Well, good morning folks. How are you? If you would all be so kind, if you're following me on Twitter, or X, if you could just give me a heads up, give me a 5 by 5, let me know you guys can hear me.
Awesome. Thank you so much, folks. All right, we're going to do a little bit of a teaching this morning that I think will serve you well.
This is something that is applicable to Forex and indices, so it's not something that's just limited to stock index futures. So I want to take you out to a daily chart real quick. Sorry about that. I did not put my pups away.
So if you'll bear with me one second. This guy's so unprofessional. Look at this. He does this for free.
He does this for free and he irritates us with all this extra stuff. All right, so look at this. candlestick right here on July 17th, 2024. That's the SIBI. That's what has been our objective since, well, since the mentorship in 2024 started.
That would likely draw us up into this in here. So if you look at the gradient levels, we have this candlestick low, that's the high. This candlestick's high, that's the low of this SIBI, sell-side imbalance, buy-side inefficiency. Midpoint is 20,568.
Upper quadrant is 20,646.75. And we've seen that traded to yesterday, and it looks as if it hit it today as well. So when we're trading inside of areas where it may consolidate, even though you have a bullish bias, even though I have a bullish bias, it's important you look at what overnight did. Okay?
With these levels here, just note that the dotted, heavy dashed, I'm sorry, heavy dotted lines are respective to this individual single down closed candle on the daily chart. There's going to be smaller little levels which I'll put on the chart and you'll see how I'm putting them on in a moment. Don't get them confused with the dotted lines, okay? So the lower black one here is this candlestick's daily high on the 18th of July.
This candlestick's low. That's a black dotted line. Then you have the upper quadrant blue.
Midpoint is kind of like a purple hue. And the lower quadrant is a blue. Okay, so...
just be mindful that and we're going to drop back down into a one minute chart you can see the reaction off of that upper quadrant level so far right here that's what this is and if you scroll down a little bit you'll see the black one up here see that so we have where we are right now to this level on the upside if everything remains bullish this is the range that's between Market price and where it would need to trade to I have added because I want my son to understand daily highs and lows There is the opening Here you put on Rigor trading hours. You can see the gap. It's rather anemic. So we're not terribly excited about that so far this morning We have some sell side down in here be mindful that Scout, honey, I can't hold you right now. Not right now, bro.
Go play. So just be mindful of this right here, okay? It's a nice pool of liquidity there that may be impactful this morning's trading. I just want to annotate the opening range gap.
All right, so that is the range, if you will. So if we look at the days where it can consolidate, okay, and I'll tell you what that means in a moment in comparison to a day that's trending. If we are in a day where you're looking at the market on a daily chart and you're trying to determine if it's bullish or bearish or if you have already maintained a bullish or bearish bias and you're you're waiting for the next leg in price higher or lower respective to your bias. We'll say that we're sticking with the bias that's been given us since the beginning in August of this this year when I started the 2024 mentorship on YouTube.
I stated the indices would be bullish they're going to keep pumping them up until we get into the election because The perspective is the neophytes or the street money or the unlearned or non-investors, they see the stock market as a measurement of the economy. And it's not true, but that's the mechanism that they use during presidential election years. So if you haven't ever wrote that down in your journal, just make sure you have that there. So with everything being bullish, Okay, what you want to do is anytime when the market's bullish and you have a consolidation range where we have it like this, see what it's doing here? Just staying at a rather large range in here.
You want to define it to time. Strip it down to time. Yep, that's that scout licking her water. This is so unprofessional.
I cannot believe he's forcing us to listen to this dog lapping up its water. So this is midnight in New York local time. Hey, listen, I'm giving you some leeway here, but you're really taking advantage of it.
Be quiet. And to 5 a.m. Okay?
I think I just moved over here. Okay, so you have midnight New York local time and you have 5 a.m. So these are overnight hours. It's very specific times And then what you want to do is you want to get the highest high and the lowest low between those two price points or two time reference points.
I apologize. Okay. Don't count the midnight candle and don't count the 5 a.m.
candle. It's between those two delineations in time. Okay. So what you'll do is you can't use that candlestick. Otherwise, it would be that candlestick that I would be anchored to.
I'm not doing that notice that don't worry I'll be looking at live price action at 10 o'clock let the opening range transpire I don't need this price movement right here so the midnight candlestick and then after that so 1201 to 459 what's the highest high and the lowest low well that's right here that's the high and that's the low once you have that information what you can do is you grade that price swing meaning you take your Fib just simply take it put on the high that's not the high drop it on the highest candle down to the lowest and you're going to be showing the quadrant levels that means your Fib will look like this you'll have a 0.25 level 0.75 level, 0.5 level, your 1 level, and 0 level. That's the high and the low, the range that you're defining. That's equilibrium, which is halfway.
And then the upper and lower quadrant, respectively, depending upon which direction you draw the fib from. Okay? So as you saw, I drew the fib from the highest to the lowest in that defined range between 1201 and 459. This is your overnight range. So what this is actually doing is this is going to allow you to predict.
Yes, predict, Virginia. You're going to be predicting some things with this information, okay? So because you're in a range, you don't use this concept when the market is trending, okay?
So when the market is trending, it's been like running in one direction overnight. This is not what this is. This is part of a larger range. So if it's been like...
just tearing off, taken off from Asia and just keeps on going one direction higher or lower. You do not use this for that, but when you're part of a larger consolidation, which is what you're seeing here, all in here, we do not take out the high here and we do not take out the low here. So we're consolidating leading up to the beginning of pre-market session for Tuesday's trading, which is today, today's right now. So what I've did is I've defined this overnight range and we have graded that.
Okay. Now I'm going to change the, the, the levels here from a dot to a dash. So that way there's a distinction between, remember I was telling you on the daily chart, those dotted levels, that is going to be the quadrants inside that daily Sibi or sell sign and bounce buy sign and efficiency.
Contrast that with now the heavy dash line, which is defining the overnight range. When you have this information, it'll allow you to predict the general location in close proximity where my PD arrays are going to form. So that way you're not surprised.
They don't just jump out at you unexpectedly, let's put it that way. So a lot of questions I've gotten over the years. from my private mentorship students, a lot of the questions I get from YouTube viewers or whatever, emails, messages, now they go and they text message me.
Please don't text message me because I'll block you. I won't answer your question. I'll just block your phone number. But the idea is I want to get an idea on how to communicate to students how they can predict in the general proximity in terms of the the price.
Now the time aspect is always a constant. You know the times. They're macros. They're the opening session.
We have the 830 algo. That's when 830 starts spooling price, runs for liquidity. You saw me do that yesterday.
And I'll go over that trade, by the way, before we close today. I will be done at 1030. So we won't be having a very long session today. I'm trying to keep them small, concise, and to the point.
If you look at the levels, and again this is the lower quadrant, middle, and upper quadrant. You see that? Of the overnight range.
Let me zoom back out a little bit so you can see the reference once again. Here's the high of it, the upper quadrant, the midpoint, lower quadrant, and the low. So this is the low overnight range, high of the overnight range. Very simple. Not complicated, is it?
I give you very specific times to look at. I told you why we're using this. Why are we using this?
Because it's part of a larger consolidation. It's not an extension run where since Asia started last night, it didn't just start running in one direction. It's been maintained inside of a larger range. So I already know some of you that are brand new are going to look at this and be subjective and say, well, you know, how can I not see this as a trend or how can I not see this as a reversal? Because you're trying to take everything that you either heard somebody else as a student mention, or maybe you've watched a few of my videos, and you're trying to form fit and take certain aspects of what you're unaware of, and you're trying to cram in every lesson.
For now, just understand that this is a concept that I use when the market is being held in a range. It's not being permitted to extend further overnight. It's staying in yesterday's predetermined range. So inside of the daily range of yesterday, we haven't made any new significant higher low. So because of that, I elect to use this concept.
I'll look at overnight range defined by 12.01 to 4.59 Eastern time. That means your time always has to be set to this. If you're looking at trading view and your time is set to anything other than that, you're doing it wrong. Period. Okay, so.
What you can do with this now is think, we've been bullish. I've not been calling a crash. I've not been calling it lower. We've been focusing on primarily the higher timeframe macro perspective, not macro in terms of time.
The perspective on the higher timeframes is it's bullish because it's an election year, because it's likely to continue going higher. Where can it trade to? Well, it can trade into that larger SIBI on the daily chart. So With these levels here, these dashed lines, that's on the overnight range.
These smaller little dotted lines here, and I think if I go up a little bit more, you'll see another one right here. So here's the upper quadrant to the daily SIBI. Here's the midpoint of that. Look what happened today when we went down and made the low of the overnight range going into 430. It turned around in there, and look at that right there at 508. What's happening there time-wise? what's occurring right there at that candlestick's low it's trading to the consequent encroachment of the daily cibi okay so just for just for a moment because i want you to understand what i'm pointing to here what this level is we're going to go back into the daily chart just remember that that price that low there is 20 567.75 okay right there We're going to jump right back up to a daily chart because I want you to see what I'm pointing to and what I'm referencing.
Because I'm sure by going back and forth in the time frames, you're losing your focus. That's this level right here. 20,568 even. It's defining that candlestick's low, that candlestick's high, halfway.
That's what that is. So that's consequent encroachment because it's an inefficiency or gap. If it was an order block, it would be mean threshold.
The midpoint of that price level of this individual candlestick, what I'm highlighting is essentially the middle of this, that right there. And usually you would see me highlight it like this. It'd be something with a red hue or whatever, but I'm focusing your attention right there on that midpoint. Now let's go back down to the moment of chart. and right there on that candlestick's low twenty thousand five sixty seven point seven five it went one tick one tick below that daily cibi consequent encroachment to so to get that price perfectly if you're a smart money trader it has to do what it has to trade one tick below it because you just can't create the low at twenty thousand five sixty eight even which is consequent encroachment that would be the algorithmic delivery if it was perfect but not affording any smart money to buy it because to buy it that this has to be at least one tick below that price.
Do you follow what I'm saying? So if we're looking for longs and it trades down to a specific price level, it's reasonable to anticipate it to go one tick below for perfection, for perfection. And you're seeing that happen here at a time.
Listen now, listen, four 50 to five 10 AM. That's Asia's close. We're seeing a shift from the Asian market to European London crossover into New York. So we're entering what? Pre-market session for New York session.
But we still have Europe. We still have London still active until around 11 o'clock, 1030, something like that. So at that moment, we can see algorithmic price delivery right to the tick, just like that.
And it turns. at a higher timeframe level that you would have never paid any attention to. Now, what are we?
We're bullish. So if we're bullish on the marketplace, we're expecting price to react off of these levels and cause displacement to the upside. That means we want to see price start to run higher from it.
We're not trying to short. We're trying to look for displacements moving away from them. It's an energetic price run that says, look at me, pay attention to me.
You see that happening here? And what is it doing? I'm going to take this 5 a.m. line off. Just be mindful.
I'll give you one chance to take a screenshot of it that way for your notes, Caleb. Everyone else, you should be doing this in your own charts. He doesn't have the experience navigating through as much as some of my older students. But if you're going to be lazy, I can't stop you. But that's what the opening, I'm sorry, the overnight range is from high to low and the gratings.
okay g-r-a-d-i-n-g-s gradings that's that's what this is so we see this happen here and it starts to spool higher what is it doing it's taking out the relative equal highs right here which are qualified why because this high is slightly lower than that one so what's going to be resting above that short term what minor buy side liquidity so the market rallies up above that trades into this inefficiency there and then comes right back down into in this price leg, in this price leg right there, it creates a fair value gap. Where is this fair value gap in proximity to, I don't know, this dashed line? Is it above it or is it below it?
It's below it. So in reference to that price and time, what time is this? What time is it right in here?
550 to what? 610 macro. Holy, holy smokes.
This is unbelievable, right? Because now you're starting, the gears are turning, aren't they? Oh my goodness. Oh my goodness.
You better start making some more videos because you're literally making me smile every single day. I'm a fraud. Look, I see these expose themselves.
Come on, make some more videos. Come on, come on. Below that quadrant, okay? Below that quadrant, when you're bullish, If a PDA forms, it is in a discount.
It's also in close proximity to it. So that means we're expecting this to deliver what? A re-delivery in price, which we see here.
And then once more here. What time is that candlestick forming? 55 minutes after 5 AM. That's the $5.50 to $6.10 macro.
Then the market does what? It delivers price higher. And what does it run for?
Equilibrium of the overnight range. That's this dashed line here, okay? Forget all of this stuff here.
Forget all that for right now. It's trading into that. And then what does it do?
It comes right back down into some random level, some random Elliott Wave, white golf wannabe stuff, okay? It trades right back down into the lower quadrant once more. And does it stop there? Absolutely it does not. It trades down into your fair value gap right there.
So that makes this what? Reclaimed bullish fair value gap. And then what does the market do? Completely random, completely unexpected. The price runs from there all the way up past the minor buy side here, above this buy side, and trades right to the upper quadrant of the overnight range.
Now, what do you think is above that overnight range? Look how smooth that is. That's probably something significant.
What would be resting above that? Oh, I don't know, probably some buy stops. Somebody that would have been riding this short, hoping it's going to keep going down.
And the market runs to that level here, upper quadrant, retraces back down into what? Oh, my goodness. Look at this fair value gap.
How do you pick the right fair value gaps all the time, ICT? Why do you keep picking them? You must be recording on a dozen screens because you have a dozen screens and you're recording all of them and you're looking for the one that works and then you're going to share that one.
Do you have any idea how hard that is to juggle all that? You guys give me too much credit. You guys give me way too much credit. All I have to do is the right stuff. What I'm teaching you right here, this is the right stuff, okay?
NASA follows my logic, okay? We do the right stuff, okay? So again, look at the criteria now. Look at the criteria.
Here is equilibrium, okay? Just so happens there's a short-term low there. What would be there?
Sell-side liquidity. Why would that be there? Because they start to run a little bit here and they're going to chase it.
Who? Longs, street money, uninformed people, YouTube influencers with... affiliate links for their stuff because they don't really trade but they want to make videos about me keep making them baby keep making them because you're bringing them right here and they're learning how to do it for free so below that sell side liquidity there's your equilibrium price point of the night overnight range so what's below that in close proximity oh it's just this this random fair value you got right there when we're bullish and is it below your equilibrium of the overnight range absolutely so what is it it's discount To the young man that put the YouTube video out there, you don't need to do anything at a premium and discount. I don't do anything at premium and discount. It's nonsense.
You're clueless. You're clueless, son. Listen, you need to sit down and take notes because you're not learning anything by experimenting without the stuff I've taught.
You're going to be doing it randomly. You're going to lose money, and you're going to assume that this stuff doesn't work when it's perfect. Okay? Patek, they refer to me for their precision.
They come here. They come here for the precision for their watchmaking because you can set your watch to what I'm doing. The market's going to deliver just like that. Just like that.
So the market comes back down into a fair value gap that is in close proximity to the equilibrium price point of the overnight range that is clearly defined. It is not complicated. It is not complex. If you don't know what time it is on your charts, then you're a fucking idiot. You have no business listening to me or anyone else.
You shouldn't be trading. If you think that's complicated, if you think this is me complicating anything. You failed in elementary school, guaranteed. They pushed you through school. There's no way, there's no way you deserve the graduate degree or your diploma if you're still carrying one, if you can't follow what I just showed you today.
Very specific price levels. If you're bullish, the PDA rates will form at them, but below them. Ooh, so we're on a discount. That means that if there really is this elusive, hard to believe exists algorithm, Then there has to be logic that repeats over and over and over and over again around the things I've communicated to you. What?
PDA raise around time. Time. It has to be the time for the market to move.
Otherwise, it isn't going to move. It'll stay stagnant or retrace against you. Period.
Now, if it's being held there, that means there's manual intervention. That means they're holding it for something later in the day or the next trading day. That part, you're going to get burned by.
I get burned by it. It's nothing you can do about that because if they want to get their hand in the cookie jar, you can't stop them. Period. That's why you have to have a stop loss. That's why you don't over leverage.
So what does it do? It drops down into some random fair value gap right here. And it's half of the move that you expect to see delivered, which is the high of the overnight range.
Price rallies, draws back down into another fair value gap here. If you were looking for a long, if you were, would you be afraid to buy it in here? Would you think it's too much of a premium? It's too high. I can't buy it.
Can't do it. No. What happens when you see price on the upper half of the overnight range? You don't want to see anything come back down towards the low of the overnight range.
But we have to deal with what? the opening bell. We have to anticipate some kind of volatility coming into the marketplace. But before the opening bell, what takes place at 8 30? Usually there's news.
If there's any news that's on the docket for the day, it's either going to be a high impact or a medium impact news driver. But you don't need that. I'm teaching you that there doesn't, there hasn't ever been a need for me to have a calendar event on 8 30. 830 is an algorithmic price delivery. The algorithm does this very thing every single day at 830. It will spool and it creates some kind of sentiment driven response in traders because they want to chase it. They want to believe something that's either in play or maybe potentially reversing.
And it gets their appetite revved up because they want to get there and start trading in another hour. Think about it. It's kind of like when you watch the.
The cheerleaders watch the players on the field or whatever before they go out and play their game, whatever it is they do. The cheerleaders get them all riled up. Who?
Not the football players. They could care less about them. It's the crowd.
Well, the spectators here are the speculators, and they're waiting for that opening bell. So at 830, there's always going to be what? There's going to be a price run.
It starts just like that. And if you have a medium or high-impact news driver. at that time at 8 30 New York local time, then it just exasperates the likelihood that the move's going to be exaggerated.
And that may or may not be indicative of the underlying direction of the day or if not very minimum, the morning session. So price comes back down. Does it go back down to the halfway point after leaving here? No. In this area upper quadrant, it's going to be less likely to have the...
The same degree of precision, why? If you look at my teachings in the core content of the 2016-2017 mentorship, I talked about price grading and then I talked about how in the upper quadrant there is less degree of precision because it's going to be more inclined to run and rip towards to, if it's bullish, it's going to just kind of leave that range and keep going or at least clear the high of that range and that high being the overnight range. The market trades back down, doesn't take out that low, doesn't trade back down to the middle of the overnight range, and consolidates roughly in here and then reaching again still higher. We're in an upper quadrant of what? That daily SIBI.
What's above this? We have Monday's October 14th daily high. So there's going to be buy side resting above that.
So if it's going to go higher, it's going to want to reach into this level. If continuing. Sticking with the higher time frame election year bias, it would likely draw, if it's going to be a perfect world, in a perfect world where there's re-delivery, that price right there is where that daily SIBBY's high is.
So to deliver back up to that price level would at least afford that old daily SIBBY to be rebalanced. It doesn't rebalance simply because it trades there. It needs to leave the range, higher or lower, respectively. Just going back to this level here, it's just simply re-delivery. That's not rebalanced.
All right, so give me a second here. These little girls are getting too rambunctious and starting to distract me. So bear with me one second. Okay. I know this stuff is amazing for being free.
I had to steal a drink too. Spring water baby. I don't drink alcohol.
I get high on life. Alright so you can see how sloppy and disorganized it is thus far. So that's why I said we're going to be waiting until 10 o'clock and we'll see what we get there in regards to the next price run higher or lower.
But I want you to think about how you can use the overnight range defined by 1201 midnight. New York local time and then the 5 a.m. well 4.59 rather.
Defining your chart like that and then getting the range measurements from the high, the upper quadrant, the middle or equilibrium, the lower quadrant, and the actual low. And then when we start and we transition, this is the this is the part I skipped over because I'm getting distracted by my dogs. I apologize for that. But this is what you get when you get it for free, right?
You're gonna have to be a little bit more patient. And not have an entitlement mindset. Because some of you guys are leaving comments that are just a little too rude and demanding.
And I just want to remind you that I'm doing this for free. And because I like doing it. Not because I'm obligated to. So at 6 o'clock, we change over. And that's your pre-market.
So at 6 a.m. New York local time to, listen now, to 9.30, right there, this is all pre-market session. There's so much opportunity inside of that range and you never need to trade to opening bell. You never need to trade the morning session. You never need to trade the launch macro.
You never need to trade the PM session. You never need to trade the last hour trading. If you have a job that requires you to be at work or you run a business or you go to university or if you're just simply in a different time zone and you can afford to use this area of price action, you don't need to do anything else, man. You don't need to do anything else.
It's ample. It gives you plenty of opportunity, plenty of it. Now, does that mean every single day you're going to find a winning trade there? Absolutely not. I can't guarantee that.
I can't guarantee that you're going to have the prowess or the skill set to make even one winning trade. Because so many of my students, they watch a video and they're in a rush to try to go out there and use it right away. Try to pass a combine, try to get a payout, whatever. You want to kind of like defer that and study.
The things I'm teaching you here are very, very top tier time aspects to what the algorithm will refer to. And it's dependent on you understanding. whether the market is in a protracted state, that means it's trending, it's going in one direction overnight.
If it's doing that, you cannot use what I just showed you here today. So what does that mean? You're going to see this actually get used more times than when it's trending.
So this is kind of like an MO in the morning where I generally will refer to what the overnight range was. I'll grade that price swing and all I have to do is determine if I'm bullish or bearish. If I'm bullish, then I'm going to be looking for every one of these gradient levels prior to the 6 a.m. pre-market trading session.
I'm going to look at those ranges, or the levels, rather. This is the low, the lower quadrant, equilibrium, upper quadrant, and the high, respectively, based on 12.01 to 5 a.m. That's easy stuff, folks.
It's really, really easy. Now, what do you think would happen if we were bearish? what we were watching this morning or what we were expecting this morning, we would be looking for PD arrays to form just above these respective levels to offer us some kind of a shorting opportunity.
You see how easy that is? It's very easy. It's not complicated.
It's not complex. It's not a lot of moving parts. You don't need to know what order block it is. You don't need to know what macro it is. Every macro, every macro, every 10 minute to the top of the hour to 10 minutes after the top of the hour.
okay how many do you have you have 5 56 10 that's one 650 7 10 that's two 750 810 that's three 8 50 9 10 that's four you have four opportunities plus you got the 8 30 algo where it comes online and starts running at 8 30. so you have five opportunities in pre-market that's the equivalent of the same thing you get in the last hour of trading you think that's coincidental No, it's absolutely not. It's all coded. It's all scripted. All these things that you're watching in price action and you're flipping out like, why did it do this? Let me write down.
I got to send a comment to ICT. Why did this fair value gap work, but this didn't work? I'm showing you that.
I'm teaching you that. But you have to see other things to understand and appreciate me pointing to that fair value gap. What makes this fair value gap good? It's below equilibrium.
It's in close proximity, but it's at a discount relative to that equilibrium price point. that this little purple line right here. I'm on real time.
You're never going to be able to see them on the hard right edge. It won't ever happen for you. It won't ever happen, but you'll complain and you'll say this stuff doesn't work, but you didn't win Robbins, but you didn't do this, but you didn't do that. Oh, but I'm out here telling you exactly how to do it. Come on, man.
You guys are making it too easy. So here is our focus for the 10 o'clock hour going into 10 30. I have to budget my time because I'm going to need about five minutes to review yesterday's trades with you and then we'll close it at 10 30. So we are looking at an abysmal opening range. We have buy side here, here, here, and then we have the Monday, October 14th.
We had a really Anemic, that means weak, very lackluster opening gap. What did I teach in the mentorship? for 2024 here if it's a small gap that is indicative of what a rather crummy low impact very lackluster not exciting not an easy run from entry to target morning session so my best advice for you okay this is what i'm telling my son you all can do what you want to do but i'm telling my and all the other boys that I have that are watching, I'm sure, the absence of a significant gap, okay?
An absence of a gap of like 45, 50 handles. I like that, okay? That's a minimum threshold for me, but I prefer 75 handles. That's what I'm looking for.
If you want to know that the morning session that I'm absolutely going in there and going right in there at the opening, As soon as the opening bell happens and we get our first print, I'm not even going to wait for the first fair value gap. That's just a model for my son, Caleb. I don't need that.
I'm going to trade with 70% likelihood that it's going to go back to half the gap if it's 75 handles or more. I'm going in there right away. I'm looking for reasons to do that. But what can we do if the gap is so small and it's... it's anemic in other words here's where we here's where we uh settled that yesterday at 4 14 p.m that opening i'm sorry that closing price there and then we opened up here so if we if we look at like this we have uh 20 631 and three quarters is your opening price and then you have The settlement price, previous day settlement at 612.75.
Like that's, it's weak. Like that's weak. That's like Patrick Whelan's course. It's weak. You can't, you can't really do anything with that.
So you have to do what? You have to expect more information. You have to sit still, just sit still. What do you wait for?
You wait till 10 o'clock. You work inside that 10 o'clock. to 11 o'clock silver bullet.
You wait for your very value out of the form, look for liquidity, and if it doesn't give it to you based on your bias or if it doesn't give it to you in a clear, obvious way, then you do nothing. Why? Because you were warned ahead of time there was very little bit of excitement or displacement, right?
The opening bell. Your opening price right there is so small into where we closed at 414. There has been no excitement created by that gap. So that means that we can have what?
A 50-50 delivery in the morning session. So what does that mean for you as a day trader that you have a little bit more time available to you? And you could trade the lunch macro or you could trade the PM session or you could trade the last hour trading.
That means that that's what you would defer your trading to. You would simply just go, okay, I'm gonna go and completely... remove myself from the charts this morning and I'll come back at 1 30. I'll watch the first 30 minutes going into two o'clock and then I'll trade the PM session.
Or I'm just going to let it do whatever it wants to do until 2 45 and then I'll sit down, get a view for what it's likely setting up and then I'll trade the last hour trading. Do you see how easy that is? It's easy to define, to manage your time, to schedule your participation in the marketplace versus I've got to get in front of the charts. I've got to push the button. I have to do something because what?
Well, I have to. That's what the traders do. I mean, we have to get out here and push the button and just figure out what happens afterwards.
FAFO, right? Well, you don't want to do that as a trader. That's gambling.
You're gambling. Just because the markets are printing and open doesn't mean it's time for you to trade. Professionals are not in here looking for every excuse to do something.
They're looking for the best choicest setups. If they don't, submit themselves to that. Are they following their model? No. Are they gambling?
Yes. Are they being impulsive and emotional? Most likely.
And that's exactly what you want to avoid doing. You don't want to do any of those things. In this mentorship in 2024, I've taught you how to sit still more than any other educator out there. And it's based on sound logic, that things that repeat that tell you to sit still, it ain't worth the risk.
Sit still, it ain't worth the time or the investment. The stops are going to be hit most likely. Your wrist is going to be larger.
The direction. becomes 50-50 during a very specific session. This one. If the gap is small, if it's anemic, that means sit still.
Sit still. Nothing forces you to get in there and trade it, period. Remember this sell side right here.
Let me get these lines off here because that's not all I'm doing is drawing attention to those prices, which we don't necessarily need now. Now, I personally would like to see the market create a close on this candlestick here, come back up, trade into this fair value gap, and then come down and take the sell side. That's what I would like to see. For some of you, this already went short because I pointed that sell side again out.
Now you're thinking, please don't retrace back up here now. Please don't. I'm going to take a look at the market.
We're looking at regular trading hours by the way and at 5.94 and a quarter is yesterday's afternoon. That's the start of the p.m. session. Notice that? 1.30, 2 o'clock.
That is a very repeating level of liquidity. When you look for your session highs and lows, you want to look at between 1.30 and 2 o'clock for your PM session. And you want to do that in the previous day and the day before that.
So for the last three days, you always want to look at the PM session highs and PM session lows. But you also want to start looking at whatever has formed at the beginning of 1.30 to 2 o'clock. that's that opening range going into the pm session so because that time window that 30 minute interval is synonymous with setting up the the direction uh the liquidity where the initial liquidity would be and here you can see they created these relative equal lows and then they rallied all the way up in the afternoon now we're getting ready to pierce underneath that and it's because that that liquidity is a constant it's it's something that you can go back to on a time based uh principle it's not something random it's not something ambiguous it's not something that constantly morphs into something else that you can't trust and rely on it's a very static thing like 8 30 is just like 9 30 is just like 9 30 to 10 o'clock is they're very specific elements of time so because that time aspect is it's finite it's not it's not changing it's something that will always be a factor for the algorithm so just know that Between 1.30 and 2 o'clock, whatever has formed at that 30-minute interval, above or below it, there's going to be liquidity there. And if the market is likely to draw back into it, and you saw it in here today, if it's likely to do that, see these two lows here? She's trying to get out of that kennel.
This guy lets his dogs make all this noise. And I'm trying to record all this stuff. Let's go back to electronic trading hours.
So upper quadrant on the daily SIBI. See that? We're breaking down into these lows over here.
There's a little bit of liquidity in there as well. And if we lose the overnight low, which is this level down here, then it becomes a lot more significant for the morning session. Hang on one second.
I had to trick Piper. She wouldn't go in her kennel unless I give her a treat. So we came down below here and now we want to look at the overnight lows. And here we come.
just like that so when we're looking for morning session runs price runs unless we've had a protracted market delivery overnight that means where and you've you've asked me this a couple weeks ago where we had the asian session just it just started right away and started running one direction this concept of using the overnight range because it wouldn't be part of a consolidation a market protraction and that means the market's trending you don't want to do that you don't want to measure that and expect these levels to have any kind of importance if it's part of anything other than that then it's part of a consolidation so it's a lot more likely that it's going to form using these types of ideas than without it meaning that you can use this idea this concept because i do it every single day if there is not been an overnight trend and i go in and i measure where my PDA arrays should likely form around price. Then I simply submit myself to the aspect of time. I know that the macro is going to be this, this, this, this, this.
Every 20 minutes of each hour, it's the first 10 minutes before the top of the hour. Or let me say it this way. It's the last 10 minutes of the existing present hour to the new top of the new hour, to 10 minutes after that new hour.
So it's whatever hour it is, 50 minutes. After that hour to 10 minutes after the new hour, so it's always at 20 minute interval there There's always some kind of price run where it's spooling for liquidity or reaching into an inefficiency These macros are more sensitive because they're more prone to deliver price because of the increased measure of order flow That's coming in and it's used to facilitate that where it graduates their introduction to the marketplace where large institutions, large firms, large insurance companies, large entities, they have big, big blocks of orders they have to push through the marketplace. They're not going out there and just throwing them all in one time.
They're easing them in. They're easing them in. And a dealer will facilitate that for them who's clearing their trades for them. And they will push them through at appropriate times. Sometimes those times may be appropriate more so for the dealer so that way they can they can make an in-house book and use that that threshold that this entity has said look i would like to make a purchase of this whatever or i would like to sell or distribute this but i want you know try to get an average price of this much or or better so that function that's existing with without you realizing it, without you knowing it, because you're looking at chart patterns and things like that, you don't understand what the actual financial markets are doing and how they facilitate trade on a large scale.
They use these macros to shove that liquidity through the marketplace. That's why they're there. That's why that happens.
That's the function of what they're doing. So it's kind of like a built-in mechanism to allow and afford large entities, which you're not, I'm not, and it allows them at every hour. because people are watching how much time they got left in the trading day. How much time does it take between where I'm looking at it right now and when the opening bell happens?
The whole time the market is being pushed through this aspect of time. And you can only get so many orders through during a small window of time. And because of that, It has to happen around a specific price level for these large entities.
They just can't go in there and just buy it at the market because they feel like it's going to go higher. They have to go in in measured, appropriated, staggered movements. Otherwise, they're never going to get efficient fills. They're never going to get efficient executions because they're trying to get an average cost price that's appropriate for them, for their risk model, or for whatever their customer needs are. why they're going into the marketplace to do anything, whether buying or selling.
So at every 60 minute interval, there's this short little span of time. It's 20 minutes. And during that 20 minute timeframe, they're shoving orders through. They're piping them through.
It's not their entire block of orders. It's just that's when they're starting to push them through. Okay.
They're not looking at these weird numbers that I see people always tweeting to me. Oh yeah. I see you.
I see you. 8, 11, 9. Well, it's nonsense. They think they figured something out. I swear to God Almighty, none of that stuff has anything to do.
None of that stuff has anything to do with what I'm doing or what the algorithm is doing. I promise you. I promise you. Okay. It has nothing to do with gold box stuff.
Okay. I promise you. If you use that stuff and it's helping you, God bless you. I swear to God, it has nothing to do.
There's nothing going on with that information in here. Okay. I promise you it's not happening, but it's these aspects of the time element that I'm forcing you to spend more time looking at. And because we're leading up to the opening about 930, every hour that creates that macro in during the pre-market session at six o'clock to 930, there is several opportunities for you to anticipate where my PDRs are going to form. You're not going to be surprised by them.
You're not going to be like, where'd that come from? You're going to be anticipating them, expecting them. And in relationship to your bias, where it's likely to reach to, how far it's going to go. It went to the upper quadrant of that daily SIBI, sweeping the relative equal highs here, here, and here.
What did they leave? What's above that? My side. Do you, because you see this drop down in here, do you abandon the bullishness on the daily chart because you see that?
So many retail traders would. So many retail traders see that kind of stuff and that's exactly how they use this type of price action. It discourages them to want to be long. It discourages them to ever want to consider that maybe the higher timeframe, you know, just had a little retracement today and it wants to go higher for the next three weeks until we get into the election.
Knowing what you're looking at in terms of the delivery of market protraction, that means when the market is just running one direction, like this would be a market protraction for instance, it's this one-sidedness, but it's a very small one because it's only been going for about what, 40 minutes or so? Not even, about a half an hour. That's a very small market protraction. It's one-sided, one-sided delivery. If the overnight is behaving that way from Asia all through London, if it's doing something like that, you do not do what I showed you this morning because it's not going to help you.
But I have tools for when it's doing the protraction. I can't teach it all today because it would take me longer to do it. But here, when it's part of a large consolidation and there is no one-sided protraction overnight and it's part of consolidation, just simply get the high and the low.
and then grade it with the lower quadrant, equilibrium, and upper quadrant. Stick to the bias that's determined on the higher time frame. We have been bullish.
So it's going to reach for what? You're going to reach for some measure of a premium array. Well that SIB that we looked at, that's the upper quadrant level here. And it reaches into that multiple times offering what? It's like playing horseshoes.
You ever play horseshoes in the United States? We have a game where you take these two metal poles, you pound them in the ground, and you actually take horseshoes Horse, I know there's going to be people that don't know what I'm talking about because it's from another language or a different part of the country. But basically, the metal apparatus that gets hammered on the bottom of a horse's foot in its hoof, we have created this game.
It's been a long, long time. I can't tell you how long it's been in existence. But the object of the game is to take this horseshoe and toss it at this post that you nailed into the ground. And you're trying to get a ringer, it's called. where the horseshoe will go around the post and That's what you're anticipating is you're seeing this level here, the high of the overnight range, the Monday high, and then if it was a keep going up in here, that's the high of the daily SIBI.
So what you're doing is with your orders while you're long, you're tossing partials into these levels, trying to secure a ringer, trying to get a profitable exit. But if you don't know what you're doing with finding... fair value gaps, this is going to help you because it's going to give you a degree of understanding a general proximity in terms of price, where it should form, but how to qualify it. If it's below a level from the overnight range and you're bullish, that means your discount. So that means every fair value gap below these gradient levels of the overnight range, that makes it a high probability, high probability, not it might work.
I hope this one holds up. These are the ones I'm trading on. This is the ICT fair value gap that I'm trading on. These are the ones where I go in there and I'll put six contracts on.
It runs away from it, comes back down, touches the top of it again. I'm adding four more contracts there. And then it rallies up and it goes into this one here.
Because it's below half of the move or equilibrium, it's still in a discount. And it's a discount relative to this level here with that fair value gap. And then I'll add more there. I'll pyramid.
So what did I just teach you here today? I taught you how to find the right fair value gaps, how to qualify and quantify them, not in ambiguous terms, very specific, finite terms, based on time, how everything comes together and it just beautifully dovetails together. But there's no algorithm, right?
There's no algorithm. And the market rallies, and it reaches the clear the buy stops above here, which is the overnight range. And then it doesn't just go above here by a little bit.
It goes above to touch that daily SIBI, that sell sign of balance, buy sign of efficiency. The upper quadrant before it completely fills it in by going all the way up to here. There's a lot of range still there. And then that range just was increased by this dropping down, taking out overnight lows. So my question to you is this, does this make sense to you in terms of defining which fair value gap?
And I know there's some of you that are brand new or just recently came onto my stuff and you're thinking, this doesn't make any sense to me. I understand that it wouldn't for you because you're too new. But for the folks that have been dabbling with them, studying them, backtesting and looking for fair value gaps, and you have asked yourself the question all the time. I guarantee you have. How is he picking that fair value gap?
Why is he getting in there? Why is my entries taking off as soon as I get into them? That's the repeating questions that come to me by my paid students. That's the same questions that come to me by way of the comment section that you don't see, but you can leave a comment. I can see it, but nobody else can see it because I don't want all that love fest.
And yes, there's people out there saying you're a fraud. You haven't done this. You haven't done that.
I don't care about that. What I'm showing you is the stuff that works. I'm telling you when I pick the fair bag apps that I trade on, I'm using predominantly this right here. Okay. There's other things that I do.
further increase the likelihood of me being correct about the fair bag. But this in itself is the easiest go-to strategy plan for you to be able to formulate an approach to saying, okay, I trust that the bias is bullish. I trust that the bias is bearish. Based on that logic, you're simply going to use this information as I showed here today.
This is not a lecture where you're going to watch it one time and you're going to understand what I just said, because you're going to need to refer back to it a few times. You're going to go and look at old data and then refer back to what I said here, because I guarantee what I've said here, you're going to think that I created an edited format because it went where we had the first time. Because you already have some idea in mind what you're reaching for for a model. And you're trying to take every new little thing I talk about and press it into that to make it click for you so you can go out there and start making money. You have to try to defer that.
Push that aside. Just because you're now learning more ideas about... what makes a fair value gap valid or not.
What happens when that shift in sentiment changes from you're not bullish for that morning session or that afternoon session anymore? What do you do then? Everything that you used here on the upside becomes what?
Part of a market maker sell model. So everything over here that would be a bullish fair value gap will become an inversion fair value gap over here. Anything over here that would be an order block that would be bullish would be an inverted block. Basically, it would reverse its role and characteristic as a bearish order block.
It would repeat, it would reverse its role. And this is a lower quadrant on that civvy right here. Now when you have a range like overnight range and you define it like that, other things you can do is you can do extensions off of that and get an idea of how far it can go for targeting, for partials, for potential reversal patterns.
What you would do is you simply take the range and the first one is you always want to reach for is the negative 0.5 level and that one's here and then as one standard deviation which is that and we hit the lower quadrant on that cibi on the daily chart let's go back out to the daily chart real quick let me take these off for a moment because there'll be too many lines on the chart otherwise this candlestick is the cibi i keep referring to on the daily chart you can see up here daily July 17, 2024. It's a Wednesday. That singular down-closed candle, that's the city. This is the low of it. That candlestick's high. This is the high of it.
This candlestick's low. Equilibrium. Lower quadrant is 20,489.
The low of it is 410 even. 20,489. Go back into a one-minute chart. 489 is that level right there.
See that? So we traded down to and below equilibrium of that daily civvy and what did it do there protraction lower reaching down to the lower quadrant that's the low of the daily city right here i'm a little bit over my time so let me go back to yesterday's real quick and we'll look at the I think I got a chart already set up for this. Give me a second. A 30 second. All right, so if you follow me on Twitter or X, I shared this yesterday and I was out running around with my wife shopping again.
Any excuse for her to use credit cards? She's going to jump on it. Honey, we could save 30% if we get this right here.
You know what I tell her? I could save 100% if I don't buy it at all. We don't need that stuff.
But, you know, that's wife math. Ladies, don't come at me. Okay, don't come at me. I'm just being honest. All right, so here we have the session yesterday.
Okay, and... Thursday, October 10th, 2024 daily high. So we have done what?
We went above it here, came back down, went below it, once more back above it, once more below it, and then we rallied back above. And we're keeping what? Relative equal highs.
We have minor buy side. And it's also what? It's an election year.
It's bullish. The market's likely to continue going higher. And we've already explored the likelihood of digging back down into October 9th daily candle.
That's the high of that. So look on your daily chart, Thursday, October 10th of this year, note that high. And then we drop back down into a one minute chart, or in this case, it's 30 seconds.
Every candlestick on this chart is 30 seconds. So what we're looking at is, I'm not trading support resistance, okay? Because the idea of support resistance would say this, this is the daily high on October 10th.
We went above it. When it came back down, touched it right here. If we were just simply expecting the old highs and lows of a previous day or a previous week, then that right there should have turned the market higher and started going higher. And that's what I expected as a 20-year-old because the books that I read said that that's how support resistance would work.
They give you these perfect examples, these perfect little things that would create this opportunity of wonderful repeating phenomenon where you can go in and make all the money you ever want and quit your job in two weeks. I had unrealistic expectations. expectations just like all of you have when you come to watch my content for the first time So I'm not a support resistance trader, but I do use the order flow around old highs and old lows. If you are not aware of the old highs in the last week, every individual day, you want to know every single daily high and low of the last five days and at least Friday of last week.
You want to know what last week's high and low was. Those levels are going to give you what I'm going to show you right here. This is an endless supply of setups, okay?
I want you to sit still for a second. Put down your writing instrument for a moment, okay? Let me just think for a second. Think. What would it feel like if you knew, not guessed, not was influenced by me or anybody else, what if you knew how to go into an endless supply of new setups?
that it's never going to hide from you. It's never going to be changed. They're not going to change this, okay?
This is not something that they're going to change the algorithm. You're never going to be able to take advantage of this anymore. This is always going to be there, folks, okay?
I want you to understand that. I want you to get excited about this part. This is where you can allow your emotions to come into it. I want you to feel happy and excited because it's absolutely an endless supply of setups, period. It will never be exhausted, okay?
If we're bullish, if we're expecting higher prices, by knowing the highs in the last five days and at least the previous week's Friday and then knowing the previous week's high and low, you will always know where order flow is gonna come in and all you have to do is wait for the displacement. And what does that look like? Well, here we have the rally above, the high on October 10th, that's this level here, okay?
If you... put this on your own chart. This is why I'm leaving parts of this stuff out so that way it causes you to have an interactive study where you have to go into your charts, highlight the actual high of October 10th, 2024 is high. It's last Thursday. Okay.
But putting that chart, I'm sorry, putting that line on your chart and then watching how price gyrates above it and comes back down. It doesn't stop there and go higher. Even though it's bullish, it does not stop there and go higher.
It does what? It digs back down into the range. That's exactly what you want to see. Because what that's doing is it's offering you the opportunity to study and measure its willingness to go deeper into that range.
Does it want to do so? No. How do we know that?
Because we leave that range and go back above the high of October 10th again here. And then what does it do? Do we buy it now because it does this and touches it?
No. Give it an opportunity to run back down in. Does it want to take the relative equal lows here?
No. It's left the bait here because you're being trained to look for relative equal lows to be traded to. But what happens if it doesn't do it? It's telling you what?
It's not likely to go lower. And if it's not likely to go lower when you're already predisposed to expect higher prices, then you're what? You're in a buy program.
Then expect protraction higher. You see that here. The market rallies back above October 10th. Now, are we looking for the market to come back down and touch that high like support and resistance folks would assume? No, absolutely not.
What we're looking for is any inefficiency on the pass down that will act as an inversion fair value gap. That's what this is right here. Now, as it's dropping down, I'm looking at that fair value gap, knowing that if it's really good, it won't even touch it because we spent some time in here and then left it.
I'm going long right in here. I'll show you the executions in a moment. Okay. And then the market rallies up and it leaves these relative equal highs. And I'm noting in the video that you can watch on Twitter, I'm noting these volume imbalances.
Volume imbalances are the most flexible, or it's the PD array of my repertoire, that you as the analyst, you as the trader, you as the implementer behind pushing a button, if you ever decide to do that, you're going to see price go through these types of things, okay? Because it's... a measurement of a willingness to see the price sustain and run higher or lower.
It can be used as an entry. It can be used as a partial. It can be used as managing your stock loss.
But I like looking for these little tiny pockets in price action. And it's basically the absence, if you look real close, it's the absence between this candlestick's body or open and this candlestick's close. There is a wick touching, but there's no bodies there.
That's what I'm highlighting in that video. it's got a little music track added to it on on twitter same thing here small little separation between the candlesticks bodies There's one in here, but I'm not worried about that one because I've framed one here and I've framed one here and I'm watching how price behaves. But then this fair value gap, which is what I was aiming as I entered the first time and added multiple entries on.
Then when it dropped down in here and it closed that initially right to that low, I fired in there again. But I had already typed out that the launch time is now. I said at 830, the market's going to spool higher.
Go watch that recording. You'll see every annotation just as I typed it then. Everything here is exactly how I left it when I recorded that live execution.
But I timed it and told you very specifically the launch time is now. Why? How did I know that? How did I know that was going to happen?
Because at 830, if I'm bullish, I want to see the price drop down to a discount array. That's this fair value gap. It could have went down and touched this inversion fair value gap.
And it would have been fine. It would not have. it would not have changed anything, but because it didn't touch it here and it created this fair value gap and it already started to run up and left these relative equal highs. I know it's just coming back down in here to re-deliver into here. That's why you'll see when I'm adding the executions on the chart, you'll see that that's where I fired in and added my last portion.
And I've already anticipated that by saying that the launch time is now. Hits it, stops the tick and starts to rally up. And then I'm watching do these.
Volume imbalances support price. It trades up to it. Look at the bodies.
You're respecting it. Then it comes back down. Look at the bodies.
See that? See, the assholes and asshats, they're watching these wicks and they're looking at this. Look at this stuff. It doesn't have any rhyme or reason what's going on. You're a fucking clown.
Look real close. You see the bodies? See what those bodies are telling you?
It's respecting that inefficiency right there between these two candlestick bodies. That's exactly what I'm watching. That's algorithmic price delivery.
That's the very thing that I'm looking for. And if price runs away from that, then I know that if I wanted to, I could add more when it's inside that little volume imbalance there and add more to it and then rally up. Or I could take this drop down in here and trade this inefficiency or fair value gap. And that could have been an entry. Why?
Because this volume imbalance is here and I'm trading in a fair value gap that's below that volume imbalance. That means we're in a discount. during a market that's bullish after the algorithm starts firing at 830 and then volume imbalance right there. I was going to annotate that, but I had missed it because I was looking at my dogs at the time and I didn't want to go and add anything to it. But anyone watching that trade, just as well as you can see it right here, you can see it.
It's being utilized right there. Consequent encroachment. That's the midpoint of this separation.
These little pockets, okay? These little tiny little separations in the volume. of the candlestick.
You cannot get this information in any other aspect of charting. So when you listen to these clowns, these fucking clueless idiots, these fucking dweebs, okay, these people that have zero understanding, zero understanding why price books, they'll say time-based charts are trash. Time-based charts are useless. You have no idea what you're talking about. You have literally no idea.
No one's ever told you how to use a time-based chart until I started talking about it. And holy shit, did I just step into narcissistic pile shit right there? Didn't I?
Well, guess what? Scoop up and swallow because it's the truth. No one ever told you to look at the candlesticks like I'm teaching you to look at them.
No one's ever told you to focus on the elements of time using these candlesticks with this information before. It's never been done before because I codified it. This is my fucking shit, okay?
And when you guys are making these fucking videos and I'm coming out here doing it over every single day, over and over and over again, I'm laughing at you. I'm laughing at you. because you're taking the bait.
You're doing exactly what I want because more people are coming here and they're watching the technical science being taught. And more people this rest of this year are gonna be making more money using this shit. More money, more testimonies coming forward.
So keep bringing them here. I love it. You're working for free. Keep them coming.
Engagement farming done right. So I wanna take a look at the executions here, okay? This is probably gonna be a little jarring for some of you.
So as the market's trading and we're dropping down, okay, and you can see clearly this is not market replay. Okay, see that? Can't do that in market replay. But the entries in here, look inside this fair value gap.
It's in the lower half of that fair value gap. That, that is at the top as it's hitting it right here. In this volume imbalance, as it's trading down here, I'm trying to time it as it hits it, but it's kind of difficult when you're doing it on a 30-second chart.
I'm doing it where I'm pushing into the price action as it's going in a direction I want it to go, which is opposed to the direction I'm trading in. So in other words, I'm trying to enter when the market's going down. I'm never trying to go in when the market's going up.
If the candlestick's painting bullishly, I don't want to be going in after the candlesticks started going higher. Now, it might open, like in this case here, we have the candlestick opening up here and trading down. That's ideal. I'm sorry, I said that wrong. It opens up down here and trades higher.
So it's creating a bullish candlestick. In this candlestick, I'm trying to trade as it's fluctuating around and in close proximity to that volume imbalance. That's what I'm trying to aim for. And over here, same premise.
I'm trying to time it as it's entering into that volume imbalance. Here, I'm trading inside of this little separation. I'm trying to get that little return back into that candlestick as well. Here, similar. Down here, I'm trying to time it as it's...
trading down into this fair value gap. All of these could be further refined if I was willing to use a limit order, but I'm trying to force myself to use every aspect of proving it's not market replay. So that's why the open and close or the buy and entry, so button for buying this basically.
You don't see that in market replay. Okay, so it's actually better that I just did that. this way of showing it to you so that way anybody that understands TradingView knows that this is not market replay. And anybody can do market replay and make it look good.
Anybody can do that. But I'm teaching you how to read 30-second chart, okay? Why 30-second chart? Why not a 15-second chart?
Because the price is a little bit cleaner, a little bit more refined. A 15-second chart's a little bit more spotty in here. Spotty means that there's a lot more volume imbalances. I like to have a chart, and this is where you don't, this is the part where you write down. I like to use a timeframe that's sub one minute that doesn't have a plethora or an exaggerated number of volume imbalances.
I want to have like a few of them. So I want to be able to see them if they form. But if I'm looking at a, like a five second chart, I'm going to have a whole lot more to choose from.
And I don't want that. So the 15 second, I didn't like it. So I focused on the 30 second. And I'm only using the 30 second chart just to kind of like drive home the emphasis that I am not a one minute chart trader.
I'm not a five minute chart trader. I'm not a 60 minute chart trader. I'm a price trader.
I'm a time based price delivery trader, an algorithmic delivery trader. So I'm looking at price in a way where I'm expecting it to behave a certain way. with these repeating phenomenon that I titled PD arrays around specific elements of time. So because 830 here is the 830 window right there, this candlestick when we get close to the top of the fairway, I'm getting in there and then finally hammering it as it's creating that down close candle right there, I'm hitting that and there's the entry.
At the time I'm telling you that the launch time is now. So it drops down and then right from there creates these little Confirming that I'm on side. That's what these little candlestick bodies are telling me folks.
Okay, I'm on side I'm on side and then I'm expecting price to rip and it does and then you start seeing it run up It gets this little volume of balance tagged right there and rallies up and then there's the ejected now I could have held for longer Okay, there's a Joker on Twitter likes to come after the fact all the time You never see a stop-loss in this trades and never see him execute either. He's always got some kind of screenshot That's kind of lame Show your execution while you're doing it. Move a stop loss.
You don't have a stop loss in there because you're using something that you don't need to trust. I have a stop loss in every single one of my executions. It's always there.
It's always being managed and everybody sees the repeating phenomenon and routine that I'm using. I'm not rushing it to break even. I'm not rushing it to strangle the profit. But yesterday, I couldn't stay to babysit the rest of the position.
I told you last week that 20,538 was our objective. It didn't trade there last week, but guess what I did yesterday? traded to $20,538. And it did that. I had a limit order to get me out there.
I had enough time to hurry up and compress it, throw a music track on there, and out the door I went. So I was not able, I was not able to sit and ride all this up and babysit it. My wife asked me to stay off the phone for the time we were out, and I honored that request, okay? So in the afternoon, a little bit later, what do you see here?
What's this? Who's this? It's a fair value guy, Sibby. Market trades up into it.
I'm entering. Again, on a 30-second chart, there's my fills, and it drops down. I'm willing to see it come back up in to this breaker. So that means I have to afford myself what? the likelihood of going into drawdown.
But if it trades back there, I'm going to add more to it. But I need a little bit more information should it do so. What information is that? Well, it's trading up into that quadrant level.
Breaks lower, creates another fair value gap, entry. I'm waiting for the market to do what? Show a willingness to take buy stops there at a quadrant, breaks, fair value gap, entry. Same thing here. I'm looking at this WIC.
I'm trying to time it with this fair value gap being traded to. I want to get in there at that WIC's consequent encouragement right here. And that's a whole lot of stuff. I can get it down to just the middle level.
It's fun, ain't it? And it's fun. Man, this is so much better than college. Some of you guys that are younger, your parents may be listening and thinking, what the hell did he just say? You need to stop listening to this guy.
I'm paying too much for this college. So I'm trying to time it right there at the consequent encroachment of that wick right there, adding more to it. And then I shared live as it was aiming for the cell side below here, knowing that we had an abbreviated session yesterday because of holiday.
And I wanted to get out when it took that cell side there, because it would most likely draw back up into the middle of the range between here. And here, worst case scenario, and best case scenario, we could come back up and try to take that high out. So I didn't want to ride any of that in. So I went short, added more there. And then the fill, as it was aiming for this low, I wanted to make sure I get out.
So I had to limit order just above it. So there you go. That's low hanging fruit objective.
That's the level I'm looking for. The sell side below, that's what I want to see it trade to. But my exits are sliding on into home.
I don't require that low to be taken out. Why? because I might be wrong because it's a holiday.
They may not want to come back down in there. They may want to do that at 6 o'clock's restart in the afternoon or in the evening time when they resume trading again. So that's where my exit was there. And then that's the business.
So let's take this back over here. And I think that's going to be it for today. This is a first presented Fairbally Gap from last week. I don't recall on what day it is, but it was, I think it was on the second half of the week.
So either Wednesday or Thursday, look at that and you'll see that that's what that is. Another reason why you should annotate your charts with these labels like this. I don't need to do that because I write my stuff down on a notepad, but... That's a first presenter fair value gap to these two dark thick lines there.
So I've covered a lot of stuff today. I talked about how I picked the right fair value gap, what constitutes qualifying the fair value gap. I talked about the overnight range, how to use that.
When is it useful? When is it not useful? If it's part of a larger consolidation, you're going to grade it.
If you're doing a market protraction overnight, you're not going to do that at all. And you'll have to trade differently. And also, if you have a market protraction overnight, that usually puts you on the sidelines in the morning session. So you already had a big move overnight.
So expect the New York session to be either a market reversal profile or consolidation, meaning that unless you're very versed with reversal patterns, don't trade the morning session if you have an overnight trending market, and then wait for a launch reversal or PM session trade or trade the last hour trade. So there's a whole lot of conditions there that helps you. Should have helped you, rather, define when you should expect something to form, when you should sit still, when should you feel comfortable sitting still, and why should you feel comfortable sitting still. Also, where the fair value gaps are best.
What's the best ones? What's the ones I'm going to be trading in? What's the one that I have elected to trade on?
And it's based on premium and discount. It's based on a previous range that the algorithm will refer back to. It's not ambiguous. It's not some kind of contrivance. you know, made up stuff.
It's something that you'll go back in the charts and see over and over again, repeating constantly, always there, always there. And what happens if you don't see these elements in price action? Then you have manual intervention. That means you should sit on your hands and don't do anything. If the PV arrays that you're highlighting are not responding and respecting price the way they should, remember, inefficiencies, fair value gaps, you don't want to see them hanging around in them.
Trade into them, leave. And if you have defined your fair value gaps based on your bias with the overnight range, as I showed you here by grading it, you know the general proximity of where a fair value gap. or order block or breaker or stop run is going to form. All of the PDA arrays are going to gravitate around these levels. Don't just think it's just fair value yet.
It's not just that. It's whatever PDA array that's going to be given to you at that time with price being utilized for that purpose. Meaning during the macro or 830, because there's the only departure, it's always the 50 minute after to 10 minute after. That's the element of time when the price is going to start spooling. during the pre-market sessions.
There's several hours there that you can do that with. But there's one outlier. It's the 830. 830 does its own thing. That's when the algorithm comes online and it's full force just run because it's going to push price around for that first hour ahead of 930 opening. That's what it's doing.
That's its function. Okay. So, and it's also allowing a lot of orders to be pushed through when there's economic data. Remember I was telling you about earlier how the dealers that are facilitating and executing the orders for large entities that are not necessarily always trading for the purpose of trading for profit. They're not out there trading competing against you.
They just are holding risk or they're window dressing their portfolio. I mean they're cycling through and reappropriating things in other asset classes and other other instruments. So if they're trying to unload something or acquire it, the dealer will facilitate their requirements. and expectations by pushing the orders through at these very high volume times.
And that's what's going on. Okay. That's exactly what's going on.
You're not going to see it in your fucking books. You're not going to hear some Joe Schmo on the fucking internet tell you this is what is going on, but that's exactly what's going on. Okay.
So when you have this perfect storm of all this order flow coming in, that is not causing the market to go up and down. They're utilizing that high volume. Okay.
Not high volume, but that high traffic time where there's more participation. It's easy to throw those orders into the marketplace. They're consumed quickly.
And it doesn't mean that the market is going to go really high or really low because they push that volume in. Remember, that big volume is being broken up throughout the day, throughout the morning, throughout the several hours they're pushing those orders in. You're not going to get a company like, I don't even want to put a person's or company name out there.
It's just a large conglomerate, large entity that would be trading very, very large. their entire order is not getting pushed through on one pass through. They're not just saying, hey, you know, sell me, you know, $15 billion worth of spoofs, you know, at the market.
They're never doing that. That's never happening. Okay.
So what they'll do is they know that their dealer has been given instructions, okay, to facilitate that request. But average cost needs to be a part of it. They're not willing to have this position. either accumulated or distributed without at least factoring in some measure of value that they're hoping to hold onto or acquire in purchasing it.
So that's what's really going on. That's behind the scenes. That's what's going on with these times and what the order flow is coming through is doing.
And that's not going to cause price to go up and down. It's just going to be that much more of time and sales being booked and printed, but the price is going to go where the price is going to go. And they have no control over it. You don't have any control over it. And we're looking for the maximum damage.
Where can it move the most to hurt whoever's been making money? Okay. So I would love to keep on talking. I really want to. I've already went over more than I want to do with my time.
So I'm going to close this one. Wish you all a very pleasant day. I will be back with you tomorrow, Lord willing, at 925-ish tomorrow. We'll meet again. and I'll give you some more information about macros and algorithmic price literally.
Until I talk to you then, be safe.