Full transcript
0:17all right folks welcome back
0:19all right so this is the tuesday january
0:2125th 2022
0:23ict mentorship on the youtube channel
0:26all right so
0:28this is the internal range liquidity and
0:30market structure shift lecture
0:35all right so i gave you homework on the
0:37community tab if you have not been
0:39paying attention to that that's where
0:40i'm kind of keeping you abreast as to
0:43what you should be expecting next or
0:45something that just comes to mind that i
0:46feel like sharing so this is the link i
0:48sent out the other day
0:50and i wanted you to go through
0:52this particular chart
0:54and look for reasons that provided the
0:56market structure shift and the buy side
0:59and sell side liquidity
1:02so if you have not done that please stop
1:04the video
1:05and do that now otherwise you're
1:06cheating yourself of learning
1:07opportunity
1:11all right so here is that chart
1:14again 15 minute time frame on the e-mini
1:17nasdaq 100 futures contract for march
1:19delivery 2022.
1:22and take your attention over here
1:24okay this old low
1:30and these relative equal highs see that
1:33old low below that is cell stops
1:37and relative equal highs above that is
1:39buy stops
1:40now you could have used this high here
1:42there's nothing inherently wrong about
1:43that but whenever i see
1:45equal highs like this might and if it's
1:47higher than an old high over here i'm
1:49going to use that so that way there's a
1:50little bit of insight for you for your
1:52study journal
1:55the sell side liquidity
1:57you can see that the market trades down
1:58hits that runs through it
2:01then rallies all the way back up
2:03clearing equal highs
2:05so the buy stops have been taken here
2:07okay so at both of these price points
2:10here
2:11and here
2:12that's the
2:15i guess the point at which you'll look
2:18for or anticipate a market structure
2:20shift
2:21you don't force it okay i see a lot of
2:23people try to teach my concepts it'll
2:25talk about market structure breaks or
2:27shifts and we'll use that term
2:28interchangeably
2:30but
2:31for
2:33intraday i want you to think about
2:34intraday market structure shifts because
2:37it's not necessarily a
2:39break in market structure that leads to
2:41prolonged
2:43multi-day
2:45movement okay
2:47what do i mean by that
2:49if you see a market structure that's
2:51bearish
2:52and it's broken to the downside
2:55intraday that may just lead to an
2:57intraday price leg that may eventually
3:00see that high be taken out in the same
3:03day so that's why i'm using the term
3:05market structure shift
3:07not market structure break
3:10for our conversation here on this
3:11mentorship just know that when i'm
3:14gonna lean on that term market structure
3:16break
3:17it means a little bit more in context
3:19versus an intraday shift in market
3:22structure just means that there's likely
3:24a downside
3:26draw
3:27or an upside draw intraday by saying the
3:29term shift okay so there's a little bit
3:31of semantics there
3:33all right so we have
3:34both of these areas
3:36here
3:38and here where there would be a
3:40likelihood of a market structure shift
3:43up here we look for a fake run above
3:46here
3:47so that fake run above how do we know
3:49it's going to be a market structure
3:50shift that's bearish
3:52i get that question a lot even from
3:53mentorship students
3:56what you're looking for is the evidence
3:57i'm going to show you here tonight okay
3:59forget everything else everybody else
4:01says about market structure breaks and
4:02shifts and all that stuff
4:04this is it okay this is the brass tacks
4:06there's absolutely nothing else that you
4:08need to know about it i promise you if
4:11they add anything to it it's just
4:12because they want to sound and look
4:14different but this is the algorithmic
4:16perspective of a market structure shift
4:18in today
4:21now keep
4:22this price level in mind so it's
4:24essentially fourteen thousand six
4:25hundred
4:26and fourteen thousand eight twenty we're
4:28just eyeballing it okay
4:32now dropping all the way down into a two
4:34minute chart
4:36this is that same particular day
4:39here's those relative equal highs
4:42and
4:43this run down here
4:45okay
4:48if you recall
4:5114 6
4:54and around that 14 860 or so okay
5:00if you look at this
5:01market structure
5:04without having the levels on your chart
5:06it's easy to get lost
5:08in all the quote unquote noise the
5:10uninitiated and i know it's going to
5:13razz the people that don't care to
5:14really learn here
5:16but the uninitiated folks that will
5:18watch a video or listen to some of the
5:20lectures i'll put out
5:22they're trying to bring something in
5:24they're trying to bring in their
5:25preconceived notions and ideas about
5:27what they think they understand about
5:29markets or technical analysis or
5:31something
5:32in price action
5:33and i want to kind of like
5:36allow you to just put that aside for a
5:38moment and just imagine
5:40this chart
5:42is the first time you looked at price
5:43action for the first time and that's
5:45hard but kind of like strip away
5:46everything else that you want to
5:48bring to the conversation no order block
5:51discussion no breaker no none of that
5:53stuff okay supply and demand elliott
5:55wave all that garbage if you look at
5:57this price action here
5:59when we had this low form
6:03right before this low was formed there's
6:06a swing high right there
6:09now in the first mentorship video i gave
6:12you i mentioned that
6:14high frequency trading algorithms
6:17will use
6:18market structure on a three minute two
6:19minute and one minute chart many times
6:22sub one minute that would be like
6:2545 second
6:2630 second 15 second intervals
6:29okay
6:31what the algorithms are actually doing
6:34and
6:35this is also going to correct a lot of
6:36people out there because they put out
6:39misinformation it's so nonsensical but
6:42i'm challenging you to go into your
6:44charts and see if this is not what's
6:45actually going on because it happens
6:47every day if high frequency algorithms
6:49are operating every single day then
6:51these signatures will be in the chart
6:54okay
6:56if you look at this short term high here
6:59right before this low formed
7:01when this
7:02high is taken out right there on that
7:04candle
7:05that's significant
7:07only
7:08only
7:09if this run down here
7:12has traded into
7:14sell stops
7:16okay below an old love some kind it
7:18could be a
7:19a double bottom it could be a single low
7:21okay but it's got to be trading under
7:24some
7:26retail idea that would be viewed as
7:28support
7:31up here the same thing
7:33we're trading above
7:35highs
7:36so we know that above old highs
7:40a neophyte perspective will be
7:43these are unknown orders so therefore
7:45that's a flawed perspective on price
7:47action how do you know there's liquidity
7:48up there how do you know there's buy
7:50stops up there it's just logic
7:51it's simple look at the chart
7:53everybody's trying to do something based
7:56on some kind of
7:57theory logic whatever some system
8:01there's buyers and sellers coming in at
8:03all times
8:05their buying and selling quote unquote
8:07strength or pressure has absolutely no
8:10bearing
8:11on where these prices are going to go
8:13i know that
8:15may shake individuals that think they
8:17know something about the markets oh i
8:18have an uncle that used to be on the
8:20floor of the chicago board of trade and
8:21blah blah blah the mercantile exchange
8:23guys say this i don't care okay i don't
8:26care what any of those folks say because
8:28they didn't design the algorithm
8:31so
8:33again
8:34put all those
8:35you know talking points and everybody
8:37else's opinion you've adopted because
8:39you probably heard someone else talk
8:40about it
8:41and you subscribe to the review because
8:43it's easier just to do that instead of
8:44going and looking at it for yourself and
8:46that's what i'm asking you to do
8:48i'm telling you this is my personal
8:51belief
8:53you're going to see proof of these
8:55things
8:56in a live account execution
8:58but i want you to see the logic behind
9:00it because if you can see this
9:02you'll be light years ahead of everyone
9:04else
9:05and you'll laugh
9:06in the face of all these people that are
9:08going to tell you you're wasting your
9:09time trying to learn this i promise you
9:12this lesson is going to change a lot for
9:14you
9:17when this
9:18run above these relative equal highs
9:20happens right there you're anticipating
9:24a market structure shift you're not
9:26forcing it
9:27you're not trying to get ahead of it
9:30okay i don't think any of you are going
9:32to have the skill set to do that there
9:34are ways to know when to sell short
9:35right above that not even wait for the
9:37shift in market structure
9:39just like there's ways to know to be a
9:41buyer down here without seeing that
9:43short term high broken
9:45then looking for a buy
9:48over here the opposite see this swing
9:50low
9:52let me go back to this for a second
9:54we have this high
9:56on this candle then we have the candle
9:58right after that here the highest one
10:00and then the lower
10:01high of this candle here so that's a
10:03swing high
10:04very simple little pattern but it means
10:07a lot when it's in the proper context
10:10when this high is broken with this
10:13particular candle right there that is
10:15significant only on the basis that we
10:17have taken liquidity out of the
10:18marketplace
10:20that's it
10:21so when it broke this short term high
10:23this is more meaningful
10:25and then the market will start to seek
10:28buy stops
10:29okay or buy side liquidity that would
10:32rest above here
10:34here
10:35and here now i shared an example of live
10:38executions and i was teaching on the
10:39idea of
10:41utilizing micros which are essentially
10:44two dollars per handle okay
10:47so or 50 cents per tick
10:50this chart is nasdaq e-mini this would
10:53represent twenty dollars
10:55per handle and there's four ticks in
10:57each handle there's your twenty dollars
10:59per handle okay so again what that means
11:01is fourteen six eighty to fourteen six
11:04eighty one that's one handle or four
11:06ticks
11:09there are some
11:11that will doubt the idea that you can
11:13trade all these little
11:14internal
11:16swings
11:17okay and i'm going to give you some
11:18insights on
11:19how i was doing it okay the main
11:22context of this lesson is for you to go
11:25in
11:26to your charts and try to prove me wrong
11:31okay
11:32that's the challenge here that's your
11:33homework i want you
11:35to learn what i'm doing in this lesson
11:37here
11:38and then you go into your charts back
11:40testing and i'll show you what that
11:41looks like what does it mean to be back
11:42testing and what you're looking for and
11:44how you're going to screen capture all
11:45those things but your
11:48mission is to go into the charts
11:51and look for this not being true
11:54okay this is exactly what i did on baby
11:57pips back in 2010
12:00i told everybody do not take my word for
12:01it
12:02don't take my word for it go into the
12:05charts and see if this is true or not i
12:07believe it
12:08but i don't want to try to convince you
12:10because i won't
12:12you'll convince yourself once you start
12:14seeing it
12:15it's it it's over there's no argument
12:17after that okay but it's simple logic
12:20very simple this is a very clean chart
12:21is it not
12:25all i'm going to do is add a few
12:26annotations and this is about as
12:28extensive
12:30of lipstick we put on our chart
12:33i know it's shocking right
12:35can you still see the candles
12:37because it might be a little obstructive
12:40i'm being facetious you see these guys
12:42out there with these charts that have
12:43graffiti all over it you can't even see
12:44the price candle nothing you can't you
12:46can't see any of it
12:48but there's all kinds of overlays of all
12:50kinds of nonsense which means absolutely
12:52nothing because algorithms could care
12:53less about any of that stuff triangles
12:56harmonic this
12:57crabs
12:59it's crazy i know but hey everybody's
13:02gotta have a religion
13:04so here's those
13:05cell stops
13:07so this little area here shaded in
13:09that's a
13:10area where cell stops would be residing
13:12below
13:13that 14 600 level okay on that 15 minute
13:16time frame
13:18so
13:18the market dove into that liquidity
13:21and you may or may not know that is a
13:23buy you don't need to
13:26you anticipate a
13:28shift in market structure
13:29when the market rallies above when does
13:31that happen on this candle right here
13:32see that little light bulb that's when
13:34you're thinking okay now i have a
13:38condition in the marketplace
13:40that i might see an opportunity intraday
13:43let's see if there's further evidence to
13:45that
13:47high is taken here we traded above it it
13:50does not need to close above that
13:53okay real important
13:56once that candle closes
13:58and this candle opens you're gonna
14:01monitor this candle and you want to see
14:03as soon as this candle closes does it
14:04create that fair value gap
14:08if it creates a fair value gap again
14:10that's a candle with a high one single
14:12pass up
14:13next candle has a load it doesn't
14:14completely overlap all this
14:16that's a fair value real simple okay
14:19this candle is where you would look to
14:20potentially trade at the earliest
14:23because now there's a gap there the
14:24market trades down into that
14:26boom takes off here is insight
14:30that everybody needs to understand
14:32because they're out here running around
14:33on youtube trying to teach order block
14:35theory
14:36order blocks
14:38okay i invented it it's mine
14:41no one talked about it before me and i
14:43first mentioned it in 2010 on baby pips
14:46prior to that 1996 i was only teaching
14:48it to people one-on-one in teachings
14:50that's it
14:51okay you can't find it in books prior to
14:53that it's mine
14:55no one else taught it before me it is
14:57mine so i'm going to correct all of you
14:59today so that way you can teach your
15:01people correctly and not hurt them
15:04see these down closed candles
15:06see that
15:08that's all one continuous order block
15:12what's it doing
15:14it's inside that pool of liquidity cell
15:16stops
15:18where's the open on that
15:20series of down closed candles right here
15:23that's the price level extending out in
15:24time boom
15:27so inside this fair value gap this
15:29opening price on the order block that's
15:31your buy
15:32plus
15:33three pips or whatever for spread
15:35and that's what you would use for a
15:36limit order
15:38hmm
15:40that's pretty neat in it
15:42well
15:44price starts to run where
15:46above the highs where by slots will be
15:47here
15:48above this high here
15:51and above this high here now go back and
15:53look at the example where
15:55this particular day here
15:57i put in orders
15:59and i was still learning how to use the
16:02thinkorswim platform and there's a
16:04little toggle box where if you toggle it
16:07it'll send your order right to the
16:08marketplace it won't let you review it
16:10and i had put that on to see if it was
16:12going to show me any kind of information
16:14on the screen but i didn't take it off
16:16so what happened was i put that on it
16:18was actually an order that i
16:20mistakenly had in so i was hoping to see
16:22if it could
16:23give me an opportunity to get out of it
16:25and cover with next to nothing or maybe
16:26even squeak out a profit it wasn't
16:28having it so i had to reverse and go
16:30back and go short
16:31wrote it down and then
16:33you'll see me covering in here and then
16:36going long
16:37selling short
16:38reversing going short
16:40buying long in here
16:42inside the order block rallied up
16:44sold the long reversed it
16:47bought it here
16:48got out over here and resold for that
16:50big run
16:51into that okay
16:53that's what i was doing there's people
16:55out there going to tell you he doesn't
16:56trade that way these people don't know
16:58how i'm trading you have no idea how i'm
17:00trading
17:01none of you do okay
17:02i'm teaching you
17:04obviously for those individuals that are
17:06outside my paid mentorship which is not
17:08open so please stop emailing asking
17:10people are still
17:11sending me emails can i join no you
17:13can't join be content with this i'm
17:15teaching you gold
17:17and it's costing you nothing but the
17:18time to sit down here
17:20and if it doesn't work you're going to
17:21know right away
17:23okay i'm not wasting your time
17:25i'm going right into the brass tacks
17:27that way the people that are weak minded
17:29will know right away this is it or it's
17:31not that way you'll know this is too
17:33much work for you
17:34and that's fine go and do whatever you
17:35got to do and i wish you good luck but
17:37the individuals that really put the time
17:39in and test what i'm
17:41challenging to look for you're going to
17:43see it's there and it repeats like
17:45clockwork okay it's real important you
17:47have that mindset
17:49so the buy stops
17:51above here that was taken
17:53this swing low forms once this candle
17:55closes so this candle we're watching
17:57does it go below that short term low it
17:59does
18:00so now we have a shift in market
18:01structure that is now bearish only
18:03because we've taken buy stops
18:06okay
18:08if everybody got forms the market
18:10rallies up into that you go short there
18:13what are you looking for
18:17below here sell stops below here cell
18:20stops below here cell stops and in this
18:22fair bay gap here
18:24so if you are in a position that has
18:27multiple contracts or say you have
18:30a forex trade because this works in
18:32forex too it's not just limited to
18:34futures
18:35again i'm just using this asset class
18:36because i cut my teeth on these markets
18:39when everybody else was still in
18:41elementary school that's trying to teach
18:42today i was trading the s p
18:44okay i probably sound like a young guy
18:47but i'm actually getting turned 50. so
18:49i've been around for a long time 30
18:50years this november 5th 30 years that's
18:53three decades
18:55and the things i'm teaching you i'm not
18:56teaching you one trick pony
18:59insight these things work on all asset
19:01classes now i'm not going to co-sign the
19:04crypto markets because that
19:06only my students are reporting that this
19:08stuff works there i don't even mess
19:10around with it that much then though
19:11okay
19:12but
19:13you can take partials
19:15below here i probably wouldn't do it
19:16there but below here
19:18here and there's something you're saying
19:20why wouldn't you take them below their
19:21ict well if you're trying to get short
19:23here that's not really that much
19:24movement so if you're going to take some
19:26thing off your trade below that low why
19:28not just try to reach for that one and
19:30you could get it there right here okay
19:32and then although that low is nice as
19:34well
19:35below this low and this is what i
19:37mentioned on the first
19:38lesson
19:39okay elements to a trade setup
19:42this is
19:43below the 50
19:45level of this high
19:47and that low okay so 50 level that's
19:50what we targeting now
19:52this candle's low was the high end or
19:55first objective
19:57inside this gap
19:58so that's your target you're gonna look
20:00for that
20:01so
20:02you're looking for low hanging fruit the
20:04easiest target to get to you're not
20:05trying to be perfect and you grow into
20:07eventually holding to see if it will
20:09fill in that gap
20:10okay this very very always going down to
20:12this candle is high
20:15that's
20:17something that you
20:18strive for over time
20:22if
20:24you understand what i just showed you
20:25here
20:26that's a very simple process of looking
20:28for number one liquidity
20:30gauging what happens without having to
20:33know for certain because you don't know
20:35you're not going to know until the
20:37market shows its hand this is it showing
20:40its hand
20:45okay that's it
20:47now
20:49let's go into a one-minute chart and see
20:50how that looks a little bit different
20:52but still has the same characteristics
20:55here's that same price structure
20:58just on a one-minute chart
21:00the same logic still there right
21:02swing high taken after liquidity has
21:04been traded into
21:06this short-term high
21:08it's violated right when this trades
21:10down in here what's actually occurring
21:12okay put this in your notes
21:15high frequency algorithms are hammering
21:18they're just throwing orders in bye bye
21:21bye bye bye that is not okay here's an
21:23important thing that is not causing
21:26okay it's not causing
21:29the market to go higher
21:33it's just
21:35volume that's coming in
21:38the algorithms that deliver price
21:41that offer price they're constantly
21:43offering the price in the marketplace
21:46that's what's beginning to spool and go
21:49higher okay and regardless of where you
21:51want to trade at your limit orders they
21:53may not get filled
21:54where you're trying to buy with a market
21:56order
21:57you may think you're getting in at 14 62
22:01but by the time your order is executed
22:03and confirmed you're in 14 664.
22:07that's slippage
22:09okay that's negative slippage if you
22:10were trying to buy it at 14 62
22:13and it filled you at 14 661 that's
22:16positive slippage that's better than
22:17what you were expecting
22:18so
22:21when price starts to rally
22:23all this is is a default to
22:26the algorithm constantly offering price
22:28at a higher price
22:30okay and the logic and argument for
22:32anyone who wants to say oh it's buying
22:34selling pressure this guy has no idea
22:35he's talking about i know somebody that
22:36used to trade on the floor and he's
22:38laughing at ict right now okay
22:40go into your charts forget that i'll
22:42i'll let you have that
22:44perspective for a moment for the
22:45argument but go into the charts
22:47and see if what i'm not suggesting to
22:49you is the truth okay
22:52i could sit here and do a complete
22:54series on all the things that lead to
22:56what i'm saying is true
22:58but none of you will still believe it
22:59i'm showing a live account and entries
23:01and executions and they're still
23:03doubting it
23:04so no matter what i do there's going to
23:05be people out there but you didn't do it
23:07wearing orange
23:09you didn't do it in your corvette did
23:11you flip which i don't flip corvettes
23:14you're getting all kinds of stuff out
23:15there nonsense
23:16but you don't see anybody going into
23:18that robin's cup
23:20hello
23:22so
23:23we're looking at the
23:25swing lower here
23:27market breaks down trades back back up
23:29into this back up atmosphere you got
23:30here
23:32and sells off there's another favorite
23:33you got right there trades up into that
23:35as well this is a one minute chart so
23:37it's giving you multiple
23:40points of execution that you could trade
23:42on
23:43and then
23:44dives
23:46see these two candles here
23:48that's one consecutive bearish order
23:50block
23:52the opening price
23:54extended out in time
23:55why is this a good a bearish order block
23:57because it has that gap
24:00and it's taken liquidity
24:03and there's a market structure shift
24:06there's your height frequency high power
24:08high probability bearish order block
24:10forget everybody else's
24:13interpretation of my concept the order
24:16block
24:17that's it
24:18okay what is an older block you do you
24:21see a lot of people asking what is an
24:22order block
24:23only my students and mentorship know
24:25what an order block is okay what it is
24:28it's just change in the state of
24:29delivery
24:30okay it's a change in the state
24:34of delivery
24:36the market's being offered higher higher
24:38higher in these two up close candles
24:40how did this series of up close candles
24:43begin with this candle's opening right
24:45there
24:47that opening
24:48once this candle trades below it
24:52that changes the state of delivery so
24:55you go back to that point of reference
24:56right there
24:58and that's why it's sensitive the
24:59algorithm remembers that right there
25:02okay that's all i'm going to give you on
25:04the free mentorship level but that is
25:06your answer
25:07okay that is what an order block is it
25:09is a change in the state of delivery
25:11much in the same way all of this
25:13movement down here all these down closed
25:15candles the opening on that candle
25:17starts this series of delivery on the
25:18downside
25:19when that opening price gets violated
25:21here
25:23it changes its state of delivery now it
25:24was offering
25:26sell side
25:28when it goes above that opening now it's
25:30offering buy side what will it be doing
25:33after that it will be looking for buy
25:35stops buy stops buy stops because it's
25:38offering buy side liquidity
25:41see you guys don't even know what you're
25:42talking about you're trying to teach my
25:44concepts
25:45and you have no idea what you're doing
25:46you're talking about things in the left
25:47side of the chart
25:49trade it
25:50do it okay
25:53you don't even know what you're looking
25:54at
25:55and you're hurting the people you call
25:56your students
25:58and then right away when people
26:00don't know how to use them or understand
26:02what to do with them
26:03they'll say well this stuff doesn't work
26:05because they learn from someone who
26:06doesn't know what they're doing
26:08okay
26:09it's it's blatantly obvious what it is
26:11but okay
26:13same thing here
26:14buy side is being offered until that
26:17opening price is violated right there
26:18then the change of state of delivery
26:20occurs now the market's going to be
26:21doing what
26:23offering sell side liquidity what's that
26:25mean it's going to start going lower and
26:27attacking the sell stops all the sell
26:29sell equity it's offering it to the
26:30marketplace that's what's happening
26:32that's what the algorithm is doing
26:34that's what the algorithm does okay you
26:37buying and selling me buying and selling
26:38everybody over there on reddit is not
26:40going to change
26:42anything
26:43at all it's not going to do anything
26:47and the argument that defeats all that
26:49buying and selling pressure is how do
26:52you argue against the bull squeeze and
26:55the bear squeeze there's a short squeeze
26:57going on the market's rallying up when
26:59it's been bearish
27:01that's just their cop-out that's their
27:02way of saying well you know
27:05everybody shorten and now they're
27:07covering so there it is and i learned
27:09the same thing folks i believed all that
27:10garbage
27:11two thousand plus books i know
27:14what those books told me is what you are
27:16learning too
27:17because the same people teaching today
27:19retail garbage
27:21elliott wave this and that
27:24it's all stupid stuff man it has nothing
27:26to do with why these markets are doing
27:27what they're doing
27:28zero has nothing to do with it
27:31don't worry i got proof
27:32today but the market goes down to that
27:3450 level because it's going down to what
27:37i teach you what did i say in the first
27:38video
27:39it's going down from a premium
27:42market
27:44relative to this low and this high
27:4650 is here that's equilibrium so it's
27:48going to go down to a discount and
27:50that's that gap right in here it doesn't
27:51look like a gap so much here but if you
27:53go back up one more time
27:55that's that single opening right there
27:58on a two-minute chart and then on a
27:59one-minute chart it's two candles that
28:01make that up but you're gonna have to do
28:03is go through a progression of going
28:04from the three minute two minute and one
28:06minute chart and you'll get your market
28:08structure and your
28:09areas of where it wants to look for an
28:10imbalance or overload high and it just
28:13makes it easy
28:15but just a real nice delivery there
28:20and here's the lipstick on it on the one
28:22minute chart
28:24swing high is broken
28:27market structure is now bullish
28:30rallies
28:32taking buy stops taking buy stops taking
28:35buy stops
28:36this right here these highs right here
28:38is just staying below that low it's
28:40building up
28:42more interest that this is what
28:44resistance
28:46that is engineering liquidity
28:48that way
28:50when this runs above it
28:51those individuals that know what you're
28:53learning today they know that that's a
28:55pool of liquidity for buyers coming in
28:57at a high price why is that useful
28:59because smart money that bought down
29:01here or here or here or here or here
29:07that's where they sell
29:09to high
29:10seeking
29:11buyers
29:15it's not hard logic folks it's not
29:17complicated
29:18okay it just feels complicated because
29:19you see other people trying to teach
29:21something and you hear or read in the
29:22comments you're teaching it better than
29:24ict does no you don't
29:26[Laughter]
29:27no you're not you're not doing you're
29:29actually teaching it incorrectly and
29:31without the real context of what it is
29:34that you're missing
29:36but i get it you think every down closed
29:38candle is a bullish order block and up
29:40claim that one is a very short block and
29:42that's not the case
29:44look in here
29:45okay for the guys that say i did not
29:47take trades or i didn't trade this way
29:50see that gap right there see that see
29:52that down closed candle right there
29:53that's your order block boom by it right
29:55there
29:56what about this
29:58right here
29:59dropping down
30:01all these candles here
30:03are more
30:04significant if you look at it on the two
30:06minute chart
30:09see that it becomes one order block
30:13right in here
30:15buy it sell short buy it again
30:18we got up into the stops
30:20sell short reverse and ride the larger
30:23swing down
30:25don't listen these yahoos out there to
30:27say that i'm not proving something to
30:29you i'm proving it that's what i said i
30:30was going to come out here this year and
30:31do that's this whole point of being here
30:34this year
30:35it's my 30th anniversary
30:37november 5th
30:38i've been a trader
30:40in the markets
30:41living and breathing this stuff for 30
30:43years
30:45you're not
30:48really in any position to demand
30:50anything from me i enjoy doing this
30:53but i don't need to provide any kind of
30:54proof to you either but i'm loving it
30:56this year
30:57i'm
30:58slowly putting it out there and enjoying
31:00all the naysayers and the things they're
31:02saying
31:03and it's just fun because they have no
31:05idea what i'm about to bring this entire
31:07year
31:08none of you are going to doubt anything
31:12so the one-minute chart
31:15just a real nice delivery here as well
31:18filling in that very value you got
31:21change in the state of delivery
31:23now it's offering sell side what's that
31:25mean it's going to match up
31:27sell stops it's going to keep going
31:29below old lows
31:32into an imbalance until we get down to a
31:34discount
31:37is that hard
31:38is it hard to see
31:40what i'm showing you here
31:43pretty clean isn't it clean chart now i
31:45don't have all these things
31:48on my chart when i'm watching price
31:49because i already know what i'm looking
31:50for
31:51and i don't want to have any
31:52distractions and i don't want to have
31:54a level or some kind of annotation
31:56that's going to keep me thinking only
31:58with that perspective okay or that idea
32:01it allows me to be fluid
32:04with
32:05what the market's actually doing
32:07versus going in and saying okay this is
32:09what i think is going to happen and this
32:10is the only thing that can happen
32:13you understand what i just did there
32:15i allow myself to be flexible whereas if
32:17you have all these things you're putting
32:18on your chart
32:20you're only
32:22only seeing your will be done
32:26so i keep my charts
32:28clean
32:30and then i add the annotations so that
32:31way my students can see
32:33what the internal dialogue in my mind
32:35was while watching price do what it does
32:38naked there's nothing on the charts at
32:40all when i'm trading zero nothing okay
32:44so with that
32:46i want you to think about
32:49how this is useful okay
32:52number one
32:53you're looking at
32:55london highs and lows the session for
32:58london
32:59open okay for instance like two o'clock
33:01in the morning at five o'clock in the
33:01morning
33:02new york time every time i tell you just
33:05always set it
33:06with new york local time
33:08two o'clock to five o'clock in the
33:09morning that's your london session
33:11what's the highs and lows of that
33:12session okay
33:14that's important because the market's
33:15going to probably sweep above those
33:17highs or sweep below those lows and
33:19create situations like this okay
33:22and the new york session is seven
33:25o'clock in the morning to 10 o'clock in
33:27the morning new york local time okay
33:28what's the session high and low for that
33:31and do the same thing for asia okay 7
33:34p.m to
33:369 p.m
33:38and that's it those are the three times
33:40of the day that i'm looking for specific
33:42key highs and kilos
33:44and
33:45any intraday high and low forming right
33:48before the equities open at 9 30.
33:51pretty easy right the hours of operation
33:53again are generally between 8 30 in the
33:55morning until 11 but it can be extended
33:58to new york lunch noon i do not
34:01tend to
34:02take trades after
34:04noon local time in new york that hour is
34:07usually very problematic and it just
34:10it's better not to even look for any
34:11kind of setups wait until one o'clock
34:13preferably really 1 30
34:15to 4 o'clock then you get that afternoon
34:17trend
34:18typically you'll see between two o'clock
34:21and three o'clock there's a setup that
34:22usually forms in the afternoon trend or
34:24set up in that period of the time of the
34:26day
34:28that will also offer opportunities but
34:30that's outside the scope of what i'm
34:31going to be teaching in this mentorship
34:33but there's lots of things you can look
34:35on youtube about the afternoon session
34:37and you can just combine some of the
34:39things that i'm going to teach you here
34:41and just it's not hard to make a
34:43you know an addition to
34:45what you're learning here so if you want
34:46to trade the afternoon session you can
34:48obviously pick up some insights from
34:50other youtubers that do trade futures
34:52but
34:54for developing students this is enough i
34:56promise you this is enough okay
35:02all right so we talked about internal
35:03range liquidity
35:04and internal range liquidity is looking
35:07for
35:08short-term lows or short-term highs
35:10inside a price leg that we're retracing
35:13back into okay that's all it means
35:15internal range liquidity is a short term
35:18higher low with stops above or below it
35:20or an imbalance in that same
35:23range of price action
35:25and i taught you market structure shifts
35:27showed you exactly all that's necessary
35:31that is all that you require
35:33and the skill set of identifying pools
35:36of liquidity
35:37that is going to be something you learn
35:39rather quickly just by going through old
35:41data and looking at the times of the day
35:42i gave you in this lecture all right
35:44your homework is you're going to go
35:45through your e-mini futures intraday
35:47charts
35:48and you'll be looking for stop hunts
35:50that lead to market structure shifts
35:51intraday you're going to log your
35:53examples with your own annotations for
35:55your study journal
35:56so what i showed with the break in the
35:59market going higher and lower above
36:02old highs or lower below an old low
36:05that's running for stops that's a stop
36:07hunt
36:09then you're looking for that signature
36:10for the market structure shift on the
36:13three two and or one minute charts okay
36:16if you look for that between 8 30 in the
36:18morning to noon new york local time
36:20in the e-mini markets or if you're
36:23watching the micro markets
36:26the same logic exists okay but you're
36:28going to start going back from today
36:31and go back as far as the data will
36:33allow you the more you do it and you
36:36annotate your charts the more experience
36:38you're going to have and it's pseudo
36:40experience yes but you're teaching your
36:42brain i use this analogy a lot with my
36:44paid mentorship students
36:47it's like hunters okay
36:50to know where you're gonna find a deer
36:52if that's what you're going to go out
36:53and hunt you need to know how to track
36:55one okay or sit up in this tree stand
36:57and wait for it to walk by but usually
36:59they go out and they walk around in the
37:00woods and look for tracks
37:02would you know what a deer track looks
37:04like before i was shown one i didn't
37:06know what it was okay but
37:08because i'm showing you what it looks
37:10like that's all this lesson was
37:11predominantly focusing on is the
37:14actual
37:16view of what it looks like the details
37:19what you don't need is anything above
37:22and beyond what i've shown you
37:23the only thing you need is what i've
37:25shown you here it's simple it's straight
37:27to the point
37:29and i'm only talking to that way you
37:31understand
37:32that this is all that is required
37:35notice there is no commitment of traders
37:38notice there's no breakers notice that
37:41i've stripped it down to the chrome now
37:43this is the only way you can trade but
37:45i'm showing you something that i think
37:46personally is in my opinion this is so
37:48universally simplistic
37:51all of you should be able to do this one
37:53okay in my opinion i think this is it
37:55and that's why i
37:57more or less built it because i think my
37:59daughter which has zero interest in
38:01trading
38:02i think that this is going to be easy
38:04for her to see it and understand what to
38:06look for it doesn't have a lot of moving
38:07parts notice that it's very specific
38:09times of the day specific highs and lows
38:12you're going to look for
38:14it's simple
38:15but you won't appreciate how simple it
38:17is until you go back into your charts
38:20and you annotate your 15-minute time
38:21frame for your
38:23buy-side liquidity pool and your
38:24sell-side liquidity pools
38:26and then going down into the
38:28three-minute two-minute moment chart so
38:30for every individual day that you're
38:32logging
38:33and you're back testing back testing is
38:34just dressing your chart up like i'm
38:36showing you here
38:38and then studying it not just do it say
38:40okay i'm done really going to see how
38:42price moved and how it delivered
38:45how many pips did it move
38:47how long did it move going higher or
38:49lower
38:51how much drawdown did it put on your
38:52position if you would have taken one
38:54all of those things you want to annotate
38:56that in your chart so that way when you
38:57go back through your study journal
39:00you'll have many examples that look at
39:02and because you're looking at it and
39:04you're seeing it over and over again
39:06repetitively
39:08when you have a period of time where
39:10nothing feels like it's working and you
39:12feel confused you want to go back
39:13through your study journal and look at
39:14these examples because it will encourage
39:16you through periods of time where you
39:18just feel like it isn't clicking okay
39:20it's why it's important to have a study
39:21journal because you're going to see this
39:22stuff is happening every single day
39:26every single day and don't
39:29take the infancy that you have right now
39:33and the lack of experience
39:35and amplify that to there's no way i can
39:38learn how to do this because that's a
39:39lie that's a facade don't buy into that
39:42view okay it's something that you're
39:44going to have to grow into and it's
39:46going to be quick for some and it's
39:47going to be slower for others and
39:49there's no way i can make it easier than
39:51this okay because that workload that you
39:53have to go through of back testing and
39:55logging and acquiring examples the more
39:58time you do that
40:00the more examples you acquire in back
40:01testing i swear this is the secret okay
40:05because that is the thing
40:07that's the work that's required
40:10a lot of people say they do it but they
40:12don't okay they go back a couple days
40:14and say oh this is i don't think i'm
40:16getting anything from this
40:18but that's the reason why they fail
40:20because that's the work that's required
40:22you know having 10 pages in a notebook
40:24saying i took notes and you didn't take
40:26notes you scribbled you wasted your time
40:28you knew going in you weren't going to
40:29be that
40:31headstrong about doing it and that's
40:33what is required to learn this otherwise
40:35if you don't have that mindset this
40:37isn't going to be for you because it's
40:38going to require work it's going to take
40:40effort and organization and personal
40:42responsibility if you don't have those
40:44characteristics you need to develop them
40:46if you don't develop them and patients
40:49you must go out there and find somebody
40:51that's good at giving you trade signals
40:53and just submit to that
40:55and you good luck with it
40:58but this isn't it i got another portion
41:00of the video i want to show you now and
41:01i'm going to show you this logic
41:02actually working today in the nasdaq
41:04e-mini contract
41:06all right so we're looking at
41:08trading views chart in the backdrop and
41:11i have
41:12the td ameritrade
41:15open over top of it scrunched down so
41:17that way i can
41:18operate with the trading view and i'm
41:20going to highlight in trading view
41:23a fair value got after a market
41:25structure shift it's bullish
41:28and i'm going to show you an imbalance
41:29that is in a premium
41:33okay see that just the opposite of what
41:35i've been showing you
41:38change the color on this
41:42and the idea is i want to see it drop
41:44down into that green area but if you
41:46look real close there's actually a
41:48smaller little fair value got just below
41:51that green box okay this is not supply
41:54and demand okay
41:56the idea is i want to see it
41:59drop down to that green box
42:01and i don't know if it's going to dip
42:03into the lower fare value cap so
42:04whenever there's two fair value gaps
42:06like this this is for your notes in case
42:07you missed this
42:09the idea is
42:10i'm going to let it trade down to that
42:12lower one i'll sacrifice that
42:14better entry and if it trades down there
42:17and trades into it
42:18and then comes right back up into that
42:19green box the first higher fair value
42:21gap i'll enter when it's in there
42:24and expect that the lower one won't be
42:26retraded to okay
42:30i'm going to be trading with
42:32a stop that will have
42:34essentially three and a quarter percent
42:36risk
42:37i'm not suggesting that's a size of risk
42:39for you i'm just telling you that's what
42:41i have in mind when i'm taking this
42:42trade
42:44and this is again just my personal
42:46belief in this i'm not suggesting that
42:48you should believe me or you subscribe
42:51to this view because i'm showing you a
42:53live account this does not mean that
42:55every trade you take forward from this
42:57day on is going to be like this it
42:59doesn't mean it guarantees profit it
43:00doesn't but my belief in my faith is
43:04that i've seen this work so many times
43:06over the last 30 years that i know
43:09that this is something that's going to
43:10work
43:11enough for me
43:12and that's all that matters it's a
43:13personal endeavor when you're
43:15speculating
43:17if you don't have any faith in it then
43:18obviously you would never put live money
43:21in it
43:24all right so the market's starting to
43:27drop down a little bit in here
43:29and let's say for instance that it runs
43:31up into that
43:33upper rectangle first before going down
43:35to the green one then i would nix the
43:37trade and that means i wouldn't take a
43:39trade and i'd move to the sidelines and
43:40probably do nothing the rest of the
43:42morning or watch and see if there's
43:43something else that sets up
43:46all right so now i'm inside that
43:47rectangle but notice again
43:49i want to see if it goes down to that
43:50lower fair value gap that's not
43:52highlighted i'll mention it when we get
43:53into it
43:57that right there i'm willing to
43:59sacrifice that because that's actually
44:00the better buy
44:04but if we go back up into the higher
44:06fair value gap
44:08and create like a tail
44:11on this particular candle
44:12i'll see that as just running for a
44:14lower imbalance and then
44:17it should accumulate in here
44:25and i have my trigger on the buy button
44:28okay i'm just going to go in with a buy
44:29at market
44:30not trying to do anything
44:33advanced here
44:40okay and if you look at the bottom of
44:42the td ameritrade live account module
44:45you'll see nasdaq symbol and
44:48you'll actually see my profit loss going
44:51as the trade is entered
44:54and i took a trade in the e-mini s p and
44:56it was basically a scratch i ended up
44:58making 75
44:59so i put a trade on and
45:02came back on me stopped me and that was
45:04the end of that
45:11all right there i am
45:13putting the order in
45:18and there's the confirmation that the
45:20orders were received
45:22so now i'm long you can see at the
45:25bottom of the
45:26pop out
45:28it shows that i'm down
45:30initially
45:32what looks like 20 i know i'm up 20
45:35right now so
45:36now down 75.
45:39so this is the part of trading where it
45:41feels scary if you've never traded with
45:44live funds
45:45and you just feel like you got to watch
45:47that number of how much money you're
45:49making and losing that's the worst thing
45:51to do okay
45:52what i'm watching is
45:54the chart
45:55does the chart continuously
45:57keep giving me feedback
45:59visually that it's accumulating and not
46:02going lower
46:03now it can go one more time back into
46:05that lower fair value gap that's
46:06permissible to me i'm willing to endure
46:09that
46:10i just don't want to see it overlap that
46:12entire thing and go lower because then
46:15i'd have to close the trade and
46:16preferably save my stop
46:21notice the bodies of the candles are
46:22staying relatively inside that fair
46:24value got the shaded green
46:27now i again i'm only adding this
46:29to the chart because i knew i was going
46:30to record it and share it with you today
46:33but i do not have this in my charts
46:35okay the only annotations i have in my
46:37charts is when i'm teaching my students
46:39and since you're here
46:41at least for right now
46:43i'm calling you my student
46:47even the haters
46:52all right
46:54so with the
46:56aid of
46:57hindsight because i lived this moment
46:59this morning
47:00it does go down one more time
47:02and stab into
47:04those wicks that are forming
47:26now when you put a trade on
47:29you kind of like
47:31give the complete control of everything
47:34to the marketplace
47:35and you want to just allow the market to
47:37do what it's going to do and not try to
47:39overthink
47:41every fluctuation
47:42every little minor movement in the price
47:45action
47:46is
47:47not something that is going to hopefully
47:50sway you so i've already had it in my
47:53mind that it could go back down and make
47:54a slightly lower low than those two
47:56little wicks that it's formed inside the
47:58lower fair value gap
48:01so since i had that expectation that it
48:03could potentially do that
48:06i'm
48:07desensitizing myself to that in the
48:10event that it forms
48:11an ideal scenario would be it doesn't do
48:13it at all obviously but
48:15i'm allowing for that price action
48:17especially with the volatility that
48:18we've been seeing the last few days
48:24and what i'm thinking right now is
48:25they're taking it down one more time to
48:27accumulate more longs
48:32notice i'm saying that not it's selling
48:34pressure driving price down
48:47i think this uh
48:49this is where i took the most heat on
48:50the trade if i'm not mistaken i think
48:52it's like 455 dollars of
48:55trade drawdown while being still in the
48:57trade which is below the threshold i've
49:00already said
49:05my maximum risk
49:07on a trade if i'm trading competitively
49:08is four and a half percent per trade
49:11generally i like to take a trade that i
49:13feel comfortable with around three
49:15three and a half percent that's a good
49:17trade for me
49:24okay showing signs initially that it's
49:26wanting to go higher
49:28and what i'm trying to do is keep my
49:30focus on that lower
49:32level or the the bottom of that pink
49:34rectangle that's the low hanging fruit
49:36that's the easy target i'm telling you
49:39to try to practice and learn to reach
49:40for the ideal scenario would be to go
49:43all the way to the top of that pink
49:45but while you're learning don't do that
49:48okay
49:49it's easier just to let it trade the low
49:52end
49:53and just take it off when it gives it to
49:55you
49:57i have my trigger on the flatten button
49:59so it cancels every order
50:01takes me completely out of the
50:02marketplace
50:07as soon as it touches the low end of
50:09that rectangle
50:11i'll collapse the trade
50:14right now i'm up seven nine almost nine
50:16hundred dollars eight ninety five nine
50:19thirty five
50:21nine twenty five
50:25and again you can watch that fluctuation
50:26in the lower right hand corner of the
50:29pop out
50:30i'm at 1100 plus
50:3311.49
50:35okay traded there touched it now i'm
50:37collapsing the trade there just like
50:39that and that's it
50:41now my account's booked and mark to
50:43market
50:44with eleven hundred
50:47ninety dollars and
50:48gain in the balance now reflects it with
50:50twenty seven thousand nine hundred
50:51fifteen dollars and eleven cents so
50:53there's trading view
50:55showing the chart i'm watching because i
50:57like trading these charts i don't like
50:59td ameritrades charts it's i don't like
51:01them so i'm just using the pop out which
51:03is why are you showing us things
51:05scrunched up you're just i'm not hiding
51:06anything you can see it it's right there
51:09so
51:10let's go over and take a look at the
51:11chart now
51:13you can see nothing has changed i just
51:15magnified that pop out so it's entirely
51:18taking up my entire screen
51:22we're gonna go to
51:23the nasdaq e-mini contract
51:26simple
51:28and i am so clumsy with this platform
51:30still
51:36and i'm sure i'll get real good at by
51:38the middle of the year and not nudge
51:41all right so we're gonna look at this
51:43day
51:44and there's the chart on one minute and
51:47i'm gonna add an overlay okay
51:50but i'm going to put in so you can see
51:51where the trades are
51:55in that chart there's the executions
51:59and there is these areas i showed you on
52:02the trading view chart
52:03so
52:04for the inquiring minds that wanted to
52:05see a live chart and live account and
52:08all that business and the logic of what
52:10i'm teaching in the youtube channel
52:12i humbly submit this
52:14and so i'll talk to you on
52:16thursday be safe