Why Every Break Of Structure You Trade Is A Trap (Full Guide) — Transcript
Full transcript
- 0:00Do you believe that the markets are
- 0:01rigged?
- 0:02>> Well, I've spoken to traders that say
- 0:03that's conspiracy theories. The market
- 0:05is too big, too much liquidity, no one
- 0:07has enough money to move the market to
- 0:08get your little stop loss. And on the
- 0:10other side, I've spoken to some of the
- 0:11greatest traders in the world, people
- 0:12that are managing hundreds of millions
- 0:14of dollars, or real market makers, and
- 0:16they say, "Hey, that's not a conspiracy
- 0:17theory, but it's also not personal.
- 0:19Market mechanics simply means that you
- 0:21need liquidity for the market to move.
- 0:23For every buyer that exists, you need a
- 0:25counterpart, a seller. And therefore, if
- 0:27you have a large buyer with billions of
- 0:29dollars to transact, and there isn't
- 0:31enough sellers, well, then you got to
- 0:32create the environment to be paired off.
- 0:35This is just a market auction, market
- 0:37fluidity, and I'm going to share with
- 0:38you in this video exactly why on an
- 0:40intraday perspective, on the lower time
- 0:42frames, the most important thing is
- 0:44going to be liquidity, but more
- 0:45important is going to be traps. I'm
- 0:47going to explain to you the why this
- 0:49exists. I'm going to show you exactly
- 0:51how to identify it, and I'm going to
- 0:52show you how it's on every single asset
- 0:54class, every single day, multiple times
- 0:57a day, and before every major move in
- 0:59the market, the move of the day, the
- 1:01trade of the day, before that, every
- 1:03single time there will be the trap of
- 1:05the day. So, by the end of this video,
- 1:06you're never going to take a stop loss
- 1:08hunt ever again. You're never going to
- 1:10fall victim of a market manipulation, or
- 1:12a market trap, and most importantly, you
- 1:14are going to be on the right side.
- 1:16Okay, so what we're going to do is a
- 1:17quick top-down analysis. We're on the
- 1:19daily time frame. I'm going to walk you
- 1:20through the framing, the correct way to
- 1:22frame your top-down analysis, not the
- 1:23full laborious process that people spend
- 1:25hours doing, trying to focus on every
- 1:27little detail. I'm going to show you how
- 1:28you can do it in 30 seconds, and the
- 1:30most relevant parts of it, and we're
- 1:31going to do it in packages. So, our
- 1:33daily time frame is one package. We
- 1:34don't need to go higher. The next
- 1:35package is going to be 4-hour and 1-hour
- 1:37time frame. That's our middle time
- 1:38frame. And then we're going to go to
- 1:39M30, M15 as our lower package. This is
- 1:42our intraday time frame, and then M1 for
- 1:44entries. These are the correct time
- 1:45frames for a top-down analysis. I'm
- 1:47going to show you why it's most
- 1:48relevant. And then all these boxes and
- 1:50lines you see on the screen, I'm going
- 1:51to show you how you can have a clear
- 1:52code, so that you know how to do a
- 1:54top-down analysis in a
- 1:56clean way, so that you don't need to
- 1:57keep jumping between time frames to
- 1:59remind yourself of a piece of
- 2:00information. That's a waste of time.
- 2:01It's inefficient. So, let's do a
- 2:02top-down analysis correctly together.
- 2:04Okay, so starting off daily time frame,
- 2:06we had a previous high in the market
- 2:08that made a higher low that goes on to
- 2:10make a new higher high. Very simple.
- 2:11Bullish market structure. The key point
- 2:13here is this was a previous ceiling in
- 2:15price that has now been broken. That is
- 2:17the definition of breaking a ceiling and
- 2:19finding new territory in price is the
- 2:22definition of a main push. So, when I
- 2:23found a main push on the daily time
- 2:25frame, the biggest one, I put a green
- 2:27arrow here so we know exactly what it's
- 2:28for. What we expect in a bullish market
- 2:30when a new main push has been found is
- 2:31replication. So, we expect price to
- 2:33continue to break the ceiling like so.
- 2:36We make our daily external high of the
- 2:38range, our daily external low of the
- 2:40range, and we say price needs to be
- 2:41broken either the high or the low of the
- 2:43range. Makes sense if we are bullish to
- 2:44continue bullish and break this ceiling
- 2:47at some point. Now, that could take
- 2:48months to happen. So, it's not my focus,
- 2:50which is why top-down analysis, in my
- 2:52opinion, is a bit of a waste of time
- 2:53because if we're not in the relevant
- 2:54areas, we're waiting for something to
- 2:56play out for months, and how is that
- 2:57relevant for today's New York session?
- 2:59That's the question. So, what I do here
- 3:01is quickly three things. Top-down
- 3:02analysis is find the main push and mark
- 3:04out its range, and know I'm going to
- 3:05continue bullish most likely. Second
- 3:07step is point of interest. There's only
- 3:09going to be two. It's going to be
- 3:10decisional and extreme. Your decisional
- 3:12is very simple. It's the area that broke
- 3:14structure like so. The last pullback you
- 3:16had before you broke structure. Who
- 3:18broke the structure? That's your
- 3:19decisional area, which is going to be
- 3:21this area right here. And see how we had
- 3:23a buyers reaction before it failed. So,
- 3:25we saw the decisional failed, and we
- 3:27ended up coming to the extreme, the
- 3:28origination point, and we came into it.
- 3:30We had a early tap, gave a break of
- 3:32structure to invite in buyers because
- 3:34they'll be loading up on buys in this
- 3:35area looking for bullish to continue.
- 3:38That didn't happen, and we actually got
- 3:39something really great, which is a major
- 3:42inducement down here of a daily time
- 3:44frame structure point tapping into our
- 3:47demand area. So, when I see a major
- 3:49inducement, this is fuel, which is why
- 3:50immediately after we see a break of
- 3:52structure, the last lower high that made
- 3:54the lower low, we have a higher high.
- 3:55And now we can expect price to continue
- 3:57towards our targets, intraday target,
- 3:59the swing targets, and the long-term
- 4:01targets all going to be met cuz we've
- 4:03got alignments now with a catalyst that
- 4:05is liquidity. So we need to therefore
- 4:06understand the trap that goes on the
- 4:07bigger picture, but also the traps that
- 4:09go every single day. I'm going to show
- 4:10you how to read it like a storybook.
- 4:12It's so much fun. So therefore, my
- 4:13top-down analysis is quickly a glance to
- 4:15find three things. Where's the main push
- 4:17to identify trend? Where's the POIs?
- 4:19Where's the liquidity? And I connect it
- 4:21together to understand intent. Once I've
- 4:22done that, 30-second glance, I go down
- 4:24to the next package, which is my 4-hour,
- 4:261-hour. By the way, if you want to have
- 4:27specific notes of FAQs from the AI
- 4:29coach, diagrams, case studies, examples,
- 4:31trade examples beyond just the general
- 4:33map, which is market structure, POIs,
- 4:35trend analysis, these are the basics,
- 4:37but you want to learn about the engine
- 4:39that powers it through manipulations,
- 4:40intense control, intraday dynamics,
- 4:42momentum, and clear traps on
- 4:44intersession perspective, then I
- 4:45encourage you to click the link in the
- 4:47description to download today's episode
- 4:49companion absolutely for free. We do
- 4:50this every single week so that you take
- 4:52more out of each video, and then you
- 4:53have resources to look back upon so that
- 4:56you don't need to keep watching these
- 4:57videos. You have everything in one
- 4:58place, basically like a textbook when
- 5:00you connect together all of these
- 5:01YouTube videos and all the sessions, you
- 5:02will have a folder of resources with
- 5:05everything that you need to study to
- 5:06become a profitable trader. That's link
- 5:08below, grab it for free, and let's get
- 5:10back into the video. Now, what I like to
- 5:11do is start at the top of the main push,
- 5:13the highest point in the market on that
- 5:15daily impulse, you remember. So we had
- 5:16that huge daily push from the low all
- 5:18the way to the high. I start at the top
- 5:20because I know that previous portion was
- 5:21a push up. That was one phase. The next
- 5:24phase is going to be a retracement.
- 5:25After an impulse, you have a
- 5:26retracement. How deep it is, how long
- 5:28it's going to take, all of those details
- 5:29yet to be confirmed, but let's read it
- 5:31like a book. So what I like to do is I
- 5:33put these red boxes to help you
- 5:34understand it, but I need to understand
- 5:36pivot points, the structure. And this is
- 5:38how I do it. Now, I'm not going to do
- 5:39this every time, but I'm helping you
- 5:40understand what we're looking for. And
- 5:42we're looking for after the high in the
- 5:43market, we look for a retracement. That
- 5:46retracement could still continue
- 5:47bullish. We're in a bullish market,
- 5:48right? Like we were doing previously, we
- 5:50could continue bullish. But when I see
- 5:52this area fails to make a higher high,
- 5:54so we respect the ceiling, and it goes
- 5:57on to break it and make a new low,
- 5:59then I see this conversion, which means
- 6:01I could have seen market do this
- 6:03impulse, retracement, continuation,
- 6:05bullish. But what I in fact see is we
- 6:07had that impulse, then we have a
- 6:09retracement, could go to make bullish.
- 6:11We have the bullish signs, that fails
- 6:13and makes a lower low, breaking the last
- 6:15low. When I've seen these two legs, one
- 6:18leg, two leg of bearish, I know the
- 6:20complex pullback has begun. The
- 6:21retracement has begun, and we have a
- 6:23clear objective now. And what we're
- 6:24going to do is we're going to quickly
- 6:25come to my AI coach. So I've typed out
- 6:27my question into the AI coach. What is a
- 6:29market retracement and complex pullback
- 6:31that comes after a main push, putting
- 6:33the time frames and details, and how do
- 6:34I identify and read it, and what are the
- 6:35steps and signs? Let's send it in. So
- 6:37while this loads up an answer, let me
- 6:39tell you the AI coach is something that
- 6:40we created after every single YouTube
- 6:43video that I made, after every single
- 6:44private community call that I've done
- 6:46for VIP members going back a years,
- 6:48hundreds of hours, plus every trade that
- 6:50I've taken, plus training that I did
- 6:52with it on everything theoretical, all
- 6:54the doubts, all the questions, all the
- 6:56nuances, all the scenarios. No joke, we
- 6:58loaded up over 10 million data sets from
- 7:01all the transcripts, all the trades, all
- 7:03the journals, all my broker statements,
- 7:04everything connected to empower one LLM.
- 7:07So as this loads up, you can see it's
- 7:08thorough and it's in detail, and it's
- 7:10powered by everything that I know. It's
- 7:12like having me in your pocket, and it
- 7:13gives everything in organized way. So
- 7:15what is the textbook definition that I
- 7:16would give for how to read a complex
- 7:19pullback? So a complex pullback after
- 7:204-hour main push, that's exactly what we
- 7:22have. So this is the area we've had a
- 7:23bullish impulse, and I want to start
- 7:25read the signs of this complex pullback.
- 7:26After the market makes a main push from
- 7:28point A to point B, creating a new
- 7:29higher high, the market doesn't just
- 7:31keep shooting up forever. It needs to
- 7:32retrace. The retracement is what we call
- 7:34the complex pullback. And obviously
- 7:35momentum comes into it fast and
- 7:37aggressive as the main push. These are
- 7:38going to be slower, choppier, builds
- 7:40liquidity and traps, cuz that's the
- 7:41objective. How do I identify it?
- 7:43Identify the main push, that's what we
- 7:44already did. Bullish impulse, new
- 7:45territory, new higher high in the
- 7:47market. Watch for the internal break of
- 7:48structure. After the main push
- 7:49completes, look for internal break of
- 7:51structure that happens. That's what we
- 7:52did. And then you read the internal
- 7:54structure of the pullback. And here's
- 7:55where it gets interesting, where we
- 7:56start to see price making lower highs
- 7:58and lower lows, as opposed to continuing
- 8:00making the higher highs. So, that was
- 8:01the detail that confirms to us that
- 8:03we've started the complex pullback. And
- 8:04then the next step, which we're going to
- 8:05do together, is identify the targets,
- 8:08the demand levels, where price the
- 8:10pullback could be headed. This could be
- 8:11towards POIs or towards liquidity pools.
- 8:14And that's what we call the efficiency
- 8:15of the pullback. We need to understand,
- 8:17is this a relevant demand area? Do we
- 8:18qualify it to find the real efficiency
- 8:20of the pullback? And then we know the
- 8:21story and the objective that price is
- 8:23going to be doing. And I'm going to
- 8:24scroll through this quickly, you can
- 8:25take a look in your own time. And that's
- 8:27what we need to focus on, because that's
- 8:28when we see the real intention about
- 8:29reading control. And when you see a
- 8:31push, the main push that has the
- 8:33institutional momentum behind it, then
- 8:35you know exactly where you should be
- 8:36trading, what direction you should be
- 8:37trading, where you should be trading
- 8:38from. And you look for the confirmation
- 8:40signs, which will also be traps and
- 8:42liquidity. Control is reading these all
- 8:43together in real time. You see price
- 8:45arrive to a demand zone, and that leads
- 8:47to BOS, and that demand zone has an
- 8:48inducement above it. Price has swept
- 8:50Asia low before it arriving at the key
- 8:52time window. That's just not a POI.
- 8:54That's a powered zone where everything
- 8:57aligns. You understand the cause, and
- 8:59you understand the effect. Everything
- 9:00connected. And here's a table for you
- 9:02just if you want to screenshot it and
- 9:03look at it more practically. So, what
- 9:04I'm going to focus on is exactly this
- 9:06price action part. After the major
- 9:07inducement that we're seeing, and we're
- 9:09looking for buys now, because we
- 9:10understand control and intent. And these
- 9:12sells become traps now. Let me show you
- 9:14exactly why that works. Okay, so the
- 9:15next question I'm going to ask is this
- 9:17diagram. I'm going to put it into our AI
- 9:19coach, we can upload images. And I want
- 9:21to explain exactly how, in this scenario
- 9:23that we have in our market situation,
- 9:25where you have a bullish market, and
- 9:26then you get a major inducement, like
- 9:28here. You get the major inducement. Some
- 9:30people are going to see bearish break of
- 9:32structure. They're going to see, "Oh, we
- 9:33had a bearish break of structure. This
- 9:34was the last higher low that made a
- 9:36higher high. We've now switched
- 9:38and we can say we've taken all this
- 9:39liquidity. This is the inducement. This
- 9:40is bearish. So, therefore, we should
- 9:42look for sells. And therefore, all of
- 9:44these areas, even if they are nice
- 9:45areas, they have a build-up, they have
- 9:46an inducement, it leads to a break of
- 9:48structure, price comes in, gives a break
- 9:50of structure, price comes into this
- 9:51area, gives a break of structure. How
- 9:53all of these are traps. And therefore,
- 9:54you shouldn't necessarily be looking for
- 9:56sells. And if you are looking for sells,
- 9:58they are short-lived. You are trading
- 9:59the trap temporarily. And then you're
- 10:01looking for the real intention, which is
- 10:02major inducements. Then you have another
- 10:05follow-through inducements. Every
- 10:06inducement, people see break of
- 10:08structure. So, when people see break of
- 10:09structure, they look for sells. When
- 10:11people see this break of structure, they
- 10:12look for sells. When people see this
- 10:14break of structure, they look for sells.
- 10:15These are all traps. With the AI coach,
- 10:17I want to explain what's the difference
- 10:19between these bearish break of
- 10:20structures that lead to traps versus the
- 10:22real inducement and how you know how to
- 10:24look for buys. What I want to separate
- 10:26is what retail traders see, probably
- 10:27just like you, versus the real intent of
- 10:29the market that you should be seeing.
- 10:31BOS to the downside, we are now bearish.
- 10:33We see that's a major inducement. Price
- 10:35is sweeping the relative low to grab
- 10:36liquidity before continuing the other
- 10:38way. Let's mark all of the supply zones
- 10:40of the bearish leg, and we see every
- 10:42supply zone on the leg down is a trap
- 10:44zone for a false reaction engineering
- 10:46liquidity to then induce and go the
- 10:48other way. These are the areas you're
- 10:49probably tripping up cuz you see all of
- 10:51the confirmations, you see the break of
- 10:53structures, you see the POI, you see the
- 10:54lower time frame confirmation. They
- 10:55engineer this so you believe in it, so
- 10:57you enter to then take your liquidity.
- 10:59That's why it's a trap. And this begins
- 11:01with understanding the framing wrong. If
- 11:03you don't understand the framework, one
- 11:05part of it, then you'll always look in
- 11:06the wrong areas. And it also goes back
- 11:07into intent and control to separate the
- 11:09differences. Now, the supply zone on the
- 11:11bearish leg, why are they all traps?
- 11:13This is where it gets tricky for retail
- 11:14traders. Let's walk through why these
- 11:16are traps. Because you are part of the
- 11:17complex pullback. You are not trading
- 11:19the main push because the bearish main
- 11:21push is not a main push. It's a bearish
- 11:23move to grab liquidity. So, then that
- 11:25framing of saying this is a bearish
- 11:26impulse, let me look for sells, it's
- 11:28wrong. Because it's a bullish market,
- 11:30and you're actually seeing the bearish
- 11:31movement as the complex pullback. That's
- 11:33the difference. And that's why at first
- 11:35you see sometimes supply zones they get
- 11:36smashed through and other times you see
- 11:37price will actually respect, give a
- 11:39break of structure to invite and entice
- 11:41in sellers. That's a trap. It comes to
- 11:43the areas you want, gives the bearish
- 11:44reaction you want to encourage you to
- 11:46enter instead of just wiping through the
- 11:48area directly, engineer traps
- 11:49delicately. So, how should you read it?
- 11:51First, the context, then identify the
- 11:53relative low, then when it gets swept,
- 11:55ask the right questions. I'm going to
- 11:57encourage you to just pause the screen,
- 11:58take screenshots so that you can fully
- 12:00understand what's going on. But anyhow,
- 12:01I'm going to actually break it down
- 12:02properly for you. So, what we need to
- 12:04understand is what I call the domino
- 12:05effect, which is once you've had a big
- 12:07catalyst in price, first is the framing.
- 12:09We're in a bullish market, we know that.
- 12:11Then when we take a structure point, we
- 12:12know that's a major inducement, but we
- 12:14can't conclude it. With this could be a
- 12:16bearish break of structure or this could
- 12:17be an inducement to go higher. This is
- 12:19an inflection point. We don't know at
- 12:21the exact moment. So, our job therefore
- 12:23becomes is figure it out. So, what we do
- 12:25then is we microscopically analyze
- 12:27what's going on after the major
- 12:28inducement. And if we start to see
- 12:30buyers control, buyers intent, buyers
- 12:32inducement, sellers trap, sellers
- 12:34inducement failing, there's a clear
- 12:35picture, buyers are in control. By the
- 12:37way, you've had a glimpse into our AI
- 12:38coach, which I mentioned is over 10
- 12:40million data sets to power this LLM.
- 12:43This is just one custom feature we built
- 12:45inside of WWA. We're going to hold your
- 12:47hand and walk you through the entire
- 12:48process for 6 months where you're going
- 12:50to have daily classes live every single
- 12:52day. You're going to have live streams
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- 12:55multiple times a week a Q&A session to
- 12:57tackle any doubts and one-on-one
- 12:59coaching every single week to answer
- 13:01your specific doubts and we look over
- 13:03your shoulder, look through your journal
- 13:04to identify your issues of what's
- 13:05holding you back towards getting a
- 13:07million dollars in funding and tens of
- 13:09thousands of dollars in payout like many
- 13:11of our students have already achieved.
- 13:12Now, the key point is because we do
- 13:13one-on-one coaching, we can't allow
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- 13:38I'll see you on a Zoom call very soon.
- 13:40Okay, let's get back into it. But after
- 13:42this major inducement, we see it could
- 13:44be a BOS. Why? Because we see sellers
- 13:47control, sellers intent, sellers
- 13:48inducement, sellers traps, and they all
- 13:50work. Then we see bearish intent. And if
- 13:52we get to this area, because this could
- 13:53also just be bearish intent. Complex
- 13:56pullback up. We get to the supply zone,
- 13:58and then we continue bearish. If at this
- 14:00area we see sellers control, sellers
- 14:02intent, sellers inducement, sellers
- 14:03domino effect, if we see all the right
- 14:05signs, then we know bearish market is in
- 14:07control, the sellers are in control. We
- 14:08look for sells. So, we have to see the
- 14:10intention to understand where is the
- 14:12trap. This is how we're going to frame
- 14:13the next part of our analysis, which is
- 14:15after this major inducement, let's focus
- 14:17on what happened here, and then also
- 14:19start to understand in this supply zone,
- 14:21what happened here. Who's in control?
- 14:22Who is the trap? What's the intention?
- 14:24Let's do both of that. On my favorite
- 14:25time frame, my intraday time frame M15.
- 14:28Okay, so let's play a game for the major
- 14:29inducements, and then also all the
- 14:31follow through inducements that I like
- 14:33to call spot the inducement to spot the
- 14:34control. So, we had this bias trap trend
- 14:37line that we spoke about previously from
- 14:39the demand area, and then the major
- 14:40inducement of structure. So, we know
- 14:41that this is a liquidation event, so we
- 14:43put a ATM, same major inducement. But
- 14:45when I even notice the details, I say
- 14:47it's not just the major inducement that
- 14:48we're taking out. So, it's also this
- 14:49trend line area that we're taking out,
- 14:51but also we see an accumulation here
- 14:52because we get multiple touches of
- 14:54liquidity. We get a minor inducements
- 14:56over here also, leading to a break of
- 14:58structure. Now, notice the details. Here
- 14:59we have a buildup of liquidity
- 15:01inducements that leads to the break of
- 15:03structure. Shouldn't this be an area to
- 15:04sell from? No, it's a trap. Why? Because
- 15:07after major inducements, a medium
- 15:09inducement or a minor inducement is not
- 15:11going to hold, especially the first one.
- 15:13It's simply who's stronger? This major
- 15:15inducement with all the liquidity it
- 15:16took, or this very low down in discount
- 15:19in the buyers zone, a small medium
- 15:21inducement. Who's stronger? Naturally,
- 15:23the major inducement in discounts. But
- 15:24then, after that, we see sellers
- 15:26attempts failing. What I like to notice
- 15:28is we have this build-up of equal highs.
- 15:29We have a sweep, price comes into it,
- 15:31and breaks it out. So, we see that the
- 15:33sellers that are inducing, they're not
- 15:35working out. So, that's already an early
- 15:36sign. And then, I see this build-up of
- 15:38liquidities here, this inducement that
- 15:40wipes out the area. Wipes out these
- 15:42equal highs, inducements, bearish break
- 15:43of structure. We take out the zone
- 15:45aggressively. So, I start to understand,
- 15:47okay, very clearly, this is a smart
- 15:48money trap. It's a trap zone. And the
- 15:50real inducements are going to be here.
- 15:52Therefore, very clear for me, put an ATM
- 15:54here because this is the inducement of
- 15:55control. And notice how every time we
- 15:57have an inducement, it leads to a break
- 15:59of structure. Then, we had this lower
- 16:00high that made these lower lows. We have
- 16:02a breakout. Where does that breakout
- 16:04happen? That breakout happens after we
- 16:05get the major inducements. The next one
- 16:07is we have another main push bullish.
- 16:10Like here, we had this inducement that
- 16:11leads to a break of structure, taking
- 16:13out the previous high. When does that
- 16:14happen? After the inducement. And it
- 16:16happens again and again. We look at it
- 16:17over here, and we say, "Okay, there's a
- 16:19build-up of liquidity here." And then,
- 16:21then we have this last lower high that
- 16:22made this lower low that leads to a
- 16:24break of structure. Why does that
- 16:25happen? Well, very nicely, we had a
- 16:27inducement down here that took the
- 16:29liquidity of Asia low into this area or
- 16:31block, point of interest. Notice, once
- 16:33again, you get a build-up of liquidity
- 16:35here before you get the follow-through
- 16:36and the high made, leading to a nice
- 16:38break of structure. Once again, who did
- 16:40it? We had an inducement first. So, let
- 16:42me put that out there. Build-up,
- 16:43inducements, ATM dropped for liquidity,
- 16:45main push. Happens again and again. And
- 16:48all the details you start to see, if you
- 16:50have a sharp eye for it, is you get a
- 16:51build-up of liquidity here, you get a
- 16:53sweep, you get a bearish break of
- 16:55structure. We get the London key time
- 16:57window. Sellers want to get in. That
- 16:59fails. Why? Because this is a smart
- 17:01money trap. So, I can start to see from
- 17:02many perspectives, as you train your
- 17:04eye, you will start to see this trend
- 17:05line failing, sellers weakness, this
- 17:07smart money sweep zone failing, that
- 17:09sellers weakness. And then, these
- 17:10inducements showing buyer strength. And
- 17:12that's exactly how you need to read
- 17:13price. I need to say, "This is a smart
- 17:15money trap. This is sellers weakness."
- 17:17Same over here, by the way, we got
- 17:19another smart money trap block that
- 17:20comes into it. Why is this a smart money
- 17:22trap block? Well, we know the higher
- 17:24high is not supply. You get a build-up
- 17:25of liquidity, you get a sweep, you get a
- 17:27bearish break of structure, you get a
- 17:28bearish trend line, you get all of these
- 17:29highs, price comes into it, sweeps into
- 17:32the zone, takes the liquidity here,
- 17:33gives a bearish reaction, and then
- 17:35doesn't continue bearish, it fails. Why
- 17:36is this happening? Well, if we read into
- 17:38it, we see we had liquidity in this
- 17:40area, sweep into demand area, you get an
- 17:42inducement into demand area, therefore
- 17:44you have another ATM. So, we know that
- 17:45this is higher high. Higher highs are
- 17:47not supply zones. Once you have a
- 17:48bullish push on a higher high, you
- 17:50expect a new bullish push to continue.
- 17:52So, we see smart money trap and sellers
- 17:53failing, trend lines failing, breaks of
- 17:55structure failing, and every time you
- 17:56get a break of structure, it's actually
- 17:58an inducement, and every time you get
- 18:00that inducement, what do you happen
- 18:01next? You get a main push taking out the
- 18:03sellers. This is clear for me to see
- 18:04who's in control. If you go down to M1,
- 18:06you see it even more, even more clearly,
- 18:08even more often. I'm just showing you
- 18:10the M15 intraday. So, then you are
- 18:12served to take trades only when you get
- 18:14the trap day, which is these
- 18:15inducements, because right after that
- 18:16you get a clear impulse up. After the
- 18:18inducement of the day, you get a move
- 18:20up. After this inducement of the day,
- 18:21you get a move up. Now, all of them are
- 18:23tradeable, but the points is to find the
- 18:25trap of the day, you find the inducement
- 18:26of the day, you find the trade of the
- 18:27day, and you don't get lost and
- 18:29disorientated and walk into these traps
- 18:31by selling over here, which is
- 18:32ridiculous, or selling on this London
- 18:34open because you had a sweep of Asia
- 18:36high, a smart money order block
- 18:37imbalance break of structure. It's trap
- 18:39after trap. Even here, this is a clear
- 18:41trap. You might see it's a decisional
- 18:43point of interest. We had a build-up of
- 18:45Asia high sweep, break of structure. You
- 18:47come into this area, oh my god, it's New
- 18:48York key time window, trapped. Walk away
- 18:50from the traps, understand the traps,
- 18:52use them to your advantage, and
- 18:54understand the move of the day. Major
- 18:55inducement, move. Medium inducement,
- 18:57move. Medium inducement, move. Minor
- 18:59inducement, move. Medium inducement,
- 19:01move. Every single day, all day long. We
- 19:03move across, what do we see once again?
- 19:05You see a clear build-up of liquidity.
- 19:07You come into yesterday's trap area,
- 19:09trap reaction, pullback before the
- 19:11break. This is known as a supply to
- 19:12demand decisional and therefore you see
- 19:14the inducement of the day is down here.
- 19:16You drop an ATM because it's a confirmed
- 19:17one. It happens in the key time window
- 19:19like it often does leading to the trade
- 19:21of the day very, very nicely. Every
- 19:23single day walk away from the trap, walk
- 19:25away from and where are the traps? Where
- 19:27you have a trend line that is failing.
- 19:29You have a support level that is
- 19:30failing. These are traps. And once
- 19:32again, when you see these equal highs,
- 19:33you see this sweep, you see the bearish
- 19:35reaction, price is going to come in and
- 19:37do the same thing again. It's going to
- 19:38take liquidity over here. Sweep, give
- 19:41the main push and leaves a very nice
- 19:43smart money trap. Why do we leave a
- 19:45smart money trap? Well, you got to
- 19:46understand what is a smart money trap,
- 19:48why they exist, how they look like. And
- 19:49then from yesterday's inducement zone
- 19:51that led to the main push, notice how
- 19:53fast and direct they are. If you're in a
- 19:55trade like this, it hits your 1:3 and
- 19:571:10 risk reward in usually an hour, the
- 20:001:3 in usually minutes. You break even
- 20:01in minutes and it's effortless because
- 20:04it's tap and go. It doesn't hang around
- 20:05your entry for days. It doesn't go in
- 20:07your direction only to retrace 90%
- 20:09before going out you out. Stressful
- 20:11trading like that. When you trade the
- 20:12inducement of the day, you have clear
- 20:13confirmations, you know when to be
- 20:15trading, you know where to be trading,
- 20:17you know the confirmations and you avoid
- 20:19traps. And just like this inducement of
- 20:21the day yesterday, it leads to the trade
- 20:23of the next day. And we put an ATM
- 20:24there. Why? Because we took into the
- 20:26demand area of yesterday that led to the
- 20:28impulse. We had a smart money trap. We
- 20:30had all of this trend line failure and
- 20:31notice all these details because people
- 20:33that don't nail context, don't nail the
- 20:35analysis, they're going to walk into
- 20:36clear traps like "Oh, this is not a
- 20:38sweep and a break of structure. This is
- 20:40not a point of interest where you see
- 20:41build up, inducement sweep, break of
- 20:43structure, break of structure lower,
- 20:45start to sell in this area." That's a
- 20:47trap once again. Therefore, these all
- 20:48became trap areas. This trend line was a
- 20:51clear trap for everybody to fall into.
- 20:53And notice how in this key time window,
- 20:54all of these areas of smart money trap
- 20:56supply zone trap, all of these areas is
- 20:58faked out because this inducement is
- 21:00driving price. And like we have every
- 21:02single time, like it was yesterday and
- 21:04all the days before, once you find the
- 21:05inducement of the day, the trap of the
- 21:06day, the entry of the day, you have a
- 21:08effortless, fast trade in your
- 21:10direction. Immediate TPs, basically
- 21:12effortless trading. You just need the
- 21:13confirmations. And we can do this all
- 21:15day long, every single day. This is
- 21:17exercise I want for you to figure out
- 21:19yourself, because once you see it, you
- 21:20cannot unsee it. Inducements run the
- 21:22show, they run the context, and your job
- 21:24is to start to read it like a storybook,
- 21:26and then build confirmations around it.
- 21:27Or watch all the videos on this channel
- 21:29where I give you strategies, playbooks,
- 21:31step-by-step examples of case studies of
- 21:33trades. But the main thing for you to be
- 21:35profitable is remember that a restricted
- 21:37trader is a profitable trader.
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