The ULTIMATE Smart Money Concepts Guide (Full SMC Course)

0:00If you truly want to master trading and

0:03make life-changing amounts of money,

0:05there is one thing that you need to do,

0:07and that is understand why price moves

0:10the way it does. You see, price is a

0:13language. It's a completely new

0:14language. It's a foreign language, and

0:16the only way that you will be able to

0:17master it is if you can learn to read

0:19it. And so, that's exactly what I want

0:20to share with you. Look, I've been

0:21trading now for over six years. I've

0:24made over seven figures directly from

0:26trading. And that is all because I

0:28learned how to read the language that

0:30the market was telling me. So now every

0:31time I look at a chart, it literally

0:33speaks to me. I actually understand what

0:35is happening. And if you can truly

0:37understand what the market is telling

0:38you, then well, of course, your

0:40decision-m process is so much simpler.

0:43There's no more randomness. There's no

0:44[music] more inconsistency. There is

0:46just action upon the information that

0:47you're receiving. And that's what I want

0:48this to be for you. And so again, this

0:50is a 5 and a half hour master class

0:52breaking down every single [music]

0:53trading concept that you truly need to

0:56understand the language. Each part of

0:58this course is purposefully designed to

1:00teach you part of the language that the

1:02market is telling you. By the end of

1:03this course, you will literally have

1:05every concept that you could possibly

1:06need to actually understand price. I'm

1:09talking everything on market structure,

1:12liquidity, supply and demand, order

1:14blocks, fair value gaps, daily bias, and

1:16there are a couple more bonuses inside

1:19small details [music] and concepts that

1:21have truly helped me and transformed my

1:22trading. And on top of all of that, at

1:24the end of the video, I'm going to

1:25combine everything that you have learned

1:27into a detailed stepbystep trading

1:29strategy with a trading plan and live

1:32trading examples of this plan in action.

1:34And so, please, this is by far the most

1:37valuable video that has ever been

1:39produced on this YouTube channel. So,

1:40take it seriously. This is not for

1:42entertainment purposes. Get a notepad,

1:43[music] get a pen, take notes, and

1:46please enjoy.

1:50Market structure is by far the most

1:52powerful technical analysis concept that

1:55you can use if you want to become a

1:56profitable trader. And yet, it's so easy

1:59to get it wrong. And honestly, that's

2:01why most traders fail. You see, as a

2:03trader, the most important thing that

2:05you need to understand [music] is which

2:07direction is the market likely to trade.

2:09If you can get that right, you

2:11drastically [music]

2:12minimize the chances of you losing

2:14trades and drastically maximize the

2:16chances of you winning trades. So,

2:18diving straight in, there are three

2:20phases in which the market is always

2:22trading through. On the one hand, we

2:24have the bullish expansion. This is

2:26where price is progressively getting

2:29higher, making a series of highs, higher

2:32highs, lows, and higher lows. A higher

2:35high is simply when a high breaks an old

2:39high. That is your direct indication

2:41that price action is bullish. Price is

2:43more likely to trade higher in the

2:45future than it is to trade lower.

2:47Already you have a statistical edge. And

2:49again, the same thing is when these lows

2:51are getting higher than the previous

2:53lows, right? That is again signs of

2:55bullish price action. Now eventually

2:56what happens in every trend is it gets

2:59exhausted and the first sign of a

3:01reversal is usually a consolidation. A

3:04consolidation is where we have a high

3:07and a low that is in control of the

3:09price action. Right? That is your

3:11current market structure range. Now what

3:13price does is it usually spends a decent

3:16portion of time just kind of moving

3:18sideways below the high but above the

3:21low. So not really giving us any clear

3:23direction. Is price going to continue

3:25trading higher? Is price going to trade

3:26lower? That sideways consolidation is

3:29usually the first sign of the next leg

3:32up or in many cases a bearish

3:34correction. Then usually we have what

3:37follows is bearish expansion. And the

3:40bearish expansion can be categorized by

3:42understanding when the bullish structure

3:45has shifted. It is not which many people

3:47make the mistake of when these lows in

3:50here start trading lower. It is when

3:52this low right here that is responsible

3:55for breaking the previous high and

3:57putting in this high right here gets

3:59broken and traded through. That is what

4:01we call a change of character. The shift

4:04from bullish to bearish, right? Think of

4:07the bull is in control and then the bear

4:09becomes in control of the two

4:11characters. We change character, right?

4:13And then we begin with the bearish

4:15expansion. So we put in a lower low.

4:17This low right here is lower than the

4:20previous low indicating bearish price

4:22action. Then we have a lower high. This

4:24high is lower than the previous high.

4:26And then we get the continuation break

4:28of structure. Lower low, lower high and

4:31lower low. From here, what you're

4:32expecting then is very simple. And your

4:34only job as a trader is to understand

4:36that price is now bearish. Therefore,

4:39how can I look at shorting? Right? And

4:41those are the things that we'll get into

4:42later in the video. What you're

4:43essentially expecting is when price

4:45retraces back up to these highs, I want

4:47to find an opportunity to get involved

4:49in short positions and then I can take

4:51the market down here. And so that is in

4:55essence the three phases of price action

4:57that we will continuously see play out.

4:59Now if we come here to the actual live

5:01market, you'll see this unfold in real

5:04time. What you can see here on Euro

5:06Dollar 30-minut time frame is that we

5:07have bullish price action. So we have a

5:09swing low down here that price puts in a

5:11high up in here. This high puts in a low

5:15down here. Right? Notice that this low

5:17is higher than the previous low. Then we

5:19have a break of structure with a higher

5:22high. Right? So now we have highs

5:24getting higher, lows getting higher.

5:26Then you can see we have this pullback

5:29before a continuation. We continue

5:31trading in this bullish direction. Then

5:33we have a pullback again. What do you

5:35think is your job at this point in time?

5:37We have this low. We have this high. Our

5:39structural range is this high to this

5:41low. You're looking to long the market.

5:44And so when price starts coming its way

5:45back down here, the goal is to get

5:47involved in this bullish move and take

5:49out this old high. Once this happens,

5:51you have a new low, right? And then a

5:54new high. Now look what happens. We've

5:57had a very aggressively long bullish

6:00trend. And then eventually what happens

6:01is we put in a high right here, right?

6:05And we have our low down here.

6:07So that is our current structural range.

6:11Now what happens is price starts to move

6:13sideways, right? We don't really get a

6:15real break of a high, a real break of a

6:16low. In fact, what you see here is that

6:19we get this wick, right? And for me, a

6:21wick is not a break of structure. That

6:23is what we refer to as a liquidation.

6:24You see, every time that you have a low

6:27and every time you have a high, when

6:30price approaches this level and it wicks

6:32above that level, you can likely expect

6:35that price will then reject that area

6:37and trade in the opposite direction. And

6:39the reason for that is purely based off

6:42of the order flow. Price gets above this

6:44high and then the thing is is no one is

6:46willing to now buy more orders above

6:48this high. And so that's why we have the

6:50wick, right? And price closes back down

6:52here. And that essentially tells you

6:54with just that wick that price is not

6:56willing to trade higher. And because of

6:58that, you can already indicate weaker

7:00price action. So if I know that a wick

7:02is a sign of weakness as it expands out

7:04of a range, then why would I want to buy

7:07out of that range? It's going to likely

7:09go in the opposite direction. The same

7:10is true on the sell side, right? You can

7:12see we get the wick and then we have a

7:14reversal. Right? If we then look at the

7:15low down here, ultimately what happens?

7:18We fail to break through this low. We

7:21wick the low. That to me is a sign of

7:23weakness, right? It's a sign of

7:24reversal. And then you can see we end up

7:26reversing and we come back up here. So

7:28we can see here we're getting wicks of

7:30the high and wick of the low, which is

7:32really just indecisive price action.

7:34This is a consolidation phase. And the

7:36likelihood is in many cases when we get

7:37this type of consolidation is that a

7:39reversal is most likely coming because

7:42price is unable to keep trading higher.

7:44The reality is is if market structure is

7:46continuing to go bullish, there would be

7:47no problem trading through this high and

7:49continuing like we have done many times

7:52in the past. We trade above, we

7:53continue, we trade above, we continue

7:55here. We try to trade above and we get a

7:57rejection. That simply tells us that the

7:59likelihood is is that we're going to

8:00reverse. Again, if you look at this

8:02liquidity concept, you can see all the

8:04time when you have a higher low that

8:06gets liquidated. Right? Here we have a

8:07low. Look what happens. Price comes into

8:09that low, it wicks below that low and

8:12reverses. Price comes into the high, it

8:15wicks that high and then it reverses.

8:17Even down to the minute micro details,

8:20right? We have a high here. Price comes

8:22up to this high, wicks up that high and

8:25then reverses. So, always pay attention

8:27to when price is wicking a low or

8:29wicking a high and look at that as a

8:31sign of reversal. Only when we can close

8:34below this low down here can I then say

8:38great, now we have shifted. We are no

8:40longer bullish. We are bearish.

8:41expecting lower prices and we can see

8:44how that unfolds, right? We become

8:46bearish, price trades aggressively to

8:48the sell side until we find a low, we

8:51have a retracement, we find a high, we

8:53have a continuation, we find a low, we

8:56come back up, we find a high, and then

8:58we continue trading down here. Low,

9:00high,

9:02low, high, and then this brings us to

9:04right now's current day price action. I

9:06would expect that today is most likely

9:08going to trade lower. It already gives

9:09me my indication. That is the importance

9:12of market structure, right? It's going

9:14to tell you the directional bias. But

9:16here's the catch. Now, I've made that

9:18sound simple and look simple because in

9:20all honesty, it is. But there are a

9:21couple of things that are messing people

9:23up and this is one of them. It's this

9:25idea that there is a real market

9:28structure and it looks like this. And it

9:30confuses the crap out of people. What we

9:32have is a high, we have a low, which is

9:37what you've been taught. We have a

9:38higher high. Amazing. very easy to

9:40understand, right? It's what you've been

9:41taught. But then it starts getting

9:43complicated because you start having

9:44pullbacks that look like this. And now

9:47what a lot of people do is they look at

9:48this and they're like, "Okay, we have a

9:49low. We have, okay, this high is lower

9:51than the previous high. Okay, we have a

9:53lower low down here. A lower high. Okay,

9:56we're obviously bearish, so let's sell

9:58the market." And so what do they do?

9:59They start selling the market down here,

10:01not realizing that they're looking at

10:03the wrong structural points. The

10:05critical mistake that traders are making

10:07when it comes to market structure is

10:09they don't understand which structure,

10:11which highs, which lows to use. And

10:12that's what I'm going to break down to

10:13you now. You see, this is the low that

10:16breaks through the high. This is the

10:18high that begins the reversal. So,

10:19that's all you need to have. You have

10:21your swing low and you have your swing

10:23high. We've broke structure. So, we are

10:26bullish. Now, until price breaks below

10:28this low, we do not shift bearish. We

10:31only look for longs. The problem is is

10:33many traders are thinking that price is

10:35bearish because of these lows, but

10:36they're reading the wrong market

10:38structure. They are reading internal

10:40structure. You need to be focused on

10:42these swing points in here. You can only

10:45get the green flag to go long and

10:47continue when you get, okay, we're

10:49bearish internal. Great. Now we're

10:52bullish internal. Now it's the time to

10:55look for longs. And then you can see

10:56price breaks structure. So now we break

10:59structure here toward the buy side. Now

11:01here's the other kicker. This is now our

11:03swing low. This up here is our swing

11:06high. And so we're expecting longs.

11:08We're expecting that price will respect

11:10this low and it will target this high.

11:12Again, here's another fatal mistake that

11:14traders make is they look at this.

11:15They're like, "Okay, we have a low.

11:17Okay, we have a higher high. Great.

11:18Bullish. Okay, higher low, higher high.

11:21Okay, so here's my low. Here's my high.

11:24Oh, look, we break through this low.

11:26Okay, now I'm going to look for sells

11:27cuz we're bearish." Wrong. until we

11:30break this low. It is the low the lowest

11:33point that structure comes before

11:35breaking structure again. It's this low

11:38right here. Many traders are getting

11:39trapped on the wrong side of the market.

11:41That's why there's so many failing

11:42traders cuz they don't understand how to

11:44read market structure. You have to use

11:46this low and this high. So when this low

11:48gets taken out, that for me is like

11:50great. That's an inducement, right?

11:52Because so many traders are now going to

11:53be looking to go the other side. But for

11:55me, I'm still very much bullish. And so

11:58when I get this shift above here, that's

12:00my green light. And then I patiently

12:02wait for price to come back in. And then

12:03where do you think that price is likely

12:04to go to next? The next logical target

12:07is for price to run toward this high.

12:09That is real market structure. It looks

12:11confusing, but it's very simple. It's

12:13not really much difference what we just

12:15covered in here. We have these

12:16pullbacks. It's just that inside of

12:17these pullbacks, there are little

12:18pullbacks that get you confused. Let's

12:20go and take a look at what this looks

12:22like in the actual market. So imagine

12:24for a second that we have a low down

12:26here. We have a high here, a low here,

12:29higher high. So, we're bullish, right?

12:31Let's just say we're bullish. Now,

12:34here's the thing that throws people off.

12:36For me, it goes like this low here.

12:38Here's what people think. People use

12:40this high and then this low and then

12:42this high and then when price puts in

12:44this low down here, they're like, "Okay,

12:45great. We've shifted bearish. Let me

12:47look at shorting." It's like, no, it's

12:49not this here. It has to have at least

12:51three candles that pull back. So, it's

12:53high, low, higher, high, higher, low.

12:56Right? Again, same thing. People look at

12:58this, they're like, "Okay, oh, low. Oh,

13:00high. Oh, new low. Okay, bearish." It's

13:03like, no, this is the low.

13:06This is the high. If it's above this

13:09low, it's bullish. Don't use anything

13:11else. Everything else is internal. It's

13:13like all these traders are looking at

13:14these structural points, trying to use

13:16these and these, and it's like, no, none

13:19of that is structure. It's just noise

13:21for you to get distracted in. If it's

13:23above this low, it's bullish. Until it

13:25breaks above this high, this is a low in

13:27control. And then for me, it's higher

13:29high. But again, many people are looking

13:31at this like the, oh, new high. Oh, new

13:33low. Oh, new high. It's like, no. It's

13:35like when we break this high, this is

13:37the low. So now the structure is like

13:39this from this low to this high. And

13:43then we break structure. You can see

13:45that we're respecting our structural

13:46levels. Then what happens? Price comes

13:48back. We put in a low. We go again. We

13:50find a high and then we have high to low

13:52and price cannot break out of this

13:54level. We wick that doesn't count. We

13:56wick that doesn't count. When we break

13:59and close, that's good. So now we go to

14:01bearish. And so again, my structure

14:03becomes low, high, low, high,

14:10low, high, low, possible high. We don't

14:14know until it breaks it. What do many

14:15other traders look at? Many other

14:16traders are looking at it like this.

14:19Okay. Low, high, low, high, low, high.

14:24It's like you're just going to confuse

14:25yourself. That's exactly why you get

14:26stuck because you're using all of these

14:29rubbish terms for market structure. No,

14:31that none of that is market structure.

14:33This is market structure. It's the

14:35external swing points. Forget the

14:37internal. The most important part of

14:38trading is being on the right side of

14:40the market. And yet, you're getting

14:42caught on the wrong side of the market

14:43because you're not doing this. You're

14:45using all of these internal structural

14:47points. Just don't do it. Let me

14:48interrupt you just for one second. Just

14:51before we move on to the next idea, I

14:52want to share something with you that

14:54will make your trading a hundred times

14:56easier and simpler. And yes, I truly do

14:58mean that. Over the past few years,

15:00you've probably come to know me as

15:01someone who is very big on market

15:03structure. You're watching right now a

15:05market [music] structure breakdown. Now,

15:06one of the biggest issues that I have

15:08seen traders face time and time again,

15:10which they keep coming to me with, is

15:11this is great. Market structure is

15:13incredible, but how do I know how to

15:14accurately draw a high? How to

15:16accurately draw a low? How do I know

15:17what's an actual breaker structure

15:19versus what I think is a breaker

15:20structure? But really, it's [music] not.

15:22Basically, how do I actually have rules

15:24in place that make market structure

15:27completely accurate [music] and I've

15:29actually gone and created an entire

15:30solution for this and I just want to

15:32quickly show you just for a second. So,

15:33here we are. Euro dollar. This is

15:35ultimately what price [music] looks

15:36like. And you can see in the top left

15:37here we have an indicator. And if I just

15:39literally toggle this indicator, it will

15:41give me all of the highs and lows, the

15:44real highs and lows with the real

15:45changes of characters and breaks of

15:47structures [music]

15:48that completely tell me what the

15:50direction of price is, what the market

15:51structure actually, as you can see here,

15:53it gives a little symbol up in here to

15:55tell us what the structure is. And so

15:56you can see if you're looking at this

15:57price, for example, price looks to be

15:59bullish, right? Who in the right mind

16:01would know that this little area in here

16:03is a pullback. If you didn't, you'd

16:04probably trying to buy all of this price

16:06leg. But no, this indicator will show

16:07you we literally have a change of

16:10character and then a break of structure,

16:12a break of structure and we continue

16:13bearish all the way down here and we

16:15knew about it way ahead of time and then

16:17actually we've just recently shifted

16:19bullish and it has the external

16:21structure and all of the internal

16:22structure as well. And you can see we

16:24shift bullish and price [music] begins

16:26to trade higher and higher. And so we've

16:28literally created a completely

16:30rule-based indicator that you can use

16:32that will make your market structure and

16:34your trading hundred times easier. Feel

16:37free to check it out. I'll leave the

16:38link in the description. It'll give you

16:39everything you need to know about the

16:40indicator and how it actually works.

16:42Enjoy the rest of the video. The next

16:44super important point that I need to

16:46make is that you have to combine

16:48structure with supply and demand. Market

16:50structure alone won't work. Fibonaccies,

16:52it's not going to work. You need to use

16:54supply and demand. So what is supply and

16:56demand and how do you combine it with

16:57structure? So you can see here that we

16:59have a low, a high, we make a new low

17:04and then we make a new high. Now notice

17:06in here we have this area of price where

17:09price has a lot of volume before an

17:11aggressive move. Price comes back up, we

17:13have another aggressive move. We want to

17:15look at these areas of demand, right?

17:18What is demand? Demand is, you know, a

17:20group of people or one institution

17:22flocking to buy a lot of something at

17:24one price. Therefore, it moves higher.

17:26Simple supply and demand and economics.

17:28If there is more demand than there is

17:31supply for that thing, the price will

17:32increase. So, just look at where you

17:34have sharp aggressive price increases.

17:37There you will find demand. And so, what

17:39you want to be looking at is when you

17:40have these large impulsive legs, look at

17:43the volume that took place just before

17:45that impulsive move. There you will find

17:46your demand. The same can be true for

17:48supply. If you look at supply, you just

17:50want to find the areas of price that we

17:52were trading at before we have the

17:53aggressive move. And there you will find

17:55supply and you'll see interactions with

17:57that and then demand comes in. Right? So

17:59what you need to do is when you see

18:01market structure you need to then

18:04identify areas of supply and demand. And

18:05now I'll show you what that actually

18:07looks like. So if we come back into this

18:08same price action and we apply the same

18:10principles here's what we'll find.

18:12Remember we have our market structure as

18:14high low

18:17right to high to low to high low high

18:23low high. Now you need to apply supply

18:25and demand. So for example here we have

18:27a bullish move in here. Now where's the

18:31bulk of the volume before that happens?

18:33It's in here. So there's your demand.

18:35You want to wait for price to come back

18:36into the demand before you can long.

18:38Here we don't have price come back into

18:40the demand. Okay fine. Then we see price

18:42pull back and then aggressive run up.

18:44Where's the bulk of the volume happen

18:46before that happens? It's in here,

18:48right? This is the area where we have

18:50the transactions and then price

18:51aggressively moves. So there's your

18:53demand. So after you get the run of that

18:55high, you wait for price to come back to

18:57your demand. Here's a critical mistake

19:00that a lot of traders make as well is

19:01when they're trading market structure,

19:03they think, "Okay, cool. Let's say

19:04that's my high. Then I should just buy

19:06when price breaks above it." So they buy

19:08here and maybe they put their stop loss

19:10below here. The problem with this is

19:12like number one, your risk-to-reward is

19:14low and number two is like where do you

19:16target? You don't have an area of price

19:18where you now expect that price should

19:20trade towards. You don't. You're just

19:22guessing. And so maybe you're going for

19:24let's say a 1 to three riskreward and

19:26price comes back up here and now all of

19:28a sudden you move your stop loss to

19:29break even and price comes out at break

19:30even and then it goes in your direction,

19:32right? Or maybe you go for a oneto one

19:34and great you make it. But how many of

19:35those trades are you going to make? So

19:36the problem with those traders is they

19:38they're buying too early. You don't want

19:39to be the first one to the party. It's

19:40like a game of poker. With trading, you

19:43have the ability to wait for the market

19:45to show you its hand, then you can bet

19:48chips. That is the game of trading. You

19:50see, trading is very similar in nature

19:53to gambling. But there are gamblers out

19:55there, professional poker players, who

19:57make millions and millions of dollars

19:59because they understand probabilities

20:01and they understand psychology. Well,

20:02the market is not too different. It's

20:04probabilities and psychology. The bonus

20:06with trading is you can wait for the

20:09market to show you its hand, right?

20:11Sometimes it may bluff you, but a lot of

20:13the times it will show you what it's

20:14going to do before it does it. And then

20:16you can decide whether or not you're

20:17going to take that bet. I mean, imagine

20:19for a second you were playing a game of

20:20poker, me and you, right now, and let's

20:22say I bet $1,000. And before you decide

20:25whether you want to match that bet, you

20:27get to see what cards I have and what is

20:29on the table. And then you can decide,

20:31well, either I have a better hand than

20:33him or he has a better hand than me. If

20:34you have a better hand, you can bet your

20:36money. If you don't have a better hand,

20:37like no, fold. The market gives you the

20:39chance to do that. So that's what supply

20:41and demand and market structure

20:42combination is all about. It's you wait

20:44for the move and then you wait for price

20:46to come back into this area. So then

20:49then you can catch the long move in

20:51here. You don't have to enter the market

20:53early. And sometimes that may mean that

20:55you miss out on opportunities because

20:57price goes and it doesn't come back.

20:58That's fine. That's part of the game of

21:01trading. It's about an edge. So same

21:03thing happens again right now we have

21:05multiple areas where price increases.

21:08You have we have aggressive move in

21:09here. We have consolidation aggressive

21:11move consolidation aggressive move. So

21:12we have

21:14phase one of demand really and truly is

21:17this entire level in here right from the

21:19sell down here to the buy. What happens?

21:21We have aggressive move out. We come

21:23back into the demand and then we trade

21:25away. Then we have a new demand and that

21:27new demand is pretty much this range

21:29here. Right? This is the next level

21:31where we get consolidation and then

21:32large moves to the upside. That's

21:34demand. Price goes up, we consolidate,

21:36and then we go aggressively again to the

21:40upside. That's demand. Now, notice that

21:42price doesn't come back and tag us in

21:44here before it goes. That's fine. You're

21:45not going to get that every single time.

21:47Then what we have is the next phase. We

21:49have aggressive demand. So, what we have

21:51here is we have consolidation, a small

21:53aggressive move, which is demand in

21:55here, and then price comes into that

21:56demand, and then we have aggressive move

21:57again. Now the demand is where? From

22:00this area here to here. You could also

22:02in this instance use this entire leg of

22:05price, right? This is the consolidation

22:08and then you have the aggressive demand.

22:09And so it's like okay, you just wait for

22:11price to get back into that area where

22:13price moved from because this is the

22:16area where the buyer sets into the

22:19market and the market became imbalance.

22:21Market seeks equilibrium, right? Comes

22:23back into balance and then we get the

22:25next leg up. probabilities of market

22:27structure and that is essentially how

22:29you combine supply and demand. So it's

22:31very simple. The final principle that I

22:33want to share to you before we put this

22:34all together is confirmations. You see

22:37it's one thing having market structure.

22:38It's important. It's great. Alone it's

22:40not going to help you. Then you add

22:41supply and demand and now it becomes

22:43even more powerful but alone it doesn't

22:46help you. Imagine you have market

22:47structure with supply and demand plus

22:50confirmations. Now you have a cheat

22:52code. So what is confirmations and how

22:54does it look? Well, same thing applies,

22:56right? We have a low here, a high. We

22:59have a new low and a new higher high.

23:02So, the market is bullish. We have a

23:03breaker structure above the high is in

23:05here. Breakup structure. Great. We are

23:07bullish. We are looking for longs.

23:09Second thing that we do is we find our

23:11area of demand. So, here we have a very

23:13aggressive and bullish move up. But just

23:15before that happens, we have an area of

23:17consolidation where we may see

23:19institutions or certain individuals

23:20loading up on their positions where the

23:22demand really kicks in. Right? So this

23:24is our area of demand. Now here's the

23:26catch, right? Let's say that this in

23:28dark here is the 15minut time frame. And

23:32let's say in the dotted line here is the

23:341 minute time frame. What's going to

23:36happen is when you have price action

23:39like this on the 15 minute, when the 1

23:41minute comes back here, it's going to be

23:43bearish and it's going to look like

23:44this. Right? So on the 1 minute time

23:47frame, as price approaches your area of

23:50demand, you simply apply patience. When

23:52we get in here, you can see that we're

23:53bearish, right? Lower low, lower high,

23:55lower low, lower high, lower low,

23:58consolidation, lower high, lower low.

24:00Inside of our demand, you simply wait

24:03for this confirmation. When this high

24:06gets broken in here, now you have

24:10literally a cheat code because this is

24:12really what my model is, right? This is

24:14honestly one of my most powerful trading

24:16models. Now, you have confirmation on

24:17top of everything. So, we already know

24:20that probability indicates that we are

24:22going to trade into this high. We

24:23already know we're bullish. We already

24:25know that we're trading from an area of

24:26demand. Now, we've confirmed that we're

24:29going to trade higher because price is

24:30trading higher. We've confirmed that

24:32this demand area is valid because we're

24:34seeing demand come back in from that

24:36same level. Now, all you have to do is

24:37trade. And so, again, a big thing that

24:39traders do wrong is they try to trade

24:41like this 15-minut time frame, bullish,

24:44find a demand area and trade like that,

24:46right? one to two risk-reward or maybe

24:48sometimes what you'll find is that you

24:50have multiple areas of demand in the

24:52same price leg. Now what do you do when

24:54you wait for the lower time frame you

24:55have something different because now

24:57what I can do is I can use the same

24:59structure and I can use this same let's

25:01say area of demand on the 1 minute time

25:03frame or the 5m minute time frame and I

25:06can take this trade the same trade idea

25:09but different entry after confirmation.

25:12So now I have by adding this

25:13confirmation principle which so few

25:15people do I am increasing my

25:17risk-to-reward from 1 to two to 1 to 5

25:21and I'm further confirming the

25:24likelihood that I win this trade. So

25:25I've increased the likelihood that I'll

25:27win and I've increased how much I'm

25:28going to win just by adding this one

25:30principle and that is essentially it.

25:31And then you patiently wait for price to

25:33come back in and then take you away to

25:35your direction which is already mostly

25:37confirmed.

25:41You're struggling to understand

25:43liquidity because you want to become a

25:45consistently profitable trader and you

25:48know that liquidity could be the missing

25:51key between you and profitability. But

25:53up until now, you're lost and confused

25:55because everywhere online, everybody

25:58seems to make liquidity such a

26:00complicated idea. Well, stick with me

26:02because in this video, I'm going to

26:04simplify liquidity to a point where it's

26:06very easy to understand. In this video,

26:08we'll cover what is liquidity and why it

26:12works. Then, we're going to cover the

26:14most common types of liquidity and how

26:16to identify them. Then I'll walk you

26:18through the biggest mistake that I see

26:20traders make when it comes to liquidity

26:22and how you can avoid making that same

26:24mistake. Okay, concept number one and

26:27again very very simple concept is what

26:30is liquidity in trading? Right, you

26:31first and foremost have to understand

26:33what exactly it is that you mean by

26:36liquidity. So what do we mean by

26:38liquidity in trading? Simply put,

26:40liquidity just refers to money. When you

26:42want to identify areas of liquidity, you

26:45need to ask yourself where is the money?

26:47And money in the markets can only come

26:50in the form of three different ways. It

26:52can only come in the form of entries,

26:56stop- losses, or take profits. Every

26:58time you get an entry, you deploy

27:01liquidity into the market. Every time

27:03you hit your stop-loss, you deploy

27:05liquidity into the market. Every time

27:07you hit a takerit, you deploy liquidity

27:10into the market. and so does everybody

27:12else. So when asking yourself how to

27:15identify key areas of liquidity, what

27:18you really need to ask yourself is where

27:20is everybody's orders, where is

27:22everybody's take profits, and where is

27:24everybody's stop losses? And that is

27:26exactly what I'm going to show you. So

27:29this is a very simple diagram of

27:32understanding the most common liquidity

27:34concept, which is dumb money. Right?

27:37What you want to be thinking about is

27:39where is everybody's stop losses? Where

27:41is dumb money stop losses, right? Where

27:44are their orders? Where are their stop-

27:46losses? And if any of them are in

27:48profitable positions, where are people

27:50looking to take profits, right?

27:51Liquidity is actually a very

27:53psychological thing. You have to

27:55understand that groups of traders form

27:58collective biases based on trading

28:01ideas, ideologies, and strategies. So

28:04many different traders trade many

28:06different strategies collectively. So

28:08you can identify these strategies and

28:10begin understanding where all the

28:12liquidity is. If we know that liquidity

28:14equals money, stop losses, entries, take

28:16profits, we need to identify where are

28:18people putting their orders, where are

28:20people putting their stop losses, and

28:22where are people putting their take

28:23profits. And so here are some very

28:25simple ideas of how you would identify

28:27some liquidity. Then we'll go and take a

28:29look at what this looks like in the

28:30markets. So you can see here we say you

28:33know we have a um price leg push up pull

28:36back push up pull back right so you can

28:38quite clearly see that you know from our

28:40landscape smart money we're bullish

28:41right we can see we have bullish market

28:43structure but what we have is we have

28:47this trend line forming down here. So

28:51there are a lot of traders that are

28:52looking at this and they're seeing this

28:54trend line and again these are the trend

28:56line traders and many of these traders

28:59when they're looking at this market they

29:01have an ideology of wanting to go long.

29:04Their trading strategy indicate

29:06indicates to them that price is going to

29:08continue trading higher. So what do they

29:11do? Well, they're going to wait for one

29:13more touch of this trend line. They're

29:15going to try and you know probably enter

29:17into try to get the next touch. So we

29:19have one, we have two, we have push up.

29:21So maybe they have their entry somewhere

29:24in this region in here. Maybe they're

29:26looking at, you know, this old low down

29:29here as an area in which they could

29:30potentially look at putting their stop

29:32loss. And where do you think they're

29:33probably going to target? Well,

29:35psychology indicates that many traders

29:38use old highs, old lows for their

29:41take-profit placement and their

29:42stop-loss placement. Think about it.

29:44Think about you as yourself. Where do

29:46you place your stop losses? You place

29:49your stop losses at some sort of low

29:52which you think should be respected. You

29:54place your takeprofit at some sort of

29:56high you think should be disrespected.

29:58Well, all traders pretty much think very

30:01similarly. So, this is what the typical

30:04kind of trend line trader who would be

30:05looking at this would be looking at.

30:07Then you have the opposite side of the

30:09spectrum. you have a certain caliber of

30:11trader who are who's looking at this

30:13market and says, "Okay, well, we've been

30:15we've been trading high for a long

30:17amount of time now and we begin to

30:20reject this random key level, right?

30:22This random key level that they created

30:24from the past that has no relevance of

30:26current price action, but let's just say

30:28it means something." They they have

30:30these key areas mapped out. I see. Okay,

30:32price has rejected from this key area.

30:35And then price has pulled back into this

30:37same area and rejected it again. So that

30:40must mean that this is a key level. This

30:42is an area of resistance. This is a

30:44double top. This is an area that is

30:46protected. So I want to get involved. So

30:49they tried to get involved in some sort

30:51of short position, right? So they may

30:53put their, you know, their entries up at

30:55this level. when price comes back,

30:57they're probably going to put their stop

30:58losses at the highs up in this level.

31:01And then they're probably going to put

31:02their take profits, you know, anywhere

31:03kind of some old lows, um, wherever they

31:05may put their take profits. But then

31:07you're going to look have something that

31:08looks a little bit like this, right?

31:10You're going to have some traders who

31:11are looking to long because of this

31:13trend line. You've got some traders who

31:14are looking to short because of these,

31:16you know, relatively equal highs or this

31:18double top or this area of resistance,

31:20right? And then what else do you have?

31:22Well, maybe the market then gives you

31:24something like this. have a little bit

31:25of a reaction, right? And then what

31:28happens? What happens is a new caliber

31:31of trader also enters the market. A new

31:33area, a new trader enters the market and

31:35goes, "Oh, look, you know, we are we

31:38have this trend line. We're we're

31:39bullish. We have structure. They have an

31:41understanding of structure. We have some

31:43great structure. Amazing." Um, and now

31:45price has traded out of here. We've come

31:47back in. Now we're having a little bit

31:48of a reaction. So, what am I going to

31:50do? I'm going to long this reaction,

31:52right? So, then they're trying to get

31:53involved. And so we can literally just

31:55paste this again. Now we have another

31:57caliber of trader trying to get

31:58involved. Put in their stop loss where

32:00probably at this low entry somewhere

32:02around the same level take profit

32:05somewhere at this high. Right? That's

32:07another type of trader. Then again you

32:10may have more of the same trader. Let's

32:12say trend line traders, right? So you've

32:14got one touch, two touch, three touches.

32:17They're looking at getting involved and

32:18they're waiting for what? they're

32:21waiting for some sort of reaction from

32:23this trend line point and so when they

32:25begin getting this little reaction again

32:27that is when they may jump in the market

32:29and where they're going to put their

32:31stop losses in these similar areas right

32:33so what I'm kind of building the

32:35narrative for you is understanding that

32:38something as simple as two legs on a

32:41price leg can have so many different

32:43traders getting involved in the market

32:45for so many different reasons and it's

32:46your job to identify who those traders

32:49are what strategies they likely trade,

32:52where their entries likely are, and

32:54where their stop losses likely are. And

32:56it sounds difficult, but it's actually

32:59very simple. All I've gone through is a

33:00trend line trader, a resistance type

33:03trader, a double top, a double bottom, a

33:06trend line confirmation, right? Very,

33:07very simple level trading strategies

33:10that a lot of traders try to trade. And

33:13these types of things, these patterns

33:16that you see, they're set up

33:19intentionally. They're set up on purpose

33:22because smart money knows that the

33:24information that you're getting online,

33:26the information that your broker's

33:27feeding you, it's all retailbased

33:30concepts or dumb money based concepts.

33:32It's all pattern recognition. It's all

33:34there's no causation to the price

33:36movements. Everything is, you know,

33:38trying to identify something based on

33:40something that doesn't exist. And so it

33:43sees all of this liquidity that's

33:45building all these different trade type

33:46of traders that are trading these

33:48outdated styles of trading with all

33:50their stop- losses and their entries.

33:52And Smart Money knows this, right? And

33:54so we have all these different pockets

33:55of liquidity in just one random

33:58scenario. And so now what you have is

34:00you have, you know, a bunch of stop-

34:01losses in here. You have a bunch of

34:03takerit levels in here, right? You have

34:06a uh, you know, probably a bunch of

34:08take-profit levels in here from sellers.

34:10Then what else are you going to have?

34:12Well, any market movement that we get

34:14from here on out, now you've got the

34:16traders that are kind of waiting, right?

34:17The breakout traders or the break and

34:19retest traders. And what they'll be

34:21waiting for is some sort of direction.

34:23For example, if price continued trading

34:25higher and broke out of this high, so

34:28many traders would jump involved and

34:30start longing the market up in these

34:32regions. When it breaks out, they long.

34:34They may put their stop loss below this

34:35low. They may put their stop loss, you

34:38know, inside of some internal low inside

34:40of here, but basically they are going to

34:42be longing and they are going to be

34:43putting stop losses in these areas as

34:45well when it breaks. Right? Again, you

34:47have the same thing on the opposite

34:49side. When the market, let's say, has

34:51some sort of continuation and then it

34:54rejects from here and it takes out these

34:56lows. What you're going to be getting is

34:58you're going to be getting all the

35:00breakout traders that are trading this

35:02breakout and they're getting involved in

35:04the market here. their stop loss goes

35:06above these highs in here, right? Um

35:08their takerit goes, you know, down here.

35:11And then again, you have the the break

35:13and retest traders, right? Those are the

35:14ones that wait for the price to break,

35:16but then they wait for it to come back,

35:18right? And then they go to short. And

35:20it's the same thing. They have their

35:22entries in here, their stop losses up

35:24here, their take-profit levels down

35:26here. So you can see just in this one

35:28little schematic how many different

35:30traders would read the same piece of

35:33data and all come to different

35:35conclusions but primarily what we're

35:38seeing is they're all putting their

35:40money on their bias right they're

35:42putting their money in these levels now

35:45what I want to do is run you through the

35:48simple framework in which I use and is

35:51which you know what smart money concepts

35:53is about and how we would interpret this

35:56exact act same price action so much more

35:59simple just by understanding liquidity

36:03and understanding all the other types of

36:05traders and where their stop losses are

36:08and it goes something like this right

36:10first and foremost you have to

36:11understand you know why is that

36:14liquidity why before a very big move and

36:17this is something you've probably seen

36:19right you may have you may have been

36:21long before you had a bias to go long

36:24and you had your stop loss in here and

36:26then price just come into your stop loss

36:28before going in the direction that you

36:30wanted it to go. And you're probably sat

36:32asking why does that always happen to

36:34me? This is the reason. The reason is is

36:38because before smart money move the

36:40price aggressively in a certain

36:43direction, right? Which is their bias.

36:45That's their intention. It's their

36:47footprint. Before they do that, they

36:50will engineer liquidity on both sides of

36:53the market for this purpose. You see,

36:56smart money are very very big players.

36:59When they move, they move a large amount

37:01of money and the market is very simple

37:04marketplace. It is pretty much for every

37:07buy order, there needs to be an equal

37:10sell order on the other side. And so

37:12because smart money have so much money,

37:14let's say they wanted to, you know, buy

37:16Euro US dollar long-term, well, they

37:20would need to get their orders filled at

37:22the price they want to get their orders

37:24filled at. So let's say they want to get

37:25their orders filled at this level here

37:28and they want to buy here. They need an

37:30equal amount of sellers to be present at

37:33that level so that they can get their

37:36orders filled. So what they do is they

37:38create artificial dealing ranges, right?

37:42They'll push price in a certain

37:43direction to trick people into having an

37:47opinion, having a bias. Because when

37:49they have that bias, like we've just

37:51looked at all these different traders

37:52that are looking at this market, and

37:54lots of them have stop- losses here,

37:56entries here, take profits here. When

37:58they've been able to manipulate their

38:00thinking to put in their liquidity into

38:02the market, then they're able to use

38:05that liquidity to get a better average

38:08of their orders filled at the prices

38:11they want to get their orders filled at.

38:13Because if they wanted to buy and they

38:15first sold, they created these patterns.

38:19They created these little equal lows

38:21here. They had the little push up to

38:24make everybody, you know, ready to want

38:26to buy in here. And so they have their

38:28stop losses down here. And then anyone

38:30who sees it break now wants to sell,

38:32they do that so that then when when they

38:35move price into here into where they

38:37really want to buy from, right? Then all

38:40of these sell orders from the stop-

38:43losses of the buy orders from the

38:45sellers who are getting involved because

38:46they think prices go lower. They absorb

38:49all of that liquidity with their buy

38:52orders. Right? That is the game. So that

38:55is why they manipulate price. It's not

38:56just this kind of like conspiracy theory

38:58as why it works. No, there is literally

39:01the reasoning and justification behind

39:03why price does it. So how would we view

39:05the same market through the lens of

39:07smart money? Well, number one,

39:10directional bias. That's always number

39:12one. We need to understand what is the

39:14direction of the market. Because one

39:17thing that smart money can't hide is

39:18they can't hide their intention. They

39:20can't hide their footprints. Because the

39:23reality is is when they move the market,

39:25the market moves. You can't hide that.

39:28So if price is trending in a certain

39:30direction like you can see here, right?

39:31We have a swing low, swing high, higher

39:34low, higher high. When price is put in

39:36this structure, it's undeniable that the

39:40market is bullish and that it's going to

39:42have higher prices because that is their

39:44intention. It's undeniable. They've

39:46already shown us. They can't hide it.

39:49Right? So our directional bias is our

39:51first and foremost bias that we need to

39:53have. So in this scenario, you can see

39:54that we're bullish. So our directional

39:56bias is bullish. We are looking for long

39:58positions. But then when you see price

40:01begin to build these little internal

40:04ranges, what we see is we see trend line

40:07liquidity across these lows, right? So

40:11we can put liquidity across here. We see

40:13we have all this liquidity down here.

40:15Trend line liquidity. We have equal

40:17highs across the highs up in here. We

40:21have, you know, relatively equal lows in

40:24these areas in here, right? Liquidity.

40:27And then we have probably some sort of

40:29reaction in price that pushes more

40:32buyers into the market, stop losses

40:33under here. We identify all of this in

40:36the same lens that I've just shown you

40:38when we mapped out all of the dumb

40:41money. And then we identify okay where

40:44is the area in price where we can avoid

40:46all of that liquidity that includes

40:49taking out all of that liquidity and is

40:52below that area of price. We would

40:54identify an area of interest, right? An

40:56order block, an area of interest

40:59below areas of key liquidity and then we

41:03wait for everybody else to get stopped

41:05out or most people to get stopped out.

41:07And then when price gets into our area,

41:09we wait for some confirmation. And then

41:11we go long right into here. And then we

41:15wait for these guys to get manipulated.

41:17We wait for these guys with the stop

41:19losses here to get manipulated. And then

41:21we get in with the real move of smart

41:24money and we just target the next

41:27logical area of price. And that is

41:29literally what my smart money model

41:32looks like. And that's something that

41:33we'll get into in just a moment. So to

41:36recap, liquidity is money and money is

41:39stop- losses, orders, and take profits.

41:41You want to see where the liquidity is,

41:43get in the minds of dumb money. Where

41:45are they putting their orders? What

41:47trading strategies are they using? And

41:49once you can see that in the charts, the

41:51trend lines, the equal highs, the

41:52support, the resistance, right? Once you

41:55can see those patterns, then you can

41:57begin to ask yourself, where would those

41:59guys put their entries, their stop-

42:00losses, and the takeprofits? And those

42:02are the pockets of price you need to

42:04mark out as your liquidity because that

42:06is where there is resting money sitting

42:09and smart money like a shark is coming

42:12for those pools of liquidity. So why

42:15everyone gets liquidity wrong and what

42:17you need to do to make sure that you

42:19don't fall into this trap. The key is is

42:22they have no context. Right? So if we

42:26look at this diagram that we have right

42:27here, what we can see is we can see that

42:30you know we have equal lows down here,

42:33right? So this is an area of you know

42:35old level of support or equal lows. So

42:38we know that's liquidity. What do we

42:40have? We have trend line liquidity

42:42building,

42:44right? We have a lot of trend line

42:45liquidity building. So again, we know

42:47there is a lot of liquidity. And even if

42:49you zoom out, you can see on the bottom

42:51side of things, you can see actually

42:53this is one big trend line as well. So

42:55we have one big trend line. We have

42:57micro trend lines within it. We have

42:59equal lows. We have again this large

43:01trend line down here. And what else do

43:03we have? We have equal lows across here.

43:07Right? So more liquidity and we have

43:09equal highs across here. So more

43:12liquidity. So these are our pockets of

43:14liquidity is what I like to call them.

43:16These are the areas in which there is

43:17liquidity. But the issue that a lot of

43:20traders make and maybe you're making

43:21this yourself is you think that because

43:23you have these areas of liquidity mapped

43:26out that now you think you know where

43:28the market is going but you lack

43:30context. You think that just because

43:32there is liquidity in a certain area

43:34that that means price has to go there or

43:36price will go there and price will go

43:37there now and that's where many traders

43:40are wrong because what they'll try to do

43:42is they will try to trade solely based

43:45on understanding liquidity. They'll say,

43:46"Okay, I see that there are stop losses

43:48in here. Therefore, the market is going

43:49to trade there." When the reality is is

43:52you need context. Everything needs to be

43:55seen through the lens of context.

43:57Because here's how I would see it. If I

43:59look at this market right now, I would

44:01tell you step number one, always, always

44:04form your directional bias first like

44:07I've just explained to you. So, it would

44:09be step one, identify our key areas of

44:12structure where we trended, right? So,

44:14we have swing low, swing high, swing

44:17low, higher high, higher low, higher

44:19high, higher low, higher high. Great.

44:22We're bullish. Now, where is my most

44:25recent swing range? Right, I need to

44:27find the swing low to the swing high.

44:29So, where's my most recent? Well, my

44:31most recent swing low is here. And my

44:34most recent swing high is here. So, now

44:37I have my trading range. And this is the

44:39current present moment trading range

44:41that we're operating in. So, if we're

44:44bullish and my swing low is here, my

44:46swing high is here. As of right now,

44:49right, right this moment, none of this

44:52sellside liquidity is important, right?

44:55Ignore this because it's not in context.

44:58There's no reason for the price to go

45:00lower until it's shifted its structure.

45:03So, focus on market structure as your

45:06primary foundation. Market structure is

45:08like the building blocks of your trading

45:10strategy. Again, if you want more value

45:12from market structure, I have so many

45:14videos on the channel about it. But

45:16market structure is really your building

45:18blocks and you know with it we can see

45:20we have a swing low, we have a swing

45:22high. So that is our trading range.

45:24Inside of that box is our trading range.

45:26So I am now only interested in number

45:29one longing this market because market

45:32structure is bullish. Number two, which

45:35simply means now I have context. I'm

45:37only interested in the liquidity areas

45:41in inside of my price leg. So if my

45:44swing low is swing low to swing high,

45:48I'm not interested in any liquidity that

45:49is outside of that context. Right? So

45:52what am I interested in? I'm interested

45:53in these lows and I'm interested in

45:56these highs. And again, like I said,

45:58many traders will make the mistake.

45:59They'll think that because all of this

46:01liquidity is down here and here and this

46:03long trend line that they can short

46:05because price is going to go there. And

46:07you know what? Price probably will go

46:09there. But it's not about understanding

46:11where price will eventually go. It's

46:13about understanding and becoming

46:15profitable is about knowing where price

46:18is going to go now. Where is its next

46:21move? That is how you make money. You

46:23don't make money by knowing when it's

46:24going to go in some random future point

46:26in time because there's a random trend

46:28line there. because maybe it will go

46:30there but by the time it's gone there

46:32you've probably lost so much money that

46:33it doesn't even matter. So everything

46:36must to be understood through context

46:39and context is market structure. We have

46:42to understand that we are bullish. So

46:44until we have a change of character

46:46until price shifts bearish we don't care

46:48about the sellside liquidity that's at

46:49the bottom of the price leg. We'll cross

46:51that bridge if and when we come to it.

46:53Right now we want to focus on what is in

46:56our control. And in our control right

46:58now is understanding that price is

46:59probably going to trade higher short

47:01term. And we need to get involved in

47:03those long positions to make money

47:05today. So how do we do that? We identify

47:08the areas of liquidity. So we have equal

47:10highs. So we know there is a lot of

47:12stop- losses above here. We have equal

47:15lows. So there's a lot of stop losses

47:17below here. So what I would be doing and

47:19I would be framing is okay, I want to

47:20long the market. Awesome. I want to

47:24probably be buying in an area of

47:28discount. Okay, so down in these regions

47:30in here, I want to identify a point of

47:32interest, right? An order block, an area

47:34of interest. Again, many videos on order

47:36blocks and areas of interest. I want to

47:38identify key area liquidity, which is

47:41these lows, these highs. I want to

47:42identify my order block inside of my

47:45discount level. And then I want to

47:47patiently wait for price to sweep that

47:49liquidity into my point of interest.

47:52Then I want to get my entry model,

47:54right, which is my lower time frame

47:56confirmation. And then I want to buy

47:59using that. And again, what is it? It's

48:01the exact same model that we just looked

48:03at, right? We're waiting for the

48:06liquidity to be taken and then we're

48:08waiting for the liquidity to be

48:09targeted.

48:11So that is why everyone gets liquidity

48:13wrong because they lack context. And

48:15hopefully that gives you an

48:16understanding of how to incorporate

48:19context into your trading.

48:24Liquidity sweeps are the most powerful

48:26way to trade the market. [music] And yet

48:2899% of traders who try fail. The reason

48:32is because there are hundreds of [music]

48:34different liquidity sweeps that happen

48:36every day, but most of them don't work.

48:38It's only when you truly understand

48:40which one does that they become

48:41unstoppable. It took me years to figure

48:44out which ones work and why. And today

48:46I'm going to share that exact blueprint

48:49with you. Now, you hear people talk

48:51about liquidity and they make it out to

48:53be such a complicated process when in

48:55actuality it is super simple. Liquidity

48:58simply refers to money. When you're

49:01looking for liquidity, what you're

49:02looking for is money. And here's the

49:04truth. Liquidity is absolutely

49:06everywhere in the market. The thing is,

49:08it's just in some areas more than

49:10others. So, when we're looking at

49:12liquidity, we want to be looking at

49:13areas of large liquidity. Now, how does

49:16liquidity enter the market? Liquidity

49:18enters the market in one of three ways.

49:21The first way that liquidity enters the

49:23market is opening a position. So,

49:25anytime that you have a buy order open

49:28or a sell order open, whether it's a

49:30market execute, a buy stop or sell stop

49:32or a buy limit or sell limit, when that

49:35gets triggered into the market like

49:37this, at that moment in time, that is

49:40your injection of liquidity into the

49:42market. And so let's say you're buying

49:44for example or you're buying into the

49:46market which means you're putting your

49:47liquidity into the market. There is a

49:49counterparty on the other side of the

49:51market who's telling the opposite side

49:53of the trade. So if you're buying you

49:55know 10 lots on Euro dollar. There has

49:58to be someone on the other side of the

50:00market selling you those 10 lots. That

50:02is usually a market maker. That is their

50:05job. A market maker is there to provide

50:07liquidity to whoever needs it to make

50:09sure the order book is stacked so that

50:12anybody can get access to the market and

50:14they make their money off the difference

50:16between the bid and ask that is a market

50:18maker. So when you enter into a buy

50:20position that is you entering buyside

50:22liquidity into the market. The second

50:25area of liquidity that comes into the

50:27market is when you hit let's say a

50:29takerit. So when you hit a takerit,

50:32which is the area that you have agreed

50:33upon to close out of your trade in a

50:36profit, when you hit that takerit, that

50:38acts as sell liquidity. So you're buying

50:42your 10 lots worth of Euro dollar at

50:45this price, and you're selling back

50:48those same 10 lots to the market at a

50:50new price. And so at this point in time,

50:5310 lots of sellside liquidity come into

50:56the market. The third area that

50:59liquidity enters the market is when

51:01price hits your stop-loss. So, let's say

51:03you get triggered into a buy position.

51:05And for many of you, you may be

51:07experiencing more stop- losses than not.

51:09Every time that you hit a stop-loss like

51:11this, when price tags you out of that

51:14position, you are indeed selling your 10

51:17lots back to the market at a loss. So,

51:20you brought 10 lots here and you're

51:21selling the 10 lots back to someone else

51:23in the market at this price. and you net

51:27the negative difference. The same is

51:29true for a takeprofit. When you hit it,

51:31you're selling those same 10 lots at

51:34this area for a net positive dollar

51:37return. So that is the three different

51:39ways that liquidity enters the market.

51:40So that's liquidity. Liquidity is money

51:43and that money comes in either through

51:45entries, stop- losses or take profits.

51:48Now you have to ask yourself where is

51:51the most available liquidity. That is

51:54when you have to try to understand the

51:56other market participants because

51:58liquidity as we've said is orders and

52:00orders are placed by someone and there

52:03are commonalities in market participants

52:07behavior and so here are the most common

52:09areas of liquidity. So the most common

52:12is highs and lows. At any time you see

52:14an area of price like this where price

52:17is moving in this direction. Let's say

52:19price has a little bit of a pullback

52:22like this. The most common areas of

52:24liquidity at this moment in time are

52:27below this low and above this high. That

52:30is where the most liquidity is resting

52:33in the market. The reason behind that is

52:35because most market participants like to

52:39put their stop losses or their orders at

52:42highs and lows. Just the psychological

52:44element of safety. So buyers that are

52:47stepping into the market and expecting

52:49price to go higher when they enter the

52:51market the likelihood is is they ask

52:53themselves where should I place my stop

52:54loss and they are going to be looking to

52:56place their stop loss in a logical place

52:59which is usually below a low. Now

53:02sellers who are entering the market in

53:04here and they're entering sell positions

53:06in here they have the same question.

53:08Where should I be putting my stop loss?

53:11And then for most of them, they're going

53:13to answer the same thing in the most

53:15logical and safe position, which is

53:17usually above the high that they're

53:19selling from. Then you also have when

53:22these buyers are entering the market,

53:23they're putting their stop losses down

53:25here. Now, they have to set a takerit

53:27level. And that take-profit level again

53:29usually comes at a high. So, they're

53:31saying, "I'm buying here. If it hits

53:33this point, I'll exit the trade." So,

53:35there is again more liquidity at that

53:37high. So now you have takerprofit levels

53:40and stop-loss levels. And then the same

53:42for this low, you're having stop losses

53:44and anyone who's selling from this

53:46region, right? A lot of people are

53:49placing takerit levels in this area. So

53:52that is more liquidity. So you have stop

53:54losses and take profits at the low,

53:57stop- losses and take profits at the

53:58high. Then there's another form of

54:00liquidity that comes in at highs, and

54:03those are your breakout traders. So

54:05breakout traders are typically people

54:07who look at getting into the market

54:10based off of a break of a high or a

54:12break of a low. So let's say for example

54:14price move like this and price enters

54:16into this high there will become

54:19breakout traders. So at this level you

54:22will see people who put buy stops in

54:25place that says if price trades past

54:28this level I will get entered into my

54:31buy position because they're expecting

54:33that if price breaks its high the trend

54:35is likely to continue. And so now you

54:38have the takerits of the buyers who

54:41brought in here. You have the stop-

54:43losses of the sellers who sold in here.

54:45and you have the entries of the

54:48potential buyers that are going to buy

54:50on the breakout. And so you can see how

54:52all of this liquidity starts piling

54:55above this high. The same is true on the

54:57opposite side of the market. If price

54:58enters down into this area and here,

55:00there are going to be sellers waiting

55:03for this price point to break so that

55:05they can get involved in sells and try

55:07to trade with the trend. When we trade

55:10through this area, their sell positions

55:12will be entered into the market at this

55:14level. So now all of a sudden at this

55:16low and at this high you have down here

55:18you have stop losses you have take

55:22profit levels and you have entry levels.

55:25So you can see how there is a lot of

55:28liquidity that rests just on the

55:30dependence of this low. The same is true

55:32for this high stop losses take profits

55:34and entry points. So there is a

55:36considerable amount of liquidity resting

55:38at highs and resting at lows as opposed

55:41to less liquidity that may just sit

55:44inside of the price range. Inside of the

55:46price leg usually most of the liquidity

55:49is going to be in the form of entries.

55:51So people who are entering inside of the

55:54price leg as opposed to people who are

55:56looking to break out and place their

55:58stop losses or their take profits. And

56:00so that's why the most common form of

56:02liquidity is going to be your highs and

56:05lows. Another way to look at highs and

56:08lows as liquidity is equal highs or

56:10equal lows or support and resistance.

56:13Pretty much the same thing. When you get

56:15price moves like this one in here and

56:17then somewhat of a reaction to the

56:19downside. When you get something like

56:20this, what happens is another form of

56:22market participants join in and the load

56:25gets even larger because as this high

56:27gets respected and starts trading away

56:29from it. Well, now you have different

56:31characters entering the markets. You had

56:33the old sellers that had their stop

56:35losses. You're going to have the old

56:36buyers who place their breakout trades.

56:38You're going to have the other buyers

56:39who place their takeprofits. Now, you're

56:42also going to have new sellers who step

56:45into the market because their strategy

56:47is equal highs or their strategy is an

56:50area of resistance. An old high that has

56:52traded back into and had a reaction

56:55induces a lot of market participants to

56:57come and trade and participate in the

57:00market at that level. And guess what?

57:01They too are placing stop- losses above

57:04these highs. The same again, more

57:06breakout traders come because now this

57:08isn't just a single high, it's equal

57:10highs. It's an area of resistance. So if

57:13we break out of this level, more traders

57:15will come because the breakout now isn't

57:17just a high. It's an area of resistance

57:20that they will hope gets turned into an

57:22area of support or the equal highs being

57:25taken out is a stronger sign of bullish

57:28momentum which induces more bias. So you

57:30have equal highs and then sometimes

57:32you'll have the same for equal lows like

57:34this. You have equal lows down here and

57:36that's going to give you the exact same.

57:38So what you want to be looking for are

57:40lows,

57:41highs, equal highs, equal lows. Some

57:45other forms are, you know, trend lines

57:48and some really powerful sessions,

57:51right? Because not all highs and lows

57:53are the same. Not all highs and lows are

57:55equal. There can be prioritized highs

57:58and prioritized lows. I'm going to dive

58:00deeper into that in phase three. So what

58:04is a liquidity sweep? And more

58:06importantly, why do they happen? Let's

58:08first start with what actually is a

58:10liquidity sweep. Very, very simply put,

58:12a liquidity sweep is when price breaches

58:16a high, fails to close above that high,

58:20wicks above that high, and then closes

58:23back inside of the price range. The

58:25opposite can also be true in a bearish

58:27example. Now, that is what a liquidity

58:30sweep looks like. That's the easy part.

58:32That's what everybody understands.

58:33Everybody understands what a liquidity

58:34sweep is, but very few understand why a

58:38liquidity sweep happens. To understand

58:40this, you need to understand the basics

58:42of an auction market theory.

58:44Essentially, for every buyer, there must

58:47be a seller. Meaning, if you want to buy

58:50100 lots of Euro dollar, there must be

58:54someone on the other side of the market

58:56willing to sell a 100 lots of Euro

58:59dollar. This could be 100 different

59:01people all selling one lot. It could be

59:04two bigger people looking to sell 50

59:06lots. It doesn't matter how many people.

59:09All that matters is how many lots are

59:11available at any one price point. Now

59:13that you understand that every buyer

59:15needs a seller and every seller needs a

59:17buyer, you need to understand how an

59:19institution operates. You see

59:21institutions when they want to place

59:23large orders in the market, they know

59:26that they have large volume. That means

59:29that if they want to place a position,

59:31it's going to be a big position. But for

59:33them to do that, they need somebody on

59:35the other side of the market to take

59:37that position. Well, what do you know?

59:39We understand that at highs and at lows,

59:43there are these large liquidity pockets.

59:46What is in those liquidity pockets is a

59:48large amount of orders. And so if an

59:51institution wanted to sell a 100,000

59:56lots of Euro dollar, let's say

59:58hypothetically, well, if they just sold

1:00:00at market price, here's what would

1:00:02happen. So this right here is the order

1:00:05flow. This is what's actually going on

1:00:08in the market. This is what the real

1:00:09market looks like. I'll throw a picture

1:00:11up of the real order flow right now. As

1:00:13you can see that this is a simplified

1:00:15version of it because I need to explain

1:00:17something to you. You see, every single

1:00:18candle that you see, every phase of

1:00:21candles, this is independent of time

1:00:23frame. So, if you're on a 15-minute time

1:00:25frame, this is a 15-minute candle. And

1:00:27inside of this 15-minute candle, you

1:00:29will see the 15minute order flow for

1:00:32that candle. Let's say that they were

1:00:33daily candles. So, inside of this would

1:00:36be the daily order flow. And inside of

1:00:37the daily order flow, you would see

1:00:39this. Now, inside the market, inside the

1:00:42order flow, you will see the bid and

1:00:43you'll see the ask. The bid is the

1:00:46demand. Those are the people who are

1:00:48willing to buy, right? They are bidding

1:00:50on price. Ask is the sellers. They are

1:00:53the ones who are selling. They are

1:00:55asking for the price. Hey, my asking

1:00:58price is this in order to sell. And then

1:01:00the price is the price. So at any one

1:01:02point in time, price will be sitting at

1:01:04any one point in price. That price is

1:01:07considered fair value by both market

1:01:10participants. And here's how it works.

1:01:11The market is comprised of two sides,

1:01:13active and passive. You have active

1:01:15buyers and passive buyers. An active

1:01:17buyer is someone who will step in at the

1:01:20current market price and execute orders.

1:01:24They don't care about waiting for price

1:01:26to come back down to a certain level.

1:01:27They want to buy right now and so they

1:01:29are willing to buy at a premium. Same

1:01:32for sellers. Active sellers are willing

1:01:34to sell at this specific price right

1:01:36now. They're not waiting for price to

1:01:38come back. Passive buyers and passive

1:01:40sellers are people who are waiting for

1:01:42price to come into a certain area and

1:01:44then they will buy or then they will

1:01:47sell. So when you're looking at the

1:01:48order book you'll see all of these

1:01:49pending orders. What these are are

1:01:52potential fills meaning at any one point

1:01:55in time these orders can be removed

1:01:58unless they get triggered. When they get

1:01:59triggered then they get activated into

1:02:01the market. So here's how it works and

1:02:03here's how you see a candle actually get

1:02:05formed in real time. This candle, the

1:02:08new day is opening at 104 like this.

1:02:11What happens is at some point in time,

1:02:13let's say an active buyer steps into the

1:02:16market and they want to buy let's say 50

1:02:21lots of Euro dollar. And so they want to

1:02:23buy right now 50 lots of Euro dollar.

1:02:25Well, there is nobody at 104 willing to

1:02:28sell. So what happens is the price seeks

1:02:32the next block of liquidity like this.

1:02:34And then you see the candle move and

1:02:36this then becomes a bullish candle. So

1:02:39you see that we come up into here and

1:02:41you see there are nine lots here. Well,

1:02:43what happens is these nine lots go to

1:02:45zero and whoever was selling these nine

1:02:47lots, they get filled on their cells.

1:02:50But this trader here still has 41 lots

1:02:54that are left unfilled. So then if

1:02:56there's no sellers here, then it's going

1:02:58to go to the next block of liquidity and

1:03:01then it's going to go to 106. At this

1:03:03point, there are 40 units to sell. And

1:03:06so, these 40 get consumed and they go to

1:03:07zero. And all of these sellers get

1:03:09triggered into their trade. But there's

1:03:11still one unit left unfilled. And so,

1:03:13price has to go to the next available

1:03:16block of liquidity to take that. And one

1:03:19of these 30 units will get triggered as

1:03:22a sell. And then there'll be 29 left at

1:03:24this price. But the reality is there's

1:03:26nobody willing to buy from them at this

1:03:29price point. So, they don't get filled.

1:03:30So, if sometimes you have a wonder, you

1:03:32take a trade and prices hit your entry,

1:03:34but you still don't get filled into your

1:03:36position, that's because there is no

1:03:38liquidity available for your order

1:03:41specifically to get filled at that price

1:03:43point. Then, let's say, for whatever

1:03:44reason, this is our high. So, we're

1:03:47going to map out this right here as our

1:03:50highest point of price. And then, we're

1:03:52going to do it to the low of price right

1:03:55here. Then, let's say an active seller

1:03:58comes into the market. And let's say a

1:04:00seller steps in uh who's willing to sell

1:04:02at this specific price for 50 lots

1:04:06again. And let's say there are you know

1:04:08like four lots or something at this

1:04:10price point. Then what happens? Price

1:04:12goes and seeks where the liquidity is.

1:04:15So there's no buyers in this price

1:04:18point. So price skips this level. Inside

1:04:20of here there are four lots. Those four

1:04:22lots get consumed by the 50. We're still

1:04:24left with 46. Then you have seven in

1:04:27here, nine in here and 10 in here. Not

1:04:30enough to fill the 50. So price comes

1:04:31into here to collect the seven, the

1:04:34nine, the 10, whatever it is. And then

1:04:36this is where price ends up. Now that

1:04:39once bullish candle then turns into a

1:04:42bearish candle and that is essentially

1:04:44how the candle gets formed. Now why this

1:04:47is important is because I need you to

1:04:48understand something. Let's say for

1:04:50example a large institution steps into

1:04:52the market and they actually want to buy

1:04:55a,000 lots worth of Euro dollar at this

1:04:58point right here right 1.01 that's their

1:05:02target price when institutions come into

1:05:04the market and they build a position

1:05:06because institutions don't just place a

1:05:08trade they build a position I'll explain

1:05:10why in a moment so they've got an

1:05:11intention of placing a th00and units of

1:05:15Euro dollar and they have a target of 1

1:05:1902 to be their average price. Now,

1:05:21here's what happens. Let's say there's

1:05:22100 in here, you know, 20 in here, 50 in

1:05:26here. The likelihood is is there isn't

1:05:28enough liquidity available on the other

1:05:30side to fill those 10,000 orders. So,

1:05:32instead of the institutions coming into

1:05:34the market and placing all their 1,000

1:05:36at one time because what happens is if

1:05:38they do that, price would end up going

1:05:40from here and absolutely skyrocketing

1:05:43all the way up here. And then all of a

1:05:46sudden, you know, they might have got

1:05:47filled 20 down here, you know, 30 here,

1:05:51100 in here, 300 in here. And all of a

1:05:54sudden, their target of getting an

1:05:57average order value of 1.02 completely

1:06:00evaporates. And now they're getting 1.1,

1:06:04right? Completely out of alignment with

1:06:06what they wanted to. So, what they do is

1:06:08they slowly build a position. They'll

1:06:11put in 50 now and then it won't really

1:06:13move price. and then more sellers will

1:06:15step in and they'll put another 50 and

1:06:17another 50 and another 50 and another

1:06:1850. Right? That's kind of how they build

1:06:20out a position. That's why you'll often

1:06:22see that institutions build positions in

1:06:25ranging markets. Now, here's the other

1:06:28thing that they will do. They understand

1:06:30that at these highs and at these lows,

1:06:33there is a lot of liquidity, right? So

1:06:36maybe above this high there might be a

1:06:39thousand units to sell at this level.

1:06:44Why? Because you have buyers take

1:06:45profits that act as sell. You have

1:06:48breakout traders that are acting as

1:06:50sellside liquidity as well. So what

1:06:52you'll see is they will sometimes

1:06:54strategically push price into these

1:06:57areas so that all of those units of

1:07:00sales get flooded into the market. And

1:07:03guess who's there ready to buy them up

1:07:05and absorb them? That is going to be

1:07:07these guys. These guys are sitting in

1:07:10here. If this institution wants to,

1:07:12let's say, sell, you know, a,000 units,

1:07:15for example, at this price point, right?

1:07:18Or in and around these areas. Let's say

1:07:20they're in here. What they'll do is

1:07:21they'll nudge price up into these

1:07:23liquidity pockets up in here where they

1:07:25know there is a large amount of buyers,

1:07:28right? There are breakout traders in

1:07:30here. There are take-profit levels.

1:07:32there are stop-loss levels. Um, there's

1:07:34a bunch of liquidity that sits in here.

1:07:38So, they know that they can nudge price

1:07:39up a little bit, trigger all this

1:07:41liquidity, and then take the other side

1:07:44of it to get a good fill of their value.

1:07:47And they'll do that, and they'll push

1:07:49price into these levels, making

1:07:50everybody believe that the market is,

1:07:54you know, bullish, having buyers flood

1:07:56to the market so that they can get their

1:07:59sell positions in. Now, you'll know that

1:08:02this is happening when you see that

1:08:05price wicks above the high because what

1:08:08happens is as price approaches a high

1:08:10and trades above that level, this is

1:08:12where the magic happens. All of the

1:08:15buyers that are stepping in here, this

1:08:18institution is absorbing all the sales,

1:08:20absorbing all the sells until

1:08:21eventually, guess what? There's no more

1:08:23buyers left at this price point. And so

1:08:26now all there is is the rest of the

1:08:28sellers that were sitting at this price

1:08:30point. And so price then comes back

1:08:33down. It closes below this previous

1:08:36high. And that is your telltale sign.

1:08:40Why? Because what the market is saying

1:08:43is that the market and all its

1:08:45participants do not agree that price

1:08:48should be trading higher than this

1:08:49level. They agree that price should be

1:08:50trading lower than this level. And so

1:08:53now the likelihood is is that we get an

1:08:57aggressive selloff that goes in this

1:09:01direction. That is a liquidity sweep. A

1:09:03liquidity sweep is when price

1:09:05aggressively runs a high, wicks above

1:09:08it, and then closes inside of it. But

1:09:10like I said, the why behind it is what's

1:09:13most important because that when we get

1:09:15into the next stage is going to give you

1:09:17a good understanding of context. So

1:09:20understanding that when we liquidate

1:09:22this level and close back inside of the

1:09:24range, that is a liquidity sweep. But

1:09:26like I said, they happen all the time

1:09:28and not all of them work. It's about

1:09:30identifying which ones work and most

1:09:32importantly why. And I'm going to get to

1:09:33that in just a moment. So that is a

1:09:35liquidity sweep and that is ultimately a

1:09:37large part as to why liquidity sweeps

1:09:41occur. Now we need to understand what's

1:09:43a run on liquidity. So a run on

1:09:46liquidity and a sweep of liquidity are

1:09:48two very different things. And the

1:09:50reality is is most people get these

1:09:52confused or they call the same thing.

1:09:55They call different things the same

1:09:56thing, not really understanding what is

1:09:58actually going on and what is the

1:10:00difference. So let me explain it to you

1:10:02now. You see how liquidity sweep was

1:10:04when price trades over a high and then

1:10:08closes back inside with a wick on the

1:10:12top like this indicating lower prices.

1:10:15This indicates a rejection, right? A

1:10:18rejection of the idea that price should

1:10:20trade higher, therefore it's likely to

1:10:22trade lower. It's a resistance to that

1:10:24idea. Well, a liquidity run is quite

1:10:27literally the opposite. A liquidity run

1:10:29is when price aggressively trades above

1:10:32a high and then also continues with that

1:10:36same level of momentum. Now, there's two

1:10:38very different dynamics that occur

1:10:40between a sweep and a run. And I want to

1:10:42explain that to you using kind of this

1:10:45um order flow in here. So what is a

1:10:50liquidity run and why is that a lot

1:10:53different than a liquidity sweep?

1:10:55You see a liquidity run is used

1:10:57differently because it's used to fuel a

1:10:59move as opposed to something else. Let's

1:11:03say you know you can quite clearly see

1:11:05that we have a low a high a higher low

1:11:08meaning that this low is higher than the

1:11:10previous one indicating signs of bullish

1:11:11order flow. Then you have a higher high

1:11:14meaning this high here is higher than

1:11:15the previous one indicating bullish

1:11:17signs of order flow. So the

1:11:18expectational order flow right the

1:11:20structure of price is bullish. So you're

1:11:23expecting higher prices. Well we know

1:11:25that down here we have liquidity up here

1:11:28we also have liquidity. Now the market

1:11:31is bullish but still there are obviously

1:11:34sellers inside of this price level. So

1:11:36when a seller has their position up here

1:11:39well their stop losses act as buyside

1:11:43liquidity and then you also have

1:11:45breakout traders that act as buyside

1:11:47liquidity.

1:11:49And so a liquidity run is when that

1:11:52liquidity is used to fuel a move. Right?

1:11:56So let's say for example you know um

1:11:59large money institutions were building

1:12:01up a position and let's say as price is

1:12:03kind of ranging around in these levels

1:12:05in here you know they're building a

1:12:06position they may give a little bit of a

1:12:08liquidation of an internal low whilst

1:12:10they're building their position like

1:12:11this right once they've built their

1:12:13position they've got a nice amount of

1:12:16orders set to go long then what they

1:12:19might do is they might initiate a little

1:12:22bit of a bullish move because they

1:12:24understand that by doing so that is

1:12:27going to induce buyers to step into the

1:12:29market and allow the market to move in

1:12:32the direction they need to go in.

1:12:33Because once they've built their

1:12:35position, they can't build a position

1:12:37and then also move price because what

1:12:40would be the point of that? It wouldn't

1:12:41really make much sense for them. So what

1:12:43they do is they build the position, they

1:12:46start the run and then they let the rest

1:12:48of the market, the herd take their

1:12:51position where they want to go. So

1:12:53they've built their position in here.

1:12:55They'll give price a little bit of a

1:12:56nudge. Bearing in mind we're already in

1:12:57bullish order flow. So the likelihood is

1:12:59we're going to go long anyway. And so

1:13:01what happens when they give that little

1:13:02nudge is that buyers start stepping into

1:13:04the market. And eventually when we go

1:13:07through this high which is the logical

1:13:09phase of price

1:13:12there is number one everyone who's

1:13:14already buying and everyone who's

1:13:16rushing to buy late. Number two all of

1:13:18the sellers that start to get in. That's

1:13:20why sometimes you see a rejection of a

1:13:21high as well because it induces more

1:13:23sellers to create more liquidity. Well,

1:13:25what happens then is when price reaches

1:13:27this level in here and all of these stop

1:13:30losses get filled and all of these um

1:13:34breakout traders get into the market,

1:13:36what happens is price

1:13:40runs itself,

1:13:42right? because the momentum of all the

1:13:45liquidity that gets filled in at this

1:13:47level. Plus, nobody wants to sell price

1:13:50really after we break out the high. So,

1:13:52there's less sellers, right? Which means

1:13:54it's easier for price to increase and

1:13:57there are more buyers. So, you have a

1:13:58lot of buyers, not many sellers, and

1:14:01therefore the price rockets with ease.

1:14:04What that does is that takes this

1:14:08position

1:14:09well into profit and that is a liquidity

1:14:12run. That is when price aggressively

1:14:14breaks a high but uses the liquidity

1:14:17that's sitting at that high as momentum

1:14:20to continue. Whereas a liquidity

1:14:22[snorts]

1:14:23sweep uses that liquidity at a high as a

1:14:26mechanism to get filled on the opposite

1:14:28side of their orders where you can

1:14:30expect price to go lower. So, they're

1:14:32two very different things used for very

1:14:34different reasons.

1:14:38Literally, just one candle is all you

1:14:40need to become insanely profitable as a

1:14:43trader. And in this video, I'm going to

1:14:44show you exactly [music] how to

1:14:46understand the one candle rule and how

1:14:48to execute it into a live trading

1:14:50strategy. So, without further ado, let's

1:14:52jump straight in. Now, what you can see

1:14:53on screen right here is the trade that

1:14:55I'm going to be walking you through.

1:14:56It's the trade that was executed today

1:14:58and a bunch of the inner circle students

1:15:00also took this exact trade because of

1:15:03this one candle model. Now, the one

1:15:05candle that I'm talking about is the

1:15:07daily candle and I'm going to show you

1:15:08in this video how you can use [music]

1:15:09the daily bias to consistently generate

1:15:12income from trading. Now, there are

1:15:14three main things that I want to walk

1:15:15you through in this video. The first one

1:15:17is how to read the previous day's candle

1:15:20to [music] understand what today is

1:15:21likely going to do. The second one is

1:15:23higher time frame magnetism. And

1:15:26finally, the third one is entries,

1:15:28right? How do you actually enter based

1:15:30off of your daily bias? That's when I'll

1:15:32recap the exact trade that I took today.

1:15:34So, here I am on the daily time frame

1:15:37and I'm starting from the 13th of

1:15:39October. We're in early December right

1:15:41now. In fact, this trade was executed on

1:15:43the 3rd of December. And I'm going to

1:15:44literally walk you through every single

1:15:46daily candle to show you how you can

1:15:49predict the next day's candle. And then

1:15:51I'm also going to explain draws on

1:15:53liquidity/ area of interest. This is

1:15:55what's going to give you an edge in

1:15:56understanding where the daily might

1:15:58gravitate towards. And then finally,

1:15:59when we get to today, I'll show you how

1:16:01I used this daily candle model and how I

1:16:04was able to get into my position and the

1:16:06exact trade that I took. So, starting

1:16:08off plain and simple, predicting the

1:16:10daily candle, you can basically with a

1:16:12very high degree of accuracy understand

1:16:14what the next daily candle is going to

1:16:16look like based off of what the previous

1:16:18day's candle looks like. So, we'll walk

1:16:20through step by step and I'll explain it

1:16:22all. So, we'll start with where we're

1:16:23at, right? Monday the 13th of October.

1:16:25You can see this is a bearish daily

1:16:27candle and it's honestly very

1:16:28indecisive. So a candle like this and a

1:16:31day like this doesn't really give us any

1:16:32information. We don't actually know what

1:16:34the next day is going to do. We're kind

1:16:35of in a consolidation phase. What I will

1:16:37say is that the market is always ranging

1:16:40from consolidation to expansion back

1:16:45into consolidation back into either

1:16:49expansion in the buy side or expansion

1:16:51toward the sell side. So, we know we're

1:16:53going to be gearing up for a direct

1:16:55move. We just need to see the direction

1:16:56of that. And so, the next daily candle

1:16:58prints like this. Now, very, very

1:17:01important details. Notice, right, that

1:17:03this is a bullish daily candle. That's

1:17:04the first thing I want you to see here

1:17:07that we open down here. We wick below

1:17:10the low and then we close toward the buy

1:17:12side of this daily candle. Right? So, we

1:17:14have a bullish daily candle that has

1:17:16wicked below the previous day's low and

1:17:18closed back inside of the range. Already

1:17:21that immediately tells me tomorrow is a

1:17:23bullish day. And on this candle, what we

1:17:25can see is that we open down here. We

1:17:27have a very bullish aggression and we're

1:17:30closing toward the buy side again above

1:17:33the previous day's high. Closed toward

1:17:34the buy side. It tells me again that

1:17:37tomorrow is going to be a bullish day or

1:17:39at least we are going to get a bullish

1:17:41expansion. Again, another bullish move.

1:17:44We've broken above that previous day's

1:17:45high and we've closed up in here. Again,

1:17:48that tells me that we're definitely

1:17:49going to be targeting this day's high

1:17:51and you know, we're going to be

1:17:53essentially ending up higher than the

1:17:55previous day's high. Okay. Now, what we

1:17:57see here is a bearish daily candle,

1:18:00right? But we were expecting higher

1:18:01prices this daily candle right here. And

1:18:04if I just focus on just this daily

1:18:05candle, and let's say we drop down to a

1:18:071 hour time frame, right? Here we are, 1

1:18:08hour time frame. In fact, let's go to a

1:18:1015-inut real quick. So, the day opens

1:18:15here, right? This is where the daily

1:18:17candle opens. It opens on the and this

1:18:20is the daily candle. So this is the

1:18:23daily close to daily open. So it opens

1:18:26here. So you see that we actually open

1:18:28first going bullish. So the bias was

1:18:31higher prices. We got those higher

1:18:32prices and then eventually price sells

1:18:35off. And that's what that daily candle

1:18:37looks like. So if we go back to the

1:18:38daily time frame, what this now tells me

1:18:41is that tomorrow is going to be bearish

1:18:43because we've hit these highs. We've

1:18:45wicked above this high. So, you're

1:18:47looking for a wick above and a close

1:18:49back inside bearish. That tells me that

1:18:52tomorrow is going to be bearish. But

1:18:53also, what do we have? Right, this is

1:18:55step number two. Again, it's just

1:18:57reading your draw on liquidity. You can

1:18:59see here that we have this bullish fair

1:19:01value gap. So, tomorrow then I can

1:19:03already anticipate there's a good chance

1:19:05that we're going to trade bearish and

1:19:07we're going to enter in toward this fair

1:19:10value gap, right? That's what I have in

1:19:12mind. And again, I'm just want to

1:19:13predict the next daily candle. And

1:19:15again, what do you see? The next daily

1:19:17candle is another bearish candle, right?

1:19:18We've closed below and we've ended up

1:19:20inside this level. Now, the key here is

1:19:23the power of three, right? Many people,

1:19:25you've probably heard them talk about

1:19:26the power of three. The power of three

1:19:28is essentially a manipulation and

1:19:32distribution, right? So, you have, you

1:19:34know, a rangebound period like this and

1:19:36then you have a manipulation

1:19:39and then you have a distribution. That's

1:19:41kind of the power of three and it

1:19:43essentially states that before price

1:19:45will trade lower, it will first trade

1:19:46higher. You can see that time and time

1:19:48again in this model, right? So you can

1:19:50see here we've broken and closed below

1:19:51this low. But notice that beforehand

1:19:54there's a good chance that we actually

1:19:55come higher and then lower. What I want

1:19:58to be is I want to be a seller at this

1:20:00level of price. So if we do the same

1:20:02thing again, if we square off this price

1:20:04action and we go to yesterday's open and

1:20:07close. So here's the fair value gap down

1:20:09here. If we remove this for now and we

1:20:11find the open of this day is here 5:00 p

1:20:14p.m. Eastern Standard Time. Notice that

1:20:16we're expecting bearish price. But

1:20:18before we get the selloff, we get first

1:20:20a bullish move, right? That's the

1:20:22manipulation of the day and then the

1:20:24sell-off. So I, someone who wants to be

1:20:25a seller, I'm waiting for that

1:20:27manipulation and then I'm looking to

1:20:29sell after that manipulation occurs.

1:20:30It's always the same thing again. We'll

1:20:32always get the pullback and

1:20:33continuation. That's the same thing,

1:20:35right? All right. It's like before you

1:20:36trade lower, if you have a bearish daily

1:20:38bias, the next day you're expecting, you

1:20:40know, a manipulation before the

1:20:41continuation lower and you want to

1:20:43basically be selling here. If this is

1:20:45the daily open, first we're going to

1:20:47manipulate toward the buy side, then

1:20:48we're going to sell off toward the sell

1:20:49side. And that is essentially what we're

1:20:50seeing. And so for me now, what I would

1:20:53be looking at for the next level is

1:20:55first and foremost, let's also talk

1:20:57about more drawn liquidity. What do we

1:20:59have here, right? Equal lows down here

1:21:01at these lows. Also, if you look down

1:21:04here, we have this overlapping fair

1:21:06value gap. Very, very interesting area.

1:21:09An area that I was talking to my

1:21:10students with for a couple of weeks,

1:21:13saying that ultimately we will probably

1:21:14end up trading into this level. Equal

1:21:15lows down here and an overlapping fair

1:21:17value gap. So, we also have this as a

1:21:20draw on liquidity, right? Or a bias to

1:21:22trade towards. Again, looking at the

1:21:24next daily candle, what do you think is

1:21:25going to happen? For me, I'm indicating

1:21:27more likely that we're going to get more

1:21:29bearish price action, right? Another

1:21:31bearish continuation. What happens? We

1:21:33open. We first have a run toward the buy

1:21:35side and then we have the sell-off doing

1:21:37what again? That same pattern, right? We

1:21:40have our open manipulation and move

1:21:45toward the sell side, right? And now

1:21:46what have we done? Now we've closed over

1:21:49that fair value gap. So we've inverted

1:21:50that fair value gap, which then also

1:21:52becomes another area of interest for me.

1:21:54So if I was to let's say be a seller

1:21:57now, right? An interesting move could be

1:21:59a retracement into here and then a

1:22:00continuation out of here. Right? This is

1:22:02how you're building daily bias

1:22:03essentially. Now notice what happens

1:22:05here. This time we actually have a

1:22:07bullish daily candle. And notice that

1:22:08we've wicked below this low and closed

1:22:11back inside. That to me is typically

1:22:13sign of a reversal. Right? So what I

1:22:15would now be looking for is now we have

1:22:18this bullish fair value gap in here

1:22:20which is also overlapping. Now, I would

1:22:23be expecting the next day to trade

1:22:25higher above this previous day's high

1:22:28and into this level right here. Right?

1:22:32Simple as that. That's what I would be

1:22:33looking for. And what you notice is on

1:22:34this specific day, we actually don't get

1:22:36that. So, we do get the open, we do get

1:22:38the manipulation, and we do start

1:22:39getting the momentum. So, definitely you

1:22:41could have been in a trade at these

1:22:43lows. And again, if I open up the

1:22:4515-minut time frame, which is my primary

1:22:47time frame for direction, you'll notice

1:22:49what market opens. We have the bearish

1:22:51manipulation, right? Even look at the

1:22:53structure on the 15-minut time frame. We

1:22:55were very bearish. Now we've shifted

1:22:57bullish, right? Which is yesterday's

1:22:59manipulation and close above the high

1:23:02and now we're selling off again. Longs

1:23:05accumulated in this New York session and

1:23:06you're just holding them ready for the

1:23:08next day. We're probably going to end up

1:23:09in this level. So, it's the same thing,

1:23:11right? Just because we haven't fulfilled

1:23:13the prophecy yet, we've still been able

1:23:15to probably execute long positions in

1:23:17this area. And again, we go back to the

1:23:18daily, right? We've still anticipated

1:23:20bullish price action for that day after

1:23:22the manipulation, right? So, anytime

1:23:24that I have a bias to go higher, I first

1:23:27want it to go lower before it goes

1:23:28higher. And I want to try to buy in this

1:23:30level. So, this day, what would I be

1:23:32expecting? A continuation higher above

1:23:34these two highs. And that's what

1:23:36happens, right? We get that move, we

1:23:37open, we pull back, and we continue

1:23:39trading higher. Now, what we've done is

1:23:41now we've come back into this bearish

1:23:44order block. You can use this level, you

1:23:45can use this candle regardless, and

1:23:46we've had quite an aggressive reaction

1:23:48from it. But notice we have actually

1:23:50closed above the previous day's high. So

1:23:52what this tells me is there is a lower

1:23:54level of conviction, meaning the next

1:23:56day is a day where it could go higher,

1:23:58but it also could go lower. So you keep

1:24:00those things in mind, but ultimately

1:24:02it's a bullish candle. So you'd be

1:24:04expecting probably a continuation,

1:24:05right? Which is what we get. We get the

1:24:07open, low, high, close. So again, it's

1:24:12the same thing. price is trading higher,

1:24:13but before it's trading higher, it's

1:24:15opening, coming down, and then trading

1:24:18higher, and then closing here, right?

1:24:20And so, you're getting the open, low,

1:24:22high, close. That's what that is. So,

1:24:24again, you're accumulating long

1:24:26positions in these levels based off of

1:24:28just the daily candle. Like, it's

1:24:29literally that simple. So, for this day

1:24:31now, what we can see is we have a

1:24:33bullish candle, but we have wicked above

1:24:35this high and closed back inside of the

1:24:37range. This tells me that this could be

1:24:39a reversal, but it could also be a

1:24:41continuation. Again, there is a little

1:24:43bit less clarity on the situation.

1:24:45You're not going to get every single day

1:24:47absolutely correct. That's not the game

1:24:48of trading. The game of trading is

1:24:50probabilities. Hey, again, again, just

1:24:52give me one second. I want to quickly

1:24:53share something with you, which is an

1:24:55update since I've last produced this

1:24:57video, which is again going to help you

1:24:58even more. So, what you're looking at

1:24:59right now is the data on what exactly

1:25:02you're watching, right? You're watching

1:25:03the daily bias. Now, I'm not someone who

1:25:05likes to just give ideas and things that

1:25:07look cool. No, I'm a data driven trader.

1:25:09That's how you really actually get

1:25:10results in trading. So this is what I

1:25:12want to share with you. This what you're

1:25:13looking at right now, it looks

1:25:14complicated but it's really simple. This

1:25:15is for the both daily and weekly bias.

1:25:18So what I'm explaining to you, the

1:25:19concepts I'm explaining to you, we have

1:25:20gone and done a deep dive data

1:25:23collection with over 15 years of data.

1:25:26So looking at every single daily and

1:25:28weekly candle over the past 15 years,

1:25:31this is what we found. We found that the

1:25:33bullish bias is accurate on average 67%

1:25:38of the time. The bearish is accurate

1:25:40roughly 67% of the time as well. So the

1:25:43daily bias that I'm sharing with you

1:25:44right now over the past 15 years, right,

1:25:47which is 5,469

1:25:50daily candles, it has been accurate 67%

1:25:53of the time. And we did the exact same

1:25:55thing for weekly. And weekly was

1:25:56actually slightly higher. It was

1:25:58actually 68% overall. So you can see

1:26:00bearish and bullish. So we are able to

1:26:02consistently predict the daily and

1:26:04weekly bias with a 68% degree of

1:26:06accuracy. And not only that, what I

1:26:09shared with you earlier on market

1:26:10structure, we've actually built in to

1:26:12this same indicator. So you can see here

1:26:14we it shows us our market structure, but

1:26:16in the top right corner here, it

1:26:19actually also shows us the directional

1:26:21bias. So you can see here it tells us

1:26:23that the weekly is bearish and the daily

1:26:25is actually bearish. So it tells us our

1:26:28directional bias. The direction of bias

1:26:30is quite literally built into this

1:26:31indicator as well as normal market

1:26:34structure depending on what time it is

1:26:36that you're looking at. So yeah, I

1:26:37thought I would share that with you.

1:26:38Again, just a general reminder. You can

1:26:39check it out. The link is in the

1:26:41description. So the next day we get that

1:26:43continuation again, right? Higher

1:26:45prices, but notice that the momentum is

1:26:47starting to kind of fade away. So again,

1:26:48what do we get? A wick above the high

1:26:50and close back inside. So again, this

1:26:52for me now, when you're wicking above

1:26:54this high, closing inside the range,

1:26:56it's usually indication of a reversal,

1:26:58but you could also continue before you

1:27:00reverse, right? So a lot of the times

1:27:02when you get these types of candles

1:27:03where they're wick heavy, you'll

1:27:04probably see before a reversal, maybe a

1:27:06sweep of a high. If we look at this

1:27:08level, okay, so the next day, we don't

1:27:10get that. We get a very aggressive

1:27:12sell-off, right? So [snorts] we close

1:27:14below that previous day's low. We open

1:27:16here, we manipulate toward the buy side,

1:27:18we have an aggressive selloff, we close

1:27:20below the previous day's low for me. Now

1:27:21the next day is simple. We have equal

1:27:23lows down here. Again, that number two

1:27:25draw in liquidity, that bias. We have

1:27:27those equal lows as a draw in liquidity.

1:27:29We have these equal lows as a draw in

1:27:31liquidity. So what am I looking for

1:27:32today? This is a very obvious day. I'm

1:27:34expecting a pullback and then a selloff.

1:27:37Right? That's the daily bias. What

1:27:39happens? Again, we can go into the

1:27:4015-minut time frame. You can see we

1:27:42open, we put in the high, and then we

1:27:44sell off aggressively. Right? Perfect

1:27:46opportunity, perfect day to be getting

1:27:47into short positions, right? Where does

1:27:49the market open? Market opens here at

1:27:515:00 p.m. What happens? We pull back

1:27:54into this area and then we sell off. In

1:27:57London session, we're good to be

1:27:58selling. New York session, sell

1:28:00continuation, right? Same thing. All

1:28:01based off the previous days candle.

1:28:04That's it. Just the daily bias, right?

1:28:06So, the market, we open, we put in the

1:28:09high, and then we sell off aggressively.

1:28:11So, what do you think I'm expecting

1:28:12today? Well, now we've taken out this

1:28:14drawn liquidity, but we still have this

1:28:15one down here. We've closed below that

1:28:17low, right? aggressive close below that

1:28:19low and now I'm expecting what? A

1:28:21pullback and continuation again. What

1:28:23happens? Open, pull back, continuation,

1:28:26right? Perfect mitigation of this

1:28:28previous day's low. What do I'm

1:28:29expecting again? Well, now we've taken

1:28:30the draw in liquidity. We've hit the

1:28:32draw in liquidity, right? We've also hit

1:28:34into this fair value gap. But we have

1:28:36again closed below that low. And so I am

1:28:39most likely expecting lower prices for

1:28:41this day. And again, what do we get? We

1:28:43get open, pullback, selloff. So again,

1:28:47this is where you want to be looking at

1:28:48it. Before this day even opens, you're

1:28:50expecting, okay, today I'm going to be

1:28:51bearish. We're going to have a bullish

1:28:53pullback. I'm going to sell. Go lower.

1:28:55Next day, bearish, bullish pullback. I'm

1:28:57going to be a seller. Go lower. Next

1:28:58day, bearish, bullish, pullback. I'm a

1:29:00seller. Go lower right on this day. Now,

1:29:02notice that the momentum is starting to

1:29:04get a little bit slower. Now, we're

1:29:06inside of our draw on liquidity. Now,

1:29:08you can start adding that into the

1:29:10context of slowing down and expect that

1:29:11maybe at some point we'll start to get a

1:29:13reversal. But still for this specific

1:29:15day, my next daily bias would still be

1:29:17bearish. Why? Because we've closed below

1:29:19the previous day's low. Again, what do

1:29:21we get? Open, pullback, sell off. Again,

1:29:24you're just a seller in this market. The

1:29:26next day, what am I expecting? Another

1:29:28sell. Now, notice that we do get the

1:29:30sell, right? So, we do trade below this

1:29:32low, which was the goal of the day. But

1:29:34now, notice what happens. We have a

1:29:36bullish day and we actually have a wick

1:29:38below previous day's low and a close

1:29:40back inside. This for me is literally a

1:29:43SOS that we are about to reverse. The

1:29:45market is going to now trade bullish.

1:29:47And it's very simple. Now you look and

1:29:48you see, okay, well, we actually have

1:29:50number one point of interest that we're

1:29:52trading out of. Secondly, we have a

1:29:53bullish fair value gap here. We have a

1:29:55bullish fair value gap here, right? So

1:29:58now we have these higher time frame

1:30:00areas of interest or draws on liquidity

1:30:02that we're expecting price to trade back

1:30:03into. So now what do you think I'm

1:30:04looking for? Now today, I'm expecting to

1:30:07be a buyer. Price is going to pull back

1:30:09in here and then shoot off up here. Pull

1:30:10back in here and shoot up off in here.

1:30:12Right? So, what does the next day do?

1:30:14The next day, we open here. A very small

1:30:16pullback and a very aggressive bullish

1:30:18candle. Well, now what do you think I'm

1:30:21expecting price to do on this next day?

1:30:24Again, I'm expecting that we're going to

1:30:25have another bullish day, right? A

1:30:27little pullback and continuation. What

1:30:30happens? Market opens, we sell off, and

1:30:32we go higher, right? 50-minut time

1:30:35frame. What does that look like? Again,

1:30:36perfect opportunity to get longs. Right,

1:30:38the market opens here. Market opens, we

1:30:42sell off, London opens, right? There's a

1:30:44perfect entry opportunity in here. We

1:30:46traded long on this position.

1:30:49Market booms towards the upside, which

1:30:50is expected. So, they get the

1:30:52manipulation, you wait for the

1:30:53manipulation, you wait for the

1:30:54confirmation on the lower time frames,

1:30:56and then you execute and long, right?

1:30:58It's so simple. It literally works every

1:31:01day. So, now what do we have? We've

1:31:02filled all of those levels. Now we have

1:31:04a bearish draw on liquidity, right? Cuz

1:31:06now we have this daily fed value gap.

1:31:09Notice that we have been accurate with a

1:31:11like 95% level of accuracy. Now this day

1:31:15is indecisive. We don't get a shift

1:31:17higher or we don't get a shift lower.

1:31:18That for me again is quite indecisive. I

1:31:20don't have a read on the next day. But

1:31:22then what happens? Then we get a bullish

1:31:25candle. Now we've wicked above this high

1:31:28and closed back inside. And we haven't

1:31:31closed above any candles. So that for me

1:31:33is usually a sign of a reversal. But

1:31:35because it's a bullish day, it could

1:31:37still trade higher before the reversal,

1:31:39right? And again, what do we have?

1:31:41Pretty much an undecided day. But we do

1:31:43have a bullish day and it has closed

1:31:46above this high and above this high. So

1:31:48I would be expecting for price on this

1:31:50day to trade into this old high. Right?

1:31:53Very simple. And that's what we have.

1:31:55Open pullback trade into the high. Now

1:31:57we have a very bullish day. I would be

1:31:59expecting what? You answer this at home.

1:32:01Where do you think I'm expecting price

1:32:02to go? Higher, right? Yes. On this day,

1:32:06it doesn't happen. In fact, we failed to

1:32:08take out the high and now we have a

1:32:09bearish candle. So today, what I would

1:32:12be expecting is lower prices. We have a

1:32:14fair value gap here, right? We have a

1:32:16bullish fair value gap here, bullish

1:32:18value gap down here. I'd be expecting

1:32:19lower prices on this day. What happens?

1:32:21Market opens, pullback, selloff. We've

1:32:24closed below this low. What do you think

1:32:26I'm expecting that price is going to do

1:32:28today? Same thing again. Bearish open,

1:32:31pull back, sell off. Perfectly into that

1:32:33old low. We close below. What do you

1:32:35think I'm expecting? Another bearish

1:32:37day, right? Pull back, sell off. Very

1:32:40aggressive. Where into that draw on

1:32:42liquidity? Okay, fine. Another bearish

1:32:45day. Where do you think I'm expecting

1:32:46price to go? Lower again. Perfect. But

1:32:49then what happens now? We do get lower

1:32:51prices. We could have been a seller, but

1:32:55now we have a clear reversal indication.

1:32:57We're coming from a point of interest.

1:32:59We've wicked below the low and we've

1:33:01clearly closed well above that previous

1:33:03day's low. Now I'm expecting a reversal.

1:33:06I'm expecting a bullish candle. What

1:33:08else do we have? We have bullish daily

1:33:10fair value gap in this scenario. We get

1:33:12both, right? And that can happen. We get

1:33:14the run higher and we get the run lower.

1:33:16But for me again, even still a wick

1:33:19below the low and a close back inside.

1:33:22That's probably more indication of a

1:33:24bullish day for the next day. And we do

1:33:26have that bullish day next day. Now

1:33:27notice you go from expansion a little

1:33:30bit rangebound. So on this type of day,

1:33:32I don't have a clear definite read on

1:33:35price. I'm just not sure. But what I do

1:33:37see here is we have created a swing low.

1:33:39Right? We have one low, two lows, and a

1:33:41swing here. So this could be a protected

1:33:42low for now. And it is right. Market

1:33:45opens, pullback, aggressive bullish

1:33:47shift. What do you think I'm expecting?

1:33:49Another bullish day. Right? Open, pull

1:33:51back, higher prices. What do you think

1:33:53I'm expecting? Another bullish day. We

1:33:55do get the bullish day right please

1:33:57understand we do break this high but now

1:33:59what happens now we've wked above this

1:34:01high and closed back inside of this

1:34:03range tomorrow I am expecting a bearish

1:34:06day so we do get the bearish day right

1:34:08price does sell off this is the key

1:34:10thing just because it closed bullish it

1:34:12sells off but now it's sold off it's

1:34:14wicked that low and closed bullish where

1:34:17do you think tomorrow is going to go

1:34:18tomorrow is probably going to be bullish

1:34:20and I'm expecting this high and this

1:34:21high to get taken out again perfect

1:34:23example we pull back Right? And this is

1:34:25Monday the 1st of December now. So we've

1:34:27wicked, it's a bullish candle, but we've

1:34:29wicked above the high. I would be

1:34:30expecting a reversal. Now you come into

1:34:33not into today into the next day, right?

1:34:36Which is yesterday. So yesterday you can

1:34:39see that we had a bullish candle. So

1:34:42we've closed above these highs. What do

1:34:44we also have? We have buy side

1:34:46liquidity. We have equal highs at this

1:34:49high. We have this old high, right? So,

1:34:52what do you think I'm expecting coming

1:34:54into today? Like, as of recording this

1:34:56today, what do you think I'm expecting?

1:34:58I'm expecting price to take out this

1:35:00high. So, now, how did I trade this day?

1:35:01Let's take a look. This is price action

1:35:03right now. This is where we are. When I

1:35:04come into my London session for the day,

1:35:08my read on price for the day is bullish.

1:35:10Notice, guys, we have literally just

1:35:12gone through over a month's worth of

1:35:14price action. 6 weeks of price action

1:35:16just using the understanding of the

1:35:18previous day's candle. and we have been

1:35:20accurate 95% of the time. Like what I'm

1:35:23sharing isn't a joke. In today's price

1:35:25action, I'm expecting higher prices. So

1:35:27again, let's go back into London session

1:35:29where price opens up. This is what price

1:35:31looks like. This is the current daily

1:35:34candle. So we've opened here. We've

1:35:36opened and we're already trading

1:35:38bullish, which is what I'm expecting.

1:35:39But we haven't yet hit this old high

1:35:43right up in here. And we also haven't

1:35:45yet hit these old highs which we just

1:35:47looked at on the daily time frame. And

1:35:49we know that that's going to be our

1:35:51target. So now what I need is step

1:35:53number three which is how do you

1:35:54actually become a buyer on these days?

1:35:57Well, what you do is you wait for a

1:35:58pullback. So you can enter into let's

1:36:00say the 1 minute time frame right inside

1:36:02of your session or the 5minut time frame