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LIQUIDITY Part 2 — Transcript

by Techriz💯📈 · 8,305 words · 1,325 segments · language en · Watch on YouTube

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0:11All right. So,
0:13um
0:15there's a breaker structure, right? And
0:17we know we're going to continue sales.
0:18That's literally a very clean order
0:20block
0:21that is augmented with a fair value gap.
0:23So, we mark from the fair value gap to
0:25the highest points.
0:26Although you cannot you cannot enter a
0:27trade like this cuz this is a daily fair
0:29value This is a daily POI. So, you can't
0:32literally enter this kind of trade cuz
0:33your your your win is just going to be a
0:35very small a very small thing.
0:38The place that would be best to target
0:40is because this is a drawn liquidity
0:41here.
0:42And although there's drawn liquidity,
0:45this hidden block has also been
0:46mitigated. So, the next place price may
0:48bounce from this FVG. So, your target
0:50should be anywhere before this FVG. Cuz
0:52if price comes in contact with here, it
0:53can't create a new bounce. So, you're
0:55not looking for sales, right? But now
0:57you know we have a breaker structure and
0:58price will want to head to the POI. So,
1:00you could like find counter buys. Now,
1:03this is what we call counter trend
1:04trade. You know the trend is sell, but
1:06yet you're looking for a buy. Now,
1:07you're looking for that buy Your buy is
1:09going to be probably stopped around
1:10here,
1:11right? Your buy will probably stop
1:12around this place.
1:14So, that's before you get to the fair
1:15value gap there,
1:17you're already out of your trade with a
1:18win.
1:19So, now you've known the trend, you can
1:22go on the H4 time frame
1:24to look for an entry.
1:27All right?
1:28So, on the H4 time frame, there's
1:30literally um a breaker structure.
1:33There's first a sweep.
1:36There's first a sweep.
1:38Right? I can see it rejected back with
1:40the with the wick. It didn't close with
1:42a body. It just dropped and rejected
1:44back with the wick. And there is a break
1:47a body break here.
1:50Right? And this is actually also
1:52reacting from here. There's a order
1:54block that's pushing down. But that's on
1:56still, we have also
1:59an engineer liquidity zone, which is
2:00which is which is what I'm going to
2:01teach today. Engineer liquidity is
2:03simply when price doesn't have an
2:04inducement before it. The move that
2:06comes down to the POI first is going to
2:08be used as
2:09they're going to be induced, right? So,
2:12price will induce it coming to this
2:13order block and then buy. But still,
2:16still this particular order this
2:18particular trade is going to be a low RR
2:20trade cuz if I mark out this as my order
2:22block,
2:23price has mitigated it. And I can then
2:25wait to see how price closes today. Now,
2:27I can start going down to like M15 to
2:30look for buy continuations buy
2:32confirmations to buy to this high.
2:34So, if I go down to like let's say 30
2:36minutes,
2:38um
2:40Let me turn on the session indicator.
2:43Okay, we we've basically closed for the
2:45day.
2:47So, we basically So, the next day we're
2:49going to continue, but then this on the
2:5015 minutes,
2:52let's see what's happening.
2:55Okay.
2:56So, I can't judge yet. If I'm going to
2:58refine this further, I want price to at
3:00least come back into this area
3:02if I'm able to buy. In fact, some some
3:05persons might even set limits for
3:08here,
3:09right?
3:10This was this place looks like this this
3:12looks like an inducement inducing this
3:14particular area of value here. So,
3:16basically I set limit here, but I will
3:18not advise setting limits at all. Even
3:21if you're going to set limits, but just
3:22not to miss the trade can set from here,
3:24right? Then anything from here you can
3:27buy up until this high. But you're going
3:29to get like let's say 4R 5R whatever.
3:31But we'll see first.
3:32>> This is going to be 5R.
3:34>> Okay, it's 5R. Mhm. 5R is fine now. It's
3:37okay for me.
3:385R is fine. If it's up to 5R, then it's
3:40okay. Our stop loss is below this week.
3:43Stop loss is below this week and you're
3:45good.
3:49And you're good. If you want to get
3:50higher RR, so if you want to do 20, you
3:52could still wait for the the the decent
3:55lower timeframe confirmation just like
3:57I've talked on that YouTube video.
3:59But I think this is going to actually be
4:00a snipe, this one. If price can
4:02literally come below this low,
4:04it's going to snipe here and then start
4:05pumping.
4:07But let's see how it goes, yeah. It
4:09looks interesting.
4:10Not going to lie. It even has a another
4:12break safe here above here.
4:15Has another break above here.
4:17Which is serving as a buy confirmation.
4:20So, it looks good.
4:22And you can see that after this break
4:23happened, can you guys see that after
4:24this break happened, now we are supposed
4:25to buy? But now, can you see that price
4:27gave like a failure swing here?
4:29And this failure swing is not is not
4:31doing anything but trying to push price
4:32down back. Right? It's trying to push
4:34price down back so price can get to the
4:36POI. So, anybody trading this
4:39is just counter trade counter trading,
4:40right? You're trading against the trend.
4:44That's what you call counter trend
4:45counter trend trading is. You're trading
4:47against the trend. You're trading the
4:48retracements. You can call it trading
4:49retracements. Um but pro trend trading
4:52is like you're trading the continuations
4:54of price.
4:55And that one is actually the easiest and
4:56the most profitable. Counter trend
4:59trading, you can you also need to be
5:01very aggressive because the market will
5:02not give you like um opportunity to
5:04start um dancing around and all that
5:06because look at after this break of
5:08structure happened here, after this
5:09change of character happened here, there
5:10was no confirmation. Price just
5:12aggressively went back to the entry.
5:15This change of character happened here.
5:17Price just went back to this
5:19just swept this high as an inducement,
5:21came back to this entry and dumped. No
5:24confirmation, no nothing, nothing.
5:27Although this can serve as a
5:28confirmation, but then you for you
5:30before you see a body break here, you're
5:31literally talking about going down to
5:33like M3 to see if there was a body here.
5:36Which I may or may not do, but then this
5:38still looks clean, though.
5:39If you're going to If you're going to
5:40take counter trend trades, just make
5:42sure that you also have like a
5:44justifiable supply pushing price down.
5:48And this one is justifiable because if
5:50you check it on the higher time frame,
5:52it's actually um
5:54it's actually a very good supply.
5:56>> Uh so sorry tech. Yeah. The the sale
6:00currently, is that not the trend?
6:03>> The sale is not
6:04>> Yeah, cuz like the overall trend is is
6:06downtrend.
6:08>> That's what I wanted to ask you cuz you
6:09said it's countertrend.
6:11>> Yes, now for the time frame we are
6:12looking at now, it's a countertrend,
6:14right?
6:15Because now on the time frame, remember
6:17that we have like a reference point and
6:18the reference point is to get to this
6:20place before we resume the mean major
6:22trend. But for now, this minor trend we
6:24are looking at, well, remember our
6:26intention is to buy, right? For this
6:29minor trend we are looking at, we have a
6:30shift, we have a break. This particular
6:32move that's happening here is a
6:33countertrend to what we are
6:36trading or to what we are expecting. Do
6:39you get? So,
6:40um
6:41whatever happens here is a countertrend
6:43until
6:45price starts buying back up. Now, when
6:46price buys back up and then get to this
6:48block and then gives you your
6:51confirmation, then you're now pro-trend
6:52trading because you're now trading in
6:55alliance with what the daily time frame
6:56is showing you, right? But if you're
6:58taking if you're looking at it from an
6:59angle of like the H4, you're still
7:02countertrade countertrading because
7:03obviously you're buying, right? From the
7:06from the view of the H4, you're
7:08countertrading because you're buying,
7:10right? So, but yeah, everything depends
7:12on the time frame you're currently at
7:14and what you're intending to do.
7:16So, you need to be able to give um your
7:19trades a definition and a meaning.
7:22So, um price will buy.
7:24Very good sites. Price will buy up here
7:27then drop.
7:30>> So, eyes on AUDCAD now.
7:32>> I don't even like the passive cuz you
7:34know this pair depends on USDCAD.
7:37Conjugate pairs depend on the behavior
7:40of the other pairs,
7:41right?
7:42Conjugate pairs depend on the behavior
7:44of other pairs. In fact, GBP CAD, after
7:46a very, very long time, it just decided
7:48to target today.
7:50And see what it's doing. See what this
7:51stupid thing is doing.
7:53Because GU is too bearish.
7:56So, you can see this trade was a good
7:57trade I would have placed and I find but
7:59then because GU is up or because
8:01GU is bearish, this one is just going to
8:02founder.
8:04It's not going to survive.
8:06Now, see this one. Others other JPYs are
8:09buying but because GU is basically
8:11selling, this one too will not be able
8:13to survive it. So, like literally these
8:15pairs just depend on their
8:18main pair before they can actually um
8:21move.
8:22>> This looks good, no?
8:24>> Although yes, it looks good as another
8:25block is coming for.
8:27And it's going to continue to buy to
8:28this highs. It's going to do something
8:29like this.
8:33And go up.
8:35Cuz everything here hasn't mitigated.
8:36Everything here hasn't mitigated.
8:38Everything here hasn't mitigated.
8:41Every thing hasn't mitigated.
8:43So, if he loses this last one here,
8:46it would never buy again.
8:49It looks good. It looks good.
8:53Anyways, this is the market review
8:54class.
8:55Let's start. Um
8:57Today, we'll be talking about
8:59um inducements and
9:03engineer liquidity. And it's not
9:05something that is
9:06difficult at all. Right?
9:09It's not something that is difficult at
9:10all. So,
9:11um first, inducement, I would want you
9:12to know this.
9:13If you're going to basically trade, if
9:15you're going to basically trade without
9:16problems, right? You need to understand
9:19one thing. Price will most likely take
9:22out valid buys or will take out valid
9:25POYs
9:27to trigger valid POYs. How do I explain
9:31it? Like, price will take out valid POYs
9:34to trigger valid POYs. Just have this at
9:36the back of your mind. You can see POI
9:38all beautiful and all, and you can see
9:40one just right beneath it. Trust me,
9:42that one above is the inducement for the
9:44one below.
9:46And that's how you should be thinking,
9:47right? Because look at this Look at what
9:49I'm seeing here. This is a This is a POI
9:52here now.
9:53There's a POI here. So, this one is very
9:55valid because this one doesn't have
9:56anything. But right below it, there's
9:57also a POI here.
9:59Price may likely You may look You may
10:00see this one and say, "Oh, this is the
10:01inducement of this one. Price will just
10:03come here and bounce and all that."
10:05Price may likely use this one you think
10:06is very very clean as the what?
10:09As the inducement. So, but there are
10:11also some inducements that are very
10:13clear. Right? So, I tell my students
10:14this, if should in case you see
10:17something like this where
10:19um
10:19you have this We have this order block.
10:22You have another order block.
10:24And then you have the break. So, the
10:26break happened here. So, you have a
10:28valid order block here, one. You have a
10:30valid order block here, one.
10:32And then you have like an inducement
10:34here, right? This kind of trades where
10:36Okay, you know that this one is an
10:37inducement and this is a valid block.
10:38This is a valid block. Most times I just
10:40advise, don't even really take that type
10:43of trade without waiting for a
10:46confirmation, right? Those kind of
10:47trades, don't take them without
10:48confirmation. But then if you have a
10:50trade like this where you have after a
10:52break then you have, let's say
10:55um then you have something like this
10:57where
10:58this is a break and then this is a valid
11:00low.
11:01And then this is also another valid low.
11:02Now, there are only just two valid lows,
11:04and you do know that price would
11:05obviously take out the one to favor the
11:07other, right? And that's what we call a
11:09a smart money trap. Because these things
11:11actually look like valid POIs, but yet
11:14they are inducements. Price would always
11:15take out one to favor the other. So,
11:17these kind of trades
11:19you can take them with limit orders, and
11:21you would have no problems. But you see
11:22these ones where you have one valid, you
11:25have one another valid, and then you
11:26have um these ones to be like an
11:28inducement because probably you just saw
11:29Okay, this one was mitigated before the
11:31move. Uh because you know, any POI that
11:33is mitigated is invalid. Right? That's
11:36why mitigation is literally the the next
11:38class after this one. Any POI that is
11:39mitigated, any POI price comes into in
11:42the past is literally not usable. It is
11:45like an inducement. Right? So, these
11:48cases where you have two POIs, because
11:50this is like one of the things that
11:51actually haunts traders the most. When
11:53you have legs that have multiple POIs
11:55that are valid, you're just so confused
11:57on which one you should pick. Those kind
11:59of trades there are confirmations you
12:01can actually use to play them. Right
12:02now, I do not have any limit on GUI.
12:05Valid POI,
12:07valid POI, another valid POI. What will
12:10I do? Which one would I pick?
12:12Right? And so, that's where you start
12:14seeing things like, okay, using the
12:15Fibonacci tool to still um ma- um kind
12:18of like mark down, okay, where should be
12:20your area of interest. Using um
12:22confirmations like um turtle soups. When
12:25price gets to when price digs into the
12:27um
12:27POI, sweeps, and then the next candle.
12:29You know, all of those things are within
12:30limits. Right? There are certain certain
12:32confirmations you now use to justify
12:34which POI should now be your preference
12:36because
12:37it can be very confusing.
12:39It can be very confusing. There is no
12:42handbook to completely understand what
12:45inducements are.
12:46But I'm going to draw for you the two
12:48inducement models that are very very
12:49high high um
12:52high precision entry models for
12:54inducements. Now, an inducement
12:57is literally a low before
13:00or after a valid low. For for buys, an
13:03inducement is what is what I mean. An
13:05inducement is a low.
13:08So, we have this low. Is a low bef-
13:10after It's a low after
13:12there was a valid low. So, we have this
13:13valid low. And then we have another low
13:15again after it, right? So, an inducement
13:18is always a low
13:20after a valid low. And this inducement
13:22is there because price we need to what?
13:27Create scenarios where people would
13:29think, "Okay, these levels are valid."
13:31And then they will go and set their
13:32orders there.
13:33So, that it can grab enough liquidity
13:35because without liquidity we cannot
13:37move.
13:38And this is why I told you guys one of
13:39my rules in trading is that I do not
13:42take trades. I don't take this kind of
13:43trades where you have move, no form of
13:46liquidity, then you have one order
13:47block. I cannot even try it cuz two
13:49things can happen. Either price
13:51engineers a liquidity before it gets
13:53there
13:54uh something like this or
13:58Okay.
14:00Either price engineers a liquidity
14:01before it gets there or price sweeps the
14:03entire loop. Price it just literally
14:05just takes everybody out and come back
14:07up. Right? This is what I avoid and you
14:10should avoid.
14:12POYs without inducements.
14:14All right. So, these are the two of
14:15them.
14:17These are the two entry models that
14:19inducements follow.
14:23All right. So, the first one is this.
14:25Now, you have a a leg, then you have a
14:27break of structure.
14:29Then you have this leg. Now, price will
14:32do something like this
14:34where price would
14:36create a kind of a mini loop inside of
14:39the range. Remember, it's not broken.
14:41Price will create a mini loop inside of
14:42the range and then break.
14:44When price does something like this,
14:46please do not even if yes, this place
14:49you can justify it and if you can
14:50justify it at the barest minimum, please
14:52do not place your orders on this place.
14:55Never try it.
14:57Never place your orders on this place.
15:00Yes, you can see some some persons doing
15:02that, but do not do it. Even if you must
15:04do it, you must make sure you must do it
15:05you make sure you do it like with the
15:07most confirmations in the entire world.
15:08Cuz I don't even know what you do to
15:10justify that because
15:13Let me do this one.
15:15Because price will definitely what? Take
15:19out
15:20Price will definitely take out this low
15:22to come into this order block. So, this
15:25is the first and foremost the inducement
15:28principle, right? And then, this is the
15:31first inducement principle, so draw it
15:32down. You're going to see often. Now,
15:34another one is this.
15:39Another one is this. Now, we have a
15:40break.
15:42A break of structure. And then, we have
15:44price do something like this.
15:48Right? Where we have like um the EPA
15:50type two. Then, we have another break,
15:52right? Majority of the time, price would
15:55use this place as an inducement, but
15:57then any valid POI you can find from
15:58here can be your entry, right? Any valid
16:01POI you can find from there can be your
16:02entry, but never think of entering this
16:03kind of trades. This type of trades lack
16:05confirmation. Even if price is going to
16:06use here as an entry, like I told you
16:08guys during the EPA type two class,
16:09don't buy from there. Don't join them.
16:11Wait till price has bought from there
16:13and broken even ahead before you can
16:15then safely start buying with them.
16:17Other than that, price is going to
16:18actually use this low as an inducement
16:22and come into any POI here, right? Any
16:25POI there. Now, the last one is this.
16:28You have a break.
16:30The one I just showed you guys. Then,
16:32you have this move.
16:34We have this.
16:35Then, we have this again.
16:37Right? This is an inducement. This one
16:41is also an inducement. But, if you
16:44should take trades from this one or or
16:48if you should consider this one here. If
16:50you should consider this one, you must
16:51make sure
16:53beyond beyond reasonable doubt that this
16:56particular low has been mitigated. That
16:58is this particular low here has been
17:00mitigated. As long as this low has not
17:02been mitigated,
17:04don't take your entries from any of
17:05them, too. Because one day one day,
17:06price is going to come back and
17:08literally run everybody out, take that
17:10last low, and then pump.
17:12Right? So, these are the three
17:14inducement principles. But then, how do
17:16you know a valid inducement?
17:18How do you know a valid inducement?
17:19Because there are inducements that are
17:21that are
17:22that I do not consider, right? And there
17:25are inducements I consider. Now, a valid
17:26inducement is a is a low that has taken
17:30out the high that created it.
17:32But that I simply mean we have this,
17:34right? We have our break.
17:36Then when we are having our next move
17:38up,
17:39we have a low. Remember, this is the
17:41high that created it.
17:42A valid A valid inducement will take out
17:44the high that created it
17:46first, right? Many a times
17:49the we may not even break structure, but
17:52a valid inducement can take out the high
17:54that created it, and then price will
17:55come down back,
17:56take orders,
17:58before we now have the push up. You
17:59know, something like this can happen.
18:01You've not had any break,
18:03but price, in as much as price has taken
18:05out this level, has broken above the
18:08level, this inducement is valid. And if
18:10price ever comes down back, if this POI
18:13is not mitigated, take your orders from
18:15there and then ride to this high.
18:17Right? Many a times it will appear like
18:19this because many persons will not take
18:21this trade. Many persons will be waiting
18:22for price to break above first before
18:24they take it.
18:25And if price breaks above first, no
18:26problem. You will still be able to catch
18:27a new trade. But I'm telling to you I'm
18:29putting it to you now, if price is
18:31inside the leg and creates a low and
18:34takes out the high that created it, that
18:35broke above it, and then literally
18:38meets, let's say a pressure point inside
18:39here, and price start reversing back,
18:41your next entry is going to be this
18:43unmitigated low
18:45before this inducement. So, this place
18:46will serve as an inducement, and price
18:48will not
18:49buy.
18:51Right? Price will buy.
18:53So, that's what a valid inducement is.
18:55So, a valid inducement must take out the
18:57high that created it. So, if I'm saying
19:00I have um my low, I have this
19:03inducement. This inducement here,
19:06right? Must take out this high that
19:09created it
19:10before I can consider it a valid
19:11inducement. If it doesn't take out this
19:13high that created it and does something
19:14like this,
19:16though it may still play out, but then
19:18you're going to just basically be
19:20risking your money because it's no
19:23longer valid anymore cuz price can
19:25literally just run through the whole
19:27thing, right? You're going to just
19:28basically can just run through the whole
19:30thing and then it becomes what a failure
19:31swing. So, in as much as it has not
19:33broken this high, please um
19:35be very cautious. That's all, just take
19:37caution. But if it has broken this high,
19:39many a times price will bounce on the
19:41unmitigated POI and pump. I remember,
19:44like I'll always tell you, structure
19:45must align with whatever you're doing.
19:47If you're doing anything without
19:48structure, you're wasting your time. So,
19:50if actually you're supposed to be
19:51selling
19:53and you're busy buying and something
19:55like this is printing, you're dead
19:56already because if it prints this thing,
19:58if it prints this um valid this thing
20:00that you think it made it valid, you
20:01don't know that this is just its
20:02inducement to enter a sell POI
20:05and drop and you're busy buying. So,
20:07everything every literally everything
20:09falls on structure. So, you must have
20:11market structure at your fingertips for
20:13you to be able to first understand the
20:14market direction, then next POI. I told
20:16you, first market direction, next POI.
20:19It's as simple as that. Trading is not
20:20more than this.
20:21First market direction, next POI. So,
20:25that's what a valid inducement is.
20:26Remember, it must take out the high that
20:28created it.
20:29And if we are actually bullish, price
20:32Hm, my God.
20:34>> This one. Tech, is is is is 4 hour the
20:38best time
20:40I'm looking for a
20:41a market structure.
20:42>> I do prefer 4 hours. Yes, so yes, you
20:44can say 4 hours. I do prefer it. It's
20:47the better one.
20:48>> All right. But I I I actually asked you
20:51about 1 hour. You said people do take
20:53their
20:54>> Yes, you know what
20:55You know what I will say people do when
20:56it's not me. But if you ask me, Tech,
20:58what do you use? I'll tell you 4 hours.
21:00So, people do is not me, it's not my
21:02problem.
21:06If you decide to do, it's also your
21:07problem. But tech race, I use 4 hours as
21:10my market structure.
21:12So, yeah.
21:14Um so, please understand that. That's
21:16what's a valid inducement is. Must take
21:18out the high. But you must be doing the
21:19correct thing first for you to be able
21:20to come out to the win. So, that is
21:22about inducements. Inducements also,
21:25many a times, I'm going to share with
21:27you. But the final class on inducement
21:28is going to come when we learn DUL
21:29because there's literally what you call
21:31a draw on liquidity. A single candle can
21:34be an inducement, but you do not know
21:36because that single candle is an
21:39What's What's what is that? It's an
21:40undisturbed draw on liquidity. That's
21:43how I used to teach my my psychology
21:45last year in stats. An undisturbed draw
21:47on liquidity. So, many a times, a valid
21:50inducement can also be an undisturbed
21:51draw on liquidity. Like now, this low
21:53Why I'm targeting this low is because
21:54this low is an undisturbed draw on
21:56liquidity.
21:57And price will definitely come out to
21:58take that low. Right? So, there are so
22:01many things that you would also learn
22:03along the way, right? So, but just have
22:05that in mind that price is going to take
22:06out a valid low to favor the next low
22:09below it just to be able to move in the
22:11right direction.
22:13Do not take trades without inducements,
22:15please. If you must take trades without
22:17inducement, I think on good.
22:19Good will literally engineer an
22:20inducement before it. And this is where
22:22we're going to go into next, engineered
22:23liquidity, right? An engineered
22:26liquidity is the market's form of
22:29of of People call it manipulation. It's
22:32the market's form of gathering its own
22:33liquidity when there is none.
22:35Because if you've noticed good
22:37movements, you will not see inducements.
22:38Who is with me? If you've been seeing
22:40good, you will not see inducements at
22:42all. Where good will literally react
22:44from. So, its way of actually generating
22:47inducement is by creating its own. And
22:49it is by actually what? Using those who
22:52actually get in early. But that's what I
22:54mean this.
22:55So, you can see an order. Let's say you
22:57have a breaker structure on good. Or
22:59let's say good prints out. This is one
23:00of the best good tree model we have this
23:03inverted head and shoulder.
23:05Sorry for using that word. You guys may
23:06not know what it is, but then you have a
23:08break above here. Hmm?
23:10And this is a shoulder. This is the
23:12head. This is the other shoulder. Now,
23:14the place to enter is somewhere here.
23:16Right? Now, gold would not leave any
23:19inducement at all here.
23:21Zero inducements at all. And then
23:24somehow somehow price will come and buy.
23:26But before price buy, you're going to
23:28see something like this.
23:34This is what I call an engineered
23:35liquidity. Right? This is what I call an
23:38engineered liquidity. That first move
23:40that looks like it is going to buy
23:42is what we call an engineered liquidity.
23:44Right? So, this is why you don't always
23:45like hurrying to gold. You wait. Right?
23:48So, because when it gets very close to
23:49the POI, if there is no inducement
23:52before that buy, in fact, if there is no
23:54inducement on that POI,
23:56and price has bounced from there before,
23:59trust me, most likely you're better off
24:01using the low as your entry than
24:03actually probably looking for one
24:06useless kind confirmation cuz you're
24:08going to get stopped out. Cuz literally
24:10that move is basically it is engineering
24:12its own liquidity. And engineered
24:14liquidity only works when price actually
24:16has no form of inducements before it.
24:20Any other If price does this thing when
24:22there is also an inducement, then I I I
24:23cannot call it an engineered liquidity
24:25because there's no reason engineering
24:26liquidity. It may just be price doing
24:28whatever it wants to do. But have it at
24:30the back of your mind. When there is no
24:31inducement in the POI, price is going to
24:33engineer its liquidity. I showed you
24:35guys that one that happened on UJ. Very
24:37clean, very clear. Price will first tap,
24:39bounce. Many persons will join, "Oh, let
24:41me enter market price. Let me enter
24:43market price." That's a valid POI.
24:45What's a valid POI without an
24:47inducement? A POI is not even valid
24:49without an inducement. So, hope you
24:50know. Except maybe you're able to just
24:52patiently wait for If you know, "Okay,
24:54yes, that POI is the last resort." and
24:56you're to patiently wait for price to
24:58literally um you know, take out
25:01engineering liquidity thing. Yes, it can
25:02be valid. It happened on USD/JPY. A POI
25:05cannot be valid to you
25:07as a trader without an inducement.
25:08Something must be close to that POI that
25:10is valid. A low must be close to it.
25:13Something that will be able to
25:14um
25:15that you're going to be saying cuz you
25:17know, a buy a market maker buy model is
25:18not complete without three things. Your
25:20first a break of structure.
25:22Second, something that looks like a
25:23sweep.
25:26So, let's say we have this something.
25:28First, you have this sweep. Let's say a
25:30sweep, and price rejects back up. Then
25:32you have a break of structure. Then
25:36So, you have something like this.
25:38So, you have a break of structure.
25:39First,
25:41something like a liquidity sweep.
25:42Although, I don't really recommend
25:43liquidity because you're not going to
25:44see often. It's not most price to um
25:46sweep liquidity. Then you have your
25:48order block third. Then confirmation is
25:50a break of structure. Then you have the
25:51low. One,
25:53two,
25:54three.
25:56Perfect buy
25:57market speaker buy model. And price
25:59literally come down back.
26:00Take out these people into the POI, and
26:02boom, bounce.
26:04So, three things that
26:06you would you would actually see on the
26:08POI and literally know, "Okay, this POI
26:09is valid."
26:11Sweep.
26:12Um confirmation is your breaks. I don't
26:14want to call confirmation. Confirmation
26:15is what you is the reason why you're
26:16even buying the trade cuz the market
26:18structure should be the reason why
26:19you're getting on on the trade.
26:21You're breaking you've broken structure.
26:22Yes, you know you're now bullish. You're
26:24buying. You start to look for POIs. So,
26:26POIs first must have an inducement.
26:28First, if the POI you think is extra
26:30valid doesn't have an EPOI. If the POI
26:33you think is extra valid doesn't have
26:34one before it, then that's you you
26:37yourself you're the inducement cuz if
26:38you set your orders there, you literally
26:40become the inducement. You are the
26:41inducement to a POI much below that one.
26:44So, it's good to actually be able to to
26:46be able to look. I don't expect you to
26:47get it.
26:49I don't expect you to get it at first,
26:50right? I expect you that now if you
26:52start chatting, be sending me your
26:54chats, be sending them on the group.
26:56Asking me, "Okay, which POI do you think
26:57is valid?" Those questions. From those
26:59answered questions and probably the ones
27:01I just leave, I just totally ignore for
27:03you to be able to learn from experience.
27:05From those things, you're going to be
27:06able to start learning
27:08the very core thing about inducements.
27:10And if I'm going to take any trade in
27:11between the future, you'll see that
27:13every single one of them is either we
27:15have an inducement or we are going to
27:16wait for one to be created, which is the
27:18engineered liquidity. We're going to
27:20wait for one to be created. And after
27:21that one is created, you're not going to
27:22jump in immediately. We'll still wait
27:24for our what? Our change of state of
27:25delivery. There's so many other
27:26confirmations that you could use to know
27:28that price is going to actually buy,
27:29right? There is no rush on any trade cuz
27:32even if you miss the first entry, price
27:33will give you a new one, right? Price As
27:36long as the candles keep printing, there
27:38is literally opportunities abound.
27:40Opportunities abound, they will not
27:42finish. So, don't be in a rush to like
27:44get into a trade because I'm going to
27:45miss out. No, you're not missing out
27:46anything. Price is going to come back.
27:49Price is going to do the same thing and
27:50you just need to be aware. And this is
27:52why focusing on a few pairs too will
27:54also do you good because you're not
27:55going to be able to miss out on moves on
27:56those pairs. Since I limited my pairs to
27:59four, I'm literally eagle-eyed over four
28:01of them. I cannot see a move and miss
28:03it.
28:05Four. And the other ones, I just use
28:06them for teaching materials, right? I
28:08think I told And I told you guys that
28:09one I kind of like just go back to to
28:11look at is GJ because it it always has a
28:14very good price action. GJ.
28:16So,
28:17um these are things you're going to
28:19start seeing as you keep proceeding.
28:21Hope it's not my laptop that's off in
28:22this one this thing came down. It's 6%.
28:24All right. So, that is literally it.
28:27Um and also
28:29um what are the kind of
28:31inducements? Now, an inducement can be a
28:33previously mitigated POI, number one.
28:36Right? An inducement can be a previously
28:38mitigated POI. Now, after a change The
28:41next one is after a change of character,
28:43an inducement can be a valid POI before
28:46the low, before the extreme. You guys
28:49already know what I'm talking about.
28:50An inducement can be a POI before the
28:52extreme cuz you know that when we change
28:54character, we literally head for the
28:55extreme for price to start going up
28:57again. So, an inducement can also be the
28:59POI before the extreme after the change
29:01of character. That's two. Now, third one
29:04is that an inducement can also be weak.
29:07A weak, right? A rejection weak. Let's
29:09say price actually got into this place
29:11and rejected.
29:12Or price got into a void. A void means a
29:15POI a a a a a a a a a a a a zone you
29:17cannot explain. It's not a POI. It's
29:19nothing. Just got into that place and
29:21rejected, right? That move is simply
29:23what? Creation of what? Inducement. So,
29:26a an inducement can also be when price
29:28rejects from a void, an unexplained
29:30region. If it rejects and leaves behind
29:32a weak because most times inducements
29:33appear as weeks, it can be an
29:35inducement. Now, the last one is an
29:37inducement can be an undisturbed dual.
29:39Right? You're going to talk about that,
29:41too. Cuz when we get to swing trading um
29:43profiling, you're going to understand
29:45what an undisturbed dual is cuz you need
29:47an undisturbed dual to know where you're
29:48going to enter, number one. And you also
29:50need to know what a protected level is
29:52for your swing, number two. And you also
29:54need to understand where you're going to
29:56target, number three. Cuz if your target
29:58is not an undisturbed dual, you're
30:00wasting your time. Price is going to
30:01literally get to a POI just before your
30:03target and dump on you.
30:05So, these are things we're going to keep
30:07looking at.
30:08So, you can see that inducement in
30:10general liquidity, they're not really
30:11not difficult at all, right? Look at
30:14your charts. Look at places price
30:15reacted from. Look at places price
30:16bought from. You would understand that
30:18price actually what? Used inducements to
30:21actually push from those levels. Right?
30:23Price used inducements to push from
30:25those levels. Now, let's get on the
30:26chart. Let me see if I'll be able to
30:28spot a few before my laptop gives up the
30:30ghost.
30:32Okay.
30:34So,
30:35now this is this one on GU now that took
30:38everybody by surprise. Remember that we
30:40say that whenever price is um
30:45So, look at this one that happened on
30:46GU, right? We had um this kind of like
30:50exhaustion that happened here when price
30:52broke this structure, we didn't really
30:54have an impulsive move.
30:57And then that's literally price
30:58exhaustion and then price just dropped.
31:00This drop alone, this drop alone, right?
31:03There's a video I have on my YouTube, I
31:04think, understanding um
31:06directional bias, understanding what
31:08price is going to do next based on the
31:09volume of the candles. Now, this drop
31:11alone is going to tell me that okay,
31:12price is bearish because it just dumped,
31:15right? And it dumped and left behind
31:17this POI on the 10-minute time frame.
31:19Now, normally, because of this um push,
31:22I was supposed to have price react from
31:24here. And you can see that price did
31:25react from there and dropped. Although,
31:27I would not even take this kind of
31:28trades because there's a fair value gap
31:30there. Price reacts on the fair value
31:31gap and drops.
31:32This thing price is doing is just
31:34literally what's creating
31:36and engineering liquidity for price to
31:37use, right? And you can see that because
31:40there was no there was no there was no
31:41um
31:42there was no um
31:44there was no um inducements here
31:46before it. And also,
31:48I forgot to even add, an inducement is
31:50going to be close to POI. So, all these
31:51things you're seeing here,
31:53they're not they're not inducements,
31:54too. They're just liquidities, right?
31:56And inducements will be very close to
31:57the POI. Also, note that it's going to
31:59be close to it. If you call something
32:01your POI, the inducement is going to be
32:02close to it, right? It's going to be
32:05close to it. So,
32:06um because this one is not close, it's
32:07not an inducement for me. And so, price
32:09literally what created one very close to
32:11the POI, right? And that was the one
32:13previously mitigated fair value gap. So,
32:15I just knew that price was not going to
32:17use the fair value gap again. The next
32:18was to look for where did the fair value
32:20gap end and what's the other block
32:21that's just before it because price is
32:22going to read through that place, right?
32:24So, um price dropped, engineering this
32:27liquidity, and then market just went
32:29back up and boom, dropped.
32:31Right? So, look at this one as well.
32:36Look at this one as well.
32:39Do you know that someone can actually
32:40thought that there was
32:42a change of
32:45character there?
32:46On the deal on for buy?
32:49Yes, for
32:50from the chart. Exactly. That was my
32:52friend even thought it was a change of
32:54character, right? The person may not be
32:56able to see properly, but I did that by
32:59us from a very, very high level of
33:02understanding of price action. There's
33:04some things you cannot explain. This is
33:06now literally a shift and there's a
33:07break of structure. Everybody is
33:09literally expected to buy from here, but
33:11the market is going to liquidate your
33:12ass. Why? Because on the last I don't
33:14know if you all can remember on the last
33:17market session we had, I told you guys
33:19that there's something that GU does,
33:21right? For a while now because you can
33:23just look at what market is doing and
33:25just understand the pattern.
33:27Now, it has been it does this thing
33:29where it's after a pump, it range,
33:32range, range, then the next pump comes.
33:34Then they started this one, it range,
33:35range, range for 4 days, 1 2 3 4, then
33:38there's a literally dump to the other
33:40block before it pump. It does it again,
33:42range for 4 days, then dump to the other
33:44block
33:45before it pump. What does it do now?
33:46>> They are weeks, they are
33:48weeks.
33:49>> Huh?
33:50>> Those are weeks, not days.
33:52>> You're going to see the week now come
33:53down. You never week week four will come
33:54with a week, right? So now this one now
33:57has also ranged for 4 days.
33:59The next week because I think okay, even
34:01this week self you can possibly see this
34:02week. This week can dump into this POI
34:04and reject and you're going to see that
34:06week, right? And then the next week
34:07comes and buys. So it was because I
34:10basically understood that that was going
34:11to happen, that was why I was not even
34:13expecting any buy again and also on the
34:16weekly time frame, we didn't break we
34:17didn't break above with a body close,
34:19right? We didn't break break above with
34:21a body close. Unlike EU, EU broke above
34:24with a body close, right? See it.
34:27It broke above with a body close,
34:28right? So I'm not expecting price to go
34:31below this red line, this low. Because
34:34if you broke above it, it would have
34:34closed, but GU did not. GU just broke
34:37with a week and then we are supposed to
34:39now take out Come on, don't worry. We're
34:41going to get there.
34:42You're going to understand why price did
34:44that. Get there.
34:46So, let me not let me not
34:48let me not lead you astray for now.
34:51>> I have a question about the
34:52>> That's the reason why price sold instead
34:54of buying like you would have thought.
34:56Okay, please ask. Ask.
34:58>> Your question My question is about this
35:00inducement here. So, from what you
35:02explained
35:03a valid inducement must take out the
35:05swing point that created it.
35:06>> Yeah.
35:08>> This inducement on GU here did not take
35:10out
35:10>> not an inducement. I didn't call it an
35:12inducement. I said it's an engineered
35:13liquidity.
35:14>> Okay. Okay.
35:17>> It's an engineered liquidity because
35:18there is no liquidity close to the POI.
35:20Remember, engineered liquidity will only
35:21happen when there is no liquidity close
35:23to the POI. Price would have to engineer
35:25one.
35:25Right? So, that's an engineered
35:27liquidity.
35:29Not an inducement.
35:30An inducement is something like this.
35:33So, look at this now.
35:35Um this is because I'm on the 1-hour,
35:37but if I go on the 4-hour, you're going
35:38to see that we have this
35:41where we have
35:43we have this shift
35:44and we have this break.
35:46So, literally this low is inducement.
35:49And price what came back to it, tagged
35:51this other block even before it served.
35:54There's even an inducement close to it
35:56that you could also use to validate it
35:57as well.
35:58So, if I zoom it in
36:02other than here being the inducement,
36:03which is normal, the major inducement,
36:05right? There's still another inducement
36:08again very close to it, very close to
36:10the POI that price bought from.
36:14So, you can see the other block here.
36:20And you can see that inducement just
36:22that week
36:23very very close to it and then boom.
36:26Price mitigates and pops up.
36:31Taking out what's the high.
36:35So,
36:37yes, inducements are real and you're
36:39going to see them on every timeframe.
36:40So, if you have your bias, if you've
36:42framed your trade, your bias, all you
36:44just need to do is, when you're picking
36:45your POI, make sure your POI is
36:47everything inducement. And then, there's
36:48something about sales, though. If you
36:50notice retracement sales, many of them
36:52don't even have inducements at all.
36:54Right? You should also know that many
36:55retracement sales don't have
36:56inducements. Just
36:58if I just vibe, sales are very crazy.
37:00That's why I don't take so many sales.
37:02They just vibe and then just do whatever
37:04they want to do cuz this one didn't have
37:05any inducements. I wouldn't have taken
37:07it if session was not confirmed.
37:09This one didn't have any inducement, but
37:11price somehow sold. So, yeah, sales too
37:14actually sometimes sales are aggressive.
37:16Don't need all those inducement
37:18Except it's a major sale that's going to
37:19literally change the trend. But
37:21retracement sales like this,
37:23you don't even need to find inducements
37:25on them. As long as the low is low, the
37:27high is valid and all the highs are
37:29mitigated, you can take your trades from
37:31there. Right? And this is how we're
37:32going to look at mitigation too. That's
37:34a very interesting topic.
37:36We'll look at mitigation, too.
37:38So, um this is another one.
37:41This is another inducement. See the one
37:42I was talking about? Let me circle here
37:44so I don't lose it.
37:47Let me go to the 13 minutes timeframe.
37:54Jesus, I just remember something new.
37:57What was the name of my Who is that
37:59stuff?
38:01That's it, yeah. Mhm.
38:03Let me plug my laptop well cuz if this
38:05video does not convert, those who are
38:06not in the class will die.
38:10And Zoom converts video.
38:14Zoom converts video.
38:17Mhm.
38:20All right. So,
38:28my phone is not charging here. What?
38:36Mhm.
38:38Okay.
38:42I wish you'd behave yourself.
38:45Huh? Anyways,
38:47unless it be a big. So,
38:50um or your POIs just Okay, now let's let
38:53me explain this one before maybe I'll
38:55end the class. Now, this is the one I
38:56was telling you you guys about.
38:58Where you have
39:01your before after your break or no?
39:04Like that.
39:05So, before your break, you have like
39:07something like this. An internal low,
39:10right? Then you have your break. Price
39:11will always come back to take out this
39:13low
39:14into this low and then buy. And that's
39:16what happened here.
39:17We had a break here.
39:19Internal low serving as an inducement.
39:23Right?
39:25And then price bought from this POI.
39:29And what do we have? Price even
39:31literally came Price even did like a
39:33minor confirmations as it came back. I
39:35can see how this low is mitigated, but
39:39then this low is valid. Some persons
39:40will be able to start placing their
39:41trades here knowing that price will
39:42still come back again to the extreme
39:44because there's only an unmitigated POI
39:45there. It came back, it came, gave
39:48another opportunity, and then boom,
39:49pumped.
39:50So, price will always give you an
39:52opportunity to get in on a trade, no
39:54matter what.
39:55I think it has to recharge now. Thank
39:57goodness.
39:58Price will always give you an
40:00opportunity to enter a trade, no matter
40:01what.
40:02So, that is it for inducements.
40:04Inducements, you just need to understand
40:05that there is no definition behind them,
40:07but then like I've given you the
40:08shortest Please write it down. Write it
40:10down and make sure you keep memorizing
40:12it that an an inducement is going to be
40:14a valid low for a buy, a valid low
40:17after another valid low.
40:19Right? A valid low that is after another
40:21valid low. And it's going to be all
40:22those things I called it, either a
40:24mitigated POI,
40:26either a week that that rejected from a
40:28void, an undisturbed DUL. We'll look at
40:31that when we get to DUL. It can also be
40:33um
40:34um
40:36What's the other one again?
40:39It can also
40:39>> Rejection from a void.
40:41>> Exactly. And that I've called that one.
40:42It can also be um just like this one
40:44I've explained, a low before the break.
40:47Right? A low before the break of
40:48structure. That one is always This one
40:50is always the purest form of inducement.
40:52A low before the break of structure
40:54is always the lowest is the purest form
40:56of inducement cuz price will always get
40:57here,
40:58mitigate and go.
41:00All right?
41:01So,
41:02anyways,
41:04that is that about that. So, ask your
41:06questions before my MacBook gives up the
41:07ghost.
41:10>> Um okay, so
41:11>> I have We're going to be looking at
41:12We're supposed to even look at some
41:13distance. What's the time?
41:15Let me know if we can do OTE entries.
41:178:58. Is this charging? I think it's
41:20charging.
41:22Hold on.
41:26Let me see if we can do OTE entries
41:28before we call it a night. So, please
41:31ask questions on this one.
41:34>> Um okay.
41:35Um you know, I asked on the group about
41:38USDCHF. And then um
41:40they said it is advisable for me to
41:42actually just stick with it now.
41:45>> Yeah.
41:45>> You think the market is actually
41:47printing an engineered liquidity?
41:49>> So,
41:50yeah, for the sell that is going to
41:52happen.
41:54>> For the sell, not for the buy.
41:56>> For the sell now, you can see it's
41:57bearish.
41:58Which buy again?
42:01For the sell.
42:04>> Okay.
42:05>> Is that right? Thank you.
42:06I had an entry on that pair, bro.
42:10I didn't even take
42:13And it's going well.
42:16And it's going well.
42:23So you can see what happened here again.
42:25You can see that this was a valid low, a
42:27valid order block. But still price used
42:29it, price induced it for this particular
42:32low. And if you go down the time frame,
42:33you're going to see there's a low here.
42:35Right, there's there's another block
42:37here. And this was literally what I was
42:38telling like somebody. That many of
42:40times you can think this is mitigated,
42:42but it's not. This is where price would
42:44always want to go and collect to come
42:46into this low properly. So when it's
42:48mitigated is when let's say price has
42:49tapped on this open here, then I can say
42:51it is mitigated. As long as price has
42:53not tapped on this open,
42:56I cannot even consider it mitigated. I
42:57can just refine that as the last point
42:59of entry. LP, last point of mitigation.
43:03Don't worry, we'll look at mitigation
43:04chart. But anyways, it looks like it's
43:06sell because there's an order block
43:08here. So although you cannot turn this
43:11too quick to sell it.
43:12Cuz this is where it may start to reject
43:14from.
43:15So
43:17it may happen in your sleep. Maybe it
43:18just release one CHF news and boom, it
43:21just spikes up, right? And gets to that
43:24place. So that's where it's going to
43:26actually start selling from if it wants
43:27to sell.
43:29You know what I'm saying?
43:29>> Gone.
43:35>> So you can hold on till it takes out
43:37these highs
43:39if you wish.
43:43To take

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