Okay folks, welcome back. We are looking at price action model number five. This is a session day trading model.
And we're going to be specifically dealing with intraday volatility expansions. Okay, so day trading, intraday volatility expansions. This model is going to be dealing with the stage being higher time frame liquidity draws. That means we're going to be focusing on a directional bias. Our setup is going to be intraday volatility expansions, and the pattern we're using is session swings with utilization of power three.
Okay, so. For internalization of this model, this is what I want you to kind of see because this is what I saw going into this week. We just completed. You'll see, obviously, some more details explained in our market review on the following week's Monday.
So we're looking at the. British pound. Okay, so this is the pound, and my expectation is that we're going to be trying to draw down into that 130.54, 130.55 in that area, maybe 130.50 relative to the daily chart.
Now, if you've been following all this time through our market reviews and our weekly commentary, you've been... well informed in terms of where I thought that British pound would drop down to. So that's our long-term daily interbank liquidity draw. Okay, so where price is ultimately seeking to go, that's where my focus has been leading us all in terms of a collective whole, in terms of anticipating where the direction of the price is going for cable.
But... We're going to be looking at the effects and influences of other areas of liquidity and how that is going to deter and create new opportunities. Okay, so this model is going to be flexible in terms of trading the intraday sessions.
It's not so much that it's trading the daily range itself in its entirety or that we're trying to trade the entire weekly range, which would be outside the scope of this model. What I'm trying to teach is there's a framework in which you can use to trade the individual trading sessions. That is an example, the London Open Kill Zone, the New York Open Kill Zone.
Okay, primarily there's two. Now you can obviously use these with the Asian session if you want to trade that for North American traders that don't have access to intraday trading or can't get up early enough to trade London because of their day job. The strength of this model is primarily in the London and New York session. So just know that going in, you're not going to get as good a result, even in your back testing, if you try to trade outside of those parameters.
Now, the model itself is not day specific, but from a kind of like showing you my cards type thing. I prefer to trade this on Monday, Tuesday, or Wednesday. Okay, now, obviously, as I'm going to give you an example, this session, there's a reason why I elected not to hold for the weekly range this week.
And you'll see some of these characteristics as to why. And it's also meant to help you. fill in some gaps along the way with your other models that we've already shared and for future trading models that we're going to be teaching.
I got a question before I go any further. Am I only going to be teaching 12 models? No, you're going to get a lot. more information as we continue. Every year, I'm going to have more content and more things to build your understanding.
So we're not just limiting our perspective, if you will, to just 12 models. There's a litany of different approaches you can use once you understand price action. And just a handful of the things I've taught you in the mentorship, you can do a lot of wonderful things in terms of building your own model.
Again, I've got emails from folks that already came to the conclusion that they've already seen their model so far and they're running with it. And that's great. You know, I promised that was probably going to happen for some of you and for others that won't probably happen.
OK, and don't let that frustrate you, because if it's happening right now and you feel that frustration, you're not submitting to the process. You have to go through the entire 12 models. I promise you, even if you don't elect to use one of the specific models, they will give you a foundation or a framework to advance to eventually getting to your own. OK, the models I'm choosing are not sporadic.
They're not by chance. OK, these are models that will help you springboard into a better understanding about price action, better understanding about you as the trader and where you want to be focusing in it. And more details about some of the things that were taught in the mentorship.
OK, so it's kind of like a comprehensive like here's what we're going to do with all this information, basically. Alright, so this model, again, I'm focusing primarily on looking for session intraday trading. Now, I'm not trying to trade the entire daily range. I'm looking for a move in London or a move in New York. That's it.
The framework on this... If we look at this chart here, and we were only given this much information, if you will, obviously I don't have the chart zoomed out, but for the benefit of those that have been following the live sessions, you know why that 130.54, 130.55 level would be indicated. In fact, I'll just tell you what it is. It's the rejection block on the equal lows.
that we have been looking at, and then we have a sell stop liquidity pool resting below that. Okay, so we also have a mid-figure level that would be consideration down there as well, which would be 130.50, but I'm electing to use that 130.54. That has been always, for months now, the level I have personally been looking at in my own charts, but I've been drawing everyone's attention to those equal lows for a liquidity pool of sell stops. Okay, so nonetheless, don't get...
distracted by a couple number of pips, okay, the whole context is where we are presently and where that level is, whether it was at 130.50, 130.55, or 130.40 even, okay? It doesn't matter because that's still a draw on liquidity that's just a long term. I get emails asking me, you know, why if I'm looking at the daily chart, I'm off by five or six pips and you're...
getting concerned about that. That's nothing to get concerned about. Absolutely no reason to get concerned about that. In fact, that's normal. Everyone's data is going to be slightly skewed and it's something that's reasonable.
So don't think that you have to have the exact dialed in level that I'm anticipating, because we're all going to think differently. We're all going to see things to some degree differently, even though we've gone through the mentorship together collectively. There's always going to be this deviation from what the mean is. In other words... If I think that the normal would be a range of 10 pips, it's not unheard of to anticipate a large number of you looking at 15 pips or 12 pips outside of that scope.
And overall, that's not going to break anything. Okay, so don't. Don't try to split hairs, okay? When I mention things that are very highly specific and do this and only do it this way, focus like that.
But if I haven't said that about anything or the things that you're very concerned about, then don't. Okay, because you're just adding more stress and anxiety that's not needed. Okay.
All right, so we're looking at a daily chart. This is the British pound versus the U.S. dollar. And I have the information noted here that is of importance.
The next daily range, okay, what's being shown here is up to the Monday of the current present week of this presentation. And the anticipation is we're going to be looking for a drawdown into that 130.54 level. That's what I was looking for specifically.
But we can't ignore that previous low at 132.06. Okay, so what's going to be resting below that 132.06 level? Sell stops, okay, in the form of a breakout artist. They want to sell short if it breaks down, or those that have went long and had that ride up to around $134.50-ish or whatever, then had to sit through this drawdown.
Their sell stops are resting below that 132.06 level. So we have a liquidity pool resting below there. Okay, so there's a draw on liquidity on the very near term at 132.06 or below it. Okay, so be mindful of that. Even though I draw attention to the daily chart many times, kind of keeping you in line with the interbank perspective.
Don't lose sight that there's going to always be these smaller periods at which the market can turn. Now, it doesn't have to imply a complete and utter reversal. It just many times will create opportunities for new short-term or intraday trades. And many times it can change the weekly range.
to something other than what I had anticipated. Okay? So we're going to build on this information as we go. All right, so again, day trading, the intraday volatility expansions, and when we're looking for bullish scenarios, what we're anticipating is the opening in this perspective, and this is kind of like an internal dialogue in how I visualize it.
The range here is only... delineating what would be seen as a session. So if we encapsulated the entire London session or the New York session from the beginning point at the kill zone and when the kill zone ends, that would be what I'm internalizing in terms of these crude depictions of a candle. So if it's the daily range and or session range, ideally we're going to be looking for a bullish and we would anticipate that same scope in terms of upside expansion on the London kill zone and or the New York kill zone. Okay, targeting a rejection block above market price, a buy-sell liquidity pool.
Now, because it says on the daily here, don't lose sight that we could also be looking for intraday or intraweek equal highs. Okay, so that may be a PDA that may be of importance, okay, and why the market should expand up to that price point. Everything, obviously, is being reversed here for when the market's bearish, and we have an anticipation for the daily range and or session range. Okay, being bearish, we'll be targeting equal lows on the daily and or an intraday equal low, okay, or sell-stop liquidity pool that either is on the daily. Now, if you remember, before I changed this slide, I was showing you that 132.06 level.
That would be, in this case here, looking at the bearish scenario here, we have a sell-stop liquidity pool resting at 132.06. And then obviously as we push lower, a rejection block also could be a catalyst for a discount array. Okay, now the logic behind this is kind of like I want to build your understanding of why we're even considering this model at all.
You're also going to find that this model actually complements a lot of other models that you'll learn and ones that have already been taught to you. And also it will help you fill in some gaps as it relates to standard deviations, when to use the FLOW, when to use the central bank dealer's range and or the Asian range for deviations. All right, so the logic behind this is the daily chart will highlight the most probable draw on liquidity.
Again, that's where directional premise comes in, okay, or bias. This is where price is most apt to trade to and over the near-term horizon, that is. Now, using this directional bias. we can anticipate the daily ranges expanding in that same direction.
Now, if the draw is below current price of the market right now, the daily ranges will open near the high and close near the low. Now, but it's important to understand that because we're day trading or session trading inside intraday price action, we do not require the close on the daily range to be down. Closing basis, if you will, to find profitable setups.
In other words, all we're looking for is the expansion in the direction of the daily move that we anticipate seeing based on and linked to the daily draw. Okay, so whatever those equal lows or where we think institutional price is being pushed. Okay, all those.
Heavy flows that we'd like to trade behind or get to get on the back of we're trying to trade in that same direction But we're anticipating the intraday moves in that same capacity not just Holding for the daily range, but we're trading intraday price moves per session London open New York open, okay Now again, it's important. We do not require the close to be on a closing basis lower than the opening or near the low to find profitable setups. Now, obviously, everything I said here is reverse when we're referring to periods when the draw is above current market price. Okay, continuing on with the logic behind this model, the daily range expansion, okay, referring to the daily chart and candle itself, will be in the same direction of the daily draw.
Okay, so where we think institutional order flow is leading price, okay, we're going to be anticipating the daily ranges. not every single day is it going to do this, obviously, but over a large sample size of data, we'll see primarily the biggest range in expansions will be in that direction. Okay, that's what I'm referring to here. This aids in anticipation and expecting the intraday session volatility each day.
Now, if the draw is above the current market price, we expect daily ranges to expand higher, and with this, we expect that London and or New York sessions to move in that fashion. We would look for buy setups and expansion objectives found higher by using standard deviations with intraday volatility concepts. The reverse is said for periods where the daily draw is below current market price. When you're looking at the central bank dealer's range, The ideal consideration is when the range between 4 p.m. and New York time and 8 p.m.
and New York time is found to be a clear discernible trading range, not trending. Okay, what do I mean by that? If we've had a early afternoon consolidation, say around 10 o'clock in the morning, price has stalled, it's been going up, looks like a trending move or trending day, then consolidated and didn't go any higher. Then if we start seeing expansion. between these time periods, between 4 p.m.
and 8 p.m. New York time, then it's probably not a good idea to use a central bank dealer's range. The ideal range of pips is above 15 pips to be considered. So if the range is less than 15 pips, do not use a central bank dealer's range for expansion objectives. And I'll explain as we go on why that's important.
The Asian range count, again, the ideal consideration is when the range between 8 p.m. New York time and midnight New York time is found to be in a clear discernible trading range. Again, same situation in terms of defining what is it that makes it a range and not trending was mentioned in the central bank dealers range portion just a moment ago. The ideal range of pips is 20 plus pips to be considered. Okay, and I'll say that again.
When using the Asian range, the ideal range of the Asian range for consideration is 20 pips or more. We don't like to use it when it's more than 40 pips. If it's more than 40 pips, then, you know, in the next slide we'll use that information there too. But in terms of considering the Asian range, ideal scenarios are it's got to be greater than 20 pips. Okay.
So if the range is less than 20 pips, do not use the Asian range for expansion objectives. You like to use the flout. Alright, the flout count.
Ideal consideration is when the range on both the Central Bank Dealers Range and or the Asian Range are not favorable. We've already went over those parameters as to what leads it not to be a favorable consideration. The ideal range of PIPs is not limited as we will use the 4 p.m. Eastern Time or 4 p.m.
New York Time to midnight New York Time range and expand on this range in multiples of 50% increments. And for that. Basically, you got to go back into mentorship and see what I mean by that. I'm not reteaching FLOW here, okay?
All right, the previous day and intraday open float. Implementation. intraday volatility expansion levels should be coupled with logical levels of short-term liquidity pools. That is to say, expansion levels that overlap with previous day's highs or lows and previous intraday high or low should be coupled with logical levels of short-term liquidity pools. That could be in the form of intra-week or the same trading day you're looking at right now.
A perfect example would be looking at London's high and low when trading the New York session of the same trading day. When you consider these, you'll find that they have more probability of finding success and accuracy. Confluences of open float, time, and standard deviation expansions.
The goal of this model is to focus on periods where a directional bias can be derived and targeting specific times of the day where price will likely experience volatility expansions in the same direction. Blending liquidity markers with time of day and standard deviations. And in today, volatility expansions is the framework of this price action model strength.
Okay, so going back to our example, showing you how to use this specific model, I'm taking a great deal of liberty on... When doing this model, that you understand how you're going to select your entry pattern, okay, your specific entry technique. Now, that could be optimal trade entry. It could be turtle soup. It could be trading fair value gaps.
It could be trading in the breakers. It could be trading standard order block theory, trading above the opening price when selling short or buying below the opening price when trying to go long. Any one of those models, okay, is. you don't have to have any one specific one. So if I fail to mention a specific criteria for entry, don't think that your approach would not fit in this model.
You're going to find that this model is actually teaching you more about intraday volatility and daily highs and lows and weekly highs and lows. That's kind of like I'm building on that model. Because with this insight, you can use a lot of the other models that you've been taught and the ones that's being taught in the future to really complement it. So, again, we're back on the daily chart here.
We're zoomed in. The premise is we have identified that previous low at 13206 pound versus dollar. And the next trading day that hasn't painted on the daily chart would be Tuesday.
So we have day of week phenomenon. Okay. So even though. This could potentially be a barn burner of a down move for the week or the weekly range being exceedingly lower. I am not considering that because I may just get a run down to that 132.06 level, run the liquidity below that, and it may just consolidate.
Or it could reverse. Okay? So we have to be mindful of that. And I want to be taking trades on Tuesday in the London session that would lead to potentially a rundown to that 132.06. But I am completely comfortable with missing the move at 130.50 or 130.54 in this case because the model focuses primarily on scalping intraday sessions.
So, again, I'm not trying to teach you to be in awe. models or try to be a swing trader or short-term trader when your Psyche is really aimed at being a intraday trader or scalper Okay, so we see here on Tuesday the candle itself opens it trades up a little little bit goes back into the bearish order block which is the third count to the left of Tuesday's candle up close candle that's a bearish order block trades up into that creating a Judas swing and then the expansion on the downside Notice that we dropped under the old low. Okay, so 132.06, that liquidity pool has been dipped into.
It has been exhausted. Now, I don't know if it's going to continuously move lower down to 130.50. I don't know that. I don't know that for certain, especially if there is a. opposing view in the dollar index.
Now, obviously, with the benefit of those individuals that have been following along in my weekly commentary, you know that we have been following. There's been an equal high that we've been targeting for buy-set liquidity, and I mentioned that that's something we have to be mindful of. So if it trades up to that level, okay, and we'll find specifics about that in a couple minutes when we get to that slide, that may be a catalyst that creates a near-term Pause or reversal in 130.50s don't have to be traded yet. Okay, so you have to be mindful. I also mentioned last week's commentary that we're entering a period where cable itself could see something in terms of bullishness and weakness in the dollar in terms of seasonal tendencies.
So that's the reason why I used this model, and if you look at the trade I showed on Twitter and also through the forum, the reasons why that was only a day trade is because of the things I'm outlining here. Okay, and those conditions are shown here with the dollar index. The monthly bearish order block, which starts at 95.47, and I'll counsel you to go out to your monthly charts and look at that. You'll see what I'm referring to.
That's the opening price. And then trading up into that, we have equal highs. That's been shown on the 19th and 20th of the dollar index, and we rallied up above that approximately 30 pips or so.
or 20 pips rather, 20 pips, and also reaching up into that monthly order block. So at the same time, it's trading into it on a Thursday. Now, think in terms of weekly profiles.
I gave you a Thursday reversal profile that can happen on like a FOMC type thing, but it doesn't have to happen with FOMC if it comes on the same parameters as we're showing here. Dollar index has been a barn burn. It's been going up, up, up, up, up. We've been in...
The whole way up, and now it has finally reached a level where it cleared those buy stops above 95.15 relative to the daily chart's equal highs. And we created equal highs on the 19th and the 20th of June. And then we expanded up into the monthly bearish order block.
So as it hits that, okay, we also know that that same movement, going back to the cable, it's now trading down below that 132.06 level. Okay, so now it's a suspect decline, and we have to be mindful that this could potentially stall or reverse. So if we're going to be going short on cable, the model is strong in this sense because it's trading just the sessions, and it's aiming for these periods of liquidity and also incorporating areas where higher time frame analysis concepts, while we aren't trading higher time frame long-term positions or swing, we are using the insights gleaned from that. content that we did in the mentorship to help us avoid holding on to a winning trade too long and having it reverse on us.
Okay, and again, I counsel you to go look at your dollar index charts, and you'll see the details that's being shown here. And go back over to commentary charts that we've shown in the weekly commentaries going forward. All right, now going into the cable, this is the 15-minute time frame, and I want to elect to focus primarily on the 15-minute time frame because when we're doing standard deviations, I get questioned a lot.
Do I transition from one time frame to the next when I'm doing the standard deviations? And the answer really is no. I want to stay in the 15-minute time frame because I like the 15-minute time frame.
It's kind of like a bellwether. Referring to the volume that's in the candles, it's better to focus, in my experience, to focus on the 15-minute time frame than, say, the hourly chart. So if you're looking at just the bodies of the ranges that we look for, for Central Bank Dealers Range, Asian Range, or Flout, they could skew your projections and expansion levels. Okay, so consistency I've found is as simple as using just a 15-minute time frame. Now, you're going to ask me, why is it specific to that time frame?
I don't know, personally. It's just... Over all my testing and trying to decipher what IPTA is trying to do on a day-by-day basis, I've seen the most consistency using the 15-minute time frame.
Now, you're going to look at other time frames and see that it will sometimes be more accurate to the PIP. I don't care about that. Okay, and as you're going to see.
The things that have been missing all through the tutorials and even through the mentorship, I'm getting ready to take you on a quantum leap here, okay? There's a lot of folks that think they understand central bank dealer's range, they think they understand these standard deviations, they think they understand IPTA, and they don't know it, okay? Trust me, you're about to see why. But we're going to look at the Tuesday setup, okay?
Tuesday is a really good day. We obviously know that the likelihood of creating a high of the week is still in that day of the week. It could be Monday.
It could be Tuesday or Wednesday. The long-term draw on this model has always been what we just mentioned on the daily chart, looking for the 50s. And it may not go down there, but we don't need it to because we're trading only into sessions.
So what we're saying is we're going to get in during the London Open sometime and get out towards the end of London Open or right before New York Open. Why? Because New York Open has typically what?
A reversal, a reload, and if it's going to go lower, it can, but it doesn't have to. Okay, so we were only trying to get the expansion. Okay, or the meat of the move, the lines portion of the move out of each trading session. So with that said, let's zero in on Tuesday here. And now we have our Central Bank Dealers Range times delineated here.
And I'm bracketing out the high and the low. Now I'm using the entire range here. Obviously using the rules, we go through this protocol of using the bodies. The benefit of doing both is you're going to be looking for confluences that I'll explain later on in this presentation. Okay, by doing a Central Bank Dealers Range using the Fibonacci Expansion Tool, I'm actually going to give you some more details about this in an advanced teaching.
So, let's see. That's going to be produced and released tomorrow. Okay, so just as you're watching this, just know that the advanced lesson, which will be found in the forum for June, the last lesson in June for advanced topics, that's the lesson I'm referring to.
So it won't be anything else that you could be confused by. We have the CinchMate dealer's range expansion levels here. deviation level of four okay comes right down to it and once we have our first lineup like this okay it creates the daily low what you have now is a inside advantage and I'm going to show you what I mean by that we're going to assume that you did something like I did where I traded the bear shorter block and I was trading above the opening price at new day That's like when you do your standard, you put a control button and tap Y on your MT4.
It'll create those little day dividers. Generally, it's showing it like 8 o'clock in the evening New York time. That's usually what it shows up, especially if you're using 4XLTD. That opening price is significant, much like the opening price at midnight in New York.
Those two opening prices are the ones that I like to watch, especially incorporating Power 3. You can see here on this Tuesday, perfect example of Power 3. And while I did not get the actual high, I didn't care. I didn't need to. I used other factors, which I've already outlined and gave in details. The way that I used the entry technique for that short, which was an actual trade, not just.
Speaking hypothetically, you can see where I got in and got out at. That whole framework was based on what I'm teaching you here. In addition, I get a lot of questions like this.
They'll say, ICT, your concepts can call the very high or the very low sometimes to that accuracy, but you're always getting out early, or you're getting in a little early, or you're getting out, I'm sorry, you're getting in a little late. Why not get those actual levels? And I'm going to be very honest with you. Over the years, I've taught myself to not try to be that dialed in.
And the reason why is this. If you start using this information and you start getting in like a pip or two off the highs and the lows, I promise you, I guarantee you, your broker is going to dump you. You're going to put you out the door and they're going to say that you did not say you were a professional because if you sign up and you open up an account, you either have to open up a professional or nonprofessional account. That's how they get you. Okay.
So most people, when they start trading, they're obviously not professionals, so they're going in as a nonprofessional. And if you start trading with these concepts and you start killing it and you're very, very precise and you do a lot of trading every single trading day, you will be pushed out the door. OK, it'll be thanks for playing.
See you later. OK. And yes, that does go on.
That's primarily the reason why I teach only try to look for one good set up per week and also to get out a little early because it's masking what I do. OK, so I knew I know invariably a couple of you hot shots in here are going to try to test this theory. OK, and I promise you this. Once you do it, you're going to have a hard time finding someone to broker for you. Trust me when I tell you this, it will happen.
Okay, it's very, very hard. It's kind of like a casino. You get caught counting cards, you're labeled, and they look for you.
Okay, and all the casinos will know who you are. Here, same thing. You do not want to kind of like give the impression that you know everything about what's going on. You don't want that.
In fact, it's probably a good idea for you to throw some trades once in a while, and that doesn't sound good. I know it probably goes in one ear. Great to your stomach and makes you feel sick, and now you want to turn me off.
But listen to me while I'm telling you. If you are very, very, very, very, very consistent, the best thing you can do is do low leverage trades and toss some for a while. You do not want your broker tracking you so close that they anticipate you being in at the highs and out at the lows three times a week. If you trade like that, I'm telling you. At some point, they're going to get tired of you taking their money, and out the door you'll go.
Okay, so it's very important you understand there's a reason why I do what I do. When I share my trades publicly on, like, Twitter or whatever, I don't always want to share where I'm entering and exiting. Because, number one, there's people out there thinking they know what they're doing and trying to... reverse engineer my trades and they think they've cracked the system.
Okay. I am entering in areas where it won't be logical. Sometimes I'm giving examples where it's exactly as it is, but there's going to be times where I'm entering a little early or I'm entering a little late because I'm hiding mentorship stuff. There's a group of people out there that think they know what they're doing just by looking at the things I share online. Only thing I'm trying to show is consistency.
I'm not teaching mentorship stuff through my trade examples. Okay, so there's a couple people that are just following me just for that very reason in the free membership area, and they're never going to get this. They believe they are, but they're never going to get it. Okay, so just know going forward, it's important for you not to be 99% accurate. It's good to be around 70% accurate and lose some still.
Okay, go in here with some trades on some off-the-wall time of day because if they see you always operating in a specific time, They want to feel like, okay, anybody can get lucky once in a while. So you want to lead them down the primrose lane, okay? And I hate to say it that way, but there's just no other way around it. Always mask your intentions as a trader. Always mask your real prowess.
Never, ever, ever stay as consistent as you want to believe you want to be now. You don't want that because it's not good for your career. You want to throw some. Do things that don't make any sense. You know?
You don't have to lose a lot of money, but you do have to show some losses more than you're willing to do. And it's something you're going to have to accept. And if you don't believe me and you want to be the hotshot that makes the Olympic feat of always being right, let's see how long you stay in the retail world because they will put you out the door. All right, now, keeping the levels from Tuesday on our chart, now we're going to plot.
for Central Bank Dealers Range for Wednesday. Now notice the range for Central Bank Dealers Range is less than 15 pips. Can you see that?
We can't use that range, but I have a deviation number 3 plotted here just to show you. That's what you would get. But I don't want to use this because the rules state that you have to have greater than 15 pips for Central Bank Dealers Range. So now we're going to use the Asian range, but notice it also is less than 20 pips.
Okay, and I'm showing you the standard deviation at level 3 for that one as well. Now, because both of those ranges are not meeting the minimum criteria, we have to use the flout. Okay, so we have the entire flout range, which is 20 to 4. relative times.
So we can see we have standard deviation of three with that one. That range of flout, we always take half of that. Okay. And then what I did was I used the upper portion or upper half of that.
FLOW range and I use the Fibonacci expansion tool as I'll teach you in the advanced teaching. I don't want to turn this into a four-hour video, so I have to break it up into little pieces, but the main takeaway is what I'm teaching you about here now. Notice that the standard deviation on FLOW for Wednesday, June 20th, is a standard deviation of three, but notice how close it is in proximity to standard deviation one on Tuesday. You see that? Look at the gap between standard deviation 3 and standard deviation 1, respectively.
And then look where the actual high of the day goes. It goes back to standard deviation level 1 on Tuesday. See that?
Now, by having this on our chart, we're going to keep going forward. Okay? The premise was we're looking for price to go lower. Tuesday, we had a winner. Now, on Wednesday, We can trade the New York session as a London close or New York overlap reversal with this premise here.
Trading with that level of 132.06, that's what that horizontal line is, that dark blue line, delineating that previous old low. Notice it sweeps up, hits it the first time. during the 20th, retraces back down, and then runs higher to go to standard deviation 3, again on June 20th.
That run above that 13206 level is a total soup cell. So you could be a seller there, trading in the New York session overlap into London close. That's where you can do an entry late in the day, when otherwise we would be looking to collapse our trades.
This whole day on the 20th is primarily going up, right? Well, we can sell short and fade that move as a scalper and try to get some type of a move going into the next trading session into Asia. Okay, so then we have our levels here.
I'm putting the FLOUT on both sides of the range on the 20th. So you can see the standard deviations above and below. And on the 20th of June, in this case it's Thursday, again, same type of thing, we have to use FLOUT. And using that criteria, we can see that there's a standard deviation of level number 2 for the 21st of June. And that level actually gets very close to the standard deviation level of 5 on the 20th of June.
Okay, so we have, again, the same expectation that we're looking for prices to move lower. Okay, but now we have that Thursday situation where the dollar index trades up into a monthly bearish order block. It hits it at the very moment on the 21st that cable trades down into that 130.110 level. Standard deviation level 5, standard deviation level number 2, respective on both days. There's a confluence there.
At the same time, the bearish order block is hit on dollar index. Then, boom, we get an explosive rally. Couple that with standard deviation level number 7 from the 20th.
And projecting that going forward, we get the very high within a pip or so on the 21st of June. Notice also that this entire move, that explosive rally, had you not been mindful of the liquidity pool that has been noted on the equal highs on the dollar index and the monthly bearish order block, you would not anticipate a surge in price like this in terms of a reversal. Now I'm going to blend the element of time of day, which is what this model is focusing on, and the incorporation of standard deviations and liquidity.
Every shaded area here is a specific kill zone. We have a New York kill zone, we have a London open kill zone, we have a London close profit-taking kill zone. Every one of these turning points take place at a standard deviation that's overlapping, which is confluence with the previous day's standard deviation and time of day. Notice also that if you look at how intraday highs...
Find an intraday high and go above it 10, 20, and 30 pips, and if it overlaps with the standard deviation, that also has a confluence with the previous day's standard deviation. You have a high probability, especially if it's time of day, linked, kill zones, which is all these shaded little boxes in here. When we have that...
We have a very, very strong confidence that there's going to be a turning point, number one. If you're in a trade, it's probably a good time to be taking your profits, and it's also a selling point for why trading sessions for intraday scalping is so rewarding because you can get your very turning points that take place on an intraday basis, on a weekly basis, and if you spread it out, you'll look at over an entire month, you can get just about every major turning point from the beginning of the month down to the end of the month. on every single relative swing. Now, I'm not saying that you're going to get every swing. Remember, I already said that you don't want to be completely accurate all the time.
First of all, it's not possible. Second of all, it's better for you to lose some. If you can have a 90% accuracy, that's great.
But in your trading, don't show that. Show like 65, 70, push it there, then throw a couple trades once in a while. Don't lose a lot of money on them, but don't let your hit rate be very, very high because your broker will put you out the door. Blending these things with standard models of entry, which is like optimal trade entry or turtle soup entries, you'll find that you'll have a lot of understanding and you'll fear far less.
because you know what you're looking for. These standard deviations, while you don't see them on my chart, on my other computers, this is what my charts look like. They are overlapping all the previous day's standard deviations, okay? And I'm using the rules that I gave you in this teaching. You know now when to use central bank dealers range.
You know now when to use the Asian range. You know when to use the flout. OK, go back into the mentorship and learn them specifically and then also apply the rules here when I don't want to use one and when I have to use the other. OK, I purposely do these things because you've already seen it. There's goobers out there that want to just make it common knowledge and they have no idea the level of insight that they're just throwing away.
And it has nothing to do with me being greedy and getting sales. Because personally, I don't care if I get anybody else in the mentorship. I don't care.
I don't want this information just tossed about because it took a lot of study and a lot of sweat and lost sleep and just obsessive, obsessive study. And there's a lot of faith and belief about like. pivot points and such, and we incorporate some of that. But by itself, they're useless. This, by itself, is powerful.
This right here, what I just showed you in this model, is the grail. This is what everybody will never, ever, ever see or understand. When I saw this and I discovered this pattern of how the standard deviations should be used, and how they overlap with previous days, it unlocked everything.
I knew exactly what I wanted to do in price action. So I get asked a lot of times, what is it, what's the thing that transformed you from mediocre in terms of my analysis to knowing, well, what makes me an inner circle trader? This is what makes me an inner circle trader. So there's a reason.
Why I don't talk about it. There's a reason why I just get people very close to it, because I wanted to see if anyone would discover it. OK, and no one's discovered it. No one was able to put that stuff together.
And I think if someone was a computer programmer. They would have the best advantage of doing it. If you weren't a computer programmer and you've never learned coding, you would never get this. I'm convinced that I would never have gotten it had I never studied coding.
So by taking these algorithmic ideas of seeking previous data points or arrays, thinking in terms of C++ as a computer programming. You have to have arrays where you get the information from, okay, well IPTA This was my theory and logic behind it when I was trying to decipher if, in fact, the markets are algorithmic. And I still leave that up to you to decide.
And I think if anyone really studies my information, it comes away quickly with there's no other way around it. But I wanted to see if there's a way for an artificial intelligence to, in fact, manipulate and control price. How would it do it?
Well, I started thinking if I was going to control price and make an algorithm myself, and if I could in fact create the program that a central bank would have, what would I do? Well, I would look for because before I go any further, just know that IPTA and I've said this before in records somewhere, I just don't know where IPTA has no understanding where your stop is. They don't know where XYZ Bank is or Joe Schmoe, the fund manager.
They don't know that stuff. Okay, it doesn't know that. It's not that intelligent.
That's my belief, which is the reason why it behaves the way it does. So it trades, or not trades, but it drives price, okay, and prices price. relative to where the logic that has been put into its programming would suggest traders'liquidity would be.
And it's not hard to see that. Just find out where the last high is. in the last 20 days, in the last low in the last 20 days, and you know that's the first marker that IPTA's going to consider. So that's going to be what?
A draw on liquidity, the last 20 days IPTA data range. Then beyond that, if we have already swept that low or high in the last 20 days, the next boundary or array for liquidity purposes is going to be what? The 40-day, and then so on to the 60-day.
Inside of those ranges, there are. weekly ranges, okay, and liquidity points. So where that liquidity is going to be is going to be relative to how we've studied price. When we blend these concepts and use those with the standard deviation idea I've taught you here, you have Everything you'll ever need as far as insider information. Because you're going to find that all the turning points are not as random as they appear.
I get folks that will send me emails and say, hey, look, you know. I'm watching this. I'm looking at this. And it does this and it does that. But I just can't figure out when to do this.
What range do I use? Do I use the Central Bank Dealers Range or do I use the Asian Range? You now know that. You know the procedure and protocol for it. I do not.
Now, please, if you're eating SpaghettiOs or watching a kid right now, stop and listen to me because what I'm about to say is going to be very important. Do not, and I mean this, do not share in any capacity charts that show what I just taught you. I'm going to lose my frigging mind if I see people doing it.
Don't send me a chart on Twitter and say, hey, am I doing this right? Or why didn't I do this? Or why didn't I do that? Please don't do that. Don't do it.
If you want to share things, you know, share it in the forum, but don't do it on social media. Don't do it in YouTube videos. Don't do any of that kind of stuff. But long and short of it is, the overlapping of previous days'deviations is how I do weekly highs and lows and how I do daily highs and lows. I don't always know.
What the daily high and low is because I have to wait for time. Time is the kill zone. Okay.
So I know generally what days of the week it may happen, and this week was proof of it because I did not hold for the weekly expansion. I went down on Tuesday. We had a small low consolidation going into Wednesday trading retracement back to that 132.06 level, and then we had another sell-off. Okay.
That sell-off. goes down below those equal lows that's been formed on the 19th of June and the 20th of June. So they have an equal low there. Also, that is below that 132.06 level.
So that sweep below those double lows they created on the 19th and 20th, that was to put people in going short. So the breakout hours that went short below there, they're going to sell. which is going to provide the opportunity to create more buy-side liquidity for professionals, which is what the purpose of IPTA is doing here below that 132.06 level, which is, again, at the same time, dollar index creates its run to that monthly bearish order blocks opening price.
And then we have that extrapolate moving on the upside. Okay. Even with all of that, look at this chart, and you'll see that all the elements are there relative to time and price in IPTA.
standard deviations, but you have to blend an overlapping of previous days'deviations to do it. Now, I know you're going to watch this video, and you're going to say, wow, that's really neat, but I have no idea what I'm doing with it, and that's normal to feel that. Okay, it's normal.
What I want you to do is start going through every single trading day, have one chart, In other words, one template in your MT4 where once you plot your standard deviations for the Central Bank Dealers Range, if it's applicable. If it's not, then you use the Asian Range. If it's not, then you use the Flout. But once it's on there... you leave it there then you do the next day and you do the next day and study every turning point at the kill zones you will see there's within three to five pips variance is what i think is normal so the next question you're probably asking is how much of a confluence is that well in other confluence and things like I've taught in the past it's always been like 15 pips it's not that much in this it's about three or five pips the reason why is because every broker is gonna have a slightly skewed delivery in terms of their their bid mask and that's normal we've already mentioned that many times in in a litany of examples so the main teaching on this model is number one standard deviation, how to use it, when to use it, why we're looking for it, and now the hidden piece or missing link, if you will, is the confluence of previous days'standard deviations.
But you have to know which ones have worked yesterday to have the benefit of having a confluence build today when it's time and price sensitive as well. So hopefully you found this insightful. Until next time, I wish you good luck and good trading.