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Gallow Review
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Gallow Review

Live Stream Issues and Market Analysis

Introduction to Live Stream Problems

  • The speaker addresses issues with YouTube's volume during live streams, noting that a previous stream was unexpectedly cut off after 35 minutes without their knowledge.
  • They express frustration over the technical difficulties and decide to present the content as a pre-recorded video instead.

Market Analysis Overview

  • The speaker discusses the importance of understanding price action in relation to the opening bell at 9:30 AM, emphasizing how annotations can clarify market movements.
  • They highlight the significance of knowing the opening range gap and its implications for trading strategies.

Key Trading Levels and Strategies

  • A specific level of 20,600 is mentioned; if not surpassed, it could lead to a sell-off towards lower levels within the opening range gap.
  • The concept of "first presented fair value gap" is introduced, which should be monitored throughout the week for better trading insights.

Fair Value Gap Insights

  • The speaker explains how trading above 20,600 would likely result in revisiting earlier fair value gaps as potential reversal points.
  • If prices do not rise above this level, they predict a downward trend targeting lower quadrants of the opening range gap.

Trading Dynamics During Market Hours

  • Analyzing electronic trading hours reveals patterns where price movements interact with established fair value gaps.
  • The discussion includes how traders can utilize institutional order entries based on market dynamics observed during lunchtime macro periods.

Conclusion on Market Behavior

  • The speaker notes that market behavior tends to revert back through swing highs when there’s been a consistent drop in prices.

Market Analysis and Fair Value Gaps

Understanding Volume Imbalances

  • The speaker discusses the significance of volume imbalances, noting that the market trades into a higher volume area, which is not random. This indicates a potential bearish sentiment as bodies remain within lower volume areas.
  • The analysis highlights that the market's behavior suggests bearishness due to its inability to break above certain levels, indicating a consolidation around fair value gaps.

Price Action and Fair Value Gaps

  • A breakdown occurs after reaching a fair value gap, with price action failing to touch it again. This reflects an inversion in expected behavior where the gap acts as a premium array.
  • The discussion includes how price interacts with institutional overflow entry points and opening range gaps, emphasizing sell-side activity below established lows.

Relative Highs and Market Manipulation

  • The speaker refers to specific short-term highs on a one-minute chart, identifying them as relative equal highs. They suggest that these could be manipulated by market forces during news events.
  • There’s an emphasis on disregarding manipulative wicks when analyzing price action; focusing instead on relative equal highs can provide clearer insights into potential market movements.

Fibonacci Levels and Market Structure

  • The use of Fibonacci retracement levels is discussed, particularly anchoring from significant highs to identify key midpoints that serve as reference points for future price action.
  • By focusing solely on the 50% level of Fibonacci rather than extremes, the speaker aims to highlight critical areas of interest for traders regarding consequent encouragement levels.

Conceptual Framework: "Gallow" Trading Strategy

  • The term "Gallow" is introduced metaphorically; it represents trading strategies based on psychological levels where prices are likely to reverse or consolidate before moving lower.
  • The speaker illustrates how this concept applies in real-time trading scenarios, emphasizing the importance of observing body closures against significant wicks for accurate predictions about future price movements.

Conclusion: Algorithmic Behavior in Trading

  • Finally, there’s an assertion that algorithms will reference specific inefficiencies in price movement (like wicks), which traders can leverage for better decision-making.

Understanding Market Dynamics and Personal Trading Philosophy

Entry Strategy and Market Conditions

  • The speaker discusses their entry strategy using candlestick patterns, emphasizing the importance of timing when executing trades. They note that their entry point was slightly off due to rapid market movements.
  • Initially, the speaker aimed for a premium range in trading, which was achieved. They explain how this level can be used as a reference point for bearish market conditions.
  • In a bearish market, the same reference point serves as a reclaimed entry point, indicating that price is expected to move lower as part of a sell program.

Unique Insights on Trading Techniques

  • The speaker highlights their unique approach to trading by combining small stop losses with specific candlestick analysis. They mention concepts like "Gallow" and "consequent encroachment," which are not commonly found in other educational resources.
  • Acknowledging criticism from others in the trading community, the speaker asserts that their methods differ significantly from traditional teachings and emphasizes originality in their strategies.

Distinction from Other Educators

  • The speaker references Al Brooks and clarifies that they have not studied under him. They challenge anyone claiming similarities between their work and Brooks' material to find evidence supporting such claims.
  • They express frustration over others attempting to replicate or claim credit for their methodologies without understanding the depth of what they teach.

Historical Context of Trading Concepts

  • The speaker reflects on how many current educators fail to grasp or convey advanced concepts developed since 1996. They assert that much of what they teach is original and has been codified over decades.
  • Emphasizing the uniqueness of their insights, they invite listeners to study previous works but maintain confidence that no one else has articulated these ideas before them.

Personal Journey into Trading

  • The speaker recounts starting their trading journey at age 14 after being introduced by family members. This early exposure sparked an enduring interest in mastering price action.

Understanding Market Manipulation and Trading Strategies

The Nature of Market Control

  • The speaker expresses gratitude for the lack of a free market, suggesting that manipulation provides an advantage to traders.
  • Many people are uncomfortable with the idea of algorithms controlling prices, as it challenges their understanding of market dynamics.
  • The term "market makers" is critiqued; they are seen more as dealers using the same price feeds rather than creating markets.

Forex vs. Futures Trading

  • The speaker contrasts Forex with Futures trading, stating that Forex lacks consistency in pricing across brokers, leading to losses.
  • A personal journey through various markets is shared, highlighting a shift from agricultural commodities to currency and index futures.

Insights on Trading Techniques

  • The speaker emphasizes recognizing repetitive patterns in price action and making precise trades based on these insights.
  • During a live presentation, the concept of "fair value gaps" was introduced as a critical trading strategy not widely understood by others.

Mentorship and Knowledge Sharing

  • There is skepticism about other mentors claiming expertise; the speaker believes many lack comprehensive understanding.
  • Confidence in predicting high and low points on charts is expressed, emphasizing responsibility in sharing such knowledge.

Unique Trading Concepts

  • The speaker warns against misinformation regarding trading concepts like "institutional candles," asserting that true understanding requires deeper knowledge.
  • A distinction is made between basic trading strategies taught publicly versus proprietary insights held privately by the speaker.

Practical Application of Fair Value Gaps

  • Basic concepts like fair value gaps were previously presented but often overlooked by traders who fail to backtest them adequately.

Understanding Trading Concepts and Market Dynamics

Opening Range and Exit Strategy

  • The speaker discusses the significance of the opening range gap in trading, indicating a clear exit point marked by a sideways carrot symbol.
  • Emphasizes that their trading concepts are advanced compared to others, highlighting competition from those selling lower-quality courses.

Critique of Traditional Trading Methods

  • Critiques traditional trading teachings as outdated, claiming they lack understanding of price movements and setup timings.
  • Asserts knowledge of where fair value gaps will form before they do, claiming to have demonstrated this in live streams.

Performance Validation

  • Claims superiority over competitors by stating that no one can match their methods, which are described as straightforward yet effective.
  • Discusses specific volume imbalances observed during trades and how these inform expectations for market movement.

Market Behavior Analysis

  • Analyzes potential market behavior based on price levels, suggesting that if certain thresholds are breached, it could lead to significant downward movement.
  • Points out the challenge posed by short attention spans in social media users who may not grasp complex trading principles.

Educational Approach and Principles

  • Highlights the need for critical thinking in trading education versus the desire for quick solutions among many traders today.
  • Stresses that their teachings are grounded in real principles rather than conjecture, aiming to provide genuine insights into market dynamics.

Time Distortion and Market Timing

  • Describes how price movements relate to previously outlined gaps during specific time frames within the trading day.
  • Explains how trades interact with fair value gaps and volume imbalances throughout different times of day.

Conclusion on Market Movements

Channel: The Inner Circle Trader
Video description

Government Required Risk Disclaimer and Disclosure Statement CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.