February 13, 2023 ES Tape Reading AM Session

Foreign

The speaker mentions the word "foreign."

Foreign

The speaker mentions the word "foreign" again.

Chart Analysis

The speaker introduces two charts - the US 500 and the E-mini S&P 500 Futures Contract. They mention trying something new and express caution in getting comfortable with both charts.

Cautious Approach

The speaker mentions being cautious due to trying something new with the charts and wanting to get comfortable with them.

Focus on ES Chart

The speaker acknowledges that having both charts can be distracting but will try their best to focus on the E-mini S&P 500 (ES) chart for real-time analysis, considering the slight delay between their speech and viewers receiving it through YouTube's broadcasting.

Broadcasting Foreign

The speaker briefly mentions "broadcasting foreign."

No Annotations on US 500 Chart

The speaker apologizes for not having annotations on the US 500 CFD chart and suggests viewers track it respectively as they compare it to the ES chart.

Opening Price Gap

The speaker discusses the opening price gap of ES, mentioning that it opened higher than Friday's closing price, creating a gap. They highlight a dashed red line representing the midpoint between these two price points.

Respect for Midpoint Level

The speaker notes that the ES has shown a willingness to respect the midpoint level so far in the morning session, indicating potential support or resistance. They mention watching volume and buy-side liquidity.

Delivered as Taught

The speaker mentions that everything observed so far aligns with their teachings. They continue to monitor volume and buy-side liquidity.

ES Liquidity Resting Above High

The speaker points out the presence of liquidity resting above the high on the ES chart.

Keeping Chart Clean

The speaker aims to keep the chart clean by not cluttering it with unnecessary annotations or indicators.

Premium and Drawdown Expectation

The speaker explains that due to ES trading higher than Friday's close, there is a premium in relation to the opening price. They anticipate a potential drawdown into price action, highlighting key levels of interest.

Key Levels of Interest

The speaker identifies key levels of interest, including Friday's high and various wicks on the chart.

Watching Opening Range

The speaker emphasizes watching the opening range and expects it to potentially draw into the gap created by the opening price.

Foreign

The word "foreign" is mentioned again.

Tomorrow's CPI Announcement

The speaker reminds viewers about tomorrow's CPI announcement and mentions having low expectations for the current session. They suggest observing a potential range and a five-handle run.

Consequent Encroachment Level

The speaker explains that the line on the right-hand side chart represents the consequent encroachment of a daily candle from February 7th, 2023. They mention potential price action around this level.

Fading Price Run

The speaker anticipates a potential price run higher that can be faded or expected to fail, possibly creating a sell signal. They mention specific levels to watch if certain conditions are met.

Observing US 500 Chart

The speaker briefly mentions observing the US 500 chart on the left-hand side.

Potential Breakthrough Levels

The speaker discusses potential breakthrough levels on the ES chart and identifies specific points where further downside movement may occur.

Downside Objectives

The speaker highlights downside objectives if certain levels are breached, including specific price targets.

Timestamps have been associated with relevant sections of the transcript to provide easy navigation for studying.

New Section

The speaker advises caution due to the expectation of a significant move in the CPI for the week. It is recommended not to try and achieve all weekly goals in one day.

Expectation of CPI Move

• Caution is advised due to the anticipation of a significant move in the CPI for the week.

• It is recommended not to try and achieve all weekly goals in one day.

New Section

The speaker discusses the consequences of the new week opening gap and whether it will aggressively drive down into a specific level.

New Week Opening Gap

• The speaker ponders whether the new week opening gap will aggressively drive down into a specific level, specifically 4099.5 zero.

New Section

The speaker mentions bones cracking, possibly referring to market volatility or uncertainty.

Bones Cracking

• The phrase "50-year-old bones cracking" is mentioned, potentially indicating market volatility or uncertainty.

New Section

Apologies are made for confusion regarding the US 500 chart.

Apology for Chart Confusion

• The speaker apologizes for any confusion regarding the US 500 chart mentioned earlier.

New Section

The speaker explains their expectations if certain levels are broken on the US 500 chart.

Expectations on US 500 Chart

• If certain levels are broken on the US 500 chart (4087.6 and 4083.9), it is expected that there will be movement below these levels.

• Reference is made to a low point at 4091.2 on the US 500 chart.

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The speaker acknowledges the sound of a recycling truck and apologizes for any audio disturbance.

Audio Disturbance

• The sound of a recycling truck can be heard in the background, and the speaker apologizes for any disruption it may cause to the audio.

New Section

The speaker expresses gratitude.

Expression of Gratitude

• The speaker expresses gratitude, although no specific details are provided.

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No significant observations are made regarding the relationship between NASDAQ and ES at this point in time.

Relationship Between NASDAQ and ES

• No noteworthy observations are made regarding the relationship between NASDAQ and ES.

• It is mentioned that there is no divergence indicating any significant movement or change.

New Section

No reason is seen for a particular action or outcome.

Lack of Reasoning

• There is no apparent reason for a specific action or outcome, although further context is not provided.

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Unclear statement about something being "foreign."

Unclear Statement

• A statement is made about something being "foreign," but it lacks clarity and context.

New Section

Focus on one instrument to teach specialization rather than jumping around different price actions.

Specialization on One Instrument

• The speaker emphasizes focusing on one instrument throughout their teaching to become a specialist.

• This approach allows for better understanding of all necessary price actions within that instrument, specifically referencing NASA (presumably NASDAQ).

New Section

Algorithms running during the 10 o'clock hour may provide insight into buy-side or sell-side liquidity and potential inefficiencies in the market.

Algorithms and Market Liquidity

• Algorithms running during the 10 o'clock hour may provide information on buy-side or sell-side liquidity.

• These algorithms can help identify any inefficiencies in the market at that time.

New Section

It is too early to determine the market's direction, and caution is advised due to high probability and uncertainty.

Uncertainty and Caution

• It is too early to determine the market's direction with high probability.

• Caution is advised due to uncertainty, as some individuals may have expectations but it does not guarantee specific outcomes.

New Section

Pre-market activity is mentioned, specifically a run before 9:30 AM.

Pre-Market Activity

• There was pre-market activity, including a run before 9:30 AM.

• No further details are provided regarding this activity.

New Section

The speaker discusses an attempt to reach Friday's close after opening at 9:30 AM and finding support at the new week opening gap.

Attempt to Reach Friday's Close

• After opening at 9:30 AM, there was an attempt to reach Friday's close.

• Support was found at the new week opening gap, indicating potential buy-side interest.

New Section

The speaker mentions a specific level on the US 500 chart that could be significant for buy-side movement.

Significant Level on US 500 Chart

• A specific high point on the US 500 chart (not mentioned) could be important for buy-side movement.

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The speaker expresses interest in observing how trading progresses after potentially breaking a certain high point on the US 500 chart.

Observing Trading Progression

• The speaker is interested in seeing how trading progresses if a certain high point on the US 500 chart is broken.

• Specifically, they want to observe how the market delivers after breaking this high point.

New Section

Unclear statement about being "there" on a 15-minute timeframe.

Unclear Statement

• A statement is made about being "there" on a 15-minute timeframe, but it lacks clarity and context.

New Section

Reference to a specific candle on February 9th, 2023, and potential momentum if certain levels are surpassed.

Candle Analysis and Momentum

• A specific candle on February 9th, 2023 (12:30 PM) is mentioned.

• If certain levels are surpassed with more momentum, it could lead to further upside movement.

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Potential price target of 4122.5 if there is strong upward momentum.

Price Target with Strong Momentum

• If there is strong upward momentum, the potential price target could be 4122.5.

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Caution advised as the market may return to Friday's closing price after a potential breakdown from current levels.

Caution and Potential Return to Friday's Close

• Caution is advised as the market may potentially break down from current levels.

• In such a scenario, it could indicate a return to Friday's closing price.

New Section

The speaker remains cautious due to an upcoming CPI report and advises against expecting significant moves without proper confirmation.

Cautious Approach Due to CPI Report

• The speaker emphasizes caution due to an upcoming CPI report.

• It is advised not to expect significant moves without proper confirmation.

New Section

The speaker advises focusing on bread and butter setups and waiting for clearer market conditions.

Focus on Bread and Butter Setups

• It is recommended to focus on reliable and familiar setups.

• Waiting for clearer market conditions is advised, especially considering the upcoming CPI report.

New Section

Positive sentiment expressed regarding current market conditions.

Positive Sentiment

• The speaker expresses positivity regarding the current market conditions, although no specific details are provided.

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No clear direction or trend identified at this point in time.

Lack of Clear Direction or Trend

• No clear direction or trend has been identified at this point in time.

• The situation appears to be evenly balanced

Understanding Candlestick Patterns

The speaker explains that candlestick patterns can be applied to various time frames, from one minute to daily charts. The longer the time frame, the more time it takes for a candle to close and start a new one.

Candlestick Patterns on Different Time Frames

• Candlestick patterns work on all time frames, including hourly, four-hourly, and daily charts.

• Longer time frames require more time for candles to complete their formation.

• Trading with lower time frame entries and higher time frame trends can lead to larger returns.

Analyzing Price Action

The speaker analyzes the price action of two indices - US 500 and ES (E-mini S&P 500 futures).

Bullish Breaker Formation

• US 500 is crouching below its bullish breaker at 4115.

• ES has already whipped through its bullish breaker.

• A screenshot of the chart is recommended as a framework for analysis.

Speed and Distance in Price Action

• The speaker looks for speed and distance in price action.

• A breakout above 4115 is expected with an expansion of range.

• A print at 4118 would confirm the bullish momentum.

Targeting Price Runs

The speaker discusses targeting price runs using Fibonacci levels and buy-side liquidity.

Using Fibonacci Levels

• Fibonacci levels help determine how far price runs can go.

• By connecting highs and lows, potential targets can be identified.

• Ripping through a high indicates a strong bullish sentiment.

Buy-Side Liquidity Above Market Value

• Buy-side liquidity above market value indicates potential upward runs.

• It is important to assess if price truly trades through a level or just taps it.

• The speaker focuses on the bodies of candles rather than wicks for analysis.

Managing Expectations

The speaker discusses managing expectations due to expected volatility in the market.

Low Expectations Due to Volatility

• Volatility is expected tomorrow, leading many traders to sit out today.

• Displacement in price and various market sentiments are anticipated.

• Waiting for significant movements and displacements is recommended.

Analyzing Price Action Continues

The speaker continues analyzing price action and compares different scenarios.

Contrasting Price Movements

• A breakout above a high that closes through and rips higher indicates strong bullish momentum.

• Comparing different scenarios helps identify potential support and resistance levels.

The transcript provided does not cover the entire video.

New Section

The speaker discusses the buy side liquidity and how it can be used as an objective for trading decisions.

Using Buy Side Liquidity as an Objective

• The buy side liquidity is at 4115.

• It can be used as a partial objective for taking a long position or making annotations.

• The speaker suggests that this level offers a good opportunity to enter a trade without necessarily taking the buy side liquidity resting at 4115.

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The speaker shares their opinion on what level to look for in terms of trading decisions.

Looking for the Run to 4118

• The speaker suggests looking for the run to 4118 because it is above the bottom liquidity and higher than previous highs.

New Section

The speaker discusses their approach to trading and managing risk ahead of CPI data release.

Managing Risk Ahead of CPI Data Release

• Due to uncertainty about market movement after CPI data release, the speaker advises being more selective in trades and keeping expectations low.

• They expect lower participation in the market before CPI data release, but anticipate increased volatility afterwards.

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The speaker emphasizes the importance of preparing for potential risks and volatility associated with economic calendar events like CPI data release.

Preparing for Potential Risks and Volatility

• Having awareness of economic calendar events helps in anticipating risks and identifying opportunities.

• With lower participation expected before CPI data release, the speaker mentions being more cautious and selective in taking setups.

New Section

The speaker discusses the potential increase in market participation and volatility after CPI data release.

Anticipating Increased Market Participation

• After CPI data release, there is likely to be a rush of participants entering the market.

• This increased participation can create opportunities for trading.

New Section

The speaker observes the formation of higher highs on the ES chart and notes that NASDAQ has supported this upward movement.

Formation of Higher Highs

• The ES chart shows higher highs, indicating bullish momentum.

• NASDAQ's performance supports this upward movement.

New Section

The speaker comments on volume balance and its significance in the futures market.

Volume Balance in Futures Market

• Volume balance is observed on both US 500 and NASDAQ charts.

• The speaker notes that volume balance may not be as respected or precise in CFD trading compared to futures market trading.

New Section

The speaker highlights the importance of tracking US markets' data even if one cannot directly trade US futures contracts.

Tracking US Markets' Data

• Even if unable to trade US futures contracts, it is beneficial to track US markets' data when trading CFDs like US 500, US 100, and US 30.

• Futures market data provides more reliable information for analysis.

New Section

The speaker removes a previous annotation from their chart.

Removing Annotation

• The speaker removes a previous annotation from their chart.

New Section

The speaker mentions watching the Super Bowl game and continues discussing potential price levels to watch.

Watching Price Levels

• The speaker mentions watching for the price level of 41-18 and whether there will be a move through it or a touch followed by a move to 41-18.

• They express interest in seeing price action around certain levels before considering further moves.

New Section

The speaker discusses their preference for certain candlestick patterns and support levels.

Candlestick Patterns and Support Levels

• The speaker prefers to see specific candlestick patterns, such as open candles, before considering further moves.

• They mention specific support levels they are monitoring.

New Section

The speaker explains why they would not want to see certain price movements at this point.

Avoiding Certain Price Movements

• The speaker does not want to see certain price movements because they consider them as bearish signals.

• They explain their preference for specific candlestick patterns.

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The speaker discusses their desired price action and objectives if certain conditions are met.

Desired Price Action and Objectives

• The speaker wants to see specific price action before setting objectives.

• They mention potential targets if certain conditions are met.

New Section

The speaker highlights an important level on the ES chart.

Noting an Important Level

• A specific level, 4133.75, is noted as an important high-end level on the ES chart.

• This level is associated with a 15-minute fair value gap.

New Section

The speaker emphasizes the importance of noting specific levels and understanding their potential reach.

Noting Specific Levels

• The speaker advises noting specific levels on the chart to understand their potential reach.

• They mention a 15-minute candle from February 9, 2023, as an example.

New Section

The speaker points out a specific area on the chart that may be overlooked if not zoomed out enough.

Zooming Out for Better Perspective

• The speaker suggests zooming out on the chart to appreciate certain levels and their likely reach.

• They emphasize the importance of seeing the bigger picture.

New Section

The speaker mentions transitioning to a 15-minute timeframe for analysis.

Transitioning to a 15-Minute Timeframe

• The speaker plans to switch to a 15-minute timeframe for further analysis.

• This change in timeframe allows for more detailed examination of price levels.

New Section

The speaker discusses setting up gradient levels and objectives.

Setting Up Gradient Levels

• The speaker explains how to set up gradient levels on the chart.

• They mention specific price levels they are monitoring.

New Section

The speaker discusses potential objectives if there is a significant upward move.

Objectives for Significant Upward Move

• If there is a blow-off move to the upside, the speaker mentions higher objectives they would consider.

• They highlight one particular high-end level as an objective.

New Section

The speaker mentions scaling back their trading activity on the US 500.

Scaling Back Trading Activity

• The speaker indicates that they are already scaling back their trading activity on the US 500.

• They acknowledge the difficulty of annotating while focusing on trading.

New Section

The speaker concludes by mentioning those who are following along with their analysis.

Conclusion

• The speaker acknowledges those who are following along with their analysis.

• They express gratitude for viewers engaging in similar analysis.

New Section

The speaker asks for confirmation on the audio quality and requests a tweet if everything is coming through audibly.

Confirmation of Audio Quality

• The speaker asks if the audio is clear and requests a shout back on Twitter to confirm.

• They ask for a "five by five" tweet to indicate that everything is good.

• Appreciation is expressed for any feedback received.

New Section

The speaker discusses the Falcon Point and explains how to use wicks for measurements of range in targeting. They mention standard deviations and their interest in hitting Costco encroachment.

Using Wicks for Measurements

• The speaker refers to an old inefficiency on the 15-minute timeframe on February 9th.

• They explain how to drop a Fib from the low up to the high of the wick for range measurement.

• Standard deviations are mentioned, including negative two at 41.26.25 and negative three at 41.34.5.

• The speaker expresses interest in hitting Costco encroachment as a satisfying outcome.

New Section

The speaker analyzes price support levels and mentions observing specific chart movements when certain levels are reached.

Price Support Analysis

• The speaker looks at the run from 9:50 onwards and identifies an order block between 9:50 and 10:10 as a target area.

• Specific price support levels are mentioned, such as reaching into 4181.5 and observing the low end of the 50-minute fair value.

• They advise taking screenshots when specific levels are hit for further analysis.

New Section

The speaker emphasizes the importance of tape reading, observation, and patience in trading. They discuss the concept of low resistance and contrasting market conditions.

Tape Reading and Observation

• The speaker highlights the importance of managing and developing patience when tape reading.

• They emphasize that their goal is to point out where the market is likely to go based on observations.

• The speaker acknowledges that the current price action may appear ugly but can still be traded.

• They mention that cleaner charts will make setups more precise and easier to identify.

• Contrasting market conditions are discussed, with reference to low-risk high probability setups in easier market conditions.

New Section

The speaker addresses misconceptions about their teaching approach and emphasizes the focus on helping traders read price action. They discuss the importance of understanding individual daily ranges.

Teaching Approach and Price Action

• The speaker clarifies that their purpose is not to provide signals or spoon-feed trading decisions.

• They reiterate that the goal is to teach traders how to read price action and recognize setups.

• Understanding individual daily ranges is emphasized as crucial for recognizing low resistance setups.

• The challenges of communicating visual signatures in a group setting are mentioned.

Due to limitations in available content, this summary may not capture all aspects of the transcript accurately.

New Section

The speaker discusses the precision and potential outcomes of the market on a particular day, highlighting the importance of tomorrow's event. They mention the concept of engineering liquidity and how it can affect price movements.

Precision Skewed Due to Upcoming Event

• The market is currently a quarter of a point one tick outside the fair value gap, which is permissible and reusable.

• The precision may be slightly skewed because tomorrow's event is considered the real event that everyone is waiting for.

• On days like this, where there is anticipation for a significant event, the market may deviate slightly from expected patterns.

Engineering Liquidity and Resistance Levels

• The speaker observes relative equal highs in the market, which they interpret as engineering liquidity.

• They suggest that if the short-term low is taken out, it could lead to a drop in prices and reinforce the idea of resistance or a top level.

• Balancing price ranges indicate reaccumulation of new long positions.

• It is advised not to trail stop losses up due to uncertainty regarding when fair value gaps will form.

New Section

The speaker discusses potential price levels and objectives for the morning session. They emphasize using standard deviations rather than classical Fibonacci ratios for better accuracy in predicting price movements.

Price Objectives Based on Standard Deviations

• If the market trades above relative equal highs, there is a standard deviation of negative 0.5 before reaching consequent encroachment levels at 41 27.50 and 4129.75.

• The midpoint of the 15-minute gap on February 9th becomes an objective for the morning session.

• While higher levels are possible, it is not something to actively look for during this session.

Using Standard Deviations over Classical Ratios

• The speaker suggests using standard deviations and liquidity to determine price targets rather than classical Fibonacci ratios.

• They explain that understanding the narrative of price movement and liquidity is more effective in predicting market behavior.

New Section

The speaker discusses buy-side liquidity pools and the importance of annotating charts for clarity. They mention the significance of short-term lows and stop losses.

Buy-Side Liquidity Pools

• Relative equal highs in the market are seen as buy-side liquidity pools.

• Taking out a short-term low triggers stop losses for those who are short, contributing to buy-side liquidity.

Annotating Charts for Clarity

• The speaker uses lines and regular annotations strategically to avoid confusion when teaching or analyzing charts.

• Having too many elements on a chart can distract from reading price action accurately.

New Section

The speaker discusses potential price movements based on taking out a short-term low. They emphasize the importance of institutional activity in shaping market dynamics.

Potential Price Movements

• If the short-term low is taken out, there is a possibility of dipping down inside a specific range.

• Institutional activity plays a significant role in determining market direction and dynamics.

This summary covers selected portions of the transcript.

Retail Shorting Opportunities

In this section, the speaker discusses potential shorting opportunities in the retail market and how to identify them.

Identifying Market Structure Shifts

• A break in market structure occurs when there is a shift in price action.

• Look for periods where there is an "arm wrestling match" between different categories of traders.

• If prices drop below a short-term low after a double top resistance pattern, it can be seen as a market structure shift.

Institutional Order Flow Entry Drill

• When prices don't reach the midpoint of a fair value gap, it is viewed as institutional order flow entry drill.

• This indicates that there may be bullish sentiment and an expectation of higher prices.

• It's important to see if the level of imbalance stays open to confirm bullishness.

Cautionary Note on Trading Conditions

• The speaker advises caution when trading ahead of high impact news events like non-farm payroll and CPI numbers.

• Price action can become choppy and frustrating before reaching target objectives.

• High resistance conditions make it difficult for clean price runs.

Delivery in High Resistance Liquidity Runs

This section focuses on trading conditions characterized by high resistance liquidity runs and their impact on trading outcomes.

Characteristics of High Resistance Liquidity Runs

• High resistance liquidity runs are frustrating trading conditions that resist clean price runs.

• These conditions often occur before high impact news events like CPI numbers or non-farm payroll data releases.

• Price tends to move quickly, chop around, and delay reaching target objectives.

Enduring Trading Conditions with High Resistance

• Traders should exercise caution when forcing trades in high resistance conditions.

• It's important to understand that high resistance doesn't refer to support and resistance levels but rather resistant price movements.

• Traders should aim for speed-efficient runs with big ranges to achieve desired trading outcomes.

Conclusion

The transcript discusses potential shorting opportunities in the retail market and how to identify them. It also highlights the challenges of trading in high resistance liquidity runs and advises caution during such conditions. Traders should be mindful of market structure shifts, institutional order flow entry drills, and the impact of high resistance on trading outcomes.

New Section

In this section, the speaker discusses the importance of enduring through trading sessions and not constantly monitoring every minute of market activity. They emphasize the frustration that can arise from closely watching charts and provide contrasting examples of high liquidity runs and slow-moving markets.

Enduring Through Trading Sessions

• It is important to endure through entire trading sessions without constantly monitoring every minute.

• Sitting in front of the chart and watching every candle can be frustrating.

• Targets may still be hit even if you are not actively watching the market.

Contrasting Market Conditions

• The speaker takes new students into the charts to show them different market conditions.

• They highlight a high resistance liquidity run condition as an example of what to expect and endure.

• Slow-moving markets with small ranges before breaking out can be frustrating.

• Immediate gratification is experienced in conditions where there is a quick move in one direction with low resistance liquidity runs.

New Section

In this section, the speaker explains how immediate gratification is not common in slow-moving markets. They discuss the satisfaction of being on the right side of the marketplace during low resistance liquidity runs. The importance of observing timeframes and potential failures is also emphasized.

Immediate Gratification vs Slow-Moving Markets

• Immediate gratification is not common in slow-moving markets with consolidation.

• Being on the right side of low resistance liquidity runs can be satisfying.

• Observing timeframes and potential failures is crucial for learning and recording in a trading journal.

New Section

In this section, the speaker highlights challenges faced when trading in environments with low resistance liquidity runs. They contrast it with easier days where trades are more predictable. The mental and emotional toll of working hard for profits in such environments is discussed.

Challenges in Low Resistance Liquidity Runs

• Trading in low resistance liquidity runs presents different challenges compared to one-sided markets.

• High probability conditions are easier to trade as they offer solid days with easy trading opportunities.

• In slow-moving markets, traders have to work harder for profits and may feel drained at the end of the day.

New Section

In this section, the speaker discusses the mental and emotional toll of trading in slow-moving markets. They emphasize the need for self-reflection and improvement as a trader. Weaknesses are not seen as negative traits but areas that require development.

Self-Reflection and Improvement

• Slow-moving markets reveal a trader's true self, including strengths and weaknesses.

• Traders need to refine their imperfections and prevent them from affecting their trades.

• Weaknesses should be viewed as areas for improvement rather than making someone a bad trader.

• Developing coping skills and understanding individual personalities are essential for success.

New Section

In this section, the speaker emphasizes the importance of recognizing weaknesses and developing coping skills. They discuss how certain traits that may be endearing in personal relationships can negatively impact trading. The need to refine oneself as a trader is highlighted.

Recognizing Weaknesses and Developing Coping Skills

• Traits that may be viewed positively in personal relationships can hinder success in trading.

• Recognizing weaknesses is crucial for developing coping skills.

• Refining oneself as a trader requires addressing character flaws that can negatively impact trades.

New Section

In this section, the speaker shares their own experience with overcoming fear when entering trades. They mention using trusted indicators or charts to gain confidence before executing trades.

Overcoming Fear When Entering Trades

• The speaker personally experienced fear when entering trades and needed to gain confidence.

• Using trusted indicators or charts can help overcome the fear of entering trades.

• Comparing the US 500 chart with the ES Futures Market can provide additional confidence.

New Section

This section does not contain any significant content related to trading.

Understanding Frustrations in Trading Environments

The speaker discusses the frustrations that can arise when trading in certain environments and highlights the importance of recognizing patterns and characteristics in price movements.

Recognizing Frustrating Market Behavior

• In certain trading environments, it can be frustrating to see the market move in ways that seem unpredictable or counterintuitive.

• The speaker gives an example of searching for a specific price level and experiencing frustration when it does not immediately appear.

• It is important to understand the difference between bid and ask prices and how they can affect trading decisions.

Recording Frustrations for Analysis

• When encountering frustrating market behavior, it can be helpful to take screenshots or annotate charts to document the time spent watching price movements.

• This documentation allows traders to analyze their experiences and identify patterns or levels of support and resistance.

Characteristics of Price Movements

• The speaker emphasizes the importance of understanding classic characteristics that price movements should exhibit.

• Examples include delivering in price, coming down to key levels, and displaying resistance or support abilities.

Precision Elements in Trading

• The speaker explains that even though there may be choppiness or deviations from expected patterns, precision elements still exist within market movements.

• Traders should expect occasional deviations but remain focused on identifying key levels and patterns.

Analyzing Price Movements at Key Levels

The speaker discusses analyzing price movements at key levels and highlights the significance of observing specific behaviors at these levels.

Observing Down Closes at Key Levels

• Traders should pay attention to down closes near key levels as they indicate potential resistance or support abilities.

• Annotating these observations on charts helps track how price interacts with these levels over time.

Choppiness Between Key Levels

• The speaker acknowledges that there can be choppiness and deviations between key levels.

• Traders should expect occasional movements that color outside the lines, but this does not invalidate the overall analysis.

Overshooting Fair Value Gap

• The speaker uses an analogy of mowing a lawn to explain how price movements can overshoot fair value gaps.

• This overshooting ensures there are no seams or inconsistencies in the market structure.

Building Trust in Trading Decisions

The speaker discusses building trust in trading decisions and addresses common concerns about stop losses and trade execution.

Overcoming Fear of Failure

• Traders often question how to trust their trading decisions and avoid getting stopped out or experiencing losses.

• The speaker emphasizes that experience and walking through live trades will help build trust over time.

Developing Discipline and Patience

• Traders should follow instructions from experienced traders, such as knowing when to stop trading for the day.

• Closing charts and taking breaks helps develop discipline, patience, and overcome fear of missing out on potential trades.

Setting Objectives for ES Trading

The speaker discusses setting objectives for ES (E-mini S&P 500) trading based on fair value gaps and specific price levels.

Consequent Encroachment of Fair Value Gap

• On February 9th, the next objective for ES would be reaching 4131 even after consequent encroachment of the fair value gap on the 50-minute timeframe.

Knowing When to Close Trades

• Reaching the set objective would signal closing trades for the morning session.

• Traders should not feel obligated to continue trading throughout the day if their objectives have been met.

Balancing Trading and Personal Time

The speaker emphasizes the importance of balancing trading time with personal time and avoiding excessive screen time.

Taking Time Away from Charts

• Traders should not feel pressured to constantly monitor the charts or trade throughout the entire day.

• It is important to take breaks, relax, and enjoy personal activities away from trading.

Developing Discipline and Overcoming FOMO

• Following instructions to stop trading when advised helps develop discipline and overcome the fear of missing out on potential trades.

• Trusting in the repeatable nature of market patterns allows traders to confidently step away from the charts.

By following these guidelines, traders can better understand frustrating market behavior, analyze price movements at key levels, build trust in their decisions, set objectives for trading sessions, and maintain a healthy work-life balance.

Pre-Market Analysis and Opening

In this section, the speaker discusses their pre-market analysis and expectations for the market opening.

Expectations for Market Opening

• The speaker expected a higher opening but wanted to see the market trade back down towards Friday's closing price.

• They were looking for the market to reach a level around 4099.50.

• However, instead of trading down, the market took a run above a short-term high and continued to rise.

Teaching Moments and Trading Strategies

The speaker discusses teaching moments during live trading and emphasizes the importance of observing and learning from their strategies.

Observing Teaching Moments

• The speaker advises traders to observe their strategies as if they were conducting laboratory experiments.

• Traders should focus on understanding how they feel during different market conditions without worrying about being right or wrong.

• By watching the speaker trade without a safety net, traders can learn that these concepts work effectively.

Dealing with Uncertainty in the Market

The speaker talks about dealing with uncertainty in the market and encourages traders to embrace moments when they don't know what the market will do.

Embracing Uncertainty

• It is okay not to know what the market will do because waiting for it to reveal its intentions can still lead to profitable opportunities.

• Traders need to endure more pausing, retracements, stagnation, and price action before reaching their desired levels.

• Traders should focus on annotating charts or journals with observations rather than expressing frustration or stress.

Treating Trading as a Business

The speaker highlights the importance of treating trading as a business and compares it to managing a Domino's Pizza branch.

Running Trading as a Business

• Traders should treat trading like running a business, with key performance indicators (KPIs) and models to guide decision-making.

• Just as in managing a pizza branch, traders need to adjust their costs and resources based on market conditions.

• Traders should record their observations in journals, acknowledging that they are borrowing the speaker's experience rather than claiming they anticipated everything.

Personal Key Performance Indicators (KPIs)

The speaker discusses the importance of developing personal KPIs for trading success.

Developing Personal KPIs

• Traders need to establish their own KPIs to measure their trading performance.

• By understanding their own fluctuations and boundaries, traders can make informed decisions about adjusting strategies or taking breaks.

• Google can provide more information on how to develop personal KPIs for trading.

The transcript provided does not include any timestamps beyond 1:10:34.

Market Efficiency and Mental Capital

In this section, the speaker discusses the importance of using tools to market efficiency and minimize mental capital spent on worrying over charts. By following a structured approach, mental capital can be conserved.

Marketing Efficiency and Mental Capital

• Using tools to market efficiency helps reduce the amount of time and mental energy spent on analyzing charts.

• Having someone with experience outline what the market should do provides confidence and reduces worry.

• Confidence is boosted when watching live charts and receiving guidance from an experienced individual.

• Recording annotations in a journal helps filter out negativity and criticism, allowing for more focused analysis.

• Avoiding public opinions or distractions from others' views can help maintain clarity in decision-making.

Importance of Recording Annotations

This section emphasizes the significance of recording annotations in your trading journal. It explains how these annotations serve as a reference point for learning and self-reflection.

Recording Annotations

• Annotations in your chart should be specific, concise, and aligned with your expectations.

• While learning tape reading techniques, it's common to miss certain details due to distractions or concerns about trades.

• Filtering out external opinions or doubts allows for better focus on personal observations during tape reading sessions.

• The purpose of recording annotations is not to share them with others but rather to reinforce positive self-talk.

• Positive self-talk involves giving yourself suggestions that enhance confidence and reinforce learning.

Harnessing the Power of Positive Self-Talk

This section highlights the power of positive self-talk in enhancing trading skills. It explains how visual representations of price action combined with positive affirmations can reprogram one's thinking process.

Power of Positive Self-Talk

• Visual representations of price action activate the subconscious mind and improve retention of information.

• By recording annotations with positive self-talk, you create a visual representation that reinforces learning.

• Revisiting your journal at the end of the week and listening to your own voice reading out loud helps internalize the concepts.

• Over time, your own voice will replace external guidance, leading to independent thinking and decision-making.

• Avoid criticizing yourself audibly during trading as it can negatively impact your subconscious mind.

Embracing Independent Thinking

This section emphasizes the importance of independent thinking in trading. It encourages traders to avoid robotic behavior and instead develop their own analytical skills.

Embracing Independent Thinking

• The goal is to develop independent thinking rather than relying solely on external guidance.

• Positive self-talk and avoiding harmful criticism contribute to building confidence and resilience.

• Past negative experiences should be acknowledged but not dwelled upon; focus on personal growth and progress.

• Replace negative memories with positive self-talk to reinforce a mindset of resilience and determination.

Timestamps are approximate and may vary slightly.

The Importance of Self-Validation

In this section, the speaker emphasizes the importance of focusing on one's own progress and not seeking validation from others. They discourage inviting criticism from individuals who may not have any trading experience.

Seeking Validation and Avoiding Criticism

• Seeking validation from others, such as counting likes or hearts on social media posts, should not be the baseline for success in trading.

• Inviting criticism from individuals who do not have trading experience can hinder progress and create unnecessary difficulties.

• Live streamers may feel threatened by others' success and may criticize to make themselves feel superior.

• It is important to focus on personal growth and avoid external criticisms when learning to trade.

• Opening up a dialogue with other traders or seeking trading partners can lead to unnecessary challenges and distractions.

Managing a Divided Mindset

The speaker discusses the importance of managing a divided mindset while trading. They highlight how personal matters can affect decision-making and suggest prioritizing important tasks over trading when necessary.

Balancing Personal Life and Trading

• A divided mindset, where personal matters occupy thoughts during trading, can negatively impact decision-making.

• Personal issues like relationship problems, work-related stress, or family responsibilities can distract traders from focusing on their trades.

• Prioritizing important tasks in personal life over trading is crucial for maintaining focus and avoiding guilt or regret later on.

• Traders need to constantly manage their emotions and thoughts while making decisions in order to achieve success.

Recognizing Priorities in Trading

The speaker shares their personal example of balancing priorities between trading and personal life. They encourage traders to evaluate their own situations and make decisions based on what is most important at a given time.

Evaluating Priorities

• The speaker shares their personal example of having multiple important events on the same day, such as an anniversary and a child's birthday.

• Traders should assess their own situations and determine what is most important to them at any given time.

• It is acceptable to prioritize personal matters over trading when necessary, as neglecting important tasks can lead to distractions and guilt.

• Recognizing and managing priorities is essential for maintaining focus and achieving success in both trading and personal life.

Confidence in Trading Decisions

The speaker emphasizes the importance of having confidence in trading decisions. They highlight that understanding price movements and having a clear strategy can lead to a sense of certainty, regardless of market outcomes.

Having Confidence in Trading

• When traders have a deep understanding of price movements and know why prices are likely to move in certain ways, they can trade with confidence.

• Being confident means not being affected by short-term market fluctuations or worrying about missed opportunities.

• A clear strategy based on logical analysis allows traders to make informed decisions without being swayed by emotions or external factors.

• Confidence comes from knowing that one's trading decisions are based on sound principles that have been proven effective over time.

Timestamps may vary slightly depending on the source video.

The Importance of Earning Your Trades

In this section, the speaker emphasizes the importance of earning your trades and not relying on someone else's signals. They discuss how even though copying trades may be profitable, it doesn't give the same sense of accomplishment as trading on your own.

Earning Trades vs Copying Signals

• Trading someone else's signals means you didn't earn the results yourself.

• While it may be profitable, deep down you know you did nothing to achieve those results except copycatting.

• There is a sense of dissatisfaction in relying on others' signals without putting in the effort to learn and trade independently.

Understanding Personal Limitations

The speaker acknowledges that not everyone is equipped to become successful traders. They mention that while they personally couldn't live with copying signals, they understand that some individuals have limitations and need alternative methods.

Personal Limitations in Trading

• Not everyone is cut out for trading; some personalities are simply not suited for it.

• Acknowledging personal limitations is important; there's no shame in using alternative methods like copying signals if necessary.

• The speaker mentions that they have mentored many people over the years and have observed that not everyone will be able to trade successfully.

Transitioning from Live Sessions

The speaker discusses their upcoming decision to stop doing live sessions and how it might affect their audience. They assure listeners that there will still be opportunities to learn from other traders who can provide similar services.

Transitioning from Live Sessions

• When the live sessions end, it may feel challenging for some listeners who relied on them as a crutch or training wheel.

• The speaker assures listeners that there will be other traders who have learned from them and can offer similar services.

• These traders will run their own signal services and provide the same insights and strategies.

Students Offering Signal Services

The speaker mentions that some of their students are capable of offering signal services. They explain that these students have been trained by them and can provide mentorship to others.

Students Offering Signal Services

• Some of the speaker's students are capable of providing signal services.

• These students have been trained by the speaker and can offer mentorship for a month, showing others how to trade successfully.

• The speaker emphasizes that these students need to demonstrate their skills by consistently showing profitable trades for a full month.

Fair Assessment for Signal Providers

The speaker discusses what they believe is a fair assessment for signal providers. They emphasize the importance of transparency and consistency in providing signals.

Fair Assessment for Signal Providers

• A fair assessment for signal providers is to walk it forward, showing live results and price action analysis every day for a full month.

• Transparency is crucial; signal providers should let others see what they see in price action.

• It's important to avoid spending time with unreliable individuals who claim to be trained by the speaker but lack evidence or consistent results.

Personal Observations and Regrets

The speaker shares personal observations about themselves as a mentor and expresses regret about going public with their teachings. They emphasize the importance of finding one's own way in trading.

Personal Observations and Regrets

• Sharing personal observations goes against the speaker's nature, as they prefer keeping their chart analysis guarded.

• Going public with teachings has made them uncomfortable, even though they understand that many people need their guidance.

• The speaker expresses regret about going against their promise of not sharing personal observations and teachings publicly.

Last Year of Public Mentoring

The speaker announces that this will be their last year of public mentoring. They express a desire to return to a more private life and emphasize the importance of following their guidance.

Last Year of Public Mentoring

• This will be the speaker's final year of public mentoring; they do not plan on offering private mentorships for sale.

• The speaker wants to go back to being themselves and live a more private life.

• Listeners are encouraged to seize the opportunity, follow the provided guidance, and avoid making mistakes that have been advised against.

The transcript is in English, so the response is also in English.

Finding a Place for Training

The speaker discusses the importance of persistently working on training, even if you can't see immediate results. They emphasize that there may be a place for it in your training later on.

Discovering Opportunities

• Sometimes, you may not find a place for certain aspects of your training right away.

• However, with continued effort and grinding, you might later discover that there is indeed a place for it.

• It's important to keep pushing forward and not give up easily.

Exploring Options

The speaker briefly mentions exploring different options and refers to a 15-minute telephone call.

Considering Alternatives

• The speaker suggests considering alternatives or exploring different options.

• They mention a 15-minute telephone call as an example, but do not provide further details.

Closing Trades

The speaker mentions their intention to close something related to "us 500" soon and expresses curiosity about the outcome.

Closing Trades Decision

• The speaker states that they will no longer use anything related to "us 500."

• They express their intention to close this particular trade soon.

• They are curious about the potential outcome before making any decisions.

Analyzing Current Situation

The speaker comments on the current situation and indicates progress made so far.

Assessing the Situation

• The speaker acknowledges progress made in relation to the current situation.

• It is unclear what specific situation they are referring to.

Identifying Premium Areas

The speaker identifies a specific area as the next premium area and provides price levels.

Premium Trading Area

• The speaker points out that the next area of interest for premium trading is between prices 41,43 and 41,44.5.

• They suggest focusing on this range for potential trading opportunities.

• Beyond this range, they mention that the market is balanced with no significant inefficiencies.

Lack of Interest in Other Areas

The speaker highlights that there is nothing else of interest until a certain point and advises focusing on specific areas.

Lack of Trading Opportunities

• Apart from the previously mentioned premium trading area, there are no other areas worth considering for trading.

• The speaker advises traders to focus solely on the identified range for the rest of the day.

• They mention that if certain conditions are not met by the afternoon session, it may be best to draw conclusions and adjust strategies accordingly.

Afternoon Session Objective

The speaker discusses their objective for the afternoon session and offers advice on how to approach it.

Afternoon Trading Objective

• The speaker shares their personal objective for the afternoon session as being focused on a specific time frame.

• They suggest treating it as an objective but acknowledge that individual traders may have different approaches.

• Traders are encouraged to annotate charts and analyze whether there are any reasons for price drops within that timeframe.

Inefficiency Analysis

The speaker emphasizes analyzing inefficiencies in relation to price movements.

Analyzing Inefficiencies

• The speaker mentions that beyond a certain point, there is no need to view anything else as inefficient due to back-and-forth price movements.

• Traders should focus on identifying inefficiencies within specific ranges rather than searching for them throughout the entire market.

Conclusion and Future Plans

The speaker concludes the session, apologizes for any delays, and mentions future plans.

Final Remarks and Future Plans

• The speaker hopes that participants found something useful from the morning session.

• They apologize for any punctuality issues and express their intention to be more punctual in future sessions.

• The next session is planned for tomorrow morning, possibly at 9 o'clock.

• The speaker mentions personal commitments with family that may affect the timing of future sessions.