Okay folks, welcome back. This is module 2 of December 2016's teachings for the ICT mentorship. We'll be talking about reinforcing liquidity concepts and price delivery.
Okay, first on the menu today is going to be external range liquidity. The current trading range will have buy side liquidity above the range high. The current trading range will have sell side liquidity. below the range or low. Runs on liquidity.
Seek to pair orders with pending order liquidity, which is in the form of a liquidity pool. External range liquidity runs can be low resistance or high resistance in nature. You as a trader, you want your trades to be in low resistance conditions.
In other words, you don't want to have any resistance in your path of profitability. Secondly, we have internal range liquidity. When the current trading range is likely to remain, liquidity voids will fill in, and this is associated with gap risk. And when current trading range is likely to remain, fair value gaps will also fill in, and this is attributed to gap risk.
Now, gap risk is nothing more than simply when the market quickly reprices to a level where there was very little or no trading. So in other words, when we see a liquidity run to close in a range where there's only like one candle, a real long candle, usually that's a gap fill. And whenever you're in a long and you have a big gap underneath you, that's gap risk.
So the market sometimes will many times reprice aggressively to close in those ranges, and that's what you see stocks do as a trader. We look for them as opportunities. Order blocks inside the trading range will be populated. with new buys and or sells. Market maker buy and sell models will form inside trading ranges.
Okay folks, let's take a look at external range liquidity and internal range liquidity and the difference between the two and how we can utilize both. Okay, we have an old high back here. And we have an old area of consolidation or equilibrium.
It's about halfway from the low up to this high. Price sweeps above this old high here. And that will be a form of external range liquidity because it's outside the range from this high.
And the low it's formed, so that was the range prior to the new breakout above this high seen here. So price at this point we know we have the equilibrium down here, but more importantly we have clean lows right below there. So we would look for a move that could potentially come down to that level. Okay, and price starts to drop, trading down. Now what it's doing is it's pulling back inside of all these up candles.
Okay, so once we clear out an old high, we would expect some measure of retracement. And when the retracement occurs, what we're looking for is where is the most logical area for it to pull back down into. Now if you look at this candle here, we have a previous up candle, rather large candle, and we have...
This candle has a wick, so at one point this candle opened, traded lower, so there was a pass through on the range between both these candles in this area. So the delivery of price was on the up move here and then down on this one, even though it's an up close. It was offered twice all through that range.
So at the top of this candle here, and it's open on the next one, that's where I would expect to see a measure of... short-term bounce okay and price trades here stalls a little bit and goes right through it comes back retests that same level in here okay right in here and ultimately comes down and clears out these equal lows now what i want you to look for is at this moment right here where is the next level of liquidity because we've already traded below this low here. Now in reference to the low here and the high up here, which we now have to redefine as the high, the stops below these lows in here, would that be represented in the form of external range liquidity or internal range liquidity?
In the context from this high, to this low it's internal range liquidity but from this low to this high it's external range liquidity because it's piercing it down here in other words we created the range from this low to this high so we expect this range to be given up and run the stops out here once that's done if we are going to go higher and bounce higher or trade higher or even make a new high here we don't ever know that we look for the areas of liquidity so we know there's a up candle here so we can reference that low the up candle not the black one here the up candle that opening i'm measuring that opening price and extending in time and what else do you see on this chart see this candle is wick and this candle is wick in between there price was only delivered on the downside so we have a fair value gap so if we start to trade higher we can expect to see the market want to reach up into that 106.50 level if it trades through this green candle or up candle it's going to want to reach up into the high of this candle 114.55 and the low at 115.95 so we can use 115.90 115.80 or we could use uh 114.55 or 114.60 any one of those levels would be nice but this would be what from this high down to this new low if we see i'm referencing the lows over here that was cleaned out not that i'm drawing anything i'm extending out keeping you mindful that's the range because we cleared out these lows with this new low and now this high is the high so the range that we're trading in now is this low and this high so if we see price trade up we would expect it to reach up into 106.25 if it gets through the up candle we would be expecting it to trade up into this area here closing that range And then ultimately, it could trade as high as this candle's low, 118.86. So we'll call it 118.85 to 118.90. OK, so inside this range from this low to this high, we would be aiming for internal range liquidity.
price trades all the way up right into the shaded area here right there now because we're looking at a monthly chart of the japanese yen we're going to drop down into a daily time frame and we're going to see how those levels i'm sorry we're going to drop into a weekly chart i'm going to show how these levels affected price action in the delivery So we have that fair value gap a little bit more refined. You can see the wick over here and the wick right here. So we can adjust that and refine it a little bit more.
So that way we can have the exact area at which price we'll look to fill in. It's only on this down candle price that's delivered on the sell side. No upside's been offered until now we're starting to see it.
Okay, so every time the market creates a trading. range going lower you want to mark off the previous high and the new low and when price trades back up you're trading inside that range so if you trade short at a bearish order block which is the last up candle that's going to be a return to internal range liquidity but you're going to be looking for external range liquidity to exit on which is to stop below the low price runs down hits that that's where you would look to exit predominantly my entries are internal range liquidity entries with exits at external range liquidity. In other words, I'm buying inside the range and selling it outside the range once it breaks it.
If I am in sync with the marketplace and I know what direction it wants to go and we're framing that based on the monthly chart here so you're going to see the benefits of doing what I'm doing here. If I'm looking for it to go higher relative to the monthly chart, anytime that the market comes down below a short-term low, I can be a buyer of that on short-term external range liquidity or buying up stops. But the expectation is the range will continue going higher, seeking monthly internal range liquidity in the form of this fair value gap.
And I'm probably confusing some of you that are listening very attentively, I'm sure. But the point is, once you understand on a higher time frame where the market wants to go, you'll be able to frame your trade setups as we drop down into a daily. Okay, so we can see the daily chart in here.
Market creates a small area of institutional order flow, comes down, hits that same order block, rallies through. Now watch what happens. In the grand scheme of things, in the monthly range, we are trading every time we create a new high, higher, higher, higher, here, here, here, each time, making a new high.
That is a run on external. range liquidity on this time frame being the daily but on the monthly chart it's still internal range liquidity because you're just inside of a larger monthly range when we understand where the monthly and the weekly are trying to trade to when we look at daily setups like this this creates the recipe if you will low resistance liquidity runs because you're trading in sync with the monthly where the monthly will most likely want to see price go up into. So every time a run above an old high is expected that's going to be framed as a low resistance liquidity run. Every time we see this, we can see how price reacts to it. Very little resistance on the part of price.
to get through these levels because it has an agenda it wants to get to a specific price level relative to a higher time frame because the funds trade on the monthly and weekly basis so if we can keep that in context and frame our trades with this idea we will always be able to classify a trade whether it's a high resistance or a low resistance liquidity run so if we drop down into a four hour chart we can see the highs being ran out every high has very little difficulty getting through it because it's framed on low resistance liquidity runs based on the higher time frame monthly you can't even see the range at which the monthly has that fair value gap in this high is broken through no problem this high here broken through no problem this high here broken through no problem now it's a small little consolidation but ultimately it runs aggressively and it's going to reach for these highs here. I get questions so many times about how I know where the market is going to be reaching for specific buy stops when we do our live session. This is how I do it.
I use the higher time frame institutional order flow to frame out where internal range liquidity is and where external range liquidity is. Where is the buy stops and what kind of stop or what kind of entry am I using and how is it? Align with the higher time frame the market trades down clears out some stops in here gaps down below on the election Closes in this range back down to a previous bullish order block rallies through and hits the old high over here All these highs are cleared out there and ultimately takes off and runs out another old high which will zoom out in a moment and see Okay, all through here and ultimately trades up into that monthly fair value gap.
Once we cleared this high here, and we cleared this high here we came back and created a gap we created a gap here came down and closed in the gap and then ultimately aggressively ran right up into that monthly fair value gap so what i want you to look at is every single time the market all through here every single time it gave a retracement this is a four hour chart so we're going to go down into a 15-minute chart and let's divide the days okay and i want you to look at how price responds when it gives you a new range okay you got a low here and a high price trades down into the previous order block whereas external range liquidity here so you're buying an internal internal range liquidity with the expectation you're going to see price move to the outside of the range created by this little move here so that's your range you're trading in for the setup The exit's here. But do you collapse your entire trade? No.
You're looking for the ranges to take out highs. All these highs in here. We get another rally and then retracement. Okay, so it's the last down candle right before the up move.
Price trades back down into it. They populate more buys on that order block. Where's the external range liquidity at? Above this high here and over here. It runs through it.
small little consolidation, we rally away, comes back down into the down candle, we populate more buy orders. What's it going to run for? That monthly fair value gap.
Look at the reaction once it gets up in there. Lots of profit taking. Lots of it right in here. Ultimately comes back and starts to trade a little bit higher.
I think it's indicative of probably seeing a little bit more rally when we open up on Sunday. But going back even further, You can see every single time the market creates a nice impulse price swing. We have a nice impulse price swing here. Comes back down. Bullish order block.
External range liquidity. Comes down and hits this order block again here. Rallies through. Comes back consolidation. Then eventually presses through, clearing out the external range liquidity here, or the buy stops above the highs.
The range is created from this low up to this high. The down candle. retrades back into it here, rallies away.
Now all this is what you're going to have to sit in if you're a position trader. But ultimately if you give it time, all it's going to do is it's going to return back to a previous order block here like it did here and recapitalize more buy orders because it's a long-term objective to get up to here. So they're going to have to buy some here, buy some more here, let some time go by and come back down to it again.
buy more of it again and one more time and then ultimately runs away because they have their position built averaging around 113.50 to 113.25 in that area. Many many examples of low resistance liquidity runs on the dollar yen. We have a low, price rallies up, comes back down, previous order block. run from this low to where external range liquidity buy stops runs above here same thing here we have a low price runs away from this consolidation why am I not using this low Michael because this is a consolidation in here price moves away from that comes back down hits the previous order block here rallies away what's it going to run for external range liquidity here running up okay you're looking to buy with internal range liquidity or at a bullish order block inside of a previous range and trying to take profit at an old high or above it while you're in sync with the higher time frame directional bias based on institutional order flow like we described earlier with the monthly ranges and looking for this fair value gap on the monthly chart because just like any other time frame the market's going to want to efficiently deliver price if there's no price trading up in this fair value gap that's been shown on the monthly chart that we have shaded up here in the, I guess it's like an orange-red color.
They're going to want to drive price up to that level. So anytime they can create a new buying opportunity, they're going to build more of a position on. We have a nice liquidity void in here.
Price comes down, fills that in, aggressively runs away. The range here from this low up to this high. comes back down, retrades back into the bullish order block Buy on internal range liquidity or bullish order block with the expectation of unloading at external range liquidity above the range high here. Price trades above it here.
Many, many examples, almost two or three a week, where you can see the setups that offer us an opportunity. And even on a pair, I don't even like to trade the dollar yen. We have a range here from low up to this high. Trades back down to previous bullish order block.
You can buy here. with the expectation of seeing a range expansion to exit on a external range liquidity or buy stop. Because we're looking for buys only, we're going to be looking for any type of impulse price swing up, then a retracement back down into a previous order block.
If we don't see any ranges that create new buying opportunities, we can target lows. So you can go through the marketplace and find all of the swing lows and wait for price to trade through them on the downside. And when they do that, they're doing what? Picking up orders to accumulate new longs. Like you see here, right here.
Right here and the other time it's a rally away comes back to the previous bullish order block Rallies away comes back to the previous order block rallies down into a previous order block More consolidation takes the stops and then runs above clearing these equal highs out. I don't need to draw this one It's already there equal lows takes the stops rallies away. So the type of trader you're going to be is going to be based on what you see easily in the charts.
You're going to see either turtle swoops, and you're going to be looking for buying of sell stops or selling of buy stops, or you're going to be looking for a return back to fair value, where you're looking to trade inside the range or buying internal range liquidity. And by framing the marketplace in either one of those two disciplines, you'll have no problem going in and finding setups. It's not...
that you have to find a setup every single day. But you will find a setup once a week. That's all you're looking for.
You're looking for one setup per week. So I'm going to zoom out to the hourly. I'm going to scroll back from the time at which price did trade up into the objective based on the monthly chart. We had a nice buying opportunity here on Monday and there was a Thursday buy as well.
We have a Monday buy a nice looks like a crossover into Tuesday nice buying opportunity here definitely a Wednesday buy in the previous order block here nice buy on Tuesday here on this week nice buy on Tuesday here and on Thursday this is the election I can talk about that one. We were on the sidelines for that period so we would not have been looking for anything on that one. Okay, so we have a nice little buy on Monday turn back to previous bull's order block and then we have a Wednesday buy scenario in here as well running a stops here on Wednesday. So think about this If you know the higher time frame monthly chart is calling for a run higher on price, and we talked about this months ago when dollar being bullish and dollar yen should be going higher.
And if we know that there's a retracement taking place or a correction, if you will, and the market's trading lower, our mind shifts to, okay, where are the sell stops that they're reaching for? Because underlying, the market pinnings are bullish for dollar yen. So if the market's predisposed to go higher, but it's dropping, we don't say, OK, well, I'm not looking at that pair or I'm not looking at that market.
What you should be doing is, OK, I'm going to be looking for external range liquidity on the time frame I'm using right now. It's the hourly chart you'll be looking for any time the market's trading lower. If it's trading lower, where's the lows it's trying to breach?
Where's it going below here and here? So if we know that, They're going to be expecting what a reaction there quick reaction away not just hang down there and just Meander around we want to see it go down there and then show willing to go back away from it when it does that It's tipping your hand then you just wait for a bullish order block. It won't it won't always happen right away Like this one gave one that's pretty uh, pretty nice. It came created a down candle. It was created With this candle breach and this candle's high.
So now this down candle becomes a bullish order block So anytime we trade back down into the range, which is here, we can be a buyer. But this new down candle here gives us another opportunity to expect another return back to this candle, which it never does here, but it creates another down candle here. Eventually hits it here, so there's a buy.
So you have to wait a little bit. It's only hours. Each one of these candles is an hour. So the very next day, you get another buy here. And here, we see price go below this low.
Runs the stops out. It runs the stops. Okay, does it stay down there?
No, it quickly runs away. Okay, now we wait. What do we wait for?
A price to come back down to the last down candle. Here, we look for the return back to that range. Does it want to run after it takes this low? Certainly, it wants to run. It runs higher, and every time it takes out a new high, it's showing willingness to go higher.
It's giving us a confirmation that there's underlying strength in this pair. Even if there's going to be like steep declines like this. This is all on the heels going into The election again. I can't stress this enough. That's the reason why I was on the sidelines the entire first two weeks of November I just didn't want to be trading because of the potential fallout or the uncertainty and that's okay with me I have no problem you being on the sidelines for a short period of time.
It allows me clarity we had a really nice spot here on wednesday of that week i'm just pulling out the salient price swings that took place each week we had a nice buy on wednesday here and we had a nice buy on friday for a position entry nice retracement here real aggressive retracement now watch we don't know what's over here yet but when price dove down like this down into the 120s what's it looking for to the left what's over there It's returning back to this level over here. Right there. It returns to that bullish order block. Does it show when someone will rally up?
So every week there's been one setup. In here we saw price rally away. It comes back down to the previous order block and rallies through. It's not that you're trying to capture it.
every piece of the weekly range. That's not what I mean. That's not being illustrated here.
What I'm showing you is how you can find one setup per week. It doesn't require you to have the full entire weekly range. I will go into discussions about how you get the weekly range, but for this teaching here, I want you to think about how you can frame the larger time frame, where the market should be going, and then how it helps you define what a low resistance liquidity run would be versus a high resistance liquidity run.
All of this area down here is where the market traded down into on a monthly chart, clearing out that equal low. I'm going to leave that little area there on the chart. It's all down in here once you cleared all this out. All these lows were cleared out in here, and price rallied up aggressively. When we take… these ideas in the higher time frame and we transpose them onto the lower time frames every time we expect to see the market rally what we're looking for is a willingness to have very little resistance because the underlying market pinnings are bullish on the higher time frame so if the monthly chart's bullish there's going to be no problem at all trying to smash through short-term highs because the market's going to be really driven by higher end money so the monthly chart being the key player your trades on framing low resistance liquidity runs where's the marketplace seeking to go on the monthly chart if you can't ascertain where the markets going on a monthly you just simply drop down into a weekly chart and by dropping down into a weekly you can still see these areas of which the market should be inclined to trade up into the close-in because again it only offered price on the downside we saw price breaking short-term highs here then this high was broken here so we have a potential market maker buy profile where it's going to want to go back up into areas of institutional overflow but we're hearing this consolidation but there's a fair value gap before you get to that point right in here and that's where you saw price trade right up into that that 115.25 to 115.75 reasonable upside objective all through here all the way through here for dollar-based pairs that have the dollar on the front of their name like dollar yen or dollar swissi okay those pairs should have been seeing strength because of the underlying strength in the dollar so in summary to make it a little bit more easier to understand because i was a very broad brush with a lot of the ideas but i want you to study this because it helps you get to why i look at certain trades as low resistance liquidity runs And that way if you understand what a low resistance liquidity run is, you will know what your trades are not in terms of a high resistance liquidity run.
You don't want that to be a trade you're trying to take. You want to be trading with the least resistance. So every time we look to be a buyer on a retracement back to a previous order block, we want to see that high being taken out.
But if we're trading against a higher time frame and there's no real reason to see the funds move. the marketplace to those levels, it's not going to be a low resistance liquidity run. It's going to be a high resistance liquidity run. And they're the types of trades that you sit in too long, or they don't pan out right away, or they turn right around on you and bite you in the rear end and stop you out. So in simple terms, let's give you a little cheat sheet list here.
Okay. You want to be looking at a monthly chart or weekly chart and determine where is the market more likely to go to? And by having that idea, if we're bullish on the monthly or weekly, then we'll be looking for buy signals on the lower time frame, like the daily, the four hour, and one hour.
And we will be looking for bullish order box or turtle soup longs, with the expectation that any short term highs on those time frames, that's where the objective is. Now, let's assume for a moment. that you're looking at a hourly chart and your underlying asset direction bias is bullish on the monthly and weekly or one or the other but either one of them has to give you that directional bias if the directional bias is bullish and you see an hourly chart give you a return back to what would be otherwise seen as a bullish order block but the high in between the range low and the high that it retraced from? If it's only 20 pips, is that a trade that would be viewed as something that you would take?
In my opinion, no, because the range is only 20 pips. When it returns back to the previous order block, for instance, if this is, say, an hourly chart or maybe a 15 minute time frame, and this is the range you're looking at here, this retracement, if the range is only from the order block, where you would be buying up to the high in between, if that's only 20 pips, are you going to be taking that type of trade? My opinion would be, no, I wouldn't personally take that trade. But if I saw a swing like, say, this low here and up to this high here, and there was an order block that allowed me to get into it down in this point here, if I could take that trade and say this was 40 pips, that would be a trade I want to take. Because if that's 40 pips from where the high is and where the order block entry would be, that means I could potentially have 40 pips in profit.
Because I'm going to try to get out with a run above that high and exiting where the buy stops would be in the form of a low resistance liquidity run. Because I'm trading inside of the monthly and weekly range that would be viewed as internal range liquidity, which has very little resistance. On the trade on a lower time frame, many folks would see that as resistance.
So it's going to hold back price. But on the monthly and the weekly chart, it's indicating they want to go higher. So it's going to have very little difficulty getting through it.
But the precursor is you want to look at price swings that offer about 40 pips. If you can see anything at 40 pips or higher and looking for a retracement to go along on that, that gives you a reasonable first profit objective. Now, obviously.
If you go out to a larger time frame, okay, and you use bigger price swings, that gives you a lot more. depth in terms of what you can pull out in terms of pips. So if you're looking for, say you're a trader, you want to have nothing less than 50 pips. Okay, well, that's great.
Use a 30-minute or 60-minute chart and dial in looking at your marketplace for buy signals that set up those price swings. So in other words, if you have impulse price swing like this and say this was a hourly chart, okay, this... and this range would be from this high down to that low, if that was 50 pips or more, that would be a wonderful opportunity for you to get your classic 50 pips or more setup.
So if you have a weekly objective, let's just say you've done the numbers, you've worked it out where you want to make 10% a month, and you figured out that to get 10% a month, you need to make 50 pips on whatever equity base you have. And you figure out how many pips you have to have, what your stop loss has to be, blah, blah, blah. It ends up... You just want to hit that number and 50 pips will get you there. So what you do is you want to look for ranges to have 50 pips or more, preferably about 75 to 80 pips is perfect, because even if it doesn't break the range and go up above this old high, it still gives you the opportunity to get that 50 pips.
So don't think just because I'm saying that we have to be a buyer down here and looking for an exit above the old high, that you can't get all of your objective and your goal inside the range, because, again, that's. That's the beauty of trading price action because you don't need the range to break. If you frame the right swing, you don't need the range that you're trading in to break to be wildly profitable.
You don't need it to move well beyond the range high either if you're looking for the break. In other words, if you just want to see it like you didn't need it to do all this. If you were buying down here in the range from this high down to the low where you're trying to buy, let's say 100 pips, you could handsomely take 75 pips out of that. Now you get it.
the full range. But you can't do that if you try to do every entry on every 30-pit price swing or 25-pit price swing because you're trying to get in right now and you're looking for anything to get you in. If you're much more selective in your setups, you're going to trade a lot less, but your setups are going to be a lot more choice.
They're going to be more potent. They're going to have a lot more likelihood of panning out for you in your favor. But you can't do that Okay, if you trade every single setup in every time frame, you got to pick a time frame that fits what your model is.
If you're trying to get, you know, 250 pips, you know, over a course of two weeks or so. Okay, you're not going to get that trading on a five minute chart and looking for those types of price swings. You need to be living on a four hour chart or a daily chart and trading those price swings and looking for those those levels.
And that'll give you. those types of objectives and returns. But to give us multiple examples on a day-by-day basis, I use a 15-minute time frame intraday to show you how many times you can see something setting up.
And while it won't always deliver five to one or three to one even sometimes, it will deliver a lot of price action study. And then we move out to a higher time frame where we're only working off of an hourly chart. It'll give us a great more opportunity to talk about how the moves that take place that move a lot more. in 30, 40, 50 pips. We can get into the range of 100, 150 pips.
Okay, those types of setups, they're more fun. But you have to sit on your hands and wait a little bit more. It's not much more than sit and wait, but that framing the ideas with the higher time frame monthly and weekly and determining where they want to go, keeping that perspective in mind, every time we look at an old high and we're bullish on these lower time frames, what that's going to do is it's going to build a model where we can see clearly.
It's a low resistance liquidity run when we buy and we don't have any fear of Looking at that as a resistance level or this is a resistance level We will see the market want to draw up to those levels because there's buy stops above that That's why the markets wanting to go there You see how quickly it tries to get to that level here and then once this high is taking place What does it do? It doesn't waste any time it quickly gets up there above this high and it ultimately runs Aggressively into this high here if we were bearish on the monthly chart When we click chart, we would be looking for the opposite. We would be looking for retracements higher and making low resistance liquidity runs to break below a swing low.
And we would look for price swings of 50, I'm sorry, 40 pips or more as a high opportunity, high odds opportunity for a day trade or a short term trade. If we use an hourly chart, we could have a little bit more. potential range in terms of pips, potentially 75 to 100 pips or so.
And that will give you the ideal setups that you'll be looking for if that's your objective. So a lot of folks that are in this mentorship and those that are even outside of mentorship, my email box gets littered with, can you tell me how to make 100 pips a week? Okay, that's easy. What you need to do is you need to trade a four-hour or a one-hour chart, nothing less.
That's it. That's all you got to do. And you wait. and you look for scenarios across all the majors and you'll find a hundred pips price swing every single week but that has to be your model it can't be because I just said it and you go out there and start trying to force it to happen if you don't have the psyche to do that it's not going to work but having these higher time frame charts and give you that directional bias where it's going to go it helps you frame whether the trade you're going to be taking is in fact really a low resistance liquidity run or is it really a high resistance liquidity run. If you develop your skill sets on the higher timeframes, it's the same thing we do in the lower timeframe, but focusing primarily on what the directional bias is going to be on these higher timeframe monthly and weekly.
It will help you resist the urge to do those many times where you go in there and you do a trade because you get impulsive or you just did. I don't even know why you did it because I've done it too. You're looking at the I'll buy it now or I'll sell it now. And you didn't take any consideration into what the higher time frame charts are telling you.
And all of a sudden, it just rockets the other way. And then you look back, you know, weekly, and it's, oh, there it was. It was hindsight perfect. 2020, I should have did this.
Opposite. If you stay in directional bias that the monthly and weekly tell you that you should be doing, every trade that you frame has a higher odds of being a low resistance liquidity run. That's all we do with a market maker perspective. We go in looking for that because they're driving price to where the orders are. And it's not random where these orders are.
They're logical locations. When it's bullish, the market's going to go above short-term highs. How far over?
When's the last high? We never knew that. We just know each time this is a range from this high down to this low.
It trades through it. Okay, so now what's the new range? This low, this high. Well, it broke that. What's the new range?
Okay, well, this low. to this high up here and then this fair value gap if it trades on through we know we're looking for return back to this up candle here and then maybe these highs here and ultimately above 125.77 we don't ever try to call a high in the marketplace that's not what we're trying to do this was a logical area on the monthly chart to trade to and it did so after it did that we now have to evaluate does it have more willingness to keep going higher or would it be real more prudent for it really to go into a consolidation here. And I think logically it should, but the market's going to do what it's going to do.
But in this module, the aim was to get your mindset on a monthly or weekly capacity. And that way, when you go into the lower timeframes, every trade scenario you trade with in that directional bias on the monthly and or weekly will help you find the low resistance liquidity runs that you're looking for. They are the high probability setups.
They're the ones that have the immediate payouts. They're the ones that give you the immediate responsiveness to your entries. And it has very little drawdown.
And that's your goal as a trader. You want to be trading in that environment. So with that, guys, I wish you good luck and good trading.