Trading Course Day 3: Liquidity & Corrections — Transcript

Full transcript

1. 0:00All right, guys. Welcome to day three.
2. 0:04Why? Why did I throw up two fingers?
3. 0:06Welcome to day three. Um, today we're
4. 0:08going to talk about corrections.
5. 0:09Corrections are normally what grabs
6. 0:11liquidity in the market and basically
7. 0:13makes the reversal so that you can enter
8. 0:15the trade. So, pay close attention cuz
9. 0:17the indication part is the easy one.
10. 0:19Those are normally just signs to show
11. 0:21you that price is going to move in a
12. 0:22certain direction. The correction is
13. 0:24after the indication which shows um
14. 0:27basically will liquidity has grabbed and
15. 0:30then when you're waiting for the market
16. 0:32to pump back up or pump back down
17. 0:34whatever the case might be. But I think
18. 0:36this is one of the key parts that a lot
19. 0:38of people may struggle with. So I think
20. 0:41you should really like pay attention to
21. 0:42this. So with that being said let's get
22. 0:44into the video. Also as well if you want
23. 0:46to see all this live cuz a lot of people
24. 0:48say oh you just pick what already
25. 0:50happened. Just click the link down
26. 0:52below, go to the telegram and you can
27. 0:53see it day by day that I call it before
28. 0:56and after. So for the people that say
29. 0:57that just go watch the actual videos
30. 1:00that I do every day in the telegram and
31. 1:03yeah go based off that. So see you.
32. 1:06All right guys so all right guys. So
33. 1:10today we're going to talk about the
34. 1:12correction. I feel like correction is
35. 1:14one of the most I guess you could say
36. 1:18important parts of ICC. So, once again,
37. 1:20if you don't know what ICC is, this is
38. 1:23day three. ICC is basically the way that
39. 1:25I trade a three-step um I guess you
40. 1:28could say rule book that I use to be
41. 1:30able to get my entries, exits, and my
42. 1:32TPS. I think it's the most simple way to
43. 1:35trade. So, if you haven't already, go
44. 1:36back and look at video number two. So,
45. 1:40video number two, video number one is
46. 1:42very important for the fundamentals of
47. 1:43ICC, but video number two goes over the
48. 1:46indication. Yesterday I had just flew in
49. 1:49to LA so I was a little bit tired if you
50. 1:51couldn't tell. But I'll re talk about
51. 1:54indication once again and then I'll also
52. 1:56go into correction which is the most
53. 1:58main focus for today. Um so first we
54. 2:02have um once again we're going to start
55. 2:04off with that same same thing that we
56. 2:06had yesterday. So we had those two
57. 2:08levels and this is where we can
58. 2:10basically see what trend is going to be
59. 2:12started. So we're going to go ahead and
60. 2:14start everything here. Boom. Boom. Boom.
61. 2:17And then we have this, right? So, we
62. 2:18don't know what the trend is right now.
63. 2:20And like I talked about in video number
64. 2:21one, you don't want to trade
65. 2:23consolidation. Consolidation is when you
66. 2:25don't get any anything higher or
67. 2:28anything lower. So, no swing highs are
68. 2:30being broken or no swing lows are being
69. 2:32broken. And that will show you uh
70. 2:35consolidation. So, we're going to mark
71. 2:37this and we're going to say
72. 2:37consolidation. I'm trying to get more
73. 2:40into typing out what I'm saying so it's
74. 2:42a little bit easier for you to
75. 2:44understand. Um, but yeah, so with this
76. 2:47being said, we also have, let's just put
77. 2:50swing high. I'm going just start marking
78. 2:52out everything so you can easily
79. 2:54understand what everything is. And then
80. 2:57we have swing
81. 3:00low. Right? Swing high, swing low, swing
82. 3:03high, swing low. So all of these are
83. 3:05swing highs. And these also will play a
84. 3:08part later on as we start to describe
85. 3:10market structure. I'm pretty sure that's
86. 3:13going to be video number five. Market
87. 3:14structure itself. It should have been
88. 3:16the first video, but I feel like
89. 3:17explaining to you what everything in ICC
90. 3:20is in the beginning is going to help you
91. 3:23because then you're like, "Okay, I want
92. 3:24to trade this way. I don't want to trade
93. 3:26this way before I start breaking it down
94. 3:28into how to understand more of the
95. 3:30markets. But if you feel super
96. 3:32comfortable with learning the way that I
97. 3:33trade, then continue to watch on. But
98. 3:36these first four videos will basically
99. 3:39let you determine if you want to keep
100. 3:40trading this way or not. There's going
101. 3:42to be right now it feels super simple,
102. 3:44but there's going to be things that I've
103. 3:46learned along the years that can really
104. 3:47help you elevate the game and keep it as
105. 3:50simple as possible without having to
106. 3:52learn all these different terms and all
107. 3:54these different ways of trading. And I
108. 3:56don't use indicators at all. So, the way
109. 3:58that we're trading is basically using no
110. 4:00indicators at all. So with that being
111. 4:03said, um let's continue to break
112. 4:05everything down. Um right now we have
113. 4:07our swing highs and swing lows. So in
114. 4:10that consolidation, all we wait for in
115. 4:12this level, so once again also as well,
116. 4:14we trade 1 hour
117. 4:17and 4 hour time frames. Uh me
118. 4:20personally, I trade the 1 hour. So
119. 4:24personally, I use one hour pretty often.
120. 4:27Pretty much in every setup that I've
121. 4:29done has been mainly off that one hour
122. 4:32time frame. There's times where I can
123. 4:33use the 4 hour time frame to basically
124. 4:35go into the markets and be like, "Okay,
125. 4:37price is going to do this long term."
126. 4:39So, normally 4 hour I use for longterm.
127. 4:42So, 4 hour
128. 4:45long-term swings.
129. 4:48Y'all can see the energy in me today.
130. 4:50Yesterday, I was out of energy. So, I'm
131. 4:51sorry for yesterday. So, I'm just going
132. 4:53to explain everything today. And then
133. 4:55this is more for my day trade swings.
134. 4:58Day trade swings. So what I mean by day
135. 5:01trade swings is normally what I try to
136. 5:03do is I find a day trade and turn it
137. 5:05into a swing trade, which is more of an
138. 5:07advanced thing that we're going to get
139. 5:08into later, but my 1 hour setups are
140. 5:11something that I'm like, okay, today
141. 5:13price is going to go in this direction.
142. 5:15And then normally when I take those
143. 5:16trades, it is based off what the entire
144. 5:19trend is going to be. So I try to look
145. 5:22for that initial position. So that way
146. 5:24it can lead into a long-term swing
147. 5:26because I never like to just day trade
148. 5:28and just be done. I kind of like to have
149. 5:30that day trade, make that money that
150. 5:32day, collect some partials, and then be
151. 5:34able to hold longterm. So it's kind of
152. 5:36like I treat it as like a trade and an
153. 5:39investment. So I invest longterm into
154. 5:41whatever the market is doing so I can
155. 5:42catch the full trend out of it. So, with
156. 5:46that being said, normally whenever I'm
157. 5:47marking up my charts to be able to see
158. 5:50what we're looking at now, so what I'm
159. 5:52seeing right now in the markets right
160. 5:53here, I'm looking at the 1 hour or 4hour
161. 5:57time frame based off of um how clear it
162. 6:01shows to be. So, if the 4 hour is
163. 6:03clearer than the 1 hour, which in some
164. 6:06cases it can be, then I would look at
165. 6:08the 4our time frame. If the 1 hour is
166. 6:10clear, then there's no need to go to
167. 6:12that 4 hour time frame. if the 1 hour is
168. 6:14already showing me a good amount of
169. 6:16structure. And what I mean by that is
170. 6:18what I mean by good or bad is basically
171. 6:22I can see the highs and I can see the
172. 6:25swing lows because there will be some
173. 6:26cases where you're using the 1 hour time
174. 6:28frame and everything's a little bit
175. 6:30choppy but you can see price is kind of
176. 6:33going up or kind of going down. So you
177. 6:35can see phys visually that price is
178. 6:38going in one direction but the 1 hour is
179. 6:40a little bit more choppy. And what I
180. 6:42mean by choppy is it's going up and
181. 6:44down, up and down, up and down. But the
182. 6:454 hour might just have, you know, those
183. 6:48clear highs and clear lows. So that is
184. 6:52the time frame that I use. We'll get
185. 6:53more into time frame later on down the
186. 6:55line because it plays a big part in ICC,
187. 6:58especially that um correction phase,
188. 7:01correction going into continuation
189. 7:02phase, which is the next video. It plays
190. 7:05a big part. time frames play a big part
191. 7:08in that um correction going into
192. 7:11continuation. So, with all this being
193. 7:13said, remember yesterday we talked about
194. 7:14indication, but I'mma touch back up on
195. 7:16it again. And indication can only come
196. 7:19from um you can say it to yourself if
197. 7:22you already know. Indications can only
198. 7:26come from
199. 7:28price breaking
200. 7:31above a swing high
201. 7:36or low. So, put that to yourself. Teach
202. 7:39yourself that um indications can only
203. 7:41come from price breaking a high um
204. 7:44breaking above a swing high or swing
205. 7:45low. So, our swing high, swing low,
206. 7:47right? In most cases, most people would
207. 7:49call this just um a support and
208. 7:51resistance. But I try not to teach
209. 7:54myself that word because support and
210. 7:56resistance, normally when people think
211. 7:57of that, they think of, oh, as soon as
212. 7:59price gets to the support, buy or soon
213. 8:01as price gets to the resistance, sell.
214. 8:03And that's not always the case. You
215. 8:04actually want to use the opposite of
216. 8:07what you probably learned already is at
217. 8:09resistances, you're looking for price to
218. 8:11give you that indication because this is
219. 8:13normally telling you when price is
220. 8:15breaking a resistance is normally
221. 8:17telling you that price is having the
222. 8:19potential to have bullish movements um
223. 8:22above and to go higher. So with this
224. 8:23being said, let's think of it like this
225. 8:25and then I'm going to go back into
226. 8:27indications and corrections, right? So
227. 8:29think of this as a price point. So each
228. 8:31level has a price point, especially if
229. 8:33you're using the higher time frame. And
230. 8:35what I mean by price point is these
231. 8:37levels cost money to break. That's why
232. 8:39they hold so strong. So since they hold
233. 8:42so strong, especially on the higher time
234. 8:43frames, they it cost a lot of money to
235. 8:47break these levels. So these levels do
236. 8:49not just break because the market needs
237. 8:51to grab money in order to break these
238. 8:53levels. So whenever price has collected
239. 8:56enough money, so that's why you see
240. 8:57consolidation sometimes because it's
241. 8:59accumulating the money together and then
242. 9:01once it feels like it has enough money
243. 9:03to break out, it will have that big
244. 9:05burst because it's it's gain so much
245. 9:08money. It's like shaking up a Coke
246. 9:10bottle. If you shake it up long enough,
247. 9:13soon as you open the bottle or as soon
248. 9:15as it has the opportunity to break out,
249. 9:17it's going to go everywhere. So the same
250. 9:20way with these levels like soon as price
251. 9:22collects enough money and it's shaking
252. 9:24up the market. It's grabbed as much
253. 9:26liquidity as possible then it'll
254. 9:28eventually go into the direction that it
255. 9:29wants to go. So it could be up or down
256. 9:32and it gives us that breakout. It gives
257. 9:34us that indication. And the thing is
258. 9:36with this, right? So think of it in this
259. 9:38way. When price normally breaks out or
260. 9:40like let's say you open up the Coke
261. 9:42bottle, normally it'll be a burst for,
262. 9:46you know, a small bit of time and then
263. 9:49you start to see it slowly slowly die
264. 9:51down and go away, right? And then it
265. 9:54goes back into the or like it spills
266. 9:56everywhere and it's just like a mess,
267. 9:57right? So think of the indication and
268. 10:01correction being the same thing. the
269. 10:03opening the Coke bottle everything
270. 10:05explodes everywhere price slow I mean it
271. 10:08starts to slow down dies off and then
272. 10:10there's a mess everywhere so it's the
273. 10:12same thing with uh the indication and
274. 10:15correction so once price breaks out
275. 10:18there's this big explosion everybody's
276. 10:21trying to get into a trade everybody's
277. 10:22rushing to get into a trade everybody's
278. 10:24trying to look for something people are
279. 10:25in buys people you know if it's reverse
280. 10:28so if it's like uh option yeah if it's
281. 10:30like this if it's um going down then
282. 10:32everybody's trying to look for that
283. 10:34sale, look for that buy and nobody knows
284. 10:36what's going on. They just know that
285. 10:38price is exploding. So with that, it
286. 10:41causes a lot of FOMO, a lot of greed.
287. 10:43And I used to be this way where I used
288. 10:45to see breakouts. And there was some
289. 10:47that I profited on, but what I like to
290. 10:49focus on is not what just makes me
291. 10:51profitable, what makes it consistent. So
292. 10:54what I can say is this normally causes
293. 10:56FOMO. People get into the markets, they
294. 10:58don't know how far price is going to go.
295. 11:00So then they start getting into the
296. 11:02markets, getting into random positions
297. 11:04and overall, you know, losing money long
298. 11:06term because this is not always going to
299. 11:08work. It's not always going to explode
300. 11:09200 points or 300, 400 or it could just,
301. 11:13you know, do 10 points and then how that
302. 11:15can be an indication, right? So it's not
303. 11:17always going to explode super far away.
304. 11:18You can make a lot of money and then
305. 11:20close for that day. Some days are going
306. 11:21to be a small move or a small break
307. 11:23above or small new high or a big new
308. 11:25high, whatever the case might be. But to
309. 11:28avoid this um just kind of use it, set
310. 11:31your alerts. If price makes a new high,
311. 11:33note that because what today's topic is
312. 11:36is corrections. Corrections are very
313. 11:38important in the market. Not all the
314. 11:40time price is going to give you that
315. 11:42correction fully of like how I'm going
316. 11:43to explain. But I can teach you a way to
317. 11:47understand how to know when the
318. 11:49correction is over. So corrections are
319. 11:51not always going to go all the way back
320. 11:53to the previous level that it went to.
321. 11:56But I'm going to teach you later on down
322. 11:57the line the different types of
323. 11:59corrections. In this video, I'm going
324. 12:00just tell you what a correction is. So,
325. 12:02the correction is after price makes a
326. 12:06high or a low. So, remember this. Let's
327. 12:08go ahead and write this down for you.
328. 12:10Correction
329. 12:12is when
330. 12:15price
331. 12:17or let's say it like this. Corrections
332. 12:20happen
333. 12:22after
334. 12:23price
335. 12:26makes a high or low. New high. New high.
336. 12:31So that's the biggest point. New high or
337. 12:33new low. So this normally happens after
338. 12:36a new high or a new low. And why does
339. 12:38this happen? Because the market is
340. 12:42taking in all the FOMO traders, the
341. 12:44greedy traders. And it is what it then
342. 12:47is going to do is going to realize
343. 12:49there's so many there's so much money on
344. 12:51the line because there's so many people
345. 12:53buying or selling this breakout in this
346. 12:55case they're buying this breakout and
347. 12:56it's so much money on the line that it
348. 12:58can use right and also as well this
349. 13:01means whatever price ends up stopping
350. 13:04this also lets us know that there is a
351. 13:07in this case there's a amount of sellers
352. 13:10here. So there's a bunch of sellers here
353. 13:12and there's more sellers than there are
354. 13:14buyers at this point. So buyers, what
355. 13:17what will normally happen is a lot of
356. 13:19people will have this breakout. So
357. 13:20there'll be a lot of money on this end
358. 13:22of the stick. It's like right around
359. 13:24this area. And then there'll also be
360. 13:26people that are really really late to
361. 13:28the move which is up here which these
362. 13:30guys normally put in a lot of money
363. 13:33because psych psychologically
364. 13:36people who end up buying at the top top
365. 13:38they think that price is going to still
366. 13:40continue to go and they feel they
367. 13:42normally FOMO because price has moon so
368. 13:44much. It's went up so much. So by the
369. 13:47time that people enter here they feel
370. 13:49like they've missed out the whole move.
371. 13:50So they go extremely hard on their
372. 13:53position because they felt like they
373. 13:54missed so much. So they're trying to
374. 13:56grab as much as possible thinking it's
375. 13:58going to continue to go up. So
376. 14:00psychologically, which is what I'm
377. 14:02pretty big on when it comes to trading,
378. 14:04there's going to be two areas where
379. 14:06people are going to normally have
380. 14:07positions. Initially, the initial
381. 14:09breakout, which more of the advanced
382. 14:11traders that's been trading breakouts,
383. 14:13they're normally going to trade around
384. 14:15this level. And then the beginner
385. 14:16traders which are going to have um
386. 14:19levels over here at the top or probably
387. 14:21mostly in the middle. So roughly around
388. 14:23these two areas there are a bunch of
389. 14:25orders, a bunch of buyers in the markets
390. 14:27that are just trading based off of
391. 14:29emotions. So what I like to do is I also
392. 14:33think of price coming to this level and
393. 14:36saying hey there are more sellers right
394. 14:39now. We've reached a level where there
395. 14:40are more sellers in the market and we
396. 14:43cannot push past this. Even though we
397. 14:45have a lot of buyers in the market right
398. 14:46now, but sellers are not there's so many
399. 14:49sellers at this point and we only have
400. 14:51let's say and these are just the example
401. 14:53numbers like the market has trillions of
402. 14:56dollars in it. These but these are just
403. 14:57examples, right? So let's say at the all
404. 15:00the FOMO traders and everything, we only
405. 15:02have 500 people in that market, right?
406. 15:05But the buyers are only going to go up
407. 15:07to a thousand. They reached a thousand.
408. 15:10So now they're like, "Oh, bro, we don't
409. 15:12have more buyers than we have sellers at
410. 15:14this level." So what then this causes is
411. 15:16the market to think, okay, there's a,000
412. 15:21sellers here, but we have 500 buyers.
413. 15:25What we need to create is now we need to
414. 15:28take out all the buyers so we can
415. 15:30collect all the money that they have
416. 15:33and then later on go back up and try to
417. 15:36break out of that um to break out of
418. 15:38that sell range. So the sell level I
419. 15:40meant. So then the correction happens
420. 15:42and normally the correction happens from
421. 15:44the initial breakout because then all
422. 15:47stops should be out. So the people up
423. 15:49here they're liquidated about time price
424. 15:51is halfway. They're mostly liquidated,
425. 15:53but by time price is halfway. And then
426. 15:56there's other times where price has to
427. 15:58take out these guys and they liquidate
428. 16:01them as much as possible, go back into
429. 16:03that range, which is very important for
430. 16:06the continuation because the
431. 16:07continuation is actually where our
432. 16:09entries, stop losses, and take profits
433. 16:12are going to be set. That's going to be
434. 16:14in the next video. But to explain
435. 16:16consolidation or to continuation, my
436. 16:19apologies to explain continuation.
437. 16:23H bro so many C's consolidation
438. 16:26continuation correction to explain the
439. 16:28correction is basically telling you the
440. 16:30market is grabbing liquidity based off
441. 16:33of people FOMOing into the market. So
442. 16:35you're basically using a correction in a
443. 16:38way that most people don't look at it
444. 16:40more in a psychology way is because
445. 16:42there's people in the markets fomoing.
446. 16:44There's people just getting into the
447. 16:46random breakouts and making poor
448. 16:47decisions based off of what price is
449. 16:49doing and not they're not thinking long
450. 16:52term about the situation. Me as a
451. 16:54trader, I'm going to teach you guys how
452. 16:56to think long term. But you can still
453. 16:59trade dayto day, but when you trade
454. 17:01these day-to-days, you're going to think
455. 17:02in a sense of like I'mma trade this day
456. 17:05for a buy, but I know this buy can go
457. 17:07long term, so I can hold a long term.
458. 17:09You want to be able to take a position
459. 17:12and be able to scale into that position,
460. 17:15but once price gets to a certain point
461. 17:17for that day, you can scale out, but
462. 17:18still hold that trade. So, if you don't
463. 17:20know what scale is is, it's basically
464. 17:22getting into the position and then start
465. 17:24adding positions and then holding for
466. 17:27that, you know, that day, that week, and
467. 17:30then being able to hold that trade and
468. 17:31continue to maximize on the trend. And
469. 17:34trend is like what we talked about in
470. 17:36the first video. So this is basically
471. 17:39what the correction is about is normally
472. 17:42about um when price is pushing back down
473. 17:45grabbing as much liquidity as possible.
474. 17:48And normally you would want to look at
475. 17:50this correction. So notice how we marked
476. 17:52up our charts on the 1 hour or 4 hour
477. 17:55time frame.
478. 17:57This the correction you're going to look
479. 17:59at on the
480. 18:01correction
481. 18:03wrong word correction
482. 18:07is monitored
483. 18:13on the
484. 18:1515 minute time frame. So when a
485. 18:18correction starts to happen you want to
486. 18:20start monitoring this on the 15minut
487. 18:22time frame. And the reason is because if
488. 18:26you look at it on the 1 hour, it's just
489. 18:27going to be a candle or two going back
490. 18:29down. It's still visible, but the reason
491. 18:32why we want to get into a habit of using
492. 18:34that 15-minute time frame to wait for
493. 18:35that cor um the correction is because
494. 18:38it's going to play a big toll into
495. 18:41knowing when the correction is over. So
496. 18:42that way you can get that entry on that
497. 18:4415-minut time frame when price is back
498. 18:47above those swing highs. So basically
499. 18:49ICC all we are doing is waiting for that
500. 18:52indication to tell us where price is
501. 18:55going to head to. What level do we need
502. 18:57to set our TP at? Because this is going
503. 18:58to be where our TP is, right? Because
504. 19:00this is the level that sellers are going
505. 19:02to be at to push price down. So if we're
506. 19:04buying, we're always buying into the
507. 19:06sellers. And if we're selling, we're
508. 19:07always buying or we're always selling
509. 19:09into the buyers because those are the
510. 19:11people that we are basically going to
511. 19:13swap our contracts for. we're going to
512. 19:16swap our contracts with the people that
513. 19:18are waiting to basically purchase them
514. 19:20right off bat because they're already
515. 19:21sitting at that level. So, with this
516. 19:24being said, the easiest way to
517. 19:27understand a correction is thinking of
518. 19:30it as if a new high or a new low is
519. 19:32made, then think of liquidity. Think of
520. 19:35the market trying to take all those
521. 19:37people that are in a breakout, take them
522. 19:39out before making the next big leg up,
523. 19:42which would start the trend. So watch
524. 19:45video number one again. Remember that
525. 19:47trend is very important because higher
526. 19:49highs, higher lows are constantly being
527. 19:52made and the only way price is going to
528. 19:55break those levels is if the trend is
529. 19:56reversing. But if the trend is not
530. 19:59reversing, then you're going to
531. 20:00constantly get those higher highs and
532. 20:02higher lows. And if you look at this,
533. 20:05we see that price is giving us that
534. 20:07indication. It corrects and then back
535. 20:10above that market, we can capitalize on
536. 20:12the rest of the trend. And so that's
537. 20:13what I'm talking about when I talk about
538. 20:15swinging my trades and holding my trades
539. 20:17longer because if price is trending, it
540. 20:19will not break its structure. So it will
541. 20:21not break its support levels. And the
542. 20:23longer that it holds these support
543. 20:25levels, the longer we can hold our
544. 20:26trades, right? And we can keep targeting
545. 20:28new highs. So our first position will
546. 20:31look like this. So if we have our
547. 20:33indication, our correction, and then the
548. 20:36continuation, our trade will look like
549. 20:37this. Stop loss below the previous level
550. 20:40and then we would target the previous
551. 20:42high. But what what this calls us to do
552. 20:44is since we're targeting the previous
553. 20:45high, if price is truly on an uptrend,
554. 20:48then it would end up creating a new high
555. 20:51which we can then hold for and then we
556. 20:53can maximize our profits that way. So
557. 20:55that's basically what a correction is.
558. 20:59And if you have any questions, please
559. 21:01leave a comment down below. But that is
560. 21:03the best way to explain a correction.
561. 21:06Um, tomorrow we will talk about how to
562. 21:08know when the correction is over. And
563. 21:10then the next day I believe we'll go
564. 21:12into um no we can do correction and the
565. 21:16finishing correction and continuation
566. 21:18part tomorrow
567. 21:20but not to overstimulate your brain. But
568. 21:22that is the best way that I can explain
569. 21:25how to overall see the correction.
570. 21:27Tomorrow we'll talk about how to know
571. 21:29when it's over so that way you can get
572. 21:31into an entry. So tomorrow is going to
573. 21:33be more of continuation. Continuation is
574. 21:35where you get your entry, stop loss and
575. 21:36TP. So tomorrow's going to be really
576. 21:38good. But I hope this helped. Um, enjoy
577. 21:41your days and yeah, I'll see you guys
578. 21:43tomorrow.