2022 ICT Mentorship Episode 39

All right folks welcome back all right so we're looking at the s p futures contract for june 2022 on the left-hand side you can see that we have a daily chart and on the right-hand side it's a one-hour chart so i'm only going to do this to like save time also bring your attention to levels that are sensitive on one time frame higher time Frame and how it's subordinate on the lower time frame to those higher time frame levels if you don't know what i'm referring to obviously you'll understand more as we go through all

right so this morning i had a short little video that i posted about how we had recently been in this trading range in here and if we were to start to move higher And had displacement to the upside this could have been a draw on liquidity this is the objective i was looking for near term if we were to break higher we had news this morning and unemployment data which obviously you know given the state of affairs at present it's a heavy weight around the neck of the markets so we had a move lower prior

to The opening at 9 30. i talked about how until we had some kind of displacement i wasn't really excited about doing much in the marketplace i felt that 40 70 was a nice draw on liquidity which would be below these routes to equal those i posted that obviously before 9 30 a.m So it gave you a a target okay or my bias so i'm thinking what if i'm pointing down here before 9 30 am i suggesting that we're going to go up here or here or here no so i'm looking for evidence to support

the idea that i run below these relative equal lows is warranted I also stated if we went below those lows that we would draw into that fair value cut now with the benefit of hindsight obviously i'm talking to folks that have not been with me or they watched only post production or post market reviews or things like that it sounds like hindsight but i assure You the folks over there on twitter and it's time and date stamped i don't delete any tweet and if it's a typo it stays okay and in my age and my

eyes failing like they are it's probably going to be a reoccurring theme over there that i type something correctly but i'm not sweeping anything under the rug i'm not trying to hide anything from you I came out in video explained that i would be more interested in seeing this level down in here and if we did we would draw into this area here now that is suggesting several things number one we're expecting the volatility or i'm expecting the volatility to be significant enough to take us below these lows and if that was to occur then

we're going to draw all the way down into here which means what we're Going to have a small range day on the daily chart or a large range day clearly a large range day so there was a lot of things that i laid in your hands this morning that hopefully give you hope that these things are predictable obviously i'm not without imperfections uh yesterday i mapped out An idea on twitter and engaged and i took a loss it was a five point loss it was not a significant loss and in fact i called a level

later in the afternoon how i could have easily gained that back now when i say those things understand the premise okay why why am i saying that am i saying it to beat my chest and sound egotistical no I wanted everyone to see what it's like even if i do something wrong and i don't rush out there to try to fix it okay because that's going to be your initial response to you taking a losing trade in your demo account or worst case scenario rush into trading live funds when none of you are ready to

do that yet now i understand there's traders in here that are watching the videos and you're probably profitable When i say that you shouldn't be trading with live funds you shouldn't be treating with life funds with these concepts because you're still learning them which i'll end this video with a request from all of you so you guys can let me know in the comment section what you would like to see going forward i have a suggestion and you guys are open To give me input on that and you as a community will let me know

what it is that we're going to be doing all right so on the daily chart to the left you can see we have those relative equal lows i mentioned the draw on liquidity was there so i was focusing what sell side or i had a bearish spice i gave conditions that we went below there it's not going to go down there to go up it's going to go down into this Area here so with those levels transposed over to the hourly chart now this level here is this level on the daily chart this level down

here is this level now obviously some of you're like that's pretty obvious but you'd be surprised how many new students i have and they get lost in the time frames so whatever you're doing on your higher time frame You want to start your annotations there but keep them simple you want to see a level that it's going to draw to and or what key levels that may be a factor for changing or suggesting a bias is in play as i did this morning i said i believe we're going to go down below here i thought

that's likely to occur and if that does happen we're drawing into this area here not Just going below relative equal lows to go higher because there's a lot of people all around the world that are being exposed to my content whether it be directly from me or someone that's learned my concepts and have tried to create something new with a you know twist of their own they're teaching that it's always a relative Equal low or equal lows to hit those and then go the other way that's not the case narrative must be understood and narrative

unfortunately requires experience and experience is what i'm lending you so when i'm talking to you or if i'm pointing to something i'm lending my three decades of experience doing it so that way you can hopefully grow faster but i'm not trying to rush you Along but it's easier for a student to be engaged when they're shown something to anticipate something and then they have the benefit and enjoyment of watching it pan out in their own charts which i think that's the epiphany to every student under me and i guess anyone else when they have that

moment of astonishment where it delivers as they're expecting or hoping to see happen It feels like they're in alignment with the marketplace which is many times not the case for retail traders and new traders or long-term you know struggling traders that or break-even is can't find their footing and can't be profitable it's a wonderful feeling and i know once you have that moment you'll want to dig deeper And that inspires me as a mentor too so if you watched this pan out today and you expected it based on being in the community and audience members

this morning before the market opened up with my commentary uh give me a heads up in the comment section and what was it like to watch it unfold so over here on the hourly chart we had a fair value gap here Swing low we had displacement we consolidated going into midnight last night new york time it rallied up traded into a fair value gap here and up into the bearish order block so we have this order block it touches it you can take that trade but i'm trying to draw your attention to these areas here

okay where there's three candles one candle in the middle that has an Exposed area that is not overlapped with the previous candles low immediate candle to the right of it so there's that little section that we call a fair there you go price goes above it hits the order block but look at the candles see how the candles bodies stay predominantly in between these two levels here so yeah there's a wick and there's a wick but Largely the volume is encapsulated in between these two levels i drew your attention here i mentioned how we would

like to go below those lows and then we have an old low back here so even if we weren't looking at my commentary or watching it this framework here then running to that low is something that you should have Identified but if you didn't it's okay you'll get it in time this price or level here is the opening price at midnight new york local time so i'm extending that out in time so now think about what i've done so far here before the fact in twitter in a video and in a post i stated that

i'm interested in seeing these taken out And i like 470 as an interest okay that's a draw in liquidity so for up here and i'm stating that i think 40 70 is interesting your eye should go to that level and study what is at that level that may be of interest to me so that way it forces you to dig into the chart now in the beginning working with me as your mentor this is going to be very frustrating for some of you Because unfortunately some of you just want it spelled out for you and

i don't teach that way you're not going to learn that way and i'm going to spoon feed you and you're going to learn better and more productively by you going in doing the very things that you would be doing if you didn't need me holding your hand which means going into the charts looking for the Evidence and details you know yourself so you had a bearish bias given to you you had an objective a draw on liquidity and in the chart here i'm showing you the framework for the daily range the opening price at midnight

i teach they're typically if there's going to be a down day which is what i was suggesting Before the market opens at 9 30 we would see a bearish day and look for a draw to 470. if that occurs your attention should be down between these two levels here based on that daily chart okay now incorporate power three my power three concept is the accumulation of shorts the manipulation of those individuals that were already short That's what this is here that's a judas swing the market goes up to a short-term premium which is high to

low back into a premium relative to this dealing range high and that dealing range low then the market breaks lower trades below the short term relative equal lows here retraces consolidates a little bit breaks once more Consolidates and then attacks the cell side here and aggressively runs through the 470 which is what we were anticipating based on my commentary before the market opened and then we take our attention down to here so if you are short you take a partial here then you wait for the daily range to fulfill that means you have to submit

yourself To time what time three o'clock to four o'clock wait to that last hour of trading because you'll get the delivery of price when it trades down into that all right now we have the 15 minute time frame on the left-hand side and the five-minute chart on the right you can see how we rallied up into that fairway gap on the hourly we broke down once more traded back above the Opening price at midnight here breaks lower consolidates all of this we'll talk about later in the video then breaks once more trades up into a

fear of a gap here breaks lower and aggressively runs into that higher time frame daily fair value got on the five minute chart you can see here we have the equities Opening at 9 30 a.m here and i mentioned when we were down here i said price is initially showing weakness it's going lower traders are going to get caught short doing that chasing price going lower they're gonna reprice the 4105 There's buy side liquidity resting there and a fair value gap the market immediately after my post runs to that level i engaged that with a

demo trade i entered it and i took profits below that short term low here and then i'll teach you how i knew this was reversing on me and saved my stop and also took a second partial off It routed once more blowing out that short-term high so we have a lot of chop in the initial opening range low higher high than that high lower low than that low lower low again then rally through this high and left this fair value got consolidated a little bit in here trade it back down in Once more back into

the opening price at midnight which is this line here if you're bearish you want to be going short at or above that level or as close as you can get to it like this one here okay the market drops down between 11 o'clock and noon it consolidates then retraces back up takes by side here breaks lower returns back to A swing low which we'll talk about in a moment breaks lower again aggressively runs for that 470 level and it's off to the races down into the daily fair bay you got now if you look at

the daily range through the scope of a five-minute chart here you can see the opening price here at midnight prices gravitates around that and in london They rally and start building in a premium ahead of the 8 30 time window the market creates the high breaks takes out short-term cell side liquidity here retraces back up into consolidates for the majority of the afternoon then it breaks lower and then aggressively attacks the cell side below 470 and then going right Back down to that 440 level and then hanging out and consolidating and closing inside that larger

daily fair value got now i want you to take a look at this price action here we're looking at the afternoon so with the morning aside because i walked everyone through that basically on twitter and with pre-market analysis and commentary The rules for a afternoon session trade before you even consider trading in the afternoon session you have to consider what is the daily range trying to do is it trying to expand higher is it trying to expand lower did it reverse in the morning session and is it going to have a counter trend move or

is it going to just consolidate Because it's waiting on a big news event the following day today we had a big news event we had employment data the market consolidated and we had a bearish bias we were looking for 40 70 based on my experience i was generous enough to give that to you beforehand with commentary suggesting it would trade down to that lower time frame fair value gap on the ema s p's daily chart so the framework Was one-sided it was not ambiguous it was specific about what we were looking for once the market

started to break after lunch when does lunch end at one o'clock in the afternoon new york local time that is here so 12 to 1 there is our New york lunch if we're bearish what did i teach you the market will do what it will clear the stops during the lunch hour what highs were formed in the lunch hour here and prior to it going in this was the bicep liquidity pool or short-term high so at one o'clock the algorithm reprices and runs to take the stops above the buy side Here so during the lunch

hour we're seeing that they took the stops here you can if you're aggressive you can put on a trade here because we're in a directional move we're trying to anticipate a large range day in large range days can typically form with a busy lunch schedule and i just Recently taught this that the market if it's going to be a fast market during the lunch hour it can create a significant higher significant low but the premise mainly is if you're bearish you're going to be looking for the highs to be swept because they don't want participants

to be profitable that may have assumed a short position from the Morning session or prior to this high forming they may have already been short here and instead of letting the market release and break to lower pd arrays in a discount market the algorithm reprices knocks those individuals out because it floods the market with what buyers at a higher price higher than what than it was here than it was here So smart money utilizes this run above the short-term high as an influx of buying interest and liquidity that's available immediately while the market's being priced

here and held at that level smart money will go in and sell To those buyers that their orders will be resting about here so their stops are being tripped their short position is being knocked out and conversely there's traders that would see that high being broken as a means of getting long and they have a buy stop that would trigger them getting in on a breakout so smart money is Cannibalizing those two types of orders what orders are they buy side liquidity so the counterparty to their short has to have buying interest that buying interest

is being engineered by the algorithm and it runs up here so smart money goes short here with the expectation that they can take off a portion here Back to an old low of 470 and then 440 and then into that fair value gap on the daily chart now sticking to the rules of the model i'm trying to teach you if you do not trade during the lunch hour that's fine you're going to wait until after lunch before i set up the form those of you that have been studying my channel here on youtube you understand

that this swing low here To a higher high than that of here is a breaker okay that's my ict bearish breaker what is a breaker a breaker is a pattern where price runs out a pool of liquidity in this case is a buy side liquidity pool and then it reverses and trades back down below that short-term low if it trades back up to that and the narrative is bearish Notice that it's not just simply we have this pattern here and that's all it is no you must know what the market's likely to be reaching for

if you leave that out it's not a breaker it's a gamble it's a guess it's a speculation that's aimless notice the difference there so this down closed candle the lowest one prior to move up clearing that Short-term high and i teach this on the youtube channel so if you've already gone through the 2022 mentorship videos and you're caught up you're welcome to go through the other videos as well but i'm trying to keep your focus in this series because it's very easy for you to go into other series on this youtube channel and get inundated

with things and create so many questions that Will feel like they are pertinent to this model and they're not okay but i'm just giving you a comprehensive view of what it is i look at in price what i'm judging whether or not is it likely to continue going lower and as price starts to move back up in this level i would expect and anticipate that level repelling price and go lower and then be aggressive about trading below that because there's sell side there and then not going below this low Here to go higher we want

to see it go through there and accelerate going down it wants to run quickly for that 40 70 level because there's larger pool liquidity below that and then aggressively run into that fair value gap on the daily chart because that's the imbalance that the algorithm is going to want to reprice too in the afternoon obviously you can see post breaker being traded too heaviness falls Below 40 70 and then accelerates see that see how fast it accelerates down small little consolidation no retracement no return back to an old low broken support becomes resistance forget about

it this is an algorithmic cell day retail doesn't get to do a lot of those retail concepts you either are on board beforehand or you watch the ship sail off without you okay and that's basically what you end Up seeing here in the price of 440 it gets traded through and back into that daily fair value gap as i mentioned would be the likely target for today all right so this brings me to the point of the video i promised everyone on twitter that i would touch on and i did a little bit of a

rant on saturday i took my car out for a spin and you all got to see what it's like to be around ict Where i don't have the benefit of having the camtasia studio editing out because there's a lot of times while i'm making these videos that things in the house will go on my kids will interrupt me my dogs will come in and bust in the door and you want me to play with them or i'll say something wrong and get upset about doing something incorrectly while i'm Producing the video so they're like uh

you know human traits you know i'm i'm a human being i make choices sometimes that aren't the best ones and sometimes you know i'm prone to have chemical imbalances because i'm bipolar and i don't make any excuses for that i don't make any uh attempt to hide it because i know if you spend time with me long enough you'll Notice it so during the rant i gave on the twitter spaces i guess it's like a podcast feature to try to build up on that platform i tested it out this weekend and i mentioned that i

would share with you all the model i'm teaching my son caleb i'm not afraid to teach it to you i'm not trying to hide it from you okay but i wanted to make sure he had some foundation to what it is he's trying to Do and i wanted to spend time with him and figure out like because of his characteristics you know what's his concerns what's his fears what's his comfort level is he trying to you know trade the whole daily range or if you're trying to get in and out real quick small little pieces

that type of Personality you know inquiry that you have to do as a trader too you don't take a model because you see somebody else doing well with it and say i'm going to do that because if it doesn't match your personality if it doesn't match the way you see and engage price action you'll never make it work for you okay so I'm aware of that i'm cognizant of that effect on individuals learning things not just this but anything but with something so technical as this in this industry with as many as we have in

terms of variables for choices what to do you know think about all the indicators that are out there think about all the the trading styles and methodologies and Teachers and their respective personalities so you have to be able to number one be able to put up with them and listen to them to learn from them and sometimes i'm off-putting like i can't retain the attention of everyone and or they don't like my teaching style or they don't have any faith in me or whatever I'm not gonna scratch the itch for everyone but for those that

sit down here and they want to learn from me obviously you've seen live accounts being utilized this year my son started trading in the first week of may of this year he started trading a live account and he opened up with amp futures And i'm not repping them i'm not saying anything for you to go and open up an account with them but i have been asked are they a good broker i can only report the fact that he has not reported any issues with his fills being executed and done professionally The only issue there

was was they weren't happy with the fact that i was sharing one of his statements that he emailed me and they asked him to ask me and me to take it down so i took it down but i can talk about the numbers okay so here's what he did he had a equity low of 2810 and in a matter of a number of weeks until Just at present he didn't do any trades today okay we were observing i was teaching i did trades myself but he was observing he's in this the position of spectating not

speculating today because i wanted him to understand that the the large range day can creep in like it did in the afternoon and it may not look so clear in the morning but we were looking at it with That lens and i was showing that beforehand in the marketplace and in the commentary on twitter but he's at 18 300 plus so in the course of like four weeks you know that's about 400 return so that's in my opinion you know that's a remarkable growth that that shows obviously He knows what he's looking for he knows

what he wants to do he wants to obviously grow his account he wants to build it up and not try to hit grand slam home runs and because he works at a low paying job it's real easy to hit that threshold that he earns on a weekly basis so when i sat down with him one of the things i felt was imperative Was he has a very short attention span he's easily distracted so i wanted to give him a model that gave him a very low threshold for a return of points or pips and since

we settled in on the index futures market for him it ignores the spread issues that are going to be a plague for traders that are using forex It's a professional market it's a very liquid market the e-mini s p and its systematic in the way it delivers price so if i can sit down with him i want to take him to the chart at a specific time of day with a specific logic in mind and then have him hopefully See a pattern that repeats it may not form that day he sits down then he has

to just move to the sidelines and do nothing that choice to say i don't see it today and then if something forms after the charts get closed or if the trader moves away from the charts And they come back later on and they see it moved a certain way that fear of missing out you need to squash that quickly in the beginning and the only way you do that is by back testing and seeing how many times these things form so while we did that together because i'm his father and i'm literally next to him

like i'm next to him giving him my experiences as close as i Can possibly be next to doing it you know what i mean like i'm sitting here acting like the internal voice for him i'm saying okay what do you see here what do you see there what happens if you did this and what happens if you did that where would you think price is going to go so i'm literally being the internal dialogue that 30 years of experience would have spoke to him internally so he has that inside advantage okay that that that home

field advantage if you will he's pushing the buttons obviously and if he elects to do nothing based on what i'm asking about in the chart sometimes the market moves he's not in it sometimes he does something and the market does something against him and he Has that decision of do i let the stop loss get hit or do i just bail now and figure out what it is that i did wrong or what i'm uncomfortable about so it may not be the ideal learning conditions for everyone but i know where i'm leading him i need

him to be prepared to obviously look for a specific element in price Action and it's algorithmic okay i'm not sitting down with him with anything retail i'm not filling his head up with you know bull flags and bigger flags and when they fail because i teach my you know price action students to look for those types of things i'm not teaching him trend lines i'm not even bringing any of that stuff in i'm taking him right to the brass tacks of what it is that the algorithm is going to do Because i only want him

to be a one-trick pony right now that's all he needs to be able to feel confident to leave his job so i said i would teach it i said i would show it to you so i'm going to kind of give you the loose framework you know what it is that i try to teach him what he's looking for those types of elements but before i get into it i want to remind the viewers because This might be the first video you came across with my content so i want all of you and to be

reminding those of you that have lost this in the conversation throughout these videos that price is delivered by an algorithm okay there is no buying and selling pressure that is something that they use as a excuse for what the market does and or doesn't do And algorithmic theory is based on time and price now time and price when i wrote this algorithm coding it leans heavily on the time element okay what what does that mean what time of day what day of week what week of month what month of year What seasonal influences so there's

several factors i'm encoded in the algorithm that will seek these reoccurring phenomenon that can be capitalized on by those individuals that know what it is that they're hunting okay that little billboard that flashes uh hey it's time for you to engage now okay that signal that pattern that set up that framework whatever you want to Call it the moment right before you push a button that's what i'm trying to take his attention into okay i'm taking all the other distractions away and i want him to go right in and look at that specific element price

levels are useless until time is considered just because it's trading at your Favorite price level this is the reason why support resistance is a fallacy there's many instances that anyone can go back in hindsight and say here is where this line worked and it repelled price up or down do it live consistently pick the right level consistently and that's the problem that retail traders have i went through that same thing I couldn't pick the right support resistance level even the higher time frame ones because sometimes you'll have a move where it'll go up hit a

level that would be otherwise viewed as resistance and then it starts to go down and then it goes one more time up higher higher and then higher high takes my stop and then i'm afraid to go back in and go short right you've all experienced that i did the same stuff in the 90s 1992 1993 1994 all those types of fearful events of getting stopped out and then abandoning my opinion about what i thought the market was going to do and instead of saying okay the framework's still valid i just had the entry wrong let

me go back in with less risk this time less leverage this time and see if it pans out But like most of you and everybody else those stop out events create fear and anxiety and uncertainty so that's why time has to be considered first because the algorithm is going to start working a specific macro that means a short order of things that it will do as instructions it's going to seek a specific level move to a premium move to a discount Suddenly move or consolidate and wait for another time element in that same trading day

or trading week or month okay so that's the reason why i i'm teaching you that that element of time is crucial your inability to know everything that there is to know about time is going to be the area where it which You will have the largest growth in but you'll have the initial adversities when when when when when to do this when to do that when going through the motions of what it is i'm teaching you it'll happen for you that you understand why certain things are occurring at a Specific time and i can't articulate

it any better than that it's just a matter of doing it sitting with me every week looking at what is i'm trying to share taking your attention to a specific price level over time your your eyesight your understanding the visibility The perception of price will be dialed in you'll know what it is i'm doing because you've done it with me for days weeks and months okay time is of no use unless price is at a key pd array okay just because it's time for you to be able to sit in front of the charts it

doesn't mean anything unless it's at a tpd array so in other words Blending the two yields astonishing results and the precision that i share with you i've done a plethora of examples proving precision proving prognostication forecasting objectives targets the whole business okay it's not my aim or goal to try to do magic tricks for you okay I i don't want to be out here trying to be david copperfield of the markets and say here watch this sleight of hand and are you amazed by that are you amazed my task is i'm making you a wizard

okay i'm teaching you the craft i'm not up here performing for you i try to make it as engaging as i can to keep the attention span on those that are very limited and bored easily i try to You know get their attention quick with little things that will draw their attention and hopefully keep them engaged long enough for the effects of learning properly to take root so if you look at this price action that's been staring at you does anything stand out on this chart if you're a new student to price action Or if

you're a new student to me a lot of these things that you're looking at here in terms of the price action all the movements and such it looks like a foreign language you've never learned how to read well if you're looking at price action like this it looks like it has no reason for doing what it's doing it's completely random And one of the fun things i get the experience as a mentor with the insight that i have being in a position where i have done a lot of the producing of these things and the

authorship of it i get the benefit and pleasure of watching people get blown away by the incredible detail That this algorithm repeats and follows if we take all of the noise away from just all this back and forth movement and we add just a little bit of lipstick suddenly we have a lot more to work with what's the first element to algorithmic theory price or time time So time begins in the morning session for us as a index futures trader at 8 30. that's when the news embargo lifts that means at 8 30 that's when

there's usually a news event or some kind of economic report that comes out at 8 30 new york local time so that's the reason why i tell you to set your clocks on your trading view platform Here to the local time in new york this candle right here is the 8 30 candle in new york time this morning i outlined how i felt that we would likely see the market move to a liquidity pool a specific liquidity pool and it would draw down and attack the sell side i teach my son to look for setups

that are going to target a specific pool of liquidity It means i have to have a clear idea where the market's likely to go up for buy side or down for sell side i'm not trading a support and resistance idea i'm not looking to go to a level to watch it repel away that's not what i'm doing that's a fallacy that's the reason why retail traders drop the ball so many times and or blow their accounts and never find Consistency because they're trying to force something that is designed to fail i don't know why it's

so hard for people to acknowledge when they are met with extreme adversities trying to force retail logic to work can you make money with retail concepts yes yes you can if you understand how to reprice like i'm teaching it if you did those types of things without understanding why the market Should do what it's doing why is price booking the way it is what does that mean why is price going to these specific levels at the time it's doing it there's a logic behind that and for some that want to say there is no technical

science you know at some point you know when does it stop becoming useful all of it's useful every tiny minute little fluctuation in These price movements are absolutely controlled engineered and premeditated either by ai artificial intelligence that's the algorithm it's following the code that's been written for it or there are times when manual intervention comes in and they will send price to a specific price level sometimes it's Going to be abrupt and aggressive and it may not be fun or pleasurable being a part of that move other times it will be exhilarating because you were

on the right side when those moments of intervention occur that's a manual intervention that means someone is literally going in and manipulating price to do a specific thing what would That be like fomc a rate announcement something to that effect and the market will reprice aggressively quickly to a price that's well outside the scope that would be reasonably expected for that short term perspective big explosive price movement the economic calendar is useful in that Respect because you can go in and see where these events are likely to form so i'm looking for days in my

son's model where he can go in and engage price when there is a medium or high impact news event or if there is a lack of one he can practice but he shouldn't be engaging with his normal risk percentage okay So the first element is time so at 8 30 in the morning that's when a news embargo lists that's the first element of time that i taught you with this model the second one is 9 30. okay that's right here the first here at midnight new york local time that opening price is here did the

market rally above that opening price At 8 30 yes are we bearish i proved this morning i was expecting lower prices i preferred lower prices so that means we're above the opening price at midnight so my power 3 concept is you want to be shorting at or above the opening price at midnight in new york local time if you're trying to capture movement on the daily range On a down day so that opening price look what happens we run up take out short-term highs here that's a short-term run on liquidity who's going to have stops

at that one minute anybody that would have put a stop loss in on these lower time frames there's traders that are doing that all the time The algorithm is not aware of how much volume rests above or below a high or low that's penetrated it has no understanding of that it doesn't need it for folks that are perplexed by that statement and i've said it several times in the past ever play a video game how about pac-man i'm a child of the 70s i was born 1972 August 8th 7 11 p.m see that 7 11.

lucky 7-eleven i came in the world with some luck didn't i so when you're looking at a game like pac-man okay what keeps pac-man inside the boundaries of those lines that make up the maze that it runs around and collects and eats those dots until it gets to a power dot or chased down and killed by the ghosts The program language keeps him limited the play board or game maze has limitations those limitations are programmed as such every video game today they have a map okay fortnite call of duty battlefield all that genre of video

game creation All those maps or territories that the player gets to enjoy and explore they have limitations okay the daily range has those limitations programmed into it as well until manual intervention is brought in and those initial boundaries are removed okay so think of price like that so If you know that we're likely to see that in terms of like an analogy we're at at 8 30 we're above the opening price at midnight we ran a short term high here the algorithm doesn't care how many orders we're above that it doesn't care it just has

to take out a short term high it does so it's at a premium it took out buy side so what is it likely to do now because we're in a bearish day and we're above the opening price and It's at 8 30. reprice for what sell side where sell side this level down here 4101 or what 4100 big figure 4100 level so there's liquidity resting below that what kind of liquidity if markets price is here and sell side is here it's old lows There's sell side below that so market price is here relative equal lows

in the past is this level here go back in the beginning the video okay you don't understand what that level is then that liquidity is sell side we're at a premium here this would be a discount because market price is here or here Anything below is what discount so the algorithm goes from buy side liquidity at 8 30 on a bearish day above the opening price wait for the market to trade lower it does short term low see that swing low trades through it creates a fair value gap rally back up to it sell short

with the expectation is going To run to sell liquidity this is what i'm teaching my son to do at 8 30. that's all he's trying to capture there in this move he may not run all the way to the sell side he's going to get his five points once he does he's stopping he gets out and then he watches the move go to the sell side of cody pool why am i telling him to get out five points number one five points is very Very easy i think that that is the lowest threshold of points

a setup should hopefully yield if you're trying to do anything less than that you're doing ultra short-term scalping and the commission costs will kill you it ain't worth doing and i think five points is an easy threshold you can do it once in the morning you can do it once in afternoon even on a really weird choppy day You could reasonably pull out five points if you have the experience you don't have that experience yet so let me put that in your mind right now because i don't want you thinking well i'm going to go

out there tomorrow and do what i see you said i've only been trading for a week so i think he's really convinced me and i can pull this off and it's going to be ten points a day for me five in the morning five in The afternoon this is gonna be cakewalk i'm not sure this put in my two weeks into this now until the boss pound sand no no no no don't do that you're not ready but if that's a goal for you start working towards it so over time my expectation is that my

son will have a better understanding what he's doing and those five points he'll have Hopefully learn to take a portion off at five points and then hold for that liquidity pool to be hit and because of doing that very thing he's rewarding himself initially while he's learning so he engages him it shows that he can make more money doing this than his job okay that does not mean that you can do more than your job i'm saying this is my son he has me as his father i'm sitting with him i'm coaching him i'm telling

Him what he should be focusing on i'm questioning why he isn't focusing on other things so i'm actually like co-piloting him you know i'm giving him you know visual and audible clues as to what he should be using to navigate price so don't think for a moment folks that he sat down you know and did like a couple days of talks with daddy and now he's out there making 400 gains from Ezekiel up to where it is now that that is not what took place okay he has the benefit of me sitting with him talking

to him okay much in the same vein that i did with you all this morning on twitter where i said this is what i'm looking at these are the levels i'm looking for if this breaks i think we're going down to that level i'm doing that on a minute-by-minute basis with caleb so he's Literally driving a car with me talking about every pothole every potential hazard that's coming i'm reading the mind of all the drivers around us and telling him what they're going to do before they do it so it's it's it's a totally immersive

experience for him and admittedly it's A little intimidating for him it's too much at some times and we have to repeat certain things or he gets confused or he's apprehensive or reluctant to do something or he second guesses something so you know all those types of things that any human being would have you know with dad's expectation to learn how to do this and also you're dealing with real money so i'm teaching him to respect What to do and when it's wrong he feels it it's not a matter of well you know i can reset

a demo account no this is real money so when he sees the money going up in his account he feels that good feeling if he has entered a trade and it's drawing down on him he's feeling that now i know what i'm looking at i know what i'm Expecting he doesn't so i'm allowing him to experience those things but five points i think is a reasonable low threshold over time he will by default learn to trade with more than five points but i gotta give him something to hit that it's easy that low-hanging fruit approach

that's how i teach just like i taught on baby pips when i first came out 25 pips a week you should be aiming for that and when you get it stop does that mean when you're trading 10 years from now that's all you're gonna do no people that have been highly critical of me they like to take the things i say out of context and make a straw man argument about it and they have no idea what i'm doing with the new student i'm targeting A audience that is trying to do something that's going to

give them encouragement feel like they're they're progressing and don't think for a moment that five points just once a day isn't good because you could literally do very very well think about it this way if you just did five points in the email asap one contract and never engaged Money management to the degree where you start parlaying it up and start doing two contracts and then two contracts becomes four contracts eventually and then eventually you treat me if you just did one contract okay so calm down for a second and just listen to me for

a moment if you just did one contract of the mini s p that means one point in your favor or against you is worth Fifty dollars now fifty dollars times five that's 250 dollars a day if you did that consistently once every single day that's 25 handles or points a week that's 1250 a week i'm quite certain after polling my audience on twitter which isn't my entire audience obviously i have a lot of people there's a lot of people that Actually leave comments on my video on youtube that i can see that they're a subscriber

and i can also see the comments that are left by subscribers usually i answer the questions that people present to me if they're a subscriber because it's kind of like a little perk because i i have like a goal i want a million subscribers i'm going To lie to you i want to have a million subscribers on this channel and i'm surprised and really honored and humbled that so many of you subscribed to this channel and i mean 260 some viewers i thought by the end of the year i could have had 250 000 but

now you know i'm almost you know on my way to 300 000 before i know it you know this this channel could be in a year or two at my goal of a million subscribers but folks that follow me and they leave comments if it's a comment that i want to address i usually will respond to those that have that little mark next to their name you can't really see it but i can because it's the channel i'm the owner of the channel so I can see who's commenting with a follow and if you follow

me i appreciate that i thank you for that but i don't want any of you to think that you're going to make five points every single day for instance i took a loss of five points yesterday i could have easily went back in and made Four times that later in the afternoon but that's just me you don't have that skill set in confidence yet that okay if you take a loss and you took five points as a draw down you're going to want to go back in and do it right away whereas i can and

i chose not to because i want you to feel like okay it's okay And i even proved that i can call a move even in the afternoon i said this is where it's going to go i'm pointing to a specific level and went to it i said that we would run out the lows and we would break a trend line that retail thinks is you know noteworthy and they destroyed it go back and look at the comments on twitter i don't delete a single tweet Zero so i'm laying breadcrumbs down for you but i'm not

going to spoon feed you you're going to earn it here and that makes some of you angry it frustrates some of you and no amount of frustrated replies to me or you know pointed statements are gonna is gonna make me change the Way i do it because once you earn this skill set you will not regret what you went through to get it and you will treasure it you'll appreciate it it's not like reading a book that teaches you a magic trick and then you want to go around telling everybody how to do the magic

trick versus getting good at doing the magic trick There's a difference there okay so what i teach my son to do is at 8 30 he looks for a setup like this if it's if it's a bear scenario he's looking for liquidity below the marketplace and he's looking for some type of framework where it gives a fair value gap that is his pattern that's what he settled in on and we're gonna run to liquidity and if it Gives him five points he's out even if the framework allows for 30 points he's getting out at five

now i already know some of you hot shots has been doing it for a while or like to be critical or troll me and you just run your mouth oh this guy he's telling his son it could move 30 points but he's getting out at five points who does that someone that's Never traded live money before that's who's doing it okay someone that's already made 400 some percent in one month that's who's doing it okay someone that hasn't had a losing day in weeks that's who's doing it so sit down take notes or move along

in the afternoon there's a setup as well we'll get into that in a moment but the next area of Opportunity is the 9 30 hour okay so equity is open at 9 30 and this is one i outlined the market was down here i mentioned on twitter i said okay they opened it up at 9 30 initially started sending it lower and we'll talk about that in a couple minutes of what that was and what information could be gleaned from that but i said that They're going to take price up into the fair value gap

and also clear 4105. it's all time and date stamped folks you can go back on twitter take a look at it it's there it's undeniable it's not ambiguous it's very specific look at the time on your chart it's here i'm saying it 4105 that's where the buy Side liquidity is that's where the stops are and it's a fair value gap there it's going to reprice there and then you're gonna see the move the real move for the day market drops from there i went short on a demo account and as price went below this low

i tweeted first go back and look at the little recording okay i'm not in here because there's people already going around in other forums and other social Media saying i'm trying to pump and dump because they don't have a big audience they think i'm going to go out there and say something hopefully create some kind of movement in the marketplace and then i'm going to get out before i say i'm getting out no i literally record myself saying pay the trader and then i go in and i take my partial as it goes below here

go and watch the Video so i'm not doing any of those types of things folks okay i'm going to be your best friend i'm gonna be the best friend you could ever have in these markets if you just simply relax and trust me i'm here to help you i'm not here to ask anything of you except for subscribe you know that's Like a trophy for me if i get a million subscribers i want to have that i'll put the work in to earn it but i'm not asking you to pay for anything i'm not asking

you to worship me and cheer my name and all that stuff none of that i just want you to have fun to hang out with me that's it because i promise if you do if you put the work into this stuff and hang out every single day show up Every single day even if you don't understand it if you feel like you got confused about what it is i'm doing keep showing up every single day that discipline will yield results each one of you gonna have a different timeline is when you're gonna get it i

don't have a deadline i don't have a i'm stopping when it gets this date i'm here now okay i'm enjoying myself i'm having fun and Hopefully you guys are having fun too but this setup here eventually came back and ran back above the short-term high and ran here so we went one more time where above the new york midnight opening price so we're at a premium and above the opening price at midnight and consolidates in here and then it breaks down and later on in the afternoon we'll see what it does now if you watch

the video You can see that i actually entered in here went short i was aiming for this i had a objective of taking two contracts off here so it went below that i tweeted take partials or pay the trader first then i went into my demo account and closed out the two as it went below that low so i was managing Your expectations i was showing you what to do with your demo account if you were doing anything and engaging and then i did my version of it so i was given the instructions first and

then when the market started going up i outlined this order block here it started to repel away from that i actually mentioned i wanted to see price stay below this level here all i did was extend this and then mentioned that uber Taken order block here was problematic i had anticipated if you watch on there in that short term video i had pulled up the partial close of three more contracts and my stop i hadn't moved except for moving the break even a little bit better than break even after i took the partial here and

then once it went above this order block here that's when i closed three more contracts before the stop also hit Now i could have closed the entire order but to me that would feel like panic okay i don't mind a stop loss getting hit because that's teaching you that's what they're paid to do you're paying a stop loss to do its job i'm not worrying about price going higher than my stop loss but if i have an ability to take something off before the stop is going To go there and maybe maybe it goes close

to the stop loss and it doesn't hit it i've taken something off which was that initial partial here plus three more contracts and i had a remaining three contracts that got stopped out better than even so i didn't scratch on any position i didn't take in my opinion large enough position off Down here in retrospect but that's how it's going to be for you now the question is going to be this why did i pick this candle why was i concerned about it when it went above it and why did i close the three contracts

when it went above that how did i know it was reversing basically what you're asking now If you look at this sell side liquidity pool we have outlined here that was explained on twitter it's also been shown on this video here at the beginning of the video so if you look at the liquidity up here the old lows we went below that so south side's been tapped here then it went lower and created a relative equal lows here creating what another level of sell side below that went below that So we now have another low

formed here what's resting below that sell side people are always trying to buy lows they're trying to pick bottoms so the sell side gets taken once more here and then this low gets taken here so notice what's occurring we went below cell side here here here here here and here Without moving very much notice that so after we've taken buy side liquidity here it should have been off the races and went lower and this should have capped price on the upside because it's an up-close candle institutional overflow my rules for teaching that to you is

if we're bearish and overflow is bearish This should have stopped price like it did here it should have maybe touched it one more time here or just bumped above that short-term high and then went aggressively lower it did not do that that's why if you watch the video of me actually doing the trade i actually pull up the order to take three off because i'm watching to see if this is going to fail because it didn't tear off and take that low out Because it was reaching back up in this order block and then started

going into it i knew i was going to get smoked on the stop so it would be easier for me to just take partial three off which i had pulled up on my chart ready to go versus just clicking the closing the entire trade which in my opinion wouldn't be as Instructional for you because i want to show you how you can still many times take something off again and it might not hit your stop-loss and then it resumes going in your favor and hopefully you can add those three contracts or whatever the portion would

have been if you had taken the trade put them back on at it you know as a pyramiding type thing but because we took this up close candle out that was problematic because we had Multiple levels of sell side taken below the original sell side liquidity that was outlined in the beginning of the day on twitter so in short what should have happened was we ran the buy side here that should have been the high of the day and then it broke lower but because it took out this candle here after taking multiple levels of

cell Side what's the algorithm going to do seek by side where is it now above this high here so it's doing that run up here and then back above midnight opening handle price at opening new york local time at midnight and in the afternoon if my son has taken a trade in the morning and was profitable he'll do another Trade in the afternoon he's aiming for either 8 30 or 9 30 for his morning session move if he gets his five points at 8 30 he won't trade at 9 30. if he misses something at

8 30 he'll try at 9 30. either or he's trying to do one time in the morning now he can take a a loss at 8 30 then he can try to make it back with the 9 30 set up if he misses the 9 30 setup or takes a loss in the morning He can trade the afternoon if he makes money in the morning i tell him paper trade or demo trade the afternoon okay why why not push your edge if you have an edge ict if your son's so good and he's doing what

he's being taught to do why shouldn't he be trading every session move because i'm not teaching him to be greedy i'm teaching him Discipline because if he can see that he can make more and chooses not to do it there's a certain measure of confidence assurity contentment knowing that you can go in these markets anytime and get it and that fact that understanding that realization Is a piece of mind that keeps me from going in and over trading it keeps me from going in and doing more than it's necessary and it never allows me to

fear and keeps me from ever fearing that these things are going to stop working like i understand that i get lots of new students and they see what i'm doing and they're afraid that all these people that are following me are somehow going to break The market because they're all doing the same thing no because you're going to find setups that are going to be different than i'm entering and i can do a lot other things that aren't even in charts so i'm not worried about these things failing because i taught more people to deal

because if you look at the folks on my twitter feed that are just you know subscribing To me and they're looking at everything i say and they think that's a code word for take a butt or take a sell and that's they're rushing in to take a trade they need to be slowing down there's always going to be people out there that just because they're being exposed to this content they're not going to be disciplined enough and they're going to be people that come to this youtube channel and they are watching these videos and They're

studying the concepts and they're never going to make it work for themselves not because they don't work but because they're doing things with them in an undisciplined manner they're doing things willy-nilly they're trying to you know recreate the wheel because they want to be able to say they did something they made something they created it it's Their authorship it's their concept it's their thing their model their approach to what they learned from me because it's clout they want cloud clout is the thing everybody wants right now clicking the buttons watch my videos come to my

channel you know that type of thing attention to me and those types of people aren't going to be The successful ones the ones that don't care about being looked at or cared to be followed they're going to be probably the best out of the entire fold here because that's how it is in my private group the ones that are the most quiet they're the ones that are doing it the best they're not trying to make an image on themselves they only care about the Results and their results are significant enough for them not to look

for outward you know approval but in the afternoon what was the time i taught you in this mentorship when is the afternoon session for pm session trading in index futures after lunch but specifically what time 1 30. so at 1 30 Right here we're leaving an area of buy stocks that have been taken it's breaking down then the market returns back to a bearish breaker there then it starts to go lower we have displacement here that could have been an entry there once more low taken here and now we have wealth of equal lows they

are broken there see that this is what i'm training my son to see this is a valid setup But i'm looking for these types of things for him because look what this is this low this low and this low what's resting below that sell side liquidity on a bearish day so does it want to drive down into that it does does it create an imbalance there it does does it trade back up into it yes that's where he's going to be selling short And he's looking for his five points and then he's watching and studying

does it go to that 40-70 level that i was talking about does it go down to that daily fair value gap that i was talking about before the market opened this morning and those things will deposit pseudo experience that over time results into real experience and then he can lean on those instances of experience where he's been Here before he's not intimidated if he's done it wrong he's not fearful that the market's changing the way it does things because he's now suddenly profitable and it has a you know series of losing trades or whatever he's

not losing his mind because he has taken a trade that he felt was lined with likelihood and Probabilities in his favor but then failed he's not discouraged by that because he knows that these things repeat so best case scenario there's three opportunities for him a day he's looking for just one of them to yield five points if he does He makes more than half of his weekly salary on that one trade he's trying to do that once in the morning once in the afternoon he's taking a live trade in one or the other but once

he gets one live trade he's trying to condition himself to do demo or he'll paper trade it whatever just watch it observe but he's not trying to Do three trades a day initially i forced him into doing that i said take a trade in the morning take a trade in 8 30 take a trade at 9 30 take a trade at the afternoon and then take and also sometimes at three o'clock to four o'clock that market on closed macro that runs by the algorithm there's a little setup that forms most days of the week in

that last hour it looks similar to this It might be a buy day it might be a buy setup not just a short setup but i'm taking you into specific times of the day time i'm taking him to the market at these times okay if you have not been paying attention this video i've literally laid in your lap the very moments that these setups are forming it's up to you to go through your charts And find out if that is true the lazy won't do it they want to be told what to do they don't

want to go in and roll their sleeves up and find it but once you see this once you see it and you back test and you pull out with example after example after example of how the market sets up like this and it runs to liquidity above or below the marketplace Count how many times over the last month three weeks two weeks one week how many setups offered five points with something just like this at these key times of the day and then do the math if you could just do one half of that or

just one quarter of that with one mini it's real easy to see how It's just a matter of time before that thing you call a job no longer is a hindrance to you because it is a hindrance to you where you have your faith chained to their bosses generosity they're so generous that they make you work those 40 hours sometimes more to get that paycheck that uncle sam gets the tax before you touch it And you come out and find out that everything's much more expensive today when you have this skill set folks i want

you to understand what i'm about to say and i'm going to close this video when you learn this skill set it removes fear it removes fear of missing out it removes the fear and anxiety of failing but it also removes the fear Of inflation because this skill set will always outpace inflation i don't care if gas is 20 dollars a gallon i'm sure i'm gonna drive my corvettes i have eight cylinder corvettes that i absolutely will not leave parked i will drive them and i will enjoy them i don't care gas can be whatever it

wants to be it's a write-off for me okay I don't care how much food is going to cost i hope i i can continuously find it but i'm not worried about what my utility bills are going to cost i don't worry about what things are going to cost that skill set that you're learning here it aids in that it helps in that notice i'm not promising you get rich notice i haven't said that because i don't want you coming to my Channel thinking i'm promising you to get rich but i am promising you a skill

set that offers the opportunity to do limitless limitless feats and wonders and it's only limited by your imagination how much work you're going to put into it how much work have you put into it who are you allowing to influence you and discourage you distract you Are you seeing results am i proving this stuff works do you feel scammed or do you feel energized and thankful that you're part of a community like we have here that's thriving it's energetic they're happy they're uplifted they encourage one another and everyone here knows that they're not being taken

for a ride There's no upsell coming doesn't that feel good it frees you up to just concentrate on learning there's no angle there's no sales pitch coming isn't that awesome isn't that cool that's like the the point is is you're you're in a community that we're all trying to help one another And all i'm trying to be is the captain of the team and just lead you in the right direction and hopefully avoid the pain and struggles that i went through real accounts real money real buttons are being pushed you are going to find that

there is a lot of opportunity that you're going to let slip by and not be upset about it it's going to be one of the most fun experience that you're going to have as a Developing and developed student of price action under me is you'll see so many setups you're like i could do this trigger now but i'm not going to and then walk away from after it comes to fruition thinking i could have done that and i had the discipline to say no because i'm not being influenced by fear or greed And when you're

at that level and you're consistent you have graduated you are an independent thinker you have mastered fear and greed you have operated with a level of discipline that is unknown to majority of traders on youtube instagram facebook wherever that day is coming for you but you got to go through this stuff Here to get to it it's not hiding from you i'm not making it hard for you i've literally taught you everything except for money management which we'll talk about next week and then you have the complete understanding of what it is you're doing here

and you're just gonna do the same thing every day sometimes you'll get it right some days You won't when you get it wrong you stop you don't rush to get it back you're gonna find the next day sometimes there it is which he took as a loss the previous day comes back sometimes with interest and that's a good feeling when it happens it's like well you know i don't need to worry about it you know losing trades is like getting a flat tire it sucks it costs you a little bit of Money and time delays

you from what you're trying to get to and accomplish but it's just a speed bump cost a little bit of time and money but it didn't keep you from getting where you're going it just created a detour a delay but the inevitable happens still nonetheless you arrive at your destination your destination here is Excellence and you don't get there overnight you get there gradually one step in front of the other a little bit here a little bit there sometimes you have to take a step or two back get your footing again and resume going forward

and sometimes you'll have to take a detour once in a while that's all part of it that's the that's the growth that every trader goes through But when it gets hard for you when you feel like you want to quit that's a moment when you need to take a break take a week off don't watch my videos they'll be here i'm not taking my videos down take a week away from it enjoy another hobby and then come back to it fresh you want this to be enjoyable you do not want to make it i have

to do this it must work i got to get out of my job Right now because this is going to make it harder and longer for you to learn it have fun with it enjoy it i have to ask a question here and then obviously by the number of comments in either support of it or there's no interest in it whatever but if you'd be so kind to let me know in the comments section if you would like to see me do a very short i'm talking like Two minute three minute review each day where

the setups were for the s p and or nasdaq i'm not going to do both of because it takes too much time to do that but where were there setups for you to engage with what i'm teaching you here in this mentorship if you'd like to see that as a monday through friday short little upload Just let me know in the comment section below also if you could include also what your experience has been so far under my teachings on this youtube channel has it been a positive experience for you has it been not so

much of a impact on you or has it been just simply waffle maybe i'm you know missing the mark entirely be honest with me but just be respectful if if it hasn't been your cup of tea yeah you can respectfully Tell me that and that's okay i'll just use your feedback to hopefully try to dig in a little bit deeper and and maybe i can find something that helps you or maybe not i don't know but i'm looking for feedback and that way you can help me in that regard in the comment section below and

until i talk to you next time lord willing on tuesday enjoy your weekend and be safe