what's going on guys John Fibonacci here welcome to my YouTube channel and welcome to my video final hour finesse if you want to learn how to scout the indices on an intraday basis watch this video all the way to the end so you get the most amount of value what I'm going to do is share some tools with you on how I'm able to get entries like this see how we're entering right here almost near the high I want to show you exactly how to do that so keep watching if you've never seen my chart watermarks I highly suggest you pause the video and check some of them out I've only got two here but the one of the top is the most important what does it say it's been there on every live session that you've seen this year or in most of the previous videos but right up here at the top it says time price and context so again that's been staring at you in the face in all of the videos and all of the live sessions so what does that actually mean time price price and context well time is going to be the most important thing especially when it comes to scalps or day trading and especially for this video The Very title of this video is final hour finesse so it's no secret what we're going to be looking at is the final hour so the final hour of the New York Stock Exchange is 3:00 to 4:00 p.m. Eastern Standard Time now I'm from Houston Texas so my chart is in CST which is Central Time so I'm going to be 1 hour prior to this so in my chart instead of 3: to 4:00 p.m. you're going to see 2 to 300 p.m. but whatever time zone you're in 3: to 4:00 p.m. Eastern Standard time is going to be the final hour of the stock exchange and yes it really is that simple it's just a Time block of 60 minutes so what I'm going to do is simply draw two vertical lines at 2:00 and 3:00 and this is going to delineate the final hour now the thing about the final hour is a lot of the times not every day but a lot of the times you can see reversal patterns in this final hour so again if we come back to the watermark up here time price and context this is the formula okay so some of the Banger trades that you've seen on Twitter Facebook and other social medias especially Instagram as well that I've shared these sniper entries right how do you get those what comes from combining the three time price and context so context is the hardest for lot of traders to understand because a lot of it is going to be Theory based but the more that you study the more you're going to understand context so for example in Friday's trade okay now I did take this on a demo account full disclosure it was a paper trade this is es on a 5 minute time frame and this chart specifically is Friday November 3rd 2023 but check this out about 10 minutes before the final hour starts you can clearly see on the chart what the day has been it's been bullish we keep seeing higher highs and higher lows and a lot of Traders would look at this and identify this as an uptrend correct but what is the context behind a potential reversal idea well think about it if you were long from the morning or you were long at this low right here or even this low right here or even some of these lows in here and the Market's trading higher when the market does go your direction what do a lot of Traders do what do a lot of bots do with stop losses they go from a previous low and they get dragged higher right so think about it if there's a stop loss let's say at this low down here okay trailing stop loss well if the market is making a new high what are these Bots and what are Traders doing with that stop loss well they're not going to keep it down here they're going to want to lock in some gains and protect from risk so they're going to drag it up to probably this low or one of these in here depending on which time frame they're looking at but generally when you have this you have multiple lows here there's usually going to be a cluster of liquidity right down here and that is what is important when it comes to context okay so if the day has been bullish it's been rallying almost all day okay on on Friday that final hour is going to be important because again we can potentially expect a reversal if we get some more details which I'm going to show you right now so now that we've got our time window on here and that line that I drew here for trailing stops we can see exactly what the market reached for right at the beginning of the final hour we traded higher a little bit broke down rallied and then continuation lower small little rally in here just to retra R rement only to go ultimately lower below all of these lows now how can you anticipate that this is going to happen well again as I mentioned earlier I'm not always looking for a reversal in the final hour um I don't trade the final hour every single day as well I want to wait for high probability setups and so Friday typically can be a good day for this final hour but what we're going to do is drop down into the smaller time frame so we can get some context as to what was available to potentially trade all right so we've moved down to the 1 minute time frame so we can get a little bit more details than the 5 minute so what actually takes place if you're someone who likes Market structure that's fine you can look at some of these lows you have a low right here couple more on the way up and then you have a very important low right here what makes this one important because you have a low and then you have its last and final higher high now I'm going to show you why this is the highest high and why the high was set in that final hour in just a minute but let me explain to you the opportunities again in this final hour this structure here right there is traded through at 212 so about 12 minutes into the final hour it has broken structure it has Market shift if you will oops it's this low right here okay so now the market has shifted from bullish price delivery now to bearish price delivery okay so with this breakdown what is the formation you see right in here well the way that I look at it is a high these are actually triple Highs but we'll just pick one of them a high or the highest body right here you have a high a low and then a higher high then a lower low okay so how I look at this is a mitigation okay the context here is mitigation so what that means is anyone who has been long who has overstayed their welcome that's that's how I put it they've overstayed their welcome it means they've been in the market too long they've held on for so long it's been bullish and now the market is getting ready to turn bearish so this last movement here is an opportunity for those longs to exit again before the market turns to go lower so right here at 2:14 so 14 minutes into the last hour that is an opportunity not to only exit previous long positions or you could also short this Market here or if you got in a little bit later you have some up candles right there again after the market shifted lower because in bearish markets up candles should be respected so you see that right there as well not the greatest entry but it's still an entry before the market happens to trade lower again down to these price levels down in here which is those trailing stops remember right here so what I'll do real quick is now I will show you the entries or one entry all right so here's what the entry and the exits look like you can see that I entered up here right inside that mitigation okay so this candle right there at 214 soon as it trades higher I'm entering on that candle you can see that I shorted with that red arrow right there and then on the way lower this new low I exited and then I just messed around and exited like one contract at a time uh when it was down here and then right before the close it finally traded lower and Below those lows that we discussed earlier so again mitigation setup to trade lower now this is also very low risk as well because if you think about it let's say 4388 this high is 4392 if we round up so that's only about a 4 point risk on the S&P so that's low risk and our reward was I think down to 75 so 13 points of potential profit so risking Four Points to make 13 points not bad now how do I know if this High has been set well I never really know but I do work in probabilities now if we want to understand that this is potentially the high what we're going to have to do is ring in the other indices so what I'm going to do now is overlap our current es chart with the Dow Jones chart which is ym all right so what we've done is now overlap the Dow Jones you can see that in this uh red pinkish line and then we still have our es in the candlesticks so what we're going to do this is called relative strength analysis and there's two different things that you could really look at here and I'll show you both of them what you need to do is look at the highs and compare them with one another so what I mean is look at this high on the S&P and look at this high on the S&P this is a higher high right but now compare that high on Dow here and then compare Dow's high right here or if you want to line them up correctly technically you would probably use this one right here so the D Jones is trading lower while the es is trading higher so that is a Divergence that is a signature in price in my opinion that tells me smart money is Dri contributing above old highs otherwise they should be both making lower Highs but they're not doing that so Dow is trading lower which means that is weakness in my opinion and the context would be the same for Dow Jones meaning you have all of these lows down here which the market should trade to and they both do okay so this is how I trust if the market has made its high on any particular index but again this example is e so with that higher high to me that's distribution with Dow Jones trading lower that to me is weakness now that is one of them now what's the other one well if you didn't look at the morning highs that's okay even if you looked at this small time frame here the Dow Jones is trading lower from 152 down to 207 so this little small time window in there the Dow Jones is lower and at that same time es the S&P is higher so in either way whether it was a small time frame Divergence or that Higher One where we have the current PM session High taken okay in either sense that to me signifies both that es is in distribution and that Dow is weak and then again they both trade lower so a lot of the times when you see a higher high on one of the indices that to me is typically the one that comes back to mitigate this to me again is a mitigation and that's why I entered right there and then you see me exiting on the way lower so how do I know if the high or low has been set I don't always know again it's probabilities but this to me signifies distribution and so if we have a bullish day it's been bullish all day and then we're finally seeing signs of distribution that to me could be a reversal the Market's only going to go up right until it's ready to go lower and this right here is one of those signatures in price that I like to look for all right and here's the last thing I'll leave you with the market really only does about four things and one of them is that the market moves from liquidity to liquidity so you can see that here that previous High we see the market trade up and above that hitting that previous High liquidity and trading down to the lower level of liquidity I mean don't take my word for it look at the chart look at previous charts that's what the market does it moves from liquidity to liquidity and check this out that mitigation here right there is also that old high right there okay so a little bit of Confluence there but again I think the most important thing here is the time don't forget the 2:00 time window is right here so right at the start of that final hour you see that here distribute one more time and then break down a shift from bullish price delivery to bearish price delivery and you see those signatures in price okay so with that being said I hope you enjoyed the video if you got value drop a like on it as a growing Channel all of those things mean a lot so if you could leave a comment as well I would greatly appreciate that so thanks again for being here I will see you in the next video