Training The Eyes Ep. 6 | Inter Equity Trading — Transcript

Full transcript

1. 0:00YouTube, what's going on? Welcome back
2. 0:02to another Interquity Trading video.
3. 0:04Today, we're hopping right back into
4. 0:06that fan favorite series, training the
5. 0:09eye. This is going to be episode number
6. 0:11six. We're going to be going through a
7. 0:13trade on AUDUSD.
8. 0:16But before getting into the entries, I
9. 0:17really went into depth on building that
10. 0:20narrative, okay? Building that story and
11. 0:22starting with that naked chart and
12. 0:23actually using replay to emulate those
13. 0:25live conditions as much as possible to
14. 0:28train those eyes. That's what we're
15. 0:29trying to do here is I'm trying to drill
16. 0:31these concepts into your eyes to a point
17. 0:33where you approach the live markets and
18. 0:36it becomes second nature. If you guys
19. 0:38like this video, please toss a thumbs
20. 0:40up. It helps us a bunch. Leave a comment
21. 0:42down below of what kind of videos you
22. 0:43guys want to see from us next. Turn
23. 0:44those noties on. We got lots more
24. 0:46content coming for you guys. Talk soon.
25. 0:52All right, guys. So, I have in front of
26. 0:54us right now AUDUSD
27. 0:57on the 1 hour chart. And you guys know
28. 0:59the drill. I'm not going to be I don't
29. 1:00really want to switch between time
30. 1:01frames too much. The sole purpose of
31. 1:04these episodes of this series again is
32. 1:06to train your eye a naked chart
33. 1:09perspective all the way up to a marked
34. 1:11chart perspective. I want you guys to be
35. 1:13able to look at these naked charts as
36. 1:16per the one in front of us right now and
37. 1:18understand how to mark up the charts
38. 1:21accordingly following price action
39. 1:23tracking that narrative from the
40. 1:25beginning all the way to the end. Okay,
41. 1:27so I have actually backed up price on
42. 1:29replay mode right now to an important
43. 1:31time and we'll get to that. But first I
44. 1:34want to talk about price action over
45. 1:36here. You can see how AU sold off went
46. 1:39higher here printing this high in the
47. 1:41market. From this high we sold off
48. 1:43little pullback and then a big
49. 1:44continuation to the downside. From there
50. 1:47we can see we printed this new low in
51. 1:49the market. Okay, taking out previous
52. 1:52lows. From a common retail perspective,
53. 1:55they will now view this as a BOS in the
54. 1:58market. Since we have taken out previous
55. 1:59lows, printed a new low, they've now
56. 2:02viewed this as a BOS based off patterns,
57. 2:05based off strategy and structure. Again,
58. 2:09new low printed in the market down here.
59. 2:11So, BOS for retail. We need to
60. 2:13understand that. That's very important
61. 2:15because automatically I now know that
62. 2:17there is going to be liquidity above
63. 2:19this high eventually because sellers are
64. 2:21interested in selling below it based off
65. 2:24this common retail pattern. low taken,
66. 2:26new low. Retail wants to see price back
67. 2:29up at the high and they want to sell it
68. 2:30back down. And as you guys can see,
69. 2:32price actually ended up going bullish,
70. 2:34took out the high. Why is that
71. 2:36important? This, and we've talked about
72. 2:39this how many times now, right? This
73. 2:41induces buyers in the market. The
74. 2:44importance behind us taking out this
75. 2:46previous high is now buyers are
76. 2:49interested in buying this market. So
77. 2:50every time we get a reaction here, here,
78. 2:54here, this is inducing buyers to go long
79. 2:57and we want to understand that because
80. 2:58you want to be able to track this
81. 3:00liquidity. So what can we see here? For
82. 3:01a while after printing this new high,
83. 3:04look how the market respected this low
84. 3:06once, twice, and actually ended up
85. 3:08taking out highs. You can see that we
86. 3:11built liquidity at this high here. I
87. 3:13have marked out for quite a while,
88. 3:14right? We have about 11 12 hours of
89. 3:17price action building liquidity at this
90. 3:19high. Finally, we come up, spike it, and
91. 3:22we sell off sharply. Zoom back out. All
92. 3:25right, so again, we spike all that
93. 3:27liquidity. We induce a bunch of sellers,
94. 3:29trap them, and then we finally we trade
95. 3:31lower. Starting to sweep some of these
96. 3:33areas on the left hand side. Again,
97. 3:35every single time we get a reaction from
98. 3:36these areas, view it to be false. So,
99. 3:39look what happens here. Okay, and we're
100. 3:40going to track this. Price comes into
101. 3:42this area on the left hand side. So, we
102. 3:45grab all this liquidity from the left.
103. 3:47Price taps into this area from the left.
104. 3:49This is when I want you guys to
105. 3:51understand something. Any sort of buys
106. 3:53coming out of this area, this red area
107. 3:55from the left-h hand side, if it goes
108. 3:57long, that's fine. This is now known as
109. 4:00a low probable move. So yes, there was a
110. 4:03long that occurred and it was actually
111. 4:05just over 50 pips. However, it's a low
112. 4:08probable move. We do not want to be
113. 4:10buying in a bearish market. Why do I say
114. 4:13bearish market? We have taken out this
115. 4:16high. So now as per our system, our
116. 4:18strategy, we know that we want price
117. 4:20back down to the downside. So why would
118. 4:22we be buying this market? So again,
119. 4:23we're looking for sells back down. We
120. 4:25get that reaction out of this area from
121. 4:27the left-h hand side, view it to be
122. 4:29false. Any reactions out of here will
123. 4:31literally just build liquidity at the
124. 4:32lows for us. You can grab this low,
125. 4:34okay, on a lower perspective. But
126. 4:36overall, we do want price back down
127. 4:38here. So we're going to plot that blue
128. 4:39line on again. We go bullish. What was
129. 4:41the intention behind this bullish move?
130. 4:43We can clearly see, I'll zoom in a
131. 4:45little bit more here. We can clearly
132. 4:47see, look at this liquidity buildup.
133. 4:48We've left sellers entering the market
134. 4:50in this kind of price action. Then we
135. 4:52get that sell off to the downside. That
136. 4:53tells me we're going to have liquidity
137. 4:55where above this high. And look what the
138. 4:57market does. We struggle down here for a
139. 4:59bit. And then again, look, look at the
140. 5:00struggling kind of price action even
141. 5:01over here. 12 13 hours, we couldn't
142. 5:03break this high. Building, building,
143. 5:05building, building, building. Finally,
144. 5:06we go long. Perfect. Trapping any
145. 5:08sellers that were shorting below this
146. 5:11high. This is when you want to start
147. 5:12analyzing the price action that we get
148. 5:14out of that. Look at this. Build, build,
149. 5:15build, build, build. What do I mean by
150. 5:17that? Look at this kind of price action.
151. 5:18We'll just put two lines on here to kind
152. 5:19of represent a little bit of a a channel
153. 5:22of price action. Just like this. Build,
154. 5:24build, build. Finally, we trap higher.
155. 5:26Look at the sharp reaction out of that.
156. 5:28What's the importance of this? We have
157. 5:31taken out a low from the left hand side.
158. 5:33Now, again, why is that important? It is
159. 5:35important because now since we have sold
160. 5:38off aggressively with speed, it's
161. 5:40induced sellers into the market. Same
162. 5:42thing over and over, right? Look at the
163. 5:44volume. One, two candles. Two candles
164. 5:47sweep out like what
165. 5:5012, 13 hours of price action. So this
166. 5:53high volume move taking out lows induces
167. 5:56sellers again. Why? They're going to be
168. 5:58trading this kind of price action.
169. 5:59Remember, based off patterns and stuff.
170. 6:01So a common pattern, a common common
171. 6:04theme is price sells off, takes out a
172. 6:07low. So we're going to view this area to
173. 6:10be a trap. Look what we got here. Same
174. 6:12thing. So since we have taken out this
175. 6:14low with speed, even high volume, view
176. 6:16this area to be a trap. We want to now
177. 6:19see price above this high. Okay. So now
178. 6:22you have to understand this whole
179. 6:24narrative we built that we've been
180. 6:25tracking everything here. trapping
181. 6:27sellers, big sell-off to the downside,
182. 6:29reacting to areas on the lefth hand
183. 6:31side, going bullish in a bearish market.
184. 6:35This move, and this is very important,
185. 6:37this move from low to high is now
186. 6:41providing us an opportunity to sell back
187. 6:44down. Okay, you need to wait for this
188. 6:46kind of move to occur, low to high. And
189. 6:49again, if we zoom back out, don't forget
190. 6:50about this whole bearish narrative, this
191. 6:52whole bearish bias to the downside. We
192. 6:54want this low taken out. Why? Don't
193. 6:57forget about this guys. This high has
194. 6:59been taken. So that's a BOS for retail.
195. 7:02Automatically there's going to be a
196. 7:04ton of liquidity at the lows down here.
197. 7:05Okay? So we want to be selling into it.
198. 7:08Cool. Now let's head back into the
199. 7:09current price action again and track
200. 7:11this narrative. So look, a lot of volume
201. 7:13on this selloff again inducing early
202. 7:15sellers. We do not want to sell yet. We
203. 7:18want to see price above. And how would I
204. 7:20enter this? I'm gonna plot this cell
205. 7:22tool on right at this high and I'm going
206. 7:25to cover this high from the lefth hand
207. 7:27side with my stop loss. Okay, we're
208. 7:28going to talk about this in a moment.
209. 7:29I'm going to drag my target to the
210. 7:31target we've already determined we've
211. 7:32been talking about just there. Perfect.
212. 7:34Two things we're going to talk about
213. 7:35here. Why are we entering here? Why is
214. 7:38our stop loss covering here? Okay,
215. 7:39number one, why are we entering here?
216. 7:41Because since we have taken out this
217. 7:43low, we now understand that this high is
218. 7:46going to be having liquidity above it.
219. 7:48there's going to be liquidity, but
220. 7:50nonetheless doesn't matter because we've
221. 7:52had a big sell off to the downside
222. 7:54inducing sellers, which means this area,
223. 7:57this whole red box that we've drawn on
224. 7:59is going to be a trap. That'll induce
225. 8:01liquidity above this high. Simple as
226. 8:03that. We like to take entries as soon as
227. 8:05liquidity is taken, right? So, as soon
228. 8:06as this high is taken, liquidity has now
229. 8:08been um stabbed in the market. It's been
230. 8:10liquidated. It's been trapped, whatever
231. 8:12you want to call it. Now, we're entering
232. 8:13at that position. Why is our stop going
233. 8:15above this high? Our stop is simply
234. 8:17covering this high because look, it's a
235. 8:19liquidity block. Remember what we talked
236. 8:21about here? We built built built built.
237. 8:23Then finally, look what this candle did.
238. 8:25This whole area was created because we
239. 8:28have ran liquidity. We ran all of this
240. 8:30liquidity built at these highs and then
241. 8:33we sold off with lots of volume. So, I'm
242. 8:35viewing this high right here, guys, to
243. 8:38have no liquidity above it. So, that's
244. 8:39why I'm letting my stop cover it. Okay?
245. 8:42Think of the logic behind that. Again,
246. 8:44re-watch this if it doesn't make a lot
247. 8:46of sense. I get a couple questions on
248. 8:47the liquidity block. It's actually not
249. 8:49too complicated. Liquidity built,
250. 8:51liquidity taken, and ran away. So now we
251. 8:54can use this area as an entry point.
252. 8:57Okay, so we take that entry here. Stop
253. 8:59loss goes above this high. And you can
254. 9:00see with my crosshair, look how we're
255. 9:02covering that high. Let's play price
256. 9:03action out a bit here.
257. 9:10We are now trading at the high. Look at
258. 9:11this. This is now going to be an area.
259. 9:14Remember, sellers want to be entering
260. 9:15positions here or even in here. Anywhere
261. 9:17in this imbalance, sellers want to be
262. 9:19entering positions. We understand that.
263. 9:21So, there's going to be liquidity above
264. 9:22this high. We're going to put our limit
265. 9:23right at this high at 0.66102.
266. 9:27And look at the next candle does. Taps
267. 9:30us in. Since we've taken out this high,
268. 9:32what do we view this as now? Train those
269. 9:34eyes, guys. Train those eyes. We've
270. 9:36taken out this high. Boss it to the
271. 9:38upside. Buyers induced. They want to buy
272. 9:41the low. Okay. And look how we get a
273. 9:44slight rejection as well. Next candle
274. 9:46comes in. Boom. Taking out those lows.
275. 9:49Perfect. Remember where we have our
276. 9:51target. Any any reactions before this
277. 9:54low is taken. Deem it to be false. Okay.
278. 9:58A trap. And we continue with price
279. 9:59action.
280. 10:03Look at this guys. Little bit of a a
281. 10:05pullback in the market. again deem it to
282. 10:07be false because any reactions above the
283. 10:10blue line is literally just building
284. 10:13liquidity for us. That's it. Inducing
285. 10:15buyers, early buyers.
286. 10:19And there you go. Look at that sell move
287. 10:21we get after off the back of that. Ends
288. 10:22up moving actually quite a bit more to
289. 10:24the downside. But these setups are the
290. 10:27ones you guys want to be looking for.
291. 10:28Textbook, okay? all the way from
292. 10:31building that narrative, building that
293. 10:32direction in the market to taking that
294. 10:34entry and then having the most clean
295. 10:37clean target. So, this is actually like
296. 10:39a breadandbut kind of setup. Please,
297. 10:41please, please re-watch this video if
298. 10:43you guys need to. All right, guys.
299. 10:44Thanks for watching today's video. I
300. 10:47hope you guys enjoyed episode number
301. 10:48six. I'm going to be recording a lot of
302. 10:50these. I want to get a lot of these
303. 10:51videos out. They've been very, very
304. 10:53valuable to a lot of you guys out there.
305. 10:54So, again, subscribe if you guys have
306. 10:56not yet already. Drop a like. Leave a
307. 10:59comment down below of what you guys
308. 11:00thought of the episode. Maybe what you
309. 11:01guys want to see in the next coming
310. 11:03episodes.