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The Ultimate Liquidity Concepts Trading Guide (With Trade Setups) — Transcript

by Waqar Asim · 5,969 words · 865 segments · language en · Watch on YouTube

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0:00If you are a market structure trader, a
0:02supply and demand trader, a Fibonacci
0:04trader, a trend line trader, a support
0:06and resistance, or smart money concepts
0:08trader, a long list of the most common
0:10strategies. But have you ever wondered
0:12if you trade those strategies that you
0:14get the direction correct time and time
0:16again, but price just hits your stop
0:17loss by a few pips. At times, it might
0:19just feel like bad luck. This is part of
0:21the plan, or we can't win them all, or
0:23we have to actually question things and
0:25look deeper. Because you see, not
0:26everything is just bad luck. Sometimes
0:28it's a lack of understanding of the real
0:31language of price. And in my nine years
0:33of trading experience, I've seen this
0:35key language come to light and get
0:38stronger and stronger in recent years.
0:40And that is liquidity. And therefore,
0:42the more liquidity we see in the market,
0:44the bigger the opportunities that come
0:45right after it. And when I discovered
0:47the key components of what a liquidity
0:49sweep is, which I'm sure you're familiar
0:51with, versus an inducement, something
0:53that is similar, but the inducement is
0:55the one that's actually the one you
0:56need. Because with inducements, I'm not
0:58just talking about another strategy. I'm
1:00not just talking about another school of
1:01thought or theory. I'm talking about the
1:03primary driver of price, the language of
1:06price, and the only real truth in the
1:08market in my opinion. And in this video,
1:10I'm going to give you a full blueprint
1:12and guide breaking down exactly what a
1:14liquidity sweep and inducement is, the
1:16criteria, the types with case studies,
1:19examples. And we're going to take a look
1:20at it from an institutional perspective
1:22by truly understanding the narrative,
1:25intent, control, and why liquidity
1:27enters the market, how we can identify
1:29it, and who is contributing towards
1:31these liquidity pools. So, if you are
1:33tired of being in the 6 million trader
1:35category, that is the 97% of traders
1:37that consistently lose money, and you
1:39want to transition towards the edge that
1:41the top 3% of traders have, the 180,000
1:44of us that truly understand that the
1:46market is not a game of correlation.
1:48It's a game of causation. What causes
1:50the market to move? And the biggest
1:51principle of cause and effect will
1:53always be liquidity and inducements. So,
1:56welcome to the right side of the market.
1:58This is not just theory. This is
1:59actually how the game is played. So the
2:01liquidity trading guide as you can see
2:03in this mind map there's a lot of things
2:05we need to dissect from examples to set
2:07up criteria to what is the types of
2:09inducements and a whole flowchart of
2:11sequence of things you need to know and
2:13therefore I need you to have a pen and
2:14paper ready to take notes and ready to
2:16digest this liquidity trading guide.
2:18Before we get into it you might be
2:19thinking well why am I going to waste my
2:20time listening to this guy on the
2:21internet who is this guy in front of me
2:23and why should I trust what he's saying?
2:24So my background is actually qualifying
2:26as a dentist. I spent six years at
2:28university to gain my doctorate title.
2:30But by the time I had graduated, I was
2:32already a millionaire. Because I started
2:34trading within my first year of my
2:36degree. And because I didn't have the
2:37pressure of making money right away, I
2:39focused on learning strategies, learning
2:41intentions, and learning how the market
2:42really operates. And fast forward now 9
2:44years later from when I first started
2:46trading and having multiple millions of
2:48dollars to my name from the markets
2:50directly. If you haven't, go and check
2:52around this channel. But the main thing
2:53that I want you to understand is the way
2:54that I've been trading for the last year
2:56and a half is in a very specific way.
2:57And in the last year and a half, I've
2:59been documenting all of my trades live
3:01ahead of time with my public track
3:02record documenting on average 5 to 6%
3:05gain per month across a 1 and 1/2 year
3:07period to give a substantial gain. And
3:09you already know the power of prop
3:10firms. For example, if you had a million
3:12dollars in funding, which I've helped
3:13countless people do within my community,
3:15just 5% gain per month is smashing
3:18through a neurosurgeon, a dentist, a
3:20lawyer salary by a mile. This is not a
3:22game of crazy returns. Trading is a game
3:25of understanding high probability
3:26confluences, causations in the markets,
3:28small consistent profitable gains of 3,
3:31four, 5% per month, and having large
3:33capital. And that's exactly the road map
3:35I took to make the millions of dollars
3:36that I have in my 20s. And before I
3:38share all of the knowledge that I've
3:39eagerly prepared for you, what I want
3:41you to do is actually go ahead below
3:42this video and download a free resource
3:44that I have for you called the risk
3:46management OS. It will be free to use
3:48for the rest of your life. I don't need
3:49anything from you. is just important for
3:51you to understand that when it comes to
3:52risk management, one of the biggest
3:53problems that traders have is blowing
3:55their accounts, blowing their profit
3:56challenge in a single day or in just a
3:58few days because they don't have AI,
4:00they don't have systems and protocols in
4:02their favor to tell you what to do in a
4:03losing streak to what to do if you're 5%
4:05or 10% up on accounts. If you're going
4:07through a winning period, what should
4:09you do with your risk? How should you
4:10calculate your loss size adjusted for
4:12your journal and setup types? And what
4:14are the key metrics that you need? I
4:16created and engineered all of this
4:17something for myself that helped me
4:19build my public track record and give
4:21the trades that I gave live ahead of
4:22time. So go ahead and download that with
4:24the link below. Now let's get right into
4:25this video. So the liquidity trading
4:27guide I'm going to be focusing on the
4:29word inducement. Something that we
4:30pioneered and we've been using this term
4:32since 2019. And if you look back that
4:35word has now become a buzzword in the
4:36industry, but no one was saying it
4:38before 2019. And why I want to separate
4:40a liquidity sweep from inducement is
4:42because inducement has a lot more going
4:43on, a lot more importance. and the
4:45reality of the market. The idea behind
4:47an inducement is to incentivize the
4:48masses on the wrong side of the market.
4:50Meaning, you invite in liquidity through
4:52traps, through belief systems, and then
4:54take them out. But it's not just
4:55targeting one style of trader. That's
4:57not realistic in the market. It's going
4:58for maximum impact by taking out pretty
5:00much everyone in the market and only
5:03allowing the big players to remain. That
5:04is the difference between a random run
5:06of liquidity and a real meaningful
5:07inducement. And therefore, my whole
5:09trading system, every single trade model
5:11that I have is always around
5:12inducements. Whether it's a reversal
5:14model or a continuation model and with
5:16the hierarchy of confirmations I have
5:17from A+ all the way down to a C plus
5:19setup whether it's a counter trend
5:21interession trade or a protrend intraday
5:23trade I have everything categorized and
5:25every single one of my trade models it
5:27requires it mandates it's a necessity to
5:29have an inducement involved in my
5:31analysis and therefore you might be
5:32thinking well direction in the market is
5:34through market structure and if you've
5:35watched some of my previous videos I've
5:37already dispelled that that market
5:38structure is good it gives you an
5:39indication but it's not the be all and
5:41end all because you don't understand
5:42narrative control and intent and the
5:44right direction in the market is not
5:45always market structure. Because if you
5:47have the daily bullish and the 4hour
5:48bearish and the M15 bullish and the M1
5:50bearish, what do you do? You have all
5:51these mixed opinions. Well, the reality
5:53is direction does not equal market
5:55structure. Direction equals what
5:57liquidity says. Whether that's on a
5:59short-term horizon of the next 15
6:00minutes or a long-term horizon of the
6:02next few weeks, everything boils down to
6:04inducements and liquidity because that
6:06is the oxygen and fuel of the markets.
6:07And we're going to be exploring the
6:08types of inducements. But for example,
6:10if we focus on the medium inducement,
6:12there's going to be types that are going
6:13to be POI based, point of interest based
6:15where we are looking for a mitigation of
6:16a point of interest and a lower time
6:18frame confirmation to look for a
6:20reversal model. That's going to be your
6:21point of interest base. You can also
6:22have nonPOI based when we are not
6:24mitigating rather we are targeting
6:26liquidity or going towards a mitigation
6:28and therefore a continuation model can
6:30be found where you're not trading with
6:31points of interest or even market
6:32structure. You're simply trading with
6:34inducements and time and confirmation
6:36and those are the two variations that we
6:37have. And another way you can qualify
6:39your inducement, something we're going
6:40to spend a lot of time on, is time of
6:42day. Because the time of day is when you
6:44can find maximum volatility, pair that
6:46liquidity to make the best opportunity.
6:49And therefore, we find high probability
6:50zones where we can actually leverage our
6:52money with high risk reward with high
6:54probability, therefore a high win rate
6:56to actually find an edge in the market,
6:58which is the real job of a trader. Carve
7:00out high probability opportunity, find a
7:02data backed edge, find profit taking
7:03systems, and find risk management
7:05systems and control it all with your
7:06psychology. These are the key
7:08foundations and inducement and time
7:10connect all of these dots together
7:11because high probable environments
7:13equals the correct time to be trading.
7:14I'm going to be showing you the exact
7:16key windows later on and those are going
7:17to boil down to the London window
7:19opportunity and the New York window
7:20opportunity. I'm specifically speaking
7:21about Forex major pairs. Let's say Euro
7:23USD or GBPUSD. The exclusive pairs that
7:26I trade there are going to be key times
7:27within there not the full session key
7:29moments. For example, a Frankfurt open
7:31means something. Asia high Asia low
7:33means something. London open and the
7:35first hour means something crucial and
7:37then the New York open sometimes it can
7:39be a trap and then you have your New
7:40York key window and even a London close.
7:42These are your markers of the day and
7:43these frame the narrative and frame the
7:46daily cycle where then market structure
7:47and other things fall into place around
7:49these things and these key windows of
7:51time when you pair time of maximum
7:53volatility with the inducements that we
7:55seek then you can actually find your
7:56continuation models or your reversal
7:58models and these are going to be the
7:59types of trades that we look for
8:01specifically and there's going to be
8:02multiple variations and categories under
8:04here are going to be your exact trade
8:05models. So now let's get into some of
8:06the key components of the liquidity
8:08trading guide. First one is going to be
8:10the law of cause and effect. First of
8:12all, here a key thing that I need you to
8:14visualize is the elastic band effect.
8:17Now the elastic band effect is something
8:18that you need to ingrain in your mind
8:20because before you take a trade, you
8:21need to visualize has the elastic band
8:23been stretched and when I let go, is
8:25there going to be enough of a reaction
8:26to go exactly where it needs to go? If
8:28you are randomly at a support level, has
8:30the elastic band been stretched? If you
8:31are randomly at a trend line, if you are
8:33at a demand area, you have to think,
8:35okay, I'm in zones of interest. These
8:36are where traders usually get involved.
8:38But has my elastic band been stretched?
8:40Has it been let go? And is there enough
8:42movement in there for it to go towards
8:44the target? The elastic band effect will
8:46help you visualize the law of cause and
8:48effect. And the law of cause and effect
8:50in the market dictates that every
8:52significant move in the market.
8:53Therefore, effect is preceded by a
8:56buildup of tension. That is the cause.
8:58Like the elastic bite, you pull it back
9:00to get the cause. You get the tension.
9:02And then when you let it go, you have
9:03the effect which is a significant move
9:05in the market. And if you are wanting to
9:07trade any portion of the market, you
9:08should probably trade the significant
9:10moves in the market because it goes
9:11towards your direction in a fast manner
9:13with the real liquidity and
9:14institutional movements with high
9:16probability, high risk reward. You want
9:18to understand the law of cause and
9:19effect because every major move in the
9:20market proceeds with tension. So what is
9:23that accumulated pressure? The purpose
9:24of this video understanding liquidity
9:26and inducements. And therefore, for us
9:28to maximize this understanding, we have
9:29to think that the more the pulling back
9:31of that elastic band, what that means is
9:33more and more engagement of liquidity,
9:35more people getting into the market,
9:37more people invited in from their
9:39beliefs of their strategy and then more
9:40and more stop- losses taken out. The
9:42more stop- losses we take, the more
9:44violent the liquidity sweep, the
9:46inducement, the more likely it is to
9:47have a meaningful move in the market.
9:49And therefore for us to really
9:50understand how to maximize our trading,
9:51we have to understand where do these key
9:53liquidity zones, stop-loss zones lie and
9:56how can I understand the signatures of
9:57real inducements. This is the key to
9:59everything because once significant
10:01liquidity has been taken, that's when
10:02the market is going to move with
10:04intention, move with momentum and move
10:06towards real direction in the market and
10:08trading impulses as opposed to random
10:10choppy price action zones where you can
10:11caught up taking a lot of losses and end
10:13up frustrated because price is not doing
10:14anything. Because think about it, once
10:16you have stretched that elastic band and
10:17you let go, it doesn't just flop back to
10:19equilibrium. It doesn't just go back to
10:21normal. It goes back in equal force in
10:23the opposite direction. And that's when
10:25you have meaningful moves. And that's
10:26the whole point of an inducement. You're
10:28not just going back into the zone, back
10:30into a range, back into consolidation,
10:31back into choppy price action. No, you
10:34load up into the rocket and you fly with
10:36price. And that's the best way you
10:37should be trading because you're trading
10:38protrend impulses despite whatever
10:40market structure might be telling you.
10:42And therefore for us to really maximize
10:43this we need to know what is the cause
10:44and what is the effect. And we're going
10:46to be getting into this in all of these
10:48later on steps to understand what are
10:49the causes and how to qualify them to
10:51know what is a correct effect to then
10:52find how do we actually get into these
10:54trades. So here we need to understand
10:56what is manipulation. And manipulation
10:57is going to be of certain areas. The key
10:59ones that I like to focus on is support
11:01and resistance. The classic double
11:02bottom double top. What's that going to
11:04look like is typically speaking when
11:05price action is in a zone we are
11:07consolidating horizontally. You have
11:08multiple touches of a low or multiple
11:10touches of a high. Therefore, we have
11:12found a resistance level, a ceiling in
11:14price or a support level, a floor in
11:16price. And we know around these common
11:17areas, there going to be a lot of
11:18liquidity above of the sellers who are
11:20selling in these touches and putting
11:22their stop losses below or in the floor,
11:24the support level, you're going to have
11:26all of these buyers entering the market
11:28and their stop losses are going to be in
11:29this area. So, when we see price action
11:31like this, we know that right above and
11:32below there is liquidity. And therefore,
11:34support and resistance no longer means
11:36opportunity. It means trap because price
11:38can trade out to target it. And once
11:40it's taken it, the elastic band is
11:42stretched. Then it goes for the next
11:43pool. So this is like stretching the
11:45elastic band, creating that tension.
11:47Once you've grabbed all of that
11:48liquidity, you let go of the elastic
11:49band and it gives a forceful move to the
11:52other direction and targeting the next
11:53liquidity pool. And why does this
11:55happen? Because previously price could
11:57not break this level. It was holding in
11:58this area. But because of this
12:00inducement, this liquidity sweep,
12:01because of the elastic band, this was
12:03now enough force to now take out this
12:05previous floor in price and make a new
12:07low. And this doesn't only apply to
12:09support and resistance. This applies to
12:10trend line trading. And there's going to
12:12be many types of liquidity pools like
12:13high of previous day, low of previous
12:15day, high of previous week, low of
12:17previous week. In fact, even session
12:19highs and session lows, Asia ranges,
12:21major structures, intraday structures,
12:23all of these points that common areas
12:25that traders are going to be involved.
12:26Market structure zones, supply and
12:28demand zones, trend line zones, Asia
12:30high, Asia low. There's going to be so
12:32many areas where liquidity is going to
12:33be heavily pinned because of novice
12:35uninformed traders activity and
12:37therefore around all of these areas
12:38there's opportunity for tension to be
12:40created the elastic band to be stretched
12:42and therefore inducements to be found
12:43and therefore what that means if we
12:45connect inducement with time and
12:47confirmation that's the holy trinity the
12:49trifecta that I always speak about that
12:51is the key to profitable trading and
12:52what that can look like for example in a
12:54trend line trader it can be a ascending
12:56trend line you have multiple touches and
12:58then price is coming to the next touch
12:59it gives a small reaction to entice
13:02people to get people buying again. And
13:04we know that their stop losses are
13:05loading up all in this area around this
13:07trend line. Once they are invited in,
13:09they're excited. They're emotional.
13:10They're happy. They're jumping in, over
13:11risking, overleveraging. The market
13:13simply needs to go lower to grab their
13:15liquidity. But this is why it's an
13:16inducement because when the market does
13:17go lower, other traders get involved.
13:19They think, "Oh, we've had a bearish
13:20market structure. We've now got this
13:22supply zone. They're going to start
13:23selling from this area, hoping price
13:25goes lower. And therefore, where are
13:26their stop losses going to be?" All in
13:28this area. So when the market does an
13:29inducement pulls the elastic band back,
13:31we take the stop losses of the trend
13:33line buyers and then we take out the
13:35sellers in the other direction. So we
13:37took stop losses of this area and stop
13:39losses of the sellers. And that's why we
13:40call an inducement a real intentful move
13:42in the market because you trap everyone
13:44out. Market structure traders, trend
13:45lines, support, we get everyone out.
13:47Fibonacci, EMAs, doesn't matter what
13:49indicator you use. You don't understand
13:50inducements. You will fall frustrated
13:52and you'll fall to many losses because
13:54you don't understand that the market is
13:55doing the law of cause and effect. And
13:57my favorite one is going to be traps.
13:59And traps happen around key trap times
14:01like Frankfurt open. And they happen to
14:03specific strategies. My most preferred
14:05one is smart money's own traps. We made
14:07a whole guide on it. So go and watch
14:08that video. But we can see how we can
14:09understand where smart money traders
14:11interest is, where the liquidity is, and
14:12where smart money liquidity stop losses
14:14lie and those traps to induce smart
14:16money traders before real high quality
14:18moves. Go check that video out after
14:20this one. Now the key to all of this is
14:22understanding what is something that
14:23looks like an inducement and what is
14:25actually an inducement. You need to have
14:26qualifications. You need to have
14:28criteria and rules in place to say this
14:30is not a feeling. This is not a vague
14:32thing. This is a science backed by data.
14:34And we need to know exactly what we look
14:35for to qualify what is an inducement
14:37versus a random sweep of liquidity, a
14:39random pattern, a random head and
14:41shoulders. No, what is a real intentful
14:43move? And that's going to come down to
14:44breaks of structure. So for example, if
14:46we have a buildup of liquidity, we have
14:48a support level formed and the buyers
14:49are loading up on this reaction. Then
14:51the market goes low to grab their
14:53liquidity. We've stretched the elastic
14:54band. Now we've grabbed the liquidity.
14:56Now therefore we need an effect. We need
14:58price to actually give an effect.
14:59Meaning we take out structures. We have
15:01bullish breaks of structure. Because if
15:03the market did all the effort to take
15:04that liquidity and then just gave this
15:06little reaction that is not enough of an
15:07effect for us to be convinced that
15:09market actually took liquidity or that
15:11liquidity was just simply absorbed and
15:12not relevant because there's maybe too
15:13many sellers in the market that the
15:15buyer's liquidity getting taken out was
15:16not enough of a move for the real
15:18players. So we need to find confirmation
15:19law of cause and effect. You find the
15:21cause which is an inducement and you
15:23confirm it with an effect which is a
15:24break of structure. And once you see
15:26that break of structure then you come
15:28back to find an opportunity that you can
15:29trade and that's going to be with
15:31confirmation and time. And therefore
15:33that becomes a potential trading
15:34opportunity to buy after the inducement
15:36and after the mitigation of
15:38confirmation. That's something I'll
15:39break down in detail in just a moment.
15:41And to confirm this even more within
15:42these areas after the inducement I need
15:45to see this is in a key time window. We
15:47have a key lower time frame confirmation
15:48like a break of structure bullish. So we
15:50formed a lower high, lower low, higher
15:54high, higher low. And with the breaker
15:56structure, time confirmation, lower time
15:58frame confirmation. We also need to see
15:59other things like imbalances in this
16:01area. I need to see large bullish
16:03imbalances, large engulfing candles, and
16:05of course with momentum to show me that
16:07the elastic band being stretched and
16:08being let go led to a forceful and
16:10intentful move. Hence, my intent
16:12criteria. But just so that we don't fall
16:14victim to the trading patterns and what
16:16price visually looks like, we need to
16:17also have strict criteria of
16:19invalidations. Invalidations are going
16:20to be my key ones. Efficiency of the
16:22pullback. Watch the video made about
16:24that. Time once again is going to be a
16:25key invalidation for me, which is why I
16:27have key trading windows that I don't
16:28deviate away from. My London window, 1
16:30hour of the day, my New York window, 1
16:32hour of the day. These are the only two
16:33times in the day I'll trade. The rest of
16:35it is not for me. That way, I don't need
16:37to be glued to the charts, obsessed with
16:38every candle. I just need to look at the
16:40market for 2 hours a day. If an
16:41opportunity of an inducement with
16:43confirmation happens in my time window,
16:45then it's an opportunity for me. If it
16:46doesn't, it's not for me. Then the other
16:48thing you need to understand is
16:49counterinducement. And this is going to
16:50look like let's say you have a buildup
16:52over here. And then you have an
16:53inducement low and then a reaction in
16:55the other direction. So you've had a
16:56buildup, you've had an inducement and
16:58you've had a break of structure. So
16:59you're thinking, oh, perfect. Now I just
17:00need to look for a buy in this area and
17:02I just need to now do that trade that we
17:03mentioned earlier. Well, not quite as
17:05simple because you have to also consider
17:07the counter narrative which is what if
17:09this was a buildup of liquidity that
17:10resistance level and now this is the
17:12real inducement and price might now go
17:14lower come back over here and then go
17:16lower overall and therefore that's why
17:18we have these inflection zones again
17:20watch the videos I made about this topic
17:22I should not be trading in this area
17:24that is an inflection zone because
17:25inflection zones are areas where you can
17:27have a bullish outcome and a bearish
17:29outcome and they overlap in the same
17:31area. So, if you're in that
17:32non-confirmed inflection point, don't
17:34trade. And that's why we need to be
17:35aware of counter inducements. And then
17:36the last thing is structure or liquidity
17:38or smart money traps. And that's
17:40something a little bit more advanced.
17:41So, I'm not going to cover that in this
17:42video. But just know that there are many
17:44qualification criteras and many
17:46invalidations that you have to follow so
17:47that you're not just blindly following
17:49the markets as a pattern trader. You're
17:50actually taking this with data and
17:52seriousness. So, the types of
17:53inducements, we have major, medium, and
17:55minor types of inducements. So, let's
17:57first cover the major inducement. The
17:59major inducement is usually going to be
18:00on the daily or 4 hour or one hour time
18:02frame. The highest of time frames.
18:04First, we need to understand that we
18:05have to qualify a bearish market. So, a
18:07lower high that went on to make lower
18:09lows in the market. We know how to
18:11qualify the supply zones. We know what a
18:12supply zone is. Price comes into it and
18:14we start to get reactions. Price comes
18:16in, gives a reaction, but it's just
18:18bullish. We have higher high, higher
18:20low, higher high, higher low, higher
18:22high. So, we have not got rejection yet.
18:23That's showing us that the market is
18:25still bullish. Buyers are in control.
18:26Maybe because there is medium
18:28inducements happening along the way.
18:29I'll cover that later on. You can even
18:31see it's medium inducement, medium
18:32inducement. That means the buyers are in
18:34control. And what does it happen?
18:35Elastic band pulled cause effect bullish
18:37break. Pull back of the elastic band
18:39inducement cause effect being bullish
18:41break. But when we finally take out the
18:43supply zone, when we have an inducement
18:45structurally of all of that supply zone
18:47on the left, once that is taken out,
18:49then we have a real inducement. And what
18:51does that lead to? Let's zoom in on a
18:52smaller time frame. We see that price
18:54finally after doing these inducements
18:56here to push price higher to give these
18:58mitigations and inducements here to push
19:00price higher. Eventually we take out the
19:02whole supply zone. We have a major
19:04inducement over here grabbing the
19:05liquidity of that whole supply zone and
19:07then the elastic band is pulled and it's
19:09confirmed with an effect which is you
19:11get a shift in market structure. A
19:13bearish break of structure making a
19:15lower low. So now you can come back to
19:16this area and potentially sell with a
19:18new trend because you are trading this
19:204hour bearish trend looking for a lower
19:23low fueled by the major inducement. Of
19:25course this is just an overview. I'll
19:26show you later on and you've seen the
19:28videos of how you take trades based on
19:30these major inducements. But for now
19:31let's move on to the next one which is
19:32your medium inducement. Your medium
19:34inducement I like to look at as more of
19:36an intraday leading indicator. Meaning
19:38my M15, my M30 time frame, my M15
19:40structure, my M15 traps, my M15 trend
19:43lines and support and resistance. These
19:44are the areas I'm looking at. And
19:46therefore, we're not always going to
19:47take external structure. We're not
19:48always going to take these big supply
19:49zones. We might just take internal
19:50structures out. We might just take
19:52session highs and lows. We might just
19:53take high of previous week, let's say,
19:55but that might not always be a major
19:56inducement. And the medium inducement is
19:58my home. This is where most of my setups
19:59come because the major inducements take
20:01time for it to develop. It might take a
20:03few weeks for price to arrive to a
20:04supply zone, but in the meantime, medium
20:06inducements can be pretty much daily.
20:08So, I can find plenty of opportunities
20:09in a week within my trading windows, cuz
20:11the worst thing you'd want to do is wait
20:13for a major inducement. all month long
20:15and then it gives the major inducements.
20:16It gives the confirmation but it's not
20:18in your time window and then you have to
20:19wait another month for the next setup.
20:20That's why we have medium inducements to
20:22give us high quality zones and still
20:24good trade frequency. And what that
20:25looks like is simply before a move high
20:27in the markets, you have a buildup and
20:29an inducement. Before a move high in the
20:31markets, you have a buildup of these
20:32lows and an inducement and once again a
20:34buildup of liquidity and then a move. So
20:36this is basically confirming narrative.
20:38So this of course someone can just say,
20:39"Oh, but this is just market structure.
20:40Higher high, higher low, higher high,
20:42whatever." Yes. And that's what the
20:44point of this is that market structure
20:45movements, main moves in the markets,
20:47meaningful moves in the market, the
20:48tradable moves in the market that you
20:50should be focusing on. It's not just
20:51market structure alone. It's market
20:53structure plus inducements lead to the
20:55meaningful moves. You add a time window
20:57and confirmation that you need and
20:58that's what leads to these great A+
21:00setups. And the last one is going to be
21:02your minor inducement. This is just
21:04simply focusing on intraession price
21:06action, your M1 and your M5 time frame.
21:08And this is nothing meaningful. This is
21:10nothing massive. This can be either an
21:11execution criteria. So you build your
21:13trade idea from other things, your major
21:15inducement, your medium inducements. But
21:17then your execution criteria of how you
21:18take an idea to a trade can be a minor
21:20inducement. For example, it's a
21:22confirmation type. Or it's simply how
21:23you navigate who's in control. It's how
21:25you sense invalidation. It's how you
21:26sense where price is targeting next.
21:28It's simply how price goes from A to B
21:30in a session. And that can be, for
21:32example, price built this trend line
21:33liquidity induced before shooting
21:35higher. We grab this trend line
21:37liquidity induced before going lower. We
21:39grabbed all of this session low
21:40liquidity induced to come higher. And
21:42then we continue build up induce buildup
21:44inducement low push break of structure
21:47mitigation to get in on the block and
21:48trade opportunity. So you can see this
21:50is the living oxygen of the market.
21:52Watch all the videos on this channel.
21:53This is all I talk about. Price moves
21:55with inducements. It doesn't move
21:56randomly and it's happening all day long
21:58on every time frame on every currency
22:00pair and leading to great opportunities.
22:02If you're not trading with this, sorry
22:03to say to you, but you're trading blind
22:05because if you cannot see the liquidity,
22:06you are the liquidity. So as you can see
22:08with this diagram, I want you to pay
22:09attention. There's a lot of things you
22:11need to do to connect all of this
22:12together. It's not just simply about
22:14understanding a pattern or understanding
22:15an inducement. But this is where we'll
22:16get really advanced and I don't want to
22:18cram it all into one video. So, I
22:19implore you to research the rest of this
22:21channel where I've given each one of
22:22these key components as separate videos
22:24so you can break it down in your own
22:26time. But the last thing I want to leave
22:27you with in this video is connecting
22:28something together so you can take it
22:30home so that you can take it with you
22:31forward today, apply it to your trading,
22:33and see benefit right away. And that's
22:35going to be my attempt at summarizing
22:36everything that we've covered today with
22:38something actionable. And that's going
22:39to be first I need to understand market
22:41structure. So let's find our M15 main
22:43push. And we made a whole guide on this.
22:45So again go watch this video. But let's
22:46say you have a bearish market and then
22:47you see an M15 switch. You see M15 now
22:50becoming bullish. And once you've seen
22:51that switch you now see continuation in
22:53that trend. So you've now seen a lower
22:55high to lower low. Now making a higher
22:58high. Making a higher low. And therefore
23:00we have found a demand area. Once you
23:02have found that demand area you can now
23:04see when the pullback is confirmed. I
23:06take two legs of bearish structure. Once
23:08I have that two legs of bearish
23:09structure, I can now look for
23:11inducements, medium inducements to now
23:13look for sells all the way down through
23:16these supply zones of inducements all
23:18the way down to my demand area. Same
23:20again, I get a buildup, I get an
23:22inducement, let's say of Asia high,
23:23let's say into a decisional, I see a
23:25confirmation rejection of that
23:26inducement, buildup, inducement, breakup
23:29structure, and I sell on the mitigation
23:31with confirmation and time all the way
23:33down until I arrive to my demand area.
23:35So this gives you an opportunity to
23:37correctly counter trend trade with
23:39inducements, understanding main pushes
23:40and structure. And then once you arrive
23:42to your confirmed demand area, you learn
23:44how to refine it. I made a video on the
23:46confirmation criteria of points of
23:48interest. Did it lead to a break of
23:49structure? Did it have an inducement
23:50inside? Does it have confirmations of
23:53intent? How much time did it spend in
23:55consolidation? All of these criteria
23:56that I mentioned about points of
23:57interest. Once you've refined it, you
23:59allow price to come into your refined
24:00zone. You wait for consolidation and
24:02traps. You wait for inducement. You wait
24:04for intent. You look for an entry in
24:06confirmation and time. And then you
24:07trade the new trend. And that's a prime
24:09setup. You basically look for the
24:10buildup, inducements, and mitigation in
24:13high quality zones with confirmations in
24:15the correct time. When you connect all
24:17of these things together with the
24:18trinity, that's where you are on the
24:19right track. Cuz whatever you do from
24:21this video onwards, just remember if I'm
24:23about to take a trade, yes, use your
24:25market structure. Yes, use the things
24:26you like, but just add this small tweak.
24:28I'm going to take a trade in my same
24:30way, but I'm just going to add an
24:32inducement. I'm going to add
24:33confirmation. I'm going to add time
24:35window. And I'm going to add high
24:36quality zones. Once I've connected all
24:38of these things together, you will
24:39always improve your win rate. You will
24:41improve your riskreward. And you could
24:42even go from a nonprofitable trader to a
24:44profitable trader just by following
24:46these restrictions. Because as I always
24:48say, a restricted trader is a profitable
24:50trader.

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