. And then once you use that
4:58:1840% off code from there, if you guys use
4:58:21code TJR, all of you guys can use that
4:58:24on a daily basis. It's going to save you
4:58:26yourself 30% off. So, the first code is
4:58:28going to be TJR40 on the Tradeify one.
4:58:31And then from there, you guys can use
4:58:32code just TJR to save yourself 30% off
4:58:35on the rest of these. So, with that
4:58:37being said, I love and appreciate you
4:58:38guys. Tomorrow,
4:58:40what are we getting into? I can't
4:58:43remember. But regardless, I will see you
4:58:45guys tomorrow for another video. Now
4:58:47that I've covered every single one of
4:58:48the confluences that I use in my
4:58:50strategy, you're probably thinking,
4:58:51"Awesome. I have it." Well, no, not
4:58:54necessarily because we haven't put it
4:58:56all together and we haven't fully
4:58:57explained my strategy that I use yet.
4:58:59But also, there's a couple things that
4:59:01we want to implement with these
4:59:03confluences that are going to give us
4:59:05probability within the market, such as
4:59:07understanding our daily bias, like
4:59:08whether we think the market is going to
4:59:10go higher or lower. And then also
4:59:12understanding our risk management, like
4:59:13when we're supposed to put more risk on
4:59:15the table to be able to make more money,
4:59:17[music] or when we should maybe derisk
4:59:18because the markets are uncertain and we
4:59:20think that it's a low probability
4:59:22market. So without understanding these
4:59:24things, we will be overly cooked if we
4:59:26just jump straight into the market
4:59:27thinking that we know everything when we
4:59:29don't. So make sure you guys stay tuned
4:59:31for these next segments. It's going to
4:59:32be very important. All right guys,
4:59:34welcome to our daily bias video. In this
4:59:38you guys are going to learn how to find
4:59:39daily bias and then hopefully we can
4:59:41kind of start putting together potential
4:59:44trade ideas in your guys' headsp space.
4:59:46Um, and then after this, I think we're
4:59:49going to cover some risk management and
4:59:51then we'll finally like put together how
4:59:53we have how I'm actually looking for
4:59:54entries. I want to cover daily bias
4:59:56first because without daily bias, you
4:59:58don't know where the market's going to
4:59:59go. So, how are you going to be able to
5:00:00look for an entry or how are you going
5:00:02to look for an entry, right? And then if
5:00:06that's the case, then why the [ __ ] are
5:00:08we entering in the first place if we
5:00:09don't know where the market wants to go,
5:00:11right? So, kind of difficult. Um, so
5:00:16let's get into daily bias. Let's get
5:00:19into daily bias. So, we'll go over
5:00:21today's trade. Today, um, there was a
5:00:24pretty easy daily bias. Um, and this
5:00:28again is going to start combining all of
5:00:30the stuff that we have already learned
5:00:32thus far. So, let's look at the current
5:00:35market. What are we in? We are in an
5:00:37obvious downtrend, right? We are making
5:00:40a high then a low lower high lower low
5:00:43high lower low high lower low high and
5:00:46then that was pretty much leading us
5:00:48into market open. So what did we expect
5:00:51coming into market open? We were
5:00:52probably going to deliver a lower low.
5:00:54Now also on top of that why did we
5:00:57assume that we were going to deliver a
5:00:58lower low? We have all of this low
5:01:00resistance draws and liquidity stacked
5:01:02up. We have a low right here, a low
5:01:04right here, a low right here. Low right
5:01:05here. Low low low. a whole bunch of lows
5:01:08all stacked up throughout here. Um, that
5:01:12can give us good entries for these
5:01:15shorts within this downtrend, right?
5:01:17Because draws and liquidity can be used
5:01:20for several different things. Draws and
5:01:21liquidity can be used as entries and it
5:01:24can also be used as targets. So, coming
5:01:27into today,
5:01:29my bias was bearish. Why? Because on the
5:01:31high time frame, we had a whole bunch of
5:01:33draws and liquidity to the downside. And
5:01:36on the high time frame, we were forming
5:01:38a downtrend. Okay. So on the hourly time
5:01:40frame, we were coming into this hourly
5:01:44fair value gap. So awesome. If this is
5:01:46going to continue being a downtrend, I
5:01:49am going to safely assume or we need to
5:01:52see price come into this fair value gap
5:01:55and respect it. If that gets respected,
5:01:57where is price going to draw? down to
5:02:00all of these high time frame low
5:02:03resistance draws and liquidity. Today
5:02:05was about as easy as it gets, right? We
5:02:07identify what the high time frame is
5:02:09doing. Awesome. The high high time frame
5:02:12trend is in a downtrend. We see, okay,
5:02:15there's very awesome draws and liquidity
5:02:17to the downside that price could want to
5:02:19go down to target. And then from there,
5:02:21we look at current price action and we
5:02:24see, okay, we just made a high and we
5:02:25just made a lower low. So in turn, what
5:02:28is price going to need to do? It's going
5:02:30to retrace. And what is one of our two
5:02:34retrace confluences? Matter of fact, we
5:02:36can use both here. We use fair value
5:02:38gaps in equilibrium. So we see a fair
5:02:40value gap formed right here. Awesome. If
5:02:42this downtrend is going to hold, this
5:02:45fair value gap is going to get respected
5:02:46and then we are going to target all of
5:02:48these lows. Let's say you didn't see
5:02:49this massive fair value gap and you just
5:02:52wanted to look at equilibrium. Well,
5:02:54awesome. from this high down to this
5:02:56low. What do what else do we do? We come
5:02:58up, we fill the fair value gap, and on
5:03:00top of that, we hit equilibrium and then
5:03:02we deliver lower to the draws and
5:03:03liquidity. So, that was a good example
5:03:06from today. Let's go and show some
5:03:10examples from yesterday. I'm going to I
5:03:13want to leave my NASDAQ drawings on
5:03:16there because I have a call with my
5:03:19blueprint students, which again, if you
5:03:21guys want to join the blueprint and you
5:03:23guys want extra help with coaching where
5:03:25it's like a little bit more direct, you
5:03:26guys can ask me your personal questions
5:03:29on um what happened for you guys on the
5:03:32charts today. I'll leave a link down in
5:03:34the description for you guys to get
5:03:35coaching from me. So, let's look at
5:03:37this. So, if we can just drag this to
5:03:40right here.
5:03:43Awesome. Let's look at the high time
5:03:45frames here. So, high time frame, what
5:03:47are we in? We are in an uptrend, believe
5:03:50it or not, right? We have a high, then
5:03:52we have a higher high. And you're
5:03:53probably saying, "Oh, well, no, we made
5:03:55a lower low." Well, that is the case. We
5:03:57did make a lower low. However, this low
5:04:00is actually coming down and it's
5:04:01sweeping out this low right here. And on
5:04:04top of that, we are yet to break
5:04:07structure to the downside. So, in my
5:04:09opinion, right, especially coming into
5:04:11New York market open, we know that
5:04:12there's going to be some forms of
5:04:14manipulation. We can safely assume, and
5:04:16again, like this is happening, all of
5:04:18this happens before we're even looking
5:04:20for a trade. So, regardless, it's like,
5:04:23okay, we we might be in a downtrend and
5:04:26then boom, this massive candle forms and
5:04:28it's like, okay, we're probably not in
5:04:29that downtrend anymore. So on the 1 hour
5:04:32time frame, what are we looking at here?
5:04:34Well, we see that we come down, we sweep
5:04:36out a high time frame low. So awesome.
5:04:38We get a high time frame liquidity
5:04:40sweep. So what do we know about this? We
5:04:42know that orders have been filled down
5:04:43here. Where does price need to go in
5:04:46order to get out of these orders? Right?
5:04:48If we're buying low, where are we going
5:04:50to want to do? We're going to want to
5:04:51sell high. So, if we enter into a bunch
5:04:54of buy orders, where is there going to
5:04:56be a bunch of uh resting buy orders for
5:04:58us to enter into sell orders to be able
5:05:01to liquidate this position right here,
5:05:02right? Cuz we got to think, we pushed
5:05:04underneath these lows. Why did we push
5:05:07underneath these lows? Because there was
5:05:08a lot of sell orders in order to fill
5:05:10our buy orders. So, when we're going
5:05:12back higher and we're looking to get out
5:05:14of this position, we're looking where
5:05:15there's going to be a lot of buy orders
5:05:17where we can enter into sell orders to
5:05:19be able to get out of this buy order
5:05:21position right here. Right? So, again,
5:05:23trying to use reverse psychology on the
5:05:25market. So, what do we see price do? We
5:05:29come up. Awesome. We form this big big
5:05:32hourly candle to the upside. We're
5:05:34already in an uptrend. How can we
5:05:36identify that? Well, we get an inverse
5:05:38of this hourly gap right here. here and
5:05:41then we also get a 1 hour candlestick
5:05:44closer to the upside. So again, we're
5:05:46not going to get into entries here, but
5:05:48I can show you on the 5minut time frame
5:05:51that even though we're forming a whole
5:05:54bunch of up candles, there is going to
5:05:55be a good enough um and good retraces or
5:06:01some a continuation trade to be taken to
5:06:04be able to target these highs. is again
5:06:06where does price need to go in order to
5:06:09liquidate the buy orders from down here,
5:06:11right? They need to push it up above
5:06:13here to to be able to take profit and to
5:06:14be able to exit out of those buy orders.
5:06:16So, if we just go and play the rest of
5:06:20this candle or the next candle,
5:06:23we can see that the next couple candles
5:06:25end up pushing up and hitting full take
5:06:28profit or this draw on liquidity right
5:06:30here. And if we go down to the lower
5:06:32time frame again, we can see that
5:06:35there's plenty of opportunity within
5:06:37here. We see price retrace into a
5:06:39fiveminute fair value gap, right? There
5:06:40could have been longs off of that with
5:06:41stops underneath this candlestick. And
5:06:43then this could have been our
5:06:44take-profit. Um, we could have even
5:06:46gotten lower on the low time frames. We
5:06:48can see a low time frame 5 minute sweep
5:06:50of these lows right here. And then we
5:06:52would just be looking for a change of
5:06:54order flow for a breaker structure to
5:06:55the upside. Boom. Could have longed off
5:06:57of that. Stops underneath here. First
5:06:59take profit, second take profit. There's
5:07:00a whole bunch of different ways that we
5:07:01could have looked for entries off of
5:07:03this, but again, the focus today is our
5:07:06daily bias. So, how did I come up with
5:07:09our our bullish daily bias today? Well,
5:07:12I looked and I see, okay, during
5:07:14pre-market, what did we do? We came down
5:07:16and we manipulated these lows. From
5:07:18there, we inversed this fair value gap
5:07:21on the hourly time frame. So, what do I
5:07:24see? We're currently in a downtrend
5:07:26coming down. Then we sweep out a draw on
5:07:28liquidity where orders have the
5:07:30potential to get formed. And then boom,
5:07:32we disrespect this fair value gap, which
5:07:35means to me, hey, we're probably no
5:07:37longer going to be in bearish price
5:07:39action. Because if we were going to be
5:07:41in bearish price action, we would have
5:07:43respected this gap and we would have
5:07:44continued lower to take out this low and
5:07:46this low. But that's not what price did.
5:07:48What did price do? It closed above this
5:07:50gap, signaling to me, hey, price wants
5:07:53to go higher. We just invalidated this
5:07:55hourly gap. And if we wanted to go
5:07:58lower, we would have respected it to
5:07:59push price down to these draws and draws
5:08:01and liquidity right here. That's not
5:08:02what happened. And then what does price
5:08:04end up doing? We know that we filled
5:08:05orders right here. We know that the low
5:08:07the high time frame trend got
5:08:08invalidated right here. So where does
5:08:10price need to go to the next draw on
5:08:12liquidity right here.
5:08:15All right, let's go and look at the next
5:08:20day. So this was Monday. Let's go ahead
5:08:23and let's look at some Friday price
5:08:26action. All right, so let's look at
5:08:28this. This again is pretty clean price
5:08:31action. Okay, we see initially we're in
5:08:34a downtrend, right? We break structure
5:08:36to the downside right here. But then
5:08:37when do we break structure back to the
5:08:39upside once we get a candlestick closure
5:08:41above this high right here. So boom, we
5:08:43are in a 4hour uptrend. If we go down to
5:08:46the hourly time frame, it's a little bit
5:08:48clearer for us, right? You can see the
5:08:504hour high is right here. We break above
5:08:52it. We come down. We continue higher,
5:08:54higher, higher. And on the one 1 hour
5:08:57time frame, we are in a very obvious and
5:09:00clear uptrend. So once again,
5:09:03I mean, it's it's very very obvious to
5:09:06me that what is our draw on liquidity
5:09:08going to be? It's going to be these
5:09:09highs right here. Right now, why is that
5:09:12the case? Well, we are in an uptrend and
5:09:14right now we are perfectly respecting
5:09:17the current hourly bullish order flow.
5:09:20We have a high right here. Awesome. We
5:09:22have a low right here. We push past that
5:09:24high. We have a higher high right here.
5:09:27And then we have a higher low right
5:09:30here. And then from there, we push up.
5:09:31We make a higher high. And then we're
5:09:33about to form another higher low. Now,
5:09:36coming into the market on this day, what
5:09:38am I going to be looking for? I'm going
5:09:39to be looking for some form of
5:09:41manipulation because we don't really get
5:09:42much manipulation and as we know if we
5:09:46we typically are going to want to look
5:09:47for some sort of manipulation whether
5:09:49it's coming from London session during
5:09:51Asian session or come New York market
5:09:53open we do have hourly manipulation
5:09:55right here um but coming into the low
5:09:58time frames we
5:10:01we don't really have much we have these
5:10:03equal lows right here
5:10:08do we invalidate this gap up here. No,
5:10:10we don't. So, me personally.
5:10:15I mean, it looks it looks okay. I would
5:10:17want to see how these next couple
5:10:18candles close. So, what we can do is we
5:10:21can
5:10:25play this.
5:10:29Can it print?
5:10:36Okay. So again, well again, we're not
5:10:39we're not looking for entries just yet,
5:10:41but I see these equal lows. I want
5:10:43because New York market hasn't given us
5:10:46any form of manipulation yet. I'm going
5:10:48to be looking for some form of
5:10:49manipulation, whether it's 5minute
5:10:50manipulation or an hourly manipulation
5:10:54of these lows down here or again, I
5:10:57mean, we kind of get a sneak peek or
5:10:59hindsight of what price wanted to do
5:11:00down here. Um, but we'll continue
5:11:03playing this and then see where price
5:11:05goes from here.
5:11:10Okay. So, boom. Just like that. Okay.
5:11:13Let's pause it. So, boom. Just like
5:11:15that. Can this not keep printing
5:11:16candlesticks? So, just like that, we end
5:11:18up coming down again. We know our
5:11:21targets are these hourly highs all the
5:11:23way up here. But what do we need? We
5:11:26need to be able to fill orders in order
5:11:28to get up to these hourly highs. So,
5:11:30where do we have the potential to fill
5:11:31orders? Underneath these lows and
5:11:33underneath these lows. cuz what gives us
5:11:35the potential to fill orders? Draws on
5:11:37liquidity. So if we're looking to target
5:11:39these highs, just like we showed in the
5:11:41last example, we had a liquidity sweep
5:11:44and then from there we could go up and
5:11:45target the highs. This is the same case,
5:11:47right? We need a liquidity sweep to
5:11:49either take out these lows and these
5:11:51lows. And in um the S&P 500's case to
5:11:54then be able to liquid to then be able
5:11:56to again fill orders down here,
5:11:58liquidate the orders up here. Right?
5:12:00We're pushing underneath areas where a
5:12:02lot of sell orders are going to get
5:12:03filled. And in that case, we're going to
5:12:05fill buy orders and then price is going
5:12:07to end up going up to an area where
5:12:09there's going to be a lot of buy orders
5:12:10so that we can enter into our sell
5:12:12orders and take profit on these
5:12:14positions that were taken down here.
5:12:16Okay. Now, again, we aren't going to be
5:12:18entering um on
5:12:21we aren't going to be smart enough to be
5:12:23able to press buy right underneath these
5:12:25lows. Um, however, we are going to be
5:12:29able to be able to catch this move and
5:12:32to be able to target these highs. So,
5:12:33again, if we just play this a little bit
5:12:35more,
5:12:38there we go. We just got a fiveminute
5:12:40break of structure to the upside. We
5:12:41just took out these highs. Awesome. Now,
5:12:44if we I don't want to jump ahead, but if
5:12:46we look at the hourly candle, we can see
5:12:47boom, sweep down, orders filled, orders
5:12:50filled. And then if we go down to the
5:12:515minute, we can see boom, sweep down,
5:12:54orders filled, orders filled. Now, we
5:12:55just broke five minute structure to the
5:12:57upside. Now, what am I going to be
5:12:59looking for? We see boom, orders got
5:13:01filled. We were initially in a
5:13:03downtrend. Now, we're in an uptrend.
5:13:04What do I want to see following this? I
5:13:06want to see potential continuation so
5:13:08that we can go ahead and target these
5:13:09highs up here. So, we'll play this a
5:13:11little bit more. And this is just giving
5:13:12you guys like a little sneak peek of
5:13:16potentially like the type of entries
5:13:18that we're looking for.
5:13:23Okay, so we get a little dogey candle.
5:13:25Let's see if we get any sort of
5:13:26retracement into
5:13:33any of our confluences.
5:13:35We have a fair value gap right here.
5:13:51Boom. We get a big push down. Now again,
5:13:53just because we close underneath this
5:13:54gap doesn't mean that this entire
5:13:56uptrend is invalidated because we have
5:13:58another gap right here. Matter of fact,
5:13:59we have another gap down here. So for
5:14:03this entire trend to get invalidated, we
5:14:04would have to invalidate this gap down
5:14:07here. And actually, this is a gap that I
5:14:09would want to target because it's
5:14:10underneath equilibrium. And this is
5:14:12actually in a discounted price range
5:14:14because again, we're looking to take
5:14:15longs in discounted price range. So
5:14:17we'll see what price wants to do from
5:14:19here.
5:14:22Boom. Awesome. We tapped into discounted
5:14:25price range and we pushed past this fair
5:14:27value gap. So, at this point in time,
5:14:29I'm seeing this and I'm saying, "Okay,
5:14:31lit. We just came down. We filled the
5:14:33fair value gap. We filled the
5:14:34equilibrium. From there, what am I going
5:14:36to be looking for? I'm finally going to
5:14:37be able to reposition my targets and
5:14:39look look for these highs."
5:14:54And what do you freaking know? Take
5:14:55profit gets hit.
5:14:58I mean, as if the strategy wasn't given
5:15:00to you guys in this video, hopefully you
5:15:02guys are starting to get it now. Again,
5:15:04what do we need in order to get up to
5:15:06these highs? Obviously, these highs are
5:15:08our draw on liquidity for the day, but
5:15:10we need orders, right? We need to sweep
5:15:12out liquidity in order to push to this
5:15:13draw on liquidity. How do we do that? We
5:15:15get into the low time frame. We see
5:15:17price come down underneath these hourly
5:15:18lows, underneath these hourly lows.
5:15:20Awesome. We know that we have potential
5:15:23to fill orders here. How do we know that
5:15:24orders were filled? Will we get a break
5:15:26of structure to the upside on the
5:15:275minute? From there, what are we looking
5:15:28for? We're looking for a continuation of
5:15:30the new trend that is formed. So, what
5:15:32confluences can we use? We can use our
5:15:35equilibrium confluence. We can use our
5:15:38fair value gap confluence. Awesome. In
5:15:40this case, we end up closing underneath
5:15:41this fair value gap, but that doesn't
5:15:44dis that doesn't disqualify this
5:15:45uptrend. Why? Because we still have
5:15:46equilibrium and we still have a fair
5:15:48value gap right here that could could
5:15:49have potentially been uh tapped into for
5:15:52us to be able to push higher. Price
5:15:54comes down, pokes into equilibrium, and
5:15:56then as I told you guys, we will from
5:15:58there look for price to move higher.
5:15:59What does price end up doing? Boom.
5:16:01Moves higher, takes out our draw
5:16:02liquidity. Beautiful, beautiful,
5:16:03beautiful. Let's show one more example
5:16:04of this, and then hopefully you guys
5:16:07will have gotten the point. So, let's go
5:16:11ahead and put
5:16:14Oh, this was a super ugly day, but
5:16:18uh because this was the day before FOMC,
5:16:21let's do a different day. Let's do
5:16:50Okay, this one's a little bit difficult,
5:16:52But
5:16:56see what we got going on here. So,
5:17:01okay.
5:17:13So, on the 4hour time frame, what are we
5:17:15in? We are in a very obvious uptrend,
5:17:17right? We have these draws in liquidity
5:17:20over here. This this is super high up. I
5:17:23remember on this trading day I
5:17:24specifically was not super in favor of
5:17:27going long just because we had these
5:17:30super high draws and liquidity over
5:17:31here. But I mean it is what it is. You
5:17:33kind of have to play with what you play
5:17:35with what you can get. Um so boom. We
5:17:39have these right here as well. Awesome.
5:17:42Awesome. Awesome. Okay. So on the 4 hour
5:17:46time frame what do we see? Okay.
5:17:48Awesome. We are in an uptrend. We just
5:17:50came down, swept out this low,
5:17:52invalidated this gap. Now we have a
5:17:53high, a low, higher high, higher low,
5:17:56higher high, making or forming a higher
5:17:59low with this action right here into
5:18:01this 4hour gap. So once we're filling
5:18:03this 4hour gap, what are we thinking?
5:18:05Okay, price either can do one of two
5:18:07things. We can either come down,
5:18:09invalidate this gap, and then from
5:18:10there, what are we what are we going to
5:18:12be targeting? We're going to be
5:18:13targeting this low and this low because
5:18:15we're invalidating the bullish
5:18:17continuation confluence for price to
5:18:18move higher. Okay. From there, how do we
5:18:21know that this bullish confluence was
5:18:23actually pushed into and respected?
5:18:24Well, we start printing up like
5:18:26literally up only candles from the
5:18:29hourly time frame. From there, we end up
5:18:31getting an hourly break of structure
5:18:32from us pushing above this hourly high
5:18:35right here. Okay. So, we see 4hour dip
5:18:38into the 4hour fair value gap. How do we
5:18:40know that the 4-hour fair value gap is
5:18:41respected? because we end up breaking
5:18:43one 1 hour structure out of that saying,
5:18:45hey, we're going to continue this
5:18:46higher. Now, from here, once we push
5:18:49above that hourly gap, we can scale down
5:18:51to the low time frames and identify the
5:18:53current trend. So, we can see, awesome,
5:18:55we get the sweep. Awesome. We have a
5:18:58high, low, higher high, higher low,
5:19:00higher high, higher low. We just
5:19:01finished making a higher high. So, what
5:19:03are we probably going to do? We're
5:19:04probably going to make a higher low. On
5:19:06top of that, on market open, what did we
5:19:08do? We manipulated these low time frame,
5:19:10low time frame lows. So, we already got
5:19:12some form of manipulation. We could
5:19:14potentially grab a little bit more if we
5:19:16wanted to revisit these lows right here
5:19:19or potentially this low and this low
5:19:22over here. Okay, there's potential for
5:19:25that if we end up invalidating this gap
5:19:28right here. So, we're already in a very
5:19:30key position, right? Because if price
5:19:33invalidates this gap, what then am I
5:19:35going to be targeting for the day? I'm
5:19:37going to be targeting this this low,
5:19:38this low, this low, right? even though
5:19:40my bias is bullish. However, if we end
5:19:43up respecting this gap and then pushing
5:19:45higher, I can safely assume, hey, we're
5:19:47probably going to want to push higher
5:19:48and then I can go and try and find some
5:19:50lower high time frame highs that I can
5:19:52use as like take-profit points all the
5:19:54way through here because I'm not going
5:19:56to want to set this as my take as my one
5:19:58and only take profit all the way up
5:20:00there. Okay, so with that being said,
5:20:04let's play this out. Let's see what
5:20:05happens. Boom. So, perfect. See, this is
5:20:08why we want to be patient. Awesome. we
5:20:10end up inversing this gap right here.
5:20:13So, what do we know? Hey, we want to go
5:20:15lower. And unfortunately for us, when we
5:20:18inverse that gap, we end up taking out
5:20:20this low. However, we still have
5:20:22opportunity to go lower down to this low
5:20:24and this low. And then from there, you
5:20:26know, maybe we can retarget retarget
5:20:27these highs. But what is a key position
5:20:29that we are going to want to be looking
5:20:31for? Just like how we had this gap right
5:20:33here. I'm going to be looking at now
5:20:35this gap because again, if this is going
5:20:38to be bearish order flow after inversing
5:20:40that gap, what should price do? Price
5:20:43should technically come up, give us a
5:20:44retrace into equilibrium or into this
5:20:46fair value gap, and then from there give
5:20:48us bearish confluences. If that's the
5:20:50case, awesome. We're going to go lower.
5:20:52However, if price comes up and then
5:20:54closes above this fair value gap, what
5:20:56can I safely assume? Price just wanted
5:20:58to come down, sweep out this liquidity
5:21:00to then send it higher, right? There's
5:21:02lots of conditions with this. we kind we
5:21:04always are staying on top of it and
5:21:06looking at the the the trends of the
5:21:09markets and what current order flow
5:21:10we're in. So, let's play it and let's
5:21:12see what price does.
5:21:15Okay, so we end up pushing pushing
5:21:17slightly lower here. Let's see if price
5:21:18is even able to give us an entry.
5:21:24So, we were unable to get an entry
5:21:25there. However, we're in again another
5:21:28advantageous point. Why? because we just
5:21:30took out this draw in liquidity and now
5:21:32both of these draws in liquidity. So now
5:21:34we're in the same exact position that we
5:21:36were in right here. Are we going to
5:21:39continue lower by respecting this gap or
5:21:43are we going to disrespect this gap and
5:21:46then are we going to be able to target
5:21:47all of these highs that are up here as
5:21:49draws on liquidity? Well, personally,
5:21:52because this is our 4hour low, and if we
5:21:55are going to continue respecting this
5:21:574hour uptrend, which we just did on this
5:22:01bullish 4hour candle closure to the
5:22:02upside, I think that we are going to be
5:22:05moving higher out of this out of this
5:22:08liquidity sweep, right? Because we're
5:22:10respecting high time frame uh
5:22:12continuation confluences right here. I
5:22:14don't really think that we're going to
5:22:15come up and then boom,
5:22:18destroy this low because we just used we
5:22:20just h put this low in as a respecting
5:22:22point. So, I'm going to be looking at
5:22:24this inverse value gap. Honestly,
5:22:26looking for it to get invalidated. So,
5:22:28let's see.
5:22:31Okay, we don't quite invalidate it just
5:22:33yet. Let's see what the next candle
5:22:34looks like.
5:22:37Boom. Okay, so good at this. Boom. Price
5:22:41invalidates this. And then from there,
5:22:43to be honest, like I would be willing to
5:22:44enter into a buy position and then just
5:22:46go ahead and target this high right here
5:22:48and then whatever I would look on the
5:22:50lower time frames and scroll all the way
5:22:52over here to look for other entry
5:22:54points. Um, and again, this is one of
5:22:57these later later entries where it
5:23:00happens a lot later in the day and price
5:23:03um, again like some of these trades
5:23:06again, we're just kind of like going
5:23:07over it and like mocking mocking [ __ ]
5:23:10up. Um so we came up and took this out.
5:23:13Um
5:23:15but hopefully you guys are getting
5:23:17getting the point. This isn't to cover
5:23:18entries. This is to cover daily bias.
5:23:20Again, we are looking at the current
5:23:22draws and liquidity. And where price
5:23:24wants to go, right? We are in this case
5:23:27we what were we in? We were in an
5:23:28uptrend on the 4 hour. We were pushing
5:23:30into a fair value gap. So what do we
5:23:31expect price to do? We expect price to
5:23:33respect this fair value gap and push
5:23:35past these highs and take out other
5:23:36draws and liquidity over here. Because
5:23:38again, how does a trend move? It moves
5:23:41from
5:23:42boom high.
5:23:45Okay. Down to fair value gap
5:23:47equilibrium. Then back up to what? High.
5:23:51Then down into what? Fair value gap or
5:23:53equilibrium. Then back up to what?
5:23:55Highs. Okay, that's how uptrends move.
5:23:58It moves from external to internal.
5:24:00External to internal. External to
5:24:02internal. Same thing with downtrends.
5:24:05Okay, we move from boom,
5:24:09internal to external,
5:24:14internal
5:24:16to external. Right? When we push into
5:24:20our bearish confluences, we are
5:24:22expecting to push down back to the lows.
5:24:25When we push into bearish confluences
5:24:26and then we get bearish confirmation, we
5:24:28are expected to push down to the lows.
5:24:30Okay? Same thing when we push back. When
5:24:32we push underneath these lows, what are
5:24:34we expecting price to do? Retrace into
5:24:37the internal, right, into our
5:24:39continuation confluences. That's the es
5:24:42and flows of the market. Okay, we go
5:24:44from pushing underneath a low. Once that
5:24:47happens, hey, price is probably going to
5:24:48come up and fill a fair value gap or hit
5:24:50equilibrium. Once price goes up and
5:24:52fills a fair value gap or hits
5:24:53equilibrium, hey, price is probably
5:24:55going to want to come down and take it
5:24:56take this low out. It's the es and flows
5:24:58of the market. It's how the market
5:25:00moves. And hopefully that gave you guys
5:25:02a better idea of how we get how we can
5:25:04establish daily bias coming into the
5:25:06market. We are really just looking for
5:25:08where where was our most recent
5:25:09liquidity sweep or are we currently
5:25:11sweeping liquidity. On top of that, what
5:25:14are our high timeframe imbalances and
5:25:17equilibrium levels that we are looking
5:25:18at within this current trend in the
5:25:20market. Let's do one more example where
5:25:23we don't necessarily go like
5:25:24full-fledged deep dive. Um but we can
5:25:28show
5:25:35boom
5:25:43boom.
5:25:51No.
5:25:53What did I do?
5:25:56Is that today? Oh, I'm an idiot.
5:26:02Okay,
5:26:05let's look at this real quick. So, boom,
5:26:09we'll go right here. Awesome. So, what
5:26:11do we see price doing before market
5:26:13opens? We see price come down. Oh my
5:26:15goodness, we just broke hourly structure
5:26:17to the downside. At least that's what
5:26:19we're thinking at first, right? That's
5:26:21what we're thinking at first. We say
5:26:23okay if price is going to continue this
5:26:25downtrend what does price need to do?
5:26:27Well price needs to come up and it needs
5:26:29to fill this fair value gap or it needs
5:26:31to hit equilibrium and then it needs to
5:26:33continue lower. Right? Correct. So price
5:26:37makes this fair value gap. Price comes
5:26:39up and then we get a down candle right
5:26:41here. Did that hit this fair value gap?
5:26:44No. Did that hit equilibrium? No. Uh-oh.
5:26:48And then in turn, what does that do?
5:26:50That creates a high. We get a move up
5:26:51and a move down. So now this is the high
5:26:53that price has to respect in order for
5:26:56us to continue this downtrend. This
5:26:58should be the lower high. What does the
5:27:00hourly time frame end up doing? Boom. We
5:27:02rip up. We break structure to the
5:27:04upside. So what is that telling me? We
5:27:06are now in bullish order flow. So now I
5:27:08no longer give a [ __ ] about this for
5:27:09value gap right here. We are in bullish
5:27:11order flow. And where do we need to
5:27:13target? Boom. These highs. Now
5:27:15unfortunately price already came up and
5:27:18took care of business right there. right
5:27:20when market opened. But we can see that
5:27:22this is uh this is like super super
5:27:24clean price action. Right? If we go into
5:27:28the lower time frames, we have this high
5:27:31time frame drawing liquidity right here.
5:27:32We can see on the 5m minute we come
5:27:35down, we sweep out this low right here.
5:27:37And then boom, we break structure to the
5:27:39upside. From there, we come into this
5:27:425minute fair value gap. Push down, push
5:27:44up. bullish confirmation that hey, the
5:27:47five minute was previously in a
5:27:49downtrend. We break structure to the
5:27:51upside. Now we're respecting this new
5:27:53five-minute trend that we made. And
5:27:54where are we going to want to target?
5:27:56These highs right here. And the rest is
5:27:59history. We moved a lot higher than
5:28:00that. So that's another good example of
5:28:03us like literally just looking at the
5:28:05high time frame trends, identifying our
5:28:08continuation confluences, and
5:28:09identifying our draws and liquidity and
5:28:11looking for price to either respect it
5:28:13or disrespect it. And then in turn,
5:28:15we're able to develop a bias based off
5:28:17of that. Okay. On top of that, we're
5:28:20we're hopefully you guys have learned
5:28:21from this video, we're trying to look at
5:28:24our potential draws and liquidity as
5:28:26well. So, not only, and I know I make it
5:28:29seem like a little bit easy, but not
5:28:31only am I looking and seeing, okay,
5:28:33price came down and we pushed underneath
5:28:36these lows, so now we're in a downtrend,
5:28:37but uh-oh, we just broke structure to
5:28:39the upside. Once I see that breaking
5:28:40structure to the upside, what am I
5:28:42immediately doing? I'm immediately
5:28:44looking at what potential draws and
5:28:45liquidity do we have to the upside for
5:28:47price to go up and take out. I
5:28:49immediately saw this high right here
5:28:50which is Asia session high and then I
5:28:52see this high right here which is
5:28:54previous day high. So we have two
5:28:56significant draws in liquidity to the
5:28:58upside.
5:29:00Where is price going to want to draw
5:29:02towards those draws and liquidity? Why?
5:29:04Because we just broke structure to the
5:29:06upside right here. We are in an uptrend.
5:29:08We come down. We fill equilibrium.
5:29:09Awesome. Then on the 5minute we see low
5:29:11time frame confirmation. We are going to
5:29:13want to long.
5:29:16Beautiful, beautiful, beautiful. So,
5:29:18that wraps up our daily buys for today.
5:29:21Um, tomorrow, I can't remember what
5:29:22we're covering. I think it's going to be
5:29:23risk management. And then
5:29:26I think we're [snorts] ready for some
5:29:28executions and how to actually put this
5:29:30[ __ ] to work. So, that being said, love
5:29:31and appreciate you. Appreciate you,
5:29:32boys. I'll see you guys tomorrow. What
5:29:34up, guys? And welcome to another Path to
5:29:36Profitability video. Um, I'm sorry. I
5:29:39completely forgot to film this yesterday
5:29:41and it was like it's it may be because
5:29:44it's such like a small and short video
5:29:46that I forgot to film it. Um but yeah,
5:29:49sorry forgot to like literally
5:29:51completely forgot. Um but today is going
5:29:54to be short and simple. It's going to be
5:29:56on risk management.
5:29:58There are three skill sets that we need
5:30:01to learn as traders to make us overall a
5:30:04profitable tra trader. We need strategy,
5:30:07which we have the bare bones now for.
5:30:09We've learned pretty much every single
5:30:11confluence that I use within the markets
5:30:13to be able to execute. We just haven't
5:30:15put it all together and how I look to
5:30:17execute just yet. Um, we've also
5:30:19identified how we can finally daily bias
5:30:21in the market. So, we're pretty set on
5:30:23strategy besides me actually giving you
5:30:25the full-fledged sauce. And I've been
5:30:26edging you guys, waiting, waiting,
5:30:29waiting, waiting to be able to give that
5:30:30to you guys because most of the time
5:30:31people just watch that video and then
5:30:33they're just like, boom, goodbye. like
5:30:35I'm just going to take this and run. So
5:30:36that's why we're doing risk management
5:30:38before strategy. So we need strategy, we
5:30:40need good risk management, and then we
5:30:42also need good psychology. Okay,
5:30:43psychology literally just means sticking
5:30:46to both of these things. Like at the end
5:30:48of the day, people are always like, "How
5:30:50do I get good psychology in trading?"
5:30:52Well, it's as simple as sticking to your
5:30:54trading plan and sticking to your risk
5:30:55management plan. That's literally all
5:30:57psychology is. I don't know. I think
5:30:59people like even myself included like
5:31:02when I was trying to learn how to trade
5:31:03and especially when I first turned
5:31:04profitable I was like rah rah rah
5:31:06psychology is the biggest and best thing
5:31:07that you need to learn how to do when
5:31:09you're day trading. But then once you
5:31:11actually get good at trading you kind of
5:31:13start thinking about it in a different
5:31:14way and you actually realize like okay
5:31:18it's like psychology isn't like like
5:31:22what even [ __ ] is psychology. So
5:31:24today is going to be like risk
5:31:25management and psychology combined. Um,
5:31:27but psychology is literally just
5:31:29discipline. Like just discipline as the
5:31:32skill set. And it's the discipline to be
5:31:34able to stick to your strategy. Only
5:31:36take trades when your strategy presents
5:31:38itself. And stick to your risk
5:31:40management plan. Don't over risk, don't
5:31:42overleverage, and don't overtrade. If
5:31:44you do these two things correctly, then
5:31:46you technically have good psychology. If
5:31:49you fail to stick to your trading plan,
5:31:50then you have bad psychology. If you
5:31:52fail to stick to your risk management
5:31:53plan, you have bad psychology. So again,
5:31:56for me, as somebody who has relatively
5:31:59good psychology within the market, I
5:32:01just think it's like a skill that just
5:32:04comes along with already being good at
5:32:06the other two skills. Like if you stick
5:32:08to these two skills, then you
5:32:09automatically get this one, but if you
5:32:11can't stick to these two two skills,
5:32:13then you never get this one right here.
5:32:15So, it's kind of a weird concept because
5:32:18there's literally nothing that I can get
5:32:20on here and tell you to do um that's
5:32:25going to make you a like a better like
5:32:29to give you better psychology. Like
5:32:30there's literally not one single thing
5:32:33like I can't tell you something
5:32:34motivating. I can't tell you some sort
5:32:35of homework for you to do to make your
5:32:38psychology be better about trading. It's
5:32:40literally all dependent on you and just
5:32:44if you want to become a profitable
5:32:45trader or not. So what do I mean by
5:32:48that? It's it's literally determined on
5:32:50okay are you going to stay disciplined
5:32:52to the two things that we know for a
5:32:54fact creates a profitable trader.
5:32:57Sticking to a trading plan and using
5:32:59correct risk management. If you do both
5:33:01of these things then you get psychology
5:33:04and you also will be able to become
5:33:06profitable. Now, it's a lot more
5:33:09difficult than you think to just say,
5:33:12"Yes, I'm going to stick to my strategy
5:33:13and yes, I'm going to stick to my risk
5:33:15management plan." Um, because we
5:33:17obviously as humans have a lot of
5:33:19emotional attachment to money. However,
5:33:22at the end of the day, if you really
5:33:24wanted to, if you truly want to be a
5:33:26full-time day trader, you would just do
5:33:28the things that you're required to do in
5:33:30order to get there. So, I'm telling you
5:33:32right now, the only piece of
5:33:34psychological advice that I have for you
5:33:35guys as day traders is if you want it
5:33:38bad enough, you will stick to your day
5:33:41trading strategy and you will stick to
5:33:43your risk management plan. Because there
5:33:45is no other way in the entire world that
5:33:49you are going to become a profitable
5:33:50trader without sticking to both of
5:33:52these. Because without sticking to both
5:33:54of these, then you don't have good
5:33:56psychology within the markets. And what
5:33:58does it mean by sticking to these? means
5:34:00only taking a trade when your strategy
5:34:02presents itself, using correct risk
5:34:05management, which we'll talk about
5:34:06today. There's different variations and
5:34:08different ways that we can use correct
5:34:09risk management. And that's that's
5:34:11literally it. Like, if you stick to your
5:34:13strategy and if you make sure that
5:34:16you're risking the correct amount,
5:34:19you're going to be a profitable trader.
5:34:20Like if your strategy based off of data
5:34:24through like a trading journal such as
5:34:25like Trade Zella um proves to you
5:34:28through through statistics that you have
5:34:30a positive win rate and a positive
5:34:32risk-to-reward ratio, you are a
5:34:34profitable trader and all you have to do
5:34:37is stick to that strategy that has a
5:34:40proven pro that has a proven probability
5:34:43in the market and just use correct risk.
5:34:47Like use a consistent risk that is not
5:34:50going to blow your account if you lose a
5:34:52couple trades in a row. Use a consistent
5:34:54risk that isn't going to blow your
5:34:55account if you have a losing month or
5:34:57another losing month after that. Right?
5:34:59We just want to be using a consistent
5:35:02amount of risk that is going to again
5:35:04with the stats provided from our
5:35:06strategy going to make us a profitable
5:35:09day trader. So again, psychology as like
5:35:14all I know you guys are probably
5:35:15watching this video and you're probably
5:35:17thinking, well, damn, like I thought
5:35:18psychology was like a huge thing in
5:35:20trading. It is. It really is. It's it's
5:35:23massive in trading and it's why the
5:35:24majority of people are unable to turn
5:35:26profitable. But at the end of the at the
5:35:28end of the day, it's not like it's not
5:35:31something that you can
5:35:35like like work on or grow. It's just
5:35:37like, do you want to turn profitable or
5:35:40not? It's like if you want to turn
5:35:42profitable, then you stick to your
5:35:43strategy and you stick to your risk
5:35:44management risk management plan. And you
5:35:48kind of just have to be real with
5:35:49yourself and you're probably saying,
5:35:50"Well, I want to turn profitable, but my
5:35:53psychology still sucks." Well, it's
5:35:55because you're thinking about trading in
5:35:56the wrong way. Okay? So, it's not your
5:35:58psychology. You're thinking, "I want to
5:35:59get rich quick." And if you're thinking,
5:36:01"How can I get rich quick?" That's going
5:36:03to be by taking trades that aren't in
5:36:05line with your strategy because you're
5:36:07going to be trying to take as many
5:36:08trades as possible. And that also means
5:36:10ramping up the leverage and ramping up
5:36:12your risk every single trading day so
5:36:14that you can win more on a trade and get
5:36:16rich quick. So in turn, what are you
5:36:19doing? You're breaking both strategy and
5:36:20risk management. So again, do you want
5:36:24to turn profitable or not? And hopefully
5:36:27this goes without saying, trading is not
5:36:30something that is going to get you rich
5:36:32quick. Okay? If you think that you're
5:36:34going to get into trading and make a
5:36:36[ __ ] ton of money within the span of a
5:36:39couple months,
5:36:41you're in the wrong business, dude, and
5:36:42you're you're not doing you're you're
5:36:44not in the right space. Um, so hate to
5:36:47break it to you. If you thought you were
5:36:48going to get into trading and become a
5:36:49freaking billionaire within the first
5:36:52couple months, um you should look into
5:36:55buying lottery tickets because there's
5:36:56literally nothing else in the world that
5:36:58can do that for you besides potentially
5:36:59winning the lottery. Um and that's the
5:37:01harsh reality of literally any of these
5:37:04highinccome skill sets. Um it's it's you
5:37:08just have to put in a lot of work and
5:37:10you have to gain the skill first which
5:37:13takes a lot of time and then from there
5:37:15once you have the skill it's going to
5:37:16take time to build up your capital and
5:37:19then from there you're going to be able
5:37:20to reap the rewards of the skill set.
5:37:23Like for me bro like I just recently
5:37:26within my own trading was able to start
5:37:28reaping the rewards of the skill set of
5:37:31trading. Like if you look back to me
5:37:32like [ __ ] two or three years ago,
5:37:35like I was not trading with the size
5:37:37that I am now. I was not making nearly
5:37:39as much money from trading as I am now.
5:37:41Um, and that's just point blank period
5:37:43like how it works. You just like scale
5:37:45with time. And a lot of people like some
5:37:47of you guys may be first time viewers on
5:37:50here and you just think that I spawned
5:37:51in here like two months ago and
5:37:53magically like just had all of this
5:37:56money and that's not the case. Um, you
5:37:58know, it's it's a culmination of years
5:38:01of work to be able to get to this point.
5:38:04So, the reason why I'm saying that is
5:38:06because a lot of you guys think that
5:38:08you're just going to be in my position
5:38:11at the end of this year, and I would be
5:38:14lying to you if I told you that that was
5:38:16possible. Um, you're able to do what
5:38:18I've done with my life for sure. Um, but
5:38:21it's going to take a lot of time and
5:38:22it's going to take a lot of effort. Um,
5:38:25so that's really all psychology is.
5:38:27Psychology is just being like point
5:38:30blank period honest with yourself and
5:38:32saying, "Hey, I know that this is going
5:38:33to take a long time. I know I need to
5:38:35focus on the skill set of trading and I
5:38:37know that the only way for me to turn
5:38:38profitable is by sticking to the
5:38:40strategy that gives me a probability in
5:38:41the market." And then sticking to a risk
5:38:42management plan um that makes sure that
5:38:46when I'm using the strategy, I don't
5:38:48blow the account and I live to trade
5:38:50another day. And then from there, it's
5:38:52just going to be slow stacking. Um, and
5:38:54there's a bunch of companies and
5:38:56softwares that are able to help low
5:38:59income or low capital individuals to be
5:39:02able to scale a lot quicker, like funded
5:39:04accounts, like we talked about in
5:39:05yesterday's video or the day prior's
5:39:07video. Um, so again, like I'm not saying
5:39:10that it's impossible to scale up
5:39:12quickly. Um, I'm just saying it's going
5:39:14to take time. And that's all psychology
5:39:16is is being brutally honest with
5:39:19yourself, understanding that this is
5:39:20going to take time for me to learn the
5:39:22skill set of trading. And the only way
5:39:23for me to turn profitable with trading
5:39:25is by sticking to my strategy and
5:39:26sticking to a risk management plan. So
5:39:28with that being said, let's go over risk
5:39:30management again. Um risk manage dude
5:39:33like realistically strategy is like the
5:39:35most complicated
5:39:37um thing within trading. At the end of
5:39:39the day guys, trading is very simple. um
5:39:41you know like you find a strategy that
5:39:43gives you a probability within the
5:39:44market and then you find a risk
5:39:45management plan that is able to sustain
5:39:47that strategy within the win rate and
5:39:49within the risk-to-reward so that you
5:39:50can live to trade another day so that
5:39:52you're not blowing your account when you
5:39:53go on a little losing streak. Um and you
5:39:55just have to stick to those two things.
5:39:57Like when you put it like that trading
5:39:59is trading is pretty freaking simple.
5:40:01Um, so for me, for my risk management,
5:40:05like I used to do the whole thing of
5:40:07like calculate 1% of your balance and
5:40:10then I'm going to only risk 1% of my
5:40:13account balance per trade on this. And
5:40:16for each person, it's going to be
5:40:17different depending on what their risk
5:40:19tolerance is. But for me, I moved away
5:40:22from doing like, hey, I'm going to be
5:40:24risking um like only 1% of my account
5:40:29balance per trade and I just went to I'm
5:40:31going to risk this amount of contracts
5:40:33per trade. Um it just makes makes my
5:40:36life a lot easier. So I'm not thinking
5:40:37and having to pull up like a lot size
5:40:39calculator or contract size calculator.
5:40:42It just makes it a lot easier of just
5:40:44like, okay, whenever I press buy,
5:40:46whenever I press sell, it's going to be
5:40:47the same amount of contracts for NASDAQ
5:40:50and then I have the number of contracts
5:40:52on ES that I'm going to be using. Um,
5:40:54and it just makes my life a lot easier.
5:40:57And if you guys are trading on a live
5:40:58account, I would recommend you guys do
5:41:00the same. You want to find the number of
5:41:02contracts that is a safe amount for you
5:41:04to be risking um for your account
5:41:06balance. Okay? So, that doesn't mean
5:41:07you're risking 10% of your account
5:41:09balance per trade. That doesn't mean
5:41:10you're risking freaking 20% of your
5:41:13account balance. That doesn't mean that
5:41:14you're risking 5% of your account
5:41:15balance. Usually the sweet spot is
5:41:17anywhere between like 1 to 3%. If you
5:41:19can find a contract size that again,
5:41:22when we're looking at the charts, like
5:41:23you can literally just find, hey, what's
5:41:26my typical what's my typical stop-loss
5:41:29size? So on this trade that I took today
5:41:32that ended up being a big win, my
5:41:34stop-loss size on ES was around 16
5:41:37ticks, right? So, I can keep that in my
5:41:40mind. I'm like, "Awesome. On this trade,
5:41:42it was 16 ticks." And then I can look
5:41:44back to another short position that I
5:41:47maybe maybe had on the S&P 500. And on
5:41:49this trade, it was 34 ticks. And then on
5:41:52another trade, it was like 28 ticks. So,
5:41:54I can say, okay, on this trade, we had a
5:41:57relatively tight stop-loss. So, on this
5:42:00this on this position, you know, we're
5:42:02going to be risking whatever like three
5:42:06three contracts. So, this will be like
5:42:09the bare minimum that I'm going to lose
5:42:11because this is going to be the lowest
5:42:12amount. And then if I'm risking three
5:42:14contracts on this, you know, how much am
5:42:16I going to lose when it hits a 35 tick
5:42:18stop-loss? And then as long as I'm
5:42:19comfortable with both of those numbers,
5:42:21obviously for the smaller stop-loss,
5:42:23it's going to be a much more comfortable
5:42:24number. But as long as we're comfortable
5:42:26with like kind of the largest stop-loss
5:42:29um like stop-loss amount that we're
5:42:32going to be typically using on a
5:42:34trade-to-rade basis, then that's all
5:42:36that's all that matters, right? And
5:42:38again, like us going up to, you know, 35
5:42:42ticks, that could potentially be risking
5:42:44like three or 4% of the account, but I'm
5:42:47willing to do that because again, if I'm
5:42:49risking 3 to 4% of the account and then
5:42:51I'm only getting like a 1:1 risk to
5:42:54risk-to-reward ratio. You know, I'm
5:42:56still able to get a 3% gain on this. And
5:42:57then if I lose, doesn't really matter
5:42:59that much because whatever I get I get
5:43:01um stopped out, I lose 3%. But then on a
5:43:04trade like this where I have a much
5:43:06tighter stop-loss with probably a higher
5:43:08risk-to-reward, I'm not going to be
5:43:10risking as much as I am on the higher
5:43:12risk, lower risk-to-reward trades, but
5:43:15I'm going to be making more. Like on
5:43:16this trade, we hit full take profit. So
5:43:18this was a 1 to 4.81 risk-to-reward. So
5:43:21again, I'm risking less, but I'm in turn
5:43:24either making a little bit more on this
5:43:26trade or pretty much the exact same as a
5:43:291:1 risk-to-reward on a on a larger
5:43:31stop-loss. So, at the end of the day, it
5:43:33always ends up like evening out by using
5:43:35the same contract size. Now, I would
5:43:38like to preface one thing. If I do have
5:43:41um there's a couple times when I change
5:43:43the contract size. So, one time is if
5:43:46the stop-loss is like very drastically
5:43:49larger than usual, then I'm going to
5:43:51just cut the contract size in half. And
5:43:53then the other times are when we see
5:43:55fundamental data. So if we look and we
5:43:58see, hey, today there's there was PPI
5:44:01news data. So um the market is going to
5:44:05be a little bit more choppy and I'm not
5:44:07so sure about how the market's looking
5:44:09today. Then what am I going to do? I
5:44:11just say to myself, hey, I don't really
5:44:14like the way that the fundamentals are
5:44:15looking on the news. So what am I going
5:44:18to do? I'm just going to cut my contract
5:44:20size in half. Okay, that's really how I
5:44:23do it. It's uh it's made my life so much
5:44:26easier instead of like panicking having
5:44:28another browser open for uh the contract
5:44:31size calculator. It just makes my life a
5:44:32lot easier. Now, as for funded accounts,
5:44:35you're probably saying, "Okay, that's
5:44:36for live accounts. What What about for
5:44:37funded accounts?" So, funded accounts is
5:44:40going to be determined on a prop firm to
5:44:44prop firm basis. So, a company to basis
5:44:46and also dependent on what accounts you
5:44:49are trading on. So let's say you're
5:44:51trading on Alpha Futures, for example.
5:44:54Alpha Futures, they have um a little bit
5:44:57of a larger draw down for you to be
5:44:59trading in and then also a easier
5:45:02consistency rule to stick to. Versus
5:45:04Tradeify, they are going to have a
5:45:08tighter consistency rule and not as
5:45:10large of a draw down, but in turn, those
5:45:12accounts are going to be cheaper. Right?
5:45:14There's pros and cons for each prop
5:45:16firm, but what you guys need to do is
5:45:19you guys, again, it's unfortunate
5:45:21because I wish I could be like, "Oh,
5:45:23yeah, this is like the onestop shop and
5:45:25like the one way to use proper risk
5:45:28management on funded accounts, but
5:45:30unfortunately, every single prop firm is
5:45:32different. Some prop firms there's
5:45:34trailing draw down. Some prop firms
5:45:36there's trailing end of the day draw
5:45:37down. Some prop firms there's no
5:45:39trailing draw down. Some prop firms
5:45:41there's trailing equity draw down. Some
5:45:44prop firms, um, it's on a $150,000
5:45:48account, it's a 3,000 draw, $3,000 draw
5:45:51down. Some prop firms on a $150,000
5:45:54account, it's a $5,000 draw down. So,
5:45:56every single prop firm is going to be
5:45:59very, very different when it comes to
5:46:00using correct risk management. So,
5:46:02you're just going to have to look. I
5:46:03know this [ __ ] sucks, but you're
5:46:05literally just going to have to look
5:46:06yourself at the rules on what account
5:46:08you are trading on. And you're going to
5:46:10have to see for yourself, okay, how am I
5:46:12going to manage my risk with one the
5:46:14consistency rule that they have because
5:46:16that's very important, especially if
5:46:17they have consistency rule on the
5:46:19challenge and then also a consistency
5:46:21rule on the payouts. And then on top of
5:46:23that, I need to be looking, hey, is my
5:46:25draw down trailing with the equity of
5:46:28the account? is my draw down going to be
5:46:31trailing by the end of the day on the
5:46:33account is um how large is the amount of
5:46:37draw down that this company is giving
5:46:38me. So all of those things are things
5:46:41that you need to take note of and be
5:46:43very conscious of when you are trading
5:46:45on prop firms. And in turn everybody's
5:46:48risk management plan is going to be a
5:46:50little bit differently. Even even on top
5:46:52of that, your risk management plan is
5:46:54going to be a little bit different from
5:46:55the challenge account to the live
5:46:57account where you're going to be
5:46:58eligible for a payout. Most people what
5:47:00they do um is they'll get on the
5:47:02challenge account and they're they'll
5:47:04they will pretty much do the max amount
5:47:06of risk for them to be able to pass the
5:47:08account in as few trades as possible,
5:47:11right? Because they're just trying to
5:47:11get through the evaluation phase as
5:47:13quick as possible. And then once they
5:47:14get through the evaluation phase, once
5:47:16they're on the live account and they're
5:47:17eligible for a payout, what will they do
5:47:19then? then they'll scale back the risk
5:47:21because they're like, "Okay, this is the
5:47:23showtime. This is time for me to again,
5:47:25I don't want to blow this on one single
5:47:27trade versus the Eval, they're willing
5:47:29to potentially blow it on one single
5:47:30trade because they're like, hey, I'm
5:47:32just trying to pass this as quick as
5:47:33possible." Well, once you pass it,
5:47:35that's when it's like, "Hey, let's pull
5:47:36on the reins here. We want to
5:47:39potentially um we want we want to be
5:47:43trading a little bit less risky because
5:47:45we have the opportunity to get a payout
5:47:47now. So,
5:47:49all in all, that is risk management and
5:47:51psychology explained. Tomorrow, we're
5:47:52going to go over strategy and then that
5:47:54is going to be a wrap for the path to
5:47:56profitability. Hopefully, you guys have
5:47:58enjoyed the series so far. It's been fun
5:48:00for me to make and unfortunately
5:48:02tomorrow it's going to come to a close.
5:48:03So, now you guys are finally ready for
5:48:05me to reveal my full day trading
5:48:07strategy that I use on a daily basis to
5:48:10help me make money and give me high
5:48:11probability within these financial
5:48:13markets. Now, one thing that I ask you
5:48:14guys is once you guys fully understand
5:48:17the strategy, I don't want you guys to
5:48:18just jump in with [music] real money
5:48:21straight away. Again, I want you guys to
5:48:22use a demo account. I want you guys to
5:48:24practice this because it's one thing to
5:48:26sit here to watch and learn from the
5:48:29education, but it's another thing to go
5:48:31practice it. An analogy that I like to
5:48:33use is think about a basketball player.
5:48:36If a basketball player sits down and
5:48:38watches a 9-hour long [music] basketball
5:48:41training video that just teaches him how
5:48:43to do all the moves versus if we took
5:48:45somebody and told them to go play
5:48:48basketball and gave him a bunch of
5:48:49drills to do on the actual court for 9
5:48:51hours, who is probably going to get
5:48:53better? Probably the person that's
5:48:55actually doing the drills. Now, what
5:48:57happens if we had someone do both?
5:48:59that's when they're going to be very
5:49:00very good because they're going to learn
5:49:02how to do it correctly and then they're
5:49:04going to go and apply it. So that's
5:49:06exactly what you guys are going through
5:49:07right now. You guys are learning how to
5:49:09do it correctly but now you need to go
5:49:11and apply it. So before you guys jump in
5:49:14by buying a funded accounts and [music]
5:49:16you know trying to trade with your own
5:49:18money, there are tools that we have for
5:49:21a reason to help us understand these
5:49:23markets. And again, maybe some of you
5:49:25guys are still struggling while after
5:49:27learning the the strategy. That's
5:49:29completely fine. That's actually why I
5:49:31have a mentorship in place to help
5:49:33students like you guys. Again, I put out
5:49:35so much free content, but sometimes the
5:49:37free content isn't going to solve your
5:49:39specific personal questions because how
5:49:41am I supposed to make a individual
5:49:45YouTube video for your specific problems
5:49:47and be able to give you specific
5:49:50personal solutions to your problems?
5:49:51It's absolutely impossible. I can't
5:49:53spend all day going through YouTube
5:49:55comments and saying, "Oh yeah, this is
5:49:57how you do this, that, the third,
5:49:59because one, my time is super valuable."
5:50:01And two, then people would be asking me
5:50:02questions all day, 24/7 in the YouTube
5:50:05comments, and I would just get
5:50:06completely caught up with it. So that's
5:50:08why I want to give you guys the
5:50:09opportunity to join my one-on-one
5:50:11mentorship. There's going to be a link
5:50:12down in the description. And again,
5:50:13that's only if you guys are having
5:50:15trouble. And you guys can literally just
5:50:17[music] wait until after watching
5:50:19through this entire video, practicing
5:50:20yourself. And if you guys are still
5:50:22having trouble, then you guys can come
5:50:23back to me and say, "Hey, I'm having
5:50:25some issues and I want to see if I can
5:50:26become one of your students." And then
5:50:28we can see if you're going to be a good
5:50:29fit. But from here, we're going to jump
5:50:31into the strategy. I hope you guys are
5:50:33ready. All right, guys. Welcome to our
5:50:36very last episode of Path to
5:50:38Profitability, where we put everything
5:50:40together um and give you guys the
5:50:43strategy that you guys have been waiting
5:50:45your entire lives to learn. The strategy
5:50:47that's going to make you a million
5:50:49dollars. Just kidding. [gasps] It's not
5:50:52true. Okay, so before we get into the
5:50:56actual strategy, that's th this is what
5:50:59we need to preface beforehand. Just
5:51:01because you know the step by step of how
5:51:05to enter a trade, does that mean you're
5:51:07instantly going to be able to make money
5:51:08from trading? No.
5:51:10Second thing just or sorry the second
5:51:13thing is that even though you have the
5:51:15strategy we need to have risk management
5:51:17and we need to have psychology in check
5:51:19in order to be a profitable trader
5:51:21because again we need all three skill
5:51:22sets in order to be profitable as a
5:51:25full-time day trader. We need strategy,
5:51:27we need risk management and we need good
5:51:29psychology.
5:51:31Okay, without all three of those we are
5:51:33unable to be a full-time profitable
5:51:36trader. Now, another thing that I want
5:51:39to preface, and this is something that
5:51:42I'm going to do a little bit differently
5:51:44than I have in the past. Most of the
5:51:47time when I do these strategy videos,
5:51:49I'm like, "This is step one, step two,
5:51:51step three, step four, and then I'll go
5:51:54ahead and I'll post like a trade recap."
5:51:56And, you know, granted that those other
5:51:59strategy videos are pretty dated and
5:52:01whatever, like my strategies changed
5:52:03since then. Um people will be like,
5:52:05"Hey, well, you didn't wait for this to
5:52:08happen in your strategy or, hey, you
5:52:11skipped over this step." And that's the
5:52:13problem um with when mentors get on here
5:52:17and teach you guys their day trading
5:52:19strategy that helps them make money. We
5:52:22are trying to make it in like the
5:52:24easiest and most digestible way
5:52:26possible.
5:52:27In reality, a lot of strategy and a lot
5:52:30of trading comes down to like just
5:52:34overall like market experience. So there
5:52:37could be some times like for the most
5:52:40part I'm following the same steps every
5:52:42single time, but there might be one day
5:52:44where I instead of scaling down to the
5:52:475m minute, I scale down to the 1 minute
5:52:48and I try and take a lower time frame
5:52:50trade. or instead of waiting for this
5:52:54confirmation, I wait for another
5:52:56confirmation. And that's like more of
5:52:59the discretionary side of this because
5:53:02in reality, if we wanted to just make
5:53:06some sort of like trading bot that
5:53:07automated our strategy that like and if
5:53:11that strategy actually gave us like 100%
5:53:15profitable results um over a long period
5:53:17of time, then awesome. Everybody would
5:53:19be able to get rich. And that's kind of
5:53:21the last thing that I wanted to talk
5:53:22about before getting into this. Just
5:53:24because you have this strategy doesn't
5:53:26mean that you know you're just instantly
5:53:29going to be a profitable trader. Trading
5:53:31is a lot more than that. It comes with a
5:53:32lot of market experience. It comes with
5:53:34watching the charts for hours and hours
5:53:36and hours over and over and over from
5:53:39market open to market open. And there's
5:53:41a lot of variables that go into being
5:53:43able to predict when price price action
5:53:46is good. being able to predict um or you
5:53:50know like decide whether to size up in
5:53:52your risk management, whether to size
5:53:53down and all of these things are factors
5:53:55that play into whether or not you
5:53:56actually end up being a profitable
5:53:58trader or not. And really the only thing
5:54:01that is going to be able to give you
5:54:02that skill of discretion and that skill
5:54:05of market experience is quite literally
5:54:08putting in the time and effort required
5:54:10to be able to earn that skill, which is
5:54:13just looking at the charts and getting
5:54:15repetitions in. Cuz again, this is like
5:54:18I' I relate these series and um like
5:54:22these YouTube videos to like a let's say
5:54:25LeBron James made a basketball
5:54:29pre-training guide, right? And he gives
5:54:32you every single tip and trick required
5:54:35that he did when he was growing up to be
5:54:38able to become the best basketball
5:54:39player in the world.
5:54:42Just because he gave you guys that
5:54:43blueprint, does that mean you're able to
5:54:46sit down, watch those videos, not take
5:54:49any action, and then end up becoming
5:54:51like LeBron James? No. What needs to
5:54:53happen after you watch the videos? Well,
5:54:55you need to actually go out and do the
5:54:57exact same amount of work and put in the
5:55:00exact same amount of effort to even one
5:55:02have the possibility of getting close to
5:55:05him in terms of skill. And then there's
5:55:06a whole bunch of other stuff that's
5:55:08involved like whatever genetics and just
5:55:11real like basketball IQ. And it's the
5:55:13same thing with trading, right? So like
5:55:15I can get on here and I can explain my
5:55:18strategy and I can tell you, hey, you
5:55:19need to do this, you need to do this,
5:55:21you need to spend this amount of hours
5:55:22doing this. You need to make sure that
5:55:24you understand this concept, this con
5:55:26concept, this concept, and then you need
5:55:28to put a [ __ ] ton of time in into the
5:55:29charts. And that's how you're going to
5:55:31be able to make money from trading long
5:55:32term. I I've already done that. Um, and
5:55:36I continue to put in hours on the
5:55:38charts, but for you guys, it's like just
5:55:41watching these YouTube videos and just
5:55:43digesting the content is not going to
5:55:47make you a profitable trader. It's one
5:55:50step. It brings you It gives you the
5:55:52knowledge required, but once you get the
5:55:55knowledge, you need to act on the
5:55:56knowledge that you got and then you
5:55:58start making more mistakes and then you
5:56:00learn from those mistakes. So getting
5:56:02the getting the correct information is
5:56:04one thing, but then going from, okay,
5:56:07now I have the information to actually
5:56:08taking action on the information that
5:56:10was given to you, that's a whole other
5:56:12thing. And that's where most people end
5:56:14up [ __ ] up. And that's where most
5:56:15people end up going wrong is like they
5:56:18get the information and then they get it
5:56:21in like this edertainment format where
5:56:23they're like, "Oh, life is so great. I
5:56:25just learned the best strategy that's
5:56:27going to turn me profitable. So now I
5:56:29don't have to do any work and I don't
5:56:30have to practice this. I don't have to
5:56:32back test. I don't have to journal. I
5:56:34don't have to do anything. Um and I'm
5:56:36just going to take one trade a day every
5:56:40single day on market open um and hope
5:56:43and pray for the best. And it's like
5:56:45you're going to suck at trading for your
5:56:47entire life. Uh if you do that, you need
5:56:50to put in the hours required to be able
5:56:52to drill out the strategy, to be able to
5:56:54understand the strategy correctly. Um
5:56:57and to get yourself in the right headsp
5:57:00space to genuinely just like be good at
5:57:03trading, um you need to put the hours
5:57:05in. Uh there's a there's a rule. It's
5:57:08like the 10,000 hour rule. If you want
5:57:10to be a master of something, you have to
5:57:11put 10,000 hours into it. Um you know,
5:57:15and the more the better. Like I'm like
5:57:18if you think about Kobe Bryant like he
5:57:21was rest in peace um he was one of like
5:57:24the best to show and prove that rule. Um
5:57:28he put in probably the most amount of
5:57:31work and just had the craziest work
5:57:32ethic out of all of like the great
5:57:34basketball players ever and it showed
5:57:37right. He showed up, put in well over
5:57:4110,000 hours worth of work and became a
5:57:42master of his craft. It's the exact same
5:57:45thing with trading. And it's the exact
5:57:46same thing with anything that you're
5:57:47trying to pursue, right? You can't just
5:57:50say, "Hey, I'm going to sit here and
5:57:51watch a couple YouTube videos because
5:57:53guess what? This YouTube video, you
5:57:54know, by the time the year is up, we'll
5:57:56probably have well over a 100,000
5:57:59views." But you really think that
5:58:01100,000 people are going to watch this
5:58:03video and then proceed to put in the
5:58:0410,000 hours that's required to end up
5:58:07becoming a profitable trader? Probably
5:58:09not.
5:58:10So, if it was easy as just sitting here
5:58:12and watching a YouTube video and then
5:58:14boom, we're all millionaires. I wish
5:58:17that was the case. But it's not the
5:58:19case. I need to be open and honest with
5:58:21you about how this [ __ ] works. And
5:58:24that's the truth. It's one thing to get
5:58:26the information. That's this that's what
5:58:27this video is here for, for you to get
5:58:29the information required to be able to
5:58:31build a good strategy, to be able to
5:58:33build maybe some sort of discretionary
5:58:35trading plan. But then from there it's
5:58:37up to you to actually trade and make the
5:58:39mistakes, learn from those mistakes,
5:58:41grow from the mistakes, make mistakes,
5:58:43learn from those lessons. Ideally, never
5:58:45make them again. And then that's how we
5:58:46become a better trader. So for me, I
5:58:49learned this strategy. I taught myself
5:58:52this strategy based off these
5:58:53confluences that I've learned from a
5:58:55bunch of other people in the space and
5:58:57then kind of made this into my own
5:58:59strategy that has worked for me and has
5:59:01made me a profitable trader. Um, and I
5:59:04put in the hours required to be able to
5:59:06test this and then to be able to
5:59:07actually make money from this. Uh, you
5:59:10guys need to do the exact same. So
5:59:12whether you guys learn the confluences
5:59:13and then maybe want to twist this in a
5:59:15little bit of different way. Um, and
5:59:16then that's the last thing. I'm not
5:59:17going to give you like I was saying like
5:59:19a step-by-step, hey, this this this, I'm
5:59:21just going to give you the overall
5:59:23ideiations of how I'm going to be
5:59:25looking at trades. So, what I'm looking
5:59:27at when I'm looking for my daily bias,
5:59:29what I'm looking at for when I'm looking
5:59:31to enter and how I'm using the certain
5:59:33confluences that I've taught you guys
5:59:34throughout this entire series to be able
5:59:37to make those predictions and to be able
5:59:39to make um highly probable decisions
5:59:42within the market on a daily basis
5:59:43because that's our goal with trading. Um
5:59:46because again, from what I found in the
5:59:48past is like you give people like, hey,
5:59:49step one, step two, step three, step
5:59:51four. Then I do a trade recap and then
5:59:53they're like, hey, you skipped this
5:59:55step. is this a new strategy? And it's
5:59:57like
5:59:59like no, that was just like literally 5
6:00:02years plus of trading experience telling
6:00:05me, hey, I've seen this [ __ ] before. We
6:00:07should probably scale down to the lower
6:00:08time frame and take a shorter time frame
6:00:10trade instead of waiting for a higher
6:00:11time frame confirmation because there's
6:00:14a bunch of draws and liquidity that are
6:00:15about to get hit. So, I know that
6:00:16there's not going to be a high time
6:00:18frame higher time frame confirmation.
6:00:19So, I'm going to scale down so I can at
6:00:20least get into this trade so I can make
6:00:22some profit, right? Like that that
6:00:25thought process only comes from being
6:00:27able to that thought process will only
6:00:30be built by putting the time required by
6:00:33seeing market open so many times and by
6:00:35seeing these candles print for years and
6:00:38years and years for hours and hours and
6:00:40hours for days and days and days. Um
6:00:43that's literally the only way that
6:00:44you're able to be able to make
6:00:45adjustments like that. And then at the
6:00:48end of the day when you really get down
6:00:50to think about it, it's like, okay, so
6:00:53what was the trade taken off of the
6:00:56strategy or was it taken off of
6:00:57discretion? And that's the big kicker
6:00:59with all of this. And I don't want to
6:01:01ramble, but I just really want you guys
6:01:03to understand this where it's like what
6:01:06I'm going to teach you today is the
6:01:07ideation and the thought process of how
6:01:10my strategy is constructed. Okay? We go
6:01:13from orders being filled to change in
6:01:17order flow to continuation of the new
6:01:19trend and I'm looking to enter and I'm
6:01:22looking to target other draws in
6:01:24liquidity or internal draws in liquidity
6:01:27because in my head it's orders have been
6:01:28filled or orders have potential to get
6:01:31filled. How do we know orders have been
6:01:32filled? We see a change in order flow or
6:01:34a change in market structure. And then
6:01:36how do we know that change in market
6:01:37structure is going to hold? we see
6:01:40continuation of that market structure
6:01:42and then where am I going to target
6:01:44where those orders that were filled up
6:01:46there or down here can be um exited
6:01:49right so that's going to be at draws and
6:01:51liquidity or imbalanced price action so
6:01:54that's how I think about my strategy
6:01:56when creating it and I'll show you guys
6:01:58or when I was creating it and I'll show
6:02:00you guys a couple examples on the chart
6:02:02um and I'll write down like the step by
6:02:05step but you guys have to know and
6:02:08understand. And this is why I'm not
6:02:10going to be like, "Hey, you look at this
6:02:12time frame first and then you look down
6:02:14on this time frame and then you look on
6:02:16this time frame." Because
6:02:19like the second that you don't do that
6:02:22exact step by step, the comment section
6:02:24is going berserk saying you didn't
6:02:26follow your strategy. And it's like,
6:02:29shut up, bro. like I know what my
6:02:31strategy is and I changed it so that I
6:02:34would I was able to be able to take
6:02:35advantage of this price action that was
6:02:37in my favor. It's like I'm making sound
6:02:40decisions based off of what I've seen
6:02:42the market do for [ __ ] seven years
6:02:44now and you're like talking about you
6:02:47changed your strategy and it just drives
6:02:50me nuts. So, we're not going to do the
6:02:52step-by-step strategy look at this time
6:02:53frame and wait for this and then you
6:02:55have to do this right after this. It's
6:02:57going to be this is how I've built my
6:02:59strategy and this is how I think about
6:03:02the markets and how the markets should
6:03:04be moving on a daily basis and this is
6:03:06how I look for entries. Okay? And you
6:03:09guys will be able to get a pretty good
6:03:11gist of what I'm looking for on a daily
6:03:14basis and how I'm able to construct this
6:03:16and how I'm able to construct my
6:03:18thoughts when I'm looking at the
6:03:19markets. I'm not just going to give you
6:03:21like step one, step two, step three
6:03:23because one, people [ __ ] that up all the
6:03:25time. And then two, they they they leave
6:03:28no room for any discretionary trading.
6:03:29And that's what I want to leave room for
6:03:31you guys to be able to do is to be able
6:03:33to let your mind like flow and let your
6:03:35mind actually be able to see the
6:03:37candlesticks get printed and actually
6:03:38force yourselves to put in the time
6:03:40required on the chart to be able to
6:03:43understand why price is moving the way
6:03:45that it is. Why price didn't want to go
6:03:48hit this draw on liquidity compared to
6:03:50this one. All of those things are very
6:03:52important things for you guys to know.
6:03:53And I feel like as your mentor, I should
6:03:56purposely
6:03:58omit little pieces from this strategy
6:04:01video so that you go out and learn them
6:04:04yourself. And it's not like that I'm
6:04:06leaving the [ __ ] out like um because
6:04:10it's so valuable and it's like some
6:04:12secret sauce. It's like no, I'm not
6:04:15going to tell you to do certain things
6:04:17because there's some things that
6:04:18shouldn't have very strict constraints
6:04:20on it. like, hey, we can only enter when
6:04:24this happens, then this happens. Like,
6:04:26no, I want you guys to be more of like a
6:04:28free little pony prancing through the
6:04:30rain. And just having all these
6:04:33confluences in your arsenal, like a
6:04:35toolbox. So, every single day there's a
6:04:37different set of blueprints that are set
6:04:39down. You have all the tools and you
6:04:41have all the materials to be able to
6:04:42build what the blueprint is, but every
6:04:44single time you're probably not going to
6:04:46be using the same tools because the
6:04:47blueprints are different. um the tools
6:04:49and materials are the same, but you
6:04:51might not need a wrench to be able to
6:04:52build whatever the blueprints say on
6:04:54this day. And then the following day,
6:04:56you know, you might need the wrench, but
6:04:58you might not need the hammer, right?
6:04:59That's how I want you guys to think
6:05:00about how we have our confluences, how
6:05:02we build out out our daily biases when
6:05:04we're looking at the market, because the
6:05:05market's a different market every single
6:05:07day. That's one of the awesome things
6:05:08about trading. Um but that's also one of
6:05:12the difficult things about trading is we
6:05:14have to constantly be adapting to the
6:05:15new things that the market's giving us.
6:05:17So by unrestraining and unrestricting
6:05:20ourselves to hey you have to follow this
6:05:23super super [ __ ] strictly it allows
6:05:25us to adapt to the market. So here we
6:05:28are on the S&P 500 S&P 500 500 500.
6:05:37So
6:05:40let's imagine that we are right here.
6:05:43Okay, market is literally within the
6:05:47next millisecond going to open. Okay,
6:05:50this 30 minute candle just closed, which
6:05:52means market is open. Okay, we obviously
6:05:56can't see the market open candle
6:05:58forming, but market is now open. What am
6:06:01I going to be looking at? Well, the
6:06:02first thing that I'm going to be looking
6:06:04at is where are where are our where are
6:06:08our draws on liquidity for the day?
6:06:11because again,
6:06:13what is my thought process? And I'm kind
6:06:15of going to break this down while we're
6:06:17going through this trade that I took on
6:06:19Friday so that you guys can get a good
6:06:21gist of what I'm looking for for trades,
6:06:24okay? And how I break this down. So, the
6:06:27first thing that I'm looking for is
6:06:30have we swept out liquidity yet? Where
6:06:34are our draws on liquidity?
6:06:38and what point are we at within current
6:06:42market structure? Okay,
6:06:47so
6:06:50on the S&P 500
6:06:54this candle it doesn't look it doesn't
6:06:57look like this. It's just formed like
6:06:58this because the trade replay. But
6:07:05on the high time frames, we are
6:07:08continuing this 4hour bullish market
6:07:11structure. Okay? So we come up, we fill
6:07:15this gap, we see extensions out of it.
6:07:17However, we form a down candle right
6:07:19here. Same thing here on NASDAQ.
6:07:25However, we actually disrespect this
6:07:29gap. However, there's one gap underneath
6:07:30it. So, it's not a full-fledged
6:07:32disrespect of the bullish order flow
6:07:34that we're in.
6:07:36We are actually just filling equilibrium
6:07:38from this low up to this high. Okay. So,
6:07:40we filled equilibrium. We respected it.
6:07:42We moved up.
6:07:44So, at this point in time, I'm seeing on
6:07:47the high time frame. We're in Bullish.
6:07:50We're in bullish bullish order flow.
6:07:54Okay. We inverse this top gap right
6:07:56here, right? So, we move down. We
6:08:00inverse this top gap and now we're
6:08:02respecting this for this 4hour
6:08:05equilibrium. And on the S&P 500, same
6:08:08situation. We inverse this top gap. So,
6:08:10previously we were in a downtrend, but
6:08:12then we inverse this top gap. We also
6:08:14broke structure to the upside. So, boom.
6:08:16We know that, hey, we're in an uptrend
6:08:18now. And how do we confirm that we're in
6:08:20an uptrend? We come down, we fill this
6:08:22gap, and then we see legs up out of it.
6:08:24So, awesome. That's my first thought
6:08:26process. That's the first thing that I'm
6:08:29thinking when I see all of that go down.
6:08:33So I say cool. But that's that's before
6:08:37way way way way before market open.
6:08:40From there we're going to be looking at
6:08:42Asia session. What else can we do? We
6:08:44can look at previous day highs which are
6:08:46right here.
6:08:48And then we have previous day lows I
6:08:52believe. Nope. These were previous day
6:08:55lows all the way down here.
6:08:58Okay. So, we have previous day low
6:09:02right here. Previous day high. Sorry.
6:09:06Right here.
6:09:10What day is this? Thursday. Sorry. I'm
6:09:13getting all mixed up. There it is. Okay.
6:09:17We previous day high, previous day low.
6:09:19Boom.
6:09:21What else can we look at? Well, we can
6:09:24identify.
6:09:26Boom. We have Asia session low from this
6:09:28new day that we opened. We have London
6:09:32session low right here. And then we
6:09:35have, let's see, right here. This is
6:09:37London session high. Awesome. So, right
6:09:42now we're in bullish market structure on
6:09:44the 4 hour. We came down. We filled this
6:09:47continuation confluence. We're seeing
6:09:48legs up. Me personally coming into this
6:09:51day, I'm pretty bullish. Okay, why?
6:09:54Because we have draws and liquidity to
6:09:56the upside, right? We have London
6:09:58session high right here. We've got some
6:10:00hourly high stacked up right here. We
6:10:02also have previous day high all the way
6:10:04up here.
6:10:05Okay, this is previous day low.
6:10:09This is Asia session low.
6:10:13And this is London session low.
6:10:16So,
6:10:18what did I just do? What's the first
6:10:20step of finding my strategy? Well, it's
6:10:23daily bias. And we had a daily bias
6:10:25video like 2 days ago. Okay. So, I'm
6:10:28looking to one, identify the high time
6:10:30frame trend. Identify at what point in
6:10:33time are we in in the high time frame
6:10:36trend? So, at this point in time, what
6:10:37what are we in? We were filling an
6:10:39imbalance and we were seeing extensions
6:10:41out of it, right? So, for me, I'm like,
6:10:44"Okay, cool. We're filling imbalances.
6:10:46We're probably going to want to seek out
6:10:49some form of external draw on liquidity
6:10:51because that's how trends move, right?
6:10:53If we're in an uptrend, which right now
6:10:55we are, we inverse this gap, we come
6:10:58down, we respect the 4hour gap, and then
6:11:01we start seeing legs out of it. Awesome.
6:11:03Our targets should be up here." Right?
6:11:05So, the first thing that I'm doing is
6:11:07doing that, identifying what order flow
6:11:09are we in on the 4 hour and on the 1
6:11:11hour. Okay. The next thing that I'm
6:11:15going to want to do, sorry, disregard
6:11:16that massive candle. That hasn't
6:11:18happened yet. Um, the next thing that
6:11:20I'm going to want to do is identify all
6:11:22of our draws on liquidity for the day.
6:11:26So, what did I just do? I went in and I
6:11:28said, "Okay, we have previous day high
6:11:30right here. We have previous day low
6:11:32down here. We have a session low right
6:11:35here which is Asia session. We have
6:11:37session high right here which is London
6:11:39session high. We have a session low
6:11:40right here which is London session low.
6:11:42Um Asia session high had already been
6:11:44pushed past London session highs and
6:11:47there was no reaction off of it. So in
6:11:49turn that draw liquidity is pretty
6:11:51useless for us. Same thing here on the
6:11:54S&P 500. We have London session high. We
6:11:58have previous day high. We have Asia
6:12:00session low. We have London session low.
6:12:02And then we can even mark out these
6:12:04hourly highs right here that look pretty
6:12:05good. So now we have identified the high
6:12:09time frame trend that we're in and we
6:12:10identified the draws and liquidity. So
6:12:13me personally, what am I going to want
6:12:15to see? I especially right now because
6:12:18we're in an uptrend, I'm going to want
6:12:20to see candles out of and reacting
6:12:24bullishly. Again, disregard this hourly
6:12:26candle right now. Let's imagine as if we
6:12:29can't even see this, but I want to see
6:12:31price start reversing up because right
6:12:33now on the S&P 500, we're in a
6:12:36downtrend. And on NASDAQ, at this point
6:12:38in time, we're actually in an uptrend.
6:12:40This candle should not be shouldn't look
6:12:43like this right now. But at this point
6:12:45in time, we are in an uptrend. And
6:12:47actually, even better for us is we are
6:12:49sweeping out liquidity to the downside
6:12:51on the 1 hour. So for me, I'm thinking,
6:12:53hey, if we can get confluences to the
6:12:56upside, that to me means that, hey,
6:12:59we're going to want to come up and take
6:13:00out all of these very solid draws in
6:13:02liquidity, right? We got London high, we
6:13:05got hourly high, hourly high, previous
6:13:06day high. All of these highs up here
6:13:08look great, right? And we just recently
6:13:11saw that price came down and swept out
6:13:13these lows, and now we're reversing. And
6:13:15awesome. We already hit one of our draws
6:13:17on liquidity, but market is just
6:13:18opening, so we weren't able to take a
6:13:20trade on that. maybe we can take a trade
6:13:21to be able to target some of these
6:13:23highs. So the first two things is I
6:13:27establish my bias. Okay, so my bias
6:13:29today is bullish. I'm looking at all of
6:13:31these highs here. All right, the second
6:13:34thing that I do is identify the key
6:13:36draws and liquidity. Now again, what are
6:13:38draws and liquidity? Areas where price
6:13:41has the potential to fill orders, okay,
6:13:44to cause reversals, right?
6:13:51So, with that in mind,
6:13:54I'm looking at these draws in liquidity
6:13:56as one of two things, okay? Entries and
6:14:00targets.
6:14:01Right now, we just pushed up above this
6:14:07Friday's high
6:14:10on the S&P 500. We're or sorry, London
6:14:13session high on on the S&P 500. We're
6:14:15significantly underneath the this high
6:14:17right now.
6:14:19What is a concept that we learned when
6:14:21we are pushing above a high on one of
6:14:23the indexes and then below a high on
6:14:26another one of the indexes? An SMT
6:14:29divergence, specifically a bearish S&
6:14:31divergence. So, uh-oh. Even though we
6:14:36are in bullish market structure on the
6:14:384hour time frame and we're respecting
6:14:40bullish market structure [clears throat]
6:14:41and I probably want these highs, what do
6:14:44I have to consider? I have to consider
6:14:46that, hey, we might be potentially
6:14:49sweeping out these orders right here,
6:14:53missing these orders right here, and
6:14:55forming an SMT divergence from this high
6:14:57down to this high, from this high up to
6:14:59this high. And what is the S&P 500
6:15:03telling us about NASDAQ that hey, we
6:15:06probably want to go down and we actually
6:15:08might want to take out these London
6:15:09lows, these Asia session lows, maybe
6:15:12even the previous day lows all the way
6:15:14down here, right?
6:15:19So, with that in mind, let's play the
6:15:22market out a little bit and let's see
6:15:25where we end up going.
6:15:28All right, so we'll play this
6:15:31Boom. This candlestick stick forms. Does
6:15:34this give us any real overall sense of
6:15:38where the market's going to go or what
6:15:39decision the market has made?
6:15:42Not really, right? This is a pretty
6:15:43indecisive candlestick. The S&P 500, we
6:15:47are still remaining underneath these
6:15:49high time frame highs. So, for me, I see
6:15:52this and I see that we're underneath
6:15:54these high time frame highs. I'm
6:15:56thinking, hey man, we're still above
6:15:57these highs on NASDAQ and we're still
6:15:59underneath these highs. My bias is still
6:16:01the same. I would potentially want some
6:16:04sort of high time frame entry to to take
6:16:08to take buy positions, but I have to be
6:16:11conscious of a potential bearish SMT.
6:16:14So, from there, let's play it a little
6:16:16bit more.
6:16:18Boom. Okay. So from here we end up
6:16:21getting boom
6:16:24another down candle. So now I'm thinking
6:16:27okay we've we we've made an extension
6:16:30up. We were unable to sweep out this
6:16:33high. We made extension up. We swept out
6:16:36this high. So the S&P 500 is the leading
6:16:38index to the downside right now.
6:16:41However, we are still in bullish order
6:16:43flow to to the upside on the fivem
6:16:46minute. Right. So, as well as taking
6:16:49into account the high time frame, high
6:16:51time frame order flow, which at this
6:16:53point in time is bullish,
6:16:55we also want to take into account the
6:16:57low time frame order flow. So, I'm
6:16:59looking at the 5m minute and I'm saying
6:17:01this is bullish. We haven't broken
6:17:03structure to the downside yet. For me,
6:17:06even though we're making a bearish SMT
6:17:08divergence,
6:17:10I want to see a change in order flow.
6:17:12Okay? I want to see a change in
6:17:14structure because it's one thing for us
6:17:16to again sweep out have the orders the
6:17:20potential to get orders filled, but just
6:17:22because we have two legs down doesn't
6:17:24mean that all of these sell orders were
6:17:26filled for us to reverse this, right? It
6:17:28just means that there's potential
6:17:29because we came up came up here.
6:17:33How do we know that orders are getting
6:17:35going got filled from those highs when
6:17:38we break structure?
6:17:40So, right now, we could just be
6:17:41retracing to move higher to target these
6:17:44highs, right? So, we need to continue to
6:17:46be patient. So, let's play one more
6:17:48candle.
6:17:50Boom.
6:17:52Now, do we think orders were filled?
6:17:55Probably. Right. So, I see a massive
6:17:59down candle and we break structure to
6:18:02the downside on NASDAQ
6:18:06and on the S&P 500.
6:18:10Now, what is confirmed?
6:18:12NASDAQ swept out a draw in liquidity. We
6:18:16have a confirmed bearish SMT divergence.
6:18:20NASDAQ for sure filled orders up here.
6:18:23How do we know that orders were filled?
6:18:24Because we changed the current order
6:18:26flow of the low time frame.
6:18:29From there, what am I looking for? I'm
6:18:31looking for a continuation
6:18:33of the low time frame trend
6:18:36in order to prove to me that hey, we
6:18:40just broke this and we're starting a new
6:18:42trend, you know, to the downside. I want
6:18:44to see that new trend continue to the
6:18:47downside. So again, the change in order
6:18:52flow or the change in structure could
6:18:54have been seen in two ways. Either via
6:18:56breakup structure or an inverse for
6:18:58value gap. In this case, we didn't have
6:19:00a fair value gap to inverse within this
6:19:02leg up. So, we had to wait for a break
6:19:04of structure and luckily the market gave
6:19:06it to us. Same thing here on the NASDAQ.
6:19:08We didn't have a fair value gap that we
6:19:09could inverse. So, what did we wait for?
6:19:11A break of structure.
6:19:14Now, if we're waiting for a continuation
6:19:16of the current trend that we're in, what
6:19:19do we have to wait for?
6:19:22We have to wait.
6:19:24we have to wait for one of our
6:19:25continuation confluences which is either
6:19:28a fair value gap getting filled or
6:19:30equilibrium. So right now we don't
6:19:32really have the opportunity for either
6:19:34of those because we don't have a bearish
6:19:36for value gap that's formed yet and we
6:19:38don't even have an up candle to draw
6:19:40equilibrium from this high down to the
6:19:42low of the up candle. So let's see. And
6:19:45again I'm going to want to now be
6:19:47focusing
6:19:49on this trade specifically on the S&P
6:19:52500. Why? because it's the leading
6:19:55index,
6:19:57okay? And it's leading to the downside,
6:19:59meaning this one didn't this index
6:20:01didn't have enough buy orders to be able
6:20:02to push above this high.
6:20:05So, what is it signaling to me? That the
6:20:07S&P 500 is the more bearish index. So,
6:20:09if I'm looking to take a short position,
6:20:13I'm going to want to take a trade on the
6:20:15index that doesn't even have enough buy
6:20:17positions to be able to push up above
6:20:18these highs, that already has enough
6:20:20sell orders to be able to push down
6:20:22without needing to take out these highs.
6:20:24Right? So, I'm going to want to focus my
6:20:26my targets on the S&P 500. [snorts]
6:20:30Okay. Price comes down, breaks structure
6:20:32right here. From there, let's play it.
6:20:37Awesome. Boom. big candlestick to the
6:20:40upside.
6:20:43So now what am I looking at?
6:20:46I'm saying, okay, from this high down to
6:20:48this low, where we're at, where are we
6:20:50at? We just filled equilibrium.
6:20:54Awesome. Once we fill equilibrium,
6:20:58we can wait for one of two things. Me
6:21:00personally, I like to scale down to the
6:21:02lower time frames so that I can get
6:21:04ahead of this. But once we fill the
6:21:08confluence, what's the last thing that
6:21:10we need in order to be able to enter?
6:21:12Well, we just need confirmation that not
6:21:14only was the confluence filled, but that
6:21:17we are actually going to move down out
6:21:19of it, right? Cuz it's one thing just
6:21:21for price to push into equilibrium, but
6:21:24price easily could have just gone all
6:21:26the way up, right? So, if we just press
6:21:27sell, right, when equilibrium gets
6:21:29pushed into, then why did we even draw
6:21:31out equilibrium in the first place? It's
6:21:33pretty much useless. Why do we have
6:21:35equilibrium there? It's to be able to
6:21:37see price come into it and then respect
6:21:40it and then that's when we're looking to
6:21:42enter.
6:21:44Okay, continue. And same thing with a
6:21:47fair value gap. We didn't make a fair
6:21:48value gap on this, but if we have a fair
6:21:50value gap, do I enter the trade right
6:21:53when price pushes into the fair value
6:21:54gap? Well, no. That would be stupid
6:21:57because if the candle is still forming
6:21:59and right when we get into the gap, what
6:22:01happens if price just keeps going higher
6:22:04and higher? You're immediately going to
6:22:05get stopped out. And that all of that
6:22:08could have been avoided by just waiting
6:22:10for price to fill the confluence that
6:22:13you want and then wait for confirmation
6:22:15down and out of it. So you can wait for
6:22:18one of two options here. You can either
6:22:20wait for just the five minute the
6:22:22following fiveminute candle to close
6:22:24bearish to prove like hey we filled this
6:22:27continuation confluence and the market
6:22:29is showing that we want to move down off
6:22:30of this or you can do what I do and what
6:22:33the majority of other people do is you
6:22:35can scale down to the one minute time
6:22:37frame and you can look and see okay so
6:22:41we came down and we came up we filled
6:22:45the continuation confluence whether it
6:22:47was equilibrium or a fair value gap
6:22:50And then typically on these retraces up
6:22:53on these fiveminute retraces we are
6:22:54going to break one minute structure back
6:22:56to the upside either via an inverse for
6:22:58value gap or through a break of
6:23:00structure. So at this point in time on
6:23:04this candlestick we are bullish.
6:23:08We're bullish going into this
6:23:11continuation confluence which on the
6:23:13higher time frame is going to be bearish
6:23:15for us. And we actually want price to
6:23:18break structure or get an inverse for
6:23:20value gap while pushing into these
6:23:21confluences because it's going to give
6:23:23us our entry confluence.
6:23:26What is my entry confluence? Well, it's
6:23:29simply just waiting for price to push
6:23:31into the 5minute continuation confluence
6:23:34and then on the 1 minute we break
6:23:36structure to the upside and then we just
6:23:38simply wait for a break back down or
6:23:41wait for a change in order flow back
6:23:42down because that what is that proving
6:23:45on the market? It's proving that price
6:23:48came into a continuation confluence
6:23:52and we when we push into the
6:23:55continuation confluence that is supposed
6:23:57to be respected of this new trend that
6:24:01we're forming on the low time frame, we
6:24:04get a break of structure or an inverse
6:24:06for value gap. That's proving to me that
6:24:08hey, we filled all of the orders that we
6:24:12needed to up here and we are actually
6:24:14going to continue this trend down. So in
6:24:16this case, I entered this trade. You
6:24:19guys can watch the trade recap. It was
6:24:21literally yesterday on Friday. I entered
6:24:24this trade once we inverse this gap
6:24:26right here.
6:24:29And I put my stop loss above these
6:24:31highs.
6:24:34Okay? And then from there, I targeted
6:24:36all of my draws and liquidity. So we had
6:24:38London session lows. We had I believe
6:24:40these were the Asia session lows. We had
6:24:43these high time frame hourly lows all
6:24:44the way down over here. Okay, we had
6:24:47really good draws and liquidity on the
6:24:50high time frame.
6:24:52All right. Now, again, let me just walk
6:24:55you through the entire thought process
6:24:57of being able to take this trade.
6:25:00I needed this is the stepbystep TJR
6:25:04strategy, how he thinks about entering
6:25:06trades.
6:25:08I need the potential for orders to be
6:25:10filled.
6:25:12Okay, how do we see the potential of
6:25:14orders to be filled? By us pushing above
6:25:16a high, a significant high, or below a
6:25:18significant low.
6:25:20Once we have the potential for orders to
6:25:22be filled, what do I need to see? I need
6:25:25to see
6:25:27confirmation that the orders actually
6:25:30were filled.
6:25:32How can I see confirmation of that?
6:25:35through a change in trend on the lower
6:25:38time frames via a break of structure,
6:25:41via an inverse fair value gap. From
6:25:44there, I want to see a continuation
6:25:48of that new trend that was formed.
6:25:52How do I spot continuation of a new
6:25:54trend that was formed? Via equilibrium
6:25:57and via fair value gaps. And then if you
6:26:01want to during that process when you're
6:26:03looking at the continuation, you can
6:26:06scale down into the lower time frames to
6:26:09be able to spot confirmation
6:26:12out of the continuation confluence
6:26:16to prove that price is going to go down
6:26:17a little bit earlier than just waiting
6:26:20for a fiveminute candlestick to close.
6:26:22Because notice this is going to be a lot
6:26:24better entry than if we wait for
6:26:33the next 5minut candlestick to close
6:26:41because now again we would be entering
6:26:45this trade down here instead of up here
6:26:48and one of our takerits has just been
6:26:50hit. So while my take-profit one is
6:26:52getting hit, you guys are just now
6:26:55entering by waiting for this candlestick
6:26:57down. And again, we can look in here. It
6:27:00is very obvious that we push into the
6:27:03continuation confluence and then we
6:27:04confirm that orders were filled out of
6:27:06the continuation confluence on the lower
6:27:08time frame because we're disrespecting
6:27:11bullish continuation confluences right
6:27:14here. So what's that telling me? It's
6:27:16telling me that hey, we're disrespecting
6:27:18bullish continuation confluences. we're
6:27:20going to go down, right? And if that's
6:27:23the case, then we're probably going to
6:27:25sell off pretty hard towards our draws
6:27:27and liquidity, which again are where we
6:27:30are going to be able to offload
6:27:33all of the orders that we filled up
6:27:35here, which is the last step of our
6:27:37strategy. So, we need the opportunity to
6:27:39fill orders. We need confirmation that
6:27:42that opportunity was actually taken by
6:27:45seeing orders get filled through a
6:27:47change in structure via break of
6:27:49structure or an inverse fair value gap.
6:27:51From there I want to see a continuation
6:27:53of the new trend that is formed off of
6:27:56the orders getting filled via
6:27:57equilibrium or fair value gap. And then
6:28:00from there I want to exit the position
6:28:02where we are going to be able to
6:28:05liquidate the orders that were filled.
6:28:08So again, where do we have the potential
6:28:10to fill orders? Up here. And in this
6:28:12case, we had a bearish SMT divergence.
6:28:14So that strengthens by bearish bias.
6:28:17Now, you're probably saying, "I thought
6:28:18you had a bullish bias going into the
6:28:19day." Yes, that's correct. I did have a
6:28:21bullish bias today, but what did the
6:28:23market do? The market proved me wrong
6:28:26and instead did what it wanted to do.
6:28:29So, there's very many ways or there's so
6:28:31many times where I'll come into the
6:28:32market and I'll be looking and I'll be
6:28:34saying, "Hey, these highs look really
6:28:36good. I want us to target those highs."
6:28:37and then we'll have this exact movement
6:28:39happen. And it's just like the market
6:28:41was like, "You're just wrong for the
6:28:42day."
6:28:44Okay? And that's completely fine. We can
6:28:48let the market prove us wrong and we can
6:28:50still make money. Okay? So, we have the
6:28:52potential for orders to get filled
6:28:56above these highs on NASDAQ. And in
6:28:59turn, we made a bearish SMT. So, we know
6:29:01that NASDAQ swept out the highs. ES
6:29:04didn't. So this is still a potential for
6:29:06orders to be filled. We saw confirmation
6:29:08that the orders were filled with a
6:29:105-minute break of structure. We saw
6:29:11continuation of the new trend that was
6:29:14formed by 5minute equilibrium and then
6:29:17we saw confirmation out of that
6:29:20continuation confluence on the 1 minute
6:29:23and then we entered and then we are
6:29:25looking to exit underneath significant
6:29:28lows in the market where
6:29:32these orders that were filled are able
6:29:35to get liquidated and to be exited.
6:29:38Okay, so we can let this
6:29:43play out. You can see that the rest of
6:29:47every single take profit ends up getting
6:29:49hit. Okay, so we hit take profit one,
6:29:51take profit two, and take profit three,
6:29:54and I was able I was able to make a
6:29:56significant amount of money off of this
6:29:58trade. And that is quite literally how I
6:30:02look to take trades in the market every
6:30:03single day. Okay, I look for and you
6:30:08guys should be doing the same. You
6:30:10should be looking for potential for
6:30:12orders to get filled. Where do we see
6:30:13potential for orders to get filled? Via
6:30:15liquidity sweeps. How do we confirm that
6:30:18orders have been filled? Through
6:30:19confirmation confluences. How do we see
6:30:22continuation of the new trend off of
6:30:24those orders that were filled? Through
6:30:26our continuation confluences,
6:30:28equilibrium or for value gaps. And then
6:30:31where are we looking to exit the trade
6:30:33once we get that entry? We are looking
6:30:35to exit the trade at possible
6:30:37liquidation points such as high time
6:30:39frame highs, high time frame lows,
6:30:40previous session highs, previous session
6:30:42lows where those orders that were filled
6:30:45can be liquidated, right? Again, we want
6:30:47to think about liquidity. And that's why
6:30:50my strategy makes sense. My strategy
6:30:52makes sense if you think about it and
6:30:54you guys think about how I just talked
6:30:56you through it. We have the potential to
6:30:57fill orders. We see confirmation that
6:31:00orders are filled. We see continuation
6:31:01of the trend once those orders have been
6:31:03filled and then we exit in areas where
6:31:05those orders can be liquidated. We are
6:31:07quite simply trading and moving with the
6:31:11market flows with the inflows and
6:31:13outflows of the market. That is how we
6:31:15are trading. We're not trading off of
6:31:18support and resistance. Okay, price is
6:31:21bang like bouncing off of a floor and
6:31:23it's going to go to a ceiling. Like come
6:31:26on. Like what like what what even is the
6:31:28thought process on that? like you you
6:31:29might as well you might as well like
6:31:34like you're just flipping a coin at that
6:31:35point. You're just like hoping and
6:31:37praying. Um I'm not the big I'm not the
6:31:40biggest fan of support and resistance. I
6:31:41know there's some people that are very
6:31:42successful with it, but me personally,
6:31:44I'm not the biggest fan of it. Um so
6:31:47yeah, that's my strategy explained.
6:31:50Hopefully you guys enjoyed it and
6:31:52hopefully this entire series has helped
6:31:55you guys become better traders. So, with
6:31:57that being said, it's been a fun little
6:31:59ride. Path to profitability has been
6:32:01lit. Um, but with that being said, I
6:32:04love and appreciate you guys. I'll catch
6:32:06you guys
6:32:08on probably a trade recap, not on Monday
6:32:10because Monday market is closed. We'll
6:32:13do a trade recap on Tuesday or I don't
6:32:16know, maybe a YouTube video, something
6:32:19else, me teaching you guys other
6:32:20concepts, maybe how to pass a funded
6:32:21account. I don't freaking know. But I'll
6:32:24catch you guys regardless. love you. If
6:32:26you made it this far into the video, I
6:32:28just have to say that I already have
6:32:31enough faith in you because 99% of
6:32:34people do not have the attention span to
6:32:36be able to sit through this long of a
6:32:38video dedicated to one skill set to even
6:32:42have the belief in themselves to think
6:32:44that they can be able to change their
6:32:46lives for the better. And at the end of
6:32:47the day, that's all that it takes. You
6:32:49know, everybody is on a different
6:32:51different timeline for themselves to be
6:32:55able to turn them into a profitable
6:32:56trader or to be able to find success or
6:32:58be able to make money. But at the end of
6:33:00the day, every single successful person,
6:33:02they all have one specific trait and
6:33:04it's belief in themselves and the belief
6:33:06[music] and the will to never ever ever
6:33:09give up no matter what. So, if you guys
6:33:11even took a chance to watch this video
6:33:14and [music] said, "Oh yeah, I think day
6:33:16trading is going to be something for
6:33:18me." me and you guys made it to the end
6:33:19of this video. I want you guys to never
6:33:22leave or never let go of that feeling
6:33:24that you guys feel today while watching
6:33:26this video that you guys think that you
6:33:28have the possibility to change your
6:33:29life. It actually is so freaking
6:33:31devastating watching so many kids who
6:33:34have this dream and end up letting it
6:33:36die out and end up settling for the rest
6:33:39of their lives. Would you rather be the
6:33:41person that is on their deathbed
6:33:43thinking, "Hell [music] yeah, I have
6:33:45literally no regrets for my entire life
6:33:47because I gave it my all. I gave it up
6:33:49my all, chasing my dreams, chasing my
6:33:50goals, and doing everything that I ever
6:33:52wanted with my life." Or would you be
6:33:55laying on your deathbed thinking, "What
6:33:58if? What if this worked out? What if I
6:34:01spent a little bit more time on this?
6:34:02What if I actually pursued [music] that
6:34:04thing that I was thinking about when I
6:34:06was in my 20s?" Never in my entire life
6:34:10would I ever want to be that second
6:34:12individual because I know personally
6:34:14with my life I wanted to quit so many
6:34:16times. I actually tried to attempted
6:34:18[music] to end my life multiple times.
6:34:20And I mean it jeez, bro. Every every
6:34:23time that I think about this, it just
6:34:24takes me back to how much of a scary
6:34:27time it was for me when I was struggling
6:34:31with my own life [music] and
6:34:34how sad it was because I had no goals. I
6:34:37had no ambitions and it felt [music]
6:34:39like nobody loved me. And the second
6:34:41that I realized that is just a sad way
6:34:44to look at the world [music]
6:34:46and that I have full power and full
6:34:49control [music] over my life and so do
6:34:52you to be able to change it to be able
6:34:55to do whatever you want to be able to
6:34:56make as much money as you could ever
6:34:58imagine in the entire world. That's the
6:35:00second that your life gets unlocked and
6:35:02that's the second that you can actually
6:35:04[music] start living it. And you know,
6:35:06if you watch this video and you think,
6:35:08"Oh, yeah, trading is not for me."
6:35:09That's fine. But I want to encourage you
6:35:13to never let that drive, never let that
6:35:17feeling of, "I can do something better
6:35:19with my life ever go." Because that is
6:35:23what keeps you alive. That is what makes
6:35:26life so fun. You only have one life. So
6:35:29why the [ __ ] would you waste it? Why the
6:35:32[ __ ] would you settle? Why the [ __ ]
6:35:33would you work a job that you hate? Why?
6:35:36Why would you do that to yourself? Why
6:35:38[music] don't you take a freaking
6:35:39chance? Why don't you take a chance on
6:35:41yourself? And guess what? When you take
6:35:43a chance on yourself, the only person
6:35:46that can fail you is you. And best
6:35:48believe that there is no such thing as
6:35:50failure until you quit. And if you're
6:35:52the one that decides whether or not you
6:35:54fail, because you're the one that's
6:35:55going to decide whether or not you quit,
6:35:57then guess what? You're never going to
6:35:59[ __ ] fail. You're always going to be
6:36:00a winner. You can turn every single loss
6:36:03into a win no matter what. Every single
6:36:05failure, every single loss, every single
6:36:08mistake is a opportunity that you can
6:36:11seize that you can look towards for
6:36:13growth and for more success for your
6:36:15life. So again, I just want you guys to
6:36:19leave with this one thing. Whether you
6:36:21guys are pursuing trading full-time and
6:36:24really want to make this work, you guys
6:36:26have a specific feeling in your chest,
6:36:28in your heart right now that is telling
6:36:30you that you guys have an opportunity to
6:36:33either change your life for the better
6:36:35or go down the same path that [music]
6:36:37literally every single other person in
6:36:40the world goes down. Living a life that
6:36:42they hate, working a job that they hate,
6:36:45and feeling [music] very unfulfilled and
6:36:47feeling sad. You're lit literally just
6:36:51giving your life up to the system. I
6:36:54would I wouldn't be here on this earth
6:36:56if I had to live that life. And that's
6:36:58actually why I was struggling with
6:37:00mental health so much is just because I
6:37:02could not see myself there. I was
6:37:04driving myself insane because of how
6:37:07badly I wanted this. [music] And I know
6:37:09for a fact that you guys are at a
6:37:11crossroads right now where you guys have
6:37:13a choice to either take that chance on
6:37:15yourself or just say, "Nope, I don't
6:37:17think I can do it. I don't think I can
6:37:19do it and I'll leave it. I'll give that
6:37:22opportunity to somebody else because
6:37:23guess what? God gives every single
6:37:26person opportunities. He drops
6:37:28opportunities from the sky every single
6:37:30day. And it is up to you to reach your
6:37:33hands out and take that opportunity and
6:37:35freaking run with it. I would be [music]
6:37:37pissed off if God put an opportunity
6:37:40right in front of my face and I said,
6:37:41"Nope. I'm not deserving of that. I'm
6:37:43just going to live a regular life." No.
6:37:46God is putting in an opportunity right
6:37:48in front of your face right now. And it
6:37:49is up to you to grab it and freaking
6:37:53run. You guys are being faced with a
6:37:55decision. And it doesn't even have to be
6:37:56with trading. It can be with whatever
6:37:58the freak you want to do with your life.
6:38:00If you guys get one thing from this
6:38:02video, hopefully you guys learned a lot
6:38:04more than just this. But if you guys can
6:38:07take one thing from this video, it's
6:38:08that whatever you guys want to do with
6:38:10your life, you are able to do it. Take a
6:38:12freaking chance.
6:38:14The worst thing that could possibly
6:38:16happen is that you end up in the exact
6:38:18same position that you're in now. But at
6:38:20least you tried. [music] At least you
6:38:22gave it a shot. The other option is you
6:38:26continue living the same life that
6:38:27you're living right now. And personally,
6:38:32I know from my experience,
6:38:34the life that I was living prior to all
6:38:36of this was not fun. It was not
6:38:38enjoyable. It made me sad. It made me
6:38:42depressed. And I'm sure a lot of you
6:38:44guys are living that life right now. And
6:38:47I just want you guys to know that there
6:38:49is light at the end of the tunnel for
6:38:50you. I don't know how long it's going to
6:38:52take. I don't know at what point in time
6:38:55you guys are at on your timeline of
6:38:57success, but I can promise you without a
6:39:00doubt in my mind, and I'm telling you
6:39:02this because I have done it.
6:39:06You cannot give up on your dreams. You
6:39:08cannot give up on your goals. Because
6:39:11the second that you give up is the
6:39:12second that you fail. You will never
6:39:14fail. You will never lose if you don't
6:39:17give up.
6:39:20The only thing that stops you is death
6:39:23if you never give up. So please, if you
6:39:25guys take one thing away from this
6:39:26video, understand that anything is
6:39:28possible [music] with your life. I don't
6:39:30need you guys to fully [snorts] pursue
6:39:34trading. This is a free video to
6:39:37hopefully help you guys change your life
6:39:39for the better. And I've changed
6:39:42thousands of other people's lives
6:39:44through my free content and also by
6:39:47helping them through [music] paid
6:39:49content, through paid education where I
6:39:52help them one-on-one. Individuals that
6:39:54come to me directly with their questions
6:39:56because sometimes it's not as simple as
6:39:58just watching a couple hourong YouTube
6:40:00video and then boom, it's all in my
6:40:02brain immediately. Sometimes you fail.
6:40:04Sometimes you need help. Sometimes you
6:40:05need a coach to be by your side to help
6:40:07you get to where you want to go. But at
6:40:10the end of the day, what do all of those
6:40:12people have in common that had success
6:40:15that were able to actually make it out?
6:40:16They never stopped believing in
6:40:18themselves. If you guys have belief in
6:40:20yourself and you have belief that you
6:40:22are [music] able to do it, then I
6:40:23promise you without a doubt in my mind,
6:40:26I know for a fact that you guys will be
6:40:27able to get there. Okay? So, that being
6:40:30said, I love and appreciate you guys.
6:40:32We'll catch you guys in the next one.
6:40:34Peace out.

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