Okay folks, we are in the second teaching of a series of eight for the month of September 2016. And you've seen this before, but I just want to bring this up to you one more time. This is the market efficiency paradigm. And what this generally is depicting, or what I was trying to communicate by drawing it out, is we as new traders...
are collectively part of this larger hole over here of uninformed money and whether we acknowledge it or whether we believe it or what we will invariably come in contact with with the understanding that there is a smart money group of traders out there. And when I first got involved in trading, I didn't know anything about smart money. I just knew that the markets were potentially there and I could be profitable.
And in fact, I was going to be profitable. I knew it. I couldn't believe that I would ever lose money until I lost it.
So when we as traders look at the marketplace as new investors, new traders, new speculators, we may or may not have the understanding that there is a smart money entity out there. And we as the larger populace of retail-minded trading, We think because of our sheer vastness, we are the driver of this apparatus that's called the marketplace. And we tend to think of ourselves as the drive axle of what makes the markets go up and down. which is the facet that's the facade of supply and demand that's the facade of trend lines driving price when it touches it that's the facade of moving average crossovers causing prices go up or down that's the facade that's perpetuated and we are led to believe that that's exactly what takes place either in books or in seminars or in webinars or gurus people and I've done this when I was younger too I thought I was convinced that indicators drew price up and down and I packed houses on America online when I got on a chat room and people were in there flocking to hear the things that I would discuss about stochastic and RSI and Williamson are and I was talking about three moment indicators when you if you're just gonna follow momentum just follow one so if anyone knows more about being in this group over here trust me it's me I've been I've been in this group enough to know that I learned more about this group over here that doesn't like to draw too much attention to itself the contrast that with everybody in the retail we all have Twitter accounts we all have my effects books that we're sharing we're all trying to be on Instagram showing land Lamborghinis and whatever else. Houses, cars, boats, yachts.
Girlfriends, they ain't even yours. Everybody is living large over here in the uninformed money. And smart money is over here quietly just doing their thing.
Who's inside this small circle over here? The banks. Who's in here? Everybody on social media.
Everybody in a retail account. All the gurus and teachers out there. that have things that they're selling services and yes I have a new service but what I'm teaching you ain't available anywhere else see this group this large populace of people they think and I was part of this group initially they think that the sheer vastness and size of them is much more controlling in terms of where price is going to be driven higher or lower because of the buying and selling pressure that's equated to their mere involvement in in price and that's a facade this huge populace of trading people or traders community in the retail realm is really not that big but we are led to believe that we are huge and we are given this this idea of ourselves that were giants we push price around and we don't we don't in fact it's this small little group of traders okay they're the ones that influence this entire mechanism that we call the markets this small little group of traders is actually the drive shaft and if this was a belt like on a car okay like an alternator this is the actual motor spinning the whole price higher lower it's not this big circle of people So it has to be a paradigm shift. See, if you're over here thinking that it's the group of traders that is online talking amongst themselves as a whole, they're the ones that make price go up and down because of their buying and selling interest.
Because the supply and demand factors around them, that's what pushes price around. That's a facade. And I'm here to tell you that you need to put that to bed now. Because I'm going to level everything you've ever imagined about the marketplace and how it really works. really works you have no idea where we're going and you need to leave this realm in this circle of people and their thought processes and transition and have a paradigm shift in your thought process about how the markets are efficient because they're not efficient for the speculators they're efficient for the smart money the banks drive price whether you want to accept it or not that's what's going on and the sooner you get to that understanding and expectation of what it is that's going on in price it's not for your well-being it's for the bank's well-being it's their business they are the liquidity provider everyone else's liquidity are you a lamb or a lion Which one?
Because one of us is going to eat meat and the other one is going to stand there looking stupid eating grass. I don't want to be a part of this herd. I didn't want to be a part of it.
Once I understood where I was, I wanted to get out of there and I wanted to live a real life. here in a small area and for years I quietly made money doing nothing but focusing on the things as new to this small group of entity of traders did and I looked at these individuals and initially with the stain Thinking I'm gonna come after you. I'm gonna devour you I'm gonna do the same thing and then as I looked at it more and more and heard stories about people and their lives losing their homes marriages It tugged on me, and I didn't want to just be over here Being like the banks, and then I bridged over into what you saw me do in 2010 And I revealed a lot of things in this mentorship you're gonna going to learn a whole lot.
But it's not meant for you to share it on your YouTube channel. It's not meant for you to share it on your blog. It's not meant for you to pass it around on Twitter, Instagram, make torrents. It's not supposed to be there. It's only supposed to be between you and I.
You're welcome to share this information with your children and your family members. Start a legacy. But don't make this common knowledge.
It's going to happen. Some goober is going to take this stuff and be the one that, you know, I'm the cool guy. I'm the one that got in there and made it all accessible to everyone else.
She can feel like the hero. You're not really doing yourself a favor. Let this stuff stay well hidden. You're paying for it.
Appreciate it for what it is and don't share it. It's not going mainstream. This is the group that we have.
Whoever can make it in between October 1st and now, that's it. That's it. Because when we leave September and October, we're buttoning up all of the free tutorial stuff and we're going right into the nuts and bolts of where we got to go to get to the latter months. See, when we come into the marketplace, we don't understand this. We think that this group that we're part of, we are the market.
We are the market. market where the traders we push price up and down but if you are honest with yourself if you've traded at any time and you look back on your trading you probably looked at the market you saw something like this you knew something was going on and you just you just couldn't put it together you see these big things that take place in marketplace your stock gets run it looked exactly like it was going to go up but it came all the way down not to end and then went up you see these things happening to you you just can't figure it out you know there's something to it you had the sensation that you have this is rigged my brokers have to get me it's not really your broker it's the interbank feed that drives price against the funds and the brokers are going to expand the spread as well on you and knock you out when you look at the price action as a new trader and you I didn't have this exposure to understanding how the markets are being driven and manipulated to the degree of every single minute detail. They're absolutely controlled.
It's an AI. It's artificially intelligent. You are not trading against a person anymore.
It's a computer program that delivers price. And it knows human behavior because it's the same way it's been always. Fear and greed.
So when you look at price, and you've been trading for a while, and you had this... fuzzy picture about something going on behind the scenes but never really understanding what it was until you met me and suddenly there's clarity suddenly you understand that there's something it's been there all along now you can identify it and what's more important is you understand how to track it and do the same thing it does and by default you become a resident of that small circle because this small circle is the drive shaft it which makes the markets go around it's not the big populace of traders it's the liquidity provider so you need to be thinking like this small group is over here and I try to draw attention to themselves not trying to be online flashing this and flashing that it is quietly in here skin people alive in you've been there before just this is where I have neither stay in this business long enough to lead this group income over here work sit back in the middle here you get real close to being there you get bounced back to this group it will close to you getting over here and you start to develop a little bit more and you you play tug-of-war some of you in my group right now and this mentorship you're in this little area right here where you can see there's some signals and signs of a real entity of smart money in play but you're not fully convinced to leave this group yet you have too many convictions about your tools your indicators your your pet guru your buddy that has a website that's so cool to you it's just not enough you got to be able to release all that stuff and just leave it all behind and join the smart money because trust me we're not serving cookies but it's a way better lifestyle over here than it is over there In the first video I gave you elements to a trade setup. And I gave you two characteristics to it.
There's context and framework around the trade, and then obviously those refer back to institutional order flow. So you have to be able to bridge the two understanding expansion retracement, reversal, and consolidation, and applying them to respectively order blocks, fair value gaps, liquidity voids, liquidity pools, stops on run, I'm sorry, stop runs, and equilibrium. What does that mean for us for instance in its scope of price how can we use these ideas and make them applicable to price now I know some of you are chomping at the bit to learn long-term trading because you can't do day trading but bear with us as we go through these first couple months because I want you give you immediate feedback and the way you get that is by using intraday study because you get a lot of feedback and intraday action that is applicable to longer term charts but you can't I can't teach long-term day trading I'm sorry long-term trading on daily chart inside of 12 months adequately it can't be done because you're only looking at a scope of one year but with intraday it's like compressing years of data in just 30 years what's it not even 365 days really 200 some days that we're gonna be together so let's look at the daily range suddenly expansion retracement reversal and consolidation means something every day starts with consolidation Asian range after midnight there's a manipulation that takes place that's expansion it's coming in form of a Judas swing what is it doing it's making the higher low in London that's the London swing for a reversal that's a run on stops then there is another expansion move okay down into the New York session then there's going to be what another consolidation that's the New York consolidation going into the 8 to 830 news embargo lift where there's going to be another injection of liquidity or a reversal Then there'll be another expansion.
And then we go into London Close, which is another reversal condition. And then what happens? The market goes in consolidation for the rest of the day.
So we have a way of looking at these things and applying these concepts to time of the day and repeating characteristics. Let's get back to the intro. Bank price delivery algorithm. The daily range structure can be really broken down and simplified with, it starts with a price equilibrium, that's Asian range.
Then there's a manipulation, and that's always going to come by way of some news event, some news driver, either at the time of the manipulation or just before it. That's the Judas swing then we'll see a range expansion In other words after the higher low is formed the range will start expanding It'll go down into five o'clock in the morning, New York time or go up into that time time window depending upon the daily direction we're going to use the perspective as a by day that means that Asia the Asian range had a small consolidation and then right after midnight in New York time there's a drop down in price that's the manipulation making the false move for the low there's a range expansion then it goes into the reversal that's classic London open scenario where it shoots down runs the stops and then what happens it expands again there's another range expansion into what five o'clock in the morning New York time between five o'clock in the morning to eight o'clock in the morning in that time window the market will go back into consolidation then it'll have a retracement between eight o'clock and 830 in the morning New York time then it'll have either a reversal in New York session or another expansion move the range will expand and make the rest of the day going up into ten o'clock or eleven o'clock in the morning New New York time where it will have a reversal again that's long and close then the market will go into consolidation ending true day at 1901 for Excel TDs platform if you follow along with the videos we've been doing so far this month you know exactly what I'm talking about so we can see the interbank price delivery algorithm on a daily basis by studying these events and then seeing it over a period of time you'll know what is most likely likely to happen now let's look look at a little bit further if we're looking at price delivery and this is the model that comes by way of my understanding of how the interbank feeds price to everyone if we're focusing on delivery of price we have to understand that it all starts with a consolidation nothing can happen until consolidation consolidation is when the markets quiet why why is that important because that's when the orders are building up in the marketplace the market makers will allow orders to build up above and below the range the next stage is always expansion It's not consolidation to retracement. It can't retrace. It hasn't moved anywhere.
It can't go consolidation reversal because it has to come out of the consolidation. So when you see a consolidation or holding pattern, you've got to think the next leg is going to be in price. It's going to be an explosive move or an impulse like. Impulse price swing. Movement.
You need to see movement. By determining what that movement is and what direction it is relative to the conditions you're trading in, once we're in the expansion stage. Okay, then you have a choice.
It can retrace, come back to the order block it just left behind, and then recapitalize that and then make another leg up or down relative to the direction it's moved. Or, once it's moved in the expansion, it can reverse. Once it reverses, okay, there'll be another expansion, and then it goes back to a consolidation. The main thing is I want you to understand is it never goes consolidation retracement.
It never does consolidation reversal. It's always consolidation expansion. and then from expansion it goes either retracement or reversal. It does not do consolidation, expansion, consolidation.
That does not happen. It does a consolidation, expansion, you retrace this for another move into an order block and then recapitalize it and do the same direction it moved when it made an expansion or it goes from expansion to reversal. When you understand this algorithm, the way it moves and the way it operates, it's very generic, it's very systematic, it has only a few options to go to and they're time sensitive, sensitive okay they're intermarket related so so when one market moves moving in real fast if you understand the relationships like I'm going to teach you every couple months you'll know where the trade setting up because one's being held in yellow ones like letting it run which is the importance of knowing what the euro pounds doing it for trading fiber cable all these things are gonna blend together and you'll know exactly how I'm doing these things internally and I'm doing it on the fly I'm not measuring things and writing this down writing that down making notes of it I just know by looking at price that should be seen and you see it I'm thinking out loud in the videos when I'm doing a lot of sessions with you all aiming at your better understanding of price delivery and when you understand these things when you get to the level of month eight and month nine in the mentorship you're gonna be so strong at knowing what the next thing is gonna happen you're in your price that you're studying you'll know all these four things okay there's only certain processes that have to take place in a certain order. Like I said, it never goes consolidation and reversal.
It never does consolidation and retracement. It goes consolidation to an expansion move. There's an impulse leg up or down.
It's either going to be traced back down into where it just rally up from or it's going to rally back up into where it just dropped down from the consolidation starts at all they're going to run an expansion and then once it expands he's either going to come back and retrace and give another leg up or down or it's going to reverse and then from the reversal start applying time the general structure is consolidation in Asia expansion reverse in London make the higher load today then expand small consolidation in New York retrace between 8 o'clock and 830 in the morning your time another expansion move reverse back to consolidation you understand price delivery then you will not learn it just by what I've just explained to you just there but you'll use this as a model that repeats itself over and over and over again when you have higher timeframe directional premise understood and then you look at this price delivery algo it's so easy to know what the price is going to do every single day since the last week of August we've been together and every single day I've given you something that went right to the PIP or had an explosive direction move where you could have taken fifty sixty tips out and i'll trade that much everyday but i'm showing you by desensitizing you to fear and we didn't see there's no need for those things what we're teaching is consistency the ability to see these things happening all the time and also exercising willpower or not wanting to make money so you're suppressing the desire to make money you're developing your patience and you're learning a great deal you have no understanding how much you're learning just in these first two videos but I'm telling you you'll be able to look back on this months from now and say man that was a huge step I didn't appreciate until now there's a certain process that way the price is delivered and it can't be changed it won't be changed don't be afraid because you're learning it 700 people is not gonna turn the whole world around okay and they stop doing this it's not so again In closing, take the information I'm giving you, stuff it under your mattress, stick it in a love letter to your grandkids on how to do it, but don't market it. Don't do that. Not because I'm going to lose sales. it's just it's too good to share and you're going to see why I've kept it for so long and not wanted to do it and hopefully you guys will take this information and do something really great with it and that means not starting a website selling it ok that's nothing more I can say about this video except for there is a process that you're going to learn that is very generic and it will not break it will not stop working And when you look at the marketplace in your charts, I want you to think. It doesn't matter what time frame you're looking at.
I'm just using the daily range to give you how easy it is to see a repeating format. So simple. Every day you get an opportunity to study and see how it works. That same thing happens with a weekly range.
The weekly range is the same thing. Sundays open, consolidation. Then there's an expansion move in Monday. Then what? There's a reversal on Tuesday or Monday.
and then what there's another expansion move then it goes back in the consolidation midweek and it's either going to do what it's going to reverse or it's going to retrace it's never doing consolidation retracement it's never doing consolidation reversal it's consolidation expansion then from expansion you're making a choice is either going to retrace back or it's going to reverse trust me it seems like you still have a lot of choices to make but it's not and when you understand what you're looking at in terms of price you're you'll know if it's really leading to a reversal or if it's really gonna retrace and give you another opportunity to get in that another leg up or down that you saw in the first impulsive move. And believe me, you'll need to go back to this video, even though it's the second one, you'll come back to this video as we give more details along the lines of price delivery over the next couple months. Month four and five, you'll still refer back to this one and you'll see, there it is, it's been there all along.
So with that guys, I'm gonna wish you good luck and good trading.