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My Exact 1 Minute Scalping Strategy For Prop Firms (Full Walkthrough) — Transcript

by Waqar Asim · 12,999 words · 1,822 segments · language en · Watch on YouTube

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0:00What we're going to do today is a
0:01complete practical workshop where you
0:03get to take a look inside my mind on
0:05exactly how I trade candle by candle on
0:08the one minute time frame for 2 weeks
0:10straight. Over the last few months,
0:11we've done many guides together on many
0:13of the essential components to
0:14profitable trading. But today, we're
0:16going to be bringing it all together
0:17where whatever price action develops,
0:19we're going to go back and refer to one
0:21of the guides and see how it applies in
0:23the live market. And you're going to see
0:24the raw truths of trading. How to do a
0:26top- down analysis. How to understand
0:28what daily cycle presents. Which trade
0:30model to deploy, when your psychology
0:32comes into play, risk management
0:33strategies, trade management strategies,
0:35when to be completely mechanical, and
0:37when to allow intuition and discretion.
0:39This is an entire walkthrough on how to
0:41actually trade the markets. And by the
0:42way, this is the exact same strategies
0:44that I've been using for the last one
0:45and a half years for my public signals,
0:47my public track record where I call my
0:49trades live ahead of time. And I've
0:51documented 59.5% gain. And today I'm
0:54going to reveal it all. Okay, so let's
0:56start off on the daily time frame. We
0:57see a lot of dots on the screen, but
0:59let's make some clarity on it. So we can
1:00see initially there was bearish price
1:02action from all of these red dots where
1:04we have lower lows, lower highs, lower
1:06lows, lower highs, and then that trend
1:08continues on. Then we arrive to this
1:10bullish portion where we are getting a
1:12sequence of higher highs and higher
1:13lows. So when we see this bullish price
1:15action that goes on to take these highs
1:18and then lead to a break of structure,
1:19then we see a market structure shift
1:21bearish. So we look left and we see okay
1:23have we come off an important supply
1:25level potentially. So we don't know but
1:27we're coming into a level and getting a
1:29bearish reaction and price is holding
1:31that level and not going higher taking
1:33out internal structure making internal
1:35trends. But then we also see that we get
1:37buildup of liquidity inducement
1:39mitigation and continuation bullish. So
1:42we think is price going to break out
1:44over here after grabbing this liquidity
1:46we have to understand what was the real
1:47inducement versus who's actually in
1:48control. So when we see that this break
1:50of structure leads to a failed higher
1:53high in fact it respects the previous
1:55area that led to a bearish break of
1:57structure. Price comes in gives a new
1:59leg of lower low. And reading into all
2:01of this now we see that the sellers are
2:02in control after taking liquidity of
2:04this previous high and we see all of the
2:06bearish order flow became liquidity. All
2:08of this ascending trend line became
2:10liquidity when we tapped into that
2:12supply zone to mitigate the previous
2:13area that made the break of structure
2:16after hitting a zone of supply on the
2:18left. When we arrive to this lower low
2:20in the market, then what do you expect?
2:21Well, we know that we've had a bearish
2:23push down. We've made a lower low
2:24compared to previous lows. A new low is
2:26made. So, you'd expect a complex pull
2:28back up to somewhere in this level and
2:30then continuing lower. That's what would
2:32make sense if you only traded market
2:34structure. And why would that be is
2:35because you've had a bearish push down
2:36and then a second bearish push down. So,
2:38you would just assume just from market
2:40structure, you'd have another supply
2:41zone in this area cuz this lower high
2:44made this lower low. This lower high
2:45made this lower low. So somewhere in
2:47this area, we should make a new lower
2:48low. That's not what happened because
2:50liquidity showed us otherwise. When we
2:53see there's a buildup over here, an
2:55inducement low, a bullish push out to
2:57break structure on the left, a
2:58mitigation over here to fail to make a
3:00lower low, we've now seen a complete
3:02liquidity cycle. Buildup, inducement,
3:04mitigation with pushes out. And that
3:07complex pullback starts a new trend
3:09where we're taking out areas of supply
3:11and forming higher highs, higher lows.
3:13We tap into this area of supply on the
3:15left. What happens? We invite in sellers
3:17with some bearish candles, some dogee
3:19candles, some indecision candles and
3:21then buyers take control. So once buyers
3:23have taken control, we need to
3:24understand what's going on next. Are we
3:26simply grabbing liquidity of these highs
3:29or are we now continuing the bullish
3:31trend that we found where we have this
3:33low in the market, this higher high,
3:36this higher low and now forming a higher
3:38high. Who is in control? We need to
3:40understand it because market structure
3:41is now at a unique point where we don't
3:44know. Are we completely bullish or are
3:45we just grabbing liquidity and we're
3:47going to continue bearish? Was this
3:48range over here a sellers trap? Was it a
3:50reaccumulation? We need to understand
3:52what's going on because a lot of things
3:54can happen. This could be a sweep and
3:56then price comes lower. This could be a
3:57break test continuation. There are so
4:00many variations. So, we need to dig
4:01lower time frames to understand what's
4:03going on. Now, from one of the guides,
4:04you'll remember what exactly do we do on
4:06the daily time frame because it's a
4:07quick glance. We shouldn't spend more
4:08than one or two minutes on the higher
4:10time frame. And what are we trying to
4:11achieve? Three very specific things.
4:13We're trying to understand trend. We're
4:15trying to understand points of interest
4:16and liquidity. A quick glance and then
4:18we move down time frame. And the way
4:19that I've been teaching you is find main
4:21pushes. So this low in the market has
4:23led to this high in the market. And
4:25therefore we have found an external
4:27trading range because we have gone from
4:28a lower low in the market to making a
4:31higher high breaking a previous higher
4:33low to make a higher high whilst
4:35trapping people in this area because
4:37people were invited in based on the
4:39market structure read. Now we need to
4:40understand as we zoom into relevant
4:42price action. Have we found a potential
4:44supply zone over here that price is
4:46going to react towards because we may
4:48have now had a high in the market that
4:50has now bearish push down retracement to
4:53this extreme and then we continue lower
4:55maybe to this level and maybe continue
4:57bullish or this was all a run of
4:59liquidity now to continue bearish. This
5:01is the daily time frame so it's a lot to
5:03call in the moment but for now all we
5:04can understand is we have a potential
5:06supply zone over here. The nearest
5:08demand is going to be this block over
5:10here. And by the way, the daily time
5:11frame is not my preferred place to be.
5:13These are massive zones, not overly
5:14precise and not really giving much
5:16direction. And in terms of liquidity, we
5:18just look left and see where we are. And
5:19we see we've grabbed liquidity of the
5:22previous supply zone that was holding
5:23price. So I see liquidity has been taken
5:25of this structure point and we are also
5:27arriving to this other supply zone. I
5:30need to understand was that relevant and
5:32why am I interested in this area at all
5:34is because this area of a lower high
5:36made this lower low. So structurally
5:39relevant whilst grabbing liquidity of
5:41the previous lower high. That's where we
5:43are arriving to now. And when I do a
5:45quick glance at it, I can also see it
5:47meets some of the criteria that I like
5:48which is it had a buildup of liquidity.
5:51It had an inducement that led to the
5:53push lower. So we know we are in the
5:54right area in terms of supply. When we
5:56come back to this area, we now need to
5:58understand has this supply zone induced
6:00this liquidity to make a bearish
6:02reaction to come lower or are we still
6:03bullish. This is to be determined. So
6:05therefore, we found trend overall we are
6:07bullish. We found points of interest,
6:09supply and demand zones and we found a
6:11liquidity pool and main inducement. Now
6:13let's go down to the next time frame to
6:14connect things together to build the
6:16framework for the next two weeks of M1
6:18walkthrough. Now as I jump to the 4our,
6:20I'm going to do the same thing again.
6:21And with this condensed price action,
6:23I'm looking for trend. I'm looking for
6:25liquidity and points of interest. So, as
6:27I connect these dots together on this
6:28time frame, I'm seeing that we had this
6:30higher time frame inducement hitting a
6:32supply zone. And we can now start to
6:33refine the supply zone that we've found
6:35from the daily. For now, on the 4 hour
6:37to this area, but probably even further
6:39on the 1 hour and the 15-minut time
6:41frame. So, I'll leave it ambiguous for
6:42now based on just an order block over
6:44here, not the way to actually refine a
6:46supply zone, but we'll do that as we get
6:48to lower time frames. And then we also
6:49have this demand area that price hit.
6:51And we can actually refine it a little
6:53bit further and say, well, we've hit the
6:54top of the demand, but the real demand
6:56is actually down here. The reason I say
6:58that is because this is where we've left
7:00an imbalance after we've had a buildup
7:03inducement mitigation. So, we've had a
7:05liquidity cycle over here with volume
7:08shown by that imbalance. So, therefore,
7:09this 4hour refinement shows us that we
7:11haven't reached a maximum point on
7:13either the supply zone or the demand
7:15area. We have a lot more space. So
7:16therefore conclusive trend is not
7:18established because we could come higher
7:20to this supply zone or we could come
7:22lower to this demand area. And these
7:24things do connect by the way because we
7:25could now continue bullish to this
7:27supply zone and then go down to this
7:29demand area and then see what happens
7:31next. Maybe higher or maybe bounce and
7:33break the level. So an external supply
7:35and demand is not conclusive. You look
7:36at internal. So therefore take a closer
7:39look at what is the 4hour main push. The
7:414hour main push is here where we have
7:43this higher low that went on to make
7:45this internal higher high. And when we
7:47do a quick market structure read, we can
7:49start to see that we had this higher low
7:50over here that went on to have breaks of
7:52structure down here. So therefore, with
7:54that bearish break of structure, we can
7:55start to see that the sellers took
7:56control made this low in the market from
7:59that push down and then it could have
8:01gone on to make lower lows and continue
8:02lower, but it didn't cuz when it hit
8:04these supply levels, it made an internal
8:06low by grabbing liquidity inducing and
8:09making a bullish push out. So therefore
8:11we have found an internal break of
8:12structure therefore showing buyers took
8:14control and we originated from that
8:16liquidity over here. So we found an
8:17inducement buildup inducement bullish
8:20push out higher low higher higher low
8:23higher high clearly buyers in control
8:25but also creating a new buildup of trend
8:28line liquidity and then when price comes
8:30into that trend line zone we get a
8:32bullish engulfing candle which then gets
8:34taken out. We trapped in trend line
8:36traders and therefore this became an
8:38inducement of the buildup over here
8:40leading to this bullish push out. Now we
8:42are starting to paint a picture of
8:43control because this inducement over
8:45here led to a bullish breaker structure.
8:48Then we had this buildup as we were
8:50going bullish that had an inducement and
8:52led to this bullish break of structure.
8:54So now that we found our most recent
8:55main push, we have also found the
8:57inducement of control. And therefore we
8:59can now understand where are the points
9:01of interest where we have this demand
9:03area over here at the discount of our
9:04main push on the 4hour from higher low
9:07to higher high. We have a 4-hour main
9:09push with external high external low.
9:11The external low is a demand area that
9:13had an inducement inside of it.
9:14Therefore showing us that the buyers are
9:16in control and the buyers will be in
9:17control until we arrive to a refined
9:19supply zone which is up here. And this
9:21was remember a higher time frame major
9:24inducements hitting a supply zone. So
9:25this area could be important but we also
9:27have to remember it is factually a
9:29higher high. So this is a higher high
9:32that could be supply. So we need to see
9:34later on as we bullish climb up into
9:37this area. Are we going to buy into the
9:39supply zone or is it just a higher high
9:41and we continue buying or we see signs
9:42of seller strength because it is a
9:44supply zone. Structure gets confusing
9:46alone. So we'll layer it with other
9:48things as we arrive there. Okay. And
9:49that's our job done for the 4 hours. So
9:51now we quickly go down to the intraday
9:53time frame. That is the 15-minut time
9:54frame. And we do the same thing again.
9:56We find our external ranges with
9:58structure, liquidity, and points of
9:59interest. So what I can start to see
10:00very quickly is that when we had this
10:02bullish push out and break of structure
10:04formed to make this external range high,
10:06we grabbed liquidity. We had an
10:07inducement and a push down. This area
10:09hits demand. And after another small
10:11inducement over here with that
10:13inducement, we had the fuel to come
10:15lower, hitting this demand area. Right
10:16now we can see sellers are in control as
10:18we arrive to this decisional area
10:20because that's the area that led to the
10:22breaker structure. So we are now in a
10:24mixed zone. We need to understand who's
10:25in control. It's also pretty interesting
10:27to see as we have this price action form
10:29that this previous buildup and this
10:32inducement over here that led to the
10:34bullish push out had the mitigation that
10:36allowed price to come higher. This was a
10:39complete liquidity cycle that led to a
10:41higher high purpose complete. Once we
10:43had that purpose complete of that
10:45previous liquidity cycle, this
10:46inducement over here and this inducement
10:49over here made this remaining area a
10:52trap, a smart money trap because we had
10:54buildup inducement. Smart money traders
10:56wait for this area. They wait for this
10:57sweep once again to a previous sweep
10:59zone. They see this bullish price
11:01action, the engulfing, the bullish, the
11:02trend line. They look to buy and then
11:04they get taken out. Why? Because a smart
11:06money trap was created and this seller's
11:08inducement was in control. And that's
11:10exactly how we're going to read price
11:11action by understanding inducements to
11:13see who's in control because we have a
11:15supply zone inducement potentially. And
11:17the reason I say potentially is because
11:19it didn't lead to a full break of
11:21structure just yet. We had a supply zone
11:23that was an inducement that led to
11:24internal bearish price action, but it
11:26hit a decision demand. So therefore,
11:28decisional demand could make a new
11:30higher high. So we have to see who's in
11:32control because yes, it is an inducement
11:33that led to bearish, but it also arrives
11:35to the efficiency of the pullback from
11:37the structure cycle videos. As you may
11:38remember the full guide where we broke
11:40down how to correctly read market
11:41structure. So when we have that mixed
11:43read, the only thing we can do is drop
11:44time frames and see who's in control. So
11:46this is when I turn on my custom
11:47indicator where I can see the session
11:49timings, the Asia ranges, the key
11:51windows, the high of previous day, low
11:52of previous day, all the key things that
11:54I look for. And let's see how we arrive
11:56to the beginning of the month and start
11:58the new day off. So I'm going to go and
12:00see how Frankfurt presents and wait for
12:02my key window which is London. As we
12:04arrive to my London key window, it's
12:06interesting to see how we've come deeper
12:08into this demand area. And not only have
12:09we come deeper into demand, we've taken
12:11liquidity, which you can see on my
12:12indicator, low of previous day. The
12:14lowest point of yesterday was induced
12:17and swept over here. So, let's do a
12:19lower time frame read on exactly what is
12:20going on. Is this induced meaningful or
12:22is it just a lower low in the market?
12:24From the video of how to read Asia
12:26range, you'll realize that information
12:27in the Asia range is critically
12:29important and not to be missed out. Make
12:31sure you go watch that guide. Otherwise,
12:32you're going to be ignoring information
12:34that is important during the Asia range.
12:35And what I can take from this is that we
12:37had this bearish channel. We had this
12:38small inducement over here. Another
12:40small inducement over here. And another
12:43small inducement over here. What were
12:44they doing? Allowing price to come
12:46higher. Price hit supply of lower high
12:49that made an internal lower low.
12:51Therefore, these small inducements were
12:53just to come higher and then another
12:55mitigation into this previous inducement
12:57zone to finally bring price to this
12:59highest point. Once price has reached
13:01the highest point, you see that it
13:03simply respected a level of supply after
13:06inducing some liquidity on the left and
13:08therefore I need to understand that this
13:09inducement which is an inducement in the
13:12moment could also be a trap. So I need
13:14to confirm that later on. And when I see
13:16how price is presenting after, we see
13:18that the sellers take control because
13:19they induce lead to a break of structure
13:22printing our Asia low liquidity which is
13:25all swept during the Frankfurt open and
13:27then pushing out aggressively towards
13:29London. So what I'm reading from this is
13:32that this area has now printed a smart
13:34money trap because it's Asia high
13:35because we have arrived to a demand area
13:37and done an inducement with a strong
13:39reaction. Now the reason I can say this
13:41is a trap with decent confidence is
13:42number one we have a sweep into demand.
13:44So therefore even though this was an
13:46inducement it served its purpose by
13:48coming into demand. Now the buyers have
13:50taken control cuz it's a demand area.
13:51They've swept to show intent Asia range
13:54lower previous day and also coming into
13:56a demand area and then a meaningful
13:58reaction out. So therefore this might
14:00invite in sellers who will just get
14:02taken out because it will be a shortlive
14:03reaction before a spike higher. The
14:05principles of a smart money trap. And
14:06when I take a even closer look on how on
14:09the M1 things presented, price did a
14:11buildup inducement to mitigate the
14:14previous inducement into the demand
14:15area. So we can see buyers are starting
14:17to take control and they continue to
14:19maintain it because there is another
14:21small buildup over here and another very
14:24small inducement showing me that the
14:26buyers are maintaining control. A few
14:28consecutive mitigations over here
14:30maintaining control. So there's no
14:32sellers strength coming into this area
14:34despite us grabbing potential liquidity
14:37of this trend line of these highs. When
14:39this liquidity is taken, sellers show no
14:42strength. Buyers maintain. So this is
14:44encouraging me through this London
14:45session, we should pierce through this
14:47smart money trap level. And as we arrive
14:48to that zone, we break through it
14:50without any resistance. So this is
14:52important. Now I've identified a smart
14:53money trap. But then this presents to
14:55me, have I introduced liquidity now?
14:57because I've taken a smart money trap
14:59and I've taken Asia high liquidity. Am I
15:01going to see sellers strength for the
15:03session? And as I play it forward, I see
15:05one leg and it's in my key window, my
15:07key time window. So, this is where I
15:08need to understand a few things. Where
15:10is my invalidation? So, a small portion
15:13of demand. Remember the M3 test. If it
15:15looks like something on M1, just quickly
15:17check on M3. Do you still see any
15:19bullish candles? And we see slight
15:20consolidation over here. So, it
15:22marginally passes my M3 test. It's not
15:24real demand, but it's a very slight
15:26decisional. And I'm going to be
15:27conservative and say here is my
15:29invalidation for sells. And remember
15:30this is me being very conservative
15:32because this is no real demand. And what
15:34I see when I arrive to here is I have an
15:35inducement of Asia high and an
15:37inducement of a smart money trap that
15:38forms a high in the market forms an
15:41internal push down makes a lower high
15:43even though it should continue higher
15:44and then goes on to make a lower low. So
15:46as long as it doesn't reach my
15:48invalidation, I can potentially sell on
15:50a two-legg protocol around here. So
15:52let's see what happens. Price taps into
15:54my invalidation and it's locked in. It's
15:56even closed off the imbalance on M1
15:59which is a full invalidation to be
16:01conservative. Therefore, the two-leg
16:02protocol is gone. In fact, we even
16:04produced a three-leg protocol with the
16:07third push over here and then the fourth
16:09push. So, the sell is gone for me. But
16:11in theory, if price did this second leg
16:13and then came into the supply zone, I
16:16would sell this with session volatility.
16:18But that's why we have our
16:19invalidations. But that was a potential
16:20trade right here where it would have
16:22been a nice 5 pip stop loss and I'd sell
16:24it down to at least this area. And the
16:26power of intraession trading is that
16:28even if the buyers are in control,
16:29remember we've come into a demand area
16:31and we've induced from the low of the
16:32day to the high of the day presently my
16:351 to3 riskreward is around the 50%
16:37retracement. So even if it's bullish
16:39impulse, bearish retracement, bullish
16:41continuation and I get taken out of the
16:43trade, just that bearish portion down
16:45into the 50% is enough for me to lock in
16:47my partial 1 to3 riskreward. In this
16:50case, that did not play out. It reached
16:51my invalidation. I'm just showing you
16:52where my head was at. Okay, now that
16:54we've reached our invalidation, this has
16:56also become a invalid zone for me. So,
16:58I'm just going to put it purple for
16:59trap. I'm no longer looking for sells,
17:01but it doesn't mean I'm looking for buys
17:02either. I am now neutral as we come out
17:04of my key window. And my job is simply
17:06to wait for the New York window now. And
17:08we can see exactly what happened. It
17:09came to the invalidation and then took
17:11out these sellers that were wrongfully
17:12trading. Why? Because the buyers are in
17:14control. We can see that from this
17:16inducement and that first liquidity grab
17:17did not invite in sellers. So, we look
17:19for the next targets on the left. And
17:20when I come to the M15, I can start to
17:22see where could my next target be. That
17:24next target could be all the way up
17:26here. This supply zone that was an
17:27inducement that led to a bearish push
17:29down could be my next target. So, I
17:31could be bullish all the way into this
17:32area and I'll need to consider and see
17:34what's going on in this area in case
17:36there's anything important. I'll put a
17:38question mark cuz it needs to be
17:38confirmed. Now, let's come back to the
17:39M1 and see how we arrive to these zones
17:41in my New York window. Now okay as we
17:43arrive to the key window now we can
17:45start to see that price did a internal
17:47higher high like so did an internal
17:50higher low and now let's investigate
17:51what exactly is going on what we can
17:53start to see price as it formed the
17:55internal lower low printed equal highs
17:57liquidity and then this inducement push
17:59out mitigation became the fuel this is a
18:03130 news event so something to avoid and
18:06when they build up liquidity to the high
18:07and do inducements and mitigations to
18:09the low we can see that the buyers took
18:11control but we don't enter upon and we
18:13let a little bit of a cool off happen
18:14cuz we don't want to be fighting the
18:16news momentum. So, let's see with this
18:18bullish strength from news how it
18:20arrives into this first questionable
18:21supply zone. Let's actually go and
18:22verify this zone first of all. Is it
18:24even relevant? And we can start to see
18:26it could be where we have a zone that
18:29has all of this buildup and then goes on
18:31to have an inducement over here. And
18:33with that inducement, we have left an
18:34inducement supply zone with a nice
18:36imbalance over here leading to a bearish
18:38breakdown. So, we need to see is price
18:39going to arrive and react to this area
18:41or is it just going to be a bullish New
18:42York session? The gray box is my key
18:44window. I want to see how we arrive
18:45there. And as we arrive to this key
18:47window, I'm starting to see, okay, it's
18:48narrowly missed my objective, but we've
18:50potentially had an inducement. We've had
18:52a buildup over here, but we've had no
18:54bearish reaction because we are just
18:56maintaining this bullish order flow. So,
18:59I have had an inducement and no bearish
19:01strength. So, this is not a good sign
19:03just yet, but let's see. Okay, then we
19:05have this internal mitigation and then
19:07we have a break of structure and make a
19:09lower low. So now I'm thinking, okay,
19:11this could be an interesting area to
19:13potentially sell from and I can
19:15potentially sell it down to the previous
19:16demand area that was an inducement for
19:18news. So that can be my invalidation
19:21zone or at least a target for the sell.
19:23This is against the trend. This is
19:24against overall inducements and the
19:26momentum that we've seen from the
19:28beginning of the day inducement into
19:29demand. Then we have another demand area
19:31formed over here. The buyers are in
19:32control, but we've had a bearish
19:33inducement. So, we need to see is it
19:35worthwhile trading it despite going
19:36against the momentum of the day. So,
19:38when I look at this area and I do a pip
19:40count, I can start to see this is a
19:41seven pip zone. It's on the slightly
19:43larger side, but I'm going to wait for
19:44confirmation in this area because it
19:46hasn't met my preferred supply zone and
19:48it's not fully convincing me because
19:50there is no imbalance in between these.
19:51So, there is that internal mitigation.
19:53So, I want to confirm the zone. So, I'm
19:55going to wait for price to arrive in
19:56here and give me a confirmation in the
19:57time window to potentially sell down to
19:59here. Let's see what happens. So price
20:01is already now making these internal low
20:02lows and now potentially the trade is
20:04gone. So when I see this order flow
20:06forming of trend line liquidity and
20:08these internal mitigations that are
20:10happening now I can see that the price
20:11has already done the movement for the
20:12session. Remember the average session
20:14volatility can be 10 to 25 pips. So
20:16we've already had from the high of the
20:17session to the low of the session 20
20:19pips. So already the session move has
20:21happened. I don't want price to come all
20:22the way up here and then go all the way
20:24back down because when I do an analysis
20:26over here of the impulse from the lower
20:28to the high, we have already crossed the
20:3050%. So, we could have had the bullish
20:31push up, bearish retracement to the 50%,
20:34and bullish continuation. So, I don't
20:35want to sell anymore for those two
20:37reasons. So, now I'm no longer looking
20:38at this area and I'm going to put it as
20:40actually a weak zone. Purple meaning for
20:42me weak and potentially even a trap.
20:44Let's continue on in the session and see
20:45what happens next. So it's very
20:46interesting to see that we have a
20:48inducement of this previous level and
20:50the inducement of that previous level
20:51leads to a internal push out mitigation
20:54bullish price action mitigation and then
20:57eventually a bullish pop. So when we
20:58zoom out for the day and see exactly
21:00what's happened yes we have now
21:01completed our window but this trade was
21:04completely logical. In fact, it followed
21:05a very nice daily cycle variation where
21:08a demand area resting right below an
21:11Asia low and low of previous day. Sweep
21:13of low of previous day and Asia range
21:15into demand and then bullish price
21:17action where we have consecutive bullish
21:18inducements. We had inducer number one
21:20over here. Inducer number two,
21:21inducement number three in this area and
21:24inducer number four. Consecutive bullish
21:26inducements and then no confirmation in
21:28these supply areas. And now price
21:30arriving to this supply area. But it's
21:32the end of the day, not a trade for me.
21:33So now let's swiftly move on to the next
21:35day. This is why time matters because I
21:37don't want to be entering trades during
21:39late New York session after London close
21:41or even in the Asia range. Now we arrive
21:43to the next day and we have to see
21:44what's happening next. So we can see
21:46price came to these supply areas and
21:47failed. Didn't show any strength from
21:50sellers. Now I'm looking at this next
21:51supply zone over here. I'm thinking we
21:52can target here potentially. So now I
21:54need to understand did taking out this
21:56level lead to an inducement? Have the
21:58sellers taken control or are we just
22:00coming back to this demand area? What's
22:01going to happen next? So now I found
22:04supply zone to target, demand area to
22:06target based on this area over here that
22:08led to the bullish pushes out. It said
22:10decisional and now I need to understand
22:12because we are in the middle. We're in
22:13no man's land. We need to see structure
22:14is neutral. Supply and demand is
22:16neutral. Inducements are showing us
22:17buyers are in control from 1 2 3. Now we
22:20need to see is there any sellers
22:21inducement to bring us lower or is it
22:24still bullish and we continue higher.
22:25Let's read it on M1 from inducements.
22:27Well, like I can start to see that we
22:28have a low taken not only Asia low but
22:31equal lows and then a inducement
22:34potentially on Frankfurt open. Frankfurt
22:37open is a trap time for me. I don't
22:39trust them at all. So I'm going to put
22:40this as SMC trap potentially. I don't
22:43know for sure, but the fact that we're
22:44not in a point of interest and it's a
22:46minute open Frankfurt open sweep, this
22:48gives me doubt and therefore I'm not
22:49going to be trading it. As we do our
22:51regular Asia range read, we can start to
22:52see we took high of previous day
22:54liquidity. So therefore this is showing
22:56me sellers are in control and then once
22:57again over here a clear buildup of
22:59liquidity trend line liquidity to target
23:02and then this inducement over here
23:03taking that control sweeping this
23:05liquidity to target this liquidity. Now
23:07once again we have a buildup of
23:08liquidity over here and I'm seeing the
23:10real inducement potentially this area.
23:12Let's see. I'm not going to trade either
23:14of them but I'm seeing this more as a
23:15trap. Let's give it a few candles.
23:17Bullish reaction to invite in smart
23:18money traders session open and bullish
23:21playing out. So, not every smart money
23:23trap actually plays out as a trap.
23:25Remember, a broken clock is correct
23:26twice a day. If you look at a clock
23:28that's broken and it says 6:00 at 6:00
23:30a.m. and 6 p.m. is correct, the rest of
23:32the day it's incorrect. So, just because
23:33it works sometimes doesn't mean it's
23:36truth. And this for me is one of the
23:37weakest ways to trade smart money.
23:38Therefore, becomes a smart money trap.
23:40When you have no point of interest and a
23:42Frankfurt open trade and inducements
23:44from the sellers presenting, I will
23:46never take that trade. Even if it was a
23:48London open trade on the minute,
23:49mitigating that IFC, I'm not going to be
23:51trading that. That is not my strategy.
23:53And as I always say, restricted trader
23:54is a profitable trader because this
23:56might play today, but more often than
23:58not, it will lead to losses that I don't
23:59want to have in my system. Now, as the
24:01rest of the London key window plays out,
24:02I've already seen the intentional move
24:04of the session. It was this bullish push
24:05out. I'm not going to buy anymore cuz it
24:07doesn't meet my criteria and there's no
24:08reason to sell. So, I'm just going to
24:10let the session play out. And as I
24:11arrive to my New York window, I'll
24:12evaluate what's happening, who's in
24:14control based on inducements and POIs.
24:16Okay. As we arrive to my key window now,
24:17it looks like it's been an eventful
24:19London session. So, we can clearly see
24:20that was not the inducement of control.
24:22In fact, the inducement of control was
24:24an invalid one for us. What we typically
24:26call a smart money trap. And then we can
24:27see that the buyers maintained control
24:29because we had all of these demand areas
24:31respecting one after the other after the
24:33other where we can see the previous IFC
24:35is respecting. We can see that this
24:36complete bullish order flow that we have
24:38bullish push out comes to mitigate.
24:39Bullish push out comes to mitigate.
24:41Bullish push out comes to mitigate. We
24:42can see buyers control and higher highs
24:44being formed. Then eventually a news
24:46release once again just after New York
24:48open causes this sweep and inducement
24:51and once that inducement happens we
24:53target this smart money trap which was a
24:55sweep of liquidity but sweep of
24:57liquidity on Asia high for me is a trap
24:59and therefore that smart money trap got
25:01taken out because it is a sweep on Asia
25:03high and without context without a POI
25:05so I'm not going to trade it and we can
25:07see that there's bias control from these
25:08inducements over here so therefore the
25:10sellers that were getting into this sell
25:12based on that supply zone on that sweep
25:14zone got trapped and news took everyone
25:16out as our key window approaches and
25:18opens. Now it didn't reach our supply
25:20zone and it's coming to the territory of
25:22this previous inducement zone. So I need
25:24to see have buyers maintain control or
25:26are we now basically in the territory of
25:28this supply area? I need to now
25:29understand from this supply zone are the
25:31sellers taken control or from this
25:32induced demand area are buyers in
25:34control inducements are unclear market
25:36structure is unclear. I need to
25:37basically not trade this session. Let's
25:38see what happens. Okay, price comes into
25:40this demand area, does another quick
25:42sweep, and therefore this next
25:43inducement right here shows me that the
25:45buyers are in control and this supply
25:47zone was invalid. Now, why could that
25:48supply zone be invalid? Well, as I
25:50mentioned previously, it's not really a
25:52supply zone cuz it didn't lead to a
25:53lower low. Just from market structure,
25:56we had a low in the market that formed a
25:57higher high. This went on to hit the
26:00decisional demand with an inducement
26:02forming a higher low. After that, we go
26:04on to make a new higher high. higher
26:06highs previously that form higher lows,
26:08not breaks the structure are not supply
26:10zones, which is why we put a question
26:11mark. Therefore, we know that this was
26:13not a supply zone. It was a trap zone
26:15and the bullish market maintained. And
26:17therefore, when we count the
26:18inducements, we're really seeing that
26:19the buyers are really in control from
26:21inducements. Inducement number one,
26:22inducement number two, inducement number
26:24three, inducement number four,
26:26inducement number five, and most
26:28recently the session, inducement number
26:30six. No trades for us, but we can read
26:32the market with clarity. Now, let's let
26:34the session play out and arrive to the
26:35next day, which is going to be Friday.
26:37And because it's the first Friday of the
26:39month, it is NFP, we have to be a little
26:40bit cautious to not get caught up
26:42trading the wrong side of the markets.
26:43But it is important to remember this
26:45could also be considered a powerful
26:47inducement. So, I need to see are the
26:49buyers in control or are the sellers in
26:50control. But remember, all of this order
26:52flow and strength that we saw yesterday
26:54is now become liquidity after the
26:56breaker structure. Once we have a
26:57breaker structure, this became a
26:59liquidity target. So, let's be careful
27:00not to get caught out in this area and
27:02look for strength on who is in control
27:04based as always on lower time frame
27:06inducements reading through our Asia
27:08range. Now, as we read through this Asia
27:10range from the previous day, we know
27:12this could potentially be an inducement
27:13because we made a new higher high and
27:15then we start to see that Asia range is
27:16showing us a nice picture that is this
27:19over here and mitigation and then this
27:21slight sweep inducement break of
27:24structure buildup inducement break of
27:26structure. We can start to see that the
27:28sellers are in control. Taking out this
27:29wick inducement push down mitigation
27:32with a slight wick run of liquidity
27:34build up inducement mitigation. We can
27:36start to see sellers are taking control.
27:38And remember Frankfurt open is not our
27:40area of interest. So therefore this
27:42buildup sweep of liquidity on Frankfurt
27:44and push out is not for us. In fact we
27:46can read this as buildup of liquidity
27:48and inducements and this becomes the
27:50trap. So just like yesterday where I was
27:52speaking about smart money trap the same
27:54principle applies. I just need to
27:55confirm is this London open sweep a act
27:58actually actual inducement or just a
27:59higher high yet to be confirmed but I'm
28:01more interested to see is this a smart
28:03money trap to set the precedent for the
28:05day and then I know I can target all the
28:07way down to this demand area. So let's
28:08see if we get a sell opportunity based
28:10on a continuation model which is an Asia
28:12midline sweep trading into a smart money
28:14trap. This area if it's confirmed can be
28:17a nice selling zone. Why? because I'm
28:19trading off the back of not only these
28:21inducements over here, but also this
28:23inducement higher high over here. So,
28:25let's see if I get an opportunity.
28:27Unfortunately, not just yet, and it
28:29doesn't come up in time. I would have
28:30loved to have sold over here into this
28:32trap, but the trap has already been
28:34liquidated now, and my opportunity has
28:36been taken away from me. Now, as I
28:38continue to read on, I can start to see
28:39we had a buildup over here, inducement
28:41over here, clean mitigation over here
28:44after taking this liquidity. So we can
28:45see these complete liquidity cycles
28:46showing sellers control inducement push
28:49down bearish break of structure buildup
28:51inducement push down build up inducement
28:53mitigation push down. Sellers are
28:55completely in control. I wish I could be
28:57part of this but it's not for me because
28:59it doesn't meet any of my criteria.
29:00Another potentially missed opportunity.
29:02Now all we do is let price rock until
29:04our New York session. Our next trading
29:06window cuz we don't trade every hour of
29:08the day. Time windows are important
29:10because they reduce losses. They show us
29:12the time of most probability, most
29:14meaningful inducements, avoiding traps.
29:16This is the way to be trading. Now, as
29:18we've had New York open, we can see
29:19price has come back to this inducement
29:21over here, this previous liquidity cycle
29:23zone and done a buildup, mitigation,
29:25clear push down. So, we found another
29:28potential inducement. Sellers are
29:30actively in control right now and also
29:32targeting all of this trend line buildup
29:34liquidity. Liquidity is running the
29:36show. Now, as we arrive to our key
29:37window, we are arriving to this demand
29:39area. So, I want to see is price going
29:41to respect this demand area or break
29:43through it because for now all I see is
29:45inducer number one, inducer number two,
29:47inducer number three, inducer number
29:48four. Sellers are in control. I don't
29:50want to catch a falling knife. So, I'm
29:51going to be a little bit careful,
29:52especially as we've just had NFP. The
29:54first Friday of the month, a few wicks
29:56being thrown around. Who knows what's
29:59going to happen? Who's in control? And
30:00look at this. a bit of a shakeout where
30:01the NFP movement has now induced high,
30:06taken out this previous zone, taken out
30:08all of this liquidity. Actually, all of
30:09that liquidity now was NFP liquidity. We
30:13can take this away. And now we've
30:14potentially seen an inducement to
30:16control the session, but it's not really
30:18tradable because it's a large zone. How
30:20am I supposed to manage such a large
30:21zone with a demand area right below?
30:23This is something you want to generally
30:25avoid. As we arrive to the demand area,
30:27sellers are clearly in control because
30:28of that inducement. I don't want to
30:30randomly get into a buy. And this demand
30:31area gave no confirmation. It slid
30:34through it like a knife going through
30:35butter. And therefore, this decisional
30:37demand that we had. Therefore, when we
30:38pop back to our higher time frame, we
30:40see that this decisional demand that led
30:42to this internal push out, we liquidated
30:44all of this order flow liquidity and
30:46inducement all day long to show sellers
30:48control. Potentially, we come to a
30:50demand area over here, which was a
30:52complete liquidity cycle from the other
30:54day because remember, we swept low of
30:55previous Asia low into a demand area.
30:58Had a push out. This was an inducement
30:59of control, a genesis inducement for
31:01this whole bullish price action started
31:04from this area. So price is now
31:05revisiting this area and therefore this
31:07area became a decisional trap. It just
31:10got liquidated. Market structure alone
31:12does not work. You need to combine it
31:14with everything else. Now we come back
31:15to our M1 and we potentially see as we
31:17induce this area, purple for trap. I
31:20want to see as we arrive to our
31:21inducement demand, do we have any buyer
31:23strength? Cuz we're still in our key
31:24time window and we see that very nicely.
31:26A nice pop, a nice bullish reaction, but
31:29no way for me to get in. No lower time
31:30frame confirmation and an invalidation
31:33unfortunately right here, which is the
31:34efficiency of the pullback. One of my
31:36favorite invalidations, most powerful
31:39invalidations. So, I'm not going to
31:40ignore it even if I want to get into
31:42this buy because we've seen inducement
31:44into demand area taking out a decisional
31:46key time window. We just have no lower
31:48time fraing confirmation. So, even
31:49though this is probably very likely an
31:51inducement of a decisional, there is no
31:53way to enter it and without an entry is
31:55just an idea. this inducement into
31:56demand can at least push back up to this
31:58area and then we see what happens next.
32:00So there is potential in it but right
32:02now no confirmation. Now we break past
32:04it. I'm once again potentially
32:06interested. I've now seen a bullish
32:08break of structure and I've got a
32:09potential demand area right here. It's a
32:11decisional demand. So I want to see will
32:13price tap into this area give me an
32:14inducement and lower time frame
32:16confirmation. Let's see. Tapping in no
32:20confirmation gives another break of
32:21structure. is toying with us today, but
32:24if it doesn't meet the criterias, what
32:25to do? We are restricted traders because
32:27we want to be profitable. We don't just
32:28jump in on zones and hope for the best.
32:30So, even though this was rather
32:31predictable, that mitigation right here,
32:33the best entry would have been somewhere
32:35around this extreme, it just never came
32:37back. It's an inducement of a decisional
32:38into demand. Everything we love to see
32:40just without the confirmation.
32:42Therefore, this trade has left us. But
32:44at least we know how to read direction.
32:45We know who's in control. We can predict
32:47what's going to happen next. And as it
32:49comes back to this imbalance right here
32:51for London close, it unfortunately
32:53doesn't meet my criteria because of time
32:55and because of the efficiency of the
32:56pullback of this inducement zone. We
32:58have now come into this inducement
32:59supply. I don't want to be risking a buy
33:01anymore and therefore because of timing
33:03because we have now mitigated this
33:04inducement supply. For all we know, the
33:07road map could be inducement bearish
33:09lower low
33:11going on to make a lower low deeper into
33:13this demand and then maybe popping. So I
33:15don't want to jump into a buy just yet.
33:17Time is invalid. Structure is invalid. I
33:19don't have a clear read on control. So I
33:21call it a day. So now as we arrive to
33:24the next day, Monday, new week, we can
33:26see price is arriving to that previous
33:27inducement zone, but it doesn't have any
33:30strength anymore because we arrived to
33:31this inducement demand. Remember, look
33:33left. We had a inducement into demand
33:36leading to a higher high. And we came
33:38back to that demand area with an
33:40inducement. So therefore, the next
33:42reasonable expectation is to go on and
33:44make a new higher high. That's pretty
33:45obvious, but that's just structure
33:46alone. Let's read what's going on. But
33:48I'm not interested in selling just yet
33:50because that is most likely a trap zone.
33:52When I read into what happened from
33:54yesterday's London close to now London
33:56open, I can start to see that we had a
33:58buildup inducement mitigation. Buyers
34:00are in control. So this inducement from
34:02yesterday and also this inducement from
34:04today and mitigation is showing me
34:05buyers are in control and all of this
34:07order flow and also higher highs being
34:09formed. So I can see buyers are clearly
34:10in control and I don't want to be
34:12selling. But let's see if I can actually
34:13find a buy opportunity. And when you
34:15look at that, we are sweeping Asia high
34:18without real context. So therefore, I'm
34:20not going to be a part of this party,
34:21but I can read it and maybe even
34:23identify a smart money trap. Let's see.
34:25So we have a buildup of liquidity around
34:27Asia high. We are sweeping highs on
34:31London open. What are smart money
34:32traders going to be thinking? They're
34:34going to be thinking, perfect London
34:35open sweep. And where are we going?
34:37We're going to a previous NFP inducement
34:41zone. So, we're going into a supply area
34:43and we're sweeping Asia high in London
34:44open. This is wonderful. I'm sensing
34:47trap. Let's see if it is. The trap
34:49chronicles. If you watch the smart money
34:50trap guide, you'll start to see why I
34:52know this is a trap or at least think
34:54it's a trap. And it's because we are
34:55arriving to the efficiency of the
34:56pullback. This is a no-go zone for me.
34:58Even if it plays out, it doesn't worry
35:00me because this is not my trade. I'm
35:02sensing this is a trap. I'm with the
35:04momentum of yesterday and today. I don't
35:06want to fight the overwhelming tide,
35:07which is demand area inducement. And we
35:09have a liquidity cycle down here with
35:11another inducement and all of this trap
35:13zone to target. I'm seeing a big magnet
35:15over here to say price needs to come
35:16higher and therefore I want to find an
35:18entry. I just can't find an entry to
35:20buy. But it's interesting to observe and
35:22we can start to see that we are printing
35:24equal highs to potentially target. I
35:26just don't have an inducement to trade
35:27off until potentially now if we sweep
35:29this area which we are right now. This
35:31is what I like to see. If we can get a
35:33sweep of this area coming into this
35:34demand area. Very slight sweep over here
35:37leading to this push out. We might be
35:38getting signatures to potentially do an
35:40aggressive buy, but I still need a
35:42confirmation over here. Maybe an
35:43internal break of structure slightly
35:45given, but not meeting any criteria.
35:47There's no imbalance in here. There is
35:48no reason to be buying. I don't want to
35:50just be jumping in with hope. I want to
35:51see a clear inducement with an imbalance
35:54left, which we are not seeing right now.
35:55Okay, now we are seeing something. We
35:58have seen we've induced this entire
35:59level. And as we induce this entire
36:01level, we have a bullish push out. So,
36:02if I want to take a very aggressive
36:04trade, I could take this Asia midline.
36:06not really a midline buy into this
36:09liquidity that I see. So therefore, with
36:10a full analysis, I'm reading into it and
36:12it does fit a criteria which is we have
36:15time window inducement. Perfect. We have
36:17overall context. Remember the context is
36:19that big magnet above because we've come
36:21into a demand area with an inducement
36:23and we're chasing a new higher high from
36:25somewhere over here to somewhere over
36:27there. And we're now using the trap that
36:29we see as our magnet that we know we
36:31have equal highs to target and a smart
36:33money trap to target and this inducement
36:35to show us an entry potentially. We've
36:37now seen an internal breaker structure.
36:39I don't usually trade these. So this is
36:41an aggressive trade. I'll be honest, but
36:43when your account is up, if you're
36:44floating 10% 20% up on your account, you
36:47can afford to take aggressive trades,
36:49but this would not be a first trade of
36:50an account. This would not be a trade
36:52you take when you're in a losing period
36:53or in draw down. This is a trade you
36:55take as a C++ setup when you are already
36:57in profit and your psychology is sound.
36:59So let's see if we do get tapped in now
37:01that we're seeing this retracement. I
37:03know that my break even protocol will be
37:05on this M1 shift. If we hit an entry and
37:07our one to three target one is going to
37:09be right here. So this is our
37:11take-profit one. As always fixed
37:13takeprofit levels like so. I spent years
37:16and years doing take profits randomly
37:17and I always put all of my focus into
37:19the entry and then with the exits which
37:20is just as important I would randomly go
37:22off a level maybe Asia high maybe M15
37:24structure I had so many levels on the
37:26screen and based on how greedy or
37:27fearful I was that would be what I
37:29picked. Then I realized I need to take
37:30this like a science and then I took a
37:32thousand trades worth of data to find my
37:34optimal areas to be taking profit. So if
37:36you want to see a full guide for how to
37:38take profits effectively backed by data
37:40and AI go and check the link in the
37:41description. I don't want anything from
37:42you. It's free for the rest of your
37:44life. something that really helped me
37:45revolutionize my trading and I think it
37:46might help you too. Okay, so now we have
37:48our fixed level, we know our break even
37:49point, we know our stop loss, we know
37:51our partial point. This is an entry good
37:53to go as a C plus setup. We get tapped
37:55in on this refined IFC with a three pip
37:58stop loss. Looks wonderful and perfectly
38:00break even right now and take profit
38:02one. So finally a trade 1.5% locked in
38:05for trade one on Monday. Now let's see
38:08if this goes on towards our take-profit
38:10level two. That would be wonderful if it
38:11does. Even though it's not the best
38:13setup, it has potential because we have
38:15a big magnet above and the only real
38:17resistance we see is this potential
38:19inducement over here. But it's not the
38:21most impactful, but it might arrive
38:22there for the New York session. Overall,
38:24we are targeting a new higher high and
38:26on high of previous day. There is
38:27another inducement that could happen.
38:29So, there is some roadblocks along the
38:30way. I don't have the most faith in this
38:31trade, but let's see. Okay, we arrived
38:33to the first resistance area, which is
38:34this inducement supply. I'm not going to
38:36do anything until my next key window to
38:38trade. There's no other action to take.
38:40And just like that, the trade has now
38:41been taken out. Break even plus partial.
38:43So therefore, the max of this trade was
38:45a 1 to6. We were only able to capitalize
38:47on the 1 to3. Now let's see what the
38:48intention of the market is. Cuz we came
38:50to an inducement supply and now we're
38:51having a bearish reaction with a bearish
38:54break of structure. So I need to now
38:56understand what is going on. Have the
38:57sellers taken control? Because now we
38:59have induced this whole trap area and
39:00Asia high. We've taken all of this
39:02liquidity. We now see all of this area
39:04and we've come into an inducement
39:06supply. Do sellers now regain control or
39:08is this just a relief to now come back
39:10and find another inducement? Let's wait
39:12for our key window. New York open has
39:14happened. Key window arriving and where
39:16do we happen to be arriving? Well, we
39:17are arriving to this demand area right
39:20here. So, it's very interesting to see
39:21the market follows its laws. But I now
39:23need to see because it is Asia low. I
39:25don't like that because Asia low is
39:27liquidity. So, even though I've had
39:29price come into my demand area, we had
39:31this inducement high into the supply
39:32zone. Not the best supply area, but it's
39:34an inducement nonetheless. I want to be
39:36careful because there is liquidity right
39:37below and there is this inducement
39:39demand right here that I would rather
39:41prefer. So let's watch M1 to see if
39:43there's any signs of bullish strength
39:45but my inclination is this is not a
39:47important area. And just like that no
39:49lower time frame confirmation still
39:51bearish and taken out. So this was
39:54reasonable to assume would be a trap
39:56because Asia low liquidity is right
39:58here. Now we have liquidated Asia low
40:00liquidity. Let's see what is going on
40:01because we might have a potential trade
40:03on our hands if we arrive to our demand
40:05area which is just down here. I can't
40:07call this an inducement by the way. This
40:09is not an inducement. Reason being is
40:11because we've just come to a previous
40:12supply zone on M1. Now it's not
40:14important not something we trade but you
40:16just look at it and you say we have
40:17lower low high lower low high
40:21potentially lower low. So I don't want
40:22to get into a buy when M1 structure is
40:25bearish. Okay. Now we see price action
40:27come higher. Now I've seen a bullish
40:29conversion. Now I know that the buyers
40:30are potentially in control on M1 and
40:32they are backed by an inducement of Asia
40:34low. Now it's coming to my end of my key
40:36window. So it's not a trade for me, but
40:38price could potentially respect this
40:40area. They're just not in my key time
40:42window and therefore not a trade for me.
40:43Now let's fast forward to the next day.
40:45Isn't it cool to see that as we approach
40:47London close, another key time window
40:49based on my dotted lines, which you
40:51know, we have another inducement for
40:53London close. And yes, it didn't come to
40:54the M1 demand that I wanted, but it came
40:56to the M5 demand right here. So it meets
40:59price action lows. We had an inducement
41:01bullish push out and inducement into the
41:03M5 demand and continuation bullish. Just
41:05not a trade for me but completely
41:07understandable. We are learning to read
41:09price. Once you read price, understand
41:10price, see direction, then you see how
41:12you trade because there is a difference
41:14between what you see and what you trade.
41:15A professional trader doesn't blend them
41:17all together. There are trade models and
41:19valid trades and the rest is just your
41:21knowledge, market experience, market IQ,
41:22and ideas. Don't blend them all because
41:24a restricted trader is a profitable
41:26trader. Now let's fast forward to the
41:27next day. Okay, the next day has arrived
41:29and we have arrived to this inducement
41:30demand. I don't have hope in it. I'm
41:32seeing this all as a trap and now
41:34liquidity. That's number one thing to
41:35point out with a nice demand area right
41:38below. I'm more hopeful for this area
41:40because I don't want lower of previous
41:42day to be my entry with Asia low all
41:44aligned. This is all liquidity to me and
41:46further enhanced by the fact that we
41:48came to the previous inducement supply
41:50of yesterday that led to this bearish
41:52push down. We have now arrived to this
41:54area. So now we can see that the sellers
41:56are showing strength and not only that
41:58we had a buildup right before Asia range
42:01and then Asia high just happens to be an
42:03inducement. Now Asia high being the
42:04inducement of the day is pretty tricky.
42:06I'll be honest there is a protocol to
42:08follow. So I'll explain it if needed.
42:10But what I'm more interested in is that
42:12as we arrive to my trap zone that I'm
42:14not interested in. Frankfurt high gets
42:16swept towards my London open. So now I'm
42:18interested to see if this is an
42:20inducement around Asia midline of
42:22Frankfurt's high and targeting all of
42:24this liquidity right here and the
42:25liquidity of low of previous day and
42:27this smart money trap zone. I am very
42:29interested for buyers to get induced and
42:32I come into this demand area right here
42:34fueled by this inducement. And when we
42:36connect the dots, it makes perfect
42:37sense. We have an inducement supply
42:38zone. Price comes in, does another
42:40inducement supply and then comes in,
42:42does another inducement. I'm connecting
42:44one, two, and three inducements with a
42:46nice magnet below into this area. I want
42:48price to come into that demand. Let's
42:50see what happens. Potentially also gives
42:52rise to a sell opportunity here. By the
42:54way, the imbalance is rather low, which
42:55is not ideal. I don't want M1 points of
42:57interest to be so large. It's 11 pips.
42:59That is quite large for an M1 supply
43:01zone. So, it will need confirmation. But
43:02let's see in our key time window. If we
43:04arrive into there, well, swallowed my
43:05own words there. We didn't arrive into
43:06there. So, the sell is gone. I can't
43:08sell this anymore. But, it's showing me
43:10that this seller's inducement is in
43:11control. And now we are coming with my
43:13nice magnet to take low of previous day,
43:15Asia low and a smart money trap. You
43:17love to see it with this ascending trend
43:18line liquidity. You can't make this
43:20stuff up. And now we are in my demand
43:22area which was a previous inducement.
43:24Remind yourself. And now we are
43:25connecting demand areas because where
43:26was this demand area before? Oh, it was
43:28another inducement demand. And where was
43:30this one before? Another decisional. So
43:32we've got inducement demand number one
43:34right here. Inducement demand number two
43:36right here. And now we are getting an
43:37inducement into another inducement
43:39demand right here. This is a great great
43:40setup. We're in the key time window.
43:42We're inducing everything we want to
43:43see. Smart money trap, Asia low, low of
43:45previous day, and we are arriving to a
43:47refined inducement demand. It doesn't
43:48get better than that with context
43:50bullish, chef's kiss. All I need is
43:52lower time frame confirmation on M1. So,
43:54right now it's a very weak confirmation,
43:56but I do like the setup. So, I might
43:58chase this. But let's see if it develops
43:59further. But usually, I'm not taking an
44:01entry like this. But because I do like
44:02the setup so much, it's an A+ setup. We
44:05have now found a potential inducement
44:07with an internal break of structure on
44:09M1, more like the 30 secondond. Very
44:11aggressive entry, but I just want to
44:13find a way to get in. And because I have
44:14profit from yesterday, I'm allowing
44:16myself to be a little bit aggressive
44:18just to get into this trade. Hopefully,
44:20it doesn't fly away from me. And
44:21unfortunately, it's an inducement. And
44:24it's gone. It just goes up. And now when
44:26it moves so much, look, the average
44:27session movement is 10 to 20 pips. When
44:30it's already moved 25 pips, the move of
44:32the session could already be gone.
44:34Especially as we arrive into premium.
44:36Remember, just pull a fib from London
44:38high to London low. We have crossed the
44:4050%. I don't want to be buying after
44:42price has already reached premium.
44:43Therefore, this trade is already gone
44:45unless I find a re-entry. Now, this is
44:47pretty interesting cuz we have a nice
44:49buildup and a second inducement now. And
44:51therefore, this leaves a potential
44:53demand area that I can look to buy upon
44:55now that we've had a break of structure.
44:56But we are arriving to a potential
44:58invalidation, which is this inducing
44:59supply. But I'm going to call it weak
45:01supply because it's already served its
45:03purpose. This inducement supply is only
45:05an M1 inducement whereas this is lower
45:07previous day Asia low into an inducement
45:09higher time frame demand. This
45:10inducement overpowers this inducement by
45:12a mile. So therefore I'm not going to
45:13avoid buying if there is something valid
45:15but it is something to be doubtful
45:17about. Okay, price is coming back to my
45:18territory that I'll be interested and
45:20continues bullish. Now that we've had a
45:22buildup potential inducement into this
45:24weak supply now I don't want to just
45:26chase the trade. So I'm going to be
45:27careful now and not get into a buy
45:29because now we are potentially seeing
45:30sellers take a bit of control. So that
45:32is shortlived. Okay, that's a good sign
45:34and it was a positive sign because we
45:36had no break of structure. When there's
45:37no break of structure, that is not an
45:38inducement. This is still buyer
45:40strength. But now the move has gone away
45:42from me. Let's see if I can find a buy
45:43opportunity during my New York window.
45:45Let's allow the session to play out. So
45:46the next target is obviously going to be
45:48my Asia high, which is likely going to
45:50be a trap because Asia high inducement
45:53is not important. Especially, well,
45:56there it goes. I was about to say
45:57especially to trap when you've had a
45:59higher time frame inducement in London.
46:01The flow of the day is to grab that
46:04liquidity. When you have an inducement
46:05low meaningful, the next target is Asia
46:07high. So we have now come to that smart
46:09money trap Asia high zone. Even though
46:11there was highs, sweep, push down, this
46:13inducement took it out and smart money
46:15traders lost out once again. So now we
46:17have taken high of previous day and a
46:18smart money trap and Asia high as we
46:20arrive into our key window. But I don't
46:22want to fight the momentum of the day.
46:23So I'm not going to jump into a sell
46:25unless I really see a reason. And right
46:27now I see no reason. This is the last
46:28higher low. This is a higher high. We
46:31have not even made a M1 breaker
46:32structure. So therefore, we cannot call
46:34this a supply zone. This is simply
46:36another trap because sellers haven't
46:38shown no strength and that's why they
46:39are swiftly taken out. I swear I'm not
46:42cheating here. You can see me. I'm doing
46:43this with you live in time. If I take a
46:45loss, I'll take a loss with you. But
46:46there is no valid criteria and for now
46:48we know that the inducement of the day
46:50is this London key window inducement of
46:53impact. It's a medium inducement into a
46:55inducement demand. Therefore, we allow
46:57the momentum of the day and there is no
46:59sell opportunity. Well, let's actually
47:00look closer because now that I've taken
47:02all of this liquidity, I don't want to
47:03get ahead of myself actually all the
47:05way. We've taken all of these orderflow
47:07liquidity where we have smart money trap
47:10previous inducement supply, previous
47:12inducement supply. We are liquidating it
47:13all in the key time window. We might
47:16have a New York reversal, but I need to
47:18see intention. So, let's have a look.
47:20actually when I see buildup potential
47:22inducement of everything on the left
47:24that I just mentioned leaving a
47:26potential supply zone not confirmed
47:28which is why I can't take it cuz there
47:29was no breaker structure but now we have
47:31internal breaker structure like so there
47:33is a trade on our hands very aggressive
47:35once again right here covering that high
47:37and 1 to3 is right here and bearish
47:40breaker structure on M1 leads to our
47:42break even protocol now the only thing
47:44that would need to confirm this really
47:45if I had a divergence between EU which
47:47I'm trading and GU where this was not
47:49forming a lower high it was forming a
47:50higher high, then I would definitely
47:51take this trade. But you know what?
47:53We're up. We've been very conservative,
47:55so we can actually afford to take this
47:56trade. And just like that, we're in a
47:58little bit of profit. No break even
47:59protocol yet. Now we can break even.
48:02Perfect. And we can actually see that
48:04there was another slight inducement
48:06right here. So we can start to see
48:07inducer number one, inducer number two,
48:08inducer number three. After a medium
48:10inducement and internal breaks of
48:12structure, now we can actually have a
48:14nice tight entry and one to three
48:15riskreward is our partial. Let's see if
48:17we reach it.
48:19Just like that. This is why I love
48:21reaction trading. I know that the price
48:22action is bullish. I know it's not going
48:24to go far bearish. But you know what?
48:26When I have a confirmation with an
48:27inducement in my key time window, I
48:30might as well take it because I have
48:31profit to play with. So now for my next
48:33trade, which was Tuesday, because it's
48:35counter trend, I'm not really hopeful in
48:36the trade. I'm going to lock in my full
48:38risk-to-reward. I want three
48:40risk-to-reward. I take full volume.
48:41Therefore, I lock in 3%. Because the
48:44reality is the 1 to 10, which is my
48:45usual take-profit too, is going to be
48:47all the way down here, which it could,
48:49but I'm seeing buyers are so much more
48:51in control. And my general rule of thumb
48:52is when I have a strong inducement into
48:55demand and a bullish push out, the 50%
48:58and above is where I want to be taking
48:59profit. My 1 to 10 is below that. So,
49:01I'd rather just lock in these gains. I
49:03might bite my words cuz it might go all
49:04the way down, but which it is, but I'd
49:07rather secure something based on
49:09probability. If this goes all the way
49:11down, then I'm going to be pretty
49:12annoyed. But it is what it is. We don't
49:16trade based on hope based on dollar
49:18amounts. We're based on what we see. And
49:19already I can see signs of stalling. We
49:21have a build up over here with a
49:24inducement into this demand area with
49:26another buildup forming. So now we are
49:28getting consolidation. Doesn't mean the
49:29buyers have taken over, but we can start
49:31to see that this could be a potential
49:32area for price to drop. And now because
49:34the London window is over, I don't want
49:36to be fighting a counter trend trade
49:37hoping it goes in my direction. Okay,
49:39now let's play through Asia range and we
49:40can start to see buyers are taking
49:42control based on all of these
49:44inducements that we see. We have another
49:46inducement right here. Build up
49:49inducement right here. Build up
49:51inducement right here. So we know that
49:53the buyers are taking control. Let's see
49:54if they maintain Asia range will be
49:56what's important. Okay, all of that
49:58order flow became liquidity once we
49:59arrived into the previous inducement
50:01supply following the laws once again.
50:03Now I want to see will price come down
50:05to my inducement demand. That'll be a
50:07wonderful place to find an entry and
50:09trade for today's price action. Let's
50:11play through to our key window which is
50:13London open. See how we arrive with
50:14who's in control.
50:17Okay,
50:18as we arrive with London open, I can see
50:21there is a clear buildup. There is a
50:22clear inducement and that inducement is
50:25into a previous supply zone cuz this
50:27lower high made at M1 lower low. We have
50:29now induced into supply and now we are
50:31targeting Asia low. So I can see the
50:33inducement of control. I can see a
50:34demand area target down here. There's
50:36just not really an opportunity to buy
50:38unless I really look into this one right
50:41here. Not really a specific trade for
50:43me. But let's see how it plays. If we
50:46even come back.
50:50Okay. The problem, the reason I'm going
50:51to be cautious on this area is because
50:53it's the second inducement and that
50:55second one has now had an inducement of
50:57Asia low. So when we have an inducement
50:58of Asia low, I just want to be careful.
51:00But we can watch and see what happens in
51:02this first inducement area. But now that
51:04we've induced low and had a session
51:05movement of over 15 pips, I'm just going
51:08to be cautious and not take any trade.
51:10Well, it didn't respect. Yeah, it looks
51:11like the Asia low sweep is what took
51:13control. Not a trade for us. Even though
51:14there was an internal break of structure
51:16right here, it doesn't meet any of the
51:18criteria because it's a very shallow
51:20sweep without a demand. So, no POI
51:22inducement. And even though it did give
51:24a bullish break of structure mitigation,
51:26it doesn't meet any entry for me. So, no
51:28trade for that session. And now, let's
51:29whiz towards our next key time window.
51:31We only trade 2 hours a day. London and
51:33New York key window
51:35and looks like a news release once again
51:38has popped off price action. So I just
51:40need to let it cool off. I'm not going
51:41to chase any trade when we have such
51:43momentum. So I'll call it a day very
51:45easily. Pick your battles as they say
51:47and we wait for the next day. So now
51:49let's remind ourselves on the higher
51:50time frame where we are because we've
51:52had a lot of eventful things happen and
51:54we remind ourselves that we are now
51:56approaching a higher high which could be
51:58a supply. So because it is a bullish
52:00price action higher higher low we might
52:02be going to make a higher high or we
52:04could be a supply zone coming down here.
52:06So this is a complete inflection point.
52:08I need to be really cautious and
52:10understand price action what's going on
52:11here. But we are arriving to a higher
52:13high supply zone on a higher time frame
52:16for this day. So I want to be trading
52:18liquidity sharply because we are in a
52:21potential zone of reversal. First point
52:24of liquidity is going to be Asia hype
52:25and if this happens on Frankfurt open
52:27then it is a trap as always.
52:29Yep. On Frankfurt Open, which is a trap
52:31for me. So therefore, if I can now point
52:34this out as a trap, I'm now putting a
52:36potential magnet, just like we always
52:37do. This is the third time in this video
52:39where we've had a Frankfurt open sweep
52:41and we've been consistently calling it a
52:43trap. Sometimes it is, sometimes it
52:45isn't, but now what I nicely see is I
52:48have this potential inducement area
52:50forming. So if I can get confirmation as
52:53I approach my London window.
52:56So now I'm really interested to see is
52:58all of this going to be an inducement or
53:00not. London open has happened right now
53:02there is no confirmation. I want to
53:04understand because even though we have
53:06hit this potential M1 supply I want to
53:08find if there's an inducement low around
53:10Asia midline that gives a reaction. So
53:12we have an inducement of all of this
53:14buildup on M1. We have a smart money
53:16trap above to target and I just need to
53:18confirm is this an inducement based on
53:21this inducement demand bang on Asia
53:23midline. And why am I interested in that
53:24area? because we swept liquidity over
53:26here and therefore this could be an
53:27inducement demand. Why am I interested
53:29in it? Because this meets the criteria
53:31of a continuation model. If you watch
53:33the video where I did on a continuation
53:34model, I did a full guide. Inducement
53:36around Asia midline that leads to
53:37internal high Frankfurt open trap trend
53:40line liquidity below inducement internal
53:42breakup structure and entry. This could
53:44potentially be a trade, but I haven't
53:45had my confirmations just yet. So, I
53:48want to be really careful. Now, I'm
53:49inducing the whole zone. This is why we
53:50trade confirmations. We don't just enter
53:52with inducements alone. I needed the
53:54confirmation. Now that I've had that
53:56confirmation, I've really found the
53:57inducements. And now if I can enter
53:59because once I see a break of structure,
54:01then I know I've got confirmation and I
54:02can trade this. Right now, we've had M1
54:05lower high, M1 lower low, inducement. If
54:07we get a bullish breaker structure,
54:09mitigation entry, we can now target all
54:11of this liquidity trap. Break structure
54:13happened. Now I just need to find a way
54:15to get in. The entry could be right here
54:18with a stop-loss nine pips. That's going
54:20to be quite large. An aggressive stop
54:22loss would be here. 1 to three
54:24risk-to-reward first target and break
54:27even point. Assuming this is the high of
54:30the moment, our break even point would
54:31be here. Let's see if this actually
54:32plays out. If it comes to an entry, if
54:34it keeps flying, think I've been missed
54:36out by a pipet. And is it gone? Yeah,
54:39it's gone. Smart money trap zone, false
54:41reaction, and one to three target. Isn't
54:43that annoying? Sometimes life is like
54:45that, huh? Our entry was literally based
54:47on that demand area and price literally
54:50missed our entry. So be it. But it
54:52missed it by 0.3 pips. Slightly missed.
54:55Missed trade would already be 3% cuz
54:57that's what you do with continuation
54:58models. Oh well, no trade for us. That's
55:00just the luck. Sometimes maybe another
55:02broker because I'm looking at forex.com.
55:03Another broker could have tapped you in.
55:05But the point here is we understood the
55:08logic perfectly. And now where's the
55:10next target? Higher high. So now we see
55:12that
55:14the higher high is made on the higher
55:15time frame. Daily higher high now made.
55:18And New York reversal. But you can see
55:20it's very aggressive. No entry. And you
55:22know what? Depending on where it lands,
55:24I'll see if it's worthwhile trading.
55:25Asia range presents. If Asia respects
55:28this, okay, look, we're respecting that
55:29area. This is not really a day worth
55:31trading cuz we've come to that demand
55:33area. We've now formed a potential
55:35supply area. We have mixed structure.
55:37When we have mixed structure, we just
55:38need to find an inducement.
55:42And looks like that inducement was not
55:44an inducement we trade cuz it was a
55:45Frankfurt open inducement. And you can
55:47see 1.5 plus 3% 4.5% plus a mis trade
55:50which could have made a 7.5%. The point
55:52here is I could do this on and on. I
55:54could do this for hours. If you want to
55:55see me continue to do this series of
55:56dancing with price action, just let me
55:58know. But the key to all of this is
55:59watch all of the guides that I've made.
56:00Find the playlist where I have all of my
56:02guides from smart money traps to
56:04inducement guide to liquidity guide to
56:05market structure guide. I made so many
56:06guides. Watch all the guides so that for
56:08my next video you can be really
56:09attentive to understand how I'm applying
56:11all the theory to price action and you
56:13can profitably trade in just one or two
56:15weeks price action making 7% gain very
56:17conservatively very consistently and
56:20passing your profs and making consistent
56:21payoffs that you deserve. However, the
56:23key to it as always is that a restricted
56:25trader is a profitable trader.

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