Transcript for:
Understanding Turtle Soup Trading Strategies

Well good morning! It is a good morning. Audio check. It's a little loud isn't it? Sounded like I had a microphone right up against my lap.

Just give me a second here, folks. Audio check, audio check, audio check one. Audio check too?

Okay, I think we'll be fine. Alright, so welcome back to the number one live streamer on YouTube. The ghost with the most.

I've been dying to say that. I'm not the number one streamer. I'm just saying that just to be fun.

I know the guys that like to say they are. They're getting their panties on a bunch. All right, so we're going to have a kind of like an interactive session this morning. I have my son Caleb sitting next to me who is tardy arriving here. So we're going to be doing...

The Zoom type of thing, we'll have to have him join us that way because that way traffic won't be a factor for him. But he's here in person. You want to say hi to them? Good morning. Hello.

Morning. How y'all doing? Say it again so that way I can talk when you're talking because they like to think I'm doing ventriloquism next. I'm talking and you're talking too.

And you see right now. All right. Anyway, I hope you're all doing well. And I believe that everybody that has ever watched my videos has probably sent me a happy birthday wish some way, shape or form.

And I appreciate and thank you for all of that. So I'm officially 52 years old. So we're going to talk a little bit about what led to some of the things I was sharing.

And then you saw it pan out real time in your charts after I said it would likely do so. And I'm going to give you some tips on turtle soup. So the lecture for turtle soup is this morning as well.

Let me preface it by saying turtle soup is just a name that I like because I'd like the the kind of like a little snub. Against the turtle traders, Richard Dennis, he traded a bunch in terms of different markets and whatnot. And he made a point of saying anyone can learn how to be a trader. And he picked a number of people out of different walks of life and taught them how to trade a trend following model, which was rather simple, but not simple to follow. It had a very, very low strike rate, very low accuracy.

But when it would win, it would capture big, huge runs. you know long-term trends it was based on a 20-day high or low breakout and i don't obviously i don't trade breakouts i'd like to see retail resistance you know pegged and then reverse and then look for something that would take me to the other side of the spectrum in terms of like a discount market and vice versa so when i say turtle soup it's kind of like my version of a reversal pattern and I'll counsel you to take a look at the book Street Smarts by Linda Rasch and Larry Connors. I think it's a book that everybody should have in their library.

It has a lot of really neat little individual setups. I was more impressed by the little concise views of how to interpret price action around certain pattern formations. It's a little bit pricey, but I think it's worth it. I paid $175 for the book.

in the mid-90s when it was first introduced, and I think it's a wonderful book. I don't subscribe to everything in there because it's a lot to do with indicators and such, but I believe that book had the largest influence on me in terms of understanding stop hunts. So when a stop hunt takes place, it made sense for me to understand what was going on when I read that book. So that book had an influence on me as an early... developing a trader, trying to find my groove, trying to find a lot of confidence in the things that I deal with today when I'm reading price action.

But she has a pattern in there. Linda Rasch has a pattern in that book. It's called Turtle Soup, where they facetiously made kind of like a snubbing little jest against the turtle breakout system, where many times since their strike rate was so low, they said, okay, well, if it's so low, well, let's do the opposite. Meaning that if they try to buy a breakout above the 20-day high, many times that's going to fail. So since they had a low strike rate and being accurate doing that, so therefore there must be an opportunity there to do the opposite.

So if it breaks out above a 20-day high, reverse and go back into the range and take that as a trade. So hence turtle suit. So the turtle traders is what Richard Dennis named his little collection of off the street type.

individuals different walks of life treating them to be a trader he dubbed in the turtles so naturally the the pattern turtle suit makes perfect sense because they're they're cooked right well i don't look at a 20-day high i don't look at a 20-day low and then say that that's that's all there is to it there's other things and i'm going to show you some of those characteristics today before we close that'll be towards the end of the discussion i'm aiming for around 9.45 to 10 o'clock or sooner, depending upon how my wife comes back to the house and disrupts everything. So that's going to be the determinant factor that ends the stream. So I'm sitting in a live stream with you in my dining room. So you're going to hear all the ambience that's going on behind it because I'm not here for you.

I'm here for my son. So I'm teaching him. So this is what we'll be going on anyway. So you're here like it would be if you were sitting at the table with us. You're just being quiet and taking notes.

Alright, so I want to open up with... Yes, we'll be doing London. So there'll be an episode where I'm going to be live streaming the London session so that way you can take some of the concepts that I'm teaching you this week and you can apply it to that time frame.

So if you're not a New York session trader, whether it be the morning session or the afternoon session, you can't do that for sleep or business or whatever. And you want to be trading in a London session. I will be, I'll be doing that within the next two weeks. I don't want to promise a specific date because every time I try to do that. something invariably comes up and messes it all up so just know that it'll be in the next two weeks okay how long am i going to be live streaming and doing this i don't know so just show up every time it happens and if you can't be here live just watch the replay it's fine but today i want to talk initially about the asian session around when the market starts trading at the six o'clock restart so again as we talked about at 5 p.m every day there's a one hour break in indices and then they resume trading at six o'clock Going into the 7 to 9 o'clock timeframe where we can anticipate not a lot of volatility, but there's something there that if you're a working class hero in the States and you come home and you work 9 to 5, you come home, grab something to eat real quick, maybe pull your computer up and see what the market is going to do at the new open at 6 p.m.

And then watch it going into Asia. That might be your only opportunity to trade. So we're going to talk about that today. trying to give you a resource and perspective at that time of day how to look for the setups using what i've taught this week okay so you can see nothing's changing nothing's morphing into some complicated thing it's just a matter of taking your personal life your your perspective on when it is appropriate for you to be sitting in front of the charts and then i'm going to show you how to apply it to those specific times of day so you have let's see we got london new york open we have the p.m session in new york and then we have the asian session so we have a plethora of opportunities but it's up to you to find which one you're going to operate in okay so in my opinion and this is just purely my opinion it's not to sway you so if this is the time that you're going to be working in you know after 5 p.m coming home from work in the states this is all new york local time by the way if you're only able to do a couple hours in the evening before going to bed and starting it all over again going to work the following morning, just know that this is the least enticing time of day for me to trade me personally.

So, and now it sounds like I'm dumping on that and that's going to be very discouraging for you because if that's the one you're really only able to trade with, it could be a little disenchanting or deflating to you saying, okay, well, ICT says this time of day sucks. But if that's where you got to start while you have your job and you can grow from that. Just know that this is the least of the time of day that I'm interested in trading, which goes along with what I said when I was teaching Forex predominantly. I'm not interested in the agent session all that much. So since we're going to be talking about that time of day, we're going to see how to use this new day opening gap theory with that time of day and then incorporate the things I talked about earlier on.

So with all that, let's get into the business. I'm going to scroll back here. We have, this is my NQ template.

So when I'm watching price, this is what it looks like. Okay. I will have annotations.

I will have things that I want to call on when I need to see it or reference. If I second guess a number, if I'm looking at my notepad and maybe I've done something like anybody else would as a human being, I write down a number that doesn't just, it doesn't seem right. It seems like, wait a minute, that doesn't, that number was probably written down incorrectly. Maybe I was looking at the phone.

Maybe I was listening to my wife ask me something or tell me that, you know, make sure this is something to that effect. Yeah. I'm a husband too, right? Or one of my kids distract me or my dogs distract me.

And then I write down a number wrong. You've heard me miscall a market maker buy model as a market maker sell model. And I said redistribution when it should have been a reaccumulation.

So that's an element of humanism. And we're going to make a mistake. I may need to call the information back onto the chart. I don't like the habit on my chart. I only have annotations for the sake of teaching you.

I know what I'm looking for and I know what I'm focusing on for that particular session or that day. And I know the key levels because they're usually written on a piece of paper next to me. I'm not interested in having a lot of stuff on my chart because what that'll do, number one, it clutters it up.

My eye goes to it. It may be a factor for you where you start looking at the lines and you wonder how many times it becomes a distraction, right? So if you keep your chart naked, but you have the price levels in mind, what you're actually doing is you're learning to trade naked.

And by trading naked, You're not going to have any influence at all, except for what the price is actually doing at the time while you're looking at it. So in the beginning, I say this, it's OK for you to have the annotations on your chart initially. That's fine. But having them on, you know, once you understand what you're doing, you want to try to gravitate to that where you're trying to have as little as possible on your charts and keeping them clean.

Because you'll find what you can't really appreciate right now while you're new or haven't really done these types of things by watching price with these tools and these reference points being referred to while watching price deliver. You'll find once you understand how to use this information and by having them on a notepad next to you and you're constantly referring to the relationship to where price is right now versus them on a external piece of paper or maybe a notepad. you know not a notepad but like a like a tablet it needs to be external from the chart and that way it'll allow you to be flexible and i noticed in my own development when i would sense that the market was probably in trouble and not going to be continuously moving where i wanted to go when i had all these types of annotations on my chart what it what it did for me was it kind of like helped me in an adverse way of holding on stubbornly and Say, no, I'm imposing my will. It's going to do this because I have these lines and things annotated on my chart. So it's going to happen.

And for me to break out of that, I had to force myself. Eventually, it didn't happen fast. It didn't happen real quick. But I had to move away from having annotations entirely at all on my chart.

And then I became a lot more flexible where I could see, OK, yeah, this is problematic. It's telling me because price is showing all kinds of signatures and signatures of types of things I've talked about. like where we didn't see it trade into a fair value gaps midpoint or consequent encroachment, if it trades up into it when we're bearish and it fails to touch that, that is indicative of weakness. Because if it can't even touch the midpoint of the fair value gap or inefficiency, then it's decidedly weak, right? So we can really feel confident that if we take another bearish order block as an entry, if we get a fair value gap after that one that's on a 15 second chart, it's going to probably be a winner because everything is indicating that it's now going to be moving one-sided decisively lower because it can't even trade up to a PD array.

So if the PD arrays are failing when I'm already looking for a short and they can't even fill in or just trade back to the midpoint of it, that's wonderful insight. That's wonderful. It keys up on this is going to be a nice run and then look for the inefficiency below price or...

a single low or relative equal lows for it to trade to sell side liquidity. But I just want to mention this before we get into it, because you're going to see a lot of lines again today on the chart. And I want you to understand that I don't have this on my chart, but you need this initially for you to study because you're not supposed to be pushing any buttons even on a demo. You're supposed to be studying how price gravitates and moves around them and pulls back to them as a kind of like a magnet.

and draws price back to them, not just the one time, it will constantly refer back to them, which is what, in my opinion, proves unequivocally that there is absolutely an algorithm. And anyone that looks at this and studies it, they're going to have to come to the conclusion that either there's structured randomness, which is an oxymoron, or there's something in control. And they keep going back to these levels.

That's never really been referred to in history as a repeating phenomenon until I revealed it to you all. So having that generic perspective grow in terms of new week opening gaps, new day opening gaps, those are your primary factors for determining bias. Now, the bias can be reduced to just the session that you're trading. It can be reduced down to that hour.

So we can have. Models that build what's the hour that we're about to start trading in? What's that bias going to be?

What's the bias for the next three hours? That's typically like a session. What's the bias for the entire morning before noon lunchtime in New York? What is the entire daily range bias?

What is that going to be? And how do we arrive at that? Well, you're going to use the same things I taught this week.

You're just going to be looking for a starting point. When is it going to set the beginning point? Well, in the evening time, you're going to be waiting for 6 o'clock.

And, you know, annotate where we open. in deference to where we closed at five o'clock. So that hour gap in indices, we're annotating that for the new day opening gap. And whichever that six o'clock opening price is, if it's above or below, if it's above the closing price at five o'clock when we have our hour break, if it's above it, that means that that 6 p.m. opening price is your new day opening gap high.

And if it opens below where we closed at 5 p.m., That means we have a new day opening gap lower, and that 6 p.m. opening price that you're going to annotate is going to be your new day opening gap low. And you find the equilibrium, or not equilibrium, the consequent encroachment, which is the midpoint of it, if it's over 20 handles or so.

If it's over 20 handles, then I'm going to probably have the midpoint consequent encroachment annotated. Certainly anything above 20 handles, I'm always going to have that there. If it's less thin, I'm always going to just eyeball it. And the reason why I want to have that there, because if it's above 20 handles and I have a reference point that tells me that level, I know by eyeballing it, just looking at it without having an adaptation, I can see where the upper quadrant and the lower quadrant inside that new day opening gap would be. I don't have to have the lines on there.

OK, so my my emphasis today is for you to while these are important things to have on your chart initially while you're learning. And it doesn't mean rush through it because you want to go to. point of not having anything on your chart because I say I don't and therefore you want to be just like me and you think It's gonna be a superpower It's gonna slow you down if you try to trade naked without understanding or having the experience of seeing weeks and months of this So while I'm kind of like ushering Caleb through one month of this stage, he's looked at charts, you know before this So I'm just going through the pantomime basically of saying this is what you would be doing if you're new But you would be doing it for a couple months.

Whereas I'm just doing it for four weeks with him so that way you can see a baseline of what journal journaling looks like and while we're talking about that i want you to know what his youtube channel is and this is a little picture here that i wanted to refer to later on so we'll have this as a talking point in a moment his youtube channel Is this correct, son? Is that how you had it? Yes, sir. All right.

So that is, if you put this in the search tab on YouTube, that's his channel. We will have the first video for his development, his review, how he sees things based on what I taught this week and what his charts look like. Everything that I've been...

instructed you all to do and him throughout this week sunday probably sunday evening i don't know what time but it'll be sometime in the evening time the video will launch there and then i'm telling him i want to midweek like i need to see what he's doing and what he's looking at and what his charts are being annotated like i don't want to go the whole week because if he spent the entire week doing the wrong things that's building bad habits and you I want to know what he's doing in the middle of the week. So there might be a Wednesday video and a weekend video. OK, but if you subscribe to this channel here, then you'll be able to see the perspective from him.

And then where I'm counseling him, what he's doing correctly, what he's not doing correctly and adjust and calibrate where his focus needs to be going forward. So that way it's kind of like you're in the classroom with him, but I'm not answering your questions. So you have to just experience it.

through his his eyes his understanding and you'll see when he gets in the woodshed too so anyway that's i'll have a link for it also on my youtube channel so that way anybody that comes out and tries to put their little fake and they try to copy it so that way they can you know get traffic to their channel if you copy any of my videos ict gems youtube channel i already see that you're putting stuff up there right from these live streams i'm going to be doing copyright strikes against you this evening i already said do not do that If you take little snippets and stuff like that, little pieces, you know, I don't care about that, but you're putting the entire lecture on your channel. So I'm letting you know I'm sending shots to you tonight. If you want to take them down, wonderful.

I won't do it. But if you're doing that and you're another YouTube channel like Inner Circle Trader Brazil, you've been translating everything into your language there. I'm getting ready to fire them off towards you as well.

I do not give anybody permission to do that. If you use the closed caption option. you can find your language okay i've shown it several times when i was doing live streams on how to do it it's always there but you got to wait for the transcript of you completed by the servers on YouTube. Once that's done, all the languages can be converted right onto the closed caption.

Okay, so I know it sounds like a dick move, but I kind of warned you. So if you want to lose all your ad revenue, because I'm going to put as many videos as you have on your channel, that's how many copyright strikes I'm going to put against your channel. So just don't do it, okay, because you're going to lose everything.

So with that said, This little picture here, I want to talk about this as we open up going into the charts. What this does, it depicts the idea of everybody out there trying to do something for the sake of attention, clout, ad revenue, clicks, engagements, because that's what makes people money on Twitter or whatever. But when you're trying to influence other people with price action, where techniques to trade with, and you're trying to inspire them to do something to make money and prevent losing money, or you're trying to get people all fired up. This picture really communicates in my mind, you know, what most people are experiencing. It's the blind leading the blind.

Okay. And I hope that this week sitting with me proves that number one, my concepts are absolutely the source code to this crisis. It's exactly what price is going to do at the times that it's expected to do it. It's not ambiguous It's not it's kind of close.

It's right to the tick. It's right to the tick Okay And it repeats and I have the ability to communicate that and transpose that information into students and they're able to use this information Independent of me saying what I think the markets going to do in other words I have students that can do what I've taught them and they don't ever need to watch another ICT video And that should be your goal. Your goal should be, once you go through this mentorship, your goal should, I'm never going to have to go watch something ICT posted. It might be just as, let me just tap in and see what he's doing now.

I'm interested in what he says, but I ain't been there in a couple of months or six months or a year. Let me just see what he's up to now. And that's the perspective. But really, your goal is you never want to watch another ICT video.

You never want to come to my YouTube channel. You don't have to worry about making more ad revenue for me. by clicking on any of my videos. That's your goal, okay? Because if that's your goal, what that means is you're taking it serious and you don't want any tethering between me and you.

That's what a real mentor wants in their students. I don't want any of you holding on my hand or expecting me to walk you through every little trial and tribulation you go through as a trader because I've already covered 99% of that. But there's a lot of folks out there that are gonna try to tell you, this is good, this isn't good, what I said or...

They're going to try to strip it down even to less that hopefully will make them stand out and say, OK, I'm going to answer the call for the people that have TikTok mentality, the attention span of a mat, and think that that's going to help them. It's not going to help you. That won't help you. It'll make you feel like you're getting right to the point. But that just means that you're going to get to the actionable things, but you won't have the counseling elements that go around it because as soon as you find the hardship by doing it.

You're going to quit and think it doesn't work or you're not going to know how to cope with it and then grind through it, which is what I'm doing. I coach you through this and it gives you the perspective to maintain or expect going into it. And then what's the proper perspective after you endure it? That's mentoring. That's real mentoring.

That's not someone that's, I'm not here for clicks. Okay. I'm here to make sure that you watch my shit. You understand it correctly.

You do the things that's correctly explained to you. and avoid all the dumb stuff that's going to either slow you down or mess you up or derail you. This is how I would be wanting to be trained.

I'm taking the time to make sure that you understand it in detail and I want to see you succeed with it. So the blind leading the blind, that's always going to be a factor, but no one can deny that I was all over this week. Every single day, perfect. Not just close, but perfect. Perfect.

There's framework that we're going to pull in with the daily chart today, okay, because it's salient to the discussion. But I want you to know that we did not refer to anything above a 15 minute chart, except for the session on Monday, where I showed you that big gap on the daily chart, which happened to be the new week opening gap. We'll talk about that today.

And then how also that fits into the equation of how we're using the clustering of inefficiencies with new day opening gaps and new week opening gaps. Because I know there's a plethora of questions that this week has caused you to build up in your mind, or maybe you have a journal page full of all kinds of questions. I hope I see thoughts about this, this, this, this.

I might hit some of them today. I may not. Okay. But just know that every time you show up here, I'm going to answer something.

And it may be a question that it's been months or longer for some of you and then i'll say something that will open your understanding about it and say oh yeah now it makes perfect sense and it may not even be me directly saying the very thing that you have a question about but because you get further understanding about another element that supports the underlying question or concern or doubt you have then it becomes oh well that okay now it makes sense and there's so many opportunities for me to be able to draw an analogy from i can't begin to start with one of them but The session starting at 6 o'clock. We're going to zoom in this little area right here. Here is the 5 o'clock, or in this case... $4.59 candle that closes and the final print on that candle comes in at $18,558 even.

The very next candle at 6 o'clock, because of our delay where markets are not trading, we open up and that's the opening price down here. So that opening price, which you can see at the top of the chart, is $18,550.25. So between the difference of $18,550.25 and $18,550.25, we're going to have $18,550.25 where we closed at the five o'clock hour and where we opened at six o'clock that is what that's your new day opening gap and since we opened lower than where we closed that means we have a a discount lower opening is the difference between this close and this open greater than 20 handles no it's literally less than 10. So am I going to draw a line in there? You can if you want to have them on your chart.

There's nothing wrong with that Caleb, but if you are going to follow the rules that I'm teaching on, you really shouldn't need to see that line. Your eyeball should say okay, well right about in here that's about the middle or consequent approaching. And then if you can eyeball that, then you can eyeball half of that is the upper quadrant and the lower quadrant. And it's just a matter of doing it.

Okay, you don't have to have every single line on your chart because otherwise it's going to be a lot. And you don't need a lot. You just need one or two elements to have in mind where you think the price is going to gravitate to or gyrate around. And based on, like, for instance, we have the economic calendar today. If you've already done your homework and noticed that today there is no medium or high impact news events, none.

It's Friday also. We've had a large weekly range. And we'll talk about that for TGIF purposes before we close as well. So when we have this in here.

We're waiting for the market to do what? We're waiting for the market to create motion around this new day opening gap. Do not trade initially.

As soon as you get the gap noted here, you're not in there trying to trade off of it. Why? Because there's an element of time that has to be referred to first.

Because as I mentioned in the nauseam, the markets will not move until it's time. for them to move which is algorithmic yes price will gyrate they may have meaningless endless little movements okay that i'm not interested in but when time is now introduced as the factor that's the greatest importance that means at seven o'clock to nine o'clock that's your asian session you can you can use this new day opening gap now and build it around the element of liquidity So what does that mean? Well, if you look at how we have the market work and gyrate around, I'm going to maximize just this chart.

I know you're over here looking at this stuff like it's some kind of secret weapon. We're going to have all these lines amplified on the chart. I'll show them all to you.

And it's most of everything that you've seen all week long. Nothing's been added except the new day opening gap that was formed for Friday's trading last night at 6 p.m. Eastern time. There's nothing else over here, so stop looking over here or here. It's the same lines you've been watching all week.

I'm going to maximize this chart here, and I want you to see what we have done. We created a high, and then we created another high. So what is this high here in relationship to this one? What is that, Caleb? You're going to speak up.

Relative equal high. Okay. So we annotate that. So above this high, there's liquidity in the form of buy side. You want to be annotating that so that you're going to be taking screenshots of these types of things.

After it's happened, you start like this. You don't try to predict them. You're trying to avoid.

I need to put this to work right now and see if it works right now. No, you're studying it after it happens. And then you do a walk forward where you're watching price. without any button pushing without any kind of hard opinion but you're doing it with the expectation of collecting experience watching it so you're going to be doing it on the top on the left and that's how i like to annotate mine okay so now we have the market that opened at six o'clock we traded above short term high you can annotate that as a minor buy side liquidity pool it drops down takes out this low you can annotate that as a minor sell side liquidity pool but what you're waiting for is you want to see price do two things you want to see it leave the new dip in the gap you want to see it cross over it and go below it when it goes below it you don't want to see it just trade below for the sake of going below the lowest low you want to see a short-term low taken it does that see that so what is what is it done It's set an initial range to build and engineer liquidity.

You don't even need to see this one yet. But what we're doing is we're seeing how price, and I'll annotate it here for you, that high. And let's change it to black because I want it to be different. And we'll do this.

If you hold down control and click on the line or thing that you want to copy, don't do it on a little button here. You got to do it somewhere here and then drag your mouse away from it. It'll copy it for you. I learned that from my students. Most of everything I learned on TradingView is all from students.

So this is a little minor. That's a minor short term. So it would look like this.

Minor. Short term iso. And you want that real little.

And again, on the top left. And the same thing with this down here. You're going to hold down control, drag from the middle of the line. It'll copy it. And you put that right there.

And drag it through a little bit. And now you want to make sure that that's underneath it. So that's below, so bottom left.

And I'm going to change it to sell side. Because that's what's below, old loads. Sell side below it, buy side above it. Okay?

So what that does is it helps annotate your chart. And when you refer back to it, what I'm doing there is I'm holding down shift. That way I'm keeping the line straight.

And it keeps everything nice and neat. You might want to make that font. and text size larger but for me I like that because I don't want so much attention drawn on it I just want you to know that that's these are the types of things I want to see in your chart around the openings okay or the times I'm teaching you to focus on like the 7 o'clock in the morning 8 o'clock in the morning and 9 o'clock in the morning morning session since that's your time you're gonna be looking for the same event there okay so this is amplifying what's already been taught in this week's live stream but I'm applying it to this time of this time of day for the folks that can only trade this time of day they may not be able to do what you're going to be doing or trade at all except for this time so this is this is asian session trading this stuff works for forex too so don't think that it's just a one-trick pony for um indices this is exactly what you'll be doing the same thing in forex okay i don't trade crypto i don't know i've never investigated because i don't care to trade crypto and i'll i'll never do it so i know a lot of people are still asking about that but We have a short term. sell side liquidity pool below here and we have a short term buy side liquidity pool here at six o'clock and then we have the new day opening gap so we have new day opening gap and what we're watching at that very moment is you want to see it trade away from it which is it which it does is it going somewhere randomly no it's just going in here to do what it sets an initial range for building and engineering liquidity that means now there are going to be buy stops that form Right above this high.

So this is what you're going to have in your chart. And on the bottom, down here. And some of you are like... Man, this is a lot of stuff to be doing and I ain't making money yet.

Well, if you don't want to do this, go trade indicators and check back with me in six months and tell me how you're doing. I know you'll be watching these videos. And I'm going to stretch this out just a little bit more because conflicting. So now we have that on the wrong line. I'm sorry.

That's where it needs to be. So what we've done is we've taken out this short-term low, and we created an initial sell-side liquidity pool. And we went above this short-term high, and we created an initial buy-side liquidity pool. Why is that classified like that?

Why am I labeling that high, and why am I labeling this low? And why is it initial buy-side and initial sell-side? Because we've opened a new day at 6 o'clock.

We created the inefficiency that is the new day opening gap. It's moved away. That's the first thing we're looking for. It needs to move away from it. It does so.

What is it going to do? It takes out the short-term buy side. Does it go back now below the new day opening gap?

Yes. Why? Because the algorithm is calibrating and setting, and this is visually representing how the algorithm engineers liquidity.

It takes a short-term pull of liquidity out and then goes to the opposing side below this low. Now there's a new low and a new high. after six o'clock.

You see that? This is the initial high and the low that every trader that trades at that moment is going to refer to for where their stop loss is going to be. So this is no longer a factor.

So while that's important to have on your chart for the purposes of learning, you want to kind of keep it muted. Don't have it so prominent in the chart. And the same thing down here. But you do want to have it initially as a screenshot while it's doing this.

When it runs up here like this, when it does that, screenshot it. And then later on, if it rolls down and take out that level, screenshot it again. Because you want to see these screenshots as they go to the levels of interest. Like this, it should do that.

Now, what happens if it did this? If it was in here and it went down there? first and it took out that low okay you would screenshot it as it happens and then you would anticipate it running above this high and what you would do you know classically it will do that there are times when we start the new day at six o'clock and it'll just dilly dally around and do nothing and it won't even bump above or below if it doesn't do that don't worry about it that's typically telling you that age is going to be double it's not going to do anything it's probably a good day for you to go watch a movie with your spouse or go exercise and then go to bed early get rested for your workday tomorrow.

But you want to be doing things with a purpose of knowing that it's going to fit the characteristics that are synonymous with the market making a sizable move that's predictable. And if it's this real lethargic and lackluster at six o'clock and it doesn't really do anything going into seven o'clock, because that's your key time, seven o'clock starts the Asian session. And you think it's just for us. No. these markets are ran through artificial intelligence and sometimes they're tweaked a little bit manually to cause a little bit more excitement or to disrupt something okay so now we have initial sell side liquidity for the day and initial buy side liquidity for the day outside of those two reference points then you look to the left and say okay where are the larger pool of liquidity well obviously it's here so if we have that Once we broke through here, we have to see it do another characteristic with the new day opening gap. We have to move away from it initially, go to a short-term high to take liquidity out, which it does here, and then drops down below, crossing over the new day opening gap.

So this is where you want to see it coloring outside the lines. So many times I've introduced ideas and talked about specific PDA arrays, and when I tell people annotate this level, annotate that level, this is a fair value gap. This is an inversion pair value gap.

This is something else. And as soon as someone that's watching it sees it cross through, they think, aha, it didn't even hold. He thought, you have no idea what the fuck you're talking about.

You have no idea what you're talking about. And this is the stuff that pisses me off because they can't wait to do the, I gotcha. I'm going to go on social media and see what I did here, did it wrong, and try to make videos and bullshit.

This is the logic behind it, okay? You want to see it trade away from the new day opening gap as it formed. and if it goes up it's taking a short-term high out and then you want to see it cross back over it and seek a short-term low which is what it's doing here once it does that and it crosses back into it again we have now set initial buy side liquidity and initial sell side liquidity now you're going to wait what are you waiting for ict when's this when's the time of day for asia seven o'clock okay go over here to the vertical line does this seem complicated yet Let me know if this is complicated, okay? Because this is really simple stuff.

Really, really simple stuff. So now we have what happened. The market crosses back above new day opening gap.

Does it take out the low here, right there? As we're heading into 7 o'clock, what is it doing? Is it moving to this low to challenge the sell-side liquidity? Absolutely not.

So what is it doing here energetically here? What is it doing? It's placing the lead upside.

Right. So it's crossing over the new day opening gap. And then at 7 o'clock, what does it do on the 7 o'clock candle?

Look close. Let me take this away for a second. What do you see it do? It dips back into it just slightly. It retrades to the new day opening gap that was formed.

right over here. You see it touching that? So if it's going to go back to that after having displacement here, it's already set the initial boundaries for the sell stops and the buy stops. So the algorithm is giving the signal right here. Now we're touching, we're inside the element of time, Dave.

So the market should displace. above this high, relative equal highs, challenge the initial buy side liquidity, and we'll test and hold to see if they can run above this high. Now you know because you sat with me last night, we actually did this. We actually traded it.

We pushed the button and there it is. But I'm going to show you the logic behind this. That way you as an individual that wants to trade the Asian session This is the protocol. This is the guidance. This is the step-by-step.

This is what you do. This is all you do. Every single day, you're looking for these signatures, these characteristics. If they don't do these things, guess what you don't do? You don't push a button.

You don't trade it. You don't have high expectations, but you still study it. Is that clear?

Yes, sir. Okay. Not that you're going to be trading this time of day, but I have to make sure that it's the same way for you when you're doing it in the New York session. So at 7 o'clock, you're going to be studying and looking at prices.

looking at price to do these same things. So if we look at how the price opens on this candle, it drops back down and touches and retrades to the high of that new day opening gap. So everything's in motion. Everything is set. We did not have a interest in going back below the initial sell side liquidity that took out this low.

The key things are this. We're gyrating around the new day opening gap. you want to see this but when it comes to time seven o'clock is your time in asia the the algorithm will will come online and you'll see buy programs and sell programs begin right at seven o'clock or just after it okay and you're only really interested in until until nine o'clock so if you're a working class hero in the united states or if you're overseas and you want to trade in this time of day Your key times are 7 p.m. New York local time to 9 p.m. New York local time.

So it's a small little window of focus. You don't have a whole long, you know, it's not four hours. It's a very small segment of time.

And I want you to go through your charts and I want you to annotate these things, not you, Caleb, but everyone else that may have an interest in this. Even if you don't want to trade this type of time of day, it's beneficial for you to log this because you're going to see things that will further prove that the markets are algorithmic. And they're operating on the things I'm teaching you that they do. Okay.

So anyway, the down close candle in here. trades down, touches the top of the new day opening gap. And now because it's seven o'clock, it's proven that it's not going to go down here.

It has no interest in it. And this run here, this right here, that is indicative that it wants to run. So because it's doing this, this buy side unbalanced sell side efficiency, I would have no interest.

As you saw last night, I'm not interested in seeing it come back down into that gap. So what does that make this gap? It makes it a breakaway gap.

And so if it's going to break away from running higher and not going lower, what's it going to seek? This short-term high, I want to see, does it have momentum and speed in which it takes that relative equal high out? This high and this high. When it trades there, which it does right there, it pops through it real quick and then comes back half of this range, consolidates around it, boom, runs into initial.

Buy side liquidity. So now I want to see this treat it as rocket fuel. You ever see those guys that have their funny cars and they have nitrous oxide. You want to see the nitrous oxide button pressed in price action right when it does that.

You don't want to see it go up and then go right back in because what that was is it's a fade. That's your turtle suit. It's a fake out. What we're looking for is we want to see. like a nitrous oxide injection of strength speed when dad does the uh recordings when i'm trading and i'll type out and say i i want to see speed and magnitude i want to see distance that's because i'm i'm expecting these elements in price action at that at that moment i want to see that being visible in price and you can see it happening here and then we gap up where this candle closed it gapped up here when we trade back down into that right there That is an entry as well.

And you'll see those things as we start going to the charts live. I'll point them out to you. And when we take screenshots, this is an actual wonderful buy.

And then we start to roll up here. Then we see the classic volume and balance routine, retrade to it there. And that's another buy. And then you had this big pop here, which we watched happen. And we both were like, yeah.

And when it happens, like, yes. Well, it runs out there and took the buy side here. So visually, you can see how in this candle, I'll put that right over top of it. You can see the entry right there.

And what I was aiming for as I wanted to watch when it opened and traded down, I wanted to see it get below the body of that down-closed candle. I don't care where in the spectrum of that wick, because that's a discount wick. I'm buying that order block because I understand it's an order block.

Everybody else will simply say, well, you've got to look to buy the down-closed candles. And that just shows that they only listened to my very first introduction to an order block because they don't understand what an order block is. So I want to be in the discount element of that down-closed candle, and I want to be entering below its body. In this case, it's the closed.

So if you look up here in the upper left-hand corner. You see the close, it says 18,560.00. Yes, sir.

I want to be buying below that, at it or below it. And my entry was 559.75. So that's pretty good. And then it rallies. And when you have this break like this, your stop loss has to be below the consequent encroachment underneath the opening gap, which is what you got, which is what you watched me do last night.

So for the folks who are saying, where would your stop loss be? Because we gapped up like this and we've already done this. Watch what we've done.

We've opened here. We created a new day opening gap. We took short term liquidity here, took short term liquidity here. And then we cross back over top of new day opening gap and then cross back down below it. And then we now we have this displacement ahead of seven o'clock.

You see that, folks? You see how that element of just it's it's letting everybody know that sees price with this understanding. You're not supposed to know this. I'm not supposed to be teaching it, really. But these are the little hallmark signatures that, okay, it's about to happen.

So now we have to reference these completely random levels. The new day opening gap, something that's been renamed or revamped by somebody else that nobody has an identification on. Nobody's there to pick the $5 million up for me having been exposed as this is where he copied it from. Wyckoff has no idea what the fuck we're talking about here. If he was, he'd be my student.

This touch of that high of the new day opening gap, that's your trigger. But I want to get in there right as it's trading back to that WIC, which we're going to talk about WICs as gaps today also. The market has immediate feedback and tells me I'm on side. I don't need to worry about anything now. And as soon as we take out this high here, the stock goes to break even or the very minimum.

It has to be at the top of the new day opening guy. And, you know, you don't chase it. You don't see me rush my stop loss. You just relax and let it happen. So the market gives us two qualifying, comfortable, like consoling, like it's OK.

Don't worry about it. It's coming because we see the displacement here. And when we see the displacement, every displacement does not have to see it trade back down into. It's better for your trades to not see them return into buy side and sell side efficiency at all. That's what you really, really want to see.

If it has the interest to go back into it, that is indicating that if the move is coming, it's being deferred and you're going to have to sit through a period of uncomfortable. waiting and maybe a little bit of drawdown or chopping it around before it takes off. I don't like those types of trades, which is why I like to look at the market when it creates these types of characteristics where it's really indicating that, hey, it's about to pop.

It's doing exactly what I want it to do. We can time it because the market operates on time, not price first, it's time first. And you have to know what these elements of time are and why they're a factor.

Otherwise, every Mickey Mouse bullshit indicator or even my stuff applied at the wrong times isn't going to work. So you have to have these elements of time determined ahead of time. And it has to be your central focal point for your model. If you can't arrive at that as, okay, that makes a lot of sense, then you're going to struggle. You're not going to have any success with this.

You're going to think it's all contrived as much as I keep showing it and proving it. It'll still just be, he's lucky or it's just It just happened to be randomly in his favor that day. Anybody can make excuses for not wanting to do it, but no one can make an excuse and say it's random because it's absolutely following the logic that I've been teaching for decades. So there's our entry.

And then we want to aim for something above this buy side liquidity pool, because if we know that it's likely to trade up above it, how can we arrive at a target that is close to it? Well. What was the leg of price prior to this run up that's going the other direction? Can you see it's this high down to that low? So in other words, we had this movement, kind of like a slingshot or a catapult.

Price is winding back, and then it takes off and runs for it. You see that? So we can take this price leg here to that low, and we can get some measurements to get a baseline for range finding. So if I'm interested in a run, that goes above this high here okay once we have indications that we have this high taken out which is what we get there that's the second qualifier that really builds the confidence that this trade is going to be a runner in other words you shouldn't have no anxiety at all about the trade not panning out because we had this ahead of time rate going into seven o'clock we already worked above and below the new day opening gap we kept initial sell side in play there and now we refer back to this one so this is the buy side so that's where your initial interest is do we have the momentum and interest to power through that because it could have very easily done this it could have went above it and then started to break down and that would have been just simply a losing trade and there's nothing to be afraid of with that but it's not likely to do that if you have something like this where it starts running energetically proving that that low is now not interested to take out that well and now the buy side here and here and here is where we're focusing on because the Johnny come lately is that didn't trade yesterday and they weren't bullish.

They're trying to get on board because now the market started trading at six o'clock and they're trying to buy anything that gives them a reason to be long. So I want to capitalize on that and know that any rallies that it forms is going to be short-lived. So I have to know beforehand, where are my exit points?

So how far can it run up above this? Biosol liquidity. Well, we're range finding by taking the fib from here to here and all we're doing is measuring the distance between that low and that high and then duplicating it okay going up one measurement of that and in a half which is why we have that standard deviation there of one that's negative 1.5 so what that is is this range from high to low times 1.5 so it's it you get a baseline numbers let me show it to you like this if i do this and show you just the negative one what that will be is a perfect measured move so in other words it's from the low to this high perfect duplication added to this high would be here.

Okay, so that would be that would be a good place to take a partial. If we had more than one contract on, we could have took a partial there and had a limit order to sell there and then aim up here. But because of this idea of this is where it can color beyond my expectation of just going above the high, this is one standard deviation. So what I do is I like to find the midpoint between them. So if I do something like this, I'm just going to eyeball it real close.

If I know that this is where the midpoint of both targets are, so if this is one standard deviation, I'm sorry, one standard deviation, and then we have negative 1.5, it's affording me the ability to see. Where targets could fall and I don't have to be perfect about getting the actual high even though it does trade up there And when you first saw the Fibonacci late on top, it looks like wow It's a bit ready to it, but you can see my price exit was six or seven and a half, which is just above It's just above half way. So that so we have negative negative one Which is a full measurement of this high to that low and we show you graphically also So it's this range here.

You take that and you add it to the high right there. And you see, that's what that is. So you can see I'm taking that little block of price action from this high down there.

And I'm thinking of that as a block of price action that if it's going to go higher and it has typically always, it's very easy to have a very low threshold targeting methodology based around measured moves. And this is the classic measured move perspective, but I don't like that. because everybody, Tom, Dick, and Harry, is thinking that way.

And I know that while that's meeting the criteria of getting above this high for the sake of trading into those buy stops, I want to have the next tier in precision. So I want to know where is it really likely to trade to. So if I get a negative 1.5, I'm getting, yes, this range, but I'm also aiming for kind of like extrapolation.

where it just gets really ahead of itself and just gets animated way beyond everybody else. I mean, like we said last night, we were watching it like, whoa, that thing really took off. For Asia, it was really fun.

It usually isn't that eventful. But when it popped up there like that, what I had done was I looked at the negative one and negative 1.5. And in between that, okay, that was kind of like what I was aiming for, which is like 1.05 something. And I was thinking, okay, well, I know it's likely, it's very likely to trade up here. But what happens if I don't get my limit?

You've watched me before where I'm putting trades on and they give me the price that should fill me and it don't fill me. So because I'm trying to be too precise. So the way I trade, I want to be in that little gray area, which would be here between where I think it ultimately may reach for and where a certain measured move idea where that's real measured moves.

If you're going to say. Dad, give me a role of pulling out targets where I know that they're absolutely low-hanging fruit and I don't have to worry about it. And you're willing to let bigger runs just evade you because you want to be able to get into the trades. And as long as all things being equal are saying that trade's viable, where is the no-brainer exit?

That this is always most likely going to be the best exit point that I can take and not worry about it, not do too many calculations and spend too much time. It's the measured moves. So whatever price runs that you're expected to see, if you're looking for a bullish run, just look at a price leg that was prior to the run you're in as a long and then do a measurement like I'm showing you here. And that would be here. If it meets the criteria of trading into an old high or relative equal highs, because there's real stops, that's going to be the draw.

The markets want to want to book there because there's real orders resting above that. Well, Dad is who I am. I'm always trying to be better than everything else.

So I want to know where it's going to reach for, but also the human in me that can tend to be wrong sometimes. Or sometimes the market is fickle and says, fuck you, I see you're not getting your limit order, right? So I want to be in that gray area, which is between where I think it ultimately is going to go and the low hanging fruit threshold, which is in this area here.

So that line right there, I want to have an exit that's above, at or above that level. See that? So this is the reason why we talked about this and I'm just doing it for the sake of the people that are watching and wanting to learn.

But if you look at where I exited, you see where the, see that little arrow, that little arrow that appears when I hover at the top of the arrow that says when I got down there, that's where my limit order was. And I'm okay. Truth be told, I'm really not okay. I'm really not okay. I really want to be able to nail the highs and do all that.

But I also know that sometimes they're just going to say, screw you. Okay. You're not going to have it today. And I don't like when they had that win over me. So I'm just going to be content with this is, this is good.

It's better than most people on the internet. It's most, it's better than most people that trade. They don't have the, they don't have a methodology that's going to be consistent.

That drives them to, I mean, if you look at all bad trades. and any of the people that see it. You can see I'm buying the lows. I'm getting out at short-term highs and I'm distributing my positions at these key points.

Sometimes I do phenomenal and I get really, really close to the actual highs. But truth be told, you're not going to get that as a steady diet. So the way you manage that expectation and overcome the realities of you not being precise in the beginning or throughout your career, you're not going to be perfect. I'm pursuing perfect. It's always been a target that I know is going to evade me, but guess what that does?

It keeps me chasing it and keeps me young and keeps me virile and like I'm hungry. I'm going to constantly seek that. And you're not going the wrong direction.

You're always going for improvements because as soon as the day you come into trading and say, I have everything figured out, I'm never going to try to improve myself. You're going to start getting lazy. You're going to start doing stupid shit, break rules, and then you're going to try to entertain yourself with doing dumb stuff that hasn't been taught to you.

Thinking, let me try something and test it, and then you're going to lose money. and then it becomes a toxic you know impairment that now you've done something and then you feel guilty about having done something that you weren't trained to do and so many students so many other traders that don't even use my stuff they waste time doing that and they become a waste as a trader because they've done stupid so this is what we're doing to trade asia all of these elements are repeating factors that you as a student if you want to be trading this time of day this is what it looks like This is the protocol. This is the guidance, Kimmel. This is everything that you need to do. And by doing this markup every single day, you will understand what you're having questions that arise in your mind right now.

But what about this? And what about that? All of those questions are going to predominantly be answered because you have exposed yourself to annotating the chart, doing this every single day, whether it be Asia or whether it be the New York session like my son Caleb's. getting self-prepared to be only focusing on or if it's the afternoon session okay or if it's london and you'll see me do the same thing at london just as a tip your hand um i tip my hand to you um the delineation here that would simply be at two o'clock and guess what it's going to do what i'm describing here so all you're doing is you're watching what price is doing the only difference is where we have the new day opening gap here see i love i love sharing instead of the new day opening gap what we're going to be looking at is the 30 minutes after 12 o'clock to 1230 New York local time. Cause that is your opening range for London.

You're not surprised if you went through the mentorship on videos on the YouTube channel, but for the people that just got here, they're like, Oh, he's dropping the saw. Oh man, this is so good. ICT Jim's going to put that in a clip.

I'm sure. But anyway, this, uh, this day obviously, um, moves back up in consolidates this is what i love i teach this in the mentorship stuff too it's everybody's like yeah it's it's it's creating a bull flag you see how it runs up quick consolidates and they want to see another leg of that repeated up that's that's fake and i teach how to determine when those fake ones are in the mentorship on this youtube channel but it breaks down it responds back to what level where old initial buy side liquidity was here now the pundits will say all he's doing is talking about support resistance because see how it was resistance here just draw your line through here and just draw it up here i know it's bullshit Because there's so many instances where you can see where prices turned as a short term high or as a short term low. And you can have a line drawn there and the market just runs through and says, see you. Like it doesn't respect it. So why this creates an important turn here is because of what I outlined in here.

It's initial reference points that the algorithm is going to refer to. When you start looking at support resistance. students that are listening, I don't want my son screwed up with that bullshit thinking because he doesn't understand the retail element of retail support resistance.

But for the folks that are listening and have been trading for a while, you'll be better at selecting classic support resistance as it's kind of like promoted in books and courses and other people out there or people that will watch me and say he's complicating everything. All you need is support resistance. I'm challenging someone else to every day go out on the live stream.

Okay, and tell us the only support or resistance levels that are going to work. So go fuck yourself. Okay, because that's the litmus test.

For anybody who wants to make a video or a live stream or leave comments and other people's bullshit. Okay, do a live stream. I'm doing this Monday through Friday now.

Okay, I have an open schedule. I cleared my book. I'm going to be doing this every fucking day.

So you that have that perspective that you think it's just support resistance. Okay, and I'm just doing that. Okay, now you have the task of being out on a live stream and doing the correct, only ones that work, support or resistance.

Okay, and you got to call the market around that because that's what I'm doing. Don't believe me? Look at yesterday.

It's a fucking phenomenal reversal, wasn't it? It's lucky. It's all lucky.

So anyway, we sweep back down below the new day opening gap after touching the initial buy side liquidity reference point and then drops lower. goes back into that volume imbalance there. And then we cross back below new day opening gap. So what's below the new day opening gap that formed last night at six o'clock?

We have the new week opening gap. So that's the next level below us in terms of new week opening gap or new day opening gap. So now we know we can potentially draw down into that.

Look at this low here. We're digging into. the new week opening gap that was formed this Sunday that just passed. We trade up, we're gyrating around the old level that was formed at six o'clock or post six o'clock, where we had the initial sell side liquidity.

See how it's referring back to that? It's gyrating around that. So now everybody's grinning. They're like, man, this is amazing. This is amazing, man.

I can't believe this is for free. I can't either. I don't know what the fuck I'm thinking.

But anyway, they've had this consolidation and then we rally back up. and we're back into the new day opening gap and then we trade right back up into a reference point for that old liquidity that was outside the initial buy side you see that yes sir so we have a previous day high we return back to it here boom bump gyrate around the initial buy side liquidity and you can see right away why does ict use a notepad why am i referencing something i have scratched on my samsung Galaxy Note, which is so much better than Apple. Apple sucks. Fuck Apple.

The rotten Apple. We don't eat apples. If you want to use a real phone, you're going to use a Samsung.

Samsung is the shit. And I have no affiliation with them. I rep Samsung. Apples burn me so many times. I would never use another Apple product.

I don't give a shit. They made me a deal. I would never do it. And I'm not asking for a Samsung deal, by the way.

I just want my opinions to be appreciated because it's real. But anyway. Same thing here. We have that run up.

It looks like a blue flag. Retail is going to say, oh, it's going to run higher. No, it's not.

What's it doing here at 12 o'clock in the morning? All this run goes down to a random midpoint costco encroachment of the new week opening gap. But now what has it created? There's a range.

See, I'm already starting to talk about the running session. I can't wait to get it out of the way. I don't want to be, I really don't want to wake up to do it.

I'm going to be honest. I'm really glad that I can sleep through the morning now. I used to be up all the time training and doing Forex, but I know I promised I was going to do it. So I was there for a minute. But anyway, from 12 o'clock there, okay.

So 12 to 1230, three, there. Okay. That is your opening range for London.

Okay. So that's enough for you folks that are chomping at the bit for that information. That range, the highest high and lowest low between those two price points.

OK, think of it like the opening range at 930 to 10 o'clock in the morning, which is what we're involved in now for the opening bell. You extend that forward in time to the right and you'll see that the market will refer back to it. In addition to how it goes back into the new day opening gap that formed last night at 6 o'clock.

Look at the beauty of this. Bang! Draws back down. And it gyrates and works inside that range and then finally pops through, consolidating around the old initial buy side.

The same way it did before. Yep. And then hits the old buy side, hits it, hammers it, and then we have this big pump up here.

And now we're in six o'clock in the morning, it drops back down into new day opening gap, bumps the old high of previous day, hits it one more time. So many trades are gonna be formed around previous days highs and that was the first thing that taught on baby pips back in 2010 i said the majority of your big nice setups are going to form around old highs on old lows that meaning that previous days high and previous days left so you can see the elements of that unfolding here what is this level right here see i'm testing it as the initial sales cycle but yes very good so it trades up hits that and drops now think about it Okay. I'm telling you how to find the real support resistance. Is it not, is it not respecting these levels?

It's perfect. Yeah. It's perfect.

Right. So it's going right to them hammering. What time of day is that for me?

7.58, two minutes before eight. So we have the eight o'clock hour. We're watching to see what this price is going to do.

Well, we have low relative equal lows and it's here. So what would you expect to see? It dropped.

What happens if you miss this move sum? What happens if you see it start to drop and you miss this reaction here? What are you going to do?

You're going to wait. What are you waiting for? Waiting for a fair value gap or volume imbalance? There's a volume imbalance.

And then we have the open. It trades up, goes right into that. There's your short. And what's it going to aim for?

The relative equal lows that we were just looking at before I did this over here. So you have an entry here that targets these relative equal lows and these relative equal lows. Looking further to the left, we have this down here. Isn't that a relative equal low? Yes, sir.

And where's the market go? Well past it. Where is the trade down to?

On the new week opening gap. Low. Right. And then what does it do after that?

Reaction. See, folks, listen, okay? This is why I laugh at all of these asshats. Okay, let's sit back and say I reinvented something. I didn't reinvent shit.

I didn't rename anything I'm teaching you stuff that they can't find the source of to be able to say here's the five million dollar payout to me I see because I'm exposing you as somebody that's renamed shit. This is the biggest long-running Conspiracy theory there has been since I've come out and started teaching No, none of this information is anywhere else except for initially out of my mouth. This stuff is new It is the new breed of technology in terms of reading price action. And it's been in my hot little hands for the last three decades. And I often wonder why on earth would I absolutely be sharing this?

It is what it is. But the reaction you get here and it runs up, if it's going to have this much of a reaction off that low of the new week opening gap, what is reasonable for it to see it reach for? If you're inside the new week opening gap and it's shown the willingness to react this way. It's the midpoint.

And then if we're going to see this level breached and pierced on the upside, it does it here. It's dropping that down. Why would it want to drop back down?

It's going to a discount, like a slingshot, like I was saying, a slingshot, but it's reaching down into an inefficiency because there's no short-term lows in here, except for that tiny one right there, which to me doesn't have all that much importance, but my eye jumps right to that. You see that? Yes, sir. So if you're seeing look at the perfection there i mean look at that it couldn't have been more precise it hits it and then and runs same thing over here fair value gap drops into it there after taking a short term low out rally it goes back to this level now from here i want to see it trade above this high here it does and then we can react off of the consequent approach at midpoint and then it runs back up to what is this level again that is the initial sell side liquidity right and for the Missed what that was and joined the stream late. It was derived from there.

So we're not Sam Seidens Online Academy. We're not teaching supply and demand. We're not doing classic support and resistance, renaming it and calling it something complicated.

We're taking you with a view, a perspective that is technical science. I'm teaching you how to refer back to the same levels at the specific times that the algorithm will do. There's lots of them that I can't teach. But these are the ones that I can teach you where it kind of it's well, you know, it's perfect, really, that people say you're just teaching supply and demand or support resistance because I'm hiding in plain sight. If the lazy people come and see that's what it is.

OK, replicate it. If that's all it is, go do it, too. They won't.

They can't do it. That's why they teach and show examples in market replay. But. We are in the opening range.

Now, this is the part where we talk a little bit about something that you need to be worried about if you're going to be trading in that 95 hour. Okay. So if you get your trade done beforehand, then don't worry about it.

You're taking one good setup. Once you get it, you stop. You're not in here trying to impress dad.

You're going to impress me by doing your one trade setup and it pans out based on what you're trying to do and you're done. I'm going to be more impressed with your ability to not trade more than you should than taking a lot of trades. Right. I want you to have the ability to sit still because that is what messes everybody up Everybody does the wrong thing by trying to be more active than they should. Alright, so let's get this off here And now if you look in the lower right hand corner, it says electronic trading hours here That is 24 hours in the day It's just as long as it's trading you're gonna see every panel stick when I click on this It's gonna give you a regular trading hour option and it's showing that we're showing electronic trading.

Predominantly, I'm going to have electronic trading hours shown. But if you're going to be trading in a nine o'clock hour, if your trade hasn't formed yet, or if you missed something and you want to be engaging post nine o'clock at the opening bell, you're going to set your chart to regular trading hours and watch what it does. It looks different, doesn't it? Very much.

So what's actually occurring is you're seeing the difference between Yesterday's closing price, the regular session hours, and it's using 4.15. It's very confusing because electronic trading continues still even though when you watch the TV at 4 o'clock, you know, they ring the bell ding ding ding ding ding and they clap their hands like they fucking did something special. They didn't do anything.

Then for 15 minutes it settles and at 4.15 there's technically the day session is done but electronically it's trading until 5 o'clock. and then it stops and it opens at six o'clock. So you can see how this quickly becomes very confusing for someone that's never looked at it and studied it.

But for the sake of viewing what it is that's important about this perspective of regular trading hours, we have already arrived at what it has done here as it run up and hit it and then move lower because this is your initial sell sign that was set at the opening at six o'clock or shortly after. So when the market runs up in here and hits this level, It's actually hitting also the opening range. Opening range is 9 o'clock to 9.30 down there. So 9.30 is the opening bell. All of this is the opening range.

There is no 15-minute opening range. Opening range, algorithmically, it's 30 minutes. It's 9.30 to 10 o'clock. In that range, it's doing the same thing that I said when we were looking at the 6 o'clock. New Deal Open Gap, it's establishing initial buy side and sell side.

That's what it's doing in that 30 minutes. Sometimes the market will just break and never have any kind of opening range impact. It just opens where it opens and it starts running. In this case here, we can see that it's opening and trading back up into not a full return back to the previous close.

It didn't go up there. It just went right to where I gave you the initial sell side liquidity and how to frame it. goes right to that does a majority of the closure of the opening range where we opened from where we closed that difference is a gap so in other words when they're watching price until it opens up this is what you're looking at where we where we stop trading okay we stopped trading the previous day at 4 15 and then regular trading hours this is what we're highlighting here regular trading hours the next opening tick the very first print or very first trade at 930 it opens up down there This is the green candle. What is it showing?

The opening is the low. Okay. So as soon as you have that, you're going to highlight that entire range and then watch price.

You're not pushing buttons. You're watching price to see how it behaves. Normally, not always. Normally, when you have such a large gap like that, what will happen is, is the market will create a, sometimes it'll open trade a little bit lower and then start working higher, drop back down, either take the low it's formed or Just like it did here very subtly. And then route.

Why did it run initially straight from the opening? Because we had already taken out this level. See that? And then we worked into that range all the way up to the initial sell side liquidity, not the entire gap closure.

That's a huge paradigm shift for people that have asked all the time. How do you know when it's not going to be a full closure on the gap? Well, you're going to implement what I just did here. And all those factors are going to be weighing on whether or not the gap completely closes or not. I like this.

Generally, even if the market's going to be bearish and continue going lower after a big gap lower like this, generally you have about a 70% chance. And I say this now, everybody's going to think that means 100%, but it's not. 70% chance that it's going to go back to mid gap.

So there's always a trade available when you have a big gap down like that, that right there trading back into the midpoint, that is good. And look what it did. it trades and for people that heard that for the first time they're thinking well he's saying that it happened but i have traders that have been with me for 12 years now and they've heard me teach this before in mentorship i've taught this in i don't know if it was 2022's mentorship or just a regular video i did but i talked about um no it was live streaming that's what i was doing live and i talked about how it's easy for the market to get mid gap so mid gap is really really really strong probability if you get lower just find the midpoint which is what that is okay and you can see it does that and then what does it do it goes right back down and just bumps the low and then you get that run all the way up to the initial sell side liquidity which could have very easily retouched the close yesterday at 415 or half of that wick okay so I want to talk a little bit about the chart on the electronic trading.

So doesn't the chart look totally different now? Very confusing, isn't it? Very. So you have to have reference points. And what that does on my phone, usually, I'll scribble, you know, the key levels.

Like I'll have the levels in numeric format here. and I'll write down new week opening H and then you know the date it was on and that's what scribbled on my on my pad everybody wants to see my notepad that's next to my charts as I'm doing it like it's going to give them something special and it all it is is I don't want it on my chart I just want to have the reference points and as I'm watching price like right now it's trading at eighteen thousand uh four eighty two and a half okay I'm looking at my notes and my notes say I have new week opening that high at eighteen five thirteen and a quarter So I'm in close proximity to that. So it could come back and gyrate back up in there.

It can do so even further because we have what in play? What's this? The initial cell size of the qubit. No.

Visually, what is this? What are they? Relative equal highs. Yes?

Yes. This high and this high are relatively equal. And then you have this one over here.

Even though we bumped it a little bit, that's that right there. is still too clean for me. It's too clean.

So I want to sit back and watch and see, do they have any interest in trying to press back above that? I think that if they're really going to dump it today, going into the weekend, because there's a whole lot of things going on in the Middle East that everybody's afraid it's going to pop off. And those types of events that are looming, that is always going to be used as a, as a, a stimuli to upset engineer or impact, sentiment, or how people see trading. If it's risk on, which in my opinion right now, it's risk off. Risk off means that there is no one willing to really try to go in and think that we're at a long-term buying opportunity because there's so much uncertainty.

That's kind of what I'm getting at. There's too many things that can go wrong. And that scary type of looming event on the horizon could cause stocks to tumble because The street money thinks that that's what causes the market to drop, and that's not what it is.

But the algorithm and the people that have control over it, they will manipulate price. So that way, the sentiment is shifted based on the assumptions that WAR events would possibly be a catalyst for why the market crashes or has unfavorable price action. So there's a lot of things that you have to weigh out.

over time, you know, in your development, but initially knowing what to look for and then studying these fluctuations around it and studying how the market behaves around these elements of referencing time and price. What are we talking about? When we say time, obviously, you know, there's specific times that I'm teaching you to look at, but what's the price aspect?

At that time, are we referencing an inefficiency or are we referencing liquidity? You see how that's very simple, isn't it? It sounds ambiguous or it sounds lofty and complicated when I just say you got to, the market works on time and price and they think, okay, well, what time?

Well, it's the elements that I've taught in mentorship videos and lectures and the things I'm teaching you this week. But when it comes to the price, what's the price? The price is either an inefficiency or it's liquidity. It's something above an old high or below an old low. or relative equal highs or relative equal lows.

So they're not hiding from you. They're not hidden in the chart. They're not going to morph into something different.

Like when I just toggled from electronic trading to regular trading hours, it looked like a different chart. And then back from regular trading hours to electronic trading hours, the chart looks completely different. It looks like we're looking at a totally different market. Yes or no?

Yes. So having the right reference points is like much, much like having a navigation system. in your car. You know, if I write down directions and say, you know, turn right here, turn right there, go back, you still might get a little lost. But if you have the navigation system on where it tells you, oh yeah, there's a rest spot or a gas station in two miles.

Okay. Well, that's the same thing we're doing here. These levels are annotated on the chart for you to say, okay, there's a reason or a destination that could be had or met. If it goes up, it can go to those levels.

But what you're going to be doing is you're going to be looking to see when there is time for these markets to start gyrating specifically in the direction. And then the price is providing you an opportunity that you have identified as something that you see repeating all the time. I'm forcing this part on you. I want you trading the fair value gaps. That is going to kill two birds with one stone.

Number one, it's easy for you to see visually. They don't hide. They're very obvious in the chart.

And most of the viewers that are watching your development, they understand, even if they can't pick the right fair value gap, because that's what they're concerned about. They'll learn by default which ones that you're gravitating to that has my support in saying that, yes, that's the right way of doing it. And they, by default, will have a baseline understanding.

And even if they don't have the fair value gap as their model or entry, they'll at least get a better. foundation on how the markets are booking, what time they should start moving, what it should look like. And even if they're studying the fair value gap, most of them, if they're going to be honest, they're going to find that they'll see another PDA rate that I've taught and their eye just by default will go to that.

And they may use your fair value gap initially as the catalyst, the trust that's going to move. And, but then they may do something entirely different, trade an order block or trade a break or something like that. And then that will be the catalyst for them to actually get in a trade. They won't be getting in when you would be getting in because they're going to wait to see if you fail. And they want to be able to say, I'm glad I didn't do that because he failed.

That's his own son. He failed. But they'll take a trade if it moves a little bit beyond that.

And then they see the thing that they like to trade. And then they'll trade it. But they're going to have more anxiety versus when you get a trade on, you're going to be in open profit.

They're going to be in a new entry managing. potential short-term drawdown that they have no idea how far it's going to move against them. But they're going to refer to where your stock loss would be and how you would manage that trade and they're going to have a larger stock loss. And that's going to cause anxiety and scary feelings and it's going to be a terrible toxic learning experience because they're not going to follow the rules, which is what I'm pressing on you not to do.

Don't break the rules and don't try to reinvent things. If you didn't do it when you're supposed to do it or how you're supposed to do it, do nothing and just watch it in observance. Yesterday I talked about how when the market has, or was it yesterday?

No, it wasn't yesterday, it was the day before, where there was no news in the morning. Yesterday we had employment data and then we had a bond auction at one o'clock again. But prior to that, I think it was Wednesday, I said there was no medium or low impact news driver for the morning session. And I said, when you have that, the market can gyrate and move around from 830. And let's go back to 830. There's 837 right here. I'm sorry, 836. The market trades down to new week opening gap low.

Okay. And then we rally up, come back down. Fair value gap rallies back to midpoint consequent encroachment. And then you want to watch and see, does it have the ability to trade above it? It does.

Comes back down, touches the consequent encroachment and then trades back up to minimum new week opening gap high, but trades to the initial sell side liquidity reference point that the new day opening gap protocol teaches us to look for. So the trades to adhere and then we fall out of bed. All of this price action right now, as we're seeing, is exactly what I outlined when we have no medium or high impact news drivers in the morning session.

The market can be aimless. It can be choppy. It can be not as clear. Now there can be big, huge runs on these types of days because of external stimulus, something happening. a la the things in the Middle East, okay, or domestically here in the States because of who's running for election and whatnot.

All of these factors are weighing heavily for me as an analyst looking at the market saying, okay, I don't want to be holding anything overnight. I don't want to be trading very large. I don't want to be taking more trades than I should.

And that's a beautiful perspective to hold learning how to do it. Because if you start that way, then you have a better chance of not having all the... the bad stuff getting introduced to your perspective and or your actions as a developing trader because it's easy to pick up bad habits really really easy to do that and looking at what the market has done thus far we have really nice reaction off of the new week opening gap we've explored price up here prior to the session starting it's friday okay So what can we do? We can look at the weekly range because we have moved one sided. We've moved so far one sided that it's reasonable to see Friday have a retracement back into the range that was formed from Sunday's opening all throughout the week of trading.

How much of a retracement can we pull back in? We can trade back into that range 20 to 30 percent. It doesn't mean that.

Dad's trying to predict the closing price on Friday. I'm not trying to do that. I have stuff that does that, but I'm not trying to do that for the sake of the TGIF scenario.

Thank God it's Friday is simply a way for me to kind of like press on the students to think, okay, thank God it's Friday. It's a big week directionally one-sided. And we've had that this week. We've had the market just go straight on up. And we had a lot of movement to the outside, which means that.

The market is more inclined to trade back in that range to a degree of as much as 30%. There are rules that can see as much as a 40% retracement, but I have not found a way to teach it in a manner that wouldn't be complicated. So as I've mentioned it to private mentorship students, there are things that I have that I can't teach everything, obviously.

It's enough to know that. 20 to 30% is an easy ballpark figure. And you can trust sometimes taking shorts on a Friday that could trade as low as 30% of whatever the highest high and the lowest low for the week is. 30% minus the high of the week. That's where you can anticipate the market potentially trading to.

And sometimes it's a straight shot. Like it'll jump right there and go real, real nice. And then once it gets there, Then it peters out and goes sideways and then maybe bounce up a little bit, but then it's nothing else for the rest of Friday. The market just dies out. Other times, it just meanders around a little while, breaks down, meanders around a little while, and then breaks down.

And I think that's possibly what we'll see today because there's nothing to speak of on the economic calendar except for it's the end of the week and nobody wants to hold risk over the weekend. And they can do a nice reset by having the market come off of the highs 30%. and it wouldn't unravel anything even if it's long-term bullish still it's an option here these things can be still supportive even though nobody that wants to be long or is long wants to see 30 of the weekly range give up like they don't like to see that profit be reduced or open profit without having taken any of them all right so um let's take a quick look at yes real quick as a comparison we haven't done that all week Alright, so give me a second here. Alright, so the S&P looks even worse than ManageDAC.

Looks really bad. I wouldn't trust anything in here. It still looks a little too clean up here.

I would disrupt that before we did anything lower. Personal view on it if it dropped it would be comfortable for me to say it's okay I don't need to be a part of that move. I wouldn't take anything in ES Let's look at the Dow.

The Dow is YMU2024 Same thing here too clean. It would be reasonable for it to see it spike up into that I don't trade the Dow. The Dow to me is the 30-30.

And if there's a prostitute in these indices, it's definitely the Dow. And I ain't trying to get an STD. So this is one I don't touch. I look for it to kind of confirm market breadth and continuity in a price run.

If there's a divergence between it, I will have it on the radar as a contributing factor for determining whether or not I want to take a partial on the trade. If I start seeing the Dow go against what the NASDAQ and the S&P are doing, I will be cautious, but I won't probably trade with a complete closure of the trade because there's a divergence in the Dow because there's only 30 stocks that make up the NFC. But if I do see a divergence between the NASDAQ and I'm long and the NASDAQ has a higher high and S&P does not have a higher high, Chances are I'm probably going to take a partial off the trade because it's indicating a weakening momentum or an agreement with the... Don't even look at it because she'll just do more of it. Any divergence that I see in the Dow, I take it with a grain of salt.

But if I see a divergence and there's an inability of the NASDAQ and the S&P to make the same highs... To me, that's a more valid SMT divergence. In other words, it's indicating there's potentially much more weakness that may not be visible to the other traders that are trading it because they're not comparing and contrasting the difference between the three averages. So I think it's reasonable to see the Dow go up and disrupt this smooth area here because what's happened down here, this is all that jaggedness right here. So this down here is smooth.

So to me, it just makes sense for them to talk to it. basically get all this smoothness disrupted. Back to ES, same thing here. We have these relative equal highs.

I would expect them to disrupt that as well. Even though we had a higher high here, we can go back to this one. Now you can see the conditions are still being there. We have smooth relative equal highs here.

If that was what you're framing on, that's great. but if i'm going to refer back to this one it's in comparison to that and it still meets the criteria