87.

Introduction to Trading Concepts

Housekeeping and Disclaimer

• The speaker emphasizes that the session does not provide financial advice and is not a signal service.

• The focus will be on understanding price movements, including predicting where prices will go and how to capitalize on these movements.

Learning Objectives

• The primary goal should be learning the trading process rather than making money; focusing on mastery leads to better results.

• Mastery in trading requires hard work and time; success in reading price does not guarantee profits for everyone.

Focus and Strategy in Trading

Importance of Focus

• Emphasizes the necessity of focus; distractions from various charts can lead to losses.

• Traders should concentrate on mastering one chart instead of spreading their attention across many assets.

Chart Selection

• Introduces the concept of using specific charts, such as the inverse dollar index, British pound futures, Euro, NASDAQ, S&P, Bitcoin, Ethereum, gold, and silver for focused learning.

Learning Process Over Eight Weeks

Structured Learning Approach

• For eight weeks, participants are advised against trading new opportunities; instead, they should hone their skills with selected charts.

• Most knowledge shared is not new but presented uniquely based on the speaker's experiences.

Continuous Learning

• The speaker highlights ongoing mentorship as crucial for personal growth in trading skills.

Accessing Resources and Community Support

Group Access and Content Availability

• Participants will have permanent access to group content as long as Telegram exists; recordings will be uploaded after each session.

Engagement Timeline

Understanding Market Dynamics and Trading Concepts

Introduction to Learning Process

• The instructor emphasizes that answers may not always be straightforward; learners are encouraged to explore independently while the instructor remains available for questions until May 1st.

• Sessions will occur on Sundays at midnight UTC and again 9-12 hours later, ensuring global accessibility. Content will remain consistent but may vary in emphasis based on prior sessions.

Importance of Definitions

• A foundational understanding of definitions is crucial for effective learning; speaking the same language prevents confusion and enhances comprehension.

Key Trading Concepts

Plutus and Market Mechanics

• "Plutus" represents the Supreme Market Maker, akin to concepts like "composite man" or "algo," influencing every market movement observed on charts.

Time Frames in Trading

• Focus should be limited to weekly, daily, and 4-hour time frames, with a 15-minute frame for low time analysis. Other time frames should be disregarded for eight weeks.

Identifying Pivots

• A pivot is identified through specific candle patterns: high followed by higher highs and then a lower high indicates a pivot point. Conversely, lower lows followed by a higher low also signify a pivot.

Price Movement Analysis

Expanding vs. Consolidating Prices

• Price movements can either expand or consolidate—these are the only two states price can exist in during trading.

Rejections and Trends

• Rejections occur at significant support/resistance levels defined by high-timeframe PD arrays; these lead to pivots when price fails to break through.

Advanced Trading Strategies

Understanding Ranges and Trends

• In ranging environments, both highs and lows are rejected; trending markets exhibit expansive moves followed by consolidation phases.

Judas Swing Explained

• The "Judas swing" refers to false breakouts where traders are misled into making poor decisions based on manipulated price action.

Algorithmic Market Behavior

Market Algorithms

Understanding Market Dynamics and Trading Concepts

Algorithmic Delivery in Trading

• The speaker discusses the concept of algorithmic delivery, emphasizing its role in predicting currency values like Euro at specific times (1.853 and 1.0853).

• Focus is placed on buy-side and sell-side delivery, highlighting the importance of gathering liquidity to move against forced sellers when liquidity below lows is raided.

State Changes in Delivery

• A change in state from sell-side to buy-side delivery occurs when all buy stops are taken until none remain.

• The complexity of price delivery (PD) arrays is introduced, suggesting a hidden language exists within market operations that complicates understanding.

Key Components of PD Arrays

• The speaker narrows down the focus to three key PD arrays: highs and lows (pivots), fair value gaps (FVG), and order blocks.

• Fair value gaps are defined as areas where there’s a significant difference between candle bodies without wicks, indicating potential trading opportunities.

Understanding Fair Value Gaps

• An example illustrates how fair value gaps appear when there's a wick on the low of a candle while respecting previous highs.

• Order blocks are described as changes in state delivery; they occur after vigorous price movements that take liquidity while leaving behind fair value gaps.

Practical Application of Order Blocks

• The true meaning of order blocks remains undisclosed, with references made to existing resources that may not fully explain their function.

• An up-close candle followed by significant price movement indicates an order block if it takes liquidity and creates fair value gaps.

Introduction to Turtle Soups

• "Turtle soups" refer to false breakouts before reversals; the speaker promises to teach how to identify these for effective trade entries.

• Emphasis is placed on practice over theory; participants are encouraged to select one asset (Euro, NASDAQ, Bitcoin, or Gold), analyze charts for highs/lows/FVG, and share findings for feedback.

Homework Assignment

Understanding Market Movements

Reasons for Market Movement

• The market moves primarily for two reasons: to take out old highs or lows and to rebalance or imbalance. These are the only factors that influence market movement.

• External factors like federal interest rate announcements or building contracts do not drive market prices; they are distractions from the fundamental reasons behind price changes.

Price Action and News Correlation

• The speaker emphasizes that news follows predetermined price movements rather than causing them, suggesting that traders should focus on chart patterns instead of news events.

• An example is given where a short position was anticipated based on chart analysis, which proved correct despite contrary news being released shortly after.

Timing and Reaction to News

• The speaker illustrates how markets can react instantly to news releases, indicating that traders often have prior knowledge of price direction before official announcements.

• This rapid reaction suggests a level of predictability in market movements, likening it to fixed outcomes seen in other high-stakes environments like the Olympics.

Learning and Trading Dynamics

• The importance of individual study is highlighted; trading is ultimately a solo endeavor where personal decision-making prevails over group dynamics.

• Participants are encouraged to post their homework in a designated channel for collective learning while emphasizing the necessity of independent thought in trading decisions.

Fair Value Gaps (FBGs)

• A specific example of Fair Value Gaps (FBGs) is discussed, focusing on candle formations and their significance in identifying trading opportunities.

• Understanding FBGs will provide foundational knowledge necessary for effective trading strategies, equipping participants with skills for precise entries into trades.

Course Objectives