Alright folks, welcome back. This is our lecture for January 7th, 2025. The topic tonight is going to deal with the midnight opening range. And I want you to know, for all of you dear students of mine that are 4X fevered, it's been a long time since I've messed around with 4X, but usually when people think of 4X, I'm probably the first person that comes to mind. And I've probably introduced more... for that industry than anybody else since its inception.
So, and that sounds a little narcissistic and arrogant, but that's just the truth. So I'm going to share with you one of my secret weapons tonight. Okay.
It works obviously in Forex and it works in futures. It works in every asset class with the exception of crypto. I am never, ever, ever going to co-sign for crypto. Also for the folks that keep asking about synthetic markets or synthetic indices.
I don't have any experience with them. And just like the Indian markets, the nifty, I have no experience with that either. So you'll have to go somewhere else for an opinion on whether my stuff works in those things because I've never actively pursued whether or not it does. Okay.
So with that said, I want you to think about all the things if you've been with me for a very, very long time as a student or just a curious constant reader that. period of time when I was focusing on predominantly the Forex markets, I was able to showcase a lot of things where I would run accounts up at breakneck speeds and trade in the London session and do lots of wonderful things in the London session that just seemed to defy all logic. It had to be fake.
It had to be a white label broker. It had to be fraud. It had to be, you know, some kind of trickery, delayed data, something to that effect. And I'm going to showcase tonight something that I've never shown anyone.
Because it's never been my interest to share some of my best kept secrets. But I'm going to do that tonight just to prove to you that it's not gain, it's not white golf, it's not any of those types of things. It's my stuff. So when I coded this algorithm, I wanted to have advantages in being able to implement daily highs, daily lows, know where the lay of the land is going to be, and then as a boundary marker for the daily range high and low, then I could operate in the meet.
in between very easily, be able to have an opportunity to just delve into the plethora of opportunities and setups that would be between those boundary points. Now, it's not imperative that you learn how to pick the daily high and the daily low, okay? I have given points of reference that will help the diligent student get very close to it. Now, when you think about this, it seems It's impossible.
How could someone know the daily high and the daily low of a market before it even trades? But I told you back when I was on baby pips, I was able to do this. And I was showcasing examples where I was doing trades, executing on them, and being very, very close to the high and very, very close to the low.
How was I doing it? I wasn't willing to teach it. And in 2016, I did a paid mentorship.
And when we got to 2017 portion of it, which is all one. paid membership. And that's the same content that I've uploaded on my YouTube channel.
So for people that are constantly leaving comments saying, do you still do paid memberships or mentorships? No, I don't. I don't need your money.
I'm not living off of the handouts from other people. I don't need to do that. I don't need to do it. Okay.
And to prove it, I put all my content up on YouTube for free. And I promise you, okay, I could make millions of dollars every single month if I wanted to sell a mentorship. Okay. I would put everybody else out of business. And that's how it would be.
I'm not interested. Okay. I love doing it like this is how I started. And I love being a teacher from the heart.
So that way there's no, there's no upsell. There's nothing that you're going to have to pay me for. And you don't even have to say thank you.
I really don't care if you do. It's just, it's not important. But for the folks that learn from me, I do appreciate when you give me feedback. And there's lots of individuals that are doing that.
And I just want you to know that it's appreciated as a teacher, as a fellow human being. The compassion that other people have shown me for the effort that I've placed out there with no expectation at all in terms of a monetary reward in compensation between you and I as a student. You're here because you want to be and nothing keeps you here except for your interest.
So I want to talk about, obviously, the example of using the midnight opening range and the benefits of having the information. with the NASDAQ first. And then before I close this session out, I will show it to you in a Forex pair.
And everyone knows that if you've watched me as a Forex teacher and teaching my concepts in that industry or asset class, everyone that knows me knows that the cable or pound dollar was my favorite currency pair. And true to form, just for nostalgic reasons, we'll go back into that same currency pair. And I'll show you how to implement the same thing here tonight. So that way you can go back and back test.
You can study and get your hearts filled with all kinds of joy and excitement, just like on Christmas Eve where you can't fall asleep because you know Santa's coming. So one minute chart here on the NASDAQ. Okay.
I'm not going to counsel you to look at the video I posted prior to this one in this playlist. So the 2025 lecture series on my YouTube channel, The Inner Circle Trader. I gave you an example last night where my son and I were working with this very concept here, okay?
And how I could predict the low of the midnight opening range and what you can use with this information going forward. How is it helpful to you as a trader? What information does it help you collect?
What can you utilize with this information for setups? Stop. management, all those types of things are crucial and they're helpful, really. So without going through all of this movement here where we used the CIVI last night and used all this frame of reference and then shorted this fair value gap, which was also optimal trade entry, we shorted, my son and I is what we're talking about here.
That was done in his account. That was not my account. He sat with me in a webinar, seminar type program.
What I could say about his chart when he's showing it to me live, it's kind of like where we sit and we talk. Like he's at his home, I'm in my home, and he's sharing his chart or I'll share my chart. So when you're looking at that video last night, that's not my live account. That's me talking about what it is that he should do, and he's given access to the cursor. So that way when the button's being pushed, he's pushing the button.
But it's me doing all the annotations. Okay, so that way you understand what was going on there last night. It was a live account.
It's his account. He's pushing the button, but I'm annotating and explaining to him. So you're probably saying, well, why can't you talk during the video?
Well, not everything that I do with my children, you're not obligated to that. Okay, so in other words, you're not entitled to have everything I'm teaching them. But because I wanted to showcase what I'm segwaying into tonight.
I wanted to show you a real-world example of Michael, the trader, having the understanding about what this algorithm does because having this information is one thing, having the idea and the source code, if you will, of why it should be beneficial, what it could be used for, what is it used to bring about in terms of setups? What place does it hold in Power 3? for the daily range construction.
All those things are building blocks. They stack on one another to present what the daily range will be at the end of the trading session. Now, no one else out there has this information because if they did, they would prove it, they would showcase it, and they would be able to implement things and show you before it happens.
And there is no one walking this planet that's able to do that. In the recent years of me teaching and talking about these types of things and giving concepts and conceptual ideas, that audience has grown. And their affinity for the idea is that these markets are absolutely 100% scripted and controlled by an algorithm. It's no longer taboo, but there's still a strong opposition to the idea, and that's good. That means that there's always going to be liquidity.
There's going to be people that's going to be able to be the opposite side of your winning trade. Because they are not informed. Okay? So that's a benefit to you.
And if you're in a conversation with folks out there and they're arguing, saying that what I'm teaching or talking about doesn't exist, it's made up, contrived, let them believe it. Let them believe it. It's okay. Don't try to win every argument with these people. Okay?
So I want you to think about how I taught the opening range in the morning session that's being specifically aimed around the 930. to 10 o'clock in the morning, 30-minute interval. So that segment of time, that is the algorithmic opening range. There is absolutely, I don't care who tells you what, there's no other opening range except for that 30 minute interval.
Okay. If it's less than 30 minutes, it ain't algorithmic. It's just somebody trying to make up something.
But the algorithm absolutely uses that first 30 minutes and it does the same type of thing at midnight. New York local time. For the folks that have been with me as the Inner Circle Trader, and I was doing predominantly just Forex instruction, you all know that I taught a concept, and you can find it on my paid membership and mentorship lectures in this YouTube channel. All you have to do is look for 2016-2017 playlist for the mentorship. Those are the actual lectures that you would have had to pay me for back then, and I've uploaded them on my YouTube channel for free.
Because there's lots of people out there that still sell it to people that don't know that it's on my YouTube channel for free. And I get emails all the time. I wish I would have known.
Well, I tell it all the time. Go through my content. You can see the playlist.
Search through the playlist and you'll see I've literally gifted it to the community. I don't need the money from it anymore. And I'm never going to do another paid mentorship.
It's never going to happen. So why am I doing this? Because I love doing it. Okay. And I promise you the ad revenue isn't that great.
Okay. And. I can make a lot more money trading than the ad revenue will ever pay me. So pull up your sleeves, grab a writing utensil, and get ready to take some cool notes because this is the information. These are the things I was using back when I was running up those accounts over millions of dollars when I was trading the Forex markets.
I was teaching and lecturing over live price action, and everyone that didn't believe in me had all these crazy… thoughts about how I was using some kind of delayed data. I was using some kind of a white label broker and I was keying in trades after the fact. Well, now you've seen enough of me doing it with live executions, with a live broker, with live broker statements.
Okay. It's kind of hard to make that argument anymore. So what I was doing back on baby pips when I was able to go in there and trade and nail the high of the day and the low of the day, how was I able to do that? It's this.
concept here that starts it all off. So again, we're going to first present the idea in the NASDAQ, and then we're going to give an example in the pound dollar for Forex traders. So this is the midnight opening range.
So the first thing you got to do is obviously find electronic trading hours. So for the folks that don't know, I don't necessarily know what plan you have to have for trading view. So to avoid the idea that I'm trying to sell or getting any kind of affiliate marketing type thing from TradingView, which they offered it to me, I declined it.
I don't do any affiliate marketing because that way my opinion is 100% organic. It's not influenced by anyone. I'm not paid to say I like something or don't like something.
If I say I don't like something or I like it, I like it or I don't like it. And this is simply that. So I don't know what plan you would have to pay to have TradingView offer this for intraday.
charting when you're looking at index futures. I don't know, to be honest. I have the highest form of plan at TradingView. So I have the pro platform. So I can see things that maybe your plan or if you don't have a paid plan for TradingView, you may not have this option.
And there's nothing I can do to correct that for you. So just know that I'm being honest with you. I'm being sincere about it. I don't know personally what plan would offer this if it If it requires you being a paid member of TradingView.
So just bear that in mind. I apologize if that's offensive or if it makes you mad. I don't have any control over that. So you're going to be looking at it through electronic trading hours.
And by having that, you're going to be able to see basically Globex hours trading. That means the off session or non-regular trading hours. When you have it on electronic trading hours, what you're going to do is you're going to grab your vertical line here, and you're going to find midnight.
And you always have to make sure that your chart is set to New York time. I don't care where you live geographically on this spinning rock that we call Earth. You always have to set your charts to New York local time because everything runs by this algorithm on New York local time.
Whatever it is in New York time, that's what your chart should be set. set to so you can see everything based on algorithmic delivery. Anyone tells you other than that, they don't know what they're talking about.
If they talk about algorithms and they're not specifically talking in Eastern or East Coast time, they're completely oblivious and they don't know what to talk about and just run away from them because they're frauds. So at midnight, we have this beginning reference point. So that's the beginning, and this is the end at 1230. So you find 1230 on a one-minute chart right there. See that?
So now all you have to do is find where is the opening candle at midnight right here, that candle, the low and the high. There's three reference points there that are very, very crucial to me as a trader. So when I coded this algorithm, I wanted to have the benefit of having The parameters of a daily high, a daily low, and that way I can find the plethora of setups between those two daily range extremes.
So that means I could trade with the idea that I know it's likely to reach to this degree of price because it's going to be the high of the day. And I can trade to this degree of price because it's going to be the low of the day. And while I'm in between both of those reference points, if I know what time of day it is, I know how I can implement the meet. basically, on that bone between the high and low of the day. So there's a plethora of setups in between those two reference points.
Now, it's not my goal to teach you how to pinpoint the daily high and low, but I'm going to give you some hints like I did to my paid membership students in the 2016-2017 mentorship where I was teaching them daily high and daily low. Now, there's a lot of things that go into that. And again, I'm not going to just simply divulge that because that is such a degree of...
There's no competition when you have that. There really is no competition to it. But you don't need to know the very high or low of the day. But you can anticipate a rough idea where that might be a couple times a week with what I've already taught on my YouTube channel. And I'm going to give you some more information here.
So it kind of like will help you if you have all my old videos from baby pips days. You can go back and use this idea here and back test and see exactly what I was doing. And it was just like I'm showing you here tonight. Okay. So what three reference points are we looking at?
Well, the first thing is the opening price at midnight. On this candlestick right there, I'm going to plot that like that and widen this up a little bit. So you can see that range a little bit better.
I have to be careful because if I'm not, this could be very easily. another hour long video and I don't want to make a long long video because I know the attention span of new students isn't that long and unfortunately they sometimes lose interest and they don't ever really get the chance to appreciate what's being shared so we have this level here and I'm going to thicken that up You don't see if I have this little recording thing. It's always in my way. And then we're going to clone that, and we'll plot that right there on the low. So now what I have here, and I'll make this a little bit thicker as well and make it black.
And I'll change that to a dashed line. So that's the midnight. opening price for power three power threes your daily range candlestick formation this high is the midnight opening range high and this is the low of the midnight opening range okay so this information once you have it it provides a great deal of insight okay and if you look at what i was doing in the trade last night with my son caleb you All of this move here, I anticipated that and was showing you where it would draw down to. And it's really based on simple liquidity. This low right here, right in here, this inefficiency, this is a buy side of balance, sell side of inefficiency.
And then we have the liquidity resting below here. So these are all draws in liquidity. And I was mainly using this frame of reference there. So if we go back over here, once we have this information.
I'm now going to take these lines that are vertical off. So you no longer need them. But now you know what it looks like and how to frame it yourself.
In this drop here, from the high down to the low of the midnight opening range, I want to look for inefficiencies, order blocks, breakers, any PDA ray that I've taught in month four content of my... paid membership and mentorship lectures. The way you look for that on the YouTube channel is go into 2016 ICT private mentorship playlist and look for month four.
And I'll go through in that number of videos, I go through my PDA race, the first introduction of going through them. Not all of my PDA race are taught in that playlist, but the majority of them are introduced there. Not all 81 of them. So. If you notice this level right here, this single candle right there, that is your first reference point where the largest degree of displacement takes place.
Notice that? Now, sure, we had a civvy over here, but this one right here, much more pronounced. Okay, much more prominent.
It really jumps off the chart. So by having this and measuring that inefficiency, we can now have a graded inefficiency that can be utilized. Oops, I just grabbed the wrong thing. We can use this information and go forward by having a, and real quick, last night I taught you that, see how this closing price is below the next candle's opening price here? You see that?
So this candlestick's close. the bottom end of the body, basically, that is lower in value than the opening price of that candlestick. So that's why I'm putting that shaded box on the wick of this candle and not this close, okay?
And the same thing over here. This candlestick's close is lower than this candlestick's open. So there's no volume imbalance is what I'm basically getting at. If there's a volume imbalance, you have to make sure that you encapsulate the CIVI or bison imbalance cell cell inefficiency, BISI.
which would be the opposite of this. This is a SIBI, one single candle that's bordered by a previous candle that doesn't share the same range, and a subsequent candle that doesn't share the same range of this one single pass-through on here. So now we have this extended through, and now this displacement, the algorithm will refer back to that. It'll go right back into that range, and how will it use it? Well...
We have gradient levels here, the lower quadrant, consequent encroachment, which is the midpoint of the range high and low that creates this single cell side unbalanced by side inefficiency, and the upper quadrant level here, and then obviously the high and the low respective of this inefficiency. Now, by having this information, we can go forward and use things like FIBS that give you mathematically derived projections to where the daily highs and the daily lows will form. Now that sounds crazy, right?
Like there's no way, come on ICT, you can't do things like that. Well, you can't, but I can. So if you take the high here of that opening range at midnight, and we plot that like that, you see that?
Now I'm going to go into the settings. So you can see again, here is my Fibonacci. settings and if we add things like negative point five negative one things of that nature We can get projections that will take us above these relative equal highs How high can it go?
How high can it go if it's going to sweep above this level here and how low can it go? When it starts to break lower should it do so Well, if we scrunch this thing up here a little bit and we apply the fib both directions. So here's negative 0.5 and then negative 1. And then we have the standard deviations that are projected lower.
here And then we have things that we can project going forward. We have some relative equal highs up here. So it's buy-sell liquidity. And we can anticipate price running up into these levels here. And then we have standard deviation negative one.
Now, what is that measuring? What is it that you're actually getting from that? You're getting the range low of the midnight opening range. that 30-minute interval between midnight and 1230 Eastern Time.
If the market trades above it, then it can go one half of one standard deviation or one standard deviation. So in other words, the actual range from the high to low, that range added to the high. That's all it is.
So think like measured move. How hard and fast it goes to that degree of premium or discount is relative to an economic calendar event during London. Okay, so this is all helping you trade London session.
That's what it's really based around. And I'll give you some more details in a moment. Just bear with me, okay?
These are very, very complex concepts. So when I sat down and I was coding all these things to make it fashionable, where knowing what it's going to do, repeating it, and now it's going to refer back the same reference points, and over and over and over again. That is something that I can't obviously teach and showcase in a video. Certainly, I'm not going to do it on YouTube anyway. But just to give you the nuts and bolts, if you will, this is a very easy brass tacks approach to finding the one or two levels that generally, not all the time, but generally will deliver what you're going to be looking for for a daily high or daily low.
We have relative equal highs over here. See that? So this one here is enough to do that. It trades up into it there. But then we have standard deviation one up here.
So watch what happens later on in the day session. But for right now, I want you to look at what we have in London. We have the standard deviation based on this inefficiency.
If we take the range from low to high, that's this low here to that high. Half a standard deviation, one standard deviation. If we use the inefficiency, we can do the same thing there where we can take those levels and now we'll plot them from low of the inefficiency to the high. Now, I already know that there are very, very critical minds watching this and they're saying. This is overcomplication.
Okay. I already told you that it's something that it's not found in other books. No, the educators, Gann doesn't know about it.
Wyckoff sure as hell didn't know anything about this. Larry Williams doesn't know anything about this. Nobody else knows this stuff because you're talking to the Mac Daddy who put it together. So this inefficiency here, if we use that same idea of standard deviations from that, we can also get very, very precise elements. to how the algorithm will rebook and re-deliver to premium and discount, even inside of that midnight opening range.
What do I mean by that? Well, this is first presented displacement, okay? The displacement in and of itself is a PV array.
Remember, we've already had a inefficiency offered here, here, okay? So it's not that it's, you know... cell sign of balance in and of itself it's a Very large one and it's occurring inside of the midnight opening range.
So it jumps off the chart It's the first presented Displacement notice that so what happens when I add these same levels that are here negative 1 and negative 0.5. What if I add that? to this inefficiency on the upside? Well, you get these things like this.
You get the 50 or half of it. That's this level here. Look what the bodies are doing.
You see that? Look at all this. The close of that candle, the open of that candle, all this consolidation around there.
Look at the bodies here, here, and it moves away from it. And then we have the negative one-strand deviation here. What is it doing? It's creating this delivery of that high. Look at the bodies working around that and all the consolidation around here, and it runs away from it there.
Now what happens when you use this same idea and we add it to the projection below this inefficiency? You start from the high down to the low. Negative 0.5.
You can see how we're working this level here. And then finally at negative. one standard deviation.
We see it here, here, here, and then rallies and starts working inside of that displacement in and of itself. So we can see there's boundaries that can be created with this. So the markets are absolutely not random.
And you're going to try to argue with me and tell me that all the buyers came to the conclusion that this is a good time to buy and sellers said, no, we're not interested in selling anything lower than that. So therefore the market stopped, turned on a dime and reversed, right? Same thing here.
The market is just going to randomly go down to that level here, stop, turn around, and go higher simply because sellers are no longer interested in going short and or buyers overtook the buying or the selling of short sellers. That's not how the markets work, folks. And for the folks that are leaving comments and saying you don't even know how the markets do auction, you don't know auction theory, you don't know algorithmic price delivery. That's the problem here. There's a break in communication here because you don't know the language of the marketplace.
You can. Read all the books and listen to all these people talk about how they used to work on the floor, and they knew this and they knew that. These same people are in my mentorship.
So come on, please. When you look at the degree of precision and find it anywhere else, you're not seeing it anywhere else. Floor pivot numbers ain't going to deliver this level of precision. It's not there, folks. It's a blind man.
Ain't going to do it either. But now watch what happens. When we trade outside the band of this range, notice we're… probing below it here, but it's only going one standard deviation of this inefficiency, that low right there.
Remember, go back to it and look, see, look at it. It's controlled. It's only allowing one standard deviation outside of this when it went lower.
I'm not interested in seeing it go below that low because I don't think it's going to do it. Why? Why was I interested in only getting out when it went down here?
Why was I doing that? Because this inefficiency told me that this one standard deviation down here is about as far as it'll go once it trades to my target three. Look at the video from last night. Okay? So once we get back inside of this inefficiency that's in purple, then I can start looking at the quadrants, the consequent encroachment, and the high and the low, the actual inefficiency.
So you can see the low of the inefficiency here. Again, that's this candlestick's high. It's supporting it here, rallies up to upper quadrant, trades back down. It trades just outside of it here, but then goes right back into the middle and starts consolidating around the consequent encroachment or the midpoint of that purple area.
Then the market trades one more time lower, and now it's allowing price to go outside the range of this inefficiency because it's enticing. It's luring traders to go short, and it's probing for liquidity below this low. And anything that's around here, they'll probe that and try to see if they can get that. But they got a short-term low here.
They worked below that and then rallied back up inside of that purple shaded area, which is the first displacement in the midnight opening range. The market rallies back up, trades to the high of the opening range at midnight here, then back down the consequent encroachment. Consequent encroachment, that's the red level. which is essentially just half of the purple shaded area, which is this inefficiency.
Now think about it. These are all rule-based ideas. It's not contrived. It's not conjecture.
It's not just pulling things out of randomness. These are things that I want you to go back and look at your own charts. Just watching this video and being frustrated, saying there's no way. This is too complicated. I don't know what to do with this.
The information that you're going to glean by going back over old data, old price moves, is going to be astronomical. It's going to get your gears turning, and you're going to be looking for these types of things and how it's influential going forward. So we get to the low of that inefficiency again here. What time of day is that?
It's 2.41. That's London open. You're going to be trading the London session.
I said, D, can you please do a London session? Can you talk about the London session? I'm doing it.
I'm doing it. It's right here. This is the stuff I was doing with pound dollar, euro dollar, and I was smoking the Forex market. I'm smoking everybody else out there in their bull crap that they believe that causes markets to go up and down. Because this stuff works in Forex too.
Think about it, folks. You're getting to see what really is going on behind the facade of just technical analysis. The source code is being revealed right here. Right here.
You can't escape it. It's right in front of you. It's been hidden from you all this time because you're not looking for the things that reveal it. Because its author never talked about it.
So we're looking at this rallying higher. We took this period of short-term highs here. That buy side was taken here. And then where does it go? Right back down into that first displacement in the opening range at midnight.
Creates a short-term low. It trades below it again and goes right to the lower quadrant. Look at that. You can't get any plainer than precision.
Look at that. Look at the low. Look up here. Look at this value area here.
Keep your eye on that. Right there. See that low? there?
What's that low? 21,705.50. Now watch.
Watch. Ready? We're going to take our time travel way back here at this random candlestick that was just picked out of thin air, right?
What's the value of the lower quadrant? 21,705.50. Folks, Gann, Wyckoff. All these jokers from the old days, okay, that looked at charts and they pointed to things and they said, this is what makes the markets go up and down. And they only explain things in hindsight.
I'm giving you things that's going to predict the future and it's going to continuously predict the future. And I don't want you to take my word for it. I want you to go back to your charts and look for these signatures because I put them there for you to see all the time.
Time. Emphasis on time. Stops right there because of selling pressure was abated and now buying pressure came in.
Come on. It's not what's going on, but it's a wonderful fairy tale. So the market does what? What is it going to do here? What's it going to do?
Delivers on 3.30 macro. In London session. Go back through my Forex lectures. I tell you very specifically at 3.30, that's your sweet spot.
Don't take my word for it. Do not take my word for it here. Don't just say, well, ICT said it in this video on January 7, 2025. No, no, no, no, no, no, no, no, no. Go back through my lectures in the 2016, 2017, and listen to what I'm talking about.
Listen to the old lectures that I did on Twitter and Twitter spaces. Two years ago, I talked about first percentage of fair value gap, just casually mentioning it. The astute trader, the apt pupils, heard me say it, and he took notes. And he said, what's he talking about? And they all of a sudden, boom, they could see it.
I dropped the breadcrumbs for many years. But if the person that's sitting down and watching my video or listening to me lecture, and they get drownded by the depth. And the word salad that you think I'm putting out here, I'm not talking to hear my own voice. I'm talking to teach you.
But I'm also teaching in a way where only those individuals that really want it and deserve because of their work ethic, they're going to get it. I'm not interested in creating one, two, three, copy me. Here's your plan. And there it is. Go run and make money, make books, sell courses and be a mentor and sell mentorships for a thousand dollars to get in and never have to prove that you're a trader.
Come on. I'm not putting people in business like that. So at 3.30, the market starts to run away from lower quadrant of the first displacement in the midnight opening range. The market rallies aggressively up to some random projected level, negative 0.5, and then creates a retracement, makes a higher high, fails to take out the high, and then we trade back down into the first displacement again. Stops dead-end at the high at 5 o'clock.
Now London session is done. What's going to take place now? We focus on the day session. Now what we'll do is we'll scrub over to and jump right into the 9.30 session here.
And notice how we traded up in the electronic trading hours. right ahead of the new york opening bell at 9 30. see how the price trades up here look at this That's that negative one standard deviation on the midnight opening range. See how that delivered that?
And then you had this nice turtle suit rally up and then breaks down. You see that? See that right there?
Now, inside of this area here, okay, I want to refer back to a reference point that's found in regular trading hours. So if we go into regular trading hours, and I don't know again if... you have the plan with TradingView that allows you to see this. I'm not selling for them.
They offered me an affiliate program. I denied and declined it. I'm not interested in doing any affiliate because I want, again, my opinion about things to be organic.
And I'm not for sale and you can't hire me. And if I don't like your product, I'm going to say I don't like it. If I like your product, I'm going to say I like it.
I'm not asking for any kickbacks. Okay. So we're going to go to registrating hours real quick. And I want you to look at this little area rate. Here you see that so right here That's the opening price here and the difference between where we sell the previous day at regular trading hours Yeah, boom boom those two reference points there So now watch if I highlight that Volume imbalance because that's what this is and I'm going to highlight that with this shaded color.
Okay? Now, because I have this here, I can go back to electronic trading hours. I know this is so complicated ICTing.
This is hard. Right. And that's why you don't see anybody able to do the same things you see me do.
He's such a narcissist. No, I'm just telling you the truth. Having this regular trading hours reference point, volume and balance, and extending it forward.
And we're going into the 930 opening here. The market takes a dive, trades. Look where the bodies are. You see that? That's that midnight opening range.
See how it's did that? See how it's respecting that? Gann had nothing to do with that.
Wyckoff has nothing to do with it. Hearst Cycles has nothing to do with that. Sam Siden Supply and Demand had nothing to do with that.
Volume Profile had nothing to do with that. VWAP had nothing to do with that. Nothing to do with that. And the market does what? It rallies right back up into that same area.
And look where the bodies stop. in my volume and balance, in my source code, my reference point that I say, you can go no further. You stop right here.
And the market breaks down once more. And it does something that I've taught in 2024 and mentioned in audio in Twitter spaces in the summer of 2022, inversion fair value gaps. Well, let's add that real quick. So the market's doing this.
It's going from here. See, look at that volume imbalance. See the difference between this candlestick's close and this candlestick's open.
That green candle here, there's a small little portion of price action right in there. And let's take away this extent, right? We don't need that for here. And if we look at that, that volume imbalance right there.
We have to use that when we're referencing buy side and sell side imbalances. So this inefficiency on the upside, normally we would expect it to trade back down because anyone that's watched my work, they'll say, oh, it's one of those fair value gaps. It's simple. You just go in and you buy that. Wrong, wrong, wrong, wrong.
The idea is we've already made a run and created the high and then it bumped it here at 930. The high today is getting rated. Then it grades lower. Everybody wants a dog pile on it and go short.
And then they'd send it right back up to that imbalance, that volume imbalance. And then we have this move lower. And this is an inversion fair value gap.
So once we trade through it, coming right back up into the bottom of it, look at the bodies. Is the bodies respecting the halfway point? Yes. Want proof?
Let's do it. Here's the midline. Look at the bodies.
Stopping. Dead in its tracks. Boom. Lower she goes. Lower.
Okay. And let's aim for 640, 21,640. And then we'll be content with something like that.
So we can go in here and do something like, I don't know, maybe share some executions. And there we go. Boom. Inversion favor, I got. And taking profit, selling short two more, and then doing another quick recovery in there.
So we're seeing that we have no real interest. I'm sorry, I said it went short. There's me adding, going long.
So covered, went long, went long, and then sold the two contracts there. So I did two things there. I went short. You can see it there, short. Buying it back, and then going long, and going long.
You can see it right behind that right here, going along there and going along there and then filling out of it right there because I wasn't content with holding it. I wanted to see it come back up and bump into this and then I was going to reverse it and add more going short. But I didn't like what it was doing.
So it is what it is. So all in all, that was how I engaged today. I really wasn't going to do anything this morning, but I figured, well, you know, this is pretty. Pretty easy.
Let me just get involved with it. But in here, once we traded down into consequent encroachment of the midnight opening range, it's a 30-minute interval between midnight and 1230 Eastern Time. We went to consequent encroachment, traded back up to the high. Look what price it's touching.
What's this dashed line? Remember that? That's midnight opening price, hour three.
We can say that right here, that's the high of the day, this candlestick. The open is here. And one more time, they pass back up into a premium.
We break lower. Inversion of fair value gap. Michael gets short, rides all the way down, slices through the midnight opening range.
And look what it does. It leaves it aggressively. It's no longer interested in coming back to test it as a resistance or premium array. That's what it's indicating. The market's extremely heavy.
So look for lower prices. So we can see that the market does in fact offer my 21,640 and it pushed down aggressively and with slippage 21,630. And then I did some reversal trading in here to try to scalp a little bit. I was able to finesse a couple little points in there, but then buried that idea quickly because we couldn't even get up to this level here where I wanted to go short and hold on to it for the regular trading hours gap that was afforded.
You know, traders that were looking beyond just simply yesterday's opening range gap. So I told you I would look at things with the Forex market. So let's take a look at the Forex pair and Forex. Forex.com, that was always the broker data feed I used when I was teaching Forex.
And here's pound dollar or cable, as it's usually referred to by as Forex traders. All right, so now let's go back through real quick, because this is already a very, very long video. And this is not what I intended to do, but I apologize.
It's just sometimes it's just going to be like that, right? I'm going to say there would be days like this. This guy loves himself too much.
All right, so we're looking at the same thing here. We're going to look at the midnight. Start here.
So we have midnight candle right there on a one-minute chart. Notice that here, one minute. And then we're going to do the same thing with 1230. So that way it'll give us the midnight opening range. So that's your range, okay? And what you're doing is you're getting...
Three reference points there. You can add the fourth one being the highest high and the lowest low and the opening price. But we're looking at this candlestick here.
Since it's a down-closed candle, that means the open of that body is your midnight opening price. So we're going to do this. So there's your midnight opening price for power three. Then we're gonna look at the low in between these two vertical lines.
What's the lowest low right here? All right, and then we'll make this Pretty little color purple the color purple. That was a great movie I don't know if you guys watch that that was one of the real let's make it bright real beefy that's one of the good movies that came out during the 80s the Goldberg and Great actors were in that.
All right, so we have our opening range at midnight, opening price, the low, and the high. So now with this range here, what can we do? Well, we can grade it. That means we do a run from low to high. And it will allow us to do what?
We can see price runs. And more specifically, inside this range, we're going to highlight that. So that way we can project it throughout the entirety of the day. And we'll see how that is influential with price action. And let's do it purple.
And then we'll extend it to the right. And then now this here, we can do things like. Run standard deviations off of this where there's one standard deviation then we can do The displacements like this is the first one here So that's your first displacement higher leaving this consolidation here So you can take that and project that into the day as well Kind of like treat it like it's the first presented fair value gap and we'll make that white Simply because it should stand out now. Okay Notice it's also encapsulating the opening price at midnight. See that?
So there's a couple things there that are agreeing, and also this is consequent encroachment of this entire range at the midnight opening range. So there's a couple things that are converging in their confluence in this little, small little range of price action. Let's scrunch this up.
And I want you to you can see how we have the market reaching higher and then it dies back down into Negative point five here the device here and then look what it creates right there Relative equal lows you see that that right there is a trap They're just letting that look like it's this real good support. And then they rally it higher up, takes us up into, it looks like it's a standard deviation, six and a half or six, maybe it's two, six and a half, six and a half. And the market rolls away from that and then drops right down into, oh, what's this time? What time is this?
What time is that right there? $3.29. In Forex, I taught you the sweet spot for London session is exactly $3.30. And that's when the algorithm comes in, fires off. And what's it doing?
Oh, it's just randomly trading down into that first percentage of fair value gap inside of the midnight opening range. Oh, my goodness. Virginia, I believe this young man's got something here.
And I don't think I've ever seen it in any other person's books or courses or mentorships. Oh, my goodness. Look at this.
And then it takes off. No. It rallies, trades right back down into the midnight opening range. And then sends price higher. And then works off of the negative 0.5 level and the negative 1 level.
And then rips through, tears the face off of traders that are. Short here, way up here. So my question to you is, do you have a mentor that teaches you how to take that trade with that degree of precision that's not using my smart money concepts? I bet you don't.
I bet you they're asking for money and you can never find these types of trades and the logic behind it. So why are you paying them? Why are you paying for those things, huh? Because you're getting it the real direct way, right from the horse's mouth right here.
So you can see that there's a benefit, obviously, to having this information and knowing the time. Listen to me. The time that the trades should form and deliver. That's how you don't have to trust that I'm I'm telling you there's an algorithm. All you have to do is say, okay, he's given me these reference points to keep looking for it.
Do these things. Keep repeating. Yes. And they're not found in anything else.
It's the wonderful thing. I stand on that all the time. And many times it's people's throats that I'm standing on because they want to fight it.
They want to argue and they say that you can't be that guy. You can't know these things and you didn't make it. You rebranded it from someone else.
And you got $5 million direct wire from me. If you can go through anybody else's stuff and find this because it's not there. 1996 codified.
Oh, Michael. So anyway, the market trades lower. And what does it do here? Comes all the way back down into this area here. Look at this.
Look at the bodies respecting. It's almost like it's been told behave this way. And then it rips outside of it, which is normal.
It's introducing the idea that, okay, it's going to keep going lower. And then it doesn't. It comes right back into the range, works the upper quadrant level. And look at the bodies. Look at that.
Lower quadrant level. Rips higher, comes right back to the opening range at midnight. Look at that.
Isn't that beautiful? Isn't that beautiful? Seriously, all silliness put aside. Isn't that just beautiful? If it's going to come back down and go higher, what's the easiest low-hanging fruit objective if you're a Forex trader?
And you want to trade that at 8 in the morning during the New York open kill zone. Remember that? Here's buy sign. It's easy.
Trade from here to there. Booked. Done. Done and dusted.
There's so many setups here. So many things that you can build off of. But the main thing is this.
Are you looking for the moves that really like to launch and take off and rip the faces of traders that don't know any better? That's what I'm teaching you. That's exactly what I'm showing you right here.
Daddy's pulled back the veil and showed you who's really informed. Because the price is always delivered by a time-based delivery mechanism. That is the algorithm.
It's not buying and selling pressure. Convince me. Seriously, convince me that buyers and sellers are using these reference points because no one else has thought about it. So where is it coming from? I didn't get it from anyone else.
I didn't borrow the logic from anyone else. I didn't rebrand it. I didn't borrow the concepts from someone else and say, let me make a name for myself and call it something else. That'd be foolish.
That would be foolish. Of anyone, especially someone like myself, I have a very large following. You would think out of 1.5 million people that are just subscribers, and I have most of the people that leave comments on my videos aren't even subscribed to my channel. So that tells you there's a whole lot more followers of the concepts and videos that I produce. We're in the millions.
And those millions can't come forward with the evidence that this is somebody else's stuff. Come on. I've invited you to do it.
And I told you, I'd reward you because it's a safe trade. I'm never going to have to put that $5 million in anybody's hands because I made this. I codified this. It's mine.
And because it's mine, I feel entitled to be able to share it despite what anyone else might think about that. So that's why I do it. The market does, in fact, trade up there and takes that buy side out.
And we do, in fact, have a one-hour video. So it takes the buy side out here, consolidates this all-time distortion, and then we have the market drop down here. What's coming at 10 o'clock?
Well, if you look at the economic calendar, we had the ISM PMI number, and we had the JOLTS number at 10 a.m. Eastern time. And that's what we're seeing here.
The market dives down, and then at 10 o'clock, it does what? It wicks through up to this SIBI here, which is also a breaker. High, low, high or high, there's your breaker. The trade right into that, hammered it, just a wick outside because the wicks are allowed to do the damage. And then the market breaks aggressively lower.
And it's almost like it was telling it way in advance at midnight that it wants to do these types of things. But I'll leave that up to you whether to decide there's any value in this. But this is one of the tools that I used when I was doing Forex. And I didn't want to teach it to anybody because it's just a secret weapon.
It's one of the things that source code. handlers, let's say it that way, they have that advantage. And all of your best moves are going to springboard off of things like this.
And I have lots of these types of things. This is just one more of those 81 PDA rays that unfortunately puts me in a different category of technician, puts me in a different category of visibility. Because I don't see open, high, low, and close.
I see what the algorithm is doing. I see the reference points it's going to go back to today. in the afternoon, tomorrow, next week, next month. That's what separates me. That's what makes me an inner circle trader.
That's what makes me that. Those things, I will never handle those advantages to anyone else. My children will see them.
But even in their hands with me teaching them, they're seeing how it's not easy. It's not easy to have what I have. It's not easy. And it's normal for you to see all these things and say, man, this is really complicated.
But here's how you should take this information and go forward with it, okay? And then I'll close it. I want you to think about how we're finding the framework with this information.
The opening range gap, we talked about that yesterday. It wasn't the first time I talked about it, but that's your first beginning point. The framework that you use around opening range gaps is derived by the midnight opening range. That's the 12 o'clock to 1230 Eastern time. Before you even wake up to trade in New York session, you should have at least referred back to that area of price action and carry forward that information like you're seeing right here.
Every significant price run, I promise you, I promise you, every significant price run that's worth its measure in terms of significance. The move that every trader wants to be a part of, that's where my PDA rays shine. They ferret out all those types of moves. And nobody else's concepts can ever brag that fact. They can't do it.
There's nothing close to what you're learning from me, not even remotely in the same vicinity. We're light years above and beyond and outside the reach of anyone else out there. And this is nothing still. This is still nothing.
If this was something you would learn in grade school, I have things that are PhD and mastery level. And this is like first grade. That's how deep this goes. That's how much precision and time-based oriented price delivery, just like that. All scripted, all coded, all codified.
It'd be one thing if I said it and never proved that I could use the logic, but I showed it to you last night. I have students all the time. Can you show me London? Can you do something in London? You keep promising London, London, London.
I just gave you the golden ticket to trading the London session. You don't ever need to have me talk about the London session ever again. With everything I've taught in the 2016, 2017 paid premium mentorship lectures that I've uploaded to this YouTube channel, go look at the playlist. You'll see it.
Go through all that content if you want to be a Forex trader. and then apply what I just shared with you tonight here. You will be unstoppable.
You will be a force to be reckoned with, and you're not even going to be able to accept the fact that you now have this visibility. It's going to be years, and you're going to be still looking at it thinking, man, look what I can do. Look what I can see. Look at the visibility.
Right. Now imagine going almost 30 years with that information behind your belt. Walking among everyone else that thinks they know what they're doing, how these markets book price, laughing under your breath because they are thinking these things go up and down based on indicators or buying and selling pressure or VWAP or all this market profile garbage, all of that stuff.
They're all lies that make you believe that you have an advantage in something that's random. And they train you to believe that when you lose, well, it's just something you have to accept. I don't accept that. You don't accept that. You are welcome to accept that.
You are welcome to use flawed logic. Have at it. Have at it. Trust in knowing that me and my students are going to appreciate the fact that you are on the other side of our trades.
And if that sounds condescending and narcissistic and arrogant, so be it. The lion never apologizes when it eats. So hopefully you found this one insightful. Until I talk to you tomorrow, Lord willing, be safe.