Transcript for:
The Invisible Zone & Double Valid Pullbacks, V1

all right welcome um I am magma have some theories that have led me to believe I may have found more clear and quantitative and consistent answers per the request of everybody and their mother I'm making this video to go over three concepts the double valid pullbacks the higher time frame pois and the invisible Zone uh which is the meat and potatoes of all of it I actually get most my higher time frame pois from the invisible Zone but there are higher time frame pois that do occur um outside of that I did take a short here because of the double valid pullback and because we were in this higher time frame POI I think what I did was took an entry uh once we crossed right here yeah once we crossed right here and then the stop loss ended up being seven points so not bad the real good stuff is over here on these double valid pullbacks that occur on higher time frame pois so let's just get into these uh one by one double valid pullbacks those refer to Candlestick structure first thing I should say real quick is that I am a believer that if you are like fairly new not even just fairly new even if you've been doing this for years but you are not professional meaning you're not at least at the level where you're able to pay all of your bills consistently with trading then you should not be trading the seconds time frame I don't even have the seconds time frame it's right here but if I click it it says I need to subscribe even though I am profitable don't really have the experience under my belt I don't feel like it's a very uh a very safe bet to be doing that early on when you're just trying to learn how to read price and write narratives you need to be able to see it happen with enough time to react to it otherwise you're going to be making a lot of mistakes and you're going to be thinking that the market is lying to you when it's not in general but in the lower time frames perhap it perhaps it is on the 5sec or the 15 second or the 1 second you might see a double valid pullback in your POI but you know then you get Wicked out or you get a closure above and so you go long and then it takes you out because on the higher time frame on the 1 minute or the 12 minute it was just a wick like I'm not knocking the seconds time frame um I just think that the use for the seconds time frame should be for people who they are so so good and advanced that they were making unlimited money on the higher time frame and they now want to spend less time in the market and make the same amount of money you're looking for the structure on the on the 12 minute and you're looking for the confirmations on the 1 minute rather than looking for structure on the one minute and looking for confirmations on the 5sec let's talk about a double valid pullback so first of all if we want to find a double valid pullback uh we need to first know what a pullback is in general you know to find the double valid pullback you need a single Val solid pullback first right so we see price is moving up here a pullback is what establishes a high or a low not necessarily A protected low or high but uh at least a valid one so for instance we have a high right here because we have closed below it if we never closed below this entire candle then this isn't considered a high a valid pullback occurs when you get a closure below the highest point of the leg up here this is the highest point of this leg this is a pullback right here if you have any prior knowledge about valid pullbacks or double valid pullbacks and you've been in my group for a little while and you've heard me talk about it you might be looking at this thinking well what the hell is this magma this is a double valid pullback and we should have gone short but then it failed the problem is is that we're not in a higher time frame POI so if you're just using your one minute time frame yeah you're going to get screwed right when we close below this and get the double valid pull back and you set your stop there and you set your taret Target right here at this internal low boom you're run through that is because there's nothing to the left right there there's nothing here nothing right here so why would a double valid pullback mean that price is going to turn around it just doesn't I'll go over a couple examples of a pullback here's the highest point of the leg here is a closure below it that is one pullback for instance here is the highest point of the leg no closure below it so no pullback right once we get into this higher time frame point of Interest we see the highest point of the leg right here and then we see a closure a body closure below the candle that puts in the highest point that is pullback number one we close this candle and then again we put in this high right here so let's get rid of this one and then over here we close below it which is why our entry is right there that's the entry right there once we cross this line here with a closure and then we're writing price down to a few different points points one two uh one of the people in my group took this down to 67 points today while I was on live shorting it myself as well which is super exciting and I think actually someone else who wasn't even on the live who I explained double valid Concepts to last night took the short as well which is just incredible as you can see it works really well so the idea here the same thing we're going for two valid pullbacks in our POI so here we have our poi and then here we have the double valid pullback we have failures to make the double valid pullback over here look we have a high but we never close below it so it's not an actual high so it's not an actual pullback we have one here but that closes above it right here once it closes we have to restart and look for a counter to restart so you're looking for two valid pullbacks in a row uh to occur before you get a closure above the latest High right here we have this High established let me just clean this up real quick hang on we have a high established because it's the highest point of the leg and because we close below it once we close below this we're looking for the next highest candle to close we want it to close below this this is okay this Wick out is okay this is something that a lot of people are asking questions about in the chat today it's okay for this to have a wick above it you are watching for the closure once this puts in this high here and we have this candle here we're looking for a closure below the highest point of this leg right here once this closes below it this is a pullback which means this is a high and that means that this is a high that failed to close Above This high and when we have a failure to close above the high a double valid pullback we have a failure to close above the high we should expect the low to get run and your target is at the low in terms at least so you can I mean obviously you could get like way more out of that I knew that this was a turning point for price to bounce because it also came from a higher time frame POI I called 200 points yesterday of course I would like to talk about that right why wouldn't I I think it was at 58 maybe 1158 56 I don't remember basically said If you close above 78125 you can hop in and hold that to the Moon I'll show you guys so you believe me because I know that this is important stuff for people so 1053 which is I'm central time so it's 1153 1153 right here I saw that we were establishing a little bit of a low here close over 78125 is higher low uh and then I said some about before that if higher low confirmed ride that until the moon up top so once we close above here the higher low gets established and the entry was market and the stop was down here ended up going 200 coins which in my opinion really is to the Moon I mean that's that's a substantial amount of money even for just one contract as a runner that's a $44,000 contract let's talk about how this happened so I think I actually wrote a story about how it happened let's go through it I was gloating I said you can hold it to the moon and had only got 75 points at that time I said let's break down what happened so first thing is on the 12 minute we failed to take the high up top right right here so we ended up running lower because we failed to take the high up top we ended up running lower price was marching down and then we entered into a POI a couple pois one was right here where we bounced another was right here so we were very close to these point of interest and I'm calling these pois they're part of the invisible zone model uh which I will be going over on this video as well price peaked out but failed to close if you zoom in here price is coming down and then we get uh another little break down here on the same leg we set a new low and we go and we break the high that we came from which to me screams that this is a range that we've uh established a very small range that we've established and we could have possibly just stepped out of the range on both sides at the same time I'm looking for a new low to close above our established low uh that would give me a higher low because of the double valid pullback here's pullback number one here is pullback number two and then we go up so now because of this the next thing we want to see is the low get run so when we see this come fail to take this High we want to see the low get run for price to continue down we want to we expect to see the low get run it doesn't get run right price doesn't get run then we make a pullback above this low this is a low because we have this low put in and then we have the candle that put this low point in is closed above that makes it a valid pullback that makes it a valid low that makes this a failure to come and take this low because we get a valid pull back here here now we have a low that occurred above the low that we needed to see get run so we wanted to see this low get run but it didn't and we know it didn't we know it failed because we closed right here if this candle didn't close let's say it Wick You' most likely see price come even lower we know that because we closed above this this is a pullback which makes this a valid low not protected low necessarily but it is a valid low it's not protected until it runs the high it came from but it is a valid low right now if the high that made that failure low is about to get clapped so this would be the high that failed to take the low right this High failed to take this low so we know at the very least this is going to get taken out once we cross here know the very so this is tp1 and then obviously you've got another runner up higher for the external God this is like really hard to explain when I can't be there with people to let them ask questions okay here's a good example so for instance um this is an invisible Zone markout uh and so is this as well so let's zoom in and see what happens so we have a we have a 12-minute POI and then let's let's look what happens on the one minute on the Candlestick structure very zoomed in so price comes down this is the lowest point and we need to see a closure above here price closes above here comes and makes this other low Point here and then it closes above that which means now we know that we have a failure to come take this low we get a valid pullback that occurs above this pullback this is a pullback so this is a low not a protected low yet but it's a valid low and then we have have another valid low here and we have a higher valid low when you have higher lows you expect higher highs right so once we close there right on this candle we expect this to work out for us this is very common to see price come up for the first scalp and then come for the second touch and we put in this low we know it's a low because we close and then we put in another low point with this red candle and then we close above it and then we can take our entry at Market or you can wait hoping that it comes down I like the market entry though ESP especially when you only have to take like 7 and 1/2 points of draw down and this all started because you know we had a double touch at our higher time frame POI and then we had a second double valid pullback right here and yeah I mean the rest is history right here is our lowest point of this leg right here and we get a closure so that's one pullback and then here is this lowest point of this leg and we get a closure and so once we get that closure we can enter obviously lots of risk on the table when you're using the 12 minute you want to refine this but just don't pay attention to the points imagine that's not the instance right cuz we're looking for this High I love taking profits early if you're in my group or have been for a while you know that I'm crazy about doing that we bounce we do a valid pullback right here we do a valid pullback right here and if you were to Market enter and have your stop here you would be fine typically when price is so far away from where it bounced I do like to wait for a double valid pullback to occur after sure this is established here don't count the first pullback from that happens on the bounce count them here so one right and then we have a low get put in here and then once we see a closure above it which doesn't happen until right here you could watch for an entry from the last failure this is a little invisible Zone thing but I'm going to talk about the invisible Zone in just a second here oh look at that how seems impossible right I mean I just eyeballed that from a bird's eye view I didn't even look really in detail over here and scope out a zone or whatever right so what happened here was the invisible Zone but let's zoom in and find the POI and let's just extend this out that way we know we're so we did Wick into it which is great that's what you want to see final double valid pullback then I'll shut up about it we'll talk about the invisible zone I'm sorry someone asked me about this I think it was NAB if you get a pullback right here and the next candle closes it and then you get another little down candle and then you close above it is that considered a second second valid pullback yes that is once you close there you can Market enter there the second touch provides opportunity too though we have our low here that we need to get below but we fail to and then we close above the candle uh that fails to we come a little bit lower and then we close above that candle and then we can take our entry and we can Target um the bottom of the highest candle here which is what I always use I know everyone sees me do that a lot this is kind of wait my bad this stop loss is wrong the stop loss is below stop loss goes below this one below the second pullback okay we're done with the valid pullbacks next thing we're covering is the invisible zone so how did I draw this out here I drew this out between our protected low to the left I'm considering this protected low because it broke this structure right here it's a pretty damn responsible low I call the responsible low actually on the way down I'm anchoring from the responsible low to recent failur and so here I'm anchoring to this recent failure and when I say failure I mean a low that failed to send price to take the high here's our high we come down we make this low and then we fail to make a high right so right so that's where I draw this out from the responsible low to the most recent failure which is I think I put it a tick high on the blue line the first invisible zone so you go from responsible to your first failure which is right here why did I put that there because this this is the first failure first time we see a failure on this whole climb we put in a high we pull back we put in a low then we fail to take the high so we're dragging from here to here and then this is where we look for price to bounce that's bounce number one and then bounce number two happens from the low so then it just follows the most recent failures it often times will repeat itself so you get this first bounce here and then it doesn't come below and so because it does not come below we do expect it to run the high that it came from when we're getting this low and we're break when you see that we've broken this low we shift gears and we look down to the left so when we break the low that we've been basing our invisible Zone placements off of our responsible low we're going to go and look down to the left to our next low I often find that it is between the what I call the low hanger and the low down to the left I know it sounds made up right now but trust me I'll show tons of examples of it often times once we break this responsible low we get a double bottom and then we go pretty damn high and then you can actually see it repeat itself on the higher time frame we have this respons below we have our first so we get a bounce here so we never break below it until we do right once we do break below it we're anchoring to our most recent failure I said our first one is the first failure our second one is the most recent failure which is right here you zoom in on the one minute flip occurrence happen right here and you can take your longs it comes back you take another long now looks like we're failing to get out of here and if we do come and break this low here let's see if we do so if we break this low we're going to look down to left right now this zone is moving it's migrating from here to here why cuz this is a failure low this low failed to get us out of here so we're going to base the responsible low with the failure low that's how we anchor them and then maybe look for a flip here so we get one and obviously you would want to zoom in on the 1 minute to be able to identify this as you can see on the 12 minute it's probably going to be very identifiable if I go to the one minute I'm going to start ranting about double valid pullbacks and I'm sorry you're just going to take my word for it this is the line I just drew that's where we bounced imagine you can get along let's say like right here or something so we do get a bounce there let's see how strong the bounce uh is as you guys can see by the way this is no sweat what I'm doing here is no sweat you may have just seen that and thought Oh my God he didn't even look over here like it's it's it's real I'm going to say until I die and people are going to think I'm crazy and they're never going to want to do it they're not going to make the 78 Point move we did today or the 200 point we did yesterday with ease because they don't want to believe in The Invisible Zone cuz it sounds ridiculous you know what I find ridiculous people trading for multiple years and not being profitable so this is real I'm showing you you've seen it bounce every time zooming out here's a even better example let's go with maybe this one or this one it's sometimes hard to tell which ones as you see price get into this area where looking for the uh bullish Behavior to begin on the lower time frame price gets into this area and it you know just full sends honestly so our low to our recent failure price came down it failed to come and take the high failed to go back up we expect price to come down here and then it just goes man look at that that's insane right so let's look for an invisible Zone example here now now we're going to currently be anchoring here and our anchors are first failure so we do get some bounce down and then our second anchor occurs right here and we touch here and we do get a bounce down and then our third anchor would then occur right here so if we don't bounce here then we could expect price to come into this area so we don't bounce we run it and then price comes up there and then it look looks like it does give a little bounce for 230 points so even in a very strong bull market we're able to identify where some bounces are going to come from so we talked about the invisible Zone a little bit I will touch on it some more before the end of the video don't worry let's talk about higher time frame pois pois means point of Interest based on you know pattern recognition and historical data that's where we look for price to bounce I would be able to identify higher time frame pois by the invisible Zone and by looking at Candlestick structure when we get to certain highs and lows so for instance when we get up here to try to take this high and we get a double failure this high is a POI for me this this actually does appear on the 12 minute as a spike and right here is a double valid pullback and so that's why you know don't don't let me start on the double valid pullback but we put it up we put another one up and it's lower than this one and we close below it once you close below it on that you can take your Market put your stop there and you can short the low that's a double valid pullback that occurred in a higher time frame POI because look at the 12 minute what we were just looking at occurred right here for the double valid pullback to occur within it and it does and you take your short so the high becomes a POI becomes a point of interest because we're interested in it why are we interested in it because price makes decisions at highs and lows price comes up here and are we going to take it we don't know let's see POI we're just watching when we get a flip like we're hoping for so that we can participate we get a double valid pullback we enter our short and uh the rest is history once we get down here to this POI clearly it's at these lows I'm drawing this not for it to just touch the line right I'm drawing a I'm drawing a Zone you have to remember that the Zone claims to expect to break these but respect these The Zone claims to break this but respect this and so we're looking for the flip in here the closer we get the stronger the Confluence right if we start to get a flip up here I might not take it but this close we're pretty damn close right here that's enough for me we did take this trade I'll tell you that I wasn't I don't think I was the only one the first bounce comes from your low to your first failure which occurs here and we see price bounces here for a pretty juicy long I believe the same thing is happening here though we have the responsible low we have our first failure we have 50% and we get a bounce a double tap and another long this one's good so we have our low and we have our failure here and we have a bounce and we have our low we have our failure here and and we have a bounce it even comes between these which is good cuz this is technically the actual first failure if you think about it and then it repeats itself we have a low here we have a failure here so we expect a bounce right here our low our failure 50% this one gave about oh yeah it was a that's a wick right there that's 100 points our low down here we've got our low hanger right here so let's just let Price play out if you zoom in on you're on the 12 minute here you can see right here uh you would be able to find a bounce on the one minute and you'd be able to get 61 points out of it which pays the bills at the very least and then we're going to Anchor to the lower one right here and see if we can get a bounce there which we get a double touch why did we move it because we were here and then we anchored to our next one which is our failure right here our failure to break up to the upside We Touch oh yeah plenty of points I don't know if you can see the invisible Zone um occurring on the lower time frame well just like more zoomed in but there's one there one there so we're anchoring from here to here and from here to here now if it does come and break below this low then that's when we look for price to uh anchor from here to the most recent failure so that would would go down to the left I just played price out a little bit but I started having a coughing fit price will come down and break through this low once we see this low get broken we want to Anchor to the failure low which is right here the most recent failure low so we're now anchored from the low down to the left to our most recent failure low and that's where we expect to see another bounce and it looks like it did give another 120 or so so anyways that basically sums it up we have the Discord group I'm trying to look into getting it more organized and kind of in more of like a systematic approach that way we can get everyone the uh the help that they need um and be able to allocate more of my time uh to it have to work on getting it a little bit more organized as well this is how I trade to sum it up I use invisible zones to Mark out my higher time frame pois and I look for double valid pullbacks on the one minute to confirm the reverse the double valid pullback happens in the higher time frame POI and the higher time frame POI comes from the invisible Zone you can get higher time frame pois from other places like I said I did take that short based off of this hidden snd here today once I saw on the one minute the flip so higher time frame pois doesn't just apply to the invisible Zone but it's very very helpful as you can see my Discord is magma P I believe that that's my Twitter as well magma P so I don't really post much on there but I probably will in the future future you know look at cam today two trades two four contracts right I thought it was just two contracts but and then still 100% win rate we had anesthetic looks like he had a 100% win rate as well DJ a said he was using the invisible Zone all day and on on a real live account and just raking in the dough profitable day following magma zones yeah so just all kinds of good stuff going on here and I'll probably start to post more about about that on Twitter all right guys so that's basically it for now um I'll make a part two sometime once I can collect more questions from everybody I'll make a video basically just answering all those specific questions um but until then have a good day see you