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How To Start ICT Trading For Beginners 2026 (Full Course) — Transcript

by PB Blake · 62,805 words · 8,569 segments · language en · Watch on YouTube

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0:00I've been day trading for over four
0:01years and I've managed to build a sevenf
0:03figureure income through trading. And
0:04honestly, I wouldn't want to have it any
0:06other way. But I didn't get here by
0:08guessing or randomly clicking on the
0:10charts. I actually started just like
0:11most of you watching right now in my
0:13college dorm. I was overwhelmed watching
0:15random YouTube videos trying to figure
0:16out where to even begin with day
0:18trading. That's why in today's video,
0:19I'm giving you the full course that I
0:21wish I had when I was first starting
0:22out. But if you click off this video,
0:23you're going to miss the complete
0:24step-by-step process to start trading
0:26ICT in 2026. So, let's get into it.
0:29First, what makes a good trader who
0:30lasts long and trades for a living is
0:32the ability to read price action like a
0:34language. And most beginners when
0:36they're getting into trading think that
0:37they're going to make a lot of money
0:38very fast. And that belief is exactly
0:41why the statistic of 99% of traders
0:43fail. The truth is with day trading,
0:45it's not about quick wins. It's about
0:47mastering your psychology on and off the
0:49charts. And to be fully transparent with
0:51you guys, it took me a year and a half
0:53to become profitable. Not because I
0:55wasn't working hard, but because I was
0:56doing just a lot of things wrong. I was
0:58constantly strategy hopping. I didn't
1:00know which concepts to learn. I didn't
1:02know who to learn from. And I didn't
1:03have a clear step-by-step process to
1:05follow. Which is why the entire purpose
1:07of this course is to cut down that
1:09learning curve for you. Instead of you
1:10wasting months on things that don't
1:12matter, I'm going to tell you exactly
1:13what to do in the exact order to do it.
1:15So, I'm telling you guys, this process
1:17isn't going to be easy. It's going to
1:18take months and months of showing up
1:20consistently every single day, putting
1:22in that work without even seeing money
1:24flowing in. You might not see
1:25profitability in six months, maybe not
1:26even a year, maybe not even a year and a
1:28half, like how long it took me. But
1:29that's not what you should be focusing
1:31on coming into this. I want you guys to
1:33just focus on the inputs, things that
1:35you have complete control over, and not
1:37the outcome. Because I'm telling you,
1:38the more you focus on, oh my god, I
1:40didn't make money today. I didn't
1:41progress. Or, oh my gosh, I lost money
1:43today. I did something wrong. The more
1:45you focus on those things, like your
1:46day-to-day P&L, the less progression
1:48you're going to see in the long run. So,
1:49that's exactly why you guys need to set
1:51clear expectations for yourself and just
1:52focus on getting 1% better every single
1:55day because again, this is a very long
1:57process. And I'm not going to lie, it's
1:59very tough. And that's exactly why this
2:01skill that you get to have for the rest
2:02of your life is so rewarding. Now, you
2:04need the right tools to get the best
2:06possible advantage, especially when
2:07you're just starting out trading. As a
2:09beginner, your only goal should just be
2:11learning in this phase. So, having a
2:12clean, simple interface will make that
2:14process 10 times easier. And trust me,
2:16the last thing you need when you're
2:17trying to become confident on the charts
2:18is having a completely clustered and
2:20unorganized setup. A lot of people
2:21overcomplicate this first step, but I'm
2:23going to tell you exactly what you need
2:24in order to start day trading. All
2:25right, so first things first, I want you
2:27guys to go ahead and search up download
2:29Trading View on your web browser. Okay,
2:31you're going to see this button right
2:32here where it says Trading View desktop
2:34application. I want you to go ahead and
2:35click on that. Once you get to this
2:37screen right here, you're going to see
2:39download for Windows, download for Mac,
2:40download for Linux. Whatever you're on,
2:42click download. I'm personally on
2:43Windows, so I would click download for
2:44Windows. I already have it downloaded so
2:46I don't need to download this. Trading
2:47View is by far the best UI, best
2:49software, best platform for charting
2:51there is in the game. All the pro
2:53traders use it. I use it and it's super
2:55super clean. You can also connect all
2:56your brokers to it. So I connect my AMP
2:58live account to this as you can see
3:00right here. Here's my AMP live account,
3:02right? There's a trade I took on it
3:03yesterday. So not only can you chart on
3:04it, you can also trade with it, right?
3:06Which is going to be really important.
3:07And you can also start paper trading on
3:09it and super super clean. But let's fix
3:11up your charts cuz I know when you
3:14downloaded it now you have it opened up
3:15and you're like Blake mine doesn't look
3:17like that. Mine looks really ugly. So I
3:19know yours probably looks something like
3:20this, right? Super ugly, not clean
3:23whatsoever. So let's fix that up. First
3:25things first, I want you guys to go over
3:27to the top left panel here. Click on
3:28dark theme. Okay, immediately. Wo, that
3:31is way better. Way cleaner on the eyes
3:33and really, really nice. Okay. So, next
3:35up, I want you guys, you can just
3:37literally honestly copy my chart colors.
3:39If you guys like these chart colors, you
3:40can copy them. Um, feel free to change
3:42them later on if you don't like them
3:43later on. Symbol, have it be this colors
3:46bars based on previous clothes. Make
3:47sure you have that body. Make sure your
3:49body is this color. My body is this
3:51color. B2B 5B. And then the other body
3:55is this color. 43 4651.
3:58Then the borders are black. and the
4:00wicks are black black with 100% opacity
4:03on all these. This is really really
4:05important session. Okay, make sure you
4:07have electronic trading hours on etc not
4:10RTC. Okay, RTC is going to give you a
4:13bunch of random gaps everywhere. As you
4:15can see, just a bunch of random gaps
4:16that are not necessary. ETC will still
4:18have new week opening gaps, new day
4:20opening gaps that do get printed, but
4:21it's not going to be as drastic and as
4:24annoying. So, just make sure you have
4:25ETC on cuz we are trading electronic
4:27trading hours. Background, I just have
4:29zero. I don't have that on. Precision,
4:31make sure it's default time zone. It
4:33depends on what time zone you're
4:35obviously on. Right. I'm in New York and
4:38uh it's the easiest to understand that
4:40market open for me is always at 9:30
4:42a.m. Eastern, right? And that's what I'm
4:44trading. So, make sure you have UTC-5
4:46New York. Again, depends on where you
4:48are in the world. But I still honestly
4:49recommend that you guys just keep it on
4:51that just so you can know like 9:30 a.m.
4:53Eastern time is the time where the New
4:55York Stock Exchange is open, right? So,
4:57yeah. Moving on, we can go to status
4:58line. We have logo, title, title, keep
5:01that on, right? So you can actually know
5:03what you're on. Open market status. It's
5:05nice to know that the market is open
5:06with that green button right there. And
5:08then it will tell you when it's closed
5:10for holidays, right? There's going to be
5:11a lot of holidays. Like that's also the
5:13beauty about trading, guys, is that
5:14there's a lot of holidays that days that
5:16you get off as a trader like Christmas,
5:18New Year's, right? Thanksgiving,
5:20President's Day. Like there's so many
5:22holidays. So make sure you have that on
5:23so you know that the market is actually
5:24open or closed. Chart values. Yeah, keep
5:27that on. You can keep that on if you
5:28want. I have that on. Bar change values,
5:29you can also keep that on. Volume, I do
5:31not have that on. Last day change
5:33values, I don't really have that on.
5:34Honestly, like this isn't even really
5:36necessary. That's to me a lot cleaner or
5:38something like this. Honestly, like I
5:39like this cleaner. It's really up to
5:41you. To me, like I I don't really need
5:42that. So, this is clean. So, nice
5:44indicators, titles. Yes, keep this on.
5:47You're going to add some indicators
5:48soon. I'll show you guys that in a
5:50second. Inputs. Don't need it. Values.
5:52Yep. Keep that background. I don't
5:54really know what's going on there. Okay,
5:55moving on. Let's go to scales and lines.
5:57Currency and unit visible on mouse over.
6:00Scales modes visible on mouse over. Lock
6:02bar to price ratio. I don't have that
6:04on. Scales placement, have it auto.
6:06Price labels, no overlapping. Plus
6:08button. Countdown to bar close. Have
6:10that on so you can actually see when the
6:12candle is going to close. If not, you
6:14won't know when the candle is closing.
6:16Okay. Very nice. Very nice. Symbol value
6:18line. Nice. Keep that on. Value
6:20according to scale. Previous day close.
6:22I just have it hidden. Indicators and
6:24financials. Value. High and low. have
6:26that hidden bit and ask hidden time of
6:29week on labels. I keep that on. So I
6:31actually know like you can see on the
6:32bottom here we have Monday December 29th
6:342025 right keep that on time hours I
6:37have it on 12 hours. Some people don't
6:39like that and like it on 24 hours. That
6:41just obviously changes it to 24 hours
6:43time military time but I just like
6:45having it on 12 hours cuz I live in the
6:48US and I don't look at times on military
6:50times. So yeah. Okay. Moving on to your
6:52background. And I know your background
6:53on right now is probably pretty ugly or
6:55it's on dark, right? But overall, you
6:57should change that to something a little
6:59bit more sexy like this if you want. My
7:01background color is this. It's C2 B A A
7:04E. Really, really clean. Before yours
7:06was probably like white or something,
7:08not clean. Now, grid lines. I don't have
7:10any grid lines on. I just have none. So,
7:13I just don't like the grid lines.
7:14Crosshair, I have it as this, right?
7:16Just your crosshair. Watermark. Have
7:18that hidden. I do not like having like
7:20the ticker on this. Some people do, but
7:23like I personally think it's just ugly.
7:24I want to have a cleaner chart. So, I
7:26just have that hidden text. I have it on
7:28black. 12 lines like this. Navigation
7:31visible on mouse over plane visible and
7:33mouse over. Margins look like this. Now,
7:35for your trading, have buy and sell
7:37buttons. Yes, have that be displayed up
7:39there. One click trading. So, this is
7:41basically you can place a trade and you
7:42will get entered in immediately. We're
7:44going to try not to. I usually have this
7:46off only when I'm actively trading
7:48because it's obviously very far away. I
7:49can go and hover over it, click
7:51immediately, and it'll immediately enter
7:52you into a market order. But yeah, just
7:54leave that off for now. Position and
7:55orders, make sure you have that.
7:57Execution marks, I like to have these on
7:58just so I know what trades I've taken.
8:01Profit and loss value. Yep. All this.
8:02Yep, yep, yep. Moving on. Alerts. Have
8:05alert lines on. I have these on so I can
8:07know like when TPS hit, maybe I'm in the
8:09bathroom or something or maybe I need to
8:11go do something, I can add an alert. So,
8:13it's really cool and we'll get into that
8:14later. events, futures, contract
8:15explanation, latest news, and that's
8:18that. Cool. Now, we're all set up.
8:20Charts are looking beautiful. Hopefully,
8:21looking like mine or not. Or you can
8:23have your charts look maybe black and
8:24white, and you like it like that. So, if
8:26you guys look to the left of you, you
8:28guys see all of your indexes, your
8:30stocks, your futures, your forex, your
8:32crypto, and you're like, Blake, I'm
8:33overwhelmed. What are we doing? What are
8:35we trading? I'm going to keep this
8:36really simple for you guys because I
8:37keep my trading very simple. And I
8:39literally only trade the NASDAQ futures
8:41charts. I trade futures. I don't trade
8:43forex contracts. I don't trade stocks,
8:46right? I just trade the index of the
8:47futures, the NASDAQ, the S&P 500, the
8:50500 biggest companies of the world,
8:53right? That's the S&P 500. So, I trade
8:55that and I trade the NASDAQ, right? So,
8:57I place trades on the NASDAQ and I use
8:58the S&P 500 for my a little bit more
9:01analysis, but yeah, let's get into that.
9:03Okay, so all right, so you're going to
9:04go up here to your watch list, right?
9:05You're going to see add symbol and you
9:07can see NQ, right? You're going to
9:08search NQ and that is in your futures
9:11and E- mini NASDAQ 100 futures charts.
9:14You're going to click that and you're
9:15going to need to join up obviously and
9:16sign up with your account. So, make sure
9:18you do that. But I have that on. Um, as
9:20you guys can see from my top left, all I
9:22really have is NASDAQ, ES, MNQ, XRP,
9:25Ethereum, and Bitcoin when I want to
9:27check those. But yeah, make sure you
9:28have NQ. You can put it like this. I
9:30have it on NQH2026. There is usually a
9:33contract rollover. I believe it's every
9:353 months, every 2 3 months where the
9:36contracts roll over. there's a new
9:38contract and you have to switch that,
9:39you can just for simple sake for you
9:41guys right now, just click on NASDAQ and
9:43you just search up NQ like this. Boom.
9:45Have that open. Super super clean.
9:47Really, really simple. Then ES. You just
9:49search up ES and you'll see ES mini 500
9:52futures. Open that. Um, and to put it on
9:54your watch list, just click this button
9:55right here. Oh, and I just took it off
9:57my watch list by accident. So, let's go
9:58back there and I'll show you how to add
10:00it. NQ. I just put NQ cuz that's
10:02currently the contract we're in 2026.
10:04And then you click this or sorry, this
10:06button right here, this flag symbol.
10:07Then boom, and you can drag it up. I
10:08have this first, I have ES second. So
10:11there's NQ and then there's MNQ, right?
10:13NQ is for your like it it's just you
10:16need more money to be trading NQ. MNQ,
10:18you don't need as much money to be
10:20trading. So if you're trading one NQ
10:22contract, that is equivalent to 10 MNQ
10:25contracts, right? So you can't trade.5.
10:28Like let's say this risk is too much for
10:30you. You don't want to trade one
10:31contract. Maybe the volatility is too
10:33much and you're like, damn, I wish I
10:34could trade.5 contracts, but I can't. I
10:36can't trade 0.5. It's not letting me.
10:38So, what you do is you can go on MNQ and
10:40then you can trade five MNQ contracts.
10:42And that's the equivalent to.5 NQs,
10:45right? So, it's just basically tenth of
10:47it. So, just so you guys know, that's
10:48what I also have open. I trade that when
10:50I'm trading with my funded accounts and
10:51when I'm trying to trade a little bit
10:53lower risk. But, yeah, there's also XRP,
10:55Ethereum, Bitcoin, and yeah, hopefully
10:57these do something. But yeah, you're
10:59probably going to see right up here,
11:00you're going to see that you have
11:02delayed data. And you're going to be
11:03like, why am I 10 minutes behind? What's
11:05actually happening? Well, you need to
11:06buy data. Okay, so the CME markets don't
11:09just give you that for free. And let's
11:11get into it. Okay, so just first things
11:13first, guys. Yeah, we are just trading
11:14again NASDAQ futures and ES futures. So
11:17you're going to need to buy the uh CME
11:19data for that. So let's go ahead go back
11:21to our trading view. You're going to go
11:23up here to products and you're going to
11:25go down to the about section and the
11:27final drop down right here where it says
11:29market data. All right. So, you're going
11:30to scroll down here and you're going to
11:32see that you have US stocks, market
11:33bundle, delay data, free, and then
11:35real-time data, non-professional fees.
11:37You're just going to do non-professional
11:38fees. Since you are a non-professional
11:40trader, and you're going to see where it
11:41says CME Group, E- Mini included. Click
11:44on this button right here. Click learn
11:45more. And you're going to scroll down
11:46and click subscribe to realtime CME
11:49Group futures. Okay, you're this is
11:50around $7 a month. Okay, really, really
11:53cheap. But you need this in order to
11:55start paper trading and start, you know,
11:57live trading. You need this. So, make
11:58sure you subscribe to this. Again, only
12:00seven bucks. And then also, if you guys
12:02need to, and I do think it's honestly
12:05necessary to buy one more thing with
12:07Trading View, and it's going to be up
12:09here. You're going to click pricing.
12:10Okay, so products, pricing. I definitely
12:13recommend you guys click the essential
12:14plan right here. You can try it for free
12:16for 30 days as well. But this basically
12:18give you two charts per tabs, right?
12:19Because before, and as you guys see
12:21here, I use both NQ and ES to do my
12:24analysis, right? So, I need ES to be
12:26open with me, right? while I'm trading
12:28so I can see that right and this is also
12:30the wrong ES right here it is and I need
12:32ES to be open with me right and I
12:34usually am trading and my charts usually
12:36look something like this but without
12:37this you guys are not going to be able
12:39to open that up right you go here you
12:41click layout setup and you click this
12:42and you see oh I need to buy a basic
12:45plan so just click the or sorry the
12:47essential plan so make sure you buy that
12:48essential plan now so you guys you know
12:51don't have to worry about that later so
12:52that's going to be around $12 a month
12:55and another $7 a month 13 You're paying
12:5720 bucks a month to start trading.
12:59Really, really cheap. And that's why I
13:00love Trading View. It's really cheap.
13:02It's really nice, especially beginner
13:03friendly. But yeah, you can get five
13:05indicators per chart. All of this
13:06historical data, so you can go back in
13:08replay mode as well. 20 price alerts, 20
13:11technical alerts, and uh you can have,
13:12you know, alerts on your charts. That's
13:14also super helpful. And yeah, I'm also
13:16going to give you guys quickly some
13:17indicators. It's you're going to be
13:19really confusing be like, why do these
13:20even matter right now? But it's just
13:22important that you have these indicators
13:23on your chart now so you don't have to
13:25worry about them later. Okay? Equal
13:26highs and lows indicator. This is by
13:28Jay-Z Easter. So, make sure you just
13:29search up in your indicators right here.
13:31Equal highs and lows. And then you're
13:33going to see Jay-Zster. This one is
13:35super super gas. Click on that one. It
13:37basically just marks out all the equal
13:38highs and lows for you on the chart. And
13:40then we have ICT kill zones and pivots.
13:42This is going to give you all of, you
13:44know, your session times. Make sure you
13:46copy these session settings right here.
13:4720 to 0. London session is from 2:00
13:50a.m. to 5:00 a.m. New York AM session is
13:52from 9:30 a.m. to 11:00 a.m. New York
13:54lunch is from 12 to13. New York PM is
13:56from 13 to6. Okay, click on that. And
13:59then this is from TFO. So you're going
14:00to click indicators again and search up
14:02ICT kill zones and pivots by trade for
14:05OP TFO. Click on that super gas. Then
14:07the final indicator you need and I only
14:09use three indicators and I really don't
14:10even use this one that much. Really I
14:12only use these two but when I'm like too
14:14lazy to mark out the fair rally gaps
14:15myself, I'll just use fair rally gap
14:16indicator by nephew Sam. So you click up
14:18for value gap indicator by nephew Sam.
14:20You can click this one or the IFG
14:21indicator I think he also has. So if I
14:23upgrade
14:25nephew I don't know where it is but for
14:26valu click for value gap indicator by
14:28nephew Sam super gas. And yeah you guys
14:30are also going to see up here. I don't
14:32know if I didn't go over this yet but
14:33you're going to see all these minutes on
14:35your charts. You going to see 1 minute 2
14:36minute 3 minute 4 minute 5 minute 6
14:38minute 7 minute. All these minutes 15
14:39minute to hourly to 4 hour to daily time
14:42frames. And I'm going to get into
14:43candlesticks in a second guys but I just
14:44want to make sure you have a clean UI to
14:46start off. Now, not going to overwhelm
14:47you just yet, but yeah, we're going to
14:49get into that in just about a second
14:50here. All right, so we are going to get
14:51into the concepts in just about a second
14:52here, guys. But I want to go over just
14:54simply how to place a trade on your
14:56paper trading account on your Trading
14:58View. Okay, we gone over so far how to
15:00download Trading View, right? How to
15:01clean up your charts. We've gone over
15:03pretty much all of the indicators you
15:04need, all the charts colors you need,
15:07all of that stuff, and what to put on
15:09your symbols, right? But now I want to
15:11show you exactly how to click buy, how
15:13to click sell, and how to start paper
15:15trading. I don't want you really to
15:16start paper trading just yet, right? I
15:18want you to of course, you know, first
15:19learn the concepts and not just like
15:21randomly click on the charts, but I want
15:22you to still like have an general
15:24understanding of how futures trading
15:26works. So, I want to teach you guys this
15:27first, but yeah, click on right here.
15:29You're going to see trading panel. Okay,
15:31you're going to open up your trading
15:32panel right here and you're going to see
15:33all of our trusted brokers. Okay, you
15:35can see paper trading, forex, trade of
15:37AMP. I use Trade of my funded accounts
15:40and I use AMP for my live account. I'm
15:42looking to switch over to Trader 8 for
15:43everything just to make it all cleaner.
15:45But yeah, and tra paper trading on
15:47Trading View is what you guys are going
15:48to click. So click right here. Click
15:50paper trading. Click connect. And what
15:52this lets you do is essentially practice
15:53with real money. But create account
15:55here. And you're going to name this,
15:57let's name this PB Blake paper trading.
16:00And you're going to set an account
16:01balance, let's say, of $100,000, a USD
16:05of let's let's actually put $50,000 cuz
16:07it's probably going to be what your
16:08first account's going to look like.
16:09First fund account. 50. 1 2 3 USD
16:12stocks, leverage, futures, term one, all
16:14that stuff. And looks really good. And
16:17you're going to click create right
16:18there. Bada bing, bada boom. And how do
16:20you actually place a trade blick? Well,
16:22how to place a trade? Let's say I want
16:24to have a buy position right here,
16:26right? Or let's say I want to just enter
16:28buys, put a stop loss here. This is
16:30obviously not a good trade whatsoever,
16:32but and a TP right here, right? You
16:33click buy right here, and you can click
16:35this button right here, and it gives you
16:37this popup, right? where you can have a
16:39buy market limit and a stop. Okay, what
16:41is the differences between all of these,
16:44right? So, a market order will just
16:46immediately put you in a position on
16:48wherever the current price of the chart
16:51is at. So, we're right here, right?
16:53Wherever I click buy, boom, I'm
16:55immediately in on wherever we were at,
16:57right? And as you can see, I'm in this
16:59buy position. So, you know, I'm betting
17:01right now that the market is going to go
17:03up. If it goes up, then I make money.
17:05What you can also do with futures
17:06contracts is bet that the market is
17:08going to go down, right? So hopefully,
17:10let's see, let's hope this goes up.
17:12Okay, it's not going to go up, but
17:13whatever. And then you can click X right
17:15there to close your position as well.
17:17Boom. And you can click close position.
17:18Okay, what you can also do is bet that
17:20the market is going to go down. And I'm
17:22going to remove executions here just for
17:24simplicity. What you can also do is just
17:25bet the market is going to go down. And
17:27you can make money like that as well. So
17:28let's say I want to bet that the market
17:29is going to go down here. I can go up
17:31here to the top left, hit sell market,
17:33and you see here, this is the popup that
17:35we have. And I'm going to click sell.
17:36And immediately, what does it do? Put me
17:38in the exact position that the NASDAQ is
17:40at when I click that sell position.
17:42Okay. And it's a market order, right?
17:44And now, if I mean, I haven't seen
17:45profit. Man, I haven't seen profit in a
17:47while, but it will usually turn green if
17:49it's a profit. Let's see. You guys see
17:50what that looks like. And look, I'm up
17:52five bucks. Okay. And then you can close
17:53your position wherever. Okay. I'm going
17:55to show you guys also though how to take
17:56profits, how to have different orders,
17:59right? So you guys saw that there was
18:00limit orders and market orders and stop
18:02orders. Okay, what do all these mean? So
18:04your limit orders is going to be what's
18:06going to usually take you out of the
18:08position. But you can also place limit
18:10orders to enter you into position. So
18:12what does this mean? Right? I can place
18:13let's say I want to get filled right
18:15here at this gap which we'll get into
18:17later. But let's say I want to enter my
18:19buy position right here, right? I can
18:21place a limit order. So sorry I did that
18:23really fast. But you can also click
18:24right. You can rightclick and click buy
18:26limit. Um, but as well as you can click
18:28right here, have a limit and then you
18:29can kind of just drag and adjust it to
18:31wherever you need to put your buy limit
18:33or you can just hover over exactly where
18:35you want to go. You can rightclick and
18:37click buy limit right there. Okay? And
18:38then you can click buy and boom. So if
18:40price does end up going to this area, it
18:43will enter me into my position, right?
18:44And same thing with the sell limit. If
18:46we go up here, I can put a sell limit
18:47right here, let's say, and it will enter
18:49me into my position. So I know I just
18:51went fast again. Sorry, I was going so
18:53fast there. Um, but you can right click
18:54on an area right here and click sell
18:56limit. Okay. So, let's see if it wants
18:58to fill us in. Pause. Let's see where we
19:00want to fill. Film me. NASDAQ. Film me.
19:02Pause again. Sorry, guys. This price
19:03action is so atrocious. I'm just going
19:05to move my limit order to right here
19:07just so this can hurry up. And this is
19:09why you don't trade after 11:00 on a
19:11Tuesday on December 30th. And what? And
19:16boom. As you guys see right there, it
19:17entered me into a sell position. Right?
19:19So, now I'm in shorts is what they call
19:21it or longs if you got into a buy
19:23position down here, right? But I'm in
19:25shorts right now. Okay. Now, stop
19:27losses. Let's say So, what a stop loss
19:29is, guys, is basically if all goes to
19:31[ __ ] All right. And your trade idea is
19:33wrong. Um, you're going to have a stop
19:34loss, let's say here, right? Let's say I
19:36want to have my stop loss here because
19:37at this point, I don't want the trade to
19:39go up here. And if it does, then my idea
19:41is probably wrong, but I also want to
19:43have a takerit right here. So, let's say
19:45I'm just aiming this is the trade,
19:46right? You can rightclick this area that
19:48you want to have your takerit at and
19:50click buy limit. So if you're in a
19:52short, you have buy limits to take you
19:54out. And then you have what? Above you?
19:57You have buy stop. So buy limits and buy
20:00stops when you're in a short position,
20:02right? Why is this? Well, if I am in
20:04this short, right, I sold contracts
20:06here, so I need to buy them back out in
20:08order for me to get out of the position,
20:10right, and actually earn money. Or if
20:12I'm up here, then I need to buy myself
20:14back out as well if I'm down so I don't
20:17just have no stop-loss and trade without
20:19a stop loss. That is not what we're
20:20going to do. I'm going to teach you guys
20:21how to trade with stop- losses, with
20:23take profits the right way. Okay, so I
20:25don't know when this is going to hit,
20:27but this is taking a little while.
20:29Hopefully, this short bangs, though.
20:30Let's see. And what you guys can also do
20:32instead of like manually clicking these
20:34buy stops and sell stops is you can look
20:36right here. You see TP? You can drag
20:38your TP to let's say here. And then you
20:40can drag your stop loss to let's say
20:42here. So, let's see. Let's see if this
20:43wants to hit our takerit, guys. So, you
20:45can see I will make $175 if this hits.
20:48and I will lose $115 if this doesn't
20:51hit. And boom, my trading view just
20:52glitched out there. What? Okay. Well, if
20:55things like that happen, then just
20:57manually close your position. You can
20:58click that X button there. That was that
20:59was weird. My my trading view just
21:01glitched out there. I don't know what
21:02that was. But that's simply how you
21:04enter into a position with uh paper
21:06trading and Trading View, right? Um as I
21:07described to you guys before, right? One
21:09contract, remember on NQ is equivalent
21:11to 10 contracts on MNQ, right? So, what
21:14does two contracts on NQ look like? 20
21:16MNQ contracts, right? And you can also
21:19enter in like let's say you're literally
21:20only wanted to risk like a couple
21:22dollars. Boom. I can risk one MNQ and
21:24you're going to see it's moving in like
21:25increments of dollars, right? So really
21:27really lowrisk trading if you want to
21:29trade on MNQ, right? And yeah. Okay. So
21:31what have I showed you guys so far how
21:33to do? How to enter a short position,
21:34how to enter a buy position, right? So
21:36if you want to enter a short position,
21:37what do you do? You click market order
21:38right here. You can click one contract
21:40like that, right? And that's how you
21:41enter a market order short position. You
21:43can have your stop loss, right? right
21:45here where if the trade goes up here
21:47then your order will get cancelled and
21:49then you can have a take profit where if
21:50the trade goes down here your order will
21:52get filled right that's simply how you
21:54do that right or you can also do
21:56something like this or you can have a
21:57buy limit personally I do both right it
22:00depends honestly I don't think trade
22:02ovate allows this drag and drop which is
22:05why it's important to you know make sure
22:06to have like a buy limit like this but
22:08yeah that's simply how you do that now
22:10let's say you want to actually buy a
22:12position instead of short right because
22:14can I get out of this? Sorry. I don't
22:16know what is going on my trading view
22:17right now, guys. I'm I'm It's being
22:19really annoying. But let's say I want to
22:21buy a position, right? Let's let's say I
22:22want to enter into some long as they
22:24call it. Okay, which is looking a little
22:27scary, right? Longs are obviously
22:28looking a little scary right now, but
22:29yeah. I mean, let's say we do want to
22:31enter into some longs, right? What do I
22:32do? Well, let's say I just want to enter
22:33right now, right? I click buy position
22:35here. And let's say I want to have a
22:37stop loss right here where if price goes
22:38down to here, I don't want to be in the
22:40trade, right? So, stop loss here. And
22:41then let's say I want to have a takerit
22:43right here, right there or something,
22:45right? Boom. I can click right here the
22:47buy and I can click market buy. Boom. So
22:49I'm in some longs. And then what can I
22:51do? I can have a sell stop, right? So
22:53you right click here and you click sell
22:55stop and then you can have sell limit.
22:57So remember when you're in buy
22:58positions, guys, you have sell stops and
23:00you have sell limits. And when you're in
23:02short positions, remember to have buy
23:04stops and then buy limits. Okay? So that
23:06can actually, you know, it's like the
23:07opposite of what you think, right?
23:09Because you're in a buy position. But
23:10yeah, you need to get you need to sell
23:12back out your contracts, you know, to
23:14actually get it. And then you need to
23:15sell back out of your contracts if
23:16you're in profit, right? Yeah, that's
23:17pretty much that. Also, something to
23:19note is you guys can also have one-click
23:21trading on. So, that's what I usually
23:23have on. I don't recommend that for
23:25beginners because it's pretty scary.
23:26I've done it before on accident where
23:28I've literally like had fat fingers on
23:30my phone and I was trading on my phone
23:32and I just clicked it and boom, like I
23:34just got entered into position. So, you
23:35can see right here there is oneclick
23:37trading, right? where immediately if you
23:39click, let's say immediately I want to
23:40enter shorts. Boom. And you're in that.
23:42So there's no like confirmation or
23:43anything. And you can immediately click
23:45buys and boom, immediately you're in
23:46that. So that's a little scary, but I
23:48use that personally because when I'm
23:49trading my model, I do need that for
23:52like really quick orders, really fast
23:54orders and stuff like that. But yeah,
23:55for now, just leave it on this so you
23:57can have a good understanding of all
23:59this stuff and how it works. You can
24:00also, guys, set your takerit and stop
24:03loss like manually like this. I find
24:05that takes a really long time. But um
24:06yeah, I'll get into risk management and
24:08all of that good stuff and all these
24:10time frames and candlesticks in a second
24:12here, guys. But yeah, I just want to
24:13show you basically the basics basics
24:15basics of future trading and how that
24:17works with trading NQ, trading MNQ. And
24:20right now, I know you're probably like,
24:21what is ES? Like, how have we not used
24:22ES yet? I do not place any of my orders
24:24on ES. I simply just use that to do my
24:27charting analysis with NQ. So, you can
24:29go up here, guys, and you can start, you
24:31know, messing around with this. But you
24:32can click this button right here and you
24:34can actually have dual screens. So I
24:36like to have dual screens where I have
24:37ES on one side, NQ on this side, and
24:39we'll get into all that good stuff. SMTs
24:42and everything in a second here, but
24:44yeah, let's get into concepts now. Yeah.
24:46All right. Now that your charts are all
24:47clean and set up nice, it's time to
24:49learn every single concept there is to
24:51know to become a profitable trader.
24:53Before diving into the actual concepts,
24:55there is a few things that I want you
24:56guys to follow during this phase. First,
24:58I want you guys to know that we are
24:59going to be looking at every single time
25:01frame from the 1 minute to the 5 minute
25:03to the 15-minut to the 4 hour to the
25:05daily to the weekly to the monthly. This
25:07is because price is fractal, meaning the
25:08same patterns are repeating on every
25:10single time frame. Next, I need you guys
25:12to be showing up to the charts daily
25:14because at the end of the day, screen
25:15time is the most important thing when it
25:17comes to trading. You can watch all the
25:18YouTube videos you want, learn as many
25:20concepts as you want, but at the end of
25:21the day, if you are not applying it
25:23yourself, then you are learning nothing.
25:25So throughout this course, please make
25:26sure to be charting alongside me. And
25:28during this phase, please do not be live
25:30trading, risking any of your own
25:32capital. I strictly only want you guys
25:34to be forward testing and paper trading.
25:36Meaning, you're just putting the
25:36position tool down or you're just paper
25:38trading with fake money. Because I see
25:40it so many time with beginner traders,
25:41and I fell into this trap, too, where I
25:43spent thousands of dollars on
25:44evaluations before I was even ready,
25:46before I even knew any concepts, and I
25:49was literally just gambling my money
25:50away and donating to these prop firms.
25:52So, do not spend any money on
25:53evaluations yet. And for sure, please do
25:56not put any money into a live account
25:58yet either. And that being said, let's
25:59dive into the first concept. All right,
26:01so the first concept that we are going
26:03to be covering is candlesticks. This is
26:05the foundation of trading. It shows what
26:08price has done, where price has been,
26:11where it has opened, and where it has
26:12closed. Right? So candlesticks look like
26:15this on a chart, right? It literally
26:16looks like a candlestick where it has a
26:19body. It's made up of bodies and wicks,
26:21right? The bodies tell where you have
26:23opened and closed and the wicks show
26:25where price has been. So you can look at
26:28charts through many different ways. Uh
26:30the most other commonly one to way to
26:32look at charts is through line charts
26:34like this. Um you'll often see this on
26:36like your phone when you're looking at
26:37like the stock app on you know your
26:39phone. But we're day trading and we're
26:41going to be looking at charts on this
26:43candlestick charts like this. It's just
26:45the most easiest way to read these
26:47charts. Okay. So, if we go back up to
26:49the candlesticks right above here, you
26:51see that we have a green candlestick and
26:53we have a red candlestick. Before I even
26:55describe what these mean, just simply
26:57based on the definition, I want to give
27:00you guys a little bit of a real life
27:02example on what this means, right? So, I
27:04like to think of it as a car and its
27:07journey, right? So, if we just draw out
27:09a road here, right? You can see we have
27:11a road and if we get a little car this
27:14is a horrible drawing but the car's
27:15journey starts off right here let's say
27:18right so it starts off right here and
27:20the lowest point in which the car has
27:22been is here in its journey right and
27:24then it turns around then the car starts
27:26turning around and it starts driving up
27:28like this and it's driving and it's
27:30driving and it's driving and maybe it
27:31makes a U-turn and it stops maybe at a
27:33hotel and it ends its journey right
27:35around here say right so the lowest
27:38point in which the car has been was
27:40right here. The highest point in which
27:42the car has been is right here. And
27:44where did the car's journey start? Right
27:45here. And where did the car's journey
27:47end? Right here. And this makes up a
27:49green candlestick. Right? Because the
27:51green candlestick closes above the
27:54opening price. So the car's journey
27:56stops above the opening price. Right? So
27:58you might be a little confused on what's
27:59the difference between a red candlestick
28:00and what makes up a green candlestick.
28:02But now I'll show you an example of what
28:04a red candlestick would look like.
28:05Right? So if we draw draw out a red
28:07candlestick here in terms of a car and
28:10its journey. All right, we can draw out
28:11this car. Boom. Boom. Boom. Draw out the
28:14road. And then we can draw get the emoji
28:16right here. Okay. So a car's journey,
28:18let's say, starts off right here. All
28:20right. And let's say it's moving. It's
28:22moving. And let's say it wants to go up.
28:24And then it's like, no, I actually want
28:25to turn back around. Starts going here.
28:27Starts going here. It can even go up
28:28here. Even go here. And then let's say
28:30it goes here. And then it's like, you
28:32know what? I'm going to end my journey
28:33right around here. So, where did the
28:35car's journey start? It started right
28:38here. Where was the highest point in
28:39which the car has been? It's been here.
28:40The lowest point in which the car has
28:42been here. And where did the car's
28:43journey stop? Right here. Right? So,
28:45this makes up what? A bearish candle. A
28:48red candle, right? And you'll often hear
28:49those terms, guys, uh bullish and
28:51bearish. And you're like, what does that
28:52mean? Bearish just simply means red or,
28:55you know, a downtrend. Uh price is
28:57moving down. And bullish means that
28:59price is moving up. It's a green
29:01candlestick, right? So, think of it like
29:02that. bullish, you know, bulls your
29:04horns, bears lower, I guess, something
29:07like that. So, yeah, just remember
29:08bearish is red, candlestick, you know,
29:10down. Bullish is green going up. Okay,
29:13my [ __ ] hand. But yeah, so this car's
29:16journey started here. This is the
29:17highest point it went again, lowest
29:18point. And since it closes below opening
29:21price, it's what? A red candlestick.
29:22Since the car's journey ended below the
29:24opening price, it's here. Versus the
29:26car's journey ended above opening price,
29:29it makes up a green candlestick. It It
29:31works, right? This is how these
29:32candlesticks work. And it doesn't always
29:33have to be this exact movement.
29:35Sometimes price does do that. But of
29:37course, you know, if it was perfect like
29:38that every time, day trading would be
29:40extremely easy to be able to predict.
29:42But sometimes, you know, the car's
29:43journey can look something like this. It
29:45can look a little bit uglier, right?
29:47Where where it can look something like
29:48this. Maybe we start off here. Say we
29:50start going up a little bit. We start
29:52going up. All right. I don't know what
29:53happened to this car. Start going start
29:55going up though. And then it's like,
29:56okay, I'm going to go all the way back
29:57down. And then it's like, I'm going to
29:58go all the way back up now. And then
29:59sometimes the wicks can be like really
30:01small too and then it can close really
30:04close to the opening price and the wicks
30:05can be like a little small like this and
30:07then you know this is the highest point
30:08and then it closed right here you know.
30:09So sometimes it looks like this.
30:10Sometimes there's candles without even
30:12wicks and this is sometimes this is
30:14called like a devil's mark. We'll get
30:16into this later but this is also a
30:17possibility. So it doesn't always have
30:19to be a wick but like the most common
30:20candle looks something like this right
30:22but it's not always perfect but it's
30:24just always good to know that this is
30:25the lowest point which price has been.
30:27This is the highest point in which price
30:28has been. And now I will show you guys
30:30what this looks like on an actual chart
30:32and you can start looking at it through
30:33different time frames which is going to
30:35be really important because candlestick
30:36is what makes up these different time
30:38frames. Right? So let's get into that
30:40right now. All right. So back to the
30:41candlestick on a real chart. You will
30:43see that guys on the top here we have
30:45all these different time frames. 1
30:46minute 2 minute 3 minute 4 minute 5
30:48minute 6 minute 7 minute 8 minute 9
30:50minute 10 minute 15 minute 30 minute 1
30:52hour 2 hour 4 hour daily weekly monthly.
30:55Oh my god. It keeps going up and up and
30:56up. We can look here on the monthly time
30:58frame. You might be like, Blake, what is
31:00all this stuff even mean? I am just
31:02completely lost here. Well, let's show
31:03you. Okay, if we hop on the monthly time
31:06frame here, right? And let's just delete
31:08this cuz we don't need this right now.
31:09The monthly time frame represents where
31:12price has moved in the given month. As
31:14you see here, we are currently in the
31:15month of January, right? So, the month
31:17of January has currently opened here and
31:19it's currently right here. It hasn't
31:21closed yet, right? But this is currently
31:22where it's been. It's January 3rd as I'm
31:24recording this. So, we currently have 27
31:26more days in the month of January for
31:28this candle to close and it could go
31:30back up here. It could flip bullish or
31:32it could continue lower. It could be
31:33bearish. We don't know yet, right? But
31:34if we look at, for example, this candle
31:36right here, the candle of December,
31:38which was the month right before this,
31:39you can see that we had a bearish month.
31:41Why? Because the closure of price was
31:44below the opening price, right? So, as
31:46you can see here, price opened right
31:48here. We had the opening price right
31:50here. And then this is the highest point
31:52in which price has been right here. This
31:54is then the lowest point in which price
31:57has been. And then this is where price
31:58closed. Would you look at that? Right.
32:00So really nice. You can see this. And we
32:02can now start zooming in to let's say
32:04the weekly time frame. Right. If we look
32:06on the weekly time frame. Where did
32:08price open? Well, it opened right here.
32:10Right. Where was the highest point which
32:11price has been? Right here. Right here.
32:13As you can see, where was the lowest
32:14point? Right here. And where was the
32:16close? Right there. Right. So you can
32:18zoom in and in and in and in. And you
32:20can start like seeing what makes up
32:22these candles. like what is making up a
32:25monthly candle, what is making up a
32:26weekly candle and you can keep zooming
32:28in and in you can see where the closures
32:30of price were. If we can go on the daily
32:31time frame here, right? This day of
32:33January 2nd on Friday, this was the
32:35whole entire price action of January. We
32:37moved a lot on January 2nd, Friday,
32:39right? This is the highest point in
32:41which price has been. This was the
32:42lowest point in which price has been.
32:44Then this is the opening price and then
32:46this was the closing price, right? And
32:48we can just zoom in here now. We can go
32:49into maybe like the 1 hour time frame,
32:51right? And we could see that the opening
32:53price was right here. And every opening
32:55price is going to start, guys, on the 6
32:57p.m., right? So that's like the opening
32:58price for now, at least because we have
33:00like I mean 24-hour trading coming up
33:01soon, but no, but like right now like
33:03the opening price and it's always going
33:04to be this. The opening price is going
33:05to be at 6 p.m. Eastern time and then
33:07the closing price there, right? So we
33:08have the opening price here. This is
33:10your true day open as people like to
33:12call it. You have your true day open.
33:13Then we open up. We rally up. This is
33:15the highest point in which price has
33:16been. This is then the lowest point
33:18which price has been. And then this is
33:19the close. Um, and this is your daily
33:21candle as you can see, right? And then
33:23we go on like the 1 hour and then the
33:24close was here, right? So this made up
33:26the whole entire day of price action,
33:28right? This is all the price action in
33:30the given day, right? All of this. This
33:31is the lowest point and this the highest
33:33point. We can just mark out like the
33:34daily high and low of this candle. And
33:36as you can see here, that's what it is,
33:38right? And we can keep zooming in.
33:39Again, price is fractal like I was just
33:41telling you guys. So it's happening on
33:43the daily time frame. You can zoom in
33:44and it's happening on the hourly. What's
33:46happening on the hourly is happening on
33:48the 15-minute, right? And we can keep
33:49zooming in and in. And you know, you can
33:51look at, for example, let's just look at
33:53this one 15-minute candle right here.
33:56Right? We can look at this one 15-minute
33:57candle. I want us to be paying attention
33:59to this candle right here on the
34:0015-minute time frame. Okay? We can see
34:02that this beautiful candle right here.
34:04We have an opening price where right
34:06here, right? Price opened here and it
34:08closed here. And then that is what the
34:09bodies do, right? It tells you where
34:11price has opened and closed. And then
34:12the wicks tell you where price has been,
34:14right? And then this is the high and
34:16then this is the lowest point in which
34:17price has been. This is the 50-minute
34:18candle. So, we can zoom into let's say
34:20like the 1 minute and we can see where
34:22price has been on the 1 minute time
34:24frame within these 15 minutes. Right?
34:25So, within the minutes of 10:45 all the
34:28way to 11:00, those 15 minutes of price,
34:31this is what it did. And you can see
34:32that that is what's represented on this
34:35minute time frame on this 15-minute
34:36chart right here. This is the movement
34:37of price from 10:45 to 11. And then you
34:40have a new movement of price on 11:00 to
34:43what? 11:15, right? So on and so forth.
34:45All right? So, so on and so forth.
34:47That's a cool wording there. But yeah,
34:48you can keep like zooming in like the
34:50one minute. You can zoom into here and
34:52see what price has done on the 30
34:54secondond time frame. You can keep going
34:55in and in and in. And yeah, it's really
34:57really cool. Um, but this is super
34:58necessary for you guys to just
35:00understand like the basic movement of
35:02price. I know it's not that cool and
35:04interesting and it's like well how do I
35:05make money off this? It it actually is
35:07going to apply to a lot of concepts
35:08future um in the future and later on.
35:10You will need to know about the openings
35:12of price and the openings of
35:14candlesticks. It is really really
35:16important when it comes down to
35:17strategies because you can see you know
35:19for example if we have a higher time
35:20frame candle looking like this where we
35:22have an opening price and we've traded
35:24higher and we've you know hit a key
35:26level or something and we start trading
35:27lower and we start going lower towards
35:29you know areas like this. I know this is
35:30getting like a little bit complicated
35:32but you can already start seeing that
35:33what is this candle most likely going to
35:35be? It's going to be a red candle most
35:37likely right because it's what an open
35:39high low close. So an open high low
35:42close, right? If we can just start
35:43writing these concepts out, right? Open
35:45high low close is what makes up a red
35:48candlestick. So let's change this from
35:50green to red. But an open high, low,
35:52close. What makes up a red candlestick
35:53or an OLC is what you'll often hear and
35:56you often see. OLC and then a green
35:59candlestick, right? Green candlestick or
36:02open, low, high, close is what makes up
36:05a green candlestick. And this is an OHC,
36:08right? open, low, high, close. OHLC,
36:11open, high, low, close. Right? And this
36:13is a green candlestick. And you can
36:15start predicting kind of these like
36:16higher time for moves, which I'm not
36:18going to get into now, right? It is a
36:19little bit complicated, but you can see
36:20like an open low. And if you see price,
36:22let's say, as open on the new hourly
36:24candle or the new 4hour candle that
36:26happens at, you know, 6:00 a.m. that
36:27happens at 10:00 a.m. every 4 hour
36:29increments and we start trading lower
36:31and then we start trading higher. What
36:32can you assume? It's probably going to
36:33be a green candlestick. And that's how
36:35you can get your bias and you can start
36:36assuming, okay, we're probably going to
36:37close bullish candle. We're probably
36:38going to have a bullish close. So
36:40trading alongside these trends, trading
36:42alongside the higher time frame candles
36:44is really, really important. You can
36:46start seeing, you know, price again is
36:47fractal. So there's constant
36:49manipulation happening. There's constant
36:51distribution happening on all these
36:52candlesticks. And again, we'll get into
36:54all these soon. But it's really good
36:55that you guys just simply understand
36:57these concepts now and understand, you
36:59know, what makes up a candlestick. and
37:01then we can start moving on to better
37:03and cooler concepts from here. So, just
37:05a quick recap of everything I've covered
37:07and everything that you guys need to
37:09know about candlesticks, right? You can
37:11see that if you go on these different
37:12time frames, if you go on the daily,
37:14that represents one day worth of price
37:16action. So, for example, I'm on the
37:17daily here, we have Friday, January 2nd.
37:20What's the day before that? Thursday,
37:21January 1st, or sorry, December 1st. Day
37:24before that, uh Tuesday, December 30th.
37:26Day before that, Friday, December 26th,
37:29right? And so forth and so forth. If you
37:30go on the 4 hour, well then you're going
37:31to see candlesticks within 4 hour
37:33increments. So 10:00 a.m. We then have
37:36what? 6 a.m. We then have what? 2 a.m.
37:38And then what? 1000 p.m. 6 p.m. 2 p.m.
37:40All these different time frames. You go
37:42on the hourly and then what are you
37:43going to see? You know these
37:44candlesticks on the hourly time frame,
37:46right? We see what is this 10:00 a.m.
37:489:00 a.m. 8 a.m. 7 a.m. 6 5 4 3 2 1 All
37:52these different time frames, right? So
37:53that's what a candlestick represents. We
37:55also know that if the candle has closed
37:57below the opening price, then that is
37:59going to create a bearish candle. And
38:00then if the candles have closed above
38:02the opening price, that is going to
38:03create a bullish candle. So let's see
38:05here. This is a bearish candle. What
38:07does this mean? That the candle has
38:08closed below the opening price. And it
38:10is showing a lot of selling pressure,
38:12right? And as you can see here, we have
38:13an opening price. Here we have a closing
38:14price right here. We have the extreme
38:17low. This is the lowest point in which
38:18price has been. Didn't close there
38:20though. It closed there. And then we
38:21have the extreme high. This is the
38:22highest point in which price has been.
38:24Right? And if we can zoom down now to
38:25like the 5minut time frame, you can see
38:27within this hour from 10:00 a.m. all the
38:29way up to 11:00 a.m. This is what price
38:31action has done. It opened here. This is
38:33the highest point it went. It traded all
38:35the way down here and then it closed
38:37here. Right? And this is also a really
38:38strong sign of a lot of selling pressure
38:40here because you can see here we closed
38:42really close to the external low. Right?
38:43So this is just what you guys should be
38:45marking out. You should start looking at
38:46this on your own. Right? So start seeing
38:48where's the opening price, where's the
38:50closing price. You can also start
38:52seeing, for example, let's just look at
38:53a bullish candle. What makes up a
38:55bullish candle? All right, let's look
38:56right here. We have, let's say, let's
38:58look at this green candlestick right
39:00here, right? We have an opening price
39:01right here. And then we have a closing
39:03price right here, which is what the
39:04bodies tell you. And then the wicks tell
39:06you how far price has been. This is the
39:08lowest point which price has been in
39:09this hourly candle. This is the highest
39:11point which price has been in this
39:13hourly candle from 9:00 a.m. to 10:00
39:14a.m., right? Then we look, let's say on
39:16the let's look at the 1 minute time
39:17frame, right? We opened where? right
39:19here at 9:00 a.m. and then we closed
39:21where? Here at around 10:00 a.m. Right?
39:22So, if we just look at this candle,
39:24since the opening price was here and the
39:26closing price was here, what is this
39:27going to be? This is going to be a green
39:30candlestick. Right? This is what makes
39:31up a green candlestick. And then what is
39:34the wick's going to be? Well, the
39:35external where's the lowest point in
39:37which price has been right here. So, the
39:38wick is going to look like what? This.
39:40And then what is the other wick going to
39:42look like? Well, where's the highest
39:43point in price? Up here. So, this is
39:45what the candle is going to look like on
39:47the higher time frame. Right? If we just
39:48look at this on a line chart like this,
39:50bada bing, bada boom, this is what that
39:529:00 a.m. candle is going to look like.
39:53And then if we go on the 1 hour, what
39:55does it look like? Exactly that, right?
39:56Where we have this green candlestick
39:58that's like this. Okay, so that's just
39:59what I want you guys to start marking
40:00out. Start understanding what makes up a
40:02candlestick. And yeah, that's pretty
40:04much going to wrap it up for this
40:05segment on candlesticks. Let's move on
40:08to now what's really, really important
40:10and really fun to learn about, which is
40:12market structure. All right, so the next
40:14concept we're covering is market
40:15structure. Market structure is going to
40:17tell you how price is trending, whether
40:18it's in an uptrend or a downtrend or
40:20whether it's bullish or bearish. And
40:22this is really important because without
40:24market structure, you guys will have no
40:25idea how to place your entries.
40:27Everything is reverse engineered around
40:29your bias and around the higher time
40:31frame trend. So it's really important
40:32that you understand this concept. So
40:34let's get into it. So there's two
40:35different types of market structure in
40:37the market which is either bullish or
40:39there is bearish market structure. So
40:40bullish structure comes from a series of
40:43lows, highs, higher lows, and higher
40:45highs. Versus bearish market structure
40:47goes with a series of lower highs and
40:49lower lows. So as you can see here, we
40:51have a low that's in play. We then have
40:53a high. We then have a higher low and
40:56then we have a higher high that breaks
40:58through this previous high and then we
41:00continue breaking through that previous
41:02high creating higher highs and higher
41:04highs and this is a sign in bullish
41:07structure, right? versus bearish
41:09structure is a series of lower lows,
41:11right? Where we have a high that's put
41:12in place. We then have a low, we then
41:14have a lower high and then we have a
41:17lower low. This low that broke through
41:19this low. This is now the sign and the
41:21indication that we are in bare
41:23structure, right? Then we have the lower
41:24high. We have the lower low, lower high,
41:27lower low, and we keep breaking through
41:29those previous lows, making new lows.
41:31And this is just a sign of bearish
41:33structure, right? So yeah, there's not
41:34much else to that, but I'm going to go
41:36into now an actual chart example. so you
41:38guys can start understanding it. But
41:39make sure you guys just draw this out on
41:41your own so you start understanding and
41:42write out what makes up bullish
41:44structure and what makes up bear
41:45structure. All right, so we have this
41:46chart on my screen. And what's really
41:49really simple, what you guys can do also
41:51if you guys are confused about what
41:53structure we're in is you can also like
41:54look at it on a line chart. I find that
41:56a lot of people find it easier to just
41:58look at it on a line chart. You can see,
41:59you know, your lows, your highs, your
42:01lower lows, or your higher lows, right?
42:02But it's also nice to just mark these
42:04out on your candlesticks because this is
42:05what we're going to be working with,
42:07right? So just simply looking at a chart
42:09like this right we are on the 5minut
42:11time frame here on NQ what structure is
42:14this from this level right here to this
42:17level right here is this bearish or is
42:19this bullish what would you guys say if
42:21you guessed bullish then you are correct
42:24right remember that bullish is green and
42:26it's an indication of an uptrend and
42:28it's an indication of price going up so
42:30this is an example of bullish price
42:32action why well if we look at the
42:33definition of what's bullish structure
42:35it's what a low we then have a high, we
42:37then have a higher low and then we have
42:39that higher high that gets put in place.
42:41So, if we look at the structure right
42:42here, what is showing us the structure,
42:44right? We have a low, right? So, we can
42:46mark this out. We have a low that's in
42:47play. We then have what? A swing high
42:49that's put in play. Pretty obvious
42:50swing. And then what do we have? We have
42:52a higher low and then what do we make? A
42:54higher high that goes through that
42:56previous high. And then we have what?
42:58Higher low, right? So, higher high.
43:00Higher low right here, right? Higher
43:02low. And then what do we do? Higher
43:03high. And then what do we do? Higher
43:05low, right? Boom. higher low and I'm
43:07marked out low wrong, but you can see
43:08we're just creating higher highs and
43:10higher lows when we are trading on in an
43:13uptrend. It'll be easier just to like
43:14circle these out. But as you can see, we
43:16have a low, we have the high, we then
43:18have the higher low, higher high, higher
43:20low, higher high, higher low, higher
43:22high, higher low, higher high, higher
43:25low, higher high, higher low. And we are
43:27continuously making new highs and we are
43:29continuously going up. Like this is a
43:32clear uptrend. This is a sign of bullish
43:34narrative and bullish price action. So
43:36now here's another area on the chart
43:38that I want you guys to be looking at,
43:39right? I want you guys to pay attention
43:41from this area right here to all the way
43:44to this area right here. Okay, this is
43:46this chart on the 5minute time frame. Is
43:49this bullish structure or bearish
43:51structure? If you have a brain, you said
43:53bearish structure, right? Why is this
43:55bearish structure? Well, if we look at
43:56what the definition of bearish structure
43:58is, what is it? Well, we have a high. We
44:01then have a low. We then have a lower
44:03high and then a lower low. So a series
44:06of lower highs and lower lows, right?
44:08And if we look at this chart here, what
44:09do we have? Well, we have a high that
44:11gets put in place. We then have a swing
44:13low. We then have a high. We then have
44:16what? A lower low. A low that breaks
44:18through this low right here. And then
44:20what do we have? A lower high. Right?
44:22This high is lower than this high. And
44:24then we have another low that's lower
44:25than this low right here. And then we
44:27have another high. We have a low, high,
44:29low, high, low. and a series of lower
44:32lows. And these lows continuously keep
44:34breaking through these previous lows.
44:36And it just keeps happening over and
44:37over. Whenever we break through that
44:39low, this is still a series of lower
44:41lows. We are still breaking through
44:42this. So this is an indication of
44:44bearish structure, right? Very very
44:46obvious bearish structure because it's a
44:48series of again lower lows getting
44:50created. And if you just look at this on
44:52a line chart, right? And if we just zoom
44:53out here, we just look at this on a line
44:55chart. This is just a very obvious
44:56indication of bare structure. Price is
44:58going down here in a downtrend, right?
45:01So, it's really good that you guys just
45:02start marking these out. I want you guys
45:03to mark this out on your own. Mark out
45:05what's bearish structure looking like,
45:06what's bullish structure looking like.
45:08Go on the 5minut time frame. Go on the
45:0915-minut time frame. Go on, you know,
45:11the hourly, the 4 hour. We Let's do this
45:13for example on the hourly time frame.
45:15Okay, let's look at the hourly time
45:16frame. Let's delete all these drawings
45:18and let's just look to an area. I mean,
45:20let's say like right right here, right?
45:22From this area to this area right here.
45:24from this low to this high. What is the
45:27structure we're seeing? Well, we have a
45:28low. We then have a high. We then have a
45:31higher low and then we have a higher
45:33high. Right? So, this is a series of
45:34bullish structure because we have a high
45:36that broke through that previous high
45:37and then we have another high that gets
45:39put in play that keeps breaking through
45:40that previous high, more lows and then
45:42higher highs and higher high. And this
45:43is just that sign of bullish structure.
45:45Now, it's really really important that
45:47you guys understand what makes up
45:48bullish structure and what you know if
45:50we're in bearish structure or bullish
45:51structure on the higher time frame
45:53mainly because I want you guys to know
45:55this because you need to be trading
45:56alongside the higher time frame trend
45:59when you are looking for your actual
46:00entries, right? So, we'll get down to
46:01the actual entry models later on, but
46:03it's important to note that without
46:05knowing the trend, your entry model
46:07really doesn't mean anything. Every
46:08single time I'm taking a trade in the
46:10live markets using my entry model, the
46:12first thing I'm doing before looking at
46:14my entry model is whether or not we are
46:16in a bullish market structure or bearish
46:18market structure on the higher time
46:19frame. From there, I'm then reverse
46:21engineering my trades around that idea.
46:24Right? So, let's say that we are looking
46:26really bearish on the 4 hour, on the
46:28daily, on the hourly time frame. So,
46:30what am I going to do then if we are
46:31super super bullish? Well, I'm probably
46:33going to be looking for longs versus if
46:36I'm super bearish on the lower time
46:37frames or sorry, the higher time frames.
46:39So, what am I going to be looking for?
46:40Probably shorts, right? And I'm always
46:42trying to be alongside that trend. And
46:44it's really important that you guys are
46:46doing the same. Okay, just so you guys
46:47know that. So, you guys know what market
46:48structure is now, right? You know what
46:50bullish structure is and you know what
46:51bearish structure is. But I know the
46:52question that you're asking is, Blake,
46:54how do you know when structure has
46:56changed? How do you know when it's
46:57bullish and then it's going to turn
46:59bearish? Or how do you know when it's
47:00bearish and then now it's bullish? Well,
47:02this is something called a market
47:04structure shift. And it's going to be
47:05the next concept that I'm going to teach
47:07you. So, a market structure shift or an
47:10MSS is what you'll commonly see it
47:12being, you know, referred to as is when
47:14we have a change in character. We have a
47:16change in structure from either bullish
47:18to bearish or bearish to bullish, right?
47:20So, let's say we are in an uptrend,
47:21right? Where we continuously making
47:23higher highs and higher lows. We have a
47:26market structure shift when we get a
47:27body closure through the last candle
47:31right here, the last higher low. Right?
47:33So once we have a body closure below
47:36that last higher low, that is an
47:38indication of a market structure shift.
47:40So as you can see here, right, we have a
47:42low that's put in place. We have a high.
47:44We then have a higher low, higher high,
47:46higher low, higher high, higher low,
47:49higher high. We then get a massive
47:51closure below this last higher low. Once
47:54we get that, we have a market structure
47:56shift. We have a change in delivery
47:58here. And now this is an indication that
48:00price is on the start of a downtrend,
48:03right? And we are now making lower lows
48:05once we get that closure below that last
48:07low. Now, what is an indication of a
48:10bullish market structure shift? Well, if
48:12we are in a continuous downtrend, where
48:13are we making highs, lows, lower highs,
48:16lower lows, lower highs, lower lows,
48:18right? And we keep doing this and we
48:20keep doing this. We then if we get a
48:22closure below the last lower high that
48:25is an indication of a market structure
48:27shift. So once we get a closure below
48:29that last high that's an indication of
48:31market structure shift to the upside in
48:33a bullish market structure shift. And
48:34you can see that price is now delivering
48:36up and we are now in the start of an
48:38uptrend. Right? So it's just when we get
48:40a closure above that last low or above
48:42that last high. Right? So it's really
48:44important that you understand that this
48:45is what a market structure shift looks
48:47like. And now I'm going to show you guys
48:48what this looks like on an actual chart.
48:50So I want you guys to take a look at
48:52this chart right here. You can clearly
48:54see that we are in bullish structure.
48:56Why is that? Well, we are clearly
48:57continuously making new highs. And we
48:59are making higher highs, higher lows,
49:01right? We have a low, we have a high, we
49:03have a higher low, higher high, and we
49:05are continuously just breaking through
49:07these previous highs, breaking through
49:08that high. We are breaking through that
49:10higher. And we are making new highs and
49:11highs and highs and we are going up,
49:13right? Just simply going up. Now, we
49:15have a market structure shift on the
49:175minute time frame. And I'll show you
49:18guys where that is in this candle right
49:20here. So, we have a very strong
49:22displacing candle through this last low
49:25that was put in place right here. And
49:27this is an indication of a market
49:29structure shift, right? We can mark this
49:30out with an MSS. And this is a clear
49:33indication that we have now shifted
49:35structure, right? From instead we are
49:37making new highs, right? We're
49:38continuously making new highs and higher
49:41lows, higher lows, higher lows. This
49:43time we do not make a higher low. We
49:45actually close below that previous
49:47higher low and we have a market
49:49structure shift. Right? So this is a
49:51really really strong displacing candle
49:53through this. Clearly you are seeing a
49:54lot of selling pressure here and you now
49:57see that we start shifting structure to
49:59the downside. Right? And you see that we
50:00start trending lower and lower and lower
50:03and we are just continuously going down.
50:05Right? So that is an indication of a
50:06market structure shift. We get a very
50:08strong closure below that last candle
50:11right there. that last down close candle
50:13right there, that last higher low right
50:15there. Now, from that initial dump,
50:17right, we obviously started getting a
50:19lot of selling pressure, right? We
50:20started making a lot of lower lows,
50:22lower lows, lower highs, lower lows,
50:25lower highs, lower lows, and we just
50:27kept going down and down and down. Now,
50:29how do you know that we are going to
50:31start now an uptrend, right? Since we
50:33are clearly bearish, you want to be
50:34shorting during this time. How do you
50:36know that we are going to start going
50:37back up? Well, there's other things that
50:39we could be looking at like liquidity,
50:40which we'll get into uh with the next
50:42concept or in about two concepts, I
50:44think. So, we'll get into that in a
50:45second here, and you can start looking
50:46at like liquidity sweeps and all that
50:47stuff. But, if we're simply just looking
50:49at structure on the chart, we want to be
50:51looking at those previous highs that are
50:53getting put in place and whether or not
50:54we are breaking through them with strong
50:56displacing candles. What displacement
50:58means, guys, is basically just like a
51:00very strong move. As you can see, this
51:01is a very strong displacing candle,
51:03right? It's it's a lot of volume, right?
51:05It's different from all these other
51:06candles. doesn't, you know, show much
51:08momentum, much movement, but versus this
51:11one, a lot of movement, a lot of
51:13displacement, right? That's just the
51:14simple way of putting it. A lot of
51:16movement here. That initial market
51:17structure shift had a lot of movement,
51:19right? Um, so that's what you're wanting
51:21to look for through that last high. And
51:23we can just keep marking out these
51:24highs. And we see here we have this high
51:26here. We have a high that's in play
51:28here. And we're just continuously again
51:29making lower lows, lower highs. And what
51:32do we get here? Well, boom. We get a
51:34market structure shift actually right
51:35here, right? because we get a body
51:37closure above that last lower high,
51:40right? So, we get a market structure
51:41shift right here. And as you can see
51:43here, and you can even wait for more
51:45confirmation through more highs. But
51:47this is that initial market structure
51:48shift since we're getting a lot of
51:50displacement through this, a lot of up
51:51close candles. And as you can see here,
51:53we just got even more displacement and
51:55more displacement. And we have now
51:57shifted trends, right? We are now
51:59breaking through previous highs, right?
52:01So, since we are breaking through
52:02previous highs, breaking through
52:04previous highs and what are we doing? We
52:05are creating what? We have a low. We
52:07have highs, higher lows and higher
52:09highs. We are putting in higher highs,
52:11right? So since we are putting in higher
52:13highs, we've now shifted structure to
52:14the upside and we now see that market
52:16structure shift in play. As you can see
52:18here, we are continuously going up and
52:20we are trading up. Now there are times
52:22of course where we can have fake market
52:24structure shifts and these things are
52:25called liquidity sweeps, right? And it's
52:27not all the time that just because we
52:29break through this that this is an
52:31indication of market structure shifts,
52:32right? You might be asking yourself
52:33like, Blake, well, we closed through
52:34this previous low here. It's not always
52:36the case, right? You want to be looking
52:38at other things. We're going to start
52:39implementing more things like key levels
52:41and liquidity sweeps and all that stuff.
52:43So, you can actually get a sense on
52:44what's a true market structure shift
52:46versus a fake market structure shift.
52:48But you will often times see these fake
52:49market structure shifts and people will
52:51act like, oh my god, this is going to
52:52continuously going down, but it actually
52:54keeps going up, right? Which is why it's
52:55important to also pay attention to
52:57things like what higher time frame, are
52:58we bullish or bearish? So, it's really
53:00important to be looking at all time
53:01frames and uh the whole entire picture
53:03of things before making that, you know,
53:05initial decision on whether or not we're
53:07going to be bullish or bearish or having
53:08that market structure shift. All right,
53:10so that's pretty much going to cover
53:11market structure. We understand now
53:13hopefully what market structure is. We
53:15understand what makes up a bullish
53:17market structure, bullish market
53:19structure, what makes up bearish market
53:20structure, right? And I want you guys to
53:22also just start marking this out on your
53:24chart. Look at what makes up bullish
53:26market structure. started writing it out
53:28like oh if we look at put on the 4hour
53:30time frame here if we're looking right
53:32here this looks like bullish market
53:33structure and then what do we get a
53:35bearish market structure shift right
53:36here right here right so start marking
53:38out things like this um what I just
53:40showed you as you can see here we get a
53:42bullish market structure shift right
53:43here we get a closure above this
53:45previously what were we in we were in a
53:47downtrend right and then we get that
53:48bullish market structure shift and then
53:50we start shifting trend to the upside
53:52and just start marking this out on your
53:54chart guys it's really really important
53:55that you mark this out One other thing
53:57that I want you guys to note is a market
54:00structure shift is really really
54:01important about the body. So the
54:03definition always matters with market
54:05structure shift because this is actually
54:07and I marked this out wrong. So my
54:09apologies for this but this is actually
54:10not a market structure shift. Can anyone
54:12tell me why this right here is not yet a
54:15market structure shift? If you're
54:16listening, it's because the body didn't
54:18close above this. We ended up wicking
54:20it. So oftent times this is usually a
54:22sign of a fake market structure shift.
54:24It didn't happen here in this scenario.
54:26We did end up continuing up, but this is
54:28an example of a fake market structure
54:30shift. And it's not a true market
54:31structure shift until we get a body
54:33closure above this wick. So until we get
54:35a body closure, you got to wait for that
54:37bullish body closure. Once we get that,
54:39boom, then there is your market
54:40structure shift. You have to be patient
54:42and wait for that. It's just really
54:43really important that you guys wait for
54:45that because often times, let me just
54:46find an example here. For example, here
54:48we have this previous lower high right
54:50in this downtrend. And you might think
54:52to yourself, well, if we close above
54:53this and we'll get a market structure
54:54shift. And as you can see, what do we
54:56do? You might think, oh, bullish market
54:58structure shift, right? We traded above
55:00this high. So, it's really important
55:01that you guys remember that you need a
55:03body closure instead of just a candle
55:06going through it, right? It's really
55:08important you understand that. All
55:09right, so that's pretty much going to
55:10wrap it up for market structure. You
55:11guys understand now what's bullish
55:13structure, what's bearish market
55:14structure, and what makes up a bullish
55:16market structure shift, what makes up a
55:17bearish market structure shift. All
55:18right, please again mark this out on
55:20your charts. Start looking throughout
55:21all the different time frames. It's also
55:23really important guys what I was saying
55:24at the start with you know trading with
55:26the higher time frame trend. It's really
55:27important that you understand that for
55:29example you might see bearish market
55:30structure on the lower time frame and
55:33bullish structure on the higher time
55:34frame. What that simply is is just
55:36manipulation. So I'm actually just going
55:38to go back on my charts right now. It's
55:40important that you see that this is just
55:42pure manipulation. And if price is going
55:45up if we are in a higher time frame
55:47downtrend on the lower time frame you
55:49see price is going up. What is that most
55:50likely manipulation to then go lower?
55:52Vice versa, right? If we are going down
55:55on the on the lower time frame and price
55:57is moving up on the higher time frame,
55:59what does that most likely mean?
56:00Manipulation. So, this is simply a
56:02shorting opportunity, right? If you see
56:04prices going up on the lower time frame,
56:06this is simply going to be a shorting
56:08opportunity, right? Not ride along this
56:10just because you see price going up on
56:11the lower time frame, right? So, it's
56:12really important again match and always
56:14be on side that higher time frame bias
56:17so you can catch those banger shorts to
56:19the downside. All right, so that's what
56:20I want you guys to know. But yeah,
56:21that's pretty much again going to wrap
56:22it up for this concept on market
56:24structure. And I'll see you guys in the
56:26next concept, which is going to be
56:28liquidity. All right, guys. So, concept
56:30number three that we are going to be
56:31covering is liquidity. There are two
56:33different types of liquidity pools, buy
56:34side liquidity and sellside liquidity.
56:36And it's really important to know what
56:38liquidity is so you guys can avoid
56:40getting stopped out and manipulated and
56:42stop hunted. Us ICD traders, we need to
56:44be trading like smart money does. We
56:46need to be onside that trend. So knowing
56:48where orders are resting on the chart is
56:51really, really important. Again, not
56:53only to not get stopped out of trades,
56:55but also to target that money. So let's
56:57hop on the chart and I'm going to show
56:58you what liquidity means, how to spot
57:00it, and how to actually trade it. All
57:01right, so concept number three again,
57:03guys, is liquidity. So liquidity is
57:06resting at swing highs and swing lows.
57:09Now what exactly is liquidity? Liquidity
57:11is just simply an area of price where a
57:15lot of orders are resting at. And what
57:17the big money traders are doing is they
57:19are targeting this liquidity and they
57:21are getting liquidity grabbed. So they
57:23are grabbing all of this cash and this
57:25is essentially just fuel for the next
57:27move. And once they grab that cash then
57:28they can move the market in the area
57:30that they want. So again, us as traders,
57:32we do not want to be liquidity, but we
57:34want to be trading alongside that trend,
57:37right? So let me just show you guys, you
57:39know, what makes up swing highs and
57:40swing lows because this is really,
57:41really, really important. So what makes
57:43up a swing high and a swing low? It's
57:45just basically a three candle pattern,
57:47right? Where we have a lower high, we
57:49have a high, and then we have another
57:51lower high, right? So this is a lower
57:54high, and then we have another lower
57:56high, and then we have the actual swing
57:58high put in place, right? So it's a
57:59lower high and then a higher high and
58:00then a lower high. And then what makes
58:02up a swing low is pretty much the same
58:04thing just opposite right where we have
58:05a lower low or sorry you have a low
58:07lower low and then a another low right
58:10so we have a low lower low. So this is
58:12just that three candle pattern formation
58:15and this is where a lot of orders are
58:17actually resting. You might be asking
58:18yourself like Blake why are a lot of
58:20orders resting there? Well, if we just
58:22look at this logically, right, when we
58:23see this candle pattern formation,
58:25right, what are 90% of traders going to
58:28be doing if they want to, let's say,
58:30take a short position from here, they're
58:32going to be put their putting their stop
58:33losses, and we already went over stop
58:35losses and everything, you know, in
58:36those previous in that previous lesson.
58:37But we can put our stop losses usually
58:39at this swing high and then we can put a
58:41target down here, right? If we're taking
58:42a short, right? So, your stop losses,
58:44you have buy stops. A lot of liquidity
58:47is resting here at this buy stop, right?
58:49If again you're in a short position, you
58:50have a buy stop and then you have a buy
58:52limit. So this is referred to as what?
58:54Buy side liquidity where a lot of buy
58:57stops are resting, right? So what the
58:59market makers will do is actually hunt
59:01this liquidity, take it out, grab that
59:04cash, boom, they grab all that cash and
59:06then they move the market in the area
59:07that they actually want to go, right? So
59:09this is referred to as liquidity sweep.
59:11When we sweep out those orders, and
59:13you'll often see that happen a lot, and
59:14it's the same thing here. What are 90%
59:16of traders doing if they want to go long
59:18in this scenario here, right? Let's say
59:20I want to go long. Well, I'm probably
59:21going to put my stop loss at that major
59:23swing low. And this is where a lot of
59:25traders are putting their stop losses.
59:27So, what's going to be here? A lot of
59:29sell stops, right? Because you're in a
59:31buy position. What do you have? You have
59:32a sell stop and you have a sell limit
59:34here to get you out and you have a sell
59:35stop down here. So, what is this is
59:37referred to as sellside liquidity?
59:39Because again, a lot of sell orders are
59:42resting here in the market. So, what is
59:44smart money going to do? What is that
59:46big money going to do? Well, they're
59:47going to go ahead and have a liquidity
59:48sweep, a liquidity raid on all these
59:51orders because there's so many orders
59:53resting here. Boom, sweep it out. And
59:54then they're going to move the market in
59:56the area that they want it to actually
59:57go. So, boom, everyone gets stopped out
59:59here and then they grab all those
1:00:01orders. They grab all that fuel and then
1:00:03that's just fuel for the next move for
1:00:05price to then move up, right? Or just
1:00:07move the market wherever they want to
1:00:08go, right? So, that's just called a
1:00:09liquidity sweep. And this is what
1:00:11liquidity actually is. So again, really
1:00:13important that you guys know that
1:00:14sellside liquidity and buy side
1:00:16liquidity and just these liquidity pools
1:00:17are resting within swing highs and swing
1:00:19lows. Oftent times see a lot of beginner
1:00:21traders also get tripped up over like
1:00:23the color of a swing high and a swing
1:00:26low. I want you guys to know that that
1:00:27literally doesn't matter. This could be
1:00:29a red candlestick. This could be a green
1:00:31candlestick. This could be a green
1:00:32candlestick here. It really doesn't
1:00:34matter. It's just the fact that there is
1:00:36a low. Then we have um another lower low
1:00:39or sorry the low above that another low
1:00:42above that and we have that lower low
1:00:43and we have a high and then we have the
1:00:45you know highs below that. That's just
1:00:46what makes up a swing high and a swing
1:00:48low. It is not about the candle colors
1:00:50that do not matter. Okay, so I want you
1:00:52guys to note that. But yeah, this is
1:00:53what liquidity is and now we can move on
1:00:55to actually marking it out on our
1:00:57charts. All right, so looking at this
1:00:58chart here guys, I'm going to start
1:01:00marking out major areas of buyside
1:01:02liquidity and sellside liquidity with
1:01:04you. Okay. So, I want you guys to be
1:01:06paying attention to especially with buy
1:01:08side and sellside liquidity to not
1:01:09really be marking out every single swing
1:01:11high and swing low. You see, because if
1:01:13we start doing that, right, you can see
1:01:14that there is a lot of swing highs and
1:01:16swing lows, right? There is a swing high
1:01:18resting right here. There's also a swing
1:01:20high resting here. There's also swing
1:01:22high resting here and here and here,
1:01:23right? And there's like a bunch on the
1:01:25chart. You're obviously going to get
1:01:26super overwhelmed. So, I want you to
1:01:28just like look at the range that we're
1:01:30currently in and look at what's the
1:01:32major liquidity resting here, right? Is
1:01:34it where's the major buy side and sell
1:01:36side? Well, just looking at this range,
1:01:38right? The major buy side to me that's
1:01:40sticking out like a sore thumb is right
1:01:42here. This buy side liquidity pool
1:01:43resting right here. And then what do we
1:01:45have? We have sellside liquidity resting
1:01:46right here at this external low. Right?
1:01:49So, you can start just looking at major
1:01:51ranges on like the 15-minut time frame
1:01:53and above. It's really good to be
1:01:54marking out your liquidity pools on that
1:01:5650-minut time frame and above. And then
1:01:57there's sellside liquidity resting right
1:01:59here, right? And then from there, we can
1:02:01zoom in a little bit more and be like,
1:02:03okay, where's more liquidity resting?
1:02:04Well, we also have liquidity resting
1:02:06here. We also have some liquidity
1:02:08resting, you know, all these lows,
1:02:09right? Why is this really good for
1:02:11sellside liquidity? Why is this a bunch
1:02:13of sellside liquidity, you may ask?
1:02:15Because there's a lot of swing lows
1:02:17here, right? So, what does this mean?
1:02:18There's a lot of sell stops, right?
1:02:20Where people are putting sell stops
1:02:21here. People are then putting sell stops
1:02:23here at this low. And then where else?
1:02:25Boom. At this low. And there's a lot of
1:02:28sell stops resting all along here that
1:02:30haven't also been taken. Right? So you
1:02:32can see here these sellside liquidity
1:02:34pools haven't been taken. Meaning their
1:02:35lows haven't been swept yet. Meaning
1:02:38that these are still valid sellside
1:02:39liquidity pools. Right? Is this still a
1:02:42valid like buyside liquidity pool to be
1:02:44now targeting now after? No. Because
1:02:46it's already been hit. Right? So that's
1:02:48something that I want you guys to know
1:02:49is as long as it hasn't been hit, it
1:02:51hasn't been, you know, traded through
1:02:52and above this low here hasn't been
1:02:54traded through. So it's still like a
1:02:56valid low to target versus, you know,
1:02:57this one, don't even mark it out, right?
1:02:59But as you can see here, we start
1:03:00trading and we hit that external buy
1:03:03side liquidity right there. Beautiful,
1:03:04right? We hit this and you can assume
1:03:06that because we have a lot of what
1:03:08sellside liquidity resting here,
1:03:10sellside, we have sell stops all resting
1:03:12right here, right? We can start
1:03:14targeting that if we get some strong
1:03:16displacement towards that, right? We
1:03:17ended up getting that buy side liquidity
1:03:19and then we ended up sweeping it out and
1:03:21going here. Now, what is you know a buy
1:03:23side liquidity sweep? What is a sellside
1:03:26liquidity sweep? Like I already
1:03:27explained it to you guys in the way that
1:03:29you know it's fuel for the next move.
1:03:30But why is this happening? Right? As ICT
1:03:33traders and you know as a trader in
1:03:34general, I love to understand the why
1:03:36behind my trading and this is really
1:03:38what it means. Right? So we have to
1:03:39think about it like this. The 99% of
1:03:41traders, what is the way that they are
1:03:43trading, right? They trade retail
1:03:45trading strategies, meaning they're
1:03:46trading support and resistance and
1:03:48they're trading breakouts, right? That's
1:03:50what 99% of traders trade. They trade by
1:03:52the books like that. That's what they
1:03:53teach you. So, what is support and
1:03:55resistance? Well, support and resistance
1:03:56is basically, you know, the term that if
1:03:58it happened once, it'll simply happen
1:04:00again, right? So since we had this huge
1:04:03move all the way over here, since that
1:04:05happened once we hit this area, if we
1:04:07hit this area again, the same thing will
1:04:09happen, right? So a lot of people are
1:04:12going to do what in this area? Well,
1:04:14they're going to take short positions
1:04:15cuz they see this as an area of
1:04:17resistance. So maybe they see us hit
1:04:19this area, right? And they'll be like,
1:04:21you know, I'm going to place a short
1:04:22position right here and put a stop loss
1:04:24right here and then put a TP wherever
1:04:26they want, right? And this is an example
1:04:28of a bearish support level, right, of
1:04:30resistance. So, as you can see here,
1:04:32there's a lot of orders already resting
1:04:34where at this buyside liquidity. Not
1:04:36only resting here from initial short
1:04:38positions, but also new short positions
1:04:39that are getting put in place. Then what
1:04:41else is getting put in place here? Well,
1:04:43there's also breakout traders entering
1:04:46into the market, right? So, not only are
1:04:48people getting stopped out here, a lot
1:04:50of people are entering into positions,
1:04:52right? So, the idea of breakout trading
1:04:55is that if we close above an area and if
1:04:57we continuously keep making new highs
1:04:59that we're going to keep going higher
1:05:00and it's this really objective way of
1:05:02trading. Maybe they'll put and they're
1:05:04going to probably put a stop loss where
1:05:05at this area right here, the swing low.
1:05:08So, there's sellside liquidity now
1:05:09resting right here as you can see,
1:05:11right? But as you can see here, we took
1:05:13out this buy side liquidity and people
1:05:15are now entering into the market. So, a
1:05:17liquidity sweep, not only again are
1:05:19people getting taken out by getting
1:05:20stopped out of their positions, right?
1:05:22They're grabbing money here, but they're
1:05:24actually going to be grabbing even more
1:05:26money soon because people are entering
1:05:27into long positions thinking this is a
1:05:30breakout when really, what is this just
1:05:32a liquidity sweep? And now the market
1:05:35makers are targeting all of this
1:05:37sellside liquidity, right? We have
1:05:38sellside liquidity resting where? Here
1:05:40we have sellside liquidity resting
1:05:41where? Here. Here. All of this. And the
1:05:44market makers are now going to target
1:05:45this, right? And you can see that we are
1:05:47targeting this. And what are we also
1:05:49doing in the meantime of this? What do
1:05:50we start doing? You can see that we
1:05:52start creating buyside liquidity. And
1:05:54boom, we take out even more buyside
1:05:56liquidity right here. Right? As you can
1:05:57see here, this is buyside liquidity. And
1:05:59then what is this? This is a new pool of
1:06:01sellside liquidity, right? More stop-
1:06:02losses are being put here. More stop
1:06:04losses are being put here. And what do
1:06:05we do? We have another liquidity run,
1:06:08right? Why is this another liquidity
1:06:09run? Well, a lot of people are doing
1:06:11what? They're shorting this area because
1:06:12again they think, "Oh, because we ended
1:06:14up, you know, dumping at this area right
1:06:17here, we're going to continue dumping
1:06:18here." So, they enter a short position,
1:06:20put a stop loss here, and then what do
1:06:21people do? Enter into shorts, and then
1:06:23get wrecked. And then what are other
1:06:25people doing? Well, let's say it goes
1:06:26up. Oh my god, it's going up. I'm going
1:06:28to enter into longs here because I'm
1:06:29going to think it keeps going up because
1:06:30we broke this previous high. I'm going
1:06:32to trade my breakout strategy. No, you
1:06:34are wrong. You are getting stopped out
1:06:36now. And now we can target what?
1:06:38Sellside liquidity pools resting where?
1:06:40Well, this is a swing low. This is
1:06:41another swing low. This is another major
1:06:43swing low. Right? Just start marking the
1:06:45major swing lows that you see. You know,
1:06:47of course, you can also mark out all
1:06:48these little swing lows. But you can
1:06:50just literally draw a line and you can
1:06:51see that all of this is also, what is
1:06:53this also called? Trend line liquidity.
1:06:55This is a really, really good concept.
1:06:57Trend line liquidity is just, you know,
1:06:59the fact that a lot of people trade
1:07:00trend lines, right? And you see a lot of
1:07:02people are putting stop losses where at
1:07:04the recent trend line, right? We can
1:07:05look at this line chart right here. Look
1:07:07at this. This is like, oh, everyone's
1:07:08like, oh, this is an uptrend. We're
1:07:10going to keep going up. What they don't
1:07:11understand is that uptrend is going to
1:07:12stop once we get that liquidity sweep
1:07:14and once we get that change in
1:07:15character, once we get that boom,
1:07:17displacement through all that, and then
1:07:19boom, we start the downtrend. And now we
1:07:21are starting to target what? All these
1:07:23sell stops right here. All these sell
1:07:24stops right here. And we target all of
1:07:26that. Really, really nice. And we keep
1:07:28going for those major lows. And we start
1:07:30approaching this area right here. Okay.
1:07:32So, I want to start marking out now new
1:07:35areas of sellside liquidity on my chart.
1:07:37new areas of buy side liquidity on my
1:07:38chart. Right? So, we have this area of
1:07:40sellside liquidity. Right? Now, what are
1:07:41my areas of buy side liquidity on my
1:07:43chart? Well, we have this level of buy
1:07:45side here. And let me just like zoom out
1:07:46like what's the most obvious? Obviously,
1:07:48this major high right here, right? This
1:07:50is an area of buyside liquidity. This is
1:07:52also an area of buyside liquidity. What
1:07:54else is buy liquidity? Well, we also
1:07:56have, you know, this high here that's
1:07:58pretty significant. This high here looks
1:07:59pretty significant. This high here looks
1:08:01pretty significant. These are all a
1:08:03bunch of major highs in the market,
1:08:04right? A lot of stop losses are going to
1:08:06be resting here. So, what are people
1:08:07most likely doing right now, right?
1:08:09Where they see this area approaching,
1:08:10right? They see, oh, this is a big
1:08:12support level, right? No, silly Timmy.
1:08:15This is not a support level. You're
1:08:16about to get cooked. Why? Because they
1:08:18see this and they're going to enter into
1:08:20some long positions, right? They're
1:08:21going to think, "Oh, again, just because
1:08:23we did this last time, we had this huge
1:08:24move up. We're going to go back down
1:08:26here and we're going to have another
1:08:27huge move up. So, I'm going to put my
1:08:28stop loss right here. I'm going to take
1:08:29this position right here." Boom. A lot
1:08:31of sell stops are being put at this low
1:08:33here. immediately when people start
1:08:35entering into positions around here. A
1:08:37lot a lot of stop losses are being put
1:08:38at this low. But what else is the retail
1:08:40traders doing? Well, they're going to
1:08:41enter into some breakout positions.
1:08:43What? Right? Why? Because oh, we broke
1:08:45through that previous low. I'm going to
1:08:46put my stop loss at this recent high.
1:08:48And then I'm going to put my TP wherever
1:08:50down here because we broke this recent
1:08:52low. Now, this is a sellside liquidity
1:08:54sweep. This is a sellside liquidity run.
1:08:57And now there are a lot of stop- losses
1:08:59not only resting here but a lot of
1:09:00people just got taken out of the markets
1:09:02and a lot of money and cash just got
1:09:05grabbed and this is fuel for now the
1:09:07market to go up and now there's
1:09:09liquidity resting where even more
1:09:10liquidity resting here here and it's
1:09:12just a constant cycle and this is what
1:09:14the market is constantly doing. We are
1:09:16constantly not only generating liquidity
1:09:18to the opposing directions, but we are
1:09:21also seeking out this liquidity to
1:09:23actually move the markets, right? And
1:09:25then we are taking it out, right? So
1:09:26that's just what the market is doing. It
1:09:28is seeking liquidity and it is targeting
1:09:30liquidity, right? Uh sorry, seeking
1:09:31liquidity and it is generating
1:09:33liquidity. That is what the market is
1:09:34doing. And then from here, as you can
1:09:36see, we start targeting all this buy
1:09:38side liquidity and we just have these
1:09:39beautiful, beautiful runs. And you can
1:09:42see we even have like internal little
1:09:44liquidity sweeps here. And we have an
1:09:45internal liquidity sweep where as you
1:09:47can see right here we have a low right
1:09:48here. What is this? Bada bing bada boom
1:09:50liquidity sweep fuel for the next move.
1:09:52And you'll see that happen on the lower
1:09:54time frames as well. And that is just in
1:09:56addition more fuel for the next move.
1:09:58And the market is constantly doing that,
1:10:00right? So it's really really cool to see
1:10:02and this is just how the market moves.
1:10:04So I want you guys as homework to go
1:10:06ahead and go on your own charts and
1:10:08start marking out your buy side
1:10:09liquidity. Start marking out your sell
1:10:11side liquidity and start marking out
1:10:12your sell side liquidity sweeps. your
1:10:14buy side liquidity sweeps and um yeah
1:10:16just looking at how the market is moving
1:10:18because the market is constantly doing
1:10:19these things constantly generating this
1:10:21liquidity and it's constantly seeking
1:10:23out this liquidity to actually move the
1:10:25market. So it's really really cool and
1:10:26um yeah guys just start marking this out
1:10:28because again this is how the market
1:10:29moves and this is the way we are going
1:10:31to be trading. All right so your guys'
1:10:32homework is to go on your charts and
1:10:34mark out the major buy side liquidity
1:10:36and the major sellside liquidity pools
1:10:38on your chart. Very very simple. just go
1:10:40on your chart and do that and see how
1:10:42price is reacting to those levels.
1:10:43That's pretty much going to wrap it up.
1:10:45We're going to get into another lesson
1:10:46on liquidity soon, but this is just like
1:10:48the basics of buy side and sell side
1:10:50liquidity. I want you guys to know that
1:10:51there are, you know, many different
1:10:53types of liquidity pools within the buy
1:10:55side and within the sell side liquidity
1:10:56pools like relative equal highs,
1:10:58relative equal lows, you know, new day
1:11:00opening gaps, things like that. But
1:11:01we'll get into that soon. Sounds like
1:11:03great things and I know it's very
1:11:05enticing, but just know the basics of
1:11:08liquidity first and then we're going to
1:11:09find out, you know, what those other
1:11:11things that I just said later on. Yeah,
1:11:13I'll see you guys in the next lesson and
1:11:14that's going to be on for Valley Gaps.
1:11:16All right, guys. For this lesson, we are
1:11:17going to be covering for value gaps.
1:11:18This is lesson number four in the
1:11:20course. This is really, really an
1:11:22important lesson, guys. This is pretty
1:11:24much the bulk of my whole entire
1:11:25strategy is for value gaps as well as
1:11:27liquidity as I mean, as well as market
1:11:29structure. Everything I'm teaching in
1:11:30these lessons, there's no fluff in it,
1:11:32right? This is everything that you guys
1:11:34need to know to become profitable.
1:11:36Nothing more, nothing less. So, please
1:11:38pay attention to this segment and let's
1:11:39get into fair value gaps. All right, so
1:11:41these are fair value gaps. What is a
1:11:44fair value gap? A fair value gap is
1:11:45simply an imbalance in price where the
1:11:48market moves so fast to one direction we
1:11:51create these imbalances. And let's just
1:11:53go over the definition, right? It's a
1:11:55three candle sequence. So if a rally gap
1:11:58is created from these three candles and
1:12:00it's where the wicks of candle one and
1:12:02three do not overlap. What does that
1:12:04mean? Well, if we're looking at a
1:12:06bearish rally gap in this sense here, we
1:12:08see that the the wicks of candles one
1:12:11does not overlap with the top wick of
1:12:14candle 3, right? If we look at these
1:12:15candles 1 2 3, you see that the bottom
1:12:18wick of candle 1 doesn't overlap with
1:12:20the top wick of candle 3. And it creates
1:12:23this gap in price, right? And you can
1:12:25see here and people like to draw it out
1:12:27with a rectangle. So you can get your
1:12:28rectangle tool right up here. You can
1:12:30click shapes rectangle and you can
1:12:32highlight that favorite that and you can
1:12:33see that we create a feral gap. Look at
1:12:36this. And this is a feral gap. Now again
1:12:38it's a gap because the wicks do not
1:12:40overlap. What would it look like if the
1:12:42wicks did overlap? Something like this.
1:12:44Is this a feral gap? No. Why? Because
1:12:46the wicks overlap. As you can see the
1:12:48bottom wick of candle 1 overlaps with
1:12:51the top wick of candle 3, right? and we
1:12:53get this overlapping a wick. So there's
1:12:55no for value gap here. However, when we
1:12:56get this here, there is that gap. You
1:12:58see it? And let's do the same thing for
1:13:00a bullish scenario here. Right? You see
1:13:02that this is a three candle pattern,
1:13:04right? Where we have the top wick of
1:13:06candle one doesn't overlap with the
1:13:08bottom wick of candle 3. And once we get
1:13:11that, you see that we create a gap in
1:13:13price and we have an imbalance in price.
1:13:15Right? This is just showing a lot of
1:13:17displacement towards one area. This is
1:13:19showing that we are probably heading for
1:13:22some buyside liquidity up here. If we're
1:13:24going down here, we're probably heading
1:13:25for some sort of sellside liquidity down
1:13:27here. We're showing large displacement.
1:13:29There's a large bullish move and this is
1:13:30a large bearish move. So, what fair
1:13:32value gaps do is it acts as a magnet in
1:13:36price where price tends to come back to
1:13:38these gaps, right? And you can draw it
1:13:40out like this. Price tends to come back
1:13:42to these gaps to fill this imbalance and
1:13:45then push price in the corresponding
1:13:47direction that it's going. That is
1:13:49typically what a fair value gap does as
1:13:51long as we are still heading for
1:13:53whatever buy side liquidity levels up
1:13:54there. As long as we still haven't hit
1:13:56our key levels, right? And then you can
1:13:57do the same thing here for a bearish
1:13:59sense. A bearish rally gap acts as an
1:14:01imbalance in price and it also acts as a
1:14:03magnet where we can trade up to these
1:14:05gaps, hit these gaps and we usually
1:14:07respect them and then we trade back in
1:14:09the corresponding direction. Now again
1:14:12with candles um the color of the candles
1:14:14do not matter. So this could be you know
1:14:16a red candle here. This could be three
1:14:18greens. Doesn't matter like really the
1:14:20candles. As long as it creates some sort
1:14:22of gap in price, that is all that
1:14:24matters. All right, guys. So, it's
1:14:25really important to note what makes a
1:14:27fair value gap respected versus
1:14:29disrespected, right? So, respected
1:14:32simply means that the wicks are holding
1:14:34the feral gap versus disrespected means
1:14:38that the candle's body has closed
1:14:41through and we are no longer holding the
1:14:43feral gap. So here's an example of the
1:14:45feral gap getting respected where we
1:14:47have wicked into it and the wicks are
1:14:49holding the feral gap. Now this doesn't
1:14:51mean that if we go like this then that
1:14:53means it's disrespected. This is still
1:14:55respected which is why you often hear
1:14:57the term that wicks do the damage and
1:14:59bodies tell the story. Right? You'll
1:15:01often see we can have large wicks
1:15:03through for valley gaps but the candle
1:15:05didn't close there. Right? It shows that
1:15:06the candle has been there and it might
1:15:08have looked like it was closing at the
1:15:09time and then we traded back up and we
1:15:11actually ended up respecting this gap.
1:15:13Right? So, it's always really important
1:15:14to wait for that candle closure. And
1:15:16that's my whole entire strategy is
1:15:18waiting for candle closures through
1:15:19inverses, which is what I'm going to
1:15:21honestly teach like right now because
1:15:22that's the majority of fair value gaps
1:15:25is whether or not it's getting respected
1:15:26or disrespected. So, when price respects
1:15:29these fair value gaps, you can typically
1:15:30assume that we are going to continue
1:15:32trading lower, especially if we still
1:15:34have lower sellside liquidity, for
1:15:36example, right? And if we end up
1:15:38respecting it to the upside, you can do
1:15:40the same thing. You can expect that
1:15:41price will keep trading in that
1:15:42corresponding direction. Right? Now what
1:15:45happens if we end up trading through the
1:15:47fali gap like this. Let's see. But let's
1:15:49say we have this fali gap. What does it
1:15:51mean when we end up disrespecting the
1:15:53gap? So we disrespect a gap when we end
1:15:56up closing through it. So it looks
1:15:58something like this. Boom. The second we
1:16:00close through this fal gap with the
1:16:02body. Remember how important the bodies
1:16:04are guys. If we end up again wicking it
1:16:06like this, this is still getting
1:16:07respected. It only means that we
1:16:09disrespect the gap. Once we get a body
1:16:11closure below the top wick or the first
1:16:14candle's wick in this sequence, right?
1:16:16So once we close below it, boom, you can
1:16:18assume that the fal gap has been
1:16:20disrespected. Okay? Um and there's fal
1:16:22gaps forming on every single time frame.
1:16:24So it's important to wait for that
1:16:25closure on that specific time frame. And
1:16:27I'll get into more into that in a bit.
1:16:29Um yeah, this is means now what you're
1:16:32probably going to see price trade in the
1:16:34opposing direction that the feric gap
1:16:36was made since it got disrespected. But
1:16:38what typically happens is again that the
1:16:40feric gap usually gets respected if we
1:16:42have you know very large displacement if
1:16:44the bias is still bullish for example.
1:16:46But if it's bearish and this gap gets
1:16:48created and it gets closed through
1:16:50what's most likely going to happen going
1:16:51to keep going lower right and same
1:16:52scenario here what would that look like?
1:16:54Well, if we just delete these drawings
1:16:56here, we see that this falic gap is
1:16:57currently getting respected because the
1:16:59wicks are still holding, right? Even if
1:17:01the body trades into this, you can see
1:17:03this. This is still holding. The feral
1:17:04gap here is still holding. The only time
1:17:06when the feral gap gets disrespected is
1:17:08when we trade through it like this. And
1:17:10we trade through it like this. Boom. We
1:17:11trade through it. And now we
1:17:13disrespected this gap. And what can you
1:17:15expect? You can expect price to keep
1:17:17trading up and up and up. All right. So,
1:17:18this is really important. I want you
1:17:20guys to start looking at what fair gaps
1:17:22are getting respected. Well, fair value
1:17:23gaps are getting disrespected. But
1:17:25typically what you will see is fair
1:17:26value gaps just get respected and we
1:17:28keep trading the corresponding direction
1:17:30and but the times where we do disrespect
1:17:32it we trade in the opposing direction.
1:17:34Right? So it's important to wait to see
1:17:36if we are respecting it if we are
1:17:37getting displacement back lower or back
1:17:39higher and wait for that confirmation
1:17:41through value apps. But I'm now show you
1:17:43guys some real chart examples so you
1:17:45understand this a little bit more. All
1:17:47right. So we're on the actual charts now
1:17:48and I'm going to start marking out fair
1:17:50value gaps. What is a fair rally gap?
1:17:52Again guys, it's that three candle
1:17:54pattern where the top wick and we're
1:17:56just going to look at some bullish gaps
1:17:57in this scenario where the top wick
1:17:59doesn't overlap with the third candle's
1:18:01bottom wick or in this case it can also
1:18:04be the body, right? It doesn't always
1:18:05have to be a wick. This is still a feral
1:18:08gap, guys, right? Because there's still
1:18:10an imbalance in price. So even if we
1:18:12don't have a wick, this can still create
1:18:14a fale gap. Okay? And as you can see, we
1:18:16end up trading into it. Price is still
1:18:18respecting this fale gap. Why? Because
1:18:21we have a bullish bias and because also
1:18:23the wicks are still holding. We don't
1:18:25get any bodies closing through. So this
1:18:27for value gap is getting respected. What
1:18:28do we see right here? We see a bearish
1:18:30for value gap. Ooh, is this one really
1:18:32going to matter though when we are in a
1:18:34you know really strong bullish bias
1:18:35here. These gaps are most likely going
1:18:37to get disrespected and what do we do?
1:18:39We end up closing through that. Right?
1:18:40Well, we have this scenario again guys
1:18:42where this gap is getting respected and
1:18:44this gap is also getting respected. And
1:18:46then once we get this gap to get
1:18:47disrespected, we can assume what to keep
1:18:49going higher, right? So we end up keep
1:18:51going higher because this got
1:18:52disrespected. And what do we do? We
1:18:54create more bullish falic gaps on the
1:18:56way up, right? We made this one right
1:18:58here. And question is this right here a
1:19:01feral gap? These three candles right
1:19:03here, candle 1, two, and three. Is this
1:19:05a feral gap from this candle here, this
1:19:07candle here, and this candle? Are these
1:19:08three make up a feral gap? No. Why?
1:19:11Because this third candle's bottom wick
1:19:13overlaps with the first candle's top
1:19:15wick. As you can see here, this is
1:19:17overlapping. We have an overlapping of
1:19:19wicks, right? Versus look at this
1:19:21candle's wick here and this candle's
1:19:23wick do not overlap. So boom, that's a
1:19:25fale gap. And we can just keep doing
1:19:27this. Boom. Here's another fale gap and
1:19:29another fale gap. And we keep creating
1:19:31these imbalances, right? We keep pushing
1:19:33price higher and higher and higher.
1:19:35Boom, boom, boom. And what do we do?
1:19:37Boom. We trade into these gaps. And just
1:19:39because we disrespect this one guys, we
1:19:41are still respecting this gap here. This
1:19:43is like a very important gap because
1:19:45it's in, you know, I'm going to get into
1:19:46premium discount in the next video or
1:19:48maybe in two videos. But yeah, anyways,
1:19:49gaps are still getting respected,
1:19:50trading away. What do we do here? We
1:19:52have another bullish for gap. This gets
1:19:54traded into and what does it do?
1:19:56Respects it and then trades away. Boom.
1:19:58Hold it, trade away. What do we do here
1:19:59with this gap? Hold it, trade away. And
1:20:01we are constantly respecting these gaps.
1:20:03Respecting these gaps. We are doing
1:20:05what? In this meantime, seeking buy side
1:20:08liquidity. seeking buy liquidity here
1:20:09and we're looking to target what? Buy
1:20:11side liquidity here. So until you know
1:20:13we reach this buy side liquidity level,
1:20:14we're most likely just going to keep
1:20:16respecting these gaps that get created,
1:20:17right? And boom, we have another bullish
1:20:19valley gap here. We have a gap right
1:20:21here as well as we have a bullish rally
1:20:23gap right here. And sometimes, you know,
1:20:25we can end up trading all the way.
1:20:27Sometimes we can do stuff like this
1:20:28trade to like these unfilled gaps here
1:20:30because these haven't been rebalanced.
1:20:32So sometimes we can go back to these,
1:20:33but we can also just respect these, keep
1:20:35trading up. And as you can see, we ended
1:20:37up trading to this buy side liquidity.
1:20:39Right? So sometimes you will see a gap
1:20:41like this, for example, like what I was
1:20:43just talking about get disrespected.
1:20:45Does this mean that the bias is now
1:20:46bearish? No. Right? This doesn't mean
1:20:48that we are not bearish because we are
1:20:50still respecting these other gaps right
1:20:52here. I know it's a little bit
1:20:53confusing, but it's just really
1:20:54important to note that we are going to
1:20:56continuously keep respecting these gaps.
1:20:57And you know, there's going to be times
1:20:58where we might leave like an unfilled
1:21:00gap is what it's called. An
1:21:01unmititigated gap. Just basically an
1:21:03unmititigated gap is just a gap that
1:21:05hasn't been traded to. There's no wicks
1:21:07inside of it, right? Versus a gap like
1:21:09this has already been mitigated cuz a
1:21:10wick has printed in it. But again, no
1:21:12wicks, no candles have even touched this
1:21:14gap. So, it's been unmititigated.
1:21:16Nothing here as well. So, price does
1:21:17tend to trade back to those levels. For
1:21:19example, here we had a gap here and then
1:21:21we had another gap here and price wanted
1:21:23to trade to this unmitigated gap before
1:21:24going higher. So, it sometimes does
1:21:25that. And then what do we do? We
1:21:27targeted that buyside liquidity pool
1:21:29right up here and then we hit that
1:21:31buyside liquidity right there. that
1:21:32swing high, that prominent swing high.
1:21:34So, really, really nice. Now, I'll show
1:21:36you some examples of price respecting
1:21:38some bearish for gaps. All right, so
1:21:39looking at the scenario here, right, we
1:21:41ended up sweeping out some buy side
1:21:43liquidity to the left of us. You see
1:21:44that we have this swing high, this
1:21:45promised swing high here. We swept out
1:21:47this buy side liquidity and what do we
1:21:49have below us? Sellside liquidity. So, I
1:21:50want you guys to not only start marking
1:21:52out your fair value gaps with this
1:21:54lesson, but as well start marking out
1:21:55your sellside liquidity pools. Sellside
1:21:57liquidity resting, you know, here. But
1:21:59yeah, sellside liquidity here, here,
1:22:00here. all the sell side equity pools and
1:22:02let's just look at what price does,
1:22:04right? Let's mark out the feral gaps
1:22:05that we have so far in this trading
1:22:07current trading leg that we're in.
1:22:09Right? This is like the leg that we're
1:22:10in. We have this bullish rally gap right
1:22:12here. Right? We ended up taking out some
1:22:13buy side liquidity and what do we do? We
1:22:15ended up closing through this bullish
1:22:18fale gap. Right? As you can see here, we
1:22:20swept out buy side liquidity and then
1:22:21did we respect this bullish rally gap?
1:22:24No. We respected it here. But then if we
1:22:26look at this candle right here, it
1:22:27absolutely dumped through this gap and
1:22:29there was no signs of price going back
1:22:31higher. We didn't respect this and then
1:22:33start going higher. No, we just kept
1:22:34trading through it and through it and
1:22:36through it, right? So this is a very
1:22:38clear sign that price wants to now go
1:22:40lower, right? And we can start seeing
1:22:42that potentially we can start going for
1:22:44more sellside liquidity pool. Another
1:22:46thing that again price loves to do is
1:22:48rebalance inefficiencies and rebalance
1:22:50gaps. Inefficiencies is just a f value
1:22:52gap and a gap is just a f value gap as
1:22:54well. Right? So when I say an
1:22:55inefficiency, that just simply means an
1:22:57unfilled fair value gap, right? So as
1:22:59you can see here, if we look on like the
1:23:0115-minute time frame, what do we have?
1:23:02We have a bunch of unfilled gaps, right?
1:23:04I was just on the 5minut time frame and
1:23:05that's what kind of showed me the fair
1:23:07value gap here because, you know, there
1:23:09will sometimes be for rally gaps that
1:23:10show on like the 5minut time frame like
1:23:12this and then they don't show up on the
1:23:1415-inut time frame, right? Because you
1:23:16know price and time is fractal and all
1:23:18that stuff. But if we look at this gap
1:23:20right here, okay, we have a gap here. We
1:23:22have an unfilled gap here, unfilled gap
1:23:24down here. We have a bunch of unfilled
1:23:26gaps and all these inefficiencies in
1:23:28price. Price loves to trade back to
1:23:30these. And these are seen as magnets in
1:23:32price, right? Especially if the bias is
1:23:34bearish and we are going towards what?
1:23:36Sellside liquidity all the way down
1:23:38here. We have this beautiful sellside
1:23:39liquidity pool that we're probably going
1:23:40to be reaching, right? So looking at
1:23:42this, we get a lot of displacement and
1:23:44now we are showing signs of bearish
1:23:46rally gaps. You can see here we have a
1:23:47bearish ralli gap. Let's keep looking,
1:23:49right? Boom. And we create another
1:23:51bearish rally gap on the way down. And
1:23:53again, price doesn't always need to
1:23:55trade back to every single feral gap
1:23:57that gets created in, you know, a move.
1:24:00But typically, we like to, you know,
1:24:01rebalance the range a little bit,
1:24:03meaning like we like to trade back to
1:24:04these gaps, but again, we don't have to
1:24:06trade back to every single one. That's
1:24:08typically not always how price moves. As
1:24:10you can see here, what did we do again?
1:24:11We created another bearish rally gap and
1:24:14another bearish rally gap. So, we keep
1:24:16creating these bearish rally gaps. This
1:24:17is a very clear sign that we are trading
1:24:19towards what this sellside liquidity
1:24:21pool right here. Right? So very clear
1:24:23sign that we are going to go lower. And
1:24:24if we mark out all these gaps in the
1:24:26range, we end up trading towards this
1:24:28and we end up disrespecting this one.
1:24:30Right? But that doesn't mean entirely
1:24:32the bias is bullish yet because what are
1:24:33we still looking for? The sell side
1:24:35liquidity, right? Liquidity at the end
1:24:36of the day, guys, is going to be like
1:24:38the most important concept here that I'm
1:24:40teaching because liquidity and fair
1:24:41value gaps, these all combine. So you're
1:24:43seeing how you know now things are
1:24:45starting to make sense where fair value
1:24:47gaps need to be respected to go for the
1:24:49liquidity right so just because again
1:24:51this one got rebound or disrespected we
1:24:53just simply wanted to trade back to this
1:24:55one and get you know rebalance this
1:24:57range a little bit more so we hit that
1:24:58gap and then boom what do we start doing
1:25:00completely disrespecting these gaps we
1:25:02end up making what little bullish gaps
1:25:04here as well on the way up and these
1:25:06just got completely ran through also
1:25:08size of the gaps guys really don't
1:25:10matter I mean it will show sometimes a
1:25:12lot more displacement than others, but
1:25:13every single feral gap matters in the
1:25:15way that like if it's small, if it's
1:25:17big, um it's going to still matter,
1:25:20right? So, be paying attention to that
1:25:21that you know that that is this is still
1:25:23considered a feral gap. If you really
1:25:25zoom in here, this first candle's top
1:25:26wick doesn't overlap with this third
1:25:28candle's bottom wick. So, this creates a
1:25:30gap, right? The same way that this
1:25:31creates a gap, right? So, you just have
1:25:33to zoom in sometimes. But you see, we
1:25:35close through that and then we close
1:25:36through this one again. And where do we
1:25:38look for this sellside liquidity? And
1:25:40you could see that boom, we end up
1:25:41smacking through that. And we also go
1:25:43for some other sellside liquidity pools
1:25:46or some other targets to the left of us
1:25:47there. But yeah, this is just a great
1:25:49example of price, you know,
1:25:50disrespecting, you know, these bullish
1:25:52gaps here and then going for the
1:25:54sellside liquidity and respecting these
1:25:56bearish gaps, which is essentially like
1:25:58the whole premise of my trading strategy
1:26:00and model, but you know, I'll get into
1:26:02the specifics of my model later on, but
1:26:04this is just the base of it. So it's
1:26:05really important that you guys start
1:26:07understanding for value gaps and you
1:26:09know what for value gaps are getting
1:26:10respected disrespected how we're trading
1:26:12from buy side liquidity to sellside
1:26:14liquidity and all that stuff. So really
1:26:16important that you guys note that. So
1:26:17yeah guys just please again just start
1:26:18marking these out on your chart and as
1:26:20you guys were seeing like from this
1:26:22example right when we are looking to go
1:26:24for buy side liquidity and you see that
1:26:26we have strong displacement in the form
1:26:27of what for valley gaps right and we can
1:26:29also turn on that for valley gap
1:26:31indicator just to really see what we're
1:26:33looking at. see all these rally gaps
1:26:35getting pushed up and we are looking to
1:26:36target this buy side liquidity. When you
1:26:37see stuff like this happen guys, you can
1:26:40expect that bullish for rally gaps to
1:26:42continue getting respected and sometimes
1:26:44we might trade back to gaps like here.
1:26:45We sometimes might trade back to gaps
1:26:47down here, right? You can expect gaps to
1:26:49continuing to get uh respected until we
1:26:51hit the buy side liquidity. And then for
1:26:52example, if we start going for sellside
1:26:55liquidity, what can you expect? Well,
1:26:57then bearish gaps get respected and then
1:26:59the bullish gaps get what? Disrespected.
1:27:01Right? If we look at this example here,
1:27:02boom, you see that a lot of bullish gaps
1:27:04in this area are getting disrespected.
1:27:07We have bearish gaps though and they are
1:27:08going to get respected because we are
1:27:10going to target sellside liquidity. So,
1:27:12you know, whenever we're in trends like
1:27:14in a downtrend, bearish gaps are getting
1:27:16respected. In an uptrend, bullish gaps
1:27:19are getting respected simply put, right?
1:27:21And then these gaps are getting
1:27:22disrespect, right? So just again you
1:27:24have to be trading alongside the trend
1:27:26to understand that and be looking at the
1:27:29targets of buy side liquidity of sell
1:27:31side liquidity looking at targets like
1:27:33here like there you know and uh be
1:27:35marking out your pools and again guys
1:27:37mark out your feral gaps. I typically
1:27:39just mark out my gaps from the 5minut
1:27:41time frame to the 15-inut to the hourly
1:27:43to the 4 hour to the daily. I use the
1:27:455minut time frame usually like minimum
1:27:47to mark out my feral gaps for areas of
1:27:50rejection and for targets. I use the
1:27:5250-minut time frame then then I use
1:27:53sometimes a 30 minute hourly 4 hour and
1:27:56you guys will see like we disrespected
1:27:58and we start trading through like these
1:27:594hour gaps here right you can see price
1:28:01respects 4hour gaps to the left of us
1:28:03here and this is what send price lower
1:28:05right so typically we will have moves be
1:28:08you know sponsored I like to say or you
1:28:10know created from these for valley gaps
1:28:12and from liquidity pools and from
1:28:15liquidity sweeps and all that stuff so
1:28:17everything works together in the sense
1:28:18that you know on the what's happening on
1:28:20the higher time frame is happening on
1:28:22the lower time frame and what's sweeping
1:28:24out liquidity on the lower time frame is
1:28:25sweeping out liquidity on the higher
1:28:26time frame and vice versa. So yeah,
1:28:28again guys, just mark it out. I usually
1:28:30again use the 5minut time frame,
1:28:3115-minut, 1 hour, 4 hour, daily,
1:28:33sometimes even weekly if we're going to
1:28:35that. But um yeah, fair value gaps are
1:28:38great targets to go for. Like we like to
1:28:40target unfilled gaps, you know, gaps
1:28:42that haven't been hit before. As you can
1:28:43see in this range, right, we have a lot
1:28:45of unfilled gaps. This is a magnet in
1:28:46price. love to trade back to these as
1:28:48well as fair value gaps are great
1:28:50rejection areas where you can take your
1:28:52short positions from right and you can
1:28:53look to target you know your sellside
1:28:55liquidity after seeing you know price
1:28:57for respecting gaps the same thing you
1:28:59see price disrespecting this bullish gap
1:29:01here once you see price disrespecting
1:29:03this bullish gap what can you expect
1:29:05well for price to continue lower and
1:29:06then you can take positions targeting
1:29:07there right so again great targets as
1:29:10well as great areas of rejection and
1:29:12great tellers of bias that's really what
1:29:14feral gaps do and feral gaps and
1:29:16liquidity. They all work together. And
1:29:18that's pretty much it. Your guys'
1:29:19homework again is going to be mark out
1:29:21fair value gaps on the chart and mark
1:29:23out your pools of liquidity and see how
1:29:25price is respecting gaps. See how price
1:29:27is disrespecting gaps and see how price
1:29:30is targeting liquidity pools with that.
1:29:32Okay? So, make sure to do that guys for
1:29:34your homework and um just look back do
1:29:36it for like a week look back in your
1:29:38charts and do that. Yeah. I'll see you
1:29:41guys in the next lesson. All right,
1:29:43guys. For this lesson, we are going to
1:29:44be covering equilibrium, premium, and
1:29:46discount. This is a really important
1:29:48lesson, so please listen up. This is
1:29:50going to be covering a lot about range
1:29:52trading. Um, this is really important to
1:29:54understand your risk-to-reward as well
1:29:56as to understand where the market is
1:29:58rebalancing the range, right? Let's say
1:29:59you have a lot of fair value gaps in a
1:30:01leg and you don't know where price is
1:30:03going to rebalance and you know what
1:30:05fair value gap it's going to hit and
1:30:06reject off of. Well, this is where
1:30:07equilibrium, premium, and discount comes
1:30:09into play. So, listen up to this lesson,
1:30:11guys, and um let's get into it. All
1:30:12right. So this is your equilibrium,
1:30:15premium and discount. Equilibrium is the
1:30:17middle of the range. It is the complete
1:30:1950% midpoint. Premium is above that 50%
1:30:23midpoint. Discount is below that 50%
1:30:27midpoint. What does all this mean? Okay,
1:30:29so when we are looking at charts, right,
1:30:31every chart has its own range. Every
1:30:34chart has its own swing low to swing
1:30:36high, right? And this is a range, right?
1:30:39When you look at a chart like this, when
1:30:40we have a low to a high that gets
1:30:42created, there is a range within this.
1:30:44And in these ranges, there is
1:30:46equilibrium and there is a premium and
1:30:48there is a discount. And we can draw it
1:30:50out from the swing low to the swing
1:30:51high. Okay? So, when you draw out your
1:30:53GAN box, you can also use the Fibonacci
1:30:55tool right up here. Fibonacci tool just
1:30:56gives you a little bit more levels to
1:30:58work with, but this is a little bit more
1:30:59advanced for now. I just want you guys
1:31:00to be using the scan box. And it'll tell
1:31:02you where equilibrium lies, where
1:31:04premium is, and where discount is. So
1:31:06anything above the 50% midpoint,
1:31:08anything above here is considered what?
1:31:11A premium. Anything below here is
1:31:13considered a discount. And typically
1:31:16when we are buying into the markets, we
1:31:18want to be at discount or we want to
1:31:20have already hit discount and now
1:31:22trading up, right? So why is this the
1:31:24case? Well, let's just think about this
1:31:25logically, right? When you're going to a
1:31:28store, for example, you want to be
1:31:30buying things that are on sale, right?
1:31:31You don't want to be buying things that
1:31:33are not on sale, right? You want to be
1:31:35getting that discount. You want to be
1:31:36getting that sale. So you want to be
1:31:38buying things that are on discount. Of
1:31:39course, you don't want to be buying
1:31:40things at a premium when prices are
1:31:42inflated, right? So it goes the same way
1:31:44with trading. There is going to be a lot
1:31:46more buyers that are willing to step
1:31:48into the market when we are at a
1:31:50discount in price versus when we are all
1:31:53the way up here. Nobody wants to buy
1:31:55Bitcoin when we're at the very very top
1:31:58of the range, right? When we're at, you
1:32:00know, 100 and whatever thousand. People
1:32:02are waiting for price to dump to go
1:32:05lower so then we can get in at a
1:32:07discount on Bitcoin and on all these
1:32:09other assets, right? That's just what
1:32:10people typically, you know, do for
1:32:11Bitcoin. But it's the same thing with
1:32:13intraday trading and everything like
1:32:14that. There's going to be a lot more
1:32:16buyers stepping in. So, the market
1:32:18typically moves towards those areas to
1:32:21fill orders to get people into the
1:32:23market. Okay? So, that's just something
1:32:24that you have to know. Now, the other
1:32:26thing that's really cool with premium
1:32:27and discount and equilibrium and that
1:32:29stuff is it's going to tell you exactly
1:32:31your risk-to-reward. So, when you're
1:32:32entering into the market, right, you're
1:32:34going to have a risk-toreward of a
1:32:35stop-loss and a TP. The lower your
1:32:37risk-to-reward is is usually going to be
1:32:40the higher you are in a premium, right?
1:32:42When you're in a bull scenario, right?
1:32:43So, if we're looking at this chart here,
1:32:44you can see that if we look at the
1:32:46risk-to-reward from the equilibrium
1:32:47point to the low to the high, that's
1:32:49going to put us exactly at a one:1
1:32:52risk-to-reward. As you see here, this
1:32:53puts us exactly at a one to one
1:32:55risk-reward. And the higher we go, the
1:32:57lower our risk-reward is. So, a lot of
1:32:59people don't want to be entering into
1:33:00the market, right, when your riskreward
1:33:02is negative, right? Because you don't
1:33:04want to be risking, for example, $100
1:33:07and only making 50 bucks, right? That's
1:33:08a 0.5 riskreward. You want to at least
1:33:10be making $100 when you're risking $100.
1:33:13That's a one:1 risk-reward. So, people,
1:33:16a lot of people are getting entered
1:33:17here. And you could see that the lower
1:33:19we go into discount, what happens? the
1:33:21higher the risk-to-reward becomes. So
1:33:24again, a lot of people are buying in
1:33:26this area because it's at a discount and
1:33:28the riskreward is going to be a lot
1:33:29better. And you typically will see that
1:33:31the market likes to react off of levels
1:33:33here, off of fair value gaps here, off
1:33:35of liquidity pools that are resting
1:33:37here. We like to sweep areas that are,
1:33:39you know, below discount if we're
1:33:41bullish and uh things like that. Okay.
1:33:42So now let's look at the bearish example
1:33:45now to the left of us. So if we look to
1:33:46the left of us, right, you see that we
1:33:48have a similar range. is just a bearish
1:33:50range now, right? Where we have a swing
1:33:52high to a swing low. And we can draw out
1:33:54our gam box right here. Draw it out from
1:33:56the swing high all the way down to the
1:33:58swing low. And you see that we have a
1:34:00range. Now, where is premium? Above the
1:34:0250% midpoint. And where is discount?
1:34:05Below the 50% midpoint. So, when we are
1:34:07in a bearish trend, it's actually the
1:34:09opposite. You want to be selling above
1:34:12the 50% midpoint. You want to be selling
1:34:14at that premium, right? And then you
1:34:15want to be buying back at the market at
1:34:17a discount, right? That's because you're
1:34:18shorting the market. You want to be
1:34:20shorting higher. And then, you know,
1:34:21it's that saying of buy low, sell high,
1:34:24and sell high, buy low, right? Not a lot
1:34:26of people say that second saying. I just
1:34:28made that up. But a lot of people say,
1:34:29you know, buy low, sell high. But it's
1:34:31the same thing if you are shorting the
1:34:32market, right? You do not want to be
1:34:33shorting the market when it's already
1:34:35dumped so freaking much. You want to be
1:34:37waiting for price to retrace, to
1:34:40rebalance the range, so you can have a
1:34:42better what? Risk-to-reward. So, you can
1:34:44see now we add a 1 one. And the higher
1:34:46it goes, you get better riskreward,
1:34:48better risk reward, better riskreward.
1:34:49Right? And you can see that just you can
1:34:51get a one to two risk reward if you go
1:34:52up here. Right? So equilibrium, premium,
1:34:54and discount, these are all relative to
1:34:57each other. Whether you are bullish,
1:34:58whether you are bearish, right? But you
1:35:00want to note that you are wanting to be
1:35:02shorting when we're in a premium. And
1:35:03then you want to be longing when we're
1:35:05in a discount of price, right? So just
1:35:07remember that. And yeah, this is what
1:35:09all it means. And now we can move on to
1:35:11some chart examples. So if we take a
1:35:12look at Monday here, December 15th, this
1:35:15was a trading day where we dumped a lot
1:35:18in the AM session, right? You will see
1:35:19that we ended up dumping, dumping,
1:35:21dumping, and we had a pretty massive
1:35:23dump here, right? And what did we do on
1:35:25the way down? Well, we ended up creating
1:35:27a lot of bearish gaps. As you can see
1:35:29here, we ended up having a fat impulse
1:35:31lead, right? You can see from this high
1:35:33to this low that got created, right? We
1:35:35have a swing high and we have a swing
1:35:36low in place. So what we can do now is
1:35:38mark out this range from the swing high
1:35:40all the way down to the swing low. And
1:35:42you can see that we have a midpoint of
1:35:44equilibrium. Now us as traders, we do
1:35:46not want to be shorting when we are all
1:35:48the way down here, right? It's going to
1:35:50be very low probability when we are
1:35:52trying to take shorts here because the
1:35:53market hasn't rebalanced this range yet,
1:35:55right? So risk-to-reward going to be
1:35:57really bad. But you're also price hasn't
1:35:59rebalanced the range yet. So the market
1:36:01is not really ready to sell off. We
1:36:03still need to fill orders above us here
1:36:05where people are waiting to get filled
1:36:07in at a premium since price is very much
1:36:09dumping and we are bearish, right? So,
1:36:11we want to be waiting for that. Now,
1:36:12what can we see in this range? Well, we
1:36:15have a fal gap here, right? This is a
1:36:17bearish fal gap. But where is this
1:36:18resting? This is resting at a discounted
1:36:20price, which is not what we want to be
1:36:22looking to take trades off of yet
1:36:24because it is not ready to sell off,
1:36:26right? Because then we also have what do
1:36:27we have a premium of price a premium for
1:36:29val gap. This is going to be a much
1:36:30better for valley gap to look for to see
1:36:32price bounce off of. And we also have
1:36:33another for gap up here. So we're most
1:36:35likely going to react off of which gaps
1:36:38in this scenario? I want you guys to
1:36:40answer this question. Where are we most
1:36:41likely going to react? We are most
1:36:42likely going to react off of any of
1:36:44these two gaps up here. Right? Why?
1:36:46Because this is still at a discount
1:36:49versus this gap here. It's still at a
1:36:50premium or sorry vice versa since we are
1:36:53bearish. Right? This is at a premium and
1:36:55then this is at a discount. So since we
1:36:56are shorting, we want to wait for price
1:36:58to come into a premium and then short
1:37:00the market. Right? So that's exactly
1:37:02what happens. We end up rebalancing the
1:37:04range here and as you can see we trade
1:37:05to that and then what do we do? We
1:37:07immediately react off of this. So what
1:37:09is this showing in the market, right? We
1:37:11are seeing that we are getting orders
1:37:13that are filled here and then we
1:37:14immediately start dumping after that
1:37:16because a lot of people are getting in
1:37:17with much better stop- losses, much
1:37:19better risk-to-reward here, right? And
1:37:20you can see we can just mark out this
1:37:22gap here. It's not necessary for the
1:37:24price to come all the way back up here.
1:37:25This is also like a good thing to start
1:37:27like looking at is that typically if we
1:37:29start running through equilibrium and we
1:37:31start getting super super high, we're
1:37:33most likely not going to respect that
1:37:34range. We're most likely just going to
1:37:35go for these highs, right? So, it's good
1:37:37to be looking and marking out the fair
1:37:39value gaps and the liquidity pools that
1:37:41are resting within equilibrium and
1:37:43seeing if that's getting respected or
1:37:44not. Right? The same way you see if a
1:37:47fair value gap gets respected or not and
1:37:48that tells a lot about the bias. You can
1:37:50do the same thing with premium and
1:37:52discount and equilibrium and all that
1:37:53stuff. Right? If you see that we are
1:37:54clearly respecting this gap trading
1:37:56lower and we are respecting equilibrium
1:37:58of the range. We are respecting these
1:38:00premium for value gaps and these premium
1:38:02key levels and you are seeing now what
1:38:04are we seeing here? Ooh, we start
1:38:06disrespecting this bullish gap. What can
1:38:08you expect for price to then go lower
1:38:11towards where the sellside liquidity?
1:38:13See how things are now starting to align
1:38:15and everything is aligning, right? This
1:38:17is basically a trade that I would take.
1:38:19This is literally my trading model,
1:38:20right? God damn. Bada boom. There we go.
1:38:22Took literally all day. But yeah, this
1:38:24is typically like a trade that I would
1:38:26probably normally take. Um I don't think
1:38:28I would take it on this day because it
1:38:30was Monday 15th. But yeah, anyways, this
1:38:32is just an example of what premium and
1:38:34discount looks like and how we react to
1:38:35these ranges. So make sure you start
1:38:37marking it out. It's really important to
1:38:38note that these are great to start
1:38:40marking out on like the 5minut time
1:38:42frame, on the 15-inut time frame, and
1:38:44really when we get these like big
1:38:45impulse moves, right? I'm not marking
1:38:47out every single range. Like, especially
1:38:49if I'm on like the one minute time
1:38:50frame, guys, I want you guys to know
1:38:51that I'm not like marking out every
1:38:53single little range from this swing low
1:38:55to this swing high because, you know,
1:38:56it's just going to get like a lot of
1:38:57noise because there's, you know, so many
1:38:59ranges, right? And I'm really just
1:39:01caring about that higher time frame from
1:39:03the 5m minute and above 5m minute
1:39:05minimum but really like that 15-inut and
1:39:07above for bias and looking at where
1:39:08price is going to reject. And then when
1:39:10it comes down to looking for actual
1:39:12entries, we can start looking at lower
1:39:14time frames like the 5minute. I'll get
1:39:16in a second here. But I'm going to show
1:39:17you another example on the chart of what
1:39:19it looks like for the bullish scenario.
1:39:21So we'll get into that now. All right.
1:39:22So now if we're zooming out and we're
1:39:23looking at a bullish example on the
1:39:25chart, what do we see? We see that price
1:39:28is clearly clearly ripping higher and
1:39:30higher and higher and it's not the best
1:39:32idea to want to be buying at this area,
1:39:34right? We want to be waiting and if we
1:39:36go on like the 50-minute time frame
1:39:37here, we want to be waiting for price to
1:39:39have a pullback into equilibrium of the
1:39:41ranch, right? You see that price is
1:39:42continuously ripping up and up and up
1:39:45and up, right? So, let's just take a
1:39:46look at the hourly time frame since this
1:39:48is a pretty fat move that happened. And
1:39:50we can check out the hourly time frame
1:39:51for this. This will give us a clear
1:39:53sense of the swing low and swing high
1:39:55that got put in play. You can see that
1:39:57the start of this fat impulse move
1:39:59started at this swing low that is right
1:40:01here. And we created a swing high that
1:40:03got put in place right here. So we can
1:40:05draw out our tool right here with this
1:40:07GAN box. And we can start doing what? We
1:40:09can start marking out the feral gaps in
1:40:11this range. Right? So let's mark out the
1:40:13fal gaps in this range. And while we're
1:40:14at it, we can also mark out some buy
1:40:16side liquidity pools. Right? Since we
1:40:18have a huge impulse move to the upside,
1:40:20we can also expect to start running
1:40:22towards these buy side liquidity pools.
1:40:23Right? We have buy side liquidity
1:40:24resting here. And we also have some buy
1:40:27side liquidity resting right around
1:40:29here. Right? So price is clearly showing
1:40:31a lot of displacement towards what? Most
1:40:34likely going towards these buy side
1:40:35liquidity pools. Right? So let's see
1:40:37what we want to do here. Right? We want
1:40:39to probably trade back into equilibrium
1:40:41of this range. We have a lot of feral
1:40:43gaps, right? We have a feral gap resting
1:40:44right here. We have another feral gap
1:40:47resting where? Right here, as you can
1:40:49see. And we have another feral gap
1:40:50resting where? Right here. So we have
1:40:52three feral gaps. Where is price guys
1:40:55most likely going to react in this air
1:40:57in this scenario or where do we as
1:40:59traders want to see price go before
1:41:02taking a trade? If you answered this
1:41:04feral gap here then you are correct. The
1:41:07falic gap that is resting at discount
1:41:09right? We do not want to be buying in a
1:41:10premium. This is not a good area to be
1:41:12buying. We want to wait for price to go
1:41:14at least a little bit lower and
1:41:15typically at a discount is going to be
1:41:17the best place for price to go before
1:41:20taking our longs. Now, what I want you
1:41:21guys to know is that also we don't have
1:41:23to be buying in a higher time frame
1:41:25range. Like we don't I don't have to
1:41:27personally be at a discount to take a
1:41:29trade. Now, what does this mean? If
1:41:31price goes down here, let's say, right?
1:41:32I don't have to take longs from this
1:41:35position. But as long as I know that the
1:41:37range has been rebalanced and then we
1:41:39start going back up, I am then
1:41:40comfortable taking a position somewhere
1:41:42like here, right? And then I know and I
1:41:44can still get, you know, a good
1:41:45riskreward based on my trading strategy,
1:41:47my model. But I know that since price
1:41:49has already rebalanced this range that
1:41:51it's okay that I, you know, those lows
1:41:53are now protected. We don't have to go
1:41:55back to that area cuz it's been already
1:41:56rebalanced. So that's really important
1:41:58to note um is that, you know, I don't
1:42:00need to be in there to take a trade, but
1:42:01I at least want to see it get hit. And
1:42:03you know, if I am in a discount when I'm
1:42:05longing, then that's of course ideal and
1:42:07that is great. But yeah, let's take a
1:42:09look at this chart and we can go on the
1:42:11hourly and we can clearly see all these
1:42:13rallied gaps and price is slowly
1:42:15starting to rebalance this range. Again,
1:42:18a lot of people are also going to get
1:42:20caught up in taking longs here, right?
1:42:22You can see that we ended up hitting a
1:42:24bullish for gap in this range, right? If
1:42:26we just like clo, you know, stop, not
1:42:27look at anything here, like close out of
1:42:29that GAN chart, right? You see, oh well,
1:42:31we hit a bullish for gap, we're bullish,
1:42:33so we should continue going higher. But
1:42:35is that usually what's going to happen?
1:42:37No. What is price most likely going to
1:42:38do? It's going to fake out and bait a
1:42:40lot of people into going long from here.
1:42:43But what is price really wanting to do?
1:42:45It's wanting to rebalance the range. So,
1:42:46a lot of people are going to try to take
1:42:48long positions here. And it might work
1:42:50for a bit, but really what's going to
1:42:51happen is they're not going to go for
1:42:53this buy liquidity pool. And this buy
1:42:55liquidity pool is going to get left
1:42:56behind. People are going to get stopped
1:42:58out. People are going to get stopped at
1:43:00break even. this position, this play is
1:43:01not going to work out in their favor
1:43:03towards this because why? We want to go
1:43:05back towards EQ of the range. We want to
1:43:07go back to the discount of the range. We
1:43:10want to go back to the discounted fair
1:43:11value gap. And what do we do here? We
1:43:13end up trading back lower. Boom. We hit
1:43:15this range. We hit the discounted fair
1:43:17value gap. We get a massive candle
1:43:19rejection wick here. You can see the
1:43:21massive rejection wick we get. And what
1:43:23do we start doing? We get a massive
1:43:25candle back to the upside. And bada
1:43:27bing, bada boom, we start disrespecting
1:43:29these gaps. And then price goes where?
1:43:31Towards that buyside liquidity right
1:43:33there. And then where do we also go? We
1:43:35start seeking out higher pools of
1:43:36liquidity to the upside. And we end up
1:43:38targeting those buy liquidity pools
1:43:40right there. So this move all started
1:43:42from looking at that higher time frame
1:43:43range. Right? We can look at the hourly
1:43:45range. We can look at this on the 4our
1:43:47as well. That also tells the story. This
1:43:49is a 4hour bullish valley gap, right? So
1:43:51price traded back into that 4hour gap.
1:43:53But I thought it'd be a little bit
1:43:54easier for you guys to see this whole
1:43:55entire range on like the hourly. But um
1:43:57yeah, you can mark it out like that.
1:43:58Again, really important for finding out
1:43:59your bias, right? On a day like this, I
1:44:01wouldn't be longing up here. I would
1:44:03wait for price to hit this and then I
1:44:05would take some sort of longs. Maybe if
1:44:06we get a rejection off that, if we see
1:44:08some confirmation, then I would feel
1:44:09more comfortable buying here versus
1:44:11buying up here when we haven't even hit
1:44:13this area, right? So, it's again really
1:44:16important to be marking out your
1:44:17premium, your discount of large impulse
1:44:19ranges and moves like this. So, I want
1:44:21you guys to start getting better at just
1:44:23marking out your overall ranges of the
1:44:25day, right? When you're going into a
1:44:26trading day, look at the range that, you
1:44:28know, London session made. Look at the
1:44:30range that Asia session made. And we're
1:44:32going to go into, you know, time and
1:44:34things like that in the next uh lesson.
1:44:36But start marking out those things,
1:44:37right? And if we're just looking at this
1:44:39chart here, right? If I'm looking at
1:44:41this chart, we're going to be seeing
1:44:42that this is a range on the hourly
1:44:45chart, right? You see that we have this
1:44:46swing low to this swing high. That's to
1:44:48me what's standing out like a sore
1:44:50thumb, right? That's to me what is
1:44:52looking the most obvious. And you're
1:44:53starting to realize also hopefully that
1:44:55a lot of this is discretion with trading
1:44:57guys, right? You're not just going to
1:44:59completely completely understand every
1:45:01single concept the way I teach you in
1:45:03the first try. You also have to be
1:45:04marking out things on your own. So start
1:45:06looking at your own charts and start
1:45:07seeing where we are reacting and um how
1:45:09to start forming your bias. But yeah,
1:45:11when I'm looking at this chart, the most
1:45:12obvious range to me is from this low to
1:45:14this high. That's what I see. And I'm
1:45:17going to mark it out like this. Right?
1:45:18When I'm looking to take a trade, what
1:45:20do I want to see price go into? I want
1:45:22to see price go into and dip into a
1:45:24discount of the range and then go back
1:45:26up higher. Right? That's what I'm going
1:45:28to be looking at. And what do I see
1:45:29below us at discount? I see fair value
1:45:31gaps and I see liquidity. Right? So I
1:45:33see liquidity resting right here. This
1:45:35is sellside liquidity. Where do I also
1:45:37see sellside liquidity? Right here. And
1:45:38then I also see another sellside
1:45:40liquidity pool right down here. Right?
1:45:41So we have three sellside liquidity
1:45:42pools right here resting below discount.
1:45:45So from this trading example, right from
1:45:47this leg, we are most likely not just
1:45:49going to hit this and then pump up
1:45:51higher. Why? Because now that this swing
1:45:53high is in play, we have a lot of
1:45:55liquidity pools resting below at
1:45:57discount and price likes to seek out
1:45:59liquidity pools at discount to then run
1:46:01higher. Right? So as you can see, we end
1:46:02up trading. We sweep out these lows and
1:46:05notice how we have such an instantaneous
1:46:08reaction from this. Notice how we have
1:46:10no candles closing through this. We have
1:46:12no bodies closing through, should I say,
1:46:14right? And we just simply wick through
1:46:16these levels. Since we wick through
1:46:17these levels and since we respect all
1:46:19these gaps in the discount of this
1:46:21range, right? You can see we have fair
1:46:23value gaps resting here. This is a great
1:46:25great sign. We also are reacting off of
1:46:27a fair value gap right here. Right? As
1:46:29you can see, and what do we do? We end
1:46:30up trading higher. And what do we
1:46:32target? This buy side liquidity. And you
1:46:34can also start seeing, you know, other
1:46:35ranges inside of ranges, right? What do
1:46:37you notice about this range right here?
1:46:39Well, you notice that there's another
1:46:41range to the downside, right? And what
1:46:42do you see? we start trading through
1:46:44this gap that is resting at discount,
1:46:47right? And you know, it's still
1:46:48technically getting respected, but based
1:46:50off of this move that we had before,
1:46:52this gap is probably not going to get
1:46:54respected, right? And what do we see? We
1:46:56see that this gap actually gets closed
1:46:58through. And if we zoom in a little
1:46:59more, what are we doing? We see that we
1:47:00have another range right here. Trading
1:47:02back to where equilibrium of the range.
1:47:04What are we doing? Respecting it. What
1:47:05are we doing? We are respecting it,
1:47:07right? And then we start trading higher
1:47:08and higher and higher. And where are we
1:47:10going? This buy liquidity. So, I know
1:47:12that was a little bit confusing, me
1:47:13marking out all those different ranges,
1:47:15and that is not typically what I do,
1:47:16right? But something that I probably
1:47:18would do is just marking out that
1:47:20initial range. So, I marked out that
1:47:22initial range, and then if I'm looking
1:47:23to probably take an entry here, what
1:47:25would I do? I would probably zoom in to
1:47:26like the 5minut time frame or something,
1:47:28and then I would look at the range, and
1:47:30I would look at this range right here.
1:47:31And this is also typically not a trade I
1:47:33would take because it looks like it's
1:47:34like 1 p.m. So, price action is probably
1:47:36going to be a little bit worse. But,
1:47:37I'll wait for price to then trade back.
1:47:39So I see that we respected this area of
1:47:41EQ on the higher time frame. We start
1:47:43trading up and what I want to see the
1:47:44same thing happen now on the lower time
1:47:46frame. And what do we do? Boom. We do
1:47:48that. What do we then see? Price starts
1:47:50disrespecting this gap to the upside
1:47:52which is a huge part of my model. And
1:47:54you see we get an inversion to the
1:47:55upside. That's what it's called. You get
1:47:57a disrespect of this gap and we can look
1:47:59to target this buy side liquidity. All
1:48:01right. So this is typically like
1:48:02probably a trade that I would look to
1:48:04take and obviously not during this time
1:48:05cuz it's like P.M. session and the price
1:48:07action is really bad. But there you go.
1:48:08As you can see, then we seek out that
1:48:10buy side liquidity. And this is like a
1:48:11very higher time frame play. But you see
1:48:13how things are just starting to now
1:48:15combine, right? These ranges, these F
1:48:17value gaps getting disrespected and how
1:48:19that ties into bias and narrative and
1:48:22how that ties into you actually placing
1:48:23your trade and you actually looking at
1:48:25where the market is going. So, start
1:48:27marking this out, guys. Your homework
1:48:29for this lesson is going to be mark out
1:48:32your ranges, mark out your equilibriums,
1:48:34your premium, your discount, and see
1:48:36where price is reacting off of and see
1:48:39how price respects the gaps that are
1:48:41resting at, you know, equilibrium in
1:48:43whatever range you're trading with,
1:48:44right? If you're trading in a bullish
1:48:45range, see how we are respecting gaps
1:48:47that are getting created at a discount
1:48:49and then see how we are respecting gaps
1:48:51that are getting created at a premium if
1:48:52we're in a bearish range. Final thing I
1:48:54want you guys to know is of course all
1:48:56these concept that I'm teaching you guys
1:48:57also like it's not 100% always going to
1:49:00happen every single time right there's
1:49:02probabilities to trading which is the
1:49:04main thing I'm trying to tell you guys
1:49:05you know you will see sometimes we have
1:49:08large large impulse moves to the upside
1:49:10and sometimes we won't even have a
1:49:12retrace right you sometimes will see
1:49:13moves like this and we don't have
1:49:15retrace we just you know tap into a gap
1:49:17here and we just keep going up you know
1:49:18that doesn't mean that you want to be
1:49:20trading up here I'm just implementing
1:49:21these things for you guys though so you
1:49:23can start teaching yourself good habits
1:49:25because when those opportunities do
1:49:26present itself and we do trade back into
1:49:29EQ, you can get like really good
1:49:30riskreward and you can get a really good
1:49:32play off that. So again, it doesn't
1:49:34always happen and it's not necessary.
1:49:36Price doesn't always need to do it and
1:49:38you can sometimes get away with taking,
1:49:40you know, a little bit of higher more
1:49:41premium plays with when you're longing
1:49:43and stuff like that. That's going to get
1:49:44into more, you know, discretionary
1:49:46trading and that's a little bit more
1:49:47advanced of concepts that I'll teach
1:49:49later on. But for now, just really focus
1:49:51on these beginner concepts that I'm
1:49:54teaching you guys on premium, discount,
1:49:55equilibrium, and waiting for that to get
1:49:57hit. Um, because I still use that to
1:49:59this day. It's very rare that I'll trade
1:50:01when price is really, really high in a
1:50:02premium or really, really low in
1:50:03discount. And it sometimes happens off
1:50:06more discretion plays, like I said, and
1:50:08I'm yapping my freaking ass off. But
1:50:10yeah, just be patient. And that's your
1:50:12homework, guys. Mark out your your
1:50:13ranges, your premium, your discount
1:50:14equilibrium. see how prices are reacting
1:50:16off them and uh look for potential
1:50:18entries towards your buy side liquidity
1:50:20pools, sell side liquidity pools and all
1:50:21that good stuff. All right, that's going
1:50:22to wrap up this lesson. The next one is
1:50:24going to be on I think I'm going to do
1:50:27probably time. Probably time's going to
1:50:28be next and then probably liquidity part
1:50:30two and then maybe some SMTs. I don't
1:50:32know. We'll see. We'll see. Um but I
1:50:34will see you guys in the next one. Peace
1:50:35out. What is everyone? Welcome to lesson
1:50:37number six in the free course series.
1:50:39For this lesson, we are going to be
1:50:40going over time. Time is so freaking
1:50:43important. I'm going to be going over
1:50:44every single session, its tendencies,
1:50:46when to be trading, when not to be
1:50:48trading, and then I'm also going to dive
1:50:50into some news, so you guys know, you
1:50:52know, how to check news on your own, how
1:50:54to see when there's going to be big
1:50:55injections of volatility and how to stay
1:50:57away from that, and also how to take
1:50:59advantage of that. So, let's get into
1:51:01time. Let's do it. So, starting off
1:51:03here, we have five different sessions,
1:51:06okay? And everything I say here, guys,
1:51:08is going to be in Eastern Standard Time
1:51:10in UTC-5
1:51:11New York time. Okay? Just remember that
1:51:13everything is in Eastern Standard Time.
1:51:15So we have Asia session, London session,
1:51:17New York AM session, New York lunch
1:51:18hour, and New York PM session. The days
1:51:20are divided into these five sessions and
1:51:23these five sessions, right? These five
1:51:25kill zones, these five times. Okay,
1:51:27session is from 8:00 p.m. to 12:00 a.m.
1:51:29Lunch session is from 2:00 a.m. to 5:00
1:51:30a.m. New York session is from 8:30 a.m.
1:51:32to 11:00. New York lunch hour is from
1:51:3411:00 to 1:00. and New York PM is from
1:51:351:00 p.m. to 4 p.m. Okay, knowing this
1:51:38guys, I want you to understand first off
1:51:40that New York AM session is always going
1:51:43to have the best volatility in terms of
1:51:45price action, in terms of movement. We
1:51:47are always going to typically, not
1:51:49always, sorry, I'll say typically New
1:51:51York AM session is going to have the
1:51:52best price action, which is why I
1:51:54strictly only trade New York AM session
1:51:55sometimes lunch hour if the price action
1:51:58is really bad. And AM session, we'll get
1:52:00into that in a second. Yeah, what I want
1:52:01you guys to know is that typically the
1:52:02price action tends to be the best during
1:52:04New York AMP session because why? Well,
1:52:05we are trading the NASDAQ, we're trading
1:52:07um NQ futures, we're know the S&P 500,
1:52:10trading the 500 stocks of the US, best
1:52:13of the world, right? So, we're trading
1:52:14that and because of that, we're not
1:52:16trading, you know, USD JPY and you know,
1:52:19we're not trading during Asia session,
1:52:20right? We're trading during New York
1:52:22time, New York. Session and that's when
1:52:23the most amount of people are going to
1:52:25be entering into the markets and that's
1:52:26when the volatility is going to be the
1:52:27best, right? So, that being said, age of
1:52:29session is from 8:00 p.m. to 12:00 a.m.
1:52:30Not going to be the best in terms of
1:52:32volatility, in terms of price action.
1:52:33It's going to you're going to see a lot
1:52:35of candles that are really choppy,
1:52:36really slow. The candles print very
1:52:38slowly, and it's just not the ter best
1:52:40in terms of volatility. I wouldn't
1:52:41recommend trading it. Blood and session
1:52:43a little bit better than Asia, not
1:52:44better than New York, though. I would
1:52:45say it's a little bit in between. Berlin
1:52:47session can move. It could be good.
1:52:49Price action could be good, but
1:52:51typically it's not the best, right? from
1:52:532:00 a.m. to 5:00 a.m. New York AM
1:52:54session from 8:30 a.m. to 11:00 a.m.
1:52:56Eastern. This is when price action is
1:52:58the best. 8:30 a.m. is when a lot of
1:53:00news is injected into the markets.
1:53:02That's what I want you guys to know.
1:53:03There's a lot of news injected at 8:30
1:53:06a.m. Typically, CPI, PPI, and we'll get
1:53:08into news later on in this video. And
1:53:10then the opening bell for New York AM
1:53:12session when I personally trade is from
1:53:139:30 a.m. So, I trade from a very short
1:53:15time from 9:30 a.m. to 11:00 a.m.
1:53:17Eastern. Sometimes maybe I'll touch a
1:53:19little bit into lunch hour if the price
1:53:21action is, you know, bad in AM session.
1:53:22But yeah, typically it's just 9:30 a.m.
1:53:24to 11:00 a.m. Eastern. But it's good to
1:53:25note that 8:30 a.m. is when a lot of
1:53:28news is injected into the market and
1:53:29that's typically when, you know, price
1:53:30action could start looking good, right?
1:53:32And then yeah, we have lunch hour, which
1:53:34is from 11:00 a.m. to 1:00 p.m. Eastern.
1:53:35And then PM session is from 1:00 p.m. to
1:53:37400 p.m. Eastern. Lunch hour is
1:53:38typically again not that great. PM
1:53:40session also can be good, but not that
1:53:42great. Not all the time great. Now, how
1:53:44do you know that AM session is going to
1:53:46be bad? or how do you know that lunch
1:53:47hour is going to be bad or all these
1:53:48things? How do you know when to trade
1:53:50Blake? Like how do you know that you
1:53:51sometimes trade during lunch hour? Good
1:53:53question, right? So you can tell whether
1:53:55a session is typically going to be bad
1:53:57or it's going to be good based on the
1:53:59previous sessions that we had, right? So
1:54:00let's say for example, Asia session and
1:54:03London session move phenomenally. We
1:54:05have insane delivery on London Asia
1:54:07session. We move 400 points. We take out
1:54:09all the draws on liquidity, right? We
1:54:11have an insane run during London Asia
1:54:13session. Boom. What can you expect for
1:54:15New York AMP session? You can expect it
1:54:17to be worse price action. You can expect
1:54:19it to chop because all the volatility
1:54:21and all the liquidity was taken during
1:54:24London session. And what happens after
1:54:25that? We usually chop. And then what's
1:54:27going to happen? Probably the rest of
1:54:28the day is going to be bad. Probably
1:54:29lunch hour is going to be bad. Probably
1:54:30PM session be had bad. But let's say you
1:54:32know A.M. session was really bad.
1:54:34Sometimes we can have good lunch hour.
1:54:36So if AM session is like just really
1:54:38really choppy and really shitty. There's
1:54:40typically times where if we generate
1:54:41like a lot of liquidity during you know
1:54:43that 8:30 a.m. to 11:00 11:00 can
1:54:46sometimes start running out that
1:54:47liquidity. So let's say you know 9:30 to
1:54:4911 or 8:30 to 11 looks like this. 11:00
1:54:51can start cleaning up and you know
1:54:53sometimes even take out this price
1:54:54action and lunch hour can actually be
1:54:56clean, right? But um it's not all the
1:54:58time and it's not highest probability
1:54:59which is why I always recommend just
1:55:01sticking with one session. And that's
1:55:02like the main thing I want to get at in
1:55:04this video is to stick with one session.
1:55:06Okay, if you can't trade New York AM
1:55:08session because you're working, cuz you
1:55:09have a job, maybe you have to go to
1:55:11school, maybe you're still in high
1:55:12school, right? What I would recommend
1:55:14is, well, first there's always a
1:55:16solution, right? I started trading, you
1:55:17know, the year my senior year of high
1:55:19school going into college. So, I didn't
1:55:21really trade in high school, but I
1:55:22started trading in college and I would
1:55:24just, you know, center my classes around
1:55:26New York AM session. So, I would have
1:55:27classes. I had one class one time. Did I
1:55:29have a class before uh New York AM
1:55:31session? I can't remember. I think I had
1:55:32one biology class before. Anyways, but I
1:55:34would usually just stack my classes
1:55:36around New York AM session. So, anytime
1:55:38after 11:00. So, I would make sure I'd
1:55:39do my college classes like that if
1:55:41you're still in college or if you have a
1:55:42job, try to, you know, do that. But if
1:55:44you can't do that and you're working
1:55:45full-time, what I would recommend is
1:55:47trading either London session or
1:55:48sometimes even PM session can be good.
1:55:50But sticking to one session is the main
1:55:52thing I want to get out of this video.
1:55:53Again, I'm sticking completely to New
1:55:55York AM session and sometimes a little
1:55:57bit of lunch hour, but I back test this
1:55:59like chronically. And this is all I back
1:56:00test. All the data I get, all the
1:56:02statistics I get is based off of New
1:56:04York AM session and based off of, you
1:56:06know, a little bit of lunch hour. So,
1:56:07that's the only sessions I'm going to be
1:56:09trading, right? I have no data on London
1:56:11session and Asia session. So, I'm not
1:56:13going to be really skilled when it comes
1:56:14to that. And I'm probably going to have
1:56:16a much lower win rate when it comes to
1:56:18trading Asia session and when it comes
1:56:19to trading London session. So, am I
1:56:20going to trade those sessions? Stick to
1:56:22whatever you feel comfortable with based
1:56:24on whatever you've back tested. Okay?
1:56:26And again, if you can only trade during
1:56:27PM session, trade PM session, but back
1:56:30test the [ __ ] out of it. Understand all
1:56:31of its nuances, understand all of its
1:56:33tendencies, and then um stick with that.
1:56:35And then maybe you can always implement
1:56:37some New York AM session in your back
1:56:38testing. I would say for sure, just so
1:56:40when you are able to, you know, get time
1:56:42off from that job and you have some days
1:56:44off or you maybe change your classes and
1:56:46then you can trade, you know, this is
1:56:48definitely by far the best session. So
1:56:49it would always be ideal to be trading
1:56:51during this session. I remember when I
1:56:53was working my job, I had New York AM
1:56:54sessions. Sometimes I would have shifts
1:56:56during AM session and I would literally
1:56:58just like set myself alerts. So I would
1:57:00like go on the chart literally like
1:57:01let's say I want to see this level get
1:57:03hit to take shorts. I would just set an
1:57:05alert here. Boom. And then I would heal
1:57:07my phone buzz in my pocket. I'll be
1:57:08like, "All right, bet. I'm going to go
1:57:09to the bathroom, wait for my setup to
1:57:10present itself, take like a 10, 15
1:57:12minute freaking bathroom break, have my
1:57:14boss be knocking on the bathroom like,
1:57:15"Yo, are you good?" and then take my
1:57:17trade and then um lose money probably
1:57:19because yeah, [laughter] but I was
1:57:21unprofitable. But uh yeah, that was
1:57:23typically like what I was doing when I
1:57:24was working at my job. Fortunately, I
1:57:25was able to center my shifts around that
1:57:28and then I was in college and all that
1:57:29stuff. Anyways, holy freaking yap, dude.
1:57:31I'm yapping my bones off here. Let's get
1:57:33into the actual charts, though. Let's
1:57:34get into some chart examples. All right,
1:57:36so now we're on the charts here and you
1:57:38see that I have these boxes up where it
1:57:40says Asia and London session. Okay, if
1:57:43you guys watched the initial like video
1:57:46at the start where I was setting up
1:57:47Trading View, you guys already have this
1:57:49indicator on ICD kills and pivots and
1:57:51you already have these things selected.
1:57:53So, make sure you go back if you haven't
1:57:55if you skip through that for some reason
1:57:57and you didn't watch through the setup
1:57:59video, but I have all these indicators I
1:58:01was talking about and yeah, ICD kills in
1:58:03the pivot is what I use to show the
1:58:04sessions, right? We have Asia session
1:58:06here. This is from 8:00 p.m. to 12:00
1:58:08a.m. and this is then where True Day
1:58:09open is, right? So true day open really
1:58:11really important that you mark that it's
1:58:13a good area of rejection sometimes but
1:58:15yeah you can see that Asia session in
1:58:16one session it had some movement but it
1:58:18wasn't the best right we moved around 50
1:58:20points during London around 50 points
1:58:22during Asia and we had some movement
1:58:24after that but where we really started
1:58:26seeing the most movement is during when
1:58:28New York AM session right we had a lot
1:58:30of movement really that 9:30 candle
1:58:32already moved us 130 points we took out
1:58:35all these draws on liquidity all these
1:58:37sellside liquidity pools all the way
1:58:38here pretty much in 5 minutes, right?
1:58:40And what took the whole entire Asian
1:58:42London session got rinsed in literally 5
1:58:44minutes with New York AM session. So,
1:58:46this is typically what you'll see.
1:58:47You'll typically see London and Asia
1:58:49session have a little bit worse of price
1:58:50action and then New York AM session be a
1:58:52little bit better. And you can see we
1:58:53just ended up dumping. We took out all
1:58:55those draws and liquidity. And yeah, I'm
1:58:57going to get into liquidity in the next
1:59:00liquidity part two and I think the next
1:59:01lesson. But for now, what I want you
1:59:03guys to know is that sessions and times
1:59:05like this and the lows and highs of
1:59:07different sessions are great draws on
1:59:09liquidity. What I mean by that is
1:59:11they're great targets and they're also
1:59:12great areas to look for reversals off,
1:59:14right? So London session, you can see
1:59:16that we have London lows here. We end up
1:59:18trading towards that and taking that out
1:59:20and then boom, what do we get? A nice
1:59:22reaction from that. You can see we end
1:59:23up taking out London lows here. London
1:59:25lows, we end up taking it out and you
1:59:27can see we get a nice reaction off that.
1:59:28So, we always are usually getting some
1:59:30sort of reactions off of session
1:59:32liquidity. We also have Asia lows here.
1:59:34What do we do? Take out Asia lows. Bada
1:59:36bing, bada boom. And what do we do? We
1:59:38also get a nice reaction off that. So,
1:59:40it's great areas of draws on liquidity,
1:59:42meaning like great targets, great places
1:59:44to be targeting and taking your
1:59:46takeprofits and also great places to be
1:59:48looking for reversals off of and taking
1:59:50trades off of as like key levels. So,
1:59:52make sure you have this indicator on and
1:59:54make sure you're drawing out your levels
1:59:56every single day. I'm always drawing out
1:59:58my London, my Asia lows, my Asia highs,
2:00:00and seeing what we do in the overnight
2:00:02session. I'm not going to get too much
2:00:04into daily profiles in this lesson. Um,
2:00:06and I don't really know if I'm going to
2:00:07go over it in this boot camp, but you
2:00:09just have to know that, you know, if
2:00:10London Asia session, again, like I was
2:00:11saying, was bad and bad price action,
2:00:13New York AM session is probably going to
2:00:15go for that liquidity on London Asia
2:00:16session. or if we have great price
2:00:19action during the Asia session and
2:00:20London session, then we're probably not
2:00:22going to go back to those lows and
2:00:23either the price action will be bad or
2:00:25we'll just continue the trend during
2:00:26Asia or London session, right? So,
2:00:28that's just something to note. And uh
2:00:29let's just keep moving on, right? We can
2:00:31keep skipping through. We can look
2:00:32through the day after this, right? And
2:00:34then we can see what does lunch hour and
2:00:36PM session do? Absolutely nothing,
2:00:37right? Because what did we have? We had
2:00:39really good movement during AM session
2:00:41where we dumped around 170 points. We
2:00:44had really great movement, really clean,
2:00:46and then what's lunch hour and PM
2:00:48session going to be? Probably a lot
2:00:49worse price action. Sometimes we get
2:00:51like spikes of volatility here and
2:00:52there, but it's just not the best to be
2:00:54trading during this time. All right,
2:00:55let's look at another day. Right, here's
2:00:57Asia session opening up. Now, we have
2:00:58some movement. London session also moves
2:01:00quite a bit, right? It's not like the
2:01:01worst session, but we moved around 50
2:01:03points and pretty much the same thing.
2:01:05Moved around like 70 points during uh
2:01:06Asia session, London session. Now, let's
2:01:08look at what New York AM session does.
2:01:10Boom. You see, I mean, it's pretty much
2:01:12the same exact thing that happened
2:01:14yesterday. It's literally the same exact
2:01:16thing that happened yesterday, just to
2:01:17the upside now, right? So, this is
2:01:18typically like that New York reversal
2:01:20that you're going to see. This is like
2:01:21typically the daily profile you're going
2:01:22to get. Like the classic daily profile
2:01:24that you're going to see. But yeah, we
2:01:25end up just ripping up here and taking
2:01:27out these draws on liquidity and these
2:01:28draws on liquidity because this was just
2:01:29a lot of accumulation. What did New York
2:01:31AM session do? Manipulate, distribute.
2:01:33Bam. 150 points in again like five
2:01:36freaking minutes. We end up running
2:01:37through all these highs. And what did we
2:01:39react off of? If you look at that New
2:01:41York AM session lows, so we racked it
2:01:43off of that draw on liquidity there and
2:01:45that sellside liquidity. And then we
2:01:46started targeting these highs and these
2:01:48draws on liquidity here being London
2:01:50session highs right there and then also
2:01:52being what Asia session highs right
2:01:55around there. And you see that we just
2:01:57run through all these draws and then we
2:01:59react off it and then what do we get?
2:02:00Displacement back lower. So you can see
2:02:02that you can kind of catch reversals off
2:02:04these areas as well as target these
2:02:06areas of liquidity. Right? So that's
2:02:08just typically how a price action moves.
2:02:10I mean there is also days though where
2:02:12we can have pretty big moves overnight.
2:02:14Um you can see like New York PM session
2:02:16also moved like again this is not every
2:02:18single day where price action is going
2:02:19to look like this. But let's see Asia
2:02:20session here. This was London again
2:02:22pretty choppy day and then New York AM
2:02:24session looks a lot better right? It
2:02:26looks a lot cleaner. So that's again
2:02:27typically how it's going to look is like
2:02:29Asia session is going to move you know
2:02:31around 50 points. This day wasn't that
2:02:32great in general either overall but like
2:02:34we did have I would say cleaner movement
2:02:36right? We had more displacement towards
2:02:38a more obvious area, but we actually
2:02:39ended up leaving London lows. I'm
2:02:41curious to see if we had an SMT. No, we
2:02:43ended up just leaving London lows. So,
2:02:45again, not every day we're going to have
2:02:46like super clean deliveries on price
2:02:48action. Okay, this was Christmas Eve, so
2:02:50it wasn't even like a validated trade. I
2:02:52thought I went more back. I want to try
2:02:53to go more back to see if um like you
2:02:55guys can just see how price action is.
2:02:57For example, look at New York AM session
2:02:58here, bro. We just dumped freaking 400
2:03:00points. And what did London session do?
2:03:02Move around 100 points. 100 points. And
2:03:04the New York AM session dumps 400 points
2:03:06taking out all of this London session
2:03:08lows, draws in liquidity, all these
2:03:09withdraws in liquidity. So yeah, again,
2:03:10that's typically how the market's going
2:03:12to move is it's typically going to be
2:03:13worse during Asia, London, and PM and
2:03:16lunch hour and then New York AM sessions
2:03:18typically when the draws and the
2:03:19volatility is going to be the best,
2:03:20which is when I'm going to trade. Now, I
2:03:22then want to go into um news. Let's go
2:03:25into news because that is a pretty huge
2:03:26factor when it comes to time and
2:03:28understanding when news drops and all
2:03:30that stuff. So, let's head over to Forex
2:03:33Factory. Let's do it. All right. So, I
2:03:34want you guys to do is go on your web
2:03:37browser and search up Forex Factory.
2:03:40Okay, Forex Factory. Okay, so Forex
2:03:42Factory is where we're going to see all
2:03:43the news. I check my Forex Factory every
2:03:46single morning. And this is what you
2:03:47have to do. Okay, this is the news for
2:03:49the week. Um, it probably doesn't look
2:03:50like this on your screen yet. So, let me
2:03:52run you through my settings. Okay, so
2:03:54you go up here and you click this button
2:03:56right here. Expected impact. Yeah, I
2:03:58honestly should have orange folder on
2:03:59because sometimes some orange folder
2:04:01does provide some news. So, put that red
2:04:03folder on, put that orange folder on,
2:04:05and put only USD. Okay, you probably
2:04:07have all these [ __ ] selected right now.
2:04:09Unccclick, click none, and then just
2:04:10click USD. Okay, that's it. It's all you
2:04:12need. Um, and have red folder, orange
2:04:14folder on. You don't really need orange
2:04:15folder, but whatever. Just have them
2:04:17both on. Click apply filter. And bada
2:04:18bing, bada boom. Here is the news that
2:04:20we have for the week. Okay, so we had
2:04:22PMI at 10 a.m. today. Now, with news, I
2:04:25don't recommend trading before news. And
2:04:28I recommend just waiting for news to
2:04:30drop and trading after news. Like 5
2:04:32minutes after news, I would give
2:04:33yourself that window. Like, I mean, if
2:04:35you are going to trade before news, make
2:04:36sure it's not like right before like a
2:04:38minute before news drops because you're
2:04:39obviously probably going to get
2:04:40manipulated and stopped out. I would say
2:04:41give yourself like a 5-minute window. If
2:04:43it's, you know, like 9:40 and you're
2:04:45taking a trade and there's news at 10:00
2:04:46a.m., I would say it's valid. But just
2:04:48make sure to like recognize how price
2:04:50action is. Typically what usually
2:04:52happens is price action likes to be
2:04:53choppy before news drops and then news
2:04:55drops and then it cleans it up. Or
2:04:57sometimes price action is just really
2:04:58clean and the news will just deliver to
2:04:59the draw. So yeah, we had news today at
2:05:0210:00 a.m. Today was just overall a
2:05:03super super choppy day. So there was
2:05:05really nothing from today that was like
2:05:07good. But you can see that we had news
2:05:10drop at 10 a.m. And you can see we kind
2:05:11of had a pretty nice candle. This isn't
2:05:13like the most significant news day, but
2:05:15the candle happened pretty fast. I mean
2:05:17it was a 40 point candle. this news
2:05:18which really wasn't that significant at
2:05:20all. Going back to Forex Factory here,
2:05:22right, we have a couple different things
2:05:24I want you guys to look at. So, we have
2:05:26non-form employment change. You don't
2:05:27really need to worry about this. Uh PMI,
2:05:29Jolts jobs openings. This is um you
2:05:32know, similar to the Monday's what's it
2:05:34called? Monday's news event. But yeah,
2:05:36Jolts jobs openings. This is probably
2:05:38going to be another pretty wiki candle.
2:05:40Sometimes it can be big, sometimes it
2:05:42can be small. You really don't know with
2:05:43like PMI and job openings and stuff like
2:05:45that. Unemployment claims happens at
2:05:468:30. And then we have Friday, the first
2:05:49Friday of every month is NFP. So NFP is
2:05:52a really, really strong mover in price.
2:05:55It's a lot of volatility, a lot of
2:05:57injection in the market. So make sure
2:05:59you know NFP day is a really strong day.
2:06:01Make sure you know you're lowering your
2:06:02size. Make sure you're paying attention
2:06:03to how many lots you're using cuz it's
2:06:05probably going to be a lot more
2:06:06volatility. Probably trade micros
2:06:07instead of minis. I would recommend
2:06:09that. And then we also have consumer
2:06:10sentiment at 10. So a lot of newses this
2:06:12week. I'm going to be pretty not risk
2:06:14off but like I'm going to be you know
2:06:15you know look you know being careful I
2:06:17would say but um yeah news doesn't mean
2:06:19guys that I know a lot of people are
2:06:20like don't trade reder news. I hear that
2:06:22a lot from a lot of traders but
2:06:24personally I love trading red folder
2:06:25news. I love trading when the market is
2:06:27volatile and when it's providing good
2:06:29opportunity. I don't like trading when
2:06:30the market is not volatile and not
2:06:32providing good opportunity and days
2:06:34where there is no news. Usually the
2:06:35market is a lot worse. So that's just me
2:06:37you know it's not of course every day
2:06:38because for example today what was the
2:06:40market doing? Absolute [ __ ] nothing.
2:06:42So yeah, I mean sometimes news can do
2:06:44nothing but typically news moves the
2:06:46market. And then we have CPI and we have
2:06:49PPI. CPI and PPI. I mean it usually
2:06:52drops Tuesday, Wednesday, Thursday and
2:06:54Friday. Usually when whenever those days
2:06:56are sometimes it's like Wednesday and
2:06:58Thursday. Sometimes it's Thursday,
2:06:59Friday, sometimes it's Tuesday,
2:07:00Wednesday. This month it's Tuesday and
2:07:02Wednesday. We have core CPI. So this is
2:07:04a really another important news event to
2:07:06be paying attention to CPI. I would say
2:07:08pay attention to CPI NFP. These all drop
2:07:10at 8:30 a.m. Eastern. So know that this
2:07:12all drops 8:30 a.m. Eastern. NFP
2:07:14whenever Powell speaks. So you'll
2:07:16sometimes see Powell speaking. Let's see
2:07:18if we have that anytime soon. Hello
2:07:20Powell. Are you alive, dude? Well, POW
2:07:22like some like come on. FC is also
2:07:25another one. 2 p.m. That happens when
2:07:27FOMC drops. 2 p.m. 2:30. Not meeting
2:07:30minutes though. Like FOMC. Okay, where's
2:07:32FOMC? Command F. FOMC. Here we go. FOMC
2:07:35statement is what I want you guys to pay
2:07:36attention to. Meeting minutes sometimes,
2:07:37but like really pay attention to FOMC
2:07:39statement. This is the only red folder
2:07:41news that you guys should be paying
2:07:42attention to during PM session is FOMC.
2:07:45And I personally don't trade FOMC days.
2:07:47It's very rare that I do, but typically
2:07:50the price action is really bad during AM
2:07:52session. And the move is to usually
2:07:54trade just FOMC's PM session, but I find
2:07:57that I have just a really low win rate
2:07:59trading FOMC during PM session. And I
2:08:02don't trade that well during FOMC PM
2:08:03session. So I usually just skip this day
2:08:05as a whole. But sometimes, I mean, I
2:08:06I'll still hop on during the morning
2:08:08because sometimes it could be clean. But
2:08:09what we usually do whenever we have news
2:08:11is again we just like save liquidity for
2:08:14when that news drops. So let's say we
2:08:15have like a really prominent sellside
2:08:16pool here, right? And then let's say,
2:08:18you know, this is AM session. We're
2:08:19trading, we're trading, then we do
2:08:21something like this. And it's like, oh
2:08:22my god, why didn't we take this
2:08:22liquidity pool in AM session? And then
2:08:24it's like, damn, why didn't we take that
2:08:25during AM? And then what does 2 p.m. and
2:08:272:30 and FOMC do? Boom. We take that
2:08:29liquidity. So we usually just like save
2:08:30a lot of like lows and highs and we
2:08:32don't take liquidity and we save it for
2:08:34news. And it's the same thing for like
2:08:36CPI and PPI. So that's why I don't
2:08:38recommend like trading before news can
2:08:39be risky and trading like seconds right
2:08:42after news drops is also very risky
2:08:43because the market is going to need to
2:08:45like accumulate you know rebalance
2:08:46itself and uh then we can keep moving.
2:08:49So I would say you know wait like 5
2:08:50minutes give yourself again that window
2:08:52of time before trading and um yeah the
2:08:54same way I was talking about sessions
2:08:57and how those are good draws on
2:08:58liquidity. I'm going to show you guys
2:09:00something called data lows and data
2:09:02highs. And I'll get more into this soon
2:09:04when I'm going to be talking about
2:09:05liquidity part two in the next video,
2:09:06but I'll talk a little bit about that.
2:09:08And basically what you'll usually see
2:09:10with 8:30 a.m. news like CPI, with PPI,
2:09:13with NFP, right, with these big news
2:09:15events, unemployment claims is we'll
2:09:16usually create some sort of big candle,
2:09:18right? And this is you'll usually see a
2:09:20data wick, which is just a candle with a
2:09:23really fat wick, right? Where you'll see
2:09:25a candle like this, and this is the
2:09:26body, but then the wick will be like
2:09:28pretty massive. And what this is seen as
2:09:30is just an imbalance in the market. So
2:09:32price tends to trade towards these
2:09:34imbalances to fill this wick and take
2:09:36out that draw liquidity. Right? So this
2:09:38is again great draw on liquidity as well
2:09:39as great area of rejection. Right? Just
2:09:41overall a great target to have. So just
2:09:43a great area to know where price is
2:09:45moving to. So make sure you mark out
2:09:46your data highs and data lows. And I'll
2:09:48show you kind of how to do that right
2:09:49now. That's pretty much going to be it
2:09:50for news. Again, main ones to look at is
2:09:53CPI, PPI, FOMC, unemployment claims, and
2:09:56you know, at 10 a.m. news, that 9:45
2:09:58news is also a thing. So, you know,
2:10:00there's usually news from 8:30, 9:45,
2:10:0310:00 a.m., and 2:00 p.m. That's really
2:10:05all the times of news is. But, um, yeah,
2:10:07let's, uh, get back on the chart and
2:10:08I'll show you guys the data wicks and
2:10:10then I'll wrap up this episode. So, I'll
2:10:11show you guys what news does. As you can
2:10:13see here, this is kind of just the range
2:10:14we're trading in. And on this day, we
2:10:16had CPI at 8:30 a.m. Eastern. So, the
2:10:19market is just chopping and it's waiting
2:10:21and it's waiting and it's waiting and
2:10:22what does news do? We end up opening up.
2:10:24CPI opens up at 8:30 a.m. Eastern right
2:10:26here and bada bing bada boom we have a
2:10:28huge massive candle. So, you usually see
2:10:30these huge massive candles at around
2:10:328:30. You see we have just a 100 point
2:10:34move in 1 minute and then we have this
2:10:36data wick that gets created. This is a
2:10:38great draw on liquidity to have is a
2:10:40data wick. So, we'll usually create some
2:10:43sort of wick that is you know abnormal I
2:10:45would like to say. Um, and this is that
2:10:47abnormal wick that you see. And this is
2:10:49called a data high, right? And price
2:10:52retraces into this bullish rally gap
2:10:55right here, as you can see. And what do
2:10:57we do? We end up trading up back towards
2:10:59those data highs. So you can, you know,
2:11:00end up catching some long positions
2:11:02towards that. And these are great draws
2:11:03and liquidity to have. But, um, yeah,
2:11:04that's just one example of what a news
2:11:06does. Um, I'll show you another day. So
2:11:08again, guys, not only does news happen
2:11:09at 8:30 a.m., 9:45, 10:00 a.m., all
2:11:13those times in the morning, there's also
2:11:14news that happens in PM session. And as
2:11:16you can see here on this day was
2:11:17Wednesday, December 10th, we had FOMC
2:11:19statements released at uh 2:00 p.m.
2:11:21Eastern time. And as you can see, 2 p.m.
2:11:23opens and we have another massive
2:11:25candle, right? And we end up creating
2:11:26some data wicks. You can mark these out
2:11:28on the 1 minute time frame. Your data
2:11:30wick, your data low, your data high. And
2:11:31these are just great areas of targets.
2:11:33You can see we have a data high here. We
2:11:35also have a data low, right? But yeah,
2:11:37just great areas to target. Look to
2:11:39target either of these areas. Typically,
2:11:40we'll have some move like this where we
2:11:42can go back to the highs and then we'll
2:11:43go back to the lows if we get enough
2:11:45displacement or vice versa, lows to
2:11:47highs or highs and continue higher,
2:11:49right? But yeah, we ended up trading
2:11:50towards those data highs. And I think we
2:11:52just ended up ripping up, ripping up,
2:11:54ripping up, chopping around, chopping
2:11:55around. We edged those data lows and um
2:11:58yeah, that's pretty much the price
2:11:58action for this day. And that's pretty
2:12:00much going to cover it all on news,
2:12:02though. Make sure to mark out your data
2:12:03lows, your data highs. I'll go into time
2:12:06liquidity, you know, liquidity part two
2:12:08in the next lesson, but I just want to
2:12:09give you guys a brief overview on all of
2:12:11that so you guys are paying attention to
2:12:13when news is dropping and how to react
2:12:15to that and then of course all the
2:12:17sessions that we talked about before.
2:12:18Yeah, that is pretty much going to wrap
2:12:20up this lesson. Hopefully you guys
2:12:21enjoyed and I'll see you guys in the
2:12:23next lesson when we talk about I think
2:12:25we're going to do liquidity part two or
2:12:26we're going to do SMTs. I'm not sure
2:12:28yet. I'm going to think about it for a
2:12:29second and then I'm going to come back
2:12:30and record another part. But um yeah,
2:12:32that's going to wrap it up and I'll see
2:12:34you guys in the next one. What is going
2:12:35on? Welcome to lesson number seven in
2:12:37this free course. For this lesson, we're
2:12:39going to be going over liquidity. But
2:12:40Blake, we already did liquidity. Well,
2:12:42Timmy, it is time for liquidity part
2:12:45number two. Okay, we're going to be
2:12:46talking about advanced ICT liquidity
2:12:48concepts because we talked about in the
2:12:50last episode just basic, you know,
2:12:52liquidity. For liquidity part one, we
2:12:54talked about regular buy side and sell
2:12:55side liquidity. But now we're going to
2:12:56be talking about the highest probability
2:12:59liquidity pools in the market and the
2:13:01only ones that I pay attention to. But
2:13:03here it is. Okay, liquidity part two.
2:13:05Absolutely beautiful. Let's get into the
2:13:07first liquidity pool. Okay, the first
2:13:09liquidity pool I want to be covering is
2:13:10relative equal highs and lows and also
2:13:14equal highs and lows. Okay, this is such
2:13:17a great great concept guys. Relative
2:13:19equal highs and lows and equal highs and
2:13:21lows. It is basically the foundation of
2:13:24you know buy side and sell side
2:13:25liquidity and the reasoning behind this
2:13:27right and this is what we kind of
2:13:28briefly touched on with the first
2:13:30episode of liquidity is that you know
2:13:32the market tends to have support and
2:13:35resistance traders a lot in the market
2:13:37right a lot of traders are trading
2:13:38support and resistance meaning what
2:13:39there's a lot of liquidity resting at
2:13:41areas that traders see as support and
2:13:43resistance for example they see this
2:13:45area here as resistance why because they
2:13:48see this area has already rejected has
2:13:50already bounced from it once so what do
2:13:51they think is going to happen. They
2:13:52think it's going to bounce from it again
2:13:54and they're going to enter into the
2:13:55market here and they're going to put
2:13:56their stop loss around here and yeah,
2:13:59they think that this is just going to be
2:14:00like a big support level, right? And
2:14:02what ends up happening is they get
2:14:03absolutely cooked on this and they get
2:14:05stopped out. Now, what's also happening
2:14:06at these areas is what a lot of people
2:14:08are entering into the market, right?
2:14:10Right. So, a lot of people are getting
2:14:11into positions here. Not only getting
2:14:13into positions down there, but also
2:14:14getting into positions up here and
2:14:16entering in positions down, you know,
2:14:18setting sell stops and stuff because
2:14:19they think this is a breakout after
2:14:21that's happened. What's also resting
2:14:22here? Of course, stop losses because not
2:14:24only is there one swing high here,
2:14:26there's two. And this is actually called
2:14:28a failure swing high, right? So,
2:14:30relative equal highs is basically the
2:14:32same thing as failure swings. Meaning
2:14:33like a failure swing is basically when
2:14:35one high doesn't sweep out the next high
2:14:37or like this high doesn't sweep out the
2:14:39previous high. Right? If this swept out
2:14:40this high, then this would not be a
2:14:41failure swing. But since we didn't, then
2:14:43this is a failure swing, right? And it's
2:14:45basically just in the name, relative
2:14:46equal highs is relatively equal. And
2:14:48then equal highs is perfectly equal. And
2:14:50this is an example of perfectly equal
2:14:52highs. And we can draw it out like this.
2:14:54This is even a stronger magnet in price.
2:14:56When you see like perfect equal highs on
2:14:57the 15-minute time frame, when we start
2:14:58trading towards that, know that that
2:15:00shit's going to get hit. It's a really
2:15:01high probability that that's going to
2:15:02get hit. And the same thing with equal
2:15:04lows, right? And oftent times with all
2:15:06these concepts I'm going to teach guys,
2:15:08we will typically have some sort of
2:15:09reaction from these levels as well as
2:15:11you know it's great targets but it's
2:15:12also great places of key levels to get
2:15:15reversals off. But yeah, we also have
2:15:16this right here. Boom. Beautiful.
2:15:18Absolutely beautiful level right here.
2:15:20Relative equal lows and people see this
2:15:22and they're going to enter into some
2:15:23longs and enter some longs. So boom,
2:15:25stop losses here. Where's also stop
2:15:27losses? Here. Where is more stop losses
2:15:29here. So just a huge pool of liquidity
2:15:31is resting at these relative equal lows
2:15:33and also people are getting entered into
2:15:34positions. So they are getting [ __ ]
2:15:35and boom just getting people into the
2:15:37market getting people then also out of
2:15:39the market and uh yeah relative equal
2:15:41highs and lows is just a great concept
2:15:43you should learn and we'll go into now
2:15:44some chart examples. All right so let's
2:15:46take a look at this day that was last
2:15:49week. I actually took this trade. Okay
2:15:51so I did take this trade. It was a short
2:15:53position. Now why am I bearish in this
2:15:56scenario? Well we have relative equal
2:15:58lows. This is our draw on liquidity.
2:16:00This is a really high probability
2:16:01liquidity pool. What is relatively close
2:16:03again, guys? What is it? It's when we
2:16:05leave a low that doesn't sweep out
2:16:07another low. And then we have a move
2:16:09like this. Well, this move makes
2:16:11absolutely zero sense. Why? Because we
2:16:13didn't sweep out this external this
2:16:15prominent low that was resting here,
2:16:16right? We might have swept out this
2:16:18little [ __ ] low, but that didn't
2:16:19make sense, right? We left relative
2:16:20equal lows here. Okay? So, this low is
2:16:23really prominent as you can see on the
2:16:24higher time frame. This is what, like an
2:16:26hourly low, as you can see. And what did
2:16:28we do on that hourly low? We left
2:16:29relative equal, right? And then we are
2:16:31still higher time frame, really bearish
2:16:32as well. That also has to be taken into
2:16:34account. So we ended up trading up,
2:16:36hitting a 5minute bearish rally gap.
2:16:38Bada bing, bada boom. Reacted off that.
2:16:40And I'm not going to get too much into
2:16:41the entry model here. But you can see
2:16:42that we did end up trading and targeting
2:16:44those relative lows and eventually boom,
2:16:47we hit them, right? So really nice trade
2:16:49here. And this is what you want to be
2:16:51targeting, right? A lot of people are
2:16:52seeing this as what? Support, which is
2:16:54not what you want to be doing. you want
2:16:56to be targeting that instead of looking
2:16:58at this as support. This is just stop
2:17:00losses. This is simply just a lot of
2:17:01stop losses resting here since we left
2:17:03failure swings here. Okay, so a really
2:17:05great draw here and um a really great
2:17:07trade and that's relative lows and highs
2:17:08for you. Let's move on to the next
2:17:10liquidity pool liquidity concept. All
2:17:12right, the next concept I have here is
2:17:14low resistance liquidity or LRL as
2:17:17people refer to. Some people say LR um I
2:17:19sometimes say LR but like I don't know
2:17:21LRL um or trend line liquidity it's
2:17:23often referred to as. Okay, so you'll
2:17:25hear these names and it's pretty similar
2:17:27to the failure swings and the relative
2:17:30equal lows and highs except it's just a
2:17:32lot of them, right? Where we have a
2:17:34bunch of failure swings and it's like
2:17:36the name says, it's trend line liquidity
2:17:38where we have a bunch of trend line
2:17:40here, right? And what is by the books
2:17:43type of trading? Well, it's trend lines,
2:17:44right? A lot of people trade with trend
2:17:46line. So, what are we doing? Right? When
2:17:47we see a trend line, what are we doing?
2:17:49Oh, I'm putting a stop loss here. You
2:17:50know, as a trend line trader, I'm going
2:17:52here. And then another tra trend line
2:17:53trader sees this and it's like, "Oh,
2:17:55we're bouncing off the trend line. I'm
2:17:56putting my stop loss here. I'm entering
2:17:58here." Another trend line trader sees
2:17:59this. Oh, I'm getting in here. And then
2:18:01it just it's a repeating pattern of so
2:18:03many trend line traders getting into the
2:18:05freaking markets. Yo, that sounded like
2:18:07the packet yo guy niche reference.
2:18:08Anyways, right. And from here, we're
2:18:11looking at this chart and what do we
2:18:12see? Oh, when I'm looking at this chart,
2:18:15all I see is freaking stop losses is
2:18:17stop losses is stop losses and all this
2:18:20cash resting here, right? because so
2:18:22many people are entering the market and
2:18:23so many people have their stop loss
2:18:24here. So many swing lows. When we have a
2:18:25bunch of swing lows, guys, this is a
2:18:27great great great target and uh great
2:18:30liquidity pool. So this is your low
2:18:32resistance liquidity. And same thing for
2:18:33the upside. A lot of people are shorting
2:18:35here. A lot of people are taking their
2:18:36shorts and a lot of people are getting
2:18:37in here and they keep seeing, oh well,
2:18:39we're bouncing off this trend line.
2:18:40Well, that is not good because we are
2:18:42going to run your trend line in
2:18:44literally a couple candles. So you
2:18:46better watch out. But um yeah, this is
2:18:48your trend line liquidity. Again, don't
2:18:50be trying to take trades with this. It's
2:18:53really bad to have stop losses with
2:18:56unprotected stop losses, meaning this.
2:18:57And when I say like unprotected versus
2:18:59protected, and you know, high resistance
2:19:01versus low resistance, that's also a
2:19:03great term that I want you guys to know
2:19:04about is high resistance liquidity is
2:19:06when we end up sweeping out a high and
2:19:09we end up like getting really good
2:19:11displacement from it. So, for example,
2:19:12this right here is a high resistant
2:19:14high. Why? Because it swept out this
2:19:16high. And these lows are low resistant.
2:19:18Why? because it didn't sweep out this
2:19:19low and it didn't sweep out this low and
2:19:20it didn't sweep out this major low.
2:19:22Right? So, this high is really high
2:19:23resistant and then where's another
2:19:24where's a high resistant low in this
2:19:26example. Well, right here we have a high
2:19:27resistant low. Why? Because we swept out
2:19:29liquidity. Maybe we swept out let's say
2:19:31some relative lows over here and we
2:19:33swept out this boom bada bing bada boom.
2:19:35This is a really high resistant low. So,
2:19:36that's what people say like high
2:19:37resistance versus low resistance. It
2:19:39just simply means is it you know did we
2:19:41hit a key level and did we get a major
2:19:43sweep on liquidity or did we leave
2:19:45liquidity behind um and make it low
2:19:47resistance. So yeah, you should always
2:19:49have your stop losses not like this, but
2:19:51instead at high resistance liquidity,
2:19:53and then you should be targeting low
2:19:55resistance liquidity. So I'm going to
2:19:56show you guys a chart example so you
2:19:58guys understand this a little bit
2:19:58better. But uh yeah. All right, guys.
2:20:00Taking a look at this chart, we have all
2:20:02right, we can clearly see, right, we
2:20:04have some sellside liquidity resting
2:20:06right here. And what do we have above
2:20:08us? Well, we have a bunch of failure
2:20:10swings, right? You can see we're on like
2:20:13the 5minute time frame. We have a high
2:20:15right here that and then we have a high
2:20:16right here. And then we have another
2:20:17high. And then we have another high. And
2:20:19all these prominent swing highs here
2:20:21generated low resistance liquidity.
2:20:23Right? So a lot of stop losses here are
2:20:26being, you know, put into the markets,
2:20:28right? And a lot of trend line traders
2:20:30are getting in here. A lot of people are
2:20:31just putting their stop losses here. A
2:20:32lot of people are getting in here. And
2:20:33this is an example of some like higher
2:20:35time frame trend line liquidity, right?
2:20:36You can clearly see this on like the 5m
2:20:38minute and like the bigger time frame
2:20:39like the 15-minute as well. You can
2:20:40clearly see all the stop losses, right?
2:20:43And what can you see? Then we end up
2:20:45taking out a low right here. And you see
2:20:47that we have all of this low resistance
2:20:49liquidity. And what does the market end
2:20:51up doing? Trading and ripping through
2:20:53all of this low resistance liquidity. So
2:20:55it is a great draw on liquidity to have
2:20:57because the market usually rips through
2:20:59it pretty freaking fast. You usually see
2:21:01like low resistance liquidity runs is
2:21:03what they're called. When we run all
2:21:05this low resistance liquidity and these
2:21:06runs happen pretty fast, right? We have
2:21:08a LRL or low resistance run. Yeah. L RL
2:21:11L R L. Holy tongue twister. I'm going to
2:21:13shut the [ __ ] up. But that is that,
2:21:14right? And then usually we sometimes
2:21:16have a reaction off that, right? So all
2:21:18of these like liquidity pools and draws
2:21:20that I'm showing you guys in this lesson
2:21:22are really really great for not only
2:21:24targets, but also if you're aligning it
2:21:27with your higher time frame bias, this
2:21:28is a great area to be shorting from.
2:21:30Like, oh, we just took all this low
2:21:31resistance liquidity and this leg bro,
2:21:33perfect short. Really nice, right? So
2:21:35that's an example some resistance
2:21:36liquidity. I'll show you another example
2:21:38just of like some lower time frame
2:21:39really quick cuz I remember like a trade
2:21:41I took when I was in Tulum. Let me show
2:21:42you this really quick. So, this is a
2:21:44trade I took. I journaled this, right?
2:21:45And as you I mean, this should have been
2:21:47a winning trade. Whatever. I got stopped
2:21:49at a break even. Lame. But this was
2:21:50really, really clear. Lower time frame,
2:21:52low resistance liquidity, right? As you
2:21:54can clearly see, we have like a lot of
2:21:56choppy trend line liquidity as you would
2:21:58say. And I don't know if they have the
2:21:5930 secondond chart with Trazone,
2:22:01whatever, but you can see we have some
2:22:02bi liquidity resting here. And what do
2:22:04we have? A bunch of swing highs are
2:22:06being put in. We have a swing high here.
2:22:07We have another high, you know, resting
2:22:09right here. Another high resting right
2:22:11here. here. And we have a bunch of these
2:22:12like highs, as you can see, just being
2:22:14put in without sweeping out other highs,
2:22:15right? So, there's no high resistance
2:22:17here. This is all low resistance. And
2:22:18then what are we doing to the downside?
2:22:19Well, we have low resistance. And I
2:22:21think this website just crashed. Don't
2:22:23know what's going on. I can't click
2:22:25anything. And uh yeah, but that's the
2:22:27example and let's move on to the next
2:22:29concept. Let's do it. All right. So, the
2:22:31next liquidity pool I have here is
2:22:32intermediate highs and lows. And
2:22:34intermediate high and low is simply when
2:22:36we have a high resting within a feral
2:22:39gap or a low resting within a feral gap.
2:22:41Now these intermediate highs and lows
2:22:42can also be I often you know see people
2:22:44being like is this a valid intermediate
2:22:46low like it's not valid because it's all
2:22:48the way down here. As long as the FV
2:22:49value gap still held and you know this
2:22:51is just a simple wick through and we
2:22:53didn't body close below this and this is
2:22:55a valid intermediate low right so
2:22:57typically it'll just look something like
2:22:58this though and we'll have an
2:22:59intermediate low. These are great
2:23:00targets because there's a lot of again
2:23:02stop losses resting here. Even me as a
2:23:04trader I'm trading here and I'm probably
2:23:05putting my stop loss at the intermediate
2:23:07low. So, I'm taking trades like this and
2:23:08then, you know, maybe I'll hit TP and
2:23:10you can also target back down those stop
2:23:12losses, right? Maybe some people are
2:23:13still holding their positions. And it's
2:23:14overall just a nice liquidity pool, a
2:23:16nice target is highs and lows resting
2:23:18within the markets. I really like
2:23:20intermediate highs and lows, not only
2:23:22for targets, but as rejection levels.
2:23:24It's typically a great area for
2:23:26rejection. You'll see. And I really like
2:23:28this because it's also paired with a for
2:23:30gap. So, this is honestly like my best
2:23:32my one of my favorite like key levels is
2:23:33like on the 5m minute, 15-inut time
2:23:35frame, hourly, 4 hour, daily, all those
2:23:37time frames. Like this is like a really
2:23:39really nice concept to be paying
2:23:40attention to. So, one of my favorites
2:23:42and I'll show you guys some chart
2:23:43examples right now. All right, so let's
2:23:44take a look at this chart right here.
2:23:46All right, we can clearly see that we're
2:23:48trading up. We're trending up towards
2:23:50what? We're inside of a big 4hour fal
2:23:53gap. Then what can you also see? We're
2:23:54inside of this big 1 hour gap, right?
2:23:56And this 1 hour gap has what? An
2:23:58intermediate high. Would you look at
2:24:00that? Right, this is a high resting
2:24:01within a feral valley gap. This is the
2:24:03high that's resting within the feral
2:24:04valley gap. And what can you also see?
2:24:06I'm going to start combining some
2:24:07concepts for you. What do we see below
2:24:08this? What do we see below this, guys?
2:24:10Hopefully, you said relative equal lows.
2:24:12If not, I want you guys to I don't know.
2:24:14I don't like that you didn't say that.
2:24:15If you didn't say that, but hopefully
2:24:16you did say that. We have some relative
2:24:17equal lows. Would you look at this? We
2:24:19have a low, a failure swing that didn't
2:24:21take out this last low, and then we had
2:24:23this large move that makes absolutely no
2:24:25freaking sense. So, what is this going
2:24:26to be? probably if we sweep out this
2:24:28liquidity. We sweep out this
2:24:29intermediate high right here. We get a
2:24:30boom ba boom and then we can go to
2:24:32there. Okay, back to what I was saying.
2:24:34Okay, so we have an intermediate high
2:24:35here, right? We can mark this out with
2:24:37an IT on the chart. Bada bing, bada
2:24:40boom. This is an hourly intermediate
2:24:41high. So, this is a 1 hour intermediate
2:24:43high. You guys will see me typically
2:24:44mark out things like this. And I'm going
2:24:46to be looking for shorts from this area,
2:24:48right? So, bada bing bada boom. And
2:24:49boom, we hit this. And what do we get?
2:24:51Oh, instantaneous freaking dumpage of a
2:24:54reaction right there. and you could have
2:24:55caught some banger shorts off of that
2:24:57intermediate high sweep. Something like
2:24:59this. Again, I'm not going to get too
2:25:01much in the entry model now, but maybe
2:25:03we'll start hinting a little bit at it.
2:25:04Maybe a little little inverse here, you
2:25:06know, little something like that. Maybe.
2:25:07I don't know. Not going to give you guys
2:25:08too much sauce, but yeah, you see this?
2:25:09What do we have? Relative equal lows.
2:25:12Ooh, and what do we just reject off of?
2:25:14The 1 hour intermediate high. And what
2:25:16do we see even more over here? A
2:25:1815-minute intermediate high. If we zoom
2:25:20in even more, right? And this is
2:25:21something that's really important that I
2:25:22want you guys to start paying attention
2:25:23to with like these liquidity pools and
2:25:25for value gaps and all that stuff is
2:25:26like don't just look if you see like a
2:25:284hour gap. This is some sauce here.
2:25:30Ready? Listen up. Just don't just look
2:25:31at the 4hour for Valley gap and when you
2:25:33see like a big gap like this. If you
2:25:35want a really accurate level of price
2:25:37and where we're going to be bouncing
2:25:38from, especially us traders that are
2:25:40trading on the 1 minute to 5 minute time
2:25:41frame like me, I'm going to zoom in to
2:25:43the 1 hour. And then not only the 1
2:25:44hour, I'm going to then zoom into the
2:25:4615-inut. And then would you look at
2:25:47that? where do we react off of a
2:25:4915-minute intermediate high? And that's
2:25:51how you get those kind of top tick type
2:25:52of entries. And uh yeah, I mean this is
2:25:54a beautiful example of what I was just
2:25:56teaching about relative equal highs,
2:25:57relative equal lows. And you guys are
2:25:58going to start seeing that liquidity and
2:26:01concepts like all these liquidity pools.
2:26:02And this is just how the market moves.
2:26:04It rebalances ranges. It creates
2:26:06liquidity, generates liquidity, it
2:26:07sweeps it out, and then it targets it.
2:26:09And this is just again how the market is
2:26:11moving. So this is a great example. And
2:26:13we'll move on to the next liquidity
2:26:15pool. Okay. London Asia highs and lows.
2:26:18These are your session liquidity pools.
2:26:20Really, really solid session liquidity
2:26:22pools, right? Asia highs is from when we
2:26:24just look at our indicator here, 2020.
2:26:27So, 8:00 p.m. to 12:00 a.m. And then
2:26:28London is from 2:00 a.m. to 5:00 a.m.
2:26:30when we are trading since we are trading
2:26:32New York session. And I mean this is
2:26:33relative so to if you're trading like
2:26:35you know Asia session then you want
2:26:37might want to be targeting you know New
2:26:38York AM highs and lows things like that
2:26:40and just timebased liquidity is really
2:26:42really good. So blood and highs and
2:26:44blood and lows that session liquidity,
2:26:46previous session liquidity is really
2:26:47good targets. And I'll show you guys
2:26:48some examples of that right now. So
2:26:49let's hop into the charts. All right. So
2:26:51hopefully you guys have your indicator
2:26:52on. I see kill zone pivots. Hopefully
2:26:54I've told you guys this for the past for
2:26:56like three lessons straight to be
2:26:57putting on this indicator. I see kills
2:26:58and pivots. Um also, oh yeah, I totally
2:27:00forgot guys for the equal highs and
2:27:02lows. Make sure you have this indicator
2:27:03of equal highs and lows and it'll show
2:27:05you equal highs and lows in the market.
2:27:06For example, right here, right? We have
2:27:08equal highs in the market right here. So
2:27:10this is a great draw on liquidity
2:27:12especially like higher time frame when
2:27:14you see like 15-minute equal highs and
2:27:15lows and you see 5minute equal highs and
2:27:16lows great draws right but what else is
2:27:18this is Asia highs so not only is this
2:27:21equal highs but this is also Asia highs
2:27:23okay and then we can also mark out
2:27:25London highs right here and these are
2:27:26just great draws on liquidity and
2:27:28typically we will have if we have like a
2:27:30good New York reversal session New York
2:27:33will end up trading towards that and
2:27:35hitting those highs and look at that and
2:27:36then we hit those highs during overnight
2:27:38not only do we hit that overnight
2:27:39tonight and like during pre-market we
2:27:41then leave London lows right here. Okay,
2:27:42so we can mark out London lows. Another
2:27:45really good draw on liquidity. So let's
2:27:46mark out London lows. And this is when
2:27:48New York AM session actually starts. And
2:27:50then boom, we take it out. We get a
2:27:51really nice reaction off that as well.
2:27:53And yeah, I mean you can just keep doing
2:27:55this like we are usually taking out some
2:27:57session liquidity. We take out lunch
2:27:59hour, we take out PM, AM session, right?
2:28:01Um as you can see here, what do we do?
2:28:02Asia session opens up, London session
2:28:04opens up. We can mark out the lows and
2:28:06highs of that. I'm always marking out
2:28:07the lows and highs of London session and
2:28:09Asian session whenever we have it. And
2:28:11especially on days like this where it's
2:28:13like counter trend and if we can just
2:28:15play this out really quick. This day I
2:28:17believe was counter trend. Yeah. And we
2:28:19ended up just getting a nice reversal
2:28:21and boom, look at that. We sweep out all
2:28:23these liquidity pools and uh just have a
2:28:25nice reversal. So yeah, make sure to
2:28:26mark out your session liquidity. It's
2:28:28really good for you know areas of
2:28:29reversal. You can see that we sweep out
2:28:31London highs, get a nice reaction. So we
2:28:32will typically see some sort of like
2:28:34reactions from these levels as well as
2:28:36you will typically see price just
2:28:38trading towards it. So I like it as
2:28:39targets as well as draws or sorry
2:28:41targets as well as uh key levels and
2:28:43like reversal areas. But yeah, holy
2:28:45sauce. Let's get into the next concept.
2:28:47Now I know I'm overwhelming you with the
2:28:48amount of sauce that I'm putting inside
2:28:50of you. But pause on that. But yeah,
2:28:52let's get into the next concept. All
2:28:53right, so we have three concepts left.
2:28:55This is data wix though. This is one of
2:28:57them. Major major major. Oh no, we
2:29:00actually have four concepts left. I just
2:29:02remembered that I forgot one. So, I'm
2:29:03going to mark that out. But, um, data
2:29:04wicks, okay, a really, really strong
2:29:07draw on liquidity. Okay, data wicks. We
2:29:09have data highs and data lows. I also
2:29:11briefly touched on this in the time
2:29:13video, right? So, I'm just going to, you
2:29:14know, briefly touch on this again. It is
2:29:15when we create a massive wick in the
2:29:17market. And this is usually seen as an
2:29:19imbalance. A lot of orders just weren't
2:29:20built here because the move happened so
2:29:22fast. And the market will typically do
2:29:24something like this. sometimes take out
2:29:25the data low and then run to the data
2:29:26high or take out the data high and then
2:29:28run to the data low or just leave the
2:29:29data highs if it's like not that
2:29:31significant. I don't really, you know,
2:29:32care too much about data highs when they
2:29:34look like this. I'll still mark them
2:29:35out, but they are like a liquidity pool,
2:29:37but like the best ones are when we have
2:29:38like fat liquidity pools like this, like
2:29:40a fat wick, and this will just be like a
2:29:42such a good target. So, yeah, let's uh
2:29:43show you guys some chart examples. And
2:29:45again, this happens during usually 8:30
2:29:47news prints this out or 10 a.m. news or
2:29:499:45 sometimes, but typically it's those
2:29:51big red folder news like CPI, PBI,
2:29:54unemployment claims, sometimes NFP, FOMC
2:29:57at 2, 2 p.m., 2:30. And yeah, let's just
2:29:59show you guys an example of what a data
2:30:00wick looks like. All right, so I'm going
2:30:01to show you guys an example of what a
2:30:03data high and data low wick look like.
2:30:05So this is 2 p.m. news. This is FOMC.
2:30:09You can see that price ends up opening
2:30:10up and we create a massive freaking
2:30:13candle with a pretty abnormal wick to
2:30:15the upside and then also a little bit of
2:30:16a lower wick to the downside. We have
2:30:18this data low here. We can still mark
2:30:20this out. This still is a significant
2:30:21liquidity pool. And yeah, this is
2:30:24clearly a data high and data low. And
2:30:25what you can do and you can target these
2:30:28data highs and data lows. You'll see
2:30:29this gap here gets respected and you can
2:30:32look to target this high up here. If
2:30:34this gap gets respected, you get some
2:30:36confirmation. Let's see. Confirmation.
2:30:38And look at that. And then you could
2:30:39target up this data high. And yeah, also
2:30:41what these data lows are also draws in
2:30:44liquidity. Also targets, right? So these
2:30:45are great areas to look to target as
2:30:47well. Let's say maybe we're seeking some
2:30:49sort of liquidity up here. Oh, we are.
2:30:51We are. We're seeking some sort of
2:30:53liquidity up here. Looking to see that
2:30:54high. I'm guessing guessing that's
2:30:56probably going to get hit. Am I right?
2:30:57I'm right. Is this the high day? I
2:30:59honestly don't remember this day. So
2:31:00let's see. And it is right. So we see
2:31:02out liquidity. And what did we do? We
2:31:04left data lows with what else? Look at
2:31:06this relative lows. relative equal lows,
2:31:08relative equal lows, relative equal
2:31:09lows. Right? So really, really important
2:31:11concept here. And what do we start
2:31:13doing? We start trading back towards
2:31:14that. Getting displacement, getting
2:31:16displacement, and then what is this? A
2:31:18great draw on liquidity. And boom, that
2:31:20gets absolutely smacked. And uh yeah,
2:31:22this is just what data lows, data highs
2:31:24look like. Again, this happened
2:31:25sometimes at 8:30 as well, but I showed
2:31:26you guys an example of this at 2 p.m.
2:31:28This is when there was FOMC news. So
2:31:30yeah, go check it out on your chart.
2:31:31It's an insanely high probability draw
2:31:34on liquidity is those news candles. So,
2:31:36make sure you draw them out on your
2:31:37chart again. And yeah, that's pretty
2:31:39much it for data highs and data lows. It
2:31:41doesn't happen very often, but when it
2:31:43does, it is a banger of a setup for
2:31:45sure. I'm going to move on now to the
2:31:46next liquidity pool. All right, so next
2:31:48concept I have here is new day/week
2:31:50opening gaps, end dogs or ngs. Okay,
2:31:53these are such strong draws on
2:31:56liquidity. I can't tell you guys how
2:31:58strong this draw is. Like when I see the
2:32:01new week opening up or when I see the
2:32:02new opening up, I'm taking a freaking
2:32:04massive position towards there. This is
2:32:06such like honestly one of the strongest
2:32:08magnets in price. Honestly, I would say
2:32:10other than like data wicks and stuff,
2:32:13this is such a strong magnet in price.
2:32:15New week opening gaps. These are always
2:32:16going to get filled. So, I'm always
2:32:18going to have a really strong bias and
2:32:20really be bearish if it this ends up
2:32:22opening up. I'm usually just going to be
2:32:24really really bearish towards that.
2:32:25Okay. And obviously, you know, if we
2:32:26start seeing displacement towards that,
2:32:28of course, got to wait for that. But
2:32:29yeah, essentially what what this is,
2:32:30right? This opens up at 6:00 p.m.
2:32:33Eastern. Okay, so a new week opening
2:32:34gap, a new day opening gap. Every time
2:32:35at 600 p.m. Eastern, we usually just
2:32:37keep running up, right? We continue the
2:32:39move. But when the new day starts,
2:32:41sometimes we end up opening a huge gap
2:32:44in price. And I'll show you guys what
2:32:45that looks like on the chart so you have
2:32:46a better understanding of that. But it's
2:32:47just literally like a gap where there
2:32:49was no price action. There was no
2:32:51candles within it. There's nothing being
2:32:53traded. And there's literally just a gap
2:32:54in price. So price loves to trade back
2:32:56to that and actually fill that to fill
2:32:58imbalances. That's another thing that
2:33:00price loves to do, right? Not only does
2:33:01it seek liquidity, generate liquidity,
2:33:03but it loves to target imbalances. Okay?
2:33:05So this is an imbalance in price, right?
2:33:07And price ends up trading back to this.
2:33:09And again, it's a great great target.
2:33:11It's a great magnet in price. Every day
2:33:13at 600 p.m. Eastern is, you know, an
2:33:15Asia session starts back up and
2:33:17sometimes we leave a gap. And I'll show
2:33:18you guys an example of that cuz I think
2:33:20there was one last week of an example.
2:33:22So let me show you guys. All right,
2:33:23guys. So, as you can see here, I showed
2:33:24you guys this example recently, right,
2:33:26with the London and Asia lows. But what
2:33:28do you also see here? A new day opening
2:33:30gap, right? This is a really small one.
2:33:32Typically, we have it be a little bit
2:33:34bigger, but these are still very
2:33:35prominent draws on liquidity. Okay, new
2:33:37day opening gap is right here. And you
2:33:39can mark this out. I just mark this out
2:33:41like this. New day opening gap. Since
2:33:43this isn't a weekly opening gap, usually
2:33:45like the weekly opening gaps are a lot
2:33:46bigger and the daily opening gaps like a
2:33:48lot smaller. So this is a beautiful new
2:33:50day opening gap and we end up absolutely
2:33:53dumping. We are all the way up here and
2:33:55really just because there was that new
2:33:56day opening gap, you can see that the
2:33:58market freaking dumped over 400 points
2:34:00on this day or something. I think we
2:34:01dumped like 400 points and again really
2:34:04great magnet in price. Really great
2:34:06target. I believe we also left a new day
2:34:08opening gap right here. And I can
2:34:10guarantee you guys whenever this boot
2:34:13camp's going to get released, I will bet
2:34:15$10,000. I'm putting $10,000 right now
2:34:18on the line that this new day opening
2:34:20gap or new week opening gap will get hit
2:34:22before I upload this boot camp just
2:34:23because that's how I know I know how
2:34:25strong and strong is. So I know that the
2:34:27market will eventually reach this level.
2:34:29I don't know when this boot camp's going
2:34:30to release, but hopefully within this
2:34:32week and I know this week will do that.
2:34:34That's a big bet, but I'm willing to put
2:34:35my mouth where my money is because I
2:34:37know how strong this draw liquidity is.
2:34:38So I'll probably be shorting to this
2:34:40tomorrow. Again, super strong draw and
2:34:41sometimes, you know, we don't always
2:34:42have to fill it completely. If you look
2:34:44over at let's see over here, right, we
2:34:47have this new week opening gap here. We
2:34:49didn't fill it completely, right? So, we
2:34:50see that this is our new day opening
2:34:52gap. We end up, you know, opening up 6
2:34:54p.m. and we left this pretty fat gap.
2:34:56It's very obvious and you need to be on
2:34:57also, guys, ETH. Make sure you're on
2:35:00that. I know I talked about that the uh
2:35:01initial video about the trading view
2:35:03setup, but make sure you're on that,
2:35:04right? And then this is your new day
2:35:05opening gap. So, really, really strong
2:35:07draw on liquidity. And again, we don't
2:35:09have to fill it completely. Sometimes we
2:35:11just fill like the middle of it and then
2:35:13we can move from it. So sometimes we
2:35:14just fill like the 50%. People call that
2:35:16like the CE and we didn't even fill C,
2:35:18but we just filled like a little bit of
2:35:19it and then we moved higher which is
2:35:21like typically where you want to be like
2:35:22taking your profits from like whenever
2:35:24we hit that. So again, great magnet in
2:35:26price. I love taking trades towards the
2:35:28new day opening gap. Really, really good
2:35:29draw liquidity. And uh yeah, let's move
2:35:31on to the next concept here, man. All
2:35:32right, so we got two more liquidity
2:35:34pools left. Okay, this next one is
2:35:36previous day high and low. Okay,
2:35:39previous day highs and lows is such a
2:35:41such a such a such a strong magnet in
2:35:44price. Great areas to be looking for
2:35:46reversals off of and as well as great
2:35:48areas to target. Okay, so how you find
2:35:50this and I mean there's really nothing
2:35:52much else to say, but it's like the same
2:35:54thing I guess with sessions and like
2:35:55timebased liquidity like that. It's
2:35:57really really good targets and as well
2:35:59as it's really good reversal areas if
2:36:00you're trading it with the trend and
2:36:01you're trading it alongside for valley
2:36:03gaps and you know draw on liquidity and
2:36:05maybe we have some liquidity pools below
2:36:06it or underneath it that you want to be
2:36:08targeting and stuff like that. Maybe
2:36:09there's relative lows here you know and
2:36:11we have previous day low sweep out
2:36:12previous high go down there you know and
2:36:14um yeah anyways that is that and this is
2:36:16that. So here is the previous day high
2:36:18low in the market and let's show you
2:36:21guys some chart examples. There's really
2:36:22no more explaining to do on this. Let's
2:36:23go into chart some chart examples. All
2:36:25right. So, looking at this chart here,
2:36:26how you actually find your previous day
2:36:28high and low is you just go up here and
2:36:29you click on the daily time frame,
2:36:31right? And you can just see, let's say
2:36:33I'm trading this next day here. I'm not
2:36:35going to play out the candle. Let's say
2:36:36I'm trading this day or sorry, this day
2:36:37right here. Then I can look to the left
2:36:39of me and mark out previous day high and
2:36:41previous day low. And this is like the
2:36:43lowest point that the daily candle has
2:36:44been. This highest point the daily
2:36:45candle has been. Same thing here. This
2:36:47is your previous day if we're going
2:36:48before that. Then if we go before that,
2:36:50that's your previous day. There's always
2:36:51al also like previous week highs and
2:36:52lows, which is really good. And you do
2:36:54the same thing. you just go on like the
2:36:55weekly time frame, you can find that
2:36:56out. You can see we have like great
2:36:58rejections from that. You can see great
2:36:59rejections. So, that's something cool to
2:37:01find out is look at the weekly as well.
2:37:03But let's just take a look at this daily
2:37:04chart here. And you can see on the daily
2:37:06chart, what do we have? We have this
2:37:08daily high right here. And this is your
2:37:10previous day high. Okay. So, we can mark
2:37:12this out with our PDL right there. And
2:37:15then we have our open. But you can see
2:37:17that we have previous day high marked
2:37:19out right here. price ends up and I
2:37:21wrote previous day low like an idiot but
2:37:23price ends up trading up towards
2:37:24previous day high as you can see we end
2:37:27up taking it out and what do you see
2:37:28below us guys when we have previous day
2:37:30high what do you see below us though we
2:37:32also have previous day low so this is a
2:37:33previous day low and what's in between
2:37:35this range that we have low resistance
2:37:38liquidity to the downside right you see
2:37:39that we have low here we have a low here
2:37:42we have a low here a low here we have a
2:37:44bunch of trend line liquidity on the
2:37:45hourly time frame right look at all this
2:37:47and also on the 15-inut look at all this
2:37:49look at all these swing lows that
2:37:50haven't been taken by other swings. Look
2:37:52at this low. This doesn't get taken by
2:37:53this. Look at this low. Didn't get taken
2:37:55by this. Look at this low. Didn't get
2:37:56taken by that. Right? And all this is
2:37:58that beautiful trend line liquidity that
2:38:00we talked about, right? And we can mark
2:38:02this out with LRL. Right? And what do we
2:38:04do? Take out previous day high. We get
2:38:05some nice displacement back lower. We
2:38:07end up creating a 15-minute bearish
2:38:08rally gap there after that displacement.
2:38:10Hit that bearish rally gap. Respect it.
2:38:12Then we trade back lower. Targeting all
2:38:14this low resistance liquidity. And see
2:38:15how fast these moves are when we're
2:38:16targeting lowers of liquidity. It's like
2:38:18really immediate moves. But um yeah, as
2:38:19you can see, 93 opens and just freaking
2:38:21dumps, man. Really, really nice. Really
2:38:22clean. And uh that was after the sweep
2:38:24of the pre-stay high. And then, you
2:38:25know, we get we stay low. Sometimes we
2:38:26get a reaction if we're going to be
2:38:28bullish after that, but um no need to
2:38:29since we just got that nice sweep there.
2:38:31And that is it. Okay. Um let's move on
2:38:32to now the final liquidity pool. And
2:38:35drum roll please, the final liquidity
2:38:37concept we have is unfilled 5 minute and
2:38:4015-minute rally gaps is really what
2:38:42makes up my model. And let's just get
2:38:44into it. Man, unfilled 5 minute
2:38:4550-minute for gaps is such a great
2:38:48concept, right? When we have fal gaps,
2:38:50right, fal gaps love to get filled and
2:38:53pause on that, man. There's been a lot
2:38:54of pauses in this video, but for gaps
2:38:56love to get filled, right? Imbalances
2:38:57love to get rebalanced, right? That's
2:38:59what the market is constantly doing. Not
2:39:00only is it seeking out liquidity, and
2:39:02this isn't really technically like a
2:39:03liquidity pool, I would say, but this is
2:39:05more so like an imbalance. The same way
2:39:07the new week opening gap is like a draw
2:39:09on liquidity. So we can use that same
2:39:11idea, right, where unfilled gaps is
2:39:13great areas for price to trade into and
2:39:15then react off of, right? But we can
2:39:17target this as like a draw on liquidity,
2:39:19right? And again, price loves to
2:39:21rebalance this. So we can take this
2:39:22little scalp, this little move, and
2:39:24let's say price ends up disrespecting
2:39:26this gap and runs through, man, we get
2:39:28all that move, we get all that profit.
2:39:30And that's really like the a lot of the
2:39:31basis of my model is like targeting
2:39:32these unfilled gaps. But yeah, I'll show
2:39:34you guys some chart examples of this
2:39:35because it's a really really great
2:39:36concept. All right. So, if we just look
2:39:37at this chart here, right? We have a
2:39:39couple of unfilled for gaps on the
2:39:405-minute as well as the 15-minut time
2:39:42frame, right? We have this unfilled
2:39:4350-minute gap right around here. Right?
2:39:45This is your 15-minute rally gap. And we
2:39:47also have this being a 5minute gap,
2:39:49right? So, this is a great area because
2:39:50it's an unfilled gap. Unfilled 5minute
2:39:52gap and it's unfilled 50-minute gap. And
2:39:54what do we do? We just swept out some
2:39:564hour sellside liquidity. What is this?
2:39:58Is this a intermediate low inside of a
2:40:004hour gap? Would you look at that? And
2:40:02look at the way we sweep it out.
2:40:03Immediate displacement, right? So 4hour
2:40:05intermediate low sweep, right? We're
2:40:07combining now all the concepts that I'm
2:40:09teaching you guys, right? 4hour
2:40:11intermediate low, sweep out. Not like
2:40:13the best sweep, but whatever. And we
2:40:14have an unfilled 15-minute gap above,
2:40:16unfilled five-minute gap above. After we
2:40:18sweep out price, what do we do? We end
2:40:20up rebalancing that range. And you could
2:40:21have caught a banger trade, bouncing off
2:40:24that gap, bouncing off that liquidity
2:40:25pool, sorry. And targeting this gap and
2:40:27catching a nice, you know, banger little
2:40:29trade, a little mech model, if you will.
2:40:30Okay, so these are great draws in
2:40:32liquidity to have is just unfilled gaps,
2:40:33right? the range is constantly being
2:40:35rebalanced and especially after we have
2:40:37sweeps on liquidity, it's really good to
2:40:39be targeting these unfilled gaps. But um
2:40:41yeah, that's pretty much it. Going to
2:40:42wrap up this video and yeah, that's
2:40:44pretty much going to wrap it up guys for
2:40:46the concept of liquidity, liquidity,
2:40:49advanced concepts part two. If I look
2:40:51crazy, my bad. My hair is just crazy.
2:40:54I'm looking freaking crazy right now
2:40:56because I'm crazy for liquidity. All
2:40:57right, I'm crazy for this [ __ ] I love
2:40:59it and I love teaching you guys. And um
2:41:01yeah, if you made it this far into the
2:41:02boot camp, we're probably almost halfway
2:41:04done. We are more than halfway done. I
2:41:06think I think we're about 3/4ers done.
2:41:08So, if you've made it this far into the
2:41:09boot camp, comment the words, I will
2:41:11become profitable or anything like
2:41:13anything around that, like I will become
2:41:15profitable in 2026 is my year, you know,
2:41:18something motivational. I want to see
2:41:19your comments. Say, you know, I made it
2:41:21this far and this is what I have to say.
2:41:22Say what you got to say, but I will
2:41:24become profitable um if you made it this
2:41:25far. And u yeah, that's going to be it.
2:41:27I'm going to go to freaking bed. Um then
2:41:29tomorrow we got SMTs to cover. We got
2:41:32what else? We got the model to cover. We
2:41:34got daily bias. We got conditions. We
2:41:36got how to start trading, how to and how
2:41:38to actually make it in trading. And we
2:41:40got a lot to cover. So a lot more sauce
2:41:42is to going to be given to go from zero
2:41:44to hero. There's a lot of sauce still
2:41:46left. So hopefully we'll finish this in
2:41:47the next two days. But uh yeah, see you
2:41:49guys later. Enough yapping. Peace out.
2:41:50What is going welcome to this lesson.
2:41:53Today we are going to be covering SMT
2:41:55divergence. Okay, so this is a really
2:41:58important concept because a lot of the
2:41:59times I know a lot of people will be in
2:42:01positions and then they'll see a
2:42:03liquidity pool and then it won't get
2:42:05taken and they'll be like why didn't it
2:42:06get taken and then it runs the opposite
2:42:08way. It was probably an SMT divergence.
2:42:09So this can be really really helpful for
2:42:11not only taking profits on your trades
2:42:13and patching you know that top and
2:42:15bottom of the move but also it's for
2:42:18actually analyzing the chart and being
2:42:19able to understand where the highest
2:42:21probability rejection levels are going
2:42:23to be. Okay, so really important
2:42:25concepts and let's get into the lesson.
2:42:27Let's do it. All right, so this is SMT
2:42:29divergence. We have an SMT divergence
2:42:32with a bullish SMT and a bearish SMT.
2:42:34Okay, so what does this all mean? Okay,
2:42:36so an SMT divergence is essentially
2:42:39where one asset takes a low or a high
2:42:42and then another asset doesn't take that
2:42:44low or high. Okay, so in this example
2:42:46here, you can see that there is NASDAQ
2:42:48right here, NQ, and you see that we have
2:42:51this pool of sellside liquidity resting
2:42:53right here. You can see that NASDAQ does
2:42:55not take it out but we end up rallying
2:42:57higher. Whereas ES does take it out and
2:43:00then it's the same exact low and then it
2:43:02rallies higher. Right? So whenever we
2:43:04have a divergence in assets but from NQ
2:43:07and ES, this is typically a sign that
2:43:10the market is going to reverse from that
2:43:12level. It's like a good confirmation,
2:43:14right? And you can switch this around,
2:43:15right? It doesn't matter if the NASDAQ
2:43:17was the first one to do it or ES was the
2:43:19one to do it. Again, switch this around
2:43:21and once you see that SMT get formed, so
2:43:23let's say you see price going and you
2:43:24see it take this low and then you see ES
2:43:27and it doesn't take this low. Really,
2:43:28really good sign and confirmation that
2:43:30this is a valid and it's a good
2:43:32liquidity sweep, right? This concept is
2:43:34not like the end all be all. I don't
2:43:37really need it. It's not like 100%
2:43:39necessary for a model, but it does add
2:43:41more conviction for me in order to take
2:43:43a trade. Sometimes I'll want to see it
2:43:45or sometimes, you know, NQ might be here
2:43:47and I'll be like, "Yo, why are we like
2:43:49moving up so much?" And then I'm like,
2:43:50"Oh." And I look at ES and there's an
2:43:52SMT, right? And it's the same thing with
2:43:54a bearish SMT. A bearish SMT is when one
2:43:57asset doesn't take the high and then the
2:43:59other asset does take the high, right?
2:44:00So, let's say we have the same exact
2:44:02pool of buyside liquidity right here.
2:44:03Let's say this pool of buyside liquidity
2:44:05is previous day high, right? Previous
2:44:07day high is resting right here. And ES
2:44:09doesn't sweep it out, but then NQ does.
2:44:12And then we see that price ends up
2:44:13moving lower, right? And this is a
2:44:15bearish SMT. And again, same thing. You
2:44:17can switch this around. This could be
2:44:19ES, this can be NQ. It doesn't really
2:44:20matter what pair really leads. And yeah,
2:44:22that's really it. That's it for for
2:44:24SMTs. And I know a lot of you guys are
2:44:26also going to hear around that there was
2:44:28an SMT divergence with YM, the Dow
2:44:31Jones, right? And I personally don't use
2:44:34SMTs with any other asset other than the
2:44:36S&P 500. And the reason this is such a
2:44:39strong concept is because there is a
2:44:41correlation between these two assets,
2:44:43right? The reason SMTs exist in the
2:44:45first place is again because of that
2:44:47correlation because NQ and ES they move
2:44:50typically the same way, right? Where ES
2:44:52can go, you know, up here, NQ can go up
2:44:54here. And whenever again you see that
2:44:56SMT form with one asset and the other
2:44:59asset doesn't take that high or doesn't
2:45:00take that low and you know the other
2:45:02asset does, it's a really good
2:45:04indication in price reversing or price
2:45:07not going for that level. Right? If we
2:45:08take for example this low here on ES and
2:45:11you see price moving, you don't have to
2:45:13see that low get hit on NQ, right? So
2:45:15that's just the main reason why SMTs are
2:45:17so important because they're correlated
2:45:19assets. So the second they uncorrelate,
2:45:21which you know happens, it's it's a
2:45:23really good indication in price. But uh
2:45:25yeah, let's get into some chart examples
2:45:26and some rules that you can start
2:45:28implementing to make SMTs like a higher
2:45:30probability concept. All right, so we're
2:45:33on the actual charts here. I'm going to
2:45:34first show you guys a example of a
2:45:36bullish SMT. Okay, so this is the
2:45:38NASDAQ. I'm on NQ futures and then this
2:45:41is ES charts, right? This is the ES
2:45:43chart. Now, what I want you guys to
2:45:45start doing, and what you guys will see
2:45:46me do typically, is I will open up both
2:45:49assets side by side. So, I'm constantly
2:45:52being able to refer back to one another.
2:45:54So, you can do that by going up right
2:45:55here with layout setup, clicking this
2:45:57button right here. And then, as you can
2:45:58see, not only ENQ's charts is on the
2:46:01left side, but you can also see ES's
2:46:02chart is on the right side here. That's
2:46:04the way I like it. You can switch it
2:46:05around. You can have ESB here, NQB here,
2:46:07but this is like the way to do it. All
2:46:09right. Now, what I look at is I will
2:46:11first look at major swing lows and swing
2:46:14highs. So, just little tips to start
2:46:15making your SMTs higher probability is
2:46:18for one, just make sure they're at major
2:46:21swings and major key levels. The most
2:46:24common common mistake I will see so many
2:46:26beginner traders make is that they will
2:46:28always be putting every single SMT on
2:46:31the chart and they will constantly be
2:46:32marking out every single SMT whether
2:46:34it's on the 1 minute, 2 minute, 3 minute
2:46:35time frame and they're just marking out
2:46:37every single swing high and swing low as
2:46:39a valid SMT when that's really not the
2:46:41case, right? An SMT should only be like
2:46:43confirmation for your trade. What I
2:46:45always say is you should always be
2:46:47expecting that SMT to form, right? You
2:46:50should never like see the SMT and then
2:46:51be like after, oh, okay, there's an SMT
2:46:54or now I'll take the trade, right? Like
2:46:55you should already expect manipulation
2:46:57and the SMT should be in places where
2:46:59you're already expecting that
2:47:00manipulation, right? So again, it's just
2:47:02an added confluence. It shouldn't be the
2:47:05like make or break of your trade, right?
2:47:07It should just be again an added
2:47:09confluence. So for example here, right?
2:47:11Let's say I want to take a long off of
2:47:13this major pool of sellside liquidity,
2:47:15right? This is what previous day low.
2:47:17Okay, so this is a pretty major pool of
2:47:19liquidity and I want to see price reject
2:47:22off this level and take longs. Okay, so
2:47:23we have previous day low resting right
2:47:25here and then what do we have on ES that
2:47:27same exact previous day low. So to you
2:47:29know help yourself identify SMTS guys.
2:47:31The really the only thing is just to be
2:47:33you can dra like you see how my mouse
2:47:35here I'm dragging this over and not only
2:47:37is it 3:45 p.m. Wednesday December 17th
2:47:40on the right side but it's also the same
2:47:42thing on the left side here with NQ
2:47:44right? This is the same exact low. So,
2:47:46you know, you're really only going to
2:47:47get better at identifying SMTs by just
2:47:50doing the work and just back testing and
2:47:52just looking in your charts and just
2:47:53looking at where price is rejecting. I
2:47:55remember when I first found out about
2:47:57SMTS, bro, I thought it was like the
2:47:58literal cheat code to trading. And it
2:48:00kind of is like it's a great confluence
2:48:02to have, but again, it's not the end-
2:48:04all beall. But let me just show you what
2:48:05an example of a bullish SMT looks like.
2:48:07So, you can see, let me just play out
2:48:08the chart. And we start trading towards
2:48:10previous day low here on ES. And boom,
2:48:12ES ends up taking that out, right? So ES
2:48:14takes it out but NQ does not. So you can
2:48:16see here we end up forming what? A
2:48:18bullish SMT divergence. Okay. Boom. And
2:48:21you can mark this out like this. And now
2:48:22we have an SMT divergence. Now if we
2:48:24start getting displacement back up, you
2:48:26know, let's say we invert this bearish
2:48:28for gap here and we get that
2:48:30confirmation. We can assume then that
2:48:32this SMT is valid and that this is going
2:48:34to be a protected low. Right? So again,
2:48:36a protected low is just a low that
2:48:38doesn't need to get traded back to.
2:48:40Right? We see this swing low right here.
2:48:42And since ES already took it out, I know
2:48:43a lot of you guys are going to be like
2:48:44confused and it's going to be really
2:48:46hard at first for you guys to start like
2:48:47understanding like, oh, this low didn't
2:48:50get swept. This is like we should go
2:48:51back to this, right? But no, ES already
2:48:53took it out. So, it's not necessary now
2:48:55for NQ to do the same. And again, you
2:48:57can switch this around. This could have
2:48:58been the ES chart. This could have been
2:48:59the NQ chart. It does not matter. Okay.
2:49:01Now, you can see what do we do? Boom. We
2:49:03get that confirmation through what the
2:49:05inversion for gap right there. We get
2:49:06that confirmation. this bearish gap gets
2:49:08inverted, gets closed through, and you
2:49:10can look to take your long positions and
2:49:13target opposing liquidity. And you know,
2:49:15we'll see how this plays out. And you
2:49:17look at that, right? So, this move
2:49:18started from that bullish SMT at that
2:49:20key level. And what can you target? You
2:49:22can target some buy side liquidity. You
2:49:24can also target some unfilled gaps. You
2:49:26see, we have an unfilled 15-minute
2:49:27bearish rally gap right here. And price
2:49:29ends up ripping and targeting all of
2:49:31that. So, this is how you can start
2:49:32implementing SMTs. I'm going to now show
2:49:34you an example of what a bearish SMT
2:49:36looks like on the charts real quick. All
2:49:37right, so I'm now going to show you guys
2:49:38an example of a bearish SMT. Okay, so as
2:49:41you see here, guys, we have a very
2:49:43prominent key level being this buy, sell
2:49:45liquidity right here. And this is also
2:49:47what? Previous day high. I know I just
2:49:48said two examples of previous day high,
2:49:50but it's a really strong rejection level
2:49:52and overall drawn liquidity. Right? So
2:49:53previous day high is right here,
2:49:55previous day high. And we are also
2:49:56inside of what? Well, if we look on the
2:49:58higher time frame like the 4 hour, we
2:50:00are inside of a massive bearish 4hour
2:50:02for rally gap, right? So, boom, we're
2:50:04inside of this as well as we wanted. We
2:50:06had previous day high right above. Okay,
2:50:08so previous day high, boom. And we can
2:50:10see that if I'm going to be bearish,
2:50:12let's say I'm coming to the day and I'm
2:50:13looking to be bearish. I want to see
2:50:14this high get swept and then I'm going
2:50:16to look for shorts back down lower to
2:50:18let's say this sellside right here,
2:50:19right? That's probably going to be like
2:50:20my thought process going into this day.
2:50:22Now, if we look at the chart on the
2:50:24right here with ES, you can see that we
2:50:26have that same exact liquidity pool
2:50:28right there. Right? We can mark this out
2:50:29with previous day high. You can see we
2:50:31drag this cursor over to this area and
2:50:33you see it's aligned with both ES and
2:50:35NQ. Okay. And let's play out price a
2:50:37little bit here. Play it out on this
2:50:38candle. And you can see that ES actually
2:50:41ends up taking out this previous day
2:50:43high right here. And what does NQ do? It
2:50:45doesn't take it out. So, at this point,
2:50:47we have an SMT divergence, right? There
2:50:49is an SMT divergence currently in the
2:50:51market where ES took out a major swing
2:50:54point, a major high, whereas NQ did not.
2:50:56And again, this is really, really
2:50:58important. I want you guys to only be
2:50:59paying attention to SMTs at key levels,
2:51:02at areas where you know price or you're
2:51:04expecting price to have manipulation.
2:51:06Okay. And what do we have targets below?
2:51:08Well, we have this sellside liquidity
2:51:10resting right there. We can also look a
2:51:12little bit lower. Do we have any
2:51:13unfilled gaps? Yep, we have an unfilled
2:51:1515-minute gap down here. Right. So, we
2:51:17have a couple of targets down here.
2:51:19Right. And now we can just wait for a
2:51:20reaction. Maybe like an engulfing
2:51:22candle, maybe some sort of rejection.
2:51:24And look at that. And what do we get?
2:51:25You can see here we get an inversion for
2:51:27valley gap right around not yet. Price
2:51:30is still respecting this. And boom, we
2:51:32get an inversion for valley gap, right?
2:51:33So super nice. We start disrespecting
2:51:35gaps here. And what do we start doing?
2:51:37We now go lower and lower and market
2:51:39opens and we absolutely dump towards all
2:51:41those draws on liquidity. Right? So as
2:51:43you see, this move started from an S&
2:51:45divergence. A lot of people if they
2:51:47don't know about SMTs, they're probably
2:51:48really confused. They're like, "Why did
2:51:49the market dump without taking out this
2:51:51buy side liquidity here?" Well, there
2:51:53was actually an SMT divergence already
2:51:55in play. So, ES or sorry, NQ didn't have
2:51:58to go take out this draw on liquidity.
2:52:00NQ didn't have to go take out previous
2:52:02day high because there was an SMT at
2:52:04this key level. So, really, really cool
2:52:06example here. And this is just SMTs. All
2:52:08right, so that's going to pretty much
2:52:09wrap up this video on SMTs, guys. This
2:52:12lesson is going to come to an end right
2:52:14now. But just some things to note guys
2:52:16is two things with SMTs, right? One is
2:52:19it has to be inside of a higher time
2:52:21from frame key level. So again like I
2:52:23was saying and before and like I'm
2:52:24saying throughout this whole video, make
2:52:25sure it's at a key level. So you know
2:52:27your key liquidity pools or for valley
2:52:29gap or you know an intermediate high and
2:52:31low resting within a gap and try to
2:52:33stick on the higher time frame. So try
2:52:34to stick on the 15-inut time frame and
2:52:36above with SMTs. Don't be looking at
2:52:38SMTs on the 1 minute, 2 minute, 3
2:52:40minute. You're just going to get chopped
2:52:41around. you're going to get manipulated.
2:52:42And this is the thing like of course you
2:52:44know the assets of NQ and ES are
2:52:46correlated but at the same time that
2:52:48doesn't mean that they are always going
2:52:49to move the exact same perfectly every
2:52:52single time right there's a lot of times
2:52:54where we have a super super bullish bias
2:52:56let's say for example and ES might be
2:52:58leading and we might still be going up
2:53:00and NQ might be you know the one behind
2:53:02and it might not be taking out highs
2:53:04that doesn't immediately mean that the
2:53:05SMT is valid yet and that you know it's
2:53:08now a bearish SMT right that's still why
2:53:10you have to wait for confirmation
2:53:11through everything and we're going to
2:53:12get into that when we talk about the
2:53:13entry model, but this is just simply a
2:53:14concept that you can start using and
2:53:16start applying if it's of course in
2:53:18addition to your higher time frame bias
2:53:20and in addition to whatever liquidity
2:53:22pools and levels that you're already
2:53:23looking at. So again, the SMT is just a
2:53:26concept that should be existing within
2:53:28and alongside the model that you're
2:53:30already looking at, but it shouldn't be
2:53:32something that's like making or breaking
2:53:33the trade, and it shouldn't be something
2:53:35like that. So that's pretty much it. I'm
2:53:36going to stop yapping here. But yeah,
2:53:38the next one we're going to go into, I
2:53:40believe, I don't know, either risk
2:53:42management or daily bias. And then we
2:53:43got one more after that. We talk about
2:53:45the uh model. And yeah, it's going to
2:53:47wrap it up for this one though. What is
2:53:48going on? Welcome to lesson number nine
2:53:50in the course. This lesson is going to
2:53:52be going over daily bias, your draw on
2:53:54liquidity, and overall conditions in the
2:53:57market. I know I say this every episode
2:53:59that this is going to be the sauciest
2:54:00episode, but this is actually going to
2:54:01be the sauciest freaking episode that
2:54:03I've ever done in my whole entire series
2:54:04of this whole entire thing. Okay, I've
2:54:06already talked about draw on liquidity
2:54:07twice now, but draw on liquidity and how
2:54:10you get to these liquidity pools is
2:54:12basically this whole entire lesson and
2:54:14daily bias and all this stuff, right?
2:54:16And this is really, really important.
2:54:17I'm going to show you guys first just
2:54:19how to view the market and how I view
2:54:22the market. And this is literally going
2:54:23to blow your freaking mind that the
2:54:25market only moves in these ways. And how
2:54:27you find out where the market is moving
2:54:29is by asking yourself some simple
2:54:30questions. And I'm going to show you
2:54:31exactly that. And then I'll show you
2:54:33guys some real chart examples. And yeah,
2:54:35again, this is going to be a banger
2:54:36lesson. I'm super stoked. I've worked
2:54:39pretty hard setting this up for you
2:54:40guys. So hopefully you guys enjoy and
2:54:42let's just get into this. All right, so
2:54:44we are on the charts now, right? And
2:54:45this is what I have drawn out for you
2:54:47guys. So the first thing that you guys
2:54:49have to be doing when figuring out your
2:54:51drawn liquidity and figuring out your
2:54:52overall daily bias, asking yourself
2:54:54these three questions, right? And
2:54:56understanding why the market is even
2:54:57should be moving, right? The market is
2:54:59moving for three ways in three different
2:55:01ways, right? the market moves to either
2:55:03rebalance into inefficiencies, right?
2:55:05Meaning just for value gaps. It's used
2:55:07to rebalance into equilibrium of the
2:55:09range, right? So to trade back to
2:55:10premium if we're bearish or discount if
2:55:13we're bullish, right? So we're just
2:55:14rebalancing ranges. And the market's
2:55:16also moving to seek out liquidity. So
2:55:18the market is always doing these three
2:55:21things. It's always doing one of these
2:55:22three things. It's either rebalancing an
2:55:23inefficiency, it's either seeking out
2:55:25liquidity, or it's rebalancing to
2:55:28equilibrium of a range. Right? And when
2:55:30we are taking trades, it's very
2:55:32important that we get ourselves on side
2:55:34to one of these moves and we understand,
2:55:36okay, for example, the market is moving.
2:55:38Let's say I'm looking at the market
2:55:40here. The market is moving towards where
2:55:42towards here. And it's looking to
2:55:43rebalance towards an inefficiency. So I
2:55:45want to position myself in this area
2:55:47where I can target knowing that it's
2:55:49doing that. Or let's say we're going to
2:55:51seek out liquidity. Well, where do I
2:55:53want to position myself in the market?
2:55:54In an area where we are going to seek
2:55:56out liquidity and I know that, right?
2:55:58And so just knowing this that the market
2:56:00is doing one of these three things and
2:56:02knowing and asking yourself these
2:56:03questions of like what is the market
2:56:04even doing it's really really helpful
2:56:06for understanding your trades and
2:56:08understanding the why behind your trades
2:56:10and actually taking high quality setups.
2:56:12And then finally, of course, if you're
2:56:13looking to rebalance into equilibrium of
2:56:15the range, which is, you know, what we
2:56:16talked about with our premium and
2:56:18discount lesson, right? The market is
2:56:20looking to rebalance to fill orders at
2:56:22this level. The same way the market's
2:56:23looking to fill orders here, the same
2:56:24way the market's filling orders here,
2:56:26right? So, it's always about filling
2:56:27orders, taking people out of the market,
2:56:29and putting people in the market, right?
2:56:31That is just basically what the stock
2:56:33market is here for. Okay? So, that's it.
2:56:35That's the these are the three questions
2:56:37that you got to be asking yourself on
2:56:38why is the market even moving. And then
2:56:40from there we'll look at the two other
2:56:42questions. So there's five total
2:56:44questions that you need to be asking
2:56:45yourself really or really like three in
2:56:47total I guess like why is the market
2:56:48moving? And then I'm going to show you
2:56:49guys the draw and liquidity questions to
2:56:51actually identify where the market is
2:56:53going. Okay. So let's let's move on to
2:56:55that right now. But yeah, stay on this
2:56:57rewatch this segment if you guys were a
2:56:58little bit confused. But you know I'm
2:57:00going to show you a bunch of examples in
2:57:01a bit so you guys will have a better
2:57:03understanding of this. All right. So the
2:57:04next two questions that you have to be
2:57:06asking yourself is overall how are you
2:57:08going to find your draw liquidity?
2:57:09right? Like how am I finding my draw
2:57:11liquidity? Well, you ask yourself these
2:57:13two questions. The first question you
2:57:14ask yourself is are we delivering from
2:57:16buy side or sellside liquidity? Okay, so
2:57:19when you're looking at the market, where
2:57:20are we moving from? Like are we moving
2:57:23after we've taken out buy side liquidity
2:57:25or are we moving after we've taken out
2:57:26sellside liquidity? You can see here in
2:57:28this example, we are delivering from
2:57:30sellside liquidity, right? Let's say
2:57:32this is London session lows, let's say,
2:57:34right? And we swept this out and we
2:57:36started delivering higher. Well, we are
2:57:37delivering from where? Sellside
2:57:39liquidity. Okay. Now, what fair value
2:57:40gaps are we respecting versus
2:57:42disrespecting? Okay. This is the next
2:57:44question you have to ask yourself in
2:57:45this scenario here. We are disrespecting
2:57:48bearish for value gaps and respecting
2:57:50bullish. Okay, so for this example, what
2:57:52are we doing? We're delivering from buy
2:57:54side liquidity, right? We are
2:57:56disrespecting bullish fal gaps and we
2:57:59are respecting bearish, right? We are
2:58:01clearly inverting and just trading
2:58:03through and just saying f you to this
2:58:05bullish gap. And then what are we doing
2:58:06to these bearish gaps? We're saying yes,
2:58:08I like this. And they're, you know,
2:58:10you're respecting that, but they're just
2:58:11disrespecting these bearish gaps and
2:58:13we're respecting these bullish gaps. And
2:58:14what are we doing? Delivering from sell
2:58:15side. What are we doing here? Delivering
2:58:17from buy side. So again, the general
2:58:18consensus when these things are aligned
2:58:21when you are delivering from sellside
2:58:23and you are disrespecting bearish and
2:58:25you are respecting bullish, what does
2:58:27that equal? A bullish bias. And it
2:58:30equals that the market and if you have a
2:58:32reason for the market to go up here,
2:58:35let's say we are seeking liquidity, then
2:58:37this is beautiful. This is your draw on
2:58:39liquidity and all of those things are
2:58:40aligned. Let's say that you're going to
2:58:42rebalance maybe an inefficiency we have
2:58:44up here. Maybe there's an unfilled gap
2:58:45we have here. Maybe that's your draw on
2:58:47liquidity. Okay, beautiful. Right? So
2:58:49that's the question you have to ask
2:58:50yourself. Now, same thing here. If you
2:58:51are delivering from buyside liquidity
2:58:53and you are disrespecting bullish and
2:58:56you are respecting bearish, then that is
2:58:58a bearish bias and you have a bearish
2:59:01draw on liquidity and your draw on
2:59:02liquidity is most likely lower. Right?
2:59:03Again, if these things are aligned and
2:59:05these things are aligned, once you add
2:59:06all that up, then you can get yourself a
2:59:09really high probability draw on
2:59:11liquidity, a really high probability
2:59:12bias. And this is literally the exact
2:59:15questions that I'm asking myself every
2:59:16single day to form my bias because after
2:59:18this lesson, I'm going to go into my
2:59:20overall model and the, you know, the
2:59:22intraday way of trading. But you have to
2:59:24understand this first in order to take
2:59:27lower time frame trades. I'm using this
2:59:29in order to take my lower time frame
2:59:30trades. Without this, you guys will be
2:59:32screwed, right? You need your higher
2:59:33time frame bias in order to have your
2:59:35lower time frame trades. You need this
2:59:37to always be aligning. Okay? So let's
2:59:39say we have a bearish bias on the higher
2:59:41time frame, right? We are super bearish.
2:59:43We are delivering from buy side. We are
2:59:44disrespecting bullish respecting bearish
2:59:46in our drawing liquidity is lower. I'm
2:59:48going to be going on the lower time
2:59:49frame with my model and with the entry
2:59:51model that I'm going to show you. And
2:59:52I'm be taking trades using that lower
2:59:54time frame entry model. And it's going
2:59:55to be shorts. I'm not going to be taking
2:59:57longs. Right? So I'm always trying to
2:59:58trade alongside the daily bias that you
3:00:01get from this from these questions and
3:00:03the overall draw liquidity. You want to
3:00:04be trading towards that and with that
3:00:06trend. So this is how you find your draw
3:00:08liquidity and these are the questions
3:00:09you have to be asking yourself as well
3:00:10on why is the market even moving in the
3:00:12first place? Why should we go there? And
3:00:14then this is how are we going to get
3:00:16there? Does that make sense? Cool. Cool.
3:00:18Cool. Can we move on now to some sick
3:00:20examples? I'm going to go into now some
3:00:21examples and let's get into it. All
3:00:23right. So let's go ahead and take a look
3:00:24at this first example right here. These
3:00:26are all going to be screenshots from
3:00:27when I used to send out daily biases to
3:00:30my Discord. And let's get into it
3:00:31though, okay? And this still applies to
3:00:34this year of course, right? But I said,
3:00:36"Good morning, PB team. Bullish bias
3:00:37coming into the morning. We swept out
3:00:38previous day high or previous day low,
3:00:40sorry, the intermediate low inside of
3:00:42the daily bissy, which is the daily
3:00:43bullish rally gap. And we're currently
3:00:45displacing high. If we get the 15-minute
3:00:47and hourly CISD, which is just a change
3:00:49state delivery, which is just, you know,
3:00:51an inversion, some displacement, we can
3:00:53expect London highs in the recent buy
3:00:55side. As internal liquidity pools, we
3:00:56have data highs as an obvious draw
3:00:58coming into AM and I would want to see
3:00:59that get hit. I will see you all at
3:01:01open. Okay, so how did I come to this
3:01:03conclusion of a bullish bias? Well,
3:01:05looking right here, right? I want to see
3:01:07how do I let's let's go to the left
3:01:09here. Why is the market even moving in
3:01:11the first place here, right? Why are we
3:01:13moving? Well, we are moving because we
3:01:15have internal liquidity pools of data
3:01:17highs as the obvious draw coming to AMP.
3:01:19So the draw on liquidity is data highs
3:01:22as well as London highs and that recent
3:01:23buy side. Right? So we have data highs,
3:01:25you have this buy side liquidity above
3:01:26and we have that external draw, right?
3:01:28So the reason the market would move here
3:01:30is because we want to be able to seek
3:01:32liquidity. Okay? Now if we go over left
3:01:34here, how do I actually find my drawing
3:01:36liquidity? Well, I'm going to look at
3:01:37are we delivering from buy side or sell
3:01:39side? In this scenario, guys, where are
3:01:40we delivering from? Buy side or sell
3:01:42side? We're delivering from where?
3:01:43Sellside side which is previous day low.
3:01:45Okay. And then are we respecting or
3:01:46disrespecting for rally gaps? So what
3:01:48rally gaps are respecting versus
3:01:50disrespecting? Okay. We are currently
3:01:52disrespecting what? Bearish and we are
3:01:54respecting what? Bullish here. Okay. And
3:01:56as you guys can see after we swept out
3:01:58previous day low, we got that
3:01:59displacement. We were disrespecting
3:02:01bearish rally gaps here. got the change
3:02:02in state delivery and we absolutely
3:02:04ripped up towards this buy side
3:02:05liquidity towards these data highs that
3:02:07were around here and just an overall
3:02:09really beautiful setup right where it
3:02:11was just from that bias from we were
3:02:12disrespecting bearish respecting bullish
3:02:14we were delivering from sell side and we
3:02:16had a draw on liquidity higher being
3:02:18this buy side liquidity being the
3:02:19session highs and being data highs so
3:02:21really nice all right let's take a look
3:02:22at this next example here I said I had a
3:02:24bearish bias coming into the day we
3:02:26respecting this 1hour unicorn a unicorn
3:02:28is basically just a bearish rally gap
3:02:30and a breaker block and breaker block is
3:02:32just when we have a series of down close
3:02:34candles, then we trade above it, then we
3:02:36get like a break of structure, we get
3:02:37that market structure shift. This is
3:02:38just that area, right? And you can see
3:02:40we have a feral gap, right? What you
3:02:41guys should be knowing is we are
3:02:43respecting bearish here, right? We're
3:02:44respecting this bearish parall gap and
3:02:45we are in bearish order flow on the
3:02:47higher time frame. That's also really
3:02:48important, right? Bearish order flow
3:02:49again just simply means a bearish buy.
3:02:51So, we are disrespecting and bullish and
3:02:53we are respecting bearish. That's
3:02:54bearish order flow. And I'm looking to
3:02:55see us have an open high low close at
3:02:579:30 a.m. sweeping out the 15-minute
3:02:59internal high. You guys know what that
3:03:01means, right? An open high meaning price
3:03:03should trade open, go higher at 9:30,
3:03:05sweeping out the 50-minute high and then
3:03:07trade lower, generating this trend line
3:03:09liquidity on the left of us. These
3:03:10stacked lows are the draw on liquidity
3:03:12for the day. And if we disrespect the 1
3:03:13hour, then just expect the 4 hour and
3:03:15whatever. Okay, so let's go back to this
3:03:16chart here, right? That was a lot to
3:03:18dissect. Okay, first off, why is the
3:03:20market moving in this scenario? Well,
3:03:21it's moving to what? Seek out liquidity,
3:03:23right? We have liquidity resting right
3:03:25around here, right? You guys all see
3:03:26that? As you guys see here in the
3:03:28screenshot, we have a bunch of stacked
3:03:30lows. Okay, this is a really good
3:03:32liquidity pool, right guys? We were just
3:03:33talking about this about relative equal
3:03:35lows and when we have so many relative
3:03:37equal lows, all this low resistance
3:03:39liquidity, all these lows that are just
3:03:40stacked up together, again, a great draw
3:03:42liquidity. So, this is what we were
3:03:43looking at to the left of us on the
3:03:4450-minute time frame. The reason the
3:03:46market would be moving here is to seek
3:03:48liquidity. And you'll see that that's
3:03:49usually the common denominator. It's
3:03:51usually we are the market is usually
3:03:52seeking out liquidity. I'll show some
3:03:53other examples where we rebalance the
3:03:55range and rebalance in efficiencies. But
3:03:56as you can see here, we're seeking out
3:03:58liquidity. Now, looking at this chart
3:04:00here, are we delivering from buy side or
3:04:02sell side? Well, we are clearly
3:04:03delivering from what? Buyside liquidity.
3:04:05This is Asia highs right here, right? We
3:04:07are delivering from Asia highs and we
3:04:09are disrespecting bullish. You see these
3:04:11bullish for gaps here, they just got
3:04:12disrespected. This bullish rally gap
3:04:14here got disrespected. So, we are
3:04:16delivering from buy side. We are
3:04:18disrespecting bullish and we are
3:04:19respecting bearish. What does this trend
3:04:22mean? And what does this indicate with
3:04:23the draw on liquidity that we have
3:04:25lower? This is a bearish bias coming
3:04:27into the day. And I'm going to look for
3:04:29shorts down here. Maybe we get a little
3:04:30internal sweep at 9:30. That would be
3:04:32nice. But that's the overall bias for
3:04:34the day. And what do we do exactly at
3:04:369:30, we end up opening up, we trade up,
3:04:39we end up manipulating more into this
3:04:41gap, hitting the internal high. Like I
3:04:43said, we get a 9:30 open high. We get a
3:04:45really nice sweep here. We end up
3:04:47leaving out relative equal lows as well,
3:04:48leaving more liquidity and we absolutely
3:04:50dump towards these stacked lows that we
3:04:52had marked out. So that was the bias for
3:04:54this day. This was a bearish bias and
3:04:56this was targeting this sellside
3:04:57liquidity based on the framework that I
3:04:59just showed you guys. All right. So
3:05:01looking at this example here, I said,
3:05:03"Good morning PBT. We are going to be
3:05:04bullish until proven wrong." We were
3:05:06bullish until proven bearish when at
3:05:08all-time highs, right? So this time we
3:05:09were trading alltime highs and I'm
3:05:10leaning bearish. Why? Because of Asia
3:05:12session not filling the new week opening
3:05:13gap. So what do we have? An inefficiency
3:05:15lower. Remember guys, we talked about
3:05:16new week opening gaps, right? And
3:05:18running higher towards the recent buy
3:05:19side. Asia Judas New York reversal,
3:05:21meaning Asia session is going to
3:05:22manipulate and New York is going to
3:05:24reverse. That's what I'm expecting right
3:05:25now. We're trading inside of this
3:05:2630-minute bissy, which is just a bullish
3:05:28for gap. Right? So this bullish for
3:05:29valley gap I was saying if I see this
3:05:31gap get disrespected, I'll be completely
3:05:34bearish towards a new week opening gap.
3:05:36But for now, the rest of the time, I'm
3:05:37going to be bullish until proven wrong.
3:05:38Right? So this is the condition, right?
3:05:39Conditions are just if then statements.
3:05:41And you guys will see this is the
3:05:43reoccurring theme in all of my daily
3:05:45biases that I have sent out. I give
3:05:46myself if then statements. If this
3:05:48happens, then I will do this. If this
3:05:50gap gets respected and we start
3:05:51respecting bullish and disrespecting
3:05:53bearish to the upside, then I'll be
3:05:54bullish. If we disrespect bullish and
3:05:56respect bearish and we have draws lower,
3:05:58I'm going to be bearish. Right? So, it's
3:06:00all about being not only predicting the
3:06:02market. Prediction is huge, but also
3:06:04just reacting to what the market is
3:06:06telling you. That is so huge when it
3:06:08comes to trading. Okay? So, I want you
3:06:09guys to know that. All right. All right.
3:06:10So, if you take a little bit of a closer
3:06:11look here, you can obviously see see we
3:06:12are inside of a 30-minute bullish rally
3:06:14gap. We have Asia lows. We have an I
3:06:16don't know why I put Asian lows, but
3:06:17whatever. We have a new week opening gap
3:06:19as well. All right. So, looking at this,
3:06:20right, I want to ask yourself ask
3:06:22yourself these questions. Are we Why is
3:06:24the market moving? Are we seeking
3:06:25liquidity? Are we rebalancing
3:06:26equilibrium? Are we rebalancing in
3:06:28efficiencies? What are we doing here? In
3:06:29this example, we would not only be
3:06:31seeking out liquidity being Asia lows,
3:06:33but we are also looking to rebalance
3:06:35inefficiencies here. What do we have? A
3:06:37new opening gap. an unfilled new week
3:06:39opening gap. A very very strong
3:06:42inefficiency that the market loves to
3:06:43rebounce back to. So that's the reason
3:06:45the market's moving to rebalance in
3:06:47efficiencies, rebalance this range and
3:06:49target Asia lows. So that's a reason
3:06:51that the market is going to be moving
3:06:53here. Cool. Now, how do we actually find
3:06:55your drawn liquidity? Well, let's see.
3:06:56Are we delivering from buy side or
3:06:58sellside liquidity here? We're clearly
3:06:59delivering from what? Buy side
3:07:00liquidity. And what fair value gaps are
3:07:02we respecting versus disrespecting?
3:07:03Well, we have a fair value gap right
3:07:05here. Right now we are currently not
3:07:06disrespecting this gap but we can assume
3:07:08that now if this gap were to get
3:07:10inverted were to get closed through and
3:07:12get disrespected where is the next draw
3:07:14liquidity? Asia lows and new week
3:07:15opening gap and lower and let's see what
3:07:17the market does from here. And if we
3:07:18play this out we had a 30-minute bearish
3:07:20closure right there and then we ended up
3:07:22ripping or dumping down towards Asia
3:07:25lows and that new week opening gap. So
3:07:27really really really solid idea here.
3:07:29Really obvious bearish bias coming to
3:07:31this day. Absolutely smacked a banger
3:07:33trade on this day. Um, and yeah, it was
3:07:36a really obvious draw liquidity. Again,
3:07:37really, really obvious trade. And that
3:07:39was just again from the simple framework
3:07:40that I'm teaching you guys right now.
3:07:42Get into a couple more examples here.
3:07:43All right, let's take a look at this
3:07:44example here. I said, "Good afternoon,
3:07:45boys." Here I was trading PM session.
3:07:47This one I used to trade PM session.
3:07:49Don't recommend this again. Um, this is
3:07:50just different times. I've obviously
3:07:52refined my trading a lot to the point
3:07:53where I don't trade PM session. I only
3:07:55trade AM session. But this is still a
3:07:57good example, right? Buy still applies
3:07:58here where I had a bullish bias coming
3:08:00into PM. Why? Because we topped an
3:08:01hourly order block, swept AM lows.
3:08:03That's just an order block is just an
3:08:05ICD concept that is a PD array, right?
3:08:08And I'm not going to get too into that
3:08:09now. I don't really even use order
3:08:11blocks that much anymore. So, I just
3:08:13recommend you guys just pay attention to
3:08:15what you know, which is just we swept
3:08:16out AM lows here. Beautiful. And we
3:08:18tapped into a higher time frame key
3:08:20level down here. Now, I'm looking to see
3:08:21us rebalance towards the unifi
3:08:2315-minute, 5m minute, and potentially
3:08:25equal highs. So, let's go back to the
3:08:27drawing board here, right? Why is the
3:08:28market even moving in this scenario?
3:08:31Well, we are moving because we want to
3:08:33rebalance towards the unfilled 15-minut,
3:08:345 minute and potentially equal highs.
3:08:36So, we are moving to not only see
3:08:37liquidity being these equal highs that
3:08:40we have above us, but also to rebalance
3:08:42inefficiencies, right? We want to
3:08:44rebalance inefficiency here. We have
3:08:46unfilled 15-minute gaps. We have an
3:08:47unfilled 5minute fale gap, unfilled for
3:08:49gap. So, this is a great draw on
3:08:51liquidity for the market, right? So,
3:08:53that's the reason the market is moving
3:08:54here. And how can we confirm that the
3:08:56market is going to go there? Well, let's
3:08:57see. Are we delivering from buy side or
3:08:59sell side? We are clearly delivering
3:09:00from sell side. And what for rally gaps
3:09:02are we respecting versus disrespecting?
3:09:03Well, we are disrespecting bearish gaps
3:09:05and we are respecting bullish from this
3:09:07displacement. Okay. And we can confirm
3:09:08that and uh let's see what happens. As
3:09:10you can see here, the market ripped up
3:09:12and we targeted those unfilled for rally
3:09:14gaps right there. So really really solid
3:09:16idea here in PM session. And again, I
3:09:18don't really trade PM session anymore,
3:09:20but this is just a a good example. Okay,
3:09:22let's do it again. Okay guys, I'm going
3:09:23to ingrain this into your freaking head.
3:09:26Okay, so this example here, what are we
3:09:27doing? Bullish buys coming into the
3:09:29morning, right? We swept out 4hour
3:09:30liquidity and we are delivering from the
3:09:324-hour bissy which is a bullish for
3:09:33rally gap. A bissy is a bullish for
3:09:35rally gap and a cibby is a bearish
3:09:36rally. Okay. Inverting the bearish gap
3:09:38respecting bullish disrespecting
3:09:40bearish. Meaning what? We're going to go
3:09:42higher. Targets being previously high
3:09:43potentially equal highs. Not expecting
3:09:44good action. Blah blah blah. It's
3:09:46Monday. Blah blah blah. Okay. All right.
3:09:47So looking at this, what are we doing?
3:09:49Why is the market moving in this
3:09:50scenario? Well, we have equal highs here
3:09:52and we also have very clear 4hour
3:09:54buyside liquidity here. We have a 4hour
3:09:55intermediate high, right? This is a high
3:09:57resting within a federal gap. This is a
3:09:59great draw on liquidity. This is a great
3:10:00target. So the market is moving here to
3:10:02seek out liquidity. Cool. Now let's go
3:10:04here. How do we know that the market is
3:10:06going to get there? What are we doing?
3:10:07Are we delivering from buy side or sell
3:10:08side? We're delivering from sell side.
3:10:10Check. Check on that. And what fs are we
3:10:12expecting or disrespecting? Does it look
3:10:14like this exact photo right here? It
3:10:16literally does, right? We are
3:10:18disrespecting bearish as you can see.
3:10:19And we are probably going to respect
3:10:21bullish if we come back down here and we
3:10:22can get that confirmation. But we're
3:10:24clearly just disrespecting bearish. And
3:10:25we are respecting bullish all the way
3:10:27down here, right? We're delivering off
3:10:28this gap down here on the 4 hour. Okay.
3:10:30So, what are we doing? Respecting
3:10:31bullish gaps, disrespecting bearish
3:10:33gaps, and we have a drawn liquidity
3:10:34higher. And what does the market do? It
3:10:36absolutely rips up and hits this buy
3:10:38side liquidity right there after closing
3:10:40through this gap. So, really, really
3:10:41nice. Delivering from sell side,
3:10:42delivering from a higher time from gap
3:10:44and disrespecting bearish. And we
3:10:45obviously rip up and target that bias
3:10:47liquidity there. And I think we also
3:10:48ripped up on this day towards equalize.
3:10:50I don't really remember, but yeah. All
3:10:51right. So, I'm going to keep doing these
3:10:52guys. I'm I'm not going to stop here.
3:10:54But bullish buys coming into the
3:10:55morning. We have an S&P with previous
3:10:57day low. I'm looking to see us trade in
3:10:58equilibrium with the hourly range up
3:10:59into this 15-minute civ. From there,
3:11:01that gap is my condition, right? What is
3:11:02a condition? It's an if then statement.
3:11:04If this happens, then I'll do this. If a
3:11:06gap gets disrespected, then I'll do
3:11:07this. If a gap gets respected, then I'll
3:11:09do this. Right? So, this gap is my
3:11:10condition. Meaning, if it gets violated,
3:11:12if it gets trade through and there's
3:11:13displacement through OT, which is just
3:11:15like past equilibrium of a range. So, OT
3:11:18would be here. Then we get displacement
3:11:19through that. I'll take long towards
3:11:21London highs. Let's say we respect it
3:11:23and form lower time frame confirmation
3:11:24and trade back lower. I'll look to take
3:11:26shorts targeting the recent low. Very
3:11:28simple bias, right? So, we're looking at
3:11:30this photo here, right? And how did I
3:11:32really come to this conclusion? That was
3:11:33cool. How did I Okay, let's just look at
3:11:35this range, right? Why would the market
3:11:36even be moving in the first place here?
3:11:38Well, I said I want to see it move
3:11:40because I want to see it rebalance
3:11:41towards equilibrium in this range. We
3:11:42have this very large range and we want
3:11:44to see price rebalance towards
3:11:45equilibrium. So, rebalance equilibrium
3:11:47and also to rebalance inefficiencies
3:11:49here and potentially seek liquidity. We
3:11:51have London highs here stacked up with
3:11:53these highs, relative equal highs,
3:11:54right? So these are great draws in
3:11:56liquidity and all three are in play
3:11:58here, right? Not only are we looking to
3:12:00seek out liquidity, but we're also
3:12:01looking to rebalance the NFT equilibrium
3:12:03and also rebalance this inefficiency. So
3:12:05there's a lot of reasons to for price to
3:12:07move up. And what are we doing? Are we
3:12:08delivering from buy side or sell side?
3:12:10Well, we are delivering from sell side
3:12:11here. Why? Because we have a bullish SMT
3:12:13here, meaning ES ended up sweeping out
3:12:14this low. ENQ didn't. We're delivering
3:12:16from sellside. Very nice. and we are
3:12:18disrespecting bull or not really in this
3:12:20case but kind of as you can see here
3:12:21we're dispecting this bearish gap here
3:12:23right not really respecting bullish yet
3:12:25but you know we'll probably get that
3:12:26displacement back up and we can assume
3:12:28that okay so that's how I found my draw
3:12:30on liquidity right a lot of draws higher
3:12:32a lot of reason for the market to move
3:12:33up and we're delivering from sellside
3:12:34here and we got a reaction from that
3:12:36that's the main important thing here and
3:12:38the other thing I wanted to state what I
3:12:39talked about in the daily bias was what
3:12:41was that we had this gap as a condition
3:12:43right so if we respected this and we
3:12:45started getting displacement lower then
3:12:46I'll be bearish if If we disrespected
3:12:48this gap here and this is the condition.
3:12:49If we disrespect this and where can we
3:12:51expect price to go? London highs, right?
3:12:52So initially when I'm coming to the day
3:12:54like my initial bias, I'll be bullish
3:12:56until this. And how I'll play it is I'll
3:12:57be like, okay, I'll look to longs for
3:12:59this. Let's say I get longs. Boom. I'm
3:13:00done for the day. I took my low hanging
3:13:02fruit. I took my, you know, trade
3:13:03towards that. That's when I'm super
3:13:04confident and I'm done. Let's say I
3:13:06don't get an entry towards there for
3:13:08some reason. And then I'm going to wait
3:13:09and see how price is reacting off this
3:13:11level. Let's say it completely
3:13:13disrespects this, says f you to this,
3:13:15and just rips through this. Okay, then
3:13:16I'm going to be bullish and look to
3:13:17target London highs. Right? So that is
3:13:19like how I'm forming my bias. I'm always
3:13:21forming myself these if then statements
3:13:23coming into every single day. Okay? And
3:13:25that's what you have to be doing as a
3:13:26trader. And as you see, what did we do?
3:13:28We end up trading up. We ended up
3:13:30disrespecting this gap here. As you can
3:13:32see, we closed above it with this
3:13:33candle. Disrespected it. And what did we
3:13:35do? Came back in this range. Respected
3:13:37these bullish gaps here. Disrespecting
3:13:38bearish. Respecting bullish even more.
3:13:40Showing more signs of bullish
3:13:41confirmation. And we end up trading up
3:13:43towards London highs. Can we hit that
3:13:45buy side liquidity? Right? This is all
3:13:47very very simple. You guys over
3:13:48complicate trading a lot, but it's
3:13:50really like bias and drawn liquidity. It
3:13:53is broken down into these simple steps.
3:13:56Looking at the chart exactly like this,
3:13:58okay, it's very simple. Okay. Now, I'm
3:13:59going to show you guys an example of
3:14:01what it looks like when I have a neutral
3:14:02bias because there are some days where
3:14:04I'm coming to the market and I don't
3:14:06really know what we're going to do. I'm
3:14:07not I'm not hardleaning bullish and I'm
3:14:09not hardleaning bearish, right? So, what
3:14:10am I going to do as a trader? Well, I'm
3:14:12going to set myself those conditions,
3:14:14right? Those if then statements. If I if
3:14:16price does this, then I will do this.
3:14:18Okay, so that's what I'm doing, right?
3:14:19So, neutral buys come in the morning
3:14:21rangebound conditions, right? 4 hour
3:14:22sell model, whatever. So, I'll be
3:14:24leaning maybe a little bit more bearish.
3:14:25See if 9:30 can do this higher. Push
3:14:26previous day high. Bunch of yap. The 1
3:14:28hour gap is the condition, right? So,
3:14:30this gap is the condition. If respected,
3:14:32we should see what previous day high. We
3:14:34should see this daily gap and we should
3:14:35see price go higher. But if this gets
3:14:37disrespected, then I'll probably expect
3:14:39these relative equal lows. We kind of
3:14:40left relative equal lows here. And this
3:14:41is also like the really important thing
3:14:43that I want you guys to have and to know
3:14:44when it comes to draw on liquidity, when
3:14:46it comes to bias and everything is just
3:14:48because you have a draw on liquidity
3:14:50doesn't mean that the market has to go
3:14:52there at that time. Okay, that's really
3:14:54important. That's what I want you guys
3:14:56to know that you know we can have a draw
3:14:57liquidity lower. You see we have
3:14:58relative lows here. Does that mean that
3:15:00the market has to go there? No. Right?
3:15:01That can be an idea but not until you
3:15:04start seeing clear displacement to that
3:15:06area is when you want to be targeting
3:15:07it. Right? You always want to be
3:15:09reacting to whatever the market is
3:15:10telling you. If the market reacts off
3:15:12this hourly gap and holds bullish and
3:15:14starts pushing up, what can you expect
3:15:16for price to go for that daily for gap
3:15:17for previous day high? Okay, so that's
3:15:19really important. And what did price do
3:15:21here? Well, we end up trading up or
3:15:22trading down, sorry, at open, hitting
3:15:24this bullish for gap on the hourly time
3:15:26frame, respecting it, getting
3:15:27displacement back up and we absolutely
3:15:29ripped up towards this rally gap. So
3:15:31what did this gap do here? It got
3:15:32respected. Okay. And what did it not do?
3:15:34It didn't get disrespected, right? So we
3:15:36didn't go down. It got respected and
3:15:38that's the main thing. And sorry, I
3:15:39forgot to go back to the drawing board
3:15:40here. But why was the market moving in
3:15:42this scenario? Well, we were delivering
3:15:43from sell side. We were delivering from
3:15:45previous day low, a key level, right?
3:15:46And why should the market move here to
3:15:48seek out liquidity, right? We had a
3:15:49daily foral gap with previous day high.
3:15:51So, not only is this an inefficiency,
3:15:53it's an unfilled gap, but it's also a
3:15:55really good draw on liquidity, right?
3:15:56It's liquidity pool, fair rally gap, um,
3:15:58previous day high. So, we're rebalancing
3:16:00inefficiencies as well as seeking out
3:16:02liquidity here. We have a bunch of
3:16:03failure swings as well. You guys see
3:16:04these failure swings on the way up. So,
3:16:06again, really good draws here. And then
3:16:08how do you find your draw on liquidity?
3:16:09Are we delivering from buy side or sell
3:16:11side? Well, let's see. Are we delivering
3:16:13from buy side or sell side here? We're
3:16:14delivering from sell side. Previous day
3:16:15low, right? And what gaps are we
3:16:17respecting versus disrespecting? We are
3:16:18clearly disrespecting this gap here. If
3:16:20you zoom in really close here, you can
3:16:21see we have a fair gap right here that
3:16:23disrespected and then this gap here is
3:16:25getting respected and that's how we
3:16:26ended up ripping up. All right guys,
3:16:28well that's going to wrap it up for this
3:16:29lesson on daily bias and draw on
3:16:32liquidity. Okay, this was a super super
3:16:36saucy lesson. Um, again guys, re-watch
3:16:38this if you have to go back in the
3:16:40charts. And this is what I want you guys
3:16:42to do coming into every day is to have a
3:16:44journal. Okay? Have a journal and write
3:16:46out your if then statements. If price
3:16:48does this, then I will do this, right?
3:16:50Not only is trading about having
3:16:52predictions in the market, but it's also
3:16:54about being reactionary like I was
3:16:55saying. Okay? So, reacting to whatever
3:16:57price is telling you. If price is
3:16:59clearly pushing up like I was showing in
3:17:01these examples and we are obviously
3:17:03displacing towards an obvious drawn
3:17:06liquidity, then what should you be
3:17:07doing? Being in a bullish bias and
3:17:09looking to take longs and vice versa,
3:17:11right? So, don't be married to a bias.
3:17:13That's the main point I'm getting at in
3:17:14this video. Don't be married. Always be
3:17:16reactionary and always have predictions.
3:17:18Always have if then statements. Don't
3:17:20just be completely one-sided in the
3:17:22market cuz you will get [ __ ] Okay?
3:17:24That's the main lesson that I learned
3:17:25and that's the main thing I see a lot of
3:17:26beginners struggle with is they have
3:17:28they just get married to a bias. So,
3:17:30make sure you don't do that. Okay,
3:17:31enough yapping though. That's going to
3:17:32wrap up this lesson on daily bias, drawn
3:17:35liquidity, and conditions. I'll see you
3:17:36guys in the next one and that's going to
3:17:38be lesson number 10. And I'm going to
3:17:40talk about my model and putting
3:17:41everything that I've taught together
3:17:43into one, you know, into an actual
3:17:45execution from a top- down analysis. So,
3:17:47we're going to get into that in the next
3:17:48lesson. And then from there, I'm going
3:17:50to give you guys a full entire game plan
3:17:52from paper trading to valuation to when
3:17:54to actually start your funded account.
3:17:55So, we'll get into that in a second.
3:17:56I'll see you guys in the next lesson.
3:17:57What is going on? Welcome to lesson
3:17:59number 10 in the free course. For this
3:18:00lesson, we're going to be going over my
3:18:02model, the PB Blake model, the mech
3:18:03model, whatever you want to call it, and
3:18:05I'm so excited for this guys. is going
3:18:07to be combining all of the concepts that
3:18:08I've taught you guys from liquidity to
3:18:10fair value gaps to market structure to
3:18:12bias into one into one final model so
3:18:16you guys can actually fully understand
3:18:18how to place and execute a trade and you
3:18:21can start making money in the stock
3:18:23market. All right, this is what it all
3:18:25comes down to this lesson right here. So
3:18:27hopefully you guys have been paying
3:18:28attention to the previous lessons and
3:18:30everything because in writing notes
3:18:32because all those previous lessons, they
3:18:33are now going to be applied for this one
3:18:36lesson we have right here for lesson
3:18:38number 10 in the series. So I'm super
3:18:39hyped for this guys. Hopefully you guys
3:18:41are hyped too. And let's get into this.
3:18:43All right, so in front of me we have the
3:18:44PB Blake model. First thing I want to be
3:18:46talking about before even getting into
3:18:48the actual entry criteria and placing
3:18:50trades is context. Because context is so
3:18:53huge for placing a trade. Whether or not
3:18:55you're trading inversions, whether
3:18:56you're trading CISD entries, whether
3:18:58you're trade or not trading break a
3:18:59structure for val gap taps, right? You
3:19:01still need to have context in order to
3:19:03take a trade. Okay, so that's really
3:19:05important. And let's get into it. So,
3:19:06first things first, I trade personally
3:19:08from 9:30 a.m. to 11:00 a.m. Eastern
3:19:10time. I trade New York AM session.
3:19:12That's just the session I like trading.
3:19:14Whether or not you can trade New York AM
3:19:15session is completely up to you. I trade
3:19:18with NASDAQ futures. And again, that is
3:19:20when I find New York AM session to be
3:19:22the cleanest. And when I find sorry,
3:19:24NASDAQ to be the cleanest is during New
3:19:26York AM session, right? Because it is a
3:19:28US index. If you can't trade during New
3:19:30York session, you can only trade like PM
3:19:32or like London session, just know that
3:19:34it is probably going to be a little bit
3:19:35worse volatility, but it definitely is
3:19:36possible to be trading in them. I know a
3:19:38lot of traders that trade during like
3:19:40London session are profitable, of
3:19:41course. So, it's just a matter of back
3:19:43testing and stuff, right? So, just back
3:19:44test, understand its nuances because it
3:19:46moves slightly different from New York,
3:19:48right? there are a little bit more equal
3:19:50highs and equal lows. They don't hold as
3:19:51much weight as it does during like New
3:19:53York session. So there's just different
3:19:55rules I think that you have to apply to
3:19:56when trading like London session and a
3:19:59session. So just something to look into
3:20:00if you are trading those sessions. But
3:20:02if you are trading New York AM session
3:20:04and you're lucky enough to do so trade
3:20:05from 9:30 a.m. to 11:00 a.m. Eastern.
3:20:07Okay, so this is the time period. It's
3:20:09an hour and a half. It is all you need,
3:20:11right? And sometimes I'll trade a little
3:20:13bit after AM session like 11:00 if there
3:20:16are opportunities after and if AM
3:20:19session was really really choppy. That's
3:20:20what I talked about in the time video,
3:20:21right? Sometimes if AM is really really
3:20:23bad, sometimes PM will be good and clean
3:20:25it up. But nine times out of 10, you
3:20:27guys will see me take trades within this
3:20:28time period of 9:30 a.m. to 11:00 a.m.
3:20:30Eastern. And this is that New York
3:20:32session. And um again, use this
3:20:33indicator IC kills and pivots. Next up
3:20:36is number two, London and Asia session
3:20:38highs. Why do I have this here? Well,
3:20:39you need to have a confident higher time
3:20:41frame draw on liquidity. This is super
3:20:44super important and we already talked
3:20:45about this with the draw on liquidity
3:20:46lesson. So, I don't have to get too into
3:20:48in depth with this, right? But
3:20:49understanding if we are again delivering
3:20:51from sell side, disrespecting bearish,
3:20:53respecting bullish, you guys know this
3:20:55already, then what is the bias going to
3:20:56be bullish and we need to have some sort
3:20:58of draw liquidity for the market to move
3:21:00up? Why is the market moving? Right? So,
3:21:01go back to that video, ask yourself
3:21:03those questions and same thing if you're
3:21:04bearish. If you're delivering from buy
3:21:06side and you're disrespecting bullish,
3:21:08respecting bearish and there's a reason
3:21:09for the market to go lower. Let's say
3:21:11there's we need to rebalance a range, we
3:21:13need to rebalance into an inefficiency
3:21:15like a new week opening gap or
3:21:16something, right? So make sure you have
3:21:17a confident higher time from draw on
3:21:19liquidity and you are trading alongside
3:21:22that trend. Okay? You do not want to be
3:21:24trading counter trend. You don't want to
3:21:25be shorting when we have, you know,
3:21:27London Asia highs right there or a new
3:21:28week opening gap right above you and
3:21:30we're heavily displacing towards there.
3:21:31You don't want to be shorting against
3:21:32that. you want to be alongside that
3:21:34trend, right? And then number three is
3:21:35having a confident or just a higher time
3:21:38frame key level. Okay, so your key level
3:21:40is going to be fair value gaps and it's
3:21:42going to be liquidity pools. So
3:21:44personally, I use anywhere from a 5m
3:21:46minute for value gap and above to as my
3:21:49higher time frame key level. And I'll
3:21:50get more into this when I'm discussing
3:21:52the model, but basically if I'm trading
3:21:55off of a 5minute rally gap, and that is
3:21:57my minimum, I need price to at first
3:21:59have tapped into at minimum a 15-minute
3:22:02fal gap and above. So, I'll use the
3:22:0415-minute time frame. I'll use the
3:22:05hourly, the 4hour, the daily as my ralli
3:22:08gaps, right? So, let's say price has
3:22:10tapped into a 1 hour for ralli gap,
3:22:12right? Let's say it's happened over
3:22:14here. We start displacing. Ideally, I'd
3:22:16want to be getting in like off this in
3:22:18and I'm going to show you guys my entry
3:22:20model, but I ideally want to be getting
3:22:21in off of here, right? And have this
3:22:23initial reaction off of this hourly for
3:22:25valley gaps. Yeah. But let's say I
3:22:27somehow miss that entry, right? and we
3:22:29start getting displacement up. Then if
3:22:31we end up creating a 5minute fraal gap
3:22:33from that and the move has been
3:22:35sponsored from this hourly frale gap and
3:22:37we open up a 5minut gap right here then
3:22:40it is still okay for me to be taking
3:22:42trades off of this 5minute gap because
3:22:45we are higher time frame delivering from
3:22:47an hourly for value gap. Does that make
3:22:49sense? Right. So we still have our
3:22:51higher time frame key level and I still
3:22:53always need to see some sort of higher
3:22:54time from key level. So a 5 minute is
3:22:56not enough. Right? I still need to see
3:22:58more. But let's say again I miss that
3:23:00initial entry off of this and then I
3:23:02want to wait for more confirmation in
3:23:03form of like a five minute then boom,
3:23:05right? But I still need to be delivering
3:23:08off of what a higher time from key
3:23:10level. So what is your key levels?
3:23:11Right? We briefly not briefly we had a
3:23:13whole entire video on this with the
3:23:15liquidity part two and advanced
3:23:17liquidity concepts lesson that I did
3:23:19with you guys. And what I was talking
3:23:20about was mainly like previous day high,
3:23:23previous day low, right? Those are great
3:23:24key levels to have. And the main thing
3:23:26that I want you guys to understand with
3:23:28key levels is that these sessions like
3:23:31liquidity and like Asia session highs
3:23:33and lows and London session highs and
3:23:34lows. If we are looking for a rejection
3:23:36off of any of these areas in any of
3:23:38these liquidity pools, it always has to
3:23:40be within a fality gap. Okay? So what I
3:23:43mean by that is let's say this is
3:23:45previous day low, right? Let's say this
3:23:47is previous day low. This is a valid key
3:23:50level to be taking a trade-off, right? A
3:23:52key level is just an area where you see
3:23:53price reject. This right here is a valid
3:23:55area to be taking a trade off of right
3:23:57here. Previous day low. Why? Not only
3:23:59because it's previous day low, but
3:24:01because it's also inside of a feral gap.
3:24:03Okay. And then also unmitigated gaps are
3:24:06also great areas to be taking trades off
3:24:08of if you're, you know, taking a long
3:24:09off of this. This is also a valid key
3:24:11level, right? Like what I was just
3:24:13saying, like a 5minute gap or 15-minute
3:24:14gap, hourly, 4 hour, whatever. So, not
3:24:16only is this, but also valid key levels
3:24:18are going to be intermediate lows and
3:24:20intermediate highs inside a gap. So
3:24:22that's the main thing I want you guys to
3:24:23know is those are really the only places
3:24:24where I'm taking trades off of. It's
3:24:26either a for Valley gap or it's an
3:24:28intermediate low or intermediate high
3:24:30resting inside of for Valley Gap. I am
3:24:31not going to be taking a trade for
3:24:33example today, right? There was Asia
3:24:36highs. Okay, if we look at price today,
3:24:38there was Asia highs. Let's see where
3:24:40was Asia highs today. All right, just
3:24:42because this is session liquidity
3:24:45doesn't mean that this is a valid
3:24:46liquidity pool to be taking a trade off
3:24:49of. Right? Why should I be shorting
3:24:50here? Right? There's no reason to be
3:24:52shorting here. And this is what I want
3:24:53you guys to know. And this is, you know,
3:24:54what I was mainly talking about with
3:24:55like the liquidity video. But it is not
3:24:57valid to be taking shorts just because
3:24:59it's session liquidity. But if it was
3:25:01inside of a higher time frame key level
3:25:03or if it was like at the high day or
3:25:05like previous day high or if it was
3:25:06inside of like a higher time frame for
3:25:09gap, then sure. But like even this is
3:25:11not really valid to be taking short off
3:25:12because we still have like higher draws
3:25:14and we're not inside of a feral gap,
3:25:16right? Versus here like this hourly,
3:25:19right? this is valid to be taking a
3:25:20trade off of. Why? Because it's inside
3:25:22of a gap. So, I'm always looking at gaps
3:25:24and liquidity pools or I'm just looking
3:25:27at a gap, right? But you can see we
3:25:28heavily disrespect that. And then what
3:25:30do we do? Even though this is like
3:25:32previous day high, we still just heavily
3:25:34displace through that because there was
3:25:36really like there was just draws higher,
3:25:37right? But that's what I want you guys
3:25:38to start paying attention to is like are
3:25:40we inside of an obvious feral gap? Are
3:25:42we inside of an obvious level? And
3:25:44that's the main things I look at when it
3:25:46comes to higher time frame key levels is
3:25:48whether or not it's inside of a fur
3:25:50valley gap. If it's not inside of a
3:25:51furvali gap, then I'm not taking the
3:25:53trade, right? So either it's a low or
3:25:55high resting in the gap or it's an
3:25:56unmititigated gap and then I can take
3:25:58the trade off of that. So this is the
3:26:00context I need in order for me to place
3:26:02a trade. Again, 9:30 a.m. to 11:00 a.m.
3:26:05Eastern. That's just when I trade New
3:26:06York AM session. I need to have a
3:26:07confident higher time frame draw
3:26:09liquidity. I need price to be heavily
3:26:10displacing towards an obvious level. And
3:26:12then I need to have a confident higher
3:26:13time frame key level or just a higher
3:26:15time frame key level, right? Which is
3:26:17what I just explained. So now that we
3:26:18have this covered, let's hop into the
3:26:19entry criteria. I'm going to talk about
3:26:21inversion for valley gaps. I'm going to
3:26:23talk about how to place your stop loss,
3:26:24how to take place your take profit, and
3:26:26how to actually execute the trade. And
3:26:28then after that, we'll get into some
3:26:30examples. But yeah, let's hop into the
3:26:33entry criteria. Let's get into it. All
3:26:34right. Now, it's time for the actual
3:26:36execution of the trade. Okay. So I need
3:26:39three things actually for me to actually
3:26:41execute this trade. One being I need to
3:26:44have the highest time frame inversion
3:26:46for value gap in the leg. Okay. So what
3:26:48does that mean? You guys know about
3:26:50inversion for value gaps, right? You
3:26:51know about gaps getting disrespected
3:26:53versus respected. I take trades off of
3:26:55gaps getting disrespected. So you can
3:26:57see here this gap gets disrespected once
3:27:00the body has closed through. That is
3:27:02when I'm placing my market order and I'm
3:27:04placing my entry and I'm getting into
3:27:06the market. Same thing here. Once this
3:27:07gap has closed through this gap, then
3:27:09boom, I'm taking my market order. I'm
3:27:11taking my entry. Okay? And I need the
3:27:13highest time frame if in the leg. So if
3:27:16there's a one minute gap, right? You
3:27:18might be looking at a chart and there
3:27:19might be a one minute gap. Then there
3:27:21might also be a two-minute gap. There
3:27:22might also be a three-minute gap, but
3:27:23there might not be a 4m minute and 5
3:27:25minute, then what time frame IG do you
3:27:27take? The three minute, right? If
3:27:28there's a two-minute and no three
3:27:29minute, then take the two-minute. If
3:27:30there's if there's a three minute and a
3:27:32four, you guys know the deal. If there's
3:27:33only a one minute and that's the highest
3:27:35time frame, then take the one minute.
3:27:36And sometimes I do hop on to the 30-cond
3:27:38if there's no 1 minute, right? And I'll
3:27:40look for the highest time from there.
3:27:41Not necessary, especially as a beginner
3:27:43trader and when you guys are just
3:27:44starting to learn the model because
3:27:45again getting 30 secondond chart at this
3:27:47time is pretty expensive. I believe it's
3:27:48around $50 a month or something. But
3:27:50paying for the seconds chart maybe a
3:27:52year or two into your career of trading
3:27:54could definitely be a thing where you
3:27:55guys want to look into. But um yeah, for
3:27:57now just look and pay attention to the 1
3:27:59minute to 5 minute time frame for your
3:28:01IFVG. I don't look at like the 6 minute
3:28:037 minute. I also don't look at, you
3:28:05know, the 8 minute, 9 minute, 10 minute,
3:28:07right? I'm really just looking at the 1
3:28:08minute to 5 minute since I am trading on
3:28:10that, right? I use the 1 minute to 5
3:28:11minute for my executions and I use the
3:28:1315-minute, hourly, 4 hour and all that
3:28:15for my bias. So, I'm not going to be
3:28:16taking trades on that time frame, of
3:28:18course, right? And I'm looking at a lag
3:28:20by looking at the swing high to low that
3:28:22hit the key level, right? So, my key
3:28:24level, let's say it was previous day
3:28:26high and let's say we have a swing here
3:28:28from we have another thing here. We have
3:28:30a swing high to low. Well, I'm looking
3:28:31at the highest time from this gap. So
3:28:33sometimes there's going to be a 1
3:28:34minute, sometimes there can be a
3:28:35two-minute. I can go on the higher time
3:28:36frame there's a 2 minute and then I'll
3:28:37look at the 3minut and then there's no
3:28:39for value gap in this leg. Then I won't
3:28:40take the one minute, I'll take the 2
3:28:42minute, right? So I identify my leg like
3:28:44that and um yeah, just waiting for a
3:28:46close on the highest time frame. As I
3:28:48said here, like higher time frame is
3:28:49always going to hold higher power. So
3:28:51waiting for the higher time frame close
3:28:53is always always going to give you like
3:28:55the best possible win rate is always
3:28:57going to get you the best win rate. It's
3:28:58not always going to get you the best
3:28:59riskreward, but here we're trading a low
3:29:01RR, high win rate model, which is
3:29:03really, really good for beginners and
3:29:05really good for anyone to understand.
3:29:06And it's also good and works for me as a
3:29:08an advanced ICT trader, right? So, yeah,
3:29:10it's always going to give you the best
3:29:11win rate because you know that
3:29:13everything in the leg has been
3:29:15disrespected. So, you know, that's the
3:29:17true confirmation that order flow has
3:29:19flipped and has confirmed in your
3:29:21direction, right? And that's pretty much
3:29:24it with high sign fromg. I'll show you
3:29:26like a quick example of what that looks
3:29:28like. So, if we look at like the chart
3:29:29today, we can look at this right here.
3:29:31Okay. So, if we look at this trade,
3:29:34there was a key level being a 30-minute
3:29:36for valley gap, right? This was also
3:29:38what a 15-minute intermediate low. So,
3:29:40that is a beautiful key level. Right?
3:29:42Now, with this trade here, right, we're
3:29:44going to look and look at these time
3:29:45frames, right? And you see that there is
3:29:47a fat 1 minute for gap. Okay? We're
3:29:49looking at this trade right now. We're
3:29:50looking to take this trade. And how do I
3:29:51know that this is my leg? Well, this is
3:29:53the swing high and then this is the
3:29:55swing low and this is the move that hit
3:29:57this key level here. So, this is my leg
3:29:59and I want to be looking at the gaps
3:30:00within this leg right here. Okay, so I
3:30:02know that, right? So, I'm going to be
3:30:04looking at this leg right here and I see
3:30:05that we have a big one minute gap. Well,
3:30:07I'm also going to check on the higher
3:30:09time frames to see if we have any more
3:30:10feral gaps or if this is the only one.
3:30:12So, I'm going to look at the two-minut.
3:30:13Do we have a two-minute in this leg?
3:30:14Yes, we do. We have a 2-minute right
3:30:16here. Do we have a 3minut? Yes, we do.
3:30:17We have a 3minut. Did we open up a
3:30:194-minute? No, there is no form in this
3:30:21leg. You can see that there's no for
3:30:22value gap here. So, what is the highest
3:30:23time from here? The 3 minute. So, I'm
3:30:25going to wait for the 3 minute to close.
3:30:26Once the 3minut closes, then I'll take
3:30:28my entry. So, does that kind of make
3:30:29sense? Hopefully, it does. We're going
3:30:30to show you I'm going to show you guys
3:30:31some examples in a second here. But
3:30:33that's basically just the gist of it of
3:30:35how you start trading that. Okay. Next
3:30:36up, target lowhanging fruit. Okay. So,
3:30:39what I mean by this lowhanging fruit is
3:30:41I'm really just looking for targets
3:30:44anywhere around and liquidity pools
3:30:46anywhere around like a one one
3:30:48risk-to-reward. Sometimes you'll see me
3:30:49hit one to twos, sometimes one to
3:30:51threes, but I'm usually taking trades
3:30:52around that one to one risk-to-reward.
3:30:54Now, why is this a case? Well,
3:30:56especially with inversion for valley
3:30:58gaps, inversion for valley gaps don't
3:31:00always provide the best riskreward like
3:31:01I was saying, but the win rate is really
3:31:03high. So, typically when you don't have
3:31:05the best riskreward and you know, you're
3:31:07taking trades, it's best to be targeting
3:31:09lowhanging fruit because if not, then
3:31:11trades are most likely going to go back
3:31:13to like break even and then run without
3:31:14you after hitting low hanging fruit.
3:31:16Every time we hit long hanging fruit, we
3:31:17usually have some sort of reaction off
3:31:19that. And let's say you're entering in
3:31:21your trade here because you got, you
3:31:22know, in on inversion and it might be a
3:31:24worse trade or sorry, worse entry, worst
3:31:26RR, then you're probably going to get
3:31:27break even. So I usually just target the
3:31:29lowhanging fruit. For example, in this
3:31:31scenario, you know, let's say this is a
3:31:3215-minute intermediate high. And then
3:31:33above us, we have, you know, all the way
3:31:35up above all-time highs, right? This is,
3:31:37you know, obviously an an exaggerated
3:31:39example here, but you know, you don't
3:31:40want to be targeting that high. You want
3:31:42to just be targeting that one one, the
3:31:44one to two, just things that you are
3:31:45really confident in, right? If you can
3:31:47expect price to have a reaction off of
3:31:49that level, to have price, if there is a
3:31:52reason for price to move back to your
3:31:54break even or move back to your stop
3:31:55loss after hitting that level, then take
3:31:57profits there. Take full profits. Take
3:31:59one to ones, your one to twos, cuz that
3:32:01in the end of the day, bro, that is all
3:32:02you need. Especially when we're trading
3:32:04prop firms, having, you know, that
3:32:06consistency rule in play, having, you
3:32:08know, winning days in play. That's why
3:32:10just trading a lower or high win rate
3:32:12system, sorry, vice versa, is really
3:32:14really crucial for trading prop firms,
3:32:15right? And also, I know a lot of you are
3:32:17going be like, "Oh, but like you don't
3:32:18trust in your overall analysis." And
3:32:20that's not the case, right? I could be
3:32:21having a super strong higher time frame,
3:32:24a really higher a confident higher time
3:32:26frame bias, right? Let's say like in
3:32:28this example, right, we have London and
3:32:30Asia highs. It's my really confident
3:32:31higher time frame bias. And let's say
3:32:33we're all the way down here and I'm
3:32:35taking this trade, right? Cool. I know
3:32:37right that the market is probably going
3:32:39to go up here right and price will have
3:32:41a magnet towards this area price will
3:32:43move up because of this right but
3:32:45there's a lot of times where price
3:32:47doesn't just run all this beautifully in
3:32:49AM session and we have beautiful price
3:32:51action and price moves 500 points right
3:32:53that's not always the case a lot of the
3:32:55times during New York AM session price
3:32:57action isn't the best we might have
3:32:58movements like this we might take this
3:33:00go like this might go like this this
3:33:03this and like personally me I do not
3:33:05want to be in trades that long. I don't
3:33:06want to be stressing out my psychology
3:33:08anymore. I'm not a swing trader, right?
3:33:10So, I'm taking what I'm extremely
3:33:12confident the market is going to hit and
3:33:14I'm taking my piece of the pie. At the
3:33:16end of the day with trading, that is all
3:33:17you need. You just need a piece of the
3:33:18pie to make money, right? And if price
3:33:21is magnetized towards this area, I don't
3:33:23even know if that's a [ __ ] word, but
3:33:24if price is going for this high, right,
3:33:26sometimes we can have again moves like
3:33:28this and I'm just using this simply as a
3:33:30magnet at the end of the day. Okay? So,
3:33:31low hanging fruit. Look at those and
3:33:33we'll get into some examples. And then
3:33:34finally for my execution for my stop
3:33:36loss placement what I'm going to be
3:33:38doing is I'm going to have a stop loss
3:33:39at the swing low or swing high.
3:33:41Sometimes we can have a really fat move
3:33:42and sometimes we have like a fur value
3:33:44gap within this. And sometimes like for
3:33:46example here you can put it at like the
3:33:47fur value gap low and it's not necessary
3:33:49to put it like at the external low low.
3:33:52But you know the the best stop loss here
3:33:54is usually just a swing low. It's always
3:33:55going to be the safest. Just do it. I
3:33:57made a mistake today of me not putting
3:33:58the stop loss at the swing low and I got
3:34:00absolutely cooked. So follow your rules,
3:34:02boys and girls, cuz if not, you're going
3:34:03to get cooked like me. And I put it here
3:34:04and I literally got like stop rated. So
3:34:07just know that stop loss of the swing
3:34:09low is always going to be the best. Just
3:34:10know that. Okay. So stop loss of the
3:34:11swing low. And that's pretty much it. I
3:34:13mean, we can get into now some examples.
3:34:15Also, when I talk about high sign from
3:34:18IFG, that also means if we're looking at
3:34:20like a leg like this, I see a lot of
3:34:22beginner traders make this mistake. You
3:34:23can also see that this leg, this is the
3:34:26only feral gap in this leg, right? This
3:34:28is singular. It's a singular feral gap.
3:34:30And right in this example I showed you,
3:34:32what was that 3minute gap there? It was
3:34:34singular, right? You can see here was
3:34:35the only gap within this leg, right? But
3:34:37I see a lot of people make the mistake
3:34:39of taking trades where we have an
3:34:42inversion here and then we have another
3:34:44gap right above this and then they're
3:34:45going to take the long right here. And
3:34:47I'm like, bro, you still have another
3:34:48gap right here. This is still holding,
3:34:51right? So price doesn't need to move
3:34:52yet. This is not confirmation that price
3:34:55is going to go higher because this is a
3:34:56bearish rally gap. This has not yet been
3:34:58inverted. So price can very easily
3:35:00reject off of this if your bias and draw
3:35:03is wrong and boom, you're you're
3:35:04screwed, right? So instead, wait for the
3:35:06highest time frame inversion and like go
3:35:08on like the 2-minute chart. If you go on
3:35:10the two-minute chart, there's probably
3:35:11going to be like the highest time frame
3:35:13if something. I don't know what it looks
3:35:15like, but you know, probably looks
3:35:16clean. And let's say this is now the
3:35:17two-minute chart and there's no 3minut,
3:35:19then take this 2 minute, right? So
3:35:21that's what I want you guys to note. And
3:35:22wait for that highest time frame and
3:35:24wait for it to be a singular gap in the
3:35:25leg. That is really, really, really
3:35:27important. And uh now we can get into
3:35:29I'll show you guys some trade examples
3:35:31and I'll show you like three or four
3:35:33trade examples I guess and yeah that's
3:35:35going to let's do that. All right so I'm
3:35:36going to get into a trade that I took
3:35:38earlier this month. Um this is an A+
3:35:40setup. This is an example of Plebe Blake
3:35:43model. All right let's get into it. So
3:35:45coming into the day uh first thing my
3:35:47entry criteria I need to be trading
3:35:48within 9:30 to11 which I am right. I'm
3:35:50waiting for 9:30 open very clearly here.
3:35:52Just waiting for that opening price.
3:35:54Waiting for that opening bell. Um, next
3:35:55up, I need to have a confident higher
3:35:57time from drawn liquidity, right? Either
3:35:58lower or higher. So, where am I
3:36:00confident that the market is going to
3:36:01go? Well, you can see that we are
3:36:03clearly disrespecting bullish,
3:36:05respecting bearish, right? We are
3:36:06respecting this bearish gap here on the
3:36:08hourly time frame. Let's see here. Let's
3:36:10look on the 15-minut time frame. What
3:36:11are we doing? 15-inut time frame, we're
3:36:13clearly just running through these gaps
3:36:15here and running through this gap as
3:36:16well. You see, we had this intermediate
3:36:18low here. Did we take this and then
3:36:19start just placing higher? No, we dumped
3:36:21through it. And what do we see lower?
3:36:23Where is the market trying to go and
3:36:24target? Well, we have sellside liquidity
3:36:26right resting right here. Right? So,
3:36:27expecting bearish, disrespecting
3:36:29bullish, and we have sellside liquidity
3:36:30resting below. We have relative equal
3:36:32lows below, right? Really, really strong
3:36:34draw. So, higher time frame draw is
3:36:36there. So, how I would go about taking a
3:36:38trade is always first look to see what
3:36:40price is doing right here. And you can
3:36:42clearly see that we have this feral gap,
3:36:44right? So, you can see we have this
3:36:45hourly fal gap, right? Pre-market price
3:36:48does what? We trade into it. Okay? So,
3:36:50let's just first also mark out our 9:30
3:36:52candle. Okay, 9:30. I'm waiting for
3:36:54open. I'm waiting for open. And what
3:36:56does open do? We end up opening. Okay.
3:36:58[laughter] Yo, rerun that. Okay. So,
3:37:01here we have open. And what are we
3:37:03delivering off of on the higher time
3:37:04frame? An hourly for valley gap. Okay.
3:37:06Now, we look at this leg here, right?
3:37:08And I didn't get that initial entry
3:37:10right off the hourly gap because why?
3:37:12Because it was it was open, right?
3:37:14Because it was pre-market. I was waiting
3:37:15for open. Okay. We also have lower time
3:37:17frame liquidity resting right here.
3:37:19Right? So, we can mark this out right
3:37:21there. Bada bing, bada boom. And when
3:37:23I'm looking at this leg here, what do we
3:37:25have? We have a 5minute internal high,
3:37:27right? We have an internal high resting
3:37:29within this 5minute gap. 5m minute
3:37:31internal high. And we can mark out this
3:37:32bearish rally gap right here. So, when
3:37:35I'm coming into this trade, right, or
3:37:36coming into the day, I'll give myself
3:37:38the scenario. And you got to give
3:37:39yourself these if then statements,
3:37:41right? Exactly what I was saying when
3:37:42I'm with the daily bias and everything
3:37:44in the last lesson, right? where if
3:37:46price goes up, hits this high and we get
3:37:48a really instantaneous reaction off
3:37:49this, then I'll look for shorts, right?
3:37:51And this is a valid key level even
3:37:53though it's a fiveminute gap. Why?
3:37:55Because we still have a higher time
3:37:57frame sponsorship of this for valid gap
3:37:59being what the hourly gap above it,
3:38:02right? So, this is still valid. Okay? Or
3:38:04I mean, we could also go up here and
3:38:06that's completely fine. We could sweep
3:38:07out the hourly internal high. I'm cool
3:38:09with both and I'm really just looking
3:38:10for whatever we get an initial reaction
3:38:12off of, right? And I'm really expecting
3:38:14us to just react off this and probably
3:38:15just keep this high iss protected,
3:38:17right? Since it traded to an hourly gap.
3:38:19What do we do at open? We end up taking
3:38:20out the sell side, but we still have
3:38:22this, you know, low right here. And, you
3:38:24know, sell side is still resting below.
3:38:25So, I don't really care too much if we
3:38:26take out internal liquidity pools like
3:38:28this. Why? Because this is still the
3:38:30overall objective on the day, right?
3:38:32We're still very very bearish towards
3:38:34that. That still hasn't changed yet.
3:38:35Okay. So, what do we do at open? We end
3:38:37up trading higher. End up hitting this.
3:38:39And then what do we start doing?
3:38:40Displacing lower. Okay. So now I'm going
3:38:42to be looking at this leg here. Okay, so
3:38:44let's mark out this 5minute internal
3:38:46high. We got a very beautiful reaction
3:38:48off of this high. You can see that we
3:38:50swept it and then we had an like just an
3:38:52amazing reaction where we didn't print
3:38:54any candles above it, right? And we just
3:38:56wicked it and started trading lower.
3:38:58Okay, so we're keeping this high as
3:38:59protected, I'm assuming. And we're
3:39:01looking at this leg from this low to
3:39:02this high. And I'm going to mark out the
3:39:04feral gaps on this leg. We have this one
3:39:06minute gap right here, as you can see.
3:39:08Bada bing, bada boom. And now I'm going
3:39:09to check the two-minute time frame. Do
3:39:10we have a 2-minute gap? Yes, we do. We
3:39:12have a two-minute gap. So, we have to
3:39:13wait for that to close instead of the 1
3:39:15minute. Okay. Do we have a three-minute
3:39:16gap? We don't have a three-minute gap.
3:39:17Right? You can see in this leg, there's
3:39:18no 3minut rally gap. Okay. So, since the
3:39:21highest time frame here is this 2-minute
3:39:22gap, I'm going to wait for this
3:39:23two-minute gap to get close through. I'm
3:39:25going to put my stop loss here, and I'm
3:39:26going to put my takerit down here, and
3:39:28I'm going get a sexy trade just like
3:39:31this. I don't know why you can't see my
3:39:33risk-to-reward. I don't know what's
3:39:34going on, but whatever. Okay, we'll take
3:39:36this trade. Here we go. I don't know
3:39:37what's going on. Why is it doing that?
3:39:39Whatever. It's about a 1 to three
3:39:40riskreward, though. We can target this
3:39:41low, right? And I typically like to go
3:39:44break even at the internal low that
3:39:46created this gap. But there really isn't
3:39:48like a great spot here to go break even.
3:39:50I'm not going to lie. Nothing is like
3:39:52too obvious for me to go break even. So,
3:39:55I probably would just hold this and
3:39:56yeah, so wait for the 2-minut to close.
3:39:582 minute gets closed through, enter into
3:40:00short. I immediately enter into shorts.
3:40:02I don't put a limit order. I don't put a
3:40:03limit order here. I just enter
3:40:04immediately when the close is, right?
3:40:06And then boom. You could, if you want
3:40:08to, go break even, let's say, at these
3:40:10equal lows. Let's say at like this 30
3:40:12second low right here, right? This is
3:40:14like a cool low to go break even with.
3:40:16Um, I don't think I went break even in
3:40:17this trade, though. I just let it run
3:40:19and then boom, hits TP like that. And I
3:40:21am not targeting anything lower. Okay.
3:40:24And you know, this does play out, right?
3:40:25My bias plays out and cool. But a lot of
3:40:27the times, guys, we could, you know, go
3:40:29back up and I see this happen almost,
3:40:31you know, so much with AM session, so
3:40:33much with price action in general. We
3:40:34can go up, hit my break even, be in draw
3:40:37down, then go down, then [ __ ] around,
3:40:39then maybe in PM session, we go hit it.
3:40:41Right? This is a really beautiful day of
3:40:42price action. So, we got an amazing move
3:40:44here, but it's not typically what
3:40:45happens, right? So, I will just always
3:40:47aim for the low hanging fruit and that
3:40:49is all you need. 1 to 3 R, one to two
3:40:50RR. Beautiful. That's all I need. Get me
3:40:52in and out of the trade and that's what
3:40:54I'm super confident in. Right? There's
3:40:56the drawn liquidity and that's the
3:40:58trade. So, that's uh one trade and I'll
3:41:00do like two more examples. All right.
3:41:02Now, let's go into another trade that I
3:41:04took. This is a long position. Okay,
3:41:06I'll show you guys an example of the
3:41:08trade I took here. And let's start off
3:41:09with entry criteria. Of course, first
3:41:11things first, we're trading from 9:30 to
3:41:1211, right? Next thing I'm going to be
3:41:14looking at if I have a confident higher
3:41:16time frame draw and liquidity, right? If
3:41:18I'm going to be bullish or bearish. And
3:41:19where are we going to be going if that
3:41:21is the case? What are we doing? We are
3:41:23clearly disrespecting bearish here. And
3:41:25we're clearly delivering higher. Higher
3:41:26time frame trend is bullish. If we just
3:41:28look to the left of us here, we're
3:41:30disrespecting these gaps and we are just
3:41:31trading up. We are trending up. Okay.
3:41:33And what is the reasoning for price to
3:41:35go higher here? Well, there's many
3:41:36reasons. For one, we have buy liquidity
3:41:38resting here. And two, we have buy side
3:41:40liquidity also resting up here. Right?
3:41:42We have I think this is what previous
3:41:44day high. So, we not only have like
3:41:45previous day high here. So, we can mark
3:41:47this out. Okay. We have previous day
3:41:49high. Then we also have if we want to go
3:41:51higher than that, higher targets like
3:41:52this 4hour unmitigated gap. So, we can
3:41:54mark out this 4hour unmitigated gap. So
3:41:56the reasoning for price to go higher is
3:41:58not only to rebalance inefficiencies but
3:42:00is also to take out buy side liquidity.
3:42:03Okay. So previous day stay high and then
3:42:04we can have we can mark out this
3:42:06inefficiency here with this 4hour gap
3:42:07and then of course we want to go higher.
3:42:09We have more buy side liquidity. Right?
3:42:10So a lot of reasons to go higher and the
3:42:12market is clearly trending up. So I want
3:42:14to be on side of that right very very
3:42:16simple. Now if we look on this chart
3:42:18right here I'm going to wait for 930 to
3:42:20open. So this is currently not even
3:42:22close to open. We can look at 9:30 open
3:42:24here. Right? And let's mark out the
3:42:26range. Okay, we have an hourly fali gap
3:42:28that price is currently displacing off
3:42:30of. And this is a pretty similar
3:42:31scenario to like that last trade, but we
3:42:33ended up hitting this hourly fal gap.
3:42:35And what did we start doing after that?
3:42:37Well, let's go to 9:30 open and boom, we
3:42:39end instantly just displaced from that
3:42:41area. And what do we end up doing? We
3:42:43open up a 5minute feroc. So really nice
3:42:46here, right? So we end up getting
3:42:47displacement from this. And now my key
3:42:49level, what I'm going to be looking at
3:42:50for a trade is now I'm going to be
3:42:52looking, you know, for my actual entry
3:42:53criteria, seeing if we have a
3:42:54five-minute gap. We do have a
3:42:55five-minute gap right here. Very, very
3:42:57nice. Okay, so I'm going to wait for
3:42:59price to trade then into this 5minute
3:43:01bullish for rally gap and then take my
3:43:02trade off. Okay, so I'm going to look
3:43:04for here. Bada bing, bada boom. Have buy
3:43:06equity resting right here. Okay, and
3:43:08what do we do? We end up trading. Boom.
3:43:10Hitting that. And I'm going to be
3:43:11patient and I'm going to wait for my
3:43:13inversion. Right. There was also
3:43:15something else that came up with this
3:43:17trade. And the reason I didn't take it
3:43:18yet, a lot of people will be like, why
3:43:20didn't you take there was a 30 secondond
3:43:21here. So, this is just when it starts
3:43:23getting slightly more discretionary with
3:43:26trades, right? And you'll slowly start
3:43:27learning, you know, what makes your win
3:43:28rate higher and lower. This is one of
3:43:30the things that I do that like increases
3:43:32my win rate is I'll just always be
3:43:33looking at ES to see what it's doing.
3:43:35So, you can see ES is just pretty
3:43:36uncorrelated at the moment where it's
3:43:38heavily displacing towards this 930
3:43:40swing low here. And this swing low is
3:43:42just a 930 low is always like a great
3:43:44draw on liquidity to have, right? So you
3:43:46want to be like paying attention to lows
3:43:47and highs in the market, but especially
3:43:48like a 9:30 low and especially this is
3:43:50what a low inside of a 5minute gap. So
3:43:53I'm waiting for 9:30 that for that 9:30
3:43:55low to hit. Once that 9:30 low gets hit
3:43:57cuz we're obviously displacing towards
3:43:59there. Then I know price can start
3:44:01moving up, right? Because not only we
3:44:02hit that low, but what we also have now
3:44:04a bullish SMT in play. We can mark out
3:44:06this 9:30 low and we have a bullish SMT.
3:44:08And then what did we do? We swept out
3:44:10the intermediate low resting within this
3:44:125minute gap. So you guys are seeing now
3:44:14how all these concepts that I'm been
3:44:16teaching are all coming together to form
3:44:18a high probability trade. And then what
3:44:20do we have? We have a one minute for gap
3:44:22right here. We also have relative equal
3:44:24highs. So you know on the lower time
3:44:26frame it's even confirming that bias
3:44:28with relative equal highs. We are
3:44:29creating high resistance liquidity here
3:44:30and we have low resistance liquidity up
3:44:32here. And yeah again this is like all
3:44:34the concepts I'm teaching you guys. So
3:44:35hopefully you guys are understanding
3:44:36this. But yeah, anyways we end up
3:44:38getting that displacement and this is of
3:44:39course the highest time frame inversion.
3:44:40Do we have a 2-minute gap? No. Do we
3:44:42have a 3minut? No, 4 minute, 5 minute.
3:44:44No, high side from here is the one
3:44:44minute. So, I'm going to wait for the
3:44:45one minute. Once I get the close, bada
3:44:47bing, bada boom, stop loss can go here
3:44:48or at the swing low. And then I can look
3:44:50to just simply target about a 1:1
3:44:52riskreward. And look at that, right? And
3:44:54for this scenario, right, I'm looking to
3:44:56just target this 4hour gap. Why? Because
3:44:58I know that price could have some sort
3:45:00of reaction to this. I'm not going to
3:45:02look to target this buy setup here. I'm
3:45:04not going to look to target all this low
3:45:05resistance liquidity up here. I'm not
3:45:06going to have a target up here. Why?
3:45:08Because, you know, first off, my entry
3:45:09isn't the best. I'm not getting entered
3:45:10down here where I can hold up there. You
3:45:12know, I know for a fact that we will hit
3:45:14this. Not for a fact, but like I know
3:45:16that this is again like the highest
3:45:17probable chance. I'm not too certain
3:45:19that price is going to rip through this
3:45:21and then go to this, you know, and I
3:45:22know that we could have some sort of
3:45:23reaction that and it's more than a one
3:45:25one. So, I'll take my profits at a one,
3:45:27right? And that's it. Okay. So, that's
3:45:29how I took this trade. That's how I took
3:45:30profits. That's how I tpd. And very,
3:45:32very simple. That is it. And then what
3:45:34do we do? We actually do end up going
3:45:35back to break even and stop loss. So, I
3:45:37would have gotten cooked on that, right?
3:45:38Which is why you can use price as a
3:45:41magnet. You can use these draws on
3:45:42liquidity and your overall bias as a
3:45:45magnet because then what does price do
3:45:46later on? Exactly what I was explaining,
3:45:48right? We can go all the way back down,
3:45:50end up stopping you out, end up going
3:45:51lower, going higher, and I don't really
3:45:53care cuz at the end of the day, I'm just
3:45:55getting my piece of the pie. That's what
3:45:56you have to understand as a trader.
3:45:58Going back to this, what do we end up
3:45:59doing? Right? We hit this buy side and
3:46:01then we go lower, right? And price ends
3:46:03up [ __ ] around for a little bit. AM
3:46:05session doesn't really do much. Then PM
3:46:06session starts ripping, right? And then
3:46:08overnight session starts ripping. So, as
3:46:10I was saying, price ends up, you know,
3:46:12going back lower, taking out this low,
3:46:14and then it's like 1:00 p.m., and then
3:46:15it's 2 p.m. and 3 p.m., and then price
3:46:17does end up eventually, you know, going
3:46:19higher the next day and the day after
3:46:20that, right? And we do end up trading
3:46:22higher. And my bias was overall right.
3:46:24And you can see that we keep trading up
3:46:25towards these highs and taking out these
3:46:27draws and liquidity. My bias was right,
3:46:29but price action can also just be wiky
3:46:31and [ __ ] right? Like, this is not what
3:46:32I want to be in. I obviously don't want
3:46:33to take a trade and be in it for this
3:46:35long for days. That's what my theory is
3:46:37for taking trades for 1:1 ones and stuff
3:46:39like that and taking that lowhanging
3:46:41fruit because it's really going to be
3:46:43the best for your psychology and it's
3:46:45just going to give you the highest
3:46:46probability win rate and it's just going
3:46:48to give you the highest win rate really.
3:46:49And yeah, let's get into one more trade
3:46:50and then we'll wrap this video up. All
3:46:52right, now let's take a look at this
3:46:53final example here from this trade I
3:46:55took. You can clearly see that we are
3:46:57heavily displacing lower, right? And we
3:46:59are clearly very clearly disrespecting
3:47:02bullish. Yeah, disrespecting bullish and
3:47:03respecting bearish, right? You can see
3:47:05here on the hourly time frame we have
3:47:07this sweep of this hourly buyside
3:47:09liquidity. So 15-minute intermediate
3:47:11high. Nope, this is a 1 hour
3:47:13intermediate high, right? 1 hour
3:47:14intermediate high. And we are clearly
3:47:16delivering from this, right? Respecting
3:47:18bearish, respecting this gap right here.
3:47:20And we start trending lower, right? You
3:47:21can see if we go on the 15-minut time
3:47:23frame, we have 9:30 open and it just
3:47:25absolutely dumps lower. Now, when I'm
3:47:27looking to trade here is I'm looking to
3:47:29take shorts towards what the obvious
3:47:31draws. So, what do we have lower on the
3:47:3215-minut time frame on the hourly?
3:47:34Right? What what am I looking at here?
3:47:36Well, we have this very obvious
3:47:3715-minute for gap. And this is like my
3:47:39lowhanging fruit. Like, I'm looking at
3:47:40the closest possible area for price to
3:47:43potentially bounce off of when I'm
3:47:44looking to take my trade. Right? Because
3:47:46obviously here there's no opportunity
3:47:47for shorts. Right? I would need to see
3:47:49at this point price to trade back into
3:47:51like a 5m minute or 15-minute gap, get
3:47:52my inversion, and then take my trade.
3:47:53Right? That's what I'm looking for to
3:47:54take my trade. And we see we have a
3:47:5550-minute gap right here. And then we
3:47:57also have some sellside liquidity
3:47:58resting right around here. Right? So,
3:48:01what do I want to see price do again?
3:48:02Rebalance this range, trade into a
3:48:0415-minute or 5minute rally gap. What do
3:48:06we have right here? We have a 15-minute
3:48:08bearish rally gap. So, we can mark that
3:48:09out with a 50-minute gap right there.
3:48:11Okay, so price ends up trading up, hits
3:48:13that, and we start getting displacement
3:48:14back lower. I'm now going to look at
3:48:16this range from this low to this high,
3:48:18and I'm going to look for the highest
3:48:19time frame inversion. Right, I'm
3:48:21bearish, so I want shorts. Okay, so I'm
3:48:23going to look at the one minute. Is
3:48:24there a 1 minute? Yes, it's over here.
3:48:25It's not the cleanest, though. There's
3:48:27two 2 minutes, right? As you can see,
3:48:28there's a 2-minut up here. And then
3:48:30there's also a 2-minut here. I want
3:48:31there to be a leg where it's a singular
3:48:33gap. And then we have a 3minut. So the
3:48:353minut it's really small but it is
3:48:36there. And this is the highest time
3:48:38frame inversion this leg. Is there a
3:48:394-minute? So the 3 minute is the highest
3:48:40time from here. It is really small but
3:48:41again for value gap size doesn't matter.
3:48:43But yeah and then you can put your stop
3:48:45loss at like the swing high. You can put
3:48:47your TP at a 1 one. Okay. And just look
3:48:49at the target like this. You can do like
3:48:50this and take the trade like this. And
3:48:52targets are mainly going to be the gap.
3:48:54I'll probably expect a little bit of
3:48:55reaction off that. And you wait. And you
3:48:57can go break even once price hits the
3:48:59internal low. So you can go break even
3:49:01here or if you have good risk-to-reward,
3:49:02you can also just take your profits
3:49:04here. But I always need that minimum of
3:49:051 one and then price goes down and bam,
3:49:07hits that one 1:1, hits that takeprofit,
3:49:09hits that 50 gap and actually would have
3:49:11got a break even if I didn't take profit
3:49:12the one to one, which is why I always
3:49:13say take profit your 1:1 and full close
3:49:15and that's it. And that's pretty much my
3:49:17model. There's nothing more to it. And
3:49:19yeah guys, that's going to wrap up this
3:49:21lesson. Lesson number 10 on my model on
3:49:24the PB Blake model. and it's we put all
3:49:26the freaking concepts together. I'm
3:49:28really happy with how this is turning
3:49:29out. I'm going to do one final section
3:49:30next up. You guys will see I'm going to
3:49:32give you guys a whole entire plan on how
3:49:34to actually start making money with
3:49:37evaluations with prop firm trading and
3:49:39just a whole entire game plan for your
3:49:41next couple of months trading and then
3:49:44we'll end the free course with that.
3:49:45What is going welcome to the final
3:49:47lesson in this course. For this lesson,
3:49:49I'm going to give you guys the full
3:49:50entire trading plan that I would use if
3:49:52I was a complete beginner in the stock
3:49:54market. Okay, I'm going to talk about
3:49:56paper trading, how long you should be
3:49:57doing that for. I'm going to talk about,
3:49:58you know, your risk management, how many
3:50:00trades you should be taking a day, your
3:50:02morning routine, what should that even
3:50:03look like, when I should move to an
3:50:05evaluation, when should I move to a
3:50:06funded account, when should I be scaling
3:50:08all my accounts? I'm going to be
3:50:09answering all of those questions in this
3:50:11final lesson. And this is sad, man. This
3:50:13is coming to an end, but I'm really
3:50:15hyped for this, guys. So, without
3:50:16further ado, let's get into it. All
3:50:18right. So, I'm going to talk about the
3:50:20full entire trading plan that you guys
3:50:22will need to follow as a complete
3:50:24beginner trader, right? Let's say you
3:50:25just watched this whole entire course.
3:50:27You wrote down all the notes. You did
3:50:28all the homework that I gave you every
3:50:30single day and you understand the
3:50:31concepts. You understand the model, but
3:50:33you want to start applying it so you can
3:50:34understand it even more because at the
3:50:36end of the day, guys, like you need to
3:50:37be putting in the work, right? Just
3:50:39watching this video on your own won't
3:50:41make you a profitable trader, right?
3:50:43It's the same way where if I were to go
3:50:45surfing for example and let's say I
3:50:47watch a video on surfing and I'm a
3:50:49complete beginner surfer. You guys think
3:50:51if I go out into the water and I try
3:50:53surfing just by watching one YouTube
3:50:55video that I'm going to be a freaking
3:50:56pro surfer. No, right? I have to
3:50:57actually go out there, put in the hours,
3:50:59put in the work every single day. So,
3:51:00it's the same thing with trading, right?
3:51:02You can't just watch a video and that's
3:51:04it. This is the guidelines and I'm going
3:51:05to tell you everything that I know and
3:51:07everything that you would need to know
3:51:08to become a profitable trader. Now, it's
3:51:10time for you to actually just put in the
3:51:12freaking work and do it. Okay? So,
3:51:14follow this trading plan. And this is
3:51:16exactly what I would do. I've been
3:51:17trading for four years now. I've made so
3:51:19many mistakes in the beginning. I've
3:51:21lost a lot of money. So, I'm going to
3:51:22tell you how to avoid all those mistakes
3:51:24that I've made. And I've also taught a
3:51:26lot of people that have made such
3:51:27similar mistakes to me. So, again, this
3:51:29all going to be just filtered sauce
3:51:31right here. Okay. So, first things
3:51:32first, paper trade on Trading View until
3:51:34you can quote unquote pass an account,
3:51:35pass an evaluation. Okay. Why are we
3:51:37paper trading, Blake? I want to start
3:51:39making real money in the markets. Well,
3:51:41Timmy, I'll tell you, okay, I personally
3:51:44went through this problem where I lost
3:51:46so much freaking money at the start.
3:51:47Thousands and thousands and thousands of
3:51:49dollars without even knowing my own
3:51:51strategy, without even really
3:51:53understanding it, without even
3:51:54practicing it in the live markets. You
3:51:56guys need to pay paper trade at the
3:51:58start. If not, I'm telling you, you will
3:52:00be cooked. That's it. It's as simple as
3:52:01that. You will be cooked. You will lose
3:52:02thousands of dollars. I don't care if
3:52:04you just watch this and you think you
3:52:05understand it all. Trading the live
3:52:06markets is such a different game. Okay,
3:52:08so you need to be paper trading I would
3:52:10say for minimum 3 months and I give
3:52:12yourself this rule until you can pass an
3:52:14account. So what does that mean? Right,
3:52:15with prop firms, we can have a 50k
3:52:17valuation, right? This is an example 50k
3:52:19valuation where you have a $2,000 max
3:52:21loss and a $3,000 target. If you guys
3:52:23don't know what prop firms are,
3:52:24essentially there are these companies
3:52:26that give you leverage to trade with. So
3:52:28for example, they give you a $50,000
3:52:31account, quote unquote $50,000, and you
3:52:33can lose $2,000 on the account, but you
3:52:35have to make $3,000 on the account. So,
3:52:37sorry. You can't lose $2,000 in the
3:52:38account and you have to make $3,000. And
3:52:40that's your evaluation. It's like a
3:52:42challenge phase, right? Once you pass
3:52:43that challenge phase, then you move on
3:52:45to your live account, which still isn't
3:52:47live. This is all really like simulated
3:52:49funds, but the money you now are making,
3:52:51you can pay yourself out after you pass
3:52:53this initial challenge phase. And
3:52:55there's a bunch of different rules that
3:52:56you have to follow like consistency
3:52:57rules, you know, minimum winning days.
3:53:00Most of these firms need like at minimum
3:53:01five winning days before you can request
3:53:03a payout. All the firms have different
3:53:05rules and everything. And I'm going to
3:53:06talk about like the best firms and the
3:53:07ones that I personally use and that the
3:53:09ones that actually pay out and are
3:53:10reputable. But yeah, that's essentially
3:53:12what a prop firm is. I know it sounds
3:53:14sketchy, but it pays out and you can
3:53:16make a lot of [ __ ] money on this.
3:53:17Okay. And from here, right? So, until
3:53:19you can pass the account. So, 50K
3:53:21evaluation. Again, try to not lose
3:53:22$2,000 and try to make $3,000. Again, I
3:53:24already showed you guys how to open up a
3:53:26paper trading account. You go right
3:53:27here, right? You open up create account
3:53:29and we're going to name this what what
3:53:30are we naming this? I don't know. Let's
3:53:32name it something that you guys can
3:53:33comment down below. I don't know if I've
3:53:35done that yet, but let's do it. I will
3:53:36be profitable. Boom. I will be
3:53:38profitable. And you can create your
3:53:39account, right? This is a $100,000
3:53:40account. I would suggest $50,000 account
3:53:42because that should be the account size
3:53:44that you guys are aiming for. Especially
3:53:45as a beginner, you want to just get the
3:53:47cheapest accounts, right? Cheapest
3:53:48accounts. And then eventually, you can
3:53:49start reinvesting into firms and getting
3:53:51bigger accounts and adding more
3:53:52allocation. But for now, as a beginner,
3:53:54risk, get a $50,000 account for with
3:53:56your paper trading. Okay? I mean, I'm
3:53:58going to give you guys this rule of
3:53:59risking.5% a trade. I think this is
3:54:01great for a beginners. The reason it is
3:54:04such a low percentage right now guys and
3:54:06eventually you know when you start
3:54:08becoming more advanced as a trader and
3:54:10you start making more money of course
3:54:11you can start risking more like 75% 1%.
3:54:15I do recommend that but as a beginner
3:54:16the main problem I see so many beginner
3:54:19traders face and the problem that I
3:54:20faced myself was I would just risk too
3:54:23much. Okay. And this would always be
3:54:25messing with your psychology because
3:54:26then you're thinking to yourself, "Oh my
3:54:27god, like let's say you're risking 1% on
3:54:29a 100K account and you can lose $3,000
3:54:33max loss, right? And you're risking
3:54:34$1,000 a trade." After your first loss,
3:54:36you're like, "Oh my god, I can only risk
3:54:37I can only take two more trades until I
3:54:39blow the account." And then the next
3:54:40trade you're taking, it's like, "Oh my
3:54:42god, I hope this isn't a loss." And
3:54:43what's always in the back of your mind
3:54:45is like, "I don't want this trade to be
3:54:46a loss because then my account's going
3:54:48to get blown." Right? So, I don't want
3:54:50you guys to be thinking like that. With
3:54:51$250 with 0.5% of trade, you'd have to
3:54:54lose eight trades in a row for you to
3:54:55blow your account, which is highly
3:54:57unlikely that's going to happen. If it
3:54:59does happen, then, you know, it's just
3:55:00back to the drawing board and back to
3:55:02the learning about the concepts. But
3:55:03yeah, just so you guys can have like a
3:55:05really good psychology, you can
3:55:07eventually, you know, start maybe
3:55:09risking slightly more, maybe the point
3:55:11where you have like five trades as a
3:55:13buffer. I think that would be great.
3:55:14Like five trades as a buffer. And it's
3:55:17just really about your psychology, guys.
3:55:18At the end of the day, that's it. Like
3:55:19if you are okay with having you know
3:55:22let's say five trades as a buffer then
3:55:24have that. This is giving you eight
3:55:25trades as a buffer. So you're having
3:55:26eight trades before you blow the
3:55:28account. I think that's great for your
3:55:29psychology and headsp space. I
3:55:31personally like me as a trader now I
3:55:33have six trades before I blow my account
3:55:35usually. Right? So that is a lot and
3:55:37doesn't happen often. Right? So I'm able
3:55:39to trade with like a super super clear
3:55:42mind. Right? So really great. Okay. One
3:55:44trade a day also. Okay. I do not want
3:55:46you guys taking more than one trade a
3:55:47day. If you take a loss, be done for the
3:55:49day. If you take a win, be done for the
3:55:51day. You can keep looking at the charts,
3:55:52right? Let's say you take a loss and
3:55:53you're like, "Oh my god, there's another
3:55:54side of presenting yourself." Keep
3:55:55looking at the charts. Maybe forward
3:55:57test it, but take one trade a day. Stick
3:55:59to that. Okay, not only is this going to
3:56:00be good for your psychology, but it's
3:56:02just overall like going to be good for
3:56:04risk management in general. Okay, if you
3:56:06take a win, right, let's think about
3:56:08this logically. The market moves how?
3:56:09Right? I told you guys accumulation,
3:56:11manipulation, and distribution. That's
3:56:12how the market moves. So after the
3:56:14market has distributed and let's say you
3:56:16take a win on this distribution what is
3:56:18the market going to do after
3:56:19distribution it accumulates right so you
3:56:21do not want to be trading after this
3:56:23when the market is accumulating and
3:56:24after the draw on liquidity has been
3:56:26taken right and your trade of the day
3:56:28has been done and then the same thing if
3:56:29you've lost a trade there's really
3:56:31nothing good that comes after trading
3:56:33after you've lost a trade you lose a
3:56:34trade okay you can try to trade again
3:56:36let's say you lose again your psychology
3:56:38is going to be in the [ __ ] you're
3:56:39going to be down a lot of [ __ ] money
3:56:40you're going to want to keep trading so
3:56:41you can go back to just break even and
3:56:43you're always going to give yourself
3:56:44these excuses in your head on why you
3:56:46need to keep trading and it's just never
3:56:48going to be good. I'm serious. Nothing
3:56:49really comes good after taking one trade
3:56:51after a loss, okay? And then you're back
3:56:53to break even or maybe you're even a
3:56:54little bit green on the account now. But
3:56:56like, no, just wait. There will always
3:56:58be another trading day. This is what I
3:56:59want to emphasize to you guys. There
3:57:00will always be another day, right? If
3:57:02you miss a setup one day, who cares? If
3:57:04you take a loss, who cares? At the end
3:57:06of the day, you guys are beginners.
3:57:07You're putting in the work. You're doing
3:57:09this [ __ ] every single day so you can
3:57:10learn from your mistakes. Okay? Learning
3:57:12from your mistakes is how you become a
3:57:14better trader. Taking losses is how you
3:57:16become a better trader because then you
3:57:18journal it and then you move on. Okay?
3:57:19So, with all this being said, I'm going
3:57:21to give you guys like not only this full
3:57:22trading plan. I mean, this is like the
3:57:24first thing I want you guys to be doing.
3:57:25But after you do this, right, let's go
3:57:27to step two. So, let's say you pass the
3:57:29account and you've been paper trading
3:57:30for 3 months. I then want you guys to
3:57:32buy your first evaluation. Okay? You buy
3:57:34your first evaluation account. It should
3:57:36be a 50k account. Okay? So a 50k account
3:57:38and you could buy an account with three
3:57:41different prop firms I would say. Okay.
3:57:42So there's Alpha Futures which is what I
3:57:44trade with. I also use Tradeify and then
3:57:46I also use Apex Trader Funding. As a
3:57:48complete beginner there now there's pros
3:57:50and cons of every single one right.
3:57:51Alpha Futures and Tradeify are both
3:57:53really beginner friendly. They have you
3:57:55know consistency rules. Tradeify does.
3:57:57Alpha Futures has a little bit better
3:57:59rules. I would say a little bit cheaper.
3:58:01Alpha Futures you can get max up to
3:58:03three accounts. Tradeify you can get max
3:58:04up to five accounts. Right. So, it's
3:58:06better for that reason. Apex, you can
3:58:08get up to 20 accounts, which is insane.
3:58:10And they're super super cheap. You can
3:58:12get accounts for literally like $10. But
3:58:14what's the catch? There's a lot of
3:58:16intraday trailing draw down rules.
3:58:18There's a lot of hidden rules that
3:58:19honestly I don't really recommend you
3:58:21guys even paying attention to. Now, I
3:58:23would suggest if you guys are just
3:58:24looking to get your first account, I'd
3:58:26recommend Al Futures or Tradeify. Like
3:58:28Apex also is really, really good. Just
3:58:30more down the line and once we've passed
3:58:32that beginner phase, I would recommend
3:58:34right. So, get a 50K account. There's
3:58:36all different plans, zero, standard. You
3:58:37can't go wrong with any of them. They
3:58:39all just have different rules. So, get
3:58:40whatever you like, honestly. From there,
3:58:42okay, 50k account, alpha futures,
3:58:44tradeify, Apex, and you try to pass your
3:58:46account. That's really it. Pass your
3:58:47account and trade it the same exact way
3:58:49you traded your other account. How did
3:58:51you pass your account on Trading View,
3:58:52use those same rules and do the same
3:58:54exact thing. Now, it's just an account
3:58:56and now it's going to cost you like a
3:58:57hundred bucks, right? So, now there's
3:58:59actual money on the line. So, now your
3:59:00psychology is going to be slightly
3:59:02slightly worse, but it's okay, right?
3:59:04Not not slightly worse. Hopefully not,
3:59:06but it's definitely going to test you
3:59:07more, right? Your trading with actual
3:59:09money on the line is definitely going to
3:59:10test you more. Okay, so you pass your
3:59:11account. Boom. From there, what's the
3:59:13next step of the plan? You start adding
3:59:14more accounts. All right, so you pass
3:59:16your account and now what is step three?
3:59:18Step three is going to be you trade your
3:59:20funded account. You now have access to a
3:59:22funded account. So any money you make on
3:59:24the now live account, right, you can
3:59:26actually start paying yourself out. So
3:59:27it's not a challenge phase anymore,
3:59:28right? So after you've passed your I
3:59:30should write evaluation here,
3:59:32evaluation. And then you trade your
3:59:33funded account. Okay, once you trade
3:59:35your funded account, you can get your
3:59:36payout. Get your first payout.
3:59:38Everyone's going to ask me, "What should
3:59:39be the buffer on this account? How much
3:59:40should I pay myself out?" Whatever money
3:59:42you make on the account, just pay
3:59:43yourself out. That's it. Pay yourself
3:59:45out. Even if it's a hundred freaking
3:59:46dollars, bro. Pay yourself out. Even if
3:59:48it covers the evaluation fee, so you're
3:59:50break even on the account. Pay yourself
3:59:52out. It's just going to be a good
3:59:53feeling to get that first payout, to see
3:59:55that money hit the bank. It's a really
3:59:56great feeling just to get that first
3:59:58payout. Again, like you're going to see
4:00:00that trading is real and all that hard
4:00:02work you've been putting in is going to
4:00:03pay off. So any money again, get your
4:00:05payout, pay yourself out. After that,
4:00:07after you get your first payout, what
4:00:09should you do? Reinvest back into prop
4:00:12firms. So now, let's say you have one
4:00:15account without futures. Start adding
4:00:16more. Get another account. Get two
4:00:18accounts. Get three accounts. Let's say
4:00:20you want to start, you've maxed out
4:00:22allocation without futures. Let's say
4:00:23you already have three accounts with
4:00:24them. Boom. Start adding accounts with
4:00:26Tradeify. And keep adding. This doesn't
4:00:28mean immediately guys though all after
4:00:30getting one payout you buy 10 accounts
4:00:32with tradeify and alpha futures and
4:00:34apex. No, you add one account. Okay, so
4:00:37reinvest back in profms then you have
4:00:39two accounts right? Get another payout
4:00:40then you have three accounts get another
4:00:42payout then you add four accounts. Okay,
4:00:44slowly start adding your allocation. Do
4:00:47not again please do not just go into
4:00:49this deep rabbit hole of finding out all
4:00:51these other prop firms and adding
4:00:53allocation from all of them because you
4:00:54will blow a [ __ ] ton of money. I'm
4:00:56telling you, focus on really like maxing
4:00:58your allocation with one firm like Alpha
4:01:00Futures or maxing out your allocation
4:01:02with Tradeify or Apex, whatever, and
4:01:04just focusing on really one prop firm at
4:01:06the start and dialing that in, bro.
4:01:08Because you can easily start making five
4:01:09figures a month very freaking easily
4:01:11with these prop firms. It's very easy to
4:01:13be making five figures a month with
4:01:14these prop firms if you're max
4:01:15allocated. Even if you have three
4:01:17accounts without futures, easily you can
4:01:18be making five figures a month, right?
4:01:20So, definitely start reinvesting back
4:01:21into firms. Don't just get your first
4:01:23payout and spend it all in [ __ ]
4:01:24Chrome Hearts, okay? Please don't do
4:01:26that. I made that mistake. That was
4:01:27[ __ ] Now, this is the full entire
4:01:28trading plan. I also want to talk a
4:01:30little bit about what you guys should be
4:01:32doing in your everyday life. Okay? What
4:01:34should be your routine? What is the
4:01:36profitable trader routine? So,
4:01:38profitable trader routine. What should
4:01:41be you be doing every single day as an
4:01:43unprofitable trader to turn profitable?
4:01:45Okay. Step number one is your morning,
4:01:47right? You wake up, you do what you need
4:01:49to do. Morning routine. Bada bing, bada
4:01:51boom. You wake up about 8:00 a.m. I
4:01:53would say this is my morning routine
4:01:54that I'll give to you guys. I wake up at
4:01:558:00 a.m. I go outside. I journal. Just
4:01:58journal what I need to be doing in my
4:02:00day every single day. I have, you know,
4:02:01a lot of things I need to be doing. And
4:02:03I'm not the best at remembering them.
4:02:04So, I write it down. And that helps me
4:02:06remember what I need to do. Okay? So, I
4:02:08journal. I'm in the sunlight. So, get
4:02:10some sunlight, maybe some electrolytes
4:02:12in your system, right? Take a shower and
4:02:14wash my face, brush my teeth, and that's
4:02:16really it. I don't eat breakfast before.
4:02:18I don't even drink coffee to be honest.
4:02:19You can do that if you like to do that.
4:02:21Coffee for me, I'm already really
4:02:22freaking ADHD and hyper. So like coffee
4:02:25just makes my heartbeat like beat out of
4:02:27my chest and I don't have the best
4:02:29experience with coffee. I'm a little
4:02:30[ __ ] All right, so I only drink coffee
4:02:32like I don't know when I'm super super
4:02:34tired or something. Anyways, I don't
4:02:35know if you're happying about me. That's
4:02:36your morning routine, right? Not only
4:02:37this, you now do what? Go on the charts
4:02:41at minimum. So by 9:00 a.m. Okay, you
4:02:44should be on the charts by 9:00 a.m. So
4:02:46you're on the charts by 9:00 a.m. What
4:02:48are you looking for, Blake? Well, you're
4:02:49looking for exactly what I've told you
4:02:50to be looking for in the daily bias
4:02:52video, right? In the daily bias lesson
4:02:54that I gave to you guys. Scroll back if
4:02:55you need to rewatch that, right? But
4:02:57give yourself these if then statements
4:02:58and be writing out in your journal.
4:03:00Okay? So, get your journal out. You can
4:03:02journal on notion. There's a lot of
4:03:03journal templates on notion and write
4:03:05out your daily game plan. Write out if
4:03:07then statements. If I do this, then I
4:03:09will do this. If price goes here, then I
4:03:11will do this. Right? There's if then
4:03:13statements. So, by 9:00 am, you should
4:03:15be Did I just write by 9:00 am? You
4:03:16should be on the charts by 9:00 a.m.
4:03:17Okay, let's redo that. You should be on
4:03:19the charts by 9:00 a.m. or just be on
4:03:20the charts by 9:00 a.m. minimum also,
4:03:23guys. Right, what is step number two
4:03:25after this or step number three? Right,
4:03:26you wake up, you do your things, you're
4:03:28on the charts by 9:00 a.m. Now, what you
4:03:30trade from 9:30 a.m. to 11:00 a.m.
4:03:33Eastern time. This is the morning
4:03:34routine of someone that trades New York
4:03:35AM session, right? You can flip this
4:03:37around for whoever if you're trading,
4:03:39you know, lunch hour or PM session or
4:03:41whatever you can trade. But, you know,
4:03:42if you're trading New York AM session,
4:03:44that's what I trade. This is what you
4:03:46should be doing. Trade from 9:30 a.m.
4:03:47Eastern to 11:00 a.m. Eastern time.
4:03:49Okay? You're going to use those hours
4:03:50out of your day. From there, after you
4:03:52trade, win or loss, you journal your
4:03:55trade. What should I be journaling,
4:03:56though, Blake? Your journal should look
4:03:58something like this. I'm going to
4:03:58actually show you guys an example of
4:04:00what my journal looks like. I'll show
4:04:02you guys a journal entry so you
4:04:03understand what you should be
4:04:04journaling. Let me show you guys really
4:04:06quick. All right. So, I personally use
4:04:07Tradzella to journal my trades. You
4:04:09don't have to use Trade Zela. You can
4:04:10use Notion, right? That's completely
4:04:12free. I used to trade Zela because it's
4:04:14it's really nice. You know, I can do
4:04:15things like this. Let me show you guys.
4:04:17So, this is a trade I took. This is a
4:04:18short, right? And you can see I took a
4:04:21short here off this inversion for valley
4:04:23gap. And I wrote down everything for my
4:04:24RR. It was a 1 to2 RR. My drawn
4:04:26liquidity was the swing low. My key
4:04:28level was a 5minute intermediate high.
4:04:30As you can see right here, we had a
4:04:31fiveminut intermediate high and it was a
4:04:332-minut 5minute continuation. That was
4:04:35like the model time was 9:40 to 9:45.
4:04:38It's really good that you write down
4:04:39what times your trade's at because a lot
4:04:41of you guys and the reason you're
4:04:42journaling guys is to get data, right?
4:04:44To get data and to understand your
4:04:45losses, to understand your wins. What
4:04:48makes up a winning trade? What makes up
4:04:49a losing trade? I'm always getting the
4:04:51question of like Blake, how do you know
4:04:52when to not trade when we're in
4:04:54accumulation? Or how do you know when to
4:04:56not trade during chop? Or what does chop
4:04:58even look like? Look at your journal,
4:04:59right? You should be journaling so much
4:05:01to the point where you have so much data
4:05:03on this, right? And this is how you
4:05:05build discretion in your trading. And
4:05:07then from discretion, what can you start
4:05:09doing? You can start analyzing the
4:05:11charts and you can start seeing setups
4:05:13and you're like, "Holy [ __ ] this is
4:05:14really, really A+. I know this is super
4:05:16A+. I've journaled this trade so many
4:05:18times." And then you can start risking a
4:05:20little bit more and a little bit more on
4:05:21trades like that. And you can start, you
4:05:23know, fulling your evals on trades like
4:05:25that. And that's personally what I do
4:05:26once you start getting to, you know, the
4:05:28more advanced side of trading. And
4:05:30that's when it gets really fun, right?
4:05:31But the only way to build discretion is
4:05:33through journaling. And even as a
4:05:34profitable trader, I still journal every
4:05:36single freaking day. That does not
4:05:38change. Okay? So again, it's just to get
4:05:40data to understand your model more, to
4:05:42understand why certain trades fail, why
4:05:45certain trades win, and how to avoid
4:05:47them for future. Right? For example, we
4:05:49had a trade today, and I'll just show
4:05:52you this really quick. There was a long
4:05:53in the market today, right? And it was a
4:05:562-minute inversion for ralli gap that I
4:05:58saw so many people take in the markets,
4:06:00right? So many people took this trade
4:06:01and I personally didn't take it. and I
4:06:03waited for the re-sweet and then I took
4:06:05this trade right here and it ended up
4:06:06playing out beautifully. Right? Now,
4:06:08what was the difference between this
4:06:09trade and this trade? Right? They both
4:06:10look good. They're both inversion for
4:06:12gap. They're both delivering off
4:06:13something. Right? But what is the
4:06:14difference? Well, from my journaling and
4:06:17from all the data I've collected, I've
4:06:19noticed that it is you have a much lower
4:06:21win rate if you start longing with equal
4:06:24lows right at your stop loss.
4:06:25Specifically, higher time frame equal
4:06:27lows. So on like the 15-minute on the
4:06:285minute and this is why I have this
4:06:30indicator equal highs and equal lows
4:06:32always on and what do we have here
4:06:3415-minute equal lows right and what is
4:06:37right at your stop loss 15-minute equal
4:06:39lows so I will never long when I we have
4:06:4215-minute equal lows right below us so
4:06:44what did I do I faded this trade I
4:06:47waited for those equal lows to get swept
4:06:48and then I took this long right after
4:06:50right and it played out much nicer and
4:06:52we got you know a much better move
4:06:54initially and then the market started
4:06:55being choppy and [ __ ] wasn't the best
4:06:57air price action, but this trade did end
4:06:59up playing out right now. What I'm
4:07:01trying to get at here is how important
4:07:03journaling is. Okay? Journaling will
4:07:05show you your wins. It will show your
4:07:07your losses and you'll start to
4:07:08understand your model more. Maybe you
4:07:10have a lot of losses at around 10:45.
4:07:13Don't trade 10:45. Maybe you have a lot
4:07:15of losses when you trade that 9:30 open.
4:07:17Maybe wait 15 minutes after. Right? So,
4:07:19it's just to simply gain, you know, data
4:07:21collection and how to increase your win
4:07:24rate. The only way to increase your win
4:07:26rate is by doing more journaling. Okay?
4:07:28So, I write down the open, high, low,
4:07:30close, whether or not it was a 9:30.
4:07:31This was a 9:30 open, high, low, close.
4:07:33You can see 9:30 opened. We traded above
4:07:35opening price, then we started trading
4:07:36lower. And I'll give this an A rating.
4:07:38All the confluences for this trade.
4:07:39Delivery off an hourly gap. Lower time
4:07:41frame, 500 meter sweep, immediate
4:07:43delivery for the two-minute. Really good
4:07:44displacement, right? Obvious market
4:07:46maker sell model on the higher time
4:07:47frame towards previous day low. Right?
4:07:49Obvious higher time frame sell. What
4:07:51else? Relative equal lows at previous
4:07:53day low. Extremely clear. Although this
4:07:54trade was still a the reason I targeted
4:07:56the high resistant low which was
4:07:57technically like a low and we we can go
4:08:00back to this was like a low that swept
4:08:01out another low. The reason I still
4:08:03targeted this was because we were in a
4:08:05higher time from sell model. So these
4:08:06lows are still going to get hit blah
4:08:08blah blah and just a bunch of stuff
4:08:09right to get myself a bunch of notes. I
4:08:11said it could have been mechanically A+
4:08:13if there was a better lower time frame
4:08:14liquidity target. So let's say there was
4:08:16like relative equal lows with this low.
4:08:17I would give this more A+. But since I
4:08:19was targeting like a low that swept this
4:08:20again, a little bit little bit less
4:08:22rated, but it was still a really really
4:08:23good freaking setup. Okay, so I still
4:08:25gave it an A-rated setup and it played
4:08:27out beautifully. And um yeah, this is a
4:08:29example of one of my journals, okay? And
4:08:31I journal wins and losses. I want you
4:08:33guys to know that. Okay, so you should
4:08:34be journaling after your trades, right?
4:08:36So that should take no longer than like
4:08:3815 minutes, right? It's not the most fun
4:08:40thing to do in the world, right? But
4:08:42it's something that you have to do in
4:08:43order to become a profitable trader.
4:08:45After that, right, I would say maybe
4:08:47watch a couple YouTube videos, right? If
4:08:48you have the time, maybe you have to go
4:08:49to work, right? Maybe you have to go to
4:08:51school and do your work. Do that, right?
4:08:52I personally was in school. When I was
4:08:54trading, I was also working at a
4:08:56freaking job at where I was a smoothie
4:08:58boy. So, I would have to clock into work
4:08:59there. And yeah, if you have to go to
4:09:01work, got to do that. Go to the things
4:09:02that you need to do. Again, you really
4:09:03should only be on the charts from like
4:09:049:30 to 11:30 a.m. Eastern time. So, you
4:09:08just need that time of the day to be
4:09:09trading in the morning. Okay? Now, if
4:09:11you have more time in the day, let's say
4:09:13it's later at night and you have more
4:09:14time, what is really necessary is
4:09:17honestly more so than watching videos,
4:09:20right? Cuz you can keep re-watching this
4:09:21course. I would say this is really all
4:09:23you need. I'm not going to lie, like
4:09:24this course that I just made and this
4:09:26video I'm dropping on YouTube is
4:09:28literally all you need. You don't need
4:09:29anything else. This is everything that I
4:09:30know, everything that you need to know
4:09:31to become a profitable trader. But maybe
4:09:33you want to watch, you know, the trade
4:09:34recaps I post every single day. Sure, go
4:09:36ahead and watch that. Maybe you want to
4:09:37watch whatever some educational content
4:09:39revolved around trading. Feel free to
4:09:40watch that. So, if you have time, feel
4:09:43free to watch any [snorts] educational
4:09:45content on trading. Now, at night, what
4:09:48I highly recommend doing or whenever you
4:09:50have time, again, if you still have more
4:09:52free time in your day, what I would even
4:09:54put more so as a priority before even
4:09:57watching, you know, that is back
4:10:00testing. So, you guys need to be back
4:10:01testing. Okay? Back testing one week
4:10:04worth of data every single day. I would
4:10:07say one week worth of data every single
4:10:08day. Okay? You should be back testing
4:10:10with this website called FXR Replay. FXR
4:10:13replay, you can back test NASDAQ, back
4:10:15test the S&P 500. And the same way you
4:10:17trade and you journal your trades, you
4:10:19back test and you journal every single
4:10:21trade you take in back testing. It's all
4:10:23just data collection. And it's all just
4:10:25going to give you confidence in the
4:10:26markets. A lot of people struggle with
4:10:27confidence. A lot of people are scared
4:10:29to enter trades. The only way to get
4:10:31over that is one by risking lower, what
4:10:33I told you guys before, and two is by
4:10:35back testing every single day. So back
4:10:36test with FX replay if you want to have
4:10:38higher confidence in your trades and you
4:10:40want to just overall just be a better
4:10:42trader. I still back test here and
4:10:43there, right? And when I was
4:10:44unprofitable, I was back testing a [ __ ]
4:10:46ton. So I do think it's really really
4:10:47necessary that you guys back test. And
4:10:49then finally, if you have more time,
4:10:50feel free to watch any educational
4:10:51content on trading. And that is really
4:10:53it guys. This is the full entire trading
4:10:54plan, right? So again, first things
4:10:56first, you paper trade until you can
4:10:58quote unquote pass your account. You
4:10:59then buy your first valuation. You then
4:11:01get your funded, you get your payout,
4:11:02and then you reinvest it back to the
4:11:03profits. As simple as that. And then
4:11:05this is your routine every single day.
4:11:06This is what you should be doing. And
4:11:08make sure also guys, not only this, like
4:11:10make sure you have a life outside of the
4:11:12charts. This is honestly extremely
4:11:14important. Make sure you have a life
4:11:16outside of the charts. And what do I
4:11:18mean by this? Going to the gym, right?
4:11:19Eating clean, making your bed, right?
4:11:22Doing the simple things in life to give
4:11:24you discipline. Because I'm telling you,
4:11:26bro, if you can't go to the [ __ ] gym
4:11:27every day and you can't even be
4:11:29disciplined on that, what makes you
4:11:31think you are going to beat the [ __ ]
4:11:33stock market and become a profitable day
4:11:36trader if you can't even go to the gym?
4:11:38If you're [ __ ] fat right now watching
4:11:39this, get up. Go do something, bro.
4:11:41Like, it amazes me how people think they
4:11:44can become profitable if they can't do
4:11:45this simple [ __ ] in life. But, you know,
4:11:47it just kind of enrages me, honestly.
4:11:49Like, trading is one of the hardest
4:11:50skills that I've ever had to learn. So,
4:11:52it is so important that you guys are
4:11:54disciplined outside of your life other
4:11:57than trading, okay? It is so so
4:12:00important. I have wasted so much time on
4:12:02the charts and I've completely destroyed
4:12:04my [ __ ] mental health when I was an
4:12:06unprofitable trader and I'm, bro, I'm
4:12:08getting [ __ ] emotional. Like,
4:12:09literally thinking about how I was back
4:12:11in the days when I was unprofitable and
4:12:13I had nobody telling me how important my
4:12:15life outside of charts was. Bro, I would
4:12:16spend every single waking second of my
4:12:19life looking at the charts, doing
4:12:21something around trading. I wouldn't
4:12:23even be seeing the sun, bro. There would
4:12:24be days I would just not even look at
4:12:26the [ __ ] sun. I wouldn't even be
4:12:27going outside, bro. I was [ __ ]
4:12:29chronically I would literally say pretty
4:12:31[ __ ] depressed. I'm not going to lie.
4:12:33And it completely ruined my trading. I
4:12:35was not a good trader. No matter how
4:12:37much time you put into the charts, no
4:12:38matter how much time you spend learning,
4:12:40that is not going to equate to better
4:12:41trading. I became the most profitable
4:12:43trader I've ever became when I literally
4:12:46just stopped caring so much about
4:12:48trading. When I stopped caring about the
4:12:50money and I only cared about the inputs.
4:12:51I'd only care, you know, when we're just
4:12:53looking at it straight up like this.
4:12:54It's really you just got a trade from
4:12:569:301. You journal, you backed us, maybe
4:12:58watch a video or two and that's it. You
4:13:00shouldn't be chronically on the charts.
4:13:01You shouldn't be checking it 24/7. You
4:13:03shouldn't be hyperfixating on, oh my
4:13:05god, I just took a loss. Let me trade
4:13:06more. Let me take more than one trade.
4:13:08Let me up my risk. How should I do this?
4:13:10Let the profits come to you. If you
4:13:12follow this routine, if you follow the
4:13:14model, if you follow the strategy, if
4:13:16you follow this trading plan, the money
4:13:17will come to you. You will make a lot of
4:13:19[ __ ] money from this skill. But be
4:13:21patient and have your life outside the
4:13:23charts be on point. Okay, that is the
4:13:25advice I'll give you. So, it is
4:13:26extremely important you guys make sure
4:13:28you follow this cuz without a life
4:13:29outside the charts, the charts is a
4:13:31direct reflection of your life. If you
4:13:33are undisiplined off the charts, that is
4:13:35going to bleed through your trading,
4:13:37bro. I'm telling you, I see it so many
4:13:39times, bro. I And I personally went
4:13:40through this, dude. I would wake up
4:13:41every day, not even make my bed, not
4:13:43even brush my teeth, bro. Just hop on
4:13:45the charts with boogers still in my
4:13:46eyes. And would you guys think that I'm
4:13:48a disciplined trader than on the charts
4:13:50if I can't even wake up an hour before
4:13:52market open? No, I was not being good at
4:13:54trading whatsoever. So, yeah, I hate
4:13:57like yelling and I feel like Anyways, I
4:13:59just want to emphasize how important
4:14:01this is, okay? as the final lesson of
4:14:02the final sendoff as I'm saying my
4:14:04goodbyes to you guys. Good luck on this
4:14:06[ __ ] journey. It is an incredibly
4:14:09hard skill to master. I'm not going to
4:14:11lie. Trading is incredibly hard. It
4:14:13wouldn't be if it was so easy, everyone
4:14:14would be millionaires. I always say
4:14:16that. But I've given you guys exactly
4:14:18what you need and this is all I know and
4:14:20this is everything you need to know. And
4:14:22this is the whole entire trading plan
4:14:23for you guys to become a profitable
4:14:25trader. Please don't think I said
4:14:27something and for example, I tell you to
4:14:29journal your trades. Don't just not
4:14:31listen to that because you're like, "Oh,
4:14:32I don't need to journal my trades. I
4:14:34know what how my loss is and why I took
4:14:36a loss and all this stuff." Don't just
4:14:37think I'm just saying this [ __ ] just to
4:14:39say this [ __ ] because I've been in your
4:14:41exact position and I know exactly what
4:14:43it's like. I've of course had so many
4:14:45days, especially as a beginner. Went
4:14:47through a whole like couple months, bro,
4:14:48where I wasn't journaling anything and I
4:14:50was like, I don't need to journal. And
4:14:51then I was my win rate was dog [ __ ] I
4:14:53was losing almost every single trade I
4:14:54was taking. I was like, okay, maybe I
4:14:55should start journaling. And then my win
4:14:56rate improved, right? I was having a lot
4:14:58of times where I wasn't back testing. I
4:15:00had no confidence in the market. Then I
4:15:01started back testing. Then my confidence
4:15:02improved. Right? So all these things
4:15:04that I'm telling you, every single thing
4:15:05I've told you in this video, every
4:15:07single thing I've told you in this
4:15:08course is because I've been in your
4:15:09exact shoes and I know what it's like.
4:15:11Okay? So that's what I want you guys to
4:15:12understand. And that's pretty much it.
4:15:13So yeah, guys, that's going to wrap up
4:15:15this course. I hope you guys take what I
4:15:18told you and actually apply it and
4:15:21actually put in the work. And I'm so
4:15:23excited to see where some of you guys
4:15:25will be in a couple months from here. If
4:15:27you guys are a complete beginner, let me
4:15:29know in the comments. Come back to this
4:15:30video and update me on your journeys. I
4:15:33would love to see that. I'll be checking
4:15:34the comments soon and every couple weeks
4:15:36I'll come back and check the comments
4:15:38and see where you guys are at. I would
4:15:39love for that to be like a place where
4:15:41you're like journaling and like writing
4:15:42how you are doing in your trading and
4:15:44stuff. That would be cool to see. But
4:15:46yeah, again, hopefully you guys of
4:15:47course learn something and apply what
4:15:49I've told you. And the one thing I'll
4:15:51tell you guys with trading is to be
4:15:53patient. You will not see money with
4:15:55this within a week. You will not see
4:15:57money with this within two weeks. Not
4:15:59three weeks, probably not even a month.
4:16:00Probably not even three months, probably
4:16:02not even six months. Sometimes it takes
4:16:04even a year. For me, it took a year and
4:16:05a half. Right? Trading is again a very,
4:16:08very hard skill. And the longer you
4:16:10focus on how you need to make money
4:16:13super quickly, the longer it will take
4:16:15for you to actually start making that
4:16:17money. So, what I would tell you is to
4:16:18have patience and to just focus on the
4:16:20inputs that you need to be having every
4:16:23single day in that trading plan I gave
4:16:24you. Okay? Just follow that and again
4:16:26focus on the inputs and those outputs
4:16:29will come to you. And that's really it.
4:16:30And if you guys want an even more
4:16:32personalized path to profitability, then
4:16:34feel free to click the link down below
4:16:35and apply for our mentorship where you
4:16:36guys get daily live calls with me, Pat,
4:16:38and our student success coach Ronin.
4:16:40We've helped people like Tim get his
4:16:42first 5 figure month just 4 months after
4:16:44joining the mentorship. And people like
4:16:45Angela earning 14K in just one month.
4:16:48And once again guys, thank you so much
4:16:50for watching. And if you're interested
4:16:51in the mentorship, click the link in the
4:16:52description down below to get started.
4:16:54And I'll see you guys in the next video.

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