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I Marked EVERY Trap In One Week Of Price Action — Transcript

by Waqar Asim · 6,862 words · 958 segments · language en · Watch on YouTube

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0:00in a single day or in a single week, how
0:02many traps do you think appear? You know
0:04those occasions where you get into a
0:05trade, it goes where you wanted it to go
0:07to, it just simply hits your stop loss
0:09right before going exactly where you
0:11wanted it to. When it happens once or
0:12twice, it feels annoying, feels
0:13frustrating, you say it's part of the
0:15process, but when it happens countless
0:16number of times, when it stops you from
0:18getting your funded accounts, when it
0:19holds you back from getting your first
0:21ever payout, then you have to realize it
0:22is a systemic issue. And while you may
0:24think a trap is a rare occurrence, I'm
0:26going to show you in this video how it
0:27actually happens every single day on
0:30every single asset class multiple times
0:32a day, multiple times per session,
0:34trapping out every single strategy,
0:36every type of trader, which means it's
0:38not a conspiracy theory, it is simply
0:39market mechanics. Meaning it is the
0:41entire way that the market moves and
0:43operates, and this is the lifeline of
0:45price movements. By the end of this
0:47video, my goal is for you to understand
0:48how often traps occur, that they are
0:50continuously going on every single day.
0:53Second, I want to show you the main
0:54types of trap that you are likely
0:55falling into, and lastly, I'm going to
0:57give you a new way to learn how to read
1:00price action. Not through supply and
1:01demand, not through market structure,
1:02not through trends, but rather through
1:04traps. Reading price action like you
1:05open up a page of a book and you're
1:07reading a story. It will all be clear,
1:09it will all make sense, be coherent, and
1:11it will be a new language that you are
1:12learning. So, without further ado, let's
1:13jump into price action and walk through
1:15it day by day, candle by candle
1:17together, walking through trap after
1:18trap until we finally understand why 95%
1:21of traders lose. It's because you're
1:22walking into these traps, and if you
1:23want to be in that 5% that doesn't lose
1:25money, then you're going to learn all
1:26about traps today and stop walking into
1:28them blindly.
1:30So, starting off with price action right
1:32here where we are inside of a daily time
1:34frame demand area. So, what we have over
1:36here is a bullish impulse making a
1:38higher high, then we have internal
1:40bearish to make the complex pullback,
1:42and then we have this low in the market
1:44that has led to a push higher, this last
1:46lower high that made the lower low,
1:47bullish push higher, bullish break of
1:49structure, bit of bearish complex price
1:50action down to this area. What is really
1:52going on? Well, put very simply, we have
1:54this bullish demand area right here.
1:56Why? Because this area led to this high
1:58in the market. We all came back to that
1:59demand area, which means we had this
2:01demand area right here that led to this
2:02higher high, then a bearish complex
2:04pullback down into that demand area, a
2:06bullish switch. Why is that bullish?
2:08Because we had this last lower high,
2:09made a lower low, goes on to make a
2:10higher high, and then we came back into
2:12that zone. So, put very simply, we have
2:14a bullish break of structure right here.
2:16This is a characteristic point in the
2:17market where trend shifted. And
2:19therefore, my important objective is if
2:21I came from this low and made this high,
2:23we had a bullish impulse. We came into
2:25that same demand area and we had another
2:27bullish impulse. Then I'm expecting not
2:29only a break of structure of this high
2:30bullish, but I'm expecting this high to
2:32also be taken out eventually because we
2:35are in a bullish market. Meaning a
2:36bullish impulse like so should have a
2:38bullish replication coming from bullish
2:41demand areas. That's the objective of
2:43price action. This is exactly where we
2:44are sitting right now, inside a demand
2:46area coming all the way down to the
2:48extreme, and then we start to have
2:49bullish price action lift. So, what are
2:51going to be the common reads of buyers
2:54in this area? Well, first of all, you're
2:55going to have the smart money trader
2:57who's going to be looking at things from
2:58liquidity. So, I'm going to mark out all
2:59of the smart money zones. So, here we
3:01have it. These are my SMC liquidity
3:03pools and sweeps. So, we have this
3:04build-up of highs, a sweep, and then we
3:07have a break of structure lower. We have
3:08a fair value gap imbalance over here,
3:10order block. Same thing over here,
3:12build-up of liquidity. We have a sweep
3:14and order block formed, and then large
3:16fair value gap imbalance. Same over
3:18here, we have this area that failed. So,
3:20we had a sweep of all of these highs.
3:21So, what happened right here was
3:22actually a smart money trap. Let's get
3:24into this. Why? Because this sweep zone
3:26that led to a bearish break of
3:27structure, we had liquidity over here,
3:29came into that smart money supply zone,
3:31had a bearish reaction, went on to fail,
3:33had a inducement. And now that we have
3:35the equal lows, equal lows of liquidity
3:37here, and equal highs over here with the
3:39smart money sweeps on the screen. Let's
3:41also add now the trendline liquidity.
3:43So, there we have all these red lines as
3:45trendlines. We're having an ascending
3:46trendline over here of liquidity.
3:47Sellers are going to be selling on this
3:49trendline, buyers on this trendline.
3:50We're reaching an apex right here. Over
3:52here we had a seller's trendline. Notice
3:54how that's already taken out. And I want
3:56to now add lastly breakout traders.
3:58Breakouts are when you simply have a
3:59range and then you break out of the
4:01range, comes back to test, and people
4:02look to buy. Such as this where we had a
4:05range high, we had a range low,
4:07consolidation in this area where we had
4:09multiple touches to the high over here
4:11and over here. And we had multiple
4:13touches to the low around here. So, when
4:15we have a range like so, then we see a
4:18breakout when we see price push higher.
4:20Then I know that a bullish breakouts
4:21like so is going to invite in buyers who
4:23see break of structure, already seen
4:25this is a demand area, and they're
4:26looking at bullish high lows and higher
4:28highs. And we know that people are going
4:30to be loading up on buys in such areas
4:32after a break, look for the test, wait
4:34for the continuation. So, I want to add
4:36this into the screen also. And this is
4:38going to be a classic breakout trader
4:40liquidity. I'm going to put breakout so
4:41we know what it's for. So, let's start
4:43to add up all the times a trader was
4:45trapped. So, in this build-up, sweep,
4:47and bearish break of structure, this is
4:49going to invite in sellers on this area.
4:51So, when the price pushes out, those
4:53smart money and supply traders are taken
4:55out. And the last thing I want to note
4:57is we had a bullish break of structure
4:59like so where we had this last lower
5:00high that made a lower low, bullish
5:02break of structure over here, which
5:03means this is all a demand area for
5:05market structure and supply and demand
5:07traders. Why? Because they see this area
5:09as the last lower high that made a lower
5:11low. Therefore, this becomes a bullish
5:13break of structure. Just so we have it
5:14on the screen, we had this last lower
5:16high in red that made the lower low.
5:17Then we had the bullish break of
5:19structure making a higher high. Hence,
5:20this blue box is our demand area. Now,
5:22let's walk through together all the
5:24times a trader was trapped. I'm going to
5:25use an angry emoji so we can see where a
5:28main type of trader has been trapped
5:29out. So, over here we have a build-up,
5:31we have a sweep, we have a bearish break
5:33of structure. So, that leads a classic
5:35supply zone. We have equal highs over
5:37here with the trendline. Smart money
5:38traders are going to be selling over
5:39here. Smart money trapped, smart money
5:41traders got induced. What else do we
5:43have going on at the same time? Well,
5:45these trendline traders that were
5:46looking at this bearish trend line over
5:48this area, looking at this overall
5:50supply zone, like so, looking at this
5:52whole supply area, they saw price come
5:54in, one touch, two touch, three touch,
5:55they're seeing resistance, they're
5:56seeing rejection, they're seeing triple
5:58top, then a bearish trend line, making
6:00lows, lower highs, lower lows, lower
6:02highs, and lower lows. So, this is all a
6:04seller zone. We've got supply traders
6:06out, those are trading resistance, we've
6:08got those taken out. So, we had a lot of
6:09people induced in this area. And then we
6:11have price breaking out bullish. Now,
6:13that's going to invite in buyers from
6:15the breakout, so that when they load up
6:17on this breakout area, they see break,
6:19they wait for the test, they wait for
6:20this area, they get taken out over here.
6:22And now we see price going bearish into
6:24this demand area. We are getting a
6:25support level, we are getting a trend
6:27line, we are getting demand area, a lot
6:29of buyers are going to be waiting, and
6:30also a lot of sellers. So, I want to
6:32play price action on intraday M15, and
6:34start to see more closely what is going
6:36on as we walk through this day's price
6:38action. And we can start to see very
6:39clearly, we are getting some good signs,
6:42where we had a resistance level over
6:44here. That resistance seller was already
6:46taken out. They're angry, why? Because
6:47it was Asia high, equal highs. People
6:50were seeing trend line, they were seeing
6:51resistance level, they were selling on
6:52all these rejections and engulfings. And
6:54then you have price sweep. So, on this
6:56sweep, what happens? When you start to
6:58see bearish, you start to see good
6:59things. We see our sweep, and then we
7:01saw bearish and bearish, so we're
7:02getting a bit of a trend line now. So,
7:03right now we are walking through a
7:04handful of traps in the market. The most
7:06common ones, smart money traders,
7:08breakout traders, trend line traders,
7:09all of these traps can be connected
7:11together to find wonderful opportunities
7:13when you wait for the trap of the day.
7:14So, what I've prepared for you, because
7:15this might be a little bit complicated,
7:17is a more in-depth guide in the link in
7:18the description, absolutely for free for
7:20you to download to get more out of this
7:22video, where it's going to be showing
7:23you not only the traps you're seeing on
7:24screen, but more examples, more case
7:26studies, more explanations, and more
7:29trap types, so that you can master every
7:31single concept that I'm teaching in
7:32every single one of these videos. So,
7:34pause the video very quickly, click the
7:35link in the description, download your
7:36episode companion, it's free for the
7:38rest of your life, and make sure you get
7:39the value that you need from this video,
7:41so you never walk into an unnecessary
7:43trap ever again. Okay, let's get back
7:44into it. So, let's start to zoom in and
7:46better understand what's going on on
7:48this day because now we're starting to
7:49get the smart money trader really
7:51excited because these equal lows coming
7:53into this demand area. I'm going to make
7:55this higher time frame demand area
7:57lighter because we know it's wise there,
7:59but I don't want it to distract us. So,
8:00we have this clear smart money zone and
8:02it's a demand area because it led to a
8:04bullish break. Reminding ourselves why?
8:06Because we had these equal lows sweep
8:08and this led to a bullish break of
8:10structure. It's come back into that
8:11demand now. We've had equal lows and
8:14we've swept it all, which means now this
8:16is where smart money traders are going
8:17to be looking to buy. So, let's see who
8:19is the next victim of a trap. I know
8:21it's very clear and I'm going to show
8:23you in just a second. Aha, price fails
8:25through the whole zone. We start to see
8:28quite a few people angry. Well, we have
8:30the smart money trader over here looking
8:32for the smart money buy zone. Actually
8:34ended up walking into a clear smart
8:35money trap. The trader who was buying in
8:37this demand area was also taken out. The
8:40people who are buying on this ascending
8:41trend line where we had one touch, two
8:43touch, three touch, four touches, they
8:45were taken out. The people buying on
8:46this smart money zone, why? Because we
8:48had equal lows sweep and a bullish
8:50break. Price came into that level, this
8:51blue area. This was also a smart money
8:54trap and therefore we have manipulations
8:56all the way across and then finally we
8:57have a bearish break of structure. So,
8:59then I can finally say, "Oh, we have a
9:00bearish break of structure." Because
9:02we've broken out of our higher time
9:04frame demand area. Remember right here.
9:06Reminding ourselves the higher time
9:07frame has not played out bullish like
9:09this. In fact, we have continued bearish
9:11like so and we are sitting below the
9:13demand area now, which means people are
9:15going to be reading this differently now
9:16because they'll start to think this is a
9:17supply area because we had a bearish
9:20break of structure and we've actually
9:21had this higher low that made a higher
9:24high in the market. Now have a bearish
9:26switch and make a lower low in the
9:27market leading to supply areas people
9:29will start to sell from. That's
9:31potentially one read. We've entered
9:33complicated territory, but we can start
9:34to see with all of these angry emojis
9:36how many traps have already happened
9:38just from trend line support and
9:39resistance, supply and demand, and smart
9:41money traps. Handful of smart money
9:43traps, multiple trend lines, multiple
9:45demand areas all getting voided out,
9:47plus the breakouts trap over here. But,
9:49when we finally break through all of
9:50those lows, maybe things would change,
9:52right? So, let's play forward to the
9:53next day now. Play through our Asia
9:55range. So, now that we've had a break of
9:57structure lower, let's see what happens
9:59next. So, usually what we're going to
10:00see is after a break of structure
10:02through a range like so, we have a red
10:04line. Then, we have the test over here.
10:06We have the break, test, and people are
10:08going to be looking to sell. Classic
10:09case of when you have a range in the
10:11market, you have the range high, you
10:13have the range low. When price breaks
10:15low, people wait for price to test the
10:17range, and then they sell lower. That's
10:20exactly what we're experiencing here.
10:21So, I want to mark out the test high.
10:23Now that we have the breakouts having
10:25the test, we had the break lower, we had
10:26the test, let's play price lower. And we
10:28see we are getting the continuation we
10:30wanted. Those breakout traders are happy
10:32until price continues bearish, comes
10:34back into the range and wicks them out.
10:36So, now the breakout trader has also had
10:38a inducement. This one here being for
10:39the smart money trap that was voided in
10:41this area. The breakout trader has also
10:42been taken out right there. And the
10:44trend line trader that was trading one
10:46touch, two touch, three touches in this
10:48area, also the trend line trader
10:50currently being taken out through that
10:51inducement. So, I'm putting these red
10:53ones now as real inducements. Same over
10:55here, we get price making a low, making
10:58a lower low, making a lower low, and
10:59then we get a bullish switch now. Why is
11:01this a bullish switch? I want to notice
11:03the details, and we see we have lower
11:04high, lower low, lower high, lower low,
11:07and then we switch and make a higher
11:09high. So, we're getting a bullish switch
11:10now, which means I want to read into
11:12this detail right here. I want to start
11:14to understand we had a last minor
11:16inducement. This area right here red
11:18could be the last inducement I needed,
11:20because remember we've taken a higher
11:21time frame zone of liquidity. We've
11:23swept a low of a major demand area. So,
11:27we've had a major inducement down here,
11:29and this could be the catalyst for price
11:30to come and shoot higher. So, I want be
11:32focusing on this area right here as
11:34potentially a major inducement zone as a
11:36pocket of opportunity to use as a
11:38catalyst for price to actually shoot
11:40higher from that after taking the
11:42liquidity of this low. That's what I'm
11:44focusing on. And when I start to see
11:46prices inducing all of these sellers,
11:49that means price is doing something
11:50different to what is expected, and I
11:52continue on. And as price plays, I want
11:54to notice who is in control and where
11:56are the traps being printed. So, now
11:57I've played price to the end of Asia.
11:59Asia closes as we approach Frankfurt
12:01open. And I'm going to mark out once
12:02again, as I do every single day, areas
12:04where I see traps. So, first of all, I
12:06see a clear trend line. What else do I
12:07see? I see this area where we had the
12:09equal highs, the sweep, and the bearish
12:11break of structure lower. This has led
12:13to a nice smart money supply zone. I
12:16already know it's going to be a trap, so
12:17I can mark this out. What else can we
12:18see? We see this trend line was already
12:20taken out, but the thing about trend
12:21line is you have multiple reads. And we
12:23can already see this trend line where we
12:24had one touch over here, second touch,
12:27third and fourth touch. That's taken
12:28out, so I'm going to ignore that one.
12:29That's not clean enough for me. But, I
12:31want to start to mark out where is other
12:32obvious liquidity pools. For example,
12:34right here could be a liquidity pool
12:35with Asia low, where we have a
12:37resistance level. I'm going to play
12:38through the day, play through Frankfurt
12:40open, play through London open to see,
12:42"Okay, we are encouraging the trend line
12:44traders to get into buys, and we are
12:46taking the liquidity of Asia high, like
12:49so, and we are arriving to our supply
12:51area." Why? Because we had a build up of
12:53liquidity, a sweep that led to a break
12:55of structure of a higher time frame
12:57demand area. This is a supply zone. We
12:59have a fair value gap and an order block
13:00right here. So, people are naturally
13:02going to be selling at London window
13:04into the lows, which we see as a bearish
13:06trend. So, I want to see, "Are we going
13:08to satisfy those traders?" We come into
13:10the supply area, we get a bearish
13:11reaction, and we get bearish follow
13:13through. Very good. So, now those
13:14sellers are getting very happy, and
13:16they're thinking, "Perfect. I'm getting
13:17a bearish reaction on a supply level.
13:19This is perfect for me." Those trend
13:21line traders are putting in a bit more
13:23buying, and now I'm going to wait for
13:24the traps. So, we see that trend line is
13:26now broken. We're seeing that trend line
13:28trader is taken out and then we come to
13:31this Asia low support level. So, people
13:33are going to be buying upon that demand
13:34area because it is a support area. Price
13:37gives a bullish reaction, perfect. So,
13:39we've seen those traders have also been
13:41taken out, but we actually broke through
13:43the demand area, that support level ever
13:45so slightly by just a couple of pips,
13:47maybe four or five pips, leading to
13:49another inducement. So, I'm going to
13:50start to drop ATM emojis where I see
13:53lasting inducements, real inducements.
13:55One is right here and another one is
13:57right here. Why am I putting it here?
13:58Because this inducement right here that
14:00we saw, it was a trap of the breakout
14:02trader and the trend line trader. This
14:04inducement served price to go lower, but
14:06it only as a trap because then it was
14:08also itself taken out. So, this was a
14:10facilitator inducement, don't worry
14:11about what that is, but this is not a
14:13long-term inducement. It's just serving
14:15a short-term purpose. Whereas when we
14:17have true intent and control in the
14:18market, this one over here also is a
14:20facilitator inducement. It is to serve
14:22price action to go lower to our
14:24objective. This is also to go
14:25temporarily lower, but it's not the real
14:27control of the market. This major
14:29inducement is real control. This
14:31inducement of the day is real control.
14:32So, we can start to see how every single
14:34move of the day comes after a trap. The
14:36main move of the day is after the trap
14:38of the day. So, if I can see the
14:39build-up of the trap, wait for the trap,
14:42I will always find the move of the day.
14:44But, the most important thing is once
14:45you learn about traps is how to
14:46consolidate it into trading systems and
14:48you're going to be benefiting from these
14:50traps cuz you're going to wait for them
14:51and find the trade of the day every
14:53single time a real inducement forms that
14:55is within one of our playbooks. Most
14:57importantly, inside of our community WWA
14:59Trading, we also have an entire
15:01ecosystem built around these traps and
15:03systems, meaning we are going to be
15:04doing daily live streams before New York
15:06session and before London session to
15:08show you where the trap is going to be.
15:10And multiple times a week, you're going
15:11to have Q&A sessions and you will have a
15:13one-on-one coach every single week for
15:15an entire 6 months so that you can walk
15:17through your journey with multiple
15:19contact points per day. So, if you are
15:20interested in joining our 6-month
15:22experience, I encourage you to click the
15:24link in the description to apply for our
15:25ecosystem. My goal is to work with the
15:27best of the best traders, which is why
15:29we have an application process to
15:30identify who is going to be the best fit
15:32to actually have the transformations
15:34like some of our best traders you can
15:35see on screen which reach a million
15:37dollars in funding, which is what we
15:38specialize upon, and tens of thousands
15:40of dollars in consistent payouts. So,
15:42click the link below to apply for that.
15:44And even if we don't end up working
15:45together, my promise to you is we'll
15:47give you some resources and goodies so
15:49that we leave you better than we found
15:50you. Okay, back into the video. Just
15:52like here we saw after the trap and the
15:54real inducement, a strong bullish move.
15:56After this trap that we're seeing, we
15:58will see a strong bullish move. So,
15:59price comes into the supply area, those
16:02sellers that saw bearish break of
16:03structure because they saw a higher
16:05high, higher low, higher high, bearish
16:07break of structure coming from this
16:09supply zone. This supply zone giving a
16:11bearish reaction, people are going to be
16:13selling in this area, and they're going
16:14to be taken out right here. Now, we're
16:17getting a resistance level, we're
16:18getting equal highs, we're getting more
16:20liquidity in the markets. Are those
16:22traders going to be satisfied? Let's
16:23see. No. Those resistance traders are
16:26taken out, and also the smart money
16:28trader who is trading this sweep and
16:29supply zone is also taken out. So,
16:31notice how the inducement of the day
16:33that took the traps of the day led to
16:35where I put the ATM, leading to the
16:37trade of the day, the move of the day,
16:40taking out all of the sellers that were
16:41confused. Just notice how many angry
16:43emojis we have on the screen. All of
16:45these traders are trapped, and all of
16:47these traders are following the plan,
16:48they're following strategies, they're
16:49following confluences, they're following
16:51common logical sound trading systems you
16:54find online. Yet, they're all constantly
16:56being trapped out, especially when I
16:58zoom out and we see all of the other
17:00traps they've walked into in just a
17:02short duration. Now, let's continue on
17:04for the next day. Going to walk through,
17:06we have Asia range play,
17:07and I want to see exactly what is going
17:09on over here. So, I want to mark out
17:11where is liquidity. We have, for
17:12example, here equal lows. We have over
17:14here a trend line. We have, of course,
17:16the breakout trader who's seen a bullish
17:18break of structure waiting for the test
17:20in this range. They're going to be
17:21loading up on a buy in this area
17:23somewhere. The breakout traders usually
17:25going to be in this area right here.
17:27Let's put it as a demand. And I can see
17:28we have an inducement right here. And
17:30already a few people are angry like this
17:32trend line. We saw a bearish trend line.
17:34That one's angry. Asia high liquidity
17:36also taken. And then also we have the
17:37breakout trader on this level over here
17:39who is buying on that support level.
17:41Like so, we had one touch, two touch,
17:42three touch. The breakout, the support
17:45level taken out also. So already a bit
17:46of chaos and it's not even the start of
17:48London session. What happens as we get
17:50into London session? Well, we're going
17:51to be inviting in a few other traders
17:53now. Cuz some people will be seeing we
17:55have equal highs over here of Asia high
17:57resistance over here. We see the sweep.
18:00As smart money traders with the London
18:01window are going to be loading up on
18:03sells in this area. Why? Because they're
18:05going to be coming into the day
18:06thinking, I have Asia high and equal
18:08highs. I have a sweep of liquidity. I
18:10have bearish price action in London
18:12window. I'm going to sell down to Asia
18:14low. Sell down to this demand area,
18:16let's say. Why? Because we've had a high
18:18in the market, bearish retracement
18:20looking for the bearish continuation
18:22down to this pocket over here before I
18:24continue bullish. That's what they're
18:25going to be thinking and they are
18:26obviously taken out right now also. That
18:28would be more clear on the lower time
18:29frame, but I'm just showing you a bird's
18:31eye view of what's going on. Of that
18:32resistance trader getting taken out, the
18:34smart money trader also getting taken
18:35out right now. And the trend line trader
18:37was already gone. And notice how price
18:39continues bullish now. And meaning the
18:42inducement of the day led to the trade
18:44of the day and the move of the day after
18:46all the other traders were trapped out.
18:48And I can continue on. Remember, I'm
18:50only showing you three or four types of
18:51liquidity. Smart money liquidity, trend
18:53line liquidity, breakout liquidity, and
18:55maybe a bit of market structure
18:57liquidity. Simple four major schools of
18:59thought. Most traders are inside of one
19:01of these groups or a mix of them. And
19:03notice how constantly they're getting
19:04trapped out. Again, you might not walk
19:06into all of these traps. You might
19:07follow some of them. You might miss a
19:09lot of these. And you might might
19:10saying, "I don't trade all these traps."
19:11That's not the point. It's not targeting
19:13you. It's targeting mass mentality, mass
19:15liquidity, common places where there
19:17will be liquidity. Areas where there's
19:19concentration, abnormally large amounts
19:22of stop losses, is where price is going
19:23to hunt and grab it as fuel before it
19:26continues on. But, the key point is the
19:27trap of the day leads to the move of the
19:29day. The trap of the day over here leads
19:30to the move of the day. The trap of the
19:32day leads to the move of the day. Let's
19:33measure it out. After this inducement
19:35right here, we had this strong move.
19:37After this inducement, we had this
19:38strong move. After this inducement, we
19:40had this strong move. And it's not even
19:42the end of the day yet. And we can just
19:43measure it out in terms of pips and say,
19:45"If I caught this at the inducement, and
19:47I traded it for the move, we had about
19:4950 pips." If I did it again for the next
19:51move, we caught it at this inducement
19:52and we trade just the single impulse, 60
19:54pips. If we traded this one, how long
19:56would it be? It would be about 50 pips.
19:58So, on average, we're getting a 50-pip
20:00move in a single day after you are
20:02trading the inducement of the day. So,
20:04if you're getting a 5-pip stop loss,
20:05which is very common, this is my average
20:07stop loss. This is most of my trades are
20:09between 4 and 5 pips. So, if I'm getting
20:11a 5-pip stop loss and a 50-pip move,
20:13that means I can get a 1:10 risk reward
20:15in a single day after trading one
20:17impulse. Doesn't matter if it's with the
20:18trend, doesn't matter about supply and
20:19demand, doesn't matter about context.
20:21It's just finding the trap of the day
20:22and finding a 50-pip move as the trade
20:24of the day. And notice how it is fast.
20:26It is immediate. It doesn't go up into
20:28profit, come back down, hang around at
20:30break even, go up a bit, go down a bit,
20:32and then slowly move towards the target.
20:34It is fast and instant, meaning it's
20:37easy to take profit. It's easy on your
20:39psychology, and it's a lot easier to do
20:40break-even protocols and trade
20:42management because you are trading
20:43tap-and-go scenarios. Let's continue on
20:46now because as the day progresses on, we
20:48see these equal highs taken, the high of
20:50previous day, the liquidity we had at
20:52the previous higher high. And then we
20:54get a bit of a trend line. People are
20:55seeing that we took these highs, we
20:57swept, we had a bit of a bearish trend
20:59line. We're getting equal highs sweep.
21:01So, smart money traders are going to be
21:02in this area. Let's mark it out as a
21:04smart money trap. Why is that
21:05interesting? Because after that smart
21:06money trap, where we have equal highs,
21:08sweep, bearish reaction, bearish break
21:10of structure, we get an inducement
21:12before the real bearish move. So, what
21:14is happening also is we start to see
21:16trend line trend line traders buying in
21:18this area. The breakout trader, of
21:20course, is going to be interested. Why?
21:22Because they've seen a range high,
21:24they've seen the break, they wait for
21:26the test, they look for the bullish
21:27continuation. Their stop losses are
21:29going to be right in this area. The
21:31breakout trader is going to be
21:32liquidated right here. So, when I add on
21:33the emojis, we took out the smart money
21:36traders liquidity right here. The trend
21:37line traders liquidity is waiting. We
21:39haven't taken it yet. And the breakout
21:40trader has already been taken out with
21:42this little move over here. Let's
21:43continue on.
21:44Cuz slowly but surely that trend line
21:46trader has also been taken out. And I
21:48preemptively put it there. So, where is
21:50price going to be headed next? Let's
21:51play through Asia and start to
21:53understand the next day's traps, waiting
21:55for the move of the day and the trap of
21:56the day. Okay, I can start to see we
21:58have a secondary trend line forming like
22:00so. I can start to see we have Asia high
22:02liquidity being taken. And I'm wondering
22:04what's going to happen at this sweep
22:05area right here. Why am I curious on
22:07this area? It's because I've seen price
22:09come into the high of the market, give a
22:11bearish lower high, lower low. So, if
22:14I've seen bearish reactions, I might see
22:16sellers getting involved in this area
22:17because they'll say we had equal highs,
22:19sweep zone, bearish reaction. So, I want
22:21to see what the real intention of the
22:23market is through traps. Price comes
22:25into that supply area, it's at London
22:26open on the minute, and people are going
22:27to say Asia high sweep, supply zone,
22:30inducement, order block, fair value gap,
22:32all of these things. Sellers loading up.
22:34Let's see what happens. Price gives them
22:36the reaction, sellers are in. We now
22:38come into the trend line. So, notice how
22:40we are getting the sellers excited who
22:42are smart money traders and supply zone
22:44traders. And we're getting the trend
22:45line traders excited. But just to let
22:46you know, there's going to be liquidity
22:47and angry people above and below. Let's
22:50see who gets trapped first. So, first of
22:52all, we take out those sellers because
22:54that was actually a smart money trap.
22:55The sellers on this area that were
22:56trying to get in on the secondary
22:58attempt, if they didn't get in on the
22:59first one, they were also taken out
23:01because maybe they saw a break of
23:03structure confirmation, waiting for this
23:04rejection, are taken out. And now I want
23:06to see what else is going to happen in
23:08New York Eastern window. So, as of now,
23:09this trend line is intact. So, let's
23:11remove that, because at some point that
23:12will also go. Next day is Asia range.
23:14Let's let it play.
23:17This one is already jumping the gun
23:18right away, where we have this equal
23:20lows liquidity, Asia low liquidity. We
23:22grab the lows, and we start to have a
23:24sweep. That sweep is already taken out,
23:26because it was a smart money trap,
23:27classic. So, a smart money sweep failing
23:30over here. Now that we've had a nice
23:32manipulation of a smart money trap, I'm
23:33curious to see where price is going to
23:35head. First, we need to grab a bit more
23:37liquidity by generating a trend line,
23:39and price maybe needs to come back into
23:40this demand area, like so. Why is this
23:42interesting? Because this area, this was
23:44a ceiling in price. We had the last
23:45pullback before the break of structure.
23:47So, we had a breakout, and then price is
23:49coming back to test that demand area.
23:51Let's see what goes on next in that
23:53demand area. Price gives bullish
23:54confirmations, we take out the trend
23:56line now, and we have a violent move
23:58bullish. Why? Because we grabbed
24:00sufficient liquidity. Whose liquidity do
24:02we grab? We grab the liquidity of this
24:04support area right here. We grab the
24:06liquidity of the trend line sellers over
24:07here, and we grab the liquidity of the
24:09smart money traders who are buying on
24:10this demand area, who saw equal lows
24:12sweep, bullish breakout into buys in
24:14this demand area, went on to fail. We
24:16had a nice liquidity event, meaning we
24:17found the trap of the day, and leading
24:19to the move of the day, which was very
24:22fast and aggressive, leading to, as
24:24always, on average, if you get into the
24:26trade of the day through the inducement
24:27of the day, you are likely to catch a 50
24:29pip move, which you can see it right
24:30here. Every single day, like clockwork,
24:32trap of the day, trade of the day, after
24:34the inducement of the day. Playing
24:36through the next day very quickly, what
24:37do you think is going to happen over
24:38here? First of all, we get this Asia low
24:40liquidity. Why is this important?
24:42Because we also had a break, meaning we
24:43have retracement into test. We get an
24:45inducement of breakout traders, too.
24:47Also, naturally, we develop a nice
24:48bearish trend line, and therefore, we
24:50start to see, as we start to continue
24:52bullish, price first needs to grab
24:54liquidity of smart money traders,
24:56because those people are waiting for the
24:57sweep. And just like we had the day
24:59prior, we wait for Asia low sweep. As
25:01such, they wait for a bullish break of
25:02structure and you get a smart money
25:04trap. Literally the same every single
25:05time. Build up of liquidity, sweep
25:07lower, break of structure, comes into
25:09the demand area, gives a reaction,
25:11fails, then the real move. Again, equal
25:13lows, we get a sweep, we get a break of
25:15structure, comes into the demand area,
25:17gives a bit of bullish reaction, sweep
25:19meaning real inducement happens before
25:21the real move happens. So, once again,
25:22just like yesterday, we waited for the
25:24trap of the day we found the inducement
25:26of the day and the inducement of the day
25:27led to the trade of the day. And when I
25:29measure it out, as always, the trade of
25:31the day, if you got in at the
25:31inducement, leads to a nice 50-pip move.
25:34No retracements, no hanging around the
25:35entry, tap and go, easy and effortless,
25:38all the while grabbing the trend line
25:40liquidity. So, let's add in our emojis
25:41now. The breakout trader and the
25:43supports trader angry over here, the
25:45trend line trader angry over there, the
25:47smart money trader angry over here. And
25:49by the way, those sellers that are
25:50trading market structure also left
25:51confused cuz we have all of this
25:53liquidity of yesterday, these equal
25:55highs. Then you get the sweep over here,
25:57so people are going to be selling on
25:58that sweep. And why are they going to be
26:00selling? Because after this equal highs
26:02and sweep, you see bearish lower high,
26:05lower low, lower high, lower low,
26:07bearish breaks of structure. So, we're
26:08seeing one leg bearish, two leg bearish,
26:10and three leg bearish. So, these are
26:12going to lead to supply zones and people
26:14are going to be selling in these areas.
26:16So, let's mark those out as suppliers,
26:17especially when you start to see some of
26:19these supply areas are liquidity
26:21pool-related inducements, like this one,
26:24which was a sweep of the liquidity over
26:25here. And like this one, which was a
26:27sweep of the liquidity right here. All
26:29of these leading to areas that failed,
26:32meaning smart money traps. So, when I
26:34load up the traps, all of this trend
26:36line trader, supply zone trader, smart
26:38money trap trader failing over here and
26:40failing over here, meaning the trade of
26:42the day and the inducement of the day
26:44were once again connected after all the
26:45liquidity was engineered and the traps
26:47were taken. So, when we look back at
26:49just a few days of price action, or
26:51let's say about a week or two of price
26:53action. Notice how many angry emojis
26:55there are, how many traps there are.
26:56When you notice the areas that we need
26:58to focus on, which is where is the
27:00liquidity? After the inducement of the
27:02day, you have the move of the day.
27:03Inducement of the day, move of the day.
27:04Let's mark these out as we did.
27:06Inducement of the day leading to the
27:07move of the day. Inducement of the day
27:09leading to the move of the day.
27:10Inducement of the day leading to the
27:12move of the day. Inducement of the day
27:13leading to a big move for this day, all
27:16the way up to this area. The next day,
27:19we waited for the inducement of the day
27:20to get this large move of the day. And
27:22same again, we wait for the inducement
27:24of the day to get to the move of the
27:26day. We look back every single time it's
27:28around 50 pips. Every single time we
27:30trap out smart money traders many, many
27:32times a day. We trap out trend line
27:33traders, breakout traders, supply and
27:35demand traders. Everyone gets
27:36manipulated every single day, and this
27:38is just one time frame on one asset
27:39class. The moment I show you M1, you'll
27:41be seeing it all the time on M1 also.
27:43Even when you go to a higher time frame
27:44and you go on M15, you'll see it
27:46constantly, too. Like here. We see this
27:49sweep zone, equal highs, sweep, bearish
27:51break of structure. Price comes to this
27:53zone over here, gives a bearish reaction
27:55before inducing them out. So, on every
27:57time frame, you'll be seeing multiple
27:59traps. On every asset class, every
28:00single day. Smart money traps, trend
28:02line traps, support and resistance,
28:03market structure, breakout, whatever
28:04strategy you're doing, you will be
28:05trapped unless you are trading market
28:08traps. And the moment you see it, you
28:09cannot unsee it, and you start to read
28:11price action like a book. But you don't
28:12care about a top-down analysis or a
28:14trend analysis. You care about a trap
28:16analysis. Now that you have the
28:17foundations to read price action, you
28:19need to learn how to convert it into a
28:21trading system, which is the next step.
28:22But most importantly, you have to
28:24remember that a restricted trader is a
28:26profitable trader.

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