ICT Mentorship Core Content - Month 05 - Quarterly Shifts & IPDA Data Ranges

okay folks welcome to the January 2017 ICT mentorship long-term analysis Lesson 1.1 we're teaching implementing macro analysis and this teaching is quarterly shifts and epta data ranges the quarterly Market shift okay if there is an algorithm if our belief is that there is a automated price delivery engine that takes care of providing efficiency in the delivery of price the efficiency of trading at every potential trading price available per asset we're going to be dealing specifically with Forex for this teaching but the effect of a quarterly Market shift is in Universal and all asset classes but

I want to ask you a question just for a moment try to imagine the world as investing if it were all completely random if the market in fact was random how could anyone reasonably have an edge think about it statistics really what is it you're still counting the odds of something that's already happening and attributing that to some future unseen event so there's no guarantee that just if the markets were completely random if we had based our system if our analysis concepts are based on the the effects of Randomness in the marketplace we're left with

the conclusion that yes things may have happened 50 times as their last 60 times and therefore an edge could be a defined but that does not equate to Future events that have not been seen yet that's the falsehood of teaching the idea that the markets are completely random if the markets were in fact completely random I myself would never have an interest in them because I would have new trust in the fact that there was any measure of prognostication that would fulfill a profitable condition as an outcome my belief is that the markets are 100

percent engineered they're absolutely controlled to the very pip in the Foreign Exchange Market I've proven many times in the past over many years how we can call specific price levels to the PIP sometimes it varies a little bit many times going right to the PIP as an exit or a Target and my opinion about that is if I can do that multiple times throughout the year that in itself regardless of what I believe I'm going to be able to communicate to you from my understanding about the marketplace if I could do that to me that

proves that there is in fact zero Randomness to the marketplace because if it was Randomness I could not be that precise about my forecasts and where I believe the market was going to go going to go if we understand and can agree that the markets do in fact have a element of control and this is in the form of a price engine algorithm at the Central Bank level they set the price they allow the markets to move to a predefined range for the day for the most part are sometimes that things may occur that they

send the price outside of the predetermined range but for the most part the interbank price delivery algorithm or epta has data ranges that it works Within and by understanding what those ranges are we can go into the marketplace with a pre determined idea where the algorithm will do its work where is it pulling the information from what dates what ranges and what specific highs and lows is the algorithm reaching to as a reference point that's what this teaching is going to talk about specifically today I want to remind you and I've talked just briefly about

this in the free tutorial section as I was going through all of the teachings that I provided for the online community as it trades the Foreign Exchange Market I teach it there is a market structure shift that takes place every three to four months and for the most part that's Universal doesn't apply just to the Foreign Exchange Market but it does apply to all asset classes this effect takes place because the market has to generate new interest it has to have a new sense of urgency a missed opportunity is a lost opportunity in many people's

eyes as a Trader so the markets have a tendency to move around and gyrate around every three to four months what was true or what was seen as a directional movement in the marketplace over the last two or three months may not in fact be true for the next coming two to three or four months in Market Direction so I'm going to counsel you to always look at price on a macro level it means a monthly weekly and daily time frame and learn to anticipate intermediate price swings it doesn't matter if the market is predisposed

to go up on a primary bullish Market or a primary down Market you can still fare it out rather significant intermediate term retracements in either strong uptrends or down trends if you understand this component you'll also be able to weather the Deep retracement sometimes in long-term position trading that is required you'll also understand that by understanding that there's intermediate term retracements on these higher time frame levels and if you're a long-term position Trader as this month is aimed at teaching you also have no problem and no emotional commitment to not holding the position forever but

in fact taking some of the position off waiting for that retracement and then going back in adding that same position you just took off or a portion of that position off your long-term position trade and then adding it back in to recapitalize on that further movement higher every three to four months there's going to be a change in Direction it may cause a consolidation or it may cause a retracement of whatever price swing has been unfolding up to that moment the fact that the market is in a primary uptrend or a downtrend that's going to

be the whether or not the market has a deep retracement on a hard time frame basis or if it goes into consolidation if the Market's in a strong uptrend many times you won't see much of a retracement but you will see consolidation or trading range form and they'll capitalize new long positions that way and then sometimes they'll take the market below a short-term low on a daily chart and then send it higher after that that would be the extent of any kind of retracement but either way I want you to look at the marketplace there's

always some intermediate term play to trade on every three to four months on every asset class if the market you're looking at or studying is in a significant range-bound environment and look at a market that is potentially moving up to a new uptrend or downtrend stage in its price action by doing so it will also get you in line with potential long-term trends moving higher or lower respectively to what you would be seeing in your charts we're going to talk a lot about that this month but let's get into a little bit more nuts and

bolts about how we can use if the data ranges and the quarterly Market shift obviously my view on the marketplace is if we can focus in on what the smart money is doing with their money how are they allocating funds how are they moving into the marketplace if we can mimic those characteristics in our own trading uh hopefully the outcome should be we have high probability conditions when we look at smart money accumulation for buy programs the buy program is when the market goes through a series of successive days sessions that are consecutive regardless of

what time frame it is you can see a buy program on a hourly chart you can see a buy program on a four hour chart you see a buy program on a daily and or weekly or monthly but the trading time frame that we're using for this month is primarily the daily chart so if we're going to be anticipating a buy program that means we're going to be expecting a series of updates and it could last as long as several months it doesn't have to be a few days but a few days up on the

daily chart can still be considered a buy program if it's reaching for a measure of liquidity that would be above the recent Market highs when we're looking for smart money accumulation for buy programs what we're essentially expecting is manipulation in the underlying versus The Benchmark now what is the underlying and what is the benchmark what we're going to be looking at again specifically dealing with the Foreign Exchange Market for this teaching but we will be talking about Commodities we will be talking about stocks and we'll be talking about interest rate markets as well in the

same venue that we're teaching here but I want to keep the topics very concise about one asset class at a time to avoid any kind of confusion on you as a as a student but the manipulation of the underlying the underlying is what you're actually trading and The Benchmark is what you're measuring the potential manipulation or lack thereof for smart money accumulation for a buy program on a daily chart The Benchmark is going to sometimes make a lower low while the underlying makes a higher low this would indicate the strong buying pressure under the underlying

issue or in this case the currency that you're Trading it's failing to make a lower low whereas The Benchmark would be making a lower low it's showing relative strength so therefore you would expect a measure of upside movement it's another scenario where smart money accumulation for buy programs would come in the way is the underlying or the currency that you're trading makes a lower low while The Benchmark makes a lower high and this is for inverse correlated benchmarks to currency and I'll give you an example for the point number two where it says Benchmark makes

lower low underlying makes higher low in this case that statement could be true by saying the dollar Index makes a lower low while the dollar again makes a higher low that would be an accumulation by program the underlying or currency that you're Trading makes a lower low but the Benchmark makes a lower high in this case this would be true in the sense that if we were looking at say The British pound USD makes a lower low while the dollar Index makes a lower high what that would indicate is while the dollar was failing to

make a higher high in respect to making a lower low in the British pound versus the US dollar it's indicating that the pound is actually going under an old low to scoop up sell side liquidity so therefore we would anticipate a turtle soup scenario on a daily chart Benchmark makes higher high underlying makes higher low in this case it's stating in a condition that would be the dollar making a higher high which would look like relative strength for the dollar but the underlying or in this case we'll use the pound dollar makes a higher low

that pound dollar should have made a lower low but it was unwilling to make that lower low so therefore the relative strength is in the buy side on pound versus dollar and the dollar is actually going above an old High to take the buy stops above and on high and then reject we would look for a turtle soup cell in the daily in that condition for smart money distribution for cell programs we'll look at the four conditions we use for that again the manipulation in the underlying versus The Benchmark is what we're studying this is

all relative to the Daily time frame only nothing less than a daily chart The Benchmark makes a higher high while the underlying makes a lower high in this case that would be the dollar making a higher high while the underlying or in this case it would be the dollar yen makes a lower high that would be a cell program we're showing heavy distribution in the dollar Yen pair underlying makes a higher high while The Benchmark makes a higher low this could be true in the sense that the pound dollar makes a higher high while the

dollar Index makes a higher low in this case what it's implying is for instance if the underlying is the pound dollar and it makes a higher high it's reaching above an old high to get the buy side liquidity for a turtle soup cell and the dollar Index is actually failing to make a lower low so the underlying strength is in the dollar Index lastly for a sell program on the daily chart The Benchmark makes a lower low while the underlying makes a lower high in this case it would be the dollar Index makes a lower

low while the pound dollar makes a lower high the dollar Index making a lower low while the pound making a lower high the pound dollar while making a lower high showing relative weakness while The Benchmark dollar Index makes that lower low it would look like the dollar Index is breaking lower so therefore support broken is going to see continuation go lower but in fact what's actually happening is the dollar Index would be breaking the previous low to accumulate all the cell stops below an old low while the pound dollar was unwilling to make a higher

high because it's already booked enough shorts and it's heavily under distribution we will be seeing heavy selling in the pound dollar based on the relative weakness because it was failing to make a higher high while the dollar Index made a lower low all that said and it was probably a little bit confusing for you but I gave you some Replacements but the rules are as they were explained just a moment ago on the previous slide but you can see everything set here we'll go through it briefly smart money accumulation for buy programs we're specializing in

the manipulation in the underlying versus The Benchmark and that's seen in this sense that the dollar Index makes a lower low while the dollar Swiss for example makes a higher low that would be bullish for the dollar Swiss euro dollar makes a lower low while the dollar Index makes a lower high that would be seen as bearishness for the dollar and the bullishness for the euro dollar because it went below an old low to scoop up the sell side liquidity and then you would see a rejection or a turtle soup long the dollar Index makes

a higher high and the euro dollar makes a higher low and that would be relative strength for the euro dollar and the move above the old high on the dollar Index would be a turtle soup cell after running the buy stock liquidity and the smart money distribution for cell programs again focusing on manipulation in the underlying versus The Benchmark the dollar Index makes a higher high at the same time the dollar Swiss would be making a lower high that would be relative weakness in the dollar Swiss pair and the dollar Index making a move of

an old high would be a run on buy stock for a dollar and then you would see rejection after that and looking for lower prices on dollar Index a dollar Index and the dollar Swiss are closely correlated and just like the dollar Swiss being close to Chloride to dollar Index so is dollar CAD when oil is not an issue and dollar yen is also closely correlated to the dollar Index positively or naturally correlated uh versus the euro dollar in the dollar Index they're inversely correlated so that means whatever the euro dollar is doing the option

seeing in the dollar Index and this third example for the cell program euro dollar makes a higher high while the dollar Index makes a higher low a relative strength in the dollar Index and underlying weakness should be expected after euro dollar takes that old high out running out to buy stock liquidity and the daily chart should see lower prices in that condition uh dollar Index makes a lower low while the euro dollar makes a lower high that's relative weakness in the euro dollar pair while the dollar Index does in fact go below that lower low

the dollar that's would be scooping up the sell side liquidity below an old low and then rejection and trading higher on the dollar Index thus pushing your dollar lower okay but we're looking at here the dollar Index is a monthly chart and what I did was outlined a full year January to January and I want you to take a look at the price swings in between all of these reference points vertically as you can see there's a couple different Market shifts that take place and this is what it looks like if you have it set

up on every four months versus the last live being every three months and I'll give you an example of seeing it again this is your chart divided up on every three months and every four months and you can still see it gives you a really good context of where the market structure is and what Market shift should take place next foreign this is that same dollar Index that's viewed on a weekly time frame and we're looking at every four months for quarterly shifts and we're going to drop down into a daily chart you can see

here we have the dollar Index daily and what I did was again I'm only using calendars starts of each month here from one January to the following years January or in the case of this example the New Year 2017 that we're now in looking at 2016's January 1st to January 1st of 2017. I want you to take a look at how many times the market shifts back and forth and how many price swings you see over the course of a full year I want a daily time frame you're not getting a great deal of setups

and unfortunately that's the reason why most people don't trade this time frame but it is a time frame that is supportive to all other disciplines of trading and I said this multiple times and I kind of belabor it here but I want you to see how the market does in fact give us a very good macro view of the marketplace where it gives us framework and structure to work within so that way we can trade on one side of the marketplace and focus primarily there all right let's deal with a little bit more detail about

what is a quarterly shift okay on your chart you're going to delineate with a vertical line on your calendar at the beginning of the year you're going to find or and if you're just now starting say you're watching this video which you shouldn't be because everyone should be watching at the same time in January 2017 as part of this mentorship but for those that are studying again watching this video and the mentorship and their access to the content you may look at your charts and it may be May okay it could be three years from

now and you could do a whole new analysis by taking a look at the chart and putting a vertical line at the beginning of the most recent past month okay for instance we're in January right now you would put it on the first day of December okay and you would do everything I'm about to explain to you here but to start it all to make it easy to explain everything I just used the January to the January Factor and we're going to be viewing that as the anticipated quarterly shift now we don't know that's going

to be true but we're going to do some things to arrive at how we can calibrate that level and this is called the look back what you're going to be doing is you're going to look back from your month of study wherever that is in time regardless of what when you start your analysis the most recent past month okay you want to be using that first trading day of that month put a vertical line on your chart and then from that point on you're going to be looking back to the left you're going to be

looking back to the left of that vertical line that you place on your chart 60 trading days 40 trading days and 20 trading days now why am I giving you those three parameters the algorithm will reach back about three trading months worth of data that's the the average where it'll reach back for now there's other times where it will go into further ranges but for now I'm just teaching you how to look for the most Salient points of reference on the daily chart the 60 the 40 and the 20 trading days left of the most

recent calendar month put your vertical line on that that's your beginning marker point and you're going to delineate what 60 days to the left of that is what 40 days to the left of that is and what 20 days and they're all trading days not calendar days you're going to basically in those ranges you're going to identify institutional order flow what was the market doing 60 days ago to now or instead of a vertical line of that most recent month that's delineated in your chart also to the left of that vertical line you place on

your chart you're going to be looking back over the 60 the 40 and the 20 past trading days to the left of that past month and you're going to look for recent institutional reference points I'm gonna look for an old price High you're gonna look at old price low why are you doing that you're looking for a potential liquidity pool that would be resting above it or if those highs have a lot of Wicks you're going to be looking for rejection blocks which would be a move above the bodies of the candles for a potential

sell-off or below an old low that has long Wicks on it you'd be looking for the bodies of the candle to house some cell side liquidity below that for a rejection block or sell stops below an old blow if there's not a whole lot of Wicks to the lows that would be defined in the last 60 to 40 to 20 trading days you'll be looking for bearish order blocks pool shoulder blocks in the last 60 days and you're going to look specifically around the last 60 around 40 in the last 20 days basically you're looking

back the last three trading months and you'll be looking for fair value gaps and any liquidity voids as well once you identify over the last 60 trading days okay you're using the previous closed calendar month as your beginning reference point again as an example right now today it's January 6th 2017. and if I were to use this method I would look at December 1st 2016. my vertical line would be on that calendar day and then I would book 60 trading days to the left of that on my chart I would look 40 trading days to

the left of that and I would look 20 trading days to the left of that December 1st or whatever the first trading day would be for December 2016. and I'll be looking for over those three months where's the high and where's the low if the market has been trading higher I'm going to frame everything off of the market low if it's been trading lower I'm going to trade frame everything off of the market High so again I'll repeat that for you you're looking back left 60 trading days at the maximum over those last 60 trading

days you're determining what was the institutional order flow over those last three months was it trading higher collectively or was it trading lower collectively as a whole sometimes you can look at it and it'll be a rather large trading range and that's okay still you'll be able to do things with that as well but for now you want to see what's more significant was there a significant intermediate term price low formed in the last 60 trading days to the left or was it a significant intermediate term high that formed whichever is true and whichever is

obvious to you then you put your vertical line on that high or that low so now you're calibrating it to the market structure that's in place right now once you do that what you're doing is you're anchoring your vertical line to a previous Market structure shift okay so let's go back to our daily chart of the dollar Index okay and this is what we had earlier in the presentation I had January 1st 2016 to January 1st 2017. okay and I'm going to do what I just explained to you if we were looking at the market

in January 1st of 2016 we're going to actually do what I explained just a moment ago and this is what we end up at we would be moving to December 2015 the first trading day there versus January 1st of 2016. so we moved to the left and we noted that high and we were using the first calendar day of the month and they're always using that reference point to calibrate and begin because again if our belief is the algorithm is systematic it's methodical it's going to work on data ranges and it's going to use calendar

dates and it has to reference how far to look back because it's a numerical reference point so now we know how we can calibrate just like the algorithm will will Define it in the sense of every three months there is a shift also in the last three months where is the liquidity at and that's essentially what we're going to be talking specifically dealing with in the next teaching with the open float but for here to get to that understanding in the next teaching I have to teach you how to calibrate your Market structure so that

way you can see where the market is most likely going to reach for so now we have our reference point on our vertical line all the way to the left the furthest most left vertical line again delineated at December 1st 2015 and now we're anchored now we're going to do the look back on that vertical line we're going to be looking at the range that was created in the last 60 trading days from that vertical line that we adjusted and anchored at December 1st 2015. over the last 60 trading days what we saw is the

market traded higher from around October 2015 so it made an interview and term low the market traded up and created that short-term or any term High at December 1st or their balance in the last 40 trading days to the left of that December 1st 2015 delineation with that vertical line we also see there was a consolidation and then expanded again once more time higher in the last 20 trading days to the left of that vertical line the market just kept pressing higher so institution order flow was bullish so where is the liquidity at it's going

to be what it's going to be below the marketplace because the market has already traded higher that's this reference point here right below that October low the market trades lower after or to the right of December 1st 2015. once the market trades lower in between this reference point once we identified where the market structure starts to break down that means a kilo was broken and that kilo is seen right here any retracement higher or movement higher at this moment we're going to be anticipating a move lower because the market has already been moving bullishly we've

seen a market structure break lower and now we're going to be anticipating a potential move lower in the dollar Index it could be a consolidation sideways but we're still expecting a measure of bearishness in the dollar Index post December 2015. the 60 to 40 and the 20 when we look back like this again we're focusing primarily on where has the market traded from what was the institutional order flow at that point and at the this time we can see clearly between the October and November into December 2015 the market had been Trading bullishly I don't

care about the long long term Trend right now all we're doing is looking at quarterly shifts and this will give you a great deal context on how you can do a lot of different trading but it'll help you frame your position trades because without understanding this you can't incorporate Trend to get yourself on the right side of the marketplace there are things that we're going to teach in the content for January that helps you get in sync with long-term trends but for the most part I want you to look at how the market shifts back

and forth both directions the markets aren't always in big long-term trends on the higher time frame charts they may be in a larger range that larger range will be trends that would look Dynamic on a hourly chart or 15 minute time frame but on a higher time frame you're still within a well-defined range so by using this higher time frame daily chart when we see the market structure shift bearishly we're expecting now the next three months to be a potential correction again the reference points that I asked you to go into and look for were

all the things we taught in September which is the order block bullish and bearish fair value gaps liquidity voids old highs and old lows so we're anticipating a move back into institutional reference points then moving lower looking for that same event to occur looking for lower level institutional reference points in other words price should be drawn down to a logical level not Randomness down to a logical level from an Institutional vantage point where we can see where they would want to absorb liquidity or engineer new liquidity into the marketplace so using this last 60 40

and 20 idea we want to look at how price in those ranges what is it created well the market has moved higher so prior to December 1st 2015 the marketplace had an Institutional order flow that was moving bullishly so that means as the market was moving higher every short-term low is going to have sell side liquidity or sell stops below that so in each one of these ranges what we can do is Define the range find the low and then we can note that as where all of the cell side liquidity is now once you

have your vertical line calibrated to the most recent Market structure shift and you've done the look back and you've defined all of the liquidity reference points on the 60 40 and 20 last trading days to the left and you identified institution order flow and you referred to all the recent institutional reference points that we've identified in brief listing now you're going to be doing the cast forward okay the cast four is when you look ahead with the same parameters we use when we look back we're anticipating the next Market shift in 20 to 60 trading

days again because if we understand and we our belief is the market will have a gyration a new directional bias okay or a shift in sentiment or as I call it a quarterly shift we cast forward 20 days to the right of our vertical line when the last shift was 40 days ago in other words if we've seen a market structure shift after a vertical line was delineated if we see the market shift in the last 40 days to the left of where we're at now we cast forward 40 more days because we're always using

a reference point of 60 days we cast forward 40 days when the last shift was 20 days ago again the common denominator is it's 60 days of range that we're always using we do this until we reach the extreme of the projected three month limit in other words where there would be another vertical line drawn on our chart or capping three months so what does that look like this is what it looks like here this is called the cast forward where we have delineated a calendar first trading day at 2015 December 1st as we did

moments ago we have a 20-day range a 40-day range and a 60-day range added to the right of our December 1st 2015 delineation or the vertical line and now what we have is a future day range or a data range the algorithm is going to anticipate doing a shift in the marketplace in that range between 60 and 20 days if we've seen the market structure break down as we saw a moments ago by delineating this low here then we're looking for a market move going lower to fill in a potential liquidity void seen here in

the range of 60 days to the right of our Market structure shift delineation that we have at December 1st 2015. we expect a setup on the daily chart essentially in the next 60 days so that tells you a time Horizons you could have to wait sometimes as long as 60 trading days now this is the reason why I'm not a heavy positioned Trader because I don't have the capacity to wait that long for the next trade some of you that may be perfect for you but for me personally it doesn't fit my cup of tea

but it doesn't have to require you trading for that entire duration you can use this to get daily bias contacts you can get short-term setups and you can get long-term objectives where the market should be moving over weeks and months versus limiting your scope on a short-term intraday basis and marrying those lower time frames now we're looking at the euro dollar in the same way but obviously like we mentioned earlier the U.S dollar is going to be inversely related to the euro dollar if we're expecting bearishness on the dollar Index we would be expecting bullishness

on the euro dollar so in the same way we're going to add 20 days to the right of our 2015 December 1st 40 days to the right of that vertical line and then we're going to add 60 days to the right of that line and on mt4 what you're going to do is you can just use a trend line and anchor it to your vertical line drive it out to the right and let go of it for a little bit and click back on the right end of it and drag it out some more and

you'll see the number that gives you a range is pull that out until you get to 20 to 40 into 60 and then you'll have the delineations that would be necessary to frame out how far the ipta data ranges go I want you to see that the high formed here on the euro dollar look how it falls directly right at the 60 day if the data range Nails it on the very high now this is a daily chart folks okay so think about what we're doing here we're mapping out where the highest probable time when

the time range should be influential in when the setups occur now we're going to have a lot of tools to help us move down into a lot more Precision even with this time frame but you have to understand when the setups occur again if it's something that's not random and if it is in fact manipulated and controlled there should be characteristics that repeat themselves and it should be measurable and we should be able to see things repeat themselves based on a criteria the algorithm will seek to do something in the first 20 days the first

40 days and up to 60 days after the most recent Market structure shift we saw a high form on the dollar Index and expected the market to move lower because it broke its Market structure bearishly we can see the euro dollar made a low here December 1st 2015 and price moved higher breaking Market structure bullishly for it in between the vertical lines okay once you have calibrated your Market structure on a quarterly basis and we're assuming back in back in 2015 December 1st that we would have calibrated there now again I'm going to give you

this as a homework because I want you to go through your charts and do this very exercise and you're going to see it's not form fitted it's the same stuff that you can do in your own charts don't just use what I'm using here go into your charts and do the very thing that I'm showing you here assume that you started doing the analysis in for instance July of 2016 and do the same thing okay and you'll see it still helps you it'll give you all the data points that you would be using but if

we see that we're expecting bullishness on the part of the euro dollar because the dollar Index was expected to go bearishly after December 2015 that means all the way up into March 2016 we have a stance that the bearishness in the dollar should bode well for bullishness on the euro dollar so between those two reference points because we understand that December 1st okay we go out forward three to four months we go as far as March 1st and by having March 1st defined as the beginning of the new month out that that far away we

project that that limit on the quarterly range in between December 1st and March 1st we would be expecting a bullish signal to form in the euro dollar and a bear signal to form in the dollar Index getting back to what we mentioned earlier about buy programs and sell programs the scenario would be even looking at a daily chart there's going to be a manipulation that takes place even on a higher time frame daily let's go back to the dollar Index okay do you see the highs here all these Highs are forming inside of the data

range of 60 days to the right of the beginning of December 2015. so all of these highs in here higher higher higher higher is seeing what after the market structure break below this low here all these retracements higher all that did was close in this liquidity void when this void closed in up here inside of the data range of 60 days we had to measure is there all this Justified by using a inversely related currency like the euro dollar now we can go and take a look at the lows that were forming in the euro

dollar here's 20 days 40 days and 60 days to the right of the delineation setting our new marker for the quarterly shift look at the lows here in the euro dollar all the way up to the 60-day data range the lows were higher in the euro dollar so this was under what accumulation the underlying which would be traded because we don't trade the dollar Index we use it as a benchmark the underlying is failing to make a lower low again at the same time that The Benchmark is making higher highs by all standards this looks

like bullishness every time a new high is formed and it looks like it's trying to go higher all it's doing is inching up the clothes in this liquidity void that reference point that we talked about at the beginning of this teaching this is what it's looking to close in it's pressing higher at the same time all this entire High business is not being seen with lower lows in the euro dollar and it's occurring in between where we delineate the market structure shift here we go out three months that means there's going to be a move

that takes place in the next three months on the daily chart we're looking for it to happen within 60 days of a new calendar month if this data range will go out and project that long the 60-day delineation nails the very high so you have a buy-in here and it ends right here after closing in this void okay so essentially what we're doing is we're framing the market quarterly and it gives us a context to look at the market modularly so we can take the price action and really look inside of it and look for

setups instead of just being lost in the whole grand scheme of things looking at the candles highs and lows and all that business you have to understand there's a the Rhythm and there's a there's a method behind how price is delivered even on a daily chart like this every three months to four months there's going to be a shake up in the market there's going to be a sentiment shift there's going to be a change in Trend okay there's going to be excitement injected into the marketplace to cause interest in a specific asset class especially

if it's an asset class that's been dormant for a while it hasn't been traded much they tend to take those markets and shake them up so by looking the market and breaking it down like this it gives us a great deal of context it's specific it's measurable it gives us a very clear indication of what we're doing and how how long it should take to form and then looking for the signs to create these setups you can see here at the lows we had a market structure shift that was bullish on the dollar Index if

we had these highs in here taken out on the upside so no highs were violated on the upside prior to this High here on the daily so institution order flow broke to bullishness here because of the shift in Market structure the Market's trading lower here okay now we have another divider okay at June 1st 2016. so all you're doing is adding another vertical line once you have one you go out in time you add these individually okay now you can calibrate them as you see fit based on what the Market's doing but I'm going to

resist the temptation to calibrate it based on this Market structure shift here because you could do the same thing here once this Market structure breaks foolishly here you can go back to May 1st and use that as your delineation and then start going 20 days 40 days 60 days to the right of it okay and then draw another vertical line every three months or so and then that will be the same thing to be accomplished here but I want to keep everything as it is here because I don't want to do any more that's necessary

to teach this specific principle because we're going to build on it as we go through January's content but I want you to take a look at what this is done we have a low here on the dollar Index we have a low here on the dollar Index that's lower and then we have another lower low on the dollar Index after the market structure has broken to the bullish side so once we have an interruption in the down move okay notice also it's been essentially six months of down movement on the dollar that's about when you're

going to see the shake-up that takes place and there's also going to be a seasonal influence that we're going to talk about in January as well but for this movement here I want you to take a look at the relationship of how the dollar makes these lower lows in here let's go back to the euro dollar at the same time let's see what was going on around June of 2016 in the euro well we're not seeing that higher high that would be reasonably expected as we saw lower lows in dollar let's go back again we

have lower lows in the dollar at the same time we should be seeing higher highs in the euro dollar it's not happening we see a higher high here but you have to look at every institutional reference point we have an old high back here relatively this is not higher it's actually lower this is a market that's heavily being distributed this Market run up here is just a run on buy side liquidity taking the buy stops out on short players already and then the market trades lower in between the vertical lines to delineate the next Market

shift okay there's a quarterly shift that takes place every three or four months and you can see that these smart money accumulation and distribution programs are very easy to see in price action but you have to Define it in such a way where you now look for it to occur also notice and I'll leave this for your own personal study how many days away to the right of this calendar start that's just High form I'll leave that for your personal study I'll also counsel you to take a look at this day right here this is

the election okay even on the day of the election there is exactly out to 60 days to the right of of here 60 days on the empty mt4 platform now it's the very very high that gives us the sell-off so initially it opened up traded higher on the euro dollar and rejected and traded aggressively lower this higher high again here's the old High this higher high is not being seen with a lower low in the dollar Index so dollars being accumulated the underlying strength is in dollar can't go lower and the euro dollar only went

higher to take out the buy stops they're going to reject that as false strength which is suspect rally and the price moved lower as a result of it so I want you to go through this notes this is going to require you a lot of thinking as that's why I said this month is going to be a lot of information that's why you have to have a video recording every single day and they have to be pre-recorded if I do any live sessions this entire month of January there's no way I have enough time in

the day and also live my own personal life to be able to complete all the things that's necessary to cover long-term analysis and have it all encapsulated in the first month of 2017 and then again framework going forward so go through the notes on this one again go through your charts also using it as well and again in summary all you're doing is you're looking for a obvious break and shift in the marketplace like this was one here okay the market trades higher and then if we were looking at the market in February we could

go back to January 1st and put our marker there and then go out 20 days 40 days 60 days and you'd get something here we're looking back and see where the liquidity is resting you're looking back to find what liquidity is and you're looking forward or to the right of it to get the very next setup in terms of the data range you're going to know how long it takes potentially before the next setup forms and how far back you look for the liquidity reference points for where the stops are on the above or below

the lows and where the liquidity voids and gaps are that you want to be referencing so it gives you context and believe me we're gonna have lots of examples of this for January's content but for the most part I want you to look at the market in a quarterly basis I want you to be able to calibrate your Market shifts okay on a quarterly basis how it's being defined in this video and regardless of where you're at in time like for instance say it was November 14 2016. what month would you calibrate your vertical line

to to start if you said October 1st 2016 you're accurate you're correct if you said anything other than that you're wrong okay you want to go back to the previous closed month you want to go back one full calendar month where it traded from the first trading day to the last trading day and then created a new month by doing that you calibrate yourself that way you'll be able to see what it is doing reference wise and then you start walking forward from there when you see an obvious change in Trend which we saw up

here we have a market structure break here bearishly for the Euro all this rallying up is just another attempt to do what we saw happening in the dollar back here when it had a market structure break bearishly it traded higher up the closing the void and then sold off the same thing is just being seen here Market structure break here smart comes up take out buy side liquidity and underlying weakness seen here the heavy distribution and the market goes lower as a result of it again we'll talk more on this as we go through the

content throughout the year but for January we'll touch more on this because I'm quite sure while your gears are turning now and you're probably really excited about what you're seeing some of you invariably are going to want to send me emails I didn't understand this I didn't understand that don't do that yet hold off on sending emails and wait and see if the content doesn't answer your questions by the end of this month until the next video wish you good luck and good Trading