Transcript for:
Money Making Concepts Series - Lecture 1: Introduction and PD Rays

when I started sharing my IDs at the beginning of 2023 I called the IDS a revolution and so far it has seemed like it where even other mentors are copying the exact Concepts that we are going to go over which tells me that we're doing good and it's worth paying attention to now before we get started I want to introduce myself I am Ario janson's I am Dutch as you probably already could tell by the accent I've been trading since I was 17 18 years old I've been funded by investors since the age of 21 now you might think why is a Trader that trades for investors so busy with things like YouTube and that is because I have another goal and my goal is to build the best trading educational company there is and the only way to do that is by providing the most value that I possibly can even for free so not talking about paid students here are results from free YouTube students and that leads me to say well welcome to the money making Concepts Series this is a series for everyone from beginner to Advanced and in this first video I want to discuss PD rays and how they lead to a Direction but before we go over that I want to discuss the first things first where the first thing that I want to discuss is expectations if you follow the steps that are outlined in this series and you actually give it time then you will see results that is my guarantee from me to you but understand that all good things come at one single cost and that is time so please give it time very important and the second thing that I want to go over is credits now with credits I want to discuss the origin of the money-making concept and the moneymaking team money making sounds very cheesy in my opinion especially nowadays where everyone is trying to sell you something but money making is the exact philosophy that we work with back in the day when I was learning about trading I was quite frustrated that a lot of people are so focused on trying to figure out an algorithm so I personally felt like that there was no real guide how you can actually profit of the market there was more so a guide how you can figure out a certain algorithm and I could be wrong but I don't think the most efficient method to making money from Trading is actually through understanding an algorithm and I believe that most Traders came into trading to either profit so to make money from the market or for some type of Freedom which usually goes hand inand now I am not trying to sell you a dream that you will be profitable and you will make millions tomorrow no because trading is difficult and it needs time but the money-making team and the money-making concept is focused on providing you with a skill that you can rely on if needed for the rest of your life then I want to give credit to the man himself ICT but I also need you to understand that nothing here is a copy meaning I won't discuss Concepts that you can simply go ahead and find in another video of ICT the terminology and some of the words that I will use yes that is straight from ICT other than that it is all straight from my mind I will not be teaching you ICT Concepts so if you are interested in ICT go ahead to ICT everything is for free on YouTube as well but I will be teaching you money making Concepts now the last thing in first things first so we can really get started is extras there's a study notion and there's PDF files to the PowerPoint slides that we are using in the videos in the description then moving on of the first Topic in this series and that is going to be PD Ray now why start off with PD rays and what even is a PD Ray Price is always moving towards a PD Ray so if we understand PD Rays then we have the first understanding of trading which is the direction is price going higher or is price going lower a PD array stands for a premium and a discount array a PD array can act as two things we can trade towards it so price is attracted towards the PD but we can also trade from it so in the market that looks like the following let's say we have this line which is a PD rray and that happens to be a premium array and a premium array is a bearish PDR meaning we can continue lower from it so that premium rray can be used potentially to trade towards it as a magnet and to trade from it lower right there now the same thing can be said about a discount rate so if we are looking at higher prices and we have bullish price action and that discount rate can potentially be traded towards right there can act as a magnet and then we can also continue higher off it so trade from it then once we understand these Basics then we can understand if price is always moving towards a PD it is our job to find out which PD we are moving towards next and that leads to the following questions well what are then the PD rays that we are dealing with well the first one is a fair value Gap a fair value Gap can act again as that magnet so we can trade towards it and also from it then the second one the second PD rate that we have is a fair value area now you may see the fair value area has a line crossed through it because the fair value area is not necessarily something we want to trade towards we want to mainly trade from a fair value area and then the third PD rate that we have is Swing points right there which again we can trade towards it and trade from it then the fair value Gap and the swing Point that's mainly going to be our focus in finding the direction in price action the fair value area is what we're going to discuss in the next video all right so let's understand the first PD Ray which is a fair value Gap what does a fair value Gap in other words an fvg look like in the market the first thing to understand is that there's different kind of fgs we will have a separate video in this series diving into all the in and- outs of fgs all you need to understand is what the PD Rays currently look like and in the second one Superior the other PD rays are not relevant if you don't understand an FG also something that will become more clear once we dive into the topic of a fair value area but a fair value area can't exist if we don't have an FG and swing points are useless if we don't have an fvg so those fair value gaps are at the top of the hierarchy that's why you saw in the previous slide they were a number one here we are on GBP Us doll on The Daily time frame every PD Ray in this video that is going to be marked out is going to be on the daily time frame and when we start out by marking all the daily fair value gaps sitting right there then we can see in recent price action we have traded back into a few of these fair value gaps what are these fair value gaps really quick reminder the fair value Gap is a three candle pattern meaning we have the first candle can do whatever it wants the second candle is a close with the body above the first candle High the third candle does not trade back into the first candle high and that leaves behind this body that leaves behind a fair value Gap once the third candle closes there's either going to be a fair value Gap that has been created or no fair value Gap if it trades back into the first candle High fair value gaps right here that have already been traded into are fair value gaps that we can delete because fair value gaps that have already been traded into are not relevant anymore they have already been mitigated the reason why that is is also something we are going to discuss in the fair value Gap video but for now for the live study we simply want to Mark out all the fair value gaps that have not been traded back into so for example if we take a look at the left right here we still have this daily for Value Gap all the way towards the left as well and if you are planning to follow along with the MMC it is very important to understand the rules of that fair value Gap so for example a fair value Gap can only be traded into once because if you are going to have different PD Rays on your chart you are not going to get to the same exact thought process the same results as for example me you're going to lose a lot of accuracy in priz action then I want to do the ex exact same thing right here for EUR US dollar where I mainly want to focus on this bullish fair value Gap so that discount array and this bearish fair value Gap that premium array right there as long as you understand what that fair value Gap looks like and you have also marked out fair value gaps on your own chart on The Daily time frame that's perfect then we can move on and the second PD aray is the fair value area in other words the FV now the fair value area is something where we we need to go over Market structure first before we can actually go over the fair value area so in the next video we will discuss things like Market structure and Order flow and we will then be able to discuss a fair value area as well because our second bullet point right here is not needed in Direction it is more interesting to trade from a fair value area than to trade towards it so for our main Targets in price action we focus on Fair Value gaps and the third PDR swing points also known as liquidity so swing points is The Gather name of Swing highs and swing lows and those swing highs and swing lows that is where liquidity is in the market now why is this liquidity even important liquidity is important because there are bigger entities in the market than us and that big entity is trying to place a very big order and for that big order that big buy order they need a lot of willing sellers on the other side now where are those willing sellers that is where the stop- loss comes in because a stop- loss not necessarily willing but it is an order and when you have a buy order and the stop- loss of that buy order that is a sell meaning if we trade below a swing low where a stop- loss is that is someone else's buy those big entities need that liquidity to get involved they move the market that moving of the market is then also seen through fair value gaps they cannot hide it and then that is also where liquidity comes in because if that big entity is then trying to take profit they also need to Target again liquidity because their takeprofit is a sell order and they need a willing buyer on the other side now those swing points can also be seen by the following previous candle low and previous candle High previous candle lows and previous candle Highs are swing points on the time frames below so taking a look at GPU dollar again the daily time frame at the swing highs and the swing lows this right here is a swing high this right there a swing low it's a three candle pattern where you have one candle in the middle if it's a swing high is sticking out at the top the candle directly towards the left of it and the candle directly to the right of it is lower than the candle in the middle that creates this swing high sitting right there the same when we inverse it this candle is sticking out in the middle at the bottom and the candle directly to the left and the right of it is higher so this lowest point then becomes a swing low now currently we are almost looking at a new swing High which is this one but a swing High and a swing low is only confirmed when the third candle right there is confirmed similar to a fair value Gap where this is not a fair value Gap right there because this candle is currently still in the making only when this candle is confirmed the third candle that's when we can say that this is a swing High So currently we're not going to Market out but if we Mark out previous swing highs and swing lows then we can see those swing highs and swing lows are being used as a Target very similar to the fair value GS that we have here all the way towards the left we also have this swing high sitting right there now for the daily time frame and for this video mainly focus on those swing highs swing lows and those fair value gaps but once we move on and later on in this series those previous candle highs previous candle low lows will also be relevant now what is a previous candle high and what is a previous candle low it is already in the name so the previous candle to the candle that is currently forming so this is the candle that is currently forming the previous candle is this one so the previous candle high is the highest point of that candle the previous candle low is the lowest point of that candle so for example a previous candle low that we traded into right there is also a fair value Gap sitting right here where at the same time we come below the previous candle low right there and then continue higher so this previous candle low if we were for example to go into the 4-Hour time frame we can actually see that is a swing low sitting right there on the time frame below so the previous candle low previous candle highs essentially a fractal understanding of the market which will come in very handy when we are going to talk about candle signs in later videos now for eurous dollar I want to do the exact same thing Mark out those swing lows and those swing highs especially the ones that we have not traded back into so for example here we have this swing high that we can still look to Target right there and we also have this swing low the closest swing low and the closest swing high you can also do this for the Indus so if you are an Indus Trader and you trade for example em S&P 500 that is perfectly fine if you are from India and you trade something like Bank Nifty you can also do the exact same thing because it works the exact same the same for crypto Traders also works the exact same it works on every single market now the main point right here is understanding swing points and what they look like again quite basic but we need to understand these Basics before we can move on to the advanced things then this leads to the following because when we have those PD rates and specifically again fair value gaps and swing points they lead to the understanding of Direction at least the first understanding so what I would love for you to do is start doing a case study and that is for your own sake and the first case study for this video is going to be the following Mark out every single fair value Gap and swing point on your chart on just one single time frame and see how the chart tells you which PD we trade into again can be any chart can be any Market I would advise the daily time frame to follow along with the timeline of the series and if you start doing this you will already see how price is telling you which PD it wants to trade into next and then this lays the foundation of everything that we are going to do in this series feel free to use the notion where you can make case studies and feel free to also show me your case studies on social media all right perfect thank you