Transcript for:
Understanding Market Analysis and Price Action

okay so let's go back into it we have the high of the week form on Wednesday well that's right out of the free tutorials as you would expect all right so let's go back into the chart here we're looking at the Wednesday high so this is high of the week the market trades down it reaches into that Weekly liquidity pool it does so here rallies away trades one more time creates a double bottom comes all the way back up to at least the equilibrium price point of the weekly high from this high to the new low trades back up to midpoint of that why does it do that ITA does that to pick up more orders and allow fair value entries on the banks the market trades down lower comes back up rebalances and then drifts drifts drifts and it makes an aggressive run down to make the low of the week here's our 10 20 and 30 pip grade swings below that Weekly liquidity pool so everything here if we zoom in 10 pip right here 20 pip right here 30 pip here just fell short of it it's like 29 Pips or whatever it was didn't quite get down to 30 but it gives you a nice rule-based idea every time we look for run and liquidity so when we have these theories okay when we're looking for Price action to do specific things relative to that daily time frame we we incorporate the daily time of day and the kill zones to formulate ideas when liquidity will we rated okay when the stop runs occur all of the things that cause the market structure theories like we have these double bottoms which is what we call on the Twitter feed Candy Land uh they're they don't like to leave price action like that so we're going to anticipate this whole run here if if we know that that same fractal that's being shown here works on a 15-minute time frame and it works on a one minute chart a 5 minute chart why won't it work on a daily absolutely will work on a daily in fact it's going to work more often on The Daily than it will on any other time frame why because the interbank is based on what that chart's showing it's going to give you the truest form of knowing where the Market's going to go the most sensitive price points on the highs and the lows where there's fair value where there's inefficiencies and where there's buy side and sell-side liquidity everything you're looking for is derived from that daily chart because you can still pick up the insights that would be seen on a weekly chart by studying a daily chart if you know what you're looking at now don't read too much into that and say send me emails or ask me on Twitter what did you mean by that you learn all that in the mentorship and Beyond Charter level it's important for you to stick to one narrative that means seeking liquidity outside of the candles now what I just told you is what I hint at all the time on Twitter but the uninitiated they have no idea what I'm saying I'm looking at what's outside of the candles that's the liquidity in this case here it's the sside liquidity pool there's nothing down here that's being seen in retail's mindset in terms of what they see on their chart they see that as support I don't I see that as liquidity and it's outside of the the chart think about it you look at as a retail Trader support resistance trend lines moving averages indicators they're all very interesting they're entertaining but they rarely work I look at things that aren't necessarily seen in price I show you where fair value gaps are I show you where inefficiencies Exist by side inefficiency sell-side inefficiency buy side imbalance sell-side imbalance I show you and tell you what the narrative is that creates those things and why the market will reach back to it and what it should do once it gets there all of that is outside of the understanding of a chart from a retail perspective that's why you as my students are learning how to do what 99% of everyone else around the world cannot do predict price we do it every single week based on what we do on that daily chart that's the secret weapon for bias if you do not use that daily chart you're going to struggle with your bias it's just as simple as that so if we go back and we look at that idea of when the market is seeking that higher time frame draw in liquidity which is again is that Weekly liquidity pool from from Wednesday down to here we're above that opening price so all up in here we're close to if not at the very high of the week why would I say that well we have equal highs in here we have a high and a low so there's a range in there so if we just look for simple optimal trade entries go back to Baby pip days low to high we're basically at The Sweet Spot creating a high of the week so everything I was giving you on baby Pips still works but you need to know how to use those things I taught on baby Pips once you understand mentorship level you can go in there and pull out Traders Trinity things I don't talk about anymore and you can literally look like a wizard to the retail world because you'll be able to do things with price action that no one else is able to do because they're looking at patterns for pattern sake they're looking at Elliot wave and trying to decipher what's the count What wave are we on what ratio should I have if I'm a ratio Trader what harmonic pattern is harmonic right now okay it's look anybody that's interested in harmony okay in in in what they're doing use e-harmony okay and then they're not a sponsor that's the only Harmony you need to have is as a individual okay because if you try to incorporate Harmony in price action you know you're going to find that uh you know you are going to struggle you're going to find that you're trying to force things you're tring to look for things okay instead of saying what is price most likely trying to do here it's going after the money whose money large funds it's just that simple it's just that simple that's why coot Works coot data commit ministrators reports what is that it's showing you the relationship between the large pools of liquidity being held by the large funds who gave those positions to them the counterparties the commercials the large institutions the banks The Producers or manufacturers of that market or commodity since the Curr currencies are commodity we understand that the relationship for Price delivery is not based on the retail Universe retail is too small it's too insignificant of an animal that doesn't leave a mark it just can't it doesn't support it but large funds okay large funds are the market they are the buyers and sellers the liquidity providers are the commercials so we look for the relationships between those two parties in price action and where their stop loss would be that's where the Market's going to go where a return to a level that would not necessarily be seen as bullish for a large fund Trader uh commercials would see that um retracement lower to fill in some fair value and then pick up more orders and then go higher and and move against the intermediate term swing low and high that would be against the large funds position and you'll you'll understand what that means later on in mentorship because I'll teach you specifics on how to find it in price action real real accumulation real distribution and you can measure that with tools that I'll show you using price action but when we look at the weekly analysis videos it's important that you going with [Applause] [Music] [Music] spe