Recording in progress. What up everybody, welcome to the class on rejection blocks and mitigation blocks. Now, you guys see on my screen the abbreviation RB. Sometimes you might have seen MB.
And now, let's really get into what it is. and how best to use it but you know you know how it go let's get into the price action recap at first now we're still in august so price action is just not the greatest in august as expected and and it remains that way i just can't wait to this month is over next week is september and i expect i actually expect some pretty nice moving in september i really do in either direction but august is not that favorable but here we are so coming into today the charts look like let's see i would say it largely look like oops i didn't mean to do that hold on largely look like this you know and so as i sit on the watches yesterday we're kind of in between two pd arrays very tricky spot now actually let's zoom out to the daily for a quick second so we ran really strongly in this time period to the upside one direction and then we've been ranging ever since now anything out of a range you know what can happen next we're either gonna like because after we expand and then we consolidate we're either gonna like reverse or we're gonna just keep going going it's really either or and both are plausible so like even if we're still bullish on let's say the weekly or the monthly we can reverse for a second just to tap into this busy to go higher which is pretty much what i see happening for right now for right now i don't know about all time highs per se but definitely at least maybe this purple to this blue um i think that's what's gonna happen that's as a side note but but uh my point is it's kind of like we don't have to move backwards that that far before continuing higher so the reason I say that is typically when we're looking at our PDA raised you know basically the things that we want to take place on we need to understand where the higher time frame is trying to head to that helps us pick the best PDA rate so it's very easy for me to pick a four-hour bullish order block when I know that the the daily chart wants to come here for example but when we're in a time period like this where it's ranging and it really could just keep going right now or it could move backwards first it's very tough so let's get back to this full hour now it's very tough so basically i'm saying that to say i don't know which side of the market to trust and to be honest those are the conditions that you don't want to trade in i'll be real it really like the smart and wise thing to do when the deal well is tough in the moment is to stay cash there's no need to to force the issue but you I didn't have the discipline to do that. I traded. So, here you have this bearish OB.
This is solid as, you know, you got your internal change of character right here. So, this still counts as a bearish OB. And so, I know I took a play on this on Friday.
And this paid me pretty well on Friday. Catching this downside into the... Into the... four hour lowest body right that was a really nice play from here to here cool and but you could tell the type of day friday was because look what happened after it hit that low we popped right back up and closed in the middle friday was a big doji and then you know sunday into monday it's just really just edging up very creepily and we're getting close to pretty much the entry that i took on my original bearish order block entry so i was like yo what like what is what is this you know it's like you you would think that we may be going to the outside now plus after it well for after rejecting this bearish ob and coming down this low to the lowest body if we were truly bearish you would expect us to like Like continue, right? We wouldn't just stop at the lowest body.
Most likely, you would just say this will continue. But we're in a range condition, one. And two, what I'm saying is that's showing you that, hey, maybe we are going to push the outside.
Maybe Price does not want to visit this daily busy for real. But I'm actually hide this because this is the weekly busy, right? We don't need to see this for right now. So, all right, so basically to the downside, to the downside, the targets are this daily busy. To the upside, it's this blue area and we're smack in the middle of both.
So I'm basically trying to get you guys to understand the scenario here because you'll find this scenario again in your trading career where you're in between two very valid PDRAs. and we're reacting to both at the same time so what do you do here besides the cash right especially when the price movement looks so great so it's not it's not easy and what I do in scenarios like this is I try to follow order flow of the lower time frames you know i'm doing things based on confirmation i'm just letting i'm letting the chart come to me but once again i really think the best thing to do in conditions like these is to stay casual if you're gonna trade it then then definitely um you're gonna if you're gonna trade it then definitely find a lower time frame now anyways we know what friday looks like i already went over that in detail so let's talk about today now today why do i have this this red area 4h rejection block why do i have that rejection block really technically should be based on price being at a swing point so i wouldn't really call this a rejection block for real but i highlighted it like that in live action really i could just i could almost change this to say this instead and i feel like somebody's off mute so just make sure you check out yeah yeah i mean yeah yeah your microphones for our resistance way i i might as well say that because that's really what i'm looking at i'm looking at this high resistance weight the market does not like to leave wicks like these in it so whenever you see very long looks like this you should be wary of price revisiting these wicks so i know when we left this to the to really to both sides i'm like yo we're gonna i don't know which side's gonna get hit first but we're gonna have to revisit these type of wicks so when i look at the downside if i were to measure of my fibs and I would measure a red wick on the bottom I'll see and I'll say hey wow okay so we didn't even get to the 25% of it the 25% of it would be where you see 0.75 right little simple math we didn't even get to the 25% of this red wick that's suspect because and this is something new that I'm saying to the new people we want to see price come to at least 25% of these imbalance wicks if you ever see it like hit 25% and aggressively move in the other direction, usually a big move is coming, right? Because it really just shows that it doesn't have much. Let's speak about a scenario like this. If this would have touched at 25% and then pushed up, that means that price is really strong.
It wasn't even weak enough to at least come to the 50%. Like it only touched at 25% and then pushed up. So that means price is pretty strong and I can expect a strong move to the upside.
All right, and it's just... simply vice versa for the downside if it can only get to 25 and then it starts dropping you could expect some nice continuation but when i see the fact that it did not get to 25 to me it's just it hasn't been addressed for real and so this leaves me suspect to the downside we could come down because of this now we're addressing this let's talk about another signature we have a closure above here and then you see what's going on know about closure below now I believe I shared this signature with child before and the slides but I repeat it as I know I try to repeat the signatures as much as possible so if price is trying to and my quote for the coffin but it's cuz I just think for I'm not safe many who the price is trying to address like a long wick and we close above 50% of it and then the next candle closes back below 50% of it like this then it might not be ready to actually take the the top of the wick we may end up coming back to the downside so when you see a closure above closure below then you can expect you know something like what we saw how we came back and ran the lows all right so this is a good it's a good uh a good example of what i'm talking about closure above closure below closure above closure below that shows that up it's probably not ready yet it's not it's not a good sign if you close above you want to see it's like pretty much to stay above and continue to take those highs so that's why i had that day to show y'all that but um so that's that's that but that's looking at the four hour like let's let's kind of see what really happened on the on the low ways on the lower time frames as the market opened up and you have consolidation here you know we ran the highs and started pushing down but it wasn't clean and i did not snipe the top of this or anything now my my profitable plays today were on this place like i caught a lot of this dump for real but two of my fundings called this dog and then another two of my fundings ended up trading this and I wish it didn't because those two fundings were red days I had red days on those trading this nonsense it was wiki it was Nancy in both directions and it was just chopped so literally like Like, notice that this big drop that happened in the morning, it stopped at 10.35. That was the last good play of the day. Like, literally the first hour was really solid. Made a good amount of money on two of my accounts.
The other two got killed right here. And that's just how I go. So, you know, I didn't have the best trade days obviously like a half-and-half But yeah, if like close to the dump pricing was lovely.
It really was I still dropped off pretty strong I just it's like I just wish I didn't read the other comes but i i mean why would i didn't anticipate us chopping here for the rest of the day which is nuts especially because when we came down i'm expecting price to come to the purple so i'm thinking like okay we probably bought a you know short this city come down to the busy then it was playing around a bunch of time it was just it just wasn't doing what it's supposed to do so that's just how the day played out for me but um you know that's what it is that's that's traded in august that's trading on monday in august and inside of a range you know price is not always going to deliver too well so now let's let's talk expectations as far as tomorrow goes so as far as tomorrow and by the way now this order block officially got invalidated we was already sussing it because yeah i already know where we want the reaction from you know where we want the reaction from the fair value gap side so once price even came this low in the first place it's already like tokening like but you see the the bears order block although it was a nascent delivery ended up working out so bearish side is winning but based on delivery here that's another reason why and this is me talking about tomorrow and going forward now that's another reason why i'm anticipating this basically to work because what kind of reversals start like like this all like nasty like this what kind of reversals start like that now usually when we stagger into a valid p.o. line such as this one then we can expect it to to work out for us so that's that simultaneously as you see on the weekly chart on a weekly chart this is a weekly busy as well so we'll be looking at this area preferably the top half i don't want it to come to the lower half of this weekly busy um so i want to suspect the top half and then remain uh heavy to the upside yeah i know i'm also eyeing this weekly city i'm eyeing that but that's really the same area as the blue one so i could just leave the daily version And why am I eyeing that? Because I'm very suspect on Nasdaq running all-time highs. I can see Nasdaq getting to this area while simultaneously ES runs all-time highs. When you look at ES, they're much closer.
They're also holding the nearest PD array. They're not nearly as weak as Nasdaq. Look at today's candle versus Nasdaq daily candle today. ES was not nearly as weak.
They're pretty much just holding the nearest PD array so far. So once again, even if they come down a little bit, I can still see them. coming back up, running this, and coming back into the range, especially for September.
But we'll see. September is historically the most bearish month of the year, every year. So it's not really just about that for me. I'm not looking at history while I'm anticipating some bearishness next month. It's me looking at the charts.
And my reason is, I know I touched on this a little bit with the watch list, but I can speak a little more in detail to y'all. free community of course so like when i look at this low it didn't tap into anything bro like nothing what is this this low is so sus to me and we have this huge imbalance wick and it says and of course there's imbalances all over the chart as we know but but once again i it's the it's the it's what we're bottoming on because this ain't no ob you know when i look at the monthly we're leaving this crazy monthly wick like this wick is likely to get um addressed it's very unlikely we just leave this wick in the market and then just continue higher. Like, it's just this monthly WIC.
Mind you, August ends this week. So if we remain somewhat strong, like, this WIC is still going to be it. So, like, yeah, nah. I really think we're going to address this.
And so this is just, you know, they injured liquidity here and everything, but I don't know. ES is so close to all-time highs that I could see them running it first before anything else. ES is much closer to it, but when you come back to NASDAQ, they're much farther away. but there is a premium a premium cibi here so you know i've seen this on lower time frames where like we don't quite meet the downside objective like and it's very sus as we creep up and i realized that all we did was come back to a premium and then they destroy that liquidity that they engineered i see that on lower time frames all the time like if this if the bottom is suspect then i look for this rally to be um just a rally into premium more than a rally to take by side.
Am I open to both scenarios? Of course, yeah, I know that. Yeah, I know I'm open to both scenarios. So we're going to eat regardless, but that's why I'm definitely eyeing this first and foremost, and then we're going to see what we think about it after the fact.
Um, it would be a hell of a trap if they do that. I feel like they about to trap everybody. We gonna see.
Um, and Alexis, yeah, yeah, you and me both, bro. On the chop today, you and me both. So, so, uh, yeah, that's...
that what was i gonna say i don't know what i'm gonna say but yeah i mean following like i said following order flow the bullish one didn't work the bearish one is currently still working oh yeah so one thing i wanted to say was like we don't want to see price invalidate this city i don't want us coming to the higher one we need to we need to respect this and come into the busy below so price needs to do this and i anticipated doing that that's what i'm thinking is going to happen we're going to use this city to go lower into this busy if price ends up pushing into this city you Just know, like, we're in low probability conditions, and I almost really don't want to be a part of that because that's not how we should deliver. If we're truly trying to come to this target, we shouldn't come back up into this premium city just to come back into this purple. Like, none of that should be happening. To be honest, we should just drop right now into it.
But if we do have to retrace, we should be coming into this. I do think we're going to come into it, though, based on how this fair value got formed. Right, OGs? Right. oh geez i wouldn't be surprised if we came into this in the first place um and then uh but yeah purple should be next and then i think we'll go bullish from there like i said because of the way that we dropped so that's that for real um once again this overlaps the weekly busy i feel like i'm supposed to i feel like there's something else i wanted to say but maybe it's on a different ticker um cl the reason why i said this yesterday was cl as you see they had a nice continuation why was that bullish on cl yes yesterday is because yeah I mean no just simply simply deal well right simply deal well this is what the chart looks like when I got to it like strictly CL on the higher time frame I cannot get direction on it look at the monthly what are we bottom one do you know I don't know okay what do we what do we top out one right here do you know I don't know this is super low probability in the last four months we've been stuck in the middle of this range like this is just not good enough the I don't know what see I want to do on the honor the weekly i don't know what's he able to do these are just low probability conditions i don't want to i don't like cl at all but when it comes to the daily you know this movement here is is something that could be seen as predictable though at least in the super short term that's why i gave this on the watch this yesterday because just on some dll vibes it's like all right we had a drop off it's pretty wicky we had a what is it even a civvy here it's like a if you even want to call this i'm not why do i even mark this on my chart like no there's no civvy on this price like for real and we came and we rejected we you know we bounced on the lowest body then we pushed out pretty strong all right so i mean there's just dl well is simply telling us to aim for these highs because there's nothing in this price like that should stop us from getting to those highs and then so that's the daily view but even when you're building your watches you want to look at other time frames to make sure they're in alignment so i go to when i went to a four hour i'm like oh yeah i mean you see what the four hours looking like they they invalid this this OB slash city splash painting we didn't paint we're not using the order block up here premium for real and we this place in over these hearts you know we got fit value gaps overlap the hearts everything everything was looking good so you just looking for continuation for I wouldn't have wanted to see it validate this this busy it shouldn't invalidate that busy before running to the yellow that was really my goal with CL today but but you see now I moved today.
It just ended up running. So just simple DOL could have given you that play, really. It's nothing too crazy. Y'all understand DOL, so now y'all know why I was able to say, so y'all will probably run today. I'm still looking for this yellow target.
We're going to see what's up. Ideally, I mean, looking at it now, ideally, I would want this busy. We're so close to the liquidity. I don't really need it to make a deep retracement in there.
But, yeah, like I don't, I want this to be a busy that doesn't. and get revisited. So really, ultimately, I want CL to, like, have a low somewhere in that four-hour busy and then run to the yellow.
You know what I mean? So if there's confirmation coming out of this area, then it's something to look into. But I really want to see CL, like, come lower than that four-hour busy. Doesn't mean I would get bearish on it. I'm just really pretty much describing the most bullish delivery, like, the most ideal delivery, I should say.
The most ideal delivery is for CL to use this to run to yellow. Thank you. see the hour yeah you know same vibe like like even on the hourly the nearest hourly busy technically is right here so if we use this and push higher then you know we spooling you know like if we use this to go up you know what time it is because that's super strong it shows you like real strength if we're using that nearly like this then yeah wouldn't trade anything in here I would only trade above this and below this below the consolidation so yeah it definitely looks like a AMD type action I could transpire you know but just want to show y'all like this deal well could have got you that and as a side note i know there's nothing in premium here but you don't always have to take plays from you know sell side to buy side remember that you could take things from discount to premium like you know we're saying it's a hindsight now but you could have gotten in from here and take it into a premium and be good or you could go from premium to discount you don't always have to aim for the lows or the highs like especially if there's an inefficiency in these legs just aim for the inefficiency you don't always have to to go to the from top to bottom the price doesn't even always move that way so just just remember keep that in mind um i think we'll move on for real but um yeah i'm gonna move on for real and that's what i wanted to say all right so yeah let's let's keep it moving um All right, so have you ever seen price approach a swing high or low and show movement as if it's gonna break over or under the higher low?
But instead it rejects right in that area. So like what I'm talking about basically is If you've ever seen price approach a swing high where there's like a wick basically and you really want to see it go above that wick. Of course, you're trying to run buy side liquidity, but it rejects right at that wick. Well, there's an opportunity to catch the top of bottom. via what we're discussing at that way so introducing the rejection block yes this is a live photo of me trying to talk to this girl or whatever like yeah I've been through some pain I've been through some pain but we here you know we stay strong we stay strong we staying strong so here at major highs and lows there rest liquidity in order for liquidity to be ring most people are anticipating a run over under the load slash highest wicks as y'all know I've already shared this gem publicly for the free ski but as y'all know when it comes to institutional order flow all we have to do is hit the lowest or highest body that's it that's it that's it so rejection block can help you see this What do you want to see when looking for a rejection block?
You want to see... This is not a requirement, by the way. What I'm about to say is not a requirement.
But a lot of times you'll see equal bodies and long wigs at a swing high or low. By equal bodies, I mean, I have a visual for you, but you'll see what I mean when I say equal bodies. But yeah, so a bearish rejection block. What you're going to do, and this is largely for your notes because obviously I have visuals for you, but this is largely for your notes, whether you screenshot it or whatever, or you're rewatching class. You're going to be drawing the rectangle from the top of the highest body to the tip of the longest wick.
All right? That's for a bearish rejection block. So think about a rejection block that's bearish.
It's really, I want you to picture a supply zone. I hate that phrase. I just got no shoes.
I'm out of trouble. or the 408. But I just said that word supply zone. Like, what am I doing? So I want you to picture a supply zone when you picture a rejection block pretty much, alright? So that's what I mean.
Like, that's where you would see the rejection. That's why it's called a bearish rejection block because it's going to be in that supply zone looking type area. Alright, you join a rectangle from the top of the highest body to the longest, tip of the longest way.
And then for a bullish one, that's what you can picture as like a demand zone, basically. You join the rectangle from the bottom of the lowest body to the tip of the longest wick to the downside. When price enters that area, that's where you could potentially take a play on. So this is what I mean.
And this is also what I mean with equal bodies. So first and foremost, you see the fact that these bodies are, one is closing here, one is opening right at the same level. That's what I mean.
A lot of times when you see this equal body type vibe with the long wicks, there's a potential for a rejection block type opportunity. So you see price comes right into that rejection block and then drops off. and there was like a big sell off that happened this day we came into this rejection block and dropped off now notice that at this swing point once again i'm taking it from the highest body at this swing point to the longest wick that's how you draw it the highest body in this area to the longest wick remember that and then that's That was ignited by a rejection block. And so typically you want to look for rejection blocks to work. When you have a higher time frame bias, this is a very important point to make.
You need to have a higher time frame bias. That way you can know whether or not. not you're expecting a rejection block type reaction or you're expecting price to actually like take the wicks for real all right so it'll it'll let you know that now in other words the rejection block should reject price and send it in its real direction so if if i'm anticipating higher prices and prices going to the downside i'm like yo what's up like we going the wrong way like turn around all right cool price probably will turn around but it's gonna touch the rejection block first so it might not run sell side for real for real but it might just come to the lowest body and then go back in your direction so a lot of times i'll anticipate a rejection block to work when i have a higher time frame bias that's when i'll anticipate them to work and in rangy conditions as well like oh my god but i'm saying that here anyways like number two rejection blocks work really well in rangy price action really well in regie price action now they're good on any time frame I like them on the hourly the most. Price can always trade through your rejection block and attack the Wix. So y'all know that, right?
At the end of the day, it's still liquidity. So don't think like, oh, anytime I see a long Wix, I'm hopping in, you know, some play. No, no, don't do that. Wait for confirmation.
You know, you'll see the signs. We have other signatures that can tell us like, oh, price is not, you know, looking to go higher. Like, oh, wait, why did that Bessie get invalidated if he's supposed to take the Wix? Oh, that Bessie got invalidated because we're currently... rejecting the rejection block that's why that busy got invalidated right next to liquidity no wonder so there you go um and you can scale into your position you could if you're someone that enters into a rejection block like right away like ah well i don't want to wait for no confirmation i'm getting into the rejection by bet just scale in add a contract in the rejection block and then if it really does work then you can you can add more confirm you can add more contracts after that Any questions about Rejection Blacks?
Questions at all about Rejection Blacks? No question. What I like to hourly the most... I think probably this is my experience with them. No particular reason.
They work on every time frame. I think hourly just gives a lot of, like, nice day trades. And I think that's why I have a preference to them.
Because what I noticed hourly rejection blocks is those are day trade type vobs. You know, if you reject the hourly, I can catch a nice trade out of it. But, like, I'm not really doing it with, like, a swing or nothing like that.
So I think that's probably why. But they good everywhere. They good in every hood.
Good question. Any other questions? Real quick question. I'm sorry. So the rejection block is just the long wait?
Yeah. you're highlighting at a swing point right at a swing point you're highlighting from let's talk about a a bearish rejection block such as the one on the screen a bearish one or black on the screen you will be highlighting from the highest body at the swing point to the longest wick in that swing point like sometimes you have like two weights right two weeks it's like hey where do i stop the rectangle may take it to the longest way okay yeah it takes it along his way highest body community of works the same as the fair value gap where you want to take it from like underneath the 50 of it well that's kind of a different concept but in a sense like we do look at the ce of those long wicks and we do look at the mean threshold of rejection block man what does mean threshold using that that phrase i forgot about mean threshold is 50 of any block any block so whether it's a medication block or auto block or breaker block you know, a rejection block. Any block you have, 50% of it is called mean threshold. So I repeat my statement. We always do look at the mean threshold of any rejection block.
You know, we do look at that. So absolutely, we would prefer if price could reject under the 50% on a bearish rejection block and do it. So rejection block is effectively a different form of an OB?
I wouldn't say a different form of an OB, but if the way that you mean that is more so just the fact that you can take a play on it, yeah. But I wouldn't even call it a different form of OB because it doesn't have to... You know, you know how OBs were looking for the impulse move has to accomplish a breaking structure or a change of character and it has to overlap a fair value gap and stuff.
Now, I will say, I will say that I do like when rejection blocks overlap fair value gaps. I do love those. Man, there's one on the tip of my tongue.
Like, there's one that I could show y'all, bro. Where is that, man? Where is that? I mean, there's one rough.
Yeah, go ahead. Well, I was going to say, because like when you, in your order block class, you talked about like those, basically those swing points, like if a fair value gap exists, like above or below, then that kind of, then that would be like an order, that would could be an order block. And then it's a little bit more certain that it'll react off of that if there's a fair value gap above or below, like that would be. Oh, yeah, those.
If I'm thinking about what you're talking about, I think you mean like when I talked about like a WIC rejecting a fair value gap and then causing like a break of structure and stuff and that WIC becomes like an important WIC at that point. Yeah, that could definitely be an informed rejection block for a fact. Absolutely.
And I don't even think this is the example that is in my head, but I could think of like a baby one. So I'm about to pull it up right now. It might be ZTL. I don't know. Let's see if this is what I was picturing.
Nah, that's not what I was picturing. But while we're here though, like, you know how this wick had rejected this civvy. If this wick was just a little bit longer, then it would be example of what I was talking about to where because this wick rejected this civvy and caused a swing like this, then I do look at wicks like these, especially with the higher top. but I'm telling you right now, if the higher time frame told me we're supposed to go lower, so let's just pretend that I'm going to go to the three-month, and the three-month told me, bro, the three-month is coming here, then I would definitely be looking for this rejection block to work out.
I would draw this like this, and I would say, hey, there is a rejection block on the two-year treasury bond that I like. Why do I like it? Let me reiterate. The reason I like it is because we have...
A long wick at a swing point that is rejecting a Sibby. So there is an overlap of this rejection block with a Sibby. It caused the price swing down like this. And guess what? I don't think we're truly bullish.
So I'm looking for us to reject this rejection block because I don't think we really bullish for real because the three month told me that we're coming all the way down here. So I don't think we coming up. I don't think we about to displace right now.
We're gonna reject this rejection block. the bodies don't have to be equal bodies don't have to be equal i i said that in the slides too i said it's not necessary we see it a lot but it's not necessary for them to be equal so in this case if you were going to try to draw this as a rejection block once again you're just taking the highest body highest body and you're taking it to the highest wick that's how you would do this all right so good um is there a certain amount of bodies or wicks that need to hover in areas we've got some black great question no Rejection block could be one candle. It could be one candle, it could be 15 candles at the swing point just consolidating. Either way, like, yeah, you only need one candle to be rejection block. Right.
Yeah. Yeah. Yep, yep, yep.
So, word. Yeah, yeah, yeah. Okay, let me get back to this laws. Let me get back to them slide things, man. Actually, hold up.
Now, technically, this worked as a rejection block. Basically, oh, never mind. Never mind.
Why does it say daily load? It's kind of bothering me. Hold on.
What the heck? One more question. So when you said that you take, so I guess I was thinking like you take the wick from the body that that candle is on, that that wick is on. But you're saying take it from the highest body, even if it's next to it, along with that wick? So let's use this one as an example.
Like there's a long wick here, for example. It's actually a wick that's rejecting the signal technically. So I should see how this. This works out, but you see at this high, there is a green body, there's a red body.
Perfect. The green body is higher. So this would be an example to see. At this swing point, the green body is higher.
I'm not taking the rejection block from the red. I'm taking it from the higher body. That's where I'm starting my rejection block at.
And then I'm going to drag it. to the green wig nope i'm actually gonna drag it all the way up to the to the red wig that's dang sheesh like the freaking empire state building yeah so that's that's where uh that's how you enjoy this rejection but in this in this scenario for example right okay yeah um so cool can we look at a shoeie real quick is that there's a long width and chewy with that i guess i mean all time frames but you can start on the weekly it's like what about drawing I'm just curious real quick, what did I do here? Uh, there was a city here. Are you talking about the weekly one? Because it's right here if that's what you're talking about.
Yeah. Okay, yeah. it'll be from that red red body up to that green tip correct yeah exactly we go from red body up to the green one green green wick exactly that's how you enjoy it because this is the this is the the high right like we went up like this this is the swing high and then we came down so it's like it's the same and like to simplify it it's like what i've been talking to everybody about for a while and i told y'all like i did i showed for free or whatever which is the the highest body concept so it's like imagine you were in calls i would say a safe target is just you know what i'm like listen guys safe target is go for the highest body at this swing point i wouldn't even tell people necessarily to aim for this weight because as we know this resistance like price could come up in the head and then kind of fizzled out you know so it's like it's probably just safe for the team aim for the highest body but i would be surprised you know i'm not analyzing this chart right now but like if i would if we're truly bullish on this chart even though it kind of does look like it you know we came into this kind of busy and we pushed out with this busy so you know there's a chance that we could use this on rough draft looking at it we could use this and it could take us into this high i would tell something to take profits right you know as a safe objective I mean yeah so so yeah that's how you that's how you join it can you have a bullish rejection but of course you got a bullish rejection but of course you could a rejection block is just I don't we looked at a bunch of of bearish ones i don't know why but a bullish one i don't see one of this chart on the weekly at least but a bullish one is just literally the same concept you're going a bullish one is the same concept you're going from lowest body to lowest weight like technically it happened right here i mean don't you do this so it's easier to see hold on So at this miniature like swing low right here for real I'll be taking a lowest body to lowest weight or whatever so when you know price goes into it you know it pushes out of it and we'll just be called a rejection block so you can see that price came right by me threshold and then pushed out of it so same block basically this is putting a name on utilizing high resistance liquidity wicks as a rejection point for price literally literally it all comes together like that's where the rejection block concept comes from is identifying those high resistance wicks and understanding that hey like i think really it's just a way to like like you said understand how resistance wait especially because it's like all right Let's use this as an example. If you have a high resistance wick and you're in puts right now, you're in puts, you're in puts, you're in puts. First of all, what do we learn?
Lowest body is a safe target. So identifying this as a rejection block helps people see like, yo, price could bounce. Like, don't get too happy.
Stop always looking for the bottom of a wick. Price could bounce. So that's one thing to look at. But another thing a rejection block does is help people notice that, hey, we sometimes... come to the 50% of a high resistance width.
We don't always, you know, sometimes we come to 50%, so you can just pretty much split up your rejection block into what we call gradients, which is splitting it up into four parts, four quadrants. Alright, but it's that. That's what it is.
So if you have a rejection block, yes, you could look at are we rejecting at the very top of it? Are we rejecting at 25% of it? Are we rejecting at the 50% of it?
The mean threshold, in other words. Oftentimes, when we get to the 75% to me, usually we're going to end up running the WIC. So I do watch to see if we get to 75, because usually when we get to the third quadrant, I can anticipate a run on liquidity. All right. He has said NQ will turn that smile upside down.
down when you think it's gonna run to the bottom of the weight that's facts like they be playing man it's like i feel like every high resistance to wake me getting respected on nq like not just nq a lot of tickets especially in a rangy marketer when when the market is consigned there's somebody trying to move if you notice a high resistance weight just get ready for a retracement like just get ready for a retracement like look at there's a there's a rejection block right here as well um highest body the highest wick see see where the body ended up setting and then you know price came on down So it's just good to identify these things. I know you guys already know about the highest body concept, but this kind of helps you split up that wick into Just different points you could you could look at and I analyze price around each point. So let's see if I can somewhat look at it So like once we get to the to the mean threshold, I'm now looking at This busy.
That's what I would look at because it's like if we don't respect this nearest busy to liquidity then to me me, I already know what's about to happen. Price tried to. Once we came back below it, I mean, we know what's about to happen. Yeah, I see what's going on. I think it gets really obvious under there.
It's like we're not looking to take that wick. If we were going to take the wick, we definitely, definitely were going to respect this busy right next to the quickly. Like, definitely.
You know, so that's that. Um, I think I got, I think I got all the questions. Any more questions at all or should I move on?
Uh, real quick, right? Yeah. So what, uh, I just was trying to put together like a, basically like a, a rule of thumb, right?
So 25, if it reacts to 25% of that weight, um, more than likely we'll going to reverse to the other direction right if it reacts to 50 of the wick then you know it's still a chance depending on how you know how price moves is a chance that we can either go back and run it or we may reverse but if it reacts to 70 or if it goes past 75 percent of that weight more than likely we're gonna run those loads is that does that sound kind of accurate yeah yeah you're pretty spot on like when we get to 75 percent of that weight it's like all right we're running liquidity most likely most likely 50 is the area of contention it's like all right what's happening next so one thing we look at that 50 is like let's just pretend you know we got 50 right here what we would be looking at with it is If we close above it, meaning we had a candle closure above it, if the next candle then closes back below it, we can start thinking we're not running the weight today. We're not coming up here. Obviously, things happen.
So I'm just speaking probabilities and anticipation. I think it's important for us to anticipate what's going to happen so we don't get caught off guard. And we know, hey, maybe I should trim a contract.
I should whatever it is. Because... these are like signatures like what i just described about a closure above closure below is a signature it's not confirmation there will be times when we close above close below and still come back above it's going to be times for that but there will be more times than not that it works out in this in this manner so it's just good to know that when price does that your ears should perk up your eyes should open up because there's a chance we could get a quick reversal even if it's just a retracement to like hear something still you don't want to get caught up in that of course that'll ruin your play so so once again that when we get to the 50 percent of a wick like that we're looking to see at a swing point a wick at a swing point if we get a closure above or below then there's a chance we can make a retracement back into the range so once again 50 is the place that's literally 50 50 anything can happen and we stay on our toes the only thing that can give us more confidence that we're going to either go higher or lower is is the higher time frame.
If the higher time frame told me that today or tomorrow, whatever, wants to come up here, then I can anticipate that we're going to end up moving past this weight. Even if we have a little bit of turbulence, I can still anticipate that we're going to end up moving past that weight because we're coming up here. But at time periods where the higher time frame is not clear, clear you need to pay close attention at 50 percent um that's that and uh what was i gonna say yeah and the 25 is something that you'll notice kind of almost after the fact like uh like so if we reject 25 we start pushing down with civvies that's when you can say oh we might have like a decent drop coming in the market on this ticket because like it didn't even have energy to get up to 50% and now we coming down pretty strong so you can anticipate like a decent little drop is going to come out of that um so that's what we're saying with that I kind of want to measure this week for example and see what's what's going on here so yeah like on this one we came to almost 25 percent came really close to it so you know we'll see what happens next on this it's also rejecting here right at this this cibi So, you know, we'll see what happens with this ticket. I will use other time frames to give me more analysis on it for real. Just look at the nature of the move, like what's going on and stuff like that.
I have a question real quick about when you use the fibs. You measured the wick and then you're saying that the candle next to it is what came to the 25%. Is that what you're referring to? And do it.
That right there, I have a template in here that says 25% of WIC. So I'll be watching 25% of WIC like that. That's how I do it. When we come, I see it's rejected and it's showing me what I like to see on the lower time frames and stuff.
Then I'll be like, okay, I'm interested. I want to see what it's here for. You know? I don't know about this ticket, but I'm just saying, for example.
One more thing. You drew it from the top of the wig to the bottom of the wig, or you dragged it from the top of the wig to the bottom of the candy? I'm measuring strictly the wig, yeah.
Okay. Yeah. Good switch. No doubt.
Yeah. any more any more questions dll makes me feel like this wants to go higher uh so any like even like everything rejected the 25 there the 25 if that rejection sent us back into this this busy which is technically an order block this is technically an order block and like that rejection sent us back to a discount so like remember we don't have to aim for lows but this rejection sent us back to a discount of his price leg and um we have a monthly busy here that we're currently reacting to and uh we'll see what it wants to do with price and i like how that was with a monthly right yeah monthly busy and then you know the weekly just provided a busy so especially if this gets respected which i would want this to get respected i don't want us coming back this low we need to respect this to push higher so if if i like what i see here on daily um we consolidate now so we need to obviously break out the correct way i see that we retrace all this consolidation into this this daily inefficiency vi busy overlap it's the nearest pd array y'all gotta follow me it's the nearest pd array on the daily i know it's not necessarily part of lesson i think you still learn from this for a second right so boom discount we pushing up that's the monthly what is the weekly doing the weekly just made a weekly busy okay well where on the weekly do i want it to respect in order to remain bullish in my head well to remain bullish in my head i need the weekly to respect this busy that we just tapped into okay well let's look at the nature of the reaction on the daily so far like all we did was tap into nothing has happened since all right cool so we're asking some of the same questions like okay well what do you want the daily to do in order to remain bullish well for me after this like staggered start we just got our first inefficiency here for real i mean there's a baby one down here but i don't really want it down there like that i like the fact that this is in the upper half this in the upper half of the weekly so based on the daily time frame now i like this as a poi and uh out of the consolidation this could be like an amd vibe let's see what that looks like on the floor well on the floor i see that we just made a i'm gonna delete these for hopefully you guys are still follow me i'm delete these for visuals but on the floor if we could push back into this range then i like more upside because if we are truly going to start a downtrend you wouldn't really want to see price come up this high so i would say though if i'm looking at this cibi here on the floor i need price to disrespect the lower half so basically I'm bullish, right? So I'm going to speak from a bullish person's perspective. From a bullish person's perspective, I want to see Christ come to the upper half of this and put a four-hour body on the upper half. If I get a four-hour body on the upper half, I'm going to anticipate that it's going to end up moving higher.
take these wicks you know and if we take these wicks do i think it's going to stop there no because the monthly already told me we're going to hire the weekly told me you're going to hire so why would i think we just gonna stop right there so i just did this you know A lot depends on this Sibby. Like, if we could get above 50% of that, then I would anticipate more upside, you know, coming into here. By the way, hopefully you guys can see this rejection block while we're on that topic. This is a rejection block right here that we just got that reaction from.
So, you know, that's that. But then, you know, it pushes back into that daily inefficiency, and then hopefully we can push back out. And so that's pretty much how we would do things.
So a lot of my play would be based on that. I don't get much information from the hourly at this exact point. But even from an hourly perspective, it's the same logic.
If I was looking at this and I was bearish, right? Let's go back to a bearish perspective. If I was looking at this and I was bearish, if I was bearish and I was looking at this, bro, right?
I would say this to myself. I would say, yo, we have a Sibby right here. That is somewhat of painting type lock. But we just ran liquidity after consolidating.
So I don't want us to come up to a deep retracement just to come low. We need to reject right here where this wick is at. So on the hourly perspective, we need to take right here from a bearish person and come down.
If we were to come above that, then to me, we're going to a premium. But in context, I don't like this premium to be with. all of this liquidity that we left up here and engineered out of consolidation so once again even from an hourly perspective i don't want price coming into this city which is like i said the upper half of the four hour city so whether you look at it from that hourly perspective you don't want price up here if you look at it from a four hour perspective you don't want price up here it's the same thing so no matter what it's like a lot of this plays maybe depending on are we going to reject reject this sibby or not and if we do and then we disrespect the daily guess what you just change change your perspective and you might start thinking hey okay well if we're not bouncing here then dang what are we doing i mean you might see a daily sibby out of nowhere and then now you may start thinking all right well we we might be going for the lows so it's an if-then statement for surely you're gonna make money regardless but no matter what that's how you like really kind to like analyze a chart um using all time frames all the time frames work in in cohesion you just have to learn how to use them together um and a great question that chat says is that rejection block no good anymore since price tapped it another four hour so for me i've seen justin blocks get used multiple times i don't i'm gonna take it without confirmation so like let's say we do come back into it and then i'm getting getting confirmation back to the downside, I'm going to ride that trend. But I don't look for it, no.
I don't look for it, no. And oftentimes, if we rejected it once, a lot of times that next revisit, we go past it. So that's another thing. I do see us usually, we don't use it twice, but keep your head on the swivel. Anytime we're in a high resistance wake, just keep your head on the swivel.
Anytime we're in a high resistance wake. No matter what, just keep your head on the swivel. not even saying that this is necessarily a high resistance weight I think Price largely rejected this because of this imbalance candle and we're still just dealing with that imbalance but it's still a wick at a swing point so because of me seeing this happen so freaking often in the market anytime I have a wick at a swing point I always keep in my head like yo we could just go to the highest body that's why I tell y'all the safest talk bitch is like yo take the highest body if you want to be super safe at all times like just because like to because this i mean i guess this is kind of a somewhat of a long wait when you look at it from the four hour it is it is a long wait so i get it but even for weeks that'd be like I still just just mark it off just in case just in case I've seen this happen too many times I'm like bro like rejection blocks be happening too often for me I don't like when they take back my profits for me that I just work hard to get so yeah that's that now let's go ahead and continue um it's not that much left to to do on class so we good but uh mitigation blocks so to understand the mitigation block you gotta understand the failure swing is a failure swing the failure swing is when price attempts to generate a new high or low but then it falls short of its goal so just picture like you have um price is trying to get that swing high just like the high we were just looking at but it falls just short just like es i showed you yes what did i say was suspect about es right now it's the fact that like we didn't run liquidity on the downside we didn't even tap into an order block on the downside we didn't do anything es just had a failure swing to the downside like it tried to take lows but then it ended up pushing back up that would be that would constitute as a failure swing because it tried to generate a new low but it fell short so and oftentimes that's when you can see a double top type looking pattern or a double bottom looking pattern those are like largely failure swings so here's a failure swing example you have a swing high then we failed to create new high look at that y'all do you see the rejection block we rejected a rejection block right there and came all the way down rejection block can be very useful for your trading so at least you don't get caught off guard when that happens no more because you know to start looking anytime you get to the highest body start looking look closely because this can happen to you so anywho this is now a failure swing in the bearish mitigation block the way that you draw it is you need to identify the last red candle before the failed rally. I have a visual for you, but this is for your notes.
In a bullish mitigation block, you identify the last green candle before the failed sellout. and an easy way you can think of it is you're looking for bounces or rejections when price returns to the middle of the w pattern or m pattern now the w pattern is also called the double bottom right so If y'all think about the double bottom, maybe you've taken this before when you traded retail. I used to trade this set up myself. I didn't realize I was doing a mitigation block set up, but I was to where when price leaves the double bottom and it works out for you, look at here.
with the imog deal client so i advice leaves that when it returns to the neckline i used to take calls at that neckline all the time that's all you're doing with the mitigation lot you're taking calls at the return to the neckline and same thing for a double top you taking puts at the return to the neckline all right that's all it is so here's an example of it i'll join this so you can even visualize it the way that i see it right so it's like we had a uh high right there be in a failure swing it looks like a double top right here look like a double top highest price come down what you're doing for the mediation block is you're getting in right here this is where you're getting in at the neckline to take it lower all right so that's how it is that's that's mitigation so what you're doing is you're identifying the red king right the the lowest right candle at this this neckline and hopefully you guys can see that when it comes to mitigation blogs what is this look look how look how everything works together a lot of people remember i'm teaching y'all everything i need to know about smc but it's like it all comes back to the same core concept what do you guys notice about what just transpired here what do y'all notice about that can i can i see it in the chat you We got noticed about this. Some of you already learned. Changing characters.
Okay, so you notice a sippy, but like what else? Yeah, paint. That's what I wanted to see. But you're right.
There's a sippy there, so we painted with that sippy, but it's really what they're saying in the chat. Good job. Everybody is painting.
So as much as like you can look at it as an mitigation block, you can also just simply learn that price tends to paint at these swing points. Or at, you know, price tends to paint in general. Not actually at a certain point, but that's my joke.
So, what we're painting on, we're painting on this Sibby. What you're doing is you're highlighting this red candle. So, that would be a mitigation plan.
Alright, let's keep it going. There's another mitigation block example. You see price painted. You see the city.
Beautiful work. Beautiful, beautiful work. Same thing.
What do price do right here? Paint. Paint where? On the mitigation block. So this is a bullish mitigation block and what you're doing is you're identifying the last green candle at the neckline.
Why is it a neckline? Why is it a failure swing? Let me draw it for you so we can get it. Make sure everybody's on the same page. Look.
B right we had a low we had a lower high what kind of lower high supposed to be a lower low right right right lower low nope we failed it we tried so hard to make a lower low than this low but we didn't we made a higher low therefore we had a failure swing now that we had a failure swing and we pushed out of there a mitigation plot and when we return to like i said the neckline really you're highlighting that candle just simply the neck line yeah i think it's the easier to remember that's why i keep saying that it's the easiest way to remember it's just simply the the candle at the neckline that's what it is the can at the neckline because and i'm saying this because now after doing a few cohorts now it's like i noticed when i was getting homeworks on mitigation blocks people just like i was hoping i'll pay attention to detail because like in the most respectful way i'm like just just look at what it really is because when i get homework back i end up getting homeworks of people like taking like looking for plays where we bounce like down here Or like, I don't know. I'd be like, yo, y'all, I said it a trillion times. Like, we taking the neckline, y'all. It's the return to the neckline.
That's all it is, the return to the neckline. So when you're looking for it on your homework, you're going to look for a double bottom. When you return to the neckline, be bounced on the neckline. You're looking for a double top that played out. When you return to the neckline, be rejected at neckline.
That's literally all you're looking for. Like, that's all it is. That is a mitigation plot in itself. So...
So would the next leg down be coming down to that? Because it looks like there's another double bottom. I mean, your double bottom that's forming over to the ear. So right in that neckline, the candles are going up all the way at the end of the slide.
But I would assume it would come bounce back in that area and then fly back up. It could. It could.
It definitely could. But also based on the fact that let's go back to painting for a second. second based on the fact that we left this area we came back to this area we kind of just want to leave you know we don't really want to spend too much time here coming back and forth like we don't really got to do all that now that's something that can't happen to you you know but ideally once you paint you need to pretty much like start finding your way up out of this area like because this is now balanced so i should be able to say i should be able to say yo this whole area is balanced so let's just leave like since we're balanced Why the heck are we like zigzagging ahead a trillion times? What are we doing?
Like that's ranging conditions. So, and sometimes that signals that we're getting ready to make a run on liquidity. Like when we're not just simply getting the heck up out of there.
Yeah, that's not really a good sign. So. But ultimately, yeah, you're right.
So question and test is, so basically what you're saying is we can skip getting our heart broken with all these rejections and breakup blocks and just go take our date to paint and sip. Exactly, exactly, exactly. Which I will be sipping on is the apple juice. Indubitably, indubitably.
But yes, good. So here's another thing on mitigation flies. Sometimes I use mitigation flies as.
as targets rather than places to take place just simply as targets why why is that because after a liquidity run and price is retracing i anticipate price returning to mitigation but so there's another thing about price action when there's liquidity pools that have been breached we often return back to that area now example that is this there's a there's a liquidity pool here why because everybody sold it this as a pivot point so there's a lot of stop losses there so as we broke above it it's very often a way to return back to that area so once again if you just understand painting you already are looking for that because you understand that a lot of times price likes to paint but just also i guess like everything works together it's also just a separate point that old liquidity pools tend to get revisited all liquidity pools tend to get revisited and so that's that's what you're seeing a revisit that old liquidity pool and that's basically why I say sometimes I just use mitigation block as a target which is when we basically look for price to paint I will literally short something into the painting area and get out Because I know we can bounce at the painting area. So why would I still be in my puts, right? So that's all I'm saying there. If y'all understand painting, you kind of already understand this in a conceptual way.
That's why I think that lesson is like super clutch at the beginning of the mentorship now instead of in the second half of the mentorship because now you guys can view all this stuff with a clear lens. So I like that addition to the mentorship in my notes. So mitigation blocks with fair value gaps only. I would never take an entry on a mitigation block.
In other words, I would never take a painting entry if there's no fair value gap there. Y'all already understand this because of painting. So once again, when they overlap and price has not met its objective yet, those are high probability areas for entries.
So y'all already know, like if we're looking to enter in the painting area, we need to have a BISI there. or and obviously in a different situation you have to have a cibi there when it's a bearish situation just make sure there's a fair value gap at the painting area in other words at the mitigation block area that's that's when you can anticipate price actually using it if you haven't hit your objective yet So mitigation blocks can help us identify objects in price action early. It's just funny like looking at this slide because I look you taught y'all this early.
So read this and think about what I talked about regarding spooling. If we're not spooling, we're painting. If we're not painting, we doing what?
Coming to a discount or a premium. If not that, we going to liquidity. That is this slide.
other words. So just read that, read it and think about that, right? So typically if price does not bounce or reject the mitigation block, overlapping the fair value gap.
Let's reword that. If price does not paint, it will trade to... liquidity that's what i'm saying here all right because if it was really just a retracement basically basically if we were really just painting it would have bounced at the painting area that's what i was trying to say if we were just painting we would have bounced at the painting area now what is this caution part that's me telling you guys about just know that if there is a fair value gap in this kind of premium then we could actually react there so that's that little like asterisk just like hold up if we're not painting we may be going to liquidity yes but if there's like a discount busy you might want to watch out because we could bounce in discount too that is all i'm saying in this slot that's all i'm saying in this slot so it's like if we're not painting the safest target is the premium city or the discount business that's a state target y'all don't have to go for liquidity all the time i keep telling you that so if you took it from the top and you notice that we're not painting you could take profits at the at the deep retracement fair value yeah but if there is no deep retention for right you gotta guess what we're going to liquidity we're going to liquidity but y'all understand the story so it's like you don't even actually need this line now this is a good visual of what we're talking about so here is you got to follow my mouse for it right this is mitigation block right here you see how it conjunct with a cibi there's also a visual of us painting right here at these times this is also an order block you can see this is a little block as well if you want well i didn't close under these laws so now let's just this is a mitigation block more than order block so anywho we rejected the one we rejected the mitigation block and we pushed down now you gotta follow me push down you push down you put it down beautiful beautiful beautiful now this low key is a is an order block though there's these green candles low key these new cars are also over the block so this order block ended up playing out but that's a side note now i'm about to draw here i'm gonna draw here so all right so price puts a high end hold on i'll use a different color hopefully this shows well price puts a high end nice this is good price puts a low end price fails to make a high high with closures now price comes on down hard okay now what are we talking about when it comes to mitigation bonds we talked about the neckline right all right so yes Technically, this whole red candle is supposed to be mitigation block, technically, but you don't have to do all that. I would just look for, if anything in a situation like this, I would just highlight the green candle, to be honest. Because really, y'all understand that it's about painting anyways, ain't it?
It's really just about painting? Okay, cool. So with that being said, when we return to this neckline, we're supposed to reject right here and come down. If the mitigation block is going to work.
When price pushes past it, what do we say? Where is it going to next? If we're not painting, we go into liquidity.
As you see, we ended up coming to liquidity. And lo and behold, our beautiful rejection block best friend right here is exactly what price rejected onto the exact tick. We rejected right at the highest body.
Now we're coming back. Are we painting? Are we painting? no we're not painting back what are we doing is there a discount busy no i don't see no discount busy so if we're not painting then we're going straight for liquidity and we ran liquidity so you see failure example of a mitigation block we didn't bounce here That's the failure and we did not bounce there That's also the failure. Let me use different words my son.
I just say we did not We redo that we did not reject it. That's what we embarrassed when we did not reject right there and we did not bounce right here so those are two failures and i wanted to show you that to show you that when we don't paint or we don't reject a rejection block uh reject the mitigation block you should understand that we're probably going for liquidity but but yeah yeah i learned that over you that's the beauty of it uh like postman said it's all about the signatures and do it and so that's also why once again we do things with confirmation just because we enter the mitigation block area we just hop in and and puts no if this minute if this mitigation by came from the five minute we gonna watch the 30 second in that area but the 30 second is not showing you sentiment shift what the heck is you hopping and puts for so it's like these are the points of interest I don't mean that's points to take a trade on every time those points that you're interested in you know that those are the important areas on the chart it's gonna tell you a lot if we don't react here you know we go ahead if we don't react here you know me going down here And so if we didn't get the 30 second reaction, then basically you should be riding the 30 second bearish price leg because now you have the next destination for price. So my question to y'all is, and this is for phase one, this is for phase one, phase one. What is the difference between a mitigation block and a breaker block? Why didn't you come up, dude?
The breakup block is a failed order block where it trades back through. And the mitigation block is... Depending on what side you're on, either what you're looking at as a WRM, the last green or red candle before the neckline.
so you describe what they look like so you're not wrong but like i want to know the difference like what makes something a mitigation block versus a a breaker block that's what i want to really see like like kia wrote something in the chat i don't know if y'all agree with her um and khalil wrote some calista breaking block is after the fact mitigations before the fact after the fact that's what you want after the fact kind of like uh break a block kind of kind of what i think uh that's vick vick said the same thing similar so break a block happens after so if it's not when order block isn't respected and you know price comes back and reject or bounce and mitigation is um um before the fact so uh Price coming back to either respect, price coming back to respect that specific area, if that makes sense. So with mitigation, price should respect that same area, but with breaker block, breaker blocks happen because price didn't respect the area. i see what you're saying but but the area that price didn't respect on a breaker block is just a other block or like right but what didn't price respect when it comes to mitigation block conversation okay i i get now i get what you said so many because mitigation is just a failure of a swing point so i i get i get what you're saying with that was like it's confusing so mitigation is Just is literally just that year just the failure of the of the swing point and a break a block is Is not respecting that swing point.
I guess you would say i don't expect that same point so okay let's just say price is going up and down right prices in the in the bullish bullish trend yeah and it's making busy um it's making busy's up and then on that on that lag and that final price leg it tries to go up but it fails to go up now you have a mitigation block right yep price breaks down um breaks down below that mitigation block well that's i think i just confused myself so price breaks down below that mitigation block right yeah it comes back to retest that mitigation block wouldn't that technically be a a breaker block as well no i was like i can't see the answer i almost did the answer that's pretty much what i'm asking what would separate okay what would make what would make one a mitigation block and one a breaker block because like it's they're gonna form in the same oh okay okay i don't mean the whole i don't mean the whole good i don't mean the whole good okay i know what you said okay so you you actually and you did answer earlier you answered it earlier you said So the mitigation block is the failure to make the swing is the failure of a swing point, right? but the or the the uh, the breaker block is basically After it it it's not a failure of a swing point. It did what it was supposed to do by creating the order block so it it it uh Didn't change the character, but it broke structure. Yeah, and then it came It came back down.
Um, it came back down broke through that and then came up the opposite direction so now it's coming up to retest it in a bearish bearish format and rejecting that that area yes you you i know you got it mentally even though maybe some people kind of because of the the words maybe kind of got lost in it i know you've been right so i'm gonna i'm gonna re i'm gonna reword it for you but you you 100 right like the way you got at the end is like let me see the other answers first and then i'm gonna try to reword what you said for sure for sure can you write that song so good that's the conceptual understanding so bad so what kia said is solid as well by the way so shout out to you uh man i actually said mitigation is an old area of liquidity acts as an inefficiency so that's true but i wouldn't say that's what separates it from a breaker block but you're but that's a true statement in itself but that's how it separates from a breakup uh kia said what about a breakup block price runs during retests a mitigation block doesn't run through it i wouldn't say that i i think i could uh enjoy it better let me just make sure uh well i'll show y'all in a second there's a test thursday there's a test thursday so be prepared it's a competitive test though so be prepared and it's gonna have um market structure other blogs mitigation blogs rejection blogs and um yeah i think that's that's largely it on that test so But a good amount of like that market structure that traditional market structure, you know, you know, not the greatest fans of it It was our foundation. So we want to especially because you need to understand it to understand order block So the traditional market structure the reason why I still keep it once again is because of order blocks largely like the only thing i use change the character flow of registration for is order blocks so that's why it's still something i teach plus once again i just know it's a good foundation so uh yeah that said we have a market structure that says heavy to make sure you understand that type of stuff and uh yeah But yeah, chill y'all, it's all good, it's all good, y'all can be good, y'all can be good. And then I just want to see a picture of a mitigation block playing out, playing out, playing out, playing out, playing out, playing out, as well as a rejection block. As well as a rejection block?
Rav, I didn't know you threw that on there, Rav, hold on, hold on, hold on, hold on. As well as a rejection block, what's up with this guy? What's up with this guy? Who knew that? i know that was on there the power of now the power of now don't don't procrastinate then you can do something do it do it right now so i had to fix that my fault all right so boom let's get back i want to show you how quickly what i was talking about and then we gonna wrap so so look Look my people so let's let's draw this scenario here whoops all right so we have i'll do a bearish version we have well i guess it's gonna be bullish my bad so anyways we have a order block that's how it works out you have a a bullish ob i mean follow for it's a bearish ob right nice and pretty okay So when price comes to it, you're expecting.
No, don't take off work to study. You're good. Don't worry. It's going to be a competitive test. You're going to be Gucci.
Don't do that. Don't do that. So look. So we got the Bears will beat. Now when price comes to it, you guys are expecting it.
reject it right but next thing you know price closes above it all right so what is the breaker block the breaker block is when we return to a failed order block notice the order block failed right so what is it breaker block regularize when you return to it so i'm gonna actually go ahead and change this over and call it the breaker block because it's really a break of like that because we're using this for calls so now that we're going to use it to take to take price to the upside it's a breaking block that's a breaker but it used to be an ob now it's a breaker now what separates this from a mitigation block well what separates this from mitigation by the fact that notice that it's not necessarily a failure swing because of the fact that price actually closed above like let me join mitigation block here so we can see that and next to each other so but this is a bullish ones I need to show y'all bullish mitigation block so that'll be it this way alright so in a bullish one and a bullish one my phone I'm really talking about the fact that we closed below here let me show you what I'm talking about yeah this is the difference the difference is gonna be in this liquidity sign see this liquidity we ran that allowed us to close the order block in the first place this liquidity is what made this order block because we ran the lows therefore we got a break of structure therefore this is a order block at first before it turns to a break of block it was an order block why is it an order block because we actually ran the lows okay so that being said I'm gonna try to look at these side by side notice that let me slow down I know some people confused so look we had a low a lower high a lower low let's do this on this one we got a low a lower high did we make a lower low that is the difference between a mitigation block and a breaker block we didn't make a lower low here just like we did over here so that's what separates these so now when price just ends up going bullish after this higher low the mitigation block is the return to basically the painting right is the painting is when we return to the neckline all right that is the mitigation block so these scenarios are are similar but what separates them is the fact that one was a order block because we actually a breaker structure one was an order block the other one was not a water block like if you tried to tell me that this is a ob without having a breaker structure i might have to smack you All due respect, because that's not what we learned. So now we just going to fight. That's not what we learned. How is the other black if you ain't had no break or structure?
That can't be an OB. We ain't had no break or structure. How the heck is the OB?
Come on now, we better than that. This was an OB because we got a breaker structure. You see, so that's what separates the two.
So one was on the block, one wasn't. One was on the block, one wasn't. That's what the difference is between a breaker block and a mitigation block.
All right, please ask questions and please let me know if you don't understand. Matter of fact, can I get ones and twos? Let's do it like that.
Can I get ones and twos? There is visual here so y'all can see like we did not run liquidity that'd be the difference same area just different context exactly exactly and i've seen a little one so far so i hope everybody's with me um So cool. Are you saying that the difference is one is an order block? One has an order block and the other one doesn't? Yeah.
Like, like. In this scenario, this was a bearish order block. It was.
It just didn't work. Like this was a bearish order block because we had a breaker structure making a lower low like this. And so we highlighted this as the origin. of that move so this is a bearish order block price comes up price comes up to use the bearish order block and it doesn't even work like what the heck these order blocks sounds stupid it doesn't even work it's okay we're gonna use it on the other side so that's that's this scenario one was an actual order block and this scenario this is not an order block because we did not make a lower low We didn't do this.
We didn't make a low, a low. We failed. It was a failure swing. We tried to make a low, a low. We failed at it.
And so we pushed out of there. Did that make sense? Yes, thank you. No problem. No, it's the same thing.
A painting busy and the mitigation block is the same thing. That's why I'm trying to say like, you're a paint like a like this. This is the mitigation block, right? The candle that exists here at the neckline. There will be a Bissy overlapping it if we're going to take this play.
Otherwise, we don't really like it. So as far as our probabilities, we can anticipate this mitigation block working if there's an actual Bissy here to make it work with. If there's no Bissy... here then we're not even going to look at this mitigation block to me it's just like we're probably going to breeze past it so there needs to be a fair way of overlapping it for us to actually you know take the play yeah So for the mitigation box, did you say that it's the, so for a bullish mitigation box, it's the last green candle in the neckline? And then for bearish, it would be the last red candle in the neckline.
So for bullish mitigation block, it would be the last green candle. So for this type of, yeah, for the bullish. this one you're looking at the last green candle because basically it's just like how you make an order block with an order block you'll be looking at the green candle before this drop right if this is if this was a bearish block yeah yeah it's the same thing same thing is that's why it's like let me make sure they know the difference because yes you're highlighting the same candle but just know that when it comes to mitigation blocks we never actually closed never actually closed under this low so that's what's separating the two this is mitigation block you we didn't close under this is a breaker block because we actually did get a closure under like we we made a real order block here we really did it just did not work it didn't work any other questions We want the breaker block to have a bissey overlapping it.
Where are we taking the play? Just like we want order blocks to have overlapping bisseys, we want breaker blocks to have overlapping bisseys. We want mitigation blocks to have overlapping bisseys.
We like, we don't have to have, but we do like when rejection blocks have overlapping bisseys or civvies. In this case, it'll be like a civvy. All right, just like the one to the left. We like that. You know, those are good.
So, Fair Value Gaps, they find their way into everything we do. They really do. They find their way into everything we do. It's a gorgeous thing.
It's a gorgeous thing, man. Overlapping Fair Value Gaps. Keys to life.
All right, so study up, get at homework, and let's keep getting better. Recording stopped. Any last questions or anything? Yes.
Can you reiterate on what we need to brush up on for the test? Yeah. Wait, Kier, what you mean? What's Aja doing?
I don't see nothing crazy. This ain't nothing, Kier. This ain't a damn thing. Kier, again, let's hype for mine. Y'all shouldn't be stressing.
Y'all good to see. I almost passed my evil eye. Kier, you gotta chill.
Yeah, you gotta chill, yo. Give me a train at 10.30, son. It's James.
Be careful training this ish. Yeah, son. Y'all play this hard, son.
Hold on. Be careful, kid. We're on talk.