Introduction to Optimal Trade Entry by Inner Circle Trader

okay folks welcome this is going to be the first video I do uh as a beginning or a point of origin if you want to call it that for my continuing series on the YouTube channel Inner Circle Trader so there&#39;s going to be a daily uh entry in terms of the YouTube channel will have a Monday through Friday video log so there&#39;ll be something posted and uh in October 2017 I&#39;m going to be doing a New York session live commentary so I&#39;ll be talking about uh one particular pair per day based on uh my own personal choice and selection it doesn&#39;t mean there&#39;s going to be a setup uh that comes to fruition every single day just means I&#39;m going to give you an example focusing on one particular pair and using that as a foundation and understanding your in learning price action so the first thing I want to kind of like bring the focus to is why everyone starts trading obviously they want to make money okay number one I&#39;m not promising you that okay cuz no one can the only thing I can tell you is this is a particular pattern that I first discovered in price action and it was very easy to spot it was very easy to see and understood the mechanics uh rather quickly and I think uh from everyone I&#39;ve ever taught this is the one pattern that uh most gravitate towards there&#39;s a lot of different trading patterns out there especially in my personal repertoire but truth be told I only have really two setups I look at and I&#39;m not going to give you those particular setups here but I&#39;m going to be teaching you the generic optimal trade entry from a foundational standpoint or Bare Basics approach to it now right away much like everyone else has already gone through my uh free tutorials they either dismissed it as well well you know it&#39;s too easy it&#39;s too simple trading can&#39;t be that easy um and no trading isn&#39;t technically easy quote unquote um makes it difficult is is you have to measure the amount of risk involved for every setup and then you have to stick to a trading plan that you know follows that setup and even that doesn&#39;t guarantee you&#39;re going to make money so the only thing I&#39;m guaranteeing you here is a solid understanding of what I see in terms of price action as it relates to Optimal trade entry or as it&#39;s themed on the internet and in my own tutorials OT okay just abbreviation for optimal trade entry all right so uh the first idea is number one before we do anything I kind of like want to remind you all that I did a lecture uh years and years ago about how your trading plan as many as some might feel that it&#39;s necessary to have you know 14 page uh you know treaty on uh what it is you&#39;re going to do I think personally once understand the mechanics of it all and what you&#39;re doing conceptually it only needs to be enough to fill the back of a business card okay so you need a short little list of things that you know by heart uh what&#39;s your risk model how to frame that uh what makes your entry uh what gives you the conditions in the marketplace that makes you bullish or bearish and you know how do you execute and how you manage that trade and then you obviously you know where do you take your profits at so obviously it&#39;s a very oversimplification on my part admittedly I understand that but uh my return back to online uh I guess tutelage and uh teaching is really kind of like bring it back in the scope of simplification because I have a lot of things that I&#39;ve taught everyone about trading every asset class specifically Forex the common consensus is is because everyone&#39;s tried to learn everything I taught and theyed triy to apply it to every possible scenario in every particular uh trading day that they have time to sit in front of the charts it doesn&#39;t promote uh you know a solid understanding in fact it creates kind of like a paralysis effect so what happens is everyone quickly walks away from the material thinking well number one he&#39;s just a demo guy because you can&#39;t do it or because I haven&#39;t showed a track record and it&#39;s always been about you not about me so if you take this information use it I promise you you will have a greater understanding about price action than you have right now that&#39;s the only thing I can promise now does that mean you&#39;re going to making be making any money no I can&#39;t promise that okay so everything I talk about is going to be referred to as a hypothetical scenario because I&#39;m not trying to take ownership of the risk and rewards that you take in using this information so just understand that a it&#39;s for informational purposes only but I think if you look at it you&#39;ll quickly see that there&#39;s something uh of worth in terms of studying so the first thing we&#39;re going to look at is understanding what makes the market uh predisposed to go higher or lower now if you recall for those that have had that benefit of going through my old tutorials I had a teaching on uh selecting key support and resistance levels and it&#39;s primarily just working from a higher time frame monthly down into the lower time frame so when I say lower time frame that would be about uh the four hour is the lowest I&#39;d go in terms of defining it as a key anything less than four hours is too short term to uh refine that on a large institutional uh basis so what I like to look for is and what I taught on the fre tutorials is that if you use the higher time frame monthly weekly daily and 4 hour and we&#39;ll just leave the 4 Hour offer right now just focus on the monthly daily and weekly time frames if you look for key levels where price has moved away from it in other words if price has moved up to a resistance level and repelled and went lower we can reasonably assume that there was a large degree of Institutions that had a interest in being short there and if the market trades down to a level and bounces off of it and goes higher we can reasonbly assume that there is an Institutional uh basis for that rally to ensue now without going into great detail and revisiting everything I&#39;ve ever done and trying to compressing into a very short video just know that that simple premise of using a higher time frame chart and you use a monthly chart there&#39;s plenty of high probability scenarios that you could find just using a monthly chart now you don&#39;t get a whole lot of setups but if you&#39;re watching a a wide array of particular assets there&#39;s always something trading at or near a monthly level okay and what&#39;s a monthly level an old high an old low as simple as that now everything I&#39;m going to be teaching and revisiting in the YouTube channel is all about simplification very simple processes simple ideas no indicators no gimmicks none of those types of things you don&#39;t need all that stuff very simple understand of price action the premise behind what makes these things strong is we&#39;re looking for the evidence that there&#39;s going to be a institutional sponsorship behind the price move that means big entities Deep Pockets lots of orders coming in large sizable orders are coming in we&#39;re not looking at we&#39;re not looking at little tiny little fluctuations of intraday volatility we&#39;re looking at big massive telltale signs that these big boys have pushed price around and you can see that on the higher time frame I&#39;ve said this so many times if folks would just focus on these time frames it will answer 80% of the problems you&#39;re having because you&#39;re too worried about what&#39;s going on in these lower time frames because you&#39;re in you enamored by something maybe I&#39;ve done with an intraday chart 5 minute 15 minutes something that or even one minute charts you get on social media everybody&#39;s a wizard now you they&#39;re showing all kinds of things that they&#39;ve either done or can do and that&#39;s great but one minute charts are not going to decipher what smart money&#39;s doing that&#39;s just very short-term volatility now I&#39;m not disparaging the ability to make money doing that because I can do it just like just as well as the next guy can but what I really want to focus my time on and this is what I taught from 2010 as it relates just to Forex but it really goes across all asset classes if you use the higher time frames on any asset class that you&#39;re looking to speculate in or study that is where the big money moves are it&#39;s as simple as that it doesn&#39;t get any pler than that okay so we&#39;re going to assume for a moment that we ass you assume that the Market&#39;s bullish okay and we would be looking for the market to trade higher optimal trade entry is really based on buying retracements okay as the market makes a impulse price move higher uh that impulse price move has to be incorporating a a break in Market structure and I&#39;ll show you what that looks like in the chart and then you&#39;re what you&#39;re doing is you&#39;re trying to buy the retracements lower and obviously it&#39;s very cliche to here in technical analysis buy the dips sell the rallies okay if you&#39;re if you&#39;re bullish you&#39;re going to be buying the dips or any retracements lower after a price leg higher and then the expectation is you&#39;re buying it when it retraces and then you want to buy it as it does that and then capture the next leg higher and everything&#39;s reversed for when it&#39;s bearish we&#39;d be looking for uh rallies in price and we looking to sell those rallies with the expectation that we&#39;re going to break to lower lows okay and that&#39;s the optimal trade entry short and uh optimal trade entry long in a bare definition simple definition so what it looks like is on a fib this is the basic model uh there&#39;s been many approaches to having uh the Fibonacci show what I use for optimal trade entry but this is the bare bones this is how it started this is how it is and I&#39;ll show you what these settings are let&#39;s go over here and click on and I&#39;ll let you see the settings that way you can set your mt4 or equivalent to the same uh the zero level is first profit and scaling I&#39;ll explain these as I go um 62% retracement level I&#39;m rounding it um and then you have the 100 level which is one here and then we have the percent sign dollar sign just allows the mt4 platform to plot the actual value you can see that over here and then it&#39;s 705 for the sweet spot for optimal TR entry that&#39;s the price level I&#39;d like to see price trade too and 79% and we have our Target levels which is 0 negative 0.62 negative 027 and then negative one for a symmetrical price swing okay and then the same as this you know done over here I don&#39;t need to show you the uh property settings for that it&#39;s the same thing just shown in a scale of looking for downside objectives so the premise is we&#39; be looking for price to do something like this okay we have a impulse price leg higher and then we have another impulse price leg off that level and trading down into optimal trade entry okay so what we&#39;re trying to do is get below halfway of that price leg higher down into 62 70 and a half to 79% retracement level okay I try to get my fill at 62 just everyone knows right away it&#39;s for completeness sake I try to get at or very close to the 62% retracement level I allow up to a little small deviation below the 79% TR level to 80 okay I allow that for price now my stop will be exactly at this low not 10 Pips or five Pips below that it&#39;s going to be right at that low okay so it&#39;s easily defined if we were trying to get in at uh 62% Trac level it&#39; be my fill would be one um sorry 1234 uh3 what&#39;s call it this is the gold market uh all this stuff it&#39;s just that&#39;s the price it&#39;s showing uh I&#39;d look to get um Phill at basically uh 1235 we&#39;ll call it okay just a little bit about 62 I&#39;m not going to fancy dance around try to get the actual uh level I just want to be in a level to make sense okay and then between that and where I think um the low should be formed based on my um analysis where the price would be terms for the price swing I&#39;ll show you what that looks like in the chart uh the stop would be exactly right there so between the two reference points uh that would be the risk okay uh the level up here zero level is when you take off first profit now I like to go a little bit early because it could always fail getting back to this high so at that high or just below it that&#39;s where my first profit is that&#39;s your first scaling that&#39;s not your first Target first Target is here okay so you got to expect price to want to event get to this level or maybe this level if you&#39;re really extremely bullish all the way up here to have a measured move what&#39;s a measured move the impulse leg low to high that move is the same thing just added to the high up okay so that&#39;s a a perfectly symetrical price swing they don&#39;t always happen to that degree and that&#39;s why we have to be looking to take profit right before our old high cuz it could fail there and if it goes above it at the 127 uh extension basically is what this is I&#39;m going to be looking to take something off there and if we get to uh 60 2 extension up here I would be another portion for me to uh take profits and then if I&#39;m extremely bullish I&#39;ll leave a small piece on for a measured move type effect so the same thing is seen over here for when the Market&#39;s bearish we look for an Impulse leg lower in price okay and then we expect to see price retrace higher back into optimal trade entry and that&#39;s defined between 62 and 79 cration LEL it could be anywhere in here now the problem is I&#39;m not teaching supply and demand so supply and demand zones and stuff like that I don&#39;t do those types of things I look for specific price levels and I&#39;ll teach you through the month of October how to refine that down to a specific price level and not just wonder you know where it is in that zone that you&#39;re going to be taking a trade at okay so I&#39;m going to give actual price levels to look for and the same thing we would expect the price to show willingness to drop lower limiting our risk to the actual High between the entry and the high that&#39;s our risk so we would take that amount of risk Define divide it by uh you know the percent risk that we&#39;re willing to uh assume based on our account we&#39;ll say it&#39;s a half a percent uh whatever half percent of your account is uh you you take that in terms of the Pips and break that down and that would give you your per pip uh leverage and I know something I&#39;m I&#39;m brushing over that rather uh quickly and it&#39;s because I&#39;m trying to just give you a foundation and then obviously through the entire scope of October we&#39;ll actually refine that so you can see how to do your risk how to determine your risk and figure out what you can earn on the position and what you&#39;re you&#39;re risking and I&#39;ll teach you how to move all the stops when when it&#39;s supposed to be done and all that but ultimately we would expect to see it then move down into some reasonable objective first profit would be down here but just above the old low so we will un take profit here the thing is this is what why most Traders screw up and they don&#39;t make money and they&#39;re not profitable either in demo or in live is they don&#39;t do this practice right here knowing where to get out it&#39;s a first scale you have to know what that is and it has to be a reasonable amount of range to promote the idea of justification for the risk so if I know I&#39;m getting in here and my ENT exit a loss is up here with my stop it has to be a reasonable you know better than in my opinion better than two to one okay and that&#39;s about as good as I get in terms of trusting reward to risk ratios okay so what I&#39;m looking for is everyone will look at this way they&#39;ll say okay I&#39;m I&#39;m trading here at a short and my risk is here so that&#39;s uh my risk okay whatever that multiple is then they start doing this it&#39;s okay for if I get short from that point there&#39;s one R there&#39;s two R there&#39;s three R there&#39;s four R I think that&#39;s flawed okay and that&#39;s the reason why I make fun of folks when they want to talk about risk reward models uh it really should be done on first scaling okay so if I&#39;m getting here as an entry and my risk is here it needs to be enough of the position coming off that promotes at least two to one so if this is one R in terms of the risk whatever that is I have to be able to make two times that in my first profit that&#39;s what I&#39;m trying to shoot for now sometimes I&#39;ll take trades that are just slightly underneath two might be like one and 3/4 okay if I&#39;m really really aggressive and I&#39;m I&#39;m just in a fast market and uh we&#39;re not even a fast Market I should say it like this if I&#39;m in a market that is indecisive but I&#39;m already in the position so I&#39;m managing it um I&#39;ll I&#39;ll look to take out one and a half% but I&#39;m really looking for trades that&#39;ll frame a model that&#39;ll give me around two okay so whatever my risk is from here to here I want two times that from my entry to First profit okay and that&#39;s why I want to get as deep as I can you know into that 70.5 level I&#39;m not going to demand 79% trades level I&#39;m going to be looking for the 70.5 preferably to give me my entry at 62 so that&#39;s what I&#39;m looking for so not all trade scenarios are going to give me this gearing but the ones that do they&#39;re the ones I&#39;m going to take okay and obviously it&#39;s not as good if it&#39;s on like a one minute or five minute chart because the range is going to be very very small the setups that are on like an hourly chart they&#39;re good because it&#39;ll give me enough of a range to get close to that two: one reward the risk and if I get that everything past that first uh scaling out takes care of itself and that&#39;s why it&#39;s I laugh when I hear folks saying it&#39;s stupid to take first uh profit or scaling out profits because your initial risk is X and then you you&#39;ve taken a small profit yada yada y well it&#39;s because I&#39;m looking for these objectives down here and it takes care of itself okay and it ends up becoming my last portion ends up being way more generally than what I did in my first uh scaling so it it&#39;s it&#39;s not it&#39;s not an issue for me to be worrying about and if you see examples of it you know going forward you&#39;ll you&#39;ll see quickly there&#39;s no reason to be thinking it&#39;s uh a bad idea actually so let&#39;s go over to the charts and I&#39;ll give you some examples of how quickly and easily you can find these setups and we&#39;ll give you all kinds of examples of it going forward in October okay we&#39;re over here at trading View and admittedly I&#39;m a little clumsy when it comes to this platform I&#39;ve not been active in using it but I&#39;ve been practicing with it so that way I can use it as our medium for our teachings so I want to kind of like draw your attention to how price on the euro dollar this is a weekly time frame and price in recent weeks have pushed above these old highs over here okay so if we did this on a monthly scale and let&#39;s do it just for completeness sake okay you can see this High here me zoom in a little bit so we have this High here and this High comes in at uh 11714 okay 11714 for this particular month so what I&#39;m going to do is I&#39;m going to drop a horizontal line right on it and I&#39;m going to ask you a a question regarding pricing so if we see price trade on this particular month right here it trades Above This high right above it once we go above this old high just think in terms of simple support and resistance folks it&#39;s not complicated when price is above it whatever that price level is and we&#39;re we&#39;ve already assumed um not assume we&#39;ve had figured out that it was 11714 the markets trade in an algorithmic U format okay there&#39;s price engines that generate uh you know runs on pricing and runs on stops and there&#39;s accelerations in price and where delivery skips and jumps to specific areas in uh pricing the easiest way to understand what that is is if you look at a chart you can do it like on an hourly chart or 15 came that time frame you can see it on all time frames but really 15 in 1 minute if you do it over the course of a week you&#39;ll see how price gravitates from a full figure okay and that would be an example of like 1170 to 1180 that would be a full Penny move in the euro dollar that one penny move is broken down algorithmically to the 11780 level 11750 level or mid figure 11720 level and then we have 117 big figure okay so my question to you is this if price traces above it this old high back here because we broke through that this low this High I&#39;m sorry this high is 1714 so from an algorithmic standpoint what price level would it want to reach back down into if it&#39;s going to go down for support 117 20 because it&#39;s just above the 11714 right so if this high would have been 117 say 65 what would the level be that would You&#39; expect to see it reach down into for an algorithmic support level 11750 mid figure okay so think in terms of that okay and what this does is it eliminates all this distraction okay looking at ladders and depth of market and all those types of things you can probably swear by it and tell me you&#39;ve done really really well and that&#39;s great just like anybody else using Crossovers and macd they can tell me they&#39;ve done really well with that too I&#39;m not telling you that you can&#39;t make money doing that kind of stuff I&#39;m just simply suggesting to you there&#39;s a much easier approach to doing this than everyone&#39;s doing so we&#39;re using an old high here and while the level is 11714 and the specific high from an algorithmic standpoint we would look for sensitivity or support to form around or at 11720 okay so we&#39;re going to leave the level here and we&#39;re going to drop down into a daily okay so we have the 14 11714 level on our charts and now I&#39;m going to ask you to consider what is going on in reference to the institutional level from an algorithmic standpoint in other words we looked at our pricing model it&#39;s full figure above it the 20 Level above that mid fig 50 above that the 80 level institutional and then we have the next full figure okay or 118 so if we&#39;re above price when it trades above it here we expect to see price find support when it comes back down into the 20 Level okay so now we can adjust this level here and show at 11720 okay so 11720 is the institutional price level from my algorithm standpoint price is going to want to trade back down to that level the reason why it does that is it allows the market to pick up orders at just below or above that level okay there&#39;s limit orders there there&#39;s uh there&#39;s stops there but generally it&#39;s coming down the Run stops to pair the orders with smart money&#39;s limit orders okay every time you see my chart below the market I&#39;m always referring to it as running sell stops above the market I&#39;m always referring to it as running buy stops those that are not in the know they will question whether or not I&#39;m using the right uh uh definition I am using the right definition because I&#39;m looking at things from an Institutional standpoint those uh sell stops that are below the marketplace smart money will have their buy limits to pair up with those sell stops okay so my perspective is not retail so I&#39;m looking at it from an Institutional standpoint from where I&#39;m from I don&#39;t look at it retail so if we understand that the a market is above this 20 Level when it trades down into it we should see the market trade into a support level that support level is going to be defined by some pricing model and I just gave you one it&#39;s very simple uh we used the old monthly high and we&#39;re finding support we want to see price trade off of that and give us a pattern so now we have a level it&#39;s been rounded to an Institutional level 20 1720 and now we can drop down into lower time frame charts and we&#39;ll just look at a 15 minute time frame okay and then we&#39;ll okay there we are all right so we have price trading down on the 27th and hitting the 20 Level notice what it does it hits it and then rallies away that rally this is what you&#39;re looking for you want to see it take out a shortterm high that is seen here you have a short-term High it trades through it once it does that this break above that short-term high is a market structure break okay so now from an algorithmic standpoint the price will want to retrace back down once it retraces okay it&#39;s going to pick up more orders and then rally again okay we have another break Above This short-term High here and I&#39;m quite certain you guys that are more proficient with trading view you&#39;re probably smiling saying he could have done this or that and just made a copy I don&#39;t know all that yet so this give me some time so we have another break here okay so we have short-term High broken and another high broken now watch this High being higher than this one from a market structure standpoint short-term High intermediate term high so now when this breaks here we have a much more solid setup for a potential run and price higher now we have to enter the optimal trade entry because we already have a consolidation in here price trades away came came back to the consolidation distribution redistribution smart money reversal lowrisk buy and here we&#39;re looking for another area to buy okay or another area of accumulation or reaccumulation to take us Above This consolidation now what I just described to you is a market maker buy model as simple as that some of you will say oh that&#39;s wof well I kind of got the idea from looking at Price action alone and then when I saw wof describing that that the scenario it made me feel better that I seen something that someone years and years before me was able to see that same price structure but his definitions and things I don&#39;t use that there&#39;s a different uh approach in folks that went through my mentorship ship no right away and I&#39;ve challenged them as well to go through wof and see if what I was teaching was wof it&#39;s not it&#39;s very similar in terms of the General market uh profile itself because it&#39;s a it&#39;s a very generic process mark up and discount it&#39;s simple as that but the long and short is the the Run above here right there that impulse leg is all that&#39;s necessary because now we have a a uh profile or model that would take us Above This consolidation so we would look for this whole price action right in here to be traded above okay because that&#39;s where the buy stops are hitting are sitting so smart money buys down here at the 20 Level and we would know this level beforehand and it&#39;s basically uh the 11820 because Above This High uh this high would be 81.2 and obviously above 11810 the institutional level would be what 1820 and that would be where smart money would want to exit running those buy stops why do they want to run buy stops because the orders they picked up down here going long and then bought more down here they&#39;re long so they have to have people that want to buy it from them at a higher price so buy stops that would be above here why would there be buy stops there Michael because folks that are being short this is the last intermediate term high for anyone that has not Trail their stop loss lower and got stopped out they&#39;re going to make a run on that liquidity right there which is the reason why the uh Market maker buy model is so well good all right so we&#39;re going to look at this little area right in here okay and this is going to be the optimal trade entry that we&#39;re going to talk about just for tonight and let&#39;s make us a little bit bigger okay so this impulse leg ring away and then coming back down picking up more orders that&#39;s optimal trade entry that&#39;s what it looks like in price that&#39;s the uh the executable um price level you can trade on now I&#39;m going to ask you to let me go back to mt4 just for uh the the pattern take but I wanted you to see how it can be shown on a trading view it&#39;s not just simply uh an mt4 Trick Pony um it&#39;s it&#39;s there as well but I want to go over to mt4 because I&#39;m a little bit more efficient with that uh charting PL platform and then we&#39;ll go into looking at the example okay so we&#39;re over at mt4 and just kind of like redefine what we&#39;ve already discussed this is the old monthly High okay 11714 and price was coming down away from from higher levels and we had a short-term low here and we had a little bit of a rally in there and folks try to capture um old lows or try to capture U any advancement higher if they&#39;re lucky enough to get in and see a little bit of a profit they obviously fall in love with it they marry the vein the expression is and obviously their their stop would be resting below that so the market trades down into that 20 Level institutional level picks up orders right in here okay runs hits that and then rallies through breaking this short-term structure High when it does that we have a market structure break we wait for a retracement lower okay now the first time it does this you&#39;re going to maybe lose the lowrisk buy for a market maker buy model the consolidation here the run away come back to consolidation distribution smart money reversal low risk buy reaccumulation that&#39;s what we&#39;re looking for the next area of accumulation so this short-term High being broken here we mention that this is a higher high than this one so this is an intermediate term High okay uh my old tutorials uh brought out a concept I picked up from Larry Williams which is my mentor back in the 90s uh he taught Market structure and a high that has two lower highs on either side out of it it makes that high in the middle a significant high and that as it nests out it gives us a market structure model here this High being broken right there is much more convincing than this shortterm here without understanding everything I&#39;m giving you here as an outline or understanding the expectation of how orders are stacking around higher time frame key levels and understanding algorithmic price models because that&#39;s what I&#39;m teaching here tonight from a a very basic approach this is all stuff I taught in my free tutorials sniper and Precision Trading Concepts and all the other stuff in between but this rally right in here this impulse leg right there is all that we would be looking for so this move up when price trades up and creates that high what it&#39;s doing is it&#39;s making a a a more convincing run Above This high so it&#39;s a mark structure break on an inter term high so it&#39;s much much more reliable so the retracement on that is going to be much more significant so when we look at Price moves we want to look at the price move on the bodies of the candles I taught this in my tutorials the Wicks are always going to be the thinnest price action okay and if you look at everyone&#39;s price uh across all different uh platforms and uh Brokers the part that&#39;s always different that throws everyone off is the wick because the broker is allowed to have have some measure of uh flexibility I&#39;m just going to say it that&#39;s the polite way of saying it where they can spread price a little bit more so you&#39;re already getting a derivative of price from interbank feed anyway but the discrepancy between that and what you see at your broker is many times way off okay and you sign your agreement to that when you set up your account you&#39;re you&#39;re allowing that to occur okay so you can cry about it they did this to me they did that to me but you really gave them permission so it is what it is all right so this rally up we&#39;re looking at on we&#39;re going to put on the bodies of the candles up here this is the highest body right there this candle right there and we&#39;re going to look at that as the open so the open is $17.99 so that&#39;s where our FIB will be dropped right there okay and we&#39;ll let it go so now what happens is price rallies through impulse leg up and it drops back down look how nicely it gives another little uh bounce right there trades back up higher and it spends all this time on a 15-minute time frame this is going to chop Traders with no patients up they&#39;re going to get scared every time it comes down or when it starts to Rally like this they Jam their stop loss right under underneath this low here and then look what it does eventually comes out hits it you have to give the price freedom to trade from where you&#39;re trying to get in at to your stop let it go to the full stop it&#39;s there for a reason to protect you but if you don&#39;t give it room to breathe you&#39;re never going to give these mark markets uh the ample room that it needs to to gate and then expand towards your targets so the same Fibonacci settings okay nothing&#39;s different here when trades up to this price level right there or just below it there&#39;s your first profit okay so if you&#39;re trying to get in at 70 uh5 or 62% retracement level this movement here you got to see at least two of that one two okay first profit scale off put your stop to break even let it go price trades up to the first Target you can scale something off there trades to this level here you can scale something off there and trades up to symmetrical price swing boom hits that okay and then look at the reaction after that all the way back down you think that spy happen St just you know coincidence no it&#39;s going to an area of liquidity we have a bearish order block here overlaps with the target two really nice move there but look at this short-term High here what do you think is resting above that buy stops now there&#39;s going to be some out there that don&#39;t understand what I&#39;m teaching because they don&#39;t see things from an Institutional standpoint they have no idea how to look at it like this but there is Trail buy stops that don&#39;t get Trail down here not everyone carries that model where they got to jam it up seven tis you know above the recent High when they&#39;re bearish that&#39;s what retail does longer term trending models they have their stops farther back okay and this is one that would have been targeted and here&#39;s another one as well okay and it overlaps with the symmetrical price swing that we have on our fit okay which is a 100% measured move of whatever the impulse swing is this low to this body&#39;s high is the same thing from that body&#39;s High all the way up to this level it&#39;s 100% the same in term of Pips and range it&#39;s the same thing from this price point to here added to this and you get that very very precise very very uh precision based uh Trading it reaches for the 20 Level okay you can how much work there was around it near the 20 a lot of 20 20 20 so the market will gate and work around these levels here okay this is one penny move in the Euro so look at the sensitivity around the 20 Level it trades up to and consol consolidates a little bit and gets another optimal trade entry right in here from this impulse Lake up rallies again what&#39;s it doing it near the 50 level well it&#39;s not exactly at 50 Michael exactly because at these levels at 50 there&#39;s orders that are just above it or just below it or at the 50 level just like we have at the 20 Level it can be at the level 20 above the 20 a little bit or below it everyone&#39;s going to have orders that are be close proximity to these specific levels that&#39;s why the algorithm reaches for them now institutions like these levels from a generic standpoint because it makes it easy for them to price their models in we had the old high at 11714 that&#39;s an odd number so look for the manipulation here a stop run then a break in Mark structureal rally when we have that anticipate some measure of buying and then wait for the intermediate term High to be broken here you&#39;re going to lose all this there&#39;s nothing wrong with that but if you want high probability and you want confirmation and I&#39;m holding my fingers up in quotations you want confirmation this is what it looks like you got to have an intermediate term High broken Market structure and then do everything I just did here and you have a complete trading model targets how to know when to do it using a higher time frame level what to reach for well you got have to look for an old high to run through okay so if you&#39;re buying low you want to sell High how where do you sell high at just find an own high somewhere okay and do it in a scope that as we outlined here this is just one example you see many of examples of these going forward but this is just one that is a aable to you and you can see it in your own charts and study it and seek it in other pairs throughout this week that we&#39;ve had and find similar examples of this even looking for it for shorts as well but this is going to complete this first uh introduction to Optimal trade entries this your first time here uh this is what it looks like uh coming back down into it here that&#39;s the buy okay you can buy it here or here and look at the dynamic re reaction now with this like it is on the chart I&#39;m going to drop down into an hourly chart and you&#39;ll see see why I like the hourly setups because they&#39;re much cleaner a lot of noise on these lower time frames but same impulse leg here and it comes right down it&#39;s beautifully here the body is respecting the candle I&#39;m sorry the body&#39;s respecting the FIB level not that the FIB level is giving them there no magic in the FIB it&#39;s just giving a specific framework for us from the best perspective we can have not being on an interbank level uh institution where you can actually see because you&#39;re not seeing these orders folks you&#39;re not you know that&#39;s why I laugh when folks will say you know I&#39;m looking at the you know um well I said I wasn&#39;t going to do those types of things I&#39;m not going to belittle anybody else because if you&#39;re making money doing what you&#39;re doing you know God bless you uh that&#39;s why I like Forex because I understand the animal and the things that everyone hopes they can see in their little gimmicks and their indicators that&#39;s what makes the opportunity because it&#39;s there for us to you know to take because it&#39;s giving a sentiment it&#39;s providing and and molding a Trader&#39;s mind or a Trader&#39;s sentiment about a market and what are they going to do instinctively they&#39;re going to react and I don&#39;t react I anticipate and that&#39;s what we&#39;re going to teach using just one simple pattern optimal trade entry and you&#39;ll see that that&#39;s all you really need you&#39;ve never needed anything more than that but I asked back then you know I think it&#39;s 2012 if you wanted to go deeper and 66 60 some of you uh went really deep now they know everything I know and I&#39;m not teaching another mentorship so please don&#39;t ask me people are still asking that&#39;s going to be the uh the first introduction to it obviously it&#39;ll be much more uh refined and uh structured as we go forward but this is certainly good enough and it really gives you an encapsulated view of an entire breakdown from an Institutional price move how institutions work inside the model of how price is being delivered and what it should go where it&#39;s going and what the setup look like and where they occur but you have to understand how the algorithm that makes the price engines drive up and down they drop down to allow traders to pick up orders at very very very low pricing and then it rallies up to allow traders to get out at very high high prices so in between there there&#39;s opportunities to trade you don&#39;t see them because you&#39;re not trained or taught from any retail uh perspective but I just gave you here is exactly how Bank level Traders trade and anybody that says different simply doesn&#39;t know anything or what they&#39;re talking about so until next time I wish you good luck good trading and I&#39;ll catch up with you next week

okay folks welcome this is going to be the first video I do uh as a beginning or a point of origin if you want to call it that for my continuing series on the YouTube channel Inner Circle Trader so there&amp;#39;s going to be a daily uh entry in terms of the YouTube channel will have a Monday through Friday video log so there&amp;#39;ll be something posted and uh in October 2017 I&amp;#39;m going to be doing a New York session live commentary so I&amp;#39;ll be talking about uh one particular pair per day based on uh my own personal choice and selection it doesn&amp;#39;t mean there&amp;#39;s going to be a setup uh that comes to fruition every single day just means I&amp;#39;m going to give you an example focusing on one particular pair and using that as a foundation and understanding your in learning price action so the first thing I want to kind of like bring the focus to is why everyone starts trading obviously they want to make money okay number one I&amp;#39;m not promising you that okay cuz no one can the only thing I can tell you is this is a particular pattern that I first discovered in price action and it was very easy to spot it was very easy to see and understood the mechanics uh rather quickly and I think uh from everyone I&amp;#39;ve ever taught this is the one pattern that uh most gravitate towards there&amp;#39;s a lot of different trading patterns out there especially in my personal repertoire but truth be told I only have really two setups I look at and I&amp;#39;m not going to give you those particular setups here but I&amp;#39;m going to be teaching you the generic optimal trade entry from a foundational standpoint or Bare Basics approach to it now right away much like everyone else has already gone through my uh free tutorials they either dismissed it as well well you know it&amp;#39;s too easy it&amp;#39;s too simple trading can&amp;#39;t be that easy um and no trading isn&amp;#39;t technically easy quote unquote um makes it difficult is is you have to measure the amount of risk involved for every setup and then you have to stick to a trading plan that you know follows that setup and even that doesn&amp;#39;t guarantee you&amp;#39;re going to make money so the only thing I&amp;#39;m guaranteeing you here is a solid understanding of what I see in terms of price action as it relates to Optimal trade entry or as it&amp;#39;s themed on the internet and in my own tutorials OT okay just abbreviation for optimal trade entry all right so uh the first idea is number one before we do anything I kind of like want to remind you all that I did a lecture uh years and years ago about how your trading plan as many as some might feel that it&amp;#39;s necessary to have you know 14 page uh you know treaty on uh what it is you&amp;#39;re going to do I think personally once understand the mechanics of it all and what you&amp;#39;re doing conceptually it only needs to be enough to fill the back of a business card okay so you need a short little list of things that you know by heart uh what&amp;#39;s your risk model how to frame that uh what makes your entry uh what gives you the conditions in the marketplace that makes you bullish or bearish and you know how do you execute and how you manage that trade and then you obviously you know where do you take your profits at so obviously it&amp;#39;s a very oversimplification on my part admittedly I understand that but uh my return back to online uh I guess tutelage and uh teaching is really kind of like bring it back in the scope of simplification because I have a lot of things that I&amp;#39;ve taught everyone about trading every asset class specifically Forex the common consensus is is because everyone&amp;#39;s tried to learn everything I taught and theyed triy to apply it to every possible scenario in every particular uh trading day that they have time to sit in front of the charts it doesn&amp;#39;t promote uh you know a solid understanding in fact it creates kind of like a paralysis effect so what happens is everyone quickly walks away from the material thinking well number one he&amp;#39;s just a demo guy because you can&amp;#39;t do it or because I haven&amp;#39;t showed a track record and it&amp;#39;s always been about you not about me so if you take this information use it I promise you you will have a greater understanding about price action than you have right now that&amp;#39;s the only thing I can promise now does that mean you&amp;#39;re going to making be making any money no I can&amp;#39;t promise that okay so everything I talk about is going to be referred to as a hypothetical scenario because I&amp;#39;m not trying to take ownership of the risk and rewards that you take in using this information so just understand that a it&amp;#39;s for informational purposes only but I think if you look at it you&amp;#39;ll quickly see that there&amp;#39;s something uh of worth in terms of studying so the first thing we&amp;#39;re going to look at is understanding what makes the market uh predisposed to go higher or lower now if you recall for those that have had that benefit of going through my old tutorials I had a teaching on uh selecting key support and resistance levels and it&amp;#39;s primarily just working from a higher time frame monthly down into the lower time frame so when I say lower time frame that would be about uh the four hour is the lowest I&amp;#39;d go in terms of defining it as a key anything less than four hours is too short term to uh refine that on a large institutional uh basis so what I like to look for is and what I taught on the fre tutorials is that if you use the higher time frame monthly weekly daily and 4 hour and we&amp;#39;ll just leave the 4 Hour offer right now just focus on the monthly daily and weekly time frames if you look for key levels where price has moved away from it in other words if price has moved up to a resistance level and repelled and went lower we can reasonably assume that there was a large degree of Institutions that had a interest in being short there and if the market trades down to a level and bounces off of it and goes higher we can reasonbly assume that there is an Institutional uh basis for that rally to ensue now without going into great detail and revisiting everything I&amp;#39;ve ever done and trying to compressing into a very short video just know that that simple premise of using a higher time frame chart and you use a monthly chart there&amp;#39;s plenty of high probability scenarios that you could find just using a monthly chart now you don&amp;#39;t get a whole lot of setups but if you&amp;#39;re watching a a wide array of particular assets there&amp;#39;s always something trading at or near a monthly level okay and what&amp;#39;s a monthly level an old high an old low as simple as that now everything I&amp;#39;m going to be teaching and revisiting in the YouTube channel is all about simplification very simple processes simple ideas no indicators no gimmicks none of those types of things you don&amp;#39;t need all that stuff very simple understand of price action the premise behind what makes these things strong is we&amp;#39;re looking for the evidence that there&amp;#39;s going to be a institutional sponsorship behind the price move that means big entities Deep Pockets lots of orders coming in large sizable orders are coming in we&amp;#39;re not looking at we&amp;#39;re not looking at little tiny little fluctuations of intraday volatility we&amp;#39;re looking at big massive telltale signs that these big boys have pushed price around and you can see that on the higher time frame I&amp;#39;ve said this so many times if folks would just focus on these time frames it will answer 80% of the problems you&amp;#39;re having because you&amp;#39;re too worried about what&amp;#39;s going on in these lower time frames because you&amp;#39;re in you enamored by something maybe I&amp;#39;ve done with an intraday chart 5 minute 15 minutes something that or even one minute charts you get on social media everybody&amp;#39;s a wizard now you they&amp;#39;re showing all kinds of things that they&amp;#39;ve either done or can do and that&amp;#39;s great but one minute charts are not going to decipher what smart money&amp;#39;s doing that&amp;#39;s just very short-term volatility now I&amp;#39;m not disparaging the ability to make money doing that because I can do it just like just as well as the next guy can but what I really want to focus my time on and this is what I taught from 2010 as it relates just to Forex but it really goes across all asset classes if you use the higher time frames on any asset class that you&amp;#39;re looking to speculate in or study that is where the big money moves are it&amp;#39;s as simple as that it doesn&amp;#39;t get any pler than that okay so we&amp;#39;re going to assume for a moment that we ass you assume that the Market&amp;#39;s bullish okay and we would be looking for the market to trade higher optimal trade entry is really based on buying retracements okay as the market makes a impulse price move higher uh that impulse price move has to be incorporating a a break in Market structure and I&amp;#39;ll show you what that looks like in the chart and then you&amp;#39;re what you&amp;#39;re doing is you&amp;#39;re trying to buy the retracements lower and obviously it&amp;#39;s very cliche to here in technical analysis buy the dips sell the rallies okay if you&amp;#39;re if you&amp;#39;re bullish you&amp;#39;re going to be buying the dips or any retracements lower after a price leg higher and then the expectation is you&amp;#39;re buying it when it retraces and then you want to buy it as it does that and then capture the next leg higher and everything&amp;#39;s reversed for when it&amp;#39;s bearish we&amp;#39;d be looking for uh rallies in price and we looking to sell those rallies with the expectation that we&amp;#39;re going to break to lower lows okay and that&amp;#39;s the optimal trade entry short and uh optimal trade entry long in a bare definition simple definition so what it looks like is on a fib this is the basic model uh there&amp;#39;s been many approaches to having uh the Fibonacci show what I use for optimal trade entry but this is the bare bones this is how it started this is how it is and I&amp;#39;ll show you what these settings are let&amp;#39;s go over here and click on and I&amp;#39;ll let you see the settings that way you can set your mt4 or equivalent to the same uh the zero level is first profit and scaling I&amp;#39;ll explain these as I go um 62% retracement level I&amp;#39;m rounding it um and then you have the 100 level which is one here and then we have the percent sign dollar sign just allows the mt4 platform to plot the actual value you can see that over here and then it&amp;#39;s 705 for the sweet spot for optimal TR entry that&amp;#39;s the price level I&amp;#39;d like to see price trade too and 79% and we have our Target levels which is 0 negative 0.62 negative 027 and then negative one for a symmetrical price swing okay and then the same as this you know done over here I don&amp;#39;t need to show you the uh property settings for that it&amp;#39;s the same thing just shown in a scale of looking for downside objectives so the premise is we&amp;#39; be looking for price to do something like this okay we have a impulse price leg higher and then we have another impulse price leg off that level and trading down into optimal trade entry okay so what we&amp;#39;re trying to do is get below halfway of that price leg higher down into 62 70 and a half to 79% retracement level okay I try to get my fill at 62 just everyone knows right away it&amp;#39;s for completeness sake I try to get at or very close to the 62% retracement level I allow up to a little small deviation below the 79% TR level to 80 okay I allow that for price now my stop will be exactly at this low not 10 Pips or five Pips below that it&amp;#39;s going to be right at that low okay so it&amp;#39;s easily defined if we were trying to get in at uh 62% Trac level it&amp;#39; be my fill would be one um sorry 1234 uh3 what&amp;#39;s call it this is the gold market uh all this stuff it&amp;#39;s just that&amp;#39;s the price it&amp;#39;s showing uh I&amp;#39;d look to get um Phill at basically uh 1235 we&amp;#39;ll call it okay just a little bit about 62 I&amp;#39;m not going to fancy dance around try to get the actual uh level I just want to be in a level to make sense okay and then between that and where I think um the low should be formed based on my um analysis where the price would be terms for the price swing I&amp;#39;ll show you what that looks like in the chart uh the stop would be exactly right there so between the two reference points uh that would be the risk okay uh the level up here zero level is when you take off first profit now I like to go a little bit early because it could always fail getting back to this high so at that high or just below it that&amp;#39;s where my first profit is that&amp;#39;s your first scaling that&amp;#39;s not your first Target first Target is here okay so you got to expect price to want to event get to this level or maybe this level if you&amp;#39;re really extremely bullish all the way up here to have a measured move what&amp;#39;s a measured move the impulse leg low to high that move is the same thing just added to the high up okay so that&amp;#39;s a a perfectly symetrical price swing they don&amp;#39;t always happen to that degree and that&amp;#39;s why we have to be looking to take profit right before our old high cuz it could fail there and if it goes above it at the 127 uh extension basically is what this is I&amp;#39;m going to be looking to take something off there and if we get to uh 60 2 extension up here I would be another portion for me to uh take profits and then if I&amp;#39;m extremely bullish I&amp;#39;ll leave a small piece on for a measured move type effect so the same thing is seen over here for when the Market&amp;#39;s bearish we look for an Impulse leg lower in price okay and then we expect to see price retrace higher back into optimal trade entry and that&amp;#39;s defined between 62 and 79 cration LEL it could be anywhere in here now the problem is I&amp;#39;m not teaching supply and demand so supply and demand zones and stuff like that I don&amp;#39;t do those types of things I look for specific price levels and I&amp;#39;ll teach you through the month of October how to refine that down to a specific price level and not just wonder you know where it is in that zone that you&amp;#39;re going to be taking a trade at okay so I&amp;#39;m going to give actual price levels to look for and the same thing we would expect the price to show willingness to drop lower limiting our risk to the actual High between the entry and the high that&amp;#39;s our risk so we would take that amount of risk Define divide it by uh you know the percent risk that we&amp;#39;re willing to uh assume based on our account we&amp;#39;ll say it&amp;#39;s a half a percent uh whatever half percent of your account is uh you you take that in terms of the Pips and break that down and that would give you your per pip uh leverage and I know something I&amp;#39;m I&amp;#39;m brushing over that rather uh quickly and it&amp;#39;s because I&amp;#39;m trying to just give you a foundation and then obviously through the entire scope of October we&amp;#39;ll actually refine that so you can see how to do your risk how to determine your risk and figure out what you can earn on the position and what you&amp;#39;re you&amp;#39;re risking and I&amp;#39;ll teach you how to move all the stops when when it&amp;#39;s supposed to be done and all that but ultimately we would expect to see it then move down into some reasonable objective first profit would be down here but just above the old low so we will un take profit here the thing is this is what why most Traders screw up and they don&amp;#39;t make money and they&amp;#39;re not profitable either in demo or in live is they don&amp;#39;t do this practice right here knowing where to get out it&amp;#39;s a first scale you have to know what that is and it has to be a reasonable amount of range to promote the idea of justification for the risk so if I know I&amp;#39;m getting in here and my ENT exit a loss is up here with my stop it has to be a reasonable you know better than in my opinion better than two to one okay and that&amp;#39;s about as good as I get in terms of trusting reward to risk ratios okay so what I&amp;#39;m looking for is everyone will look at this way they&amp;#39;ll say okay I&amp;#39;m I&amp;#39;m trading here at a short and my risk is here so that&amp;#39;s uh my risk okay whatever that multiple is then they start doing this it&amp;#39;s okay for if I get short from that point there&amp;#39;s one R there&amp;#39;s two R there&amp;#39;s three R there&amp;#39;s four R I think that&amp;#39;s flawed okay and that&amp;#39;s the reason why I make fun of folks when they want to talk about risk reward models uh it really should be done on first scaling okay so if I&amp;#39;m getting here as an entry and my risk is here it needs to be enough of the position coming off that promotes at least two to one so if this is one R in terms of the risk whatever that is I have to be able to make two times that in my first profit that&amp;#39;s what I&amp;#39;m trying to shoot for now sometimes I&amp;#39;ll take trades that are just slightly underneath two might be like one and 3/4 okay if I&amp;#39;m really really aggressive and I&amp;#39;m I&amp;#39;m just in a fast market and uh we&amp;#39;re not even a fast Market I should say it like this if I&amp;#39;m in a market that is indecisive but I&amp;#39;m already in the position so I&amp;#39;m managing it um I&amp;#39;ll I&amp;#39;ll look to take out one and a half% but I&amp;#39;m really looking for trades that&amp;#39;ll frame a model that&amp;#39;ll give me around two okay so whatever my risk is from here to here I want two times that from my entry to First profit okay and that&amp;#39;s why I want to get as deep as I can you know into that 70.5 level I&amp;#39;m not going to demand 79% trades level I&amp;#39;m going to be looking for the 70.5 preferably to give me my entry at 62 so that&amp;#39;s what I&amp;#39;m looking for so not all trade scenarios are going to give me this gearing but the ones that do they&amp;#39;re the ones I&amp;#39;m going to take okay and obviously it&amp;#39;s not as good if it&amp;#39;s on like a one minute or five minute chart because the range is going to be very very small the setups that are on like an hourly chart they&amp;#39;re good because it&amp;#39;ll give me enough of a range to get close to that two: one reward the risk and if I get that everything past that first uh scaling out takes care of itself and that&amp;#39;s why it&amp;#39;s I laugh when I hear folks saying it&amp;#39;s stupid to take first uh profit or scaling out profits because your initial risk is X and then you you&amp;#39;ve taken a small profit yada yada y well it&amp;#39;s because I&amp;#39;m looking for these objectives down here and it takes care of itself okay and it ends up becoming my last portion ends up being way more generally than what I did in my first uh scaling so it it&amp;#39;s it&amp;#39;s not it&amp;#39;s not an issue for me to be worrying about and if you see examples of it you know going forward you&amp;#39;ll you&amp;#39;ll see quickly there&amp;#39;s no reason to be thinking it&amp;#39;s uh a bad idea actually so let&amp;#39;s go over to the charts and I&amp;#39;ll give you some examples of how quickly and easily you can find these setups and we&amp;#39;ll give you all kinds of examples of it going forward in October okay we&amp;#39;re over here at trading View and admittedly I&amp;#39;m a little clumsy when it comes to this platform I&amp;#39;ve not been active in using it but I&amp;#39;ve been practicing with it so that way I can use it as our medium for our teachings so I want to kind of like draw your attention to how price on the euro dollar this is a weekly time frame and price in recent weeks have pushed above these old highs over here okay so if we did this on a monthly scale and let&amp;#39;s do it just for completeness sake okay you can see this High here me zoom in a little bit so we have this High here and this High comes in at uh 11714 okay 11714 for this particular month so what I&amp;#39;m going to do is I&amp;#39;m going to drop a horizontal line right on it and I&amp;#39;m going to ask you a a question regarding pricing so if we see price trade on this particular month right here it trades Above This high right above it once we go above this old high just think in terms of simple support and resistance folks it&amp;#39;s not complicated when price is above it whatever that price level is and we&amp;#39;re we&amp;#39;ve already assumed um not assume we&amp;#39;ve had figured out that it was 11714 the markets trade in an algorithmic U format okay there&amp;#39;s price engines that generate uh you know runs on pricing and runs on stops and there&amp;#39;s accelerations in price and where delivery skips and jumps to specific areas in uh pricing the easiest way to understand what that is is if you look at a chart you can do it like on an hourly chart or 15 came that time frame you can see it on all time frames but really 15 in 1 minute if you do it over the course of a week you&amp;#39;ll see how price gravitates from a full figure okay and that would be an example of like 1170 to 1180 that would be a full Penny move in the euro dollar that one penny move is broken down algorithmically to the 11780 level 11750 level or mid figure 11720 level and then we have 117 big figure okay so my question to you is this if price traces above it this old high back here because we broke through that this low this High I&amp;#39;m sorry this high is 1714 so from an algorithmic standpoint what price level would it want to reach back down into if it&amp;#39;s going to go down for support 117 20 because it&amp;#39;s just above the 11714 right so if this high would have been 117 say 65 what would the level be that would You&amp;#39; expect to see it reach down into for an algorithmic support level 11750 mid figure okay so think in terms of that okay and what this does is it eliminates all this distraction okay looking at ladders and depth of market and all those types of things you can probably swear by it and tell me you&amp;#39;ve done really really well and that&amp;#39;s great just like anybody else using Crossovers and macd they can tell me they&amp;#39;ve done really well with that too I&amp;#39;m not telling you that you can&amp;#39;t make money doing that kind of stuff I&amp;#39;m just simply suggesting to you there&amp;#39;s a much easier approach to doing this than everyone&amp;#39;s doing so we&amp;#39;re using an old high here and while the level is 11714 and the specific high from an algorithmic standpoint we would look for sensitivity or support to form around or at 11720 okay so we&amp;#39;re going to leave the level here and we&amp;#39;re going to drop down into a daily okay so we have the 14 11714 level on our charts and now I&amp;#39;m going to ask you to consider what is going on in reference to the institutional level from an algorithmic standpoint in other words we looked at our pricing model it&amp;#39;s full figure above it the 20 Level above that mid fig 50 above that the 80 level institutional and then we have the next full figure okay or 118 so if we&amp;#39;re above price when it trades above it here we expect to see price find support when it comes back down into the 20 Level okay so now we can adjust this level here and show at 11720 okay so 11720 is the institutional price level from my algorithm standpoint price is going to want to trade back down to that level the reason why it does that is it allows the market to pick up orders at just below or above that level okay there&amp;#39;s limit orders there there&amp;#39;s uh there&amp;#39;s stops there but generally it&amp;#39;s coming down the Run stops to pair the orders with smart money&amp;#39;s limit orders okay every time you see my chart below the market I&amp;#39;m always referring to it as running sell stops above the market I&amp;#39;m always referring to it as running buy stops those that are not in the know they will question whether or not I&amp;#39;m using the right uh uh definition I am using the right definition because I&amp;#39;m looking at things from an Institutional standpoint those uh sell stops that are below the marketplace smart money will have their buy limits to pair up with those sell stops okay so my perspective is not retail so I&amp;#39;m looking at it from an Institutional standpoint from where I&amp;#39;m from I don&amp;#39;t look at it retail so if we understand that the a market is above this 20 Level when it trades down into it we should see the market trade into a support level that support level is going to be defined by some pricing model and I just gave you one it&amp;#39;s very simple uh we used the old monthly high and we&amp;#39;re finding support we want to see price trade off of that and give us a pattern so now we have a level it&amp;#39;s been rounded to an Institutional level 20 1720 and now we can drop down into lower time frame charts and we&amp;#39;ll just look at a 15 minute time frame okay and then we&amp;#39;ll okay there we are all right so we have price trading down on the 27th and hitting the 20 Level notice what it does it hits it and then rallies away that rally this is what you&amp;#39;re looking for you want to see it take out a shortterm high that is seen here you have a short-term High it trades through it once it does that this break above that short-term high is a market structure break okay so now from an algorithmic standpoint the price will want to retrace back down once it retraces okay it&amp;#39;s going to pick up more orders and then rally again okay we have another break Above This short-term High here and I&amp;#39;m quite certain you guys that are more proficient with trading view you&amp;#39;re probably smiling saying he could have done this or that and just made a copy I don&amp;#39;t know all that yet so this give me some time so we have another break here okay so we have short-term High broken and another high broken now watch this High being higher than this one from a market structure standpoint short-term High intermediate term high so now when this breaks here we have a much more solid setup for a potential run and price higher now we have to enter the optimal trade entry because we already have a consolidation in here price trades away came came back to the consolidation distribution redistribution smart money reversal lowrisk buy and here we&amp;#39;re looking for another area to buy okay or another area of accumulation or reaccumulation to take us Above This consolidation now what I just described to you is a market maker buy model as simple as that some of you will say oh that&amp;#39;s wof well I kind of got the idea from looking at Price action alone and then when I saw wof describing that that the scenario it made me feel better that I seen something that someone years and years before me was able to see that same price structure but his definitions and things I don&amp;#39;t use that there&amp;#39;s a different uh approach in folks that went through my mentorship ship no right away and I&amp;#39;ve challenged them as well to go through wof and see if what I was teaching was wof it&amp;#39;s not it&amp;#39;s very similar in terms of the General market uh profile itself because it&amp;#39;s a it&amp;#39;s a very generic process mark up and discount it&amp;#39;s simple as that but the long and short is the the Run above here right there that impulse leg is all that&amp;#39;s necessary because now we have a a uh profile or model that would take us Above This consolidation so we would look for this whole price action right in here to be traded above okay because that&amp;#39;s where the buy stops are hitting are sitting so smart money buys down here at the 20 Level and we would know this level beforehand and it&amp;#39;s basically uh the 11820 because Above This High uh this high would be 81.2 and obviously above 11810 the institutional level would be what 1820 and that would be where smart money would want to exit running those buy stops why do they want to run buy stops because the orders they picked up down here going long and then bought more down here they&amp;#39;re long so they have to have people that want to buy it from them at a higher price so buy stops that would be above here why would there be buy stops there Michael because folks that are being short this is the last intermediate term high for anyone that has not Trail their stop loss lower and got stopped out they&amp;#39;re going to make a run on that liquidity right there which is the reason why the uh Market maker buy model is so well good all right so we&amp;#39;re going to look at this little area right in here okay and this is going to be the optimal trade entry that we&amp;#39;re going to talk about just for tonight and let&amp;#39;s make us a little bit bigger okay so this impulse leg ring away and then coming back down picking up more orders that&amp;#39;s optimal trade entry that&amp;#39;s what it looks like in price that&amp;#39;s the uh the executable um price level you can trade on now I&amp;#39;m going to ask you to let me go back to mt4 just for uh the the pattern take but I wanted you to see how it can be shown on a trading view it&amp;#39;s not just simply uh an mt4 Trick Pony um it&amp;#39;s it&amp;#39;s there as well but I want to go over to mt4 because I&amp;#39;m a little bit more efficient with that uh charting PL platform and then we&amp;#39;ll go into looking at the example okay so we&amp;#39;re over at mt4 and just kind of like redefine what we&amp;#39;ve already discussed this is the old monthly High okay 11714 and price was coming down away from from higher levels and we had a short-term low here and we had a little bit of a rally in there and folks try to capture um old lows or try to capture U any advancement higher if they&amp;#39;re lucky enough to get in and see a little bit of a profit they obviously fall in love with it they marry the vein the expression is and obviously their their stop would be resting below that so the market trades down into that 20 Level institutional level picks up orders right in here okay runs hits that and then rallies through breaking this short-term structure High when it does that we have a market structure break we wait for a retracement lower okay now the first time it does this you&amp;#39;re going to maybe lose the lowrisk buy for a market maker buy model the consolidation here the run away come back to consolidation distribution smart money reversal low risk buy reaccumulation that&amp;#39;s what we&amp;#39;re looking for the next area of accumulation so this short-term High being broken here we mention that this is a higher high than this one so this is an intermediate term High okay uh my old tutorials uh brought out a concept I picked up from Larry Williams which is my mentor back in the 90s uh he taught Market structure and a high that has two lower highs on either side out of it it makes that high in the middle a significant high and that as it nests out it gives us a market structure model here this High being broken right there is much more convincing than this shortterm here without understanding everything I&amp;#39;m giving you here as an outline or understanding the expectation of how orders are stacking around higher time frame key levels and understanding algorithmic price models because that&amp;#39;s what I&amp;#39;m teaching here tonight from a a very basic approach this is all stuff I taught in my free tutorials sniper and Precision Trading Concepts and all the other stuff in between but this rally right in here this impulse leg right there is all that we would be looking for so this move up when price trades up and creates that high what it&amp;#39;s doing is it&amp;#39;s making a a a more convincing run Above This high so it&amp;#39;s a mark structure break on an inter term high so it&amp;#39;s much much more reliable so the retracement on that is going to be much more significant so when we look at Price moves we want to look at the price move on the bodies of the candles I taught this in my tutorials the Wicks are always going to be the thinnest price action okay and if you look at everyone&amp;#39;s price uh across all different uh platforms and uh Brokers the part that&amp;#39;s always different that throws everyone off is the wick because the broker is allowed to have have some measure of uh flexibility I&amp;#39;m just going to say it that&amp;#39;s the polite way of saying it where they can spread price a little bit more so you&amp;#39;re already getting a derivative of price from interbank feed anyway but the discrepancy between that and what you see at your broker is many times way off okay and you sign your agreement to that when you set up your account you&amp;#39;re you&amp;#39;re allowing that to occur okay so you can cry about it they did this to me they did that to me but you really gave them permission so it is what it is all right so this rally up we&amp;#39;re looking at on we&amp;#39;re going to put on the bodies of the candles up here this is the highest body right there this candle right there and we&amp;#39;re going to look at that as the open so the open is $17.99 so that&amp;#39;s where our FIB will be dropped right there okay and we&amp;#39;ll let it go so now what happens is price rallies through impulse leg up and it drops back down look how nicely it gives another little uh bounce right there trades back up higher and it spends all this time on a 15-minute time frame this is going to chop Traders with no patients up they&amp;#39;re going to get scared every time it comes down or when it starts to Rally like this they Jam their stop loss right under underneath this low here and then look what it does eventually comes out hits it you have to give the price freedom to trade from where you&amp;#39;re trying to get in at to your stop let it go to the full stop it&amp;#39;s there for a reason to protect you but if you don&amp;#39;t give it room to breathe you&amp;#39;re never going to give these mark markets uh the ample room that it needs to to gate and then expand towards your targets so the same Fibonacci settings okay nothing&amp;#39;s different here when trades up to this price level right there or just below it there&amp;#39;s your first profit okay so if you&amp;#39;re trying to get in at 70 uh5 or 62% retracement level this movement here you got to see at least two of that one two okay first profit scale off put your stop to break even let it go price trades up to the first Target you can scale something off there trades to this level here you can scale something off there and trades up to symmetrical price swing boom hits that okay and then look at the reaction after that all the way back down you think that spy happen St just you know coincidence no it&amp;#39;s going to an area of liquidity we have a bearish order block here overlaps with the target two really nice move there but look at this short-term High here what do you think is resting above that buy stops now there&amp;#39;s going to be some out there that don&amp;#39;t understand what I&amp;#39;m teaching because they don&amp;#39;t see things from an Institutional standpoint they have no idea how to look at it like this but there is Trail buy stops that don&amp;#39;t get Trail down here not everyone carries that model where they got to jam it up seven tis you know above the recent High when they&amp;#39;re bearish that&amp;#39;s what retail does longer term trending models they have their stops farther back okay and this is one that would have been targeted and here&amp;#39;s another one as well okay and it overlaps with the symmetrical price swing that we have on our fit okay which is a 100% measured move of whatever the impulse swing is this low to this body&amp;#39;s high is the same thing from that body&amp;#39;s High all the way up to this level it&amp;#39;s 100% the same in term of Pips and range it&amp;#39;s the same thing from this price point to here added to this and you get that very very precise very very uh precision based uh Trading it reaches for the 20 Level okay you can how much work there was around it near the 20 a lot of 20 20 20 so the market will gate and work around these levels here okay this is one penny move in the Euro so look at the sensitivity around the 20 Level it trades up to and consol consolidates a little bit and gets another optimal trade entry right in here from this impulse Lake up rallies again what&amp;#39;s it doing it near the 50 level well it&amp;#39;s not exactly at 50 Michael exactly because at these levels at 50 there&amp;#39;s orders that are just above it or just below it or at the 50 level just like we have at the 20 Level it can be at the level 20 above the 20 a little bit or below it everyone&amp;#39;s going to have orders that are be close proximity to these specific levels that&amp;#39;s why the algorithm reaches for them now institutions like these levels from a generic standpoint because it makes it easy for them to price their models in we had the old high at 11714 that&amp;#39;s an odd number so look for the manipulation here a stop run then a break in Mark structureal rally when we have that anticipate some measure of buying and then wait for the intermediate term High to be broken here you&amp;#39;re going to lose all this there&amp;#39;s nothing wrong with that but if you want high probability and you want confirmation and I&amp;#39;m holding my fingers up in quotations you want confirmation this is what it looks like you got to have an intermediate term High broken Market structure and then do everything I just did here and you have a complete trading model targets how to know when to do it using a higher time frame level what to reach for well you got have to look for an old high to run through okay so if you&amp;#39;re buying low you want to sell High how where do you sell high at just find an own high somewhere okay and do it in a scope that as we outlined here this is just one example you see many of examples of these going forward but this is just one that is a aable to you and you can see it in your own charts and study it and seek it in other pairs throughout this week that we&amp;#39;ve had and find similar examples of this even looking for it for shorts as well but this is going to complete this first uh introduction to Optimal trade entries this your first time here uh this is what it looks like uh coming back down into it here that&amp;#39;s the buy okay you can buy it here or here and look at the dynamic re reaction now with this like it is on the chart I&amp;#39;m going to drop down into an hourly chart and you&amp;#39;ll see see why I like the hourly setups because they&amp;#39;re much cleaner a lot of noise on these lower time frames but same impulse leg here and it comes right down it&amp;#39;s beautifully here the body is respecting the candle I&amp;#39;m sorry the body&amp;#39;s respecting the FIB level not that the FIB level is giving them there no magic in the FIB it&amp;#39;s just giving a specific framework for us from the best perspective we can have not being on an interbank level uh institution where you can actually see because you&amp;#39;re not seeing these orders folks you&amp;#39;re not you know that&amp;#39;s why I laugh when folks will say you know I&amp;#39;m looking at the you know um well I said I wasn&amp;#39;t going to do those types of things I&amp;#39;m not going to belittle anybody else because if you&amp;#39;re making money doing what you&amp;#39;re doing you know God bless you uh that&amp;#39;s why I like Forex because I understand the animal and the things that everyone hopes they can see in their little gimmicks and their indicators that&amp;#39;s what makes the opportunity because it&amp;#39;s there for us to you know to take because it&amp;#39;s giving a sentiment it&amp;#39;s providing and and molding a Trader&amp;#39;s mind or a Trader&amp;#39;s sentiment about a market and what are they going to do instinctively they&amp;#39;re going to react and I don&amp;#39;t react I anticipate and that&amp;#39;s what we&amp;#39;re going to teach using just one simple pattern optimal trade entry and you&amp;#39;ll see that that&amp;#39;s all you really need you&amp;#39;ve never needed anything more than that but I asked back then you know I think it&amp;#39;s 2012 if you wanted to go deeper and 66 60 some of you uh went really deep now they know everything I know and I&amp;#39;m not teaching another mentorship so please don&amp;#39;t ask me people are still asking that&amp;#39;s going to be the uh the first introduction to it obviously it&amp;#39;ll be much more uh refined and uh structured as we go forward but this is certainly good enough and it really gives you an encapsulated view of an entire breakdown from an Institutional price move how institutions work inside the model of how price is being delivered and what it should go where it&amp;#39;s going and what the setup look like and where they occur but you have to understand how the algorithm that makes the price engines drive up and down they drop down to allow traders to pick up orders at very very very low pricing and then it rallies up to allow traders to get out at very high high prices so in between there there&amp;#39;s opportunities to trade you don&amp;#39;t see them because you&amp;#39;re not trained or taught from any retail uh perspective but I just gave you here is exactly how Bank level Traders trade and anybody that says different simply doesn&amp;#39;t know anything or what they&amp;#39;re talking about so until next time I wish you good luck good trading and I&amp;#39;ll catch up with you next week

Transcript for:Introduction to Optimal Trade Entry by Inner Circle Trader

Transcript for:
Introduction to Optimal Trade Entry by Inner Circle Trader