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Trading LIVE with a World TOP Ranked Scalper (EXTREME Accuracy) — Transcript

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0:00This guy is the best scalper in the world for the first time ever where he showcases the power of
0:05his strategy and breaks it down step by step. Freemon. You wait for this candle. You put the
0:10stop loss here. You target either. This is the main reason why a lot of traders use money. They
0:15try to anticipate what the market is doing before the market does it. People call this
0:20manipulation. They try to break out and they fail. This is the reason we will get here.
0:24You finally will see a trader break down candle by candle exactly what he
0:29thinks is going to happen live during New York session. We are getting ready for the squeeze.
0:34The squeeze will be present here. Look, there you have it. When I told you I will scale out,
0:38it's exactly because when you see this, the next step is aggressive sellers. Yeah,
0:46you you coded the algorithm. This is a top 1% trader showcasing his strategy for free to give
0:53to the audience a little bit of reference. You can either do 15 minutes, 3 minutes,
0:58you can do 1 hour 5 minutes or you can do the most aggressive one. That is what I do. The setup that
1:04we took before is exactly what I will execute in the world trading cup. How I did this performance
1:09in the world trading cup is building profit for the day, building profit for the day, building
1:13profit for the day. And in directional days, I risk for example, Fabio Valentino. You've never
1:18seen anything like it. It will blow you away. Make sure you tune in to this episode of Chart
1:24Fanatics. Welcome everyone back to Chart Fanatics, the go-to channel for all of the very best trading
1:29strategies and concept breakdowns with the very best traders in the world. Talking of which, today
1:34we have a worldclass scalper with us, a future scalper at that. He has been in the top three in
1:40the world rankings of the Robins Club, actually achieving in a 12-month period over 500% return.
1:47And that is in the futures division as well. You probably already know who it is. If you don't
1:52know, you're going to get to know. We're going to go through his exact strategy that he used to be
1:57able to achieve those incredible results on the world stage. is the one and only Fabia Valentina.
2:03Thank you for asking me Ritz. And uh today we will go deep dive in the model that I used in
2:10the world champion. I made some videos about it but I keep the source for this this podcast and
2:18um before starting to explain how the model works we need to explain what's the misconception about
2:26market structure in the market. So I will just start drawing it and explain what 90%
2:33of traders do and why 90% of traders lose money. So let's start with I think that'll be helpful.
2:39The concept of the market structure that's what usually a lot of traders do and you can confirm
2:46it. This is what usually it's done uh watching a market structure shift or change of character or
2:54breakout. There are 100 terms that you can use for it. And uh what they try to do is they try
3:00to go trend following when pattern like this presents and then they can just wait for the
3:07uh retracement to jump in just going through considering we are in a short sentiment here
3:13like using the concept of supply or order block if you want to be more fancy following the algo
3:20uh mitigation level and continue to go down. Now what I tested in a lot of years of experience is
3:28that this pattern usually doesn't work if you don't frame it in the correct uh concept and
3:35to frame it in the correct concept you need to start using something that is necessary
3:42that is the profile. So you need to understand exactly where you are in the market and what's
3:48the big picture that you are watching because if this pattern is presented when the bell curve of
3:57the distribution of the day is like this you are exactly jumping on a trend to go against the lower
4:08distribution of the volume. M and what this says statistically is that only 30% will go through
4:19the rest will remain in what it's called the fair value area. So you will just keep getting stopped
4:25out till the market really uh decide to take off. And this is the reason a lot of traders that try
4:32to embark on a journey of using trend following strategies they understand really soon that
4:39uh the win rate is not what they were expecting like 70 80%. when they try to target for example
4:46this level from here and they say okay I will just have 50% 60% we rate 1 to three this is not real
4:53because you are not you are not reading what the market is saying you are trying to predict the
5:00market okay now the good point about order flow and about volume analysis in general is that you
5:07get the knowledge to understand when to stay away because if the same pattern is presented
5:14in this area it's a completely different situation to explain you this we need to go to AMT AMT is
5:24uh the real nature of the market and is the concept of auction market theory market is an
5:30auction and it goes from balanced area where all market participants are transactioning efficiently
5:40to imbalance Now market is not usually in in imbalance. It's usually in balance. So that's
5:50the reason why traders that start take you streak of stop-loss because they try to get the long and
5:57they get liquidated by you can call what you want. You can call spring, you can call liquidation,
6:02you can call uh liquidity seeking everything you want even if it's not what happens behind
6:07the curtains but you try to get the last spring. M before the move up and you notice that this 1
6:14to 10 becomes a 1 to2 because you take four stop to try to do it. Yeah. Now if you do this simple
6:20change and you wait for the market to get to a condition of out of balance your win rate will
6:28jump up by at least 20 to 30%. And this is exactly the building point of the model that I use. Why I
6:36call it a model and not a strategy? Because the concept of strategy is a group of rules that you
6:43need to follow strictly. And how can you follow a group of rules strictly without understanding
6:49the narrative if the market is a dynamic entity? It's like trying to cage an animal that is not
6:56made to be in a cage. And it change every day. It adapts. For example, yesterday there was this
7:01situation about America bombing Iran. we open with a gap down really heavy. You cannot expect
7:07that the market today will behave as Friday. You will have a different behavior. Now what
7:11it's helping you is understanding how you can use the profile to exactly time your entry and your
7:19area. So this is the step one of the model and is understanding the location. The location is
7:28when you can efficiently trade when you are out of balance. So your model is okay to be traded.
7:37You start to see what all the traders are using. So you start to see the market structure and you
7:43start to validate which area can be used to jump on trade. Yeah. Okay. So now it comes handy to
7:51use supply and demand zones and it comes handy to understand inefficiency. Now inefficiency if we
7:59can talk about it uh is misconcepted. nowadays because it used the term fair value gap. Yeah.
8:06But what happened really behind the curtains in uh the concept of inefficiency is when one part
8:12is more aggressive than the other. So the market gets really momentum in one direction and this
8:19is if you think about it is the best moment to transact because the market is telling you this
8:23and this is not my personal opinion or your personal opinion. What the market is telling
8:28us look I'm out of balance. Mhm. I'm searching for a new level of balance that will be down.
8:35So it it can be here, it can be here, it can be here, but I'm telling you that I will go there.
8:39Okay. At the same time is telling you that the sellers are more aggressive than buyers
8:44because you are getting this kind of concept. And that's when you go to step two. Step two
8:51is the concept of validating the level. Mhm. Because now you have the direction,
8:58you have the condition of the market, the market status and you have three possible takeprofit that
9:03you can frame by watching at the other area. Now it comes handy a concept called order flow that
9:11is not a concept but it's like an alphabet a new way of reading the market. So 90% of the
9:18trader try to understand what is happening inside a candle using multi-time frame analysis. Yeah,
9:25I think the real inefficiency is the way trader analyze the market because it's like trying to get
9:34the bullseye Mhm. blinded. Mhm. Like maybe one time it will work, two times it will work,
9:39but you don't have exact data about the location. Yeah. So what you can do is that you can use this
9:46area that create the breakouts and let's consider that I make an arrow here and we zoom out.
9:52what is happening exactly inside here. Okay. So if this is the swing point that break this
9:59low traders will just watch for what is called fair value gap or inefficiency that is when the
10:06candle is not transaction efficiently. What you can do is that you can use from point A to point
10:12B using profile to watch exactly when there are low volume node. Yes. And I know this because I
10:23saw the other interview that you have made and I really like the model also of Carmen Rosato.
10:28I think he's a really good order flow trader and is doing something really similar to what am I
10:32doing because low volume node it's a really good reaction level. So you can use it as a
10:39continuation. If we have a low volume node here the probability that we will go down is really
10:44high. Yeah. So you start to add the concept of refinement. Mhm. You have the direction,
10:52you have the location, you have the refinement of the location. Now you need the step three.
11:00The step three is a little bit more difficult because it's the part where you really need the
11:04experience and you cannot just automate it and say okay when it's happening because it's really
11:10sensitive to market. What I use is analyzing big orders. So when there is in one specific point
11:18let's say here a lot of aggression. Mhm. Okay. And in order flow platform typically you see
11:25bubbles. Yeah. Okay. If you use any platform you can see bubbles. When there is direction location
11:33and aggression your ability to predict is zero but your ability to read is 100. You are exactly
11:43tuning in in the market at the correct moment and you are not predicting what is going to do.
11:49You are waiting. So this is really beneficial because when you see aggression you don't have
11:56a huge stop loss for example out of balance. You don't have a huge stop loss above the high but
12:01you can get protected exactly above the big sell aggression. Yeah. So your risk-to-reward rate it's
12:08really big but at the same time the probability of your trades is really really big also this one
12:15what you are doing if we can make an example is just swimming on the direction of the flow. Yeah
12:22because you are being pulled down by the market aggression and also by all the traders that
12:28were long and when this area breaks will close their position. So you get the catalyst down,
12:34you get the location of the aggression of the cell and you get also the target point that can
12:40be based. We will see this on chart directly on the previous balance area. Yeah, because how the
12:45market moves. Let's remove this part here. But how the market moves is that is seeking balance. Mhm.
12:57So if you go out of here and the previous balance area was this one where your P point of control,
13:05the previous point where the majority of the volume was located, it's here. The probability
13:12that when you go this pattern and you enter here, let's say, you don't need to break your mind
13:17to understand where you can put your target. Maybe I can try 1 to 30. And this is another
13:23error. Traders think that the risk to reward is not influencing we rate. The more you seek to go
13:30above the AT daily, the more the probability will get lower. Hey guys, I hope you're enjoying this
13:36episode so far. And don't forget, we send every single strategy breakdown from every episode for
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15:48today. Now, let's get back to the episode. So, with this model, it's really uncommon that the
15:54market will snap back inside because when you see aggression and out of balance, the market needs
15:59to search for new balance. It's like human being. When we are in a condition of fear,
16:06our heart continue to have takia till we don't get back to calm. Yeah. And we say okay now we are
16:12stable. Okay. This is exactly what the market is doing. So the step three is getting a location for
16:19aggression. So that the trigger of the uh model is aggression and that target point. The target point
16:27also is really objective and I noticed during this year and also scalping during the um world
16:33cup champion that we can also get a window during the day where this model works really good. Yeah.
16:41Okay. So the best session to use this model it's 100% New York session specifically for equities.
16:50So for NASDAQ and uh for uh yes and uh is not working properly during the first hour of London
16:58session. I try to use this model and during London session you see out of balance back inside balance
17:05out of balance back inside balance. This is called by traders fake outs. Yeah. And it's usually when
17:11the market is not um really clear about direction. So um one concept that I use to remove this is
17:21that I don't trade before New York session. I only trade before New York session in the world cup but
17:27with a mean reverting model. Okay. So I was doing the opposite and we can go also through it because
17:32it's extremely profitable and it's even easier to implement this one and the following one.
17:43So let's say that in a balanced market from the statistical perspective during the London
17:49session usually in indices you have mean reverting behavior. Okay. So it's less common that you will
17:56see a trend. Yeah. You will see bouncing and going out. So one other model that I uh am using is the
18:03one that takes opportunity of when the market is deep discount based on the volume distribution
18:11and misnaps back in. Now it's the same concept. It's the opposite. Now we are seeking for buy.
18:18We have a target. Why we are using this target? Because this target is where the maximum volume
18:25volume is transacted. So there is interest like market operators are willing to transact here.
18:31Mhm. What I do in this area is that I don't take the first movement. I wait I wait for the
18:38first breakout. You can use price action for this because I get clear market participants of what
18:46they want to do. I don't risk that this is only a retracement and then they collapse. Exactly. Yeah,
18:52I get a movement that is clear when I get the first breakout and I'm back inside the balance.
18:58This probability is really high. Mhm. This really high probability. Now to increase even more the
19:05probability, I wait for the hand of the big market participants. So I wait for big trades. Yeah. So
19:12the common bubble of buy order that I can just say, okay, I jump in with them. I don't need to
19:20be a wizard. I jump in when the best one are jumping in with big volume and if I'm wrong,
19:27I want to be wrong immediately. Okay. Yeah. Because all the additional losing that you get
19:34when you are inexperienced trader and say maybe I put the stop loss larger when the market is going
19:39against you because I will it will snap back. This is really something that will destroy your bank
19:45account and your trading account. What you need to do is be wrong immediately and when you are right
19:52when you see that you get an additional breakout immediately stop to break even. Yeah. So after
19:58this small movement you are already risk free on you quite aggressive with your risk management.
20:03I'm aggressive with my risk management because I need to put in this small amount of ticks. Mhm.
20:090.25% of my account or 0.5% on the account. So you say you could do this or take this concept without
20:18order flow for example but of course the order flow just allows you to have more confirmation
20:23align more with the larger orders. It's working also for price action but it's like something that
20:30when you see it you cannot unsee it. So um when you are trading your mind as an orderflow trader
20:38says okay price action is nice but let's see what is happening in the level. you want to see it and
20:44then I think it's not convenient nowadays to not use orderflow for one simple reason we are
20:51edge and edge seekers as traders every 5% more win rate brings us more money at the end of the
20:59month every one hour two hour three hour more at the end of the month is more money for us so
21:05why not using all the information available I've been in trading floor I seen how they trade and
21:11institutional trader considering that 90% is algo trading nowadays. But the discretionary
21:17trading for alternative markets, they still use orderflow. They use orderflow because they want
21:22to see what they are doing. Maybe they are more long-term because they work with huge amount of
21:27capital. So they prefer to use volume profile. But for short term, after 10 years of trading,
21:33I never seen something better than order flow. So still nowadays the model is not getting changed.
21:40The only change that I've made is uh during high compression period that we have seen in 2023
21:47and 24 the the month that you are going through summer like end of March. Yeah. May June you see
21:55the market is getting a little bit compressed and August like NASDAQ movement are really choppy. So
22:02um what you can do is just say to create specific condition where you will not
22:08transact. So this model it's okay for London session, it's not okay for New York session,
22:14but it's perfect for the summer. So I'm giving you a model that it's perfect for the months that we
22:20are going in because this is the behavior maybe with Iran and America and Israel, it will not be
22:25the summer to do this model. But um but yes it's working uh properly. But to your point in terms of
22:32orderflow wise regardless of you know conditions that understanding of order flow remains right. So
22:39in terms of the principles that you're using when using orderflow and understanding that information
22:45and deciphering that information regardless of the conditions whether we're compressed or whether
22:48we're getting a lot of volatility and movement the the lessons and principles you take from order
22:53flow remains universal. So outside of because with price action and purely price action, the problem
22:59is one, you're guessing, right? You're trying to guess where stops are. You're trying to guess
23:02where the big players are because you can't see it. But equally, when conditions change, the same
23:08concepts aren't universal. Now you have to change and and be able to adapt. While with the order
23:13flow, you still have to adapt. you know, you still have to change in terms of your maybe your risk
23:17management, your trade management, but the order flow itself, like those orders are still orders,
23:23those stop losses, those those uh participants are still going to be the same. Um, but just a quick
23:30question for yourself. You weren't were you always an orderflow trader or is it something you picked
23:34up? No, I was a free action trader, but I'm really open-minded. So if someone comes to me and say,
23:39"Fabio, you can improve your risk-to-reward from here to here using option flow." Yeah,
23:45I'm really open to it. Like I think that a trader needs to be the most open-minded person because
23:51if a new tools for example, if new data like MBO orders can improve your model, you shouldn't be
23:59you shouldn't put your ego here and say no, my model is the best one. if it's improving your
24:03profit factor and sharp ratio just use it and connecting to your point I went to order flow
24:09also also because the price action it's harder to replicate for students because let's say that we
24:17have 100 people watching this okay and we say okay use a break of structure in favor of the trend for
24:24someone a break of structure is this for someone can be external breakoff structure for someone
24:31they take the big swing and is this the breakoff structure? Okay, if I say to you look drop for the
24:39full day the profile the profile is this one. This is the level where you are out of balance is not
24:45it cannot be this it cannot be this it cannot be this. If I say to you it's when you go here just
24:51put a filter of 30 contracts on NASDAQ on the one minute you cannot think it's here because you will
24:58see the ball. So it's really objective. Now there is a skill in reading of course market sentiment,
25:05market change. But when I explain you something, it's something that you can go home test it and
25:11you will see exactly what I'm seeing with price action. I think the the subjective analysis is
25:17really heavy especially if you start doing puts multi-time frame. So definitely yeah from daily
25:23to H4 to H1 to 15 minutes, 3 minutes, 1 minutes. What's the probability that the trade that you
25:29frame is the same that the trade that your student will frame? It's really low. That's
25:34what I was going to say. So when it comes to say teaching for example when there is no orderflow
25:38that subjectiveness becomes quite a difficulty because everyone has a different perception as
25:44you said as you you know there's a really good example of of showing that. But then when you
25:47have order flow regardless of that the time frame potentially and you know where you're looking that
25:53the areas on the charts are all going to be the same. Everyone's going to see the same thing.
25:56And those numbers are going to be reflected exactly the same across the board to every single
26:01person. While you know even the subjectiveness of say just candlesticks like a large red candle to
26:07one person might just another candle while to another person they'll be like oh my goodness
26:11the market is completely falling off a cliff when they explain the model when you see a big candle
26:15how much it's a big candle how much ATR you you include. So there is a lot of subjectivity and
26:21also let's consider that we have three level of analysis. We have lagging, we have real time and
26:33we are leading. Lagging are indicators. So if you get MACD, if you get stochastic, if you get RSI,
26:43this is created as uh derivative of price. So you get uh MACD that is always going after price,
26:53never anticipating. Yeah, price is real time. So you are watching what is happening as an effect in
27:02real time. But with volume, you are watching the narrative before the price created. I give you an
27:09example of something that I never explained. Okay? And this is something that really helped me to see
27:16the develop the developing pressure to be able to put at break even sooner than other people.
27:22Okay? So let's say that we are here. We have a long bias. We are out of balance and we have the
27:29previous day point of control. Okay. So with price action when can we put that break even? When we
27:36break this level. Yeah. You agree with me? Yes. Because we have level of protection that we can
27:41put here and we say okay it will retest and go. Yeah. We shouldn't break that low. Right. Volume
27:45we can use one tool that is called CVD. That is cumulative volume delta. What cumulative volume
27:52delta is giving you is a benchmark for pressure of volume. Mhm. So you are out of balance. So the
28:00probability you will find a new point of balance is high with cumulative volume delta. You see this
28:06is the price maybe you see the cumulative volume delta doing this when you are here the cumulative
28:11volume delta is doing this. What does it mean that aggressive buyers are really pushing on the
28:17gas and there is a lot of interest because as the price goes up you don't see sellers aggressive but
28:24you see that buyers are willing to buy at higher price and if we are at an auction and there is
28:30a a limited piece of Mustang from 1969 okay and the base auction is 1 million and you see buyers
28:38starting 1.2 1.4 1.6 six it means that the price is probably going up because they are interested
28:46in the piece. So what you can do when you see that cumulative volume delta is pushing up and
28:51you see this leg already building you can already put to break even. Yeah because you know that as
28:58the smallest retracement aggressive buyers will continue to push up and you are protected. Yeah.
29:03This is something that you can do with only with leading indicators you cannot do before.
29:08Of course, I didn't talk about global macro, but also global macro, it's a leading indicator or
29:13onchain analysis for crypto, but for intraday scalping, like orderflow is the benchmark tool.
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31:15let's get back to the episode. I love that example to be fair because if you really think about an
31:19auction that's probably the closest that the everyday person might have some sort of insight
31:24into or at least know and understand how they operate uh as a as a usual auction. So in this
31:29case the car or house for example um you'll see the same thing if let's say even when there are
31:35buyers who want to buy but let's say if the auction price is starting too high they don't
31:39they don't really like where it's starting at you'll see actually the auction begins anyone at
31:43a million no one answers no one says anything so then the auctioneer or whoever's like running the
31:49auction will bring the price down until there's some interest and then you never know like it
31:53might seem like oh no one wants this car no one wants this uh vehicle or in this case obviously
31:57no one wants to participate or place any orders in this market. But then once it hits the level
32:02that people are interested at, let's say if it's that car example again, let's say we started at a
32:07million but no one's interested. Bring it down to 800,000. Now suddenly someone's interested,
32:12one person's interested. Okay, we bid it up, but now people who were there for that particular
32:17vehicle moment. Yes. And then you'll suddenly see how Yeah, we started at a million and no one was
32:21interested, but suddenly we're blasting up to 1.25 25 million and there's still orders and still more
32:26bids and therefore that velocity and that amount of demand at the moment you go to the market price
32:32because if the market price is 2.1 million you start to see at 1.9 million of auction market
32:39participants saying okay let's go on increment of 50,000 not 200,000 so the market gets lower
32:46and you build new balance and then the point of control is the seller that close it usually the
32:52auction So um this is how really the market works and this is what I use daily to frame my entry and
33:03um then what's good about orderflow is that it's really um you can adapt it to every market
33:10condition. For example, if you have a model with price action that is working really good,
33:14you don't need to abandon your model. just see if you can get better precision and remove the
33:21losing trades using this concept. Mhm. So it's not something that you will not start from scratch.
33:27Yeah. Just expand the level of knowledge you have from candlestick charts. So like you said
33:33earlier as a trader and and a pure trader at that and who's someone who's focused on trading
33:39100%. That's your goal is to how do you build more edge? How do you squeeze more edge out of the same
33:46knowledge? playbook or strategy that you're using because that's really what you do at that point.
33:50You're not jumping, okay, I've got this strategy, but I want to find a better one. That's not how
33:54the mindset is, right? And then if you come across a really good playbook and edge and strategy,
33:59you always can start to add that. But your focus point is how do I make this playbook the best it
34:04can be? How can I be the best trader possible? And in this case, you might have a profitable
34:09price action model, but your goal then is okay, how do I squeeze more out of it, right? So in
34:14terms of using orderflow if you're not using that already that would definitely help you to squeeze
34:18more out of it. Now not I'm sure there might be some people who try and learn orderflow and go n
34:24this is a bit more complex for me and uh therefore you know for that particular individual it might
34:29not be as helpful for example but I would say it's probably a slimmer amount of people right
34:35um but the worst thing you can do is just not even try because you're already writing it's
34:39like people who need to learn fundamentals right and macro they don't because they it's complex and
34:44you know the price action's enough much to study yeah but in reality when you look at even just
34:49this year but co was a great example of it for as a lot of traders came into the markets but even
34:54just this year for example was a great example last year yes we had quite a bull market but
34:58there wasn't really a crazy amount of fundamentals behind um you know in terms of like changes and
35:04volatility changes and market changes while this year we're we're just coming into towards the end
35:09of June and literally we've seen highs lows we've seen the markets completely shift month after
35:15month after week and it's probably not going to change and we call this a Trump But but um again
35:20if you don't know macro it's so easy for you to sit there and go the markets are crazy I can't
35:24understand what's going on versus the people who do have an understanding and it I won't even class
35:29it as like a deep deep deep understanding some people you just have a basic knowledge allows
35:34them to have more clarity and calmness which as a trader as we know is extremely important
35:38u one thing we'll do so from here where should we go from here should we should we uh recap the two
35:44models quickly did we we covered two right two to go one point before that is edge decay. Yeah,
35:49let's do it. Yeah. Before going to to recap the model, let's do it. Um the concept of edge decay
35:55is when your model lose edge. Mhm. Okay. And this is something I notice a lot with price action. So
36:01for example, before I was using supply and demand in trend following and when the volatility change
36:08for example you are creating one rule that you have moving average long and we are adding to
36:14the trend when you get here. Okay. uh volatility change. So the the length of the swing if it goes
36:21from here to here you already take a lot of stop loss not because you are wrong the direction is
36:26right but the market will just swing higher and I think every discretionary trader notice
36:31it. Yeah. So this is edge decay and it's your lose of edge in the change of market condition.
36:38What's also Jim Simmons was talking about with his renaissance fund and um with or the flow what it's
36:46interesting is that you cannot actually have an edge decay because what you are watching is the
36:51true nature of the market. So you are not framing the market in something that is close rule from A
36:59to B but you are understanding what's happening. And I will give you an example of something that
37:05improved my model by four or five point in we rate that it's a lot if you are a scalper and is
37:14the following one before if you are like closed in a range but you are trading price action and
37:20you are trading continuation with brick test model is really common. Okay. So you wait for this then
37:26you wait for the week down and on the on on the test you go long. Yeah. When if you start to do
37:32one simple exercise and you start to only use order flow to zoom out when this is happening
37:39like you you take one specific part. So you cannot say that order flow is complex. You take the same
37:44candle just you make an exercise watch cumulative volume delta here and orders. You can use also
37:52footprint for this. If you see that at this level there is a lot of a aggression and the cumulative
37:59volume delta is doing here this it means that this movement is not supported and the probability that
38:04you will go down it's here and is something that is telling you before the price bring you to stop.
38:10So you can just decide not to jump in. And this is a comp a concept that I want to cover because it's
38:16something that I went through when uh the price action model was not working properly during the
38:23um 2019 and I had to step up the game and I was thinking no no I need to study from zero
38:30and I need to implement something that will cancel and raise all the learning curve that
38:35I got with price action. But it's not like this just you will start from where you are before.
38:40Yeah, just understanding what's happening behind the market. Of course, it's easier to think that
38:46the market is dominated by some black entity behind the table because understanding the
38:51mechanic is difficult. But I can guarantee you that you will improve as a trader. Mhm.
38:57And uh so we go now on the summary of the two models. Yeah. And we start with the trend model.
39:08So this model is a trend following model and we will go before on the timing
39:16that is New York session. Okay. So we want the biggest amount of volatility to implement this
39:23model in live market condition and uh I don't advise to keep the trades for the night. So
39:31this is a model that gets close as soon as the market close. You don't bring overnight trades
39:37because you also need more margin for futures. It's not convenient at all. Just if you are in
39:41profit or if you are in loss, cut the position and tomorrow it's another day for this one. So
39:46this is the timing. Then when we go on the step one, the first step is understanding market state.
39:59We can only have two market state. We can have a balanced market price action
40:06going here and we can have an imbalance market.
40:14Okay, with this model we want to transact here. We are not interested in this market condition.
40:22So also for the gamblers uh you have one rule that keeps you out of the market and
40:28this is really important because when I start scalping with price action every
40:31movement was okay for me like every small impulse and then you say okay I took three
40:36stop for the day I'm out and then the big moves arrives. So this is the lock where
40:43you cannot enter if you don't have exactly what the market needs to tell you. Yeah,
40:49this is the market state and what we frame as the step one. Then we need the location.
40:57The location is exactly
41:04your swing point. That is this one. Okay. Mhm. that you need to analyze deeply because you need
41:09to understand if you want to jump in here, if you want to jump in here or just if you want to jump
41:14on the train sometimes from the lowest point because momentum is so high that you can just
41:19say okay I jump here but I cover myself here. So it's still a good riskto-reward rate. What you use
41:26to do this you you use profile. Yeah. Okay. Use profile and what you search is low volume node.
41:34Mhm. So where the mark let's make try to draw the profile. Okay. Say that this is the profile for
41:40the swing point. What we can see here is that this is the low volume node. Not the best drawing. But
41:49I think it's understandable that we're going to see on the charts, right? The the point where the
41:54lowest volume get transacted. What you can do here is do this. Okay. So what I do usually is I don't
42:05put a limit order. Okay? I put an alert a little bit below. Okay? Because when it arrives there,
42:13I want to see big trades, big orders. Okay? So as we were seeing before, we started from the timing,
42:21we went through the market state, we went through the location, go to the step three,
42:25that is execution or trigger. What you want to see is aggression. If you are seller,
42:31you want a big red ball. Okay? When you see a big red ball, you can jump in and your stop
42:40loss will go here and your target will be the previous balance area. Yeah. So, if we are here,
42:49the previous balance area, it's here. Let's see the P. This is our target. And we are going to
42:56take out not half the position and let it run. we are going to take out the full position
43:01because the probability is that the market will reverse from it 70% of the time. So we are it's
43:06just not worth to keep the position for only 30% probability more. Yeah, better that we take all
43:12that we can in this case. Now let's go to the model two and the model two is mean reverting.
43:26So the model 2 is using the market state that is the opposite. Yeah. So he's using
43:33consolidation. Market state is consolidation and is when the profile is protecting from
43:42breaking here and breaking here. Okay. So you get from here to here to here to here.
43:49What we are trying to take is the out of balance condition that get back inside balance. And as
43:57I told you, we are not trying to take the first swing because it's risky. Yeah, we are getting the
44:03second swing. So when we have the first breakout, we are just waiting for the retracement. It's
44:07the same concept as before. Now the location is this wing. Yeah. You frame the location,
44:13you wait for the retracement. Mhm. So let's consider that this is this wing. Same stuff low
44:20volume node aggression seller consider that we are here maybe where we go we don't go here this is an
44:28error that everyone is doing the probability is not high you go here you go to the where the bulk
44:34of the auctions taking place where the probability that you will go to balance it's really high and
44:42if you are wrong you want to be wrong immediately if you have big sell orders here immediately
44:47Here it's your stop loss. A small trick for the scalpers, aggressive scalpers. There is a way to
44:55avoid slippage or at least minimize slippage put the stop loss not above the high. Yeah. Because
45:03above the high there are a lot of orders and what you see is that market will accelerate.
45:08Example when you you take previous daily high, previous daily low, previous weekly high,
45:13previous daily low. You see that the market even if it's a failu now it's going down it accelerate.
45:18So you lose an additional amount of tick that you can protect. How you can protect them just
45:23put your stop loss one or two ticks below the high. Okay. So you are taken out before everyone
45:31that is before acceleration takes place. And it's worth it. I tested it and it's worth it because
45:35sometimes you get five ticks, six tick of and it's a lot because the overall chances of price getting
45:41to one or two ticks below that high and then not go for not it's almost zero. No, it's not zero.
45:47Sometimes it happens and you just want to cut your ends but on the long term like statistically wise
45:53it's worth it. Yeah, cuz in this case for example, just to recap, so this recap wise, timing wise,
45:59you're looking at potentially London, right? And then in your consolidation periods such as
46:05normally your summer months, right? Yes. um just as an example. But in terms of the recapping the
46:11thesis, it's the fact that yes, you know, we're in a range and yes, you could target here because
46:16price has shown that yes, we're going from high down to low, but the highest probability is that
46:21auction auction area where the bulk of the orders and transactions are taking place versus, okay,
46:27yes, we could get here, but there are chances that we could get to there and rebound back up to that
46:33auction area again or rebound back up to the high that there's there's too many variables trying to
46:38target here or especially lower versus the highest probable and that you know it's not guaranteed,
46:45nothing's guaranteed, but the chances are way more in your favor, especially considering the
46:50information you're taking on board. Uh because again, you're not just entering from the first
46:54spike out of the range. You're going to wait for your confirmation and then look to execute.
46:59Exactly. Exactly. And then consider that there are some days that they are really blessed days
47:04where you have this model. Yeah. Then the market breaks the low. you activate the second model for
47:09New York and you take two amazing target and you are done for the week. Um, so yes, these are the
47:16the two model. Now the tricky part is correctly identifying the consolidation because you can make
47:23it as simple as possible and say this is one day. Mhm. So I use the profile of the previous day.
47:31Yeah. Okay. So it's easy. You don't need to have headache about it. You just wait for the Okay.
47:36There is a more advanced model where you have more execution where you get the ability to
47:42identify the consolidation phase. Okay, you just take an orderflow platform and you see
47:47the compressed candles and you just plot the profile on there. This is what we were going
47:52to do because it needs a little bit more skill. M I will explain you pull out the profile and I
47:58will show you something really interesting that not trading view but some orderflow platform are
48:04willing to give you also the delta of the transact volume before so you can see for each level who
48:11is dominating the market this is really useful because if you see here that you are going up and
48:18is dominated by buyers it's not the best condition to get a buy trades because the probability that
48:23you will do this it's really high. Yeah. At the same time, if in this area you see a huge delta
48:29cell when you break out, it's your birthday. Yeah. You just go for it. Mhm. Should we go over the
48:36quickly the pros and cons and then we'll pull out the charts. Let's take a break for a minute there,
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50:09let's get back to the episode. Yes. So, let's go on the pros and cons. The cons is that if you use
50:15the second model, compression days are killing you because sometimes uh especially if you don't
50:24work on the daily profile but you work on the um short-term profile that you can trace by yourself.
50:33Um consolidation is killing your win rate because maybe you take five small stop-loss. Yeah, five
50:40small stop losses maybe a lose a loss on $5,000. Mhm. Then you take one take profit and it's like
50:4815 20,000 but at the same time psychologically the win rate gets lower and if you see a lot of red
50:55in your account even if at the end of the week you are still profitable it's heavy for beginners it's
51:00heavy. So one uh bad concept is consolidation that directly affect win rate for the model and this is
51:09the reason I created a second model because when I lose with one I make profit with the other one.
51:15So it's like balancing the equity curve giving you more execution but the draw down gets lower.
51:21So it's worth it. This is the first cons. The second one is it's stress. We need to be honest
51:27with it. Yeah. when uh um your trades gets to the level not in a proper but in a real account where
51:35the single position is worth the salary that you were taking for example 10 years ago. So you are
51:41risking 2,000 3,000 4,000 5,000 per position and in 2 minutes 3 minutes you can lose it. Mhm. Of
51:49course at the end of the month it's profitable but on the short term it's heavy on the mindset. Yeah.
51:55Specifically if you go through the moment and there will be moments where you take streak
51:59of stop- loss like in the world cup I show transparently transparently the trades I was
52:05taking and one day I received a lot of insult from the people on the Instagram because I've
52:11been transparent of one day taking eight stop loss like small stop loss like five tick 10 ticks but a
52:17lot of stop loss because it was a day that and you risk sometimes 0.2 0.2 2 0.3. So it's like nice
52:25stop loss is 1.8%. 2% is not a big amount. You can deal with it. But when you talk to people and you
52:32say look I took nine stop loss. You see learn to trade. Yeah. So so so they they just think
52:37that a profitable trader is a trader that having a huge amount of win rate. They don't consider that
52:43maybe the stop loss are incredibly smaller than gains. Yeah. So the the stress part and the the
52:51third cons is the time commitment. Mhm. Like to execute this model you cannot do it as an hobby.
53:00You cannot do it as a side hustle. You need to be in on the screen from the starting of the newer
53:07session to the end because the position not only need to be executed is set and don't forget it's
53:14set and check is something like this because you need to trail your stop you need to manage there's
53:19a model for real traders. This is very this is a model if you want that trading gets your fulltime
53:24income. Yeah. Okay. Now on the London session I manage three I manage companies with my business
53:31partner but in the new year session three or four hours I do this and it's necessary you cannot just
53:38get out you can't just decide that after a certain time you don't open trades so you can enjoy dinner
53:45that's of course can be can be something good on the pros the first one is number of trades
53:56Why this is good? Because draw down gets covered really fast if you have a big profit factor and
54:05sharper ratio. So you can take nine stop loss for the day but by the end of the week I was again in
54:10profit. I was high watermark. So I was creating new high on the equity equity curve and uh also a
54:18big number of trades creates something interesting for hedge funds that wants to give you capital.
54:25Mhm. Because a model that in 12 months does 2,400 execution is more respected than a long-term model
54:33that in 12 months have 30 trades. Yeah. Because the data sample wise this model is more valuable.
54:42Interesting. It's giving you a lot of room of improvement and is giving you a lot of data
54:47analysis that you can input and you understand really fast if your model is not working properly
54:53in certain market condition because for example I have a benchmark that is the maximum amount of
54:59stop- loss I've taken that is 11 stop loss okay it's a humbling experience but you know that the
55:07market can stay in compression for one full week you know that every day it's a fake breakout for
55:12one week. I saw the last videos of Carmen Rosato. He was like taking a huge amount of uh stop-loss
55:19like for 3 weeks, but he's still in profit for the month. Yes. That's the good part about scalper,
55:24the number of execution, and it's really easy to go back in profit. The second good part about
55:31trading with this model is that you don't need headache. Why you don't need headache? because
55:40the prediction part is not there. You are just paid to read what the market is telling you. So
55:47I don't need to start to say considering the angle of gun maybe the price will skyrocket
55:53to this price because this no just this is the market state. This is the location. This is the
55:59aggression. This is this is my trades. Mhm. And another good part, maybe this is the best part.
56:05I should have put this that you cannot do revenge trading because if you don't have the condition
56:11to trade when you trade large amount of size, you just don't feel confident to execute. Mhm.
56:18If there are not the condition of aggression just it's not worth it to to do it. So the the third
56:24part is just there is no headache in deciding and no revenge trading in executing something that is
56:32not there. Yeah. You know with projection I don't know if you ever experience it but sometimes you
56:36see something that is not there just because you want to trade. So you create the setup well you
56:41can have a bias and then if let's say one time frame isn't giving you that bias you can just
56:46filter through until you find one. Like our time 10 time frames let's say eight of them are long
56:51but you want to be short. You'll just go to the one that says sure. Yeah. You know. Yeah. Yeah.
56:55This is something that uh I also did it like our ego is bringing us to the condition that if we
57:02say in our mind that the bias for the day long as and the news are long we will just take every
57:08demand here because we think every demand that is getting break it's a fake and even down here even
57:14say it's taking liquidity till this wing doesn't get st out and of course this is a liquidation.
57:19So you also trade the reverse and then when you get destroyed you that's normally the last last
57:23resort right last resort. Yes. But another pro is that it's a high risk it can be a high risk
57:28to reward. It can huge risk to reward when uh it's not common. I need to be honest but when NASDAQ is
57:35pushing is pushing heavy and when you are in from the breakout of the level and you are because you
57:42need to consider that our target is the P. Okay. If you are here there is no P because you are
57:48creating value up. True. So you just decide to trail for the day. Trail. Yeah. Okay. Sometimes
57:53you get some 1 to 30 1 to 40. It's not common but it can happen. But even high risk reward like 1 to
57:584 1 to 5 that's a common reassurance. One to one to 2.5 is the minimum. Yeah. 1 to five is common.
58:06Yeah. 1 to 10 20 is not common. It only when I do 1 to 10 1 to 20 it means that you see on the
58:14NASDAQ 2% 3% for the day. Yeah. So it means that I really follow the market properly but I cannot
58:21do 1 to 10 if the market is doing 0.25 for the day 0.5 like I'm in tune with it like I I plus
58:28it's not like you're focused on risk-to-reward. It's just part of the model. You're focused on
58:33understanding what's going on and then reacting and following your model accordingly. Yeah. When
58:37when your model and when your primary focus gets to protection of capital and risk management,
58:45you increase the profit. Definitely like when you put your focus on something that you think it's
58:50not directly related is when you make the most amount of profit. Well, now let's go into well the
58:57charts I guess the actual trade examples. Yeah. So, as we've established, this is truly a strategy
59:02and playbook for real traders. traders who really want to not only trade but understand the markets
59:08at a deep level. So now we're actually going to go over trade examples on the charts uh of those same
59:14playbooks and uh what do we have in front of us here? So this is a orderflow platform is a deep
59:20chart and uh what we have here is volume profile uh distribution profile of specific consolidation
59:28area. So what I was explaining to you before is that you can make it stupid simple putting just
59:34daily profile. You can do this also from trading view. Maybe the volume will not be as precise as
59:39this or you can just do it um identifying the most interesting compression area. As you can see here
59:47they are clearly visible where the market didn't transacted higher or lower. It just stayed in
59:54compression. I use every day this area. And what I wanted to show you before is exactly this. You see
59:59here is the volume. Okay, this is the volume. This is how much volume is transacted per price level.
1:00:05This blue line is the value area. So every time you see the model in consolidation when it gets
1:00:11back, get back in target. Get back in target up get back in target down get back in target. This
1:00:20one will be stop loss. But you have the second model. You have the execution model of this in
1:00:26this consolidation. We need also to be honest that you don't identify it immediately. You need you
1:00:31can identify maybe from here you can take these two trades. This one is really uncommon because
1:00:36you start to see the real compression. Yeah. It's too early. Exactly. Now what is interesting
1:00:42is that you can frame also the delta. What is the delta? The measure amount of volume getting
1:00:50transacted from one side on one place level. the aggression and if you see here look how much is
1:00:56big the delta is exactly at the level where they accumulate the last time and created this extreme
1:01:02breakout. Okay, this one here I will also explain you later why the news catalyst is something where
1:01:11a lot of people think that the market is seeking liquidity but at the moment this movement is make
1:01:17because market maker go out of the market. So the volatility gets higher because you have less limit
1:01:24orders and in this case uh the market explode up to create a new level of balance. So in this
1:01:30case we have reversion model, reversion model, reversion model, reversion model and stop here
1:01:38probably aggressive model here breakout and we will go deep dive in the lower time frame because
1:01:45now we are in 5 minutes then we will drop down to 1 minute. This model can be used in every time
1:01:51frame like to give to the audience a little bit of reference. You can either do 15 minutes 3 minutes,
1:01:59you can do 1 hour 5 minutes or you can do the most aggressive one. That is what I do. 5 minutes
1:02:051 minute. Okay. So 5 minutes is to watch the breakout candle. Okay. This one I don't go deep
1:02:12dive inside it because it's impossible to execute. You see it went out of balance. No retracement,
1:02:17low volatility, low liquidity. So it's impossible to take. Then we will go to this one that is the
1:02:2423 is this morning. Okay. Okay. This morning we will see exactly how the model play out perfectly
1:02:32on the trend following side. So I will show you how also the model behaves in London session. Even
1:02:38if I only use this in New York session, the model really works as also reversion model in London
1:02:46and New York. Yeah, I want to show you the entity of the momentum to explain you why I do New York.
1:02:52This is New York. This is you see how much is compressed more retracement. This when you take
1:02:58it, it just explode. Yeah. And this is what I was trying to explain you before as the flow getting
1:03:04in tune with the flow. So what we do now that our area are clear, we can go to one minute time frame
1:03:14and we will start with the first one. Okay. What we have here is the previous area. This is the
1:03:20value area high. This is the value area low. This is the poke. Okay. So, we are clearly out
1:03:27of balance from this movement. You can either be aggressive or just say I want to clear out
1:03:36also the high. Yeah. So, I just want that there is no obstacles in my explosion higher. This is
1:03:43something that I usually do. I don't transact only when you break out. I wait because it can
1:03:47be the reversion model here, you know. Then what we do, this is the magic. We activate the
1:03:57orders that are getting filter for the amount of aggression. Yeah. Okay. So my filter usually is
1:04:06around 20 to 30. Okay. In this case, I think it's pretty visible. And this is the best example you
1:04:13can have. Look how much is balanced. Look what happens when momentum is building. So what I was
1:04:18saying to you even before the breakout, if you know how this stuff works, can you understand
1:04:24that something is happening here? You are going from small orders balance to someone buying
1:04:31aggressively and continuation aggressively. Also look at the amount of big orders that you have in
1:04:39bullish momentum and in bearish momentum. So you can clearly understand if you are following the
1:04:44flow or not. So the trades here is like I was saying before either the momentum continuation
1:04:53trades that you get framing the level with a huge presence of buy aggression and this is another
1:05:00model that I also show on YouTube that is just not because this stuff happens in one minute. Okay. So
1:05:06every candle is one minute. You can either be fast and use only big orders or just as I was
1:05:12saying before plot the profile from the beginning to the end of the impulse and say look let's zoom
1:05:21out in here what we have we have a lack of volume here. Yeah. So there is a huge area that we can
1:05:29use as a low volume node. Okay. So when you have the retracement and you get close to the area,
1:05:35you can decide to take this as an aggression or I will take this one as an aggression. Okay,
1:05:43maybe you enter here, you have the mitigation of the level and then you have just continuation.
1:05:49Now the more you wait to enter, the more it gets risky. Yeah. Because if you enter here, you are
1:05:57getting to a point where sellers can say it's too expensive the price. I went out of balance.
1:06:02But you want to be in fast and close fast. Yes. Okay. So from here you can just identify from
1:06:10when the aggression is still bullish. I will start to be a little bit afraid here. I will
1:06:19start to say look the market is compressing again. The sellers are starting to fight back
1:06:24this huge momentum. Yeah. So maybe I can put my stop loss in profit. Gotcha. Below this low. Then
1:06:31what happens that the market against you don't need to be a wizard. The market give you clues
1:06:37because this breakout you see it's participated by huge buyers. The sellers try to get control
1:06:44back here. But what the market print a week. So it means that they cannot control the movement.
1:06:51And I would completely take out the position where I see that because big sellers no follow up small
1:06:59sellers big sellers huge follow up and close on this candle you can go out you can go out on stop
1:07:06loss in profit or you can go out when you reach your risk-to-reward rates. Okay. Because with this
1:07:12as an example just to highlight. Yes. So as you say sellers no follow through but consolidation.
1:07:20Yes, we continue. We break out. We see the buyers again from the low. Yeah. Wick,
1:07:25but no follow through. Exactly. But could you say that these sellers are entering, they're maybe not
1:07:31getting stopped out, they're still in the market. So then when you finally see the sellers and then
1:07:35the follow through now, you know, you you use this buildup of sellers previously in included
1:07:41as well. What what I use ex is exactly what you see. What I use is volume spread analysis. That
1:07:47is the relationship between price and volume. So if I see like you were saying here sellers,
1:07:52okay, trying to push the market down but they are punching a wall. They are not going through. So
1:07:59what they are doing they can either stay still inside the position if this movement stop them
1:08:06out. Yeah. The market will accelerate of course. Okay. So what I see is that this aggression is
1:08:13the first one in all this movement that print this huge candle. Yeah. Why staying in a movement that
1:08:21is saying we are getting the control is like getting inside a world and being by the side
1:08:27of the weak parties like doesn't make sense. And from here you can see that participation
1:08:33is mainly by the sellers. Yeah. I want to show you something. I want to clear a little bit and
1:08:38get back remember how the volume is inside this area. Yeah. Okay. Let's remove for one second the
1:08:44big trades and let's go here. You agree that this is a compression area? Yes. Okay. Let's print it.
1:08:56You see that the market is not accepting below the value area because what happens is that here
1:09:03is transaction incorrectly but every time they go deep discount buyers enter aggressively and get
1:09:09back the the position here. This is exactly what's happening. Let's go on the today price action.
1:09:18And so we we saw one New York and we watch one London session and this is not a normal
1:09:24London session. This is a London session. This is after the bombing of Iran. So the
1:09:30volatility it's even higher than a usual London session because the market needs to
1:09:34rebalance this gap. Same situation rates. So if I tell you forget about everything, it's here.
1:09:43Just tell me in which area there is the major amount of delta aggression from the buyers in
1:09:50which area you can see. Would it be the buyers you say? Yes. Exactly this one. And if you see Yeah.
1:09:57I'm getting tapping in. If you see this is exactly how you can identify when it's an accumulation and
1:10:05when it's a distribution. Yeah. This is where all the traders are struggling like why accumulation
1:10:10distribution. But how can I identify objectively what's happening? If you see from this level,
1:10:16aggression of buyers catalyst. Yeah, let's go down to the one minute. We already in one minute.
1:10:23Perfect. We activate the big trades again. Same model. What we see? Buyers aggressive catalyst.
1:10:31Catalyst catalyst catalyst. Again, you see what sellers are doing? They are trying to push the
1:10:35market up down. But what's happening? They're getting [ __ ] anniated by buyers. So if you
1:10:44get the profile as before from the starting of the swing to the end of the swing, what you can see?
1:10:51You can see that volume is equally distributed here and you start to have a low volume from here.
1:10:59So in this case to follow the exact mo model, you will be unfilled in this position. Okay,
1:11:07let's go educationwise on and see what's happening and reading here what you can do considering that
1:11:15you are still in the same area. You see that from here to here they create a new dealing
1:11:20range new area. So you can do just the same from here to here and you can go deep dive inside this
1:11:28location. Yeah. Look where is the value area low and look where is the low volume node. You
1:11:35see this lack of volume here? Yes. So you have the low volume node conceding with the value area low
1:11:41conceding with this is free money. This is [ __ ] free money. You wait for this candle. You put the
1:11:47stop loss here. You target either because even if you want to target let's say here, okay, you
1:11:55are risking per contract $160. In the worst case scenario, if you want to be out really fast, you
1:12:00are risking 160 to make 500. Yeah. Okay. So the risk-to-reward is more than one to three in this
1:12:07case. But this is the excursion the market gives you. So you you see how the risk to reward can
1:12:13get really huge if you get in tune in the market. Yes. And the addition to the position can be done
1:12:21every time that the markets create a new eye. This a failed auction. It doesn't break out. But then
1:12:26it break out here. Okay. To the to there. Yeah. Again look zero volume here. like from the profile
1:12:37punching the wall I will not get this trade because I don't have aggression so it's not as
1:12:42safe as this one but again the bias is completely fine and this is the both of the model we saw the
1:12:52reversion model and the trend following model and the first time that I find out this myself was a
1:12:57h aha moment yes because I just went to order fluency so I can see before it happens how the
1:13:03volume is developing and also small exercise when the market gets taken back in control by sellers.
1:13:11Mhm. All these small volume then huge aggression from sellers but look also where the market reacts
1:13:19when it comes back. What is doing now? This is actual price action. We are not charting
1:13:24the past. Yeah. sellers in control where they will find the first problem when they get back
1:13:32to these aggressive buyers. Otherwise, they will continue to push the market down in this case. And
1:13:39when you see this case, it can be a punch on the wall because sellers try to push it down,
1:13:45but buyers protect the level. And if you see it closely, what is developing is a trend following
1:13:52condition because we are going after all this balance, we are going out of balance. This is
1:13:57the first breakout. Yeah. And they can go back to the previous point of control. So they have
1:14:04a long room to go here. And you will notice I don't know if it will happen live that if this
1:14:10level get tapped back it accelerate because sellers are adding to their position. For now
1:14:17it is out of balance print and it's going to rebalance to the pock because it didn't it was
1:14:22not a successful breakout. Yes, that's the reason I say always trend following or reversal. Wait
1:14:28for the second drive. Don't take the first drive because you can get tap in in a fake out. Yeah,
1:14:35that's it. It's not difficult. But I know it's a lot of information for the audience for the first
1:14:39time, but I think it's a lot cleaner than some of the order flow breakdowns I've seen before. They
1:14:46just make it hard to not let people understand. I mean different platforms as well um you can make
1:14:52it like so in this case with the what we would call the the bubbles for example but in terms
1:14:57of execution large orders. Yes. So if you filter filtered it so that it only shows specific size of
1:15:02orders. Exactly. specific size because you can take it on and off as well. You want to filter
1:15:07out the noise. No, you want to see what actual big orders are doing is the same concept as uh
1:15:13commitment of traders for long term. You are just watching the the participants that matter.
1:15:19If you move one contract in mini, I'm not interested in it. Just you can do
1:15:23what the [ __ ] you want. But if someone is adding 100 contract on NASDAQ on one minute,
1:15:27it's interesting. Mhm. Like the momentum in terms of price getting to this point,
1:15:32this high that we were talking about here cuz as we were talking about potential trades from down
1:15:36here. Yes. Uh what is there anything to the left as to why price is reacting at this area? I think
1:15:42there's a high to the left that we were originally looking at. You want to see where we are going.
1:15:49Is there anything of significance in this area where it would lead you? We we don't
1:15:54need to to guess. Okay. So, let's remove this part so we don't know exactly where it
1:16:00was. Let's print it and let's go down here. Okay. Mhm. Now, let's clean all the noise
1:16:13and let's go down here. Okay. As you can see in all this area the value area is this one.
1:16:21So I will make white the value area. So this is when the market considering all the profile the
1:16:29comprehensive profile also of the gap is when it's getting expensive for market participants.
1:16:35Okay. But if we get deeper we notice that the biggest peak of sellers you see this
1:16:42one. Okay. So this level can be something interesting from sellers perspective wise
1:16:54the market reacted from this value area is distributing and as I was saying to you probably
1:17:00is going back to the PC that is this level and it's exactly overlapping with the big volume
1:17:06trades. Yes. So the probability of a follow-up short now it's higher in this case even if they
1:17:17get before back to the pock and then redist red distribute back down but I want to show you also
1:17:22here from this profile was it understandable that this was the reaction level from the delta that
1:17:30is developing yes because this pro this supply is the real way way of plotting supply you are
1:17:38just watching volumewise when there is the most amount of executed trades not limit but executed
1:17:45trades this mean that the auction get too much expensive they want to sell off and in this case
1:17:51and they sell off till here then what happened here exactly is that the price get too low Mhm.
1:18:00to sell because it's getting cheap again to buy also for buyers you know. So from this perspective
1:18:07we have this buyers trying to aggressive no follow up sellers no follow up. So we are getting inside
1:18:14the decision range. Mhm. The first one that will get breakout, you will see a catalyst in
1:18:20that direction and probably the first level is this one. Cuz even in this case, for example,
1:18:25if this was to break the high, even though we might not be looking to trade this, but if we were
1:18:29looking to make a prediction, would we then break the high and then look to go to uh the high of the
1:18:34value area potentially or even the the previous I will say the P P first. uh like distribute
1:18:40against the PC and then if you need to refine an area where you can probably see a reaction
1:18:47I will say this supply here like you were saying not because it's the best level to react because
1:18:53the best level to react is the value area high but because uh uh this delta here it's really reliable
1:19:02on how much aggression is it giving. Hey guys. So, we've had obviously the biggest nightmare you can
1:19:08imagine on Chart Fanatics. As you saw there, we were middle of screen recording, storage issue,
1:19:14uh screen recording cut. We cut, no problem. We came back, uh we pressed screen record,
1:19:18but something happened. However, what we're going to do to make up for it, one, we're going to break
1:19:21down exactly what happened step by step after the fact, no problem. But we're going to actually wait
1:19:27until New York uh open and then we're going to do some live uh price reading then. um you
1:19:33know at an actual time where Fabio does trade and we'll be looking at specific things as well. So,
1:19:38we're excited for that. Hey guys, we're back. I promised you New York session. We are 30 minutes
1:19:43before just under 30 minutes before the session open. Um we can recap exactly what happened
1:19:49uh since we left as well and uh super excited for this first time ever. I don't think I've
1:19:54ever seen a video where it's done this where it's educational showing the concepts but then actually
1:19:59trading it live thereafter and you know calling out price essentially. I'm very excited. No one
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1:22:04into the massive 7 figure giveaway every single week. Now, let's get back into the episode. So,
1:22:11we are here. We are stuck in a range. We are on fair value. Before we treat to do a recap, we
1:22:16saw this punch to the wall, the aggression of the seller, the follow up to the balance area. And now
1:22:20there is the first piece of information that we can get that was not present before is this punch
1:22:26of aggressive sellers without follow follow up getting to the discount level getting back inside
1:22:32the range. So I think as I was saying before that this high for the day it's something that will get
1:22:39destroyed probably at the beginning of the market open because the structure that I see now even if
1:22:45I have the information that sellers are getting aggressive and building up here the structure of
1:22:51the market that we never need to forget is still bullish and as you can see this is the level where
1:22:58the majority of aggression is getting this is the level where sellers are getting really aggressive.
1:23:03There is a dry up of volume and as you can see a low volume node. This is exactly what the market
1:23:08printed here. So in 20 minutes we have the first setup probably that can either be breakout here
1:23:17breakout and test if the volume is supporting it. Otherwise we can get a buy from the discount but
1:23:23this will be more risky from here. You can see that they are starting to fight because it's
1:23:30pre-market opening. This is the reason why I never trade pre-market opening because you
1:23:35see the battle but you don't know who will win it because we are stuck in a range. So from the data
1:23:41that we have seen here the size of the bubble is controlled by sellers. So it means and also
1:23:46the price is going down. So they are winning the battle but we need to remember that we have these
1:23:51big boys here ready to protect the price. M so at the moment I don't feel confident to to check
1:23:57any any setup. I prefer that we check closely. We should expect the first drive not at market
1:24:08opening but 5 minutes before and people that trade will see it often like they are preparing the
1:24:13dealing range testing on the market opening and then getting in the direction. So what I expect
1:24:18is that if we are going to get really long, yeah, this eye needs to be taken before 20 minutes. So I
1:24:28mark this eye if we're going to get long. If we're going to get long. Now I will create some scenario
1:24:35that are all rule based. Okay. So let's remove this one and let's make some scenario. So the
1:24:41first scenario is that these sellers are going to get absorbed. Okay. Now if these sellers are short
1:24:48here, probably they are going to get liquidated here. If the price during market opening spike
1:24:53ups really hard, they are forced to close their position. Closing a cell will create more momentum
1:25:00long. Okay. Watching how much they are pushing short makes me think that they are either closing
1:25:07long position from here. either they are getting some scalp pre-market opening and price will get
1:25:15back to this level uh 21822 before skyrocketing long. If we need to be conservative or it's the
1:25:22only setup is break out here test the level only when you have a closure of the candle we go back
1:25:29to 1 minute. Yeah. So we get the real execution and uh the market now will prepare the setup for
1:25:36the market session open. So aggressive sellers this can be seen also at what traders call fake
1:25:42out. So the fake move before the opening and then collapsing, not collapsing but rising up. And as
1:25:50you can see, let's make a comparison. The sides of the ball, the red ball, it's bigger, right? Yeah.
1:25:55But the result is really bigger. Like with small volumes, buyers are getting better results. If you
1:26:00see here, so it's really important to see to plot. This is something that I do often to put a profile
1:26:08from the first ball to the last ball. Okay? Like this. and check who is going out. I show you. We
1:26:16can always hide the trades. So you have only raw price action and volume distribution and you can
1:26:23see the sellers are not yet managing to close their candle below the value area low. So we are
1:26:30still even in a small time frame and a small data range we are still consolidating and compressing.
1:26:36Yeah, the direction of the market is not clear at the moment and uh usually it gets really
1:26:44clear the direction for the day from 15 minutes to 30 minutes inside the opening of the session.
1:26:51Cut. So it's normal. It's totally normal what's happening. Now they are loading position. Now
1:26:56this one it's already a big information for me. If this candle stays like this and we take this high,
1:27:04you can also try the the aggressive setup. But we will only use the model that I explained before.
1:27:10We will not because people can get confused with too much information. So let's let's
1:27:15go easy. But as you can see, they put aggressive sellers here, but the followup it's almost zero.
1:27:22Why? Because again, the buyers are protecting this position. Yeah. And in the overall bias
1:27:30if you see what's happening at the moment is that from the previous range of compression
1:27:36the market tried to break out. Yeah. But it failed. So structure-wise we are still long.
1:27:45Now let's remove all the unnecessary data and let's put the big trades. And one thing
1:27:51you mentioned was that those big trades pre previously when we were looking at the charts,
1:27:57there wasn't that many because we weren't in session yet. The session had getting huge. And you
1:28:01said like when we're in New York session, you're going to see it like a so much and we're not even
1:28:06in the session just yet, but you can already see an increase. You know what I like about this about
1:28:10these tools and these platforms that volume is pro um bulls are proportional to volume. So when there
1:28:17is too much volume and not clear direction, your market get floated by bulls. So it's not
1:28:23visible the price and you are forced to stay out because you cannot see what's happening behind.
1:28:27So it's like an insurance on your hand to stay calm like do not do anything and uh what I would
1:28:35really love and the my favorite setup possible is when market explode following up by green
1:28:44level and you can just jump in at the first level when it pulls back in a low volume node. This is
1:28:51amazing. Now this is totally normal and this is the reason I strongly advise not to trade
1:28:57like 10 minutes before the session, 20 minutes before the session because you will be liquidated
1:29:02and then maybe your direction was right. Yeah. But it will be [ __ ] up by volatility. This is
1:29:07something that not all traders take into account the volatility range can change by session.
1:29:16So a model that works for runon session it's not guaranteed that will continue to create alpha and
1:29:22generate revenue in the new year session. An example of this is the mean reversion model.
1:29:28You will see now if we apply m reversion model here we will be get destroyed by market and you
1:29:33will get also slippage because it's normal. It's compressing here. Still the entity of the sellers
1:29:41is huge but there is no followup. What does it mean that someone is absorbing this order and if
1:29:47they are absorbing this order if you watch only color you say it's controlled by sellers but I
1:29:53still have my narrative long still think that we are going to get the high for the day momentum
1:30:00is building up we are getting 10 around 10 minutes 13 minutes before the session and as I told you we
1:30:06are going you expect that high to take to target the design now what can we expect when we target
1:30:13like explosion like acceleration like we were seeing before. Why? Because these huge orders
1:30:20are getting close. They don't want to be before session. Yeah. With this heavy and being in the
1:30:27wrong direction. Yeah. So they tried to anticipate the fall down of price but as you can see it's not
1:30:32going really good for them. So we are going to see when the market approach exactly this high.
1:30:43as of now still not getting broken. What we want to see is this green balls here
1:30:51like we did in all the previous situation. Yeah, this is a good setup for follow-up.
1:30:58Aggressive setup if we want to cover everything. One aggressive setup can
1:31:02be the anticipation on the first ball with a stop loss below the sellers to get to the
1:31:09high. But it's a setup that you are still trading the noise. Yeah. So something that
1:31:14you cannot expect will have the same way rate of a good frame trend following setup.
1:31:23So you see when you get back inside the range the balls are so big that you cannot even see
1:31:27what's happening and this is keeping you away from interacting with the market like transactioning
1:31:36in terms of like what parameters if any or settings have you put to
1:31:41identify these large orders? Is there specific for Yes. Yes. For the five minutes and one minutes for
1:31:48New York session you can use 30 contract as a filter. 30 contract and um um during London
1:31:55session you can go with 20. It's it's pretty accurate like this and so the larger it is that
1:32:01mean it's more than 30 the more maybe these are 100 contract got like so big and I created like
1:32:06this proportional so you don't need to click on it see how much contract but you immediately
1:32:10see that there is a big sell aggression there got like it's see sell I was expecting that the I buy
1:32:18would but sellers so they are still keeping here why before session they are still keeping here
1:32:24because the direction is not clear who want to transaction here when you can get whip side high,
1:32:29whip side low, you're out of the market. Yeah, you are getting liquidated with every direction. So,
1:32:35and these buyers or sellers, they can be anyone, right? They could be, you know, a retail trader
1:32:39with large capital or it could be your funds or whatever it may be. Exactly. Exactly. Now,
1:32:45an information that we cannot unsee is that at the eye, they are still loading short even if
1:32:52the market is going to push the eye. So the the narrative it's a little bit shifting because if
1:33:00this low gets taken we have this breakout is interesting also the short till here why
1:33:08I will not take this position because the whole picture is long so why should I take one to one
1:33:14risk-to-reward when I can wait and get a 1 to 3 1 to four 1 to5 this is the the model we need to to
1:33:22use and the model is keeping you you out out of lot of trades like we need to be evidence
1:33:29based and oriented on a large number of sample. Executing 25,500 sample in a world cup can give
1:33:36you the taste of what's worth to do and what's not worth to do because maybe one times out of
1:33:4210 now we go short. Yeah. But all the other times the seller getting destroyed and the test is here
1:33:48and you just lose. Yeah. To get so small movement. That's because I think that's one thing that's
1:33:54universal across any trading strategy is that you focus on quality. Yes. Rather than just anything
1:34:00that could work or you know this has a chance of working and it could work one out of 10 times or
1:34:05whatever it may be because I feel like that one time you do take and it does work. It always just
1:34:10reinforces you the next time to take it again. Right. Take it again. Take it again. And you know
1:34:14it might work two three times if you're lucky and then the next 20 30 times it's not going to work
1:34:18but you're still thinking on those two or three times it does. Exactly. Versus when you have an
1:34:23actual plan, you know, quality trade playbooks and you follow those playbooks, that's where
1:34:29your consistency will come from, your longevity will come from as a trader. That's where you're
1:34:33really going to start to scale your journey. And scale your journey doesn't mean that it's going
1:34:37to happen fast. But what it means is you will have progress. And the funny thing is it will
1:34:43happen faster than the alternative of yes road is the fastest road. So it's always like this.
1:34:49Now what I'm doing in precession is marking up the biggest delta volume. Yeah. So I want to know so
1:34:56delta volumes on the left right? Yes. I want to see at the market opening which level I can see
1:35:02that are getting tapped. I want to use different colors where use just deep red for this one.
1:35:11And for the buy part, I take the swing on the low and I see what's the level with most amount
1:35:21of volume. That clearly is this cluster of by volume. Yeah, to be honest, there is also this one
1:35:27is smaller but is still here. These are the level that we can see in 7 minutes. get and from here we
1:35:39already know what to expect when to expect it. So do you sit on the 5minut time frame when marking
1:35:45out your analysis when it comes to execution wise one minute? Yeah. Yes. Clearly like this.
1:35:56Now chart is only showing us the levels color. We can see the aggression and we can see the actual
1:36:04execution. So now we don't need 5 minutes anymore. We can just go down to 1 minute.
1:36:11Can zoom in. You see how much they are big when you go here. You can see clearly that this
1:36:17aggression at the moment is getting completely absorbed. Yeah, this got absorbed. Do you ever
1:36:23think like for example in this case this person tried to sell, got absorbed. Could that be the
1:36:29same person like stacking into a trade or is that not sort of how? You cannot know if it's the same
1:36:35operator but for sure you know that these traders are in draw down and there is still interest in
1:36:40the sellers. So what I can see is that they are trying to build a sell position and they will be
1:36:45forced to close if market volatility spikes. So if I get these aggressive buyers and all these
1:36:50sellers needs to close the position we arrive here the market opening and we are closed because it's
1:36:57324. This is the first moment I would expect. And so in this case, if price did break above
1:37:02this level, you're not interested in trading that to the next level. You're interested once
1:37:07price gets to that level. Exactly. Okay. Exactly. Because I I need to see. But would you say it's
1:37:12still important, sorry, to have this context even if you're not looking to trade to that next level,
1:37:16it's still important to understand what's going on because you are training for the procession
1:37:21procession and creating a narrative. So when you know how to do it um you are still understanding
1:37:29with your subconscious mind what's happening because you need to be really fast. Yeah. And you
1:37:34need to reason fast and if you don't do it and you do only for your setup on 15 second and 1 minute
1:37:41is not enough fast to then execute at the right moment. You see how much volume and interaction
1:37:46is starting 5 minutes before like I told you not at 30 5 minutes before they are preparing
1:37:51the order from what we can see here this is a huge information aggressive sellers still to this level
1:37:58buyers with better results all these are getting absor absorbed this is not my narrative getting
1:38:06wasted or this is my narrative getting confirmed so even more I should expect now that either from
1:38:12here or either from Here we reaccumulate in the last 5 minutes and we shoot up. All these sellers
1:38:18are in pain. They need to close and the market create an expansion move up. Okay, it breaks. I
1:38:25can take the long from there and I'm done for the session. Like one one setup with high win rate.
1:38:33But understanding the narrative before makes you also understand market participants how they are
1:38:39thinking and if they are proven wrong. Yeah. With this amount of contract you cannot hold
1:38:47anymore. Even if you have a millionaire account you need to close sooner or later. Yeah. Are these
1:38:52market executions or they market execution not limits? Like I never watch limits. Like you can
1:38:57get to feel a taste of the market but because the limits apparently they can they can cancel. Yeah,
1:39:03they cancel. So they what do they call it? Spoofing is it? Is that what? Yeah,
1:39:06they call spoofing like putting order to create market pressure then removing. It's manipulating
1:39:11the perception of other market participants. But with execution just these are executed
1:39:17market. There is someone that is with huge sell you know there if you if it close you
1:39:23see it. Yeah you see. So uh in this case so in the first minute of market opening you will not
1:39:31see the chart it would get balls it's it will get like something like this does does this uh
1:39:40large aggressive buyer that failed up here does that make you yeah you are getting good you are
1:39:44getting this is an aggressive buyers that created a failed auction so the buyers here got like they
1:39:51tried really hard like this but the sellers won here in this battle also the sellers won. Okay.
1:39:57Because they are transactioning down. Yeah. So in this that's the reason you wait for your
1:40:02confirmation and you don't jump here because even if the bias is long you don't know if
1:40:06they will reach here or the second level that attract. I only know that I only know that I
1:40:13want to be in if this level gets broken. Yeah. So, let's see what they do. 3 minutes before
1:40:24a setup for a scalp position. A little bit more risky is if these sellers don't have a follow-up
1:40:31and got absorbed by buyers shooting up here. But this is a risk position. But this can be I
1:40:38show you only to to give to the audience a taste. this one like risking $300 and getting $1,100 is
1:40:49not a stupid position. It's just a position that you are taking inside the noise. Yeah,
1:40:54I can take this kind of position only if I'm sitting in profit for the day. Okay. Like it's
1:40:59it's not uncommon that I take them but I need to use profit and not use market um like um account
1:41:07equity. Yeah. Because using house money, right? Yeah. like before I need to take money from the
1:41:12market then I can take this kind of trades the win rate it's lower on this but if you consider the
1:41:18risk-to-reward it's uh like one to four so it's it's pretty good I just put this risk to reward
1:41:25because I want to let you understand that if these sellers fail they will catalyze up now I need the
1:41:30first minute if this one gets broken the setup is not valid but if in market open at um 3:30
1:41:37you recover this level like and this one gets not broken. This is the target. So let's see how the
1:41:44market will behave from what we are seeing at the moment. Sellers one. Yep. Sellers one. Buyers one.
1:41:53Yeah. Here. So you are getting a bias and a level that start to get interesting. Let's zoom in. It's
1:42:02not visible. So considering the platform, you should not interact in this position even before
1:42:07because you can't see. You cannot see what's happening here cuz the first execution can be
1:42:13taken after market open and we are still before. So one trigger can be the break of this eye for
1:42:20example for a long. So now that we are getting inside if this eye get broken a really aggressive
1:42:26position can be entering at the break of this with the stop loss here targeting the high and I think
1:42:30it's even more than uh as a riskto-reward even more than one to to four. It's 1 to5 probably.
1:42:38So market is opening. They didn't break the high. So no position gets executed at the moment. Now we
1:42:46are in the second buy area. Yeah. So we need to check how the volume is behaving at the moment.
1:42:51Now these traders are in profit. Yes. All these buyers that position themsel before the opening
1:42:59needs to close position. This will bring price lower. All this movement is made by them. Now,
1:43:08now that we are in market opening, we can start to take position or do analysis that we can actually
1:43:15use. So, let's see the the first information that we have is that sellers still want this
1:43:21battle at the moment and they are getting stopped only here. Okay. So, still in the noise remember
1:43:30our rules till we don't get here the premium setup is not executed. Yeah. So inside here what
1:43:37can be something interesting for us? The first information that we can have is sellers really
1:43:43aggressive here that don't have a follow-up short. Yeah. So if this candle start to get populated by
1:43:49a lot of sellers but get back here. Yeah. This can be a long but again it's a long that you can you
1:43:57take inside market ranging. So let's just wait here because you had a you have a level beneath
1:44:06this right and towards the low. Uh I think the main level of the buyers are getting destroyed.
1:44:13Yeah. So the only reason I can engage in a risky position here is if this one prove me that it's
1:44:21a fake out. How can they prove me that it's a fake out? They need to recover all this. Yeah. This one
1:44:27needs to be a full week and they need to break up again from this high. If they don't do this,
1:44:33you see sellers are completely dominating this market at the moment. So not engaging here.
1:44:44You know in price action you can try this long because you don't see
1:44:48this. So you see you think it's it's retracing. I can buy this count. No,
1:44:52you you you probably think like break and retest the level. You know,
1:44:57this is this is something that if you are price action trader, you cannot know because you are
1:45:02not good but because you don't see that they are willing to sell stronger at lower point.
1:45:08Yeah. So the auction is getting short. Which one is the first level we can protect? We need to go
1:45:16with the profile on everything they build also during London session, not only during the range,
1:45:31this big area and this low volume node like also Carmen is doing. This is a low volume
1:45:38node and this is the delta. Yeah, this is the last protection level. If this one is breaking,
1:45:43they are recovering this cell and they are collapsing and he's in in that scenario what would
1:45:48you do? Would you just then in the scenario that they get sell my narrative will change because
1:45:55they break a balance level not on the up on the downside. Okay. So my day is short. Yeah. If my
1:46:01day is short I will still use the same model just I will not get long I will get short. Gotcha. Like
1:46:06my long day gets activated if we break this. Yeah. My short day at the same time gets activated if
1:46:13we break the compression range that is all this range. If they arrive here we can try something
1:46:20but here there is something that is undeniable. They are on this level. They are pushing out but
1:46:27I don't see a lot of follow-up shot. Yeah. So here the buyers you see how many volumes so much. Yeah.
1:46:33Here the buyers are protecting it limit orders. So either they slice through it, but if they start to
1:46:41recover and they get back inside the range, this is a a setup that also Patrick Neil is using with
1:46:46volume. And you see the good part about volume is keeping you up. Is keeping you out of the market
1:46:53when it's not ready here because let's go again to the narrative here. If it breaks the low, yeah,
1:47:02we get long. It continue down. Okay, here. If it breaks the high, we can go here. Why? Because if
1:47:09the volume don't does this, this means that the sellers are controlling all this market
1:47:13movement. Yeah. You don't need to predict. Just need to see what's happening here is the first
1:47:18time for the market opening where buyers are protecting a level. Yeah. In an interesting
1:47:24in an interesting situation. So this one can be the first long position if it gets confirmed by
1:47:30a little bit of buy aggression. At the moment it's only sell. Yeah. The moment is only sell.
1:47:35So now the only thing to do is wait what what they can do. Now one position that gets really
1:47:43interesting is the squeeze of the trapid sellers. Mhm. When is the squeeze of the trap sellers? When
1:47:52you recover all the aggressive sellers. Yeah. They are getting fake out. So they are willing to close
1:47:57the position and the market is accelerating high. You know let's see what is happening here. This is
1:48:04the first footprint of long yeah position from the level that we saw. Still someone can think
1:48:11why you don't take a long position here because at the moment if you see who created the swing like
1:48:17we were talking before is completely dominated by sellers. Yeah, this is a really risky position.
1:48:23If we start to get back here we can take position on the breakout with stop loss below the level.
1:48:33But remember the model is one. You need to break and test this level. Otherwise, you just stay out.
1:48:38When this level gets broken, the game start. You can add the position, you can follow up,
1:48:45you can do a lot of things. Now, I want to show you how much it's useful to see this volume in
1:48:50higher time frame like five minutes. From here, it's clear. It's clear because you see we agree
1:49:00that this is the low volume node. Okay. The profile distribution achieved the value area
1:49:06low. Mhm. Okay. So, we are on the value area low. The sellers didn't got a follow through. They took
1:49:11the low. Yeah. Okay. And created a failed auction. People call this manipulation. They try to break
1:49:17out and they failed. This is the reason we will get here. Well, it's what you said um you know
1:49:22before the open is going to set up and then it will whipsaw take out one side. This is a model
1:49:28like the only things is that I don't get inside when they are like so aggressive. So my role is
1:49:35not to predict when they will stop. I just wait that they complete this movement. You see all
1:49:41this was a fake. The narrative is still buy. Mhm. All this movement gets absorbed one with
1:49:47which the narrative when we break this level. We broke this level. No. So we are still buy.
1:49:55If you want to clear the position and for the New York session get a better tune of the market,
1:50:03you can raise 240 at the contract size. The contract and you will it the situation will
1:50:08be a lot clearer. You see? Yeah. Situation now it's clear buyers got more than 40 contract
1:50:18here. They are just putting a lock and say below this level you don't go like you you
1:50:23try to sell with two I absorbed everything and they are recovering all the buy. Now all these
1:50:29sellers need to close the position. Yeah. Which then causes a squeeze squeeze like
1:50:33if all these sellers close the position the market is jumping and when it gets to this
1:50:39level you see the acceleration that we saw before but short. Yeah. Like the opposite.
1:50:52In the video that I made with Andrea, all the setup that I took are based on this model like
1:50:59squeezing the other part. Yeah. To get the acceleration and be immediately break even.
1:51:04Yeah. Yeah. Be able to move at break even really fast. Would you say that is one of the necessary
1:51:10skill sets when scalping at this level? Yes. like uh being fast and also creating shortcut
1:51:17on your platform. Would you say that you always have been like been able to move at speed as
1:51:22a trader or is that something you had to train? No, we are we are we are human reads. I will be
1:51:26really honest. Sometimes I made big errors like um you scale inside the position but you scale
1:51:33you you don't notice that you are scaling not by one mini contract a time but we are scaling
1:51:38with five contracts. There is a huge amount on NASDAQ like one contract is really heavy and
1:51:43you need to find a good way to scale out and you are with like in scalping you need to be
1:51:48fast and sometimes you still make errors. Yeah. Um because a lot of the time there will be human
1:51:54errors at that point right and then then with this volatility look what what the market did
1:51:58as I told you before taking the high taking the low and then being at the starting point like in
1:52:05the first 10 minutes of the session we didn't do anything we just liquidated the low liquidated
1:52:10the high that's the reason you don't engage before now I want to show you these sellers are selling
1:52:19this momentum yeah with zero results Now we are getting back to this. When we get back to this,
1:52:25someone will need to cover their position. Yeah. When they need to cover the position, the momentum
1:52:29will start to build up. So let let's see what they do. Still my narrative didn't change. The
1:52:36only thing that could change my narrative is the breakout of the level. Still compressed
1:52:42inside here. And we recovered also the major delta point here. This means that we are above
1:52:50the strong selling level of the distribution. And if we are above here, we are also above
1:52:57the value area high and you remember before the reaction that the market had on the value area
1:53:03low. Yeah. Like it completely used this as a pivot before collapsing down. Yeah. The same is for up
1:53:09like there is an overlap of this area and now I think they are so aggressive. If you wanted
1:53:16to be aggressive, these are, you know, this was a trade at the low you could have taken, but again,
1:53:21it's like it's not wrong, but it's super super aggressive during that time window that really
1:53:26isn't ideal. This one you should not expect more than 40% we rate. So, you can take it, but
1:53:32remember you are trying to take a falling knife. Yeah, a lot of times you will get cut and you are
1:53:37buying the contrarian momentum. So you are trying to stop the price with the big market participants
1:53:45after a lot of test and here it's more easy to who is winning the battle. If this low gets broken
1:53:51sellers are winning. If this eye gets broken buyers are winning the battle. Okay. Now you
1:53:56know who won the battle. Now you can engage. Yeah. Don't try to anticipate. This is the main reason
1:54:03why a lot of traders they try to anticipate what the market is doing before the market does it.
1:54:10and they get so attached to their narrative that they are not willing to change. As I told you,
1:54:15my narrative was long from the beginning. The market did an aggressive selloff. I was ready
1:54:21to change my narrative and say from this moment, if it breaks, I start to search for short. Okay.
1:54:27I'm not marrying my position. I don't care. But you have specific levels that invalidate
1:54:32your buys. Yes. Getting excited. It's not so big the volatility today to be honest. We are on the
1:54:395 minutes. I think they are waiting if there is a news of the other of their bombing because yeah so
1:54:47for context over over the weekend today's Monday over the weekend the US had bombed Iran in three
1:54:54different sites. We gapped I believe lower on ENQ. This is ENQ right? So we gapped lower% the
1:55:00gap we recovered the gap uh which we then started recording earlier. We then actually sold off and
1:55:06then recovered again. So we're kind of in a range at the at this current stage. The squeeze gets
1:55:13completed here. Yeah. Like if they attack this eye and all these are squeezed. So here we can expect.
1:55:21So it would be similar to what we were looking at over here and we saw this here. We saw this
1:55:25here and they build momentum. Now the squeeze that you see in London, it's much less. Yeah. Less the
1:55:31squeeze that you can see here is three times this candle. It's pretty aggressive. Mhm. And what is
1:55:37it that you do when you are you know active like say is in a different setting we're recording and
1:55:41everything even though you're going through the same motions but when you are waiting for these
1:55:4610 15 for the price to get to the right areas for you do you still sit and watch or do you have it
1:55:53up maybe some alerts and you're doing other things you can put alert on levels now considering that
1:55:58I don't want to transact inside here my first alert will be here so just here yeah first alert
1:56:04will be on otherwise you get the temptation Yeah, like I I've been I've been tapping and now he's
1:56:10controlling himself. Yeah. Uh the temptation to to get because here it was really clear that the
1:56:15auction was failing. A lot of aggression and no follow up. But it's not your model like you are
1:56:22trying to put some intuition inside the model that is already proven to make money. Yes. And would
1:56:29you say that when you first started learning uh and to to really look at the market in this way,
1:56:34would you say that you fall guilty sometimes in the beginning of as you said trying to use
1:56:40intuition and trying to maybe overpredict and over trade almost because you feel like okay I
1:56:47I can see these sellers or I can see these buyers and you start taking executions outside of your
1:56:51model. Yes, of course you know the Dunning Krueger effect. Mhm. when you introduce in your mind a new
1:56:57concept you think you understood everything like if I introduce now order flow to a price
1:57:02action trader you will say oh it's so easy like there are bolts I take there are no bolts I don't
1:57:07take no it's not like this so in the beginning when I introduced it and my model was this and
1:57:12they see aggression and not follow up even if the model is not completed and it's not I say but why
1:57:18it's free money I jump in and then I say when you journal you understand the error that you did so
1:57:23when Your mind is cold. You understand what's the real error. Not before. Yeah. They are starting
1:57:29to squeeze. You see, they try to break out the eye. A lot of buyers aggression, but the sellers
1:57:36still are pushing down limit orders like punch on the wall from the buyers. But the fact that
1:57:42they already reach the eye, it means that the sellers are not protecting the level anymore.
1:57:45So for example, let's say if we at this point we see buyers let's say we don't close above and is
1:57:52our likely scenario from here probably to get to here and then see again if buyers or sellers went
1:57:58around. Exactly. Yes. Why? Because this is the level of protection and uh the candle is still
1:58:04not closed. So this is still building position. But if you start to see rejection this is a level
1:58:09that you can revisit. Now the point is that if you enter here where you put your stop loss because
1:58:15you see how much is big this candle if you want to be safe you will put your stop loss here. It's
1:58:20not worth it. Yeah of course like it's um that's what I was saying when volatility expand you need
1:58:26to make a lot of consideration that you were not making in long session because one candle in long
1:58:31session you can go short here and protect you here and it's okay. Yeah. Look here you need to protect
1:58:35here. It's not worth Yeah. It's just not worth the trade. And yet Troy will still take it. Yeah.
1:58:42Because of that as you say that that trying to predict or try and say okay this is what's going
1:58:47to happen. It's broken. Yes. Okay. I engage. I can start to engage to go here if I have some
1:58:54profit for the day. Yeah. Otherwise no this level we stop here. But you see this buy here getting
1:59:03no follow through. Y some trader that is getting new at order fluency. Maybe I can try a short from
1:59:08here to here. Okay. Where you put your stop loss here? Is it worth it? No. Completely. No. You are
1:59:14risking more than you are expected to. Exactly. In terms of a position at the high, you know,
1:59:20the one that we're waiting for and looking for. Price breaks above. We do our confirmation. We
1:59:24get in. Do you already have a preset uh target in mind? Uh or is it something that will depend on
1:59:32once we've broken? So the first target is the the one with the highest win rate. It's the previous
1:59:37daily high. Okay. So if the previous daily high was above, we can go to checking. Now let's check
1:59:43here because they are building. They're building. Yeah. And they are preparing the squeeze like as
1:59:48you can see is the first time that a candle can accept here. Now if this was happening here,
1:59:53this is a trade. It's happening inside. So still if they accept here once this is a
1:59:59breaker test. This is a real breakary test. like covering yourself below the aggression
2:00:04and going through the next level and it's still 1 to three 1 to4 risk-to-reward ratio. Okay,
2:00:09you see how much is different watching only candle and watching the momentum that created
2:00:14this candle to break out. Yeah. Like you know that this is the level if you want to trade and
2:00:18retest you need to protect yourself. Yeah. And the first target that makes sense is the level
2:00:23that we considered before. We are not reinventing the wheel. Now considering that we still didn't
2:00:28reach the high. I can go here and mark up the previous daily high. We have a lot of room.
2:00:35You see if this is the first target, we have a huge risk to reward. If it breaks here and test,
2:00:40it's 1 to 10, 1 to 20. Now sell is trying to stop back in. Yeah. Mhm. Failing. Failing.
2:00:54So let's recap what happened. The narrative was long from the beginning. Yeah, before getting us
2:01:01the opportunity to be right, the market took the low. Why? He revisit deep discount area. Then he
2:01:09validated the first level of squeeze. A good squeeze is when you approach the level and you
2:01:16see aggression and at the same time you see follow up from price. This is a good squeeze. Yeah. These
2:01:21sellers are forced to close position here and what they will create more and more momentum.
2:01:25Yeah. Okay. when price did come down here because obviously we're recording this and we're live and
2:01:33what are your thoughts like what's going through your head? Do you feel when price is down here
2:01:38like oh you know I I I was thinking like no no I was thinking to be honest that you will break the
2:01:43law and I was already preparing my mind for the narrative to be short for the day. I only start
2:01:50to change my mind when all these sell bubbles pop with this buy. Yeah. And I see that all this have
2:01:56zero effort that one. So I I trace this and I validated this is a low volume node. It means
2:02:03that there is not a lot of transaction here. The first transaction is this level where there is a
2:02:08huge delta on by volume. Yeah, this is exactly what stopped price this bunch of information
2:02:15profile low volume node aggression and lock in from buyers is something that can validate. But
2:02:21as I told you I never told you I will go long from here. Yeah, because it's just too risky. Like you
2:02:26can get lower. Now, this one was the only position that I told you if you are a breakout traders and
2:02:32you want to take, you can take this position and just trail your stop below your bubbles.
2:02:37Okay? And take if you were to buy there, where would your stop be? Under the candle low. If you
2:02:42want to buy here, your stop loss can be below the Okay. So, it's really aggressive. Like,
2:02:48let's say that the market just test this movement. Okay. Mhm. and your stop loss can be below the
2:02:54big orders. Yeah. So, it's a stop loss of $200 to make 600. It's one to It's not bad. Yeah. But it's
2:03:03still a position created by market noise. Yes. Is still not my setup. Still in the ranges. For
2:03:09sure. There will be some order flow trader that is profitable doing this. Yeah. But I will never do
2:03:15this because the probability that the market with the volatility of New York session will get back
2:03:20here and do this move movement. Yeah. And create just a week then you are right on your position.
2:03:25But maybe it creates a week is really high. So in this case we were lucky. It fell to the to
2:03:30the pip it rejected and when if this breaks the low we are already zero risk. Exactly. So you are
2:03:36fast. You are really reasoning fast. But if I had to advise to a friend would I use this model? No.
2:03:43because it's it's a lot of stress. Imagine that in one minute on in five minutes you have to trail on
2:03:50the next block you need to be really fast. Imagine risky $5,000 on the position. Very true. Yeah. You
2:03:57need gut. But when the the range of the New York session is clear and you have a breakout of the
2:04:04compression, you have data supporting this to the point that there are a lot of studies about
2:04:10u initial initial breakout. Mhm. Like you know the model initial breakout when mark um New York
2:04:17American equities break out the low or the high of the New York opening there is a huge probability
2:04:24that they will continue. So I'm using a structural inefficiency of the market. Yeah. Just timing it
2:04:30better than usual traders because I have order flow but I'm not reinventing the wheel. Of course
2:04:36is nothing exceptional about it. And this is the fourth time that in this timeline we come back
2:04:42to the level that I told you and we still reject sellers zero result. Buyers aggressive new auction
2:04:49if it breaks this low risk zero. Yeah. Like it's incredible to witness. Now what do you think to
2:04:57the the term or statement that people make in terms of buy low, sell high? Because in this case
2:05:02what we're buy low, sell high. It's uh I'm totally opposite to it. That's what I'm thinking cuz I was
2:05:09thinking like at the low there where we you know I would look at and I'm sure a lot of other people
2:05:13would be like oh you put it long that would be a great place to buy but as you say that yes you
2:05:18could but on the most chances no wait you can if you are like uh uh if you know the fair value of
2:05:24the asset like if I would be doing this for a car that I already know the market price. Yeah,
2:05:31that that is stable the market price. I can buy low and create my business around it. But market
2:05:37there is not too high of a price for one asset. Yes. Because the asset price change constantly,
2:05:44you know. So is by law low compared to what exactly? Low compared to option flow. It makes
2:05:51sense. Low compared to order flow. There is no law. You are buying high. I will never sell this
2:05:58movement. You see what it's doing now? This one is already zero risk. Yeah. Okay. Some minutes now
2:06:06starting to get interesting for sellers because we are reaching what the level that we mark out
2:06:114 hours ago and is still holding. Mhm. What would you expect you would you expect price to or would
2:06:17you want price to break through aggressively or would you actually not mind if price reaches
2:06:22the level, sells off a bit and then breaks uh thereafter? was like the the prime like the ideal
2:06:29scenario. I expect the sellers to get destroyed as what I told you from the beginning. I expect
2:06:34aggressive market participant to step in as soon as we reach this high. A little bit of pullback
2:06:40and then going uh going aggressive as I told you by the first 15 to 20 minutes of the session the
2:06:48direction is clear and it's exactly 20 minutes for me. The direction is clear. Yeah. First position
2:06:54was breakout trades to get the high but you are still in line with statistic distribution. Why?
2:07:02Because you are getting a movement. Yeah. When a level gets broken supported by volume and you are
2:07:08getting out your position before the level. Yes. So you are not trying to you see if we keep the
2:07:14target to the high it's already rejecting. Maybe now we does a whips and then explode. Exactly.
2:07:19was amazing to see especially for the fact that okay we didn't take this position because didn't
2:07:24fit the playbook didn't fit the we don't have the house money from trading earlier for example to
2:07:28take the risk and the that's I think so important to highlight because a lot of traders out there
2:07:34think you have a bias anything that fits that bias you take so in this case for example you you let's
2:07:40say you came in long and you would take a long you try to take a long at the low there you try and
2:07:46take a long there you try any long that's possible you try and take right in reality you have your
2:07:51playbook. It doesn't matter what your bias is. As long as that playbook hasn't presented itself,
2:07:55you do nothing right on your hands. I think they will get a lot of value from conceptwise from
2:08:00these trades because this is explaining exactly sure it was beautiful cuz even that I would say
2:08:08that that's not the it's not the worst trade in the world, right? It's it's with the bias. It's
2:08:11one to three in three minutes like it's worth it. Just depends on your playbook. Yeah. all. Yeah, it
2:08:18depends who you play with. That's what I'm saying though. It's It's incredible to be able to see.
2:08:21Okay, we had a bias. Here's a trade opportunity. Played out beautifully even with the explanation
2:08:26as well in real time, which is most important. Um, yeah, it's phenomenal to see and we're excited to
2:08:31see how we continue to push through. Now, um, what we should expect here is revisiting this
2:08:39area. Why? Aggressive buyers failed, not holding failed. We knew exact we placed our target exactly
2:08:48where we should expect a reaction. Now there are two question. First question is how much deep will
2:08:54be this retracement. Yeah. Second question is we want to be in a long position if we get back
2:08:59here. No. Why? Because it's still not clear the dealing till these big boys don't fail and says
2:09:06because the good edge is that if this big boys gets broken. Yeah. This needs to close position
2:09:15and if all these dealing regions getting in suffer we are skyrocketing high and you will say how is
2:09:22it possible that we are skyrocketing high if we have a situation like this from global macro
2:09:28perspective that's the good part about order flow you the market already includes all the
2:09:36information possible you need to read what the market is telling you not putting the preconcept
2:09:41of no it will not do this because there is that no your role is only to read the data the market
2:09:46itself the market itself there is no better mentor than market so is it the case normally then so
2:09:53we'll see at this point this is a previous auction where sellers had won and in this case because
2:09:59we've seen buyers try to step in fail get absorbed we then would expect the previous auction to be
2:10:05revisited to see who's going to win that battle and essentially it's a constant flow of what is
2:10:11this as you say expens expensive or is this cheap? Is this where buyers are are happy to transact out
2:10:16and win the transaction or sellers? And therefore, we constantly have the next play ready. The next
2:10:22play ready according. So if for example instead of us the buyers failing here and we actually
2:10:27won and we broke above. Mhm. We would then as you said there would probably be a squeeze. Yes. How
2:10:35would you let's say if that was to take place? Mhm. Where would you look to try and enter if
2:10:41because a squeeze let's say a squeeze takes place that' be quite aggressive right it will be quite
2:10:45aggressive it will be with a lot of big trades inside I will plot my profile search for the
2:10:52first low volume node jump in with a really tight stop loss and get the explosion okay got you and
2:10:57this way you can get really fast one two three one to five if you have five art for the day you are
2:11:03done what you need it's a beautiful trade and the good part is that if You take two stop loss. The
2:11:09stop loss is so small that you can afford to take three or four stop loss. Yeah. And you on average
2:11:16what do you look to risk? Does it depend on the day or the account that you're trading? Usually
2:11:21I I risk 0.25% per trade because I trade personal account. Yeah. And uh in the Robins cap I reach
2:11:28till 0.5% per trade. Uh sometimes when I get above 100% of return I get to 1%. Gotcha. But I will my
2:11:38role is always keeping draw down low because commission it's really heavy there. Yes. Like
2:11:44600 execution per quarter can cost you 10 20% of the account. So it's like you don't need only to
2:11:50make profit. You need also to repay commission. So it's just not not uh convenient to execute. What's
2:11:55happening here? We're seeing the buyers trying to trying to break this level. Yeah. They are getting
2:12:01aggressive to the eye. What does it mean that they are willing to pay higher price? Yeah. For this
2:12:05asset. Yeah. So is it too expensive to buy? No. Because if it was too expensive, aggressive buyers
2:12:12will not participate here. So it means that still my narrative is buyer. Even if I didn't break this
2:12:18level, I already know what to expect for the day. Already know. And we are getting ready for the
2:12:23squeeze. The squeeze will be present here. Look. There you have it. This is the squeeze. Now what
2:12:31can we expect? Really fast analysis. This is the bunch of aggressive trades that are populating
2:12:40this movement. Y I will not plot the profile because this is all low volume node. Yep. They
2:12:46didn't transact efficiently. So the first position that you can take here is protected by this area.
2:12:53Okay. So if this candle close and it's only five minutes uh it can either give us a follow through
2:13:01so break of the eye and we get a retracement because remember we never take the first drive.
2:13:05Okay. Because it can be a fake out. You're on the confirmation. Yeah. Yeah. See it can be
2:13:10a fake out. It can be absorbed and snapped back. I'm getting too excited. I'm like yeah execution.
2:13:17Let's get let's get in here. But this is why you're the professional and I'm the podcaster.
2:13:25But it is incredible honestly uh to see you know play by play uh we can have a position here if it
2:13:31breaks the low you can get the first position of risk here targeting a one to2 so we are risking 6
2:13:38600 to make potentially double 1,200 and if we want we can also trail our stop loss to the to
2:13:49the high and the high is a huge risk to reward if it achieves leaves it. But our rule now is to put
2:13:55our stop loss to risk zero as soon as possible. Of course. Yeah. This so this long executes if
2:14:03the high gets broken. Yeah. This execution can be on by stop like buy stop. Yeah. If it uh breaks
2:14:09the high you can be inside the position. Now this this makes sense because we are protected by all
2:14:14these big orders you know. So as soon as this week gets taken you are just inside and you are covered
2:14:20here. Why? Because look look what's happening here. If this okay we are inside in this position.
2:14:27We are risking $650. If these sellers are getting aggressive and we are getting anniated we want
2:14:34to be out as soon as possible because it means we are wrong. Yeah. At the same time if we see these
2:14:40sellers getting completely absorbed by buyers in continuing up doesn't fail the stop and we are if
2:14:47we go above would you say that it would uh would it cause a squeeze because especially because of
2:14:51the size of understood how it works. Yes. So if we break above now for example and we continue higher
2:14:57in terms of trailing your stop would you be then trailing it beneath? It's not so difficult. No,
2:15:03it's not. It is so interesting because as I was saying to you earlier like I think a lot
2:15:09of people have a huge misconception with they think order flow it's hard. Yeah. Just order
2:15:13their flow is reading an alphabet. You need to learn letters and then that's it. But it's
2:15:18really strange what's happening here because it's not common that you have a breakout and you don't
2:15:22test. They are leaving a huge low volume node. The only thing I'm afraid because consider that
2:15:27we are now in the position is that in the test of the low volume node they will spike out but
2:15:33we we will take multiple position in this case. Yeah. So they are pushing the eye. What does it
2:15:40mean if they are pushing the eye and make another drive? This big boy needs to close the position
2:15:44because he's losing. And if this boy needs to cover himself, the squeeze can get interesting.
2:15:55See, just analyzing balls, not price. These balls look just a game of balls.
2:16:01When they start overlapping, it kind of looks like ICT's enigma, you know,
2:16:04like this is how this is how it's really going on. Yeah. But now the algorithm is saying that
2:16:11we are going to get long. Mhm. It's not orderful. It sound good. It is incredible though. Honestly,
2:16:19you can only understand where is price because you watch this line. You see this? Exactly.
2:16:26Exactly. It's so interesting honestly. But I'd love to I do wonder, you know, what the audience
2:16:31are thinking at this stage. You know, what they would feel trading this live, especially when
2:16:35we were down at the low at the open when you said that we'll see a shakeout. I wonder how
2:16:40many people would probably be looking to either uh short, probably been stopped out already and
2:16:45trying to revenge trade or get back in or like what would that look like, you know, for for a lot
2:16:50of people cuz I can imagine down there a lot of people probably would have been shorting shorting
2:16:54shorting expecting, you know, a follow through down but then, you know, especially after the
2:16:59gap's been filled as well, right? Because a lot of people would assume be gap filled in London,
2:17:04we're going to then continue lower, right? Uh but as we can see but in what's good about what's
2:17:10what's happening like the sellers the sellers are getting completely destroyed then soon we have the
2:17:22incredible soon we have the we can put the stop loss at break even we have a long way to go still.
2:17:29So at this stage would you have scale uh moved the stop loss beneath the the red uh the red bubble
2:17:34there? There's only one reason I will not do it and they will be happy to take a stop loss if it
2:17:39snap back at me because there is low volume low volume node like you they can push a spike really
2:17:44fast and they get liquidated in a really good position. Got you. Yeah. Like this position it's
2:17:49only one contract can give you 1,000. Look how much it's pushing. Like that makes sense. Yeah.
2:17:56No, we got we enter here and we got one lazer green line. You cannot expect anything better as
2:18:03a trader because you are just psychologically it's way better than being included in this mess. No,
2:18:10very true. Yeah, very very true. It's time for us to put the risk to zero. So now So now even
2:18:19if it comes to low volume node, it's fine because you've taken zero and you have a chance to reenter
2:18:24that. Yeah. Now you can play this game in a lot of ways. You can scale in again. Uh you can put
2:18:34this stop loss to break even and use this amount of profit to open another position because you
2:18:38have another lock in here. What does it mean lock in? This seems like the master card logo but it's
2:18:43sellers getting aggressive. Yeah. And buyers getting more aggressive than that. Who is fall?
2:18:50You see they are willing. Now when I tell you what does it mean buy low sell high if they are
2:18:56willing to pay a higher price to push the price down. There is no discount. There is no premium.
2:19:03Yeah. Like it's it's just stupid the concept that they are trying to push to the audience
2:19:07because here the only thing the market is telling you is that buyers are willing to pay more to buy
2:19:13NASDAQ. That's it. Yeah. As simple as that. You don't need seven screen. You don't need a huge
2:19:18amount of tools. You are we are just watching the real nature of the market. Orders not candles.
2:19:27So if you were to add there, would it be a case where you want a close and then a revisit? Yes,
2:19:32in this case you will take profit because it's already like half. It's like 1 to 1.5 when it was
2:19:38here. So you can just close and use the profit to take another trade on the test. Gotcha. We
2:19:43are not doing this this model because this low volume node scares me. Yeah. And I'm really I
2:19:51don't want to say I'm sure because I hope it will go good but I know my my chicken I know
2:19:58my NASDAQ and usually at the session it's just give the first drive. Yeah. Pull back. Yeah. And
2:20:04create but we can just now we are risk that's the reason also I got aggressive with risk zero
2:20:09because we can take it another trades otherwise use the profit on the first one to take another
2:20:14one that will be even better. What is telling us the market now? Just analyzing raw data,
2:20:22the buyers at the top are not getting accepted. So it's getting expensive. Yeah. If it get expensive,
2:20:28we should start to see some sellers here. Yeah. And if we see sellers and they win the battle,
2:20:34we are [ __ ] up to the point that if these levels gets broken, we can also go to stop in
2:20:38profit of€1,000. Mhm. Not 1,000, like 800. and say if it goes bad we use this profit to make another
2:20:47trade. Gotcha. Yeah. But the major movement of the day we took it in the first 20 minutes. That's the
2:20:53major movement of the day. The break then you can play it longterm. Yeah. And if you play longterm
2:20:58you have 1 to 10 risk-to-reward but you get a lower win rate. Of course. Or you can just say
2:21:04give my cash session is done. Are you able in uh in futures as part of this are you able to like
2:21:10partial your trades? Of course. Yes. Yeah. Yes. Yes. So, is that something is that something you
2:21:14sometimes do? Let's say in this example, it's a good one to be fair. Uh would you for example,
2:21:19you had multiple contracts on and you're in this position. Would you say considering that
2:21:24I go heavy and I go with multiple contracts when I see this rejection, I would already
2:21:29take out half of the contracts because I'm risk free. Okay. Exactly. Yeah. I can take profit and
2:21:35I can continue to scale in if I want. Okay. I don't like when the market gets weak. So,
2:21:41I will take out here. But education wise I want the trade to get completed. Either we are stopped
2:21:46out at break even either we go to take profit. I don't want to create additional difficulty
2:21:53of trade management that this advance. Yeah. Because even then with trade management it's
2:21:58quite personal part of the like it's a big part of the but when it comes to say the high of previous
2:22:05day is that something then let's say you've taken half off would that be your next sort of target or
2:22:11if let's say price goes to you know one to three or four and then shows similar where we're getting
2:22:15a bit of weakness you want to know everything give me all the secrets so the point is you when I told
2:22:22you I will scale out it's exactly because when you see this the step is aggressive sellers. Yeah,
2:22:33you you coded the algorithm. Uh the next step is aggressive sellers. Now,
2:22:37if aggressive sellers gets recovered, yeah, this was funny. If aggressive sellers gets recovered,
2:22:44we should expect another explosion up the second squeeze. Yeah. Okay. So, let's go back to your
2:22:51question. Um like cuz bearing in mind, right, the each one of these is 40. You set it to 40
2:22:56contracts, right? 40. But these big balls, maybe it's 100. Exactly. That's what I was saying. Yeah.
2:23:00Yeah. Mhm. Uh these are big boys. Okay. So I would like these big boys to be squeezed or
2:23:07to get back to the low volume node. Yeah. So for example, we were at the high there in real time
2:23:14or or you know, if we weren't in this setting, you probably would have taken half off. Yes.
2:23:19Let's say price comes back to break even on that trade, no problem. But then you're going to look
2:23:23at the reaction from the low volume node. Is it again a confirmation based? Of course. Like again,
2:23:28I if this one goes to half profit and half break even, I would use half the profit that I made
2:23:34to wait for the trades there because I'm pretty sure that if we get back to the low volume node,
2:23:40we get aggressive buyers, we are going to run to the high. So you can just bear in mind where did
2:23:45this get to? It's got to about 800. You say €800? Yeah, like 800. But I'll fit 400. Exactly. But now
2:23:52it's easy for people at home to maybe think, oh, this is only one contract. Exactly. Yeah. That's
2:23:56what I was going to say. So like, you know, you make that 10 contracts for example. So you would
2:24:01have taken 4,000. 4,000 within a few minutes. That's the point. The more the account size,
2:24:05the more you feel confident to get continuous profit for the day. Yeah. And then if you want
2:24:11to scale in, you scale in with the profit. This is you anticipated what I wanted to say to you
2:24:15like how I did this performance in the world trading cup is building profit for the day,
2:24:20building profit for the day, building profit for the day and in directional days I risk for example
2:24:26in 10 trades the profit that I made for the day and you get a huge percentage of course but you
2:24:31are only risking profit of the day. Yeah. If the day gets close this profit is locked in it's
2:24:36equity. It's not more profit. You cannot risk it. So the next day reset reset. Yeah. Yeah. And if
2:24:41you think about what's the concept of this, when the model goes well, you take risk. Yeah. Because
2:24:47the model is respecting what you're saying. If the model goes back, ready for the squeeze,
2:24:51huh? Ready for the squeeze coming? Uh sellers aggressive here. No follow through. Yeah. So we
2:25:00need this eye. If this eye gets broken, we go here. Yeah. Done. Uh what was I saying?
2:25:07That you build your position with multiple scalps and uh this means that when the market
2:25:16condition is favorable to you, you make a lot of money. Yeah. When the market condition is bad,
2:25:21you take the first two or three stop loss and you are out. Done. Yeah. One trade the next day,
2:25:25everything covered. I have a maximum stop- loss for the day like in percentage term that is 2%.
2:25:32So when I say to people this day I took eight stop loss I only lost 2%. Exactly. That's what they
2:25:38don't understand. They see the time maybe they risking 3% per stop loss. Of course it's a lot
2:25:43but that's not how you deal with risk management. And what's important to highlight as well as we
2:25:48were talking about contracts and you know if you had more contracts this would have been X
2:25:51amount. What's important to highlight with that is that that's not where you start right. You start
2:25:56with the low. Yeah. Micro. you build over time and and I think people hear over time and they
2:26:01automatically assume that's a long time but it's all perception right so like if it takes you two
2:26:06to three to four years to really start to build a position size up and your confidence and your
2:26:11skill isn't that worth being able to make four five $10,000 in a day right in a day yes but then
2:26:19don't hear that line and think oh yeah that's you that's incredible I can do that ASAP and whatever
2:26:25it's the three to five years of dedication and and hard work and really intricate detail that
2:26:31then allows you to have that skill set. But it's like a lot of people aren't willing to sacrifice
2:26:35and understand that. And as I said, this is a this is a a strategy and a playbook that is truly
2:26:41for trade actual traders, you know, not for people who like the idea of trading, if that makes sense.
2:26:47Yes, I totally agree with you. And also like I know it's easier to believe in the fairy tales of
2:26:56the Metatrader bot that makes money for you when you sleep or just the signal service that is able
2:27:03to put money to put food on your table when you don't do anything. But that's not the reality. and
2:27:09uh message to the audience. Trust only people that give you some sort of verification or even better
2:27:18live analysis. If you can live trading, if you can track record and understand if they are doing what
2:27:26they are saying they do. Yeah. Because there is a big difference between people that make money with
2:27:31the market and people that make money pretending to trade the market like with service connected to
2:27:38them. In this case, you see they revisit again the big traits. Yeah. No follow through. Going
2:27:42back to the now I remove a little bit because I cannot really see price. So let's remove it.
2:27:51So the message I want to give to them they he didn't take out us on break even on the second
2:27:56position but we took out position here half of the position. You see how much this level it's
2:28:02important and this level the market is using to pivo. This is not a case. This is when buyers
2:28:08decided that it was too expensive to continue buying. So this is the cap of the auction. The
2:28:14Mustang got too much expensive for us. Yeah. If they are changing their narrative when we will
2:28:20see another candle, we can continue to trail our stop in profit. Like it's not ringing the wheel.
2:28:28I will keep this visual for now without big orders because otherwise I cannot see where is our break
2:28:34even. And here is our premium setup. If we are willing to go back and cover the low volume node,
2:28:42we will use half of the profit that we made to um strike up even with one contract. This can be a
2:28:49$4,000 trades if we wait for the eye. Yeah. But we need to stay here till evening because I think
2:28:55the volatility I can see it's it was big in the beginning but now it's drying up. So let's see.
2:29:02Let's see at least if we reach the target without taking out the other position at break even. That
2:29:10other trade that we discussed in terms of outside of your playbook and some traders might have it in
2:29:15their playbook. Um and you said though with that trade it makes sense to target the you
2:29:21know the the ceiling that we had at the time. Yes. Exactly. Because you don't know if it's
2:29:25going to break higher. Would it be if someone was taking that setup or would would that be a
2:29:31setup you would take if you had already traded in the day made some profits or even then it
2:29:35would be because it's it's not a bad setup. It's a good setup. Just let's would you take the full
2:29:40setup out here or would it if in that case you had multiple contracts? Is that another one where you
2:29:45would say half off leave? I do something really smart. Okay. I take the setup out here but I'm
2:29:51ready to open it back with the profit I made if it breaks. Okay. Okay. So, you're able to
2:29:55I don't take the risk of indecision here. Okay. Yeah. I I bring the money in my account then I'm
2:30:02willing to put the money on the table. Yeah. If I have a confirmation like it makes more sense.
2:30:07I tried what you say to keep it. Yeah. But seven times it snap back. You get a break and you say
2:30:12[ __ ] I should I I can include it start the day at 3 hour and I let the market take out everything
2:30:17is preparing the squeeze. Yeah. So all those red orders here are right now under water. We take
2:30:24that high. We should squeeze up. You're getting good. Teacher being prepared. We have a great
2:30:31What can we expect? Buyer said the eye. Yeah. The auction got expensive now. More expensive.
2:30:38They are willing to pay higher price for it. So absorbed. Absorbed. You can put in stop in profit
2:30:45if you want. I will not do it because the test here it's really probable to happen. Yeah. But
2:30:52we took a really exponential move. You see almost zero draw down like from when we entered there
2:30:58was zero to non draw down like we enter in this candle it continue again seller trying to step in
2:31:05in a parabolic move in this particular here. Now is this now the level we would hope would hold?
2:31:11Yes. Yeah. This if you want to be conservative the down there. Yeah. down there because this is the
2:31:17protection level of the sellers. Why we saw this exponential move even someone will think we are
2:31:23expensive. Why? Because these sellers are closing position and this creating even more momentum.
2:31:37Now again same situation sellers aggressive buyers that needs to
2:31:42decide if they want to protect this level and continue to be aggressive here. Mhm.
2:31:49Now we are reaching 22 round number. Yes, this is a really important number. Price
2:31:57will accumulate or distribute around this level. So you can also decide to if it breaks this high
2:32:06with aggression, you can also take the second position with a really tight stop loss. So if
2:32:14it goes bad, you take another $600 or $700, but at least you are protecting yourself. So if we
2:32:19tap this eye, the stop loss goes here. Yeah. So our stop loss our stop loss goes here. So
2:32:24we make more than the first position, but still we are protected. Yes. And then someone can say
2:32:29what if it goes if it test and then goes up. Okay, we are protected on the second one. It's another 7
2:32:34$700 here because if this eye doesn't hold and the market collapse, I don't want to give back
2:32:41to the market all the profit that we made. We made an amazing zero draw down entry here
2:32:45because this is in consideration that that's our target. So then the it's a negative risk-to-reward
2:32:50to allow us to go back. Exactly. Exactly. I'm not willing to give to the market all
2:32:54this money back. Yeah. and see our sellers are starting to participate on the top, I don't like
2:33:00it. I expect a a squeeze that will bring us to target. But if is this level gets broken,
2:33:06I I I have too much profit to give back. It's not worth for me. Mhm. So our stop
2:33:13loss now it's I will show you this low. Okay. And I can see that it's not easy to break this
2:33:20high because you have to consider that it's around number. Buyers are getting aggressive
2:33:24again buying the top. If this auction fail, I think we will revisit the low low volume node
2:33:33all the way. Yeah. Yeah. All the way. So we can have another position with made 400 on the first,
2:33:38700 or 600 on the second. We are floating on out. Yeah. Totally out on the position.
2:33:47Let's remove everything.
2:33:54It's important to highlight as well. So at this point maybe roughly $1,000 $1,100
2:33:59um in ter in total profits. Yeah. And bear in mind because I think social media causes a a
2:34:05slight problem in the trading space where they think $1,100 is not a lot of money. Bear in mind
2:34:09that's,100 in roughly about half an hour with one contract. With one contract. But not even just
2:34:15that though. Even $1,100 in a single day Mhm. is incredible because if you're trading for a month
2:34:21and on average you whatever 50% win rate whatever it may be you're still coming out with a very good
2:34:28yearly salary in a month almost. Yes. Right. And that's incredible and that's like position number
2:34:34one. That's like as you scale in your trading journey that's how it should look. Now, I know
2:34:39it's so easy with social media to assume you need to be making a $100,000 a month every single month
2:34:45or multiple hundreds of thousands. And that is possible, right? And there are traders doing that,
2:34:50but they didn't start that way. They go through the process step by step. Look at the precision
2:34:55of the reversal point. We saved all this money that the market want to give to get back like from
2:35:02here. This is I want to show you something and I will make another prediction that is not a trade.
2:35:08Okay. But is this where the market will reverse this delta from here to here it's not worth the
2:35:18trade. Yeah. Because here it's full of big trades not having a follow-up. I expect that from here we
2:35:25get all the way back from here. Mhm. And we can use this two $500 trades to make another one to
2:35:32three. Now let's say if we take another two trades for the day. One to three. $500 series, it's
2:35:38another $3,000 only using the profit. Worst case scenario, we close break even of the day. Yeah.
2:35:44Like the reason traders are unprofitable is they try to get the home run. So maybe they get this
2:35:51breakout and they all till the top without taking partial without you can never go broke by taking
2:35:58partial like you you are sitting on profit for the day. And in this case as well like there's nothing
2:36:04in between that you would look for. You would only wait for price to come back to that higher
2:36:09probable area. Let's see. I will exactly tell you where I expect a reaction considering that still
2:36:14the momentum by I didn't saw the big picture, but the momentum buy is amazing. But let's get the the
2:36:22whole picture. It's incredible though because it shows you when you're dissecting price when you're
2:36:26logged in. I I lose the conception of time really. I I was thinking that it was 20 minutes that we
2:36:32were there. It did feel to be fair to you. It did feel like that. Yeah, this is a huge volume. Huge
2:36:39low volume note. Yeah, you can see like it's a squeeze. It's very So I will not engage in
2:36:44other trades here. Just the first trade that I would watch is here. But watching the momentum,
2:36:51I don't think uh we will go back. So you can just continue to adapt to the position using the
2:36:57profit. If you want, we can continue to see it. Can one minute and see what big boys are doing.
2:37:07So my take and this is against the probability is that this is a wall. Okay. Okay. So this is
2:37:14the trade that you never need to do. But if I need to consider a trade, this is what I'm
2:37:21afraid about. Okay. Of that happen. This is the reason I took out the buy position
2:37:25before. Gotcha. Round number. Seller getting aggressive. Buyers not having a follow through.
2:37:31Was there any of this slowdown as well? Was that take that into account as well? Yes,
2:37:37because this one it's compression again. Okay. The market getting back inside compression. Usually
2:37:43it's a visit of the low. Okay. Uh now let's see what cumulative volume delta is saying.
2:37:49This is an important information that we are putting in for the first time here. Mhm. And
2:37:53this the cumulative volume pressure of the market visualizing candlestick. You see that it's short
2:38:02down here. Yeah, this is an information because the squids was supported but then we started to
2:38:12distribute. Yes. Again all this by movement no follow up. Yeah. Divergence. M this divergence
2:38:22is significant because it means that there is something big here. So two scenario either it
2:38:29breaks and we take another continuation trades that is amazing for us but I know this asset
2:38:36and I think that we are going to revisit from here either this low or this low volume then
2:38:42we take even better trades. Yeah, this is a pattern that I have seen a lot of times. Four
2:38:49consecutive weeks every week taking out the high but not creating new value. If there is a big buy
2:38:56trades here a collapses is soon. Of course, it's not a trade because we are counter trend on it.
2:39:09Let's see if the doesn't get old. I'll tell you that it doesn't go.
2:39:16Yes. Yes. It's this one. Big trades, no follow through. Yeah. Sellers building
2:39:21the narrative. Cumulative volume delta going down. Here we go.
2:39:27Would you say uh do you only trade NASDAQ and Q? NASDAQ because uh it's a lot of information
2:39:33to deal with. Yeah. I tried one time with NASDAQ and crude oil, but I was a therapist. I need DP
2:39:40psychologist at the end of the uh but would you say that also though even though yes it's a lot of
2:39:46information by really tuning into one asset such as NQ yeah it's the the cheat code like understand
2:39:53like you just said I've seen I know this pair this was feeling like this one is the intuition part
2:39:58it's a counter trend trades I will never take it but we took from the bottom to the eye and
2:40:03we exit at the top we saved the delta profit that was here that if I was using my ego I will say No,
2:40:09we go to target. Yeah, because this is my target. But this capacity to adapt to market behavior
2:40:17here in this amount of error, we took an explosion that is five times more. It's not easy to time the
2:40:23market in this way. If these big trades protect and break the high, we have another buy. Mhm. So,
2:40:30we can again jump on the train. And the problem with if you're trying to say long and then short
2:40:36is that the real bias is still long. But let's say if this comes up now and and you get break even
2:40:42or stop loss. A lot of people's psychology is that they will still focus on the short
2:40:48cuz that's the one they lost. Yes. Instead of realizing where the original bias is by taking
2:40:53this lowquality setup that yeah okay might be might pull through might be able to make some
2:40:57good profit from whatever it may be. The problem is our mindsets get fixed on that bias then and
2:41:04that happens to a lot of people. I think a lot of people let's say coming into this session as
2:41:07a good example coming into this session they did the same market analysis you did long bias price
2:41:12shot down they switch to short they take a loss. Yes. But then the problem is they don't switch
2:41:17back or recognize their mistake and they stick on the loss and they stick on the short and they
2:41:22keep trying to short all the way up. They marry their trades and then they end up in, you know,
2:41:25blowing their challenge, blowing their account, taking a heavier loss than they're meant to when
2:41:30in reality they had to, you know, you've done your, it's like you said earlier,
2:41:34right? When you're at war, you don't make the changes, right? You don't make change when you
2:41:38are fighting. Yeah. Like the changes are made in the tent with generals and planning the war
2:41:45up front. Mhm. In this case, it's building a goodby setup. Yeah. Huge amount of buy here.
2:41:55Watching the narrative here. I don't think we will retrace back. Look where it tapped
2:41:59in. Low volume node. Now what we need to be back in the trade? We need a breakout of this
2:42:05high. Yeah. So the next set uh buy stop. Uh no, I want a full candle close. Okay. On this
2:42:13one. So risky. What's the reason for that one? Because we're already quite high. Because the
2:42:18bias is clear. The bias is clear. The target is still not taken. The momentum is big and
2:42:23the interesting is big. Like this candle, this um uh big order is bigger than all this area. Okay,
2:42:32these traders are getting squeezed. So if we break this high, we test this area. I will target for
2:42:41another $12,000 trade getting to 22062. This will be the trade. But you see how much fast
2:42:55you need to put your ego aside and say this was the narrative that I was building. It didn't break
2:43:01the high but it broke the low. Yeah. So it can be still a retracement to the low volume node.
2:43:08What I need the trade is valid as soon as we close with a one minute candle
2:43:14full body candle above this where we were failing. Yeah, where we were failing. Even
2:43:22better if in the move up there is a big trade cell that gets destroyed like here.
2:43:31Let's see.
2:43:35And how long have you been trading this way? This way it's around four years that I use order flow
2:43:43more than price action. Before I started before four years I started to get only the trigger
2:43:48from order flow. Now I'm full order flow like I use price action only as a proxy and a result of
2:43:55volume. Yeah. like I you you see I always compare the volume with the result that is providing and
2:44:02um but the learning curve is still like 20% of what you can understand with this. So I still am
2:44:08one 20% of the real power of order flow I mastered like I still need to to get better sometimes
2:44:15because I think there especially nowadays with machine learning and neural network you can put
2:44:20this kind of data in an algorithm that really helps you to remove all the noise. Mhm. And um
2:44:27I think in the area of artificial intelligence, understanding deeply this data and using AI to
2:44:35just get a better um risk management or position management, journaling all your trades. This is an
2:44:42idea for Omar. Like using artificial intelligence for the journal is something that can really step
2:44:48up the game a lot. And it's incredible how much when you have 2,500 sample also a small change
2:44:55in risk management change the curve of the equity line. Yeah. Like you can go parabolic or you can
2:45:00go stable or you can go like this small change. So the strategy it's 30%. Let's say 33%. 33% is
2:45:10the mindset the trader that is behind and that it can stay calm when it's not his setup or playbook
2:45:17presenting. Yeah. The other trend 33% is the risk management part. Definitely it's a huge
2:45:22part. Definitely. Yeah, that's something that um I did a round table with uh you know verified seven
2:45:29and eight figure traders Zuma was there as well and that was one thing that seemed to stand out
2:45:33is that once traders had gotten the strategy down right had their playbook and then they have the
2:45:39psychology at this point they have consistency a huge portion of that change in P&L is tweaking the
2:45:46risk management by really mastering and focusing on that totally. So what are you seeing here then?
2:45:53So at this stage obviously we've seen this big buyer. We are we are still in a uh buy narrative.
2:45:58Is that that setup that you have mapped out there still valid? The the sell the the buy sorry the
2:46:04buy is still valid. Yes. Totally. And uh it's still not activated because they need to break
2:46:08the Exactly. Yeah. Yeah. But is is valid. The nar the narrative is valid. I was interested in this
2:46:15buy. If it gets bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro
2:46:17broken and tested we will keep this narrative. Yeah but still we are long. We broke the high
2:46:23of the consolidation. So we are in the expansion phase that we explained before at this stage where
2:46:29we are now. Anyway, I know obviously it's still valid anyway. But if I say you saw some sellers
2:46:33try to step in and they get absorbed just add to the confidence. If I see sellers getting absorbed
2:46:39here, it would be amazing because it says look we are also heavy on limit order not only aggressive
2:46:47orders because these are execution but if you see a sell aggressive not getting a follow through it
2:46:53means that the buyers are also protecting from limit order absorbing. So you have two forces
2:46:58pushing in the same direction and it's a really good trades. Yeah, I'm really optimistic on this
2:47:04one. like it's a long way to go up here, but still we are in the dealing range that we want to trade
2:47:10because we still didn't took out the previous day previous daily high. Yeah. And would you say as
2:47:15well this compression we're seeing at this high, if we were to break higher, it would essentially
2:47:20be another squeeze. So because of that range that we've kind of been building here at the high,
2:47:24if we were to break higher, it would be all the these sellers and these sellers here Mhm.
2:47:30would have to close and there's I think there's one in there as well. Yeah. Yeah,
2:47:32but then they would essentially have to close out which would then cause us to push towards target
2:47:36more. They will uh get an exponential move of the price here. I'm pretty sure about it. But we need
2:47:43to give them a reason to close the trades because still now they can be right. Yes. Yes. They are
2:47:49going to be proven wrong if we first break this level. But if we approach this ice before so I
2:47:57don't want to lose the trade because if I wait here to step in Yeah. I risk that it's another
2:48:02explosion like this and we are unfilled. Yes. So I will just take a level because when we break
2:48:08this one the probability that we will continue high. So our margin of error is small because we
2:48:13are only losing $595. This is half of the profit that we already made. Yes. But if it goes good
2:48:19we add another 1,200. So we are sitting on the day for $2,200. Just to confirm for everyone,
2:48:26we're not in this trade yet. Yeah. No, no, no. Uh when you see this level here, it's long one
2:48:31contract and price takes that low. Mhm. Does that you invalid invalid because it means that
2:48:37the seller these buyers are not aggressive enough to push it up. But can I show you something I need
2:48:44to remove because the narrative that I have is really clear on the long and I will explain you
2:48:50why. Let's consider all this compression here. Now let's take into account all this area. Okay.
2:48:58Yeah, we are not willing to break the right the value area low. Mhm. But we are willing to sit
2:49:11above the P. Yeah. If we are sitting above the P consistently, it means that it's an accumulation.
2:49:18Yeah. Not always, but statistically wise, it's more probable that we will approach this high.
2:49:26Yeah. And if we approach this eye and we spike up, these traders are forced to close their position.
2:49:32If they are forced to close the position, we experience another catalyst in price that gives
2:49:37us the possibility to to be break even in one minute because we enter here, it approach here,
2:49:43it explode here, break even. So it's only temporary the $600 loss. Now I want to I want to
2:49:53see if approaching here we have aggressive sellers not willing to um not willing to have a reaction
2:50:02like pushing but limit order are absorbing them. Let's see how is it going. I want to activate also
2:50:10because it's really useful the commumulative volume delta in this situation. So what the
2:50:16cumulative volume delta is saying now is that they are building momentum down. So we can expect what
2:50:23is called a whipsaw. Okay. Take off the law. But as you can see also here consolidation like also
2:50:32here like replicating the same scenario. Mhm. In this situation here. Let's see. They say
2:50:40that scalpers don't have patience but a lot. It's not it's not like swing but it's a lot of patient
2:50:45to wait for the correct setup. Exactly. Yeah, that's true. So I will only use these two signal
2:50:55the value area low and I will use the same color blue and the value area high that is this one.
2:51:08Okay, then I will cancel this one. There's a little bit of delay for connection I think. And
2:51:17um what we will do is we will observe when we approach this level,
2:51:23if we approach this level, the behavior of the big trades
2:51:30still not participating. Mhm. Still bias control. Does this just mean uh No, no, it's live. It's
2:51:36live. just uh I think let me reload but I think it works properly. Let's see if there is any change.
2:51:47No, it works. Let me check with the phone if there is any discrepancy in price but I think no.
2:52:08Oh no, it disappeared. It was only temporary. There was delay 5 seconds,
2:52:1410 seconds the red the mark, but we are approaching the high still buyers controlling
2:52:23like if we want to get the horizontal level is exactly the one protecting this order. So my
2:52:29stop loss is a little bit too generous. should be like this to be honest. Mhm. Exactly $500.
2:52:42This uh price consolidating the way it is right now. Is that would you say that's a
2:52:45positive thing, negative thing or just neutral? It's positive thing because it's most probably
2:52:49a reaccumulation before because the market cannot look here. It's skyrocket up. Yep.
2:52:56Without retracing. This is not um efficient market exchange. This is inefficiency price
2:53:02action. So this one is necessary if we want to reach the top of the day. This one is the
2:53:08market cannot be parabolic. Yeah. Because there needs to be interaction like sellers
2:53:12trying to step in. And now if we analyze sellers trapped, buyers aggressive, big node on the top,
2:53:21possible squeeze. If we break this one, this one are forced to close. Mhm. It's a good setup.
2:53:28This one is a good setup. And the good part is that we are using profit of the profit. This is
2:53:33psychologically also really convenient for us. So you have a 2% limit on loss loss for the day. On
2:53:42the worst case scenario, I lose 2%. That is eight trades. Yeah. But doesn't happen often can happen
2:53:50one time every two months. Yeah. So in in in this case though like if you were trading at
2:53:56your own desk right now and um so first trade's a a win are you taking trades like this trade
2:54:02another trade for example would you be taking any of those other trades that we discussed
2:54:07uh as well or trying them or is I will take the exact same trade if it was on desk the
2:54:12only difference is that I'm with a trackp now and I have a mouse that have shortcut so I can
2:54:18just execute faster and also put at break even with one shortcut like the execution it's really
2:54:25important like with a laptop it's not the best to do scalping but uh yes these are two valid
2:54:31setup the setup that we took before is exactly what I would execute in the water in cup if I
2:54:36was still participating in it we are approaching the high and um exactly at the level I told you
2:54:44so now participating we are waiting for full candle because it can be a fake out on the
2:54:50full candle we are in it's one minute chart so it's really easy see if you we were in before
2:54:56we would risk the whip saw now what happens if the full candle arrives here we cannot have this
2:55:04big stop loss so we will just cover ourself below the big trade okay got so let's see how it goes
2:55:14we are still not in.
2:55:21So I need to adapt my stop loss.
2:55:28If the candle close even here, we are still risking even less 355. But I need
2:55:34to see that it close above this box. Yes. If it close inside, I'm not engaging. If it
2:55:42closes inside then closes above the box, you're in or it close below. Yeah. So,
2:55:46not in. Okay. But if it now closed above, you see why not? Yeah. If it now closed above,
2:55:52I still can consider the trade. But, uh, I need to cover myself below this bias. Yes.
2:56:03This is potential area accumulation. So, I can have a really small stop loss. It's this
2:56:09trade execute. I will participate here. It's $275 loss. Okay. 20% of what we got for the day. So,
2:56:18are you doing that because that is, you know, if we go below that low,
2:56:22the setup is essentially fine anymore. Okay. So, it doesn't matter about, oh,
2:56:26you have $600 worth of risk you could use. So, give it wider. I'm showing one contract,
2:56:31but if the risk is only $280, I can scaling contract like I can bring the risk to $500. So,
2:56:38two contracts in this case. I got you. Yes. Okay. I understand. Yeah. Let's see. Okay, we are
2:56:43in here. Close of the candle. We are in. We are risking $260 to make potential 1,100. It's one to
2:56:53five. One to five and a halfish. Yeah. Five and a half. The good part is that when we approach this,
2:56:59if we break, we are risk free immediately. If we break that, yeah, we break this one,
2:57:06you see the catalyst. Okay. We go risk free. Got you. and like some seconds and we go risk free.
2:57:15So now you'd be risk free. Yes, the risk is free. It's
2:57:23it can be below this aggression candle but it's still risky. I will still not go risk-f free
2:57:29because I think we will test this level. I will take the risk to take a loss on this one. Yeah,
2:57:38you can go risk free when you see candle accepting the high. Yeah,
2:57:43this one is still not accepting the high and the risk is that it test
2:57:47then skyrocket up and you are out of your position and it moves too fast.
2:57:55No, it's again test. You see what I saved does the upper top of the range. Yeah. Yeah,
2:58:02I saved the fact that I will get liquidated if I go too fast risk free. And you can say
2:58:06you can re-enter. Yes, but what if now it explode? It's too fast. Yes,
2:58:10it's too fast. Now, when we get a full money candle up, Yeah. we can get risk-free. Okay.
2:58:22You're getting anxious. Yeah, we're dry. We're getting We're
2:58:25getting good by the end of this be a whole different trader. That's it.
2:58:33But be honest, is it more clear than price action or Yeah, it is. It is. Uh it's way more
2:58:39clear. Like I said, the one of the most clearest orderflow breakdowns we've done so far, for sure.
2:58:44And to be able to do it live as well and see it live is incredible. Um, and I'll tell you that,
2:58:49you know, the platform's been incredible as well because, as I said, previous ones I've seen,
2:58:54it's it feels very overwhelming as someone who doesn't use orderflow, while this one you can
2:58:59incorporate a lot of this information quite cleanly, especially like you had the volume
2:59:03profile with the delta, and then you have uh, you know, the orders being shown as well, the large
2:59:08orders being shown, and it all feels quite clean. And the the beauty is you can just click a button,
2:59:12hide them off, put them back on. Yeah. So you see it's not it's a fail this is a failed deduction
2:59:19like every time it approach the high and get back our probability that we will get a stop loss gets
2:59:24higher. Okay. Okay. So if we approach again and it gives me the ability to put my stop loss to break
2:59:30even here I will do because the setup is getting the more time the the weaker the weaker the weaker
2:59:36a good setup create an explosion here. Okay. So yes, there are these big orders protecting,
2:59:42but the probability that it will just spike out and liquidate me is getting higher and higher.
2:59:50And that's exactly what happened. So how much we lost on this one? $255.
2:59:58So the ability to be able to spot this here saves you to put a stop loss like the beginning
3:00:04we wanted to do here down here. Yeah. No, it's a half the risk. Let's adopt the the
3:00:09narrative. We are in profit of 750 for the day because we lost two $250 on this one. What can
3:00:17we do? If this big order gets again absorbed, we can engaged. But we need to see again aggression
3:00:25of the market participants. We can take a final position of other $500 to target for
3:00:33either the eye of the day either one to two one to three riskto-reward. What happened here? Why
3:00:40we have this movement? Aggressive buyers no follow through. Mhm. Getting back in sellers locking the
3:00:47movement. Now either we go here either the buyers take control. From what I'm seeing, we go here.
3:00:54Why aggressive buyers? No followup. Yep. Like if you want this can be a short but it's against the
3:01:03the bias. The bias. So we will not experience it and we will not try it. So we are waiting that
3:01:08the market gives us a new long position. Mhm. That of course is not providing at the moment.
3:01:21So would you need to uh see price close back above any certain level
3:01:25before looking to X? Yes, I will show you also which level. Now
3:01:31the consolidation era is still the same. Okay, let's remove for a second the big trades
3:01:40and let's go on what really matters. Did it break the value area low? No. Did it break the value
3:01:46area high? Yes. Okay. First information. Now sellers are getting really aggressive
3:01:52here. What does it mean? Like before before skyrocketing the market up, it took the low.
3:02:01Okay. So either this candle is full of aggressive sellers. There is a big ball here. Either we go
3:02:10back here and I see market activity participant buy and I engage. Either we use the trend
3:02:17following setup only when it closed the candle here. You remember break testing here like we
3:02:22did here. This explosion was taken thanks to this. Okay. So we took a stop loss here. We don't want
3:02:29to engage in the noise now. Yeah. Just want to be patient about it. Let's see what cuz otherwise
3:02:36let's say you know we get involved now. we could easily continue lower or even if we even if we
3:02:42close above this uh the top of the range there could still go lower while if we break above then
3:02:49we could have a high prob low probability that you will go lower and also consider that if it
3:02:54breaks higher you have a really clear level where to cover yourself. So you either you are right,
3:02:59either you are wrong really really fast here you can try along here get stopped out try again here
3:03:05get stopped out here if it breaks and it comes back is not valid anymore. Yeah you cannot get
3:03:11stopped out for no reason. So this could you going back to your analogy as well about you know during
3:03:18the battle this is essentially like during the battle here where we entered the trade that we
3:03:22just got stopped out on was when we had exited the battle. Mhm. Then it ended up being a loss. That's
3:03:27fine. Yes. It's part of trading, but now we're in the battle again. So, we're not looking to make
3:03:31a decision now. No, we want to come away from it. Exactly. But it's planned ahead of time. Yes. Now,
3:03:38at the moment, sellers are willing this battle. If sellers are willing to win this battle,
3:03:45this one needs to close. If this one needs to close, then we'll squeeze down. Uh we will do
3:03:50the opposite. We'll squeeze down. See aggressive sellers here jumping back liquidating all these
3:03:56ones and from here we can get the big buy movement of the day. Yeah, let's see how it behaves. Still
3:04:05didn't took the low. The squeeze happens when you took the low here and they have one, two, three,
3:04:10four, five low to revisit. Let's see how they will behave. Would you say usually What time are we
3:04:19into the open? We're couple hours in. Yes. Couple hours in the open. At this stage normally is there
3:04:25more volatility would you say or is this not like it's you see compression day first movement we
3:04:31made profit. Yeah. Then we lost in compression. As I told you the model don't work properly when
3:04:36there is compression. Mhm. Why we are still in profit if we took one take profit and one loss
3:04:42for only one reason our risk management. Yeah. We took profit when is necessary. We are wrong. When
3:04:47we are wrong we are wrong immediately. You see the squeeze like took the first low accelerated to the
3:04:52second. If accelerate to the second, it accelerate to the third. Big liquidation, fill the low volume
3:04:58node. Market makers don't like when the exchange is not um transaction properly. They don't like
3:05:05to void here. Okay. So you can see them from the low volume uh node and usually they get filled.
3:05:14So this cell if we were ignoring all of this this cell is saying sellers are getting aggressive but
3:05:20they are not having a follow through. Yeah. But in this situation we are also having a fail auction.
3:05:25If here we have a breakout of the candle and we get back here this could be a trade. Yeah. Is
3:05:30not the situation because also the buyers are not willing. So we are in the situation if you
3:05:34remember of the London session that we saw not clear direction not clear breakout long-term
3:05:40bias is clear is long but not a good setup to to take. Yeah let's remove the big trades here.
3:05:54Let's watch what's happen. So they took the first two loss, they get back inside in the
3:06:00sellers are still aggressive here. We didn't reach the value area low and we failed the
3:06:07auction here. Now let's clean everything. If we clean everything, we see something really clear
3:06:19this failed option. But at the same time, and I need to go on five minutes to show you this,
3:06:30the bias is clear. But look at this this situation.
3:06:36They didn't even revisit from the first trade that we took the balance area.
3:06:43So what can we do now? We can use the full impulse
3:06:54to time
3:06:59the delta and what we see we go deep inside
3:07:07the by delta that is more relevant is concentrated here in this three point
3:07:14one two and three these are the biggest one even if it's a void and this coherent with
3:07:22the test of this now if we get back here we have aggressive buyers we have sellers
3:07:27that are in deep loss yeah that can close the position and skyrocket up so from this
3:07:32situation I expect that shortterm the bias is still long we can accelerate and this exactly
3:07:38what we are doing so now it's time to take some of those previous lows that you mentioned we
3:07:44are going to take them. It's not worthy to take a long here against the momentum. Yeah,
3:07:57the narrative is really clear. The squeeze is happening. They took the first three low. They
3:08:03are going to target this other one. When they do it, they rebalance the low volume
3:08:07node. When they rebalance the low volume node, we have our opportunity to take a
3:08:12$500 trade. Yeah. To 2,000 profit, 3,000 profit for the day. And we are done. Let's
3:08:24see. Now we can put now that it's moving. You see really aggressive accelerating to our accepted.
3:08:38Now I will never dream about putting the buy here without seeing some absorption
3:08:45or some aggressive buyers stepping in. Yeah. Like I will before wait this one
3:08:51is a continuation model like sellers aggressive buyers trying you want
3:08:56them to fail. You want them to like it's accelerating still pushing low.
3:09:04when it's uh yellow it's irrelevant like it's not relevant volume okay so it's below the threshold
3:09:12okay then uh you can point it out I think we are going to yes we are going to push it out till
3:09:20this Mhm. If these traders close the position, skyrocket up, we are experience the first time
3:09:28that we are seeing this now. Yeah. What risks can can we take here? If let me show you this
3:09:35is the candle that incorporated all this sell volume inside. If they manage to break the high
3:09:41of this candle, okay, and get back in, not even if I calculated on purpose, $500 risk,
3:09:53we can shoot up
3:09:57to $2,000 trade. It's a one to four riskto-reward.
3:10:02We will see later if it is still what we need to have to activate this setup break out with
3:10:09full body candle of this high. Okay. So you need to close. I need to close. Yes. So if
3:10:15the market goes down great aggressive cell I recalibrate my stop loss. Okay.
3:10:24Let's see what it does.
3:10:30Still I expect a whipso down. Why the buyers follow through is garbage. Yes. Yeah. Yeah.
3:10:39Um the sellers Yes. The sellers can push out up closing this position but the reaction of
3:10:44the buyers is not so good. If we start to go above here the sellers will be forced to
3:10:50close. This can be a catalyst for up. But I would like to see that we reach this global
3:10:55node. This is really interesting. Let's see if we manage to get it. Just so you know,
3:11:03you hold the record for the longest char episode. Really? That's right. Probably approaching four
3:11:09or five hours, I think, by now. Really? It's a course. It's not a Yeah, exactly. Exactly.
3:11:16We told the people free education, you know, that you've never seen before. And, you know,
3:11:20we like to deliver and you've helped us to do that. Like I said, I'm excited to see the
3:11:24feedback, the comments from everyone. Interesting. Interesting. Ultra aggressive sellers getting
3:11:31absorbed close to the low volume node. So this trade is not valid. Okay, we are canceling it.
3:11:44Now this low volume node is created by this candle. Mhm. And they try to create a new low
3:11:50but it failed to do it. So we expect that if we approach again this low we have the
3:11:56final drive when the bubbles present themselves on the chart is that when
3:12:01the execution has taken yes okay exactly so you expect so especially for that size
3:12:07you would expect price when it's happened to to instantly move really so the fact
3:12:11it doesn't is where we're saying absorption yes exactly because if we look back here for
3:12:17example those buys came in we moved Yes. Yeah. Same here. The sells came in, we didn't move,
3:12:24but the buys came in. We Yes. They they are facilitated in moving the the market. We are
3:12:31What about now? What is your We are getting ready for I need only the lock in of uh uh green. Here
3:12:41we are approaching the level. So, I'm waiting. You still need that closer.
3:12:46Yes. This is exactly $500. Let's put for now at 1,000. Let's see the close.
3:12:56The close is there. Not yet. It's a one minute candle. You needed to close above. Yeah,
3:13:04it can close also below this one. If it close the important is that it close below this,
3:13:10above this and above this. So, still not doing it. You see it's rejecting. Okay. This one is
3:13:16not okay. Still not in the trade. Gotcha. Thanks God. Still not in the trade because as soon as
3:13:24the sellers are not are still protecting the position, you will see the retracement. How
3:13:30often do you see like early buyers early sellers as in traps essentially or like okay getting in
3:13:36buyers early here for example. Mhm. But then we go to that low volume. Yeah. A lot of times
3:13:40does that happen a lot? Yeah. Yes. That's why that confirmation is so important. Yeah. Yeah,
3:13:44it's like a semaphore like if it's red and you are trying to pass two times out of 10
3:13:51it's working but the other time you are crashing another car like now it's again
3:13:56presenting the setups but you needed to close I need to close but I think we are almost there
3:14:06let's see yes closed okay we are in
3:14:13just tested So, we got filled. Now, we can decide to scale one to two. Yeah. At 1,00 and then scale
3:14:24the final position out of the top of the day. If we take a stop loss on this one, we will close the
3:14:30day because the model is not responding properly because we are in consolidation phase. You see,
3:14:36we are whipsome whips. So, we protect the profit that we made for the day. Yeah. Now I like these
3:14:42setups because they are usually zero draw down like we are getting the whips. So up we are loaded
3:14:47here. When can we put this position to break even? Break this high we are risk free. Yeah let's see
3:14:54how it goes. You notice something about the really good setups that they go immediately in profit.
3:15:03That's the reason this one I decided to close only with $250 loss because if it
3:15:08fail to option I you are going to stop loss. There is no way you will win a trade like this.
3:15:18So we are in line with bias. We have aggressive sellers stopped absorbed not tapping directly
3:15:26on the low volume node but on the same level where the sellers get get absorbed before. Yeah, bias is
3:15:33there. Let's see if they reach at least the close. No, because it was over overlapped with this one.
3:15:44Imagine now they spike down. Close this one and stop this. That happens, right? Yeah, this will
3:15:50not surprise me. NASDAQ a lot of time does double legs with multiple spikes before jumping. But the
3:15:58good part about NASDAQ that now is not a good day. like we are managing to make profit but this is
3:16:03the worst day that you can have because usually when it's building momentum is trend falling this
3:16:08one is breakout we saw break out if we if we weren't in this saying right now where we're
3:16:14trying to obviously trade live and and continue to trade if you were at home and you took that first
3:16:20trade and you see this would you then okay it's a day for me or would you say when I see that this
3:16:26model fails goes back and I take profit from this probably I will just take another thousand profit
3:16:34and close for the day because it's not the market environment that is making me money. Yeah. Like I
3:16:39want to go more aggressive when it's like long session was really nice. You see uh directional
3:16:44move a lot of volatility in explosion like fast one to three setups now is getting like also for
3:16:52price action trader is getting really compressed. Yeah. like all this area is not making anything
3:16:58just breaking going down breaking going down. So now we have two scenario either we get another
3:17:031,000 profit and we close at 1,750 or we just get at least to break even this one when we break
3:17:14this high and we let it run. Yeah. If you let it run each contract that we open on this one Mhm.
3:17:24would give us. Let's go to the top of the day.
3:17:31For each contract we are making 3,680.
3:17:37So sometimes it's worth it to do it because if you get three or four contract you can make five
3:17:43figures per day. Yeah. But the win rate gets uh lower. So you can have these amazing days if you
3:17:50are heavy on the lot size like me. I I can open five, six, seven, 10 uh of mini contract. It's
3:17:57heavy. If you get 10 contract there, you can make $40,000. Uh but the win rate drops drops down. I
3:18:04This is just a personal like decision. I prefer a lot of days of 3,000 5,000 6,000 2,000 5,000
3:18:148,000 and to build the five to six figures for the month than having 40,000 minus 3 - 5 - 4 - 3
3:18:23is not psychologically is not um helping me you know and I think it's only ego because you can
3:18:30just take for example let's say that you are sometimes what happens is it always balance
3:18:35sometimes it balances Anyway, yeah, but one person hasn't had to take so many losses. Yeah. Which is,
3:18:41as you say, psychologically, most people couldn't handle that. There are going to
3:18:44be those occasional psychopaths who can handle handle in the beginning. Then I had one day where
3:18:49I was floating 28,000 for the day. I decided to keep for the eye. It just reversed five
3:18:56tick below the eye and I lost everything plus a stop loss on the next trades. So just I say, "No,
3:19:03it's just stupid. just you can close at 28,000 you are done for the week what you need to do
3:19:10so it's heavier from the psychology side it's I will say also less profitable but I I don't
3:19:18know because I never try to keep my position open but for example today you will be already
3:19:24in true loss if you keep the stop loss there you don't trail or you don't manage we would already
3:19:29taken three loss mhm we will not be sitting on a profit now soon we go to break even on
3:19:34this one because it's going really good. We we got inside here on the test. When we reach the high,
3:19:40are you expecting a squeeze with this three? Yes. Okay. That's the reason that I I say I will bring
3:19:48to break even not close full position here because with the right squeeze it can go really fast to
3:19:53for example 2,000. Okay. Can go really fast. So let's take as a reference that we bring to break
3:19:59even here. But what we can expect is momentum. Now building for the day and when does your typically
3:20:07your session come to an end? It depends like uh some session consider that I'm living in
3:20:13uh United Arab Emirates. So I'm uh for me New York session is uh really late. Yeah,
3:20:19it's already uh 7. Yeah, 7 and um usually I finish 8 9 sometimes 10. And it's not just convenient
3:20:31to keep. So I do the first three to four hours of the session. Yeah. And I just manage trades but I
3:20:38don't decide not to take other trades. Now we have um an opportunity to put our stop loss to break
3:20:44even already. If this break again this eye not to break even to stop no to break even to break even.
3:20:51If this eye breaks what the market is saying to us is that aggressive buyers are pushing sellers are
3:20:58trying to get aggressive. but they are getting failed. You know, I will not even say to break
3:21:03even, but I will secure other $250. So, putting stopping profit. So, in the worst case scenario,
3:21:08we close $1,000 and I'm still okay with it, you know. Let's see if it approached the high and get
3:21:16as Yes. So, yes, exactly $250 for the day. Um, that brings back back like if we didn't
3:21:24took the previous loss. Yeah. And uh you see building slowly the profit for the day is not
3:21:29heavy mentally and is not giving us the risk that if now this is a failed auction that it
3:21:35explode lower we get another $500 loss. Yeah. Like getting consistent wins getting all your
3:21:42trading journal green it's better than getting green on one day and red on all the other days.
3:21:50What happens if uh is that what you would expect though if price was to come to this level to go
3:21:54continue lower down to here? Considering that it's not breaking if it goes back here and it breaks.
3:21:59Yes. It will go at least to break even. Yeah. To to the previous level where we entered. So then
3:22:04you might as well put it into profit. Better be out. Better be out. like securing uh securing some
3:22:09profit for the day and uh be able to make 1,000 in the worst market environment. Secure for you five
3:22:19or 10,000 when the condition are good. Yeah. Like look at this market. The only trending environment
3:22:27that we did is this one and we monetized it. Exactly. All the rest is just managing your risk
3:22:32management and surviving this market condition. I decided to put that stopping profit here because
3:22:39this failed option. Yeah. Says a lot about what the price want to do. Okay. Says a lot. So if we
3:22:45break this one, we will collapse down and then you can say maybe we react here. Yes. We can try
3:22:50another trade but sitting on a profit. Yeah. Like we can risk the profit. Yeah. And if it does come
3:22:57down though to the low volume node for example, then you have then you you can use half of the
3:23:021,000 that we make. Yeah. for uh for for it but just I know NASDAQ and I know that after the huge
3:23:11gap that it made usually the day is rebalance you know because the yeah it's it's a really not clear
3:23:20situation about Iran and they are just compressing you see also the buyers are not getting any
3:23:25followup like they are trying to push in the market high but it was getting really aggressive
3:23:30by the sellers we are still not out of the position Let's see if this buyer can protect it.
3:23:40Consider that the profit that we made today is made considering one contract execution. Yeah.
3:23:48So you need to multiply it for the amount of margin you have available to open three,
3:23:53four, five contract. We are out. We are 1,000 in profit for the day. We are out.
3:24:00Now what we can do again is if this breaks the high try the squeeze. Okay. From here
3:24:12but it needs to break the high. You need a close again. Yes. Yeah. Squeeze the from here. Getting
3:24:22$1,000 profit. I think we can reach this easily if the price squeeze correctly. Mhm.
3:24:30So now we are 1,000 another 1,000 per contract. Consider that with five contract
3:24:36available you will close the day at 10,000. Yeah. People don't consider how much profit
3:24:42it is. But if you can do this in these days, this candle close we are in. Mhm.
3:24:52You can also get a little bit more aggressive. For example, this one it's $290 each contract.
3:24:57You can get two contract and get 600 risk to make other 2,000. Yeah. Yeah. Now we are
3:25:02making all the trades with one contract. So we just consider one contract. We need to be with
3:25:06a candle out of this area. Yeah. For confirming trades. Still no. Did you ever in the beginning
3:25:18when when looking at charts in this way when price got above just enter without the closure?
3:25:24I that's the reason now I'm so calm. What would you say helped you to overcome that? Uh the equity
3:25:30line. The equity line. You see this one is not accepting is didn't close. Now this is the first
3:25:38candle that can close above and we need to adapt. Like if the candle for example is closing here,
3:25:46it's still valid but we need to take other $100 of risk. Okay. So we just need a candle that
3:25:52close. At the moment is not closing. And every time that you reject, as I told you, the setup
3:25:58gets weaker and weaker. So every time I get more um demanding from my setup. So for example, now
3:26:04I expect for a breakout of this. Mhm. So I need a breakout of this level. I will take still $385
3:26:14to target for I think what you said is right though in terms of uh the day the
3:26:18day that we're trading today with obviously that large gap that is a large gap as well.
3:26:223% um of a gap that got reclaimed and then we did have some decent movement after that reclaim
3:26:29as well in London right um as well as coming into New York we had a very good move that we captured
3:26:34as well so you know in reality we could have this move but we could also just chop and chop probably
3:26:43for the way this presenting like breaking the high of the consolidation and getting in this chop It's
3:26:52a decision day and it's Monday. Yeah, it's really common. Yeah, Monday that it happens like Monday
3:26:57and Friday are my worst day in performance. Yeah, because they are not explosion day. They are I
3:27:03still make profit but the profit factor is like way lower. Mhm. But um if it breaks there you
3:27:11see again fake breakout getting back inside we are just not doing anything just compressing the only
3:27:17thing that I can expect is that if we approach this high we see some acceleration that's the
3:27:21reason I still say I can also take double the risk here and risk $700 if it goes in the worst case
3:27:31scenario I'm still in profit for the day small profit but I'm profitable for the day. Yeah. And
3:27:36if you take double the risk, it's another 2,000 that this will bring the day to 3,000. Now let's
3:27:41consider we take this trade and we close the day at 3,000. We are using one contract. Okay,
3:27:46let's see also to contract is what you can do with 100,000 $100,000 account. Yeah, it's 3%
3:27:53in one day. People don't understand how much it is if you can do this consistently. Of course,
3:27:57like the edge found will be craving for you like we will be knocking on your door. It's
3:28:03a good accumulation what he's doing here. This is a good pattern taking the low rejecting on
3:28:09the big trades. This is really nice. So really when it comes to the the big buyers and sellers,
3:28:16for example, if a seller stepped in right now but no follow through, that's great for that
3:28:21narrative. If a buyer steps in right now with follow through, that's great for the narrative.
3:28:26Uh what you don't want to see is a seller step in and it follows through or a buyer follow
3:28:30uh fail. Yes. If you are long. Yes. Yeah. Opposite if you are short like we were seeing of course see
3:28:36again fake breakouts times with the rules that I created that you need to see a full body candle
3:28:44above the eye. You are saving all these small stops. Yeah. Because you are not engaging. You
3:28:50are simply not engaging. I told you NASDAQ is not uncommon that it will Mhm. do this gain. If
3:28:58it got down there now though, at this point in the session, would you still be interested in
3:29:02it or? I would. It would be an amazing trades, but it means that I need to sacrifice time with
3:29:09uh with my family and I need to not eat because I need to manage the trades. It's really late
3:29:15now for for me. I will take it, but I will bring it to break even as soon as possible. And this is
3:29:21the only set and forget trades that I will do. And then yeah because this testing of this I go break
3:29:27even at the first big volume and then if it reach the eyes or if u I need to close it uh before the
3:29:34end of the day I just don't care. Yeah just I need to be protected as soon as possible but I
3:29:39need also to protect my mental health. Yeah, this is something that people are willing to sacrifice
3:29:44just to make additional 50 bucks per day or additional I'm not willing to do it because
3:29:49I am already in a position where money it's not important for me and 1,000 plus per day doesn't
3:29:57change my life. Yeah. So I can decide when to engage and where not to engage. For example,
3:30:02now now we are doing education but this day I will say 1,000 it's enough. Tomorrow it's another day
3:30:08and I will wait for the explosion day. I was like this is the goal of every trader. If you can make
3:30:15money or just close at break even in the days that your model is not working. So for example,
3:30:20you have a min reverting day and you have a trending day, you close break even a small
3:30:23profit, you're great. Yeah. Same for trend following model. Whilst we're waiting on this,
3:30:30if we go down just out of curiosity and I'm sure there might be some who are might be thinking this
3:30:36or asking this. 5 minutes or 1 minute? Uh we stay one minute. If we come down to that level where we
3:30:41rebounded off ah yes this one like there will be people no doubt thinking like why not why don't we
3:30:47try and execute there because that's going to give us such a larger trade right and I know we talked
3:30:53about it slightly earlier but like what would your what would your opinion on that be because um this
3:31:00setup here is using the opposite logic that I'm using is using one big run with lower rate. Yeah.
3:31:08Like I can guarantee to you that if you watch NASDAQ session opening seven times out of 10 if
3:31:16you try to get the aggression you will fail. Three times out of 10 you will be right and you will you
3:31:22will take a huge risk to reward trades. But you have seven red days and three green days and you
3:31:28don't know when they're presented. If this is okay for you do it like volume is greater because it's
3:31:34saying that these sellers are getting absorbed. Just I tried this model and it's not for me. Like
3:31:40when you trade big sides getting 7 days strict loss that you see - 10,000 - 5 - 6 it's heavy go
3:31:50to sleep with this heaviness is for me it's not I I see before I was searching for the home run
3:31:57you know I was wanting to take you see it break the Mhm. the session. So this setup of getting
3:32:03the full candle positioning yourself is not valid anymore. This market condition is in reverting.
3:32:12Yeah. So just going to revisit and this should let people understand that taking out here is saving
3:32:23you money. Yeah. Mhm. Like and if we kept the trade till here, we didn't only not profit this
3:32:30$250, but we will also lose $500. So, as you can see, and we can demonstrate this,
3:32:36risk management is if not more important at the same level, cuz keep in mind as well that was
3:32:42with one contract. So, if it was more, if it was more it was 7,500. If it was 10 more, at the end
3:32:49of the month, it count. Now the we are completely compressing. Let's see if we accelerate a little
3:32:59bit to get to this final point. If not and call it a day there because it's been incredible. If not,
3:33:06we got to see everything though. We got to see break even. We got to see four hours of I know.
3:33:10Yeah. Yeah. I think we will just close the day because it's full consolidation rits. Yeah. And uh
3:33:17we'll just check later how it went. If it closed the low volume node and went up. Yeah. Yeah,
3:33:22we'll get a screenshot or something going for sure. Everyone at home, finally we come to
3:33:26an end. Drop a comment of your biggest takeaway from this episode. Did you enjoy the live trading
3:33:32segment? If so, drop it in the comments. Let the people know out there that they need to be doing
3:33:38live trading here on Chartax as well. Obviously, a massive shout out to Fabio because it takes a lot.
3:33:44It wasn't planned. I, you know, I didn't ask him. He he offered to do this which is incredible and
3:33:48such incredible trading skill and you get to see it here live what a true professional trader does
3:33:54but also what a true professional playbook and strategy looks like really. Um but links for Fabio
3:34:00will be in the description below so make sure you check that out right now. Uh hit subscribe,
3:34:05hit like. Other episodes are on screen. We've been chaff and until next time, take

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