Transcript for:
Understanding Chart Annotation and Price Action #16

Well, hello folks. So obviously this is the very first video here. It's a review and it's more or less an exercise on showing my son and all of you that wish to follow along in his journey, how to annotate your chart.

Okay. And how to log individual segments of price action in full disclosure. Obviously there's times in the live streams that I'm doing on my own channel. I'm live streaming and outlining price action. I'll prompt you periodically to screenshot.

And when you do that, if you're watching it live, you should be doing it with your own charts, not mine. For the folks that don't have the ability to watch it live when it's happening, you can cheat. I'd rather you didn't do it this way, but you can use my charts to get yourself acclimated and caught up, but eventually you want to be doing it with your own charts. Okay.

So to give my son Caleb an idea on what that looks like, how to log specific charts for a session. So one day, one session, and so forth. What should he have in his chart? What is he focusing on? Things that are going to grow his understanding and your understanding as a student that may be following along, going through the same learning curve as Caleb.

This will give you some idea on how to do that. My suggestion would be to use either a PowerPoint or use notation. There's a lot of different mediums you can use to capture and save your screenshots for an individual day. That way you can annotate any observation, and I'll walk you through what that might be like.

I didn't want to annotate the chart here any more than it's already done. but I'll prompt you on what you could be observing, things that you want to record. And these are pertinent for each individual session, but it's also growing over time, building your understanding of price action.

So this is going to be like a daily meditation. You're going to go through it. It's a routine.

I promise you, it will feel like it isn't going to do anything for you in the very, very early stages of doing it. It's going to feel monotonous. It's going to feel like it's a waste of time. But I promise you will start to see the things in price action because you're doing this very thing, Caleb.

All the things I'm highlighting real time and calling special attention to before it forms and how it should behave. I had to do this very thing to get comfortable anticipating it, expecting it, and then therefore being able to repeat it day by day, week by week. So obviously you watched what I did on Friday where I did very little talking. I talked about only what I was observing in price action.

I didn't rant. I didn't go through any kind of rabbit trails or anything like that. I answered a few questions briefly for folks that had left, in my opinion, questions that were worth responding to. Not that everybody's question isn't worth responding, but where we are in the mentorship for 2024 on YouTube, that's for free.

The level of questions that are coming in, most of them are asking questions that are not germane to what we're doing. They're asking about crypto or something like that. I want you to rewatch that live stream. OK, you'll hear me talking about things I'll mention in here as well.

But I don't want you to take my word for it, because if you didn't watch the video or the live stream live or if you didn't watch the recording of it, you're missing out on some really foundation work for. determining when to sit still, when to anticipate a price run, what side of the marketplace should you be focusing on. So the way I got to that ability and having that skill set is I did lots of this stuff right here, screenshots, logging charts, and then filling in the areas that I leave in my chart open like this and like this in this area over here. And I type out information that's useful to me.

And I'm going to suggest some of those things as we go through. But I didn't want to fill the chart up because I know some of you are just going to take that screenshot and be done with it. I want you to go back and watch the live stream from Friday. And then you'll see that there are much more significant.

Leaps in your ability to see what's going on because you're doing this very exercise not just once in a while Not when it's a good technical day, but you want to do it every single day. So kale. This is what you're me doing going forward and Obviously you're charting and your turn will get a whole lot better I expect it to be neat and if not, I'll be grilling you about that But if you look at the daily chart here upper left hand corner system as deck, okay, you can see that we had this volume imbalance here.

And I'm going to count you to go back and listen to August 13, 2024's live stream. At the end of that live stream, I covered, when we were down here, I said that we were going to go up buy side here. We had a small portion of this CIVI still. We had this bearish order block, the mean threshold, which is being highlighted here with that dashed.

red line. That's what it stands for. Bearish order block mean threshold. So half of an order block is mean threshold. And then I said we had the rejection block.

Then we have the wick here. And prior to that, we have this volume imbalance as well. And eventually, if we can get through all this price action in here, then we can contend with something up here.

But right now, that's where my focus was. And you can hear that. in August 13th, 2024's live stream towards the end of the recording.

So I gave you all the pertinent higher timeframe daily PD arrays to look for when we were down here. We were looking for higher prices. We did not look for lower prices.

We've been maintaining expectations moving higher. So I want you to take a look at how the low of this candle, which is the Sibi high of July 23rd, 2024 here. And then because we have a volume imbalance, you want to have both reference points there.

But because we have to work when price was down here, we have to work one level at a time. So this is a level we have to be aware of. Then the next one is the mean threshold of the various order block. Then we have the high of the volume imbalance inside of the CIVI, which is daily CIVI volume imbalance high on July 23rd, 2024. You'll be able to see that. typed out a little bit clearer because it's all scrunched up for me to show the chart like this.

But this big down-closed candle is a sell side imbalance, buy side inefficiency, which is the SIBI on July 24th, 2024. So we were working all through that price action and then we hammered into the rejection block. We were looking for a run potentially up into this WIX consequent encroachment and it just fell short of that, which was indicative. of underlying weakness.

And we saw that big smash down on Thursday. And then today we worked into the main threshold of that bearish order block, which is the halfway point. And we were looking for indications that we might want to reject that.

Now on Friday, we had Fed Chair Powell speaking at 10 o'clock. So have that in mind. So everything that I just mentioned here, all the salient points, what levels. All that you want to have those annotations typed out about what was useful on each day, how it traded to it, what was the highest high and lowest low and how it worked with these levels that we outlined in advance on the 13th of August. And obviously, last week we did a clinic on how to use this information intraday real time.

All right. So zooming in a little bit. OK, Caleb, you're going to do the same thing whenever there's an area of concern.

or where you're focusing your attention, you want to have a chart that shows the general proximity where those things are, meaning the volume of the ounce and volume of balance. Again, for the folks that don't know what that is, it's any candle that has a body that doesn't touch or overlap the previous candle. So you're looking at two candles that would be side by side. If there's ever a separation between their bodies, but they don't connect at all or overlap. The difference between the previous candle's body, open or close, same thing here.

There is no special distinction whether the candle's up or down. You're just focusing on the separation between the two candles initially, okay? So that is a volume imbalance.

The wick may travel, and it may open up above the previous candle's low. That does not negate this being a volume imbalance. Volume imbalance is the bodies have to touch minimum.

If there's one tick difference, that's still a volume imbalance. So you want to be aware of that. So let's continue on.

Now what I'm measuring here is the difference between the volume imbalance high on the daily chart. Again, we haven't gone down any lower time frames yet. Upper left-hand corner, you see that. So the high of the volume imbalance, which is that candle's close and this candle's opening, we're measuring that to get a consequent encroachment level, which is 19,904.00. that red line carry that through you can see i think it's respecting that on the high on friday i believe so so august 23rd 2024 you watched me outline my reluctance in wanting to go long and then i outlined the short trading down into low day and we'll walk you through that as we go but you want to have that level on your chart as well.

But I'm going to remind you that if we are moving lower and we expect weakness and we have a higher timeframe PD array, like this, we've already worked one candle, two candle, three candle higher than the volume of balance. But now we went below the volume of balance. So the best form of showing respect of algorithm price delivery is that it should not trade into the upper half of that volume imbalance. So that right there indicates that while it could go against my expectations while I was live streaming, it could very easily have traded above and went beyond where I thought it should go, which it should not go in the upper half. And that volume imbalance upper half or the premium side of it is shaded here in pink.

indicating that the new day opening gap on August 22nd, 2024, and the daily CIVI volume imbalance high should not be traded to because we've already went through it one, two, three times and we broke through. So this candle here, this up-close candle here on the daily chart becomes a bearish order block. So we can use this higher timeframe daily chart bearish order block to trade. inside the range on a intraday basis on Friday, expecting that we should not get into the upper half of that volume balance because we left it decisively.

See that? So now we're going to drop in the lower time frames again. Note all the levels here and what they're indicating. And we'll see all those same things when we get into the lower time frames.

Before we do, we have the order block itself and that midpoint. here is mean threshold. That's what's being shown here.

Okay. So I'm reminding you that that's that level and what that is. So it's 19,881.75. All right.

Dropping all the way down into a one minute chart. Again, I'm taking the liberty of assuming that you have watched Friday, August 23rd, 2024's live stream. So all the details that I was outlining there in addition to this. This is kind of the advanced perspective of what I was utilizing. I also referred to this in the live stream too.

So in the one-minute chart, you'll see me reference this area. I'll say that this is a balanced price range. So it's going to take a real move to get up into August 22, 2024 level.

The daily Sibi volume and bounce high wasn't even factored because this was the next PD array that would be above that high, but part of this balanced price range. So we're going to look at this segment of price action. And I mentioned that this was a balanced price range. And what does that mean? Well, we have a small little sell sign and balance buy sign and efficiency between this candle's low, this candle's high.

So Caleb, you would have that noted and the market does in fact trade up into it. We went just a little bit above it. That's fine. The breaks lower.

trades to this low, comes right back up and overlaps over all of the price run from that propulsion block. This is a propulsion block because we have a bearish order block changing the state of deliveries here. We cross over it there.

So any rally back up, we have an up-close candle. The up-close candle is another order block, but it's kind of like an accelerator. It really kind of like pushes price. they expected to go lower and the market breaks lower once more retreat back up into propulsion block sells off one more, goes to a lower low than that low, so we have this low, then retraces all the way back up into the propulsion block, and then finally gives up the ghost and breaks lower and leaves the range defined by that low and that high. So what makes this a balanced price range?

We trade down, up, down, up, so we have worked all of this price action in here. back and forth. It's offered efficient delivery higher and lower.

And then once it leaves it on that candle, once it leaves it, it becomes a balanced price range. So it's not a matter of just go up, down and leave. It's got to go up, down, back and forth, delivering up buy side, delivering down sell side, all of this back and forth price action.

It's a clear and obvious trading range. So it's balanced, it's going to take a very significant price run to get above this high and above this high. So watching the new day opening gap on the August 22nd, during that live stream, you'll hear me say, if it wants to continuously power through, then the next thing would be here. But I tell you very specifically, I am not interested in going long because of the factors over here and what I've outlined on the daily chart.

So this is the balance price range. Balance price ranges are very difficult to get through. Buy side or stops above this high here would be called high resistance liquidity, meaning that it's going to take a lot of movement, something very significant, in this case, manual intervention where the algorithm is overridden by a manual intervention. So they reprice aggressively there because they just want to mess with everything that's in the marketplace.

and that can sometimes happen just look at fomc let's look at non-farm payroll look at cpi ppi those types of events you always want to trade after those new drivers because you don't know what they're going to do at the time of delivery at those high impact or media impact news drivers so whenever you have a balanced price range you want to extend that throughout the day i did not have that on the chart but i have these levels on a notepad so i'm watching it and you can see how quickly the chart gets very very busy you while you're learning it it may be beneficial for you to have this on your chart which is what i'm teaching my son to do okay so just know that we're looking for these things to have an effect on our perspective on price action seeing what price may do around them not that you should expect to know what to do with them right now caleb what you're doing is you're collecting information so that way you'll start having a journal of price action. You can go back and look and the things you're going to learn by going forward with me teaching you, you'll be able to go back and see these setups were there too, but it's not important for you to see them right now, but you do have to have the mechanics of seeing what price action looks like. What is balanced? What's inefficient? Inefficient is this run here.

Okay. So it leaves it energetically below that low. That is displacement.

It's leaving aggressively. So if it comes back up to the low of this area here, up into this candlestick here, that means we have what? We have a return back to a balanced price range, and it should have really hard, the difficult time, if you will, to get through it to get to this PDR.

So this is kind of like guarded by the algorithm. It's not likely to see it trade to it. But if it does, it's indicative of, okay, then there's something else at play. there's manual intervention. I won't chase it going long.

I'll just cut the interest in the day and be done. All right. So with that information, we're going to drag it out to the 930 opening bell, which is right here on that candle.

And that shaded area here is the top of that level right here. That's the high and the low, that shaded area. That is that balance price range on the one minute chart. Again, if you're just looking at this lecture here, And looking at how it's annotated and not watching that live stream, it's going to be completely alien to you.

You will not be able to pick up the subtle nuances that's being shown here. It'll go right over your head. So it's a combination of watching this and going back and watching that live stream again, Caleb, from Friday, August 23rd, 2024. It's not that long.

It's like an hour and 15 minutes or so. It's not that big of a deal. So we have the opening bell.

First tick here. That is the beginning of the opening range. Opening range goes to 10 o'clock. That's essentially right here.

And it started going higher. If you notice, this is your very first fair value gap inside of 930 to 10. During the live stream, this is why I have to remind you to go back and look at it. When I toggle between electronic trading hours, which is being shown here in the lower right-hand corner, I toggle to regular trading hours, which you'll see in a moment.

This fair value gap does not appear because you're looking at regular trading hours. The first tick is here, so you're not even going to see any of this here. So, because we have a minimum expectation of 931, 931, and then after we don't want to use any fair value gaps that start with 930 to 931 to 932, because if you, if you toggle back and forth between regular trading hours by clicking this right-hand corner of your trading view, where it says electronic trading, you change that to session regular trading hours, the very first 930. fair value gap if there is one won't won't exist so you want to disregard that so this is the one and go back and listen to the live stream okay because i actually make a very special notation about that so this is the one you want to have and you want to project that out and look at the observation here and here then rallies at 10 o'clock so we have the initial opening range of 30 minutes trading from here to here So what do we have? High, high, low, low.

And what I was asking is, I want to see, does price want to go down, upset this first. And then if they would have done that, I would have been looking for it to trade here and treat that as an inversion for your value gap. But because we had both 930 high, relative equal high, this low and this low, both being what?

Relatively equal. So what did I teach you going into the 2024 mentorship, Caleb? If we have both and they're obvious, both buy side, clean, equal highs, sell side, clean, equal lows, wait for the first one to be taken. So which one was taken? The buy side.

So this is all fake. This is all a fake run. And how far can it go up? I'm going to sit still.

No problem. But then I watched it drop down. If it was starting to accumulate in here where between this candle's low, this candle's high. Midpoint of that is consequent encroachment of this buy sign and balance sell sign and efficiency. If it would have went down, what do I mean by I don't want to see it accumulate?

I don't want it to go down here, stop, build a candle, build another candle, build another candle. I don't want to see that. I want to see it do this.

Drop down, reverse out of that, and pump up even more. Here's a high. The high goes right to the daily SIBI, sell sign and balance, buy sign and efficiency, from July 23rd from the daily chart.

Hits it. It sweeps above the new day opening gap. That's what you want to see. It drops back down. Does it accumulate at the midpoint of that buy sign of balance sell sign of efficiency?

No, it doesn't. It runs, makes a higher high. What's it trading to?

July 22nd, 2024's bearish order block on the daily charts mean threshold. And what does it leave? Relative equal highs. It drops once more.

We don't want to see it accumulate in the midpoint of this buy sign of balance sell sign of efficiency. Does it accumulate? No. creates a higher low so we're building what sell side what's below here sell side it has not been traded to you so we have the market rally up and then we create this little gap here i annotate that and then we rally above treat it as support and now what's it going to reach for right in here is buy side and i don't want to see it trade up to the new day opening gap of august 22nd i want to see it just bump above that relative equal high. So as it runs up, turtle soup breaks back down, crosses over the bear shoulder block.

And I told you, if it's good, it should rally from here and hit that. If it's really, really bullish, it should run up there. Now to the casual viewer or someone that doesn't really want to learn from me, and there's looking for some kind of saying, I gotcha.

See, you thought he was going to go long here and look, it failed. No, no, no, no. Go back and watch the live stream.

I don't want to go long in this. Listen. The failure right here, once it did this, I noted that I said in the last year, I said, did you notice that it failed there?

It couldn't reach the new day opening gap. That is indicative of weakness. Once this candle here swept down below that opening price of that candle over here, that's the that's the change in a state of delivery.

So every cross above that price action, key point right there, the opening price. That's a short. anywhere in there is a short. Between that and the mean threshold of the July 22nd, 2024, that is a short. This is the turtle suit.

This is the validation of a bear shorter block. And anywhere in between that price point and there afterwards is an opportunity to add pyramid, build, build, build. And then the market breaks down. crosses over the August 20th, 2024's new day opening gap.

The next candle, rally up. What are we touching? Daily Sibi High from July 23rd, 2024. Bam, hits it, breaks lower. I was talking about this as it's happening.

I said, I want to see it trade below this gap here. I want to see it go below it and then come back in, use the lower half of it. Do not trade above the upper half. We want to leave this portion open.

The market. drops down to the next new day opening gap. And I mentioned it could go back up there, but if it does go up there, it needs to reject it aggressively. It needs to move away sharply, just like that. And it needs to keep the upper half open, unfilled.

And that's exactly what we saw on Friday. And the market starts to drop precipitously, aiming for what? Relative equal lows.

That's initial or minor sell side. Now, Caleb, you can do that here because this low is lower than that one. So these are... relative equal lows. But if you're not going to annotate that, you absolutely have to make reference to these and these because that is your opening range cell side liquidity that has not been tagged or engaged.

All of this is due to swing all during 10 o'clock when Powell starts speaking. So this is all manual intervention. This is the hand, if you will, knocking out individuals that were already short here.

I'm not going long. Go back and watch the live stream. They run it up.

No problem. I said, if it keeps going up, it's going to go without me. Listen to what I say in the live stream. There's very little dialogue in Friday's August 23rd's live stream. It's very, very, very focused because behind the scenes, I'm trading.

And I'm also tired. So it rallies one more time and makes these relative equal highs, comes back down. It does not accumulate inside that buy side of balance, sell side of efficiency.

The fact that it doesn't create multiple candles in the midpoint here means that it's going to go down and then sharply run higher. So I'm going to expect what? Another drive above this high and then another drive above this high.

Why? Because this did not accumulate down here. So it means this is just running down real quick and they're going to send it one more time as a pump. Don't take my word for it. Go back and look at price action or if you've been trading for a long time, you'll see a lot of this happening and it's going to repeat.

It's a signature. Okay. So the market creates this gap here.

After running above here, we want to see it pass that over and become a inversion fair value gap. We like the idea of the buy side swept here. So now the market should be in a sell model. Consolidation, rally, all of this is manipulation.

Break lower, smart money reversal, hello. Low risk sell. See the fair value gap, Kayla?

You can annotate that. I'm keeping it off the chart, but you do this on yours. And then we break below the old new day opening gap and go below this fair value gap. And we want to see it act as an inversion fair value gap.

Watch the live stream. I'm expecting this before it even happens. Comes up, we want to leave the upper half open, hammer it.

Breaks. Careens below here. below here, below here. And then what is it working towards? What I opened the live stream up with mentioning that I like the new day opening gap for August 23rd, 2024, which is Friday's price action.

I like that it was inside of the old new week opening gap on August 18th, 2024, that being the high of it and the low of it. And it's sitting right here. That's beautiful.

When they nest like that, that is like a huge black hole. It's going to draw price into it. It's so easy to anticipate that that's where it's going to draw to.

And what you want to see is them pumping it right at the opening. All of this kind of stuff. It's so easy.

It's so easy. You can hear it in my voice. I'm bored. I'm like, I'm not interested in going long. And I tell you that all of this is not real.

We're going to be lower later on. And then there you go. I gave you this reaction here before it even formed.

Like a time traveler, right? So. how much further if we didn't have the new day opening gap down here or the new week opening gap you know what else will we be looking for well let's bring in the benefit of having that segment of price action right up there what do you think that is that little pink shaded area is my event horizon whenever you have a new day opening gap or new week opening gap above and below where you think price is going to draw to between a new new day opening gap like we have here and the low, that new day opening gap there, if you take your fib and measure that, and you put quadrants on it, the upper quadrant, the midpoint, and the lower quadrant, that right there is my event horizon. Notice how it's nesting beautifully where you create the relative equal highs, and then one more time it pumps it above it.

Does the body stay inside of the event horizon? Yes. It doesn't even go above the upper quadrant. So midpoint.

between new day opening gaps and new week opening gaps, the algorithm will reprice to like a black hole. It'll draw price into it. There generally won't be very obvious things, but obviously as an interstitial trader, I'm ICT. So I'm going to show you things that the average bear ain't going to see. I'm going to show you what retail can't see.

Okay. And I'm taking you into where you're not seeing stuff in the candlestick. It's outside the spectrum of a candlestick.

It's in price action, yes, but you're not looking at it in a way where the candlestick's going to make very obvious. Oh, here's pay attention here. So these are basically dark pools.

OK, or gray pools is what I like to use a reference to. There's other gray pools. There's other PDA rates I have that are very similar to this. Not all of them will I teach. OK, but I might share one more during this mentorship.

No promises. But Event Horizon is something I share with my private students. And it is a midpoint between a new week opening gap and a new day opening gap or a new week opening gap and a new week opening gap.

Either or. It could be one of the boundaries above or below. They don't need to be new week opening gap compared to a new week opening gap.

Find the middle point. It can be either new day opening gap or new week opening gap. OK, so there's no preference. There's no special significance or strength added to it.

If. If it's new week opening gap to new week opening gap, that's not what we're doing here. It's any one of them.

But wherever they're in close proximity to one another, using the IPTA data ranges, what is that? It can't be older than 60 days. So your look back with your new week opening gaps, you can't use one that's older than 60 days look back.

Why? Because that's three months. Once you go past three months, the algorithm can use all of them, but I'm using that. range of look back as a maximum of 60 days. So for those that want to know how many days can I keep a new week opening gap on, if you want to hold onto them longer than five weeks, just remind yourself that if it's older than 60 days, I'm not generally looking at all that, you know, with too much interest.

Okay. Especially if I'm going to be using event horizon PDA, right? So that is your event horizon.

Look how beautiful that is. And There's the inversion fair value gap. And I outlined that real time before it even happens, before it even becomes an inversion fair value gap.

I already had it over here. Go watch the live stream. I know it's like magic, isn't it?

So if we watch how it dies below the sell-sell liquidity, the question is, is how far can it go below that? Even if we didn't have the new day opening gap or the new week opening gap here, which I gave to you at the beginning of the live stream on Friday, August 23rd, 2024. So we were there. This is regular trading hours.

So Caleb, you absolutely want to be toggling this and capturing the price action and annotating your chart showing this. So we have this gap between the high here, or not the high, but the opening tick of this down close candle. So that's the first ticker at 9 30, it starts trading and where we stopped trading regular trading session hours at 4 15 PM Eastern standard time. That's what this is indicating. So this is your opening range gap and midpoint is consequent encroachment.

I taught you in this mentorship this year that 70% of the time, the midpoint or consequent portion of that gap that forms between the difference of previous 4.14 PM Eastern Standard Time or regular trading hours close and where we open at 9.30, the next trading day. That is the opening range. If it opens higher, that is a opening range gap that is a premium. In other words, we opened up in a premium. If it opens lower than where we settled the previous day, that is a discount opening range gap.

Okay, so it's a lower gap opening. You want to measure that as soon as you get the first tick, highlight that, and then drop your quadrants on it. The main thing is you want to get that midpoint because you're anticipating it.

So that's what I was watching for. I was erring on the side of I want to see it drop down below here because it would be that run to consequent encouragement or the opening range gap. But I'm not interested in taking anything here unless it gets to our premium levels up here. The market drops down here. to that point.

So this is the undelivered portion of the opening range gap. So in other words, from the previous day settlement price at 414 PM Eastern Standard Time to the low of that candle right there, this is the portion that is undelivered yet. It is not completely closed in the gap yet.

So we want to have this information and project it forward. So we're going to do that now and move the chart over. So this is what it looks like getting more data.

And you can see we dropped down into it later on during the lunch hour. So that undelivered portion gets delivered here. Look at the bodies respecting the new week opening gap of August 18th, 2024. Isn't that beautiful?

We get this little errant price action here, but the bodies are telling you the narrative. It's telling you the storyline behind it. This is algorithmic. The market runs above after it does this, this candle goes above this candles. Open.

So that's the change in the state of delivery on that candle right there. We trade back down, rally, smooth highs in efficiency, trade above it and starts moving back into a premium level and buy side here. So I want you to think about what I taught you so far.

And I mentioned this in Twitter spaces in 2023. So when I be on Twitter, I'm not on Twitter anymore. I used to do. audio commentary and I would talk about things that I want to talk about topical studies or just a rant on Saturdays.

I used to call them Saturday shotgun or shotgun Saturdays rather. And it was basically my way of just encouraging people, cheerleading, ranting, and also hiding levels and things that are in my repertoire as a trader and how to internalize price action with them. And I dropped. Obviously, the new day opening gap, the new week opening gap, first like that.

And I mentioned event horizon and passing there. And I talked about inversion fair value gaps. So while every fair value gap should not be looked upon as a potential inversion fair value gap because it's a fair value gap now, doesn't mean it's going to be used as one. But first presentation is a school of thought that I've taught. And it's not in your books.

It's not in all that kind of stuff. It will be now. Everybody's going to put it in their Amazon book.

They're racing to write a book based on the 2024 mentorship content. So you'll be seeing people having ICT mentorship 2024 study notes or something to that effect. And you'll finally see the first presentation theory, which is the fair value gap here that forms minimum 931. So you can't use 930 scandal when factoring.

the imbalance candle. The imbalance candle cannot form before 9.31. So 9.31, why is that? Because if you toggle electronic trading hours to regular trading hours, your 9.30 candle won't be there.

So it has to be framed on the regular trading session that's occurring right now. So it has to agree in both electronic trading hours and regular trading hours, or it's not a real fair idea. So if it's going to be first presentation, the candle that creates the imbalance is 931. Very earliest one. It can be that. Not before.

Okay. So I mentioned this also in the live stream. So go back and listen to it because it's mentioned.

I even show you why it's like that. So this is your real first fair value gap for the folks that left comments in my YouTube channel talking about why not talk about this one or refer to that one. Shouldn't that be the very first fair value gap?

Go back and listen and I show you why. And I just amplified it here on Caleb's channel. So this is your very first fair value gap. It's first presentation between 9.30 and 10 a.m. Filter is you cannot have it until 9.31.

So that is the earliest it can form it. But once you have one, you take that information and you can project it forward. So we can take that information out here right away.

You can see during the lunch hour, we work below it. I was working with Caleb. side by side. I told him, I said, it's going to hit this and sell short.

And it's going to attack that low and fill in that undelivered portion of the opening range gap. And look at the delivery there that my friends it's perfect. So these are types of.

Events that you want to have in your journal and Caleb you want to be looking for these types of things How does that first presented fair value gap between 930? What's a 931 to 10 a.m. Eastern Time?

How does it behave? How does it how is it used later on look how it's respecting it here You think that's random it goes up hits it drops back down rolls through it Overlaps it here and then right there at noon going into the lunch hours it's going to sell off. Now, obviously, when I say that, people that don't watch my live streams have never seen me outline one-minute candlesticks and give you the entire narrative of the day, where it's going to draw to, create the high of the day and the low of the day.

That's what was being shown here, and that's where it was being drawn to, and you knew that at the beginning of the live stream. These levels were here at the beginning of the live stream, and I said, I like this, how it's like that's nested down there. So it's a real good indication it's probably going to draw down into that.

and man did it here then we traced all the way back up into the needed and gap on august 21st 2024 then sewed off and then working in that first presentation of fair value gap between 9 31 10 o'clock eastern time new york time always new york time sells off consolidates bumps the relative equal highs then sells off aggressively the bodies tell you we're done start to pull back we're in your launch macro it's time to come back against the resting buy orders that would have been trailed for anyone that's short. So that right there is just a perfect display of what price action did on Friday, where we thought it was going to go. It delivered perfectly over 200 plus handles of price run that was outlined in advance that went against all of the messiness during a PAL speech. Okay.

Manual intervention. is most likely going to occur when a Fed chairman is speaking. And usually whatever they give you initially, it's wrong. It's fake. It is not jade.

It's a mess. And you're going to get hurt chasing after that. Okay.

So if we carry that first fair value gap throughout the entirety of the day, I also taught you in a 2024 mentorship that there is a final hour between four, I'm sorry, between three o'clock and four o'clock Eastern time, New York local time. 315 to 345. That is a macro. Okay. And look what happens here. The market stops right at the bottom of the first presented fair value gap.

So first presentation, 931 on Friday, August 23rd, 2024. I gave you the logic. I told you what to look for. I mentioned this in a Twitter space in 2023, and then I taught you that it was going to. be visible to see this in your charts while teaching the 2024 mentorship here.

And you want to carry that fear about you got throughout the entirety of the day until when 345, go back and listen to what I said and look what it does here. It's almost like this thing, this price action is running on an AI, like an algorithm, but that's far-fetched, right? So the market goes down and creates the very low at 345 at the bottom of the very first fair value gap that I told you. Good old ICT. Caleb's daddy.

I told you that that's what's going to be useful carrying it that far. And it hits it perfectly right then and there. Now, tell me that's buying and selling pressure. Is that what you're telling me?

That's not what that is, folks. That's absolutely coded logic based on time and price. When they both agree.

you got magic and where's the trade to right back up to a previous new day opening gap and swipes above the short-term high there for buy side and then it just meanders around into the close folks i want you to think about what i'm showing you here take copious notes each day when i'm doing a live stream and where i'm prompting you to do screenshots when if i'm doing it i may forget to do it because i'm if i'm doing it like i did on friday i was actually trading behind the scenes and engaging price action. But when I give you things to, okay, you want to screenshot this, you want to screenshot that, you might want to write that down time-wise. Just look at the time, your local time, and then go back into your charts after or whenever you can get to your own charts and then annotate your charts based on that reference point and then try to get it in your own charts, not mine.

If you use mine all the time, I promise you, you won't learn as well. You want to be in there marking your charts up yourself. fumble around with it because this is what you're going to be doing when I'm not doing live streaming, right? So Caleb's going to be forced to do the same stuff.

Caleb won't have my charts. He won't have my notes. He won't have my annotations. He's going to be forced to do these types of things.

So the only thing you're really focusing on now is what creates the high and low of the day. I showed you, I can call that and outline it beforehand and do it live, which is what I did on August 23rd, 2024 on YouTube in the presence of about 17,000 people. And Here we have the very specifics of what you're doing, how to screenshot it and log it. Everything that you observe here, it may not be just the things I've mentioned here. It may be other things, other order blocks, other fair value gaps, and make reference to them.

Don't be afraid to annotate something that you may think is significant now, but later on you'll discover it wasn't that big of a deal. That's progress. That's the thing you're going to see in your journal. Your journaling will be much more specific and you'll have far less things that are not important and they'll be the things that are most salient.

But how do you start doing this initially and first? First presentation, time of day, showing where the new day opening gaps and new week opening gaps, opening range gap, first presentation, fair value gap. Caleb, that's your number one, that's your go-to. And you want to keep doing this every single day for the rest of your career. And then you're going to start learning from this.

This is going to be your baseline. So hopefully you found this one insightful. And Caleb, now you have a baseline to work with. So I expect to start seeing these things on a day-by-day basis.

And until I talk to you next time, be safe.