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NQ Futures Price Action Commentary — Transcript

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0:00And I called out in one of my students'
0:02live streams.
0:04Sometimes I get caught up in the
0:06commentary
0:07of other students that
0:09part of my own students' live streams
0:12and
0:13we'll get to this in a moment. Let me
0:14see.
0:17top center Okay.
0:22I mentioned how I my interest was in
0:23this particular day's low. And that low
0:25comes in at 29,053.
0:29Okay? And I recently showed that a
0:31couple people say that I didn't make a
0:33mention of it, but there was about uh
0:361,200 to 1,500 people
0:38in Dasha or you know her as Lumi
0:40Traders'
0:42live stream on YouTube. And I said my
0:44only interest right now was this one
0:46here. And that was on this day.
0:48And we were trading around here.
0:50And we went all the way down
0:52to a low of
0:5529,033.
0:57So, it went exactly 20 handles below
0:59what I was aiming for, which is just
1:01simply based off this low. Now, you
1:03might question, well, why did you pick
1:05that low?
1:07What what what was so particular about
1:08that one? And why didn't you just simply
1:09go for this one here?
1:11Wouldn't that make more sense? Well, you
1:13got to consider what would what we've
1:14already done.
1:16We had this low
1:20pierced. So, we had a low, low, low, and
1:23then look how much energy we spent
1:25creating new all-time high.
1:27So, I think that
1:30looking for this low to be swept
1:33ahead of
1:36or during the week of
1:39the week prior to midterm elections in
1:41the US, which is what I'm highlighting
1:43here. So, that's this trading week here.
1:45Monday, yesterday's Tuesday, and today's
1:48Wednesday's trading.
1:50I'll get to that in a moment, but
1:52because we had already traded down to a
1:54level that my interest was in here,
1:56and because we've already taken sell
1:58side here, we had low, slightly lower
2:00low, lower low. So, we had three drives
2:03lower, failure to go lower, and then
2:05look how much price action we had to the
2:07upside.
2:09So,
2:11the way I interpret that is
2:13where is the swing low prior to that
2:16low?
2:17If we're coming from higher prices going
2:19lower,
2:21this is the first one you're going to
2:21come to.
2:24Obviously, breaking below that.
2:27But,
2:28on this particular day, my interest was
2:29only focused on that.
2:31Now, if it would have went below and
2:32went to there, so what?
2:34It doesn't matter.
2:36It so happens that my trade ideas were
2:38anchored to this particular low.
2:40And I'm giving you the logic as to why I
2:42did that, okay?
2:44Now, which brings us into
2:47what I was talking to my son about the
2:48other day.
2:56Yeah, last Thursday,
2:58the market trades down, hits my level,
3:00and then Friday, we open, we trade down
3:03below it once more, and then whip back
3:05above, and then we go into unchanged.
3:08Now, this week is the last trading week
3:11before we go into the US midterm
3:13elections.
3:14Now, it's standard practice, okay?
3:16You're going to find this more true than
3:18not.
3:19Uh they tend to kind of fluff the market
3:21up
3:23during the week or maybe potentially
3:25sometimes 2 weeks before
3:28the elections because they understand
3:30that
3:33the average person
3:35sees the stock market as a barometer for
3:38the economy. And then that's not true at
3:40all. It's absolutely It's one of the
3:42furthest things from the truth there is.
3:44So,
3:46by them fluffing it up,
3:48when we hit a key level that I gave out
3:51publicly,
3:52then we on Friday created a lower low
3:55than we did on Thursday.
3:57And then Monday
3:59we had a higher low. So, I was I was
4:01teaching my son
4:04how to read price
4:06and anticipate swing points. And then
4:09once they're confirmed after a
4:11particular key level and liquidity has
4:13been engaged as we indicate here
4:16on that particular day's low
4:18being in that 29,053.
4:22Once we hit it here on Thursday, we
4:24tried to go lower on Friday, came back
4:26above. So, we have a small little tiny
4:28indecision candle there.
4:31The body is you know relatively small.
4:34Look at the setting tab down here. See
4:37how it's toggled at one? And now it's
4:39off. You see that? What's happening
4:41here?
4:42The key is to watch this candlestick.
4:45Watch this candlestick. See how much of
4:47a wick this is?
4:48See how that is?
4:50Watch. Watch what happens.
4:53Smaller wick.
4:55Larger wick.
4:56Smaller wick.
4:58Larger wick.
4:59Also, take notice of the difference
5:02between where the body is here
5:04to here.
5:07All right. First of all, let's get one
5:08thing straight.
5:11The open is 29,116.5.
5:15The close is 29,117.75.
5:19Okay, so it's a very, very small up
5:22close body.
5:24But, the range we're going to show up in
5:27a little box here.
5:31To there. Okay? So, I'm highlighting
5:33this with
5:35I'll create some kind of
5:38contrast here.
5:41All right. So, that box represents the
5:44difference between
5:45the close on last Friday
5:49and the open
5:50on Monday
5:52with this setting toggled on.
5:55Now, when I toggle it you know, again
5:57off
5:58if I click that to it's no longer
5:59highlighted
6:01then
6:02we want to see the difference between
6:04the the height of this box between open
6:07of this candle and close of that candle.
6:10Why close of that candle? Because it
6:11closes higher than the open.
6:13Remember, look at this
6:15Look at the information. Open is 116.50
6:19and the close is 117.75.
6:21Okay, so it's 1.25
6:23or five ticks. One handle 0.25
6:28handles above where it opened. So, it's
6:30a slightly up close candle.
6:32Does
6:33this box represent the highest widest
6:36range
6:38or
6:40by me toggling this again, does it make
6:41it wider?
6:43Or does the candlesticks represent
6:45something smaller in terms of a gap?
6:47Well, let's see.
6:49Uh-oh, what happened?
6:54It's smaller.
6:56You see that?
6:57So, when it comes to looking at volume
7:01imbalances cuz that's what this is
7:04when there's a separation between the
7:05bodies even though there's a wick
7:06bridging the two candlesticks together
7:11this wick
7:12engages this candlestick's body.
7:16But, this body opens
7:17higher than this body's close
7:20and no connection or touching occurs
7:24between these two specific candlestick
7:26bodies.
7:28I'm not talking about the wicks.
7:29Clearly, they they
7:30they spent some time in the same range
7:33if you incorporate the low of the wick,
7:35okay?
7:36But, what I'm trying to represent here
7:38is when I'm using the toggle on and off
7:41with the setting for settlement price
7:43cuz I get questions all the time. Why do
7:45you use it on? When do you use it off?
7:47What determines that? I'm looking at the
7:49representation of how the volume of
7:52balances popularly on the chart whether
7:54that's toggled on or off. Okay?
7:57So again, same thing as I mentioned in
7:59the most recent traders round up with
8:02kitten the gang.
8:03The if we look at wicks as we're doing
8:07here
8:09and here
8:10what I'm doing is the same thing. I'm
8:12looking at it. Where Where am I seeing
8:14the longest wick?
8:17That one.
8:19And it just so happens that it also
8:21corroborates the storyline behind
8:24this
8:26gap or volume imbalance between the
8:28bodies of last Friday and Monday.
8:31So what setting am I going to have on my
8:32chart? This one.
8:34Because it's showing a longer wick.
8:37See this right here? This wick. I'll
8:39I'll do the same thing I just did with
8:40that volume imbalance. I'm going to
8:42measure
8:44this.
8:46Okay?
8:47That's the wick.
8:49Okay? The premium side wick on last
8:53Friday's candle. Now if I toggle it
8:54again
8:56look what happens. The wick shortens.
9:00See that?
9:01So I'm I'm only interested in seeing the
9:04one setting that gives me the widest
9:07volume imbalance or there may not be a
9:09volume imbalance in two particular
9:11candles. Now which candles am I picking?
9:13I'm just getting the lay of the land
9:14where we're at. Okay? For instance, if
9:16we didn't have all this down here and
9:18this one was the only one I could see
9:19right away look looking at it.
9:23This one would not be chosen.
9:26This one would cuz it's it's wider
9:28between the two bodies.
9:30And other places in the chart like up
9:33here
9:34see this?
9:38Like see how wide much wider it gets?
9:41If I had something like this
9:45versus that,
9:47I would choose
9:49that setting.
9:50So, it's again it's corroborating this
9:53particular setting.
9:54You see what I'm saying? So, we're we're
9:55getting more information and more data
9:57suggesting what the algorithm is
10:00currently respecting. Sometimes
10:02you'll see where that's the setting is
10:06not to be toggled at all and just left
10:08like that.
10:09And I let the price action itself
10:11dictate
10:12when I have it on. Now, if there's ever
10:14a question where you really can't see
10:16any kind of
10:18discernible distinction between whether
10:20it's toggled on or off in relationship
10:23to volume imbalances or or the wicks
10:24that's being considered in in your
10:26analysis,
10:29then
10:32choose
10:34one setting.
10:36Pick the particular candles and ranges
10:37that you're looking for, measure them,
10:39grade them out, and then toggle it the
10:42opposite, and then get measurements on
10:44that, too.
10:45And then just watch it for a few hours,
10:46for a session
10:48intraday. And you'll see which one the
10:50market's reacting and keying off of and
10:53respecting.
10:54And then the other one that it's not so
10:56much respecting,
10:58just
10:59just you know, dismiss it. You remove it
11:01from your chart, and then you fine-tuned
11:03and calibrated your analysis on real
11:05market order flow. Okay?
11:07So, hopefully you learned something in
11:08that regard, but now let's go over to
11:13Again, Thursday's low here, Friday's
11:15lower low than Thursday's daily low, and
11:18then we had Monday's trading slightly
11:20higher low. At a time when we went to a
11:22key level I gave out publicly, 29,053.
11:26So, we
11:27hit that liquidity, and then we're
11:29entering the last week prior to US
11:33United States midterm elections, which
11:35is next Tuesday, November 3rd, 2026.
11:39So, I have that much data highlighted in
11:42yellow. And it just so happens that we
11:44opened, we traded down back into that
11:47key level once more, did not take out
11:49Friday's low, and then we ripped higher.
11:51Okay?
11:53So, if we have
11:55a swing low forming, and a swing low is
11:57just basically like this. Okay, we have
11:59that.
12:01And then we have
12:03Uh again, this is going to be a crude
12:04depiction. I apologize if
12:07only the best of uh
12:09production quality around here, folks.
12:13So, we have a swing low as a candle that
12:15creates a low, a lower low, but there's
12:18a key level down here it it's traded to.
12:20And then the next candlestick this has a
12:22slightly higher low.
12:24This is a is a swing low. Usually, if
12:27you're bullish and your analysis is on
12:29point, your own side, if you see these
12:31types of things form, candlestick number
12:33four, this is candlestick one,
12:34candlestick number two, candlestick
12:36number three, candlesticks four and or
12:39five should be bullish candles.
12:42That's how you should interpret it,
12:43okay?
12:44So,
12:45if we're reversing this,
12:49and we're looking for something bearish,
12:51some kind of a key level here,
12:53we have an up close candle,
12:56we have It doesn't necessarily have to
12:58be an up close candle, either. So, don't
12:59don't Don't read into what I just said
13:01there.
13:01It It's a candle with a high,
13:04and then a higher high than that of the
13:07previous.
13:08And then the next candle is a lower
13:10high. So, we have a high with two
13:14lower highs surrounding it.
13:17Candlestick number one, candlestick
13:18number two, candlestick number three.
13:20And then what that would indicate is if
13:22you're on side and you're bearish and
13:23you have the right key level that you
13:24traded up up that should be a premium
13:27sensitivity element in price action,
13:29something like um
13:32old liquidity
13:33or trading up into a bearish fair value
13:35gap or a bearish inversion fair value
13:37gap or a bearish breaker or a volume
13:40imbalance or institutional order flow
13:42entry drill or a reaper, anything that
13:46we would key off of, okay?
13:48Uh trade up into that
13:50and then candlestick one, two, and
13:51three, candlestick four and or five
13:54should be a bearish candle.
13:56If If those things don't indicate
13:58that is in fact true,
14:00you're probably misreading
14:03the underlying bias in price action and
14:05it might slightly go higher or
14:08completely tear off your face and go
14:09higher than what you thought it was
14:11going to do, which is in in itself intel
14:14and you're going to pay a premium for
14:15that if you take a loss and there's
14:17nothing to be afraid of in that regard
14:18because you're paying for good
14:19information, you're paying for good
14:21data.
14:22A loss is not something that you should
14:23be fearful of. It's just you're willing
14:26to pay a premium price with money
14:29for better intel.
14:32Trust me, you're going to have a better
14:34read on price action when you dismiss
14:36the emotional connection
14:38to taking losses.
14:40Whereas the general retail trader that
14:42is always
14:44predominately
14:45uh and perpetually looking for a way to
14:47avoid entirely losing money or losing on
14:50trades,
14:51when they take a loss, a less informed
14:53trader, a unskilled, a undisciplined, a
14:56trader without a model, a trader without
14:58experience just watching price action,
15:00reading it
15:01before trying to make money with it,
15:03when they take a loss,
15:05they lose all of
15:07their bearings and
15:09coordination, it discombobulates them,
15:12makes them confused and scared and they
15:15emotionally react with anger.
15:18A emotionally stable,
15:20more sound-minded,
15:23analyst,
15:24when they have it wrong and they get
15:26stopped out and they incur a loss
15:28monetarily,
15:30they view that as paying
15:32for more insight than they had prior to
15:35it.
15:36So, now they have a better
15:37understanding, a better feel
15:39for what price is really showing them.
15:41Their in Their indications may be that
15:43the market was going to go higher,
15:45but they get stopped out. So, now
15:47they're put in a position where they
15:48paid a price
15:50to now reevaluate their
15:54expectations on the marketplace. It
15:56forces them to go back to why they did
15:58what they did initially.
15:59And then do the things still hold true
16:01that started that first perspective on
16:04entry?
16:05Many times, because they're mature, they
16:08will see that something has changed.
16:10And that means that they either
16:12comfortably move to the sideline and do
16:13nothing,
16:14not fearfully,
16:16or they may in fact reverse and go the
16:19other direction.
16:20And there's nothing wrong with that.
16:21That's not chasing price. That's
16:23following a model.
16:25If the model's telling you you were
16:26wrong as the operator, because it's
16:28always operator error.
16:30A sound model that you spent time with
16:31and there's an edge to it, and you're
16:33going to know there's an edge if you do
16:34back testing and forward testing and
16:37then tape reading without money
16:39involved.
16:40Once you prove that your edge is there
16:42and you trust it and you understand it,
16:44there's no reason for you to be fearful
16:47of taking a loss, because if you lose,
16:51it's operator error.
16:54Because a sound model isn't expected to
16:55be a 100% model. There is no 100%
16:58models. They don't exist. That's a myth.
17:01Okay? Anyone who tells you you have a
17:03100% model is a liar.
17:05So, the idea is simply understanding
17:09where the probabilities lie.
17:11And where those probabilities lie and
17:13where your skill set matches,
17:17then the results over time are going to
17:20kind of like
17:21provide you a tapestry of progress
17:24and consistency or the lack thereof.
17:28And by having
17:31these periods of where we trade down the
17:33key levels that was given publicly
17:3529,005 I'm sorry 29,053
17:38we traded to it on two days here here
17:40showed no meaningful want to go lower.
17:44This
17:46candlestick if we grade this
17:53Okay, watch.
17:58I'm measuring the low of the uh
18:00candlestick up to
18:04the open.
18:05Okay, and by doing this
18:09I'm going to take that 53 level off. Now
18:11you can see
18:13this level 29,051.75.
18:17That's the consequent encouragement or
18:19midpoint of this wick.
18:21On the lower side of it so it's the the
18:23discount wick of Friday's daily
18:25candlestick.
18:27This wick is the premium wick of
18:30Friday's daily range candlestick. So
18:32we're measuring the high
18:34down to the close.
18:36And if you have your magnet toggled
18:38on
18:39TradingView to strong if you put your
18:42your fib right here and let go of it
18:43it'll automatically snap
18:46right to the nearest price level.
18:49And it's anchored to
18:51that and let's double check it now.
18:54The close is 29,117.75.
18:58Go up here double tap on the fib
19:02look at coordinates
19:03and you'll see that's in fact what it's
19:05toggled to. Okay?
19:08So now what that does is it gives me the
19:10consequent encouragement on Friday's
19:11daily wick
19:13The premium wick. So, that midpoint, all
19:15right? So, we have two
19:19wicks like this that are graded out.
19:21All right?
19:23If
19:25we anticipate the market trading higher,
19:26why? Because it's the week going into
19:28midterms
19:30for the election. And there's there's a
19:32slight tendency for them to want to
19:34fluff the market up. That means there's
19:35a slight tendency to have a modest
19:38bullish bias.
19:40Not always. It's not a panacea. It's not
19:42a be-all end-all. It's always going to
19:44be this way. It's just something that
19:45traders with maturity have recognized
19:47over the years when it comes to election
19:50time, whether it be midterm or
19:51presidential. Usually, there's all kinds
19:53of, you know, built-in,
19:55you know,
19:57well,
19:59let's just put it this way. They like to
20:00fluff up the numbers, they fluff up the
20:01market, and it makes everybody feel
20:03patriotic, and it makes the the
20:06administration in office
20:08kind of have something to brag about.
20:10Okay? And they don't want to have a down
20:12market where it's been crashing going
20:14into the election.
20:16It's just
20:17one more talking point that they can use
20:19against the administration that's in
20:21office, and the one that's trying to get
20:23in office can can use it when they're
20:24really both the same
20:26uni-party.
20:27But, it's the illusion of choice, right?
20:29So,
20:30now because we have two reference points
20:32here,
20:34okay? And we're we're looking for how
20:37this turning point
20:39could be materializing.
20:42We have two wicks
20:43graded out on Friday after a key level
20:46at 29,053
20:48was traded to.
20:49Now, we can take a look at this.
20:53We're going to
21:05set this.
21:06So, I'm going to get a consequent
21:07encroachment of two consequent
21:10encroachments on Friday's candle.
21:13New PD array.
21:15So, I'm sure you'll probably find this
21:16in Wyckoff.
21:20You're never going to find this in
21:21Wyckoff, but it's okay. I understand.
21:23It's always fun for me to twist the
21:25knife. ICT, twist it.
21:27All right. So, we want to anchor
21:30a fib from this level here and this
21:33level here. All right. But, right now
21:34it's presently anchored to that. So, we
21:36have to look at this level. Draw all
21:38your attention over to here. So, we want
21:4029,222.00.
21:43Okay?
21:58So, 29,222
22:02and we want this consequent encroachment
22:04next. So, that's 29,051.
22:1029,051.75.
22:15This is really complicated. If you're
22:17expecting me to do this, bro, I'm going
22:19to do something else. I'm going to just
22:20trust overbought over sold indicators.
22:23Okay?
22:24That's fine.
22:26But,
22:27all right. So,
22:32now we have a midpoint level.
22:36We're going to double check that.
22:3829,051.75.
22:41That's that level there.
22:42And 29,222.
22:45Yep, that's here. So, now we have this
22:4729,137
22:50even level, which is the midpoint of
22:52both of these consequent encroachment
22:53levels. Now, we're going to change the
22:55color this one
22:57to
22:59blue.
23:01All right. And then, we're also going to
23:02change this to a dashed line.
23:05So that way it'll look different. Okay,
23:07so I'm going to look different between
23:09the uh
23:13institutional crush level here
23:15and there.
23:18Keep this one off cuz it's a little
23:19confusing for right now.
23:22So we have a wick consequent crush in
23:24here and a wick consequent crush in here
23:26on the same individual daily candlestick
23:27and then we have Monday's trading during
23:29a time when we expect price to go
23:31higher. So now we can take this
23:32information and transpose that into our
23:36lower time frames and let me just
23:38double-check make sure that this is
23:39going to exist
23:41and populate on the 1-minute chart.
23:43And it will. Okay, good.
23:45Now before we do that, if in fact this
23:47market's going to go up during this
23:49yellow shaded area, which is the week
23:52prior to new uh the US midterm
23:55elections,
23:56next Tuesday, the 3rd of November, 2026,
24:00look what we have here.
24:03You see that?
24:04So now we have a range between this
24:06wick's low and this wick's high.
24:11And we're going to look at grading that.
24:18And these will be solid lines.
24:21And we'll make this green.
24:25That's a midpoint.
24:27Institutional crushment.
24:29And then we will use
24:31that and we're going to make them solid
24:32lines.
24:36And we'll make them thin. Okay? So now
24:39when we see these horizontal lines that
24:40are graded like this, what it's
24:42representing is this CB,
24:46which should act as
24:51like a fireman's ladder
24:53carrying price up
24:58with
24:59inversion fair value gap characteristics
25:02to it. Okay?
25:03So, what we're doing is we're blending
25:05very, very rich details
25:08from the daily chart
25:09just like the algorithm what we
25:11implement and use when we drop it on
25:13these lower time frames. And you'll see
25:14it's a laughing
25:16um
25:19it's a laughing stock, really, when you
25:20when you look at what people try to say,
25:23even the talking heads
25:25in this industry that have lots of uh
25:27letters after their name, PhD, piled
25:29higher and deeper,
25:31um CTA, P uh you know, PhDs and
25:35scientists and all these other people,
25:37they'll have all kinds of, you know,
25:38textbook explanations why price did
25:42something after the fact, but I'm I'm
25:43wanting you to see what I teach you,
25:47the logic is there.
25:49You can expect it, anticipate it, and
25:51then
25:52be able to forecast with it.
25:54And that's important, cuz as a trader,
25:56you have to forecast. You must forecast.
25:58You're not guessing, okay? You're you're
26:00predicting. And if you're reacting, that
26:03means you don't know what you're doing,
26:04and you're you just knee-jerk reaction
26:06like a reflex.
26:08The only time reflex is appropriate is
26:11when you're trying to protect your
26:12money. That means if you see something
26:14in your model, see something in your
26:15setup, see something in your
26:17framework for the trade idea that you
26:18implemented, if that has shifted or
26:20changed or now long no longer exists,
26:23then you must react.
26:26Then the reflex
26:28reaction would be
26:29close the trade, remove risk.
26:32Otherwise, we don't react we don't react
26:34to anything. We don't wait and see,
26:36okay?
26:37Wait and see is part of FA FO, and we
26:39don't trade with the FA FO model around
26:41here.
26:42If you don't know what that means, just
26:44Google
26:46>> [snorts]
26:46>> the uh
26:48inversion fair value gap here, and then
26:50once we get to this area here, that
26:52would be a an ideal area for like minor
26:54buy side.
26:56So, we look at that. It's a minor buy
26:58side liquidity pool.
27:01And
27:03that would suffice it enough. Now, if
27:04you want to go one step further, you
27:06could grade this wick here.
27:09Okay? And I'm not going to do that
27:11because it will have more horizontal
27:12lines, and I don't want to add more
27:16talking points cuz I think this is a
27:18rich tapestry here that we can use
27:20inside of intraday price action on the
27:221-minute chart. All right?
27:24So, let's drop down and we're going to
27:25take a look at what
27:28um
27:29price action was doing on Monday. Now,
27:32remember, these lines here are already
27:35established and determined
27:37at 5:00 p.m. last Friday. So, all
27:40weekend long, you could have had all
27:42these ideas implemented and laying on
27:44your chart.
27:46Okay?
27:46So, we'll drop down into a 1-minute time
27:48frame.
27:50Real quick, let me make sure this is
27:51going to show up
27:53on all time frames.
27:57Yep, that'll show up on 1 minute.
28:00So, now we're going to go to 1-minute
28:01time frame.
28:12We're going to scrub back to I know the
28:14calendar thing. Don't talk to me, boy.
28:17All you got to do, ICT, is just glue to
28:20the the little calendar thing down here.
28:21I know it's this right here. I know.
28:24Here, I'll satisfy you.
28:26Monday.
28:348:30s.
28:36Okay? You happy?
28:38All right. So, now we have
28:41price action utilizing
28:44this
28:47halfway point or consequent encroachment
28:49between Friday's daily candlesticks
28:52premium consequent encroachment of its
28:54wick
28:56and it's discount wick, it's consequent
28:57encroachment. So, we have those two two
28:59key levels there. You see that?
29:01And
29:02we also have
29:07the market trading
29:10inside of this area in here
29:13which we'll look at in a moment. But for
29:15now, just know that the market created a
29:18turning point potentially forming
29:21on Friday.
29:24There's Sunday, we open, we trade down
29:26slightly below that low there, then we
29:29rally up, we come back down in,
29:32we rally back up,
29:35fail to go lower,
29:37rallies higher,
29:39and now we're inside of that inversion
29:41fair value gap
29:43of the daily chart
29:45and that orange shaded area.
29:48Trades higher, bangs around, falls short
29:50of this octant, but eventually gets to
29:53it here. But look at the reaction off
29:55the octant levels and the quadrant
29:56levels. See that?
30:00Here.
30:03We're just slightly outside of it.
30:05Rallies back up.
30:07I'll get to these
30:09in a moment, but I just want to show you
30:11all these
30:11piece piece of information cuz this is
30:13what I have on my chart.
30:15Or not on my chart, on my uh
30:17my notepad and things I talked about
30:19with my son.
30:20Then we have this in here,
30:22and then we rally up,
30:25and now
30:27price is sitting right
30:33there.
30:34Okay?
30:37Now, let's go
30:38back into
30:40yesterday's price action.
30:43All right? And
30:45this yellow area here, we're going to
30:46remove that box cuz it's a little
30:48disgusting in terms of the color. It's
30:50just again highlighting the time
30:54which represents the week prior to
30:56leading into the US midterm elections
30:58next Tuesday, November 3rd, 2026. So,
31:02I'll take that off and I know it's much
31:03more pleasing now.
31:05You can see a lot better.
31:07And again, just real quick, you can see
31:09all the business here. Okay?
31:16All right. So, we have uh I was talking
31:17to my son about new day opening gaps
31:20and I told him I said, he he and all of
31:22you also have the
31:24the luxury of deciding how you're going
31:26to label your PD arrays. And you may
31:29look at this
31:31shaded area here and say, "Okay, what is
31:33that?" Well, it's a
31:35new day opening gap.
31:38When it formed
31:46where we settled on
31:49Monday at 4:59 p.m. Eastern time
31:53and where we opened at 6:00 p.m. same
31:55day
31:57but it becomes the new trading day
32:00through electronic trading hours. Okay,
32:03so electronic trading hours resumes at
32:056:00 p.m. Eastern time
32:07and where we opened
32:09and where we closed, that is the new day
32:11opening gap. All right?
32:15Because it's still technically Monday, I
32:17was explaining that
32:20you can label that Monday's new day
32:22opening gap. It doesn't matter if it's
32:23Monday
32:25or if you call it what I would like to
32:27refer to it as it's Tuesday's new day
32:29opening gap because now we're on
32:31Tuesday's electronic trading.
32:34Even though it's 6:00 p.m. Monday
32:36Eastern time in the US.
32:39Technically, all of this data in my
32:41mind, algorithmically goes towards
32:44Tuesday's electronic trading hour
32:46data. All right? So,
32:49if you have it set to Tuesday,
32:53new day opening gap or N dog as it has
32:55here, or if you have it Monday Monday or
32:57Tuesday, it doesn't make a difference.
32:58Just make sure you have it represented.
33:00All right?
33:02It's real important that you know that
33:06the first one that forms,
33:09okay? So, 6:00 p.m. Monday,
33:14you want to have that one.
33:16And and keep them
33:18for at least 2 weeks rotating in your
33:21chart. Always go back 2 weeks.
33:23And have them always projected
33:25throughout the entire the entire weekly
33:27range.
33:28Because they'll be used many times
33:30multiple times for trade setups,
33:32targets,
33:33um stop management. They're they're very
33:35very influential because it's the first
33:37one that formed for the week, okay? So,
33:39just to make it simple, in case you're
33:41confused about whether you should label
33:42it a Monday N dog or Tuesday N dog, just
33:45know that whatever you name it, the one
33:48that forms at 6:00 p.m. on Monday
33:51Eastern time,
33:53that's the one you carry across your
33:54entire trading week for present week and
33:58grab the one from the previous Monday at
34:016:00 p.m. Eastern time and have that
34:03across the entirety of your trading
34:04week. Because they will use them. And
34:06you do the same thing with Friday, okay?
34:09And you also want to do the same thing
34:10with your
34:12pre-trading hours opening range gaps.
34:14Same same premise, same principle.
34:17The Monday and Friday
34:19of the last 2 weeks. You want to make
34:20sure that you have them on your chart,
34:22okay?
34:23>> [sighs and gasps]
34:24>> All right. So, now let's get into the
34:25business of I'm not going to go over all
34:27this stuff. This stuff I talked to my
34:29son about and we worked with all that
34:31real time, but it's not important for
34:33you to have everything I give to my
34:35kids.
34:36I got to have something that's personal
34:38and unique for him, right?
34:39No, no, no.
34:43All right, so let's go over to and here
34:44here's new day opening gap here
34:47for Tuesday, but it's technically for
34:49Wednesday's trading electronic hours.
34:52All right, so here's the business uh
34:54yesterday. Uh
34:56Obviously, we had a comic strip
35:00event yesterday, typical stuff. They
35:02talk all kinds of smack, but they don't
35:03ever really do anything.
35:08I was asked by my
35:11dear one
35:12if I would accompany
35:14which means bring the wallet, bring the
35:16credit cards. Uh
35:18can I accompany
35:20and chaperone a housewares
35:24shopping spree.
35:26And gentlemen,
35:28I was really put through the mill
35:29yesterday. So, just I'm just just be
35:31tender with me today. I'm feeling
35:33extremely fragile still.
35:36No matter what answer I gave, it wasn't
35:38good enough. So, I hate when I'm asked,
35:40"Does this look good? Or do we Do we
35:43have this one? Do we need another one?
35:44We I think we need a whatever." So, it's
35:46it's more or less like
35:48you know, whatever you want to get.
35:50Whatever gets us out of the store as
35:51faster. That that's what I'm looking
35:53for, okay?
35:54>> [laughter]
35:54>> So, I only had time to do one thing,
35:57okay? And the one thing I did was
36:01If you measure the pre-market session
36:03hours, which is what I teach is 7:00
36:05Eastern time a.m.
36:08to 9:00 a.m. Eastern time.
36:10So, let's view that vertically here.
36:13That's here and
36:26So,
36:27this range specifically dealing with
36:31this candlestick's low
36:34note the time
36:36down here.
36:387:45 a.m. Eastern time.
36:41And this high
36:438:25 a.m. Eastern time.
36:45Always
36:47pardon [clears throat] me, always have
36:49your time set to New York.
36:50Cuz if you have it set to your local
36:51time you're you're confusing not knowing
36:55me if you're asking questions because I
36:56don't know what your local time is
36:59and I'm not in the habit of trying to
37:00calculate it to to make things germane
37:02for you to understand cuz the algorithm
37:04runs on New York time. So, if you're
37:07looking at your local time no matter no
37:08matter where you are geographically
37:09around this world um you're doing it
37:11incorrectly.
37:12So, just always calibrate your charts to
37:14New York local time and you'll be fine.
37:16So, 7:00 in the morning to 9:00 a.m.
37:17Those 2 hours, that's the pre-market
37:19trading hours. Now, you can make your
37:21entire career just trading inside that.
37:24But what we're looking for is
37:27we're at a time when the market's likely
37:28to do what?
37:30Go higher.
37:32Why? Because Monday created a higher low
37:34on the daily chart. So, that means now
37:36we have a valid verifiable
37:39swing low on the daily chart. After we
37:41traded to 29,053
37:43key level that I anchored attention to
37:46publicly
37:47we traded down to it on Thursday of last
37:49week, we traded down to it on Friday of
37:50last week, and then Monday
37:53we had a higher low.
37:55But now we have key levels
37:58that we can anchor in.
38:00And
38:02these horizontal lines here going across
38:04that, that's the consequent
38:05encouragement of that daily
38:07inversion fair value gap, the next
38:09octant above it upper quadrant, next
38:12octant
38:13and then the high of that inversion fair
38:14value gap on the daily chart.
38:17Here we have the range between 7:00 and
38:209:00. What is the profile
38:23not
38:24volume profile
38:25not market profile. Okay? What is the
38:28schematic? What is the
38:32type of price action
38:34that's occurring between 7:00 a.m.
38:38and nine.
38:40It's consolidation.
38:42Perfect.
38:43That is perfect for doing standard
38:46deviations as I taught when I was
38:48teaching primarily
38:50forex trading.
38:51Treat this entire range just like an
38:54Asian range or
38:56flout or Central Bank Dealers range.
38:59Same idea. Absolutely the same premise.
39:02The market is held in a consolidation or
39:04holding pattern.
39:05We're entering a time we're actually
39:07entered actually
39:09a time when the market should go up
39:10because we're going into US midterm
39:13elections.
39:15So, they're going to fluff up the market
39:17even though there is no economic news on
39:20Monday and Tuesday to really to speak
39:22of.
39:23It doesn't change the fact that all the
39:24underlying things I've indicated here
39:26are likely to see the market go higher.
39:29Now, I I couldn't
39:32be a part of every facet of going with
39:35the long.
39:36I I just
39:37I can't have my wife telling me,
39:39"Listen,
39:41you're on your phone and I'm trying to
39:42have conversation with you. We're out
39:43here doing this, doing that." I I just
39:45can't I can't get in an argument with
39:46her, okay? I'm just not going to do it
39:48and I'm certainly not going to do it in
39:50the stores, okay? So,
39:52the only time I had
39:54was able to facilitate a short that
39:57would set up the the long that leads to
40:00where price is today. So, I'll just
40:02leave you with this. If you take
40:06the low
40:08here, drag it up to the highest high.
40:11Now, this is not cherry-picking. This is
40:12not me creating something new. You've
40:14seen me teach this, folks. You've seen
40:16me teach it. You know it's it's exactly
40:19what I teach in regards to doing
40:21standard deviations on opening range
40:23gaps and on dealing ranges. Well, the
40:26dealing range is defined by
40:28time. So, we have 7:00 a.m. to 9:00, the
40:32highest high, the lowest low. When we're
40:34in consolidation makes the purest,
40:37the most reliable, the most
40:42dependable,
40:44trustworthy. I'm running out of
40:46you know, descriptive terms to to try to
40:48emphasize the trust factor, the comfort
40:51of me believing these things are going
40:55to have an impact on future delivery of
40:57price, okay?
40:58So, you can see right away that we have
41:03the fib level here. And now, what I'm
41:04going to do is I'm going to
41:09show you
41:10standard deviation
41:13negative 1.5.
41:15Okay, -1.5.
41:21I'm going to zoom out, crunch this up a
41:23little bit.
41:34Okay.
41:36Drops down into here, it rallies up and
41:39trades right into
41:41Where's my up up?
41:55Sorry.
41:56It's negative 0.5.
41:59I was looking at um
42:011.5
42:03on my notes and it
42:05discombobulated me, just messed me all
42:07up. So, here's the uh negative
42:140.5 level right here.
42:16So, what we're doing is that we're
42:17measuring
42:18this low
42:19to high
42:21and we're getting a measured move. It's
42:23all it is. It's a measured move of a
42:25time
42:27specific
42:28portion of range of price.
42:31It's ahead of
42:33the highest impact of
42:36volume coming into the marketplace,
42:37which is the US open at 9:30 to 10:00.
42:40That first 30 minutes, that's the
42:41opening range.
42:42Not opening range gap, but opening
42:44range.
42:45And when we have price create this nice
42:47little consolidation and then we drift
42:49lower
42:50we rally up
42:52right there at 9:41.
42:56We cross that line
42:57at 0.5.
43:00Okay, again 0.5. I've taught you this.
43:03I told you you can use this same premise
43:05on the opening range gaps to see how far
43:08we can move and accelerate outside of
43:10the opening range gap if there's going
43:12to be a follow-through or a trending
43:13day. Many times you can nail down the
43:15high or low of the day
43:16doing that projection like I'm doing
43:18here.
43:19But
43:21because I felt this is a little too
43:23quick to run and they left this low
43:28these lows and this low here, it just
43:31seems like they left sell-side just too
43:33intact and they took out the relative
43:36equal highs first. So, when we do this
43:40it's likely that they're going to come
43:41back and clear the
43:42the board and and knock out anyone
43:44that's
43:45long. So, now what we can do is we can
43:47go back to this low
43:48here
43:51frame that with sell-side liquidity.
44:02And we'll remove the box area, okay?
44:05So now what we have is we have a market
44:08that is sell side
44:10relative equal highs here. It rallied
44:13above that.
44:15And as soon as we cross that on the way
44:17back in
44:18I went short. Now,
44:20I wanted to get closer
44:25that price
44:27right here.
44:31But it just it just moved without me and
44:32I it's nothing I can do about it, okay?
44:34And you can beat yourself up and say,
44:35"Oh well, this that and the other
44:36thing." Don't worry about that kind of
44:37stuff. So, but now we have this
44:43wick here. So, whenever we get a wick
44:46forming
44:47where we think there's a turning point,
44:49always expect them to want to come back
44:50up into that wick again.
44:55If we look at
45:00I would say that here.
45:01>> [laughter]
45:02>> Execution.
45:05There you go.
45:07See where my fill is? It's down here.
45:10So, it ran to it and then quickly moved
45:13away from it. So, the time I had to
45:15react to that, okay?
45:18wasn't wasn't good enough. Yeah, I
45:20wasn't really looking at the chart at
45:22the very moment when it was running to
45:25it.
45:26I had thought I was comfortable enough
45:27to to sit there and let it come to me.
45:29It came and went, but I got in on the
45:31high candle.
45:33There's that, okay? So, if you look
45:34right in here, you'll see that's the
45:35fill.
45:36Now, because of that I have to have now
45:38a stop loss that's just above this wick.
45:41Why? Because
45:44it's gone to a key level. It's traded to
45:46it and it's already showing intra candle
45:50that it's likely to
45:53reverse. So, I'm taking all this
45:55business off
45:57and just showing you the midpoint level.
46:00Consequent encroachment.
46:02And this is a red level.
46:06And
46:07dashed. Okay, so here midpoint, let me
46:11broaden that up a little bit.
46:16So it can retrace back up into as much
46:18as the middle point of that wick to the
46:21candlestick's body, whether it be open
46:23or close indifference to if it's up
46:24close or down close candle.
46:26So what we can do is we can measure and
46:29get away from every candle.
46:31From here down to the body. And now I
46:33can
46:35show you that this
46:37should act as a premium array.
46:42And if you
46:44see this type of action where the market
46:46opens, trades up to it here, and it
46:48immediately gives up the ghost, and then
46:49the next candle really starts to slide,
46:52you're golden. Then at that time you can
46:54bring your stop loss down to a break
46:55even price point and cover some cost.
46:58Don't just go to break even. Give
46:59yourself I'm talking about like a pizza
47:00dinner or something. Brand new tire or
47:02something. And then
47:04watch price rip lower, and we have the
47:07sell side down here. But
47:09but
47:11because it's bullish primarily, because
47:15I know that the likelihood is this is a
47:17false run to get everybody chasing price
47:20higher because they like to react to
47:21price.
47:22Then they fold on them, come back down
47:25for the sell side here, and then the
47:287:00 a.m. to 9:00 a.m. sell side
47:29liquidity pool.
47:33There.
47:34See that?
47:35So if we go and look at what price did,
47:37it traded lower,
47:40lower, lower, and finally bang, right
47:43there. I want to get out at the low of
47:45the sell side plus a tick.
47:48That's what I'm looking to do. I'm
47:49trying to get out above.
47:53I don't care about getting below it and
47:54being perfect because I'm shorting a
47:58primarily bullish market condition.
48:01That's why I wanted a full exit there.
48:04And I was trading with very low
48:05leverage, only three contracts of a
48:07mini, not
48:09you know, 10, not 30, not 15, something
48:11like that. It's just very small, it's
48:13manageable.
48:15And
48:16I'm not upset about missing the low
48:18candle on my exit because the the logic
48:21is is I want to be out and you'll see
48:23look right here.
48:24You'll see there's my exit there at the
48:26low end, right above the sell-side
48:28liquidity pool. Because it could have
48:29very well done something like this where
48:31it would have
48:32just went by a little bit and it maybe
48:35it didn't fill me.
48:37Say my limit order, cuz I've I've had
48:39this many times. You've seen it happen
48:40when I was trading with a live brokerage
48:42firm account.
48:45Sometimes the limit orders
48:47don't execute even though price goes
48:49there and above it, too. If it doesn't
48:51fill you, there's nothing you can do
48:52about it except for if you trust that it
48:55should have got you out and it's going
48:56to likely reverse from what you were
48:58holding, just close it at market. Don't
49:00even worry about arguing about it, okay?
49:03So, that's the reason why I used that
49:05price point there to get out. And I
49:07don't care about the little tiny
49:09fluctuation we had below it and then
49:11ultimately we ripped higher.
49:14I taught this in
49:16um
49:18Let me take these levels off here and
49:20we're going to just
49:21look at what we have in regards to
49:25the inversion fair value gap
49:27portion of the run up.
49:29The drop down from here
49:32to here.
49:33If you grade that now
49:35while we're inside of a daily inversion
49:37fair value gap, that's why it's shaded
49:38in
49:39that color right now.
49:41We can grade this out.
49:48I'm almost done for the folks who are
49:50saying this is a long video.
49:53Guys got new stamina.
49:57What are you talking about ICT? Keep
49:58going for 4 hours, bro. I'm here for it.
50:01I brought rude snacks.
50:03All right. So, we have the dealing range
50:05from the high
50:06down to the lowest low, okay?
50:09We measured that out.
50:11By having that
50:13by having that, we can now look inside
50:15of all of this range here.
50:18And any down close bearish sibi
50:22Okay, I feel everybody got that has a
50:23down close.
50:26We can take that information
50:27and
50:29transpose those ranges to the right,
50:31carry them over to the right
50:33and show them as
50:35potentially inversion fair value gaps.
50:38Okay, so uh working backwards, we'll go
50:41to the left. As soon as we get to a sibi
50:43of any kind
50:44All right, we have one here. Let's look
50:45at the
50:48the close on that candlestick. The close
50:49comes in at 29,540.50.
50:53So, just remember 40.5. And the open on
50:56this candle here is 40.25. So, there's a
50:59small little volume imbalance there. So,
51:01you add that
51:02to that. Okay? [snorts] And then we drag
51:05that over.
51:09There.
51:12Make it the right color. We'll make it
51:14like that.
51:17So, there's there's a little bit of
51:18contrast between
51:20the background color here.
51:21And then same thing, we'll keep going
51:23over here. We have another one right
51:25there.
51:31And there's that.
51:32Okay?
51:35Midline.
51:37And then keep going to the left.
51:40There's a sibi here.
51:43So, I'm going to take this one here cuz
51:44we already saw that it really didn't
51:46support this one at all.
51:49So, it's going to borrow the range.
51:53That and we'll highlight this.
51:59And then keep going to the left. We're
52:02looking for sibi's. There's no sibi
52:03here. There's one right here.
52:11Yeah, that's an interesting reaction,
52:13isn't it?
52:14And then keep going to the left. We have
52:15another one here.
52:17It's got a volume imbalance right there.
52:19So, you have to be mindful of that.
52:24There you go.
52:27All right.
52:29And then finally we can blow off the top
52:31of that
52:32initial high that I showed it from and
52:34covered very close to the low, but
52:36utilizing sell side liquidity for 7:00
52:38to 9:00 a.m. dealing range.
52:40And then
52:42the market rally. I'm going to make this
52:43one just just a little bit different
52:45color just to contrast it.
52:50There you go.
52:51All right. So, we have inside the shadow
52:54of this one and this one. The bodies are
52:57there. So, it's respecting that. We open
53:00traded down the consequent quotient of
53:01this
53:03inversion fair value gap.
53:05Rallying up.
53:06And then we have the body closed inside
53:08of the
53:10the part of this gap there
53:13and this gap here that's highlighted.
53:15Okay? The two points at which it bleeds
53:18over into one another.
53:21Let me go close.
53:25See that in here?
53:27And the fact that we could not come back
53:28down and touch the midpoint.
53:31That level right there.
53:33That is strength. That's bullish. And
53:36then we want to see price rally up. We
53:38opened on this candlestick. We traded
53:39back down into this
53:41inversion fair value gap.
53:43And what I'm getting at here is once we
53:46have a suspected low and the market is
53:48likely to go higher, if you're on side
53:51you can go through the range that this
53:53was created on the move down. Every CB
53:55turn it into an inversion fair value gap
53:57and then does price support like we have
54:00here. Look at this.
54:02If I take the fib, I'm going to measure
54:04just the
54:05the halfway point between here and
54:07there. All right?
54:09And looking at
54:12consequent crunches, so we don't care
54:13about these levels here.
54:15I wish there was a faster way to just
54:16untoggle all these things.
54:19All right, so
54:20we'll make that purple so it can stand
54:22out.
54:25Right there.
54:26So that's this one here. What is that
54:28price? It comes in at 29,578.75.
54:32Okay, so 578.75.
54:35What's the low of this candlestick?
54:39>> No way, April.
54:41No way. Oh.
54:47>> I'm just ribbing the people that say
54:49stuff doesn't work, right?
54:52Come on. Show me your volume nodes.
54:56You volume nerds.
54:58Perfect delivery. Perfect. It trades
55:02down and then rips higher and then the
55:04same bit of business here. What do we
55:06got here? We have
55:08Again, we're grading this dealing range.
55:11Let me take this off cuz we're getting a
55:12little too many too many lines here.
55:15We have a
55:17locked in at 0.625
55:20and the price level comes in at 29,000
55:22615.25.
55:26And what is the low of this candlestick?
55:3229,615
55:33even, so one tick variance. Okay? The
55:37previous candle we like we traded to it
55:39there as well.
55:40It's 15, so it's one tick variant.
55:43Perfect as far as I'm concerned because
55:44it's doing what? It's not leaving the
55:46body on that.
55:48It's not leaving the body. So, price
55:50trading down into that octant, but
55:51keeping the body off of it and certainly
55:53not below it is supporting price.
55:56Rips higher, comes back down in. This
56:00inversion for a value gap doesn't get
56:01traded back down to its
56:03its consequent encroachment level. The
56:05bodies are certainly above it. Rallies
56:07up. Look at the bodies supporting that
56:09octant level
56:11at 0.
56:13875.
56:15And then finally tearing off through the
56:17initial high of the day.
56:20Rallies higher, trades up into an order
56:22block there.
56:23Rallies higher into this really just
56:26takes off rather handsomely.
56:30And that's the business.

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