OTE BOOTCAMP LESSON 1: What is OTE? And what makes a range valid? — Transcript

Full transcript

1. 0:00Yo, what's good gangsters? This is the
2. 0:03first video where I'm actually doing the
3. 0:05boot camp. This is lesson one and we're
4. 0:07going to be going over what makes a
5. 0:09range valid and what really is OTE? For
6. 0:12the first ever lesson, you know, we're
7. 0:13going to start a little bit simple.
8. 0:15A little bit simple. Let me Let me pop a
9. 0:17Let me pop a Xan for this thing, gang.
10. 0:20Let me pop one.
11. 0:21Pop one.
12. 0:23Oh, crap.
13. 0:25Okay, good. Okay, good. We We chilling.
14. 0:27Okay, let's get on to it. So, really
15. 0:29really easy. Let's make my face low-key
16. 0:31smaller as well.
17. 0:33So, before we even go into the video,
18. 0:34let's go over the example today for bias
19. 0:36reasons, right? So, I was bearish. I
20. 0:38told everyone in my Discord this, right?
21. 0:40Why?
22. 0:41Well, number one, we're bearish. So,
23. 0:43we're only going to be looking at Well,
24. 0:44number one, we're bearish. Okay. Number
25. 0:46one, we was previously bearish, okay? We
26. 0:47had these huge dumps and as you can see,
27. 0:49each dump is doing what? It's reacting
28. 0:51back into ranges, whether we're using
29. 0:53the
30. 0:53as inducement like this one here.
31. 0:56As you can see, this range gets used as
32. 0:58inducement for the 79. Or if we're
33. 1:00genuinely just playing off of those
34. 1:02intermediate ranges, okay? Like
35. 1:04sometimes the ranges aren't going to be
36. 1:05fully filled like this. You see this
37. 1:07range, it doesn't get fully filled, you
38. 1:09know?
39. 1:10These are still valid ranges and that's
40. 1:11how we have this last one here. Now,
41. 1:13what makes this one valid, right?
42. 1:15Usually, the the main way to depict
43. 1:17ranges for being valid, right? On any
44. 1:19timeframe, so it can be higher
45. 1:21timeframe, lower timeframe, is because
46. 1:23we need to have the bias and the draw
47. 1:24aligned with the range and the direction
48. 1:26of the range. So, what's our draw for
49. 1:28this range? What do we have? We have
50. 1:29multiple draws. Number one, ES and NQ
51. 1:32didn't sweep this low, okay? Meaning
52. 1:34that it's still a valid target. Meaning
53. 1:36that if we're coming back up, it's most
54. 1:37likely just going to be a retracement
55. 1:38for that range entry. Just like we did
56. 1:409:30 up and what did we do? We tapped
57. 1:42off the 705, we landed the one-hour
58. 1:43order block. Also aligned with the
59. 1:45four-hour um fair value gap and I
60. 1:47believe we also had an SMT, if I'm not
61. 1:49wrong. So, everything was aligned
62. 1:50perfectly for that, okay? Simple,
63. 1:52simple, simple.
64. 1:54So, that's like the main bit. What even
65. 1:56is OTE aligned with anything at all,
66. 1:58right? If we don't have an aligned bias,
67. 2:00if we don't have a range that has
68. 2:02previously swept something, if we don't
69. 2:03have a range that is, you know,
70. 2:05not taken at all or not had a valid draw
71. 2:08beforehand, then that range isn't going
72. 2:10to be good to take off. But before we
73. 2:11even go into the lessons of the OTE,
74. 2:14let's kind of slow it down. Before we
75. 2:16even go into going in-depth and talk to
76. 2:19get a high win rate and how to increase
77. 2:21your RR, we need to understand the basic
78. 2:24things, which is what really makes these
79. 2:26ranges valid. So I can go over more
80. 2:28examples right now. Um for example,
81. 2:31why wouldn't a range like against the
82. 2:35SMT be valid, right? I've kind of just
83. 2:36told you right now. Why wouldn't this
84. 2:38range be valid for for longs? This is a
85. 2:401-minute range continuation. Why
86. 2:42wouldn't this range be valid? Okay?
87. 2:44Well, there's multiple reasons. Once
88. 2:46again, we're trading against the draw,
89. 2:48okay? And we're also trading with no
90. 2:50draw at all. Why would you expect price
91. 2:52to continue? Even though even though we
92. 2:54have a valid PD arrays within the range,
93. 2:56even though we previously swept Look, we
94. 2:59previously swept things out, okay? We
95. 3:01had everything on our, you know,
96. 3:03everything that looks good to be
97. 3:04happening to win a range. Yeah, it
98. 3:06didn't play. Well, number one, we have a
99. 3:07huge SMT against us, I believe, okay?
100. 3:10Number two, we tapped into the 705 of
101. 3:11the higher range. Always be wary of the
102. 3:13higher time frame OTE. It's going to
103. 3:15direct all the lower time frame OTEs.
104. 3:16That's really important, okay?
105. 3:19Uh and obviously number three,
106. 3:21um we've already we've already touched
107. 3:22that draw. Like this was technically our
108. 3:24draw, this high right here. Okay? That's
109. 3:25why every single range before that was
110. 3:27trading up to it. Need proof? Look at
111. 3:28this. Every single range pretty much was
112. 3:30playing up to it. Even if you had an
113. 3:32entry off this PD array here, range
114. 3:34plays, range plays off of the lower time
115. 3:36frame, too, again and again and again.
116. 3:38Range keeps playing, range keeps
117. 3:40playing. Then we get that uses
118. 3:41inducement. What do we do? We I think we
119. 3:43play to the 62 or probably
120. 3:46we edge the 62 in that scenario, and
121. 3:48then we continue playing to the range,
122. 3:49as you can see. Range plays. As you can
123. 3:52see, range plays. As you can see, then
124. 3:55we use this inducement on range plays
125. 3:56again.
126. 3:57As you can see, it's almost like a
127. 3:58pattern with ranges. We're going to have
128. 4:00the range play, the range play, then we
129. 4:01have inducement, then we have the range
130. 4:02play, the range play, and then we have
131. 4:03inducement. And I'll be going over
132. 4:05inducement in depth and how you can use
133. 4:07it to get
134. 4:08uh you know, more accuracy and more win
135. 4:10rates and high win rate on your ranges
136. 4:12as well.
137. 4:13Now, let's say in this scenario right
138. 4:15here, as you can see, this range might
139. 4:16be playing off the 79 or the 882. As you
140. 4:19can see, no drawing down, okay?
141. 4:21Now, why is this playing? I haven't even
142. 4:23looked to ES, but there's a small chance
143. 4:25you could have an SMT, for example.
144. 4:26Let's check.
145. 4:27Do we have an SMT?
146. 4:30The low is at 2045.
147. 4:34What time frame is this?
148. 4:37Uh 15 minute.
149. 4:39>> [snorts]
150. 4:41>> 2245.
151. 4:43So, we don't have an SMT. So, it's not
152. 4:45something I'd be confidently entering
153. 4:46on. If I saw this, I'd expect price to
154. 4:48come and react from this range cuz this
155. 4:49is a range that's valid. What makes this
156. 4:51range valid? Number one,
157. 4:53bias, okay? We still have the draws down
158. 4:55here, okay?
159. 4:56Number two, we swept out. Number three,
160. 4:58we don't have an SMT in this scenario. I
161. 5:00thought we did, okay? That's my
162. 5:01apologies. So, I'll delete that.
163. 5:03Uh and number four, everything is
164. 5:05aligned in that scenario. All your
165. 5:06ranges need to be going off the bias,
166. 5:08okay? That's the biggest thing in
167. 5:10acquiring that bias is all basic. You
168. 5:12don't have to go in depth and use
169. 5:14quarterly theory and higher time frame
170. 5:15SMTs and anything that's extremely in
171. 5:18depth to find a good bias. The best way
172. 5:20for me to find biases is to go on to go
173. 5:23on the daily chart and just see what
174. 5:24we're doing right now. Look, what do we
175. 5:25have in the daily?
176. 5:27Daily PD array, okay? Obvious. Let me
177. 5:30just delete all these drawings. Daily PD
178. 5:32array, obviously, what are we going to
179. 5:33do? We're bearish, we fill the PD array,
180. 5:35we dump.
181. 5:36Therefore, this range is valid. Simple,
182. 5:39okay? How do we distinguish where it's
183. 5:41going to reverse within that range? We
184. 5:42find the previous range, which on the
185. 5:44hourly,
186. 5:45we find the high. Why is this the high,
187. 5:47cuz it swept up before, okay?
188. 5:49We align the 705 with a PD array. The 62
189. 5:52had a PD array as well. We reacted from
190. 5:54the 62, gave you an entry down with a
191. 5:56range, and then we came back up. Used
192. 5:57this as a EL, higher time frame EL for
193. 6:00the entry. 705 plays, and then we look
194. 6:02for our entry. It's really simple. So,
195. 6:04that's like the first the first thing
196. 6:05ever. What really is OTE, and how do we
197. 6:07distinguish whether, you know, the range
198. 6:08is going to be valid or invalid? I spoke
199. 6:10a little bit fast. I can also do this
200. 6:11quite slow. I have like a free Discord
201. 6:13where we do group calls and group 70s,
202. 6:15so you guys can join that, too.
203. 6:17Uh peace out, guys.