YouTube2Text

Why Every Break Of Structure You Trade Is A Trap (Full Guide) — Transcript

by Waqar Asim · 5,336 words · 759 segments · language en · Watch on YouTube

Full transcript

  1. 0:00Do you believe that the markets are
  2. 0:01rigged?
  3. 0:02>> Well, I've spoken to traders that say
  4. 0:03that's conspiracy theories. The market
  5. 0:05is too big, too much liquidity, no one
  6. 0:07has enough money to move the market to
  7. 0:08get your little stop loss. And on the
  8. 0:10other side, I've spoken to some of the
  9. 0:11greatest traders in the world, people
  10. 0:12that are managing hundreds of millions
  11. 0:14of dollars, or real market makers, and
  12. 0:16they say, "Hey, that's not a conspiracy
  13. 0:17theory, but it's also not personal.
  14. 0:19Market mechanics simply means that you
  15. 0:21need liquidity for the market to move.
  16. 0:23For every buyer that exists, you need a
  17. 0:25counterpart, a seller. And therefore, if
  18. 0:27you have a large buyer with billions of
  19. 0:29dollars to transact, and there isn't
  20. 0:31enough sellers, well, then you got to
  21. 0:32create the environment to be paired off.
  22. 0:35This is just a market auction, market
  23. 0:37fluidity, and I'm going to share with
  24. 0:38you in this video exactly why on an
  25. 0:40intraday perspective, on the lower time
  26. 0:42frames, the most important thing is
  27. 0:44going to be liquidity, but more
  28. 0:45important is going to be traps. I'm
  29. 0:47going to explain to you the why this
  30. 0:49exists. I'm going to show you exactly
  31. 0:51how to identify it, and I'm going to
  32. 0:52show you how it's on every single asset
  33. 0:54class, every single day, multiple times
  34. 0:57a day, and before every major move in
  35. 0:59the market, the move of the day, the
  36. 1:01trade of the day, before that, every
  37. 1:03single time there will be the trap of
  38. 1:05the day. So, by the end of this video,
  39. 1:06you're never going to take a stop loss
  40. 1:08hunt ever again. You're never going to
  41. 1:10fall victim of a market manipulation, or
  42. 1:12a market trap, and most importantly, you
  43. 1:14are going to be on the right side.
  44. 1:16Okay, so what we're going to do is a
  45. 1:17quick top-down analysis. We're on the
  46. 1:19daily time frame. I'm going to walk you
  47. 1:20through the framing, the correct way to
  48. 1:22frame your top-down analysis, not the
  49. 1:23full laborious process that people spend
  50. 1:25hours doing, trying to focus on every
  51. 1:27little detail. I'm going to show you how
  52. 1:28you can do it in 30 seconds, and the
  53. 1:30most relevant parts of it, and we're
  54. 1:31going to do it in packages. So, our
  55. 1:33daily time frame is one package. We
  56. 1:34don't need to go higher. The next
  57. 1:35package is going to be 4-hour and 1-hour
  58. 1:37time frame. That's our middle time
  59. 1:38frame. And then we're going to go to
  60. 1:39M30, M15 as our lower package. This is
  61. 1:42our intraday time frame, and then M1 for
  62. 1:44entries. These are the correct time
  63. 1:45frames for a top-down analysis. I'm
  64. 1:47going to show you why it's most
  65. 1:48relevant. And then all these boxes and
  66. 1:50lines you see on the screen, I'm going
  67. 1:51to show you how you can have a clear
  68. 1:52code, so that you know how to do a
  69. 1:54top-down analysis in a
  70. 1:56clean way, so that you don't need to
  71. 1:57keep jumping between time frames to
  72. 1:59remind yourself of a piece of
  73. 2:00information. That's a waste of time.
  74. 2:01It's inefficient. So, let's do a
  75. 2:02top-down analysis correctly together.
  76. 2:04Okay, so starting off daily time frame,
  77. 2:06we had a previous high in the market
  78. 2:08that made a higher low that goes on to
  79. 2:10make a new higher high. Very simple.
  80. 2:11Bullish market structure. The key point
  81. 2:13here is this was a previous ceiling in
  82. 2:15price that has now been broken. That is
  83. 2:17the definition of breaking a ceiling and
  84. 2:19finding new territory in price is the
  85. 2:22definition of a main push. So, when I
  86. 2:23found a main push on the daily time
  87. 2:25frame, the biggest one, I put a green
  88. 2:27arrow here so we know exactly what it's
  89. 2:28for. What we expect in a bullish market
  90. 2:30when a new main push has been found is
  91. 2:31replication. So, we expect price to
  92. 2:33continue to break the ceiling like so.
  93. 2:36We make our daily external high of the
  94. 2:38range, our daily external low of the
  95. 2:40range, and we say price needs to be
  96. 2:41broken either the high or the low of the
  97. 2:43range. Makes sense if we are bullish to
  98. 2:44continue bullish and break this ceiling
  99. 2:47at some point. Now, that could take
  100. 2:48months to happen. So, it's not my focus,
  101. 2:50which is why top-down analysis, in my
  102. 2:52opinion, is a bit of a waste of time
  103. 2:53because if we're not in the relevant
  104. 2:54areas, we're waiting for something to
  105. 2:56play out for months, and how is that
  106. 2:57relevant for today's New York session?
  107. 2:59That's the question. So, what I do here
  108. 3:01is quickly three things. Top-down
  109. 3:02analysis is find the main push and mark
  110. 3:04out its range, and know I'm going to
  111. 3:05continue bullish most likely. Second
  112. 3:07step is point of interest. There's only
  113. 3:09going to be two. It's going to be
  114. 3:10decisional and extreme. Your decisional
  115. 3:12is very simple. It's the area that broke
  116. 3:14structure like so. The last pullback you
  117. 3:16had before you broke structure. Who
  118. 3:18broke the structure? That's your
  119. 3:19decisional area, which is going to be
  120. 3:21this area right here. And see how we had
  121. 3:23a buyers reaction before it failed. So,
  122. 3:25we saw the decisional failed, and we
  123. 3:27ended up coming to the extreme, the
  124. 3:28origination point, and we came into it.
  125. 3:30We had a early tap, gave a break of
  126. 3:32structure to invite in buyers because
  127. 3:34they'll be loading up on buys in this
  128. 3:35area looking for bullish to continue.
  129. 3:38That didn't happen, and we actually got
  130. 3:39something really great, which is a major
  131. 3:42inducement down here of a daily time
  132. 3:44frame structure point tapping into our
  133. 3:47demand area. So, when I see a major
  134. 3:49inducement, this is fuel, which is why
  135. 3:50immediately after we see a break of
  136. 3:52structure, the last lower high that made
  137. 3:54the lower low, we have a higher high.
  138. 3:55And now we can expect price to continue
  139. 3:57towards our targets, intraday target,
  140. 3:59the swing targets, and the long-term
  141. 4:01targets all going to be met cuz we've
  142. 4:03got alignments now with a catalyst that
  143. 4:05is liquidity. So we need to therefore
  144. 4:06understand the trap that goes on the
  145. 4:07bigger picture, but also the traps that
  146. 4:09go every single day. I'm going to show
  147. 4:10you how to read it like a storybook.
  148. 4:12It's so much fun. So therefore, my
  149. 4:13top-down analysis is quickly a glance to
  150. 4:15find three things. Where's the main push
  151. 4:17to identify trend? Where's the POIs?
  152. 4:19Where's the liquidity? And I connect it
  153. 4:21together to understand intent. Once I've
  154. 4:22done that, 30-second glance, I go down
  155. 4:24to the next package, which is my 4-hour,
  156. 4:261-hour. By the way, if you want to have
  157. 4:27specific notes of FAQs from the AI
  158. 4:29coach, diagrams, case studies, examples,
  159. 4:31trade examples beyond just the general
  160. 4:33map, which is market structure, POIs,
  161. 4:35trend analysis, these are the basics,
  162. 4:37but you want to learn about the engine
  163. 4:39that powers it through manipulations,
  164. 4:40intense control, intraday dynamics,
  165. 4:42momentum, and clear traps on
  166. 4:44intersession perspective, then I
  167. 4:45encourage you to click the link in the
  168. 4:47description to download today's episode
  169. 4:49companion absolutely for free. We do
  170. 4:50this every single week so that you take
  171. 4:52more out of each video, and then you
  172. 4:53have resources to look back upon so that
  173. 4:56you don't need to keep watching these
  174. 4:57videos. You have everything in one
  175. 4:58place, basically like a textbook when
  176. 5:00you connect together all of these
  177. 5:01YouTube videos and all the sessions, you
  178. 5:02will have a folder of resources with
  179. 5:05everything that you need to study to
  180. 5:06become a profitable trader. That's link
  181. 5:08below, grab it for free, and let's get
  182. 5:10back into the video. Now, what I like to
  183. 5:11do is start at the top of the main push,
  184. 5:13the highest point in the market on that
  185. 5:15daily impulse, you remember. So we had
  186. 5:16that huge daily push from the low all
  187. 5:18the way to the high. I start at the top
  188. 5:20because I know that previous portion was
  189. 5:21a push up. That was one phase. The next
  190. 5:24phase is going to be a retracement.
  191. 5:25After an impulse, you have a
  192. 5:26retracement. How deep it is, how long
  193. 5:28it's going to take, all of those details
  194. 5:29yet to be confirmed, but let's read it
  195. 5:31like a book. So what I like to do is I
  196. 5:33put these red boxes to help you
  197. 5:34understand it, but I need to understand
  198. 5:36pivot points, the structure. And this is
  199. 5:38how I do it. Now, I'm not going to do
  200. 5:39this every time, but I'm helping you
  201. 5:40understand what we're looking for. And
  202. 5:42we're looking for after the high in the
  203. 5:43market, we look for a retracement. That
  204. 5:46retracement could still continue
  205. 5:47bullish. We're in a bullish market,
  206. 5:48right? Like we were doing previously, we
  207. 5:50could continue bullish. But when I see
  208. 5:52this area fails to make a higher high,
  209. 5:54so we respect the ceiling, and it goes
  210. 5:57on to break it and make a new low,
  211. 5:59then I see this conversion, which means
  212. 6:01I could have seen market do this
  213. 6:03impulse, retracement, continuation,
  214. 6:05bullish. But what I in fact see is we
  215. 6:07had that impulse, then we have a
  216. 6:09retracement, could go to make bullish.
  217. 6:11We have the bullish signs, that fails
  218. 6:13and makes a lower low, breaking the last
  219. 6:15low. When I've seen these two legs, one
  220. 6:18leg, two leg of bearish, I know the
  221. 6:20complex pullback has begun. The
  222. 6:21retracement has begun, and we have a
  223. 6:23clear objective now. And what we're
  224. 6:24going to do is we're going to quickly
  225. 6:25come to my AI coach. So I've typed out
  226. 6:27my question into the AI coach. What is a
  227. 6:29market retracement and complex pullback
  228. 6:31that comes after a main push, putting
  229. 6:33the time frames and details, and how do
  230. 6:34I identify and read it, and what are the
  231. 6:35steps and signs? Let's send it in. So
  232. 6:37while this loads up an answer, let me
  233. 6:39tell you the AI coach is something that
  234. 6:40we created after every single YouTube
  235. 6:43video that I made, after every single
  236. 6:44private community call that I've done
  237. 6:46for VIP members going back a years,
  238. 6:48hundreds of hours, plus every trade that
  239. 6:50I've taken, plus training that I did
  240. 6:52with it on everything theoretical, all
  241. 6:54the doubts, all the questions, all the
  242. 6:56nuances, all the scenarios. No joke, we
  243. 6:58loaded up over 10 million data sets from
  244. 7:01all the transcripts, all the trades, all
  245. 7:03the journals, all my broker statements,
  246. 7:04everything connected to empower one LLM.
  247. 7:07So as this loads up, you can see it's
  248. 7:08thorough and it's in detail, and it's
  249. 7:10powered by everything that I know. It's
  250. 7:12like having me in your pocket, and it
  251. 7:13gives everything in organized way. So
  252. 7:15what is the textbook definition that I
  253. 7:16would give for how to read a complex
  254. 7:19pullback? So a complex pullback after
  255. 7:204-hour main push, that's exactly what we
  256. 7:22have. So this is the area we've had a
  257. 7:23bullish impulse, and I want to start
  258. 7:25read the signs of this complex pullback.
  259. 7:26After the market makes a main push from
  260. 7:28point A to point B, creating a new
  261. 7:29higher high, the market doesn't just
  262. 7:31keep shooting up forever. It needs to
  263. 7:32retrace. The retracement is what we call
  264. 7:34the complex pullback. And obviously
  265. 7:35momentum comes into it fast and
  266. 7:37aggressive as the main push. These are
  267. 7:38going to be slower, choppier, builds
  268. 7:40liquidity and traps, cuz that's the
  269. 7:41objective. How do I identify it?
  270. 7:43Identify the main push, that's what we
  271. 7:44already did. Bullish impulse, new
  272. 7:45territory, new higher high in the
  273. 7:47market. Watch for the internal break of
  274. 7:48structure. After the main push
  275. 7:49completes, look for internal break of
  276. 7:51structure that happens. That's what we
  277. 7:52did. And then you read the internal
  278. 7:54structure of the pullback. And here's
  279. 7:55where it gets interesting, where we
  280. 7:56start to see price making lower highs
  281. 7:58and lower lows, as opposed to continuing
  282. 8:00making the higher highs. So, that was
  283. 8:01the detail that confirms to us that
  284. 8:03we've started the complex pullback. And
  285. 8:04then the next step, which we're going to
  286. 8:05do together, is identify the targets,
  287. 8:08the demand levels, where price the
  288. 8:10pullback could be headed. This could be
  289. 8:11towards POIs or towards liquidity pools.
  290. 8:14And that's what we call the efficiency
  291. 8:15of the pullback. We need to understand,
  292. 8:17is this a relevant demand area? Do we
  293. 8:18qualify it to find the real efficiency
  294. 8:20of the pullback? And then we know the
  295. 8:21story and the objective that price is
  296. 8:23going to be doing. And I'm going to
  297. 8:24scroll through this quickly, you can
  298. 8:25take a look in your own time. And that's
  299. 8:27what we need to focus on, because that's
  300. 8:28when we see the real intention about
  301. 8:29reading control. And when you see a
  302. 8:31push, the main push that has the
  303. 8:33institutional momentum behind it, then
  304. 8:35you know exactly where you should be
  305. 8:36trading, what direction you should be
  306. 8:37trading, where you should be trading
  307. 8:38from. And you look for the confirmation
  308. 8:40signs, which will also be traps and
  309. 8:42liquidity. Control is reading these all
  310. 8:43together in real time. You see price
  311. 8:45arrive to a demand zone, and that leads
  312. 8:47to BOS, and that demand zone has an
  313. 8:48inducement above it. Price has swept
  314. 8:50Asia low before it arriving at the key
  315. 8:52time window. That's just not a POI.
  316. 8:54That's a powered zone where everything
  317. 8:57aligns. You understand the cause, and
  318. 8:59you understand the effect. Everything
  319. 9:00connected. And here's a table for you
  320. 9:02just if you want to screenshot it and
  321. 9:03look at it more practically. So, what
  322. 9:04I'm going to focus on is exactly this
  323. 9:06price action part. After the major
  324. 9:07inducement that we're seeing, and we're
  325. 9:09looking for buys now, because we
  326. 9:10understand control and intent. And these
  327. 9:12sells become traps now. Let me show you
  328. 9:14exactly why that works. Okay, so the
  329. 9:15next question I'm going to ask is this
  330. 9:17diagram. I'm going to put it into our AI
  331. 9:19coach, we can upload images. And I want
  332. 9:21to explain exactly how, in this scenario
  333. 9:23that we have in our market situation,
  334. 9:25where you have a bullish market, and
  335. 9:26then you get a major inducement, like
  336. 9:28here. You get the major inducement. Some
  337. 9:30people are going to see bearish break of
  338. 9:32structure. They're going to see, "Oh, we
  339. 9:33had a bearish break of structure. This
  340. 9:34was the last higher low that made a
  341. 9:36higher high. We've now switched
  342. 9:38and we can say we've taken all this
  343. 9:39liquidity. This is the inducement. This
  344. 9:40is bearish. So, therefore, we should
  345. 9:42look for sells. And therefore, all of
  346. 9:44these areas, even if they are nice
  347. 9:45areas, they have a build-up, they have
  348. 9:46an inducement, it leads to a break of
  349. 9:48structure, price comes in, gives a break
  350. 9:50of structure, price comes into this
  351. 9:51area, gives a break of structure. How
  352. 9:53all of these are traps. And therefore,
  353. 9:54you shouldn't necessarily be looking for
  354. 9:56sells. And if you are looking for sells,
  355. 9:58they are short-lived. You are trading
  356. 9:59the trap temporarily. And then you're
  357. 10:01looking for the real intention, which is
  358. 10:02major inducements. Then you have another
  359. 10:05follow-through inducements. Every
  360. 10:06inducement, people see break of
  361. 10:08structure. So, when people see break of
  362. 10:09structure, they look for sells. When
  363. 10:11people see this break of structure, they
  364. 10:12look for sells. When people see this
  365. 10:14break of structure, they look for sells.
  366. 10:15These are all traps. With the AI coach,
  367. 10:17I want to explain what's the difference
  368. 10:19between these bearish break of
  369. 10:20structures that lead to traps versus the
  370. 10:22real inducement and how you know how to
  371. 10:24look for buys. What I want to separate
  372. 10:26is what retail traders see, probably
  373. 10:27just like you, versus the real intent of
  374. 10:29the market that you should be seeing.
  375. 10:31BOS to the downside, we are now bearish.
  376. 10:33We see that's a major inducement. Price
  377. 10:35is sweeping the relative low to grab
  378. 10:36liquidity before continuing the other
  379. 10:38way. Let's mark all of the supply zones
  380. 10:40of the bearish leg, and we see every
  381. 10:42supply zone on the leg down is a trap
  382. 10:44zone for a false reaction engineering
  383. 10:46liquidity to then induce and go the
  384. 10:48other way. These are the areas you're
  385. 10:49probably tripping up cuz you see all of
  386. 10:51the confirmations, you see the break of
  387. 10:53structures, you see the POI, you see the
  388. 10:54lower time frame confirmation. They
  389. 10:55engineer this so you believe in it, so
  390. 10:57you enter to then take your liquidity.
  391. 10:59That's why it's a trap. And this begins
  392. 11:01with understanding the framing wrong. If
  393. 11:03you don't understand the framework, one
  394. 11:05part of it, then you'll always look in
  395. 11:06the wrong areas. And it also goes back
  396. 11:07into intent and control to separate the
  397. 11:09differences. Now, the supply zone on the
  398. 11:11bearish leg, why are they all traps?
  399. 11:13This is where it gets tricky for retail
  400. 11:14traders. Let's walk through why these
  401. 11:16are traps. Because you are part of the
  402. 11:17complex pullback. You are not trading
  403. 11:19the main push because the bearish main
  404. 11:21push is not a main push. It's a bearish
  405. 11:23move to grab liquidity. So, then that
  406. 11:25framing of saying this is a bearish
  407. 11:26impulse, let me look for sells, it's
  408. 11:28wrong. Because it's a bullish market,
  409. 11:30and you're actually seeing the bearish
  410. 11:31movement as the complex pullback. That's
  411. 11:33the difference. And that's why at first
  412. 11:35you see sometimes supply zones they get
  413. 11:36smashed through and other times you see
  414. 11:37price will actually respect, give a
  415. 11:39break of structure to invite and entice
  416. 11:41in sellers. That's a trap. It comes to
  417. 11:43the areas you want, gives the bearish
  418. 11:44reaction you want to encourage you to
  419. 11:46enter instead of just wiping through the
  420. 11:48area directly, engineer traps
  421. 11:49delicately. So, how should you read it?
  422. 11:51First, the context, then identify the
  423. 11:53relative low, then when it gets swept,
  424. 11:55ask the right questions. I'm going to
  425. 11:57encourage you to just pause the screen,
  426. 11:58take screenshots so that you can fully
  427. 12:00understand what's going on. But anyhow,
  428. 12:01I'm going to actually break it down
  429. 12:02properly for you. So, what we need to
  430. 12:04understand is what I call the domino
  431. 12:05effect, which is once you've had a big
  432. 12:07catalyst in price, first is the framing.
  433. 12:09We're in a bullish market, we know that.
  434. 12:11Then when we take a structure point, we
  435. 12:12know that's a major inducement, but we
  436. 12:14can't conclude it. With this could be a
  437. 12:16bearish break of structure or this could
  438. 12:17be an inducement to go higher. This is
  439. 12:19an inflection point. We don't know at
  440. 12:21the exact moment. So, our job therefore
  441. 12:23becomes is figure it out. So, what we do
  442. 12:25then is we microscopically analyze
  443. 12:27what's going on after the major
  444. 12:28inducement. And if we start to see
  445. 12:30buyers control, buyers intent, buyers
  446. 12:32inducement, sellers trap, sellers
  447. 12:34inducement failing, there's a clear
  448. 12:35picture, buyers are in control. By the
  449. 12:37way, you've had a glimpse into our AI
  450. 12:38coach, which I mentioned is over 10
  451. 12:40million data sets to power this LLM.
  452. 12:43This is just one custom feature we built
  453. 12:45inside of WWA. We're going to hold your
  454. 12:47hand and walk you through the entire
  455. 12:48process for 6 months where you're going
  456. 12:50to have daily classes live every single
  457. 12:52day. You're going to have live streams
  458. 12:54for London and New York session and
  459. 12:55multiple times a week a Q&A session to
  460. 12:57tackle any doubts and one-on-one
  461. 12:59coaching every single week to answer
  462. 13:01your specific doubts and we look over
  463. 13:03your shoulder, look through your journal
  464. 13:04to identify your issues of what's
  465. 13:05holding you back towards getting a
  466. 13:07million dollars in funding and tens of
  467. 13:09thousands of dollars in payout like many
  468. 13:11of our students have already achieved.
  469. 13:12Now, the key point is because we do
  470. 13:13one-on-one coaching, we can't allow
  471. 13:15thousands of people because there's not
  472. 13:17enough hours in the day. So, it is by
  473. 13:19application only and the link is in the
  474. 13:20description to apply. Fill out the form
  475. 13:22so we get to know you better. And hey,
  476. 13:23even if you don't make it through the
  477. 13:24application process or we see we are not
  478. 13:26right fit for each other, no problem,
  479. 13:28because my promise for you to not waste
  480. 13:29your time is we're going to give you
  481. 13:30some resources and help you along the
  482. 13:32way so that we leave you better than we
  483. 13:33found you. So, if that's interesting for
  484. 13:35you, click the link in the description
  485. 13:36to join our WWA ecosystem, and hopefully
  486. 13:38I'll see you on a Zoom call very soon.
  487. 13:40Okay, let's get back into it. But after
  488. 13:42this major inducement, we see it could
  489. 13:44be a BOS. Why? Because we see sellers
  490. 13:47control, sellers intent, sellers
  491. 13:48inducement, sellers traps, and they all
  492. 13:50work. Then we see bearish intent. And if
  493. 13:52we get to this area, because this could
  494. 13:53also just be bearish intent. Complex
  495. 13:56pullback up. We get to the supply zone,
  496. 13:58and then we continue bearish. If at this
  497. 14:00area we see sellers control, sellers
  498. 14:02intent, sellers inducement, sellers
  499. 14:03domino effect, if we see all the right
  500. 14:05signs, then we know bearish market is in
  501. 14:07control, the sellers are in control. We
  502. 14:08look for sells. So, we have to see the
  503. 14:10intention to understand where is the
  504. 14:12trap. This is how we're going to frame
  505. 14:13the next part of our analysis, which is
  506. 14:15after this major inducement, let's focus
  507. 14:17on what happened here, and then also
  508. 14:19start to understand in this supply zone,
  509. 14:21what happened here. Who's in control?
  510. 14:22Who is the trap? What's the intention?
  511. 14:24Let's do both of that. On my favorite
  512. 14:25time frame, my intraday time frame M15.
  513. 14:28Okay, so let's play a game for the major
  514. 14:29inducements, and then also all the
  515. 14:31follow through inducements that I like
  516. 14:33to call spot the inducement to spot the
  517. 14:34control. So, we had this bias trap trend
  518. 14:37line that we spoke about previously from
  519. 14:39the demand area, and then the major
  520. 14:40inducement of structure. So, we know
  521. 14:41that this is a liquidation event, so we
  522. 14:43put a ATM, same major inducement. But
  523. 14:45when I even notice the details, I say
  524. 14:47it's not just the major inducement that
  525. 14:48we're taking out. So, it's also this
  526. 14:49trend line area that we're taking out,
  527. 14:51but also we see an accumulation here
  528. 14:52because we get multiple touches of
  529. 14:54liquidity. We get a minor inducements
  530. 14:56over here also, leading to a break of
  531. 14:58structure. Now, notice the details. Here
  532. 14:59we have a buildup of liquidity
  533. 15:01inducements that leads to the break of
  534. 15:03structure. Shouldn't this be an area to
  535. 15:04sell from? No, it's a trap. Why? Because
  536. 15:07after major inducements, a medium
  537. 15:09inducement or a minor inducement is not
  538. 15:11going to hold, especially the first one.
  539. 15:13It's simply who's stronger? This major
  540. 15:15inducement with all the liquidity it
  541. 15:16took, or this very low down in discount
  542. 15:19in the buyers zone, a small medium
  543. 15:21inducement. Who's stronger? Naturally,
  544. 15:23the major inducement in discounts. But
  545. 15:24then, after that, we see sellers
  546. 15:26attempts failing. What I like to notice
  547. 15:28is we have this build-up of equal highs.
  548. 15:29We have a sweep, price comes into it,
  549. 15:31and breaks it out. So, we see that the
  550. 15:33sellers that are inducing, they're not
  551. 15:35working out. So, that's already an early
  552. 15:36sign. And then, I see this build-up of
  553. 15:38liquidities here, this inducement that
  554. 15:40wipes out the area. Wipes out these
  555. 15:42equal highs, inducements, bearish break
  556. 15:43of structure. We take out the zone
  557. 15:45aggressively. So, I start to understand,
  558. 15:47okay, very clearly, this is a smart
  559. 15:48money trap. It's a trap zone. And the
  560. 15:50real inducements are going to be here.
  561. 15:52Therefore, very clear for me, put an ATM
  562. 15:54here because this is the inducement of
  563. 15:55control. And notice how every time we
  564. 15:57have an inducement, it leads to a break
  565. 15:59of structure. Then, we had this lower
  566. 16:00high that made these lower lows. We have
  567. 16:02a breakout. Where does that breakout
  568. 16:04happen? That breakout happens after we
  569. 16:05get the major inducements. The next one
  570. 16:07is we have another main push bullish.
  571. 16:10Like here, we had this inducement that
  572. 16:11leads to a break of structure, taking
  573. 16:13out the previous high. When does that
  574. 16:14happen? After the inducement. And it
  575. 16:16happens again and again. We look at it
  576. 16:17over here, and we say, "Okay, there's a
  577. 16:19build-up of liquidity here." And then,
  578. 16:21then we have this last lower high that
  579. 16:22made this lower low that leads to a
  580. 16:24break of structure. Why does that
  581. 16:25happen? Well, very nicely, we had a
  582. 16:27inducement down here that took the
  583. 16:29liquidity of Asia low into this area or
  584. 16:31block, point of interest. Notice, once
  585. 16:33again, you get a build-up of liquidity
  586. 16:35here before you get the follow-through
  587. 16:36and the high made, leading to a nice
  588. 16:38break of structure. Once again, who did
  589. 16:40it? We had an inducement first. So, let
  590. 16:42me put that out there. Build-up,
  591. 16:43inducements, ATM dropped for liquidity,
  592. 16:45main push. Happens again and again. And
  593. 16:48all the details you start to see, if you
  594. 16:50have a sharp eye for it, is you get a
  595. 16:51build-up of liquidity here, you get a
  596. 16:53sweep, you get a bearish break of
  597. 16:55structure. We get the London key time
  598. 16:57window. Sellers want to get in. That
  599. 16:59fails. Why? Because this is a smart
  600. 17:01money trap. So, I can start to see from
  601. 17:02many perspectives, as you train your
  602. 17:04eye, you will start to see this trend
  603. 17:05line failing, sellers weakness, this
  604. 17:07smart money sweep zone failing, that
  605. 17:09sellers weakness. And then, these
  606. 17:10inducements showing buyer strength. And
  607. 17:12that's exactly how you need to read
  608. 17:13price. I need to say, "This is a smart
  609. 17:15money trap. This is sellers weakness."
  610. 17:17Same over here, by the way, we got
  611. 17:19another smart money trap block that
  612. 17:20comes into it. Why is this a smart money
  613. 17:22trap block? Well, we know the higher
  614. 17:24high is not supply. You get a build-up
  615. 17:25of liquidity, you get a sweep, you get a
  616. 17:27bearish break of structure, you get a
  617. 17:28bearish trend line, you get all of these
  618. 17:29highs, price comes into it, sweeps into
  619. 17:32the zone, takes the liquidity here,
  620. 17:33gives a bearish reaction, and then
  621. 17:35doesn't continue bearish, it fails. Why
  622. 17:36is this happening? Well, if we read into
  623. 17:38it, we see we had liquidity in this
  624. 17:40area, sweep into demand area, you get an
  625. 17:42inducement into demand area, therefore
  626. 17:44you have another ATM. So, we know that
  627. 17:45this is higher high. Higher highs are
  628. 17:47not supply zones. Once you have a
  629. 17:48bullish push on a higher high, you
  630. 17:50expect a new bullish push to continue.
  631. 17:52So, we see smart money trap and sellers
  632. 17:53failing, trend lines failing, breaks of
  633. 17:55structure failing, and every time you
  634. 17:56get a break of structure, it's actually
  635. 17:58an inducement, and every time you get
  636. 18:00that inducement, what do you happen
  637. 18:01next? You get a main push taking out the
  638. 18:03sellers. This is clear for me to see
  639. 18:04who's in control. If you go down to M1,
  640. 18:06you see it even more, even more clearly,
  641. 18:08even more often. I'm just showing you
  642. 18:10the M15 intraday. So, then you are
  643. 18:12served to take trades only when you get
  644. 18:14the trap day, which is these
  645. 18:15inducements, because right after that
  646. 18:16you get a clear impulse up. After the
  647. 18:18inducement of the day, you get a move
  648. 18:20up. After this inducement of the day,
  649. 18:21you get a move up. Now, all of them are
  650. 18:23tradeable, but the points is to find the
  651. 18:25trap of the day, you find the inducement
  652. 18:26of the day, you find the trade of the
  653. 18:27day, and you don't get lost and
  654. 18:29disorientated and walk into these traps
  655. 18:31by selling over here, which is
  656. 18:32ridiculous, or selling on this London
  657. 18:34open because you had a sweep of Asia
  658. 18:36high, a smart money order block
  659. 18:37imbalance break of structure. It's trap
  660. 18:39after trap. Even here, this is a clear
  661. 18:41trap. You might see it's a decisional
  662. 18:43point of interest. We had a build-up of
  663. 18:45Asia high sweep, break of structure. You
  664. 18:47come into this area, oh my god, it's New
  665. 18:48York key time window, trapped. Walk away
  666. 18:50from the traps, understand the traps,
  667. 18:52use them to your advantage, and
  668. 18:54understand the move of the day. Major
  669. 18:55inducement, move. Medium inducement,
  670. 18:57move. Medium inducement, move. Minor
  671. 18:59inducement, move. Medium inducement,
  672. 19:01move. Every single day, all day long. We
  673. 19:03move across, what do we see once again?
  674. 19:05You see a clear build-up of liquidity.
  675. 19:07You come into yesterday's trap area,
  676. 19:09trap reaction, pullback before the
  677. 19:11break. This is known as a supply to
  678. 19:12demand decisional and therefore you see
  679. 19:14the inducement of the day is down here.
  680. 19:16You drop an ATM because it's a confirmed
  681. 19:17one. It happens in the key time window
  682. 19:19like it often does leading to the trade
  683. 19:21of the day very, very nicely. Every
  684. 19:23single day walk away from the trap, walk
  685. 19:25away from and where are the traps? Where
  686. 19:27you have a trend line that is failing.
  687. 19:29You have a support level that is
  688. 19:30failing. These are traps. And once
  689. 19:32again, when you see these equal highs,
  690. 19:33you see this sweep, you see the bearish
  691. 19:35reaction, price is going to come in and
  692. 19:37do the same thing again. It's going to
  693. 19:38take liquidity over here. Sweep, give
  694. 19:41the main push and leaves a very nice
  695. 19:43smart money trap. Why do we leave a
  696. 19:45smart money trap? Well, you got to
  697. 19:46understand what is a smart money trap,
  698. 19:48why they exist, how they look like. And
  699. 19:49then from yesterday's inducement zone
  700. 19:51that led to the main push, notice how
  701. 19:53fast and direct they are. If you're in a
  702. 19:55trade like this, it hits your 1:3 and
  703. 19:571:10 risk reward in usually an hour, the
  704. 20:001:3 in usually minutes. You break even
  705. 20:01in minutes and it's effortless because
  706. 20:04it's tap and go. It doesn't hang around
  707. 20:05your entry for days. It doesn't go in
  708. 20:07your direction only to retrace 90%
  709. 20:09before going out you out. Stressful
  710. 20:11trading like that. When you trade the
  711. 20:12inducement of the day, you have clear
  712. 20:13confirmations, you know when to be
  713. 20:15trading, you know where to be trading,
  714. 20:17you know the confirmations and you avoid
  715. 20:19traps. And just like this inducement of
  716. 20:21the day yesterday, it leads to the trade
  717. 20:23of the next day. And we put an ATM
  718. 20:24there. Why? Because we took into the
  719. 20:26demand area of yesterday that led to the
  720. 20:28impulse. We had a smart money trap. We
  721. 20:30had all of this trend line failure and
  722. 20:31notice all these details because people
  723. 20:33that don't nail context, don't nail the
  724. 20:35analysis, they're going to walk into
  725. 20:36clear traps like "Oh, this is not a
  726. 20:38sweep and a break of structure. This is
  727. 20:40not a point of interest where you see
  728. 20:41build up, inducement sweep, break of
  729. 20:43structure, break of structure lower,
  730. 20:45start to sell in this area." That's a
  731. 20:47trap once again. Therefore, these all
  732. 20:48became trap areas. This trend line was a
  733. 20:51clear trap for everybody to fall into.
  734. 20:53And notice how in this key time window,
  735. 20:54all of these areas of smart money trap
  736. 20:56supply zone trap, all of these areas is
  737. 20:58faked out because this inducement is
  738. 21:00driving price. And like we have every
  739. 21:02single time, like it was yesterday and
  740. 21:04all the days before, once you find the
  741. 21:05inducement of the day, the trap of the
  742. 21:06day, the entry of the day, you have a
  743. 21:08effortless, fast trade in your
  744. 21:10direction. Immediate TPs, basically
  745. 21:12effortless trading. You just need the
  746. 21:13confirmations. And we can do this all
  747. 21:15day long, every single day. This is
  748. 21:17exercise I want for you to figure out
  749. 21:19yourself, because once you see it, you
  750. 21:20cannot unsee it. Inducements run the
  751. 21:22show, they run the context, and your job
  752. 21:24is to start to read it like a storybook,
  753. 21:26and then build confirmations around it.
  754. 21:27Or watch all the videos on this channel
  755. 21:29where I give you strategies, playbooks,
  756. 21:31step-by-step examples of case studies of
  757. 21:33trades. But the main thing for you to be
  758. 21:35profitable is remember that a restricted
  759. 21:37trader is a profitable trader.

About this transcript

This page contains the full transcript of Why Every Break Of Structure You Trade Is A Trap (Full Guide) by Waqar Asim, generated from the public captions YouTube serves with the video. The transcript has 5,336 words across 759 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to choose a caption track available on the video.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, caption language selection, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.