Transcript for:
Po3 Market Profile Narratives

Welcome back to another YouTube video. Today we're going to be talking about market profiles. This is the prerequisite into finding an entry model. It's one of the most important things that you have to base your trading around before you look to get into the markets. If you don't do this, you cannot be a statistically disciplined trader. It's just gambling without profiles. This is not the most important thing as psychology and discipline is because regardless of what model you have, if you don't follow it, it's not going to work. But profiles is one of the most important things in trading. I'm going to explain it to you today. Primarily, we're going to be focusing on a profile called the power of three. Now, a lot of you guys know what that is already, but you don't actually know how to use it properly. And once you do, it's that aha moment in trading that I use Power of Three to get my most recent payout of $41,000 US or $57,000 Canadian. And I will pop it up on the screen right here for some proof. But this is one of the most important models profiles in trading. and you guys really need to study more about it. So, I'm going to use Friday's crash as an example. You know, you can say, "Oh, Ben, that's hindsight." I'll show you other examples. You can look in the markets yourself, but every single move, if it's lethargic or not, is going to be using the law of the power of three. What is the power of three? Before I explain it to you in trading terms, it's accumulation manipulation distribution. You look at it as a wave in the ocean. You know, when a tsunami comes or a regular wave, the ocean pulls back, it pulls up, and it crashes down, right? So, you're accumulating the wave, you're manipulating it up, and you're crashing it down. So, it needs to accumulate orders. It needs to get volume. And to do that, it consolidates it. It It just bulks up and creates a position. it needs to manipulate to build up the distribution to get ready to crash down because the wave can't crash down if it doesn't go up first. Doesn't that sound familiar? The market can't crash if it doesn't go up first. The market can't go up if it doesn't crash first. So, every move of manipulation engineers the distribution. So, using that logic, you can see that we have it's not accumulation manipulation distribution. It's accumulation manipulation equals distribution. Accumulation plus manipulation equals distribution. So what can you learn from that? What you can you take away from that knowledge into the markets. Well, using accumulation plus manipulation equals distribution. That means that there's got to be some indication. Sorry, I'm out of breath. There's got to be some indication in the accumulation of manipulation to indicate that we're going to distribute. Now, I said that probably like 15 times, and you're probably tired of hearing me say it, but you really got to study this because it it helps a lot. Now, a lot of traders, they base their trading off of the simple 2022 entry model. Everybody goes like this. They look for the market structure shift, fair value gap, and turn down lower. Price did this before. So, they're trying to anticipate a reversal at this key level right here. Now everything is fractal. You have to look at the higher time frame because what looks like this on the lower time frame could look like that on the higher time frame. So you want to look at the higher time frame. If you're anticipating a reversal, that means you need to have the higher time frame to add up into play. Either the higher time frame needs to be in low resistance liquidity run and it started manipulating in the early morning and you want to catch the reversal of this manipulation or the higher time frame is also reversing. In that case, you would want a bigger market structure shift than just a lower time frame one because it's also the higher time frame reversing. So the higher time frame is a very important factor that I explained in other videos that you need to put into your trading model. But the mistake where we get in where beginner traders come in and the biggest mistake that they make is they look for this setup here blindly. They see a market structure shift fair value gap and they just jump into the trade. Now it could be the high of the market jumping into the trade. So we don't know but you can see here before the crash what do we have right? What do we have? We'll mar it from these lows to these highs. What do we have here? Accumulation of orders. It consolidated. What do we have here? Right before the crash we rip up higher taking buy side liquidity. So accumulation manipulation. And then next is the distribution 4.35% below of the NASDAQ. Now, I'm not saying it's always going to move that much, but in the markets, it moves by accumulation, manipulation, distribution. Even to the little setups, price action will accumulate, manipulate, and distribute. Now, a lot of the times it's easier to catch manipulation and then distribution. And it's hard to see accumulation first because it can look messy. Like if you look at this picture, where can you find accumulation, manipulation, distribution? It's not a pattern that we trade. It's a logic that we trade. So you look here and you see price action is tight. The bodies are staying relatively close. We see this big candle, but then it goes back to consolidating a little bit. We move up, then it goes back to consolidating a little bit. And there's a common denominator. There's a common factor in this consolidation. If your higher time frame is bullish, take looking for those highs. You see that in all those consolidations, every time it taps a specific level, it reverses, right? That level is an inefficiency in previous manipulation here. Now, I have a lot of annotations on the chart, but what I'm paying attention to here is you cannot identify if it's going to be manipulation or if it's distribution if you don't have a higher time frame understanding. So, before looking for anything, we know that this is our target. Doing that, we are going to anticipate that we want to see a bearish [Music] So doing that, we want to anticipate that we're going to see a bearish manipulation below lows, right? So, you can see there's a common point here where price action just is jumping off. You see, it goes down, jumps up, goes down, jumps up. Now, here at what time? 10:00 a.m., which is a key time. Time is a indication. It's an indicator on when to tell manipulation is going to happen cuz manipulation needs volatility. When you rip lower fast at a specific time in the day, like 9:30 or 10:00 a.m., and it takes a form of liquidity in the opposite direction of your higher time frame bias, that is what we call manipulation. So, let's say this is your draw on liquidity up here. When a specific time comes and price goes like this really fast, it could be one of two things. One, accumulation, manipulation, distribution. We continue a lot down lower, right? Trading to a high time frame right here. Or two, accumulation, manipulation, distribution. And now you're going to be like, how how do I know this, Ben? How do I identify which one it is? Because there's always a reason to be long and short. That's why I say it is gambling if you don't use narrative. if you don't use higher time frame profiles because you're taking a 50/50 on if it's going to be this one or that one. And that's where higher time frame comes into play. If you're in a higher time frame bullish profile and you do this, what are the odds that you're going to go like that next? They're higher. They're higher than going deeper because this leg is this leg on the lower time frame. If it decided to go even lower, then that leg would have turned into this. And that's trading into a discount, trading way past high bullish PD rates on the higher time frame. That means you're probably reversing. So when you're in this profile, you want to anticipate power of three to be the last leg of manipulation and then we move up bullishly. Now, what are the higher time frame profiles I'm talking about and how do I factor them into my lower time frame trading? Well, this is where the the video gets really important and where you will learn a lot. There's a few profiles I look at. There's low resistance liquidity run when price action is just ripping. It could be vice versa bearishly. There's the power of three or we can just talk about a reversal where we go like this, we manipulate and then we distribute back up towards the highs. That could be a high. These are all higher time frame profiles. And then there's accumulation, expansion, retracement, expansion. When you're trading this one, you want to look for IOD, institutional orderflow entry drill. If you don't know what that is, go watch a video on it. Once you know what it is and you heard what I just said, you're going to be like, whoa. When you're in a continuation, you want to use IOFed because you're not anticipating a deep retracement. You're anticipating price to just go boop boop boop. So, you want to find the distribution leg of the higher time frame, then turn up. Now, if this is the higher higher time frame like the 4 hour to the daily, then you can look for any profile on the lower time frame because it has time to do it. But you still ideally want to catch IOD on low resistance liquidity run. So, this profile is for IOD. This profile accumulation expansion retracement expansion is for a few entry models. One you can use IOD for on the expansion legs here and here or you can use OT consolidation expansion. When we have an expansion instead of manipulation outside of consolidation what is likely to happen? What does ICT say is going to happen? It's going to retest that consolidation because what is this right? What is this market maker buy model? And what does ICT say happen in a market maker buy model? It will do the second stage accumulation to retest the consolidation. So when price action is in a market maker buy model, you're not going to anticipate this profile, the power of three. You're going to anticipate an expansion, a retracement, and an expansion again instead of an expa uh consolidation, then move down lower again, then up because that's not a market maker profile. You don't see that, right? So, this factors into a market maker buy model, which is even higher profile. You can use OT to the consolidation, right? Wait for it to go to the OT level. If you miss that, you can use IOD and the two distribution legs that we have here, right? Or you can take a turtle soup away from the drawn liquidity. That's if you're ambitious. I don't like taking turtle soups in this. Now then there's power of three. Power of three is the most important profile out of all them. And why do I say that? Because it factors everything. If you take turtle soup entries, you can wait for 9:30 to swing the consolidation lows. Take the turtle soup and target the highs. Boom. Okay. If you take the 2022 entry model, you can wait for a reversal down in this manipulation like to the highs. Boom. Okay. If you take IOD, you can wait till we break above the consolidation or near it to break structure at below it in a discount and look for institutional orderflow entry drill in this distribution. Like boom, another entry. The power of three is the fundamental of all of these profiles because the power of three IOD the low resistance liquidity run is the distribution leg of power three. The consolidation, expansion, retracement, expansion is also usually in the distribution leg of the power of three. Okay, so you look at the market maker buy model, right? You start there, smart money reversal, consolidation, back up. That's not where it stops. That's where it breaks into a premium. Then it will continue like this. What does that look like to you? Consolidation, manipulation, distribution. Where do you find this profile? Here, here, here, all the way. How do you find high probabilities of this profile? Get your fib. Find your premium discount. Here are your two higher probabilities. So, everything factors into a profile in the markets. That is what is so important is factoring your trading into a profile. If you just get into the markets blindly and say, "Okay, I'm going to wait for a market structure shift in a sweep of liquidity." You're not doing trading. You're sitting there and you're waiting for lowhanging fruit that is the devil's fruit. You're going to take a bite of it. It's going to be rotten because it's a fake out because there's so many fake setups. Okay? Why do I say that? You're in accumulation manipulation distribution. Sometimes it's not that clean. Sometimes price action will go like this. And if you were just cherrypicking setups, you'd be like, "Oh, okay. Accumulation manipulation. This is going to be distribution. So, we manipulated a higher time for PDR. I'll take a short here." And then boom, it goes back up because you have no narrative. So, your successful short turned into a loss because you didn't know where you were going, right? You did get a sweep in liquidity. You get did get a trade into a higher time frame fair value gap. And you did get a break of structure. But your entry is not going to work because it's not in the right narrative. How many times have you seen this on price action? And this is going to wake you up because no one really talks about this. How many times have you seen price action do this high, low, higher, high, lower, low, market structure shift. How many times have you seen that? It's a market goes back up. This is what we call a fake market structure shift. If you're a pattern trader, if you're a trader that just waits for a setup, you're taking the short any day of the week and you're losing. This can be in those profiles and you won't take that if you know what profile you're in. See why trading a profile is so important? Now, I'm going to go back to the charts. I did not study anything. I did not study anything. I'm just going to what I'm going to see in hindsight. I didn't mark any time down or any specific day to show you guys. But you can see that price action also manipulated a little bit lower. And a lot of people were in longs. They were in longs, right? They were in longs here. Oh, breaking structure. Look, accumulation, manipulation, distribution. Oh, breakage structure. Get into long. They lose their whole account, right? Let me tell you this. What time does this manipulation happen at? 6 a.m. That's not really relevant. What time does this one? 9:30. It happens at 9:30. 6 a.m. 9:30. So why is time relevant in the power of three? Because the market is not accumulating. It's not creating orders. It's not manipulating orders at 2 in the morning. It's accumulating orders throughout the AM early AM session. It's manipulating right at the heart of New York open when the most volatility is and then it's distributing at around 10:00 a.m. You see throughout the morning we had the smaller price action. We were accumulating. Okay, including this. We were accumulating at 9:30 the heart of the open when most people are getting in. It manipulates buyers and then at 10:45 in that 10 a.m. range we distribute. Now, it's not always at that time. Sometimes you'll see the distribution happen at London session. What does that mean? Think about this. I'm about to drop a bomb on you guys and then I'm going to wrap up the video. Think about this. When London distributes, when London rips towards your target, what do you do? You don't trade New York session. Why? Why, Ben? What comes after distribution accumulation? How do you save yourself from blowing your accounts? Not trading seek and destroy days. How do you identify seek and destroy days? Seeing what profile you're in. If Asian session distributed and London accumulated, that means New York AM session is going to be manipulation and you're going to get a PM reversal. If London distributed, that means AM and PM is most likely going to be seek and destroy. You don't you won't know these things if you don't factor in a profile in your trading. So to really understand a good fundamental basis in trading, you need to understand what is your high time frame profile, what is your target, where are you going, why are you going, what stage in the power of three are you in. Once you can identify what stage you're in, once you see that very fast move in the opposite direction of your bias, that gives you so much clarity in your bias and knowing and confidence to take your trade. So, there's other entries and other videos I'll talk about, but this is this was a banger. And if you know what you're actually getting right now, you would be journaling and you'd be like, "Wow." And if you didn't understand it, watch it again because this is this is what got me my payouts. This is what got me my payouts. other than being disciplined and having proper psychology because regardless of how many profiles you use, regardless of how good of a price action you are, reader at price action you are, regardless of what you do, if you can't stick to your rules, you can't win. So, that's pretty much it for this video. I hope you guys enjoyed it. Thank you guys for watching and I will be live on Tuesday. Monday, Monday is a holiday, I believe, so I won't be live on Monday, but I will be live on Tuesday. uh am session, amm session, am on YouTube, PM on Tik Tok. Also, big deal ending soon. Code Ben 80% off all Apex evaluations and an $85 activation fee instead of 200. If you want to also help support me so I can keep doing what I do for free, make sure to use code Ben for Apex Trader funding. Other than that, fellas, thank you guys for watching and I'll see you guys in the next one. Take care and peace.