Introduction to the ETM Free Smart Money Course

This section introduces the ETM Free Smart Money Course, which consists of three parts: Market structure, liquidity, and putting it all together. The course aims to provide a comprehensive understanding of these topics.

Market Structure

• Market structure helps identify the overall direction of the market and order flow.

• It involves understanding trends, liquidity, biases, and different market phases such as expansion (trending) and consolidation (contraction).

• Examples are given for both bullish (higher highs and higher lows) and bearish (lower highs and lower lows) trending markets.

Range Formation in Market Structure

• A range is defined as the area between the most recent high and low in the market.

• Each time structure is broken by price movement, a new range is formed.

• Examples are provided to illustrate how ranges are formed when price breaks previous highs or lows.

Structure Breaks in Market Analysis

• Structure breaks occur when swing highs or swing lows are broken by price movement.

• The break must be confirmed by a candle close rather than just a wick.

• Proper identification of structure breaks helps determine the direction of price movement.

Understanding Structure Breaks

This section focuses on understanding structure breaks in more detail.

Proper Identification of Structure Breaks

• Proper identification requires considering the highest point with a closed body as the swing high or lowest point with a closed body as the swing low.

• Wick alone does not indicate a proper break; it must be confirmed by a candle close.

• Examples are provided to demonstrate proper identification of structure breaks in both bullish and bearish trends.

Failed to Close (FTC)

This section explains the concept of "failed to close" (FTC) in market analysis.

Failed to Close (FTC)

• FTC refers to a situation where price fails to close beyond a previous barrier.

• It indicates a potential continuation of the trend in the opposite direction.

• Examples are given to illustrate FTC in both bullish and bearish trends.

The transcript is already in English, so no language conversion is required.

New Section

This section discusses the concept of structure breaks and reversals in the market.

Reversals and Structure Breaks

• A reversal occurs when price breaks out of a range in the direction it is likely to go.

• Price shows its intent by forming a higher high or lower low.

• Micro pullbacks within the initial range are not important, except for entry points.

• When price breaks a previous high and comes back into the old range, it indicates a higher high.

• The confirmation of a higher low occurs when price breaks the high.

• Structure breaks occur when price breaks previous highs or lows and comes back into the range.

• This indicates a change in market direction.

New Section

This section explains how liquidity acts as a magnet in the market.

Liquidity and Market Direction

• Liquidity acts as a magnet for price movement.

• When price breaks structure and pulls back into an area of interest within the initial range, it indicates a shift in market direction.

New Section

This section provides examples of structure breaks and reversals.

Example 1: Bullish Trend Reversal

• In a bullish trend, if price forms a higher high but does not close below the previous low, it indicates liquidity.

• Price rallies from a micro pullback and breaks out of the range, forming a swing.

• Once price comes back into the initial range, it confirms the higher high and identifies the higher low as well.

Example 2: Bearish Trend Reversal

• In a bearish trend, if price forms lower highs and lower lows, but then breaks above the previous lower high instead of making another lower high, it indicates a structure break.

• Price comes back into the range, confirming the lower low and signaling a trend change.

New Section

This section discusses how price movements are fractal and demonstrates the relationship between different time frames.

Fractal Nature of Price Movements

• Price movements are fractal, meaning they exhibit similar patterns across different time frames.

• The one-hour time frame shows swing pullbacks and structure breaks.

• The five-minute time frame reveals lower highs, lower lows, and reversals within the larger one-hour pattern.

The transcript is already in English.

New Section

This section discusses price movements and bounces from discount and premium levels.

Price Movements and Bounces

• The transcript starts with the mention of "rally drop rally drop."

• Price may already bounce from the discount level, but further observation is needed.

• Bounces are observed from both the discount and premium levels.

• Mention of a foreign bounce.

• Reference to a premium bounce.

• Another bounce from the premium level, with the note that it has not closed below the range yet. If it goes back above, it will be considered a bounce from the discount level.

• Price breaks low after failing to close above, demonstrating how to spot consolidations and maneuver within them.

New Section

This section explains how to identify ranges and understand market structure within consolidations.

Identifying Ranges and Market Structure

• Introduction to a new example of range identification.

• Explanation of range high, higher high, higher low, and low points in a consolidation.

• Discussion on micro clues provided by price movements within market structure.

• Target expectation for continued upward movement.

New Section

This section focuses on failed attempts at breaking certain levels and expecting bounces from specific zones.

Failed Attempts and Expected Bounces

• Price makes a lower low after failing to break above.

• Failed attempt to break above allows for the use of Fibonacci retracement.

• Expectation of a bounce from the discount range as price remains in that zone.

• Reference to FTR (failed to return) and liquidity building.

• Price comes back and takes the previous structure due to built liquidity.

• Identification of the new range after price closes inside it.

• Determining swing low and swing high within the new range.

• Expectation of price bouncing back and forth within the zone, specifically from the premium level.

New Section

This section provides an update on current price action.

Current Price Action

• Brief mention of ongoing price action being discussed.

New Section

This section emphasizes understanding consolidations and delves into the Wyckoff cycle.

Understanding Consolidations and Wyckoff Cycle

• Explanation of forming a range after failed breakout attempts.

• Introduction to the Wyckoff cycle, which occurs within consolidations.

• Identification of premium and discount levels within consolidations.

• Mention of a Wyckoff price cycle indicating potential breakout direction.

• Reference to PS (Preliminary Support), which leads into consolidation formation.

New Section

This section continues discussing the Wyckoff cycle, including buying climax, tests, compression phase, sign of weakness, and price direction changes.

Wyckoff Cycle

• Confirmation of range after price comes back from buying climax.

• Explanation of tests within the Wyckoff cycle, including primary and secondary tests.

• Price breaking compression phase indicates weakness and potential downward movement.

• Similar pattern discussed in an inverted manner.

New Section

This section briefly mentions variations in the Wyckoff cycle.

Variations in the Wyckoff Cycle

• Acknowledgment of different variations in the Wyckoff cycle.

Compression and Time Efficiency

The speaker discusses the importance of compression for reducing processing time.

Compression for Time Efficiency

• Compression techniques can significantly reduce the time required for certain tasks.

• By compressing data or information, it becomes more compact and easier to process.

• This can be particularly useful in scenarios where time is a critical factor.

Breaking Above and Expansion

The speaker talks about breaking above and expansion in relation to price movements.

Breaking Above and Expansion

• When price breaks above a certain level, it creates an opportunity for expansion.

• This expansion can lead to further upward movement in price.

• It is important to identify these breakouts and understand their potential impact on the market.

Structure Breakout and Expansion

The speaker explains how structure breakout leads to expansion in price movements.

Structure Breakout and Expansion

• When price breaks out of a defined structure, such as a range or consolidation phase, it often leads to an expansion in price movement.

• This breakout signifies a shift in market dynamics and can present new trading opportunities.

• Traders should pay attention to these breakouts and analyze their implications for future price action.

Basic Market Structure Lesson

The speaker introduces the basic market structure lesson.

Basic Market Structure Lesson

• Understanding market structure is crucial for analyzing price movements effectively.

• The first lesson focuses on identifying key elements of market structure, including highs, lows, ranges, and trends.

• By recognizing these elements, traders can gain insights into potential buying or selling opportunities.

Range and Price Movement

The speaker explains the concept of range and its significance in price movement analysis.

Range and Price Movement

• Market movements often start with a range, which consists of a high and a low point.

• Analyzing the behavior within this range can provide valuable information about market sentiment.

• Traders should observe how price reacts to the range boundaries to identify potential bullish or bearish signals.

Reversals and Buy Models

The speaker discusses reversals and buy models in relation to market structure.

Reversals and Buy Models

• A reversal occurs when price changes direction, typically after reaching a high or low point.

• Buy models are formed when price reverses from a low point to create higher highs and higher lows.

• Traders can use these buy models as indicators for potential buying opportunities.

Cell Model Considerations

The speaker explains the considerations for cell models in market analysis.

Cell Model Considerations

• When analyzing cell models, it is important to consider whether price has closed above or below certain levels.

• Until price breaks above a specific level, it is still considered part of the cell model.

• Traders should wait for clear indications of an accumulation breakout before considering a shift towards buying opportunities.

Accumulation Breakout and Cell Models

The speaker discusses accumulation breakouts and their impact on cell models.

Accumulation Breakout and Cell Models

• Once price accumulates within a range and breaks out from it, traders can expect the start of a cell model.

• This breakout signifies a shift in market dynamics towards selling opportunities.

• It is crucial to monitor these accumulation breakouts and analyze their implications for future price movements.

Cell Model Breakout and Buy Models

The speaker explains the breakout of cell models and the formation of buy models.

Cell Model Breakout and Buy Models

• When a cell model breaks above a certain level, it transitions into a buy model.

• Traders can identify these buy models as potential buying opportunities.

• The target for these buy models is typically the startup accumulation level.

Price Structure Breakout

The speaker discusses price structure breakouts and their significance in market analysis.

Price Structure Breakout

• When price breaks below a specific level, it indicates a new high point.

• Analyzing how price reacts to this breakout can provide insights into market sentiment.

• Traders should pay attention to these structure breakouts to identify potential trading opportunities.

Accumulation Startup and Cell Models

The speaker explains the concept of accumulation startup and its relation to cell models.

Accumulation Startup and Cell Models

• A combination of accumulation startup followed by cell models can be observed in market analysis.

• These patterns indicate shifts between buying and selling opportunities.

• Traders should analyze these patterns to make informed trading decisions.

Transition from One Cell Model to Another

The speaker discusses the transition from one cell model to another in market analysis.

Transition from One Cell Model to Another

• Market analysis often involves transitioning from one cell model to another.

• This transition occurs when there is a change in market dynamics or sentiment.

• Traders should observe these transitions as they may present new trading opportunities.

Expectations for Buy Models

The speaker explains the expectations for buy models in market analysis.

Expectations for Buy Models

• After a cell model, traders can expect the formation of a new buy model.

• This buy model indicates a shift towards buying opportunities.

• Traders should set their targets based on the startup accumulation level.

Price Range and Stop Plan

The speaker discusses price range and stop plan in market analysis.

Price Range and Stop Plan

• Even if price breaks below a certain level, it may not necessarily indicate a sell model.

• In some cases, it could be a stop plan or trap to deceive traders.

• Traders should be cautious when analyzing price movements within ranges to avoid false signals.

Validated Gaps and Voids

The speaker explains validated gaps and voids in market analysis.

Validated Gaps and Voids

• Gaps and voids are important concepts in market analysis.

• Validated gaps occur when price reacts significantly after filling a gap area.

• Traders should focus on validated gaps and voids to make more accurate trading decisions.

Gap vs. Void Explanation

The speaker differentiates between gaps and voids in market analysis.

Gap vs. Void Explanation

• A gap occurs when there is an empty space between two consecutive candles.

• A void, on the other hand, is when price fills the previous gap but fails to close above or puncture through it.

• Traders should understand the difference between gaps and voids to interpret their implications accurately.

Gap Filling and Price Reaction

The speaker explains the concept of gap filling and price reaction.

Gap Filling and Price Reaction

• When a gap is filled, traders can expect price to react to that area.

• This reaction can result in further downward movement in price.

• Traders should analyze how price behaves after filling a gap to anticipate future market movements.

Understanding Price Action and Validated Gaps

In this section, the speaker discusses the concept of price action and validated gaps. They explain how to identify key levels and validate gaps to increase the probability of successful trades.

Understanding Price Action

• The speaker explains that when price comes back to a premium level, it may reject it multiple times before dropping.

• People keep selling as price rejects the premium level, leading to the formation of liquidity zones where stop losses are placed.

• Buyers get trapped when price breaks below these liquidity zones, causing a further drop in price.

• This phenomenon is known as failed to break (FTB) and can be used as an entry signal.

Validated Gaps

• Validated gaps are gaps that cause a structure break or fail to break previously.

• These gaps indicate strong buying or selling pressure and can be used for higher probability trades.

• The speaker provides examples of validated gaps in different market scenarios.

• When price comes back to a validated gap, it is expected to reject from that area.

How to Validate Gaps and Use Institutional Candles

In this section, the speaker explains how to validate gaps and introduces the concept of institutional candles. They discuss how these techniques can help traders make more informed decisions.

Validating Gaps

• Gaps can be validated by observing if they caused a structure break or failed structure break previously.

• A validated gap indicates significant buying or selling pressure at that level.

• Traders can expect price rejection when it comes back to a validated gap.

Institutional Candles

• Institutional candles are categorized into supply candles (last bullish candle before a bearish drop) and demand candles (last bearish candle before a bullish rally).

• Supply candles indicate selling pressure, while demand candles indicate buying pressure.

• The speaker provides examples of supply and demand candles in different market scenarios.

Understanding Institutional Candles

In this section, the speaker further explains the concept of institutional candles and their significance in analyzing market trends.

• Supply candles are the last bullish candle before a bearish drop.

• Demand candles are the last bearish candle before a bullish rally.

• By identifying supply and demand candles, traders can gain insights into market sentiment and potential price movements.

The transcript is already in English, so there is no need to translate it.

Bearish Candle Before a Bullish

This section discusses the occurrence of a bearish candle before a bullish one.

Bearish Candle Before a Bullish

• A bearish candle is observed before a bullish candle.

• This pattern indicates a potential reversal in the market.

• Traders should pay attention to this pattern as it may signal an upcoming bullish trend.

Timestamps are not available for this section.