Transcript for:
Understanding 50% Levels in Trading

what's going on guys welcome back I want to elaborate a little more on 50% levels and imbalances okay so now this is another important concept and another way that we can take trades and when you mix this all together you're going to be having Banger trades you're going to be looking like me you're going to be looking like yourself come on you're going to be trading your own plant so let's talk about it so when we have a Zone and we're just going to Mark the zone you know as a black zone right zone is just a box because we had a basing and we had a agressive move to the upside and in that zone you're going to have a line that crosses the middle this is the 50% line okay and this is another reason why we want to keep our Zone small right a lot of you guys my question you know I mark my zones or I hear this uh being said a lot right uh because we used to say it back then we used to say the larger time frame zones are the most important zones and now that we have become more aggressive and we have adapted to market conditions that thought of the larger time frame zones are the more aggressive zones we don't pay attention to that no more okay what we want actually besides just marking the more aggressive time frame zones is we want to have uh uh smaller zones right so if we can get a 4H hour and the reason we still Mark the larger time zones is two reasons we might not have them on a short time frame Zone not only that but we when we have it on a bigger time frame our our brain is like a computer right we memorize oh my gosh this is not only a 4-Hour time frame but there's an aoi here there's a split here there's a 15minute here so the probabilities of this working out are a lot higher than I actually think than than we actually think right so um in a Zone you're going to have three Pro properties to that zone you're going to have uh the number one level into that zone okay which is going to be this you're going to have number two and number three right so this whole area of that zone below 50% is number three and we're going to consider this uh a demand Zone okay so we're going to call this a demand Zone I think that's the the best way to start there okay this is a demand then we'll go into Supply okay um and then we're going to have the top which is number one and then the middle which is only going to be a a singular line okay the middle of the Zone uh the middle of the Zone that's going to be our 50% line okay and that's our psychological level okay so this is for demand okay when we break when we fall into we usually fall into demand we don't go up into demand there's no way okay when we fall into demand okay uh the the the concept of it is that we're going to bounce right I want you to start looking at these zones a little different okay I don't want you to think anymore that we're going to bounce or we're going to fall okay there's no bias okay when you go into the Zone a demand or Supply Zone I I don't want you to have a bias I don't want you to think a bounce or drop okay it's n okay we're going to do what the market wants to do period okay we can't we we we need to adapt to the market and play what we see now above the zone and this is another property of the Zone but this is not important you're going to have the aoi okay the area of Interest that's going to be the aoi okay um there's many plays we can take here if we break aoi and we discussed that in the aoi video we might be able to play short into the zone and this might just fall all the way to 50% without reacting into are a property one we might balance that aoi might be able to play the long over here okay so do you see how we're able to play the short into Dem Mando if we were to break aoi right so you could play the short into demand now the only time I don't want you to play short is when we're anywhere near this area I mean you can play again very near the 50% line but you should not be playing short like let's say we're here in the zone if I see you playing short and you say oh why did I lose this trade you know you lost the trade cuz you're playing short short in an area where you shouldn't be playing short you can play short here you can play short here you can play short here you want to be careful once you start getting to property one be careful with playing the short you know what I mean don't try to play the short cuz then you're playing short in the first area of demand okay and that's usually where we bounce we're going to bounce in that first area of demand anywhere so we want to be careful right and that's why I say I mean if you have the short from aoi that's fine because you have it from up here you don't have it from property one so your stop loss if you were to play here it's all about managing risk you're going to be able to have a very tight stop loss but if you play it from again you're playing it from down here dude you're going to have a wide stop loss you're going get stopped out you're going to blow your account you're going to start complaining why why does this happen to me well because now you realize that you're not playing the right levels the only time we're playing short is at 50% near 50% cuz we can have a tight stop loss okay or the break of 50% then we can play the short right and we can write all the way down to the break of property three which is the zone okay um then we can play a short so you see how we're playing the long and short okay we're not playing short in here we're playing short here we're playing short near 50% or below 50% now under 50% you can play whatever you want you can play the retest of 50% into the short and the break of the Zone um there's there's many things you might have uh uh this is another way that you can play the long let's say we were to break under 50% you get faked out right and all of a sudden we go back up above 50% it's the same thing that we talked about in the split video if we break back above 50% and we retest 50% don't be afraid to take that long if you see that momentum and volume coming in take the long maybe you got stopped out a short but there's no reason why you shouldn't take that long okay um so don't be afraid I usually don't though take Longs near property 3 down here I never I usually never take Longs over here never it's too dangerous right usually that happens we're going to break the low now when do I invalidate The Zone because sometimes we we talked about earlier right when we talked in the zones videos in the first video of this lesson uh uh or course VIP 1.0 course we talked about how if a Zone gets broken we invalidate it now there's a situation here that might be a little confusing when we break the Zone I don't want you guys to immediately delete that zone okay cuz what going to happen is that we're going to come down uh sometimes and and if there no other zone is formed just leave it for a little bit okay just leave it for a little bit and wait to see if we come back into under 50% and then we drop again A lot of times this is going to happen why does this happen because again you got to think about it the basing candle of this demand Zone formed a zone so when we break this structure usually what happens is we create some kind of Supply in that Basin can of the demands okay and we have to be very prepared for that okay so that's for demand let's talk about what we see here okay let's go into a 15minute time frame um and let's just go into something super random here okay boom boom boom boom boom boom okay perfect random okay and I want you to pay attention here very quick I don't want to go all the way to April which is let me go 5 minute let's see yeah 5 minute we're fine so let's look for some zones here okay it it should be very simple here um so let's see if we find any zones I don't see anything yet again this is not a Zone again if you you don't know why this is not a zone go back to less than one you need to be watching all the videos don't be asking me is this a zone that means you didn't watch lesson one cuz you thought you knew it so we have a fight at the top that is not a Zone okay let's see if we find a Zone oh I found a Zone okay we have a zone right here we obviously take a look right if we break that 50% level what's going to happen we play the shorts we are above hit that 50% level we can potentially play the Longs this is not a Zone because there's a bat on top let's see if we have any Supply zones now and we don't really want to focus on these too much uh because we're right now we're trying to understand theand so let's see if we even go back into this uh 15 minute Zone okay let's see please please come back into it yes perfect yes we're in the zone okay what's below our zone right now guys let's see going to five minute not really an imbalance below okay I mean under 50% I guess under this are area we do have a split and again that can be found in the split video to fill down here then we end over here and then we have another to fill down here so we can fill down here no price action right no price action okay we can easily fill that recover no price action now if we get we're we're at 50% right now we're retesting you see how every time we get to that 50% something happens here okay um this is my situation here okay we have an imbalance up top let's see if we form some kind of split okay forming some kind of split look how we're bouncing up up up above this okay we go back into o first of all you could have caught that 50% bounce right 50 ticks now we break under 50% so if this closes I'm definitely going short I'm going short right if we closed okay we closed I should have already gone short here okay and let's see what happens here okay boom first split filled so you guys see how this just got filled right so now I have to be careful because we can bounce here okay so I would probably just move my stop to break even here okay cuz we filled the first I can TP here because we filled that first imbalance there so you see how I'm using the 50% with my imbalances exactly what we want to do right ooh everything got filled oh that's fully filled I would just end up getting out of this position I would have gone out down here but obviously this is replay mode but everything got filled and when we got filled look it all got filled this ends and then there's a split right here and then boom We bounce at it and then this is what I talked about see how we tried to reject 50% again right but then we just came back in we broke above you could have taken long and then boom you have your other your next Victory there look at the 50% how it worked out to the long side boom boom boom I love when I talk about something and then it works out makes you feel good um but again just to elaborate on that a little bit that's what we kind of want to play especially in the demand okay is uh that let's see if we can find something else here okay I'm going to go again in a 15 minute we're just going to go right here whatever that is um so same thing um let's see if we find something over here uhuh doesn't look like it does not look like it I don't really see any demand I see a demand Zone actually here I like this one okay so that's it and this is the aoi right here all right cool let's see we have o perfect demand for no overlapping zones we're fine aoi is right there it's so close together that I'm just going to keep the Zone Okay so we have aoi we have 30 minute we have a 15 minute down here with an aoi as well right there so let's go on a 5 minute let's see we have those imbalances and what other zones we have we don't really have anything else so in the 5 minute it looks like this is also a zone so this is a tough situation right we have a 30 minute here um so in a situation like this what I'm going to end up doing is this is an imbalance here so I'm going to leave my 30 minute Zone actually cuz I'm not going to put a 5 minute and overlap with a 30 minute right this is kind of based on your decision what zone would you rather trade not me you okay so I'm going to stick with my 30 minute okay um what I'm going to do is I'm going to call this a split okay because there's an imbalance that needs to be filled all the way into this area Okay so this is the open of the 5 minute once this gets broken okay we can potentially go into that 30 minutes so that's what I'm going to play it as and then we have a split right here that kind of just got broken to fill that imbalance to the top all the way into here but we'll see what happens okay this might just end up pumping cuz we're feeling that IM balance we'll see if we can come down please come down please come down I just want to see the next time it comes down cuz we form more zones uh never it comes down huh uhoh we end up pumping all the way up okay we ended up bumping all the way up and I still want to see what happened when we came back into that level if we ever did and we never did interesting okay but again those are levels we're going to watch so again let's look for those levels that we might potentially have right so let's kind of just replay back into some area that we might uh potentially want to look at so pretty much uh let's find see if we have any 30 minute zones obviously start at higher time frames and so on right but we have a we have a Zone here and a Zone here so in this situation what would you Mark at at this since they're not overlapping you can use both zones that's fine right but we don't want them to ever overlap where they're in with each other right uh this is kind of borderline situation where you have a Zone and then the zone right under you still want to be careful because again even at the Zone guess what the 50% line is it's not only 50% what is it guys I'm going to let you answer this in your head we already talked about this it's also a split Okay so so if we break this you know what's going to happen is we're going to fill that imbalance to the downside right so this is a double confirmation double Confluence situation right oh but hold up we're on a 30 minute time frame we can't tell if it's an imbalance on a 30-minute time frame so we have to go into a five minute time frame okay and we can really find a split here so yes it is a split and it gets filled all the way to down here and then if it breaks this we F all the way down there so this is the end okay so good watch good eye then if we break this we can go down into level one uh potentially level two uh if we break this I'm definitely going short and if we break this o I'm definitely going to go short at least into property one all right so let's see what happens here let's see first of all we have any other zones there's a split there's no split we can't tell there's a split there there's a Zone here though okay so now I got another opportunity okay I love this I just love this it gets better and better right so we have have a Zone there we break this we have an imbalance end of the split we break that I'm playing all the way to the downside oh my gosh this is beautiful this a split split split maybe split we break that we go all the way to the downside all right so I'm going to watch this right now and see what kind of happens here okay so boom boom boom we're back in that 15 minute let's see if we bounc there okay we bounc that property one you see how we bounced that property one there that was pretty good see we go back down here pretty soon oh okay perfect so this is kind of a situation where we start focusing up we're creating a split right now okay okay so let's focus up a little bit okay okay we formed a split I was about to say we formed a split right here okay let's see if we fake out we continue the upside no no no that split faked out we're coming down so now with this much retest into 50% um we might close under and we might not we get a bounce and we break that area this area I'm going to end up going long to try to fill at least this imbalance over here so let's see if we can do that or we come back so we went back into the split again okay retest at this point we're going to see if we break just keeps retesting the split oh it filled it filled we would have done it look at that perfect fill exactly what we just said too perfect fill into 50 ticks right we broke I told you we formed the split once we would have broke we fill that in Balance over there right we bounced from 50% you could have easily taken the long from down here but if you missed that you could have gone in at the split and then fill that in Balance right there let's see what happens when we go back into that area if we even do we formed another split so I'm actually going to take short if we break the split I'm going to try and take it short at least into that that 5 minute right here if we break 50% then I'll consider holding no come on d o o o breaks 5 Min 50% Str momentum look how how long you could have hold this guys we break momentum we break the split we fill the split where do we bounce everything gets broken all 50% um again uh we break through where do we bounce 50% now we break this 50% I'm going short but looks o we break 50% you get short long short long short hold the end of the split we're going to fill the hole in Balance down there are we who knows oh we filled most of it though to the five minute where did this one end it ended right here so let's see if we filled at least most of it see we got super close to it bam guys I don't even know what to tell you guys a lot of times literally playing the 50% levels playing the shorts below 50% is the most probabilities you're going to have in trades literally okay it's the same concept when it comes to uh trying to play the supply 50% and we're going to talk about that right now too so now we just talked about demand and now let's talk about Supply and see what's going on here here with supply all right so Supply okay and we're going to talk about that so in the supply Zone you're looking at it from the bottom to the top okay um you're going to have your Zone over here right you're obviously going to have three levels to this and these levels reverse so you're going to have one two and three but in this case now they have different properties what are those properties and how are we going to use these so this is going to be considered in a supply Zone number one we have number two and then we have the middle which is our psych psychological level okay so in a supply Zone we're looking at it from this perspective right um let's find a supply Zone here let's just say let's find a good one going to 30 minute we have a good one right here perect form we're going to stay in this area actually so perfect Supply Zone there okay we have a 30 minute Supply Zone there in this situation now we're shorting at the bottom so in a supply Zone we we need to be short over here before in a demand Zone we're also short in this area right but and we're long at the top as well right but in a supply zone right we are shorting only in this area right like we're we're we're coming in and we're shorting okay 50% retest we're shorting okay so we're we're shorting shorting shorting shorting shorting shorting okay it's very different for Supply okay we do want to be able to short and when it comes to demand we're longing at the top right so if we break this 50% it's the same concept we can play the Longs okay and play it to the Top If we get especially we get that retest and then continuation to the upside we can play a Top Again in some circumstances just leave the zone right cuz if we go far from it and we create other zones just delete it at that point but we might break it come back bounce at 50% and then bounce right and in that situation leave the zone and see what happens right so again it's just so simple especially playing these 50% levels okay so let's see if we can find another Supply Zone here okay doesn't look like it we have a demand Zone okay we're just going to play both we have a looks like we have a split and we can play Longs into that and looks like we formed another split but I would consider this my split right now because this is where buyers buyers are trying to come in so let's see if this candle closes like that yep that's a split so I could either play Longs I could play shorts at the break to fill the imbalance down here the reason I didn't mark the split up here though again is because I'm not really going for short little fil you know I'm not going to go oh that's 91 tick D I could do that too right but the split again these are two tight candles together it's not confirming the split yet this is confirmed the split because they're separated look one and over here right so that's more of a split than the top now we break here we can play the short fill them imbalance come on baby F inbalance no is this a fake out could be a fake out o ooh going be a fake out we're retesting the top so now at this point we have to be careful because this became a split now so now we're in the range this is called the chop you can easily get chopped up here and we can easily come to the top so now we got to be careful at this point you would just want to get out of your position or say your stop loss obviously we're playing replay mode so we're doing it very differently okay so at this point again we break the top there we're probably going to fill that and balance the upside okay let's see split split split baby come on come on fill fill fill to the upside at least into 50% let's see what we can do at 50% level one there okay let's just take this trade out um level one there okay and that's why I say losses don't matter okay especially with this strategy losses don't matter okay it's just about uh being consistent and finding out what you want to do and so on right so now we just want to see if we can find a 50% area that we can play maybe a short off of right so I'm going to go into 30 minute and then kind of just explain um what we would do in this situation specifically right there's a lot of zones over here that we could potentially go into so let's see we have a 30 minute anywhere or 15 minute even uh if we had a 50 minute anywhere we do have 50 minutes but they're not they're they're still yet to be used right so we're still waiting on those to be used and we're still waiting all those Supply on top to be used as well so we haven't been using any Supply yet let's see we have a 5 minute that we haven't used or we're going to use so it doesn't look like it so we're just going to go back see if we have anything that we could potentially Mark out uh okay so I see a zone right here okay so same same concept check this out right right we have a 50 minute there we have the aoi down here this is a very nice Zone okay let's see what happens when we go into that zone do we break 50% or do we go above right so again it's the same concept right we try to reject 50% what ends up happening here right we break through AI we we go to property one exactly what we talked about in the split video this gets invalidated uh but next time we come coming to 50% we try to reject we even fake out of 50% but eventually we break through indicating that we could take that long all right so that break through would have been very nice and obviously came all the way up and then we went back under right where again if you went back under what did we talk about earlier waiting for the Zone we might just go back into it and we can play the short right and in this case we came back into it retested 50% and then we fell right and then now it's invalidated now we want to find something new now if you find something newer obviously Mark that newer thing right but again we're playing either long or short 50% levels okay very important Concepts guys you guys can have a lot of success with this if you learn how to use this strategy the right way okay so if you have any questions just let me know you know go kill it out there 50% levels imbalances is what we need to be looking for