2022 ICT Mentorship Episode 19

Name: 2022 ICT Mentorship Episode 19
Uploaded: 2022-04-21T04:27:44.000Z
Duration: 4 h 8 min 36 s
Description: This is a long insight rich lecture. Take notes...

Introduction

In this section, the speaker introduces himself and explains that he will be blending his private mentorship group with his YouTube community. He also mentions that he went on holiday and found some interesting things which he will bring up in the coming weeks.

Blending Communities

The speaker has a private mentorship group and a YouTube community.

He will be blending both communities together for this video.

He promises to cover what he was unable to cover in his Tuesday night commentary for the YouTube community.

He also promises to give commentary to his private mentorship group.

Explanation of Video Format

In this section, the speaker explains why he is doing this type of video format and how it will benefit both communities.

Purpose of Video Format

The speaker is blending both communities together because he has a lot of work to do when producing videos for his private group.

This video format allows him to save time by combining both commentaries into one video.

The speaker promises to cover what he promised in his Tuesday night commentary for the YouTube community as well as give commentary to his private mentorship group.

Private Mentorship Group vs. YouTube Community

In this section, the speaker explains the difference between his private mentorship group and his YouTube community.

Difference Between Groups

The private mentorship group gets access to information before it happens.

They get analysis before it happens, which is broken down by the speaker.

The YouTube community does not get access to information before it happens.

Moving Away from Videos

In this section, the speaker talks about moving away from videos and towards forum posts only.

Moving Away from Videos

Starting June 1st, 2022, the server will no longer host videos.

The speaker's private mentorship group has been told to download all of their videos.

The speaker will be moving towards forum posts only.

This makes things easier and quicker for everyone and doesn't cost the speaker a fortune to run the community.

Conclusion

In this section, the speaker concludes by summarizing what he covered in the video.

Summary

The speaker blended his private mentorship group with his YouTube community for this video.

He promised to cover what he was unable to cover in his Tuesday night commentary for the YouTube community as well as give commentary to his private mentorship group.

The private mentorship group gets access to information before it happens while the YouTube community does not.

Starting June 1st, 2022, the server will no longer host videos and will move towards forum posts only.

Private Mentorship Group

In this section, the speaker talks about his private mentorship group and how it can help people become successful analysts.

The Mentorship Group

The private mentorship group is for charter members who want to learn how to read the markets better than anyone else.

The group provides a working model with easy rules that can make someone a consistently successful analyst.

The speaker promises that people will learn how to read the markets better than anyone else and he proves it every week.

People in the YouTube mentorship are excited because they see results by following what the speaker outlines.

Bullish Dollar

In this section, the speaker talks about being bullish on the dollar and gives some targets for where it might go.

Being Bullish on Dollar

The speaker has been bullish on dollar for a while now and thinks it should keep being pressed higher.

He mentions hitting 101.947 as one of their targets but doesn't call a top in dollar.

If they go below certain lows, it could signal a potential turn or near-term high forming in the marketplace.

Sloppy Price Action

The speaker allows for sloppy price action and mentions seeing some of it recently.

He's not in a hurry to make decisions about taking live trades yet because there's been holiday volume.

Understanding Algorithmic Price Action

In this section, the speaker discusses how algorithmic price action is delivered by an algorithm that is not driven by supply and demand or harmonic patterns. He emphasizes the importance of understanding this concept to be successful in trading.

Algorithmic Price Action

The speaker shows an hourly chart where price moved up to the 101 level and left a clean formation, indicating algorithmic price action.

Algorithmic price action is delivered by an algorithm that is not driven by supply and demand or harmonic patterns.

To be successful in trading, one must understand that markets are driven by algorithms and not retail logic or indicators.

The speaker notes that his trades were only profitable when he was in line with what the algorithm would do.

Applying Fractal Nature of Patterns to Different Markets

In this section, the speaker explains how fractal nature of patterns can be applied to different markets such as forex, bonds, futures, and crypto.

Fractal Nature of Patterns

The speaker shows an hourly chart where fractal nature of pattern exists.

By putting a fib on the parent price swing from low to high on the chart, it's possible to find out 50 percent of that which puts you about in a certain area.

The same fractal nature of pattern can be applied to any market including forex, bonds, futures and crypto.

English Understanding the Narrative of Price Action

In this section, the speaker discusses how to understand the narrative of price action and identify imbalances in the market.

Identifying Imbalances in the Market

The volume of a move is inside the bodies of the candle.

Look for small imbalances that can fill gaps and create new moves.

Institutional order flow is rooted on higher time frame bias.

Avoiding Picking Tops and Bottoms

Do not try to pick tops and bottoms in the marketplace.

There is a lot of opportunity between intermediate term highs and lows.

Revisit levels where there is unfinished business.

English Staying Mindful When Trading Forex

In this section, the speaker emphasizes staying mindful when trading forex and avoiding preconceived notions or expectations.

Staying Mindful When Trading Forex

Be mindful when trading forex and avoid preconceived notions or expectations.

Listen and understand what is being taught instead of waiting for specific buzzwords.

Do not make sentiment ideas based on one sentence or notation.

Opportunities Between Intermediate Term Highs and Lows

There are many opportunities between intermediate term highs and lows.

Being bullish on dollar means being bearish on all foreign currencies versus US dollar.

English Analyzing Resistance Levels in Forex Trading

In this section, the speaker analyzes resistance levels in forex trading and discusses the possibility of retrading back to the 100 level.

Analyzing Resistance Levels

Liquidy is resting below swing lows, indicating resistance.

The market may retrace back to the 100 level or dip into 99.95 or 92 before continuing upward.

Hourly Fair Value Gap and Order Blocks

In this section, the speaker discusses hourly fair value gaps and order blocks. He explains how to identify bearish order blocks using the low of the lowest up close candle and its opening price. The speaker also mentions that he has four books coming out, one of which will delve into order block theory.

Hourly Fair Value Gap

The speaker shows an hourly fair value gap on a chart.

He explains that there is an imbalance in the 15-minute timeframe.

The chart shows a little bit deeper close before it comes back up.

Bearish Order Blocks

The speaker identifies bearish order blocks using the low of the lowest up close candle and its opening price.

He explains that these candles represent where price was delivered on the upside, even though they are indecisive candles.

The speaker mentions that he has purposely held back information about order block theory until his books are released.

Order Block Theory

The speaker states that there are a lot of people who have falsely stated that they created or copied order block theory.

He mentions that he has four books coming out, one of which will divulge a lot about order blocks.

The second volume in his trilogy will correct a lot of people who think they need to talk about blocks because it is actually harming people who pay them or listen to them.

Algorithmic Trading Logic

In this section, the speaker talks about algorithmic trading logic. He uses an analogy to explain why candles represent an order block and how algorithms use reference points to go back to when making trades.

Algorithmic Trading Logic

The speaker explains that candles represent an order block because they mark where there was a change in the state of delivery.

He uses an analogy of a bookmark in a book to explain how algorithms use reference points to go back to when making trades.

The speaker mentions that the algorithm doesn't necessarily know where your stop is at any given time, but it's based on the logic that is really promoted and regurgitated all the time in books and seminars.

Trailing Stop Loss Mentality

The speaker talks about trailing stop loss mentality and how it works.

He explains that he's not a big fan of rushing his stop and teaches the way he does because he's looking for things that make sense.

The speaker mentions that he's not trying to strangle the marketplace.

Understanding Short-Term vs Long-Term Bias

In this section, the speaker discusses how short-term movements in the market can be counter to long-term bias. He warns against trying to make quick trades without a solid understanding of higher time frame order flow.

Short-Term vs Long-Term Bias

Displacement creates fair value and lowers the narrative.

Short-term movement is counter to long-term bias.

Trying to make quick trades without understanding higher time frame order flow will result in losing money.

Trusting and studying higher time frame bias is key to successful trading.

Trading Against Higher Time Frame Overflow Bias

In this section, the speaker discusses how some traders may prefer contrarian setups that go against higher time frame overflow bias. However, he emphasizes that this approach should only be taken by experienced traders who have developed their own style.

Trading Against Higher Time Frame Overflow Bias

Some traders prefer contrarian setups that go against higher time frame overflow bias.

This approach should only be taken by experienced traders who have developed their own style.

Learning how to trust higher time frame bias is important for all new students.

Market Movement and Structure

In this section, the speaker explains his approach to analyzing market movement from discount to premium and within market structure. He emphasizes the importance of learning his specific criteria for identifying opportunities.

Market Movement and Structure

The speaker analyzes market movement from discount to premium and within market structure.

Learning specific criteria for identifying opportunities is key.

The speaker does not subscribe to traditional views on trend analysis.

Familiarity with certain patterns does not necessarily indicate an opportunity.

Example of Bias in Action

In this section, the speaker uses an example from the EUR/USD daily chart to illustrate how bias can play out in the market. He emphasizes that his approach is based on understanding the internal engines that drive price deliveries.

Example of Bias in Action

The speaker uses an example from the EUR/USD daily chart to illustrate how bias can play out in the market.

Understanding the internal engines that drive price deliveries is key to successful trading.

The speaker's approach is not based on traditional trend analysis.

Introduction to Trading

In this section, the speaker introduces the personal nature of trading and how it can reveal a lot about oneself. He emphasizes that trading requires responsibility, adherence to rules, and time.

The Personal Nature of Trading

Trading reveals a lot about oneself.

Those who resist learning from their mistakes will never learn how to trade properly.

The speaker lectures and teaches what traders will encounter in their journey.

Profitable Systems in Trading

Profitable systems are linked to adherence to rules, sound money management, not overtrading or overleveraging.

Sound money management is key to profitability in trading.

A simple strategy with sound money management can be profitable over time.

Refining Your Trading Strategy

Limiting the number of trades, refining asset classes and markets traded, and specifying days and times for trading can help refine your trading strategy.

Refining your strategy down to an algorithm or recipe can help improve consistency in trading.

Teaching Style and Trading Strategies

In this section, the speaker discusses his teaching style and trading strategies. He emphasizes that he does not force a specific entry strategy on any student but rather points to where the market is going. He encourages students to find their own style in the tools and concepts he teaches.

Finding Your Own Trading Style

The speaker's teaching style allows for students to find their own style in the tools and concepts he teaches.

He has some extremely good traders, but also some failures.

Students should not gang up on those who are struggling but instead be encouraging.

Day Trading vs Position Trading

In this section, the speaker discusses day trading versus position trading. He acknowledges that some of his students cannot day trade due to other commitments such as work or school.

Choosing a Trading Approach

Some of the speaker's students cannot day trade due to other commitments.

Position trading takes longer than day trading but can still be profitable.

It is important for traders to choose an approach that works best for them.

Forex Market Analysis

In this section, the speaker explains why he is not currently touching forex markets and why they are not moving well at present.

Reasons for Slow Forex Market Movement

Trade is being hindered causing currencies not to move well.

Noteworthy traders are not talking about currencies right now because it is a quiet asset class.

The current slow market makes it difficult for traders to learn effectively.

Euro Dollar and Index Futures

In this section, the speaker discusses the bearish scenario for index futures and how it could affect the Euro Dollar. He also talks about how he will use intraday charts to outline where he thinks the draw on liquidity is.

Bearish Scenario for Index Futures

The speaker is looking for evidence that a bearish scenario for index futures will continue.

He mentions that there were five days below an old low on a daily basis.

The speaker emphasizes that traders need to learn how to tape read in order to be consistent in their trading.

Using Intraday Charts

The speaker explains that he will use intraday charts during his live streams to point out where he thinks intraday price action is going.

However, he warns viewers not to take this as an invitation to trade based on his analysis.

Importance of Tape Reading

In this section, the speaker stresses the importance of tape reading and shares his own experience of being profitable due to dumb luck during a bull market.

Importance of Tape Reading

The speaker emphasizes that traders need to learn how to tape read in order to be consistent in their trading.

He notes that navigating through asset classes with experience is key.

Personal Experience

The speaker shares his own experience of being profitable due to dumb luck during a bull market.

He addresses concerns about whether teaching others will change the algorithm or lead authorities after traders who use his methods.

Futures vs Forex

In this section, the speaker discusses why he prefers futures over forex and how traders should not be part of a team mentality when it comes to trading.

Futures vs Forex

The speaker explains that he has a vested interest in proving to the YouTube community that he knows futures markets better than forex.

He notes that asset classes move in and out of popularity and traders need to navigate through them with experience.

Team Mentality

The speaker warns against having a team mentality when it comes to trading, as both futures and forex have their own advantages.

Trading Strategies for Euro Market

In this section, the speaker discusses his trading strategy for the Euro market and how he teaches his students to identify optimal trade entry points.

Up Close Candles are Opportunities to Go Short

The speaker teaches that liquidity below the low is where the market is really going to go.

Up close candles are just opportunities to go short and then drive it lower.

Optimal Trade Entry Range

The 62% and 79% retracement levels are what the speaker teaches as optimal trade entry range.

It's not optimal trading entry for the setup.

A nice little run in here would be a contrarian trade against the bias that he's suggesting to his private group which has also been shown to you in the YouTube community being bearish on euro until they got below that low.

Waiting for Displacement

In this section, the speaker talks about waiting for displacement in order to determine where the market will go next.

No Clean Level It's Going To Go To And Then Reverse

At present, there is no clean level that it's going to go to and then reverse.

We're back in that sideways consolidation congestion area and we have to wait for displacement.

Wait for something like an upside or downside breakout.

Slow Volume and Movement

The speaker discusses the slow volume and movement of the market, as well as the typical holiday pattern. They also mention a range high and low, with 50% of it being in a certain area.

Slow Volume and Movement

The market is experiencing slow volume and movement.

This is typical during holidays.

There is a range high and low, with 50% of it being in a certain area.

No Trade Setups at the Moment

The speaker talks about not seeing any trade setups on daily, four-hour, or hourly charts at the moment. They also mention that they are teaching rather than giving prognostications.

No Trade Setups at the Moment

There are no trade setups on daily, four-hour, or hourly charts at the moment.

The speaker is neutral near-term on dollar but still long-term bullish.

They are teaching rather than giving prognostications.

Clean Fair Value on 15 Minute Time Frame

The speaker discusses fair value on a 15-minute time frame. They explain what they mean by "clean" and discuss algorithmic displacement.

Clean Fair Value on 15 Minute Time Frame

Fair value is clean on a 15-minute time frame.

"Clean" means there was a nice run up followed by an energetic run higher that was algorithmic.

Algorithmic displacement creates gaps in the chart.

Short Term High Will Run Back Up Into Itself

The speaker talks about short term highs running back up into themselves. They also discuss how new traders may find it difficult to wait for a trade setup.

Short Term High Will Run Back Up Into Itself

A short term high will run back up into itself.

New traders may find it difficult to wait for a trade setup.

Bread and Butter Trade

The speaker discusses a bread and butter trade, which is not recommended for new traders. They also talk about the importance of backtesting.

Bread and Butter Trade

A bread and butter trade involves reaching up into the 62 retracement level on the hourly chart.

This type of trade is not recommended for new traders.

Backtesting is important to determine if a trading strategy works.

Importance of Patience in Trading

In this section, the speaker emphasizes the importance of patience in trading and how rushing can lead to making mistakes.

Rushing Leads to Mistakes

Rushing leads to mistakes because traders want to feel like they know right away what works for them.

There is no right way in trading except for blowing your account.

It takes time to figure out what you are looking for, and there will be a lot of fumbling along the way.

The Mental Perspective on Trading

In this section, the speaker talks about how traders should approach trading from a mental perspective and that it takes time to develop a successful strategy.

Approach Trading Like a Business

Traders should treat trading like a business and not just as something they are studying.

It's important to put time and effort into trading every day, whether transactions are profitable or not.

Backtesting, keeping a trade journal, annotating charts, and referring back to daily charts are all important aspects of treating trading like a business.

Developing Successful Strategies Takes Time

It takes time for traders to figure out what they want to do and evolve into successful speculators.

Watching videos or studying for 40 days or even 120 days is not enough; developing successful strategies takes time.

Analysis of British Pound vs. US Dollar

In this section, the speaker analyzes the British Pound vs. US Dollar currency pair and maintains his bearish stance on it.

Long-Term Bullish Stance on Dollar

The speaker maintains his bearish stance on British Pound vs. US Dollar because he has a long-term bullish stance on dollar.

He expects all currencies, including Euro, Pound, and Aussie, to eventually go lower.

Hourly Chart Analysis

There is nothing noteworthy on the hourly chart of British Pound vs. US Dollar.

The speaker maintains a bearish stance on cable as long as it stays below the fair value gap.

15-Minute Chart Analysis

The 15-minute chart of British Pound vs. US Dollar is messy with no clear trading opportunities.

Traders should consider closing charts and turning off their computers when they encounter such scenarios.

Importance of Patience in Trading

In this section, the speaker emphasizes the importance of patience in trading and explains why it is crucial to know when not to trade.

The Markets are Unpredictable

The speaker has not been trading the British pound for months because it is not delivering what he is looking for.

Trade has been affected by the current state of the world, and this will manifest itself in currencies.

There is something about to happen that will make these markets move around a lot.

Knowing When Not to Trade

Knowing when not to do something is crucial because it keeps you from blowing your account, being undisciplined, and gives you peace of mind.

When your market is performing poorly, take a break and don't trade. You don't need to trade every day.

Understanding why today or tomorrow is a day that's highly probable that your bias will deliver to a target that you already know is likely to be treated too.

Avoiding Gambling Mentality

If you can't reasonably outline where the market is going next higher or lower, then you're gambling.

Work with the lowest leverage and try to double your account if you don't have patience; otherwise, you're a gambler trying to rush into making big money.

Overleveraging leads to blowing up accounts.

Trading and Discipline

In this section, the speaker discusses how trading is not for everyone and requires discipline and responsibility. He emphasizes the importance of adhering to a routine and being accountable to someone you trust. The speaker also talks about creating a like-minded community and empowering individuals to be independent thinkers.

Trading is not for everyone

Trading requires discipline, responsibility, and adherence to rules.

Not everyone is cut out for trading, and it's okay to recognize that.

Mental illness can manifest as finding fault with everything but oneself.

Importance of routine and accountability

Responsible discipline involves adhering to a routine.

Being accountable to someone you trust can help keep you on track.

A like-minded community can provide support and encouragement.

Empowering independent thinking

The speaker wants individuals to be independent thinkers.

He encourages people not to believe him blindly but rather look at the markets with the lens he provides.

Consistency is key in trading, but it doesn't mean that every day will be the same.

Avoiding Manipulated Markets

In this section, the speaker talks about avoiding heavily manipulated markets. He uses an analogy of a rattlesnake on a trail to illustrate his point. The speaker emphasizes that just because one market isn't showing clear price action doesn't mean that all markets are dead.

Avoiding manipulated markets

Heavily manipulated markets should be avoided.

Index futures are currently being heavily manipulated.

Treat these times in the marketplace like encountering a rattlesnake on a trail - back away from it.

Lower expectations

Lower your expectations on yourself; you don't need to be an Olympic trader.

Consistency is key; find a bread-and-butter setup once a week, stick with it, and practice good money management.

Two Weeks Without Taking a Trade

In this section, the speaker talks about how taking a break from trading can affect one's mindset and why changing one's trading style is not the solution.

The Impact of Not Trading for Two Weeks

Not trading for two weeks can have different effects on traders' mindsets.

Some traders may become anxious or restless, while others may consider changing their trading style.

Both reactions are wrong because they do not address the root cause of the problem.

The Importance of Time and Price in Trading

The speaker emphasizes that time and price are essential elements in trading.

Using too many indicators or relying on complex systems can lead to confusion and poor decision-making.

Traders should focus on analyzing price action and asking themselves key questions about where the market has been and where it is likely to go.

Avoiding Common Pitfalls in Trading

Many books, teachers, and online resources promote strategies that result in significant losses for traders.

Traders should avoid holding onto these strategies with a "death grip" and instead focus on finding clear signals in price action.

If the market is heavily manipulated or unclear, it is best to stay out rather than gamble.

Analyzing the E-mini S&P Daily Chart

In this section, the speaker provides an overview of how he analyzes daily charts using the example of E-mini S&P.

Identifying Key Levels

The speaker identifies swing lows as key levels to watch when analyzing daily charts.

He explains how he selects swing lows based on candlestick patterns and higher lows on either side.

The daily dealing range is the distance between two swing lows.

Understanding Price Movement

The speaker notes that the market has retraced about 50% of its price move, indicating a potential equilibrium point.

He emphasizes the importance of understanding price movement and identifying clear signals in price action.

Traders should avoid entering markets that are heavily manipulated or unclear.

Understanding Daily Bias

In this section, the speaker discusses how to understand daily bias and make profitable trades based on it.

Rooted in Sound Logic

The speaker emphasizes that understanding daily bias is not about showing off or being smart, but rather rooted in sound logic.

The daily chart retraced down into half of the move from the low to high, indicating a bullish bias.

Candle Analysis

The midpoint of a candle represents the mean threshold or median of an order block.

When analyzing hourly and lower time frames, the speaker uses an up-close candle as a reference point.

If the market goes back to equilibrium or short-term discount, there is a likelihood that the next day's bias will be bullish.

Profitable Trading

If it's likely that the market will go higher on the next day, traders should expect it to do so even if it doesn't move immediately.

There are several targets for profitable trading including candle lows, opens, mean thresholds of order blocks and highs.

Traders should focus on picking the easiest target for profitability when multiple targets are available.

Understanding Short Term Low Sell Side Liquidity

In this section, the speaker explains how they took out short term low sell side liquidity and purged cell stops. They also discuss how the market is likely to revert back to the high in the last three days.

Short Term Low Sell Side Liquidity

The speaker explains that they took out short term low sell side liquidity.

They mention that this move dropping down that high is going to have what resting above it buy stops.

The speaker emphasizes that listeners should listen to this part of the video a few times because it's exactly what nobody is teaching.

Dropping Down to Hourly Chart

In this section, the speaker discusses how they dropped down to the hourly chart and how there was sloppiness starting in the week. They also mention their bias for thinking that things were going higher.

Dropped Down to Hourly Chart

The speaker mentions dropping down to the hourly chart and how there was sloppiness starting in the week.

They explain their bias for thinking that things were going higher and clearing up all of this here.

Discussion About Live Sessions

In this section, the speaker talks about live sessions and what they will be doing with intraday price action. They also discuss Goldman Sachs' view on intraday trading.

Live Sessions

The speaker talks about live sessions and what they will be doing with intraday price action.

They discuss Goldman Sachs' view on intraday trading, stating that they like to say that intraday is just noise.

Understanding Relative Equal Highs

In this section, the speaker discusses relative equal highs and how they engineer buy stops for anyone chasing this going lower to think that this is the area where resistance is.

Relative Equal Highs

The speaker discusses relative equal highs and how they engineer buy stops for anyone chasing this going lower to think that this is the area where resistance is.

They explain how traders will project the same movement lower as a measured move, and why this happens because they didn't use context.

English Understanding Smart Money and Retail Trading

In this section, the speaker explains how smart money operates in the market and how retail traders can learn to trade like them. He emphasizes the importance of having a clear strategy before entering trades.

Smart Money's Strategy

Smart money collects sell stops to push prices lower and then offsets those orders with buy orders.

They buy at low prices and wait for willing buyers to sell at higher prices.

The continuum between smart money and retail traders is defined by buy/sell orders.

Importance of Having a Clear Strategy

Traders who don't have a clear strategy are gambling, not trading.

Relying on luck creates toxic thinking that can lead to false confidence.

It's important to have a real reason for every trade, even when using demo accounts.

Identifying Market Moves

Look for moves that make sense based on market conditions, such as running up into an area where there is liquidity.

Participate in moves that allow you to run up into your target area without trying to predict closing prices.

Pick periods in the marketplace where it makes sense for you to anticipate and expect certain moves.

Analyzing Price Action

Use daily delivery on candles, Judas swings below opening price, displacement to upside, run into liquidity offset sell/buyers move as indicators of price action.

Study price action carefully during moments of high volatility.

Understanding Opening Prices

In this section, the speaker discusses how to use opening prices to make trading decisions.

Midnight Candle in New York

The midnight candle in New York is used as a reference point for buying stocks.

To find the midnight candle, click on the time zone list on Trading View and select New York.

The opening price of the midnight candle is used as a reference point for buying stocks.

8:30 Opening Price

The 8:30 opening price is when news embargo lifts and a lot of news comes in around 8:30 typically.

If the opening price at midnight is lower than the price at or after 8:30, then use 8:30 as a reference point instead.

If there is a day where both prices are below the midnight candles opening price, it's an excellent opportunity to buy stocks.

Judo Swing

A judo swing is when the market moves opposite to what you expect its daily range to be.

Every week there's this type of setup inside this range.

Start backtesting and logging your charts like this, and you will see these events repeating because it's algorithmic.

Smart Money

Smart money has accumulated all cell stops, making them heavily net long.

Counterparty traders were knocked down from the marketplace, and smart money absorbed all their cell stops or caught them offside.

Retail traders are trying to go lower.

Trusting Video Clips

In this section, the speaker talks about trusting video clips and encourages viewers to learn from him without reservations.

Private Mentorship Group

Folks that are in my private mentorship group can comment if I've changed any video clip in any way to make it seem or sound like something that really didn't take place.

The comment section is open on my videos, and viewers can say whatever they want to say.

I'm proving it so that you can feel comfortable learning from me.

Learning with Confidence

There's no sales pitch here anymore.

Put down all your reservations and just grab a pen and pad and listen.

Everything discussed is paramount and crucial for understanding why this is occurring because these are the things that are going to repeat.

Algorithmic Trading

These events will not happen every single day but will be present in something every day because it's algorithmic.

You have to be flexible in navigating different markets, such as futures, forex, or bonds.

Recap of Key Points

In this section, the speaker recaps the key points discussed in the video.

Buying Stocks

Below old lows sell stocks below old highs buy stocks.

Use midnight candle opening price as a reference point for buying stocks if bullish.

Judo Swing

A judo swing is when the market moves opposite to what you expect its daily range to be.

Every week there's this type of setup inside this range.

Trusting Video Clips

Folks that are in my private mentorship group can comment if I've changed any video clip in any way to make it seem or sound like something that really didn't take place.

The comment section is open on my videos, and viewers can say whatever they want to say.

Algorithmic Trading

These events will not happen every single day but will be present in something every day because it's algorithmic.

Understanding Price Action Trading

In this section, the speaker explains how to use indicators, divergence, and Fibonacci in price action trading. He also discusses the concept of accumulation, manipulation, and distribution.

Identifying Traps in Price Action Trading

The speaker explains that traders should look for specific movements below the opening price at 8:30 and midnight.

These moves are traps that catch traders who think the price is going down.

The goal is to identify these traps and look for a very specific drop in price.

Applying Price Study on Different Time Frames

The speaker shows how to apply price study on a five-minute chart.

He asks viewers to pause the video and analyze what they see in price action.

He then shows how to find short-term swing lows and absorb sell stops.

Using YouTube Model for One-Minute Chart

The speaker demonstrates how to apply his YouTube model on a one-minute chart.

He asks viewers to pause the video and try to identify where the model exists.

He then shows how market structure shifts from bearish to bullish with consecutive down close candles forming an order block.

Reaching Objectives Outlined in 15-Minute Time Frame

The speaker explains how traders can reach objectives outlined in a 15-minute time frame by identifying relative equal highs.

He demonstrates this using an example of a fair value gap that was traded into three times before reaching its objective.

English Understanding the Opening Price on a Daily Chart

In this section, the speaker explains how he uses the opening price on a daily chart and why he doesn't use the opening price on TradingView. He also discusses how to anticipate market moves and find optimal trade entry points.

Using Midnight Candle Opening Price

The speaker does not use the opening price on a daily candle from TradingView.

Instead, he physically goes into his chart and uses the opening price at midnight once that candle begins trading at midnight as his reference point for an entry point.

He waits until 8:30 exactly when that happens to get his opening price for 8:30.

The speaker teaches his students to anticipate market moves and find optimal trade entry points using these methods.

Anticipating Market Moves

The speaker teaches his students to anticipate market moves by looking at relative equal highs on a 50-minute timeframe.

A short-term run below a short-term low takes all sale stops on that day.

On June 18th, the evening of that day, the speaker anticipated that S&P should go higher and run for those relatively equal highs on the 15-minute timeframe because they had already gone down into a deep discount daily chart and were likely to come back up and grab liquidity.

Optimal Trade Entry Points

There are two optimal trade entry points: one is real close to the low of the day, while another is during New York session opening at equities 9:30 in the morning New York time.

If you want to trade OTE pattern teach on YouTube channel then it rallies up and then you're running all the way up until we get to this candle's high here which is relative equal highs on a 15-minute timeframe.

English Analyzing Futures Contract

In this section, the speaker analyzes the 50-minute timeframe of UMP futures June contract 2022 and discusses how it looks too perfect to be true.

Analyzing Futures Contract

The speaker analyzes the 50-minute timeframe of UMP futures June contract 2022.

He thinks that it looks too perfect and pristine to be true.

A lot of people want to sell short, but he believes that they will run higher and break lower before sending it one more time higher, cleaning up that drop once more lower.

Understanding the Importance of Old Highs and Lows

In this section, the speaker talks about how to anticipate the expansion of daily candles in one direction or another by looking for pools of liquidity. He explains that old highs and lows and relative equal highs and lows are the easiest ways to look for these pools of liquidity.

Anticipating Expansion of Daily Candles

The opening price is important because it can help you anticipate the expansion of daily candles in one direction or another.

Old highs and lows and relative equal highs and lows are the easiest ways to look for pools of liquidity.

These two methods are based on sound logic that algorithms will never change.

Outliers may occur, but they do not change these rules.

Trading Mistakes

Making mistakes is part of trading, even for experienced traders.

Traders need to learn from their mistakes, whether they react too late or too soon or anticipate things that are unlikely to occur.

Trading is risky, so don't expect something magical to happen if you're not consistently profitable in a demo account.

Treating Trading as a Business

Treat trading like a business by making it as boring as possible.

Don't be influenced by trolls or hecklers in the comments section when executing trades.

Think about how you can make consistent profits with low leverage just like going to work yields a paycheck at the end of each week.

The Importance of Proper Backtesting

In this section, the speaker emphasizes the importance of proper backtesting and how it can help traders hone their edge or model.

Backtesting with Positive Reinforcement

Proper backtesting involves positive reinforcement to trick your brain into seeing experiences as positive.

By logging positive experiences in your annotations, you're filling your brain up with a lot of pseudo memories that will help you avoid negative triggering when trading live.

Avoid toxic annotations or thinking during backtesting as they can create barriers to being consistently profitable.

The Dangers of Fake Demo Money

Using fake demo money to over-leverage trades creates a barrier for finding success and conditions traders improperly.

Over-leveraging on demo accounts teaches traders to anticipate hopeful outcomes with ridiculous leverage and creates a speed bump to being consistently profitable.

Pattern Recognition and Risk Management

As price action traders, we look for signatures that repeat but nothing is guaranteed to repeat itself in the future. That's why risk management is crucial in every market.

Hone an edge or model by having a framework starting with proper backtesting and pattern recognition.

Self-Talk and Subconscious Memory

When doing backtesting, speak positively about trade setups as if you saw them happening beforehand; this self-talk helps reinforce positive patterns in your subconscious memory.

Your subconscious reverts back to those experiences that you've logged with positive reinforcement when trading live, helping you avoid negative triggering due to toxic annotations or thinking.

Using Realistic Leverage

In this section, the speaker advises viewers to use realistic leverage when trading and not to be influenced by toxic clout-chasing behavior on the internet.

Realistic Leverage is Key

The speaker advises viewers to use realistic leverage when trading.

Consistently profitable trading feels better than clout on the internet.

Don't let others influence your performance or expectations.

Overleveraging can hurt you in the long run.

Clinic on How to Operate and Engage the Marketplace

In this section, the speaker discusses how his teachings can be applied to operate and engage with the marketplace effectively.

Showcase Your Skillset

Use small leverage to showcase your skillset.

The speaker's YouTube model is a clinic on how to operate and engage with the marketplace effectively.

Thank You for Your Support

In this section, the speaker expresses gratitude for his followers' support and discusses his channel's growth.

Gratitude for Support

The speaker thanks viewers for their support but asks them not to call him "the goat" or "king."

The community is growing, and it's a healthy experience for all of us.

Overall, in this video, the speaker emphasizes using realistic leverage while trading and avoiding toxic clout-chasing behavior. He also discusses how his teachings can be applied effectively in operating and engaging with the marketplace. Finally, he expresses gratitude for his followers' support.