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I Always Wait For THIS Before Placing A Trade (Full Checklist) — Transcript

by Waqar Asim · 7,132 words · 1,005 segments · language en · Watch on YouTube

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0:00Whether you are a successful prop firm
0:01trader or profitable on your brokerage
0:03account or even a hedge fund trader,
0:06supply and demand, market structure,
0:07points of interest, these are the
0:09strategies and views that all of these
0:10successful traders use as their
0:12foundation. Day one of trading, what do
0:14you learn? You learn about market
0:15structure, trend, and points of
0:17interest. And even on my podcast when
0:19I've spoken to some of the most talented
0:20traders in the world, individual
0:22traders, institutional traders, hedge
0:24fund managers, even traders on the New
0:25York Stock Exchange, what do they do?
0:27market structure, support and
0:29resistance, points of interest, and
0:30trend. And this is all well and good as
0:33a foundationary strategy. But for most
0:35traders that are watching this video, in
0:37fact, most traders around the world, if
0:39you follow the same footsteps, you will
0:41stay frustrated, confused, and put
0:43bluntly, you will stay broke as a
0:45trader. Now, you might be thinking,
0:46wait, that doesn't make sense. You've
0:47just said the best traders are doing
0:48this, but if I keep doing the same
0:50thing, I'm going to struggle in my
0:51trading. Well, let's actually pull back
0:52the curtain and see what's the reality
0:54of these traders that are utilizing
0:56market structure, trend, and points of
0:57interest. Whether it's the number one
0:59profit traders across the world, whether
1:00it's World Cup champions or whether it's
1:02institutional traders, they all trade
1:05these things, but they will use these
1:06things only for their entry criteria
1:09only for the final checkbox of getting
1:11into a trade. But the trade idea, the
1:14actual reason for getting into that
1:15trade, that could be totally other
1:17things. The reality is two traders may
1:19enter at the same point, but they might
1:20have completely different analysis and
1:22completely different objectives. But
1:24simply, one could be scalping to hold it
1:26for 20 minutes. Another person could be
1:27entering to hold it for 2 years. And you
1:29cannot just borrow a piece of a strategy
1:30from a successful trader. Slot it in in
1:33your own way and hope that it works
1:34because you're missing all of the
1:35context that these professional traders
1:37are utilizing and you only rely on the
1:39trend, supply and demand, and points of
1:41interest. So, if you are a prop firm
1:42trader, an intraday trader who likes to
1:44have a high win rate and a high
1:45riskreward, stick around for this video
1:47because if you've learned the foundation
1:49of trading and you are still struggling
1:51whilst you trade on propforms and you
1:52take losses and you don't know why. But
1:54when you back test, it does work. For a
1:56trader, this can be very confusing.
1:58There's a lot of emotion and it leaves
1:59you frustrated and it means you end up
2:01strategy hopping, always changing your
2:03strategy every few months and always
2:04watching YouTube videos hoping to find
2:06answers for why am I confused? Why do I
2:09keep taking losses even though I'm
2:11following the plan of the successful
2:12traders? And this is not a video to bash
2:14and hate. In fact, even on this channel,
2:16even in my own trading career, I'm a big
2:18believer in market structure, trend
2:20analysis, points of interest, how to
2:21refine points of interest. All of these
2:23things I've made multiple guide videos
2:25on and is a foundation in my own trading
2:27also. But the harsh truth is in this day
2:29and age, this is simply not enough. In
2:312015, when I first started trading,
2:33market structure was almost that holy
2:35grail. Fast forward a decade now in my
2:37trading and I can see it no longer works
2:39like it used to because we've seen the
2:41rampant rise of inducements. How
2:43liquidity is the cornerstone of price
2:45movements and how all strategies, all
2:47common beliefs, whether it's trend
2:49lines, Fibonacci, support and resistance
2:51and even market structure, points of
2:53interest and supply and demand, they
2:54have all become liquidity. So unless we
2:56understand what an inducement is, how we
2:58can forecast it, how we can confirm it,
3:00and how we can trade with it, we are no
3:02longer going to be victims of getting a
3:04stop-loss hunt on these points of
3:05interest of supply and demand. In fact,
3:07we are going to be more informed to know
3:09which points of interest to be trading
3:11and how to trade outside of points of
3:13interest with more confirmations. So, in
3:15this video, I'm going to be giving you a
3:17step-by-step guide on how to trade
3:19outside of points of interest that is
3:21going to give you higher quality setups
3:22than trading inside of points of
3:24interest. I'm also going to be showing
3:25you how to avoid losses in wrong points
3:28of interest or even read beforehand if a
3:30point of interest is about to fail. And
3:32it's not only theory. I'm going to be
3:34supporting these points with recent
3:35trades and recent price action to show
3:37you everything clearly in action. So,
3:40let's jump right in. First of all,
3:42trading 101. What is it? The first thing
3:44you learn is a sequence of higher highs
3:46and higher lows. This higher highs and
3:48higher lows equals a bullish trend. The
3:50opposite, a sequence of lower highs and
3:51lower lows equals a bearish trend. Very
3:54simple. And once you've had your day one
3:56of trading and you've understood market
3:57structure, you come to realize that
3:59overall trends are sequence of higher
4:01highs and higher lows. Well, within
4:02that, you're going to have internal
4:04trends. You're going to have a sequence
4:05of internal higher highs and higher
4:07lows. And then also, you're going to
4:08have a sequence of bearish portion of
4:10lower highs and lower lows. Even if the
4:12market is overall bullish, you will
4:13still have bearish sequences inside
4:15these retracements where you will have
4:17bearish price action, lower highs and
4:19lower lows inside. So when you look at
4:21price action like this, you will see
4:22that well there's trends inside of
4:24trends and that's where day two of
4:25trading can feel a little bit confusing.
4:27So then we fast forward to day three of
4:29trading and we say okay how do we do a
4:31top- down analysis? How do we connect
4:32all these time frames together to get a
4:35story and a picture out of this? And
4:36this is an example of that where you
4:38realize when you do a top down analysis
4:40you might see a bullish trend because
4:41you have a sequence of higher highs and
4:43higher lows strung together. So you have
4:45a bullish channel and a bullish trend.
4:47But you realize this is a story being
4:48painted where you'll see overall market
4:50structure was bearish. A sequence of
4:52lower highs and lower lows. And you can
4:53see on the internal side there is a
4:55sequence of lower highs and lower lows
4:57and then internal higher highs and
4:58higher lows. So when you see all of this
5:00you're not thinking oh trend is bouncing
5:02around. You connect it together. You see
5:04that the internal trends are the
5:05building blocks for external trends. And
5:07you see that the overall trend was
5:08bearish. We had this last lower high
5:11that made this last lower low. So this
5:13internal bullish higher highs and higher
5:15lows became a objective to come all the
5:18way back to this higher time frame
5:20supply zone. Put simply, the market was
5:22bullish. Yes, but it was bullish until
5:24we arrived to the lower high that made
5:26the lower low. We had found a supply
5:28zone. And when price arrived to that
5:29supply zone, what would we expect? Well,
5:31because we had at the last time price
5:33was here, we made a lower low in the
5:35market. When price returned, we would
5:36expect once again a lower low in the
5:38market. But we can see that's not what
5:40happened. So these are important market
5:42points because now we can see that there
5:44was a trend shift where we had initially
5:46a bearish market and then we had a
5:48temporary bullish market to then expect
5:50a bearish market to continue that didn't
5:52happen and the bullish market continued
5:54and took over and we had a breakoff
5:56structure. So from this last lower high
5:59that made this lower low we failed to
6:01make a lower low. This did not happen.
6:03In fact, we made a higher high and
6:05therefore this area over here became an
6:07important level because this is now our
6:09break of structure point where we had a
6:12lower high that made a lower low in the
6:15markets go on to make a higher high in
6:17the market defined as a break of
6:19structure. So once your day three of
6:20trading is complete, what does day four
6:22look like? Well, then we zoom into these
6:23areas and we say, okay, an area that
6:25failed, a supply zone that failed and
6:27has now led to a bullish break of
6:29structure. Let's understand this area
6:31because this is a zone of relevance. We
6:33call it the main push. We can now see
6:35that there is a new trend which is
6:36bullish. Therefore, we need to be
6:37looking for buys because the trend is
6:39your friend. Momentum is that way. The
6:41supply zone has failed. The sellers are
6:43no longer in control. This is an
6:45important pivot point. So, as you can
6:46see, I'm giving you a step-by-step guide
6:48in this video of everything from start
6:49to beginning on these quality setups.
6:51But there's only so much I can show on a
6:53YouTube video, which is why I prepared
6:54for you a free high-quality video
6:56production course across 3 days, which
6:58is literally thousands of slides with
7:00diagrams, definitions, charts, examples,
7:02everything that you need to find
7:03clarity. And it's absolutely for free,
7:05so that you can take yourself from
7:06probably a confused, frustrated, and
7:08unprofitable trader towards a profitable
7:10scalper. So, if you'd like to get your
7:12hands on this, all you need to do is DM
7:13me on the WWA trading page the word
7:16course. So, we now say, where did the
7:18breaker structure happen from? It
7:19happened from this low. and led to this
7:21high. So therefore, this becomes a
7:23trading range. And then the next thing
7:24to do after you've done that market
7:26structure read, we found a trend, we
7:27found a portion of that trend that is
7:29important. The next step becomes points
7:31of interest, usually known as supply and
7:33demand. So demand areas in this case in
7:35a bullish market are going to be areas
7:37where you expect price to continue to be
7:39bullish from. Locked in zones. Instead
7:41of this entire portion being an area
7:43possible to buy, you find pockets of
7:45opportunity, concentrated orders,
7:47concentrated demand, concentrated buyers
7:50activity. This is a demand area. So we
7:52are no longer focusing on its entire
7:54zone. In fact, we can focus on more
7:55probable areas. Now there's many ways to
7:57do this because for example, a Fibonacci
7:59trader will say we have the 50% here,
8:00the 61.8, the 70 fib over here.
8:03Therefore, this becomes my pocket to
8:04look for buys from. An EMA trader, what
8:06will they say? They'll say my moving
8:08average is somewhere here. Therefore, I
8:09need to look to buy on a touch of this
8:11moving average. What would another
8:12trader say? They'll say, "Oh, we have a
8:14trend line, one touch, two touch, trend
8:16line somewhere over here." So, you can
8:18see that there's areas of a lot of
8:19opportunity where you have interactions
8:21between a Fibonacci level, a EMA level,
8:23and a trend line level. Therefore, this
8:25is the areas where you can get these
8:26stop-loss hunts, especially if you say,
8:28"Oh, we've got a touch over here,
8:29another touch over here, support level."
8:31You can get a lot of concentrated ideas,
8:33but that means liquidity. If a lot of
8:35people are entering the market,
8:37liquidity is orders. when more orders
8:39enter the market, this is a big tugofwar
8:42between supply and demand because if
8:44there's more buyers, there has to be
8:45more sellers to match them off. And if
8:47there isn't enough or if the market
8:48maker can see if all of these retail
8:50traded buyers are coming in, what if I
8:52just take their orders, take them out of
8:54the market and then move the market
8:55themselves, this is known as a liquidity
8:58run or I like to call it a form of an
9:00inducement. If you know that 95% of
9:02traders lose, that's a fact. That's a
9:04statistic that is published and we see
9:06that 95% of traders they use head and
9:08shoulder patterns, supply and demand,
9:09market structure, smart money concepts,
9:11trend line, Fibonacci. If every trader
9:13is utilizing the same things and we can
9:15see it all over the internet and
9:16institutions also know this and they can
9:19see our orders, then it's very easy for
9:21them to target, manipulate, show price
9:23action to convince people to get in and
9:25in the end take all of their liquidity,
9:27take all of their orders and stop
9:29losses. So the retail trade is left
9:31confused, frustrated and out of the
9:33market and the institutions can now be
9:35in the market with their money and
9:37engineer price to always win. So to put
9:39this a little bit more simply, where
9:41would an area where a smarter trader
9:43would be getting involved with? Even a
9:45profitable trader, where would they be
9:46getting involved with? Like I said at
9:48the beginning, let's focus on an
9:49institutional trader, a hedge fund
9:51manager, who has a team of analysts who
9:53has quants, who has great macroeconomic
9:55understanding, understands fundamentals
9:56to a tea, and knows how to generate
9:58intermarket ideas and also has years in
10:00the market of experience. Or you take a
10:02swing trader who's profitable on prop
10:04firms. All of these guys have an edge to
10:07generate ideas, to generate probability,
10:09and the execution becomes these points
10:11of interest. So what are they going to
10:12be looking for? A typical profitable
10:14supply and demand trader. This is maybe
10:15your day 100 in trading. So fast forward
10:17to that point, you'll realize, okay, if
10:19I have all of that edge baked in, where
10:21is a technical place I can get in? And
10:23they'll realize that you have demand
10:24areas at the bottom, for example, an
10:26extreme demand. And then a very
10:27interesting portion over here is when
10:29you have this last retracement, this
10:31last pullback before the push out,
10:34before the break of structure. So just
10:36to reiterate, before the break of
10:38structure line, the last pullback before
10:41the break of structure happens. If we
10:42can find that area, this area is also
10:45known as a decisional demand area. So
10:48supply and demand traders, market
10:49structure traders, points of interest
10:50traders, the ones that are looking in
10:51the right areas, they will be focusing
10:53on these two areas, a decisional and
10:55extreme alongside the trend. They'll
10:57have a few other factors, but this is
10:59the foundation of it. Now, this is a
11:00great place to start your trading. This
11:02is a great place to be focused on so
11:03you're not only focused on those random
11:04Fibonacci and EMAs and trend lines and
11:07the mess that most traders find
11:08themselves in. At least now you have
11:09refined areas to be focused on. But the
11:11problem is even though this is a great
11:13idea, even though this is leading to a
11:15lot of profitability for a lot of
11:16people, this leaves most people confused
11:19because it ends up being like those
11:20horses that have those blinders on that
11:23they can see only with tunnel vision.
11:24They can only see in one direction and
11:26they cannot take in all the information
11:28around. And that's the problem with this
11:29framework. It's a great foundation and
11:31unless you have a great edge because of
11:33other reasons and know how to generate
11:35trade ideas because of fundamentals,
11:37this alone is no longer enough. in 2025,
11:40in 2026, this is no longer enough.
11:42Because I'm sure this sounds familiar to
11:44you now. You'll wait for price to come
11:45back to one of your points of interest.
11:47You'll say, "Okay, let me now focus on
11:48my decisional demand." You'll wait for
11:50price to give a rejection. And you say,
11:52"Oh, perfect. I've seen a break of
11:53structure. I've seen price shoot higher
11:55now and we're now breaking past these
11:57levels. And then I wait for price to
11:58come back into the zone and I'll look to
12:00buy." And that becomes the rejection on
12:02the demand area. But what is the market
12:03doing these days? It does something like
12:05this now where we just see we have a
12:06buildup of liquidity. We have a smart
12:09money trap present. We get an
12:11inducement, a run of liquidity of that
12:13trend line known as an inducement. Price
12:14comes into the smart money trap to
12:16excite in buyers. We mitigate that
12:17inducement and the sellers take over
12:20just to do a stop-loss hunt. And then
12:21when the market has taken all of the
12:23stop- losses in that area, all of the
12:25stop- losses of that demand area, then
12:26this inducement is now complete. The
12:28market maker has manipulated everyone.
12:30And then market shoots higher without
12:32the majority of traders because the
12:34majority of traders lose. If this sounds
12:35familiar to you, you have to stick
12:37around for this video because this type
12:38of inducement where price is engineered
12:40to invite people in. Inducement, put
12:42simply, is a market movement, a sequence
12:45of price action to invite people into
12:47the market based on if they're a trend
12:49line trader, it bounces on their trend
12:51line. If they're a support and
12:52resistance trader, it respects their
12:53support and resistance. If they're a
12:55smart money trader, it respects
12:56perfectly a smart money zone. If you're
12:58a market structure trader, it rejects on
13:00a demand area. And then what does it do?
13:01It invites in traders and then takes
13:04them out. takes them out, takes their
13:06stop losses, and then the key part goes
13:08in their direction. Anyway, so this is a
13:10sequence of invite and destroy. Invite
13:13in liquidity. Take the liquidity and
13:15move the market without them. Anyway,
13:17this sequence of price action is
13:18something that is rampant. You've seen
13:20on this channel. It happens every single
13:21day, multiple times a day on just one
13:23currency pair, on one asset class. And
13:25I've shown on this channel hundreds of
13:27examples, hundreds of trades that I've
13:29taken in my public signals, in my live
13:31call outs, with my broker sync journal,
13:32with my track record, on the my effects
13:34book. Everything that I've shown you has
13:36always been around inducements. It's the
13:38key cornerstone of my trading. And it's
13:39the most important thing to focus on.
13:41Yes, I will use market structure. Yes, I
13:43will use trend, but I will not use it
13:44blindly without understanding the real
13:46market movers. The real institutional
13:48intent is always going to be behind
13:50understanding inducements. And if you
13:52don't, you're going to be trading in the
13:53right areas and getting it wrong time
13:55after time after time and not
13:57understanding why, leading you to
13:58strategy hop or give up altogether. So
14:00instead of us now looking at the market
14:02from only a support and resistance point
14:03of interest perspective, let's improve
14:05this further and build a strategy around
14:08inducement instead. So there's going to
14:09be a few steps to this. Number one is
14:11going to be quality of the point of
14:13interest. So what I'll do is I will
14:14focus on these points of interest and
14:16try to observe what's going on inside
14:18that point of interest. Because let's
14:19say price goes lower and then goes
14:21higher, gives a break of structure. We
14:22need to know what happened inside of
14:24here cuz there could be a few options.
14:25Price goes lower and then price goes
14:27higher. Very simple reversal pattern
14:29like this. Whereas just a sequence of
14:31lower highs and lower lows that becomes
14:32higher highs and higher lows. Very
14:34basic, not much information, not much
14:36quality in there. But another version
14:37could be price comes down into that
14:39area, it consolidates a bit, takes its
14:41time, and then shoots lower and then
14:43flies higher. This gives me a lot of
14:45information. It tells me where the
14:47manipulation was. It shows me where the
14:49large bullish candles and momentum came
14:50in. And this gives me an area to focus
14:52on and say, "Okay, here where I have
14:54inducement that led to volatility, large
14:57reactions, imbalances, gaps, engulfing
14:59candles, this area is qualified and
15:01improved." So, it's not just about
15:03finding a decision or an extreme and
15:04just treat them all the same. It's about
15:06finding them and then refining them to
15:08qualify them. And the way I like to do
15:10it is a few. Number one is going to be
15:12duration. Duration. The longer the POI
15:15takes to form, the better. Because
15:16there's a difference between price going
15:17bullish, consolidating and then keep
15:19going bullish. This point of interest,
15:21the duration of the point of interest is
15:23just this small amount of time. But you
15:25might have another point of interest
15:26where it goes bullish and then
15:27consolidates takes its time chops around
15:30and then goes bullish. So this area,
15:32this point of interest, the
15:33consolidation, the zone of the point of
15:35interest is not just maybe an hour.
15:37Well, it might be a couple of days.
15:38Meaning to say the longer the duration,
15:41the more quality the point of interest
15:43is. Number two is going to be our depth
15:44of retracement. Meaning if we have an
15:46impulse and then we do have a long
15:47consolidation and then price goes
15:49higher, that's not going to be the same.
15:51Even though it has the duration as
15:52something that goes and consolidates but
15:54goes deeply lower and then continues
15:56higher. The duration of time is the
15:58same. The difference is from the low to
16:00the high. This one only retraced 20%,
16:03this one retraced 70%. Meaning to say
16:06the deeper the retracement, the better
16:08that point of interest is likely to be.
16:10So if you combine these things together,
16:11the longer the POI takes to form and the
16:13deeper that retracement becomes more
16:15into discounts, more into cheaper price
16:17levels to invite in more buyers and
16:19sellers take profits because price has
16:20gone lower, these are going to be better
16:22areas of interest. And lastly is going
16:24to be an inducement. If we can find an
16:26inducement inside of that point of
16:27interest and this is alluding to the
16:29fact of what I mentioned here where they
16:30have these two types of areas, the one
16:32with the inducement is always going to
16:34be more qualified. So now when you come
16:35to these areas of interest, you focus on
16:37these three criteria. Do I have depth?
16:39Do I have duration? Do I have an
16:40inducement? If I have these three
16:42things, this is a more quality point of
16:44interest, but it's not going to be a
16:45100% positive point of interest. This is
16:47just how you qualify. So, you take all
16:49of the points of interest of decision
16:50extreme. You put it through this filter,
16:52and you're left with just a few quality
16:54ones. These ones are the ones you focus
16:56on, but the job is not done. Once you
16:57found the right points of interest, you
16:59still need to see how price arrives to
17:01them, respects and spends time in them,
17:03rejects them or doesn't, the story
17:04inside that points of interest is just
17:06as important. So let's say we have price
17:08action like this where we formed a
17:09higher low that made a higher high. We
17:11had a nice deep retracement and then we
17:13started to make the new higher high in
17:15the market. We had a new main push.
17:16Let's analyze this cuz we know the trend
17:18is now bullish and we have a new main
17:20push from this higher low to this higher
17:22high. We have now found a bullish main
17:24push. So we can start to see okay where
17:25was that breakup structure point and we
17:26say oh it was this area. This area led
17:28to that break of structure the last
17:30pullback before the push up. This is
17:32known as our decisional. And then the
17:33origination point that started that
17:35move. The higher low is known as our
17:37extreme. The higher low that led to the
17:39higher high. Perfect. We have our now
17:40two points of interest. Let's qualify
17:42them now. So number one is going to be
17:44duration. We can see that this one took
17:46a long time to form. We started to
17:48consolidate around this area and we had
17:51that inducement. So the duration is
17:53quite long. The depth of that
17:54retracement point number two is quite
17:56extreme. We went almost all the way back
17:58down to the beginning. So almost a 100%
18:00retracement. And the third step, the
18:02most important in my opinion of a point
18:04of interest, we also had that buildup
18:06inducement and then large bullish
18:08momentum. So this fits all three
18:09criteria. We had depth of retracement,
18:11duration in that retracement and in that
18:14point of interest and then we had an
18:15inducement in that point of interest.
18:16Let's now analyze the decisional point
18:18of interest where we see okay, we had
18:19this push up and inside that the
18:21retracement well the depth of that
18:23retracement is very shallow, maybe 30%.
18:25So not the best. The duration well it's
18:27only a short amount of time. This one
18:29was all of this time from here to here.
18:31We had a long duration. This one is
18:34maybe a quarter of the time. And we can
18:36start to see there was just two equal
18:38lows, a level of support, no inducement.
18:40So no real depth in the retracement, no
18:42real duration in that point of interest
18:43and no inducement. So the decisional
18:45compared to the extreme, the quality is
18:47totally different. And this is where
18:48things get interesting because that
18:50decisional area is still where typical
18:51supply and demand traders are going to
18:53be getting in the market. They are still
18:54interested in this area. So it still
18:56becomes liquidity. Why? Because a lot of
18:57people are going to be buying in this
18:59area and stop losses right below. This
19:01becomes a concentrated zone of orders, a
19:04crowded market of retail traders, dumb
19:07money. They're going to be getting into
19:08the market in this area cuz they see a
19:10point of interest. They're going to be
19:11waiting for an engulfing, maybe a left
19:13and head and right shoulder, whatever.
19:15They'll wait for and they're going to be
19:16getting in the market and their stop
19:18loss is right below. So, what will the
19:20market do? It will engineer price to
19:22show them what they want in the area
19:24that they want. Show them the trend
19:25line. Show them the rejection. Show them
19:27the left head and right shoulder. Show
19:29them that bullish price action breakup
19:30structure. And then it's going to take
19:32all of that liquidity of this zone, make
19:34an inducement, and shoot lower. Once it
19:36shot lower, and it's grabbed all of that
19:38liquidity that was there. It doesn't
19:40have to go here. It doesn't have to go
19:42to the extreme. We've now induced
19:43liquidity. We have now formed an
19:45objective of engineered price action to
19:47get people involved. We take them out
19:49with this inducement and then we can fly
19:51thereafter. So if we can find this
19:53inducement, know when it's going to
19:54happen, how to confirm it, how to spot
19:57it, how to refine. If we can do all of
19:58these things, we can catch a ride with
20:00the big players. Our job is not to
20:02predict the market. It's not to forecast
20:03and have a crystal ball and see what's
20:05going to happen in the future. Our job
20:07is not to predict, it's to react. Our
20:09job is not to catch the whole move. It's
20:11to catch the most probable portion of
20:13the move. Our job is to react to what
20:15the big players are doing. We find the
20:16digital footprints of the big players.
20:18We confirm it with our processes and
20:20then we catch a ride with them. Not the
20:22entire move, just the most probable
20:24portion of that move. And therefore, if
20:25we can learn how to find these
20:27inducements, we know how to find trades
20:29outside of points of interest,
20:31specifically when points of interest
20:32fail. And this is the focus of this
20:34video where you can take trades that are
20:36nonpoints of interest, nonPOI based,
20:38still with the trend and with an
20:40inducement on your side. And this is
20:41going to lead to more volatile moves.
20:43price is going to go to your direction
20:45to your profits faster and easily
20:47because the dumb money was already taken
20:49out and therefore just the institutional
20:50flow is left. Now, this is enough
20:52theory. I want to jump into price action
20:54to show you a recent example of a trade
20:56that I took this week. Okay, now jumping
20:57into everyone's favorite part of the
20:58video, chart work. So, let's break down
21:00a recent trade of something that is
21:02showcasing exactly this in action. So
21:04first of all, quick trend analysis. We
21:05can start to see that we had a bearish
21:07market, a sequence of lower highs and
21:08lower lows, and then we had the market
21:10make this low, respect the previous
21:12inducement demand area. Price came into
21:14that area and then respected it and then
21:17started to give a bullish push out. So
21:19we formed higher high starting from this
21:21lower low breaking structure, market
21:24push being bullish. So if we can start
21:25to see now the market is bullish, we
21:27need to now understand points of
21:28interest and intent. So let's quickly
21:30drop down to a H1 to see exactly what's
21:32going on in this area. So as we can see
21:34price made the higher high in the market
21:36and then started to retrace lower and
21:38lower and lower until eventually we
21:40formed price towards a demand area on
21:43the higher time frame. Price has now
21:44shifted. What I mean by that is price
21:46was forming the sequence of lower highs
21:49and lower lows in the market and
21:51eventually we formed the final lower low
21:53and then we started to have a bullish
21:55breakout. Right? We had this lower low
21:57in the market. these bearish trend that
21:59started to have a bullish higher high.
22:02We had a bullish break of structure. So
22:03let's mark that out. The last lower high
22:05that made the lower low switches and now
22:07we have a bullish break of structure. So
22:09this becomes very basic price action
22:10where the last lower low that made a
22:13higher high breaking past the previous
22:15lower high that made that lower low
22:18we've had a break of structure. So that
22:19means we look for that decisional and
22:21extreme we find that demand area and
22:23then we see okay price came in and
22:25induced it. So we need to understand why
22:26did price come in give a bit of a slow
22:29consolidation a bit of an engulfing and
22:31then eventually induce that wick into
22:33that demand area and then shoot out. So
22:35we took the liquidity of the demand area
22:38of that extreme and then we had a local
22:40inducement. Also if I zoom in even more
22:42closely we can see that zone that became
22:44the trap and then took everyone out. So
22:46when price took everyone out what do we
22:47see? We saw a buildup of liquidity, a
22:49sweep of liquidity and a push out
22:51breaking structure. What happened after
22:52that? We had an inducement. Price took
22:54this wick and induced came lower formed
22:57equal lows invited in buyers once again
23:00buildup inducement pushed lower taking
23:03out these lows. Smart money traders see
23:05a sweep. They wait for that bullish
23:06breakout take out that high to make a
23:08new high. And then all of this area
23:11buyers are loading up. Buyers are
23:12loading up. All of that demand area
23:14liquidity already taken out by this
23:16sweep. And then smart money trade is
23:17getting in in this area. Last inducement
23:20to then move price higher. So now we
23:22know the inducement of control is here
23:23or to put it more simply first when
23:25price arrived at that demand area we saw
23:27a bit of hope and that was taken out.
23:30Then we saw smart money traders pattern
23:32with hope they also got taken out. So
23:35all of these inducements we took out the
23:36demand area liquidity we took out the
23:38smart money traders liquidity and this
23:40is the last inducement that led to large
23:43bullish engulfing imbalances large
23:45momentum. Look how quickly price flies
23:47once we have the inducement on our side.
23:49And now that we have found that
23:50inducement of control where this fake
23:53demand area got induced that led to
23:55price pushing higher breaking structure
23:57now real breaks of structure once we've
23:59had that real push out then we need to
24:01understand okay where was that
24:02decisional well it's right here because
24:04when we focus on the momentum that led
24:06to this high in the market now we've
24:07seen that the buyers took control after
24:09that inducement price went on to make a
24:11new higher high and also led to a break
24:12of structure. Where was that last
24:14retracement before the break of
24:16structure? The last retracement was
24:18right here. So I want to focus on this
24:20area. Let's refine it down. So this is
24:22that portion on the M5 time frame. And
24:24let's see right before that breaker
24:26structure happened, this last pullback,
24:28I need to put it through my filter of
24:30the three steps. I'm going to add a
24:31bonus one just as a key tip. The fourth
24:33one, which is going to be time. So
24:35number one, if you refer to your notes
24:36from earlier in the video, was depth.
24:38The depth of that retracement. So let's
24:40do it as a quick Fibonacci just to
24:42measure it. I don't believe in
24:43Fibonacci. I think they're not important
24:45at all. I think it's just probability.
24:47It's not actually causation. It's
24:48correlation. But anyway, we can start to
24:50see where did price retrace to from this
24:52low where the inducement happened to
24:53this internal high before that
24:55retracement to make the higher high.
24:57That portion of retracement is our
24:58decisional. This last retracement before
25:01the break of structure, it didn't cross
25:03even the 50%. In fact, if I measure it,
25:05it's about a 25% retracement. So, if we
25:07see a 25% retracement, the depth of that
25:09retracement is very shallow. So
25:11checklist number one of the three of
25:13qualifying points of interest depth very
25:15bad. Let's now measure duration in terms
25:17of time. So let's look at the extreme
25:19for example where we had price come into
25:21the zone and before it broke out how
25:23long did it take? It took 6 hours and 25
25:26minutes and an inducement before price
25:28went higher. Now let's measure the same
25:29over here from that retracement
25:31beginning to the bottom. It is just 2
25:34hours and 45 minutes. So less than half
25:36than the previous one. In general this
25:37is not terrible but it's still on the
25:39lower side. If we have a terrible depth
25:41in retracement, a very average duration
25:43and then the last step is looking for
25:45that inducement which we have over here.
25:46We had the buildup of one touch of a
25:48support, second touch, third touch and
25:50then finally that inducement that led to
25:52the higher high. And the last bonus
25:54filter that I had for you was time and
25:56the problem is this is happening during
25:57Asia range. Usually Asia range related
26:00moves are weak or false or usually
26:02traps. So when I collectively analyze
26:04this the step number one of the filter
26:06depth, it was very weak. I'm going to
26:07give it a 2 out of 10. When I see the
26:09duration, let's call it a 4 out of 10.
26:11When I see the inducement, it did have
26:13one. Let's put that as a 8 out of 10. It
26:14was a pretty good one. And then time, it
26:16was very bad. It was during Asia. So,
26:17when I put it through and add up all the
26:19scores out of 40, if I give each one 10
26:21points, we got about 15 points out of
26:2440. So, it's actually a very low score.
26:26And this is going to be therefore
26:27overall a weak point of interest. So
26:28now, as I do my analysis and I come into
26:30current price action into that
26:32decisional demand. Once I put it through
26:33that filter, I know that everyone is
26:35going to be looking here because it's a
26:36very basic supply and demand area.
26:38market structure trend is bullish. We
26:40found a bullish point of interest. It's
26:41a decisional. We start to see a few
26:43telltale signs that this is going to be
26:45an issue or it's more likely to fail.
26:47Number one, I read price action before
26:49and I see, oh, what do we have over
26:50here? We have a buildup of liquidity.
26:52One touch, two touch, three touch, four
26:55touch, five touch. We have a zone where
26:57there is crowded rejections and then we
27:00get an inducement. That inducement leads
27:02to the breaker structure. After that, we
27:04see buyers try to get in. We get equal
27:06lows, we get a sweep, we get a bullish
27:07trend line and this also goes on to
27:09fail. So a buyers attempt that is
27:11failing is showing seller strength. More
27:13importantly, we another buildup of Asia
27:14high and another inducement. So all of
27:16this information is telling me we have
27:18inducer number one, inducement number
27:20two and a failed smart money demand
27:23area. So this is showing me overall
27:25seller strength plus look at that
27:27momentum, heavy sellers strength. And
27:29then we arrive to our demand area, that
27:31decisional demand. What do we get? We
27:33start to get a bullish break of
27:34structure. We start to get a build up
27:36and a sweep. Smart money traders
27:38interested. We start to get a trend
27:39line. A lot of people are interested in
27:41this zone because we've got a bullish
27:42breaker structure. Market structure
27:44traders trend line. So the z line
27:45traders are interested. Build up and a
27:47sweep. Smart money traders are
27:48interested. We're getting a lot of
27:50activity. And then what happens? Price
27:52shoots lower. We engineer price to
27:54invite people. We sweep them out. This
27:55is known as an inducement. And then what
27:57do we see? Then we see clarity. We see
27:59the last lower high that made that lower
28:01low. We now have a bullish breaker
28:03structure. We now find that bullish
28:04breaker structure after that inducement.
28:06Let's mark it out. We find that demand
28:07area related to that inducement. This
28:09inducement led to this bullish break of
28:11structure making a new higher high. We
28:13wait for that retracement. And then this
28:14is the key. This is where we look for
28:16our entry. Remember my trinity that I
28:18speak about in every single video. It's
28:20always the same. I look for manipulation
28:22known as an inducement. And then I find
28:24the lower time frame confirmation and
28:25time window. Inducement time lower time
28:27frame. Remember that. That's the key to
28:29my trading. When I look for that, I see
28:30the inducement led to this very obvious
28:32trend line. So, what am I seeing? I'm
28:34seeing liquidity around this trend line.
28:36So, I see a secondary inducement right
28:39before my key time window. How do I know
28:41it's my key time window? Well, I custom
28:42coded an indicator for myself where this
28:44gray box is my key time window. So, I
28:46start to see inducer number one that led
28:49to a bullish breakup structure. Inducer
28:51number two of this very obvious trend
28:53line inside my demand area of that first
28:56inducement. Perfect. And this is the key
28:57to it all. If I see an inducement now of
28:59that trend line that I mentioned that
29:00led to a break of structure, my key
29:02window opens and then I see the first
29:04touch that leads to a bit of bullish
29:06momentum induce again. So I've got a
29:07secondary inducement in my key time
29:08window that leads to a break of
29:10structure internal breakup structure and
29:12then what do I see last step which is
29:14the final nail in the coffin. I once
29:16again see a inducement right here. So
29:18this is a very clear picture where I'm
29:20getting a sequence of bullish switches
29:23and inducements. Start at the beginning.
29:25Inducement number one over here that
29:27leads to that full breaker structure.
29:28Then we get inducer number two that
29:30leads to another breaker structure right
29:31here. Then we get inducer number three
29:32of this wick leads to a another breaker
29:35structure. And then this one over here
29:36that leads to the move. So our entry
29:38becomes when we get the time window. We
29:40get inducement and lower time frame
29:42confirmation. We enter right here. Why
29:44do we enter right here? Well, it's the
29:45lower time frame confirmation of do I
29:47have a 3 to seven pip stop loss? That's
29:49my sweet spot. Yes, I do. I have a six
29:51pip stop loss approximately. I find this
29:53inducement that led to that break of
29:55structure in that key window box after 2
29:57p.m. UK time and that becomes my entry.
29:59My break even becomes on the M1 shift
30:01and then I take my partial at 1 to three
30:03riskreward as always and then my full
30:05volume at the 1 to 10. So that becomes
30:07my trade now where I got in based on the
30:09decisional demand failing finding an
30:12inducement then a lower time frame
30:13confirmation in my key time window. And
30:15just like that you can see now we had a
30:17pretty much perfect trade where we had
30:19everything that we needed. inducement of
30:20a failed POI. We had time window. We had
30:22lower time frame confirmation and a very
30:24snappy tap and go trade leading towards
30:26a 1 to three and 1 to 10, meaning a 6.5%
30:29gain in a single trade. A very typical
30:31trade, a breadandbut trade that you've
30:33seen me show you many times on this
30:34channel. And this is just another one of
30:36those typical examples of a high quality
30:38trade. But as you know for all of these
30:39things to work you have to focus on one
30:41thing and that is a restricted trader is
30:43a profitable trader.

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