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The ONE Liquidity Trading Pattern That Actually Works (Precise Entries) — Transcript

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0:00Last year I did over $100,000 in payouts
0:02whilst doing this.
0:03>> If you end up applying this model
0:04correctly and waiting for the higher
0:06probable ones, the win rate is
0:07incredible to say the least. And that's
0:09when the RR can get stupid. You don't
0:11even need to look at the chart. The
0:12hardest part for people is literally
0:14just this guy is the world's best
0:16liquidity trap trader with over $500,000
0:19in payouts and close to $800,000 views
0:22on his last Chart fanatics episode. If
0:24you don't see liquidity, you are the
0:26liquidity. I never like to predict where
0:28liquidity is going to be. Hydrolos. I
0:29simply let the market communicate that
0:31to me. Again, what do I mean by that is
0:33understanding. On this episode, he
0:35reveals his universal trading da Vinci
0:38model. No matter if you trade gold or
0:40NASDAQ, S&P or Euro USD, this strategy
0:44works. Here's your common retail
0:46mistake. Low taken, high taken. There's
0:48their VOS. Where do they want to be
0:49buying from? Once you guys learn to cut
0:51these kind of trades out of your plan,
0:52you'll avoid a lot of losses. This is
0:54literally a Da Vinci happening on the
0:55higher time frames and then a Da Vinci
0:57happening on the lower time frames. This
0:58is like textbook style. Beautiful. Not
1:00only does Mark go through it step by
1:02step, but he also trades live every week
1:05on chart fanatics live. Typically what
1:07happens is you'll just get a pullback
1:08and a continuation. Boom. Trade
1:09invalidated. The novice trader or the
1:11amateur trader is going to think there's
1:13highs and highs and lows all over my
1:14chart. What do I do? Right? Am I going
1:15to sell above this, buy below this? It's
1:17best in my opinion to literally just
1:19Welcome back everyone to Chart Fanatics,
1:21the go-to channel for all of your very
1:23best strategy and concept breakdowns
1:25with some of the very best traders in
1:27the world. Today we actually have a
1:29returning guest. His last episode did
1:31600,000
1:33views and climbing to this day. One of
1:36the first people to trade live and do
1:37live trading segments on Chartanax. He
1:40actually trades live on Chart Fanatics
1:42Live. And it's the one and only Marco
1:46Aset.
1:47Mark Shottny Marco Trades. I liked it.
1:49Thanks for the intro.
1:51>> I just doxed your name.
1:52>> Gay. My full name is out there now.
1:54Yeah, but I appreciate it, bro. I'm
1:55excited to do this. Um, ever since you
1:57hit me up and said, "Let's do a part
1:58two." I've been like, "Yo, let's do it.
2:00It's a good time." Well, today we're
2:01going to go through the universal model
2:05that you specifically absolutely crush
2:07gold with. Uh, high riskreward, high win
2:09rate, but if I'm not mistaken, this
2:12works on any time frame and any asset.
2:16Yeah. Yeah, 100%. So, this is going to
2:17be we're going to be tapping into a
2:19model I called the Da Vinci model. Um, I
2:22kind of just threw a title on it just so
2:24when I ever I take trades on it, I just
2:26title it Da Vinci. Um, but yeah, like
2:28you said, all markets, uh, that's the
2:31beauty about this. And of course, it is
2:32fractal to all time frames. That's
2:34something I preach about is everything
2:35that happens on the higher time frames
2:37goes all the way down to the lower. So
2:38sometimes this model is literally
2:40playing out on the daily time frame, for
2:41example, and then sometimes it's playing
2:43out all the way down to the 1 minute. So
2:45the easy thing about it um, to follow
2:47and grasp is again it's it's frapple
2:49from high to low, low to high, right?
2:51about it.
2:52>> And not only that, we're going to go
2:53through it step by step exactly how this
2:56presents itself, what to look for with
2:58chart examples as well of many, many
3:00trades that you've taken. And then just
3:03to top it off, we'll add in a live
3:05trading segment on top as well. I love
3:06it. Yeah. We'll tap into a lot of stuff.
3:08We got a lot coming. Also, didn't want
3:10to mention any people here that are new,
3:12we have the previous video. I thought
3:13they should definitely watch because we
3:14cover the foundations of liquidity, how
3:17I view the market. Um, but again, it's
3:19important to watch that video in order
3:20to understand the model that we're going
3:22to go through in this video. So, I just
3:24wanted to mention that first so we can
3:25avoid as much confusion as possible.
3:27>> We'll have that linked either on screen
3:28or in the description. So, if you don't
3:30understand liquidity at its core, uh,
3:33then check that out. But this now is
3:35going into the specific entry and exit
3:38criteria that Marco uses. So, where
3:40should we begin?
3:41>> We're going to try to make it a
3:42step-by-step process as much as
3:44possible. Um but there is core and
3:46important um things I look for in order
3:49to apply this model. Um so we're going
3:51to start off at this guy here. So rough
3:54idea is first again if you guys are new
3:58here you'll understand that I would view
4:00this high to have liquidity in the
4:02market. Okay. And then if the market
4:04sold off and let's just say we grabbed
4:06something from the left hand side aka an
4:07old low or we tapped into something um
4:10and now we want to see bullish moves
4:12back up to the upside. Okay. And again
4:13we have a target up here this high. Um
4:16now the model that I use again it's
4:19called the Da Vinci model. Um the
4:20important aspect uh the Da Vinci model
4:23is you want to identify what I call
4:26engineered liquidity. So in other words
4:29um in this example where this is a
4:30bullish scenario we want to see sellers
4:33enter the market. Okay. So what do I
4:35mean by that? Um, so just to make this
4:37as easy as possible, we won't go into
4:39the full Molly yet, but we'll talk about
4:41this specific step that's very
4:42important. So use the bed marker here.
4:46Once price comes up here and we start
4:49creating this high, again understand
4:52that overall we want to see price up to
4:54the upside. Okay, we have a level of
4:56liquidity we want price to target. Now
5:00what's happening here is when we travel
5:01to the upside okay when we're coming
5:03into this level of liquidity again that
5:05we want to see ran eventually look how
5:08we are respecting it printing this high
5:10and then the market starts to retrace
5:11now this is what I call
5:16try and write as best as possible here
5:19engineered liquidity okay again in other
5:22words it's just um in this bullish
5:24scenario this is sellers entering the
5:26market here now um We spoke about it
5:29again in the previous episode, but just
5:30to touch on it, I never like to predict
5:33where liquidity is going to be, highs or
5:35lows. I simply let the market
5:36communicate that to me. So again, what
5:38do I mean by that? Very important. This
5:41high here, respecting highs to the left
5:43hand side, this is the market telling me
5:45that we are building liquidity. And
5:47let's even just put a
5:51little dollar sign up here. We are
5:53building liquidity. Okay, orders above
5:56this high up here once we engineer
5:58liquidity. Okay, so then typically what
6:00happens? Sellers enter up here and the
6:03market will retrace. Now, typically I
6:05want to be buying down here. Okay, so
6:08entry
6:10would be down here. We're going to tap
6:11into all this in depth. My entry would
6:13be here and then we're we're going to
6:14look for that move back out to the
6:15upside. But the first and the most
6:17important step to this model is
6:20understanding engineer liquidity. And
6:22this is this right here. Okay, so again
6:23this is a bullish scenario. You guys can
6:25literally just invert this and flip it
6:26to look at a bearish scenario. But
6:28again, the most important part to this
6:30model. If you don't see engineered
6:32liquidity, it's not a da Vinci model.
6:34Okay. So that you say as well the power
6:36of this model and the whole concept as a
6:38whole is this is what will stop people
6:41getting stopped out unnecessarily
6:43getting caught in the wrong side of the
6:45market and almost the market tricking
6:47them to a degree because you can
6:50identify now engineered liquidity and
6:52identify what the market's actually
6:54trying to do.
6:55>> Yeah, exactly. And like I was talking
6:56about before, we're simply we're
6:58actually not even predicting what highs
7:00and lows need to go. We're letting the
7:01market literally, excuse me, we're
7:04letting the market communicate to us by
7:06printing this high up here, this
7:07engineered liquidity high. We're letting
7:09the market communicate to us that we are
7:11going to go back higher, but the sellers
7:13literally are going to enter here, build
7:14that liquidity, give that reason, that
7:16logic for price to move higher. And then
7:18again, we're going to look for those
7:19entries down here. And then when it
7:22comes to entry, no doubt we're going to
7:23go step by step into some of it. But
7:25just at this point, are we entering
7:26directly from here or is are you going
7:28to look for something further?
7:30>> Yeah. So this there's a couple we're
7:31going to dive into entries on the
7:33whiteboard. We'll talk about it more so
7:35you guys understand. And then of course
7:36in the charts uh but there's multiple
7:38ways on taking this entry. Again the the
7:40most important step and I need you guys
7:41to just understand this as a whole
7:43before we move forward is this engineer
7:45liquidity point. Seeing this reaction
7:47occur is the most important part. Once
7:49we engineer liquidity now the model is
7:51active and you can start looking for
7:53entries right back to the upside. And
7:55would you say because of the way the
7:56model's presented and that engineered
7:58liquidity is that what creates such a
8:00high risk-to-reward and high win rate?
8:02>> Yeah. Yeah, of course. So the thing is a
8:04lot of people let's just say for example
8:07um people are buying in this leg all the
8:08way to the upside wherever and like
8:10let's just say this is a higher time
8:11frame. People are looking for lower time
8:13entries on this bullish leg from low to
8:15high. Now what happens is they want to
8:17see price back up to these highs. So
8:19price will come up and then it respects
8:22and engineers and then comes back and
8:24takes them all out, right? Anybody that
8:26was buying here, they're taken out.
8:27Anybody that was buying here, they're
8:29taken out and then they'll take them all
8:30out and then it'll move bullish. So yes,
8:32the the beauty about this model is when
8:34it comes to the extreme, the
8:36risk-to-reward is just ridiculous.
8:38Sometimes I'm talking like 1 to 10 plus.
8:41Now, does this happen? We have to be
8:42realistic. Does this happen all the
8:44time? Doesn't happen all the time.
8:45However, these are this is the reality
8:47of the model and they do come along.
8:49Sometimes they'll come along a couple
8:51times in a week, sometimes once or twice
8:52in a month, right? You just got to take
8:54it for what it is.
8:54>> And that's what in regards to that,
8:56that's the high risk-to-reward, you
8:58know, the bigger trades you're talking
8:59about. But this model presents itself
9:01very frequently, right, on a day-to-day
9:03basis.
9:03>> Yeah. Yeah. 100%. Like I said, it it
9:05starts from the higher time frames. It's
9:06fractal to the lower. So you see this
9:08time frame or sorry you see this model
9:09playing out on the higher and then if
9:11you go down to the lower time frames of
9:12course you you could see maybe the model
9:13coming a couple times per day right if
9:16you have a couple different assets on
9:17the list.
9:19Okay. So now we'll talk about
9:23um how to basically take advantage of
9:25the model and actually enter the market,
9:27right? So again um and you know what,
9:30we'll actually touch on an extreme
9:32example to show you guys the the high RR
9:35that can come along with this system.
9:36Okay, so um let's just draw it up like
9:39this.
9:42Okay, so just like this piece of price
9:45action we've talked about on the flip
9:46side, right? We have highs intact up
9:47here, level of liquidity. Now it's going
9:49to start happening down here at the
9:50lows. So high is taken this low
9:53respecting this low and boom we have
9:55built liquidity once sorry wait once we
9:58move away boom now we built liquidity.
10:00So now you have liquidity below this
10:02low. So if you guys literally just look
10:04at it again if you just invert it. Look
10:05at the top. It's the exact same you can
10:07call it a pattern. It's the exact same
10:09logic just on the flip side. This is a
10:11bullish level of liquidity and you have
10:13sellers up there. Okay? So it's just the
10:15same one that flips side. Now price
10:16moves up to the upside and remember we
10:19come up to the highs and this is where
10:21we view sellers to be entering the
10:24market. You want to see engineer
10:26liquidity. So what happens is we print
10:28this. Let's just keep it black for now.
10:32So we come up and we go bearish. Okay.
10:35So again this would be your
10:43engineered liquidity. Okay. that high
10:45right there. And we can also just draw
10:47it on like this. We can say sellers are
10:49entering
10:52from an area on the left hand side.
10:54Okay. And again, if you guys aren't new
10:55here, previous video, this would just be
10:57a PO, a POI of some sort of a retail, an
11:00order block, whatever it is. Um, all we
11:02can understand is though this high here
11:04has been respecting highs on the left
11:06hand side. So, it is engineering
11:07liquidity. Okay, the first step to the
11:10model basically you want to see the
11:12engineer liquidity. Now the model's
11:14active and we want to start looking for
11:15entries. Now you're going to ask me,
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11:19liquidity. How do we take advantage? How
11:20do we actually enter the market right
11:22and target these highs? Trading
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13:17Now, look what I've drawn on down here
13:20at the low. We have high, low, high,
13:23low, and we move bullish to the upside.
13:25Okay? Leaving a level of liquidity to
13:27the downside. Now what happens is
13:29typically uninformed traders and let me
13:32just uh hopefully we can fit this here.
13:36People will start looking for buys down
13:37here. Okay, look you have high taken. So
13:40any retail traders um trading off
13:44structure Fibonacci whatever it is
13:46usually will be entering in some sort of
13:48areas in here.
13:52Okay, they want to be taking buys, but
13:54we understand we want to buy below lows,
13:56sell above highs.
13:58We want to see price typically what
14:00happens is you get a little false
14:01reaction and then price comes down to
14:03the low. Boom. As soon as, and this is
14:06very important right here, guys. Um, a
14:08lot of people like to kind of, and I
14:09call it overrefine and look for an
14:11imbalance in this low. In my opinion,
14:13unnecessary. This is providing you in a
14:15very high RR. You don't need to
14:18overrefini because typically when people
14:19overrefini you're going to start missing
14:21entries. So to keep it as easy as
14:23possible and that's I preach this on
14:25daily basis to keep this as easy as
14:27possible once this low right here is
14:29taken where the liquidity is you enter
14:31your buy position. So buy will basically
14:35be right there. So that's where we're
14:37entering a buy position. Typically what
14:39happens afterwards of course is the
14:42price will move all the way to the
14:43upside. Okay. So like with this concept,
14:48there's multiple levels to it, right? So
14:50when once this has been swept Yes. to
14:53the low essentially
14:56this brings in your sense. Yes. So then
14:59people are going to be entering sells
15:00all along here. It's already taken out
15:03buyers at this point. Yeah. Cuz it's
15:05taking a significant load to the ring
15:06below and all low to the left. So it's
15:08already taken out the buyers from that
15:10position, if you will. This then entices
15:12the sellers. This then
15:16uh also entices some buying here.
15:18>> Yep.
15:19>> Right. And when we get to here, more
15:23sellers still stacked. So then we're
15:25having this reaction and stacks even
15:26more here. Yep. Price then comes back
15:29down again. To your point, there'll be
15:32buyers trying to buy because of this
15:33structure. Yep. And then once price
15:36reacts and breaks that low, more sellers
15:38probably here, more sellers trying to
15:40sell here. Yep. when in reality at this
15:42point all buyers have been taken out and
15:45all that's left is the highs.
15:47>> Exactly. Exactly. So the the hardest and
15:50I don't even want want to say hard
15:51hardest part because people need
15:54patience in every single strategy in
15:55every single system out there but the
15:57the variable that people struggle with
16:00the most is just waiting for the setup
16:02to occur, right? waiting for these lows
16:04down here to get taken because per the
16:07model, per the da Vinci model, remember
16:10this can provide if you wait and you
16:11stay patient, this can provide you
16:13ridiculous RR and a ridiculous win rate
16:16sometimes. So if you just learn how to
16:17wait, you learn how to trust the level
16:19of liquidity here. Once that low is
16:21taken right there, that is your entry.
16:23And just to make this as easy again,
16:25entry here and stop loss is going to be
16:29below this low. So this is your stop
16:31loss down here. your stop loss is going
16:33to cover this low from the lefth hand
16:34side. So look, entry, stop loss, very
16:38tight risk. And look at the gain on the
16:40table. Um, if we could just use the
16:42blue, you have from entry all the way up
16:46to target, which would be this high.
16:48Think about it, where is the liquidity?
16:50Ask yourself, you have this high
16:52respecting all these highs from the
16:54lefth hand side. You want to be
16:55targeting that liquidity, right? Because
16:58let's just say we do end up moving
16:59bearish. We shouldn't move bearish until
17:01this high is taken, right? And again,
17:03you have all of this gain on the table
17:05for look how much risk. Very small, very
17:08small risk. I would say this is the most
17:10simple way of trading uh and
17:14understanding what's going on behind the
17:16candles and the general positioning
17:18within the market without having to get
17:20really complex with orderflow. Right?
17:22I'm sure orderflow uh could give some
17:25more insights but then equally there
17:27comes that it's really interesting when
17:29it comes to complexity because people
17:31say that you know once you understand
17:33all of those it's not as complex
17:35actually very simple uh but this is a
17:37really amazing way of you're you're
17:39taking that concept basically but
17:41presenting it using the candlesticks and
17:44really you're just I know people might
17:46not like to hear it but this is really
17:47just trading using one light right
17:50>> that is it's just horizontal lines right
17:52and
17:52literally letting price communicate to
17:55us where liquidity is. Right? So,
17:57everybody, and we talked about this
17:58briefly in the first episode, there's a
18:00lot of people out there like to say
18:02there's liquidity above every high and
18:03low, right? Right then and there, the
18:05the novice trader or the amateur trader
18:07is going to think there's highs and
18:08highs and lows all over my chart. What
18:10do I do? Right? Am I going to sell above
18:11this, buy below this? It's best, in my
18:13opinion, to literally just let the
18:15market communicate to you where the
18:17liquidity is. And that's what I mean by
18:19this point right here. This is the
18:21market communicating to you that we can
18:24we now have liquidity above these highs
18:26once we engineer liquidity the first
18:28step to the Da Vinci model.
18:30>> And in regards to this, what's very very
18:33interesting is, you know, when people
18:35hear high reward to risk potential, and
18:37you can see very clearly why that's the
18:39case, because you're getting such an
18:40optimum entry with an invalidation not
18:43far away, uh, with such upside potential
18:46in terms of where you're targeting.
18:48What's incredible is a lot of people
18:49when it comes to prop firms, they're
18:51always like, "Oh, you know, got to risk
18:522%, 3%, pass fast, get big payouts." But
18:55with this model, you could choose to do
18:57that, right? And run the risk that you
18:59have with prop firms in terms of like
19:01gambling and overdoing it. But instead,
19:03with this model, you could risk 0.5% to
19:060.75%
19:08and still make 10,000, $20,000 in
19:11payouts because of the asymmetric
19:14setup when it comes to the reward to
19:16risk. Um now what's the reality though
19:18with that in terms of very briefly when
19:21it comes to the entry do you have rules
19:23around let's say if it doesn't work out
19:25you know we're not sitting here saying
19:26this is 100% strike rate right
19:28>> so when it doesn't work out do you have
19:30rules around you know if it's maybe
19:32messing around the entry or it ends up
19:34obviously invalidating the setup like
19:35what sort of rules do you have in place
19:37of maybe max tries or what does that
19:39actually look like when it comes to you
19:41know executing this
19:42>> so okay from a risk perspective I I
19:44always have and everybody's different I
19:45have a specific amount a specific
19:46specific figure I'm willing to risk on a
19:48daily basis, of course. Now, from a
19:50technical perspective, yeah, let's just
19:52say, for example, and listen, like R
19:54says, and nothing's 100% out there.
19:56There's going to be times that the setup
19:57is invalidated. Um, but I'm telling you,
20:00actually, if you end up applying this
20:01model correctly and waiting for the
20:03higher probable ones, the win rate on
20:05this specific model is um it's
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22:00at Apex today. Let's get back to the
22:03episode. And don't take my word for it.
22:05Study the model and go look at the
22:07charts and you guys will see exactly
22:08what I mean. However, going back to like
22:10an invalidation kind of look, let's just
22:11say price comes down and sweeps out this
22:13low, then I need to wait for something
22:15like this to occur again, right? I need
22:17to see early buyers induce in the
22:18market. I need to see those early buyers
22:20taken out and then I will look for my
22:21entry again. And the reason why I'm
22:23saying that is because we still have
22:25liquid to the upside. Meaning, okay,
22:27maybe we were early. That's fine. But it
22:29does not mean the direction in the bias,
22:31the idea is incorrect.
22:34>> And just to be clear as well, this
22:36entire model would just be flipped
22:38upside down for a short.
22:40>> Oh, 100%. Yeah, this this exact model
22:42right here would literally just be
22:44inverted. Um
22:46Yeah. Yeah. There's going to be we're
22:47going to look at bearish examples as
22:49well just to train the eyes as much as
22:50possible. But yeah, nothing changes.
22:51That's the beauty of this model is
22:53sometimes like and you know what there's
22:55there's a perfect example we're going to
22:56go through in the charts afterwards. But
22:58sometimes I'll have like a Da Vinci
23:00model on the higher time frames that's
23:01providing me my direction, providing me
23:03my bias, and then I'll have a Da Vinci
23:06model playing out on the lower time
23:07frames providing me my entry. And that's
23:09why I feel like this model is like so
23:11simple but so powerful because it it can
23:13provide me my direction but it can also
23:15provide me my entry right higher time
23:17frames down to lower time frames and
23:19that's when the RR can get stupid. Okay,
23:22I don't want to spit out stupid numbers
23:24but like I said don't take my word for
23:25it. Go and look at the charts afterwards
23:26and you guys will see exactly what I
23:28mean and maybe you're going to be
23:29trading live later as well. So if people
23:31see it lies as well just before we move
23:33on and start breaking down step by step
23:35with the charts as well is you know we
23:37know it's fractal so it doesn't mean
23:39higher time frame to lower time frame
23:40but generally for what you do uh what
23:42time frame are you sort of operating
23:44this on?
23:46>> Uh great question. Um typically uh I I
23:49trade both markets futures and uh forex
23:52or CFD whatever you want to call it.
23:53Typically CFD I'm holding trades
23:55longterm because you're able to do that
23:57right over the course of a couple days
23:58maybe even a week's time. However, in
24:00the futures market, you got to close
24:01before market close. So, let's just use
24:03the futures market for example.
24:05Typically, we'll be looking at um a
24:07model to take an entry off the 1 minute,
24:095 minute. So, be really deep into the
24:11lower time frames and then targeting
24:13those I would say mid higher time
24:15frames. You can call it 15 minute, 1
24:17hour levels. Um and then of course you
24:20use CFDs where you can hold the trade to
24:22these higher time higher time frame
24:23targets without the restriction of
24:25closing early because of time. M
24:27sometimes I could have a a a Da Vinci
24:30model playing out on the daily time
24:31frame that takes days to play out,
24:33right? Um but yeah, be taking the
24:35entries sometimes. There's been times uh
24:37I think we can even cover an example
24:39that I was taking entries off the 1
24:40hour, the 4 hour still with like a 1 to
24:4210 RR. Um again, that's that's the
24:45beauty of CFDs. You can hold it, right?
24:47>> Cool. Uh so should we start breaking
24:48down in steps then?
24:50>> Yeah. So okay, let's uh let's clear up
24:52the board. Okay. So now we'll draw out
24:56um the Da Vinci model on a bearish
24:59scenario. Right? So
25:02I always draw the bullish ones. Now I
25:03got to think about Right.
25:08Okay. So we have a
25:12level of liquid to the downside. Now
25:15price ended up moving bullish and taking
25:18out a old high from the left. Wherever
25:20there is let's just say there's
25:20something over there. So we take on an
25:22old high from the left hand side. Now
25:24you want to be looking for entries to
25:26the downside. Okay. Now just like we
25:28spoke about before, typically what will
25:29happen is
25:33you have a level of liquidity built for
25:35us here, right? Low taken. You have a
25:38high approaching previous highs and then
25:40it sells off to the downside.
25:42>> When it comes to that being a level of
25:44liquidity for us, is there a specific
25:46reasoning behind that versus say here or
25:49that versus say here? Uh typically again
25:52it's the the pattern of waiting for a
25:55high to respect a previous high or in
25:57the flip side a low respecting the low.
25:59So if I could you don't want to screw
26:02yourself over and think about it from a
26:04pattern perspective meaning okay there's
26:06a high left now you want to wait for
26:08price to come above and sell here right
26:10away. Now, you got to ask yourself, why
26:12are you selling above that high? Right?
26:14You want to make sure there is liquidity
26:16above this high before selling because
26:17typically what happens is you'll just
26:18get a pullback and a continuation. Boom.
26:20Trade invalidated. So, you need to make
26:22sure again wait for the market to
26:24communicate to you that there's
26:25liquidity above this high. So,
26:33we have the market again running trading
26:35above an old high to the left hand side.
26:37We get a reaction down. Then the market
26:39starts printing internal I would call
26:41it. Okay, high respecting high. Okay,
26:44again I just said internal. I don't want
26:46you guys to get too spunked by that.
26:47It's very simple. You have a high
26:49respecting previous high and we sold
26:50off. Okay, now coming back down to the
26:53downside. All right, we're going to talk
26:55about this again just like you were on
26:57the bullish example. Now we'll be a
26:58bearish. So price is coming down to a
27:00level of liquidity we've already
27:02identified, right? We want to see price
27:04trade below these lows eventually. Aka,
27:06we want to sell into them. Right? Now,
27:08typically what happens is you have
27:10buyers looking for entries in this area.
27:13Okay? And all of a sudden, you're
27:16sitting there and you see the market
27:17react. Okay? Now, I hope you guys are
27:20all starting to see what I'm talking
27:21about here. This is going to be now
27:22known as our
27:27engineered liquidity. Okay? You have
27:31this low respecting liquidity from the
27:33lefth hand side, respecting previous
27:35lows and moving away telling us we are
27:37engineering liquidity right here. Again,
27:40first you can say it's first step. I
27:42guess the first first step it this will
27:44make more sense if you get if you watch
27:46the previous episode is making sure
27:47we're running something from the left
27:48hand side. That's what actually
27:49validates us looking for the sell of
27:51course. So I guess you could say first
27:53step taking out something from the lefth
27:55hand side. Okay, in this example a high.
27:57>> Mhm. Now the bearish setup is is
28:00basically valid for us. We want to look
28:01for those sells. Now the next step is
28:03you want to see the market sell off to
28:05the downside. Maybe induce some early
28:08sellers. Perfect. And then here's the
28:11engineer liquidity. Again, no engineer
28:13liquidity, no model. If we have
28:15engineered liquidity, then the model is
28:17active.
28:18>> Mhm. Okay. So from this point, we trade
28:21above the high, we sell off to the
28:22downside. We we create an internal
28:25liquidity point. price continues selling
28:27off and we engineer then you have the
28:29move back up. Boom. High is taken out
28:32and then lo and behold just like we
28:34spoke about it on the um bullish example
28:38markers here entry. Okay. And
28:45stop loss. Okay. And then that's when
28:48you get to capitalize on this whole move
28:50to the downside targets here.
28:53>> Exactly. And we're going to be targeting
28:55the liquidity left at this low.
28:56>> And then once that is taken does, you
29:00know, obviously it depends on the setup,
29:01depends on everything going on in the
29:03markets, but general premise wise, once
29:06that's taken, does that then open up
29:07potentially this to then be the next
29:09target?
29:11>> Yes, of course. Let's just say for an
29:12example here, we were overall on a on a
29:16bigger perspective, we were bullish.
29:18>> Mhm.
29:18>> Okay. Okay. And this was essentially
29:19what I would call a counterbias sell,
29:22short-term sell. Yes. Then yeah, you
29:24could typically look for a buy after
29:26this low is taken. But I need everybody
29:28to understand here, and this is
29:29something I preach on a daily basis,
29:31even on Turfanics Live, is we're not I'm
29:33not a pattern-based trader. Meaning, if
29:35you guys see this model playing out,
29:36you're not automatically buying below
29:38the lows in this example. You need to
29:40make sure you always have a reason, a
29:41logic for price to move to the upside.
29:43Is there highs intact? Right? Maybe in
29:45the past over here, whatever it is, is
29:46there highs intact? Is there a reason
29:48for price to run back up to the upside?
29:50Going. All right. So, yeah, if we are
29:53bullish overall, just to answer your
29:54question simply, yeah, of course, there
29:55maybe there could be a a buy scenario
29:57below these lows.
29:58>> Mhm. Cool. Should we go through it now
30:00step by step on the charts? Yeah, of
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30:43let's get back to the episode.
30:44>> So, we're going to be hopping in on
30:46gold. And actually, funnily enough, as
30:48we're recording this, record highs on
30:50gold. All right, I think we hit over
30:535,500. So, it's funny. We're going to go
30:54over gold. And to be honest with you
30:56guys, gold actually is my favorite asset
30:59to trade. Um, unfortunately, we're
31:01sitting in in times right now where it's
31:03at $5,500 and it's just rocking to the
31:06upside. And I'm not trying to buy that
31:07high. Um, and I'm not trying to sell the
31:09top, right? So, I'm simply waiting right
31:11now. However, still setups to be looked
31:14at um from relatively new price action.
31:16Um and let's look right at this um
31:19example right in front of us. So, first
31:21of all, what we're going to identify
31:22here is these highs. Okay. Now, from
31:26this point, you can see how we printed
31:27this high and we sold off to the
31:29downside. Okay. That's very important
31:31and that's what we were just talking
31:32about the whiteboard. Okay. That would
31:34be again probably what you could call
31:35the first step to this model, right?
31:37because in order for us to look for
31:38buys, we need to of course be taking
31:40something out from the left hand side.
31:41So there's that old low that we were
31:43talking about. Okay, perfect. From
31:45there, you can see we get a short-term
31:47pullback and then sell off again. Okay,
31:50now bear with me here cuz this is
31:51actually market open. So the price
31:53action looks a bit iffy, but
31:55nonetheless, we're going to go through
31:56this and make it as pretty as possible.
31:58Okay, right away I hope you guys can all
32:01see why I grabbed this high from the
32:04left-h hand side. Okay, look how we've
32:06had this point here and this point here.
32:09Respect previous highs. Okay, so again,
32:11this goes back to what I was talking
32:13about how I'm not guessing where
32:15liquidity is, right? I'm not saying
32:16there's liquidity above every high or
32:18below every low. No, I'm literally I'm
32:19literally letting the market communicate
32:21to me that there is liquidity above
32:23these highs. What do I mean by that?
32:25This example right here, we have these
32:27two swing points, these two highs
32:28respecting this high from the left hand
32:30side. Okay, it's very easy. From that
32:32point, we sell off. Okay. Again, we grab
32:35old lows. Perfect. From there,
32:39price trades back up to the upside.
32:41Okay. And you can see this was an old
32:44low left actually right at market open.
32:46Price comes back and sweeps it. Okay.
32:49Now, if you guys again hopefully
32:50hopefully you watched our first episode
32:52of chartics, you guys would understand
32:53that this would now be a low I would
32:55view not to have liquidity. Okay. What
32:59do I mean by that? It has simply swept
33:01out previous lows. You can say this low
33:03here and also lows over here and then
33:05we've went bullish. Okay. So it's a it's
33:08a low again I view to have no liquidity
33:10which is important for me. Okay. Now
33:14getting towards the most important part
33:16of the model of the da Vinci model and
33:18that's against identifying um the
33:21engineer liquidity and I hopefully you
33:22guys are starting to see this on your
33:24own. That's the goal here. We're trying
33:25to train the eyes as much as possible.
33:27But you can see how these highs in the
33:29lefth hand side, look at this equal
33:32highs. Okay? And of course, just to make
33:33this as easy as possible, we can
33:35actually just grab all of this, right?
33:36We've already identified that these
33:38highs are going to be a future target
33:40for us. Okay? Now, look what price does
33:42here. Very important. We have this high.
33:46We have this high respecting this whole
33:48liquidity zone. These highs we've
33:50already identified as a future target.
33:52Again, very important. So what we can do
33:54is we can literally just mark this on as
33:57our engineered liquidity.
34:00Okay, just like we were talking about
34:02the on the um on the whiteboard. Very
34:04important.
34:06Coincidentally, look on the flip side.
34:09We have left internal lows right here.
34:12Now why did I mark out this low? Same
34:15thing. We have this high again taken
34:17out. Price goes bearish, respects this
34:19lows and again goes bearishes again. low
34:22gone bullish respecting previous lows.
34:25I'm not predicting where price needs to
34:28run to. I'm letting the market
34:29communicate to me where price needs to
34:31run to. I grab out these lows and drag
34:34them across. Okay. So there you go. We
34:36have engineered liquidity aka more
34:38sellers entering the market here which
34:40we are going to target and then we move
34:43uh to the downside. We grab internal.
34:45Perfect. Now how do we enter? How do we
34:49participate participate in this move?
34:52We need to identify this whole scenarios
34:55again basically on the lower time
34:57frames. Okay. So
34:59sometimes what occurs is
35:02you would take an entry here on the run
35:05of liquidity just like we spoke about in
35:06the diagram with our stop below this
35:08low. Now in this example, we had a big
35:11what I I call a liquidity block, a low
35:13that doesn't hold any liquidity. So the
35:16stop loss is too big. when the stop loss
35:18is too big, the RR is shot in my opinion
35:20and I just don't take those trades. So,
35:22what I need to do is just wait for the
35:23lower time frame to develop an entry for
35:25me.
35:25>> So, in this particular example to to
35:27your point there, you have one nice
35:30smooth view with the with the mouse, but
35:33um the reason you mentioned that RR
35:35being shot is because generally you're
35:37mainly focused on targeting here, right?
35:39>> Yes. which you know to some people one
35:41to point one to 1.7 is is great but just
35:45with this uh asset class and how it's
35:48been even this trade would present
35:52relatively a low risk to a high reward
35:56that's outside the model in terms of
35:57target wise even if you were to trail
36:00even if you were to leave a runner fair
36:02in this market it could work out quite
36:04well uh but to your point obviously
36:06following the model with the rules as we
36:08want to, you know, as you said, this one
36:11in particular has a larger stop. So,
36:13some people might be okay with that, but
36:14what do you do then otherwise if you
36:16want to still take advantage of this?
36:18>> So, and that's a great point. Everyone's
36:20different at the end of the day. Some
36:21people are comfortable taking a lower
36:22RR, which to each their own. I always
36:24say that for myself, I understand that I
36:27perform the best. I make the the most
36:29money when my RRS is minimum 1 to three
36:32minimum. Um, and again, that's just
36:33found what I worked. Again, everybody's
36:35different. If 1 to 1.7 works for you,
36:37hey, go ahead. But for myself, I do want
36:39to see a higher R on the table. Now,
36:41what do I do? I need to identify a
36:44confirmationbased entry on the lower
36:46time frames. Okay, so we're going to
36:47dive into this price action right here.
36:53Okay, so now we're on the one minute
36:55chart. Um, and something I do want to
36:57speak about quick is there's a lot of
36:58stigma about the one minute chart. I'm
37:00not not actually on the one minute chart
37:02a whole lot, only typically in futures.
37:04But this given example here on gold,
37:06yes, the one minute time frame did
37:08provide the entry, but I don't want you
37:10guys to sit here being scared of the one
37:11minute time frame. Sometimes it will
37:13provide entries, sometimes it doesn't.
37:14It's just you take it for what it is. In
37:16this example, yes, the one minute did
37:18provide us entry. So, we're going to
37:19talk about this.
37:22We grab the lows and this is literally a
37:23da Vinci happening on the higher time
37:25frames and then a da Vinci happening on
37:27the lower time frames. This is like
37:28textbook stuff. Beautiful. So, again, we
37:31run an old low from the left. We are
37:32bullish. We want to see price to the
37:34upside. Okay. And remember the next step
37:36is we want to identify early buyers.
37:38Look low rand. Okay. Now look at this
37:42price action. This very very choppy PA
37:44on the way to the upside.
37:46>> Okay. We have all of this liquidity to
37:49the left.
37:53Okay. And not only this is just lower
37:54time frames. Bear in mind, don't forget
37:56the higher, right? Remember this
37:57engineer liquidity up here.
37:58>> Yeah. So any bearish reactions deem them
38:02to be false is what I call it and just
38:04shortlived just pullbacks. Okay. So what
38:06happens here and I'm going to mark this
38:07on what I usually do is I mark it on as
38:09a red box not an area I'd be trading
38:11from. This is me understanding and I
38:13hope you guys are seeing this that if we
38:15react here this is now known as
38:18engineered liquidity. Okay. So again now
38:21there's a da Vinci forming in front of
38:23us on the lower time frames. Okay. How
38:25do we get involved? Remember this low,
38:28deem it to not have liquidity. Okay,
38:30this price action, all of this. Okay, if
38:34you guys are good, I can't go any lower
38:36than the one minute time frame, but if
38:37you understand this price action, it is
38:39simply just this. That's all it's doing.
38:41>> Mhm.
38:42>> Right. You can call it a channel, you
38:44can call it structure, whatever it is,
38:46it's building liquidity. Now, how do I
38:48enter the market? You can see
38:51from here, this level was respected,
38:53which means there's going to be
38:55liquidity below here. And watch this. We
38:58run that last level of liquidity. Okay?
39:01Not just this low, not just this low,
39:03not this one, not this one, not this
39:04one. If you trail your eyes all the way
39:06to the extreme, it's going to be this
39:07low down here. And remember, we view
39:09this one, this last wick here, this last
39:11area to not hold liquidity. Okay? And
39:15this is just showing you guys the beauty
39:16of high how high the RR can be.
39:18Sometimes you have your entry as soon as
39:21the low gets stabbed. Okay, nothing
39:23else. As soon as it gets stabbed, stop
39:25loss goes below the low. And of course,
39:26this is going to be on a CFD chart.
39:28Let's give it a little bit of breathing
39:29room. Okay, stop loss goes below. This
39:32is with breathing room. Bear that in
39:33mind. And the target to the upside,
39:35you're looking at a 1 to 12. And if I
39:39just zoom out,
39:42there you go. Okay. And again, the
39:45beauty of this model is it happens on
39:48the higher time frame. Okay. Look,
39:50higher time frame for direction and then
39:52it happens again on the lower time frame
39:55for entry.
39:56Okay.
39:57>> And that's in a space of a few hours as
40:00well. It's not even a
40:00>> Yeah. I mean, look, if you an entry
40:02right here at 10:00 a.m. exactly, and
40:04target was hit in the afternoon. This is
40:07Eastern St. um EST. Uh so you're looking
40:10at two five hours and a possible one to
40:1312 opportunity.
40:15>> Okay.
40:16>> But like just let's zoom in on the entry
40:18uh where we chose our liquidity point
40:21just to really highlight it because I
40:22know we did it clearly on the the
40:24whiteboard but this is the beauty of
40:26what we try and do here is show the
40:27picture perfect on the whiteboard but
40:29then the reality. So it's good for us to
40:31now see the reality of you know trying
40:33to as you said train the eyes you know
40:35especially on the lower time frames. Um,
40:38so let's just like really zoom in on on
40:41this entry point just to
40:43100% be uh extra extra for that.
40:46>> So yeah, this is the one minute time
40:48frame. So again, I can't open it up any
40:49lower than this. When we go into other
40:51examples, you guys will see um this is
40:53just the nature of price action.
40:54Sometimes it it get I'm not going to go
40:55into the seconds time frame. However, if
40:58you guys are looking at this chart in
40:59front of us right now, you can see that
41:00we have a low printed, we move bullish.
41:03Okay, price ends up coming back and
41:04respecting this red box. So again, all
41:06that is right here is literally just
41:10that high taken, load respected. Very
41:13simple. It's all fractal all the way
41:14down to the 5-second if you want.
41:16Unnecessary, but you guys know what I'm
41:18getting at. And then after that, high
41:21taken, low respecting low. So liquidity,
41:25right? And then we move bullish, take
41:27out a high, low respecting low. So I
41:30hope you guys are starting to see where
41:30I'm coming from, right? High taken, low
41:33of respecting low, high ticket it, low
41:35respecting low. So, it's just, guys, all
41:37of this is a buildup. Mhm. Right. I've
41:40got to tell you something. Hundreds of
41:41thousands of traders have already made
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42:53monthly subscription. Let's get back to
42:56the episode.
42:56>> And you know what? Um, everybody's
42:58comfortable with whatever it is. So,
43:00what do I mean by that? Do you need the
43:02absolute extreme? Check this out. Even
43:04if you grab this load, for example,
43:06okay, remember the stop loss is the most
43:08important part. You need to make sure
43:09your stop loss covers here. Don't get
43:11greedy. Even if you didn't take the
43:13lowest point, look at the RR still. You
43:15are still catching a almost a one to
43:18five. Okay? And that's not even the
43:20lowest point. So even with a more
43:21conservative entry, you're still looking
43:23at almost a 1 to5 in 5 hours time. Okay.
43:27Um but again,
43:28>> bear in mind that was capping at the
43:29high.
43:30>> Yeah. Exact. Exactly. That's just
43:31capping at the at the highs here. And of
43:33course you keep looking even a 0.2 like
43:3620% uh your runner of your original
43:40position can do crazy numbers, right?
43:43And sometimes can even be the same or
43:46half or more than your original
43:48position. Hundreds. You know the beauty
43:50of having a high reward to risk ratio is
43:54it allows for that because even if you
43:55took majority of your volume off at one
43:56to three some people do that right they
43:59take off majority there but then that
44:00partial if it goes 1 to 10 15 20 then
44:04that normally that small partial is more
44:06or if not the same as the original one
44:08to three. So completely agree
44:10>> but these elements that we're talking
44:11about to your point that you said
44:12earlier everyone has their own
44:14personality. So some people will be, you
44:16know, better off using a low risk
44:18reward. Some will be better off using a
44:20higher one. The beauty in this
44:22particular model when making that
44:24decision is really the win rate won't
44:27change drastically. Normally high reward
44:29to risk means low win rate, right? Um
44:33but in this case because of these spe
44:35specifics around the model and when
44:37training the eyes and the patience has
44:39been developed to wait for the model to
44:41present itself before executing and then
44:44of course the discipline to execute
44:45according to the rules that low win rate
44:49doesn't need to be there
44:50>> right um which is incredible because
44:52it's very rare to find uh you know that
44:55high reward to risk ratio with a high
44:57win rate but this is how it's done.
44:59>> Yeah. my my honest truth about the in my
45:02perspective on that whole scenario of um
45:05the smaller the stop, the lower the RR.
45:07In some ways, it's correct. However, in
45:10my opinion, the reason that actually
45:11occurs is typically for a higher RR to
45:13occur, you need a lower time frame
45:15entry. Now, what happens is people go
45:17into lower time frames and they're
45:18they're more prone to make mistakes.
45:20That's just there's more price action,
45:22there's more um time being shown to you
45:24on the charts, so people are more prone
45:26to make mistakes. when mistakes occur
45:28lower our I mean uh the strike rate will
45:30naturally go down. So that's my opinion
45:32um and that's my perspective. However,
45:33if you learn and prioritize patience and
45:37discipline and focusing on the high
45:38probable setups, your are your sorry
45:41your strike rate won't get affected with
45:43this higher model. And um in terms of
45:47I'll ask towards the end actually this
45:49question. Uh let's keep let's blast
45:50through uh one sec but we got like 30
45:53minutes so we'll blast through all.
45:55>> Yeah, we'll go through we'll go through
45:56another. Yeah, just blast through it.
45:58We've uh Yeah, I don't like it. Perfect.
46:01>> All right. So, now we're back on gold
46:03again and I'm going to show you guys the
46:05beauty of um basically proving to you
46:08the model is
46:10fractal again to all time frames. So, it
46:12can go from the lower all the way to the
46:13higher. So, this will be an example of
46:15showing you guys even higher time frame
46:16entries. Okay. So, again, we'll just
46:18start. We can even just use the 15-minut
46:20time frame just to see all this price
46:21action right now. Um we can see how
46:24price from the highs. So again this is
46:26gold big selloff okay big big sell-off
46:29and we have swept all types of lows from
46:32the left hand side okay so any buyers in
46:34the market here once price sells below
46:37we understand that there is buyers that
46:38trading here they've been trapped so
46:40overall I do want to start seeing price
46:41back up to the upside okay we left the
46:43equals up here okay and then price
46:45action actually in current PA all this
46:48PA in front of us look at the amount of
46:50liquidity we were building at the high
46:51so we're going to briefly talk about all
46:53that um the reason behind this long the
46:55logic behind this long. Um, but we're
46:57going to focus on again the model here,
46:58the Da Vinci model. Okay, so what can we
47:01see? And I always again I would like to
47:03use red boxes here to kind of pinpoint
47:06all of this. We have the market tapping
47:09into this area once, twice. Look, then
47:12we go long. Okay, we go long off an area
47:14that had liquidity. Why did it have
47:16liquidity? We have low respecting low.
47:18Okay, and then we go long. Price comes
47:21up to the high and builds liquidity.
47:24Okay, so we have a level of liquidity
47:26just like we drew on the whiteboard. We
47:27have a level of liquidity we can look to
47:29target eventually. Then price sells off
47:31and we trade below an old low. Okay,
47:34again nothing changes just like we were
47:36talking about on the whiteboard. We
47:38trade below this old low. Perfect. From
47:40there we understand that there is
47:42liquidity above here. We want to target
47:44that. Okay. Now price runs these lows to
47:47the left hand side. We go bullish.
47:51This is going to be a trap area. We do
47:53not want to be selling from these areas.
47:54However, you can already see that we are
47:57starting to get a da Vinci. Okay, since
48:00we are respecting the highs, this would
48:01be known as a engineered liquidity
48:04point. So, we can just write quickly
48:06engineered liquidity.
48:09Perfect. And
48:12we need to see early buyers in the
48:14market, okay? In order for us to
48:15capitalize on this buy back out to the
48:17upside, we need to see early buyers. And
48:19look what happens here. We have what I
48:22would call a buildup of liquidity. Why
48:24is this a buildup? Lows taken. Okay. And
48:27then price comes up, takes the highs.
48:29Why is this important? This is a common
48:31retail pattern. Lows taken, highs taken,
48:34which means people want to be buying
48:36below the or sorry, buying above this
48:38low. I view this low to have liquidity.
48:41So, I want to buy below it. Okay, this
48:43is stuff we touched on in the previous
48:45episode, right? Okay, so if anybody is
48:47kind of shaking a bit here, rewatch
48:48previous episode or just watch it if you
48:50haven't yet. Um, again though, low is
48:52taken, which means early buyers are
48:54trapped. We want to see that occur.
48:56Coincidentally, we have a low to the
48:58left hand side, okay, that we want to be
49:02using as our basically a level to put
49:03our stop loss. So, check this out. We're
49:05going to have entry right at the low.
49:08Okay, remember I'm always buy once the
49:09liquidity is taken. I don't need to over
49:11refine and find an imbalance in here.
49:13Entry taken. Stop loss below the low and
49:18target back at the highs. Remember,
49:20we're not guessing where to target,
49:22okay? The market communicate that to us
49:24right here. High, respecting high. Okay?
49:28So, that's going to be our overall
49:29target. Okay? Don't get me wrong, you
49:31have a bunch of internal, everyone's
49:33different. You can if you're not
49:34comfortable holding full volume, maybe
49:36partial here, maybe partial up here,
49:38right? You have a bunch of highs to the
49:39left hand side to target. Okay? Now,
49:42following along with this price action
49:43because there's more than one entry here
49:45and there's a lot to talk about. Not
49:46going to spend a whole b bunch of time,
49:48but there's some good stuff you guys
49:50need to pay attention to. So, we move
49:52bullish to the upside. Okay? And
49:54remember,
49:59any bearish reactions, deem them to be
50:01false in a trap. This is now going to be
50:03known as hope hopefully you guys are
50:05starting to see this over and over,
50:06engineered liquidity. Okay? We sell off
50:09to the downside. Check this out. We trap
50:11buyers. Anyone buying above this low,
50:15they've been trapped. And look how price
50:16rallies to the upside and grabs what?
50:19The engineered liquidity. Okay, after
50:22that's taken, price goes bearish. But
50:24don't forget, guys, I can't stress this
50:26enough. Don't forget our higher time
50:27frame target here. So, if we do
50:32beautiful stuff, beautiful stuff. If we
50:33do react off this
50:37engineer liquidity, Da Vinci model
50:39intact. Okay, once we respect a move
50:41away any whenever you find a buy
50:44opportunity and I'm going to show you
50:45guys exactly where it's going to be a Da
50:47Vinci model and you want to be targeting
50:49the highs. Okay, just like we're
50:51initially were on this higher type or
50:52sorry this uh this first entry here.
50:54>> Okay, perfect. So, we sell off to the
50:58downside. Okay, we start trading below
51:00internal lows to the left. Okay, we grab
51:03this low. We move bullish. Okay, from
51:06there, check this out. We sell off. we
51:09create some internal points. So we come
51:11down, we respect something on the left
51:12hand side and we move bullish. So same
51:14scenario right here.
51:17Okay, same scenario is happening right
51:20here in front of our eyes. Okay, what do
51:22I mean by that? Price incre it creates
51:25all these internal points here and here
51:29and then you get a bullish push up
51:31taking out these highs. Why is that
51:34important? We have just induced buyers.
51:36It's a common retail concept of high
51:38taken out, pullback, and they want to
51:40buy this thing all the way up. Right? I
51:42view that to the early buyers. I want to
51:44see price below the low. Okay? And look,
51:47coincidentally speaking, just like we've
51:49been doing this whole time, you have
51:50another low. I call it a liquidity
51:53block. Um, we have another low that has
51:56spiked out previous lows. So, I don't
51:58view this low that needs to go. It
51:59doesn't need to get ran. So, again, I
52:01always buy once the lows are taken out.
52:03>> Very simple. stop goes below this low
52:06from the left hand side. Okay. And what
52:09are we targeting? You guys already know
52:10the answer to this. All the way back up
52:12to the upside just like that. So you
52:16have a possible 1 to 7 and 1/2 here and
52:19you have another possible 1 to 7 right
52:22here.
52:24Okay. And again it's the beauty about
52:26this is once you see it, you won't you
52:28won't unsee it. But any bearish this is
52:30very very important. Any bearish
52:32reaction is engineer liquidity, right?
52:34Look, it's the same thing happening over
52:37and over. Okay? And then you get this
52:39sell-off that provides, you can call it
52:41like your discount or whatever.
52:42>> I don't view it like that, but you get a
52:44pullback induce early buyers and we trap
52:46them. Boom. Take off to the upside.
52:49>> Cuz the beauty is as long as the low and
52:52the high of the model, so the low and
52:54the high of what you're looking for
52:56stays intact, the setup is valid. And
52:58when you know which side is being
53:00engineered, so in this case obviously to
53:02the highs, you know, you're looking at
53:04buyers. Yes. Right. And then so all you
53:06have to do then because then okay that's
53:08a relatively simple concept to follow
53:10along and this is a very simple model.
53:12However then as you say training the
53:14eyes have patience because what a lot of
53:17people would do if they're not using
53:18this technique but they have a similar
53:20structure in terms of targeting a high
53:22and they want to buy low, right? They
53:25might put a Fibonacci on, they might put
53:26on a range on, they might have a general
53:28premise of I want to buy below the 50%
53:30at the minimum. Uh but then it's too
53:33easy for them because that really leaves
53:35still such an open window. Uh which
53:37within there they'll probably have order
53:38blocks, spare value gaps, inverted fair
53:40value gaps, uh supply demand wherever so
53:43many, right? And then that's why
53:45sometimes people get the winning trade
53:46but they lost three four times before
53:48it. So then and the riskrewards probably
53:50much larger or at least let's say one to
53:52three. So they break even by the end of
53:53it, right? After all that work. While
53:55with this, you specifically have areas
53:59of liquidity to just wait for. That's
54:01it. And the hardest part for people is
54:02literally just wait. And we've spoken
54:05about the previous episodes. Sound like
54:06a broken record, but if you don't see
54:08liquidity, you are the liquidity. So
54:11when big moves happen, you wait. You
54:13wait for uh liquidity to get engineered,
54:15things clear up, and you take entries.
54:17And like just to show you guys the
54:19common mistake traders make, you have a
54:21high taken out here, right? And this is
54:22going to be an area based off structure
54:25that retail wants to take it long. Look
54:26at the reaction it gives for retail to
54:28go long, right? And then overall gives a
54:30false reaction and boom, traps again.
54:32This happens. High taken out, high taken
54:34out. Price temporarily, and we'll zoom
54:36in here.
54:38price temporarily respects this and goes
54:40long for
54:42two three hours or two hours and then
54:45boom you get the sell-off and we trap.
54:48Okay, this is the entry. Okay, and it's
54:50supported by this low from the left hand
54:53side. So that's the important part here
54:54guys. You guys can can see that every
54:56entry is repeatable. Every entry is
54:57systematic. The low here, that's where
55:00the stop loss goes, right? The low here,
55:02that's where the stop loss goes.
55:04>> So now we're going to hop into So we
55:06talked about gold. um showing you guys
55:08that it it works in the forex market,
55:10CFD market, the commodity, whatever you
55:11want to call it. Now, we're going to
55:12talk about NQ and how the Da Vinci model
55:15can be used um in the futures market
55:17because as we know, like I talked about
55:19before, it happens across all markets.
55:21All right. Um so, again, we're going to
55:22be talking about NQ here. Start off on
55:24the higher time frames. You can probably
55:26already see where I'm heading to here.
55:28Almost an exact duplicate of the the
55:30whiteboard examples we were going
55:32through, but price trades below an old
55:34low from the left-hand side. Okay, now
55:37that bullish idea is activated for us.
55:39We want to be looking for those buys.
55:41Okay, now if I open up this PA a little
55:42bit for us.
55:44Perfect. So you can see big selloff from
55:48the highs. P my cursor coming down and
55:50we sweep out lows from the left hand
55:52side. Perfect. Now
55:56check this out. Little possible extreme
55:58entry. Not a da Vinci, but still
56:00something to point out for you guys.
56:03You have price coming down all the way
56:05to this low and sweeping it, tapping
56:08into an area that we have not tapped
56:10into yet. Otherwise known as a low that
56:12did not have liquidity. Okay. Now,
56:15what's happening here is actually
56:17happening right in front of our eyes as
56:18well on the in the current idea, the
56:20current price action. What do I mean by
56:22that? Price has sweeped out a low, okay,
56:26creating this low that we view not to
56:28have liquidity. Okay. Now, in order for
56:31us to take advantage of price back up to
56:34the upside, we need to see price
56:36engineer liquidity first, right? And
56:38what do we have here? So, typically this
56:40is actually just like a POI on the
56:43higher time frames of retail, but this
56:44whole area here, right, is an area that
56:47sellers are going to be looking to take
56:49maybe confirmation entry entries off of
56:51or just entries as a whole, right? Maybe
56:53here and then these whole areas here.
56:55Okay? So what we can do is again we can
56:57just mark this on just to make this easy
56:59for you guys. Engineered liquidity.
57:01Okay. Any reactions in this area deem
57:04them to be false. Should be a pullback.
57:06And we're going to participate in the
57:07buys back up to the upside. Okay. We go
57:11bearish. Now identify where buyers are
57:14at. So we're going to open this up to
57:15the 5m minute to make sense of this as
57:17much as possible. Look to the left.
57:21Okay. Hopefully you guys are starting to
57:22see this here. High taken out. Okay.
57:24price goes bearish, taps into this whole
57:27area. Okay, and then back up to the
57:29upside it goes. What does that now told
57:31us? We have liquidity below these lows.
57:34Okay, now this is when we were talking
57:37about before. This is when patience is
57:38incredibly important. Okay, if you don't
57:41have patience and you don't trust where
57:42the liquidity is, you're going to get
57:44caught up in all of this kind of price
57:46action. You're going to take unnecessary
57:48L's. Okay, that's when the strike rate
57:50gets affected. However, if you've
57:53identified this level of liquidity, it's
57:55very simple. Wait for it to get taken.
57:58Okay, so this is an example, a great
58:00example of showing you guys for the
58:01people out there that can only trade the
58:03higher time frames. For example, if you
58:04guys are not able to be active on the
58:06lower time frames, perfect example for
58:08you guys. You have a level of liquidity
58:10marked out here, aka early buyers, you
58:14have a low down here that we can put our
58:16stop loss. Perfect. So, this is what
58:18it's going to start looking like. entry
58:20would be right at the low just like
58:22this. Stop loss is going to cover this
58:25low from the left hand side. So again
58:27for your higher time frame people out
58:28there that can't be active limit simple
58:31you set a limit at this liquidity point
58:32this low stop loss goes below you don't
58:35even need to look at the chart. Okay so
58:36this is why I wanted to use this example
58:38directly because show you guys that you
58:40don't need to stare at the charts the
58:42whole time. Okay so entry hopefully you
58:45guys are starting to see where we can
58:46target. You have equal highs left all
58:49the way back up here. Okay? And you also
58:51have these engineered liquidity highs on
58:54the way back up, which could be used as
58:55a partial point. All right? So again,
58:57whatever you guys are comfortable, if
58:58you guys can't hold one to five full
59:00volume, by all means, you guys can
59:02partial here, right? You're still
59:03capturing almost a 1 to four, which is
59:05great. Um because you as part of this
59:08model and because of this way of
59:10trading, you don't some people like take
59:13partials just a riskreward point, right?
59:15one to two, one to three, but you don't
59:17do that.
59:17>> No. And you know, it's something I've
59:19I've talked about in the past. I'm not
59:20the biggest fan of it. Typically, I
59:22think I'm analyzing the chart for a
59:24reason, right? I'm projecting possible
59:26areas, levels that price could run to.
59:28Why not take advantage of that analysis,
59:30right? And like I told you guys before,
59:32um if you guys do apply this model
59:34correctly,
59:35um these targets, these levels, they
59:39they will get hit and they will get ran
59:42to eventually, but they happen a lot.
59:44Like the strike rate of it hitting these
59:45areas is it's very high. Like I said,
59:48don't take my word for it. Go into the
59:50charts and identify. You guys will see
59:51that. For example, once this low gets
59:54taken, I know eventually this high will
59:56go. And I'm very very confident in that.
59:58Um, and it's something that maybe you
1:00:00just lack a little bit of confidence,
1:00:01but over over time, you guys will see if
1:00:03you practice holding volume, um, I would
1:00:07recommend removing that partially at 1
1:00:09to three or that small RR and just hold
1:00:11to those targets. That's when the
1:00:13profits drastically increase. And that's
1:00:15something that I did uh, a year, a year
1:00:17and a half ago. Um, once I started
1:00:19holding more volume, the profits did
1:00:21increase. Right.
1:00:23>> Right. Um and then again the only way
1:00:24you can start stomaching that is
1:00:25literally just doing it over and over,
1:00:27right? Um but again, great example here.
1:00:30You have multiple targets. You have this
1:00:32engineered liquidity point just like we
1:00:34talked about on the whiteboard. Very
1:00:35important here. Okay. And then of course
1:00:37you have the external highs being up
1:00:41here. Okay. So again just based off your
1:00:44guys have what you guys are comfortable
1:00:45with. You have engineer liquidity highs
1:00:47being a target and then the external
1:00:49point. If I play this out, you guys can
1:00:51see there's the entry trap in the early
1:00:53buyers. You guys participate
1:00:55and eventually
1:01:00>> I say eventually.
1:01:01>> Look, this is the reality of the market.
1:01:03>> Yeah, there you go. This is NQ and it's
1:01:04in Asia right now. So, typically price
1:01:06won't move too much. But if we just bump
1:01:07up a time frame, we'll speed this up a
1:01:10bit. And there you was there any other
1:01:13opportunities there? So, funnily enough,
1:01:15actually, while the replay was playing
1:01:17out, yes, there wasn't another
1:01:18opportunity. You can see how we are.
1:01:20What would we call this? Happy that you
1:01:22pointed that out actually to make me.
1:01:25>> Well, the funny thing is,
1:01:28um, you know, people ask me about how I
1:01:29trade because last year I did over
1:01:31$100,000 in payouts past doing this.
1:01:33That was on the side, more swing
1:01:35trading, or at least like a bit longer
1:01:37term. Uh, this year, well, January, I've
1:01:39already done 20,000 in payouts. Um, and
1:01:42I trade a lot of my thesis or foundation
1:01:44around this from you.
1:01:46>> That's awesome.
1:01:47>> That's awesome. And I just sprinkle my
1:01:48own stuff on there. And to be honest
1:01:49with you, I should probably remove some
1:01:50of my stuff because I think it just um,
1:01:52you cogs or gets in the way.
1:01:54>> Yeah, sometimes it's working out.
1:01:57>> I mean, you had six figures in pays and
1:01:59it's something's working.
1:02:00>> Um, yeah. Send the hubs. All right. So,
1:02:03here we go, guys. Same thing. We have
1:02:05engineer liquidity at the highs, right?
1:02:07If we sell off, um, again, it's just
1:02:09simply telling us we have a reason for
1:02:11price to push to the highs, right? Same
1:02:14thing from this point, price moves
1:02:16bearish, takes out an internal low. Same
1:02:19thing occurs. Check this out. We have
1:02:21highs taken, which induce buyers, and
1:02:23then we come down and trap them. Okay,
1:02:26what ends up happening here is we go
1:02:27bullish again, taking out highs,
1:02:29inducing buyers. Same thing, trapping
1:02:32them. And I believe it comes all the way
1:02:34down into what I call a
1:02:39there you go a liquidity block. Okay, a
1:02:43low that I view not to hold any
1:02:45liquidity. So you could have taken and
1:02:48look at the precision here. Sometimes it
1:02:50boggles my mind to this day. You could
1:02:51have taken a entry here.
1:02:55Stop loss needs to go below the low to
1:02:58the left hand side. This is always okay.
1:03:00Now, extreme entry here and target, I
1:03:02hope you guys can always see, is going
1:03:04to be the high. So, this isn't the best
1:03:05RR. However, listen, it's still great.
1:03:07Yeah, sometimes 1 to three and a half
1:03:08for people is is phenomenal. And don't
1:03:10get me wrong, it it still is great to
1:03:11this day. It's still a great R. Um, but
1:03:13again, just showing you guys how every
1:03:15single time the the Yeah, every single
1:03:19time price respects the highs, it's
1:03:21engineering liquidity, very important
1:03:23for the Da Vinci model to be in play.
1:03:25>> What do you do in terms of break even
1:03:27for this model? you know what do do you
1:03:29go break even at a certain point is the
1:03:31do you leave it like what's your rule
1:03:32set so yeah talking about managing
1:03:34trades it's actually very simple very
1:03:36straightforward for me and that's
1:03:37another thing why this model is so
1:03:39beautiful is it's just so repeatable so
1:03:41systematic for myself where as soon as I
1:03:43take this entry okay and price takes out
1:03:46highs some sort of highs I understand
1:03:49from a from the my system the persp the
1:03:52perspective of my system that buyers are
1:03:54induced some way so this high gets taken
1:03:56out Okay, this point right here, let's
1:03:59just say we're in this trade. We enter,
1:04:01high gets taken out, I roll my stop to
1:04:04break even. Okay, and I'm very extremely
1:04:07confident in my target getting hit. Now,
1:04:08does that mean it's going to hit 100% of
1:04:10the time? No. There's going to be times
1:04:11where I'm break even, and it is what it
1:04:12is. However, I'm very confident in this
1:04:14target getting hit. So, I'm going to
1:04:16hold my full volume to this target.
1:04:19Okay. Um, and yeah, that's that's
1:04:21basically it. Be here. I typically will
1:04:24hold majority volume to my targets. If I
1:04:27do partial, I do partial very very
1:04:29small. Right? So I'm talking 20 25% of
1:04:32my uh position and I do strongly
1:04:35recommend holding to those targets,
1:04:37right? Those areas that you project
1:04:39price to head to.
1:04:40>> Gotcha. So just like I spoke about with
1:04:42NQ, now we're going to hop into a Forex
1:04:45example. Um I trade this market
1:04:47actively. So, of course, uh this model
1:04:49is um it works and it can be applied to
1:04:51this this market. Uh this specific
1:04:54example, we're going to go through U.J.
1:04:56actually, funnily enough, a trade I just
1:04:58took this week. Um and I realized 6600
1:05:02and I still actually have partials. Just
1:05:04funny enough, just like RZ was talking
1:05:05about before, I still have partials
1:05:07running to higher time frame targets
1:05:09would could possibly bank me another
1:05:11$5,000. So, it could be north of 11
1:05:13grand. Um, we're going to have to see in
1:05:15maybe in f future episodes if it plays
1:05:17out, but um this comes out. Yeah, he
1:05:19will slap it in there.
1:05:20>> I did realize 6600s and it is a Da Vinci
1:05:23trade and it's a bearish example. So,
1:05:24it's going to be good for you guys to
1:05:26see. Yeah. So, this is a good good trade
1:05:28here. So,
1:05:29>> we have uh again this is UJ and we're
1:05:31going to start from the higher time
1:05:32frames, work our way down to the lower.
1:05:34We have highs taking out taken out on
1:05:37the left hand side here. Okay. Ever
1:05:39since then, we've been moving bearish.
1:05:41Okay. And you guys can already see there
1:05:43is a [ __ ] ton of targets to the
1:05:45downside. So I'm actually projecting
1:05:46this thing to move quite heavily to the
1:05:48downside. We'll have to wait and see if
1:05:49there's more trade opportunities. But
1:05:51nonetheless, the sell I took. So we sold
1:05:54off big sell-off, but therefore there
1:05:56was still
1:05:58levels to the left-hand side I want
1:06:00price to move to. Okay. And what do I
1:06:02mean by that? If I zoom into this price
1:06:04action, we can see
1:06:07a level of liquidity built. Why do I say
1:06:09this is a level of liquidity?
1:06:12low high taken, highs taken, lows
1:06:15respected, lows respected. So there's a
1:06:17level of liquidity, right? That's all it
1:06:19is. And I'm just identifying that and
1:06:20understanding that that could be a
1:06:22possible sell target for me. So if we go
1:06:25to live price action, you can see the
1:06:27cells played out. But let's talk about
1:06:29the actual setup as a whole. Very
1:06:31important stuff to cover here. So I'm
1:06:33going to drag this over
1:06:35now. All the low from the left hand side
1:06:37here. Okay, we haven't taken it. We're
1:06:39actually respecting it. So you guys
1:06:40should already know what that means.
1:06:42This low down here that we're starting
1:06:43to print is known as engineered
1:06:46liquidity. Okay, we are building
1:06:48liquidity here. Okay, from there we
1:06:51start moving bullish. And there's lots
1:06:53of good things to talk about here. If
1:06:55you look on the flip side and identify
1:06:57where sellers have been entering,
1:06:59hopefully you guys are starting to see
1:07:00this, but we have been taking entries at
1:07:02this high or sorry, we've been
1:07:03respecting this high for quite a while
1:07:05now, right? Why did I grab this point?
1:07:07I've literally let the market
1:07:09communicate to me to mark this high out.
1:07:11I haven't predicted it. I haven't
1:07:13guessed it. The market told me that this
1:07:15high respected this high from the left.
1:07:17So once it moves away, we have built
1:07:20reasoning for price to push up there. We
1:07:22have built liquidity. Whatever you guys
1:07:23want to call it, we have a reason for
1:07:25price to push above. Okay? And again,
1:07:28you can see here respects it. Respects
1:07:30it. Respects it spread. It taps into it
1:07:32a bunch. So that tells me mark out this
1:07:34high. I want to see price above it now.
1:07:37After price takes it out, we're going to
1:07:39look for sells. Okay. Now, how do we
1:07:41participate in this sell back down? I
1:07:43need to see what I would call a
1:07:46liquidity block. Right? You guys all
1:07:47know this by now. This is a high
1:07:51that has taken out a previous high.
1:07:56Okay? So, look, low taken, price comes
1:07:58up, takes that high out, and we sell off
1:08:00to the downside. Okay? So, this is going
1:08:02to be an area. Remember, there's no
1:08:04reason for price to take out
1:08:07this point right here. So, I'm going to
1:08:09use it to my advantage and take an entry
1:08:11off of it. So, I mark out this whole
1:08:12area. Now, my entry actually wasn't the
1:08:16top. And the reason being was because I
1:08:18set a limit. It was my bedtime and price
1:08:20started playing out. It was my bedtime.
1:08:22Um, price started playing out in London.
1:08:24I live in Canada. I live in Toronto. So,
1:08:26I'm not awake through 3:00 a.m. 4:00
1:08:28a.m. This is Yeah, there was a time
1:08:30unfortunately. That's a story for
1:08:32another day. But, um, nonetheless, this
1:08:34was a limit entry. Um, and this is the
1:08:36beauty of taking higher time frame
1:08:38entries sometimes. Um, and for myself,
1:08:39you can do this in the CFD market
1:08:41because you can hold it for a couple
1:08:42days, right? So, I can take advantage of
1:08:44that. So, entry. Now, check this out.
1:08:47This is where a lot of people make the
1:08:48mistake or make mistakes. There is a
1:08:51[ __ ] ton of liquidity to the downside,
1:08:53right? And price has taken out highs,
1:08:56comes down to the lows, this low
1:08:58respecting here, and moving bullish. So,
1:09:00we have built a ton of liquidity to the
1:09:02downside. It is a great confluence for
1:09:05us to see that because now price has a
1:09:06reason to go lower. So again, here is
1:09:09our engineered liquidity. Da Vinci
1:09:12models intact. We take our entry here,
1:09:14stop loss above. And now we're simply
1:09:17just riding this down to where the low
1:09:20from the left. Why? Cuz that is
1:09:21engineered liquidity. And there you go.
1:09:24Um 1 to five here. And yes, I'm looking
1:09:26for further downside. But just to keep
1:09:27it easy, simple and sweet for you guys,
1:09:29you have this low here being the target
1:09:33from the left hand side.
1:09:34>> Amazing. Very, very simple, very
1:09:36straightforward. Honestly,
1:09:37>> the one question I had earlier that I
1:09:39I'll come back to towards this
1:09:41>> is training the eyes is like the the
1:09:44theme throughout this episode like what
1:09:47does that actually look like and mean to
1:09:48you for the audience at home who want to
1:09:50develop this? Cuz no doubt I imagine
1:09:52pretty much everyone watching is going
1:09:54to want to try and implement this in
1:09:56some way. like what do they need to be
1:09:58doing in order to train their eyes and
1:10:00get that level of insight that you've
1:10:02shown?
1:10:02>> Yeah, that's that's a great question. Um
1:10:04I think training the eyes is incredibly
1:10:06important. U now what do I mean by that?
1:10:08Um repetition and consistency. So that's
1:10:11why we're me and RZ are sitting down and
1:10:13going through a bunch of examples right
1:10:14now and showing you how to apply this
1:10:18model over and over and over. And what
1:10:20that's what that's doing is it's
1:10:22training your eyes. And the importance
1:10:24behind that is if you train your eyes as
1:10:26much as possible meaning you apply this
1:10:29over and over and over and over. Now
1:10:31when you go into the live markets
1:10:33naturally you will start seeing the
1:10:35model play out in front of your eyes
1:10:36right however if you lack experience you
1:10:39lack repetition you're not training the
1:10:41eyes then how are you supposed to go to
1:10:42a live market and identify this model in
1:10:45lifetime right so that's why and I I use
1:10:47that term actually a lot training the
1:10:49eyes very important to because if you
1:10:51don't um then you're going to struggle
1:10:54to perform and you're going to struggle
1:10:55to identify these setups in live
1:10:57conditions right
1:10:58>> that's true now links for Marco will be
1:11:01in the description below. So, make sure
1:11:02you check those out, drop him a message,
1:11:04and thank him for the value that he has
1:11:05dropped today. Uh, other episodes are on
1:11:08screen. Talking of which, we'll link
1:11:09Marco's previous episode. Even at this
1:11:11point, he's already told you three, four
1:11:13times if you haven't seen it, but we'll
1:11:14do it one more time. Um, but make sure
1:11:16you hit subscribe and until next time,
1:11:19everyone, this has been Char Fanatics.
1:11:21Take it.

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